• Analyst & investor call registration - link
• Earnings Release - EN - PDF
• Analysts slides – EN – PDF
• Analyst model - XLS

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 $0.3bn^3,4 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):

Commenting, Aditya Mittal, ArcelorMittal Chief Executive Officer, said:

“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.”

First quarter 2023 earnings analyst conference call

ArcelorMittal management will host a conference call for members of the investment community to present and comment on the three-month period ended March 31, 2023 on: Thursday May 4, 2023, at 9.30am US Eastern time; 14.30pm London time and 15.30pm CET.

Participants will need to pre-register to receive dial-in details and an individual pin-code to access the call using the link below:

https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=5379332&linkSecurityString=7019f3968

You can also listen to the live audio webcast via this link: https://interface.eviscomedia.com/player/1151/

Please visit the results section on our website to listen to the reply once the event has finished https://corporate.arcelormittal.com/investors/results

Footnotes

1. The financial information in this press release has been prepared consistently with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and as adopted by the European Union. The interim financial information included in this announcement has also been prepared in accordance with IFRS applicable to interim periods, however this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standard 34, “Interim Financial Reporting”. The numbers in this press release have not been audited. The financial information and certain other information presented in a number of tables in this press release have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column. In addition, certain percentages presented in the tables in this press release reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers. Segment information presented in this press release is prior to inter-segment eliminations and certain adjustments made to operating results of the segments to reflect corporate costs, income from non-steel operations (e.g. logistics and shipping services) and the elimination of stock margins between the segments. This press release also includes certain non-GAAP financial/alternative performance measures. ArcelorMittal presents EBITDA and EBITDA/tonne, free cash flow (FCF) and ratio of net debt/LTM EBITDA which are non-GAAP financial/alternative performance measures, as additional measures to enhance the understanding of its operating performance. ArcelorMittal also presents Equity book value per share and ROE as shown in footnotes to this press release. ArcelorMittal believes such indicators are relevant to provide management and investors with additional information. ArcelorMittal also presents net debt and change in working capital as additional measures to enhance the understanding of its financial position, changes to its capital structure and its credit assessment. ArcelorMittal also presents adjusted net income(loss) and adjusted basic earnings per share as it believes these are useful measures for the underlying business performance excluding impairment items and exceptional items. The Company’s guidance as to free cash flow and its working capital release (or the change in working capital included in net cash provided by operating activities) for 2023 is based on the same accounting policies as those applied in the Company’s financial statements prepared in accordance with IFRS. Non-GAAP financial/alternative performance measures should be read in conjunction with, and not as an alternative to, ArcelorMittal's financial information prepared in accordance with IFRS.
2. LTIF figures presented for 1Q 2023 of 0.64x and 4Q 2022 of 0.86x. Potential severe injury frequency rate (“PSIF”) is a proactive measurement of potential injuries. These are precursors of severe accidents: unsafe situations or events, that we detect proactively, before they could lead to a fatality or injury.
3. In 4Q 2022, the Company recognized a $1,026 million impairment charge related to property, plant and equipment with respect to ArcelorMittal Kryvyi Rih (Ukraine) in the ACIS segment, where the ongoing conflict with Russia resulted in low levels of production, sales and income and created significant uncertainty about the timing and ability of operations to return to a normal level of activity. Attacks against Ukrainian power infrastructures caused additional operational issues for ArcelorMittal Kryvyi Rih and the increasing geopolitical tensions resulted in a substantial increase in the discount rate applied by the Company in its value in use calculation.
4. Exceptional items for 4Q 2022 of $0.1 billion relates to a gain following the settlement of a claim in favour of ArcelorMittal for a breach of a supply contract.
5. ROE refers to "Return on Equity" which is calculated as trailing twelve-month net income (excluding impairment charges and exceptional items) attributable to equity holders of the parent divided by the average equity attributable to the equity holders of the parent over the period. Twelve months rolling ROE at 1Q 2023 of 14.2% ($7.6 billion / $53.3 billion).
6. Equity book value per share is calculated as the Equity attributable to the equity holders of the parent divided by diluted number of shares at the end of the period. 1Q 2023 total equity of $54.0 billion divided by 844 million diluted shares outstanding equals $64/sh. 4Q 2022 total equity of $53.2 billion divided by 862 million diluted shares outstanding equals $62/sh.
