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Q411 and 2011 Full Year Results
7 February 2012
Lakshmi N Mittal, Chairman and Chief Executive OfficerAditya Mittal, Chief Financial Officer
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1
Disclaimer
Forward-Looking Statements
This document may contain forward-looking information and statements aboutArcelorMittal and its subsidiaries. These statements include financial projections and estimatesand their underlying assumptions, statements regarding plans, objectives and expectations withrespect 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 ArcelorMittals management believes that theexpectations reflected in such forward-looking statements are reasonable, investors and holdersof ArcelorMittals securities are cautioned that forward-looking information and statements aresubject to numerous risks and uncertainties, many of which are difficult to predict and generallybeyond the control of ArcelorMittal, that could cause actual results and developments to differmaterially and adversely from those expressed in, or implied or projected by, the forward-lookinginformation and statements. These risks and uncertainties include those discussed or identified inthe filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission deSurveillance du Secteur Financier) and the United States Securities and Exchange Commission(the SEC) made or to be made by ArcelorMittal, including ArcelorMittals Annual Report on Form
20-F for the year ended December 31, 2010 filed with the SEC. ArcelorMittal undertakes noobligation to publicly update its forward-looking statements, whether as a result of newinformation, future events, or otherwise.
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2
Agenda
Results overview and recent developments
Market outlook
Results analysis
Outlook and Guidance
Safety remains the No1 priority for ArcelorMittal
1
2
3
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Safety performanceAnnual Health & Safety frequency rate* for mining & steel Key corporate social responsibility highlights:
ArcelorMittal was recently named in globalhuman resource firm Aon Hewitts list of TopCompanies for Leaders. ArcelorMittal wasranked in the top seven companies in Europe.
On December 2, 2011 ArcelorMittalcelebrated its 4th annual International Volunteer
Work Day. Within this event, thousands ofArcelorMittal employees volunteer in one of thedifferent activities that are carried out in its unitsto improve the lives of the people in thecommunity.
On October 13, 2011 ArcelorMittal was giventhe "Life Cycle Assessment Leadership" award
by The Worldsteel Association, whichrecognises the quality of the work performed bythe Life Cycle Analysis team of Global Researchand Development, based in Maizieres.
* IISI-standard: Fr = Lost Time Injuries per 1.000.000 worked hours; based on own personnel and contractors
ArcelorMittals Health and Safety performance improved again in Q411 and FY11
Quarterly Health & Safety frequency rate* for mining & steel
3.1
2.5
1.9 1.81.4
1.0
0.0
0.4
0.8
1.2
1.6
2.0
2.4
2.8
3.2
2007 2008 2009 2010 2011 2013
3.1
2.5
1.9 1.81.4
1.0
0.0
0.4
0.8
1.2
1.6
2.0
2.4
2.8
3.2
2007 2008 2009 2010 2011 2013
1.4 1.5 1.51.2
1.6
0.0
0.4
0.8
1.2
1.6
4Q 10 1Q 11 2Q 11 3Q 11 4Q 11
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4
Snapshot
FY11 EBITDA of $10.1bn, 18.7% higherthan FY10
FY11 Net income of $2.3bn, with Q4negatively impacted by non-cash charges
Own iron ore production 15.1Mt in 4Q11taking FY11 to 54.1Mt (+10.5% y-o-y)
Net debt at December 31, 2011 of $22.5billion as compared to $24.9bn atSeptember 30, 2011; reduction of $2.4bnduring 4Q11
