Core strengths, sustainable returns

Transcription

Core strengths, sustainable returns
Fact Book 2011
With revenues of $94 billion and crude steel production of 91.9 million tonnes,
ArcelorMittal is the world’s leading steel and mining company, with a presence
in more than 60 countries.
Through our core values of sustainability, quality and leadership, we commit
to operating in a responsible way with respect to the health, safety and
well-being of our employees, contractors and the communities in which
we operate.
The theme for this year’s fact book is ‘core strengths, sustainable returns’.
We believe consistency is crucial in a fast-changing world. And at the heart
of this belief is a consistent strategy that focuses on our five core strengths.
By continually focusing on these strengths throughout our operations,
ArcelorMittal can deliver sustainable returns.
Cover image
Port-Cartier, Canada
Global presence
ArcelorMittal is the
world’s leading steel
and mining company.
With a presence in more
than 60 countries, we
operate a balanced
portfolio of cost competitive
steel plants across both
the developed and
developing world. We are
the leader in all the main
sectors – automotive,
household appliances,
packaging and
construction. We are also
the world’s fourth largest
producer of iron ore, with a global portfolio
of 16 operating units with
mines in operation or
development. In 2011,
we employed around
261,000 people.
Flat Carbon
Belgium
Charleroi
Ghent
Geel
Genk
Huy
Liège
Seraing
Brazil
Tubarão
Vega
Canada
Dofasco
(Hamilton)
China
Hunan Valin (JV)
Czech Republic
Frýdek-Místek
Ostrava
Long Carbon
France
Basse Indre
Châteauneuf
Desvres
Dunkerque
Florange
Fos-sur-Mer
Le Creusot
Mardyck
Montataire
Mouzon
Saint-Chamond
Saint-Chély
Germany
Bremen
Eisenhüttenstadt
Italy
Avellino
Canossa
Piombino
Kazakhstan
Temirtau
Luxembourg
Dudelange
Macedonia
Skopje
US
Burns Harbor, IN
Cleveland, OH
Poland
Coatesville, PA
Chorzów
Columbus, OH
Dąbrowa Górnicza Conshohocken, PA
Kraków
Double G, MS
Sosnowiec
Gallatin, KY
Šwiętochłowice
Gary Plate, IN
Warsaw
I/N Tek and
Zdzieszowice
I/N Kote, IN
Indiana Harbor
Romania
(East and West), IN
Galati
Monessen, MI
South Africa
Obetz, OH
Saldanha
Piedmont, NC
Vanderbijlpark
Pioneer, OH
Riverdale, IL
Spain
Warren, PA
Asturias
(Avilés and Gijón) Weirton, WV
Etxebarri
Lesaka
Sagunto
Sestao
Zaragoza
Mexico
Lázaro Cárdenas
Algeria
Annaba
Argentina
Villa Constitución
Bosnia and
Herzegovina
Zenica
Brazil
João Monlevade
Juiz de Fora
Piracicaba
Vitória
Canada
Contrecœur
China
China Oriental (JV)
Costa Rica
Caldera
Guápiles
Czech Republic
Ostrava
France
Gandrange
Germany
Duisburg
(Ruhrort and
Hochfeld)
Hamburg
Kazakhstan
Temirtau
Luxembourg
Differdange
Esch-Belval
Rodange
Schifflange
Mexico
Celaya
Lázaro Cárdenas
Tultitlán
Morocco
Jorf
Lasfar
Nador
Poland
Chorzów
Dąbrowa Górnicza
Sosnowiec
Warsaw
Disclaimer – forward-looking statements
In this fact book 2011, ArcelorMittal has made
forward‑looking statements with respect to, among other
things, its financial position, business strategy, projected
costs, projected savings, and the plans and objectives of our
management. Such statements are identified by the use
of forward-looking words or phrases such as ‘anticipates’,
‘intends’, ‘expects’, ‘plans’, ‘believes’, or ‘estimates’, or words
or phrases of similar import. Our actual results may differ
materially from those implied by such forward-looking
statements on account of known and unknown risks and
uncertainties that ArcelorMittal is or may be exposed
to. ArcelorMittal does not make any representation,
warranty or prediction that the results anticipated by
such forward‑looking statements will be achieved.
Such forward-looking statements represent, in each case,
only one of many possible scenarios and should not be
viewed as the most likely or standard scenario. ArcelorMittal
undertakes no obligation to publicly update its forwardlooking statements, whether as a result of new information,
future events or otherwise.
The financial information included in this ArcelorMittal
fact book 2011 has been prepared in accordance with IFRS
as issued by the International Accounting Standards Board
(IASB) and adopted by the European Union for publicly
traded companies. The financial information herein does
not contain certain information required to be provided to
shareholders under Luxembourg law, including in particular
the statutory accounts of ArcelorMittal on a stand‑alone
basis approved by the annual general meeting of
shareholders of ArcelorMittal on May 8, 2012.
In addition to this fact book 2011, please refer to our
statutory annual report 2011 and our annual report
2011 on form 20-F filed with the United States Securities
and Exchange Commission, both of which are available in
PDF format on www.arcelormittal.com/corp/investors/
financial-reports. Copies of the ArcelorMittal annual report
2011 are available free of charge at the registered office
of ArcelorMittal S.A.,19 Avenue de la Liberté, L-2930
Luxembourg, Grand Duchy of Luxembourg, or by calling
+352 4792 2347 or +352 4792 2366 or sending an
email to [email protected]
Unless indicated otherwise, or the context otherwise
requires, references herein to ‘ArcelorMittal’, the
‘group’ and the ‘company’ or similar terms are to
ArcelorMittal, société anonyme, having its registered
office at 19, Avenue de la Liberté, L-2930 Luxembourg,
Grand Duchy of Luxembourg, and, where the context
requires, its consolidated subsidiaries.
Mining
Romania
Hunedoara
Algeria
Tebessa
South Africa
Newcastle
Vereeniging
Bosnia and
Herzegovina
Prijedor
Spain
Asturias (Gijón)
Guipuzcoa (Bergara
and Zumarraga)
Madrid
Olaberria
Zaragoza
Brazil
Andrade
Serra Azul
Trinidad
Point Lisas
Ukraine
Kryviy Rih
US
Georgetown, SC
Harriman, TN
Indiana Harbor, IN
LaPlace, LA
Pine Bluff, AR
Steelton, PA
Vinton, TX
Canada
Mary River Project
Mont-Wright
Kazakhstan
Abaiskaya
Atansore
Atasu
Kazakhstanskaya
Kentobe
Kostenko
Kuzembayeva
Lenina
Lisakovsky
Saranskaya
Shaktanskaya
Tentekskaya
Tubular
Liberia
Buchanan
Yekepa
Mexico
Las Truchas
Peña Colorada
Sonora
Algeria
Annaba
Saudi Arabia
Jubail
Canada
Brampton, ON
Hamilton, ON
Woodstock, ON
South Africa
Vereeniging
Russia
Kemerovo
Czech Republic
Karviná
Ostrava
US
Hibbing, MN
Minorca, MN
Princeton, WV
France
Chevillon
Hautmont
Vitry
Ukraine
Kryviy Rih
Kazakhstan
Aktau
Mexico
Monterrey
Poland
Kraków
Romania
Galati
Lasi
Roman
US
Marion, OH
Shelby, OH
Venezuela
Unicon (Caracas)
Overview
Contents
Operations
Fact book
Mining operations
Pages 34-43
36 Miningoperationsoverview
38 Ironoreproductionbymine
39 Ironoreproductionbyregion
andshipment
40 Coalproductionbymineand
byregionandshipment
41 Rawmaterialconsumption
42 Ironorereservesandresources
43 Coalreservesandresources
Operations
Financials
Shareholder information
Pages 92-104
94 Shareholderinformation
96 Shareholdingstructure
97 Investorrelations
98 Equityanalystcoverage
100Steelmakingprocess
102Productsandservices
103Glossary
Pages 44-67
46 Numberofemployees
47 Keyfinancialandoperational
information
48 Consolidatedstatements
ofoperations
49 Quarterlycondensed
incomestatement
offinancialposition
ofcashflows
52 Liquidity
54 Operatingfootprint
55 Mainindustrialassets
56 FlatCarbonAmericas
58 FlatCarbonEurope
60 LongCarbonAmericas
61 LongCarbonEurope
62 LongCarbonAmericas
andEurope
64 AACIS
66 Mining
Pages 68-91
70 Brazil–CST,SolandVegadoSul
(FCA)
71 Canada–Dofasco/Hamilton
(FCA)
72 Mexico–LázaroCárdenas
(FCA&LC)
73 US–BurnsHarbor(FCA)
74 US–Cleveland(FCA)
75 US–IndianaHarborEastandWest
(FCA)
76 Belgium–Gent(FCE)
77 Belgium–Liège(FCE)
78 France–Dunkerque,Mardyck,
MontataireandDesvres(FCE)
79 France–Florange,Mouzon
andDudelange(FCE)
80 France–Fos-sur-Mer(FCE)
81 Germany–Bremen(FCE)
82 Germany–Eisenhüttenstadt
(FCE)
83 Poland–Krakówand
Świętochłowice(FCE)
84 Romania–Galati(FCE)
85 CzechRepublic–Ostrava
(LC&FCE)
86 Poland–DąbrowaGórnicza,
SosnowiecandZKZ(LC&FCE)
87 Spain–GijónandAvilés(LC&FCE)
88 Kazakhstan–Temirtau(AACIS)
89 SouthAfrica–Vanderbijlpark
(AACIS)
90 Ukraine–KryviyRih(AACIS)
Production facilities
Pages 22-33
24 Keyoperationaloverview
25 Crudesteelproductionquarterly
bysegment
26 Crudesteelproductionbyprocess
andregion
27 Steelshipmentsquarterly
bysegment
28 Steelshipmentsbyproduct
andregion
29 Steelshipmentsbyproduct
andsegment
30 Steelshipmentsbysegment
andregion
31 Salesbydestination
32 SteelEbitdaandaveragesteel
Ebitda/tonne
33 Capitalexpenditure
Financials
Pages 01-21
03 Financialhighlights
04 Ourbusiness
08 Ourfivecorestrengths
10 Groupstructure
12 Reportablesegments
13 Operatinginvestees
14 Keyperformanceindicators
18 Boardofdirectors
20 Seniormanagement
Mining operations
Overview
ArcelorMittal Fact Book 2011
Left Brazil
1
Health and Safety Day, April 2011
As in prior years, the group-wide
Health and Safety Day was
held in all of ArcelorMittal’s sites
to coincide with the International
Labor Organization’s World
Day for Safety and Health at
Work in April 2011. The theme
was ‘from priority to value’.
This year was one of the best
attended yet, with unprecedented
engagement from employees
and communities.
Above Luxembourg
Overview
Financial highlights
Operations
Highlights for 2008, 2009, 2010 and 2011
2.5
1.9
1.8
1.4
101.1
-11.4%
99.7
-7.5%
71.6
-29.2%
69.6
-30.2%
90.6
26.5%
85.0
22.0%
91.9
1.4%
85.8
1.0%
43.8
20.9
64.7
37.7
15.1
52.7
48.9
19.6
68.5
54.1
11.1
65.2
5.9
0.5
6.4
7.1
0.5
7.6
7.0
0.4
7.4
8.3
0.6
8.9
6.4
12.4
21.6
20.9
61.4
5.4
17.2
17.1
15.1
55.0
7.0
18.2
21.5
19.6
66.3
9.0
19.0
23.6
11.1
62.7
1.4
1.5
3.4
0.5
6.9
2.0
1.8
3.3
0.4
7.5
2.1
1.3
3.2
0.4
7.0
3.5
1.4
3.3
0.6
8.9
61,021
-47.8%
5,600
-76.3%
(1,470)
-112.3%
157
-98.3%
7,278
(2,784)
(6,347)
6,009
60,385
127,697
4,135
20,677
61,084
18,803
78,025
27.9%
8,525
52.2%
3,605
NA
2,916
NA
4,015
(3,438)
(7)
6,289
54,344
130,904
6,716
19,292
62,430
19,719
93,973
20.4%
10,117
18.7%
4,898
35.9%
2,263
-22.4%
1,777
(3,678)
(540)
3,905
54,251
121,880
2,784
23,634
56,690
22,513
116,942
21.4%
23,652
21.9%
11,960
-14.4%
9,466
-8.7%
14,652
(12,428)
(2,132)
7,587
60,251
133,155
8,409
25,667
55,258
26,489
66.52
39.96
6.84
-7.7%
31.86
42.27
0.11
-98.4%
35.79
41.29
1.93
NA
28.24
36.60
1.46
-24.4%
20.2%
10.2%
237.2
9.2%
-2.4%
80.4
10.9%
4.6%
100.4
10.8%
5.2%
117.9
2011
2010
2009
Financials
2008
Mining operations
Health and safety
Losttimeinjuryfrequencyrate(LTIFR)*
ArcelorMittal steel operations (millions of metric tonnes)
Productionofsteelproducts
Change year/year
Shipmentsofsteelproducts**
Change year/year
ArcelorMittal mining operations (millions of metric tonnes)
Mining production
Iron ore:
Ownproduction
Long-termcontract
Totalironoreproduction
Coal:
Ownproduction
Long-termcontract
Totalcoalproduction
Mining shipments
Iron ore:
Externalsales–Thirdparty
Internalsales–Market-priced
Internalsales–Cost-plusbasis
Strategiccontracts
Totalironoreshipments
Coal:
Externalsales–Thirdparty
Internalsales–Market-priced
Internalsales–Cost-plusbasis
Strategiccontracts
Totalcoalshipments
ArcelorMittal financials (US$ millions)
Sales
Change year/year
Ebitda
Change year/year
Operatingincome(loss)
Change year/year
Netincomeattributabletoequityholdersoftheparent
Change year/year
Netcashprovidedbyoperatingactivities
Netcashusedininvestingactivities
Netcashusedinfinancingactivities
Cashandcashequivalentsandrestrictedcash
Property,plantandequipment
Totalassets
Short-termdebtandcurrentportionoflong-termdebt
Long-termdebt,netofcurrentportion
Equityattributabletotheequityholdersoftheparent
Netdebt
ArcelorMittal financials per share (US$)
ArcelorMittalaverageshareprice
Bookvaluepershare
Basicearningspershare
Change year/year
ArcelorMittal ratios
Ebitdamargin
Operatingmargin
Ebitdapertonne
Sources: ArcelorMittal and NYSE.
* LTIFR refers to lost time injury frequency rate. Calculated as lost time injuries
per 1,000,000 worked hours; based on own personnel and contractors.
** Some inter-company shipments are not eliminated.
3
Our business
ArcelorMittal is the world’s
leading steel and mining
company. With a presence
in more than 60 countries,
we operate a balanced
portfolio of costcompetitive steel plants
across both the developed
and developing world.
We are the leader in all
the main sectors –
automotive, household
appliances, packaging
and construction. We are
also the world’s fourth
largest producer of iron
ore, with a global portfolio
of 16 operating units with
mines in operation or
development. In 2011,
we employed around
261,000 people.
Above Port-Cartier, Canada
With a total production capacity
of around 125 million tonnes of
crude steel, ArcelorMittal is a
highly efficient steel producer with
a diversified production process.
It has industrial operations in
20 countries on four continents,
producing flat and long steels and
tubular products. In January 2011,
the group’s stainless steel operations
were spun off into a separate
company, Aperam. ArcelorMittal
produced approximately 91.9
million tonnes of steel in 2011,
compared with 90.6 million tonnes
in 2010.
With our ongoing aim to develop
a world-class mining business, our
mining operations have reported
as a separate segment since
January 2011. We produced around
54.1 million tonnes of iron ore and
8.3 million tonnes of coal (excluding
supplies under strategic long-term
contracts) in 2011.
For many years, the group has
pursued a consistent strategy
focusing on product diversity,
geographic breadth and vertical
integration, both upstream and
downstream. The aim of this
three-dimensional strategy
is to reduce exposure to risk
and cyclicality.
Our upstream integration, through
our investment in iron ore and coal
mining assets, gives us a major
competitive advantage, provides
a measure of security of supply
and is an important natural hedge
against raw material price volatility.
Our downstream integration,
through our Distribution Solutions
segment, enables us to meet a wide
range of customer needs in virtually
all steel-consuming industries and
markets. We sell into a total of
approximately 174 countries.
The exceptional breadth of this
market reach improves our market
intelligence and helps us optimize
working capital through the better
management of our supply chain inventories.
Overview
OurDistributionSolutionsbusiness
sellsbothinlocalmarketsand
throughacentralizedmarketing
organization.Theservicecenters
finishsteelstosuitindividual
applications,oftenproviding
customizedsolutions,andhelp
thegroupserviceitscustomers
moredirectly.
Financials
Inflatproducts,wearetheclear
leaderincoatedsteels,fromhot
diptoelectro-galvanizedandcolor
coated.Wecontinuetodevelop
newgradesoflightbutultra-high
strengthsteelsfortheworld
automotiveindustry.Ourtechnical
know-howhasgivenusan18%
worldmarketshareinautomotive
steels.Wealsoproducethebiggest
platesintheworld.
Inlongproducts,weproduce
rebars,sectionsandbeamsinall
sizesandqualities,andhavehelped
buildmanyoftheworld’stallest
structures.Wearethebiggest
produceroftheveryhigh-strength
steelsneededforwindturbines,
andtheleaderinsheetpiles.The
worldenergyindustryrelieson
ArcelorMittalpipesandtubes.
Mining operations
furnaceroute,approximately
22.6milliontonnesthroughthe
electricarcfurnacerouteand
around3.4milliontonnesof
crudesteelthroughtheopen
hearthfurnace.Thisgivesus
flexibilityinrawmaterialand
energyusageandourscalehelps
ustooptimizeplantloadfactors.
Italsoincreasesourabilityto
meetchangingcustomerneeds.
Operations
Ourglobalfootprintalsogives
usauniqueabilitytoserveour
multinationalcustomersby
providingthemwithstandard
solutionsandconsistentquality
aroundtheglobe.Wehavebuilt
stronganddeeprelationships
withourbiggestcustomersand
frequentlyworkwiththemin
committedco-engineering
programs.Wehaveastrong
Withourglobalmarketreachand presenceinthedesigncenters
productdiversification,weareable ofmostglobalautomotive
manufacturersandactasa
bothtoreducerisk,andbenefit
strategicpartnerformany.
fromthefast-growingdemand
forsteelindevelopingeconomies
Wesupportthiswithoneofthe
–whichcurrentlyaccountfor
aroundone-thirdofourshipments. largestresearchanddevelopment
budgetsintheEuropeansteel
Whiledemandinthedeveloped
industry,aworldwidenetworkof
worldisweightedtowardsflat
productsandahighervalue-added laboratories,andaknowledge
managementprogramthatactively
mix,demandinthedeveloping
sharesbestpracticearoundthe
worldishigherforlongproducts
group’soperations.
andcommoditygrades.Asthese
economiesdevelop,theirneedfor
highervalueproductswillincrease. Wehaveadiversifiedproduction
Withourexperienceindeveloped process,producingapproximately
65.9milliontonnesofourcrude
markets,wearewellplacedto
steelthroughthebasicoxygen
meetthatdemand.
Steel
Asaglobalsteelproducer
withadiversifiedproductrange,
weserviceawiderangeof
customersandmarkets.In2011,
approximately38%ofoursteel
wasproducedintheAmericas,
46%inEuropeand16%inother
countriessuchasKazakhstan,
SouthAfricaandUkraine.
Left Belval, Luxembourg
5
Our business
continued
Mining
ArcelorMittal has built up a
world-class resource base in
iron and coking coal through
a combination of acquisitions
and internal expansion. Our
geographically diverse portfolio
of mining assets gives us the
opportunity to supply the
developing world as well as our
own steel facilities. Since January
2011, the mining business has
reported as a separate segment.
This has enhanced our ability to
maximize returns, optimize the
allocation of capital and pursue
our growth plans – which involve
a material increase in production
and sales to third parties.
the group’s own iron ore production Our total metallurgical coal reserves
are estimated at 323 million tonnes.
was sold to external customers.
The group’s coal mines are located
in Kazakhstan, Russia and the US.
In 2011, ArcelorMittal’s own
mines produced 54.1 million tonnes
A number of growth projects are
of iron ore1; our own mines and
under way – most notably in
strategic contracts produced
Canada and Liberia. The group is
65.2 million tonnes of iron ore
on target to expand annual iron ore
which was equivalent to 57%2 of
production (including off-take from
the group’s requirements. A total
of 28.0 million tonnes was shipped long-term contracts) to 100 million
internally and externally at market tonnes by 2015.
price3. Production of metallurgical
1Own iron ore production excluding
coal hit 8.3 million tonnes4; this
strategic long-term contracts.
was an increase of 20% as
2Assuming full production at Peña Colorada
compared with 2010.
for own use.
Our ore reserve estimation
and reporting processes are now
standardized and reserve estimates
All raw materials that can practically will be updated and reported
be sold outside the group are now annually. Following a full review of
either marketed to third parties or our life-of-mine plans, ore reserves
transferred to ArcelorMittal facilities and mineral resource estimates, our
iron ore reserves are now put at
at market price. Production from
captive mines closely linked to one 3.8 billion tonnes. Our principal iron
ore mining operations are located
of our steel facilities is transferred
in Canada, the US, Mexico, Brazil,
internally on a cost-plus basis. In
Algeria, Bosnia and Herzegovina,
2011, approximately 17%1 of
Ukraine, Kazakhstan and Liberia.
3Market
price tonnes represent amounts
of iron ore and coal 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.
4Own coal production excluding strategic
long‑term contract.
Our strategic priorities
ArcelorMittal is listed on the
stock exchanges of New York
(MT), Amsterdam (MT), Paris
(MT), Luxembourg (MT) and
on the Spanish stock exchanges
of Barcelona, Bilbao, Madrid and
Valencia (MTS).
and extending the average
In addition, progress has been
1 Health and safety
maturity of our borrowings.
made on the asset optimization
Health and safety is our
While we will continue to
plan launched in September
first priority across all sites,
invest in order to maintain
2011. By focusing production
countries and levels of the
our production facilities and
on our lowest-cost facilities
company, and is embedded
sustain R&D and product quality,
and better aligning our footprint
in all our values. We are driven
acquisitions will be made only
to market demand, we target
to create a safe and healthy
selectively and where they are
$1 billion sustainable Ebitda
workplace with no accidents
strategically important. We are
run rate improvement by the
and fatalities. Journey to Zero,
committed to maintaining our
end of 2012.
our company-wide health
investment grade rating. We are
and safety program to reduce
also considering some non-core
3Grow our mining resource base
workplace accidents and
asset divestments.
occupational diseases, embodies Our mining business currently
accounts for around 30% of
our health and safety goals: to
5Execute organic
group profitability. We have
become the safest steel and
growth opportunities
ambitious growth plans
mining company in the world.
in emerging markets
to increase our supply of iron
Although we have temporarily
ore to 100 million tonnes
2Maintain and improve
suspended steel growth
(including strategic contracts,
cost-competitiveness
expenditure due to current
but excluding the potential
With $4.0 billion of management
uncertainties arising from the
output from Baffinland) by
gains banked since 2008,
eurozone sovereign debt crisis,
2015, including doubling of
ArcelorMittal is targeting a
depending on local market
our market-priced tonnages
further $0.8 billion of savings
conditions and projected global
over five years.
by end of 2012. These will come
and regional demand trends, we
from operational improvements,
will continue to target growth
sales, general and administrative 4Preserve balance sheet strength
in key developing markets.
Since the 2008 crisis, we have
expenses (SG&A) and fixed
materially strengthened our
cost savings.
balance sheet, reducing debt
Overview
Operations
2011 highlights
After first gaining entry
in 2010, ArcelorMittal
is included into the
prestigious Dow Jones
Sustainability World Index
(DJSI) for the second
consecutive year.
October
ArcelorMittal is given the
‘Life Cycle Assessment
Leadership’ award by
the World Steel Association
for the quality of the work
performed by the life cycle
analysis team of global
research and development,
based in Maizières, France.
ArcelorMittal’s Group
Management Board and
management committee
grow. Lou Schorsch joins
the GMB with responsibility
for Flat Carbon Americas,
group strategy, CTO,
global automotive and as a
member of the investment
allocation committee.
Christophe Cornier chooses
to retire from the GMB and
assumes the role of advisor
to the CEO and GMB; he
retires on December 14, 2011
as chairman of ArcelorMittal
France. The management
committee is extended from
12 to 24 members (more
details on page 20).
