Published in June 2016.

РJSC “ArcelorMittal Kryvyi Rih” 50095, Ukraine, Dnepropetrovsk region, Kryviy Rih, Ordzhonikidze st., 1

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ArcelorMittal Kryvyi Rih Sustainability Report – 2015 2 Sustainability Report 2015 2015 ArcelorMittal Kryvyi Rih

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 3 ArcelorMittal Kryvyi Rih Sustainability Report – 2015 4 Content

1 About ArcelorMittal

2 Message from CEO

3 Sustainable development through 10 outcomes

4 Our progress in 2015

5 Safe, healthy, quality working lives for our people

6 Products that accelerate more sustainable lifestyles

7 Products that create sustainable infrastructure

8 Efficient use of resources and high recycling rates

9 Trusted user of air, land and water

10 Responsible energy user that helps create a lower carbon future

11 Supply chains that our customers trust

12 Active and welcomed member of the community

13 Pipeline of talented scientists and engineers for tomorrow

14 Our contribution to society measured, shared and valued

15 Transparent good governance

16 Performance at a glance

17 About this report

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 5 114 million tonnes is ArcelorMittal Group’s total annual steel production capacity in 2015

84,6 million tonnes total steel shipment in 2015

$227 million is the amount the ArcelorMittal Group invested in research and development in 2015 About ArcelorMittal ArcelorMittal is a leading mining and steel company and a steel producer in the world with achievable production capacity of approximately 114 million tonnes of crude steel per year. ArcelorMittal with more than 209 thousand employees operates in 60 countries and has industrial presence in 19 countries, has leading positions in key steel markets in the world, including automotive, construction, household appliances and packaging. Sustainable development, ArcelorMittal is active quality, leadership in researches of new are core values of technologies and ArcelorMittal. They solutions at 12 big R&Ds determine general worldwide helping to strategy of long-term make steel production development of the more sustainable and company. Safety is a top environment friendly, priority of every unit of improving energy efficiency ArcelorMittal Group and and reducing environment its aim is to become the footprint. safest world’s steel and mining company. More detailed information about ArcelorMittal you can find at corporate.arcelormittal.com About PJSC ArcelorMittal Kryvyi Rih PJSC ArcelorMittal Kryvyi Rih is part of the international company ArcelorMittal and one of the leaders among the largest enterprises of Mining and Steel Complex of Ukraine.

PJSC ArcelorMittal Kryvyi Rih is a full-cycle steel plant, which consists of the coke and by-product plant, ore mining (open pits and underground ore mining) and steel production which includes sinter and blast furnace, steelmaking and rolling departments.

The company specializes in manufacturing of long rolled steel – reinforcing bars and wire rod of common and alloyed grades, and wire rod, bars and sections of low alloyed as well as special purpose steel grades.

PJSC ArcelorMittal Kryvyi Rih is the largest exporter in Ukraine.

Performance 2015, million tonnes 2015 2014 2013 Iron ore 24,5 25,1 25,5 Coke moisture 1,9 1,7 1,4 6% Concentrate 10,1 9,9 10,2 Sinter 9,8 9,8 10,2 Hot metal 5,5 5,5 5,6 Crude steel 6,3* 6,3 6,4 Rolled product 5,3 5,6 5,7

ArcelorMittal Sustainability Report – 2015 8 27 139 employees of PJSC ArcelorMittal Kryvyi Rih

6.3* million tonnes of steel produced in 2015

67 Countries of the world where our products are supplied to Message from CEO Paramjit Kahlon

CEO of ArcelorMittal Kryvyi Rih

Dear readers, Our employees were and remain our main value. Average salary rate at ArcelorMittal Kryvyi Rih is one of the highest among top mining and steel companies in Ukraine and We are one of the steel leaders in Ukraine and a part of steel we provide our people one of the best social package in producer number one worldwide. ArcelorMittal’s sustainable mining and steel industry, professional and career growth development concept published in 2015 establishes goals opportunities, training at ArcelorMittal University. for our business and widens initiatives being implemented in We have implemented some of key investment environment the group in environment, social and economical areas. This friendly projects: overhaul of BF6 and reconstruction of concept is an integral part of activity of the company and a converter # 5, reducing dust emissions by 12%. Capital key factor in development of our plant. We believe that we investment amounted to more than 5.1 billion hryvna. We can contribute in sustainable development of modern world will continue investments in 2016 as a part of modernization by careful use of resources, minimizing environment impact of strategy of the whole plant. our activity, improving life in the city and region we operate. In 2015 ArcelorMittal marked 10 years of operation in This report contains the review of our activity within 10 Ukraine undertaking significant commitments in environment outcomes informing our progress and achievements and and social areas, we are responsible for their fulfillment existing problems we face during the year and in future to in front of the country, this region and our employees. overcome. ArcelorMittal Group continues to be committed to work 2015 year was tough for global mining and steel industry and in Ukraine and even in tough time for global steel industry our plant. It was foremost caused by global slumping steel and the company. As one of the major tax payers in the demand due to China dumping and tough economy. country we continue to support Ukrainian economy. In 2015 ArcelorMittal Kryvyi Rih allocated more than 8.6 billion hryvna But we could withstand and even improve some of our results tax and duties to the government. comparing with 2014. We will continue to invest in our industrial operations in future First, we reduced occupational injury rate significantly to to support sustainable development of our business, our 0.35. Safety is our priority number one and we will continue employees and local community. our efforts to achieve zero injuries and accidents among our employees and contractors.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 10 Performance 2015

Iron ore: (million tonnes) Crude steel: (million tonnes) Rolled product: (million tonnes) 5.5 6.3* 5.3

2015 5.5 2015 6.3 2015 5.3

2014 5.5 2014 6.3 2014 5.6

2013 5.6 2013 6.4 2013 5.7

Lost-time injury rate - total: (per million hours worked) Environmental CAPEX: (MUAH) Social investments: (MUAH) 0.35 859.5 18.3

2015 0.35 2015 859.5 2015 18.3

2014 0.52 2014 718.4 2014 28.6

2013 0.64 2013 325.6 2013 57.8

Payments to government: CAPEX: (MUAH) (MUAH) Number of employees: total 8 645 27 139 5 167.4

2015 8 645 2015 27 139 2015 5 167.4

2014 3 792 2014 29 131 2014 2 918.2

2013 2 635 2013 29 991 2013 1 259.0

Incomes: (MUAH) 46 261.3

2015 46 261.3 * total crude steel 6.1 million tonnes and 2014 36 740.6 addition to that pig iron (176 kt equivalent to crude steel 206 kt) was produced, hence total crude steel equivalent was 6.3 million tonnes. 2013 28 251.2

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 11 ArcelorMittal has a good reputation in The all who review our reports published since 2010, are aware that our approach to the corporate responsibility terms of corporate responsibility, and is based on the four aspects: investments in our people, since coming to Ukraine we have made production of sustainable steel, development of local great contribution to the development of communities and transparent management. local communities, actively interacting At the same time, in the world there are global processes caused by the climate changes, the reduction of resources, with all stakeholders and maintaining demographic problems and environmental problems. If not an open dialogue with them. managed, these factors create certain risks for such major companies as ArcelorMittal namely for business operations and profit, reputation and social credibility. But they can also be great opportunities for further development.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 12 Sustainability Concept We need to find the solutions that will help our company and the world to be safer, stronger and more sustainable. We need the approach that will help to avoid the risks and destructions for our operations and to create the considerable value for our partners today and in the future.

Our 10 goals are the basis of our sustainability concept and all the efforts will be focused on their achievement in order to fulfill our long-term obligations.

