Global Opportunities for Growth : Viewpoint of a Specialty Plate Producerp y

February 2010

Summary

• Industeel within ArcelorMittal• Industeel within ArcelorMittal

• Forecasts

• Focus on future developments

1

Industeel within ArcelorMittal

2

ArcelorMittal leading the steel industry g y

60

Crude Steel production in 2009 9M (MT) Sales in 2009 9M (US$ billion)*

Em erging dom estic

40

50

60

AsiaROW

dom estic31%

EU-1537%

10

20

30

Asia

US & Canada

Export to em erging

14%

0

10

ArcelorMittal Hebei Iron &Steel Group

Baosteel Posco JFE Nippon Steel

16%

7%

24%

EU15

Canada18%

%

287,000* employees in more than 60 countries

15%

9%

Rest EU (EU27)Other European countriesNorth AmericaSouth AmericaAsiaAfrica

3

15%

12%

Africa

Industeel/Coatesville within ArcelorMittalIndusteel/Coatesville within ArcelorMittal

4

Industeel : a long history…

June 2007

g y

Marrel FrèresChâteuneuf 1865

Usine SchneiderLe Creusot 1836 1998 2000 2002 2006

Fabrique de Fer

• a history of providing quality products • a capacity for Research and Development • one same team (commercial and technical)

Fabrique de FerCharleroi 1863 the widest range of

special plates products for a better service to your projects

5

INDUSTEELSPECIAL STEEL SOLUTIONS

Industeel : 3 Production plants

Brussels CharleroiIndusteel Belgiumg

Le CreusotParis

More than

Le CreusotIndusteel Creusot+ Research Center

More than 40 agenciesWorldwide

Turnover 2008

Chateauneuf& Euroform

Industeel Loire

LYON

Turnover 20081.5 billion Euros.

6

IndusteelIndusteel

Industeel : Product overview

Stainless & Clad steels

Moulds & Tools steels

Austenitic, ferritic, H. Resist.Uranus® duplex, superduplexCarbon + stainless clad

Cryogenic steels

Superplast ® 300 - 400Tenasteel ®

Weary g

Cryelso® 9% Ni, 5% Ni,Cryelso® 36% Ni

Pressure Vessel &

Wear resistant steelsFora 360 - 400 – 450Creusabro ® 4800 - 8000

Pressure Vessel & Structural steels Cromelso ®Cr Mo, CrMoVCMn HIC 3 5%Ni

High Strength steelsCarelso ® 690 – 960 Q -

CMn HIC, 3,5%Ni

Jack up rigsSuperelso ® 500 Superelso ® 690CR

Protection steelsMars ® 190 – 240 - 300

7

Superelso ® 690CR

Industeel : Markets

2008 sales volumes

PROJECTS65%

others8%construction

oil & gas30%

8%6%process

6%DISTRIBUTION35%

assembly industry

14%

chemistry petrochemistry

21%

industrial abrasion

15%

8

• Geographical split: 44% Europe, 25% Asia, 19% North America, 12% Others

Forecasts

9

The economy in 2009 tough timesThe economy in 2009 – tough times…

10

2010 : things are looking better?g g

Oxford Economics Forecast Dec 08

81012

% GDP world

246

wth

rate

% GDP worldGDP europeGDP china

-202

Gro

w

-42008

12008

2 2008

32008

42009

12009

22009

32009

42010

12010

22010

32010

4

Q t

11

Quarter

2010 global growth lifted by emerging markets

12

But annualised Quarterly OECD growth weaker in H1’10 than H2’09

ArcelorMittal production is on the up…

ArcelorMittal quarterly crude steel production (million tonnes)

30

35 Estimated crudesteel production

15

20

25Realised crudesteel production

0

5

10

6 6 6 6 7 7 7 7 8 8 8 8 9 9 9 9

Q1 2006

Q2 2006

Q3 2006

Q4 2006

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

13

Stainless Steel plate production is expected to increase

1200

expected to increase

1000

1100

700

800

900kT

500

600

700economicdownturn

stronginvestments

economicdownturn

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

14

Industeel estimate , Quarto only

Steel Pricing has stabilisedSteel Pricing has stabilised…

300

220240260280

April 1994 = 100

140160180200

80100120140

5 6 7 8 9 0

j-05

m-0

5

s-05 j-06

m-0

6

s-06 j-07

m-0

7

s-07 j-08

m-0

8

s-08 j-09

m-0

9

s-09 j-10

m-1

0

Carbon Steel Stainless Forecast Forecast Source:

15

Forecast Forecast CRU Monitor indexes

Exchange rates remain volatile…g

16

What about the markets?

