Audited annual financial statements 2020

1 Audited annual financial statements 2020 ArcelorMittal South Africa Audited annual financial statements 2020 Contents to financial reportDirectors responsibility and approval of the group and company annual financial statements1 Statement by the chief executive officer and chief financial officer in terms of the JSE s Listings Requirements paragraph (k)2 certificate by the company secretary2 Directors report3 Audit and risk committee report7 Shareholders analysis10 Independent auditor s report12 Group and company statements of comprehensive income18 Group and company statements of financial position19 Group and company statements of cash flows20 Group and company statements of changes in equity21 Notes to the group and company annual financial statements24 Corporate informationIBCA rcelorMittal South Africa- 1 - Audited annual financial statements 2020 Audited annual financial STATEMENTSD irectors responsibility and approval of the group and company annual financial statementsTo the shareholders of ArcelorMittal South Africa

2 LtdThe board of directors (directors) is required to maintain adequate accounting records and is responsible for the content and integrity of the consolidated (group) and company annual financial statements ( annual financial statements ) and related financial information included in this report. It is their responsibility to ensure that the annual financial statements , comprising the statements of financial position as at 31 December 2020, the statements of comprehensive income, cash flows, changes in equity for the year then ended, and the notes to the annual financial statements , which include a summary of significant accounting policies and other explanatory notes, are prepared in accordance with International financial Reporting Standards, SAICA financial Reporting Guides as issued by the Accounting Practices Committee and financial Pronouncements as issued by the financial Reporting Standards Council, Audited in accordance with International Standards on Auditing.

3 The requirements of the Companies Act No 71 of 2008, as amended (Companies Act) and JSE Listings Requirements. The annual financial statements have been prepared by the finance staff of ArcelorMittal South Africa Ltd headed and supervised by AD Maharaj CA(SA), the group s chief financial order for the directors to discharge their responsibilities, management has developed and continues to maintain a system of internal control aimed at reducing the risk of error or loss in a cost-effective manner. The directors, primarily through the audit and risk committee, which consists of independent non-executive directors, meet periodically with the external and internal auditors, as well as executive management to evaluate matters concerning accounting policies, internal control, auditing and financial reporting.

4 The group s internal auditors independently evaluate the internal controls. The external auditors are responsible for reporting on the financial statements . The external and internal auditors have unrestricted access to all records, property and personnel as well as to the audit and risk committee. The directors are not aware of any material breakdown in the functioning of these controls and systems during the period under review. The directors are of the opinion, based on the information and explanations given by management and the internal auditors, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the group and company annual financial statements .

5 The directors have reviewed the group and company s financial budgets for the year to 31 December 2021. In light of their review of the current financial position and existing borrowing facilities, they consider it appropriate that the group and company annual financial statements continue to be prepared on the going concern basis. Refer to note 39 and the directors report for further annual financial statements for the year ended 31 December 2020 have been Audited by Deloitte & Touche, the company s independent external auditors, whose report can be found on pages 12 to directors of the company accept responsibility for the annual financial statements which were approved by the board of directors on 9 April 2021 and are signed on its behalf by.

6 HJ Verster AD MaharajChief executive officer Chief financial officerArcelorMittal South Africa- 2 - Audited annual financial statements 2020 Statement by the chief executive officer (CEO) and chief financial officer (CFO) in terms of the JSE s Listings Requirements paragraph (k) In terms of section 88(2)(e) of the Companies Act, I certify that, to the best of my knowledge and belief, the company has, in respect of the financial year reported upon, lodged with the Companies Intellectual Property Commission all returns and notices required of a public company and that all such returns are true, correct and up to Co Sec (Pty) LtdCompany secretary9 April 2021 certificate by the company secretaryThe directors, whose names are stated below, hereby confirm that.

7 (a) The annual financial statements set out on pages 18 to 104 fairly present in all material respects the financial position, financial performance and cash flows of the issuer in terms of IFRS(b) No facts have been omitted or untrue statements made that would make the annual financial statements false or misleading(c) Internal financial controls have been put in place to ensure that material information relating to the issuer and its consolidated subsidiaries have been provided to effectively prepare the financial statements of the issuer(d) The internal financial controls are adequate and effective and can be relied upon in compiling the annual financial statements , having fulfilled our role and function within the combined assurance model pursuant to principle 15 of the King Code.

8 Where we are not satisfied, we have disclosed to the audit committee and the auditors the deficiencies in design and operational effectiveness of the internal financial controls and any fraud that involves directors, and have taken the necessary remedial actionHJ Verster AD MaharajChief executive officer Chief financial officer9 April 2021 9 April 2021 ArcelorMittal South Africa- 3 - Audited annual financial statements 2020 Audited annual financial STATEMENTSD irectors reportfor the year ended 31 December 2020 The directors submit their report for the year ended 31 December of businessArcelorMittal South Africa Ltd (ArcelorMittal South Africa or company) and its subsidiaries (together, the group) manufacture and sell long and flat steel products and beneficiated by-products.

9 The group s operations are primarily concentrated in South Africa with a sales focus domestically and internationally, with specific emphasis on sub-Saharan company is a public company incorporated and domiciled in South Africa. The address of the registered office is detailed on the inside of the back cover of this company is listed on the main board of the JSE Ltd in Johannesburg, South Africa, and is a subsidiary of ArcelorMittal Holdings AG, which is part of the ArcelorMittal group. The functional and reporting currency is the South African rand (ZAR). financial results and activitiesThe contents of the annual financial statements adequately reflect the financial performance of the group for the financial year ended 31 December detailed reports on the activities and performance of the group and the various segments of the group are contained in the integrated 31 December 2020 the group had a net asset value per share of 210 cents (2019: 409 cents restated).

10 The net asset value per share was calculated using a net asset value of R2 344 million (2019: R4 477 million restated), and total number of shares outstanding of 1 114 612 789 (2019: 1 093 509 570).Refer to note 11 of the annual financial statements for information on loss and headline loss per with the group s dividend policy, payment of dividends is subject to the discretion of the board of directors (directors). No dividends were declared for the 2020 financial , plant and equipmentDetails of capital expenditure are provided in note with Competition Commission (commission) settlement agreementArcelorMittal South Africa has been engaging the commission regarding the payment of the part of the administrative penalty that was due in November 2019 and November 2020.