Presentation was developed to take part in ArcelorMittal's YoungManagers Conference 3.10.2012

1. Обращение гендиректора
компании АрселорМиттал
Лакшми Миттала
Уважаемые коллеги,
Четыре года назад мы стали свидетелями того, как период самого мощного роста в
последнее время внезапно завершился. Тогда мы полагали, что столкнулись с глобальным, но
краткосрочным финансовым кризисом …
… Однако в 2012 г. мы убедились, что ситуация лучше не становится, а в последние месяцы
основные показатели мировой экономики ухудшились…
…Совершенно ясно, что перед нами стоят сложные задачи. Важно, чтобы вы понимали: мы
знаем какие это задачи и уверены, что знаем как их решить. Правление Группы и
Управляющий комитет определили четкую стратегию, направленную на преодоление этих
вызовов, и при поддержке наших руководителей и сотрудников я полагаю, что мы успешно
реализуем данную стратегию.
…Не менее важно быть рентабельными: ни один бизнес не может стабильно работать без
прибыли. Это необходимое условие для инвестиций и роста, для работы с заинтересованными
сторонами и усиления бизнеса в целом. Поэтому мне бы хотелось, чтобы все мы искали
возможности повысить нашу рентабельность, увеличивая доходы компании или повышая
конкурентоспособность по затратам.
Я уверен, что наша компания снова встанет на путь развития и роста.

2. Mr Mittal’s
message to employees
Dear colleagues,
It is now four years since the biggest growth period in recent times came to an abrupt end. At the
time, we defined this global event as a short-term financial crisis. Our response was to cut costs,
preserve cash and focus on our customers…
…However 2012 has shown us that this is no longer the case and in recent months global economic
indicators have deteriorated…
… It is clear then that we face challenges. What is important for you to know is that we understand
what these challenges are and we are confident that we know the solution. The GMB and
management committee have defined a clear strategy to surmount these challenges and with the
support of our leadership and employees I know that we will successfully implement that strategy…
… It is equally important to be profitable: no business can be sustainable without profit. It is a
prerequisite for investment and growth, to take care of all our stakeholders and to strengthen the
business in general. I would therefore like to see all of us looking for opportunities to boost our
profitability, be it through top-line growth or improving our cost competitiveness…
… I am sure that this company will be back on a roadmap of progress and growth.

3. Optimization of transportation.
Coal Department
Team #4
Coal Division
3

4. Team
4

5. GU-CHUAN-HAI
Sergey
PROGRESS team,
Coal department
team Coordinator

6. SULTANOV
Kirill
Shakhtinskaya mine,
Coal Department

7. OSTAPENKO
Dmitriy
Transportation department,
Steel Department

8. CHERNETSKIY
Vyacheslav
Kostenko mine,
Coal Department

9. JAKSYBAEV
Ayjarkyn
Shakhtinskaya mine,
Coal Department

10. KALININ
Anatoliy
Kostenko mine
Coal Department

11. PRUDILNIK
Andrey
Tentekskaya mine,
Coal Department

12. TALOVSKIY
Ilya
TEAM LEADER
Progress team
Coal Department

13. 13

14. Comfortable Tomorrow
Today’s
“To Do” list

15. Mine Number of buses
In property of mines
Kuzembaeva 7
Kostenko 8
Saranskaya 8
Abayskaya 8
Kazakhstanskaya 7
Lenina 7
Tentekskaya 7
Shakhtinskaya 8
Total 60 Buses

16. From year to year number of employees of coal department
number of emloyees
decreased
2009 2010 2011
Meanwhile the cost of passenger transportation grows
in inverse proportion

17. Where’s the logic?
What can we do today
TODAY ?
To be Comfortable Tomorrow!
TO FEEL COMFORTABLE TOMORROW

18. How can we find right ?
DECISSION
2012 ?
2009 2010 2011

19. Company PROBLEM , our SOLUTION
2012,2013 …
2009 2010 2011

20. BRAINSTORMING:
many suggestions
Preference CIRCULAR TRANSPORTATION
PILOT PROJECT,for two mines:
Kazakhstanskaya,Lenina

21. Current buses occupation analysis
Lenina mine Kazakhstanskaya mine
OCCUPIED AVAILABLE OCCUPIED AVAILABLE
MAX 47% (35 places) MIN 53% (40 places) MAX 47% (35 places) MIN 53% (40 places)

22. …Also was analyzed CURRENT ROUTES
Novodolinka
1 Lenina mine
1 3 km
3~5 min
Abay
1 Kazakhstanskaya
mine
22

23. Shakhtinsk CURRENT ROUTES
3
Shakhtinsk
Lenina mine
3
3 km
3~5 min
Kazakhstanskaya mine
23

24. HOW can we achieve right result?
• Occupation Video analysis (addendum)
• Occupation driver’s analysis (addendum)
• Private vehicles analysis (addendum)
• Meetings with mines and transport department
management

25. «Circular transportation»
is the best option
to implement
WITHOUT TROUBLES
for the route between both mines

26. NEW SCHEEME OF CIRCULAR TRANSPORTATION
New scheeme of
Between Abay, Novodolinka to Lenina mine
Kazakhstanskaya mine
Novodolinka
3 = 1
Lenina mine
3~5 minutes
3 km
WE DO NOT NEED
TWO BUSES!!!
Abay
Kazakhstanskaya mine 26

27. Our scheeme of new routeTRANSPORTATION
CIRCULAR
Shakhtinsk-Lenina mine-Kazakhstanskaya mine
6 = 3
Lenina mine
3-5 minutes
Shakhtinsk
3 km
WE DO NOT NEED
THREE BUSES!!!
Arrival time will be not changed
Kazakhstanskaya mine
27