December
ArcelorMittal celebrates
its 4th annual International
Volunteer Work Day:
thousands of employees
volunteer in different
activities to improve the
lives of the people in
the community.
May
ArcelorMittal plans to
expand its Mont-Wright
mining complex and have
additional construction
at Port-Cartier in Canada
(subject to environmental
and other regulatory
approvals).
September
ArcelorMittal commences
commercial iron ore
production from its mining
operations in Liberia. This
launch is an important
milestone in the recovery
of Liberia’s economy, which
was devastated by 14 years
of civil war.
November
As a first-time entrant to
the survey, ArcelorMittal
is listed in Aon Hewitt’s
European list of ‘Top
Companies for Leaders’
and ranks among the
top seven companies
in Europe.
Financials
March
ArcelorMittal and Nunavut
Iron Ore Acquisition Inc.
complete the acquisition
of Baffinland Iron Mines
Corporation shares
under their joint offer
(70% ArcelorMittal and
30% Nunavut).
June
ArcelorMittal received the
Best Process Innovation
award in American Metal
Market’s (AMM) 2011 Awards
for Steel Excellence for our
S-in motion concept and
the company’s continuous
commitment to producing the
most ground-breaking steel
for the automotive sector.
Mining operations
January
ArcelorMittal’s stainless
and specialty steels business
is spun-off into Aperam.
Left Liberia
7
Our five
core strengths
Supported by our
consistent strategy,
we possess five
core strengths that
allow us to generate
sustainable returns
through the economic
cycle. Because of those
strengths, we remain
committed to our growth plans.
Our core projects
are not dependent
on strong economic
conditions in order
for us to create value for our shareholders.
We have quality
core assets
We have a world-class
mining business
Quality is one of our
three core values and
quality underpins our
core assets, from steel
plants to mines. Our
group is well diversified
and in 2011 our production
facilities outside North
America and Europe
generated around 40%
of our steel‑based Ebitda.
We are the world’s fourth
largest iron ore producer,
and have world-class
iron ore reserves. Led
by a highly experienced
management team, we
are proud of our mining
knowledge base. We
invest in new mining
projects globally, with
a commitment to
sustainability and
the environment.
Overview
The steel industry is a
competitive industry –
and we recognize that
in order to maintain our
leading position in the
industry, we must remain
competitive on costs.
Across the group, we
make the most of our
scale and global footprint
to share initiatives that
will reduce our fixed costs
as well as contribute to
more efficient operations.
ArcelorMittal has a
strong global automotive
manufacturing presence,
with production facilities
in North America, South
America, Europe and
South Africa, as well as
a global network of sales
and service offices. We
are the undisputed leader
for high value-added
products for the
automotive industry and
have a market share of
around 18% worldwide.
Since the crisis we
have strengthened
our balance sheet,
significantly reduced
debt and extended
the average maturity
of our borrowings.
We are committed
to maintaining our
investment grade
rating and as part
of our plan to do
this, are considering
some non-core
asset divestments.
Financials
We have a stronger
balance sheet
Mining operations
We are leaders in
automotive steel
Operations
We are delivering
cost improvement
9
Group structure
ArcelorMittal
Flat Carbon Americas
Flat Carbon Europe
Long Carbon Americas
and Europe
ArcelorMittal
Brasil
ArcelorMittal
USA
ArcelorMittal
Atlantique et
Lorraine
ArcelorMittal
Belgium
Acindar
ArcelorMittal
Belval &
Differdange
ArcelorMittal
Lázaro
Cárdenas
ArcelorMittal
Dofasco
ArcelorMittal
España
ArcelorMittal
Flat Carbon
Europe
ArcelorMittal
Brasil
ArcelorMittal
Hamburg
ArcelorMittal
Galati
ArcelorMittal
Poland
ArcelorMittal
Duisburg
ArcelorMittal
Las Truchas
ArcelorMittal
Méditerranée
ArcelorMittal
Bremen
ArcelorMittal
Gipuzkoa
ArcelorMittal
Montreal
ArcelorMittal
Eisenhüttenstadt
Industeel
Belgium
ArcelorMittal
Point Lisas
ArcelorMittal
Ostrava
ArcelorMittal
Warszawa
Sonasid
Industeel
France
ArcelorMittal
Annaba
10
Overview
Operations
ArcelorMittal
Kuzbass
Minorca Mines
ArcelorMittal
Lázaro Cárdenas
Mining Assets
Hibbing
Taconite Mines
ArcelorMittal
Princeton
ArcelorMittal
Mineração
Serra Azul
ArcelorMittal
Kryviy Rih
Mining Assets
ArcelorMittal
Temirtau
Mining Assets
Liberia
ArcelorMittal
International
Luxembourg
ArcelorMittal
Mines Canada
ArcelorMittal
Temirtau
ArcelorMittal
South Africa
Distribution Solutions
Financials
ArcelorMittal
Kryviy Rih
Mining
Mining operations
AACIS
11
Reportable
segments
ArcelorMittal operates its
business in the following
six reportable segments
corresponding to
continuing activities;
Flat Carbon Americas;
Flat Carbon Europe; Long
Carbon Americas and
Europe; Asia, Africa and
CIS; Distribution Solutions
and Mining.
Habitat for Humanity
The ArcelorMittal Foundation has
worked in partnership with Habitat
for Humanity since 2008 to help
low-income families afford homes.
The Foundation’s support includes
provision of funding steel for
construction, human capital and
innovative building solutions. To
date, the ArcelorMittal Foundation
has provided homes for families in
Argentina, Costa Rica, Macedonia,
Mexico, Romania, South Africa
and Ukraine.
Right Liberia
Within its corporate headquarters
and, where appropriate, at the
segment or regional management
level there are specialized and
experienced executives in fields
such as finance, mergers and
acquisitions, marketing,
procurement, operations, shipping,
human resources, communications,
internal assurance, health and
safety, information technology,
strategic planning, performance
enhancement, technology and law.
countries. In 2011, shipments
from Flat Carbon Europe totaled
27 million tonnes.
Long Carbon Americas and Europe
produces sections, wire rod, rebars,
billets, blooms, wire drawing, pipes
and tubes, sheet piles, rails, ingots,
specialty bars and slopes. In Long
Carbon Americas, production
facilities are located at 14
integrated and mini-mill sites
located in six countries, while in
Long Carbon Europe production
facilities are located at 17
Flat Carbon Americas produces
integrated and mini-mill sites
slabs, hot-rolled coil, cold-rolled
in nine countries. In 2011,
coil, coated steel products and
shipments from Long Carbon
plate. These products are sold
Americas and Europe totaled
primarily to customers in the
following industries: distribution and approximately 24 million tonnes.
processing; automotive; pipes and
tubes; construction; packaging; and AACIS produces a combination
appliances. In Flat Carbon Americas, of flat and long products. It has six
flat and long production facilities in
production facilities are located at
eight integrated and mini-mill sites three countries. In 2011, shipments
located in four countries. In 2011, from Asia, Africa and CIS totaled
approximately 13 million tonnes,
shipments from Flat Carbon
Americas totaled 22 million tonnes. with shipments having been
made worldwide.
Flat Carbon Europe produces
Distribution Solutions is primarily
hot-rolled coil, cold-rolled coil,
an in-house trading and distribution
coated products, tinplate, plate
arm of ArcelorMittal. It also provides
and slab. These products are
value-added and customized steel
sold primarily to customers in the
solutions through further steel
automotive, general industry and
packaging industries. In Flat Carbon processing to meet specific
customer requirements.
Europe, production facilities are
located at 15 integrated and
Mining provides the Company’s
mini-mill sites located in six
steel operations with high quality
and low-cost iron ore and coal
resources and also sells limited
amounts of mineral products to
third parties. The Company’s
mines are located in North and
South America, Europe, the CIS
and Africa. In 2011, iron ore and
coal production (including strategic
contracts) totaled approximately
65.2 million tonnes and 8.9 million
tonnes, respectively.
In January 2011, ArcelorMittal
completed the spin-off of its
stainless steel operations to a
separately-focused company,
Aperam. Accordingly, the former
Stainless Steel segment has been
reclassified as discontinued
operations for all periods presented.
12
Overview
Operating investees
Operations
Investee(US$millions)
Carryingvalueat
December31,2011
Bermuda
Turkey
Germany
China
Luxembourg
Spain
Spain
SouthAfrica
Netherlands
Brazil
UnitedStates
Italy
Turkey
Poland
Korea
UnitedStates
Australia
Brazil
Australia
47.03%
25.78%
33.43%
29.97%
23.48%
35.00%
35.00%
50.00%
50.00%
50.00%
50.00%
35.00%
43.90%
33.77%
50.00%
50.00%
15.93%
49.11%
–
1,337
1,596
1,191
686
614
468
385
496
260
215
122
177
163
168
148
155
133
124
908
806
10,152
1,475
1,378
1,149
691
597
506
408
397
255
192
168
164
157
153
152
151
116
112
–
820
9,041
ChinaOriental1
EregliDemirVeCelikFab.T.A.Ş.2,3
DHSGROUP
HunanValinSteelTubeandWireCo.,Ltd.4
EnovosInternationalSA5
Gestamp
GonvarriSteelIndustries
KalagadiManganese(Propriety)Ltd
MacsteelInternationalHoldingsB.V.
ArcelorMittalGonvarriBrasilProdutosSiderurgicos
GallatinSteelCompany
CoilsLamiereNastri(CLN)S.p.A.
BorcelikCelikSanayiiTicaretA.S.
STALPRODUKTSA
KiswireArcelorMittalLtd
I/NKoteL.P.
CoalofAfricaLimited6
Cía.Hispano-BrasileiradePelotizaçao
MacarthurCoalLtd7
Other
Total
1
2
3
5
6
7
8
On May 21, 2008, ArcelorMittal acquired a 14.9% stake in Macarthur. On July 10, 2008,
the Company increased its stake from 14.9% to 19.9% following the acquisition of
10,607,830 shares from Talbot Group Holdings. The total acquisition price of Macarthur
was 812. In the second quarter of 2009, ArcelorMittal did not subscribe to a capital
increase in Macarthur and the stake decreased to 16.6%. At the end of August 2010,
ArcelorMittal purchased an additional 6,332,878 shares. The Company’s stake therefore
remained at 16.6%. Macarthur established a Share Purchase Plan limited to shareholders
with registered address in Australia and New Zealand and a Dividend Reinvestment Plan,
which provides the opportunity to shareholders to use their dividends to acquire additional
shares in Macarthur without incurring brokerage or transaction fees. ArcelorMittal decided
not to participate. These plans resulted in the issuance of new shares bringing the total
number of shares to 302,092,343. ArcelorMittal’s shareholding decreased from 16.6% to
16.07%, corresponding to 48,552,062 shares.
On August 18, 2011, ArcelorMittal and Peabody Energy (‘Peabody’) launched a tender offer
to acquire all of the outstanding shares of Macarthur in which ArcelorMittal already held a
16.07% stake.
On October 25, 2011, ArcelorMittal notified Peabody that, following its acceptance of the
offer of PEAMCoal Ltd. (‘PEAMCoal’), a bid company 40% owned by ArcelorMittal and 60%
owned by Peabody, to acquire up to 100% of the issued securities of Macarthur in August
2011, it would be terminating the Co-Operation and Contribution Agreement between
ArcelorMittal and Peabody. The Company tendered its Macarthur shares on November 3,
2011. Under the initial proposed offer on August 1, 2011, Macarthur shareholders were
to be offered a cash price of AUD$15.50 per share, implying a value for the equity in
Macarthur of approximately AUD$4.7 billion. On August 30, 2011, the Macarthur board
of directors agreed to a cash takeover of all outstanding shares for AUD$16.00 per share,
which was raised on October 21, 2011 to AUD$16.25 per share if the 90% threshold of
acceptance was reached. ArcelorMittal remained a shareholder in PEAMCoal until the
termination arrangements were completed on December 21, 2011. The Company recorded
an impairment loss of 107 with respect to its 16.07% stake to reduce the carrying amount
to the proceeds from the tendered shares which were settled on December 21, 2011.
The country of incorporation corresponds to the country of operation except for China
Oriental, Macsteel International Holdings B.V. and Coal of Africa Limited whose country
of operation is China, South Africa and South Africa, respectively.
4
On November 8, 2007, ArcelorMittal purchased approximately 820,000,000 China
Oriental shares for a total consideration of 644 (HK$5.02 billion), or a 28.02% equity
interest. On December 13, 2007, the Company entered into a shareholder’s agreement
which enabled it to become the majority shareholder of China Oriental and to finally raise
its equity stake in China Oriental to 73.13%. At the time of the close of its tender offer on
February 4, 2008 ArcelorMittal had reached a 47% shareholding in China Oriental. Given
the 45.4% shareholding held by the founding shareholders, this left a free float of 7.6%
against a minimum Hong Kong Stock Exchange (‘HKSE’) listing requirement of 25%.
The measures to restore the minimum free float have been achieved by means of sale of
17.4% stake to ING Bank N.V. (‘ING’) and Deutsche Bank Aktiengesellschaft (‘Deutsche
Bank’) together with put option agreements. On March 25, 2011, these agreements have
been extended for additional 36 months. The Company has not derecognized the 17.4%
stake as it retained the significant risk and rewards of the investment. As of
December 31, 2011, the investment had a market value of 399 (562 in 2010).
On March 28, 2012 ArcelorMittal sold (through certain subsidiaries), 134,317,503
shares and a series of warrants in respect of 134,317,503 shares in Eregli Demir Ve Celik
Fab.T.A.Ş. (“Erdemir”) by way of a single accelerated bookbuilt offering to institutional
investors. ArcelorMittal currently owns 537,270,015 shares in Erdemir representing
approximately 25% of Erdemir’s share capital. Following completion of the transaction it
is expected that ArcelorMittal will hold approximately 18.7% of Erdemir’s share capital,
decreasing to approximately 12.5% if all of the warrants are exercised.
As of December 31, 2010 and 2011, the investment had a market value of 1,317 and
933, respectively. For purposes of applying the equity method of accounting, the Company’s
share of Erdemir’s profi t or loss for the years ended December 31, 2010 and 2011 have
been obtained from Erdemir’s financial statements prepared as of September 30, 2010 and
2011, respectively.
As of December 31, 2010 and 2011, the investment had a market value of 502 and 396,
respectively. In August 2011, Hunan Valin completed the last stage of the private placement
to issue 278 million new shares to Valin Group at CNY 5.57 per share. Accordingly,
ArcelorMittal’s shareholding decreased from 33.02% to 29.97%.
On January 6, 2011, the City of Luxembourg contributed its gas and electricity networks
as well as its energy sales activities to two subsidiaries of Enovos International S.A., Creos
Luxembourg S.A. and Enovos Luxembourg S.A., respectively. Consequently, the stake held
by the Company in Enovos International S.A. decreased from 25.29% to 23.48%.
On November 3, 2011, Coal of Africa Limited announced that 130,000,000 new ordinary
shares had been placed at a price of GBP 0.51 per share. ArcelorMittal South Africa
contributed for 16 in order to maintain its shareholding and not be diluted.
Carryingvalueat
December31,2010
Ownership%at
December31,2011
Financials
Countryofincorporation8
Mining operations
TheCompanyhadthefollowinginvestmentsinassociatesandjointventuresaccountedforundertheequitymethod,atDecember31,2011:
13
Key performance
indicators (KPIs)
The key performance indicators that
ArcelorMittal’s management uses to
analyze operations are provided below.
Health and safety
(lost time injury frequency rate for steel and mining)
2011
1.4
2010
1.8
2009
1.9
2008
2.3
2007
ArcelorMittal has a clear and
strong health and safety policy
aimed at reducing the severity
and frequency of accidents on a
continuing basis across the entire
organization. The corporate health
and safety department defines
and follows-up performance
3.3
targets and monitors results
from every business unit and site.
We have also implemented an
injury tracking and reporting
database to track all information
on injuries, lost man-days and
other significant events.
Health and safety performance,
based on own personnel figures
and contractors’ lost time injury
frequency rate, improved to
1.4 for the year 2011 from 1.8
for the year 2010 with significant
improvement in Mining operations,
Flat Carbon Europe, Long Carbon
Americas and Europe, and Asia,
Africa and CIS operations, only
partially offset by deterioration in
the Flat Carbon Americas and the
Distribution Solutions segments.
Sales1
(US$ millions)
2011
93,973
2010
2009
78,025
61,021
2008
116,942
2007
The majority of steel sales from
ArcelorMittal are destined for
domestic markets; these sales
are usually approached as a
decentralized activity, managed
96,293
either at the business unit or
at the production unit level. For
some specific markets, such as
automotive, there is a global
approach offering similar products
manufactured in different
production units around the world.
In 2011, sales approximated
$94.0 billion, compared with
2010 sales of $78.0 billion.
This 20% increase was due to
higher average steel selling prices
(+18%) and marginally higher
steel shipments (+1%).
Steel shipments2
(thousands of metric tonnes)
2011
85,757
2010
84,952
2009
69,624
2008
99,733
2007
ArcelorMittal had steel shipments
of 85.8 million tonnes for 2011,
representing an increase of 1%
from steel shipments of
14
107,789
85.0 million tonnes in 2010.
Group shipments remain some
20% below pre-crisis levels.
Steel shipments increased in the
Flat Carbon Americas and Long
Carbon segments and declined
in the Flat Carbon Europe and
AACIS segments.
Overview
Operations
Mining operations
Crude steel production
(liquidsteelinthousandsofmetrictonnes)
2011
91,891
2010
90,583
71,620
2008
101,130
2007
114,190
electricarcfurnacerouteand
approximately3.4milliontonnes
ofcrudesteelthroughtheopen
hearthfurnaceroute.This
providesArcelorMittalwith
greaterflexibilityinrawmaterial
andenergyuse,andincreased
abilitytomeetvaryingcustomer
requirementsinthemarketswe
serve.In2011,about38%of
crudesteelwasproducedin
theAmericas,46%inEurope
and16%inothercountries
suchasKazakhstan,South
AfricaandUkraine.
Ebitda
(US$millions)
2011
10,117
2010
2009
8,525
5,600
2008
Ebitdaisdefinedasoperating
incomeplusdepreciation,
impairmentexpensesand
exceptionalitems.ArcelorMittal
generatedEbitdaof$10.1billion
in2011,19%higherthan2010.
1
In2011,around65.9million
tonnesofcrudesteelwere
producedthroughthebasic
oxygenfurnaceroute,around
22.6milliontonnesthroughthe
Financials
2009
23,652
Ebitdaatonneshippedincreased
to$118atonnein2011,
comparedwith$100atonnein
2010,$80atonnein2009and
$242atonnein2008.
2
Shipment volumes of steel products for the operations of the company include certain
inter-segment shipments.
Including $4,767 million, $6,405 million, $3,169 million, $4,873 million and $5,875
million of sales to related parties for the years ended December 31, 2007, 2008, 2009,
2010 and 2011 respectively.
15
Key performance
indicators (KPIs)
continued
Average steel selling prices1
(US$/tonne)
2011
892
2010
781
2009
698
2008
920
2007
701
Flat Carbon Europe
2011
982
2010
821
2009
799
2008
1,018
2007
831
2011
937
2010
802
2009
743
2008
1,055
2007
774
AACIS
2011
736
2010
2009
608
506
2008
2007
804
585
2011
993
2010
832
2009
767
2008
1,155
2007
Over the last years, the impact
of changes in raw material spot
prices on the steel pricing has been
significantly increased. This is due
to a sharp increase in the absolute
value of raw material prices, but
also due to a changing pricing
16
961
model for iron ore shifting from
yearly benchmark pricing to
quarterly and lately even spot
pricing. As customers anticipate
changes in raw material costs
feeding into steel prices, this
raw material price volatility
has impacted buying behavior
of our customers leading to
more pronounced stocking and
destocking cycles, which again
affect steel prices.
Average steel selling price for
the group in 2011 increased 18%
compared with 2010, following the
increase in key raw material prices.
Overview
Operations
Mining operations
Iron ore production
(millions of metric tonnes)
2011
54.1 48.9 2009
37.7 15.1 52.75
2008
Total own mines2
19.6 68.55
43.8 20.9 64.75
Total strategic long-term contracts3,4
In2012,thecompanyis
targetinganincreaseof
approximately10%in
itsironoreproduction,
comparedwith2011.
tothesuppliesofArcelorMittal.
Wearealsoexpandingcapacity
ofexistingminesinCanada,
LiberiaandBrazil.Severalofour
steelplantsalsohaveinplace
off-takearrangementswith
mineralsupplierslocatednear
itsproductionfacilities,someof
whichareconsideredstrategic
long-termcontracts.
ArcelorMittalhadown
ironoreproductionof
54.1milliontonnes
in2011,anincrease
of11%,comparedwith
48.9milliontonnesin2010.
Coal production
(millions of metric tonnes)
2011
8.3 2010
7.1 0.5 7.6
2008
5.9 0.5 6.4
Total strategic long-term contracts6,7
Aswithironore,ArcelorMittal
sourcesapercentageofitscoking
coalfromitsowncoalminesin
Kazakhstan,RussiaandtheUnited
3
States.OurminesinKazakhstan
supplysubstantiallyallthe
requirementsforsteelmaking
operationsatArcelorMittal
Average steel selling prices are calculated as steel sales divided by steel shipments.
Steel sales exclude sales of coke, coal, direct reduced iron, pig iron, hot metal, slag,
by-products, energy, etc.
North America: includes ArcelorMittal’s share of production from Hibbing (US, 62.30%)
and Peña Colorada (Mexico, 50%).
North America: consists of long-term supply contracts with Cliffs Natural Resources Inc.
(‘Cliffs’). On April 8, 2011, ArcelorMittal announced that it had reached a negotiated
settlement with Cliffs regarding all pending contract disputes related to the procurement
of iron ore pellets for certain facilities in the US. As part of the settlement, Cliffs and
ArcelorMittal agreed to specific pricing levels for 2009 and 2010 pellet sales and related
volumes and, beginning in 2011, agreed to replace the previous pricing mechanism in one
of the parties’ two iron ore supply agreements with a world market-based pricing
mechanism. Accordingly, beginning first quarter of 2011, this excludes the long-term
supply contract for which the market-based pricing mechanism was reached.
Temirtau,whileourminesin
RussiaandtheUSsupplyother
steelplantswithinthegroup.
4
5
6
7
ArcelorMittalhadowncoking
coalproductionof8.3million
tonnesin2011,anincreaseof
20%,comparedwith7.0million
tonnesin2010.
Includes purchases made under the July 2010 interim agreement with Kumba,
South Africa.
Total of all finished production of fines, concentrate, pellets and lumps (includes
ArcelorMittal’s shares of production of less than wholly-owned mines and strategic
long-term contracts).
North America: strategic agreement – prices on a cost-plus basis.
Africa: long-term lease – prices on a cost-plus basis.
2
0.6 8.9
7.0 0.4 7.4
2009
1
ArcelorMittalsourcessignificant
portionsofitsironoreneeds
fromitsownminesinKazakhstan,
Ukraine,BosniaandHerzegovina,
Algeria,Canada,theUnitedStates,
MexicoandBrazil.During2011,
thecompany’sironoremining
complexinLiberiabecame
operationalandcontributed
Total own mines
Financials
2010
11.1 65.25
17
Board of directors
ArcelorMittal’s annual
Lakshmi N Mittal
Narayanan Vaghul
Antoine Spillmann
general meeting of
Lakshmi N Mittal, 61 and an Indian Narayanan Vaghul, 75 and an
Antoine Spillmann, 48 and a
shareholders on May 10, citizen, is the chairman and CEO of Indian citizen, has over 50 years’
Swiss citizen, worked for leading
2011 acknowledged the ArcelorMittal. Mr Mittal founded experience in the financial sector investment banks in London from
Mittal Steel in 1989, and guided its and was the chairman of ICICI
1986 to 2000. He is now an asset
expiration of the terms
development, culminating Group, a leading financial services
manager and executive partner
of office of the following strategic
in the merger in 2006 with Arcelor. group in India from 1985 to 2009. at the firm Bruellan Wealth
directors: Mr Lakshmi
He is a member of various boards
Mr Vaghul is chairman of the Indian Management, an independent asset
and trusts and also of the Indian
Institute of Finance Management
management company based in
N Mittal, Mr Antoine
Prime Minister’s Global Advisory
& Research and is also a board
Geneva. Mr Spillmann studied in
Spillmann, Mr Lewis
Council, Kazakhstan’s Foreign
member of Wipro Limited,
Switzerland and London, receiving
B Kaden and
Investors’ Council, World Economic Mahindra & Mahindra, Piramal
diplomas from the London Business
HRH Prince Guillaume
Forum’s International Business
Healthcare and Apollo Hospitals.
