Aperam – Positioning, strategy and drivers

Bernard Fontana – Chief Executive Officer

16 December 2010

1

Forward-looking Statements

This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries.

These statements include financial projections and estimates and their underlying assumptions, statements

regarding plans, objectives and expectations with respect to future operations, products and services, and

statements regarding future performance. Forward-looking statements may be identified by the words “believe,”“expect,” “anticipate,” “target”, “will” or similar expressions. Although ArcelorMittal’s management believes that the

expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal’s

securities are cautioned that forward-looking information and statements are subject to numerous risks and

uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could

cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed

or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de

Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the “SEC”) made

or to be made by ArcelorMittal, including ArcelorMittal’s Annual Report on Form 20-F for the year ended December

31, 2009 filed with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

2

Content

• Overview

• Markets and products

• Unique strengths

• Challenges and opportunities in stainless steel

• Challenges and opportunities in electrical steel, alloys and specialties

• The Leadership Journey

• Q&A

3

Overview

4

Aperam snapshot

An EBITDA average of USD 778m over 2007-2009 representing approximately 5%* of ArcelorMittal’s EBITDA

*Stainless steel segment within ArcelorMittal

– A global player in stainless steel

• 2.5mt of Flat stainless steel capacity in Europe and Brazil (27% of Aperam turnover in 2009)

– Leading position in high valued added niches, alloys and specialties

• Stainless specialities (Ferritics)

• Electrical steel (GO and NGO)

• Special-carbon

• Nickel alloys & specialties

– A highly integrated distribution, processing and services network

– A unique capability to produce stainless and specialities from low cost biomass/charcoal

– An industrial network concentrated in 6 main plants located in Brazil, Belgium and France

• Approximately 9,800 employees

5

A global player

FOREST

SALES AGENCIES

SERVICE CENTERS

PLANTS

North America

South America

Europe and CIS

Middle-East & Africa

Asia & Pacific

43 kT 743 kT

46 kT

41 kT

228 kT

Stainless steel shipments in 2009

Source: Aperam

6

Production assets in Europe &

South America

Strong presence in both Europe and South America

Isbergues

Location & facts

- Cold-rolling mill and

finishing

- France

Capacity:

- Finished: 350 kt

- LC2i: integrated line

Gueugnon

Location & facts

- Cold-rolling mill and

finishing

- France

Capacity:

- Finished: 400 kt

- Specialised in Bright Annealing (BA)

products and

stabilized ferritics

Châtelet

Location & facts

- Melt shop and hot-

rolling

- Belgium

Capacity:

- Slabs : 1,000 kt

- HSM : 3,400 kt

Location & facts

- Melt shop and cold rolling mill

- Belgium

Capacity:

- Slabs: 1,200 kt

- Finished: 740 kt

- 2,000 mm wide

capacity, 316 and

duplex grades

- Cold rolling mill: 750kt

Genk Timóteo

Location & facts

- Melt shop and

finishing facilities

- Brazil

Capacity:

- Melt shop: 900kt

- 320kt cold rolled &

60kt hot rolled annealed and pickled

- Silicon cold rolling: 60kt GO and 120kt of

NGO

Location & facts

- Melt shop and

finishing facilities

- France

Capacity:

