2Q 213 Results Lakshmi N Mittal, Chairman and Chief Executive Officer Aditya Mittal, Chief Financial Officer 1 August 213
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
Agenda Results overview and recent developments Market outlook Results analysis Outlook and guidance 2
Continued improvement in safety Quarterly Health & Safety frequency rate* for mining & steel 213 Target 1. 3.1 27 2.5 28 1.9 29 1.8 21 1.4 1. 211 212.9 1Q 213.9 2Q 213 Health and safety performance maintained with LTIF rate of Health.9 in and 2Q 13 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 Improvements Safety record in will performance continue in Flat Carbon Americas partially offset by deterioration in the Mining division. All other Whilst segment the performance LTIF target of remained 1.x is maintained relatively constant for 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 ArcelorMittal hosted its 7th annual Health and Safety Day that mobilised around 231, employees and contractors. ArcelorMittal unveiled its innovative ultra lightweight car door solutions. Using steels and technology currently available, a 27% weight and cost saving can be achieved without compromising safety and structural requirements. Going forward even greater weight savings of up to 34% compared to existing steel car door solutions are expected. ArcelorMittal joined the board of the Extractive Industries Transparency Initiatives as a representative of the mining constituency. This multi-stakeholder coalition aims to establish a global standard for transparency in the extractive industries, and better governance of natural resources. 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
2Q 213 highlights EBITDA of $1.7bn in 2Q 13, representing a 19% underlying improvement vs 1Q 13* Steel shipments of 21.3Mt, an increase of 1.7% vs. 1Q 13 Own iron ore production of 15.Mt; 8.2Mt shipped at market price, stable compared to 2Q 12 Net debt declined from $18.bn at end of 1Q 13 to $16.2bn at end of 2Q 13 $.6bn annualized management gains achieved during 1H 13, in line with plan to achieve $3bn of improvement by the end of 215 Completion of AMMC capacity expansion from 16Mt to 24Mt; production ramp-up during 2H 13 (on track for ~2% growth in marketable iron ore shipments in 213) (USDm) unless otherwise shown 2Q 213 1Q 213 2Q 212 6M 213 6M 212 Iron ore shipments at market price (Mt) 8.2 7.3 8.2 15.5 15. Steel Shipments (Mt) 21.3 2.9 21.7 42.3 43.9 Sales 2,197 19,752 22,478 39,949 45,181 EBITDA 1,7 1,565 2,559 3,265 4,677 Net income / (loss) (78) (345) 1,16 (1,125) 1,18 Sequential improvement in underlying EBITDA and significant net debt reduction * EBITDA in 1Q 213 was positively impacted by a $47 million fair valuation gain relating to the acquisition of an additional ownership interest in DJ Galvanizing in Canada and includes $92 million DDH income. 4
Deleveraging progress Net debt progression $billion 25-8.7 2 15 1 24.9 21.8 18. 16.2 15. 5 3Q 11 4Q 12 1Q 13 2Q 13 Medium term target Net debt/ltm EBITDA* 2.3x 2.8x 2.5x 2.6x Significant net debt reduction achieved medium term target of $15bn * Ratio of Net debt/ltm EBITDA is based on last twelve months reported EBITDA. Figures based on recast EBITDA as per new accounting standards adopted. 5