7. See Appendix 5 for reconciliation of adjusted net income and adjusted basic EPS.
8. September 30, 2020 was the inception date of the recent share buyback programs.
9. XCarb™ is designed to bring together all of ArcelorMittal’s reduced, low and zero-carbon products and steelmaking activities, as well as wider initiatives and green innovation projects, into a single effort focused on achieving demonstrable progress towards carbon neutral steel. Alongside the new XCarb™ brand, we have launched three XCarb™ initiatives: the XCarb™ innovation fund, XCarb™ green steel certificates and XCarb™ recycled and renewably produced for products made via the Electric Arc Furnace route using scrap. The Company is offering green steel using a system of certificates (XCarb® green certificates). These will be issued by an independent auditor to certify tonnes of CO2 savings achieved through the Company’s investment in decarbonization technologies in Europe. Net-zero equivalence is determined by assigning CO2 savings certificates equivalent to CO2 per tonne of steel produced in 2018 as baseline. The certificates will relate to the tonnes of CO2 saved in total, as a direct result of the decarbonization projects being implemented across a number of its European sites.
10. ArcelorMittal Mines Canada, otherwise known as ArcelorMittal Mines and Infrastructure Canada.
11. On December 19, 2018, ArcelorMittal signed a $5.5 billion Revolving Credit Facility ("RCF"), with a five-year maturity plus two one-year extension options. During the fourth quarter of 2019, ArcelorMittal executed the option to extend the facility to December 19, 2024. The extension was completed for $5.4 billion of the available amount, with the remaining $0.1 billion remaining with a maturity of December 19, 2023. In December 2020, ArcelorMittal executed the second option to extend the facility, and the new maturity is now extended to December 19, 2025. On April 30, 2021, ArcelorMittal amended its $5.5 billion RCF to align with its sustainability and climate action strategy. On December 20, 2022, the RCF was amended as part of the transition from Libor to risk free rates. Loans in USD are now based on Term SOFR instead of Libor. As of March 31, 2023, the $5.5 billion revolving credit facility was fully available.
12. Strategic capex excludes the anticipated upward revisions to Liberia and Monlevade capex, due to be communicated in 1H 2023. $1.1 billion of the previously announced strategic capex pipeline (2021-2024) of $4.2 billion has been spent to date.
13. On March 30, 2022, Votorantim S.A. (“Votorantim”) exercised the put option right it has under its shareholders’ agreement with the Company to sell its entire equity interest in ArcelorMittal Brasil to the Company, following the acquisition of Votorantim's long steel business in Brazil in 2018. The value of the put option is currently the subject of arbitration proceeding brought by Votorantim. ArcelorMittal paid Votorantim the undisputed amount of the put option value ($179 million) in January 2023.
14. The Company sold a 7.85% stake in Erdemir starting in late December 2022 and continuing into the first quarter of 2023, generating total proceeds of $0.6 billion.
15. 12M 2023 steel shipment guidance does not include CSP acquisition and assumes no change in Ukraine.
16. For further disclosure on the Company's alignment on EU Taxonomy please review the Integrated annual review published on the group's website: https://annualreview2022.arcelormittal.com/
17. Lease payments and other financing activities (net) of $429 million for 1Q 2023 primarily includes the partial repurchase of the outstanding mandatorily convertible bonds (the “MCBs”) issued on December 28, 2009 by one of its wholly-owned Luxembourg subsidiaries. The outstanding principal amount of the MCBs was reduced from $1.0 billion to $660 million on March 16, 2023. The maturity date of the MCBs remains January 31, 2024.
18. On March 9, 2023, ArcelorMittal announced that following receipt of customary regulatory approvals it has completed the acquisition of Companhia Siderúrgica do Pecém (‘CSP’) in Brazil for an enterprise value of approximately $2.2 billion. CSP has since been renamed ArcelorMittal Pecém and is a world-class operation, producing high-quality slab at a globally competitive cost. Its facility, located in the state of Ceará in northeast Brazil was commissioned in 2016. It operates a three million tonne capacity blast furnace and has access via conveyors to the Port of Pecém, a large-scale, deep-water port located 10 kilometers from the plant. The acquisition offers significant operational and financial synergies and brings with it the potential for further expansions, such as the option to add primary steelmaking capacity (including direct reduced iron) and rolling and finishing capacity. Given its location, ArcelorMittal Pecém also presents an opportunity to create a new low-carbon steelmaking hub, capitalizing on the state of Ceará’s ambition to develop a low-cost green hydrogen hub in Pecém.
19. AMNS Calvert is constructing a new 1.5Mt EAF and caster. Capex required to conclude the project has increased to approximately $1 billion due to enlarged scope and inflation.

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 with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words “believe”, “expect”, “anticipate”, “target” or similar expressions. Although ArcelorMittal’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal’s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the “SEC”) made or to be made by ArcelorMittal, including ArcelorMittal’s latest Annual Report on Form 20-F on file with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.