- EAF: 60 kt

- 1 VIM, 1 VAR, Rotary

Continuous Caster for Long Products

– Hot Rolling mill of wire: ~40 kt

– 6 Cold Rolling Mills

Imphy

7

Alloys & Specialties

BioenergiaBiomass & Upstream

Strategic participation

Stainless

&

Electrical Steel

Services

&

Solutions

Industry

Tubes

Precision

Industry

Distribution

Distribution

Wire drawing

Components

Industry

Tubes

An organization by core competencies

GMO

Distribution

8

Team and organisation

Bernard FONTANA

CEO

Julien BURDEAU

Alloys &

Specialities

Jean-Paul ROUFFIAC

Clenio GUIMARAES

Timoteo DIMAULO

Services &

Solutions

Johanna VAN SEVENANT

Sustainability,

HR &

Communication

Stainless &

Electrical steel

South America

Julien ONILLON

CFO &

StrategyStainless &

Electrical steel

Europe

53 years old

48 years old

58 years old 51 years old 39 years old 40 years old 42 years old

9

Markets and products

10

Demand for stainless steel driven by consumers and industrial investments

Stainless steel consumption by end user*

General

Industry

20%

Building &

Construction

17%

Automotive &

Transportation

12%

Catering &

Appliance

34%

Others

3%

Energy &

Chemicals

Industry

14%

Stainless steel represents only 2% of

total world steel market in volume

Main end-user applications

*Pre-crisisSource: Aperam

11

Demand for stainless steel comes later

in the economic development cycle

Stronger growth potential in stainless steel than carbon steel

Carbon steel consumption per capita* (kg/year) Stainless steel consumption per capita* (kg/year)

0

2

4

6

8

10

12

Emerging world China Developed world

90%

x8

0

100

200

300

400

500

Emerging world China Developed world

30%

x6

*Pre-crisisSources: CRU and Aperam

12

Grain Oriented (GO)

• GO is used in the construction of static electrical

machines / transformers

• Amorphous alloy is the only material that

competes with GO steels (restricted to small

distribution transformers for specific market

segments )

Electrical steel products are driven by

energy oriented applications

Non-grain Oriented (NGO)

• NGO is used in the construction of large and

small rotating electrical machines (hydro-

generators , electrical motors, hermetic motors /

compressors for refrigerators, air conditions and

freezers, drills, household appliance transformers,

energy meters , ballasts ….)

• Limited substitution threat

High

Low

Low HighP

ola

rizati

on

Core Losses

High grades

• Higher efficiency equipment

• Lower Energy consumption

• Lower CO2 emissions

Regular grades

• Low efficiency

equipment

• High energy

consumption

Best properties

Stricter governmental regulations, greater electricity demand/cost, focus on energy

efficiency and environmental concerns drive the growth of both GO & NGO products

13

CAPEX budget of USD 4.0 billion for 2010

Nickel Alloys applications and products

High value added materials (price over 20,000 USD/t) with unique properties

Magnetic and controlled expansion alloys

• FeNi alloys (Ni>25%) and FeNiCo exhibit unique thermal

expansion coefficient and magnetic properties

Superalloys, corrosion alloys

• High Ni-based alloys, enriched with Cr and additions of

Co, Mo, Nb, Ti exhibit outstanding corrosion

performance in various environments and mechanical

properties at high temperatures

Specialty stainless grades

• Strict control of residuals

Oil & Gas Aerospace

Heat resistance Electronics

14

Unique strengths

15

Strategy to leverage and maximize unique strengths

What makes Aperam unique

– Long-term growth trends in mature markets supported by emerging market demand• Emerging markets representing approximately 30% of Aperam total sales• Approximately 30% of sales in emerging markets

– Global, integrated distribution network and proximity to customer• Services & Solutions division provides exclusive global distribution channel• Focus on services, partnership and customer satisfaction offers growth opportunities

– Leading R&D capabilities• Continuous product development and innovation (Ferritics, High-end GO/NGO, Nickel Alloys, Duplex…)• R&D facilities in France and Brazil

– Culture of continuous improvement • Continuous improvement program ensuring cost effectiveness and focus on health & safety

– Ability to produce stainless and speciality steel products from low-cost charcoal• Unique upstream integration into forestry asset provides cost advantage and access to sustainable energy source

– Strong financials through the cycle and effective working capital and risk management• Superior earnings profile and lower volatility• Best in class working capital ratio• Active use of risk management tools to manage in particular Nickel exposure

16

Leading global stainless and specialty steel producer

Nickel Alloys producers ranking in Europe (by production)

TK VDM

30-35 kt 20-

25 kt

Aperam

5 kt

DNick

7 kt4 kt

Generalist pure players

Specialists / Multi materials

3 kt2 kt 2 kt

KanthalBGH

A&D

VAC G&G

1 kt

Isabellen Hütte

Wire drawers

Flat product stainless steel producers ranking (by slab capacity)

0

1

2

3

4

TKS

Ace

rino

xTIS

CO

YUS

CO

POSC

OA

peram

Out

okum

pu

Fujian D

enshe

ngB

aost

eel

Nip

pon S

teel

AK

Ste

el

CAPEX budget of USD 4.0 billion for 2010Leading player in stainless and specialty steel in Europe and South America

