OECD Steel Committee The future of steel: how will we evolve and stay competitive in the long term? December 2012 Ana Escobedo Director of Government Affairs
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 20-F for the year ended December 31, 2011 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
The world s leading steel and mining company ArcelorMittal is the world's number one steel and mining company, with over 260,000 employees in more than 60 countries. ArcelorMittal is the leader in all major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 20 countries exposes the company to all major markets, from emerging to mature. ArcelorMittal values scale, vertical integration and product diversity. Approximately 38% of our steel is produced in the Americas, 46% in Europe and 16% in other countries such as Kazakhstan, South Africa and Ukraine. Underpinning all our operations is a philosophy to produce safe, sustainable steel 2
Strategic Challenges facing the industry 1. Managing Macro-economic Uncertainty Eurozone US Fiscal cliff China hard or soft landing Mid East Geo-Politics 2. Increasing Volatility in the supply chain 150 Scrap HRC 100 50 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Energy cost Labour cost Carbon cost -50 3. Impact of Chinese peak demand -100 Nuclear winter... 4. Supply/ demand Imbalances 41 35 32 1000 800 5. Margin Squeeze or mild spring? -2-4 -20-38 -48 2 1 600 400 200 0 0 100 200 300 400 500 600 700 800 900 1000 3
Health and Safety: our # 1 priority Lost time injury frequency rate (LTIFR) improved to 1.1 in the first quarter 2012 and to 0.8 in 2Q12 Our Journey to Zero programme aims at achieving zero fatalities, accidents and occupational illnesses 2012 Health and Safety Day around the theme Stop, think and act safely Within Mining, Courageous leadership set of values: everyone has the authority, responsibility and accountability to courageously speak up when someone is thought to be at risk Annual health and safety frequency rate* (mining and steel) 3.5 3 2.5 2 1.5 1 0.5 0 3.1 2.5 1.9 1.8 2007 2008 2009 2010 2011 2012 1.4 1.0 Quarterly health and safety frequency rate* (mining and steel) 1.6 1.2 0.8 0.4 0.0 1.5 1.5 1.2 1.1 0.8 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 ArcelorMittal s Health and Safety performance improved again in 2012 * IISI-standard: Fr = Lost Time Injuries per 1.000.000 worked hours; based on own personnel and contractors 4
Core strengths of ArcelorMittal Quality core assets Leader in auto steel Consistent Strategy World-class mining Sustainable Returns Cost improvement Stronger balance sheet ArcelorMittal in a strong position to respond to evolving markets 5
ArcelorMittal global R&D expertise Over 1,300 full time researchers 2011 spending of $300 million Broad, comprehensive portfolio and programmes addressing business needs Expanding worldwide network of laboratories (currently 11 labs in Europe and North America) Budget spending by focus area: R&D effort fully aligned with group strategy: geography, value chain, product differentiation 6
Thank You 7