12th Basic Materials Seminar

Transcription

1 12th Basic Materials Seminar Jet Vapor Deposition (JVD) line in Liège (Belgium) Daniel Fairclough, Member of the Group Mgt Committee & Head of IR Hetal Patel, General Manager Investor Relations Valérie Mella, IR Specialist 30 March 2017

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 latest Annual Report on Form 20-F on file 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 A year of progress Safety LTIF stable YoY to 0.82x Action 2020 Major progress: $0.9 billion contribution to FY 16 EBITDA Profitability EBITDA +20% to $6.3bn despite challenging 1H Cash flow Free cash flow positive Net debt Net debt reduced to 1.8x EBITDA ArcelorMittal achieved significant progress in

4 2016 operating performance highlights FY 16 EBITDA +20% to $6.3bn vs. $5.2bn in FY 15 EBITDA ($ billion) +20% Europe: EBITDA +4.6% to $2.5bn Shipments -1.1% to 40.2Mt EBITDA per tonne +5.7% to $62/t NAFTA: EBITDA +93.1% to $1.7bn Shipments stable at 21.3Mt EBITDA per tonne +93.3% to $81/t BRAZIL: EBITDA -29.2% to $872m Shipments -6.8% to 10.8Mt EBITDA per tonne -24% to $81/t Mining: EBITDA +65% to $762m Market-priced iron ore shipments -16.6% to 33.6Mt Iron ore unit cash costs -10% YoY ACIS: EBITDA % to $678m Shipments +6.3% to 13.3Mt EBITDA per tonne % to $51/t FY14 FY15 FY to 2016 EBITDA by segment ($ billion) (0.4) (0.1) 5.2 FY15 NAFTA ACIS Europe Brazil Mining Other FY16 EBITDA impacted by improved costs offset in part by lower steel selling prices 3

5 Delivering on Action 2020 Action 2020 EBITDA progress ($billion) 2016 Action 2020 impact by segment 3.0 Mining 13% 18% Nafta 0.9 ACIS 29% 11% Brazil 29% Target Europe Action 2020 impacted 2016 EBITDA by $0.9 billion 4

6 Highlighted impacts of Action 2020 in 2016 Business area AMERICAS EUROPE ACIS Drivers - Ramp-up of Calvert, improved value added mix - US footprint optimization - Brazil value plan - Transformation program - New coke battery and PCI usage in CIS - New iron ore supply agreement and tariffs in South Africa Progress US footprint optimization largely complete* Calvert utilisation rate 79% Portfolio optimized (Sale of LaPlace and Vinton, closure of Point Lisas) Procurement, reliability & productivity savings on track Centralisation of key processes underway Portfolio optimized (closure of Zumarraga, partial shut down of Sestao & Zaragoza sale) Capturing benefits of currency devaluation and good operational performance in CIS Quarterly production records achieved in the CIS (Combined Ukraine and Kazakhstan production up +6.7% YoY**) MINING - 10% reduction in average unit iron ore cash costs 10% YoY** reduction achieved Volume growth remains a key driver for outstanding Action 2020 gains * #1 alum. line, 84 hot strip mill, and #5 continuous galv. line idled; new caster at No.3 steel shop complete and running; ** YoY refers to FY 16 v FY 15 5

7 Demand in core markets is growing Steel shipment split by segment FY 16 End market growth prospects in US (2007=100) Brazil 13% 15% ACIS 75% of shipment to developed markets % NAFTA 40 Europe 47% Construction* Machinery** Auto*** ArcelorMittal steel shipments (Mt) End market growth prospects in EU28 (2007=100) ACTION Demand recovery in core markets has been offset by high imports 6

8 Steel demand expected to grow in 2017 Global ASC 2016 v 2015* US** -1.0% to -1.5% EU % to +2% China +1% to +1.5% Brazil CIS -13.0% to -13.5% -3.5% to -4.0% Global ~+1.0% Global ASC 2017 v 2016* US** +3% to +4% EU % to +1.5% China -1.0% to 0% Brazil CIS Global +3% to +4% -0.5% to +0.5% ~+0.5% to +1.5% 2017 outlook US: An end to the inventory correction that has subdued 2016 industrial growth. Construction growth to pick up post-election uncertainty. Auto to remain stable while energy investment to increase as oil prices pick-up. Europe: Political uncertainty expected to lead to slower but still positive growth in Auto sales to continue to grow to ~15m, while construction growth to remain weak. China: Despite an expected slowdown in real estate sales, 1H 17 demand supported by lagged impact of new housing starts in 2H 16. Auto to slow after strong 2016 growth. Brazil: Mild recovery expected in auto from low levels supported by improving confidence, construction to remain stable. High household debt and weak investment will continue to hold down growth CIS: Region to return to growth as Russia exits recession as falling inflation, leads to growth in real wages Stronger growth in world ex-china should support higher steel shipments in 2017 Source: *ArcelorMittal estimates ** Excludes tubular demand 7

9 Balance sheet continues to strengthen Focussed on enhancing shareholder value; deleveraging remains near term priority Interest costs reduced by ~$1bn since 2012 Net debt lowest level since merger Net debt as Dec 31, 2016 ($ billion) Interest costs ($ billion) -49% FY 12 FY 15 FY 16 FY 12 FY 16 FY 17 Ongoing deleveraging remains the near term priority for surplus cash flow 8

10 Capitalising on near term opportunities to develop our business Additional development capex mainly driven by investment in strategic initiatives: Steel: Several investments in NAFTA and Europe focussed on capacity to supply solutions to Automotive customers; cost improvement/process optimisation projects across all segments Mining: Additional capex to optimise AMMC resource (no impact on production) and to develop the Gangra deposit in Liberia (budgeted but awaiting final approval) Capex F evolution ($ billion) Additional capex spend in 2017F ($ billion) MINING STEEL F 2016 Maintenance, reliability & minor BF relines Growth/cost reduction projects 2017F Capex spend to increase reflecting improving market fundamentals 9

