Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:

In a very difficult environment, ArcelorMittal has succeeded in reducing its cost base substantially and significantly strengthening the balance sheet. We therefore start the year in a good position to benefit from the progressive, albeit slow, recovery that is underway. Although 2010 will continue to be challenging, we are now increasing capital expenditure to take advantage of selected growth opportunities as demand improves.

Fourth quarter 2009 news conference (for media)

ArcelorMittal management will host a news conference:

Fourth quarter 2009 earnings analyst conference call

Additionally, ArcelorMittal management will host a conference call for members of the investment community to discuss the full year and fourth quarter 2009 financial performance at:

Forward-looking statements

This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "target" or similar expressions. Although ArcelorMittal's management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal's securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the "SEC") made or to be made by ArcelorMittal, including ArcelorMittal's Annual Report on Form 20-F for the year ended December 31, 2009 to be filed with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

ArcelorMittal fourth quarter 2009 and full year 2009 results

ArcelorMittal, the world's largest and most global steel company, today announced results for the three and twelve month periods ended December 31, 2009.

Corporate responsibility performance and initiatives

Health and safety – Own personnel and contractors lost time injury frequency rate³

Health and safety performance, based on own personnel figures and contractors lost time injury frequency rate, improved from 2.5 for the year 2008 to 1.9 for the year 2009. Health and safety performance at the Company's mining facilities improved from 3.4 in year 2008 to 2.4 for year 2009, and at the Company's steel facilities performance improved from 2.4 in year 2008 to 1.8 for year 2009.

Analysis of results for the twelve months ended December 31, 2009 versus results for the twelve months ended December 31, 2008

ArcelorMittal's net income for the twelve months ended December 31, 2009 was $0.1 billion, or $0.08 per share, as compared to net income for the twelve months ended December 31, 2008 of $9.4 billion2, or $6.80 per share.

Sales and operating loss⁷ for the twelve months ended December 31, 2009 were $65.1 billion and $1.7 billion, respectively, as compared with sales and operating income for the twelve months ended December 31, 2008, of $124.9 billion and $12.2² billion, respectively. Sales were lower due to lower average steel selling prices (-27%) and lower steel shipment volumes (-30%) due to a sharp drop in global steel demand following the global economic crisis.

Total steel shipments for the twelve months ended December 31, 2009 decreased to 71.1 million metric tonnes as compared with total steel shipments of 101.7 million metric tonnes for the twelve months ended December 31, 2008.

Depreciation costs for the twelve months ended December 31, 2009 decreased to $4.9 billion as compared with depreciation costs for the twelve months ended December 31, 2008 of $5.0 billion.

Impairment losses for the twelve months ended December 31, 2009 amounted to $564 million⁸. Impairment losses for the twelve months ended December 31, 2008 had amounted to $1.1 billion, including impairments of $499 million and goodwill of $560 million.

Operating performance for the twelve months ended December 31, 2009 was negatively impacted by an exceptional charge of $2.4 billion (pre-tax) related primarily to write down on inventory and provisions for workforce reductions. This was partly offset by an exceptional gain of $380 million relating to a reversal of litigation provisions previously booked in 2008, and a net gain of $108 million recorded on the sale of carbon dioxide credits that ArcelorMittal purchased since 2007⁹. The operating performance for the twelve months ended December 31, 2008 had been negatively impacted by exceptional charges amounting to $6.1 billion consisting of a non-recurring expense of approximately $1.7 billion primarily related to vested post-employment benefits in connection with the entry by ArcelorMittal USA into a new labor contract with its union employees, and exceptional charges amounting to $4.4 billion related to write-downs of inventory and raw material supply contracts, and provisions for workforce reduction and litigation.

Income from equity method investments and other income for the twelve months ended December 31, 2009 was $58 million, as compared to $1.7 billion for the twelve months ended December 31, 2008. The decrease was due to lower income from the Company's investments due to the global economic crisis, as well as the gain recorded in 2008 from the sale of a stake in an investee company.

Net interest expense (including interest expense and interest income), remained flat at $1.5 billion for the twelve months ended December 31, 2009 as compared to the twelve months ended December 31, 2008. Interest cost increased during the year due to higher rates on capital markets refinancing, which was offset by lower overall net debt. During the twelve months ended December 31, 2009, the Company also recorded a loss of $0.9 billion as a result of mark-to-market adjustments on the conversion options embedded in its convertible bonds issued in the second quarter of 2009¹⁰. Foreign exchange and other net financing costs¹¹ were $385 million for the twelve months ended December 31, 2009, as compared to foreign exchange and other financing costs of $628 million for the twelve months ended December 31, 2008. Losses related to the fair value of derivative instruments for the twelve months ended December 31, 2009 amounted to $28 million, as compared with $177 million for the twelve months ended December 31, 2008.

