steel analyst visit -...

24th March 2010

ArcelorMittal BrazilSteel Analyst Community Visit

Disclaimer

Forward-Looking StatementsThis document may contain forward-looking information and statements about

ArcelorMittal 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 ArcelorMittal’s management believes that theexpectations reflected in such forward-looking statements are reasonable, investors and holdersof ArcelorMittal’s 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 differ

1

beyond 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 ArcelorMittal’s Annual Report on Form20-F for the year ended December 31, 2008 filed with the SEC. ArcelorMittal undertakes noobligation to publicly update its forward-looking statements, whether as a result of newinformation, future events, or otherwise.

Agenda• ArcelorMittal Americas

– ArcelorMittal history and values– Long and Flat Carbon Americas Organisational Structures & Industrial presence

• ArcelorMittal Brazil

– Structure– Aligning Strategy– Key figures– Macroeconomic Vision Brazil

• ArcelorMittal Long Carbon Brazil

2

– Facilities and Product Mix– Positioning in the Value Chain– Health and Safety, Corporate Responsibility & Environment– Key Figures

• ArcelorMittal Monlevade

– ArcelorMittal Monlevade Overview– Product Applications – Production flow and equipment– Competitive strengths– Performance Highlights

• ArcelorMittal Monlevade Expansion project

• Q&A

ArcelorMittal

3

ArcelorMittal history and values

4

The world's leading steel company, with operations in more than 60 countries

2009 revenues of $65.1 billion and crude steel prod uction of 73.2 million tonnes (8% of world steel output)

Several international Partnerships and Joint Ventur es

ArcelorMittal brand values: Sustainability, Quality and Leadership

ArcelorMittal Americas

5

ArcelorMittal AmericasLong and Flat Carbon Structures

Long AmericasGerson A. Menezes

Group Management Board

Flat Carbon Americas Long Carbon Americas

Lakshmi Mittal (CEO) Sudhir MaheshwariAditya Mittal(CFO) Michel WurthDavinder Chugh Christophe CornierPeter Kukielski Gonzalo Urquijo

Flat AmericasLouis Schorsch

6

Gerson A. Menezes

Central & SouthAugusto Espeschit

MexicoBill Chisholm

NorthP. S. Venkat

Controlling & Cont. Impr.Marc Ruppert

Engineering Proj.Paulo Salomão

ITNewton Lima

Louis Schorsch

Human ResourcesVanderlei Schiller

BrazilBenjamin Baptista

USAMike Rippey

CanadaJuergen Schachler

FinanceVaidya Sethuraman

Business OptimizationJim Ray

Government RelationsNeil Messick

Communications and CRBill Steers

Human ResourcesDale Laidlaw

MexicoBill Chisholm

EngineeringBill Ball

CCWest

Steelton

Indiana Bar

Georgetown

Vinton

LaPlace

CCEast

LongsMexico

LCNARegion/Facility

Steel plants Crude Steel Capacity

(ktpy)

Main rolled products

LCNA • Contrecoeur East• Contrecoeur West• Steelton• Indiana Bar• Georgetown• LaPlace•

• 1700 (with slabs)• 600• 600• 600• 500 (idled)• 600•

• Wire Rod, MBQ• SBQ, Rebar• Rails• SBQ, Wire Rod• Wire Rod• MBQ•

Long Carbon AmericasSteel Facilities

7

Point Lisas

Costa Rica

Acindar Villa Constitución

Piracicaba

Juiz de Fora

Monlevade

Cariacica

LZC

Córdoba LCCSA

• Vinton • 250 • Rebar

Longs Mexico

• Lázaro Cárdenas• Córdoba

• 2000• 100 (idled)

• Rebar, Wire Rod• Rebar

LCCSA • Point Lisas• Acindar VC• Monlevade• Juiz de Fora• Piracicaba• Cariacica

• 900• 1700• 1200• 1000• 1000• 600

• Wire Rod• Rebar, Wire Rod, SBQ• Wire Rod• Rebar, Wire Rod• Rebar• MBQ

LCA 15 steel plants 13,350 Mtpy --

Sparrows Point

• Products: • slabs, hot-rolled coil, cold-rolled coil, coated

steel products and plate. • Main customers:

• Distribution and processing, automotive, tubular products, construction, packaging, and appliances.

