Executive Summary of the 2009 Financial Statement

DILLINGER HÜTTE EXE CUTIVE SUMMARY OF THE 2009 F INANCIAL STATEME NT KEY FIGURES 2008 2009 Change Hot metal purchase in kt* 2 241 1 646 – 26.6 % Crude steel production in kt 2 619 1 922 – 26.6 % Total production of heavy plate in kt 2 227 1 609 – 27.8 % of which produced in Dillingen in kt 1 481 1 147 – 22.6 % of which produced in Dunkerque in kt 746 462 – 38.1 % Total shipments in kt 2 921 2 112 – 27.7 % of which heavy plate in kt 2 254 1 677 – 25.6 % of which semi-finished product in kt 667 435 – 34.8 % Total workforce (excluding trainees) as of 31 Dec. 5 322 5 296 Personnel expenses in millions of 345 312 of which for pensions in millions of 22 21 Balance sheet total in millions of 2 748 2 768 Shareholders’ equity in millions of 1 369 1 519 Fixed assets in millions of 1 488 1 516 Net income for the year before profit transfer in millions of 607 402 Earnings from ordinary activities in millions of 609 404 EBITDA in millions of 613 421 EBIT in millions of 549 361 Cashflow from operations in millions of 532 523 Sales by country in millions of Germany 1 097 843 France 739 461 Other EU countries 463 374 Other exports 733 483 Total sales 3 032 2 161 – 28.7 % * Total production ROGESA Roheisengesellschaft Saar mbH: 2 795 kt (2008: 4 357 kt) 1 Samuel Beckett Bridge: „The Irish Harp“ consisting of high-strength steel plate manufactured by Dillinger Hütte 2 CONTENTS*) Members of the Supervisory Board ............................................. 4 Members of the Board of Management ......................................... 5 Report of the Board of Management (abridged*) ................................ 6 Annual financial statement (abridged*) ......................................... 34 Balance sheet .................................................................... 34 Profit and loss statement ......................................................... 36 Cash flow statement ............................................................. 37 Listing of shareholdings . 38 * This abridged English-language financial statement is an excerpt from the annual report of Dillinger Hütte for the 2009 financial year. This publication does not correspond to the complete form required by law (for this, please see the 2009 Annual Report for Dillinger Hütte in German). 3 MEM BERS OF THE S UPERVISORY B OARD Dr. MICHAEL H. MÜLLER Attorney Saarbrücken Chairman ARMIN SCHILD District Manager for IG Metall Hessen, Biebertal Rheinland-Pfalz, Thüringen and Saarland 1st Deputy Chairman MICHEL WURTH Member of the Group Management Board, ArcelorMittal Luxembourg 2nd Deputy Chairman Dr. BERND BERGMANN Member of the Executive Board of the Curatorship Wallerfangen for the Montan-Stiftung-Saar trust Prof. Dr. HEINZ BIERBAUM Director of the INFO-Institute, Saarbrücken Saarbrücken CARL DE MARÉ Vice President ArcelorMittal, Chief Technical Belsele Officer Flat Carbon Europe HANS-GÜNTER HERFURTH Former Managing Director of ROGESA Dillingen Roheisengesellschaft Saar mbH and Zentralkokerei Saar GmbH (until 15 July 2009) ALBERT HETTRICH Chief Representative of SHS-Struktur-Holding-Stahl Saarbrücken ROBERT HIRY Primary Authorized Representative for IG Metall Rehlingen-Siersburg Völklingen Administrative Office GÜNTER LUDWIG Deputy Chairman of the Dillinger Hütte Works Council Losheim REINER PETRY Member of the Dillinger Hütte Works Council Rehlingen-Siersburg ALBERT RINNEN Vice President Controlling, ArcelorMittal Luxembourg (until 15 July 2009) EUGEN ROTH Chairman of Deutscher Gewerkschaftsbund Saar Merchweiler (German Federation of Trade Unions, Saar District) ROMAN SELGRATH Chairman of the Dillinger Hütte Works Council Dillingen CLAUDE SEYWERT Chief Financial Officer, ArcelorMittal Lorraine Luxembourg (as of 16 July 2009) ERICH WILKE Bank Executive (retired) Königstein (Taunus) Henner Wittling Member of the Executive Board of the Curatorship for Ottweiler the Montan-Stiftung-Saar trust (as of 16 July 2009) 4 MEM BERS OF THE B OARD OF MANAGEM ENT Dr. PAUL BELCHE Chief Executive Officer, Commercial Division Dr. NORBERT BANNENBERG Chief Technical Officer Dr. KARLHEINZ BLESSING Chief Human Resources Officer / Labour director FRED METZKEN Chief Financial Officer 5 R EPORT OF THE B OARD OF MANAGEM ENT (abridged) General Global financial and economic crisis escalates economic situation The massive weakening trend in international economic conditions and financial markets, which began in mid-2008, expanded in 2009 into a global financial and economic crisis. By summer 2009, the world economy found itself in a drastic and synchronized downturn, which was particularly pronounced in industrial countries (- 3.2 %*; 2008: + 0.5 %). At the same time, world trade collapsed: at - 11.9 % (2008: + 3 %), the international movement of goods recorded the sharpest slump since World War II, with problems in the financing of trading transactions likely being partially responsible. The total worldwide gross domestic product sank by 0.8 % compared to the previous year (+ 3 %); however, since autumn 2009 signs have increasingly indicated that the