Global Resources Conference 2019, London

Transcription

1 7 Global Resources Conference 2019, London March 6 th, 2019 Daniel Fairclough, Head of Global IR Hetal Patel, General Manager IR Highly Restricted 0

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 Structural transformation Improved business and improved industry means ArcelorMittal well positioned for success Global Steel Industry ArcelorMittal Balance sheet ArcelorMittal Portfolio Trade responses to unfair competition Capacity reduced Consolidation occurring Net debt reduced IG rating recovered Deleveraging to continue Action2020 Votorantim acquired ILVA acquired Essar in process Strengthened Strengthened Strengthened 2

4 Safety is our priority LTIF* rate in 2018 was the lowest since the ArcelorMittal merger ** * LTIF = Lost time injury frequency defined as Lost Time Injuries per worked hours; based on own personnel and contractors; A Lost Time Injury (LTI) is an incident that causes an injury that prevents the person from returning to his next scheduled shift or work period. Lost Time Injury Frequency Rate (LTIFR) is the number of Lost Time Injuries per million man-hours. ** Data does not include the LTIFR for Ilva, which came into the scope as from November 1, Ilva LTIFR for the final two months of 2018 was 8.2, and the total LTIFR for the group inclusive of this was 0.73x for the FY

5 Sustainable Development key to our resilience Driven by our vision to make steel the material of choice for the low carbon and circular economy R&D Driven Innovation Contribution Development Product innovation including S-in-motion solutions for automotive Steligence, a radical new concept for the use of steel in construction awarded Steelie award for Excellence in Life Cycle Assessment To low carbon and circular economy through Carbon Smart technology like the LanzaTech project on Carbon Capture and utilisation at Gent, Belgium Design of our new headquarters in Luxembourg showcasing that steel components in are re-usable Drive the development of environmental and social certificate schemes for steel and mining production Providing customers new levels of complete mine-to-metal reassurance 4

6 2018: strategic progress and improved financials Improved operating conditions more than offset operational disruptions Financial Highlights 20.3% increase in operating income 22.1% improvement in EBITDA Steel shipment volumes declined 1.6% (-3.0% adjusted for scope) Net income of $5.1bn, representing a 12% ROE IG rating Recovered investment grade credit rating with all 3 agencies 0.69x LTIF rate Best safety performance since ArcelorMittal s merger Shareholders equity increased to $44.1bn Net debt/ LTM EBITDA now 1.0x Recommended increase in base dividend to $0.20/sh $4.4bn Investment in working capital $0.6bn Net Pension and OPEB liability reduced significantly 5

7 2018 financial results reflect better markets Steel divisions benefitted from improved steel spreads partially offset by lower volumes 2017 to 2018 EBITDA by segment ($bn) NAFTA: EBITDA +45.1% to $2.5bn Shipments +1.0% to 22Mt Europe: EBITDA +7.0% to $3.8bn Shipments +0.2% to 41Mt 0.3 EBITDA/t +43.7% to $112/t EBITDA/t +6.8% to $93/t BRAZIL: EBITDA +55.4% to $1.5bn Shipments +5.8% to 11.5Mt EBITDA/t +46.9% to $134/t ACIS: EBITDA +36.9% to $1.4bn Shipments -10.3% to 11.7Mt EBITDA/t +52.7% to $120/t 8.4 Mining: EBITDA -9.2% to $1.3bn Iron ore shipments +5.5% to 37.6Mt; Coal shipments -10.7% FCF breakeven level remains at $40/t CFR China 62% Fe FY17 NAFTA ACIS Europe Brazil Mining Others FY18 6

8 Production impacted by operational disruptions Nonrecurrence should provide support for 2019 volumes Estimated disruption loss of ~2Mt in Mt of production losses identified as project related and 0.9Mt as unplanned outages Operational issues faced largely in ACIS and NAFTA during 2018 Volume disruptions incurred at other segments earlier in 2018 were recovered Crude steel production in 2018 v 2017 (scope adjusted for Votorantim and Ilva acquisitions) (Mt) NAFTA Brazil Europe ACIS Focus in 2019 to ensure non recurrence of such issues which should provide support for 2019 volumes Unplanned outages Project related

9 Volumes impacted Action2020 progress Continued gains in cost/mix improvement offset in part by shipment losses 3 years into the Action 2020 improvement plan to structurally improve EBITDA by $3bn Action 2020 cumulative EBITDA improvement ($bn) 2018 cost/mix gains of $0.4bn: Digital transformation in Europe Ukraine (coke oven battery savings) Brazil (cost & mix improvement) Volume Cost/Mix South Africa (improved efficiencies from debottlenecking production and top line optimisation) 0.3 Volume progress reversed due to operational disruptions loss of $0.3bn $1.6bn cumulative savings from Action 2020 plan Company remains focussed on achieving its Action2020 targets F Target 8

10 Stronger balance sheet Significant working capital investment in 2018; release expected in 2019 Capital deployment in 2018 Investment in working capital ~$4.4bn 2.8 Net debt to EBITDA 3.0 Net M&A spend $0.4bn Growth capex $0.3bn Cash returned to ArcelorMittal shareholders $0.3bn Dec 31, 2010 Dec 31, 2011 Dec 31, 2012 Dec 31, 2013 Dec 31, 2014 Dec 31, 2015 Dec 31, 2016 Dec 31, 2017 Dec 31,

11 CAPITAL ALLOCATION 10

12 Capital allocation to support strategic goals Building strong foundations for future returns Building the strongest platform for consistent capital returns to shareholders Robust balance sheet Targeting $6bn net debt a level of debt that should support positive FCF* and IG credit metrics at all points of the cycle Resilient platform Invest in strengths Whilst investing in high-return opportunities with focus and strict discipline To grow FCF potential Returns to shareholders Progressively increase base dividend with a commitment to returning a percentage of FCF on attainment of debt target Consistently return cash * Free cash flow refers to cash flow from operations less capex 11

13 Investment plan focussed on high-return projects Additional capex planned in 2019 to fund ILVA as well as mix & cost improvement projects UNIQUE opportunities in CORE markets Committed to high-return projects (capex, $bn) Move MIX to most attractive end markets 3.3 Incremental budget approved including carry-over 4.3 Increase COMPETITIVENESS 2018 ILVA Brazil & Mexico Other Strategic Projects 2019F 12

14 Mexico: HSM project High return mix improvement with future optionality Project summary: HSM project to optimize capacity and improve mix $1bn project initiated in 4Q 17; expected completion in 2020 New 2.5Mt hot strip mill to increase share of domestic market (domestic HRC spreads are significantly higher vs. slab exports) Includes investments to sustain the competitiveness of mining operations and modernizing its existing asset base ArcelorMittal Mexico highly competitive low cost domestic slab Growth market, with high import share Mexico is a net importer of steel (50% flat rolled products import share) ASC estimated to grow 2.0% CAGR ; growth in non-auto +2.2%, supported by industrial production and public infrastructure investment Potential to add $250 million in EBITDA on completion US$1.0bn 3Yr investment commitment Construction of a new 2.5Mt hot strip mill (Mt) % 2015 ASC (Million tonnes; flat products) 16.2 John Deere India 50% 54% Share captured by Imports 50% Project status: Deep foundations nearly complete (demobilizing in February); building erection progressing on schedule; mill cranes on site, other equipment in transit 13