Sources: CRU and Aperam estimates

17

A small but fast growing market

Market leader in stainless and electrical steel in Brazil

Brazilian stainless steel demand estimates (000t) Brazilian electrical steel demand estimates (000t)

0

50

100

150

200

250

300

350

400

450

2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E

GO (Grain oriented) NGO (Non-Grain Oriented)

+90%

0

100

200

300

400

500

2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E

+75%

Sources: CRU and Aperam

18

Close to customer through a highly

integrated distribution network

Sales subsidiaries and representative offices Steel Service CentersSales agencies

A key competitive advantage to maintaining market share and capturing growth opportunities

Sales, distribution and steel services centers networkStrong relationships with global and long term customers, including Whirlpool,

Bosch Siemens, Indesit and others…

19

Strong R&D capabilities catering to

high-end application and specialities

High-end application and specialties products

Commodity and specialty price (USD/t) Sales 2009 breakdown by products

Stainless steel

80%

Electrical Steel

11%

Nickel Alloys

& Specialities

9%

High

grade GO

Base

price

Stainless 430

Regular

GO

Nickel

alloys

Base

price

Stainless 304 CR

500

0

High

grade

NGO

Regular

NGO

1,000

1,500

2,000

2,500

3,000

17,000

Base price

Surcharge

Sources: Aperam

20

Strong culture of continuous improvement

Steelshop

Chatelet

1.0Mt

Genk

1.1Mt Clients

Isbergues

0.35Mt

Genk

0.74Mt

Gueugnon

0.40Mt

Cold rolling

Steel Service Centers

Transformation

Direct sales

Service

Chatelet

3.4Mt

Hot rolling

Timoteo

0.90Mt

Timoteo

0.88Mt

Timoteo Electrical 0.17Mt

Timoteo Stainless 0.38 Mt*

Electrical flat

Stainless flat

Steel Service Centers

Transformation

Direct sales

Imphy

0.06 Mt Imphy (wire)

ImphySSCs, Direct sales

Transformation

Ni alloys &

specialties

Chatelet (strip)

Stainless flat

* Includes 0.06Mt of finished HRAP products

Upstream has been significantly upgraded in Europe demonstrating rationalisation efforts

21

Equivalent Coke and Charcoal cost in 2009 (USD/t)*

280

194Brazil

(charcoal)

Imported

(coke)

31%

A unique capability to produce stainless

and specialties from Biomass

Biomass is a strong competitive cost advantage

– Strategic participation of 36% in Bioenergia which produces biomass (charcoal) from eucalyptus - planting, maintenance and cutting at 7 years old

– Consumed 194,000t of biomass (charcoal) in 2009 and target to

double consumption of biomass (charcoal) by shifting Blast

Furnace #2 from coke to biomass by 2012

– Positive impact on environment

*One tonne of charcoal is equivalent to approximately 0.90 tonne of cokeSource: Aperam

22

Strong financials through the cycle and

effective working capital management

Earnings profile is less volatile than competitors due to relative high proportion of long term contracts, ferritics, specialties and geographic diversity

EBIT per tonne (in USD)

*Average of Acerinox, ThyssnKrupp Stainless and Outokumpu** Average of Acerinox and OutkumpuSource: Aperam

Operating working capital as % of sales

-1500

-1000

-500

0

500

1000

1500

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

European competitors* ArcelorMittal Stainless

0%

10%

20%

30%

40%

50%

60%

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

European competitors** ArcelorMittal Stainless

23

Challenges and opportunities in

stainless steel

24

Global stainless steel demand has

more than recovered from 2009

Stainless steel market structure (mt)

Long-term growth expected to be around 6%

Global flat stainless steel demand* (mt)

-

5

10

15

20

25

30

1998 2008 2009 2014E

China

Emerging World

Developed World

25%

42%62%

40%

13% 32%

26%

34%

37%

29%

37%

31%

32%

Sources: CRU

0

5

10

15

20

25

30

2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E

Cold rolled Hot rolled

+6% per

year

+20%

25

European demand expected to come

back to pre-crisis levels in 2013/2014

Western Europe remains a major stainless steel consumer and technology leader, while Eastern Europe is expected to continue to expand

