ANNUAL REPORT ARCELOR 2003 - paperJam

2004 marks the beginning of the “transformationof the Group”: what does that mean?In Western Europe, we are faced with a cost structurethat puts us at a disadvantage in some of our businesseswhen we are pitted against Russian, Ukrainian,South American and Chinese competitors. The newrules of the global game and the risks of regulatorydistortions between the different economic regions ofthe world – such as the regulations relating to thereduction of greenhouse exhaust gases or theprotectionism that is still too prevalent in world trade –will undoubtedly guide our investment decisions in thefuture.During the last two years, we have concentrated onimproving and restoring the health of our balance sheet.Starting in 2004, this will progressively enable us to takeadvantage of the growth opportunities that presentthemselves. Tomorrow, Arcelor will be an even moreglobal player than it is today: we will welcome newpartners, step up the exchange of best practices andbegin once more to conquer new markets by constantlyrejuvenating our offer of products and services.Our steel products must meet new challenges interms of safety, service, environment and aesthetics.They must become true solutions for our customerswhile at the same time furthering the SustainableDevelopment goals that we have set for ourselves andthat we will fulfil. We must continue to innovate toachieve further productivity gains and to develop steelproducts that are more environmentally friendly, strongerand lighter, and will, for example, reduce CO 2 emissionsin the automotive industry and satisfy our customersin terms of quality and service. We also have highambitions in the construction sector where steelis omnipresent and gives free rein to the imaginationand audacity of the architect. The domestic electricalappliance, packaging and engineering markets areevolving rapidly and are important markets for us whereour steel products must make a difference.We also must take advantage of the Europeanexpansion and build alliances to achieve a betterbalance for our business at the international leveland to consolidate our global leadership.The creation of Arcelor has sent a strong signal tothe markets: we are convinced that the steel businesscan be profitable and can create long-term value,for the greater benefit of our employees and all ourstakeholders, customers, shareholders and the communitieswhere our businesses are located. Arcelorwill not stop halfway. We must perform better in termsof innovation, cost and entrepreneurial development.These are the challenges for the transformation ofArcelor.What are Arcelor’s principal assets in order tosucceed in this new phase of growth?The professionalism and the unfailing motivation ofthe men and women at Arcelor who are raising highthe banner of steel. I would like to take this opportunity,on behalf of the Board and on my own behalf, to expressour heartfelt thanks for their commitment and contributionto Arcelor’s success.Guy DolléChief Executive OfficerANNUAL REPORT ARCELOR 2003 7