Interim Financial Report...China continues to distort global steel market dynamics, with exports remaining at record highs due to the overcapacity in the domestic market and slowing

Interim Management Report 1

Interim Financial ReportHalf Year ended June 30, 2015

2 Interim Management Report

Table of contents

Interim management reportCompany overview ________________________________________________________________ 3Message from the Chairman and CEO __________________________________________________ 4Business overview _________________________________________________________________ 5Recent developments ______________________________________________________________ 22Corporate governance _____________________________________________________________ 23Cautionary statement regarding forward-looking statements ______________________________ 25Chief executive officer and chief financial officer’s responsibility statement ___________________ 26

Financial statementsCondensed consolidated financial statements for the six months ended June 30, 2015Condensed consolidated statements of financial position _________________________________ 27Condensed consolidated statements of operations _______________________________________ 28Condensed consolidated statements of other comprehensive income _______________________ 29Condensed consolidated statements of changes in equity _________________________________ 30Condensed consolidated statements of cash flows _______________________________________ 31Notes to the condensed consolidated financial statements ________________________________ 32

Report of the réviseur d’entreprises agréé - interim financial statements ____________________ 47

2


Company overview

Company overview ArcelorMittal including its subsidiaries (“ArcelorMittal” or the “Company”) is the world’s leading integrated steel and mining company, with annual achievable production capacity of approximately 114 million tonnes of crude steel. ArcelorMittal had sales of $34.0 billion, steel shipments of 43.8 million tonnes, crude steel production of 47.8 million tonnes, iron ore production from own mines of 31.9 million tonnes and coal production from own mines of 3.1 million tonnes in the six months ended June 30, 2015 as compared to sales of $40.5 billion, steel shipments of 42.4 million tonnes, crude steel production of 46.1 million tonnes, iron ore production from own mines of 31.4 million tonnes and coal production from own mines of 3.6 million tonnes in the six months ended June 30, 2014. The Company had sales of $79.3 billion, steel shipments of 85.1 million tonnes, crude steel production of 93.1 million tonnes, iron ore production from own mines of 63.9 million tonnes and coal production from own mines of 7.0 million tonnes for the year ended December 31, 2014. As of June 30, 2015, ArcelorMittal had approximately 219,000 employees.

ArcelorMittal has steel-making operations in 19 countries on four continents, including 56 integrated and mini-mill steel-making facilities. ArcelorMittal is the largest steel producer in the Americas, Africa, and Europe and is the sixth largest steel producer in the Commonwealth

of Independent States (“CIS”) region. ArcelorMittal produces a broad range of high-quality steel finished and semi-finished products. Specifically, ArcelorMittal produces flat steel products, including sheet and plate, long steel products, including bars, rods and structural shapes. ArcelorMittal also produces pipes and tubes for various applications. ArcelorMittal sells its steel products primarily in local markets and through its centralized marketing organization to a diverse range of customers in over 170 countries including the automotive, appliance, engineering, construction and machinery industries.

ArcelorMittal has a global portfolio of 14 operating units with mines in operation and development and is among the largest iron ore producers in the world. The Company currently has iron ore mining activities in Brazil, Bosnia, Canada, Kazakhstan, Liberia, Mexico, Ukraine and the United States and holds a minority position in Algeria. The Company also has projects under development or prospective development in Canada and India. The Company currently has coal mining activities in Kazakhstan and the United States. The Company also produces various types of mining products including iron ore lump, fines, concentrate and sinter feed, as well as coking coal, Pulverized Coal Injection (“PCI”) and thermal coal.

Corporate and other informationArcelorMittal is a public limited liability company (société anonyme) that was incorporated for an unlimited period under the laws of the Grand Duchy of Luxembourg on June 8, 2001. ArcelorMittal is registered with the Luxembourg Register of Commerce and Companies (Registre du Commerce et des Sociétés) under number B 82.454.

Individual investors who have any questions or document requests may contact: [email protected].

Institutional investors who have any questions or document requests may contact: [email protected].

The mailing address and telephone number of ArcelorMittal’s registered office are: ArcelorMittal, 24-26 boulevard d’Avranches, L-1160 Luxembourg, Grand Duchy of Luxembourg, telephone: +352 4792-3746.


Dear Shareholders,

Despite our business facing some significant challenges during the first half of 2015, our financial performance has been resilient and the Company continues to benefit from actions taken, particularly in Europe, in the recent past.EBITDA for the first half of 2015 was $2.8 billion, on revenue of $34.0 billion.China continues to distort global steel market dynamics, with exports remaining at record highs due to the overcapacity in the domestic market and slowing economic growth. While this is a global issue, the impact has been significant in the US due to the strong US dollar. We anticipate performance from our US operations to improve as the year progresses and the inventory build-up we experienced in 2014 to unwind. Ensuring our US operations are capable of delivering sustainable levels of profitability is of vital importance; we are committed to taking the required actions to ensure this happens.Performance from our European operations continues to be a bright spot for the group, with results in the first half of the year showing continued strength. The combination of an ongoing European economic recovery, albeit at low growth levels, and the actions we have taken in adjusting our footprint in Europe are the primary drivers behind this encouraging performance and leave us confident of securing our share of future demand growth.

The second major challenge the Company currently faces is the low iron ore price. I have said before that we always predicted a weakening in the iron ore price environment but the speed and severity of the decline took us, and indeed all major iron ore businesses, by surprise. We must ensure our mining operations adjust to the current price reality. I am very pleased to report that we are doing so, with tangible evidence of progress with iron ore cash costs reduced by 14 percent, ahead of our target at the start of the year. We have taken a further step this year in executing our global automotive strategy, signing a Memorandum of Understanding with the Steel Authority of India Limited for a potential automotive steel focused joint venture in India. While this partnership remains at an early stage, we are excited by the growth potential the Indian automotive market offers. Looking at our automotive offering more broadly, we continue to invest in research and development to enable us to produce stronger, lighter steels for vehicles of the future and ensure that steel remains the material of choice for global automotive manufacturers.Financially, the Company is in robust shape; we continue to expect a positive free cash flow in 2015 and make progress towards our medium-term net debt target of $15 billion throughout the course of the year.Looking ahead, we continue to expect apparent steel consumption for the year to be at similar levels to 2014, and believe we are well placed to benefit

from a recovery in our core markets while simultaneously remaining highly focussed on costs and driving operational improvement across all areas of our business.

Lakshmi N. Mittal Chairman and CEO

Message from the Chairman and CEO


Business overview

The following discussion and analysis should be read in conjunction with ArcelorMittal’s consolidated financial statements and related notes appearing in its Annual Report for the year ended December 31, 2014 and the unaudited condensed consolidated financial statements for the six months ended June 30, 2015 included in this report.

Key factors affecting results of operationsThe steel industry, and the iron ore and coal mining industries, which provide its principal raw materials, have historically been highly cyclical. They are significantly affected by general economic conditions, as well as worldwide production capacity and fluctuations in international steel trade and tariffs. In particular, this is due to the cyclical nature of the automotive, construction, machinery and equipment and transportation industries that are the principal consumers of steel. After a period of continuous growth between 2004 and 2008, the sharp fall in demand resulting from the global economic crisis demonstrated the steel market’s vulnerability to volatility and sharp corrections. The last quarter of 2008 and the first half of 2009 were characterized by a deep slump in demand, as customers used up existing inventories rather than buying new stock. Since then, demand has improved but has been impacted by the onset of the eurozone crisis and more recently a slowdown in China and recessions in some large emerging markets (e.g. Brazil and Russia). In all cases, the weakness of apparent demand has been exacerbated by the inventory cycle. Moreover, the current weakness in demand and a ramp up in supply has caused iron ore prices to decline back to levels below those seen at the height of the financial crisis, and this is having a negative impact on profitability, not only directly in terms of marketable ore sales but also in the reduced benefit from the use of local captive ore.

The Company’s sales of iron ore to external customers as a percentage of overall mining sales has increased in recent years, due to the Company’s marketing efforts in anticipation of increasing mining production. Sales of iron ore to external parties increased in 2013, rising to 11.6 million tonnes for the year compared to 10.4 million tonnes in 2012. In 2014, sales of iron ore to external parties increased further to 14.4 million tonnes, due to rising output at Mines Canada and Liberia operations. However, while total sales of marketable iron ore rose again in the first half of 2015 to 20.1 million tonnes up from 19.8 million tonnes during the first half of 2014, actual sales to external customers fell slightly (6.5 million tonnes for the first half of 2015 compared to 6.7 million tonnes in the first half of 2014) as the Company shipped an increasing proportion at market prices internally.

The Company’s operating profitability has been particularly sensitive to fluctuations in raw material prices, which have remained volatile over the past few years but have broadly trended lower, with iron ore averaging only $60 per tonne (“/t”) cost inclusive of freight (CFR) China during the first half of 2015. This is down from an average of over $110 during the first half of 2014. With respect to iron ore and coal supply, ArcelorMittal’s growth strategy in the mining business is an important natural hedge against raw material price volatility. Volatility on steel margins aside, the results of the Company’s Mining segment is also directly impacted by iron ore prices, which were weaker in 2014, averaging $97/t. As the Mining segment’s production and external sales grow, the Company’s exposure to the impact of iron ore price fluctuations also increases. This means, among other things, that if iron ore prices were to remain around current levels ($50-55/t) due to additional supply or any further significant slowdown of Chinese steel

production, this would continue to have a negative impact on ArcelorMittal’s revenues and profitability. However, during the first half of 2015 ArcelorMittal has reduced the costs of its total iron ore production by 14% year-on-year to keep its costs as internationally competitive as possible. However, the profitability of the Mining segment has weakened as lower selling prices have largely offset reduced costs and in the long-term the iron ore price could be negatively impacted by steel demand peaking in China.

One of the principal factors affecting the Company’s operating profitability is the relationship between raw material prices and steel selling prices. Profitability depends in part on the extent to which steel selling prices exceed raw material prices, and, in particular, the extent to which changes in raw material prices are passed through to steel selling prices. Complicating factors include the time lag between (a) the raw material price change and the steel selling price change and (b) the date of the raw material purchase and the actual sale of the steel product in which the raw material was used (average cost basis). In recent periods, steel selling prices have tended to react quickly to changes in raw material prices, due in part to the tendency of distributors to increase purchases of steel products early in an increasing cycle of raw material prices and to hold back from purchasing as raw material prices decline. With respect to (b), as an average cost basis is used to determine the cost of the raw materials incorporated, inventories must first be worked through before a decrease in raw material prices translates into decreased operating costs. In some of ArcelorMittal’s segments, in particular Europe and NAFTA, there are several months between raw material purchases and sales of steel products incorporating those materials. Although this lag has been reduced recently by changes to

the timing of pricing adjustments in iron ore contracts, it cannot be eliminated and exposes these segments’ margins to changes in steel selling prices in the interim (known as a “price-cost squeeze”).

In 2014, steel demand in the developed markets of North America and Europe, which account for a majority of ArcelorMittal deliveries, rebounded, slightly in Europe and more strongly in the United States, fuelled by the strength of underlying demand but also the inventory cycle. During the first half of 2015, while underlying demand continued to rise in both markets, apparent demand in the United States has declined due to a reversal of the inventory cycle. This has been driven by the abnormally high level of imports last year, which rose 38% year-on-year to more than 40 million tonnes and is an example of how excess capacity in one region can negatively impact another. China has seen domestic demand decline year-on-year through both the second half of 2014 and the first half of 2015 as real steel demand declined due to the weakness of the real estate sector. At the same time, there has been a significant increase in exports from 82 million tonnes annualized in the first half of 2014 to 106 million tonnes annualized during the first half of 2015. While these exports are mainly directed to Asia, they are also increasingly sold into many of ArcelorMittal’s domestic markets. Moreover, steel demand has also declined in some other traditional net exporting regions during the first half of 2015, notably CIS and Japan, which has put added pressure on international export markets.

Overall, ArcelorMittal’s sales are predominantly derived from the sale of flat steel products, long steel products, and tubular products as well as of iron ore and coal. Prices of steel products, iron ore and coal, in general, are sensitive to changes in worldwide and regional demand, which, in turn, are affected by worldwide and country-specific economic


conditions and available production capacity.

Economic environment1

After a weak start to 2015, indicators suggest that global GDP is expanding again at a moderate pace, having picked up only marginally from 2.5% year-on-year in 2013 to 2.6% in 2014. GDP growth in the eurozone and Japan is picking up, and the United States is expected to continue to expand at a robust pace despite another weak start to the year, while a broad-based slowdown is underway in many developing countries. Continued low commodity prices are affecting global activity, with consumer spending in commodity importing countries benefiting from lower oil prices holding inflation at record lows. In contrast, economic activity has slowed in commodity exporting countries (notably Russia and Brazil), which have raised policy interest rates to defend their currencies despite also having to tighten fiscal policy as commodity-related revenues have fallen. Economic activity in the United States stalled at the start of the year as a result of another cold winter, disruptions to port activity and sharp cutbacks in capital expenditures in the energy sector. Also, the dollar has appreciated significantly over the past 12 months, largely driven by the markets anticipating the Federal Reserve (the US Central Bank), raising interest rates. The appreciation of the dollar is exerting downward pressure on capital flows to developing countries. However, lower energy prices, robust job creation of over 600,000 jobs in the second quarter and rising wages have bolstered consumer spending, supporting homebuilding and auto sales. Auto sales remain robust, up to 3.6% year-on-year in the second quarter of 2015 to 17.1 million units and highest first half year sales since 2005.

The recovery in the United Kingdom remains on track despite mixed data in the first quarter of 2015, including indications of weak construction and manufacturing activity. The

recovery in the eurozone has progressed, supported by a weak euro, low oil prices, record low interest rates, and an improvement in bank credit supply conditions. Real GDP growth picked up from 0.3% quarter-on-quarter at the end of 2014 to 0.4% in the first quarter of 2015, with notable improvements in Spain and France. Additional monetary easing by the European Central Bank (“ECB”), including the launch in March 2015 of a quantitative easing program, has brought long-term interest rates to record lows and contributed to a substantial depreciation of the euro since mid-2014, which is supporting activity and is expected to gradually lift inflation from the current very low levels. Eurozone consumer spending accelerated in the first quarter, as lower energy prices boosted purchasing power. Investment growth strengthened in a number of countries, including Germany and the Netherlands, which was helped by the easing credit conditions and increasing business confidence. Fiscal policy is now broadly neutral, following several years of significant consolidation efforts. The turmoil in Greece is having wide-ranging repercussions for the Greek economy, but contagion to the eurozone as a whole has been limited so far. However, the risk remains that further deterioration may damage broader eurozone confidence in the face of persistent headwinds: elevated corporate leverage, financial fragmentation and significant slack in the labor markets of periphery countries.Activity in China has continued to decelerate, leading to support from both monetary and fiscal stimuli. Fixed asset investment growth slowed to 15.2% in 2014, down from 19.4% in 2013, but is still the main driver of aggregate demand. In response to weaker real estate sales (down 8% year-on-year in 2014), new starts declined throughout 2014 and were down 16% year-on-year in the first half of 2015. However, real estate sales returned to growth by the middle of 2015, which should begin to support new starts in 2016. The labor market

remains relatively tight, as a result of rapid service sector growth despite reportedly stagnating employment in industries with overcapacity. Producer prices have contracted significantly, particularly in industrial sectors affected by overcapacity. Inflation has steadily declined since 2013 and is expected to stabilize at a low level. Chinese authorities have put in place a series of stimulus measures to boost growth and to alleviate the drag from high debt levels. Specifically, interest rates have been cut (three times), the required reserve ratio has been lowered and import taxes have been reduced. Authorities also announced a debt swap program to reduce local-government debt-servicing costs. The renminbi has been relatively stable against the dollar and therefore has appreciated relative to many of China’s trading partners, thus reducing export competitiveness.

The Russian economy has been in recession since mid-2014 and the downturn has accelerated in the first half of 2015 as high inflation has required interest rates to remain high hitting both business investment and consumer demand hard. The outlook for Brazil continues to weaken, with PMI clearly indicating contraction as the economy re-enters recession exacerbated by government cuts, fallout from the Petrobas investigation, fragile confidence, low commodity prices and high inflation. In contrast, activity in India is buoyed by stronger confidence as a reform-minded government implements its agenda and lower oil prices help contain vulnerabilities. Growth in South Africa is held back by energy shortages, weak investor sentiment amid policy uncertainty and by the anticipated tightening of monetary and fiscal policies. In line with GDP growth, the weak start to the year has been reflected in industrial production. Organization for Economic Co-operation and Development (OECD) industrial production slowed to around 1.3% year-on-year in the first half of 2015, from 2.3% in 2014, in particular hit by the bad weather

in the US. Whereas, industrial production growth in non-OECD countries is estimated to have fallen to around 2.7% year-on-year in the first half of 2015, from 3.8% in 2013, driven by the slowdown in China and recessions in both Brazil and Russia.

Global apparent steel consumption (“ASC”) is estimated to have grown by 1.8% year-on-year in 2014. This was mainly due to world ex-China consumption rising over 4% year-on-year, a significant increase compared to the 1% average growth over the previous two years. Chinese ASC growth is estimated to have declined slightly in 2014 due to substantial de-stocking over an otherwise positive real demand growth, compared to the 10% growth per annum since 2007. During the first half of 2015, Chinese demand has continued to decline, down over 3.5% year-on-year. Most other emerging markets have continued to grow with the exception of Brazil (down 11% year-on-year for the first half of 2015), Russia (down 12% year-on-year for January through May 2015) and Ukraine (down 35% year-on-year for January through May 2015). In addition, after strong growth in steel demand in developed markets last year, ASC is declining in USA (down 2.5% year-on-year for the first half of 2015), Canada and Japan due mainly to the negative impact of the stock cycle.

Steel production2

Global production increased in 2014, up 2.3% to 1.68 billion tonnes due to rising output in China. Chinese production increased from 815 million tonnes in 2013 to about 838 million tonnes in 2014 (an increase of 2.8% year-on-year), whereas world ex-China growth also increased from 827 million tonnes to 839 million tonnes an increase of 1.5% year-on-year). However, world ex-China remains about 19 million tonnes below the pre-crisis peak of 858 million tonnes in 2007. Indeed, the only regions to have grown in comparison to 2007 are the Middle East (73.3%) and Asia

1 GDP and industrial production data and estimates sourced from IHS Global Insight July 15, 20152 Annual global production data to 2014 for all countries is collected or estimated by World Steel. The only exception is China, where the Chinese National Bureau of Statistics data

as initially reported is used as a base together with ArcelorMittal estimates for under-reporting. 2015 production is for countries for which World Steel Association collects monthly information and excludes countries whose data is collected annually. The growth rates for China in 2015 compare the monthly data as reported during the first half of 2014 with the monthly data reported during first half of 2015.