Income tax benefit for the twelve months ended December 31, 2009 amounted to $4.5 billion, as compared with income tax expense for the twelve months ended December 31, 2008 of $1.1 billion. The income tax benefit for the year is primarily due to ArcelorMittal's 2009 loss as compared with 2008 profit, and its geographical mix.

Results attributable to non-controlling (minority) interest for the twelve months ended December 31, 2009 decreased to a loss of $43 million as compared with non-controlling (minority) interest for the twelve months ended December 31, 2008 of $1.0 billion. The decrease relates to lower income in subsidiaries with non-controlling (minority) interest due to the global economic crisis.

Analysis of results for three months ended December 31, 2009 versus three months ended September 30, 2009 and three months ended December 31, 2008

ArcelorMittal recorded net income for the three months ended December 31, 2009 of $1.1 billion, or $0.71 per share, as compared with a net income of $0.9 billion, or $0.60 per share, for the three months ended September 30, 2009, and net loss of $2.6 billion2 or $(1.93) per share, for the three months ended December 31, 2008.

Sales for the three months ended December 31, 2009 were $18.6 billion, higher as compared with $16.2 billion for the three months ended September 30, 2009 and down from $22.1 billion for the three months ended December 31, 2008. Sales were higher during the fourth quarter of 2009 as compared to the third quarter of 2009, primarily due to higher volumes (+10%) and average steel selling prices (+6%). Despite the improvement in demand during the fourth quarter of 2009, sales remain substantially lower year-on-year due to the global economic crisis.

Operating income increased to $0.7 billion for the three months ended December 31, 2009, as compared with $0.3 billion for the three months ended September 30, 2009 and an operating loss for the three months ended December 31, 2008 of $3.5 billion².

Total steel shipments for the three months ended December 31, 2009 were 20.0 million metric tonnes as compared with steel shipments of 18.2 million metric tonnes for the three months ended September 30, 2009 and 17.1 million metric tonnes for the three months ended December 31, 2008. This increase results from improved demand across all segments in the fourth quarter of 2009 as compared with the third quarter of 2009.

Depreciation expenses for the three months ended December 31, 2009 were $1.3 billion as compared with depreciation expenses of $1.2 billion for the three months ended September 30, 2009 and December 31, 2008, respectively. The increase in the fourth quarter of 2009 as compared to the third quarter of 2009 is primarily on account of exchange rate impact.

Impairment costs for the three months ended December 31, 2009 amounted to $502 million⁸ as compared to impairment losses of $62 million⁸ for the three months ended September 30, 2009. Impairment losses for the three months ended December 31, 2008 amounted to $588 million including asset impairments of $325 million and reduction of goodwill of $264 million.

The operating performance for the three months ended December 31, 2009 was positively impacted by an exceptional gain of $380 million relating to a reversal of litigation provisions previously booked in the fourth quarter of 2008, and a net gain of $108 million recorded on the sale of carbon dioxide credits that ArcelorMittal purchased since 2007. These carbon dioxide proceeds will be re-invested in energy saving projects. Operating performance for the three months ended December 31, 2008 had been negatively impacted by exceptional charges amounting to $4.4 billion related to write-downs of inventory and raw material supply contracts, and provisions for workforce reduction and litigation.

Income from equity method investments and other income for the three months ended December 31, 2009 resulted in a gain of $101 million, as compared to gains of $99 million and $386 million for the three months ended September 30, 2009 and December 31, 2008, respectively.

Net interest expense (including interest expense and interest income) increased to $415 million for the three months ended December 31, 2009 as compared to $387 million for the three months ended September 30, 2009 primarily due to higher interest rates on refinancing bond issuances in 2009 and exchange rate effects. Net interest expense for the three months ended December 31, 2008 had amounted to $468 million. During the three months ended December 31, 2009, the Company also recorded a loss of $430 million (versus a $110 million loss in the third quarter of 2009) as a result of mark-to-market adjustments on the conversion options embedded in its convertible bonds issued in the first half of the year. Foreign exchange and other net financing costs for the three months ended December 31, 2009 amounted to $84 million, as compared to gains of $106 million and $64 million for the three months ended September 30, 2009 and December 31, 2008, respectively. Gains related to the fair value of derivative instruments for the three months ended December 31, 2009 amounted to $2 million, as compared with gains of $6 million for the three months ended September 30, 2009, and losses of $240 million for the three months ended December 31, 2008, respectively.

