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ArcelorMittal Belgium
2018 plant tour for retail shareholders
26 September 2018
Disclaimer
Forward-Looking Statements
This document 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 latest Annual Report on Form 20-F on file 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.
1
2
Health & Safety Lost time injury frequency (LTIF) rate*
Mining & steel, employees and contractors
* LTIF = Lost time injury frequency defined as Lost Time Injuries per 1.000.000 worked hours; based on own personnel and contractors
Safety is our priority
Our goal is to be the safest Metals & Mining company
• Safety is ArcelorMittal’s priority Company focused on further reducing the
rate of severe injuries & fatality prevention
– Build a culture of vigilance
– Improve reporting of near misses
– Understand root causes and
share knowledge
– Focus on training 0.85 0.85 0.81 0.82 0.780.62 0.71
2007 2013
2.5
2008 20112009 2010
1.9
2012 2014 2015 2016 20171Q182Q18
3.1
1.8
1.4
1.0
1817
16 16,5
1,80,9 0,8 1,0 1,0
0
2
4
6
8
10
12
14
16
18
20
2013 2014 2015 2016 2017
ArcelorMittal Belgium
Exceptional strengths in Europe
• Health & Safety as priority no. 1 in our
journey to “zero”
• Customer reference:
− Product offer, product development,
quality & service
• Unique upstream and downstream
integration in close geographical proximity
• Unique & broad product range (uncoated,
metallic coated, OC),
− More than 50% of our shipments are
coated products
• Spearhead for the development of new
ultra-high strength steel products.
• Well optimized manufacturing processes
Belgian industry(includes all types of industry)
ArcelorMittal Belgium(own workforce + subcontractors)
Safety frequency rate (LTIFR)
3
Exceptional strengths in Europe
ArcelorMittal
Presence in Belgium
Fleurus
Geel
Genk
Liège
Gent
Charleroi
Shipments 6.8 million tons
Internal staff 5,800 employees
Subcontractors 1,300 at work on site/daily
Investments
133 million Euro
Main investment projects:• Blast furnaces (Ghent)
De-dusting casting floor
• Sinter plant (Ghent) hybrid
filter, sleeve filter
• Jet Vapor Deposition (Liège)
ArcelorMittal Belgium
Key figures (2017)
Flat products
R&D
Strategic R&D partner
Distribution solutions
Malonne
• Part of ArcelorMittal Group, a
leader in steel industry and
mining
• Broad career perspectives
• Challenging high tech working
environment
• Extensive training offer
• Strong internal mobility
• Indirect employment: +
13.000
• Direct employment: 5.800
▪ blue collars: 70%
▪ white collars: 20%
▪ Exempts: 10%
• Internal training department:
▪ 2016: >5% of total wage bill
Our employees
The ArcelorMittal Belgium team Attractive employer:
Highly qualified employees & high level of expertise
5
ArcelorMittal Belgium
2017 Production facilities
Blast furnaces - Ghent
Hot strip mill - Ghent
Coking plant
Sinter plants
Blast furnaces
Steel shop
Hot strip mill
Cold rolling millTTS + tandem 2/Gent
tandem 4/Liège
Pickling (Ghent)
Annealing
CAL (Ghent)
CAL (Liège)
BAF Ghent
6
ArcelorMittal Belgium
2017 Production facilities
Organic coating line - Liège
Strong finishing capacity More then 50% of shipments are coated products
Galvanising
ELO
Sikel/Genk
HP5/Marchin
Hot dip
Sidgal 1,2,3/Ghent,
Eurogal/Flémalle, Galva 5/ Flémalle
Galva 7 Combiline/Ramet
Jet Vapor Deposition
Organic coatingDecosteel 1,2/Geel–Ghent,
Combiline/Ramet & LP2/Ramet
Packaging LiègeTinning/Tilleur
Cold rolling mill
Tandem 5/Tilleur
Tailored welded blanks2 blanking lines &
6 laserwelding lines (Ghent)
1 blanking line (Liège)
7
1 2 3 4
Electro galvanising1
Organic coating
Hot dip galvanising 3
2
JVD & continuous
annealing
4
ArcelorMittal Liège
Exceptionally strong finishing capacity
8
Focusing on ArcelorMittal Gent
Fully integrated steelworks
Cold rolling mill and finishing
Hot strip mill
Blast furnaces
Steel shop
Raw material park
Coking plant
Sinter plants
Power plant
x
Excellent layout of the site enables lower production costs & higher energy efficiency
