1Q 2013 Results. Lakshmi N Mittal, Chairman and Chief Executive Officer Aditya Mittal, Chief Financial Officer. 10 May 2013

Transcription

1 1Q 213 Results Lakshmi N Mittal, Chairman and Chief Executive Officer Aditya Mittal, Chief Financial Officer 1 May 213

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 Annual Report on Form 2-F for the year ended December 31, 212 filed 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 Agenda Results overview and recent developments Market outlook Results analysis Outlook and guidance 2

4 Continued improvement in safety Quarterly Health & Safety frequency rate* for mining & steel 213 Target Q 213 Health and safety performance with LTIF rate of.9x in 1Q 13 and Health 1.1x in and 4Q 12 safety performance improved with Lost Time Injury Frequency Rate of 1.x in 1Q 13. The Company s effort to improve the group s Health and Safety Improvements record will continue. performance in Flat Carbon Americas partially offset by deterioration in the Mining division. All other Whilst segment the LTIF performance target of 1.x remained is maintained relatively for constant 213, the quarter Company on quarter. is focused on further reducing the rate of severe injuries and fatality prevention Governance, people, community and sustainability initiatives For the 6th consecutive year, ArcelorMittal USA has been awarded the 213 ENERGY STAR by the U.S. Environmental Protection Agency (EPA), for its sustained efforts in energy efficiency improvement. Best practice applications and targeted investments helped achieve an annual 1.87% reduction in energy intensity during 212. ArcelorMittal Florange, France, launched the world s first production line for Usibor extra-wide sheets up to 1,85mm. Usibor steel meets in a cost effective way the automotive customer requirements to reduce the weight of vehicles, thus cutting tailpipe emissions and CO2 in particular, whilst also improving their safety performance in use. ArcelorMittal was presented gold class within the steel sector in the 213 RobecoSAM Sustainability Yearbook. This annual assessment benchmarks the performance of the world s largest 2,5 companies in ethics, the environment and social areas. It is also the basis for the Dow Jones Sustainability Index (DJSI). In April 213, ArcelorMittal hosted its 7th annual Health and Safety Day at its sites globally. The theme, Stop, think and act safely, is continued this year to reflect the importance of this message. Our goal is to be the safest Metals & Mining company * WSA: LTIF = Lost time injury frequency defined as Lost Time Injuries per 1.. worked hours; based on own personnel and contractors 3

5 1Q 213 highlights EBITDA of $1.6bn in 1Q 13 compared to $1.6bn in 4Q 12* Steel shipments of 2.9Mt, an increase of 4.7% vs. 4Q 12 Own iron ore production 13.1Mt; 7.3Mt of iron ore shipped at market price compared to 6.8Mt in 1Q 12 (on track for ~2% growth in 213) Net debt at end of 1Q 13 of $18bn as compared to $21.8bn at end of 4Q 12 Liquidity of $18bn at end of 1Q 13 and average debt maturity of 6. years Cost improvement: $1bn asset optimization savings run-rate target achieved; $.2bn management gains achieved during 1Q 13, inline with the new plan to achieve $3bn of improvement by the end of 215 Sequential improvement in underlying EBITDA and significant net debt reduction * On January 1, 213, in accordance with IFRS as issued by the international Accounting Standards Board, ArcelorMittal adopted IFRS 1 ( Consolidated Financial Statements ), IFRS 11 ( Joint Arrangements ), IFRS 12 ( Disclosure of Interests in Other Entities ), IFRS 13 ( Fair Value Measurement ), the revision of IAS 19 ( Employee Benefits ) and IFRIC 2 ( Stripping Costs in the Production Phase of a Surface Mine ). 212 information has been adjusted retrospectively for the mandatory adoption of these new standards and interpretations except for IFRS 13 which is applied prospectively. The impact on 4Q 212 was $234 million, including the reversal of the $11 million charge relating to the recognition of additional actuarial losses which is now recognised through equity under IAS 19. EBITDA 4Q 212 included $.5 billion of gains from asset disposal and CO2 credit sales. EBITDA in 1Q 213 was positively impacted by a $47 million fair valuation gain relating to the acquisition of an additional ownership interest DJ Galvanizing in Canada. 4

6 Deleveraging process on course Net debt progression $billion ~ Q 11 4Q 12 1Q 13 2Q 13F Medium term target Net debt/ltm EBITDA* 2.3x 2.8x 2.5x On track to meet interim target of ~$17 billion net debt by mid-year 213 * Ratio of Net debt/ltm EBITDA is based on last twelve months reported EBITDA. Figures based on recast EBITDA as per new accounting standards adopted. 5