11 Continued investment in R&D supports Portfolio of Next Generation Auto Steels Fortiform Fortiform S (HS/HF) Third-generation UHSS for cold stamping. Fortiform HS/HF steel allows OEMs to realize lightweight high-strength structural elements using cold forming methods such as stamping. Currently available in Europe; to be available in NAFTA in 2017 (Calvert). MartINsite A family of cold rolled fully martensitic steels with current tensile strengths from 900 to 1700 MPa. MartINsite Is perfect for anti-intrusion parts such as bumper and door beams. New higher tensile strength grades will be available for OEM qualification testing in mid Usibor Ductibor Press hardenable steels (PHS) / hot stamping steels offer strengths up to 2000 MPa. Usibor and Ductibor can also be combined thanks to laser welded blanks (LWB) to reduce weight while achieving optimal crash behavior. Both currently available in Europe; Usibor 2000 to be ready for OEM qualification testing in NAFTA in early 2017, Ductibor 1000 currently ready for qualification testing in NAFTA. JVD - Jetgal Jetskin JVD is a breakthrough process, In production and product development. Jetgal : JVD zinc coating applied to steel grades for the automotive industry. Developed for steels including UHSS Fortiform ; Jetskin : JVD zinc coating applied to steel grades for industrial applications such as household appliances, doors, drums and interior building applications. Widest offering of AHSS steel grades which can be implemented into production vehicles 10

12 AHSS share of total steel demand ArcelorMittal preferred AHSS supplier AHSS evolution* 40% 35% 30% 25% 20% 15% 10% 5% 0% ArcelorMittal market share** NAFTA ArcelorMittal is maintaining overall market share in Europe, and increasing in NAFTA Our AHSS share is higher than overall market share As the technology requirements to develop and produce new AHSS like Fortiform are higher, our share in these products has further growth potential Europe Market share in AHSS exceeds overall share * Source: Ducker **Source: Regional ArcelorMittal Marketing Intelligence 11

13 Strategic priorities 2017 Action 2020 Deliver further progress on cost optimization, mix improvement and take share of any demand growth Operational delivery Execute development capex projects; ensure stability of operations to support higher volumes Customer Franchise Continued commitment to R&D and innovation to ensure ArcelorMittal remains the global leader in steel for automotive and other advanced high strength steel applications Balance Sheet We will use surplus cash to reduce net debt while keeping the cash requirements of the business (excluding working capital) at or below our $5 billion target The world s leading global steel company positioned to deliver value to shareholders 12

14 Appendix

15 Safety is our priority Health & Safety Lost time injury frequency (LTIF) rate* Mining & steel, employees and contractors Health & Safety performance % Safety: LTIF rate of 0.82x in FY 16 vs. 0.81x in FY 15 LTIF rate of 0.84x in 4Q 16 stable vs. 3Q 16 and 0.83x in 4Q The Company s effort to improve the Group s Health and Safety record will continue The Company is focused on further reducing the rate of severe injuries and fatality prevention Our goal is to be the safest Metals & Mining company * LTIF = Lost time injury frequency defined as Lost Time Injuries per worked hours; based on own personnel and contractors 14

16 Sustainable development - key to our resilience Embedding 10 sustainable development outcomes into the business gives us long term view of risks and opportunities First steps toward an integrated reporting with Annual Review 2016 widely recognised Customers increasingly expect us to support their sustainability ambitions. Our leadership in driving multi-stakeholder sustainability standards and certification for mining and steel production is winning their support Trend towards circular economy offers us opportunities for value creation, and naturally aligns with steel versus other materials. Our leadership in circular economy was recognised in VDBO s benchmark study Carbon reduction remains a challenge local carbon targets for steel need to achieve both effective global CO2 reduction and economic growth. Our CDP score was B- Ranked 1st for low carbon technology development in the Climate Disclosure Project s report on the steel sector Nerves of Steel Who s ready to get tough on emissions? We are assessed and included in a number of sustainability leadership indices: Leadership in our response to long term trends 15

17 Trade case update Anti-Dumping (AD) and Anti Subsidy (AS) duties are in place on all three flat product categories: CORE, CRC and HRC from key importing countries (see slide 18) measures in place for five years US AD/AS cases on plate final affirmative determination against China announced. Final decision with respect to other countries expected in late March/early April Anti-circumvention investigations initiated by the Department of Commerce (DOC) for CRC and CORE imports from China (through Vietnam) with determinations due mid Sept 2017 Final AD duties on CRC imports from China & Russia Final duties on HRC and QP imports from China approved on Feb 10, 2017 by the EU council (duties increased to between 18.1% to 36.6%) Europe Ongoing AS investigation on HRC imports from China with provisional measures expected in 2Q 17 Ongoing AD investigation on HRC imports from five additional countries (Brazil, Iran, Ukraine, Russia and Serbia) New AD investigation started in December 2016 on imports from China of Corrosion resistant steel (HDG non-auto) with provisional measures expected in 3Q 17 Comprehensive solution on trade support required 16

18 Trade case progress in core markets Summary Europe and US Antidumping/CVD trade case timelines* Activity CRC Europe Investigation Provisional Definitive HRC Europe Investigation Provisional Definitive QP Europe Investigation Provisional Definitive CRS Europe Investigation Provisional Corrosion resistant US Petition Preliminary Final CRC US Petition Preliminary Final HRC US Petition Preliminary Final QP US Petition Preliminary Final APPROVED Feb 2017 but trade cases have positive momentum * Dates provided for illustrative purposes. See appendix for further details. 17

