Transforming tomorrow Bank of America Merrill Lynch Global Metals and Mining Conference May 2010
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, 2009 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 Steel market Results and industrial plan Growth and capital allocation 2
Steel market 3
Improvement in real demand and restocking continue in US and EU Apparent steel demand in the US (000 t) 12,000 Steel service center Inventory levels in Europe and US (absolute level base 100) 10,000 8,000 6,000 4,000 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 130 120 110 100 90 80 70 Apparent steel demand in the European Union (000 t) 60 20,000 50 40 15,000 10,000 30 Dec- 04 Jun- 05 Dec- 05 Jun- 06 Dec- 06 Jun- 07 Dec- 07 Jun- 08 Dec- 08 Jun- 09 Dec- 09 5,000 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 US Flat products inventory (base 100) EU Flat products inventory (base 100) US and Europe steel demand is not expected to normalise in 2010 Sources: EASSC, MSCI, WSA 4
Emerging markets to normalise Steel consumption per capita pre-crisis (kg) Emerging market steel demand (Mt) 550 500 The credit crisis 450 400 The Asian crisis 319 462 350 300 250 44 India 95 Emerging World China Developed World* 200 150 1994 1996 1998 2000 2002 2004 2006 2008 2010e 2012e Steel demand in India, Middle-East and Brazil is expanding again * US, Canada, EU-15 and Japan Sources: WSA ArcelorMittal 5
China demand growth remains solid Steel consumption per capita in 2009e (kg) Chinese steel apparent demand (mt) 700 600 Western China (210 kg) Development and growth potential Central China (285 kg) Coastal China (615kg) Population migration 500 400 300 200 100 0 Steel capacity utilization in China 100% 95% 90% 85% 80% 75% 70% 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 P 2012 P Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Chinese steel industry running at full capacity Sources: WSA, SBB and ArcelorMittal estimates 6
Chinese iron ore mining production Chinese iron ore production (mt Fe 63% equivalent) China iron ore imports (mt) 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Despite the crisis, iron ore imports into China increased by 41% in 2009 creating significant market tightness Sources: AME, WSA, ArcelorMittal 7
Price-cost squeeze Iron ore spot price and steel price in China Coke price and steel price in China 250 900 1000 900 200 800 800 800 150 700 600 700 600 600 100 500 400 500 50 400 200 400 0 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 300 0 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 300 Indian Iron Ore 63% Fe dry - China import CFR (USD/t) - LHS HRC - China domestic Shanghai (USD/t) - RHS Coke China export FOB (USD/t) - LHS HRC - China domestic Shanghai (USD/t) - RHS High correlation between raw material costs and steel prices Source: SBB 8
Results and industrial plan 9
Steel production to generally increase in line with demand ArcelorMittal quarterly crude steel production (million tonnes) 35 30 25 20 15 Estimated crude steel production Realised crude steel production 10 5 0 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 Capacity utilization expected to gradually increase to approximately 80% in Q2 10
Iron ore production expanding Iron ore production* (Mt) PCI & Coal production* (Mt) 12 3 10 8 2 6 4 1 2 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Iron ore production from own mines expected to increase by more than 10mt in 2010 * Excluding strategic agreement and long-term supply contracts 11
Continuing progress in sustainable SG&A and fixed cost reduction Management gains progress (USD billion annualized) Fixed costs annualized (in billion USD) 3.5 30 3.0 2.5 2.0 1.5 Target by end of 2010 Target by end of 2009 25 USD2.9bn of sustainable management gains USD5.0bn of temporary fixed cost saving* 1.0 20 0.5 0.0 Captured at 31/12/08 Captured at 31/03/09 Captured at 30/06/09 Captured at 30/09/09 Captured at 31/12/09 Captured at 31/03/10 15 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 On track to achieve USD 5 billion of sustainable management gains by end of 2012 *USD 3.8 billion on constant US Dollar 12
Growth and capital allocation 13
Growth projects in emerging markets and mining cautiously reinitiated ArcelorMittal sales revenue breakdown in 2009 ArcelorMittal CAPEX (in billion USD) Export to emerging 16% EU-15 38% 6 5 4 3 Emerging domestic 23% US & Canada 23% 2 1 0 2005 2006 2007 2008 2009 2010e Maintenance capex Grow th capex CAPEX budget of USD 4.0 billion for 2010; USD 0.5 billion spent in Q1 14
Targeting growth in emerging markets ArcelorMittal key emerging markets currently targeted for growth ArcelorMittal key CAPEX projects Flat Carbon America (Brazil) Vega do Sul increase HDG production by 350,000 t (H1 2010) Long Carbon (Brazil) Monlevade expansion by 1.15mt (2012) Saudi Arabia JV 600,000t of seamless tubes (2012) Iraq JV 250,000t of rebars (End 2011) China JV Automotive products and Electrical steel (2012) Indian Greenfield projects Main growth projects located in South America, Middle-East and Asia 15
An ambitious mining growth plan ArcelorMittal internal iron ore production (mt) Key mining assets and projects 50 >10mt 45 40 35 30 2006 2007 2008 2009 2010E Iron ore Coal Targeting 100mt of internal iron ore production by 2015 from greenfield projects and brownfield expansion 16
Q&A 17