School in Investment Management
Council and World Steel
and Corporate Finance.
de Luxembourg.
Association’s (WSA) Executive
Wilbur L Ross, Jr
Committee. He has received
HRH Prince Guillaume
At the same meeting, the
numerous awards and honors such Wilbur L Ross, Jr, 74 and a US
shareholders re-elected
de Luxembourg
as Fortune’s 2004 ‘European
Mr Lakshmi N Mittal, Mr Antoine
Spillmann, Mr Lewis B Kaden
and HRH Prince Guillaume
de Luxembourg for a new term
of three years. The board of
directors proposed to elect
Mr Bruno Lafont as a new board
member, and the shareholders
elected him for a three-year term
on May 10, 2011. Mr Bruno
Lafont is considered an
independent director.
As a result of these changes,
the board of directors is
composed of ten directors, of
whom nine are non-executive
directors and seven are
independent directors. The
directors are: Mr Lakshmi N
Mittal, Ms Vanisha Mittal Bhatia,
Mr Antoine Spillmann, Mr Wilbur
L Ross, Mr Lewis B Kaden,
Mr Narayanan Vaghul, Mr Jeannot
Krecké, HRH Prince Guillaume
de Luxembourg, Ms Suzanne
P Nimocks and Mr Bruno Lafont.
The board of directors comprises
one executive director,
Mr Lakshmi N Mittal, the chairman
and chief executive officer of
ArcelorMittal. Mr Lewis B Kaden
is the lead independent director.
None of the members of the
board of directors, including
the executive director, have
entered into service contracts
with ArcelorMittal or any of
its subsidiaries providing for
benefits upon the termination
of their terms.
18
Businessman of the Year’, Financial
Times’ 2006 ‘Person of the Year’,
2007 Dwight D Eisenhower Global
Leadership Award and Forbes 2008
‘Lifetime Achievement Award’. In
October 2010, he was awarded
WSA’s medal for services to the
Association and for contributing
to the sustainable development
of the global steel industry.
Lewis B Kaden
Lewis B Kaden, 69 and a US citizen,
is the lead independent director of
ArcelorMittal. He has approximately
39 years of experience in corporate
governance, financial services,
dispute resolution and economic
policy. He is currently vice chairman
of Citigroup. Mr Kaden served as
a director of Bethlehem Steel
Corporation for ten years and is
currently chairman of the board of
directors of the Markle Foundation
and vice chairman of the Board of
Trustees of Asia Society.
Vanisha Mittal Bhatia
Vanisha Mittal Bhatia, 31 and an
Indian citizen, was appointed as
a member of the LNM Holdings
board of directors in June 2004.
Ms Vanisha Mittal Bhatia was
appointed to Mittal Steel’s board
of directors in December 2004.
She has a Bachelor of Arts degree
in Business Administration from the
European Business School and has
worked at Mittal Shipping Ltd,
Mittal Steel Hamburg GmbH, an
Internet-based venture capital fund,
within the procurement department
of Mittal Steel, in charge of a
cost-cutting project, and is currently
head of strategy for Aperam.
citizen, is the chairman and CEO
of WL Ross & Co. LLC, a merchant
banking firm, a position that he has
held since April 2000. WL Ross &
Co is part of Invesco Private Capital,
a listed company, of which Mr Ross
is Chairman. Mr Ross is also the
Chairman and CEO of Invesco
subsidiaries WLR Recovery Fund
L.P., WLR Recovery Fund II L.P., WLR
Recovery Fund III, WLR Recovery
Fund IV, WLR Recovery Fund V, Asia
Recovery Fund, Asia Recovery Fund
Co-Investment, Absolute Recovery
Hedge Fund and American Home
Mortgage Servicing Inc., none of
which are listed. Mr Ross is the
Chairman of Ohizumi
Manufacturing Company in Japan,
International Textile Group and
Diamond Shipping, which are
unlisted companies. Mr Ross is a
director of International Automotive
Components and Compagnie
Européenne de Wagons SARL
(Luxembourg), both non-listed
companies. Mr Ross is also a
director of the Yale School of
Management.
Jeannot Krecké
Jeannot Krecké, 61 and a
Luxembourg citizen, was appointed
as Luxembourg’s Minister of the
Economy and Foreign Trade and
Minister of Sport in 2004. As of
July 2004, he represents the
Luxembourg government at the
Council of Ministers of the
European Union in the internal
market and industry sections of its
competitiveness configuration. On
February 1, 2012, Jeannot Krecké
retired from government and
decided to end his active political
career in order to pursue a range
of different projects.
HRH Prince Guillaume de
Luxembourg, 48 and a Luxembourg
citizen, worked for five years at the
International Monetary Fund in
Washington, D.C., and spent two
years working for the Commission
of European Communities in
Brussels. Prince Guillaume headed a
governmental development agency,
Lux-Development, for 12 years.
Suzanne P Nimocks
Suzanne P Nimocks, 52 and a
US citizen, was a director (senior
partner) with McKinsey & Company
from 1999 to 2010 and was with
the firm in various other capacities
since 1989. Ms Nimocks is
currently a board member for
Encana Corporation and Rowan
Companies, Inc. both listed
companies, and Valerus, a private
company. In the non-profit sector,
she serves on the board of directors
of the Houston Zoo and she is
expected to assume the
chairmanship of its board of
directors on July 1, 2012.
Bruno Lafont
Bruno Lafont, 55 and a French
citizen, started his career at Lafarge
in 1983. On January 1, 2006, he
became chief executive officer and
in May 2007, he was appointed
chairman and chief executive
officer of the group. Mr Lafont is
Special Adviser to the Mayor of
Chongqing (China), President of the
EPE French Association (‘Enterprises
for Environment’), a board member
of EDF and a board member
of ArcelorMittal.
Overview
Operations
Mining operations
Financials
Left to right
Lakshmi N Mittal
Lewis B Kaden
Vanisha Mittal Bhatia
Narayanan Vaghul
Wilbur L Ross, Jr
Jeannot Krecké
Left to right
Antoine Spillmann
HRH Prince Guillaume de Luxembourg
Suzanne P Nimocks
Bruno Lafont
19
Senior
management
The strategic direction
Davinder Chugh
Lou Schorsch
Lakshmi N Mittal
of ArcelorMittal is the
Lakshmi N Mittal is the chairman
Davinder Chugh, member of
Lou Schorsch, member of
responsibility of the
and CEO of ArcelorMittal. Mr Mittal the Group Management Board,
the Group Management Board,
founded Mittal Steel in 1989, and responsible for shared services,
responsible for Flat Carbon
Group Management
guided its strategic development,
has over 33 years of experience
Americas, group strategy, CTO,
Board (GMB). The GMB
culminating in the merger in 2006 in the steel industry in general
members are elected
with Arcelor. He is a member of
management, materials purchasing, commercial coordination, global
by the board of directors various boards and trusts and also marketing, logistics, warehousing automotive and member of the IAC.
Dr Schorsch was elected to the
and the GMB is headed of the Indian Prime Minister’s Global and shipping. Mr Chugh is a
Advisory Council, Kazakhstan’s
member of the Investment
Group Management Board in May
by Lakshmi N Mittal as
Foreign Investors’ Council, World
Allocation Committee (‘IAC’).
2011. Prior to this appointment he
chief executive officer
Economic Forum’s International
Before becoming a senior executive had been president and chief
(CEO). The GMB is
Business Council and World Steel
vice president of ArcelorMittal, he
executive officer of Flat Carbon
Association’s (WSA) Executive
served as the CEO of Mittal Steel
Americas, a position established
supported by a strong
South Africa until 2006. Mr Chugh with the 2006 merger of Arcelor
team of 24 management Committee. He has received
numerous awards and honors
was involved in the turnaround and and Mittal Steel, as well as a
committee members,
such as Fortune’s 2004 ‘European
consolidation of the South African member of the ArcelorMittal
working towards
Businessman of the Year’, Financial operations of ArcelorMittal.
management committee.
Times’ 2006 ‘Person of the Year’,
delivering the best
2007 Dwight D Eisenhower Global Peter Kukielski
Gonzalo Urquijo
possible performance
Award and Forbes 2008
to all stakeholders while Leadership
Peter Kukielski, member of the
Gonzalo Urquijo, member of
‘Lifetime Achievement Award’. In
continuously working
Group Management Board, chief
October 2010, he was awarded
executive of Mining, was appointed responsible for AACIS (excluding
WSA’s medal for services to the
to improve health and
senior executive vice president and China and India), Distribution
Association and for contributing
safety results.
head of Mining in December 2008. Solutions, Tubular Products,
to the sustainable development
of the global steel industry.
Aditya Mittal
Aditya Mittal is CFO of
ArcelorMittal, and a member of
the Group Management Board
with additional responsibility for
Flat Carbon Europe, investor
relations and communications.
Prior to the merger to create
ArcelorMittal, Aditya Mittal held
the position of President and CFO
of Mittal Steel from October 2004
to 2006. In 2008, Mr Aditya Mittal
was awarded ‘European Business
Leader of the Future’ by CNBC
Europe. In 2011, he was also
ranked 4th in the ‘40 under 40’
list of Fortune magazine. He is a
member of the World Economic
Forum’s The Forum of Young Global Leaders, the Young
Presidents’ Organization, a board
member at the Wharton School
and PPR.
From left to right Lakshmi N Mittal,
Aditya Mittal, Davinder Chugh,
Peter Kukielski, Sudhir Maheshwari,
Lou Schorsch, Gonzalo Urquijo,
Michel Wurth
20
Mr Kukielski was previously
executive vice president and chief
operating officer at Teck Cominco
Limited. Prior to joining Teck
Cominco, he was chief operating
officer of Falconbridge Limited
before which he held senior
engineering and project
management positions with BHP
Billiton and Fluor Corporation.
Sudhir Maheshwari
Sudhir Maheshwari, member of
responsible for corporate finance,
M&A and risk management and
India and China operations, is also
alternate chairman of the corporate
finance and tax committee and
chairman of the risk management
committee. Mr Maheshwari was
previously a member of the
management committee of
ArcelorMittal, responsible for
finance and M&A. Prior to this, he
was managing director, business
development and treasury at Mittal
Steel from January 2005 until its
merger with Arcelor in 2006.
Mr Maheshwari also serves on
the board of directors of various
subsidiaries of ArcelorMittal.
corporate responsibility, IAC
chairman, was previously senior
executive vice president and CFO
of Arcelor, with responsibility for
finance, purchasing, IT, legal affairs,
investor relations, Arcelor
Distribution Solutions, and other
activities. Prior to that, Mr Urquijo
also held several other positions
within Arcelor, including deputy
senior executive vice president and
head of the functional directorates
of distribution.
Michel Wurth
Michel Wurth, member of the
Group Management Board,
responsible for Long Carbon
worldwide, was previously in charge
of Flat Carbon Europe and Global
R&D between 2006 and June 2011
as well as Distribution Solutions
between 2009 and June 2011.
Prior to this he was vice president
of the Group Management Board
of Arcelor and Deputy CEO, with
responsibility for Flat Carbon Steel
including auto, coordination Brazil,
R&D and NSC alliance. The creation
of Arcelor in 2002 led to Mr Wurth’s
appointment as senior executive
vice president and CFO of Arcelor.
Overview
Operations
Mining operations
Financials
Age1 Position
BhikamAgarwal
VijayBhatnagar
DavinderChugh
59 Executivevicepresident,headoffinance
64 Executivevicepresident,CEOIndiaandChina
55 MemberoftheGroupManagementBoard,responsibleforsharedservicesandmemberoftheinvestment
allocationcommittee
53 Executivevicepresident,CEOLongCarbonAmericas
59 Executivevicepresident,headofminingprojectsandexploration
53 Executivevicepresident,CEOFlatCarbonEurope
55 MemberoftheGroupManagementBoard,headofMining
48 MemberoftheGroupManagementBoard,responsibleforcorporatefinance,M&AandriskmanagementandIndia
andChinaoperations
35 CFO,memberoftheGroupManagementBoard,withadditionalresponsibilityforFlatCarbonEurope,investor
relationsandcommunications
61 Chairmanandchiefexecutiveofficer
62 Executivevicepresident,headofmarketingandcommercialcoordination
46 Executivevicepresident,CEOLongCarbonEurope(includingAnnaba,BosniaandHerzegovina,OstravaandSonasid)
54 Executivevicepresident,CEOUSA
62 MemberoftheGroupManagementBoard,responsibleforFlatCarbonAmericas,groupstrategy,CTO,research
anddevelopment,globalautomotiveandmemberoftheinvestmentallocationcommittee
53 Executivevicepresident,headofstrategy
54 Executivevicepresident,headofhumanresources
50 MemberoftheGroupManagementBoard,responsibleforAACIS(excludingChinaandIndia),Distribution
Solutions,TubularProducts,corporateresponsibility,investmentallocationcommitteechairman
57 MemberoftheGroupManagementBoard,responsibleforLongCarbonworldwide
JeffersondePaula
PhilduToit
RobrechtHimpe
PeterKukielski
SudhirMaheshwari
AdityaMittal
LakshmiNMittal
MichaelPfitzner
ArnaudPoupart-Lafarge
MichaelRippey
LouSchorsch
BillScotting
WillieSmit
GonzaloUrquijo
MichelWurth
1
Age on December 31, 2011
AdditionalmembersofthemanagementcommitteeincludeAugustoEspeschitdeAlmeida(CEOLongCarbonCentralandSouthAmerica),
BrianAranha(chiefmarketingofficer,globalautomotiveandFlatCarbonAmericas,commercialcoordination),BenjaminBaptista(CEOFlatSouth
America),BillChisholm(CEOArcelorMittalMexico),GregoryLudkovsky(globalresearchanddevelopment),Jean-LucMaurange(CEOFlatCarbon
Europe,businessdivisionsouthwest),NkuNyembezi-Heita(CEOArcelorMittalSouthAfrica),GeertVanPoelvoorde(CEOFlatCarbonEurope,
businessdivisionnorth),SanjaySamaddar(CEOFlatCarbonEurope,businessdivisioneastandCEOArcelorMittalPoland),JuergenSchachler
(CEOArcelorMittalDofasco),KleberSilva(miningoperations),PSVenkat(CEOLongCarbonNorthAmerica),MarcVereecke(chieftechnology
officer,withadditionalresponsibilityforin-housemanufacturingservices)andAlainLeGrix(CEODistributionSolutions).
Name
Management committee
21
We have quality
core assets
Quality is one of our three core values and quality underpins our core
assets, from steel plants to mines. Not only do our plants, which span
the globe, produce high‑quality steel, they are also cost‑competitive.
Our group is well diversified and we have a balanced portfolio of assets:
in 2011 our production facilities outside North America and Europe
generated around 40% of our steel‑based Ebitda. With production facilities
in 20 countries, we offer a broad range of finished and semi‑finished
carbon steel products. Our outstanding distribution network delivers
our quality products to customers around the world.
2011 Ebitda split by segment US$ millions
2,109
1,500
Flat Carbon Europe
1,866
Long Carbon
1,238
271
3,063
AACIS
Mining
Overview
Operations
Mining operations
Picture Luxembourg
Financials
23
Key operational
overview
Crude steel production (thousands of metric tonnes)
FCA
FCE
Long
AACIS
Total continuing operations
Discontinued operations
Total
Steel shipments* (thousands of metric tonnes)
FCA
FCE
Long
AACIS
Total
Average steel selling price (US$/tonne)
FCA
FCE
Long
AACIS
AMDS
Revenue (US$ millions)
FCA
FCE
Long
AACIS
AMDS
Mining
Holding and service companies and eliminations
Ebitda (US$ millions)
FCA
FCE
Long
AACIS
AMDS
Mining
Operating income (US$ millions)
FCA
FCE
Long
AACIS
AMDS
Mining
Average steel Ebitda/tonne (US$/tonne)
FCA
FCE
Long
AACIS
Total**
* As from January 1, 2010 the Steel Solutions and Services segment has been renamed
ArcelorMittal Distribution Solutions (AMDS). ArcelorMittal Distribution Solutions
shipments are eliminated in consolidation as they primarily represent shipments
originating from other ArcelorMittal operating subsidiaries.
24
2008
2009
26,476
34,338
25,198
15,118
101,130
2,197
103,327
2010
Q4 11
2011
16,556
22,752
18,901
13,411
71,620
1,616
73,236
23,101 6,063 6,277 5,866 6,009
30,026 7,631 7,870 7,390 6,619
22,550 6,059 6,414 5,611 5,474
14,906 3,706 3,830 3,493 3,579
90,583 23,459 24,391 22,360 21,681
2,046
–
–
–
–
92,629 23,459 24,391 22,360 21,681
24,215
29,510
23,558
14,608
91,891
–
91,891
25,810
33,512
27,115
13,296
99,733
1,958
101,691
16,121
21,797
19,937
11,769
69,624
1,447
71,071
21,028 5,563 5,520 5,708 5,458
27,510 7,384 7,166 6,385 6,188
23,148 5,872 6,167 5,984 5,846
13,266 3,142 3,304 3,005 3,065
84,952 21,961 22,157 21,082 20,557
1,729
–
–
–
–
86,681 21,961 22,157 21,082 20,557
22,249
27,123
23,869
12,516
85,757
–
85,757
920
1,018
1,055
804
1,155
974
698
799
743
506
767
710
781
821
802
608
832
773
Q1 11
830
928
902
691
973
862
Q2 11
961
1,026
973
768
1,040
956
Q3 11
910
1,021
967
771
1,010
940
868
954
906
713
948
882
25,761 12,310 17,684 4,939 5,567 5,499 5,030
38,300 19,981 25,550 7,812 8,551 7,696 7,003
32,230 16,741 21,315 5,889 6,664 6,676 5,936
13,047 7,577 9,706 2,570 2,857 2,619 2,733
23,126 13,524 15,744 4,261 5,019 4,899 4,876
3,557 2,573 4,380 1,128 1,657 1,678 1,805
(19,080) (11,685) (16,354) (4,415) (5,189) (4,853) (4,934)
116,942 61,021 78,025 22,184 25,126 24,214 22,449
892
982
937
736
993
910
21,035
31,062
25,165
10,779
19,055
6,268
(19,391)
93,973
4,800
685 1,555
528
6,448 1,946 2,015
471
6,635 1,647 2,075
480
3,866
898 1,135
254
1,103
(97)
457
127
1,468
656 2,263
607
(668)
(135)
(975)
115
23,652 5,600 8,525 2,582
924
420
237
2,109
636
367
26
1,500
610
438
338
1,866
462
284
238
1,238
115
48
(19)
271
835
842
779
3,063
(169)
9
115
70
3,413 2,408 1,714 10,117
1,646 (1,046)
691
307
2,774
(501)
534
106
4,120
(25) 1,004
210
3,129
312
681
125
185
(286)
166
84
1,132
234 1,625
493
(1,027)
(158) (1,096)
106
11,960 (1,470) 3,605 1,431
697
193
245
(106)
358
185
341
162
69
8
718
725
(176)
1
2,252 1,168
186
192
245
291
229
43
89
83
76
73
74
73
90
86
85
95
64
82
81
85
167
89
99
140
124
74
57
73
95
74
1
(569)
(107)
93
(109)
632
106
47
43
4
58
78
40
1,198
(324)
646
721
52
2,568
37
4,898
95
55
78
99
81
** Average steel Ebitda/tonne excludes mining and holding and service companies and eliminations.
Overview
Crude steel
production quarterly
by segment
Operations
Thousands of metric tonnes
Q1 08
Q2 08
Q3 08
7,980
9,653
7,099
4,346
29,078
656
29,734
7,685
10,062
7,488
4,390
29,625
656
30,281
7,339
9,476
6,871
4,258
27,944
509
28,453
2008
Q1 09
Q2 09
Q3 09
Q4 09
2009
3,472 26,476
5,147 34,338
3,740 25,198
2,124 15,118
14,483 101,130
376
2,197
14,859 103,327
Q4 08
3,499
4,565
3,947
2,903
14,914
317
15,231
3,332
4,059
4,857
3,227
15,475
387
15,862
4,323
6,718
4,741
3,382
19,164
460
19,624
5,402
7,410
5,356
3,899
22,067
452
22,519
16,556
22,752
18,901
13,411
71,620
1,616
73,236
Q1 10
Q2 10
Q3 10
Q4 10
2010
Q1 11
Q2 11
Q3 11
Q4 11
2011
5,679
7,406
5,738
3,684
22,507
546
23,053
5,854
8,507
6,015
3,885
24,261
588
24,849
5,932
7,107
5,472
3,726
22,237
454
22,691
5,636
7,006
5,325
3,611
21,578
458
22,036
23,101
30,026
22,550
14,906
90,583
2,046
92,629
6,063
7,631
6,059
3,706
23,459
–
23,459
6,277
7,870
6,414
3,830
24,391
–
24,391
5,866
7,390
5,611
3,493
22,360
–
22,360
6,009
6,619
5,474
3,579
21,681
–
21,681
24,215
29,510
23,558
14,608
91,891
–
91,891
Q4
Q1
2008
Source:ArcelorMittalestimates.
21,681
22,360
24,391
23,459
15,475
14,914
Q3
14,483
Q2
Q2
Q3
2009
Q2
Q3
2010
Q4
Q1
Q2
Q3
2011
Q4
Q1
21,578
22,237
Q1
24,261
22,507
Q4
19,164
22,067
27,944
29,625
29,078
Crude steel production 2008-2011 (thousands of metric tonnes)
Flat Carbon Europe
AACIS
Total
Crude steel production quarterly by segment 2010 and 2011
Financials
Flat Carbon Europe
AACIS
Total
Mining operations
Crude steel production quarterly by segment 2008 and 2009
25
Crude steel
production by
process and region
Crude steel production by process and segment 2011 (thousands of metric tonnes)
Flat Carbon Europe
AACIS
Total
Blast oxygen furnace
Electric arc furnace
Open hearth furnace
Total crude steel
20,023
27,508
7,294
11,089
65,914
4,192
1,464
14,890
2,085
22,631
–
538
1,374
1,434
3,346
24,215
29,510
23,558
14,608
91,891
Crude steel production by process 2011
Blast oxygen furnace
Open hearth furnace
Total
%
72
24
4
100
Crude steel production by region 2011
North America
South America
West Europe
Central and East Europe
CIS and Central Asia
Africa
Total
26
Source: ArcelorMittal estimates.
%
26
12
36
10
10
6
100
Overview
Steel shipments
quarterly by
segment
Operations
Q1 08
Q2 08
Q3 08
7,603
9,399
7,780
3,895
28,677
528
29,205
7,398
9,882
8,097
3,876
29,253
578
29,831
6,878
8,211
6,687
3,335
25,111
487
25,598
2008
Q1 09
Q2 09
Q3 09
Q4 09
2009
3,931 25,810
6,020 33,512
4,551 27,115
2,190 13,296
16,692 99,733
365
1,958
17,057 101,691
Q4 08
3,644
4,814
4,423
2,754
15,635
315
15,950
3,481
4,974
5,261
2,897
16,613
363
16,976
4,162
5,601
5,025
3,043
17,831
354
18,185
4,834
6,408
5,228
3,075
19,545
415
19,960
16,121
21,797
19,937
11,769
69,624
1,447
71,071
Q1 10
Q2 10
Q3 10
Q4 10
2010
Q1 11
Q2 11
Q3 11
Q4 11
2011
5,271
6,856
5,694
3,204
21,025
436
21,461
5,346
7,540
5,984
3,409
22,279
482
22,761
4,979
6,521
5,772
3,261
20,533
442
20,975
5,432
6,593
5,698
3,392
21,115
369
21,484
21,028
27,510
23,148
13,266
84,952
1,729
86,681
5,563
7,384
5,872
3,142
21,961
–
21,961
5,520
7,166
6,167
3,304
22,157
–
22,157
5,708
6,385
5,984
3,005
21,082
–
21,082
5,458
6,188
5,846
3,065
20,557
–
20,557
22,249
27,123
23,869
12,516
85,757
–
85,757
Q4
2008
Q1
Q3
2009
Q4
Q1
Q2
Q3
2010
Q4
Q2
Q3
2011
20,557
Q1
21,082
21,115
20,533
22,279
21,025
19,545
17,831
16,613
Q2
22,157
Q3
21,961
Q2
Q4
Q1
15,635
16,692
25,111
29,253
28,677
Steel shipments 2008-2011 (thousands of metric tonnes)
Flat Carbon Europe
AACIS
Total continuing operations*
Total
Steel shipments* quarterly by segment 2010 and 2011
Financials
Flat Carbon Europe
AACIS
Total
Mining operations
Steel shipments* quarterly by segment 2008 and 2009
SourceArcelorMittalestimates.
