Global Resources conference Hetal Patel, Investor Relations General Manager Valérie Mella, Investor Relations Specialist London, March 7, 2018

Transcription

1 Global Resources conference 2018 Hetal Patel, Investor Relations General Manager Valérie Mella, Investor Relations Specialist London, March 7, 2018

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 Positioned to deliver value Material improvement in results, reflecting strengthening market backdrop Transformed balance sheet, with continued deleveraging bias Unique global portfolio of competitive well-invested assets Industry leader in product and process innovation Action 2020 continues to structurally improve profitability Investing with focus and discipline Reinstating base dividend with intention to increase capital returns Capital allocation policy to maximise value for shareholders 2

4 Safety is our priority Health & Safety Lost time injury frequency (LTIF) rate* Mining & steel, employees and contractors 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 3

5 Significantly improved results EBITDA +34.4% YoY to $8.4bn Steel shipments +1.6% YoY to 85.2Mt Marketable iron ore shipments +6.1% YoY Net income % YoY to $4.6bn Working capital investment of $1.9bn reflecting stronger markets Free cash flow* $1.7bn ($2.1bn excluding bond premia**) Net debt down to $10.1bn (despite $0.7bn FX headwind) Significantly improved results * Free cash flow refers to cash flow from operations less capex; ** includes one-time premium paid on early repayment of debt totalling $389m 4

6 2017 operating performance highlights EBITDA ($ billion) Europe: EBITDA +42.3% to $3.6bn Shipments +1.7% to 40.9Mt EBITDA per tonne +39.8% to $87/t BRAZIL: EBITDA +13.5% to $1.0bn Shipments +0.8% to 10.8Mt EBITDA per tonne +12.6% to $91/t NAFTA: EBITDA -0.9% to $1.7bn Shipments +2.6% to 21.8Mt EBITDA per tonne -3.4% to $78/t ACIS: EBITDA +51.4% to $1.0bn Shipments -1.3% to 13.1Mt EBITDA per tonne +53.4% to $78/t Mining: EBITDA +84.7% to $1.4bn Market-priced iron ore shipments +6.1% to 35.7Mt FCF breakeven level remains at $40/t CFR China 62% Fe 34.4% FY14 FY15 FY16 FY to 2017 EBITDA by segment ($ billion) FY16 NAFTA ACIS Europe Brazil Mining FY17 EBITDA impacted by improved ASP, steel volumes and Mining profitability 5

7 Delivering on Action 2020 Action 2020 impacted 2017 EBITDA by $0.6bn Volume improvements of $0.3bn and cost/mix $0.3bn Action 2020 cumulative EBITDA progress ( Target) ($billion) 3.0 Europe: Transformation progressing well savings in procurement/ productivity on track. More integrated centrally co-ordinated approach, further reducing costs Enhanced use of digitalisation in the manufacturing process, supply chain and commercialisation NAFTA: Asset optimisation complete; savings from No 2 steel shop idling; headcount rationalisation; Calvert utilisation increasing to 88% Target Brazil: HAV mix improvement ACIS: Kazakhstan record steel production; Ukraine savings from new coke oven battery No.6 Mining: Remained focussed on service, quality and asset reliability. FCF breakeven level of $40/t China CFR 62% Fe Action 2020 driving structural EBITDA improvement 6

8 Continuous innovation 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 CR980HF & CR1180HF 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+) Steel to remain material of choice for automotive * 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. - 7

9 Business outlook remains favourable ArcelorMittal Global PMI* ArcelorMittal demand forecasts US EU28 China +1.5% to +2.5% +1.0% to +2.0% -0.5% to +0.5% Brazil +6.5% to +7.5% CIS +2.0% to +3.0% (latest data point: Jan-2018, 56.0) Global Ex China +3.0% to +4.0% Global +1.5% to +2.5% Strong global economic fundamentals support further expected steel demand expansion in 2018 * ArcelorMittal estimates 8

10 Transformed balance sheet Net Debt ($bn) % Net debt lowest since merger Investment grade rated (S&P) Interest costs declined by ~56% since 2012 Debt adjusted FCF ($bn) FCF* Debt Adjusted FCF** Maximising ability to translate EBITDA to FCF $3bn cumulative FCF since 2012 increases to $8bn adjusting for 2018F cash interest expense Maintain investment grade rating (through the cycle) * Free cash flow refers to cash flow from operations less capex; ** Debt adjusted FCF refers to historical FCF adjusted to reflect 2018 forecast interest expense of $0.6bn 9

11 Building the strongest platform for consistent capital returns to shareholders Disciplined capital allocation Robust balance sheet Targeting $6bn net financial debt (NFD) Positive FCF* in all market environments** Investment grade metrics secure through the cycle Lower cost balance sheet Maximise FCF potential Position of strength to return capital to shareholders Invest in strengths Investing in opportunities with focus and discipline To grow EBITDA and enhance future returns Grow FCF potential of the business Returns to shareholders Reinitiating base dividend at $0.10/share Capital returns to shareholders will increase to a portion of FCF once NFD target achieved Deleveraging bias to continue until net debt target achieved * Free cash flow refers to cash flow from operations less capex ** Refers to the post merger period 10

12 Focused investment Capex in 2018 ($ billion) Italy: Restore ILVA as leading Italian steel supplier Primarily steel projects focusing on downstream optimisation in Europe and HAV in Canada & Europe Underperforming asset requiring turnaround Expanded product range with new HAV steel grades Synergies 310m of which 50m to benefit ArcelorMittal s existing operations investment of ~$300m for environmental capex (full year basis) Subject to regulatory approvals Mexico: $1.0bn three-year investment for construction of a new 2.5Mt HSM High value return project improved HAV mix FY carry over ILVA & Mexico Various strategic projects Forex FY18F Capex investment of ~$350m in 2018 commenced Increase capability to serve domestic Mexican industry Capitalising on high-return opportunities; Capex increasing to $3.8bn in