Dividend proposed at $0.75 per share forFY 2012
Guidance: 1H12 EBITDA likely to be lowerthan the 1H11 but above 2H11 levels
1H12 EBITDA is likely to be lower than the 1H11 but above 2H11 levels
Group EBITDA (US$mn)1H
Net Debt
1.1
2.2
3.2
2.3
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2008 2009 2010 2011
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
Net Debt (USDbn) - LHS Net Debt / Average EBITDA - RHS
`
1H1H
1H
2H
2H
2H
0
2000
4000
6000
8000
10000
12000
2009 2010 2011
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Capex and Growth Plans
Steel growth capex has been
temporarily suspended Focus remains on core growth
capex in Mining: Liberia: phase 1 complete and running
at 4MT pa; phase 2 to 15Mt paremains under study
Andrade Mines (Brazil) - iron oreexpansion to 3.5MT pa (expectedcompletion in 2012)
AMMC: Replacement of spirals forenrichment to increase iron oreproduction by 0.8MT pa (expected
2013)
AMMC: Expansion from 16MT iron oreto 24MT pa by 2013 underway
5
2011 capex of $4.8bn vs. planned $5-5.5bn; FY 2012 capex expected to be approximately $4-4.5bn
Upgrade railway line linking mine to port in Liberia
AMMC: Mont-Wright Mining Complex
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Market outlook
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Apparent demand receded in 4Q11Global Apparent Steel Consumption (ASC)*(million tonnes per month)
US and European Apparent Steel Consumption (ASC)**(million tonnes per month)
Global ASC -5.2% in 4Q11 vs. 3Q11 [+2% y-o-y]
China ASC -10.2% in 4Q11 vs. 3Q11 {+0.2% y-o-y]
* ArcelorMittal estimates** AISI, Eurofer and ArcelorMittal estimates
EU ASC -3.4% in 4Q11 vs.3Q11 [-4.9% y-o-y]
US ASC -4.2% in 4Q11 vs. 3Q11 [+13.6% y-o-y]
Global ASC fell in 4Q 2011 v 3Q 2011
15
20
25
30
35
40
45
50
55
Jan-07
Jul
-07
Jan-08
Jul
-08
Jan-09
Jul
-09
Jan-10
Jul
-10
Jan-11
Jul
-11
Developing ex China
China
Developed
3
5
7
9
11
13
15
17
Jan-07
Jul
-07
Jan-08
Jul
-08
Jan-09
Jul
-09
Jan-10
Jul
-10
Jan-11
Jul
-11
EU27
USA
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Global leading indicators have rebounded
US energy, equipment investment andautomotive remain strong as manufacturingrebounds from the summer slowdown
In Northern Europe, uncertainty over theeuro debt crisis and falling demand in the
South are acting as a drag on growth. Latestindicators (German Jan12 PMI>50) aremore encouraging
Southern Europe in recession as austeritymeasures are extended, consumers cutback and construction weakens
Output in China in Q411 slowed on tightcredit and weak external demand with HSBCPMI staying below 50 (official PMI 50.5)
Regional Manufacturing PMI
Global leading indicators have rebounded somewhat over the past couple of months
Economic squeeze but sentiment up
30
35
40
45
50
55
60
65
Jan-06
Jul-0
6
Jan-07
Jul-0
7
Jan-08
Jul-0
8
Jan-09
Jul-0
9
Jan-10
Jul-1
0
Jan-11
Jul-1
1
Jan-12
China
Euro Area
USA
Source: Markit and ISM
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Eurozone construction PMI
USA Architectural Billings Index
Mixed signs in construction end markets
Developed world construction at low levels
Encouraging signs in the US,
Private non-res construction slowly picking up;Architectural Billings Index above 50 (52 in Dec)for last two months suggesting recovery H212
US residential construction likely to recover (from avery low level) as home sales and construction
permits rise
In Europe, uncertainty caused by the debtcrisis is delaying investment
Construction PMI falling further below 50
German construction market the only one with
solid fundamentals as it missed the pre-crisisboom.