7 Asset Optimization delivering Asset Optimization savings achieved ($ million) Essential components have been announced: Residual Costs Run Rate-Savings 4Q 211 Extended idling of electric arc furnace in Madrid Restructuring costs at certain other Spanish, Czech Republic and AMDS operations 1Q 212 Extended idling of electric arc furnace and continuous caster at the Schifflange site (Luxembourg) Further optimization in Poland and Spain 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 Including residual costs, the targeted runrate savings of $1bn has been achieved Residual costs should disappear from the system by 214 Savings apparent in improved reported results 4Q 212 Closure of 2 blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium decided Long term idling of liquid phase at the Florange site announced 1Q 213 Announced intention to permanently close the coke plant and six finishing lines in Liege, Belgium Mothballing Florange Targeted $1bn savings run rate achieved; traction apparent in improved results 6

8 Cost improvement underway New $3bn management gains program ($ billion) Annualized savings Gap Analysis for Cost Savings per Main Drivers Savings targets 1Q 13 achieved 3. Others 28% 29% Yield Energy 21% 22% Productivity.2 Gap Analysis for Cost Savings by Process 213F 214F 215F 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 Cold rolling mill & HDG Hot strip mill Gap analysis completed in 212 defined the priorities for plan 1% 2% Others 11% Sinter & BF 25% 34% Steel shop 7

9 Iron ore growing; plans on track Liberia Phase 2 project underway (to expand capacity from 4Mt DSO to 15Mt premium concentrate) All major equipment procurement complete Civil works at the port are advancing and will be completed this year; camp preparation, access roads and environmental control dams near completion Phase 1 achieved record shipments in March 213. CAPACITY AMMC Capacity expansion from 16Mt to 24Mt All electrical rooms are energised, final installation and pre-operational verification checks in progress First concentrate due in June 213 from new Line 7; optimization and ramp-up on track Baffinland Early Revenue Phase approved to haul 3.5Mtpa of DSO by truck from the mine site to Pond Inlet for export during open-water season $7m* project capex in 5:5 JV Local agreements and licenses expected in 2Q 13 to start construction work this summer Iron ore growth target on track 84MT capacity by 215 Growth plan remains on track for 84MT capacity by 215 * Includes consideration from JV partner (Nunavut Iron Ore) for additional equity stake increase from 3% to 5%. 8

10 Demand forecasts trimmed but still positive ArcelorMittal weighted global manufacturing PMI* 6 Global apparent steel consumption (ASC) growth forecast in 213** (v 212) US +2-3% Expansion Contraction EU27 China Brazil % % +3-4% 4 CIS % Global +3.% Global ASC expected to grow by ~3% in 213 Source: * Markit. Purchasing managers indices for over 4 countries weighted by share of ArcelorMittal finished steel deliveries. ** ArcelorMittal estimates 9

11 Financial results 1

12 EBITDA bridge from 4Q 12 to 1Q 13 ($million) 1,557 Mining impact 19 1,565 (242) Steel impact (2) (22) 184 1,95 4Q 12 EBITDA Paul Wurth CO2 gain* Comparable 4Q 12 EBITDA Volume & Mix - Steel Price / Cost - Steel Volume & Mix - Mining Price / Cost - Mining Others** 1Q 13 EBITDA Underlying EBITDA improvement driven by steel volumes and positive Price/Cost * The proceeds from the sale of carbon dioxide credits will be re-invested in energy saving projects ** Others primarily represents delta of DDH income ($49 million), forex and DJ Galvanizing gain $47 million. 11

13 EBITDA to net loss Depreciation: (1,161) ($ million) Interest: (478) Forex and other: (155) 1Q 213 (1,161) 1,565 (18) 44 (633) Current tax: (61) Deferred tax: (36) Non-controlling: (1) (247) Weighted Avg No of shares: 1,75 Diluted Weighted Avg No of shares: 1,751 EPS = $ (.21)/share Diluted EPS = $ (.21)/share (345) (98) EBITDA ($ million) 1,557 Depreciation impairment and restructuring charges Operating Income/ (loss) Depreciation: (1,24) Impairment: (4,836) Restructuring: (192) Income from Equity Finance Cost Interest: (478) Forex and other: (49) Pre-tax Profit /loss) Current tax: (94) Deferred tax: 1,65 Non-controlling: 96 Taxes and noncontrolling Interest Net Ioss Weighted Avg No of shares: 1,549 Diluted Weighted Avg No of shares:1,549 EPS = $ (2.47)/share Diluted EPS = $ (2.47)/share 4Q 212 (6,268) (4,711) (5,46) (3,88) 138 (887) Q1 13 net loss of $.3bn 1,652 12

