ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading integrated steel and mining company, today announced results1,2 for the three-months and twelve-months period ended December 31, 2021.
2021 Key highlights:
- Health and safety focus: Protecting the health and wellbeing of employees remains the Company’s overarching priority; LTIF rate of 0.79x in FY 2021 vs. 0.61x in FY 20203
- Robust financial performance: FY 2021 operating income of $17.0bn4 (vs. $2.1bn4,5 in FY 2020) and EBITDA of $19.4bn (vs. $4.3bn in FY 2020)
- Enhanced share value: Basic EPS of $13.53/sh. Equity book value per share22 increased to $51/sh (from $32/sh in FY 2020)
- Financial strength: The Company ended 2021 with gross debt of $8.4bn (vs. $12.3bn at the end of 2020), net debt of $4.0bn (vs. $6.4bn at the end of 2020) and returned to investment grade; pension/OPEB declined 20% to $3.7bn in Dec'21 vs. $4.6bn in Dec'20
- Healthy net income: $15.0bn6 in FY 2021 includes share of JV and associates net income of $2.2bn (vs. $0.2bn in FY 2020) largely reflecting performance at AMNS India, AMNS Calvert and other investees
- Strong FCF generation: 9.2% higher steel shipments YoY on scope adjusted basis21 led to a working capital investment of $6.4bn in FY 2021; despite this the Group generated $6.6bn free cash flow (FCF)17 in FY 2021 ($9.9bn net cash provided by operating activities less capex of $3.0bn less minority dividends of $0.3bn)
- Significant returns to shareholders: The Company returned $6.7bn of capital to shareholders in FY 2021, reducing the fully diluted shares outstanding by 19%; 165m shares cancelled (120m shares in 2021 and 45m shares in Jan 2022)
Priorities & Outlook:
- Global leadership on addressing climate change:
- The Company is progressing its plans to reduce the CO2e intensity of its global production by 25% by 2030 (including a 35% reduction in CO2e intensity in Europe) with a net investment of $0.3bn forecast in 2022
- 1st Smart Carbon projects to be commissioned in Ghent (Belgium) by end 2022
- 1st Hydrogen reduction project in Hamburg to start production 2024-2025; Further decarbonization projects announced during the year in Spain, Canada, Belgium and France
- New €1.7bn investment in Fos-sur-Mer & Dunkirk (France), enabling a reduction of ~40% or 7.8Mtpa CO2 emissions in France by 2030
- XCarbTM Innovation Fund investments12 in five technology partnerships during 2021 totaling $180m
- Sales of XCarb® green steel certificates targeted to increase to 0.6Mt run rate by end 2022
- New 3 year $1.5bn Value plan to deliver commercial and business improvements
- Delivering strategic growth in support of higher sustainable returns
- New $0.3bn pellet plant investment at Kryvyi Rih (Ukraine) to ensure sustainability, environmental compliance and improve productivity; new $0.2bn section mill in Barra Mansa (Brazil) to produce higher value added products and enhance the product mix
- $3.1bn strategic capex envelope to be spent between 2021-2024 (of which $0.2bn has been spent to date)23 is estimated to add $1.1bn to future EBITDA24
- 1st coils from the Mexico HSM produced in December 2021; strategic capex to increase in 2022 as growth projects in Brazil (Monlevade, Vega and Barra Mansa) and Ukraine, as well as Iron Ore mining (Liberia, Las Truchas, Serra Azul) advance
- Building a track record of consistently returning capital to shareholders:
- $7.2bn of capital returned to shareholders since September 2020
- The Board proposes to increase the annual base dividend to shareholders to $0.38/sh (to be paid in June 2022, subject to the approval of shareholders at the AGM in May 2022)
- The Company has announced a new $1.0bn capital return for 1H'22. Further authorization to repurchase shares will be sought from shareholders at the 2022 AGM
- Market outlook is favorable
- World ex-China apparent steel consumption ("ASC") in 2022 vs. 2021 is expected to grow 2.5-3%; the Company expects its steel shipments in 2022 to grow by 3% vs. 202121
- The Company expects strong EBITDA and FCF generation in 2022
Financial highlights (on the basis of IFRS1,2):
Note: As previously announced, effective 2Q 2021, ArcelorMittal has amended its presentation of reportable segments to report the operations of AMMC and Liberia within the Mining segment. The results of each other mine are accounted for within the steel segments that it primarily supplies; as from 2Q 2021 onwards, ArcelorMittal Italia is deconsolidated and accounted for as a joint venture.
