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ArcelorMittal Italia

Realising the potential of Europe's lowest cost assetMatthieu Jehl, CEOMarch 19, 2019

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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

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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 latest Annual Report on Form 20-F

on file 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.

1

• From Ilva to ArcelorMittal Italia

• ArcelorMittal Italia: plan and priorities

• First 100 days and work in progress

– Health & Safety

– Environment

– Turnaround

– Integration

Agenda

2

ArcelorMittal Italia:A tier-1 asset, a perfect fit with ArcelorMittal’s strategy

* Source: Eurofer Market supply data 2018; **Iberia defined as Spain + Portugal

Italy: Second largest European flat steel consuming market (Mt)*

• Solid asset base: Taranto is the biggest

single-site integrated steel plant in Europe

• Increased geographical balance and better

presence in Southern Europe & Italy. A tier-

1 supplier to European & Italian customers

• Taranto is well positioned on the structural

cost curve and complemented by two high

quality finishing facilities

• Significant cost improvement potential and

synergies identified to drive value

• Able to leverage ArcelorMittal’s strengths in

R&D, product leadership and service

93.9 Mt

Total European Flat

steel demand 201820.9

15.4

10.77.9

5.7 5.6

PolandGermany Iberia**Italy FranceUK

3

ArcelorMittal Italia shipment product mix (Feb 2019)

TINPLATE

HRC

PICKLED

ANNEALED

3%

48%

27%

10%

9%

3%

HDG

HP

ArcelorMittal Italia: key deal milestonesMulti-year acquisition project concluded in November 2018

May 2018 Sept 2018 1 Nov 2018Sept 2018

Antitrust approval

from European

Commission

Enhanced

environmental

and social

commitments

Agreement with unions ArcelorMittal

takes over ILVA

operations:

renamed

ArcelorMittal Italia

2014 Beginning 2015 June 2017 Sept 2017

First

publication of

ILVA contract

notice

First

ArcelorMittal

offer

ILVA is assigned to

AM InvestCo,

contract signed with

Italian government

Environmental

law approved

Jan 2016

Second

publication of

ILVA contract

notice

4

ArcelorMittal in ItalyA fully integrated network

Novi Ligure

Cold rolling mill to serve

end-user customers (i.e.

automotive)

Genova

Cold rolling mill with hot

dip galvanizing capacity

Taranto

The largest single-site

steel making facility in

Europe

Strategically positioned

with a deep water port

3 production units

7 service centres including 5 within the joint

venture AMCLN*

13 distribution facilities including 12 within the

joint venture AMCLN*

5*Already existing JV between ArcelorMittal and CLN (shareholding: 49% ArcelorMittal Distribution Solutions Italia)

2 welded pipes facilities

ArcelorMittal ItaliaMain production units

6

Taranto

Primary and finishing facilities

• Deep sea port for vessels >320kt

• 4 Coke batteries in operation, 2 Sinter Plants

• 3 x 11m BFs in operations, 1 x 14m BF in

standby waiting relining

• 2 steel shops, 6 BOFs, 5 CCs

• 2 HSMs, 1 plate mill, 3 tube mills

• 1 Pickling line, 1 PLTCM

• 2 HDG lines (HDG #1 and #2)

• Integrated SSC for slitted coils/sheets

• Logistic integration (incl. seaport loading)

• 2 integrated power plants, Air separation units

• Mining activities for lime, 2 lime furnaces

Main products

HRC black; CR coils; HDG coils; HR steel plates;

Raw/coated welded pipe; Cut sheets and coils

Finishing facilities

• 1 PLTCM

• 2 HDG (HDG #3 and #5)

• Tin plate: CRM, 2 CAL, 1 tinning line,

1 tin free line

• Tin plate service centre

Main products

Cold rolled coils

Hot rolled pickled coils

Hot-dip galvanized coils

Electrolytic tinplate

Electrolytic chrome plate

Cut sheets and coils

Finishing facilities

• 1 PLTCM

• 1 CAL plus several BA furnaces

• 1 HDG (#4) exposed capable

• 1 AluSi line

• 1 ELO line

Main products

Cold rolled coils

Hot-dip galvanized coils

Electro-galvanized coils

Cut sheets and coils

Genova Novi Ligure

• Transportation and storage of Ilva’s raw materials and processed products are provided by an

infrastructure system comprising three sea terminals (Genova, Taranto and Marghera) from fleet of

five vessels

• Taranto plant served by over 200 km of rail network and 50km of roads

• Port of Taranto strategically located for Middle East and Black Sea Traffic. We operate 4 piers and

a wharf totalling 4,589m of quayside (draught up to 24m) and 691,300m of operating space