1. People. Safe, healthy, quality 9. Scientists and engineers. Pipeline working lives for our people of talented scientists and engineers for 2. Products that accelerate more tomorrow sustainable lifestyles 10. Impact measurement. Our 3. Infrastructure. Products that create contribution to society measured, sustainable infrastructure shared and valued 4. Resources. Efficient use of All underpinned by transparent good resources and high recycling rates governance 5. Air, land and water. Trusted user of air, land and water We shall determine the indicators for 6. Energy and carbon. Responsible each goal and estimate the progress energy user that helps create a lower by informing our readers in the annual carbon future reports about the way we produce steel 7. Supply chains that our customers and how we use resources and support trust our people and our communities. 8. Community. Active and welcomed member of the community

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 13 People. Safe, healthy, 01 quality working lives for our people We aim to make our production site the safest working place not only for our employees, but also for contractors. We want them to be sure that they are appreciated and respected. Our success is based on our people’s commitment and support, and we want each employee to have the opportunity to develop the potential and to move forward. We aim to create the positive working culture based on the safe operation, respect of human dignity and rights in order to involve, develop and retain the talented specialists. People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

Performance at a glance (see data with comments)

Metric Unit 2015 2014 Management comment Status

Lost-time injury frequency rate Per million hours 0.35 0.52 Our lost-time injury rate worked significantly improved

Lost day rate The total lost days to 4,4 5,8 Lost-day rate improved the total number of hours Unfortunately, we did Fatalities Number 2 1 not manage to prevent the 2 fatalities Our absenteeism rate Absenteeism rate % 3,37 3,57 improvement. Number of hours of training Training provided per employee Average hours 85 68 significantly increased

Strikes 1 week’s duration Number 0 0 N/A

Key: met target/improved; progress neutral; did not meet target/deteriorated

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 15 Safety

We aim to create comfort working places without operational Courageous Leadership aims at building of new culture of risks for our employees and contractors that’s why safety safe production. The trainers play the key role in learning. We is our priority #1. Our aim is zero accidents at work, rely on internal professionals instead of experienced trainers prevention injuries and hazardous situations, reducing risk of as the employees better know the operational environment occupational diseases. and concerns of their teams, moreover, the general level of credibility of their colleagues for them is higher. Their The H&S policy provides the coordination of all the task is to convince all the skeptics that zero injury rate is Company’s subdivisions activity and compliance with the possible even at the big company with a lot of hazards, and operation safety norms and requirements. Labour protection achievement of this “zero” depends on each of us. 13 678 matters are included in the collective agreement. Every year, employees were trained in 2015 including: we allocate funds for the creation of safe working conditions, 12 087 blue collars and 1 591 white collars prevention of occupational injuries and diseases. In 2015, UAH 252.0 million was invested in health and safety.

In 2015, we succeeded in the accidents frequency rate 1.6 bln UAH reduction; it made 0.35 vs. 0.52 in 2014. The number of was invested in health and accidents made 25 (31 in 2014). Unfortunately, we did not safety in 2006-2015 manage to prevent the 2 fatalities: one with the contractor’s employee in Blast Furnace Shop No.1 and one with employee of our plant at iron ore underground mining.

Most of accidents (more than 58%) happened due to 2.5 the organizational reasons. Therefore, the special focus During the 10-year of 2016 H&S activity will remain on compliance with period, the level of H&S requirements, job duties, use of personal protection occupational injuries at equipment by both employees of the Company and contractors. PJSC «ArcelorMittal Kryvyi Rih» has decreased by 2.5 To create safe environment, PJSC ArcelorMittal Kryvyi Rih. times both invests in and provides H&S comprehensive training for own employees and contractors. It also controls the compliance with the requirements, norms and rules of the occupational safety.

Achieving zero injuries first of all depends on the people themselves, starting with rules of conduct in the production to a culture of communication, habits, using personal protective equipment. We aim to make work safety a real value for each and every employee of PJSC ArcelorMittal Kryvyi Rih.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 16 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

Health of Our Employees

We consider the employees’ health to be the key for their The lost time injuries frequency rate: (per million safety, productivity and wellbeing in general. Our main goal in hours worked) this area is the occupational diseases prevention and the sick rate decrease. 2015 0.35 The actions we implement are important not only for the prevention of various types of diseases, but also for 2014 0.52 improvement of the employees’ health. 2013 0.64 Main focus:

• the employees’ knowledge improvement; The lost day rate • regular medical examinations and procedures; • health improvement and treatment. 2015 4.4

The Company holds annual Health & Safety Week aimed 2014 5.8 to draw the attention of each employee of the Company to own health. We remind them how it is important to be 2013 7.3 always responsible and mindful of own health. To preserve the health of the people, we improve the work environment, and medical specialists carry out the regular examinations and Number of occupational diseases provide qualified medical services. All our employees have the opportunity to undergo the examination and treatment in the 2015 41 Dzherelo health center, to rest in the recreation centers and rest camps of the Company, as well as to undergo the medical 2014 42 treatment in the health resorts of Ukraine. 2013 43 0.17 occupational disease rate in 2015 Absenteeism rate

2015 3.37

3.37 2014 3.57 absenteeism rate 2013 3.66

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 17 Human Resources

The employees’ involvement and satisfaction with their work We propose equal opportunities to all the candidates willing is the key to success of any company and the development to be employed by the Company. This is based on their of individuals. Our employees and young talents expect that professional competence. The existing employment system with such large company as ours they will be able to realize ensures transparency of candidates’ selection during open their professional opportunities and make their career along competition. In 2015 769 people were employed, including: with the development and training. 456 men, 313 women. Any unlawful discriminatory practice based on race, colour, gender, sexual orientation, age, religion, The system of interaction with the personnel aims to form ethnicity, national or social origin, disability or any other the team of the people sharing the same views, values basis is not tolerated for employment, payment and career and strategic goals of the Company, and to increase its development. efficiency and competitiveness, personal development of the employees, potential for their professional growth and social PJSC ArcelorMittal Kryvyi Rih provides social protection for all protection. of its employees in accordance with the collective agreement. Any significant changes in the company are carried out During the year there was natural attrition of staff related to only after the advance provision of information to trade voluntary resignation. The staff turnover rate made 2.2% union organizations. The Company administration provides information about planned reorganization to the trade Our Company is the leader in terms of the salary level and unions not later than three months since the date of decision social support among Ukrainian steelmaking companies. making in order to take actions to prevent or mitigate the Based on 2015 results, the average salary level is 7 697.5 negative consequences. As per the Labour Code of Ukraine, UAH (excluding payments under VSS program). the employees of the Company are informed about planned significant changes minimum two months before. In the reported period there were no stikes and lockouts.

The staff structure in 2015 with the breakdown by age, sex and categories Age Gender Categories

14.6 % 13.8 % 19,7% 29.8 %

70.8 %

71.6 % 80,3%

up 30 years old men blue collars women white collars 30-50 years old

over 50 years old

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 18 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

the year there is discussion of the results and assessment of employee’s performance and potential. The results achieved The war conflict in the East of Ukraine has negative impact by the program participants determine the possibilities on all the areas: economy, industry and causes social and of their carrier growth, change of remuneration level and humanitarian problems, thus influencing the psychological participation in international training and experience sharing state of people. projects. In 2015, 752 employees (3% of the total headcount of the Company), including 62% - men and 38% - women, In 2014-2015, more than 530 employees were mobilized to participated in GEDP cycle. participate in the anti-terrorist operation (ATO) in the East of Ukraine. PJSC ArcelorMittal Kryvyi Rih implemented programs to support employees mobilized for military service, their Climate Survey Speak Up 2015 families and children. Employees’ support and engagement are important for Workers who returned from ATO zone and set to work are successful development of the Company. Every two provided with required social and psychological assistance. year we have climate survey that allows to define the More than 280 employees have received psychological level of engagement and loyalty and to identify the counseling. We also provided trainings for specialists of the evolving problems. We had the same survey in 2013. This enterprise, who will directly work with demobilized soldiers. survey covers the main aspects of Company’s activity, The trainings were attended by 88 chiefs of shops and including H&S, professional development, communication, foremen. Participants discussed the post-traumatic stress remuneration and benefits, values, etc. 1 252 employees disorder, its symptoms, and the technique to cope with participated in the survey. The survey showed that irritation and anger. employees’ satisfaction level increased by 2% vs. 2013 results and made 77% (75% in 2013). In 2014-2015, 16 employees of the Company were killed and 24 were injured in ATO. The company is committed to Knowledge is the intellectual capital of the employees that support the families of deceased employees. Each family of forms the foundation for their growth and success. What is the deceased had been provided with financial assistance important for successful carrier in modern business is not only amounting to 50 thousand UAH. professional competences, but also knowledge and skills in related areas that allow to have a better view on the tasks to The Foundation of PJSC ArcelorMittal Kryvyi Rih, created to be performed and processes arrangement. Such opportunities support the families of employees killed or wounded during are provided by ArcelorMittal University Ukraine. the fighting in the east of Ukraine, allocated budget to assist In 2015, there were more than 200 short-term training 13 minors in age from 1 to 16 years, and 12 families of courses in different areas, including the training for wounded employees. authorization to perform high hazardous job that is required by H&S legislation of Ukraine. Moreover, there are trainings for more than 400 blue-collar jobs. Personnel Training and Development English school Speak Up for 160 employees of the Company was started at ArcelorMittal University Ukraine in 2015. We are sure that professional team is one of the attributes of The training program was adjusted in compliance with the competitive company. objectives of corporate training and the needs of each trainee. The program complexity met the level of particular Global Employee Development Program (GEDP) is aimed to student. 38 employees passed “Technical English” training. develop employees following the strategy of the Company. Individual objectives agreed by the management are set for each participant of the program every year. At the end of

