~2093905

Filed by Mittal Steel Company N.V.

Pursuant to Rule 425 under the United States

Securities Act of 1933, as amended

Subject Company: Arcelor S.A.

Commission File No. of Mittal Steel: 001-14666

Date: August 2, 2006

 

 

 

 

For immediate release

MITTAL STEEL COMPANY N.V. REPORTS SECOND QUARTER AND HALF YEAR RESULTS 2006

Rotterdam, August 2, 2006 - Mittal Steel Company N.V. (“Mittal Steel” or “the Company”), the world’s largest and most global steel company, today announced results for the three months ended June 30, 2006.

Highlights:
(US dollars in millions except per share and shipment data) 
     
 
  2Q 2006  1Q 2006  2Q 2005  1H 2006  1H 2005 
 Shipments (000’ST)  16,763  15,597  12,181  32,360  22,560 
 Sales  $9,230  $8,430  $7,604  $17,660  $14,028 
 Operating income  1,517  1,017  1,391  2,534  3,110 
 Net income  1,015  743  1,090  1,758  2,237 
 Basic Earnings Per Share  1.44  1.06  1.57  2.49  3.35 

The results for 2005 include Mittal Steel USA ISG Inc. (“ISG”), formerly International Steel Group, from April 15, 2005 and the results of Mittal Steel Kryviy Rih, formerly Kryvorizhstal, from November 26, 2005. The results for 2006 include the results of certain Stelco subsidiaries (namely Norambar Inc. and Stelfil Ltée plants located in Quebec and the Stelwire Ltd. plant in Ontario), from February 1, 2006. As a result, prior period results are not entirely comparable.

Commenting, Lakshmi N Mittal, Chairman and CEO Mittal Steel Company, said:

“We are delighted to report a very strong set of results for the second quarter, with operating income increasing some 49% compared with the first quarter. This improvement is due to improved market conditions in all three of our main operating regions. As we anticipated in May, the recovery is now underway in Asia resulting into higher selling prices. Additionally, we have delivered a strong performance in Europe, particularly in the Ukraine where synergies are now being delivered, and in America, where costs have been reduced.

“Looking forward, we expect market conditions to continue to improve, driving further growth in shipments and operating income in the third quarter.

“Meanwhile approximately 92% of Arcelor’s equity holders (on a fully diluted basis) have accepted our offer for the company and we are now focused on achieving a successful integration. The underlying fundamentals for the industry in the long-term remain positive and we are very excited about the potential of the Company.”

 

 

 

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SECOND QUARTER 2006 EARNINGS ANALYST CONFERENCE CALL

Mittal Steel management and Arcelor management will host a combined conference call for members of the investment community to discuss the financial performance of Mittal Steel and Arcelor at 9:00 AM New York time / 2:00 PM London time / 3:00 PM CET on Wednesday, August 2, 2006. The conference call will include a brief question and answer session with senior management. The conference call information is as follows:

Date: Wednesday, August 2nd

Time: 9:00 am New York Time / 2:00 pm London Time / 3:00 pm CET

Dial-In Number from within the U.S.: + 1 866 4327 186

Dial-In Number from within the U.K.: + 44 207 0705 579

For individuals unable to participate in the conference call, a telephone replay will be available until September 1, 2006 at:

International Replay Number: + 44 208 196 1998

Access code 634819#

A web cast of the conference call can also be accessed via www.mittalsteel.com and will be available for one week. Real Player or Windows Media Player will be required in order to access the web cast.

SECOND QUARTER 2006 MEDIA CONFERENCE CALL

Additionally, Arcelor and Mittal Steel will host a joint conference call for media today at:

Date: Wednesday, August 2nd

Time: 8:00 am New York Time / 1:00 pm London Time / 2:00 pm CET

The dial in number: +44 20 7070 5579

 

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Forward-Looking Statements

This document may contain forward-looking information and statements about Mittal Steel Company N.V., Arcelor S.A. and/or their combined businesses after completion of the proposed acquisition. 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 Mittal Steel’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Arcelor’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 Mittal Steel, 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 Netherlands Authority for the Financial Markets and the SEC made or to be made by Mittal Steel, including (in the latter case) on Form 20-F and on Form F-4. Mittal Steel undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

No Offer

No offer to exchange or purchase any Arcelor shares or convertible bonds has been or will be made in The Netherlands or in any jurisdiction other than Luxembourg, Belgium, Spain, France and the United States. This document does not constitute an offer to exchange or purchase any Arcelor shares or convertible bonds. Such an offer is made only pursuant to the official offer document approved by the appropriate regulators.

Important Information

In connection with its proposed acquisition of Arcelor S.A., Mittal Steel has filed important documents (1) in Europe, with the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg, the Commission Bancaire, Financière et des Assurances (CBFA) in Belgium, the Comisión Nacional del Mercado de Valores (CNMV) in Spain and the Autorité des marchés financiers (AMF) in France, including local versions of the Information Document approved by the CSSF, the CBFA and the AMF (AMF approval no. 06-139) on May 16, 2006 and by the CNMV on May 22, 2006 and local versions of supplements thereto approved by such regulators on May 31, 2006 (AMF approval no. 06-169) and July 4, 2006 (AMF no. 06-250), and a Share Listing Prospectus approved by the Autoriteit Financiële Markten (AFM) in The Netherlands on May 16, 2006 and supplements thereto approved by the AFM on May 31, 2006, June 23, 2006, July 4, 2006, and July 5, 2006 and (2) with the Securities and Exchange Commission (SEC) in the United States, including a registration statement on Form F-4, a Prospectus for the exchange offer, dated June 7, 2006, an Amended and Restated Exchange Offer Prospectus, dated June 29, 2006, a prospectus supplement dated July 7, 2006, and related documents. Investors and Arcelor security holders outside the United States are urged to carefully read the Information Document and the Share Listing Prospectus, including the supplements thereto, which together contain all relevant information in relation to the Offer. Investors and Arcelor security holders in the United States are urged to carefully read the registration statement on Form F-4, the Amended and Restated Exchange Offer Prospectus, the prospectus supplement thereto, and related documents. All such documents contain important information. Investors and Arcelor security holders may obtain copies of such documents free of charge on Mittal Steel’s website at www.mittalsteel.com. In addition, the French version of the Information Document is available on the AMF’s website at www.amf-france.org, the Spanish version of the Information Document is available on the CNMV’s website at www.cnmv.es, and the registration statement on Form F-4, the Amended and Restated Prospectus, the prospectus supplement thereto and related documents are available on the SEC’s website at www.sec.gov.

