2. ORGANISATION OF THE SECTORThe year was dedicated to integrating and streamliningthe sector’s operations. DTT thus engaged in an activeprocess to streamline its portfolio of companies, primarilythrough the disposal of non-core activities.The sector is now organised into six business units, eachcarrying out their specific but complementary activities.This new organisation improved the logistics of the sector’sbusinesses and in particular their commercial efficiency,and simplified the central functions.3. THE SECTOR’S PRODUCTS ANDMARKETS3.1. Arcelor Trading and Distribution (AND)AND is a world leader in steel distribution with200 facilities spread over 30 countries, distributingover 4 million tonnes of steel products per year.AND comprises companies that handle steel tradingand warehousing. These are multi-specialist businessesoffering an extensive range of products: sheets andplates, beams, tubes, merchant rolled products,stainless steel and aluminium flat and long products,technical products and special steels as well as concretereinforcement products. The customer base includesmultinationals as well as private individuals.It also offers a range of “customised” products thanks tothe downstream finishing service centres (manufacturedsemi-finished products, structural frames for buildings,crane and wind-turbine structures, etc.) and downstreampartnerships (examples of partner enterprises: JohnDeere, Potain, Snecma, Hermanussen, etc.).3.2. Arcelor Steel Service Centres (ASSC)ASSC is Arcelor’s preferred vector in the finished flatcarbon steel market with over 5,000 industrial customersin 18 countries, served by 44 plants offering a completerange of finishing products.The Steel Service Centres finish products to thedimensions requested by customers in ready-to-usequantities; for example: hot- and cold-rolled products,metallic- or organic-coated slit strip, sheet, blanks,specific components or sub-assemblies produced bysheet metalworking.They also provide a full line of services such as:- a holistic product offer backed by the range and qualityof Arcelor products,- technical expertise, innovative offers and product qualityfollow-up,- appropriate logistics.In <strong>2003</strong>, ASSC began to expand its range downstreamthrough various customer partnerships with automotivesuppliers and domestic electrical appliance manufacturersin particular.Finally, several ISO 14001 certifications were eitherattained or confirmed, with quality certifications nowcovering a large portion of the operation.In <strong>2003</strong>, AND continued to expand its European networkwith the formation and the acquisition of severalcompanies:- establishment of Arcelor Profil, Plaques et Découpes,Arcelor Distributie in Rumania and a coordination centrefor Eastern Europe in Slovakia;- acquisition of the Guille and Ferrometalli companiesto complete the plate and profiling activity, Krisper d.o.o.in Slovenia and Ravené Schäfer (DEAG POSSEHL) inGermany.58<strong>ANNUAL</strong> <strong>REPORT</strong> <strong>ARCELOR</strong> <strong>2003</strong>
3.3. Arcelor ConstructionArcelor Construction is the European leader in themarket for metal products for the envelope, secondaryframework and structure of industrial and agriculturalbuildings (cladding, sections, flooring, roofing, insulatingsandwich panels) and operates in 27 countries through50 companies. Its business represents 553 thousandtonnes of sections and 14.5 million square metres ofpanels sold in <strong>2003</strong>.Arcelor Construction has integrated upstream facilitieswith a rolling mill, galvanising and prepainting linethat give it great flexibility in meeting the needs of itscustomers in the construction industry (structural metalworkers,cladding and roofing specialists, generalist andspecialist stockholders).Arcelor Construction is developing new products andconcepts, notably steel facade elements, fire resistance,extended spans in partnership with Long Carbon Steelsand, in general, the contribution made to sustainabledevelopment through the energy savings achieved withsteel construction solutions.3.4. Arcelor PUM ProcessingArcelor PUM Processing was established in early <strong>2003</strong>based on the heavy processing equipment of the Reimsplant: a continuous pickling process, a cold-rollingprocess (4-high reversing mill), annealing in a hydrogenatmosphere and a skin-pass installation.Arcelor PUM Processing produces pickled, cold-drawn,cold-rolled and galvanised coils.This unit of 350 people serves the other DTT businessunits.All Arcelor PUM Processing facilities obtained renewalof their ISO 14001 certification in <strong>2003</strong>.3.5. Arcelor InternationalArcelor International is the Group’s commercial organisationfor the following activities:- the marketing and sale of the products of the FlatCarbon Steels and Long Carbon Steels sectors inexport markets, complementing the specific organisationsof these two sectors in their markets;- trading of steel products, i.e. purchase from thirdparties and resale to customers within the frameworkof a full service offer that extends from logistics tofinancing to technical support.The unit is also active in the supply of finished or semifinishedproducts from other sectors of the Group andinternational monitoring of commercial developments.Arcelor International has positioned itself as a “differentiated”,high added-value network with 300 employeesworldwide in a network of 41 regional offices.In <strong>2003</strong>, Arcelor International contributed its Considarsubsidiaries to a joint venture named Traxys withBelgium’s Umicore Group and its commercial subsidiarySogem. Traxys is active in distributing, marketing andtrading non-ferrous metals, their ores and concentrates,as well as ferro-alloys. In these areas, Traxys is a worldclassplayer with over 20 offices around the globe. Theassets and management of Traxys are divided equallybetween Arcelor and Umicore.3.6. Arcelor ProjectsArcelor Projects specialises in providing customisedand optimised steel solutions for the construction oflarge civil engineering, public works and offshorestructures projects such as port facilities, undergroundcar parks and tunnels: thus, Arcelor Projects is providingfoundation structures for the reconstruction work at“Ground Zero” in New York. Arcelor Projects calls uponthe services of four companies based in Europe, Northand Central America, and Asia. The solutions it offersconsist of a wide range of products – sheet piling,H-piles and pipe piling, girders, tubes, heavy plates –and high value-added services, including design,assembly, finishing, technical support and logistics.Arcelor Projects consists of two operating entities:- “Foundation Solutions”, which offers products andservices for port development, underground car parks,etc.- “International Projects”, which supplies high-tech steelstructures provided as a package with logistical supportand specialised documentation, for example for offshorestructures.activities of the Group > distribution-processing-trading<strong>ANNUAL</strong> <strong>REPORT</strong> <strong>ARCELOR</strong> <strong>2003</strong> 59
