The CEO provides a summary of ArcelorMittal's 2011 annual report. Key points include: 1) Safety improvements reduced lost time injury frequency rate by 20% but more progress is needed. 2) EBITDA increased 18.7% to $10.1 billion while net income decreased due to one-time charges. 3) Challenging economic conditions led to paused growth projects and temporary plant closures. 4) Five core strengths position the company for continued success: quality assets, cost improvements, automotive steel, mining, and a stronger balance sheet.

1. Message from the
chairman and CEO
Dear shareholders, At the beginning of 2011 we excellent examples that
held a special safety summit at demonstrate what can be achieved.
ArcelorMittal Dofasco in Canada. Tubular products has reduced its
Thank you for taking This summit concluded with a frequency rate by more than 50%
the time to read commitment to embed health from 1.92 to 0.81 – an impressive
ArcelorMittal’s 2011 and safety in our core values; achievement. Our mining division
adapt our leadership style to better has improved its frequency rate
annual report, address employee commitment from 1.63 to 1.18. Tubarão in Brazil
‘Core strengths, and engagement; ensure a stronger now has a frequency rate of 0.25
sustainable returns’. focus on fatality prevention; reduce and Temirtau in Kazakhstan a very
contractor injuries and fatalities; impressive 0.17. This shows us that
I will start with the result and finally, use leading indicators our overall group target of reaching
to implement preventative 1.0 by 2013 can be achieved. So
that is most important measures to avoid similar incidents valuable was the Canada meeting
to us: health and safety. occurring again. that we held a repeat meeting at the
We continue to put great end of the year to discuss how to
emphasis on our Journey These commitments proved drive further improvement in 2012.
valuable as we succeeded in
to Zero program through reducing our LTIFR (lost time injury Although we still have some way to
which we are aiming to frequency rate) for the year by the travel on our journey, I am very
eradicate injuries and 20% target we set ourselves: from pleased with the progress made
fatalities in the workplace. 1.77 to 1.42. Furthermore our throughout the year and must
performance in the fourth quarter commend the employees of
of 2011 – an LTIFR of 1.2 – was ArcelorMittal and our
the best we have reported yet for a subcontractors for their efforts.
single quarter. As is to be expected Safety is at the heart of everything
in an organization of the size and we do and we truly believe that
scale of ArcelorMittal, not all plants having a deeply embedded safety
and sites are yet at the same culture can only have a positive
standard. But we have some
2

2. Overview
effect on ArcelorMittal’s Projects temporarily paused include possible we look to find solutions forIn this volatile economic
Our business
performance as a whole. the Monlevade and Vega do Sul everyone affected. But I am certain environment, it is imperative that
expansion projects in Brazil. that to be a stronger and therefore businesses have a clear strategy,
Turning to the financials, Ebitda Although Brazil has been affected more sustainable business in Europe underpinned by a set of core
for the full year was $10.1 billion, by currency appreciation, inflation we have to adapt to the realities of strengths. ArcelorMittal has many
an improvement of 18.7% and rising wage costs which have the operating environment. strengths but there are five in
year-on-year. Sales were $94.0 decreased competitiveness, it particular that we believe are
billion compared with $78.0 billion remains one of the fastest growing The US, although not without its fundamental to our continued
in 2010 while operating income economies, recently overtaking the challenges, provides a more positive success in responding to evolving
Sustainability
increased by 36% from $3.6 billion UK to become the 6th largest picture. Demand at the beginning market conditions and delivering
to $4.9 billion. Net income economy in the world. It remains an of this year is strong and is sustainable returns.
decreased from $2.9 billion to important market for ArcelorMittal being supported by energy
$2.3 billion, due to $1.3 billion and our intention will be to re-start and automotive demand, which These are our quality core
of non-recurring charges which these projects when the economic continues to improve. In February assets; our ability to make cost
partially offset an otherwise situation and the market permit. there were 15 million light vehicle improvements; our market-leading
improved performance. Net sales on an annualized basis in automotive steel; our world-class
debt at the end of the year As we begin 2012, overall the US, the highest since February mining business; and a stronger
Performance
was $22.5 billion. global sentiment is improving 2008. Indicators of underlying steel balance sheet.
but downside risks remain. Steel demand continue to follow the
Writing to you last year, I said will continue to remain a material economy on an upward trajectory ArcelorMittal’s portfolio of high
that we expected to continue to of choice and we expect worldwide supported by rising consumer and quality core steel assets is well
see a gradual improvement in the demand to grow further. With business confidence. placed in terms of product quality
economy and that 2011 would be our global footprint, ArcelorMittal and production costs. The group is
a stronger year than 2010. The is well positioned to benefit China has recently announced that well diversified and our production
year started as we anticipated, from such continued growth. it expects slower GDP1 growth of facilities outside North America and
Governance
with a continued albeit gradual Nevertheless, in a challenged approximately 7.5% this year. The Europe generated approximately
improvement in the overall environment it is necessary to main risk to the Chinese economy 40% of our steel-based Ebitda in
economy. However the second make some structural changes is a further downturn in private 2011. As a result, despite low
half, and particularly the fourth to strengthen our presence in residential construction as the operating rates, particularly in
quarter, was negatively affected weaker markets. This will also government has signaled its Europe, the group generated
by a deterioration of the economy, serve to enhance the positive unwillingness to relax its clampdown Ebitda of $118 a tonne in 2011.
most specifically linked to the debt impact of our exposure to on the property market until prices
crisis in Europe. Fears that a collapse stronger regional markets. are more affordable. As a result,
Financial statements
of the eurozone could push the China’s end-user demand continues
global economy back into recession Europe remains the biggest to remain relatively weak as
affected sentiment globally. challenge. Although the worst manufacturing exports slow and
A combination of weak sentiment, case scenario seems to have been new construction in the private real
slow underlying demand and falling avoided, demand is still substantially estate market falls, though with
raw material prices triggered a below pre-crisis levels and is set some offset from public housing
period of significant destocking that to remain so for some time. As projects. While industrial output is
resulted in apparent steel demand a result, regretfully in 2011 we expected to show improvements
falling by 5% in the final quarter. took the decision to propose the year-on-year and steel production
permanent closure of the liquid is expected to pick up over the next
In light of the changed phase in Liège. In a move to operate few months, the overall message
environment, ArcelorMittal as efficiently as possible, the liquid is that growth has slowed.
re-considered its capital phase at a number of other facilities Nevertheless we expect Chinese
expenditure program and decided has also been temporarily idled GDP growth to remain at least in
to pause all growth projects in the while we concentrate slab line with government estimates
steel business. Capital expenditure production at a smaller number of and steel demand to expand close
for the year therefore, although our most competitive sites. Such to 5% this year.
increasing to $4.8 billion compared decisions are always difficult to
to $3.3 billion in 2010, was below take, especially due to their social
the initially planned $5-5.5 billion. impact. ArcelorMittal is committed
to strong social dialogue and where
ArcelorMittal Annual Report 2011
1 Gross Domestic Product. 3

3. Message from the
chairman and CEO
continued
We have always focused Further resilience comes from the In 2011, we separated the financial
group’s position as the industry results of our mining business to
on cost competitiveness leader in value-added steel. With clearly show the contribution this
as an important lever of a 40% share of major automotive segment is bringing to the overall
our business. The group steel markets, ArcelorMittal is the business. For ArcelorMittal, our
has a strong track record leading supplier to the automotive mining segment is a significant
industry. This is a contract-based advantage. It ensures security of
of delivering consistent business and compared to more raw materials supply to our steel
cost improvements commodity-orientated businesses, business; it enables us to sell to
through our management the margins are inherently more a growing list of third party
gains program. Since stable and volumes less prone to customers; it allows optimization
short-term stocking/destocking of supply and logistics savings
2008, we have identified cycles. This business performed and it provides the group with
management gains of well in 2011 despite the volatility diversification and an effective
$4 billion with a further in the broader market. We are at hedge against raw material
$0.8 billion to be achieved the forefront of steel research and price changes.
development, with our spend being
before the end of this year. at least twice that of key European Mining is also a major source
During 2011 we also and American competitors. We of growth. Production volumes
announced a new asset work directly with our customers to increased 20% in coal and 10% in
optimization plan, which stay ahead of the curve by offering iron ore in 2011 and this growth
steel technologies that go beyond will continue as we remain on-track
will deliver an additional the material itself. For example, our to produce 100 million tonnes of
$1 billion of Ebitda on an advanced high-strength steels and iron ore by 2015. There are many
annualized basis by the ‘S-in motion’ solutions are helping interesting projects underway, but
end of 2012. automotive customers balance the the biggest highlight from our
demands of improved safety with mining business in 2011 was the
reduced fuel consumption. official launch and first shipment
of our iron ore project in Liberia
The group’s performance in 2011 in September. This project was
was boosted by its world-class a major milestone not only for
mining business. ArcelorMittal ArcelorMittal, but also for the
has always pursued a strategy of country and people of Liberia. In
owning our own mines. However, order to reach this stage, we had to
we have now transformed from rebuild the entire infrastructure that
being the world’s leading steel had been destroyed in the course of
company with a strategy of vertical the country’s prolonged turmoil –
integration, into the world’s leading including 240km of railway line
steel and mining company with a and the port and material handling
portfolio of high-quality growth facilities at Buchanan.
mining assets that sell to both
internal and external customers. The final core strength I would like
This combination gives us a unique to highlight is our balance sheet,
profile among our peers. which is far stronger today than
it was at the onset of the global
financial crisis in the third quarter
of 2008. We have significantly
reduced net debt by $10 billion,
more than doubled the debt
maturity profile to over six
4

4. Overview
years and diversified the sources by the French Institute of Internal Finally, I would like to
Our business
of funding. We have a plan to Assurance; and we have also
further reduce net debt through regained the top spot in the metals
thank all ArcelorMittal
Ebitda growth, ensuring discipline sector in Fortune’s annual list of employees, my colleagues
on capex plans, focusing on most admired companies. Again, on the management
working capital management and these are achievements of which committee, the Group
generating cash through non-core the whole company is proud.
asset divestments. ArcelorMittal is a company that can
Management Board and
be admired on a number of fronts: the board of directors, for
Sustainability
The combination of these five for the quality of the products we their support, hard work
strengths makes ArcelorMittal produce; for our dedication to and contribution to the
a strong and unique company. finding the best solutions for our
As a result, despite the ongoing customers; for our contribution
company’s performance
challenges in the global economy, to the economies in which we in 2011.
we are able to continue to adapt operate; and for our commitment
to the evolving market-place and to produce safe sustainable steel. We are all excited about
provide our customers with the high How we do business is as important
Performance
quality steel and raw materials they as what we do. We publish a
2012 – an Olympic year
require – fulfilling our purpose of separate corporate responsibility – when the ArcelorMittal
generating sustainable returns while report which I would urge you all to Orbit will stand proud as
helping build the infrastructure of read. To mention a few highlights, a symbol of all that our
the modern world. we retained our membership in
the Dow Jones Sustainability and
company is capable of.
The people of our group are the FTSE4Good indices; implemented
foundation from which we build a human rights policy with over
Governance
on our strengths. I have always 147,000 employees trained to
believed that ArcelorMittal has a date; published a responsible Lakshmi N Mittal
world-class team and this was sourcing code; and significantly Chairman and CEO of ArcelorMittal
confirmed in 2011 when for the strengthened our stakeholder
first time we featured in the Aon engagement plan.
Hewitt ranking of top companies
for leaders. This accolade is a
testament to the quality of our
Financial statements
leaders – and indeed all of our
261,000 employees. I recognize
that these are challenging times
for everyone and I would like
to thank all our employees for
their continued hard work
and commitment.
This was not the only recognition
we received during the year. There
are too many to list them all. But a
number stand out. Our internal
assurance team was honored for
excellence in the categories of
Best Internal Audit Contribution
and Best Risk Mapping Approach
ArcelorMittal Annual Report 2011
5

5. Financial highlights
Knowing your core strengths
is important when faced with
economic volatility and rapid change.
At ArcelorMittal, having five core
strengths at the heart of the business
has helped to ensure we have
effectively responded to evolving
market conditions while maintaining
a consistent strategy.
Aditya Mittal
CFO, member of the Group Management Board
Financial highlights
Sales ($1 million)
2011 93,973
2010 78,025
Ebitda2 ($ million)
2011 10,117
2010 8,525
Shipments (million tonnes)
2011 85.8
2010 85.0
Operating income ($ million)
2011 4,898
2010 3,605
Net income3 ($ million)
2011 2,263
2010 2,916
Basic earnings per share ($)
2011 1.46
2010 1.93
6

6. Overview
Our business
2011 steel shipments by location (thousand tonnes)4
Segment Total
Flat Carbon Americas: 22,249
North America 17,084
South America 5,165
Flat Carbon Europe: 27,123
Europe 27,123
Sustainability
Long Carbon Americas and Europe: 23,869
North America 4,584
South America 5,660
Europe 12,547
Other5 1,078
AACIS (Asia, Africa and CIS6): 12,516
Africa 4,624
Performance
Asia, CIS and other 7,892
Number of employees6 at December 31, 2011 according to segments
Segment Total %
Flat Carbon Americas 31,566 12
Governance
Flat Carbon Europe 62,130 24
Long Carbon Americas and Europe 53,558 21
AACIS (Asia, Africa and CIS7) 57,774 22
Distribution Solutions 16,998 7
Mining 36,873 14
Other activities 1,624 —
Total 260,523 100
Financial statements
Allocation of employees6 at December 31, 2011 according to geographic location
Region Total %
EU278 97,619 37
Other European countries9 41,611 16
North America 36,662 14
South America 22,679 9
Asia 41,565 16
Middle East and Africa 20,387 8
Total 260,523 100
Own annual coal production (million tonnes)10 Own annual iron ore production (million tonnes)10
2011 8.3 2011 54.1
ArcelorMittal Annual Report 2011
2010 7.0 2010 48.9
2009 7.1 2009 37.7
1 ‘US$’, ‘$’, ‘dollars’, ‘USD’ or ‘US dollars’ are to United States dollars, the official 7 Commonwealth of Independent States.
currency of the United States. 8 EU27 includes Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia,
2 Ebitda is defined as operating income plus depreciation, impairment expenses Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,
and exceptional items. Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden
3 Excluding non-controlling interests. and the United Kingdom.
4 Shipments originating from a geographical location. 9 Other European countries include Bosnia, Croatia, Macedonia, Norway, Russia, Serbia,
5 Includes tubular products business. Switzerland, Turkey and Ukraine.
6 Full-time equivalent. 10 Own iron ore and coal production excluding strategic long-term contracts.
7

7. Steel and raw
materials:
market analysis
Steel is at the core of In 2011, the global steel market late September, apparent steel
continued to build on the slow demand remained stable over
the infrastructure that recovery in demand witnessed in the second and most of the third
surrounds us, completely, 2010, although destocking in quarter – even though leading
in all aspects of everyday the latter part of 2011 – most economic indicators such as
life. So infrastructure apparent in Europe and China – purchasing managers indices were
limited the increase in apparent already turning down in the second
growth plans – whether steel demand to 6.4% year-on- quarter in Europe, the US and China.
government-backed year. Crude steel production, which
or private – impact peaked in the first quarter of the Autumn shift in sentiment
on demand for steel. year, increased by 6.8% to 1,527 The end of the third quarter
million tonnes. Although this was saw a material shift in sentiment.
a new record, average capacity With the eurozone sovereign crisis
utilization at the world’s steel plants intensifying and stock markets
remains significantly below the in decline, the iron ore price fell
levels recorded in 2006 and 2007, sharply. This led to destocking at
before the global economic crisis service centers, most markedly in
caused world demand to contract Europe where inventories had risen
sharply. This is particularly so to levels above historic norms. In
in Europe. the US, where steel inventories
were some 25% below 2008 peak
Movements in raw material prices levels and auto inventories low by
played a major role in shifts in past standards, destocking was
apparent demand – which more limited – and had started
combines both underlying real to reverse on the back of
demand and changes in inventory strengthening real demand
– over the course of the year. before the end of the year.
The first quarter was marked by
significant restocking by both steel These contrasting demand patterns
service centers and end-users as were reflected in a sharp divergence
a continuing increase in iron ore in steel prices between the US and
prices, rising to a new peak of over Europe from November onwards.
$190 a tonne in February 2011, By the end of the year, the price of
800
raised expectations of a continuing HRC in the US midwest was more
rise in steel prices. than $120 a tonne higher than the
equivalent steel in Germany. This
This process was further boosted was the widest price divergence
mt* by severe floods in Australia, which since the first half of 2008. At the
inhibited coal production and same time, a number of European
China’s estimated installed resulted in a rise of around one third steel producers scaled back on
steel capacity in world coking coal prices to more their production.
* millions of tonnes.
than $300 a tonne. As a result of
these factors in the first quarter, Globally, crude steel capacity
apparent demand rose around utilization fell in December to its
10% year-on-year for the world, lowest level for two years, at
excluding China. 71.7%. That compared with a peak
for the year of 83.3% in February.
Spot steel prices increased during The principal reason for this sharp
Responsible sourcing program
ArcelorMittal incorporates social, ethical the first quarter of 2011 to nearly decline was a sizeable cut in
and environmental considerations into €630 a tonne for spot hot rolled Chinese production in the second
sourcing decisions in order to positively coil (HRC) in Europe and about half of the year.
contribute to our goal of producing Safe
$970 a tonne in the US, from
Sustainable Steel. To this end, we have
launched our ‘responsible sourcing program’. €485 and $617 respectively. Despite the difficult end to the
This sets out how we will work with our After prices peaked in April and year, apparent steel demand in
suppliers and defines our minimum May 2011, all of the early 2011 both Europe and the US built on
requirements from our responsible sourcing price gains were lost over the the recovery that started in 2010.
principles, such as health and safety and
human rights. These responsible sourcing following two quarters. In Europe, apparent demand grew
principles will be given systematic by around 6.1% with particularly
consideration alongside factors such With substantial purchases of steel strong off-take in Germany and
as price and quality. having been brought forward, the Poland. In the US market, there was
usual seasonal peak in demand in growth of 11.5%. The strongest
the northern hemisphere failed to market of all was the CIS, which
materialize in 2011. However, with recorded growth in apparent
iron prices fluctuating within a demand of around 13% on the year.
narrow range from February to
8

8. Overview
Brazil recorded reduced growth. In the first nine months of 2011, 120 million tonnes compared 2012 outlook
Our business
In 2010, the V-shaped economic China experienced consistent with the June peak. For reference,
recovery had sucked in a large growth in apparent demand, a production cut on that scale is
volume of imports to leave the although inventory building peaked the equivalent of removing US and For 2012, we are
country over-stocked in flat in early March and then leveled out. German production from the world forecasting a further
products. With destocking in In June, domestic steel production marketplace. Despite the cutbacks, improvement in steel
progress through the second reached a new all-time high, Chinese steel production still rose
half of 2011, apparent demand equivalent to more than by nearly 9% year-on-year.
demand, compared with
actually fell. 725 million tonnes a year. By 2011. However, that will
Sustainability
the start of the fourth quarter, Special factors in Japan still leave steel use in
China demand fluctuates however, government initiatives and North Africa the developed world
The rise of China as the unequivocal to curb inflation and cool an The disruption caused by the
leading steel producer is a relatively overheated private real estate Japanese earthquake and tsunami
significantly below the
recent phenomenon. At the start of market were having a negative in March 2011 caused a fall in pre-crisis level in 2007.
the last decade, China was a net effect on underlying demand apparent steel demand in Japan Growth prospects
importer of steel. In 2005, its steel for steel. over the spring and summer. should be brightest
imports and exports were balanced. However, with a strong start to
Performance
By 2007, it was the largest net Apparent demand fell severely the year and a recovery in the
in the developing world,
exporter at more than 50 million during the final quarter of the fourth quarter, apparent demand where the recovery has
tonnes, having built its production year as economic factors combined stagnated despite production for been strongest and
capacity at breakneck speed. Today, with sharply falling iron ore prices the year falling 1.8%. In the Middle where the medium and
China is believed to have at least to encourage destocking. The East and North Africa, the events of
800 million tonnes of installed steel response of many steel producers the ‘Arab Spring’ hit economic
long-term outlook is the
capacity and regularly accounts for was dramatic. A number either activity in a number of countries most positive.
nearly half the global output cut production or announced and apparent demand across the
Governance
(the figure for 2011 was 45.5%). production cuts for future months. region finished slightly lower
In some sectors, such as rebar and By November, crude steel on the year-end.
other long products used in the production was running at a level
construction industry, its share equivalent to around 600 million
of world production is even higher. tonnes a year – a reduction of
Financial statements
1 billion people
Crude steel production (million tonnes per month) consume
400
80
70
kg
of steel each year on average
60
50
40
30
Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Dec 11
ArcelorMittal Annual Report 2011
China World excluding China Source: World Steel Association
9

9. Market analysis
continued
In the US, there are growing In China, the pace of growth has By contrast, steel use in the
signs of economic recovery. slowed but underlying demand developing world has recovered
Demand for steel in key industries continues to grow, albeit slowly. strongly from the 2008 lows and in
is rising, underpinning real demand. There are expectations of a pick-up many regions is at, or approaching,
Automotive production continues in steel production by the second a new peak. Apparent demand in
to recover. Energy and equipment quarter as the government Central and South America already
investment remains strong. Rig continues to gradually relax policy set a new record in 2010. In the
counts indicate that activity in the oil to stimulate demand. The property CIS, apparent demand is projected
and gas industry is on a rising curve. sector is slowing as real estate to hit a new record in 2012.
Service sector inventory, in terms developers suffer from falling prices Despite slowing growth rates in
of months’ supply, is marginally and rising inventory of unsold 2011, both China and India are
below historic norms. Construction buildings. However, the government expected to continue their upward
however, is still depressed. is committed to supporting the trajectory in 2012.
social housing program and this
In Europe the outlook is more should support growth in steel Steel use in the developed world
subdued, with still significant demand close to 5% in 2012 after is expected to show low growth
uncertainty surrounding the almost 8% in 2011. to leave underlying demand around
eurozone debt crisis and 20% below pre-crisis levels in
government austerity measures Developing markets lead the way 20121. In the developing world,
weighing on demand. Although For all the recovery in steel use the equivalent figure is 40% or
automotive production in Europe witnessed over the past two years, more above pre-crisis levels, driven
is helped by exports to emerging there has been a marked divergence mainly by China. As a result of this
markets and the US, this is likely between the developed and the divergence, the World Steel
to be more than offset by weak developing world. After allowing for Association estimates that
domestic demand. In many other projected growth in North America developing economies will account
sectors, underlying demand for in 2012, apparent demand will still for 73% of world steel demand in
steel in Europe is at best flat but be more than 10% lower than in 2012, compared with 61%
steel demand is supported as the 2007 before the credit crisis hit. in 2007.
severe destocking that began in European demand will be 20%
the final quarter of 2011 has run down on 2007 levels. Japanese
its course, underpinning hopes for demand for steel is projected to
a slow recovery during the year. be almost 20% lower than
pre-crisis levels.
ArcelorMittal ranks in 2011
Dow Jones Sustainability
World Index
After first gaining entry
Global apparent steel consumption (million tonnes per month)
in 2010, our company is proud
to be included into the prestigious
Dow Jones Sustainability World 60
Index (DJSI) for the second
consecutive year. Scoring highly 55
in all dimensions (economic,
environmental and social), 50
ArcelorMittal was recognized
for our strong sustainability 45
performance.
40
35
30
25
10
15
Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Dec 11
Developing excluding China China Developed Source: local sources (Eurofer, Aisi, Canacero, JISF) and
ArcelorMittal estimates
1 Includes North America, EU27, Japan and Oceania.
10

10. Overview
Long-term growth in steel demand In the developed world, roughly By contrast, the rest of the Over the same period, global
Our business
The shift in demand from north one billion people consume an developing world (excluding China), seaborne iron ore consumption
to south and from the Organization average of 400kg of steel each with a population of more than has nearly doubled, to more
for Economic Co-operation (OECD) year. That figure is unlikely to 4 billion people, is today consuming than 1,000 million tonnes a
to developing countries is set to steel at around one quarter the
increase. Population growth is low year. Again, it is the need to
continue. The rate of steel and many developed countries arerate of the developed world. In feed an ever-increasing number
consumption per head of population becoming increasingly service- fast-developing India, the figure is of Chinese blast furnaces that
has long been a reliable indicator of based economies. The challenge even lower – at around 60kg per has driven much of this growth.
for steelmakers in these marketshead. The scope for growth in steel China’s domestic production of
Sustainability
a country’s level of development.
Steel is a vital element in the building is to add value by providing thedemand in these countries is iron ore has doubled over the
of modern infrastructure, a key advanced steels industrial usersimmense. It has been estimated same period, but is nowhere
industrial material and the starting increasingly demand. that, between now and the end near sufficient to meet demand
point for a host of consumer of the decade, steel demand in and the majority of domestic
products – from household China and the rest of the developing India could more than double. mining is relatively high-cost.
appliances to automotive. Service- world together account for around The ability of seaborne supply
based economies apart, steel use is 85% of the world’s population, and Cost management will be vital of iron ore to meet rising
their share of world Gross Domestic for steelmakers demand in China and the rest
Performance
in many ways a proxy for prosperity.
Product (GDP) is growing. Today, The ability to exploit these of the developing world will be
As developing countries invest China already consumes more opportunities will, for all one of the keys to steel market
in their power and transport steel per head of population – more steelmakers, require strict cost dynamics in the medium-term.
infrastructure, and progressively than 450kg per head – than the controls. Rising iron ore and
industrialize, so their demand for developed nations’ average, though coal prices in recent years, driven
steel increases. Urbanization is much of that consumption reflects largely by ballooning demand
another driver of steel demand: infrastructure and real estate from China, have significantly
construction. altered the balance of steelmaking
Governance
the dawning of the 21st century
marked the first time in history that costs. In 2003, raw material
a majority of the world’s population costs represented 40% of HRC
was living in cities. It is estimated manufacturing costs. The
that a further 500 million people equivalent figure today is
will move to live in cities during around 65%.
the present decade.
Financial statements
Developing countries
will account for
73 %
of global steel demand
by 2012 according to the
World Steel Association
ArcelorMittal Annual Report 2011
Above South Africa
11

11. Our five
core strengths
Supported by our We have quality We are leaders in
consistent strategy, core assets automotive steel
we possess five core
strengths that allow Our core steel plants We have around
us to generate are cost competitive. one-fifth share of the
sustainable returns We have a global global automotive
through the economic presence, spanning market. As the automotive
cycle. Because of those both developed and industry increasingly looks
strengths, we remain developing markets, not for steel providers
committed to our with 40% of steel Ebitda but solution providers,
growth plans. now generated by our technical know-how
Our core projects facilities outside Europe and leading position
are not dependent and North America. in advanced high-strength
on strong economic Our product range steels leaves us well
conditions in order for is broad and we have placed to capitalize on
us to create value for an outstanding our strong customer links.
our shareholders. distribution network.
Our knowledge base
is unrivalled.

12. Overview
We have a world-class We have a stronger We are delivering
Our business
mining business balance sheet cost improvement
Our fast-growing Since December 2008, Since 2008,
mining business spans we have reduced our management
the globe. As most of our net debt by around gains program has
our mines are in close 15%. A further reduction delivered $4 billion
Sustainability
proximity to the group’s is planned for 2012. of cost savings,
steel plants, having our We have also extended with a further $800 million
own production gives the maturity profile targeted for 2012.
us a competitive of our debt from Our asset optimization
advantage. Increasingly, 2.6 years to 6.3 years plan, announced
we are marketing our and diversified the in 2011, is aimed
Performance
iron ore and coal to sources of our funding. at concentrating
external customers. ArcelorMittal remains production at our
With iron ore production committed to maintaining lowest-cost plants to
set to increase from its investment grade rating. optimize productivity.
65 million tonnes to It is targeted to add
100 million tonnes by annual savings
2015 (including strategic of $1 billion by the
Governance
contracts), mining end of 2012.
is a key growth area
for the group.
Financial statements
ArcelorMittal Annual Report 2011
13

13. We have quality
core assets

14. Overview
Our business
Sustainability
Performance
Governance
Performance 2011
Financial statements
Sales ($ million) 93,973
Steel shipments (thousand tonnes) 85,757
Crude steel production (liquid steel in thousand tonnes) 91,891
Our core assets are competitive in terms of cost. This was
amply demonstrated in 2011 when, despite low operating rates,
we generated group Ebitda of $118 a tonne of steel shipments.
Geographic diversification plays its part. We have a balanced portfolio
of assets in both the developed and developing markets and are
the leading steelmaker in the EU, North America, Africa, Latin America
and the CIS. Facilities outside of Europe and North America account
for around 40% of our steel Ebitda. We have important product
diversity that enables us to provide solutions to meet customer
requirements and needs, in all markets. We produce a broad range
of high-quality products, and we operate an outstanding distribution
ArcelorMittal Annual Report 2011
network. Above all, we have an unrivalled knowledge base, which
allows us to benchmark best practice, and a commitment to research
and development (R&D) which keeps us ahead of the curve.
Picture Port-Cartier, Canada
15

15. Our business
ArcelorMittal is the world’s With a total production capacity For many years, the group has
of around 125 million tonnes of pursued a consistent strategy
leading steel and mining crude steel, ArcelorMittal is a focusing on product diversity,
company. With a presence highly efficient steel producer with geographic breadth and vertical
in more than 60 countries, a diversified production process. integration, both upstream and
we operate a balanced It has industrial operations in downstream. The aim of this
20 countries on four continents, three-dimensional strategy
portfolio of cost- producing flat and long steels and is to reduce exposure to risk
competitive steel plants tubular products. In January 2011, and cyclicality.
across both the developed the group’s stainless steel operations
and developing world. were spun off into a separate Our upstream integration, through
company, Aperam. ArcelorMittal our investment in iron ore and coal
We are the leader in all produced approximately 91.9 mining assets, gives us a major
the main sectors – million tonnes of steel in 2011, competitive advantage, provides a
automotive, household compared with 90.6 million tonnes measure of security of supply and is
appliances, packaging in 2010. an important natural hedge against
raw material price volatility.
and construction. We are With our ongoing aim to develop
also the world’s fourth a world-class mining business, our Our downstream integration,
largest producer of iron mining operations have reported through our Distribution Solutions
ore, with a global portfolio as a separate segment since segment, enables us to meet a wide
January 2011. We produced around range of customer needs in virtually
of 16 operating units with 54.1 million tonnes of iron ore and all steel-consuming industries and
mines in operation or 8.3 million tonnes of coal (excluding markets. We sell into a total of
development. In 2011, supplies under strategic long-term approximately 174 countries.
we employed around contracts) in 2011. The exceptional breadth of this
market reach improves our market
261,000 people. intelligence and helps us optimize
working capital through the better
management of our supply
chain inventories.
Above Port-Cartier, Canada

16. Overview
Steel Our global footprint also gives furnace route, approximately In long products, we produce
Our business
As a global steel producer us a unique ability to serve our 22.6 million tonnes through the rebars, sections and beams in all
with a diversified product range, multinational customers by electric arc furnace route and sizes and qualities, and have helped
we service a wide range of providing them with standard around 3.4 million tonnes of build many of the world’s tallest
customers and markets. In 2011, solutions and consistent quality crude steel through the open structures. We are the biggest
approximately 38% of our steel around the globe. We have built hearth furnace. This gives us producer of the very high-strength
was produced in the Americas, strong and deep relationships flexibility in raw material and steels needed for wind turbines,
46% in Europe and 16% in other with our biggest customers and energy usage and our scale helps and the leader in sheet piles. The
frequently work with them in us to optimize plant load factors. world energy industry relies on
Sustainability
countries such as Kazakhstan,
South Africa and Ukraine. committed co-engineering It also increases our ability to ArcelorMittal pipes and tubes.
programs. We have a strong meet changing customer needs.
With our global market reach and presence in the design centers Our Distribution Solutions business
product diversification, we are able of most global automotive In flat products, we are the clear sells both in local markets and
both to reduce risk, and benefit manufacturers and act as a leader in coated steels, from hot through a centralized marketing
from the fast-growing demand strategic partner for many. dip to electro-galvanized and color organization. The service centers
for steel in developing economies coated. We continue to develop finish steels to suit individual
We support this with one of the new grades of light but ultra-high applications, often providing
Performance
– which currently account for
around one-third of our shipments. largest research and development strength steels for the world customized solutions, and help
While demand in the developed budgets in the European steel automotive industry. Our technical the group service its customers
world is weighted towards flat industry, a worldwide network of know-how has given us an 18% more directly.
products and a higher value-added laboratories, and a knowledge world market share in automotive
mix, demand in the developing management program that actively steels. We also produce the biggest
world is higher for long products shares best practice around the plates in the world.
and commodity grades. As these group’s operations.
Governance
economies develop, their need for
higher value products will increase. We have a diversified production
With our experience in developed process, producing approximately
markets, we are well placed to 65.9 million tonnes of our crude
meet that demand. steel through the basic oxygen
Financial statements
Left Belval, Luxembourg
ArcelorMittal Annual Report 2011
17

17. Our business
continued
Mining the group’s own iron ore production Our total metallurgical coal reserves
ArcelorMittal has built up a was sold to external customers. are estimated at 323 million tonnes.
world-class resource base in The group’s coal mines are located
iron and coking coal through In 2011, ArcelorMittal’s own mines in Kazakhstan, Russia and the US.
a combination of acquisitions produced 54.1 million tonnes of
and internal expansion. Our iron ore1; our own mines and A number of growth projects are
geographically diverse portfolio strategic contracts produced under way – most notably in
of mining assets gives us the 65.2 million tonnes of iron ore Canada and Liberia. The group is
opportunity to supply the which was equivalent to 57%2 of on target to expand annual iron ore
developing world as well as our the group’s requirements. A total production (including off-take from
own steel facilities. Since January of 28.0 million tonnes was shipped long-term contracts) to 100 million
2011, the mining business has internally and externally at market tonnes by 2015.
reported as a separate segment. price3. Production of metallurgical
1 Own iron ore production excluding
This has enhanced our ability to coal hit 8.3 million tonnes4; this
strategic long-term contracts.
maximize returns, optimize the was an increase of 20%. 2 Assuming full production at Peña Colorada
allocation of capital and pursue for own use.
our growth plans – which involve Our ore reserve estimation 3 Market price tonnes represent amounts
a material increase in production and reporting processes are now of iron ore and coal from ArcelorMittal
mines that could be sold to third parties
and sales to third parties. standardized and reserve estimates on the open market. Market priced tonnes
will be updated and reported that are not sold to third parties are
All raw materials that can practically annually. Following a full review of transferred from the Mining segment to
be sold outside the group are now our life-of-mine plans, ore reserves the company’s steel producing segments
at the prevailing market price. Shipments of
either marketed to third parties or and mineral resource estimates, our raw materials that do not constitute market
transferred to ArcelorMittal facilities iron ore reserves are now put at price tonnes are transferred internally on
at market price. Production from 3.8 billion tonnes. Our principal iron a cost-plus basis.
captive mines closely linked to one ore mining operations are located 4 Own coal production excluding strategic
long-term contract.
of our steel facilities is transferred in Canada, the US, Mexico, Brazil,
internally on a cost-plus basis. In Algeria, Bosnia and Herzegovina,
2011, approximately 17%1 of Ukraine, Kazakhstan and Liberia.
Mining business portfolio
Key assets and projects
6
4 17
ArcelorMittal is listed on 18 20
5
the stock exchanges of 2
3 13 19
New York (MT), Amsterdam
(MT), Paris (MT), Luxembourg 12
(MT) and on the Spanish stock
exchanges of Barcelona, Bilbao, 9
1
Madrid and Valencia (MTS). 21
22
10 11
7
Non ferrous mine 8
Iron ore mine 15
Coal mine 14 16
Existing mines
New projects
1 Mexico Iron Ore 7 Brazil Iron Ore Serra Azul 100% 16 Coal of Africa 15.9% interest
Las Truchas & Volcan 100%, 8 Brazil Iron Ore Andrade 17 Ukraine Iron Ore 95%
Peña Colorada 50%* expansion 18 Kazakhstan Coal
2 US Iron Ore Minorca 100%, 9 Mauritania Iron Ore 8 mines 100%
Hibbing 62.3%* 10 Liberia Iron Ore 70% 19 Kazakhstan Iron Ore
3 Princeton 7 mines 100% 11 Liberia Iron Ore phase two 4 mines 100%
4 Canada Iron Ore 100% 12 Algeria Iron Ore 2 mines 70% 20 Russian Coal 2 mines 98%
5 Canada Iron Ore expansion 13 Bosnia Iron Ore 51% 21 India Iron Ore
project (Mont-Wright) 14 South Africa Iron Ore* 22 India Steam Coal
6 Canada Iron Ore Baffinland 70% 15 South Africa Manganese 50%
* Includes share of production not controlled by ArcelorMittal.