13 Positioned to deliver value Strategy delivering ~50% of Action 2020 delivered Transformed balance sheet Industry outlook improving Investing with focus & discipline Net debt / EBITDA down to 1.2x Deleveraging to continue Ex-China demand growth expected to continue Global capacity utilization improving Leveraging strengths to grow returns Building the strongest foundations for sustainable value creation Commitment to return cash to shareholders Dividends restarted Capital allocation policy to maximise value for shareholders 12

14 Section 1 APPENDIX

15 Sustainable development - key to our resilience Embedding 10 sustainable development (SD) outcomes into the business gives us long term view of risks and opportunities. We intend to publish our third step towards integrated reporting in April 2018 an integrated assessment of sustainable development within the ArcelorMittal group business in the short, medium and long term Customers increasingly expect us to support their sustainability ambitions. We have made good progress in 2017 with multiple stakeholders towards a comprehensive third-party certification system (ResponsibleSteel ) to reassure steel customers of social and environmental standards in their supply chains. We are preparing a number of European sites to comply. We are assessed and included in a number of sustainability leadership indices: Leadership in our response to long term trends 14

16 Key trade case update: EU & US Europe Flat, Long and Tubes Prod Exporter Status Timeline CRC HRC AD China Russia AD China CVD China Definitive measures and retroactive implementation were voted in favour on July 7: China: 19.8% to 22.1%, Russia: 18.1% to 35.9% 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 final measures approved 9 th June 2017 Measures in place for the next 5 years US Flat Rolled Prod Exporter Status Timeline Core CRC AD/CVD China India Italy Korea Taiwan AD/CVD Brazil China India Korea AD only Japan UK DOC final determination: CVD: China: %, India: 8% %; Italy: %; Korea: %; Taiwan de minimus (no duty imposed) AD: China %; India %; Italy %; Korea %; Taiwan: 3.77% ITC voted affirmative on all countries orders issued 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 Brazil, China, India, Korea, Japan and UK orders issued ITC voted negative on Russia AD and CVD - no orders will be issued Measures in place for the next 5 years Measures in place for the next 5 years CRS (HDG non auto) QP Notes: AD Iran, Ukraine, Russia & Brazil AD China AD China AD (5 Cs) Investigation started July 7, 2016; the European Commission announced in Oct 17 fixed AD duties on imports of HRC (duties from 17.6/t to 96.5/t) from Brazil, Iran, Ukraine and Russia (Serbia excluded) Initiation of investigation in December 2016; final duties against China announced Dec 17 (duties from 17.2% to 27.9%) AD Provisional measures published on Oct 17 - duties from 65% to 74% AD final measures voted in favour on the 10 Feb 2017 same level as provisional measures Timelines provided are defined based on regulation maximum limits Provisional AD duties vs Rebar LF from Belarus published 19 Dec at 12.5% Provisional AD duties vs Seamless tubes (large diameter) from China published 11 th Nov from 45.4% to 81.1% HRC QP AD/CVD Korea Brazil AD only Australia Japan Netherlands Turkey UK AD/ CVD China Korea AD Austria Belgium Brazil France Germany Italy Japan South Africa Turkey Taiwan DOC final determination: CVD: Brazil: 11.09%-11.30%; Korea: 3.89% % 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 orders issued; the ITC voted negative on Turkey CVD no order issued DOC final determinations for cooperating countries: CVD: China: %; Korea 4.31% AD: Austria: 53.72%, Belgium: 5.40%-51.78%, Brazil: 74.52%, China: 68.27%, France: 8.62% %, Germany: 5.38%-22.90%, Italy: 6.08% %, Japan: 14.79%-48.67%, Korea: 7.39%, South Africa: 87.72% %, Taiwan 3.62%- 6.95%, Turkey: 42.02%-50% ITC voted affirmative on all countries Brazil, S. Africa and Turkey orders issued 26 Jan 17; China order issued 20 Mar 17; all others issued May 26 Measures in place for the next 5 years Measures in place for the next 5 years 15

17 Trade case: Ongoing focus Anti-Dumping (AD) and Anti Subsidy (AS) duties are in place on all four flat product categories: CORE, CRC, HRC, and plate from key importing countries measures in place for five years from determination US Anti-circumvention investigations initiated by the Department of Commerce (DOC) for CRC and CORE imports from China (through Vietnam). DOC affirmative preliminary determination announced Dec 6, Importers will be required to post cash deposits for potential AD/CVD duties. Final determination expected April 25, 2018 Section 232: Initiation of a national security investigation with respect to steel imports (Apr 17). President Trump announced his intention on March 1, 2018 to implement 25% tariffs on steel imports into the US (formal confirmation due mid Mar 18). Final AD duties on CRC imports from China & Russia Final AD duties on HRC & QP imports from China approved Feb 10, 2017 Europe AS AD on HRC imports from China EU Council approved June 9, 2017, (duties aligned under the Lesser duty rule with the AD duties to final level from 18.1% to 35.9%) AD on HRC imports from four additional countries the European Commission announced in Oct 17 fixed AD duties on imports of HRC (duties from 17.6/t to 96.5/t) from Brazil, Iran, Ukraine and Russia (Serbia excluded) AD investigation started in December 2016 on imports from China of Corrosion resistant steel (HDG non-auto) final duties against China announced Dec 17 (duties from 17.2% to 27.9%) 16

18 Action 2020 Progress;$1.5bn achieved to date, half way to $3.0bn target Business Drivers 2016 progress 2017 progress AMERICAS - Ramp-up of Calvert improved value added mix - US footprint optimization - Brazil value plan US footprint optimization underway* Calvert utilisation rate 79% Portfolio optimized (Sale of LaPlace and Vinton, closure of Point Lisas) Indiana Harbor footprint optimization completed: Headcount rationalization and efficiencies following closure of its 84 HSM, idling of No.2 steel shop, benefits of new caster No.3 steel shop. Calvert ramp up: cap. utilization (+10% YoY***). EUROPE - Transformation program Procurement, reliability & productivity savings on track Centralisation of key processes underway Portfolio optimized (closure Zumarraga, partial shut down Sestao & Zaragoza sale) Integrated centrally coordinated approach, reducing costs Digitalization in the manufacturing process, supply chain & commercialization. Volume gains & improved mix with higher HSM production offset lower volumes (longs) ACIS - New coke battery and PCI usage in CIS - New iron ore supply agreement and tariffs in South Africa Capturing benefits of currency devaluation and good operational performance in CIS Quarterly production records achieved in the CIS (Combined Ukraine & Kazakhstan production up +6.7% YoY**) Ukraine: Construction of new coke oven battery #6 & PCI/energy savings Record production in Kazakhstan offset by lower shipment volumes in Ukraine MINING - 10% reduction in average unit iron ore cash costs 10% YoY** reduction achieved Cash breakeven level - $40/t CFR China 62% Fe maintained 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 *** refers to FY 17 v FY 16 17