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 19 Learning Week “Learning – our key to success”

The second Learning Week was held at PJSC ArcelorMittal Kryvyi Rih in ArcelorMittal University Ukraine in June 2015 with more than 640 participants. Informal intellectual conference Pecha-Kucha, a simple presentation format where you show 20 images, each for 20 seconds, was held during the Learning Week. The conference with more than 350 participants on the subject “Lifelong Learning” included presentations and interesting ideas about how we can evolve during the whole life. There were 14 speakers, including employees, participants of many projects, activists, and youth leaders, as well as heads of the departments.

ArcelorMittal University Ukraine has close cooperation with public organizations of the city. In 2015, there were 16 activities, involving 1 131 people.

8.2 MUAH Investments in personnel training in 2015

2 341 013 the total number of academic hours

85 the average number of academic hours per employee

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 20 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

Products that accelerate 02 more sustainable lifestyles

Steel is the fabric of life, a key element of the high technologies and solutions satisfying the daily needs of the society that will remain important in future as well. None of the other materials has such a unique combination of strength, usability, flexibility and multifunctionality of utilization. We want our steel to be the main material for public authorities, commissions responsible for selection and approval of construction projects as well as for companies that design and build, because they know that the steel is an integral circular “green” economy, rather than part of the problem.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 21 We are working on the improvement of the product quality and interaction with the consumers. While Rating first among the “Ukrainian exporters producing steel products, we pay special attention according to the Forbes to the environmental safety of the product. The Ukraine following the results corporate quality management system that meets of the major Ukrainian the requirements of the international standard companies operation in the ISO 9001:2008 developed by the Technical first half of 2015” Committee of the International Organization for Standardization, is in place at the Company.

Our product is unique in the industry and we are aiming to have better service for our clients and focus on our consumers. This is the key to our current and future success. Rolled metal products, manufactured at PJSC ArcelorMittal Kryvyi Rih is 5.4 million tonnes sales of used in all the world’s climatic zones. The most steel products of important facilities with the requirement of special PJSC ArcelorMittal reliability, such as bridges, residential buildings, Kryvyi Rih state-of-the-art skyscrapers, are constructed with the use of our steel products, and this proves its exceptional strength properties. We aim to better serve our customers and consumers. This is the key to our current and future success. The share of export sales amounted to 87%. In addition to the major markets we have developed new markets and increased sales in Europe, North and South America, Saudi Arabia.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 22 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

Infrastructure. Products 03 that create sustainable infrastructure

PJSC ArcelorMittal Kryvyi Rih, as well as other Ukrainian steel companies, recently faced a wide range of problems, both external and internal.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 23 On the one hand it is the challenges of the global crisis, particularly the fall in prices and demand for steel products and increased competition. On the other hand - the conflict in eastern Ukraine, which disrupted many businesses, and the critical state of the Ukrainian economy, have led to a decline of production in mechanical engineering and other industries. In addition, a significant reduction in construction activity and the absence of large infrastructure projects have led to a significant decrease in demand for steel products and the impact on sales of PJSC ArcelorMittal Kryvyi Rih on the domestic market.

The share of shipments to the Ukrainian market amounted to 13 % of the total volumes in 2015. But we are ready to partner with the government in developing the country’s infrastructure and construction activity.

The Company maintains the reputation of a reliable partner for the clients and ensures the meeting of the requirements to steel products quality and the creation of the up-to-date level of service. The Company invests in the development of internal distribution network and the expansion of sales network. In 2015, the new steel product warehouse was opened in Kharkiv that enables the Company to improve regional sales network due to direct contacts with consumers and to reduce the time of steel product delivery to the customers.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 24 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

Resources. Efficient use of 04 resources and high recycling rates

Natural resources - land, water, air are required for our daily lives. Using of raw materials extracted from the Earth is a vital part of humanity, and the basis of modern society. At the same time, population growth, industrialization and globalization processes lead to a steady reduction of raw materials and increase their value.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 25 The main raw material used in the production of steel is iron ore, coal, limestone and recyclable metal materials. Iron ore is the key raw material required for steel production, because it has high iron content - that is the main component. But iron ore mining and steel production significantly affect the environment due to formation and accumulation of large amounts of waste. Our stakeholders expect us to be more responsible in terms of resources usage and waste management.

Performance at a glance

Metric Unit 2015 2014 Management comment Status

Scrap recycled million tonnes 1.8 1.9

CO avoided from 2,3 2,4 2 million tonnes scrap recycling Production residues and by- % 51 52 products re-use (total) BF Slag re-used million tonnes 1.1 0.9 – of which BF slag sold to cement million tonnes 0.7 0.8

CO2 avoided from slag used in cement million tonnes 0.5 0.6

Key: met target/improved; progress neutral; did not meet target/deteriorated

Our experts apply new technologies to reduce the consumption of non-renewable natural resources through use of alternative fuels. For example, biofuels is a significant alternative to natural gas that allows not only to reduce the cost for purchasing of expensive fuel, but also reduce the impact on the environment, as it is a part of renewable energy.

More information on the use of biofuels you can find on page 36 in the “Energy” section.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 26 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

The enterprise generates a large amount of waste. Waste recycling is an important factor for sustainable steel 16.0 million production. Recyclability is perhaps the most outstanding property of the steel. Even at the end of its lifecycle, it does tonnes not lose its properties and is ideal for processing. Every year of waste reuse about 500 million tonnes of scrap waste are used in the production of new steel products. It exceeds the total volume of recyclable materials, including paper, plastic, glass, copper, lead and aluminum.

The process wastes make 94-95% of the total volume of waste formation at the Company. They include: overburden 31.2 million rocks from the Ore Beneficiation Plant, waste rocks from Mining, mill tailings, metallurgical production waste materials tonnes (steelmaking and blast furnace slag), slurry and primary and the volume of waste secondary scale. The using of these wastes as secondary formation was made in material resources helps to save raw materials, to prevent 2015 contamination of water, soil, air.

For example, waste rock and tailings are used for construction and recultivation. In 2015, the volume of re-use totaled 10.8 million tonnes and 1.3 million tonnes respectively.

Blast furnace slag is widely used in construction and its main consumer is the cement industry. 719.5 thousand tonnes of blast furnace slag were sold to cement plants. 51% of total waste generation was recycled in 2015.

Our specialists are looking for the new ways of wastes recycling in our Company and also for the reduction of wastes formation and disposal without using additional land resources. The company reduces the volume of waste disposal by using it in the process, sells it to other enterprises and companies.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 27 Case: Steelmaking slag utilization in agriculture

The new project for the steelmaking slag utilization in agriculture as the fertilizer (ameliorant) for sour land deoxidation and increasing of the yield level of the various crops was launched in 2015. The most common ameliorant is the lime, but it is much more expensive than steelmaking slag thus, it is an excellent alternative for the agricultural business. As for the Company, utilization of steelmaking slag will solve the issue of slag dumps processing.

