interim results for the six months ended june

interim results for the six months ended june 2005

Davinder Chugh chief executive officer

market & operations

Overview § Record half year earnings of R 3 221 m - Earnings per share of 723 c up 108% - Operating margin of 35% up 66% - Return on equity of 37% up 61% - High international steel prices - Cost increases contained § Delivering on R 9 bn capital investment programme Note: All comparisons against corresponding period in 2004 Maintaining strong performance 4

Key Result Drivers Increase in HRC US$ export price Increase in HRC Rand domestic price Export sales volume up 1 H’ 05 vs 1 H’ 04 35% 13% 6% Slowdown in domestic sales volume (7%) Increase in HRC Rand cash cost per tonne 11% Strengthening of Rand Good performance supported by cost containment 8% 5

Export Prices Mittal Steel Invoiced Prices (c&f) US$/t 700 HRC Low Carbon Wire Rod 600 500 400 300 200 100 0 1994 1995 1996 1997 1998 1999 2000 2001 Historical high prices prevailed 2002 2003 2004 2005 6

Global Market Trends § Global steel demand outstripped supply in 2004/2005 § Inventory adjustments prompted recent price slide § World economic growth is expected to remain positive § Consolidation amongst steel companies globally continues § Steelmakers’ input costs will remain high § Chinese economy still growing at high rate § In 2004, China accounted for - 30% of world steel production - 32% of world steel consumption Global steel demand driven by China 7

Chinese Market Trends § China a 320 kt net importer of finished steel products in June 2005 § China a 140 kt net exporter, incl billet & slab, in June 2005 § Government Policy - Foreign companies not allowed to control domestic mills - Steel and raw material export rebates will be gradually reduced 8

Chinese Market Trends § Domestic Industry Consolidation - 10 largest mills will account for 50% of steel output by 2010 - Aims to create two industry giants with capacity > 30 m tonnes - Government will not ‘in principle’ grant approval for new steel plants - Existing steel makers will be gradually reduced § Technology - Promote production of high end, low cost steel products - By 2010 steel mills to consume < 0. 73 tpts of coal & < 8 tpts of water Note: tpts = tonnes per tonne of steel China imposing internal regulations 9

Mittal Steel SA Geographic Sales South Africa Rest of Africa Total Africa Americas Asia Europe 1 H’ 04 2 H’ 04 1 H’ 05 Oceania 0% 10% 20% 30% 40% Africa focus continues 50% 60% 70% 80% 10

Global Input Cost Cycle 350 Coking coal - Contract Iron ore fines - Contract Based to 100 300 250 200 150 100 50 Jul 2001 Jan 2002 Jul 2002 Jan 2003 Jul 2003 Jan 2004 Jul 2004 Jan 2005 Steel prices supported by high input cost Jul 2005 11

Global Input Cost Cycle 700 Freight Rates - Spot Coke - Spot 600 Scrap - Spot Based to 100 500 400 300 200 100 0 Jul 2001 Jan 2002 Jul 2002 Jan 2003 Jul 2003 Jan 2004 New capacity taking effect Jul 2004 Jan 2005 Jul 2005 12

Global Input Cost Trends § Iron ore price increased by 71% § Metallurgical coking coal contracts settled at +120% § Freight rates slightly reduced but still at high levels § Coke prices reduced by 50% after peaking above US$400/t § Scrap prices coming down, still above long-term trend § Input material spot prices softening as new capacity starts to show § Various expansion projects to eliminate logistics chain bottlenecks Source: World Steel Dynamics Further input costs increase expected 13

Key Performance Indicators 1 H’ 04 2 H’ 04 1 H’ 05 CI savings (Rm) - incl procurement 657 396 (141) - excl procurement 519 320 86 12 072 11 416 10 755 Man hours per ton steel 3. 9 3. 7 3. 4 Revenue per head (R’ 000) 874 1 096 1 141 1 686 1 753 1 876 254 284 303 - flat 49 48 48 - long 71 77 65 Number of full-time employees HRC cash cost - R/t - US$/t Percentage value-add exports Efficiency improvements partially countered high input costs 14

Liquid Steel Production 4 000 1 H’ 04 2 H’ 04 1 H’ 05 3 500 3477 3556 3707 ’ 000 tonnes 3 000 2 500 2 000 1 500 1829 1799 1986 1 000 1085 1093 1105 500 563 664 616 0 Vanderbijlpark Saldanha Long Products Half year production record Total 15

Sales Volumes 3 500 Domestic Export 3101 3100 3033 1210 1112 1283 3 000 ’ 000 tonnes 2 500 2 000 1 500 1569 1597 1520 472 524 1 000 1099 1125 984 996 500 50 1891 390 548 593 547 350 287 333 198 306 594 910 966 353 426 557 540 1988 1750 214 1 H’ 04 2 H’ 04 1 H’ 05 Vanderbijlpark Saldanha Long Products Total Sales impacted by inventory adjustment 16

Environmental § Environmental projects > R 1 bn at different stages Cost Rm Planned Completion § Vanderbijlpark - Zero effluent discharge (MTP) Cleaning of coke ovens gas New sinter plant off-gas system Blast Furnace D Tap floor de-dusting 222 306 210 40 2 H’ 05 1 H’ 06 2 H’ 07 Commissioned 50 1 H’ 06 231 2 H’ 04 § Newcastle - Reverse osmosis plant § Projects completed - Newcastle • Coke oven repair project Environmental projects on track 17

