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Introduction to the ArcelorMittal simplified model

(i) The purpose of the ArcelorMittal's "simplified model" is to help investors (including buy-side analysts and fund
managers) who cover or have invested in the group.
(ii) The "model" has been designed to allow users to make simple estimates and valuations using information
previously disclosed by ArcelorMittal.
(iii) The Model has been simplified to allow efficient time allocation for investors (including buy-side analysts and fund
managers).
(iv) The Model can be developed and expanded for further analysis and improved evaluation. Some suggestion and
options for improvement have been provided.
(v) The data / information included in the Model have been already disclosed in different ArcelorMittal publications (i.e.
fact book, earning release, investor presentation) and are available on the ArcelorMittal web-site.

How to build the ArcelorMittal simplified model


(i) Before using the ArcelorMittal model, users are recommended to study and analyse the group's facts and strategies
by using investor presentations, annual reports, 20-F, Fact book.
(ii) Further study and analysis of the global steel and mining sector is also recommended
(iii) Once ready, investors / buy-side analysts and fund managers should fill the orange boxes in the Divisional, P&L,
Cash flow and Balance Sheet worksheets
(iv) The comment and additional information section should help in filling the orange boxes
Investor Relations

By implementing high standards of financial information disclosure and providing clear, regular, transparent and evenhanded information to all its shareholders, ArcelorMittal aims to be the first choice for investors in the sector.
To meet this objective and provide information to fit the needs of all parties, ArcelorMittal has decided to implement an
active and broad communications policy: road shows with the financial community, conference calls, plant visits,
meetings with retail and private investors, a virtual meeting and conference centre on Second Life and a website
featuring management comments on quarterly, half-year and full-year results.
Private Investors

ArcelorMittals senior management intends to meet private investors and shareholder associations in road shows
throughout 2009. In order to improve the communication and debate with its private investors, ArcelorMittal has
opened a virtual meeting and conference centre on Second Life. The ArcelorMittal virtual meeting and conference
centre enables investors to have access to Group documentation, corporate videos, discuss in real time with company
representatives or other shareholders present on the location or leave questions in the dedicated question box. This is
also the optimal location to arrange interactive Group presentations and courses. A dedicated toll free number for
private investors is available at 00800 4792 4792. Requests for information or meetings on the virtual meeting and
conference centre may also be sent to: PrivateInvestors@arcelomittal.com
Analysts and Investors
As the world's leading steel company and major investment vehicle in the steel sector, ArcelorMittal constantly seeks
to develop relationships with financial analysts and international investors. Depending on their geographical location,
investors may use the following e-mails:
InstitutionalsAmericas@arcelormittal.com
InstitutionalsEurope@arcelormittal.com
Socially Responsible Investors
The Investor Relations team is also a privileged source of information the growing Socially Responsible Investment
community. The team organizes special events on ArcelorMittal's Corporate Responsibility strategy and answers all
requests for information sent to the Group (SRI@arcelormittal.com).
Credit and Fixed Income Investors
Credit, Fixed Income Investors and rating agency are followed by a dedicated team from Investor Relations
(CreditFixedIncome@arcelormittal.com).
Contact information ArcelorMittal Investor Relations
ArcelorMittal
Investor Relations
19, avenue de la Libert
L-2930 Luxembourg
Dedicated Investor Relations teams are at the disposal of analysts and investors:
E-mail
InstitutionalsAmericas@arcelormittal.com
InstitutionalsEurope@arcelormittal.com
PrivateInvestors@arcelormittal.com
SRI@arcelormittal.com
CreditFixedIncome@arcelormittal.com
To subscribe to ArcelorMittal releases and results, visit the subscription page.
the filings with the Netherlands Authority for the Financial Markets and the Securities and Exchange Commission
(SEC) made or to be made by ArcelorMittal including Mittal Steels Annual Report on Form 20-F filed with the SEC.
ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new
information, future events, or otherwise.

Page 1 of 16

Telephone
+ 1 312 899 3569
+ 352 4792 2652
00800 4792 4792 (toll-free, from the EU and Switzerland)
+ 352 4792 2652
+ 44 203 214 2854
+ 33 1 7192 1026

138542950.xls.ms_office
Model Guide

Terms of reference
These formulas used in the model have been provided as a start-up kit for analysts and they have flexibility
to modify or change these definitions to suit their methodology and comparability,etc.
The segmental information provided contain rounding differences from previous published information.

Definitions
Sales

Sales include steel and non-steel sales and related transportation costs

Average steel selling prices

Average steel selling prices are based on steel sales alone

Apparent steel selling prices

Apparent steel selling prices are sales divided by steel shipments

Steel products

steel products are to finished and semi-finished steel products and exclude direct reduced iron, or DRI;

Tonnes or MT

tonnes or MT are to metric tonnes and are used in measurements involving iron ore, iron ore pellets,
DRI, hot metal, coke, coal, pig iron and scrap (a metric tonne is equal to 1,000 kilograms or 2,204.62 pounds);

Crude steel

crude steel are to the first solid steel product upon solidification of liquid steel, including ingots from
conventional mills and semis (e.g., slab, billet and blooms) from continuous casters;

EBITDA

EBITDA is defined as operating income plus depreciation

Ebitda margin

Ebitda margin is defined as EBITDA divided by Sales

Operating margin

Operating margin is defined as Operating Income divided by Sales

Long-term contracts

Long-term contracts are defined as contracts entered into which are in excess of 12 months

Strategic contract

Strategic contract is defined as a contract that has business conditions better then open market in long-term

Operating income per tonne

Defined as operating income divided by steel shipments

Enterprise Value (EV)

Calculated as market capitalization plus net financial debt plus minority interest less investments/others

Invested Capital (IC)

Calculated as intangibles assets plus PPE plus inventory, trade accounts receivable and trade account payables

ROIC (%)

Calculated as operating income after tax divided by invested capital

RoE (%)

Calculated as net income divided by group share of shareholders equity

Market capitalization

Calculated as weighted average common shares outstanding multiplied by share price

Metric tonne

All shipments figures are provided in metric tonnes

Few suggestions for improving model


Production & Shipment

(i) Crude steel production data can be modeled for monitoring and estimation of internal inventory and productivity
(ii) Shipment by market (N. America, exports, S. America) can be modeled for monitoring and estimation of volume
and revenue
(iii) Growth/value added investment published in value plan and quarterly results can be added to model for monitoring
and estimation of volume and revenue growth
(iv) Macro-economic data and sector data (Automotive, construction) can be added to model for monitoring/ estimation
of demand and market share

Steel price and currency

(i) Future direction on prices can be modeled using steel prices published by external provider (SBB, MB, CRU, MEPS)
(ii) Currency (BRL, CAD) data can be added to model for monitoring and estimation of selling price and cost in USD

Sales & revenue

(i) Steel sales can be calculated by multiplying steel shipments by average steel price
(ii) Non steel sales can be calculated by making the difference between total sales and steel sales

