3 rd Steel & Metals Fieldtrip 1-3 October 2012

Transcription

1 3 rd Steel & Metals Fieldtrip 1-3 October 2012 Hetal Patel, General Manager Investor Relations Valérie Mella, Investor Relations Munich, 1 st October 2012

2 Disclaimer 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 regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words believe, expect, anticipate, target or similar expressions. Although ArcelorMittal s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the SEC ) made or to be made by ArcelorMittal, including ArcelorMittal s Annual Report on Form 20-F for the year ended December 31, 2011 filed with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise. 1

3 Agenda Overview Market outlook Balance sheet 2

4 Safety Quarterly Health & Safety frequency rate* for mining & steel Governance, people, community and sustainability initiatives ArcelorMittal published its 2011 corporate responsibility report titled Responsible business, sustainable growth, in May The report is aligned with the Global Reporting Initiative G3 B+ guidelines as well as the United Nations Global Compact principles Q 11 3Q 11 4Q 11 1Q 12 2Q 12 ArcelorMittal has been ranked 4th (out of 105 listed companies surveyed) by Transparency International for transparency in corporate reporting. The independent study assesses the disclosure programmes listed companies have in place to fight corruption and the extent to which earnings and taxes in specific countries are made public. Health and safety performance improved with Lost Time Injury Frequency Rate of 0.8x in 2Q 12. Improvements in performance primarily in Mining and Distribution Solutions segments. All other segments performance remained relatively constant q-o-q. ArcelorMittal has launched icare, a portfolio of electrical steel solutions for electric vehicle market. This product range will help carmakers deliver lower CO2 emissions and improve fuel consumption for hybrid vehicles while contributing to increased power density from electric motors. Safety remains the No1 priority for ArcelorMittal * IISI-standard: Fr = Lost Time Injuries per worked hours; based on own personnel and contractors 3

5 Overview Industry leader Largest steel producers World s No1 steel producer (~ 6% of world crude steel output) Broad range of high-quality finished and semi-finished carbon steel products; Outstanding distribution networks 4th largest iron ore producer; low 2nd-quartile cash cost for iron ore; World-class iron ore reserve and resource Global presence unrivalled knowledge base and benchmarking ArcelorMittal Hebei I&S Angang Group Baosteelel Wuhan Posco Nippon Steelel Jiangsu Shagang Largest iron ore producers Shougang JFE Shandong I&S Tata Steelel US Steelel Gerdau Bohai I&S ThyssenKrupp Nucor Evraz Steel companies Maanshan Riva Vale Rio Tinto BHP ArcelorMittal Fortesque Anglo Metinvest Evraz 4

6 Overview Industry leader Geographically diversified ArcelorMittal is the leader in all major global steel markets, including automotive, construction, household appliances and packaging leading R&D and technology, as well as sizeable captive supplies of raw materials and distribution networks 2011 EBITDA of US$10.1bn; only ~40% generated from steel business in Europe and North America Balanced portfolio of costcompetitive assets in both developed and developing markets (No1: EU; North America; Africa, LatAm, CIS) Steel shipments by geography Long Carbon North America 5% Long Carbon South America 7% Flat Carbon Europe 32% Mining 31% AACIS 13% Long Carbon Europe 15% Long South America 10% Others 1% Africa 5% Flat Carbon South America 6% EBITDA split by geography Flat South America 5% Asia CIS 9% Flat Carbon North America 20% Flat North America 17% Long Europe 5% Distribution 3% Flat Europe 15% Long North America 1% 5

7 Overview Industry leader Geographically diversified Cost leadership Strong track record of management gains Since 2008, achieved $4.4bn of gains by 2Q12; largely SG&A, fixed costs and operational improvements Fixed cost per tonne maintained at 2008 levels despite significantly lower volumes leverage to volume recovery Asset optimisation: Focus on core assets will ensure lowest cost footprint achieved and yield significant savings; target $1bn by end Management gains plan ($bn annualized) Q Q08 Target of $4.8bn by end of Q Q09 2Q Q09 3Q Q09 4Q Q09 1Q Q10 2Q Q10 3Q Q10 Asset optimisation plan 1,200 1, Q Q10 1Q Q11 2Q Q11 3Q Q11 4Q Q11 1Q Q12 2Q Q F

