Slide 1: 2Q'22 and 1H'22 Financial Results and Strategic update
2Q’22 and 1H’22 Financial Results and Strategic update July 28, 2022 Aditya Mittal, Chief Executive Officer Genuino Christino, Chief Financial Officer © ArcelorMittal 2022 - All rights reserved for all countries Cannot be disclosed, used, or reproduced without prior written specific authorization by
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 expectation
Slide 3: Sustainable value creation
Sustainable value creation
Slide 4: Safety is our priority: committed to reach zero harm
Safety is our priority: committed to reach zero harm ▪ Following full review of every aspect of safety a multi-pronged Health and safety performance (LTIF)* action plan has been deployed, building on and supporting the considerable policies and processes already in place 3.2 3.0 ▪ Global H&S team st
Slide 5: Progress on all strategic fronts
Progress on all strategic fronts Key 1H’22 figures: Decarbonization leadership: Strategic growth: Capital returns: ▪ $10.2bn EBITDA 2030 targets set (25% CO2e $3.65bn strategic capex envelope to Balanced capital allocation reduction globally, 35% for Europe) generate $1.2bn additional EBITDA includi
Slide 6: Financial performance
Financial performance
Slide 7: Strong 1H 2022
Strong 1H 2022 ▪ $10.2bn EBITDA is strongest 1H performance in more than a decade 23.5% EBITDA ($bn) ▪ $8.0bn net income is 28% higher than same period as last year 6.1 10.2 ▪ Includes $1.1bn share of JV and associates income reflecting strong 5.1 5.1 5.1 5.2 8.3 performance at European investees, A
Slide 8: Fifth successive quarter of EBITDA >$5bn
Fifth successive quarter of EBITDA >$5bn EBITDA ($bn) ▪ EBITDA: 2Q’22 EBITDA +1.6% to $5.2bn; EBITDA/t of $359/t +1.6% 23.5% ▪ Solid steel performance: 5.1 5.1 5.2 8.3 10.2 ‒ Improved Brazil performance (positive price-cost effect and Pis/Cofins gain) offset by lower NAFTA (negative price-cost effec
Slide 9: 2Q'22 and 1H'22 shipment performance impacted by war in Ukraine
2Q’22 and 1H’22 shipment performance impacted by war in Ukraine 2Q’22 vs. 1Q’22 shipments (Mt) Scope adjusted 1H’22 vs. 1H’21 shipments* (Mt) -0.9 -1.8 15.3 31.5 0.0 -0.4 -2.1 -0.9 14.4 29.7 0.0 0.0 0.2 -0.2 1Q’22 Europe ACIS Brazil NAFTA Elim. 2Q’22 1H’21 Europe ACIS Brazil NAFTA Elim. 1H’22 • Majo
Slide 10: CSP acquisition
CSP acquisition
Slide 11: Proposed acquisition of CSP: a key for further value creation in LATAM and beyond
Proposed acquisition of CSP: a key for further value creation in LATAM and beyond Companhia Siderúrgica do Pecém. (3Mt) Steelmaking assets Capacity Mt ▪ Agreement reached with Vale (50%), Dongkuk (30%), Posco AM Brasil Flat 7.5 (20%) to acquire Companhia Siderúrgica do Pecém (CSP) for an AM Brasil L
Slide 12: CSP: highest quality, lowest cost slab capacity
CSP: highest quality, lowest cost slab capacity Companhia Siderúrgica do Pecém (CSP) is a low-cost slab producer. Located in North East Brazil, with a deep water port. Current capacity 3Mt; commissioned in 2016 ▪ CSP is a modern port based, world class asset with state of the Exceptional art technol
Slide 13: Acquisition of CSP: would create options to generate additional value
Acquisition of CSP: would create options to generate additional value ▪ CSP has significant potential for competitive low CO2 steelmaking ▪ Located next to abundant sources of wind and solar energy with high-capacity factors Low CO2 ▪ Brazil State of Ceará investing heavily to be globally competitiv
Slide 14: Unique synergies between ArcelorMittal and CSP support valuation