Raw materials

(i) External sources of information on prices of iron ore, scrap, coal, gas, base metals and other raw materials data
can be added to model for monitoring and estimation of variable cost

Employee

(i) Employee data can be added to model for monitoring and estimation of productivity improvement and fixed costs

Synergy and management gain

(i) Synergies and management gains data can be estimated to measure the impact on cost reduction

CAPEX

(i) CAPEX data can be added to model for monitoring and estimation of growth and depreciation

Restatement of the segment figures of prior periods based on the 2008 GMB segment changes
Methodology used:
In each segment the contribution of the entities who changed segment where taken.
When leaving the scope the their contribution would be -/- and when entering the scope it would be +/+.
Based on this the delta of the changes by each segment where taken.
The delta of the changes would be added to the originally reported segment information to get the restated figures.
Assumption in the restatement is we will not take into account effect on intercompany eliminations
FCA
IN

FCE

LONG

OUT

Dofasco Pipes & Tubes


Canada Flat

IN

Annaba Flat
Skopje
Galati Long

OUT

Paul Wurth

IN

Annaba Long
Sonasid
Zenica
Canada Flat
Pipes & Tubes

OUT

Wire Solutions*
Galati Long

AACIS*** IN
OUT

Paul Wurth
Annaba
Skopje
Sonasid
Zenica
Pipes & Tubes

Stainless No change
AM3S

IN

Wire Solutions*

Other***

* Wire Solutions consists for ex-Mittal of Gandrange Wire drawing + TrefilEurope.


As data for Gandrange Wire drawing is missing for 2005 & 2006 we have taken based on the 2007 split 10% of full Gandrange contribution as Wire drawing
** Changes in the mining activity have not been reclassed (Tebessa, Prijedor)
*** Changes in the trading activity of Duba have not been reclassed

Name change
As from 1.1.10 AM3S changed name to Distribution Solutions

Changes to the mining segmentation as from 1.1.11


Recast segmental data for 2008FY, 2009 and 2010 quarterly
Basic objective of the mining as a separate segmentation:
Create world class mining operations for AM
Price externally marketable Iron Ore and Coal to steel units at market price
Steel to be competitive on a stand alone basis
Ensure appropriate capital allocation for mining business for long term sustainability and growth
Focus on mine safety, mine planning, MRMR, quality, expansion, capex and logistics
Ensuring world class project control and management systems
Basic Principles that will be applied for mining as a separate segmentation:
Iron Ore:
Iron ore not considered marketable due to quality and/or logistic constraints will continue to be transferred at cost (Andrade, Temirtau, Bosnia, Algeria, Ukraine Underground, Cliff, Kumba and large part of combined Hibbing and Minorca).
Simultaneously work on addressing the issues of logistic, quality and market for these mines.
Marketable ores from other mines to be priced with reference to quarterly Vale prices (benchmark China CFR prices adjusted for sea freight, Fe% and other costs/penalties).
Coal:
Kuzbass and Princeton coal to be priced with reference to relevant market price for both internal and external customers
Kazakhstan coal Surplus volume of 1 mln ton to be priced to customers (internal/external) at market price and we will work on addressing the issues of logistics and market for rest of the volume

FLAT CARBON AMERICAS (FCA)


New segmentation and recast data
Steel Shipment (000t)
Steel Shipment
Change

Crude Steel Production (000t)


Crude Steel Production
Change

Selling price (USD/t)


Steel products & Other
Change
Steel products
P&L (USDm)
Sales
Change
EBITDA
Change
Depreciation and amortisation
Change
Operating income / loss
Change

1Q10
5,271
9.0%

1Q10
5,679
5.1%

1Q10

2Q10
5,346
1.4%

2Q10
5,854

3Q10
4,979
-6.9%

3Q10
5,932

3.1%

1.3%

2Q10

3Q10

4Q10
5,432
9.1%

4Q10
5636

1Q11
5,563
2.4%

1Q11
6,063

-5.0%

7.6%

4Q10

1Q11

2Q11
5,520
-0.8%

2Q11
6,277
3.5%

2Q11

3Q11
5,708
3.4%

3Q11
5,866
-6.5%

3Q11

4Q11
5,458
-4.4%

4Q11

1Q12
5,672
3.9%

3Q12

4Q12

2006

2007

2008

2009

28,259

29,960

26,862

25,810

25,810

16,121

#DIV/0!

n/a

6.0%

-10.3%

-3.9%

0.0%

-37.5%

2005

5,735
1.1% -100.0%

3Q12

4Q12

2006

2007

2008

2008

n/a

n/a

30,309

26,476

26,476

16,556

4.0%

-3.8% -100.0%

#DIV/0!

n/a

n/a

n/a

-12.6%

0.0%

-37.5%

4Q11

1Q12

6,249

2Q12

2008
Old
basis

2005

2.4%

6,009

1Q12

2Q12

6,014

2Q12

3Q12

4Q12

2005

2008

2008

773

868

883

842

888

1,009

963

922

929

934

#DIV/0!

#DIV/0!

739

730

813

1,047

1,047

827

-8.1%

12.2%

1.7%

-4.6%

5.5%

13.6%

-4.5%

-4.3%

0.8%

0.6%

#DIV/0!

#DIV/0!

n/a

-1.2%

11.3%

28.8%

0.0%

-21.0%

n/c

n/c

n/c

920

920

698

3Q12

4Q12

2005

2006

2007

2008

2008

2009

20,895

21,878

21,839

27,031

27,031

13,340

1.7% -100.0%

#DIV/0!

n/a

4.7%

-0.2%

23.8%

0.0%

-50.6%

722

810

826

769

830

961

910

868

886

881

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

4,077
0.2%
361

4,640

4,394

4573

13.8%

-5.3%

4.1%

657

379

158

4,939
8.0%
528

5,567

5,499

5,030

12.7%

-1.2%

-8.5%

924

420

237

5,270
4.8%
632

-31.1%

82.0%

-42.3%

-58.3%

234.2%

75.0%

-54.5%

-43.6%

166.7%

210

216

213

225

221

227

227

236

225

-39.0%

2.9%

-1.4%

5.6%

-1.8%

2.7%

0.0%

4.0%

-4.7%

166

-67

407

151

441

-16.1%

192.1%

307

697

193

-62.4% -140.4% -558.2%

127.0%

-72.3%

Other operating expenses/exceptional

-99.5% 40600.0%

5,359
474
-25.0% -100.0%

#DIV/0!

229
1.8% -100.0%

#DIV/0!

245
-39.8% -100.0%

#DIV/0!

3,632

2006

2007

2009

2009

3,593

4,104

5,834

5,834

1,119

n/a

-1.1%

14.2%

42.2%

0.0%

-80.8%

982

984

940

1,228

1,228

1,170

n/a

0.2%

-4.5%

30.6%

0.0%

-4.7%

2,524

-757

2,650

2,610

3,164

2,524

n/a

-1.5%

21.2%

-20.2%

2082

0.0% -130.0%
2082

706

Margin and Ratio

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

2005

2006

2007

2008

2008

EBITDA Margin (%)

8.9%

14.2%

8.6%

3.5%

10.7%

16.6%

7.6%

4.7%

12.0%

8.8%

#DIV/0!

