Annual Financial ResultsAnnual Financial Resultsfor the 12 months ended 31 December 2007

ArcelorMittal South Africa Limited

2

Introducing New CEO and member of the Board

Me. Nku Nyembezi-Heita

3

Introducing new President and member of the Board

Luc Bonte

Market and OperationsMarket and OperationsRick ReatoRick Reato

5

Introduction and Overview

Earnings increase to R5.7bn Earnings per share of 1 288c up 21% Net cash flow of R2.9bn

Domestic market retained momentum Demand essentially unchanged on 2006 Domestic sales constitute 76% of total sales

Cost pressures continue Raw material cost increased by 14% Cost of steel sales increased 17%

Operations BFD rebuild completed Liquid steel production down 10% Sales down 6%

Earnings increase by 21%

6

Key Result Drivers

Production volumes impacted on sales volumes

HRC US$ export price +22%

LCWR US$ export price +26%

Total sales volume -6%

Export sales volume -22%

Domestic sales volume +1%

HRC Rand cash cost per tonne +18%

Billet Rand cash cost per tonne +16%

Labour productivity -3%

ZAR movement -4%

2007 vs 2006

7

Global Environment – General Market Trends

World economic growth in 2007 decreased marginally from 3.9% to 3.6%

Chinese economy grew by 11% despite measures to cool it down

World consumption and production of steel increased by 7.5% in 2007

Global steel industry consolidation still priority

Input costs remain high & will continue to support prices

Lower price volatility expected to continue

Global steel consolidation supports a less volatile market environment

8

-30,000

-5,000

20,000

45,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Global Environment - Chinese Market Trends

China remained a net exporter of total steel products in 2007 China accounted for 37% of world steel production and 35% of

consumption Export taxes increased

ExportImport

kton

nes

Net

China expected to retain its status as a net exporter

Source : TEX Report

9

Global Environment – Input Cost Trends

Iron ore price expected to increase substantially China iron ore spot @ premium of US$40/t

Coking Coal cost pressure expected in 2008 due to scarcity worldwide Coking coal spot prices have increase by 65%

Sharp increase in scrap prices in early 2008 Scrap prices increased by 30% during 2007 Reduction in supply from traditional markets due to local consumption

Port delays & changing trade patterns lead to rising freight rates Freight rates almost doubled during 2007

Prices of base metals and alloys increased substantially Tin (+66%); Nickel (+55%); Ferro Alloys (+60%); Zinc stable after +146% in 2006

Raw material prices exert pressure on steel prices

10

0

100

200

300

400

2003 2004 2005 2006 2007 2008

Coking Coal Iron Ore Scrap (Tex)

Spot coal prices

Global Environment – Benchmark Prices

Global input costs continue to increase

Base

d to

100

11

Global Environment - Export Prices Achieved

HRC Low carbon wire rod

Expo

rt pr

ices

(c&f

) US$

/t

Steel prices established new trading range

100

200

300

400

500

600

700

800

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

12

Domestic Environment – Shipments

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

69 73 77 81 85 89 93 97 01 05

Flat (t)Long (t)

Long steel local despatches again achieved a record level

Source : SAISI

13

Domestic Environment – Inventory Levels

0

500,000

1,000,000

1,500,000

69 73 77 81 85 89 93 97 01 050

4

8

12

16

20

Stocks (t) Week’s despatches

Industry inventory levels below recent averages

Source : SAISI

14

Domestic Environment – Imports

0

400,000

800,000

1,200,000

69 73 77 81 85 89 93 97 01 050%

4%

8%

12%

16%

20%

24%

Imports (t) % of consumption

Imports slightly down from 2006

Source : SAISI

15

Key Performance Indicators

Productivity influenced by lower volume

Employees per million tonnes produced 1 385 1 429

Revenue per head (R000) 2 594 3 220

HRC cash cost - R/t 2 150 2 538- US$/t 318

360

Billet cash cost - R/t 1 993 2 310- US$/t 295

327

Percentage value-add exports - flat 96% 97%- long 94%

100%

2006 2007

16

Liquid Steel Production

4855

2178

7033

5067

2194

7261

4863

2192

7055

4231

2144

6375

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Flat Products Long Products Total

kton

nes

20062005 20072004

Blast furnace rebuild and Corex reduced output volumes

17

Liquid Steel Production

BFD biggest impact on output volumes

2006 liquid steel output 7 055

Recoupment of 2006 losses +323

Vanderbijlpark - BFD Rebuild -813

Vanderbijlpark - BFD Cold hearth conditions -177

Saldanha - Corex condition -49

Newcastle - Furnace condition -57

Efficiency improvements +93

2007 liquid steel output 6 375

ktonne

18

Operational developments

Blast Furnace D

Market Coke production at battery N2 at Newcastle Works

Galvanizing line 5 achieved full capacity

Colour coating line achieved record output

EAF at Vereeniging produced record volume

Various records at all rolling mills at Newcastle

Blast Furnace D overshadowed production

19

Shipment Volumes

2728 24022969 2886

1151 1083 1431 1535

3879 34854400 4421

1601 18811299

1042

743 864 495 366

2344 27451794 1408

0

1,000

2,000

3,000

4,000

5,000

6,000

2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007

kton

nes

ExportDomestic

4 329

1 894

6 223

4 283

1 947

6 230

4 268

1 926

6 194

Flat Products Long Products Total

3 928

1 901

5 829

Substantial shift to meet local demand on long products

20

Geographic Shipments

1%

11%

0%

88%

12%

76%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Europe

Asia

Americas

Total Africa

Rest of Africa

South Africa

20062005 20072004

Maintain Africa focus

21

Investment Programme

Furnace refurbishment absorbed 30% of total cash flow expenditure

Rm 2007

Major projects completed (and ongoing) in 2007Vanderbijlpark Works 1 183- Blast furnace “D” rebuild completed- New direct reduction kilns 5 & 6 on track (2008)Saldanha Works 260- Corex/Midrex reline preparation- Ore screen & stockhouse upgradeNewcastle Works 199- Evaporator crystalliser & RO plant upgrade- Blast Furnace “N5” Mini-reline (2008)Vereeniging Works 50- EAF Dust extraction (2008)- Crane replacement and gantry upgrade at Steelmaking (2008)Coke & Chemicals 59- Battery rebuild (Newcastle)Other (mainly Mozambique) 97