• The “Gemma” (very large carrier): at 330m long and 57m broad, is currently the biggest ever

registered in Italy, used to carry raw materials (up to 315,000t)

Leverage strong logistics and infrastructure

7

ArcelorMittal Italia: organisation

COO Primary

Stefan Van Campe

COO Finishing

Taranto

Philippe Aubron

COO Finishing

Genova / Novi Ligure

Giuseppe Frustaci

CPO

Emmanuel Rodriguez

CMO Italy

Carlo Malasomma

Head of Finance & Govt. Affairs

Samuele Pasi

Head of Human Resources

Annalisa Pasquini

CEO

Matthieu Jehl

Head of R&D

Nicolas Bontems

Head of Environment

Alessandro Labile

Head of H&S

Sergio Palmisano

Investment plan coordination

Henri-Pierre Orsoni

8

• From Ilva to ArcelorMittal Italia

• ArcelorMittal Italia: plan and priorities

• First 100 days and work in progress

– Health & Safety

– Environment

– Turnaround

– Integration

Agenda

9

Our vision for ArcelorMittal ItaliaA clear vision of long-term, sustainable success

10

• Significant environmental issues – need to

bring ILVA up to and beyond EU

environmental standards

• Industrial challenge: investment and

expertise to improve operational performance

of ILVA’s assets

• Poor financial performance: material

decline in revenue since 2011, loss-making

for the past 6 years

• Low share of high-value added steels in

the portfolio of ILVA

• Need to rebuild client confidence: product

quality, innovation, supply chain

• A company recognised for

environmental performance excellence:

emissions to be reduced to best practice

levels, in line with and beyond European

environmental standards and legislation

• Become a world-class player in terms of

competitiveness, sustainability,

environmental performance, value-add

• Leading presence in Italy, adding value

to the Italian industrial fabric

• A sustainably profitable company: one

that creates value for all stakeholders, and

the Italian economy

Yesterday Tomorrow

Investment plan to turnaround ArcelorMittal Italia

Capex commitment plan (€2.4bn)

• Comprehensive investment programme of c. €2.4 billion, and highly detailed industrial,

environmental and commercial plans

1.3

2.4

2.1

1.2

0.3

Environmental

2018-2023*

Industrial

2018-2024

Total capex

2018-2024

Capex funded by

ILVA SA (Riva)*

Net capex

*Additional €200m funds are available to cover cost of increased environmental capex, should additional reclamation of soil be necessary; i.e net spend to remain at €2.1bn 11

Three priorities of the plan:

Sustainability, Turnaround, Integration

Turnaround: buy - make - sell

Bring ArcelorMittal Italia

to Group profitability

level across its buy-

make-sell scopePerformance

and

profitability

Integration

Sustainability

and reputationHealth & Safety, environment, compliance

Bring ArcelorMittal Italia up and beyond

EU environmental standards. Rebuild the

public reputation of ArcelorMittal Italia

Key function/process

optimisation and alignment

Rebuilding and optimize

organisation, processes

and systems

12

Our approachClear actions and pathway to turnaround

Sustainability

and reputation

Performance

and profitability

Rebuilding and

Integration

Beg. Nov

Target setting and

planning.