#DIV/0!

17.4%

16.4%

18.8%

21.6%

21.6%

8.4%

Operating margin (%)

3.7%

9.5%

3.8%

-1.5%

6.2%

12.5%

3.5%

0.0%

7.7%

4.6%

#DIV/0!

#DIV/0!

12.7%

11.9%

14.5%

9.3%

9.3%

-5.7%

705

745

806

813

793

841

890

878

818

852

#DIV/0!

#DIV/0!

611

610

660

821

821

758

29

82

33

-12

55

126

34

72

43

#DIV/0!

#DIV/0!

94

87

118

98

98

-47

Cash cost (USD/t)


Operating income per ton (USD/t)

Page 5 of 16

2009

138542950.xls.ms_office
FCA

FLAT CARBON EUROPE (FCE)


New segmentation and recast data
Steel Shipment (000t)
Steel Shipment
Change

Crude Steel Production (000t)

1Q10
6,856
7.0%

1Q10

2Q10

3Q10

7,540

6,521

10.0%

-13.5%

2Q10

3Q10

4Q10
6,593
1.1%

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

6,385

6,188

7,461

6,771

30,709

33,111

35,641

33,512

-3.0%

-10.9%

-3.1%

20.6%

-9.2%

-100.0%

#DIV/0!

n/a

7.8%

7.6%

-6.0%

2Q12

3Q12

4Q12

2005

2006

1Q11

4Q11

-0.1%

14.9%

-16.5%

-1.4%

Selling price (USD/t)

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

857

874

961

1,034

1,058

1,193

1,205

1,132

1,035

1,067

-7.5%

2.0%

10.0%

7.6%

2.3%

12.8%

1.0%

-6.1%

-8.6%

3.1%

#DIV/0!

757

776

855

907

928

1,026

1,021

954

861

884

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

Sales

5,875

6,590

6,268

Change

-1.0%

12.2%

-4.9%

8.8%

14.6%

EBITDA

460

560

452

543

471

Change

-30.0%

21.7%

-19.3%

20.1%

370

338

372

401

-13.3%

-8.6%

10.1%

7.8%

Depreciation and amortisation


Change
Operating income / loss
Change

7,812

3.1%

8,551

7,390

6,619

-6.1%

-10.4%

1Q12

Change

8.9%

7,870

3Q11

7,006

6,817

7,631

2Q11

7,107

P&L (USDm)

2008 Old
basis

7,166

8,507

Steel products

2007

12.0%

7,406

Change

2006

7,384

Crude Steel Production

Steel products & Other

2005

7,182
8.5%

7,143
-0.5%

7,696

7,003

7,719

7,223

9.5%

-10.0%

-9.0%

10.2%

-6.4%

636

367

26

130

381

-13.3%

35.0%

-42.3%

-92.9%

400.0%

193.1%

365

391

473

452

358

359

-9.0%

7.1%

21.0%

-4.4%

-20.8%

0.3%

90

222

80

142

106

245

-106

-569

-284

-154

-60.9%

146.7%

-64.0%

77.5%

-25.4%

131.1%

-143.3%

436.8%

-50.1%

-45.8%

143

56

176

Other operating expenses/exceptional

-100.0%

2007

2008

38,397

34,338
-10.6%

#DIV/0!

n/a

#DIV/0!

#DIV/0!

3Q12

4Q12

2005

2006

2007

2008

#DIV/0!

#DIV/0!

812

833

980

1,143

#DIV/0!

n/a

2.5%

17.7%

16.6%

n/c

n/c

n/c

1018

2005

2006

2007

2008

24,935

27,567

34,924

38,300

3Q12
-100.0%
-100.0%

4Q12
#DIV/0!
#DIV/0!

-100.0%

#DIV/0!

-100.0%

#DIV/0!

n/a

10.6%

26.7%

9.7%

4,153

3,863

5,562

6,448
15.9%

n/a

-7.0%

44.0%

974

1,046

1,415

1,924

n/a

7.4%

35.3%

36.0%

3,179

2,817

4,147

2,773

n/a

-11.4%

47.2%

-33.1%
1751

Margin and Ratio

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

2005

2006

2007

2008

EBITDA Margin (%)

7.8%

8.5%

7.2%

8.0%

6.0%

7.4%

4.8%

0.4%

1.7%

5.3%

#DIV/0!

#DIV/0!

16.7%

14.0%

15.9%

16.8%

Operating margin (%)

1.5%

3.4%

1.3%

2.1%

1.4%

2.9%

-1.4%

-8.1%

-3.7%

-2.1%

#DIV/0!

#DIV/0!

12.7%

10.2%

11.9%

7.2%

790

800

892

952

994

1,105

1,148

1,128

1,017

1,010

#DIV/0!

#DIV/0!

677

716

824

950

13

29

12

22

14

34

-17

-92

-38

-23

#DIV/0!

#DIV/0!

104

85

116

83

Cash cost (USD/t)


Operating income per ton (USD/t)

Page 6 of 16

138542950.xls.ms_office
FCE

LONG CARBON (LC)


New segmentation and recast data
Steel Shipment (000t)
Steel Shipment
Change

Crude Steel Production (000t)


Crude Steel Production

1Q10
5,694
8.9%

1Q10
5,738

2Q10
5,984
5.1%

2Q10
6,015

3Q10

4Q10

5,772

5,698

-3.5%

-1.3%

3Q10

4Q10

1Q11
5,872
3.1%

1Q11

5,472

5,325

6,059
13.8%

2Q11
6,167
5.0%

2Q11
6,414

-3.0%

-2.3%

-1.8%

3Q11

5,474

-12.5%

-2.4%

-9.0%

-2.7%

Selling price (USD/t)

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

837

914

955

977

1,003

1,081

1,116

-4.4%

9.2%

4.5%

2.3%

2.6%

7.7%

3.2%

728

808

832

837

902

973

967

P&L (USDm)
Sales

1Q10
4,766

2Q10
5,468

3Q10
5,514

4Q10
5,567

1Q11
5,889

2Q11
6,664

4Q11

5,611

4.8%

Steel products

1Q12
5,738

7.1%

Change

4Q11
5,846

Change

Steel products & Other

5.9%

3Q11
5,984

3Q11
6,676

1Q12
5,785

1Q12

2Q12
976

-9.0%

-1.1%

-2.8%

#DIV/0!

