Rebuilding profitability and mitigating risk - ArcelorMittal South Africa

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1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 A sound balance sheet with focus on working capital management Strong balance sheet • Net cash 1Q13 improved by USD26m • Intra-month borrowing (peak-demands) • Sufficient /unutilized short term lines • Very low financial leverage • Non-core assets Optimizing working capital • 4Q12: Lower raw material stocks from improved logistics in cooperation with Transnet • 1Q13: Successful preservation during fire incident • Commercial terms and cycle time management provide opportunities OWCR, rotation days and cash balances ($m) Target 80 1,200 1,000 800 600 400 200 0 140 120 100 80 60 40 20 0 80 days rotation days Working capital ($millions) Rotation days* Net cash ($millions) *Rotation days are defined as days of accounts receivable plus days of inventory minus days of accounts payable. Days of accounts payable and inventory are a function of cost of goods sold of the quarter on an annualized basis. Days of accounts receivable are a function of sales of the quarter on an annualized basis. 9
A systematic and robust risk management process is in place Top 10 Risk Register Mitigation actions • Robust legal process • Competitive watch and pricing • Implement software solutions (SAP) • Benchmarking, reducing gaps • Business improvement • Blast furnace reline • Logistics organisation and cooperation • Power generation • Renegotiation of collective labour agreement 10
Page 1 and 2: ArcelorMittal South Africa Rebuildi
Page 3 and 4: Agenda • Financial performance
Page 5 and 6: 2000/01 2000/04 2001/03 2002/02 200
Page 7 and 8: Improving performance challenges r
Page 9: Medium term $100/t EBITDA target Ta
Page 13 and 14: Insurance will remain in place •
Page 15: Thank you www.arcelormittalsa.com

Rebuilding profitability and mitigating risk - ArcelorMittal South Africa

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