Strategic progress Focussed on value drivers

Transcription

1 Strategic progress Focussed on value drivers Daniel Fairclough, Head of Investor Relations Valérie Mella, IR Specialist 18 November 2014

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. Forwardlooking statements may be identified by the words believe, expect, anticipate, target or similar expressions. Although ArcelorMittal s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the SEC ) made or to be made by ArcelorMittal, including ArcelorMittal s Annual Report on Form 20-F for the year ended December 31, 2013 filed with the SEC and with respect to Items 3, 4, 5, 6 and 18 of such Annual Report on Form 20-F, such Items have been retrospectively adjusted to reflect the retrospective application of changes in its segment information, which can be found in the current report on Form 6-K filed with the SEC on August 5, ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise. 1

3 Safety focus Health & Safety Lost time injury frequency (LTIF) rate* Mining & steel, employees and contractors 3.1 Health and safety performance Safety improvement: LTIF rate of 0.78x in 3Q 14 vs 0.87x in 2Q 14 and 0.84x in 3Q The Company s effort to improve the Group s Health and Safety record will continue The Company is focused on further reducing the rate of severe injuries and fatality prevention Q 14 2Q 14 3Q 14 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 2

4 Focus on value drivers delivering results Capturing volume recovery in core steel markets Margin restoration through cost optimization and operational improvement Franchise development through R&D driven product innovation and targeted investment Lower mining costs through expanded volumes Reducing net debt remains a priority 3Q 14 progress vs 3Q 13: Steel shipments +3.9% EBITDA/t +$6 to $89/t Marketable IO shipments +6.3% Mining cash costs on track for 7% reduction FY14 v FY13 (USDm) unless otherwise shown 3Q'14 2Q'14* 3Q'13 9M'14* 9M'13** Iron ore shipments at market price (Mt) Steel Shipments (Mt) Sales 20,067 20,704 19,643 60,559 59,592 EBITDA 1,905 1,763 1,713 5,422 4,978 Net income / (loss) (193) (131) (1,318) Steel EBITDA margins up $19/t YoY * EBITDA in 2Q 14 was negatively impacted by $90m following the settlement of US antitrust litigation ** EBITDA in 9M 13 included the positive impact of a $47m fair valuation gain relating to the acquisition of an additional ownership interest in DJ Galvanizing in Canada and $92m of DDH income. 3

5 Core markets expanding in 2014 Steel shipment split by segment 9M 14 Brazil 12% ArcelorMittal weighted global manufacturing PMI* NAFTA 27% 47% Europe 15% ACIS ArcelorMittal steel shipments (Mt) % (latest data point: Oct 14: 52.7) Shipments growth of 3% expected in 2014 * ArcelorMittal estimates 4

6 Recap Steel margin expansion Steel only EBITDA/t increased $19/t vs. 3Q 13 NAFTA $1/t improvement YoY improved pricing and volume offset by higher costs Brazil segment lower weak domestic market offset in part by higher slab exports Europe $20/t improvement YoY benefiting from lower cost and higher volume ACIS $30/t improvement driven by Kazakhstan and Ukraine turnaround Steel segment EBITDA per tonne (US$) on underlying basis Group: steel only +33% Europe segment +61% ACIS segment +88% Q 12* 3Q 13 3Q 14 3Q 12* 3Q 13 3Q 14 3Q 12 3Q 13 3Q 14 Improvement driven by Europe and ACIS 5 * 3Q 12 EBITDA on underlying basis excludes $72 million related to a one-time signing bonus and post retirement benefit costs following the new US labor contract (NAFTA) and $131m DDH income (Europe) 5

7 Mining volumes driving lower costs Growth: market priced iron ore shipments +6.3% YoY in Q3; +20.1% YoY for 9M 14 AMMC: Benefitting from expanded capacity; Shipping at near full capacity in 3Q 14 after minor operational issues; 23.5Mt expected in 2014 Liberia: production and shipments on target for 5Mt in 2014; Phase 2 expansion currently progressing at a slower pace due to contractors declaring force majeure Costs: overall mining costs reduction of 7% in 2014 vs IO marketable shipments (Mt) IO marketable shipments (Mt) Mining cash cost index % % % F 3Q 13 4Q 13 1Q 14 2Q 14 3Q F Continued mining volume growth and cost progress 6

8 ACIS turnaround underway Volume improvement: 2mt through operational reliability (investing in our assets) Shipments split by geographical location Domestic Maintenance practices: Maintenance Transformation program and WCM) and regaining customer confidence in domestic and core markets Long term agreements: Our long term supply agreement with Kumba expected to improve profitability Kryviy Rih Temirtau Exports Exports CIS CIS Domestic Renewed access to Middle-East market to improve overall shipments South Africa Exports Currency devaluation improves competitiveness: long due currency adjustment to offset the last couple of years inflation Domestic ACIS recovery underway 7

9 Global automotive a franchise business Steel set to remain material of choice for automotive producers ArcelorMittal is the leading supplier with a global footprint Unrivalled reputation for quality and innovation R&D efforts producing award winning Automotive solutions Focused investment to capture growth opportunities Calvert acquisition a break-through for NAFTA automotive franchise Award winning solutions Volkswagen is using high strength steels in increasing amounts. It is a very cost effective way of reducing weight. Using new innovations in steel engineering it is possible to reduce weight without the use for more costly materials such as aluminium and carbon fibre. Armin Plath, VW s Head of Materials Research and Manufacturing The door ring enhances the safety performance of the MDX to meet today s stringent roof crush and side impact standards, as well as the rigorous new IIHS small overlap front crash test. Ultimately, the cost effective, strong yet lightweight door ring helps deliver better fuel economy and improved overall performance to our customers. James A. Keller, vice president, auto development strategy, Honda R&D Americas, Inc Committed to producing innovative steel solutions for our automotive customers 8

10 Auto franchise developments Fortiform launched New range of cold-formable high strength steels Complements our existing Advanced High Strength Steels (AHSS) offering which includes Usibor and Ductibor Steel to remain the material of choice for auto ArcelorMittal s AHSS offering allows for significant weight savings while improving safety Helps customers meet their sustainability requirements in order to meet future regulations on tailpipe emissions Recent information released by major OEMs supports the case for steel remaining the material of choice Chevrolet recently launched AHSS-intensive toughnology concept for the 2015 Silverado New Volvo XC-90 Committed to producing innovative steel solutions for our automotive customers 9

