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Growth plan 2012
11-13 September 2007 – Investor day – Paris
Aditya Mittal – Chief Financial Officer and member of GMB
1
DisclaimerForward-Looking Statements
This document may contain forward-looking information and statements about ArcelorMittal S.A. including Arcelor S.A.
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 Netherlands Authority for the Financial
Markets, the Commission de Surveillance du Secteur Financier (“CSSF”), the Luxembourg securities regulator and the
U.S. Securities and Exchange Commission (“SEC”) made or to be made by ArcelorMittal or previously made by its
predecessor, Mittal Steel Company N.V. (“Mittal Steel”). ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.
Additional Information
In connection with the proposed merger of ArcelorMittal with Arcelor, Mittal Steel, ArcelorMittal and Arcelor have filed
and will file important documents with the relevant securities regulatory authorities, including the filing with the U.S.
Securities and Exchange Commission of a registration statement that will include a proxy statement/prospectus. The proxy statement/prospectus will contain important information about the merger and related matters. ArcelorMittal and
Arcelor will make public such proxy statement/prospectus and mail the proxy statement/prospectus to the ArcelorMittal
U.S. shareholders. Additionally, a proxy statement/prospectus will be filed with the CSSF for European
shareholders. Investors and security holders are urged to read the applicable proxy statement/prospectus, and any
other relevant documents filed with the relevant securities regulatory authorities, when they become available and before making any investment decision. U.S. shareholders will be able to obtain a free copy of the U.S. proxy
statement/prospectus (when available) and other related documents filed with the SEC by ArcelorMittal (and Mittal
Steel as its predecessor) and Arcelor at the SEC’s web site at www.sec.gov and from ArcelorMittal and Arcelor at
www.arcelormittal.com. European shareholders will be able to obtain the European proxy statement/prospectus (when available) and the related documents at the registered office of Arcelor and ArcelorMittal and at www.arcelormittal.com.
2
Agenda
• Growth plan highlight and methodology
• Growth plan targets by division
• CAPEX and financing
• Greenfield and M&A update
• Conclusion
3
Growth plan highlight and methodology
4
Growth plan 2012 within ArcelorMittalthree dimensional growth strategy
BrownfieldTargeted
acquisitionGreenfield
Geography
Product
Value Chain
3D and key pillars growth
strategy
Products
Value Chain
Growth
plan 2012
Internal growth plan 2012 is only one part of group growth strategy
Value added mix
improvement growth
and value chain
growth
Greenfield
and M&A
growth
5
Growth plan 2012 highlight
Shipments target in million tonnes*
Approximately 75% of volume of the growth plan 2012 already done or approved for a
potential investment of USD 7bn over 6 years
*Growth plan 2012 adjusted with European long products remedies, Sparrows Points disposal and Sicartsa acquisition -Growth plan 2012 confirmed the Value Plan 2008
Comments about Growth plan
• Investment projects approved (15mt)
– Projects approved by investment allocation committee, by group management board and
by board of directors
• Investment project options (5mt)
– Projects still under internal study
• Shipments to be proactively adjusted to
economic condition when required
103111
131
5
15
80
90
100
110
120
130
140
2005 2006 Projects
approved
Projects
under study
Grow th plan
2012
6
Methodology and criteria used to assess initiatives
Costs required to ensure project fully complies with environmental
requirements now and in the future are minimal; no significant hurdles
for environmental approvals
8. Environmental issues
Adequate human resources with right skill set (e.g. project
management) have/will be provided for this project7. Deliverability
Project eliminates bottlenecks and optimises production flows;
logistical infrastructure is adequate in the production chain6. Balanced local flows
Project is being implemented in a plant that is a cost leader5. Cost leadership
Project requires minimal capex; or project is focused on assets that
are at or close to benchmark levels of utilisation, productivity, yield etc
4. Asset utilisation and
performance
Project minimises logistical costs in the delivery chain to customer;
logistical infrastructure is adequate in the delivery chain3. Flow to market
Project is focused on increased production of value-added products2. Value addition in
product mix
Project is strongly supported by market demand, including likely
behaviour of competitors1. Market demand
MarketMarketMarketMarket
IndustrialIndustrialIndustrialIndustrial
Internal capabilityInternal capabilityInternal capabilityInternal capability
EnvironmentalEnvironmentalEnvironmentalEnvironmental
Investment decision focus on high return projects
7
Growth plan targets by division
8
Growth plan 2012 by division
Growth projects focus on high growth market and low cost area