19 Section 2 FINANCIALS

20 Cash needs of the business Cash needs of business ($ billion) 4.4 Taxes**, pension and other 0.8 Net interest 0.8 Capex F Cash needs* to rise in 2018: Increase of $1.2bn vs reflects a) higher CAPEX (increase from $2.8bn to $3.8bn largely reflecting Mexico project and anticipated ILVA capex) b) expected increases in cash taxes primarily on account of timing impacts Working capital requirements to be driven by market conditions ArcelorMittal remains focussed on controlling its cash requirements * Cash needs of the business defined as: capex, net interest, cash taxes, pensions and other cash costs but excluding working capital investment ** Estimates for cash taxes in 2018 largely reflect the taxable profits of

21 Liquidity and debt maturity profile Liquidity at Dec 31, 2017 ($ billion) 8.3 Debt maturities at Dec 31, 2017 ($ billion) Other loans Commercial paper Bonds Cash Unused credit lines Liquidity at Dec 31, 2017 Liquidity lines: $5.5bn lines of credit refinanced and extended in Dec 2016; two tranches: $2.3bn matures Dec 2019 $3.2bn matures Dec * Debt maturity: Continued strong liquidity Average debt maturity 4.6 Yrs >2023 Ratings: S&P**: BBB-, stable outlook Moody s: Ba1, positive outlook Fitch: BB+, positive outlook Investment grade credit rating achieved The 2018 maturities in other loans include an additional $298 million of a borrowing base facility in South Africa, which matures in 2020, ** S&P upgrade on 1 Feb 18 20

22 Balance sheet structurally improved Net debt* ($ billion) Average debt maturity (Years) Q Q Q Q 2017 Liquidity** ($ billion) Bank debt as component of total debt (%) % % 3Q Q Q Q 2017 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 excluding back-up lines for commercial paper program 21

23 EBITDA to free cash flow 2017 EBITDA to free cash flow analysis ($ million) (1,873) Includes $0.4bn bond premium (1,972) 8,408 4,563 (2,819) 1,744 EBITDA Change in working capital* Net financial cost, tax and others Cash flow from operations Capex Free cash flow Strong free cashflow generation * Change in working capital: cash movement in trade accounts receivable plus inventories less trade and other accounts payable 22

24 Net debt analysis Dec 31, 2016 to Dec ($ million) Forex of $715m: Mainly driven by USD depreciation against the Eur 13.8% (1,744) ,059 (72) 141 Mainly dividends paid to Posco (AMMC) and Bekaert 10,142 Net debt at Dec 31, 2016 Free cash flow M&A * Dividend Forex and other Net debt at Dec 31, 2017 Net debt reduction driven by positive free cash flow offset in part by forex *On August 7, 2017 ArcelorMittal USA and Cliffs Natural Resources ( Cliffs ) agreed that Cliffs would acquire ArcelorMittal USA s 21% ownership interest in the Empire Iron Mining Partnership for $133m plus assumptions of all partnership liabilities. The payment of the $133m will be in 3 equal instalments with the 1st payment in August 2017 ($44m), with the 2 subsequent payments to be received in August 2018 and

25 Section 3 ILVA

26 New ILVA a tier 1 steel asset ILVA is the perfect opportunity for ArcelorMittal Italy is the 2nd largest steel consuming country in Europe (Mt) Large scale, underperforming asset requiring turnaround Significant cost improvement potential and synergies identified Opportunity to leverage AM strengths in R&D and product leadership and service Ilva will be re-established as a tier one supplier to European & Italian customers Minimal balance sheet impact, EBITDA accretive in Year 1 Next step is regulatory approvals; European Commission initiated a Phase II review on 8 Nov 17; regulatory approval expected conclusion April 2018 Genova: Cold rolling, hot dip galvanising and tin plate capacities ILVA is a strong fit within ArcelorMittal s existing business & strategy SOURCE: World Steel, Steel Statistical Yearbook 2015; Notes: *Iberia defined as Spain + Portugal Novi Ligure: Cold rolling mill to serve end-users customers (e.g. packaging, white goods) 97Mt Total European Flat Steel demand in 2015 Taranto Taranto: Integrated plant for production and sale of HRC, plates, pipes and tubes 25

27 Our vision for ILVA ILVA Today Significant environmental issues need to bring ILVA up to and beyond EU environmental standards Industrial challenge: investment and expertise to improve operational performance of ILVA s assets Poor financial performance: material decline in revenue since 2011, lossmaking for the past 4 years Low share of high-value added steels in the portfolio of ILVA Need to rebuild client confidence: product quality, innovation, supply chain ILVA s Future Become a world-class player in terms of competitiveness, sustainability, environmental performance, value-add Leading presence in Italy, adding value to the Italian industrial fabric A company recognised for environmental performance excellence: emissions to be reduced to best practice levels, in line with and beyond European environmental standards and legislation A sustainably profitable company: one that creates value for all stakeholders, and the Italian economy A clear vision of long-term, sustainable success for ILVA 26