The team of experts from technical and marketing departments is working on the development of the project, which is unique in Ukraine. The European best practice concerning steelmaking slag utilization in agriculture was analyzed. This practice is now used for the fields in England, France and Germany.

Volynska and Kharkiv regions were selected as the experimental areas due to a relatively low acid-alkaline balance (pH) of the land there. Three state scientific institutes were involved in the research, and they confirmed that the steelmaking slag from PJSC «ArcelorMittal Kryvyi Rih» used as the ameliorant for the sour land deoxidation was efficient and at the same time eversafe for the environment including the animals. The presence of high content of calcium oxide, phosphorous, potassium, sodium and other elements in the ameliorant creates the additional value vs. lime as, being microelements, these compounds have a positive effect both on land and growing crop.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 28 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

Air, land and water. Trusted 05 user of air, land and water

Production of steel is a resource-intensive process, and inevitably related to serious negative impact on the environment as the result of the large number of wastes during raw materials extraction, land and water pollution, and CO2 emissions. We assess this impact and should minimize it so that our stakeholders have confidence in us because we are working openly and transparently.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 29 Performance at a glance

Metric Unit 2015 2014 Management comment Status

Environmental and energy Mln UAH 859 718 Increase due to implementation of capital expenditure large-scale investment program Air *

Dust emissions kg/tonne of steel 6.0 6.7 Due to the quality of raw materials NOx (steel) kg/tonne of steel 2.1 1.4 (mainly at sinter plants)

SOx (steel) kg/tonne of steel 1.3 1.3 No change

Land

Waste generation Mln t 31.2 35.9 Reduction due to recycling

Waste disposal 16.0 17.1 Reduction due to recycling

Water

m3 water per tonne of Before 2015 we reported about Water intake (steel) 9.1 8.2 steel total water intake m3 water per tonne of Before 2015 we reported about Water net consumption (steel) 8.5 7.7 steel total water consumption

Key: met target/improved; progress neutral; did not meet target/deteriorated

*Note: ArcelorMittal reports dust, NOx and SOx emissions per tonne of steel produced as a more mean- ingful indicator than the absolute volumes generated.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 30 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

The environmental management system that meets the Category 1 capital repair of BF-6 with the requirements of the international standard ISO 14001:2004 implementation of the complex environment protection is the main tool for the environmental priorities following-up measures during the production planning, and it covers all the operation Construction of three new gas cleaning plants at stock house subdivisions of the Company. Annually, the comprehensive and cast house of Blast Furnace No.6 of Blast Furnace Shop measures are implemented at PJSC ArcelorMittal Kryvyi Rih in No.1. As the result of this measure implementation the order to decrease of the impact of the Company’s production emissions of hazardous substances from cast house of blast cycles on the environment. Environmental projects are furnace were localized, dust emissions concentration of 30 included in the program of construction and modernization of mg/m3 was reached and this is less than state standards (50 production. mg/m3). The pollutants emissions will be reduced by 7 057 t/year. PJSC ArcelorMittal Kryvyi Rih investment program till 2020 covers all key aspects of the Company’s activity: Health Construction of two modern gas cleaning plants at BOFs and Safety, Production and Environment. The main goals No.5, 6 with implementation of CO combustion in BOF Shop. of this program are to preserve volumes of production Innovative gas cleaning system allowed to reduce emissions in current market conditions; to reduce production cost of pollutants: dust by 238.312 t/year, CO by 1 544.8 t/year. by implementing energy-saving technologies; to replace obsolete equipment with the new and environment-friendly We will continue the introduction of the state-of-the-art one. technologies to reduce the Company’s operational impact on the environment. During a 10-year implementation of environmental projects we managed to considerably decrease the main environmental indicators of the Company’s operations impact on the environment: • pollutants emission to the atmosphere – by 33.3%;

• the volume of waste waters discharge - by 70.0%; 5.17 bln UAH • the volume of wastes disposed in the environment - by CAPEX in 2015 24.0%.

Annually, the comprehensive measures are implemented at PJSC ArcelorMittal Kryvyi Rih in order to decrease of the impact of the Company’s production cycles on the 19.1 bln UAH environment. CAPEX during 2006-2015

4.2 bln UAH investments in environment protection during 2006 - 2015

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 31 Air

The process of steel production is linked with the considerable pollution of the atmosphere with emissions of dust, ArcelorMittal Kryvyi Rih won greenhouse gases and other polluting substances, such as “ nitrogen oxides (NOx) and sulfur oxides (SOx). The reduction ХIV All-Ukrainian ecological of harmful emissions to the atmosphere is one of the priority competition “Ecological activities of the Company in terms of environment. We Quality and Safety” in 2015 determine the extent of potential impact of our activity on ” the air quality and we control the emissions to the atmosphere according to the legislation requirements.

Dust is one of the main after-effects of the environmental impact as the result of steel production. In 2015, dust emissions were reduced by 13.0% vs. 2014. At the same time, the increase of total emissions at the Company made 5.04%:

- there was increase in the production of own coke to compensate the cost of the imported one, which we had to purchase overseas due to the termination of raw materials supplies from the eastern regions of Ukraine. It resulted in the additional output of coke gas in the volume of 69.2 thousand m3 that was used in-house, for the needs of Coke Plant, HPPs 1 & 2 and rolling mills reheating furnaces. At the same time, it enabled to reduce the consumption of natural gas;

- SP-2 Sinter Strand No.6 was shutdown for the reconstruction under the Company modernization program. Thus, the SP-1 sinter production was increased by 4.7% to maintain the existing level of production.During the reconstruction of SP-2 Sinter Strand No.6, it is planned to replace the obsolete gas cleaning plants with the up-to-date ones that will ensure dedusting at all the process stages and following of Ukrainian and European standards for dust emissions: 50 mg/m3 and 20 mg/m3, as well as to reduce the pollutants emissions by 8.7 thousand t/y.

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ArcelorMittal Kryvyi Rih Sustainability Report – 2015 32 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

Water

Water is the main resource of the Earth, which is essential The total amount of waste waters in 2015 was 9 889 to the existence of mankind, and the implementation of any thousand m3 (10 235 thousand m3 in 2014). At the activity today and in future. The two issues related to water same time, the pollutants content in the waste waters are critical for us the volume of water used for production was increased by 15%, due to the change in qualitative and wastewater treatment, in order to reduce pollution. composition of mine waters. The chemical composition of underground/mine waters depends on the mineral structure PJSC «ArcelorMittal Kryvyi Rih» uses water almost at all of the enclosing rocks and ores through which they drain. process stages starting with iron ore extraction and up to The monitoring system of wastewater provides automatic steelmaking and equipment cooling. Rolling, blast furnace and continuous measurements of chlorides, iron, oil, suspended steelmaking processes are the most water consuming ones. solids, pH in wastewater and discharge volumes. The recirculation water system enables to reuse water used in the process before that still retains the quality indicators. The recirculated water supply enables to significantly reduce the consumption of natural water and to prevent the excessive environmental pollution. 3 The company aimed not only to reduce water consumption, 9,1 m /t but also to use it in a very efficient way. Rational water water intake 2015 in 2015 consumption at the plant is ensured with water recirculation system, which makes it possible to reuse water that has been used in the process and retained quality indicators. The use 3 of water recirculation significantly reduces the natural water 8.5 m /t flow and prevent excessive pollution. The volume of recycled steel water consumption water made 96.0% of total consumption. rate in 2015 The steelmaking process is accompanied by the formation of waste water containing various impurities and compounds. 3 For example, the sinter production generates waste waters containing ore and lime dust. BF process waters are featured 1 255.6 mln m reused water in 2015 with high alkalinity and total hardness. The rolling process waters contain coarse particles, scale and oils.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 33 Energy to reduce the carbon 06 emissions

Climate change is the most important and complex issue that popped up in the first set of global and long-term challenges of the 21st century. Among the main reasons are the use of fuel, inefficient energy consumption, increase in greenhouse gas emissions, industrial activities.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 34 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

Steel production is associated with the consumption of a significant amount of fuel, electricity and heat. Metallurgy is one of the main carbon emission sources, as nitrogen oxide and methane are generated at different stages of metallurgical process when combusting fuel in the funaces. Being one of the largest steel producers in the world, we have one of the largest corporate carbon

Performance at a glance

Management Metric Unit 2015 2014 Status comment

Total energy Primary energy consumed fell due GJ (PJ) 135,4 140,6 consumption to energy efficiency improvements. Reduction represents Energy intensity GJ/t liquid steel 20,0 20,1 real energy efficiency improvements

Total CO2e emissions million tonnes 13,5 13,2 Actual carbon intensity tonnes CO per tonne increased due to the CO emissions per tonne* 2 2,2 2,1 2 of steel higher share of blast furnace production.

