PRINCIPLES OF GLOBAL BUSINESS AND MANAGEMENT DIARY COMPANY NAME-ARCELOR MITTAL SUBMITTED BY ANUJ SEHGAL SEC E A1802011363

History ArcelorMittal is a successor to Mittal Steel, a business founded in 1989 by Mr. Lakshmi N. Mittal, the Chairman of the Board of Directors and Chief Executive Officer of ArcelorMittal. It has experienced rapid and steady growth since then largely through the consistent and disciplined execution of a successful consolidation-based strategy. Mittal Steel made its first acquisition in 1989, leasing the Iron & Steel Company of Trinidad and Tobago. Some of its principal acquisitions since then include Thyssen Duisburg (Germany) in 1997, Inland Steel (USA) in 1998, Unimetal (France) in 1999, Sidex (Romania) and Annaba (Algeria) in 2001, Nova Hut (Czech Republic) in 2003, BH Steel (Bosnia), Balkan Steel (Macedonia), PHS (Poland) and Iscor (South Africa) in 2004, ISG (USA), Hunan Valin (China) and Kryvorizhstal (Ukraine) in 2005, three Stelco Inc. subsidiaries (Canada) and Arcelor in 2006. Arcelor was created in February 2002 by the combination of three steel-making companies: Aceralia Corporacin Siderrgica ("Aceralia"), Arbed and Usinor, to create a global presence in the steel industry. At the time of its acquisition by Mittal Steel in 2006, Arcelor was the second largest steel producer in the world in terms of production, with 2005 production of 46.7 million tonnes of steel and 2005 revenues of 32.6 billion. It operated in all key end markets: the automotive industry, construction, household appliances, packaging and general industry. Arcelor enjoyed leading positions in Western Europe and South America, in particular due to its Brazilian operations. In 2007, ArcelorMittal continued to pursue a disciplined growth strategy, with a total of 35 transactions announced in Argentina, Austria, Canada, China, Estonia, France, Germany, Italy, Mexico, Poland, Russia, Slovakia, South Africa, Turkey, the United Kingdom, Uruguay, the United States and Venezuela, a number of which were completed in 2007. During 2007, ArcelorMittal also announced or completed buy-out offers for minority interests in certain of its subsidiaries in Argentina, Brazil and Poland. ArcelorMittal also initiated development plans for its greenfield projects in India, Liberia and Senegal and announced new

prospective development projects in Mauritania, Mozambique, Nigeria, Russia, Saudi Arabia and Turkey. During the first eight months of 2008, ArcelorMittal continued making investments, with significant transactions announced in Australia, Brazil, Canada, Costa Rica, France, Russia, South Africa, Sweden, Turkey, United Arab Emirates, the United States, and Venezuela, the majority of which have been completed. During the last four months of 2008, ArcelorMittal largely suspended mergers and acquisitions and other investment activities in light of the deteriorating economic and market environment. ArcelorMittal has proven expertise in acquiring companies and turning around under-performing assets and believes that it has successfully integrated its previous key acquisitions by implementing a "best practices" approach in operations and management to enhance profitability. Since the acquisition by Mittal Steel of Arcelor, a company of approximately equivalent size, the combined company has reached significant milestones in its operational integration process ahead of schedule, having consolidated support functions, optimised its supply chain and procurement structure and leveraged research and development services across a larger base, thereby achieving cost savings and revenue synergies, as well as other synergistic benefits. As of 31 December 2008, ArcelorMittal had fully realised its targeted $1.6 billion in synergies from the merger. ArcelorMittal has grown through the acquisition of numerous steel-making and other assets, which currently constitute its major operating subsidiaries. More recently, ArcelorMittal's acquisitions have been concentrated on vertical integration (i.e., acquisitions of raw material producers or production sites). ArcelorMittal's principal investments and acquisitions (including Greenfield projects), during the year ended 31 December 2008, are summarised below. The bulk of these acquisitions and investments were made prior to the sharp downturn in the steel market starting in September 2008. Since then the Company has sharply curtailed its M&A and investment activities and placed under review as a general matter its investment projects involving significant capital

expenditure, including those summarised below and those announced in prior years. Many of these projects, particularly "Greenfield" projects, (i.e., new-build construction projects) and large "Brownfield" projects (i.e., expansion or improvement of existing sites) are in any case subject to the receipt of various regulatory approvals without which implementation cannot begin. As discussed more fully in "Item 5-Operating and Financial Review and Prospects-OverviewInitiatives in Response to Changing Market Conditions", the Company has sharply reduced its anticipated capital expenditures for 2009 to $3 billion, of which $2.5 billion is for maintenance.