17

Focus on Future Developments

18

Capture growth in key emerging marketsmarkets

ArcelorMittal key emerging markets currently targeted for growth

19

Oil & Gas

20

Brent crude oil

Heading towardsHeading towards 80$

2121

Oil & Gas projects : example of jack-up rigsj g

80

90

120

140No. of Jack-ups Forecast (*) Brent price ($/bbll)

40

50

60

70

de ja

ck-u

p

60

80

100

/bar

il

10

20

30

40

Nbr

e d

20

40

60 $/

Phase 1Offshore booming

Phase 2 In the doldrums

Phase 3Peak Energy 2012Phase 4

The Future

0

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

0

Offshore booming In the doldrums gy

Non OPEC production growthOil prices drifted between $10-25 per barrel Offshore drilling rigs yielded very low returns

Strong structural growth in Asia should lead to continued strong world macro-economics.Offshore rigs should continue to enjoy relatively strong marketsin the years to come given our

The FutureGrowth in world increased Consumption of Oil increased from 66 to 85 mill bbl per day and Oil price reach $65 per barrel Energy supply chain nearly disintegrated due to 15 years of neglect

High Oil prices were driven by decisive Cuts in OPEC production pushing demand for exploration and production assets

22

y gassumption of firm energy markets over the next few years.

y g

(*) Base case based on new jack-ups likely to be built to replace the oldest

Development of LNG tradeDevelopment of LNG trade

23

source: International Energy Agency

LNG projects in developing countries

24Oil and Gas Customers and Linepipe Suppliers meeting April 6, 2009 24

Strong development of CRA linepipe (solid, clad)

Global line pipe construction forecast 2007 to 2010

All grades and sizes Corrosion Resistant Alloys (CRA)line pipes all sizes

CRA

1200

1400

1600 CRAHICRSSCS

100

120 EUAmAfr.AsiaME

600

800

1000

kilo

tons

40

60

80

kilo

tons

MERuss

0

200

400

0

20

40

25

02007 2008 2009 2010

year

02007 2008 2009 2010

year

Source: EEW

9%Ni for conventional LNG tanks9%Ni for conventional LNG tanks

(Industeel data – 9%Ni for LNG storage tanks)

26

New Developments - FLNG p• Floating LNG facility, "new" concept to better exploit gas

resources

Shell concept (vessel is 400m+ long)

27

Refining – New developmentsg p

28

GTL/CTL principles

ifi f ( )29

source: SASOL

gasifier furnace (syngas)

Biofuels

Brazil

China

China

Bioethanol in the USA Brazil EU

30

Bioethanol in the USA, Brazil , EU

Biodiesel mostly european

31

Power Plants outlookPower Plants outlook

• 1000 MW of power generation capacity construction every 3 days (1 p y y y (nuclear reactor equivalent)

• coal (direct firing) and gas (combined cycle, heat from gas turbine exhaust) h th li ’ h fhave the lion’s share of new constructions

Coal power plant is 50% of new capacity

32

Power plant : Coal

33

Power Plant - Nuclear

• Revamping and new building nuclear New reactors planned (cumulative)reactors will almost double every 5 years.

