Arcelormittal Sa · EURONEXT:MT
Arcelormittal Sa — Investor Day (September 2011)
24 slides from Arcelormittal Sa's investor day presentation, Sep 23, 2011
Slide 1: Core strength, sustainable growth
= ArcelorMittal Core strength, sustainable growth Lakshmi Mittal, Chairman and CEO Investor Day- 23 September 2011
Slide 2: Disclaimer
> Disclaimer ArcelorMittal Forward-Looking Statements This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regardingplans, objectives an
Slide 3: Today's agenda
=~ Today's agenda ArcelorMittal * Outlook and strategy — Core strength, sustainable growth — Implementing savings, executing growth * Mining — Building a World-Class Mining business — Mining: a commercial approach * Value-added leadership — ArcelorMittal Research and Development — Leadership in the
Slide 4: Relentless focus on safety
= Relentless focus on safety ArcelorMittal + Employeesare our most valuable asset + Safety is our number one priority + Wehave shown steady improvementin our performance butwe recognise there is still further improvementto be made: Annual Health and Safety* (mining and steel) — Executive remuneratio
Slide 5: Core strengths
> Core strengths ArcelorMittal * High quality core assets — Utilising 78% of our capacity ArcelorMittal deliveredan average EBITDA/tonne of >$150 in Q2'11 - ~40% of “steel EBITDA’ in 1H2011 was generated from production outside Europe/North America « Industry leading automotive steel franchise — 40%
Slide 6: Today's market conditions
as “_ Today's market conditions: ArcelorMittal * Demand (orders) not showing signs of real demand deterioration - Raw material prices are stable * Steel prices are stable in most markets and rising in the US US HRC prices (USSIst) 1200 Price correction after eco ‘Qt'ttrestock rally Each US price cor
Slide 7: Scrap and raw material prices remain stable
= Scrap and raw material prices remain stable ArcelorMittal + US Heavy Melt Scrap price (US$/t) remains stable 700.0 Aug-07 May-10 Scrap prices indicate demand stability rather than collapse Source: Bloomberg 6
Slide 8: Inventory levels are supportive
Inventory levels are supportive Europe Service Centre Inventories (Mn MT) ArcelorMittal US Service Centre Total Steel Inventories (Mn MT) sh ch J 2 SJ Sy ~ nN SKE LEP LELSES China Inventories in 25 Major Cities (Mn MT) i oli | | S\ Sh iS © so Soo YS YX SFE L PPE KS ee ee ee, s s s Inventory levels a
Slide 9: Currency could be a support
“_ Currency could be a support ArcelorMittal * Steel is a US$ commodity, weaker local currencies reduce local costs in $ terms Brazilian Real : US Dollar South African Rand : US Dollar 85 20 19 18 17 16 15 23 233 § 8 2 8 2 BS 2 8 8 Mexican Peso : US Dollar EUR: US Dollar 140 135 130 125 120 15 110 A
Slide 10: Destocking capacity is limited
=~ Destocking capacity is limited ArcelorMittal - US inventories today are 25% below 2008 peak level; crisis low was 50% below peak level... ArcelorMittal Group Shipments of Finished Steel (0004) US Service Centre Inventories" (Kf) mm US Senice Conte muntses (tomes) —t-Inentan/ Shipments MoS) sm ‘Co
Slide 11: Lead indicators do suggest a slowdown
=~ Lead indicators do suggest a slowdown arcelormittal Regional leading indicators (PMI data) points to decelerating global economy — Consumer confidence under pressure Expensien — Risks ofrecession have increasedbut low-growth scenario still more likely" Contraction - Sustainable pick-up in constru
Slide 12: Accelerating plans to improve EBITDA
Accelerating plans to improve EBITDA arcelormittal * $1.2bn Management gains: we exited 2Q’11 at $3.6bn of gains; target remains $4.8bn by end 2012 but we will look to achieve this as quickly as possible $2.2bn of additional EBITDA capability by end 2012 $1bn Asset optimisation plan: focus of maximi
Slide 13: Sustainable growth
=~ Sustainable growth ArcelorMittal
Slide 14: China's steel demand following precedents
China’s steel demand following precedents * Economic development is characterised by strong, steel demand growth — China is no different Cumulative crude steel apparent consumption (kg/capita) steel demand growth is sustainable near term Note: Between 1900 and 1949 crude steel production per canta a
Slide 15: China steel demand growth will continue
=~ China steel demand growth will continue arcetormittal * China steel growth shifting from East/North to South/Southwest Apparent steel consumption (million tonnes) 0 2008 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 DOE 2019 20 Demand projections China’s steel demand growt
Slide 16: China will keep global raw material supplies tight
=~ China will keep global raw material supplies tight — ArcelorMittal * China steel demand growth is expected to continue to absorb new supply of iron ore, keeping global supply/demand tight Global iron ore supply/demand outlook (Mn tonnes) +3300 World iron Ore Demand World Iron Ore Production : 8 &
Slide 17: But it's not just a China story
=~ But it’s not just a China story ArcelorMittal * Outside China there is significant, broad-based growth in steel consumption Developing world ex-China: + Over 4 billion people - Lange populations in India, MENA, CIS, Brazil, paris of SE Asia + Many of these countries are well engaged on the Path o
Slide 18: We are exposed to growth engines
Average real GDP Growth by decade (%) ee: 24s we oa a 25 China @emerging Developed 0% of AM “Steel EBI Source: ArcelorMitial Corporate Strategyanalysis, 0.7" 4 62 Total Asia . 4 o excl. Japan currently generated from product =~ We are exposed to growth engines ArcelorMittal * Over 1/3 of our current
Slide 19: High capex will constrain supply growth
=~ High capex will constrain supply growth — arcelormittal ¢ Returns on greenfield steel capex are unattractive Typical capex per tonne for HRC (USS) 1400 - Capacity growth in developed world constrained by 1200 environmental considerations 1000 - BeyondChina, capacity growth in 800 developingworldi
Slide 20: Mining represents a key growth engine
=~ Mining represents a key growth engine —rcelormittal - Ourmining segment (based on marketable ArcelorMittal iron ore production growth plan (kt) tonnes only) represents 25% of current EBITDA ‘0000 =~ isti i “ - sCostpustomage Mariel tonnage — Existingmargins on our“marketable”iron ore s0000 -- are
Slide 21: While maintaining our core growth plans
> While maintaining our core growth plans arcelormittal * We continue to invest aggressively in our Mining assets Main projects Status - AMMCc (Canada) - increase concentrator capacity by 8mt pa (16 to 24mtpa) Completion expected in 2013 - Andrade Mines (Brazil) - iron ore expansion to 3.6mt pa + Co
Slide 22: Conclusions
=~ Conclusions ArcelorMittal
Slide 23: Core strength, sustainable growth
=~ Core strength, sustainable growth ArcelorMittal + Weare profitable: in 2Q’11 we generated EBITDA >$150/t on annualised shipments of 89Mt (~75% of capacity) We are diversified: 25% of EBITDA from “marketable” iron ore and coal; ~40% of remaining “steel” EBITDA generated from production outside Nor
Slide 24: Contacts
Contacts Daniel Fairclough — Global Head Investor Relations daniel fairclough@arcelormittal.com +44 207 543 1105 Hetal Patel - UK/European Investor Relations hetal patel@arcelormittal. com +44 207 543 1128 Maureen Baker — Fixed Income/Debt Investor Relations maureen baker@arcelormittal. com +331 719