14 EBITDA to free cash flow Q1 213 free cashflow waterfall ($ million) (549) 1,565 (1,318) Change in working capital Net financial cost, tax expense, and others* (32) (927) (1,229) EBITDA Cashflow from operations Capex Free cashflow Working capital investment and capex resulted in $1.2bn negative free cashflow * Include pension expense, non cash items etc. 13

15 Net debt bridge 1Q 213 net debt analysis ($ million) -3,771 1, ,978 21, ,2 Net debt at 4Q 12 Free cashflow M&A* MCN/Equity Forex & others Net debt at 1Q 13 Equity issue and AMMC stake sale reduced NFD inline with targets 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). *M&A primarily includes $81 million from first tranche of 15% stake disposal in AMMC 14

16 Mandated accounting changes New accounting standards have been adopted as of Jan 213. Financial information for prior periods have been recast There is no cash impact from these changes The accounting changes increased 212 EBITDA by $445m (no amortization as the liabilities have now been brought onto the balance sheet) 212 EBITDA was also recast for the different accounting treatment of one-off items (Dofasco pension credit in 1Q 12 and AM USA actuarial assumption change in 4Q 12) Net financial expense increased by $.2bn in 212 (related to the application of a single rate on net employee benefit liabilities) $5.1bn increase in liabilities offset by $.4bn deferred tax asset (a further $1.3 billon DTA will be recognized in the future) Impact of accounting changes ($millions) EBITDA (USDm) 21 FY 211 FY 212 FY EBITDA previously reported 8,525 1,117 7,8 Accounting changes Non-recurring accounting change Recast EBITDA 8,731 1,45 7,679 Impact of net income ($millions) 15

17 Outlook and guidance framework 213 EBITDA expected to be above $7.1 billion Framework assumptions: Iron ore prices similar to 212 ($13/t*) Margin of steel prices over raw material costs similar to the levels of 212 (i.e. no further compression) Normal seasonal demand patterns Improved underlying profitability is expected to be driven by 3 factors: 2% increase in steel shipments; an approximate 2% increase in marketable iron ore shipments realised benefits from Asset Optimization and Management Gains initiatives EBITDA in 2Q 213 is expected to be above 1Q 213 levels. Together with an anticipated release of working capital and receipt of previously announced disposal proceeds, this should support a further reduction in net debt to approximately $17 billion by end June capital expenditures are expected to be approximately $3.5 billion Company expects 213 EBITDA to be above $7.1 billion * 62% Fe CFR China. 16

18 Appendix

19 1Q 13 apparent demand growth driven by robust China demand Global apparent steel consumption (ASC)* (million tonnes per month) US and European apparent steel consumption (ASC)** (million tonnes per month) Developing ex China China Developed EU27 USA 15 3 Jan-7 May-7 Sep-7 Jan-8 May-8 Sep-8 Jan-9 May-9 Sep-9 Jan-1 May-1 Sep-1 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 Jan-7 May-7 Sep-7 Jan-8 May-8 Sep-8 Jan-9 May-9 Sep-9 Jan-1 May-1 Sep-1 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 Global ASC +6.2% in 1Q 13 vs. 4Q 12 Global ASC +2.6% in 1Q 13 vs. 1Q 12 China ASC +1.2% in 1Q 13 vs. 4Q 12 China ASC +8.2% in 1Q 13 vs. 1Q 12 US ASC +7.4% in 1Q 13 vs. 4Q 12 US ASC -4.6% in 1Q 13 vs. 1Q 12 EU ASC +13.9% in 1Q 13 vs. 4Q 12 EU ASC -4.5% in 1Q 13 vs. 1Q 12 Compared to strong 1Q 12, Europe and US declined YoY; growth expected 2H 13 * ArcelorMittal estimates ** AISI, Eurofer and ArcelorMittal estimates 18

20 Global indicators have weakened Global leading indicators have weakened continue to expect a pick-up in H2 13 US manufacturing still growing albeit at slower pace, supported by robust automotive market; purchasing managers index (PMI) >5 In Europe, manufacturing output continues to weaken Eurozone PMI remains below 5 for 21 consecutive months. Remains above July 12 lows Recent Chinese data mixed, as both PMI (still above 5) and industrial output growth weakened toward the end of Q1 13, while construction slowly improves Expansion Contraction ArcelorMittal weighted global manufacturing PMI* Source: *Markit. ArcelorMittal estimates Global indicators signal softer Q2 13 growth, impacted by continuing Eurozone uncertainty 19

