ArcelorMittal Annual Report 2008

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Notes to the Consolidated Financial Statements continued ArcelorMittal and Subsidiaries (millions of U.S. dollars, except share and per share data) The following tables detail the components of net periodic other post-employment cost: Components of net periodic cost (benefit) Service cost 62 9 19 — 16 18 Interest cost 139 64 52 1 22 — Expected return on plan assets (3) (2) — — (1) — Curtailments and settlements 20 11 13 — (4) — Amortization of unrecognized past service cost 4 — — — 4 — Amortization of unrecognized actuarial (gain) loss 23 27 — (1) (3) — Total 245 109 84 — 34 18 Components of net periodic cost (benefit) Service cost 54 12 14 — 23 5 Interest cost 212 121 48 1 34 8 Expected return on plan assets (16) (15) — — (1) — Curtailments and settlements 6 6 — — — — Amortization of unrecognized past service cost 1,504 1,458 1 — 2 43 Amortization of unrecognized actuarial (gain) loss 6 12 (15) — 9 — Total 1,766 1,594 48 1 67 56 Weighted-average assumptions used to determine benefit obligations at December 31, Health care cost trend Cash flows In 2009, the Company expects its cash contributions to amount to 543 for pension plans, 289 for other post employment benefits plans (including 100 related to USW agreement in USA) and 134 for the defined contribution plans. Cash contributions to the defined contribution plans, sponsored by the company, amounted to 115 in 2008. Balance sheet 134 December 31, 2007 TOTAL U.S. CANADA BRAZIL EUROPE OTHERS December 31, 2008 TOTAL U.S. CANADA BRAZIL EUROPE OTHERS Pension Plans Other Post-employment Benefits 2007 2008 2007 2008 Discount rate 5.17% – 10.77% 5.42% – 10.77% 2.94% – 10.77% 4.25% – 10.77% Rate of compensation increase 2% – 8% 2.50% – 9.2% 1% – 8% 1.5% – 7.12% Expected long-term rate of return on plan assets 3.54% – 11.25% 3.47% – 11.72% 4.5% – 5% 4.5% – 6.11% December 31, December 31, 2007 2008 Health care cost trend rate assumed 2.5% – 6.31% 3% – 5.71% At December 31, At December 31, 2007 2008 Pension plan benefit 2,569 2,219 Other post-employment benefit 2,583 3,966 Early retirement benefit 780 669 Other long-term employee benefits 312 257 Total 6,244 7,111
Sensitivity analysis The following information illustrates the sensitivity to a change in certain assumptions for ArcelorMittal’s pension plans (as of December 31, 2008, the defined benefit obligation (“DBO”) for pension plans was 9,359): Effect on 2009 Pre-Tax Pension Expense Effect of December 31, Change in assumption (sum of service cost and interest cost) 2008 DBO 100 basis point decrease in discount rate 1 973 100 basis point increase in discount rate (3) (818) 100 basis point decrease in rate of compensation (31) (240) 100 basis point increase in rate of compensation 36 264 100 basis point decrease in expected return on plan assets 56 — 100 basis point increase in expected return on plan assets (56) — The following table illustrates the sensitivity to a change in the discount rate assumption related to ArcelorMittal’s OPEB plans (as of December 31, 2008 the DBO for post-employment benefit plans was 5,254): Effect on 2009 Pre-Tax OPEB Expense Effect of December 31, Change in assumption (sum of service cost and interest cost) 2008 DBO 100 basis point decrease in discount rate (7) 580 100 basis point increase in discount rate 6 (464) 100 basis point decrease in healthcare cost trend (36) (441) 100 basis point increase in healthcare cost trend 40 498 The above sensitivities reflect the effect of changing one assumption at a time. Actual economic factors and conditions often affect multiple assumptions simultaneously, and the effects of changes in key assumptions are not necessarily linear. Experience adjustments The two-year history of the present value of the defined benefit obligations, the fair value of the plan assets and the surplus or the deficit in the pension plans is as follows: At December 31, At December 31, (in millions of U.S. dollars) 2007 2008 Present value of the defined benefit obligations (10,512) (9,359) Fair value of the plan assets 8,091 5,788 Deficit (2,421) (3,571) Experience adjustments: (increase)/decrease plan liabilities (195) (122) Experience adjustments: increase/(decrease) plan assets (201) (1,712) This table illustrates the present value of the defined benefit obligations, the fair value of the plan assets and the surplus or the deficit for the OPEB plans is as follows: At December 31, At December 31, (in millions of U.S. dollars) 2007 2008 Present value of the defined benefit obligations (2,805) (5,254) Fair value of the plan assets 49 635 Deficit (2,756) (4,619) Experience adjustments: (increase)/decrease plan liabilities (33) (142) Experience adjustments: increase/(decrease) plan assets — (19) 135 2008 Consolidated Financial Statements continued ArcelorMittal Annual Report 2008
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ArcelorMittal Annual Report 2008
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Contents Management Report 01 Our P
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Our Philosophy ArcelorMittal1 is th
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Whilst we must accept that real dem
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To this end, I must thank all our e
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Given the prime importance of Healt
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What is the outlook for the year ah
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July ArcelorMittal and AREVA sign a
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Health and Safety: The Number 1 Pri
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Health and Safety: The Number 1 Pri
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In 2008, ArcelorMittal and trade un
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Board of Directors Lakshmi N Mittal
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Board of Directors continued Vanish
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Senior Management - Group Managemen
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“ When people hear the word susta
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ArcelorMittal is the largest produc
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ArcelorMittal’s brand promise is
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International mobility Internationa
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ArcelorMittal’s longer-term respo
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ArcelorMittal Foundation The Arcelo
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The Casa Buna prototype was constru
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Las Truchas Vinton Guanajuato Láza
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Africa Jorf Lasfar Tiris Zemmour Ye
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Mergers and acquisitions have histo
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The following table provides a summ
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Operational Review - Operating inco
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Operating income for the year ended
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Customers and Innovation Much of th
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• In Russia, ArcelorMittal was in
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Analysts and Investors As the world
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Corporate Governance Board of Direc
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Corporate Governance continued Grou
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Corporate Governance continued Comp
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Corporate Governance continued The
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Share Capital and Voting Rights Arc
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By 2012, Spain is expected to have
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Underpinning all our operations is
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Consolidated Balance Sheets Arcelor
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Consolidated Statements of Changes
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Notes to the Consolidated Financial
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Page 88 and 89: Notes to the Consolidated Financial
Page 150 and 151: Auditors’ Report on the Consolida
Page 152 and 153: Profit and Loss Account ArcelorMitt
Page 154 and 155: Notes to the Annual Accounts contin
Page 162 and 163: Auditors’ Report on the Annual Ac
Page 164 and 165: Notes 160
Page 166 and 167: Notes 162
Page 168: Photography: ArcelorMittal Photo Li
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ArcelorMittal Annual Report 2008

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