History of Mittal Steel Mittal Steel's growth was founded on a consistent philosophy: that to be able to deliver the range and quality of products customers demand the modern steel maker must have the scale and worldwide presence to do so competitively. The group was formed when two sister companies in the Mittal family, LNM Holdings and ISPAT International, were merged to form Mittal Steel in 2004. Mittal Steel Growth Timeline 2005: Acquisition of a stake in Hunan Valin > ISG Acquisition completed > Mittal Steel Europe created > Mittal Steel makes Fortune 500 list of top companies> MDA with Liberian government > Acquisition of Kryvorizhstal > MoU with State of Jharkhand, India > Acquisition of Stelco subsidiaries > Stake lifted in Mittal Steel Zenica 2004: Acquisition of Polski Huty Stali > Acquisition of BH Steel > Acquisition of Macedonian facilities from Balkan Steel > Creation of Mittal Steel and proposed acquisition of International Steel > 2003: Acquisition of Nova Hut 2002: Business assistance agreement signed with Iscor

2001: Acquisition of ALFASID > Acquisition of Sidex 1999: Acquisition of Unimtal 1998: Acquisition of Inland Steel Company 1997: Ispat International NV goes public 1995: Acquisition of Hamburger Stahlwerke > Ispat International Ltd. and Ispat Shipping formed > Acquisition of Karmet 1994: Acquisition of Sidbec-Dosco 1992: Acquisition of Sibalsa 1989: Acquisition of Iron & Steel Company of Trinidad & Tobago History of Arcelor Arcelor was created through the merger of Arbed (Luxembourg), Aceralia (Spain) and Usinor (France). The three European groups were determined to mobilise their technical, industrial, and commercial resources in order to create a global leader in the steel industry. The merger was officially launched on 19 February 2001 and the choice of the Arcelor name was announced on 12 December 2001. The merger became effective on 18 February 2002 when Arcelor shares were listed on several stock exchanges. Arcelor Highlights 2002- 2006

2006 2005 2004 2003 2002

Founding companies of Arcelor

Chronology Arbed Chronology Aceralia Chronology Usinor

ARTICLES
BURNS HARBOR | A manager suffered third-degree burns on more than 55 percent of his body Saturday in a blast at ArcelorMittal Burns Harbor, a union official said. Portage resident Gabe Rocha was airlifted to Loyola University Medical Center, where he remains in the burn unit in a medically induced coma, United Steelworkers Local 6787 President Paul Gipson said. Rocha is expected to survive. According to Gipson, Rocha accompanied colleagues to investigate a sound on the No. 1 basic oxygen furnace vessel around 9:30 p.m. Saturday. "They thought it was an air leak," Gipson said. As the group approached the No. 1 vessel, Gipson said, a steam line on the No. 2 vessel ruptured, sending Rocha 200 feet backward. Rocha was burned from the back of his head to his lower calves in the incident, Gipson said. A spokesman for the hospital said Rocha was in critical condition Tuesday. A statement issued by ArcelorMittal on Tuesday said, "Our thoughts are with the employee and his family." "We do not anticipate this incident to impact our ability to continue to serve our customers," the statement said. Gipson said Rocha is in his mid-50s with a wife and children. Rocha spent years working in management at Inland Steel and recently moved to ArcelorMittal's Burns Harbor plant. "He was very familiar with a basic furnace," Gipson said. The incident sparked a joint investigation by the union and management, Gipson said. As of Tuesday, there were no detailed findings available from the probe. In 2007, five people were seriously burned in an incident at a basic oxygen furnace at the Burns Harbor facility.