9
ArcelorMittal Gent
Maritime accessibility
• Canal Ghent-Terneuzen accessible for post-
panamax vessels
• Max. measurements
– Length: 265m
– Width: 37m
– Depth: 12.5m
• Quay
– Length: 1,050m
– Depth: 13.5m
– Max. deadweight: 71,000T
Accessible to capesize vessels from 2022 (120,000T) due to a new sea lock in Terneuzen
x
North Sea
10
Our end products
Cold rolled Metallic
coated
Organic coated
Hot rolled
& pickled
11
Our end products
Shipments ArcelorMittal Belgium
(Mt)
0
1
2
3
4
5
6
7
2015 2016 2017
Packaging
Export
Interworks(outside AMBelgium)
Industry
Automotive
Shipments
Product mix
24%
22%42%
9%3%
Hot rolled
Cold rolled
Galvanized
Metallic coated
Organic coated
16%
18%
25%
8%
19%
14% Benelux
France
Germany
UK
Rest of EU28
Rest of world
12
Shipments ArcelorMittal Belgium
ArcelorMittal Gent
Evolution of hot metal and slab production
Evolution of shipments
0
1
2
3
4
5
6
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
hot metal (mt) slabs (mt) shipments (mt)
13
Evolution of production & shipments
Steelplant of the future
Innovation & customer orientation
HR & DigitalisationEnergy &Environment
Our vision of a sustainable steel factory of the future, is built on passion for our strengths and flexibility to think differently
Close cooperation with:
➢ other industries
➢ R&D centres
➢ Schools and universities
14
Steelplant of the future
Leadership in our response to long term trends
Sustainable development - key to our resilience
– Product innovation (e.g. S-in-
motion solutions for automotive)
– Contribution to low carbon and
circular economy (e.g. Lanzatech
project on Carbon Capture and
utilisation)
– Drive the development of
environmental and social
certification schemes for steel and
mining
• Sustainable Development is driven by our vision to make steel the material
of choice for the low carbon and circular economy
15
Circular economy
Steel as a sustainable material
• Steel is for 100% recyclable
• 1 ton steel: 80% iron ore and 20% scrap
• 88% of our energy consumption is coming from our own
production
• 100% of our by-products is used as raw material in other
sectors (e.g. cement, ...)
• Out of the 5 Mton of yearly steel production, less then
0,1% is pure waste
Steel is a corner stone of sustainable economy
16
Environmental projects
Our investments
Hybrid Filter
Sinter plant 1
(March 2017)
Extension of the de-
dusting system of blast
furnace B
(Spring 2017)
Sleeve Filter
Sinter plant 2
(December 2017)
In total, about EUR 30m were invested in 2017
17
Demonstration plant:
Ethanol from blast furnace gas
Commissioning expected by 2019/2020 Production: 80 million liters ethanol
100.000 electrical cars
120 wind mills
OR
CO2 reduction equal to
Equivalent to
(according to energy objective)
Blast furnaces Gas treatment
Water treatment
Cogeneration
Bioreactor Distillation Bioethanol
Filter biomass
Breakthrough project enabling us to further reduce
our CO2 emissions 18
Clu
ster
3.0
: St
rate
gy P
revi
ew 2
018
-202
3
HR & digitalisation
- Think different -
GIG economy
19
Digitalization touches all industrial aspects
North Sea
Drones and robotics to
replace humans in
hazardous conditions
Roof & structure, Casting
floor, sampling, ..
Internet of Things
beacons and sensors: to
track, measure, follow
assets & people
Remote beacon meas.
on laddles , vehicles,
isolated assets. POC
with sensors in HSM
RM Motor axis
Big data architecture:
store all data images,..
R&D platform at AMG
Cyber physical systems,
Digital twins: for training
and commissioning
Intelligent simulation +
integrate into application
landscape (PLC, IT,..)
Exploit CPS & digital
twins to the max
Analytics : solve
complex issues in
quality , process and
logistics
10 POC cases running
including tools &
business cases
Smart PPE: measure
environement and health
conditions, alert
POC with Smart Helmet
Mobile device:
maintenance , safety &
production tasks
Slab inspection, MTTR
mobile app POC Hololens,
Lockout app, etc.