4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 Asset Optimization delivering Asset Optimization savings achieved ($ million) 1.2 1. 8 6 4 2 Essential components have been announced: 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 EAF & continuous caster at Schifflange Further optimization in Poland and Spain Residual Costs Run Rate-Savings 4Q 212 Closure of 2 BF, sinter plant, steel shop and continuous casters in Liege, Belgium decided Long term idling of liquid phase at the Florange site Including residual costs, the targeted run-rate savings of $1bn has been achieved Residual costs should disappear from the system by 214 Savings apparent in improved reported results 1Q 213 Announced intention to permanently close the coke plant and six finishing lines in Liege, Belgium Mothballing Florange FCE EBITDA showing clear benefits from Asset Optimization 6
Cost improvement underway New $3bn management gains program ($ billion) Annualized savings Gap Analysis for Cost Savings per Main Drivers Savings targets 1H 13 achieved 3. Others 28% 29% Yield 2. 1..4 2. 3. Energy 21% 22% Productivity.6 Gap Analysis for Cost Savings by Process 213F 214F Bottom up plan across the group 215F 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 Others 11% Sinter & BF 1% 34% 2% 25% Steel shop Gap analysis completed in 212 defined the priorities for 213-215 plan 7
Capex and growth plans STEEL Most steel growth capex remains temporarily suspended Monlevade expansion project in Brazil restarted in 2 phases: Phase 1 focuses on downstream facilities: a new wire rod mill in Monlevade (additional capacity of 15 ktpy of coils) with capex estimate of $14m; Juiz de Fora rebar capacity increase from 5 to 4 ktpy and meltshop capacity increase by 2 ktpy with capex estimate of $4m. MINING AMMC: Expansion from 16mtpa iron ore to 24mtpa by 213 completed 1H 13. Capex of $1.6bn AMMC: Further expansion to 3mtpa iron ore under study Liberia: Phase 2 project underway for 15mtpa premium sinter feed to replace 4Mtpa DSO by 215. Baffinland: Early Revenue Phase (ERP) underway: 3.5mtpa production capacity by 215 Phase 2 will focus on the upstream facilities in Monlevade (sinter plant, blast furnace and melt shop additional crude steel capacity of 1.2mtpa). Restart decision to be taken in future Capex focus remains on iron ore growth plan Upgrade railway line linking mine to port in Liberia 8
Expansion Contraction Demand indicators have shown marginal positive improvement Jan-6 May-6 Sep-6 Jan-7 May-7 Sep-7 Jan-8 May-8 Sep-8 Jan-9 May-9 Sep-9 Jan-1 May-1 Sep-1 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 ArcelorMittal weighted global manufacturing PMI* Global apparent steel consumption (ASC) growth forecast in 213** (v 212) 6 55 US +% to +1.% 5 EU27-1.5% to -2.5% 45 China +4.5% to +5.5% 4 35 Brazil CIS Global +3% to +4% +2.5% to +3.5% +3.% Global ASC expected to grow by ~3% in 213 Source: * Markit. Purchasing managers indices for over 4 countries weighted by share of ArcelorMittal finished steel deliveries. ** ArcelorMittal estimates 9
Financial results 1
EBITDA bridge from 1Q 13 to 2Q 13 ($million) Steel impact Mining impact 248 4 (42) (23) 1,7 119 2,582 1,565 (47) 18 (92) 1,426 Q1'11 EBITDA Volume & Mix Sellin 1Q 13 EBITDA DJ Galvanizing gain DDH income* Comparable 1Q 13 EBITDA Volume & Mix - Steel Price / Cost - Steel Volume & Mix - Mining Price / Cost - Mining Others** 2Q 13 EBITDA Underlying EBITDA improvement of 19% Q-o-Q * DDH income refers to Dynamic Delta Hedge; ** Others primarily represents forex 11