Unique synergies between ArcelorMittal and CSP support valuation >$50m annual EBITDA synergies estimated: ▪ Synergies and process optimization are expected to yield benefits Historical and forecast EBITDA ($m) ▪ Examples include SG&A, procurement, debottlenecking, improved productivity 320 330 ▪ Min
Slide 15: Balanced capital allocation
Balanced capital allocation
Slide 16: Capex funding strategic growth increased + decarbonization
Capex funding strategic growth increased + decarbonization Capex ($bn) ▪ 2Q’22 capex of $0.7bn; 1H’22 capex of $1.2bn Decarbonization ▪ FY 2022 capex guidance reduced by $0.3bn to $4.2bn Strategic envelope (from $4.5bn previous guidance) implying 2H’22 capex of Base / normative (Including carry over
Slide 17: Strategic capex envelope to drive significant incremental value
Strategic capex envelope → to drive significant incremental value Strategic capex 2021 – 2024 ($bn) Potential EBITDA impacts*** ($bn) 3.65 0.20 1.2 Completed 0.50 0.25 4Q’21: Ramp up in 2022 0.80 0.07 going to plan 0.07 0.30 0.60 0.07 0.25 0.05 0.10 0.15 0.10 0.35 0.25 Outstanding spend 0.35 0.35 Sp
Slide 18: Decarbonization of NAFTA footprint accelerated following Texas HBI plant acquisition
Decarbonization of NAFTA footprint accelerated following Texas HBI plant acquisition State of the art 5.3Mt ▪ HBI plant acquisition completed in 2Q’22 finishing facility, with 1.5Mtpa EAF under ▪ 2Mt of high quality HBI capacity with options for construction at Calvert, further site development & in
Slide 19: Outlook
Outlook
Slide 20: Economic headwinds leading to weaker sentiment
Economic headwinds leading to weaker sentiment Jun’22 51.8: down from 58.5 peak ArcelorMittal weighted PMI* chart in Jul’21 but still signalling real ▪ Pace of the real demand recovery has moderated demand expansion 58 ▪ Weaker apparent demand: Slowing activity and price 54 normalization led to dest
Slide 21: Beyond 2022 – Energy transition to be a key demand driver
Beyond 2022 – Energy transition to be a key demand driver Steel intensity in energy sector is increasing with the transition to low carbon sources of energy generation [ton steel /MW*] ▪ Steel will play an important role in the energy transition ▪ It is as relevant as ever to the future success of o
Slide 22: Addressing the energy supply risks in Europe
Addressing the energy supply risks in Europe ArcelorMittal Europe locations* (Flat/long) ▪ ArcelorMittal well placed to manage gas supply risks ✓ Benefit of multi-site operations across 9 countries in Europe ✓ No market share risk; ArcelorMittal able to meet market demand from pan-European footprint
Slide 23: Sustainable value creation
Sustainable value creation
Slide 24: Focussed on sustainable value creation
Focussed on sustainable value creation ▪ Global leadership on decarbonization Sustainability ▪ Delivering green steel Leadership ▪ Driving technology solutions ▪ 3Yr $1.5bn Value Plan to support higher normalized EBITDA Cost advantage ▪ Optimized footprint and enhanced productivity Sustainable ▪ Hig
Slide 25: 2Q'22 and 1H'22 APPENDIX
2Q’22 and 1H’22 APPENDIX SUSTAINABLE DEVELOPMENT | page 26 FINANCIAL HIGHLIGHTS | page 28 JV INVESTMENTS | page 36
Slide 26: Sustainable development
Sustainable development
Slide 27: Low-carbon emissions steel standard
Low-carbon emissions steel standard Supports the creation of market demand for physical steel products which would be classified as lower, and ultimately near-zero, carbon emissions steel ▪ Dual scoring system provides customers with a life cycle assessment The graph demonstrates the (LCA) value alo
Slide 28: Financial performance
