Slide 1: 1Q 2022 Results
1Q 2022 Results May 5th 2022 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 expectation
Slide 3: 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 3.5 ▪ Global H&S team streng
Slide 4: Adapting Kryvyi Rih to ensure safety of people and integrity of assets
Adapting Kryvyi Rih to ensure safety of people and integrity of assets ▪ First priority is safety of our people working in ArcelorMittal Kryvyi Rih ▪ At the onset of the war in Ukraine, the Company announced the suspension of operations to protect its people and assets ▪ Since then we have slowly re
Slide 5: A strong start to the year: Key 1Q'22 figures
A strong start to the year Key 1Q’22 figures: Decarbonization leadership: Strategic growth: Capital returns: ▪ $5.1bn EBITDA 2030 targets set (25% CO2e $3.65bn strategic capex envelope to $7.7bn capital returned to reduction globally, 35% for Europe) generate $1.2bn additional EBITDA shareholders si
Slide 6: Market conditions supportive
Market conditions supportive Apr’22 54.1: down from 58.5 ArcelorMittal weighted PMI* chart peak in Jul’21 but still signalling real demand expansion ▪ Pace of the real demand recovery has moderated: non- 58 automotive demand continues to recover whilst supply chain 54 effects have continued to impac
Slide 7: Strong operating results for 1Q'22
Strong operating results for 1Q’22 EBITDA ($bn) ▪ Solid EBITDA performance: 1Q’22 EBITDA of $5.1bn (stable +0.6% QoQ) ▪ Strong steel performance: 5.1 5.1 ‒ Europe (+19.1%) and NAFTA (+9.0%) EBITDA 3.2 improvements QoQ offsetting ACIS (due to the Russia/Ukraine conflict) and Brazil negative price-cos
Slide 8: Capex funding strategic growth + decarbonization
Capex funding strategic growth + decarbonization Capex ($bn) ▪ 1Q’22 capex of $0.5bn Decarbonization ▪ FY 2022 capex guidance unchanged and includes: Strategic envelope ▪ $0.3bn spend on decarbonization projects Base / normative (Including carry over of normative from 2021) ▪ Increased strategic cap
Slide 9: Solid contribution from JV and Associates
Solid contribution from JV and Associates ▪ 14% of group net income: $559m income from associates, JVs and other investments in 1Q’22 (vs. $383m in 4Q’21) including $117m dividend from Erdemir ▪ $12.1bn book value of JV & Associates (incl. other investments) as of March 31, 2022 AMNS India (60%): So
Slide 10: Driving per share value development
Driving per share value development Enhanced share value: ▪ Basic EPS increased +9.0% QoQ to $4.28/sh; 1Q 2022 annualized ROE of 36%; book value per share of $57 Basic earnings per share $/t Book value per share $/t Return on equity* % (rolling 12 months basis) +65% 4.17 4.28 57 34 36 3.93 51 3.47 4
Slide 11: Acquisition of 80% stake in Corpus Christi HBI plant facilitates decarbonization
Acquisition of 80% stake in Corpus Christi HBI plant facilitates decarbonization ArcelorMittal has signed an agreement to acquire an 80% HBI plant in Corpus Christi, Texas shareholding in voestalpine’s world-class Hot Briquetted Iron (‘HBI’) plant located in Corpus Christi, Texas ▪ Strategic acquisi
Slide 12: New renewable energy project in India creates significant value
New renewable energy project in India creates significant value Renewable energy a key “resource” for decarbonized steel making: Schematic – Solar Wind Hybrid Project and Pumped Hydro Storage ▪ $0.6bn investment combining solar and wind power (975 MW nominal capacity), supported by Greenko’s hydro p
Slide 13: Strategic capex envelope increased
Strategic capex envelope increased → to drive significant incremental value Strategic capex 2021 – 2024 ($bn) Potential EBITDA impacts*** ($bn) 3.65 0.07 1.2 0.20 0.60 0.25 0.50 Completed 4Q’21: Ramp 0.80 0.07 up in 2022 0.30 0.07 0.25 0.05 going to plan Outstanding spend 0.10 0.15 0.10 0.35 0.25 0.