ArcelorMittal recorded an income tax benefit of $1.3 billion for the three months ended December 31, 2009, as compared to an income tax benefit of $0.9 billion for the three months ended September 30, 2009. The income tax benefit for the three months ended December 31, 2008 was $1.1 billion.

Results attributable to non-controlling (minority) interest for the three months ended December 31, 2009 were $74 million as compared with profits attributable to non-controlling (minority) interest of $15 million for the three months ended September 30, 2009. Profits attributable to non-controlling (minority) interest for the three months ended December 31, 2008 were $34 million.

Capital expenditure projects

The following tables summarise the Company's principal growth and optimisation projects involving significant capital expenditure completed in 2009 and those that are currently ongoing.

1. Ongoing projects refer to projects in which construction has begun and exclude various projects that are under development such as in India.
2. Iron ore mining production is expected to commence in 2011 with initial production of 1 million tonnes.

Analysis of segment operations for the three months ended December 31, 2009 as compared to the three months ended September 30, 2009

Flat Carbon Americas crude steel production reached 5.4 million tonnes for the three months ended December 31, 2009, an increase of 25% as compared to 4.3 million tonnes for the three months ended September 30, 2009. Following the improvement in demand the Company has restarted certain steel production facilities.

Sales in the Flat Carbon Americas segment were $4.1 billion for the three months ended December 31, 2009, an increase of 24% as compared to $3.3 billion for the three months ended September 30, 2009. Sales improved primarily due to higher steel shipments (+16%) and average steel selling prices (+10%). As a result EBITDA improved by $28/tonne (+36%) to $108/tonne.

Flat Carbon Europe crude steel production reached 7.4 million tonnes for the three months ended December 31, 2009, an increase of 10% as compared to 6.7 million tonnes for the three months ended September 30, 2009. Following the improvement in demand the Company has restarted certain steel production facilities.

Sales in the Flat Carbon Europe segment were $5.9 billion for the three months ended December 31, 2009, an increase of 22% as compared to $4.9 billion for the three months ended September 30, 2009. Sales improved primarily due to higher steel shipments (+14%) and average steel selling prices (+6%). As a result EBITDA improved by $55/tonne (+112%) to $103/tonne.

EBITDA and operating results in the fourth quarter of 2009 included a net gain of $108 million recorded on the sale of carbon dioxide credits that ArcelorMittal purchased since 2007, and a $90 million non cash-gain relating to hedges on raw material purchases. Operating results in the third quarter of 2009 had been negatively impacted by a $62 million charge relating to impairment on coke oven assets at ArcelorMittal Galati, party offset by a $50 million non cash-gain relating to a hedge on raw material purchases.

Long Carbon Americas and Europe crude steel production reached 5.4 million tonnes for the three months ended December 31, 2009, an increase of 13% as compared to 4.7 million tonnes for the three months ended September 30, 2009. Following the improvement in demand, the Company has restarted certain steel production facilities.

Sales in the Long Carbon Americas and Europe segment were $4.6 billion for the three months ended December 31, 2009, an increase of 6% as compared to $4.3 billion for the three months ended September 30, 2009. Sales improved primarily due to higher steel shipments (+4%) and a marginal improvement in average steel selling prices (+2%).

Operating performance declined during the fourth quarter 2009 as revenue improvement was more than offset by an increase in costs, particularly scrap prices. During the quarter, the Company also recorded impairment costs of $281 million on its tubular business and certain idled assets (including $65 million in Roman, Romania and $65 million in Las Truchas, Mexico). During the fourth quarter of 2009, EBITDA declined by $25/tonne (-21%) to $92/tonne as compared to the third quarter of 2009.

AACIS segment crude steel production reached 3.9 million tonnes for the three months ended December 31, 2009, an increase of 15% as compared to 3.4 million tonnes for the three months ended September 30, 2009. Following the improvement in demand, the Company has restarted certain steel production facilities.

Sales in the AACIS segment were $2.3 billion for the three months ended December 31, 2009, an increase of 14% as compared to $2.0 billion for the for the three months ended September 30, 2009. Sales improved primarily due to higher average steel selling prices (+7%), while shipments remained flat.

