Table of Contents

Management report Page Page

Purchases of equity securities by the issuer and 222
affiliated purchasers
Company overview 3 Share capital 223
History and development of the Company 3
Additional information
Forward-looking statements 9
Memorandum and articles of association 224
Key transactions and events in 2023 10
Material contracts 233
Sustainable development highlights - striving to 11
be a leader in the decarbonization of the steel Exchange controls and other limitations 234
industry affecting security holders
Risk factors and control 15 Taxation 235
Evaluation of disclosure controls and 239
Business overview procedures
Business strategy 37 Management’s report on internal control over 240
financial reporting
Research and development 39
Glossary - definitions, terminology and principal 241
Sustainable development 44 subsidiaries
Products 70 Chief executive officer and chief financial 244
officer’s responsibility statement
Sales and marketing 74
Intellectual property 74
Consolidated financial statements
Government regulations 75 for the year ended December 31,
Organizational structure 88 2023
Consolidated statements of operations 246
Properties and capital expenditures Consolidated statements of other 247
Property, plant and equipment 90 comprehensive income
Consolidated statements of financial position 248
Capital expenditures 105
Consolidated statements of changes in equity 249
Mineral reserves and resources 107
Consolidated statements of cash flows 250
Operating and financial review Notes to the consolidated financial statements 251
Economic conditions 128
Report of the réviseur d’entreprises agréé - 366
Operating results 151 consolidated financial statements
Liquidity and capital resources 165
Annual report of ArcelorMittal
Disclosures about market risk 172
parent company for the year ended
Outlook 174
December 31, 2023
Management and employees Management report 373
Directors and senior management 174 Chief executive officer and chief financial 374
officer’s responsibility statement
Compensation 186
Financial statements of ArcelorMittal parent 375
Employees 202 company for the year ended December 31,
Corporate governance 208 2023
Statements of financial position 376
Shareholders and markets
Statements of operations and statements of 377
Major shareholders 217 other comprehensive income
Related party transactions 220 Statements of changes in equity 378
Markets 221 Statements of cash flows 379
New York Registry Shares 221 Notes to the financial statements 380
Dividend distributions 222 Report of the réviseur d’entreprises agréé – 419
financial statements
 Management report

INTRODUCTION products and commodity grades. To meet these diverse needs,

the Company maintains a high degree of product diversification
Company overview and seeks opportunities to increase the proportion of higher
ArcelorMittal is one of the world’s leading integrated steel and value-added products in its product mix.
mining companies. ArcelorMittal is the largest steel producer in
Europe and among the largest in the Americas, and a growing History and development of the Company
presence in Asia including India through its joint venture AMNS ArcelorMittal results from the merger in 2007 of its predecessor
India. companies Mittal Steel Company N.V. and Arcelor, each of
which had grown through acquisitions over many years. Since
its creation ArcelorMittal has experienced periods of external
Crude steel
growth as well as consolidation and deleveraging (including
58.1
production through divestment).
(million tonnes) 59.0
ArcelorMittal's success is built on its core values of
42.0 sustainability, safety, quality and leadership and the
Iron ore production
(million tonnes)* entrepreneurial boldness that has empowered its emergence as
45.3
the first truly global steel and mining company. Acknowledging
that a combination of structural issues and macroeconomic
Steel shipments 55.6
conditions will continue to challenge returns in its sector, the
(million tonnes) 55.9 Company has adapted its footprint to the new demand realities,
redoubled its efforts to control costs and repositioned its
68.3 operations with a view toward outperforming its competitors.
Sales
(billion USD) ArcelorMittal’s research and development capability is strong
79.8
and includes several major research centers as well as strong
academic partnerships with universities and other scientific
2023 2022 bodies.