15 Brazil: Vega high added value capacity expansion High return mix improvement in one of the most promising developing markets Project summary: HAV expansion project to improve mix Completion expected 2021 with total capex spend of ~$0.3bn Increase Galv/CRC capacity through construction of 700kt continuous annealing and continuous galvanising combiline Optimization of current facilities to maximize site capacity and competitiveness; utilizing comprehensive digital/automation technology To enhance 3rd generation AHSS capabilities and support our growth in automotive market and value added products to construction AM Vega highly competitive on quality and cost, with strategic location and synergies with AM Tubarão Investment to sustain ArcelorMittal Brazil growth strategy in cold rolled and coated flat products to serve domestic and broader Latin American markets Strengthening ArcelorMittal s position in key markets as automotive and construction through value added products Potential to add >$100mn to EBITDA 3Yr investment to expand rolling capacity increase Coated / CRC capacity and construction of a new 700kt continuous annealing line (CAL) John and Deere continuous India galvanising combiline (CGL) 14

16 Votorantim consolidates our position in Brazil longs Multi-year acquisition project concluded in April 2018 Culmination of a multi-year process that began in 2014 Creating the new market leader in Brazil longs Consolidating the Brazil long products market ArcelorMittal now the #1 long products producer with annual crude steel capacity of 5.1Mt. Acquired production facilities are geographically complementary, enabling higher service level to customers, economies of scale, higher utilization and efficiencies. ~$110m of identified synergies on track to be fully captured in 2019 Sao Paulo Resende plant Minas Gerais Monelevade Juiz de Fora Rio de Janeiro Piracicaba Barra Mansa plant Resende Barra Mansa 15

17 ILVA project to turnaround and restore tier-1 status Multi-year acquisition project concluded in November 2018 Culmination of a multi-year process that began in 2014 Improvement plan now underway to: Increase production to 6Mt near term; then to 8Mt post completion of environmental plan Capture identified synergies ( 310m) and realise asset s potential Focus on: Health and safety: Top priority to improve H&S performance underway 1.15 Enviromental ILVA capex commitment through 2024 ( bn) 1.25 Industrial capex includes annual maintenance Industrial Total capex Riva funds utilised 2.10 Net capex Investment program underway: Coverage of the raw materials stockyards progressing in-line with the accelerated timetable Performance and operations: identify gaps with ArcelorMittal sites and take actions; adopt ArcelorMittal commercial approach Progress at the raw material stock yard Integration: use benchmarking 16

18 Essar: Adding a new high-growth pillar Essar brings scale, turnaround opportunity and growth optionality Essar provides ArcelorMittal an opportunity to buy a producing, profitable, cash generating asset at below replacement costs ArcelorMittal received approval for acquisition of Essar* Upfront payment of $5.7bn** to ESIL creditors with a further $1.1bn** capital injection into the business to kickstart turnaround Essar Steel main production facilities at Hazira, Gujarat; 10Mtpa nominal capacity (current production 6.5Mtpa) ArcelorMittal aims to increase shipments to 8.5Mt in medium term, with long term target of 12-15Mt through additional brownfield capacity expansion Iron ore pelletising integration in East India provides optionality: 14Mtpa pellet capacity currently being expanded to 20Mtpa ArcelorMittal & NSSMC to finance their India JV through combination of partnership equity (1/3) and debt (2/3) Investment in the India JV expected to be equity accounted High quality raw material Largest pellet capacity in India One of the largest single location for flat steel in India Complete basket of flat steel produtcs Service centres in competitive locations Access to Port * In-line with Essar Steel India Limited s (ESIL) corporate insolvency process, the Company s Resolution Plan must now be formally accepted by India s National Company Law Tribunal ( NCLT ) before completion **at 73.2 Indian rupees / $1. 17

19 OUTLOOK 18

20 Global steel demand Global Apparent Steel Consumption (ASC) growth of +0.5% to +1.0% forecast in 2019F Estimated ASC growth 2018 v 2017* Forecast ASC growth 2019F v 2018* US +1.7% US +0.5% to +1.5% EU % EU % to +1.0% China +3.5% China -0.5% to -1.5% Brazil +7.3% Brazil +3.5% to +4.5% CIS +1.8% CIS +1.0% to +2.0% Global ex China +2.1% Global ex China +2.0% to +3.0% Global +2.8% Global +0.5% to +1.0% Source: *ArcelorMittal estimates 19

21 EUROPE NAFTA BRAZIL INDIA ACIS Position to Deliver Value Global diversified industry leader focussed on maximising per-share value Unique global portfolio ArcelorMittal Industry leader in product and Secure position in mature developed markets (with growth exposure e.g. Mexico) with emphasis on HAV leadership High-growth, with attractive market structure and gradual evolution towards HAV Access to growth markets process innovation Action2020 plan to structurally improve profitability Investing with focus and discipline in high return opportunities Investment grade balance sheet Progressively returning cash Mining (capturing the full value-in-use chain) Investment Grade Balance Sheet 20

22 APPENDIX 21

23 Appendix SECTION 1 Cash needs.. 23 SECTION 2 Trade SECTION 3 Financials results SECTION 4 Steel investments.. 40 SECTION 5 Macro highlights.. 46 SECTION 6 Industry leadership. 49 SECTION 7 Auto. 54 SECTION 8 Group highlights

24 CASH NEEDS 23

25 Cash needs Cash needs* to increase in 2019 largely due to increased capex spend on high return opportunities Cash needs to increase to $6.4bn in 2019 The $1.4bn increase Vs reflects: 1) $1bn increase in capex (including $0.4bn carryover from 2018) 2) Cash taxes deferred from 2018 Below-EBITDA cash needs ($ billions) 5.0 Taxes**, pension and other ) Non recurrence of certain cash gains in 2018 Unplanned working capital investment in 2018 is expected to be released in 2019 As a result, Company should achieve more significant net debt progress in 2019 Net interest Capex F * Cash needs of the business consisting of capex, cash paid for interest and other cash payments primarily for taxes and excluding for these purposes working capital investment ** Estimates for cash taxes in 2019 largely reflect the taxable profits of

