ArcelorMittal Annual Report 2008

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Message from the Chairman and CEO continued The current climate will also not compromise the way we do business or our core values of Sustainability, Quality and Leadership. At our senior management convention last September in Delhi, I said that the priority of this Company is to produce Safe Sustainable Steel. This is not dependent on the quantity of steel we produce, but is the basic operating philosophy that we seek to apply to every tonne produced and it will not be compromised by economic fluctuations. We have introduced several important initiatives that support this philosophy during 2008. First of all safety. 2008 saw not only a repeat of our successful annual Health and Safety Day, but also the launch of our new Health and Safety drive, ‘Journey to Zero’. ‘Journey to Zero’ is all about reaching world class standards by integrating Health and Safety into the performance management system of the Group. The driving philosophy is that, if some parts of the ArcelorMittal Group can deliver best practices, then all parts can do so. By learning together and sharing best practices across the entire organization, we can achieve high impact Health and Safety improvements that protect the Company’s greatest asset – our people. In order to leverage this potential, we have identified 15 high priority plants where the improvement plans will be monitored on a weekly basis with the direct involvement of the corporate Health and Safety team. We are making progress. The Lost Time Injury Frequency Rate improved in 2008 to 2.3, compared with 3.3 in 2007. But our ‘Journey to Zero’ continues. 4 If we aspire to our steel being accident-free, we also aspire to it being sustainable. Of course steel, as the most recyclable material in the world, is naturally sustainable. But we want to go beyond this. We want to ensure that our business position in the world creates sustainable benefits for all our stakeholders. This desire has translated into a new Corporate Responsibility (‘CR’) strategy focused on three key areas: Investing in our People through innovative HR policies; Making Steel More Sustainable through focusing on continuous improvement in environmental performance; and Enriching our Communities through engaging more transparently with communities and working in active partnership with local organizations. We see tremendous scope for results in these areas. As one of the largest businesses in the world, we have the ability to have a far-reaching and positive influence in many different areas. We hope our new CR strategy will help us deliver on this ability. And finally there is steel itself. We continue to produce on a daily basis one of the most useful, durable and necessary materials in terms of building the infrastructure of the modern world. The Shanghai World Financial Center, the Freedom Tower in New York and the Federation Tower in Moscow – these are just some of the renowned global structures made from ArcelorMittal steel. This is a big responsibility. Therefore, whatever the economic climate, we must ensure that the quality of our steel is never compromised – that in every country where customers buy our steel they will be guaranteed the highest quality product. We are continually evaluating opportunities to improve our service to customers. This is why we invest in Research and Development (R&D) and are expanding our network of R&D centers around the Group. Our team of 1,500 researchers is working daily on new ways to make lighter, stronger, more environmentally friendly steel. Looking ahead, there can be no doubt that 2009 will be very challenging for our Company. Whilst I hope that the various government stimulus packages will start to bring some relief, we must recognize that we are in the midst of an exceptionally difficult period for the global economy to which there is no easy or swift solution. Nevertheless, I am pleased with the way the Company has adapted so far. Our strategy has been built around designing a company of such a scale and diversity that it has the strength, flexibility and presence to adapt itself to fluctuations in the economic cycle. This current cycle is more extreme than most, but the fact that we have been able to adapt swiftly and take decisive and substantial measures will, I believe, assist in bringing a faster recovery for our Company than might have been the case otherwise.
To this end, I must thank all our employees who have adapted to the required changes with understanding and support. I would also like to thank my colleagues on the Board of Directors, the Group Management Board and the Management Committee who continue to show strong leadership. And finally I would like to extend my thanks to all our stakeholders for their continued commitment to this Company. Lakshmi N Mittal Chairman and CEO 5 Message from the Chairman and CEO continued ArcelorMittal Annual Report 2008
Page 1 and 2: ArcelorMittal Annual Report 2008
Page 3 and 4: Contents Management Report 01 Our P
Page 5 and 6: Our Philosophy ArcelorMittal1 is th
Page 7: Whilst we must accept that real dem
Page 11 and 12: Given the prime importance of Healt
Page 13 and 14: What is the outlook for the year ah
Page 15 and 16: July ArcelorMittal and AREVA sign a
Page 18 and 19: Health and Safety: The Number 1 Pri
Page 20 and 21: Health and Safety: The Number 1 Pri
Page 22 and 23: In 2008, ArcelorMittal and trade un
Page 24 and 25: Board of Directors Lakshmi N Mittal
Page 26 and 27: Board of Directors continued Vanish
Page 28 and 29: Senior Management - Group Managemen
Page 30: “ When people hear the word susta
Page 33 and 34: ArcelorMittal is the largest produc
Page 35 and 36: ArcelorMittal’s brand promise is
Page 37 and 38: International mobility Internationa
Page 39 and 40: ArcelorMittal’s longer-term respo
Page 41 and 42: ArcelorMittal Foundation The Arcelo
Page 43 and 44: The Casa Buna prototype was constru
Page 45 and 46: Las Truchas Vinton Guanajuato Láza
Page 47 and 48: Africa Jorf Lasfar Tiris Zemmour Ye
Page 49 and 50: Mergers and acquisitions have histo
Page 51 and 52: The following table provides a summ
Page 53 and 54: Operational Review - Operating inco
Page 55 and 56: Operating income for the year ended
Page 57 and 58: 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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Auditors’ Report on the Consolida
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Profit and Loss Account ArcelorMitt
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Notes to the Annual Accounts contin
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Auditors’ Report on the Annual Ac
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Notes 160
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Photography: ArcelorMittal Photo Li
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ArcelorMittal Annual Report 2008

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