906

910

885

1Q12

5.8%

13.2%

0.2%

-11.1%

-2.9%

315

480

610

438

338

437

Change

-0.4%

41.0%

-10.9%

-47.8%

52.4%

27.1%

-28.2%

-22.8%

29.3%

Margin and Ratio


EBITDA Margin (%)
Operating margin (%)
Cash cost (USD/t)
Operating income per ton (USD/t)

257

263

264

287

270

252

253

408

281

-54.2%

2.3%

0.4%

8.7%

-5.9%

-6.7%

0.4%

61.3%

-31.1%

2Q12

185

-107

110

n/a

7.6%

14.0%

-4.5%

4Q12

2005

2006

4Q12

2005

2006

2007

2008

719

745

952

1,190

#DIV/0!

n/a

3.6%

27.9%

25.0%

n/c

n/c

n/c

1055

3Q12

4Q12
#DIV/0!
#DIV/0!

231

414

339

28

210

358

-18.1%

-91.7%

650.0%

70.5%

37

46

-6.7%

#DIV/0!

-17.8% -100.0%

85.7%

2008
25,198

3Q12

29.1% -100.0%

223

2007
27,015

#DIV/0!

564

-382.3%

-48.3% -157.8% -202.8%

27,115

#DIV/0!

#DIV/0!

-1.1% -100.0%

1.0%

603

2008 Old
basis

#DIV/0!

5,698

0.8%

2007
28,389

n/a

5,763

677

2006
24,896

#DIV/0!

5,936

14.7%

Other operating expenses/exceptional

3Q12

1,004

480

Change

2Q12

4Q11

4Q11

2005
23,141

4Q12

5,885

1,015

4.1%

Operating income / loss

1.8% -100.0%

1.7% -100.0%

EBITDA

Change

3Q12

5.7%

Change

Depreciation and amortisation

2Q12
5,839

#DIV/0!

333
202.7% -100.0%

#DIV/0!

2005

2006

2007

2008

16,639

18,544

27,035

32,268
19.4%

n/a

11.4%

45.8%

2,604

3,558

5,074

6,678

n/a

36.6%

42.6%

31.6%

564

570

993

1,725

n/a

1.1%

74.2%

73.7%

2,040

2,988

4,081

4,154

n/a

46.5%

36.6%

1.8%
799

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

2005

2006

2007

2008

10.1%

12.4%

10.9%

5.7%

8.2%

9.2%

6.6%

5.7%

7.6%

9.9%

#DIV/0!

#DIV/0!

15.6%

19.2%

18.8%

20.7%

4.7%

7.6%

6.1%

0.5%

3.6%

5.4%

2.8%

-1.8%

1.9%

5.8%

#DIV/0!

#DIV/0!

12.3%

16.1%

15.1%

12.9%

753

801

851

922

921

982

1,042

958

928

879

#DIV/0!

#DIV/0!

606

602

774

944

39

69

59

36

58

31

-18

19

57

#DIV/0!

#DIV/0!

88

120

144

153

Page 7 of 16

138542950.xls.ms_office
LC

ASIA, AFRICA & CIS (AACIS)


New segmentation and recast data
Steel Shipment (000t)
Steel Shipment
Change

Crude Steel Production (000t)

1Q10
3,204
4.2%

1Q10

Crude Steel Production

3,684

Change

-5.5%

Selling price (USD/t)


Steel products & Other
Change
Steel products
P&L (USDm)

2Q10
3,409
6.4%

2Q10
3,885

3Q10
3,261
-4.3%

3Q10

4Q10
3,392
4.0%

4Q10

1Q11
3,142
-7.4%

1Q11
3,706

2Q11
3,304
5.2%

2Q11
3,830

3Q11
3,005
-9.0%

3Q11
3,493

4Q11
3,065
2.0%

4Q11
3,579

1Q12
3,353
9.4%

1Q12
3,615

-1.0% -100.0%

#DIV/0!

18,680

20,309

16,351

13,296

n/a

8.7%

-19.5%

-18.7%

4Q12

2Q12

3Q12

2005

2006

2007

2008

n/a

n/a

18,469

15,118

#DIV/0!

n/a

n/a

n/a

-18.1%

2008

-4.1%

-3.1%

2.6%

3.3%

-8.8%

2.5%

1.0%

2.1% -100.0%

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

2005

2006

2007

666

739

770

750

818

865

872

892

831

806

#DIV/0!

892

663

726

916

988

-10.0%

11.0%

4.2%

-2.6%

9.1%

5.7%

0.8%

2.3%

-6.8%

-3.0%

#DIV/0!

#DIV/0!

n/a

9.5%

26.1%

7.9%

3,691

n/c

n/c

n/c

804

3Q12

4Q12

2005

2006

2007

2008

12,387

14,745

14,971

13,133

-3.9% -100.0%

#DIV/0!

n/a

19.0%

1.5%

-12.3%

3,210

3,103

3,333

3,985

n/a

-3.3%

7.4%

19.6%

557

624

630

621

691

768

771

713

705

687

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

2,518

2,511

-6.2%

18.0%

-0.3%

2,544
1.3%

2,570
1.0%

2,857

2,619

11.2%

-8.3%

2,733
4.4%

2,787
2.0%

EBITDA

229

417

274

215

254

462

284

238

160

Change

-26.1%

82.1%

-34.3%

-21.5%

18.1%

81.9%

-38.5%

-16.2%

-32.8%

Change

2006

3,321

2007

109

109

113

123

129

121

122

145

158

-23.8%

0.0%

3.7%

8.8%

4.9%

-6.2%

0.8%

18.9%

9.0%

120

308

161

92

125

341

162

93

-28.1%

156.7%

-47.7%

-42.9%

35.9%

172.8%

-52.5%

-42.6%

-97.8%

2,677
120
-25.0% -100.0%

#DIV/0!

158
0.0% -100.0%

#DIV/0!

-38
-2000.0% -100.0%

#DIV/0!

376

463

489

549

n/a

23.1%

5.6%

12.3%

2,834

2,640

2,844

3,145

n/a

-6.8%

7.7%

10.6%

Other operating expenses/exceptional


Margin and Ratio
EBITDA Margin (%)
Operating margin (%)
Cash cost (USD/t)
Operating income per ton (USD/t)

2008 Old
basis

2005

5.5%

2,133

Operating income / loss

4Q12

3,611

Change

Change

3Q12

3,726

Sales

Depreciation and amortisation

2Q12

291
1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

2005

2006

2007

2008

10.7%

16.6%

10.9%

8.5%

9.9%

16.2%

10.8%

8.7%

5.7%

4.5%

#DIV/0!

#DIV/0!

25.9%

21.0%

22.3%

30.3%

5.6%

12.2%

6.4%

3.6%

4.9%

11.9%

6.2%

3.4%

0.1%

-1.4%

#DIV/0!

#DIV/0!

22.9%

17.9%

19.0%

23.9%

594

616

686

687

737

725

777

814

783

770

#DIV/0!

#DIV/0!

491

573

712

688

37

90

49

27

40

103

54

30

-11

#DIV/0!

#DIV/0!