Commenting, Aditya Mittal, ArcelorMittal Chief Executive Officer, said:
“2021 was a strong year in which we accelerated progress on many fronts. The global economic rebound post initial COVID-19 restrictions being lifted supported buoyant demand in all markets delivering very high levels of profitability. This further strengthened our balance sheet and enabled the delivery of consistent returns for shareholders as well as targeted investment in our business. Recent investments, both organic and acquisitive, have long-term strategic value – with the Mexico hot strip mill set to ramp up this year, the construction of the Calvert EAF underway, and the AM/NS India joint venture performing well and poised to capture further opportunity in this fast-growing market.
The one area where we are not satisfied is safety. We want to do better and we have to do better. Across the organization all our efforts are focused on this most important outcome.
Perhaps most critically we intensified our commitments to decarbonize, recognizing that steel can and must make a significant contribution to achieving net zero. We stated an ambition to reduce our CO2e intensity by 25% by 2030 and continue to invest in multiple technology routes that will help us succeed. We launched our XCarb vision which includes an investment fund into the clean energy technologies that support this transformation. Working in collaboration with stakeholders, we were able to accelerate progress at a number of our plants in Europe and also in Canada. Our aim is to demonstrate what is possible by having the world’s first near zero-emissions steel plant.
We start 2022 ready to build on the progress already achieved for long-term sustainability and success. Industry fundamentals remain positive, supported by re-negotiated automotive contracts. Our balance sheet strength enables us to invest in the most compelling organic growth opportunities and continue our transition towards low emissions steelmaking. We see increasing evidence of stakeholder understanding and support for the transition to zero-carbon steel-making. We look forward to further building on this progress achieved, in 2022.”
Fourth quarter 2021 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 and twelve-month periods ended December 31, 2021 on: Thursday February 10, 2022 at 9.30am US Eastern time; 14.30pm London time and 15.30pm CET.
The dial-in numbers are:
 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 result 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, Equity book value per share, which are non-GAAP financial/alternative performance measures and calculated as shown in the Condensed Consolidated Statement of Operations, as additional measures to enhance the understanding of operating performance. ArcelorMittal believes such indicators are relevant to describe trends relating to cash generating activity and provide management and investors with additional information for comparison of the Company’s operating results to the operating results of other companies. The Company’s EBITDA objectives for certain capital expenditure projects are based on the same accounting policies as those applied in the Company’s financial statements prepared in accordance with IFRS. 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) as it believes it is a useful measure for the underlying business performance excluding impairment items, exceptional items and derecognition of deferred tax assets on disposal of ArcelorMittal USA. ArcelorMittal also presents free cash flow (FCF), which is a non-GAAP financial/alternative performance measure calculated as shown in the Condensed Consolidated Statement of Cash Flows, because it believes it is a useful supplemental measure for evaluating the strength of its cash generating capacity. The Company has revised the definition of free cash flow to include dividends paid to minority shareholders in order to reflect the measure it will use to determine dividends that will be paid under its new dividend policy. The Company also presents the ratio of net debt to EBITDA for the last twelve-month period, which investors may find useful in understanding the Company's ability to service its debt. Such non-GAAP/alternative performance measures may not be comparable to similarly titled measures applied by other companies. Non-GAAP financial/alternative performance measures should be read in conjunction with, and not as an alternative for, ArcelorMittal's financial information prepared in accordance with IFRS.