18. Overview
Our strategic priorities
Our business
1 Health and safety 2 Maintain and improve 3 Grow our mining resource our production facilities and
Health and safety is our cost competitiveness base sustain R&D and product
first priority across all sites, With $4.0 billion of Our mining business currently quality, acquisitions will be
countries and levels of the management gains banked since accounts for around 30% of made only selectively and
company, and is embedded 2008, ArcelorMittal is targeting group profitability. We have where they are strategically
in all our values. We are driven a further $0.8 billion of savings ambitious growth plans important. We are committed
Sustainability
to create a safe and healthy by end of 2012. These will to increase our supply of iron to maintaining our investment
workplace with no accidents come from operational ore to 100 million tonnes grade rating. We are also
and fatalities. Journey to Zero, improvements, sales, general (including strategic contracts, considering some non-core
our company-wide health and and administrative expenses but excluding the potential asset divestments.
safety program to reduce (SG&A) and fixed cost savings. output from Baffinland) by
workplace accidents and 2015, including doubling of 5 Execute organic growth
occupational diseases, In addition, progress has been our market-priced tonnages opportunities in emerging
embodies our health and safety made on the asset optimization over five years. markets
Performance
goals: to become the safest plan launched in September Although we have temporarily
steel and mining company in 2011. By focusing production 4 Preserve balance sheet suspended steel growth
the world. on our lowest-cost facilities strength expenditure due to current
and better aligning our Since the 2008 crisis, we have uncertainties arising from the
footprint to market demand, materially strengthened our eurozone sovereign debt crisis,
we target $1 billion sustainable balance sheet, reducing debt depending on local market
Ebitda run rate improvement and extending the average conditions and projected global
by the end of 2012. maturity of our borrowings. and regional demand trends, we
Governance
While we will continue to will continue to target growth
invest in order to maintain in key developing markets.
Financial statements
2011 highlights
January group strategy, CTO, September November
ArcelorMittal’s stainless research and development, ArcelorMittal commences As a first-time entrant to
and specialty steels business global automotive and as a commercial iron ore the survey, ArcelorMittal
is spun-off into Aperam. member of the investment production from its mining is listed in Aon Hewitt’s
allocation committee. operations in Liberia. This European list of ‘Top
March Christophe Cornier chooses launch is an important Companies for Leaders’
ArcelorMittal and Nunavut to retire from the GMB and milestone in the recovery and ranks among the
Iron Ore Acquisition Inc. assumes the role of advisor of Liberia’s economy, which top seven companies
complete the acquisition to the CEO and GMB; he was devastated by 14 years in Europe.
of Baffinland Iron Mines retires on December 14, 2011 of civil war.
Corporation shares as chairman of ArcelorMittal December
under their joint offer France. The management After first gaining entry ArcelorMittal celebrates
(70% ArcelorMittal and committee is extended from in 2010, ArcelorMittal its 4th annual International
30% Nunavut). 12 to 24 members (more is included into the Volunteer Work Day:
details on page 68). prestigious Dow Jones thousands of employees
May Sustainability World Index volunteer in different
ArcelorMittal plans to June (DJSI) for the second activities to improve the
expand its Mont-Wright ArcelorMittal received the consecutive year. lives of the people in
mining complex and have Best Process Innovation the community.
additional construction October
ArcelorMittal Annual Report 2011
award in American Metal
at Port-Cartier in Canada Market’s (AMM) 2011 Awards ArcelorMittal is given the
(subject to environmental for Steel Excellence for our ‘Life Cycle Assessment
and other regulatory S-in motion concept and Leadership’ award by
approvals). the company’s continuous the World Steel Association
commitment to producing the for the quality of the work
ArcelorMittal’s Group performed by the life cycle
Management Board and most ground-breaking steel
for the automotive sector. analysis team of global
management committee research and development,
grow. Lou Schorsch joins based in Maizières, France.
the GMB with responsibility
for Flat Carbon Americas,
19

19. Health and safety: our
number one priority
Health and safety is At ArcelorMittal, we are committed We sincerely regret the loss of
to becoming the safest steel and 27 colleagues (20 in steel and
ArcelorMittal’s number mining company in the world. Our seven in mining) in work-related
one priority – across group-wide Journey to Zero safety incidents in 2011. While that is a
all sites, in all countries program aims to achieve zero one-third reduction on the number
and at every level. Our fatalities, accidents and of fatalities from the previous year,
occupational illnesses. Launched in every fatality is one too many. We
Journey to Zero safety 2008, it was followed by a global have been working hard to drive
improvement process has agreement on occupational health the systematic application of our
delivered four consecutive and safety with our trade unions, fatality prevention standards at all
years of progress. Further setting a precedent in the industry. sites and at the same time focusing
on improving contractor safety
significant improvement In 2011, our safety performance performance.
is targeted year by year. improved for the fourth
consecutive year. Based on figures These were two of the key
both for our own personnel plus outcomes of a global health and
our contractors, our lost time injury safety summit held in Canada in
frequency rate (LTIFR) fell from January 2011 involving all of our
1.8 per million hours worked in top management. The purpose
2010 to 1.4 now. Significant of the summit was to strengthen
improvement was achieved in our our journey to zero by agreeing
Mining operations, in Flat Carbon measures that would achieve a
Europe, in Long Carbon Americas quick and sustainable reduction in
and Europe, and in Asia, Africa and accidents and replicate the success
CIS. The fourth quarter of the year of our top-performing sites across
– the best performance achieved the rest of the group.
to date – saw a further fall in the
LTIFR to 1.2, with improvement
in all our operations other than
Flat Carbon Americas.
Wellness projects
In 2011, the group launched
fact-finding communities for
HIV/AIDS and certain types of
addictions. The objective was
to gather knowledge on their
prevention to then be used to
further educate on best practices
within the company and therefore
help to protect ArcelorMittal
employees across other sites.
Right Buchanan, Liberia
20

20. Overview
The meeting drew on the examples It also noted that several sites had Joint health and safety committee In addition to health subjects, all
Our business
of four of our larger sites – achieved a significant improvement As part of the global agreement sites organized physical activities.
ArcelorMittal Dofasco in Canada, in their safety record. Major with our unions, forged in 2008, For example, several sites in nine
ArcelorMittal Bremen in Germany, improvements have been obtained we set up a joint health and safety countries participated in the first
ArcelorMittal Bergara in Spain and by site in Temirtau, Monlevade, committee, which meets once a global race.
our Andrade iron ore mines in Brazil Lázaro Cárdenas, Tubarão and quarter. In 2011, meetings were
– to demonstrate how and why Asturias. The business units held in London (planning meeting), In 2011, more than 103,000
they are succeeding in driving down Industeel and tubular products ArcelorMittal Acindar in Argentina, people participated in activities.
or eliminating accidents. Andrade have also made great progress. The event received positive
Sustainability
ArcelorMittal Tubarão in Brazil,
last year celebrated its 19th year ArcelorMittal Vinton and LaPlace reactions and will now be an
without a lost time injury. At ArcelorMittal Tubarão in Brazil, (US sub-committee only), annual fixture with the new name
a program to focus on contractor ArcelorMittal Zenica in Bosnia and ‘health awareness program’.
The critical message that safety resulted in a 79% reduction Herzegovina and ArcelorMittal
ArcelorMittal leaders took from in the LTIFR compared with the Dąbrowa Górnicza in Poland. Health projects
the summit was that the key is to previous year. Some operations have We aim at improving the prevention
foster a culture of shared vigilance in a long-term record of exemplary In August, we issued a report jointly of occupational diseases by various
which every employee is proactive safety performance. Our Al Jubail means in the long-term. In order
Performance
with the European Metalworkers’
about and responsible for his/her project in Saudi Arabia has obtained Federation, the International to benefit both ArcelorMittal
safety of and those around them. more than 10 million hours worked Federation of Metalworkers and employees and the local
As part of that, it was agreed to without any lost time injury, despite the United Steel Workers, community, we are working with
strengthen ‘visible felt leadership’, the presence of four major examining how the company had Project CURE, a US non-profit
with leaders at every level contractors on the site employing worked together with its unions organization providing second-hand
encouraging employee engagement people of 14 different nationalities. across the world to improve safety medical equipment, consumables
in safety performance. We want our performance. The report concluded and material to improve local
employees and contractors not only Within our Mining operation, that the joint committee had helped hospitals and clinics. Three projects
Governance
to comply but be committed to our Journey to Zero has had a to build a positive workplace culture have already been successfully
health and safety standards. significant impact on safety and improved collaboration and conducted in our Liberian hospitals;
performance. The LTIFR has fallen coordination between unions similar projects are ongoing in
One other area of focus is to steadily since 2008, reducing from and management, both locally Romania and Kazakhstan.
make better use of leading 3.4 to 1.2 in 2011. In the US, and globally.
indicators. Managers must ArcelorMittal Princeton has been We are also focusing on educating
know and understand the data on recognized for open-mine safety by Health and Safety Day our employees in the area of
‘near hits’ and unsafe situations the Virginia Department of Mines, As in prior years, the group-wide ‘occupational hygiene’.
Financial statements
so preventative measures can be Minerals and Energy. ‘Health and Safety Day’ was held
taken. We are setting up advanced in all of ArcelorMittal’s sites to A lot of attention has been further
safety monitoring systems to In order to create a culture where coincide with the International paid to increasingly standardizing
better prevent accidents. all employees and contractors are Labor Organization’s World Day operations and medical emergency
valued above all other priorities, for Safety and Health at Work. The improvement projects on a number
Based on the outcome of the the Mining team launched the theme was ‘from priority to value’. of sites, etc., as well as improving
January summit, every business ‘courageous leadership’ set of showers, restrooms, dressing rooms
unit was required to present an values. From top management to Health Week and canteens for several sites.
updated health and safety plan the shop floor, it clearly sets the Our ‘Health Week’, launched as a
by April 28, 2011 – the date of expectation that everyone has pilot project in 2010, was extended REACH legislation
the ArcelorMittal annual Health the authority, responsibility and across the entire group in 2011. We continued to file follow-up
and Safety Day – at the latest. accountability to courageously Focusing on non-occupational data on all substances registered
A follow-up seminar was held speak up when someone is diseases and wellness, the event under the EU REACH legislation
in London in December 2011, thought to be at risk. received positive reactions and will concerning the authorization and
involving the GMB and now be an annual fixture. It has three restriction of chemicals, and
management committee members, The progress made to date confirms objectives: screening, detection of prepared for the registration
and action plans were discussed for that our Journey to Zero program high risk population and awareness of smaller volume products
2012. That meeting agreed that has set us on the right path. In plus education. (< 1000 t), for which the
top priority sites (those that had 2012, the focus of our effort will registration deadline is in 2013.
suffered two or more fatalities in be in further embedding a health During one week, all employees
the last two years) would receive and safety culture in all our sites of ArcelorMittal sites could
closer attention month-by-month and drastically reducing fatalities. receive education on health
and there would be focus on sites We have set ourselves the target matters through health fairs,
having too high a LTIFR (‘red sites’). of achieving an LTIFR of 1.0 or less posters, stands, lectures, tests,
ArcelorMittal Annual Report 2011
by 2013 at the latest. etc., assess their health risk factors
(obesity, hypertension, diabetes,
stress, etc.), and discover how to
improve both their physical and
mental health while lowering risks
of some diseases.
21

21. Our steel and
mining operations
In 2011, all of the group’s Safety There was a marked variation in the
The safety performance improved performance of different segments,
steel segments had to in 2011 in all segments of the reflecting the divergence in regional
deal with challenging business except Flat Carbon and sectoral demand patterns.
conditions. The final Americas and Distribution Solutions. While Flat Carbon Europe bore the
quarter saw a fall in Overall, the group’s lost time injury brunt of European destocking and
frequency rate (LTIFR) improved for a significant price-cost squeeze
apparent steel demand the fourth year running, falling from towards the end of the year, Flat
in a number of markets, 1.8 hours per million worked to 1.4. Carbon Americas benefited from
most notably China. The A further significant improvement strengthening underlying demand
European market was in the safety performance is in North America, offset in part by a
targeted over the next two years. soft market in Brazil. Long Carbon
hard hit as the eurozone Americas and Europe saw a
crisis intensified and the Performance softening in demand and pricing in
effect on steel demand In 2011 Ebitda rose by 18.7% to its major markets in the second half
was amplified by $10.1 billion, with much of the of the year.
improvement driven by our Mining
significant inventory segment. Crude steel production Asia, Africa and CIS suffered a
reduction on the part rose from 90.6 million tonnes to number of production problems in
of customers. 91.9 million tonnes, while steel 2011 which constrained its output,
shipments rose fractionally to but its financial performance
85.8 million tonnes. Ebitda per improved on the back of stronger
tonne finished 18% higher than average selling prices. Our
in 2010, at $118. Distribution Solutions segment
achieved significantly higher selling
prices in 2011 than in 2010,
though inventory reduction in
Europe in the final quarter resulted
in a price-cost squeeze.
Our Mining segment made strong
progress in 2011, lifting Ebitda by
around one-third. Now managed
2011 Ebitda split by segment and reporting separately, it
delivered on its targets to increase
iron ore and coal production by
2012 by 10%. By the fourth
quarter, it was producing iron ore
at an annualized rate of 60 million
Health, Safety and Environment
(HSE) Excellence Awards for tonnes as our greenfield venture
ArcelorMittal Point Lisas in Liberia progressively ramped
After more than one year with up production.
zero lost time injuries and the
inauguration of an improved
health care facility for employees, As part of the move to manage our
ArcelorMittal Point Lisas was Mining segment’s results separately,
presented with the HSE Excellence where production of iron ore or
Award by the American Chamber of coal is marketable, it is now either
Commerce of Trinidad and Tobago
(AmCham). transferred to the group’s internal
customers at market price or sold on
This site is making significant progress
on the collective journey to zero.
world markets. In 2011, just over
half of our iron ore production was
shipped at market price, an increase
of 11.5% year-on-year. Increasingly,
new iron ore and coal production will
be marketed commercially to third
Segment $ million parties. Iron ore and coal production
Flat Carbon Americas 2,109 is targeted to increase by a further
Flat Carbon Europe 1,500 10% in 2012.
Long Carbon Americas and Europe 1,866
AACIS 1,238
Distribution Solutions 271
Mining 3,063
22

22. Overview
Our business
Flat Carbon With 19 plants spanning Safety
The lost time injury frequency rate
“The year 2011 was a relatively
solid one, but we have a long way
Canada, the US, Mexico
Americas and Brazil, Flat Carbon
remained flat in 2011 at around to go to recapture the position we
1.9 hours per million worked. One were in before the crisis,” stresses
Americas (FCA) produces fatality was sustained at the Burns Mr Schorsch.
a complete range of flat Harbor plant. “This was distressing
rolled products. It is the and highly regrettable,” says Lou Investments
Sustainability
Schorsch, GMB member, Two substantial projects are due to
largest plate producer in responsible for Flat Carbon complete in the first half of 2012.
North America, a leader Americas, “but it represents our An upgrade to the hot strip mill at
in tinplate and a major best performance on fatalities since Indiana Harbor will allow the plant
the merger.” Two of the segment’s to meet growing demand for
supplier to the automotive operations, ArcelorMittal Dofasco high-strength steel grades of
market throughout the in Canada and ArcelorMittal Tubarão 20mm thickness or more. At Burns
western hemisphere. Its in Brazil, typically figure among the Harbor, upgrades to the plate mill
market share in the North
Performance
group’s top performing plants for are focused on improving product
safety. The Brazilian operation made quality. Both projects will cost in
American automotive substantial headway on contractor the region of $50 million.
market exceeds 35%. safety in 2011.
Two other projects, at
“A major focus for FCA in terms ArcelorMittal Dofasco in Canada
of safety is to sustain the positive and ArcelorMittal Vega do Sul in
momentum in the US plants,” says Brazil, are on hold pending an
Governance
Mr Schorsch. “The commitment improvement in demand. During
and the focus are there.” the first half we will also be
commencing a major reline of blast
Performance furnace no. 1 in Tubarão – its first
Most areas of Flat Carbon Americas in 28 years, a world record.
made a good recovery in 2011,
with the North American operations Outlook
buoyed by an upturn in the US US automotive production is
Financial statements
automotive, capital goods and forecast to increase to around
Flat Carbon Americas energy sectors. There was a 13.8 million units in 2012. That
continued strong performance from is around one million units more
36
ArcelorMittal Lázaro Cárdenas in than in 2011, but is still some
Mexico, aided by low natural gas 15% below peak production levels.
prices and strong operating With the capital goods and energy
performance. sectors demonstrating a confident
+ % The Brazilian operations were
recovery, Mr Schorsch expects
demand for flat steel in North
Rise in Ebitda as compared negatively impacted by an America to grow by around 5% in
with the year ended inventory overhang from 2010. 2012. Moreover, North American
December 31, 2010 “The combination of a high spot prices began to improve in
Below Belval, Luxembourg currency, inflation, and a domestic mid-November and sustained
market that had suffered a surge those gains into 2012.
in imports the previous year made
conditions challenging,” says Mr Elsewhere, the outlook is more
Schorsch. Slab operations in both mixed. In Mexico, improved
Brazil and Mexico were affected performance is dependent on an
towards the end of the year by expansion in iron ore production,
weakness in the international which is currently underway. Supply
markets occasioned by the euro and demand are now in better
crisis; Brazil exports roughly one balance in Brazil, but the underlying
quarter of its production as slabs. rate of growth has slowed, at least
temporarily. “We continue to look at
ArcelorMittal Annual Report 2011
Overall, crude steel production ways to participate in the expected
rose from 23.1 million tonnes longer-term growth in these
to 24.2 million tonnes, while developing markets, by, for instance,
shipments increased from 21.0 increasing our downstream
million tonnes to 22.2 million footprint,” says Mr Schorsch.
tonnes. With a substantial
improvement in North American
steel prices, Flat Carbon Americas
lifted Ebitda by 36% to $2.1 billion
on sales of $21 billion (2010:
$17.7 billion).
23

23. Our steel and
mining operations
continued
Flat Carbon Europe Flat Carbon Europe Safety
There was further good progress
Flat Carbon Europe recorded an
operating loss in both the third and
is the largest flat steel in our safety performance in 2011. fourth quarters. The figures were
producer in Europe and The lost time injury frequency rate impacted by impairment charges
operates 15 integrated fell from 2.3 hours per million relating to the intended closures
and mini-mill sites in worked to 1.6. It is still a matter of at Liège and costs associated with
huge regret that there were four the implementation of the asset
Belgium, France, fatalities in Flat Carbon Europe, optimization plan, primarily in Spain,
Germany, Poland, for which we implemented very offset by a number of positive items.
Romania and Spain, intensive fatality prevention
with downstream activities standard programs. “At the end of Investments
the day, our frequency rates in Flat Flat Carbon Europe invested
in a further five countries. Carbon Europe are good but they $1 billion as capital expenditure in
It produces hot-rolled need to be improved,” says Aditya 2011 ($792 million in 2010), of
and cold-rolled coil, Mittal, GMB member, responsible which 12% was spent on health,
coated products, tinplate, for Flat Carbon Europe. “Within Flat safety and environment, 30% on
Carbon Europe, there is a list of maintenance and renewals and the
laser-welded blanks, 15 mandatory actions that we want remaining major part was invested
plate and slab. It sells to implemented, and there is a specific on efficiency and growth projects.
a variety of industries, program to implement mandatory The key projects were the relining
including packaging actions across the organization.” of blast furnace no. 2 in Fos-sur-
Mer in the third quarter and the
and general industry, Performance revamping of blast furnace no. 5
thanks to ArcelorMittal’s After a solid first half, market in Galati, Romania in the fourth
high value-added conditions deteriorated with the quarter. Also, the proceeds of the
products and steel onset of the euro crisis in the third carbon dioxide (CO2) sales will be
quarter, leading to severe inventory entirely used to fund the energy
solutions, which have reduction and a decline in average efficiency projects.
contributed to major selling price per tonne in the fourth
improvements to quarter. Against this backdrop, the In 2011, Flat Carbon Europe
crash worthiness and company announced the intended acquired the 2 million tonne coke
closure of the two blast furnaces, plant located in Bottrop, Germany
weight reduction. sinter plant, steel shop and from Ruhrkohle AG, in order to
continuous casters in Liège, Belgium. increase its coke self-sufficiency.
We also temporarily idled some Flat Carbon Europe also acquired
other plants in order to balance controlling stake in ATIC Services
the production to market demand. (logistics and harbor company) in
December 2011.
ArcelorMittal Skopje:
Over the year, crude steel
Macedonia’s ‘Best Employer production fell from 30 million Outlook
in the field of Health and tonnes to 29.5 million tonnes, while “While the economic indicators
Safety 2010’ steel shipments were 0.4 million remain mixed, we expect some
ArcelorMittal Skopje was recognized pick-up in demand from mid-year
as ‘Best Employer in Macedonia
tonnes lower at 27.1 million tonnes.
in the field of Health and Safety’ Ebitda reduced from $2.0 billion to as the destocking initiated in the
by the Macedonian Occupational $1.5 billion on sales of $31.1 billion fourth quarter runs its course,”
Safety and Health Association, (2010: $25.6 billion). says Mr Mittal. Many of Europe’s
under recommendation from automotive manufacturers continue
the Federation of Macedonian
Unions. On April 28, 2011, to enjoy strong export demand.
ArcelorMittal’s Health and Safety The outlook for much of Central
Day was further celebrated as and Eastern Europe and the CIS
ArcelorMittal Skopje was announced is positive.
the winner at a special ceremony
held in Skopje.
Since the start of 2012, European
Right Poland
steel prices have edged higher, but
US prices still remain at $100 a
tonne higher. “There is still not
premium on import parity,” says
Mr Mittal, “and we expect this gap
to narrow further as we move
through the first half of the year.”
We anticipate a limited recovery
of sales volumes for Flat Carbon
Europe in 2012 with steady
improvements thereafter. Prices
and margins over raw materials are
expected to marginally improve
over 2012.
24

24. Overview
Our business
Long Carbon Long Carbon is a global Long Carbon Americas. “These six
fatalities are too many,” says Michel
Investments
Two new projects were started
business operating
Americas and 35 mills in 17 different
Wurth, GMB member, responsible
for Long Carbon. “We are putting
in 2011. A new wire rod mill at
ArcelorMittal Duisburg in Germany
Europe countries. It enjoys strong even more emphasis on the is expected to enter production at
market penetration in implementation of our fatality the end of the first quarter of
prevention standards and working 2012. With a capacity of 450,000
Europe, America and to change the mindset of our tonnes, its higher quality range of
Sustainability
Northern Africa. Long people to build in a sense of long products will take Long Carbon
Carbon is the largest responsibility for others.” into new, value-added markets,
producer of steel sections, including automotive, where Flat
Performance Carbon Europe already has a
offering the widest range After a solid first half, demand for strong presence.
– from small and medium long products weakened from the
to jumbo beams. It is third quarter as market sentiment A project to produce head-
also a leader in wire rod, was affected by the European hardening of rails, for railway
Performance
sovereign debt crisis. The downturn systems with heavy loads, was
rebars, special and was most marked in Europe but US initiated in Veriña, Spain. The new
merchant bar. demand also softened. Appreciation plant has been operational since
of the Brazilian Real had a negative January 2012. Plans to expand wire
Increasingly, Long Carbon is a impact on the local market. rod capacity at Monlevade in Brazil
provider of engineering support Construction markets in 2011 have been put on temporary hold,
services. As the world leader in declined for the fourth year in a as sufficient capacity at other sites
sheet piles, we provide technical row especially in Southern Europe. is available to serve our customers.
Governance
solutions to some of the world’s
most challenging infrastructure Long Carbon shipments rose Outlook
projects. With strong support from from 23.1 million tonnes in 2010 The outlook for the first quarter
R&D, and a downstream presence in to 23.9 million tonnes in 2011. of 2012 is improving with better
wire drawing and distribution, we Production was around one million economic indicators in the US
are continuously adding to the tonnes higher, at 23.6 million and, to a lesser extent, in Europe.
range of higher value services. tonnes. Sales rose from Demand in much of South America
$21.3 billion to $25.2 billion. is firm. Brazil’s preparations for the
Financial statements
Long Carbon Americas Safety However, with profitability per football World Cup in 2014 and the
and Europe There was a marked improvement tonne falling sharply in the second Olympics in 2016 should positively
in overall safety metrics in 2011, half of 2011, Long Carbon recorded impact demand for steel for
with a 30% drop in the LTIFR in the an Ebitda of $1.9 billion compared construction and infrastructure
25.2
Americas and one of 20% in Europe. with $2.1 billion the previous year. from 2013. “Long Carbon is also
However, there were five fatalities set to benefit from a progressive
in Long Carbon Europe and one in For Long Carbon Americas, the shift towards higher value and
$ bn market improved in the second
part of 2011 compared with the
quality products within its sales
mix,” says Mr Wurth.
Sales 2011 first semester; this improvement,
Below Belval, Luxembourg combined with a strong cost- Tubular products
cutting drive, enabled the segment ArcelorMittal is one of the
to be close to the budget target. world’s major producers of tubular
products, serving markets as
The figures were also impacted by diverse as energy, mechanical,
the restructuring costs associated construction and automotive.
with the asset optimization plan. With 23 facilities in 11 countries,
With demand levels more than we produce a complete range of
20% below pre-crisis levels, we products, spanning seamless, spiral
have taken steps to idle higher cost welded and longitudinal welded.
plants. In September, the decision
was taken to temporarily idle the In 2011, our tubular products
Rodange and Schifflange plants business produced just under
in Luxembourg. In January 2012, 1.6 tonnes of steel tubes.
ArcelorMittal Annual Report 2011
the Madrid section mill was put The Al Jubail joint venture in Saudi
on indefinite idle. Arabia to produce seamless tubes is
expected to start hot commissioning
“The changes have improved by September 2012 and to enter
cohesion within the management production in the second quarter
teams and delivered early gains,” of 2013. Planned capacity is
says Mr Wurth. Long Carbon 600,000 tonnes.
Europe was reorganized into four
business units in 2011 in order Safety performance in tubular
to better align the operational products was good – with a LTIFR
structure with the customer base. of 0.8, well below the group’s
The new units are Europe North, average, and zero fatalities.
East, South and North Africa.
25

25. Our steel and
mining operations
continued
AACIS Our Asia, Africa and Safety
Overall safety metrics in AACIS
In Kazakhstan, a new 6-strand
billet continuous caster is being
CIS segment operates showed a further improvement commissioned at Temirtau in the
steelmaking facilities in in 2011, with the lost time injury first quarter of 2012. Built at a cost
Ukraine, Kazakhstan and frequency rate falling from of $40 million, it takes the Kazakh
South Africa. Kryviy Rih 0.9 hours per million worked to plant into long products with the
0.7, around half the average for the ability to produce 1.4 million tonnes
in Ukraine is the world’s group as a whole. While this testifies of semis. A reline of the blast
largest producer of long to the amount of effort invested in furnace no. 2 at Temirtau is due to
products, specializing in improving safety in recent years, be completed in April 2012, at a
rebars and wire rod, there were still seven fatalities, cost of $110 million. A gas cleaning
including four in one plant in South project will also be completed later
with 5.7 million tonnes Africa. “A renewed push, including this year and other safety projects
of production in 2011. additional safety audits, more are under way.
Temirtau in Kazakhstan training and moves to target
produces flat products. sub-contractors in particular, is In South Africa, new sinter plant
under way; management is fully dedusting equipment is being
It is the largest integrated committed to the goal of zero installed at the Vanderbijlpark plant
steelmaker in Kazakhstan fatalities,” says Gonzalo Urquijo, at a cost of around $40 million.
with a production of GMB member, responsible It will be completed by mid-year.
3.6 million tonnes in 2011. for AACIS. A number of other safety and
environmental projects are also
Our four plants in South Performance under way.
Africa produced Following production problems
5.3 million tonnes last in South Africa and Ukraine that Our development strategy in
year. Around 65% of their resulted in the loss of around 2.3 India and China progressed in 2011.
million tonnes of output, crude In both countries, we secured
output is in flat products. steel production finished the year assets to provide the company
marginally lower than before, at with options. Even though the
14.6 million tonnes. That compares investment environment is
with 14.9 million in 2010. Steel challenging in India, especially in land
shipments were down from acquisition, resource allocation for
13.3 million tonnes to 12.5 million industrial development, high interest
tonnes. With average selling prices rate and high inflation environment,
around 21% higher than in 2010, we are still interested and we hope
Ebitda rose from $1.1 billion to $1.2 that this environment will improve
billion on sales of $10.8 billion, up in coming years.
from $9.7 billion the previous year.
Outlook
Community
development Investments In the emerging economies that
in South Africa A $600 million investment program AACIS mainly serves, demand is
The ArcelorMittal is under way across AACIS plants to stable, although customers remain
Foundation supports improve productivity, expand the wary of carrying excess stocks and
‘Collect a Can’ in
South Africa, a product range and address safety there is a lack of forward visibility,
project which aims and environmental issues. says Mr Urquijo. “The biggest
to collect metal challenges we face for 2012 are
cans, separate the In Ukraine, a new ladle furnace and improving our safety record and
tin from steel
and then sell the 6-strand billet continuous caster at dealing with the issue of reliability,”
recuperated materials. Kryviy Rih is scheduled to come on he says. “That means investing in
stream in the final quarter of 2012. training at all levels. We also need to
Given that the
recovery rate of Costing $93 million, it will add step up productivity to maintain our
cans has risen from Above South Africa 1.2 million tonnes of capacity, competitiveness.”
18% to 67% in improve productivity and product
the last 15 years, quality and take Kryviy Rih into
protection of the
environment is one smaller diameter products.
of the project’s
biggest achievements.
It also helps to
educate children,
who are taught
not to drop litter.
‘Collect a Can’
has also had a
positive effect
on community
development,
since it provides
regular employment
for around
37,000 people.
26

26. Overview
Our business
Distribution Centered on Europe, In addition, the business acts as an
international sales network for the
Investments
In May 2011, Distribution
our Distribution Solutions
Solutions segment operates from
group’s steel mills. Solutions acquired the Cognor
distribution network in Poland.
around 400 sites and Safety Comprising 12 warehouses,
has more than 40,000 With a lost time injury frequency Cognor complements our existing
rate of 3.2 hours per million worked, distribution network in the
active customers. It enjoys including two fatalities, Distribution country and extends the sales
Sustainability
a 12.8% share of the Solutions’ safety performance in platform for our six steel mills in
European steel market, 2012 fell a long way short of target. Poland. Greenfield investments
with leading positions in “We benchmark our performance were made to extend distribution
against competitors,” says Gonzalo facilities in Dubai and Turkey.
France, Belgium, the Urquijo, GMB member, responsible
Netherlands, Luxembourg, for Distribution Solutions. “But just Outlook
Spain, Italy and Poland. being better than the industry Mr Urquijo says that, following
Approximately 65% of its norm is not good enough. We are the destocking that has taken
Performance
redoubling our efforts, with now place, the outlook in Europe is
sales are in flat products, more than 20% of all our managers’ stable, although underlying
with most of the time dedicated to safety. We have demand is flat. “We have three
remainder in long. everyone’s full involvement and challenges for 2012,” he says.
Through its network of we are looking for a major “The first is to improve our safety
improvement,” he says. performance; the second is to
steel service centers, review our cost structure; and the
Distribution Solutions is Performance third is to work more closely with
Governance
able to provide highly Distribution Solutions shipped the upstream businesses to better
customized solutions to 18.4 million tonnes of steel in manage our stocks and reduce
2011, up from 18.2 million tonnes cyclical volatility.” Our aim is to
even small customers. in 2010. Amidst destocking on the become the preferred supplier of
part of customers, average selling our customers by accomplishing
prices declined towards the latter the above.
part of the year. With a severe
price-cost squeeze, Ebitda fell to
Financial statements
Distribution Solutions $271 million from $456 million in
2010. Sales were $19.1 billion “Our competitive position
18.4
(2010: $15.7 billion). has been set as one of
our priorities for 2012
with specific actions
mt in terms of developing
our high value-added
Steel shipments in 2011 products. We aim to
285 new apartments improve our customer
In December 2011, ArcelorMittal Kryviy Rih
commissioned new residential housing for
service and to further
its employees, thus fulfilling one of the key develop the cooperation
investor obligations in the social area according
to the sales and purchase agreement (SPA).
between upstream,
The plant invested around 64 million UAH downstream and our
into the construction of two new modern
nine-storied buildings in the 2nd and the
distribution network
3rd Vostochny microdistrict in Gutovsky street. which is very close to
VV Vaideeswaran, the CEO of ArcelorMittal our end customer.”
Kryviy Rih commented, “We are proud today
to finalize one of our main investment Michel Wurth
obligations according to the SPA. Even in the Member of Group Management
midst of the most severe crisis in the industry’s Board, responsible for Long Carbon
history we continued fulfilling our social
ArcelorMittal Annual Report 2011
obligations and building apartments for our
workers. We care about the safety of our
workers and their overall well-being, as well
as the well-being of their families.”
Right Kryvih Riy, Ukraine
27

