Arcelormittal South Africa Limited · JSE:ACL
Arcelormittal South Africa — Investor Presentation (October 2011)
31 slides from Arcelormittal South Africa's investor presentation, Oct 14, 2011
Slide 1: ArcelorMittal Saldanha Works Analyst visit
ArcelorMittal Saldanha Works Analyst visit 14 October 2011
Slide 2: History of Saldanha Works
History of Saldanha Works • Nov 1995: Saldanha Steel project started 1995 (Iscor and IDC) • Jan 1996: First bursars, recruited from the West Coast, 1996 sent to Newcastle for training • Sep 1996: First steel column erected 1997 • Aug 1997: Power available from Eskom • 14 Jun 1998: First steel produc
Slide 3: Saldanha Steel Works
“<= ArcelorMittal Saldanha Steel Works COREX DR-Plant Steel shop * RHF Mills Steel shop RHF.’ ee oe oe
Slide 4: Process configuration
Process configuration Integrated process flow 3
Slide 5: Raw Material and Energy Impact on Cost Analysis (2011 Budget)
Raw Material and Energy Impact on Cost Analysis (2011 Budget) 4
Slide 6: Strategic focus
Strategic focus Immediate focus Medium Term focus Long term focus 2010 2011 2012 2013 2014 2015 2016 2017 Stability Energy & Raw Materials Increase Plant Throughput Primary Bottleneck : Corex / Midrex supply of FE units Restore Basic Conditions (WCM + 5S) • Full Implementation of Energy • Increase t
Slide 7: Operations overview
Operations overview 10/24/2011 Author 6
Slide 8: Safety Review 2011 YTD
Safety Review 2011 YTD WHAT WENT WELL WHAT WENT WRONG 1. LTIFR of 0.4 cf budget 1.31 1. 1 x LTI (Blue Cranes) 2. FPS Audit outcome: Level 5 on all standards 2. 23 x MAI (3 were RWDC) 3. LTI-free hours: 3. 84 x FAI • 3 million – 2 June 2011 – Record • 1 million - 30 Aug 2011 4. Substance abuse remain
Slide 9: Safety performance
Safety performance TIFR Contractors 0.668 AMSA Saldanha 0.000 2011 Target: 1.31 Combined 0.387 8
Slide 10: Liquid steel production
Liquid steel production SpecialGroup = Production Ton History ArcelorMittal KPINumber | KPI Description Unit 166] SAL-CONARC-Liquid steel tapped ton/mnth KPI Definition | Tons tapped 414422.00] 08.166.10 sosasisa sms soacras 450855 sesras0 | 90,000.00 S = a Tasers a , severe sera30 40,000.00 — a = 3
Slide 11: % Thin gauge production < 1.6mm
% Thin gauge production < 1.6mm 10
Slide 12: Quality– Prime Ratio (%)
Quality– Prime Ratio (%) Focus Areas: •Plant stability •Skin laminations •Edge ripples 11
Slide 13: Business Improvement Results Saldanha
Business Improvement Results Saldanha *$ 7 - - ' # - . . / * 0 1 + . 2 3 0 4 . . / * 0 1 + . 2 3 0 4 . . / * 0 1 + ! 5 & !5 5 & ! - ! 5 & ! 5 5 & 6 &- -! 5 -& ! &- !5 !5 ! -5 & -! ! & ! 5 !! 5 !! 5 ! 5! - - - ! !! ! & &- & ! 5 & -! ! 5 !5 ! "#$ # % & ' #()*+ , 12
Slide 14: WCM Pillars
WCM Pillars Management Infrastructure 13
Slide 15: WCM Vision
“<= ArcelorMittal WCM Vision WCM Vision Profitability through plant stability £ + Core Ideology Envisioned future - aR 5 Reliable Equipment Increased profitability by applying the . . 2 principles of 5S and WCM through (e2Gng) cS SUS etme ae aa eT CATT OE increased production of quality product ¥ ¥
Slide 16: WCM
ArcelorMittal wo = Bee 24 10:09 aN
Slide 17: WCM Before and After
WCM BEFORE AFTER 16
Slide 18: WCM Before and After
WCM BEFORE AFTER 17
Slide 19: Raw material volumes
Raw material volumes DolomiteLimestone 5.3% 3.5% Pellets 17.9% Iron ore 46.9% Coke 3.9% Coal 22.4% Fe units make up 62% of raw material volume 18
Slide 20: Market
Market 10/24/2011 Author 19
Slide 21: HRC sales
HRC sales 135 128 136 108 119 48 114 116 137 106 67 69 122 80 104 100 105 91 174 87 158 164 156 150 140 152 139 132 129 118 121 101 94 92 64 70 62 46 20
Slide 22: Export sales per geographic region
Export sales per geographic region (2008 - 2009) 21
Slide 23: Geographic distribution of Saldanha export sales 2007 & 2008
Geographic distribution of Saldanha export sales 2007 & 2008 1% 21% 50% 38% THIN GAUGE THICK GAUGE NON PRIME / STEPDOWNS 22
Slide 24: Product
Product • Hot rolled coil Capability – Width : 900 to 1524 mm – Thickness : 1.00 to 8.00 mm. – Temper mill Thickness : 4.10 mm max. – Coil weight : 25 mt max • Overview of Material grades • Saldanha Works currently produces 3 different “chemical grades”. Two of these are very similar and 99% of mate
Slide 25: Markets and applications
Markets and applications Customers Quantity per Month Application Width Thickness DSP 30000 Cold Rolling 2.00 1000 to 1524 2.50 3.00 Domestic Market 14000 Tube and open Profile, 1.20 small quantity of CTL 1220 1.50 1225 1.90 2.40 Export Market 50000 Tube and open Profile, 1.00 (Mainly East and West
Slide 26: Looking forward
Looking forward 10/24/2011 Author 25
Slide 27: Looking forward: First priority to stabilize
Looking forward Stabilize Cost Technology External Market Base Safety Training and Retention First priority to stabilize Maintenance Suppliers / Business Partners First priority to stabilize operation 26
Slide 28: Looking forward: Ensure lowest cost base
Looking forward Stabilize Cost Technology External Market Base Export Focused Thin Strip Ensure lowest cost base Optimize in incremental steps Focus on controlling cost and finding quick payback improvements 27
Slide 29: Looking forward: Use technology to open the gap
Looking forward Stabilize Cost Technology External Market Base Raw materials Energy Use technology Higher to open the gap Throughput New technology Expected increase in short term output to come from efficiency gains 28
Slide 30: Looking forward
Looking forward Stabilize Cost Technology External Market Base Local vs Export Product Range Thin focus Expected increase in future output to come from efficiency gains 29
Slide 31: Questions
Questions 10/24/2011 Author 30
ArcelorMittal South Africa — Investor Presentation (October 2011) on 6ix