People Products Infrastructure Resources Air, land and water Responsible energy Supply chains Local communities Scientists and engineers Impact measurement 1 People Products Infrastructure Resources Air, land and water Responsible energy Supply chains Local communities Scientists and engineers Impact measurement People Products Infrastructure Resources Air, land and water Responsible energy Supply chains Local communities Scientists and engineers Impact measurement Table of content About ArcelorMittal About ArcelorMittal . 3 Message from CEO . 4 Sustainable development through 10 outcomes . 5 Our progress in 2017 . 6 Safe, healthy, quality working lives for our people . 8 Products that accelerate more sustainable lifestyles . 12 23 815 employees is average headcount Products that create sustainable infrastructure . 12 of PJSC ArcelorMittal Kryvyi Rih 5.8 MT of steel produced in 2017 Efficient use of resources and high recycling rates . 14 Trusted user of air, land and water . 15 Responsible energy user that helps create a lower carbon future . 20 Supply chains that our customers trust . 21 Active and welcomed member of the community . 22 Pipeline of talented scientists and engineers for tomorrow . 23 Our contribution to society measured, shared and valued . 24 Transparent good governance . 25 About this report . 27 Performance at a glance . 28 Annex 1: GRI Content Index . 30 Annex 2: Independent Assurance Report . 34 ArcelorMittal is leading global steelmaking company with steel products – rebar and wire rod of ordinary and alloyed annual achievable capacity of about 113 MT of steel with grades, wire rod, bars and sections of low alloyed grade as about 197 thousand employees in 60 countries of the well as special purpose steel grades . 5 .8 MT of steel were world and economic presence in 18 countries . The Company produced in 2017 . is one of the leaders on main global steel markets including PJSC ArcelorMittal Kryvyi Rih is one of the biggest exporters such fields like automotive, construction, household in Ukraine . appliances and packaging manufacturing . It has research and In 2017, sales volumes of steel products produced by PJSC development as well as engineering capabilities, significant ArcelorMittal Kryvyi Rih were over 5 .4 MT to more than stock of raw materials and outstanding distribution 60 countries around the world . networks . The average headcount of PJSC ArcelorMittal Kryvyi Rih Basic philosophy of ArcelorMittal is production of safe during 2017 was 23 815 employees . and sustainable steel . Sustainable development, quality The Company cooperated with over 1 700 suppliers and and leadership are core values of ArcelorMittal Group and contractors, around 200 organizations with over 20 000 determine overall strategy of its long-term development . employees were involved in construction and installation Safety is top priority for each company in the Group and the work . Payments to suppliers and contractors amounted to target of ArcelorMittal is to become the safest steelmaking 42 bln . UAH . and mining company in the world . PJSC ArcelorMittal Kryvyi Rih is one of the biggest tax Detailed information about ArcelorMittal Group you can find payers in the country and significantly contributes to the on the web-site www .corporate .arcelormittal .com economy of Ukraine, Dnipropetrovsk region, Kryvyi Rih . In PJSC ArcelorMittal Kryvyi Rih is a part of international 2017, the Company paid taxes and fees to the budget and 2 corporation ArcelorMittal . The Company specializes in long national specialized funds for a total amount of 7 .7 bln . UAH . 3 1The Company is located in Kryvyi Rih (Ukraine) People Products Infrastructure Resources Air, land and water Responsible energy Supply chains Local communities Scientists and engineers Impact measurement People Products Infrastructure Resources Air, land and water Responsible energy Supply chains Local communities Scientists and engineers Impact measurement Message from Sustainable development through Chief Executive Officer 10 outcomes of ArcelorMittal ArcelorMittal aims to contribute to a more sustainable future . 01 People Our 10 outcomes of sustainable Safe, healthy, quality working development are the basis of our lives for our people sustainability concept and all the efforts will be focused on their achievement in order to fulfill 02 our long-term obligations to all Products stakeholders that accelerate more sustainable lifestyles 03 Infrastructure Products that create sustainable infrastructure Resources 04 Efficient use of resources and high recycling rates 05 Air, land and water Dear readers, succeeded to compensate the losses we had on Trusted user of air, Being a part of international Group – global our traditional sales markets . land and water leader in steelmaking industry, we strive for the We also faced difficulties to fulfill our production top standards in corporate responsibility that program . But we continue moving forward, help us to be the most sustainable metallurgical we modernize our facilities and implement Responsible energy 06 company in Ukraine . We understand that new investment projects, which enable us to user that helps create financial stability and corporate responsibility go increase the productivity and to improve the a lower carbon future hand-in-hand . environment . Overcoming difficulties and solving the Our priority No . 