21 US construction improving; Europe declining US residential and non-residential construction indicators (SAAR) $bn* Residential Non-residential Jan-2 Jul-2 Jan-3 Jul-3 Jan-4 Jul-4 Jan-5 Jul-5 Jan-6 Jul-6 Jan-7 Jul-7 Jan-8 Jul-8 Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Developed construction still at low levels Pickup in USA strengthening US residential construction to grow strongly off a low base, as home sales improve and permits rise to their highest level since H1 8 Private non-residential output slowly improving; Architectural Billings index (ABI) remains above 5 for the 8 th consecutive month suggesting pickup late 213 Expansion Contraction Eurozone and US construction indicators** Eurozone construction PMI USA Architectural Billings Index Jan-6 Apr-6 Jul-6 Oct-6 Jan-7 Apr-7 Jul-7 Oct-7 Jan-8 Apr-8 Jul-8 Oct-8 Jan-9 Apr-9 Jul-9 Oct-9 Jan-1 Apr-1 Jul-1 Oct-1 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 In Europe, uncertainty and weak demand drives continued fall in investment Construction PMI around 4 continues to indicate contraction in output German construction market stable, supported by strong labour market and low interest rates Construction markets in South continue to be weak, with 212 annual double digit declines in Greece, Italy and Portugal. Spain also declined further, to less than 5% of the peak, though stabilising at very low levels US residential construction improving, but European construction depressed * Source: US Census Bureau ** Source: Markit and The American Institute of Architects 2

22 Chinese industrial growth slowed in 1Q China infrastructure investment 3mma* (Y-o-Y) 75% 6% 45% 3% 15% % -15% Jan-7 Apr-7 Jul-7 Oct-7 Jan-8 Apr-8 Jul-8 Oct-8 Jan-9 Apr-9 Jul-9 Oct-9 Jan-1 Apr-1 Jul-1 Oct-1 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Crude steel finished production and inventory (mmt) Steel inventory at warehouses (RHS) Finished steel production (LHS) Steel inventory at mills (RHS) Jan-7 Apr-7 Jul-7 Oct-7 Jan-8 Apr-8 Jul-8 Oct-8 Jan-9 Apr-9 Jul-9 Oct-9 Jan-1 Apr-1 Jul-1 Oct-1 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan Recent data shows industrial output slowed in the 1Q 13 to 9.5% after rebounding to 1% year on year in 4Q 12 Infrastructure investment growth continues to be robust following an acceleration in approvals during 2H 12 Newly started construction has started to rebound in 1Q 13. Starts are up y-o-y but weak in March in response to the additional property measures introduced in Feb 13 Flat products demand is robust, despite the weakness of Shipping, as both automotive and domestic appliances grow strongly High 1Q 13 steel production has led to rise in steel inventory, particularly longs, but is still close to seasonal norms and has begun to decline in April. As mill inventories also grew in Feb 13, we expect steel production to weaken in 2Q 13 from a record 78mmt annualized in 1Q 13 Underlying demand rising in China, production to decline in 2H 13 * Mma refer to months moving average 21

23 Inventory levels declined during 1Q 13 Europe service centre inventories ( MT)* ,4 1,3 1,2 1,1 1, Jan-7 Jun-7 Nov-7 Apr-8 Sep-8 Feb-9 Jul-9 Dec-9 Flat stocks at service centres Months of supply (RHS) Jan-7 Apr-7 Jul-7 Oct-7 Jan-8 Apr-8 Jul-8 Oct-8 Jan-9 Apr-9 Jul-9 Oct-9 Jan-1 Apr-1 Jul-1 Oct-1 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 May-1 Oct-1 Mar-11 Aug-11 Brazil service centre inventories ( MT) EU (EASSC) Months Supply Jan-12 Jun-12 Nov US service centre total steel Inventories ( MT) China service centre inventories (Mt/mth) with ASC% Jan-7 May-7 Sep-7 Flat and Long % of ASC (RHS) Jan-8 May-8 Sep-8 Jan-9 May-9 Sep-9 Jan-1 May-1 Sep-1 Jan-11 May-11 USA (MSCI) Months Supply Jan-7 Apr-7 Jul-7 Oct-7 Jan-8 Apr-8 Jul-8 Oct-8 Jan-9 Apr-9 Jul-9 Oct-9 Jan-1 Apr-1 Jul-1 Oct-1 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Sep-11 Jan-12 May-12 Sep-12 Jan % 45% 4% 35% 3% 25% 2% 15% 1% 5% % Limited stock rebuild in 1Q 13; except China in anticipation of seasonal demand * Europe inventory updated data not available. 22

