ArcelorMittal South Africa Annual Report 2009 Directors’ report for the year ended 31 December 2009 The directors have pleasure in submitting their report together with ArcelorMittal South Africa Limited’s (ArcelorMittal South Africa) and the group’s annual financial statements for the year ended 31 December 2009. Nature of business ArcelorMittal South Africa, a company incorporated in South Africa and listed on the Main Board of the JSE Limited (JSE) is the leading steel producer on the African continent, producing long and flat products and beneficiating its by-products. Financial results and activities Earnings Year ended 2009 Year ended 2008 Basic (loss)/earnings (Rm) (478) 9 381 Headline (loss)/earnings (Rm) (440) 9 484 Basic (loss)/earnings per share (cents) (113) 2 105 Headline (loss)/earnings per share (cents) (104) 2 128 Net asset value (Rm) 21 925 27 995 Net asset value per share (cents) 5 465 6 280 Detailed reports on the activities and performance of the group and the various divisions of the group are contained on pages 22 to 36 of this annual report. Dividends A final dividend of 365 cents per share for the financial year ended 31 December 2008 was declared on 29 January 2009 and paid to shareholders on 16 March 2009. Details of the dividends paid are set out in note 17 of the annual financial statements. No dividend was paid or declared for the financial year ended 31 December 2009. Insurance In accordance with the enterprise-wide risk management policy adopted by the group, all insurable exposures were covered. Insurance cover was obtained in both the local and offshore markets through the group captive insurers. The largest exposure to the group is the potential material damage or business interruption losses from damage to the group assets. The insurance premium for the year amounted to R165 million (2008: R150 million), of which R154 million (2008: R101 million) was for combined assets and business interruption valued at R73 329 million. Property, plant and equipment There was no change in the nature of the property, plant and equipment of the group or in the policy regarding their use during the year under review. Capital expenditure amounted to R914 million (2008: R1 832 million). Shareholders’ resolutions •  The following special resolutions were passed by the company and its subsidiaries during the year under review: ArcelorMittal South Africa: special resolution passed on 12 May 2009 authorising the directors to repurchase the ordinary shares of the company, and/or, any of its subsidiary’s ordinary shares. •  Vicva Investments and Trading Nine (Proprietary) Limited (Vicva): special resolution passed on 1 June 2009 to acquire, by way of a scheme of arrangement proposed by Vicva between ArcelorMittal South Africa and its shareholders in terms of Section 311 of the Act, approximately 10% of the number of issued shares from ArcelorMittal South Africa shareholders. •  Change of name of Ferrosure South Africa Insurance Company Limited to ArcelorMittal South Africa Investments and Trading One Limited: special resolution passed on 24 June 2009. •  Ferrosure South Africa Insurance Company Limited: special resolution passed on 24 June 2009 authorising the following changes to the memorandum of association of the company: –  Articles 2 and 3 were amended by changing the Purpose Describing Main Business and main object from "all short-term" insurance for the Iscor group of companies" to"investments –  Article 1 was amended by the deletion of article 1.1.9 and the renumbering of articles 1.1.10 and 1.1.11 as 1.1.9 and 1.1.10 respectively.