 

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For further information, visit our web site: www.mittalsteel.com, or call:

Mittal Steel Company N.V.    Mittal Steel Company N.V. 
Julien Onillon,    Thomas A. McCue, 
Director, Investor Relations    Director, North American Investor Relations 
+44 (0)20 7543 1136    (and Treasurer Mittal Steel USA) 
    +1 312 899 3927 
Mittal Steel Company N.V.     
Do-hyun AN,     
Manager, Investor Relations     
+44 (0)20 7543 1150     

 

 

 


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MITTAL STEEL COMPANY N.V. REPORTS
SECOND QUARTER 2006 RESULTS

Mittal Steel Company N.V. (New York: MT; Amsterdam: MT; Madrid: MTS; Paris: MTP; Brussels: MTBL; Luxembourg: MT), net income for the three months ended June 30, 2006, was $1.0 billion or $1.44 per share, as compared with net income of $743 million or $1.06 per share for the three months ended March 31, 2006, and $1.1 billion or $1.57 per share for the three months ended June 30, 2005.

Consolidated sales and operating income for the three months ended June 30, 2006, were $9.2 billion and $1.5 billion, respectively, as compared with $8.4 billion and $1.0 billion, respectively, for the three months ended March 31, 2006, and as compared with $7.6 billion and $1.4 billion, respectively, for the three months ended June 30, 2005.

Total steel shipments1 for the three months ended June 30, 2006, were 16.8 million tons as compared with 15.6 million tons for the three months ended March 31, 2006, and 12.2 million tons for the three months ended June 30, 2005.

Group inter-company transactions have been eliminated in financial consolidation. The financial information in this press release has been prepared based on accounting principles generally accepted in the United States of America (“US GAAP”). Appendix 1 includes reconciliation from US GAAP to International Financial Reporting Standards as endorsed by the European Union (“IRFS”) and Appendix 4 includes financial information prepared on the basis of IFRS.

Analysis of operations

The following analysis of operations includes Mittal Steel USA ISG Inc. (“ISG”), formerly International Steel Group, from April 15, 2005, the results of Mittal Steel Kryviy Rih, formerly Kryvorizhstal (Ukraine), from November 26, 2005, and the results of certain former Stelco subsidiaries (namely Norambar Inc. and Stelfil Ltée plants located in Quebec and the Stelwire Ltd. plant in Ontario), from February 1, 2006. As a result, prior period results are not entirely comparable.

Steel shipments in the three months ended June 30, 2006, were higher by 7% as compared with the three months ended March 31, 2006, primarily due to improved market conditions for our products and improved sales volumes at Mittal Steel Kryviy Rih. Steel shipments for the three months ended June 30, 2006, were 38% higher as compared with the three months ended June 30, 2005, due primarily to the inclusion of ISG and Mittal Steel Kryviy Rih (16% higher excluding ISG and Mittal Steel Kryviy Rih).

Average selling prices in the three months ended June 30, 2006, were higher by 3% as compared with the three months ended March 31, 2006, due to an improved market. However, average selling prices in the three months ended June 30, 2006, were lower by 7% as compared with the three months ended June 30, 2005 (4% lower excluding ISG and Mittal Steel Kryviy Rih).

Average cost of sales (excluding depreciation) per ton during the three months ended June 30, 2006, were lower by 2% as compared with the three months ended March 31, 2006, primarily due to improved steel production. Average cost of sales (excluding depreciation) per ton during the three months ended June 30, 2006, was lower by 6% as compared with the three months ended June 30, 2005, due primarily to the lower cost base of Mittal Steel Kryviy Rih relative to Mittal Steel’s other operations (1% lower excluding ISG and Mittal Steel Kryviy Rih).

Selling, general and administrative expenses in the three months ended June 30, 2006, decreased by 8% as compared with the three months ended March 31, 2006, primarily due to capitalized mergers and acquisition related expenses included in first quarter 2006. In the three months ended June 30, 2006, selling, general and administrative expenses decreased by

1 Total steel shipments include inter-company shipments.
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2% as compared with the three months ended June 30, 2005 (14% lower excluding ISG and Mittal Steel Kryviy Rih).

Other operating income for the three months ended June 30, 2006, was $52 million which includes $34 million reversal of certain provisions in Europe and $6 million worth of CO2 emissions sales in Europe. This compares to $19 million for the three months ended March 31, 2006, which includes $31 million of CO2 emission sales in Europe. There was no other operating income for the three months ended June 30, 2005.

Operating income for the three months ended June 30, 2006, was $1.5 billion as compared with $1.0 billion for the three months ended March 31, 2006. Operating income for the three months ended June 30, 2005, was $1.4 billion.

Other income (expense)-net for the three months ended June 30, 2006, was $3 million as compared with $7 million for the three months ended March 31, 2006. Other income (expense)-net for the three months ended June 30, 2005, was $35 million, which included a gain from sale of property and dividends from our investments.

Income from equity method investments for the three months ended June 30, 2006, was $13 million as compared with $25 million for the three months ended March 31, 2006. Income from equity method investments were $32 million for the three months ended June 30, 2005.

Net interest expense for the three months ended June 30, 2006, declined to $102 million as compared with $110 million for the three months ended March 31, 2006, following an overall reduction in net debt. Net interest expense for the three months ended June 30, 2005, was $55 million.

Income tax expense for the three months ended June 30, 2006, amounted to $370 million as compared with $116 million for the three months ended March 31, 2006. The effective tax rate for the three months ended June 30, 2006, was 25% as compared with 12% for three months ended March 31, 2006. The effective tax rate for the three months ended March 31, 2006 was lower primarily due to the release of valuation allowances of $107 million. Income tax expense for the three months ended June 30, 2005, amounted to $165 million with an effective tax rate of 12%.

Net income for the three months ended June 30, 2006, increased to $1,015 million as compared with the three months ended March 31, 2006, of $743 million. Net income for the three months ended June 30, 2006, was lower as compared with $1,090 million for the three months ended June 30, 2005, owing to the reasons discussed above.