Key: met target/improved; progress neutral; did not meet target/deteriorated

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 35 Steel production is the energy consuming process. Energy consumption control is one of the sustainable development 135.4 GJ (PJ) issues. It is important in terms of the energy resources cost primary energy as well. The increase of energy efficiency is one of the main consumption in 2015 targets for our Company and the whole Group.

Efficient energy use is one of the factors of sustainable development, primarily through the reduction of CO 2 20,0 GJ/t emissions. In addition, the rising cost of energy is one of liquid steel energy intensity the risks that can significantly affect the activity of the enterprise, so energy conservation is one of the key tasks of PJSC ArcelorMittal Kryviy Rih.

In 2015, we worked on switching blast furnaces #6, 7 to full coke operation that enables iron making without natural gas consumption. The implementation of this technology in 2016 In 2015, the natural gas will enable to reduce the natural gas consumption by 60 mln “ consumption was reduced m3/y. by 18.9% vs. 2014” Pulverized coal preparation and injection at BF No. 9 is being constructed in order to improve production efficiency and significantly reduce natural gas and coke consumption. Completion and commissioning of the installation is planned in 2016.

Alternative Energy Case

In view of continuous increase in natural gas costs the utilization of alternative energy sources is getting crucial for the Company. In 2014 – 2015, the pilot installation was commissioned at rotary kilns #4, 5 in refractory and lime shop to substitute partially natural gas with biofuel (sunflower seed husks). In 2015, natural gas substitution rate made 49.8% with the flow-rate of 2.3 ton of the biofuel per 1000 m3 natural gas for those kilns.

In 2016, installation of multifuel burner is scheduled for rotary kiln No.3 in the refractory and lime shop with expected level of natural gas substitution equal to 65%.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 36 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

Supply chains that our 07 customers trust

We should manage our supply chain actively and efficiently so that our stakeholders can be confident of our suppliers ethical behavior and of their activities aimed to support sustainable environmental and social standards. Our suppliers are one of the key stakeholders of PJSC ArcelorMittal Kryvyi Rih. For the successful partnership with the suppliers we aim to build the relationship based on trust and in the form of the open dialogue. We set up the Program of the responsible sourcing based on our initiatives and the best practices. Our procurement approach includes the responsible sourcing principles in the area of Health and Safety, process safety, business ethics, environment protection, and human rights. These key principles of procurement activities are as much important as the price and quality.

The Code supports the corporate policies and principles of ArcelorMittal including the Code of Business Conduct, the Policies of Human Rights, Health and Safety, Environment Protection, as well as Anti- Corruption Guidelines.

All new suppliers are subject to pre-evaluation on the basis of the filled vendors’ questionnaires following to the evaluation and approval procedure.

In 2015, 328 new suppliers (14.7% of the total number) were evaluated on the basis of the filled questionnaires.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 37 Community. Active and 08 welcomed member of the community

While working in the region, we respect the interests of the communities and take the responsibility for the impact of our activity on the stakeholders and the environment. We aim to improve the quality of life of our employees and their families as well as of the local communities and the whole society.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 38 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

The interaction with the stakeholders, both internal and external, means the development of the constructive relationships with those who are affected by us on or who are interested in our projects. We are looking for the open dialogue with all stakeholders. During the meetings with communities’ leaders we identify the priorities for the social investments taking into account the communities’ needs and the mitigation of the Company’s impact on the environment

We understand the importance of the Company participation in the local communities development and take into account the real need in joint activities focused on the social and economic protection of Kryvyi Rih residents and the solution of the social and environmental problems, thus, we annually implement the projects for the residents’ life improvement, first of all those who live in the area of the Company impact. The cooperation is based on the principles of partnership, relationships transparency and fair collaboration with the local authorities.

In 2015, following the Agreement on Cooperation between the Executive Board of Kryvyi Rih City Council and PJSC ArcelorMittal Kryvyi Rih, the Company allocated UAH 10 mln. to the reconstruction of Ordzhonikidze and Vokzalnaia streets, and the square in front of Chervonaia railway station with redirection of the traffic in Kryvyi Rih.

These streets were not selected by chance. They have intensive traffic and the great number of pedestrians. In this area, there are extensive traffic junction, bus stops, and the roads used by the employees of PJSC ArcelorMittal Kryvyi Rih to reach the Company’s check points. The funds were allocated to the capital repair of the roads paving with the replacement of the power transmission line supports, outdoor lighting lamps, installation of storm water system, new road signs and road marking. Upon the completion of the capital repair, these streets have changed drastically. Now they are comfortable and safe.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 39 Corporate volunteering

Corporate volunteering means the voluntary work of the Company employees for the benefit of the local communities. PJSC ArcelorMittal volunteers committee joins the Company employees who are ready to provide a free support to people in need. The Company volunteers organize charity concerts for children with special needs, foster children and boarding school pupils. In 2015, they organized sports and entertainment events for 300 foster children and boarding school pupils.

The company does not leave families of workers who died in the ATO. During the Christmas holidays for 13 children of employees who died in the ATO were organized two-day trip to Kiev, for the International Children’s Day - a festive program at the recreation center “Volna” in Marianivka, and entertainment in the children’s center “ Igrolife”

As a part of the Solidarity Holidays employees of ArcelorMittal can donate a week of their annual vacation to work in a community projects in a foreign country

5 employees for ArcelorMittal Kryvyi Rih participated in the 2015 edition of Solidarity Holidays. The volunteers from Kryvyi Rih travelled to Bosnia Prijedor, Brazil Jus de For a, China Changsha, Kazakhstan and London. They were engaged in community projects involving young children, construction in community, reconciling post conflict communities, managing physically challenged people and working with young children in summer camps.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 40 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

Scientists and engineers. 09 Pipeline of talented scientists and engineers for tomorrow

High-skilled specialists are the key to successful economic development of the Company and its competitiveness, especially in the STEM area (Science, Technology, Engineering and Mathematics). The demand for the specialists in these areas has been on the rise - two-times faster than for other qualifications. STEM develops the skills for research and analytical work, experimenting and critical thinking.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 41 By providing the support for the development of STEM education, we create the pool of highly professional personnel; we also facilitate the growth of the intellectual capital – the main asset of the country. We also aim to increase the level of occupational education and blue-collar jobs prestige in Ukraine. We cooperate with higher educational institutions, and provide the training opportunity for the university graduates, train and develop our employees.

«Hackathon» Everest program

Among the most popular competitions is «Hackathon» that The aim of the “Everest” program is to search for ambitious was held five times at the plant. It gathers specialists of the and talented young specialists who recently graduated from Company but university graduates and participants from universities and have a potential to build successful career in other cities of Ukraine. Each team has to generate their ideas, ArcelorMittal international company. The “Everest” program is during 24 hours and present active programming models and optimized for 2 years, during which participants are suggested products in IT and automation. a possibility to work in structural units of PJSC ArcelorMittal Kryvyi Rih as trainees with further employment in the This contest is a powerful tool for employee development. company with the plan of career development. The program The best 4 university graduates who took part in «Hackathon» suggests the participation of trainees in most important were invited for participation in the Company engineering corporate projects and also intense theoretical education projects in 2015. (on-line courses and classes). For each trainee, an individual plan of rotation within the units of PJSC ArcelorMittal Kryvyi Rih is planned, in some cases, at the international level in ArcelorMittal companies abilities and achievements of a program participant.

