Arcelor's capital increase - Vernimmen

SUMMARY PRESENTATION OF THE GROUP
Arcelor was born out of the commitment of three steel makers, Aceralia, Arbed and Usinor, to create
a leading company in the global steel industry.
The creation of Arcelor was announced on 19th February, 2001 and was achieved on 18th February,
2002, with the listing of Arcelor on the Luxembourg Stock Exchange, Euronext Paris, Euronext Brussels
and the Spanish Stock Exchanges.
The Arcelor Group has four principal sectors: Flat Carbon Steels, Long Carbon Steels, Stainless
Steels, and Distribution-Transformation-Trading.
Employing 98,000 people in over 60 countries, Arcelor is the largest steelmaker in the world, with
production of 44 million tonnes of steel, and revenues in 2003 of EUR 26 billion. It holds a leading market
share in all its major markets: automotive, construction, domestic electrical appliances, packaging and
general industry.
Arcelor is the world’s leading producer of flat products, both in terms of volume and revenues, with
total shipments of nearly 25.6 million metric tons in 2003. With 48,000 employees, this business sector had
revenues of nearly EUR 14 billion in 2003, which is approximately 7% of the global market. The product
portfolio covers the entire range of thin flat steels: hot-rolled coils, cold-rolled coils and coated sheets.
These products are used in automobile production, domestic electrical appliances, packaging,
construction, civil engineering, mechanical construction and processing.
Arcelor is also the world’s largest producer of long products, with total shipments of nearly
12.2 million metric tons in 2003. This business sector has nearly 18,000 employees and had revenue of
approximately EUR 4.4 billion in 2003. It produces three categories of products:
• commodity products (rolled long products): lightweight and medium-weight beams, merchant steels
and concrete reinforcing bars;
• speciality products (rolled long products): sheet piling, heavy beams, special sections and rails; and
• drawn-wire products: steelcord, low-carbon steel and high-carbon steel.
Rolled long products are used principally in the construction, infrastructure and capital equipment
markets. Drawn-wire products have a number of uses: tyre manufacture (steelcord), agriculture (vine
wires, enclosures), industry (galvanised wires for cable sheathing) and construction (fibres).
Arcelor is one of the world leaders in the stainless steel business, both in terms of volume and
revenues. In 2003, total shipments amounted to nearly 2.4 million metric tons. This business sector has
close to 14,200 employees and had revenue of EUR 4.3 billion in 2003, with an approximately 14% share of
the world market for cold-rolled products. Arcelor produces virtually the whole range of stainless and alloy
products.
The product portfolio is made up of the following categories:
• flat stainless products;
• long stainless products and alloy products;
• precision stainless metal strips and nickel alloy flat products; and
• special plates in stainless steels and specialty steels.
Stainless steel products are used in four principal markets: household appliances (large electrical
appliances and household equipment), automotive (especially in catalytic converters), construction and
urban furniture (facades and equipment) and general industry (such as the food, chemicals and oil
industries).
Arcelor’s Distribution-Transformation-Trading sector develops its activities based on steel produced by
the Group or purchased from third parties. The sector has almost 15,000 employees and had revenues of
EUR 8.0 billion in 2003.
The main features of Arcelor’s Distribution-Transformation-Trading business are:
• close relations with a broad client base maintained by a large sales force;
• an emphasis on service and logistics;
• expertise in the downstream promotion of ‘‘Steel Solutions’’; and
• the addition of value to marketed steel products.
The Distribution-Transformation-Trading business is organised into six units, which carry out specific
but complementary activities.
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