8 Overview Industry leader Geographically diversified Cost leadership No 1 in automotive steel Global automotive manufacturing presence through own facilities and JVs Global distribution network Unique product offerings to meet OEMs demand for safety, fuel economy and reduced CO2 emission (S-in Motion 20% weight reduction) Relative stability of margin: 20-30% of average selling price is attributable to the value added nature of the product 40% market share in our core markets Strong and consistent investment in R&D ArcelorMittal auto global market share ROW 82% Europe 59% AM global market share 18% 2011 auto shipment by geography NAFTA 34% South America 6% South Africa 1% 7

9 Overview Industry leader Iron growth plan Geographically diversified Cost leadership No 1 in automotive steel Fast-growing mining assets Operational efficiencies 5 Brazil / Canada 11 Liberia Key management bench strength to execute on the development options we have via our extensive reserve base and scalable infrastructure already in place Growth plan to reach 84mt by 2015 with key growth projects in Canada and Liberia underway Competitive position in terms of cost and product quality We are investing in our lower cost operations Our projects have attractive returns based on conservative long-term prices with rapid paybacks on these investments 0 Iron ore production and operating unit cost (Index base 100=2011)* plan Iron ore production Operating unit cost * Excluding planned greenfield projects (such as Baffinland) and investment in expanding the pellet plant at AMMC which has not yet been committed to. Note: Operating unit costs shown are on an FOB basis 8

10 Strategy remains consistent Preserve balance sheet strength Maintain & improve competitive position Exploit our mining resource base Execute organic growth opportunities ArcelorMittal is following a disciplined strategy to sustainably improve returns 9

11 Balance sheet 10

12 Balance sheet structurally improved Net debt ($billion) 32.5 Average maturity (years) Q Q Q Q 2012 Liquidity ($billion) Bank debt as component of total debt (%) % 10% 3Q Q Q Q 2012 Balance sheet fundamentals improved 11

13 Working capital focus OWCR and rotation days* (USD billion) days Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 Working capital (USDbn) - LHS Rotation day - RHS Working capital focus led to a reduction in rotation days to 61 rotation days at end 2Q 12 lean by historical standards * Rotation days are defined as days of accounts receivable plus days of inventory minus days of accounts payable. Days of accounts payable and inventory are a function of cost of goods sold. Days of accounts receivable are a function of sales. 12

14 Well within covenants Net Debt (USD billion) & Net Debt/LTM EBITDA* Ratio (x) x x 3.0x 2.5x 2.0x 1.5x Covenant apply only to liquidity lines of which zero drawn at end 2Q ` 1.0x Covenant is 3.5x Net 0.5x 0.0x Debt / Last twelve months EBITDA 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 Net Debt (USDbn) - LHS Net Debt / LTM EBITDA Net Debt / LTM EBITDA at 2.6x at end of 2Q 2012 well within 3.5x threshold * Based on last twelve months (LTM) EBITDA. 13

15 Liquidity and debt maturity profile Liquidity position at June 30, 2012 (US$ billion) 14.8 Debt maturities (US$ billion) Unused credit lines Cash & equivalent Liquidity at 30/6/12 Debt due in 2012 Commercial paper Short term debt & Others >2016 Bonds Convertibles Long term debt facility Other Commercial Paper Liquidity lines: $4bn syndicated credit facility matures 06/05/15 $6bn syndicated credit facility matures 18/03/16 $0.3bn bilateral facility matures 30/06/13 Debt maturity: Continued strong liquidity Average debt maturity 6.4 years Ratings S&P BB+, negative outlook Moody Baa3, negative outlook Fitch BBB-, negative outlook Continued strong liquidity position and average debt maturity of 6.4 years 14

16 Deleveraging focus: asset divestments Erdemir 1/4 of 25% stake sold raising $264 million cash in 1Q 12 1/6 of 25% stake tied to warrants potential for a further approximate $186 million in cash Skyline Agreed sale to Nucor of 100% of ArcelorMittal s stake in Skyline Steel s operations in NAFTA and the Caribbean for $684 million The transaction was completed in 2Q 12 Enovos Agreed sale to AXA of 23.48% interest for 330 million Transaction has now closed and initial 50% payment received in 3Q 12 with balance (+ interest) over subsequent periods Paul Wurth Agreed sale to SMS Holding of 48.1% interest for 300 million Cash proceeds will have minimal impact on net debt** Including sale of Macarthur stake, ArcelorMittal has sold $2.7bn* non-core assets since September 2011 Further disposals expected to be made in coming quarters * Includes Macarthur, Boasteel-NSC/Arcelor (BNA) Automotive, Erdemir, Skyline, Enovos and Paul Wurth. ** Paul Wurth divestment will have minimal impact on ArcelorMittal net debt as sale cash proceeds will be offset by the deconsolidation of Paul Wurth s cash balance. Paul Wurth s cash balance primarily represents customer advances held bycustomers of Paul Wurth. 15

