ArcelorMittal - Transforming Tomorrow, Lakshmi Mittal Investor Presentation, Paris 2007

Transforming tomorrow

11-13 September 2007 – Investor day – Paris

Lakshmi Mittal – President and Chief Executive Officer

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 itsforward-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

• 3 major achievements

• Industry opportunities and challenges

• Growth targets and strategy

• Conclusion

3

3 major achievements

4

A successful proactive adjustment of supply for improved market stability

Source: SBB

Sustainable ROIC

Industry cash cost

HRC – North America domestic FOB US Midwest mill $/short ton

200

300

400

500

600

700

800

Jul-9

8Ja

n-99

Jul-9

9Ja

n-00

Jul-0

0Ja

n-01

Jul-0

1Ja

n-02

Jul-0

2Ja

n-03

Jul-0

3Ja

n-04

Jul-0

4Ja

n-05

Jul-0

5Ja

n-06

Jul-0

6Ja

n-07

Jul-0

7

-33%13 monthsJuly 2002 to July 2003

-36%21 monthsApril 2000 to December 2001

-12%5 monthsApril 2007 to August 2007

-23%7 monthsJuly 2006 to January 2007

-39%12 monthsAugust 2004 to July 2005

-33%24 monthsApril 1997 to March 1999

Drop in HRC

price during

period

Length of the

downturn

Date

ArcelorMittal step-change in the consolidation process has been the main driver of a new market oriented behaviour

Analysis steel downturns in the US market since 1997

5

A successful and faster than anticipated integration

More synergies captured in purchasing and SG&A than expected

Integration milestones

- Announcement of Group Management board

- Value plan 2008 harmonised and synergies

target confirmed top down

- Integration office in place

- Internal roadshow

- Announcement of the complete organisation

- Synergies target confirmed bottom-up and

incorporated in budget

- Launch of Web-TV and intra-net

- Human Resources harmonisation

- Worldwide H&S day

- Closure of the integration office

- Brand launch

- Acceleration of captured synergies

ArcelorMittal annualised synergies

Captured at

31/12/06

Captured at

31/03/07

Captured at

30/06/07

Estimated at

30/09/07

SG&A and otherManufacturing & Process OptimisationPurchasingMarketing & Trading

269

573

973

1,280Q3 2006

Q4 2006

Q1 2007

Q2 2007

6

A successful 3 dimensional strategy for sustainability and for growth

A unique geographical and product diversification coupled with upstream and downstream integration providing reduced risk and cyclicality

Geographical breakdown of production in 2006

Geography Products Value Chain

Coated

16%

CRC

10%

HRC

21%

Bars & Rebars

9%

Semi Long

4%

Other f lat

4%

Plates

4%

Tin plate

3%

Wire Rod

8%

Sections

8%

Slabs

7%

Stainless

2%Pipes & Tubes

1%Wire products

3%

4538

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Internal iron ore

production and

strategic contracts

Distribution through

AM3S

Shipments by products in 2006

Upstream and downstream integration

North America

22%CIS and Central

Asia

10%

Africa

7%

South America

9%

West Europe

34%

Central & East

Europe

18%

7

3 achievements improving resilience to cycle and preparing growth

EBITDA growth dynamic from:

- Brownfield and greenfield expansion

- Value added investment

- Mining and distribution growth

- Cost reduction and management gains

- Merger synergies

- Targeted acquisition

ArcelorMittal EBITDA pro-forma

2004 2005 2006 9m 2007G

USD16bn USD14.9bn USD15.3bnUSD 14.4-14.6bn

HRC FOB US Midwest $/s.ton

Stability period Step change period

Pre-merger Post-merger

*

*Guidance

8

Industry opportunities and challenges

9* Developed world includes US, Canada, EU15, Japan and KoreaSource IISI

World steel apparent demand from 1950 to 2006 – millions of tonnes

A new demand growth dynamic due to China and emerging economies

World steel market expected to grow by 3 to 5% per year for the next 10 years driven by continuing industrialisation from China and emerging economies

Steel consumption per capita in 2006 (kg)

