Slide 1: 2Q 2023 and 1H 2023 Financial results and strategic update
2Q 2023 and 1H 2023 Financial results and strategic update July 27, 2023 Aditya Mittal, Chief Executive Officer Genuino Christino, Chief Financial Officer Construction has begun on ArcelorMittal’s new headquarters in the Kirchberg district of Luxembourg
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: Sustainable value creation
Sustainable value creation Page 3
Slide 4: Safety an overarching priority of the Company: Determined to reach zero harm
Safety an overarching priority of the Company: Determined to reach zero harm Key 1H’23 progress: Health and safety performance (LTIFR1) ▪ Benchmarking our safety culture: Global safety perception 3.5 survey across 220,000 personnel (incl. contractors), >70% responded 3.0 ▪ Survey results driving bes
Slide 5: Continued strategic progress
Continued strategic progress Decarbonization: Strategic growth: Capital returns: Key 1H’23 figures: Targets: 2030 targets set (25% CO2e Acquisitions: Estimated to add Base dividend: $0.44/sh (1st equal reduction globally, 35% for Europe) normalized EBITDA of ~$0.5bn, including: instalment paid Jun’2
Slide 6: Financial performance
Financial performance Page 6
Slide 7: Solid performance in 1H'23 reflects stronger underlying business
Solid performance in 1H’23 reflects stronger underlying business EBITDA/t ($/t) ▪ $4.4bn EBITDA in 1H’23; EBITDA/t of $155/t Per tonne profitability reflects structural improvements ▪ $3.0bn net income 1H’23 and EPS of $3.47/sh ▪ Includes $0.7bn share of JV and associates income reflecting good perf
Slide 8: Higher spreads driving improved profitability in 2Q'23 vs. 1Q'23
Higher spreads driving improved profitability in 2Q’23 vs. 1Q’23 EBITDA ($bn) +13.0% ▪ Improved steel performance: +43.0% ‒ Steel business benefiting from lagged prices, lower raw material 5.2 4.4 3.9 and other costs (including energy) → spread expansion 1.8 2.6 ‒ Positive price-cost effect across a
Slide 9: Steel spreads remain above historical levels
Steel spreads remain above historical levels ▪ Following the strong momentum in earlier part of the year, the decline in the raw material basket (RMB1) led to a moderation in steel prices during 2Q’23 ▪ Steel spreads remain supported by low system inventories US, Euro and Chinese HRC prices and RMB1
Slide 10: Strategic growth
Strategic growth Page 10
Slide 11: Growth investments continue to perform at or above expectations
Growth investments continue to perform at or above expectations ArcelorMittal Texas HBI ▪ Plant running at full capacity in 1H’23 → 1H’23 production of 1Mt (record performance) ▪ 2H’23 normal scheduled maintenance expected but shipment rate maintained ArcelorMittal Pecem ▪ Plant has been integrated
Slide 12: Decarbonization progress
Decarbonization progress Phase 1 through 2030 ▪ 1GW renewable energy project in India scheduled for completion in 1H 2024 Securing ▪ ArcelorMittal Brasil formed a renewable energy JV with Casa dos Ventos to construct 554MW wind power project decarbonization ▪ Four scrap recycling businesses acquired
Slide 13: Liberia project revised to maximize resource potential
Liberia project revised to maximize resource potential Expansion to 15Mtpa1 is progressing: Capacity expansion profile (Mt) ▪ Detailed construction design has been finalized and key equipment and Modular expansion construction contracts have been awarded approach. First concentrate by 4Q’24 and oper
Slide 14: Brazil projects: Monlevade updated; other growth projects on plan
