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ArcelorMittal publishes 2016 annual review – ‘Sustainable progress’

ArcelorMittal (‘the Company’), the world’s leading steel and mining company, today publishes its 2016 integrated online annual review, ‘Sustainable progress’. The review marks a further step in the Company’s journey to fully integrated reporting, combining operational and financial performance reporting with progress made against its sustainable development (SD) framework, ArcelorMittal’s 10 SD Outcomes.

The review, which can be accessed online at http://annualreview2016.arcelormittal.com includes videos of several members of ArcelorMittal’s senior management team, including Chairman and CEO, Lakshmi Mittal, and ArcelorMittal Europe CEO and Group CFO, Aditya Mittal, commenting on key 2016 issues and events. Topics covered include: 2016 financial performance; progress made in the first year of the Company’s five-year strategic plan, Action 2020; steps taken in 2016 to strengthen the Company’s balance sheet; a review of the drivers behind 2016 global steel market dynamics, and the Company’s view on market outlook for the current year; how research and development is supporting the Company’s approach to SD; how steel is a perfect material for the circular economy, and how the Company is proactively addressing its carbon challenge.

Commenting, Lakshmi Mittal, said:

2016 was a year of important progress for ArcelorMittal, shaped by two key actions. The first was the successful US$3 billion capital raise which, combined with the proceeds from asset sales and the generation of positive free cash flow, enabled us to improve our net debt position to US$11.1 billion. The second was the launch of our new five-year strategic plan, Action 2020, which contributed US$0.9 billion to Ebitda in its first year. Along with improved market conditions and the introduction of trade tariffs in core markets, this supported a 20% improvement in Ebitda for the year to US$6.3 billion.

“Although the outlook for 2017 is encouraging, macro-economic challenges remain. While markets have improved and spreads are currently reasonably healthy, we remain aware of continued overcapacity and geopolitical fragility. A continued response to unfair trade practices will be critical. We are in favour of free trade, but it must be fair trade.

“In addition to our focus on short-term performance, we also need to ensure we are well positioned for long-term success. This means we need to understand how the world is evolving, not only from an economic and market perspective, but also in terms of our customers’ changing requirements and the social and environmental mega-trends that will shape our future. We have a world-class research and development team which continues to evolve our product offering for multiple customer segments, and our 10 SD outcomes enable us to track and adapt to social and environmental trends.   

“We made good progress in 2016, and I am confident we will continue to build on this in 2017. ArcelorMittal is well positioned to capture the opportunities afforded by our unique global position and will enjoy continued industrial leadership.”  

Key highlights of ArcelorMittal’s sustainable development progress in 2016 include:

  • Considerable progress in lost-time injuries, with twelve sites reducing their lost-time injury frequency rate by more than 50% over the year, and our Brazil segment reaching an lost-time injury frequency rate of 0.37. Overall the rate for the group remained stable at 0.82 incidents per million hours worked
  • Launch of a new Sustainable Innovation tool to ensure all new Global R&D projects are designed with sustainable development in mind
  • ArcelorMittal played a leading role in ResponsibleSteel™, a multi-stakeholder initiative to create a common, trusted, social and environmental certification standard for steel
  • The culmination of a number of strategic projects reinforced the Company’s view that low-carbon breakthrough technologies offer the most likely path to achieve more than incremental changes in carbon emissions reduction from steelmaking; given this, ArcelorMittal extended the scope of its world-first carbon capture and utilisation project at its Ghent plant in Belgium, which will now produce 63,000 tonnes of ethanol annually. Production is expected to commence in 2019
  • Development of our value creation model, showing the resources and investments we need to create steel and the value we create for stakeholders. In addition to financial value, examples include:
    • US$56 billion in direct economic contributions to employees, suppliers and other stakeholders, including US$8 billion paid in salaries, US$41 billion paid to the Company’s supply chain and US$4 billion paid in a variety of taxes
    • Development of 67 new products aimed at creating sustainable development benefits
    • 4.6% reduction in CO2 per tonne of steel produced by the group, from a 2007 baseline
    • 40 million tonnes of CO2 emissions avoided due to recycling of scrap and slag
    • 18% less dust, 6% less NOx and 22% less SOx emitted per tonne of steel than in 2010.
  • Considerable investments in environmental improvements, including a world-first installation of an innovative hybrid filter at the sinter plant in Zenica, Bosnia & Herzegovina, approval of a US$26 million project to install dust bag filters at Tubarão, Brazil, to reduce sinter emissions by 90% and a further US$92 million in three environmental projects at Dabrowa Gornicza, Poland.

The review is aligned with the Global Reporting Initiative’s G4 Sustainability Reporting Guidelines. It also includes ArcelorMittal’s annual Fact book for analysts and investors, which incorporates a range of financial, production and sustainability data.

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 19 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks.

Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate.

For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components people use in their everyday lives more energy efficient.

We are one of the world’s five largest producers of iron ore and metallurgical coal and our mining business is an essential part of our growth strategy. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow.

In 2016, ArcelorMittal had revenues of $56.8 billion and crude steel production of 90.8 million tonnes, while own iron ore production reached 55.2 million tonnes.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

Contact information ArcelorMittal Investor Relations

Europe +35247923198
Americas +13128993985
Retail +35247923198
SRI +442075431123
Bonds/Credit +33171921026

Contact information ArcelorMittal Corporate Communications

E-mail: press@arcelormittal.com
Phone: +442076297988

ArcelorMittal Corporate Communications

Paul Weigh +442032142419
France
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Sylvie Dumaine / Anne-Charlotte Creach


+33153707470

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