ANNUAL REPORT ARCELOR 2003 - paperJam

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18.2 Early retirement plansAn actuary reviews early retirement plans, which are either part of restructuring measures or collective agreements.The main assumptions and the movements during the year are summarised in the following table:Belgium Germany Luxembourg Other TotalIn EUR million 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002Balance sheet provisionActuarial value of commitments 399 245 62 46 17 33 46 37 524 361Unrecognised actuarial gains / losses 2 3 (4) - 8 - 1 - 7 3BALANCE SHEET PROVISION 401 248 58 46 25 33 47 37 531 364Breakdown of charge for the periodCost of past services 5 13 7 22 1 1 9 10 22 46Interest charge 15 12 2 2 1 - 2 2 20 16Actuarial gains / losses recognised during the period - - -2 - - - - - (2) -Amortisation of cost of changes in pensionscheme type or retroactive benefits paid 19 - 11 - - - - - 30 -CHARGE FOR THE PERIOD 39 25 18 24 2 1 11 12 70 62Movements in balance sheet provisionOpening provision 248 142 46 10 33 - 37 - 364 152Changes in consolidation scope - 132 - 15 - 34 - 26 - 207Exchange differences - - - - - - - - -Transfer of amounts previously recordedunder negative goodwill 19 - - - - - - - 19 -Reclassification (social plans transformedinto early retirement plans during the year) 175 - 6 - - - 3 - 184 -Disbursements (80) (51) (12) (3) (10) (2) (4) (1) (106) (57)Charge for the period 39 25 18 24 2 1 11 12 70 62CLOSING PROVISION 401 248 58 46 25 33 47 37 531 364Main actuarial assumptionsDiscount rate 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% - - - -Average rate of salary increase 2.31% 3.00% 1.53% 3.00% 3.00% 3.00% - - - -Inflation rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% - - - -NOTE 19 – OTHER PROVISIONSRestructuring Commercial Environmental Other TotalIn EUR million costs risks risks risksOpening balance 51 92 195 701 1,039Increase in provisions 53 47 23 220 343Utilisation and reversal (38) (44) (24) (206) (312)Transfer of amounts previously booked in negative goodwill 20 54 74Reclassifications, changes in consolidation scopeand exchange differences 19 (12) 1 44 52TOTAL PROVISIONS 105 83 249 759 1,196In EUR million 2003 2002Other long term provisions 983 849Other short term provisions 213 190TOTAL OTHER PROVISIONS 1,196 1,039164ANNUAL REPORT ARCELOR 2003
19.1 Provisions for restructuringProvisions recorded under this heading do not includesocial commitments which are separately disclosedunder “Provisions for contract termination indemnities”detailed at Note 18.Provisions for restructuring comprise provisions establishedin respect of charges for the restoration of sites currentlyunder restructuring.By sector, restructuring provisions are analysed asfollows:• Flat Carbon Steel: EUR 47 million• Stainless Steel: EUR 32 million• Other: EUR 26 million19.2 Commercial risksCommercial risks primarily include litigation withcustomers, bad debts, losses on contracts andtermination losses as well as guarantees and otheritems.19.3 Environmental risksProvisions for environmental risks, analysed by geographiczones, are as follows:In EUR million 2003 2002Germany 2 4Belgium 142 91France 71 71Luxembourg 33 28Other 1 1TOTAL 249 19519.4 Other risksOther provisions cover, amongst others, the followingrisks:In EUR million 2003 2002Litigation 63 23Social risks 24 95Tax risks 149 163Other risks 523 420TOTAL 759 701financial information > consolidated financial statementsNOTE 20 – OTHER AMOUNTS PAYABLEIn EUR million 2003 2002Fixed asset suppliers 222 248Prepayments on orders 188 166Revaluation of foreign currency hedging instruments 25 27Tax and social security 1,348 1,235Dividends payable 4 24Other creditors 298 233Deferred income 109 90TOTAL 2,194 2,023NOTE 21 – STAFF COSTSIn EUR million2003 2002 pro forma 2002(unaudited)Wages and salaries 3,395 3,500 3,243Social charges 1,095 1,086 1,020Contributions to defined contribution pension schemes 11 12 12Charges for the year in respect of additional employeebenefits giving rise to provisions 338 254 236Employee profit-sharing scheme 69 37 32Other 163 174 156TOTAL STAFF COSTS 5,071 5,063 4,699ANNUAL REPORT ARCELOR 2003 165
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ANNUAL REPORT ARCELOR 2003ANNUAL RE
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Message from the Chairman ofthe Boa
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Message from the Chairman ofthe Man
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Does this mean that the Group is en
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8ANNUAL REPORT ARCELOR 2003
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Portrait of the GroupArcelor was bo
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The Arcelor/Nippon Steel Corporatio
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Key Figures for 2003Revenues (1) Re
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2003 highlightsOn January 24, 2003,
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Corporate GovernanceBoard of Direct
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Report of the Chairman of the Board
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Role and authority of the Board of
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4.2. The Audit Committee andthe App
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AuthorityThe powers of the Manageme
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B. Internal Control Procedures1. GO
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3.3. Internal control procedures go
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Information regarding capital, mark