Eastern European HR & CR demand (mt)Demand for stainless steel flat products in Western Europe* (mt)

Source: CRU

0

1,000

2,000

3,000

4,000

5,000

6,000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

E20

11E

2012

E20

13E20

14E201

5E0

100

200

300

400

500

600

700

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

E20

11E

2012

E20

13E

2014

E20

15E

26

South American demand is growing again at a solid rate

South America presents important

growth potential

Stainless steel consumption per capita pre-crisis (kg/year)

0

1

2

3

4

5

6

Other South

America

India Brazil China US

Sources: CRU & Aperam estimates

Stainless steel flat products demand in South America (kt)

0

100

200

300

400

500

600

700

2003

2004

2005

2006

2007

2008

2009

2010E

2011E

2012

E20

13E20

14E

2015

E

Rest of South America

Brazil

27

Despite increased demand, structural

overcapacity remains a challenge

Worldwide excess capacity* (mt)

Stainless steel prices expected to remain under pressure

Global utilization rates* (mt)

Source: CRU

50%

55%

60%

65%

70%

75%

80%

85%

90%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2007 2008 2009 2010 2011 2012 2013 2014 2015

China Rest of World

28

Raw material impact on pricing

Nickel pricing has a high influence on short term demand and pricing for

stainless steel

*Sources: Steel Business Briefing

Stainless steel CR 304 base price versus LME Nickel pricing* (US$/t)

Stainless steel CR 304 base price versus Ferro-chrome North Europe Import CFT*

0

50

100

150

200

250

Jan

04

Jul

04

Jan

05

Jul

05

Jan

06

Jul

06

Jan

07

Jul

07

Jan

08

Jul

08

Jan

09

Jul

09

Jan

10

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

FeCr Europe (USc/lb) - RHS Europe Base price CR 304 (USD/t) - RHS

0

10,000

20,000

30,000

40,000

50,000

60,000

Jan-

04

Jul-

04

Jan-

05

Jul-

05

Jan-

06

Jul-

06

Jan-

07

Jul-

07

Jan-

08

Jul-

08

Jan-

09

Jul-

09

Jan-

10

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Nickel - LME (USD/t) - LHS Europe Base price CR 304 (USD/t) - RHS

29

Challenges and opportunities in

electrical steel, alloys and specialties

30

Electrical steel market growth expected

to come mainly from China

By 2015, 90% of new electrical steel demand is expected to come from China,

while demand in the developed world will return to 2008 levels

Global GO demand (mt) Global NGO demand (mt)

-

0.5

1.0

1.5

2.0

2.5

3.0

2004

2005

2006

2007

2008

2009

2010

E

2011

E

2012

E

2013

E

2014

E

Europe, Middle East & Africa Americas Asia

+10%

per year

-

2

4

6

8

10

12

14

2004

2005

2006

2007

2008

2009

2010

E

2011

E

2012

E

2013

E

2014

E

Europe, Middle East & Africa Americas Asia

+12% per year

Source Aperam

31

Current overcapacity due to crisis

expected to reduce progressively

Despite rapid capacity expansion, supply demand equilibrium in China is

expected to remain tight

Global capacity and demand for GO (mt)

Source Aperam

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2008 2009 2015E

Demand

Capacity

+56%

+18%

0

2

4

6

8

10

12

14

16

2008 2009 2015E

Demand

Capacity

+40%

Utilization

Rates100% 64% 84%

Utilization

Rates93% 71% 101%

Global capacity and demand for NGO (mt)

32

CAPEX budget of USD 4.0 billion for 2010

Nickel alloys markets expected to recover

in line with core end-use sectors

Innovation will be key in capturing alloys market growth

Ni use in nickel alloys

Sources: Steel Market Research Gmbh, 2009

End-use sectors: CAGR 3-4%

50

75

100

125

150

175

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CAGR +8.5%

+50% by 2015

60

70

80

90

100

110

120

130

140

150

2008 2009 2010 2011 2012 2013 2014 2015

Ba

se

: 2

00

8 =

10

0%

Power

generation

Oil & Gas

Process

industries

Elec.