Brazil projects: Monlevade updated; other growth projects on plan Increase wire rod capacity by 1Mtpa (to 2.25Mtpa) to gain share in HAV products in high growth market: Project capex has been revised from $0.5bn to $0.8bn: scope changes related to more automation, equipment Monlevade upgrades and mo
Slide 15: 2023 capex guidance
2023 capex guidance ▪ 2Q’23 capex of $1.1bn; 1H’23 capex of $2.0bn ▪ FY’23 capex1 guidance remains unchanged in the range of $4.5bn-$5.0bn 2023 capex ($bn) 5.0 4.5 0.4 0.4 1.6 Decarbonization 1.3 Strategic envelope Base / normative 2.0 0.1 0.6 2.8 3.0 1.3 1H’23 2023F low end of range 2023F top of ra
Slide 16: Strategic capex envelope updated
Strategic capex envelope updated ▪ The Monlevade completion date has moved to 2H 2026 (previously 2H 2024) ▪ Ukraine pellet plant has been “on hold” and is now removed from the strategic capex envelope Strategic capex 2021 – 2026 ($bn) Potential EBITDA impacts1 ($bn) 0.20 1.3 Outstanding spend 0.35
Slide 17: Outlook
Outlook Page 17
Slide 18: Real activity remains lackluster; but demand outlook supported by low inventories
Real activity remains lackluster; but demand outlook supported by low inventories ▪ Real demand remained broadly stable in 1H’23 ArcelorMittal weighted PMI1 ▪ EU/US sentiment has weakened → underlying real demand is expected to moderate in 2H’23. However, given the destock in 58 2H’22, apparent dema
Slide 19: 2023 apparent demand outlook
2023 apparent demand outlook Forecast ASC1 demand outlook ▪ Overall demand outlook for 2023 vs. 2022: (2023F vs. 2022) − Global ex-China ASC forecast to grow by +1.0% to +2.0% (previous forecast of +2.0% to +3.0%) US2 -2.0% to +0.0% − US ASC forecast moderated to reflect weakness in long products an
Slide 20: 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 21: Sustainable value creation
Sustainable value creation Page 21
Slide 22: Smarter steels for people and planet
Smarter steels for people and planet • Safety is our number one priority Improving safety • Moving to a ‘predict and prevent’ culture, focussed on detecting and reducing the precursors of fatalities and severe injuries • Applying world-class equipment and procedures that achieve our World class obje
Slide 23: 2Q 2023 and 1H 2023 Appendix
2Q 2023 and 1H 2023 Appendix Sustainable development 24 Financial performance 28 JV & Associates investments 36 Page 23
Slide 24: Sustainable development
Sustainable development Page 24
Slide 25: Taking action: evolving our asset base and investing in renewables
Taking action: evolving our asset base and investing in renewables Corpus Christi, Texas Securing the Securing the Transitioning our Investing in metallics required metallics required asset base renewable energy for low-emissions for low-emissions sources steelmaking steelmaking Plans announced to t
Slide 26: Striving to lead the industry to low carbon steel: Investing in direct electrolysis technology
Striving to lead the industry to low carbon steel: Investing in direct electrolysis technology Direct electrolysis - Volteron™ ▪ Investing in Direct Electrolysis with the construction of world’s first industrial- scale low temperature, iron electrolysis plant ▪ The first phase will produce between 4
Slide 27: Belgium: Smart carbon technology developments
Belgium: Smart carbon technology developments Carbon capture and usage - Steelanol, Ghent Steelanol, Ghent ▪ Successful commencement of production of first samples through Lanzatech’s bio- based process ▪ The €200m Steelanol plant has the annual capacity to produce 80m litres of ethanol → potential
Slide 28: Financial performance
Financial performance Page 28
Slide 29: 1H'23 EBITDA to net result
