Annual Financial Results for the 12 months ended 31 December 2007 ArcelorMittal South Africa Limited

2 Introducing New CEO and member of the Board Me. Nku Nyembezi-Heita

3 Introducing new President and member of the Board Luc Bonte

Market and Operations Rick Reato

5 Introduction and Overview  Earnings increase to R5.7bn  Earnings per share of 1 288c up 21%  Net cash flow of R2.9bn  Domestic market retained momentum  Demand essentially unchanged on 2006  Domestic sales constitute 76% of total sales  Cost pressures continue  Raw material cost increased by 14%  Cost of steel sales increased 17%  Operations  BFD rebuild completed  Liquid steel production down 10%  Sales down 6% Earnings increase by 21%

6 Key Result Drivers Production volumes impacted on sales volumes HRC US$ export price+22% LCWR US$ export price+26% Total sales volume-6% Export sales volume-22% Domestic sales volume+1% HRC Rand cash cost per tonne+18% Billet Rand cash cost per tonne+16% Labour productivity-3% ZAR movement-4% 2007 vs 2006

7 Global Environment – General Market Trends  World economic growth in 2007 decreased marginally from 3.9% to 3.6%  Chinese economy grew by 11% despite measures to cool it down  World consumption and production of steel increased by 7.5% in 2007  Global steel industry consolidation still priority  Input costs remain high & will continue to support prices  Lower price volatility expected to continue Global steel consolidation supports a less volatile market environment

8 Global Environment - Chinese Market Trends  China remained a net exporter of total steel products in 2007  China accounted for 37% of world steel production and 35% of consumption  Export taxes increased ExportImport ktonnes Net China expected to retain its status as a net exporter Source : TEX Report

9 Global Environment – Input Cost Trends  Iron ore price expected to increase substantially  China iron ore premium of US$40/t  Coking Coal cost pressure expected in 2008 due to scarcity worldwide  Coking coal spot prices have increase by 65%  Sharp increase in scrap prices in early 2008  Scrap prices increased by 30% during 2007  Reduction in supply from traditional markets due to local consumption  Port delays & changing trade patterns lead to rising freight rates  Freight rates almost doubled during 2007  Prices of base metals and alloys increased substantially  Tin (+66%); Nickel (+55%); Ferro Alloys (+60%); Zinc stable after +146% in 2006 Raw material prices exert pressure on steel prices

10 Global Environment – Benchmark Prices Global input costs continue to increase Based to 100

11 Global Environment - Export Prices Achieved HRCLow carbon wire rod Export prices (c&f) US$/t Steel prices established new trading range

12 Domestic Environment – Shipments Flat (t)Long (t) Long steel local despatches again achieved a record level Source : SAISI

13 Domestic Environment – Inventory Levels Stocks (t)Week’s despatches Industry inventory levels below recent averages Source : SAISI

14 Domestic Environment – Imports Imports (t)% of consumption Imports slightly down from 2006 Source : SAISI

15 Key Performance Indicators Productivity influenced by lower volume Employees per million tonnes produced Revenue per head (R000) HRC cash cost- R/t US$/t Billet cash cost- R/t US$/t Percentage value-add exports- flat96%97% - long94%100%

16 Liquid Steel Production ktonnes Blast furnace rebuild and Corex reduced output volumes

17 Liquid Steel Production BFD biggest impact on output volumes 2006 liquid steel output7 055 Recoupment of 2006 losses+323 Vanderbijlpark - BFD Rebuild-813 Vanderbijlpark - BFD Cold hearth conditions-177 Saldanha - Corex condition-49 Newcastle - Furnace condition-57 Efficiency improvements liquid steel output ktonne

18 Operational developments  Blast Furnace D  Market Coke production at battery N2 at Newcastle Works  Galvanizing line 5 achieved full capacity  Colour coating line achieved record output  EAF at Vereeniging produced record volume  Various records at all rolling mills at Newcastle Blast Furnace D overshadowed production

19 Shipment Volumes ktonnes ExportDomestic Flat ProductsLong Products Total Substantial shift to meet local demand on long products