24 Global apparent steel consumption China 7 +55% +2% +4% EU % F % % 213F NAFTA 16-8% +2.5% +7% F Rest of World +9% 55 +4% +3% F Global ASC growth of +1.7% 212; estimated 213 ASC growth of +3% ArcelorMittal estimates 23

25 Raw material prices are slowly weakening Spot iron ore, coking coal and scrap price (index IH 28=1)* Regional steel price HRC ($/t) Iron ore Coking coal Scrap China domestic Shanghai (Inc 17% VAT) N.America FOB Midwest N.Europe domestic ex-works Jan 8 Apr 8 Jul 8 Oct 8 Jan 9 Apr 9 Jul 9 Oct 9 Jan 1 Apr 1 Jul 1 Oct 1 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jan 8 Apr 8 Jul 8 Oct 8 Jan 9 Apr 9 Jul 9 Oct 9 Jan 1 Apr 1 Jul 1 Oct 1 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Raw material prices are trending down slowly after rebounding in Q

26 Capex and growth plans Steel growth capex remains temporarily suspended 213 capex to be lower than 212 levels Focus remains on core growth capex in Mining: Liberia: Phase 1 complete and running at 4mtpa DSO; commercial ramp-up underway Andrade mines (Brazil): Iron ore expansion to 3.5mtpa completed Upgrade railway line linking mine to port in Liberia Liberia: Phase 2 approved: Expansion from 4mtpa DSO to 15mtpa concentrate by 215 underway AMMC: Expansion from 16mtpa iron ore to 24mtpa by 213 near completion 1H 13 AMMC: Further expansion to 3mtpa iron ore under study Baffinland: Early Revenue Phase (ERP) approved: 3.5mtpa production by 215 AMMC: Mont-Wright Mining Complex FY 212 capex spend of $4.7bn; FY 213 capex expected at approximately $3.5bn 25

27 Segment highlights Segmental EBITDA (US$mn) 1Q 12 2Q 12 1, Q 12 4Q 12 1Q 13 FCA: EBITDA -41.5% y-o-y; $8 EBITDA/t ASP +$22/t compared to 4Q 12 Shipments -2.% lower than 1Q 12 FCE: 1Q 13 $44 EBITDA/t ASP -$16/t compared to 4Q 12 2 Shipments -7.7% lower than 1Q 12 Long: EBITDA -6.5% y-o-y; $78 EBITDA/t -2 FCA FCE Long AACIS AMDS Mining ASP +1$/t compared to 4Q 12 Shipments -6.% lower than 1Q 12 Segmental EBITDA/tonne (US$/t) AACIS: EBITDA -88.3% y-o-y; $6 EBITDA/t 14 ASP +$9/t compared to 4Q Shipments -7.4% lower than 1Q 12 AMDS: 1Q 13 EBITDA $15m ASP +$17/t compared to 4Q 12 Shipments -11.5% lower than 1Q 12 Mining: EBITDA -1.5% y-o-y Sales -6.3% lower than 4Q 12 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 Own iron ore production -.8% lower than 1Q 12 FCA FCE Long AACIS AMDS Own coal production -3.5% lower than 1Q 12 Sequential improvement in underlying EBITDA * On January 1, 213, in accordance with IFRS as issued by the international Accounting Standards Board ( IASB ), ArcelorMittal adopted IFRS 1 ( Consolidated Financial Statements ), IFRS 11 ( Joint Arrangements ), IFRS 12 ( Disclosure of Interests in Other Entities ), IFRS 13 ( Fair Value Measurement ), the revision of IAS 19 ( Deferred Employee Benefits ) and IFRIC 2 ( Stripping Costs in the Production Phase of a Surface Mine ). The 212 information has been adjusted retrospectively for the mandatory adoption of these new standards and interpretations except for IFRS 13 which is applied prospectively. ** Segmental figures shown include one time adjustments 26