152

130

174

237

Page 8 of 16

138542950.xls.ms_office
AACIS

Distribution Solutions
New segmentation and recast data
Steel Shipment (000t)
Steel Shipment

1Q10
4,353

2Q10
4,602

3Q10
4,467

4Q10
4,751

1Q11

2Q11

4,202

4,594

3Q11
4,607

4Q11
4,957

1Q12

2Q12

4,589

4,523

3Q12

4Q12

Change

4.5%

5.7%

-2.9%

6.4%

-11.6%

9.3%

0.3%

7.6%

-7.4%

-1.4%

-100.0%

#DIV/0!

Crude Steel Production (000t)

3Q12

4Q12

n/a

n/a

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

Crude Steel Production

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Change

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

802

869

890

900

1,014

1,093

1,063

984

966

949

#DIV/0!

#DIV/0!

-4.2%

8.3%

2.5%

1.1%

12.7%

7.7%

-2.7%

-7.5%

-1.8%

-1.7%

#DIV/0!

#DIV/0!

2Q12

3Q12

4Q12

-100.0%

#DIV/0!

-100.0%

#DIV/0!
#DIV/0!

Selling price (USD/t)


Steel products & Other
Change

P&L (USDm)
Sales

1Q10
3,492

2Q10

3Q10

3,999

3,977

4Q10
4,276

1Q11

2Q11

3Q11

4Q11

1Q12

4,261

5,019

4,899

4,876

4,431

4,292

Change

0.1%

14.5%

-0.6%

7.5%

-0.4%

17.8%

-2.4%

-0.5%

-9.1%

-3.1%

EBITDA

57

187

126

87

127

115

48

-19

35

385

Change

46.2%

228.1%

-32.6%

-31.0%

46.0%

-9.4%

-58.3%

-139.6%

-284.2%

1000.0%

53

43

43

151

43

46

40

50

40

39

-72.0%

-18.9%

0.0%

251.2%

-71.5%

7.0%

-13.0%

25.0%

-20.0%

-2.5%

-100.0%

144

83

-64

84

69

-109

-10

332

-98.3%

3500.0%

-42.4%

-177.1%

-231.3%

-17.9%

-88.4%

-1462.5%

-90.8%

-3420.0%

-100.0%

#DIV/0!

40

14

Margin and Ratio

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

EBITDA Margin (%)

1.6%

4.7%

3.2%

2.0%

3.0%

2.3%

1.0%

-0.4%

0.8%

9.0%

#DIV/0!

#DIV/0!

Operating margin (%)

0.1%

3.6%

2.1%

-1.5%

2.0%

1.4%

0.2%

-2.2%

-0.2%

7.7%

#DIV/0!

#DIV/0!

789

828

862

882

984

1,067

1,053

987

958

864

#DIV/0!

#DIV/0!

31

19

-13

20

15

-22

-2

73

#DIV/0!

#DIV/0!

Depreciation and amortisation


Change
Operating income / loss
Change
Other operating expenses/exceptional

Cash cost (USD/t)


Operating income per ton (USD/t)

Page 9 of 16

138542950.xls.ms_office
Distribution Solutions (AMDS)

STAINLESS
Spun off from 1.1.11; Figures exclude stainless from 2010 onwards
Steel Shipment (000t)

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

Steel Shipment
Change

Crude Steel Production (000t)

Selling price (USD/t)

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

-100.0%

#DIV/0!

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

2010

2011

-100.0%

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

-100.0%

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

Steel products
P&L (USDm)

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

2011
#DIV/0!

#DIV/0!

#DIV/0!

2010

786
2011

0
#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

-100.0%
0

-100.0%

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

-100.0%

#DIV/0!

-100.0%

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

-100.0%

#DIV/0!

-100.0%

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

-100.0%

#DIV/0!

Other operating expenses/exceptional


Margin and Ratio

2010
#DIV/0!

#DIV/0!

Operating income / loss


Change

#DIV/0!

#DIV/0!

Depreciation and amortisation


Change

-100.0%

-100.0%

EBITDA
Change

2,879

Sales
Change

#DIV/0!

Steel products & Other


Change

2011

0
-100.0%

Crude Steel Production


Change

2010

1Q10

2Q10

3Q10

4Q10

EBITDA Margin (%)

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

1Q11

2Q11

Operating margin (%)

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

Cash cost (USD/t)

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

Operating income per ton (USD/t)

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

Page 10 of 16

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

2010

2011

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

138542950.xls.ms_office
Stainless

Mining
New segmentation and recast data
P&L (USDm)
Sales

1Q10
757

2Q10

3Q10

1,225

1,181

4Q10
1,217

1Q11

2Q11

1,128

1,657

3Q11
1,678

4Q11
1,805

1Q12

2Q12

1,271

1,576

3Q12

4Q12

-100.0%

#DIV/0!

-100.0%

#DIV/0!
#DIV/0!

Change

#DIV/0!

61.8%

-3.6%

3.0%

-7.3%

46.9%

1.3%

7.6%

-29.6%

24.0%

EBITDA

324

643

726

570

607

835

842

779

478

541

Change

#DIV/0!

98.5%

12.9%

-21.5%

6.5%

37.6%

0.8%

-7.5%

-38.6%

13.2%

108

228

109

193

114

117

117

147

129

132

#DIV/0!

111.1%

-52.2%

77.1%

-40.9%

2.6%

0.0%

25.6%

-12.2%

2.3%

-100.0%

216

415

617

377

493

718

725

632

349

409

#DIV/0!

92.1%

48.7%

-38.9%

30.8%

45.6%

1.0%

-12.8%

-44.8%

17.2%

-100.0%

#DIV/0!

Depreciation and amortisation


Change
Operating income / loss
Change
Other operating expenses/exceptional
Margin and Ratio

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

EBITDA Margin (%)

42.8%

52.5%

61.5%

46.8%

53.8%

50.4%

50.2%

43.2%

37.6%

34.3%

#DIV/0!

#DIV/0!

Operating margin (%)

28.5%

33.9%

52.2%

31.0%

43.7%

43.3%

43.2%

35.0%

27.5%

26.0%

#DIV/0!

#DIV/0!

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

10.6

12.8

13.0

12.6

11.8

13.1

14.1

15.1

13.2

14.4

5.2

3.6

4.4

6.3

1.8

2.8

3.3

3.2

1.8

4.0

15.7

16.5

17.4

18.9

13.6

15.9

17.4

18.3

15.0

18.4

0.0

0.0

Own Production

1.6

1.7

1.8

1.8

1.9

2.1

2.1

2.2

2.1

2.1

Long Term Contract

0.1

0.1

0.1

0.1

0.1

0.2

0.1

0.2

0.2

0.2

Total Coal production

1.7

1.8

2.0

1.9

2.1

2.3

2.2

2.4

2.3

2.2

0.0

0.0

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

Market priced

5.4

6.9

6.1

6.7

5.9

7.0

6.7

8.5

6.8

8.2

Cost plus

4.0

5.6

6.1

5.8

3.7

6.2

6.9

6.8

4.8

7.0

Strategic

5.2

3.6

4.4

6.3

2.0

2.8

3.3

3.2

1.8

4.0

14.7

16.1

16.6

18.9

11.7

16.0

16.9

18.5

13.4

19.2

0.0

0.0

Market priced

0.7

0.9

0.9

0.8

1.1

1.3

1.2

1.3

1.2

1.4

Cost plus

0.8

0.8

0.8

0.9

0.9

0.8

0.8

0.8

0.8

0.7

Strategic

0.1

0.1

0.1

0.1

0.1

0.2

0.1

0.2

0.2

0.2

Total Coal shipments

1.6

1.8

1.8

1.8

2.1

2.3

2.2

2.3

2.2

2.3

0.0

0.0

Mining Production
Iron ore:
Own Production
Long Term Contract
Total Iron ore production