19 Key trade case update: EU & US Europe Flat, Long and Tubes Prod Exporter Status Timeline CRC AD China Russia Definitive measures and retroactive implementation were voted in favour on July 7: China: 19.8% to 22.1%, Russia: 18.7% to 36.1% Measures in place for the next 5 years US Flat Rolled Prod Exporter Status Timeline Core AD/CVD China India Italy Korea Taiwan DOC final determination (June 24, ITC voted unanimously on the measures ) CVD: China: %, India: 8% %; Italy: %; Korea: %; Taiwan de minimus (no duty imposed) AD: China %; India %; Italy %; Korea %; Taiwan: 3.77% Measures in place for the next 5 years HRC CRS (HDG non auto) QP Notes: AD China CVD China AD Iran, Serbia, Ukraine, Russia & Brazil AD China AD China AD Provisional measures published on Oct 17 - duties from 13.2% to 22.6% AD final measures voted in favour on the10 th of Feb 2017 duties from 18.1% to 36.6% CVD China investigation started May 13, 2016 AD (5 Cs) Investigation started July 7, 2016 Initiation of investigation on the 22 nd of December 2016 AD Provisional measures published on Oct 17 - duties from 65% to 74% AD final measures voted in favour on the10 th of Feb 2017 same level as provisional measures CVD China definitive measures can be expected Q Decision on final measures due Q Provisional measures could be expected Q Timelines provided are defined based on regulation maximum limits Provisional AD duties vs Rebar LF from Belarus published 19 th Dec at 12.5% Provisional AD duties vs Seamless tubes (large diameter) from China published 11 th Nov from 45.4% to 81.1% CRC HRC QP AD/CVD Brazil China India Korea AD only Japan UK AD/CVD Korea Brazil AD only Australia, Japan, Netherland, Turkey, UK AD/ CVD China, Korea AD Austria, Belgium, France, Germany, Italy, Japan, South Africa, Turkey, and Taiwan DOC final determinations: CVD: Brazil: 11.09%-11.31%; China: %; India: 10%; Korea: 3.91%-58.36% AD: Brazil:14.35%-35.43%; China: %; India: 7.6%; Japan: 71.35%; Korea: 6.32%-34.33%; UK: 5.4%-25.56% ITC voted affirmative on China, Japan and on Brazil, India, Korea, UK ITC voted negative on Russia AD and CVD - no orders will be issued DOC final determination: CVD: Brazil: 11.09%-11.30%; Korea: 3.89%-57.04% AD: Australia: 29.37%, Brazil: 33.14% %, Japan: 4.99%-7.51%, Korea: 3.89%-9.49%, Netherlands: 3.73%, Turkey: 3.66%-7.15%, UK: 33.06% ITC voted affirmative on all AD and Korea and Brazil CVD; the ITC voted negative on Turkey CVD - - no orders will be issued DOC final determination: AD/CVD China: 68.27%, 251% respectively ITC voted affirmative (3 March 2017) DOC final determinations for cooperating countries: CVD: Korea 0.62% (de minimus) AD: Austria: 41.97%, Belgium: 2.41%-8.98%, France: 4.26%-12.97%, Germany: 0%-6.56%, Italy: 6% %, Japan: 14.96%-48.64%, Korea: 6.82%, Taiwan 3.51%-28% DOC final determination for non-cooperating countries: AD: Brazil: 74.52%, South Africa: 87.72% to 94.14%, Turkey 42.02%-50% ITC voted affirmative on injury from Brazil, S. Africa and Turkey (6 Jan 2017, order issued 26 Jan 17) Measures in place for the next 5 years Measures in place for the next 5 years DOC expected to issue final decision on remaining countries in March & ITC decision expected in April 18

20 Financial results

21 EBITDA to free cashflow FY 2016 EBITDA to free cashflow analysis ($ million) FY 2016 cash needs of business totalled ~$4.5 billion (1,023) Change in working capital* (399) Premium on early bond redemption (2,125) Excluding bond premiums FCF would have been $0.7 billion 6,255 Net financial cost, tax expense, and others 2,708 (2,444) EBITDA FY 2016 Cash flow from operations Capex 264 Free cash flow Excluding bond premiums free cash flow would have totaled $0.7 billion *Working capital: trade accounts receivable plus inventories less trade and other accounts payable. 20

22 Net debt analysis FY 2015 to FY 2016 net debt analysis ($ million) (264) -4,625 (3,115) PIncludes proceeds of Gestamp sale ($1bn); US long business disposal proceeds ($0.1bn); $165m from sale of stake in Hunan Valin; and $89m from sale of ArcelorMittal Zaragoza 15,684 (1,402) ,059 Net debt at FY 2015 Free cashflow* Capital raise M&A and others Dividend Forex and other Net debt at FY 2016 Net debt decline driven by rights issue, disposal proceeds and positive FCF * Free cash flow refers to cash flow from operations less capex; includes one-time premium paid on early repayment of debt totalling $399m 21

23 Balance sheet structurally improved Net debt* ($ billion) Average debt maturity (Years) Q Q Q Q 2016 Liquidity** ($ billion) Bank debt as component of total debt (%) % 8.1 7% 3Q Q Q Q 2016 Balance sheet fundamentals improved * Net debt refers to long-term debt, plus short term debt, less cash and cash equivalents, restricted cash and short-term investments (including those held as part of asset/liabilities held for sale); ** liquidity is defined cash and cash equivalents plus available credit lines including back-up lines for commercial paper program 22

24 Liquidity and debt maturity profile Liquidity at Dec 31, 2016 ($ billion) Debt maturities at Dec 31, 2016 ($ billion) Cash Other loans Bonds 0.3 Unused credit lines 5.5 Liquidity at Dec 31, * >2021 Liquidity lines: $5.5bn lines of credit refinanced and extended in Dec 2016; two tranches: $2.3bn matures Dec 2019 $3.2bn matures Dec 2021 Debt maturity: Continued strong liquidity Average debt maturity 7.0 yrs Ratings S&P BB, positive outlook Moody s Ba1, stable outlook Fitch BB+, negative outlook Continued strong liquidity position and average debt maturity of 7.0 years * Repayments in 2017 include $0.5 billion from the asset-based revolving credit facility at AM USA. This facility does not mature until

25 Investing with focus and discipline AM/NSSC Calvert JV Gent HSM VAMA - CGL furnace NAFTA: Calvert investments to expand product capability (including 3 rd Gen UHSS) and capacity (phase 2 slab yard expansion to complete in 2017) Dofasco investments to expand galvanizing capacity and incorporate AHSS (Advanced High Strength Steel) capability Indiana Harbor investments to optimize and modernize Europe: UHSS Automotive Program & Krakow development Upgrade of industrial capabilities to produce UHSS (Ultra High Strength Steel) Upgrade of Gent HSM completed end 2016; Erection of new furnace for Gent HDG will be competed 2017 Second step of Liège annealing line transformation will be completed in 2017 Investing in Krakow: BF#5 reline, BOF#3 modernisation, rolling capacity upgrades; expected completion in 1Q 17 China: VAMA-JV for automotive steel with Hunan Valin Robust Chinese automotive market: growth to ~32 million vehicles by 2022* VAMA is a state of the art facility - pickling tandem CRM (1.5Mt); Continuous annealing line (1.0Mt), and Hot dip galvanizing line (0.5Mt) First coils produced 1Q 15; completed homologation of AHSS (Advanced high strength steel) and USIBOR with tier 1 auto OEMs; also officially homologated by some of the biggest domestic OEM s Company continues to capitalise on opportunities for development within reduced capex envelope * Source: IHC 24

