Slide 1: 3Q 2023 Financial results
3Q 2023 Financial results November 9, 2023 Mr. 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: Devastating accident in Kazakhstan
Devastating accident in Kazakhstan Kostenko coal mine accident: 252 colleagues were working underground. 206 were safely evacuated Tragically, we lost 46 colleagues in this accident No words can do justice to the pain and heartbreak this devastating accident has caused We will always remembe
Slide 4: Commissioning a comprehensive 3rd party audit of all our safety practices
We are commissioning a comprehensive 3rd party audit of all our safety practices Following the devastating accident at the Kostenko mine in Kazakhstan, it is clear that we must do more to ensure that ArcelorMittal is set up to achieve the required safety transformation as swiftly as possible The
Slide 5: Building on and accelerating existing safety improvement activities
While the audit is underway, we are building on and accelerating our existing safety improvement activities In recent years, the Company has relaunched its safety strategy with a focus on twin pillars of risk management and cultural change: – The Group’s health and safety policy strengthened and r
Slide 6: Financial performance
Financial performance Page 6
Slide 7: 3Q'23 financial performance impacted by weaker steel segment results
3Q’23 financial performance impacted by weaker steel segment results EBITDA ($bn) and EBITDA/t ($/t) Steel performance: Negative price-cost effect across all $196/t $183/t $136/t $298/t $149/t divisions and lower shipments (Europe primarily impacted by seasonality incl. weaker construction-related
Slide 8: Steel shipments decline in 3Q'23 vs 2Q'23 primarily driven by European seasonality
Steel shipments decline in 3Q’23 vs 2Q’23 primarily driven by European seasonality (incl. weaker construction demand) and metal stock replenishment 3Q’23 vs. 2Q’23 steel shipments (Mt) -3.7% 14.2 (0.1) 0.0 Due to seasonal demand impacts (including weaker construction-related (0.7) demand) and metal
Slide 9: Challenging market backdrop…Steel spreads unsustainably low
Challenging market backdrop…Steel spreads unsustainably low ArcelorMittal weighted PMI1 Northern Europe dom. EXW Ruhr $/t (HRC spread, qtr av.) (latest data point: Oct-23) 900 60 800 56 700 52 600 500 48 400 44 300 40 200 100 Latest data point 36 4Q’23 QTD2 0 32 c We are experiencing real demand wea
Slide 10: ArcelorMittal results reflecting structural improvement
ArcelorMittal results reflecting structural improvement Reported EBITDA/t ($/t) Adjusted net income ($bn)1 350 15 300 250 10 200 5 150 100 3.9 149 0 50 0 (5) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M’23 9M’23 Strengthened asset
Slide 11: Balance sheet and capital allocation
Balance sheet and capital allocation
Slide 12: 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 growth over next decade +100Mt (100%) India Improving living Supply chain security 30% growth in Brazil demand standards Driven by
Slide 13: Our balance sheet is a strong foundation for growth and shareholder returns
Our balance sheet is a strong foundation for growth and shareholder returns Strong balance sheet (Net debt, $bn) Debt-adjusted FCF1,2 ($bn) 7.0 6.0 FCF 32.5 5.0 Annualized debt-adjusted FCF 21.8 4.0 $2.5bn average 10.1 3.0 adjusted FCF 2.2 4.3 3Q’08 2012 2017 2022 3Q23 2.0 1.0 Lower interest cost su
Slide 14: Strategic update
Strategic update Decarbonization: Strategic growth: Capital returns: Key 9M’23 figures: Targets: 2030 targets set (25% CO2e Acquisitions: Pecem (1Q’23) and Texas Balanced capital return policy: reduction globally, 35% for Europe) HBI plant (2Q’22) estimated to add minimum 50% of post-dividend annual
Slide 15: Decarbonization progress – projects and commercial momentum
Decarbonization progress – projects and commercial momentum Decarbonization projects advancing XCarb RRP gaining commercial momentum BF - DRI EAF projects journey to decarbonization XCarb® recycled and renewably produced1: A broadening range of products CO2 emissions 2Q’23 status – Finalising pre-
Slide 16: Our renewable energy projects continue to progress
Our renewable energy projects continue to progress Renewable energy a key ‘resource’ for decarbonized steel making $0.2bn JV with PCR; first hybrid solar and wind energy project in Argentina Argentina >30% of Acindar’s electricity requirements by 2024 (4Q 2023) 36MW entered commercial operatio
Slide 17: Organic investment in a portfolio of high return projects