Mild weather providing temporary boost to mostmarkets
Eurozone and US construction indicators**
US construction indicators (SAAR) $bn*
Encouraging signs in US construction, but European construction remains depressed
9
Expansion
Contraction
30
35
4045
50
55
60
65
200
300
400
500
600
700
800
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Residential
Non-Residential
* Source: US Census Bureau
** Source: Markit and The American Institute of Architects
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-0.5
0.5
1.5
2.5
3.5
4.5
5.5
6.5
Jan-06
Jul-0
6
Jan-07
Jul-0
7
Jan-08
Jul-0
8
Jan-09
Jul-0
9
Jan-10
Jul-1
0
Jan-11
Jul-1
1
China slowing but steel output to rebound
Soft landing still expected in China but thegovernment is only loosening policy slowlyputting off the recovery until Q212
Construction slowed rapidly toward year endwith newly started construction very weak inDec11. However, the slowdown is exacerbatedby the Nov11 deadline to start 10m publichousing units
Risk of a hard landing as controls on privatereal estate market cause distress amongdevelopers but we expect central governmentto ensure this is offset by increasing publichousing
Steel production was very weak in Q411 butwe still expect a pick-up through Q112 to peak
levels in Q212 and ASC growth of 5% in 2012
As expected exports averaged less than 4mmtin Q411 compared to a 4.9mmt peak in Mar11
China ASC grew 7.7% in 2011; Expected to grow 5% in 2012
10
China Construction Indicator (Million Metre sq.)
Net Exports of Finished Steel (Mt per month)
70
110
150
190
230
270
310
350
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Floor Space under construction (12mma)
Newly Star ted Construction (SA, 3mma)
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Destocking has ended in major marketsEurope Service Centre Inventories (000 MT)
Brazil Service Centre Inventories (000 MT)
US Service Centre Total Steel Inventories (000 MT)
China Inventories in 25 Major Cities (Mn MT)
Inventory levels are now considered normal; there had been a sharp destock in Europe Q411
11
0
2000
4000
6000
8000
10000
12000
14000
Jan-07
Ju
l-07
Jan-08
Ju
l-08
Jan-09
Ju
l-09
Jan-10
Ju
l-10
Jan-11
Ju
l-11
2
2.2
2.4
2.6
2.8
3
3.2
3.4
3.6USA (MSCI)
Months Supply
1000
1200
1400
1600
1800
2000
2200
2400
2600
Jan-0
7
Jul-0
7
Jan-0
8
Jul-0
8
Jan-0
9
Jul-0
9
Jan-1
0
Jul-1
0
Jan-1
1
Jul-1
1
1.6
1.8
2
2.2
2.4
2.6
2.83
3.2
3.4
EU (EASSC)
Months Supply
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
Jan-07
Jul-0
7
Jan-08
Jul-0
8
Jan-09
Jul-0
9
Jan-10
Jul-1
0
Jan-11
Jul-1
1
1.5
2
2.5
3
3.5
4
4.5Flat stocks at service centres
Months of s upply
2
4
6
8
10
12
14
16
18
20
Jan-07
Jul-0
7
Jan-08
Jul-0
8
Jan-09
Jul-0
9
Jan-10
Jul-1
0
Jan-11
Jul-1
1
Jan-12
Flat Long
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0
200
400
600
800
1000
1200
1400
2008 2009 2010 2011 2012
China EU27 NAFTA ROW
12
Global apparent steel consumption
6.5-7%6.5-7%
6.5-7%
6.5-7%
China: +5% YoY
EU27: +6.1% YoY
RoW: +5.7% YoY
NAFTA: +5.5% YoY*
Apparent steel consumption growth of +6.3% in 2011; we estimate growth ~4.5-5%* in 2012
RoW: +3.8% YoY
NAFTA: +9.7% YoY
China: 7.7% YoY
EU27: +/- 1% YoY*
* Base case assumption is low single-digit growth in developed world apparent steel consumption (ASC); a consumer-sentiment driven technical recession in EU and US could lead to a lowsingle-digit decline in developed world ASC; a deeper Euro-debt crisis with negative YoY GDP growth could see low double-digit decline in developed world ASC
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Apparent demand recovery driving pricereboundSpot iron ore, coking coal and scrap price
(index IH 2008=100)Regional Steel price HRC ($/t)
Steel prices rebounding since late Q4
13
400
500
600
700
800
900
1000
1100
1200
1300
Jan-08
Jul-0
8
Jan-09
Jul-0
9
Jan-10
Jul-1
0
Jan-11
Jul-1
1
Jan-12
China domestic Shanghai