Against this backdrop, ArcelorMittal's strategy is to leverage four

*Iron ore production includes production from ArcelorMittal Mining Canada G.P.
distinctive attributes that will enable it to capture leading
and ArcelorMittal Infrastructure G.P. ("AMMC"), ArcelorMittal Liberia and captive positions in the most attractive areas of the steel industry’s
mines. value chain, from mining at one end to distribution and first-
ArcelorMittal has steel-making operations in 15 countries, stage processing at the other: global scale and scope; superior
including 37 integrated and mini-mill steel-making facilities. As of technical capabilities; a diverse portfolio of steel and related
December 31, 2023, ArcelorMittal had approximately 126,756 businesses, one of which is mining; and financial capabilities.
employees. The Company’s strategy is further detailed under “Business
overview—Business strategy”.
ArcelorMittal produces a broad range of high-quality finished
and semi-finished steel products ("semis"). Specifically, ArcelorMittal’s steel-making operations have a high degree of
ArcelorMittal produces flat products, including sheet and plate, geographic diversification. In 2023, approximately 39%
and long products, including bars, rods and structural shapes. It of its crude steel was produced in the Americas, approximately
also produces pipes and tubes for various applications. 50% was produced in Europe and approximately 11% was
ArcelorMittal sells its products primarily in local markets and to a produced in other countries, such as South Africa and Ukraine.
diverse range of customers in approximately 140 countries, In addition, ArcelorMittal’s sales of steel products are spread
including the automotive, appliance, engineering, construction over both developed and developing markets, which have
and machinery industries. ArcelorMittal’s mining operations different consumption characteristics. ArcelorMittal’s mining
produce various types of mining products including iron ore operations, including captive mines are present in North
lump, fines, concentrate, pellets, sinter feed and coking coal. America, South America, Africa, Europe and the CIS region.
Captive mines are integrated into the Company's global steel-
As a global steel producer, the Company is able to meet the making facilities.
needs of different markets. Steel consumption and product
requirements clearly differ between developed markets and
developing markets. Steel consumption in developed economies
is weighted towards flat products and a higher value-added mix,
while developing markets utilize a higher proportion of long
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Competitive strengths The Company sells its products in local markets and through a
As shown by the following graph, ArcelorMittal has a diversified centralized marketing organization to customers in
portfolio of steel and mining products to meet a wide range of approximately 140 countries. ArcelorMittal’s diversified product
customer needs across many steel-consuming sectors, offering, together with its distribution network and research and
including automotive, appliance, engineering, construction, development (“R&D”) programs, enable it to build strong
energy and machinery and via distributors. relationships with customers, which include many of the world’s
major automobile and appliance manufacturers. The Company
is a strategic partner to many major original equipment
Group sales by market (2023)
manufacturers (“OEMs”) and has the capability to build long-
term contractual relationships with them based on early vendor
involvement, contributions to global OEM platforms and
12% common value-creation programs.

25% A world-class mining business. ArcelorMittal has a global

portfolio of 9 (following the disposal of Kazakhstan iron ore and
11%
coal mining operations) operating units with mines in operation
and development and is among the largest iron ore producers in
2% the world. In 2023, ArcelorMittal sourced a large portion of its
raw materials from its own mines and facilities including leases.
The table below reflects ArcelorMittal's self-sufficiency through
14% its mining operations in 2023.
19%
Sourced from
own mines/ Self-
Millions of metric tonnes Consumption facilities2, 3 sufficiency %
17% Iron ore 74.1 42.0 57%
PCI & coal1 29.9 2.0 7%
Coke 17.3 17.0 98%
Distribution Scrap & DRI 26.1 15.5 59%
Construction
Automotive
Primary Transformation
Packaging 1. Includes coal only for the steelmaking process and excludes steam coal for
Other Steel sales* power generation. ArcelorMittal's consumption of PCI and coal was 5.8 million
Other sales** tonnes and 24.1 million tonnes, respectively, for the year ended December 31,
2023.
2. Assumes 100% consumption of ArcelorMittal's iron ore and coal shipments.
3. Includes Kazakhstan iron ore and coal mining operations, which were sold on
* Other steel sales mainly represent metal processing, machinery, electrical
December 7, 2023. Iron ore and coal production is included in the table
equipment and domestic appliances
through the transaction closing date. See "Properties and capital expenditures
**Other sales mainly represent mining, chemicals & water, slag, waste, sale of
—Mineral reserve and resources" and "Introduction—Key transactions and
energy and shipping
events in 2023".