Coal:

Mining Shipments
Iron ore:

Total Iron ore shipments


Coal:

Page 11 of 16

138542950.xls.ms_office
Mining

Adjustment
Shipment (000t)

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

Steel Shipment FCA

5,271

5,346

4,979

5,432

5,563

5,520

5,708

5,458

5,672

5,735

Steel Shipment FCE

6,856

7,540

6,521

6,593

7,384

7,166

6,385

6,188

7,461

6,771

Steel Shipment LC

5,694

5,984

5,772

5,698

5,872

6,167

5,984

5,846

5,738

5,839

Steel Shipment AACIS

3,204

3,409

3,261

3,392

3,142

3,304

3,005

3,065

3,353

21,025

22,279

20,533

21,115

21,961

22,157

21,082

20,557

22,224

21,666

5.3%

6.0%

-7.8%

2.8%

4.0%

0.9%

-4.9%

-2.5%

8.1%

-2.5%

Steel Shipment Stainless


Steel Shipment total
Change

3,321

Crude Steel (000t)

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

Crude Steel Production FCA

5,679

5,854

5,932

5,636

6,063

6,277

5,866

6,009

6,249

6,014

Crude Steel Production FCE

7,406

8,507

7,107

7,006

7,631

7,870

7,390

6,619

7,182

7,143

Crude Steel Production LC

5,738

6,015

5,472

5,325

6,059

6,414

5,611

5,474

5,785

5,885

Crude Steel Production AACIS

3,684

3,885

3,726

3,611

3,706

3,830

3,493

3,579

3,615

22,507

24,261

22,237

21,578

23,459

24,391

22,360

21,681

22,831

22,733

Change

-0.1%

7.8%

-8.3%

-3.0%

8.7%

4.0%

-8.3%

-3.0%

5.3%

-0.4%

Mining Production

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

10.6

12.8

13.0

12.6

11.8

13.1

14.1

15.1

13.2

14.4

Crude Steel Production Stainless


Crude Steel Productiont total

3,691

Iron ore:
Own Production
Long Term Contract

5.2

3.6

4.4

6.3

1.8

2.8

3.3

3.2

1.8

4.0

15.7

16.5

17.4

18.9

13.6

15.9

17.4

18.3

15.0

18.4

Own Production

1.6

1.7

1.8

1.8

1.9

2.1

2.1

2.2

2.1

2.1

Long Term Contract

0.1

0.1

0.1

0.1

0.1

0.2

0.1

0.2

0.2

0.2

Total Coal production

1.7

1.8

2.0

1.9

2.1

2.3

2.2

2.4

2.3

2.2

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

Market priced

5.4

6.9

6.1

6.7

5.9

7.0

6.7

8.5

6.8

8.2

Cost plus

4.0

5.6

6.1

5.8

3.7

6.2

6.9

6.8

4.8

Strategic

5.2

3.6

4.4

6.3

2.0

2.8

3.3

3.2

1.8

4.0

14.7

16.1

16.6

18.9

11.7

16.0

16.9

18.5

13.4

19.2

Market priced

0.7

0.9

0.9

0.8

1.1

1.3

1.2

1.3

1.2

1.4

Cost plus

0.8

0.8

0.8

0.9

0.9

0.8

0.8

0.8

0.8

0.7

Strategic

0.1

0.1

0.1

0.1

0.1

0.2

0.1

0.2

0.2

0.2

Total Coal shipments

1.6

1.8

1.8

1.8

2.1

2.3

2.17

2.3

2.2

2.3

P&L (USDm)

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

Sales FCA

4,077

4,640

4,394

4,573

4,939

5,567

5,499

5,030

5,270

5,359

Sales FCE

5,875

6,590

6,268

6,817

7,812

8,551

7,696

7,003

7,719

7,223

Sales LC

4,766

5,468

5,514

5,567

5,889

6,664

6,676

5,936

5,763

5,698

Sales AACIS

2,133

2,518

2,511

2,544

2,570

2,857

2,619

2,733

2,787

2,677

Sales AMDS

3,492

3,999

3,977

4,276

4,261

5,019

4,899

4,876

4,431

Sales Mining

757

1,225

1,181

1,217

1,128

1,657

1,678

1,805

1,271

1,576

Total Iron ore production


Coal:

Mining Shipments
Iron ore:

Total Iron ore shipments

7.0

Coal:

4,292

Sales Other & Elimination


Total Sales continuing operations

-3,671

-4,286

-4,102

-4296

-4415

-5189

-4853

-4934

-4538

-4347

17,429

20,154

19,743

20,698

22,184

25,126

24,214

22,449

22,703

22,478

Discontinued (Stainless Steel)


Total

17,429

20,154

19,743

20,698

22,184

25,126

24,214

22,449

22,703

22,478

0.2%

15.6%

-2.0%

4.8%

7.2%

13.3%

-3.6%

-7.3%

1.1%

-1.0%

EBITDA FCA

361

657

379

158

528

924

420

237

632

474

EBITDA FCE

460

560

452

543

471

636

367

26

130

381

EBITDA LC

480

677

603

315

480

610

438

338

437

564

EBITDA AACIS

229

417

274

215

254

462

284

238

160

120

EBITDA AMDS

57

187

126

87

127

115

48

-19

35

EBITDA Mining

324
-210

643
-332

726
-399

570
-33

607
115

835

842

779

478

-169

115

100

-16

1,701

2,809

2,161

1,855

2,582

3,413

2,408

1,714

1,972

2,449

-15.7%

65.1%

-23.1%

-14.2%

39.2%

32.2%

-29.4%

-28.8%

15.1%

24.2%

Depreciation & impairment FCA

210

216

213

225

221

227

227

236

225

229

Depreciation & impairment FCE

370

338

372

401

365

391

473

452

358

359

Depreciation & impairment LC

257

263

264

287

270

252

253

408

281

231

Depreciation & impairment AACIS

109

109

113

123

129

121

122

145

158

158

Depreciation & impairment AMDS

53

43

43

151

43

46

40

50

40

39

Depreciation & impairment Mining

108

228

109

193

114

117

117

147

129

132

Depreciation & impairment Other & Elimination


Total D&A continuing operations

-17

-9

-18

-77

-9

10

11

Change

EBITDA Other & Elimination


Total EBITDA continuing operations
Change

Change
Operating income FCA

385
541

10

1,090

1,188

1,096

1,303

1,133

1,161

1,240

1,448

1,202

1,158

-36.1%

9.0%

-7.7%

18.9%

-13.0%

2.5%

6.8%

16.8%

-17.0%

-3.7%

151

441

166

-67

307

697

193

407

245

90

222

80

142

106

245

-106

-569

-284

-154

Operating income LC

223

414

339

28

210

358

185

-107

110

333

Operating income AACIS

120

308

161

92

125

341

162

93

-38

Operating income AMDS

144

83

-64

84

69

-109

-10

332

Operating income Mining

216

415

617

377

493

718

725

632

349

409

Operating income FCE

Operating income Other & Elimination


Total Operating Income continuing operations
Operating income Stainless
Operating income