N.America FOB Midwest
N.Europe domestic ex -w orks
30
40
50
60
70
80
90
100
110
120
130
Jan-08
Jul-0
8
Jan-09
Jul-0
9
Jan-10
Jul-1
0
Jan-11
Jul-1
1
Jan-12
Iron Ore
Coking Coal
Scrap
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Financial Results
ArcelorMittal Dofasco, Hamilton Port and Steel works
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* Non Steel EBITDA variance primarily represents the gain/loss through sale of by- products
** Others primarily represents delta impact from provisions, DDH income and forex (net impact on revenue and costs)
EBITDA analysis 3Q11 v 4Q11
EBITDA decreased by 28.8% in 4Q11 v 3Q11 primarily due to price/cost squeeze
($million)
18
1,714
2,408
(673)
(127)
88
Q3'11 EBITDA Volume & Mix Selling Price /Cost
Non SteelEBITDA*
Others** Q4'11 EBI TDA
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1714
47-192
-1000 -1000
177
-808
0
-1667
6
659659782
1,168
2,408
-123
-392
-1,240
16
Group P&L
EBITDA
Depreciationimpa
irment
andrestructuring
charges
Operating
Income
Incomefrom
Equity
FinanceCost
Pre-taxProfit
Taxesandno
n-
controllingInterest
Netincome
/
(Ioss)from
ContinuingOps
Discontinued
Operations
Netincome/(lo
ss)
4Q
2011
Depreciation: (1220)
impairment: (228)
Restructuring (219)
Interest: (429)
Forex and other: 13
Current tax: (185)
Deferred tax: (648)Non-controlling 25
Weighted Avg No of shares: 1549
Diluted Weighted Avg No of shares: 1549
EPS = $ -0.65/share
Diluted EPS = $ -0.65/share
Net loss from continuing operations was $1 billion during 4Q11
($million)
3Q
20
11
($million)
(0)
Depreciation: (1155)
impairment: (85)
Interest: (477)
Forex and other 85
Current tax: (209)
Deferred tax: 55
Non-controlling 31
Weighted Avg No of shares: 1549
Diluted Weighted Avg No of shares: 1611
EPS = $ 0.43/share
Diluted EPS = $ 0.19/share
(0)
-416
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17
Free Cash flow
($million)
Free cash flow primarily driven by working capital release
1,714
2,878
1,403
1,843
(1,475)
(679)
Net
financials,
tax
expenses
and others
Change in w orkingcapital
Capex
EBITDACash flow from
operations Free cash flow
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18
Group Cash flow and net debt
Net Debt at 30September 2011
Free CashFlow
Net Debt at 31December 2011
Net M&A Dividends
Net debt decreased primarily due to improved operating cash flow and cash inflow from Macarthur deal
Forex Others
($million)
24,887
22,513
1403
830289 332 98
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19
Outlook and Guidance
Upgraded railway line linking mine with port at LiberiaBaffinlandArcelorMittal Dofasco, Hamilton Port and Steel works
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20
Outlook and guidance
1H12 Group EBITDA expected to show improvement over 2H11 but lower than 1H11
Steel:
- Steel shipments in 1H12 are expected to be similar
to 1H11 levels
Mining:
- Mining volumes in 1H12 are expected to be higherthan 1H11
- FY 2012 own iron ore and coal production isexpected to increase by approximately 10% over2011 levels
Capex:
- Continued focus on core growth capex (mining)
- FY 2012 capex expected to be ~$4-4.5 billion
Debt and working capital:
- Further reduction in net debt anticipated with focuson working capital management and non-core asset
divestments- Consistent with stated objective to retain investment
grade credit rating
EBITDA progression 2009 to 1H 2012E ($million)
1H
1H
1 H
1H
2H
2H
2 H
0
2 0 0 0
4 0 0 0
6 0 0 0
8 0 0 0
1 0 0 0 0
1 2 0 0 0
2 0 0 9 2 0 1 0 2 0 1 1 1 H 2 0 1 2
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21
Questions
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Appendix
ArcelorMittal Dofasco, Hamilton Port and Steel works
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Iron ore growth 2010-2015, target 100MTincluding strategic contracts
2015 iron ore target growth plan on track
