General Presentation – ArcelorMittal

Corporate Communications
Transforming Tomorrow
July 2007
 Leading position in the most
attractive markets
Market position and market share estimates by region*

No 1 in No 1 in Eastern
No 1 in Europe and CIS
Western Europe
North America
11%
26%
23%

74% 89%
77%

No 1 in No 1 in Africa
South America

24% 53% 47%

76%

Number 1 in 5 regions and 4 continents

ArcelorMittal 2
*Source ArcelorMittal estimates based on IISI crude steel production
Other
The ArcelorMittal Merger
• Strong industrial logic – spurring consolidation in a fragmented industry
• Unrivalled geographic footprint
• Leadership in technologically advanced products
• Leading position in developed markets in Europe and in North America
• Leading position in developing markets in Eastern Europe and CIS, South
America and Africa
• Expanding low cost production base for sustainable profitability
• Unparalleled access to new high-growth markets
• High level of vertical integration
• Unmatched financial flexibility – strong through-the-cycle cash flow
generation
3
Not only leading the steel industry
but the Metals & Mining sector
Crude Steel production in 2006 (Mt)* Turnover in 2006 (USD billion)

140 100
118 89
120
80
100

80 60

60
40 32 32
40 34 32 31 22 21
23
20
20

0 0
l **
al ee E O en al a on nt
o
RD
it t t JF SC b itt co llit Ti
rM S An M Al i CV
lo on PO lor B
Ri
o
c e p p ce P
Ar Ni Ar BH

More than 3 times larger than next competitor

* Metal Bulletin 4
** Result from the merger between Ansteel and Bensteel.
Chinese and BRICET growth has led
to new demand dynamics

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

1400

+5-6%/y
1200

+1%/y
1000

800

600 +5%/y

400

200

0
19 19 19 19 19 20
50 60 70 80 90 00

*Source IISI 5
 US and European consolidation

NAFTA Europe**
Usinor
Ispat
US Steel Corus

Nucor Arbed

2000 Bethlehem
ThyssenKrupp

LTV Riva

ArcelorMittal
ArcelorMittal

2006*
Nucor
Tata-Corus

ThyssenKrupp
US Steel
AK Steel Gerdau Riva
VoestAlpine
6
*Arcelor Mittal based on IISI crude steel production data for 2005
** EU, CEE and Ukraine
 A sustainable margin improvement

HRC –South Europe domestic Ex- HRC – North America domestic FOB US
Works Euro/t* Midwest mill $/short ton*

550 800

500 700

450
600
400
500
350 OI C
ab le R IC
tain le RO
Sus 400 ab
300 t tain
h cos Sus ost
cas sh c
stry 300 ca
250 Indu stry
Indu

200 200
8 8 9 9 0 0 1 1 2 2 3 3 4 4 5 5 6 6 7
98 98 99 99 00 00 01 01 02 02 03 03 04 04 05 05 06 06 07 -9 ct-9 r-9 ct-9 r-0 ct-0 r-0 ct-0 r-0 ct-0 r-0 ct-0 r-0 ct-0 r-0 ct-0 r-0 ct-0 r-0
r- ct- pr- ct- pr- ct- pr- ct- pr - ct- pr- ct- pr- ct- pr- ct- pr- ct- pr- r
p
A O A O A O A O A O A O A O A O A O A Ap O Ap O Ap O Ap O Ap O Ap O Ap O Ap O Ap O Ap

*Source SBB

7
The organisation

8
The Overall Organisation
The structure, the team, the budgets, the goals – the platform is now in place to
ensure a successful integration of ArcelorMittal as the world’s number one steel
maker.

The management structure for the combined Group is designed to create an

organisation that combines scale with agility and provides a new industry
benchmark for customer service.

The new organisation reflects a balance of appointments from each of the

predecessor companies. At the very top of the organisation is an 18-member
Board of Directors. Representing all stakeholders, the Board of Directors is
responsible for the overall supervision of the Company. It is truly international in
character as benefits a multinational Group.