Vertical integrated IT & automation : foster high open connectivity from business and industrial IT
Virtual reality: train people,
optimize design of
installation
VR at engineering
VR training crane drivers
Smarter cams: replace
physical measures by
contactless & high
precision
Detect people, Taphole
control, product
identification, and control
AM Flat Europe industrial digitalization 20
Industry 4.0 as our mindset
Becoming a smart plant
North SeaNorth Sea
2
1
Health
&
Safety
Maintenance
&
Reliability
Handling
&
Logistics
Customer
&
Supplier
link
Infrastructure: Wifi/broadband, Cyber Security, adequate hardware, servers
Big Data: Data captation, data platforms, analytics tools, modeling tools
Devices: Cameras, drones, sensors, beacons, tags, smartphones, tablets, hololens
Skills: Awareness, mindset, training, competences
X
X
X
Infinite possibilities
=
Production
&
Quality
We’re pushing the boundaries to become the steel plant of the future
21
• Newest generation of ultra-high strength steel
• Part of the solution for the automotive industry (95gr/CO2 in 2020):
✓ Up to 20% lighter car body work
✓ Less fuel consumption
✓ Living up to the highest safety requirements
• The first Fortiform® steels are available (the whole range will exist of >10
products)
• €250 million invested: steel shop, hot strip mill, continuous annealing,
JVD
Product innovation - Fortiform®
Developed by the ArcelorMittal Group
The car of the future: safer and more economical with our steel!
22
Product innovation
Significant investments - Fortiform®
Continuous casting line Gent Continuous annealing line LiègeHot strip mill Gent
Jet Vapor Deposition Liège Hot dip galvanising line 3 Gent
23
Production innovation
World Class Manufacturing (WCM)
P0 Cost leadership
P1 Focused
improvement
P2 Autonomous maintenance
P3 Professional maintenance
P4 Competencies and
motivationP5 Early equipment management
P6 Product quality
P7 Customer
service
P8 Health and
safety
P9 Environment24
World Class Manufacturing (WCM)
• Culture focused on identifying and eliminating
losses:
▪ Process optimalisation
▪ Autonomous & predictive maintenance
▪ Product quality
▪ Health and safety
▪ …
• Involvement of all employees;
• 10 pillars, bringing order and structure;
• Predefined standard securing the results found;
• Clear milestones, every milestone reached is
celebrated.
25WCM brings forth a culture of continuous improvement,
it is the driving force behind our progress.25
North Sea
• Shop floor plays a central role;
• Do not tackle the symptoms,
but eliminate the root cause of
the problems and defects;
• “Set the basics right”, fulfil the
conditions of the standard;
• Use visual management;
involve everyone;
• Progress is achieved by the
teams.
• P0 Cost leadership
• P1 Focused improvement
• P2 Autonomous maintenance
• P3 Professional maintenance
• P4 Competencies and motivation
• P5 Early equipment management
• P6 Product quality
• P7 Customer service
• P8 Health and safety
• P9 Environment
Basic principles
26
10 pillars towards continuous improvement
WCM: our 10 pillars towards continuous improvement
• Energy efficiency and regulatory thresholds
for emissions in the USA and Europe have increased the need for
lighter materials for the motor industry.
• This calls for measures to counter the growing threat
of aluminium and composite materials
Our objective: outperform the competition Defend and extend our position in the automotive market
• It enables the required weight reductions due to
its ultra-high resistance grades
• It is the most economical solution
• It is more environment-friendly
• It is able to provide global solutions for a
worldwide customer base
Usibor® production by AMAL:The challenges are significant, but steel has the
advantages we need to deal with competition:
Steel, a solution that can be adapted to meet customers’ requirements
Transfer to other
sites *
* Sagunto, VAMA, Calvert
27
• Operating results are beginning to reflect the structural improvements to
the business and the industry
28
Performance significantly improved
EBITDA (US$ billion)
Significant EBITDA improvement
– ROE* of 14.7% in 1H’18
– ROCE** of 13% in 1H’18
– Best performing first half EBITDA
since 2011
– All segments supporting the
improved Group performance
2.7
4.3
5.6
1H’171H’16 1H’18
+107%
* Return on equity (ROE) is defined as net income divided by total shareholder equity; **Return on capital employed (ROCE) is defined as operating income plus impairments, income from equity method investments and other income minus tax (20% rate) divided by capital employed (defined as total equity plus net debt); Both ROE and ROCE calculated 1H’18 annualised basis
