Key figures for 2Q 2023

Key highlights:

  • Health and safety focus: Protecting employee health and wellbeing remains an overarching priority of the Company; LTIF2 rate of 0.73x in 2Q 2023 and 0.70x in 1H 2023
  • Improved operating results: A positive price-cost effect, offset in part by a marginal sequential decline in steel shipments to 14.2Mt, drove an improvement in 2Q 2023 operating income to $1.9bn (vs. $1.2bn in 1Q 2023); 1H 2023 operating income of $3.1bn vs. $1.3bn in 2H 20225
  • Robust per-tonne profitability: EBITDA increased to $2.6bn in 2Q 2023 (vs. $1.8bn in 1Q 2023) with 2Q 2023 EBITDA/t rising to $183/t (vs. $126/t in 1Q 2023); 1H 2023 EBITDA of $4.4bn vs. $3.9bn in 2H 20225
  • Higher net income: $1.9bn in 2Q 2023 (vs. $1.1bn in 1Q 2023) includes share of JV and associates net income of $0.4bn (vs. $0.3bn in 1Q 2023); 1H 2023 net income of $3.0bn (vs. $1.3bn in 2H 2022)5
  • Enhanced share value: 2Q 2023 basic EPS of $2.21/sh; last 12 months rolling ROE3 of 10.3%; book value per share4 now $66/sh following the repurchase of 5.7m shares during the quarter
  • Financial strength: The Company ended June 30, 2023 with net debt of $4.5bn, $0.7bn lower than the end of March 31, 2023, despite ongoing share buyback ($0.2bn) and dividends ($0.2bn). Gross debt of $10.5bn and cash and cash equivalents of $5.9bn as of June 30, 2023 (compared to $11.5bn and $6.3bn, respectively, as of March 31, 2023)
  • Continued strong FCF generation: The Company generated $1.0bn of free cash flow (FCF) in 2Q 2023 ($2.1bn net cash provided by operating activities less capex of $1.1bn and dividends paid to minorities)

Strategic update and outlook:

  • Progress in climate action gathering momentum:
    • Funding support: received European Commission (EC) approvals of the government funding support for our Spain, Belgium and France decarbonization projects; awaiting EC approvals for German government funding support
    • Projects advancing: >200 dedicated employees; Pre-FEED stage for DRI-EAF projects ongoing/near completion; preparing to move to FEED in DRI/EAF projects and commitments with core process equipment suppliers to lock schedule for supply
    • Technology advancements: plans announced between ArcelorMittal and John Cockerill to construct an industrial-scale low temperature, direct electrolysis plant (Volteron™) targeted to produce in phase 1 between 40-80ktpa of iron plates, starting in 2027
    • XCarb® progress: Our XCarb® recycled and renewably produced steel9 offering is gaining momentum, and will be produced by ArcelorMittal North America to supply General Motors
  • Focused on executing our growth plans and consistently applying our capital allocation and return policy:
  • In addition to paying in June 2023 the first installment of the $0.44/sh base dividend, the Company has repurchased 24.8 million shares so far in 2023
  • Recent acquisitions (ArcelorMittal Pecém6 (Brazil) and ArcelorMittal Texas HBI) and completed strategic capex projects (Mexico hot strip mill) are performing at levels above assumed normalized profitability13
  • Planned expansion of the AMNS India Hazira plant to ~15Mt capacity by 2026 progressing well; CGL4 on track for completion in 3Q 2023 to provide platform to launch our Magnelis product in the Indian market for the growing renewables and solar sectors

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

“We have delivered a strong set of financials in the first half of the year, which reflect the improved market conditions and also the positive impact of recent strategic acquisitions. Both ArcelorMittal Pecém in Brazil and ArcelorMittal Texas HBI in the United States are making a valuable contribution, generating above expected EBITDA. Meanwhile organic growth projects that will enhance our ability to produce higher added-value products in high-growth markets, as well as investments in our lower-carbon supply chains, are starting to demonstrate their potential.

We are making further strategic progress on our decarbonization agenda. Encouragingly, we have now received funding approval from the European Commission for our transformation projects in Belgium, Spain and France. This is an important milestone and we are now engaged in discussions with governments on the cost and availability of the clean energy needed to make these projects viable. On the technology front, we are encouraged by the progress in direct electrolysis which has enabled us to commit to building the world’s first low-temperature iron electrolysis pilot plant. We continue to see growing demand from customers for our XCarb products and earlier this week the design for the Paris 2024 Olympic and Paralympic torch was unveiled, which is being made with our reduced-carbon steel. The torch has a beautiful, intricate design and reflects the admirable ambition of Paris 2024 to halve the carbon footprint compared with previous games.

Looking ahead, the company is in a good position and focused on delivering further strategic progress in the second half.” Mr Aditya Mittal, ArcelorMittal Chief Executive Officer