Americas

Total steel shipments in the Americas region were 6.9 million tons in the three months ended June 30, 2006, as compared with 6.8 million tons for the three months ended March 31, 2006, primarily due to improved market conditions for our products particularly in our Mexican operations. The effect of these improved market conditions was partly offset by reduced shipments at Mittal Steel USA resulting from a fire in its Indiana Harbor facility in East Chicago on April 28, 2006, which halted production in one of the steelmaking shops. This decreased steel production by approximately 200,000 tons and at Mittal Steel USA’s Sparrows Point facility which faced severe production issues following a lightning strike at an electrical substation during a storm on June 23, 2006. The Mittal Steel USA’s Sparrows Point facility is expected to lose approximately 250,000 tons of ironmaking as a result of the incident. The damage to equipment and losses associated with business interruption in excess of the Company’s deductible is to be covered by insurance in both instances.

Total steel shipments were higher in the three months ended June 30, 2006, as compared with 5.4 million tons for the three months ended June 30, 2005, primarily due to the inclusion of ISG. Excluding the impact of ISG, total steel shipments were higher in the three months ended June 30, 2006, at 3.0 million tons, as compared with 2.6 million tons for the three months ended June 30, 2005.

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Sales were higher at $4.2 billion for the three months ended June 30, 2006, as compared with $4.1 billion for the three months ended March 31, 2006, primarily as a result of increased shipments and a marginal increase in selling prices. Sales were higher in the three months ended June 30, 2006, as compared with $3.5 billion for the three months ended June 30, 2005, primarily due to the inclusion of ISG, with increased shipments offset by marginally lower selling prices. Excluding the impact of ISG, sales were higher at $1.6 billion in the three months ended June 30, 2006, as compared with $1.5 billion for the three months ended June 30, 2005.

Operating income was higher at $448 million for the three months ended June 30, 2006, as compared with $340 million for the three months ended March 31, 2006, primarily due to higher volumes and marginally higher average selling prices, as well as lower costs. Operating income for the three months ended June 30, 2006, remained flat as compared with the three months ended June 30, 2005, as the impact of higher shipments and lower cost of sales was offset by lower selling prices. Excluding the impact of ISG, operating income was lower at $173 million for the three months ended June 30, 2006, as compared with $270 million for the three months ended June 30, 2005.

Europe

Total steel shipments in the European region were 6.8 million tons for the three months ended June 30, 2006, as compared with 5.8 million tons for the three months ended March 31, 2006. Total steel shipments were higher in the three months ended June 30, 2006, as compared with 4.0 million tons for the three months ended June 30, 2005, primarily due to the inclusion of Mittal Steel Kryviy Rih. Excluding Mittal Steel Kryviy Rih, total steel shipments in the European region were higher at 4.8 million tons for the three months ended June 30, 2006, as compared with 4.0 million tons for the three months ended June 30, 2005.

Sales were higher at $3.5 billion in the three months ended June 30, 2006, as compared with $2.9 billion for the three months ended March 31, 2006, primarily due to improved shipments in our Ukrainian operations and higher selling prices. Sales were higher in the three months ended June 30, 2006, as compared to $2.6 billion for the three months ended June 30, 2005, primarily due to the inclusion of Mittal Steel Kryviy Rih as well as improved shipments in our Czech and Polish operations, the effect of which was partially offset by reduced selling prices primarily in our German and French operations. Excluding Mittal Steel Kryviy Rih, sales were higher at $2.7 billion in the three months ended June 30, 2006, as compared with $2.6 billion for the three months ended June 30, 2005, due to higher shipments partially offset by lower selling prices.

Operating income was higher at $719 million for the three months ended June 30, 2006 as compared with $344 million for the three months ended March 31, 2006, primarily due to higher volumes, higher selling prices and marginally lower costs. Operating income for the three months ended March 31, 2006 also includes $56 million from the reduction of customer rebates. Operating income for the three months ended June 30, 2006, was higher as compared with $263 million for the three months ended June 30, 2005 primarily due to higher volumes and lower costs offset by reduced selling prices as well as the inclusion of Mittal Steel Kryviy Rih. Excluding Mittal Steel Kryviy Rih, operating income was higher at $501 million for the three months ended June 30, 2006, as compared with $263 million for the three months ended June 30, 2005.

Asia & Africa

Total steel shipments in the Asia & Africa region were 3.1 million tons in the three months ended June 30, 2006, as compared with 3.0 million tons for three months ended March 31, 2006 and 2.7 million tons for the three months ended June 30, 2005.

Sales were higher at $1.7 billion in the three months ended June 30, 2006, as compared with $1.6 billion for the three months ended March 31, 2006 primarily due to higher volumes and selling prices. Sales were lower in the three months ended June 30, 2006, as compared with $2.1 billion for the three months ended June 30, 2005 primarily due to higher shipments offset by lower selling prices.

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Operating income was higher at $326 million for the three months ended June 30, 2006, as compared with $282 million for the three months ended March 31, 2006, primarily due to higher shipments and selling prices partially offset by increased costs. Operating income for the three months ended June 30, 2006 was lower as compared with $678 million for the three months ended June 30, 2005, primarily due to higher shipments offset by lower selling prices and higher costs.

Liquidity / Capital resources

The Company’s liquidity position remains strong. As of June 30, 2006, the Company’s cash and cash equivalents including restricted cash and short-term investments were $3.2 billion ($2.2 billion at March 31, 2006). Restricted cash at June 30, 2006 includes $987 million in respect of cash collateral provided for a bank guarantee in connection with the Arcelor offer. In addition, the Company, including its operating subsidiaries, had available borrowing capacity of $2.2 billion at June 30, 2006, as compared with $2.3 billion at March 31, 2006.

For the three months ended June 30, 2006, net cash provided by operating activities was $1,719 million, as compared with $388 million for the three months ended March 31, 2006, primarily due to the increase in trade accounts payables and improvements in trade account receivables. For the three months ended June 30, 2005, net cash provided by operating activities was $983 million. Net working capital (inventory plus accounts receivable plus prepaid expenses minus accounts payable minus accrued expenses and other liabilities) improved by $285 million.

As of June 30, 2006 the Company’s net debt (which includes long-term debt plus short-term debt less cash and cash equivalents, short term investments and restricted cash) declined by $1.1 billion to $5.1 billion as compared to $6.2 billion at March 31, 2006.