Operating performance improved during the fourth quarter of 2009 as compared to the third quarter of 2009 with EBITDA improving by $24/tonne (+31%) to $101/tonne.

Stainless Steel segment crude steel production reached 452 thousand tonnes for the three months ended December 31, 2009, a decrease of 2% from 460 thousand tonnes for the three months ended September 30, 2009.

Sales in the Stainless Steel segment were $1.3 billion for the three months ended December 31, 2009, an increase of 18% as compared to $1.1 billion for the three months ended September 30, 2009. Sales improved primarily due to higher steel shipments (+17%) partially offset by lower average steel selling prices (-2%).

Operating performance declined during the fourth quarter of 2009, as compared to the third quarter of 2009 due to higher input costs, as EBITDA declined by $104/tonne (-28%) to $272/tonne.

Sales in the Steel Solutions and Services segment were $3.5 billion for the three months ended December 31, 2009, an increase of 7% as compared to $3.2 billion for the three months ended September 30, 2009. Sales improved primarily due to higher average steel selling prices (+8%) offset by marginally lower shipments (-1%).

Operating performance in the fourth quarter 2009 was positively impacted by an exceptional gain of $380 million relating to reversal of litigation provisions previously booked in the fourth quarter of 2008.This gain was offset in part by impairment costs of $128 million recorded primarily in ArcelorMittal Construction ($117 million).

Liquidity and Capital Resources

For the three months ended December 31, 2009, net cash provided by operating activities was $2.8 billion, compared to $2.4 billion for the three months ended September 30, 2009. The cash inflow from operating activities for the fourth quarter of 2009 included $1.4 billion generated by operating working capital changes as rotation days¹² decreased from 83 days in the third quarter of 2009 to 63 days in fourth quarter of 2009. The Company expects rotation days to significantly increase in the first quarter of 2010 as activity levels are expected to improve. Cash provided by other operating activities for the three months ended December 31, 2009 amounted to $408 million due primarily to the non-cash charge of the $430 million convertible bond and increase in the Company's true sales of receivables ("TSR") programs, partly offset by a non-cash gain of $90 million relating to hedges on raw material purchases and various cash payments (e.g. VAT, voluntary separation scheme (VSS) and interest payments).

Net cash used in investing activities for the three months ended December 31, 2009 was $0.9 billion, compared to $0.7 billion for the three months ended September 30, 2009. Capital expenditures increased to $0.8 billion for the three months ended December 31, 2009 as compared to $0.6 billion for the three months ended September 30, 2009. The Company expects capital expenditure of approximately $4.0 billion in 2010. Capital expenditures for full year 2009 decreased to $2.8 billion as compared to $5.5 billion for full year 2008.

During the fourth quarter of 2009, the Company paid dividends amounting to $335 million, which included $283 million paid to ArcelorMittal shareholders and $52 million to non-controlling (minority) shareholders in subsidiaries. ArcelorMittal also pre-paid maturing debt amounting to $2.2 billion.

On October 1, 2009, ArcelorMittal priced an issuance of $1 billion principal amount of 7% bonds (yielding 7.4%) due 2039. On December 28, 2009, a wholly-owned Luxembourg subsidiary of ArcelorMittal issued and privately-placed a $750 million mandatory convertible bond due May 2011¹³.

At December 31, 2009, the Company's cash and cash equivalents (including restricted cash and short-term investments) amounted to $6.0 billion as compared to $5.9 billion at September 30, 2009. Net debt⁵ at December 31, 2009 was $18.8 billion (as compared with $21.6 billion at September 30, 2009). The reduction in net debt primarily resulted from cash generated from operations. Operating working capital (defined as inventory plus receivables less payables) at December 31, 2009 was $11.9 billion as compared to $13.7 billion at September 30, 2009, due mainly to lower trade accounts receivables and higher trade accounts payables. The Company expects net debt to increase in the first quarter of 2010 primarily due an increase in working capital due to rising activity levels.

The Company had liquidity of $17.2 billion at December 31, 2009, compared with liquidity of $18.4 billion at September 30, 2009, consisting of cash and cash equivalents (including restricted cash and short-term investments) of $6.0 billion and $11.2 billion of available credit lines. As of December 31, 2009, the Company's leverage ratio (net debt to last twelve months EBITDA), which is the ratio used in the Company's principal financing facilities, stood at 3.2X versus 3.3X at September 30, 2009.