Business overviewcontinued


ex-China (15.4%), whereas output was down 8.6% in NAFTA, 19.4% in EU28, 6.3% in South America, 15.2% in CIS and 14.7% in Africa.Chinese steel production is estimated to have set yet another record of 838 million tonnes in 2014, over 71% higher than the pre-crisis output of 490 million tonnes in 2007. Output was slightly weaker during the second half of 2014 due to weakening demand conditions and falling prices but Chinese exports rose significantly in 2014 as mills global competitiveness was supported by softening iron ore prices, which helped producers avoid output cuts. Chinese output as a share of global production increased from 49.7% in 2013 to 50.0% in 2014.Global production outside of China improved during 2014 mainly due to a rebound in Europe and NAFTA. EU output rose by 1.8% to 169 million tonnes reflecting strengthening industrial activity. In NAFTA, output increased by 2.1% to 120 million tonnes in 2014 despite reduced utilization in the USA at the start of the year due to severe weather conditions. Production in Asia ex-China also remained strong, particularly in South Korea, where output increased by 7.5% year-on-year to 71 million tonnes in 2014. Over the same period, India recorded a 2.3% increase in crude steel production to 83 million tonnes, whereas output in Japan also increased by 0.4% to 111 million tonnes. Production faltered in South America as demand weakened in Brazil, falling by 1.4% year-on-year to 45 million tonnes. In the CIS, output decreased for the third consecutive year, falling by 2.0% year-on-year in 2014 to 106 million tonnes partly as a result of the political tensions in Ukraine and Russia.During the first half of 2015, global production fell by 1.6% year-on-year mainly due to a significant decline in output in key producers such as NAFTA, Ukraine, Japan, South Korea as well as a small decrease in China. Indeed, Chinese output fell by 0.4% year-on-year to 419 million tonnes reflecting weakening domestic demand,

while NAFTA production dropped to 55.5 million tonnes (a decrease of 6.6% year-on-year). CIS production also declined to 50.7 million tonnes (a decrease of 6.9% year-on-year) due to falling output in Ukraine, down significantly by 27.2% year-on-year, though Russian production actually increased by 0.8% over the first half of 2015 as the weak ruble supported exports. Production in Japan (52.7 million tonnes, a decrease of 4.5%) and South Korea (34.5 million tonnes, a decrease of 4.9%) also declined over the first half of 2015. However, output in EU28 remained steady, rising by a marginal 0.5% year-on-year to 88.1 million tonnes due to continued strength in industrial activity whereas in Brazil output rose by 2.0% as domestic producers increased foreign shipments amid lackluster domestic demand. In India, production also increased by 4.1% year-on-year over the same period to 4 million tonnes. Overall, however, world ex-China output declined by 2.7%.

Steel prices3

Steel prices for flat products in Europe remained relatively stable in Euro terms during the first quarter of 2015, against the average price of the fourth quarter of 2014, despite continued falls in raw material costs. The steel market improved with rising demand for consumer durables, while the weak Euro made imports less attractive. In Northern Europe hot rolled coil (“HRC”) price improved slightly from January to March, to an average of €405-413 ($458-467) per tonne (“/t”) for the first quarter of 2015. In Southern Europe, prices saw a similar trend, with spot HRC at €395-404 ($446-456)/t in the first quarter of 2015. The weaker Euro caused prices in USD terms to decline in both Northern and Southern Europe by around $50 as compared to the fourth quarter of 2014. Economic conditions remained good in Europe during the second quarter of 2015, with strong bookings in industry and auto. Despite this,

prices consistently weakened from April to June as domestic producers try to safeguard their position against increasing import pressures, especially from Russia (now facing weaker local demand). Spot HRC averaged between €398-405 ($440-448)/t in Northern Europe and between €385-393 ($425-435)/t in Southern Europe.In the United States, underlying demand remained strong, despite negative sentiment in the oil & gas sector, with consumer confidence in February at its highest since 2007. Nevertheless, the steel market was challenging, with high inventories and buyers cautious in placing orders. The strong USD continued to encourage imports during the first quarter of 2015, with South Korea, Japan and Germany quickly taking over from Russian deliveries upon the termination of the suspension agreement in December 2014. Domestic prices declined sharply, especially during February and March, following the Scrap #1 Busheling drop from $369 per gross tonne (“/GT”) in January to $255/GT in March. The spot HRC average price during the first quarter of 2015 was $580/t, with January at $626-637/t, while the lowest levels were seen in March at $526-538/t. The second quarter started weak, with scrap prices stable at $255/GT and HRC bottoming at a range of $491-503/t in April. Auto, appliances and construction saw some momentum build in May, allowing prices to strengthen to $502-510/t. Scrap #1 Busheling gained $30/GT from April to June to an average of $266/GT for the second quarter of 2015, supporting HRC price improvement to $507-514/t, for a quarterly average range of $500-509/t.

In China, the economic slowdown continued and 2015 started with uncertainty, due to the change in export rebate policy as of January 1st, and the government’s efforts to implement anti-pollution regulation, adding

more pressure on the domestic market. Despite the Chinese Central Bank’s cuts to interest rates and the bank reserve requirement ratio to boost growth, steel market activity remained depressed in the first quarter of 2015 and continued to weaken into the second quarter, especially entering the rainy season. Production was however sustained by exports surging again from March onward. Domestic prices continued in accelerated decline, with spot HRC down to $357-362/t VAT excluded, during the first quarter, (from $415-419/t in the fourth quarter of 2014), and further to $326-330/t VAT excluded, in the second quarter.

Long products saw good demand in Europe in January and February 2015, and a slight increase in scrap prices gave support for improvement on commodity pricing, despite pressure from Russian and Ukrainian exports into Eastern Europe in particular. Buyers became more hesitant towards the end of the first quarter as scrap prices weakened, thus building expectations for a price decline. However, medium sections prices improved from January to March (an increase of €7), with a quarterly average at €512-522 ($577-589)/t. Rebar’s price, on the other hand, suffered a stronger impact from the scrap price weakness and declined by €10 during the first quarter of 2015, to an average range of €413-422 ($466-476)/t. Greater availability of financing began to have a positive impact on construction investments, keeping demand for long products solid during the period from April to June. In addition, with scrap picking up, further price gains were achieved in Euro terms both for medium sections at €521-530 ($576-585)/t and rebar’s at €418-426 ($462-470)/t.Prices of scrap Heavy Melting Steel 1&2 imported into Turkey of USA origin, dropped substantially during the first two months of 2015, from $311/t CFR in January,


3 Source: Steel Business Briefing (SBB)


to $248/t CFR in February. This was followed by an unexpected price improvement starting in March, on the back of tight supply, to a peak of $286/t in May (average range of $274-279/t during the second quarter of 2015). Export prices for Turkish rebar fluctuated alongside scrap, dropping from $493/t FOB in January to $436/t FOB in March (average range of $455-461/t during the first quarter of 2015), and reversing to a peak of $454/t FOB in May (average range of $441-446/t FOB during the second quarter of 2015).

Current and anticipated trends in steel production and pricesGlobal steel production increased by 2.3% in 2014 buoyed by rising output in most regions with the exception of mainly the CIS and South America, where output fell by 2% and 1.7% respectively. In China, production growth remained strong in 2014, rising by 2.8%, and with domestic consumption declining, exports rose by over 30 million tonnes to around 94 million tonnes in 2014. Although Chinese production decreased over the first half of 2015, exports remained high, exceeding 100 million tonnes annualized over the first half of 2015. While the first half of 2015 saw a fall in global output, the Company is cautious about output growth over the second half as it expects apparent steel consumption growth to remain weak in key regions, particularly in Brazil and the CIS.ArcelorMittal continues to expect growth in underlying steel demand in the United States in 2015, but due to the strength of restocking last year, apparent steel consumption is expected to fall from the levels seen last year, as is domestic steel production. Indeed, apparent steel consumption in the USA is expected to fall by 3 to 4% in 2015. In Europe, ArcelorMittal expects the gradual recovery in the steel consuming sectors to continue in 2015. ArcelorMittal forecasts global steel demand to broadly stagnate in 2015 due to weaker growth in developed markets, Brazil and the CIS, while growth in other developing

markets is expected to pick up. In Russia, low oil prices, economic and financial sanctions are pushing Russia into recession causing domestic steel demand to contract sharply but the weak ruble are supporting exports and in turn steel production (up around 2.5% during first half of 2015). In Brazil, ArcelorMittal expects demand to contract by over 10% in 2015. In China, weaker steel demand, due to reduced purchasing activity from stockists and a weakening real estate sector, led to a decline of 1.3% in apparent steel consumption in 2014. The decline in underlying demand has accelerated during the first half of 2015, especially the reduction in newly started real estate projects. However, apparent consumption is expected to stagnate, at best, supported by slower destocking activity in 2015 compared to the previous year.Despite decreasing raw material prices over the first half of 2015, with both iron ore and coking coal falling to record lows, steel prices also dipped significantly as supply continued to outstrip demand. Contrary to our initial expectations, Chinese steel exports have continued to rise in the first half of 2015 and are having a negative impact on pricing in many markets. Exports from China are expected to slow during the second half of the year, but will reach a record high for the year.

Raw materialsThe primary inputs for a steelmaker are iron ore, solid fuels, metallics (e.g., scrap), alloys, electricity, natural gas and base metals. ArcelorMittal is exposed to price volatility in each of these raw materials with respect to its purchases in the spot market and under its long-term supply contracts. In the longer term, demand for raw materials is expected to continue to correlate closely with the steel market, with prices fluctuating according to supply and demand dynamics. Since most of the minerals used in the steel-making process are finite resources, they may also rise in response to any perceived scarcity of remaining accessible

supplies, combined with the evolution of the pipeline of new exploration projects to replace depleted resources.

As with other commodities, the spot market prices for most raw materials used in the production of steel saw their recent lows during the global financial crisis of 2008/2009, but have since recovered with a greater degree of volatility. Until the 2008-2009 market downturn, ArcelorMittal had largely been able to reflect raw material price increases in its steel selling prices. However, from 2009 onwards, ArcelorMittal has not been able to fully pass raw materials cost increases onto customers as its steel markets are structurally oversupplied and fragmented. This has resulted in a partial decoupling of raw material costs (mainly driven by Asian market demand) from steel selling prices achieved in the European market, and consequently increased risk of margin squeeze.

Since 2012, quarterly and monthly pricing systems have been the main type of contract pricing mechanism, but spot purchases also appear to have gained a greater share of pricing mechanisms as steelmakers have developed strategies to benefit from increasing spot market liquidity and volatility. In 2014 as well as 2015, the trend for using shorter-term pricing cycles seems to continue as in previous years, with spot purchases and spot indexed purchases further increasing their share of pricing mechanisms.

Iron ore In the first half of 2014, iron ore spot prices declined by 31% from $134.50 per tonne on January 1, 2014 to $93.25 per tonne on June 30, 2014. This downward price trend was due to increasing supply in the seaborne market and financial weakness in the Chinese steel sector. Credit market tightness combined with stretched cash flows at Chinese mills resulted in a strong destocking trend at Chinese mills from the beginning of the year through the end of the second

quarter. Rising iron ore import inventory at Chinese ports was reflective of stronger seaborne supply while real iron ore demand in the Chinese off-shore market remained relatively stable. The downward trend continued and reached the lowest level at $66-69 per tonne in late December 2014 on continued structural iron ore oversupply and persistent strains in the credit market in China as well as no seasonal restocking. The average spot price for the fourth quarter of 2014 was $74 per tonne, or 18% lower than previous quarter at $90 per tonne.

The downward trend continued in the first half of 2015, with high volatility. The iron ore spot price hit its lowest level on April 2, 2015 at $47.5 per tonne (Platts 62% Fe, CFR China), driven by structural oversupply, resilient loss making supply, lower mining and freight costs (following the sharp oil price decrease since late 2014 and weaker currencies in mining regions) and uncertainty about Chinese steel demand. In May and the beginning of June 2015, the recovery of Chinese crude steel production rate and short term limited supply due to weather disruptions in Australia provoked a temporary price rebound, reaching $65.75 per tonne on June 10, 2015, which then decreased by the end of June to $59.5 per tonne. The iron ore price (Platts 62%Fe CFR China) averaged $62.4 per tonne in the first quarter of 2015 and $58.5 per tonne in the second quarter of 2015.

Coking coal and cokeDue to the combined effects of strong Australian coking coal production performance and weaker seaborne demand in key importing regions, the coking coal spot market has been on a downward trend since the beginning of 2014. The spot price of a premium hard coking coal from Australia declined from $132-133 per tonne FOB Australia in January 2014 to $110-111 per tonne by the end of June 2014 and then stabilized in the range of $108-112 per tonne during the second half of the year. The



quarterly reference contract settlement price followed this downward trend and settled at $120 per tonne for the second quarter, down $23 per tonne from the first quarter settlement price of $143 per tonne FOB Australia. The third quarter contract settlement of 2014 was a rollover of the second quarter prices of 2014, at $120 per tonne FOB Australia, and was supported by continued strong seaborne supply, mainly from Australia, and lower seaborne imports from China. The coking coal market fundamentals remained stable in the fourth quarter with stable supply and demand conditions. The reference price for the fourth quarter of 2014 was settled at $119 per tonne, a decrease of $1 per tonne compared to the third quarter.

In 2015, the downward trend accelerated, caused by lower imports from China and decreasing production costs from major miners in Australia and other regions. Better performances from domestic mining operations in China supported the domestic price decrease. Chinese seaborne imports hit a record low in May 2015 at 1.3 million tonnes (down 69% year-on-year). Weaker Japanese imports in the first half of 2015 also contributed to lower spot and contract prices. The premium HCC FOB Australia quarterly contract price was settled at $117 per tonne in the first quarter of 2015 (down $2 per tonne compared to the previous quarter), $109.5 per tonne in the second quarter of 2015 (down $7.5 per tonne compared to the previous quarter) and $93 per tonne in the third quarter of 2015 (down $16.5 per tonne compared to the previous quarter). The spot price (Premium LV HCC, FOB Australia) reached its lowest level at $81.15 per tonne on May 11, 2015 and recovered by the end of June 2015 to a range of $88-89 per tonne as the Chinese spot buying activity recovered slightly.

ArcelorMittal continues to leverage its extensive supply chain, diversified supply portfolio and contracts flexibility

to capture a maximum value from the market price volatility and rapidly changing pricing environment.

Scrap During first half of 2015, following the market drop in global commodities, the international scrap market continued the downward trend that began in the last quarter of 2014. Scrap prices declined another $40-50/ton (“/t”) in the first quarter of 2015 compared to the last quarter of 2014. Year-on-year, export prices for scrap grade HMS 80:20 declined by $80/t, from an average of $333/t in Rotterdam FOB full year 2014 to an average of $253/t in the first half of 2015; in the United States, East Cost FOB prices declined by $80/t, from $339/t to $259/t.

Turkey, the biggest scrap importer in the deep sea market, also experienced decreases in scrap prices of $85/t CFR for HMS 80:20 in the first half of 2015 compared to the full year 2014. Prices for USA originated material decreased from $360/t in 2014 to $275/t in the first half of 2015 (CFR Turkey) and prices for EU originated scrap decreased from $352/t to $267/t (CFR Turkey) during the same period. These price decreases were supported by massive imports of billets from China-based iron ore production. Steel production decreased in Turkey in the first half of 2015 by 9.4% compared to first half of 2014, scrap imports decreased by 13.6% during the first four months of 2015 compared to first four months of 2014. High imports of billets from China remains and Turkey is currently out of the scrap imports market HMS 80:20 dropped to$235 on average for July 2015.

In the domestic US market, scrap prices decreased by more than a $100/t in the first half of 2015 compared to the full year of 2014. The Midwest Index for HMS 1 moved from $364/t in 2014 full year average to $248/t in the first half of 2015 full year average. Crude steel production in the United States decreased by 9% in the first half of 2015 compared to

the first half of 2014. A stronger US dollar also supported the scrap price reduction in the deep sea market where prices are set in USD.

Average prices on the Eurofer Index for demolition scrap E3 decreased €24, moving from an average of €262/t for the 2014 full year compared to an average of €238/t for the first half of 2015. The scrap price reduction, in Europe, was moderate compared to the US and international markets due to good European demand for scrap. The different market behavior was mainly due to healthy steel production levels in the EU and the European currency devaluation against the US dollar, making Europe the best choice for scrap imports. Steel production in the first half of 2015, in EU 28, was 0.5% higher compared to first half of 2014. Currently in July 2015, with summer shutdowns in place, the European E3 price is decreasing €15-20 which is influenced by cheap Chinese billets available in the market and Turkey withdrawing from the imports markets.

Alloys (manganese) and base metals The underlying price driver for manganese alloys is the price of manganese ore, which decreased by 28.6% from $4.20 per dry metric tonne unit (“dmtu”) (for 44% lump ore) on Cost, Insurance and Freight (“CIF”) China in January 2015 to $3.00 per dmtu in June 2015, as a result of poor demand, oversupply and aggressive competition. During the first half of 2015, prices for manganese alloys followed the trend of manganese ore. Prices of high carbon ferro manganese decreased by 7.06% (from $1,048 to $974 per tonne), and prices of silicon manganese also decreased by 7.02% (from $1,140 to $1,060 per tonne). Prices for medium carbon ferro manganese decreased by 5.13% (from $1,618 to $1,535 per tonne).The base metals used by ArcelorMittal are zinc and tin for coating, and aluminum for the deoxidization of liquid steel. ArcelorMittal partially hedges

its exposure to its base metal inputs in accordance with its risk management policies.The average price of zinc in the first half of 2015 was $2,138 per tonne, representing a decrease of 1.2% as compared to the average price for the full year 2014 ($2,164 per tonne). The January average price was $2,111 per tonne while the June average price was $2,087 per tonne, with a first half low of $1,985 per tonne on March 17 and high of $2,405 per tonne on May 6. Stocks registered at the London Metal Exchange (“LME”) warehouses stood at 464,400 tonnes as of June 30, 2015, representing a decrease of 227,200 (32.9%) tonnes compared to December 31, 2014 (when stocks registered stood at 691,600 tonnes).

EnergyElectricityIn most of the countries where ArcelorMittal operates, electricity prices have moved in line with other commodities, mostly hydrocarbon fuels.

In North America, since the beginning of 2015, yearly forward prices for electricity are giving an average price of ~$45/megawatt (“MWh”), consistent to the gas price slightly below $3/million British Thermal Unit (“MMBtu”). The 2014 low gas storage level linked to the historically cold winter conditions in first quarter is over and current working gas remains slightly above the five year average. Overall, coal is expected to account for an average of 36% of total U.S. electricity generation in 2015 and natural gas to account for 31%. One of the factors of the declining share of coal generation is the retirement of some coal-fired power plants. These plant closures are linked to both the competitiveness of gas prices (driven by the shale gas surge) and the Mercury and Air Toxics Standards regulations. During 2014, 4.1 gigawatts (“GW”) of coal capacity were retired, while 12.8 GW are expected to retire in 2015.

In Europe, less harsh winters, higher renewables installed capacity; consumption reduction



from energy efficiency actions and a decrease of energy intensive industrial footprint are keeping stress price signals in the market at bay. Aside from specific taxes (i.e. fuel and production taxes in Spain) or political uncertainty regarding nuclear (i.e. plant life extension and safety requirements in Belgium), the market remains below €40/MWh both for spot and forward prices in most European countries. Overall production capacity in Europe is comfortable in the short term but increasing environmental constraints and low market prices are pushing utilities to close gas and old coal power plants.

Oil prices have been moving to the range of $50-65/barrel (“bbl”) during the first half of 2015, which impacts the electricity production cost for peak hours where oil derivatives are used to maintain the network balance. Gas prices have decreased for countries with active gas combined cycles in their production mix.

Steam coal prices, a key driver for electricity prices, have also followed a bearish trend since November 2014 and have stabilized around $60/ton (API2 index) as no support was found on China’s demand nor India’s expected increase in consumption. All in all, electricity prices in Europe are reaching historical minimum levels. As from today, the positive factor in the short term is the CO2 market and the possibility that the EU pushes forward with the market stability reserve intended to rebalance the existing long term market.