Upon the results of contest for graduates in 2014 - 2015, 78 participants of the “Everest” program are currently employed at PJSC ArcelorMittal Kryvyi Rih, acquiring skills in Mining, repairs, sinter and blast furnace processes, rolling and steelmaking operations, logistics, HR management and IT, automation, marketing and sales, purchasing. 56.4 % of participants are employed as FTEs at ArcelorMittal Kryvyi Rih, 34 persons continue their internship at temporary positions in the program, some of them have already got the promotion within company and their career keeps moving.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 42 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

English language school “SmartStart English with ArcelorMittal” and IT school “More than 800 children of the “SmartStart IT with ArcelorMittal for Company’s employees had the opportunity to study in employees’ children English and IT schools” In 2015 more than 800 children of the Company’s employees had the opportunity to learn in English and IT schools. Children of 6 to 17 who had not learned English and IT subjects before or their knowledge was basic participated in this free training program.

English language school “SmartStart English with ArcelorMittal”

In 2015, ArcelorMittal Kryvyi Rih opened English language school “SmartStart English with ArcelorMittal” for 528 children of the plant’s employees. The students of the free of charge courses are the children who have not studied English at all, or have basic language skills. Based on the results of specialized interviews, all pupils were divided into the small groups by age. Each group consists of 12 children, which allows conducting the learning process more effectively than in a usual school class. The lessons for children are held twice a week at ArcelorMittal University in Ukraine, Kryvyi Rih, and also in another two affiliated town campuses of the school.

IT school “SmartStart IT with ArcelorMittal”

IT school’s free of charge program is divided into two semesters of 4 months long each for 320 children. The pupils are organized into 10 groups of children in the flow. 3 groups included children from 9 to11 years old, 4 groups – 12-14 years old and 3 groups – 15-17 years old.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 43 Impact measurement. 10 Our contribution to society measured, shared and valued

The Company impact on the socio-economic development of regions through taxes, jobs, interaction with suppliers, sponsorship and charity. In addition, supporting socially important initiatives, the company is not only involved in the solution of socio-economic and environmental problems, but also improves the quality of life of people. Evaluation of the influence and contribution is essential to ensure public trust and local communities and creating a favorable environment for business development.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 44 People Products Infrastructure Resourse Air, land and water Energy Supply chains Community Scientists and engineers Impact measurement

PJSC ArcelorMittal Kryviy Rih is one of the largest taxpayers in the country and contributes significantly to the economy of Ukraine, Dnipropetrovsk region, Kryvyi 3.5 bln UAH Rih. From 2006 to 2015, the company transferred to the state more than spent for salary in 2015 UAH 29 bln of taxes and fees. It is more than 10 annual budgets of the city of Kryvyi Rih. Only in 2015, the company has paid to the budget and state trust funds of taxes and fees in the total amount of UAH 8.645 bln. Taxes and levies paid by PJSC “ArcelorMittal Kryvyi Rih” in 2015 (MUAH) “PJSC “ArcelorMittal Kryvyi Rih” 2015 2014 2013 was ranked the second by Total, the volume of tax allocations 8 645 3 792 2 635 including: among the industrial the state budget 3 923 1 021 452 enterprises in Top-100 of the municipal budgets 731 658 643 largest taxpayers of Ukraine import VAT paid at customs clearance of 2 946 1 171 628 ” imported raw materials unified social tax 1 045 942 912 We also make a significant PJSC ArcelorMittal Kryvyi Rih is one of the major employers in Ukraine. By the end contribution to the of 2015, the headcount at PJSC ArcelorMittal Kryvyi Rih made 27 139 people. development of Ukraine’s Our Company is the leader in terms of the salary level and social support among economy. We create Ukrainian steelmaking companies. Based on 2015 results, the average salary is networking and relations 7 697.5 UAH. trough sales of products and services and partnership with local contractors and suppliers.

The average salary at PJSC ArcelorMittal Kryvyi Rih In 2015 approximately 7,000 in 2015 versus average salary in Ukraine (UAH) contract employees were 7 697.5 involved in construction and repair activities of the 5 645 Company.

4 789

4 366 34.8 bln UAH spent for payments to 4 195 contractors and suppliers in 2015 PJSC ArcelorMittal Kryvyi Rih

Metallurgical enterprises of Ukraine

Industrial enterprises of Ukraine

Dnipropetrovsk region

Ukraine

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 45 Transparent good governance

High standards of business ethics and governance have been fundamental to ArcelorMittal, which operates in more than 60 countries, has more than 209,000 employees and works with thousands of suppliers and customers. Good corporate governance provides significant advantages: support reputation, strengthen relationships with government and regulatory authorities, increases the trust of customers and partners. Potential disadvantages of poor management, equally, are real and substantial criminal responsibility and significant financial penalties, to long-term reputational damage and even loss of business. That’s why business ethics and reputation are key assets that must be preserved at all times.

PJSC «ArcelorMittal Kryvyi Rih» is part of international company ArcelorMittal and adheres to the principles of transparency in all the areas of its activity. The Company aims to improve the Corporate Management System with the orientation to the corporate and global best practices.

Performance at a glance

Metric Unit 2015 2014 Management comment Status

Employees completed code of % 38,5 14,8 Active promotion of need for business conduct training compliance training Employees trained on human % 49,6 29,1 Active promotion of need for rights compliance training Security Department trained 71,8 N/A Active promotion of need for % on human rights compliance training Employees trained on anti- Active promotion of need for % 2,3 1,4 corruption compliance training

Key: met target/improved; progress neutral; did not meet target/deteriorated

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 46 Corporate Management System Human rights

The structure of PJSC «ArcelorMittal Kryvyi Rih» management ArcelorMittal always focuses on respect of human rights while doing business. General Shareholders Meeting ArcelorMittal provides mandatory training for the employees on principles of respect and rules of human rights protection Supervisory Board at workplace and in the local communities. The training is provided three times a year and it may be in class or online. Chief Executive Officer The average duration of class training is 60-90 minutes; online training takes 60 minutes. Management Committee In 2015, 13 456 employees of PJSC ArcelorMittal Kryvyi Rih The details of the Corporate Management System were given (49.6% of the headcount as of 01.01.2016) were trained on in the previous reports and available on the website human rights. During the period from 2013 to 2015, 93% of ukraine.arcelormittal.com the total number of employees was trained. Business ethics and fighting corruption In 2015, 71.86% of the total headcount of Security Department of PJSC ArcelorMittal Kryvyi Rih were trained on As the world’s leading steel and mining company, operating Human Rights Policy. During the period from 2013 to 2015, in more than 60 countries, and as a responsible and reliable 92.8% of the headcount of Security Department of PJSC business partner, ArcelorMittal focuses on compliance of their ArcelorMittal Kryvyi Rih were trained on Human Rights Policy. employees with international standards of business ethics, as well as both international and national legislation (compliance). PJSC ArcelorMittal Kryvyi Rih as a responsible employer aims to observe the human rights in compliance with the current ArcelorMittal Code of Business Conduct establishes the legislation of Ukraine. At the Company it is prohibited to use unified rules of business conduct for all AM sites, based the labor of the persons under 18 for hard and underground on ethic and legal standards. According to the Corporate work as well as for the works with hazardous or dangerous compliance program, once every three years all the Company working conditions. The employment of child is strictly employees receive Code of business conduct training and prohibited. The women employment for hard and underground commit to comply with its provisions. work (except for the works related to hoisting of people and cargos to the mine levels, mining transport control, iron ore ArcelorMittal adheres to the principle of absolute intolerance sampling, rendering of medical assistance) and the operations to any kind of corruption. Anti-Corruption Guidelines are Metric Unit 2015 2014 Management comment Status with highly harmful or dangerous working conditions, is not introduced at all AM sites. It means that ArcelorMittal allowed. The use of forced labor is strictly prohibited at the employees, who are exposed to the risk of noncompliance Company. Employees completed code of % 38,5 14,8 Active promotion of need for with anti-corruption legislation due to their position, shall business conduct training compliance training know and understand the position of the Company to prevent The Company recognizes the right of the employees Employees trained on human % 49,6 29,1 Active promotion of need for corruption and fight with it. For instance, in the purchasing for freedom of association in political parties and public rights compliance training process all ArcelorMittal plants are obliged to follow the Security Department trained 71,8 N/A Active promotion of need for organizations as well as for participation in trade unions and % procedure of open tenders. on human rights compliance training conducting of collective negotiations. PJSC ArcelorMittal Kryvyi Rih provides all the employees with equal opportunities Employees trained on anti- Active promotion of need for In 2015, 631 employees of PJSC ArcelorMittal Kryvyi Rih % 2,3 1,4 for realization of their potential at work, fair assessment corruption compliance training received Anti-corruption guidelines training. of their results and achievements, employment and career development on the basis of professional skills.