Among the Board’s roles is the appointment of the Group Management Board
(GMB), which manages the strategic direction of the business.
9
The Group Management Board
The ArcelorMittal Group Management Board

• Lakshmi Mittal President & CEO, Responsible for Shared Services (Purchasing, Legal, IT, other
activities), Human Resources, Marketing and Commercial Coordination, Associations,
mandates and steel contact groups, International Affairs, Internal Assurance and GMB
Secretary
• Aditya Mittal CFO, Responsible for M&A, Flat Americas, Strategy and Communications
• Malay Mukherjee CTO, Responsible for Mines, Africa, Asia, China, South Europe (Bosnia,
Macedonia), CIS (Ukraine, Kazakhstan), Stainless Steel and Pipes and Tubes
• Gonzalo Urquijo Responsible AM3S,Long EU27, Long Americas, Wire Drawing, CSR and ArcelorMittal
Foundation
• Michel Wurth Responsible Flat EU27, Product Development and R&D, Global Customers,
Automotive, Plates and Packaging

All GMB members also sit on a strong Management Committee – all of whom hold at least the position
of Executive Vice-President. The Management Committee’s roles are to:
• Discuss and prepare Group decisions on matters involving different segments of the business
• Manage the Group’s geographical integration
• Ensure in-depth discussions with ArcelorMittal operational and resource leaders
• Share information about the situation of the Group and its environments

10
ArcelorMittal Principles

• To be the world's most admired steel company:

Our Vision “the reference in the global steel industry”

• To achieve unrivalled leadership

Our Mission • To achieve critical mass

Integration principles consistent with

the ArcelorMittal Vision
• Consolidate relevant markets
• Value creation driven
Our Strategy • Industrial excellence and market leadership
• Fast and sustainable
• Continue growth strategy
• Best of both or best
practice
• Safety first • Accountability
• Multicultural and ethical
Our Philosophy
• Forward looking
• Performance oriented
• Aiming at speed and sustainability
• Team work

• Exceed the value creation expected by our

shareholders
Our Commitments • Generate value for our customers
11
• Make it an exciting company to work for
A unique leader with strong financials

12
Financial Snapshot of ArcelorMittal
2006 Realised 2007 Budget
USD USD

Revenues $ 88.6 billion $ 92.7 billion

EBITDA $ 15.3 billion $ 16.8 billion

Net Income $ 8.0 billion $ 8.0 billion

Shipments 110.5 million MT 114.0 million MT

Net Debt $ 20.4 billion $ 14.9 billion

Employees 319,578

13
Source: ArcelorMittal Pro Forma figures for Earnings Release Q4 2006; BoD December budget presentation
 FY 2006 proforma* highlights

FY 2006 EBITDA** in line with guidance

- Negative impact from production cuts in the US and cost increases partially off-set by marginal
improvement in average prices and strong performance in stainless steel segment in Q4
- EBITDA in line with guidance at USD 4.1bn in Q4 and at USD 15.3bn in 2006

Net profit and EPS up in Q4

- Net income increased by 9% at USD 2.4bn and USD 1.72 per share in Q4 versus Q3

Strong net debt reduction in Q4 in line with group targets

- USD 4.3bn cash-flow generated from operations in Q4 due to solid operational performance and
good working capital management
- Net debt reduced by USD 2.3bn to USD 20.4bn, representing a NFD***/EBITDA of 1.3x
- Gearing reduced to 41% down from 48% in Q3

* In accordance with IFRS; Mittal Steel pro-forma reflects results of Arcelor including Dofasco/Sonasid 14
** EBITDA = Operating Income + Depreciation
*** NFD=Net Financial Debt
 Guidance for Q2 2007
Expectation for 2nd quarter 2007 versus 1st quarter 2007

- Total shipments expected to increase slightly due to good market conditions and expansion