28 Flat Carbon Americas (FCA) EBITDA* (US$mn, LHS) and ASP (US$/t, RHS) +3% % Q12 2Q12 3Q12 4Q12 1Q13 Flat Carbon Americas steel shipments ( t) 5,8 5,7 5,6 5,5 5,735 5,672 5,4 5,533 5,559 1, Crude steel production increased by 4.4% to 6.2MT in 1Q 13, Vs 5.9MT in 4Q 12, driven primarily by higher production in North America, partially offset by lower production in South America Steel shipments in 1Q 13 were 5.6MT,.5% higher than in 4Q 12, primarily driven by higher shipment volumes in North America driven by improving automotive demand, offset by lower exports of slab and HRC from South America. Sales were $4.9bn in 1Q 13, an increase of 3.8% Vs $4.7bn in 4Q 12. The increase in sales was due primarily to higher steel selling prices in South America and Mexico EBITDA in 1Q 13 was positively impacted by a $47m fair valuation gain relating to the acquisition of an additional ownership interest DJ Galvanizing in Canada. Higher profitability in 1Q 13 was due to an improved performance from both the South and North American operations. North America performance was driven by higher shipments, and South American performance was driven by positive price cost impact more than offsetting the negative impact of lower volumes. EBITDA in 1Q 12 of $757m includes the positive impact of changes to the employee benefit plans at Dofasco which resulted in curtailment gains of $285m. 1Q12 2Q12 5,351 3Q12 4Q12 1Q13 FCA profitability improved in 1Q 13 Vs 4Q 12 * EBITDA in 1Q 12 was positively impacted by $285m related to curtailment gain in ArcelorMittal Dofasco. EBITDA in 3Q 12 was negatively impacted by $72m related to one-time signing bonus and post retirement benefit costs following entry into the new US labor contract. EBITDA in 1Q 213 was positively impacted by a $47 million fair valuation gain relating to the acquisition of an additional ownership interest DJ Galvanizing in Canada. The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 27

29 Flat Carbon Europe (FCE) EBITDA* (US$mn, LHS) and ASP (US$/t, RHS) % % Q12 2Q12 3Q12 4Q12 1Q13 Flat Carbon Europe steel shipments ( t) 7,5 +16% 7, 1, Crude steel production increased by 14.2% to 7.3MT in 1Q 13 as compared to 6.4MT in 4Q 12 due to a stock re-build following weak demand in the 4Q 12. Steel shipments in 1Q 13 were 6.9MT, an increase of 15.7% as compared to 6.MT in 4Q 12. Steel shipments increased in 1Q 13 due to a pick up following the seasonally weaker period. Sales increased to $6.8bn in 1Q 13 Vs $6.1bn in 4Q 12. Sales benefitted from higher steel shipment volumes offset in part by lower steel selling prices following weak iron ore pricing during Q4 12. EBITDA in 1Q 13 was $3m Vs $38m in 4Q 12. EBITDA in 1Q 13 included $92m of DDH income recognized during the quarter Vs $141m in 4Q 12 and $159m in 1Q 12. EBITDA in 4Q 12 included a $21m net gain recorded on the sale of CO2 credits, the proceeds of which will be re-invested in energy savings projects. Steel margins were positively impacted in 1Q 13 by a price-cost impact following higher fixed cost absorption and improved cost performance partially offset by lower ASP. 6,5 6, 7,461 6,771 5,837 5,957 6,89 The operating result in 4Q 12 had included a $2.5bn non-cash write down of goodwill and $.3bn non-cash impairment charge related to the intention to permanently close the coke plant and six finishing lines in Liege, Belgium. Operating performance in 1Q 12 had been negatively impacted by restructuring costs totalling $56m associated with the separation schemes primarily relating to Polish entities as part of the implementation of Asset Optimization. 1Q12 2Q12 3Q12 4Q12 1Q13 FCE profitability improved 1Q 13 Vs 4Q 12 (excluding CO2 gain) * EBITDA in 4Q 12 included $21 million related to a net gain recorded on the sale of CO2 credits, the proceeds of which will be reinvested in energy projects. The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 28