26 JVD a new, breakthrough technology for the metallic coating of steel Feb 2017, ArcelorMittal opened a new 63m production line - the Jet Vapor Deposition (JVD) line at its facilities in Kessales, Belgium JVD technology coats moving strips of steel in a vacuum chamber, by vaporizing zinc onto the steel at high speed prevents corrosion and improves durability Two new product families ArcelorMittal s range of metallic coatings: Jetgal : JVD zinc coating applied to steel grades for the automotive industry developed for steels including ultra highstrength steel Fortiform Jetskin : JVD zinc coating applied to steel grades for industrial applications such as household appliances, doors, drums and interior building applications Multiple advantages including: A lower environmental footprint Ensures exceptionally uniform coating enhances the surface quality and makes welding easier for the customer Guarantees excellent adhesion of the coating, regardless of the steel grade, even for the new UHSS steels currently under development Highly flexible process with ability to produce different coating thicknesses and to coat a variety of substrates regardless of their chemical composition The JVD process is unique and is the result of a breakthrough scientific development 25

27 Europe: UHSS Automotive Program Upgrade of capabilities to produce new steels: Fortiform grades offer a 20% weight saving on identified application Commercial benefits of additional ~400kt UHSS (Ultra High Strength Steel) New stand F1 in front of line Gent HSM The project is executed in several sub projects in Gent cluster (Liège and Gent plants): Gent: Upgrade of Gent HSM completed end 2016 Erection of new furnace for Gent HDG expected to be completed in 2017 In Liège: First step of annealing line transformation (cooling zone) has been completed in 3Q 2015 First trial coils were produced in 3Q 2016 Second step of annealing line transformation expected completion in 2017 Top rolls of new direct flaming furnace - Liege Investments to enhance UHSS capabilities 26

28 Europe: ArcelorMittal Krakow (Poland) On July 7, 2015, ArcelorMittal Poland announced it will restart preparations for the relining of BF#5 in Krakow now completed during 3Q Further investments in the primary operations: The modernization of the BOF #3 Total expected cost PLN 200m (more than 40m) Investment in the downstream operations include: The extension of the HSM mill capacity by 0.9Mtpa Increasing the HDG capacity by 0.4Mtpa Expected completion in 1Q 2017 Total capex value of both projects expected to exceed PLN 300m ( 90m) Walking beam furnace #2 HRM Krakow New work rolls grinder: foundation work HRM Investments in excess of 130m in upstream and downstream installations in Krakow 27

29 Indiana Harbor - USA Footprint Indiana Harbor footprint optimization project : Current configuration uncompetitive structural changes required across all cost elements #1 aluminize, 84 hot strip mill (HSM), and #5 continuous galvanizing line (CGL) now idled; steel shop No.2 expected to be idled in 2017 Planned investments totalling ~US$200m:; New caster at No.3 steelshop installed and commissioned in 4Q 16 Restoration of 80 hot strip mill, IH finishing, and logistics ongoing Project completion expected in 2018 No. 3SP: New #2 Caster Indiana Harbor Plant 80 HSM: 5 Walking Beam Furnace No. 3SP: New No. #23SP: Caster New commissioning Downcomer ArcelorMittal USA now progressing with a footprint optimization project at Indiana Harbor 28

30 Dofasco (NAFTA) Cost optimization, mix improvement and increase of shipments of galvanized products: Phase 1: New heavy gauge galvanize line (#6 Galvanize Line): Completed construction of heavy gauge galvanizing line #6 (cap. 660ktpy) and closure of line #2 (cap. 400ktpy) increased shipments of galvanized sheet by 260ktpy, along with improved mix and optimized cost Line #6 will incorporate AHSS capability part of program to improve Dofasco s ability to serve customers in the automotive, construction, and industrial markets The first commercial coil was produced in April 2015 with ramp up ongoing Phase 2: Approved galvanize line conversion to Galvalume and Galvanize: Restart conversion of #4 galvanize line to dual pot line (capacity 160ktpy of galvalume and 128ktpy of galvanize products) and closure of line #1 galvanize line (cap.170ktpy of galvalume) increased shipments of galvanized sheet by 128ktpy, along with improved mix and optimized cost. Expected completion in 2Q 2017 Expansion supported by strong market for galvanized products 29

31 AM/NS Calvert JV Investment in the existing No.4 continuous coating line: Project completed 1Q 2015: Increases ArcelorMittal s North American capacity to produce press hardenable steels one of the strongest steels used in automotive applications, Usibor, a type one aluminum-silicon coated (Al Si) high strength steel AM/NS Calvert will also be capable of producing Ductibor, an energy-absorbing high strength steel grade designed specifically to complement Usibor and offer ductility benefits to customers Modifications completed at the end of 2014 and the first commercial coil was produced in January 2015 Slab yard expansion to increase Calvert s slab staging capacity and efficiency (capex $40m): To expand the HSM slab yard bays 4 & 5 with overhead cranes and roller table to feed the HSM production up to 5.3mt/year of coils. The current HSM consists of 3 bays with 335kt capacity for incoming slabs (less than the staging capacity required to achieve 5.3mt target). Phase 1 completed 1Q 2016: Slab yard expansion of Bay 4 and minor installations for Bay 5 increase coil production up to 4.6mt/pa Phase 2: Slab yard expansion Bay 5 Increase coil production from 4.6mt/pa to 5.3mt/pa. Completion expected in 2017 Phase HSM Slab 1 slab yard yard Bay 4 Investment in Calvert to further enhance automotive capabilities 30

32 VAMA-JV with Hunan Valin (China) VAMA: JV between ArcelorMittal and Hunan Valin which will produce steel for high-end applications in the automobile industry, supplying international automakers and first-tier Chinese car manufacturers as well as their supplier networks for rapidly growing Chinese market Construction of automotive facility : State of the art pickling tandem CRM (1.5Mt); Continuous annealing line (1.0Mt), and Hot dip galv. line (0.5Mt) Capex ~$832 million (100% basis) First automotive coils produced during 1Q 2015 Recent developments: VAMA main products (Usibor 1500P, Ductibor 500, DP980 and DP780) are approved by large number of end users and sold to the Tier 1 stamper market Finished product CGL furnace Entry section of Continuous Annealing Line Skin pass mill and CGL * Source: IHC Robust Chinese automotive market: growth to ~32 million vehicles by 2022* 31

33 Acindar (Brazil segment) New rolling mill at Acindar (Argentina): New rolling mill (Huatian) in Santa Fe province to increase rebar capacity by 0.4mt/year for civil construction market: New rolling mill will also enable Acindar to optimize production at its special bar quality (SBQ) rolling mill in Villa Constitución, which in future will only manufacture products for the automotive and mining industries Estimated capital expenditure of ~$100m Project completed in 1Q 2016 Finishing block Hot commissioning Plant overview Reheating Furnace New Building Expansion supported by construction market in Argentina 32