1Q 213 2Q 213 EBITDA to net results Depreciation: (1,136) ($ million) Interest: (471) Impairment (39) Restructuring (173) Forex and other: (53) Current tax: (149) Deferred tax: 5 Non-controlling: (8) Weighted Avg No of shares: 1,788 EPS = $ (.44)/share 1,7 (1,348) 352 (24) (1,1) (673) (17) (78) ($ million) EBITDA Depreciation impairment and restructuring charges Operating Income Depreciation: (1,161) Income from Equity Finance Cost Interest: (478) Forex and other: (155) Pre-tax loss Current tax: (61) Deferred tax: (36) Taxes and noncontrolling Interest Net Ioss Weighted Avg No of shares: 1,75 EPS = $ (.21)/share Non-controlling: (1) 1,565 (1,161) 44 (18) (633) (247) (98) (345) 2Q 13 net loss of $.8 billion 12
EBITDA to free cash flow 2Q 213 free cashflow waterfall ($ million) 613 1,272 Change in working capital Net financial cost, tax expense, and others* 2,359 79 Capex 1,7 1,65 EBITDA Cashflow from operations Free cashflow Significant working capital release main driver of $1.7bn positive free cashflow * Includes pension expense, non cash items etc. 13
Net debt bridge 2Q 213 net debt analysis ($ million) -1,837 1,65 18,2 29 13 16,165 Net debt at 1Q 13 Free cashflow M&A* Forex & others Net debt at 2Q 13 Significant net debt reduction from FCF generation and M&A proceeds 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 refers to $29 million from second tranche of 15% stake disposal in AMMC 14
Outlook and guidance framework In line with our guidance framework, underlying profitability is still expected to improve in 213, driven by three factors: a) a 1-2% increase in steel shipments; b) an approximate 2% increase in marketable iron ore shipments; and c) the realized benefits from Asset Optimization and Management Gains initiatives Nevertheless, due largely to lower than forecast apparent demand and lower than anticipated raw material prices, the Company now expects to report 213 EBITDA greater than $6.5 billion Due to an expected investment in working capital and the payment of the annual dividend, net debt is expected to increase in 2H 213 to approximately $17 billion; the $15 billion medium term net debt target is unchanged 213 capital expenditures are now expected to be approximately $3.7 billion The Company expects to report FY 213 EBITDA greater than $6.5 billion 15
Appendix
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 May-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 May-13 2Q 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) 6 55 5 45 4 35 Developing ex China China Developed 17 15 13 11 9 3 25 2 7 5 EU27 USA 15 3 Global ASC +3.% in 2Q 13 vs. 1Q 13 Global ASC +3.4% in 2Q 13 vs. 2Q 12 China ASC +2.3% in 2Q 13 vs. 1Q 13 China ASC +8.2% in 2Q 13 vs. 2Q 12 US ASC +3.1% in 2Q 13 vs. 1Q 13 US ASC -3.9% in 2Q 13 vs. 2Q 12 EU ASC +.3% in 2Q 13 vs. 1Q 13 EU ASC -4.1% in 2Q 13 vs. 2Q 12 Europe and US declined YoY in 2Q; developed market growth expected in 2H 13 * ArcelorMittal estimates ** AISI, Eurofer and ArcelorMittal estimates 17
Jan-6 May-6 Sep-6 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 May-13 Contraction Expansion Global indicators have improved Global leading indicators have rebounded expect a further mild pick-up in H2 13 US manufacturing still up y-o-y but stagnated during Q2 13. June purchasing managers index (PMI) >5 and output to be underpinned by robust automotive sales and rising durable goods orders In Europe, manufacturing output is down y-o-y but has stopped declining in Q2 13 Eurozone PMI remains below 5 for two years but highest since Feb 12. Czech Republic and UK PMI >5 Chinese industrial output growth has slowed (9.1% Q2 13 from 1% in 212). PMI below 5, while auto remains strong 6 55 5 45 4 35 ArcelorMittal weighted global manufacturing PMI* Global indicators signal improved 3Q 13 growth in developed markets, partially offset by weakening Chinese growth Source: *Markit. ArcelorMittal estimates 18
