Investor VisitGhent, 3-4 July 2017
ArcelorMittal Gent – a center of steel excellenceMatthieu Jehl, CEO ArcelorMittal Belgium
Investor VisitGhent, 3-4 July 2017
ArcelorMittalPresence in Belgium
Fleurus
Geel
Genk
Liège
Gent
Charleroi
Shipments 6.6 million tons
Turnover 4.0 billion Euro
Internal staff 5,800 employees
Subcontractors 1,300 at work on site/daily
Investments
144 million Euro
Main investment projects:• Hot strip mill (Ghent)
Walking beam furnace & 2 newfinishing stands
• Upgrade continuous annealing line (Liège)
• Jet Vapor Deposition (Liège)
ArcelorMittal BelgiumKey figures (2016)
Flat products
R&D
Strategic R&D partner
Distribution solutions
Malonne
ArcelorMittal BelgiumExceptional strengths in Europe
• Health & Safety as priority no. 1 in our journey to “zero”
• Customer reference:− Product offer, product development,
quality & service• Unique upstream and downstream
integration in close geographical proximity• Unique & broad product range (uncoated,
metallic coated, Organic Coated)− More than 50% of our shipments are
coated products• Spearhead the development of new ultra-
high strength steel products
18 17 16
1,8 0,9 0,8 1,0 0,302468
101214161820
2013 2014 2015 2016 2017(Q1)
Belgian industry(includes all types of industry)
ArcelorMittal Belgium(own workforce + subcontractors)
Safety frequency rate (LTIFR)
2
ArcelorMittal Belgium:Production facilities (2016)
Coking plant (Ghent) 1.2Mt
Sinter plants (Ghent) 5.7Mt
Blast furnaces (Ghent) 4.9Mt
Steel shop (Ghent) 5.4Mt
Hot strip mill (Ghent) 4.7MtCold rolling mill
2 tandems (Ghent) 1 tandem (Liège)
1 pickling line (Ghent)
4Mt
1.4Mt
Annealing1 Continous annealing line (Ghent)1 Continous annealing line (Liège)1 Batch annealing furnace (Ghent)
0.9Mt
0.8Mt
Blast furnaces - Ghent
Hot strip mill - Ghent
3
ArcelorMittal BelgiumProduction facilities (2016)Galvanising
1 Electrolytic galvanising line (Genk) 1 Electrolytic galvanising line (Marchin)
3 Hot dip galvanising lines (Ghent) 2 Hot dip galvanising line (Flémalle)
1 Hot dip galvanising & Combiline (Ramet)
0.6Mt
2.5Mt
Organic coating1 Organic coating line (Geel)
1 Organic coating line (Ghent)1 Combiline & coating line (Ramet)
0.6Mt
Tinning Liège1 Cold rolling mill & Tandem (Tilleur)
1 Tinning line (Tilleur)0.3Mt0.1Mt
Tailored welded blanks 2 blanking lines & 6 laserwelding lines (Ghent)
1 blanking line (Liège)10Million11Million
Organic coating line - Liège
Strong finishing capacity More then 50% of shipments are coated products
4
Focusing on ArcelorMittal GentFully integrated steelworks
Highly effecient layout lower production costs & higher energy efficiency
Cold rolling mill and finishing
Hot strip mill
Blast furnaces
Steel shop
Raw materialpark
Coking plant
Sinter plants
Power plant
x
5
ArcelorMittal GentExcellent Maritime accessibility
• Canal Ghent-Terneuzen accessible for post-panamax vessels
• Max. measurements– Length: 265m– Width: 37m– Depth: 12.5m
• Quay– Length: 1,050m– Depth: 13.5m– Max. deadweight: 71,000T
Accessible to capesize vessels from 2022 (120Kt) (new lock in Terneuzen)
x
North Sea
6
ArcelorMittal Belgium
Shipments (Mt)
Product mix
7
Belgium
11%2%
UK
Netherlands
18%
19% France
30%Germany
Rest of Europe
20%
0
1
2
3
4
5
6
7
20152015
Industry
PackagingExportsInterworks outside AM Belgium
Automotive
Packaging
3%
Organic coated
11%
Galvanized47%
CR18%
HR21%
Destinations of shipments in Europe
Current operating environmentchallenges
North Sea
• Overcapacity is there to stay
• Resources scarcity, CO2, environment
• Avoid commoditization
• Sustainable financial results
Challenges
• Remain on top of the cost curve− Continuous improvement and WCM− Productivity
• Energy / Process efficiency− Adequate Raw Materials strategy− Compliance with EU regulations
• Adequate offer to customer− Permanent product innovation− Best-in-class service and quality− Constant innovation (viz. Industry
4.0)
• Generate enough cash to finance our CAPEX requirements
Our responses
8
Continuous improvementOur key to success
North Sea
WCM our overall approach for continuous improvement
2. Operational ExcellenceLow costs
3. Optimal order book
4. Investments and innovation
5. Sustainable future 1. Health &
Safety
9
Key objectives in a nutshell…
Health & Safety
Employee Engagement
Productivity & Reliability
Process efficiency & Quality
Innovation in all areas
Sustainability and Environment
• Indirect employment: +13,000• Direct employment: 4,700 employees
• Internal training department:− 2016: >5% of total wage bill
