Rebuilding profitability and mitigating risk - ArcelorMittal South Africa

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Raw material increases and incidents have driven costs higher Major incidents have increased fixed costs and reduced efficiencies 6,400 6,200 6,000 5,800 5,600 5,400 Saldanha Corex burn Saldanha bin collapse, BF VDP & Newcastle Newcastle dust catcher, BF VDP & Newcastle Impact of major incidents since 2009 cause lost opportunity Newcastle taphole repair, VDP BF burn through VDP BOF fire 140 120 100 80 60 Raw material benefit diluted with decreasing international prices 240 220 200 180 160 5,200 40 140 5,000 20 120 0 2009 2010 Major incidents Liquid steel production Fixed cost $/t 2011 2012 2013F 0 100 2006 2007 2008 2009 2010 2011 2012 2013 YTD AMSA RM index (Iron ore, coal, scrap) (Base 100 = 2006) International RM basket index (Base = 100) 5
Improving performance challenges remain at Vanderbijlpark • Solid progress at Saldanha, Newcastle and Vereeniging • Reline of blast furnace 5 will further improve efficiencies at Newcastle • Ongoing Vanderbijlpark concerns: ‣ Exposure to escalating costs of Thabazimbi ore & Tshikondeni coal ‣ Efficiencies to be improved ‣ Underutilization of downstream operations ‣ Off-gas utilization potential ‣ Weak domestic flat market ArcelorMittal South Africa business units EBITDA ($/t) Vdbp Saldanha Newcastle Vereeniging 2008 2009 2010 2011 2012 6
Page 1 and 2: ArcelorMittal South Africa Rebuildi
Page 3 and 4: Agenda • Financial performance
Page 5: 2000/01 2000/04 2001/03 2002/02 200
Page 9 and 10: Medium term $100/t EBITDA target Ta
Page 11 and 12: A systematic and robust risk manage
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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