Slide 1: 4Q 2023 and FY 2023 Financial results and strategic update
4Q 2023 and FY 2023 Financial results and strategic update February 8, 2024 Lakshmi Mittal, Executive Chairman Aditya Mittal, Chief Executive Officer Genuino Christino, Chief Financial Officer
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Determined to reach zero harm: 3rd party group-wide safety audit commenced
Determined to reach zero harm: 3rd party group-wide safety audit commenced Company-wide audit of safety practices by dss+ launched. Key recommendations to be published in September 2024. The audit will Group lost time injuries frequency rate1 cover: − Comprehensive Fatality Prevention Standards (F
Slide 4: 2023 further strategic progress
2023 further strategic progress Decarbonization leadership: Strategic growth: Capital returns: Key 12M’23 figures: Group targets: 2030 targets set (25% Organic investment to support >$1.8bn Balanced capital return policy: CO2e reduction globally, 35% for Europe) of structural EBITDA improvement by m
Slide 5: ArcelorMittal results reflecting structural improvement
ArcelorMittal results reflecting structural improvement Despite the weak economic backdrop, and specific challenges faced by the Europe and ACIS operations in 2H’23, the Group profitability is higher than historical average levels, demonstrating the benefits of our strengthened asset portfolio in re
Slide 6: What is driving ArcelorMittal's future growth?
What is driving ArcelorMittal’s future growth? Population growth Energy transition Driven by emerging markets Steel is a vital enabler 300Mt (+35%) Ex-China steel demand Improving living Supply chain security growth over next decade standards Driven by all markets +100Mt (100%) India Driven by emerg
Slide 7: Portfolio of assets exposed to structurally attractive & high-growth markets
Portfolio of assets exposed to structurally attractive & high-growth markets • Going forward we will include JV and associates net income within our North America: ~27% 12M’23 EBITDA EBITDA this will more fully reflect our growth exposures • Structurally attractive market • India and JVs will be r
Slide 8: Plans under development to capitalize on the opportunities in the USMCA
Plans under development to capitalize on the opportunities in the USMCA ArcelorMittal Texas HBI – plans to double capacity Corpus Christi, Texas - 2Mt HBI Plant hit production records in 2023 The US (and the broader capacity Plans under development to double HBI capacity and add CCS USMCA) is a
Slide 9: India & JVs: An important and exciting growth vector for the Company
India & JVs: An important and exciting growth vector for the Company FY’23 JV & associates income of $1.2bn (vs. $1.3bn in FY’22)1. 3 key investments account for ~60-70% of the overall income generated: India is the fastest growing major steel market: Significant steel demand per capita over the l
Slide 10: Sustainable Solutions – growing niche businesses in support of a decarbonized world
Sustainable Solutions – growing niche businesses in support of a decarbonized world Construction solutions: Projects: Industeel: • Inspiring the construction sector to • Providing high-quality & sustainable • EAF based capacity: High quality build in smarter ways to deliver steel solutions for energ
Slide 11: A large proportion of strategic projects will be commissioned in 2024
A large proportion of strategic projects will be commissioned in 2024 LIBERIA SERRA AZUL ELECTRICAL STEEL VEGA INDIA RENEWABLES 15Mtpa concentrator and 4.5Mtpa DRI quality pellet in Mardyck BARRA MANSA Increase coated / CRC Combining solar and wind infrastructure feed (itabirite mining (France): New
Slide 12: Organic investments driving $1.8bn of estimated structural EBITDA growth by the end of 2026
Organic investments driving $1.8bn of estimated structural EBITDA growth by the end of 2026 Strategic capex projects to begin contributing to Estimated EBITDA1 of strategic envelope projects ($bn) EBITDA and net income 0.40 1.8 • Focussed on our exposure to high growth markets, HAV capabilities and
Slide 13: Leveraging strengths to lead the market in low-emissions steel solutions
Leveraging strengths to lead the market in low-emissions steel solutions Strengths & advantages: • Existing EAF footprint 36 EAFs in the group (including JVs) • Existing DRI capabilities we are the world’s largest DRI producer • Innovation R&D capabilities supporting “smart carbon” steel makin
Slide 14: Base dividend growing with structural profitability