34 MACRO (highlights)

35 Regional inventories German inventories (000 Mt) (latest data point: Jan 17) US service centre total steel inventories (000 Mt) (latest data point: Feb 17) Brazil service centre inventories (000 Mt) (latest data point: Jan 17) China service centre inventories* (Mt/mth) with ASC% (latest data point: Mar 17) Inventory trends * Source: WSA, Mysteel, ArcelorMittal Strategy estimates 34

36 Global apparent steel consumption China* 0 +64% % to -1.0% 2017F EU28* % +0.5% to +1.5% F 160 NAFTA* -2% +3% to +4% ROW* % +2% to +3% F F 2016 Global ASC growth of ~ +1.0%; 2017 Global ASC growth estimated at ~ +0.5% to +1.5% *ArcelorMittal estimates of finished ASC in Million Mt 35

37 Demand in core markets is growing End market growth prospects in US and EU28 (2007=100) USA EU28 Construction* Machinery** Auto*** Demand recovery in core markets * Weighted by steel demand, i.e. larger weight given to non-residential; ** Industrial output of machinery and equipment (Source: IHS Global Insight (April 2016) and IHS Global Construction (May 2016)) *** Light vehicle assembly (Source: LMC Automotive (March 2016)) 36

38 China addressing its excess capacity 11 th 5-year plan th 5-year plan 2013 September 2016 February 2017 February Eliminate capacity below following standard: - BF < 300m 3 - BOF < 20t - EAF < 20t By 2005, overall energy consumption < 0.76 tons of coal equivalent; water consumption < 12t per ton By 2010, overall energy consumption < 0.73 TCE; water consumption < 8t By 2012, overall energy consumption < 0.7 TCE; water consumption < 6t Eliminate capacity below following standard by 2011: - BF < 400m 3 - BOF < 30t - EAF < 30t By 2011, overall energy consumption < 0.62 TCE; water consumption < 5t per ton; dust emission per ton < 1 kilogram; CO 2 emission per ton < 1.8 kilogram Eliminate capacity below following standard : - BF < 400m 3 - BOF < 30t - EAF < 30t By 2015, overall energy consumption < 0.58 TCE; water consumption < 4 m 3 ; SO 2 emission per ton < 1 kilogram Reduce 80mt capacity Increase financial incentives in capacity reduction or volume swap proposals Implement penalties through high electricity & water prices for those companies that fail to meet environmental standard Reduce mt capacity over 5 years No projects of new capacity There will be a mandatory part and a voluntary part The mandatory part uses same criteria as earlier policy but adds criteria for product quality and for safety The voluntary part will rely upon financial incentives to cut capacity. Special funds will be used for redeployment incentives and debt restructuring Target accelerated to 140Mt capacity reduction over 3 years* (from previous 3-5 years) 65Mt announced closures for 2016 (~40% of target reached) Total for coal and steel industry workers redeployed ~700K Previous capacity closures more than offset by rapid capacity additions China steel capacity rationalisation will take time trade action to protect during this transition * As Noted by CISA, from the beginning of 2017, Chinese industry to cut capacity within 3 years (revised from previous 3-5 year target) 37

39 Despite declining real estate, other sectors support steel demand in China Forecast crude steel demand in China (million tonnes) Base case, Q outlook Others Container Ship Building Auto Light industry Machinery Infrastructure Real estate Sources: ArcelorMittal Corporate Strategy team analysis China demand stabilized Highly Restricted 38 38

40 China exports declining China exports Mt* China trade data, NSA, mt Exports Imports Net-trade (latest data point: Feb 17) Chinese steel exports for Feb 17 came in at 5.75Mt, down -29% YoY, -23% MoM Lowest level since June 2014 Exports in 2016 declined by -3.1% to 109Mt from 2015 record levels (112Mt) Chinese steel exports in Feb 17 lowest since June 2014 * Source: Haver 39

41 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov imports into US lower than 2015 Chinese Imports - Carbon Flat Roll 000 tons* Chinese carbon flat roll imports into the U.S. have reduced significantly, down 90% for carbon flat roll imports into the U.S. dropped 15.5% YoY Flat roll import market share fell to 18% in 2016 vs. 21% for the same period in 2015 Domestic producers have been benefiting from falling imports into the U.S., with 2016 domestic shipments up 1.3% YoY Imports % Share of Imports Imports - Carbon Flat Roll 000 tons* 1,800 1,600 1,400 1,200 1, % 16% 12% 8% 4% 0% 30% 25% 20% 15% 10% 5% 0% Imports % Share of ASC * Source data: U.S. Census Bureau, Department of Commerce; in short tons allowing domestic producers to recover market share 40

42 Automotive 41

43 ArcelorMittal Automotive Strategy Four key pillars of ArcelorMittal automotive strategy New products and solutions Develop new products and solutions to meet OEM targets for weight reduction and crash performance Downstream network Pursue downstream technology solutions through partnerships and wholly owned subsidiaries. Quality and service leadership Make existing products and solutions available wherever we have automotive production facilities Geographical expansion Expand our geographic footprint into emerging markets Four pillars to answer the key challenges and capture opportunities 41

44 Leading supplier to OEMs worldwide 42

45 Global presence and reach Automotive production facilities Alliances & JV Commercial Teams R&D Centers Vehicle production 2016 > 20 M veh > 15 M veh & < 20 M veh > 10 M veh & < 15 M veh > 5 M veh & < 10 M veh > 2.5 M veh & < 5 M veh > 1 M veh & < 2.5 M veh < 1 M veh Global supplier with increasing emerging market exposure Source: LMC figures for Western and Eastern Europe and Russia; IHS figures for all other regions; personal cars and light commercial vehicles < 6t 43

46 Maintaining leadership position in automotive steel ArcelorMittal is the global leader in steel for automotive S-In-Motion SUV/Mid-Size Sedans Global R&D platform sustains a material competitive advantage Proven record of developing new products and affordable solutions to meet OEM targets Advanced high strength steels used to make vehicles lighter, safer and stronger AM/NS Calvert Automotive business backed with capital with ongoing investments in product capability and expanding our geographic footprint: AM/NS Calvert JV: Break-through for NAFTA automotive franchise VAMA JV in China: Auto certifications progressing Dofasco: Galvanizing line expansion underway Continue to invest and innovate to maintain competitiveness 44

