Slide 1: Financial results Q2 and 1H 2024
Q2 and and 2Q 2024 1H 1H 2023 financial 2024 Financialresults Results Leadership presentation August 1, 2024 27th July 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 2Q 2024 EXECUTIVE SUMMARY | page 4 APPENDIX | page 16 Page 3
Slide 4: Determined to reach zero harm
Determined to reach zero harm Company-wide audit of safety practices by dss+ is progressing on schedule. Group lost time injuries frequency rate (LTIFR)1 The groundwork was completed at the end of July 2024 and included: 155 onsite audits of the fatality prevention standards covering the Company’s
Slide 5: Continued strategic progress despite challenging market conditions
Continued strategic progress despite challenging market conditions Key 1H’24 figures: Organic growth: $1.8bn uplift in EBITDA potential by end 20262 Vega CMC (Brazil) completed 2Q’24 and 1GW India renewables project has begun commissioning; further projects to be completed $3.8bn EBITDA1 near term
Slide 6: Creating sustainable long-term value
Creating sustainable long-term value • ArcelorMittal continues to deliver robust results despite challenging market conditions EBITDA/t consistently above historical levels • Current market conditions are unsustainable swift and effective responses to unfair trade can support domestic market sha
Slide 7: Robust profitability in the face of challenging circumstances
Robust profitability in the face of challenging circumstances Global operating environment has been challenging: EBITDA/t ($/t) − Continued real demand deterioration mainly in Europe with weakness across most end-use markets • Light Vehicle Assembly down -3.3% Jan-May YoY 350 • Manufacturing outpu
Slide 8: We are at a cyclical low – current market conditions are unsustainable
We are at a cyclical low – current market conditions are unsustainable Overall demand remains lacklustre; no signs of restocking ArcelorMittal weighted PMI1 chart activity as customers maintain a “wait and see” approach 58 54 48.8 Nevertheless, apparent demand is expected to be higher 50 in 2H’2
Slide 9: ArcelorMittal to benefit from both cyclical recovery and structural growth
ArcelorMittal to benefit from both cyclical recovery and structural growth Cadence of EBITDA3 benefit from projects ($bn) 2.0 Organic strategic investment Inorganic investments1 0.2 Despite the challenging market environment, the Strategic capex envelope 0.5 Company continues to fund its growth pr
Slide 10: Strategic project delivery: Vega CMC (Brazil) completed
Strategic project delivery: Vega CMC (Brazil) completed Increase galvanized and cold rolled coil capacity through a new 700kt continuous annealing and continuous galvanizing combiline Additional high added value capabilities to serve the domestic market, replacing exported HRC with higher margin
Slide 11: ArcelorMittal's renewable energy portfolio continues to grow
ArcelorMittal’s renewable energy portfolio continues to grow Renewable energy a key ‘resource’ for decarbonized steel making Project started commissioning; $0.7bn investment combining solar/wind power (1GW) AM Green Energy is expected to provide >20% of AMNS India’s Hazira plant electricity Indi
Slide 12: Sustainable Solutions: progress towards the targeted doubling of EBITDA
Sustainable Solutions: progress towards the targeted doubling of EBITDA in the next 5 years Sustainable Solutions growth drivers: Progress in 1H’24 Develop a portfolio of final products utilising more sustainable ArcelorMittal Construction acquired Italpannelli Italy steel, and capturing green p
Slide 13: ArcelorMittal significantly expanding its iron ore capacity
ArcelorMittal significantly expanding its iron ore capacity ArcelorMittal’s mining operations Group iron ore production estimates Mt Global portfolio of 9 operating iron ore mines +50% Iron ore self sufficiency of 57% in FY’23 set to increase Future potential includes in future periods +25% Libe
Slide 14: Shareholder returns: 36% of shareholder equity repurchased since Sept'20
Shareholder returns: 36% of shareholder equity repurchased since Sept’20 Implementation of clearly defined capital return policy: Diluted no. of shares (outstanding1 & MCN) (millions) First $0.25/sh instalment of $0.50/share base dividend paid in June 2024 (second instalment due in Dec’24) -36%
Slide 15: Smarter steels for people and planet
Smarter steels for people and planet Safety is our number one value Improving 3rd party audit of all our safety practices on track for completion by 3Q’24 safety While the audit is underway, we are building on and accelerating our existing safety improvement activities The Company is on the
Slide 16: Appendix
Appendix 2Q 2024 FINANCIAL PERFORMANCE | page 17 STRATEGIC GROWTH| page 25 SUSTAINABLE DEVELOPMENT | page 31 OUTLOOK | page 34 Page 16
Slide 17: Financial performance
Financial performance Page 17
Slide 18: 2Q'24 EBITDA impacted by uncontrollable factors and lower IO price
2Q’24 EBITDA impacted by uncontrollable factors (Mexico and AMMC) and lower IO price EBITDA1 bridge between 1Q’24 and 2Q’24 ($m) North America: EBITDA down QoQ primarily due to the impact of the illegal blockade in Mexico and a negative price-cost 1,956 impact 1,862 Brazil: EBITDA up QoQ Hig
Slide 19: Balance sheet strength supports consistent investment and returns
Balance sheet strength supports consistent investment and returns Net debt ($bn) Net debt increased to $5.2bn at the end of June 30, 2024, as +0.7 compared to $4.8bn at the end of March 31, 2024 4.8 5.2 4.5 4.3 Due to the seasonality of working capital needs, the 2.9 Company believes that a year
Slide 20: Swift & effective responses to market disruption can support domestic industry recovery
Swift & effective responses to market disruption can support domestic industry recovery EU safeguards Effective July 1, 2024, the EU extended steel safeguards for another two-years New 15% HRC quota cap for “other countries” limited to <142kt per quarter1. At least 4 countries exceeded this cap
Slide 21: 1H'24 EBITDA to net result
1H’24 EBITDA to net result ($ million) BASIC EPS 1H’24 Weighted Av. No. of shares (millions) 802 Earnings per share $1.80 (1,277) (70) (513) 3,818 (516) 1,958 1,442 EBITDA 1 D&A Net interest expense Forex and Pre-tax result Taxes and non- Net income other fin. result controlling interests Page 21 1.