Natural gasNatural gas is priced regionally. European prices were historically linked with petroleum prices but continuous spot market development and increasing liquidity is now prevailing in almost all countries except in poorly integrated markets (e.g., Spain, Portugal) or markets in transition from tariff based

system (e.g., Poland, Ukraine ). With increasing Liquefied Natural Gas (“LNG”) flows in Spain, 2015 could be a year of the definitive movement towards a more liquid and integrated market.

This trend is reducing the correlation and sensibility of the Western European market to oil prices volatility. North American natural gas prices trade independently of oil prices and are set by spot and future contracts, traded on the NYMEX exchange or over-the-counter. Elsewhere, prices are set on an oil derivative or bilateral basis, depending on local market conditions. International oil prices are dominated by global supply and demand conditions and are also influenced by geopolitical factors. Currently, price volatility is driven by the Organization of the Petroleum Exporting Countries (“OPEC”) production (expected to further increase), Iran oil reserves hitting the market (if nuclear agreement is found), stabilization of U.S. oil production based on fracking and overall recovery of the worldwide economy. Taking into account that oil storages are at historical high levels, an oil price rally is not expected.

So far, in 2015, the LNG market has stabilized. Supply continues to increase as new LNG production facilities continue to ramp-up in the Pacific basin over 2015, pressuring prices down from $12/MMBtu in 2014 down to $7.5/MMBtu at the end of the first half of 2015. As a consequence, LNG reloading from Europe has decreased sharply in the first half of 2015 (limited to South America) compared to 2014. The perspective start-up of LNG exports in 2016 from the United States will reinforce this trend of a “well balanced” LNG market. Demand stabilized in Asia in the context of nuclear plants restarting in Japan (step by step) and sharp competition from pipe gas in China. Increased net LNG receipts in Europe compensate for lower Russian pipe exports

and capped Groningen production.

Overall prices in Europe stabilized around $6.5/MMBtu with pressure on the longer term curve in the context of lower oil prices. The main risk to the market remains the dispute between Russia and Ukraine as it creates tension and volatility on the market with rebates under discussion.

In the United States, despite a second very cold winter in a row, unconventional gas production proved more than robust, and storages are now back at the 5 year average level (3,800 to 4,000 billion standard cubic feet expected in October 2015). Projects to build liquefaction facilities for export to Europe or Asia continue to be developed, with an early start in the first half of 2016 which could potentially push US gas prices up to keep up with the new export demand. In this context, natural gas prices in North American markets stabilize below $3/MMBtu and the forward curve remains in slight contango.

Overall forward prices for exported LNG from the US seem to be consistent with European forward prices which could help stabilize prices in current ranges on both sides of the Atlantic basin.

Ocean freight4

Ocean freight prices have decreased for the majority of the first half of 2015 primarily due to a fall in coal imports and a decline in growth of iron ore imports. This decrease has positively affected the Company’s performance for the first half of 2015.

The market has seen four consecutive quarters of decline in Chinese dry bulk imports. Nevertheless, such de-stocking creates potential for re-stocking opportunities in second half of 2015. There has been a flood of new build deliveries in the first half of 2015, but at the same time bulker demolition has also surged which has helped to curb a small

portion of the oversupply and thereby slow expected net fleet growth.

The Baltic Dry Index (“BDI”) averaged 623 points in the first half of 2015, representing a 46% decrease compared to the first half of 2014. The Capesize sector averaged $4,591/day in the first half of 2015 (compared to $14,135/day in the first half of 2014). The Panamax sector averaged $4,999/day (compared to $8,399/day in the first half of 2014).

Impact of exchange rate movements During the first half of 2015, the launch of the ECB quantitative easing program, a weaker currency and lower oil prices supported a recovery in the euro area. The euro started the year at around 1.20 against the U.S. dollar before plummeting to a 10 year low of 1.0450. Despite growing concerns about the situation in Greece, the euro recovered to almost 1.12 to the U.S. dollar at the end of June. During the first half of the year, the U.S. dollar moved to an all-time high against the Turkish lira (from 2.27 to 2.80), spiked against the South African rand (from 10.80 to 12.65), strengthened against the Mexican peso (from 13.50 to 15.70) and against the Brazilian real (from 2.70 to 3.12). The U.S. dollar reached a new record high of 30 against the Ukrainian hryvna in February, explained by strong hard currency demand, continuing unrest, gloomy GDP outlook and high inflation, but finally stabilized at around 20. The Russian ruble showed some resilience, helped by the normalization of its monetary policy, and strengthened against the U.S. dollar from 64 in January to 48 in May. A strong U.S. dollar together with a slowing energy sector, weak investments, and declining corporate margins led to poor U.S. growth in the beginning of the year.

Because a substantial portion of ArcelorMittal’s assets,

4 Sources: Baltic Dry Index, Clarksons Shipping Intelligence Network, Fearnleys, SSY




liabilities, sales and earnings are denominated in currencies other than the U.S. dollar (its reporting currency), ArcelorMittal has exposure to fluctuations in the values of these currencies relative to the U.S. dollar. These currency fluctuations, especially the fluctuations of the U.S. dollar relative to the euro, as well as fluctuations in the currencies of the other countries in which ArcelorMittal has significant operations and sales, can have a material impact on its results of operations. In order to minimize its currency exposure, ArcelorMittal enters into hedging transactions to lock-in a set exchange rate, as per its risk management policies.

Trade and import competitionEurope5

In 2014, finished steel imports are estimated to have increased by 17.8% year-on-year to around 21.7 million tonnes with the growth mainly due to increased shipments originating from the Commonwealth of Independent States (“CIS”) and China. However, finished steel demand also strengthened, increasing by approximately 3.5%. As a result, the import penetration rate for 2014 is estimated to have risen to approximately 14.8%.

Apparent steel consumption (“ASC”) continued to grow during the first half of 2015, increasing by approximately 1% year-on-year, albeit more slowly than the 6% year-on-year increase recorded over the first half of 2014. The penetration rate of total steel imports in the first half of 2015 remained at roughly the same level as that recorded in the first half of 2014 (15.5%), as imports also increased by approximately the same margin as ASC. Semi-finished steel imports, however, actually declined while finished steel imports increased by over 7% during the first half of 2015, mainly due to an increase in Chinese origin shipments.

United States6

During 2014, finished steel imports grew strongly, up 35.9% year-on-year, to 30.6 million tonnes, the highest level since 2006. Penetration increased to 28.4%, again the highest level since 2006, with imports the major reason for the 11.4% increase in apparent steel demand during 2014. Overall steel imports were up 37.9% during 2014, as imports of semis increased by over 59.8% year-on-year.

While imports continued to increase strongly at the start of the year, increasing by 21% year-on-year during the first quarter of 2015, volumes dropped significantly during the second quarter, declining by 14% year-on-year. Consequently, imports increased by a more sustainable rate of 2.7% year-on-year during the first half of 2015. Meanwhile, apparent consumption is estimated to have declined by over 2% during the first half of 2015 due to destocking activity. As a result, imports penetration rose to 30.3% during the first half of the year.

Consolidation in the steel and mining industriesThe global steel and mining industries experienced consolidation during the ten years prior to 2008. After pausing during the credit crisis and global economic downturn of 2008-2009, merger and acquisition activity of various steel and mining players, including Chinese and Indian companies, increased at a rapid pace. However, given the current economic uncertainties in developed economies, combined with a slowdown in emerging regions such as China and India, consolidation transactions decreased significantly in terms of number and value after 2012. This is expected to continue in 2015, unless and until prices stabilize and supply and demand balance

out in the context of worldwide structural overcapacity.

As developed markets continue to present fewer opportunities for consolidation, steel industry consolidation also began to slow down substantially in China in 2012. Despite being a key initiative of the Chinese government’s five-year plan issued in March 2011, the concentration process of the steel industry that was expected to reduce overcapacity, rationalize steel production based on obsolete technology, improve energy efficiency, achieve environmental targets and strengthen the bargaining position of Chinese steel companies in price negotiations for iron ore declined as a result of the slowing economy. This situation has affected the Chinese government’s objective for the top ten Chinese steel producers to account for 60% of national production by 2015 and for at least two producers to reach 100 million ton capacity in the next few years. However, the Chinese government is considering scrapping a ban on overseas control which was imposed in 2005, enabling non-Chinese companies to make acquisitions in China, which could drive merger and acquisition activity if implemented. In May 2015, China’s natural resource ministry announced plans to consolidate firms in the mining industry including China Aluminum Corporation, Xiamen Tungsten Co Ltd, Inner Mongolia BaoTou Steel Union Co Ltd, China Minmetals Corporation, Ganzhou Rare Earth Group Co Ltd and Guangdong Rare Earth Industrial Group Co Ltd.

Merger and acquisition activity is expected to remain relatively active in the Indian steel and mining industry though at a slower pace considering the current economic slowdown. The country has become the world’s third largest steel consumer after China and the

United States and is the world’s third largest steel producer after China and Japan.

Recent and expected future industry consolidation should foster the ability of the steel industry to maintain more consistent performance through industry cycles by achieving greater efficiencies and economies of scale, and should lead to improved bargaining power relative to customers and, crucially, suppliers, which tend to have a higher level of consolidation. The wave of steel industry consolidation in the previous years has followed the lead of raw materials suppliers, which occurred in an environment of rising prices for iron ore and most other minerals used in the steel-making process. The merger of Cliffs Natural Resources and Consolidated Thompson in 2011 was a significant consolidation move in North America which, at the same time, strengthened vertical relationships into the Chinese steel market. In the context of volatile prices and an overall decline since 2011, which is expected to continue in 2015 given the large additional supply expected to come on line, iron ore producers continue to seek consolidation that would strengthen their options whatever the direction of future price trends. There are still only four primary iron ore suppliers in the world market. Consolidation among other mining companies has continued, as evidenced by the completion of the merger between Xstrata and Glencore on May 2, 2013.

Operating results ArcelorMittal reports its operations in five segments: NAFTA, Brazil, Europe, ACIS and Mining.

Key IndicatorsThe key performance indicators that ArcelorMittal’s management uses to analyze performance and operations are

5 Source: Eurostat trade data to May 2015, estimates for June 2015.6 Source: U.S. Department of Commerce, customs census data up to May 2015 and June 2015 import license data.


the lost time injury frequency (“LTIF”) rate, sales, average steel selling prices, steel shipments, iron ore and coal production and operating income. Management’s analysis of liquidity and capital resources is driven by operating cash flows.

Six months ended June 30, 2015 as compared to six months ended June 30, 2014

Health and safetyThrough the Company’s core values of sustainability, quality and leadership, it operates responsibly with respect to the health, safety and wellbeing of its employees, contractors and the communities in which it operates.

Health and safety performance, based on the Company’s personnel figures and contractors LTIF rate, improved to 0.79 for the six months ended June 30, 2015 as compared to 0.86 for the six months ended June 30, 2014. Significant improvements in health and safety performance were made in the Brazil, Europe, and ACIS segments, offset by deterioration in the Mining and NAFTA segments. The Company’s efforts to improve the Group’s health and safety record continues and remains focused on both further reducing the rate of severe injuries and preventing fatalities.

Own personnel and contractorsFor the six months ended June 30,

Lost time injury frequency rate 2014 2015Mining 0.54 0.59NAFTA 0.95 0.97Brazil 0.72 0.59Europe 1.23 1.05ACIS 0.51 0.47Total Steel 0.92 0.82Total (Steel and Mining) 0.86 0.79

Sales, operating income, crude steel production, steel shipments, average steel selling prices and mining productionArcelorMittal’s sales were lower at $34.0 billion for the six months ended June 30, 2015, down from $40.5 billion for the six months ended June 30, 2014, primarily due to 18% lower average steel selling prices and

46% lower seaborne iron ore prices, partially offset by 3% higher steel shipments and 2% higher marketable iron ore shipments.

ArcelorMittal’s steel shipments increased 3% to 43.8 million tonnes for the six months ended June 30, 2015, from 42.4 million tonnes for the six months ended June 30, 2014. Average steel selling prices decreased by 18% for the six months ended June 30, 2015 as compared to the six months ended June 30, 2014.

ArcelorMittal had iron ore and coal production (own production of iron ore and coal, excluding supplies sourced under strategic contracts) of 31.9 million tonnes and 3.1 million tonnes, respectively, for the six months ended June 30, 2015, an increase of 1.6% and decrease of 13.2%, as compared to 31.4 million tonnes and 3.6 million tonnes, respectively, for the six months ended June 30, 2014. The increase in iron ore production resulted primarily from increased production in Canada while the decrease in coal production was mainly related to lower production at the Company’s U.S. coal operations (Princeton) and the disposal of the Kuzbass coal mines in Russia during the fourth quarter of 2014.

ArcelorMittal’s operating income for the six months ended June 30, 2015 amounted to $1,150 million, compared to operating income of $1,506 million for the six months ended June 30, 2014. Operating income decreased primarily due to lower average steel selling prices partially offset by an increase in shipments.

Operating income for the six months ended June 30, 2015 was negatively affected by a $69 million provision primarily related to onerous hot rolled and cold rolled contracts in the US and an impairment charge of $19 million relating to the closure of the Georgetown facility in the US.

Operating income for the six months ended June 30, 2014 was negatively affected by a $90 million charge following the settlement of antitrust litigation in the United States.

Cost of sales consists primarily of purchases of raw materials necessary for steel-making (iron ore, coke and coking coal, scrap and alloys) and electricity cost. Cost of sales for the six months ended June 30, 2015 was $31.6 billion, decreasing as compared to $37.5 billion for the six months ended June 30, 2014, which was driven by a decline in raw material prices. Selling, general and administrative expenses (“SG&A”) for the six months ended June 30, 2015 were slightly lower at $1.3 billion. as compared to $1.5 billion for the six months ended June 30, 2014. SG&A represented 3.8% of sales for the six months ended June 30, 2015, as compared to 3.6% for the six months ended June 30, 2014.




The following tables and discussion summarize ArcelorMittal’s performance by reportable segment for the six months ended June 30, 2015 as compared with the six months ended June 30, 2014.

Sales for the six months ended June 30,1

Operating Income for the six months ended June 30,

Segment2014

(in $ millions)2015

(in $ millions)2014

(in $ millions)2015

(in $ millions)NAFTA 10,351 9,322 77 (52)Brazil 4,787 4,286 592 566 Europe 20,840 17,147 414 704 ACIS 4,307 3,370 5 7 Mining 2,639 1,722 507 (78)Other and eliminations (2,432) (1,839) (89)2 32 Total consolidated operating income 40,492 34,008 1,506 1,150

1 Segment amounts are prior to inter-segment eliminations.2 Total adjustments to segment operating income and other reflects certain adjustments made to operating income of the segments to reflect corporate costs, income from non-steel

operations (e.g. energy, logistics and shipping services) and the elimination of stock margins between the segments. See table below.

Total adjustments to segment operating income and other Six months ended June 30,2014

(in $ millions)2015

(in $ millions)Corporate and shared services 1 (75) 38 Financial activities (6) (11)Shipping and logistics (4) (34)Intragroup stock margin eliminations 17 23 Depreciation and impairment (21) (13)Total adjustments to segment operating income and other (89) 3

1 Includes primarily staff and other holding costs and results from shared service activities.

NAFTAPerformance for the six months

ended June 30,(in millions of USD unless otherwise shown) 2014 2015Sales 10,351 9,322 Operating income / (loss) 77 (52)Crude steel production (million tonnes) 12,409 11,683 Steel shipments (million tonnes) 11,403 11,105 Average steel selling price (USD/tonne) 848 760

Sales in the NAFTA segment decreased 10% to $9.3 billion for the six months ended June 30, 2015, from $10.4 billion for the six months ended June 30, 2014, mainly due to a 10% decrease in average steel selling prices and a 3% decrease in steel shipments.

Operating loss for the NAFTA segment for the six months ended June 30, 2015 was $52 million, as compared with operating income of $77 million for the six months ended June 30, 2014. Operating loss for the six months ended June 30, 2015 was negatively affected by a $69 million provision primarily related to onerous hot rolled and cold rolled contracts in the US and an impairment of $19 million relating to the closure of the Georgetown facility in the US as well as lower volumes and lower average selling prices as compared to the six months ended June 30, 2014. Operating income for the six months ended June 30, 2014 was negatively affected by a $90 million charge following the settlement of antitrust litigation in the United States and the severe weather conditions during the first half of 2014.

Crude steel production in the NAFTA segment decreased by 6% to 11.7 million tonnes for the six months ended June 30, 2015 as compared to 12.4 million tonnes for the six months ended June 30, 2014 to align with weaker demand.

Total steel shipments in the NAFTA segment decreased 3% to 11.1 million tonnes for the six months ended June 30, 2015, from 11.4 million tonnes for the six months ended June 30, 2014. Steel shipments for the six months ended June 30, 2015 were negatively affected by increased imports. Steel shipments for the six months ended June 30, 2014 were impacted by severe winter weather conditions in the United States.

Average steel selling price in the NAFTA segment decreased 10% to $760 per tonne for the six months ended June 30, 2015 from $848 per tonne for the six months ended June 30, 2014, primarily due to lower domestic prices impacted by falling raw material prices and import pressures.



BrazilPerformance for the six months

ended June 30,(in millions of USD unless otherwise shown) 2014 2015Sales 4,787 4,286 Operating income / (loss) 592 566 Crude steel production (million tonnes) 4,795 5,809 Steel shipments (million tonnes) 4,637 5,542 Average steel selling price (USD/tonne) 914 704

Sales in the Brazil segment were $4.3 billion for the six months ended June 30, 2015 as compared to $4.8 billion for the six months ended June 30, 2014, primarily due to lower average selling prices partially offset by higher steel shipments following the restart of Blast Furnace #3 at Tubarão in July 2014.

Operating income for the Brazil segment for the six months ended June 30, 2015 was $566 million, as compared with operating income of $592 million for the six months ended June 30, 2014. Operating income for the six months ended June 30, 2015 was negatively affected by lower average steel selling prices offset in part by higher steel shipments (following the restart of the Tubarão furnace in July 2014) and the improvement in the Company’s tubular operations.

Crude steel production increased by 21% to 5.8 million tonnes for the six months ended June 30, 2015 as compared with 4.8 million tonnes for the six months ended June 30, 2014 as a result of the restart of the Tubarão furnace in July 2014.

Total steel shipments in the Brazil segment were 5.5 million tonnes for the six months ended June 30, 2015 as compared to 4.6 million tonnes for the six months ended June 30, 2014 primarily driven by increased slab exports from Brazil. Steel shipments for the six months ended June 30, 2014 were negatively affected by operational issues in the hot strip mill in Tubarão.

Average steel selling price in the Brazil segment decreased 23% to $704 per tonne for the six months ended June 30, 2015 from $914 per tonne for the six months ended June 30, 2014, primarily driven by a weaker Brazilian real, weaker product mix due to increased slab exports post the restart of the Tubarão furnace described above and a decline in international prices.

EuropePerformance for the six months


Sales in the Europe segment decreased 18% to $17.1 billion for the six months ended June 30, 2015 as compared to $20.8 billion for the six months ended June 30, 2014, primarily due to a 22% decrease in average steel selling prices which were negatively impacted by the USD appreciation against the Euro partially offset by an increase in steel shipments by 7%.

