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 15: Income Tax The Company is the head of a tax consolidation and is fully liable for the overall tax liability. Each of the entities included in the tax consolidation is charged with the amount of tax that relates to its individual taxable profit. As a consequence of the net tax losses within the tax consolidation, no income tax is payable in respect of 2008 (2007: nil). The amount charged to affiliated undertakings amounts to 1,772 (2007: 46). Note 16: Commitments and Contingencies Commitments given Guarantees on debts 1 939 19,800 Other commitments 2 1,134 — Foreign exchange derivative instruments 3 4,989 — Total 7,062 19,800 1 The decrease in the guarantees on Group debts is a consequence of the transfer of debt from ArcelorMittal Finance S.C.A. (note 12) 2 Other commitments comprise amounts committed with regard to credit lines and guarantees given on behalf of Group companies. 3 Foreign exchange derivative instruments mainly consist of EUR/USD currency swaps that have matured on January 2, 2009. As of December 31, 2008, a loss amounting to 87 has been recognized on these instruments. 156 Year ended Year ended December 31, 2008 December 31, 2007 Available lines of credit The Company has available lines of credit for an aggregate amount of 5,829 as of December 31, 2008 (2007: nil). Contingencies On January 8, 2008, the Company received a writ of summons on behalf of four of its hedge fund shareholders to appear before the civil court of Luxembourg. The summons was also served on all natural persons sitting on the Board of Directors of the Company at the time of the merger and on the significant shareholder. The claimants request, among other things (1) the cancellation and the amendment of the corporate decisions relating to the second-step merger in order to reflect an exchange ratio of eleven ArcelorMittal (the entity resulting from the first step merger) shares for seven Arcelor shares (ignoring the impact of the share capital restructuring of Arcelor), accompanied by the allocation by the Significant shareholder or the company of additional shares to the claimants to reflect this revised ratio, and alternatively, (2) the payment of damages by the defendants (jointly and severally or severally, at the court’s discretion), in an amount of EUR 180 million. ArcelorMittal submitted its brief in response on October 16, 2008, challenging the validity, the admissibility and the merits of the claims. Hearing and judgment in the first instance are not expected before the end of 2009 or early 2010. Note 17: Staff Average number of staff Year ended Year ended December 31, 2008 December 31, 2007 Employees 411 318 Workers 28 31 Total 439 349
Note 18: Directors’ Remuneration Members of the Board of Directors are entitled to a total remuneration of 7.8 for the year 2008 (2007: 6.5) Note 19: Stock Option Plan On August 5, November 10 and December 15, 2008 ArcelorMittal granted respectively 7,255,950, 20,585 and 48,000 options to a group of key employees at an exercise price of USD 82.57, USD 22.25 and USD 23.75, respectively. The options expire on August 5, November 10 and December 15, 2018, respectively. Allocated share options at December 31, 2008 are as follows: Number of shares Exercise price Maturity Plan 1999 (legacy Mittal Steel) 186,099 11.94 September 14, 2009 Plan 2000 (legacy Mittal Steel) 165,100 8.57 June 1, 2010 Plan 2002 (legacy Mittal Steel) 213,345 2.26 April 5, 2012 Plan 2003 17,622 11.78 June 30, 2010 Plan 2004 29,373 15.96 June 30, 2011 Plan 2005 (legacy Mittal Steel) 1,737,997 28.75 August 23, 2015 Plan 2005 11,429 19.69 June 30, 2012 Plan 2006 (legacy Mittal Steel) 2,739,507 33.76 September 1, 2016 Plan 2006 1,445,757 41.93 June 30, 2013 Plan August 2007 5,729,402 64.30 August 2, 2017 Plan December 2007 13,000 74.53 December 11, 2017 Plan August 2008 7,201,250 82.57 August 5, 2018 Plan November 2008 20,585 22.25 November 10, 2018 Plan December 2008 48,000 23.75 December 15, 2018 The movements in the number of outstanding share options during the year are as follows: Number of shares options 2008 2007 Options outstanding at the beginning of the year 13,579,438 1,447,793 Effect of legal merger — 8,541,644 Options granted during the year 7,324,535 5,978,200 Options forfeited during the year (43,629) (36,378) Options exercised during the year (954,844) (2,129,255) Options expired during the year (347,034) (222,566) Options outstanding at the end of the year 19,558,466 13,579,438 Note 20: Subsequent Events On February 11, 2009 ArcelorMittal announced that it had secured commitments from banks for two Forward Start facilities totaling 4,800 (“the Forward Start facilities”), subject to certain conditions. A 3,250 revolving credit facility in respect of these commitments was entered into on February 13, 2009. A Forward Start facility provides a committed facility to refinance an existing facility (which is not amended and continues in force), and therefore certainty as to the availability of funds for that refinancing. If drawn, the Forward Start facilities would effectively extend the maturities of 4,800 principal amount of indebtedness to 2012 (from original maturity dates in 2009-2011). 157 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 110 and 111: Notes to the Consolidated Financial
Page 150 and 151: Auditors’ Report on the Consolida
Page 152 and 153: Profit and Loss Account ArcelorMitt
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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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