• Facilities:

Flat Carbon AmericasSteel Facilities

8

• Facilities: • Located at 8 integrated and mini-mill sites in 4

countries.• Operations

• Canada, the United States, Mexico and Brazil.

ArcelorMittal Brazil

9

ArcelorMittal BrazilStructure

CEO

Paulo Geraldo de SousaBenjamin M. Baptista Filho

Long Carbon Central and South America

Augusto Espechit de Almeida

Long Carbon Americas

Gerson Alves Menezes

Flat Carbon Americas

Louis Schorsch

Flat Carbon South America

Benjamin M. Baptista Filho

Flat Americas Long Americas

Board of Directors

10

Marcos A. MaiaAdilson Martinelli Vanderlei Schiller

VP ofFinance

VP ofControlling

VP ofHR & Institutional

Relations

Suzana Fagundes - GM

Legal Affairs

Wéllerson Ribeiro - GM

Purchasing Central and South America

• Quality• Leadership• Sustainability

Our values

Our vision

Our mission

•To be the most admired worldwide : “the reference in global steelmaking”.

•Establish a transparent and constructive dialogue t hat results in a favorable environment for ArcelorMittal Brasi l actions . Reflect the global positioning of ArcelorMittal Group (regarding its values and long term strategic guidance, sustainability and continued environmental and social performance). Contribute with

ArcelorMittal BrazilAligning Strategy

11

Transforming tomorrowOur strategy

Our philosophy

Our commitments

continued environmental and social performance). Contribute with the interaction between ArcelorMittal Brasil and society.

•Consolidate relevant markets.Industrial excellence and market leadership. Continue growth strategy.

•Safety above all.Multi-cultures and ethics. See beyond. Guided towards performance. Team work.

•Surpass the value creation expected by our sharehol ders.Generate value to our customers. Make our company an exciting place to work at.

ArcelorMittal Brazil Key figures

2008 2009

Net Sales(MUS$)

EBITDA(MUS$)

12,370 7,747

4,014 2,024

• More than 1,500 MUSD were returned to the

shareholder.

• Volume sold was 1% above the budget.

• EBITDA Long 19% above the budget mainly due to

input prices, management gains and fixed cost

reduction.

ArcelorMittal Brazil (Long plus Flat) key figures 2009 results summary

12

AM Brazil represented 35% of AM Group EBITDA and 1 2% of Net Revenues in 2009

OFCF(MUS$)

EBITDA Margin (%)

3,386 2,187

32 26

reduction.

• Good EBITDA margin even with the financial crisis.

� Brazilian economy is recovering faster than other economies and according to Economist Intelligence Unit (USA) will be the 6th economy in 2018 (GDP US$ 3,446 billions)

� It became 5th largest automobile producer , with up to US$11 billion investments announced for the next three/ four years, and targeting to reach 5 million units per year in 2014, 10% growth in 2010 forecast (3.5 millions units produced 2010). Export will increase 50% in 2010 reaching 750 mil units

� Big Projects announced for offshore Oil exploitation (Pre Salt), Iron Ore Mine expansion and Energy. Only 3 Hydroelectric plants in the North of Brazil (St. Antonio, Jirau and Belo Monte) means 300 kt of additional rebar consumption

Macroeconomic Vision Brazil

13

additional rebar consumption

� Construction is now getting US$ 14 billions in subsidy and US$ 30 billions of investments in affordable house project – “Minha casa, minha vida” targeting to reach 1 million affordable houses between 2010/2011