11 Cost savings on schedule Run-rate of Asset Optimization savings at year end ($ million) $3bn management gains program ($ billion) Annualized savings Residual Costs Realised Savings Savings targets FY13 annualized savings achieved F 2015F Asset optimization program essentially complete Including residual costs, the targeted run-rate savings of $1bn has been clearly exceeded Further incremental EBITDA impact in 2014 as residual costs disappear from the system Bottom up plan across the group 2/3 variable cost and 1/3 fixed cost focussed Improvements in reliability, fuel rate, yield, productivity etc Business units plans rolled out and key personnel accountable for delivery. Leveraging extensive benchmarking opportunities within the group Asset optimization complete and management gains saving plan on track 10

12 Focussed M&A: creating value Gallatin JV sale Sale of 50% interest in Gallatin JV to Nucor Generating $385m cash in 4Q 14 Exit of a non-consolidated, non-core business Non franchise business Premium exit valuation $4.3 billion cash proceeds since Sept 2011* MacArthur Coal stake BNA stake Erdemir (½ of interest sold) Skyline Enovos Paul Wurth AMMC stake CLN Kiswire ATIC Circuit Foil Valin Gallatin NAFTA portfolio upgrade Gallatin stake sale accommodated investment in Calvert Calvert is a state-of-the-art facility orientated towards high-margin end markets Maintained group financial discipline and deleveraging objectives AM/NS Calvert: Pickling line Disciplined M&A capturing value creating opportunities * Gallatin JV sale completed in 3Q 14. Cash proceeds from sale received in 4Q 14 ** ArcelorMittal acquired Calvert through a 50:50 JV with Nippon Steel for total consideration of $1.55bn. Transaction was largely financed through debt at the JV level, while ArcelorMittal and Nippon Steel each only contributed ~$258m of equity to the JV. 11

13 Recap Progress towards medium-term target EBITDA per tonne (US$/t) on underlying basis* 82 9M 12* 78 9M 13** +18% 92 9M 14*** Iron ore price 62% China CFR (US$/t) % M 12 9M 13 9M 14 Iron ore price 62% China CFR (US$/t) 150 Medium term target Despite $32/t drop in iron ore 9M 13 v 9M 14 group margins have improved 9M 14 EBITDA/t increased $18% vs. 9M 13 on underlying basis Further progress will come from: Asset optimisation and Management gains Steel investments (including Calvert) Mining volume growth ACIS segment turnaround Solid progress towards $150/t medium term target Operational leverage to the expected steel volume recovery Industry profitability improvement *Underlying EBITDA in 9M 12 excludes $0.1bn DDH income offset by a $0.1bn charge related to a one-time signing bonus and post retirement benefit costs following entry into a new labor contract in the U.S; ** Underlying EBITDA in 9M 13 excludes 0.1bn DDH income *** Underlying 9M 14 EBITDA excludes $0.4bn adverse weather related costs, $0.1bn relating to settlement of US antitrust litigation and $0.1bn costs from unplanned maintenance 12

14 Lower net debt remains a priority Net debt* ( NFD ) progression ($bn) -7.1 Current commitments until $15bn NFD achieved: - No increase in growth capex - No net outflow M&A Once $15bn NFD reached, board will determine best use of surplus FCF: - Increase dividends? 3Q 11 3Q 14 Medium term target - Invest for growth? - Reduce NFD further? Recovering the investment grade credit rating remains a strategic priority * 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) 13

15 Recap Consistent improvement in health and safety Strong focus on mining growth plan, automotive franchise and advanced high strength steel solutions Significant progress in cost optimization and balance sheet strength Steel and mining volume improvement, steel margin expansion Positive outlook for ArcelorMittal core markets Roadmap to normalized profitability $150/t EBITDA Improvement, focus and growth in core markets to drive profitability 14

16 Appendix 15

17 Strategy 16 16

18 Continued focus on value drivers $3bn management gains plan Cost Leadership Product Leadership Best-in-class service Portfolio Optimization Focussed investment Improved EBITDA/tonne ($150/t normalized target) Capital Efficiency Returns > WACC Focussing on Franchise businesses All levels of ArcelorMittal aligned with one goal improved returns on capital 17

19 Non-Franchise Franchise Focussed capital allocation We are backing our franchise businesses with capital Steel shipment split: Other steel Franchise steel 55% of steel shipments from businesses identified as Franchise e.g. Global Autos, Capital priority Invest to protect and expand Approximate EBITDA split: Brazil long, Sheet Piles Other steel Mining Franchise businesses contribute 80% of steel EBITDA Focus on cost cutting and optimization Franchise steel Franchise businesses are receiving the required capital to protect and expand 18

20 Cost: Asset Optimization a success Including residual costs, the targeted run-rate savings of $1bn has been exceeded Residual costs should disappear from the system as we move through 2014 Savings are tangible and apparent in improved reported results Asset Optimization savings achieved ($ million) Residual Costs Run Rate-Savings Further EBITDA benefit to come in 2014 Costs of Asset Optimization (restructuring & impairments) totalled $2.1bn ($0.8bn non-cash) No further significant charges are anticipated related to the plan as announced Asset Optimization cash cost breakdown 2% 2% 14% 10% 72% FCE LCE AACIS AMDS Other Asset Optimization benefits are accruing to the business 19

21 Cost: Management Gains: $1.1bn savings delivered in FY13 $3bn management gains program ($ billion) Annualized savings Variable / fixed cost split of $3bn management gains program Savings targets 12M 13 achieved 25% Variable costs Fixed costs % F Savings on track to be delivered by F Majority off savings to be retained within the group 75% variable cost focused improve efficiency, effectiveness and operational performance Strong benchmark opportunities due to size and scale with breadth of products, processes and operations Cost management embedded in culture of the organization Management gains program built up from numerous projects Specific individuals accountable to deliver cost savings Productivity Others 6.2% Energy 32.4% 24.0% 37.4% Yield and Quality $1.1bn Mgt gains achieved in FY13 on track to deliver $3bn savings by

22 Q4 13 Asset Optimization Steel investments Impact of incremental volumes (assuming 95Mt steel shipments) Impact from normalization of iron ore prices Impact of management gains program Impact of ACIS turnaround Impact of Industry profitability at higher utilization rates TARGET Roadmap to normalized profitability If our markets expand by ~15% (i.e. global shipments back to >95mt) then we believe $150/t EBITDA is achievable 15 $138/t $150/t 22 Stretch 9 6 $91/t 3 4 Plan 13 Significant portion of EBITDA recovery plan is controllable 21

23 Market outlook 22

24 Gradual acceleration in the global economy expected Real GDP, compound annual growth rate (CAGR) World NAFTA EU Eurozone Brazil Russia India China Source: IHS Global Insight, September forecast 23

25 Leading indicators remain positive ArcelorMittal weighted global manufacturing PMI* Global apparent steel consumption (ASC) growth forecast in 2014** (v 2013) US % EU % China % Brazil -4.5 to -5% CIS -3.0 to -3.5% (latest data point: Oct 14: 52.7) Global % PMI above 50 continues to point to further improved demand Source: * Markit. Purchasing managers indices for over 40 countries weighted by share of ArcelorMittal finished steel deliveries. ** ArcelorMittal estimates 24