- Flat Carbon Americas profit to increase

- Long Carbon profit to continue to rise due to strong market conditions

- Asia, Africa & CIS profit to increase due to strong volume

- Flat Carbon Europe performance expected to remain stable

- AM3S’ profitability expected to remain stable

- Stainless Steel profitability to decline due to deteriorating market

- Tax rate of approximately 25% for the year

EBITDA expected to increase in Q2*

15
* No quantitative EBITDA guidance is provided due to the pending regulatory filings in
connection with the Mittal Steel/Arcelor merger process
Finance – Milestones and Vision
Milestones:
1. Seamless integration of the two finance functions
– New finance organisation would retain talents from two world class organisations
to create a ‘Best in Class’ function
2. Harmonisation of systems and procedures
– Internal reporting, Purchase Accounting, Budget 2007, Business plan 2007-2009
and Capital allocation criteria
– SOX 404 Implementation
3. Instituting a systematic process of skill development/enhancement and knowledge
management

Vision:
Finance function must be a true business partner
• Generates and disburses information which is relevant to and supports business
decision making
• Provides financial solutions which add value to the business
• Helps build a more performance oriented culture, by making each one of us a better
decision maker 16
ArcelorMittal Business Segments

17
Milestones and Vision through
ArcelorMittal Business Segments
• Flat Americas
• Flat-rolled Americas

• Flat Europe
• ArcelorMittal Automotive
• Plates

• Long Carbon Europe

• Long Carbon Americas

• Wire Drawing

• Asia, Africa and CIS

• Mining Assets, Stainless, Pipes & Tubes

• R&D
18
Flat Americas: Past and Future
• Vision To be the most admired steel
company in the Americas – with the
strongest brand, the best financial results,
and the safest, most energized employees

• History 11 predecessor companies • Key facilities

constitute ArcelorMittal FR Americas – CST: 5.5 MT integrated plant, being expanded
(Sicartsa II, Imexsa, Sidbec, Inland, CST, to 7.5 MT, HSM and link to Vega do Sul
LTV, Bethlehem, Acme, Weirton, – Lazaro Cardenas: 3.5 MT DRI-based slab
Georgetown, ISG) facility, with IF and API capability
– Indiana Harbor: 9 MT, largest plant in the
Americas, with high value-added mix and NSC
• Capacities jv
(million T) * – Burns Harbor: 5 MT integrated plant, good
layout, low cost, full range of sheet products
Slabs 35 plus plate
– Cleveland: 3 MT integrated plant, pioneering
Plate 2 labor contract, new auto-capable galvanizing
line
Hot band 30 – Sparrows Point, 3.2 MT tidewater integrated
plant, large BF, new CDCM, large coating
CR 19 capacity
– Coatesville: 900 kt specialty plate operation
Coating 13
19
* Includes Dofasco
 A rich product Mix in a wide range of
markets*
Product mix (total - 27 million T) (in %) Markets (in %)

Tin-mill Appliance
products Packaging and other
Plate
Construction
4 4 2
7 6
Hot-rolled
Galvanized and 30 Pipe and
tube
aluminized sheet 19 15
Distribution and
50
processing

20 20 23
Automotive
Cold-rolled Slabs

– 4 of 4 hot-strip mills in North America using 100% walking-beam technology **

– 5 of 6 continuous cold mills in the Americas **
– 3 of 3 automotive CA lines in the Americas
– Largest supplier of high-strength steels in the Americas

20
* 2006 Estimates,
** Includes Dofasco
Flat-Rolled Americas:
organisation and key challenges
Simplified organisation Key challenges