27. Our steel and
mining operations
continued
Mining With major expansion Since the start of 2011, Mining
has reported as a separate segment
production, excluding ore sourced
from strategic long-term contracts,
and development within the group. This has facilitated increased by 11% to 54.1 million
programs underway improved operating decisions and tonnes. Of that total, just over half
in Canada, the US, the optimal allocation of capital. At (28 million tonnes) was shipped at
Brazil and Liberia, the same time, all production that market price. That was an increase
can practically be sold outside the of 12% year-on-year.
and increasing tonnages group is now either transferred to
of both iron ore and internal customers at market prices Coal production was lifted by 20%
coal being marketed or sold to third parties through the year-on-year to 8.3 million tonnes.
externally, Mining business’s global marketing arm. Of that total, 4.9 million tonnes was
Production from captive mines – shipped at market price, an increase
is an important growth where marketing to third parties of 46%.
engine for the group. is limited by logistics or quality –
continues to be transferred on Mining achieved an Ebitda
a cost-plus basis to the group’s of $3.1 billion on sales of
steel facilities. $6.3 billion. That compared
with $2.3 billion on sales of
The portfolio of mining assets $4.4 billion the previous year.
stretches around the globe, from
Mexico to Russia and from the Safety performance
Arctic Circle to the southern tip of Safety is the number one priority
Africa. With a geographically in the Mining business as in all
diversified portfolio of operating ArcelorMittal operations. “Our
assets and growth projects in iron target is to become the safest
ore, coal and manganese, the metals and mining company in the
mining business is strategically world,” says Mr Kukielski. Mining
positioned to supply the emerging has made great strides in the past
markets as well as its internal four years, reducing the lost time
customers globally. injury frequency rate (LTIFR) from
4.0 per million hours worked in
Mining responsibly Peter Kukielski, GMB member, 2007 to 1.2 in 2011. The latest
In 2011, ArcelorMittal began iron chief executive of Mining, says figure represents an improvement
ore mining in Liberia. Prior to this,
ArcelorMittal launched the most
the “vision within Mining is to of 23.5% on the 2010 outturn.
comprehensive environmental study create value through operational
ever undertaken in Liberia of the excellence and profitable growth, There have been some dramatic
Nimba mountain range. This is home while caring for the environment improvements in safety
to Liberia’s biggest iron ore deposits,
and it is also one of West Africa’s few
and our people, and maintaining performance. ArcelorMittal
remaining wet-zone forests. safety first – always.” Princeton in the US has gone from
being the worst performer among
ArcelorMittal partnered with a
number of international conservation
In 2011, Mining achieved all the group’s mines in 2008 to
groups to explore how the company demanding production targets. recording a LTIFR of zero in 2011.
can help reverse the history of With the first shipments of ore from
environmental damage in Nimba. As the new mine in Liberia, iron ore
a result, ArcelorMittal found several
new species including a fish, a frog
and a dragonfly and confirmed that
the Nimba mountains are home to
animals that live nowhere else but Above Buchanan, Liberia
in this part of Liberia. A biodiversity Right Kazakhstan
conservation program has now been
launched as the protection of the
rainforest is crucial to ArcelorMittal’s
plan for Liberia, and the future of
rural livelihoods.
28

28. Overview
Our business
Regrettably, there were still personnel and periodic validation 900 million tonnes, on which to Coal production is planned to rise to
seven fatalities in the coal mining by external specialists. base future expansion. at least 11 million tonnes over the
operations in 2011. Efforts same period. In early 2011, Mining
are being redoubled to drive home At the end of 2011, proven and For more details on reserves and completed the underground mine
the message that safety is a shared probable reserves of iron ore resources, please see page 202. expansion program at Princeton
responsibility. “In developing our amounted to 3.8 billion tonnes Coal, increasing production capacity
culture in Mining we emphasize of run-of-mine material. These Growth plans by 0.7 million tonnes a year.
what we call ‘courageous reserves constitute the basis of Capital expenditure in Mining more
Sustainability
leadership’ in order to equip our 90% of the group’s long-term than doubled to around $1.3 billion Key projects underway include:
leaders and our people with a set production forecasts. In addition, in 2011 and is set to remain at a
of values,” says Mr Kukielski. “It we have measured and indicated high level as existing mines are Liberia: The first shipments from
empowers people to speak up resources of iron ore estimated expanded and new ones developed. our greenfield iron ore project in
when something is not right. It is at approximately 8.2 billion tonnes, The focus is firmly on growing Liberia commenced in September
about creating a culture in which with further inferred resources of marketable volumes. In 2012, 2011. This was the culmination of
people know they are valued, 4.1 billion tonnes. These resource production of both iron ore and four years’ development work that
where they bring a positive attitude estimates provide considerable coking coal is planned to increase included the rehabilitation of
Performance
to work and accept the scope for growth and underpin by around 10%. 240km of railway and upgrades
responsibilities of leadership – the long-term sustainability of to the port and material handling
in safety as in everything else,” our operations. However, this increase is just one facilities at Buchanan. The mine
he says. The mining business is stop on the growth journey. The was brought into production on
targeting a LTIFR of 1.0 or Proven and probable reserves of near-term target is to expand iron schedule and within budget. In
less by 2013. metallurgical coal were estimated ore production to 100 million 2012, production will be lifted
at 323 million tonnes of run-of- tonnes by 2015. That includes ore to around 4 million tonnes.
Management team mine coal with an average yield sourced from strategic contracts,
Governance
With a number of key hires in of 52%. The life-of-mine plans forecast to be around 16 million
2011, Mining now has a leadership of our coal operations are entirely tonnes by that date. Within Mining’s
team with huge industry based on these reserves and own production, marketable
experience. Built up over two years, extend for 20 years or more. We tonnages are expected to double
the team has a proven track record also have a substantial further coal on 2010 levels.
of project execution, operational resource, estimated at more than
performance and commercial
marketing. “Getting the right
Financial statements
people in the right place at the
right time is one of the biggest “While our expansion plans are ambitious, we have
challenges,” says Mr Kukielski. “We rigorous controls in place to ensure that we are
have been able to cherry-pick,
taking people from leading roles in
not simply increasing production tonnage. Our
the industry.” business plan envisages strong Ebitda growth
even on flat iron ore price assumptions. In other
Reserve and resource update words, we are well positioned to continue to deliver
In 2011, Mining carried out its
commitment to complete a full
superior value whatever the economic backdrop.”
review of all of its life-of-mine Peter Kukielski
plans, ore reserves and resource Member of the Group Management Board, chief executive of Mining
estimates. Reserve estimation
and reporting methods were
standardized to ensure best
practice and alignment with
Securities & Exchange Commission
requirements. We also standardized
our mineral resource estimates to
meet the Canadian Ni 43-101
requirements. Ore reserve
estimates will now be updated
and reported annually.
ArcelorMittal Annual Report 2011
All ore reserve and mineral resource
estimates are now subject to a
rigorous corporate governance
process with internal technical
reports, sign-off by qualified
29

29. Our steel and
mining operations
continued
Mining Engineering for the second phase
of the project is now under way. If
The Mont-Wright operations have
more than 2.0 billion tonnes of iron
Our commercial strategy will focus
on building a customer base in both
approved, this would lift production ore reserves – sufficient to support the Atlantic and Pacific growth
of iron ore from 4 million tonnes a 28-year mine life at the markets to develop stable,
a year of direct shipment ore to expanded production level. This is long-term demand.
15 million tonnes a year of before taking account of substantial
concentrate from 2015. It includes additional resources, which could Other projects
the construction of a concentrator form the basis of a further doubling While Baffinland is a key project
and a further upgrade to the port of production over time. Scoping in the drive to sustain future
facilities. Planned expenditure on studies are underway to confirm production growth beyond 2015,
phase two amounts to $1.8 billion. the potential for further mine Mining has an internal pipeline of
expansion in the Mont-Wright, Fire both brownfield and greenfield
ArcelorMittal Mines Canada: Lake and Mont Reed areas. We are projects currently under
Expansion of the Mont-Wright also actively exploring in areas of consideration. With our significant
mine and concentrator capacity will inferred mineral resources. resource base, these projects offer
increase annual production of iron the potential over the medium-
ore concentrate from 16 million Andrade Mines, Brazil: Investment term for an expansion in our own
tonnes to 24 million tonnes by in the Andrade Mines in Brazil will iron ore production up to and
2013. The project cost is lift production or iron ore from beyond 100 million tonnes,
approximately $1.2 billion. This 1.5 million tonnes a year to before including strategic contracts.
expansion capitalizes on existing 3.5 million tonnes. The expansion,
rail and port facilities, the quality of which is set to cost $75 million, will Global marketing
our product and our experienced be completed in 2012. With a highly experienced
workforce. Its location offers easy marketing team now in place,
access to US and European markets Baffinland, Canada: In March Mining is building a strong
– an important consideration given 2011, ArcelorMittal, in partnership commercial presence in global
that the additional production will with Nunavut Iron Ore Acquisition markets. Our goal is to be a
be sold on world markets. Inc. (now WW Mines), acquired preferred supplier in an otherwise
a 70% controlling interest in highly concentrated iron ore and
Baffinland Iron Mines Corporation. coal industry with a broad customer
Baffinland owns the Mary River base and a portfolio of long-term
project, a high-grade iron ore contracts, thereby allowing us
reserve in Northern Canada. to produce evenly through the
The acquisition consolidated steel cycle.
ArcelorMittal’s position as a
major iron ore producer. Unlike many producers, we bring
an understanding of our customers’
The existing feasibility study total feed requirements and we
has been updated ahead of a have the ability to provide bundled
board-level construction decision. deliveries of steelmaking raw
In addition, a draft environmental materials to their mills. We are also
impact statement has been able to leverage the group’s strong
submitted to regulators, instituting shipping capability. In 2011,
the process of environmental marketing trials were undertaken
review. Constructive talks are in a number of markets. The focus
proceeding with local stakeholders was on the growth markets of Asia,
to finalize the Inuit impact benefits South America and the Middle East.
agreement.
The Baffinland product will be a
high-quality, direct shipping mix of
premium lump ore and premium
fine ore sinter feed with only
crushing and screening required.
Above Baffinland, Canada
30

30. Overview
Our business
Corporate responsibility pollution. We have also formed a Canada and the Liberian operations Safety is always a
The Mining team actively works to joint environmental management will materially reduce our global cost
minimize the environmental impact committee with the elders of the position in iron ore. By 2015, iron
challenge for the company
of its operations and engages with local Inuit communities to gain ore cash costs are expected to be and especially for mining.
local stakeholders to foster knowledge of their traditions as around 15% lower than today on To improve safety in the
sustainable communities. hunters and fishermen. The a constant currency basis. group’s mines in
committee will scrutinize and Ongoing capital investment in the
While preparing to develop our iron approve all design aspects of coal mines will similarly improve
Kazakhstan, ArcelorMittal
Sustainability
ore mine in Liberia, we undertook the project. the cost position in coal. has invested $365 million
an extensive biodiversity study and in an extensive
are now working alongside local Competitive cost base “While our expansion plans are modernization program
people to improve management of The Mining business strives to ambitious, we have rigorous
the local environment. We have achieve its planned organic growth controls in place to ensure that we
since 2007. On Baffin
built schools, a training center and at an attractive cost per tonne. are not simply increasing production Island in the Canadian
hospitals – all of which we fund and Compared with industry peers, tonnage,” says Mr Kukielski. “Our Arctic, site exploration
operate. And we have sunk and the estimated capital costs for business plan envisages strong requires people to work
Performance
equipped wells to bring fresh water the major planned projects are Ebitda growth even on conservative
to isolated villages. competitive, offering the prospect iron ore price assumptions. In other
on frozen ice. “To minimize
of compelling returns even on flat words, we are well positioned to risks, our team trained in a
At our Baffinland development, assumptions of long-term iron ore continue to deliver superior value new operating procedure
we have now completed in-depth, and coal prices. whatever the economic backdrop.” for measuring the
base-line environmental studies.
Ongoing monitoring continues. As production of both iron ore
thickness of ice and
Given its exceptional quality, the and coking coal increases, Mining’s evaluating conditions on
Governance
extracted ore will require no operating unit costs are expected floating ice covers,”
processing and will leave behind to fall. The investments now being said Dave McCann,
no tailings deposits or processing made in ArcelorMittal Mines
responsible for mining
project sites, Baffin Island.
Financial statements
Baffinland commitment
Baffinland Iron Mines Corporation
is committed throughout all phases
of the Mary River project to plan
and conduct operations in an
environmentally responsible manner,
one that is beneficial to all.
Left Port-Cartier, Canada
ArcelorMittal Annual Report 2011
31

31. We are leaders
in automotive steel
Picture Belval, Luxembourg
Our global share of the automotive steel market is around 18%. In all,
the auto industry consumes around 15% of all the steel we produce. Long-term
contracts add to the stability of our business. We have built close relationships
with our customers, often working with them at the vehicle design stage.
These relationships are founded on our continuing investment in R&D and our ability
to provide highly engineered solutions that help make vehicles lighter, safer and
more fuel-efficient. We are the leader in the fast-growing market for advanced
high-strength steels. Together with a range of press-hardened steels, these steels
form the basis of our revolutionary S-in motion solution, which opens the way
to big CO2 savings over the life of the average vehicle.
Ebitda 2011
10,117
$ m

32. 33
Business overview Our business Sustainability Performance Governance Financial statements ArcelorMittal Annual Report 2011

33. Corporate
responsibility
At ArcelorMittal, corporate Our CR strategy focuses on The following pages provide an
four areas: outline of the group’s CR strategy
responsibility (CR) is about and performance. A separate
embedding good practice • Transparent governance – our
CR report, published alongside this
business strategy, operations
in every aspect of the and everyday practices are all
annual report, provides additional
group’s activities. By underpinned by transparent
detail and analysis. It can be
accessed at www.arcelormittal.
aiming at all times to governance.
com/corporateresponsibility
act in a responsible and • Investing in our people – we want
transparent manner, to make each and every person Transparent governance
and to maintain good working on our behalf feel valued.
CR has the committed support
relations with our • Making steel more sustainable of both the board of directors,
stakeholders, we are – we are using our expertise which formally oversees CR
in steel and mining to develop
better able to manage cleaner processes and greener
across the company, and the Group
social and environmental Management Board. The board of
technologies. directors receives a consolidated
risk and deliver long-term • Enriching our communities – we report on key CR topics for each
shareholder value. play an important role in all the of its meetings (it met eight times
communities where we operate. in 2011), enabling it to monitor
performance and make
In 2011, we made good progress assessments in key areas including
in all four areas of the CR strategy. human resources, health and safety,
Health and safety remained our social and the environment. With
number one priority. In 2011, the diversity of their backgrounds,
a report jointly issued by the the directors bring an exceptional
company, the European breadth of experience to their
Metalworkers’ Federation, the decision-making.
International Federation of
Metalworkers and the United The Group Management Board
Steelworkers was published. reviews the CR program on a
Below Chicago, US This report concluded that the quarterly basis. It also receives
collaboration between the company in-depth subject matter reports
and its unions had helped build a several times a year to permit
positive workplace culture and more detailed analysis. With
improved coordination between operational responsibilities that
unions and management both engage them daily in health and
locally and globally. safety, social, environmental
and ethical issues, all Group
Respecting human rights is Management Board members
important for our business. In are able to bring key insights
2011, we commenced a training to the CR management process.
program to raise awareness of our
The group CR team is tasked
human rights policy, both internally
and throughout our supply chain. with promoting the CR strategy
across the group and also to
In September 2011, ArcelorMittal provide regular reports to other
was reconfirmed as a member of board committees. In 2011, each
the Dow Jones Sustainability World meeting of the audit committee
Index following its annual review.
The company is also a member
of the FTSE4Good Index.
34

34. Business overview
received a statistical update
Our business
147,000 employees, raising their Regrettably, there were still 27
on the implementation of our awareness of what their human work-related fatalities among
human rights policy as part of rights are and how they are employees and contractors in 2011 “Clear reporting is
their responsibility for monitoring expected to behave. ArcelorMittal’s (20 in steel and 7 in mining). We one of the best ways
the compliance program. The risk human rights policy is now available mount a thorough investigation of engaging with
management committee also in the 19 most commonly spoken following each such accident.
assesses risks from a social, languages within the group. The findings are discussed at the our global and local
environmental or ethical A guidance manual was published Group Management Board level and stakeholders. In
perspective. addition to the group
Sustainability
to assist employees in dealing with action plans are drawn up to ensure
any issues they encounter in their the lessons are systematically corporate responsibility
The implementation of the CR day-to-day operations and a shared throughout the group.
strategy is advised by the CR governance framework was set up report, 10 local
coordination group which reviews to ensure that we can effectively Journey to Zero focuses on corporate responsibility
standards, assesses risks and deal with any violations of the preventative action and improved reports were published
monitors the implementation of policy. In 2012, we will continue standards through the sharing of in 2011 – all aligned
CR strategy. It is comprised of impact assessments in priority best practice and group-wide
senior managers from a variety of to the group-wide
Performance
countries and our training program benchmarking. A number of
other corporate areas and meets to support human rights in line initiatives designed to reinforce corporate responsibility
regularly. In 2011, there were with the United Nations Guiding the program were introduced in priorities.”
eleven meetings, including a Principles on Business and 2011 following a company-internal
site visit to South Africa. Human Rights. Health and Safety Summit held Gonzalo Urquijo
in Canada in January 2011. A Member of the
All business units are in the process We also continue to make progress follow-up meeting was held in Group Management Board,
of implementing CR governance on our code for responsible sourcing London in December 2011 for responsible for
structures at a local level. These corporate responsibility
Governance
launched in December 2010. The the Group Management Board
are designed to promote effective code has started to be distributed and management committee
CR management, reinforce to all our main suppliers together members. Significant improvements
cross-functional collaboration and with a publicly available guidance were recorded at several priority
foster good community relations. document on its implementation. sites. A major effort was made
Clearly defined CR responsibility to reinforce safety procedures
forms part of the job description Investing in our people among contractors, whose safety
of all CEOs, plant managers and record lags behind that of our
designated CR coordinators. All Health and safety
Financial statements
direct employees.
are accountable at their respective The safety of our employees is our
levels. This activity is supported by top priority. Our company-wide The joint global health and safety
regular training events, courses and safety program, Journey to Zero, committee, set up with the group’s
information sharing meetings on aims to make a continuous trade unions, meets once a quarter.
key subjects that are held locally, improvement in our safety record As in prior years, our group-wide
regionally or hosted at the and eliminate fatalities. In 2011, our annual Health and Safety Day was
headquarters. employee and contractor lost time held on a date chosen to coincide
injury frequency rate (LTIFR) fell with the International Labor
The group compliance program from 1.8 per million hours worked Organization’s World Day for Safety
plays an important role in in 2010 to 1.4. This was in line and Health at Work on April 28.
establishing a responsible and with our target for a further 20%
ethical business culture. Compliance reduction in the injury rate and We view the health of our
training was expanded in 2011 to represents the fourth consecutive employees both as an important
encompass a group-wide training year of improvement. A target of contributor to safety standards
program on the human rights policy LTIFR of 1.0 has been set for the and as a key element in our
launched in 2010. Using both online end of 2013. success as a company. In 2011,
and face-to-face training, we our ‘Health Week’, focusing on
delivered training to a total of non-occupational diseases and
wellness, was extended to every
site in the group.
ArcelorMittal personnel and contractors – lost time injury frequency rate (LTIFR)
ArcelorMittal Annual Report 2011
2010 2011
Total mines 1.5 1.2
Flat Carbon Americas 1.8 1.9
Flat Carbon Europe 2.3 1.6
Long Carbon Americas and Europe 2.0 1.4
Asia, Africa and CIS 0.9 0.7
Distribution Solutions 2.7 3.2
Total steel 1.8 1.5
Total (steel and mines) 1.8 1.4
35

35. Corporate
responsibility
continued
Human resources responsibility program. It will raise We are the largest recycler of scrap
Against the backdrop of a awareness about our CR strategy steel in the world. Each year, we
challenging marketplace, the and encourage employees to take recover and recycle more than
human resources team has engaged action at work and at home. 30 million tonnes of scrap, saving
actively with trade unions and 40 million tonnes of CO2. We have
employees to maintain constructive Training and development a dedicated team to evaluate our
employee relations and minimize ArcelorMittal University is at processes and products using a life
the impact of the group’s the heart of the group’s training cycle assessment methodology.
restructuring. ArcelorMittal and development activities,
recognizes the right to collective offering programs for leadership We are a key member of the
bargaining and approximately 85% development and technical training EU Ultra-Low CO2 Steelmaking
of our employees are currently through online and classroom initiative (ULCOS). The program is
covered by such agreements. delivery. In 2011, more than now in its second phase, which will
23,000 employees participated in include a demonstration project
We believe in open and continuous a total of around 358,000 hours involving the recycling of blast
dialogue with our employees. Our of courses and training linked to furnace gases and carbon capture
employee relations policy, together the University. and storage at our operations
with our guidelines on best practices in Florange, France, and
and training ensure that our The University is constantly Eisenhüttenstadt, Germany.
processes are implemented across evolving. In 2011, it introduced
the business in a consistent manner. programs to address business Within our own operations, we
We have established employee challenges in emerging economies continue our energy-saving efforts.
relations diagnostics at key sites to align with the company’s growth Our industry-leading R&D expertise
where groups of management and strategy in these markets. More has played a key role in delivering
employee representatives together training was delivered locally, energy optimization models that
monitor the implementation of through an expanding network of are now being deployed across the
relevant policies. local and regional training centers. group. Our US operations have been
In 2011, three new campuses awarded an Energy Star by the U.S.
We attach great importance to were inaugurated in South Africa, Department of Energy for four
the development of our people. Czech Republic and Spain. Tailored consecutive years.
Our global executive development induction programs have been
program (GEDP) is the foundation developed for both employees We monitor air, water, energy and
of our performance and people and contractors at the group’s waste data at all of our facilities.
management processes and a new greenfield operations. By the end of 2011, 98% of all
key instrument for identifying main industrial sites had achieved
and promoting talent. It is Making steel more ISO 14001 certification, the
supported by a succession international standard for
management process designed
sustainable environmental management.
to ensure talent development Addressing climate change
Leadership award
and to encourage individual Steel production has an To improve air quality, we have
In November 2011, ArcelorMittal advancement and motivation. environmental impact that we finalized a new dedusting system
was ranked seventh in the are committed to reduce. In 2011, at our sinter plant in Ostrava,
‘Top Companies for Leaders’ ranking Two other programs play greenhouse gas emissions from our Czech Republic, which will reduce
in Europe. A first-time entrant to
the survey, the company was
an important role in talent steel operations remained broadly emissions of dust by 70%. Sulfur
competing with 60 other big identification: the group engineers in line with the previous year. dioxide will also be reduced.
European businesses and judged program to create a pool of A similar investment was made at
on the strength of its leadership internationally mobile engineers We continue to invest in the sinter plant of Vanderbijlpark
practices and culture, its leadership
development, and its performance
and the career accelerator program environmental solutions. In in South Africa which is now being
and reputation. designed to develop key talents in a 2011, the ArcelorMittal investment commissioned.
structured manner. These programs, allocation committee approved
together with other workforce environmental projects with a total We are also targeting improved
planning programs, are informed by value of $383 million and energy water management at plants with
our diversity and inclusion policy. efficiency projects for a total of high consumption levels. A case
$164 million. We have set study using best practice analysis
Looking towards 2012, we are ourselves a target of reducing our of the water flows was successfully
launching an employee engagement CO2 emissions by 170kg a tonne developed at our Bremen plant
campaign across the group. Our aim of steel produced by 2020. That in Germany in 2011, leading to
is to motivate employees to play is equivalent to an 8% reduction a significant reduction in potable
their part in implementing in normalized emissions from our and industrial water usage.
ArcelorMittal’s corporate 2007 base-line.
36

36. Business overview
In Brazil, ArcelorMittal BioFlorestas Enriching our communities The Foundation’s main areas of Enhancing the lives
Our business
is working on technology to activity are education, health and
recycle the waste gas emitted Wherever we operate, we community development. It also
of older people
during charcoal carbonization contribute to the development has a standing commitment to
and use its heat content in of strong and sustainable provide immediate help to
In 2005 and as a
electricity generation. communities. We conduct local communities affected by proposal from
assessments to define the key emergencies. ArcelorMittal volunteers,
The need to sustain biodiversity is an areas for engagement that help the ArcelorMittal
important part of our environmental us assign our resources and identify In addition to local projects, the
Sustainability
strategy. Before establishing our iron new issues. We aim to engage Foundation takes on global projects
Foundation started
ore mining operation in the Nimba with our external stakeholders in through partnerships with Habitat a project to enhance
region of Liberia, we conducted a transparent manner and work in for Humanity, International the quality of life for older
a long-term ecological study partnership with local organizations Baccalaureate, Junior Achievement people. ArcelorMittal
which highlighted how the local as defined by our external and Bone Marrow Donation.
environment might be impacted stakeholder engagement procedure,
volunteers teach crafts
in the future. This prompted us previously called ‘community The Foundation also works to older people waiting
to work with international engagement standard’. to encourage ArcelorMittal for treatment at a health
Performance
conservation groups and with local employees to invest their time center in Cariacica, Brazil.
stakeholders to develop shared Four of the 12 policy aspects and expertise in community
plans for the management of the covered by the ArcelorMittal projects. Its initiatives include
In 2010, the project won
forest and make conservation a human rights policy relate to our the international volunteer day, in an ArcelorMittal
priority. In Baffin Island, Canada, communities – ranging from topics which around 7,500 employees Excellence Award and
where our new mining operation is such as access to land and water to participate each year, and the it is now a reference in
planned, an extensive environmental resettlement. As part of our work solidarity holidays program which enhancing the quality of
impact assessment was carried out to implement the policy across the gives employees the opportunity
Governance
to determine the necessary group, local grievance mechanisms to spend part of their annual leave life for the community’s
conditions for future activities to are being strengthened. volunteering in a Foundation older people. In 2011
be managed with respect for the project overseas. In 2011, the this life-changing work
physical environment. Our program of interactive Foundation carried out 10
training workshops designed to solidarity holidays projects in
continued.
We place great emphasis on helping build local community engagement Argentina, Brazil, Bosnia and
our customers achieve greater capabilities was continued in 2011 Herzegovina, Haiti, Liberia,
sustainability profiles for their in Bosnia and Herzegovina, Czech Macedonia, Mexico, Senegal,
Financial statements
products. In 2011, our R&D team Republic, Kazakhstan, Poland South Africa and Ukraine.
continued to pioneer new high- and Ukraine. “What makes the
strength steels that permit major The ArcelorMittal Foundation Foundation’s initiatives
weight reductions, and therefore ArcelorMittal Foundation also provides ‘minigrants’ of up
Created in 2007, the ArcelorMittal
even more unique is
fuel savings, in automotives. We to $5,000 to non-governmental
are developing advanced steel for Foundation develops projects to organizations with whom our that they do not only
electrical engines and rail transport benefit the communities where the employees are actively engaged benefit communities,
which will help reduce CO2 company’s operations are located. as volunteers. In 2011, 73 but they also bring
emissions. In the construction It operates in 30 countries and non-governmental organizations in
supports around 580 projects each 17 countries received such a grant.
value to our employees
industry, the strength-to-weight
ratio of our Histar™ steel delivers year. These are aimed at maximizing and help to foster a
CO2 savings of up to 30% in the the potential of each community sense of belonging.”
construction of new buildings. while respecting its specific needs
and empowering local people. The Lakshmi N Mittal
Chairman and CEO
Together with our market-leading Foundation also promotes
role in areas such as steel sheets entrepreneurship by helping people
for flood barriers and a growing develop their own talents. In 2011,
presence in supplying the bases, investment in the Foundation’s
towers and many of the moving projects amounted to $35 million.
parts of wind turbines, this
demonstrates both the role steel
will play in a sustainable future and
ArcelorMittal’s ability to anticipate
it. See research and development,
ArcelorMittal Annual Report 2011
page 38.
37

37. Research and
development
Research and With 1,330 researchers and 11 We are already working on the next
research centers, ArcelorMittal’s generation of MartINsite, M1900.
development (R&D) 2011 expense for R&D was Increasingly, we are trialing new
plays a key role in approximately $306 million. concepts and materials in the
the sustainability and Just over half of that spending is search for ever greater strength
long-term success on product and applications to weight ratios.
development, either addressing or
of the group. anticipating customer requirements. Packaging
Continuous technological Around 40% is dedicated to R&D has collaborated with
development helps process improvements within the ArcelorMittal Flat Carbon Europe,
us maintain and grow group. A quarter of all spending is the leading provider of steel for
on longer-term projects. packaging in Europe, to develop
market share, sustain new, low-thickness grades of steel
competitiveness and There is a strong strategic that combine high-strength and
lead the way in energy orientation and customer alignment excellent formability, reducing costs
and resource efficiency. to all we do. Representatives of the to the customer. Examples include
business units, not scientists, chair the Maleis™ system for easy-open
The influence of R&D the multiple committees that ends and a can-opening tab that
permeates all parts define R&D priorities and allocate combines double cold-reduced
of the business – fostering resources. A number of our material yield and tensile strengths
innovative thinking scientists are located not in our with the formability of standard
laboratories but at customer rolled cold-reduced material. As a
at all levels. locations. For some key customers, result of this program, steels with
we have research staff on-site, a thickness of 0.1mm have been
engaged in design work and trialed and simulations for 0.09mm
materials selection. are already underway.
Product R&D focuses on four Research also focuses on increasing
main areas: the formability of steel to make
appealingly shaped cans, and
Automotive ensuring that products meet
We continue to set new standards increasingly stringent environmental
for steel solutions that make and safety regulations.
vehicles lighter, safer and more
environmentally friendly. With the Construction
deployment of our ground-breaking Much of our work focuses on
S-in motion program, involving 60 thermal efficiency, acoustics,
different press-hardened and fire resistance and earthquake
advanced high-strength steels protection. Our new metallic coated
solutions for weight saving, steel, Magnelis®, offers superior
ArcelorMittal won the Best Process resistance to corrosion in harsh
S-in motion is Innovation award in American Metal environments and has diverse
Market’s 2011 awards for steel applications within the building
something no other excellence. S-in motion allows a and civil engineering industries.
steel company has weight reduction of 19% in the
done before: a pioneering structural components of a vehicle In 2011, we launched a new range
weight-saving solution (body-in-white and chassis). of sustainable organic coated steels,
Progress does not stop there: new Nspired by Nature. The range offers
that produces a big products now in development will high corrosion resistance and is
advance in vehicle allow a further 7% reduction. 100% compliant with both current
energy-efficiency. and pending European regulations
In 2011, a new steel for bumper on the restriction of chemical
We have now applications, MartINsite M1700, substances. Other new solutions,
shared it with nearly was released. With a strength of such as our Flontec anti-graffiti
all of the major automotive 1,700 megapascals (MPa), it coating, were showcased at the
provides the weight savings of Batimat construction exhibition
manufacturers in the aluminum with much greater in November 2011.
developed countries strength and at lower-cost.
and it has been
a major success.
Lou Schorsch
Member of the
Group Management Board, responsible
for research and development
38

38. Business overview
In structural long products, we Process R&D Optimizing raw material usage is a Internally, we have developed
Our business
have developed new applications, Process R&D has a dual mission – key element in the drive for cost energy optimization models that
products and technical solutions improving plant performance in efficiency. The volatility seen in the have been deployed at three of our
to facilitate the use of steel in terms of cost-efficiency and coal and iron ore markets makes it plants and will now be deployed
construction. At the same time, product quality, and developing important to be able to respond to globally. We are working on
we continue to work towards innovative manufacturing variations in availability and quality breakthrough technologies with
reducing CO2 consumption processes. while minimizing our environmental the potential to significantly reduce
in housing. impact. We are exploring the use of the amount of energy required to
high pulverized coal injection (PCI) produce steel.
Sustainability
We are constantly developing
In heavy long products, process models that leverage ratios in our blast furnaces and
ArcelorMittal Belval & Differdange, our scale and inventory of best researching ways of using a high Fostering innovation throughout
together with the R&D team, have practices. A new system for the proportion of non-coking coals to the group
continued the development of the real-time remote monitoring of produce coke. At ArcelorMittal, innovation
largest rolled sections in the world blast furnace conditions and means more than new products
that are used for multistory performance (RMDS), piloted in Environmental impact or processes. It involves getting
buildings such as New York’s 2010, is now being installed across Reducing environmental impact people to think about new and
Freedom Tower. We also continued is a consistent theme in what we better ways of doing things. R&D
Performance
the group. It is expected to be in 18
the development of new products blast furnaces by the end of 2012. do. We are increasingly applying holds workshops across the group
and applications for sheet piles to Tracking more than 500 data points the high-strength steels developed to help release innovative thinking.
fight flooding, as used in the gating and 30 key performance indicators, for our automotive customers in For example, R&D conducted a
system to protect Venice. RMDS will provide early feedback areas such as pipe and metal creativity session for the group
AMLoCor™ is ArcelorMittal’s new on potential problems – so allowing processing. Our research into finance leaders in the framework
‘low corrosion’ steel grade allowing major cost savings – while helping steels for electrical engineering of the finance academy program.
design engineers and port to optimize performance and targets improved efficiency and The use of the tools and methods
authorities to build more durable reduced core loss in electrical to leverage creative ideas
Governance
accelerate the standardization of
quay walls, breakwaters and jetties. best practices. The process R&D motors used in the appliances, demonstrated how these can be
The key advantage of AMLoCor™ team is now working on a similar household goods and increasingly gainfully deployed in finance as well.
is a significant reduction of the system for our electric arc furnace automotive markets.
corrosion rates in seawater, (EAF) operations.
specifically in low water and
permanent immersion zones.
AMLoCor™ also leads to
considerable savings in steel weight
Financial statements
compared to an unprotected
standard structural steel, which is a
major advantage against alternative
solutions that use concrete. This
new steel grade will allow engineers
to design safe and even more
cost-effective structures that will ArcelorMittal awarded Steely
last for over 50 years without any Award for its LCA activity
additional surface protection. The World Steel Association
(WSA) announced its 2010 Steelies
Awards at its annual meeting in Paris,
Energy market October 13, 2011. ArcelorMittal was
Our innovative product program awarded the ‘Life Cycle Assessment
for the energy market, dealing with Leadership’ Steely.
renewable energy sources, fossil It recognizes the quality of work
fuels or nuclear applications, is performed by the life cycle analysis (LCA)
rapidly growing. We wish to help team of global R&D, based in Maizières,
the global society move forward France, but also the way in which
ArcelorMittal uses LCA to develop new
in a direction where energy does steel solutions, new steel grades and
not become a scarcity. new production processes. As a first
recognition of the work done in this
In 2011, we developed a range field, Jean-Sébastien Thomas, head
of the Maizières team, was appointed
of high-performance and high- chairman of the World Steel LCA Expert
durability pipes, plates and electrical Group mid-2011.
steels for the energy market. The
ArcelorMittal Annual Report 2011
Left Maizières, France
focus of R&D is on development
of heavy gauge, high-strength,
corrosion resistance and
improved welding.
39

39. We have a
world-class
mining business
Picture Baffinland, Canada
We have a fast-growing and geographically spread portfolio of mining assets,
focused on iron ore and coking coal. Managed and reported as a separate segment
since the start of 2011, our mining business represents both a source of strength
and future growth to ArcelorMittal. While Mining supplies many of the group’s
steel facilities, new production is increasingly being marketed externally. Our spread
of assets leaves us well placed to supply the emerging markets. In the near-term,
our growth plans center on three projects in Canada, Liberia and Brazil which
are expected to lift our production of iron ore from 65 million tonnes in 2011
to 100 million tonnes by 2015 (including strategic contracts). Beyond that date,
our Baffinland project in the Canadian Arctic promises to contribute a new
source of high-grade iron ore to sustain Mining’s continued growth.