-227

-341

-417

-110

106

-176

105

89

-26

577

1,603

1,029

398

1,431

2,252

1,168

46

663

1,101

577

1,603

1,029

398

1,431

2,252

1,168

46

663

1,101

-14.4%

177.8%

-35.8%

-61.3%

259.5%

57.4%

-48.1%

-96.1%

1341.3%

66.1%

other operating expenses FCA

other operating expenses FCE

143

56

176

other operating expenses LC

37

46

other operating expenses AACIS

other operating expenses AMDS

40

14

other operating expenses Mining

other operating expenses Other & Elimination


Total Op. Exp continuing operations

220

107

190

other operating expenses Stainless

Other operating expenses

220

107

190

Change

Margin and Ratio

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

EBITDA Margin (%)

9.8%

13.9%

10.9%

9.0%

11.6%

13.6%

9.9%

7.6%

8.7%

10.9%

Operating margin (%)

3.3%

8.0%

5.2%

1.9%

6.5%

9.0%

4.8%

0.2%

2.9%

4.9%

748

779

856

892

893

980

1,034

1,009

933

924

27

72

50

19

65

102

55

30

51

Cash cost (USD/t)


Operating margin (USD/t)

Page 12 of 16

138542950.xls.ms_office
Adjustment

CONSOLIDATED STATEMENTS OF INCOME


(USDm)
Sales

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

2005

2006

2007

2008

2009

17,429

20,154

19,743

20,698

22,184

25,126

24,214

22,449

22,703

22,478

74,159

81,325

95,868

116,595

60,876
5,566

EBITDA

1,701

2,809

2,161

1,855

2,582

3,413

2,408

1,714

1,972

2,449

14,364

14,334

18,251

23,545

- EBITDA margin %

9.8%

13.9%

10.9%

9.0%

11.6%

13.6%

9.9%

7.6%

8.7%

10.9%

19.4%

17.6%

19.0%

20.2%

9.1%

Depreciation and impairment

1,090

1,188

1,096

1,303

1,133

1,161

1,240

1,448

1,202

1,158

3,145

3,241

3,686

5,497

5,128

220

107

190

6,142

2,045

577

1,603

1,029

398

1,431

2,252

1,168

46

663

1,101

11,219

11,093

14,565

11,906

-1,607

3.3%

8.0%

5.2%

1.9%

6.5%

9.0%

4.8%

0.2%

2.9%

4.9%

15.1%

13.6%

15.2%

10.2%

-2.6%

329

50

127

Other operating expenses


Operating Income
- Operating margin %
Other income (expense) - net
Income from equity method investments

93

176

107

74

148

289

177

-14

121

429

569

858

1653

Income from equity method investments and other

93

176

107

74

148

289

177

-14

121

758

619

985

1653

58

-403

-216

-383

-1200

-1,126

-904

-392

-416

-823

-488

-1,257

-1,328

-927

-2352

-2817
-4,366

Financing income (costs) - net


Income before taxes and minority interest
Income tax expense
- Apparent tax rate %

58

267

1,563

753

-728

453

1,637

782

-193

-174

734

10,720

10,384

14,623

11,207

-361

-92

-576

-450

-166

61

154

833

-190

-219

1,403

1,654

3,038

1098

-4512

-135%

-5.9%

-76.5%

61.8%

-36.6%

3.7%

19.7%

-431.6%

109.2%

-29.8%

13.1%

15.9%

20.8%

9.8%

103.3%

628

1,655

1,329

-278

619

1,576

628

-1,026

16

953

9,317

8,730

11,585

10,109

146

40

79

16

-46

11

41

-31

-25

-6

1,483

1,488

1,482

1040

-43

588

1,576

1,313

-232

608

1,535

659

-1,001

11

959

7,834

7,242

10,103

9,069

189

Income before minority interest


Minority interest
Net income from continuing operations
Discontinued operations

52

128

38

-547

461

640

1,704

1,351

-779

1,069

1,535

659

-1,001

11

959

Weighted average common shares outstanding (in millions)


1,510

1,510

1,510

1,515

1,549

1,549

1,549

1,549

1,549

1,549

1,383

1,383

1,399

1383

1445

Diluted weighted average common shares outstanding1,573


(in millions)
1,599

1,537

1,516

1,550

1,638

1,611

1,549

1,549

1,638

1,385

1,385

1,401

1386

1446

Net income

Basic earnings per common share (USD)

0.42

1.13

0.89

-0.51

0.69

0.99

0.43

-0.65

0.01

0.62

5.66

5.24

7.22

6.56

0.08

Diluted earnings per common share (USD)

0.33

0.75

0.89

-0.51

0.69

0.93

0.19

-0.65

0.01

0.56

5.66

5.23

7.21

6.54

0.08

0.1875

0.1875

0.1875

0.1875

0.1875

0.1875

0.1875

0.1875

0.1875

0.1875

N/A

N/A

1.30

1.30

0.75

Base Dividend per share (USD)

Comments and additional information on P&L


Other income (expense) - net
Other operating expenses include resturcutirng chqrges
Income from equity method investments
Financing income (costs) - net
Income tax expense
Minority interest

Weighted average common shares outstanding (in millions)

Potential improvement for advanced model (using fact book, investor day presentations and quarterly earning release)
Financing income (costs) - net

Page 13 of 16

138542950.xls.ms_office
P&L

CASH FLOW STATEMENT


(USDm)

2010

2011

Q2 2012

Net Income

3,246

1,802

959

89

-4

-6

4,920

5,000

1,158

Other and change in working capital net of effects from acquisition

-4,483

-4,831

140

Net cash provided by (used in) operating activities - Continued

3,772

1,967

2,251

Minority interest
Depreciation

Net cash provided by (used in) operating activities - Discontinued


Net cash provided by (used in) operating activities
Purchase of property, plant and equipment (CAPEX)
Other investing activity
Net Cash used in investing activities - Continued operations
Net Cash used in investing activities - Discontinued operations

