Investor VisitGhent, 3-4 July 2017

ArcelorMittal Gent – a center of steel excellenceMatthieu Jehl, CEO ArcelorMittal Belgium

Investor VisitGhent, 3-4 July 2017

ArcelorMittalPresence in Belgium

Fleurus

Geel

Genk

Liège

Gent

Charleroi

Shipments 6.6 million tons

Turnover 4.0 billion Euro

Internal staff 5,800 employees

Subcontractors 1,300 at work on site/daily

Investments

144 million Euro

Main investment projects:• Hot strip mill (Ghent)

Walking beam furnace & 2 newfinishing stands

• Upgrade continuous annealing line (Liège)

• Jet Vapor Deposition (Liège)

ArcelorMittal BelgiumKey figures (2016)

Flat products

R&D

Strategic R&D partner

Distribution solutions

Malonne

ArcelorMittal BelgiumExceptional strengths in Europe

• Health & Safety as priority no. 1 in our journey to “zero”

• Customer reference:− Product offer, product development,

quality & service• Unique upstream and downstream

integration in close geographical proximity• Unique & broad product range (uncoated,

metallic coated, Organic Coated)− More than 50% of our shipments are

coated products• Spearhead the development of new ultra-

high strength steel products

18 17 16

1,8 0,9 0,8 1,0 0,302468

101214161820

2013 2014 2015 2016 2017(Q1)

Belgian industry(includes all types of industry)

ArcelorMittal Belgium(own workforce + subcontractors)

Safety frequency rate (LTIFR)

2

ArcelorMittal Belgium:Production facilities (2016)

Coking plant (Ghent) 1.2Mt

Sinter plants (Ghent) 5.7Mt

Blast furnaces (Ghent) 4.9Mt

Steel shop (Ghent) 5.4Mt

Hot strip mill (Ghent) 4.7MtCold rolling mill

2 tandems (Ghent) 1 tandem (Liège)

1 pickling line (Ghent)

4Mt

1.4Mt

Annealing1 Continous annealing line (Ghent)1 Continous annealing line (Liège)1 Batch annealing furnace (Ghent)

0.9Mt

0.8Mt

Blast furnaces - Ghent

Hot strip mill - Ghent

3

ArcelorMittal BelgiumProduction facilities (2016)Galvanising

1 Electrolytic galvanising line (Genk) 1 Electrolytic galvanising line (Marchin)

3 Hot dip galvanising lines (Ghent) 2 Hot dip galvanising line (Flémalle)

1 Hot dip galvanising & Combiline (Ramet)

0.6Mt

2.5Mt

Organic coating1 Organic coating line (Geel)

1 Organic coating line (Ghent)1 Combiline & coating line (Ramet)

0.6Mt

Tinning Liège1 Cold rolling mill & Tandem (Tilleur)

1 Tinning line (Tilleur)0.3Mt0.1Mt

Tailored welded blanks 2 blanking lines & 6 laserwelding lines (Ghent)

1 blanking line (Liège)10Million11Million

Organic coating line - Liège

Strong finishing capacity More then 50% of shipments are coated products

4

Focusing on ArcelorMittal GentFully integrated steelworks

Highly effecient layout lower production costs & higher energy efficiency

Cold rolling mill and finishing

Hot strip mill

Blast furnaces

Steel shop

Raw materialpark

Coking plant

Sinter plants

Power plant

x

5

ArcelorMittal GentExcellent Maritime accessibility

• Canal Ghent-Terneuzen accessible for post-panamax vessels

• Max. measurements– Length: 265m– Width: 37m– Depth: 12.5m

• Quay– Length: 1,050m– Depth: 13.5m– Max. deadweight: 71,000T

Accessible to capesize vessels from 2022 (120Kt) (new lock in Terneuzen)

x

North Sea

6

ArcelorMittal Belgium

Shipments (Mt)

Product mix

7

Belgium

11%2%

UK

Netherlands

18%

19% France

30%Germany

Rest of Europe

20%

0

1

2

3

4

5

6

7

20152015

Industry

PackagingExportsInterworks outside AM Belgium

Automotive

Packaging

3%

Organic coated

11%

Galvanized47%

CR18%

HR21%

Destinations of shipments in Europe

Current operating environmentchallenges

North Sea

• Overcapacity is there to stay

• Resources scarcity, CO2, environment

• Avoid commoditization

• Sustainable financial results

Challenges

• Remain on top of the cost curve− Continuous improvement and WCM− Productivity

• Energy / Process efficiency− Adequate Raw Materials strategy− Compliance with EU regulations

• Adequate offer to customer− Permanent product innovation− Best-in-class service and quality− Constant innovation (viz. Industry

4.0)

