Investor Day 2014:
Strategic progressMining – exploiting our potential
10 March 2014 Bill Scotting, EVP and CEO Mining
Mary River iron ore project, Baffinland
DisclaimerForward-Looking Statements
This presentation may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect 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 the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal’s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance 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 Form 20-F for the year ended December 31, 2013 filed with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.
Non-GAAP Financial MeasuresThis presentation may contain supplemental financial measures that are or may be non-
GAAP financial measures. Definitions of such supplemental financial measures and a discussion of the most directly comparable IFRS financial measures can be found on ArcelorMittal's website at http://www.arcelormittal.com/corp/investors/presentations/.
1
Overview
2
Recap
Delivering
Market
• Franchise business potential
• Continued safety improvement
• Solid performance
• Growth plan on track
• Cost reduction focus
• Marketing strategy
• Commercialization
Further growth• Stretch growth opportunities
• Low capex intensity
Mining: a franchise business with
growth potential
Growth
• Exploration & development
• Deliver on project pipeline
• Customer strategic alliances
• M&A
Optimization
• Market development
• Customer relations and solutions
• Supply chain excellence
• Quality improvement and operational efficiencies
• Knowledge networksCurrent Assets
• Developing people
• Expansion of resource base
• Market driven products
• Production to planned levels at planned cost
License to Operate
• Improving health and safety performance
• Meaningful stakeholder engagement contributing to business goals
• Corporate responsibility supporting sustainability
Strategic pathway
Exploiting our potential
3
RecapRecap
4
Solid progress on health and
safety and sustainability
* World steel association -standard: LTIF = Lost Time Injuries per 1.000.000 worked hours; based on own personnel and contractors
ArcelorMittal Mining injury frequency rate*
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2012
0.7
2011
1.2
2010
1.5
2009
2.4
2008
3.4
Trending towards world class
performance
Safety remains the No1 priority for ArcelorMittal
On-going focus
• Continued aim of achieving zero
fatalities and serious injuries:
– Increasing safety awareness with
focus on hazard identification and
risk awareness for areas/equipment
and tasks
– Further y-o-y improvement in LTIF*
and greater focus on total injury
frequency rate reduction
• Manage occupational exposures
through control plans to address key
exposures from our health risk
assessments
• Demonstrate environmental
stewardship by managing and
minimizing our impact on the
environment
0.6
2013
Recap
5
Recap
Delivering
Marketing
• Franchise business potential
• Continued safety improvement
• Solid performance
• Growth plan on track
• Cost reduction focus
• Marketing strategy
• Commercialization
Further growth• Stretch growth opportunities
• Low capex intensity
Solid performancewith competitive margins
Definitions: “Market priced” tonnes represent amounts of iron ore or other raw materials from ArcelorMittal mines that could be sold to third parties on the open market. Market priced tonnes that are not sold to third parties
are transferred from the Mining segment to the Company’s 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. * ArcelorMittal EBITDA margin based on market-priced tonnes (i.e. excludes cost-plus tonnes from Revenue and EBITDA); “Producers” include BHP, Fortescue, Kumba, Rio Tinto and Vale. Competitor data
sourced from public information and has been prepared on a comparable periodic basis. 6
Iron ore EBITDA margins 2013FY*
Growing earnings whilst maintaining competitiveness
Mining EBITDA ($billions)
2.01.8
3.1
2.3
20112010 2012 2013
Iron ore marketable shipments (Million Mt)
35.128.828.0
25.2
2012
~15%+40%
2014F201320112010
50
70
20
30
60
40
10
0
Pro
du
ce
r 3
Pro
du
ce
r 1
Pro
du
ce
r 2
Pro
du
ce
r 4
Arc
elo
rMitta
l
Pro
du
ce
r 5
AMMC remains comparable. Liberia margins to improve once move from Phase 1 DSO to Phase 2 sinter feed
Delivering
7
Strategic continuity: growth on trackTarget 84MT capacity in 2015
Iron ore production/ capacity*
(Million Mt)
84
70
585654
49
2015F2014F2013201220112010
Production
CA
PA
CIT
Y* Capacity for Baffinland, ArcelorMittal Mines Canada, Algeria and Liberia on 100% basis
