2013

IntroductionWith 119 million tonnes of annual production

capacity and 245,000 employees across 60 countries, ArcelorMittal is the world’s leading steel and mining company.

Chairman and CEO: Lakshmi MittalCFO: Aditya MittalHeadquarters: Luxembourg CityRevenue: US$ 84.213 billion (2012)

Operating income: US$ -3.226 billion(2012)

Profit: US$ -3.726 billion (2012)

Ranked: 70th on the Fortune Global 500

Vision and MissionVision

To be leaders in providing recreation and learning facilities and opportunities which promote stakeholder wellness.

Mission Producing safe, sustainable steel. Pursuing operational excellence in all business processes. Producing innovative steel solutions for our customers. Caring for our environment and the communities in which we

operate. Living the brand values of Sustainability, Quality and Leadership.

Trends in global steel industryo Consumption of steel increased after 1950 and trend was

continued till 1970o Consumption of steel started decline from 70s to 80so After 80s, demand for steel increased continually o International Iron and Steel Institute (IISI) forecasted

increment in demand for steel from 1.32 billion tones (in 2010)to 1.62 billion tones(in 2015)

o This demand was increased from countries like India and chinao To capture this demand, biggest steel producer of India (TATA

Steel ltd.) has been increased its production base by acquiring 4th largest steel producer of world(Corus steel)

What ArcelorMittal ProducesFinished, semi-finished, long and flat products, such as:-Slabs, Hot and cold rolled coil-Coated steel products-Tinplate and heavy plate, Rails-Wire rod, sections, sheet piles etc

Business StrategiesArcelorMittal’s success has been built on:

Three-dimensional strategy for sustainability and growth.

Geographical diversificationProduct diversificationValue Chain: Plans to continue upstream and

downstream integration

Mergers & Acquisitions have historically been a key pillar of ArcelorMittal’s strategy

Be a responsible corporate citizen

Mission & Objectives of ArcelorMittal University

Transforming tomorrow through the development of all our employees.

Build the ArcelorMittal culture and share best practices

“Grow” our own

future leaders

Attract, retain and develop talent

Target the excellence in functional expertise

Increase networking

Bring support to local training centres

The Deal

January 2006 : Mittal Steel offers the shareholders of Arcelor to create the world's first 100 million tonnes plus steel producer.

The deal valued at $22.7 billion offer to Arcelor’s shareholders

But soon the deal landed into controversy.Deal finally clinched when the shareholders of Arcelor

agreed to Mittal Steel’s offer – In June 2006Mittal raised its valuation of Arcelor to $32.9 billion.

CST

ArcelorMittalThe result of numerous mergers…

Global acquisitionUpstream integration

Consolidation EuropeDownstream Integration

Regional leadership Eastern EuropeIncrease presence in Asia and Africa

Regional leadership South Am.Leadership in value added

Leadership in value added

Capture growth and increase presence in growing market

Continued consolidation:

Analysis

• Segmentation: Steel markets

• Target Group: Industries including Construction, automotive, house hold appliance and packaging

• Positioning: World’s safest steel and mining company.

SWOT• Strength– Expertise in acquisition & mergers– Security of supply of raw material – Strong Research & Development team– Worldwide reach to optimize service across the

company– High quality operations with economies of scale– World's largest steel manufacturer with over

245,000 employees• Weakness– Cost of environmental hazard– Issues of debt to equity ratio

• Opportunities– Continue investment in mining operations– Acquisitions and joint ventures in developing

countries like India and China– Creating flexibility in operations

• Threats– Government and environment regulations– Rising labor cost– High competition

PESTEL AnalysisPolitical

ArcelorMittal operates, or proposes to operate, in a large number of developing countries.

Political systems in developing countries are vulnerable to their populations’ dissatisfaction, social and ethnic unrest and changes in governmental policies

Economic ArcelorMittal operates and sells products globally As a result, its business, financial condition affected by

fluctuations in exchange rates.

Social ArcelorMittal is already concentrating in the areas of safety,

health, social dialogue, and environment.

Technological Employs 1,200 researchers in 13 research centres around the

world, Develop a revolutionary steelmaking process Car manufacturers want to reduce the weight of their vehicles

by using thinner, but stronger steel ensuring good deformability.

Legal ArcelorMittal is subject to stringent health and safety laws and

regulations that give rise to significant costs and liabilities

EnvironmentalArcelorMittal supports the European Regulation of 18

December 2006 concerning the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH)

ArcelorMittal is set to become the largest beneficiary of the EU Emissions Trading Scheme

Major Marked Situation

Rising demand from china and India2012 London Olympic ,huge demand of steelIncreasing demand from AmericaExpected growth rate 6.5%China $585bn stimulus package for

infrastructure.

CompetitorsTATA STEEL, IndiaUNITED STATES STEEL CORPORATIONS, USABAOSTEEL GROUP CORPORATION, ChinaNIPPON STEEL & SUMITOMO METAL, JapanJFE HOLDING, JapanPOSCO, South Korea

ArcelorMittal selected by Technip to supply highly-resistant steel wires for the development of oil

Arcelor Mittal 2Q results show fall in earnings

ArcelorMittal SA and Kumba in talks on new iron ore supply deal

ArcelorMittal sells majority of Algerian unit to state

• http://townhall.com/news/business/2013/08/01/arcelor-mittal-2q-results-show-fall-in-earnings-n1653837

• http://www.reuters.com/article/2013/09/29/us-arcelor-algeria-idUSBRE98S06U20130929

• http://www.platts.com/latest-news/metals/london/arcelormittal-sa-and-kumba-in-talks-on-new-iron-26316571

• It is the World’s leading, World’s safest steel and mining company.

• ArcelorMittal’s Business Strategy of Mergers & Acquisitions is the main reasons for growth of the company.

• Arcelor Merger happened at the valuation of US$ 32.9 billion.

• Three-dimensional strategy for sustainability leads the company ahead of others.

• It has a revolutionary steelmaking process