Highlights:

• Health and safety performance maintained in 2Q 2013 with a LTIF rate of 0.9x
• EBITDA of $1.7 billion in 2Q 2013, representing a 19% underlying improvement compared to 1Q 2013
• Steel shipments of 21.3 Mt in 2Q 2013, an increase of 1.7% as compared to 1Q 2013
• 2Q 2013 own iron ore production of 15 Mt, up +3.8% YoY; 8.2 Mt shipped and reported at market price, flat YoY
• Net debt decreased to $16.2 billion as of June 30, 2013, driven by improved cash flow from operations ($2.4 billion) and M&A proceeds ($0.3 billion)
• $0.6 billion annualized management gains achieved during 1H 2013, in line with plan to achieve $3 billion of cost improvement by the end of 2015
• Completion of AMMC capacity expansion from 16 Mt to 24 Mt; iron ore production to ramp-up during 2H 2013

Outlook and guidance:

• In line with our guidance framework, underlying profitability is still expected to improve in 2013, driven by three factors: a) a 1-2% increase in steel shipments; b) an approximate 20% increase in marketable iron ore shipments; and c) the realized benefits from Asset Optimization and Management Gains initiatives
• Nevertheless, due largely to lower than forecast apparent demand and lower than anticipated raw material prices, the Company now expects to report 2013 EBITDA greater than $6.5 billion
• Due to an expected investment in working capital and the payment of the annual dividend, net debt is expected to increase in 2H 2013 to approximately $17 billion; the $15 billion medium term net debt target is unchanged
• 2013 capital expenditures are now expected to be approximately $3.7 billion