Slide 1: 1Q 2023 Results
1Q 2023 Results May 4, 2023 Genuino Christino, Chief Financial Officer Daniel Fairclough, Head of Investor Relations
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: Contents
Contents 1Q 2023 EXECUTIVE SUMMARY | page 4 STRATEGIC GROWTH | page 9 JV INVESTMENTS| page 13 CAPITAL ALLOCATION| page 16 APPENDIX| page 20 Page 3
Slide 4: Safety, an overarching priority of the Company: Committed to Reach Zero Harm
Safety, an overarching priority of the Company: Committed to Reach Zero Harm Moving to ‘predict and prevent’ culture: Moving attention to Health and safety performance (LTIF**) proactive rather than reactive KPIs, with a particular focus on reporting proactive PSIF* 3.2 3.0 Significant increase
Slide 5: A solid start to the year as destocking has ended
A solid start to the year as destocking has ended Key 1Q’23 figures: Decarbonization: Strategic growth: Capital returns: $1.8bn EBITDA Targets: 2030 targets set (25% CO2e Recent acquisitions estimated to add Base dividend of $0.44/sh (2 equal instalments in Jun 2023 and Dec 2023) reduction globall
Slide 6: Sequentially improved results driven by recovery in steel shipments
Sequentially improved results driven by recovery in steel shipments End of destocking has driven a recovery in shipment volumes and supported higher production From cycle-low level in 4Q’22, EBITDA/t increased by +$26/t to $126/t in 1Q’23 Due to lags, the improvement in steel spreads observed
Slide 7: Market conditions recovering following end of destock
Market conditions recovering following end of destock ArcelorMittal weighted PMI* 62 Overall economic sentiment has improved (driven by 60 58 ArcelorMittal Europe) but remains relatively subdued; auto recovery 56 54 52 supporting flat rolled products 50 48 46 44 48.3 Destocking has ended, drivin
Slide 8: Improved operating result for 1Q’23
Improved operating result for 1Q’23 EBITDA ($bn) EBITDA: Recovery in steel shipments driving $26/t improvement in EBITDA to $126/t in 1Q’23 Improved steel performance: ‒ Primarily driven by improving steel shipment 5.1 5.2 +44.9% volumes and lower costs (including energy) 2.7 1.3 1.8 Strong ir
Slide 9: Strategic growth
Strategic growth
Slide 10: ArcelorMittal Pecém: a key for further value creation in LATAM and beyond
ArcelorMittal Pecém: a key for further value creation in LATAM and beyond Companhia Siderúrgica do Pecém Port Companhia Siderúrgica do Pecém. Company acquired Companhia Siderúrgica do Pecém (renamed ArcelorMittal Pecém)* for $2.2bn in 1Q’23 (consolidated since March 9, 2023) Modern port-based wo
Slide 11: New renewable energy JV partnership project in Brazil
New renewable energy JV partnership project in Brazil Renewable energy a key ‘resource’ to decarbonize steel: Brazilian northeastern region ArcelorMittal Brasil will form a renewable energy JV partnership with Casa dos Ventos to develop a 554MW wind power project ArcelorMittal Brasil will hold a
Slide 12: Positive contribution from investments and acquisitions
Positive contribution from investments and acquisitions ArcelorMittal Pecém performing well ArcelorMittal Pecém EBITDA ($bn) ‒ Consolidated from March 9, 2023 ‒ Benefiting from healthy market demand for highest quality slab ‒ Current run-rate profitability higher than normalised assumptions >0.6bn
Slide 13: JV performance
JV performance
Slide 14: AMNS India solid performance; doubling of capacity underway
AMNS India solid performance; doubling of capacity underway Stronger performance Crude steel production (Mt) 1Q’23 vs. 4Q’22 improved due to higher shipments and selling prices 6.7 7.1 Growth plans in steel & mining 1.7 1.8 Approved investment plan of $7.4bn* to expand capacity, increase value a
Slide 15: 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 c.$1bn* for an on-site steelmaking facility (produce slabs for the existing operations, replacing part of purchased slabs) Quarterly Secures a reliable slab supply (USMCA com
Slide 16: Capital allocation
Capital allocation
Slide 17: Capex in 2023 to fund strategic growth and decarbonization
Capex in 2023 to fund strategic growth and decarbonization 1Q’23 capex of $0.9bn consistent with full year guidance FY 2023 capex guidance ($bn) FY 2023 capex expected in the range of $4.5bn-$5.0bn 5.0 4.5 0.4 ‒ Decarbonization project capex* spend estimated at $0.4bn 0.4 1.6 ‒ Strategic capex s
Slide 18: Building a track record of consistent returns to shareholders
Building a track record of consistent returns to shareholders Implementation of clearly defined capital return policy: Diluted no. of shares (outstanding* & MCN) (millions) $0.44/share base dividend to be paid in 2 equal instalments in June and Dec 2023 -31% Company’s capital return policy defin
Slide 19: Smarter steels for people and planet
Smarter steels for people and planet Safety is our number one priority Improving safety Moving to a ‘predict and prevent’ culture, focussed on detecting and reducing the precursors of fatalities and severe injuries Applying world-class equipment and procedures that achieve our objectives in th
Slide 20: Appendix
Appendix 1Q 2023 FINANCIAL PERFORMANCE | page 21 Page 20
Slide 21: Financial performance
Financial performance
Slide 22: 1Q’23 EBITDA to net result
1Q’23 EBITDA to net result ($ million) BASIC EPS 1Q’23 Weighted Av. No. of shares (millions) 859 Earnings per share $1.28 (630) (64) 318 (117) (233) 1,822 Includes contribution from AMNS India, 1,329 1,192 1,096 Calvert and European investees EBITDA D&A Operating income Income from Net interest Fore
Slide 23: 1Q’23 EBITDA to free cash flow
1Q’23 EBITDA to free cash flow ($ million) (775) (98) 1,822 949 (938) (53) (42) EBITDA Change in Net financial cost, Cash flow from Capex Minority dividends Free cash flow** working capital* tax and others operations Page 23 * Change in working capital: trade accounts receivable plus inventories les
Slide 24: 1Q’23 Net debt analysis
1Q’23 Net debt analysis ($ million) Primarily includes $2.2bn for acquisition of ArcelorMittal Pecém (Brazil) and $0.2bn for other acquisitions/investments (Riwald Recycling, Italpannelli Deutschland and investment in Boston Metal (part of XCarb™ innovation fund)), offset in part by 7.85% stake sale
Slide 25: Balance sheet a strong foundation for strategic continuity
Balance sheet a strong foundation for strategic continuity Liquidity* at March 31, 2023 ($bn) Debt maturities at March 31, 2023 ($bn) 11.8 Other loans Bonds Commercial paper Cash 6.3 2.6 0.8 Unused credit lines 5.5 0.8 1.0 1.2 0.9 1.0 0.6 0.6 1.0 0.3 0.2 0.5 Liquidity 2023 2024 2025 2026 2027 ≥2027
Slide 26: 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 – UK/European Investor Relations Victoria Irving – ESG Inv