Dividend maintained at $0.75 per share for 2010

The Board of Directors has recommended to maintain the Company's base dividend at $0.75 for full-year 2010.

As a consequence, the Board of Directors will submit to a shareholders' vote, at the next annual general meeting, a proposal to maintain the quarterly dividend payment at $0.1875. The dividend payments would occur on a quarterly basis for the full year 2010, on March 15, 2010, June 14, 2010, September 13, 2010 and December 15, 2010, taking into account that the first quarter dividend payment to be paid on March 15, 2010 shall be an interim dividend.

Final payment of current year dividend of $0.1875 per share was made on December 14, 2009.

Update on management gains, fixed cost reduction program and capacity utilisation

The Company has met its target to achieve management gains of $2 billion of sustainable SG&A and fixed cost reductions in 2009 ahead of schedule. As of the end of the fourth quarter of 2009, the Company had achieved annualized sustainable savings of $2.7 billion. The Company has also achieved $5.0 billion ($4.3 billion at a constant dollar¹⁴) of annualized temporary fixed cost savings in Q4 2009 resulting from industrial optimization in response to lower demand.

Capacity utilisation increased to approximately 70% in the fourth quarter of 2009, as compared to approximately 61% in the third quarter of 2009, and is expected to increase gradually to approximately 75% in the first quarter of 2010.

For further information about each of these recent developments, please refer to our website www.arcelormittal.com

First quarter of 2010 outlook

The first quarter of 2010 EBITDA is expected to be approximately $1.8 – $2.2 billion. Shipments are expected to be higher during the first quarter of 2010 as compared to the fourth quarter of 2009, but this increase is expected to be offset by slightly lower average selling prices and increased costs. The Company also expects net debt to increase in the first quarter of 2010.

1. Total of all finished production of fines, concentrate, pellets and lumps (includes share of production and strategic long-term contracts).
2. Includes own share of production from Hibbing (USA-62.30%), Wabush (Canada-28.57%) and Pena (Mexico-50%). On October 9, 2009, ArcelorMittal entered into an agreement to divest its non-controlling (minority) interest in Wabush Mines in Canada. The transaction was completed in February 2010.
3. Long-term supply contract with Cleveland Cliffs; prices are formula based.
4. Includes Andrade mine operated by Vale until November 15, 2009: prices on a cost plus basis. From November 16, 2009 the mine has been operated by ArcelorMittal and included as captive.
5. Strategic agreement with Sishen/Thabazambi (Africa); prices on a cost plus basis.

1. Strategic agreement – prices on a cost plus basis.
2. Long term lease – prices on a cost plus basis.

Appendix 6 – Details of footnotes

¹The financial information in this press release and Appendix 1 has been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). While the interim financial information included in this announcement has been prepared in accordance with IFRS applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting". Unless otherwise noted the numbers in the press release have not been audited. The financial information and certain other information presented in a number of tables in this press release have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column. In addition, certain percentages presented in the tables in this press release reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers.
²The 2008 financial information presented in this document corresponds to the information as originally released. In accordance with IFRS the Company has adjusted the 2008 financial information retrospectively for the finalization in 2009 of the allocation of purchase price for certain business combinations carried out in 2008. The adjustments will be reflected in the Company's consolidated financial statements for the year ended December 31, 2009. Accordingly, these adjusted comparatives are set forth in the bullets below:

³Lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors.
⁴EBITDA is defined as operating income plus depreciation, impairment expenses and exceptional items.
⁵Net debt refers to long-term debt, plus short term debt, less cash and cash equivalents, restricted cash and short-term investments.
⁶As at September 30, 2008 net debt was $32.5 billion.
⁷During 2009 the Company recorded an exceptional gain of $380 million relating to reversal of litigation costs previously booked in the fourth quarter of 2008 following the Paris Court of Appeals decision to reduce the fine imposed on certain French distribution subsidiaries of ArcelorMittal by the French Competition Authority from euro302 million ($441 million) to euro42 million ($61 million). This gain was offset by exceptional charges amounting to $2.4 billion pre-tax related primarily to write-downs of inventory ($2.1 billion) and provisions for workforce reduction ($0.3 billion). During 2008, the Company had recorded exceptional charges amounting to $6.1 billion consisting of a non-recurring expense of approximately $1.7 billion primarily related to vested post-employment benefits in connection with the entry by ArcelorMittal USA into a new labor contract with its union employees, and exceptional charges amounting to $4.4 billion related to write-downs of inventory and raw material supply contracts, and provisions for workforce reduction and litigation.
⁸Impairment costs for the twelve months ended December 31, 2009 consisted primarily of $237 million on various idled assets (including $92 million relating to the impairment of coke oven assets at Galati, Romania and $65 million at Las Truchas, Mexico), $122 million impairment at various tubular product operations (primarily $65 million in Roman, Romania), and $172 million of other impairments (including $117 million at ArcelorMittal Construction France).
Impairment costs for the three months ended December 31, 2009 of $502 million consist of $169 million on various idled assets (primarily $65 million at Las Truchas, Mexico), $122 million on various tubular product operations (primarily $65 million in Roman, Romania), and $172 million on other impairment assets (primarily $117 million at ArcelorMittal Construction France).
Impairment losses for the three months ended September 30, 2009 had amounted to $62 million relating to impairment on coke oven assets at Galati, Romania.
⁹From 2007 to end of 2009 ArcelorMittal had purchased credits for 19.2 million tonnes and sold credits for 18.6 million tonnes (including 6 million sold during the fourth quarter of 2009).
¹⁰On April 1, 2009 and May 6, 2009, the Company issued approximately $2.5 billion of bonds which are convertible into its shares at the option of the bondholders. Under the terms of the bonds the Company has the option to settle the bonds for shares or for an amount equivalent to the cash value of the shares at the date of the settlement. The Company has determined that the convertible bonds are hybrid instruments as defined by IFRS as the conversion option gives the bondholder the right to put the bond back to the Company. In addition, the Company identified certain components of the contract to be embedded derivatives in accordance with IAS 39. Therefore, the Company separated the embedded derivatives and recorded their fair value at inception ($597 million) as liabilities (reducing net financial debt). At each reporting period, changes in the fair value of the embedded derivatives are recorded to the statement of operations. The charges recorded at the end of the fourth quarter 2009 ($430 million), third quarter 2009 ($110 million) and second quarter 2009 ($357 million) were due primarily to the appreciation of the Company's share price since the issuance of the bonds. As from October 28, 2009 holders of the ArcelorMittal $800 million convertible bonds due 2014 were notified that ArcelorMittal had decided to irrevocably waive the option to deliver the cash value of the shares upon conversion. As a result of this waiver, the embedded derivative recorded as a liability in the amount of $279 million was transferred to equity and hence will no longer affect the statement of operations going forward.
¹¹Foreign exchange and other net financing costs include foreign currency swaps, bank fees, interest on pensions and impairments of financial instruments.
¹²Rotation days are defined as days of accounts receivable plus days of inventory minus days of accounts payable. Days of accounts payable and inventory are a function of cost of goods sold. Days of accounts receivable are a function of sales.
¹³The Company has determined that the obligation to convert the bond into preferred shares of its subsidiary was an equity instrument and accordingly recorded $695 million ($684 million net of fees and tax) as non-controlling interest and $55 million as debt.
¹⁴At average 2008 exchange rate.
¹⁵Amounts are derived from the Company's audited consolidated financial statements for the year ended December 31, 2008.
¹⁶Total of all finished production of fines, concentrate, pellets and lumps (includes share of production and strategic long-term contracts).
¹⁷Steel Solutions and Services shipments are eliminated in consolidation as they represent shipments originating from other ArcelorMittal operating subsidiaries.
¹⁸Changes in operating working capital are defined as trade accounts receivable plus inventories less trade accounts payable.
¹⁹During the second quarter of 2009, the Company distributed $234 million to the non-controlling shareholders in its South African subsidiary by way of a share buy-back. This transaction did not change the Company's percentage ownership of the subsidiary.
²⁰Segmental capex includes the acquisition of intangible assets.
²¹Average steel selling prices are calculated as steel sales divided by steel shipments.
²²Shipments originating from a geographical location.
²³Includes tubular business.
²⁴EBITDA between North America and South America in the third quarter of 2009 has been re-classified by $56 million, but this has no impact at the segment level.
²⁵Commercial paper is expected to continue to be rolled over in the normal course of business.
²⁶Euro denominated loans converted at the Euro: $ exchange rate of 1.4406 as at December 31, 2009
²⁷Gearing is defined as (A) long-term debt, plus short term debt, less cash and cash equivalents, restricted cash and short-term investments, divided by (B) total equity.