ArcelorMittal - Leading the specialty steel industry, Investor Presentation, Paris 2007

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11-13 September 2007 - Investor Day - Paris

Leading the specialty steel industry

Michel Wurth – Member of GMB

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DisclaimerForward-Looking Statements

This document may contain forward-looking information and statements about ArcelorMittal S.A. including Arcelor S.A. 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”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 Netherlands Authority for the Financial Markets, the Commission de Surveillance du Secteur Financier (“CSSF”), the Luxembourg securities regulator and the U.S. Securities and Exchange Commission (“SEC”) made or to be made by ArcelorMittal or previously made by its predecessor, Mittal Steel Company N.V. (“Mittal Steel”). ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

Additional Information

In connection with the proposed merger of ArcelorMittal with Arcelor, Mittal Steel, ArcelorMittal and Arcelor have filed and will file important documents with the relevant securities regulatory authorities, including the filing with the U.S. Securities and Exchange Commission of a registration statement that will include a proxy statement/prospectus. The proxy statement/prospectus will contain important information about the merger and related matters. ArcelorMittal and Arcelor will make public such proxy statement/prospectus and mail the proxy statement/prospectus to the ArcelorMittalU.S. shareholders. Additionally, a proxy statement/prospectus will be filed with the CSSF for European shareholders. Investors and security holders are urged to read the applicable proxy statement/prospectus, and any other relevant documents filed with the relevant securities regulatory authorities, when they become available and before making any investment decision. U.S. shareholders will be able to obtain a free copy of the U.S. proxy statement/prospectus (when available) and other related documents filed with the SEC by ArcelorMittal (and Mittal Steel as its predecessor) and Arcelor at the SEC’s web site at www.sec.gov and from ArcelorMittal and Arcelor at www.arcelormittal.com. European shareholders will be able to obtain the European proxy statement/prospectus (when available) and the related documents at the registered office of Arcelor and ArcelorMittal and at www.arcelormittal.com.

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Agenda

• Specialty steel business model

• Heavy & Special Plates

• Automotive

• Special Flat & Long products

• Conclusion

310/09/2007 Confidential

Specialty steel business model

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More than 32mt of specialty steel shipments in 2006

The leading and most diversified speciality steel producer

*Source company reports and ArcelorMittal estimates

Value added >60%

ArcelorMittalShipments in 2006

110.5mt

Specialty steel producers in 2006

32.5mt

2006

54%

14%

9%

4%

8%

7%

Specialities29%

5%

ArcelorMittal Company 1 Company 2 Company 3 Company 4 Company 5

Long products specialities

P ipes & Tubes

Wire drawing

Stainless

Tinplate

P lates

Automotive

5

100

120

140

160

180

200

H1 '06 H1 '07

Auto

Plates

AM

Characteristics of speciality steels within ArcelorMittal

A growing, profitable segment with excellent prospects

Turnover

Growth

EBITDA

Evolution

HRC AHSS Heavy

Plates

Wire Special

Plates

Stain

less

AM Volume evolution (H1 ’07 vs H1 ‘06)

AM EBITDA evolution(indexed H1 ’07 vs H1 ‘06)

8.8%

3.6%

-2.1%

Plates

Auto

AM

AM Prices (HRC base 100 -average H1 ‘07)

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Global

footprint

Product

diversity

The largest R&D capability of the industry allowing us to launch

more new products than anyone and more rapidly

A broad range of specialties allowing a complete offering of

advanced solutions and products to demanding customers

Only truly global specialty player enabling us to serve customers

worldwide

ArcelorMittal key success factors in the specialty steel industry

ArcelorMittal: a unique player in the specialty steel industry

R&D

Size

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ArcelorMittal R&D …

• Over 1300 full time researchers

• Budget of more than USD 200 million

• #1 R&D in the industry

• Working on all development axes(Spending by finality)

• Expanding worldwide network of laboratories (currently 12 labs in Europe, North America, and South America)

… strongly supporting specialties

• 86% of R&D is focussed on the further development of specialty products

• R&D spending by product

The technological pillar of ArcelorMittal helping to transform tomorrow

37%

33%

30%Product

Process

Application 64%7%

6%

5%2%2%

14%

Automotive Stainless

Tinplate Plates

Wiredrawing Long Special

Other

ArcelorMittal superior R&D expertise

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Example: Continuous innovative flow forfuture products and solutions