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 Apr-13 Contraction Expansion 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 Jul-13 US construction improving; Europe declining US residential and non-residential construction indicators (SAAR) $bn* 75 7 65 6 55 5 45 4 35 3 25 2 Residential Non-residential Eurozone and US construction indicators** 65 6 55 5 45 4 35 3 Eurozone construction PMI USA Architectural Billings Index Developed construction still at low levels Pickup in USA strengthening US residential construction continues to grow strongly off a low base (up 25% y-o-y Jan- May 13). Home sales improve and permits rise to their highest level since H1 8 Public non-residential output declining, private slowly improving; Architectural Billings index (ABI) remains above 5 suggesting pickup into 214 In Europe, weak demand continues to impact construction, but decline slowing Construction PMI around 45 output continues to contract, but at a reduced rate German construction output saw fastest rise since Mar 12, supported by strong labour market and increased purchasing activity Construction markets in South continue to be weak, with double digit declines in 1H 13 continuing in Greece, Italy and Portugal. However, rate of contraction has slowed in most Eurozone countries US residential construction improving, rate of decline in Europe slowing * Source: US Census Bureau ** Source: Markit and The American Institute of Architects 19
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 Apr-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 May-13 Chinese industrial growth slowed in 2Q 13 China infrastructure investment 3mma* (Y-o-Y) 75% 6% 45% 3% 15% % -15% Crude steel finished production and inventory (mmt) 1 9 8 7 6 5 4 3 2 1 Steel inventory at warehouses (RHS) Finished steel production (LHS) Steel inventory at mills (RHS) 21 18 15 12 9 6 3 Recent data shows industrial output slowed in the 2Q 13 to 9.1% year on year (4Q 12-1%) impacted by weaker exports Infrastructure investment growth continues to be robust but we expect growth to slow through 2H 13 and into 214 Newly started construction has begun to rebound. 2Q 13 starts are up 8.5% y-o-y as strong residential sales have cut developers inventory and improved cash flow Flat products demand is robust, despite the weakness of Shipping, as both automotive and domestic appliances grow strongly Despite high 1H 13 (785mt annualized) steel production, steel inventory particularly longs, has fallen as is seasonal, down y-o-y in June Mill inventories are still relatively high but have fallen back, supporting a smaller decline in steel production during 2H 13 than expected Underlying demand robust in China, yet production to decline in 2H 13 * Mma refer to months moving average 2
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 Apr-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 May-13 Jan-7 Jun-7 Nov-7 Apr-8 Sep-8 Feb-9 Jul-9 Dec-9 May-1 Oct-1 Mar-11 Aug-11 Jan-12 Jun-12 Nov-12 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 Apr-13 Inventory levels during 2Q 13 24 22 2 18 16 14 12 1 Europe service centre inventories ( MT)* EU (EASSC) Months Supply 3.6 3.4 3.2 3 2.8 2.6 2.4 2.2 2 1.8 1.6 14, 12, 1, 8, 6, 4, 2, US service centre total steel Inventories ( MT) USA (MSCI) Months Supply 3.6 3.4 3.2 3. 2.8 2.6 2.4 2.2 2. 1,4 1,3 1,2 1,1 1, 9 8 7 6 5 4 Brazil service centre inventories ( MT) Flat stocks at service centres Months of supply (RHS) 5. 4.5 4. 3.5 3. 2.5 2. 1.5 China service centre inventories (Mt/mth) with ASC% 22 Flat and Long 5% 2 % of ASC (RHS) 45% 18 4% 16 35% 14 3% 12 25% 1 2% 8 15% 6 1% 4 5% 2 % Inventory drawdown in US and China during 2Q 13 * Europe inventory updated data not available. 21