47 Automotive growth in developed world USA / Canada and EU28 + Turkey vehicles production million units USA+CANADA (LMC) USA+CANADA (IHS) EU28+Turkey (LMC) USA and Canadian automotive production forecast to stabilize at ~14m units level Stability supported by replacement (avg. age of fleet 11.5Yrs), continued economic and population growth EU28 and Turkey production recovered in 2016 with further growth potential USA/Canadian production stable, EU28 & Turkey continue to recover 45

48 Automotive emerging market growth China vehicle production ( 000s) 35,000 30,000 China 26,975 25,000 20,000 15,000 10,000 5, ,255 China production to grow steadily by +6mvh in 2007 to ~33mvh by 2024 India production to increase ~ 80% by 2024 (from 4.2mvh in 2014 to 7.6mvh in 2024) Brazil, India, Russia & Mexico vehicle production ( 000 s) 8,000 7,000 Russia India Brazil Mexico 7,564 6,000 5,000 4,171 4,695 4,000 3,487 3,000 3,166 2,129 2,365 2,000 1,000 1,193 0 Mexico production is expected to increase by 35% between Brazil production is expected to have a slow recovery Russia production is expected to recover and reach 2013 level in 2022 Strong growth expected in China, Mexico and India Source: IHS 46

49 ArcelorMittal s S-in motion Demonstrating the weight saving potential of new products ArcelorMittal generic steel solutions includes body-in-white, closures, and chassis parts From steel provider to global automotive solutions provider 47

50 Steel to remain material of choice for auto North American Utility of the Year 2017 Chrysler Pacifica The all-new Pacifica body structure is made up of 72% advanced steels and 250 lbs. lighter than the model it replaced. New Volvo XC-90 The Pacifica is the lightest minivan on the road and the only to earn NHTSA s five-star safety rating. The Pacifica features ArcelorMittal s S-in motion five-piece laser-welded door ring. Chrysler Pacifica uses 72% AHSS 48

51 Value of co-engineering: Chrysler Pacifica 1. Crash Analysis Narrow offset impact (SORB) Roof crush Usibor 1500 Ductibor 500 Side impact Co-engineering helped save 10kg/vehicle on the Door Ring Pole impact 2. Forming Analysis 3. Final Part 4. Vehicle Assembly After 36-months, 2,000 engineering hours and approximately 300 design iterations, the team agreed on one central concept the world s first five-piece hot-stamped laser-welded door ring and b-pillar 49

52 Small offset crash performance comparison 2013 Other OEM 2017 Chrysler Pacifica Design without Hot Stamped Door Ring Design with Hot Stamped Door Ring With five-piece laser-welded door ring, 2017 Pacifica showed very low deformations in the door opening area and the driver s side door is still opened after the crash event 50

53 Steel as a green material for the construction of light vehicles Total life cycle greenhouse gas (GHG) emissions must be considered to avoid undesirable consequences in the manufacturing and recycling phases Automotive manufacturers use LCA as part of their sustainability programs 51

54 Current and future material mix Light weighting trend to continue: Carbon fibre not expected to be an imminent threat due to high cost Aluminium still too expensive to play a role in mass market segment Steel remains the most recyclable metal (100% recyclable / environmentally friendly) Advanced High Strength Steels (cold & hot stamping) to be dominant Emerging grades have potential to substitute aluminium parts Steel to remain material of choice with greater share of AHSS 52

55 GROUP (highlights)

56 Global scale, regional leadership ArcelorMittal is worlds leading steel and mining company, with presence in 60 countries and an industrial footprint in 19 countries 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 Balanced portfolio of cost-competitive assets in both developed and developing markets (No1: EU; North America; Africa, LatAm, CIS) ~209,400 employees serving customers in over 170 countries Mining 5% Europe 49% Mining 12% Europe 38% ACIS 10% 2016 Revenues $56.8bn* ACIS 10% 2016 EBITDA $6.3bn* NAFTA 26% Brazil 10% NAFTA 27% Brazil 13% Sales by destination as % of total Group CANADA 4% MEXICO 3% USA 20% NAFTA 26% BRAZIL 8% ARGENTINA 2% Others 3% LATAM 13% BELGIUM 2% FRANCE 6% GERMANY 9% ITALY 3% SPAIN 5% Others 6% EU 15 30% CZECH REPUBLIC 2% POLAND 4% ROMANIA 1% Others 2% Rest EU 9% EU 39% Africa 7% * Percentages figures shown in the charts excluding others and eliminations Global scale delivering synergies 54

57 Steel demand by end market China steel demand split Railway 1% Shipbuilding 1% Machinery 19% US steel demand split Machinery and equipment 10% Construction 40% Other 3% Energy 10% Construction 68% Automobiles 8% Household appliances 2% Europe steel demand split Construction 35% Mechanical enginering 14% Defense & Homeland Security 3% Appliances 4% Metal goods 14% Other 2% Tubes 13% Other transport 2% Domestic appliances 3% Automobiles 18% Container 4% Automobile 26% Europe & NAFTA Regional steel demand by end markets Sources: China-Bloomberg, Europe: Eurofer, US: AISI 55

58 Group performance FY16 v FY15 FY16 v FY15 analysis: Underlying EBITDA ($ Millions) and EBITDA/t Crude steel production decreased 1.9% to 90.8Mt with decreases in Brazil (-4.1%), Europe (-2.8%) and NAFTA (-2.6%), offset in part by improvements in ACIS (+4.0%) Steel shipments decreased 0.8% primarily due to declines in Brazil (-6.8%), Europe (-1.1%) offset in part by increases at ACIS (+6.3%) Sales decreased 10.7% to $56.8bn vs $63.6bn for 12M 2015, primarily due to lower average steel selling prices (ASP) (-9.0%), lower steel shipments (-0.8%) and lower marketable iron ore shipments (-16.6%) offset in part by higher seaborne iron ore reference prices (+4.8%) Underlying EBITDA improved 18% primarily due benefit of Action 2020 cost savings offset by lower ASP and volumes FY 16 operating performance of $4.2bn was impacted by exceptional income ($832m relating to a one-time gain on employee benefits following the signing of the new US labour contract) and impairments charges of $0.2bn (including $49m related to the sale of ArcelorMittal Zaragoza in Spain, $156m related to the Vanderbijlpark and Saldanha plant in South Africa) $56/t 1,103 4Q 15 Average steel selling price $/t -2.0% Q 15 3Q 16 Steel shipments (000 t) 19,737 4Q 15 $93/t $83/t $63/t $75t -12.4% 1,897 3Q 16 20,316 3Q % 1,661 4Q 16 4Q 16 20,045 4Q 16 5,300 FY 15* 84,586 FY % -9.0% -0.8% 6,255 FY FY 15 FY 16 83,934 FY 16 * Includes $69m provision primarily related to onerous hot rolled and cold rolled contracts in the US Group profitability increased YoY 56