� A significant investment in Infrastructure with ongoing Government Development Program (PAC) US$ 150 billions budgeted for the next three years (US$ 36 billions for 2010)

� World Cup in 2014 with US$ 9 billion investments, being 2.4 US$ billions in stadiums, others US$ 6 billions of transports & urban infrastructure, and US$ 0.5 bi in hospitality. For the Olympic Games in 2016 is forecasted in addition 13.5 US$ billion on investments

� According to the Brazilian Steel Institute (IABr), it’s expected additional steel demand of 1.1 million tons/year during the period of 2010 – 2016 due to 2014 World Cup and 2016 Olympic Games

ArcelorMittal Long Carbon Brazil

14

ArcelorMittal Long Carbon BrazilSteel Plants

1.000

Crude Steel Capacity Ktpy

1.200

ArcelorMittal Monlevade

ArcelorMittal Juiz de Fora

15Total 3.850 ktpy600

ArcelorMittal Cariacica

1.050

ArcelorMittal Piracicaba

100

ArcelorMittal Sabará

ArcelorMittal Juiz de Fora

Capacity Ktpy

Drawn Bars

ArcelorMittal Long Carbon BrazilSteel Transformation Plants

16

240

100

ArcelorMittal São Paulo

Total 440 ktpy

Truss

Welded Mesh

Cold Deformed rebar

Annealed Wire

Nails

Tire Cord Shock Absorbers

Springs

ArcelorMittal Long Carbon BrazilMain Industrial Products & Applications

17

Merchant Bars

Cables

Fasteners (CHQ)

Welding

Steel WoolOffShore Piping

Rolled & Cold Drawing Bars

Rebars

Annealed Wires PrestressedCable for concrete Gabions

ArcelorMittal Long Carbon BrazilConstruction Products and Agribusiness

18

Belgo 60

Nails

Welded Meshes Trusses

Barbed WireGalvanized Wire

Downstream MarketSteelmakingUpstream

� Own iron ore mining

� Own forests

� Product mix in various market segments

� Direct service to

� Value added: drawn and transformed products for construction and

� Specialized mills

� Flexibility: Mini mills

ArcelorMittal Long Carbon BrazilPositioning in the Value Chain

19

� Own forests

� SOL coke plant

� Pig iron based on charcoal

� CO2 credits

� Scrap collecting and processing

� Own hydroelectric power unit (140 MW)

� Direct service to construction companies and industrial clients

construction and mechanical bars

� Strategic joint ventures for industrial wire production

� Multi-product distribution network

mills

� Lower-cost integrated mills for specialties

� Leading technology

� Growth potential

Long Carbon Brazil

Health and Safety Long Carbon Brazil

Health and Safety frequency rate – Employees (cumulative)*

Continuous effort to improve Health and Safety involving all levels participation:

• Corporate campaigns: Care with Hands, Accidents

during Carnival Holiday, Crushing, Dengue

Mosquito, Influenza A H1N1 and Behavioral

• JTZ - Journey to Zero with focus on elimination of

Fatality and Lost Time Injuries

• Health and Safety Day

20

0.901.04

1.70

2007 2008 2009

Frequency rate has been reducing year by year as re sult of a strong H&S Policy

* IISI-standard: Fr = Lost Time Injuries per 1.000.000 worked hours; based on own personnel

• Health and Safety Day

• Cross audits & Shop Floor Audits – SFA

• CIPA Meetings – Internal Commission for

Prevention of Accidents

• OHSAS 18001 certification/ recertification

• Safety Committee and Health Committee

integrating Long, Flat and Stainless

The corporate responsibility programs developedby the Long Carbon segment are developed inpartnership with local governments, in order topromote real transformations in the communitieswhere ArcelorMittal has industrial units. Here aresome 2009 highlights:• Over 770,000 beneficiaries

• 47 cities in Brazil benefited by ArcelorMittal’s programs

• Best results ever achieved in a V-day. 4,083 employees

of 11 Long Carbon units participated in the 2009 V-day,

Corporate Responsibility Long Carbon Brazil

21

The initiatives are developed to strength the relat ionship with the communities

benefiting 3,517 people, with their volunteer work.