29
Capital allocation policy to maximise value for shareholders
Disciplined capital allocation
Targeting $6bn net financial debt (NFD) to ensure lowest cost
balance sheet Maximise FCF potentialRobust balance sheet
Invest in strengths
Returns to
shareholders
Investing in opportunities with focus and discipline Grow
FCF potential of the business
Base dividend reinstated Capital returns to shareholders
will increase to a portion of FCF once NFD target achieved
• Deleveraging remains our priority building the strongest platform for
consistent capital returns to shareholders
30
Action 2020 driving structural EBITDA improvement
Structural improvement: ArcelorMittal
0.9
1.5
3.0
2016 2020 Target2017
Action 2020 cumulative EBITDA improvement
achievement vs. targets ($billion)
• Unique to ArcelorMittal
• Business driven improvements
• Across 3 axes: cost optimisation,
volume gains, mix improvement
• Transformation of the business ongoing Action 2020 drives sustainable
performance improvement
Continuous innovation
3rd Generation AHSS products
CR980HF & CR1180HF
• HF / Fortiform® provide additional weight
reduction due to enhanced mechanical
properties compared to conventional AHSS
New press hardenable steels (PHS) Usibor®2000 &
Ductibor®1000
• Bring immediate possibilities of 10% weight
saving on average compared to conventional
coated PHS produced by ArcelorMittal
Jet Vapor Deposition (JVD) line : Jetgal ®
• JVD line is a breakthrough technology to
produce Jetgal®, a new coating for AHSS steels
for automotive industry
Electrical steels
iCARe®, 2nd Generation
• Family of electrical steels for electrified powertrain
optimization and enhanced machine performance,
Save*, Torque** and Speed*** are specifically
designed for a typical electric automotive
application.
-
Steel remains material of choice
• Electric vehicles (EV) to favour lightweight
designs (similar to traditional vehicles)
• EV employ AHSS to achieve range goals
The mass-market Tesla Model 3 body and
chassis is a blend of steel and aluminium,
unlike the Tesla Model S which is an aluminium
body (Source: Tesla website+)
Steel to remain material of choice for automotive
31
* Save (Steels with very low losses): Ideal for the efficiency of the electrical machine. Their key role is maximize the use of the current coming from the battery.
** Torque (Steels with high permeability): They achieve the highest levels of mechanical power output for a motor or current supply for a generator
*** Speed (Steels for high speed rotors): Specific high strength electrical steels which maintain high level of magnetic performance. They allow the machine to be more compact and have a higher power density.
+ https://www.tesla.com/compare
http://automotive.arcelormittal.com/ElectricVehiclesImpactOnSteel
32
Investment grade rating achieved from all 3 rating agencies
Balance Sheet: deleveraging ongoing priority
• Investment grade rating achieved from all 3 rating agencies*
• 1H’18 interest costs ~65% lower than 1H’12
• Lower interest costs will ensure greater translations of EBITDA to
FCF
Jun 30,
2017
Jun 30,
2016
Dec 31,
2012
Jun 30,
2014
21.8
Jun 30,
2015
Jun 30,
2018
16.6
10.5
17.4
11.912.7
-1.4
* Investment grade credit rating upgrades: S&P in February 1, 2018, Moody’s in June 22, 2018 and Fitch in July 13, 2018; ** Free cash flow refers to cash flow from operations less capex; *** Debt adjusted FCF refers to historical FCF adjusted to reflect 2018 forecast interest expense of $0.6bn
Net debt ($billion) Debt adjusted FCF** ($billion)
2.0
-1.0
0.0
1.0
3.0
20132012 2014 2015 2016 2017
Debt Adjusted FCF***
FCF**
$3bn cumulative FCF since
2012 increases to $8bn
adjusting for 2018F cash
interest expense
Capturing the best opportunities for growth whilst maintaining strict balance sheet discipline
33
Brazil: Votorantim acquisition strengthens
long products business in Brazil
➢ Minimal initial balance sheet impact from debt assumed
➢ Value to be created from significant synergies
Italy: Restore ILVA as leading Italian steel supplier
➢ Acquisition cost spread over several years*
India: Essar Steel; a high growth market
➢ Joint Venture with Nippon Steel
➢ ArcelorMittal to finance its share of the equity component of the JV finance structure
Disciplined growth Prioritising deleveraging and
balance sheet strength
Deleveraging is
our priority…
… creating the
strongest
foundation for
sustainable
returns
* Purchase price of €1.8bn will be reduced by annual instalments of €180m for a minimum of 2 years
34
ILVA – a tier 1 steel asset