• Short term
Head – Finalise organisation and leadership
Flat Americas – Initiate integration and synergy capture (with
corporate, with European FR, within the Americas,
with LP in shared services)
Operations: – Optimise commercial coordination of slab sales and
• USA imports to NAFTA
• – Develop 3-yr perspective on strategic opportunities
Brazil
(markets, products, synergies, growth, investment)
• Mexico
and build into 2007 plan
• Canada
• Medium and long-term
• Regional functions, – Boost cost competitiveness in USA and Canada
strategic: – Capture growth opportunities in Brasil and Mexico
– Technology
– Optimise investments: leverage both Southern cost
– HR/LR position and Northern market position
– Business
Development
– Communications
– Financial Analysis
– Legal/Government
Affairs

21
Flat Europe: Sites

Over 43 MT
of installed slab capacity

• Upstream facilities (slab capacity)

Asturias 4.2 MT
Bremen 3.9 MT
Dabrowa* (3.0 MT)
Dunkerque 6.7 MT
Eisenhüttenstadt 2.4 MT
Florange 2.5 MT
Fos-sur-Mer 4.8 MT
Galati 4.5 MT
Gent 5.0 MT
Krakow 2.0 MT
Liège 1.8 MT
Ostrava 1.1 MT
Sestao** 1.7 MT

22
* 3.0 MT coming online in 2007
** CSP technology
Flat Europe: Organisation and
key challenges
Simplified organisation Key challenges
• Short term
– Harmonise commercial policies
Head Flat
– Adapt to anticipated market slowdown in Q1
Europe 2007
– Organise exchange of best practices
and integration
Client Value
Function – Define and implement synergy and
management gains potential
• Medium and Long term
Western
– Review Apollo in light of enlarged scope
Europe
– Optimise investments in Europe
– Restore Packaging profitability
Upstream
– Strengthen leadership position in Central
Facilities Europe and Germany
– Develop our presence in the Black Sea basin
One
Downstream

Eastern Europe

23
 ArcelorMittal Automotive
Market share of ArcelorMittal Deliveries to the automotive industry
Automotive by region MT (2005)

100 100 100 17.4

53
72 64

5.8
4.8
47 4.1 4.0
28 36 2.6 2.0

Mercosur North Europe +

Turkey ArcelorMittal NSC US Steel TKS JFE Posco Sever-
America stal

Global market share of 26 % By far the largest producer of steel for the automotive
Global market share in coated products: 35 % industry with 17.4 MT (2005)
No 1 supplier in Europe and NAFTA of Producer with the broadest product portfolio and the
Ford DaimlerChrysler highest quality
General Motors Honda
Renault/Nissan Toyota

24
Note: Figures include Dofasco
 ArcelorMittal Automotive
Simplified organization Key challenges

• Harmonize commercial policies and client support

• Build a truly global organization to serve global
Head
customers
Automotive
• Maintain (expand) current market shares at our
clients and grow in emerging markets

Europe

NAFTA

Key success factors

• Within these organizations, only 1 key account
manager per global customer
• Global Steel Alliance with Nippon Steel to be
continued
• Product development, innovation, quality
• Relentless customer focus with a unique and
dedicated client team
• A solid value creation proposal to our clients by
being involved in all stages of vehicle
design/production

25
 Plates
Simplified organisation
• Plate mills in
– Burns Harbor (US)
– Galati (Romania)
Head Plates
– Gijon (Spain)
– Batory (Poland) 4.3 MT

– Vanderbijlpark (SA)
• Specialty Plates
– Industeel Belgium
– Industeel France
– Coatesville
Key challenges
– Conshohocken
1.3 MT
• DHS
(associated, held at 51%)
Standard
Specialties DHS
Plates
• Define and implement synergies
• Organize exchange of best practices and integration
• Continue to develop global leadership in niche
products
• Coordinate and expand plate sales worldwide to
become a global player
• Cooperation with DHS

2.3 MT

26
 Long Carbon Europe
Long Carbon Shipments EBITDA
Europe KT MUSD

Sections, 6,632 488

incl. RPS

Wire rod 3,863 269

Bars/rebars 3,039 72

Billets/blooms 2,500 112

LCE 2005 16,034 941*

LCE 2006 16,239 1,908

• Over 24,500 FTE

• 20 sites located in 8 countries, Poland, Romania, Czech
Rep., Luxembourg, France, Germany ,Spain and Italy