Shipments breakdown by segment in 2006 and in 2012 as projected in growth plan (mt)
*Include only projects done or approved
**Include projects done, approved and under study
***Include Sparrow Points disposal (30mt of shipments in 2006 including Sparrow Points)
****Include European long products remedies and Sicartsa acquisition
Long Carbon****
25 27 30
2006 2012P* 2012P**
Asia, Africa & CIS
2029 30
2006 2012P* 2012P**
Stainless
2.2 2.2 2.4
2006 2012P* 2012P**
Flat Carbon Americas***
27 31 32
2006 2012P* 2012P**
Flat Carbon Europe
33 37 37
2006 2012P* 2012P**
9
Flat Carbon Americas growth plan 2012
Shipments target in million tonnes* Main projects already done or approved
• Tubarao (Brazil)
– Heat Recovery Coke Batteries with a capacity of 1.5mt
of coke and power generation of 170 mw
– Slab capacity increase from 5mt to 7.5mt
– Hot strip mill expansion from 2.5mt to 4mt
• Lazaro (Mexico)
– CO2 absorption system to increase DRI production by 270,000t (module 1)
• US
– Includes 1mt volume recovery relative to production adjustment to market in 2006
*2012 includes Sparrows Point disposal
CAPEX for projects done,
approved or understudy
USD 0.5bn
Approximately 80% of projects of the growth plan 2012 already done or approved
31 3227
2006 2012 Projects done
or approved
2012 Projects
under study
Sparrows Point
10
Shipments target in million tonnes Main projects already done or approved
• Krakow (Poland)
– New Hot Strip mill leading to quality and yield improvements and additional capacity of
300,000t
– 2nd phase Hot Strip mill linked to Dabrowa
Gornica new continuous caster no.3 adding
1.7mt
• Liege (Belgium)
– Restart of blast furnace no.6 of 1.2mt leading to
a 2.7mt capacity
• Bremen (Germany)
– Slab expansion of 500,000t for line pipe
• Aviles (Spain)
– Plate expansion of 200,000t
Approximately 100% of projects of the growth plan 2012 already done or approved
Flat Carbon Europe growth plan 2012
CAPEX for projects done,
approved or understudy
USD 0.3bn
3733
37
2006 2012 Projects done
or approved
2012 Projects
under study
11
Shipments target in million tonnes* Main projects already done or approved
• Long carbon Americas
– Acindar (Argentina) steel capacity increase by 300,000t
– Turnaround program at Point Lisas (Trinidad), Sicartsa
(Mexico), Indiana Harbor (US) and Georgetown (US)
resulting in 0.4mt additional volume
– Continuous improvement in Steelton (USA), Juiz de Fora
(Brazil) and other South American to contribute for approximately 0.4mt additional volume
• Long carbon Europe
– Zagora (Spain) plant relocation adding 400,000t capacity
– Duisburg (Germany) contract for 200,000t additional hot
metal
– Differdange (Luxembourg) Revamping EAF adding 160,000t
– Hunedoara (Romania) Improved EAF adding 130,000t
– Rodange (Luxembourg) mill revamping adding 300,000t of
sheet piles
CAPEX for projects
done or approved
USD 1.4bn
Approximately 40% of projects of the growth plan 2012 already done or approved
Long Carbon growth plan 2012
*2012 include European long products remedies and acquisition of Sicartsa
2725
30
2006 2012 Projects done
or approved
2012 Projects
under study
12
Shipments target in million tonnes* Main projects already done or approved
*Includes Pipes & Tubes projects
CAPEX for projects
done or approved
USD 4.2bn
Approximately 85% of projects of the growth plan 2012 already approved
Africa, Asia & CIS growth plan 2012
• Africa
– Vanderbijlpark (South Africa) DRI increase of 350,000t
– Turnaround program at Annaba (Algeria) resulting in
400,000t additional volume
– Continuous improvement in various South African plants to contribute approximately 0.5mt additional volume
• Asia & CIS
– Kryviy Rih (Ukraine) liquid steel capacity to increase to
12mt including flats products
– Temirtau (Kazakhstan) productivity and bar mills projects
resulting in 1.2mt increase
– Zenica (Bosnia) restarting 1mt integrated route
• Pipes & Tubes
– Saudi Arabia (Asia) Greenfield project of 500,000t
– Various organic growth projects resulting in 300,000t
volume increase
29 30
20
2006 2012 Projects done
or approved
2012 Projects
under study
13
CAPEX and financing
14
A net debt well under control supported by a high free cash-flow generation
Free cash-flow* / EBITDA 2006 (%)Net debt on EBITDA annualized
Source: Exane BNP Paribas – Arcelor Mittal*To facilitate comparisons on this slide, free cash-flow is defined as proforma cash-flow from operations minus total CAPEX
0%
10%
20%
30%
40%
50%
60%
Min
ing
Aut
omot
ive
Arc
elor
Mitt
alC
hem
ical
s
Util
ities
Cap
ital g
oods
Bui
ldin
g m
ater
ials
Steel
Oil
and g
as
Aer
ospa
ce &
Def
ense
1.21.1
1.21.3
1.6
1.8
0
0.5
1
1.5
2
2.5
Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07
USD 23.2 billion of net debt at end of Q2 2007
15
Growth plan fully financed by cash-flow allowing debt reduction and M&A
EBITDA, cash-flow from operating activity and free cash-flow
in H1 2007 (USD billion)CAPEX program estimates related to growth plan 2012
CAPEX to grow with underlying EBITDA growth of the group
� Maintenance CAPEX to represent USD 2.5bn in 2007
2005 2006 2007 2008 2009 2010