• Ductile ultra-high strength steels

• Ultrafine grain steels

• Low density steels

• Steel matrix composites

• Material modelling

EDDQ

Composite

HSLA

Rm (Strength)

A% Elongation

0

200

400

600

800

1000

1200

1400

1600

0 10 20 30 40 50

E1/ρ

Crash

Formability

Recyclability

Weldability

Fatigue DP 600Composite SteelLow Density

MechanicalProperties

In-U

se P

ropert

ies

Breakthrough products proposed in coming years (2008-2011)

With enhanced in use properties

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Example: Modelling for efficient industrial operations & product development

Product design

Process/product

robustness

In-use properties

• crash

• fatigue• corrosion

• appearance

•…

Metal processing

• forming• joining

• cutting• painting

•…

Steel Process• global route

Material• microstructure &

mechanical characteristics

•surfaces

•defects

Process Efficiency

(Cost, Energy &

Environment)

Reverse engineering

Pre

dic

t in-u

se

pro

pertie

s3

3

1

2

4

Predictprocessing

behavior

1010/09/2007 Confidential 10

Heavy & Special Plates

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Heavy & Special Plates

Heavy Plates today …

• Shipments: 4.4mt* in 2006, 4.8mt* foreseen in 2008

• 14 plate mills on 3 continents

• Full range of products– Dimensions

• Up to 950 mm thick

• Up to 5 m wide

• Up to 90 tons weight

• Over 1mt/year of heat treatment capacity

• Own worldwide distribution network

• In addition, 51% ownership in Dillingen(2.4mt) and 37% in Hunan Valin (1.5mt)

–Grades

• Full range of alloy grades

• HSLA

* excluding Dillingen and Hunan Valin

… and tomorrow:

• Reopening of Gary Plate Mill in October 2007 will add up to 500,000t of capacity

• 150 M$ investment plan in Galati to improve quality and increase production from 1.5 to 2.4mt annually

• Gijon Plate mill to go to 800,000t (450,000t today) in 2009/2010

• Addition of 100,000t of heat treatment capacity in 2008

• Total production target in 2010 is 6.8mt –40% growth over 2007 !

A strong worldwide player with ambitious growth plans

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Example 1: Cryogenic Plates

Applications

• LNG storage tanks (9% Ni plates)

• Ethylene transportation ships (5% Ni plates)

Key points

• Low residual grade

• Difficult and very specific transformation with severe surface condition requirement

• Project management

Production Routes

• ArcelorMittal Industeel Belgium

• ArcelorMittal USA Coatesville and Coshohocken

Market Evolution

• Increasing international gas trade (and consumption), with an increasing share of LNG 6.8% annual growth rate

0

200

400

600

800

1000

1200

1400

2004 2010 2020

LNG Trade

Pipe Trade

Market structure for 9% Ni plate

• Global leader: ArcelorMittal:

• Competitors: ThyssenKrupp, Posco, JFE, Nippon Steel, Sumitomo Metals, Kobe, others

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Example 2: Armor & Navy Plates

Applications

• Armor steels for militaryand civilian vehicle protection.

• Structural steel for submarinehulls

Key points

• Process know-how: guarantee low thickness and flatness without residual stress.

• Metallurgical know-how: guarantee ballistic protection characteristics (impact resistance) conform to specifications

Production Routes

• ArcelorMittal Industeel Loire and Creusot

• ArcelorMittal USA Coatesville and Coshohocken

Market Evolution

• Increasing defense spending worldwide has led to a sharply growing market since 2001

• Projects concentrate on key geographic zones: 10 countries represented 81% of the 2005 world military defense expenditure, the USA representing 70%

Market structure for Armor & Navy Plates

• European leader: ArcelorMittal

• US leader: ArcelorMittal

• Competitors: Evraz, Essar, SSAB, ThyssenKrupp, others


Automotive

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ArcelorMittal Automotive

ArcelorMittal Automotive …

• Shipments: 17.4mt in 2006

• Worldwide No 1 supplier for automotive steels, more than twice as big as nearest competitor

• Competitors: Nippon Steel, ThyssenKrupp, US Steel, JFE and others

• Worldwide industrial presence via 37 coating lines in Europe, North America, South America, Africa

• Full range of products with worldwide catalogue availability

… will continue to grow

• Several new coating lines planned to satisfy growing worldwide demand

• Worldwide automotive steel consumption:

• Strong R&D and customer support activities to continuously improve our offerings

The undisputed leader in automotive steels

57.869.3

77.7

0

10

20

30

40

50

60

70

80

90

2000 2006 2010

Growth:+3% p.a.