26 TRADE 25

27 EU trade Comprehensive solution for unfairly trade imports required Trade cases (Flat steel): All key flat rolled steel products Anti-dumping and countervailing duty cases have been implemented Monitoring for unfairly traded imports ongoing Safeguard duties: On January 17, 2019, EU Member states approved the European Commission s (EC s) final safeguard measures on steel with implementation to begin February 4, 2019 Final measures include immediate relaxation, increasing quota by 5% (calculated on base years of ), with further 5% relaxation in July 2019 and another 5% in July 2020, subject to review Final measure give country-specific quotas to main steel exporters to EU; remaining residual quote for other countries to be quarterly, however countries with own quota can consume residual quote once they have used up their own Certain 'developing' countries with a share of imports of <3% are exempt 26

28 NAFTA trade Comprehensive solution for unfairly trade imports required Trade cases: All key flat rolled steel products AD/CVD cases have been implemented. Anti-circumvention investigations initiated by DOC for CRC and CORE imports from China (through Vietnam); final affirmative determination received May 17, 2018 On June 12, 2018, the US industry filed anti-circumvention petitions with DOC for CRC and CORE imported from Korea and Taiwan (through Vietnam). Section 232 US: March 23, 2018: 25% tariffs imposed on all steel product categories began for most countries June 1, 2018: 25% tariffs imposed on steel products in Europe, Canada & Mexico (no change despite agreement on NAFTA as still awaiting Canada) with the following exceptions: South Korea: Quota of 70% of av. export volumes into US Brazil: Quota of average export volumes into US - 70% for finished products; 100% for semi-finished products Argentina: Quota of 135% of average exports Australia: completely exempt from tariffs and quotas August 30, 2018: Trump issued a proclamation whereby there is now a product exclusion request process in place for countries where there is a quota, i.e. S. Korea, Argentina and Brazil Turkey: duties doubled to 50% from 25% due to currency devaluation Canada and Mexico response to Section 232: Canada: 25% retaliatory tariffs on US imports for most steel products, Provisional safeguard measures announced on October 11, 2018 on 7 steel products (hot rolled, prepaint, rebar, wire rod, energy tubulars, plate and stainless wire) Mexico: 15-25% retaliatory tariffs on US imports for most steel products; Safeguard duties of 15% already in place for countries with no free trade agreement 27

29 FINANCIAL RESULTS 28

30 Operating results for 4Q 18 Quarterly results impacted by sequential seasonal slowdown and operational issues EBITDA: $2.0bn (-8.9% vs.4q 17); 12M 18 $10.3bn (+22.1% YoY) Steel performance lower QoQ: impacted by negative price-cost effect and lower steel shipments (-1.5%) to 20.2Mt Mining performance higher QoQ: Impacted by higher marketable iron ore shipments (+16.8% QoQ); 12M 18 at 37.6Mt (+5.5% YoY) Net income: at $1.2bn vs $0.9bn in 3Q 18 Working capital release of $0.4bn in 4Q 18 Net debt of $10.2bn as of Dec 31, 2018 as compared to $10.1bn as of Dec 31, EBITDA progression ($bn) -8.9% % 10.3 $102/t $133/t $96/t $99/t $122/t 4Q 17 3Q 18 4Q 18 12M 17 12M 18 Note: YoY refers to 12M 18 vs. 12M 17; QoQ refers to 4Q 18 v 3Q 18; 29

31 Steel performance for 4Q 18 Steel-only EBITDA increased YoY but declined QoQ (in all segments) 12M 18 steel-only EBITDA up +28.4% YoY primarily due to positive price-cost effect (PCE) with all segments improving 4Q 18 steel-only EBITDA down 34.3% vs. 3Q 18 ACIS: EBITDA down -55.7% Negative price-cost effect and lower shipments (operational issues in Kazakhstan) Brazil: EBITDA down -37.2% Negative price-cost effect NAFTA: EBITDA down -33.2% Lower steel shipments and negative price-cost effect Europe: EBITDA down -14.0% Performance primarily impacted by negative price-cost effect Steel only EBITDA ($bn) and EBITDA/t ($/t) -34.3% +28.4% $89/t $119/t $79/t $82/t $107/t 4Q 17 3Q 18 4Q 18 12M 17 12M 18 3Q 18 to 4Q 18 steel only EBITDA ($mn) 2, ,608 3Q 18 NAFTA Brazil Europe ACIS Others 4Q 18 Note: YoY refers to 12M 18 vs. 12M 17; QoQ refers to 4Q 18 v 3Q 18 30

32 Mining performance for 4Q 18 Mining profitability positively impacted by higher shipment volumes and iron ore prices Mining performance: 4Q 18 EBITDA improved 22% QoQ primarily due to higher market priced iron ore shipments (+16.8% QoQ) FY 18 EBITDA declined 9.2% YoY primarily due to weaker coal performance driven by lower volumes. Growth: Market priced iron ore shipments grew 5.5% in 2018 YoY Focus on quality: ongoing commitment on quality, service and delivery Cost focus maintained: FCF breakeven remains $40/t Mining EBITDA ($mn) +22% -9.2% ,407 1,278 3Q 18 4Q 18 12M 17 12M 18 Marketable iron ore shipments (Mt) +16.8% +5.5% Q 18 4Q 18 12M 17 12M 18 Note: YoY refers to 12M 18 vs. 12M 17; QoQ refers to 4Q 18 v 3Q 18 31

33 4Q 2018 EBITDA to net results Positive net income in 4Q 2018 BASIC EPS 4Q 18 ($million) Weighted Av. No. of shares (in millions) 1,014 Earnings per share $1.18 (723) Includes $0.1bn in currency translation gains following disposal of MacSteel Includes $0.8bn deferred tax benefits recorded mainly in Luxembourg on expected higher future profits 1,951 (215) (140) (556) 620 Related to acquisition of ILVA and ILVA remedies 1,042 Primarily MTM on MCB 573 1,193 EBITDA D&A Impairment net of purchase gains Exceptional items Operating income Income from investments Net interest expense Forex and other fin. result Pre-tax income Taxes and noncontrolling interests Net income 32

34 4Q 2018 EBITDA to free cashflow FCF positive $1.0bn ($million) 430 (211) (1,156) 1,951 2,170 1,014 EBITDA Change in working capital* Other financing costs Cash flow from operations Capex Free cash flow * Change in working capital: cash movement in trade accounts receivable plus inventories less trade and other accounts payable 33

35 3Q 18 v 4Q 18 Net debt Net debt declined September 30, 2018 vs. December 31, 2018 ($million) , Includes $0.1bn forex gain 10,516 Primarily includes $1bn investment for the Uttam Galva and KSS Petron debts, offset by MacSteel disposal ($0.2bn) 10,196 Net debt at Sept 30, 2018 Free cash flow M&A Minority dividends Forex and other Net debt at Dec 31,

