Slide 1: 3Q'22 Financial Results
3Q’22 Financial Results November 10, 2022 Genuino Christino, Chief Financial Officer Daniel Fairclough, Head of Investor Relations © ArcelorMittal 2022 - All rights reserved for all countries Cannot be disclosed, used, or reproduced without prior written specific authorization by ArcelorMittal CONFI
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: Demonstrating resilience; focussed on long term objectives
Demonstrating resilience; focussed on long term objectives “Real demand headwinds have been exacerbated by ▪ Market conditions improving → 4Q’22 was the peak of the destocking through the value chain. As expected, apparent destocking environment; whilst risks to the economic outlook demand condition
Slide 4: Safety and sustainability
Safety and sustainability
Slide 5: 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 3.5 considerable policies and processes already in place 3.0 2.5 ▪ Global H&S tea
Slide 6: Leading the industry towards low-carbon emissions steel
Leading the industry towards low-carbon emissions steel • Plans aligned with the Company’s 2030 CO2e targets + net zero by 2050* Plans • Ambitious plans where policy is supportive: Spain, Canada, Belgium and France • Broad innovation portfolio of smart carbon and hydrogen-DRI technologies • Texas HB
Slide 7: Canada: ArcelorMittal breaks ground on first low-carbon steelmaking project
Canada: ArcelorMittal breaks ground on first transformational low-carbon emissions steelmaking project Project summary: ArcelorMittal Dofasco to reduce annual CO2 emissions at its Hamilton, Ontario operations by 3.0Mt, within the next 7 years Funding: Governments of Canada & Ontario having committed
Slide 8: Financial performance
Financial performance
Slide 9: Challenging 3Q 2022 operating environment
Challenging 3Q 2022 operating environment ▪ Lower EBITDA: 3Q’22 EBITDA $2.7bn; EBITDA/t of $196/t EBITDA ($bn) -48.5% -10.1% ▪ Weaker steel performance: 6.1 5.2 14.4 12.9 ‒ Negative price-cost effects and lower steel shipments in 2.7 Europe, NAFTA and Brazil driven by weaker demand 3Q’21 2Q’22 3Q’22
Slide 10: Economic headwinds exacerbated by destocking
Economic headwinds exacerbated by destocking Challenging steel backdrop in 3Q’22: Regional HRC prices & RMB $/t* ▪ Slowing real demand due to economic headwinds ▪ Impacts on apparent consumption have been exacerbated by rapid supply 2200 US domestic EXW Indiana $/t chain destocking 2000 N.Europe dom
Slide 11: 2H'22F demand environment impacted by destocking
2H’22F demand environment impacted by destocking Europe Flat ASC YoY % Inventory situation 3 ▪ Real demand in 2022 remains forecast to be positive in NAFTA and Europe ▪ But this is being offset by the effects of destocking, particularly in Europe ▪ Destock is being particularly concentrated in the 2
Slide 12: ArcelorMittal has reacted swiftly and effectively
ArcelorMittal has reacted swiftly and effectively ▪ Due to a weak macro backdrop, destock, high energy prices and Europe crude steel production rising imports the Company has adapted production to addressable 4Q’21 vs. 4Q’22F (Mt) demand, focussing production at its most efficient sites – Optimizing
Slide 13: ArcelorMittal Europe gas consumption needs have been optimized by 30%
ArcelorMittal Europe gas consumption needs have been optimized by 30% TTF natural gas (€/Mwh) and power Germany (€/Mwh) ▪ ArcelorMittal well placed to manage gas supply risks → 1000 Benefit of multi-site operations across 9 countries in 900 EU Natural Gas Europe. Not all sites exposed to same cost h
Slide 14: Balanced capital allocation
Balanced capital allocation
Slide 15: Strong balance sheet supports strategic continuity
Strong balance sheet supports strategic continuity ✓ A lower cost balance sheet will continue to enhance our ability to translate EBITDA into free cash flow to generate value for our investors ✓ Supports structurally higher FCF* (and therefore returns to shareholders) and ROE** Balance sheet has nev
Slide 16: Consistently returning capital to shareholders
Consistently returning capital to shareholders → reducing shares to create value Significant reduction of shares: Returns to shareholders since Sept 2020 ($bn) 0.7 10.9 ▪ $10.2bn returned since Sept 2020 10.2 0.3 0.7 ▪ $0.38/share base dividend ($332m) was paid in Jun 2022 2.0 ▪ Shares outstanding*
Slide 17: Capex to increase in 4Q with higher spend in all categories
Capex to increase in 4Q with higher spend in all categories 2022F capex ($bn) ▪ FY’22F capex is now expected to total $3.5bn 5.0 4.2 ▪ There have been some moderate delays to 4.0 0.3 3.5 decarbonization spending and certain strategic plans 1.1 0.2 3.0 0.7 due to project mobilization/contractors but
Slide 18: AMNS India JV advancing its growth plans
AMNS India JV advancing its growth plans Improved business performance ▪ Established status as a service and quality leader → Premium supplier of high-quality steel ▪ Enhanced profitability profile – higher earnings from growing core asset base (steel, mining), supplemented with contribution from st
Slide 19: Balance sheet a strong foundation for strategic continuity
Balance sheet a strong foundation for strategic continuity Liquidity* at Sept 30, 2022 ($bn) Debt maturities at Sept 30, 2022 ($bn) Other loans Commercial paper Bonds 10.6 1.0 Cash 5.1 0.4 0.3 0.6 0.2 0.1 1.7 Unused credit lines 5.5 0.9 1.1 0.8 0.9 1.0 Liquidity 2022 2023 2024 2025 2026 ≥2026 Liquid
Slide 20: Focused on sustainable value
Focused on sustainable value
Slide 21: Progress on strategic fronts
Progress on strategic fronts Key 9M’22 figures: Decarbonization leadership: Strategic growth: Capital returns: ▪ $12.9bn EBITDA 2030 targets set (25% CO2e reduction $3.65bn strategic capex envelope to Balanced capital allocation including a globally, 35% for Europe) generate $1.2bn additional EBITDA
Slide 22: Appendix slides
Appendix slides
Slide 23: AMNS India JV debottlenecking underway; further expansion planned
AMNS India JV debottlenecking underway; further expansion planned 3Q’22 performance Crude steel production (Mt) ▪ Lower ASP, higher coal costs and lower pellet sales contribution Quarterly Annualized (following the introduction of the export duty during the prior quarter) offset in part by higher st
Slide 24: AMNS India: Phased upstream expansion aligned with growth in Indian steel demand
AMNS India: Phased upstream expansion aligned with growth in Indian steel demand Near term: Production growth profile (Mt) • Debottlenecking: Ongoing investments to ramp up Hazira production Option: capacity to 8.6Mt by end of 2024; Capex of ~$0.8bn Option: Greenfield Feasibility being assessed Medi
Slide 25: Calvert: 1.5Mt EAF project progressing
Calvert: 1.5Mt EAF project progressing Hot strip mill production* (Mt) Construction of new 1.5Mt EAF & caster ▪ JV to invest $775m for an on-site steelmaking facility (produce slabs Quarterly Annualized for the existing operations, replacing part of purchased slabs) -6.4% ▪ Secures a reliable slab s
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 hetal.patel@arcelormittal