Quick win launch

End 2018

Prioritisation and

implementation launch

(short cycles)• Priorities set and agreed

• Clear program structure,

masterplan

• Tracking and steering

2019

Turnaround

implementation• Projects realisation

• Ensuring positive

change

management

• Move to profitability

Beyond

Structural

continuous

improvement

towards

excellence

13

• From Ilva to ArcelorMittal Italia

• ArcelorMittal Italia: plan and priorities

• First 100 days and work in progress

– Health & Safety

– Environment

– Turnaround

– Integration

Agenda

14

• Group Health & Safety: Priority no. 1 in our

journey to “zero” Align the ArcelorMittal Italia

health & safety performance to Group standards

Sustainability and reputation: health & safetyFirst 100 days and work in progress

1.9

3.1

2.5

1.8

1.4

1.0

201520132008 201220102007 2009 2011 2014 2016 2017 2018**

LTIF* rate in 2018 for ArcelorMittal

* LTIF = Lost time injury frequency defined as Lost Time Injuries per 1.000.000 worked hours; based on own personnel and contractors; A Lost Time Injury (LTI) is an incident that causes an injury that

prevents the person from returning to his next scheduled shift or work period. Lost Time Injury Frequency Rate (LTIFR) is the number of Lost Time Injuries per million man-hours.

** Data does not include the LTIFR for Ilva, which came into the scope as from November 1, 2018; *** Data for 4 months from Nov 18-Feb 19 only15

0.810.850.780.820.85

0.69

Targets First 100 days and work in progress

• H&S progresses in a short period of time, but

LTIF*** (10.6x) is higher than Group average

• > 7900 trainees since Nov’18 (safety

leadership training, coaching, etc.)

• Review/ update Risk Assessment documents

• Fatality Prevention Audit to check Fatality

Prevention Standards (isolation, confined

spaces & gas hazard areas, HIRA, working at

heights, cranes & lifting, vehicles & driving,

rails, contractors)

• Introduce tool to check safety conditions

during non-routine & emergency activities

• Safety of machines and equipment

ArcelorMittal Italia LTIF

Nov18–Feb19 is 10.6x;

significantly

higher than group average

Sustainability and reputation: environmentPost investment ArcelorMittal Italia will be a global benchmark for the steel sector

Raw material yards

Zero dust emissions in

Tamburi from the raw materials

yards and conveyor belt before

the 1H 2020

€350m

Rain and waste water

treatment

Elimination of

run off polluted water

€160m

Coke plant revamping

Technology

best-in-class

€200m

Main areas of

intervention

16

Key elements of €1.2bn environmental capex plan 2018-2023*

• ~70 environmental projects are monitored ongoing basis Equivalent to ~€500k spend per day

Filter in the sinter plants

Dust, metals and dioxin

reduction to lower levels

than EU BAT

€35m

*Additional funds are to b recovered from Riva fund so net environmental spend is €0.8bn

Sustainability and Reputation: environmentImproved commitments

InterventionRequirements under DPCM*

2017

ArcelorMittal’s

commitments

Improved commitments

of summer 2018

Iron ore yard

coverage

• Start of the works required by

30.09.2018

• Completion within 36 months

from ArcelorMittal taking the

business (31.10.2018)

• Works started on

01.02.2018

• Planning to complete

within 24 months, by the

end of December 2019

• Work started 8 months earlier than

required.

• Expected to complete at least 22

months ahead of deadline.

Coal yard

coverage

• Completion within 36 months

from ArcelorMittal taking the

business

• Planning to complete by

the end of May 2020• Completion at least 17 months earlier

than required

Treatment of

the coke oven

gas

• Level of H2S content in the

coke oven gas below 500

mg/Nm3, with the exception

of during the annual plant

maintenance (20 days)

• Implementation of the

improvement of the coke

oven gas desulphurization

plant within 36 months

from ArcelorMittal taking

the business.

• Reduction of SO2 emissions

associated to the use of coke oven gas

at Taranto plant.

• Maintenance of the H2S level in coke

oven gas below 500mg / Nm3 even

during the 20 days of annual

maintenance.

Waste water

treatment for

the Blast

Furnaces

scrubbing water

• Compliance with new limits by

1st July 2020

• Built new waste water

treatment, applying in

house technology for which

a patent has been filed in

December 2017

• Anticipate future regulation by avoiding

the use of highly hazardous chemical,

formaldehyde.