40. Overview
Our business
Iron ore and coal production million tonnes
Sustainability
Iron ore 65.21
1
Coal 8.9
1 Aggregate total of own mines and strategic long-term contracts.
Performance
Governance
Financial statements
ArcelorMittal Annual Report 2011
41

41. Key performance
indicators (KPIs)
The key performance indicators that
ArcelorMittal’s management uses to
analyze operations are provided below.
Health and safety
(lost time injury frequency rate for steel and mining)
2011 1.4
2010 1.8
2009 1.9
2008 2.3
2007 3.3
ArcelorMittal has a clear and targets and monitors results Health and safety performance, Americas and Europe, and Asia,
strong health and safety policy from every business unit and site. based on own personnel figures Africa and CIS operations, only
aimed at reducing the severity We have also implemented an and contractors’ lost time injury partially offset by deterioration in
and frequency of accidents on a injury tracking and reporting frequency rate, improved to the Flat Carbon Americas and the
continuing basis across the entire database to track all information 1.4 for the year 2011 from 1.8 Distribution Solutions segments.
organization. The corporate health on injuries, lost man-days and for the year 2010 with significant
and safety department defines other significant events. improvement in Mining operations,
and follows-up performance Flat Carbon Europe, Long Carbon
Sales1
($ million)
2011 93,973
2010 78,025
2009 61,021
2008 116,942
2007 96,293
The majority of steel sales from either at the business unit or manufactured in different This 20% increase was due to
ArcelorMittal are destined for at the production unit level. For production units around the world. higher average steel selling prices
domestic markets; these sales some specific markets, such as In 2011, sales approximated (+18%) and marginally higher
are usually approached as a automotive, there is a global $94.0 billion, compared with steel shipments (+1%).
decentralized activity, managed approach offering similar products 2010 sales of $78.0 billion.
Steel shipments2
(thousand tonnes)
2011 85,757
2010 84,952
2009 69,624
2008 99,733
2007 107,789
ArcelorMittal had steel shipments 85.0 million tonnes in 2010. Steel shipments increased in the
of 85.8 million tonnes for 2011, Group shipments remain some Flat Carbon Americas and Long
representing an increase of 1% 20% below pre-crisis levels. Carbon segments and declined
from steel shipments of in the Flat Carbon Europe and
AACIS segments.
42

42. Overview
Our business
Sustainability
Crude steel production
(liquid steel in thousand tonnes)
2011 91,891
2010 90,582
2009 71,620
Performance
2008 101,129
2007 114,190
In 2011, around 65.9 million electric arc furnace route and greater flexibility in raw material crude steel was produced in
tonnes of crude steel were approximately 3.4 million tonnes and energy use, and increased the Americas, 46% in Europe
produced through the basic of crude steel through the open ability to meet varying customer and 16% in other countries
oxygen furnace route, around hearth furnace route. This requirements in the markets we such as Kazakhstan, South
Governance
22.6 million tonnes through the provides ArcelorMittal with serve. In 2011, about 38% of Africa and Ukraine.
Ebitda
Financial statements
($ million)
2011 10,117
2010 8,525
2009 5,600
2008 23,653
Ebitda is defined as operating Ebitda a tonne shipped increased
income plus depreciation, to $118 a tonne in 2011,
impairment expenses and compared with $100 a tonne in
exceptional items. ArcelorMittal 2010, $80 a tonne in 2009 and
generated Ebitda of $10.1 billion $242 a tonne in 2008.
in 2011, 19% higher than 2010.
1 Including $4,767 million, $6,405 million, $3,169 million, $4,873 million and $5,875 2 Shipment volumes of steel products for the operations of the company include certain
million of sales to related parties for the years ended December 31, 2007, 2008, 2009, inter-segment shipments.
ArcelorMittal Annual Report 2011
2010 and 2011 respectively.
43

43. Key performance
indicators (KPIs)
continued
Average steel selling prices1
($ a tonne)
Flat Carbon Americas
2011 892
2010 781
2009 698
2008 920
2007 701
Flat Carbon Europe
2011 982
2010 821
2009 799
2008 1,018
2007 831
Long Carbon Americas and Europe
2011 937
2010 802
2009 743
2008 1,055
2007 774
AACIS
2011 736
2010 608
2009 506
2008 804
2007 585
Distribution Solutions
2011 993
2010 832
2009 767
2008 1,155
2007 961
Over the last years, the impact of model for iron ore shifting from has impacted buying behavior Average steel selling price for the
changes in raw material spot prices yearly benchmark pricing to of our customers leading to group in 2011 increased 18%
on the steel pricing has been quarterly and lately even spot more pronounced stocking and compared with 2010, following the
significantly increased.This is due pricing. As customers anticipate destocking cycles, which again increase in key raw material prices.
to a sharp increase in the absolute changes in raw material costs affect steel prices.
value of raw material prices, but feeding into steel prices, this
also due to a changing pricing raw material price volatility
44

44. Overview
Our business
Sustainability
Iron ore production
(million tonnes)
2011 54.1 11.1 65.2 5
2010 48.9 19.6 68.55
Performance
2009 37.7 15.0 52.7 5
Total own mines2 Total strategic long-term contracts3,4
ArcelorMittal sources significant supplies of ArcelorMittal. We are In 2012, the company is ArcelorMittal had own
portions of its iron ore needs from also expanding capacity of existing targeting an increase of iron ore production of
its own mines in Kazakhstan, mines in Canada, Liberia and approximately 10% in its 54.1 million tonnes
Ukraine, Bosnia and Herzegovina, Brazil. Several of our steel plants iron ore production, in 2011, an increase
Governance
Algeria, Canada, the United States, also have in place off-take compared with 2011. of 11%, compared with
Mexico and Brazil. During 2011, arrangements with mineral 48.9 million tonnes in 2010.
the company’s iron ore mining suppliers located near its
complex in Liberia became production facilities, some of
operational and contributed to the which are considered strategic
long-term contracts.
Financial statements
Coal production
(million tonnes)
2011 8.3 0.6 8.9
2010 7.0 0.4 7.4
2009 7.1 0.5 7.6
Total own mines Total strategic long-term contracts6,7
As with iron ore, ArcelorMittal States. Our mines in Kazakhstan Temirtau, while our mines in Russia ArcelorMittal had own coking
sources a percentage of its coking supply substantially all the and the US supply other steel plants coal production of 8.3 million
coal from its own coal mines in requirements for steelmaking within the group. tonnes in 2011, an increase of
Kazakhstan, Russia and the United operations at ArcelorMittal 19%, compared with 7.0 million
tonnes in 2010.
1 Average steel selling prices are calculated as steel sales divided by steel shipments. 4 Includes purchases made under the July 2010 interim agreement with Kumba,
Steel sales exclude sales of coke, coal, direct reduced iron, pig iron, hot metal, slag, South Africa.
by-products, energy, etc. 5 Total of all finished production of fines, concentrate, pellets and lumps (includes
2 North America: includes ArcelorMittal’s share of production from Hibbing (US, 62.30%) ArcelorMittal’s shares of production of less than wholly-owned mines and strategic
and Peña Colorada (Mexico, 50%). long-term contracts).
ArcelorMittal Annual Report 2011
3 North America: consists of long-term supply contracts with Cliffs Natural Resources Inc. 6 North America: strategic agreement – prices on a cost-plus basis.
(‘Cliffs’). On April 8, 2011, ArcelorMittal announced that it had reached a negotiated 7 Africa: long-term lease – prices on a cost-plus basis.
settlement with Cliffs regarding all pending contract disputes related to the procurement
of iron ore pellets for certain facilities in the US. As part of the settlement, Cliffs and
ArcelorMittal agreed to specific pricing levels for 2009 and 2010 pellet sales and related
volumes and, beginning in 2011, agreed to replace the previous pricing mechanism in one
of the parties’ two iron ore supply agreements with a world market-based pricing
mechanism. Accordingly, beginning first quarter of 2011, this excludes the long-term
supply contract for which the market-based pricing mechanism was reached.
45

45. Financial review
ArcelorMittal reports Sales, steel shipments, increase from sales of $40.4 billion
average steel selling prices in the second half of 2010,
its operations in six and mining production primarily driven by higher average
segments: Flat Carbon The table opposite provides a steel selling prices as well as higher
Americas, Flat Carbon summary of ArcelorMittal’s sales, sales of mining products.
Europe, Long Carbon steel shipments, average steel
selling prices and mining production ArcelorMittal had steel shipments
Americas and Europe, by reportable segment for the year of 85.8 million tonnes for the
Asia, Africa and CIS ended December 31, 2011, year ended December 31, 2011,
(AACIS), Distribution compared with the year ended representing an increase of
Solutions and Mining. December 31, 2010. 1% from steel shipments of
85.0 million tonnes for the year
The information in this ArcelorMittal had sales of $94.0 ended December 31, 2010.
section relates to the year billion for the year ended Average steel selling price for the
ended December 31, 2011, December 31, 2011, representing year ended December 31, 2011
compared with the year an increase of 20% from sales of increased 18% compared with the
$78.0 billion for the year ended year ended December 31, 2010
ended December 31, 2010. December 31, 2010. In the first following the increase in key raw
half of 2011, sales of $47.3 billion material prices. Average steel
represented a 26% increase from selling price in the first half of 2011
sales of $37.6 billion in the first was up 23% from the same period
half of 2010, due to a strong rise in in 2010, while average steel selling
steel prices and a more modest rise price in the second half of the year
in steel shipments, resulting from was up 13% from the same period
the global economic recovery and in 2010 (notwithstanding a 6%
improved steel demand compared decrease in average steel selling
with the same period a year earlier. price in the fourth quarter of 2011
In the second half of 2011, sales of compared with the third quarter
$46.7 billion represented a 15% of 2011).
Flat Carbon Americas
Sales to external customers performance
by segment year ended December 31, 2011
+19%
Increase in sales for Flat
Carbon Americas in 2011,
as compared with the year
ended December 31, 2010
ArcelorMittal Temirtau
During 2011, ArcelorMittal Termirtau
renovated the aspiration system at
blast furnace no. 4 and installed two
new electric filters, which replaced
the old multi-cyclone dust collectors.
The project eliminated fugitive
emissions at the cast house, with
dust concentration in emissions falling
to under 50 mg/m3 (from around
140 mg/m3). The project budget
was $10.3 million.
A closed-circuit cooling system was
Segment $ billion
also introduced for coke gas. Prior Flat Carbon Americas 21.0
to this project, contaminated water Flat Carbon Europe 31.1
was cooled in open cooling towers,
which resulted in permanent air
Long Carbon 25.2
emission of toxic substances. Now AACIS 10.8
the water is cooled in a closed-circuit Distribution Solutions 19.1
heat-exchange unit, which eliminates
all emissions of about 300 tonnes of
Mining 6.3
contaminants a year. The budget for
this project was $3.4 million.
46

46. Overview
ArcelorMittal had own iron ore Total steel shipments were 22.2 Flat Carbon Europe 12.6 million tonnes, down 4%
Our business
production of 54.1 million tonnes million tonnes for the year ended Sales in the Flat Carbon Europe from the same period in 2010.
for the year ended December 31, December 31, 2011, an increase segment were $31.1 billion for the The decrease in the second half
2011, an increase of 11% of 6% from steel shipments for the year ended December 31, 2011, of 2011 resulted in particular
compared with 48.9 million tonnes year ended December 31, 2010. representing an increase of 22% from market weakening and
for the year ended December 31, Shipments were 11.1 million tonnes compared with $25.6 billion for the strong destocking activity in
2010. ArcelorMittal had own in the first half of 2011, up 4% year ended December 31, 2010. the fourth quarter.
coking coal production of 8.3 from the same period in 2010, The increase was primarily due to
million tonnes for the year ended while shipments in the second a 20% increase in average steel Average steel selling price
Sustainability
December 31, 2011, an increase half of the year were 11.2 million selling price, while steel shipments increased 20% for the year ended
of 20% compared with 7.0 million tonnes, up 7% from the same decreased by 1%. Sales in the first December 31, 2011 compared
tonnes for the year ended period in 2010. Shipments half of 2011 were $16.4 billion, up with the year ended December 31,
December 31, 2010. nonetheless declined in the 31% from the same period in 2010. Average steel selling price
fourth quarter of 2011 compared 2010, and in the second half of the in the first half of 2011 was up
Flat Carbon Americas with the third quarter of 2011. year sales were $14.7 billion, up 27% from the same period in
Sales in the Flat Carbon Americas 12% from the same period in 2010. 2010, while average steel selling
segment were $21.0 billion for the Average steel selling price price in the second half of the
Performance
year ended December 31, 2011, increased 14% for the year ended Total steel shipments reached year was up 12% from the same
representing an increase of 19% December 31, 2011 compared 27.1 million tonnes for the year period in 2010 (notwithstanding
compared with $17.7 billion for the with the year ended December 31, ended December 31, 2011, a a 7% decrease in average selling
year ended December 31, 2010. 2010. Average steel selling price in decrease of 1% from steel price in the fourth quarter of 2011
Sales increased primarily due to a the first half of 2011 was up 17% shipments for the year ended compared with the third quarter
6% increase in steel shipments and from the same period in 2010, December 31, 2010. Shipments of 2011).
a 14% increase in average steel while average steel selling price in were 14.6 million tonnes in the first
selling price. Sales in the first half of the second half of the year was up half of 2011, up 1% from the same
Governance
2011 were $10.5 billion, up 21% 12% from the same period in 2010 period in 2010, while shipments in
from the same period in 2010, and (notwithstanding a 5% decrease in the second half of the year were
in the second half of the year sales average selling price in the fourth
were also $10.5 billion, up 17% quarter of 2011 compared with
from the same period in 2010. the third quarter of 2011).
Financial statements
Sales for the year Steel shipments for the year
ended December 311 ended December 311
Changes in Steel
2010 2011 2010 2011 sales shipments Average steel
Segment ($ million) ($ million) (thousand tonnes) (thousand tonnes) (%) (%) selling price (%)
Flat Carbon Americas 17,684 21,035 21,028 22,249 19 6 14
Flat Carbon Europe 25,550 31,062 27,510 27,123 22 (1) 20
Long Carbon Americas and Europe 21,315 25,165 23,148 23,869 18 3 17
AACIS 9,706 10,779 13,266 12,516 11 (6) 21
Distribution Solutions2 15,744 19,055 18,173 18,360 21 1 19
Mining 4,380 6,268 N/A N/A 43 N/A N/A
Total 78,025 93,973 84,952 85,757 20 1 18
Year ended Year ended
Mining shipments (million tonnes)3 December 31, 2011 December 31, 2010
Total iron ore shipments4 51.6 46.7
Iron ore shipped externally and internally at market price5 28.0 25.2
Iron ore shipped internally at cost-plus5 23.6 21.6
Total coal shipments6 8.2 6.6
Coal shipped externally and internally at market price5 4.9 3.4
Coal shipped internally at cost-plus5 3.3 3.2
1 Amounts are prior to inter-segment eliminations except for total. 4 Total of all finished products of fines, concentrate, pellets and lumps and includes shipped
2 Distribution Solutions shipments are eliminated in consolidation as they primarily externally and internally at market price as well as shipped internally at cost-plus basis.
represent shipments originating from other ArcelorMittal operating subsidiaries. 5 Market-priced tonnes represent amounts of iron ore and coal from ArcelorMittal mines
ArcelorMittal Annual Report 2011
3 There are three categories of sales: (1) ‘External sales’: mined product sold to third that could practically be sold to third parties. Market-priced tonnes that are not sold to
parties at market price; (2) ‘Market-priced tonnes’: internal sales of mined product to third parties are transferred from the Mining segment to the company’s steel producing
ArcelorMittal facilities at prevailing market prices; (3) ‘Cost-plus tonnes’: internal sales segments at the prevailing market price. Shipments of raw materials that do not
of mined product to ArcelorMittal facilities on a cost-plus basis. The determinant of constitute market-priced tonnes are transferred internally on a cost-plus basis.
whether internal sales are transferred at market price or cost-plus is whether or not 6 Total of all finished products of coal and includes those shipped externally and internally
the raw material could practically be sold to third parties (i.e. there is a potential market at market price as well as those shipped internally on a cost-plus basis.
for the product and logistics exist to access that market).
47

47. Financial review
continued
Long Carbon Americas same period in 2010, while AACIS
and Europe shipments in the second half of In the AACIS segment, sales were
In the Long Carbon Americas and the year were 11.8 million tonnes, $10.8 billion for the year ended
Europe segment, sales were up 3% from same period in 2010. December 31, 2011, representing
$25.2 billion for the year ended Steel shipments nonetheless an increase of 11% from sales of
December 31, 2011, representing decreased in the fourth quarter $9.7 billion for the year ended
an increase of 18% from sales of of 2011 compared with the third December 31, 2010. The increase
$21.3 billion for the year ended quarter, particularly due to the was primarily due to a 21%
December 31, 2010. The increase summer holiday period in Brazil increase in average selling price.
was primarily due to a 17% and lower demand in North Sales in the first half of 2011 were
increase in average steel selling America and Europe. $5.4 billion, up 17% from the same
price along with a 3% increase in period in 2010, while sales in the
steel shipments. Sales in the first Average steel selling price second half of the year were
half of 2011 were $12.6 billion, increased 17% for the year ended $5.4 billion, up 6% from the same
up 23% from the same period in December 31, 2011 compared period in 2010.
2010, while sales in the second with the year ended December 31,
half of the year were $12.6 billion, 2010. Average steel selling price in Total steel shipments reached
up 14% from the same period the first half of 2011 was up 22% 12.5 million tonnes for the year
in 2010. from the same period in 2010, ended December 31, 2011, a
while average steel selling price in decrease of 6% from steel
Total steel shipments reached the second half of the year was up shipments for the year ended
23.9 million tonnes for the year 12% from the same period in 2010 December 31, 2010. Shipments
ended December 31, 2011, (notwithstanding a 6% decrease in were 6.4 million tonnes in the first
an increase of 3% from steel average selling price in the fourth half of 2011, down 3% from the
shipments for the year ended quarter of 2011 compared with same period in 2010, while
December 31, 2010. Shipments the third quarter of 2011). shipments in the second half of the
were 12.0 million tonnes in the year were 6.1 million tonnes, down
first half of 2011, up 3% from the 9% from the same period in 2010,
due primarily to operational issues
at ArcelorMittal South Africa and
ArcelorMittal Kryviy Rih.
Road and rail safety in Liberia
ArcelorMittal’s iron ore mining
operations began in September 2011
in Nimba County, North East Liberia.
One of the most important
preparations for this activity has
been to upgrade local transport
infrastructure that had been severely
neglected during 14 years of civil war
and upheaval. Rehabilitation of the
240km railway and service road that
connects the mine in Yekepa to the
port of Buchanan was done in close
collaboration with the local
communities along these routes.
Many local residents and especially
children have never seen the railway
in operation, so a key element of the
activity has been a high-profile road
and rail safety campaign.
Right Vitória, Brazil
48

48. Overview
Our business
Average steel selling price increased average steel selling price in the ArcelorMittal’s operating income
21% for the year ended December second half of the year was up for the year ended December 31, Long Carbon
31, 2011 compared with the year 14% from the same period in 2010 2011 was $4.9 billion, compared performance
ended December 31, 2010. (notwithstanding a 6% decrease in with an operating income of $3.6
+18%
Average steel selling price in the average selling price in the fourth billion for the year ended December
first half of 2011 was up 24% from quarter of 2011 compared with 31, 2010. The rise in operating
the same period in 2010, while the third quarter of 2011). income in 2011 was primarily
average steel selling price in the driven by a profitability improvement
Mining
Sustainability
second half of the year was up in Flat Carbon Americas and the
19% from the same period in 2010 In the Mining segment, sales Mining segment.
(notwithstanding an 8% decrease were $6.3 billion for the year ended
in average selling price in the fourth December 31, 2011, representing Operating income was higher in Increase in sales for Long Carbon
quarter of 2011 compared with the an increase of 43% from sales of the first half of 2011 than in the Americas and Europe in 2011,
third quarter of 2011). $4.4 billion for the year ended second half of the year, due mainly compared with the year ended
December 31, 2010. The increase to a price-cost squeeze in the December 31, 2010
Distribution Solutions was primarily due to higher selling second half resulting from an
Performance
In the Distribution Solutions prices of iron ore and coal in line overhang of high-cost raw material
segment, sales were $19.1 billion inventories from the first half of the
with increase in international prices,
for the year ended December 31, as well as higher shipments from year and a time lag in passing along
2011, representing an increase of own mines for both iron ore and increases in costs to customers.
21% from sales of $15.7 billion coal. Sales in the first half of 2011Cost of sales consists primarily
for the year ended December 31, were $2.8 billion, up 41% from the of purchases of raw materials
2010. The increase was primarily same period in 2010, while sales necessary for steelmaking (iron
due to a 19% increase in average in the second half of the year were ore, coke and coking coal, scrap
Governance
steel selling price. Sales in the first $3.5 billion, up 45% from the same and alloys), electricity, repair and
half of 2011 were $9.3 billion, up period in 2010. maintenance costs, as well as direct
24% from the same period in labor costs. Cost of sales for the
2010, while sales in the second half Total iron ore shipments were year ended December 31, 2011
of the year were $9.8 billion, up 51.6 million tonnes for the year was $85.5 billion compared with
18% from the same period in 2010. ended December 31, 2011, $71.1 billion for the year ended
representing an increase of 10% December 31, 2010. The increase
Total steel shipments reached 18.4 from 46.7 million tonnes for the was primarily due to higher prices
Financial statements
million tonnes for the year ended year ended December 31, 2010. of raw materials in 2011, in
December 31, 2011, an increase Marketable iron ore shipments particular iron ore and coal. Selling,
of 1% from steel shipments for the were 28 million tonnes for the general and administrative expenses
year ended December 31, 2010. year ended December 31, 2011, (‘SG&A’) for the year ended
Shipments were 8.8 million tonnes representing an increase of 11% December 31, 2011 were
in the first half of 2011, down 2% from 25.2 million tonnes for the $3.6 billion compared with
from the same period in 2010, year ended December 31, 2010. $3.3 billion for the year ended
while shipments in the second half December 31, 2010. SG&A
of the year were 9.6 million tonnes, Operating income (loss) represented 3.8% of sales for the
up 4% from the same period The table below provides a summary year ended December 31, 2011
in 2010. of operating income (loss) and compared with 4.3% for the year
operating margin of ArcelorMittal ended December 31, 2010. This
Average steel selling price increased for the year ended December 31, reduction resulted from higher sales
19% for the year ended December 2011, compared with operating in 2011 compared with 2010.
31, 2011 compared with the year income and operating margin for the
ended December 31, 2010. year ended December 31, 2010.
Average steel selling price in the
first half of 2011 was up 26% from
the same period in 2010, while
ArcelorMittal Annual Report 2011
Operating income (loss)
year ended December 31 Operating margin
2010 2011 2010 2011
Segment1 ($ million) ($ million) (%) (%)
Flat Carbon Americas 691 1,198 4 6
Flat Carbon Europe 534 (324) 2 (1)
Long Carbon Americas and Europe 1,004 646 5 3
AACIS 680 721 7 7
Distribution Solutions 164 52 1 –
Mining 1,624 2,568 37 41
1 Amounts are prior to inter-segment eliminations and include non-steel sales.
49

49. Financial review
continued
Operating income for the year Flat Carbon Americas (the proceeds of which will be
ended December 31, 2011 Operating income for the Flat re-invested in energy saving
included impairment losses of Carbon Americas segment projects) and a non-cash gain of
$331 million, which compared with amounted to $1.2 billion for the $600 million relating to unwinding
impairment losses of $525 million year ended December 31, 2011, of hedges on raw material
for the year ended December 31, compared with operating income purchases. Operating income for
2010. These impairment losses of $0.7 billion for the year ended the year ended December 31,
included a charge of $178 million December 31, 2010. The rise in 2010 had been negatively
for the Long Carbon segment, of operating income in 2011 generally impacted by impairment losses
which $151 million related to the reflected higher steel shipments of $78 million primarily relating to
extended idling of the ArcelorMittal and a higher average steel selling idled downstream assets, offset by
Madrid electric arc furnace and a price, which were positively a net gain of $140 million recorded
charge of $141 million related to impacted by product mix on the sale of carbon dioxide credits
various idled facilities in the Flat improvement. Operating income and a non-cash gain of $354 million
Carbon Europe segment, including for the segment amounted to relating to unwinding of hedges on
$85 million for the primary facilities $0.2 billion for the second half of raw material purchases.
of ArcelorMittal Liège Upstream, the year, compared with $1.0 billion
Belgium in connection with its in the first half. The decrease in In addition, operating income
intended closure. In determining operating income in the second half for the year ended December 31,
these expenses, the company took of 2011 reflected the effect of a 2011 (in particular in the second
into account permanently idled price-cost squeeze, especially in the half of 2011) was negatively
AACIS performance assets, and with respect to other fourth quarter in which operating impacted by restructuring costs
assets, analyzed the recoverable income decreased substantially, associated with the implementation
+11%
amount of these facilities based on driven primarily by a 5% decrease of the Asset Optimization Plan,
their value in use and determined in average selling price compared totaling $143 million, primarily
that the recoverable amount from with the third quarter of 2011. relating to Spanish entities.
these facilities was less than their
carrying amount. Flat Carbon Europe Long Carbon Americas
Increase in sales for AACIS in Operating loss for the Flat Carbon and Europe
2011, compared with the year Operating income for the year Europe segment for the year Operating income for the Long
ended December 31, 2010 ended December 31, 2011 was ended December 31, 2011 was Carbon Americas and Europe
positively impacted by a net gain $0.3 billion compared with segment for the year ended
of $93 million recorded on the operating income of $0.5 billion December 31, 2011 was
sale of carbon dioxide credits for the year ended December 31, $0.6 billion compared with
(the proceeds of which will be 2010. The decrease in operating $1.0 billion for the year ended
re-invested in energy saving income in 2011 reflected the effect December 31, 2010. The decrease
projects), a non-cash gain of of a significant price-cost squeeze in operating income in 2011
$600 million relating to unwinding and lower steel shipments primarily generally reflected the effect of a
of hedges on raw material in the second half of 2011, as price-cost squeeze primarily from
purchases and $104 million customers destocked and then South American operations and
related to the reversal of provisions adopted a ‘wait and see’ attitude particularly in the second half of
for litigation. Operating income for in light of market conditions and the year. Operating income for the
the year ended December 31, macro-economic uncertainty. segment amounted to $0.1 billion
2010 had been positively impacted Operating loss for the segment for the second half of the year,
by a gain of $140 million recorded amounted to $0.7 billion for the compared with $0.6 billion in the
on the sale of carbon dioxide credits second half of the year, compared first half of the year, primarily
and a non-cash gain of $354 million with operating income of driven by lower steel shipment
relating to unwinding of hedges $0.4 billion in the first half of the volumes and lower average
on raw material purchases. year, primarily driven by lower steel selling price.
shipment volumes and a significant
Operating income for the year price-cost squeeze. Operating income for the year
ended December 31, 2011 ended December 31, 2011
was negatively impacted by Operating income for the year (in particular in the second half of
restructuring costs associated with ended December 31, 2011 2011) was negatively impacted by
the implementation of the Asset (in particular in the second half of impairment losses of $178 million
Optimization Plan, totaling $219 2011) was negatively impacted by of which $151 million related to the
million, primarily affecting Flat impairment losses of $141 million extended idling of the ArcelorMittal
Carbon Europe and Long Carbon relating to various idled facilities Madrid electric arc furnace.
Europe operations, as well as various (including $85 million for the
Distribution Solutions entities. primary facilities of ArcelorMittal In addition, operating income
Liège Upstream, Belgium). These for the year ended December 31,
charges were offset by a gain of 2011 was negatively impacted by
$93 million recorded on the sale restructuring costs associated with
of carbon dioxide credits the implementation of the Asset
Optimization Plan, totaling
$37 million.
50

50. Overview
AACIS income of $1.6 billion for the year obligations and other long-term Standards (‘IFRS’), with certain
Our business
Operating income for the AACIS ended December 31, 2010. The liabilities). Net financing costs components of the contracts
segment for the year ended rise in operating income in 2011 were 29% higher for the year being embedded derivatives in
December 31, 2011 remained flat generally reflected higher iron ended December 31, 2011, accordance with IAS 39 and
at $0.7 billion, compared with the ore and coal prices and higher at $2.8 billion, compared with requiring, at each reporting period,
year ended December 31, 2010. shipments from own mines for $2.2 billion for the year ended changes in the fair value of the
Operating income in 2011 was both iron ore and coal. Operating December 31, 2010. embedded derivatives (recorded
positively affected by higher income for the segment amounted at $597 million at inception) to
average steel selling prices, offset to $1.4 billion for the second half Net interest expense (interest be recorded in the consolidated
Sustainability
by lower steel shipments primarily of the year, compared with expense less interest income) statements of operations, resulting
driven by loss of production at $1.2 billion in the first half. The was $1.8 billion for the year ended in gains or losses depending on
South African and Ukrainian increase in the second half of 2011 December 31, 2011 compared marking to market. In October
operations due to operational was primarily driven by higher iron with $1.4 billion for the year ended 2009 and December 2010,
issues. Operating income for the ore shipments from own mines, December 31, 2010. Interest respectively, the company waived
segment amounted to $0.3 billion tempered in the fourth quarter expense increased to $1.9 billion the cash settlement option with
for the second half of the year, by lower average selling prices for the year ended December 31, respect to its $800 million US
compared with $0.5 billion in the following the change to the 2011, compared with interest dollar-denominated convertible
Performance
first half. The decrease in operating seaborne benchmarking pricing expense of $1.6 billion for the bonds and undertook hedging
income in the second half of 2011 system impacting a substantial year ended December 31, 2010, transactions with respect to its
reflected primarily lower shipments proportion of marketable volumes primarily due to the higher level of euro-denominated convertible
for ArcelorMittal South Africa due compared with the third quarter borrowing and the higher cost of bonds, each of which actions
to loss of production following of 2011. bond financing compared to bank had the effect of offsetting the
operational issues as well as loans. Interest income for the year mark-to-market adjustments
seasonality effects. Operating income for the year ended December 31, 2011 on such bonds. As a result, no
ended December 31, 2010 had amounted to $0.1 billion, the additional mark-to-market gains
Governance
Distribution Solutions been negatively impacted by same as the year ended or losses on the convertible bonds
Operating income for the impairment losses of $305 million December 31, 2010. issued in April/May 2009 were
Distribution Solutions segment relating to the company’s coal recorded in 2011 or are expected
for the year ended December 31, mines in Russia (including the Foreign exchange and other net going forward. The company’s
2011 was $0.1 billion, compared disposal of the Anzherskaya mine). financing costs (which include call option on the mandatory
with operating income of bank fees, interest on pensions convertible bond issued in
$0.2 billion for the year ended Income from investment in and impairments of financial December 2009 remains subject
December 31, 2010. The decrease associates and joint ventures instruments) were $1 billion for to mark-to-market adjustments.
Financial statements
in operating income in 2011 ArcelorMittal recorded income the year ended December 31,
generally reflected the effect of $0.6 billion from investments 2011 compared with $1.2 billion Loss related to the fair value
of a price-cost squeeze in the in associates and joint ventures for the year ended December 31, of freight, commodity and
distribution business. Operating loss for the year ended December 31, 2010, reflecting primarily foreign other non-foreign exchange and
for the segment amounted to 2011, compared with income from exchange impacts (in particular, interest rate-related derivative
$0.1 billion for the second half of investments in associates and joint the impact of dollar appreciation instruments not qualifying for
the year, compared with operating ventures of $0.5 billion for the year and depreciation on euro- hedge accounting, amounted to
income of $0.2 billion in the first ended December 31, 2010. denominated debt). $10 million for the year ended
half of 2011, primarily reflecting Income for the year ended December 31, 2011, compared
significant price-cost squeeze. December 31, 2011 included an Mark-to-market adjustments on with a gain of $43 million for the
impairment loss of $107 million, the call option of the mandatory year ended December 31, 2010.
Operating income for the year reflecting the reduction of the convertible bonds for the year
ended December 31, 2010 had carrying amount of the investment ended December 31, 2011 were Income tax expense (benefit)
been negatively impacted by in Macarthur Coal to the net a gain of $42 million, compared ArcelorMittal recorded a
impairment losses of $113 million proceeds from the sale, as a result with a gain of $0.4 billion for the consolidated income tax expense
relating to impairment on certain of the company’s withdrawal from year ended December 31, 2010. of $0.9 billion for the year ended
subsidiaries, primarily reflecting the joint venture with Peabody The 2011 effect related to the December 31, 2011, compared
the weak construction market. Energy to acquire ownership of company’s mandatory convertible with a consolidated income tax
Macarthur Coal. bond while the 2010 effect related benefit of $1.5 billion for the year
Operating income for the year to convertible bonds issued by the ended December 31, 2010. The
ended December 31, 2011 Financing costs-net company in the spring of 2009. higher income tax of $0.9 billion for
was negatively impacted by Net financing costs include net On April 1, 2009 and May 6, 2009, full year 2011 was primarily due to
restructuring costs associated interest expense, revaluation of the company issued approximately lower recognition of deferred
with the implementation of the financial instruments, net foreign $2.5 billion of bonds convertible tax assets following dividend
ArcelorMittal Annual Report 2011
Asset Optimization Plan, totaling exchange income/expense into its shares (€1.25 billion upstreaming preventing interest
$40 million across various entities. (i.e. the net effects of transactions euro-denominated convertible deductibility in Luxembourg, partial
in a foreign currency other than the bonds due 2014 (OCEANEs) reversal of deferred tax assets in
Mining functional currency of a subsidiary) and $800 million US dollar- our Belgian operations triggered by
Operating income for the Mining and other net financing costs denominated convertible bonds due changes in local tax law and partial
segment for the year ended (which mainly include bank fees, 2014), which were determined to reversal of deferred tax assets in
December 31, 2011 was $2.6 accretion of defined benefit be hybrid instruments as defined by Spain imposed by time limitations
billion, compared with operating International Financial Reporting
51