* ArcelorMittalDistributionSolutionsshipmentsareeliminatedinconsolidationasthey
primarilyrepresentshipmentsoriginatingfromotherArcelorMittaloperatingsubsidiaries.
27
Steel shipments by
product and region
Steel shipments by product 2011
Flat products
Long products
Pipes and tubes
Total
%
66
32
2
100
Steel shipments by product type 2011
Hot rolled products
Cold rolled products
Coated products
Slabs
Bars and rebars
Wire rod/wire products
Sections
Semis
Other products
Total
%
24
10
19
6
12
10
5
3
11
100
Steel shipments by region 2011
North America
South America
Europe
Africa
Asia, CIS and other
Total
28
%
25
13
46
6
10
100
Overview
Steel shipments
by product
and segment
Operations
%
37
16
20
18
9
100
%
35
13
37
4
11
100
Hot rolled products
Coated products
Slabs
Other products
Total
Flat Carbon Europe steel shipments by product type 2011
Financials
Hot rolled products
Coated products
Slabs
Other products
Total
Mining operations
Flat Carbon Americas steel shipments by product type 2011
Long Carbon steel shipments by product type 2011
Bars and rebars
Sections
Semis
Other products
Total
%
31
28
16
7
18
100
Hot rolled products
Coated products
Bars and rebars
Sections
Semis
Other products
Total
%
29
9
9
22
14
4
7
6
100
AACIS steel shipments by product type 2011
29
Steel shipments
by segment
and region*
Flat Carbon North America
Flat Carbon South America
Flat Carbon Europe
Long Carbon North America
Long Carbon South America
Long Carbon Europe
Others
Africa
Asia CIS
AACIS
South America
Europe
Stainless Steel (discontinuing operations)
Total
2008
2009
2010
Q1 11
Q2 11
Q3 11
Q4 11
2011
19,922
5,888
25,810
33,512
5,095
5,619
15,017
1,384
27,115
4,991
8,305
13,296
99,733
600
1,358
1,958
101,691
10,751
5,370
16,121
21,797
3,862
4,486
10,753
836
19,937
4,417
7,352
11,769
69,624
519
928
1,447
71,071
15,283
5,745
21,028
27,510
4,245
5,280
12,656
967
23,148
4,960
8,306
13,266
84,952
694
1,035
1,729
86,681
4,421
1,142
5,563
7,384
1,073
1,337
3,202
260
5,872
1,272
1,870
3,142
21,961
–
–
–
21,961
4,186
1,334
5,520
7,166
1,187
1,404
3,315
261
6,167
1,263
2,041
3,304
22,157
–
–
–
22,157
4,271
1,437
5,708
6,385
1,190
1,471
3,037
286
5,984
1,109
1,896
3,005
21,082
–
–
–
21,082
4,206
1,252
5,458
6,188
1,134
1,448
2,993
271
5,846
980
2,085
3,065
20,557
–
–
–
20,557
17,084
5,165
22,249
27,123
4,584
5,660
12,547
1,078
23,869
4,624
7,892
12,516
85,757
–
–
–
85,757
ArcelorMittal Zenica recognized
for their continued support of
local children’s summer camps
Every year, the Scouts of Zenica, in
Bosnia and Herzegovina, organize a
summer holiday for 800 children of
Zenica in the Scout Camp on Boracko
Lake, some 250km south of Zenica.
For the last five years, ArcelorMittal
Zenica and the ArcelorMittal
Foundation have supported this
initiative to promote sport, health
and culture among the children of
the local community.
30
* Figures exclude shipments from Distribution Solutions which are fully eliminated
on consolidation and Mining division.
Overview
Sales by destination
Operations
9,305
2,033
3,887
807
1,196
1,565
18,793
12,920
3,163
7,291
1,054
1,968
1,619
28,015
16,526
3,571
7,407
1,271
2,413
2,043
33,231
4,973
3,905
5,709
632
2,333
1,093
1,874
1,685
1,647
982
875
588
4,779
31,075
5,307
4,567
7,182
837
3,191
1,226
2,926
1,763
2,441
1,271
828
970
4,937
37,446
6,078
5,021
9,111
931
4,235
1,571
3,317
1,959
2,737
1,921
1,072
1,511
6,253
45,717
2,519
1,268
887
6,479
11,153
61,021
3,256
850
873
7,585
12,564
78,025
3,624
1,303
838
9,260
15,025
93,973
Year ended
December 31, 2011
Year ended
December 31, 2010
Financials
Americas
United States
Canada
Brazil
Argentina
Mexico
Others
Total Americas
Europe
France
Spain
Germany
Romania
Poland
Belgium
Italy
United Kingdom
Turkey
Czech Republic
Netherlands
Russia
Others
Total Europe
Asia and Africa
South Africa
China
India
Others
Total Asia and Africa
Total
Year ended
December 31, 2009
Mining operations
US$ millions
31
Steel Ebitda and
average steel
Ebitda/tonne
Steel Ebitda by segment and region (US$ millions)
2008
Flat Carbon Europe
Long Carbon Europe
Others
Africa
Asia CIS
AACIS
2,782
2,018
4,800
6,448
608
2,390
3,285
352
6,635
1,682
2,184
3,866
1,103
2009
22
663
685
1,946
(177)
1,485
236
103
1,647
188
710
898
(97)
2010
Q1 11
Q2 11
Q3 11
Q4 11
689
866
1,555
2,015
65
1,394
415
201
2,075
453
682
1,135
457
402
126
528
471
36
238
143
63
480
92
162
254
127
681
243
924
636
33
278
233
66
610
138
324
462
115
366
54
420
367
51
227
84
76
438
(7)
291
284
48
166
71
237
26
11
196
58
73
338
9
229
238
(19)
2011
1,615
494
2,109
1,500
131
939
518
278
1,866
232
1,006
1,238
271
Average steel Ebitda/tonne by segment* and region (US$/tonne)
Flat Carbon Europe
Long Carbon Europe
Others
Africa
Asia CIS
AACIS
Average steel Ebitda/tonne*
32
2008
2009
2010
Q1 11
Q2 11
Q3 11
Q4 11
2011
140
343
186
192
119
425
219
254
245
337
263
291
229
2
123
42
89
(46)
331
22
123
83
43
97
76
73
45
151
74
73
15
264
33
208
90
91
82
86
85
91
110
95
64
34
178
45
242
82
72
87
81
85
163
182
167
89
28
198
70
253
99
109
159
140
124
86
38
74
57
43
154
28
266
73
(6)
153
95
74
39
57
43
4
10
135
19
269
58
9
110
78
40
95
96
95
55
29
166
41
258
78
50
127
99
81
* Average steel Ebitda excludes mining and holding and services companies and eliminations.
Overview
Capital expenditure
Operations
Q1 11
Q2 11
Q3 11
Q4 11
2011
261
112
251
190
28
200
239
151
229
113
32
297
266
173
280
184
34
319
238
228
359
126
58
453
1,004
664
1,119
613
152
1,269
Financials
Flat Carbon Europe
Long Carbon
Asia, Africa and CIS
Mining
Mining operations
Capex by segment (US$ millions)
Growth and maintenance capex 2011 (%)
14
19 33
Maintenance
Steel
Growth
57
9 66
Mining
The following tables summarize the company’s principal growth and optimization projects involving significant capital expenditures
as at December 31, 2011.
Completed projects since 2011
Segment
Site
Project
Capacity/particulars
Mining
Mining
Princeton Coal (US)
Liberia mines
Underground mine expansion
Greenfield Liberia
Capacity increase by 0.7mt/year
Iron ore production of 4mt/year
(phase one)
Actual completion
Capex projects
Q1 11
Q3 111
On-going2 projects
Segment
Site
Project
Capacity/particulars
Actual completion
Mining
Andrade Mines
(Brazil)
ArcelorMittal Mines
Canada
ArcelorMittal Mines
Canada
ArcelorMittal Dofasco
(Canada)
ArcelorMittal Vega Do Sul
(Brazil)
João Monlevade
(Brazil)
Andrade expansion
Increase iron ore production to
3.5mt/year
Increase iron ore production by
0.8mt/year
Increase concentrator capacity by
8mt/year (16 to 24mt/year)
Optimize cost and increase galvalume
production by 0.1mt/year
Increase HDG capacity by 0.6mt/year
and CR capacity by 0.7mt/year
Increase in capacity of finished products
by 1.15mt/year
2012
Mining
Mining
1
Optimization of galvanizing
and galvalume operations
Expansion project
Wire rod production expansion
Ironoreminingproductioncommencedin2011with1.3milliontonnesproduced.The
targetedironoreproductionin2012is4milliontonnes.Aspreviouslyannounced,the
companyisconsideringaphasetwoexpansionthatwouldleadtoannualproductionof
15milliontonnesby2015.Thiswouldrequiresubstantialinvestmentinaconcentrator,
theapprovalprocessofwhichremainsinthefinalstages.
2
2013
2013
On hold
On hold
On hold
On-goingprojectsrefertoprojectsforwhichconstructionhasbegun(excludingvarious
projectsthatareunderdevelopment),orhavebeenplacedonholdpendingimproved
operatingconditions.
Flat Carbon
Americas
Flat Carbon
Americas
Long Carbon
Americas
Replacement of spirals
for enrichment
Expansion project
33
We have a
world‑class
mining business
We are investing in new mining projects around the world, and in
2011, began iron ore mining operations in Liberia. Since we signed
a Mineral Development Agreement with the Liberian government in
2005, we have rebuilt two elementary schools and one high school
in Yekepa. These facilities provide quality education for more than
1,000 students. In the city of Buchanan, Grand Bassa Community
College, built with the support of both ArcelorMittal Liberia and
ArcelorMittal Foundation, is the first post-secondary academy in the
country. Investing in education is important to ArcelorMittal – it is
at the core of our commitment to Liberia and our aim to build a local
management team to manage our Liberian operations in the future.
Iron ore reserves in 2011
3.8
* billions of tonnes.
bt*
Picture Liberia
Overview
Operations
Mining operations
Financials
35
Mining operations
overview
ArcelorMittal has built up a
world-class resource base
in iron and coking coal
through a combination
of acquisitions and
internal expansion. Our
geographically diverse
portfolio of mining assets
gives us the opportunity
to supply the developing
world as well as our own
steel facilities.
Since January 2011, the mining
business has been reported as
a separate segment. This has
enhanced our ability to maximize
returns, optimize the allocation
of capital and pursue our growth
plans – which involve a material
increase in production and sales
to third parties.
With major expansion and
development programs underway
in Canada, Brazil and Liberia (under
review), and increasing tonnages of
both iron ore and coal being marketed
externally, Mining is an important
growth engine for the group.
The group is on target to expand
annual iron ore production (including
off-take from long-term contracts)
to 100 million tonnes by 2015.
All raw materials that can practically
be sold outside the group are now
either marketed to third parties or
transferred to ArcelorMittal facilities
at market price. Production from
captive mines closely linked to one
of our steel facilities is transferred
internally on a cost-plus basis. In
2011, approximately 17%1 of the
group’s own iron ore production
was sold to external customers.
In 2011, ArcelorMittal’s own mines
produced 54.1 million tonnes of
iron ore1; our own mines and
strategic contracts produced
65.2 million tonnes of iron ore
and met 57% of the group’s
requirements. A total of 28.0 million
tonnes was shipped internally and
externally at market price2.
Production of coking coal hit 8.3
million tonnes3, an increase of 20%
as compared to 2010. Iron ore and
coal production is targeted to
increase by a further 10% in 2012.
1
2
36
Our ore reserve estimation4
and reporting processes are now
standardized and reserve estimates
will be updated and reported
annually. Following a full review of
our life-of-mine plans, ore reserves
and mineral resource estimates, our
iron ore reserves are now put at
3.8 billion tonnes. Our principal iron
ore mining operations are located
in Canada, the US, Brazil, Ukraine,
Kazakhstan and Liberia.
Our total metallurgical coal reserves
are estimated at 323 million tonnes.
The group’s coal mines are located
in Kazakhstan, Russia and the US.
Management strength
We can see a world of opportunities
in the Mining sector that is only
limited by access to capital and
to the people required to develop
these opportunities. Talent is key,
and with the strength and depth
that we now have, we have a
strong leadership team who has a
track record of operational
performance and successful project
execution. Our management bench
strength gives confidence that we
can execute on the development
options we have via our extensive
reserve base and scalable
infrastructure already in place.
The proven management team is
already demonstrating its ability to
deliver projects on time and within
budget, as is evidenced by our
successful development in Liberia.
We have the experience and the
appetite to undertake opportunities
in more challenging political and
geographical environments.
This experience is key to the
development of our Arctic project
on Baffin Island in Nunavut, Canada.
new quality products to meet
future demand. A key strength of
our commercial approach is that
we have at hand the technical and
market knowledge of the world’s
largest steelmaker available to us.
The Group has an unmatched R&D
facility that enables us to deliver
real value to both our internal and
external customers.
Growth plans
Capital expenditure in Mining more
than doubled to around $1.3 billion
in 2011 and is set to remain at a
high level as existing mines are
expanded and new ones developed.
The focus is firmly on growing
marketable volumes. In 2012,
production of both iron ore and
coking coal is planned to increase by
around 10%. However, this increase
is just one stop on the growth
journey. The near-term target is
to expand iron ore production to
100 million tonnes by 2015. That
includes ore sourced from strategic
contracts, forecast to be around
16 million tonnes by that date.
Within Mining’s own production,
marketable tonnages are expected
to double on 2010 levels. Coal
production is planned to rise to at
least 11 million tonnes over the
same period. In early 2011, Mining
completed the underground mine
expansion program at Princeton
Coal, increasing production capacity
by 0.7 million tonnes a year.
We are building a strong commercial
presence in global markets; a new
brand and a new choice. Our
strategy is to improve and develop
wn iron ore production excluding strategic long-term contract.
O
Market-priced tonnes represent amounts of iron ore and coal 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-priced tonnes
are transferred internally on a cost-plus basis.
3
4
wn coal production excluding strategic long-term contract.
O
ArcelorMittal’s reserve estimates may materially differ from mineral
quantities that it may be able to actually recover; ArcelorMittal’s
estimates of mine life may prove inaccurate; and market price
fluctuations and changes in operating and capital costs may
render certain ore reserves uneconomical to mine.
Overview
Operations
4
17
5
2
Other projects
While Baffinland is a key project
in the drive to sustain future
production growth beyond 2015,
Mining has an internal pipeline of
both brownfield and greenfield
projects currently under
consideration. With our significant
resource base, these projects offer
the potential over the medium-term
for an expansion in our own iron
ore production up to and beyond
100 million tonnes, before
including strategic contracts.
18
13
3
20
19
12
9
1
21
22
10 11
Non ferrous mine
Iron ore mine
Coal mine
8
6
Key assets and projects
Financials
Mining business portfolio
in Baffinland Iron Mines
Corporation. Baffinland owns the
Mary River project, a high-grade
iron ore reserve in northern Canada.
The acquisition consolidated
ArcelorMittal’s position as a major
iron ore producer. The existing
feasibility study has been updated
ahead of a board level construction
decision. In addition, a draft
environmental impact statement
has been submitted to regulators,
instituting the process of
environmental review. Constructive
talks are proceeding with local
stakeholders to finalize the Inuit
impact benefits agreement.
The Baffinland product will be a
high-quality, direct shipping mix
of premium lump ore and premium
fine ore sinter feed with only
crushing and screening required.
Our commercial strategy will
focus on building a customer base
in both the Atlantic and Pacific
growth markets to develop stable,
long-term demand.
Mining operations
production level. This is before
taking into account substantial
additional resources, which could
Liberia:
form the basis of a further doubling
ArcelorMittal Mines Canada:
The first shipments from our
of production over time. Scoping
greenfield iron ore project in Liberia Expansion of the Mont-Wright
mine and concentrator capacity will studies are underway to confirm
commenced in September 2011.
the potential for further mine
increase annual production of iron
This was the culmination of four
expansion in the Mont-Wright,
ore concentrate from 16 million
years’ development work that
Fire Lake and Mont-Reed areas.
tonnes to 24 million tonnes by
included the rehabilitation of
We are also actively exploring in
2013. The project cost is
260km of railway and upgrades
areas of inferred mineral resources.
approximately $1.2 billion. This
to the port and material handling
expansion capitalizes on existing
facilities at Buchanan. The mine
rail and port facilities, the quality of Andrade Mines, Brazil:
was brought into production on
Investment in the Andrade Mines
our product and our experienced
schedule and within budget. In
workforce. Its location offers easy in Brazil will lift production of iron
2012, production will be lifted to
around 4 million tonnes. Engineering access to US and European markets ore from 1.7 million tonnes a year
for the second phase of the project – an important consideration given to 3.5 million tonnes.
is now under way. If approved, this that the additional production will
Baffinland, Canada:
be sold on world markets. The
would lift production of iron ore
Mont-Wright operations have more In March 2011, ArcelorMittal, in
from 4 million tonnes a year of
partnership with Nunavut Iron Ore
than 2.0 billion tonnes of iron ore
direct shipment ore to 15 million
Acquisition Inc. (now WW Mines),
tonnes a year of concentrate from reserves – sufficient to support
acquired a 70% controlling interest
2015. It includes the construction a long mine life at the expanded
of a concentrator and a further
upgrade to the port facilities.
Key projects underway include:
15
7
14 16
Existing mines
New projects
2
3
4
5
6
Mexico Iron Ore
Las Truchas & Volcan 100%,
Peña Colorada 50%*
US Iron Ore Minorca 100%,
Hibbing 62.3%*
Princeton mines 100%
Canada Iron Ore 100%
Canada Iron Ore expansion
project (Mont-Wright)
Canada Iron Ore Baffinland 70%
7
8
9
10
11
12
13
14
15
Brazil Iron Ore Serra Azul 100%
Brazil Iron Ore Andrade and
expansion
Mauritania Iron Ore
Liberia Iron Ore 70%
Liberia Iron Ore phase two**
Algeria Iron Ore 2 mines 70%
Bosnia Iron Ore 51%
South Africa Iron Ore*
South Africa Manganese 50%
* IncludesshareofproductionnotcontrolledbyArcelorMittal.
16
17
18
19
20
21
22
Coal of Africa 15.9% interest
Ukraine Iron Ore 95%
Kazakhstan Coal
8 mines 100%
Kazakhstan Iron Ore
4 mines 100%
Russian Coal 2 mines 98%
India Iron Ore
India Steam Coal
1
**Underreview.
37
Iron ore production
by mine
Iron ore production by mine (millions of metric tonnes)
Mine
Kazakhstan
Lisakovsky
Kentobe
Atasu
Atansore
Ukraine
Kryviy Rih
Kryviy Rih
Algeria
Bosnia
Mexico
Peña Colorada1
Las Truchas
Volcan
Canada
QCM (Mont-Wright)
Wabush1
USA
Hibbing1
Minorca
Brazil
Serra Azul
Andrade
Liberia
Own production
South Africa2
Sishen
Thabazambi
Brazil
Andrade3
USA
Cleveland Cliffs4
Strategic contracts – iron ore
Type
Product
Open pit
Open pit
Underground
Open pit
Concentrate
Concentrate
Lump and fines
Lump and fines
Open pit
Underground
Open pit and
underground
Open pit
Concentrate
Lump and sinter feed
Fines
Open pit
Open pit
Concentrate and lump
Open pit
Concentrate and pellets
Concentrate,
lump and fines
Concentrate
Open pit
Open pit
Pellets
Open pit
Open pit
Pellets
Pellets
Open pit
Open pit
Lump and fines
Fines
Open pit
Open pit
Lump and fines
Lump and fines
Open pit
Fines
Open pit
Pellets
Total
1
Includes own share of production. On October 9, 2009, ArcelorMittal entered into an
agreement to divest its minority interest in Wabush Mines Canada. The transaction was
completed in February 2010.
2 Strategic agreement; prices on a cost-plus basis.
3 Operated by Vale; prices on a cost-plus basis until November 15, 2009. From November
16, 2009, the mine has been operated by ArcelorMittal and included as own production.
38
4
2008
2009
2010
Q1 11
Q2 11
Q3 11
Q4 11
2011
3.4
0.9
0.8
0.7
0.9
9.4
7.8
1.6
1.7
4.5
1.8
0.9
1.1
0.8
8.3
7.1
1.2
1.1
3.8
1.8
0.6
1.1
0.3
10.0
8.9
1.1
1.1
0.9
0.4
0.2
0.3
0.0
2.4
2.2
0.3
0.2
1.0
0.4
0.2
0.3
0.1
2.7
2.4
0.3
0.3
1.0
0.4
0.2
0.3
0.1
2.7
2.4
0.3
0.4
1.0
0.4
0.2
0.3
0.1
2.8
2.6
0.3
0.4
4.0
1.8
0.7
1.2
0.3
10.6
9.6
1.1
1.3
1.2
4.6
2.3
2.3
1.1
3.6
2.3
1.3
1.4
6.2
2.3
2.1
0.4
1.7
0.6
0.6
0.4
1.9
0.6
0.8
0.6
1.6
0.5
0.5
0.5
1.8
0.6
0.7
1.9
6.9
2.2
2.6
0.1
15.0
13.8
1.2
8.0
5.2
2.8
0.4
0.4
0.0
0.0
43.8
0.1
13.9
13.2
0.8
2.6
1.5
1.1
2.5
2.4
0.1
0.0
37.7
1.8
15.1
15.1
0.0
6.5
3.7
2.8
4.9
3.3
1.6
0.0
48.9
0.5
3.2
3.2
0.5
3.5
3.5
0.5
4.1
4.1
0.5
4.3
4.3
1.8
1.2
0.6
1.2
0.9
0.3
0.0
11.8
1.8
1.2
0.6
1.3
0.9
0.5
0.1
13.1
2.1
1.3
0.8
1.3
0.9
0.5
0.3
14.1
2.0
1.2
0.8
1.4
1.0
0.4
0.9
15.1
2.0
15.1
15.1
0.0
7.7
4.9
2.8
5.3
3.6
1.7
1.3
54.1
8.0
5.4
2.6
1.2
1.2
11.7
11.7
20.9
5.5
3.7
1.9
1.1
1.1
8.5
8.5
15.1
7.0
4.7
2.4
0.0
0.0
12.5
12.5
19.6
1.8
1.3
0.6
0.0
0.0
0.0
0.0
1.8
1.8
1.3
0.6
0.0
0.0
0.9
0.9
2.8
1.4
1.2
0.2
0.0
0.0
1.8
1.8
3.3
1.3
1.3
0.0
0.0
0.0
1.9
1.9
3.2
6.5
5.1
1.4
0.0
0.0
4.6
4.6
11.1
64.7
52.7
68.5
13.6
15.9
17.4
18.3
65.2
Includes two long-term supply contracts with Cleveland Cliffs for periods prior to 2011.
On April 8, 2011, ArcelorMittal announced that it reached a negotiated settlement with
Cliffs Natural Resources Inc. (‘Cliffs’) regarding all pending contract disputes related to the
procurement of iron ore pellets for certain facilities in the US. As part of the settlement, Cliffs
and ArcelorMittal agreed to specific pricing levels for 2009 and 2010 pellet sales and related
volumes. Beginning first quarter of 2011, excludes long-term supply contract for which
settlement was reached.