Financial performance
Slide 29: 1H'22 EBITDA to net result
1H’22 EBITDA to net result ($ million) BASIC EPS 1H’22 Includes forex loss Weighted Av. No. of shares (millions) 944 of $198m Earnings per share $8.53 (1,316) 1,137 (104) (323) (1,589) Primarily on account of strong results from AMNS India, Calvert and 10,243 European investees (including $0.1bn 9,6
Slide 30: 1H'22 EBITDA to free cashflow
1H’22 EBITDA to free cashflow ($ million) (3,055) Mainly to the minority shareholders of AMMC (2,600) 10,243 (1,184) (178) 4,588 3,226 EBITDA Change in Net financial cost, Cash flow from Capex Minority dividends Free cash flow** working capital* tax and others operations Page 30 * Change in working
Slide 31: 1H'22 net debt analysis
1H’22 net debt analysis ($ million) Primarily relates to the acquisition of an 80% shareholding in voestalpine’s world-class Hot Briquetted Iron (‘HBI’) plant located in Corpus Christi, Texas 82 332 2,000 (3,226) ArcelorMittal 4,223 4,030 repurchased 65.1m shares for a total 1,005 value of $2.0bn Ne
Slide 32: Strong balance sheet
Strong balance sheet Liquidity* at June 30, 2022 ($bn) Debt maturities at June 30, 2022 ($bn) Other loans Commercial paper Bonds 10.1 1.1 Cash 4.6 0.5 0.3 0.6 0.3 1.7 Unused credit lines 5.5 0.9 1.2 0.8 0.9 0.1 0.4 Liquidity 2022 2023 2024 2025 2026 ≥2026 Liquidity lines Debt**: Ratings: ▪ $5.5bn li
Slide 33: Maintaining a strong balance sheet
Maintaining a strong balance sheet Capital employed ($bn) Net debt / EBITDA ($bn) 24 22.0 Net debt at Jun’22 / EBITDA*** (x) RHS 3.0 21.8 22 Net debt / EBITDA*** (x) RHS 17 Long term liabilities 20 Net debt $bn LHS 2.5 Total assets less total current liabilities 36 18 17.4 16.6 16.2 16.1 15.8 15.7 1
Slide 34: Strong balance sheet supports consistent returns and strategic optionality
Strong balance sheet supports consistent returns and strategic optionality Net debt ($bn) Annual interest cost ($bn) 32.5 1.9 1.8 26.5 1.5 22.5 21.8 1.3 18.8 19.7 1.1 16.1 15.8 15.7 0.8 11.1 10.1 10.2 9.3 0.6 0.6 6.4 4.0 0.4 0.3 3.2 4.2 0.2 2011 2010 2012 2012 2020 3Q’08 2008 2009 2013 2014 2015 201
Slide 35: Consistently returning capital to shareholders → reducing shares to create value
Consistently returning capital to shareholders → reducing shares to create value Implementation of clearly defined capital return policy: Returns to shareholders since Sept 2020 ($bn) 10.9 ▪ $9.5bn returned since Sept 2020 as of June 30, 2022 9.5 1.4 0.3 ▪ $0.38/share base dividend ($332m) was paid
Slide 36: JV investments
JV investments
Slide 37: AMNS India debottlenecking underway; further expansion planned
AMNS India debottlenecking underway; further expansion planned Weaker EBITDA performance in 2Q’22 due to lower shipments and Crude steel production (Mt) lower pellet contribution following the introduction of the export duty during the quarter Quarterly Annualised ▪ Lower steel production on account
Slide 38: Calvert: 1.5Mt EAF project progressing
Calvert: 1.5Mt EAF project progressing Construction of new 1.5Mt EAF & caster Hot strip mill production (Mt) ▪ JV to invest $775m for an on-site steelmaking facility (produce slabs for the existing operations, replacing part of purchased slabs) Quarterly Annualised ▪ Secures a reliable slab supply (
Slide 39: ArcelorMittal contacts
ArcelorMittal contacts Daniel Fairclough – Global Head Investor Relations Maureen Baker – Fixed Income/Debt IR daniel.fairclough@arcelormittal.com +44 207 543 1105 maureen.baker@arcelormittal.com +33 1 71 92 10 26 Hetal Patel – UK/European Investor Relations hetal.patel@arcelormittal.com +44 207 543