59 Group performance 4Q 16 v 3Q 16 4Q 16 v 3Q 16 analysis: Underlying EBITDA ($ Millions) and EBITDA/t Crude steel production decreased 3.8% to 21.8Mt with decreases in NAFTA (-7.7%), Brazil (-3.8%) and Europe (down -3.8% primarily due to the planned reline at ArcelorMittal Asturias (Spain)) offset in part by improvements in ACIS (+2.6%) Steel shipments declined 1.3% to 20.0Mt primarily due to lower shipments in ACIS (-9.2%) and NAFTA (-6.6%) offset in part by improvements in Brazil (+3.3%) and Europe (+1.6%). Sales for 4Q 2016 declined 2.7% to $14.1bn, primarily due to lower steel shipments (-1.3%) and lower ASP (-2.0%), offset in part by higher iron ore reference prices (+20.8%). EBITDA declined 12.4% primarily due lower ASP and volumes and impact by higher input costs Operating performance of $0.8bn was impacted by $156m impairment charges (related to the Vanderbijlpark and Saldanha plant in South Africa) $56/t 1,103 4Q 15 Average steel selling price $/t -2.0% Q 15 1,897 3Q 16 3Q 16 Steel shipments (000 t) $93/t $83/t $63/t $75t -12.4% -1.3% 1,661 4Q 16 4Q 16 5,300 FY 15* 18.0% -9.0% -0.8% 6,255 FY FY 15 FY 16 19,737 20,316 20,045 84,586 83,934 4Q 15 3Q 16 4Q 16 FY 15 FY 16 * Includes $69m provision primarily related to onerous hot rolled and cold rolled contracts in the US Group profitability declined QoQ 57

60 NAFTA performance 4Q 16 v 3Q 16 4Q 16 v 3Q 16 analysis: Crude steel production decreased 7.7% to 5.2Mt. Steel shipments decreased 6.6% to 5.0Mt, primarily driven by a 8.5% decrease in flat products volumes mainly reflecting a destock in the US. Sales decreased 11.1% to $3.8bn, primarily due to lower ASP -4.7% (flat products and long ASP products declined -3.6% and -3.7%, respectively) and lower steel shipment volumes. EBITDA in 4Q 2016 decreased 46.9% to $301m primarily due to 4.7% decline in ASP (flat products and long products declined by -3.6% and -3.7%, respectively) and lower steel shipment volumes (-6.6%) (primarily driven by a 8.5% decrease in flat products volumes). Underlying EBITDA ($ Millions) and EBITDA/t $60/t 273 4Q 15 Average steel selling price $/t -4.7% Q 15 $106/t $60/t $45/t $81/t -46.9% 566 3Q 16 3Q Q 16 4Q FY 15* 79.2% -8.2% 1,719 FY FY 15 FY 16 Steel shipments (000 t) -6.6% -0.1% 4,581 5,364 5,011 21,306 21,281 4Q 15 3Q 16 4Q 16 FY 15 FY 16 Performance declined due to lower volumes and lower ASP * Includes $69m provision primarily related to onerous hot rolled and cold rolled contracts in the US 58

61 Improvement NAFTA Crude steel achievable capacity (million Mt) % Flat Flat 82.0% Long Long 18.0% USA Canada Mexico NAFTA ** ** Number of facilities (BF and EAF) ** NAFTA No. of BF No. of EAF USA (*) 7 2 Canada 3 4 Mexico 1 4 Total NAFTA leading producer with 28.1Mt /pa installed capacity (*) Georgetown wire rod facility closed in August 2015, ** Vinton and LaPlace sold in 2Q

62 BRAZIL performance 4Q 16 v 3Q 16 4Q 16 v 3Q 16 analysis: EBITDA ($ Millions) and EBITDA/t Crude steel production decreased 3.8% to 2.8Mt Steel shipments increased by +3.3% to 2.8Mt primarily due to a +8.5% increase in flat steel shipments (primarily exports) offset in part by a 6.0% decrease in long product shipments. Sales increased 1.2% to $1.8bn, due to higher steel shipments, offset in part by 2.9% decrease in ASP primarily in slab exports (both flat and long steel prices declining -4.6% and -1.7%, respectively). EBITDA decreased by 29.1% to $213m primarily on account of lower average steel selling prices (due in part to weak product mix) as well as higher costs including repair and maintenance expenditures. $63/t 181 4Q 15 Average steel selling price $/t -2.9% Q 15 $109/t $75/t $107/t $81/t 301 3Q 16 3Q % 213 4Q 16 4Q 16 1,231 FY % -17.2% 872 FY FY 15 FY 16 Steel shipments (000 t) +3.3% -6.8% 2,873 2,751 2,841 11,540 10,753 4Q 15 3Q 16 4Q 16 FY 15 FY 16 Performance declined primarily due to lower ASP and higher costs 60

63 Improvement Brazil Crude steel achievable capacity (million Mt) Geographical footprint and logistics % Flat Flat 59.0% Long 1.4 Long 41.0% Monlevade Piracicaba Cariacica Brazil Argentina Brazil Tubarao Number of facilities* (BF and EAF) Acindar No. of BF No. of EAF Flat 3 - Long 3 6 BRAZIL facilities Flat Long Total 6 6 The map is showing primary facilities excl. Pipes and Tubes. Brazil leading producer with 11.9Mt /pa installed capacity (*) Excludes Point Lisas (Trinidad) closed in

64 EUROPE performance 4Q 16 v 3Q 16 4Q 16 v 3Q 16 analysis: Crude steel production decreased by 3.8% to 10.2Mt primarily due to the planned reline at ArcelorMittal Asturias (Spain). Steel shipments increased by 1.6% to 9.5Mt, primarily due to a 7.3% increase in long product shipments following a recovery from the weak third quarter 2016 levels. Sales decreased 0.5% to $7.1bn, primarily due to lower ASP (- 0.9%), (driven by a -6.1% decrease in long product prices offset in part by a +1.0% increase in flat product prices), offset in part by higher steel shipments EBITDA decreased by 2.6% to $698m primarily due to higher input costs and translation foreign exchange impacts partially offset by higher steel shipment volumes and higher ASP in euros (+2.4%). EBITDA ($ Millions) and EBITDA/t $57/t Q 15 Average steel selling price $/t -0.9% Q 15 3Q 16 3Q % Steel shipments (000 t) $76/t $73/t $59/t $62/t +1.6% 4Q 16 4Q 16 2,393 FY % -1.1% 2,503 FY FY % FY 16 9,473 9,382 9,535 40,676 40,247 4Q 15 3Q 16 4Q 16 FY 15 FY 16 Performance declined due to higher input costs offset by higher steel shipments and Euro ASP 62