36 FY 2018 EBITDA to net results Healthy net results for the full year 2018 BASIC EPS 2018 ($million) (2,799) (810) Include $0.6bn for acquisition of ILVA and ILVA remedies and remedy package required for Votorantim acquisition (117) 652 (615) Weighted Av. No. of shares (in millions) 1,015 Earnings per share $5.07 Includes income from Calvert and Chinese investees and Erdemir dividend Includes $0.8bn deferred tax benefits recorded mainly in Luxembourg on expected higher future profits 10,265 (1,595) 168 BF dismantling in Florange ($0.1bn); new CLA in US (including signing on bonus) ($0.1bn); settlement fees ($0.1bn); offset in part by $0.2bn PIS/Cofins tax credits in Brazil 6,539 Primarily forex and MTM on MCB partially offset by premium on early repayment of bonds 4,981 5,149 EBITDA D&A Impairment net of purchase gains Exceptional items Operating income Income from investments Net interest expense Forex and other fin. result Pre-tax income Taxes and noncontrolling interests Net income 35

37 FY 2018 EBITDA to free cashflow FCF positive $0.9bn despite $4.4bn investment in working capital in 2018 ($million) (4,384) 10,265 (1,685) 4,196 (3,305) 891 EBITDA Change in working capital* Other financing costs Cash flow from operations Capex Free cash flow * Change in working capital: cash movement in trade accounts receivable plus inventories less trade and other accounts payable 36

38 FY 2017 v FY 2018 Net debt Net debt stable - December 31, 2017 vs. December 31, 2018 ($million) ,142 10,196 Primarily includes $1bn investment for the Uttam Galva and KSS Petron debts, offset by MacSteel disposal ($0.2bn) and sale of tangibles assets ($0.2bn) Net debt at Dec 31, 2017 Free cash flow M&A ArcelorMittal Share buy back Dividend paid to AM shareholders Minority dividends Forex and other Net debt at Dec 31,

39 Liquidity and debt maturity Investment grade rated by all three rating agencies Liquidity at Dec 31, 2018 ($bn) Debt maturities at Dec 31, 2018 ($bn) 7.9 Other loans Cash Commercial paper Bonds Unused credit lines Liquidity at Dec 31, Liquidity lines $5.5bn lines of credit refinanced with 5 year maturity Dec 19, 2023 Debt Maturity: Continued strong liquidity Average debt maturity 4.0 years *Investment grade credit rating upgrades: S&P in February 2018, Moody s in June 2018 and Fitch in July 2018 Ratings*: S&P: BBB-, stable outlook Moody s: Baa3, stable outlook Fitch: BBB-, stable outlook 38

40 STEEL INVESTMENTS 39

41 Indiana Harbor - USA Footprint Footprint optimization complete Current configuration uncompetitive structural changes required across all cost elements #1 aluminize, 84 hot strip mill (HSM), #5 continuous galvanizing line (CGL), and steel shop No.2 now idled; all planned asset consolidation now complete Investments totalling ~US$200m: New caster at No.3 steelshop installed & commissioned 4Q 16 and restoration of 80 hot strip mill and IH finishing complete Project completed 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 40

42 Kryvyi Rih New LF&CC 2&3 Kryvyi Rih investments to ensure sustainability & improve productivity Facilities upgrade to switch from ingot to continuous casting route; additional billets capacity of 290kt/y Industrial target: Step-by-step steel plant modernization with state-of-art technology Product mix development Supportive target: Cost reduction Billet quality improvement for sustaining customers Better yield and productivity Project completion expected in 2019 Construction site of LF&CC 2&3 <-> 41

43 ArcelorMittal Poland Sosnowiec Wire Rod Mill Long products strategy to grow HAV Sosnowiec is a double strand rolling mill located in Sosnowiec, Poland. The investment will introduce new and innovative techniques for the production of high quality wire rod for high demanding applications (automotive app., steel cords, welding wires, cold heading screws, suspension springs, special ropes) Investment features and benefits: Splitting intermediate mill stands / new motors / drives avoiding twisting Modernized finishing blocks for rolling speed increasing up to 100m/s New state of art air distribution system and ring distributor New water boxes with accurate process control Reduced tensile strength variation, improved grain size/ surface quality Scope of equipment to be installed in WRM Sosnowiec in 2018: New guiding equipment for finishing blocks, new water boxes (traversing type), new laying heads (new type), new fans for air cooling conveyors, new air distribution system for fans, new automation control system for water boxes and fans (water and air cooling) Project completion expected in

44 Dofasco - Hot strip mill modernisation Investments to modernize strip cooling & coiling flexibility to produce full range of target products Replace existing three end of life coilers with two state of the art coilers and new runout tables. The strip cooling system will be upgraded and include innovative power cooling technology to improve product capability Benefits of the project will be: Improved safety Increased product capability to produce higher value products Cost savings through improvements to coil quality, unplanned delay rates, yield and improved energy efficiency PROJECT: HSMM DATE: OCTOBER 2018 IMAGE: COILER AND INSPECTION AREA CIVIL CONSTRUCTION Project completion expected in

45 Burns Harbour Walking beam furnaces Expands surface capability to provide sustained automotive footprint Install 2 latest generation walking beam furnaces, including recuperators & stacks, building extension & foundations for new units Benefits associated to the project: Hot rolling quality and productivity Sustaining market position Reducing energy consumption Project completion expected in

46 MACRO HIGHLIGHTS 45

47 Regional inventory Inventory levels in key regions in line with historical averages German inventories (000 Mt)* US service centre total steel inventories (000 Mt) (latest data point: Dec-2018) 1,400 Germany Stocks 1,200 Months supply (RHS) 1, ,000 11,000 9,000 7,000 5,000 (latest data point: Dec-2018) USA (MSCI) Months Supply (RHS) Brazil service centre inventories (000 Mt) China service centre inventories** (Mt/mth) with ASC% 1,400 Flat stocks at service centres Months Supply (RHS) (latest data point: Dec-2018) Flat and long (latest data point: Dec-2018) 50% 1, % 1, % 20% % % * German inventories seasonally adjusted **Source: WSA, Mysteel, ArcelorMittal Strategy estimates 46

48 Chinese exports Chinese exports declined 8% YoY to 70Mt in Exports of steel products Imports of steel products Net-trade (latest data point: Jan-2019) Jan 19 finished steel exports of 6.2Mt up +11.0% MoM (Dec 18 at 5.6Mt) Jan 19 exports up +33.1% vs Jan 18 (4.7 Mt) 12M 18 finished steel exports of 70Mt down 8.0% vs 12M 17 Source: ArcelorMittal Corporate Strategy team analysis 47

49 China addressing capacity issues Supply side reform progressing global overcapacity still a concern Chinese government committed to tackle overcapacity and environmental issues Capacity reduction target met: 140Mt capacity cut achieved by end of 2018 Steel replacement policy in favour of EAF v BF; no new capacity to be built ratio 1:1 for EAF and 1:1.25 for BF- BOF Industry operating at high rates of capacity utilisation higher domestic steel spreads Stronger domestic fundamentals plus global trade restrictions reduced incentive to export 3yr Blue Sky Campaign ( ) with stringent emissions standards Winter capacity constraints supporting fundamentals through seasonally weaker demand period; delayed start in 2018, but overall expectation that 2018/2019 policy will be broadly similar YoY Target achieved to cut 140Mt permanent capacity by end of 2018 Additional ~120Mt illegal induction furnace capacity closed Steel exports reduced 48