30 Long Carbon Americas & Europe (LCAE) EBITDA (US$mn, LHS) and ASP (US$/t, RHS) Q12 2Q12 3Q12 4Q12 Long Carbon steel shipments ( t) 5,9 5, Q13 1, Crude steel production amounted to 5.7MT in 1Q 13, an increase of 9.2% Vs 5.2MT in 4Q 12. Production was higher in the Americas (both North and South) and European operations due to a stock rebuild following weak demand in 4Q 12 and in anticipation of a stronger 2Q 13, as well as recovery from operational issues that had impacted output in Poland during 4Q 12. Steel shipments in 1Q 13 were 5.4MT, a decrease of 2.7% Vs 5.5MT in 4Q 12, primarily due to lower volumes in Europe, Mexico and Tubular products. Sales were lower at $5.1bn in 1Q 13, Vs $5.2bn in 4Q 12. The impact of prices was neutral as higher average selling price (ASP) across all key markets were offset by reduced prices in the Tubular business. EBITDA in 1Q 13 was $419m Vs $422m in 4Q 12, primarily driven by improved profitability in Europe, North America and South American markets offset by lower profitability in the Tubular business impacted by lower volumes and ASP following the Venezuelan currency devaluation. 5,7 5,6 5,5 5,4 5,738 1Q12 5,839 2Q12 5,58 3Q12 5,543 4Q12-3% 5,394 1Q13 Operating results in 4Q 12 had included a non-cash write down of goodwill of $1.bn and non-cash asset impairment charges for Spanish and North African operations of $.2bn. Operating performance in 1Q 12 was negatively impacted by restructuring costs totalling $46m associated with the implementation of Asset Optimization, primarily relating to Spanish entities and impairment charges totalling $61m associated with the extended idling of the EAF and continuous caster at the Schifflange site in Luxembourg. Long Carbon profitability flat 1Q 13 Vs 4Q 12 The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 29

31 3,4 3,3 3,2 3,1 3, Asia, Africa and CIS (AACIS) EBITDA (US$mn, LHS) and ASP (US$/t, RHS) Q12 2Q12 3Q12 AACIS steel shipments ( t) 3,353 1Q ,321 2Q ,178 3Q Q12 2,978 4Q12-91% +4% Q13 3,14 1Q Crude steel production was 3.2MT in 1Q 13, flat Vs 4Q 12. Production increased during 1Q 13 due in part to improved production in Kazakhstan (post Q4 12 operational issues). South African production remained flat as both 1Q 13 and 4Q 12 were impacted by operational issues (1Q 13 fire at Vanderbijlpark ( VDP ) plant and 4Q 12 interim repair of blast furnace in Vanderbijlpark and the taphole repair of blast furnace in Newcastle). Steel shipments in 1Q 13 amounted to 3.1MT an increase of 4.2% Vs 3.MT in 4Q 12, reflecting seasonally improved market conditions in the South African market. Sales in the AACIS segment were $2.1 billion in 1Q 213, flat compared to 4Q 212. Sales were positively impacted by higher average steel selling prices in South Africa and Kazakhstan (+1.5% overall) in 1Q 213 offset by the sales lost following the disposal of Paul Wurth in 4Q 212. EBITDA in 1Q 13 was $19m,Vs $222m in 4Q 12. EBITDA in 4Q 12 had included the $242m gain from the Paul Wurth asset divestment. Excluding this gain, profitability slightly improved during the quarter due to positive price-cost effect and higher volumes primarily in South Africa despite approximately $67m loss of EBITDA due to fire disruption at VDP. AACIS profitability improved 1Q 13 Vs 4Q 12 (excluding Paul Wurth sale) * EBITDA in 4Q 12 includes the positive impact from the Paul Wurth asset divestment (a gain of $242 million). The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 3

32 Distribution Solutions (AMDS) EBITDA (US$mn, LHS) and ASP (US$/t, RHS) % , Shipments in the Distribution Solutions segment in 1Q 13 were 4.1MT a decrease of 9.% Vs 4.5MT in 4Q 12, primarily due to lower exports. Sales in 1Q 13 were $3.6bn, a decrease of 7.8% Vs $3.9bn in 4Q 12, due primarily to lower steel shipment volumes offset in part by higher ASP (+2.%) primarily driven by forex. 1Q12 2Q12 3Q12 4Q12 Distribution Solutions steel shipments ( t) 4,6 4,5 4,4 4,3 4,589 4,523 4,2 4,463 4,1 4,118-9% 1Q13 4,63 EBITDA in 1Q 13 was $15m Vs $(24)m in 4Q 12, primarily due to a positive price-cost impact in Europe. The operating result in 4Q 12 had been impacted by non-cash impairment expenses of $.8bn due to a write down of goodwill and restructuring charges of $.1bn related to Asset Optimization. 1Q12 2Q12 3Q12 4Q12 1Q13 AMDS profitability improved 1Q 13 Vs 4Q 12 * EBITDA in 2Q 12 includes $339m gain from Skyline divestment. The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 31