17 Market outlook 16

18 2Q 12 apparent demand growth slowed Global Apparent Steel Consumption (ASC)* (million tonnes per month) Developing ex China China Developed US and European Apparent Steel Consumption (ASC)** (million tonnes per month) EU27 USA 15 3 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Global ASC +2.3% in 2Q 12 vs. 1Q 12 [+1.5% y-o-y] Global ASC +1.2% in 1H 12 vs. 1H 11 China ASC +2.8% in 2Q 12 vs. 1Q 12 [+0.6% y-o-y] China ASC -0.3% in 1H 12 vs. 1H 11 US ASC 0.3% in 2Q 12 vs. 1Q 12 [+12.3% y-o-y] US ASC +13.8% in 1H 12 vs. 1H 11 EU ASC +0.0% in 2Q 12 vs. 1Q 12 [-9.4% y-o-y] EU ASC -8.9% in 1H 12 vs. 1H 11 Restocking slowed in 2Q vs. 1Q; Global ASC continued to grow but at a slow rate * ArcelorMittal estimates ** AISI, Eurofer and ArcelorMittal estimates 17

19 Slowdown in global indicators Expansion GDP weighted global manufacturing PMI Global leading indicators point to a slower recovery on negative sentiment out of Europe and slower Chinese growth. US indicators still supportive but weakening. US automotive and durable goods continue to remain strong. In Northern Europe, output slows as uncertainty over eurozone debt crisis prevails despite measures taken to restore confidence. Contraction China (HSBC) Euro Area USA Global Southern Europe recession deepening as austerity measures extended, consumers cut back and construction weakens. Output in China slowed further in August despite improving credit. The PMI (HSBC) fell further to 47.8 delaying the recovery. Market conditions in US and Europe have stabilised; China is now a concern, but eurozone uncertainty remains the key risk Source: Markit and ISM; Global Manufacturing PMI is weighted average of regional PMI and combination of China HSBC and official China figures. 18

20 Developed construction generally weak US Residential permits and construction indicators (SAAR) $bn* Residential permits (millions) Residential output (RHS, billions USD) Eurozone and US construction indicators** Expansion Contraction 65 Eurozone construction PMI USA Architecural Billings Index Developed world construction at low levels Modest pickup in USA continues US residential construction recovering (from very low levels) on improving home sales and permits Private non-residential recovery has weakened: but Architectural Billings up for second straight month (<50 still contracting) to 48.7 in July from average 46.7 in 2Q 12 (50.8 average in 1Q 12) suggesting pickup delayed to 2013 In Europe, uncertainty caused by debt crisis underpins falling investment Construction PMI continues to contract German construction market supported by low unemployment and improving permits Construction markets in South to extend decline in 2012, with Spain, Greece and Portugal expected down around 10% Encouraging signs in US residential construction, but European construction remains depressed * Source: US Census Bureau ** Source: Markit and The American Institute of Architects 19

21 Chinese output weak pickup expected Q4 China Construction Indicator (Million Metre sq.) Floor Space under construction (12mma) 310 Newly Started Construction (SA, 3mma) Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Net Exports of Finished Steel (Mt per month) Jan-12 August industrial output only 9% the lowest level since However, construction indicators have rebounded, particularly newly started construction. Inflation, while up slightly in August remains low (2%) allowing further interest rate cuts aimed at stabilising output and investment. Controls on private real estate market remain mostly in place but investment in social housing has risen and starts are on target. Steel production peaked in April at new record of 739 million tonnes but has begun to fall during August at 691mmt annualised (Nov 11: 607mt). Latest indicators show production stabilising ~700mmt. China ASC grew 7.8% in 2011; Expected to grow 4.5-5%* in 2012 * ArcelorMittal estimates 20