27
2005 Ebitda converted in USD with 2005 average rate of 1.2443
 Long Carbon Europe
Key challenges
Long Carbon
Europe

• Safety
Strategy / • Remedies
RPS
Controlling – Stahlwerke Thüringen
– Pallanzeno
– Huta Bankowa
Sections • Synergies & Integration
– Sales & Marketing: consolidate network; Logistics
savings on optimising sales flows, harmonise
Bars commercial policies & prices
– Purchasing: consolidate scrap purchasing, optimize
flow of raw materials
– Operations: exchange of best practices; optimisation
Wire Rod
of capacity; benchmarking
– Investment Plan review & optimisation

Commercial
Wire Rod

Commercial
Sections
28
 Long Carbon Americas
Long Carbon Shipments EBITDA
Americas KT MUSD

2005
Ex-Arcelor 3,580 699
Ex-Mittal 4,611 296

LCA 2005 8,191 995*

LCA 2006 8,473 1,394

• Over 15,000 FTE

• 14 sites located in 6 countries:
USA, Canada, Brazil, Argentina, Trinidad-Tobago and Costa
Rica

29
2005 Ebitda converted in USD with 2005 average rate of 1.2443
Long Carbon Americas
Key challenges
Long Carbon
Americas • Safety
• Synergies & Integration
– Sales & Marketing: align and coordinate commercial
USA and activities; consolidate network; Logistics savings on
Canada optimising sales flows, harmonise prices
– Operations: exchange of best practices;
benchmarking
Central – Investment Plan review
America – Optimisation of capacity expansion
– Growth
South
America

Business
Development

Commercial
Coordination

Continuous
Improvement
30
Wire Drawing

• 1.9 million tons in total with an EBITDA of about 270 MUSD:

– Low to High Carbon Europe & Canada
– Wire Operations in South-America, JV with Bekaert
– Steelcord worldwide, JVs with Kiswire in Asia and SeverStal
• 42 plants and 8,600 employees
• Co-leader worldwide with Bekaert

Opportunities
• Unique position to serve global customers (auto, oil industry, etc.)
• Optimisation of capacity utilization worldwide
• Pilot wire drawing consolidation in a 20MT industry
• Development in Eastern Europe and Asia

31
 ArcelorMittal Steel Solutions &
Services (AM3S)
• Over 300 companies established in 32
countries:
– Adding value to steel
– Customer focused
– Managed by entrepreneurs
• Priorities:
– Partnership with Flat and Long
– Anticipate customer developments
– Focus development on best value
creation potential
Distribution Steel Service Centres
• AM3S European integration
– Accelerate Central and Eastern Europe deployment
– Action plan shared between mills and AM3S
• ArcelorMittal International Network
– Total of 12 MT – 15MT of sales for ArcelorMittal International
– Key principles
• Mills to organise sales on domestic markets
• AMI to deal outside domestic markets
Construction Projects International
32
 Mining assets, synergies and key
challenges
Assets Synergies
Production Resources • Worldwide operations and harmonised regional
MT MT synergies across steel plants and mines.

Canada Iron Ore 14.5 653 • Supply reliability and freight advantages.

USA Iron Ore 8.2 500

USA Iron Ore** 13
Mexico Iron Ore* 2.25 250
Brazil Iron Ore* 1.5
Algeria Iron Ore 2 100 Key challenges
Bosnia Iron Ore 1.5 100
• Some of our resources are leaner in grade which
Ukraine Iron Ore 9.4 1,000 require specialised enrichment technologies.
Kazakhstan Iron Ore 6 2,300 • Upcoming mining projects are located in developing
Kazakhstan Coal 5.5 1,500 countries and constrained with infrastructures and
logistics. These constraints may adversely affect
South Africa Iron Ore** 10.2 project execution schedule.
Liberia Iron Ore*** 1,000
Senegal Iron Ore potential acquisition
2006 Forecasts Million tons
Iron ore captive production 55.6