Slide 14: Consistently returning capital to shareholders
Consistently returning capital to shareholders → reducing shares to create value Implementation of clearly defined capital return policy: Returns to shareholders since Sept 2020 ($bn) ▪ $7.7bn returned since Sept 2020 as of March 31, 2022 9.5 7.7 0.3 1.0 ▪ Company completed the 1st $1bn SBB on April
Slide 15: Strong balance sheet supports consistent returns and strategic optionality
Strong balance sheet supports consistent returns and strategic optionality Net debt ($bn) Interest cost ($bn) 32.5 1.9 1.8 26.5 22.5 1.5 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 0.4 0.3 4.0 3.2 0.2 3Q’08 1Q’22 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 16: 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 normalised EBITDA Cost advantage ▪ Leaner, more efficient corporate office ▪ Optimized footprint a
Slide 17: 1Q'22 Appendix
1Q’22 Appendix SUSTAINABLE LEADERSHIP | page 18 STRATEGIC GROWTH | page 23 FINANCIAL PERFORMANCE | page 26 Page 17
Slide 18: Sustainable leadership
Sustainable leadership
Slide 19: Global strategic leadership on decarbonization
Global strategic leadership on decarbonization • Plans aligned with company 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 • 80% acquisition of Corp
Slide 20: Sustainable development progress in our Integrated Annual Review & Factbook
Sustainable development (SD) progress in our Integrated Annual Review & Factbook Published April 2022, covering: ▪ Driving a relentless focus on safety ▪ Transforming for long-term growth – strategic growth and new products ▪ Our Roadmap to Net Zero ▪ Sustainability leadership ▪ Strong governance Tr
Slide 21: Complete low-CO2 solution for construction customers
Complete low-CO2 solution for construction customers + Recycled and renewably produced ▪ Steligence® solutions enable material-efficient steel solutions for architects and engineers ▪ Increasingly integrated into our Steligence® solutions are our XCarb™ products for the construction of green buildin
Slide 22: First ResponsibleSteel site certification in the Americas
First ResponsibleSteel site certification in the Americas ArcelorMittal follows its industry-first site certifications in Europe with Americas-first certification in Brazil ▪ ArcelorMittal Tubarao, March 2022: first site in the Americas to receive ▪ Unique multistakeholder ESG standard for steel cer
Slide 23: Strategic growth
Strategic growth
Slide 24: Mexico hot strip mill - First coils produced Dec'21
Mexico hot strip mill - First coils produced Dec’21; ramp up as per plan HSM project to optimize capacity and improve mix: HSM ramp up progress in 2022 80% ▪ 2.5Mt Hot strip mill (HSM) to capture additional margin on selling HRC into domestic market vs. slab exports 60% 40% ▪ Leveraging highly compe
Slide 25: Other strategic envelope projects underway
Other strategic envelope projects underway Expansion to increase wire rod capacity by 1Mtpa (to 2.25Mtpa) to gain share in HAV Monlevade products in this high growth market. Detailed engineering is ongoing. Piling and civil works under (Brazil) negotiation. Technical discussions started with erectio
Slide 26: Financial performance
Financial performance
Slide 27: 1Q'22 Steel operating results
1Q’22 Steel operating results 1Q’22 to 4Q’21 highlights 4Q’21 to 1Q’22 steel shipments (Mt) ▪ Europe: EBITDA +19.1% QoQ (EBITDA/t at $289/t) -2.7% ▪ primarily due to a positive price-cost effect with 15.8 higher contract pricing more than offsetting higher raw material costs ▪ NAFTA: EBITDA +9.0% Qo
Slide 28: Improved Mining performance in 1Q'22
Improved Mining performance in 1Q’22 1Q’22 vs. 4Q’21 highlights Mining EBITDA ($m) ▪ 1Q’22 EBITDA increased +41.8% due to the positive impact of higher iron ore reference prices +28.2% offset in part by +41.8% lower iron ore shipments (-6.3%) 838 ➢ Lower production in 1Q’22 was primarily due to lowe
Slide 29: 1Q'22 EBITDA to net result
1Q’22 EBITDA to net result ($ million) Includes results from AMNS India, AMNS Calvert, and BASIC EPS 1Q’22 European investees and includes $117m Erdemir Weighted Av. No. of shares (millions) 964 annual dividend received Earnings per share $4.28 (51) (140) (647) 559 (676) 5,080 4,801 4,433 4,125 EBIT
Slide 30: 1Q'22 EBITDA to free cashflow
1Q’22 EBITDA to free cashflow ($ million) (2,047) 5,080 (999) (529) (12) 2,034 1,493 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 capital: trade accounts receivable plus inventorie
Slide 31: 1Q'22 net debt analysis
1Q’22 net debt analysis ($ million) (1,493) 76 504 35 4,030 Company repurchased 18.3m Cash outflow primarily related to the acquisition of shares for a total value of $569m (of which $504m was paid by the 3,152 the Scottish scrap end of March 31, 2022 and recycling business John $65m settled early A
Slide 32: Strong balance sheet
Strong balance sheet Liquidity* at March 31, 2022 ($bn) Debt maturities at March 31, 2022 ($bn) Other loans Commercial paper Bonds 11.1 0.8 Cash 5.6 0.7 0.3 0.3 0.2 1.6 Unused credit lines 5.5 1.2 1.2 1.0 0.9 0.1 0.4 Liquidity 2022 2023 2024 2025 2026 ≥2026 Liquidity lines Debt**: Ratings: ▪ $5.5bn
Slide 33: 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 Chanelle George – Investor Relations Assi