HY1 2012 Agenda ArcelorMittal South Africas standing Process Main - - PowerPoint PPT Presentation

ArcelorMittal South Africa Vanderbijlpark Works

HY1 2012

1

Agenda

• ArcelorMittal South Africa’s standing
• Process
• Main Industries
• Sales
• Corporate Responsibility

2

A Committed South African Citizen

• ArcelorMittal South Africa’s long standing commitment to South Africa will continue

– Approximately ZAR16bn invested since 2001/2 including the payment of R2,8 billion for the undivided share

• f the mining right over Sishen and R9bn in Capex over last six years
• Major employer committed to sustainable job creation

– 9, 886 employees in South Africa, with an additional 2,500 on contract – Despite market meltdown, no job losses in workforce

• ArcelorMittal South Africa remains fully committed to complying with all BEE legislation
• ArcelorMittal South Africa has an outstanding social development programme

– Contributes in the form of bursaries to engineering students, specifically at math & science facilities – Development program for black engineering firms successfully launched – Building of schools across the country

• World class safety initiatives underway at all South African operations
• Local industry being comprehensively supported in supplying the requirements of the public sector

infrastructure development program

• The Department of Labour has recognized ArcelorMittals position of pre-eminence in the technical

skills development arena

3

ArcelorMittal in South Africa

Flat Steel Products shipped*

• Vanderbijlpark Works – 2 478 kt
• Saldanha Works – 941 kt

Long Steel Products shipped*

• Newcastle Works – 947 kt
• Vereeniging Works – 337 kt

Iron ore procured*

• 4 584 kt from Sishen
• 1 409 kt from Thabazimbi
• 650 kt others

Coke & Chemicals shipped*

• Coke – 631 kt
• Tar – 118 kt

*12 months to December 2011

HR issues*

• Full time employees 9 886 for the year
• Employees per million tons prod = 1 813
• Revenue per head R3.2m (US$0.4m)

Vereeniging Works Johannesburg Newcastle Works Sishen Vanderbijlpark Works Thabazimbi

South Africa

Saldanha Works Cape Town Durban Steel plants Captive iron ore source

4

Flat carbon steel - Vanderbijlpark Works

H1 2012

• Liquid steel production (‘000 tons)

1 281

• Sales tons

1 208

• Domestic percentage of total sales

86%

• Domestic percentage (excl SS)

80%

• Manpower

4 797

• Area of site

2 300 Ha

• Perimeter

20 km

• Rail networks

256 km and 34 locomotives

• Electricity consumption

5,49 GWh per day

• Primary raw materials received

16.7kt per day

• Secondary raw materials received

6.6kt per month

• Fresh water consumption

3.1 mega liters per day

Hot rolled Hot rolled coil Rolled profiles Rolled profiles (Vereeniging) Heavy Plates

• thin and ultra thin

Special profiles (Pretoria) Cold rolled Forged products (Pretoria & Vereeniging) Coated Seamless tubes (Vereeniging)

• Galvanised

Directly reduced iron (Dunswart)

• Painted
• Tinplated

Coke batteries

• Pretoria
• Vanderbijlpark
• Newcastle

50%

• Vanderbijlpark

50% Tar plant

• Vanderbijlpark

Export marketing Shipping 40% 50% 50% 50% Can Reclamation Wire drawing Vanderbijlpark Works Saldanha Steel (Pty) Ltd Flat steel products Long steel products Newcastle Works Vereeniging Works ArcelorMittal South Africa Limited ArcelorMittal Coke & Chemicals Joint Ventures Collect a Can (Pty) Ltd Mr Eric Samson Anglo American Ltd Nampak Ltd Consolidated Wire Industries (Pty) Ltd Macsteel International (Pty) Ltd

5

Company Structure

Diversified primary steel producer

60%

Vanderbijlpark Works Management Team

Gerhard Moolman Work Manager Iron Making Erwee Lourens Works Manager Coke Making Albert Swanepoel Works Manager Cold Rolling Pierre Joubert Works Manager Engineering Chris van Dijk Works Manager Central Mainte= nance Services Wynand Scholtz Manager Production Planning & Logistics Cobus Muller Manager Quality Management Corne Muller Manager Finance Dieter Sauer Manager SHERQ

General Manager Vanderbijlpark Works

Dirk Odendaal Manager Information Management VDB & MCC Werner Venter Works Manager Hot Rolling Hayder Dalwai Manager Human Resources Christo Greyling Manager Business Improvement Koos Geldenhuys Works Manager Steel Making

Vacant

7

Vanderbijlpark Works Process Configuration

8

Production and sales history

200 400 600 800 1000 2007 2008 2009 2010 2011 2012

(000t)

Export sales Local sales Liquid steel production

Production and sales history

9

695 614 584 601 608 716 713 386 405 421 490 465 520 555 474 370 528 538 522 451 532 458 25 19 65 113 38 26 12 63 53 62 85 26 54 129 33 187 133 32 55 63 22 62 81 82 79 67 76 75 54 19 103 49 70 35 62 74 89 59 103 73 78 84 66 69 741 612 859 797 851 952 997 428 555 653 606 828 780 789 692 608 784 845 732 754 691 590 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12

Sales vs LS Production

t'000 Local Prime Export Prime Non Prime Total Liquid Steel

10

Domestic Sales: Prime Volume H1 2012

Cold Rolled 13% Colour Appliance 1% Colour Normal 4% Electro 4% Hot Dipped 14% Hot Rolled Coils <= 1.5 mm 0% Hot Rolled Dry 41% Hot Rolled P&O 7% Hot Rolled to DSP 1% Plate Normal 4% Q & T Plate 0% Tin 6% Tin DWI 5%

11

Domestic sales: Prime Volume per segment H1 2012

Automotive 11% Building Exterior - Roofing & Cladding 15% Civil Engineering 18% Converters & Re- rollers 1% Domestic Appliances 11% Machinery and equipment 1% Other Transport 5% Packaging 11% Pressure Vessel 3% Primary Transformation. 23%

Africa 100% Asia 0%

12

Export Sales: Prime Volume per Segment H1 2012

Cold Rolled 27% Colour Normal 0% Hot Dipped 13% Hot Rolled Coils <= 1.5 mm 19% Hot Rolled Dry 41%

13

Financial history

• 20%
• 10%

0% 10% 20% 30% 40% 50%

• R 1,000

R 0 R 1,000 R 2,000 R 3,000 R 4,000 R 5,000 R 6,000 R 7,000 2007 2008 2009 2010 2011 2012

(milj)

Revenue Operating profit Margin

14

Implementing a Corporate Responsibility strategy

Human Resources

• Health & Safety
• Equitable

employment practices

• World class

training and skills development

• Human Rights

Protection Human Capital Commitments Environmental Commitments

• Environmental

compliance and legacy issues

• Waste disposal
• Ground water and

air quality

• ISO 180001

Environment

• Local economic

development

• Social and

community uplift- ment and sustainable investment

• Community

engagement Social Commitments

Communities

Corporate Governance and sustainability reporting

• Board

independence

• Equal rights

among shareholders

• Best in class

disclosure and shareholder dialogue

Shareholders

Questions