22 Brazil to benefit from tax incentives Brazil autos sales (seasonally adjusted 000 s) 350, , , , , , , ,000 35% 30% 25% 20% 15% 10% 5% 0% Jan-08 Jul-08 Jan-09 Jul-09 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Brazil (flat products) import intensity (share of imports in apparent steel consumption) Jan-10 Jul-10 Jan-11 Jul-11 Government measure to stimulate economy Brazilian auto incentives in form of reduction of tax on industrial products has been extended to Oct 2012 Import tax tariff increase the International Trade Affair Chamber - CAMEX, approved new import duties for 10 steel products, including HRC, to increase from 12 to 25% implementation expected to be effective within 30 days, after approval from the Mercosul Countries Increased tariff will impact ~65% of AM domestic HRC sales Removal of state tax incentives The abolition of VAT rebate on imports is valid from all products (with a net impact of 8-9%) The end of state tax incentives from certain regions like Santa Catarina effective from Jan 1, 2013 Impact of measures The end of state tax incentives and higher import duties (with a net impact of ~22%) should contribute to consolidate current pricing policy and increase shipments in the domestic market, displacing imported material Historical participation of imports ~6%-7% of consumption had risen approx 20-25% in 2010 and back to 15%-20% in 2012 Brazilian operations to benefit from government incentives 21

23 China slowdown has led to domestic price weakness and collapse of iron ore prices Spot iron ore, coking coal and scrap price (index IH 2008=100) Regional Steel price HRC ($/t) Iron Ore Coking Coal Scrap China domestic Shanghai (Inc 17% VAT) N.America FOB Midw est N.Europe domestic ex-w orks Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 European prices have stabilized; US price-premium under pressure; early signs of recovery in China Actual data as of August

24 Conclusions 23

25 In Summary Operating environment is very challenging ArcelorMittal s business model is strong Diversified steel exposure Auto industry leadership Mining development Company s focus remains on Deleveraging Cost improvement Asset optimisation progressing towards $1bn annual savings target Management gains program continues to deliver Executing low-cost growth Applying core strengths to deliver sustainable returns through the cycle 24

26 Appendix 25

27 Core strengths of ArcelorMittal Quality core assets Leader in auto Steel Consistent Strategy World-class Mining Sustainable Returns Cost Improvement Stronger Balance Sheet ArcelorMittal in a strong position to respond to evolving markets 26

28 Permanent capacity closures: Asset optimisation Asset optimisation progress to date 3Q 2011 Intention to close two blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium Legal procedures with employee representatives are ongoing 4Q 2011 Extended idling of electric arc furnace in Madrid Restructuring costs at certain other Spanish, Czech Republic and AMDS operations 1Q 2012 Extended idling of electric arc furnace and continuous caster at the Schifflange site (Luxembourg) Further optimisation in Poland and Spain 2Q 2012 Restructuring costs associated with project to close two blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium and certain AMDS operations Continued progress on Asset Optimisation Plan 27

29 Inventory levels have stabilised Europe Service Centre Inventories (000 MT) Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Brazil Service Centre Inventories (000 MT) 1,400 1,300 1,200 1,100 1, Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 EU (EASSC) Months Supply Jul-11 Jan-12 Flat stocks at service centres Months of supply Jul-10 Jan-11 Jul-11 Jan US Service Centre Total Steel Inventories (000 MT) Jan-07 0 Jan-07 Jul-07 Jul-07 Jan-08 Flat Jan-08 Jul-08 Jul-08 Jan-09 Jan-09 Long Jul-09 Jul-09 Jan-10 Jan-10 Jul-10 Jul-10 Jan-11 Jan-11 USA (MSCI) Months Supply Following a period of re-stocking in 1Q 12 inventories have stabilised during 2Q 12 Jul-11 China inventories in 25 Major Cities (Mn MT) Jul-11 Jan-12 Jan-12 Jul-12 Jul

30 Global apparent steel consumption + 3.7% YoY RoW: +3.5 to 4.5% YoY + 9.5% YoY + 5.8% YoY NAFTA: +7 to 8% YoY EU27: -3 to -5% YoY + 7.7% YoY China: +4.5 to 5% YoY Apparent steel consumption growth of +6.3% in 2011; we estimate growth of % in

31 Financial Results and Guidance 30

32 EBITDA bridge from 1Q 12 to 2Q 12 ($million) Positive volume in mining offset by weaker volumes in steel division Positive price/cost impact in steel EBITDA increased by 24.2% in 2Q 12 v 1Q 12 primarily due to a positive price/cost impact in steel * Others primarily represents gains from Skyline divestment, offset by one time pension benefit curtailment gain in Dofasco in 1Q 12, DDH income and forex (net impact on revenue and costs) 31

