ArcelorMittal Annual Report 2008

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Notes to the Annual Accounts continued ArcelorMittal, Société Anonyme (expressed in millions of U.S. dollars, unless otherwise stated) Note 6: Amounts Owed by Affiliated Undertakings Amounts owed by affiliated undertakings have increased by 7,605 over the year under review. This movement is primarily a consequence of the inclusion of the following elements within this amount: i) The cash-pooling accounts held with ArcelorMittal Treasury SNC which have increased over the year as a consequence of the new external financing (notes 11 & 12). ii) The amounts receivable from other Group companies as a consequence of the tax consolidation (notes 13 & 15). Note 7: Transferable Securities Own shares Acquisition cost Opening balance 902 Additions 3,102 Disposals (245) Closing balance Value adjustments 3,759 Opening balance — Charge for the year (2,461) Closing balance Net book value (2,461) Opening balance 902 Closing balance 1,298 As of December 31, 2008, the Company holds 54,290,240 (2007: 17,173,201) of its own shares. The value adjustments of 2,461 represent the difference between the aggregate cost of the own shares and the market value determined on the basis of the Euronext market price as of December 31, 2008. Additions for the year relate to own shares acquired in connection with the share buy-back program announced by the Company on December 12, 2007. Disposals for the year comprise the transfer of shares to Corea S.A. (part of the Group) and the sale of shares to ArcelorMittal USA Inc (“AMUSA” – part of the Group) as described below. On December 15, 2008, the Company entered into an agreement in virtue of which a total of 833,143 own shares with a carrying value of 20 have been transferred to Corea S.A. for a period that ends on December 31, 2009. The agreement may be tacitly extended for successive periods of one year unless terminated by either party. At the end of the agreement, Corea S.A. shall reimburse the Company with either the same number and type of ArcelorMittal shares or the equivalent in cash subject to the Company’s prior approval. On December 19, 2008, the Company entered into an agreement with AMUSA in virtue of which it agrees to sell to AMUSA; on specific dates in the period ranging from December 19, 2008 to September 30, 2009 a number of own shares for an aggregate market value of 130. This agreement has been concluded in order to fund AMUSA’s pension trust. Pursuant to this agreement, 1,121,995 shares have been sold to AMUSA on December 19, 2008 for 27. 152
Note 8: Capital and Reserves Balance as at January 1, 2008 1,448,826,347 9,269 17,811 441 902 3,926 7,611 39,960 Allocation of net result — — — 381 — 7,230 (7,611) — Profit for the year — — — — — — 19,094 19,094 Directors’ fees — — — — — (3) — (3) Dividends paid * — — — — — (2,112) — (2,112) Reserve for own shares — — — — 396 (396) — — Balance as at December 31, 2008 1,448,826,347 9,269 17,811 822 1,298 8,645 19,094 56,939 * Equivalent to the 2007 dividend of 2,173; net of dividends on own shares. Number Subscribed Share premium Reserve for Profit brought Profit for of shares capital amount Legal reserve own shares forward the year Total 8.1: Share capital and share premium account At December 31, 2008 and 2007 the subscribed capital comprises 1,448,826,347 ordinary shares, fully paid up and amounting to EUR 6,345,859,400 (9,269). During an extraordinary general meeting of the shareholders held on May 13, 2008, it was resolved to increase the authorized share capital from EUR 6,438,600,000 (represented by 1,470,000,000 shares without nominal value) to EUR 7,082,460,000 (represented by 1,617,000,000 shares without nominal value). To the knowledge of the Board, the shareholding may be specified as follows: Mittal Investments S.à r.l. 36.24% Ispat International Investment S.L. 6.78% Other shareholders * 56.98% Total 100.00% * Including own shares and shares held by affiliated undertakings. 8.2: Legal reserve In accordance with Luxembourg Company law, the Company is required to transfer a minimum of 5% of its net profits for each financial year to a legal reserve. This requirement ceases to be necessary once the balance of the legal reserve reaches 10% of the issued share capital. The legal reserve is not available for distribution to the shareholders. 8.3: Reserve for own shares The Board of Directors shall request the upcoming General Meeting of Shareholders to approve the allocation of 396 from the profit brought forward in order to establish a non distributable reserve equivalent to the carrying value (note 7) of its own shares in accordance with Luxembourg Company Law. December 31, 2008 153 2008 Annual Accounts 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 106 and 107: 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
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Page 168: Photography: ArcelorMittal Photo Li
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ArcelorMittal Annual Report 2008

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