Read more: http://www.nwitimes.com/news/local/porter/duneland/burnsharbor/article_3b7deafc-1c1f-5501-8f54-ca14e97d9003.html#ixzz1cW6BiOAu

ArcelorMittal is attempting to ride out the weak economic conditions in Europe without the need for further plant closures, according to the head of the companys main steel operations across the continent. Robrecht Himpe, vice-president for European flat steel at ArcelorMittal, told the Financial Times the company had no plans for permanent plant shutdowns, following its decision this month to close a large part of a steel works in Belgium with the loss of 600 jobs. The decision to shut two blast furnaces at the companys Lige site was ArcelorMittals first significant closure since it was formed in 2006 as a result of the merger between Mittal Steel and Arcelor to create the worlds largest steel business.The company headed by Lakshmi Mittal, its chairman and main owner has shied away since then from cutting back significantly on plant output on a permanent basis, preferring instead temporary shutdowns by putting some employees on short-time working at times of poor demand.However, some onlookers believe that the company may be forced to consider removing more capacity from its European steel operations if demand for the metal fails to pick up in the next few months.Ingo Schachel, an analyst at Commerzbank, said that even with the Lige partial closure the European steel industry still suffered from structural overcapacity and that ArcelorMittal is among the companies that should consider further permanent closures.Wolfgang Eder, chief executive of Voestalpine, Austrias biggest steelmaker, said he was convinced that we will see more [plant] shutdowns in the next years. Whether the closures should be made by ArcelorMittal or other companies was hard to say, according to Mr Eder, who is also chairman of Eurofer, the main European trade association for the steel industry. The issue of how to react to poor demand in Europe linked to the fragile state of many of ArcelorMittals European customers in sectors such as construction is likely to overshadow Mr Mittals efforts to put a positive gloss on the outlook when he presents the companys third-quarter results on Thursday.

While analysts believe that earnings before interest, tax, depreciation and amortisation for the third quarter will come in at $2.5bn, expectations for the whole of 2011 put ebitda at about $10.4bn, 22 per cent above the $8.5bn recorded in 2010. Next year, onlookers believe the earnings figure will pick up only marginally, rising to about $10.8bn. ArcelorMittals European operations add up to the biggest part of the company. In the past two years, they have acted as a drag on the companys overall profits, due to generally weak demand and higher costs compared with some of its other steel plants such as in Brazil. According to Mr Himpe, production from ArcelorMittals plants in Europe are currently operating at the level of making 28m tonnes of steel a year, compared with the 36m tonnes operating level in 2007 when demand for steel was soaring. The current cuts in output in Europe are coming through temporarily shutting some of the companys mills across France, Germany, Spain, Belgium and Luxembourg. About 3,600 of ArcelorMittals 60,000-strong European workforce are working part-time on lower pay. Since the Arcelor merger, Mr Mittal has fought the idea of permanently shutting any significant part of plant operations. However, in May this year, he moved his son Aditya Mittal ArcelorMittals chief financial officer to take overall control of Europe. Company observers inferred then that Aditya might be more willing to countenance permanent closures in Europe as a way to boost the companys overall competitiveness.

ArcelorMittal bets on acquisitions

February 15, 2010 | PTI

NEW DELHI: Global steel giant ArcelorMittal has said that it is likely to continue to expand its base by acquiring companies worldwide even though it maintains that inorganic growth route could harm its financials. "ArcelorMittal has grown through acquisitions and will likely continue to do so. Failure to manage external growth and difficulties in integrating acquired companies could harm ArcelorMittal's future results of operations, financial conditions and prospects," the NRI...

ArcelorMittal chickens out of Peabody Energy's $5.1 bn Australia venture to hoard its cash
October 26, 2011 | Reuters

LONDON: Buyers don't usually turn sellers halfway through an M&A deal. Yet ArcelorMittal has chickened out of a junior role in Peabody Energy's $5.1 billion takeover of Australia's Macarthur Coal . There may be some financial logic to the U-turn. But it makes the world's largest steelmaker, controlled by the ber-rich Mittal family, look nervy. The Mittals appear to have been betting that their tender offer with Peabody would...