• Tailor made solution: onsite testing with

ArcelorMittal pilot plant already in

November 2017

17* Decree of the President of the Council of Ministers

Sustainability and Reputation: environmentFirst 100 days and work in progress

✓ SH4 building closure

✓ PCI building closure

✓ OMO2 building closure

✓ Coking plant FC1 building closure and dedusting

✓ Dismantlement of the building sili cec of the cokes

and construction of the new conveyor belt NT2 as

by-pass

✓ Adjustment of temporary waste area in operation

✓ Construction of mobile hoods at GRF

✓ Dredging of the branch 1 of the discharge channel

number 1

✓ Waterproofing of the full landfill G2 in the Mater

Gratiae area

✓ Environmental investigation in the area of former

seized sleepers

✓ Environmental investigation in the area of former

seized tires

✓ Demolition of the S3 tank

✓ Pump & treat stockyards system

✓ Adjustment of the monitoring systems to the partial

discharges

Pavement of BF slag yard

Investments at coke batteries

Conveyor belts enclosure

Dismantling BF3

Sinter yard coverage ordering for south and north

Intervention for collection and treatment of rain

water

Primary raw materials yard coverage

Completed by December 31, 2018 Work in progress

18

PCI building

SH4 building

Raw materials yard coverageA unique project in Europe

Starting of

excavation

activities on

iron ore

yard

Installation of

foundation poles

on the iron ore

yard and

assembling of the

erection piers

Completion of

the first arch

of the shed

Feb 1, 2018 May 2018 4Q 2019 May 2020Dec 2018

Completion of

the iron ore

yard (first

phase)

Finalisation

of the coke

yard (first

phase)

Today

Yesterday

Tomorrow

19

Feb 2019

First section of

six roof arches

completed

Turnaround: buy – make – sell First 100 days and work in progress

Buy

Make

Sell

Leverage on Group’s size and experience

• Continuity ensured on transferred contract and orders

• Access to ArcelorMittal contracts for all categories, starting with raw materials

• Enter into new partnership in full transparency

• Rationalize procurement strategy, so far driven by cash constraint and not cost

performance

Italy is a big and dynamic market, ArcelorMittal Italia is the relevant local producer

• Implementation of Group’s commercial approach and internal policies

• Align service and quality reputation to ArcelorMittal’s standards through an enlarged

and improved range of products (also through our new R&D centre in Taranto)

• Commercial impact on track, starting to get some results in general industry, not yet

automotive we have secured some high level contracts and regained some

customers ILVA had lost

Turnaround of underperforming assets

• Ensure business continuity: raw materials, maintenance and repair

• Maintenance: accelerated plan for continuous casting segments

• Nov 2018: Restart production of plate mill and hot rolling mill #1

• Main operational priorities are being set up per area for proper industrial turnaround

20

Performance and profitability: industrial planExtensive program initiated across business to improve performance

Key investments in €1.3bn industrial capex plan 2018-2024

21

• Industrial capex plan with commitment to invest €1.3bn by 2024; including investment in BF#5 to

increase production from 6Mt to 8Mt upon completion of environmental plan

Eur

1.3bn

Mechanical and automation

upgrade for finishing

production tools

Maintenance of HSM, plate

mill, annealing and CRM

Rolls

Continuous caster

revamping

Hot stoves BF1 and BF4

BF1 heart repair

Hot stoves

BF1 and BF4

Steel shops (converters

and chimneys repair)

Energy efficiency

Product development /

enhancement

BF5

• Jan 2019: workforce complete with headcounts

of 10,700 (>8,200 employees in Taranto)

• Group mobility

• Filled positions with new colleagues or

ArcelorMittal people to provide new

competences to the organization

• Industrial relations: build new social dialogue

forums, EWC

• Integration of ArcelorMittal Group HR

processes (evaluation, KPIs, …)

• Definition of a training plan by role/function

• Promote personal development through a

culture of individual responsibility,

entrepreneurship and proactivity

Integration: HRFirst 100 days and work in progress

14,000

10,700

Old ILVA ArcelorMittal Italia

-24%

Headcount (FTE)

22* Based on crude steel per employee; ArcelorMittal estimates

**Between 2023 and 2025, the Company has committed to hire any workers who remain under Ilva’s extraordinary administration

Integration: Communication & CRFirst 100 days and work in progress

• Dedicated channels for 2-way dialogue with our

people for their engagement

– Employees = first ambassadors of the company

and its culture

• Transparency, accountability and continuous

dialogue with our stakeholders

– STK mapping: 150 + organisations identified and

ranked according to relevance/influence

– Stakeholder meetings and dialogues

– Reporting

• Build and sustain the reputation: community

investments are a key to meet and win this

challenge

– Criteria developed to identify best projects

– 20 + requests received: first community investment

projects ready to be launched by April 2019

23

Integration: new R&D laboratory in Taranto

Creation during the first

18 months after

takeover

€10 millions

20Researchers min.