Capital expenditure during the three months ended June 30, 2006, was $348 million as compared with $263 million for the three months ended March 31, 2006, and $255 million for the three months ended June 30, 2005.

Depreciation during the three months ended June 30, 2006, was $261 million as compared with $287 million for the three months ended March 31, 2006. Depreciation during the three months ended June 30, 2006, was higher as compared with $192 million for the three months ended June 30, 2005 (primarily due to inclusion of ISG and Mittal Steel Kryviy Rih).

As previously announced, Mittal Steel will pay a US$ 0.125 per share quarterly dividend on September 15, 2006.

During the three months ended June 30, 2006, Mittal Steel paid interim dividends of $105 million which includes a $17 million dividend payment to the Ukraine government. During the three months ended March 31, 2006, Mittal Steel paid interim dividends of $136 million (including $48 million of dividends paid to minority shareholders at Mittal Steel’s South African subsidiary).

On April 1, 2006, Ispat Inland ULC redeemed $150 million of floating rate notes bearing interest at LIBOR plus 6.75% due April 1, 2010. The floating rate notes were redeemed at a price of 103.0% of the principal amount (the call premium of $4.5 million was expensed in the three months ended March 31, 2006).

On April 4, 2006, Mittal Steel signed a $200 million loan agreement with the European Bank for Reconstruction and Development for on-lending to Mittal Steel Kryviy Rih. The loan has a maturity of seven years and bears interest based on LIBOR plus a margin based on a ratings grid. Drawdown of this facility took place on May 10, 2006.

On April 20, 2006, the Pension Benefit Guaranty Corporation (“PBGC”) converted the entire $35 million outstanding principal amount plus accrued interest of the convertible note issued by ISG into 1,268,719 class A common shares of Mittal Steel.

On May 23, 2006, the Company entered into a €2.8 billion (approximately $3.4 billion) credit agreement to finance (together with a €5.0 billion (approximately $6.1 billion) credit

Page 9 of 24

agreement entered into on January 30, 2006 with the same group of lenders) the cash portion of the offer for Arcelor.

Mittal Steel’s $3.5 billion Bridge financing facility used for the Mittal Steel Kryviy Rih acquisition has been repaid in full on June 26, 2006 with the proceeds of the Company’s €3.0 billion credit agreement. This Bridge facility was subsequently cancelled.

Recent Developments

• On July 26, 2006 Mittal Steel Company N.V. announced the final results of the initial offering period of its offer for Arcelor securities, which expired on July 13 in Belgium, France, Luxembourg, Spain and the U.S. As of such date, in the aggregate:
 
•
 594,549,753 Arcelor shares have been tendered (including Arcelor shares underlying Arcelor ADSs tendered in the U.S. offer); and
 
•
 9,858,533 Arcelor convertible bonds (OCEANEs 2017) have been tendered; represent, on a fully-diluted basis, 91.88% of Arcelor’s share capital and 91.97% of Arcelor’s voting rights.
• As a result, 665.6 million new Mittal Steel shares will be issued as consideration for the offer and the cash portion of the total offer consideration will be approximately €7.78billion.
  The cash portion of the offer was financed with cash resources available to the Company,i.e., its €5 billion credit facility and its €2.8 million bridge facility. Both of these facilities were entered into to finance the cash portion of the offer.
  In addition, the settlement of the offer made in the initial offering period, the delivery of the Mittal Steel shares offered, the payment of the cash consideration and the listing of the new Mittal Steel shares issued as consideration on Euronext Amsterdam, Euronext Brussels, Euronext Paris, the Luxembourg Stock Exchange, the New York Stock Exchange and the stock exchanges of Barcelona, Bilbao, Valencia and Madrid, occurred on August 1,2006.
  Pursuant to Luxembourg and Belgian laws, the Company has commenced a subsequent offering period of the offer in Belgium, France, Luxembourg, Spain and the U.S., lasting from July 27, 2006 to August 17, 2006. The subsequent offering period will have the same terms and conditions as the initial offering period that ended on July 13, 2006 (except forthe minimum tender condition, which has already been met).
  Pursuant to Luxembourg law, after the end of the subsequent offering period, Arcelor's remaining shareholders will be entitled to initiate proceedings to sell their shares to Mittal Steel. Consideration for such sale may be, at the discretion of Mittal Steel, either the same consideration as offered in the offer, with the cash secondary offer being uncapped, or a cash option only at a price of Euros 40.40 per Arcelor share. This sell-outright must be exercised during the three-month period starting on August 18, 2006 and ending on November 17, 2006. A further press release will detail the terms and conditions of this sell-out right.
• Following the announcement of the final results of the offer, on July 26, 2006 Standard & Poor’s lowered its long-term corporate credit rating on the Company from “BBB+” to“BBB” and removed the rating from CreditWatch with negative implications.

Outlook for third quarter 2006
Operating income is expected to increase by approximately 25% in Q306 on Q206 levels.

 

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MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION (UNDER US GAAP)

MITTAL STEEL COMPANY N.V. CONSOLIDATED BALANCE SHEETS

Balance sheet        As of     
    June 30,    March 31,   
December 31, 
In millions of US dollars    2006    2006    2005 
   
(Unaudited) 
(Unaudited) 
  (Audited) 
ASSETS             
Current Assets             
   Cash and cash equivalents    $ 2,121    $ 2,051    $ 2,035 
   Restricted cash    1,054    85    100 
   Short-term investments    14    15    14 
   Trade accounts receivable – net    2,895    2,957    2,287 
   Inventories    5,856    5,839    6,036 
   Prepaid expenses and other    1,022    1,116    1,040 
       current assets             
   Deferred tax assets    195    174    200 
Total Current Assets    13,157    12,237    11,712 
 
   Property, plant and equipment –    15,329    15,555    15,539 
       net             
   Investments in affiliates and    1,154    1,178    1,187 
       joint ventures             
   Deferred tax assets    914    885    785 
   Goodwill and intangible assets    1,898    1,671    1,439 
   Other assets    343    357    380 
   
Total Assets    $32,795    $31,883    $31,042 
 
LIABILITIES AND SHAREHOLDERS’ 
           
