Rebuilding profitability and mitigating risk - ArcelorMittal South Africa

1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
A sound balance sheet with focus on
working capital management
Strong balance sheet
• Net cash 1Q13 improved by USD26m
• Intra-month borrowing (peak-demands)
• Sufficient /unutilized short term lines
• Very low financial leverage
• Non-core assets
Optimizing working capital
• 4Q12: Lower raw material stocks from improved
logistics in cooperation with Transnet
• 1Q13: Successful preservation during fire incident
• Commercial terms and cycle time management
provide opportunities
OWCR, rotation days and cash balances ($m)
Target 80
1,200
1,000
800
600
400
200
0
140
120
100
80
60
40
20
0
80
days rotation
days
Working capital ($millions)
Rotation days*
Net cash ($millions)
*Rotation days are defined as days of accounts receivable plus days of inventory minus days of accounts payable. Days of accounts payable and inventory are a function of cost of
goods sold of the quarter on an annualized basis. Days of accounts receivable are a function of sales of the quarter on an annualized basis.
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