50 INDUSTRY LEADERSHIP 49

51 Leadership through innovation continues R&D strength to drive innovation and maintain industry leadership position Steligence : A radical new concept for the use of steel in construction Aims to deliver significant architectural and sustainability benefits to construction customers Awarded the Steelie in the Excellence in Life Cycle Assessment category in October 2018 Revolutionary technology in Carbon Capture & Utilization (CCU) to convert BF carbon gas into bioethanol In partnership with LanzaTech, 150m project in Gent, Belgium, broke ground Jun 18 with commissioning expected in mid 2020 Significant potential to revolutionize blast furnace carbon emissions capture and support decarbonization of the transport sector Automotive: Recognized leader by automotive customers Consistently ranked #1 in technology by the majority of OEMs Addressing automotive platforms of the future with new projects for rapidly growing Electric Vehicle (EV) market 50

52 Industry Leadership: Automotive Global leader in automotive steel and solutions 2018 R&D spend $0.3bn Automotive R&D ~1/3 of this budget 1,400 full time researchers 10 worldwide research centres in Europe / Americas including 6 dedicated to automotive Majority of OEMs in EU & NAFTA rank ArcelorMittal #1 in Technology Steel will remain key material for the body structure application Leader in AHSS* in both EU & NAFTA with the broadest portfolio of AHSS grades Achieved significant recognition from automakers for commitment to innovation, performance, quality and supplier diversity: (Ford; Honda R&D Americas Award; GM Supplier IMPACT Diamond Award; GM Supplier Quality Excellence for AM/NS Calvert; Nissan s Supplier Diversity Award; and Automotive News PACE Award Finalist for inner and outer door ring system in 2019 Acura RDX *AHSS: Advanced High Strength Steels World s first inner & outer door ring system a co-engineering feat between ArcelorMittal, Honda R&D Americas and Magna - unveiled at WCX18 for 2019 Acura RDX ArcelorMittal Tailored Blanks Division produced 2 millionth door ring on Oct. 26,

53 Industry Leadership: Steligence A radical new concept for the use of steel in construction Steligence is based on extensive scientific research, independently peer-reviewed Makes the case for a holistic approach to construction that breaks down barriers, encouraging collaboration between construction industry professionals Designed to resolve the competing demands of creativity, flexibility, sustainability and economics Delivers efficiencies, benefits and cost savings to architects, engineers, construction companies, real estate developers, building owners, tenants and urban planners Will facilitate the next generation of high performance buildings and construction techniques, and create a more sustainable life cycle for buildings Our new Headquarters building is designed to showcase the Steligence concept 52

54 Industry Leadership: Transformation technologies Technology to potentially revolutionise the capture of BF carbon gas and convert it into bioethanol 150million project between ArcelorMittal & LanzaTech in Gent, Belgium, broke ground June 2018 Technology to potentially revolutionise the capture of BF carbon gas and convert it into bioethanol Licensed by LanzaTech, a proprietary microbe feeds on carbon monoxide to produce bioethanol, to be used as transport fuel or potentially in the production of plastics Annual production of bioethanol from this demonstration expected to reach around 80m litres, which will yield an annual CO2 saving equivalent to 600 flights from London to New York The new installation will create up to 500 construction jobs over the next two years and 20 to 30 new permanent direct jobs. Commissioning and first production is expected by mid

55 AUTO 54

56 No1 in automotive steel: Maintaining leadership position Group continues to invest and innovate to maintain leadership ArcelorMittal is the global leader in steel for automotive with strongest position in Europe and North America Global R&D platform provides 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 Automotive business backed with capital with ongoing investments in product capability and expanding our geographic footprint: AM/NS Calvert JV: Enhancing our NAFTA automotive franchise VAMA JV in China: Auto certifications progressing Dofasco: Galvanizing line expansion Europe: AHSS investments S-in motion AM/NS Calvert 55

57 Global presence and reach Global supplier with increasing emerging market exposure Locations, by region Automotive production facilities Alliances & JV Commercial teams R&D centers Vehicle production 2018 by region > 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 & 0.1 M veh < 0.1 M veh Source: LMC figures for Western and Eastern Europe and Russia; IHS figures for all other regions; personal cars and light commercial vehicles < 6t NB: Middle East & North Africa region: Iran, Uzbekistan, Kazakhstan, Morocco, Egypt South East Asia region: Indonesia, Philippines, Thailand, Vietnam, Pakistan 56

58 Automotive growth in developed world North American production at healthy levels, EU28 & Turkey production with modest growth North America and EU28 + Turkey vehicles production million units North American production: - modest decline in the short term but still healthy production levels - expected to regain the 17m unit production level around 2022 driven by population growth, portfolio expansion and localization EU28 & Turkey production: modest growth expected with uncertainty linked to Brexit and US Tariffs 57

59 Automotive emerging market growth Strong growth expected in India, China and Brazil China vehicle production ( 000s) 35,000 China 33,000 31,000 29,000 33,940 China production to grow by ~26% by 2026 (from 27mvh in 2018 level 34mvh by 2026) 27,000 25,000 26,955 India production to increase ~70% by 2026 (from 4.8mvh in 2018 to 8.2mvh in 2026) Brazil, India & Russia vehicle production ( 000 s) 9,000 8,000 Russia India Brazil 7,000 6,000 5,000 4,754 4,000 3,000 2,000 2,748 1,000 1, ,230 3,952 2,395 Brazil production growth expected to continue and reach 3.9mvh in 2026 (~40%) Russia production is expected to recover and reach 2.4mvh in 2026 (~46%) Source: IHS 58

60 ArcelorMittal S-in motion Demonstrating the weight saving potential of new products ArcelorMittal generic steel solutions include BIW, closures, chassis parts and seats S-in motion ICE C-Segment S-in motion Electric C-Segment S-in motion Plug-in Hybrid C-Segment S-in motion D-Segment EU market S-in motion Mid-size Sedan NA market S-in motion Mid-size SUV S-in motion Light Commercial S-in motion Pick-up Trucks S-in motion Truck Cabs -70kg (-18%) vs current ICE baseline -60kg (-15%) vs current ICE baseline -50 kg (-16%) vs current PHEV baseline -98 kg (-25%) vs BIW and closures current baseline -86 kg (-23%) vs current Mid-size sedan baseline -102 kg (-20%) vs current SUV baseline -45kg (-20%) About 140 parts upgraded -174 kg (-23%) vs current Pick-up baseline -54 kg (-17%) vs current cab baseline Twist beam Suspension Control arms Front subframes Pick-up frame NA rear subframe Front seat Up to 17% of mass-savings for C-segment vehicles -4 kg (-18%) using flat and long products Up to 26% of potential weight-savings Up to 15% of mass-savings on C-segment vehicles -55 kg (-23%) vs current Pick-up frame baseline -5.9 kg (-20%) vs current D-segment baseline -2 kg (-18%) vs current C-segment seat baseline