The Company also implements the programs of social support for the employees in order to ensure the social and economic rights of the employees.

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 47 Stakeholders engagement Participation in associations and unions

World needs our steel. To ensure this need, we need to ArcelorMittal is one of the largest investors seeking to support our growth strategy and stabilize relations with the contribute to the Ukrainian society and its development. communities in which we operate. Productive relationships PJSC “ArcelorMittal Kryvyi Rih” regularly participates with all the stakeholders are essential to our business. in discussions and search for solutions to the problems Creating a positive dialogue we can better understand faced by businesses in Ukraine, the plant is a member of expectation of our employees, customers, government the European Business Association, American Chamber officials and local communities. This will help to avoid of Commerce, Federation of Metallurgists of Ukraine, misunderstandings that could lead to serious disruptions in Metallurgprom Business Association. our business.

Our key stakeholders are employees, shareholders, Long-term cooperation with these organizations provides customers, government and regulatory authorities, local an opportunity to actively participate in projects related communities. Trade unions, suppliers and contractors, activity of international investors in Ukraine, to protect representatives of non-governmental organizations and the own business interests of the plant, to offer programs the media are also important for us. The stakeholders are aimed at improving the investment climate in the country. determined according to AA1000 standard of interaction with stakeholders given criteria: responsibility, influence; proximity, dependency; representation, political and strategic intentions. Thus the most important aspects to us were identified. Understanding their expectations and managing possible risks is one of the basic principles of our concept of sustainable development. The principle of open dialogue, honesty and transparency is the basis of our cooperation with all the stakeholders. For us it is important that employees and external audience could fully and promptly receive information about the activities of our plant and ArcelorMittal. We use the interaction mechanisms that meets the interests of all stakeholders: talks, round tables, conferences, public hearings; survey, focus groups and individual meetings, internal communications, website, “hot line”. Since 2011 we publish reports on the results of our work in accordance with GRI standard. Open to public, on the official website the plant posts its monthly current data on air quality in the area affected by metallurgical, coke production and mining.

Every employee and representative of the stakeholders may report orally or in writing of any violation of our rules and standards, and contact with us through the hotline. All appeals or complaints are considered according to the Law of Ukraine “On citizens’ appeals”.

Rating first among 100 Ukrainian “ companies as per the Transparency and Accountability Index in 2015 by the Center for CSR Developmentі”

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 48 About the Report

Scope, boundaries and methodology

This report is for all our stakeholders. Structured around the 10 outcomes it explains our material issues and how we manage them with the aim of having a positive impact on all our stakeholders throughout our value chain.

All data is reported for the period from 1 January to 31 December 2015. Our reporting cycle is annual.The report for 2014 was published in 2015. The report for 2016 will be published in 2017.

The previous reports highlighted our results in terms of 4 pillars of Corporate Responsibility. This year we inform about 10 sustainable development outcomes and what we need to do to achieve them. The name of the report was changed from Corporate Responsibility to Sustainable Development; the structure was built up according to each from 10 sustainable development outcomes.

The report is presented in PDF and online. You can find online report on our website HYPERLINK “http://ukraine.arcelormittal. com”ukraine.arcelormittal.com. We think that is useful, simple and practical way of communication with our stakeholders.

Reporting principles

ArcelorMittal Kryvyi Rih’s sustainable development report was prepared according to Global Reporting Initiative (GRI), 4.0.

We support the reporting principles set out in the GRI G4 guidelines. For defining report content, these are: stakeholder inclusiveness; sustainability context; materiality; and completeness. For defining report quality, these are: balance; comparability; accuracy; timeliness; clarity; and reliability.

Topics described in the report were determined according to their importance for informing stakeholders interesting in activity of ArcelorMittal Kryvyi Rih in Ukraine and ArcelorMittal Group in general. The report includes main events for the reporting period and it does not exclude any essential events and facts.

Throughout our report we identify both the challenges and the opportunities that we face, including open discussion of the disruptions to our business that have occurred during the year. We also report fully on the same indicators as last year, regardless of whether performance has improved or declined.

Reporting methodology

The indicators against which we report are calculated using company guidelines, referred to as the “Basis of reporting” which you can download from corporate.arcelormittal.com

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 49 GRI content index

Link to relevant Disclosure in Aspect General standard disclosures Reference page report Strategy and analysis G4-1 Declaration from the top decision- Message from the CEO, p. 10 maker in the organisation Organisation Profile G4-3 Name of organisation Overview of the group p. 6 G4-4 Primary brands, products and Overview of the group p. 6 services G4-5 Location of the organization’s Overview of the group p. 6 headquarters G4-6 Number of countries where the organization operates and names of Overview of the group p. 6 countries where the organization has significant operations G4-7 Nature of ownership and legal form Overview of the group p. 6

G4-8 Markets served Overview of the group p. 6

G4-9 Scale of the organization Overview of the group t p. 6 Our performance in p. 11 G4-10 Total number of employees 2015, p. 18 outcome 1, G4-11 Percentage of total employees covered by collective bargaining Outcome 1 p. 18 agreements G4-12 Organization’s supply chain Outcome 7, p.37 G4-13 Significant changes during the reporting period regarding the There were no changes organization’s size, structure, ownership, in the reporting period or its supply chain G4-14 Precautionary approach or Transparent governance p. 46 principle G4-15 Externally developed economic, environmental and social charters, Transparent governance, principles, or other initiatives to which stakeholders p. 47 the organization subscribes or which it engagement endorses G4-16 List memberships of associations Transparent governance p. 47

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 50 Identified material aspects and boundaries corporate. arcelormittal.com/ G4-17 Entities included in the financial ArcelorMittal Group sustainability/ statement and Sustainability report report reporting-hub/gri- index G4-18 Process for defining the report Sustainable development content and the Aspect Boundaries. p. 12 through 10 outcomes Implementation of the Reporting p. 49 Principles for Defining Report Content About Report Sustainable development G4-19 Material aspects identified in the p. 12 through 10 outcomes process for defining report content Sustainable development G4-20 Aspect Boundary within the p. 12 through 10 outcomes organization for each material aspects corporate. arcelormittal.com/ G4-21 Aspect Boundary outside the sustainability/ organization for each material aspects reporting-hub/gri- index G4-22 Restatements of information No restatement provided in previous reports achieved corporate. G4-23 Significant changes from previous arcelormittal.com/ reporting periods in the Scope and Aspect sustainability/ Boundaries. reporting-hub/gri- index Stakeholder Engagement Transparent governance, G4-24 List of stakeholder groups stakeholders p. 47 engaged by the organization engagement

G4-25 Basis for identification and Transparent governance, selection of stakeholders with whom to stakeholders p. 47 engage engagement Transparent governance, G4-26 Organization’s approach to stakeholders p. 47 stakeholder engagement engagement G4-27 Key topics and concerns that Transparent governance, have been raised through stakeholder stakeholders p. 47 engagement,and how the organization has responded to those key topics engagement

