ArcelorMittal at a glance June 2009
The world s number one steel company With around 316,000 employees in 2008 in more than 60 countries and an industrial presence in 20 countries, ArcelorMittal is the only truly global steelmaker, leader in the steel sector. In 2008, ArcelorMittal recorded revenues of $124.9 billion and crude steel production of 103.3 million tonnes. ArcelorMittal values scale, vertical integration and product diversity. Approximately 36% of our steel is produced in the Americas, 49% in Europe and 15% in other countries such as Kazakhstan, South Africa and Ukraine. Underpinning all our operations is a philosophy to produce Safe Sustainable Steel 1
ArcelorMittal 2008 key figures 2007 2008 Sales (US$ billion) EBIDTA (US$ billion) Operating income (US$ billion) Net income (US$ billion) 105.2 124.9 19.4 24.5 14.8 12.2 10.4 9.4 9% 16% 316,000 employees in more than 60 different countries 6% 24% 17% EU15 Rest EU (EU27) Other European countries North America South America Asia Africa Shipments (million tonnes) 109.7 101.7 12% 16% Steel production (million tonnes) 116.4 103.3 An integrated leader of the metals and mining sector 2
Not only leading the steel industry but the metals and mining sector also Crude Steel production in 2008 (MT)* Sales in 2008 (US$ billion) 120 100 103.3 140 120 124.9 80 100 60 80 40 20 35.55 33 33.14 35.44 33.28 60 40 29.3 54.9 54.3 39.2 20 0 ArcelorMittal Nippon Steel JFE Posco Baosteel Hebei Iron & Steel Group 0 ArcelorMittal Alcoa BHP Billiton Rio Tinto VALE More than 3 times larger than our next competitor 3
A unique 3 dimensional strategy Geographical production breakdown in 2008 Shipments breakdown by products in 2008 Upstream and downstream integration in 2008* CIS & Central Asia 9% Africa 6% North America 25% Semifinished products 11% Specialities 30% Dow nstream integration, 39% Iron ore selfsufficiency, 47% Central & East Europe 12% South America 12% Finished products 34% West Europe 36% Value added products 25% Geography Product Value Chain Achieving sustainability and capturing growth through geography, product and value chain *Downstream integration or shipments distributed through Distribution Solutions divided by total shipments to distribution 4
ArcelorMittal superior R&D expertise ArcelorMittal R&D Over 1,400 full time researchers Budget of approximately $300 million Number one R&D in the industry Working on all development axes (Spending by finality): 33% 16% 51% Product & Applications Breaktrough & Exploratory Process Worldwide network of laboratories (currently 15 labs in Europe, North America, and South America) strongly supporting specialties R&D spending by product: Automotive 46% Construction 13% Others 41% R&D Key challenges in accordance with the Group strategy Product: Differentiated product offer Geography: Support the transfer of technology between plants Value chain: Transverse projects optimising the product value along the complete value chain from mining to finished products The technological pillar of ArcelorMittal helping to transform tomorrow 5
ArcelorMittal main markets Automotive Worldwide no.1 supplier for automotive steels with a leading market share of 21%. Worldwide industrial presence via about 40 coating lines in Europe, North America, South America, Africa. Construction The largest market for steel: a 500 million tonnes steel consumption market comprised of diversified products. Emerging markets represent more than 50% of the square meters constructed each year globally. World leader with 34 million tonnes of products delivered in 2008 to the building and construction industries. Packaging New packaging concepts constantly designed to achieve differentiation by steel solution (bottle can, easy open end...). Complementary industrial network in Europe with production plants and service centres near customers' can making facilities. The undisputed leader in automotive steels 6
The Group Management Board (GMB) Lakshmi N. Mittal Chairman and CEO, Responsible for Shared Services (including Legal, IT, Shipping and Energy), Human Resources, International Affairs, Marketing and Commercial Coordination, Internal Assurance, Health and Safety, Mining Aditya Mittal CFO, Responsible for Flat Americas, Mergers and Acquisitions (M&A), Investor Relations, Strategy and Communications Michel Wurth Responsible for Flat Europe, Distribution Solutions, Products Development and R&D, Global Customers Gonzalo Urquijo Responsible for Long Products, China, Stainless, Tubular Products, Corporate Responsibility, ArcelorMittal Foundation, Investment Allocation Committee (IAC) Chairman Sudhir Maheshwari Responsible for M&A, Business Development, Corporate Finance and Tax committee (reporting to CFO) Christophe Cornier Responsible for Asia, Africa, Technology and Projects Davinder Chugh Responsible for Shared Services, IAC Member (reporting to CEO) Appointed by the Board of Directors, the GMB is responsible for strategic direction 7
SAFE 8
Health and Safety Steel frequency rate* Policy, initiatives and actions Health and Safety policy launched in March 2007 Injury tracking and reporting database to monitor injuries, lost days and significant events in place Fatality prevention and process standards, and golden rules introduced Shop Floor auditing procedure rolled-out Annual Health and Safety awareness days held (March 2007, March 2008 and April 2009) Global Health & Safety agreement signed with trade unions (June 2008) Journey to Zero initiative launched (September 2008) Frequency rate has been significantly cut since merger IISI-standard: Fr = Lost Time Injuries per 1.000.000 worked hours 9
Health and Safety (contd.) The Health and Safety Corporate team, along with the Global Health Committee, focuses on 10 actions: Analysis of health status and main illness causes Analysis of hygiene status Definition of Group health programmes contributing to Journey to Zero Definition of an adequate reporting and metrics system, introducing leading indicators and allowing performance measurements Definition of advanced environmental-health and hygiene concepts Definition of advanced disease prevention campaigns Definition of main Group health and hygiene standards and recommendations Definition of a health REX* system Initiation and follow-up of pilot and master plan projects ArcelorMittal Dofasco recognised with the 2008 Safety and Health Excellence Recognition Award * Return on Experience. 10
