Interim Financial Resultsfor the six months ended June 2010

1

Introduction and overviewNonkululeko Nyembezi-Heita, CEO

2

Overview (H1’2010 vs H1’2009)

Kumba Iron Ore• Interim agreement concluded• Surcharge on domestic steel sales

Cost • Raw material cost per tonne decreased

by 15%• Cost of steel sales decreased by 15%

Steel shipments and production• Dispatches up 31% • Average realised prices on same level• Liquid steel production up 28%• Capacity utilisation increased from

66% to 76%

Headline profit of R1 804m• Earnings per share of 450c vs loss of

190c• EBITDA of R3 037m vs R256m

3

4

Key result drivers

Liquid steel production 4% 28%Total sales volume 12% 31%Export sales volume 10% 17%Domestic sales volume 13% 37%Flat carbon steel product USD prices 7% 25%Long carbon steel product USD prices 12% 15%HRC Rand cash cost per tonne 2% -11%Billet Rand cash cost per tonne 9% -14%Labour productivity 3% 30%USD/ZAR (average rate) -2% -18%

H1’2010vs.

H2’2009

H1’2010vs.

H1’2009

4

Environment and steel markets

5

Global environment – General market trends

• World economic growth in 2009 decreased to 0.6% from 3.0% in 2008 - growth of 4.6% is expected in 2010

• Emerging markets grew by 2.5% in 2009 (2008: 6.1%), increasing to an expected 6.8% in 2010 and 6.4% in 2011

• Chinese economy grew by 9.1% in 2009 compared to 9.6% in 2008 despite fiscal control measures to cool it down while a growth rate of 10.5% is expected for 2010

• World crude steel production in the first six months of 2010 increased by 29% while China increased its output volumes by 25% compared to the same six months in 2009

• Global capacity utilization improved from 66% in H1’09 to 75% in H2’09 to 81% in H1’10

• World Steel Association’s latest forecasts are that apparent steel consumption for 2010 will be up 10.7% to 1.2 billion tonnes compared with 2009 (+120mt)

6Source: IMF July 2010, World Steel 6

-7000-6000-5000-4000-3000-2000-1000

0100020003000

2006 2007 2008 2009 2010

7

Global environment – Global steel market trends

• World production for first quarter increased by 29% to 341mt

• China produced 47% of world’s total crude steel over the first half of 2010 compared to 49% in the comparable period but still up on the 38% in same period of 2008

• China has been net importer since August 2009

• During H1’10 South Korea, India, the EU, Vietnam and Brazil were the top 5 importers of China’s steel

80

105

130

2006 2007 2008 2009 2010

25

30

35

40

45

50

Source: World Steel

Crude output (000t) China as % of world (%)

China – Imports minus exports

Crud

e stee

l outp

ut (m

t)(m

tonne

s)

%

7

8

Global environment – Input cost trends

• Step change in raw material trade as suppliers move away from contracts to spot

• Increasing price trend on all major raw materials while ZAR has strengthened by 18%

• H1’2010 iron ore prices have increased by 116% from H1’2009 benchmark levels

• International hard coking coal spot prices have increased by 64% in H1’2010 to US$220/t although contract values have slipped by 16% to US$184/t over the period

• Scrap values during H1’10 increased by 64% to US$410/t

• Alloy prices during H1’10 increased with Zinc up 66% and Tin up 43%

• On average crude oil prices were up 50% in H1’2010 compared to H1’2009

8

9

Global environment – benchmark prices

Coking coal

0

100

200

300

400

500

600

700

2004 2005 2006 2007 2008 2009 2010

Iron ore

Index

ed (J

anua

ry 20

04 =

100)

Scrap (Tex)

9

10

Export prices

10

LCWR HRC

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2004 2005 2006 2007 2008 2009 H1'2010$0

$20

$40

$60

$80

$100

$120

$140

Iron ore

Stee

l pric

es Ore prices

11

Domestic market – Quarterly shipments

0

200

400

600

800

1,000

1,200

1,400

1,600

2004 2005 2006 2007 2008 2009 201064%

66%

68%

70%

72%

74%

76%

78%

(kton

nes)

Flat carbon steel productsLong carbon steel products AMSA total market share

(market share)

