2013-03-15 16:49:48 -
Luxembourg and New York, 15 March 2013 - ArcelorMittal is today holding its
2013 Investor Day, during which the Company will (among other things):
* Re-iterate its 2013 guidance
* Announce a new management gains improvement target of US$3 billion by the
end of 2015
* Set out a roadmap to a normalised EBITDA per tonne of US$150
* Confirm that the asset optimisation introduced in Q4 2011 is expected to
deliver savings of US$1 billion, the full impact of which should be seen in
* Confirm that the main components of asset optimization have now been
* Confirm a mid-2013 net debt target of approximately $17 billion and a
medium-term net debt target of US$15 billion; and specify that growth capex
and dividends will not be increased until this medium-term target has been
* State that it expects global apparent steel consumption to increase by 3 -
3.5% this year
* Set out the scenario for 40 million tonnes of potential demand recovery in
North America and Europe over the next 5 years
* Discuss its commitment to invest and grow its franchise businesses,
including mining and automotive
* Discuss its technological innovations that are intended to ensure it remains
the number one supplier to the major automotive manufacturers
* Discuss the Company's progress in increasing iron-ore production capacity to
84 million tonnes, including the Phase 2 expansion in Liberia and the
commencement of the Early Revenue Phase (ERP) for Baffinland in Canada
Presentations will be given by Lakshmi Mittal, Chairman and CEO; Aditya Mittal,
Chief Financial Officer; Gonzalo Urquijo, GMB member with responsibility for
Asia, Africa and the CIS (excluding China and India); Lou Schorsch, GMB member
with responsibility for Flat Carbon Americas; Peter Kukielski, GMB member and
Chief Executive Mining; Simon Wandke, Vice President, Chief Commercial Officer
Mining; and Brian Aranha, Vice President of worldwide automotive.
Full copies of the presentations can be found on the Company's website,
In his presentation, Mr Mittal, Chairman and Chief Executive, will introduce the
concept of what ArcelorMittal refers to as its "franchise" businesses;
businesses in attractive markets where the Company has a competitive edge.
Automotive, sheet piles, mechanical tubing, wide and heavy hot-rolled for high-
strength applications are all examples of franchise businesses. The Company is
committed to invest to grow and expand these businesses.
Automotive is a key franchise business. ArcelorMittal is the number one
supplier to all the major automotive manufacturers and will continue to make the
necessary investments in intellectual capital, plant and equipment in order to
maintain this. The global automotive market is forecast to grow by 24% from
about 80 million units in 2012 to over 100 million in 2017. ArcelorMittal is
well positioned to serve the automotive market with production facilities in the
NAFTA region, EU27, Turkey and South America. Additionally the Company's
commercial organisation covers all regions where its global customers have a
ArcelorMittal is the leader in high strength steels, which are vital to ensure
steel can maintain its position as the material of choice for the auto sector.
Brian Aranha, Vice President of worldwide automotive, will explain how the
Company is consistently expanding its Advanced High Strength Steels (AHSS)
offering. The S-in-motion program has developed a catalogue of solutions for
achieving up to 20% of weight reduction with existing products, designed to
satisfy the needs of vehicles produced up to 2020. The R&D program is already
working to develop the next generation of AHSS which will be required beyond
2020, for example simulating steel solutions that will be required to meet the
fuel economy targets of 54mpg in the USA and 95g/km co2 in Europe.
Peter Kukielski will provide an update on the mining segment - another important
franchise business. The Company has been steadily growing iron-ore shipments
since 2008 with an emphasis on growing marketable tonnes. There are two
significant steps remaining to reach its production capacity target of 84Mt by
2015 - expansion of ArcelorMittal Mines Canada and Liberia Phase 2.
The expansion at ArcelorMittal Mines Canada to a production capacity of 24MTPA
is expected to be completed in the first half of 2013. This required a $1.4
billion capex investment. The existing infrastructure has the potential to
support further expansion to 30 to 32Mtpa without significant additional capex.
This is currently under study.
Phase 2 in Liberia has now been approved by the Board of Directors. This
expansion will result in production capacity reaching 15MT pa in 2015 and will
require approximately $1.5 billion of capex. The result will be a higher
quality concentrate (66% Fe) compared to the current DSO (60% Fe). Major site
works have already begun at the port in Buchanan, including the installation of
a high speed ship loader.
In addition, the Company will provide an update on its Baffinland project. The
Early Revenue Phase, which requires less capital investment than the full
project, is now underway with a goal to reach a 3.5MT per annum production rate
by 2015. The budget for the ERP is approximately US$700 million and will
require the upgrading of the road that connects to the existing port in Milne
Inlet to the mine site as well modifications to existing permits that are
expected to be granted in 2013 and in the first half of 2014. Baffinland is a
high grade, 66% Fe direct shipping pellet and fine ore which requires no
processing or pelletization.
Commenting, Lakshmi Mittal, Chairman and CEO, said:
"Going forward we will protect and leverage our 'franchise' businesses as
as maintain a constant and rigorous focus on our costs and achievement of best
internal practice. These focal points, combined with our leading market position
in developed and emerging markets, our diverse mix of products, as well as our
world class customer service will enable us to be successful in this new
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,"
"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
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, 2012
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.
ArcelorMittal is the world's leading integrated steel and mining company, with a
presence in more than 60 countries.
ArcelorMittal is the leader in all major global steel markets, including
automotive, construction, household appliances and packaging, with leading R&D
and technology, as well as sizeable captive supplies of raw materials and
outstanding distribution networks. With an industrial presence in over 20
countries spanning four continents, the Company covers all of the key steel
markets, from emerging to mature.
Through its core values of sustainability, quality and leadership, ArcelorMittal
commits to operating in a responsible way with respect to the health, safety and
well-being of its employees, contractors and the communities in which it
operates. It is also committed to the sustainable management of the environment.
It takes a leading role in the industry's efforts to develop breakthrough
steelmaking technologies and is actively researching and developing steel-based
technologies and solutions that contribute to combat climate change.
In 2012, ArcelorMittal had revenues of $84.2 billion and crude steel production
of 88.2million tonnes, representing approximately 6 percent of world steel
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT),
Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona,
Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit: www.arcelormittal.com.
|Contact information ArcelorMittal Investor Relations |
|Europe + 352 4792 3198 |
|Americas +1 312 899 3985 |
|Retail + 44 203 214 2417 |
|SRI + 44 203 214 2854
|33 171 92 10 26 |
|Contact information ArcelorMittal Corporate Communications |
|Phone: +352 4792 5000 |
|ArcelorMittal Corporate Communications |
|Tobin Postma (Acting Head of Media Relations) + 44 20 3214 2412 |
| +44 20 7543 1125 |
|United Kingdom |
|Maitland Consultancy: |
|Martin Leeburn +
|44 20 7379 5151 |
|Image 7 |
|Sylvie Dumaine / Anne-Charlotte Creach + 33 1 5370 7470 |
 EBITDA is defined as operating income plus depreciation, impairment expenses
and exceptional items.
 Net debt refers to long-term debt, plus short term debt, less cash and cash
equivalents, restricted cash and short-term investments (including those held as
part of asset/liabilities held for sale).
 Source: LMC Automotive.
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Source: ArcelorMittal S.A. via Thomson Reuters ONE