EQUITY             
Current Liabilities             
   Payable to banks and current    $ 169    $ 376    $ 334 
       portion of long-term debt             
   Trade accounts payable    2,617    2,482    2,504 
   Accrued expenses and other    2,865    2,701    2,661 
       current liabilities             
   Deferred tax liabilities    160    140    116 
   
Total Current Liabilities    5,811    5,699    5,615 
   
   Long-term debt, net of current    8,089    7,940    7,974 
       portion             
   Deferred tax liabilities    1,463    1,445    1,602 
   Deferred employee benefits    2,606    2,634    2,506 
   Other long-term obligations    1,268    1,385    1,361 
   
Total Liabilities    19,237    19,103    19,058 
 
Minority Interest    2,015    1,904    1,834 
 
Shareholders’ Equity             
   Common shares    60    60    60 
   Treasury stock    (90)    (110)    (111) 
   Additional paid-in capital    2,479    2,458    2,456 
   Retained earnings    9,470    8,543    7,891 
   Accumulated other    (376)    (75)    (146) 
       comprehensive income (loss)             
Total Shareholders’ Equity    11,543    10,876    10,150 
Total Liabilities and Shareholders’ 
  $32,795    $31,883    $31,042 
Equity             

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MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION (UNDER US GAAP)

MITTAL STEEL COMPANY N.V. CONSOLIDATED STATEMENTS OF INCOME DATA & OTHER INFORMATION

    Three Months Ended    Six Months Ended 
   
 In millions of US dollars, except   
June 30, 
March 31, 
June 30, 
June 30, 
June 30, 
 shares, per share and shipment data   
2006 
2006 
2005 
2006 
2005 
   
Unaudited 
Unaudited 
Unaudited 
Unaudited 
Unaudited 
   
 
 STATEMENTS OF INCOME DATA                     
 Sales    $ 9,230    $ 8,430    $ 7,604    $ 17,660    $ 14,028 
 Costs and expenses:                     
       Cost of sales (exclusive of    7,237    6,854    5,748    14,091    10,037 
               depreciation shown separately) 
                   
       Depreciation    261    287    192    548    355 
       Selling, general and administrative
               expenses   
  267    291    273    558    526 
       Other operating (income) expense 
  (52)    (19)    -    (71)    - 
           - net   
    7,713    7,413    6,213    15,126    10,918 
 Operating income    1,517    1,017    1,391    2,534    3,110 
 Operating margin    16.4%    12.1%    18.3%    14.3%    22.2% 
 Other income (expense) – net    3    7    35    10    40 
 Income from equity method    13    25    32    38    47 
 investments                     
 Financing costs:                     
       Interest (expense)    (142)    (130)    (88)    (272)    (146) 
       Interest income    40    20    33    60    58 
       Net gain (loss) from foreign    75    5    4    80    17 
           exchange transactions   
    (27)    (105)    (51)    (132)    (71) 
 Income before taxes and minority    1,506    944    1,407    2,450    3,126 
 interest                     
 Income tax expense:                     
       Current    281    151    161    432    451 
       Deferred    89    (35)    4    54    111 
                     
   
    370    116    165    486    562 
   
 Income before minority interest    1,136    828    1,242    1,964    2,564 
   
 Minority interest    (121)    (85)    (152)    (206)    (327) 
   
 Net income    $ 1,015    $ 743    $ 1,090    $ 1,758    $ 2,237 
 Basic earnings per common share    $1.44    $1.06    $1.57    $2.49    $3.35 
 Diluted earnings per common share    1.44    1.05    1.57    2.49    3.35 
 Weighted average common shares    705    704    695    705    669 
 outstanding (in millions)                     
 Diluted weighted average common    706    706    695    706    669 
 shares outstanding (in millions)                     
                     
Page 12 of 24

OTHER INFORMATION             
Total shipments of steel products    16,763  15,597  12,181  32,360  22,560 
including inter-company shipments             
(thousands of short tons)             
             

 

 

 

 


Page 13 of 24

MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION (UNDER US GAAP)

MITTAL STEEL COMPANY N.V. CONSOLIDATED STATEMENTS OF CASH FLOWS

    Three Months Ended    Six Months Ended 
 In millions of US dollars   
June 30, 
March 31, 
June 30, 
June 30, 
June 30, 
    2006    2006    2005    2006    2005 
   
(Unaudited) 
(Unaudited) 
(Unaudited) 
(Unaudited) 
(Unaudited) 
   
 Operating activities:                     
 Net income    $ 1,015    $ 743    $ 1,090    $ 1,758    $ 2,237 
Adjustments to reconcile net 
                   
income to net cash provided 
                   
 by operations:                     
       Depreciation    261    287    192    548    355 
       Net accretion of purchased intangibles    (101)    (89)    (42)    (190)    (42) 
       Net foreign exchange loss (gain)    32    (3)    (7)    29    (12) 
       Deferred income tax    89    (35)    (17)    54    90 
       Income from equity method    (31)    (24)    -    (55)    - 
               investment                     
       Distribution from equity    13    12    (14)    25    (24) 
               method investments 
                   
       Loss (gain) on sale of    14    2    (15)    16    (15) 
               property plant & equipment 
                   
       Minority interest    121    85    152    206    327 
       Other non cash operating    (18)    (29)    (22)    (47)    (10) 
               activities (net)                     
Changes in operating assets 
                   
and liabilities, net of effects 
                   
 from acquisitions:                     
       Trade accounts receivable    2    (544)    448    (542)    274 
       Short-term investments    -    -    (8)    -    (8) 
       Inventories    (64)    308    210    244    (105) 
       Prepaid expenses and other assets   11    (14)    (141)    (3)    (228) 
       Trade accounts payable    188    (104)    (542)    84    (621) 
       Accrued expenses and other liabilities    148    (211)    (151)    (63)    (124) 
       Deferred employee benefit costs    39    4    (150)    43    (146) 
 Net cash provided by    1,719    388    983    2,107    1,948 
 operating activities                     
 Investing activities:                     
       Purchase of property, plant    (348)    (263)    (255)    (611)    (460) 
               and equipment 
                   
       Proceeds from sale of assets    15    4    37    19    29 
               and investments 
                   
               including affiliates and                     
               joint ventures                     
       Acquisition of net assets of    (2)    (32)    (1,306)    (34)    (1,306) 
               subsidiaries, net of cash                     
               acquired                     
       Investments in affiliates and    3    1    22    4    22 
               joint ventures - net 
                   