1 is safety of our employees and problems, we continue to work . Regardless contractors . That is why, as before, we seriously 07 to challenges, we invest in environmental focus on health and safety . Supply chains that our customers trust sustainability, we build partnership Many families in Kryvyi Rih depend on the relationships with our communities and we prosperity of our Company – not only the fulfil our obligations to all stakeholders . Annual employees of the plant but also many other sustainable development reporting is a key organizations and firms whose employees work 08 part for transparent and open dialogue with on our site . Local communities the stakeholders . Ability to demonstrate proper PJSC ArcelorMittal Kryvyi Rih has over 23 000 Active and welcomed social and community development practices employees . Our direct contribution amounted to member of the community makes us more attractive partner and opens 3 . 8 bln UAH as salaries and 7 .7 bln UAH as taxes new opportunities for the business . into the budget . And additionally, about 200 Previous year, like recent years, was difficult companies with over 20 000 employees were 09 Scientists and engineers with many challenges . First, growing involved in construction and installation works; Pipeline of talented scientists competitiveness . As we depend on world we cooperated with over 1 700 companies of and engineers for tomorrow markets, we faced difficulties at many of them . suppliers and contractors paying 42 bln UAH for Unfortunately, we have lost competitiveness services and works . on CIS market; antidumping (increased) duties This commitment to creation of sustainable 10 for imported products, including Ukrainian business aims us, our customers and our Impact measurement ones, affected sales of our products . But we communities at powerful future . Our contribution All underpinned by to society measured, 4 5 transparent good shared and valued governance . People Products Infrastructure Resources Air, land and water Responsible energy Supply chains Local communities Scientists and engineers Impact measurement People Products Infrastructure Resources Air, land and water Responsible energy Supply chains Local communities Scientists and engineers Impact measurement КлючовіOur progress показники in 2017 2017 Revenue: M UAH Headcount: Social investments: M UAH 2017 66 185.9 2017 23 815 2017 25.8 2016 52 961.8 2016 24 633 2016 16.5 2015 46 261.3 2015 27 139 2015 18.3 Lost-time injury frequency rate: (per 1 million of man-hours worked) Environmental investments: M UAH Payments to government: M UAH 2017 0.37 2017 851.2 2017 7 682.0 2016 0.41 2016 472.7 2016 6 329.0 2015 0.43 2015 859.5 2015 8 645.0 PERFORMANCE Hot metal Steel Rolled (MT) (MT) products 5.5 6.1 (MT) 5.1 5.6 5.3 6.1 6.3 5.8 5.6 6 7 2015 2016 2017 People Products Infrastructure Resources Air, land and water Responsible energy Supply chains Local communities Scientists and engineers Impact measurement People Products Infrastructure Resources Air, land and water Responsible energy Supply chains Local communities Scientists and engineers Impact measurement People. Safe, healthy, quality Health and Safety Safety is No . 1 priority for ArcelorMittal and one of key Group and preventing their re-occurrence in future . working lives for our people points for the stakeholders . In 2017, lost-time injuries rate 11 corporate standards aimed at fatalities prevention FPS was 0 .37 (2016: 0 .41) . Total number of accidents was (Fatality Prevention Standards) are also being implemented decreased to 21 (2016: 23) . Unfortunately, we failed to at the Company in order to decrease occupational injuries prevent 3 fatalities: hot rolling mill operator of Blooming rate . The requirements of the standards are mandatory shop, Rolling Department, dosing operator of Sinter shop, for compliance with for both employees of structural Mining Department and contractor’s employee . subdivisions and contractors . Most of the injuries occurred due to organizational reasons, We understand that much is to be done in order to improve non-fulfilment of the requirements of health and safety safety culture on production