EBITDA 14.9 15.3 Increase
4.7-5.0
4.6
4.1
M aint enance
Gro wt h
3.3
2.2
1.9
1.1
6.4
9.7
1.2
EBITDA Cash flow from
operating
activities
Free cash-flow
allocation
Financial charge,
tax, change in
w orking capital
Maintenance
CAPEX
Grow th CAPEX
Dividend
Debt reduction
and acquistions
16
Greenfield and M&A update
17
M&A and 3 dimensional growth strategy
Requirement for low risk and value creative M&A growth strategy:
- Leadership and global reach for maximising opportunities
- Price sensitive approach
- Experience and integration know-how to deliver synergies
No 1 in
North America
No 1 in
South America
No 1 in
Western Europe
No 1 in Eastern
Europe and CIS
No 1 in AfricaStrategic presence
in Asia
Value Chain
Product
Geography
�
�
�
Market position by region
M&A to remain a key pillar of growth strategy
A unique global and industrial intelligence
network multiplying number of opportunities
� Extremely large number of
opportunities allow high level
of selectivity and reduce risks
18
ArcelorMittal industrial position in South America
• Leading producer in South America with 10.1mt of production
in 2006; Arcelor Brasil is one of the most competitive producers
in the world with an EBITDA margin of 32.2% in 2006
• Acquisition for USD 4.2bn and 27 million shares elevating ArcelorMittal stake to 97.85%
• Transaction allowing to simplify structure, to optimize
debt/cash-flow, to potential gain on tax and to increase
exposure to growing South American market
Long Carbon
Flat carbon
Stainless steel
Earning accretive acquisition of Arcelor Brasil minority interests
Value Chain
Product
Geography �
Transaction expected to be EPS accretive
Brazil finished steel consumption (mt)*
*IISI and ArcelorMittal estimates
12.115.8
18.522
1994 2000 2006 2012P
19
Recent growth initiatives in Pipes & Tubes
Small dia welded tubes Seamless tubesLarge dia welded pipes
• Construction of a 500,000t seamless tubes mill
in Saudi Arabia to serve fast growing middle
east high quality grade tubes market
• Preliminary agreement to acquire a 100,000t
welded tubes mill and tubular components plant
for the automotive industry
• Project providing significant marketing and industrial synergies
Leveraging steel leadership to create a world class Pipes & Tubes leader
Saudi Arabia project
Acquisitions in France
Value Chain
Product
Geography
�
Pipes & Tubes industrial positioning
20
Mont-Wright QCM WabushSept IlesPort Cartier Pointe Noire
IOCC
QCM railway
Quebec Labrador
St Laurent river
Acquisition of Wabush mines operations
Getting closer to objective of 75% iron ore self-sufficiency
Value Chain
Product
Geography
�
Canada iron ore organisation
ArcelorMittal mining operationIron ore depositHydro-electric lineRailwayShipping terminal
• Acquisition for USD 67m of 100% of Wabush mine
operations by exercising option on 71.4% of the shares
not already owns
• Wabush mine operations to generate synergy with QCM
mining operation related in particular to optimisation of the
Wabush pellet plant (6mt capacity located in Pointe-Noire)
• Operations to increase Group pellet production by about
3.5 million tonnes per year
21
Tata
Planned acquisition of the steel distributor Rozak in Turkey
*IISI and ArcelorMittal estimates
Leveraging industrial leadership in Central & East Europe to grow in distribution
Warehouse Land for future service center
Rozak distribution network
Value Chain
Product
Geography
�
• Agreement to acquire 51% of Rozak, a Turkish Steel
Distributor
• Leading distributor in Turkey with a 450,000t of
products shipped in 2006, Rozak is expecting to expand rapidly in line with dynamic market growth
• Platform to expand AM3S in Central & East Europe but
also toward Middle East and Caspian area
6.912.7
21.931
1994 2000 2006 2012P
Turkey finished steel consumption (mt)*
22
Major Greenfied projects in India progressing
Indian steel industry and main Greenfield projects
AM Orissa
Main local producers
Greenfield projects
SAIL
SAIL
TataEssar
Ispat
JSW
POSCOSAIL
AM Jharkhand
*IISI and ArcelorMittal estimates
Orissa and Jharkhand Greenfield projects representing a 24mt steel potential
Value Chain
Product
Geography �Each Project
• Project to built a 12mt steel plant in 2
phases of 6mt with access to 600 million
tonnes of iron ore deposit
• Investment of USD 10 billion including
mining development, coke plant and
power plant
Jharkhand
• MoU signed on 12th October 2005
• Site to be announced immediately after the notification
of Rehabilitation & Resettlement policy by Jharkhand
government
Orissa
• MoU signed on 21st December 2006
• Site announced and application for lands and mines
underway
23
Conclusion
24
Demonstrating growth
Transforming tomorrow
� Internal growth plan expected to increase volume by 20% by 2012
�Greenfield projects in India to add another 20% volume growth
�Underlying profitability to progress significantly faster than volume growth as internal growth projects initiated in low cost area
�Question 2
� How do you consider Group growth plan?
� 1 – Disruptive to market
� 2 – Above expectation
� 3 – In line with expectation
� 4 – Below expectation
25
Q&A