51. Financial review
continued
for utilization of tax losses. For The statutory income tax expense shareholders in the first quarter
additional information related (benefit) and the statutory income of 2011) for the year ended
to ArcelorMittal’s income taxes, tax rates of the countries that December 31, 2011 amounted to
see Note 19 to ArcelorMittal’s most significantly resulted in the $461 million, including $42 million
consolidated financial statements. tax expense (benefit) at statutory of the post-tax net results
rate for each of the years ended contributed by the stainless steel
ArcelorMittal’s consolidated income December 31, 2010 and 2011 business prior to the completion
tax expense (benefit) is affected by are set forth below. of the spin-off on January 25,
the income tax laws and regulations 2011. The balance of $419 million
in effect in the various countries Non-controlling interest represents a one-time income
in which it operates and on the Net loss attributable to non- from the recognition through
pre-tax results of its subsidiaries controlling interests was $4 million the consolidated statements of
in each of these countries, which for the year ended December 31, operations of gains/losses relating
can vary from year to year. 2011, compared with net income to the demerged assets previously
ArcelorMittal operates in attributable to non-controlling recognized in equity.
jurisdictions, mainly in Eastern interests of $89 million for the year
Europe and Asia, that have a ended December 31, 2010. The Net income attributable to
structurally lower corporate income decrease relates to lower income in equity holders of the parent
tax rate than the statutory tax rate subsidiaries with non-controlling ArcelorMittal’s net income
as in effect in Luxembourg (28.8%), interests, particularly ArcelorMittal attributable to equity holders
and enjoys, mainly in Western South Africa, due to the weakening of the parent for the year ended
Europe, structural (permanent) tax of market conditions in 2011. December 31, 2011 decreased
advantages such as notional interest to $2.3 billion from net income
deduction and tax credits. The Discontinued operations attributable to equity holders of
income reported through the Net income from discontinued $2.9 billion for the year ended
company’s finance centers located operations (i.e. the company’s December 31, 2010, for the
principally in Belgium and Dubai is stainless steel business, which was reasons discussed above.
not taxable. spun-off into a separate company,
Aperam, whose shares were
distributed to ArcelorMittal
2010 2011
Statutory Statutory
Statutory income tax Statutory income tax
income tax rate income tax rate
United States (191) 35.00% 116 35.00%
Argentina 46 35.00% 30 35.00%
France 52 34.43% (141) 34.43%
Brazil 270 34.00% (15) 34.00%
Belgium 817 33.99% 617 33.99%
Germany (66) 30.30% (136) 30.30%
Spain (190) 30.00% (261) 30.00%
Luxembourg (2,249) 28.80% (534) 28.80%
Mexico 49 28.00% 110 28.00%
South Africa 62 28.00% 9 28.00%
Canada 127 26.90% 259 26.90%
Algeria (29) 25.00% (26) 25.00%
Courageous leadership
The concept of ‘courageous leadership’
Russia (43) 20.00% 7 20.00%
is being introduced through a series Kazakhstan 55 20.00% 114 20.00%
of workshops, training sessions Czech Republic 30 19.00% 2 19.00%
and ongoing communications programs Poland 6 19.00% (4) 19.00%
throughout the many ArcelorMittal
Mining sites around the world. Romania (21) 16.00% (29) 16.00%
At its core is a belief that courageous Ukraine 12 16.00% 28 16.00%
leadership – standing up and speaking Dubai – 0.00% – 0.00%
out about a potentially dangerous
situation – can play a major role Others (47) (113)
in safeguarding employees and Total (1,310) 33
contractors at our mines and plants.
During 2011, we introduced
employees to courageous leadership
in Brazil, West Virginia, US, ArcelorMittal
Mines Canada and Kuzbass, Russia.
In 2012 they are in turn passing
down their knowledge to their
team members.
Opposite Liberia
52

52. Overview
Our business
Safety for the people of Liberia
Sustainability
Marcus Wleh, corporate responsibility
manager for ArcelorMittal Liberia
commented: “In April 2011, we launched
a new community safety program,
blending international best practice
Performance
with local solutions to ensure that
community safety is not compromised
by ArcelorMittal operations.”
Going forward, the program aims
to build on the successes of
ArcelorMittal’s road and rail safety
Governance
campaign. Public awareness will be
increased through the use of radio
and street theatre, and the support
of safety education in schools.
ArcelorMittal will provide more safety
training workshops and continue
Financial statements
to partner with the police and
transport unions in order to keep
Liberia’s people safe.
ArcelorMittal Annual Report 2011
53

53. Liquidity and
capital resources
ArcelorMittal’s principal sources as of December 31, 2011 of credit facility entered into on
of liquidity are cash generated from compared with $11.3 billion as of September 30, 2010, contain
its operations, its credit facilities at December 31, 2010. ArcelorMittal restrictive covenants. Among other
the corporate level and various also has a €2 billion (approximately things, these covenants limit
working capital credit lines at $2.6 billion) commercial paper encumbrances on the assets of
its operating subsidiaries. program (of which €0.5 billion or ArcelorMittal and its subsidiaries,
approximately $0.6 billion was the ability of ArcelorMittal’s
Because ArcelorMittal S.A. is a outstanding as of December 31, subsidiaries to incur debt and the
holding company, it is dependent 2011), and its policy has been to ability of ArcelorMittal and its
upon the earnings and cash flows maintain availability under its credit subsidiaries to dispose of assets
of, and dividends and distributions facilities as back-up for its in certain circumstances. These
from, its operating subsidiaries to commercial paper program. agreements also require
pay expenses and meet its debt compliance with a financial
service obligations. Significant As of December 31, 2011, covenant, as summarized below.
cash or cash equivalent balances ArcelorMittal’s total debt, which
may be held from time to time at includes long-term debt and The company must ensure that
the company’s international short-term debt, was $26.4 billion, the ratio of ‘consolidated total net
operating subsidiaries, including in compared with $26.0 billion as of borrowings’ (consolidated total
particular those in France, where December 31, 2010. Net debt borrowings less consolidated
the company maintains a cash (defined as long-term debt plus cash and cash equivalents) to
management system under short-term debt, less cash and cash ‘consolidated Ebitda’ (the
which most of its cash and cash equivalents and restricted cash) consolidated net pre-taxation
equivalents are centralized, and in was $22.5 billion as of December profits of ArcelorMittal for a
Algeria, Argentina, Brazil, China, 31, 2011, up from $19.7 billion at measurement period, subject to
Kazakhstan, Morocco, South Africa, December 31, 2010. Most of the certain adjustments as set out in
Ukraine and Venezuela. Some of external debt is borrowed by the the facilities) does not, at the end
these operating subsidiaries have parent company on an unsecured of each ‘measurement period’
debt outstanding or are subject basis and bears interest at varying (each period of 12 months ending
to acquisition agreements that levels based on a combination of on the last day of a financial
impose restrictions on such fixed and variable interest rates. half-year or a financial year of the
operating subsidiaries’ ability to pay Gearing (defined as net debt company), exceed a certain ratio,
dividends, but such restrictions are divided by total equity) at currently 3.5 to one.
not significant in the context of December 31, 2011 was 37%
ArcelorMittal’s overall liquidity. compared with 30% at December The company refers to this ratio as
Repatriation of funds from 31, 2010. Total debt increased the leverage ratio. As of December
operating subsidiaries may also period-on-period primarily due to 31, 2011, the ‘leverage ratio’
be affected by tax and foreign the bond issuances made during stood at approximately 2.2 to one,
exchange policies in place from the year and debt drawn under constant compared with 2.2 to
time to time in the various credit lines. Net debt increased one as of December 31, 2010.
countries where the company period-on-period primarily due The financial covenant in the above
operates, though none of these to increases in working capital referenced principal credit facilities
policies are currently significant resulting from higher levels of would permanently fall away were
in the context of ArcelorMittal’s steel production, essentially in the company to meet certain
overall liquidity. the first half, and notwithstanding defined rating criteria.
a substantial working capital
In management’s opinion, reduction in the fourth quarter. Non-compliance with the
ArcelorMittal’s credit facilities covenants in the facilities described
are adequate for its present ArcelorMittal’s principal credit above would entitle the lenders
requirements. facilities, which are the $6 billion under such facilities to accelerate
revolving credit facility entered into the company’s repayment
As of December 31, 2011, on March 18, 2011 (the ‘$6 billion obligations. The company was
ArcelorMittal’s cash and cash facility’), the $4 billion revolving in compliance with the financial
equivalents, including restricted credit facility entered into on May covenants in the agreements
cash and short-term investments, 6, 2010 (the ‘$4 billion facility’), related to all of its borrowings
amounted to $3.9 billion compared the revolving credit bilateral facility as of December 31, 2010 and
with $6.3 billion as of December of $300 million entered into on December 31, 2011.
31, 2010. In addition, ArcelorMittal June 30, 2010 (the ‘$300 million
had available borrowing capacity of facility’) and the $500 million
$8.6 billion under its credit facilities multi-currency revolving letter
54

54. Overview
The following table summarizes the repayment schedule of ArcelorMittal’s outstanding indebtedness, which
Our business
includes short-term and long-term debt, as of December 31, 2011:
Repayments amount per year ($ billion)
Type of indebtedness as of December 31, 2011 2012 2013 2014 2015 2016 >2016 Total
Term loan repayments
– Convertible bonds1 – 0.1 2.1 – – – 2.2
– Bonds – 3.4 1.3 1.7 1.8 9.2 17.4
Sustainability
Subtotal – 3.5 3.4 1.7 1.8 9.2 19.6
Long-term revolving credit
facilities
– $6 billion facility – – – – 1.7 – 1.7
– $4 billion facility – – – – – – –
– $300 million facility – – – – – – –
Commercial paper2 0.6 – – – – – 0.6
Other loans 2.2 0.5 0.3 0.3 0.7 0.5 4.5
Performance
Total gross debt $2.8 $4.0 $3.7 $2.0 $4.2 $9.7 $26.4
The following table summarizes the amount of credit available as of December 31, 2011 under ArcelorMittal’s
principal credit facilities:
Facility
Credit lines available amount Drawn Available
Governance
$6 billion facility $6.0 $1.7 $4.3
$4 billion facility $4.0 – $4.0
$300 million facility $0.3 – $0.3
Total committed lines $10.3 $1.7 $8.6
1 Represents the financial liability component of the approximately $250 million to a total outstanding principal amount of $1 billion.
$2.5 billion of convertible bonds issued on April 1, 2009 and May In December 2010, ArcelorMittal acquired certain call options on
6, 2009, respectively, as well as of the $750 million mandatory its own shares in order to hedge its obligations arising out of the
convertible bond issued by a wholly owned Luxembourg subsidiary potential conversion of its euro-denominated 7.25% convertible
Financial statements
of the company to a Luxembourg affiliate of Crédit Agricole bonds due 2014 and its US dollar-denominated 5% convertible
(formerly Calyon S.A.) in December 2009. In April 2011, the bonds due 2014.
conversion date of the mandatory convertible bond was extended 2 Commercial paper is expected to continue to be rolled over in
to January 31, 2013. On September 27, 2011, the company the normal course of business.
increased the amount of the mandatory convertible bond by
Supporting House of Hope
The ArcelorMittal Foundation
supports House of Hope
(‘Dar el Amal’), an association
which helps children living in
the streets of El Jadida, south of
Casablanca. Children are provided
with food as well as workshops
to improve school results and
psychological support. ArcelorMittal Annual Report 2011
55

55. Liquidity and
capital resources
continued
As of December 31, 2011, Financings On June 30, 2010, ArcelorMittal
ArcelorMittal had guaranteed The principal financings of entered into a bilateral three-year
approximately $1.0 billion of ArcelorMittal and its subsidiaries are revolving credit facility of $300
debt of its operating subsidiaries summarized below by category. million. On July 12, 2010,
and $1.3 billion of total debt ArcelorMittal entered into an
of ArcelorMittal Finance. Principal credit facilities additional bilateral three-year
ArcelorMittal’s debt facilities have On March 18, 2011, ArcelorMittal revolving credit facility of $300
provisions whereby the acceleration entered into the $6 billion facility, million, which was retroactively
of the debt of another borrower which may be utilized for general effective as of June 30, 2010.
within the ArcelorMittal group corporate purposes and which Each of these facilities was to be
could, under certain circumstances, matures in 2016. The $6 billion used for general corporate purposes
lead to acceleration under such facility replaced the company’s and was originally scheduled to
facilities. Pursuant to amendment previous €17 billion credit facility mature in 2013. As of December
agreements entered into on March dated November 30, 2006 31, 2011, one facility was
18, 2011, the above referenced (the ‘€17 billion facility’) after cancelled and the other facility
principal credit facilities no longer it was fully repaid and cancelled remained fully available.
contain covenants involving on March 31, 2011. As of
restrictions on dividends, capital December 31, 2011, $1.7 billion On September 30, 2010,
expenditures or acquisitions. of principal was outstanding under ArcelorMittal entered into the
the $6 billion facility. $500 million revolving multi-
The average debt maturity currency letter of credit facility
of the company was 6.3 years On May 6, 2010, ArcelorMittal (the ‘letter of credit facility’),
as of December 31, 2011, entered into the $4 billion facility, a which replaced an $800 million
compared with 5.1 years as three-year revolving credit facility multi-currency letter of credit
of December 31, 2010. for general corporate purposes facility entered into on December
which replaced the company’s 30, 2005. The letter of credit
Further information regarding previous $4 billion revolving credit facility is used by the company
ArcelorMittal’s outstanding facility dated May 13, 2008 and the and its subsidiaries for the issuance
long-term indebtedness as of related $3.25 billion forward-start of letters of credit and other
December 31, 2011 is set forth facility dated February 13, 2009. instruments. The terms of the
in Note 15 to ArcelorMittal’s These facilities were cancelled on letters of credit and other
consolidated financial statements. May 12, 2010 (following this instruments contain certain
cancellation, neither of the restrictions as to duration. On
forward-start facilities entered into September 30, 2011, the maturity
by the company during the first of the letter of credit facility was
half of 2009 remain in effect). On extended from September 30,
September 30, 2011, the maturity 2015 to September 30, 2016.
date of the $4 billion facility was
extended to May 6, 2015. As of
December 31, 2011, the $4 billion
facility remains fully available.
56

56. Overview
2011 capital markets On November 7, 2004, 5.375%, and the $1.5 billion
Our business
transactions ArcelorMittal Finance issued notes due 2018 bear interest
On March 7, 2011, ArcelorMittal €500 million principal amount at the rate of 6.125%.
completed an offering of three of unsecured and unsubordinated
series of US dollar-denominated fixed-rate bonds bearing interest In 2009, ArcelorMittal completed
notes, consisting of $500 million at 4.625% due November 7, 2014. several capital markets transactions,
aggregate principal amount of the proceeds of which were
3.75% notes due 2016, $1.5 billion The company has entered into principally used to refinance existing
aggregate principal amount of five separate agreements with the indebtedness. The transactions
Sustainability
5.50% notes due 2021 and European Bank for Reconstruction included the issuance of the
$1 billion aggregate principal and Development (‘EBRD’) for following instruments that
amount of 6.75% notes due 2041. on-lending to the following remain outstanding:
The proceeds were used to prepay subsidiaries: ArcelorMittal Galati on
the last two term loan installments November 18, 2002, ArcelorMittal • an offering of €1.25 billion
under the €17 billion facility. Kryviy Rih on April 4, 2006, (approximately $1.6 billion) of
ArcelorMittal Temirtau on 7.25% bonds convertible into
On April 20, 2011, the conversion June 15, 2007, and ArcelorMittal and/or exchangeable for new
Performance
date of the $750 million mandatory Skopje and ArcelorMittal Zenica or existing ArcelorMittal shares
convertible bond was extended from on November 10, 2005. The last (OCEANEs) due 2014 which
May 25, 2011 to January 31, 2013. repayment installment under closed on April 1, 2009;
these loans is in January 2015.
• an offering of US dollar-
On September 27, 2011, the The amount outstanding under
denominated 5% convertible
company increased the size of the these loans in the aggregate as
bonds due 2014 for $800 million
$750 million mandatory convertible of December 31, 2011 was
which closed on May 6, 2009;
bond by $250 million to $1 billion. $118 million, compared with
Governance
$178 million as of December 31, • an offering of two series of US
On December 9, 2011, 2010. The loan relating to dollar-denominated bonds (9%
ArcelorMittal completed a private ArcelorMittal Galati was fully notes due 2015 and 9.85% notes
placement of €125 million of repaid on November 23, 2009. due 2019) totaling $2.25 billion
6.20% notes due in 2016, under which closed on May 20, 2009;
its wholesale EMTN program On July 24, 2007, ArcelorMittal
• an offering of two series
established on September 29, 2011. Finance and a subsidiary signed
of euro-denominated notes
a €500 million five-year loan
Financial statements
(8.25% notes due 2013 and
Please refer to note 27 of the agreement due 2012 that bears
9.375% notes due 2016) totaling
consolidated financial statements interest based on EURIBOR plus a
€2.5 billion ($3.5 billion) which
for capital market transactions margin, the proceeds of which may
closed on June 3, 2009;
completed in 2012. be used by other entities within
ArcelorMittal. • an offering of $1 billion of US
Other outstanding loans and dollar-denominated 7% notes
debt securities On May 27, 2008, the due 2039 which closed on
ArcelorMittal Jubail celebrates
On July 15, 2004, ArcelorMittal company issued unsecured October 1, 2009; and On February 21, 2012, our Jubail
Finance issued €100 million and unsubordinated fixed rate project in Saudi Arabia celebrated
• a private placement of a $750
principal amount of unsecured and US dollar-denominated notes in a significant health and safety
million, 17-month mandatory milestone in the ongoing construction
unsubordinated fixed rated notes two tranches totaling $3 billion.
convertible bond by a wholly of the new seamless tubular products
bearing interest at 5.50% due The $1.5 billion notes due 2013 facility. More than ten million hours
owned Luxembourg subsidiary of
July 15, 2014. bear interest at the rate of have been worked on the
construction site without any lost
time injuries as of mid-January 2012
– a special moment on our journey
to zero.
To commemorate this
accomplishment, more than 2,000
employees, contractors, suppliers
and special guests gathered in Jubail
to celebrate.
Nearly 30 special awards were given
to employees and contractors
recognizing outstanding individual
ArcelorMittal Annual Report 2011
achievements and efforts.
57

57. Liquidity and
capital resources
continued
the company to a Luxembourg True sale of receivables Earnings distribution
affiliate of Crédit Agricole (‘TSR’) programs Considering the worsening
(formerly Calyon S.A.), with the The company has established sales global economic conditions since
proceeds invested in notes linked without recourse of trade accounts September 2008, ArcelorMittal’s
to shares of Erdemir of Turkey receivable programs with financial board of directors recommended
and Macarthur Coal Limited of institutions for a total amount as on February 10, 2009, a reduction
Australia, both of which were of December 31, 2011 of €2,540 of the annual dividend in 2009 to
publicly listed companies in which million, $900 million and CAD 215 $0.75 per share (with quarterly
ArcelorMittal held a minority million, referred to as true sale of dividend payments of $0.1875)
stake. In ArcelorMittal’s receivables (‘TSR’) programs. from $1.50 per share previously.
consolidated financial statements Through the TSR programs, The dividend policy was approved
for the year ended December 31, certain operating subsidiaries of by the annual general meeting of
2009, the mandatory convertible ArcelorMittal surrender the control, shareholders on May 12, 2009,
bond was recorded as non- risks and benefits associated with and was also maintained in 2010
controlling interests of $695 the accounts receivable sold; and 2011. Quarterly dividend
million ($684 million net of fees therefore, the amount of payments took place on March
and tax) and $55 million as debt. receivables sold is recorded as a sale 14, 2011, June 14, 2011,
As a result of the completion of of financial assets and the balances September 12, 2011 and
the sale of the shares in are removed from the consolidated December 12, 2011.
Macarthur on December 21, statements of financial position at
2011, the notes linked to the the moment of sale. The total The board of directors will submit
Macarthur shares were subject to amount of receivables sold under to the approval of the shareholders
an early redemption for $1,208 TSR programs and derecognized in at the annual general meeting of
million. The proceeds from the accordance with IAS 39 for the shareholders to be held in May
redemption of the notes were years ended December 31, 2009, 2012, a proposal to maintain the
placed with Crédit Agricole until 2010 and 2011 was $21.8 billion, quarterly dividend at $0.1875 per
January 17, 2012. On that date, $29.5 billion and $35.3 billion, share, with dividends payments to
notes linked to China Oriental respectively (with amounts of occur on a quarterly basis in 2012.
Group Company Limited receivables sold in euros and The dividend payment calendar is
were issued by a subsidiary Canadian dollars converted to available on www.arcelormittal.com
of ArcelorMittal. US dollars at the monthly average
exchange rate). Expenses incurred ArcelorMittal held 12.0 million
Commercial paper program
under the TSR programs (reflecting shares in treasury as of
ArcelorMittal has a €2.0 billion
the discount granted to the December 31, 2011, compared
commercial paper program in
acquirers of the accounts with 12.4 million shares as of
the French market, which had
receivable) recognized in the December 31, 2010. As of
approximately €0.5 billion
consolidated statements of December 31, 2011, the number
($0.6 billion) outstanding as of
operations for the years ended of treasury shares was equivalent
December 31, 2011 compared
December 31, 2010 and 2011 to approximately 0.77% of
with €1.7 billion ($2.2 billion) as
were $110 and $152 million, the total issued number
Health and safety day around of December 31, 2010.
the world respectively. of ArcelorMittal shares.
At Baffinland Iron Ore Corporation
in the Arctic Circle, one of the key
safety aspects to consider is
outdoor sun safety. The team
received classes and a review
of the appropriate controls including
the use of clothing, hats,
sun block lotion and industrial
safety sunglasses. In these harsh
conditions this must be taken
seriously as for some parts of the
year, there is 24 hour sunlight.
A lip balm of SPF 30 was
handed out to all as a reminder
to keep in their pockets.
58

58. Overview
Our business
The following table presents a summary of cash flow of ArcelorMittal:
Summary of cash flow “Our strategy for
year ended December 31
2010 2011
2012 will include the
($ million) ($ million) disposal of selected
Net cash provided by operating activities 4,015 1,777 and targeted non-
Net cash used in investing activities (3,438) (3,678) core non-consolidated
Net cash used in financing activities (7) (540)
assets and we will
Sustainability
work closely with our
Sources and uses of cash Net cash used in Net cash used in
investing activities financing activities
rating agencies in
Net cash provided by Net cash used in investing activities Net cash used in financing activities order to preserve our
operating activities was $3.7 billion for the year ended was $0.5 billion for the year ended investment grading.
For the year ended
December 31, 2011, net cash
December 31, 2011 compared December 31, 2011, compared Furthermore, we will
with $3.4 billion in 2010, primarily with $7 million in 2010. The
provided by operating activities aim to institutionalize
Performance
due to higher capital expenditures, increase in cash used in financing
decreased to $1.8 billion, compared as well as inflows of $796 million activities was primarily due to an the risk management
with $4.0 billion for the year ended from the sale of the company’s increase in debt repayments, offset culture.”
December 31, 2010, mainly stake in Macarthur Coal and by proceeds of long-term debt,
because of operating working $129 million from the sale of the primarily due to bond issuances Sudhir Maheshwari
capital deployment. The net cash company’s 12% stake in Baosteel- and drawdowns on credit facilities. Member of the Group
provided by operating activities Management Board, responsible
NSC/Arcelor (BNA) Automotive Co. Net cash used in financing activities
was negatively impacted by a for corporate finance, M&A and
also included outflow for purchases
$3.8 billion increase (excluding risk management
Governance
Capital expenditures totaled of non-controlling interests, offset
discontinued operations) in $4.8 billion for the year ended by proceeds from the increase in
working capital (consisting of December 31, 2011 compared the outstanding amount of the
inventories plus trade accounts with $3.3 billion for the year ended mandatory convertible bonds.
receivable less trade accounts December 31, 2010. The company
payable) as inventories increased currently expects that capital Dividends paid during the year
by $3.1 billion; accounts receivable expenditures for the year ended ended December 31, 2011 were
increased by $0.7 billion and December 31, 2012 will amount to $1.2 billion, including $1,162 million
accounts payable decreased
Financial statements
approximately $4.0 to $4.5 billion, paid to ArcelorMittal shareholders
by $0.1 billion. The increase in most of which relates to the and $32 million paid to non-
inventories was largely attributable maintenance and improvement of controlling shareholders in
to higher raw material prices and existing sites (including health and subsidiaries. Dividends paid in the
higher levels of steel production safety investments). Growth year ended December 31, 2010
compared with 2010. The year-on- capital expenditure is expected were $1.3 billion.
year decrease in net cash provided to target mainly mining projects.
by operating activities was reduced Equity
somewhat by strong operating ArcelorMittal’s major capital Equity attributable to the equity
cash flow generation in the fourth expenditures in the year ended holders of the parent decreased
quarter ($2.9 billion) driven by a December 31, 2011 included the to $56.7 billion at December 31,
$1.8 billion release of working following major projects: Liberia 2011, compared with $62.4 billion
capital (itself resulting largely greenfield mining project; Andrade at December 31, 2010, primarily
from lower inventories), which capacity expansion plan in Andrade due to the stainless spin-off for
was a reversal of the trend of an mine in Brazil; capacity expansion $4.0 billion on January 25, 2011
investment in working capital in plan in ArcelorMittal Mines in and the dividend distribution for
the first three quarters of 2011. Canada; optimization of galvanizing $1.2 billion. See Note 17 to
and galvalume operations in ArcelorMittal’s consolidated
Dofasco, Canada; Baffinland financial statements for the year
project in Canada; and a capacity ended December 31, 2011.
expansion plan in Monlevade, Brazil.
ArcelorMittal Annual Report 2011
59

59. Disclosures about
market risk
Quantitative and All financial market risks are All counterparties and their
managed in accordance with respective limits require the prior
qualitative disclosures the treasury and financial risk approval of the corporate finance
about market risk management policy. These risks and tax committee. Standard
ArcelorMittal is exposed to a are managed centrally through agreements, such as those
number of different market risks group treasury by a group published by the International
arising from its normal business specializing in foreign exchange, Swaps and Derivatives Association,
activities. Market risk is the interest rate, commodity, internal Inc. (ISDA) are negotiated with all
possibility that changes in raw and external funding and cash and ArcelorMittal trading counterparties.
materials prices, foreign currency liquidity management.
exchange rates, interest rates, Derivative instruments
base metal prices (zinc, nickel, All financial market hedges are ArcelorMittal uses derivative
aluminum and tin) and energy governed by ArcelorMittal’s treasury instruments to manage its exposure
prices (oil, natural gas and power) and financial risk management to movements in interest rates,
will adversely affect the value of policy, which includes a delegated foreign exchange rates and
ArcelorMittal’s financial assets, authority and approval framework, commodity prices. Changes in the
liabilities or expected future sets the boundaries for all hedge fair value of derivative instruments
cash flows. activities and dictates the required are recognized in the consolidated
approvals for all treasury activities. statements of operations or in
The fair value information presented Trading activity and limits are equity according to nature and
below is based on the information monitored on an ongoing basis. effectiveness of the hedge.
available to management as of ArcelorMittal enters into
the date of the consolidated transactions with numerous Derivatives used are conventional
statements of financial position. counterparties, mainly banks and exchange-traded instruments such
Although ArcelorMittal is not financial institutions, as well as as futures and options, as well as
aware of any factors that would brokers, major energy producers non-exchange-traded derivatives
significantly affect the estimated and consumers. such as over-the-counter swaps,
fair value amounts, such amounts options and forward contracts.
have not been comprehensively As part of its financing and
revalued for the purposes of this cash management activities, Currency exposure
annual report since that date, and ArcelorMittal uses derivative ArcelorMittal seeks to manage
therefore, the current estimates of instruments to manage its exposure each of its entities’ exposure to its
fair value may differ significantly to changes in interest rates, foreign operating currency. For currency
from the following amounts exchange rates and commodity exposure generated by activities,
presented. The estimated fair prices. These instruments are the conversion and hedging of
values of certain financial principally interest rate and revenues and costs in foreign
instruments have been determined currency swaps, spots and currencies is typically performed
using available market information forwards. ArcelorMittal may also using currency transactions on the
or other valuation methodologies use futures and options contracts. spot market and forward market.
that require considerable judgment For some of its business segments,
in interpreting market data and Counterparty risk ArcelorMittal hedges future
developing estimates. The fair ArcelorMittal has established cash flows.
value estimates presented below detailed counterparty limits to
are not necessarily indicative of mitigate the risk of default by its Because a substantial portion
the amounts that ArcelorMittal counterparties. The limits restrict of ArcelorMittal’s assets, liabilities,
could realize in current market the exposure ArcelorMittal may sales and earnings are denominated
transactions. have to any single counterparty. in currencies other than the US
Counterparty limits are calculated dollar (its reporting currency),
Risk management taking into account a range of ArcelorMittal has exposure to
ArcelorMittal has implemented strict factors that govern the approval fluctuations in the values of these
policies and procedures to manage of all counterparties. The factors currencies relative to the US dollar.
and monitor financial market risks. include an assessment of the These currency fluctuations,
Organizationally, supervisory counterparty’s financial soundness especially the fluctuation of the
functions are separated from and its ratings by the major rating value of the US dollar relative to
operational functions, with proper agencies, which must be of a high the euro, the Canadian dollar, the
segregation of duties. Financial quality. Counterparty limits are Brazilian real and the South African
market activities are overseen by monitored on a periodic basis. rand, as well as fluctuations in the
the CFO, the corporate finance and currencies of the other countries in
tax committee and the Group which ArcelorMittal has significant
Management Board. operations and/or sales, could have
a material impact on the result of
its operations.
60

60. Overview
ArcelorMittal faces transaction risk, where its businesses generate sales in one currency but incur costs
Our business
relating to that revenue in a different currency. For example, ArcelorMittal’s non-US subsidiaries may
purchase raw materials, including iron ore and coking coal, in US dollars, but may sell finished steel products
in other currencies. Consequently, an appreciation of the US dollar will increase the cost of raw materials,
thereby negatively impacting the company’s operating margins.
Based on high-level estimates for 2011, the table below reflects the impact of a 10% depreciation of
the functional currency on budgeted cash flows expressed in the respective functional currencies of the
various entities:
Sustainability
Transaction impact of move
of foreign currency on cash flows
Entity functional currency in $ equivalent (in millions)
US dollar (39)
Euro (900)
Other (145)
Performance
ArcelorMittal faces translation risk, which arises when ArcelorMittal translates the consolidated statements of
operations of its subsidiaries, its corporate net debt and other items denominated in currencies other than the
US dollars for inclusion in ArcelorMittal’s consolidated financial statements.
Based on high-level estimates for 2011, the table below, in which it is assumed that there is no indexation
between sales prices and exchange rates, illustrates the impact of an appreciation of 10% of the US dollar.
Governance
Translation impact of appreciation
of dollar on cash flows
Entity functional currency in $ equivalent (in millions)
Euro (179)
Other (166)
The table below illustrates the impact of exchange rate fluctuations on the conversion of the net debt of
Financial statements
ArcelorMittal into US dollars (sensitivity taking derivative transactions into account):
Impact of 10% move of the
US dollar on net debt translation
Currency in $ equivalent (in millions)
Brazilian real 16
Canadian dollar (14)
Euro (940)
US dollar –
Other (3)
ArcelorMittal Annual Report 2011
61

61. Disclosures about
market risk
continued
Interest rate sensitivity
Short-term interest rate exposure and cash
Cash balances, which are primarily composed of euros and US dollars, are managed according to the short-term
(up to one year) guidelines established by senior management on the basis of a daily interest rate benchmark,
primarily through short-term interest rate swaps and short-term currency swaps, without modifying the
currency exposure.
Interest rate risk on debt
ArcelorMittal’s policy consists of incurring debt at fixed and floating interest rates, primarily in US dollars and
euros according to general corporate needs. Interest rate and currency swaps are utilized to manage the
currency and/or interest rate exposure of the debt.
The estimated fair values of ArcelorMittal’s short-term and long-term debt are as follows:
2010 2011
($ million) Carrying value Estimated fair value Carrying value Estimated fair value
Instruments payable bearing interest at
variable rates 5,386 5,378 4,156 3,743
Instruments payable bearing interest at
fixed rates 17,714 21,337 20,731 21,675
Long-term debt, including current portion 23,100 26,715 24,887 25,418
Short-term debt 2,908 2,769 1,531 1,561
Commodity price sensitivity
ArcelorMittal utilizes a number of exchange-traded commodities in the steelmaking process. In certain
instances, ArcelorMittal is the leading consumer worldwide of certain commodities. In some businesses
and in certain situations, ArcelorMittal is able to pass this exposure on to its customers through surcharges.
The residual exposures are managed as appropriate.
Financial instruments related to commodities (base metals, energy and freight) are utilized to manage
ArcelorMittal’s exposure to price fluctuations.
Hedges in the form of swaps and options are utilized to manage the exposure to commodity price fluctuations.
The table below reflects commodity price sensitivity.
Impact of 10% move of
market prices as at December 31, 2011
Local corporate Commodities in $ equivalent (in millions)
responsibility reporting Zinc 75
In 2011, 10 local corporate Nickel 14
responsibility reports were
published, in Ukraine, Kazakhstan, Tin 12
Mexico, the US, Luxembourg, Aluminum 6
Czech Republic, Brazil, Gas 49
South Africa, Poland and
Argentina (Mexico, Poland
Brent 112
and Ukraine were first Freight 19
time reporters).
In respect of non-exchange traded commodities, ArcelorMittal is exposed to possible increases in the prices of
raw materials such as iron ore (which is generally correlated with steel prices with a time lag) and coking coal.
This exposure is managed through long-term contracts.
62