28. RESULT
Lenina
Kazakhstanskaya
Occupied 86% Available 14%
AVERAGE OCCUPATION – 75%

29. RESULT
9 = 4
5 - free

30. LOSSES
are less for more than
400 THOUSANDS US $
AND THAT IS ONLY PER 2 mines, and we’ve got…
…

31. Tomorrow’s “TO DO” list
• Tentekskaya mine + Shakhtinskaya mine ~ 0,5 mln US $
• Karaganda region Transportation~ 1 mln US $
• Abayskaya+ CWP “Vostochnaya” ~ 0,1 mln US $
• Freight transport ~ 1,2 mln US $
TOTAL ~ 3 million US $

32. Our development is within the
bounds of transportation law as per
the Republic of Kazakhstan
Bus (Class 1): Busin which there are seats, as well as areas outside the pass intended for standing
passengers. The design of these buses provide the ability to move passengers in accordance with
frequent stops.? Intercity (Class II): Bus, designed and equipped for long-distance transport. The bus
pass this class is no areas specifically designed for standing passengers, but it can carry passengers
standing in the aisle at a short distance.
...
4.2.2 To include transportation commuting outside the city limits (settlement) to a distance of 50
kilometers.? Commuter services are operated by buses of class I and II.
4.3.2 To include transportation commuting outside the city limits (settlement) to a distance of 50
kilometers.

33. "Today is the FIRST day of the rest of your life..."
promises nothing but FAILURE unless
we make
"TODAY THE LAST OF YOUR PAST!"

34. ADDENDUM

35. Occupation analysis, technological shifts
Current situation
1.N.Dolinka-Lenina mine 2. N.Dolinka-Kazahstanskaya mine 3. Abay-Kazakhstanskaya mine
%33 %27 %28
73 72
67%
% %
OCCUPATION OCCUPATION OCCUPATION
33 %=25 persons 27 %=20 persons 28 %=21 persons
Expected occupation (MAX)
Abay-N.Dolinka-Lenina-Kazakhstanskaya
(Technological shift)
27%
OCCUPATION
%83 83% (62 persons)
Passport bus occupation 75 persons

36. Proposed rout scheme Abay-N.Dolinka-Lenina mine-
Kazakhstanskaya mine
N.Dolinka Kazakhstanskaya Lenina PRESENT NEW
ARRIVAL TIME ARRIVAL TIME
NEW PRESENT NEW
START TIME START TIME START TIME 11.55 12.05 +10min
11.30 11.20 11.30 -10min 17.55 18.05 +10min
Lenina
START TIME 17.30 17.20 17.30 -10min 23.55 00.05 +10min
WILL BE NOT 23.30 23.20 23.30 -10min
CHANGED
START TIME
21.45 START TIME
PRESENT NEW ARRIVAL TIME 04.45 WILL BE NOT
ARRIVAL TIME ARRIVAL TIME 22.00
21.50 22.00 +10min 09.45 CHANGED
05.00 ARRIVAL TIME
04.50 05.00 +10min 10.00 WILL BE NOT
09.50 10.00 +10min
CHANGED
3~5 мин.
3 км
Abay PRESENT NEW
Start time Start time
+20мin Arrival Start
11.15 10.55 +20min time time
17.15 16.55 +20min 12.15 21.35
23.15 22.55 18.15 04.35
00.15 09.35
Kazakhstanskaya
Kazakhstanskaya Lenina
Previously was Present NEW
ARRIVAL TIME ARRIVAL TIME +20мin START and ARRIVAL TIME
no route 22.15 22.35 +20мin WILL BE NOT CHANGED
Kazakhstanskaya 04.15 04.35 +20мin
-ABAY 10.15 10.35
36

37. Occupation analysis, technological shift. Shakhtinsk 3 routes
1 rout-Kazakhstanskaya 2 route Kazakhstanskaya 3 route Kazakhstanskaya
%31 %47 %47
69 53 53
% %
%
1 route Lenina 2 route Lenina 3 route Lenina
%53 %36 %37
47 64 63
% % %
Expected occupation,after implementetion of circular
transportation
26% 27% 26%
%84
%83 %84

38. Current scheme of transportation
Shakhtinsk-Lenina
Shakhtinsk- Kazakhstanskaya
Start Arrival
time time
Lenina 21.45
Shakhtinsk Kazakhstanskaya 04.45
12.05
18.05
Start time Start time
11.35 09.45 00.05
11.45 Lenina
17.45 17.35
23.45 23.55 3~5 min 3 km
Arrival Arrival
Start Arrival
22.05 22.15
time time
05.05 05.15
21.35 12.15
10.05 10.15
04.35 18.15
Kazakhstanskaya
09.35 00.15
Proposal
Shakhtinsk – Lenina –Kazakhstanskaya (3
Start Arrival
routes) time time
21.45 12.05
Lenina 04.45 18.05
Shakhtinsk Present start time 09.45 00.05
11.35 LENINA
-10min
17.35
-10min Start and Arrival time
23.55
-10min WILL BE NOT CHANGED
New Start time New Arrival time
11.45 22.15 Kazakhstanskaya
17.45 05.15 Start Arrival
23.45 Present arrival
10.15 time time
time
21.35 12.15
22.05 +10min
04.35 18.15
05.05 +10min Kazakhstanskaya
09.35 00.15
10.05 +10min
38

40. Thank you!!!