Slide 1: 1Q 2024 Results
1Q 2024 Results May 2, 2024 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 2024 EXECUTIVE SUMMARY| page 4 STRATEGIC GROWTH | page 11 CAPITAL ALLOCATION| page 14 APPENDIX| page 18 Page 3
Slide 4: Determined to reach zero harm
Determined to reach zero harm Company-wide audit of safety practices by dss+ is ongoing with Group lost time injuries frequency rate1 key recommendations to be published in September 2024 once complete. Progress as at the end of March 2024 includes: 3.2 3.0 ▪ 30% Fatality Prevention Standards (FPS)
Slide 5: Key highlights of the 1Q 2024
Key highlights of the 1Q 2024 Organic growth: $1.8bn uplift in EBITDA potential by end 20262 ▪ $2.0bn EBITDA1 1Q’24 capex of $1.2bn includes $0.4bn on strategic growth; projects to be completed near term include Vega and India Renewables Developing pipeline of further strategic growth projects, with
Slide 6: Sequentially improved results
Sequentially improved results 4Q’23 vs. 1Q’24 scope adjusted shipments (i.e. excluding Kazakhstan) (Mt)1 ▪ Shipment volumes recovered following the end of destocking which negatively impacted 4Q’23; however, shipments +5.0% remain well below capacity (Europe & Argentina); real demand remains weak in
Slide 7: Destock ended but customers in “wait and see” mode
Destock ended but customers in “wait and see” mode ArcelorMittal weighted PMI1 chart ▪ Following the end of destocking, apparent demand improved in 1Q’24 but reflects a generally lacklustre 58 54 49.6 economic backdrop 50 ▪ No signs of restocking yet as customers remain in a “wait 46 42 and see” mod
Slide 8: Higher EBITDA reflects price-cost expansion and higher shipment volumes
Higher EBITDA reflects price-cost expansion (N America) and higher shipment volumes EBITDA bridge between 4Q’23 and 1Q’24 ($m) ▪ EBITDA1 now includes share of JV & Associate net income 17 1,956 ▪ North America: EBITDA up QoQ → Positive price-cost effect (PCE) and 54 higher steel shipments 60 (28) (1
Slide 9: Balance sheet strength supports consistent investment and returns
Balance sheet strength supports consistent investment and returns ▪ Net debt increased to $4.8bn at the end of March 31, 2024 Net debt ($bn) ▪ This increase was driven by a seasonal working capital -0.4 investment of $1.7bn and share buybacks of $0.6bn 5.2 4.8 4.5 4.3 ▪ Due to the seasonality of wor
Slide 10: XCarb® – a strong and growing presence in the market for decarbonized steel
XCarb® – a strong and growing presence in the market for decarbonized steel ▪ XCarb® brand gaining market traction ▪ Company has demonstrated the ability to produce a wide variety of different grades and types of XCarb® recycled and renewably produced products for a multitude of customer application
Slide 11: Strategic growth
Strategic growth
Slide 12: Growth: organic investment to support $1.8bn structural EBITDA growth by end 2026
Growth: organic investment to support $1.8bn structural EBITDA growth by end 20261 11 strategic projects currently underway to achieve $1.8bn1 additional EBITDA potential 2H 2021 1H 2024 2H 2024 2025 2026 ✓ Mexico HSM: Increase ▪ Vega (Brazil): Increase ▪ Calvert EAF (US) ▪ Las Truchas iron ore ▪ AM
Slide 13: Vallourec stake increases exposure to value-added downstream in Americas
Vallourec stake increases exposure to value-added downstream in Americas ArcelorMittal has agreed to acquire a 28% stake in Vallourec for ~$1.1bn ▪ Strategic rationale: Vertically integrated assets supplying premium downstream products in a focus geography (80% of EBITDA in Americas); Vallourec's st
Slide 14: Capital allocation
Capital allocation Page 14
Slide 15: Capex in 2024 to continue to fund strategic growth and decarbonization
Capex1 in 2024 to continue to fund strategic growth and decarbonization ▪ 1Q’24 capex is inline with the FY 2024 capex guidance in the range of $4.5bn-$5.0bn ▪ >30% of capex is being spent on strategic growth capex Capex1 ($bn) Strategic growth capex envelope 1Q’242 4.5 - 5.0 Decarbonization 0.3 - 0
Slide 16: Shareholder returns: More than 1/3 of shareholder equity repurchased since Sept’20
Shareholder returns: More than 1/3 of shareholder equity repurchased since Sept’20 Implementation of clearly defined capital return policy: Diluted no. of shares (outstanding1 & MCN) (millions) ▪ $0.50/share base dividend to be paid in 2 equal instalments in June and December 2024 -35% ▪ Company’s c
Slide 17: Smarter steels for people and planet
Smarter steels for people and planet ▪ Safety is our number one value Improving ▪ 3rd party audit of all our safety practices progressing safety ▪ While the audit is underway, we are building on and accelerating our existing safety improvement activities ▪ The Company is on the cusp of a step change
Slide 18: Appendix
Appendix 1Q 2024 FINANCIAL PERFORMANCE | page 19 Page 18
Slide 19: 1Q’24 EBITDA to net result
1Q’24 EBITDA to net result ($ million) BASIC EPS 1Q’24 Weighted Av. No. of shares (millions) 809 Earnings per share $1.16 (642) (63) (80) (233) 1,956 1,171 938 EBITDA 1 D&A Net interest expense Forex and Pre-tax result Taxes and non- Net income other fin. result controlling interests Page 19 1. EBIT
Slide 20: 1Q’24 EBITDA to free cash flow
1Q’24 EBITDA to free cash flow ($ million) (1,719) 1,956 (337) (100) (1,236) (1,413) (77) EBITDA Change in Net financial cost, Cash flow from Capex Minority dividends Free cash flow working capital 1 tax and others operations Page 20 1. Change in working capital: trade accounts receivable plus inven
Slide 21: 1Q’24 Net debt analysis
1Q’24 Net debt analysis ($ million) The Company sold its 4.23% 22.5m shares remaining stake in Erdemir in repurchased 1Q’24, generating total proceeds of $0.2bn 100 597 (224) 1,413 4,784 2,898 Net debt at Free cash flow 1 M&A Share buyback Forex and other Net debt at December 31, 2023 March 31, 2024
Slide 22: New segmentation (as from 1.1.24)
New segmentation (as from 1.1.24) FY 2023 EBITDA1,2 • As announced with ArcelorMittal’s (‘the Company’) fourth quarter 2023 financial results, the Company has amended its presentation of reportable segments and EBITDA. • The changes, applied from January 1, 2024, are as follows: o EBITDA is defined
Slide 23: 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 24: 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 57 95 50 35 Hetal Patel – General Manager Investor Relations Victoria Irving – ESG