Global apparent steel consumption China 7 +55% +2% +5% EU27 2-3% 6 5 4 3 2 1 18 16 14 12 1 8 6-9% -2.5% 4 27 28 29 21 211 212 213F 27 28 29 21 211 212 213F NAFTA 16 14 12 1 8 6 4 27 28 29-8% 21 211 +7% +1% 212 213F Rest of World 55 5 45 4 35 3 25 2 15 1 5 27 28 29 +9% 21 211 +4% +2% 212 213F Global ASC growth of +1.7% 212; estimated 213 ASC growth of +3% ArcelorMittal estimates; 213 figures shown mid range expectations 22
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 have weakened Spot iron ore, coking coal and scrap price (index IH 28=1)* Regional steel price HRC ($/t) 13 12 11 1 9 Spot Iron Ore Coaking Coal Scrap 13 12 11 1 China domestic Shanghai (Inc 17% VAT) N.America FOB Midwest N.Europe domestic ex-works 8 9 7 8 6 7 5 6 4 5 3 4 Raw material prices have started to rebound from end 2Q 13 lows 23
CAPACITY Iron ore growing; plans on track AMMC Spirals replacement project completed in 1Q 13 Capacity expansion from 16Mt to 24Mt: In June 213 first concentrate from new Line 7 produced Ramp up underway Capex of $1.6bn Liberia Phase 1 achieved new production record in 2Q 13 at 1.1Mt Phase 2 project underway for 15Mtpa premium sinter feed to replace 4Mtpa DSO by 215 Product specification changed to sinter feed; engineering scope change required Major equipment procurement complete Civil works at the port are advancing and will be completed this year Baffinland Early Revenue Phase underway 3.5Mtpa of DSO trucked to Milne Inlet for export during openwater season by 215 $7m* project capex in 5:5 JV Iron ore growth target on track 84MT capacity by 215 * Includes consideration from JV partner (Nunavut Iron Ore) for additional equity stake increase from 3% to 5%. 24
Segment highlights Segmental EBITDA (US$mn) 7 6 5 4 3 2 1-1 2Q 12 3Q 12 FCA FCE Long 4Q 12 AACIS 1Q 13 AMDS 2Q 13 Mining FCA: EBITDA -48% y-o-y; $54 EBITDA/t ASP +$12/t compared to 1Q 13 Shipments -5.7% lower than 2Q 12 FCE: EBITDA -11.% y-o-y; $48 EBITDA/t ASP -$1/t compared to 1Q 13 Shipments +4.3% higher than 2Q 12 Long: EBITDA -3.3% y-o-y; $96 EBITDA/t ASP -1$/t compared to 1Q 13 Shipments -1.1% lower than 2Q 12 Segmental EBITDA/tonne (US$/t) AACIS: EBITDA -1.6% y-o-y; $39 EBITDA/t 1 ASP +$3/t compared to 1Q 13 8 Shipments -7.8% lower than 2Q 12 6 AMDS: 2Q 13 EBITDA $29m 4 ASP +$21/t compared to 1Q 13 2 Shipments -11.4% lower than 2Q 12 Mining: EBITDA -21.2% y-o-y -2 Sales +12.7% higher than 1Q 13 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 Own iron ore production +3.8% higher than 2Q 12 FCA FCE Long AACIS AMDS Own coal production -4.5% lower than 2Q 12 Sequential improvement in underlying EBITDA * Segmental figures shown above include one time adjustments 25
Flat Carbon Americas (FCA) EBITDA* (US$mn, LHS) and ASP (US$/t, RHS) 8 7 6 5 4 3 2 1 881 563 2Q12 85 326 3Q12 797 294 4Q12 819 443 1Q13 Flat Carbon Americas steel shipments ( t) 5,8 5,7 5,6 5,5 5,4 5,735 2Q12 5,351 3Q12 5,533 4Q12 5,559 1Q13 +1% -34% -3% 831 293 2Q13 5,47 2Q13 1, 9 8 7 6 5 4 3 Flat Carbon Americas crude steel production declined by 9.8% to 5.6Mt in 2Q 13 Vs 6.2Mt 1Q 13, driven primarily by a significant drop in Flat USA following labor issues at Burns Harbor and operational incidents at Indiana Harbor East and West, for which reductions in inventory and supplies from other FCA units partially mitigated the market impact. Steel shipments in 2Q 13 were 5.4 Mt, 2.7% lower than in 1Q 