33 Free Cash flow ($million) Positive free cash flow primarily driven by working capital release * Others include: $0.3 billion Skyline gain and $0.1 billion DDH income 32

34 Outlook and guidance (at 2Q 12 results briefing in July) Steel: - In the absence of an economic recovery, shipments in 2H 2012 are expected to follow the normal seasonal pattern - Group EBITDA per tonne for the 2H 2012 is expected to be similar to the underlying 1H 2012 level* Mining: - FY 2012 own iron ore shipments are expected to increase by approximately 10% over 2011 levels Capex: - Continued focus on core growth capex (mining) - FY 2012 capex expected to be ~$4.5 billion Debt: - A further reduction in net debt is targeted by end 2012 but will depend on further divestments - Consistent with stated objective to retain investment grade credit rating EBITDA per tonne for the 2H 2012 is expected to be similar to the underlying 1H 2012 level * 1H 2012 includes one-time pension benefit curtailment gain in Dofasco of $241 million and non-cash effect from divestment proceeds from the sale of Skyline of $339 million 33

35 China 34

36 China s steel demand following precedents Economic development is characterised by strong, early phase steel demand growth China is no different Cumulative crude steel apparent consumption (kg/capita) Germany USA France S. Korea China China s steel demand growth is sustainable near term Note: Between 1900 and 1949 crude steel production per capita as approximation for demand as no data available Sources: WSA for crude steel ASC; Global Insight and UN Data statistics for population; ArcelorMittal Corporate Strategy team analysis 35

37 Steel demand growth rates in China have trended down China annual growth rates of GDP and ASC (apparent crude steel consumption), (%) The announced slowing of China s GDP growth rate is consistent with 12th 5-Year Plan Ratio ASC/GDP Growth (LHS) ASC growth (RHS) Real GDP growth (RHS) % 12.7% 14.2% 9.6% 9.2% 10.3% 9.2%* % 7.0% 7.5%* / e 2012f 0 11th plan th plan f China s steel demand growth have trended down 36 Source: Global Insight, MIIT, ArcelorMittal Corporate Strategy team analysis

38 China still has some way to go on its infrastructure development path Key development parameters China vs USA USA, 2008 China, 2008 China, 2011 Absolute levels Per capita/per land area Urban residential floor space (billion m2) Railway (thousand km) Urban residential floor 16 space (m2 per capita) Equal to 30, 33, 19 m 2 per urban residential Railway (km per 1000 sq km) Subway (thousand km) Subway per 1000 capita (m) Total road (thousand km) Total road (km per 1000 sq km) Airport (units) * Airport transport passenger carried (bln) * Airport of USA is for paved runways > 1524 to 2437 m Sources: China National Bureau of Statistics; Macquarie Research, ArcelorMittal Corporate Strategy 37

39 China demand growth remains solid Steel consumption per capita in 2011 (kg) Western China (288 kg) Central China (475 kg) Coastal China (629kg) Development and growth potential Population migration Solid Chinese steel demand Sources: WSA, SBB and ArcelorMittal estimates 38

40 China will keep global raw material supplies tight 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) Iron Ore Demand/Produ uction World Iron Ore Demand World Iron Ore Production Supply/Demand projections Iron ore supply forecast to keep pace with demand, with no significant excess Source: ArcelorMittal Corporate Strategy 39

41 But it s not just a China story Outside China there is significant, broad-based growth in steel consumption Developing world ex-china: Over 4 billion people Large populations in India, MENA, CIS, Brazil, parts of SE Asia Many of these countries are well engaged on the path of industrialisation and urbanization growth Over 400m tonnes steel consumption 5.6% CAGR Crude steel consumption per capita 2010 (kg) India 102 Other China Developed developing world World* Developed world: Ca. 1bn people Low population growth Post-industrial service based economies Declining steel consumption We expect continued growth in steel consumption in the developing world * US, Canada, EU-15, Japan, Korea, Taiwan, Oceania; Sources: WSA, ArcelorMittal Corporate Strategy analysis 40

42 Despite robust China production; net exports remain stable China crude steel production (annualised Million tonnes) Chinese inventories at mills, steel production and net exports (Mt/mth) Production fell 15% as economy slowed in 2H Steel inventory (RHS) Finished steel production (LHS) Net exports (RHS) Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 The Chinese steel industry is exhibiting production discipline 41

