Arcelormittal Sa · EURONEXT:MT
Arcelormittal Sa — Investor Day (September 2011)
23 slides from Arcelormittal Sa's investor day presentation, Sep 23, 2011
Slide 1: Implementing savings, executing growth
“_< ArcelorMittal Implementing savings, executing growth Aditya Mittal, CFO and GMB Member Flat Carbon Europe 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 A
Slide 4: Implementing savings, executing growth
Implementing savings, executing growth rcelormittal ArcelorMittal continues to generate good levels of EBITDA, despite relatively low operating rates But... if 2012 were to see recession, EBITDA should be higher than 2009 largely due to Management gains, and our expanding mining business New sustain
Slide 5: Strategic priorities remain in place
=~ Strategic priorities remain in place ArcelorMittal - Preserve balance sheet strength * Maintain and improve cost-competitive position * Exploit our mining resource base * Execute organic growth opportunities in emerging markets Our strategy remains consistent 4
Slide 6: EBITDA drivers
EBITDA drivers ArcelorMittal
Slide 7: Near term EBITDA outlook solid
=~ Near term EBITDA outlook solid ArcelorMittal * Q3’11 EBITDA is still expected to be approximately $2.4bn - $2.8bn * 2H’11 EBITDA is expected to be stronger than 2H’10 Group EBITDA (US$mn) — Steel shipments are expected to be soe YW above 2H 2010 levels ron i Y, ase = 10% volume growth for iron or
Slide 8: 2012 supported by management gains
> 2012 supported by management gains _arcelormittal * Management gains will contribute more to EBITDA than it did in 2009 Contribution of management gains to EBITDA (USSbn) $8 ee 8 8 $ Management gains will have a significantly higher contribution to EBITDA in 2012 than in 2009 This assumes that we
Slide 9: 2012 supported by Asset Optimisation
“_ 2012 supported by Asset Optimisation ArcelorMittal * Focus on “Core” assets will ensure lowest cost footprint achieved and yield significant savings; target $1bn by end-2012 Expected Contribution of Asset Optimisation Plan to EBITDA (US$mn) 4,200 4,000 200 600 Asset Optimisation Plan will further
Slide 10: 2012 supported by Mining
“~~ 2012 supported by Mining ArcelorMittal « Mining segment generated $656mn EBITDA in 2009 as volumes and prices fell * 2012 “marketable” iron ore volumes expected to be ~40% above 2009 levels * So even under 2009 price conditions the mining segment should generate over $1.1bn of EBITDA in 2012 Min
Slide 11: Balance sheet drivers
=~ Balance sheet drivers ArcelorMittal
Slide 12: Net debt driven by working capital
=~ Net debt driven by working capital ArcelorMittal * Increase in net debt post-crisis largely due to investment in working capital mmm Net debt = Working Capial 30,000 1010 2010 3010 4010 tort 2011 Over the past 6 quarters we invested $7.2bn in working capital "1
Slide 13: "Crisis" scenarios typically release working capital
“Crisis” scenarios typically release working capital ArcelorMittal * Working capital driven largely by inventories Balance sheet inventory (USS billion) +/-$1.7bn Impact on WC +/-$2.0bn Impact on WC e challenging the environment the more significant the likely working capital release
Slide 14: Net debt scenarios
=~ Net debt scenarios ArcelorMittal « We expect to achieve net debt target of <$22.5bn by mid 2012 The following financial metrics are for illustrative purposes only and should not be construed as guidance Economic Scesarioa EBITDA. Working Capital Net Debt NDEBITDA. Low growth? Greater than 2011 Ne
Slide 15: Funding diversified and maturities lengthened
> Funding diversified and maturities lengthened ArcelorMittal Debt Maturity breakdown 30 September 2008 Debt Maturity Profile (Sbn) - 30 September 2008 Other, 134 Paper. 0 Total gross debt of $38.6bn mr, 21% Debt Maturity breakdown 30 June 2011 oihe,106 PFE ae, 7 Total gross debt of $28.2bn 3% Avera
Slide 16: Liquidity is significant and diversified
Liquidity is significant and diversified =~ ArcelorMittal + We have $12.3bn of liquidity at end 2Q 2011 Liquidity position @30 June, 2011 (USSbn) 23 Ueesed ces iae 3a cach : Eneiraieat Commercial paper ‘Short ton 2 Others ak2OG Debt dee ia 2011 We have no conce! - Wehavenosignificant counterparty ri
Slide 17: Balance sheet highlights
== Balance sheet highlights ArcelorMittal * We expect net debt to be at or below $22.5bn by mid-2012 in various economic scenarios * Maturity profile is manageable with no significant debt repayments due until 2013 * Our liquidity position is healthy and well diversified both by institution, geograp
Slide 18: Sustainable return drivers
=~ Sustainable return drivers ArcelorMittal
Slide 19: Asset Optimisation Plan
=~ Asset Optimisation Plan ArcelorMittal * Target: Add $1bn to sustainable EBITDA by end 2012 * Through optimising our production footprint — To meet trend demand: Maximise production (100% utilisation) at our lowest-cost facilities in a stable way — This will increase productivity at these core fac
Slide 20: Prioritise funding of Core capex
Prioritise funding of Core capex « ArcelorMittal Mines Canada (AMMC): additional 9Mt* of iron ore capacity due 1H’13 with cash operating costs of <$40/t; capex $1.3bn (of which ~15% spent end-11) Liberia: phase 2 advanced study; 11Mt of iron ore capacity due 2015 with cash operating costs of <$30/t;
Slide 21: Conclusions
=~ Conclusions ArcelorMittal
Slide 22: Implementing savings, executing growth
Implementing savings, executing growth arcelormittal We reconfirm our guidance for Q3’11 (EBITDA of $2.4-2.8bn) and reiterate that 2H’11 is expected to deliver higher EBITDA than 2H’10 Continued improvement through management gains and the new $1bn Asset Optimisation Plan We expect net debt to retur
Slide 23: 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