ILVA is a strong fit within ArcelorMittal’s existing business & strategy
– Large scale, underperforming asset
requiring turnaround
– Significant cost improvement potential
and synergies identified
– Opportunity to leverage AM strengths in
R&D and product leadership and
service
• Minimal Balance sheet impact, EBITDA
accretive Yr1
• Provisional labour agreement with Ilva’s
trade unions on Sept 6, 2018
• Completion expected Nov 1, 2018
• No change to economics of the deal
Source: World Steel, Steel Statistical Yearbook 2015; Notes: *Iberia defined as Spain + Portugal
Taranto
Genova: Cold rolling, hot dip galvanising
and tin plate capacities
Taranto: Integrated plant for production
and sale of HRC, plates, pipes and tubes
97Mt Total European
Flat Steel demand
in 2015Novi Ligure: Cold rolling mill to serve end-
users customers (e.g. packaging, white goods)
• ILVA is the perfect opportunity for ArcelorMittal Ilva will be re-established
as a tier one supplier to European & Italian customers
35
Demand in core markets is growing
End market growth prospects in US (2007=100)
Demand recovery in core markets has been offset by high imports…
Steel shipment split by segment FY’17
75% of shipment to
developed markets
End market growth prospects in EU28 (2007=100)
707580859095
100105110
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
201
9
202
0
405060708090
100110120
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
201
9
202
0
Construction* Auto***Machinery**
Source: * & ** Oxford Economics Global Industry Forecasts; *** Oxford Economics Global Industry Forecasts, and LMC Automotive Global Car and Truck Forecasts; (latest update: 2Q 2017)
13%
15%
26%
48%
Brazil
ACIS
NAFTA
Europe
Investing in high return opportunities
36
Mexico: $1.0bn 3Yr investment for new 2.5Mt HSM
➢ Downstream investment to add value to our low-cost slab
➢ Increase capability to serve domestic Mexican industry
Selective organic growth opportunities
• Company investing with focus and discipline
High return
opportunities
given the
attractive market
dynamics in both
Mexico and Brazil
➢ Increase Hot dipped and cold rolled coil capacity and construction of a new 700kt continuous annealing line (CAL) & continuous galvanising line (CGL) combiline
➢ Strengthen ArcelorMittal’s position in automotive and construction through Advanced High Strength Steel products
Brazil: 3Yr investment to expand rolling capacity
37
Our vision for ILVA
A clear vision of long-term, sustainable success for ILVA
• Significant environmental issues –
need to bring ILVA up to and beyond
EU environmental standards
• Industrial challenge: investment and
expertise to improve operational
performance of ILVA’s assets
• Poor financial performance: material
decline in revenue since 2011, loss-
making for the past 4 years
• Low share of high-value added steels
in the portfolio of ILVA
• Need to rebuild client confidence:
product quality, innovation, supply chain
• Become a world-class player in terms
of competitiveness, sustainability,
environmental performance, value-add
• Leading presence in Italy, adding
value to the Italian industrial fabric
• A company recognised for
environmental performance
excellence: emissions to be reduced to
best practice levels, in line with and
beyond European environmental
standards and legislation
• A sustainably profitable company:
one that creates value for all
stakeholders, and the Italian economy
ILVA Today ILVA’s Future
USArcelorMittal
+2.0% to +3.0% WSA
+2.7%
EU28ArcelorMittal
+2.0% to +3.0% WSA
+2.0%
ChinaArcelorMittal
+1.0% to +2.0%WSA 0%
BrazilArcelorMittal
+5.5% to +6.5% WSA - Central & South America
+6.2%
CISArcelorMittal
+2.0% to +3.0%WSA
+2.3%
World ex-ChinaArcelorMittal
+3.0% to +4.0%WSA
+3.4%
38
Strong global economic fundamentals support further expected steel demand expansion in 2018
Demand outlook remains favourable
• Global steel outlook remains positive Growing demand in ArcelorMittal's
core markets
ArcelorMittal & WSA demand forecasts 2018
ArcelorMittal estimates; Worldsteel Association (WSA) Short range outlook, April 17, 2018
Daniel Fairclough – Global Head Investor Relations
+44 207 543 1105
Hetal Patel – UK/European Investor Relations
+44 207 543 1128
Valérie Mella – European/Retail Investor Relations
+44 207 543 1156
Maureen Baker – Fixed Income/Debt Investor Relations
+33 1 71 92 10 26
Lisa Fortuna – US Investor Relations
+312 899 3985
Donna Pugsley – Investor Relations Assistant
+44 203 214 2893
The ArcelorMittal investor relations app is available for download on IOS or android devices
ArcelorMittal IR app and contacts
39