33 Mining EBITDA ($ million) Q12 2Q12 Iron ore (million tonnes) 396 3Q12 +32% Q12 1Q13 Own iron ore production (not incl. supplies under strategic long-term contracts) in 1Q 13 was 13.1MT, 6.2% lower than 4Q 12, primarily due to operational issues in Canada offset in part by improved Liberia production. Shipments at market price increased 9.8% in 1Q 13 Vs 4Q 12 primarily due to improved shipments in Liberia on account of comparatively dry weather and installation of offshore trans-shipment facility to load cape size vessels offset in part by lower shipments from Canada due to production constraints and freezing lake constraints. Shipments at market price in 1Q 13 increased 6.9% Vs 1Q 12 primarily due to increased shipments from Liberia. Own coal production (not including supplies under strategic long-term contracts) in 1Q 13 was higher at 2.MT, an increase of 3.3% Vs 4Q 12 although a decline of 3.5% Vs 2.1MT in 1Q 12. EBITDA for 1Q 13 was $433m, 32.4% higher Vs 4Q 12. primarily due to improved seaborne iron ore market prices and higher marketable iron ore shipment volumes, offset by a negative mix effect from our higher margin Canadian volume. Coal (million tonnes) Q12 2Q12 3Q12 4Q12 1Q13 1Q12 2Q12 3Q12 4Q12 1Q13 Own iron ore prod Shipped at market price Shipped at cost plus Own coal prod Shipped at market price Shipped at cost plus EBITDA for 1Q 13 was 32% higher Vs 4Q 12 Definitions: Market priced tonnes represent amounts of iron ore or other raw materials from ArcelorMittal mines that could be sold to third parties on the open market. Market priced tonnes that are not sold to third parties are transferred from the Mining segment to the Company s steel producing segments at the prevailing market price. Shipments of raw materials that do not constitute market price tonnes are transferred internally on a cost-plus basis. Own iron ore production and own coal production excludes supplies under strategic long-term contracts) The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 32

34 Balance sheet structurally improved Net debt ($ billion) Average maturity (years) % Q 28 1Q 213 3Q 28 1Q 213 Liquidity ($ billion) Bank debt as component of total debt* (%) % 12. 1% 3Q 28 1Q 213 3Q 28 1Q 213 Balance sheet fundamentals improved * ArcelorMittal estimates 33

35 Working capital is fuel for our business OWCR and rotation days* ($ billion and days) Working capital ($ billion) - LHS Rotation days - RHS Current working capital at low levels 64 days is slightly below the average of last 3 years (67 days) Each day represents ~$2mn 1Q 7 2Q 7 3Q 7 4Q 7 1Q 8 2Q 8 3Q 8 4Q 8 1Q 9 2Q 9 3Q 9 4Q 9 1Q 1 2Q 1 3Q 1 4Q 1 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 We will invest in working capital as required Higher sales volumes requires more working capital (but same days) Days can be impacted by price 1/3 of inventory is raw materials, the remainder is mainly metal stock 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. 34

36 Liquidity and debt maturity profile Liquidity at March 31, 213 ($ billion) Debt maturities ($ billion) Unused credit lines Cash 8. Liquidity at 31/3/ Debt due in 213 Short term & others Commercial paper Bonds Commercial Paper Other Convertibles Bonds >217 Liquidity lines: $4bn syndicated credit facility matures 6/5/15 $6bn syndicated credit facility matures 18/3/16 Debt maturity: Continued strong liquidity Average debt maturity 6. years Ratings S&P BB+, negative outlook Moody s Ba1, negative outlook Fitch BB+, stable outlook Continued strong liquidity position and average debt maturity of 6. years 35

37 Net debt Net Debt ($ billion) & Net Debt/LTM reported EBITDA* Ratio (x) Q 7 2Q 7 3Q 7 4Q 7 1Q 8 2Q 8 3Q 8 4Q 8 1Q 9 2Q 9 3Q 9 4Q 9 1Q 1 2Q 1 3Q 1 4Q 1 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13F Net Debt ($ billion) - LHS Net Debt / LTM EBITDA Net debt reduced by $3.8bn from capital raise and disposal proceeds offset by working capital investment * 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

38 Contacts Daniel Fairclough Global Head Investor Relations Hetal Patel UK/European Investor Relations Thomas A McCue US Investor Relations thomas.mccue@arcelormittal.com Lisa Fortuna US Investor Relations lisa.fortuna@arcelormittal.com Valérie Mella European and Retail Investor Relations valerie.mella@arcelormittal.com Maureen Baker Fixed Income/Debt Investor Relations maureen.baker@arcelormittal.com