26 Positive fundamentals in developed markets End market growth prospects in US and EU28 (2007=100) USA EU28 Construction* Machinery** Auto*** Improving market fundamentals in core markets * Weighted by steel demand, i.e. larger weight given to non-residential; ** Industrial output of machinery and equipment (Source:: IHS Global Insight forecasts at Jan 2014); *** Light vehicle assembly (Source: LMC Auto Feb 14) 25

27 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Contraction Expansion Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 US construction growth continues; Europe easing back US residential and non-residential construction indicators (SAAR) $bn* Residential Non-residential (latest data point: Aug 14) US growth continues in 3Q 14 Total construction spending fell slightly in August, bringing the y-o-y growth rate down to 5%. Non-residential is growing more strongly than residential, up 6.4% ytd Strength is likely to persist as the Architecture Billings Index picked up to 55.2 in September. Eurozone and US construction indicators** 65 Eurozone construction PMI USA Architectural Billings Index (latest data point: Aug 14) 30 European construction easing back Eurozone construction PMI remains below 50, rising only slightly to 43.1 in September. In contrast, EU28 construction growth actually picked up in August to 2.2% y-o-y. Output in 2014 expected to be higher than 2013, led by growth in Germany, Poland and the UK. Construction in Southern Europe remains weak despite a pick up from low levels in Spain. Construction gradually improving * Source: US Census Bureau; ** Source: Markit and The American Institute of Architects 26

28 Improving labour market and credit conditions are driving growth in the US Unemployment rate, percent Bank credit to the private sector, percent change yearon-year 11 20% 10 15% Eurozone United States 9 10% European Union United States 5% 0% -5% 4-10% Sources: Haver Analytics, US Bureau of Labor Statistics, Eurostat Source: Haver Analytics, Federal Reserve Board, European Central Bank 27

29 Driving a return to pre-crisis auto sales and retail sales above pre-crisis levels Automotive sales, seasonally adjusted annual rate (SAAR) millions Retail sales, index 2007 = European Union United States Eurozone United States Sources: Haver Analytics, US Bureau of Economic Analysis, European Central Bank Sources: Haver Analytics, US Bureau of the Census, Eurostat 28

30 Global apparent steel consumption China +70% % % 2014F EU % % % 2014F NAFTA % -2% % F Rest of World* % % +2% F Estimated 2014 ASC growth of % ArcelorMittal estimates; * World ex. China, NAFTA and EU

31 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Growth in developed market inventory slows German inventories (000 MT) US service centre total steel Inventories (000 MT) 2,500 (latest data point: Aug 14) 2,000 1,500 1, Germany Flat Stocks Months Supply (RHS) ,000 12,000 10,000 8,000 6,000 4,000 2,000 (latest data point: Sep 14) USA (MSCI) Months Supply ,400 1,300 1,200 1,100 1, Brazil service centre inventories (000 MT) (latest data point: Sept 14) Flat stocks at service centres Months of supply (RHS) China service centre inventories* (Mt/mth) with ASC% Flat and Long % of ASC (RHS) (latest data point: Sept 14) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Slow rebound in inventory is supporting demand growth in developed market Source: WSA, Mysteel, ArcelorMittal Strategy estimates 30

32 Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Raw material prices stabilizing Spot iron ore, coking coal and scrap price (index IH 2008=100)* Regional steel price HRC ($/t) (latest data point: Oct 14) (latest data point: Oct 14) Spot Iron Ore Coking Coal Scrap China domestic Shanghai (Inc 17% VAT) N.America FOB Midwest N.Europe domestic ex-works Coking coal stable during the quarter; iron ore and scrap declined * Source data: ArcelorMittal estimates; Platts 31

33 China 32

34 Steel demand growth rates in China have trended down China annual growth rates of GDP and ASC (apparent crude steel consumption), (%) Ratio ASC/GDP Growth (LHS) ASC growth (RHS) Real GDP growth (RHS) The announced slowing of China s GDP growth rate is consistent with 12th 5-Year Plan 14.2% % % 9.6% 9.2% 10.5% 9.3% % 7.0% 7.8% 7.7% 7.4% '08/ F 0 11th plan th plan F China s steel demand growth have trended down Source: GDP: IHS Global Insight, ASC: ArcelorMittal Corporate Strategy estimates (Q1 2014) 33

35 Driving continuously strong growth in infrastructure with further potential beyond 2020 comparing China with the US USA, 2008 Key development parameters China vs USA Absolute levels Per capita/per land area China, 2013 China, 2015 China, 2020 Urban residential floor space (billion m2) Urban residential floor space (m2 per capita) Equal to 33, 34, 36 m 2 per urban residential Railway (thousand km) Railway (km per 1000 sq km) Subway (thousand km) Subway per 1000 capita (m) Total road (thousand km) Total road (km per 1000 sq km) Airport* (units) Airport transport passenger carried (bln) * Airport of USA is for paved runways > 1524 to 2437 m Sources: China National Bureau of Statistics; Macquarie Research, ArcelorMittal Corporate Strategy Highly Restricted 34

36 Despite declining real estate, other sectors support steel demand growth Chinese apparent crude steel consumption, million tonnes (base case) 2% CAGR 7.5% CAGR Other Ship Building Auto Light industry Machinery Infrastructure Real estate Sources: ArcelorMittal Corporate Strategy team analysis 35

37 China net export data China trade data, NSA, mt Exports Imports Net-trade 8.0 (latest data point: Sept 14) China exports increased 73% y-o-y to 8.5mmt in Sep exports of 63MT and Jan-Sept 14 exports up 39% yoy Exports are expected to remain strong in 2H14, and exceed 85MT in 2014 Chinese exports increased 73% yoy in Sept 14 36

38 Selective steel projects

39 Selective steel projects: AM/NS Calvert JV AM/NS Calvert announced two important investment projects that will further enhance the capabilities of the world s most advanced steel finishing facility in Calvert, Alabama Slab yard expansion to increase Calvert s slab staging capacity and efficiency ($40m): Investment in the existing No.4 continuous coating line: The current HSM consists of 3 bays with 335kt capacity for incoming slabs (less than the staging capacity required to achieve the 5.3Mt target) Includes additional overhead cranes, foundation work and structural steel erection, to increase the staging and storage capacity in support of achieving full capacity Project completion expected in 2Q 2016 Increases ArcelorMittal s North American capacity to produce press hardenable steels, one of the strongest steels used in automotive applications, Usibor, a type one aluminum-silicon coated (Al Si) high strength steel AM/NS Calvert will also be capable of producing Ductibor, an energy-absorbing high strength steel grade designed specifically to complement Usibor and offer ductility benefits to customers The modifications are expected to be complete by the end of 2014 and the first coil is targeted for production in early 2015 Investment in Calvert to further enhance automotive capabilities 38 38