• Two Annual Blood Donation Campaigns, involving 919

employees in 8 industrial plants.

• ArcelorMittal, through Fundação, sponsored 46 cultural projects. More than 200,000 were benefited, including 93 professionals that graduated in the art and culture postgraduation

• Fundação also launched the Welding City program in Juiz de Fora, that enables and qualifies youngsters to work as welders and blowtorch operators.

Seeing and living is one of the social programs developed in 2009. The initiative diagnoses visual acuity problems in public school children. At the end of the process, they receive free eyeglasses.

Carbon Projects �� Regulated and Voluntary Markets

Carbonization Project:

Forest Project (PPF):650.000 tCO2 / 5 years CDM

CDM

Estimated Register: 2011

Environment Long Carbon Brazil

22

Carbonization Project: 250.000 tCO2/ year

Industrial Project: 450.000 tCO2/ year

Blast Furnace Gas Project: 46.555 tCO2 years VCS

CDM

CDM




CDM – Clean Development MechanismVCS – Voluntary Carbon Standard

Environmental Management Systems (EMS)• ISO14000 in all plants

• Zero Industrial Effluents Discharge

• Water recirculation > 99%

• SAP Environment, Health & Safety Management

• Residues and By-Products Module implemented in Long Carbon Brazil and Acindar

• By-Products Sales, Marketing and Excellence (BSME)

• Long Carbon Brazil By-Products Sales: KR$ 21.519 (2009)

EAF Slag Model House

Environment Long Carbon Brazil

23

• Long Carbon Brazil By-Products Sales: KR$ 21.519 (2009)

• Non Recovered Residues Index (Kg/t crude steel): 11,75 (ArcelorMittal Monlevade)

AWARDS• AM Monlevade and AM Juiz de Fora recognized with

Environmental Management Award of Minas Gerais State

• “Prêmio Época de Mudanças Climáticas” – Época Magazine

• “Prêmio Dê Crédito ao Meio Ambiente” – Environment Ministry

and Industrial Magazine

Climate Change Award

ArcelorMittal Long Carbon Brazil Key Figures

26%

74%

Domestic

Exports

2009 Shipments

2008 2009

Steel Shipments(kt)

EBITDA(MUS$)

3,535 3,047

1,466 1,060

ArcelorMittal Long Carbon Brazil key figures

24

More than 30% of Market Share in Brazil

OFCF(MUS$)

EBITDA Margin Steel (%)

1,370 949

36 36

2009 Results

• Steel Shipments 4% above the budget

• EBITDA 248 MUS$ above the budget

• OFCF 24% above the budget

• Margin EBITDA was 6% higher than the budget

reaching 36%

ArcelorMittal Monlevade Overview

25

Crude Steel Capacity 1,200

Ktpy

Monlevade Plant is an integrated mill located in João Monlevade 120 km far from Belo Horizonte. The plant consists of:

- 1 sinter plant- 1 blast furnace- 2 converters (1 stand by)- 1 ladle furnace- 1 continuous casting machine (6 strands) - 2 rolling mills

ArcelorMittal Monlevade dedicated to production of high quality wire rod

Wire Rod ApplicationsSteel Cord / Bead Wire

Suspension Springs

Welding / Electrodes

Shock Absorbers

Petrol Exploitation

ArcelorMittal Monlevade

26

90% of AM Monlevade wire rod are destined to Specia l Applications

Wire Rope

Steel WoolCold Heading Quality

BLAST FURNACE1.120.000 tpy BOF LADLE

FURNACECONTINUOUS

CASTERROLLING MILLS

1.300.000 tpy

Forno Ignição

ar ar arar

SINTER PLANT1.750.000 tpy

Production flow and equipment

27

FURNACE CASTER 1.300.000 tpy

1.250.000 tpy

• Monlevade production flow allows production of specialties with low cost.