Iron ore own Resources 5,903

33
* Share of production
** Strategic contract at cost plus Coal captive production 5.5
*** Under development
 Stainless Steel: Integration and
key challenges

• Most synergies are inside Stainless Steel between the European and
Brazilian part (purchasing, common international distribution,
Synergies
industrial best practices, common market development…)
• With Carbon: mainly common use of Carlam toll rolling, purchasing
mainly energy and scrap purchase and R&D

• Foster stainless high margin products (in particular ferritics)

Key challenges • Conquer market share through integrated distribution and capture
growth in our nearby export markets: East of Europe, Russia, Middle
East, South America
• Ensure debottlenecking and capacity increase of equipments (namely
Carinox meltshop) in order to have the capacity to fulfil our
commercial ambition with most of our existing equipments

34
 Pipes and Tubes Assets,
synergies and key challenges
Assets Synergies
Small Large • Technical knowledge integration
diameter diameter • Global distribution set up can help in exploring new
welded Welded Seamless markets
capacity capacity capacity
KT KT KT Key challenges
Contrecoeur, Canada 130 • Quality up gradation across most of the mills
Annaba, Algeria 90 • Investments for modernisation of key assets and
Ostrava, Czech 328 328 capacity balancing
Karvina, Czech 170 • Manpower rationalisation/ Fixed cost reduction
Krakow, Poland 250 • Development of value added products (premium
connections for OCTG, enhancement of threading
Temirtau, Kazakhstan 80
and heat treatment capacity, X60 and above API
Aktau, Kazakhstan 60 Line Pipes in large OD)
Iasi, Romania 350 • Availability of Quality Steel
Roman, Romania 480 • Moving closer to end users (Oil & Gas Majors) and
Galati, Romania 50 prequalification of mills
Vereeniging, SA 105 • Development of regional sales offices
• Organic and inorganic growth in P&T business

P&T 2005 2006

Shipments KT 978 1262
Ebitda MUSD 170 229 35
 Asia, Africa & CIS
Middle East and India
South East Asia and Australia
Mediterranean and Black Sea basin
China and Kazakhstan
Central and South Africa
Temirtau (6.0)
Kryviy Rih (6.9) Kazakhstan
Ukraine

Skopje (0.8)
Macedonia Laiwu* (7.0)
China
Zenica (1.9)
Bosnia
Hunan Valin** (7.7)
China
Sonasid (1.0)
Morocco
Annaba (2.2) Shipments : 17.8 MT
EBIDTA : 2.786 bn $
Algeria

Vanderbijlpark (6.0)
South Africa Newcastle (2.4) Flat
Saldanha (1.2) South Africa Long
South Africa Vereeniging (0.4)
( ) Melt shop capacity
36
South Africa
* Target 38% owned (not yet approved) (Mtpy)
** 27.2% owned
 Integration and key challenges
Carbon Steel

• Consolidate and integrate the geographical basins commercially by

Synergies eliminating traders and harmonise sales prices
– Black Sea/Mediterranean Sea/Caspian Sea
– China/Kazakhstan/South Africa
• Capture synergies (purchasing, sales forces, know-how)
• Accompany high growth of African/Asian markets by expanding
capacity and increasing quality
Key challenges
• Increase productivity
• Determine optimal CAPEX program to implement industrial and
commercial ambitions
• Integrate quickly and efficiently with in-house distribution network

37
 R&D
Key facts Key challenges

• Total budget of 185 M€ • Develop R&D as a tool for long term competitive
advantage
• More than 1,200 researchers
• Support the transfer of technology between plants
• 13 major research centers (in Europe, in the US
• Increase the innovation level and decrease the
and Canada)
time to market for new products
• Split of research expenditures (in % - budget 2006)
– Include products as well as process research • Move from an European based international
configuration towards a global R&D and innovation
organization
• Process and Product R&D
Plates Other • Redefine alliance with Nippon Steel
Long Carbon
1
Stainless 6 5
7