40 Selective steel projects: Monlevade (Brazil segment) Billet charging table Monlevade expansion project in Brazil restarted: Phase 1 (approved) focuses on downstream facilities and consists of: a new wire rod mill in Monlevade with additional capacity of 1,050ktpy of coils with capital expenditure of $280m; Juiz de Fora rebar capacity increase from 50 to 400ktpy (replacing some wire rod production capacity) and meltshop capacity increase by 200ktpy Expected completion in 2015 A decision whether to invest in Phase 2 of the project, focusing on the upstream facilities in Monlevade (sinter plant, blast furnace and meltshop), will be taken at a later date Intermediate mill Hangar of the rolling mill # 3 Vertical stands Wire rod mill Expansion supported by improved market for long products in Brazil 39 39

41 Selective steel projects: Acindar (Brazil segment) New rolling mill at Acindar (Argentina): New rolling mill (Huatian) in Santa Fe province to increase rebar capacity by 0.4mt/year for civil construction market: New rolling mill will also enable Acindar to optimize production at its special bar quality (SBQ) rolling mill in Villa Constitución, which in future will only manufacture products for the automotive and mining industries Estimated capital expenditure of ~$100m and completion in 2016 Progress update Equipment import: Rolling mill Huatian received at Acindar Disassembly of the existing rolling mill (from March to July): electrical disassembly at 65%, mechanical disassembly at 35% Expansion supported by improved construction market in Argentina 40 40

42 Selective steel projects: Dofasco (NAFTA) Cost optimization, mix improvement and increase of shipments of galvanized products: Phase 1: New heavy gauge galvanize line (#6 Galvanize Line): Restart construction of heavy gauge galvanizing line #6 (cap. 660ktpy) and closure of line #2 (cap. 400ktpy) increased shipments of galvanized sheet by 260ktpy, along with improved mix and optimized cost Line #6 will incorporate AHSS capability part of program to improve Dofasco s ability to serve customers in the automotive, construction, and industrial markets Expected completion in 2015 Phase 2: Approved Galvanized line conversion: Restart conversion of #4 galvanize line to dual pot line (capacity 160ktpy of galvalume and 128ktpy of galvanize products) and closure of line #1 galvanize line (cap.170ktpy of galvalume) increased shipments of galvanized sheet by 128ktpy, along with improved mix and optimized cost. Expected completion in 2016 Expansion supported by strong market for galvanized products 41 41

43 Selective steel projects: VAMA-JV with Hunan Valin VAMA: JV between ArcelorMittal and Hunan Valin which will produce steel for high-end applications in the automobile industry, supplying international automakers and first-tier Chinese car manufacturers as well as their supplier networks for rapidly growing Chinese market Construction of automotive facility, the main components are: State of the art pickling tandem CRM (1.5mt) Continuous annealing line (0.9mt), and Hot dip galvanizing line (0.5mt) Capital expenditure of ~$832 million (100% basis) First automotive coils targeted for 1Q 2015 Robust Chinese automotive market: > 50% growth to 25 million vehicles by

44 Mining Mont Wright, Canada 43

45 Iron ore capacity development Marketable iron ore shipments growth (Mt) +22% ~ +15% Reinforced Management New CEO Bill Scotting In place since mid Delivering on Volumes 10Mt capacity added in 2013 Marketable shipments +22% F Delivering on Cost Average iron ore concentrate cash costs maintained in 2013 But projected to decline 7% in 2014 Iron ore production capacity (Mt) Identifying Growth Stretch production beyond 84Mt at minimal additional capex Opportunities identified at Liberia and AMMC F Stretch Leveraging infrastructure to bring resources to market and reduce costs 44

46 Improvement Iron ore volumes on track Market priced iron ore shipment growth (million Mt) % YoY improvement in market priced iron ore shipments; seasonally lower shipments in 3Q 14 vs. 2Q 14 AMMC: Shipping at full capacity 24Mt production rate achieved in Dec 2013 Unit costs benefiting from higher volumes 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 Market priced iron ore shipment growth F (million Mt) % 6.1Mt shipped in 3Q 14 vs. 5.1Mt in 3Q 13 Liberia: Phase 1 progressing unaffected by Ebola epidemic; Phase 2 delayed production and shipments on target for 5Mt in 2014; Phase 2 expansion currently progressing at a slower pace due to contractors declaring force majeure 1.0Mt shipped in 3Q 14 vs. 1.2Mt in 3Q F On track to achieve 15% market priced iron ore shipment growth in

47 Liberia growing to 15Mt with further stretch potential Liberia iron ore capacity forecast (MMt) 2014 DSO 20 5 Phase 2 Sinter feed DSO (Stretch) DSO Phase 2 - Stretch Revised phase 2 project: Sinter feed Product analysis and additional mine planning have identified potential to supply 15Mtpa high quality sinter feed at significantly lower cost than concentrate for first 8-10yrs Investment capex estimate of circa $1.7 billion Stretch opportunity: Better definition of ore body and mine plan confirmed potential to continue DSO phase for additional 6 years Expansion to 20Mtpa capacity* Incremental investments enable benefits of scale on rail, port and SGA Ebola: Preventive measures in place (temperature checks, hygiene, awareness) Supporting the Government and engagement with the Community Since outbreak 5000 people and families are working in our concessions without any case Number of cases declining in the counties that we operate * subject to final approvals Stretching existing assets with limited capex to maximize potential value 46

48 AMMC expanded to 24Mt with potential to stretch to 30Mt AM Mines Canada Iron ore production/ capacity (MMt) Production Incremental debottlenecking Potential further debottleneck Concentrator and spirals expansion complete Potential 6MT expansion - low capex intensity F Daily records show potential in system Stretch potential Incremental investments for debottlenecking as required: Mt Wright mine optimization, Fire Lake expansion (richer ore) and crusher debottlenecking Rail winter reclaim capability, long train capability, additional sidings Additional conveyor capacity at port Significant cost benefits from scale Potential to expand beyond 30Mt at low capital intensity Incremental steps to maximize the demonstrated potential of the system * subject to final approvals 47