Canada
Brazil
Liberia
Phase
1 & 2
Liberia
Phase 1
Own iron ore growth target (million metric tonnes) (Excluding strategic contracts)
23
Canada
Target of 10% growthin iron ore in 2012
Strategic contracts
forecast of 16Mt by2015*
Target iron ore at~100MT by 2015(including strategiccontracts)
* Strategic contracts include the Kumba (currently under dispute) and Cleveland Cliffs contracts
49
3 11
54
5
11
14
84
0
20
40
60
80
100
2010 Operational
effeciency
Brownfield Greenf ield 2011 Operational
effeciency
Brow nfield Greenfield 2015 plan
A l Mitt l Mi C d (AMMC)
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14 15
1
9
5
10
15
20
25
2011 2013
Brownfield expansion
Canada base
ArcelorMittal Mines Canada (AMMC):expansion underway
Expansion of our Mont Wright mine at AMMC andconcentrate capacity to 24Mt pa due 2013 (from 16Mtpa postoperational improvements) approved
Expansion capitalising on existing infrastructure, productquality and experienced workforce
Capex C$1.2bn for mine and concentrator plant expansion*
Cash cost is circa US$35/tonne
Advantageously located with easy access to European andUS markets
Mining expansion plan (concentrate) Million mt
Canadian industrial location ArcelorMittal Mines Canada overview
* Total scheme investment of US$2.1 billion includes investment in expanding the pellet plant which has not yet been committed to
Bloom LakeBloom Lake
Strategic advantage from exclusive use of own rail and port facilities
24
* AMMC 2013 brownfieldexpansion includes 1mtincrease for spirals
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14
15
0
4
8
12
16
2011 2012F 2015F
`
Phase 1: DSO complete
240km rail rehabilitation completed
Upgrade of Buchanan port and materialhandling facilities completed
First direct shipping ore (DSO) productshipped in September 2011
Now producing at 4mtpa rate
Phase 2: 15mtpa concentrate from2015
Expansion to 15mtpa requiresinvestment in a concentrator andremains under study
Liberia progress
25
Liberia greenfield planned expansion (Million MT)
Industrial location of mine
All marketable tonnes
Guinea
AtlanticOcean
Liberia
Ivory Coast
Yekepa
Buchanan
Sierra Leone
Railway link from Yekepa
to Buchanan (240km)
Liberia expansion on track
Liberia greenfield progress
Total project capex (Phase 1 and 2) US$2 billion
Capex of US$0.7 billion by end of 2011
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26
Segment Highlights
Q411 saw underlying EBITDA decline versus Q311 in all business segments reflectingweak operating conditions
FCA: EBITDA + 50% y-o-y; $43 EBITDA/t
Weaker prices in all markets; ASP -$42/t compared to 3Q11
Shipments 0.5% marginally higher than 4Q10
FCE: EBITDA -95.2% y-o-y;$4 EBITDA/t
ASP -67/t compared to 3Q11
Shipments 6.1% lower than 4Q10
Long: EBITDA +7.3% y-o-y;$58 EBITDA/t
ASP -$61/t compared to 3Q11
Shipments 2.6% higher than 4Q10
AACIS: EBITDA +10.7% y-o-y; $78 EBITDA/t
ASP -$58/t compared to 3Q11
Shipments -9.6% lower than 4Q10
AMDS: EBITDA loss -$19 million
ASP -$62/t compared to 3Q11
Shipments 4.3% higher than 4Q10
Mining: EBITDA +36.7% y-o-y Sales +47.8% higher than 4Q10
Own iron ore production +20.2% y-o-y;
Own coal production +24.5% y-o-y
Segmental EBITDA (US$mn)
-1000
100200300400500600700800900
1000
FCA FCE Long AACIS AMDS Mining
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
Steel Segment EBITDA/tonne (US$)
-25
0
25
50
75
100
125
150
175
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
FCA FCE Long AACIS AMDS
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27
Flat Carbon Americas (FCA)
EBITDA decreased to $237m from $420min Q311 and increased from $158m inQ410
Crude steel production increased 2.4% to6.0Mt from 5.9Mt in Q311 primarily due toreturn to normal production followingdowntime in North America operations inQ311 offset by lower production primarily
in South America operations.