28 Investment plan to revitalise ILVA CAPEX commitments through 2024 ( bn) bn environmental investment plan to materially improve performance, including: 0.3bn stock pile coverage bn investment at coke ovens 0.2bn in waste water treatment bn environmental remediation (clean-up) which will be financed with funds seized from the Riva Group bn industrial investment plan to rapidly restore and improve: catch-up capex for delayed maintenance Industrial Environmental Total CAPEX Riva Funds utilised Net CAPEX capex program for blast furnaces and steel plants includes full 0.2bn re-vamping of BF#5 Commitment to invest 2.4 billion over the next 7 years 27

29 Industrial plan to restore ILVA s market position Operating BF#1, BF#2, BF#4 supplemented by imported slabs/coils Restart BF#5 alongside, BF#1, BF# Production (Mt crude steel) Shipments (Mt finished steel) Crude steel production is limited to 6Mt until environmental capex plan completed 28

30 ILVA impact on ArcelorMittal financials Acquisition will complete following receipt of EU Merger Regulation approval; European Commission initiated a Phase II review on 8 November 2017 with expected conclusion in April 2018 Following completion ArcelorMittal will fully consolidate ILVA Purchase price of 1.8bn, will be recognized on the BS as a payable, reduced by the quarterly instalments of 45mn that will flow through investing activities in CF New ILVA will be transferred with circa 1bn of net working capital and free of long term liabilities and financial debt New ILVA will be transferred to ArcelorMittal with a re-calibrated labor force ArcelorMittal will immediately commence the environmental capex plan and other investments ILVA is expected to be accretive to ArcelorMittal EBITDA in Year 1 and accretive to ArcelorMittal cash flow in Year 3 (based on 2016 steel spreads) On completion ILVA will be fully consolidated by ArcelorMittal 29

31 Section 4 STEEL INVESTMENTS

32 Investments completed in 2017 Furthering our downstream capabilities for automotive and industrial applications Calvert: Phase 2: Slab yard expansion Bay 5 Increase coil production from 4.6mt/pa to 5.3mt/pa (completed 2Q 17) Calvert: Slab Yard bay 5 Dofasco: increased shipments of galvanized sheets by ~130ktpy, along with improved mix and optimized cost (completed 2Q 17) Poland: Investment in the downstream operations: Increase of the HSM mill capacity by 0.9Mtpa (completed 2Q 17) Increasing the HDG capacity by 0.4Mtpa (completed 2Q 17) Dofasco galvanizing line HDG2 Krakow Continuous shift towards higher added value products 31

33 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) 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 completion in 1Q 18 Liège: 1st step of annealing line transformation (cooling zone) - completed 3Q 15 JVD 1st trial coils were produced in 3Q 16 Second step of annealing line transformation - completed 1Q 17 Remaining process optimizations & modifications on CAL expected completion in 1Q 18 Top rolls of new direct flaming furnace - Liege New stand F1 in front of line Gent HSM Cooling water plant - Gent Investments to enhance UHSS capabilities 32

34 ArcelorMittal Differdange: Investing in Grey mill: Modernization of rolling mill ArcelorMittal Differdange Grey Mill (Luxembourg) ranks among the leader for heavy and jumbo beams. It produces a unique portfolio of heavy sections. Contribute to some of the most prestigious landmarks over the world (ie. Manhattan skyline in New York) Aim to supply the most advanced structural steel products and solutions for construction and high rise buildings We are installing the largest straightener in the world for sections in Luxembourg Investment features: new cooling bed; new cold saw; new gag press Customer benefits: Indiana Harbor Plant improved service in terms of lead time and reliability highest quality for the most demanding grades & largest sizes thanks to improved straightness and surface quality Expected completion in 1Q 2018 Freedom Tower- New York No. 3SP: New #2 Caster Roller straightener in pre-assembly stage Improving and growing high added value products One Bank street construction: October 2017, U.K One Bank street after completion in

35 Kryvyi Rih - New LF&CC 2&3 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 4Q 18 AM Kryvyi Rih LF&CC 1 Site preparation for LF&CC 2&3 Entry section o Continuous Annealing Line Kryvyi Rih investments to ensure sustainability & improve productivity < > 34

36 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), #5 continuous galvanizing line (CGL), and steel shop No.2 now idled; all planned asset consolidation now complete Planned investments totalling ~US$200m: New caster at No.3 steelshop installed & commissioned 4Q 16 Restoration of 80 hot strip mill and 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. 3SP: #2 Caster New commissioning Downcomer ArcelorMittal USA progressing with a footprint optimization project at Indiana Harbor 35

37 ArcelorMittal Poland Sosnowiec - Wire Rod Mill modernization 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) Detailed engineering for the installation of the new equipment is expected in 1H 2018 Full project completion expected in Investment features and benefits: New independent stands with motors & drives avoiding material twisting Modernized finishing blocks for improvement of final product diameter tolerance New state of art air & water cooling system with accurate process control Project implementation will result in increased production of high quality wire rod for demanding applications. Long products strategy to grow HAV grades 36

38 Disciplined capital allocation focused on value driven strategic initiatives: Mexico HSM US$1.0 billion three-year investment commitment Construction of a new 2.5Mt hot strip mill initiated late 4Q 2017 Investments to sustain the competitiveness of mining operations Modernizing its existing asset base Estimated ~$350m capex in 2018 Enable full production capacity to be achieved and significantly enhance proportion of HAV mix Will benefit from Lázaro Cárdenas designation as one of 5 new Special Economic Zones in Mexico In-line with Action 2020 plan ArcelorMittal Mexico: Current production 4Mt increasing to ~5.3Mt (2.5Mt flat; 1.8Mt long and 1Mt semi-finished slabs) Vertically integrated with flat and long product capabilities ArcelorMittal Lazaro Cardenas s raw materials and slabs shipped through a dedicated port facility (Mexico s largest bulk handling port) Mexico currently heavily reliant on imports of value-added steel; high growth expected 37

39 Burns Harbor - New Walking Beam Furnaces Burns Harbor Hot Mill - New Walking Beam Furnaces: 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 2021 AM USA expands surface critical capability at Burns Harbor to provide a sustained automotive footprint 38