Overview
Iron ore production
by region and
shipment
Operations
Mine
Asia, CIS and other
Type
Product
2010
Q1 11
Q2 11
Q3 11
Q4 11
2011
27.7
0.4
1.2
1.7
20.2
2.5
1.1
1.1
27.8
4.9
1.4
1.1
6.7
1.2
0.4
0.2
7.2
1.3
0.4
0.4
7.8
1.3
0.6
0.7
8.0
1.4
0.5
1.3
29.7
5.3
1.9
2.6
Concentrate,
lump and fines
12.8
12.8
13.8
3.3
3.7
3.7
3.9
14.6
Open pit
Open pit
Open pit
Pellets
Lump and fines
Lump and fines
43.8
11.7
1.2
8.0
37.7
8.5
1.1
5.5
48.9
12.5
0.0
7.0
11.8
0.0
0.0
1.8
13.1
0.9
0.0
1.8
14.1
1.8
0.0
1.4
15.1
1.9
0.0
1.3
54.1
4.6
0.0
6.5
20.9
64.7
15.1
52.7
19.6
68.5
1.8
13.6
2.8
15.9
3.3
17.4
3.2
18.3
11.1
65.2
2008
2009
2010
Q1 11
Q2 11
Q3 11
Q4 11
2011
6.4
12.4
21.6
7.5
2.7
11.4
40.5
20.9
11.7
1.2
8.0
61.4
5.4
17.2
17.1
3.1
2.3
11.6
39.7
15.3
8.5
1.3
5.5
55.0
7.0
18.2
21.6
6.1
3.8
11.6
46.7
19.6
12.5
0.0
7.0
66.3
1.1
4.8
3.7
0.3
0.9
2.5
9.6
1.8
0.0
0.0
1.8
11.5
1.5
5.5
6.2
2.4
1.1
2.7
13.2
2.8
0.9
0.0
1.8
15.9
2.1
4.6
6.9
2.6
1.4
2.9
13.5
3.3
1.8
0.0
1.4
16.81
4.4
4.1
6.8
2.6
1.1
3.2
15.3
3.2
1.9
0.0
1.3
18.5
9.0
19.0
23.6
7.9
4.4
11.3
51.6
11.1
4.6
0.0
6.5
62.7
Iron ore shipment (millions of metric tonnes)
External sales
Market priced
Captive (cost-plus basis)
Long Carbon
AACIS
Sales
Strategic contracts
Long Carbon
AACIS
Total
1
4
IncludesAndrademineoperatedbyValeuntilNovember15,2009:pricesonacost-plusbasis.
FromNovember16,2009theminehasbeenoperatedbyArcelorMittalandincludedascaptive.
5 IncludespurchasesmadeunderJuly2010interimagreementwithKumba(SouthAfrica).
Note:Therearethreecategoriesofsales:
1)‘Externalsales’:minedproductsoldtothirdpartiesatmarketprice;
2)‘Market-pricedtonnes’:internalsalesofminedproducttoArcelorMittalfacilitiesat
prevailingmarketprices;
3)‘Cost-plustonnes’–internalsalesofminedproducttoArcelorMittalfacilitiesonacost-plus
basis.Thedeterminantofwhetherinternalsalesaretransferredatmarketpriceorcost-plusis
whetherornottherawmaterialcouldpracticallybesoldtothirdparties(i.e.thereisapotential
marketfortheproductandlogisticsexisttoaccessthatmarket).
Totalofallfinishedproductionoffines,concentrate,pelletsandlumps.
IncludesownminesandshareofproductionfromHibbing(US–62.30%),Peña
(Mexico–50%)andWabush(Canada–28.7%).OnOctober9,2009,ArcelorMittal
enteredintoanagreementtodivestitsminorityinterestinWabushMinesCanada.
ThetransactionwascompletedinFebruary2010.
3 Includestwolong-termsupplycontractswithClevelandCliffsforperiodspriorto2011.
OnApril8,2011,ArcelorMittalannouncedthatithadreachedanegotiatedsettlement
withCliffsNaturalResourcesInc.(‘Cliffs’)regardingallpendingcontractdisputesrelated
totheprocurementofironorepelletsforcertainfacilitiesintheUS.Aspartofthe
settlement,CliffsandArcelorMittalagreedtospecificpricinglevelsfor2009and2010
pelletsalesandrelatedvolumesand,beginningin2011,toreplacethepreviouspricing
mechanisminoneoftheparties’ironoresupplyagreementswithaworldmarket-based
pricingmechanism.Accordinglyasfromthefirstquarterof2011,thisexcludesthe
long-termsupplycontractforwhichsettlementwasreached.
2
2009
Lump and sinter feed
Lump and fines
Lump and fines
Own production
North America3
South America4
Africa5
Strategic contracts
– iron ore
Total
2008
Open pit
Open pit
Open pit
Open pit/
underground
Open pit/
underground
Financials
North America2
South America4
Europe
Africa
Mining operations
Iron ore production by region1 (millions of metric tonnes)
39
Coal production by
mine and by region
and shipment
Coal production by mine (millions of metric tonnes)
Mine
US – Midvol/Concept
Russia – Kuzbass
Kazakhstan – Karaganda*
Own production
South Africa – Tshikondeni1
US – Madison2
Strategic contracts1,2
Total
1
2
Includes long-term lease – prices on a cost-plus basis.
Includes strategic agreement – prices on a cost-plus basis.
2008
2009
2010
Q1 11
Q2 11
Q3 11
Q4 11
2011
0.84
0.96
4.11
5.90
0.25
0.29
0.54
6.44
2.09
1.12
3.93
7.14
0.26
0.19
0.44
7.59
2.25
1.00
3.70
6.96
0.21
0.22
0.43
7.39
0.55
0.20
1.18
1.93
0.07
0.06
0.12
2.05
0.61
0.32
1.13
2.07
0.09
0.08
0.17
2.23
0.57
0.38
1.15
2.10
0.07
0.05
0.12
2.22
0.69
0.38
1.15
2.22
0.07
0.14
0.21
2.43
2.43
1.28
4.62
8.32
0.30
0.32
0.62
8.94
* Includes eight mines – Kostenko, Kuzembaev, Saranskaya, Abaiskaya, Kazakhstanskaya, Lenina,
Shaktanskaya, Tenteskaya.
Coal production by region (millions of metric tonnes)
North America
Asia, CIS and other
Own production
North America1
Africa2
Strategic contracts1,2
Total
1
Includes strategic agreement – prices on a cost-plus basis.
2
2008
2009
2010
Q1 11
Q2 11
Q3 11
Q4 11
2011
0.84
5.07
5.90
0.29
0.25
0.54
6.44
2.09
5.06
7.14
0.19
0.26
0.44
7.59
2.25
4.71
6.96
0.22
0.21
0.43
7.39
0.55
1.38
1.93
0.06
0.07
0.12
2.05
0.61
1.45
2.07
0.08
0.09
0.17
2.23
0.57
1.53
2.10
0.05
0.07
0.12
2.22
0.69
1.53
2.22
0.14
0.07
0.21
2.43
2.43
5.90
8.32
0.32
0.30
0.62
8.94
Includes long-term lease – prices on a cost-plus basis.
Coal shipment (millions of metric tonnes)
External sales
Market-priced
Captive (cost-plus basis)
AACIS
Sales
Strategic contracts
AACIS
Total
There are three categories of sales:
1) ‘External sales’: mined product sold to third parties at market price;
2) ‘Market-priced tonnes’: internal sales of mined product to ArcelorMittal facilities at
prevailing market prices;
40
2008
2009
2010
Q1 11
Q2 11
Q3 11
Q4 11
2011
1.44
1.49
3.38
3.38
6.31
0.54
0.29
0.25
6.86
1.96
1.82
3.26
3.26
7.03
0.44
0.19
0.26
7.47
2.12
1.26
3.17
3.17
6.55
0.43
0.22
0.21
6.98
0.81
0.32
0.89
0.89
2.02
0.12
0.06
0.07
2.14
0.95
0.35
0.77
0.77
2.06
0.17
0.09
0.08
2.23
0.80
0.42
0.83
0.83
2.05
0.12
0.05
0.07
2.17
0.94
0.35
0.82
0.82
2.11
0.21
0.14
0.07
2.31
3.49
1.43
3.31
3.31
8.23
0.62
0.34
0.28
8.85
3) ‘Cost-plus tonnes’ – internal sales of mined product to ArcelorMittal facilities on a cost-plus
basis. The determinant of whether internal sales are transferred at market price or cost-plus is
whether or not the raw material could practically be sold to third parties (i.e. there is a potential
market for the product and logistics exist to access that market).
Overview
Raw material
consumption
Operations
Consumption
2009
2010
2011
123
49
33
40
89
36
26
30
115
44
29
39
111
45
29
39
* Includescoalonlyforthesteelmakingprocessandexcludessteamcoalforpowergeneration.
Financials
Iron ore
PCI and coal*
Coke
Scrap and DRI
2008
Mining operations
Raw material consumption (millions of metric tonnes)
Improving working environments
In order to promote occupational
health, safety and hygiene, the
corporate health and safety team
has been working in collaboration
with educational institutions to
develop specific training sessions
aimed at raising awareness on the
importance of creating a healthy
working environment. The training
is offered by the University of Illinois
in Chicago, US, and is comprised of
three consecutive modules which
take into account both the steel
and mining segments.
Left Luxembourg
41
Iron ore reserves
and resources
Iron ore reserves and resources 2011
The table below details ArcelorMittal’s estimated iron ore reserves and resources as at December 31, 2011.
Total proven and probable ore reserves
Millions of
metric tonnes
% Fe
Canada (excluding Baffinland)
Baffinland – Canada
Minorca – US
Hibbing – US
Mexico (excluding Peña Colorada)
Peña Colorada – Mexico
Brazil
Liberia
Algeria1
Bosnia
Ukraine open pit
Ukraine underground
Kazakhstan open pit
Kazakhstan underground
Total
1
1,965
375
159
387
108
182
131
14
–
35
268
25
154
37
3,840
28.8
64.7
23.1
19.0
31.0
27.0
57.8
59.5
–
45.8
34.0
55.0
40.1
42.2
33.4
lthough both the Ouenza and Boukhadra mines have been producing iron ore for several decades, no
A
iron ore reserves are reported for these mines in 2011 due to material deficiencies in the drilling data
recording and archiving process. ArcelorMittal intends to conduct drilling campaigns in 2012
Measured and indicated resources
Millions of
metric tonnes
% Fe
4,862
41
41
–
51
66
321
427
–
–
823
43
1,022
456
8,153
29.7
66.0
22.9
–
30.2
28.0
38.0
47.5
–
–
37.0
55.0
35.0
51.0
33.8
Inferred resources
Millions of
metric tonnes
1,066
444
90
–
88
–
130
2,182
95
–
–
–
30
4,125
% Fe
29.5
65.0
22.9
–
28.0
–
37.0
40.0
53.0
–
–
–
–
51.0
39.6
at the two mines in accordance with industry best practices in order to provide the
proper support for ore reserve estimates by the end of 2012.
Iron ore reserves by country
Country
Canada
US
Mexico
Brazil
Liberia
Bosnia
Ukraine
Kazakhstan
Total
Reserves are the part of a mineral deposit that could be economically and legally extracted
or produced at the time of the reserve determination. The demonstration of economic viability
is established through the application of a life-of-mine plan for each operation or project
providing a positive net present value on a cash-forward looking basis.
1)The estimates of proven and probable ore reserves and mineral resources at our mines
and projects included in this fact book have been prepared by ArcelorMittal experienced
engineers and geologists. Marshall Miller & Associates, Inc. prepared the estimates of reserves
for our Princeton underground and open pit operations. The reserve calculations were prepared
in compliance with the requirements of Industry Guide 7 and the mineral resource estimates
were prepared in accordance with the requirements of National Instrument NI43-101.
42
%
61
14
8
3
–
1
8
5
100
2) ArcelorMittal owns less than 100% of certain mining operations; reserve and resource
estimates have not been adjusted to reflect lower ownership interests.
3)Cautionary note concerning reserve and resource estimates:
With regard to ArcelorMittal’s reported resources, investors are cautioned not to assume that
any part or all of ArcelorMittal’s estimated mineral deposits that constitute either ‘measured
mineral resources’, ‘indicated mineral resources’ or ‘inferred mineral resources’ (calculated in
accordance with the guidelines set out in Canadian National Instrument 43-101) will ever be
converted into reserves. There is a particularly great deal of uncertainty as to the existence of
‘inferred mineral resources’ as well as with regard to their economic and legal feasibility and it
should not be assumed that all or part of an ‘inferred mineral resource’ will ever be upgraded
to a higher category.
Overview
Coal reserves
and resources
Operations
The table below details ArcelorMittal’s estimated coal reserves and resources as at December 31, 2011.
Total proven and probable reserves
Wet recoverable
Millions of
millions of
metric tonnes
metric tonnes1
1
110
182
31
323
70
80
20
170
92
588
226
906
50
279
143
472
Inferred resources
Wet recoverable
Millions of
millions of
metric tonnes
metric tonnes1
4
8
32
44
2
5
20
27
Financials
Princeton – US
Kazakhstan
Kuzbass – Russia
Total
Measured and indicated resources
ROM
Wet recoverable
millions of
millions of
metric tonnes
metric tonnes1
Mining operations
Coal reserves and resources 2011
ashedordirectlyshippedsaleabletonnage.Thistonnagedoesnotincludetheproductionin
W
Kazakhstanofapproximately2milliontonnesannuallyand30milliontonnesforthelifeofthe
Kazakhstanminesofrun-of-minehighashcoalwhichissoldinternally.
Coal reserves by country
Reservesarethepartofamineraldepositthatcouldbeeconomicallyandlegallyextracted
orproducedatthetimeofthereservedetermination.Thedemonstrationofeconomicviability
isestablishedthroughtheapplicationofalife-of-mineplanforeachoperationorproject
providingapositivenetpresentvalueonacash-forwardlookingbasis.
1)Theestimatesofprovenandprobableorereservesandmineralresourcesatourmines
andprojectsincludedinthisfactbookhavebeenpreparedbyArcelorMittalexperienced
engineersandgeologists.MarshallMiller&Associates,Inc.preparedtheestimatesof
reservesforourPrincetonundergroundandopenpitoperations.Thereservecalculations
werepreparedincompliancewiththerequirementsofIndustryGuide7andthemineral
resourceestimateswerepreparedinaccordancewiththerequirementsofNational
InstrumentNI43-101.
%
34
56
10
100
Country
US
Kazakhstan
Russian
Total
2)ArcelorMittalownslessthan100%ofcertainminingoperations;reserveandresource
estimateshavenotbeenadjustedtoreflectlowerownershipinterests.
3)Cautionarynoteconcerningreserveandresourceestimates:
WithregardtoArcelorMittal’sreportedresources,investorsarecautionednottoassumethat
anypartorallofArcelorMittal’sestimatedmineraldepositsthatconstituteeither‘measured
mineralresources’,‘indicatedmineralresources’or‘inferredmineralresources’(calculatedin
accordancewiththeguidelinessetoutinCanadianNationalInstrument43-101)willeverbe
convertedintoreserves.Thereisaparticularlygreatdealofuncertaintyastotheexistenceof
‘inferredmineralresources’aswellaswithregardtotheireconomicandlegalfeasibilityandit
shouldnotbeassumedthatallorpartofan‘inferredmineralresource’willeverbeupgraded
toahighercategory.
43
We are delivering
cost improvement
Picture South Africa
Overview
2011
4.0
2010
3.1
2009
2.7
2008
0.2
Operations
Annualized management gains US$ billions
Mining operations
Financials
The steel industry is highly competitive – and we recognize that in order to
maintain our leading position in the industry, we must remain competitive on
costs. Across the group, we make the most of our scale and global footprint
to share initiatives that will reduce fixed costs as well as contribute to more
efficient operations. Known as our management gains program, we believe in
encouraging our employees at all levels to share their ideas on performance
and opportunities for improvements. Since 2008, this program has generated
$4 billion of cost savings, with a further $0.8 billion targeted in the year
ahead. Together with the $1 billion asset optimization plan launched in
September 2011, we therefore have a detailed strategy to support
sustainable Ebitda and ensure that the group remains highly cost‑competitive.
45
Number of
employees
Number of employees1 according to segments
Segments
Flat Carbon Europe
AACIS (Asia, Africa and CIS)
Mining
Other activities
Continuing operations
Total
2008
2009
2010
2011
28,311
71,192
70,864
67,582
18,871
44,992
1,640
303,452
12,415
315,867
26,813
58,965
61,629
63,440
17,409
39,764
2,548
270,568
11,135
281,703
30,109
59,759
57,937
60,318
16,561
36,428
1,720
262,832
10,979
273,811
31,566
62,130
53,558
57,774
16,998
36,873
1,624
260,523
–
260,523
Allocation of employees1 at December 31, 2011 according to geographic location
Continuing operations
EU272
Other European countries3
North America
South America
Asia
Middle East and Africa
Total
2011
97,619
41,611
36,662
22,679
41,565
20,387
260,523
1Full-time
equivalent.
includes Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,
Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden
and the United Kingdom.
3Other European countries include Bosnia, Croatia, Macedonia, Norway, Russia, Serbia,
Switzerland, Turkey and the Ukraine.
2EU27
46
%
37
16
14
9
16
8
100
Overview
Key financial
and operational
information
Distribution
Solutions
Total
21,035
911
–
1,198
5.7%
2,109
10.0%
664
31,062
1,681
143
(324)
-1.0%
1,500
4.8%
1,004
25,165
1,183
37
646
2.6%
1,866
7.4%
1,119
10,779
517
–
721
6.7%
1,238
11.5%
613
6,268
495
40
2,568
41.0%
3,063
48.9%
1,269
19,055
179
–
52
0.3%
271
1.4%
152
93,973
5,000
219
4,898
5.2%
10,117
10.8%
4,838
24,215
22,249
892
31,566
29,510
27,123
982
62,130
23,558
23,869
937
53,558
14,608
12,516
736
57,774
NA
NA
NA
36,873
NA
18,360
993
16,998
91,891
85,757
910
260,523
17,684
864
691
3.9%
1,555
8.8%
574
25,550
1,481
534
2.1%
2,015
7.9%
792
21,315
1,071
1,004
4.7%
2,075
9.7%
687
9,706
454
681
7.0%
1,135
11.7%
515
4,380
638
1,625
37.1%
2,263
51.7%
525
15,744
290
166
1.1%
457
2.9%
124
78,025
4,920
3,605
4.6%
8,525
10.9%
3,308
23,101
21,028
781
30,109
30,026
27,510
821
59,759
22,550
23,148
802
57,937
14,906
13,266
608
60,318
NA
NA
NA
36,428
NA
18,173
832
16,561
90,583
84,952
773
262,832
12,310
1,025
(1,046)
-8.5%
685
5.6%
463
19,981
1,505
(501)
-2.5%
1,946
9.7%
937
16,741
1,354
(25)
-0.1%
1,647
9.8%
532
7,577
423
312
4.1%
898
11.9%
278
2,573
391
234
9.1%
656
25.5%
333
13,524
356
(286)
-2.1%
(97)
-0.7%
131
16,556
16,121
698
26,813
22,752
21,797
799
58,965
18,901
19,937
743
61,629
13,411
11,769
506
63,440
NA
NA
NA
39,764
NA
16,794
767
17,409
71,620
69,624
710
270,568
25,761
1,072
1,646
6.4%
4,800
18.6%
930
38,300
1,924
2,774
7.2%
6,448
16.8%
1,443
32,230
1,716
4,120
12.8%
6,635
20.6%
1,159
13,047
445
3,129
24.0%
3,866
29.6%
737
3,557
336
1,132
31.8%
1,468
41.3%
614
23,126
201
185
0.8%
1,103
4.8%
280
116,942
5,759
11,960
10.2%
23,652
20.2%
5,381
26,476
25,810
920
28,311
34,338
33,512
1,018
71,192
25,198
27,115
1,055
70,864
15,118
13,296
804
67,582
NA
NA
NA
44,992
NA
19,143
1,155
18,871
101,130
99,733
974
303,452
uring 2011, the company recorded restructuring charges of $219 million consisting
D
of costs associated with the implementation of the company’s asset optimization plan
primarily impacting Flat Carbon Europe and Long Carbon Europe operations, as well
as various Distribution Solutions entities.
2 During 2009, the company recorded an exceptional gain of $380 million relating to reversal
of litigation costs previously booked in the fourth quarter of 2008 following the Paris Court
of Appeals decision to reduce the fine imposed on certain French distribution subsidiaries of
ArcelorMittal by the French Competition Authority from €302 million ($441 million) to
€42 million ($61 million). This gain was offset by exceptional charges amounting to
$2.4 billion pre-tax related primarily to write-downs of inventory ($2.1 billion) and
provisions for workforce reduction ($0.3 billion).
61,021
5,125
(1,470)
-2.4%
5,600
9.2%
2,709
•Ebitda defined as operating income plus depreciation, impairment expenses
and exceptional items.
•Some inter-segment sales and intra-segment sales have not been eliminated.
•Some inter-company shipments are not eliminated.
•Margin analysis calculated on the unrounded values.
• Total column includes holding companies and service companies and eliminations.
Mining
AACIS
Long Carbon
Americas
and Europe
Financials
1
Flat Carbon
Europe
Mining operations
2011
Financial information
Sales
Depreciation and impairment
Restructuring charges1
Operating (loss)/income
Operating margin (as a percentage of sales)
Ebitda
Ebitda margin (as a percentage of sales)
Capital expenditure
Operational information
Crude steel production (millions of metric tonnes)
Steel shipments (millions of metric tonnes)
Employees
2010
Sales
Operating income
Ebitda
Capital expenditure
Employees
2009
Sales
Operating (loss)/income2
Ebitda
Capital expenditure
Operational Information
Employees
2008
Sales
Operating income
Ebitda
Capital expenditure
Employees
Flat Carbon
Americas
Operations
US$ millions unless otherwise specified
47
Consolidated
statements
of operations
ArcelorMittal and subsidiaries
(millions of US dollars, except share and per share data)
Sales (including 4,873 and 5,875 of sales to related parties for 2010 and 2011, respectively)
Cost of sales (including depreciation and impairment of 4,920 and 5,000 and 2,448 and 2,897 of purchases
from related parties for 2010 and 2011, respectively)
Gross margin
Selling, general and administrative expenses
Operating income (loss)
Income from investments in associates and joint ventures
Financing costs – net
Income (loss) before taxes
Income tax expense (benefit)
Net income from continuing operations (including non-controlling interests)
Discontinued operations, net of tax
Net income (including non-controlling interests)
Net income attributable to equity holders of the parent:
Net income from continuing operations
Net income from discontinued operations
Net income attributable to equity holders of the parent
Net income from continuing operations attributable to non-controlling interests
Earnings per common share (in US dollars)
Basic
Diluted
Earnings per common share – continuing operations (in US dollars)
Basic
Diluted
Earnings per common share – discontinued operations (in US dollars)
Basic
Diluted
Weighted average common shares outstanding (in millions)
Basic
Diluted
48
Year ended
December 31, 2010
Year ended
December 31, 2011
78,025
93,973
71,084
6,941
3,336
3,605
451
(2,200)
1,856
(1,479)
3,335
(330)
3,005
85,519
8,454
3,556
4,898
620
(2,838)
2,680
882
1,798
461
2,259
3,246
(330)
2,916
89
3,005
1,802
461
2,263
(4)
2,259
Year ended
December 31, 2010
Year ended
December 31, 2011
1.93
1.72
1.46
1.19
2.15
1.92
1.16
0.90
(0.22)
(0.20)
0.30
0.29
1,512
1,600
1,549
1,611
Overview
Quarterly
condensed
income statement
Q1 10
78,025
(4,920)
3,605
4.6%
(1,749)
1,856
1,479
-79.7%
628
(40)
588
52
640
0.42
0.33
1,510
1,573
0.1875
1,701
9.8%
1,658
(79)
1,579
127
1,706
1.13
0.75
1,510
1,599
0.1875
2,809
13.9%
1,328
(16)
1,312
38
1,350
0.89
0.89
1,510
1,537
0.1875
2,162
11.0%
(279)
46
(233)
(547)
(780)
(0.51)
(0.51)
1,515
1,516
0.1875
1,853
9.0%
3,335
(89)
3,246
(330)
2,916
1.93
1.72
1,512
1,600
0.75
8,525
10.9%
0.03
0.03
1,510
1,573
0.09
0.08
1,510
1,599
0.02
0.02
1,510
1,537
(0.36)
(0.36)
1,515
1,516
(0.22)
(0.20)
1,512
1,600
0.39
0.30
1,510
1,573
1.04
0.67
1,510
1,599
0.87
0.87
1,510
1,537
(0.15)
(0.15)
1,515
1,516
2.15
1.92
1,512
1,600
Q3 11
Q4 11
2011
25,126
(1,161)
2,252
9.0%
(615)
1,637
(61)
3.7%
24,214
(1,240)
1,168
4.8%
(386)
782
(154)
19.7%
22,449
(1,448)
47
0.2%
(239)
(192)
(833)
-433.9%
93,973
(5,000)
4,898
5.2%
(2,218)
2,680
(882)
32.9%
619
(11)
608
461
1,069
0.69
0.69
1,549
1,550
0.1875
2,582
11.6%
1,576
(41)
1,535
–
1,535
0.99
0.93
1,549
1,638
0.1875
3,413
13.6%
628
31
659
–
659
0.43
0.19
1,549
1,611
0.1875
2,408
9.9%
(1,025)
25
(1,000)
–
(1,000)
(0.65)
(0.65)
1,549
1,549
0.1875
1,714
7.6%
1,798
4
1,802
461
2,263
1.46
1.19
1,549
1,611
0.75
10,117
10.8%
0.30
0.30
1,549
1,550
–
–
1,549
1,638
–
–
1,549
1,611
–
–
1,549
1,549
0.30
0.29
1,549
1,611
0.39
0.39
1,549
1,550
0.99
0.93
1,549
1,638
0.43
0.19
1,549
1,611
(0.65)
(0.65)
1,549
1,549
1.16
0.90
1,549
1,611
2
Q2 11
22,184
(1,151)
1,431
6.5%
(978)
453
166
-36.6%
Diluted earnings per common share include assumed shares from stock options and
convertible debt (if dilutive) in the weighted average number of common shares
outstanding during the periods presented.