• Production of specialties with short route (billet casting) was developed by Monlevade team

1.750.000 tpy

Main drivers for AM Monlevade competitivenessIron ore mine

28

Andrade mine

• Iron ore mine situated close to Monlevade Steel Plant

• It is linked to the plant by it’s own rail road with 11 km

• It currently supplies the sinter plant with 1.5Mtpy of sinter-feed

• In the period of 2005 to 2009 it was leased by VALE

Main drivers for AM Monlevade competitivenessVertical integration with access to iron ore

29

• ArcelorMittal regained possession of the mine from VALE in Nov. 2009

• The current treatment of iron ore is crushing and screening of hematite in dry conditions

• Expansion project is on going for increase the production for 5.6Mtpy optimizing the reserves of itabirite and hematite

ArcelorMittal Monlevade is in close proximity to Andrade iron ore mine – only 11KM away

1) Characteristics• Hematite: iron content : >60%• Itabirite: iron content : 38 to 60%

2) Chemical composition of Andrade sinter-feed - aver ageItem Content (%)Fe 65.5SiO2 4.2P 0.042

3) Resources ( million tons )

Main drivers for AM Monlevade competitivenessIron ore mine

30

3) Resources ( million tons )

4) Logistics• Iron ore treatment facilities:

2.0 Million tons/year, considering 3 shifts working system• 11 km of exclusive railroad.

5) Current production level• 1.5 Million tons /year

HematiteItabirites

(*)Others Total

Total 94.8 Mt 318.3 Mt 13.1 Mt 426.2 Mt

ISO 9001:2000PMQ: Silver Level

BSC / Strategic MapPMQ: Gold Level

Learning Committees

Six SigmaVariability Reduction

PMGAePNQ

CSRNational

Sustainability Award

Main drivers for AM Monlevade competitivenessManagement System

31

1988

Management System TQC

1990

Daily Routine Management GRD

1992

Management by Policies

2000

Six SigmaTraining

2002

PGQESupplier / Community

2003 2004 20051993

ISO 9002/

PQTO

(CEDAC room)

1997

GRD Audit

1999

ISO 14001

OHSAS

18001

2001

Reduction

2006 2007

Vincent Gaeremynck

Award: Bekaert prize Best worldwide supplier

2001

National Quality

Award

2006

IMP

RO

VE

ME

NT

CY

CLE

(IM

PR

OV

EM

EN

T &

INN

OV

ATIO

N)

STRATEGIC POLICIES

DDPPAA

CORRECTIVE ACTION(Three Generation Report)

TARGETS & PROJECTS

CCSTANDARDIZATION

PROBLEM IDENTIFICATION TO ACTION PLAN


32

IMP

RO

VE

ME

NT

CY

CLE

(IM

PR

OV

EM

EN

T &

INN

OV

ATIO

N)

STA

ND

AR

DIZ

ATIO

N C

YC

LE

(DA

ILY

RO

UT

INE

WO

RK

)

PROJECTS EXECUTIONDDASSESSMENT

MEETINGS

DD WORK EXECUTION AND TRAINING

AAABNORMALITY ANALYSIS

SSSTANDARDS

CONTROL ITEMS

CCFOLLOW-UP & AUDITS

CCTechnical Committee

SHAKEDOWN(Chronic Problems)

Solution on more skilled level• Technical Knowledge• Method - Black and Green Belts


General Manager ArcelorMittal Monlevade

WIRE ROD COSTREBLOW INDEX / REBLOW INDEX /

shiftshift

Steelmaking

Manager

Steelmaking

Sector Manager

Foremen / Workers

(Daily / Shift / Heat)

GMB

LCA

LCCSA

ArcelorMittal Brazil(Long Steel)