40 Section 5 MACRO HIGHLIGHTS

41 Demand in core markets is growing Steel shipment split by segment FY 17 End market growth prospects in US (2007=100) Brazil 12% 15% ACIS % NAFTA Construction* Machinery** Auto*** End market growth prospects in EU28 (2007=100) Europe 47% 75% of shipment to developed markets Demand recovery in core markets has been offset by high imports Source: * & ** Oxford Economics Global Industry Forecasts; *** Oxford Economics Global Industry Forecasts, and LMC Automotive Global Car and Truck Forecasts; (latest update: 2Q 2017) 40

42 Global steel demand for 2017 Global ASC 2017 v 2016* ArcelorMittal ASC demand estimates 2017 Global apparent steel consumption increased by +3.2% in 2017 US** 1.3% Healthy demand backdrop maintained in Europe and US EU28 1.5% China: Positive demand growth due to strength in automotive and machinery China 3.5% Brazil: Positive demand with growth in automotive offset by ongoing weakness in construction CIS: Reflecting stronger economic growth in Russia Brazil CIS Global 3.2% 4.6% 5.4% 2017 ASC growth of +3.2%; positive outlook for 2018 Source: *ArcelorMittal estimates ** Excludes tubular demand. ASC growth in 2017 in the US including pipes and tubes of +6.1% 41

43 Global ASC rates Global apparent steel consumption (ASC)* (million tonnes per month) US and European apparent steel consumption (ASC)* (million tonnes per month) China Developing ex-china Developed (latest data point: Dec-2017) 19 US EU (latest data point: Dec-2017) 3 Global ASC -3.9% in 4Q 17 vs. 3Q 17 Global ASC +2.6% in 4Q 17 vs. 4Q 16 Global ASC +3.2% in 12M 17 vs. 12M 16 China ASC -5.9% in 4Q 17 vs. 3Q 17 China ASC +1.7% in 4Q 17 vs. 4Q 16 China ASC +3.5% in 12M 17 vs. 12M 16 US** ASC -5.2% in 4Q 17 vs. 3Q 17 US** ASC +6.3% in 4Q 17 vs. 4Q 16 US** ASC +6.1% in 12M 17 vs. 12M 16 EU ASC +2.9% in 4Q 17 vs. 3Q 17 EU ASC +1.6% in 4Q 17 vs. 4Q 16 EU ASC +1.5% in 12M 17 vs. 12M 16 * Source: AISI, Eurofer and ArcelorMittal estimates; ** includes pipes and tubes Global ASC improvement of +3.2% 2017 vs

44 Construction markets in developed market United States 2017 housing permits increased to 3.9% from 2.0% in 2016, boding well for residential construction in Although non-residential construction spending slowed in 2Q 17-3Q 17, it showed signs of recovery in 4Q 17. Architecture Billings Index (ABI) for 2017 came in strong, with 10 out of 12 months reading >50 and 4Q 17 at Continued uncertainty over the ability of the new administration to pass an infrastructure bill means the pick-up in infrastructure spending delayed until 2019 Europe European construction accelerated to an estimated 3.5% in 2017 from 1.8% in Growth in construction was led by Eastern European countries, particularly Poland and Hungary, with both growing double digits. Overall, construction activity in 2017 was supported by the fastest GDP growth in a decade at 2.5% yoy. Eurozone construction PMI now >50 for 14 months US residential and non-residential construction indicators (SAAR) $bn* Residential Non residential (latest data point: Nov-2017) Eurozone and US construction indicators** 65 Architecture Billings Index (USA) Eurozone construction PMI (latest data point: Dec-2017) * Source: US Census Bureau; ** Source: Markit and The American Institute of Architects Construction growth accelerating in

45 Regional inventories German inventories (000 Mt)* Germany flat stocks Months Supply (RHS) (latest data point: Jun 2017) US service centre total steel inventories (000 Mt) (latest data point: Dec-2017) 13, ,200 2,000 1, ,000 11,000 10,000 9,000 USA (MSCI) Months Supply (RHS) , , ,400 1, ,000 6,000 5, Brazil service centre inventories (000 Mt) Flat stocks at service centres 1,400 Months Supply (RHS) 1,200 1, (latest data point: Dec 2017) China service centre inventories** (Mt/mth) with ASC% Flat and long % of ASC (RHS) (latest data point: Dec-2017) 50% 40% 30% 20% % % * Last source updated Jun 2017 ** Source: WSA, Mysteel, ArcelorMittal Strategy estimates Inventory trends 44

46 China overview China GDP growth slowing gradually after a modest tightening of monetary conditions, as the government seeks to control financial risks but valuing stability, no major policy change Non-financial corporate debt remains an issue (>150% of GDP), mainly SOE s therefore the government will continue to focus on capacity cuts of heavy industry to improve profitability and reduce environmental concerns Despite slowing as expected in 3Q 17, real estate sales and new starts growth rebounded in Nov/Dec, potentially leading to stronger real estate demand in ASC to be broadly stable with machinery helped by rising exports due to strong global demand and without a drag from declining construction Chinese exports down over 30% in 2017; we expect production cuts to constrain exports in the short term Inventories lower than usual due to policy restricted output China construction % change YoY, (3mth moving av.)* 100% Residential floor space sold (6 month lag) Residential floor space started 80% 60% 40% 20% 0% -20% (latest data point: Nov-2017) -40% Crude steel finished production and inventory (mmt) Steel inventory at warehouses (RHS) Steel inventory at mills (RHS) Finished steel production (LHS) (Latest data point: Dec-2017) China ASC demand grow 3.5% in 2017; more stable in 2018 with growth of -0.5% to +0.5% * Source: China National Bureau of Statistics, China Real Estate Index System (via Haver) and ArcelorMittal estimates; Source: NBS, CISA, WSA, Mysteel, ArcelorMittal Strategy estimates 45

47 China supply reform ahead of schedule Chinese government committed to tackle overcapacity and environmental issues Capacity reduction ahead of expectations: net capacity reduction achieved vs. 140Mt target 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 Winter shutdowns supporting fundamentals through seasonally weaker demand period 115Mt permanent capacity closed further 25Mt targeted in 2018 Additional ~120Mt illegal induction furnace capacity closed Industry capacity utilization ~85-90% today Steel exports reduced Domestic capacity must reflect demand outlook Supply side reform progressing well; China ahead of initial plans to close steel capacity 46