245

-190

4,017

1,777

2,251

-3,308

-4,838

-1,102

-28

1,265

309

-3,336

-3,573

-793

-102

-105

Net Cash used in investing activities - Continued operations

-3,438

-3,678

Dividends paid

-1,257

-1,194

-294

1,992

787

-1,425

-694

-125

-34

41

-532

-1,753

Proceed (payments) from payable to banks and long term debt


Effect of exchange rate changes on cash & Other financing activities
Net cash used in financing activites Continued operations
Net cash used in financing activites Discontinued operations
Net cash used in financing activites Continued operations

Page 14 of 16

-793

-48

-8

-7

-540

-1,753

138542950.xls.ms_office
CashFlow

BALANCE SHEET
(USDm)

2006

2007

2008

Non current assets

72,804

88,297

88,674

94,890 88,229

86,275

83,701

Intangible asset

10,782

15,031

16,119

17,034 14,373

14,053

13,749

Property, plant and equipment

54,696

61,994

60,755

60,385 54,344

54,251

53,170

7,326

11,272

11,800

17,471 19,512

17,971

16,782

Current assets & working capital

28,645

31,337

33,913

22,131 29,419

22,769

22,770

Inventories, trade receivables & trade payable

17,290

17,292

20,977

11,909 12,052

15,305

14,008

Other assets

5,209

5,940

5,349

4,213

4,160

3,559

3,894

Cash & cash equivalents

6,146

8,105

7,587

6,009

6,289

3,905

4,470

6,918

398

Investment & Other

2009

Assets held for sales and distribution

2010

30.12.11 30.6.12

Shareholders' equity

50,191

61,535

59,230

65,398 66,100

60,477

58,283

Group share

42,127

56,685

55,198

61,045 62,430

56,690

54,560

Non-controlling interest

8,064

4,850

4,032

3,670

3,787

3,723

Non current liabilities

37,415

39,881

43,098

38,769 34,081

37,579

35,060

Interest bearing liabilities

21,645

22,085

25,667

20,677 19,292

23,634

21,689

Provision and other

15,770

17,796

17,431

18,092 14,789

13,945

13,371

Current liabilities (excluding trade payable)

12,854 17,467

4,353

13,843

18,218

20,259

10,988

13,128

Interest bearing liabilities

4,922

8,542

8,409

4,135

6,716

2,784

4,794

Other

8,921

9,676

11,850

8,719

8,714

8,204

8,334

2,037

Liabilites held for distribution

Invested Capital (Intang assets+PPE+OWC)

82,768

94,317

97,851

89,328 80,769

83,609

80,927

Net financial debt

20,421

22,522

26,489

18,803 19,719

22,513

22,013

Comments and additional information on balance sheet


Non Current Asset

(i) Intangible asset to remain stable expect acquisition and impairment test
(ii) Property, plant and equipment to increase with CAPEX and acquisition (consolidated) but decrease with
depreciation
(iii) Investments to increase with acquisition

Current assets & working capital

(i) Inventories, trade receivables & trade payable (WCR) to evolve with change of turnover and cost of good sold
(as reported in cash-flow statement)
(ii) Cash & cash equivalent to evolve according to cash-flow statement and to remain balanced with gross debt
(cost optimization versus liquidity)

Shareholders' equity

(i) Group share to increase with net earning & capital increase and to be reduced by dividend & capital reduction
(ii) Minority interests to increase with net earning and increasing value of consolidated asset not fully owned

Non current liabilities

(i) Interest bearing liabilities to evolve according to cash-flow statement and to remain balanced with gross debt
(cost optimization versus liquidity)
(ii) Provision and other mainly related to pension and employee benefit to evolve with number of employee
and average age and performance of assets at defined benefit plans

Potential improvement for advanced model (using fact book, investor day presentations and quarterly earning release)
Balance sheet

(i) Quarterly balance sheet can be added to model for improving monitoring and estimation
(ii) Balance sheet model can be significantly more detailed for improving monitoring and estimation

Inventories, trade receivables & trade payable

(i) Inventories, trade receivables & trade payable can be details for improving monitoring and estimation

Provision & Other

(i) Pension and employee benefits provisions can be significantly more detailed for improving monitoring and
estimation

Page 15 of 16

138542950.xls.ms_office
Balance Sheet

FINANCIAL AND MARKET RATIO


2006

2007

2008

2009

2010

2011

EBITDA Margin (%)

17.6%

19.0%

20.2%

9.1%

10.9%

10.8%

Operating margin (%)

13.6%

15.2%

10.2%

-2.6%

4.6%

5.2%

Financial ratios

Net margin (%)

8.9%

10.5%

7.8%

0.3%

4.2%

1.9%

11.5%

16.0%

11.8%

11.5%

4.8%

2.1%

Cash cost (USD/t)

606

711

915

778

818

978

Operating margin (USD/t)

100

133

117

-23

42

57

Turnover / Invested capital (x)

0.98

1.02

1.19

0.68

0.97

1.12

ROIC (Operating income / Invested capital) (%)

13.4%

15.4%

12.2%

-1.8%

4.5%

5.9%

ROIC post tax (%)

11.3%

12.2%

11.0%

0.1%

8.0%

3.9%

RoE (%)

17.2%

17.8%

16.4%

0.3%

5.2%

3.2%

41%

37%

45%

29%

30%

37%

1.4

1.2

1.1

3.4

2.3

2.2

29%

18%

50%

36%

34%

43%

Cash-flow from operation margin (%)

Gearing (%)
Net Debt / EBITDA (x)
Net Debt / EV (%)
Market ratios

2006

2007

2008

2009

2010

2011

Average and recent price (USD/share)

35.45

77.35

24.59

31.80

35.79

28.24

Market capitalization (USDm)

49,027

108,213

34,008

45,951

54,114

43,744

Enterprise Value (USDm)

70,186

124,313

52,729

51,636

57,991

52,073

30.42

40.46

39.83

42.22

39.02

35.19

EPS reported (USD)

5.24

7.22

6.56

0.08

1.93

1.46

EPS diluted (USD)

5.23

7.21

6.54

0.08

1.72

1.19

Cash-flow from operation per share (USD)

6.75

10.98

9.90

4.85

2.36

1.22

Base dividend (USD)

n/a

1.30

1.30

0.75

0.75

0.19

Base dividend payout on n-1 (%)

n/a

25%

18%

11%

938%

11%

Book value par share (USD)

P/BV (x)

1.17

1.91

0.62

0.75

0.92

0.80

P/E (x)

6.8

10.7

3.8

397.5

20.8

23.7

P/CFPS (x)

5.3

7.0

2.5

6.6

15.2

23.1

EV/Sales (x)

0.86

1.30

0.45

0.85

0.74

0.55

EV/IC (x)

0.85

1.32

0.54

0.58

0.72

0.62

EV/EBITDA (x)

4.90

6.81

2.24

9.28

6.80

5.15

n/a

1.7%

5.3%

2.4%

2.1%

0.7%

Net yield (%)

Potential improvement for advanced model


Valuation model

(i) Other multiples can be added to model (EV/EBIT, REP, EVA, MVA)
(ii) Other valuation methodology can be added to model (DCF)

Page 16 of 16

138542950.xls.ms_office
Multiples