Q411 IR Presentation

8/3/2019 Q411 IR Presentation

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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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22

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


Shipments -9.6% lower than 4Q10

AMDS: EBITDA loss -$19 million


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


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


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
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

Q411 IR Presentation

Documents

Transcript of Q411 IR Presentation