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Market informationListingArcelor sh
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Information policyArcelor intends t
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table of contents >Flat Carbon Stee
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Within this context, and in order t
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3.3. Packaging steelsThe packaging
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table of contents >Long Carbon Stee
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3. THE SECTOR’S PRODUCTS ANDMARKE
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table of contents >Stainless Steels
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The distribution of the UGINE & ALZ
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The adaptation plan - industrial re
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table of contents >Distribution-Pro
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2. ORGANISATION OF THE SECTORThe ye
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Other ActivitiesThe “Other Activi
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Group Consolidated Management Repor
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Trends in global crude steel produc
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Financial highlights for the GroupI
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Return on capital employed (ROCE) b
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BUSINESS BY SECTORFlat Carbon Steel
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Even though shipments in 2003 in th
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From a financial standpoint, and ex
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The Trading and Distribution busine
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- in September 2003, the sale of th
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The market tightness provoked by th
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Risk ManagementGeneral legal risks
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Group purchasing performanceIn addi
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Implementation of the Sustainable D
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Arcelor’s principles Principal ac
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Organisation of Sustainable Develop
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indicators 2002 2003Principle 4 - O
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Group profitabilityObjectives• Av
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Arcelor Health and Safety policyArc
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Safety certificationsSeveral Arcelo
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Arcelor Environmental PolicyArcelor
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Implementation of a monitoring plan
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Dialogue with all stakeholdersObjec
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Dialogue with societyArcelor partic
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Development of individual interview
Page 116 and 117: Scientific CouncilChairman:• Marc
Page 118 and 119: Corporate governanceObjectives• E
Page 120 and 121: SponsorshipEvery year, the various
Page 122 and 123: Durability: Manufacturers are now a
Page 124 and 125: 122ANNUAL REPORT ARCELOR 2003
Page 126 and 127: GENERAL INFORMATION ABOUTARCELORCor
Page 128 and 129: Cold-rolled flat products: In 2001,
Page 130 and 131: Safeguard clause• United States:
Page 132 and 133: 130ANNUAL REPORT ARCELOR 2003
Page 134 and 135: Consolidated financial statementsof
Page 136 and 137: CONSOLIDATED CASH FLOW STATEMENTIn
Page 138 and 139: NOTES TO THE CONSOLIDATED FINANCIAL
Page 140 and 141: Assets intended to be disposed of o
Page 142 and 143: AmortisationAmortisation is recogni
Page 144 and 145: 13) EquityRepurchase of share capit
Page 146 and 147: 18) Other provisionsA provision is
Page 148 and 149: The major changes in the consolidat
Page 150 and 151: NOTE 4 - INTANGIBLE ASSETSGoodwill
Page 152 and 153: NOTE 5 - PROPERTY, PLANT AND EQUIPM
Page 154 and 155: NOTE 7 - OTHER INVESTMENTSThe main
Page 156 and 157: NOTE 13 - EQUITY13.1 Issued capital
Page 158 and 159: NOTE 15 - MINORITY INTERESTSIn the
Page 160 and 161: 16.6 Detail of main individual long
Page 162 and 163: 17.2.2 Additional pension plansFran
Page 164 and 165: 17.2.3 Leaving indemnities (continu
Page 168 and 169: NOTE 22 - NET FINANCING RESULTIn EU
Page 170 and 171: NOTE 24 - RELATED PARTY DISCLOSURES
Page 172 and 173: The portfolio of financial instrume
Page 174 and 175: NOTE 26 - COMMITMENTS GIVEN AND REC
Page 176 and 177: 27.1 Breakdown by activity (continu
Page 178 and 179: 27.2 Geographical breakdown(Figures
Page 180 and 181: NOTE 29 - RECONCILIATION OF THE ARC
Page 182 and 183: Company name Consolidation Country
Page 192 and 193: Audit31, Allée Scheffer Telephone
Page 194 and 195: Annual accounts Arcelor S.A.ANNUAL
Page 196 and 197: INCOME STATEMENT FROM JANUARY 1 TO
Page 198 and 199: NOTE 3 - STATEMENT OF TANGIBLE FIXE
Page 200 and 201: NOTE 8 - PROVISIONS FOR LIABILITIES
Page 202 and 203: NOTE 14 - DIRECTORS’ REMUNERATION
Page 204 and 205: Arcelor Ordinary General Meeting on
Page 206 and 207: GlossaryAnnealing:The heat treatmen
Page 208 and 209: How steel is made?a 3-stage process
Page 210 and 211: Arcelor’s main steel-manufacturin
Page 212 and 213: NOTES210ANNUAL REPORT ARCELOR 2003
Page 214: Concept and realization133, avenue
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