13, primarily driven by lower shipment volumes in Flat USA driven by incidents noted above, offset in part by improvements in Canada and South America. Sales were $4.8bn in 2Q 13, a decrease of 1.5% Vs $4.9bn in 1Q 13. The decrease in sales was due primarily to lower shipments in Flat USA, offset in part by higher steel selling prices in South America. EBITDA in 2Q 13 decreased 33.9% to $293m Vs $443m in 1Q 13. EBITDA in 1Q 13 was positively impacted by a $47m fair valuation gain relating to the acquisition of an additional ownership interest in DJ Galvanizing in Canada. Excluding this one-time gain, EBITDA in 2Q 13 decreased 26% to $293m Vs $396m in 1Q 13, impacted by the loss of volumes in Flat USA partially offset by improvements in South America. FCA profitability declined in 2Q 13 Vs 1Q 13 due to labor and operational issues * 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 $47 million fair valuation gain relating to the acquisition of an additional ownership interest DJ Galvanizing in Canada. The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 26
Flat Carbon Europe (FCE) EBITDA* (US$mn, LHS) and ASP (US$/t, RHS) 8 7 6 5 884 856 847 831 +14% 83 1, 95 9 85 Flat Carbon Europe crude steel production increased by 2.8% to 7.5Mt in 2Q 13 Vs 7.3 Mt in 1Q 13. Steel shipments in 2Q 13 were 7.1Mt, an increase of 2.5% Vs 6.9Mt in 1Q 13 due to seasonal factors. 4 3 2 1 383 38 3 191 2Q12 3Q12 4Q12 1Q13 Flat Carbon Europe steel shipments ( t) 7,2 7, +3% 341 2Q13 8 75 7 65 6 Sales increased to $6.9bn in 2Q 13 Vs $6.8bn in 1Q 13. Sales benefitted primarily from higher steel shipment volumes as average steel selling prices (ASP) were essentially stable in USD. EBITDA in 1Q 13 included $92m of DDH income recognized during the quarter. Excluding this gain, EBITDA in 2Q 13 increased 63.9% to $341m as compared to $28m in 1Q 13. Steel margins were positively impacted in 2Q 13 by higher volumes and a positive price-cost effect reflecting higher management gains and benefits from asset optimization. 6,8 6,6 6,4 6,2 6, 6,771 5,837 5,957 6,89 7,65 Operating results for 2Q 13 have been negatively impacted by restructuring costs of $157m primarily associated with the long term idling of the liquid phase at the Florange site in France and impairment charges of $24m primarily relating to the closure of the organic coating and tin plate lines in Florange. 2Q12 3Q12 4Q12 1Q13 2Q13 FCE profitability improved 2Q 13 Vs 1Q 13 * 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. EBITDA in 1Q 13 included $92m of DDH income recognized during the quarter. The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 27
Long Carbon Americas & Europe (LCAE) EBITDA (US$mn, LHS); ASP (US$/t, RHS) 8 6 885 861 857 858-1% +33% 848 1, 8 Long Carbon Americas and Europe crude steel production was 5.7Mt in 2Q 13, essentially flat as compared to 1Q 13. 4 2 Long Carbon steel shipments ( t) 5,9 5,8 5,7 575 34 422 2Q12 3Q12 4Q12 556 419 1Q13 2Q13 +7% 6 4 2 Steel shipments in 2Q 13 were 5.8Mt an increase of 7.% as compared to 5.4Mt in 1Q 13, primarily due to higher volumes in Europe (seasonal impact), South America, Mexico and Tubular products. Sales increased to $5.4bn in 2Q 13 Vs $5.1bn in 1Q 13. Sales were higher due to improved volumes, partially offset by lower ASP where higher ASP in the Tubular and Americas business were outweighed by reduced prices in the European business. EBITDA in 2Q 13 was $556m, an improvement of 32.7% as compared to $419m in 1Q 13, primarily driven by higher volumes and improved profitability in South America and Tubular products. 5,6 5,5 5,4 5,839 5,58 5,543 5,394 5,772 2Q12 3Q12 4Q12 1Q13 2Q13 Long Carbon profitability improved 2Q 13 Vs 1Q 13 The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 28