Link with local

schools &

technology

institutes

• To support ArcelorMittal Italia growth by boosting Global R&D process solutions roll-out and by

transferring know-how of the Group

• To support ArcelorMittal Italia growth by boosting the copy-engineering of product mix

• To develop new process & products technogical solutions, with a particular focus on the

improvement of the environmental footprint of the steelmaking processes

• To focus on the continuous improvement and update of technologies & know-how

24

Integration: Group supportFirst 100 days and work in progress

25

• Use of internal benchmarks in the

Group to guide actions to improve

industrial KPIs

• Operating practices and processes to

turnaround the Italian business

• ArcelorMittal experts with extensive

experience in different sites, stationed

on ground in Italy to support and guide

Italian colleagues in their improvement

actions

• “Twinning” from rest of ArcelorMittal

Europe to provide more dedicated

support for improvement and product

development

“It is a great pleasure and honour

to be part of the recovery of this

plant together with a team who has

positive spirit to restore its

potential”Stefan Van Campe, COO Primary

“The turnaround of ArcelorMittal

Italia is a once in a lifetime

experience and one of the biggest

challenges for the Group. That’s

why I am expecting a very big

challenge from a professional point of

view, in collaboration with some of

the best experts from the Group” Jef Queeckers, Supply Process Engineer

c

Testimonials from Italy

“Having the opportunity to work in the biggest European steel plant is such

a challenge and I feel privileged to experience this in my career. I strongly

encourage everyone to take advantage of the opportunity to move

across sites and countries. It’s scary to get out of our comfort zone, but you

won’t believe me how scary it is to even think of getting back to it”

(Luciene Caberlin, Energy Manager)

“Discover a new plant, consolidate my technical skills, increase my professional

network, being part of a new team, increase my responsibilities. But on top of

those “professional” expectations, I have also some personal ones: offering to my

family the possibility to live in Italy, discovering a new culture, a new language, a

new cuisine, a new way of living: the famous “dolce vita”. Such a project will work

only if you have that double expectation”

(Antoine Dhennin, Head of Automation)

“I accepted because I felt great the call of a very big challenge. Apart from the

transfer to Taranto, build the Research Centre from scratch, identifying the

people, the structure, the research programs. A very exciting challenge because it

contains an aspect of social responsibility that I like. It has a useful target for the

ArcelorMittal Group, Italy, Puglia and Taranto”

(Nicolas Bontems, Head of R&D Centre)

26

Wrap up, our way to EBITDA accretive

2018

EBITDA

Positive

Year 1

FCF

Positive

Year 3

Performance in

line with AM

Europe levels

Production from 6Mt to 8MT; BF#5 ramp up

Procurement synergies

2019 2020 2021 2022 2023 2024

Key Improvement Drivers:

Procurement synergies

Commercial synergies

Operational synergies

Increase production to 6Mt

Key Targets

Increase production to 8Mt

Improve downstream utilisation and mix

Continuous improvement plans

Complete Environmental capex program

27

Key takeaways

• ArcelorMittal Italia target to be the lowest cost site in Europe with full complement of

downstream capabilities

• H&S performance is a priority

• Operationally, we began from low point given delay in acquisition closing; more short

term challenges, yet long term potential remains robust. On track to hit 6Mt this year

• We are on time with our environmental investments which are the key to enabling an

increase in production to 8Mt to generate further fixed cost savings

• Buy, make, sell is ArcelorMittal Italia’s key business philosophy and where €310m

synergies will be captured

• Progress on commercial approach despite challenging market environment

• Employee engagement is positive with ongoing development

• On track to achieve Financial targets set at time of acquisition: EBITDA positive year 1

and FCF positive year 3

28

Thank you for your attention

Genoa HDG Line Taranto