worst of the crisis is over. Numerous assistance programs, including car-scrapping incentives and reduced working hours, as well as economic stimulus packages costing billions, have succeeded in curb- ing the downturn and stopping the recession in the Western industrial countries. This was particularly true for the United States, which experienced a decline in economic performance of 2.5 % (2008: + 0.4 %) in its worst economic crisis in more than 25 years. In the 3rd quarter, the US economy began to grow once again for the first time since the end of 2007. Even emerging markets such as China and India, which have previously enjoyed uninterrupted growth, were not left unscathed by the world economic crisis. To counteract sharp downturns in market activity, these countries boosted their economic performance with large government economic stimulus programs. China was thus able to further increase its gross domestic product (+ 8.7 %) compared to the previous year (+ 9.6 %), and posted the world's highest export figures as the strongest exporting country – beating out Germany for the first time. India’s economic activity also remained relatively robust (+ 5.6 %) in comparison with the previous year (+ 7.3 %). Sharp downturn in Europe Export-oriented Europe was particularly hard hit in 2009 by the contraction of world trade, the decline of industrial production and the sharp drop in gross fixed capital investments (- 11.4 %). The economic downswing was partially curbed by public investment and private consumption, so that economic activity once again began to increase slightly in the third quarter. Gross domestic product in the euro area declined for all of 2009 by 3.9 % (2008: + 0.6 %). The worldwide slump in demand for investment goods had a particularly dramatic impact on Germany: the German economy contracted more sharply (- 5 %) than ever before in the postwar period (2008: + 1.3 %). The effects of the global economic crisis had an equally sharp impact on Italy (- 4.8 %), Spain (- 3.6 %) and the United Kingdom (- 4.8 %). France profited from its consumer goods-oriented production structure, and accordingly, overall economic production there declined significantly less than in the euro area as a whole (2009: - 2.3 %; 2008: + 0.3 %). * All figures regarding economic conditions and the steel market are based on currently available, sometimes preliminary official and non-official statistics. 6 Report of the Board of Management The steel market Worldwide crude steel production once again declines After strong years of growth, the excellent conditions on the global steel market ended abruptly as the international financial crisis intensified in September 2008. World crude steel production 2009 was estimated at 1.220 billion tons,* which is more than 8 % lower than that of the previous year (1.330 billion tons). With the exception of Asia and the Middle East, no region was able to avoid the negative trend: indeed, if China is excluded, the decline in worldwide growth amounts to about 22 %. With a 13.5 % increase in production to 568 million tons, which amounts to a world market share of about 47 %, China dominates the crude steel market to an even greater degree than in years past. The declines involved the CIS countries (- 15 %) – with a production volume of more than 97 million tons, the second-largest manufacturers of crude steel – as well as Japan (- 26 %), number three among producing countries with 88 million tons. The decline in production was similarly dramatic in the United in millions of t States, falling by - 36 % compared with the previous 1 400 year to 58.1 million tons, and to 139.1 million tons 1 300 in the 27 European Union countries (- 30 %). With 1 200 production levels this low, the EU-27 lost almost 1 100 4 % of world market share compared with 2008. 1 000 production 900 The situation was similar for individual countries: consumption 800 production was reduced in all EU countries includ- 700 ing Germany, the biggest producer of steel in the 600 European Union, where production – at 32.7 million 500 tons – reached its lowest level since 1963 (- 28.7 %). 9495 96 97 98 99 00 01 02 0304 0506 07 08 09 Year Italy (- 35.5 %) and France (- 28.2 %) were forced to cope with similar declines. Development of worldwide steel production and apparent steel consumption (finished products) Slump in global steel demand Hardly any other sector was as hard hit by the world in millions of t % economic crisis and the decline in gross investment 1400 50 as was the steel industry. With a decline in global 45 1200 steel demand of 1.4 % already posted for 2008, it 40 sank for the second consecutive time in 2009 by a 1000 35 total of 8.6 %. Nearly all important end-buyer seg- 30 800 ments were equally impacted by the crisis. The 25 declines in activity were particularly dramatic in the 600 20 automotive industry, in machine manufacturing and 400 15 building construction, especially in Western indus- 10 trial countries, where steel demand fell by total 200 5 amounts of between 30 % and 36 %.

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