48 China addressing its excess capacity 11 th 5-year plan th 5-year plan 2013 September 2016 February 2018 January 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 115Mt net capacity reduction of the 140Mt target (65Mt in 2016 and 50Mt in 2017) In 2018, ~25Mt left to be cut Elimination of ~120Mt induction furnaces (IF) in June 2017 Winter shut downs from Nov 17 to Mar 18; utilization rates cut to 50% in cities 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 for key areas* Previous capacity closures more than offset by rapid capacity additions China steel capacity rationalisation will take time trade action to protect during this transition * *The ratio 1:1.25 BF-BOF is for so-called the environmentally-sensitive areas, which means population-intensive and pollution-intensive as well, including Beijing-Tianjin-Hebei area, Yangtze-River-Delta area (Shanghai, Jiangsu Province and Zhejiang Province) and Zhujiang-River-Delta area (9 key cities including Guangzhou in Guangdong province). 47

49 Lower Chinese exports Full year 2017 finished steel exports were ~76Mt, approx. 31% below 2016 levels (109Mt) and 33% below the 2015 peak (112Mt) January 2018 exports down 18% MoM and 37% YoY, lowest since February 2013 Production cuts should constrain exports in short term 2017 exports lower by ~31% YoY Source: ArcelorMittal Corporate Strategy team analysis 48 Highly Restricted 48

50 Section 6 AUTOMOTIVE

51 No1 in automotive steel: Maintaining leadership position ArcelorMittal is the global leader in steel for automotive 40% market share in our core markets Global R&D platform sustains a material competitive advantage Proven record of developing new products and affordable solutions to meet OEM targets S-In-Motion SUV/Mid-Size Sedans 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 Continue to invest and innovate to maintain competitiveness 50

52 Global presence and reach Automotive production facilities Alliances & JVs Commercial teams R&D centres Vehicle production 2017 > 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 51

53 Automotive growth in developed world USA / Canada and EU28 + Turkey vehicles production million units USA and Canadian automotive production stabilized Stability supported by replacement (average age of fleet 11.5 years), continued economic and population growth EU28 and Turkey production reached record highs in 2017 and further growth expected USA+CANADA (LMC) USA+CANADA (IHS) EU28+Turkey (LMC) USA/Canadian production stable, EU28 & Turkey continue to recover 52

54 Automotive emerging market growth China vehicle production ( 000s) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 China 27,636 33,506 China production to grow steadily by +6mvh in 2017 to ~33mvh by 2025 India production to increase ~80% by 2025 (from 4.5mvh in 2017 to 8mvh in 2025) Mexico production is expected to increase Brazil, India, Russia & Mexico vehicle production ( 000 s) by 6.3% (2017 vs 2025) 9,000 8,000 Russia India Brazil Mexico 8,027 Brazil production growth expected to 7,000 6,000 5,000 4,000 3,000 2,000 1, ,456 3,946 2,637 1,446 4,193 3,928 2,327 continue and reach 3.9mvh in 2025 Russia production is expected to recover and reach 2013 level in 2022 Source: IHS Strong growth expected in India, China and Brazi 53

55 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 54

56 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 undergoing customer qualifications 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 (ArcelorMittal s Electrosite family of martensitic steels) 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 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 55

57 Automotive Industry Leadership Audi coming back to steel Over 40% of the materials in the 2018 Audi A8 body structure will be steel, of which 17% will be press hardenable steel The head of Audi s Lightweight Construction Centre is quoted as saying that There will be no cars made of aluminium alone in the future. Press hardened steel will play a special role in this development. If you compare the stiffness to weight ratio, PHS is currently ahead of aluminium. Leveraging R&D for new products, solutions and processes 56

58 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 57

59 VAMA greenfield JV facility in China 1.5 MT state-of-the-art production facility Well-positioned to serve growing automotive market China 2017 output 27.6mvh (IHS) +3.2% YoY VAMA has successfully completed homologation on UHSS/AHSS with key tier 1 auto OEMs (~60% complete) Latest development: Strong sales & order book for licensed USIBOR 1500 VAMA started the first commercial supply of exposed products in 4Q 2017 Start of production ceremony for downstream ATSs project in 4Q 2017 VAMA: Valin ArcelorMittal Automotive target areas and markets BYD, Changan, Suzuki, CFMA & FAW-VW Daimler & Nissan Beijing FAW-VW & BMW Geely, VW, GM, KIA, SAIC & Chery Shanghai Loudi VAMA 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 VAMA well positioned to supply growing Chinese auto market BYD: Build Your Dreams; CFMA: Changan Ford Mazda Automobile; SAIC: Shanghai Automotive Industry Corporation; JMC: Jiangling Motors Corporation 58

60 INDIA auto JV with SAIL Passenger vehicles production Million % % % AHSS++ penetration (%) 28% PV exports PV domestic LCV INDIA AUTO OUTLOOK : India passenger vehicle segment is expected to grow at 8-8.5% CAGR New safety regulation would accelerate penetration of AHSS+ UHSS steel in passenger vehicles and LCV to meet safety norms* INDIA AUTO JV with SAIL ArcelorMittal & SAIL entered into a MoU on May 22, 2015 for setting up an automotive steel facility under a joint venture agreement. Venture to offer technologically advanced steel products to rapidly growing automotive industry in India. Feasibility study currently underway for 1.5Mtpa in phase 1 incl. PLTCM, CAL & CGL (Pickling Line & Tandem Cold Mill, Continuous Annealing Line, Continuous Galv. Line) Medium to high grade steel demand from auto sector, MT Robust automotive growth / new regulation will drive demand for high grade automotive steel *(BNVSAP) & emission standards (BS VI): Bharat New Vehicle Safety Assessment Program is a proposed new car assessment program for India; BS-VI is the last norm on emission standard (Bharat Stage Emission Standards BSES) 59