11

12

Domestic market – Inventory levels

0

200

400

600

800

1,000

1,200

2004 2005 2006 2007 2008 2009 20100

2

4

6

8

10

12

14

16

(kton

nes)

Week’s dispatchesInventory (t)

Wee

ks

Source : SAISI 12

13

Domestic market – Imports

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2004 2005 2006 2007 2008 2009 20100

2

4

6

8

10

12

14

16

18

(tonn

es)

% of consumptionImports (t)

%

Source : SAISI up to Q3’08; ArcelorMittal South Africa estimates for Q4’08, Q1’09 and Q2’09 13

Physical results for H1’2010

14

Safety remains our priority

• Zero fatalities for H1’2010• LTIFR of 1.4 within the target of 1.9

• Vanderbijlpark Works new record of 42 days and 3 000 000 man hours without a LTI on 4 May 2010

• Pretoria Works (incl contractors) achieved 386 days without any injuries

• Newcastle Works achieved a safety record of 126 LTI free days before they had an LTI

• Tubular Products had 288 lost time free days before they had an LTI.

• Coke and Chemicals achieved 234 LTI free days

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2004 2005 2006 2007 2008 2009 Q1 Q2

ArcelorMittal South Africa

1515

Lost Time Injury Frequency Rate(Employees and Contractors)

per 1

m m

an ho

urs

2010

15

Liquid steel production & capacity

16

0

1,000

2,000

3,000

4,000

H1'05 H1'06 H1'07 H1'08 H1'09 H1'10 H2'05 H2'06 H2'07 H2'08 H2'09 H1'05 H1'06 H1'07 H1'08 H1'09 H1'10

ktonn

es

Flat carbon steel products

Long carbon steel products

Total

Liquid Steel Available capacity

16

17

Shipment volumes

0

1,000

2,000

3,000

4,000

H1'05 H1'06 H1'07 H1'08 H1'09 H1'10 H2'05 H2'06 H2'07 H2'08 H2'09 H1'05 H1'06 H1'07 H1'08 H1'09 H1'10

ktonn

es

Export carbon steel productsDomestic carbon steel products

Flat carbon steel products

Long carbon steel products

Total

17

Geographic shipments

0%

8%

1%

91%

20%

71%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Europe

Asia

Americas

Total Africa

Rest of Africa

South Africa

2009 2007 20062008 2005H1’10

18

Investment programme

1919

Safety 29 49 21

Growth 45 25 40

Environment 78 173 109

Sustainable maintenance 214 302 186

Total expenditure 366 549 356

Rm H1’2009 H2’2009 H1’2010

FinanceKobus Verster, CFO

20

Headline earnings

21

Revenue 11 960 13 638 16 165Profit/(loss) from operations -322 551 2 349Gains & (Losses) on forex & financial instruments -695 -118 113Interest income 183 16 24Finance costs -141 -135 -176Income from investments 1 2 1Tax 85 -120 -669Equity earnings* 41 165 135Net deficit on disposal or scrapping of assets* 4 17 27Impairment* 26Headline earnings/(loss) -844 404 1 804

- in USDm -92 53 239

H1’2009 H2’2009 H1’2010Rm

21

22

Quarterly headline earnings trend

2005 2006

1582 1653

988 869703

12471488

12921530 1624

1055

1532

2003

2573

3772

1136

469748

1056

-607-237 -65

-1200

-700

-200

300

800

1300

1800

2300

2800

3300

3800

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Q1 Q2 3Q 4Q Q1 Q2

Rm

20102007 2008 2009

22

EBITDA from segments

23

Flat carbon steel products -99 480 1 705

Long carbon steel products 111 480 846

Coke & chemicals 123 435 503

Corporate & Other 121 -102 -17

Total EBITDA 256 1 291 3 037

EBITDA margin % 2% 9% 19%

H1’2009 H2’2009 H1’2010Rm

23

Main cost drivers

24

Iron ore & pellets 513 598 734

Scrap / DRI / HBI 209 186 233

Coking coal & other fuels 1 661 1 196 1 169

Energy 229 300 256

Manpower 588 489 519

Maintenance 211 299 290

Other 1 072 1 042 1 126

Total 4 483 4 110 4 328

H1’2009 H2’2009 H1’2010R/ton (Production)