 
       Restricted cash    (969)    15    (97)    (954)    (542) 
 
Page 14 of 24                     

Other investing activities 
  11    (3)    (1)    8    (1) 
           (net)                     
Net cash used in investing    (1,290)    (278)    (1,600)    (1,568)    (2,258) 
activities                     
Financing activities:                     
   Proceeds from payable to banks 
  33    13    824    46    1,344 
   Proceeds from long-term debt
  4,183    179    3,080    4,362    3,099 
   Debt issuance cost    (57)    -    (10)    (57)    (10) 
   Payments of payable to banks 
  (108)    (20)    (707)    (128)    (1,215) 
   Payments of long-term debt 
  (4,222)    (165)    (1,208)    (4,387)    (1,324) 
   Purchase of treasury stock 
  -    1    -    1    - 
   Sale of treasury stock for 
  3    (2)    4    1    6 
           stock option exercised                     
   Dividends paid (includes $48 
  (105)    (136)    (1,375)    (241)    (1,801) 
           of dividend paid to                     
           minority shareholders                     
           during the first quarter                     
           2006; $nil for second                     
           quarter 2005 and $150                     
           for the first quarter 2005)                       
Other financing activities (net) 
  -    -    (18)    -    (18) 
Net cash provided by (used in) 
  (273)    (130)    590    (403)    81 
financing activities                     
Net increase (decrease) in    156    (20)    (27)    136    (229) 
cash and cash equivalents                     
Effect of exchange rate    (86)    36    (95)    (50)    (217) 
changes on cash                     
Cash and cash equivalents: 
                   
   At the beginning of the period
  2,051    2,035    2,171    2,035    2,495 
   
   At the end of the period 
  $2,121    $2,051    $2,049    $2,121    $2,049 

Page 15 of 24

Mittal Steel Company N.V.
Appendix 1 – Quarter 2 2006
Unaudited Reconciliation of US GAAP financials to IFRS

US GAAP to IFRS reconciliation

The Company considers US GAAP as its primary GAAP. The statutory financial statements of Mittal Steel are prepared in accordance IFRS. To provide an understanding of the differences between US GAAP and IFRS, the effect on consolidated shareholders’ equity and net income are described in the following table and notes:

    June 30, 2006    June 30, 2005 
 
Shareholders’ equity as reported in accordance with US    $11,543    $9,190 
Minority GAAP interest as reported in accordance with US GAAP    2,015    1,756 
    13,558    10,946 
Adjustments recorded to comply with IFRS         
   Employee benefits (see note 1)    1,349    1,020 
   Business combinations (see note 2)    3,219    3,625 
   Other (see note 3)    1    1 
   Tax effect on the above (see note 4)    (1,286)    (1,081) 
Total increase    3,283    3,565 
Total equity as reported in accordance with IFRS    $16,841    $14,511 
 
   
Six months 
Six months 
   
ended June 30, 
ended June 30, 
   
2006 
2005 
 
Net income as reported in accordance with US GAAP    $1,758    $2,237 
Minority interest as reported in accordance with US GAAP    206    327 
Total under US GAAP (including minority interest)    1,964    2,564 
Adjustments recorded to comply with IFRS         
   Employee benefits (see note 1)    (21)    (14) 
   Business combinations (see note 2)    (225)    17 
   Other (see note 3)    (23)    (4) 
   Tax effect on the above (see note 4)    4    28 
Total (decrease) / increase    (265)    27 
Net income as reported in accordance with IFRS    $1,699    $2,591 

Notes to the reconciliation from US GAAP to IFRS 

1) Employee benefits 

Under US GAAP past service cost is amortized over the remaining working lives for both vested and unvested rights, whereas under IFRS only unvested rights remain unrecognized. Under US GAAP a company is required to recognize a minimum pension liability if certain conditions have been met. IFRS does not require such a minimum pension liability.

2) Business combinations

Under US GAAP, negative goodwill is deducted, on a pro-rata basis, from the value of the non-current assets acquired, primarily property, plant and equipment. Under IFRS negative goodwill is directly recognized in the income statement. Because the carrying amount of non current assets is higher under IFRS, the depreciation in the income statement increases proportionally.

Page 16 of 24

Under IFRS, the requirements for including a restructuring provision in the liabilities assumed in a business combination are more stringent than under US GAAP. In 2006 additional purchase accounting liabilities were recorded, which do not qualify for IFRS. Also additional values were assigned to assets acquired and liabilities assumed, which were equal for IFRS and US GAAP. As the adjustment to assets acquired exceeded the adjustment to liabilities assumed, additional negative goodwill income was recognized to an amount of $51 million (net of tax). The difference is included in opening equity in accordance with IFRS 3. As a consequence, expenses recorded against the provision under US GAAP are expensed under IFRS.

3) Other

Other adjustments relate mostly to measurement of inventory. Under IFRS inventory is measured on the basis of First In – First Out (FIFO). Under US GAAP the Company measures certain inventory on the basis of Last In – First Out (LIFO). This measurement is adjusted for IFRS.

4) Deferred income tax

Under US GAAP, negative goodwill is deducted, on a pro-rata basis, from the value of the non-current assets acquired, primarily property, plant and equipment. A corresponding tax asset for the temporary difference created is recorded, less a valuation allowance, if applicable. Under IFRS, negative goodwill is directly recognized in the income statement with no tax asset recorded.