• Generate enough cash to finance our CAPEX requirements

Our responses

8

Continuous improvementOur key to success

North Sea

WCM our overall approach for continuous improvement

2. Operational ExcellenceLow costs

3. Optimal order book

4. Investments and innovation

5. Sustainable future 1. Health &

Safety

9

Key objectives in a nutshell…

Health & Safety

Employee Engagement

Productivity & Reliability

Process efficiency & Quality

Innovation in all areas

Sustainability and Environment

• Indirect employment: +13,000• Direct employment: 4,700 employees

• Internal training department:− 2016: >5% of total wage bill

A much higher percentage than what is stipulated by the Belgian government: 1.9%

ArcelorMittal GentAn attractive employer

North Sea

Highly qualified employees & high level of expertise

70

20

10blue collarswhite collarsexempts

%

%

%Breakdown

11

0123456

0

1.000800

600400200

1.200

2016

5,3

2011

+159%

4,9

2001

4,3 4,4

20061991

3,2

1996

3,7

Productivity [ton/FTE]Shipments [Mt]

ArcelorMittal GentProductivity & shipments

Shipments 1991 Shipments 2016

Our productivity more than doubled over the last 20 years; portfolio optimized12

Hot rolled 38%Cold rolled57%

Coated5%

34%

Cold rolled32%

Coated34%

Hot rolled

ArcelorMittal GentQuality & service

North Sea

% shipments 1st choice

Continuous focus on quality and customer service

• Increasing the reliability of our installations• Investing in the training & development of our employees • Process automation• WCM – continuous improvement

13

95.0%

97.0%

95.5%

0.0%

96.0%

97.5%

96.5%

2012

97.097.3

2015

2.4%

96.5

20132010

95.8

2009 2014 2016

96.796.9 96.9

2011

94.9

InnovationPart of our DNAo

North Sea

Innovation key to our strength pushing the boundaries of steelmaking

- Circular economy belong to our business model - Innovative products and coatings- Industry 4.0 is our mindset, becoming the smart steel plant of

the future- Advanced automation in production processes and logistics

Collaboration with R&D; proximity of CRM and OCAS

Collaboration with theacademic world

Collaboration withinnovating clusters and

other industries

14

Industry 4.0 as our mindsetBecoming a smart plant

North Sea

15

Health &

Safety

Maintenance &

Reliability

Handling &

Logistics

Customer&

Supplierlink

Infrastructure: Wifi/broadband, Cyber Security, adequate hardware, servers

Big Data: Data captation, data platforms, analytics tools, modeling tools

Devices: Cameras, drones, sensors, beacons, tags, smartphones, tablets, hololens

Skills: Awareness, mindset, training, competences

X

X

X

Infinite possibilities

=

Production &

Quality

We’re pushing the boundaries to become the steel plant of the future

15

Process innovationComputerisation & automation

• In-house developed intelligence planning system determining the production sequence

Increased productivity Efficient use of materials and energy Shorter delivery times

• Online tracking of supplies

• Automation of crane movements 18 realised 2 ongoing 3 to come

16

Process innovationTrack & Trace

17

Providing our customers transparent and real-time tracking information on their shipment status

• Streamlining our processes• Saving on time

17

Product innovationT

More than half of the steel grades made in 2016 did not exist 7 years ago

18

Product innovation - Fortiform®

Developed by the ArcelorMittal group

• Newest generation of ultra-high strength steel• Part of the solution for the automotive industry (95gr/CO2 in 2020):

Up to 20% lighter car body work Less fuel consumption Living up to the highest safety requirements

• The first Fortiform® steels are available (the whole range will exist of >10 products)

• €250 million invested in Ghent & Liège: steel shop, hot strip mill, continuous annealing, JVD

We are committed to develop the steel grades of the future

19

ArcelorMittal GentSustainability & environment

North SeaMillion EUR

0

50

100

150

200

250

300

350

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '05 '07 '08 '09 '10 '11 12 13 14 15 16

Water Waste + soil Air + noise Energy savings

10-15% of yearly investments goes towards environmental measures

20

ArcelorMittal GentBenchmark in energy efficiency

North Sea

10

12

14

16

18

20

22

24

26

1980 1985 1990 1995 2000 2005 2010 2015

GJ / to

n ho

t rolled stee

l

Steam recovery

1st continuous caster

Pulverised coal injection

Walking beam furnaces

Converter gas recovery

2nd continuous caster

The plant achieves top global energy consumption levels21

Demonstration plant: Ethanol from blast furnace gas

Commissioning expected by 2019/2020 Production: 80 million liters ethanol

100,000 electrical cars

120 wind mills

OR

CO2 reduction equal to

Equivalent to

(according to energy objective) Blast furnaces Gas treatment

Water treatment

Cogeneration

Bioreactor Distillation Bioethanol

Filter biomass

Breakthrough project enabling us to further reduce our CO2 emissions

22

TakewaysD

• ArcelorMittal Belgium is one of the best performing steel sites in Europe

• Driven by continuous improvement

• The challenge is to remain on top of competition

• We believe in a long-term success thanks to:– Effective implementation of our strategy– Innovation in all domains– Operational excellence– Right answer to social and environmental

challenges

23

THANK YOU FOR YOUR ATTENTION!

Are there any questions?