24

Cash flow

25

Cash generated from operations 322 968 2 584Working capital 1 701 1 128 -1 001 Capex -339 -575 -356Net interest and investment income 126 44 -18Investments -405 -119 -98Tax -640 -294 -387Dividends -1 627Repayment of borrowings and finance lease 3 -95 -27Repurchase of shares -3 918Effect of Foreign Exchange rate changes on cash -645 284 134Net cash flow - 5 422 1 341 831Net cash 3 007 4 348 5 179

H1’2009 H2’2009 H1’2010Rm

25

Working capital movement

26

Inventories 2 777 134 -1 151Finished products 147 -179 103Work-in-progress 872 211 -473Raw materials 1 820 31 -817Plant spares & stores -62 71 36

Receivables -701 683 -1 284Payables -140 195 1 358Utilisation of provisions -235 116 76

1 701 1 128 -1 001

H1’2009 H2’2009 H1’2010Rm

26

Financial ratios

27

Operating margin 3% 4% 15%EBITDA margin 2% 10% 19%Revenue / invested capital (times) 1.0 1.2 1.4Return on equity (annualised) - 7% 4% 16%Net cash / equity 14% 18% 21%

H1’2009 H2’2009 H1’2010Rm

27

ArcelorMittal ALSI Resources 20

28

Share performanceInd

exed

(Jun

e 200

5 = 10

0)

0

50

100

150

200

250

300

350

400

450

2005 2006 2007 2008 2009 2010

Period January 2005 to July 2010

Average Dividend Yield at 5.7% – 2.1x the market

28

29

Dividend

• Dividend policy• Distributing one third of headline earnings

• Headline earnings R1 804m (450cps)

• Dividend of 150cps

29

Investment programme and other developmentsNonkululeko Nyembezi-Heita, CEO

30

Investment programme

• Shifts of focus away from volume to areas such as electricity generation and raw material procurement

• Value adding downstream projects under investigation: for example, AMSA is in the final stages of an evaluation process for a new tin-line

• Environmental projects will continue to be a high priority

3131

32

Other focus areas

• Kumba

• Competition developments

• BBBEE

32

33

Corporate social responsibility

• School in Mamelodi - completed and handover before year-end

• Re-roofing Project in Bophelong and Boipatong (Vaal Triangle)• ArcelorMittal South Africa is re-roofing 3 332 houses in Bophelong and Boipatong

by 2012

• 920 houses have been completed benefiting almost 5 000 individuals

• At least 80 unemployed community members are employed and continue to receive on-the-job training as part of our broader commitment to skills development

• Project is supervised by 20 Candidate Engineers sourced from the Vanderbijlpark Works to ensure that the required quality, health and safety standards are achieved.

• The project is a result of community engagement in both townships

33

34

Environment

• Implementation of the Environmental Program to improve emissions to air, waste management and water management

• Important projects pursued• New emission abatement system for the Sinter Plant at Vanderbijlpark Works to be

completed by Q2’2011

• The achievement of “Zero Effluent Discharge” status at Newcastle Works by end 2011

• New disposal site at Vanderbijlpark Works to be completed by end 2010

• Preparations has started to comply with the new Air Emission Standards which became effective April 2010• Significant investment required at coke making facilities to ensure compliance

34

35

Training

International involvement• Saudi Arabia Training• Liberian Loco Training & apprenticeships• Canadian Apprenticeship ForumNational involvement• Career exhibitions• Foundry learnership• Pipe making learnership• Involvement with Department of Higher

Education for FET sectorArcelorMittal South Africa Related• Candidate artisan program• Fatality prevention standards• Establishment of E-Learning Classroom for

Asynchronous Generic Training • Bricklayer Training Centre Accreditation• Artisan to Technician Conversion Programme

using Virtual Technology

Pipeline Jun 2009

Dec 2009

Jun 2010

Total 1 464 3054 3 239

Engineers

Technicians

Apprentices

81

80

655

108

68

1 142

102

50

1 027

Engineering Pipeline

35

Outlook

36

37

Outlook for Q3’10

• Business environment• Domestic customer inventory levels high

• International demand and prices started to soften

• Raw material prices remain high

• Earnings• Earnings expected to decline

• Could be impacted by exchange rate movements

37

Interim Financial Resultsfor the six months ended June 2010

Questions

38