2010
20,699
(1,456)
397
1.9%
(1,126)
(729)
450
61.8%
1
Q4 10
19,744
(1,134)
1,028
5.2%
(276)
752
576
-76.6%
Q1 11
Sales
Operating income/(loss)
Operating margin (as percentage of sales)
Net financing costs, income from equity method investments and other income
Income before taxes
Income tax (expense)/benefit
Effective tax rate %
Net income (loss) from continuing operations including
non-controlling interest
Non-controlling interests (relating to continuing operations)
Income (loss) from continuing operations
Net income (loss) attributable to owners of the parent
Basic earnings per common share
Diluted earnings per common share1
Diluted weighted average common shares outstanding (in millions)1
Base dividend per share (in US dollars)
Ebitda2
Ebitda margin (as percentage of sales)
Earnings per share
Basic earnings per common share (in US dollars)
Diluted earnings per common share (in US dollars)
Diluted weighted average common shares outstanding (in millions)
Continued operations
Q3 10
20,154
(1,206)
1,603
8.0%
(37)
1,566
92
-5.9%
Financials
ArcelorMittal and subsidiaries (millions of US dollars, except share and per share data)
Q2 10
17,428
(1,124)
577
3.3%
(310)
267
361
-135.1%
Mining operations
Sales
Operating income/(loss)
Operating margin (as percentage of sales)
Net financing costs, income from equity method investments and other income
Income before taxes
Income tax (expense)/benefit
Effective tax rate %
Net income (loss) from continuing operations including
non-controlling interest
Non-controlling interests (relating to continuing operations)
Income (loss) from continuing operations
Net income (loss) attributable to owners of the parent
Basic earnings per common share
Diluted earnings per common share1
Diluted weighted average common shares outstanding (in millions)1
Base dividend per share (in US dollars)
Ebitda2
Ebitda margin (as percentage of sales)
Earnings per share
Continued operations
Operations
ArcelorMittal and subsidiaries (millions of US dollars, except share and per share data)
Ebitda defined as operating income plus depreciation, impairment expenses and
exceptional items.
49
Consolidated
statements of
financial position
Assets
Current assets:
Cash and cash equivalents
Restricted cash
Trade accounts receivable and other, including 616 and 457 from related parties at December 31, 2010 and 2011,
respectively
Inventories
Prepaid expenses and other current assets
Assets held for sale and distribution
Total current assets
Non-current assets:
Goodwill and intangible assets
Property, plant and equipment
Investments in associates and joint ventures
Other investments
Deferred tax assets
Other assets
Total non-current assets
Total assets
Liabilities and equity
Current liabilities:
Short-term debt and current portion of long-term debt
Trade accounts payable and other, including 465 and 257 to related parties at December 31, 2010 and 2011,
respectively
Short-term provisions
Accrued expenses and other liabilities
Income tax liabilities
Liabilities held for sale and distribution
Total current liabilities
Non-current liabilities:
Long-term debt, net of current portion
Deferred tax liabilities
Deferred employee benefits
Long-term provisions
Other long-term obligations
Total non-current liabilities
Total liabilities
Equity:
Common shares (no par value, 1,617,000,000 and 1,617,000,000 shares authorized, 1,560,914,610
and 1,560,914,610 shares issued, and 1,548,561,690 and 1,548,951,866 shares outstanding at
December 31, 2010 and 2011, respectively)
Treasury shares (12,352,920 and 11,962,744 common shares at December 31, 2010 and 2011, respectively,
at cost)
Additional paid-in capital
Retained earnings
Reserves
Equity attributable to the equity holders of the parent
Non-controlling interests
Total equity
Total liabilities and equity
50
December 31, 2010
December 31, 2011
6,207
82
3,821
84
5,725
19,583
4,160
6,918
42,675
6,452
21,689
3,559
–
35,605
14,373
54,344
10,152
267
6,603
2,490
88,229
130,904
14,053
54,251
9,041
226
6,081
2,623
86,275
121,880
December 31, 2010
December 31, 2011
6,716
2,784
13,256
1,343
6,900
471
2,037
30,723
12,836
1,213
6,624
367
–
23,824
19,292
4,006
7,180
1,738
1,865
34,081
64,804
23,634
3,680
7,160
1,601
1,504
37,579
61,403
9,950
9,403
(427)
20,198
31,647
1,062
62,430
3,670
66,100
130,904
(419)
19,056
30,531
(1,881)
56,690
3,787
60,477
121,880
Overview
Consolidated
statements of
cash flows
Operations
4,395
525
1,445
(1,479)
1,189
46
145
(354)
(427)
313
4,669
331
1,822
882
226
239
(78)
(600)
(42)
608
(433)
(5,540)
(1,320)
(197)
3,442
132
(973)
43
(240)
(277)
245
4,015
(694)
(3,057)
(1,659)
(1,237)
(74)
353
(1,035)
175
(103)
(557)
(190)
1,777
(3,308)
(4,838)
(75)
(327)
324
50
–
(102)
(3,438)
(860)
(95)
2,160
(840)
900
(105)
(3,678)
–
(593)
1,362
8,484
(2,179)
(5,675)
(1,363)
1,363
8
250
(108)
1,562
7,169
(6,728)
(1,466)
–
–
5
(1,257)
(109)
(48)
(7)
(159)
411
(1,194)
(22)
(8)
(540)
(68)
(2,509)
5,919
–
6,207
123
(123)
6,207
–
3,821
2,259
(461)
1,798
3,005
330
3,335
1
Year ended
December 31, 2011
Financials
Operating activities:
Net income from continuing operations (including non-controlling interests)
Adjustments to reconcile net income to net cash provided by operations and payments:
Depreciation
Impairment
Net interest
Income tax expense (benefit)
Write-downs of inventories to net realizable value and expense related to onerous supply contracts
Labor agreements and separation plans
Litigation provisions (reversal)
Recycling of deferred gain on raw material hedges
Change in fair value of conversion options on convertible bonds and call options on ArcelorMittal shares
Unrealized foreign exchange effects, other provisions and non-cash operating expenses net
Changes in operating assets, liabilities, provision and other operating cash activities excluding the effect
from acquisitions:
Trade accounts receivable
Inventories
Interest paid and received
Taxes paid
Trade accounts payable
Dividends received
Cash contributions to defined benefit plans
Cash received from settlement of hedges not recognized in the consolidated statements of operations
Cash paid for separation plans
Other working capital and provisions movements
Net cash flows (used in) provided by operating activities from discontinued operations
Net cash provided by operating activities
Investing activities:
Purchase of property, plant and equipment and intangibles
Acquisition of net assets of subsidiaries and non-controlling interests, net of cash acquired of nil and 67 in 2010 and
2011, respectively
Investments in associates and joint ventures accounted for under equity method
Disposals of financial assets
Other investing activities net
Cash receipt from loan to discontinued operations
Net cash flows used in investing activities from discontinued operations
Net cash used in investing activities
Financing activities:
Proceeds from mandatory convertible bonds
Acquisition of non-controlling interests1
Proceeds from short-term debt
Proceeds from long-term debt, net of debt issuance costs
Payments of short-term debt
Payments of long-term debt
Premium paid for call options on ArcelorMittal shares
Sale of treasury shares in connection with the call options on ArcelorMittal shares
Sale of treasury shares for stock option exercises
Dividends paid (includes 125 and 32 of dividends paid to non-controlling shareholders in 2010 and 2011,
respectively)
Other financing activities net
Net cash flows used in financing activities from discontinued operations
Net cash used in financing activities
Effect of exchange rate changes on cash
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents:
At the beginning of the year
Cash held for discontinued operations
Reclassification of the period-end cash and cash equivalent of discontinued activities to assets held for sale
and distribution
At the end of the year
Year ended
December 31, 2010
Mining operations
Due to the adoption of IFRS 3 (revised) and IAS 27 (revised), acquisition of
non-controlling interests after January 1, 2010 have been classified as equity
transactions and are presented within financing activities.
51
Liquidity
Liquidity (US$ millions)
Dec 08
Total cash
Available credit lines
Total
Mar 09
Jun 09
Sep 09
Dec 09
Mar 10
Jun 10
Liquidity as at December 31, 2011 (US$ millions)
Total cash
Available credit lines
Total
2011
3,905
8,553
12,458
%
31
69
100
Debt structure as at December 31, 2011 (US$ millions)
Bank loans
Bond
Convertible
Public institutions
Commercial paper
Others
Total
52
Sep 10
Dec 10
Mar 11
Jun 11
Sep 11
Dec 11
7,588 3,979 7,263 5,884 6,009 3,756 2,578 3,477 6,289 3,872 3,205 2,800 3,905
5,827 7,581 15,421 12,537 11,203 10,740 10,236 11,424 11,281 10,600 9,079 8,505 8,553
13,415 11,560 22,684 18,421 17,212 11,496 12,814 14,901 17,570 14,472 12,284 11,305 12,458
2011
4,001
18,137
2,117
598
634
931
26,418
%
15
70
8
2
2
3
100
Overview
Operations
2012
2013
2014
2015
2016
>2016
Total
–
–
–
0.1
3.4
3.5
2.1
1.3
3.4
–
1.7
1.7
–
1.8
1.8
–
9.2
9.2
2.2
17.4
19.6
–
–
–
0.6
2.2
2.8
–
–
–
–
0.5
4.0
–
–
–
–
0.3
3.7
–
–
–
–
0.3
2.0
1.7
–
–
–
0.7
4.2
–
–
–
–
0.5
9.7
1.7
–
–
0.6
4.5
26.4
Financials
Term loan repayments
– Convertibles bonds
– Bonds
Subtotal
LT revolving credit lines
– $6bn syndicated credit facility
– $4bn syndicated credit facility
– $0.6bn bilateral credit facility
Commercial paper
Other loans
Total gross debt
Mining operations
Debt maturity profile as at December 31, 2011 (US$ billions)
Average debt maturity (years)
8
7
6
5
4
3
2
1
0
Sept 08
Dec 08
Mar 09
Jun 09
Sept 09
Dec 09
Mar 10
Jun 10
Sep 10
Dec 10
Mar 11
Jun 11
Sep 11
Dec 11
Rating agency
Fitch
Moody's
S&P
Long-term
Short-term
Outlook
BBB
Baa3
BBB-
F3
P3
A3
Negative
Stable
Negative
53
Operating footprint
Total achievable crude steel capacity (125 million tonnes)
Flat Carbon Europe
Long Carbon Americas
Long Carbon Europe
AACIS
Total
%
26
35
10
14
15
100
Blast furnace facilities
Group/segment
ArcelorMittal group
Flat Americas
USA
Brazil
Dofasco
Flat Europe
Europe
Long
Long Europe
Long Americas
AACIS
South Africa
Temirtau
Kryviy Rih
Number of
blast furnaces
63
15
9
3
3
25
25
11
7
4
12
4
3
5
Electric arc furnace facilities
Group/segment
ArcelorMittal group
Flat Americas
USA
Dofasco
Lázaro Cárdenas
Flat Europe
Europe
Long
Long Europe
Long Americas
AACIS
South Africa
54
Number of
electric arc furnaces
49
6
1
1
4
5
5
33
15
18
5
5
Overview
Main industrial
assets
Operations
Mining operations
Plants, property and equipment
ArcelorMittal has steel production facilities, as well as iron ore and coal mining operations, in North and South America, Europe, Asia and Africa.
All of its operating subsidiaries are substantially owned by ArcelorMittal through intermediate holding companies, and are grouped into the six
reportable segments. Unless otherwise stated, ArcelorMittal owns all of the assets described in this section.
Financials
Steel production facilities of ArcelorMittal
The following table provides an overview by type of steel facility of the principal production units of ArcelorMittal’s continuing operations.
For a map of our main industrial assets, please see the inside front cover.
Facility
Number of facilities
Reflects design capacity and does not take into account other constraints in the production
process (such as upstream and downstream bottlenecks and product mix changes). As a
result, in some cases, design capacity may be different from the current achievable capacity.
2
35.3
106.1
101.6
111.2
12.5
35.9
97.6
77.8
39.8
39.7
21.5
24.2
7.4
37.7
10.7
5.1
15.2
10.8
14.2
20.8
2.7
3.6
0.3
2.6
0.9
3.2
27.5
69.7
65.3
70.4
8.1
23.5
61.4
52.1
19.4
26.1
11.6
12.7
3.3
24.3
6.1
1.5
9.1
6.4
9.6
15.1
1.8
2.2
0.1
1.4
0.5
1.0
1
60
35
63
80
16
47
52
23
42
36
57
41
13
48
3
4
29
29
22
61
13
17
1
17
8
65
Production in 2011
(million tonnes)2
Coke plant
Sinter plant
Blast furnace
Basic oxygen furnace (including tandem furnace)
DRI plant
Continuous caster – slabs
Hot rolling mill
Pickling line
Tandem mill
Annealing line (continuous/batch)
Skin pass mill
Plate mill
Continuous caster – bloom/billet
Breakdown mill (blooming/slabbing mill)
Billet rolling mill
Section mill
Bar mill
Wire rod mill
Hot dip galvanizing line
Electro galvanizing line
Tinplate mill
Tin free steel (TFS)
Color coating line
Seamless pipes
Welded pipes
Capacity
(million tonnes per year)1
Production facility details include the production numbers for each step in the steelmaking
process. Output from one step in the process is used as input in the next step in the process.
Therefore, the sum of the production numbers does not equal the quantity of sellable
finished steel products.
55
Flat Carbon
Americas
Flat Carbon Americas facilities
Burns Harbor; East Chicago; Gary, Indiana
Cleveland, Ohio
Hamilton, Ontario
Riverdale, Illinois
Coatesville; Conshohocken, Pennsylvania
Columbus, Ohio
Weirton, West Virginia
Lázaro Cárdenas
Vitória
São Francisco do Sul
56
Non-steelmaking facilities and joint ventures not included.
Overview
Operations
Unit
Locations
Type of plant
Products
US
US
US
US
US
US
US
US
US
US
US
US
US
US
Brazil
Brazil
Brazil
Canada
Mexico
Warren, OH
Monessen, PA
East Chicago, IN
Burns Harbor, IN
Cleveland, OH
Riverdale, IL
Coatesville, PA
Gallatin, KY
Columbus, OH
New Carlisle, IN
Conshohocken, PA
Weirton, WV
Gary, IN
Jackson, MS
Vitória
Vitória
São Francisco do Sul
Hamilton
Lázaro Cárdenas
Coke-making
Coke-making
Integrated
Integrated
Integrated
Integrated
Mini-mill
Mini-mill
Downstream
Downstream
Downstream
Downstream
Downstream
Downstream
Coke-making
Integrated
Downstream
Integrated, mini-mill
Mini-mill
Coke
Coke
Flat
Flat
Flat
Flat
Flat
Flat
Flat
Flat
Flat
Flat
Flat
Flat
Coke
Flat
Flat
Flat
Flat
Country
Warren
Monessen
Indiana Harbor (East and West)
Burns Harbor
Cleveland
Riverdale
Coatesville
Gallatin
Columbus Coatings
I/N Tek and I/N Kote
Conshohocken
Weirton
Gary Plate
Double G
Sol
ArcelorMittal Tubarão
ArcelorMittal Vega
ArcelorMittal Dofasco
ArcelorMittal Lázaro Cárdenas
Financials
Production locations
Mining operations
ArcelorMittal’s Flat Carbon Americas segment has production facilities in both North and South America, including the US, Canada, Brazil and
Mexico. The following two tables set forth key items of information regarding ArcelorMittal’s principal production locations and production units
in the Flat Carbon Americas segment:
Facility
1
8
4
15
19
2
6
18
7
9
9
16
13
16
1
3
1
5
2
7.2
10.9
26.8
31.5
4.1
6.2
37.2
25.4
9.4
11.9
7.0
8.0
6.0
0.4
0.8
0.3
2.6
Production in 2011
(million tonnes)2
5.7
8.5
19.9
20.5
3.1
4.6
24.2
18.2
6.1
9.1
4.2
4.5
4.6
0.3
0.5
0.1
1.5
Coke plant
Sinter plant
Blast furnace
Basic oxygen furnace
DRI plant
Hot rolling mill
Pickling line
Tandem mill
Annealing line
Skin pass mill
Tinplate mill
Tin free steel (TFS)
Plate mill
Capacity
57
Flat Carbon Europe
Flat Carbon Europe facilities
Tallinn
Charleroi
Bremen
Eisenhüttenstadt
Gent
Geel; Genk
Dunkerque; Mardyck
Zdzieszowice
Liège
Desvres
Mouzon
Montataire
Basse-Indre
Chorzów; Dąbrowa Górnicza;
Sosnowiec; Świętochłowice
Dudelange
Kraków
Frýdek Místek; Ostrava
Florange
Le Creusot
Asturias (Avilés & Gijón)
Châteauneuf; Saint-Chamond
Saint-Chély d’Apcher
Galati
Fos-sur-Mer
Piombino
Bilbao
Skopje
Avellino
Sagunto
Overview
Operations
Unit
ArcelorMittal Bremen
ArcelorMittal Eisenhüttenstadt
ArcelorMittal Belgium
Country
Locations
Type of plant
Products
Germany
Germany
Belgium
Bremen
Eisenhüttenstadt
Ghent, Geel, Genk,
Huy, Liège
Liège
Dunkerque, Mardyck, Montataire, Desvres,
Florange, Mouzon, Basse-Indre
Fos-sur-Mer, Saint-Chély
Galati
Avilés, Gijón, Etxebarri
Integrated
Integrated
Integrated and
downstream
Integrated
Integrated and
downstream
Integrated
Integrated
Integrated
Flat
Flat
Flat
Krakow, Świętochłowice, Dąbrowa Górnicza,
Chorzów, Sosnowiec, Zdzieszowice
Bilbao
Sagunto
Avellino, Piombino
Dudelange, Giebel
Ostrava
Skopje
Tallinn
Charleroi, Le Creosote, Chateauneuf,
Saint-Hammond, Seraing
Integrated
ArcelorMittal Méditerranée
ArcelorMittal Galati
ArcelorMittal España
France
Romania
Spain
ArcelorMittal Poland
ArcelorMittal Sestao
ArcelorMittal Sagunto
ArcelorMittal Piombino
ArcelorMittal Dudelange
ArcelorMittal Frydek – Mistek
ArcelorMittal Skopje
ArcelorMittal Tallinn
Industeel
Poland
Spain
Spain
Italy
Luxembourg
Czech Republic
Macedonia
Estonia
France, Belgium
Mini-mill
Downstream
Downstream
Downstream
Downstream
Downstream
Downstream
Mini-mill and
downstream
Flat
Flat
Flat
Flat
Flat, long,
pipes and tubes
Flat, long
Flat
Flat
Flat
Flat
Flat
Flat
Flat
Flat
Belgium
France
ArcelorMittal Liège Upstream
ArcelorMittal Atlantique et Lorraine
Financials
Mining operations
ArcelorMittal’s Flat Carbon Europe segment has production facilities in Western and Eastern Europe, including Germany, Belgium, France, Spain,
Italy, Luxembourg, Romania, Poland, Macedonia, Estonia and the Czech Republic. The following two tables provide an overview by type of facility
of ArcelorMittal’s principal production locations and production units in the Flat Carbon Europe segment:
Facility
1
24
16
25
30
5
24
11
26
20
23
17
7
4
35
9
9
15
2
14.9
59.2
44.8
46.7
2.7
46.1
39.9
24.7
22.9
10.4
10.4
4.2
4.0
13.2
2.1
2.0
2.4
Production in 2011
(million tonnes)2
12.6
36.2
27.5
29.9
1.5
28.4
26.1
9.9
13.8
5.4
4.8
1.6
2.0
9.2
1.3
1.2
1.2
Coke plant
Sinter plant
Blast furnace
Basic oxygen furnace
Hot rolling mill
Pickling line
Tandem mill
Skin pass mill
Plate mill
Continuous bloom/billet caster
Tinplate mill
Color coating line
Capacity
59
Long Carbon
Americas
Long Carbon Americas facilities
Contrecœur, Québec
East Chicago; Indiana Harbor, Illinois
Steelton, Pennsylvania
Vinton, Texas
Georgetown, South Carolina
LaPlace,
Louisiana
Celaya, Guanajuato
Harriman,
Tennesse
Tultitlán, Estado de México
Lázaro Cárdenas
Point Lisas
Costa Rica
João Monlevade
Piracicaba
Villa Constitución
60
Non-steelmaking facilities and joint ventures not included.