Total Expenditure in 2007 1 848

22

Safety Remains our Priority

ArcelorMittal South Africa achieved 26 LTI free days (3.7m LTI free man hours)

1m LTI free hours achieved

7x at Vanderbijlpark Works

6x at Newcastle Works

1x at Vereeniging Works

1x at Saldanha Works

Best ever safety performance by Newcastle Works

Best ever safety performance

*Includes contractors

IISI

Lost

Tim

e In

jury

Fre

quen

cy R

ate

(LTI

FR)*

2.0

3.0

4.0

5.0

6.0

7.0

2002 2003 2004 2005 2006 2007

ArcelorMittal South Africa

FinanceFinanceKobus VersterKobus Verster

24

Headline Earnings

Record earnings

Revenue 25 350 29 333

Operating profit 6 082 7 703

Gains & losses on foreign exchange rates and financial instruments 301 -131

Financing cost - net interest income 294 369- imputed interest on non-current provisions -101

-44

Income from investments 7 4

Tax -2 022 -2 455

Equity earnings* 135 270

Net deficit on disposal or scrapping of assets* 34 25

Headline earnings 4 730 5 741- in US$m 693 816

Rm 2006 2007

*After tax

25

Headline Earnings Trend

661599

353

656 672

1398

15861439

15821653

988869

703

1247

1488

1292

15321623

1056

1528

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Rm

2003 2004 2005 2006 2007

Earnings remains within ‘new’ range

26

Operating Profit

Long products and Coke & Chemicals continue to increase their contribution

Flat products 3 6444 338

Long products 2 1112 661

Coke & Chemicals 184727

Corporate & other 143-23

Operating profit 6 0827 703

Rm 2006 2007

27

Cash Flow

Cash flow remains robust

Cash profits from operations 7 1329 021

Working capital -1 033-606

Capex -1 446-1 848

Net interest/Investment income 468476

Investments-16

Tax -1 660 -2 209Dividends -1 261

-1 948Net cash flow 2 200

2 870Capital reduction

-6 352Net cash flow after capital reduction 2 200

-3 482Net cash 7 679

3 973

Rm 2006 2007

28

Financial Ratios

Improvement in financial ratios

Operating margin 24% 26%

EBITDA margin 28% 30%

Revenue / invested capital (times) 1.41.5

Return on equity 22% 26%

Net cash/equity 33% 19%

2006 2007

29

50

150

250

350

450

550

650

Arcelor Mittal South Africa ALSI Top 40

Period 2003 to 2007

Average Dividend Yield at 5.7% (excl cap red) - double the market

Average Price Earnings ratio of 7.2X - half the market

Share Performance

Excellent medium to long term share performance

30

Dividend

Dividend policy Distributing one third of headline earnings

Dividend and cash declared Interim dividend of 233 cents per share - 3 September 2007 Final dividend of 196 cents per share - 17 March 2008 Total dividend of 429 cents covered 3 times by EPS of 1 288 cents

Capital reduction of 1 425 cents - September & October 2007

Total cash distribution of 1 854 cents over past twelve months

Cash yield at 13.6%

Other DevelopmentsOther DevelopmentsRick ReatoRick Reato

32

Meeting local demand

Channels for capturing strong local demand and strong international prices

Production stability

Divert exports

N5 and Corex/Midrex relines

Investing in additional capacity

Electricity supply

Focus on production stability

33

Investment Programme

Investment programme support expansion strategy

Relines 450

Maintain capability 2 000

Steel capacity increase 2 900

Downstream value adding projects 2 700

Environmental investments 1 000

Expenditure in 2005 1 608

Expenditure in 2006 1 446

Expenditure in 2007 1 848

Rm 2008 - 2011

34

Major Investments up to 2011

Flat products DRI kilns (2008) Corex and Midrex reline (2008) New Colour Line (2009) New Galvanising line (2011) Power plant Ore screen and stockhouse upgrade (2009)

Long products N5 reline (2008) Maputo mill (2008) New Bar/Section Mill (2011) New Blast Furnace “N6” (2011) New Billet Caster (2011) Crane and gantry upgrade (2008)

35

Major Investments up to 2011

Environmental Sinter clean gas EAF dust extraction at Vanderbijlpark Works EAF dust extraction at Vereeniging Works Calcium Carbide Desulphurisation at Newcastle Works Evaporator crystallizer

36

Ongoing developments

Competition Tribunal

SARS BAA dispute

Iron ore supply

Electricity supply

BEE

37

Cost containment

Production stability

Increased throughput

Purchasing power

Efficiency improvements

Cost Control

OutlookOutlookRick ReatoRick Reato

39

Outlook for Q1’08

Business environment Domestic demand expected to remain healthy Higher international prices expected Higher input prices will influence production costs

Earnings Earnings to remain strong compared to Q4’07 Power supply and the exchange rate may have an influence

Earnings expected to remain strong in Q1’08

Annual Financial ResultsAnnual Financial ResultsThank youThank you

ArcelorMittal South Africa Limited