This is our fourth integrated annual report (IAR). With this report we aim to provide all stakeholders with a transparent and balanced appraisal of the material issues that faced our business during the year under review.
The report should be read in conjunction with the full financial statements.
This year we have elected not to produce a separate online sustainability report, believing that our level of integrated reporting has reached such a point as to make a report on “non-financial” or non-operational issues redundant. We accept, however, that various stakeholders have particular interests in “sustainability” aspects of our company, interests that require a deeper level of disclosure than can be accommodated in this, more concise, report. Such detail, particularly as it relates to our social, human and natural capital, is given in our expanded online integrated report.
Scope and boundary of this report
This IAR covers the period from 1 January 2014 to 31 December 2014. The previous IAR covered the 2013 financial year.
This IAR provides an account of the group’s operational, financial, economic, social and environmental performance, as well as governance, during the period reviewed.
It covers the operations of ArcelorMittal South Africa which include Vanderbijlpark Works, Vereeniging Works, Saldanha Works, Newcastle Works, Pretoria Works and our Coke and Chemicals operation.
Although this report is considerably more concise than those of previous years, there has been no material change in the scope and boundary of the IAR compared to the prior year.
Forward looking statements
Certain statements in this document constitute “forward looking statements” which involve known and unknown risks and opportunities, other uncertainties and important factors that could turn out to be materially different following the publication of actual results.
These forward looking statements speak only as of the date of this document. The company undertakes no obligation to update publicly or release any revisions to these forward looking statements, to reflect events or circumstances after the date of this document, or to reflect the occurrence of anticipated events.
Progressing integrated reporting
This report has been prepared in accordance with the recommendations of principle 9.1 of the King Code and the International Integrated Reporting (<IR>) Framework as published in December 2013 by the International Integrated Reporting Council. This report contains Standard Disclosures from the GRI Sustainability Reporting Guidelines. A G3.1 content index appears on this website. We have self-assessed this report as meeting the GRI 3.1 Level C.
Content and presentation of information in this year’s IAR were informed by a third-party analysis of our 2013 report, which was adjudged “excellent” in the 2014 Ernst & Young Excellence in Integrated Reporting Awards, an appraisal that was echoed by the Nkonki Top 100 Integrated Reporting Awards which placed the report in its top 10.
In presenting a shorter printed report we have sought to fulfil the International Framework’s guiding principle of conciseness. We aim to align our systems so that our reporting processes achieve full compliance with the Framework by 2015.
To further enhance the integrity of our report we have opted for limited assurance of certain key performance indicators (KPIs). The number of indicators assured this year increased from seven in 2013 to 12. This assurance process will be further improved in future, in line with the refining of our controls and governance around these measures to withstand the same level of scrutiny as financial information.
Regarding the summarised consolidated financial statements 2014
We have provided summarised consolidated financial statements in our printed report, in accordance with International Financial Reporting Standards (IFRS) and Interpretations issued respectively by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretation Committee (IFRIC) of the IASB, in particular International Accounting Standard (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the Financial Pronouncements as issued by the Financial Reporting Standards Council, and the requirements of the Companies Act of South Africa as applicable to summary financial statements.
An independent audit was performed by Deloitte & Touche, expressing an unmodified opinion.
The board, together with the audit committee, takes responsibility for this IAR. The report was prepared by a representative team of the company, assisted by outside experts, which reported to the chief executive officer (CEO) and chief financial officer (CFO). All directors were given at least two opportunities to review and comment on the contents and to ensure the report’s integrity. In the board’s opinion, this report addresses the material issues and accurately presents the integrated performance of the organisation and its impacts. The board authorised this report for release on 10 March 2015.
Signed by the CEO, who has been duly authorised thereto by the board.
Chief executive officer