Mr Wynand Louw of Computershare acting as scrutineer.

4. Integrated Annual Report 2021

4.1 The integrated annual report which incorporated the report of the directors, the audit and risk committee report, the transformation, social and ethics committee report as well as the environmental, social and governance report (“ESG report”) as well as the financial statements and the Chairperson’s report for the year ended 31 December 2021, were presented at the meeting and taken as read.

5. Opening Statement

5.1 The Chairperson addressed the meeting and highlighted the following key issues relevant to the business affairs of the Company:

5.1.1 ▪ The Chairperson announced the end of his term as well as that of Ms Mnxasana as directors of the Board. In addition to them resigning as directors, Mr Makwana vacated his role as the Chairman of the Board and Ms Mnxasana vacated her role as the Chairperson of the Audit and Risk committee (ARC) as well as Chairperson of the Human Resources, Remuneration and Nominations committee (HRRN). Three directors, namely Prof Mohale, Mr Thebyane and Ms Earp would be recommended to the shareholders for appointment as directors of the Board. Subject to the approval of the election, Prof Mohale would serve as the Chairperson of the Board, Mr Thebyane would serve as the Chairperson of the HRRN committee, and Ms Earp would serve as the Chairperson of the ARC.

• It was important to recognise the changing landscape of the steel industry in order to secure the long-term sustainability of the Company. On the path to securing long-term sustainability, certain challenges had to be navigated, one of which being the influx of Chinese steel imports into South Africa. This prompted the Company to engage with Government on the challenges presented in this regard. Protection was provided by Government for hot rolled coil and the construction steel sectors. The Competition Commission was engaged on allegations of uncompetitive conduct and amicable agreements were reached. South Africa’s requirement for a license to trade as presented by the Broad-Based Black Economic Empowerment (B-BBEE) Act brought about the B-BBEE transaction in which Likamva Resources acquired a 17% shareholding in the Company. This included the addition of a community-based trust, and employee share ownership scheme, which contributed to further enhancing the B-BBEE credentials.
• The Company faced operational challenges. Throughout these challenges, the Company reported significant losses. The executive team’s efforts, led by the CEO Mr Verster, in steering the Company towards recovery were commended.
• In the 2021 financial year the Company recorded its strongest EBITDA since 2008 as well as a profit of ZAR 6.8 billion.
• A value plan had been introduced to ensure the long-term sustainability of the Company.