81 Flat Carbon

38
The integration

39
Integration process: Maximising an
outstanding merger
• Global scale of the combined entities (USD 80 bn revenues, 320,000 employees, industrial
presence in 27 countries across Europe, the Americas, Asia, and Africa)
Capturing integration benefits is one of our three priorities for 2007/8 (secure and manage
day to day business, growth and consolidation)

Needed to achieve:
– At least USD 1.6 billion in synergies
– Strategic alignment
– New reference for organization and key management processes

• Significant synergies – balanced origin totaling USD 1.6 bn recurring EBITDA gains by 2008

Marketing and
trading 28% 37%
Manufacturing and
process optimization

35%

Purchasing
and SG&A
• High speed of integration - Phase One completed in six months

40
Continuous Improvement in
Health and Safety
Group frequency rate* Main Action Lines

• New Arcelor Mittal H&S policy deployed

4.1
3.9 • Analysis of fatalities and Return on
3.8
3.7 experience (REX) leads to a specific
3.4 measures at group level
– Prevention campaign on falls and
T a rg e t crushes
2007:
3 .2
– Training kits for new constructions
– Internal Audits
– Support from Corporate in terms of
best practices sharing and plants
twinning
• March 6, 2007: Global H&S Day
• Group Management Board hearing after
each fatality or severe accident
Q1 06 Q2 06 Q3 06 Q4 06 Q1 07
• Performance assessed quarterly by
management

Health and Safety progress on track on target

IISI-standard: Fr = Lost Time Injuries per 1,000,000 worked hours 41

 Integration completed at 80%
2006 2007 2008

Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4

Integration Ramp-down Integration Integration 80%

Integration Office Follow-up Office: integration fully completed
process In place tool inside businesses
in place

Leadership
HR and N-2 N-3 New Integrated competency
organization Organisation Organisation GEDP EWC framework for
announced announced installed Top
Management

Internal
Internet site Worldwide
roadshows Brand
Communication launched WebTV H&S Day
Launch
launched
Media Day

Top-down Bottom-up Synergies

Target
targets issued targets incorporated in
realisation
2007 budget
confirmed

Execute integration fully inside

Get organised Launch
businesses and transversal entities
42
Brand launch on 1st June 2007
• Positioning which not only reflects the strategy
of the business but also reflects the
responsibility we have as the leading player
• Finalising commercial unity: “one face to
customer”
• Important part of the integration process, in
that it creates a common bond for all of our
employees and a clear set of values which we
intend to be visible in the company at all times
Global advertising campaign
transforming tomorrow
ArcelorMittal brand values
Sustainability
We are guiding the evolution of steel to secure the best
future for the industry and for generations to come.
Our commitment to the world around us extends beyond the
bottom line, to include the people in which we invest and the
communities we support. This long-term approach is central
to our business philosophy.
Quality
We look beyond today to envision the steel of tomorrow.
Because quality outcomes depend on quality people, we
seek to attract and nurture the best people to deliver
superior solutions to our customers.
Leadership
We are visionary thinkers, creating opportunities every day.
This entrepreneurial spirit brought us to the forefront of the
steel industry. We are moving beyond what the world
expects of steel.
43
Synergies delivered as plan

ArcelorMittal annualised synergies

SG&A and other
Manufacturing & Process Optimisation Marketing & Trading
Purchasing 830 - Positive impact of harmonised and improved pricing through
Marketing & Trading
higher service levels and quality to customers expected to
continue to deliver in Q2 2007
Purchasing
- As planned, renegotiation and global sourcing synergies
573
expected to have significant impact in Q2 2007 and to deliver
further in Q3 2007. Main gains generated by price
improvement, products flows and mix optimisation in raw
materials and industrial products and services
269
Manufacturing & Process optimisation
- Positive impact of input flow optimisation in Long Carbon
division captured earlier than expected. Best practise and
quality upgrade expected to begin showing significant results
in H2 2007 in other divisions
SG&A and other
Captured at 31/12/06 Captured at 31/03/07 Estimated at - Synergies expected to be captured progressively through 2007
30/06/07 and 2008