20 Geographic Shipments Maintain Africa focus

21 Investment Programme Furnace refurbishment absorbed 30% of total cash flow expenditure Rm2007 Major projects completed (and ongoing) in 2007 Vanderbijlpark Works Blast furnace “D” rebuild completed - New direct reduction kilns 5 & 6 on track (2008) Saldanha Works Corex/Midrex reline preparation - Ore screen & stockhouse upgrade Newcastle Works Evaporator crystalliser & RO plant upgrade - Blast Furnace “N5” Mini-reline (2008) Vereeniging Works 50 - EAF Dust extraction (2008) - Crane replacement and gantry upgrade at Steelmaking (2008) Coke & Chemicals 59 - Battery rebuild (Newcastle) Other (mainly Mozambique) 97 Total Expenditure in

22 Safety Remains our Priority  ArcelorMittal South Africa achieved 26 LTI free days (3.7m LTI free man hours)  1m LTI free hours achieved  7x at Vanderbijlpark Works  6x at Newcastle Works  1x at Vereeniging Works  1x at Saldanha Works  Best ever safety performance by Newcastle Works Best ever safety performance *Includes contractors IISI Lost Time Injury Frequency Rate (LTIFR)* ArcelorMittal South Africa

Finance Kobus Verster

24 Headline Earnings Record earnings Revenue Operating profit Gains & losses on foreign exchange rates and financial instruments Financing cost- net interest income imputed interest on non-current provisions Income from investments74 Tax Equity earnings* Net deficit on disposal or scrapping of assets*3425 Headline earnings in US$m Rm *After tax

25 Headline Earnings Trend Rm Earnings remains within ‘new’ range

26 Operating Profit Long products and Coke & Chemicals continue to increase their contribution Flat products Long products Coke & Chemicals Corporate & other Operating profit Rm

27 Cash Flow Cash flow remains robust Cash profits from operations Working capital Capex Net interest/Investment income Investments-16 Tax Dividends Net cash flow Capital reduction Net cash flow after capital reduction Net cash Rm

28 Financial Ratios Improvement in financial ratios Operating margin24%26% EBITDA margin28%30% Revenue / invested capital (times) Return on equity22%26% Net cash/equity33%19%

29 Period 2003 to 2007 Average Dividend Yield at 5.7% (excl cap red) - double the market Average Price Earnings ratio of 7.2X - half the market Share Performance Excellent medium to long term share performance

30 Dividend  Dividend policy  Distributing one third of headline earnings  Dividend and cash declared  Interim dividend of 233 cents per share - 3 September 2007  Final dividend of 196 cents per share - 17 March 2008  Total dividend of 429 cents covered 3 times by EPS of cents  Capital reduction of cents - September & October 2007  Total cash distribution of cents over past twelve months Cash yield at 13.6%

Other Developments Rick Reato

32 Meeting local demand  Channels for capturing strong local demand and strong international prices  Production stability  Divert exports  N5 and Corex/Midrex relines  Investing in additional capacity  Electricity supply Focus on production stability

33 Investment Programme Investment programme support expansion strategy Relines450 Maintain capability2 000 Steel capacity increase2 900 Downstream value adding projects2 700 Environmental investments1 000 Expenditure in Expenditure in Expenditure in Rm

34 Major Investments up to 2011  Flat products  DRI kilns (2008)  Corex and Midrex reline (2008)  New Colour Line (2009)  New Galvanising line (2011)  Power plant  Ore screen and stockhouse upgrade (2009)  Long products  N5 reline (2008)  Maputo mill (2008)  New Bar/Section Mill (2011)  New Blast Furnace “N6” (2011)  New Billet Caster (2011)  Crane and gantry upgrade (2008)

35 Major Investments up to 2011  Environmental  Sinter clean gas  EAF dust extraction at Vanderbijlpark Works  EAF dust extraction at Vereeniging Works  Calcium Carbide Desulphurisation at Newcastle Works  Evaporator crystallizer

36 Ongoing developments  Competition Tribunal  SARS BAA dispute  Iron ore supply  Electricity supply  BEE

37 Cost containment  Production stability  Increased throughput  Purchasing power  Efficiency improvements  Cost Control

Outlook Rick Reato

39 Outlook for Q1’08  Business environment  Domestic demand expected to remain healthy  Higher international prices expected  Higher input prices will influence production costs  Earnings  Earnings to remain strong compared to Q4’07  Power supply and the exchange rate may have an influence Earnings expected to remain strong in Q1’08

Annual Financial Results Thank you ArcelorMittal South Africa Limited