Breakdown of world population

0

200

400

600

800

1000

1200

1400

1950

1960

1970

1980

1990

2000

+5%/y

+1%/y

+7%/y

China

22%

Emerging World

63%

Developed

World*

15%

86

266

467

0

100

200

300

400

500

Emerging World China Developed

World*

10

Chinese growth expected to continue at strong pace in two of the “three Chinas”

Steel consumption per capita in 2006e (kg)*

West China

(80 kg)

Coastal China

(575kg)

Middle China

(100 kg)

Development and growth potential

Population Migration

*IISI and ArcelorMittal estimates

Apparent consumption of finished steel (mt)*

ArcelorMittal is well positioned to capture growth opportunities in China through its different partnerships and participations


High case and low

case scenario

266

606845

1002

0

200

400

600

800

1000

1200

China Japan Taiw an Korea

0

100

200

300

400

500

600

700

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

P20

10P

2012

P

11

American population breakdown

Low steel consumption in South America represents a growth opportunity

Leader in the region and present in all products (Long, Flat & Stainless steel), ArcelorMittal is ideally positioned to capture market growth



397

11711098770

200

400

600

Other

South

America

Brasil Argentina Venezuela United

States

Central

America

19%

South

America

43%

US & Canada

38%


0

10

20

30

40

50

1994

1996

1998

2000

2002

2004

2006

2008

P

2010

P

2012

P

12

Africa, Middle East and CIS new growth supported by the oil and commodity boom

Population in Africa, Middle East and CIS (million)



Number 1 in Africa, CIS and principal supplier of steel to Middle East, ArcelorMittal has a unique opportunity to leverage its position in those markets


0

200

400

600

800

Middle East CIS Africa

149 163248

467

1046257210

200

400

600

Oth

er A

frica

Oth

er C

IS

Egypt

South

Afri

ca

Ukr

aine

Mid

dle

East

Rus

sia

Dev

elop

ed W

orld

*

0

50

100

150

200

1994

1996

1998

2000

2002

2004

2006

2008

P

2010

P

2012

P

Africa Middle East CIS

13

The very promising Indian steel market


Steel consumption per capita in 2006 (kg)Indian steel industry and main greenfield projects

AM Orissa

ArcelorMittal Greenfield projects

SAIL

SAIL

TataEssar

Ispat

JSW

POSCOSAIL

AM Jharkhand

266

714

72380

200

400

600

800

India South East

Asia

China Japan &

Korea


With 2 major greenfield projects in the country, ArcelorMittal is ideally positioned to benefit from the strong and sustainable growth of the Indian market

0

10

20

30

40

50

60

70

1994

1996

1998

2000

2002

2004

2006

2008

P

2010

P

2012

P

14

Mature markets to benefit from new dynamic members in EU27 and NAFTA

Approx. 50% of the EU27 and NAFTA growth is expected to come from Central & East Europe and Mexico where ArcelorMittal is the leading steel producer





344 402293278

177

0

200

400

600

Romania Poland Turkey Other new

EU (10)

EU 15

531

161

397

0

200

400

600

Mexico US Canada


0

50

100

150

200

250

300

1994

1996

1998

2000

2002

2004

2006

2008

P

2010

P

2012

P

Central & East Europe European Union (15)

0

50

100

150

200

1994

1996

1998

2000

2002

2004

2006

2008

P

2010

P

2012

P

Mexico US & Canada

15

Growth

Product

Cost

Sustainable Development

– Assuming Corporate Social Responsibility and facing global

warming

– Facing constant cost pressure in particular from raw materials

and energy

– Responding to customer demands for improved services, quality

and innovations

– Expanding capacity to answer demand growth without creating

over-capacity

Facing the new challenges of the steel industry

ArcelorMittal strategy to answer the industry’s new challenges

� Systematically challenging investments projects

� Investing in value added products and downstream

� Realising operational excellence and global sourcing

� Implementing ambitious CSR strategies

16

Growth targets and strategy

17

An internal growth plan of more than 20%* increase in shipments by 2012

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2006 2012P

1,500 - 1,600

1,244

World crude steel production (million tonnes) ArcelorMittal shipments (million tonnes)