61 Section 7 GROUP HIGHLIGHTS

62 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 61

63 Global scale, regional leadership Key performance data 12M 2017 NAFTA Brazil* Europe Mining ACIS Revenues ($bn) % Group** 24% 11% 49% 6% 10% EBITDA ($bn) % Group** 20% 11% 41% 16% 12% Shipments (M mt) *** 13.1 % Group 25% 12% 48% 15% ~197,100 employees serving customers in over 160 countries Global scale delivering synergies * Brazil includes neighboring countries ** Percentage calculation for Revenue and EBITDA exclude others and eliminations; *** Iron ore shipments only (market price plus cost plus tonnage) 62

64 Group performance FY17 v FY16 FY17 v FY16 analysis: EBITDA ($ Millions) and EBITDA/t Crude steel production increased 2.6% to 93.1Mt with increases in NAFTA (+5.7%), BRAZIL (+0.7%) and Europe (+2.7%) offset in part by a decline in ACIS (-0.8%) Steel shipments increased 1.6% primarily due to increases in NAFTA (+2.6%), BRAZIL (+0.8%) and Europe (+1.7%) offset in part by a decline in ACIS (-1.3%) Sales increased 20.9% to $68.7bn vs. $56.8bn for FY 16, primarily due to higher average steel selling prices (ASP) (+20.4%), higher steel shipments (+1.6%), higher seaborne iron ore reference prices (+22.3%) and higher marketable iron ore shipments (+6.1%). EBITDA improved 34.4% primarily due higher volumes and ASP in the steel and mining businesses as well as the benefits of Action 2020 cost savings $83/t 1,661 1,924 2,141 4Q 16 Average steel selling price $/t +2.7% Q 16 3Q 17 3Q % Steel shipments (000 t) $89/t $102/t $75/t $99/t -3.3% 4Q 17 4Q 17 6,255 FY % +20.4% +1.6% 8,408 FY FY 16 FY 17 20,045 21,705 20,996 83,934 85,242 4Q 16 3Q 17 4Q 17 FY 16 FY 17 Group profitability increased YoY 63

65 Group performance 4Q 17 v 3Q 16 4Q 17 v 3Q 17 analysis: EBITDA ($ Millions) and EBITDA/t Crude steel production decreased 3.8% to 22.7Mt with decreases in NAFTA (-5.2%) and Europe (-8.3%) offset in part by improvements in BRAZIL (+6.9%) and ACIS (+4.5%) Steel shipments decreased 3.3% primarily due to declines in NAFTA (-8.9%) and ACIS (-3.2%) offset in part by increases at Brazil (+3.8%) and marginally in Europe (0.3%) Sales increased 0.4% to $17.7bn vs. $17.6bn for 3Q 17, primarily due to higher average steel selling prices (ASP) (+2.7%), offset in part by lower steel shipments (-3.3%), lower seaborne iron ore reference prices (-7.5%) and lower marketable iron ore shipments (-7.2%). EBITDA improved 11.2% primarily due to higher volumes offset in part by a negative price-cost effect $83/t 1,661 1,924 2,141 4Q 16 Average steel selling price $/t +2.7% Q 16 3Q 17 3Q % Steel shipments (000 t) $89/t $102/t $75/t $99/t -3.3% 4Q 17 4Q 17 6,255 FY % +20.4% +1.6% 8,408 FY FY 16 FY 17 20,045 21,705 20,996 83,934 85,242 4Q 16 3Q 17 4Q 17 FY 16 FY 17 Group profitability increased QoQ 64

66 NAFTA performance 4Q 17 v 3Q 17 4Q 17 v 3Q 17 analysis: NAFTA segment crude steel production decreased by 5.2% to 5.6Mt in 4Q 17 primarily due to an operational issue in Mexico, a planned maintenance in Dofasco and a market slowdown in the US. Steel shipments in 4Q 17 decreased by 8.9% to 5.2Mt, driven primarily by decrease in volumes in the flat and long products on account of weak market. Sales in 4Q 17 declined 7.3% to $4.3bn, primarily due to lower steel shipment volumes, offset in part by higher ASP (+0.8%) (primarily in long products (+1.5%)). EBITDA in 4Q 17 decreased by 23.3% to $292m primarily due to lower steel shipment volumes (-8.9%) offset in part by positive price-cost effect. EBITDA ($ Millions) and EBITDA/t $60/t 301 4Q 16 Average steel selling price $/t +0.8% Q Q 17 Steel shipments (000 t) $67/t $57/t $81/t $78/t -23.3% 3Q % 292 4Q 17 4Q 17 1,719 FY % +10.3% +2.6% 1,703 FY FY 16 FY 17 5,011 5,655 5,150 21,281 21,834 4Q 16 3Q 17 4Q 17 FY 16 FY 17 Performance declined due to lower volumes offset in part by positive price-cost effect 65

67 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 Note: IH Bar facility closed in June 2015; Georgetown wire rod facility closed in August 2015, Vinton and LaPlace sold in 2Q

68 BRAZIL performance 4Q 17 v 3Q 17 4Q 17 v 3Q 17 analysis: EBITDA ($ Millions) and EBITDA/t Brazil segment crude steel production increased by 6.9% to 3.0Mt following planned maintenance at Monlevade, Brazil, during 3Q 17. Steel shipments in 4Q 17 increased by 3.8% to 3.1Mt due to a 10.4% increase in flat product steel shipments (primarily export) offset in part by 6.1% seasonal decrease in long product steel shipments. Sales in 4Q 17 increased by 9.4% to $2.3bn, due to higher ASP (5.3%) (with both domestic and export prices increasing) and higher steel shipments). EBITDA in 4Q 17 increased to $341m due to higher steel shipment volumes and positive price-cost effect. $75/t Q 16 Average steel selling price $/t +5.3% Q 16 $69/t $112/t $81/t $91/t 3Q 17 3Q % 341 4Q 17 4Q % FY % FY FY 16 FY 17 Steel shipments (000 t) +3.8% +0.8% 2,841 2,940 3,052 10,753 10,840 4Q 16 3Q 17 4Q 17 FY 16 FY 17 Performance improved significantly primarily due to positive price-cost effect and higher volumes 67