Operating income for the Europe segment for the six months ended June 30, 2015 was $704 million, as compared with operating income of $414 million for the six months ended June 30, 2014. Operating income for the six months ended June 30, 2015 was positively impacted by improved market conditions and the realized benefits of cost optimization efforts as well as increased shipments and the effects of the USD appreciation against the Euro, offset by lower average steel selling prices.

Crude steel production for the Europe segment increased 5% to 23 million tonnes for the six months ended June 30, 2015, from 21.8 million tonnes for the six months ended June 30, 2014 primarily due to fewer facilities under maintenance during the six month period ended June 30, 2015 and to align with increased demand.

Total steel shipments in the Europe segment increased 7% to 21.6 million tonnes for the six months ended June 30, 2015, from 20.2 million tonnes for the six months ended June 30, 2014. The increase was primarily driven by improved demand compared to the first half of 2014.

Average steel selling price in the Europe segment decreased 22% to $625 per tonne for the six months ended June 30, 2015 from $804 per tonne for the six months ended June 30, 2014, largely due to exchange rate effects and a marginal decline in local average steel prices, partially reflecting lower raw material costs.



ACISPerformance for the six months


Sales in the ACIS segment decreased 22% to $3.4 billion for the six months ended June 30, 2015 as compared to $4.3 billion for the six months ended June 30, 2014, primarily due to an 18% decrease in average steel selling prices and a 4% decrease in steel shipments.

Operating income for the ACIS segment for the six months ended June 30, 2015 was $7 million, as compared with operating income of $5 million for the six months ended June 30, 2014. Operating income for the six months ended June 30, 2015 was positively affected by lower costs particularly in Ukraine due to currency devaluation, offset by lower steel shipments and lower average steel selling prices.

Crude steel production for the ACIS segment increased 4% to 7.3 million tonnes for the six months ended June 30, 2015, from 7.0 million tonnes for the six months ended June 30, 2014 primarily driven by higher production in South Africa following the Newcastle reline completion.

Total steel shipments in the ACIS segment decreased 4% to 6.2 million tonnes for the six months ended June 30, 2015, from 6.5 million tonnes for the six months ended June 30, 2014. Steel shipments for the six months ended June 30, 2015 were negatively affected by lower volumes in South Africa and lower shipments in Ukraine impacted by a weaker CIS market.

Average steel selling price in the ACIS segment decreased 18% to $477 per tonne for the six months ended June 30, 2015 from $580 per tonne for the six months ended June 30, 2014, primarily due to lower global steel prices and weak demand in both CIS and South Africa.

MiningSales and operating results for the

six months ended June 30,(in millions of USD unless otherwise shown)

2014 (in $ millions)

2015 (in $ millions)

Sales 2,639 1,722 Operating income / (loss) 507 (78)

Mining shipments (million tonnes) 1 Six months ended June 30, 2014 Six months ended June 30, 2015 Iron ore shipped externally 6.7 6.5 Iron ore shipped internally and reported at market price 3 13.1 13.6Iron ore shipped externally and internally and reported at market price 3 19.8 20.1Iron ore shipped internally and reported at cost-plus 3 10.4 10.5Total iron ore shipments 2 30.2 30.6 Coal shipped externally 1.0 0.7 Coal shipped internally and reported at market price 3 1.1 0.6Coal shipped externally and internally and reported at market price 3 2.1 1.3Coal shipped internally and reported at cost-plus 3 1.6 1.7Total coal shipments 4 3.7 3.0

1 There are three categories of sales: (1) “External sales”: mined product sold to third parties at market price; (2) “Market-priced tonnes”: internal sales of mined product to ArcelorMittal facilities reported at prevailing market prices; (3) “Cost-plus tonnes”: internal sales of mined product to ArcelorMittal facilities on a cost-plus basis. The determinant of whether internal sales are reported at market price or reported at cost-plus is whether or not the raw material could practically be sold to third parties (i.e., there is a potential market for the product and logistics exist to access that market).

2 Total of all finished products of fines, concentrate, pellets and lumps and includes tonnes shipped externally and internally and reported at market price as well as tonnes shipped internally on a cost-plus basis.

3 Market-priced tonnes represent amounts of iron ore and coal from ArcelorMittal mines that could practically be sold to third parties. Market-priced tonnes that are transferred from the Mining segment to the Company’s steel producing segments are reported at the prevailing market price. Shipments of raw materials that do not constitute market-priced tonnes are transferred internally on a cost-plus basis.

4 Total of all finished products of coal and includes tonnes shipped externally and internally and reported at market price as well as tonnes shipped internally on a cost-plus basis.


Iron ore production (million metric tonnes) 1 Type Product

Six months ended June 30,

2014


2015

Own minesNorth America 2 Open pit Concentrate, lump, fines and pellets 17.7 19.1South America Open pit Lump and fines 2.2 1.8Europe Open pit Concentrate and lump 1.1 1.1Africa Open pit / Underground Fines 3.0 2.6Asia, CIS & Other Open pit / Underground Concentrate, lump, fines and sinter feed 7.4 7.3Total own iron ore production 31.4 31.9Strategic long-term contracts - iron oreNorth America 3 Open pit Pellets 2.8 2.5Africa 4 Open pit Lump and fines 2.8 2.8Total strategic long-term contracts - iron ore 5.6 5.3Total 37.0 37.21 Total of all finished production of fines, concentrate, pellets and lumps.2 Includes own mines and share of production from Hibbing (United States, 62.30%) and Peña (Mexico, 50%).3 Consists of a long-term supply contract with Cleveland Cliffs for purchases made at a previously set price, adjusted for changes in certain steel prices and inflation factors.4 Includes purchases under an interim strategic agreement with Sishen Iron Ore Company (Proprietary) Limited (“SIOC”) which was extended on December 13, 2012 and became

effective on January 1, 2013, pursuant to which SIOC supplied a maximum annual volume of 4.8 million tonnes of iron ore at a weighted average price of $65 per tonne. On November 5, 2013, ArcelorMittal and SIOC entered into an agreement establishing long-term pricing arrangements for the supply of iron ore by SIOC to ArcelorMittal. Pursuant to the terms of the agreement, which became effective on January 1, 2014, ArcelorMittal may purchase from SIOC up to 6.25 million tonnes iron ore per year, complying with agreed specifications and lump-fine ratios. The price of iron ore sold to ArcelorMittal by SIOC is determined by reference to the cost (including capital costs) associated with the production of iron ore from the DMS Plant at the Sishen mine plus a margin of 20%, subject to a ceiling price equal to the Sishen Export Parity Price at the mine gate. While all prices are referenced to Sishen mine costs (plus 20%) from 2016, the parties agreed to a different price for certain pre-determined quantities of iron ore for the first two years of the 2014 Agreement.

Coal production (million metric tonnes)


2014


2015

Own minesNorth America 1.03 0.79Asia, CIS & Other 2.53 2.30Total own coal production 3.56 3.09Strategic long-term contracts - coalNorth America 1 0.18 0.05Africa 2 0.20 -Total strategic long-term contracts - coal 0.38 0.05Total 3.94 3.14

Sales in the Mining segment decreased 35% to $1.7 billion for the six months ended June 30, 2015 from $2.6 billion for the six months ended June 30, 2014. Sales of marketable iron ore and coal (internal market-priced and sales to external customers) decreased 44% to $1.2 billion for the six months ended June 30, 2015 from $2.1 billion for the six months ended June 30, 2014. Sales to external customers were $0.42 billion for the six months ended June 30, 2015 representing a 41% decrease compared to $0.71 billion for the six months ended June 30, 2014. The decrease in sales to external customers was primarily due to lower shipments from own mines for iron ore and coal and lower average iron ore and coal selling prices. Iron ore shipments to external customers decreased by 3% from 6.7 million tonnes for the six months ended June 30, 2014 to 6.5 million tonnes for the six months ended June 30, 2015. Sales of

marketable iron ore (internal market-priced and sales to external customers) increased by 2% from 19.8 million tonnes for the six months ended June 30, 2014 to 20.1 million tonnes for the six months ended June 30, 2015. The increase in external shipments was due to increased production at the Company’s Canadian operations offset partially by lower Liberia and Brazil shipments. Coal shipments to external customers decreased 30% from 1.0 million tonnes to 0.7 million tonnes. With respect to lower average selling prices, for example, the average iron ore spot price of $60 per tonne CFR China and the average spot price for hard coking coal FOB Australia at $96 per tonne were 46% and 18% lower for the six months ended June 30, 2015 than for the six months ended June 30, 2014, respectively. It should be noted, however, that there may be no direct correlation between reference prices and actual selling

prices in various regions at a given time.

Operating loss attributable to the Mining segment for the six months ended June 30, 2015 was $78 million, as compared with operating income of $507 million for the six months ended June 30, 2014 primarily driven by lower seaborne iron ore market prices, partially offset by lower costs and restructuring of the Company’s coal operations, including the sale of the Kuzbass coal mines. Iron ore marketable volume for the six months ended June 30, 2015 was 20.1 million tonnes, compared to 19.8 million tonnes for the six months ended June 30, 2014, representing an increase of 2%. Coal marketable volume for the six months ended June 30, 2015 was 1.3 million tonnes, compared to 2.1 million tonnes for the six months ended June 30, 2014, representing a decrease of 38%. Cost of sales was lower at $1.7 billion for the six months ended June 30, 2015 as compared to $2.0 billion for the six months ended June 30, 2014.

Own iron ore production (not including supplies under strategic long-term contracts) in the six months ended June 30, 2015 was 31.9 million metric tonnes, 2% higher than in the six months ended June 30, 2014, primarily due to higher production at the Company’s Canadian operations.

Own coal production (not including supplies under strategic long-term contracts) in the six months ended June 30, 2015 was 3.1 million metric

tonnes, representing a decrease of 13% compared to the six months ended June 30, 2014, mainly related to lower production at the Company’s USA coal operations (Princeton) and the disposal of the Kuzbass coal mines in Russia during the fourth quarter of 2014.

Investments in associates, joint ventures and other investmentsIncome from investments in associates, joint ventures and other investments was $123 million for the six months ended June 30, 2015, compared to income of $154 million for the six months ended June 30, 2014. The income was primarily related to the annual dividend received from Erdemir. The income for the six months ended June 30, 2014 was primarily related to the annual dividend received from Erdemir, improved performance of Spanish entities and the share of profits of the Calvert operations.

Financing costsNet financing costs for the six months ended June 30, 2015 were stable at $1.5 billion as compared to the six months ended June 30, 2014.

Net interest expense (interest expense less interest income) decreased to $648 million for the six months ended June 30, 2015 as compared to $809 million for the six months ended June 30, 2014. The reduction is attributable to both lower gross debt outstanding and lower average cost following the


1 Includes strategic agreement - prices on a fixed price basis.2 Includes long term lease - prices on a cost-plus basis.


repayments of convertible bonds in the second quarter of 2014 and bonds in the fourth quarter of 2014.

Foreign exchange and other net financing costs (which includes foreign currency swaps, bank fees, interest on pensions, impairments of financial instruments, revaluation of derivative instruments, and other charges that cannot be directly linked to operating results) for the six months ended June 30, 2015 amounted to $829 million, as compared to costs of $707 million for the six months ended June 30, 2014. Foreign exchange and other net financing costs include a foreign exchange loss of $423 million as compared to income of $11 million for the six months ended June 30, 2014 mainly related to the appreciation of the US dollar against the Euro (7.8% for the six months ended June 30, 2015 as compared to 1% for the six months ended June 30, 2014) and the Brazilian Real (14.4% for the six months ended June 30, 2015 as compared to 6.4% for the six months ended June 30, 2014). This foreign exchange loss primarily relates to the impact of the U.S. dollar appreciation on Euro denominated deferred tax assets partially offset by foreign exchange income on euro debt.

In addition, foreign exchange and other net financing costs for the six months ended June 30, 2014 included a payment following the termination of the Senegal greenfield project, non-cash charges for the premiums related to call options on treasury shares expired following the maturity of Euro convertible bonds and hedging instruments.

Income taxArcelorMittal’s consolidated income tax expense (benefit) is affected by the income tax laws and regulations in effect in the various countries in which it operates and the pre-tax results of its subsidiaries in each of these countries, which can vary from year to year. ArcelorMittal operates in jurisdictions, mainly in Eastern Europe and Asia, which have a structurally lower corporate income tax rate than the statutory tax rate as in effect in Luxembourg (29.22%), as well as in jurisdictions, mainly in Western Europe and the Americas which have a structurally higher corporate income tax rate.

ArcelorMittal recorded a consolidated income tax expense of $334 million for the six months ended June 30, 2015, as compared to a consolidated income tax expense of $217 million for the six months ended June 30, 2014.

Non-controlling interestsNet income attributable to non-controlling interests for the six months ended June 30, 2015 was $11 million as compared with net income attributable to non-controlling interests of $80 million for the six months ended June 30, 2014. Net income attributable to non-controlling interests primarily relates to the minority shareholders’ share of net income recorded in ArcelorMittal Mines Canada and Belgo Bekaert Arames in Brazil partly offset by a net loss in ArcelorMittal Liberia.

Net loss attributable to equity holders of the parent ArcelorMittal’s net loss attributable to equity holders of the parent for the six months ended June 30, 2015 was $549 million as compared to net loss attributable to equity holders of the parent of $153 million for the six months ended June 30, 2014, for the reasons discussed above.

Liquidity and capital resources ArcelorMittal’s principal sources of liquidity are cash generated from its operations and its credit facilities at the corporate level.

Because ArcelorMittal is a holding company, it is dependent upon the earnings and cash flows of, and dividends and distributions from, its operating subsidiaries to pay expenses and meet its debt service obligations. Significant cash or cash equivalent balances may be held from time to time at the Company’s international operating subsidiaries, including in particular those in France, where the Company maintains a cash management system under which most of its cash and cash equivalents are centralized, and in Argentina, Brazil, Canada, Morocco, South Africa, Ukraine, USA, and Venezuela. Some of these operating subsidiaries have debt outstanding or are subject to acquisition agreements that impose restrictions on such operating subsidiaries’ ability to pay dividends, but such restrictions are not significant in the context of ArcelorMittal’s

overall liquidity. Repatriation of funds from operating subsidiaries may also be affected by tax and foreign exchange policies in place from time to time in the various countries where the Company operates, though none of these policies is currently significant in the context of ArcelorMittal’s overall liquidity.

In management’s opinion, ArcelorMittal’s credit facilities are adequate for its present requirements.

As of June 30, 2015, ArcelorMittal’s cash and cash equivalents, including restricted cash amounted to $4.7 billion as compared to $4.0 billion as of December 31, 2014. In addition, ArcelorMittal had available borrowing capacity of $6.0 billion under its credit facilities as of June 30, 2015, unchanged from December 31, 2014.

As of June 30, 2015, ArcelorMittal’s total debt, which includes long-term debt and short-term debt, was $21.3 billion, compared to $19.8 billion (excluding $0.1 billion of debt classified as held for sale) as of December 31, 2014. Net debt (defined as long-term debt plus short-term debt, less cash and cash equivalents and restricted cash) was $16.6 billion as of June 30, 2015, up from $15.8 billion at December 31, 2014. Net debt increased primarily due to working capital deployment and dividend payments partly offset by the impact of the appreciation of the U.S. dollar against the euro. Most of the external debt is borrowed by the parent company on an unsecured basis and bears interest at varying levels based on a combination of fixed and variable interest rates. Gearing (defined as net debt divided by total equity) at June 30, 2015 was 42% as compared to 35% at December 31, 2014.

The margin applicable to ArcelorMittal’s principal credit facilities and the coupons on certain of its outstanding bonds are subject to adjustment in the event of a change in its long-term credit ratings. Due to, among other things, to the weak steel industry outlook and ArcelorMittal’s credit metrics and level of debt, Standard & Poor’s, Moody’s and Fitch downgraded the Company’s rating to below “investment grade” in August,

November and December 2012, respectively. On February 3, 2015, Standard & Poor’s further downgraded ArcelorMittal’s credit rating to BB with a stable outlook. In addition, Moody’s currently has ArcelorMittal’s credit rating on negative outlook. These downgrades triggered the interest rate “step-up” clauses in most of the Company’s outstanding bonds, resulting in an incremental interest expense of $63 million for the six months ended June 30, 2015, and $50 million for the six months ended June 30, 2014, compared to interest expense expected prior to the downgrades.

ArcelorMittal’s principal credit facility, which is the $6 billion revolving credit facility incorporating a first tranche of $2.5 billion maturing on April 30, 2018 and a second tranche of $3.5 billion maturing on April 30, 2020, contains restrictive covenants. Among other things, these covenants limit encumbrances on the assets of ArcelorMittal and its subsidiaries, the ability of ArcelorMittal’s subsidiaries to incur debt and the ability of ArcelorMittal and its subsidiaries to dispose of assets in certain circumstances. These agreements also require compliance with a financial covenant, as summarized below.

The Company must ensure that the ratio of “Consolidated Total Net Borrowings” (consolidated total borrowings less consolidated cash and cash equivalents) to “Consolidated EBITDA” (the consolidated net pre-taxation profits of the ArcelorMittal group for a Measurement Period, subject to certain adjustments as set out in the facilities) does not, at the end of each “Measurement Period” (each period of 12 months ending on the last day of a financial half-year or a financial year of the Company), exceed a certain ratio, referred to by the Company as the “Leverage ratio”. ArcelorMittal’s principal credit facilities set this ratio to 4.25 to 1, whereas certain facilities have a ratio of 4.0 to 1. As of June 30, 2015, the Company was in compliance with both ratios.



Non-compliance with the covenants in the facilities described above would entitle the lenders under such facilities to accelerate the Company’s repayment obligations. The Company was in compliance with the financial covenants in the agreements related to all of its borrowings as of June 30, 2015.

As of June 30, 2015, ArcelorMittal had guaranteed approximately $0.3 billion of debt of its operating subsidiaries. ArcelorMittal’s debt facilities have provisions whereby the acceleration of the debt of another borrower within the ArcelorMittal group could, under certain circumstances, lead to acceleration under such facilities. The following table summarizes the repayment schedule of ArcelorMittal’s outstanding indebtedness, which includes short-term and long-term debt, as of June 30, 2015.

Repayment Amounts per Year (in billions of $)Type of Indebtedness as of June 30, 2015 Q315 Q415 2016 2017 2018 2019 2020 >2020 Total

Bonds 1.0 - 1.6 2.5 2.5 2.3 2.2 7.0 19.1Long-term revolving credit lines - $2.5 billion tranche of $6 billion revolving credit facility - - - - - - - - -- $3.5 billion tranche of $6 billion revolving credit facility - - - - - - - - -Commercial paper 1 0.2 - - - - - - - 0.2Other loans 0.2 0.1 0.9 0.2 0.1 0.2 0.1 0.2 2.0

Total Debt 1.4 0.1 2.5 2.7 2.6 2.5 2.3 7.2 21.31 Commercial paper is expected to continue to be rolled over in the normal course of business

The average debt maturity of the Company was 6.3 years as of June 30, 2015, as compared to 6.2 years as of December 31, 2014.

Financings

Principal credit facilities On April 30, 2015, ArcelorMittal signed a $6 billion revolving credit facility which incorporates a first tranche of $2.5 billion maturing on April 30, 2018 and a second tranche of $3.5 billion maturing on April 30, 2020. The facility may be used for general corporate purposes and replaces the $2.4 billion revolving credit facility agreement dated May 6, 2010 and the $3.6 billion revolving credit facility agreement dated March 18, 2011. As of June 30, 2015, the $6 billion revolving credit facility remains fully available.