SUSTAINABLE 11
Corporate Responsibility: How we do what we do Our position in the industry brings unique opportunities and unique responsibilities. Our future success partly depends on the wider world giving us the freedom and flexibility to succeed. We will earn its trust to do so by behaving responsibly. ArcelorMittal will transform tomorrow by: Investing in our people Making each and every person working on our behalf feel valued. Making steel more sustainable Using our expertise in steel to develop cleaner processes and greener products. Enriching our communities Our presence plays an important role in all the communities where we operate. all this is underpinned by transparent governance The Corporate Responsibility strategy is driven through four focus areas 12
Investing in our people HR Leadership In 2008, over 50 proximity meetings were conducted in more than 20 countries JobMarketOnline e-recruitment tool for exempts 6,669 candidates (internal and external) applied in 2008 Talent resourcing Group Engineers and Business Leaders Programmes Induction Programme for newcomers Leadership development Global Executive Development Programme ArcelorMittal University More than 300,000 people have been trained since 2007 Optimas Award ( Global Outlook category) in August 2008 Employee relations and benchmarking Global Health and Safety Agreement signed with trade unions (June 2008) Compensation and benefits Performance management International mobility 390 mobility cases finalised in 2008 resulting in 847 expatriates Making each and every person working on our behalf feel valued 13
Making steel more sustainable We re the world s largest producer of direct reduced iron (DRI) with total production of approximately 8.1 million tonnes in 2008. Our High Strength Steels (HSS) contribute to reduce greenhouse gases by using lighter structures. The ULCOS project seeks to achieve a reduction of more than 50% in steel industry CO 2 emissions. The global recycling rate for steel cans was 68% in 2007 approximately 13 million tonnes of CO 2 emissions were avoided worldwide thanks to recycling*. Using our expertise in steel to develop cleaner processes and greener products * Source: APEAL 14
Enriching our communities Community Engagement Standard published in 2008 Dialogue with stakeholders locally Quarterly reviews in Kazakhstan Socio-economic projects in Prijedor (Bosnia) ArcelorMittal Foundation Driving force for much of community investment Nearly 600 projects in 27 countries Activities in education, Health and Safety and social promotion Emphasis on maximising long-term economic growth, while respecting local needs and encouraging local entrepreneurship Volunteer Day in 2008: mobilised more than 10,000 employees worldwide. Our presence plays an important role in all the communities where we operate 15
Transparent governance ArcelorMittal is committed to visible governance based on an understanding of business reality. The Code of Business Conduct establishes the standards for ethical behaviour to be followed by employees and directors. Whistleblowing notification systems in place for any complaint. Insider Dealing Regulations applied to the worldwide operations. Our Corporate Responsibility strategy is underpinned by transparent governance 16
STEEL 17
Flat Carbon Americas 2008 sales: $27,031 million 2008 shipments: 25.8 million tonnes Sparrows Point Products: slabs, hot-rolled coil, cold-rolled coil, coated steel products and plate. Main customers: distribution and processing, automotive, tubular products, construction, packaging, and appliances. Production facilities located at 8 integrated and mini-mill sites in 4 countries. Operations in Canada, the United States, Mexico and Brazil. Leading producer of advanced high-strength steels 18
Flat Carbon Europe 2008 sales: $38,300 million 2008 shipments: 33.5 million tonnes Products: hot-rolled coil, cold-rolled coil, coated products, tinplate, plate and slab. Main customers: automotive, packaging and general industries. Production facilities located at 13 integrated and mini-mill sites in 8 countries. Complete portfolio of flat steel products serving all customer segments across Europe 19
Long Carbon Americas and Europe 2008 sales: $32,268 million 2008 shipments: 27.1 million tonnes CAPEX for projects done or approved Products: sections, wire rod, rebars, billets, blooms and wire drawing. Production facilities in Long Carbon Americas located at 15 integrated and mini-mill sites in 6 countries, Production facilities in Long Carbon Europe located at 18 integrated and mini-mill sites in 10 countries. 37 long carbon plants in Europe and the Americas producing a wide range of long products 20 Wire drawing facilities are not shown on map
Africa, Asia and CIS (AACIS) 2008 sales: $13,133 million 2008 shipments: 13.3 million tonnes Products: combination of flat and long products, and pipes and tubes. 6 flat and long production facilities in 3 countries. Large low-cost production base and extensive footprint 21
Stainless Steel 2008 sales: $8,341 2008 shipments: 2.0 million tonnes Products: flat and long stainless steel and alloy products (Europe and South America). Main customers: domestic appliances and household equipment, automotive, construction and general industries. Production facilities in the Americas located at one integrated site in one country. Production facilities in Europe located at 4 mini-mill sites in 2 countries. ArcelorMittal is a world leader in stainless steel and nickel alloys 22
Distribution Solutions Market position by region Eastern Europe and CIS Europe No 1 North America No 1 Leading position No 1 Strategic presence No 1 Asia Africa Strategic presence South America No 1 Strategic presence No 1 Strategic partnership Significant presence Steel production Distribution Solutions 2008 sales: $23,126 million 2008 shipments: 19.1 million tonnes Network of more than 450 facilities for more than 200,000 customers. Value-added and customised steel solutions through further steel processing to meet specific customer requirements. Activities: steel processing, technical consultancy, engineering, provision of construction and foundation solutions for infrastructure projects. The world s largest steel distributor and processor 23
Contacts ArcelorMittal 19, avenue de la Liberté L-2930 Luxembourg Tel: +352 4792 1 Berkeley Square House Berkeley Square London W1J 6DA Tel: +44 (0) 20 7629 7988 24