Slide 22: 1H'24 EBITDA to free cash flow
1H’24 EBITDA to free cash flow ($ million) (1,635) 3,818 (1,210) 973 (2,221) (1,332) (84) EBITDA Change in Net financial cost, Cash flow from Capex Minority dividends Free cash flow working capital 1 tax and others operations Page 22 1. Change in working capital: trade accounts receivable plus inven
Slide 23: 1H'24 Net debt analysis
1H’24 Net debt analysis ($ million) 1Q’24: Company sold its 4.23% remaining stake in Erdemir ($0.2bn); 2Q’24: receipt of $0.1bn for the first of four annual 34.7m shares installments related to the Kazakhstan sale repurchased and purchase of Italpannelli (Italy/Spain) for $0.2bn 200 82 890 (178) 1,3
Slide 24: Robust balance sheet and strong liquidity
Robust balance sheet and strong liquidity positive outlook with both rating agencies Liquidity1 at June 30, 2024 ($bn) Debt maturities at June 30, 2024 ($bn) 11.4 Other loans Commercial paper Cash and cash equivalents 5.9 Bonds 0.8 3.7 0.4 0.8 0.7 Unused credit lines 5.5 0.3 0.9 1.2 1.0 1.0 0.3 Li
Slide 25: Strategic growth
Strategic growth Page 25
Slide 26: 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 Improving living Supply chain security growth over next decade standards Driven by all markets +100Mt (100%) India Driven by emerg
Slide 27: Capex in 2024 to continue to fund strategic growth and decarbonization
Capex1 in 2024 to continue to fund strategic growth and decarbonization 1H’24 capex is in line with the FY’24 capex guidance range of $4.5bn-$5.0bn >30% of capex is being spent on strategic growth projects Capex1 ($bn) Strategic growth capex envelope 1H’242 4.5 - 5.0 Decarbonization 0.3 - 0.4 Ve
Slide 28: 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 12 strategic projects to achieve $1.8bn1 additional EBITDA potential 2H 2021 1H 2024 Projects nearing 2025 2026 completion Mexico HSM: Increase Vega (Brazil): Increase Barra Mansa (Brazil) AMNS India capacity
Slide 29: Further organic growth plans under development in the US, Liberia and India
Further organic growth plans under development in the US, Liberia and India US: ArcelorMittal Texas – plans to double capacity 2Mt HBI capacity connected to low cost natural gas Plant hit production records in 2023 Plans under development to double capacity and Liberia: Optimize ore body to su
Slide 30: Net M&A proceeds of $0.2bn in 1H'24; Vallourec expected to complete in 3Q'24
Net M&A proceeds of $0.2bn in 1H’24; Vallourec expected to complete in 3Q’24 M&A transactions impacting 1H’24 Italpannelli Italy/Spain: Construction business was acquired for Italy and Spain $0.2bn in 2Q’24 Erdemir stake sale: Company sold its 4.23% remaining stake in Offering of insulated san
Slide 31: Sustainable development
Sustainable development Page 31
Slide 32: Leveraging strengths to lead the market in low-emissions steel solutions
Leveraging strengths to lead the market in low-emissions steel solutions Strengths & advantages: • Existing EAF footprint 36 EAFs in the group (including JVs) • Existing DRI capabilities we are the world’s largest DRI producer • Innovation R&D capabilities supporting “smart carbon” steel makin
Slide 33: Low-carbon solutions: continuing to lead the market with the widest offering
Low-carbon solutions: continuing to lead the market with the widest offering XCarb® Low-Carbon Emissions Steel Our XCarb® products volumes are on track to double in 2024 vs 2023 Increased our XCarb® recycled and renewably produced (RRP) low-carbon emissions product range: ArcelorMittal Europe-Fl
Slide 34: Outlook
Outlook Page 34
Slide 35: 2024 apparent demand outlook
2024 apparent demand outlook Forecast ASC1 demand outlook (2024F vs. 2023) Overall demand outlook for 2024 vs. 2023: Global ex-China apparent steel consumption (ASC) forecast to grow by +2.5% to +3.0% in 2024 (slightly moderated from previous US Flat2 +1.0% to +3.0% forecast of +3.0% to +4.0% in p
Slide 36: ArcelorMittal contacts
ArcelorMittal contacts Daniel Fairclough – Global Head Investor Relations Benoit Cuisiniere – Manager Investor Relations (France) daniel.fairclough@arcelormittal.com +44 207 543 1105 benoit.cuisiniere@arcelormittal.com +33 1 57 95 50 38 Hetal Patel – General Manager Investor Relations Victoria Irvin