1H’23 EBITDA to net result ($ million) BASIC EPS 1H’23 Weighted Av. No. of shares (millions) 851 Includes contribution from AMNS India, Calvert and Earnings per share $3.47 European investees (1,310) (111) 711 (250) (511) 4,427 3,467 3,117 2,956 EBITDA D&A Operating Income from Net interest Forex an
Slide 30: 1H'23 EBITDA to free cash flow
1H’23 EBITDA to free cash flow ($ million) (597) (794) 4,427 (1,998) 3,036 (65) 973 EBITDA Change in Net financial cost, Cash flow from Capex Minority dividends Free cash flow² working capital¹ tax and others operations Page 30 1 Change in working capital: trade accounts receivable plus inventories
Slide 31: 1H'23 Net debt analysis
1H’23 Net debt analysis ($ million) (100) 704 185 340 2,125 4,517 (973) 2,236 4 Net debt at Free cash flow¹ M&A² MCB repayment³ Dividend to Share buyback Forex and other Net debt at Dec 31, 2022 ArcelorMittal June 30, 2023 shareholders 1. Free cash flow defined as cash flow from operations less cape
Slide 32: Stable shipments 1Q'23 vs. 2Q'23
Stable shipments 1Q’23 vs. 2Q’23 2Q’23 vs. 1Q’23 steel shipments1 (Mt) Impact of AM Pecem Impact of Dunkirk & Gijon outages Primarily related to Calvert JV (0.5) 14.5 0.6 0.0 (0.2) (0.2) 14.2 1Q’23 NAFTA Brazil Europe ACIS Elim. 2Q’23 (Including ArcelorMittal Pecem) Page 32 1. 1Q 2023 includes shipm
Slide 33: Strong balance sheet
Strong balance sheet Liquidity1 at June 30, 2023 ($bn) Debt maturities at June 30, 2023 ($bn) 11.4 Other loans Commercial paper Bonds 1.0 Cash 5.9 0.6 0.5 2.6 0.4 0.2 Unused credit lines 5.5 0.4 0.9 1.0 1.0 1.2 0.7 Liquidity 2023 2024 2025 2026 2027 ≥2027 Liquidity lines Debt2 : Ratings: ▪ $5.5bn li
Slide 34: Strong balance sheet supports consistent returns and strategic optionality
Strong balance sheet supports consistent returns and strategic optionality Net debt ($bn) Annual interest cost ($bn) 32.5 1.9 1.8 26.5 1.5 22.5 1.3 21.8 18.8 19.7 1.1 16.1 15.8 15.7 10.2 0.8 11.1 10.1 0.6 0.6 9.3 6.4 0.4 4.0 4.5 0.3 2.2 0.2 0.1 1H’23 1H’23 3Q’08 2008 2014 2016 2009 2010 2011 2012 20
Slide 35: Building a track record of consistent returns to shareholders
Building a track record of consistent returns to shareholders Implementation of clearly defined capital return policy: Diluted number of shares (outstanding1 & MCN) (millions) ▪ $0.44/share base dividend → 1st equal instalment paid in ▪ At maturity (May 18, 2023) remaining MCN converted to 57.1m Jun
Slide 36: JV and associates investments
JV and associates investments Page 36
Slide 37: AMNS India: doubling of capacity underway; CGL4 near completion
AMNS India: doubling of capacity underway; CGL4 near completion Performance: 1H’23 vs. 1H’22 improved due to higher shipments and lower costs Crude steel production (Mt) Growth: $7.4bn1 capex to expand capacity, increase value add and leverage infrastructure +4.7% • 8.6Mt capacity facility - debottl
Slide 38: Calvert: 1.5Mt EAF project progressing
Calvert: 1.5Mt EAF project progressing Profitability improved in 2Q’23 Hot strip mill production (Mt) ▪ EBITDA improvement during the quarter primarily due to higher sales prices Quarterly Actual/Annualised ▪ HSM reliability and productivity continue to progress Construction of new 1.5Mt EAF & caste
Slide 39: Growth through JV and associate: China
Growth through JV and associate: China VAMA (50%): Produces steel for high-end applications in Auto industry → new CGL 450kt line completed ▪ VAMA, our 50:50 JV with Hunan Valin, is an advanced facility VAMA plant focused on rolling steel for demanding automotive applications ▪ Project started Feb’2
Slide 40: 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