ANNUAL REPORT ARCELOR 2003 - paperJam

You said that 2003 would be a year ofconsolidation for the Group: have yousucceeded?Arcelor is a success. After an initial consolidation phase,the organisation is now in place and we have lived up toour promises made to the European Commission in termsof the sale of assets. We also defined the strategies foreach or our businesses during the first quarter of 2003and, after discussing them with all our stakeholders,we began to implement them to the point where we soonexpect to reap the first dividends. Our customers andshareholders trust us because we keep our commitments.But we must go beyond that! This is the reasonwhy we have thoroughly reorganised our research anddevelopment organisation, putting the focus in all ourmarket segments on innovation. We also initiated areview of our supply chain in order to improve the qualityof our service and differentiate ourselves from ourcompetitors.As planned, we are deploying our Sustainable Developmentpolicy based on the eight principles mentionedearlier. In this context, we have defined the ArcelorPrinciples of Responsibility that we must now put intopractice on a daily basis. Two essential dimensions aresafety, first and foremost, as well as social dialogue.The European Works Council, set up at the very beginningof the merger, is indispensable for a concerted approachto the Group’s major strategic challenges.Is the race already won?Much remains to be done! In the Stainless Steels sector,we must continue to improve profitability by refocusingon flat products in Europe (UGINE & ALZ) and Brazil(Acesita) and by trying to find the best solutions for theother activities, be it through partnerships, sales oralliances. We are also facing significant threats thatwe must anticipate: whether this is the rapid increase inraw material prices (ore, coal, coke, scrap) or transportcosts (freight), the trend in exchange rates, or the abilityof Europe to generate growth on its own.In all cases, it is our ability to compete and, therefore,our future, that is at stake. All our teams are mobilisedfor this competitive battle, which includes ambitiousplans for efficiency savings and improvement throughoutthe Group.ANNUAL REPORT ARCELOR 2003 5