49 Baffinland Early Revenue Phase Targeting 3.5Mt production rate by 2H 2015 Proposed Early Revenue Phase rationale - ERP commenced in 1Q 13 (budget ~$730m) - Enables an early mining phase that requires less capital investment than full project, creating training, employment, business opportunities for local region - ERP to demonstrate product quality/ ability to operate - High grade: 66%+ Fe iron direct shipping pellet and fine ore (no processing or pelletization required); products expected to achieve full premium value ERP components - Trucking of ore to Milne Inlet, loading of ore in Milne Inlet, and shipping of ore from Milne Inlet to markets - Upgrades of road connecting Milne Inlet and mine site - Mining and trucking of 3.5Mtpa from Deposit 1 to Milne Inlet throughout the year - Open water season shipping of ore from Milne Inlet - First ore to be shipped in 2H 15 product tonnage targeted for Europe * Financing at JV level ERP on track for first shipments in 2H 15 during open water season 48

50 Mining business portfolio Key assets and projects Canada Baffinland 50% (1) Bosnia Iron Ore 51% Ukraine Iron Ore 95.13% Russian Coal 98.64% USA Iron Ore Minorca 100% Hibbing 62.31%* USA Coal 100% Canada AMMC 85% (2) Algeria Iron Ore 70% Kazakhstan Coal 8 mines 100% Kazakhstan Iron Ore 4 mines 100% Non ferrous mine Iron ore mine Mexico Iron Ore Las Truchas & Volcan 100%; Pena 50%* Liberia Iron Ore 85% Indian Iron Ore & Coal exploration license Coal mine Existing mines New projects / exploration Brazil Iron Ore 100% South Africa Manganese 50% (3) South Africa Iron Ore** Coal of Africa 15.98% Geographically diversified mining assets * Includes share of production ** Includes purchases made under July 2010 interim agreement with Kumba (South Africa) (1) Following an agreement signed off in December 2012, on February 20th, 2013, Nunavut Iron Ore subscribed for new shares in Baffinland Iron Mines Corporation which diluted AM s stake to 50% (2) January 2nd, 2013 AM entered into an agreement to sell 15% of its stake in AM Mines Canada to a consortium lead POSCO and China Steel Corporation (CSC). (3) In November 2012, ArcelorMittal signed a share purchase agreement with Mrs. Mashile-Nkosi providing, subject to various conditions, for the acquisition by her or her nominee of ArcelorMittal s 50% interest in Kalagadi Manganese. 49

51 Iron ore reserve and resource estimates Strong reserve basis to support sustainable growth 2013 vs 2012 Iron ore reserves (million metric tonnes) Region As of December 31, 2013 As of December 31, 2012 Proven Ore Reserves Probable Ore Reserves Total Ore Reserves Total Ore Reserves Millions of Tonnes % Fe Millions of Tonnes % Fe Millions of Tonnes Highlights of 2013: Reserves additions exceeded mining depletion to provide a net increase of ~278Mt in iron ore reserves The average Fe grade increased by 0.8% due to the addition of higher grade iron ore reserves from the Fire Lake deposit in Canada. Reserve estimates are supported by internal technical reports Updated life of mine plans with discounted cash flows to support demonstration of economic viability for all ore reserve estimates In addition, a large resource base with potential for economic extraction supports reserves additions and replacement and future potential growth. % Fe 2013 Iron ore reserves of 4.6 bn metric tonnes Millions of Tonnes Canada (AMMC) 2, , , Canada (Baffinland) USA Central America South America West Africa Eastern Europe Central Asia Total % Fe 50

52 Coal business Key assets and projects for coal business Coal mine Existing mines USA Coal 100% Russian Coal 98.64% New projects Kazakhstan Coal 8 mines 100% 2012 vs 2013 Coal reserves (Million metric tonnes) As of December 31, 2013 As of December 31, 2012 Region Proven Ore Probable Ore Total Ore Reserves Reserves Reserves Total Ore Reserves Millions of Millions of Millions of Tonnes Tonnes Tonnes Millions of Tonnes Princeton - USA Kuzbass - Russia Kazakhstan Total Highlights of 2013: Reserves additions have entirely offset mining depletion Large resource base with potential for economic extraction supports reserves additions and replacement Indian Iron Ore & Steam Coal Coal of Africa 15.75% interest Coal asset geographically diversified 318 million tonnes of reserves 51

53 Auto 52

54 Auto franchise developments AM/NS Calvert progress update Integration of ArcelorMittal Tubarao and ArcelorMittal Mexico as slab suppliers to JV is progressing and continued into 3Q 14. Trials in process to qualify these slab sources with our customers Approved on 144 of 164 identified automotive qualification packages with 30 or more new qualifications targeted in 2015 Calvert: Continuous hot-dip galvanising line VAMA China automotive steel JV State-of-the art facility to serve the fast-growing China automotive industry Inauguration of the cold mill complex during 2Q 14; first automotive coils expected in 1Q 15 Initial capacity of 1.5 million tons expandable up to 2.3 million tons support ~10% share of the market Committed to producing innovative steel solutions for our automotive customers 53

55 Commitment to innovation Continuous investment in R&D drives innovation Usibor 1500P: first serial use of hot stamping of coated boron steels, patented by ArcelorMittal I II III Generation 1, phase 2 AHSS: Dual Phase, TRIP Steels, Martensitic etc. Generation 1, phase 1: HSLA, HSS Generation 2: TWIP, X-IP Generation 1, phase 3: Usibor for hot stamping Generation 3: 3rd Gen AHSS ArcelorMittal R&D program is global 1,300 full time researchers Broad, comprehensive portfolio and programmes addressing business needs Worldwide network of laboratories (11 labs in Europe and North America) Contribution to ULSAB/ULSAC industry-wide lightweight effort ArcelorMittal s ABC lightweight project S-in motion demonstrate s the potential of AHSS S-in motion electric vehicles Lightweight steel door Committed funding throughout the crisis R&D budget increase in 2014 S-in Motion: a catalogue of 60 steel solutions Savings of up to 73 kg or 19% of a typical C-segment vehicle s Body In White and chassis weight A 13.5% reduction in CO2 equivalent (eq) emissions during the vehicle s use-phase Increased collaboration with OEMs on co-engineering activities Contribution to significant growth of Advanced High Strength Steels and increase of our patented solutions (e.g. Usibor and Laser Welded Blanks) Through constant innovation, steel remains the material of choice 54

56 Steel grades and process optimization support OEMs effort towards safety, fuel economy and reduced CO² emission Grams CO²/km normalised to NEDC* Global CO2 (or equivalent) regulation trends No 1 in automotive steel Global automotive manufacturing presence through own facilities and JVs Global distribution network Unique product offerings to meet OEMs demand for safety, fuel economy and reduced CO2 emission (S-in Motion 20% weight reduction) Relative stability of margin: 20-30% of average selling price is attributable to the value added nature of the product Strong market share in our core markets Strong and consistent investment in R&D 2013 auto shipments by geography Europe 54% Nafta 38% South America 6% Source: ICCT South Africa 2% Worldwide ArcelorMittal R&D involving automotive suppliers / industrial partners *New European Driving Cycle is designed to assess the emission levels of car engines and fuel economy in passenger cars 55