62. Overview
Summary of risks
and uncertainties
The following factors, • A prolonged period of weak • the fact that ArcelorMittal’s • economic policy, political, social
Our business
economic growth, either globally reserve and resource estimates and legal risks and uncertainties
among others, could or in ArcelorMittal’s key markets; could materially differ from in certain countries in which
cause ArcelorMittal’s mineral quantities that it may be ArcelorMittal operates or
• the risk that excessive capacity
actual results in the steel industry globally and
able to actually recover, that its proposes to operate;
to differ materially particularly in China may hamper
mine life estimates may prove
• fluctuations in currency exchange
inaccurate and the fact that
from those discussed the steel industry’s recovery
market fluctuations may render
rates, particularly the euro to US
in the forward-looking and weigh on the profitability
certain ore reserves uneconomical
dollar exchange rate, and the risk
Sustainability
of steel producers; of impositions of exchange
statements included to mine;
controls in countries where
throughout this • the risk of protracted weakness in
• drilling and production risks in ArcelorMittal operates;
steel prices or of price volatility;
annual report. relation to mining;
• the risk of disruptions to
• any volatility in the supply or
• rising extraction costs in relation ArcelorMittal’s manufacturing
prices of raw materials, energy
to mining; operations;
or transportation, or mismatches
of raw material and steel price • failure to manage continued • the risk of damage to
Performance
trends; growth through acquisitions; ArcelorMittal’s production facilities
due to natural disasters;
• increased competition in the steel • a Mittal family trust’s ability to
industry; exercise significant influence over • the risk that ArcelorMittal’s
the outcome of shareholder voting; insurance policies may provide
• the risk that unfair practices in
inadequate coverage;
steel trade could negatively • any loss or diminution in the
affect steel prices and reduce services of Mr Lakshmi N Mittal, • the risk of product liability claims;
ArcelorMittal’s profitability, or that ArcelorMittal’s chairman of the
• the risk of potential liabilities from
Governance
national trade restrictions could board of directors and chief
investigations, litigation and fines
hamper ArcelorMittal’s access to executive officer;
regarding antitrust matters;
key export markets;
• the risk that the earnings and cash
• the risk that ArcelorMittal’s
• increased competition from other flows of ArcelorMittal’s operating
governance and compliance
materials, which could significantly subsidiaries may not be sufficient
processes may fail to prevent
reduce market prices and demand to meet future funding needs at
regulatory penalties or
for steel products; the holding company level;
reputational harm, both at
Financial statements
• legislative or regulatory changes, • the risk that changes in operating subsidiaries and
including those relating to assumptions underlying joint ventures;
protection of the environment the carrying value of certain
• the risk of unfavorable changes to,
and health and safety; assets, including as a result
or interpretations of, the tax laws
of adverse market conditions,
• laws and regulations restricting and regulations in the countries in
could result in impairment of
greenhouse gas emissions; which ArcelorMittal operates;
tangible and intangible assets,
• the risk that ArcelorMittal’s high including goodwill; • the risk that ArcelorMittal may
level of indebtedness could not be able to fully utilize its
• the risk that significant capital
make it difficult or expensive to deferred tax assets; and
expenditure and other
refinance its maturing debt, incur
commitments ArcelorMittal • the risk that ArcelorMittal’s
new debt and/or flexibly manage
has made in connection with reputation and business could
its business;
acquisitions may limit its be materially harmed as a result
• risks relating to greenfield and operational flexibility and add of data breaches, data theft,
brownfield projects; to its financing requirements; unauthorized access or
successful hacking.
• risks relating to ArcelorMittal’s • ArcelorMittal’s ability to fund
mining operations; under-funded pension liabilities;
These factors are discussed in
• the risk of labor disputes; more detail in this annual report
on page 192.
ArcelorMittal Annual Report 2011
63

63. We have a stronger
balance sheet
Picture Vitória, Brazil
Since the onset of the global financial crisis three years ago,
we have significantly strengthened our balance sheet. Over that
period, we have reduced our net debt by $4 billion, to $22.5 billion,
and we expect to go on reducing it in 2012. As importantly,
we have extended the maturity profile of our debt from an average
of 2.6 years to 6.3 years. We have also diversified the sources
of our funding. In 2008, bank debt was the main source of funding
for ArcelorMittal; today it is limited primarily to our liquidity lines,
of which we have drawn just $1.7 billion. The business remains highly
cash generative. In 2011, operating cash flow excluding working
capital was $5.8 billion. Our debt is rated investment grade by
the ratings agencies, maintaining that credit rating remains a key
priority for ArcelorMittal.
Cash flow summary
$1,777 m
Net cash provided by operating activities,
year ended December 31, 2011

64. 65
Overview Our business Sustainability Performance Governance Financial statements ArcelorMittal Annual Report 2011

65. Board of directors
ArcelorMittal’s annual Lakshmi N Mittal Narayanan Vaghul Antoine Spillmann
general meeting of Lakshmi N Mittal, 61 and an Indian Narayanan Vaghul, 75 and an Indian Antoine Spillmann, 48 and a Swiss
shareholders on May 10, citizen, is the chairman and CEO of citizen, has over 50 years’ citizen, worked for leading
2011 acknowledged the ArcelorMittal. Mr Mittal founded experience in the financial sector investment banks in London from
expiration of the terms Mittal Steel in 1989, and guided its and was the chairman of ICICI 1986 to 2000. He is now an asset
of office of the following strategic development,with Arcelor. Group,in India from 1985services managerBruellan Wealthpartner at
in the merger in 2006
culminating
group
a leading financial
to 2009. the firm
and executive
directors: Mr Lakshmi He is a member of various boards Mr Vaghul is chairman of the Indian Management, an independent asset
N Mittal, Mr Antoine and trusts and also of the Indian Institute of Finance Management management company based in
Spillmann, Mr Lewis Prime Minister’s Global Advisory & Research and is also a board Geneva. Mr Spillmann studied in
Council, Kazakhstan’s Foreign member of Wipro Limited, Switzerland and London, receiving
B Kaden and Investors’ Council, World Economic Mahindra & Mahindra, Piramal diplomas from the London Business
HRH Prince Guillaume Forum’s International Business Healthcare and Apollo Hospitals. School in Investment Management
de Luxembourg. Council and World Steel and Corporate Finance.
Association’s (WSA) Executive Wilbur L Ross, Jr
At the same meeting, the Committee. He has received HRH Prince Guillaume
shareholders re-elected numerous awards and honors such Wilbur L Ross, Jr, 74 and a US
as Fortune’s 2004 ‘European
de Luxembourg
Mr Lakshmi N Mittal, Mr Antoine citizen, is the chairman and CEO
Spillmann, Mr Lewis B Kaden Businessman of the Year’, Financial of WL Ross & Co. LLC, a merchant HRH Prince Guillaume de
and HRH Prince Guillaume Times’ 2006 ‘Person of the Year’, banking firm, a position that he has Luxembourg, 48 and a Luxembourg
de Luxembourg for a new term 2007 Dwight D Eisenhower Global held since April 2000. WL Ross & citizen, worked for five years at the
of three years. The board of Leadership Award and Forbes 2008 Co is part of Invesco Private Capital, International Monetary Fund in
directors proposed to elect ‘Lifetime Achievement Award’. In a listed company, of which Mr Ross Washington, D.C., and spent two
Mr Bruno Lafont as a new board October 2010, he was awarded is Chairman. Mr Ross is also the years working for the Commission
member, and the shareholders WSA’s medal for services to the Chairman and CEO of Invesco of European Communities in
elected him for a three-year term Association and for contributing subsidiaries WLR Recovery Fund Brussels. Prince Guillaume headed a
on May 10, 2011. Mr Bruno to the sustainable development L.P., WLR Recovery Fund II L.P., WLR governmental development agency,
Lafont is considered an of the global steel industry. Recovery Fund III, WLR Recovery Lux-Development, for 12 years.
independent director. Fund IV, WLR Recovery Fund V, Asia
Lewis B Kaden Recovery Fund, Asia Recovery Fund Suzanne P Nimocks
As a result of these changes, Co-Investment, Absolute Recovery
the board of directors is Lewis B Kaden, 69 and a US citizen, Hedge Fund and American Home Suzanne P Nimocks, 52 and a US
composed of ten directors, of is the lead independent director of Mortgage Servicing Inc., none of citizen, was a director (senior
whom nine are non-executive ArcelorMittal. He has approximately which are listed. Mr Ross is the partner) with McKinsey & Company
directors and seven are 39 years of experience in corporate Chairman of Ohizumi from 1999 to 2010 and was with
independent directors. The governance, financial services, Manufacturing Company in Japan, the firm in various other capacities
directors are: Mr Lakshmi N dispute resolution and economic International Textile Group and since 1989. Ms Nimocks is
Mittal, Ms Vanisha Mittal Bhatia, policy. He is currently vice chairman Diamond Shipping, which are currently a board member for
Mr Antoine Spillmann, Mr Wilbur of Citigroup. Mr Kaden served as unlisted companies. Mr Ross is a Encana Corporation and Rowan
L Ross, Mr Lewis B Kaden, a director of Bethlehem Steel director of International Automotive Companies, Inc. both listed
Mr Narayanan Vaghul, Mr Jeannot Corporation for ten years and is Components and Compagnie companies, and Valerus, a private
Krecké, HRH Prince Guillaume currently chairman of the board of Européenne de Wagons SARL company. In the non-profit sector,
de Luxembourg, Ms Suzanne directors of the Markle Foundation (Luxembourg), both non-listed she serves on the board of directors
P Nimocks and Mr Bruno Lafont. and vice chairman of the Board of companies. Mr Ross is also a of the Houston Zoo and she is
The board of directors comprises Trustees of Asia Society. director of the Yale School of expected to assume the
one executive director, Management. chairmanship of its board of
Mr Lakshmi N Mittal, the chairman Vanisha Mittal Bhatia directors on July 1, 2012.
and chief executive officer of Jeannot Krecké
ArcelorMittal. Mr Lewis B Kaden Vanisha Mittal Bhatia, 31 and an Bruno Lafont
is the lead independent director. Indian citizen, was appointed as Jeannot Krecké, 61 and a
a member of the LNM Holdings Luxembourg citizen, was appointed Bruno Lafont, 55 and a French
None of the members of the board of directors in June 2004. as Luxembourg’s Minister of the citizen, started his career at Lafarge
board of directors, including Ms Vanisha Mittal Bhatia was Economy and Foreign Trade and in 1983. On January 1, 2006, he
the executive director, have appointed to Mittal Steel’s board Minister of Sport in 2004. As of became chief executive officer and
entered into service contracts of directors in December 2004. July 2004, he represents the in May 2007, he was appointed
with ArcelorMittal or any of She has a Bachelor of Arts degree Luxembourg government at the chairman and chief executive
its subsidiaries providing for in Business Administration from the Council of Ministers of the officer of the group. Mr Lafont is
benefits upon the termination European Business School and has European Union in the internal Special Adviser to the Mayor of
of their terms. worked at Mittal Shipping Ltd, market and industry sections of its Chongqing (China), President of the
Mittal Steel Hamburg GmbH, an competitiveness configuration. On EPE French Association (‘Enterprises
Internet-based venture capital fund, February 1, 2012, Jeannot Krecké for Environment’), a board member
within the procurement department retired from government and of EDF and a board member
of Mittal Steel, in charge of a decided to end his active political of ArcelorMittal.
cost-cutting project, and is currently career in order to pursue a range
head of strategy for Aperam. of different projects.
66

66. Overview
Our business
Sustainability
Performance
Governance
Financial statements
Left to right
ArcelorMittal Annual Report 2011
Lakshmi N Mittal
Lewis B Kaden
Vanisha Mittal Bhatia
Narayanan Vaghul
Wilbur L Ross, Jr
Jeannot Krecké
Left to right
Antoine Spillmann
HRH Prince Guillaume de Luxembourg
Suzanne P Nimocks
Bruno Lafont
67

67. Senior
management
The strategic direction Lakshmi N Mittal Davinder Chugh Lou Schorsch
of ArcelorMittal is the Lakshmi N Mittal is the chairman Davinder Chugh, member of Lou Schorsch, member of
responsibility of the and CEO of ArcelorMittal. Mr Mittal the Group Management Board, the Group Management Board,
Group Management founded Mittal Steel in 1989, and responsible for shared services, responsible for Flat Carbon
Board (GMB). The GMB guided its strategic development, has over 33 years of experience Americas, group strategy, CTO,
culminating in the merger in 2006 in the steel industry in general research and development,
members are elected with Arcelor. He is a member of management, materials purchasing, commercial coordination, global
by the board of directors various boards and trusts and also marketing, logistics, warehousing automotive and member of the IAC.
and the GMB is headed of the Indian Prime Minister’s Global and shipping. Mr Chugh is a Dr Schorsch was elected to the
by Lakshmi N Mittal as Advisory Council, Kazakhstan’s member of the Investment Group Management Board in May
Foreign Investors’ Council, World Allocation Committee (‘IAC’). 2011. Prior to this appointment he
chief executive officer Economic Forum’s International Before becoming a senior executive had been president and chief
(CEO). The GMB is Business Council and World Steel vice president of ArcelorMittal, he executive officer of Flat Carbon
supported by a strong Association’s (WSA) Executive served as the CEO of Mittal Steel Americas, a position established
team of 24 management Committee. He has received South Africa until 2006. Mr Chugh with the 2006 merger of Arcelor
numerous awards and honors was involved in the turnaround and and Mittal Steel, as well as a
committee members, such as Fortune’s 2004 ‘European consolidation of the South African member of the ArcelorMittal
working towards Businessman of the Year’, Financial operations of ArcelorMittal. management committee.
delivering the best Times’ 2006 ‘Person of the Year’,
possible performance 2007 Dwight D Eisenhower Global Peter Kukielski Gonzalo Urquijo
to all stakeholders while Leadership Award and Forbes 2008 Peter Kukielski, member of the
‘Lifetime Achievement Award’. In Gonzalo Urquijo, member of
continuously working October 2010, he was awarded Group Management Board, chief the Group Management Board,
to improve health and WSA’s medal for services to the executive of Mining, was appointed responsible for AACIS (excluding
safety results. Association and for contributing senior executive vice president and China and India), Distribution
head of Mining in December 2008. Solutions, Tubular Products,
to the sustainable development
of the global steel industry. Mr Kukielski was previously corporate responsibility, IAC
executive vice president and chief chairman, was previously senior
Aditya Mittal operating officer at Teck Cominco executive vice president and CFO
Limited. Prior to joining Teck of Arcelor, with responsibility for
Aditya Mittal is CFO of Cominco, he was chief operating finance, purchasing, IT, legal affairs,
ArcelorMittal, and a member of officer of Falconbridge Limited investor relations, Arcelor
the Group Management Board before which he held senior Distribution Solutions, and other
with additional responsibility for engineering and project activities. Prior to that, Mr Urquijo
Flat Carbon Europe, investor management positions with BHP also held several other positions
relations and communications. Billiton and Fluor Corporation. within Arcelor, including deputy
Prior to the merger to create senior executive vice president and
ArcelorMittal, Aditya Mittal held Sudhir Maheshwari head of the functional directorates
the position of President and CFO of distribution.
of Mittal Steel from October 2004 Sudhir Maheshwari, member of
to 2006. In 2008, Mr Aditya Mittal the Group Management Board, Michel Wurth
was awarded ‘European Business responsible for corporate finance,
Leader of the Future’ by CNBC M&A and risk management and Michel Wurth, member of the
Europe. In 2011, he was also India and China operations, is also Group Management Board,
ranked 4th in the ‘40 under 40’ alternate chairman of the corporate responsible for Long Carbon
list of Fortune magazine. He is a finance and tax committee and worldwide, was previously in charge
member of the World Economic chairman of the risk management of Flat Carbon Europe and Global
Forum’s The Forum of Young committee. Mr Maheshwari was R&D between 2006 and June 2011
Global Leaders, the Young previously a member of the as well as Distribution Solutions
Presidents’ Organization, a board management committee of between 2009 and June 2011.
member at the Wharton School ArcelorMittal, responsible for Prior to this he was vice president
and PPR. finance and M&A. Prior to this, he of the Group Management Board
was managing director, business of Arcelor and Deputy CEO, with
development and treasury at Mittal responsibility for Flat Carbon Steel
Steel from January 2005 until its including auto, coordination Brazil,
merger with Arcelor in 2006. R&D and NSC alliance. The creation
Mr Maheshwari also serves on of Arcelor in 2002 led to Mr Wurth’s
From left to right Lakshmi N Mittal,
Aditya Mittal, Davinder Chugh,
the board of directors of various appointment as senior executive
Peter Kukielski, Sudhir Maheshwari, subsidiaries of ArcelorMittal. vice president and CFO of Arcelor.
Lou Schorsch, Gonzalo Urquijo,
Michel Wurth
68

68. Overview
Our business
Sustainability
Performance
Governance
Financial statements
Management committee
Name Age1 Position
Bhikam Agarwal 59 Executive vice president, head of finance
Vijay Bhatnagar 64 Executive vice president, CEO India and China
Davinder Chugh 55 Member of the Group Management Board, responsible for shared services and member of the investment
allocation committee
Jefferson de Paula 53 Executive vice president, CEO Long Carbon Americas
Phil du Toit 59 Executive vice president, head of mining projects and exploration
Robrecht Himpe 53 Executive vice president, CEO Flat Carbon Europe
Peter Kukielski 55 Member of the Group Management Board, head of Mining
Sudhir Maheshwari 48 Member of the Group Management Board, responsible for corporate finance, M&A and risk management and India
and China operations
Aditya Mittal 35 CFO, member of the Group Management Board, with additional responsibility for Flat Carbon Europe, investor
relations and communications
Lakshmi N Mittal 61 Chairman and chief executive officer
Michael Pfitzner 62 Executive vice president, head of marketing and commercial coordination
Arnaud Poupart-Lafarge 46 Executive vice president, CEO Long Carbon Europe (including Annaba, Bosnia and Herzegovina, Ostrava and Sonasid)
Michael Rippey 54 Executive vice president, CEO USA
Lou Schorsch 62 Member of the Group Management Board, responsible for Flat Carbon Americas, group strategy, CTO, research and
development, global automotive and member of the investment allocation committee
ArcelorMittal Annual Report 2011
Bill Scotting 53 Executive vice president, head of strategy
Willie Smit 54 Executive vice president, head of human resources
Gonzalo Urquijo 50 Member of the Group Management Board, responsible for AACIS (excluding China and India), Distribution
Solutions, Tubular Products, corporate responsibility, investment allocation committee chairman
Michel Wurth 57 Member of the Group Management Board, responsible for Long Carbon worldwide
1 Age on December 31, 2011
Additional members of the management committee include Augusto Espeschit de Almeida (CEO Long Carbon Central and South America),
Brian Aranha (chief marketing officer, global automotive and Flat Carbon Americas, commercial coordination), Benjamin Baptista (CEO Flat South
America), Bill Chisholm (CEO ArcelorMittal Mexico), Gregory Ludkovsky (global research and development), Jean-Luc Maurange (CEO Flat Carbon
Europe, business division south west), Nku Nyembezi-Heita (CEO ArcelorMittal South Africa), Geert Van Poelvoorde (CEO Flat Carbon Europe,
business division north), Sanjay Samaddar (CEO Flat Carbon Europe, business division east and CEO ArcelorMittal Poland), Juergen Schachler
(CEO ArcelorMittal Dofasco), Kleber Silva (mining operations), PS Venkat (CEO Long Carbon North America), Marc Vereecke (chief technology
officer, with additional responsibility for in-house manufacturing services) and Alain Le Grix (CEO Distribution Solutions).
69

69. Group structure
ArcelorMittal
Flat Carbon Americas Flat Carbon Europe Long Carbon Americas
and Europe
ArcelorMittal ArcelorMittal ArcelorMittal ArcelorMittal Acindar ArcelorMittal
Brasil USA Atlantique et Belgium Belval &
Lorraine Differdange
ArcelorMittal ArcelorMittal ArcelorMittal ArcelorMittal ArcelorMittal ArcelorMittal
Lázaro Dofasco España Flat Carbon Brasil Hamburg
Cárdenas Europe
ArcelorMittal ArcelorMittal ArcelorMittal ArcelorMittal
Galati Poland Duisburg Las Truchas
ArcelorMittal ArcelorMittal ArcelorMittal ArcelorMittal
Méditerranée Bremen Gipuzkoa Montreal
ArcelorMittal Industeel ArcelorMittal ArcelorMittal
Eisenhüttenstadt Belgium Point Lisas Ostrava
Industeel ArcelorMittal Sonasid
France Warszawa
ArcelorMittal
Annaba
70

70. Overview
Our business
Sustainability
AACIS Mining Distribution Solutions
Performance
ArcelorMittal ArcelorMittal ArcelorMittal ArcelorMittal ArcelorMittal
Kryviy Rih South Africa Mines Canada Kuzbass International
Luxembourg
Governance
ArcelorMittal Minorca Mines ArcelorMittal
Temirtau Lázaro Cárdenas
Mining Assets
Financial statements
Hibbing ArcelorMittal
Taconite Mines Princeton
ArcelorMittal ArcelorMittal
Mineração Kryviy Rih
Serra Azul Mining Assets
ArcelorMittal
Temirtau
Mining Assets
ArcelorMittal Annual Report 2011
71

71. Corporate
governance
This section provides a summary of Board of directors for foreign private issuers (the
the corporate governance practices ‘NYSE standards’), (b) he or she is
Composition of the board
of ArcelorMittal. unaffiliated with any shareholder
of directors
owning or controlling more than 2%
The board of directors is in charge
Board of directors, Group of the overall governance and of the total issued share capital of
ArcelorMittal, and (c) the board
Management Board and direction of ArcelorMittal. It is of directors makes an affirmative
management committee responsible for the performance of determination to this effect. For
all acts of administration necessary
these purposes, a person is deemed
ArcelorMittal is governed by or useful in furtherance of the
affiliated to a shareholder if he
a board of directors and managed corporate purpose of ArcelorMittal,
or she is an executive officer, a
by a Group Management Board. except for matters reserved by
director who also is an employee,
The Group Management Board Luxembourg law or the articles of
a general partner, a managing
is assisted by a management association to the general meeting
member or a controlling shareholder
committee. of shareholders. The articles of
of such shareholder. The 10
association provide that the board
Principles of Governance of the
A number of corporate governance of directors is composed of a Luxembourg Stock Exchange, which
provisions in the articles of minimum of three and a maximum
constitute ArcelorMittal’s domestic
association of ArcelorMittal reflect of 18 members, all of whom, corporate governance code, require
provisions of the Memorandum of except the chief executive officer, ArcelorMittal to define the
Understanding signed on June 25, must be non-executive directors. independence criteria that
2006 (prior to Mittal Steel’s merger None of the members of the board apply to its directors.
with Arcelor), amended in April of directors, except for the chief
2008 and which mostly expired executive officer, may hold an
In line with Luxembourg practice,
on August 1, 2009. executive position or executive
the articles of association do not
mandate within ArcelorMittal or any
require directors to be shareholders
entity controlled by ArcelorMittal.
of the company.
Mr Lakshmi N Mittal was elected
The articles of association provide
chairman of the board of directors
that directors are elected and
on May 13, 2008. Mr Mittal is
removed by the general meeting
also ArcelorMittal’s chief executive
of shareholders by a simple majority
officer. Mr Mittal was re-elected
of votes cast. Other than as set
to the board of directors for a
out in the company’s articles of
three-year term by the annual
association, no shareholder has any
general meeting of shareholders
specific right to nominate, elect or
on May 10, 2011.
remove directors. Directors are
elected by the general meeting of
The board of directors is comprised
shareholders for three-year terms.
of 10 members, of which nine are
In the event that a vacancy arises
non-executive directors and one
on the board of directors for any
is an executive director. The chief
reason, the remaining members
executive officer of ArcelorMittal
of the board of directors may by a
is the sole executive director.
simple majority elect a new director
Ms Suzanne P Nimocks was elected
to temporarily fulfill the duties
to the board of directors on January
attached to the vacant post
25, 2011, and Mr Bruno Lafont
until the next general meeting
was elected to the board of
of the shareholders.
directors in May 2011. Mr François
Pinault resigned in 2011. The board
None of the members of the board
of directors now therefore has one
of directors, including the executive
additional member.
director, have entered into service
contracts with ArcelorMittal or any
Seven of the ten members of the
of its subsidiaries that provide for
board of directors are independent.
any form of remuneration or for
A director is considered
benefits upon the termination of
‘independent’ if (a) he or she is
their term. The remuneration of the
independent within the meaning
members of the board of directors
of the Listed Company Manual of
is determined on a yearly basis
the New York Stock Exchange, as
by the annual general meeting
amended from time to time, or any
of shareholders.
successor manual or provisions,
subject to the exemptions available
72

72. Overview
Operation of the board Each director has one vote and Annual self-evaluation
Our business
of directors none of the directors, including The board of directors decided in
the chairman, has a casting vote. 2008 to start conducting an annual
General
Decisions of the board of directors self-evaluation of its functioning in
The board of directors may engage
are made by a majority of the order to identify potential areas
the services of external experts or
directors present and represented for improvement. The first
advisers as well as take all actions
at a validly constituted meeting. self-evaluation process was carried
necessary or useful to implement
out in early 2009. The 2011
the company’s corporate purpose.
Lead independent director self-evaluation process was
Sustainability
The board of directors (including
In April 2008, the board of implemented through structured
its three committees) has its own
directors created the role of lead interviews between the lead
budget, which covers functioning
independent director. His or her independent director and each
costs such as external consultants,
function is to: director and covers the overall
continuing education activities for
performance of the board of
directors and travel expenses. • coordinate the activities of the
directors, its relations with senior
independent directors,
management, the performance
Meetings
• liaise between the chairman of of individual directors, and the
Performance
The board of directors meets when
the board of directors and the performance of the committees.
convened by the chairman of the
independent directors, The process is supported by the
board or any two members of the
company secretary under the
board of directors. The board of • call meetings of the independent
supervision of the chairman and
directors holds physical meetings directors when he or she
the lead independent director.
at least on a quarterly basis as five considers it necessary or
The findings of the self-evaluation
regular meetings are scheduled per appropriate, and
process are examined by the
year. The board of directors holds
• perform such other duties appointments, remuneration and
Governance
additional meetings if and when
as may be assigned to him corporate governance (‘ARCG’)
circumstances require, in person
or her by the board of directors committee and presented with
or by teleconference and can take
from time to time. recommendations from the
decisions by written circulation,
ARCG committee to the board
provided that all members of the
Mr Lewis B Kaden was elected of directors for adoption and
board of directors agree.
by the board of directors as implementation. Suggestions
ArcelorMittal’s first lead for improvement of the board of
The board of directors held eight
independent director in April 2008 directors’ process based on the
Financial statements
meetings in 2011. The average
and remains lead independent prior year’s performance and
attendance rate of the directors at
director, having been re-elected as functioning are implemented
the board of directors’ meetings
a director for a three-year term on during the following year.
was 96.6%.
May 10, 2011.
The 2011 board of directors’
In order for a meeting of the board
The agenda of each meeting of the self-evaluation was completed
of directors to be validly held, a
and discussed by the board in early
board of directors is decided jointly
majority of the directors must be
by the chairman of the board of February 2012. Overall satisfaction
present or represented, including at
directors and the lead independentwith the quality of the board
least a majority of the independent
director. process increased compared with
directors. In the absence of the
the previous year, based on high
chairman, the board of directors will
Separate meetings of participation levels by directors
appoint by majority vote a chairman
independent directors in the board of directors as well
for the meeting in question. The
The independent members of the as its committees in 2011 and the
chairman may decide not to
board of directors may schedule successful integration of the two
participate in a board of directors’
meetings outside the presence of new directors who joined the board
meeting, provided he has given a
non-independent directors. Four in 2011. The balance of the time
proxy to one of the directors who
meetings of the independent spent by the board of directors
will be present at the meeting. For
directors outside the presence of on strategic and other specific
any meeting of the board of
management and non-independent issues compared with the review
directors, a director may designate
directors were held in 2011. of financial and operational
another director to represent him
results and performance was
or her and vote in his or her name,
an issue identified to merit
provided that the director so
further consideration.
ArcelorMittal Annual Report 2011
designated may not represent more
than one of his or her colleagues at
any time.
73

73. Corporate
governance
continued
The board of directors believes that In 2011, the directors attended a • ArcelorMittal’s system of internal
its members have the appropriate total of four presentations made control regarding finance,
range of skills, knowledge and to them by internal specialists accounting, legal compliance and
experience, as well as the degree on specific areas of activity or ethics that the board of directors
of diversity, necessary to enable it corporate functions (e.g. human and senior management have
to effectively govern the business. resources, the Flat Carbon Europe established; and
Board composition is reviewed on segment) to enhance the directors’
• ArcelorMittal’s auditing,
a regular basis and additional skills knowledge in these areas and give
accounting and financial reporting
and experience are actively searched them the opportunity to ask
processes generally.
for in line with the expected questions directly to line managers.
development of ArcelorMittal’s Site visits in France and Luxembourg
The audit committee’s primary
business as and when appropriate. were also conducted by members
duties and responsibilities are to:
of the board of directors.
Continuing education program • be an independent and objective
To further bolster the skills of its Board of directors’ committees party to monitor ArcelorMittal’s
members, the board of directors The board of directors has three financial reporting process and
launched a continuous education committees: internal controls system;
program in 2009. The topics to
• the audit committee; • review and appraise the
be addressed through the program
audit efforts of ArcelorMittal’s
include areas of importance for the • the appointments, remuneration
independent auditors and internal
future growth and development and corporate governance
auditing department;
of the company (e.g. strategy, committee; and
marketing, human resources, • provide an open avenue of
• the risk management committee.
industrial development, corporate communication among the
governance, corporate responsibility, independent auditors, senior
Audit committee
legal and regulatory). Additional management, the internal audit
The audit committee must be
topics may be added at the request department and the board of
composed solely of independent
of the members of the board of directors;
members of the board of directors.
directors. The education program
The members are appointed by the • review major legal and compliance
usually consists of an introduction
board of directors each year after matters and their follow up;
by recognized experts in the
the annual general meeting of
relevant fields, who may be • approve the appointment and
shareholders. All of the audit
practitioners or academics, followed fees of the independent auditors;
committee members must be
by a facilitated discussion between and
independent as defined in the
the presenter and the board of
Rule 10A-3 of the US Securities • monitor the independence of the
directors. The members of the
Exchange Act of 1934, as independent auditors.
board of directors also have the
amended. The audit committee
opportunity to participate in
makes decisions by a simple Since May 10, 2011, the audit
specific programs designed for
majority with no member having committee consists of four
directors of publicly listed
a casting vote. The primary functionmembers: Mr Narayanan Vaghul
companies at reputable academic
of the audit committee is to assist (chairman), Mr Wilbur L Ross,
institutions and business schools.
the board of directors in fulfilling Mr Antoine Spillmann, and
its oversight responsibilities by Mr Bruno Lafont, each of whom is
reviewing: an independent director according
to the NYSE standards and the
• the financial reports and other
10 Principles of Corporate
financial information provided by
Governance of the Luxembourg
ArcelorMittal to any governmental
Stock Exchange. The chairman of
body or the public;
the audit committee is Mr Vaghul.
Mr Bruno Lafont joined the board
of directors on May 10, 2011 and
was appointed by the board of
directors to the audit committee
on the same date.
74

74. Overview
According to its charter, the audit • consider any candidate for The ARCG committee performs
Our business
committee is required to meet at appointment or reappointment an annual self-evaluation, which was
least four times a year. During to the board of directors at the completed in February 2012 with
2011, the audit committee met six request of the board of directors respect to its 2011 performance.
times. The average attendance rate and provide advice and
of the directors at the audit recommendations to it regarding Risk management committee
committee meetings held in 2011 the same; In June 2009, the board of
was 90.0%. directors created a risk
• evaluate the functioning of the
management committee to assist it
Sustainability
board of directors and monitor
The audit committee performs an with risk management, in line with
the board of directors’ self-
annual self-evaluation, which was recent developments in corporate
assessment process; and
completed in February 2012 with governance best practices and in
respect to its 2011 performance. • develop, monitor and review parallel with the creation of a group
corporate governance risk management committee
Appointments, remuneration and principles and corporate (‘GRMC’) at the executive level.
corporate governance committee responsibility policies applicable
The appointments, remuneration to ArcelorMittal, as well as The members are appointed by
Performance
and corporate governance their application in practice. the board of directors each year
committee (the ‘ARCG committee’) after the annual general meeting of
is comprised since May 10, 2011 The ARCG committee’s principal shareholders. The risk management
of four directors, each of whom criteria in determining the committee must be comprised of
is independent under the NYSE compensation of executives at least two members. At least
standards and the 10 Principles is to encourage and reward half of the members of the risk
of Corporate Governance of the performance that will lead to management committee must
Luxembourg Stock Exchange. long-term enhancement of be independent under the NYSE
Governance
shareholder value. The ARCG standards and the 10 Principles
The members are appointed by committee may seek the advice of Corporate Governance of the
the board of directors each year of outside experts. Luxembourg Stock Exchange.
after the annual general meeting The risk management committee
of shareholders. The ARCG The four members of the ARCG consists of three members:
committee makes decisions by a committee are Mr Lewis B Kaden, Mr Jeannot Krecké, Mr Antoine
simple majority with no member HRH Prince Guillaume de Spillmann and Ms Suzanne P
having a casting vote. Luxembourg, Mr Narayanan Vaghul, Nimocks. Ms Nimocks joined
Financial statements
and Ms Suzanne P Nimocks, each of the risk management committee
The board of directors has whom is independent in accordance on May 10, 2011. Mr Sudhir
established the ARCG committee to: with the NYSE standards and the Maheshwari, a member of the
10 Principles of Corporate Group Management Board who
• determine, on its behalf and
Governance of the Luxembourg chairs the GRMC, is an invitee
on behalf of the shareholders
Stock Exchange. The chairman of to the meetings of the risk
within agreed terms of reference,
the ARCG committee is Mr Kaden, management committee.
ArcelorMittal’s compensation
Ms Nimocks joined the ARCG
framework, including short and
committee on May 10, 2011. The risk management committee
long-term incentives for the
held a total of five meetings in
chief executive officer, the chief
The ARCG committee is required 2011. According to its charter, it is
financial officer, the members of
to meet at least twice a year. required to meet at least four times
the Group Management Board
During 2011, this committee met per year on a quarterly basis or
and the members of the
six times. The average attendance more frequently if circumstances
management committee;
rate at the ARCG committee so require. The average attendance
• review and approve succession meetings held in 2011 was 100%. rate at the risk management
and contingency plans for key committee meetings held in 2011
managerial positions at the level was 100%.
of the Group Management Board
and the management committee;
ArcelorMittal Annual Report 2011
75

