ArcelorMittal SA Q4 FY2022 earnings call

• 2022 was a year of progress for ArcelorMittal with greater resilience in challenging market environments. • Strategic priorities in 2022 included decarbonization (acquisition of HBI plant in Texas, scrap processors in Europe, CCU bioethanol project in Belgium, progress on DRIEA plant and renewable project in India), growth (received approval for CSP acquisition, progressing on CapEx projects like Electrical Steels in France), and capital returns. • Lakshmi Mittal stated the worst conditions of the cycle have passed and expects 2023 to be a good year. • Aditya Mittal highlighted progress in strategic priorities and that the worst of the destock cycle has passed.

No specific product segment financial performance details provided in the transcript.

• Forecasted apparent demand growth in all core markets. • Expect shipments to grow 5% year-on-year. • Cautiously optimistic with the view that the fourth quarter was the lowest point in the current cycle and Q1 and forward will perform better. • Guided for apparent steel consumption for the year to be up 2% to 3%.

• Operational issues in South Africa due to energy availability and rate challenges. • Uncertainty in Ukraine affecting operations and potential reconstruction. • Regulatory uncertainties in Europe regarding approvals for decarbonization projects and clarity on CBAM and funding support for CapEx.

Q: On capital returns, why against maintaining buyback at full steam given share price?

A: Aditya Mittal clarified no change in buyback policy, 19 million shares to be acquired, and $100 million belongs to 2022 as 50% of free cash flow bought in January, remainder for 2023.

Q: On EBITDA progression going forward into Q1 and Q2, key moving parts?

A: Genuino Christino said destock normalized, shipments expected to improve in Q1, prices moving up, costs to continue coming down though coal price up, but weighted average costing limits Q1 impact.

Q: On volume guidance and Ukraine output levels?

A: Aditya Mittal said volume guidance includes Ukraine, operating levels in Ukraine are 15%-20% for steel and 20%-25% for iron ore mines; Genuino Christino said bringing production back as order book improves, some furnaces up, one small furnace close to end of life may or may not be brought back.

Q: On 50% of free cash flow for strategic acquisitions?

A: Aditya Mittal said focused on deploying strategic capital on opportunities to decarbonize, create advantages, low cost/high margin assets, balanced approach to growing business and returning cash to shareholders.

Q: On working capital and destocking in U.S.?

A: Aditya Mittal said expecting working capital to release as cost normalizes and procurement dynamics improve; Genuino Christino said destocking dynamics similar in U.S., with flats having more significant destock in second half.

Q: On volume guidance real demand assumption and CSP transaction?

A: Aditya Mittal said destock peaked, energy costs eased, but monetary conditions and Ukraine remain headwinds; Genuino Christino said CSP transaction closes end of the month, will update on performance in Q1.

Q: On SIS region performance and South Africa rebound?

A: Genuino Christino said expecting improvement in South Africa due to operational issues in 2022, and expecting better performance in some regions than overall apparent steel consumption guidance.

Q: On Carb initiatives timeline in Europe?

A: Aditya Mittal said approval for European projects expected shortly, likely individual decision making, two out of four projects first, then others later.

Q: On NAFTA segment ramp of Mexican hot strip mill and EAF in Calvert?

A: Genuino Christino said hot strip mill in Mexico has 50% run rate, ramping up with product development, EAF in Calvert expected to be completed end of the year.

Q: On detail plans and CapEx from government sources?

A: Aditya Mittal said outlined $10 billion CapEx for decarbonization with ~50% government grants, will update on projects as they mature.

Q: On regulatory side and decarbonization funding support?

A: Aditya Mittal said expecting planning and support from EU, CBAM important for level playing field, IRA in U.S. creates investment opportunities, clarity on IRA rules needed for investment decisions.