57 What General Motors says about high-strength steel Quote from GM s statement on 25 September The technology of advanced high-strength steel makes the Chevrolet Silverado stronger, lighter, more capable and more efficient and that s exactly what the Toughnology concept represents, said Jeff Luke, executive chief engineer. During the Silverado s development, we evaluated all materials and chose those that would provide the best strength to support capability while still delivering a strong value to customers. Source: GM Press Release High-strength steel had clear advantages and is a contributor to the overall package that made Silverado the 2014 North American Truck of the Year. Jeff Luke, GM executive chief engineer 56 56

58 What Volvo says about hot formed steel Quote from Volvo s statement on 22 July 2014 To help Quote from Volvo s statement on 22 July 2014 To help keep the occupant space inside intact in a crash, the all-new XC90 has literally been made stronger in every sense. This is achieved by more extensive use of hot-formed boron steel, which is the strongest type of steel presently used in the car body industry. The complete safety cage around the occupants is made from hot-formed boron steel and is designed for maximum occupant protection in all types of crash scenarios. The hot-formed steel amounts to about 40 per cent of the total body weight. Volvo Press Release keep the occupant space inside intact in a crash, the all-new XC90 has literally been made stronger in every sense. This is achieved by more extensive use of hot-formed boron steel, which is the strongest type of steel presently used in the car body industry. The complete safety cage around the occupants is made from hot-formed boron steel and is designed for maximum occupant protection in all types of crash scenarios. The hot-formed steel amounts to about 40 per cent of the total body weight. Source: Volvo Press Release This is approximately five times more than the first generation XC90. To our knowledge, this high usage of high-strength steel is unique compared with our competitors. Prof. Lotta Jakobsson, Senior Technical Specialist Safety at Volvo Cars Safety Centre 57 57

59 Case study: 2013 Ford Fusion Ford s challenge: Replace conventional design for roof rails and b-pillars, two critical safety structures, in the 2013 Ford Fusion to achieve significant weight reduction and cost while improving safety performance ArcelorMittal s solution: Recommended first-ever use of hydro-formed tubes using DP980/550, an ultra high strength steel grade, for roof rails and b-pillars Three year development process in partnership with Ford and its hydro-forming partners Proven results: 12 lb. weight savings/vehicle over previous design, reducing 2013 fleet by nearly 5 million lbs. - Weight savings translated to a significant cost reduction, according to Ford Improved fuel economy: 23/33 MPG for 2013 (FWD, 2.0 liter engine) vs. 17/25 MPG for 2012 Enhanced structural performance over prior design, earning Insurance Institute for Highway Safety (IIHS) Top Safety Pick+: - tubular structure provides a continuous closed section that optimizes sectional properties due to lack of weld flanges and eliminates joints - intrusion at the roof rail was about 2.5 inches less than baseline vehicle Copyright ArcelorMittal 58

60 Case study: 2014 Acura MDX Proven results: 8.6 lbs. weight reduction per vehicle, reducing 2014 fleet by 602,000 lbs. Improved fuel economy: 18/27 MPG for 2014 Acura MDX (AWD, V6) vs. 16/21 MPG for 2013 Received the highest available safety ratings: - IIHS Top Safety Pick+, including a top rating for the new small overlap crash test - 5-Star Overall Vehicle Score by the National Highway Traffic Safety Administration (NHTSA) Offers improved energy management through uninterrupted joints for smooth load path and improved fit and finish by controlling front and rear door hinges on one part We had to rethink how could we redistribute these even more concentrated loads in a way that we keep people safe. One of the ways we did this was with the new hot-stamped door ring. The entire structure around the doors are made with this super strong high-strength steel. To our knowledge, we are the first and only people that apply hot stamping in this way. Weight was one of the ways to improve fuel economy. Taking weight out of a car and making a car stronger is not an easy thing. In spite of being a much stronger, safer car, it is 275 pounds lighter than the outline car. - Jim Keller, 2014 Acura MDX Chief Engineer* * Source: Honda Acura website video: 59

61 Case study: 2014 Acura MDX Small offset crash performance comparison IIHS 2013 Other OEM Design without hot-stamped door ring IIHS 2014 Acura MDX Design with hot-stamped door ring Note deformations in the door opening area on comparison vehicle; ability to open the driver side door after the crash event in 2014 Acura MDX 60

62 What Volkswagen says about steel solutions 2013 Volkswagen GOLF 7 chassis According to an interview with Volkswagen for Truth About Cars, VW found that new high strength steels are: Six times stronger than conventional steels they replace Instrumental in achieving a weight reduction of 100 lbs. in the 2013 VW Golf Volkswagen replaces aluminum with steel to save weight and money, by Bertel Schmitt, Truth About Cars, Jan Volkswagen is using high strength steels in increasing amounts. It is a very cost effective way of reducing weight. Using new innovations in steel engineering it is possible to reduce weight without the use for more costly materials such as aluminum and carbon fiber. Armin Plath, Head of Materials Research and Manufacturing, Volkswagen 61

63 Ultra lightweight steel door C-segment vehicle Baseline Front Door S-in motion S1 Lightweight steel door Short term Ultra lightweight steel door - Market ready Tensile strength values 18.3kg Weight breakdown 14.5kg Weight: 13.3 kg Weight savings: 4.9 kg / 27% Cost savings vs Alu: 30% 13.3kg Short term Steel grades 1. Door inner 12kg Medium term Laser welded blank AM05 0.8mm /0.6mm 2. Waist beam MS mm & DP Door beam Usibor Hinge reinforcements Usibor Outer panel FF280DP (490DP) 0.6mm Opening the door to more weight savings 62 62

64 Balance sheet 63

65 Disciplined capex Capex split ($ billions) Growth capex split ($ billions, % of spend) % % 2012 was peak mining capex % % 75% 87% 35% 65% F F Growth Maintenance Focus on average capex level as there is some carry over of maintenance spend from 2013 into 2014 Steel growth Mining growth Growth capex continues to decline; lower mining capex frees up capital for steel 64

66 Balance sheet structurally improved Net debt ($ billion) Average maturity (years) % Q Q 2014* 3Q Q 2014 Liquidity ($ billion) Bank debt as component of total debt (%) % % 3Q Q Q Q 2014 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). *As at September 30, 2014, net debt includes $0.1 billion from distribution centers in Europe held for sale 65

67 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 Working capital OWCR and rotation days* ($ billion and days) Working capital ($ billion) - LHS Rotation days - RHS Business will invest in working capital as conditions necessitate * Rotation days are defined as days of accounts receivable plus days of inventory minus days of accounts payable. Days of accounts payable and inventory are a function of cost of goods sold of the quarter on an annualized basis. Days of accounts receivable are a function of sales of the quarter on an annualized basis. 66

