• Earnings Release - EN - PDF
• Analysts slides – EN – PDF
• Analyst model - XLS

Key Highlights:

• Health and safety performance: Protecting the health and well-being of employees remains the Company’s overarching priority; LTIF rate³ of 0.54x in 3Q 2022 as compared to 0.67x in 2Q 2022
• Steel spread compression and seasonally lower shipments: 3Q 2022 was impacted by a negative price-cost effect, energy costs headwinds and a 5.6% sequential decrease in steel shipments to 13.6Mt (-7.1% lower vs. 3Q 2021). Steel shipments remain broadly stable YoY excluding ArcelorMittal Kryvyi Rih which is impacted by the ongoing war in Ukraine
• Operating income: $1.7bn in 3Q 2022 (vs. $4.5bn in 2Q 2022); 9M 2022 operating income of $10.6bn (vs. $12.4bn in 9M 2021)
• EBITDA: $2.7bn in 3Q 2022 vs. $5.2bn in 2Q 2022; 9M 2022 EBITDA of $12.9bn (vs. $14.4bn in 9M 2021)
• Net income: $1.0bn in 3Q 2022 (vs. $3.9bn in 2Q 2022); 9M 2022 net income of $9.0bn (vs. $10.9bn net income in 9M 2021)
• Share repurchases driving enhanced value: Company repurchased a further 31m shares during the quarter (96.2m in 9M 2022); diluted share count now 873m (vs. 1,224m at end of September 30, 2020²⁰); 3Q 2022 basic EPS of $1.11/sh; 9M 2022 basis EPS of $9.76/sh vs $9.52/sh for 9M 2021 benefiting from lower share count; last 12 months ROE¹⁵ of 26%; book value per share¹² of $59/sh
• Further FCF generation: Free cash flow (FCF) of $1.1bn in 3Q 2022 ($2.0bn net cash provided by operating activities less capex of $0.8bn less minority dividends $0.1bn) despite $0.6bn investment in working capital; FCF to be supported by a working capital release in 4Q 2022
• Financial strength: Net debt of $3.9bn at the end of September 2022 as compared to $4.2bn at the end of June 2022 and $4.0bn at the end of December 2021; Gross debt of 9.0bn as at end of September 2022

Strategic update:

• Decarbonization leadership: ArcelorMittal breaks ground on first transformational low-carbon emissions steelmaking project in Dofasco (Canada)¹⁹
• Strategic growth: AMNS India announced its strategy to capture growth, expand its market share and play a leading role in the development of the Indian steel industry. Expansion of the Hazira plant to a ~15Mt capacity by early 2026 is underway including automotive downstream and enhancements to iron ore operations, with capex of ~$7.4bn and targeting to increase the EBITDA capacity by 2.5x⁴
• Consistently returning capital: As at September 30, 2022, the Company had completed approximately 50% (i.e. ~31 million shares or ~$0.7bn) of the previously announced share buy-back program which totaled 60 million shares, with the balance to be completed by the end of May 2023

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

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

“The strong market conditions enjoyed for much of the past two years deteriorated in the third quarter as seasonally lower shipments, a reduction in exceptional price levels, destocking and higher energy costs combined to put profits under pressure. The business responded quickly to the changing environment, cutting higher cost capacity to manage addressable demand and reduce fixed costs, and reducing European gas consumption by 30%.

The group’s decarbonization goals remain a central part of the strategy, with a key development being the ground breaking last month in Ontario, Canada, for a new DRI-EAF plant, which is hydrogen ready. This is an important milestone in our decarbonization roadmap and has been achieved thanks to support from both the regional and federal governments. With COP27 underway we hope for progress on measures that can accelerate the road to net zero, including the scaling up of renewable energy, critical for both the decarbonization of steel and enhanced energy security.

The short-term outlook for the industry remains uncertain and caution is appropriate. But, ArcelorMittal has the strength, resilience and experience to face the future with confidence. Supported by a strong balance sheet, we will continue to focus on executing our strategy, designed to ensure our long-term sector leadership, as well as deliver sustainable investor returns.”

Third quarter 2022 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 nine-months period ended September 30, 2022 on: Thursday November 10, 2022 at 9.30 US Eastern time; 14.30 London time and 15.30 CET.

The dial in numbers are:

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 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, free cash flow (FCF) and ratio of net debt/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. 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.

2. Effective 2Q 2021, ArcelorMittal retrospectively amended its presentation of reportable segments. The results of each mine are accounted for within the steel segment that it primarily supplies. Summary of changes: NAFTA: all Mexico mines; 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.