Organic investment in a portfolio of high return projects FY’23 capex to be towards the mid-point of the previously communicated guidance range ($4.5bn-$5.0bn) Strategic capex 2021 – 2026 ($bn) Potential EBITDA impacts1 ($bn) 0.20 1.3 Outstanding spend 0.35 Spend to date 3.0 0.10 1.0 0.07 Outstand
Slide 18: AMNS India well positioned to participate in India's forecast demand growth
AMNS India well positioned to participate in India’s forecast demand growth Indian steel demand (longs/flats) 2019-2032 Mt Significant steel demand per capita over the last two decades driven by Government expenditure and steady economic growth +6% Significant Flat Long +7% Per-capita steel cons
Slide 19: Consistent capital returned to shareholders
Consistent capital returned to shareholders Having achieved its balance sheet targets, ArcelorMittal adopted a prudent and flexible capital allocation and return policy Fixed component: Conservative base dividend to be progressively increased over time Variable component: Minimum 50% of post-d
Slide 20: Smarter steels for people and planet
Smarter steels for people and planet • Safety is our number one value Improving • Commissioning a comprehensive 3rd party audit of all our safety practices safety • While the audit is underway, we are building on and accelerating our existing safety improvement activities • Applying world-class equi
Slide 21: 3Q 2023 Appendix
3Q 2023 Appendix Financials 23 Trade 31 Page 21
Slide 22: Transfer ownership of ArcelorMittal Temirtau, Kazakhstan
Transfer ownership of ArcelorMittal Temirtau, Kazakhstan On October 22, 2023, a preliminary agreement was signed with the Government of Kazakhstan for the transfer of ownership of ArcelorMittal Temirtau1 to the Republic of Kazakhstan The Company is focussed on concluding this transaction as soon
Slide 23: Financials
Financials Page 23
Slide 24: 3Q'23 EBITDA to net result
3Q’23 EBITDA to net result ($ million) BASIC EPS 3Q’23 Weighted Av. No. of shares (millions) 838 Includes contribution from Earnings per share $1.11 AMNS India and Chinese investees (662) (31) 285 (224) (304) 1,865 1,203 1,233 929 EBITDA D&A Operating Income from Net interest Forex and Pre-tax resul
Slide 25: 9M'23 EBITDA to net result
9M’23 EBITDA to net result ($ million) BASIC EPS 9M’23 Weighted Av. No. of shares (millions) 847 Includes contribution from AMNS India, Calvert, Earnings per share $4.59 Chinese and European investees (1,972) (142) 996 (474) (815) 6,292 4,320 4,700 3,885 EBITDA D&A Operating Income from Net interest
Slide 26: 3Q'23 EBITDA to free cash flow
3Q’23 EBITDA to free cash flow ($ million) (269) (315) 1,865 1,281 (1,165) (66) 50 EBITDA Change in Net financial cost, Cash flow from Capex Minority dividends Free cash flow² working capital¹ tax and others operations Page 26 1. Change in working capital: trade accounts receivable plus inventories
Slide 27: 9M'23 EBITDA to free cash flow
9M’23 EBITDA to free cash flow ($ million) (866) (1,109) 6,292 (3,163) 4,317 (131) 1,023 EBITDA Change in Net financial cost, Cash flow from Capex Minority dividends Free cash flow² working capital¹ tax and others operations Page 27 1. Change in working capital: trade accounts receivable plus invent
Slide 28: 3Q'23 Net debt analysis
3Q’23 Net debt analysis ($ million) (50) (187) 38 (64) 4,517 4,254 Net debt at June 30, 2023 Free cash flow¹ M&A² Share buyback Forex/others Net debt at September 30, 2023 1. Free cash flow defined as cash flow from operations less capex less dividends to minorities; 2. M&A primarily includes procee
Slide 29: 9M'23 Net debt analysis
9M’23 Net debt analysis ($ million) 75 742 185 340 1,699 4,254 (1,023) 2,236 4 Net debt at Free cash flow¹ M&A² MCB repayment³ Dividend to Share buyback Forex and other Net debt at December 31, 2022 ArcelorMittal September 30, 2023 shareholders 1. Free cash flow defined as cash flow from operations
Slide 30: Strong balance sheet
Strong balance sheet Liquidity1 at September 30, 2023 ($bn) Debt maturities at September 30, 2023 ($bn) 11.8 Other loans Commercial paper Bonds 0.9 Cash 6.3 0.4 0.6 0.5 2.6 0.2 0.2 Unused credit lines 5.5 0.3 0.9 1.0 1.0 1.2 0.7 Liquidity 2023 2024 2025 2026 2027 >2027 Liquidity lines Debt2 Ratings
Slide 31: Trade
Trade Page 31
Slide 32: CBAM to level the playing field; transition monitoring underway
CBAM to level the playing field; transition monitoring underway CBAM CBAM1 will play an important role to ensure a level playing field on carbon - to equalise the cost of carbon between domestic products and imports, but Import of Goods improvements are needed to achieve this EU Importers must rep
Slide 33: 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