On September 30, 2010, ArcelorMittal entered into the $500 million revolving multi-currency letter of credit facility (the “Letter of Credit Facility”). The Letter of Credit Facility was used by the Company and its subsidiaries for the issuance of letters of credit and other instruments and matures on September 30, 2016. The terms of the letters of credit and other instruments contain certain restrictions as to duration. The Letter of Credit Facility was amended on October 26, 2012 to reduce its amount to $450 million. On September 30, 2014, the Company refinanced its Letter of Credit Facility by entering into

a $350 million revolving multi-currency letter of credit facility.

2015 Capital markets transactions and other outstanding loans and debt securitiesOn July 3, 2015, ArcelorMittal completed the offering of CHF 225 million 2.5% Notes due July 3, 2020, issued under the Company’s Euro Medium Term Notes Programme. The proceeds of the issuance will be used to repay or prepay existing indebtedness.

On July 2, 2015, the Company redeemed its $1 billion 4.5% Unsecured Notes due August 5, 2015 prior to their scheduled maturity for a total amount of $1,022 million, including premium and accrued interest.

On June 1, 2015, ArcelorMittal completed the offering of $500 million 5.125% Notes due June 1, 2020 and $500 million 6.125% Notes due June 1, 2025, issued under the Company’s automatic shelf registration statement filed with the U.S. Securities and Exchange Commission (“SEC”) (including a prospectus). The proceeds of the issuance were used to repay existing indebtedness, in particular the early redemption of bonds maturing in August 2015.

On April 9, 2015, ArcelorMittal completed the offering of €400 million Floating Rate Notes due April 9, 2018 and €500 million 3.00% Notes due April 9, 2021 issued under the Company’s Euro Medium Term Notes Programme. The proceeds of the issuance were used for general corporate purposes.

On June 10, 2014, ArcelorMittal entered into an agreement for financing with a financial institution for $1.0 billion. The financial institution had the right to request early repayment once per year beginning in February 2015 until the final maturity on April 20, 2017. On February 13, 2015, the Company elected to make an early repayment of such financing.

On January 14, 2015, ArcelorMittal completed the offering of €750 million 3.125% Notes due January 14, 2022 issued under the Euro Medium Term Notes Programme. The proceeds of the issuance were used for general corporate purposes.

During the six months ended June 30, 2014, ArcelorMittal entered into certain short-term committed bilateral credit facilities. The facilities were extended in 2015. As of June 30, 2015 the facilities, totalling

approximately $0.8 billion, remain fully available.

Additional information regarding the Company’s outstanding loans and debt securities is set forth in Note 17 of ArcelorMittal’s consolidated financial statements for the year ended December 31, 2014 and Note 8 of ArcelorMittal’s condensed consolidated financial statements for the period ended June 30, 2015.

True sale of receivables (“TSR”) programsThe Company has established a number of programs for sales without recourse of trade accounts receivable to various financial institutions (referred to as True Sale of Receivables (“TSR”)) for an aggregate amount of $5,267 million as of June 30, 2015. This amount represents the maximum amounts of unpaid receivables that may be sold and outstanding at any given time. Of this amount, the Company has utilized $5,015 million and $4,778 million as of December 31, 2014 and as of June 30, 2015, respectively. Through the TSR programs, certain operating subsidiaries of ArcelorMittal surrender the control, risks and benefits associated with the accounts receivable sold; therefore, the




amount of receivables sold is recorded as a sale of financial assets and the balances are removed from the consolidated statements of financial position at the moment of sale. The total amount of receivables sold under TSR programs and derecognized in accordance with IAS 39 for the six months ended June 30, 2014 and 2015 was $19.4 billion and $17.2 billion, respectively (with amounts of receivables sold converted to U.S. dollars at the monthly average exchange rate). Expenses incurred under the TSR programs (reflecting the discount granted to the acquirers of the accounts receivable) recognized in the consolidated statements of operations for the six months ended June 30, 2014 and 2015 were $80 million and $61 million, respectively.

Sources and uses of cashThe following table summarizes cash flows of ArcelorMittal for the six months ended June 30, 2015 and 2014:

Summary of Cash FlowsSix months ended

June 30, 2014(in $ millions)

Six months ended June 30, 2015(in $ millions)

Net cash provided by operating activities 1,077 104 Net cash used in investing activities (1,697) (875)Net cash (used in) provided by financing activities (1,118) 1,597

Net cash provided by operating activities For the six months ended June 30, 2015, net cash provided by operating activities was $0.1 billion as compared with net cash provided by operating activities of $1.1 billion for the six months ended June 30, 2014.

Net cash provided by operating activities for the six months ended June 30, 2015, was negatively impacted by a $0.8 billion increase in working capital (consisting of inventories plus accounts receivable less accounts payable), primarily related to an increase in trade receivables and decrease in trade payables of $888 million and $571 million, respectively, partly offset by a decrease in inventories

of $645 million, as compared to a $50 million increase in working capital a year earlier. The increase in trade receivables and decrease in trade payables is mainly due to increased activity in the first quarter of 2015 after a seasonal break at the end of the fourth quarter of 2014 while the reduction in inventories is mainly related to lower raw material prices for the six months ended June 30, 2015 as the average benchmark iron ore price per tonne of $60 CFR China and the average benchmark price for hard coking coal FOB Australia were 46% and 9% lower than in 2014, respectively, leading to a lower carrying value of raw materials and finished steel products in inventory.

Net cash provided by operating activities for the six months ended June 30, 2014 was negatively affected by payments made relating to the settlement of antitrust litigation in the United States and termination of the Senegal greenfield project.

Net cash used in investing activities Net cash used in investing activities for the six months ended June 30, 2015 was $0.9 billion as compared with net cash used in investing activities of $1.7 billion for the six months ended June 30, 2014.

Capital expenditures were $1.3 billion for the six months ended June 30, 2015 as compared with

$1.6 billion for the six months ended June 30, 2014. The Company currently expects that capital expenditures for the year ended 2015 will amount to approximately $3.0 billion, involving mainly sustaining capital expenditures.


Cash inflow from other investing activities for the six months ended June 30, 2015 amounted to $412 million and included primarily an inflow of $108 million from the exercise of the fourth put option on Hunan Valin shares, $67 million following the repayment of a loan granted to the equity method investment ArcelorMittal RZK Celik Servis Merkezi Sanayi ve Ticaret Annim Sirketi (“RZK”), $92 million from the steel cord business divestment and proceeds from the sale of tangible assets. Other investing activities for the six months ended June 30, 2014 included an inflow of $183 million from the sale of ATIC Services S.A. (“ATIC”) and the steel cord business ($144 million and $39 million, respectively) as well as proceeds from the exercise of the second put option in Hunan Valin. Other investing activities for the six months ended June 30, 2014 included also an outflow of $258 million associated with the acquisition of ThyssenKrupp Steel USA through the joint venture with Nippon Steel & Sumitomo Metal Corporation (“NSSMC”).

The following tables summarize the Company’s principal growth and optimization projects involving significant capital expenditures (including those invested by the Company’s joint ventures) completed in the last half of 2014 and in the current year, as well as those that are ongoing.

Completed Projects in most recent quartersRegion/segment Site Project Capacity / particulars Actual completion

China Hunan Province VAMA auto steel JV

Capacity of 1.5mt pickling line, 0.9mt continuous annealing line and 0.5mt of hot dipped galvanizing auto steel Q1 2015

USA AM/NS Calvert

Continuous coating line upgrade to Aluminize line#4 Increased production of Usibor by 0.1mt / year Q1 2015

Brazil Juiz de Fora (Brazil) Rebar expansion Increase in rebar capacity by 0.4mt / year Q1 2015

NAFTA ArcelorMittal Dofasco (Canada)

Phase 1: Construction of a heavy gauge galvanizing line#6 to optimize galvanizing operations

Optimize cost and increase shipment of galvanized products by 0.3mt / year Q2 2015

Ongoing projects

Segment Site Project Capacity / particularsForecasted Completion

NAFTA ArcelorMittal Dofasco (Canada)

Phase 2: Convert the current galvanizing line #4 to a Galvalume line

Allow the galvaline #4 to produce 160kt for galvalume and 128kt for galvanize 2016

Europe ArcelorMittal Krakow (Poland) HRM extension Increase HRC capacity by 0.9mt/ year 2016HDG increase Increasing HDG capacity by 0.4mt/ year 2016

Brazil Acindar (Argentina) New rolling millIncrease in rolling capacity by 0.4mt / year for bars for civil construction 2016

Mining Liberia Phase 2 expansion projectIncrease production capacity to 15mt/ year (high grade sinter feed)

Initial forecast of 2015 / Currently delayed1

Brazil ArcelorMittal Vega Do Sul (Brazil) Expansion project

Increase hot dipped galvanizing (HDG) capacity by 0.6mt / year and cold rolling (CR) capacity by 0.7mt / year On hold

Brazil Monlevade (Brazil) Wire rod production expansion

Increase in capacity of finished products by 1.1mt / year On hold2

Brazil Juiz de Fora (Brazil) Meltshop expansion Increase in meltshop capacity by 0.2mt / year On hold2

Brazil Monlevade (Brazil) Sinter plant, blast furnace and melt shop

Increase in liquid steel capacity by 1.2mt / year; Sinter feed capacity of 2.3mt / year On hold

Joint venture projects Country Site Project Capacity / particulars Actual completion

Canada Baffinland Early revenue phase Production capacity 3.5mt/ year (iron ore) H2 2015

USA AM/NS Calvert Slab yard expansionIncrease coil production level up to 5.3mt/year coils H2 2016

1 The Liberia phase 2 project to invest $1.7 billion to construct 15 million tonnes of concentrate capacity and associated infrastructure has been delayed. This follows the contractor’s declaration of force majeure on August 8, 2014 due to the Ebola virus outbreak in West Africa. Given the project delays and recent deterioration of iron ore prices, the Company is assessing its options to progress with this project. ArcelorMittal remains fully committed to Liberia. Phase 1 operations are continuing as normal at this time and to date have not been affected by the Ebola situation in Liberia.

2 Though the Monlevade wire rod expansion project and Juiz de Fora meltshop expansion are expected to be completed in the second half of 2015 and 2016 respectively, the Company does not expect to increase shipments until domestic demand improves.



Net cash (used in) provided by financing activities Net cash provided by financing activities was $1.6 billion for the six months ended June 30, 2015, as compared to cash used in financing activities of $1.1 billion for the six months ended June 30, 2014.

During the six months ended June 30, 2015, receipts from the issuance of debenture loans amounted to $2.6 billion including $1.9 billion related to the issuance of Notes under the Company’s Euro Medium Term Notes Programme (€750 million 3.125% Notes due January 14, 2022, €400 million Floating Rate Notes due April 9, 2018 and €500 million 3.00% Notes due April 9, 2021) and $1 billion proceeds from the issuance of $500 million 5.125% Notes due June 1, 2020 and $500 million 6.125 per cent Notes due June 1, 2025. These proceeds were partly offset by a repayment of a $1.0 billion loan with a financial institution.

Dividends paid to ArcelorMittal shareholders and to non-controlling shareholders in subsidiaries during the six months ended June 30, 2015 amounted to $331 million and $53 million, respectively. Dividends paid to non-controlling shareholders in subsidiaries and payments to holders of subordinated perpetual capital securities during the six months ended June 30, 2014 amounted to $40 million and $22 million, respectively.

EquityEquity attributable to the equity holders of the parent decreased to $36.8 billion at June 30, 2015, compared with $42.1 billion at December 31, 2014, primarily due to the decrease of the foreign exchange translation reserve by $4.4 billion as a result of the

depreciation of most currencies against the U.S. dollar, the net loss attributable to the equity holders of the parent of $0.5 billion and dividend payments of $0.3 billion.

Earnings distributions On May 5, 2015 at the Annual General Shareholders’ meeting, the shareholders approved the Company’s dividend of $0.20 per share. The dividend amounted to $331 million and was paid on June 15, 2015.

Treasury shares ArcelorMittal held 10,876,852 shares in treasury at June 30, 2015, down from 11,018,413 shares at December 31, 2014 as a result of allocations to employees under incentive plans. At June 30, 2015, the number of treasury shares represented approximately 0.65% of the total issued number of ArcelorMittal shares.

Research and development, patents and licensesResearch and development expense (included in selling, general and administrative expenses) was $120 million for the six months ended June 30, 2015 as compared to $150 million for the six months ended June 30, 2014. The decrease in expense was largely due to the USD appreciation against the Euro.

Trend information All of the statements in this “Trend information” section are subject to and qualified by the information set forth under the “Cautionary statement regarding forward-looking statements”. See also “Key factors affecting results of operations” above.

OutlookBased on the current economic outlook, ArcelorMittal expects global apparent steel consumption (“ASC”) to be stable in 2015 as compared to 2014. ArcelorMittal expects the pick-up in European manufacturing activity to continue and support ASC growth of approximately 1.5% to 2.5% in 2015. Whilst underlying demand continues to expand in the United States, due to the destock that occurred during the first six months of 2015, ASC is expected to decline by 3% to 4% in 2015; nevertheless, ASC in the United States for the second half of 2015 is expected to be approximately 2% to 3% above the first half of 2015 levels. The outlook for emerging markets remains weak and ArcelorMittal has revised its ASC forecasts accordingly. In Brazil, particularly due to a weaker construction market, ASC is expected to decline by 11% to 13%; for the CIS ArcelorMittal expects to decline by 8% to 10%. In China, ArcelorMittal sees signs of stabilization due to the government’s targeted stimulus, however the real estate market remains weak and ArcelorMittal expects a slight decline of up to 1% in apparent steel consumption in 2015. While risks remain to the global demand picture, given ArcelorMittal’s specific geographical and end market exposures, the Company expects its steel shipments to increase by between 3% to 5% in 2015 as compared to 2014.

Additionally, the Company expects 2015 capital expenditures of approximately $3.0 billion and 2015 net interest expense of approximately $1.4 billion.

Importantly, the Company continues to expect to achieve progress towards the medium term net debt target of $15 billion.



Recent developments

Recent Developments

• Duringthefirsthalfof2015,ArcelorMittal completed several financing transactions. Please refer to the Business Overview – Liquidity and Capital Resources and Business Overview – Financings sections of this report for a summary of the transactions.

• OnJuly10,2015,ArcelorMittalannounced that Simon Wandke has been nominated Executive Vice President of ArcelorMittal and promoted to Chief Executive Officer of ArcelorMittal Mining, with immediate effect. Simon replaces Bill Scotting, who is leaving the Company to pursue other opportunities.

• OnMay22,2015,ArcelorMittaland the Steel Authority of India Limited (“SAIL”), India’s leading steel company signed a Memorandum of Understanding to set up an automotive steel manufacturing facility under a joint venture arrangement in India. This was the first step toward creating the proposed joint venture which will construct a state-of-the-art cold rolling mill and other downstream finishing facilities in India that will offer technologically advanced steel products to India’s rapidly growing automotive sector.

Recent Developments in Legal Proceedings

Tax Claims

BrazilIn May 2014, ArcelorMittal Comercializadora de Energia received a tax assessment from the state of Minas Gerais alleging that the Company did not correctly calculate tax credits on interstate sales of electricity from the February 2012 to December 2013 period. The amount claimed totals $49 million. ArcelorMittal Comercializadora de Energia filed its defense in June 2014. Following an unfavorable administrative decision in November 2014, ArcelorMittal filed an appeal in December 2014. In March 2015, there was a

further unfavourable decision at the second administrative level. The Company is preparing a judicial claim.

In the period from May to July 2015, ArcelorMittal Brasil received 9 tax assessments from the state of Rio Grande do Sul alleging that the Company, through its branches in that state, had not made advance payments of ICMS ( a value added tax) on sales in that state covering the period from May 2010 to April 2015. The amount claimed totals $85 million. ArcelorMittal Brasil has filed its defense in 8 cases and is preparing its defense in the other case.

UkraineIn September 2012, the Ukrainian tax authorities conducted an audit of ArcelorMittal Kryvyi Rih, resulting in a tax claim of approximately $71 million. The claim relates to cancellation of VAT refunds, cancellation of deductible expenses and queries on transfer pricing calculations. On January 2, 2013, ArcelorMittal Kryvyi Rih filed a lawsuit with the District Administrative Court to challenge the findings of this tax audit. On April 9, 2013, the District Administrative Court rejected the claim by the tax authorities retaining only a tax liability of approximately $0.2 million against ArcelorMittal Kryvyi Rih. Both parties filed appeals, and, on November 7, 2013, the Court of Appeal rejected the appeal by the tax authorities and retained only a tax liability of approximately $0.1 million against ArcelorMittal Kryvyi Rih. On November 12, 2013, the tax authorities filed an appeal in cassation. On June 3, 2015, the Supreme Administrative Court of Ukraine decided entirely in favour of ArcelorMittal Kryvyi Rih. The tax authorities may appeal the judgment to the Supreme Court of Ukraine before June 3, 2016.

Competition/Antitrust Claims

RomaniaIn 2010 and 2011, ArcelorMittal Galati entered into high volume electricity purchasing contracts with Hidroelectrica, a partially state-owned electricity producer. Following allegations by Hidroelectrica’s minority shareholders that ArcelorMittal Galati (and other industrial electricity consumers) benefitted from artificially low tariffs, the European Commission opened a formal investigation into alleged state aid in April 2012. The European Commission announced on June 12 2015 that electricity supply contracts signed by Hidroelectrica with certain electricity traders and industrial customers (including the one entered by ArcelorMittal Galati) did not involve state aid within the meaning of the EU rules.

Other Legal Claims

ArgentinaOver the course of 2007 to 2015, the Argentinian Customs Office Authority (Aduana) notified the Company of certain inquiries that it is conducting with respect to prices declared by the Company’s Argentinian subsidiary, Acindar related to iron ore imports. The Customs Office Authority is seeking to determine whether Acindar incorrectly declared prices for iron ore imports from several different Brazilian suppliers and from ArcelorMittal Sourcing on 37 different claims concerning several shipments made between 2002 and 2014. The aggregate amount claimed by the Customs Office Authority in respect of the shipments is approximately $ 192 million. The investigations are subject to the administrative procedures of the Customs Office Authority and are at different procedural stages depending on the filing date of the investigation. By May 2015, in 21of the total 37 cases, the administrative branch of the Customs Office Authority ruled against Acindar (representing total claims of $65 million). These

decisions have been appealed to the Argentinian National Fiscal Court.

ItalyIn January 2010, ArcelorMittal received notice of a claim filed by Finmasi S.p.A. relating to a memorandum of agreement (“MoA”) entered into between ArcelorMittal Distribution Services France (“AMDSF”) and Finmasi in 2008. The MoA provided that AMDSF would acquire certain of Finmasi’s businesses for an amount not to exceed €93 million, subject to the satisfaction of certain conditions precedent, which, in AMDSF’s view, were not fulfilled. Finmasi sued for (i) enforcement of the MoA, (ii) damages of €14 million to €23.7 million or (iii) recovery costs plus quantum damages for Finmasi’s alleged lost opportunity to sell to another buyer. In September 2011, the court rejected Finmasi’s claims other than its second claim. The court appointed an expert to determine the quantum of damages. In May 2013, the expert’s report was issued and valued the quantum of damages in the range of €37.5 million to €59.5 million. ArcelorMittal appealed the decision on the merits. In May 2014, the Court of Appeals issued a decision rejecting ArcelorMittal’s appeal. In June 2014, ArcelorMittal filed an appeal of the Court of Appeal’s judgment with the Italian Court of Cassation. On December 18, 2014, the Court of Milan issued a decision on the quantum of the damages and valued the quantum of damages in the sum of €23.7 million plus interest. In June 2015, both parties served appeals of the decision on quantum, with ArcelorMittal also seeking the suspension of the enforceability of the decision. On July 1, 2015, Finmasi formally notified to AMDSF the declaration of enforcement of the decision of December 18, 2014. On July 28, 2015, AMDSF filed an appeal against such declaration with the Court of Appeal of Reims in France.