3. LTIF figures presented for 3Q 2022 of 0.54x, 2Q 2022 of 0.67x, 3Q 2021 of 0.76x, 9M 2022 of 0.63x and 9M 2021 of 0.80x exclude ArcelorMittal Italia (which was deconsolidated as from 2Q 2021 onwards).

4. AMNS India is debottlenecking its operations (steel shop and rolling parts) to achieve capacity of 8.6Mt per annum by the end of 2024. AMNS India medium-term plans are to expand and grow initially to ~15Mt by early 2026 in Hazira (phase 1A) including automotive downstream and enhancements to iron ore operations, with estimated capex of ~$7.4 billion (for $0.8 billion for debottlenecking, $1.0 billion for downstream projects and $5.6 billion for upstream projects. Phase 1A plans include a CRM2 complex and galvanizing and annealing line, 2 blast furnaces, steel shop, HSM, ancillary equipment (including coke, sinter, networks, power, gas, oxygen plant etc.); and raw material handling. Start of BF2 expected in 2025 and BF3 in 2026. BF1 net capacity increase from 2Mtpa to 3Mtpa. There are further options to potentially grow to 20Mt per annum (Phase 1B). AMNS India has agreed to acquire port, power and other logistics and infrastructure assets in India from the Essar Group for a net value of ~$2.4bn. AMNS India has completed part of the power closing transaction on October 19, 2022 ($0.4 billion) whilst the remaining transaction closing is subject to the completion of certain corporate and regulatory approvals. In March 2021, AMNS India signed a Memorandum of Understanding ("MoU") with the Government of Odisha in view of building an integrated steel plant with a 12Mtpa capacity in Kendrapara district of state Odisha. A pre-feasibility study report was submitted to the state government in 3Q 2021, and AMNS India is currently engaging with the government for further studies and clearances. Further options to build a 6Mtpa integrated steel plant are being assessed. The Thakurani mine is operating at full 5.5Mtpa capacity since 1Q 2021, while the second Odisha pellet plant was commissioned and started in September 2021, adding 6Mtpa for a total 20Mtpa of pellet capacity. In addition, in September 2021, AMNS India commenced operations at Ghoraburhani - Sagasahi iron ore mine in Odisha. The mine is set to gradually ramp up production to a rated capacity of 7.2Mtpa and contribute significantly to meeting AMNS India’s long-term raw material requirements.

12. 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. 3Q 2022 total equity of $51.6 billion divided by 873 million diluted shares outstanding equals $59/sh. 2Q 2022 total equity of $54.0 billion divided by 904 million diluted shares outstanding equals $60/sh.

15. ROE refers to "Return on Equity" which is calculated as trailing twelve-month net income attributable to equity holders of the parent divided by the average equity attributable to the equity holders of the parent over the period. 3Q 2022 ROE of 26% ($13.1 billion / $51.1 billion). 2Q 2022 ROE of 34% ($16.7 billion / $49.6 billion).

19. On October 13, 2022, ArcelorMittal together with the governments of Canada and Ontario, broke ground on its CAD$1.8 billion investment decarbonization project at the ArcelorMittal Dofasco plant in Hamilton, Ontario, Canada. The governments of Canada and Ontario having committed CAD$400 million and CAD$500 million respectively to the overall project cost. The project will fundamentally change the way steel is made at ArcelorMittal Dofasco, transitioning the site to direct reduced iron-electric arc furnace steelmaking, which carries a considerably lower carbon footprint and removes coal from the ironmaking process. The new 2.5Mt capacity DRI furnace will initially operate on natural gas but will be constructed ‘hydrogen ready’ so it can transition to green hydrogen when a sufficient and cost-effective supply becomes available. The first onsite construction work will begin in January 2023. Construction on the new assets is currently expected to be completed in 2026, at which point a 12-18 month transition phase will begin with both steelmaking streams (BF-BOF and DRI-EAF) active. The transition is expected to be completed by 2028. In addition to the new DRI facility, the project also involves the construction of an EAF capable of producing 2.4 million tonnes of high-quality steel through ArcelorMittal Dofasco’s existing casting, rolling and finishing facilities. Modification of ArcelorMittal Dofasco’s existing EAF facility and continuous casters will also be undertaken to align productivity, quality and energy capabilities between all assets in the new footprint.

20. September 30, 2020 was the inception date of the recent share buyback programs.

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.