 

 

 

 

Page 17 of 24

Mittal Steel Company N.V. 
Appendix 2 – Quarter 2 2006 
Shipments by country (Thousands of short tons) 

    Three Months Ended 
   
June 30, 2006 
March 31, 2006
June 30, 2005 
Americas   
United States of America    5,095    5,154    3,799 
Mexico    1,005    937    1,073 
Canada    538    466    357 
Trinidad    226    193    194 
   
TOTAL AMERICAS    6,864    6,750    5,423 
   
Europe             
West Europe (Germany and France)    1,003    970    798 
Poland    1,337    1,321    1,052 
Romania    1,309    1,251    1,399 
Czech Republic    836    833    555 
Ukraine    2,022    1,289    - 
Others    276    176    237 
   
TOTAL EUROPE    6,783    5,840    4,041 
   
Asia and Africa             
Kazakhstan    983    915    790 
South Africa    1,802    1,761    1,652 
Algeria    331    331    275 
   
TOTAL ASIA AND AFRICA    3,116    3,007    2,717 
   
MITTAL STEEL COMPANY N.V.    16,763    15,597    12,181 
   

Page 18 of 24


 Mittal Steel Company N.V. 
 Appendix 3- Quarter 2 2006 
 Key Financial and operational 
 information (Under US GAAP) 
 
 Amounts in millions of US dollars   
Americas 
Europe 
Asia & 
Elimination 
Mittal 
 unless otherwise stated   
Africa 
Steel 
   
(Unaudited) 
(Unaudited)
(Unaudited) 
(Unaudited) 
(Unaudited) 
 Financial Information   
 Sales    $4,200    $3,480    $1,744    $(194)    $9,230 
 
 Cost of sales (exclusive of    3,556    2,597    1,279    (195)    7,237 
 depreciation)                     
 
 Gross profit (before deducting depreciation)      644    883    465    1    1,993 
 Gross margin (as percentage of sales)    15.3%    25.4%    26.7%        21.6% 
 
 Depreciation    115    80    66    -    261 
 Selling, general and administrative    81    134    75    (23)    267 
 expenses                     
 Other Operating Expenses (Income)    -    (50)    (2)    -    (52) 
 
 Operating income    448    719    326    24    1,517 
 Operating margin (as percentage of sales)    10.7%    20.7%    18.7%        16.4% 
 
 EBITDA*    561    914    461    (67)    1,869 
 EBITDA margin ( as percentage of sales)      13.4%    26.3%    26.4%        20.2% 
 
 Capital expenditure    113    135    100    -    348 
 
 Operational Information                     
 Liquid Steel Production ('000 MT)    7,001    6,498    3,176        16,675 
 Liquid Steel Production ('000 ST)    7,718    7,163    3,501        18,382 
 
 Shipments ('000 MT)    6,227    6,153    2,827        15,207 
 Shipments ('000 ST)    6,864    6,783    3,116        16,763 
 
 Employees    25,300    125,900    69,400        220,600 
                     
* EBITDA is income before tax and minority interest plus interest plus depreciation 
• Shipment numbers include intercompany shipments.
• Sales as per statement of income above, includes other non-steel product sales (rawmaterials etc) and other sales (non-product). When computing average selling prices only steel sales are considered.
• Sales and cost of sales include shipping and handling fees as per EITF Issue No. 00-10.

 

Page 19 of 24


Mittal Steel Company N.V. 
Appendix 3- 1H 2006 
Key Financial and operational 
information (Under US GAAP) 

Amounts in millions of US dollars   
Americas 
Europe 
Asia & 
Elimination 
Mittal 
unless otherwise stated   
Africa 
Steel 
   
(Unaudited) 
 
(Unaudited)
(Unaudited) 
(Unaudited) 
(Unaudited) 
Financial Information   
Sales    $8,347    $6,395    $3,301*    $(383)*    $17,660 
 
Cost of sales (exclusive of    7,153    4,930    2,424*    (416)*    14,091 
depreciation)                     
 
Gross profit (before deducting depreciation)      1,194    1,465    877    33    3,569 
Gross margin (as percentage of sales)      14.3%    22.9%    26.6%        20.2% 
 
Depreciation    235    182    131    -    548 
Selling, general and administrative expenses      173    292    137    (44)    558 
Other Operating Expenses (Income)    -    (71)    -    -    (71) 
 
Operating income    786    1,062    609    77    2,534 
Operating margin (as percentage of sales)      9.4%    16.6%    18.4%        14.3% 
 
EBITDA**    1,022    1,392    878    (82)    3,210 
EBITDA margin ( as percentage of sales)      12.2%    21.8%    26.6%        18.2% 
                     
 
Capital expenditure    188    246    177    -    611 
 
Operational Information                     
Liquid Steel Production ('000 MT)    14,006    12,503    5,927        32,436 
Liquid Steel Production ('000 ST)    15,439    13,783    6,533        35,755 
 
Shipments ('000 MT)    12,350    11,451    5,555        29,356 
Shipments ('000 ST)    13,614    12,623    6,123        32,360 
 
 
Employees    25,300    125,900    69,400        220,600 

*      First quarter 2006 figures have been reclassed
**      EBITDA is income before tax and minority interest plus interest plus depreciation
• Shipment numbers include intercompany shipments.
• Sales as per statement of income above, includes other non-steel product sales (rawmaterials etc) and other sales (non-product). When computing average selling prices only steel sales are considered.
• Sales and cost of sales include shipping and handling fees as per EITF Issue No. 00-10.

Page 20 of 24

Appendix 4
MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION (UNDER IFRS)
MITTAL STEEL COMPANY N.V. CONSOLIDATED BALANCE SHEETS

Balance sheet

   
        As of    
   
June 30, 
March 31, 
December 31, 
In millions of US dollars   
2006 
2006 
2005 
   
(Unaudited) 
(Unaudited) 
(Audited) 
ASSETS   
Current Assets             
   Cash and cash equivalents    $ 2,121    $ 2,051    $ 2,035 
   Restricted cash    1,054    85    100 
   Short-term investments    14    15    14 
   Trade accounts receivable – net    2,895    2,957    2,287 
   Inventories    5,849    5,825    5,994 
   Prepaid expenses and other current assets    1,010    1,116    1,040 
   
Total Current Assets    12,943    12,049    11,470 
   
   Property, plant and equipment – net    18,888    18,928    18,651 
   Investments in affiliates and joint ventures    1,170    1,195    927 
   Deferred tax assets    479    367    314 
   Goodwill and intangible assets    1,751    1,715    1,706 
   Other assets    276    370    691 
   
Total Assets    35,507    $34,624    $33,759 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY 
           
 
Current Liabilities             
   Payable to banks and current portion of    169    $ 376    $ 334 
           long-term debt             
   Trade accounts payable    2,617    2,482    2,504 
   Accrued expenses and other current    2,956    2,701    2,661 
           liabilities             
   
Total Current Liabilities    5,742    5,559    5,499 
   
   Long-term debt, net of current portion    8,089    7,940    7,974 
   Deferred tax liabilities    2,305    2,205    2,253 
   Deferred employee benefits    1,195    1,198    1,054 
   Other long-term obligations    1,335    1,419    1,395 
   