68 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 Net debt Net Debt ($ billion) & Net Debt/LTM reported EBITDA* Ratio (x) Net Debt ($ billion) - LHS Net Debt / LTM EBITDA Net debt increased by $0.4bn due to WC investment & dividends partly offset by forex * Based on last twelve months (LTM) reported EBITDA. Figures prior to 1Q 12 have not been recast on quarterly basis for adoption of new accounting standards implemented from

69 Liquidity and debt maturity profile Liquidity at September 30, 2014 ($ billion) Debt maturities ($ billion)* Unused credit lines Commerical Other Bonds Cash Commercial paper Bonds Other loans Liquidity at 30/9/14 Debt due in >2018 Liquidity lines: $3.6bn syndicated credit facility matures 18/03/16 $2.4bn syndicated credit facility matures 06/11/18 Debt maturity: Continued strong liquidity Average debt maturity 6.1 years Ratings S&P BB+, negative watch Moody s Ba1, negative outlook Fitch BB+, stable outlook Continued strong liquidity position and average debt maturity of 6.1 years * On October 30, 2014, the Company redeemed its 9.0% Notes due February 15, 2015 and its 3.750% Notes due February 25, 2015 prior to their scheduled maturity. For purposes of the Company s debt maturity profile table, these two issuances have been excluded from 2015 debt repayments and included in 2014 debt repayments. 68

70 Deployment of FCF Priority #1 Reduce Net Financial Debt to $15bn Future options Reduce NFD Increase dividends Growth Board will determine uses of FCF only after key shareholder s consultation 69

71 Overview 70

72 Key operational data overview NAFTA (USDm) unless otherw ise show n 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 EBITDA Crude steel production (Mt) 6,206 6,230 6,057 5,822 6,379 5,720 6,454 6,361 6,256 6,153 6,485 Steel shipments (Mt) 5,620 5,803 5,511 5,460 5,565 5,433 5,774 5,728 5,613 5,790 5,866 EBITDA/tonne (US$/t) BRAZIL (USDm) unless otherw ise show n 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 EBITDA Crude steel production (Mt) 2,645 2,408 2,301 2,518 2,400 2,561 2,576 2,450 2,413 2,382 2,971 Steel shipments (Mt) 2,425 2,507 2,191 2,531 2,407 2,487 2,559 2,344 2,325 2,312 2,844 EBITDA/tonne (US$/t) EUROPE (USDm) unless otherw ise show n 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 EBITDA Crude steel production (Mt) 10,365 10,403 9,800 9,208 10,419 10,531 10,522 10,451 10,899 10,941 10,837 Steel shipments (Mt) 10,397 9,738 8,602 8,794 9,527 10,011 9,257 9,474 10,009 10,191 9,829 EBITDA/tonne (US$/t) ACIS (USDm) unless otherw ise show n 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 EBITDA Crude steel production (Mt) 3,615 3,692 3,720 3,241 3,245 3,681 3,710 3,726 3,413 3,600 3,616 Steel shipments (Mt) 3,373 3,350 3,201 2,997 3,118 3,087 3,208 3,009 3,187 3,306 3,229 EBITDA/tonne (US$/t) Mining (USDm) unless otherw ise show n 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 EBITDA GROUP (USDm) unless otherw ise show n 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 Upgrade 1Q 14 railway line 2Q linking 14 mine to port 3Q 14 in Liberia EBITDA 2,118 2,559 1,445 1,557 1,565 1,700 1,713 1,910 1,754 1,763 1,905 Crude steel production (Mt) 22,831 22,732 21,880 20,788 22,443 22,493 23,263 22,987 22,981 23,076 23,909 Steel shipments (Mt) 21,712 21,291 19,455 19,724 20,483 20,924 20,721 20,482 20,968 21,457 21,523 EBITDA/tonne (US$/t)

73 Global scale, regional leadership Key performance data 9M 2014 ($ billion) NAFTA Brazil* Europe Mining ACIS Revenues ($bn) % Group** 26% 12% 50% 6% 10% EBITDA ($bn) % Group** 16% 24% 32% 20% 9% Shipments (M mt) *** 9.7 % Group 27% 12% 46% 15% ~227,000 employees serving customers in over 170 countries Global scale delivering synergies The presentation in this slide reflects the reporting segments that the Company intends to adopt as from its first quarter 2014 results. The change in segments results from the Company s organizational and management restructuring announced in December * Brazil includes neighboring countries ** Figures for others and eliminations are not shown; *** Iron ore shipments only (market price plus cost plus tonnage) 72

74 Largely exposed to the developed markets of NAFTA and EU Sales as % of total Group CANADA 4% MEXICO 3% USA 20% NAFTA 26% EU 39% BELGIUM 2% FRANCE 6% GERMANY 9% ITALY 3% SPAIN 5% Others 6% EU 15 30% CZECH REPUBLIC 2% POLAND 4% ROMANIA 1% Others 2% Rest EU 9% EU 39% Africa, 7% BRAZIL 8% ARGENTINA 2% Others 3% LATAM 13% LATAM 13% Africa 7% Approximately 2/3 of sales to developed markets 73

75 Segment highlights Segmental EBITDA* (US$mn) Iron ore (mt) Own iron ore prod Shipped at market price +73% % +3% -8% % NAFTA Brazil Europe ACIS Mining Q 13 4Q Q 14 Shipped at cost plus Q 14 3Q ,000 Segmental shipments (kt) +6% 250 Segmental EBITDA/tonne (US$/t) 10, ,000 6,000 4,000 2, % NAFTA +11% Brazil Europe +1% ACIS Q 13 4Q 13 1Q 14 Q2 14* Q3 14 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 NAFTA Brazil Europe ACIS Improving YoY segment performance except Brazil and Mining * Segmental figures shown above include one time adjustments; NAFTA EBITDA in 2Q 2014 of $177m included the negative impact from settlement of US litigation $90m 74

76 Improvement NAFTA Crude steel achievable capacity (million Mt) Geographical footprint and logistics % Flat Flat 76.0% Contrecoeur Long USA Canada Mexico Long 24.0% NAFTA Vinton Riverdale Dofasco Burns Harbor Steelton IH West Cleveland IH Bar IH East Coatesville Georgetown Number of facilities (BF and EAF) Laplace NAFTA No. of BF No. of EAF USA 9 7 Canada 3 4 Mexico 1 4 Total Lazaro Cardenas Las Truchas NAFTA facilities Flat Long Flat and Long The map is showing primary facilities excl. Pipes and Tubes. NAFTA leading producer with 31Mt /pa installed capacity 75