Steel shipments decreased 4.4% to 5.5Mtfrom 5.7Mt in Q311. Shipments declined inall operations with the exception of the USoperations.
ASP decreased 4.6% to $868/t from $910/tin Q311
FCA EBITDA decreased sharply from Q311 primarily due to price cost squeeze
FCA Steel shipments (000t)
4000
4200
44004600
4800
5000
5200
5400
5600
5800
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
FCA - EBITDA (US$mn, LHS) and ASP (US$/t, RHS)
0
200
400
600
800
1000
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
500
600
700
800
900
1000
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28
Flat Carbon Europe (FCE)
EBITDA decreased to $26m from $367m inQ311 and $543m in Q410
Crude steel production decreased 10.4% to6.6Mt from 7.4Mt in Q311 primarily due toweaker market sentiment primarily in Europe
Steel shipments decreased 3.1% to 6.2Mtfrom 6.4Mt in Q311 due to weaker market
conditions and strong destocking activity
ASP decreased 6.6% to $954/t from $1021/tin Q311
Operating performance in Q411 wasnegatively impacted by impairment chargesof $56 million relating to various idled
facilities, offset by non-cash gains of $163million relating to dynamic delta hedge(DDH) income and $93 million recorded onthe sale of carbon dioxide credits.
FCE profitability declined with price cost squeeze amidst weak operating conditions
FCE - EBITDA (US$mn, LHS) and ASP (US$/t, RHS)
0
100
200
300
400
500
600700
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
650
700
750
800
850
900
950
10001050
FCE Steel shipments (000t)
4000
4500
50005500
6000
6500
7000
7500
8000
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
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29
Long Carbon Americas & Europe (LCAE)
EBITDA decreased to $338m from $438m in
Q311 and from $315m in Q410
Crude steel production decreased 2.4% to5.5Mt from 5.6Mt in Q311.
Seasonally production was lower in theAmericas due to drawdown of inventory andthe weaker market demand.
Steel shipments decreased 2.3% to 5.8Mtfrom 6.0Mt in Q311 due to the summerholiday period in Brazil and lower demand inNorth America and Europe
ASP decreased 6.3% to $906/t from $967/tin Q311
Q411 operating performance was negativelyimpacted by impairment charges of $160mincluding $151m for extension of idling atArcelorMittal Madrid electric arc furnace
Long Carbon profitability declined due to lower volumes and lower prices
Long - EBITDA (US$mn, LHS) and ASP (US$/t, RHS)
0
100
200
300
400
500
600
700
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
550
650
750
850
950
Long Steel shipments (000t)
4000
4500
5000
5500
6000
6500
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
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30
Asia, Africa and CIS (AACIS)
EBITDA decreased to $238m from
$284m in Q311 and increasedfrom $215m in Q410
Crude steel production increased2.5% to 3.6Mt from 3.5Mt in Q311,primarily due to improvedproduction in Ukrainian operations
Steel shipments increased 2.0% to3.1Mt from 3.0Mt in Q311
ASP declined 7.5% to $713/t from$771/t in Q311
AACIS profitability declined primarily due to price cost squeeze
AACIS - EBITDA (US$mn, LHS) and ASP (US$/t, RHS)
0
100
200
300
400
500
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
500
550
600
650
700
750
800
AACIS Steel shipments (000t)
2800
2900
3000
3100
3200
3300
3400
3500
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
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31
Distribution Solutions (AMDS)
EBITDA decreased to ($19m) from$48m in Q311 and $87m in Q410
Steel shipments increased 7.6% to5.0MT in Q411 as compared to4.6MT in Q311
ASP declined 6.1% to $948/t from$1010/t in Q311
AMDS profitability declined due to lower margins from European operations due to weak market
AMDS - EBITDA (US$mn, LHS) and ASP (US$/t, RHS)
-40
-20
0