Appliances

Aerospace

33

The Leadership Journey

34

An adverse trend

EBITDA expected to decline significantly in Q4 compared to Q3 due to price pressure and seasonality as anticipated

Aperam quarterly EBITDA (USDm)**Southern Europe - CR 304 2B 2mm coil base price (€/t)*

*Source SBB

144

178

66

1Q 2010 2Q 2010 3Q 2010

** Non audited

800

850

900

950

1000

1050

1100

1150

1200

1250

Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11

35

The Leadership Journey to confront

challenges and seize opportunities

• Leadership Journey accelerating sustainable management gains

– Targeting USD 250m over the next two years

Approximately USD 40m of provisions to initiate Leadership Journey in 2010

Based upon :

– USD 100m of fixed costs improvement (including Isbergues traditional cold roll mill suspension, Gueugnon Hot AP line project, tubes assets optimization in South America, fixed cost base improvement plan in Brazil, SG&A reduction plan through organization simplification)

– USD 100m variable costs improvements (including charcoal program and connection to natural gas in Brazil, yields and quality plans)

– USD 50m of EBITDA upside on additional business from existing assets, growth in biomass (charcoal), etc…

36

Biomass (charcoal) production to be doubled and to represent 35% of Aperam energy needs by 2012

Forest expansion and biomass development

*Share of Bioenergia

Source: Aperam

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014

Biomass Stainless & Electrical Stainless, Electrical & Alloys

Biomass integration (% of Aperam production)Biomass (charcoal) production (000t)*

0

100

200

300

400

500

2009 2010E 2011E 2012E 2013E 2014E

37

Current downstream industrial network Future downstream industrial network

29 downstream tools

Total capacity of 1.49mt Total capacity of 1.39mt

Reconfiguring European downstream to achieve cost leadership

20 downstream tools

Rationalization initiated by temporarily suspending the Isbergues’ traditional cold rolling mill capacity of 100,000t

38

Investment in productivity

Benefits:

- Productivity increase

- Energy saving

- Elimination of one line

- Quality and yield

improvement

- Gain of approximately

40 USD/t

Existing picklingshot blastingx4FurnaceManual welding Existing edge trimming

We Keep the existing bay with exiting over-cranes

New shot

blastingx4New Scale

breakerNew furnaceNew

welder

New 2 Pickling

tanks + brushes

CurrentRD7

Future RD79

New Pay-off

SCHEME

This part of RD7 line is kept (minor modifications)This part of RD79 line is new

USD 62m for a new Hot Annealing and Pickling line in Gueugnon

39

Each additional tonne expected to contribute approximately USD 450 of EBITDA

Capturing post-crisis growth and recovery

Stainless steel demand in Western Europe (000’t)*

* Source: CRU

2,500

3,000

3,500

4,000

4,500

2008 2009 2010E 2011E 2012E

+22%+3%

+4%

Stainless steel demand in Brazil (000’t)*

200

250

300

350

400

2008 2009 2010E 2011E 2012E

+43%

+7%

+6%

40

Project to capture South American growth in electrical steel

Capacity expansion for 180,000t in high grade electrical steel under review

Hot

Rolling

Cold R

olling

Electrical

Cold

Rolling

Stain

less

Melt Shop

BF1BF2

CR5

HAP5

DC2BOX5

CL2

HAP

CR New ZMill

New HAP5 – 400 kty

DC2 BOX5 CL2 New GO final lines (Decarb, Box, Carlite)

LF New Ladle Furnace

LF

GO and NGO expansion project

41

Other opportunities and potential

Asian footprint and upstream integration would require M&A

…and upstream opportunities

• Develop further Biomass (charcoal) opportunities

• Strategy to actively look at upstream and mining opportunities (Cr, Ni) directly or in partnership

• Upstream integration aiming to secure strategic raw materials and create upstream/production synergies by leveraging ArcelorMittal technology in

ferro-chrome and nickel pig iron.

Developed world

South American

Brownfield Expansion

Asian opportunities

Asia…

• Targeted opportunities in Nickel Alloys & Specialties and Services & Solutions to be explored

42

Q&A