Cariacica
Juiz de Fora
Overview
Long Carbon
Europe
Operations
Long Carbon Europe facilities
Mining operations
Warsaw
Duisburg (Ruhrort, Hochfeld)
Dąbrowa Górnicza;
Sosnowiec;
Ostrava
Gandrange
Bergara; Olaberría;
Zumárraga
Zenica
Hunedoara
Asturias (Gijón)
Esch-Belval; Differdange;
Rodange; Schifflange
Financials
Hamburg
Zaragoza
Madrid
Annaba
Nador
Jorf el Lasfar
61
Long Carbon
Americas
and Europe
ArcelorMittal’s Long Carbon Americas and Europe segment has production facilities in North and South America and Europe, including the US, Canada,
Brazil, Argentina, Costa Rica, Mexico, Trinidad, Spain, Germany, France, Luxembourg, Poland, Romania, Morocco, Algeria, Bosnia and Herzegovina and
the Czech Republic. The following two tables provide an overview by type of facility of ArcelorMittal’s principal production locations and production
units in the Long Carbon segment:
Unit
Country
Locations
Type of plant
Products
Czech Republic
Ostrava
Integrated
ArcelorMittal Poland
Poland
Integrated
ArcelorMittal Annaba
Algeria
Dąbrowa Górnicza,
Sosnowiec, Chorzów
Annaba
ArcelorMittal Bevel & Differdange
Luxembourg
Esch-Belval, Differdange
Mini-mill
ArcelorMittal Rodange & Schifflange
Luxembourg
Esch Schifflange, Rodange
Mini-mill
ArcelorMittal España
ArcelorMittal Madrid
ArcelorMittal Gipuzkoa
Spain
Spain
Spain
Downstream
Mini-mill
Mini-mill
ArcelorMittal Zaragoza
Spain
Gijón
Madrid
Olaberría, Bergara
and Zumárraga
Zaragoza
Gandrange
Warsaw
Hamburg
Ruhrort, Hochfeld
Hunedoara
Nador, Jorf Lasfar
Zenica
Downstream
Mini-mill
Mini-mill
Mini-mill
Mini-mill
Mini-mill
Mini-mill/
Integrated
Mini-mill
Long/sections,
wire rod
Long/sections, wire
rod, sheet piles, rails
Long/wire rod, rebars,
flat/hot-rolled coils,
galvanized coils,
cold rolled coils,
tubes/seamless pipes
Long/sections,
sheet piles
Long/sections, rails,
rebars, sheet piles
Long/rails, wire rod
Long/sections
Long/sections/
wire rod
Long/light bars
and angles
Long/wire rod
Long/bars
Long/wire rods
Long/billets, wire rod
Long/sections
Long/wire rod, bars
Long/wire rod, bars
ArcelorMittal Ostrava
ArcelorMittal Gandrange
ArcelorMittal Warszawa
ArcelorMittal Hamburg
ArcelorMittal Duisburg
ArcelorMittal Hunedoara
Société Nationale de Sidérurgie (Sonasid)
ArcelorMittal Zenica
ArcelorMittal Montreal
ArcelorMittal USA
ArcelorMittal USA
ArcelorMittal USA
ArcelorMittal USA
ArcelorMittal USA
ArcelorMittal USA
ArcelorMittal Point Lisas
ArcelorMittal Brasil
Acindar
ArcelorMittal Las Truchas
ArcelorMittal Tubular Products
62
France
Poland
Germany
Germany
Romania
Morocco
Bosnia and
Herzegovina
Canada
Contrecoeur East, West
US
US
US
US
US
US
Trinidad
Brazil
Argentina
Brazil
Costa Rica
Mexico
Steelton, PA
Georgetown, SC
Indiana Harbor Bar, IN
Vinton, TX
LaPlace, LA
Harriman, TN
Point Lisas
João Monlevade
Villa Constitución
Juiz de Fora, Piracicaba, Cariacica
Costa Rica
Lázaro Cárdenas, Celaya, Tultitlán
Romania,
Czech Republic,
Poland, South Africa,
Kazakhstan, Canada,
US, Mexico, Algeria,
France, Venezuela
Galati, Roman, Iasi, Ostrava,
Karvina, Krakow, Vereeniging,
Temirtau, Brampton,
Woodstock, Hamilton,
Shelby, Marion, Monterrey,
Annaba, Hautmont, Vitry
Integrated
Mini-mill
Mini-mill
Mini-mill
Mini-mill
Mini-mill
Mini-mill
Downstream
Mini-mill
Integrated
Mini-mill
Mini-mill
Downstream
Integrated and
downstream
Downstream
Long/wire rod/
bars/slabs
Long/rail
Long/wire rod
Long/bar
Long/rebar
Long/sections
Long/sections
Long/wire rod
Long/wire rod
Long/wire rod/bar
Long/bar/wire rod
Long/wire rod
Long/bar, wire rod
P&T
Overview
Operations
Facility
2
2.0
6.4
5.9
7.4
3.8
15.2
1.2
0.8
0.3
0.3
0.3
0.1
20.9
0.4
0.7
6.2
6.0
7.7
0.1
0.0
0.5
1.0
3.3
10.5
9.4
12.9
6.8
23.8
3.1
3.2
1.1
1.1
0.9
0.9
31.0
0.7
1.1
10.5
9.5
11.6
0.2
0.1
0.9
3.2
1
6
6
11
14
7
31
4
2
3
3
9
2
42
1
2
20
26
18
6
2
8
65
Production in 2011
(million tonnes)2
Financials
Coke plant
Sinter plant
Blast furnace
DRI plant
Hot rolling mill
Pickling line
Tandem mill
Annealing line
Skin pass mill
Billet rolling mill
Section mill
Bar mill
Wire rod mill
Seamless pipes
Welded pipes
Capacity
Mining operations
63
AACIS
AACIS facilities
Karaganda
Kryviy Rih
Vanderbijlpark;
Vereeniging
Saldanha
Newcastle
64
Overview
Operations
Mining operations
ArcelorMittal’s AACIS segment has production facilities in Asia and Africa, including Kazakhstan, Ukraine, South Africa and Russia. The following two
tables provide an overview by type of facility of ArcelorMittal’s principal production locations and production:
ArcelorMittal Temirtau
ArcelorMittal Kryviy Rih
ArcelorMittal South Africa
Country
Locations
Type of plant
Products
Kazakhstan
Karaganda
Integrated
Ukraine
South Africa
Kryviy Rih
Vanderbijlpark, Saldanha, Newcastle,
Vereeniging, Pretoria
Integrated
Integrated,
mini-mill
Flat, pipes and
tubes, long
Long
Flat, long, pipes
and tubes
Facility
1
22
9
12
17
7
5
6
3
4
4
9
9
1
2
2
1
9
3
4
5
1
5
2
2
9.9
25.5
20.6
20.2
1.6
3.3
11.2
9.4
4.6
3.7
3.2
5.0
0.6
2.8
10.0
1.5
4.7
1.0
2.6
1.4
0.1
0.8
0.2
Production in 2011
(million tonnes)2
7.2
18.6
11.9
12.7
1.1
2.2
7.6
7.0
3.2
2.9
1.8
3.3
0.2
1.3
5.7
0.8
2.9
0.4
1.9
1.2
0.1
0.5
0.2
Production facility details include the production numbers for each step in the
steelmaking process. Output from one step in the process is used as input in the next
step in the process. Therefore, the sum of the production numbers does not equal the
quantity of sellable finished steel products.
Coke plant
Sinter plant
Blast furnace
DRI plant
Hot rolling mill
Pickling line
Tandem mill
Skin pass mill
Plate mill
Billet rolling mill
Section mill
Bar mill
Wire rod mill
Tinplate mill
Color coating line
Capacity
Financials
Unit
65
Mining
Mining facilities
Kryviy Rih
Tebessa
Prijedor
Yekepa (Liberia)
Mont-Wright, Quebec
(ArcelorMittal Mines Canada)
Hibbing; Virginia, Minnesota
Princeton, West Virginia
Obregon, Sonora (Volcan)
Minatitlán (Peña Colorada)
State of Minas Gerais (Andrade)
Lázaro Cárdenas (Las Truchas)
State of Minas Gerais (Serra Azul)
Kemorovo (Kuzbass)
Karaganda
Lisakovsky, Kentobe, Atasu, Atansore
66
Overview
Operations
Mining operations
Mining production locations
ArcelorMittal’s mining segment has production facilities in North and South America, Africa, Europe and CIS. The following table provides an
overview by type of facility of ArcelorMittal’s principal production locations and production:
Type of mine
Type of product
Canada
Mont-Wright, Qc
100
Iron ore mine (open pit)
Minorca Mines
Hibbing Taconite Mines
ArcelorMittal Lázaro Cárdenas Volcan Mines
ArcelorMittal Lázaro Cárdenas Peña
Colorada
ArcelorMittal Las Truchas
US
US
Mexico
Mexico
Virginia, MN
Hibbing, MN
Sonora
Minatitlán
100
62.3
100
50
Mexico
Lázaro Cárdenas
100
ArcelorMittal Brasil Andrade Mine
ArcelorMittal Mineração Serra Azul
ArcelorMittal Tebessa
Brazil
Brazil
Algeria
State of Minas Gerais
State of Minas Gerais
Tebessa
100
100
70
Concentrate
and pellets
Pellets
Pellets
Concentrate
Concentrate
and pellets
Concentrate, lump
and fines
Fines
Lump and fines
Fines
Prijedor
ArcelorMittal Kryviy Rih
Bosnia and
Herzegovina
Ukraine
Kazakhstan
ArcelorMittal Liberia
Coal
ArcelorMittal Princeton
Liberia
ArcelorMittal Kuzbass
Iron ore
ArcelorMittal Mines Canada
ArcelorMittal Prijedor
US
Kryviy Rih
Lisakovsky, Kentobe,
Atasu, Atansore
Yekepa
Iron ore mine
(open pit and underground)
51
Iron ore mine
(open pit)
95
Iron ore mine
100
Iron ore mine
70
Kazakhstan
McDowell, WV,
Tazewell, VA
Karaganda
100
100
Coal mine
(surface and underground)
Coal mine (underground)
Russia
Kemerovo
98
Coal mine (underground)
Concentrate
and lump
Concentrate, lump
and sinter feed
Concentrate, lump
and fines
Fines
Coking and
PCI coal
Coking coal and
thermal coal
Coking coal
ArcelorMittal
interest (%)
Locations
Financials
Country
Unit
67
We are leaders in
automotive steel
ArcelorMittal has a strong global automotive manufacturing presence, with
production facilities in North America, South America, Europe and South Africa,
as well as a global network of sales and service offices. We are the undisputed
leader for high value-added products for the automotive industry and have a
market share of around 18% worldwide. Our automotive and R&D teams work
closely with partners and suppliers to develop new steels for the automotive
industry. The award-winning S-in motion, launched in 2010, is one of
ArcelorMittal’s largest such projects. The S-in motion model introduces pioneering
new ways to use high strength grades of steel, together with novel design and
manufacturing techniques, to produce the body-in-white and chassis parts of a
typical family car. S-in motion steels can cut vehicle weight by a fifth – and CO2
emissions by 15%.
Shipments in 2011
85.8
mt*
* millions of tonnes.
Picture US
Overview
Operations
Mining operations
Financials
69
Flat Carbon
Americas
Brazil – CST, Sol and
Vega do Sul
Operational capacity and
production 2011 in metric tonnes
Coal
Iron ore
Sintering plant
6,500kt
(5,791kt)
Blast furnace
7,285kt
(5,624kt)
Coke oven
3,254kt
(2,870kt)
Oxygen converter
7,600kt
(5,606kt)
Continuous casting slabs
7,550kt
(5,405kt)
Slab
Hot rolling mill
4,000kt
(3,590kt)
Cold rolled coil
Cold rolling mill
1,350kt
(1,216kt)
Galvanizing line
790kt
(734kt)
70
Numbers in orange = operational capacity
Numbers in black = production capacity
Coated coil
Hot rolled coil
Overview
Flat Carbon
Americas
Operations
Canada – Dofasco/
Hamilton
Blast furnace
3,303kt
(2,462kt)
Oxygen converter
2,917kt
Coke oven
1,460kt
(999kt)
Scrap
Slab
(1,178kt)
Hot rolling mill
4,530kt
(3,508kt)
1,527kt
(2,429kt)
4,355kt
Financials
Iron ore
Mining operations
Coal
(4,040kt)
Tinplate mill
291kt
Cold rolled coil
(221kt)
Cold rolling mill
2,943kt
Hot rolled coil
(2,539kt)
Galvanizing line
1,556kt
Coated coil
(1,362kt)
71
Flat Carbon
Americas and
Long Carbon
Mexico – Lázaro Cárdenas
Iron ore
Direct reduced iron
4,100kt
(3,131kt)
4,000kt
(2,805kt)
3,800kt
(2,435kt)
Slab
Pelletizer plant
5,258kt
Coal
(4,169kt)
Blast furnace
1,550kt
(1,231kt)
Oxygen converter
1,750kt
Coke oven
563kt
(444kt)
Scrap
(1,242kt)
Continuous casting
billets and blooms
1,828kt
(1,460kt)
Blooms billets
Bar mill
1,000kt
(842kt)
Sections
72
Wire rod mill
500kt
(529kt)
Wire rod
Overview
Flat Carbon
Americas
Operations
US – Burns Harbor
(1,633kt)
Blast furnace
4,700kt
(4,093kt)
Coke oven
1,632kt
Financials
Sintering plant
2,200kt
Coal
Mining operations
Iron ore
(1,508kt)
Oxygen converter
5,085kt
(4,573kt)
4,899kt
Plate mill
1,651kt
Slab
(860kt)
Hot rolling mill
3,964kt
(4,351kt)
(3,128kt)
Plate
Hot rolled coil
Cold rolling mill
2,087kt
(1,531kt)
Coated coil
(447kt)
Cold rolled coil
Galvanizing line
544kt
73
Flat Carbon
Americas
US – Cleveland
Iron ore
Blast furnace
2,809kt
Coke
(1,191kt)
Oxygen converter
5,771kt
Scrap
(2,251kt)
5,291kt
(2,239kt)
Slab
Hot rolling mill
3,005kt
(2,183kt)
Hot rolled coil
Cold rolling mill
908kt
(594kt)
Coated coil
Galvanizing line
635kt
(467kt)
74
Cold rolled coil
Overview
Flat Carbon
Americas
Operations
US – Indiana Harbor
East and West
Mining operations
Iron ore
(1,084kt)
Blast furnace
8,704kt
Coke
Financials
Sintering plant
2,178kt
(5,754kt)
Oxygen converter
8,929kt
Scrap
(5,091kt)
10,235kt
Slab
Hot rolling mill
8,850kt
(5,215kt)
(4,688kt)
Hot rolled coil
Cold rolling mill
2,613kt
(1,455kt)
Coated coil
(639kt)
Cold rolled coil
Galvanizing line
1,088kt
75
Flat Carbon Europe
Belgium – Gent
Iron ore
Sintering plant
7,200kt
(5,350kt)
Scrap
Coal
Blast furnace
4,100kt
(3,892kt)
Coke oven
1,270kt
(1,248kt)
Oxygen converter
5,000kt
(4,406kt)
6,500kt
(4,363kt)
Hot rolling mill
5,500kt
Slab
(4,465kt)
Coated coil
Hot rolled coil
(276kt)
Cold rolling mill
3,678kt
Color coating line
354kt
(2,780kt)
Cold rolled coil
Galvanizing line
1,770kt
(1,491kt)
76
Coated coil
Overview
Flat Carbon Europe
Operations
Belgium – Liège
(1,272kt)
Scrap
Blast furnace
3,100kt
(833kt)
Coke oven
800kt
(619kt)
Oxygen converter
3,200kt
(898kt)
3,500kt
(891kt)
Hot rolling mill
2,900kt
Financials
Sintering plant
5,200kt
Coal
Mining operations
Iron ore
Slab
(1,392kt)
Coated coil
Hot rolled coil
(116kt)
Color coating line
291kt
Cold rolling mill
2,600kt
(1,550kt)
Cold rolled coil
(1,393kt)
Coated coil
Galvanizing line
2,318kt
77
Flat Carbon Europe
France – Dunkerque,
Mardyck, Montataire
and Desvres
Iron ore
Sintering plant
9,600kt
(6,609kt)
Scrap
Coal
Blast furnace
6,972kt
(5,514kt)
Coke oven
1,380kt
(1,362kt)
Oxygen converter
6,750kt
(5,892kt)
6,500kt
(5,826kt)
Slab
Hot rolling mill
5,100kt
(3,587kt)
Cold rolling mill
2,196kt
Coated coil
(145kt)
Hot rolled coil
Color coating line
240kt
Galvanizing line
2,675kt
Coated coil
(1,520kt)
Cold rolled coil
(1,830kt)
78
Overview
Flat Carbon Europe
Operations
France – Florange,
Mouzon and Dudelange
(1,694kt)
Scrap
Blast furnace
2,847kt
(1,051kt)
Coke oven
700kt
(604kt)
Oxygen converter
2,500kt
(1,106kt)
2,400kt
(1,082kt)
Slab
Hot rolling mill
3,100kt
(2,194kt)
Cold rolling mill
3,481kt
Financials
Sintering plant
4,400kt
Coal
Mining operations
Iron ore
Coated coil
(16kt)
Hot rolled coil
Color coating line
222kt
Galvanizing line
2,348kt
Coated coil
(2,350kt)
Cold rolled coil
(1,567kt)
79
Flat Carbon Europe
France – Fos-sur-Mer
Iron ore
Sintering plant
6,800kt
(3,811kt)
Scrap
Coal
Blast furnace
5,110kt
(2,614kt)
Coke oven
1,650kt
(958kt)
Oxygen converter
5,100kt
(2,764kt)
5,000kt
(2,711kt)
Slab
Hot rolling mill
4,800kt
(2,832kt)
Hot rolled coil
Cold rolling mill
158kt
(108kt)
80
Cold rolled coil
Overview
Flat Carbon Europe
Operations
Germany – Bremen
Mining operations
Iron ore
(2,350kt)
Blast furnace
3,943kt
Coke
Financials
Sintering plant
2,100kt
(2,743kt)
Oxygen converter
3,700kt
(3,099kt)
3,600kt
(3,062kt)
Slab
Hot rolling mill
5,000kt
(3,293kt)
Cold rolling mill
1,997kt
Hot rolled coil
(1,135kt)
Cold rolled coil
(1,088kt)
Coated coil
Galvanizing line
1,494kt
81
Flat Carbon Europe
Germany –
Eisenhüttenstadt
Iron ore
Sintering plant
2,900kt
(2,107kt)
Scrap
Blast furnace
2,100kt
Coke
(1,642kt)
Oxygen converter
2,400kt
(1,925kt)
Continuous casting
billets and blooms
500kt
Blooms billets
(49kt)
2,400kt
(1,772kt)
Slab
Hot rolling mill
2,100kt
(1,487kt)
Cold rolling mill
1,901kt
Hot rolled coil
Coated coil
(1,175kt)
Cold rolled coil
(111kt)
Galvanizing line
950kt
(798kt)
82
Coated coil
Color coating line
145kt
Overview
Flat Carbon Europe
Operations
Poland – Kraków and
Świętochłowice
(1,035kt)
Scrap
Blast furnace
2,300kt
(768kt)
Coke oven
657kt
(580kt)
Oxygen converter
2,600kt
(852kt)
2,000kt
(826kt)
Hot rolling mill
2,400kt
Financials
Sintering plant
1,950kt
Coal
Mining operations
Iron ore
Slab
(1,884kt)
Hot rolled coil
Welded pipes
350kt
(64.7kt)
Coated coil
(240kt)
Color coating line
300kt
Cold rolling mill
1,000Kt
(705kt)
Cold rolled coil
(453kt)
Coated coil
Galvanizing line
520kt
83
Flat Carbon Europe
Romania – Galati
Iron ore
Sintering plant
8,150kt
(2,120kt)
5,060kt
(1,783kt)
Slab
Blast furnace
5,290kt
Coke
(1,581kt)
Oxygen converter
6,400kt
(1,854kt)
Blooms billets
Continuous casting
billets and blooms
521kt
(Nil)
Billet mill
Nil
(Nil)
Plate mill
2,700kt
(538kt)
Plate
Hot rolling mill
3,500kt
(1,252kt)
Hot rolled coil
Cold rolling mill
1,000kt
(395kt)
Welded pipes
45kt
Cold rolled coil
(26kt)
Galvanizing line
200kt
(155kt)
84
Coated coil
Overview
Long Carbon and
Flat Carbon Europe
Operations
Czech Republic – Ostrava
(2,602kt)
Scrap
Coal
Blast furnace
4,113kt
(2,108kt)
Coke oven
1,525kt
Financials
Sintering plant
3,700kt
Mining operations
Iron ore
(1,105kt)
Oxygen converter
3,600kt
1,350kt
Continuous casting billets
2,200kt
Slab
(1,376kt)
(538kt)
Seamless pipe
288kt
(1,947kt)
Blooms billets
(220kt)
Hot rolling mill
1,350kt
Section/wire rod mill
1,950kt
(520kt)
Sections
1,350kt
Hot rolled coil
(778kt)
(24kt)
Cold rolling mill
220kt
(262kt)
Cold rolled coil
(121kt)
Welded pipes
45kt
Wire rod
600kt
85
Long Carbon and
Flat Carbon Europe
Poland – Dąbrowa
Górnicza, Sosnowiec
and ZKZ
Iron ore
Sintering plant
5,407kt
(5,478kt)
Coal
Blast furnace
4,400kt
(3,207kt)
Oxygen converter
5,000kt
Coke oven
4,010kt
(3,627kt)
Scrap
(3,672kt)
3,000kt
(1,578kt)
Slab
Continuous casting
billets and blooms
3,000kt
(1,974kt)
Blooms billets
Section mill
1,800kt
(1,069kt)
Sections
86
Wire rod mill
750kt
(514kt)
Wire rod
Overview
Long Carbon and
Flat Carbon Europe
Operations
Spain – Gijón and Avilés
(4,414kt)
Scrap
Coal
Blast furnace
4,600kt
(3,701kt)
Coke oven
2,470kt
Financials
Sintering plant
5,500kt
Mining operations
Iron ore
(1,692kt)
Oxygen converter
6,000kt
(3,994kt)
Continuous casting
billets and blooms
2,050kt
3,900kt
Slab
Hot rolling mill
3,650kt
Blooms billets
(2,844kt)
Plate mill
610kt
Hot rolled coil
(337kt)
Plate
Wire rod mill
620kt
(535kt)
(3,356kt)
(321kt)
Section and rail mill
380kt
Wire rod
(164kt)
Cold rolling mill
1,043kt
Rails
(545kt)
Cold rolled coil
(548kt)
Coated coil
Galvanizing line
971kt
87
AACIS
Kazakhstan – Temirtau
Iron ore
Sintering plant
7,200kt
(5,856kt)
Blooms billets
Coal
Blast furnace
4,590Kt
(3,141kt)
Oxygen converter
6,000Kt
Coke oven
3,507Kt
(2,305kt)
Scrap
(3,684kt)
Bar mill
400Kt
(19kt)
Bars
5,200Kt
(3,636kt)
Slab
Hot rolling mill
4,600Kt
(3,521kt)
Cold rolling mill
2,150Kt
Hot rolled coil
Coated coil
(68kt)
Color coating line
80Kt
(1,763kt)
Cold rolled coil
Galvanizing line
800Kt
(688kt)
88
Coated coil
Overview
AACIS
Operations
South Africa –
Vanderbijlpark
Sintering plant
2,666Kt
Coke oven
1,700Kt
(2,539kt)
Financials
Coal
Mining operations
Iron ore
(1,117kt)
Scrap
Blast furnace
3,170Kt
Direct reduced iron
950Kt
4,740Kt
(677kt)
Oxygen converter
3,360Kt
1,500Kt
(2,226kt)
(2,277kt)
(837kt)
Slab
(2,970kt)
Plate mill
600Kt
(218kt)
Hot rolling mill
3,500Kt
Hot rolled coil
(2,535kt)
(1,147kt)
Plate
Coated coil
Cold rolled coil
Color coating line
105Kt
Coated coil
Galvanizing line
700Kt
(557kt)
(83kt)
Cold rolling mill
1,570Kt
89
AACIS
Ukraine – Kryviy Rih
Iron ore
Sintering plant
13,331Kt
(9,013kt)
Coal
Blast furnace
10,270Kt
(4,894kt)
Oxygen converter
(8,523Kt)
Coke oven
3,106Kt
(2,476kt)
Scrap
(5,703kt)
Ingot casting
Blooming mill
10,000Kt
(5,762kt)
Section mill
4,150Kt
90
Blooms billets
Wire rod mill
1,920Kt
Sections
Wire rod
(2,613kt)
(1,480kt)
Overview
Operations
Mining operations
Financials
Knowing your core strengths is important
when faced with economic volatility and
rapid change. At ArcelorMittal, having five
core strengths at the heart of the business
has helped to ensure we have effectively
responded to evolving market conditions
while maintaining a consistent strategy.
Aditya Mittal
CFO, member of the Group Management Board
91
We have a stronger
balance sheet
Our balance sheet is far stronger today than it was at the onset of the global
financial crisis in 2008. Since the crisis we have strengthened our balance sheet,
significantly reduced debt and extended the average maturity of our borrowings.
Our improved financial profile meant that as fears over the eurozone situation
intensified in 2011, the company was able to focus on managing the business
rather than the balance sheet. Looking ahead, we will continue to invest in order
to maintain our production facilities, and to sustain R&D and product quality.
But acquisitions will be made only selectively and where they are strategically
important. We are committed to maintaining our investment grade rating and
as part of our plan to do this, are considering some non-core asset divestments.
Net debt US$ billions
2011
22.5
2010
19.7
2009
18.8
2008
26.5
Picture Luxembourg
Overview
Operations
Mining operations
Financials
93
Shareholder
information
ArcelorMittal is listed
on the stock exchanges
of New York (MT),
Amsterdam (MT), Paris
(MT), Luxembourg (MT)
and on the Spanish stock
exchanges of Barcelona,
Bilbao, Madrid and
Valencia (MTS).
ArcelorMittal, with its diversified
business model, strong cash flow
and cost leadership position, is well
placed to weather the current
challenging economic environment
and has the ambition to develop
and balance its shareholder base
on the major listed markets and
to attract new investors.