Corporate governance

Please refer to the “Corporate Governance” section of our 2014 Annual Report for a complete overview of our corporate governance practices. The purpose of the present section is solely to describe the events and changes affecting the corporate governance of the Company between December 31, 2014 and June 30, 2015.

For a description of the changes to the board of directors of the Company (the “Board of Directors”) after the annual general meeting of shareholders held on May 5, 2015, please refer to the Board of Directors section below.

Share OwnershipIn May 2015, the Company put in place a Share Ownership Policy for its Chief Executive Officer (“CEO”). Share ownership demonstrates to our shareholders, the investing public and the Company’s employees, the commitment of the CEO to the Company, and directly aligns his interests with the Company’s shareholders.

Accordingly, the CEO should, within 3 years of the end of the current calendar year, own common shares of the Company at least equal to 3 times his annual salary.

Annual general meeting of shareholders held on May 5, 2015

Share buy-back The share buy-back authorization approved by the annual general meeting of shareholders in May 2010 was cancelled by a resolution of the general meeting of shareholders on May 5, 2015. The share buy-back authorization approved by the annual general meeting of shareholder on May 5, 2015 will remain valid for a five-year period, i.e., until May 5, 2020, or until the date of its renewal by a resolution of the general meeting of shareholders if such renewal date is prior to

the expiration of the five-year period.

The maximum number of shares that may be held or acquired is the maximum allowed by the Luxembourg law of August 10, 1915 on commercial companies, as amended (the “Law”), in such manner that the accounting par value of the Company’s shares held by the Company do not in any event exceed 10% of the Company’s issued share capital.

The maximum number of own shares that the Company may hold at any time directly or indirectly may not have the effect of reducing its net assets (“actif net”) below the amount mentioned in paragraphs 1 and 2 of Article 72-1 of the Law.

The purchase price per share to be paid shall not represent more than 110% of the trading price of the shares on the markets where the Company is listed, and no less than one cent.

For off-market transactions, the maximum purchase price shall be 110% of the reference price on the Euronext markets where the Company is listed. The reference price will be deemed to be the average of the final listing prices per share on these markets during thirty (30) consecutive days on which these markets are open for trading preceding the three trading days prior to the date of purchase. In the event of a share capital increase by incorporation of reserves or issue premiums and the free allotment of shares, as well as in the event of the division or regrouping of the shares, the purchase price indicated above shall be adjusted by a multiplying coefficient equal to the ratio between the number of shares comprising the issued share capital prior to the transaction and such number following the transaction.

All powers were granted to the Board of Directors, with the power to delegate, to effectuate

the implementation of this authorization.

Equity-based compensation The May 5, 2015 annual general meeting of shareholders authorized the Board of Directors, in particular to allocate up to 5 million of the Company’s fully paid-up common shares (the “2015 Cap”), and to adopt any rules or measures to implement the Group Management Board Performance Share Unit Plan (the “GMB PSU Plan”) and other retention based grants below the level of the GMB that the Board of Directors may at its discretion consider appropriate. Such authorization is valid until the annual general meeting of shareholders to be held in 2016.

The GMB PSU Plan is designed to enhance the long-term performance of the Company and align the members of our Group Management Board (“GMB”) with the Company’s objectives. The GMB PSU Plan complements the Company’s existing program of annual performance-related bonuses, which is the Company’s reward system for short-term performance and achievements. The main objective of the GMB PSU Plan is to be an effective performance-enhancing scheme for GMB members based on the achievement of the Company’s strategy aimed at creating measurable long-term shareholder value.

The members of the GMB, including the Chief Executive Officer, will be eligible for Performance Share Unit (“PSU”) grants. The GMB PSU Plan provides for cliff vesting on the third year anniversary of the grant date, under the condition that the relevant GMB member continues to be actively employed by the ArcelorMittal group on that date. If the GMB member is retired on that date or in case of an early retirement by mutual consent, the relevant

GMB member will not automatically forfeit PSUs and pro rata vesting will be considered at the end of the vesting period at the sole discretion of the Appointments, Remuneration & Corporate Governance Committee of the Board of Directors. Awards under the GMB PSU Plan are subject to the fulfillment of cumulative performance criteria over a three-year period from the date of the PSU grant. The value of the grant at grant date will equal one year of base salary for the Chief Executive Officer and 80% of base salary for the other GMB members. Each PSU may give right to up to one and half (1.5) shares of the Company.

An explanatory presentation, including a description of the performance targets applicable to the GMB PSU Plan is available on www.arcelormittal.com under Investors – Equity investors – Shareholders’ meetings – Annual General Meeting May 5, 2015.

The allocation of PSUs to eligible GMB members is reviewed by the Appointments, Remuneration & Corporate Governance Committee of the Board of Directors, which is comprised of four independent directors, and which makes a proposal and recommendation to the full Board of Directors pursuant to such review. The vesting criteria of the PSUs are also monitored by the Appointments, Remuneration & Corporate Governance Committee. The Company will report in its annual reports on the progress of meeting the vesting criteria on each grant anniversary date as well as on the applicable peer group.

Board of DirectorsThe May 5, 2015 annual general meeting of shareholders re-elected Mr. Narayanan Vaghul, Mr. Wilbur Ross and Mr. Tye Burt as directors and elected Mrs. Karyn Ovelmen as director, each of them for a three-year term that


will automatically expire at the annual general meeting of shareholders to be held in 2018.

The Board of Directors is composed of 12 directors, of whom eleven are non-executive directors and eight are independent directors. The 12 directors are Mr. Lakshmi N. Mittal, Mrs. Vanisha Mittal Bhatia, Mr. Antoine Spillmann, Mr. Wilbur L. Ross, Mr. Lewis B. Kaden, Mr. Narayanan Vaghul, Mr. Jeannot Krecké, Mr. Tye Burt, Mrs.

Suzanne Nimocks, Mr. Bruno Lafont, Mr. Michel Wurth and Mrs. Karyn Ovelmen. The four non independent directors are Mr. Lakshmi N. Mittal, Mrs. Vanisha Mittal Bhatia, Mr. Jeannot Krecké and Mr. Michel Wurth. The Board of Directors comprises one executive director: Mr. Lakshmi N. Mittal, the Chairman and Chief Executive Officer of the Company. None of the members of the Board of Directors, including the executive director, have entered into service

contracts with the Company or any of its subsidiaries that provide for benefits upon the termination of their mandate. For additional information on the functioning of the Board of Directors and the composition of its committees, please refer to the 2014 annual report of the Company available on www.arcelormittal.com under “Investors – Financial reports – Annual reports.”

Corporate governancecontinued


Cautionary statement regarding forward-looking statements

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,”

“anticipate,” “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 financial and stock market regulator (Commission de Surveillance du Secteur Financier) and the SEC.

ArcelorMittal undertakes no obligation to publicly update its forward looking statements, whether as a result of new information, future events, or otherwise.


We confirm, to the best of our knowledge, that:

1. the condensed consolidated financial statements of ArcelorMittal presented in this Half Year Report 2015, prepared in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board and as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position, profit or loss of the Company and significant off balance sheet arrangements.

2. the interim management report includes a fair review of the material events that occurred in the first six months of the financial year 2015 and their impact on the interim condensed consolidated financial statements, of the main related party transactions, and a description of the principal risks and uncertainties for the remaining six months of the year.

By order of the Board of Directors

Chief Executive Officer Mr. Lakshmi N. Mittal August 3, 2015

Chief Financial Officer Mr. Aditya Mittal August 3, 2015

Chief executive officer and chief financial officer’s responsibility statement

Financial statements 27

(in millions of U.S. dollars, except share and per share data)(unaudited)

Condensed consolidated statements of financial position

Assets: December 31, 2014 June 30, 2015

Current assets:Cash and cash equivalents 3,893 4,611 Restricted cash 123 101 Trade accounts receivable and other (including 469 and 665 from related parties at December 31, 2014 and June 30, 2015, respectively) 3,696 4,283 Inventories (note 4) 17,304 15,466 Prepaid expenses and other current assets 2,627 2,402 Assets held for sale (note 5) 414 24 Total current assets 28,057 26,887 Non-current assets:Goodwill and intangible assets 8,104 7,279 Biological assets 128 103 Property, plant and equipment (note 2) 46,465 42,545 Investments in associates and joint ventures (note 3) 5,833 5,532 Other investments 1,202 1,103 Deferred tax assets 7,962 7,214 Other assets 1,428 1,269 Total non-current assets 71,122 65,045 Total assets 99,179 91,932

Liabilities and equity: December 31, 2014 June 30, 2015

Current liabilities:Short-term debt and current portion of long-term debt (note 8) 2,522 3,239 Trade accounts payable and other (including 290 and 242 to related parties at December 31, 2014 and June 30, 2015, respectively) 11,450 10,291 Short-term provisions (note 10) 1,024 712 Accrued expenses and other liabilities 5,740 5,150 Income tax liabilities 230 161 Liabilities held for sale (note 5) 157 - Total current liabilities 21,123 19,553 Non-current liabilities:Long-term debt, net of current portion (note 8) 17,275 18,031 Deferred tax liabilities 3,004 2,707 Deferred employee benefits 10,074 9,652 Long-term provisions (note 10) 1,587 1,486 Other long-term obligations 956 670 Total non-current liabilities 32,896 32,546 Total liabilities 54,019 52,099 Commitments and contingencies (note 12 and note 13)Equity (note 6):Equity attributable to the equity holders of the parent 42,086 36,813 Non-controlling interests 3,074 3,020 Total equity 45,160 39,833 Total liabilities and equity 99,179 91,932

The accompanying notes are an integral part of these condensed consolidated financial statements.

28 Financial statements


Condensed consolidated statements of operations

Six months ended June 30, 2014


Sales (including 3,111 and 3,126 of sales to related parties for 2014 and 2015, respectively) 40,492 34,008 Cost of sales (including depreciation and impairment of 2,011 and 1,627 and purchases from related parties of 655 and 860 for 2014 and 2015, respectively) 37,517 31,552 Gross margin 2,975 2,456 Selling, general and administrative expenses 1,469 1,306 Operating income 1,506 1,150 Income from investments in associates, joint ventures and other investments 154 123 Financing costs - net (1,516) (1,477)Income (loss) before taxes 144 (204)Income tax expense (note 7) 217 334 Net income (loss) (including non-controlling interests) (73) (538)Net income (loss) attributable to:Equity holders of the parent (153) (549)Non-controlling interests 80 11 Net income (loss) (including non-controlling interests) (73) (538)



Earnings (loss) per common share (in U.S. dollars):Basic and diluted (0.09) (0.31)Weighted average common shares outstanding (in millions):Basic and diluted (note 6) 1,791 1,794




Condensed consolidated statements of other comprehensive income

Six months ended

June 30, 2014Six months ended

June 30, 2015

Net income (loss) (including non-controlling interests) (73) (538)Items that can be recycled to the condensed consolidated statements of operationsAvailable-for-sale investments:Gain (loss) arising during the period 253 (77) Reclassification adjustments for (gain) loss included in the condensed consolidated statements of operations 56 -

309 (77) Derivative financial instruments: Gain (loss) arising during the period 87 10Reclassification adjustments for (gain) loss included in the condensed consolidated statements of operations 5 (82)

92 (72)Exchange differences arising on translation of foreign operations:Gain (loss) arising during the period 145 (4,010)Reclassification adjustments for (gain) loss included in the condensed consolidated statements of operations (18) (54)

127 (4,064)Share of other comprehensive income (loss) related to associates and joint ventures:Gain (loss) arising during the period (85) (355)Reclassification adjustments for (gain) loss included in the consolidated statements of operations (54) (2)

(139) (357)Income tax benefit (expense) related to components of other comprehensive income that can be recycled to the condensed consolidated statements of operations (7) 23Total other comprehensive income (loss) 382 (4,547)

Total other comprehensive income (loss) attributable to:Equity holders of the parent 388 (4,400)Non-controlling interests (6) (147)

382 (4,547)Total comprehensive income (loss) 309 (5,085)Total comprehensive income (loss) attributable to: Equity holders of the parent 235 (4,949)Non-controlling interests 74 (136)Total comprehensive income (loss) 309 (5,085)The accompanying notes are an integral part of these condensed consolidated financial statements.



Condensed consolidated statements of changes in equity

Reserves

Items that can be recycled to the condensed consolidated statements of

operations

Items that cannot be

recycled to the

condensed consolidated

statements of operations

Shares1,2Share

capitalTreasury

shares

Subordinated perpetual

capital securities

Mandatorily convertible

notes

Additional paid-in capital

Retained earnings

Foreigncurrency

translationadjustments

Unrealized gains (losses) on derivative

financial instruments

Unrealized gains (losses) on available-

for-sale securities

Recognized actuarial

losses

Equity attributable

to the equity holders of the parent

Non-controlling

interests Total equity

Balance at December 31, 2013 1,654 10,011 (414) 650 1,838 20,248 24,037 (2,910) (324) (105) (3,238) 49,793 3,380 53,173Net income (loss) (including non-controlling interests) - - - - - - (153) - - - - (153) 80 (73)Other comprehensive income (loss) - - - - - - - 7 66 315 - 388 (6) 382Total comprehensive income (loss) - - - - - - (153) 7 66 315 - 235 74 309Redemption of subordinated perpetual capital securities - - - (650) - - (7) - - - - (657) - (657)Mandatory convertible bonds extension - - - - - - - - - - - - (47) (47)Option premiums on treasury shares - - - - - - (309) - 309 - - - - - Recognition of share based payments - - - - - 12 - - - - - 12 - 12Dividend - - - - - - (333) - - - - (333) (49) (382)Coupon on subordinated perpetual capital securities - - - - - (22) - - - - (22) - (22)Other changes in non-controlling interests - - - - - - (40) - - - - (40) (52) (92)Other movements - - - - - - (65) - - - - (65) (5) (70)Balance at June 30, 2014 1,654 10,011 (414) - 1,838 20,260 23,108 (2,903) 51 210 (3,238) 48,923 3,301 52,224

Balance at December 31, 2014 1,654 10,011 (399) - 1,838 20,258 22,182 (7,627) 89 405 (4,671) 42,086 3,074 45,160 Net income (loss) (including non-controlling interests) - - - - - - (549) - - - - (549) 11 (538)Other comprehensive income (loss) - - - - - - - (4,276) (58) (66) - (4,400) (147) (4,547)Total comprehensive income (loss) - - - - - - (549) (4,276) (58) (66) - (4,949) (136) (5,085)Recognition of share based payments - - 3 - - 11 - - - - - 14 - 14 Dividend - - - - - - (331) - - - - (331) (55) (386)Other changes in non-controlling interests (note 6) - - - - - - - - - - - - 148 148 Other movements - - - - - - (7) - - - - (7) (11) (18)Balance at June 30, 2015 1,654 10,011 (396) - 1,838 20,269 21,295 (11,903) 31 339 (4,671) 36,813 3,020 39,833 1 Excludes treasury shares2 In million of shares




Condensed consolidated statements of cash flows



Operating activities:Net loss (including non-controlling interests) (73) (538)Adjustments to reconcile net loss to net cash provided by operations and payments:Depreciation and impairment 2,011 1,627 Interest expense 850 693 Interest income (40) (45)Income tax expense 217 334 Income from associates, joint ventures and other investments (154) (123)Provisions for labour agreements and separation plans 289 283 Foreign exchange effects, provisions and other non-cash operating expenses (net) 92 223 Changes in operating assets and liabilities, net of effects from acquisitions:Trade accounts receivable (374) (888)Inventories 380 645 Trade accounts payable (56) (571)Interest paid (933) (839)Interest received 69 30 Cash contributions to plan assets and benefits paid for pensions and OPEB (352) (284)VAT and other amounts from public authorities 291 304 Dividends received from associates, joint ventures and other investments 118 155 Taxes paid (224) (246)Other working capital, provision movements and other liabilities (1,034) (656)Net cash provided by operating activities 1,077 104 Investing activities:Purchase of property, plant and equipment and intangibles (1,649) (1,287)Disposal of net assets of subsidiaries and non-controlling interests (net of cash disposed of (84) and (10) for the six months ended June 2014 and June 2015, respectively) 183 (5)Acquisition of associates and joint ventures (258) -Disposal of other financial assets 25 108 Other investing activities (net) 2 309 Net cash used in investing activities (1,697) (875)Financing activities:Proceeds from short-term and long-term debt 2,945 3,279 Payments of short-term and long-term debt (3,318) (1,304)Payment of subordinated perpetual capital securities (657) -Dividends paid (62) (384)Other financing activities (net) (26) 6 Net cash (used in) provided by financing activities (1,118) 1,597 Net (decrease) increase in cash and cash equivalents (1,738) 826 Effect of exchange rate changes on cash (127) (108)Cash and cash equivalents:At the beginning of the period 6,072 3,893 Reclassification of the period-end cash and cash equivalents from assets held for sale 7 -At the end of the period 4,214 4,611 The accompanying notes are an integral part of these condensed consolidated financial statements.



Note 1: Basis of presentation and accounting policiesPreparation of the condensed consolidated financial statementsThe condensed consolidated financial statements of ArcelorMittal and Subsidiaries (“ArcelorMittal” or the “Company”) as of June 30, 2015 and for the six months then ended (the “Interim Financial Statements”) have been prepared in accordance with International Accounting Standard (“IAS”) No. 34, “Interim Financial Reporting”. They should be read in conjunction with the annual consolidated financial statements and the notes thereto in the Company’s Annual Report for the year ended December 31, 2014, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and adopted by the European Union. The Interim Financial Statements are unaudited. They were authorized for issuance on August 3, 2015 by the Company’s Board of Directors.

Accounting policiesThe Interim Financial Statements have been prepared on a historical cost basis, except for available for sale financial assets, derivative financial instruments and biological assets, which are measured at fair value less cost to sell, and inventories, which are measured at the lower of net realizable value or cost. Unless specifically described herein, the accounting policies used to prepare the Interim Financial Statements are the policies described in note 2 of the consolidated financial statements for the year ended December 31, 2014.

In 2015, ArcelorMittal Kryvyi Rih and ArcelorMittal Temirtau changed their functional currencies from the U.S. Dollar to their local currencies due to

changes in the regulatory and economic environment and transactional currencies of the operations in the Ukraine and changes in the transactional currencies of the operations in Kazakhstan.

Adoption of new IFRS standards and interpretations applicable from January 1, 2015On January 1, 2015, the Company adopted the following amendments and interpretation which did not have any material impact on the financial statements of the Company:

• AmendmentstoIAS19“Employee Benefits”, published on November 21, 2013, clarify the requirements that relate to how contributions from employees or third parties that are linked to service should be attributed to periods of service.

