Key figures for 1Q 2023

1Q 2023 Key highlights:

  • Health and safety focus: Protecting the health and wellbeing of the employees remains an overarching priority of the Company. Moving to a ‘predict-and-prevent’ culture with a particular focus on proactively reporting – and responding to – instances with the specific potential for serious injuries or fatalities (proactive PSIFs)2; LTIF2 rate of 0.64x in 1Q 2023
  • Operating performance improved: 1Q 2023 operating income of $1.2bn (vs. operating loss of $0.3bn3,4 in 4Q 2022); EBITDA of $1.8bn in 1Q 2023 (vs. $1.3bn in 4Q 2022) and EBITDA/t of $126/t in 1Q 2023 (vs. $100/t in 4Q 2022)
  • Enhanced share value: 1Q 2023 basic EPS of $1.28/sh vs. $0.30/sh in 4Q 2022, rolling twelve month ROE5 of 14.2%; 1Q 2023 book value per share6 of $64/sh
  • Net income: $1.1bn in 1Q 2023 (vs. $0.3bn7 in 4Q 2022) includes share of JV and associates net income of $0.3bn (vs. $0.1bn in 4Q 2022)
  • Financial strength: The Company ended March 2023 with net debt of $5.2bn (vs. $2.2bn at the end of December 2022) primarily due to M&A outflow (mainly the $2.2bn acquisition of ArcelorMittal Pecém formerly known as CSP18), share buyback ($0.5bn) and seasonal investment in working capital ($0.8bn). Gross debt of $11.5bn and cash and cash equivalents of $6.3bn as of March 31, 2023 (compared to $11.7bn and $9.4bn, respectively, as of December 31, 2022)
  • A platform for investment and consistent capital returns:
    • Recent acquisitions (ArcelorMittal Pecém (Brazil) and ArcelorMittal Texas HBI) and completed strategic capex projects (Mexico hot strip mill) performing well relative to assumed normalized levels of profitability
    • Capex in 1Q 2023 of $0.9bn is in line with our full year guidance of within the range of $4.5bn-$5.0bn
    • The Company has repurchased 19.1m shares so far in 2023, completing its previously announced buyback program and bringing the total reduction in diluted share count since September 30, 20208 to 31%
    • Following the approval granted by shareholders at the 2023 AGM, the Company announces its intention to repurchase up to 85 million shares through May 2025. The level of repurchases will reflect (and is subject to) the level of post-dividend FCF generated over the period. The Company’s capital return policy defines that a minimum 50% of post-dividend annual FCF is returned to shareholders through buybacks
    • $0.44/sh base dividend to be paid in 2 equal instalments of $0.22/share in June 2023 and December 2023
  • Continued progress in climate action: In April 2023, the Company announced that ArcelorMittal Brasil will form a renewable energy joint venture partnership with Casa dos Ventos to develop a 554MW wind power project in northeast Brazil

Financial highlights (on the basis of IFRS 1,2)

“Market conditions improved as anticipated in the first quarter, with the end of customer destocking supporting apparent steel consumption growth and a rebound in steel spreads. This, alongside better general economic sentiment, resulted in good growth in first quarter profits as well as higher EBITDA per tonne. The improvements we have seen in market conditions are not yet fully reflected in our results due to pricing lags, and we expect a further increase in profitability in the second quarter.

We remain confident in our ability to generate healthy free cash flow this year and have therefore announced a new share buyback today, while continuing to invest in growth and the energy transition. During the first quarter we completed the acquisition of CSP and, also in Brazil, announced a new renewable energy joint venture, which aims to secure and decarbonize a considerable proportion of ArcelorMittal Brazil’s future electricity needs.

Improving group safety performance remains the highest priority. We continue to intensify efforts to improve our results, including evolving towards a “predict and prevent” culture centered around the recorded number of accidents that have the potential to result in serious injuries. I am cautiously optimistic we will be able to demonstrate the progress expected of us this year.

To conclude, the first quarter has unfolded as we expected. Geopolitical and economic uncertainty remains, but ArcelorMittal continues to demonstrate its ability to perform in all market conditions which bodes well for the remainder of this year.” Mr Aditya Mittal, ArcelorMittal Chief Executive Officer