ArcelorMittal reports first quarter 2024 results

ArcelorMittal reports first quarter 2024 results
Luxembourg, May 2, 2024 – ArcelorMittal (referred to as “ArcelorMittal” or the “Company” or the “Group”) (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading integrated steel and mining company, today announced results 1 for the three-month period ended March 31, 2024.
1Q 2024 key highlights:
• Health and safety focus: Protecting employee health and wellbeing remains the overarching priority of
the Company; the Company-wide audit of safety by dss+ is progressing and will support our pathway to
zero serious injuries and fatalities; LTIF 2 rate of 0.61x in 1Q 2024
• Recovering volumes and higher steel spreads supporting improved results: Scope adjusted steel
shipments 17 increased +5.0% in 1Q 2024 vs. 4Q 2023; 1Q 2024 EBITDA 14 of $2.0bn (vs. $1.5bn in 4Q
2023) with EBITDA/t of $145/t in 1Q 2024 (vs. $110/t in 4Q 2023). Net income of $0.9bn in 1Q 2024 vs.
net loss of $3.0bn (adjusted net income of $1.0bn 8 ) in 4Q 2023

Free cash flow impacted by seasonal working capital needs: a seasonal working capital investment
($1.7bn) 22 together with capex ($1.2bn) in support of strategic growth projects 19 led to a free cash outflow during the quarter of $1.4bn
• Financial strength: Net debt of $4.8bn at the end of the quarter (gross debt of $10.2bn and cash and
cash equivalents of $5.4bn)12 compares to a net debt of $2.9bn at December 31, 2023. Over the past 12
months net debt has declined by $0.4bn despite strategic growth capex investments of $1.6bn and
returns to shareholders totaling $1.7bn 25
. This highlights the strong underlying cash generating capacity of the business

Key developments towards strategic objectives:
• Organic growth: Capex in 1Q 2024 includes $0.4bn on strategic growth projects 21
, which are estimated to add approximately $1.8bn to the Company’s EBITDA 13 potential by the end of 2026; strategic projects
to commence operations in 1H 2024 include Vega CMC (Brazil) and the 1GW renewables project in India;
2H 2024 projects include Calvert EAF (US), Serra Azul and Barra Mansa in Brazil, electrical steel in
Europe and mine expansion in Liberia
• Asset portfolio: The Company has agreed to acquire a 28% stake in Vallourec for ~$1.1bn, increasing its
exposure to the downstream value-added tubular market; targeting premium segments in the America’s
market, including a focus on energy transition solutions (CCS and hydrogen); transaction closing is
subject to regulatory approvals and currently expected in 2H 2024

Consistent shareholder returns: The Company has repurchased a further 22.5m shares 10 in 1Q 2024,
bringing the total reduction in diluted shares to 35% since September 30, 2020 7
. This has contributed to an increase in the book value per share to $67/sh 4 at the end of the quarter. The Company will continue to return a minimum 50% of post-dividend FCF to shareholders through its share buyback programs. The $0.50/sh base dividend for 2023 will be paid in 2 equal installments in June 2024 and December 2024

Commenting, Aditya Mittal, ArcelorMittal Chief Executive Officer, said:“Across the Company our people are galvanized to improve safety performance. The 3 rd party safety audit, which started
at the end of December, is now well underway and on target to be completed in September. We expect this to make valuable recommendations that, combined with the considerable efforts already underway, will enable us to deliver the safety results we are striving for.
“On financial performance, the improved pricing environment combined with recovering volumes resulted in sequentially stronger quarterly results, which also now reflect the value contributed by our joint ventures.
“We have an exciting pipeline of growth projects underway, including the 1GW renewables project in India and Vega CMC in Brazil, both of which are expected to commence operations in the first half. Meanwhile the strategic stake in Vallourec will enhance our exposure to the attractive North American market in the value-added tubular market. We continue to progress with our decarbonization projects, conscious of the need to ensure these investments create value as well as reduce emissions.
“Maintaining our position as the lead supplier of low carbon steels is a clear priority and the planned ramp-up at Sestao,along with the new EAF in Gijon which will break ground imminently, will both have an important role to play. Meanwhile our XCarb® recycled and renewably produced steel will be on show to the world during the Paris Olympics, in both the Olympic and Paralympic torches and also the Spectacular which will be erected on the Eiffel Tower.
“Although overall economic sentiment remains subdued, we expect apparent steel demand ex-China to grow between +3% and +4% this year and are well positioned to benefit from this improvement.”