A much higher percentage than what is stipulated by the Belgian government: 1.9%
ArcelorMittal GentAn attractive employer
North Sea
Highly qualified employees & high level of expertise
70
20
10blue collarswhite collarsexempts
%
%
%Breakdown
11
0123456
0
1.000800
600400200
1.200
2016
5,3
2011
+159%
4,9
2001
4,3 4,4
20061991
3,2
1996
3,7
Productivity [ton/FTE]Shipments [Mt]
ArcelorMittal GentProductivity & shipments
Shipments 1991 Shipments 2016
Our productivity more than doubled over the last 20 years; portfolio optimized12
Hot rolled 38%Cold rolled57%
Coated5%
34%
Cold rolled32%
Coated34%
Hot rolled
ArcelorMittal GentQuality & service
North Sea
% shipments 1st choice
Continuous focus on quality and customer service
• Increasing the reliability of our installations• Investing in the training & development of our employees • Process automation• WCM – continuous improvement
13
95.0%
97.0%
95.5%
0.0%
96.0%
97.5%
96.5%
2012
97.097.3
2015
2.4%
96.5
20132010
95.8
2009 2014 2016
96.796.9 96.9
2011
94.9
InnovationPart of our DNAo
North Sea
Innovation key to our strength pushing the boundaries of steelmaking
- Circular economy belong to our business model - Innovative products and coatings- Industry 4.0 is our mindset, becoming the smart steel plant of
the future- Advanced automation in production processes and logistics
Collaboration with R&D; proximity of CRM and OCAS
Collaboration with theacademic world
Collaboration withinnovating clusters and
other industries
14
Industry 4.0 as our mindsetBecoming a smart plant
North Sea
15
Health &
Safety
Maintenance &
Reliability
Handling &
Logistics
Customer&
Supplierlink
Infrastructure: Wifi/broadband, Cyber Security, adequate hardware, servers
Big Data: Data captation, data platforms, analytics tools, modeling tools
Devices: Cameras, drones, sensors, beacons, tags, smartphones, tablets, hololens
Skills: Awareness, mindset, training, competences
X
X
X
Infinite possibilities
=
Production &
Quality
We’re pushing the boundaries to become the steel plant of the future
15
Process innovationComputerisation & automation
• In-house developed intelligence planning system determining the production sequence
Increased productivity Efficient use of materials and energy Shorter delivery times
• Online tracking of supplies
• Automation of crane movements 18 realised 2 ongoing 3 to come
16
Process innovationTrack & Trace
17
Providing our customers transparent and real-time tracking information on their shipment status
• Streamlining our processes• Saving on time
17
Product innovation - Fortiform®
Developed by the ArcelorMittal group
• Newest generation of ultra-high strength steel• Part of the solution for the automotive industry (95gr/CO2 in 2020):
Up to 20% lighter car body work Less fuel consumption Living up to the highest safety requirements
• The first Fortiform® steels are available (the whole range will exist of >10 products)
• €250 million invested in Ghent & Liège: steel shop, hot strip mill, continuous annealing, JVD
We are committed to develop the steel grades of the future
19
ArcelorMittal GentSustainability & environment
North SeaMillion EUR
0
50
100
150
200
250
300
350
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '05 '07 '08 '09 '10 '11 12 13 14 15 16
Water Waste + soil Air + noise Energy savings
10-15% of yearly investments goes towards environmental measures
20
ArcelorMittal GentBenchmark in energy efficiency
North Sea
10
12
14
16
18
20
22
24
26
1980 1985 1990 1995 2000 2005 2010 2015
GJ / to
n ho
t rolled stee
l
Steam recovery
1st continuous caster
Pulverised coal injection
Walking beam furnaces
Converter gas recovery
2nd continuous caster
The plant achieves top global energy consumption levels21
Demonstration plant: Ethanol from blast furnace gas
Commissioning expected by 2019/2020 Production: 80 million liters ethanol
100,000 electrical cars
120 wind mills
OR
CO2 reduction equal to
Equivalent to
(according to energy objective) Blast furnaces Gas treatment
Water treatment
Cogeneration
Bioreactor Distillation Bioethanol
Filter biomass
Breakthrough project enabling us to further reduce our CO2 emissions
22
TakewaysD
• ArcelorMittal Belgium is one of the best performing steel sites in Europe
• Driven by continuous improvement
• The challenge is to remain on top of competition
• We believe in a long-term success thanks to:– Effective implementation of our strategy– Innovation in all domains– Operational excellence– Right answer to social and environmental
challenges
23