77 NAFTA EBITDA ($ Millions) and EBITDA/t $72/t $31/t $73/t $59/t $50/t +2.8% -13% Due to severe weather impact Analysis 3Q 14 v 2Q 14 Crude steel production up 5.4% primarily due to completion of BF reline in Indiana Harbor No.7 in 3Q Q 13 Average steel selling price $/t 818 2Q 14* +4.3% 856 Steel shipments (000 t) 853 3Q 13 2Q 14 3Q % 3Q M 13 9M 14* +2.3% M 13 9M % Steel shipments up 1.3% driven by: +2.9% increase in flat products reflecting improved demand -1.8% decrease in long products Average steel selling prices (ASP) down 0.4% driven by: -3.1% decrease in long products and remained stable for flat products EBITDA up 142.2%: 2Q 14 was negatively impacted by $90 million litigation costs as well as residual costs associated with severe winter incurred in 1Q 14 (circa $150 million) 5,774 5,790 5,866 16,772 17,269 3Q 13 2Q 14 3Q 14 9M 13 9M 14 NAFTA profitability improved 3Q 14 v 2Q 14 * EBITDA in 2Q 14 of $177 million was negatively impacted by $90 million following the settlement of US antitrust litigation; as well as residual costs associated with severe winter in 1Q 14 (~$150 million) ;total 1H 14 weather impact (~$350 million) 76

78 Improvement Brazil Crude steel achievable capacity (million Mt) Geographical footprint and logistics % Flat Flat 56.0% Point Lisas Long Long 44.0% Monlevade Cariacica Piracicaba Juiz de Fora Brazil Argentina Trinidad Brazil Tubarao Number of facilities (BF and EAF) Acindar No. of BF No. of EAF Flat 3 - Long 3 8 BRAZILfacilities Flat Long Total 6 8 The map is showing primary facilities excl. Pipes and Tubes. Brazil leading producer with 13.5Mt /pa installed capacity 77

79 Brazil EBITDA ($ Millions) and EBITDA/t $194/t $179/t $162/t $188/t $174/t -7.5% , % 1,299 Analysis 3Q 14 v 2Q 14 Crude steel production up 24.7% following restart of ArcelorMittal Tubarao blast furnace No.3 on July 6, Q 13 2Q 14 3Q 14 Average steel selling price $/t -3.0% 9M % 9M 14 Steel shipments up 23% primarily on account of higher slab shipments from Brazil post restart of blast furnace No.3 at Tubarao Q 13 2Q 14 Steel shipments (000 t) +11.1% 3Q 14 Due to BF3 Tubarao restart M 13 9M % ASP down 7.3% driven by: -1.9% decrease for flat products excluding mix impact -1.2% decrease for long products 2,559 2,312 2,844 7,453 7,481 EBITDA up 11.1% 3Q 13 2Q 14 3Q 14 9M 13 9M 14 Brazil profitability improved 3Q 14 v 2Q 14 78

80 Improvement Europe Crude steel achievable capacity (million Mt) Geographical footprint and logistics 54.1 Flat Flat 100.0% 72.0% Dunkirk Bremen Duisburg Ghent Liège Florange Hamburg EHS Belval; Differdange Dabrowa Krakow Ostrava Asturias Fos Zenica Galati Long Long 28.0% Europe Annaba Number of facilities (BF and EAF) EUROPE No. of BF No. of EAF Flat 20 5 Long 5 10 Total EUROPE facilities Flat Long Flat and Long The map is showing primary facilities excl. Pipes and Tubes. Europe leading producer with 54.1Mt /pa installed capacity 79

81 Europe EBITDA ($ Millions) and EBITDA/t $33/t $68/t $53/t $42/t $58/t Analysis 3Q 14 v 2Q % Q 13 2Q 14 3Q 14 Average steel selling price $/t -3.3% Q 13 2Q 14 3Q 14 Steel shipments (000 t) +6.2% 9,257 10,191 9, % 1,213 1,747 9M 13 9M % M 13 9M % 28,795 30,029 Crude steel production decreased by 0.9% Steel shipments down 3.6% driven by: 2.2% and 5.9% decrease in flat and long products respectively, following seasonally lower demand ASP lower primarily due to euro weakness : -5.4% decrease in flat products -4.0% decrease in long products EBITDA down 24.2% mainly driven by lower shipments and the translation impact following a weaker euro 3Q 13 2Q 14 3Q 14 9M 13 9M 14 Europe profitability declined 3Q 14 v 2Q 14 80

82 Improvement ACIS Crude steel achievable capacity (million Mt) Geographical footprint and logistics Flat Long % Flat 40.0% Kryviy Rih Temirtau Kazaksthan Ukraine S Africa Long 60.0% ACIS 4 Number of facilities (BF and EAF) ACIS No. of BF No. of EAF Saldanha Vanderbijlpark Vereeniging Newcastle Kazakhstan 3 0 Ukraine 5 0 South Africa 4 2 ACIS facilities Flat Long Total 12 2 The map is showing primary facilities excl. Pipes and Tubes. ACIS leading producer with 21Mt /pa installed capacity 81

83 ACIS EBITDA ($ Millions) and EBITDA/t $34/t 110 3Q 13 $47/t $64/t $28/t $49/t +89.5% 156 2Q 14 Average steel selling price $/t -2.1% 208 3Q M % -5.6% 473 9M Analysis 3Q 14 v 2Q 14 Crude steel production was stable. Production was higher in Kazakhstan and Ukrainian, offset in part by lower South African production following the on-going reline at Newcastle blast furnace Steel shipments down 2.3% primarily driven by lower exports 3Q 13 2Q 14 3Q 14 Steel shipments (000 t) +0.7% 3,208 3,306 3,229 9M 13 9M % 9,413 9,722 Sales decreased 13.3% primarily due to lower sales of non-steel products and lower steel shipment volumes EBITDA +33.7% mainly driven by improved performance (prices and costs) in the CIS countries 3Q 13 2Q 14 3Q 14 9M 13 9M 14 ACIS profitability improved 3Q 14 v 2Q 14 82

84 Improvement Mining Geographical footprint and logistics Iron ore reserves as of Dec 31, 2013 Central Asia Easten Europe 6% 7% West Africa 11% South America 3% 48% Canada 8% Central America 10% 8% USA Baffinland Total 4.6bn MT reserves Coal reserves as of Dec 31, 2013 Kazakhstan 9% 35% USA Iron ore capacity of 70Mt in 2014 Own total iron ore production in 2013 of 58.4Mt; 47.2MT for 9M 14 Total iron ore shipments in 2013 of 59.6Mt; 47.4MT for 9M marketable iron ore shipments of 35.1Mt (growing by at least 15% in 2014) Russia 56% Total 0.3bn MT reserves Leading mining producer with 70Mt iron ore capacity 83