20
40
60
80
100
120140
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11600
700
800
900
1000
1100
AMDS Steel shipments (000t)
3800
4000
4200
4400
4600
4800
5000
5200
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
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32
Mining
EBITDA was lower at $779m as compared to$842m in Q311 and higher than $570m in Q410
Own iron ore production 15.1Mt increased 7.2%as compared to 14.1Mt in Q311 primarily due toLiberia and Mexico
Total iron ore shipments increased 12.8% to15.3Mt (vs. 13.5Mt in Q311) of which 8.5Mt atmarket prices (vs. 6.7Mt in Q311) and 6.8Mt oncost-plus basis (vs. 6.9Mt in Q311)
Own coal production increased 5.6% to 2.2Mt inQ411 (vs. 2.1Mt in Q311)
Mining benefited from higher overall production volumes offsetby lower average selling prices following the change to the seaborne benchmark pricing system
Definitions: Market priced tonnes represent amounts of iron ore or other raw materials from ArcelorMittal mines that could be sold to thi rd parties on the open market. Market priced tonnes that are not sold to third parties
are transferred from the Mining segment to the Companys steel producing segments at the prevailing market price. Shipments of raw materials that do not constitute market price tonnes are transferred internally on a
cost-plus basis.
Mining EBITDA (US$mn)
0
100
200
300
400
500
600
700800
900
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
Iron Ore (million tonnes)
0.0
5.0
10.0
15.0
20.0
4Q 10 1Q 11 2Q 11 3Q 11 4Q 11
Own Production Shipped at "Market price" Shipped at "Cost-plus"
Coal (million tonnes)
0.0
0.5
1.0
1.5
2.0
2.5
4Q 10 1Q 11 2Q 11 3Q 11 4Q 11
Own Production Shipped at "Market price" Shipped at "Cost-plus"
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33
Balance Sheet highlights
OWC and rotation days* (USD billion) Net Debt (USD billion) & Net Debt/Average EBITDA** Ratio (x)
* Rotation days are defined as days of accounts receivable plus days of inventory minus days of accounts payable. Days of accounts payable and inventory are a function of costof goods sold. Days of accounts receivable are a function of sales.** Based on yearly average EBITDA since January 1, 2004.
Rotation days decreased to 67 days during 4Q11 from 73 days in 3Q11
0
4
8
12
16
20
24
28
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
0
20
40
60
80
100
120
140
Working capital (USDbn) - LHS Rotation day - RHS
67 days
0
5
10
15
20
25
30
35
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
0.0x
0.5x
1.0x
1.5x
2.0x
Net Debt (USDbn) - LHS Net Debt / Average EBITDA - RHS
1.6x
`
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8.6
2.2
0.63.9
Liquidity at 31/12/11 Debt due in 2012
Unused
credit lines
Cash &
equivalent
12.5
Commercial paper
2.8
Short term debt &Others
34
Liquidity and debt maturity profileDebt maturities
(US$ billion)
Liquidity position at December 31, 2011
(US$ billion)
Continued strong liquidity position and lengthening of debt maturities
$4bn syndicated credit facility matures 06/05/15 $6bn syndicated credit facility matures 18/03/16
$0.3bn bilateral facility matures 30/06/13
Liquidity lines:
0
2
4
6
8
10
12
2012 2013 2014 2015 2016 >2016
Bonds Convertibles Long term debt facility Other Commercial Paper
2.8
3.7
2.0
9.7
4.0
4.2
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Contacts
Daniel Fairclough Global Head Investor [email protected]+44 207 543 1105
Hetal Patel UK/European Investor [email protected]+44 207 543 1128
Valrie Mella European and Retail Investor [email protected]+44 207 543 1156
Maureen Baker Fixed Income/Debt Investor [email protected]+33 1 71 92 10 26
Thomas A McCue US Investor [email protected]+312-899-3927
Lisa Fortuna US Investor [email protected]+312-899-3985
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