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Example: AHSS

Why Advanced High Strength Steels*?

• C02 or Fuel regulations reinforce the need for weight reduction

• Improvement of crash resistance requires reinforcement of body structure

Key points

• The stringent product properties require the latest steel technology:

– Vaccum degassing, Laddle Metallurgy, Continuous Tandem Mill

– Continuous annealing and HDG lines with specific annealing equipment and thermal cycle

– Fully computarized processes, Automatic Surface Inspection Systems

Market Evolution

• AHSS usage will grow significantly

• Confirmed trend for all OEM. Example of Japanese Carmaker

* AHSS gathers all Multiphase Steels above 450MPa Tensile Strength

0

5

10

15

20

25

30

35

40

2000 2006 2012 2020

Nafta

Japan

EU

EM

BIW AHSS Usage (%)

Model New Model

Market structure for AHSS


• US leader: ArcelorMittal

• Competitors: ThyssenKrupp, US Steel, SSAB, AK Steel, others

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Example: ArcelorMittal technical support for AHSS implementation

• Dedicated technical teams located at customer premises to

– Identify customer needs

– Steer ArcelorMittal R&D projects

– Assess the value of ArcelorMittal support

• Design concepts proposals: Vehicle generic modules leveragingon ArcelorMittal technology

• Vehicle engineering supportto help the customer extract maximum value from ArcelorMittal product offer

• Product industrialization supportto facilitate the implementation of ArcelorMittal products into customer processes

5.1 Kg [13%]

5.1 Kg

[13%]

4.6 Kg

[12%]

22 Kg 22 Kg

[59%][59%]

5.8 Kg

[16%]

5.1 Kg [13%]

5.1 Kg

[13%]

4.6 Kg

[12%]

22 Kg 22 Kg

[59%][59%]

5.8 Kg

[16%]

1810/09/2007 Confidential

Special Flat & Long products

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Example: Special HRC for Energy Pipes

The product

• Hot rolled coil used toproduce spiral tubes forpipeline construction

Key point

• Technically demanding segment for “high tech products”: wide dimension, high gauges, technical metallurgical properties

ArcelorMittal position

• Continued strong growth thanks to capacity increases

• Product mix shifting to higher grades (61% of >X70 grades in 2006)

Market Evolution

• Energy pipes market is growing fast, driven by Oil & Gas production, and following the growth of worldwide GDP.

• Within this market, the Spiral tubes business is rapidly expanding due to its cost competitiveness

• ArcelorMittal has doubled its worldwide market share in this market within the last 5 years

0

5000

10000

15000

20000

25000

30000

35000

2003 2004 2005 2006 2007e

Pipelineconstruction(km)

0

500

1000

2002 2007e 2012P

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Example: Sheet Piles and Crane Rails

SHEET PILES

The product

• Sheet piles are used in the construction of harbours, bank reinforcement on rivers, for protection of excavations, as retaining walls, foundation structures, etc…..

Production routes

• ArcelorMittal Esch-Belval, Rodange, and Dabrowa

CRANE RAILS

The product

• Rails for cranes

• High tensile strength, possibility of online heat-treatment for improved physical properties

Production routes

• ArcelorMittal Rodange

AM

Market structure for Sheet piles


• NAFTA leader: ArcelorMittal

• Competitors: Salzgitter, Nucor, Chaparral, others

Market structure for Crane rails

• Global leader: ArcelorMittal

• Competitors: Corus, VoestAlpine, others


Conclusion

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Leading the specialty steel industry

� Question 3

� Which producer do you expect to increase its positions the most in speciality steel over the next years

� 1 – ArcelorMittal

� 2 – Nippon Steel

� 3 – US Steel

� 4 – ThyssenKrupp

� 5 – SSAB

Transforming tomorrow

�The leader of the speciality steel industry with 32mt of shipments

�The largest R&D capability of the industry in product development bringing a clear competitive advantage

�An ambitious growth plan in promising specialties


Q&A