Higher synergies captured than expected in Q1 2007

44
ArcelorMittal - A unique profile and
strategy for transforming tomorrow

45
 A three dimension strategy

Value Chain - Product

ArcelorMittal is the only producer offering, leveraging and
developing the full range of steel products and services.
- From commodities to value added products, from long products to flat
products, from standard to speciality products, from carbon steel to stainless
steel and alloys…

ArcelorMittal - Value Chain

ArcelorMittal is not only a steel producer but an integrated Metals
and Mining leader capturing opportunities along the value chain
- From mining to distribution, transformation and trading of finished products…
G

t
eo

uc
g

- Geography
od
ra

Pr
ph

ArcelorMittal is the only truly global producer

y

- Leadership position in 4 continents and 6 regions: North America, South

America, West Europe, Central & East Europe, Africa and CIS & Central Asia

Not only the largest steel producer in the world but a unique Metals & Mining leader

46
A strategy for reduced risk and
continued growth
Sustainable profitability and
reduced risk
– Leadership and size
Cost reduction potential, consolidation
impact…
– Low cost and low debt
Cash-flow generation
– Exposure to stable markets
Niche products, added value exposure
and long term contract, stable
Low economy…
risk – Portfolio diversification
Product, customer and geographical
diversification…
– Internal and external growth
Acquisition and M&A experience…
Value creative growth
– Leadership and size
Marketing, services, HR, R&D…
capabilities for market share gains
– Exposure to growth market and
capacity expansion in line with
market
BRICETS exposure
High – De-bottlenecking potential &
value added growth versus
greenfield
Growth Growth in low cost area…
– Growth along the value chain
Distribution, mining…
– Targeted acquisitions with high
synergies
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Demonstrating resilience to cycle and
on track to demonstrate growth

ArcelorMittal EBITDA pro-forma

EBITDA growth new dynamic from:

USD16bn USD14.9bn USD15.3bn
- Brownfield and Greenfield expansion
- Value added investment
- Mining and distribution growth
- Cost reduction and management gains
USD 4.3bn
- Merger synergies
- Targeted acquisition

2004 2005 2006 Q1 2007

HRC FOB US Midw est $/s.ton

Stability period Step change period

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Upstream and downstream integration
generating sustainable profit
Iron ore self sufficiently Steel Distribution Product sold through distribution (%
internal vs. external)

Distribution
through
Internal
AM3S
production
38%
and strategic
External contracts
Distribution
purchase 45%
through
55%
external
Distributors
and Steel
center
62%

Iron ore price expected to remain AM3S (ArcelorMittal Steel

high on the long term due to Mining Steel Solutions & Services) provides
extreme high concentration of stable margins and revenue
iron industry and steel market
growth

Average savings of USD 30 per tonne of iron ore produced vs. purchased and a
4% average EBITDA realised by AM3S
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 Regional cost leadership for
assured profitability

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

500
500
Average 420 USD/t
400 Average 390 USD/t
400

300 300

200 200

100 100

0 0
IS a a n a IS a a e a
ic i n a
pa pe ic ric ric op ic
&
C er As hi a ro er C
Af me r er
a A m t of C J E u
Am A Eu A m
fric h es th th th
A ut R or u or
So N So N

Approximately 25% of ArcelorMittal production is from plants that are among the lowest cost in the world
and approximately 75% of ArcelorMittal production is at less than global industries average cost

50
* WSD, JPM, BCG and Arcelor Mittal estimates
Q&A

51