Indexes
ArcelorMittal is a member of more
than 120 indices including the
following leading indices: DJ STOXX
50, DJ EURO STOXX 50, CAC40,
AEX, FTSE Eurotop 100, MSCI
Pan-Euro, DJ Stoxx 600, S&P
Europe 500, Bloomberg World
Index, IBEX 35 index and NYSE
Composite Index. Recognized for
ArcelorMittal remains optimistic
its commitment to sustainable
about the industry’s medium-term development, ArcelorMittal is also
growth prospects. In light of recent a member of the FTSE4Good Index
market uncertainty primarily due
and Dow Jones Sustainability Index.
to the European debt crisis and
its potential global impact, the
Share price performance
company has calibrated its steel
The price of ArcelorMittal
growth projects to evolving
shares declined by 50% in 2011,
demand situations. At the same
underperforming both the Global
time, we are focusing on core
Metals & Mining sector which
growth investments in our mining
declined by 34% and the Global
business given their generally more Steel sector which declined by 39%.
attractive return profiles. This has
The underperformance largely
resulted in postponement of
occurred during the third quarter
some planned steel investments.
of 2011 when fears of a potential
Accordingly, full year 2012 capital eurozone crisis intensified. This
expenditure is expected to be
unease affected the share price
approximately $4-4.5 billion.
performance of those companies
with significant trading exposure to
ArcelorMittal share price performance since creation Base 100 at August 1, 2006 (US$)
350
300
250
ArcelorMittal
200
150
Global Metals & Mining
(incl Steel) Index
100
50
0
Aug 06
94
Dec 06
Apr 07
Aug 07
Dec 07
Apr 08
Aug 08
Dec 08
Apr 09
Aug 09
Dec 09
Apr 10
Aug 10
Dec 10
Apr 11
Aug 11
Dec 11
Overview
Financial results*
February 7, 2012
May 10, 2012
July 25, 2012
October 31, 2012
Results for 4th quarter 2011 and 12 months 2011
Results for 1st quarter 2012
Results for 2nd quarter 2012 and 6 months 2012
Results for 3rd quarter 2012 and 9 months 2012
Financial calendar
Credit and fixed income investors
Credit, fixed income investors
and rating agency are followed
by a dedicated team from
investor relations reachable at:
[email protected]
Analysts and institutional
investors
As the world’s leading steel and
mining company, ArcelorMittal
constantly seeks to develop
relationships with financial analysts
and international investors.
To meet this objective, ArcelorMittal Depending on their geographical
implements an active and broad
location, investors may use the
investor communications policy:
following emails:
conference calls, road shows with
[email protected]
the financial community, regular
[email protected]
participation at investor
conferences, plant visits and
meetings with individual investors.
Socially responsible investors
The investor relations team is
also a source of information for
the growing socially responsible
investment community. The
team organizes special events
on ArcelorMittal’s corporate
responsibility strategy and
answers all requests for
information sent to ArcelorMittal
at: [email protected]
Financials
Investor relations
By implementing high standards
of financial information disclosure
and aiming to provide clear,
regular, transparent and balanced
information to all its shareholders,
ArcelorMittal aims to be the first
choice for investors in the sector.
Individual investors
ArcelorMittal’s senior management
plans to meet individual investors
and shareholder associations in
road shows throughout 2012.
A dedicated toll free number for
individual investors is available at
+352 4792 3198. Requests for
information or meetings on the
virtual meeting and conference
center may also be sent to:
[email protected]
Mining operations
Dividend
ArcelorMittal’s board of directors
has recommended to maintain the
annual dividend per share at $0.75
for 2012, subject to the approval
of the annual general meeting of
shareholders on May 8, 2012.
Once market conditions have
normalized, the board of directors
will review the dividend policy.
The dividend payments will occur
on a quarterly basis for the full
year 2012 (see financial calendar).
Dividends are announced in $ and
paid in $ for shares listed on the
New York Stock Exchange and
paid in euros for shares listed on
the European stock exchanges
(the Netherlands, France, Spain,
and Luxembourg).
Operations
the eurozone block. ArcelorMittal’s
share price was further impacted
by concerns over the company’s
indebtedness and perceived risks
that debt covenants could be
breached; these concerns were
addressed at our Investor Day on
September 23, 2011.Subsequently,
during the final three months of
2011, ArcelorMittal’s share price
increased by 14%, outperforming
the Global Steel and Global Metals
& Mining peer groups.
* EarningsresultsareissuedbeforetheopeningofthestockexchangesonwhichArcelorMittalislisted.
Dividend payment (subject to shareholder approval)
March 13, 2012
June 14, 2012
September 10, 2012
December 10, 2012
1st quarterly payment of base dividend (interim dividend)
2nd quarterly payment of base dividend
3rd quarterly payment of base dividend
4th quarterly payment of base dividend
Institutional investor days and retail shareholder events
May 8, 2012
September 18, 2012
September 26, 2012
Annual shareholder meeting in Luxembourg
Investor Day with Group Management Board members
Retail shareholder event
Contact the investor relations team on the information detailed above or please visit
www.arcelormittal.com/corp/investors/contact
Stock exchange
Paris
Amsterdam
New York
Madrid
Luxembourg
Symbol
Bloomberg
Reuters
MT
MT
MT
MTS
MT
MT NA
MT NA
MT US
MTS SM
MT LX
ISPA.AS
ISPA.AS
MT.N
MTS.MC
MT.LU
Ticker symbols
95
Shareholding
structure
Shareholding structure (as at December 31, 2011)
Free float (922.9 million shares)
Mittal family (638.1 million shares)
%
59.1
40.9
Shareholding structure (as at December 31, 2011)
Mittal family
Treasury shares
Other public shareholders
Total
Total issued less treasury shares
96
ArcelorMittal shares
% of total
638,063,696
9,663,709
913,187,205
1,560,914,610
1,551,250,901
40.88
0.62
58.50
100.00
Overview
Investor relations
Operations
Email
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Telephone
+44
+44
+44
+33
+1
+1
+44
207 543 1105
207 543 1128
207 543 1156
1 71 92 10 26
312 899 3927
312 899 3985
207 543 2417
Financials
Daniel Fairclough – global head investor relations
Hetal Patel – UK/European investor relations
Valérie Mella – European/retail investor relations
Maureen Baker – fixed income/debt investor relations
Thomas A McCue – US investor relations
Lisa Fortuna – US investor relations
Kate Ledger – corporate access and team assistant
Mining operations
Investor relations team contacts
‘Nature’, a sustainable organic coated
steel product line
ArcelorMittal Flat Carbon Europe and
ArcelorMittal Construction are anticipating
the European REACH regulation (Registration,
Evaluation, Authorisation and Restriction of
Chemicals) by launching ‘Nature’, a sustainable
organic coated steel product line. These
coatings are free from hexavalent chromium
and heavy metals (lead or hexavalent
chromium complex). ArcelorMittal always
strives to find greener ways of working
through its R&D programs.
Left Maizières, France
97
Equity analyst
coverage
Equity analyst coverage
The following analysts regularly publish research reports on ArcelorMittal. Please note that this list is provided for information purposes and might
change when a company initiates or cancels coverage of ArcelorMittal. The recommendations, forecasts and opinions expressed in these reports
are those of the analysts and are not necessarily representing the recommendations, forecasts and opinions of ArcelorMittal and its management.
Company and analyst
Abn-Amro
Maarten Bakker
AlphaValue
Véronique Colas
Applebaum Research
Michelle Applebaum
Banco Sabadell
Francisco Sànchez
Bankia Bolsa
Iñigo Recio
Banesto Bolsa
Robert Jackson
Bank of America Merrill Lynch
Cedar Barnes
Timna Tanners
Barcap
Vincent Lepine
BBVA
Luis de Toledo
BHF Bank
Hermann Reith
Bradford Research
Chuck Bradford
Citigroup
Anindya Mohinta
Commerzbank
Ingo Schachel
Credit Suisse
Michael Shillaker
Dahlman Rose & Co.
Anthony Rizzuto, Jr
Anthony Young
Davy
Tim Cahill
Killian Murphy
Deutsche Bank
David Martin
Bastian Synagowitz
Exane BNP Paribas
Sylvain Brunet
Luc Pez
98
Email
Telephone
[email protected] +31 20 343 54 12
[email protected] +33 1 70 61 10 50
[email protected] +1 847 433 8465
[email protected] +3491 782 9157/8
[email protected] [email protected] +44 20 7995 8894
+1 646 855 3745
[email protected] +33 1 44 58 32 45
[email protected] +49
69 718 2632
+1 212 702 4501
[email protected] [email protected] +353
+352
1 614 8875
1 614 9956
+49 69 910 36126
[email protected] [email protected] +33 1 42 99 50 84
+33 1 42 99 24 71
Overview
Operations
Mining operations
Company and analyst
Email
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
+34
+34
91 289 37 48
91 289 93 84
+44 20 7991 6835
+32
2 547 60 97
+44 20 7325 9744
+1 212 622 6446
+31
+31
20 348 8479
20 348 8477
+49 69 7 56 96 279
[email protected]
+44 20 3037 43 59
[email protected]
+49 69 788 08 224
[email protected]
+33 1 58 55 65 53
[email protected]
+44 20 7102 1808
[email protected]
[email protected]
+49 69 71 34 5209
+49 69 71 34 5498
[email protected]
+32
2 229 63 42
[email protected]
+31
20 460 4868
[email protected]
+44 20 7653 4866
[email protected]
+49 69 29 71 6142
[email protected]
[email protected]
+33 1
[email protected]
[email protected]
[email protected]
Telephone
Financials
Grupo Santander
Juan Ramon Correas
Nitesh Agarwal
HSBC
Thorsten Zimmermann
ING
Filip De Pauw
JP Morgan
Alessandro Abate
Michael Gambardella
Kempen & Co
Sander Van Oort
Erwin Dut
Kepler Capital Markets
Rochus Brauneiser
Macquarie
Jeff Largey
MainFirst Bank
Alexander Hauenstein
Natixis
Raoudha Bouzekri
Nomura
Neil Sampat
Oppenheim Research
Peter Metzger
Ulrich Scholz
Petercam
Alan Vandenberghe
Rabo Securities
Frank Claassen
Royal Bank of Canada Europe Ltd
Tim Huff
Steubing AG
Michael Broeker
Société Générale
Alain William
UBS
Carsten Riek
58 98 12 61
+44 20 7568 1268
99
Steelmaking
process
Upstream (crude steel)
Coking coal
Pig iron ore
Blast
furnace
process
Coke oven
Sintering
Blast furnace
Oxygen
converter
Ingot casting
Steelmaking
process
Iron ore
Electric arc
furnace
Scrap
Direct
reduced
iron
Ingot breakdown
Secondary
metallurgy
Continuous
casting
Electric arc
furnace
process
Steel is produced from iron ore or scrap. Iron ore is a mineral aggregate that can be converted economically into iron. The quality of
the iron ore is mainly determined by its composition: a high iron content and low sulphur and phosphorus contents are favorable.
Iron ore can be found all over the world, but its iron content varies.
Steel scrap has been selectively collected for several decades and is recycled as a valuable raw material for steel production.
In steel production, following production stages are identified: production of pig iron; production of liquid steel; hot rolling and
cold rolling; applying a metallic and/or organic coating.
There are two main processes for producing steel: by means of a blast furnace (= indirect reduction) in combination with a
converter, or by means of an electric furnace. In the former process, iron ore is the main raw material. In an electric furnace,
scrap iron is used and occasionally also sponge iron. Sponge iron is an intermediate product, which is produced from iron ore by
means of direct reduction (= DRI or directly reduced iron) and that is then further reduced and smelted in an electric furnace.
100
Bloom
Billet
Slab/thin slab
Overview
Operations
Section mill
Seamless pipe
Rails
Wire drawing
Shape
Financials
Tube, round
bar mill
Mining operations
Downstream (finished steel)
Wire rod
Bar
Hot strip mill
Welded pipe
Cold rolled
sheet
Cold rolled
sheet/coil
Annealing
(batch,
continuous)
Electrocoating
Galvanizing
Coated coil
UOE pipe
Zn, Zn-alloy
coated
sheet
Pipe forming
Precoated
sheet
Plate mill
Pipe forming
Plate
101
Products and
services
ArcelorMittal is the only producer offering the full range of steel products and services. From commodity steel to value-added products, from
long products to flat, from standard to specialty products, from carbon steel to stainless steel and alloys, ArcelorMittal offers a complete spectrum
of steel products – and supports it with continuous investment in process and product research. This section provides you with an overview of
ArcelorMittal’s product portfolio.
Consult www.arcelormittal.com for an overview of all products.
Long carbon steel products
Agriculture
Bar flat
Bar hexagons
Bar rounds
Bar SHQ
Bar squares
Beams and sections
Blooms/billets
Casting
Crane rails
Crash barriers
Ingots
Leaf spring flat
Merchant bars
Mining section
Rail
Rails accessories
Rebar
Rod processing
Round cornered square
Sheet piling
Special bar sections
Special section
Wire rod
X
X
X
Appliances Automotive
X
X
X
X
X
X
X
X
Converter/
re-roller
Energy &
mining
X
X
X
X
X
X
X
X
Cold drawn Construction
X
X
X
Fastener
X
X
X
Machinery
Forging – equipment
X
X
X
X
Services
other Transportation
X
X
X
X
X
X
Others
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Flat carbon steel products
Slabs
Hot rolled
Cold rolled
Electrical steel
Hot dip galvanized
Hot dip galvanneal
Enameling steel
Electrogalvanized
Electro zinc-nickel
Aluminized type 1
Aluminized type 2
Usibor (aluminum with boron)
Galvalume/aluzinc
Galfan
Tinplate
Plate
Pre-painted/organic coated
Polymer composites
102
Appliances
Automotive
Construction
Energy
Packaging
Other
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
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X
X
X
X
X
X
X
X
X
X
X
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X
X
X
Overview
Glossary
Coke
A form of carbonized coal burned
in blast furnaces to reduce iron
ore pellets or other iron-bearing
materials to molten iron.
Hot metal
Molten iron produced in the blast
furnace.
HRC hot rolled coil
(see hot rolling).
Limestone
Used by the steel industry to
remove impurities from the
iron made in blast furnaces.
Magnesium-containing limestone,
called dolomite, is also sometimes
used in the purifying process.
Line pipe
Used for transportation of gas,
oil or water generally in a pipeline
or utility distribution system.
Indicated mineral resource
An ‘indicated mineral resource’ is
that part of a mineral resource for
which quantity, grade or quality,
densities, shape and physical
characteristics, can be estimated
with a level of confidence sufficient
to allow the appropriate application
of technical and economic
parameters, to support mine
planning and evaluation of the
economic viability of the deposit.
The estimate is based on detailed
and reliable exploration and testing
information gathered through
appropriate techniques from
locations such as outcrops,
trenches, pits, workings and drill
holes that are spaced closely enough
for geological and grade continuity
to be reasonably assumed.
Ladle metallurgy
The process whereby conditions
(temperature, pressure and
chemistry) are controlled within the
ladle of the steelmaking furnace to
improve productivity in preceding
and subsequent steps and the
quality of the final product.
Hot rolling
Rolling semi-finished steel after
it has been reheated.
Iron ore
The primary raw material in the
manufacture of steel.
HDG hot dip galvanized
(see galvanized steel).
Integrated steelmaker
A producer that converts iron ore
into semi-finished or finished steel
products. Traditionally, this process
required coke ovens, blast furnaces,
steelmaking furnaces, and rolling
mills. A growing number of
integrated mills use the direct
reduction process to produce
sponge iron without coke ovens
and blast furnaces.
Financials
Galvanized steel
Produced when hot or cold rolled
sheet or strip is coated with zinc
either by the hot dipping or
electrolytic deposition process.
Zinc coating applied by the hot
dip method is normally heavy
enough to resist corrosion without
additional protective coating.
Materials electrolytically galvanized
are not used for corrosion resistant
applications without subsequent
chemical treatment and painting,
except in mild corrosive conditions,
due to the thin coating of zinc.
Galvanize is a pure zinc coating.
A special heat-treating process
converts the pure zinc coating to
a zinc/iron alloy coating, and the
product is known as Galvanneal.
Inferred mineral resource
An ‘inferred mineral resource’ is that
part of a mineral resource for which
quantity and grade or quality can be
estimated on the basis of geological
evidence and limited sampling, and
reasonably assumed, but not
verified, geological and grade
continuity. The estimate is based
on limited information and sampling
gathered through appropriate
techniques from locations such as
outcrops, trenches, pits, workings
and drill holes.
Mining operations
Coke ovens
Ovens where coke is produced.
Coal is usually dropped into the
ovens through openings in the roof,
Apparent consumption
Total shipments minus exports plus and heated by gas burning in flues
in the walls between ovens within
imports of steel.
the coke oven battery. After
heating for about 18 hours, the
Bar
A finished steel product, commonly end doors are removed and a ram
pushes the coke into a quenching
in flat, square, round or hexagonal
car for cooling before delivery to
shapes. Rolled from billets, bars
the blast furnace.
are produced in two major types,
merchant and special.
Cold rolling
The passing of sheet or strip that
Basic oxygen steelmaking
The process whereby hot metal and has previously been hot rolled and
steel scrap are charged into a basic pickled through cold rolls, i.e. below
oxygen furnace (BOF). High purity the softening temperature of the
oxygen is then blown into the metal metal. Cold rolling makes a product
that is thinner, smoother, and
bath, combining with carbon and
stronger than can be made by
other elements to reduce the
hot rolling alone.
impurities in the molten charge
and convert it into steel.
Continuous casting
A process for solidifying steel in
Billet
the form of a continuous strand
A piece of semi-finished iron or
rather than individual ingots. Molten
steel that is nearly square and
steel is poured into open bottomed,
is longer than a bloom. Bars
water-cooled molds. As the molten
and rods are made from billets.
steel passes through the mold, the
outer shell solidifies.
Blast furnace (BF)
A large cylindrical structure into
CRC cold rolled coil
which iron ore is combined with
(see cold rolling).
coke and limestone to produce
molten iron.
Crude steel
Steel in the first solid state
Bloom
A semi-finished product, large and after melting, suitable for further
processing or for sale. Synonymous
mostly square in cross-section.
to raw steel.
Blooms are shaped into girders,
beams, and other structural shapes.
Direct reduction
A family of processes for making
Carbon steels
iron from ore without exceeding
The largest percentage of steel
production. Common grades have the melting temperature. No blast
furnace is needed.
a carbon content ranging from
0.06% to 1.0%.
Electrical steels
Specially manufactured cold rolled
Coal
The primary fuel used by integrated sheet and strip containing silicon,
processed to develop definite
iron and steel producers.
magnetic characteristics for use
by the electrical industry.
Coil
A finished steel product such
Electric arc furnace (EAF)
as sheet or strip which has been
An electric furnace used to melt
wound or coiled after rolling.
steel scrap or direct reduced iron.
Flat products
A term referring to a class of
products including sheet, strip and
plate that are made from slabs.
Operations
Alloy steels
Alloy steels have enhanced
properties due to the presence of
one or more special elements, or to
the presence of larger proportions
of elements such as manganese
and silicon that are present in
carbon steels.
€ or EUR
Euro.
103
Glossary
continued
Measured mineral resource
A ‘measured mineral resource’ is
that part of a mineral resource for
which quantity, grade or quality,
densities, shape, and physical
characteristics are so well
established that they can be
estimated with confidence
sufficient to allow the appropriate
application of technical and
economic parameters, to support
production planning and evaluation
of the economic viability of the
deposit. The estimate is based on
detailed and reliable exploration,
sampling and testing information
gathered through appropriate
techniques from locations such as
outcrops, trenches, pits, workings
and drill holes that are spaced
closely enough to confirm both
geological and grade continuity.
Mechanical tubing
Welded or seamless tubing
produced in a large number
of shapes to closer tolerances
than other pipe.
Mineral resource estimates
The mineral resource estimates
constitute the part of a mineral
deposit that have the potential
to be economically and legally
extracted or produced at the time
of the resource determination. The
potential for economic viability is
established through high-level and
conceptual engineering studies.
Mini-mill
A small non-integrated or
semi‑integrated steel plant,
generally based on electric arc
furnace steelmaking. Mini-mills
produce rods, bars, small structural
shapes and flat rolled products.
Net debt
Net debt refers to long-term debt,
plus short-term debt, less cash and
cash equivalents, restricted cash
and short-term investments.
Net ton
See ton.
104
Oil country tubular goods (OCTG)
Pipe used in wells in oil and gas
industries, consisting of casing,
tubing, and drill pipe. Casing is the
structural retainer for the walls;
tubing is used within casing oil wells
to convey oil to ground level; drill
pipe is used to transmit power
to a rotary drilling tool below
ground level.
Open hearth process
A process for making steel from
molten iron and scrap. The open
hearth process has been replaced
by the basic oxygen process in
most modern facilities.
Rolling mill
Equipment that reduces and
transforms the shape of semifinished or intermediate steel
products by passing the material
through a gap between rolls that is
smaller than the entering materials.
Semi-finished products
Products such as slabs, billets,
and blooms which must be rolled
or otherwise processed to create
usable steel shapes.
Sheet
A flat rolled product over
12 inches in width and of
less thickness than plate.
Pellets
An enriched form of iron ore shaped Sheet piling
Rolled sections with interlocking
into small balls.
joints (continuous throughout
the entire length of the piece) on
Pig iron
each edge to permit being driven
High carbon iron made by the
edge-to-edge to form continuous
reduction of iron ore in the blast
walls for retaining earth or water.
furnace.
Plate
A flat rolled product rolled from
slabs or ingots, of greater thickness
than sheet or strip.
Probable reserves
Probable reserves are reserves
for which quantity and grade
and/or quality are computed from
information similar to that used
for proven reserves, but the sites
for inspection, sampling and
measurement are farther apart
or are otherwise less adequately
spaced. The degree of assurance,
although lower than that for proven
reserves, is high enough to assume
continuity between points of
observation.
Proven reserves
Proven reserves are reserves for
which (a) quantity is computed
from dimensions revealed in
outcrops, trenches, working or
drill holes; grade and/or quality
are computed from the results
of detailed sampling; and (b) the
sites for inspection, sampling and
measurement are spaced so closely
and the geologic character is so well
defined that size, shape, depth and
mineral content of reserves are
well-established.
Sintering
A process which combines ores
too fine for efficient blast furnace
use with flux stone. The mixture is
heated to form clumps, which allow
better draft in the blast furnace.
Slab
A wide semi-finished product
made from an ingot or by
continuous casting. Flat rolled steel
products are made from slabs.
Strip
A flat rolled product customarily
narrower in width than sheet, and
often produced to more closely
controlled thicknesses.
Structural pipe and tubing
Welded or seamless pipe and
tubing generally used for structural
or load-bearing purposes aboveground by the construction
industry, as well as for structural
members in ships, trucks, and
farm equipment.
Structural shapes
Rolled flange sections, sections
welded from plates, and special
sections with at least one
dimension of their cross-section
three inches or greater. Included
are angles, beams, channels, tees
and zeds.
Tin coated steel
Cold rolled sheet, strip, or plate
coated with tin or chromium.
Ton (t)
a) A unit of weight in the US
Customary System equal to 2,240
pounds. Also known as long ton.
b) A unit of weight in the US
Customary System equal to 2,000
pounds. Also known as short ton.
Also known as net ton.
Tonne (T)
A metric tonne, equivalent to
1,000 kilograms or 2,204.6 pounds
or 1.1023 short ton.
Sponge iron
The product of the direct reduction
process. Also known as direct
US$ or $
reduced iron (DRI).
US Dollar.
Stainless steels
Stainless steels offer a superior
corrosion resistance due to the
addition of chromium and/or
nickel to the molten steel.
Standard pipe
Used for low-pressure conveyance
of air, steam, gas, water, oil or
other fluids and for mechanical
applications. Used primarily in
machinery, buildings, sprinkler
systems, irrigation systems, and
water wells rather than in pipelines
or distribution systems.
Wire: drawn and/or rolled
The broad range of products
produced by cold reducing hot
rolled steel through a die, series
of dies, or through rolls to improve
surface finish, dimensional accuracy,
and physical properties.
Wire rods
Coiled bars of up to 18.5
millimeters in diameter, used
mainly in the production of wire.
Photography: ArcelorMittal Photo Library; Getty Images;
Sasha Gusov; Stephen Hird; wide.lu.
Designed and produced by www.thoburns.com (United Kingdom).
Printed by Royle Corporate Print, London.
The paper and board used for the production of this report are made from
a combination of post consumer waste and Forest Stewardship Council
approved sources. The printer and paper mill are ISO 14001 accredited
and the printer has CarbonNeutral® status.
Copyright 2012 ArcelorMittal.
Published in May 2012.
To receive a copy of the Fact Book,
please contact:
ArcelorMittal
19, Avenue de la Liberté
L-2930 Luxembourg
Grand Duchy of Luxembourg
T: +352 4792 2484
www.arcelormittal.com

Core strengths, sustainable returns

Transcription

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