228

336

3066

103

2005/2009 2010/2014 2015/2019 2020/2024 2025/2028

Source : World Nuclear Status Report 2007

34

New nuclear reactors worldwide

35

With new nuclear technologies

New Reactor Designs

AP600,1000

36

Special Stainless for Potable Water

These Monovar valves for New York City Waterfor New York City Water use 4’’ to 5’’17-4-PH platesCourtesy of GRISS SAPAG

37

Stainless : development of Duplex

2507

ngth

22022304

2205

2507

Yie

ld S

tren

904L6Mo

Y 904L316L304L

Corrosion Resistance

38

Flue Gas Cleaning –W t S bb i D l d S d lWet Scrubbers in Duplex and Superduplex

•Duplex supplied for 40 scrubbers in US FGD market since 2002

39

Desalination market

Western Europe

South Asia

North America

Middle East & North Africa

Latin America & Caribbean

East Europe & C t l A iCentral Asia

East Asia & Pacific

Sub-Saharan Af iAfrica

• strong capacity increase in Middle East and North Africa

40

strong capacity increase in Middle East and North Africa

• potential increase in Asia after 2010

Source: GWR 2007

Desalination : Use of Special Stainless Steels

LOCATIONLOCATION TRADITIONAL MATERIALTRADITIONAL MATERIAL OPTIMIZED MATERIALOPTIMIZED MATERIAL

Water intake + grids Concrete/carbon steel UR45 N+/ 47N+/52 N+

Feed water pipes Coated Carbon steel UR47 N+/52 N+

LOCATIONLOCATION TRADITIONAL MATERIALTRADITIONAL MATERIAL OPTIMIZED MATERIALOPTIMIZED MATERIAL

Feed water pipes Coated Carbon steel UR47 N+/52 N+

Brine heaters Titanium, CuNi URB66 ?

Condensers CuNi Titanium 6 Mo or UR47 N+/52 N+Condensers CuNi, Titanium 6 Mo or UR47 N+/52 N+

Flash chambers 316L UR 45 N

Internals 316L Ti UR 45N/UR 47 N+Internals 316L Ti UR 45N/UR 47 N+

Supporting frames Coated CS UR 35N

41

GeothermalDRY STEAM power plants• DRY STEAM power plants

Oldest type , simple ,economic But few sites available

• FLASH STEAM power plantsFLASH STEAM power plants

Use water above 180°C Steam produced as pressure drops Most common type today in active geothermal areas

• BINARY CYCLEUse water from 105°C to 180°C Heat transferred to low boiling fluid

42

gCan be used in less active areas

GeothermalIn active areas, corrosion and scaling is a big issue regarding materials STAINLESS or CLAD pipes , stainless vessels

Replaced with 2507

43

NEW INVESTMENTS ?Tidal Energy

NEW INVESTMENTS ?

Limited number of sites for big tidal projects

HIGH INVESTMENTS COSTS

VISIBILE IMPACT on landscape

Possibly associated with infrastructures ( car , rail bridges …)

OTHER OPTIONS ?

Tid l fTidal energy farms

Similar to windmills

Small unit cost

Invisible

44

Solar EnergySolar reflectors

CR stainless

1 solar tower

concrete

2 concentrator

stainless, CRA

3 steam vessels pipes3 steam vessels, pipes

stainless ( 347H)11MW Solucar plant

45

4 turbines Sevilla,Spain

85% f t d f t l b t t / it t

Wind Energy 85% of towers are made of steel but concrete/ composite towers are gaining acceptance

Tower systemsTower systems

Steeltube

Prefabconcrete tube

In-situconcrete tube

HybridSteel/Concrete

SteelLattice

y

Steeltube

Prefabconcrete tube

In-situconcrete tube

HybridSteel/Concrete

SteelLattice

y

SteelSteelSteelSteel

Con-crete

60m

Con-crete

60m

Con-crete

60m

Con-crete

60m

Vestas (DK), Gamesa (ES),

Enercon (DE)…

ATS (NL), …

SeeBA (DE), Airwerk (DE),

Enercon (DE)…

crete35m

crete35m

crete35m

crete35m

46

Enercon (DE), Tower Tec (DE)

Architecture : Bridges, StructuresArchitecture : Bridges, StructuresFootbridge

Piove Di Sacco Bridge

Stainless steel swimming pool

47

Architecture : BuildingsArchitecture : BuildingsFondation Louis Vuitton project

Abu Dhabi museum project

Le Mt St Michel barrage The Spire of Dublin

48

Les Bons EnfantsThe Spire of Dublin

Architecture : Monuments

To Those Brave Men Omaha Beach, Normandy Duplex UR 2205 / 316L

49

Duplex UR 2205 / 316L

INDUSTEELthe widest range of special plates products f b tt i t j tfor a better service to your projects

50