61 Continuous innovation Steel to remain material of choice for automotive Jet Vapor Deposition (JVD) line : Jetgal JVD line is a breakthrough technology to produce Jetgal, a new coating for AHSS steels for automotive industry Steel remains material of choice New press hardenable steels (PHS) Usibor 2000 & Ductibor 1000 Bring immediate possibilities of 10% weight saving on average compared to conventional coated PHS produced by ArcelorMittal 3rd Generation AHSS products (CR/GI/GA) 980HF & 1180HF HF / Fortiform provide additional weight reduction due to enhanced mechanical properties compared to conventional AHSS Electrical steels icare, 2 nd Generation Family of electrical steels for electrified powertrain optimization and enhanced machine performance, Save*, Torque** and Speed*** are specifically designed for a typical electric automotive application. Electric vehicles (EV) to favour lightweight designs (similar to traditional vehicles) EV employ AHSS to achieve range goals The mass-market Tesla Model 3 body and chassis is a blend of steel and aluminium, unlike the Tesla Model S which is an aluminium body (Source: Tesla website+) * Save (Steels with very low losses): Ideal for the efficiency of the electrical machine. Their key role is maximize the use of the current coming from the battery. ** Torque (Steels with high permeability): They achieve the highest levels of mechanical power output for a motor or current supply for a generator *** Speed (Steels for high speed rotors): Specific high strength electrical steels which maintain high level of magnetic performance. They allow the machine to be more compact and have a higher power density

62 Continued investment in R&D Supports portfolio of next generation auto steels Fortiform HF Grades Third-generation UHSS for cold stamping. Fortiform and HF steel grades allow OEMs to realize lightweight high-strength structural elements using cold forming methods such as stamping. Commercially launched in Europe in 2014 and available in North America at Calvert MartINsite A family of cold rolled fully martensitic steels with current tensile strengths from 900 to 1700 MPa. ArcelorMittal s MartINsite cold roll family of fully martensitic steels is perfect for anti-intrusion parts such as bumper and door beams. Some are also available in with an electrogalvanized coating or with Jetgal. Usibor 2000 Ductibor 1000 Press hardenable steels (PHS) / hot stamping steels offer strengths up to 2000 MPa. Usibor 2000 and Ductibor 1000 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 is commercially available in Europe and available for qualification testing in North America; Ductibor 1000 is commercially available in Europe and North America 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. 61

63 2019 Chevy Silverado reduces weight and increases strength with AHSS Chevrolet claims its all-new 2019 Silverado is 450 pounds (204 kg) lighter, supported by extensive use of mixed materials. For example, a higher-grade alloy is used in the roll-formed, high-strength-steel bed floor, contributing to a bed that is more functional and lighter weight. The safety cage features significant use of advanced high strength steels, each tailored for the specific application. This use of mixed materials and advanced manufacturing is evident throughout the Silverado, resulting in a significant reduction in total vehicle weight and improved performance in many measures. Source: Chevrolet s press release about its all-new Silverado, December

64 Automotive Industry Leadership Audi switched back to steel for its new A8 model Audi switched back to steel for its 2018 A8 model, with a body structure made up of more than 40% steel including 17% PHS New Audi A model There will be no cars made of aluminium alone in the future. Press hardened steels (PHS) will play a special role in this development. PHS grades are at the core of a car s occupant cell, which protects the driver and passengers in case of a collision. If you compare the stiffness-weight ratio, PHS is currently ahead of aluminium. Dr Bernd Mlekusch, head of Audi s Leichtbauzentrum 63

65 Volvo XC European Car of the Year, makes use of AHSS and boron steels for safety Hot-formed boron steel accounts for 20% of the XC40 s total body weight The safety cage around the occupants of Volvo s new XC40 is almost entirely made from steel including hot-formed boron grades. The steel cage provides maximum occupant protection in all types of crash scenarios. Volvo Car Group President & CEO Håkan Samuelsson at the European Car of the Year award ceremony AHSS makes up most of the XC40 s safety cage [Images courtesy Volvo Car Group] 64

66 RAM pick-up truck 2019 Dodge RAM 1500 frame uses 98% high-strength steel New (Ram 1500) frame features 98% high-strength steel to improve durability, weight, and rigidity for improved handling. The new 2019 Ram includes 54% AHSS in the truck bed and cab, and 98% in the frame, and is credited with a 225 lb. (102 kg) weight savings overall, along with 25% fuel economy and 20% towing capacity improvements, Mike Manley, head of Ram brand during 2019 NAIAS press conference Source: RAM 1500 announcement 65

67 VAMA greenfield JV facility in China Well positioned to supply growing Chinese auto market State-of-the-art production facility capacity of 1.5Mt Well-positioned to serve growing automotive market VAMA has successfully completed homologation on UHSS/AHSS with most key auto OEMs Latest developments 2018: VAMA top products (Usibor 1500, Ductibor 500, DP980 and DP780) are approved by large number of end users and sold to Tier 1 stamper market. Overall positive progress in product development and homologation by auto OEMs. VAMA started series supply of exposed products since 2017Q4 VAMA received Best Supplier award from International & local stamper VAMA: Valin ArcelorMittal Automotive target areas and markets BYD, Changan, Suzuki, CFMA & FAW-VW Loudi Daimler & Nissan Beijing VAMA FAW-VW & BMW Geely, VW, GM, KIA, SAIC & Chery Shanghai Changfeng, Fiat, DPCA, Dongfeng, Honda, JMC & Suzuki SAIC, Toyota, GM, Honda, Nissan & BYD Guangzhou Furnace of CGL and CAL on both sides VAMA HQ in Loudi city, Hunan Province Central office in Changsha with satellite offices in proximity to decision making centers of VAMA s customers BYD: Build Your Dreams; CFMA: Changan Ford Mazda Automobile; SAIC: Shanghai Automotive Industry Corporation; JMC: Jiangling Motors Corporation 66