** Includes consideration from JV partner (Nunavut Iron Ore) for additional equity stake increase from 30% to 50%.
Liberia Phase 2 – Approved and underway
• 15Mtpa concentrator capacity to replace existing 4Mtpa DSO
operation by end 2015
• Revised sinter feed product defined for early years to maximize
commercial and cost benefits
• Stretch potential expansion to 20Mtpa through low capex
additions to mine fleet, and rail and port upgrade
Baffinland – Early revenue phase approved and underway
• 3.5Mt production in 2015 @ ~$730 million capex**
• Low cash cost and 66%+ premium product
Focus on value and growth
Liberia Phase 1 - Complete
• 4Mtpa Direct Shipped Ore (DSO) capacity
- Achieved 5.2Mt shipments in 2013
AMMC – Expansion to 24Mt complete
• Spirals upgrade, new concentrator, mine and rail upgrade
• 24Mt production and shipment rate achieved in Dec 2013
• Unit costs benefiting from higher volumes
CA
PA
CIT
Y
CA
PA
CIT
Y
Delivering
Liberia Phase 1 complete
8
Phase 1: DSO
Construction
• Mine site – simple crushing, screening and
rail loading facility
• 240km rail rehabilitation completed
• Buchanan port and material handling
facilities initial upgrade completed
Shipment details
• First DSO product shipped Sept 2011
• 50% to Europe and 50% to Asia
• Shipments of 5.2Mt in 2013
Costs
• Competitive cash cost
• Improving with ramp up and offshore trans-
shipment capability
Offshore loader
• Commenced cape size off shore loading
Dec 2012 to further increase margins
• Focus on long haul customers
Liberia Phase 1 DSO production exceeding expectations
Liberia trans-shipment
Liberia iron ore production (Million Mt)
4.1
3.3
1.3
2014F201320122011
Delivering
• Commission of new spirals line at concentrator
• New trucks and maintenance shop operational
• Additional rail sidings completed
• New concentrator completed
• New stacker-reclaimer and shiploader in
commissioning
• Concentrate production exceeded 2Mt in
December 2013
• Shipments of 1.987 Mt in December 2013
• Costs benefiting from scale
99
ArcelorMittal Mines Canada (AMMC) Expansion from 16Mt to 24Mt completed
24Mt expansion delivering
2013 concentrator production by month (Million Mt)
0.0
0.5
1.0
1.5
2.0
2.5
DecNovOctSepAugJulJunMayAprMarFebJan
AMMC concentrator
Delivering
Baffinland Early Revenue Phase Targeting 3.5Mt production rate by 2H 2015
10
Proposed Early Revenue Phase rationale
• ERP commenced in 1Q’13 (budget ~$730m)
• Enables an early mining phase that requires less capital investment than full project, creating training, employment, business opportunities for local region
• ERP to demonstrate product quality/ ability to operate
• High grade: 66%+ Fe iron – ‘direct shipping pellet’ and
fine ore (no processing or pelletization required);
products expected to achieve full premium value
ERP components
• Trucking of ore to Milne Inlet, loading of ore in Milne Inlet, and shipping of ore from Milne Inlet to markets
• Upgrades of road connecting Milne Inlet and mine site
• Mining and trucking of 3.5Mtpa from Deposit 1 to Milne Inlet throughout the year
• “Open water season” shipping of ore from Milne Inlet
• First ore to be shipped in 2H’15 product tonnage targeted for Europe
ERP on track for first shipments in 2H’15 during “open water season”
* Financing at JV level
Delivering
Relentless focus on cost reduction
delivering real savings
AMMC Concentrate Liberia DSO
Cost per ton analysis 2012-2014F (Base 100=2012)
Relentless focus on costs and capex monitoring
11
20132012 2014F
-20%-17%
2013 2014F2012
Delivering
-16%
2013 2014F2012
Kazakhstan Coal
Savings from multiple cost reduction
levers
Relentless focus on costs and capex monitoring
• Gaining economies of scale from debottlenecking
• Share and apply best practice leveraging internal and external benchmarks
• Zero based analysis of organization and overhead
• Delayering the organization
• Optimize mine plans with focus on grade control and recoveries
• Improving maintenance planning and reliability
• Operational excellence, rigour and discipline underway across assets
• Procurement focus on key category management, shared services and centres of excellence
• Targeted y-o-y reductions in spares and materials inventories through improved warehouse practices
12
Delivering
Volume improvement
Organizational levers
Efficiency improvement
Procurement benefit
13
Recap
Delivering
Market
• Franchise business potential
• Continued safety improvement
• Solid performance
• Growth plan on track
• Cost reduction focus
• Marketing strategy
• Commercialization
Further growth• Stretch growth opportunities
• Low capex intensity
Liberia Phase 2 revised …with potential to stretch to 20Mt capacity
14
Maximizing value potential of Liberia investments
Old phase 2 project:
• Expansion to 15Mtpa concentrate capacity by 2015
• Fully utilizing our wholly owned infrastructure
Liberia iron ore capacity forecast (Million Mt)
* subject to final approvals
Revised phase 2 project:
• Product analysis and additional mine planning
have identified potential to supply 15Mtpa high
quality sinter feed at significantly lower cost than
concentrate for first 8-10yrs
• Investment capex estimate of circa $1.7 billion
Stretch opportunity:
• Better definition of ore body and mine plan
confirmed potential to continue DSO phase for
additional 6 years
• Expansion to 20Mtpa capacity*
• Incremental investments enable benefits of scale
on rail, port and SGA