• AnnualImprovements2010-2012published by the IASB on December 12, 2013 as part of its annual improvements process made amendments to the following standards:

1. IFRS 2 “Share-based Payment”, amends the definition of vesting condition and market condition and adds definitions for performance condition and service condition

2. IFRS 3 “Business Combinations”, provides additional guidance for accounting for contingent consideration in a business combination

3. IFRS 8 “Operating Segments”, provides clarification of the requirements for the aggregation of operating segments and the reconciliation of the total of the reportable segments’ assets to the entity’s assets

4. IFRS 13 “Fair Value Measurement”, provides additional guidance for the measurement of short-term receivables and payables

5. IAS 16 “Property, Plant and Equipment”, provides additional

guidance for the proportionate restatement of accumulated depreciation when the revaluation method is applied

6. IAS 24 “Related Party Disclosure”, provides additional guidance for the definition of key management personnel

7. IAS 38 “Intangible Assets”, provides additional guidance for the proportionate restatement of accumulated depreciation when the revaluation method is applied

• AnnualImprovements2011-2013published by the IASB on December 12, 2013 as part of its annual improvements process made amendments to the following standards:

1. IFRS 1 “First-time Adoption of International Financial Reporting Standards”, provides additional guidance for the effectiveness of IFRSs

2. IFRS 3 “Business Combinations”, clarifies the scope of the exception for joint arrangements

3. IFRS 13 “Fair Value Measurement”, clarifies the scope of the portfolio exception

4. IAS 40 “Investment Property”, provides clarification of the interrelationship of IFRS 3 and IAS 40 when classifying property as investment property or owner-occupied property

The preparation of consolidated financial statements in conformity with IFRS recognition and measurement principles requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Management reviews its estimates on an ongoing basis using currently available information. Changes in facts and circumstances or obtaining new information or more experience may result in revised estimates, and actual results could differ from those estimates.

Note 2: Property, plant and equipmentFollowing the announcement of the closure of the Georgetown facility in the US (NAFTA) in May 2015, the Company recognized an impairment charge of property, plant and equipment amounting to 19 during the period ended June 30, 2015.

Notes to the condensed consolidated financial statements for the six months ended June 30, 2015


Note 4: Inventories Inventory, net of the allowance for slow-moving inventory, excess of cost over net realizable value and obsolescence as of December 31, 2014 and June 30, 2015, is comprised of the following:

December 31, 2014 June 30, 2015

Finished products 6,264 5,362Production in process 3,701 3,453Raw materials 5,691 4,975Manufacturing supplies, spare parts and other 1,648 1,676Total 17,304 15,466

The amount of write-downs of inventories to net realizable value recognized as an expense was 363 and 305 during the six months ended June 30, 2014 and 2015, respectively.


Note 3: Investments in associates and joint venturesOn April 30, 2015, ING Bank and Macquarie Bank exercised their put option for their respective 9.9% and 7.5% stakes in China Oriental Group Company Ltd (“China Oriental”) acquired on April 30, 2008 and April 30, 2014, respectively, in connection with a sale and purchase agreement they entered into with ArcelorMittal to restore the minimum free float of 25% of China Oriental on the Hong Kong Stock Exchange (“HKSE”). Accrued expenses and other liabilities and prepaid expenses and other current assets decreased by 96 and 112, respectively, as a result of these changes. The Company had not derecognized the 17.4% stake in China Oriental as it retained its exposure to significant potential risks and rewards of the investment through the put options.

Notes to the condensed consolidated financial statements for the six months ended June 30, 2015continued

Note 5: Assets and liabilities held for saleOn January 10, 2015, ArcelorMittal completed the sale of a 21% controlling stake in ArcelorMittal Tebessa, which holds two iron ore mines in Ouenza and Boukadra, Tebessa, to Sider and the Ferphos Group, two Algerian state-owned entities. The Company accounted for its remaining 49% stake under the equity method.

On January 23, 2015, ArcelorMittal completed the disposal of the building in Avenue de la Liberté in Luxembourg city, formerly the

headquarters of the Company, to the Banque et Caisse d’Epargne de l’Etat (“BCEE”).

On February 26, 2015, ArcelorMittal established the investment ArcelorMittal RZK Celik Servis Merkezi Sanayi ve Ticaret Anonim Sirketi (“AM RZK”) with a local partner in Turkey through the contribution of assets and liabilities of the Company’s wholly owned subsidiary Rozak Demir Profil Ticaret ve Sanayi Anonim Sirketi (“Rozak”). ArcelorMittal holds a 50% stake in AM RZK and the investment is accounted for under the equity method.

On March 30, 2015, the Company established the joint venture ArcelorMittal CLN Distribuzione Italia S.r.l. (“AMCDI”) with Coils Lamiere Nastri S.P.A. (“CLN”) through the contribution of assets and liabilities of its wholly owned subsidiary ArcelorMittal Distribution Solutions Italia S.R.L (“AMDSI”). ArcelorMittal holds a 49% stake in AMCDI, which is accounted for under the equity method.

The result on disposal for the above mentioned disposals was immaterial. The aggregate net assets disposed of amounted to 97.

In May 2015, ArcelorMittal committed to a plan to sell its investment in the Northern Cape Iron Ore Mining Project (Coza mine) in South Africa, an associate in which the Company holds a 25% interest. Accordingly, the carrying amount of 24 of this investment was classified as held for sale at June 30, 2015.




Note 6: EquityShare capitalThe aggregate number of shares issued and fully paid up is 1,665,392,222 as of June 30, 2015. The ordinary shares do not have a nominal value.

Treasury sharesArcelorMittal held, indirectly and directly, approximately 11.0 million and 10.9 million treasury shares as of December 31, 2014 and June 30, 2015, respectively.

Earnings per common shareThe weighted average common shares outstanding (in millions) for the purposes of basic and diluted earnings per share of 1,791 were retrospectively adjusted for

anti-dilutive instruments for the six months ended June 30, 2014.

DividendsThe dividend for the full year of 2015 amounted to 331 and was paid on June 15, 2015. During the six months ended June 30, 2014, the Company declared a dividend for an amount of 333. Payments were made on July 15, 2014.

Mandatorily convertible notesOn January 16, 2013, ArcelorMittal issued mandatorily convertible subordinated notes (“MCNs”) with net proceeds of 2,222. The notes have a maturity of 3 years, were issued at 100% of the principal amount and are mandatorily converted into ordinary shares of ArcelorMittal at maturity unless

converted earlier at the option of the holders or ArcelorMittal or upon specified events in accordance with the terms of the MCNs. The MCNs pay a coupon of 6.00% per annum, payable quarterly in arrears. The minimum conversion price of the MCNs was set at $16.75, corresponding to the placement price of shares in the concurrent ordinary shares offering as described above, and the maximum conversion price was set at approximately 125% of the minimum conversion price (corresponding to $20.94). The minimum and maximum conversion prices are subject to adjustment upon the occurrence of certain events, and were, as of June 30, 2015, $15.98 and $19.98, respectively. The Company determined the notes met the

definition of a compound financial instrument and as such determined the fair value of the financial liability component of the bond was 384 on the date of issuance and recognized it as long-term obligation. The value of the equity component of 1,838 was determined based upon the difference of the cash proceeds received from the issuance of the bond and the fair value of the financial liability component on the date of issuance and is included in equity.

Non-controlling interestsAt June 30, 2015, non-controlling interests included an increase of 148 relating to a capital increase in Arceo (Europe segment) subscribed by the Sogepa, the investment fund of the Walloon Region in Belgium.

Note 7: Income taxThe tax expense for the period is based on an estimated annual effective rate, which requires management to make its best estimate of annual pre-tax income for the year. During the year, management regularly updates its estimates based on changes in various factors such as geographical mix of operating profit, prices, shipments, product mix, plant operating performance and cost estimates, including labor, raw materials, energy and pension and other postretirement benefits.

The income tax expense was 217 and 334 for the six months ended June 30, 2014 and 2015, respectively.

Note 8: Short-term and long-term debt Short-term debt, including the current portion of long-term debt, consisted of the following:

December 31, 2014 June 30, 2015

Short-term bank loans and other credit facilities including commercial paper* 1,249 385 Current portion of long-term debt 1,200 2,783 Lease obligations 73 71 Total 2,522 3,239

* The weighted average interest rate on short term borrowings outstanding were 2.7% and 1.9% as of December 31, 2014 and June 30, 2015, respectively.

Short-term bank loans and other credit facilities include short-term loans, overdrafts and commercial paper.

During the six months ended June 30, 2014, ArcelorMittal entered into certain short-term committed bilateral credit facilities. The facilities were extended in 2015. As of June 30 2015, the facilities, totaling approximately $0.8 billion, remain fully available.

On June 10, 2014, ArcelorMittal entered into an agreement for financing with a financial institution for 1 billion. The financial institution had the right to request early repayment once per year beginning in February 2015 until the final maturity on April 20, 2017. On February 13, 2015, the Company elected to make an early repayment of such financing.




The Company’s long-term debt consisted of the following: Year of maturity Type of interest Interest rate1 December 31, 2014 June 30, 2015

Corporate 6 billion Revolving Credit Facility - 2.5 billion tranche 2018 Floating - - 6 billion Revolving Credit Facility - 3.5 billion tranche 2020 Floating - - 1.0 billion Unsecured Notes 2015 Fixed 4.50% 998 1,000 500 Unsecured Notes 2016 Fixed 4.50% 499 499 €1.0 billion Unsecured Bonds 2016 Fixed 10.63% 1,210 1,117 1.4 billion Unsecured Notes 2017 Fixed 5.25% 1,396 1,397 €1.0 billion Unsecured Bonds 2017 Fixed 5.88% 1,208 1,113 €500 million Unsecured Notes 2018 Fixed 5.75% 604 557 €400 million Unsecured Notes 2018 Floating 2.05% - 446 1.5 billion Unsecured Notes 2018 Fixed 6.13% 1,500 1,500 €750 million Unsecured Bonds 2019 Fixed 3.00% 903 833 1.5 billion Unsecured Notes 2019 Fixed 10.60% 1,475 1,477 500 Unsecured Notes 2020 Fixed 5.13% - 497 €600 million Unsecured Notes 2020 Fixed 2.88% 719 662 1.0 billion Unsecured Bonds 2020 Fixed 6.00% 988 989 1.5 billion Unsecured Notes 2021 Fixed 6.25% 1,489 1,489 €500 million Unsecured Notes 2021 Fixed 3.00% - 555 €750 million Unsecured Bonds 2022 Fixed 3.13% - 833 1.1 billion Unsecured Notes 2022 Fixed 7.00% 1,090 1,090 500 Unsecured Notes 2025 Fixed 6.13% - 496 1.5 billion Unsecured Bonds 2039 Fixed 7.75% 1,465 1,465 1.0 billion Unsecured Notes 2041 Fixed 7.50% 983 984 Other loans 2021 Fixed 3.46% 70 64 EBRD loans 2015 Floating - 8 - EIB loan 2016 Floating 1.49% 304 280 300 Term Loan Facility 2016 Floating 2.29% 300 300 ICO loan 2017 Floating 2.52% 42 31 Other loans 2017-2035 Floating 0.00%-2.56% 144 220 Total Corporate 17,395 19,894 AmericasOther loans 2016-2026 Fixed/ Floating 0.58%-15.08% 420 310 Total Americas 420 310 Europe, Asia & Africa Other loans 2016-2025 Fixed/ Floating 0.00%-8.16% 28 30 Total Europe, Asia & Africa 28 30 Total 17,843 20,234 Less current portion of long-term debt (1,200) (2,783)Total long-term debt (excluding lease obligations) 16,643 17,451 Lease obligations 2 632 580 Total long-term debt, net of current portion 17,275 18,031

1 Rates applicable to balances outstanding at June 30, 2015.2 Net of current portion of 73 and 71 as of December 31, 2014 and June 30, 2015, respectively.




Corporate6 billion Revolving Credit Facility On 30 April 2015, ArcelorMittal signed a 6 billion revolving credit facility which incorporates a first tranche of 2.5 billion maturing on April 30, 2018, and a second tranche of 3.5 billion maturing on April 30, 2020. The facility may be used for general corporate purposes and replaces the 2.4 billion revolving credit facility agreement dated May 6, 2010, and the 3.6 billion revolving credit facility agreement dated March 18, 2011. As of June 30, 2015, the 6 billion revolving credit facility remains fully available.

BondsOn July 3, 2015 ArcelorMittal completed the offering of CHF 225 million 2.5% Notes due July 3, 2020, issued under the Company’s Euro Medium Term Notes Programme. The proceeds of the issuance will be used to repay or prepay existing indebtedness.

On July 2, 2015, the Company redeemed its 1 billion 4.5% Unsecured Notes due August 5, 2015, prior to their scheduled maturity for a total amount of 1,022, including premium and accrued interest.

On June 1, 2015, ArcelorMittal completed the offering of 500 5.125% Notes due June 1, 2020, and 500 6.125% Notes due June 1, 2025, issued under the Company’s automatic shelf registration statement filed with the U.S. Securities and Exchange Commission (including a prospectus). The proceeds of the issuance were used to repay existing indebtedness, in particular the early redemption of bonds maturing in August 2015.

On April 9, 2015, ArcelorMittal completed the offering of €400 million Floating Rate Notes due April 9, 2018, and €500 million 3.00% Notes due April 9, 2021, issued under the Company’s Euro Medium Term Notes Programme. The proceeds of the issuance were used for general corporate purposes.

On January 14, 2015, ArcelorMittal completed the offering of €750 million 3.125 % Notes due January 14, 2022, issued under the Company’s Euro Medium Term Notes Programme. The proceeds of the issuance were used for general corporate purposes.

Other Certain debt agreements of the Company or its subsidiaries contain certain restrictive covenants. Among other things, these covenants limit encumbrances on the assets of ArcelorMittal and its subsidiaries, the ability of ArcelorMittal’s subsidiaries to incur debt and the ability of ArcelorMittal and its subsidiaries to dispose of assets in certain circumstances. Certain of these agreements also require compliance with a financial covenant.

The Company’s principal credit facilities (6 billion revolving credit facility, and certain borrowing agreements) include the following financial covenant: the Company must ensure that the ratio of “Consolidated Total Net Borrowings” (consolidated total borrowings less consolidated cash and cash equivalents) to “Consolidated EBITDA” (the consolidated net pre-taxation profits of the Company for a Measurement Period, subject to certain adjustments as set out in the facilities) does not, at the end of each “Measurement Period” (each period of 12 months ending on the last day of a financial half-year or a financial year of the

Company), exceed a certain ratio, currently 4.25 to 1 and 4.0 to 1 depending on the borrowing agreement.

The Company was in compliance with the financial covenants contained in the agreements related to all of its borrowings as of June 30, 2015.




Note 9: Financial instruments The Company enters into derivative financial instruments to manage its exposure to fluctuations in interest rates, exchange rates and the price of raw materials, energy and emission rights allowances arising from operating, financing and investment activities.

Fair values versus carrying amounts The estimated fair values of certain financial instruments have been determined using available market information or other valuation methodologies that require judgment in interpreting market data and developing estimates. The following tables summarize assets and liabilities based on their categories at June 30, 2015.

Carrying amount in

statements of financial

position

Non-financial assets and

liabilitiesLoan and

receivables

Liabilities at amortized

cost

Fair value recognized in

profit or lossAvailable-for-

sale assets Derivatives

Assets:

Current assets:Cash and cash equivalents 4,611 - 4,611 - - - - Restricted cash 101 - 101 - - - - Trade accounts receivable and other 4,283 - 4,283 - - - - Inventories 15,466 15,466 - - - - -

Prepaid expenses and other current assets 2,402 1,381 794 - - - 227Assets held for sale 24 24 - - - - - Total current assets 26,887 16,871 9,789 - - - 227

Non-current assets:Goodwill and intangible assets 7,279 7,279 - - - - - Biological assets 103 - - - 103 - - Property, plant and equipment 42,545 42,545 - - - - - Investments in associates and joint ventures 5,532 5,532 - - - - - Other investments 1,103 - - - - 1,103 - Deferred tax assets 7,214 7,214 - - - - - Other assets 1,269 398 819 - - - 52Total non-current assets 65,045 62,968 819 - 103 1,103 52Total assets 91,932 79,839 10,608 - 103 1,103 279

Liabilities and equity:

Current liabilities:Short-term debt and current portion of long-term debt 3,239 - - 3,239 - - - Trade accounts payable and other 10,291 - - 10,291 - - - Short-term provisions 712 660 - 52 - - - Accrued expenses and other liabilities 5,150 1,308 - 3,715 - - 127Income tax liabilities 161 161 - - - - - Total current liabilities 19,553 2,129 - 17,297 - - 127

Non-current liabilities:

Long-term debt, net of current portion 18,031 - - 18,031 - - - Deferred tax liabilities 2,707 2,707 - - - - - Deferred employee benefits 9,652 9,652 - - - - - Long-term provisions 1,486 1,466 - 20 - - - Other long-term obligations 670 224 - 332 - - 114Total non-current liabilities 32,546 14,049 - 18,383 - - 114

Equity:Equity attributable to the equity holders of the parent 36,813 36,813 - - - - - Non-controlling interests 3,020 3,020 - - - - - Total equity 39,833 39,833 - - - - - Total liabilities and equity 91,932 56,011 - 35,680 - - 241




The following table summarizes the reconciliation of the fair value of the call option on the 1,000 mandatory convertible bonds as of December 31, 2014 and June 30, 2015:

Call option on 1,000 mandatory

convertible bonds

Balance as of December 31, 2013 -Change in fair value 51 Balance of MCB call option as of January 17, 2014 (extension) 32 Balance as of June 30, 2014 83 Balance as of December 31, 2014 112 Change in fair value (13)Balance as of June 30, 2015 99

The following tables summarize the bases used to measure certain assets and liabilities at their fair value.

As of December 31, 2014 As of June 30, 2015

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 TotalAssets at fair value:Available-for-sale financial assets 1,022 - - 1,022 717 231 - 9481 Derivative financial current assets - 192 - 192 - 128 99 227 Derivative financial non-current assets - 4 112 116 - 52 - 52 Total assets at fair value 1,022 196 112 1,330 717 411 99 1,227 Liabilities at fair value:Derivative financial current liabilities - 134 - 134 - 127 - 127 Derivative financial non-current liabilities - 109 - 109 - 114 - 114 Total liabilities at fair value - 243 - 243 - 241 - 241

1 The balance does not include equity investments of 155 carried at cost.

Available-for-sale financial assets classified as Level 1 refer to listed securities quoted in active markets. A quoted market price in an active market provides the most reliable evidence of fair value and is used without adjustment to measure fair value whenever available, with limited exceptions. The total fair value is either the price of the most recent trade at the time of the market close or the official close price as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. The decrease in the available-for-sale financial assets is related to the share price evolution of Erdemir and the appreciation of the USD.

Derivative financial assets and liabilities classified as Level 2 refer to instruments to hedge fluctuations in interest rates, foreign exchange rates, raw materials (base metal), freight, energy, and emission rights. The total fair value is based on the price a dealer would pay or receive for the security or similar securities, adjusted for any terms specific to that asset or liability. Market inputs are obtained from well-established and recognized vendors of market data and the fair value is calculated using standard industry models based on significant observable market inputs such as foreign exchange rates, commodity prices, swap rates and interest rates. Due to the temporary trading suspension of the Hunan Valin securities between May 14, 2015 and July 15, 2015, the investment with a carrying amount of 231 was reclassified from Level 1 to Level 2 as of June 30, 2015.