68 GROUP HIGHLIGHTS 67

69 Group performance FY18 v FY17 Improved performance driven by positive price-cost effect offset by lower volumes Crude steel production decreased by 0.6% to 92.5Mt with decreases in ACIS (- 11.3%, due to operational disruptions in Ukraine and Kaz.) and NAFTA (-3.9%, including BF reline delay in Mexico), offset in part by Brazil (+9.4%, scope effect of Votorantim) and Europe (2.1%, scope effect of ILVA). Steel shipments for FY18 were 83.9Mt, - 1.6% vs FY17, primarily due to lower steel shipments in ACIS (-10.3%) offset in part by Brazil (+5.8%, including Votorantim), NAFTA (+1.0%) and Europe (+0.2%, including Ilva offset by impact of a flood in Asturias (Spain), power outage in Fos (France) and slower ramp-up after BF reline in Poland). Steel shipments for FY18 excl. Votorantim (in 2Q18) and Ilva (in 4Q18) were 82.5Mt, -3.0% vs. FY17, driven by lower ACIS shipments (-10.3%) and Europe (-1.2%), offset in part by Brazil (+0.5%) and NAFTA (+1.0%). EBITDA ($ Millions) and EBITDA/t $102/t $133/t $96/t $99/t $122/t -28.5% 2,141 2,729 1,951 4Q17 3Q18 4Q18 Average steel selling price $/t -1.4% 8,408 10,265 FY % +13.5% FY18 Sales for FY18 increased by 10.7% to $76bn, primarily due to higher average selling prices (ASP) (+13.5%) offset in part by lower steel shipments (-1.6%) Impairment charges net of purchase gains for FY2018 were $810m (include $0.7b primarily related to Ilva and the remedy asset sales for the Ilva acquisition and Votorantim remedies). Exceptional items for FY18 were charges of $117m: $113m in charges related to a BF dismantling in Florange (France), $60m in charges related to the new collective labour agreement in the US (including a signing bonus), a $146m provision taken in 1Q18 in respect of a litigation case that was paid in 3Q18 offset in part by PIS/Cofins tax credits related to prior periods recognized in Brazil of $202 million. 4Q17 3Q18 4Q18 Steel shipments (000 t) -1.5% 20,996 20,538 20,236 FY17 FY18-1.6% 85,242 83,854 EBITDA up 22.1% primarily driven by improved operating conditions (positive pricecost effect), offset by the impact of lower market priced iron ore prices. 4Q17 3Q18 4Q18 FY17 FY18 68

70 Group performance 4Q18 v 3Q18 Performance declined primarily driven by lower volumes Crude steel production decreased by 2.2% to 22.8Mt with decreases in ACIS (- 16.4%, due to operational disruptions in Kazakhstan) and NAFTA (-12.2%, including BF reline delay in Mexico), offset in part by Europe (6.8%, scope effect of ILVA) Total steel shipments in 4Q18 were 1.5% lower at 20.2Mt primarily due to lower steel shipments in ACIS (-10.6%, impacted by operational issues in Temirtau, Kazakhstan), NAFTA (-6.2%) and Brazil (-1.4%), offset in part by a 4.0% improvement in Europe (due Ilva acquisition consolidated Nov 1, 2018). Excluding the impacts of Ilva, steel shipments were 4.2% lower as compared to 3Q18 Sales in 4Q18 declined 1.0% to $18.3bn primarily due to lower steel shipments (- 1.5%) and lower ASP (-1.4%), offset in part by higher market-priced iron ore shipments (+16.8%) EBITDA ($ Millions) and EBITDA/t $102/t 2,141 2,729 1,951 4Q17 $133/t $96/t $99/t $122/t 3Q % Average steel selling price $/t -1.4% 4Q18 8,408 10,265 FY % +13.5% FY18 Impairment charges net of purchase gains for 4Q18 and 3Q18 were $215m and $509m, respectively, and primarily relate to Ilva and the remedy asset sales for the Ilva acquisition Exceptional gains for 4Q18 were $29m primarily related to $202 million for PIS/Cofins tax credits related to prior periods recognized in Brazil, offset in part by $113m in charges related to a BF dismantling in Florange (France), and $60m related to the new collective labour agreement in the US (including a signing bonus). EBITDA declined 28.5% primarily due lower volumes Q17 3Q18 4Q18 Steel shipments (000 t) -1.5% 20,996 20,538 20, FY17 FY18-1.6% 85,242 83,854 4Q17 3Q18 4Q18 FY17 FY18 69

71 NAFTA performance 4Q18 v 3Q18 Performance declined due to lower steel shipments and negative price-cost effect Crude steel production decreased by 12.2% to 5.0Mt in 4Q18, primarily due to market slowdown and blast furnace reline delay in Mexico Steel shipments in 4Q18 decreased by 6.2% to 5.2Mt, primarily due to seasonality and weak market conditions in the US Sales in 4Q18 decreased by 9.5% to $4.9bn, primarily due to lower steel shipments and lower ASP -1.5% (flat products down -0.7% and long products down -4.0%) Exceptional charges for 4Q18 were $60m primarily related to the new collective labour agreement in the US (including a signing bonus) EBITDA in 4Q18 decreased by 33.2% to $496m, primarily due to lower steel shipment volumes and negative price-cost effect EBITDA ($ Millions) and EBITDA/t $57/t 292 Average steel selling price $/t -1.5% Q17 3Q18 4Q18 Steel shipments (000 t) $135/t $96/t $78/t $112/t % -6.2% 497 4Q17 3Q18 4Q18 1,703 FY % +1.0% 2,471 FY FY % FY18 5,150 5,512 5,173 21,834 22,047 4Q17 3Q18 4Q18 FY17 FY18 70

72 Improvement NAFTA leading producer with 28.1Mt /pa installed capacity 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 Note: IH Bar facility closed in June 2015; Georgetown wire rod facility closed in August 2015, Vinton and LaPlace sold in 2Q

73 Brazil performance 4Q18 v 3Q18 Performance declined primarily due to a negative price-cost effect Crude steel production increased by 1.0% to 3.2Mt in 4Q18 EBITDA ($ Millions) and EBITDA/t $112/t $144/t $92/t $91/t $134/t Steel shipments in 4Q18 decreased by 1.4% to 3.1Mt, driven by seasonally weak domestic demand Sales in 4Q18 increased by 15.5% to $2.4bn, due to the negative impact of hyperinflation accounting in Argentina in 3Q18 (recorded as a nine-month year-to-date accumulated impact), offset in part by lower ASP (-3.7%) and lower steel shipments (-1.4%). Exceptional gain for 4Q18 was $202m related to PIS/Cofins tax credits related to prior periods recognized in Brazil. EBITDA in 4Q18 decreased by 37.2% to $280m, primarily due to a negative price-cost effect. 4Q18 includes a one-time provision of $17 million for employee related charges in Brazil % Q17 3Q18 4Q18 Average steel selling price $/t -3.7% Q17 3Q18 4Q18 Steel shipments (000 t) -1.4% +55.4% 1, FY17 FY % FY17 FY % 3,052 3,097 3,053 10,840 11,464 4Q17 3Q18 4Q18 FY17 FY18 72

74 Improvement Brazil Brazil leading producer with 13.3t /pa installed capacity Crude steel achievable capacity (million Mt) Geographical footprint and logistics % Flat Flat 54.0% Monlevade Long 1.4 Long 46.0% Tubarao Votorantim Juiz de Flora Brazil Argentina Brazil Vega 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. Note: The figures in the tables do not reflect Votorantim scope inclusion net of remedy assets sold - this change will be updated at 2018 year end. 73