43 Mining 42

44 Mining business portfolio Key assets and projects Canada Baffinland 70% Bosnia Iron Ore 51% Ukraine Iron Ore 95% Russian Coal 98.3% USA Iron Ore Minorca 100% Hibbing 62%* Non ferrous mine Iron ore mine Mexico Iron Ore Las Truchas & Volcan 100%; Pena 50%* USA Coal 100% Canada AMMC 100% Mauritania Iron Ore exploration license Liberia Iron Ore 70% Algeria Iron Ore 70% Kazakhstan Coal 8 mines 100% Indian Iron Ore & Coal exploration license Kazakhstan Iron Ore 4 mines 100% Coal mine Existing mines New projects / exploration Brazil Iron Ore 100% South Africa Manganese 50% South Africa Iron Ore** Coal of Africa 15.98% Geographically diversified mining assets * Includes share of production ** Includes purchases made under July 2010 interim agreement with Kumba (South Africa) 43

45 Extensive iron ore reserve and resource base Iron ore reserves as at December 31, 2011 Iron ore reserves and resources as at December 31, 2011 Liberia 0% Brazil 3% Mexico 8% Bosnia 1% Ukraine 8% Kazakshtan 5% USA 14% Canada 61% Total proven and probable ore reserves Millions of %Fe tonnes Measured + indicated resources Millions of %Fe tonnes Inferred resources Millions of tonnes Canada (Excluding Baffinland) 1, , , Baffinland - Canada Minorca - USA Hibbibng - USA Mexico (Excluding Pena Colorada) Pena Colorada - Mexico Brazil Liberia , Algeria Bosnia Ukraine Open Pit Ukraine Underground Kazakhstan Open Pit , Kazakhstan Underground Total 3, , , %Fe These reserves constitute the foundation of our life of mine plans including our planned growth strategy A very significant resource base that will constitute the basis for additional potential growth and ensure the sustainability of our operations Total iron ore reserves of 3.8 billion metric tonnes (1) Iron ore reserve estimates for Eastern Europe (Bosnia) and CIS (Ukraine and Kazakhstan) are reported only as aggregated proven and probable reserves as the methodology used in these countries (CIS standards) to estimate the exact degree of assurance and delimitation between the two categories cannot be fully defined. 44

46 Comparable margin to peers Mining EBITDA (US$mn) 3500 Iron Ore EBITDA margin FY2011* 80% % % % 500 0% Producer 1 Producer 2 Producer 3 Producer 4 Producer 5 ArcelorMittal* ArcelorMittal Mining is competitive on cost and quality * Notes: ArcelorMittal EBITDA margin based on market-priced tonnes (i.e. excludes cost-plus tonnes from Revenue and EBITDA); Producers include BHP, Fortescue, Kumba, Rio Tinto and Vale. Competitor data sourced from public information and has been prepared on a comparable periodic basis. 45

47 Core mining strengths Able to leverage entrepreneurial spirit of ArcelorMittal Management Strong leadership team Significant reserve and resource base with tier 1 bias Scalable infrastructure Competitive position in terms of cost and product quality Appetite for challenging opportunities: risk/reward strategy World class project control and management Knowledge from operating in diverse political & geographical environments Core strengths support development of a world class business 46

48 Capex and Growth Plans Steel growth capex remains temporarily suspended Focus remains on core growth capex in Mining: Liberia: Phase 1 complete and running at 4MT pa; commercial ramp- up underway Andrade Mines (Brazil): Iron ore expansion to 3.5MT pa (expected completion in 4Q 2012) AMMC: Expansion from 16MT iron ore to 24MT pa by 2013 underway AMMC: Further expansion to 30MT pa iron ore under study Upgrade railway line linking mine to port in Liberia AMMC: Mont-Wright Mining Complex 1H 12 capex spend of $2.3bn; FY 2012 capex is expected to be $4.5bn 47

49 ArcelorMittal Mines Canada (AMMC): expansion underway Canadian industrial location ArcelorMittal Mines Canada overview Expansion of our Mont Wright mine at AMMC and concentrate capacity to 24Mtpa due 2013 (from 16Mtpa post operational improvements) approved Expansion capitalising on existing infrastructure, product quality and experienced workforce Wholly-owned 420-km railway infrastructure Port Cartier s pellet plant has the capacity to produce 9.3Mtpa of iron ore pellets Infrastructure capacity capable of supporting future expansion scenarios Ability to handle cape-size vessels year round and to handle 30Mtpa without significant additional capex Capex C$1.2bn for mine and concentrator plant expansion* Post expansion cash cost are forecast circa US$38/tonne Advantageously located with easy access to European and US markets AMMC capex expansion breakout Rail infrastructure 16% Port infrastructure 14% Mobile equiptment 23% 8Mt concentrator 47% AMMC expansion plan (concentrate) Million Mt Expansion to 30Mtpa under 6 study F ` Canada base Brownfield expansion Under study Strategic advantage from exclusive use of own rail and port facilities * Total scheme investment of US$2.1 billion includes investment in expanding the pellet plant which has not yet been committed ** AMMC 2013 brownfield expansion includes 1mt increase for spirals 48