69 Improvement Brazil Crude steel achievable capacity (million Mt) Geographical footprint and logistics % Flat Flat 59.0% Long 1.4 Long 41.0% Piracicaba Monlevade Cariacica Tubarao 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. Brazil leading producer with 11.9t /pa installed capacity 68

70 EUROPE performance 4Q 17 v 3Q 17 4Q 17 v 3Q 17 analysis: Europe segment crude steel production decreased by 8.3% to 10.3Mt in 4Q 17, primarily due to a reline in ArcelorMittal Bremen and blast furnace maintenance in ArcelorMittal Galati. Steel shipments in 4Q 17 increased marginally to 10.2Mt, primarily due to a 2.8% increase in flat product shipments offset in part by a 4.5% decline in long product shipments. Sales in 4Q 17 were $9.6bn, higher vs. 3Q 17, with higher ASP (+1.8%) predominantly in the long product business and higher steel shipments. EBITDA in 4Q 17 increased by 1.6% to $861m primarily due to higher volumes. EBITDA ($ Millions) and EBITDA/t $73/t Q 16 Average steel selling price $/t +1.8% Q 16 $84/t $85/t $62/t $87/t 3Q 17 3Q % 4Q 17 4Q 17 2,503 FY % 3,560 FY FY % FY 17 Steel shipments (000 t) +0.3% +1.7% 9,535 10,116 10,151 40,247 40,941 4Q 16 3Q 17 4Q 17 FY 16 FY 17 Performance improved due to marginally higher volumes 69

71 Improvement Europe Crude steel achievable capacity (million Mt) Geographical footprint and logistics 53.0 Flat Flat 100.0% 71.0% Bremen Duisburg Ghent Dunkirk 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 5 9 Total (*) EUROPE facilities Flat Long Flat and Long The map is showing primary facilities excl. Pipes and Tubes. Europe leading producer with 53.0Mt /pa installed capacity (*) Excludes 2BF s in Florange 70

72 ACIS performance 4Q 17 v 3Q 17 4Q 17 v 3Q 17 analysis: ACIS segment crude steel production in 4Q 17 increased 4.5% to 3.8Mt Steel shipments in 4Q 17 decreased by 3.2% to 3.3Mt primarily due to lower steel shipments in CIS. Sales in 4Q 17 increased by 5.1% to $2.0bn, primarily due to higher ASP (+6.0%) primarily in CIS, offset in part by lower steel shipments (-3.2%). Operating income in 4Q 17 was $182m and impacted by impairments of $160m related to a downward revision of cash flow projections across all steel facilities in ArcelorMittal South Africa. EBITDA in 4Q 17 increased 77% to $423mn, primarily due to improved performance in both CIS and South Africa (positive pricecost effect), partly offset by lower shipment volumes. EBITDA ($ Millions) and EBITDA/t $46/t 142 Average steel selling price $/t +6.0% Q Q % Steel shipments (000 t) $71/t $130/t $51t $78/t -3.2% 423 4Q 16 3Q 17 4Q 17 4Q FY FY % +30.5% -1.3% 1,027 FY FY 17 3,095 3,362 3,254 13,271 13,094 4Q 16 3Q 17 4Q 17 FY 16 FY 17 Significant improvement due to positive price-cost effect partly offset by lower shipments 71

73 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 Kazakhstan 3 - Ukraine 5 - South Africa 4 2 Total 12 2 Vanderbijlpark Saldanha Vereeniging Newcastle The map is showing primary facilities excl. Pipes and Tubes. ACIS facilities Flat Long Flat and Long ACIS leading producer with 19.7Mt /pa installed capacity 72

74 Mining: Profitability improved Performance: 2017 EBITDA increased +84.7% YoY due to higher market priced IO shipments (+6.1% YoY) and higher seaborne IO market prices (+22.3% YoY) Growth: 2018 Market priced iron ore shipments expected to grow ~10% YoY Liberia: Transition to new deposit progressing well; 5Mt run-rate achieved Dec 17. (expect 5Mtpa in 2018 increase of 3Mt) Focus on quality: ongoing commitment on quality, service and delivery Cost focus maintained: FCF breakeven remains $40/t* EBITDA $m +84.7% 1, Marketable iron ore shipments (Mt) +6.1% Mining profitability positively impacted by higher iron ore prices and shipment volumes * CFR China 62% Fe 73

75 Mining performance 4Q 17 v 3Q 17 4Q 17 v 3Q 17 analysis: EBITDA ($ Millions) and EBITDA/t Own iron ore production in 4Q 17 increased by 1.4% to 14.4Mt. Despite weather related delays at the start of the quarter, Liberia produced at 5Mt run-rate by Dec 17. Market-priced iron ore shipments in 4Q 17 decreased 7.2% to 8.4Mt, primarily driven by lower shipments in AMMC impacted by poor weather conditions. FY 2017 market-priced iron ore shipments grew 6.1% YoY. Iron ore shipments are expected to grow by approximately 10% in 2018 versus 2017 (primarily due to Liberia which is expected to grow by approximately 3Mt on a full year basis to 5Mt in 2018). Own coal production in 4Q 17 decreased by 1.4% to 1.5Mt due to lower production in Kazakhstan. EBITDA in 4Q 17 decreased by 21.8% to $267m, primarily due to decreased seaborne iron ore reference prices (-8.1%) and lower market-priced iron ore shipments (-7.2%) % +84.7% , Q 16 3Q 17 4Q 17 FY 16 FY 17 Iron ore (MT) Q 16 3Q 17 4Q 17 FY 16 FY 17 Coal (Mt) Q 16 3Q 17 4Q 17 FY 16 FY 17 Own production Shipped at market price Shipped at cost plus Mining performance declined QoQ primarily due to lower iron ore prices and volumes 74

76 A global mining portfolio addressing Group steel needs and external market Key assets and projects Canada Baffinland 31.07% 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% Geographically diversified mining assets * 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,

77 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