15
5
15
20
15
Phase 2 revised
- Sinter feed
Phase 2 old -
15Mt concentrate
Stretch
DSO
Phase 2 revised - Revised Sinter feed
Phase 2 old - Concentrate
Phase 2 revised: 15mt high
quality sinter feed capacity
by end of 2015 full
production ramp up to
15MT in next few years
Phase 2 stretch: High quality
sinter feed plus 5MT DSO
continuation
Further growth
• Daily records show potential in system
• First sustain 24Mt and chase the
“shifting bottleneck” to maximize
system potential
• Incremental investments for
debottlenecking as required:
– Mt Wright mine optimization, Fire Lake
expansion (richer ore) and crusher
debottlenecking
– Rail winter reclaim capability, long train
capability, additional sidings
– Additional conveyor capacity at port
• Significant cost benefits from scale
• Potential to expand beyond 30Mt at
low capital intensity
ArcelorMittal Mines Canada... Expansion potential to 30Mt
15
Iron ore production and capacity (Million Mt)
Maximizing value from use of own rail and port facilities
15
8
24
301
2012 Stretch
potential
Expansion
2014F
Spirals
Concentrator
Incremental
debottlenecking
Potentialexpansion by 6MT, through
low capexintensity
Completed expansion
Production
Potential further debottleneck
Further growth
0
50
100
150
200
250
300
350
Tier 1
Australia
Tier 1
Australia
Tier 1
West
Afica
Tier 1
Brazil
ArcelorMittal
planned
growth
Tier 1
Brazil
With good project returns
Sources: ArcelorMittal estimates and estimates based on public information for competitors
* Includes key projects subject to final approvals
Estimated capital costs of key growth
projects* in the iron ore industry (US$/t)
16
• ArcelorMittal’s iron ore growth projects
are competitively placed in terms of
capex intensity
• Leverage existing infrastructure and
essentially brownfield growth
• Well placed on the cost curve
• Project returns are attractive even under
conservative long-term price
assumptions
• Attractive low capex intensity / stretch
potential targets identified
Competitive capex intensity compared to peers
Further growth
17
Recap
Delivering
Market
• Franchise business potential
• Continued safety improvement
• Solid performance
• Growth plan on track
• Cost reduction focus
• Marketing strategy
• Commercialization
Further growth• Stretch growth opportunities
• Low capex intensity
Global sales reach*
18
Marketing strategy targets future
volumes and customer needs
• Developing the right products and mix by planning changes to ore and coal grades to ensure long run demand
• Developing the right customers through strategic trials, logistics requirements, and potential blend optimisation
• Achieving the right price (value in use) for our products:
– Leveraging steel group R&D knowledge to
assist our customers’ usage
– New blends of product have opened new
markets
– Targeted product specifications
• Optimizing logistics to market for margin expansion:
– Liberia (trans-shipment),
– AMMC (potential for larger cape size
vessels)
* Focus on AMMC and ArcelorMittal Liberia as our largest marketable tonnes assets
Current/proposed material flow
ArcelorMittal Liberia
AMMC
Belo Horizonte, Brazil
Shanghai, China
Luxembourg
Sales office
Domestic
Targeted niche marketing strategy
Kazakhstan coal and iron ore
Leverage strong sales, marketing and logistic capabilities
Sth Korea
Japan
Taiwan
Marketing
Sinter fines:
• More marketable than concentrate -higher ratio in sinter mix
• Liberia sinter fines specification positioned for customer value optimization with low gangue
• Sinter pot tests indicate good results for Atlantic blends
Strategy:
• Average grade in international market is changing: Fe…down, and level of gangue…up
• Higher grade sinter fines in demand
• Opportunity in Liberia to launch sinter feed sized product early and before concentrate benefit ArcelorMittal steel in Europe
• Bundling Liberia DSO + sinter fines for higher value/offtake bundling options with other AM iron ores
• Competitive supply of low gangue concentrate to China/Asia expected to fit well with expected trend of higher gangue ore supply from Australia and reduced domestic China supply
• Grow product streams with lower risk brownfield expansions in growth markets:
− E.g AM Kazakhstan high quality coking coal now developing new growth markets in West China via rail
Commercialization focused on product
development & new markets
Right products for right markets to grow shareholder value
19
Concentrate:
• AAMC fully sold, premium quality concentrate
• Liberia fineness limits usage to <15% in most sinter plants unless pre-agglomeration installed
− E.g HPS, Drum mixers
• Can use at high rates but typically with sizing value in use demerits
Right products for right
markets:
• Capturing market share in West China by leveraging our steel group value-in-use know how to offer the right coking coal to targeted mills
Marketing
20
Recap
• Mining is a strategic franchise business within ArcelorMittal
• We are exploiting our potential:
– Trending toward World Class Safety outcomes
– Assessing and optimizing our global asset base
– Developing a niche marketing strategy that guides our product and
mine development
– Delivering year-on-year cost reductions in key assets
– Delivering competitive bottom line performance
• We are delivering on our growth plans and Growing For Value
ArcelorMittal is building a world class mining business
focussing on value and growth