33

WIRE ROD WIRE ROD

OUTPUTOUTPUT

MANAGEMENT GAINS

BILLET BILLET

PRODUCTIONPRODUCTION

BILLET BILLET

PRODUCTIONPRODUCTION

TAPTAP--TOTO--TAPTAP

UTILIZATION UTILIZATION

RATERATE

BREAKOUT BREAKOUT

INDEXINDEX

TAPTAP--TOTO--TAP / shiftTAP / shift

# BREAKOUTS/ # BREAKOUTS/

shiftshift

# STRAND FAILURE # STRAND FAILURE

/ shift/ shift

CAST SPEED CAST SPEED

REDUCTION / shiftREDUCTION / shift

GENERAL ADMIN. EXPENSES

AVERAGE WEIGHT AVERAGE WEIGHT

PER HEAT / shiftPER HEAT / shiftCatch ball

Catch ball

EBITDAEBITDA

SAFETY

SG&A

OFCF

Catch ball

Main drivers for AM Monlevade competitivenessPeople

5665

78

94 97 97 98 99

Employees Qualification Secondary School or Higher - %

Management / Academic Qualifications

• MBA ------------------------------------------ 17

• Graduated with Specialization --------- 59

• Master of Science ------------------------ 36

34

2002 2003 2004 2005 2006 2007 2008 2009

Six Sigma Background

• Black Belts (Engineers): ----------------- 74

• Green Belts (Technicians): -------------138

Main Programs:- Technical Level Graduation Program (metallurgy, mechanic and electricity)

- Plant Training Program (On the Job, Safety, Operational Procedures, etc)

- Post Graduation Program

- ArcelorMittal University Program (Management)

� Breakfast with Workers, Integration Games, Summer Camping for Workers’ Children and Employees’ Families Visits

� Administrative Meetings, Three-level Meetings, Communication Chain, Organization Morale Survey and Union Relationship Program

Integration

Recognition

Communication

Main drivers for AM Monlevade competitivenessPeople

35

Recognition� Safety, Operational and Technical/Administrative Merit Awards; Rewarding

Program for Workers’ Suggestions: CEDAC and Nota 10; 20 Years of Work Award (“Velha-Guarda” Watch) and Employee of the Year

CSR – Corporate Social Responsibility� Volunteering Program,Environmental Educational Programs, Tomorrow's Citizens,

Town Economical Development Support, Job and Revenue Generation Program, Cultural Programs, Learning Quality Program and Support for Co-Contractors Corporate Social Responsibility

Performance Highlights

36

Safety frequency rate: Own and Co-contractors

4.83

3.15

1.49

2.40

0.82

1.51 1.42

0.901.31

0.27

0.23

0.150.17

0.09 0.090.06

0.09

Safety

Safety severity rate: Own and Co-contractors

37

0.82 0.90

2002 2003 2004 2005 2006 2007 2008 2009 2010

0.040.06

2002 2003 2004 2005 2006 2007 2008 2009 2010

Main Programs� By-example Leadership� Safety risk agents program � Special Safety training program for Supervisors� Cross-check auditing (LCCSA inter-units) � Safety Minute� Safety Patrol

ytd ytd

HPS

Sinter Hot Metal

Production (Ktpy)

1,700

1,383

1,580 1,613 1,666 1,671 1,6541,592 1,076971 1,003

1,091 1,102 1,1039851,008

38

Billets Wire Rod

2002 2003 2004 2005 2006 2007 2008 2009 2002 2003 2004 2005 2006 2007 2008 2009

1,2111,113 1,127

1,233 1,218 1,213

1,0841,119

2002 2003 2004 2005 2006 2007 2008 2009

1,1801,135 1,0731,200 1,153 1,141

1,0631,130

2002 2003 2004 2005 2006 2007 2008 2009

Operational excellence

Coke Rate

kg/to

n

387 373404

341 341 346385

325

335354

t/m2 .