50 Liberia progress Liberia greenfield progress Industrial location of mine Phase 1: DSO complete 240km rail rehabilitation completed Upgrade of Buchanan port and material handling facilities completed First direct shipping ore ( DSO ) product shipped in September 2011 Now producing at 4Mtpa rate Phase 2: 15Mtpa concentrate from 2015 Expansion to 15Mtpa requires investment in a concentrator and remains under study Atlantic Ocean 16 Guinea Sierra Leone Buchanan Railway link from Yekepa to Buchanan (240km) Liberia Yekepa Ivory Coast Liberia greenfield planned expansion (Million MT) All marketable tonnes Total project capex (Phase 1 and 2) US$2 billion Capex of US$0.7 billion by end of ` F 2015F 15 Liberia expansion on track 49

51 Potential growth beyond current plan Planned and potential iron ore growth targets (million metric tonnes) (Excluding strategic contracts) iron ore target of 84MT (excluding potential projects and strategic contracts) Potential brownfield and greenfield projects under study Base Planned efficiciency gains Planned Brownfield Planned Greenfield Potential efficiency gains Potential Brownfield Potential Greenfield Potential internal growth supported by pipeline of brownfield and greenfield projects 50

52 Beyond 2015 Baffinland project: feasibility study progressing Product: High Grade: Fe 66%, Phos 0.03, SiO2 2.4%, Al2O3 1.2% Significant and scalable resource Outstanding chemical, metallurgical and handling characteristics No washing, concentrating, jigging; crushing and screening only 75% of output to be DSP: Direct Shipping Pellet (naturally occurring lump pellet type properties) and 25% Premium Sinter Fines ore Baffin Island overview Proposed railway alignment Steensby inlet camp and proposed port Foxe Basin Mary River mine site Baffin Island Baffin Bay Commercial Strategy: Build customer base in Atlantic and Pacific growth markets Optimise customer and market mix based on logistics and value in use for stable long term demand Price products to reflect full value in use premia Steensby Rotterdam = 3100 nautical miles Acquisition of Baffinland demonstrates ArcelorMittal s commitment to building a world-class mining business 51

53 Coal business Key assets and projects for coal business Coal mine USA Coal 100% Russian Coal 100% Existing mines New projects Kazakhstan Coal 8 mines 100% Coal reserves and resources as at December 31, 2011 Total proven and probable reserves Millions of tonnes Wet recoverable million tonnes Measured + indicated resources ROM millions of tonnes Wet recoverable million tonnes Inferred resources Millions of tonnes Wet recoverable million tonnes Princeton - USA Kazakhstan Kuzbass - Russia Total Coal of Africa 15.98% interest Indian Iron Ore & Steam Coal Coal expansion 2015 (Mt) ` F Geographically diversified 52

54 Building a world-class mining business Phase 1 Phase 2 Commercial: developing product and customer base Commercial: supplier of choice Growth: Brownfield development; leveraging infrastructure Growth: Greenfield construction; brownfield options; M&A? 84Mt? Iron ore 54Mt 11Mt 44Mt 6Mt Coking coal 8Mt Strategy: leverage competencies; potential diversification Future of ArcelorMittal Mining is not limited by geography or commodity Figures shown for own iron ore and coal production excluding strategic long-term contracts 53