Derivative financial assets classified as Level 3 refer to the call option on the 1,000 mandatory convertible bonds. The fair valuation of Level 3 derivative instruments is established at each reporting date in relation to which an analysis is performed in respect of changes in the fair value measurement since the last period. ArcelorMittal’s valuation policies for Level 3 derivatives are an integral part of its internal control procedures and have been reviewed and approved according to the Company’s principles for establishing such procedures. In particular, such procedures address the accuracy and reliability of input data, the accuracy of the valuation model and the knowledge of the staff performing the valuations.

ArcelorMittal estimates the fair value of the 1,000 mandatory convertible bonds through the use of binomial valuation models. Binomial valuation models use an iterative procedure to price options, allowing for the specification of nodes, or points in time, during the time span between the valuation date and the option’s expiration date. In contrast to the Black-Scholes model, which provides a numerical result based on inputs, the binomial model allows for the calculation of the asset and the option for multiple periods along with the range of possible results for each period.

Observable input data used in the valuations include zero coupon yield curves, stock market prices, European Central Bank foreign exchange fixing rates and Libor interest rates. Unobservable inputs are used to measure fair value to the extent that relevant observable inputs are not available. Specifically, the Company computes unobservable volatility data based mainly on the movement of stock market prices observable in the active market over 90 working days.



Portfolio of Derivatives The Company manages the counter-party risk associated with its instruments by centralizing its commitments and by applying procedures which specify, for each type of transaction and underlying, risk limits and/or the characteristics of the counter-party. The Company does not generally grant to or require from its counter-parties guarantees of the risks incurred. Allowing for exceptions, the Company’s counterparties are part of its financial partners and the related market transactions are governed by framework agreements (mainly the International Swaps and Derivatives Association agreements which allow netting only in case of counterparty default). Accordingly, derivative assets and derivative liabilities are not offset.

The portfolio associated with derivative financial instruments classified as Level 2 as of December 31, 2014 is as follows:

Assets Liabilities

Notional Amount

Fair Value

Average Rate*

Notional Amount

Fair Value

Average Rate*

Interest rate swaps - fixed rate borrowings/loans 50 - 0.74% 1,118 (54) 2.13%Total interest rate instruments - (54)Foreign exchange rate instrumentsForward purchase of contracts 2,137 132 217 (3)Forward sale of contracts 475 5 287 (5)Currency swaps purchases 479 2 479 (95)Currency swaps sales 125 - 250 (3)Exchange option purchases 136 1 712 (8)Exchange options sales 218 1 715 (7)Total foreign exchange rate instruments 141 (121)Raw materials (base metal), freight, energy, emission rightsTerm contracts sales 146 20 82 (13)Term contracts purchases 501 35 468 (55)Options sales/purchases 7 - 7 - Total raw materials (base metal), freight, energy, emission rights 55 (68)Total 196 (243)

* The average rate is determined for fixed rate instruments on the basis of the U.S. dollar and foreign currency rates and for the variable rate instruments generally on the basis of Euribor or Libor.





The portfolio associated with derivative financial instruments classified as Level 2 as of June 30, 2015 is as follows:

Assets LiabilitiesNotional Amount

Fair Value

Average Rate*

Notional Amount

Fair Value

Average Rate*

Interest rate swaps - fixed rate borrowings/loans 60 - 0.89% 60 (1) 1.39%Total interest rate instruments - (1)Foreign exchange rate instrumentsForward purchase of contracts 1,710 39 844 (18)Forward sale of contracts 893 6 640 (8)Currency swaps purchases 744 53 1,396 (140)Exchange option purchases 330 3 317 (5)Exchange options sales 271 1 305 (1)Total foreign exchange rate instruments 102 (172)Raw materials (base metal), freight, energy, emission rightsTerm contracts sales 483 42 61 (3)Term contracts purchases 444 36 680 (65)Options sales/purchases 7 - 6 -Total raw materials (base metal), freight, energy, emission rights 78 (68)Total 180 (241)

* The average rate is determined for fixed rate instruments on the basis of the U.S. dollar and foreign currency rates and for the variable rate instruments generally on the basis of Euribor or Libor.



Note 10: Provisions Provisions, as of December 31, 2014 and June 30, 2015, are comprised of the following:

December 31, 2014 June 30, 2015

Environmental 855 793 Asset retirement obligations 305 306 Site restoration 46 54 Staff related obligations 190 166 Voluntary separation plans 153 106 Litigation and other (see note 13) 758 530 Tax claims 271 209 Other legal claims 289 266 Other unasserted claims 198 55 Commercial agreements and onerous contracts 122 97 Other 182 146 Total 2,611 2,198 Short-term provisions 1,024 712 Long-term provisions 1,587 1,486 Total 2,611 2,198


Note 11: Segment and geographic informationReportable segments

ArcelorMittal reports its operations in five segments: NAFTA, Brazil, Europe, ACIS and Mining.

NAFTA represents the flat, long and tubular facilities of the Company located in North America (Canada, United States and Mexico). NAFTA produces flat products such as slabs, hot-rolled coil, cold-rolled coil, coated steel and plate. These products are sold primarily to customers in the following industries: distribution and processing, automotive, pipe and tubes, construction, packaging, and appliances.

NAFTA also produces long products such as wire rod, sections, rebar, billets, blooms and wire drawing, and tubular products;

Brazil includes the flat operations of Brazil and the long and tubular operations of Brazil and neighboring countries including Argentina, Costa Rica, Trinidad and Tobago and Venezuela. Flat products include slabs, hot-rolled coil, cold-rolled coil and coated steel. Long products consist of wire rod, sections, bar and rebar, billets, blooms and wire drawing;

Europe is the largest flat steel producer in Europe, with operations that range from Spain in the west to Romania in the east, and covering the flat carbon

steel product portfolio in all major countries and markets. Europe produces hot-rolled coil, cold-rolled coil, coated products, tinplate, plate and slab. These products are sold primarily to customers in the automotive, general industry and packaging industries. Europe produces also long products consisting of sections, wire rod, rebar, billets, blooms and wire drawing, and tubular products. In addition, it includes Distribution Solutions, primarily an in-house trading and distribution arm of ArcelorMittal. Distribution Solutions also provides value-added and customized steel solutions through further steel processing to meet specific customer requirements;

ACIS produces a combination of flat, long products and tubular products. Its facilities are located in Asia, Africa and Commonwealth of Independent States; and

Mining comprises all mines owned by ArcelorMittal in the Americas (Canada, USA, Mexico and Brazil), Asia (Kazakhstan), Europe (Ukraine and Bosnia & Herzegovina) and Africa (Algeria and Liberia). It supplies the Company and third parties customers with iron ore and coal.




The following table summarizes certain financial data relating to ArcelorMittal’s operations in its different reportable segments:

NAFTA Brazil Europe ACIS Mining Others* Eliminations Total

Six months ended June 30, 2014Sales to external customers 10,300 4,581 20,692 4,158 707 54 - 40,492 Intersegment sales** 51 206 148 149 1,932 233 (2,719) - Operating income 77 592 414 5 507 (122) 33 1,506 Depreciation 359 247 810 260 314 21 - 2,011 Capital expenditures 226 241 518 215 429 20 - 1,649 Six months ended June 30, 2015Sales to external customers 9,297 4,023 16,977 3,262 417 32 - 34,008 Intersegment sales** 25 263 170 108 1,305 169 (2,040) - Operating income (52) 566 704 7 (78) (20) 23 1,150 Depreciation 311 171 592 214 307 13 - 1,608 Impairment 19 - - - - - - 19 Capital expenditures 187 229 432 179 263 10 (13) 1,287

* Others include all other operational and non-operational items which are not segmented, such as corporate and shared services, financial activities, and shipping and logistics.** Transactions between segments are reported on the same basis of accounting as transactions with third parties except for certain mining products shipped internally and

reported on a cost plus basis.

The reconciliation from operating income to net income is as follows:



Operating income 1,506 1,150 Income from investments in associates and joint ventures 154 123 Financing costs - net (1,516) (1,477)Income (loss) before taxes 144 (204)Income tax (expense) (217) (334)Net loss (including non-controlling interests) (73) (538)



Geographical information Sales (by destination)



AmericasUnited States 8,345 7,609Brazil 3,295 2,238Canada 1,725 1,471Argentina 596 608Mexico 1,144 982Others 788 912Total Americas 15,893 13,820EuropeGermany 3,570 2,860France 2,573 2,057Spain 2,222 1,876Poland 1,868 1,559Italy 1,447 1,287Turkey 1,177 1,090Czech Republic 819 653United Kingdom 771 647Belgium 653 578Netherlands 487 426Romania 369 315Russia 371 309Others 2,602 2,180Total Europe 18,929 15,837Asia & AfricaSouth Africa 1,348 1,211Morocco 391 318China 497 275Kazakhstan 718 246South Korea 232 127India 107 73Others 2,377 2,101Total Asia & Africa 5,670 4,351Total 40,492 34,008

The table below presents sales to external customers by product type. In addition to steel produced by the Company, amounts include material purchased for additional transformation and sold through distribution services. Others include mainly non-steel sales and services.

Product segmentation Sales (by products)

Six months ended

June 30, 2014Six months ended

June 30, 2015

Flat products 22,377 19,594Long products 9,778 7,619Tubular products 1,181 1,261Mining products 707 417Others 6,449 5,117Total 40,492 34,008





Note 12: CommitmentsThe Company’s commitments consist of the following:

December 31, 20141 June 30, 2015

Purchase commitments 22,735 22,340Guarantees, pledges and other collateral 4,266 3,939Non-cancellable operating leases 1,662 1,605Capital expenditure commitments 748 432Other commitments 1,644 1,495Total 31,055 29,811

1 The total commitments balance as of December 31, 2014 shown in the table above has been revised to correct the prior period disclosure, decreasing the balance by 1,264. The revision impacted only the disclosed amount and had otherwise no impact on the Company’s consolidated financial statements. The Company has evaluated the impact of the revision and determined that it did not have a material impact on any of its prior period annual and interim consolidated financial statements.

Purchase commitments Purchase commitments consist primarily of major agreements for procuring iron ore, coking coal, coke and hot metal. The Company also has a number of agreements for electricity, industrial and natural gas, scrap and freight contracts. Purchase commitments include commitments given to associates for 317 and 576 as of December 31, 2014 and June 30, 2015, respectively. Purchase commitments include commitments given to joint ventures for 731 and 1,492 as of December 31, 2014 and June 30, 2015, respectively.

Guarantees, pledges and other collateral Guarantees related to financial debt and credit lines given on behalf of third parties were 101 and 87 as of December 31, 2014 and June 30, 2015, respectively. Additionally, 22 and 11 were related to guarantees given on behalf of associates and guarantees of 1,087 and 1,186 were given on behalf of joint ventures as of December 31, 2014 and June 30, 2015, respectively. Pledges and other collateral mainly relate to mortgages entered into by the Company’s operating subsidiaries. Other sureties, first demand guarantees, letters of credit, pledges and other collateral included nil of commitments given on behalf of associates as of December 31, 2014 and June 30, 2015.

Non-cancellable operating leasesNon-cancellable operating leases mainly relate to commitments for the long-term use of various facilities, land and equipment belonging to third parties.

Capital expenditure commitmentsCapital expenditure commitments mainly relate to commitments associated with investments in expansion and improvement projects by various subsidiaries. In 2008, ArcelorMittal Temirtau announced a decision to expand its production capacity from 4 million tons to 6 million tons and committed to improve the safety and security in its mining area. There were no outstanding commitments for these projects as of December 31, 2014 and June 30, 2015, respectively. Accordingly, the commitments as of December 31, 2014 have been retrospectively adjusted by 103 and 82 to correct the prior period disclosure.

Other commitmentsOther commitments given comprise mainly commitments incurred for gas supply to electricity suppliers.

Commitments to sellIn addition to the commitments presented above, the Company has firm commitments to sell natural gas and electricity for 435 and 644 as of December 31, 2014 and June 30, 2015, respectively.



Note 13: Contingencies ArcelorMittal may be involved in litigation, arbitration or other legal proceedings. Provisions related to legal and arbitral proceedings are recorded in accordance with the principles described in note 2 to consolidated financial statements for the year ended December 31, 2014.Most of these claims involve highly complex issues. Often these issues are subject to substantial uncertainties and, therefore, the probabilities of loss and an estimate of damages are difficult to ascertain. Consequently, for a large number of these claims, the Company is unable to make a reasonable estimate of the expected financial effect that will result from ultimate resolution of the proceeding. In those cases, the Company has disclosed information with respect to the nature of the contingency. The Company has not accrued a reserve for the potential outcome of these cases. In cases in which quantifiable fines and penalties have been assessed or the Company has otherwise been able to reasonably estimate the amount of probable loss, the Company has indicated the amount of such fine or penalty or the amount of provision accrued. In a limited number of ongoing cases, the Company is able to make a reasonable estimate of the expected loss or range of possible loss and has accrued a provision for such loss, but believe that publication of this information on a case-by-case basis would seriously prejudice the Company’s position in the ongoing legal proceedings or in any related settlement discussions. Accordingly, in these cases, the Company has disclosed information with respect to the nature of the contingency, but

has not disclosed the estimate of the range of potential loss nor the recorded as a loss. These assessments can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. These assessments are based on estimates and assumptions that have been deemed reasonable by management. The Company believes that the aggregate provisions recorded for the above matters are adequate based upon currently available information. However, given the inherent uncertainties related to these cases and in estimating contingent liabilities, the Company could, in the future, incur judgments that could have a material effect on its results of operations in any particular period. The Company considers it highly unlikely, however, that any such judgments could have a material adverse effect on its liquidity or financial condition.

Tax ClaimsBrazilIn May 2014, ArcelorMittal Comercializadora de Energia received a tax assessment from the state of Minas Gerais alleging that the Company did not correctly calculate tax credits on interstate sales of electricity from the February 2012 to December 2013 period. The amount claimed totals 49. ArcelorMittal Comercializadora de Energia filed its defense in June 2014. Following an unfavorable administrative decision in November 2014, ArcelorMittal filed an appeal in December 2014. In March 2015, there was a further unfavourable decision at the second administrative level. The company is preparing a judicial claim. In the period from May to July 2015, ArcelorMittal Brasil received 9 tax assessments from the state

of Rio Grande do Sul alleging that the Company, through its branches in that state, had not made advance payments of ICMS ( a value added tax) on sales in that state covering the period from May 2010 to April 2015. The amount claimed totals $85 million. ArcelorMittal Brasil has filed its defense in 8 cases and is preparing its defense in the other case. UkraineIn September 2012, the Ukrainian tax authorities conducted an audit of ArcelorMittal Kryvyi Rih, resulting in a tax claim of approximately 71. The claim relates to cancellation of VAT refunds, cancellation of deductible expenses and queries on transfer pricing calculations. On January 2, 2013, ArcelorMittal Kryvyi Rih filed a lawsuit with the District Administrative Court to challenge the findings of this tax audit. On April 9, 2013, the District Administrative Court rejected the claim by the tax authorities retaining only a tax liability of approximately 0.2 against ArcelorMittal Kryvyi Rih. Both parties filed appeals, and, on November 7, 2013, the Court of Appeal rejected the appeal by the tax authorities and retained only a tax liability of approximately 0.1 against ArcelorMittal Kryvyi Rih. On November 12, 2013, the tax authorities filed an appeal in cassation. On June 3, 2015, the Supreme Administrative Court of Ukraine decided entirely in favour of ArcelorMittal Kryvyi Rih. The tax authorities may appeal the judgment to the Supreme Court of Ukraine before June 3, 2016.

Competition/Antitrust ClaimsRomaniaIn 2010 and 2011, ArcelorMittal Galati entered into high volume electricity purchasing contracts with Hidroelectrica, a partially state-owned electricity producer.

Following allegations by Hidroelectrica’s minority shareholders that ArcelorMittal Galati (and other industrial electricity consumers) benefitted from artificially low tariffs, the European Commission opened a formal investigation into alleged state aid in April 2012. The European Commission announced on June 12 2015 that electricity supply contracts signed by Hidroelectrica with certain electricity traders and industrial customers (including the one entered by ArcelorMittal Galati) did not involve state aid within the meaning of the EU rules.

Other Legal ClaimsArgentinaOver the course of 2007 to 2015, the Argentinian Customs Office Authority (Aduana) notified the Company of certain inquiries that it is conducting with respect to prices declared by the Company’s Argentinian subsidiary, Acindar related to iron ore imports. The Customs Office Authority is seeking to determine whether Acindar incorrectly declared prices for iron ore imports from several different Brazilian suppliers and from ArcelorMittal Sourcing on 37 different claims concerning several shipments made between 2002 and 2014. The aggregate amount claimed by the Customs Office Authority in respect of the shipments is approximately 192. The investigations are subject to the administrative procedures of the Customs Office Authority and are at different procedural stages depending on the filing date of the investigation. By May 2015, in 21of the total 37 cases, the administrative branch of the Customs Office Authority ruled against Acindar (representing total claims of 65). These decisions have been appealed to the Argentinian National Fiscal Court.





ItalyIn January 2010, ArcelorMittal received notice of a claim filed by Finmasi S.p.A. relating to a memorandum of agreement (“MoA”) entered into between ArcelorMittal Distribution Services France (“AMDSF”) and Finmasi in 2008. The MoA provided that AMDSF would acquire certain of Finmasi’s businesses for an amount not to exceed €93 million, subject to the satisfaction of certain conditions precedent, which, in AMDSF’s

view, were not fulfilled. Finmasi sued for (i) enforcement of the MoA, (ii) damages of €14 million to €23.7 million or (iii) recovery costs plus quantum damages for Finmasi’s alleged lost opportunity to sell to another buyer. In September 2011, the court rejected Finmasi’s claims other than its second claim. The court appointed an expert to determine the quantum of damages. In May 2013, the expert’s report was issued and valued the quantum of damages

in the range of €37.5 million to €59.5 million. ArcelorMittal appealed the decision on the merits. In May 2014, the Court of Appeals issued a decision rejecting ArcelorMittal’s appeal. In June 2014, ArcelorMittal filed an appeal of the Court of Appeal’s judgment with the Italian Court of Cassation. On December 18, 2014, the Court of Milan issued a decision on the quantum of the damages and valued the quantum of damages in the sum of €23.7 million plus interest. In

June 2015, both parties served appeals of the decision on quantum, with ArcelorMittal also seeking the suspension of the enforceability of the decision. On July 1, 2015, Finmasi formally notified to AMDSF the declaration of enforcement of the decision of December 18, 2014. On July 28, 2015, AMDSF filed an appeal against such declaration with the Court of Appeal of Reims in France.


To the shareholders of ArcelorMittal24-26 boulevard d’AvranchesL-1160 LuxembourgLuxembourg

REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS

Introduction

We have reviewed the accompanying condensed consolidated statement of financial position of ArcelorMittal and its subsidiaries as of June 30, 2015 and the related condensed consolidated statements of operations, other comprehensive income, changes in equity and cash flows for the six month period then ended (collectively, the “interim financial statements”). The Board of Directors is responsible for the preparation and fair presentation of the interim financial statements in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union. Our responsibility is to express a conclusion on the interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, as adopted by the Institut des Réviseurs d’Entreprises. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union.

For Deloitte Audit S.à.r.l, Cabinet de révision agréé

Vafa Moayed, Réviseur d’entreprises agréé

Partner

August 3, 2015

560, rue de NeudorfL-2220 Luxembourg

Report of the Réviseur d’entreprises agréé on review of interim financial information


Documents

Interim Financial Report...China continues to distort global steel market dynamics, with exports remaining at record highs due to the overcapacity in the domestic market and slowing