day

35.6

40.539.839.539.9

38.938.9

41.039.7

HPS

With HPS (Hybrid Pelletized Sintering) Andrade Mine sinter feed utilization was increased from 49 to 100%

Sinter Plant Productivity

39

97.78 97.83 97.83 97.77 97.88 97.87 97.88 97.8797.81

2002 2003 2004 2005 2006 2007 2008 2009 2010

90.2

82.281.790.190.8

86.186.2

91.2 90.2

2002 2003 2004 2005 2006 2007 2008 2009 2010

Utilization Rate - Caster (Calendar Time)

%

2001 2002 2003 2004 2005 2006 2007 2008 2009 20102002 2003 2004 2005 2006 2007 2008 2009 2010

%

ytd

ytd

ytd

ytd

Metallic Yield

Water Recirculation & Consumption

� Eliminating the industrial effluents discharge

� Water Tanks building

� Optimize pumps concerning leakage and capacity

� Review concepts concerning operational procedures

� Review equipments automation

91.196.8 98.4 98.8 99.0 98.9 98.7 98.9 98.2 98.4 98.8

2.4

18.26.4 3.6 3.1 1.8 2.0 2.0 2.1 3.0

Environment

40

42.0 39.0 37.0

15.0 13.0 11.8 11.811.7

58.0

2002 2003 2004 2005 2006 2007 2008 2009 2010

� Review equipments automation

� Channels Interconnection

Non-Recoverable Residues Index (kg/t)� Environmental Management System

� Use of Rolling Mills and Caster Scales (Sinter Plant)

� Use of lime fines (Sinter Plant)

� Use of Dedusting powders (Sinter Plant)

� Sell of Blast furnace Slag (Cement Companies)

� Transform Steelshop Mud in Briquettes (SteelShop)

� Use of Rolling Mills Mud (Sinter Plant)

� Destination of all the oily residues (Cement companies)

� R&D - New applications (Steelshop Slag – Road / Railway)

2.43.6 3.1 1.8 2.0 2.0 2.1 3.0 2.1

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Recirculation Rate (%) Water Consumption (m3/t crude steel) ytd

ytd

ArcelorMittal Monlevade Expansion Project

41

Coil Market* Sales x Capacity(Monlevade Expansion)

3250

2100

1.5002.0002.5003.0003.5004.000

ktIn order to meet market demand, ArcelorMittal will invest

ArcelorMittal Monlevade expansion (Mt) Monlevade expansion is being reinitiated and scope is under review

�Following the growth of the ArcelorMittal Brazil long

market and maintaining market share�Taking advantage of Monlevade highly competitive

cost and quality and leverage low cost Andrade mine

located nearby

42

-500

1.000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Year

Sales Monlevade Exp Capacity

Reinitiating growth plan to capture market growth

located nearby

Further project understudy

�Step 2: Cariacica and Juiz de Fora: increase 1.4 million

tons per year of Rebar, Structural Sections and SBQ

Capacity constraint in Brazil to be tackled by resuming investments in Monlevade

Production (ktpy)

Sinter Plant Blast Furnace Steelmaking Rolling Mills

SIM

ULT

AN

EO

US

B

LOW

ING

1,750 1,120 1,2001,150

WR #2

WR #1

EXPANSION

EXISTING

Monlevade Plant Flow – After Expansion

BOF LF CCM

43

2,240 2,400 2,3004,050

SIM

ULT

AN

EO

US

B

LOW

ING

Forno Ignição

ar ar arar

2,300 1,120 1,200

TOTAL

Rationale of the projects:�Sustain AM’s market share in the region�Take advantage of the Monlevade competitive production cost, high quality products and leverage low cost iron mine;�Brazilian economy is estimated to become the 6th largest economy in 2018; �Increase in steel consumption resulting from large projects : offshore oil exploitation, iron ore mining, power generation, infrastructure development, preparation for the World cup football competition in 2014 and Olympic games in 2016.

1,150

Q&A

44

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