55 Overview 54

56 Overview of financial results Q111 Q211 Q311 Q Q112 Q212 Crude Steel FCA 26,476 16,556 23,101 6,063 6,277 5,866 6,009 24,215 6,249 6,014 Production FCE 34,338 22,752 30,026 7,631 7,870 7,390 6,619 29,510 7,182 7,143 (thousands of Long 25,198 18,901 22,550 6,059 6,414 5,611 5,474 23,558 5,785 5,885 metric tonnes) AACIS 15,118 13,411 14,906 3,706 3,830 3,493 3,579 14,608 3,615 3,691 Total continuing operations 101,130 71,620 90,583 23,459 24,391 22,360 21,681 91,891 22,831 22,733 Steel FCA 25,810 16,121 21,028 5,563 5,520 5,708 5,458 22,249 5,672 5,735 Shipments* FCE 33,512 21,797 27,510 7,384 7,166 6,385 6,188 27,123 7,461 6,771 (thousands of Long 27,115 19,937 23,148 5,872 6,167 5,984 5,846 23,869 5,738 5,839 metric tonnes) AACIS 13,296 11,769 13,266 3,142 3,304 3,005 3,065 12,516 3,353 3,321 Total continuing operations 99,733 69,624 84,952 21,961 22,157 21,082 20,557 85,757 22,224 21,666 Revenue FCA 25,761 12,310 17,684 4,939 5,567 5,499 5,030 21,035 5,270 5,359 (US$ millions) FCE 38,300 19,981 25,550 7,812 8,551 7,696 7,003 31,062 7,719 7,223 Long 32,230 16,741 21,315 5,889 6,664 6,676 5,936 25,165 5,763 5,698 AACIS 13,047 7,577 9,706 2,570 2,857 2,619 2,733 10,779 2,787 2,677 AMDS 23,126 13,524 15,744 4,261 5,019 4,899 4,876 19,055 4,431 4,292 Mining 3,557 2,573 4,380 1,128 1,657 1,678 1,805 6,268 1,271 1,576 Holding & service co's and eliminations (19,080) (11,685) (16,354) (4,415) (5,189) (4,853) (4,934) (19,391) (4,538) (4,347) Total continuing operations 116,942 61,021 78,025 22,184 25,126 24,214 22,449 93,973 22,703 22,478 FCA 4, , , FCE 6,448 1,946 2, , EBITDA (US$ millions) Long 6,635 1,647 2, , AACIS 3, , , AMDS 1,103 (97) (19) Mining 1, , , Holding & service co's and eliminations (668) (135) (975) 115 (169) (18) Total continuing operations 23,652 5,600 8,525 2,582 3,413 2,408 1,714 10,117 1,972 2,447 FCA Average Steel EBITDA/tonne (US$/tonne) FCE Long AACIS Total**

57 Steel shipments, EBITDA and Revenue analysis 2011 EBITDA by region 2011 Steel shipment by region* Long Carbon North America 5% Long Carbon South America 7% Flat Carbon Europe 32% Long Carbon Europe 15% Others 1% Africa 5% Flat Carbon South America 6% Asia CIS 9% Flat Carbon North America 20% Long Carbon South America 13% Long Carbon North America 2% Flat Carbon Europe 22% Flat Carbon South America 7% Long Carbon Europe 7% Others Long 4% Africa 3% CIS 14% Flat Carbon North America 24% Distribution Solutions 4% Poland 5% Germany 10% Spain 5% Italy 4% Turkey 3% France 6% 2011 Revenue by country Others Americas 4% Others Europe 15% Mexico 3% Brazil 8% South Africa 4% Canada 4% China 1% Other Asia Africa 11% United States 17% * Figures exclude shipments from Distribution Solutions which are fully eliminated on consolidation and Mining division 56

58 Steel shipments by product type/ segment 2011 FLAT CARBON AMERICAS 2011 FLAT CARBON EUROPE Coated Products 20% Slabs 18% Other Products 9% Coated Products 37% Slabs 4% Other Products 11% Cold Rolled Products 16% Hot Rolled Products 37% Cold Rolled Products 13% Hot Rolled Products 35% 2011 LONG CARBON 2011 ASIA, AFRICA AND CIS Sections 16% Semis 7% Other Products 18% Bars & Rebars 22% Wire Products 14% Sections 4% Semis 7% Other Products 6% Wire Rod / Wire Products 28% Bars & Rebars 31% Coated Products 9% Cold Rolled Products 9% Hot Rolled Products 29% Extensive geographical and product diversification 57

59 Contacts Daniel Fairclough Global Head Investor Relations Hetal Patel UK/European Investor Relations Thomas A McCue US Investor Relations thomas.mccue@arcelormittal.com Lisa Fortuna US Investor Relations lisa.fortuna@arcelormittal.com Valérie Mella European and Retail Investor Relations valerie.mella@arcelormittal.com Maureen Baker Fixed Income/Debt Investor Relations maureen.baker@arcelormittal.com