ArcelorMittal: Leading the way. Aditya Mittal, group President and CFO, CEO ArcelorMittal Europe European media day, 11 December 2018

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1 ArcelorMittal: Leading the way Aditya Mittal, group President and CFO, CEO ArcelorMittal Europe European media day, 11 December 2018

2 Safety is our priority Health & Safety Lost time injury frequency (LTIF) rate* Mining & steel, employees and contractors Health & Safety performance On target for the best annual safety performance since ArcelorMittal was created Efforts to improve the Group s Health and Safety record will continue Our focus is on further reducing the rate of severe injuries and fatality prevention Q18 2Q18 3Q18 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

3 Structural industry improvement has led to healthy industry utilisation rates Significant supply side reform in China, but more to do China has cut 140 million tonnes of official capacity Central government steel capacity replacement policy: any new capacity should be matched by capacity closures of equal size However, Chinese overcapacity persists and further cuts are required; we believe a total of 250 million tonnes of capacity reduction in China is needed 3

4 Some trade progress, but a permanent solution still required Free trade vs. fair trade Global overcapacity has led to significant distortion in trade flows Imports, particularly into Europe, remain at elevated levels Further policy support necessary a permanent solution is required 4

5 Demand growth in 2019, but slowing ArcelorMittal 2018 ASC demand estimates worldsteel 2019 short range outlook US +2.0% to +3.0% NAFTA +1.0% EU % to +3.0% EU % China +1.0% to +2.0% China 0% Brazil +5.5% to +6.5% C&S America +4.3% CIS +2.0% to +3.0% CIS +0.9% Global ex China +3.0% to +4.0% Global ex China +2.7% Global +2.0% to +3.0% Global +1.4% 5

6 Committed to further decarbonisation Decarbonisation efforts Increase scrap utilisation rates and pursue continual improvement in BF reliability Carbon capture and reuse project with LanzaTech Torrefaction: using waste biomass as a PCI replacement IGAR: Plasma tech to capture CO₂ injected into blast furnace 6

7 Creating sustainable value Through internal and external strategic initiatives 7

8 Re-positioning Ilva as one of Europe s leading steelmakers Europe s largest single-site steel producer, complemented by high-quality finishing facilities Compelling strategic fit, geographically complementary; provides access to Europe s second largest steel market Perfect opportunity for ArcelorMittal: large scale, underperforming asset with significant improvement potential 2.4bn investment programme: Improve environmental performance to at or above European BAT levels Increase finished steel shipments to 9.5 million by 2024 Taranto: Integrated plant for production and sale of HRC, plates, pipes and tubes Genoa: Cold rolling, hot dip galvanising and tin plate capacities Unique opportunity to create value for ArcelorMittal 8

9 Strengthening our leading position in the Brazilian long products market ArcelorMittal & Votorantim long businesses New market leader Consolidation of the Brazilian long products market through the acquisition of Votorantim, at an opportune time as the Brazilian economy emerges from recession Combined business has annual crude steel capacity of 5.1 million tonnes Geographically complementary production facilities, enabling higher service level to customers, economies of scale, higher utilisation and efficiencies. Barra Mansa Sao Paulo Minas Gerais Monelevade Juiz de Fora Rio de Janeiro Piracicaba Barra Mansa plant Resende Resende plant 9

10 Essar Steel: Entering the high-growth Indian steel market 10

11 Creating long-term value A stronger, more sustainable business Delivering on Action 2020 Essar Steel Leveraging R&D and technological capabilities ILVA/ArcelorMittal Italia Increasing higheradded value products Votorantim Internal growth Expanding the footprint 11

12 Conclusion and Q&A Thanks to our steel Europe s access to natural gas is safeguarded through the 870 km Trans-Adriatic Pipeline (TAP) connecting Europe to Turkey Condesa 1 in 5 safety barriers installed in Europe uses structural steel or Magnelis solutions for safer roads 1 in 2 residential steel roofs in Poland is made with ArcelorMittal s Granite Bahria Tower, Pakistan s tallest building, has been erected with our galvanized flooring profiles 1 in 3 shale gas plants worldwide uses our steel for coil tubing 1 in 3 large onshore transmission pipes in Europe is made with ArcelorMittal steel Ruth Peterkin/Shutterstock.com 1 in 2 cruise ships built in Europe is manufactured with our steel Ververidis Vasilis/Shutterstock.com Our thick gauge high strength steel is used in TANAP s km long natural gas pipeline from Turkey to Greece 1 in 3 small diameter welded boiler tubes in Europe is made with our steel 1 in 4 agricultural plough discs manufactured in Europe uses our boron steel The world s largest photovoltaic plants based in the Middle East are using Magnelis 1 in 2 drums produced in Europe is made with our drawing steel 1 in 3 heat shields in HVAC in Europe is made with Alusi, our heat protection coated steel 1 in 4 European wind towers is produced with our heavy plate Suwit Ngaokaew/Shutterstock.com 12