Base dividend growing with structural profitability Having achieved its balance sheet targets, ArcelorMittal has adopted a prudent and flexible capital allocation and return policy Fixed component: Conservative base dividend to be progressively increased over time as profitability structurally i
Slide 15: Consistent buy backs: One third of shareholder equity repurchased since Sept 2020
Consistent buy backs: One third of shareholder equity repurchased since Sept 2020 Diluted no. of shares (outstanding* & MCN) (millions) Balanced capital return policy: minimum 50% of post-dividend annual FCF is returned through buybacks -33% 12M’23 FCF of $2.9bn $0.4bn dividends paid and $1.2bn re
Slide 16: Sustainably higher returns through the cycle
Sustainably higher returns through the cycle ROE1,2 (Rolling 5 year ex. worst/best years) % ROCE1,3 (Rolling 5 year ex. worst/best years) % 13.2 12.0 10.8 11.2 10.0 10.0 7.9 7.6 7.6 5.5 6.0 6.0 2014-18 2015-19 2016-20 2017-21 2018-22 2019-23 2014-18 2015-19 2016-20 2017-21 2018-22 2019-23 1. Excludi
Slide 17: Smarter steels for people and planet
Smarter steels for people and planet • Safety is our number one value Improving • 3rd party audit of all our safety practices commenced safety • While the audit is underway, we are building on and accelerating our existing safety improvement activities • The Company is on the cusp of a step change i
Slide 18: Appendix
Appendix 4Q 2023 and FY 2023 PERFORMANCE | page 19 SUSTAINABLE DEVELOPMENT | page 25 OUTLOOK | page 27 Page 18
Slide 19: Performance
Performance Page 19
Slide 20: Market conditions showing signs of improvement
Market conditions showing signs of improvement ArcelorMittal weighted PMI1 chart Similar to the corresponding period last year, 4Q’23 was 58 the peak of the destocking environment; whilst risks to 54 the economic outlook remain, apparent demand is 50 46 improving 42 48.4 38 Unsustainably low ste
Slide 21: 12M'23 EBITDA to adjusted net result
12M’23 EBITDA to adjusted net result BASIC EPS 12M’23 ($ million) Weighted Av. No. of shares (millions) 842 Related to the Kazakhstan sale where the Company recorded a $0.9bn non- Adjusted earnings per share1 $5.78 cash impairment charge (including Relates to the Long $0.2bn goodwill), and recorded
Slide 22: 12M'23 EBITDA to free cash flow
12M’23 EBITDA to free cash flow ($ million) 1,604 (1,517) (4,613) 7,558 7,645 (162) 2,870 EBITDA Change in Net financial cost, Cash flow from Capex Minority dividends Free cash flow² working capital¹ tax and others operations 1. Change in working capital: trade accounts receivable plus inventories l
Slide 23: 12M'23 net debt analysis
12M’23 net debt analysis ($ million) 380 1,208 2,898 2,236 369 (2,870) 340 1,235 Net debt at Free cash flow¹ M&A² MCB repayment³ Dividend to Share buyback Forex and other Net debt at December ArcelorMittal December 31, 2022 shareholders 31, 2023 1. Free cash flow defined as cash flow from operations
Slide 24: Capex in 2024 to continue to fund strategic growth and decarbonization
Capex in 2024 to continue to fund strategic growth and decarbonization Capex1 ($bn) FY 2023 capex of $4.6bn (in line with the latest guidance) and compares with $3.5bn in FY 2022 5.0 0.4 FY 2024 capex guidance in the range of $4.5bn-$5.0bn 4.6 4.5 0.2 Decarbonization project spend to increase
Slide 25: Sustainable development
Sustainable development Page 25
Slide 26: How XCarb® helps our customers achieve their sustainability goals
How XCarb® helps our customers achieve their sustainability goals Customers across a range of industries are already benefitting from XCarb® solutions “We call this Electricity 4.0, meaning “Vestas sees the the integration of digital technologies partnership with with electrification for sustainabil
Slide 27: Outlook
Outlook Page 27
Slide 28: 2024 constructive outlook
2024 constructive outlook Demand: World ex-China ASC is expected to recover in 2024 by +3.0% to +4.0% as compared to 2023 to support shipment growth in 2024 YoY Forecast ASC1 demand outlook (2024F vs. 2023) US Flat +1.5% to +3.5% EU27 Flat +2.0% to +4.0% China2 +0% to +2.0% Brazil +0.5% to +2.5%
Slide 29: ArcelorMittal contacts
ArcelorMittal contacts Daniel Fairclough – Global Head Investor Relations Maureen Baker – Fixed Income/Debt Investor Relations daniel.fairclough@arcelormittal.com +44 207 543 1105 maureen.baker@arcelormittal.com +33 1 71 92 10 26 Hetal Patel – General Manager Investor Relations Victoria Irving – ESG