75. Corporate
governance
continued
The members of the risk • the review of proposals for Group Management Board
management committee may assessing, defining and reviewing The Group Management Board
decide to appoint a chairman the risk appetite/tolerance level is entrusted with the day-to-day
by majority vote. Mr Spillmann of the group and ensuring that management of ArcelorMittal and
currently acts as chairman. appropriate risk limits/tolerance the implementation of the
levels are in place, with the aim of company’s strategy. Mr Lakshmi N
Decisions and recommendations helping to define the group’s risk Mittal, the chief executive officer,
of the risk management committee management strategy; is the chairman of the Group
are adopted by a simple majority. Management Board. On June 1,
• the review of the group’s internal
The chairman or, in the absence of 2011, Mr Louis Schorsch joined
and external audit plans to ensure
the chairman, any other member the Group Management Board.
that they include a review of the
of the risk management committee, Mr Schorsch is in charge of Flat
major risks facing the
will report to the board of directors Carbon Americas, group strategy,
ArcelorMittal group; and
at each of the latter’s quarterly CTO, global automotive and
meetings or more frequently if • making recommendations within research and development.
circumstances so require. The risk the scope of its charter to
management committee conducts ArcelorMittal’s senior The members of the Group
an annual self-evaluation of its own management and to the board of Management Board are appointed
performance and the review of its directors about senior and dismissed by the board of
2011 performance was completed management’s proposals directors. As the Group
in February 2012. concerning risk management. Management Board is not a
corporate body created by
The purpose of the risk Transition committee Luxembourg law or ArcelorMittal’s
management committee is to Following the spin-off of articles of association, it may
support the board of directors in ArcelorMittal’s stainless and exercise only the authority granted
fulfilling its corporate governance specialty steels business into to it by the board of directors.
and oversight responsibilities by Aperam on January 25, 2011, an
assisting with the monitoring and ad hoc transition committee was In implementing ArcelorMittal’s
review of the risk management formed in order to monitor the strategic direction and corporate
framework and process of implementation of the transitional policies, the chief executive officer
ArcelorMittal. Its main agreements entered into with is supported by members of
responsibilities and duties are Aperam. The transition committee ArcelorMittal’s senior management,
to assist the board of directors reviewed the terms and conditions who have substantial experience in
by making recommendations of the transitional services provided the steel and mining industries
regarding the following matters: to Aperam in the course of 2011 at worldwide: the members of the
the sole meeting of the transition Group Management Board and
• the oversight, development
committee, which took place in the members of the management
and implementation of a risk
November 2011. The transition committee.
identification and management
committee members are Mr Vaghul,
process and the review and
Mr Ross and Mr Kaden, with Management committee
reporting on the same in a
Mr Kaden acting as chairman. The The Group Management Board
consistent manner throughout
transition committee met once in is assisted by a management
the ArcelorMittal group;
2011. The transition committee will committee comprised of 24
• the review of the effectiveness of remain in place for a maximum of members. The management
the group-wide risk management three years. The decision has been committee discusses and prepares
framework, policies and process at taken that the transition committee group decisions on matters of
corporate, segment and business will be reconducted in 2012 and group-wide importance, integrates
unit levels, and the proposing of will meet at the time of the review the geographical dimension of the
improvements, with the aim of the third quarter 2012 results. group, ensures in-depth discussions
of ensuring that the group’s with ArcelorMittal’s operational and
management is supported by resources leaders, and shares
an effective risk management information about the situation
system; of the group and its markets.
• the promotion of constructive
and open exchanges on risk
identification and management
among senior management
(through the GRMC), the board of
directors, the internal assurance
department, the legal department
and other relevant departments
within the ArcelorMittal group;
76

76. Overview
Succession planning Other corporate Ethics and conflicts of interest
Our business
Succession management at governance practices Ethics and conflicts of interest are
ArcelorMittal is a systematic and ArcelorMittal is committed to applygoverned by ArcelorMittal’s code of
deliberate process for identifying best practice standards in terms ofbusiness conduct, which establishes
and preparing employees with the standards for ethical behavior
corporate governance in its dealings
potential to fill key organizational with shareholders and aims to that are to be followed by all
positions should the current ensure good corporate governance employees and directors of
incumbent’s term expire. This by applying rules on transparency, ArcelorMittal in the exercise of their
process applies to all ArcelorMittal duties. They must always act in the
quality of reporting and the balance
Sustainability
executives up to and including best interests of ArcelorMittal and
of powers. ArcelorMittal continually
the Group Management Board. monitors US, European Union and must avoid any situation in which
Succession management aims to Luxembourg legal requirements their personal interests conflict, or
ensure the continued effective and best practices in order to could conflict, with their obligations
performance of the organization make adjustments to its corporate to ArcelorMittal. Employees are
by providing for the availability of governance controls and prohibited from acquiring any
experienced and capable employees procedures when necessary. financial or other interest in any
who are prepared to assume these business or participate in any
Performance
roles as they become available. ArcelorMittal complies with the 10 activity that could deprive
Principles of Corporate Governance ArcelorMittal of the time or the
For each position, candidates are of the Luxembourg Stock Exchange attention needed to devote to the
identified based on performance in all respects except for the performance of their duties. Any
and potential and their ‘years to recommendation to separate the behavior that deviates from the
readiness’ and development needs posts of chairman of the board of code of business conduct is to
are discussed and confirmed. directors and chief executive be reported to the employee’s
Regular reviews of succession officer. The nomination of the supervisor, a member of the
Governance
plans are conducted to ensure that same person to both positions management, the head of the
they are accurate and up to date. was approved in 2007 by the legal department or the head of
Succession management is a shareholders (with the significant the internal assurance department.
necessary process to reduce risk, shareholder abstaining) of Mittal
create a pipeline of future leaders, Steel Company N.V., which was at Code of business conduct training
ensure smooth business continuity that time the parent company of is offered throughout ArcelorMittal
and improve employee motivation. the combined ArcelorMittal group. on a regular basis in the form of
Although ArcelorMittal’s Since that date, the rationale for face-to-face trainings, webinars
Financial statements
predecessor companies each combining the positions of chief and online trainings. All new
had certain succession planning executive officer and chairman of employees of ArcelorMittal must
processes in place, the process has the board of directors has become acknowledge the code of business
been reinforced, widened and made even more compelling. The board conduct in writing upon joining and
more systematic since 2006. The of directors is of the opinion that are periodically trained about the
responsibility to review and approve Mr Mittal’s strategic vision for the code of business conduct in each
succession plans and contingency steel industry in general and for location where ArcelorMittal has
plans at the highest level rests ArcelorMittal in particular in his operations. The code of business
with the board’s appointments, role as CEO is a key asset to the conduct is available in the
remuneration and corporate company, while the fact that he is ‘corporate governance – code
governance committee. fully aligned with the interests of of business conduct’ section
the company’s shareholders means of ArcelorMittal’s website at
that he is uniquely positioned to www.arcelormittal.com
lead the board of directors in his
role as chairman. The combination In addition to the code of business
of these roles was revisited at conduct, ArcelorMittal has
the annual general meeting of developed a human rights policy
shareholders of the company held and a number of other compliance
in May 2011, when Mr Lakshmi N policies in more specific areas, such
Mittal was re-elected to the board
of directors for another three year
term by a strong majority.
ArcelorMittal Annual Report 2011
77

77. Corporate
governance
continued
as anti-trust, anti-corruption, Internal assurance list of insiders as required by the
economic sanctions and insider ArcelorMittal has an internal Luxembourg market manipulation
dealing. In all these areas, assurance function that, through (abus de marché) law of May 9,
specifically targeted groups of its head of internal assurance, 2006. The IDR compliance officer
employees are required to undergo reports to the audit committee. may assist senior executives and
specialized compliance training. The function is staffed by full-time directors with the filing of notices
Furthermore, ArcelorMittal’s professional staff located within required by Luxembourg law to be
compliance program also includes a each of the principal operating filed with the Luxembourg financial
quarterly compliance certification subsidiaries and at the corporate regulator, the CSSF (Commission de
process covering all business level. Recommendations and Surveillance du Secteur Financier).
segments and entailing reporting matters relating to internal control Furthermore, the IDR compliance
to the audit committee. and processes are made by the officer has the power to conduct
internal assurance function and investigations in connection with
Process for handling complaints their implementation is regularly the application and enforcement of
on accounting matters reviewed by the audit committee. the IDR, in which any employee or
As part of the procedures of the member of senior management or
board of directors for handling Independent auditors of the board of directors is required
complaints or concerns about The appointment and determination to cooperate.
accounting, internal controls and of fees of the independent auditors
auditing issues, ArcelorMittal’s is the direct responsibility of the Selected new employees of
anti-fraud policy and code of audit committee. The audit ArcelorMittal are required to
business conduct encourage all committee is further responsible participate in a training course
employees to bring such issues to for obtaining, at least once each about the IDR upon joining
the audit committee’s attention on year, a written statement from ArcelorMittal and every three
a confidential basis. In accordance the independent auditors that years thereafter. The individuals
with ArcelorMittal’s anti-fraud and their independence has not been who must participate in the IDR
whistleblower policy, concerns impaired. The audit committee training include the members of
with regard to possible fraud or has also obtained a confirmation senior management, employees
irregularities in accounting, auditing from ArcelorMittal’s principal who work in finance, legal, sales,
or banking matters or bribery independent auditors to the effect mergers and acquisitions and other
within ArcelorMittal or any of its that none of its former employees areas that the company may
subsidiaries or other controlled are in a position within ArcelorMittal determine from time to time. In
entities may also be communicated that may impair the principal addition, ArcelorMittal’s code of
through the ‘corporate responsibility auditors’ independence. business conduct contains a section
- ethics and governance – on ‘trading in the securities of the
whistleblower’ section of the Measures to prevent insider company’ that emphasizes the
ArcelorMittal website at dealing and market manipulation prohibition to trade on the basis
www.arcelormittal.com where The board of directors of of inside information. An online
ArcelorMittal’s anti-fraud policy ArcelorMittal has adopted insider interactive training tool based on
and code of business conduct are dealing regulations (‘IDR’), which the IDR was developed in 2010
also available on the ArcelorMittal are updated when necessary and and deployed across the group in
intranet in each of the main working in relation to which training is different languages in 2011
languages used within the group. In conducted throughout the group. through ArcelorMittal’s intranet,
recent years ArcelorMittal has The IDR’s most recent version is with the aim of enhancing the
implemented local whistleblowing available on ArcelorMittal’s website, staff’s awareness of the risks
facilities, as needed. www.arcelormittal.com of sanctions applicable to
insider dealing.
During 2011, a total of 100 The IDR apply to the worldwide
complaints relating to accounting operations of ArcelorMittal. The
fraud were referred to the company secretary of ArcelorMittal
company’s internal assurance team is the IDR compliance officer and
(described below). Following review answers questions that members of
by the audit committee, none of senior management, the board of
these complaints was found to directors, or employees may have
be significant. about the IDR’s interpretation. The
IDR compliance officer maintains a
78

78. Overview
There are inherent limitations to • provide reasonable assurance
Our business
Controls and procedures
the effectiveness of any system of that unauthorized acquisition, use
Disclosure controls and procedures disclosure controls and procedures, or disposition of ArcelorMittal’s “Of all the stakeholders
We maintain disclosure controls including the possibility of human assets that could have a material we work in partnership
and procedures that are designed error and the circumvention or effect on the financial statements with, some of the most
to ensure that information required overriding of the controls and would be prevented or detected
to be disclosed in our reports in procedures. Accordingly, even on a timely basis. crucial for supporting
accordance with applicable laws effective disclosure controls and our commitment to
is properly recorded, processed, procedures can only provide Because of its inherent limitations, sustainability, are
Sustainability
summarized and reported in a reasonable assurance of achieving internal control over financial our suppliers. For this
timely manner and is accumulated their control objectives. reporting is not intended to
and communicated to management, provide absolute assurance that partnership to be
including the chief executive officer Management’s annual report a misstatement of our financial successful, we need
and chief financial officer, as on internal control over financial statements would be prevented to build trust, and
appropriate, to allow timely reporting or detected. In addition, projections that can only come
decisions regarding required Management is responsible of any evaluation of effectiveness
disclosures. ArcelorMittal’s controlsfor establishing and maintaining to future periods are subject to with transparency
Performance
and procedures are designed to adequate internal control over the risk that controls may become and good
provide reasonable assurance of financial reporting. Internal control inadequate because of changes in communications.”
achieving their objectives. over financial reporting is a process conditions, or that the degree of
designed to provide reasonable compliance with the policies or Davinder Chugh
We carried out an evaluation assurance regarding the reliability procedures may deteriorate. Member of the Group
under the supervision, and with the of financial reporting and the Management Board,
participation of our management, preparation of financial statements Management assessed the responsible for shared services
including our chief executive officer for external purposes in accordance effectiveness of internal control
Governance
and chief financial officer, of the with generally accepted accounting over financial reporting as of
effectiveness of the design and principles. December 31, 2011 based upon
operation of our disclosure controls the framework in ‘Internal Control
and procedures as of December 31, Our internal control over financial – Integrated Framework’ issued
2011. Based on this evaluation, our reporting includes those policies by the Committee of Sponsoring
chief executive officer and chief and procedures that:
Organizations of the Treadway
financial officer concluded that our • pertain to the maintenance of Commission (‘COSO’). Based on
disclosure controls and procedures records that, in reasonable detail, this assessment, management
Financial statements
were effective as of December 31, accurately and fairly reflect the concluded that ArcelorMittal’s
2011 and provided reasonable transactions and dispositions of internal control over financial
assurance that information required the assets of ArcelorMittal; reporting was effective as of
to be disclosed by us in the reports December 31, 2011.
required to be published by • provide reasonable assurance
ArcelorMittal is (1) recorded, that transactions are recorded, as
processed, summarized and necessary, to permit preparation
reported in a timely manner in of financial statements in
accordance with applicable laws, and accordance with IFRS;
(2) accumulated and communicated • provide reasonable assurance
to our management, including our that receipts and expenditures
chief executive officer and our chief of ArcelorMittal are made in
financial officer, as appropriate, to accordance with authorizations
allow timely decisions regarding of ArcelorMittal’s management
required disclosures. and directors; and ArcelorMittal Annual Report 2011
79

79. Corporate
governance
continued
Compensation
Board of directors compensation
The appointments, remuneration and corporate governance committee of ArcelorMittal’s board of directors
prepares proposals on the remuneration to be paid annually to the members of the board of directors.
The total annual compensation of the members of ArcelorMittal’s board of directors paid in 2010 and 2011
was as follows:
2010 2011 2010 2011
Short-term Short-term Long-term Long-term
(Amounts in $ thousands except option performance performance number number
information) 20101 20111 related related of options of RSUs
Lakshmi N Mittal $1,651 $1,7397 $692 $2,074 56,500 12,500
Vanisha Mittal Bhatia 172 174 – – – –
Narayanan Vaghul 219 220 – – – –
Suzanne P Nimocks2 – 179 – – – –
Wilbur L Ross, Jr 191 194 – – – –
Lewis B Kaden 264 264 – – – –
François Pinault3 159 11 – – – –
José Ramón Álvarez Rendueles
Medina4 71 – – – – –
Bruno Lafont5 – 126 – – – –
John Castegnaro6 63 – – – – –
Antoine Spillmann 212 213 – – – –
HRH Prince Guillaume
de Luxembourg 180 186 – – – –
Jeannot Krecké 184 187 – – – –
Total 3,366 3,493 692 2,074 56,500 12,500
1 Compensation with respect to 2010 (paid after shareholder 3 Mr Pinault resigned effective as of January 25, 2011.
approval at the annual general meeting held on May 10, 2011) 4 The term of Mr Álvarez Rendueles Medina ended on May 11, 2010.
and attendance fees for 2010 amounting to approximately 5 Mr Lafont was elected to ArcelorMittal’s board of directors effective
$0.3 million (paid in February 2011) are included in the 2010 May 10, 2011.
column. Compensation with respect to 2011 will be paid in 6 The term of Mr Castegnaro ended on May 11, 2010.
2012 and is included in the 2011 column. 7 These sums include attendance fees of $13,000 paid in relation to
2 Ms Nimocks was elected to ArcelorMittal’s board of directors 2010. Payment of attendance fees has been suppressed in relation
effective January 25, 2011. to 2011. The base salary of the CEO has been increased by 3%
effective from April 2011.
80

80. Overview
As of December 31, 2010 and 2011, ArcelorMittal did not have any outstanding loans or advances to members of its board of directors and,
Our business
as of December 31, 2011, ArcelorMittal had not given any guarantees for the benefit of any member of its board of directors. None of the
members of the board of directors, including the executive director, benefit from an ArcelorMittal pension plan.
The following table provides a summary of the Restricted Share Units (RSU) and the options outstanding and the exercise price of the
options granted to ArcelorMittal’s board of directors as of December 31, 2011 (in 2003 and 2004, no options were granted to members
of ArcelorMittal’s board of directors; in 2011, RSUs were granted but no options):
Sustainability
Weighted
Options granted in RSUs average
granted Options exercise price
2002 2005 2006 2007 2008 2009 2010 2011 total1 of options1
Lakshmi N Mittal 80,000 100,000 100,000 60,000 60,000 60,000 56,500 12,5001 516,500 $35.62
Vanisha Mittal Bhatia – – – – – – – – – –
Narayanan Vaghul – – – – – – – – – –
Suzanne P Nimocks2 – – – – – – – – – –
Wilbur L Ross – – – – – – – – – –
Performance
Lewis B Kaden – – – – – – – – – –
François Pinault3 – – – – – – – – – –
Bruno Lafont4
Antoine Spillmann – – – – – – – – – –
HRH Prince Guillaume
de Luxembourg – – – – – – – – – –
Jeannot Krecké – – – – – – – – – –
Total 80,000 100,000 100,000 60,000 60,000 60,000 56,500 12,5001 516,500 –
Governance
Exercise price5 $2.15 $27.31 $32.07 $61.09 $78.44 $36.38 $30.66 – – $35.62
Term (in years) 10 10 10 10 10 10 10 – – –
Apr. 5, Aug. 23, Sep. 1, Aug. 2, Aug. 5, Aug. 4, Aug. 3,
Expiration date 2012 2015 2016 2017 2018 2019 2020 – – –
1 The RSUs granted are not included in the total or in the weighted average exercise price of 4 Mr Lafont was elected to ArcelorMittal’s board of directors effective May 10, 2011.
options. The corresponding treasury shares will be transferred to the participant on 5 Due to the spin-off of Aperam on January 25, 2011, the strike price of outstanding options
September 29, 2014. was reduced by 5% in line with the spin-off ratio. The table above reflects this adjustment.
2 Ms Nimocks was elected to ArcelorMittal’s board of directors effective January 25, 2011.
Financial statements
3 Mr Pinault resigned effective as of January 25, 2011.
Senior management During 2011, approximately $1.5 Compensation philosophy Compensation framework
million was accrued by ArcelorMittal ArcelorMittal’s compensation The appointments, remuneration
compensation to provide pension benefits to philosophy for its senior managers and corporate governance
The total compensation paid senior management. No loans or is based on the following principles: committee of ArcelorMittal’s board
in 2011 to members of advances to ArcelorMittal’s senior of directors draws up proposals
• provide total compensation
ArcelorMittal’s senior management management were made during annually on senior management
competitive with executive
(including Mr Lakshmi N Mittal in 2011, and no such loans or compensation for the board of
compensation levels of a peer
his capacity as CEO) was $16.2 advances were outstanding as directors’ consideration. Such
group composed of a selection
million in base salary (including of December 31, 2011. proposals relating to compensation
of industrial companies of a
certain allowances paid in cash, such comprise the following elements:
similar size and scope;
as allowances relating to car, petrol, Compensation policy • fixed annual salary;
lunch and financial services) and • encourage and reward
$17.2 million in short-term Scope performance that will lead • short-term incentives:
performance-related variable pay ArcelorMittal’s compensation to long-term enhancement performance bonus; and
consisting of a bonus linked to philosophy and framework apply of shareholder value;
to the following group of senior • long-term incentives: stock
2010 results. The bonus linked to • promote internal pay equity options (until May 2011),
2010 results was paid fully in cash, managers:
and provide ‘market’ median restricted share units and
unlike the bonus linked to the 2009 • the chief executive officer; (determined by reference to its performance share units
results which was paid partly in identified peer group) base pay (after May 2011).
2009 and partly in 2010, and • the seven members of the Group
Management Board; and levels for ArcelorMittal’s senior
partly in cash and partly in managers with the possibility Fixed annual salary
share-based compensation. • the ten executive vice presidents. to move up to the third quartile Base salary levels are reviewed
ArcelorMittal Annual Report 2011
The base salaries were increased of the market base pay levels annually to ensure that ArcelorMittal
by an average percentage of 2.7% The compensation philosophy and depending on performance over remains competitive with market
(promotions not included) effective governing principles also apply, with time; and median base pay levels.
April 2011. certain limitations, to a wider group
of employees that includes vice • promote internal pay equity and
presidents, general managers and target total direct compensation
managers. (base pay, bonus, and long-term
incentives) levels for senior
managers at the third quartile
percentile of the market.
81

81. Corporate
governance
continued
Short-term incentives: • health and safety performance For executive vice presidents
performance bonus at group level: 20%. in charge of shared services or
ArcelorMittal has a short-term corporate departments, the 2011
incentive plan in place which Ebitda operating as a ‘circuit performance bonus formula is
consists of a performance bonus breaker’ for financial measures based on:
plan. The performance of the means that the 80% threshold
• Ebitda at group level: 30%
ArcelorMittal group as a whole, described above must be met for
(acts as circuit breaker for
the performance of the relevant Ebitda in order to trigger any bonus
financial performance measures,
business units, the achievement payment with respect to the Ebitda
as explained above);
of objectives specific to the and OFCF performance measures.
department, and the individual • OFCF at group level: 20%;
employee’s overall performance For the chief executive officer,
• health and safety performance
and potential determine the the performance bonus at 100%
at group level: 10% on the
outcome of the bonus calculation achievement of the business plan
average group lost time injury
for each employee. is equal to 100% of base salary.
frequency rate;
For the members of the Group
The calculation of ArcelorMittal’s Management Board and the • budget of the department:
2011 performance bonus is aligned executive vice presidents, the 20%; and
with ArcelorMittal’s strategic target is set at 80% and 60%
• quantified specific measures: 20%.
objectives of improving health and of base salary, respectively, with
safety performance and our overall a few exceptions for individuals
The different performance
competitiveness: whose employment agreements
measures are combined through
provide for a higher percentage
• no performance bonus will be a cumulative system: each measure
for historical reasons.
triggered if the achievement level is calculated separately and is added
of the performance measures is up for the performance bonus
For executive vice presidents
less than the threshold of 80%; calculation.
outside of the corporate
• achievement of 100% of the departments and shared services,
The individual performance and
performance measure yields the 2011 bonus formula contains
potential assessment ratings define
100% of the performance bonus the same measures as described
the individual bonus multiplier that
pay-out; and above, with more weight attributed
will be applied to the performance
to these measures at the level of
• achievement of more than bonus calculated based on actual
their respective business areas:
100% and up to a ceiling of 120% performance against the
of the performance measures • Ebitda at group level: 20%; performance measures. Those
generates a higher performance individuals who consistently
• Ebitda at business unit level:
bonus pay-out, except as perform at expected levels will
30% (this acts as circuit breaker
explained below. have an individual multiplier of 1.
with respect to the financial
For outstanding performers, an
performance measures, as
The performance bonus for individual multiplier of up to 1.3
explained above);
each individual is expressed as a may cause the performance bonus
percentage of his or her annual base • OFCF at business unit level pay-out to be higher than 150% of
salary. Performance bonus pay-outs (which is a function of Ebitda, the target bonus, up to 195% of
may range from 50% of the target capex and operating working target bonus being the absolute
bonus, for achievement of capital (‘OWC’); the OWC maximum. Similarly, a reduction
performance measures at the average over the full year is factor will be applied for those at
threshold (80%), to up to 150% taken into account): 30%; and the lower end. No bonus pay-out is
for an achievement at or in excess a possible outcome for substandard
• health and safety performance at
of the ceiling of 120%. Between performance.
business unit level: 20%.
the 80% threshold and the 120%
ceiling, the performance bonus The principles of the performance
For the ArcelorMittal Distribution
is calculated on a proportional, bonus plan, with different weight
Services (‘AMDS’) and Mining
straight-line basis. for performance measures and
segments, the above mentioned
different levels of target bonus,
measures have been adapted to
For the chief executive officer and are applicable to about 2,000
the specific characteristics of these
the other members of the Group employees worldwide.
businesses. For AMDS, the Ebitda
Management Board, the 2011
at business level parameter (30%
bonus formula is based on:
weighting) is replaced by return
• Ebitda at group level: 60% on capital employed (‘ROCE’).
(this acts as ‘circuit breaker’ with Mining, OFCF and Ebitda at
respect to group-level financial business level are reduced to a
performance measures, as weighting of 15% each and an
explained below); additional parameter is given a
weighting of 30%: the Mining
• operating free cash flow (‘OFCF’)
total shipment volumes for iron
at group level: 20%; and
ore and coal.
82

82. Overview
Other benefits For the period from the May employment with the company
Our business
In addition to the compensation 2011 annual general shareholders’ and the fulfillment of targets
elements described above, meeting to the annual general related to the following
other benefits may be provided meeting of shareholders to be performance measures: return
to members of the Group held in May 2012, a maximum of on capital employed (ROCE) and
Management Board, the 2,500,000 RSUs may be allocated total cost of employment (in $
management committee and to eligible employees under the RSU a tonne) for the steel business
in certain cases other employees. plan. The RSU plan targets the 500 (TCOE) and the Mining volume
These other benefits can include to 800 most senior managers plan 2011 for the Mining segment.
Sustainability
insurance, housing (in cases across the ArcelorMittal group, Each performance measure has a
of international mobility), car including the chief executive officer, weighting of 50%. In case the
allowances, and tax assistance the other Group Management level of achievement of both
for employees on international Board members and the executive performance targets together
assignments. vice presidents. In September is below 80%, there is no
2011, a total of 1,303,515 shares vesting, and the rights are
Long-term incentives: under the RSU plan were granted automatically forfeited.
equity based incentives to a total of 772 employees.
Performance
The allocation of RSUs and PSUs
Share unit plan: RSUs and PSUs
The PSU plan to members of the Group
The annual shareholders’ meeting
The PSU plan’s main objective is Management Board and the
on May 10, 2011 approved a new
to be an effective performance- management committee under
equity-based incentive plan to
enhancing scheme based on the the RSU plan and the PSU plan is
replace the global stock option plan.
employee’s contribution to the reviewed by the appointments,
The new plan comprises a restricted
eligible achievement of the remuneration and corporate
share unit plan (‘RSU plan’) and a
company’s strategy. Awards governance committee, comprised
Governance
performance share unit plan (‘PSU
under the PSU plan are subject of four independent directors,
plan’) designed to incentivize the
to the fulfillment of cumulative which makes a recommendation
targeted employees, to improve
performance criteria over a to the full board of directors. The
the long-term performance of
three-year period from the date appointments, remuneration and
the company and to retain key
of the PSU grant. The employees corporate governance committee
employees. Both the RSU plan
eligible to participate in the PSU also reviews the proposed grants
and the PSU plan are intended to
plan are a sub-set of the group of RSUs and PSUs to eligible
promote the alignment of interests
of employees eligible to participate employees other than the members
Financial statements
between the company’s
in the RSU plan. The target group of the Group Management Board
shareholders and eligible employees
for PSU grants is primarily the and the management committee
by allowing them to participate in
chief executive officer, the and the principles governing their
the success of the company.
other members of the Group proposed allocation. The committee
Management Board, the also decides the criteria for
The maximum number of restricted
executive vice presidents granting PSUs and makes its
share units (each, an ‘RSU’) and
and the vice presidents. recommendation to the board of
performance share units (each, a
directors. These criteria are based
‘PSU’) available for grant during any
For the period from the May 2011 on the principle of rewarding
given year is subject to the prior
annual general shareholders’ performance upon the achievement
approval of the company’s
meeting to the annual general of clear and measurable metrics for
shareholders at the annual
meeting of shareholders to be held shareholder value creation.
general meeting.
in May 2012, a maximum of
1,000,000 PSUs may be allocated
The RSU plan
to eligible employees under the
The aim of the RSU plan is to
PSU plan.
provide a retention incentive to
eligible employees. It is subject
The allocation of PSUs is expected
to ‘cliff vesting’ after three years,
to take place in March 2012.
with 100% of the grant vesting on
the third anniversary of the grant
PSUs will vest three years after
contingent upon the continued
their date of grant subject to the
active employment of the eligible
eligible employee’s continued
employee within the ArcelorMittal
ArcelorMittal Annual Report 2011
group. The RSUs are an integral part
of the company’s remuneration
framework in which it serves the
specific objective of medium-term
and long-term retention.
83

83. Corporate
governance
continued
The global stock option plan first three anniversaries of the The fair values for options and
Prior to the adoption of the grant date, or, in total, upon theother share-based compensation
share unit plan described above, death, disability or retirement are recorded as expenses in the
ArcelorMittal’s equity based of the participant. consolidated statements of
incentive plan took the form of operations over the relevant
a stock option plan called the With respect to the spin-off vesting or service periods, adjusted
global stock option plan. of Aperam, an addendum to the to reflect actual and expected levels
ArcelorMittal global stock option of vesting. The fair value of each
Under the terms of the plan 2009-2018 was adopted to option grant to purchase
ArcelorMittal global stock option reduce by 5% the exercise prices of ArcelorMittal common shares is
plan 2009-2018 (which replaced existing stock options. This change estimated on the date of grant
the ArcelorMittal shares plan that is reflected in the information using the Black-Scholes-Merton
expired in 2009), ArcelorMittal may given below. option pricing model with the
grant options to purchase common weighted average assumptions
stock to senior management of On August 3, 2010, ArcelorMittal (based on year of grant and
ArcelorMittal and its associates granted 5,864,300 options under recalculated at the spin-off date
for up to 100,000,000 shares of the ArcelorMittal global stock of the stainless steel business)
common stock. The exercise price option plan 2009-2018 to a group shown below.
of each option equals not less of key employees at an exercise
than the fair market value of price of $32.27 per share. The
ArcelorMittal stock on the grant options expire on August 3, 2020.
date, with a maximum term of No options were granted in 2011
10 years. Options are granted at (RSUs were granted; see ‘restricted
the discretion of ArcelorMittal’s share units (RSUs) and performance
appointments, remuneration and share units (PSUs)’ above).
corporate governance committee,
or its delegate. The options vest
either ratably upon each of the
Initial exercise prices New exercise prices
Year of grant (per option) (per option)
August 2008 $82.57 $78.44
December 2007 74.54 70.81
August 2007 64.30 61.09
June 2006 38.99 37.03
August 2009 38.30 36.38
September 2006 33.76 32.07
August 2010 32.27 30.66
August 2005 28.75 27.31
December 2008 23.75 22.56
November 2008 22.25 21.14
April 2002 2.26 2.15
2010
Exercise price $30.66
Dividend yield 2.02%
Expected annualized volatility 50%
Discount rate-bond equivalent yield 3.21%
Weighted average share price $30.66
Expected life in years 5.75
Fair value per option $17.24
84

84. Overview
The expected life of the options of the spin-off of Aperam, the Option activity with respect
Our business
is estimated by observing general fair values of the stock options to ArcelorMittalShares and
option holder behavior and actual outstanding have been recalculated ArcelorMittal global stock option
historical lives of ArcelorMittal with the modified inputs of the plan 2009-2018 is summarized
stock option plans. In addition, the Black-Scholes-Merton option below as of and for each of the
expected annualized volatility has pricing model, including the years ended December 31, 2009,
been set by reference to the implied weighted average share price, 2010 and 2011.
volatility of options available on exercise price, expected volatility,
ArcelorMittal shares in the open expected life, expected dividends, For RSUs, the fair value determined
Sustainability
market, as well as historical the risk-free interest rate and an at the grant date is expensed on
patterns of volatility. additional expense of $11 million a straight line method over the
has been recognized in the year vesting period and adjusted for the
The compensation expense ended December 31, 2011 for effect of non-market-based
recognized for stock option plans the current and past periods. vesting conditions. In 2011, the
was $176 million, $133 million and compensation expense recognized
$73 million for each of the years for the RSUs granted was $2 million.
ended December 31, 2009, 2010,
Performance
and 2011, respectively. At the date
Governance
Financial statements
Weighted
Range of average
Number of exercise prices exercise price
options (per option) (per option)
Outstanding, December 31, 2009 24,047,380 $2.26–82.57 $55.22
Granted 5,864,300 32.27 32.27
Exercised (371,200) 2.26–33.76 21.27
Forfeited (223,075) 28.75–82.57 53.42
Expired (644,431) 2.26–82.57 49.55
Outstanding, December 31, 2010 28,672,974 2.26–82.57 50.95
Exercised (226,005) 2.15–32.07 27.57
Forfeited (114,510) 27.31–78.44 40.26
Expired (662,237) 15.75–78.44 57.07
Outstanding, December 31, 2011 27,670,222 2.15–78.44 48.35
Exercisable, December 31, 2011 21,946,104 2.15–78.44 52.47
Exercisable, December 31, 2010 16,943,555 2.26–82.57 56.59
Exercisable, December 31, 2009 11,777,703 2.26–82.57 52.46
The following table summarizes certain information regarding total stock options of the company outstanding
as of December 31, 2011:
Options outstanding
Weighted Options
average exercisable
Exercise prices Number of contractual life (number of
(per option) options (in years) options) Maturity
ArcelorMittal Annual Report 2011
78.44 6,468,150 6.60 6,468,150 August 5, 2018
70.81 13,000 5.95 13,000 December 11, 2017
61.09 4,753,137 5.59 4,753,137 August 2, 2017
37.03 1,268,609 1.50 1,268,609 June 30, 2013
36.38 5,889,296 7.60 3,988,364 August 4, 2019
32.07 2,040,380 4.67 2,040,380 September 1, 2016
30.66 5,772,634 8.60 1,949,448 August 3, 2020
27.31 1,244,936 3.65 1,244,936 August 23, 2015
22.56 32,000 6.96 32,000 December 15, 2018
21.14 20,585 6.87 20,585 November 10, 2018
2.15 167,495 0.26 167,495 April 5, 2012
$2.15–78.44 27,670,222 6.51 21,946,104
85