75 Europe performance 4Q18 v 3Q18 Performance declined primarily due to negative price cost effect Crude steel production increased by 6.8% to 11.6Mt in 4Q18, primarily due to the consolidation of Ilva (as from Nov 1, 2018) Steel shipments in 4Q18 increased by 4.0% to 10.1Mt, primarily on account of the consolidation of llva, offset in part by weak market conditions (particularly in long products). Steel shipments declined by 1.7% excluding the impact of Ilva. Sales in 4Q18 were $9.8bn, 2.1% higher vs. 3Q18, with higher steel shipments, offset in part by 0.6% lower ASP. Impairment charges net of purchase gains for 4Q18 of $215m primarily related to acquisition of ILVA and ILVA remedies. Exceptional charges for 4Q18 were $113m related to a blast furnace dismantling in Florange (France). EBITDA in 4Q18 decreased by 14.0% to $749m as compared to $871m in 3Q18, primarily due to negative price-cost effect. EBITDA ($ Millions) and EBITDA/t $85/t Average steel selling price $/t Q17 3Q18-0.6% Steel shipments (000 t) $90/t $74/t $87/t $93/t -14.0% Q17 3Q18 4Q % 4Q18 3,560 3,810 FY % +0.2% FY FY % FY18 10,151 9,709 10,098 40,941 41,020 4Q17 3Q18 4Q18 FY17 FY18 74

76 Improvement Europe Leading producer with ~53.0Mt /pa installed capacity Crude steel achievable capacity (million Mt) Geographical footprint and logistics ~ 53.0 Flat Flat 100.0% 73.0% Dunkirk Bremen Duisburg Ghent Liège Florange Hamburg EHS Belval; Differdange Dabrowa Krakow Zenica Asturias Fos Long Long 27.0% Ilva Europe Number of facilities (BF and EAF) EUROPE No. of BF No. of EAF Flat (*) 20 5 Long 5 8 Total (*) EUROPE facilities Flat Long Flat and Long (*) Excludes 2BF s in Florange The map is showing primary facilities excl. Pipes and Tubes. ILVA in Italy consolidated from Number of BF/EAF table and crude steel achievable capacity currently exclude ILVA and include ILVA remedy assets. Details to be updated once the F filed Note: Following merger clearance granted by EC on May 7, 2018 for the companies acquisition if ILVA in Italy, the Company has committed to dispose of assets in the divestment package in Italy, Romania, Macedonia, Czech Republic, Luxembourg and Belgium). The deal is expected to be concluded September 15,, 2018 an as such not reflected in the map or figures represented on the slide (to be updated as part of the full year 2018 reporting). 75

77 ACIS performance 4Q18 v 3Q18 Performance declined due to lower steel shipments and negative price-cost effect Crude steel production in 4Q18 decreased by 16.4% to 3.0Mt, primarily due to an explosion at a gas pipeline at Temirtau (Kazakhstan) Steel shipments in 4Q18 decreased by 10.6% to 2.7Mt, primarily due to lower steel shipments in Kazakhstan following the incident discussed above. Sales in 4Q18 decreased by 11.3% to $1.8bn, primarily due to lower ASP (-6.0%) and lower steel shipments (-10.6%) EBITDA in 4Q18 decreased by 55.7% to $198m, primarily due to a negative price-cost effect and lower steel shipments EBITDA ($ Millions) and EBITDA/t $130/t $150/t $74/t 78/t $120/t -55.7% Average steel selling price $/t -6.0% 198 4Q17 3Q18 4Q ,027 1,405 FY % +16.1% FY Q17 3Q18 4Q18 FY17 FY18 Steel shipments (000 t) -10.6% -10.3% 3,254 2,986 2,669 13,094 11,741 4Q17 3Q18 4Q18 FY17 FY18 76

78 ACIS leading producer with 19.7Mt /pa installed capacity 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 The map is showing primary facilities excl. Pipes and Tubes. ACIS facilities Flat Long Flat and Long 77

79 Mining performance 4Q18 v 3Q18 Improved performance primarily due to higher market-priced iron ore shipments (+16.8%) and higher seaborne iron ore reference prices (+7%) EBITDA ($ Millions) and EBITDA/t Own iron ore production in 4Q18 increased by 3.4% to 14.9Mt, due to higher volumes in AMMC, Kazakhstan and Liberia (impacted by heavy rains in 3Q18), offset by lower production in Mexico +22.0% % 1,407 1,278 Own iron ore production for FY18 increased by 1.9% as compared to FY17 primarily due to Liberia, offset in part by lower production in AMMC (lower yield from a new mix of ore bodies following a pit wall instability issue which first occurred in 4Q17) and Mexico 4Q17 Iron ore (Mt) 3Q18 4Q18 FY17 FY18 Market-priced iron ore shipments in 4Q18 increased by 16.8% to 10.0Mt, primarily driven by higher market-priced iron ore shipments in Liberia (recovery following handling/logistic constraints impacting 3Q18 volume for the new Gangra product during the wet season) and AMMC Market-priced iron ore shipments for FY18 grew in line with expectations at 5.5% vs. FY17 Own coal production in 4Q18 decreased by 11.8% to 1.3Mt primarily due to lower Kazakhstan production. Market-priced coal shipments in 4Q18 were stable at 0.7Mt vs. 3Q18 EBITDA in 4Q18 increased by 22.0% to $343m, primarily due to the impact of higher market-priced iron ore shipments (+16.8%) and higher seaborne iron ore reference prices (+7%) Q17 3Q18 4Q18 FY17 FY18 Coal (Mt) Q17 3Q18 4Q18 Own production Shipped at market price FY17 Shipped at cost plus 3.3 FY18 78

80 A global mining portfolio Addressing Group steel needs and external market Key assets and projects Canada Baffinland ~30% Bosnia Iron Ore 51% Ukraine Iron Ore 95.13% USA Iron Ore Minorca 100% Hibbing 62.31%* USA Coal 100% Canada AMMC 85% (1) Kazakhstan Coal 8 mines 100% Kazakhstan Iron Ore 4 mines 100% Iron ore mine Coal mine Mexico Iron Ore Las Truchas & Volcan 100%; Pena 50%* Brazil Iron Ore 100% Liberia Iron Ore 85% * Includes share of production 1) ArcelorMittal entered into an agreement to sell 15% of its stake in AM Mines Canada to a consortium lead POSCO and China Steel Corporation (CSC). 2) New exploration projects, Indian Iron Ore & Coal exploration, Coal of Africa (9.71%) is excluded in the above. 3) On Jan 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,

81 ARCELORMITTAL IR APP AND CONTACTS Daniel Fairclough Global Head Investor Relations Hetal Patel UK/European Investor Relations Maureen Baker Fixed Income/Debt Investor Relations Lisa Fortuna US Investor Relations lisa.fortuna@arcelormittal.com Donna Pugsley Investor Relations Assistant Donna.pugsley@arcelormittal.com We have released an ArcelorMittal investor relations app available free for download on IOS or android devices