Asia, Africa and CIS (AACIS) EBITDA (US$mn, LHS) and ASP (US$/t, RHS) 25 2 15 1 5 2Q12 3Q12 4Q12 AACIS steel shipments ( t) 3,4 687 658 611 222 122 72 62 19 1Q13 623 12 2Q13 8 7 6 5 4 3 2 1 AACIS segment crude steel production was 3.7Mt in 2Q 13, an increase of 13.4% Vs 1Q 13. Production increased during 2Q 13 primarily as a result of the recovery in South Africa following the fire at Vanderbijlpark ( VDP ) that negatively impacted production in 1Q 13. Steel shipments in 2Q 13 amounted to 3.1Mt, a decrease of 1.4% Vs 3.1Mt in 1Q 13 with lower volumes in Ukraine and South Africa. Sales were flat at $2.1bn in 2Q 13 as compared to 1Q 13 as the CIS market in particular remained weak. EBITDA in 2Q 13 was $12m Vs $19m in 1Q 13, when EBITDA was negatively impacted by $67m due to the fire disruption at VDP. 3,3 3,2 3,1 3, 3,321 3,178 2,978-1% 3,14 3,62 2Q12 3Q12 4Q12 1Q13 2Q13 AACIS profitability improved 2Q 13 Vs 1Q 13 * EBITDA in 4Q 12 includes the positive impact from the Paul Wurth asset divestment (a gain of $242 million). The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 29
Distribution Solutions (AMDS) EBITDA (US$mn, LHS) and ASP (US$/t, RHS) 4 35 3 25 2 15 1 5-5 2Q12 3Q12 4Q12 1Q13 2Q13 Distribution Solutions steel shipments ( t) 4,6 4,5 4,4 92 869 834 851 +2% 872 385 +93% 11 15 29-24 1, 9 8 7 6 5 4 Shipments in the Distribution Solutions segment in 2Q 13 were 4.Mt, a decrease of 1.4% Vs 4.1Mt in 1Q 13, primarily due to the reduction pf export business in our CIS operations. Sales in the Distribution Solutions segment in 2Q 13 were $3.6bn, an increase of 1.2% Vs 1Q 13, due primarily to higher ASP (+2.5%) offset in part by lower steel shipment volumes. EBITDA in 2Q 13 was $29m as compared to $15m in 1Q 13, with the improvement primarily due to a better geographical sales mix following a seasonal improvement in Europe. EBITDA for 2Q 12 of $385m includes a gain of $339m from the Skyline divestment. 4,3 4,2 4,1 4,523 4,463 4,118 4,63-1% 4,8 2Q12 3Q12 4Q12 1Q13 2Q13 AMDS profitability improved 2Q 13 Vs 1Q 13 * EBITDA in 2Q 12 includes $339m gain from Skyline divestment. The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 3
Mining 55 EBITDA ($ million) Own iron ore production (not including supplies under strategic long-term contracts) in 2Q 13 was 15.Mt, 14.5% higher than 1Q 13, primarily due to higher production at our Canadian operations and Liberia. 5 45 4 35 548 396 2Q12 3Q12 Iron ore (million tonnes) 327 4Q12 433 1Q13 432 2Q13 Shipments at market price increased 12.3% in 2Q 13 vs 1Q 13 primarily due to higher shipments in Canada which was impacted by production and freezing lake constraints during first quarter. Shipments at market price in 2Q 13 remained flat at 8.2Mt vs 2Q 12. Own coal production (not including supplies under strategic long-term contracts) in 2Q 13 was 2.Mt, representing a decrease of 2.9% vs 1Q 13. EBITDA for 2Q 13 was $432m, essentially flat as compared to 1Q 13. EBITDA during the quarter was positively impacted by higher volumes from our Canadian operations and the effect of lagged pricing on a portion of our shipments from Canada and Mexico, offset by reduced seaborne iron ore prices. EBITDA attributable to the Mining segment was $548m in 2Q 12. Coal (million tonnes) 16 14 12 1 8 6 4 2 8.2 7. 7.1 6.9 6.6 6.8 7.3 4.8 8.2 6.5 15 1 5 2.5 2. 1.5 1..5. 1.4.7 1.2.8 1.3.8 1.3.7 1.1.7 2.5 2. 