Total Liabilities    18,666    18,321    18,175 
   
Shareholders’ Equity             
   Common shares    60    60    60 
   Treasury stock    (90)    (110)    (111) 
   Additional paid-in capital    2,262    2,241    2,239 
   Retained earnings    11,735    10,926    10,407 
   Other reserves    579    989    828 
   
Equity attributable to the equity holders of the parent 
  14,546    14,106    13,423 
Minority Interest    2,295    2,197    2,161 
Total Equity    16,841    16,303    15,584 
   
Total Liabilities and Shareholders’ Equity 
  $35,507    $34,624    $33,759 
   

Page 21 of 24

MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION (UNDER IFRS)
MITTAL STEEL COMPANY N.V. CONSOLIDATED STATEMENTS OF INCOME DATA & OTHER INFORMATION

    Three Months Ended    Six Months Ended 
In millions of US dollars, except shares, per   
June 30, 
March 31, 
June 30, 
June 30, 
share and shipment data   
2006 
2006 
2006 
2005 
   
(Unaudited) 
(Unaudited) 
(Unaudited) 
(Unaudited) 
STATEMENTS OF INCOME DATA                 
Sales    $ 9,230    $ 8,430    $ 17,660    $ 14,028 
Costs and expenses:                 
Cost of sales (exclusive of depreciation shown 
  7,318    6,849    14,167    10,054 
separately)                 
   Depreciation    342    357    699    485 
Selling, general and administrative expenses 
  266    291    557    527 
   Other operating (income) expense - net    (55)    (19)    (74)    - 
   
    7,871    7,478    15,349    11,066 
Operating income    1,359    952    2,311    2,962 
Operating margin    14.7%    11.3%    13.1%    21.1% 
Other income (expense) – net    (6)    7    1    187 
Income from equity method investments    13    25    38    47 
Financing costs:                 
   Interest (expense)    (150)    (200)    (350)    (146) 
   Interest income    40    20    60    58 
   Net gain (loss) from foreign exchange transactions    90    5    95    17 
    (20)    (175)    (195)    (71) 
Income before taxes and minority interest    1,346    809    2,155    3,125 
Income tax expense:                 
   Current    281    151    432    451 
   Deferred    58    (34)    24    83 
   
    339    117    456    534 
   
Income before minority interest    1,007    692    1,699    2,591 
Minority interest    (110)    (82)    (192)    (324) 
   
Net income    $ 897    $ 610    $ 1,507    $ 2,267 
Basic earnings per common share    $1.27    $0.87    $2.14    $3.39 
Diluted earnings per common share    $1.27    0.86    2.13    3.39 
Weighted average common shares outstanding    705    704    705    669 
(in millions)                 
Diluted weighted average common shares    706    706    706    669 
outstanding (in millions)                 
OTHER INFORMATION                 
Total shipments of steel products including    16,763    15,597    32,360    22,560 
inter-company shipments (thousands of short                 
tons)                 

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MITTAL STEEL COMPANY N.V. CONSOLIDATED FINANCIAL & OTHER INFORMATION (UNDER IFRS)
MITTAL STEEL COMPANY N.V. CONSOLIDATED STATEMENTS OF CASH FLOWS 

    Three         
    Months         
    Ended    Six Months Ended 
 In millions of US dollars   
June 30, 
June 30, 
June 30, 
   
2006 
2006 
2005 
   
(Unaudited) 
(Unaudited) 
(Unaudited) 
 Operating activities:   
 Net income    $ 1,007    $ 1,699    $ 2,591 
Adjustments to reconcile net income to net 
           
 cash provided by operations:             
       Depreciation    342    699    485 
       Net accretion of purchased intangibles    (101)    (190)    (42) 
       Net foreign exchange loss (gain)    32    29    (12) 
       Deferred income tax    108    50    62 
       Income from equity method investment    (31)    (55)    - 
       Distribution from equity method investments    13    25    (24) 
       Loss (gain) on sale of property plant & equipment   14    16    (15) 
       Other non cash operating activities (net)    (1)    (48)    (153) 
Changes in operating assets and liabilities, net             
 of effects from acquisitions:             
       Trade accounts receivable    2    (542)    274 
       Short-term investments    -    -    (8) 
       Inventories    (64)    260    (105) 
       Prepaid expenses and other assets    11    (3)    (228) 
       Trade accounts payable    188    84    (621) 
       Accrued expenses and other liabilities    148    18    (124) 
       Deferred employee benefit costs    51    65    (132) 
 Net cash provided by operating activities    1,719    2,107    1,948 
 Investing activities:             
       Purchase of property, plant and equipment    (348)    (611)    (460) 
       Proceeds from sale of assets and investments    15    19    29 
                including affiliates and joint ventures 
           
       Acquisition of net assets of subsidiaries, net    (2)    (34)    (1,306) 
               of cash acquired             
       Investments in affiliates and joint ventures - net   3    4    22 
       Restricted cash    (969)    (954)    (542) 
       Other investing activities (net)    11    8    (1) 
 Net cash used in investing activities    (1,290)    (1,568)    (2,258) 
 Financing activities:             
       Proceeds from payable to banks    33    46    1,344 
       Proceeds from long-term debt    4,183    4,362    3,099 
       Debt issuance cost    (57)    (57)    (10) 
       Payments of payable to banks    (108)    (128)    (1,215) 
       Payments of long-term debt    (4,222)    (4,387)    (1,324) 
 
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   Purchase of treasury stock    -  1  - 
   Sale of treasury stock for stock option    3  1  6 
           exercised         
   Dividends paid (includes $48 of dividend paid 
  (105)  (241)  (1,801) 
          to minority shareholders during the first 
       
          quarter 2006; $nil for second quarter 2005 
       
          and $150 for the first quarter 2005) 
       
 
         Other financing activities (net)    -  -  (18) 
Net cash provided by (used in) financing activities    (273)  (403)  81 
 
Net increase (decrease) in cash and cash equivalents   156  136  (229) 
Effect of exchange rate changes on cash    (86)  (50)  (217) 
 
Cash and cash equivalents:         
   At the beginning of the period    2,051  2,035  2,495 
   At the end of the period    $2,121  $2,121  $2,049 
 

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