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ANNUAL REPORT ARCELOR 2003ANNUAL RE
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Message from the Chairman ofthe Boa
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Message from the Chairman ofthe Man
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Does this mean that the Group is en
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- Page 12 and 13: Portrait of the GroupArcelor was bo
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- Page 92 and 93: Implementation of the Sustainable D
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- Page 100 and 101: Group profitabilityObjectives• Av
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Dialogue with all stakeholdersObjec
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Dialogue with societyArcelor partic
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Development of individual interview
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Scientific CouncilChairman:• Marc
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Corporate governanceObjectives• E
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SponsorshipEvery year, the various
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Durability: Manufacturers are now a
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122ANNUAL REPORT ARCELOR 2003
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GENERAL INFORMATION ABOUTARCELORCor
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Cold-rolled flat products: In 2001,
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Safeguard clause• United States:
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130ANNUAL REPORT ARCELOR 2003
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Consolidated financial statementsof
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CONSOLIDATED CASH FLOW STATEMENTIn
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NOTES TO THE CONSOLIDATED FINANCIAL
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Assets intended to be disposed of o
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AmortisationAmortisation is recogni
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13) EquityRepurchase of share capit
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18) Other provisionsA provision is
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The major changes in the consolidat
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NOTE 4 - INTANGIBLE ASSETSGoodwill
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NOTE 5 - PROPERTY, PLANT AND EQUIPM
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NOTE 7 - OTHER INVESTMENTSThe main
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NOTE 13 - EQUITY13.1 Issued capital
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NOTE 15 - MINORITY INTERESTSIn the
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16.6 Detail of main individual long
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17.2.2 Additional pension plansFran
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17.2.3 Leaving indemnities (continu
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18.2 Early retirement plansAn actua
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NOTE 22 - NET FINANCING RESULTIn EU
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NOTE 24 - RELATED PARTY DISCLOSURES
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The portfolio of financial instrume
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NOTE 26 - COMMITMENTS GIVEN AND REC
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27.1 Breakdown by activity (continu
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27.2 Geographical breakdown(Figures
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NOTE 29 - RECONCILIATION OF THE ARC
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Company name Consolidation Country
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Company name Consolidation Country
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Company name Consolidation Country
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Company name Consolidation Country
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Company name Consolidation Country
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Audit31, Allée Scheffer Telephone
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Annual accounts Arcelor S.A.ANNUAL
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INCOME STATEMENT FROM JANUARY 1 TO
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NOTE 3 - STATEMENT OF TANGIBLE FIXE
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NOTE 8 - PROVISIONS FOR LIABILITIES
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NOTE 14 - DIRECTORS’ REMUNERATION
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Arcelor Ordinary General Meeting on
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GlossaryAnnealing:The heat treatmen
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How steel is made?a 3-stage process
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Arcelor’s main steel-manufacturin
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NOTES210ANNUAL REPORT ARCELOR 2003
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Concept and realization133, avenue