 New segmentation reporting: Following the Company’s steps to streamline and optimize the business, primary responsibility for captive mining operations has been moved to the Steel segments (which are primary consumers of the mines' output). The Mining segment will retain primary responsibility for the operation of ArcelorMittal Mines Canada ("AMMC") and Liberia and will continue to provide technical support to all mining operations within the Company. As a result, effective 2Q 2021, ArcelorMittal has retrospectively amended its presentation of reportable segments to reflect this organizational change, as required by IFRS. Only the operations of AMMC and Liberia are reported within the Mining segment. The results of each other mine are accounted for within the steel segment that it primarily supplies. Summary of changes: NAFTA: all Mexico mines (for 2020 and 2021 onwards) and Hibbing, Minorca, Princeton mines (each quarter of 2020, as they were included in the ArcelorMittal USA assets sale in December 2020); Brazil: Andrade and Serra Azul mines; Europe: ArcelorMittal Prijedor mine (Bosnia and Herzegovina); ACIS: Kazakhstan and Ukraine mines; and Mining: only AMMC and Liberia iron ore mines.
 LTIF figures presented for FY 2021 of 0.79x excludes ArcelorMittal Italia (deconsolidated as from 2Q 2021 onwards) and ArcelorMittal USA (no longer in scope as sold on December 9, 2020) and compares with 0.61x in FY 2020.
 Impairment gain for 12M 2021 amounted to $218 million following improved cash flow projections in the context of decarbonization plans in Sestao (Spain) (partially reversing the impairment recognized in 2015). Net impairment gain for 12M 2020 amounted to $133 million included the partial reversal of impairment charges (recorded in 2019) following the sale of ArcelorMittal USA ($660 million), offset in part by impairment charges of $331 million related to revised future cashflows of plate assets in Europe, charges of $104 million following the permanent closure of a blast furnace and steel plant in Krakow (Poland) and charges related to the permanent closure of the coke plant in Florange (France) of $92 million.
 Exceptional items for 12M 2020 were net gains of $636 million related to the gain on disposal of ArcelorMittal USA ($1.5 billion) partially offset by site restoration and termination charges following the permanent closure of a blast furnace and steel plant in Krakow (Poland) totaling $146 million and inventory related charges in NAFTA and Europe ($0.7 billion).
 See Appendix 5 for reconciliation of adjusted net income /(loss).
 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 the reference. 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.
 During 3Q 2021, the Company revised the definition of free cash flow to include dividends paid to minority shareholders in order to reflect the measure it will use to determine dividends that will be paid under its new dividend policy. The comparative figures for free cash flow under the prior definition of cash flow from operations less capex were inflows in 4Q 2021 of $3,009 million, $1,767 million for 3Q 2021, $748 million for 4Q 2020, $6,897 million for 12M 2021 and $1,643 million for 12M 2020.
 Total steel shipments for 12M 2021 were 62.9 million metric tonnes ("Mt"), lower as compared to 69.1Mt in 12M 2020 due to the reduced scope following the sale of ArcelorMittal USA on December 9, 2020 and ArcelorMittal Italia, deconsolidated as from April 14, 2021. Adjusted for scope, steel shipments increased by 9.2% driven by the broad based recovery in demand following the impacts of COVID-19 on 2020. Adjusted for scope, all segments experienced year on year shipment growth: Europe +8.9%, Brazil +24.3%, ACIS +4.8% and NAFTA +8.0%.
 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. FY 2021 equity of $49.1bn divided by 967 million shares equals $51/sh. FY 2020 equity of $38.3bn divided by 1,189 million shares equals $32/sh.
 Strategic capex envelope of $3.1 billion represents total to be spent on strategic project in the period from 2021 to 2024. Specifically, $0.2 billion of the $3.1 billion has been spent through the end of 2021.
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.
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 16 countries. In 2022, ArcelorMittal had revenues of $79.8 billion and crude steel production of 59.0 million metric tonnes, while iron ore production reached 45.3 million metric tonnes. Our purpose is to produce ever smarter steels that have a positive benefit for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. 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/http://corporate.arcelormittal.com/