Other Major Projects § Investment plan of R 8 bn at different stages Cost Rm § Vanderbijlpark - Blast furnace C interim repair Blast furnace D reline 537 Blast furnace D – stoves 3 rd sinter strand 288 2 New DRI kilns 432 § Saldanha - Corex reline 310 2 H’ 05 2 H’ 06 2 H’ 07 § Newcastle - Pulverised coal injection 211 - Blast furnace N 5 reline 590 § Mittal Coke & Chemicals 40 2 H’ 06 318 2 H’ 06 2 H’ 07 Planned Completion - Market coke expansion 455 Commissioned 2 H’ 08 2 H’ 06 § Asset replacement & ongoing capex 1 280 § Other downstream projects under investigation § Other reline & value adding projects 655 1 300 18

Other Major Projects Cost Rm Planned Completion § Projects completed - Vanderbijlpark • BOF control systems 112 2 H’ 04 • Blast furnace C – throat armour repair • Blast furnace D – interim repair 139 • Sinter plant repair and upgrade (Phase 1 -3) - Saldanha • Third roll grinder 30 2 H’ 04 - Asset replacement & ongoing capex 502 - Other reline & value adding projects 626 23 2 H’ 04 42 Strong investment programme 1 H’ 04 2 H’ 04 19

finance

Headline Earnings Rm 1 H’ 04 2 H’ 04 1 H’ 05 10 544 12 509 12 264 2 948 4 451 4 347 (14) 50 83 (133)# (37) (30) (914) (1 551) (1 329) Equity earnings* 179 79 153 Minority interest (4) (2) (3) 2 062 2 990 3 221 311 482 521 2 990 3 221 Revenue Comparable operating profit Financing cost - net interest (expense)/income - long-term provision top-up Tax Comparable earnings - in US$m BAA remuneration* (511) Headline earnings 1 551 * After tax # Lower discount rate accounts for R 100 m Record earnings 21

Comparable Headline Earnings Trend 1 750 1578 1575 1 500 1415 1393 1 250 1643 Rm 1 000 750 657 500 596 669 4 Q’ 03 1 Q’ 04 352 250 0 655 1 Q’ 03 2 Q’ 03 3 Q’ 03 2 Q’ 04 3 Q’ 04 Earnings level maintained 4 Q’ 04 1 Q’ 05 22

Operating Profit Rm 1 H’ 04 2 H’ 04 1 H’ 05 Vanderbijlpark 1 840 2 289 2 332 Saldanha Steel 348 799 685 Long products 640 1 129 1 195 Coke and chemicals 161 301 159 18 24 12 (59) (91) (36) 2 948 4 451 4 347 Other Corporate Comparable operating profit BAA remuneration Operating profit (731) 2 217 Strong performance from all units 23

Cash Flow Rm 1 H’ 04 2 H’ 04 1 H’ 05 Cash profits from operations 3 465 5 112 4 971 (1 069) (341) (930) Working capital BAA remuneration Capex (731) (405) (849) (493) (22) 58 75 Tax (273) (613) (1 508) Dividends (334) (5) (1 783) Net cash flow 1 362 2 631 332 Net cash position 1 369 3 973 4 280 Finance cost Substantial tax & dividend payments 24

Working Capital Rm 1 H’ 04 2 H’ 04 1 H’ 05 14 (302) (791) (1 214) 86 (175) 131 (125) 36 (1 069) (341) (930) Inventories Debtors Creditors Total WIP inventory building for reline 25

Financial Ratios 1 H’ 04 2 H’ 04 1 H’ 05 21 36 35 28 36 35 26 39 40 33 39 40 Revenue/invested capital (times) 1. 4 1. 7 1. 5 Return on equity (%) 23 40 37 30 40 37 9. 7 24. 8 22. 6 Operating margin (%) - on comparative basis (%)* EBITDA margin (%) - on comparative basis (%)* Net cash/equity (%) * Adjusted for once-off items Sound business performance 26

Share Performance 350 Mittal Steel SA All Share 300 Top 40 Based to 100 250 200 150 100 50 0 2002 2003 2004 2005 Source: I-Net Bridge Good investment case 27

Dividend § Dividend policy - Distributing one third of headline earnings § Dividend declared - Interim dividend of 240 cents per share -12 September 2005 28

investment case

Strategy Update § 2 Mtpa throughput strategy - Several projects at EIA stage § US$50/t Cost reduction strategy - Newcastle PCI project exceeding expectations § Africa strategy - 90% Africa focus inline with development plans of SA Govt & NEPAD Strategy gaining momentum 30

Contribution to the Economy § R 9 bn capital investment programme § US$704 m gross export revenue § Contribution to the state treasury of R 1. 6 bn § Procurement from affirmative business enterprises of R 805 m § Refocused social investment on science & technology education - Scitech exhibition (attendance 38 000 learners) - Mittal National Science Olympiad (participation 10 000 learners) Supporting economic growth 31

Outlook for 3 Q’ 05 § Business environment - Local demand expected to improve by up to 5% - Lower local and international steel prices - Inventory cycle completed, off-take to improve - Higher input prices will influence production costs - Exchange rate will have an important influence § Earnings - Earnings to remain robust, but materially lower compared to 2 Q’ 05 Softer trading conditions expected 32

Mittal Steel Company NV § The world’s largest & most global steel producer - Revenues of over US$32 bn* - Shipments of 69 Mt* - 14 operations on four continents - 164 000 employees over 45 nationalities - Major supplier to all steel consuming sectors - Technology leadership with major R&D centres - Significant vertical integration - Unrivalled acquisition & turnaround experience - Ranked 253 rd ito revenues & 55 th ito profits (Fortune 500) *Pro-forma 2005 Shaping the future of steel 33

interim results for the six months ended june 2005