1.5 1..5. 2Q12 3Q12 Own iron ore prod 4Q12 1Q13 Shipped at market price 2Q13 Shipped at cost plus 2Q12 Own coal prod 3Q12 4Q12 1Q13 Shipped at market price 2Q13 Shipped at cost plus EBITDA for 2Q 13 was flat as compared to 1Q 13 Definitions: Market priced tonnes represent amounts of iron ore or other raw materials from ArcelorMittal mines that could be sold to third parties on the open market. Market priced tonnes that are not sold to third parties are transferred from the Mining segment to the Company s steel producing segments at the prevailing market price. Shipments of raw materials that do not constitute market price tonnes are transferred internally on a cost-plus basis. Own iron ore production and own coal production excludes supplies under strategic long-term contracts). The 212 information has been adjusted retrospectively for the mandatory adoption of new accounting standards 31
Balance sheet structurally improved Net debt ($ billion) Average maturity (years) 32.5 6.4-5% 16.2 2.6 3Q 28 2Q 213 3Q 28 2Q 213 Liquidity ($ billion) Bank debt as component of total debt* (%) 16.9 84% 12. 1% 3Q 28 2Q 213 3Q 28 2Q 213 Balance sheet fundamentals improved * ArcelorMittal estimates 32
4Q 1 3Q 1 2Q 1 1Q 1 4Q 9 3Q 9 2Q 9 1Q 9 4Q 8 3Q 8 2Q 8 1Q 8 4Q 7 3Q 7 2Q 7 1Q 7 1Q 12 4Q 11 3Q 11 2Q 11 1Q 11 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 Working capital is fuel for our business OWCR and rotation days* ($ billion and days) 28 24 Working capital ($ billion) - LHS Rotation days - RHS 12 Current working capital at low levels 2 9 16 12 55 6 55 days is record low 8 4 3 Expectation that 3Q 13 levels to increase due to seasonal factors We will invest in working capital as required Higher sales volumes requires more working capital (but same days) Days can be impacted by price 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. 33
Liquidity and debt maturity profile Liquidity at June 3, 213 ($ billion) Debt maturities ($ billion) 16.9 12 1 1.1 Unused credit lines 1. 8 6 Cash 6.9 Liquidity at 3/6/13 1.4.1.8.5 Debt due in 213 Short term & others Commercial paper Bonds 4 2 1.4 213 3.5 2.7 214 215 Commercial Paper Other 2.5 2.9 216 217 Convertibles Bonds >217 Liquidity lines: $4bn syndicated credit facility matures 6/5/15 $6bn syndicated credit facility matures 18/3/16 Debt maturity: Continued strong liquidity Average debt maturity 6.4 years Ratings S&P BB+, negative outlook Moody s Ba1, negative outlook Fitch BB+, stable outlook Continued strong liquidity position and average debt maturity of 6.4 years 34
1Q 7 2Q 7 3Q 7 4Q 7 1Q 8 2Q 8 3Q 8 4Q 8 1Q 9 2Q 9 3Q 9 4Q 9 1Q 1 2Q 1 3Q 1 4Q 1 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 Net debt Net Debt ($ billion) & Net Debt/LTM reported EBITDA* Ratio (x) 35 4, 3 25 2 15 1 5 2,6 3, 2, 1,, Net Debt ($ billion) - LHS Net Debt / LTM EBITDA Net debt reduced by $1.8bn to $16.2bn due to improved cashflow, working capital release and disposal proceeds * 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 1.1.13 35
Contacts Daniel Fairclough Global Head Investor Relations daniel.fairclough@arcelormittal.com +44 27 543 115 Hetal Patel UK/European Investor Relations hetal.patel@arcelormittal.com +44 27 543 1128 Thomas A McCue US Investor Relations thomas.mccue@arcelormittal.com +312-899-3927 Lisa Fortuna US Investor Relations lisa.fortuna@arcelormittal.com +312-899-3985 Valérie Mella European and Retail Investor Relations valerie.mella@arcelormittal.com +44 27 543 1156 Maureen Baker Fixed Income/Debt Investor Relations maureen.baker@arcelormittal.com +33 1 71 92 1 26 36