Arcelormittal Sa · EURONEXT:MT
Arcelormittal Sa — IPO Roadshow (March 2016)
14 slides from Arcelormittal Sa's IPO roadshow presentation, Mar 10, 2016
Slide 1: Extraordinary General Meeting
Extraordinary General Meeting Michel Wurth, member of ArcelorMittal Board of Directors Luxembourg, 10 March 2016 FREE WRITING PROSPECTUS Filed pursuant to Rule 433 Registration Statement No. 333-202409
Slide 2: General disclaimer
General disclaimer For readers in the European Economic Area This presentation does not constitute an offer to sell, or the solicitation of an offer to buy or subscribe for, any securities of ArcelorMittal within the meaning of Luxembourg law and/or the laws of any other member state of the European
Slide 3: Forward-looking statements
Forward-looking statements This presentation may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with re
Slide 4: Overview
Overview New equity capital ($3bn by way of rights issue) together with Gestamp sales proceeds ($1bn) represent major milestones along ArcelorMittal’s journey to reduce net debt ($10.1bn since end 2012) Strengthened balance sheet will cement ArcelorMittal’s position as the global steel industry lead
Slide 5: Steel industry leader: Global presence, industry leading product portfolio and continuous investment
Steel industry leader: Global presence, industry leading product portfolio and continuous investment World’s leading steel and mining company Developed markets are core Low cost assets…. well positioned on global cost curve Optimized asset base in Europe… … next comes the US footprint optimization P
Slide 6: Cost competitive assets capable of generating positive FCF through the cycle
Cost competitive assets capable of generating positive FCF through the cycle Net Debt Reduced by $6.1bn since year end 2012¹; reduction is $10.1bn post rights issue and Gestamp sale Interest expense reduced by $0.6bn since 2012 Portfolio Optimization $2.5bn² of proceeds from non-core asset disposals
Slide 7: Positive industry signals
Positive industry signals Supply side reforms in China Capacity is finally exiting in 2015 New “Industry Structure Reform Fund” to provide social support while capacity is restructured Supply side reform will continue given unsustainability Steel price recovery Stabilization of price environment bri
Slide 8: 2015 performance highlights
EBITDA: FY’15 EBITDA of $5.2bn vs. $7.2bn in FY’14 Steel performance: primarily impacted by low steel selling prices Mining costs performance exceeding targets: FY’15 unit cash costs reduced by 20% YoY; exceeding the 15% target for 2015 Net loss¹ driven by impairments, exceptional charges and non-ca
Slide 9: Further reduction in cash requirements expected in 2016
Further reduction in cash requirements expected in 2016 $1bn reduction in cash requirements expected in 2016 vs. 2015: Capex: $0.3bn saving1 Cash taxes: $0.1bn saving Dividend suspended: $0.4bn saving Cash interest: $0.2bn saving2 1 At spot FX rates 2 From net debt reduction and lower cash interest
Slide 10: Gestamp sale unlocks c.$1bn of value
Gestamp sale unlocks c.$1bn of value Sale of 35% stake in Gestamp for €875 million to the majority shareholder, the Riberas family Gestamp is a privately held entity involved in stamping, assembly and welded blanks for automotive original equipment manufacturers (OEMs) The sale of our stake in Gesta
Slide 11: Actions to right-size the balance sheet
Actions to right-size the balance sheet Near-term actions to reduce net debt¹ to <$12bn Net debt / EBITDA 2015A Cash on balance sheet as of 2015YE Unutilized credit lines Capital raise Liquidity remains strong Gestamp proceeds 1 Net long-term debt, plus short term debt, less cash and cash equivalent
Slide 12: Action 2020 plan to achieve significant improvement
“Action 2020” plan to achieve significant improvement1 (EBITDA/T) These statements are forward-looking, are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based upo
Slide 13: Summary
Summary Capital raise and Gestamp stake sale represent major milestones in ArcelorMittal’s journey to reduce net debt ($10.1bn since end 2012) Pro forma net debt at 31/12/15 reduced to <$12bn / 2.2x 2015 EBITDA. Company will restart dividend distribution once ND/EBITDA is <2x Strengthened balance sh
Slide 14: Indicative terms of the proposed rights offering
Indicative terms of the proposed rights offering Structure of the offering Capital increase with preferential subscription rights (structured as a non-statutory rights offering) to ArcelorMittal shareholders Oversubscription privilege to ArcelorMittal shareholders Rump placement for remaining unsubs