85. Corporate
governance
continued
Share ownership RSUs, the corresponding shares will Pursuant to the ESPP 2010, eligible
be transferred to the beneficiaries employees could apply to purchase
As of December 31, 2011, on September 29, 2014. a number of shares not exceeding
the aggregate beneficial share that number of whole shares equal
ownership of ArcelorMittal In 2003 and 2004, no options to the lower of 200 shares and the
directors and senior management were granted to members of Mittal number of whole shares that may
(26 individuals) totaled 2,438,436 Steel’s senior management. be purchased for $15,000, rounded
ArcelorMittal shares (excluding down to the nearest whole number
shares owned by ArcelorMittal’s In accordance with the Luxembourg of shares.
significant shareholder and including Stock Exchange’s 10 Principles of
options to acquire 1,840,202 Corporate Governance, non- The purchase price was equal to
ArcelorMittal common shares that executive members of the average of the opening and the
are exercisable within 60 days of ArcelorMittal’s board of directors closing prices of the ArcelorMittal
December 31, 2011), representing do not receive share options, share trading on the NYSE on
0.16% of the total issued share RSUs or PSUs. the exchange day immediately
capital of ArcelorMittal. Excluding preceding the opening of the
options to acquire ArcelorMittal Employee share purchase plan subscription period, which is
common shares, these 26 (ESPP) referred to as the ‘reference price’,
individuals beneficially own The annual general shareholders’ less a discount equal to:
598,234 ArcelorMittal common meeting held on May 11, 2010
shares. Other than the significant • 15% of the reference price for
adopted an employee share
shareholder, each director and a purchase order not exceeding
purchase plan (the ‘ESPP 2010’)
member of senior management the lower of 100 shares and the
as part of a global employee
beneficially owns less than 1% number of shares (rounded down
engagement and participation
of ArcelorMittal’s shares. to the nearest whole number)
policy. As with the previous
corresponding to an investment
employee share purchase plans
In 2009, the percentage of total of $7,500 (the first cap); and
implemented in 2008 and 2009,
common shares (including treasury thereafter,
the ESPP 2010’s goal was to
stock) in the possession of the strengthen the link between the • 10% of the reference price
significant shareholder decreased group and its employees and to for any additional acquisition of
from 43.05% to 40.84% as a result align the interests of ArcelorMittal shares up to a number of shares
of an offering of new shares of employees and shareholders. The (including those in the first cap)
which the significant shareholder main features of the plan, which not exceeding the lower of 200
acquired 10%. The ownership of was implemented in November shares and the number of shares
the significant shareholder increased 2010, are outlined below: (rounded down to the nearest
in 2010, and was 40.87% as of whole number) corresponding
December 31, 2010. The ESPP 2010 was offered to an investment of $15,000
to 183,560 employees in 21 (the second cap).
In 2010, the number of jurisdictions. ArcelorMittal offered
ArcelorMittal options granted to a maximum total number of All shares purchased under the ESPP
directors and senior management 2,500,000 shares (0.16% of the 2008, 2009 and 2010 are held
(including the significant current issued shares on a fully in custody for the benefit of the
shareholder) was 643,900 at an diluted basis). A total of 164,171 employees in global accounts with
exercise price of $30.66. The shares were subscribed, 1,500 of BNP Paribas Securities Services,
options vest either ratably upon which were subscribed by members except for shares purchased by
each of the first three anniversaries of the Group Management Board Canadian and US employees, which
of the grant date (or in total upon and the management committee are held in custody in one global
the death, disability or retirement of the company. The subscription account with Computershare, which
of the grantee) and expire ten years price was $34.62 before discounts. recently acquired the shareowner
after the grant date. In 2011, the The subscription period ran from services business of The Bank of
number of ArcelorMittal RSUs November 16, 2010 until New York Mellon.
granted to directors and senior November 25, 2010 and was
management (including the settled with treasury shares on
significant shareholder) was January 10, 2011.
132,500; upon vesting of the
86

86. Overview
Shares purchased under the plan During this period, and subject to that will be exclusively controlled
Our business
are subject to a three-year lock-up the early exit events, dividends by Aperam, except in certain
period as from the settlement date, paid on shares are held for the jurisdictions where termination
except for the following early exit account of the employee and of employment is not an early
events: permanent disability of accrue interest. Employee exit event; and
the employee, termination of the shareholders are entitled to any
• the Aperam shares to be
employee’s employment or death dividends paid by ArcelorMittal
received by ESPP participants
of the employee. At the end of after the settlement date and they
will be blocked in line with the
this lock-up period, the employees are entitled to vote their shares.
Sustainability
lock-up period applicable to the
will have a choice either to sell their
ArcelorMittal shares in relation
shares (subject to compliance with With respect to the spin-off
to which the Aperam shares are
ArcelorMittal’s insider dealing of ArcelorMittal’s stainless and
allocated based on a ratio of
regulations) or keep their shares specialty steels business, an
one Aperam share for 20
and have them delivered to their addendum to the charter of the
ArcelorMittal shares.
personal securities account, or 2008, 2009 and 2010 ESPPs
make no election, in which case was adopted providing, among
shares will be automatically sold. other measures, that:
Performance
Shares may be sold or released
• the spin-off shall be deemed
within the lock-up period in the
an early exit event for the
case of early exit events.
participants who will be
employees of one of the entities
Governance
The following table summarizes outstanding share options and RSUs, as of December 31, 2011, granted to the members of senior management
Financial statements
of ArcelorMittal (or its predecessor company Mittal Steel, prior to 2007).
Year of grant RSU year of Average weighted
2002 2005 2006 2007 2008 2009 2010 grant 2011 Total1,2 exercise price2
Senior managers
(including
significant
shareholder) 105,000 247,180 333,372 471,000 529,000 588,000 568,450 132,500 2,984,717
Exercise price3 $2.15 $27.31 $32.07 $61.09 $78.44 $36.38 $30.66 – – $44.08
Term (in years) 10 10 10 10 10 10 10 – – –
Apr. 5, Aug. 23, Sep. 1, Aug. 2, Aug. 5, Aug. 4, Aug. 3,
Expiration date 2012 2015 2016 2017 2018 2019 2020 – – –
1 The 110,715 options granted by Arcelor in 2006 for an exercise price of €28.62 2 The RSUs granted are not included in the total or in the weighted average exercise price of options.
(at a conversion rate of 1 euro = 1.2939 US dollars) and 32,000 options granted on 3 Due to the spin-off of Aperam on January 25, 2011, the exercise price of outstanding options
December 15, 2008 at an exercise price of $22.56 have been included in the total was reduced by 5% in line with the spin-off ratio. The table above reflects this adjustment.
number of options and the average weighted exercise price.
ArcelorMittal Annual Report 2011
87

87. Major shareholders
and related party
transactions
Major shareholders The following table sets forth ArcelorMittal by BNP Paribas
information as of December 31, Securities Services in Amsterdam,
As of December 31, 2011, 2011 with respect to the beneficial or directly on ArcelorMittal’s
the authorized share ownership of ArcelorMittal Luxembourg shareholder
common shares by each person register without being held
capital of ArcelorMittal who is known to be the beneficial on ArcelorMittal’s local Dutch
consisted of 1,617,000,000 owner of more than 5% of the shareholder register. Under
common shares, without shares and all directors and senior Luxembourg law, the ownership of
nominal value. At management as a group. registered shares is evidenced by
the inscription of the name of the
December 31, 2011, The ArcelorMittal common shares shareholder, the number of shares
1,560,914,610 common may be held in registered form only. held by such shareholder and the
shares, compared to Registered shares may consist of (a) amount paid up on each share in
1,560,914,610 common shares traded on the NYSE, or New the shareholder register of
York Shares, which are registered in ArcelorMittal.
shares at December 31, a register kept by or on behalf of
2010, were issued and ArcelorMittal by its New York At December 31, 2011, there
1,548,951,866 common transfer agent, (b) shares traded on were 2,653 shareholders other
shares, compared to Euronext Amsterdam by NYSE than the significant shareholder,
Euronext, Euronext Paris by NYSE Mr Mittal and Mrs Mittal holding
1,548,561,690 common Euronext, the regulated market of an aggregate of 52,994,104
shares at December 31, the Luxembourg Stock Exchange ArcelorMittal common shares
2010, were outstanding. and the Spanish Stock Exchanges registered in ArcelorMittal’s
(Madrid, Bilbao, Valencia and shareholder register, representing
Barcelona), which are registered approximately 3% of the
in ArcelorMittal’s shareholders’ common shares issued
register, or (c) ArcelorMittal (including treasury shares).
European Register Shares, which
are registered in a local shareholder
register kept by or on behalf of
ArcelorMittal common shares1
Number %
Significant shareholder2 638,063,696 40.88
Treasury stock3 9,663,709 0.62
Other public shareholders 913,187,205 58.50
Total 1,560,914,610 100.00
Of which: directors and senior management4,5 2,438,436 0.16
1 For purposes of this table, a person or group of persons is deemed to Lumen Investments S.à r.l. Accordingly, Mr Mittal is the beneficial
have beneficial ownership of any ArcelorMittal common shares as of owner of 638,018,696 ArcelorMittal common shares, Mrs Mittal
a given date on which such person or group of persons has the right is the beneficial owner of 637,383,263 common shares and the
to acquire such shares within 60 days after December 31, 2011 significant shareholder is the beneficial owner of 638,063,696
upon exercise of vested portions of stock options. The first third of common shares. Excluding options, Mr Lakshmi N Mittal and
the stock options granted on August 3, 2010 vested on August 3, Mrs Usha Mittal together beneficially own 637,604,863
2011 and the first and second third of the stock options granted on ArcelorMittal common shares.
August 4, 2009 vested on August 4, 2010 and August 4, 2011 3 Represents ArcelorMittal common shares repurchased pursuant to
respectively; all stock options of the previous grants have vested. share repurchase programs in prior years, fractional shares returned
2 Mr Lakshmi N Mittal and his wife, Mrs Usha Mittal, have direct in various transactions, and the use of treasury shares in various
ownership of ArcelorMittal common shares and indirect ownership transactions in prior years; excludes (1) 164,171 shares used to
of holding companies that own ArcelorMittal common shares. settle purchases under the ESPP 2010 offering that closed on
Nuavam Investments S.à r.l., a limited liability company organized January 10, 2011, (2) 226,005 options that were exercised during
under the laws of Luxembourg, is the owner of 112,338,263 the 12 months ended December 31, 2011, (3) 1,840,202 stock
ArcelorMittal common shares. Lumen Investments S.à r.l., a limited options that can be exercised by directors and senior management
liability company organized under the laws of Luxembourg, is the (other than Mr Mittal) and (4) 458,833 stock options that can be
owner of 525,000,000 ArcelorMittal common shares. Mr Mittal is exercised by Mr Mittal, in each case within 60 days of December 31,
the direct owner of 221,600 ArcelorMittal common shares and 2011. Holders of these stock options are deemed to beneficially
holds options to acquire an additional 516,500 ArcelorMittal own ArcelorMittal common shares for the purposes of this table
common shares, of which 458,833 are, for the purposes of this due to the fact that such options are exercisable within 60 days.
table, deemed to be beneficially owned by Mr Mittal due to the fact 4 Includes shares beneficially owned by directors and members of
that those options are exercisable within 60 days. Mrs Mittal is the senior management; excludes shares beneficially owned by
direct owner of 45,000 ArcelorMittal common shares. Mr Mittal, Mr Mittal.
Mrs Mittal and the significant shareholder share indirect beneficial 5 These 2,438,436 ArcelorMittal common shares are included in
ownership of 100% of each of Nuavam Investments S.à r.l. and shares owned by the public shareholders indicated above.
88

88. Overview
At December 31, 2011, there Memorandum of understanding Standstill Once the significant shareholder
Our business
were 188 US shareholders holding On June 25, 2006, Mittal Steel, the The significant shareholder agreed exceeds the threshold mentioned in
an aggregate of 86,758,078 significant shareholder and Arcelor not to acquire, directly or indirectly, the first paragraph of this ‘standstill’
New York Shares, representing signed a binding Memorandum of ownership or control of an amount subsection or the 45% limit, as the
approximately 5.56% of the Understanding (‘MoU’) to combine of shares in the capital stock of the case may be, as a consequence of
common shares issued (including Mittal Steel and Arcelor in order company exceeding the percentage any corporate event set forth in
treasury shares). ArcelorMittal’s to create the world’s leading steel of shares in the company that it will (1) or (2) above, it shall not be
knowledge of the number of company. In April 2008, the board own or control following completion permitted to increase the
New York Shares held by US of directors approved resolutions of the offer (as defined in the MoU) percentage of shares it owns or
Sustainability
holders is based solely on the amending certain provisions of for Arcelor and any subsequent offer controls in any way except as a
records of its New York transfer the MoU in order to adapt it to or compulsory buy-out, except with result of subsequent occurrences
agent regarding registered the company’s needs in the the prior written consent of a of the corporate events described
ArcelorMittal common shares. post-merger and post- majority of the independent in (1) or (2) above, or with the prior
integration phase. directors on the company’s board written consent of a majority of
At December 31, 2011, there of directors. Any shares acquired in the independent directors on the
were 783,824,165 ArcelorMittal On the basis of the binding MoU, violation of this restriction will be company’s board of directors.
common shares being held through Arcelor’s board of directors deprived of voting rights and shall
Performance
the Euroclear/Iberclear clearing recommended Mittal Steel’s offer be promptly sold by the significant If subsequently the significant
system in the Netherlands, France, for Arcelor and the parties to the shareholder. Notwithstanding the shareholder sells down below
Luxembourg and Spain. The MoU agreed to certain corporate above, if (and whenever) the the threshold mentioned in the
spin-off of ArcelorMittal’s stainless governance and other matters significant shareholder holds, first paragraph of this ‘standstill’
and specialty steels business into relating to the combined directly and indirectly, less than 45% subsection or the 45% limit, as
Aperam effective January 25, ArcelorMittal group. Certain of the then-issued company shares, the case may be, it shall not be
2011 had no impact on the number provisions of the MoU relating the significant shareholder may permitted to exceed the threshold
of ArcelorMittal’s issued shares, to corporate governance were purchase (in the open market or mentioned in the first paragraph
Governance
which remains at 1,560,914,610. incorporated into the articles of otherwise) company shares up to of this ‘standstill’ subsection or
association of ArcelorMittal at the such 45% limit. In addition, the the 45% limit, as the case may
Related party transactions extraordinary general meeting of the significant shareholder is also be, other than as a result of any
ArcelorMittal engages in shareholders on November 5, 2007. permitted to own and vote shares in corporate event set out in (1)
certain commercial and financial excess of the threshold mentioned or (2) above or with the prior
transactions with related parties, Certain additional provisions of the in the immediately preceding written consent of a majority
all of which are affiliates and joint MoU expired effective August 1, paragraph or the 45% limit of the independent directors.
ventures of ArcelorMittal. Please 2009. ArcelorMittal’s corporate mentioned above, if such ownership
Financial statements
refer to Note 14 of ArcelorMittal’s governance rules will continue to results from (1) subscription for Finally, the significant shareholder
consolidated financial statements. reflect, subject to those provisions shares or rights in proportion to is permitted to own and vote
of the MoU that have been its existing shareholding in the shares in excess of the threshold
Shareholder’s agreement incorporated into the articles of company where other shareholders mentioned in the first paragraph
Mr Lakshmi N Mittal, a company association, the best standards have not exercised the entirety of this ‘standstill’ subsection or
controlled by the significant of corporate governance for of their rights or (2) any passive the 45% limit mentioned above if
shareholder and ArcelorMittal comparable companies and to crossing of this threshold resulting it acquires the excess shares in the
are parties to a shareholder and conform with the corporate from a reduction of the number of context of a takeover bid by a third
registration rights agreement governance aspects of the NYSE company shares (e.g. through party and (1) a majority of the
(the ‘shareholder’s agreement’) listing standards applicable to self-tender offers or share independent directors of the
dated August 13, 1997. Pursuant non-US companies and Ten buy-backs) if, in respect of (2) company’s board of directors
to the shareholder’s agreement and Principles of Corporate Governance only, the decisions to implement consents in writing to such
subject to the terms and conditions of the Luxembourg Stock Exchange. such measures were taken at a acquisition by the significant
thereof, ArcelorMittal shall, upon shareholders’ meeting in which shareholder or (2) the significant
the request of certain holders of The following summarizes the main the significant shareholder did not shareholder acquires such shares
restricted ArcelorMittal shares, use provisions of the MoU that remain vote or by the company’s board in an offer for all of the shares of
its reasonable efforts to register in effect or were in effect in 2011. of directors with a majority the company.
under the Securities Act of 1933, of independent directors voting
as amended, the sale of in favor.
ArcelorMittal shares intended
to be sold by those holders.
ArcelorMittal Annual Report 2011
89

89. Major shareholders
continued
Lock-up Subscription to, and share lending Transitional services
The significant shareholder had agreement in connection with, and related agreements
agreed for a five-year period not to the May 2009 share offering Aperam has extended the
transfer (and to cause its affiliates ArcelorMittal sold 140,882,634 transitional services agreement
not to transfer) directly or indirectlycommon shares in a transaction for an additional term of one year
any of the shares in the company that closed on May 6, 2009. until December 31, 2012,
without the approval of a majority Ispat International Investments S.L. according to the terms and
of the independent directors of the (‘Ispat’), a holding company conditions of such agreement.
company. This lock-up provision beneficially owned by Mr Lakshmi In addition, Aperam will be entitled
expired on August 1, 2011. N Mittal and Mrs Usha Mittal, to terminate the transitional
subscribed for 14,088,063 services agreement at any time
Non-compete common shares (or 10%) in the by giving three months’ notice to
For so long as the significant offering on a deferred-delivery ArcelorMittal. ArcelorMittal,
shareholder holds and controls basis. The offering was settled by however, may not terminate the
at least 15% of the outstanding the company on May 6, 2009 transitional services agreement
shares of the company or has (except with respect to Ispat) other than for material breaches of
representatives on the company’s with 98 million common shares the agreement, Aperam’s insolvency
board of directors or Group borrowed from Ispat pursuant to or if control over Aperam changes.
Management Board, the significant a share lending agreement dated
shareholder and its affiliates will not April 29, 2009 and the remainder Among other services, ArcelorMittal
be permitted to invest in, or carry was settled using shares held in will provide the following services to
on, any business competing with the treasury. The company returned the Aperam under the transitional
company, except for Ispat Indonesia. borrowed shares to, and delivered services agreement: (i) corporate
the shares subscribed by, Ispat on insurance, (ii) consolidation, (iii) legal
Repurchase of shares from June 22, 2009 by issuing services, (iv) treasury back office
entity related to director 112,088,263 shares following services, (v) health and safety
Following the contribution shareholder approval at an (REACH implementation platform),
of 76.88% of Saar Ferngas, extraordinary general meeting held (vi) company secretary , (vii)
a German gas and electricity on June 17, 2009 of a resolution technical office, (viii) corporate IS/IT
producer and distributor, broadening the authorization of and (ix) communication. The service
on January 23, 2009 to an the board of directors to increase charges payable by Aperam to
ArcelorMittal associated the company’s share capital. Under ArcelorMittal will be calculated
company, Soteg, the stake the terms of the share lending individually for each service provided
held by ArcelorMittal in Soteg, a agreement, the company paid Ispat on a cost-plus margin basis.
Luxembourg gas and electricity a share lending fee of $2 million.
producer and distributor, increased In particular, under the transitional
from 20% to 26.15%. On February Agreements with Aperam services agreement, consolidation
16, 2009, ArcelorMittal sold in connection with stainless services means the maintenance
2.48% of Soteg to the Government steel spin-off and development of certain
Wind fence system in Brazil
of Luxembourg and SNCI In connection with the spin-off software necessary for Aperam’s
In 2011, ArcelorMittal Tubarão (‘Société Nationale de Crédit et of its stainless steel division into reporting and consolidation.
announced the installation of a wind d’Investissement’), a Luxembourg a separately focused company,
fence system around the coal yard government controlled Aperam, which was completed on Insurance service is limited to high-
that supplies the Sol Coqueria coke
plant in Brazil in order to contain
investment company. January 25, 2011, ArcelorMittal level advice for the management of
dust emissions. The screens are entered into several agreements Aperam’s insurance policies. Access
450 meters long and 20 meters with Aperam. These agreements to certain continuing education
high, one and a half times the height include a master transitional programs provided by ArcelorMittal
of the piles of coal. The $3.6 million
installation was completed in
services agreement dated January will be on an on-demand basis.
December and addresses the issue 25, 2011 (the ‘transitional services ArcelorMittal will also continue to
of dust being generated in the coal agreement’), a purchasing services provide limited legal support, with
yard which then affects local agreement and a sourcing services the possible assistance of external
communities.
agreement, certain commitments legal counsel.
regarding cost-sharing in Brazil and
certain other ancillary arrangements
governing the relationship between
Aperam and ArcelorMittal following
the spin-off, as well as certain
agreements relating to financing.
90

90. Overview
ArcelorMittal continued to The purchasing services agreement Financing agreements
Our business
manage the administrative aspects also permit Aperam to avail itself As of the spin-off, Aperam’s
of Aperam’s trademarks, domain of the services and expertise of principal sources of financing
names and patents portfolio for one ArcelorMittal for certain capital included loans from ArcelorMittal
year, and Aperam had the right to expenditure items not specific entities at the level of ArcelorMittal
continue to use the ArcelorMittal to stainless and specialty steel Inox Brasil, which holds Aperam’s
brand for a transitional six month production. The purchasing assets in Brazil, and ArcelorMittal
period that is now over. services agreement and the Stainless Belgium, which holds
sourcing services agreement have Aperam’s assets in Belgium.
Sustainability
In the area of research and been entered into for a term of two These facilities were refinanced
development, Aperam entered into years, expiring on January 24, 2013. in connection with the spin-off.
arrangements with ArcelorMittal
for its withdrawal from the In South America, ArcelorMittal On January 19, 2011, ArcelorMittal
ArcelorMittal global research and Brasil performed certain corporate Finance as lender and ArcelorMittal
development organization and for functions and certain purchasing and Aperam as borrowers entered
setting out a framework for future activities for the benefit of certain into a $900 million credit facility
cooperation between the two Brazilian subsidiaries of Aperam until for general corporate purposes
Performance
groups in relation to certain March 31, 2011. On April 1, 2011, and for the refinancing of existing
ongoing research and development ArcelorMittal Brasil ceased intercompany and other debt
programs. In addition, Aperam and performing the corporate functions (the ‘bridge loan’). The bridge loan
ArcelorMittal organized the fair of the relevant Brazilian subsidiaries was entered into for a period of
transfer of certain patents to of Aperam and transferred the 364 days after January 25, 2011.
Aperam, as well as the licensing necessary personnel to The bridge loan was made available
of some patents between them. ArcelorMittal Inox Brasil to enable to ArcelorMittal and then
Moreover, Aperam and ArcelorMittal the latter to perform itself the automatically transferred by
Governance
are keeping open the possibility of required corporate functions, operation of law to Aperam in
entering into ad hoc cooperation except for the legal activities and connection with its spin-off.
agreements for future research personnel, which were transferred The bridge loan was fully repaid by
and development purposes. as of May 1, 2011. Insurance, Aperam with the proceeds of (i) a
real estate, purchasing and payroll borrowing base facility agreement
The purchasing and sourcing activities, however, continued to be dated March 15, 2011 and (ii) an
of raw materials generally are performed by ArcelorMittal Brasil offering of notes by Aperam on
not covered by the transitional for the benefit of certain Brazilian March 28, 2011.
Financial statements
services agreement. Aperam subsidiaries of Aperam, it being
will be responsible for the sourcing understood that, as of April 1,
of its key raw materials, including 2011, the costs of these activities
nickel, chromium, molybdenum are being shared by Aperam’s
and stainless steel scrap. However, relevant Brazilian subsidiaries on the
under the terms of the purchasing basis of new cost allocation agreed
services agreement and the upon between the parties.
sourcing services agreement,
Aperam relies on ArcelorMittal Certain services will continue
for advisory services in relation to to be provided to Aperam
the negotiation of certain contracts pursuant to existing contracts
with global or large regional with ArcelorMittal entities that
suppliers, including those relating ArcelorMittal has specifically
to the following key categories: agreed to assume.
energy (electricity, natural gas,
industrial gas), raw materials
(ferro-alloys, certain base
materials), operating materials
(rolls, electrodes, refractories) and
industrial products and services.
ArcelorMittal Annual Report 2011
91

92. Overview
Additional
information
ArcelorMittal as parent company ArcelorMittal Finance S.C.A. is a Minority shareholders litigation
Our business
ArcelorMittal, incorporated under société en commandite par actions On January 8, 2008, ArcelorMittal
the laws of Luxembourg, is the with registered office address at received a writ of summons on
parent company of the ArcelorMittal 19, avenue de la Liberté, L-2930 behalf of four hedge fund
group and is expected to continue Luxembourg, Grand Duchy of shareholders of Arcelor to
this role during the coming years. Luxembourg, registered with the appear before the civil court of
The company has no branch Registre du Commerce et des Luxembourg. The summons was
offices and generated a net loss Sociétés Luxembourg under also served on all natural persons
number B 13.244. ArcelorMittal sitting on the board of directors
Sustainability
of $480 million in 2011.
Finance is indirectly 100% owned of ArcelorMittal at the time of
Group companies listed on the by ArcelorMittal. ArcelorMittal the merger and on the significant
Luxembourg Stock Exchange Finance was, until June 18, 2008, shareholder. The claimants
ArcelorMittal’s securities are traded the principal finance vehicle of the requested, among other things, the
on several exchanges, including the ArcelorMittal group and, in this cancellation and the amendment
Luxembourg Stock Exchange, and connection, it issued a number of of the corporate decisions relating
its primary stock exchange bonds listed on the Luxembourg to the second-step merger in
Stock Exchange. ArcelorMittal order to reflect an exchange ratio
Performance
regulator is the Luxembourg CSSF
(Commission de Surveillance du Finance’s CSSF issuer number of 11 ArcelorMittal (the entity
Secteur Financier). ArcelorMittal’s is E-0225. resulting from the first step
CSSF issuer number is E-0001. merger) shares for seven Arcelor
ArcelorMittal Rodange & shares (ignoring the impact of
In addition to ArcelorMittal, the Schifflange S.A., a société anonyme the share capital restructuring
securities of one other ArcelorMittal with registered office address at of Arcelor) accompanied by the
group company are listed on the 2, rue de l’Industrie, L-4823 allocation by the significant
Rodange, Grand Duchy of shareholder or the company of
Governance
Luxembourg Stock Exchange.
Luxembourg, registered with the additional shares to the claimants
Registre du Commerce et des to reflect this revised ratio, and
Sociétés Luxembourg under alternatively, the payment of
number B 10.643, approximately damages by the defendants
79.84% owned indirectly by (jointly and severally or severally,
ArcelorMittal, was listed on the at the court’s discretion) in an
Luxembourg Stock Exchange amount of €180 million.
until October 31, 2011, when
Financial statements
its de-listing became effective. ArcelorMittal submitted its brief
in response on October 16,
2008, challenging the validity,
the admissibility and the merits of
the claims. The claimants filed their
conclusions on January 5, 2010.
A hearing on the merits took
place on February 15, 2011. By
judgment dated November 30,
2011, the Luxembourg civil court
declared all the plaintiff’s claims
inadmissible and dismissed them.
The judgment is subject to appeal.
Left Port-Cartier, Canada
ArcelorMittal Annual Report 2011
93

93. Shareholder
information
ArcelorMittal is listed ArcelorMittal, with its diversified Indexes
business model, strong cash flow ArcelorMittal is a member of more
on the stock exchanges and cost leadership position, is wellthan 120 indices including the
of New York (MT), placed to weather the current following leading indices: DJ STOXX
Amsterdam (MT), Paris challenging economic environment 50, DJ EURO STOXX 50, CAC40,
(MT), Luxembourg (MT) and has the ambition to develop AEX, FTSE Eurotop 100, MSCI
and balance its shareholder base Pan-Euro, DJ Stoxx 600, S&P
and on the Spanish stock on the major listed markets and Europe 500, Bloomberg World
exchanges of Barcelona, to attract new investors. Index, IBEX 35 index and NYSE
Bilbao, Madrid and Composite Index. Recognized for
Valencia (MTS). ArcelorMittal remains optimistic its commitment to sustainable
about the industry’s medium-term development, ArcelorMittal is also
growth prospects. In light of recent a member of the FTSE4Good Index
market uncertainty primarily due and Dow Jones Sustainability Index.
to the European debt crisis and
its potential global impact, the Share price performance
company has calibrated its steel The price of ArcelorMittal
growth projects to evolving shares declined by 50% in 2011,
demand situations. At the same underperforming both the Global
time, we are focusing on core Metals & Mining sector which
growth investments in our mining declined by 34% and the Global
business given their generally more Steel sector which declined by 39%.
attractive return profiles. This has The underperformance largely
resulted in postponement of some occurred during the third quarter
planned steel investments. of 2011 when fears of a potential
Accordingly, full year 2012 capital eurozone crisis intensified. This
expenditure is expected to be unease affected the share price
approximately $4-4.5 billion. performance of those companies
with significant trading exposure to
ArcelorMittal share price performance since creation Base 100 at August 1, 2006 ($)
350
300
250
ArcelorMittal
200
150
Global Metals & Mining
(incl Steel) Index
100
50
0
Aug 06 Dec 06 Apr 07 Aug 07 Dec 07 Apr 08 Aug 08 Dec 08 Apr 09 Aug 09 Dec 09 Apr 10 Aug 10 Dec 10 Apr 11 Aug 11 Dec 11
94

94. Overview
the eurozone block. ArcelorMittal’s The dividend payments will occur Individual investors Socially responsible investors
Our business
share price was further impacted on a quarterly basis for the full ArcelorMittal’s senior management The investor relations team is
by concerns over the company’s year 2012 (see financial calendar). plans to meet individual investors also a source of information for
indebtedness and perceived risks Dividends are announced in $ and and shareholder associations in the growing socially responsible
that debt covenants could be paid in $ for shares listed on the road shows throughout 2012. investment community. The
breached; these concerns were New York Stock Exchange and A dedicated toll free number for team organizes special events
addressed at our Investor Day on paid in euros for shares listed on individual investors is available at on ArcelorMittal’s corporate
September 23, 2011.Subsequently, the European stock exchanges +352 4792 3198. Requests for responsibility strategy and
during the final three months of (the Netherlands, France, Spain, information or meetings on the answers all requests for
Sustainability
2011, ArcelorMittal’s share price and Luxembourg). virtual meeting and conference information sent to ArcelorMittal
increased by 14%, outperforming center may also be sent to: at: SRI@arcelormittal.com
the Global Steel and Global Metals Investor relations privateinvestors@arcelormittal.com
& Mining peer groups. By implementing high standards Credit and fixed income investors
of financial information disclosure Analysts and institutional Credit, fixed income investors
Dividend and aiming to provide clear, investors and rating agency are followed
ArcelorMittal’s board of directors regular, transparent and balanced As the world’s leading steel and by a dedicated team from
has recommended to maintain the information to all its shareholders, mining company, ArcelorMittal investor relations reachable at:
Performance
annual dividend per share at $0.75 ArcelorMittal aims to be the first constantly seeks to develop creditfixedincome@arcelormittal.com
for 2012, subject to the approval choice for investors in the sector. relationships with financial analysts
of the annual general meeting of and international investors.
shareholders on May 8, 2012. To meet this objective, ArcelorMittal Depending on their geographical
Once market conditions have implements an active and broad location, investors may use the
normalized, the board of directors investor communications policy: following emails:
will review the dividend policy. conference calls, road shows with institutionalsamericas@arcelormittal.com
the financial community, regular investor.relations@arcelormittal.com
Governance
participation at investor
conferences, plant visits and
meetings with individual investors.
Financial statements
Financial calendar
Financial results*
February 7, 2012 Results for 4th quarter 2011 and 12 months 2011
May 10, 2012 Results for 1st quarter 2012
July 25, 2012 Results for 2nd quarter 2012 and 6 months 2012
October 31, 2012 Results for 3rd quarter 2012 and 9 months 2012
* Earnings results are issued before the opening of the stock exchanges on which ArcelorMittal is listed.
Dividend payment (subject to shareholder approval)
March 13, 2012 1st quarterly payment of base dividend (interim dividend)
June 14, 2012 2nd quarterly payment of base dividend
September 10, 2012 3rd quarterly payment of base dividend
December 10, 2012 4th quarterly payment of base dividend
Institutional investor days and retail shareholder events
May 8, 2012 Annual shareholder meeting in Luxembourg
September 18, 2012 Investor Day with Group Management Board members
September 26, 2012 Retail shareholder event
Contact the investor relations team on the information detailed above or please visit
ArcelorMittal Annual Report 2011
www.arcelormittal.com/corp/investors/contact
95

95. We are delivering
cost improvement
If we are to maintain our leadership position in the steel industry, we must be
competitive on costs. We have a track record of consistent cost improvement,
delivered through our management gains program. Since 2008, we have
taken $4 billion out of our costs and we are on course to achieve the target
we set ourselves of $4.8 billion of savings by the end of 2012. In September
2011, we announced a new asset optimization plan, which is separate from
the management gains program. This is designed to optimize our production
footprint by concentrating production around our lowest-cost plants and
allow us to run them at full capacity – thereby ensuring maximum productivity
at our ‘core’ facilities while losing none of our ability to service our customers.
The asset optimization plan is targeted to add $1 billion run rate a year to
sustainable Ebitda by the end of 2012.
Picture North of England

96. Overview
Our business
Sustainability
Performance
Governance
Financial statements
Average steel selling prices 2011 $ a tonne
Flat Carbon Americas 892
Flat Carbon Europe 982
Long Carbon Americas and Europe 937
AACIS 736
Distribution Solutions 993
ArcelorMittal Annual Report 2011
97