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 51 Report profile

G4-28 Reporting period About Report p. 49 G4-29 Date of most recent previous About Report p. 49 report G4-30 Reporting cycle About Report p. 49 G4-31 Contact point for questions Last page regarding the report G4-32 In accordance’ option and GRI GRI Index p. 50 Content Index for the chosen option Governance p. 46; G4-34 Governance structure of the Transparent governance, ukraine.arcelormittal. organization com- Investors and Shareholders Ethics G4-56 Organization’s values, principles, Overview of the group p. 6 standards and norms of behavior such as codes of conduct and codes of ethics Transparent governance p. 46 Economic performance indicators Economic G4-EC1 Direct economic value generated Outcome 8 p. 43 performance and distribute G4-EC7 Development and impact of Indirect economic infrastructure investments and services Outcome 10 p. 45 impact supported Procurement G4-EC9 Proportion of spending on local Outcome 10 p. 45 practices suppliers

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 52 Environmental performance indicators G4-DMA Generic Disclosures on p. 26; Materials Outcome 4 Management Approach 56 G4-EN1 Materials used by weight or Our performance in p. 26; volume 2015, 56 G4-EN2 Percentage of materials used Our performance in p.26 that are recycled input materials 2015, Outcome 4 G4-EN3 Energy consumption within the Our performance in Energy p. 35 organization 2015, Outcome 6 Our performance in G4-EN5 Energy intensity p. 35 2015, Outcome 6 G4-EN6 Reduction of energy Our performance in p. 36 consumption 2015, Outcome 6 Our performance in Water G4-EN8 Total water withdrawal by source p. 33 2015, Outcome 5 G4-EN10 Percentage and total volume of Our performance in p. 33 water recycled and reused 2015, Outcome 5 G4-EN15 Direct greenhouse gas (GHG) Our performance in Emissions p. 35 emissions (Scope 1) 2015, Outcome 6 G4-EN15 Direct greenhouse gas (GHG) Our performance in p. 35 emissions (Scope 1) 2015, Outcome 6 G4-EN18 Greenhouse gas (GHG) Our performance in p. 35 emissions intensity 2015, Outcome 6 G4-EN21 NOX, SOX, and other significant Our performance in p. 30 air emissions 2015, Outcome 5 Effluents and Our performance in G4-EN22 Total water discharge p. 30 waste 2015, Outcome 5 G4-EN23 Total weight of waste by type Our performance in p. 27 and disposal method 2015, Outcome 5

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 53 Social performance indicators

Labour practices and decent work G4-LA1 Total number and rates of new Employment employee hires and employee turnover by Outcome 1 p. 18 age group, gender and region G4-LA4 Minimum notice periods Labour / regarding operational changes, including management Outcome 1 p. 18 whether these are specified in collective relation agreements G4-LA6 Type of injury and rates of injury, Occupational occupational diseases, lost days, and Outcome 1 p. 16 health and safety absenteeism, and total number of work- related fatalities, by region and by gender G4-LA9 Average hours of training per Training and year per employee by gender, and by Outcome 1 p. 19 education employee category G4-LA11 Percentage of employees receiving regular performance and career Outcome 1 p. 19 development reviews, by gender and by employee category G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, Outcome 1 p. 18 age group, minority group membership, and other indicators of diversity

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 54 Human rights G4-DMA Generic Disclosures on Management Approach Transparent governance p. 46

G4-HR2 Total hours of employee training Investment on human rights policies or procedures concerning aspects of human rights that Transparent governance p. 46 are relevant to operations, including the percentage of employees trained

G4-HR3 Total number of incidents of Non- discrimination and corrective actions Outcome 1 p. 18 discrimination taken

G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labor, and measures Organization does not use child labour. The activity with great Child labour taken to contribute to the effective risk of use of child labour has not been revealed abolition of child labor

G4-HR6 Operations and suppliers identified as having significant risk Forced or for incidents of forced or compulsory Organization does not use forced or compulsory labour. The compulsory labour labor, and measures to contribute to activity with great risk of use of forced or compulsory labour the elimination of all forms of forced or has not been revealed compulsory labor

G4-HR7 Percentage of security personnel trained in the organization’s human rights Security practices Transparent governance p. 46 policies or procedures that are relevant to operations. Society G4-SO4 Communication and training on Anti-corruption anti-corruption policies and procedures Transparent governance p. 46

- fully disclosed - partially disclosed

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 55 SD Data table 2015

Metric Value Performance Crude steel production tonnes (million) 6,3 6,0 1. Safe, healthy, quality working lives for our people 2014 2015 Number of employees - total 29 131 27 139 Fatalities - total number 1 2 per million hours Lost-time injury rate 0.52 0.35 worked Lost day rate % 5.8 4.4 Occupational disease rate % 0.17 0.17 Absenteeism rate - total % 3.57 3.37 Employee turnover rate % 2.0 2.2 Number of strikes exceeding one week in duration number 0 0 No. training hours per employee hours 68 85 2. & 3. Products that accelerate more sustainable

lifestyles and create sustainable infrastructure Research and development spend (ArcelorMittal $ (million) 259 227 Group)

Raw materials used by weight: - Iron ore million tonnes 25.1 24.5 - Coal million tonnes 2.5 2.6 - Coke million tonnes 1.7 1.9 Recycling input rate % 30% 30% Steel scrap recycled million tonnes 1.9 1.8

CO2 avoided from steel recycled million tonnes 2.4 2.3 Production residues and by-products re-used % 52 51 BF slag to cement industry million tonnes 0.8 0.7

CO2 avoided from slag re-use in cement industry million tonnes 0.6 0.5 5. Trusted user of air, land and water Environmental and energy capital expenditure (million) 718.4 859.5 Air Total dust emissions thousand tonnes 41.9 36.5 Dust emissions (steel) per tonne kg/tonne of steel 6.7 6.0 NOx thousand tonnes 8.9 12.8 NOx (steel) per tonne kg/tonne of steel 1.4 2.1 SOx (steel) thousand tonnes 8.0 7.9 SOx (steel) per tonne kg/tonne of steel 1.3 1.3

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 56 Land Production residues to landfill/waste (steel) % Water Water intake* m3 per tonne of steel 8.2 9.1 Net water consumption* m3 per tonne of steel 7.7 8.5 6. Responsible energy user that helps create a lower carbon future Energy intensity (steel)* GJ/t liquid steel 20.1 20.0 Primary energy consumption million GJ (PJ) 140.6 135.4 Total CO2e footprint million tonnes CO2e 13 14 tonnes CO2 per tonne CO intensity (steel) 2.1 2.2 2 of steel 7. Supply chains our customers trust Global procurement suppliers evaluated against code number 328 for responsible sourcing 8. Active and welcomed member of the community Estimated direct economic contribution (million) 32 909 43 452 payments to government of which: - State budget (million) 1 021 3 923 - Municipal budgets (million) 658.0 731.0 - Employee salaries, wages and pensions (million) 3 224.4 3 494.5 - Supplier and contractor payments (million) 25 861 34 784 - Capital expenditure (million) 2.9 5.17 - Community investment spend (million) 28.6 18.3 (including STEM spend) - Other payments (million) 2 113 3 991 9. Pipeline of talented scientists and engineers

for the future % community investment allocated to developing 9.3% scientists and engineers Investment in STEM projects (million) - 1.7 10. Our contribution to society measured, shared

and valued CR reporting according GRI + + Transparent good governance % of employees completed code of business conduct % 38.5 14.8 training % of employees trained on human rights % 49.6 29.1 % of security trained on human rights % 71.8 N/A % of employees completed anti-corruption training % 2.3 1.4

ArcelorMittal Kryvyi Rih Sustainability Report – 2015 57 Published in June 2016.

РJSC ArcelorMittal Kryvyi Rih 50095, Ukraine, Dnepropetrovsk region, Kryviy Rih, Ordzhonikidze st., 1

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ArcelorMittal Kryvyi Rih Sustainability Report – 2015 58