ArcelorMittal target for internal growth matching world market low case scenario growth to ensure healthy supply/demand equilibrium

World steel production expected to grow between 20% and 30% by year 2012 (or a

yearly growth rate of 3% to 5%, depending on high or low case scenario

Internal growth plan target to increase ArceloMittal shipments by 22mt* to

130mt by year 2012

*Internal growth related to internal investment projects done, approved and under study. Volumes in 2012 are excluding Sparrows point disposal and European remedies and includes Sicartsa acquisition

0

20

40

60

80

100

120

140

2006 2012 including

projects done or

approved

2012 including

projects under

study

131

111

126

18

A very achievable target considering leadership in high growth markets

• Marketing

• Purchasing

• Human Resources

• Industrial assets• Mining assets

• Technology

• R&D

• Financials

ArclorMittal production breakdown and market position in 2006

Africa

7%

CIS and

Central Asia

10%

Central & East

Europe

18%West Europe,

US & Canada

52%

Latin America

13%Rank No 1

Rank No 1

Rank No 2

Rank No 1

Uncontested global leadership and capability in:

Approximately half of ArcelorMittal industrial network is located in high potential growth markets

… to provide leverage for high return growth in emerging economies

19

Value chain and product growth adding to volume growth plan

Value added products and enhancement target (mt)

Iron ore production internal growth plan (mt)*

AM3S volume increase target (mt)**

Mining growth

Product growth

Distribution growth

3 dimension growth strategy not only focused on internal capacity growth but also mining, distribution and value added mix growth

*excluding strategic contracts Cleveland Cliffs (11.2mt), South Africa (8.5mt) and Brazil (1.4mt)

**excluding trading

0

2

4

6

8

10

12

14

16

18

20

Coated CRC Sections Plates Tin plate Upgraded

products

by 2012

14mt

0

5

10

15

20

2006 2012

+6mt

+60%

45

5153

58

66

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010

20

Achieving cost leadership and operational excellence

Steel industry HRC production cash cost in H2 2006e* ArcelorMittal HRC production cash cost in H2 2006

0

100

200

300

400

500

Africa

& C

IS

South

Am

eric

aR

est o

f Asi

a

Chi

na

Japa

n

Europ

e

Nor

th A

mer

ica

Average 420 USD/t

0

100

200

300

400

500

CIS

Africa

Sou

th A

mer

ica

Europe

Nor

th A

mer

ica

Average 390 USD/t

• Knowledge management and best practice

• Practical good capital management

• Development of a competitive supply base

• Transfer of best practice from Europe and Brazil to US

• Specific energy cost reduction in FCA

• Increasing sourcing from China and alternative suppliers

ArcelorMittal strategy is not only about growth but also continuous cost reduction beyond merger synergies

Group strategy Example of initiatives

* WSD, JPM, BCG and ArcelorMittal estimates

21

Implementing a Corporate Social Responsibility strategy

12 commitments to transform tomorrow

Human Resources

Environment Communities Shareholders

• Health & Safety

• Social dialogue

• Human rights and best

in class labour

standards

Social Commitments

Environmental Commitments

Communities Commitments

Corporate Governance

Commitments

• Greenhouse gas

emissions

• Waste, water resources and pollution

• Research &

Development of product sustainability

• Board independence

• Equal rights among

shareholders

• Best in class

shareholder dialogue

• Local economic

development

• Foundation for social

investment practice

• Community engagement around

new acquisition and

resettlements

22

Conclusion

23

ArcelorMittal new dynamic

Transforming tomorrow

�A strong resilience to economic cycle

�An ambitious internal growth plan

� Long term Greenfield projects and M&A to accelerate growth

�Question 1

� ArcelorMittal deserves a premium to Steel industry multiples

due to:

� 1 - Uncontested leadership

� 2 - More stable profile

� 3 - Superior growth profile

� 4 - Combination of above points

� 5 - Does not deserve a premium

24

Q&A