65 Improvement Europe Crude steel achievable capacity (million Mt) Geographical footprint and logistics 53 Flat Flat 100.0% 71.0% Dunkirk Bremen Duisburg Ghent Liège Florange Hamburg EHS Belval; Differdange Dabrowa Krakow Ostrava Asturias Fos Zenica Galati Long Long 29.0% Europe Number of facilities (BF and EAF) EUROPE No. of BF No. of EAF Flat * 20 5 Long Total * EUROPE facilities Flat Long Flat and Long The map is showing primary facilities excl. Pipes and Tubes. Europe leading producer with 53Mt /pa installed capacity * Excludes 2BF s in Florange; (+) excludes Zaragoza which was sold in Q

66 ACIS performance 4Q 16 v 3Q 16 4Q 16 v 3Q 16 analysis: Crude steel production increased by 2.6% to 3.6Mt primarily due to the production recovery at Kryvyi Rih in Ukraine which had been impacted by production outages during the prior period. Steel shipments decreased by 9.2% to 3.1Mt primarily due to seasonally lower shipments in both CIS operations and South Africa. Sales decreased 3.8% to $1.5bn, primarily due to lower steel shipments (-9.2%) offset in part by higher ASP (+3.0%). Operating loss in 4Q 2016 of $92m was impacted by impairments of $156m related to the Vanderbijlpark and Saldanha plants in South Africa. EBITDA declined to $142m in 4Q 16; impacted by a one-time charge of $28m in relation to environmental liabilities at the Thabazimbi mine in South Africa, lower steel shipment volumes and higher input costs partially offset by higher ASP EBITDA ($ Millions) and EBITDA/t $20/t 61 4Q 15 Average steel selling price $/t +3.0% Q Q 16 3Q % Steel shipments (000 t) $68/t $46/t $25/t $51/t -9.2% 142 4Q 16 4Q FY % -8.6% +6.3% 678 FY FY 15 FY 16 3,078 3,408 3,095 12,485 13,271 4Q 15 3Q 16 4Q 16 FY 15 FY 16 Performance declined due to lower shipments offset in part by higher ASP 64

67 ACIS Crude steel achievable capacity (million Mt) Geographical footprint and logistics % Flat 42.0% Kryviy Rih Temirtau Flat Long 58.0% Long Kazaksthan Ukraine S Africa ACIS 4 Number of facilities (BF and EAF) ACIS No. of BF No. of EAF Saldanha Vanderbijlpark Vereeniging Newcastle Kazakhstan 3 - Ukraine 5 - South Africa 4 2 Total 12 2 ACIS facilities Flat Long The map is showing primary facilities excl. Pipes and Tubes. ACIS leading producer with 19.7Mt /pa installed capacity 65

68 Mining performance 4Q 16 v 3Q 16 4Q 16 v 3Q 16 analysis: Own iron ore production increased 1.9% to 13.9Mt due to higher production at Ukraine and Canada, offset in part by lower production EBITDA ($ Millions) and EBITDA/t +45.9% 65.0% in Kazakhstan and Bosnia own iron ore production is expected to increase with the transition to the Gangra deposit in Liberia (project under review ) additional production to potentially reach 3Mtpa, representing an 4Q 15 3Q 16 4Q 16 FY 15 FY 16 increase of 1Mt versus 2016, until proposed full ramp up to 5Mtpa in Iron ore (MT) 2018); restart of the Volcan mine in Mexico due to revised mine plan in light of improved price conditions (additional 2Mt) and production recovery in Ukraine Market-priced iron ore shipments in 4Q 2016 were stable at 8.1Mt, primarily driven by lower shipments in AMMC offset by increased 4Q 15 3Q 16 4Q 16 FY 15 FY 16 shipments in Ukraine. AMMC shipments were impacted by logistics and transportation issues following severe weather conditions. Coal (Mt) Market-priced coal shipments were 7.5% lower at 0.9Mt, primarily due to decreased shipments at Princeton (US) offset in part by higher shipments in Kazakhstan. EBITDA increased by 45.9% to $297m, primarily due to higher seaborne iron ore market reference prices (+20.8%) Q 15 3Q 16 4Q 16 FY 15 FY 16 Own production Shipped at market price Shipped at cost plus Mining performance improved primarily due to higher iron ore prices

69 A global mining portfolio addressing Group steel needs and external market Key assets and projects Canada Baffinland 50% (1) Bosnia Iron Ore 51% Ukraine Iron Ore 95.13% USA Iron Ore Minorca 100% Hibbing 62.31%* USA Coal 100% Canada AMMC 85% (2) Kazakhstan Coal 8 mines 100% Kazakhstan Iron Ore 4 mines 100% Iron ore mine Mexico Iron Ore Las Truchas & Volcan 100%; Pena 50%* Liberia Iron Ore 85% Coal mine Existing mines Brazil Iron Ore 100% South Africa Iron Ore** Geographically diversified mining assets * Includes share of production ** Includes purchases made under July 2010 interim agreement with Kumba (South Africa) 1) Following an agreement signed off in December 2012, on February 20th, 2013, Nunavut Iron Ore subscribed for new shares in Baffinland Iron Mines Corporation which diluted AM s stake to 50% 2) January 2nd, 2013 AM entered into an agreement to sell 15% of its stake in AM Mines Canada to a consortium lead POSCO and China Steel Corporation (CSC). 3) New exploration projects, Indian Iron Ore & Coal exploration, Coal of Africa (9.71%) and South Africa Manganese (50% ) are excluded in the above. 4) On January 19, 2015, ArcelorMittal announced the sale of its interest in the Kuzbass Coal mines in the Kemerovo region of Siberia, Russia, to Russia s National Fuel Company (NTK). This transaction closed on December 31,

70 ArcelorMittal IR app and contacts Daniel Fairclough Global Head Investor Relations Hetal Patel UK/European Investor Relations Valérie Mella European/Retail Investor Relations Maureen Baker Fixed Income/Debt Investor Relations Lisa Fortuna US Investor Relations lisa.fortuna@arcelormittal.com The ArcelorMittal investor relations app is available for download on IOS or android devices 67