The Company believes that the following factors contribute to The Company has iron ore mining activities in Brazil, Bosnia,
ArcelorMittal’s success in the global steel and mining industry: Canada, Liberia, Mexico, Ukraine, South Africa and through its
joint venture in India and associate in Canada (Baffinland). On
December 7, 2023, the Company divested its mining operations
Market leader in steel. ArcelorMittal had annual achievable
in Kazakhstan in the context of the sale of ArcelorMittal
production capacity of approximately 81.0 million tonnes of
Temirtau, see "—Key transactions and events in 2023".
crude steel for the year ended December 31, 2023. Steel
ArcelorMittal’s main mining products include iron ore lump,
shipments for the year ended December 31, 2023 totaled 55.6
fines, concentrate, pellets and sinter feed. In addition,
million tonnes. ArcelorMittal has significant operations in many
ArcelorMittal produces substantial amounts of direct reduced
countries which are described in "Properties and capital
iron ("DRI") which is a scrap substitute used in its mini-mill
expenditures". In addition, many of ArcelorMittal’s operating
facilities to supplement external metallic purchases and also a
units have access to developing markets that are expected to
vital material for the production of steel through the electric arc
experience, over time, above-average growth in steel
furnace ("EAF") route which will grow substantially in the context
consumption (such as Central and Eastern Europe, South
of decarbonization. As of December 31, 2023, ArcelorMittal’s
America, India, Africa, CIS and Southeast Asia).
iron ore reserves (including reserves at mines where
ArcelorMittal owns less than 100%, based on ArcelorMittal's

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ownership percentage even if ArcelorMittal is entitled to mine all concept integrating a large number of parts into one single
the reserves, and including reserves for which use is restricted) component combining PHS (Usibor®) and laser welding
were estimated at 3,937 million tonnes run of mine. See technology. On top of further lightweighting opportunities, the
“Properties and capital expenditures—Mineral reserves and new solutions offer concepts to simplify operations by optimizing
resources” for a detailed list of the entities with mineral reserves the amount of robots, by reducing the shop floor size, and by
and resources and ownership structure. The Company’s long- cutting the hours of labor per vehicle in the assembly shop by up
life iron ore reserves and resources provide a measure of to 30%. These achievements were mainly possible with the
security of supply and an important natural hedge against raw combination of extra-large laser welded blanks and the new
material volatility and global supply constraints. The seaborne generation of Press Hardening steels Usibor® 2000 and
iron ore mining business is managed as a separate segment Ductibor® 1000.
which enhances ArcelorMittal’s ability to optimize capital
allocation. In the automotive industry, ArcelorMittal mainly supplies the
geographic markets where its production facilities are located,
ArcelorMittal’s facilities have good access to shipping facilities, which are Europe, North and South America, South Africa and
including through ArcelorMittal’s own, or partially owned, 17 China through Valin ArcelorMittal Automotive Steel Co., Ltd
deep-water port facilities and linked railway sidings. (“VAMA”), a joint venture with Hunan Valin. VAMA’s product mix
is oriented toward higher value products and mainly toward the
Market-leading automotive steel business. ArcelorMittal has OEMs to which the Company sells tailored solutions based on
a leading market share (approximately 15% of the worldwide its products. With sales and service offices worldwide and
market) in automotive, and is a leader in the fast-growing production facilities in North and South America, South Africa,
advanced high-strength steels ("AHSS") segment, specifically Europe and China, ArcelorMittal believes that it is uniquely
for flat products. ArcelorMittal is the first steel company in the positioned to supply global automotive customers with the same
world to embed its own engineers within an automotive products worldwide. The Company has multiple joint ventures
customer to provide engineering support. The Company begins and has also developed a global downstream network of
working with OEMs as early as five years before a vehicle partners through its distribution solutions activities. This
reaches the showroom, to provide generic steel solutions, co- provides the Company with a proximity advantage in virtually all
engineering and help with the industrialization of the project. regions where its global customers are present.
These relationships are founded on the Company’s continuing
investment in R&D and its ability to provide well-engineered Examples of MPI are the rear H-Frame and the double door
solutions that help make vehicles lighter, safer and more fuel- ring. Following the launch of H-frame project in China with
efficient. Dongfeng Voyah in 2022, the Company launched several new
projects in 2023 (including designing and structure
In 2023, ArcelorMittal extended the S-in Motion® catalog strengthening projects) for OEMs. Furthermore, after the initial
according to the automotive market trends. The S-in Motion® success of MPI Door-Ring concepts in the U.S. and China with
battery electric vehicles ("BEV") catalog of steel solutions has both legacy and newcomer OEMs, in 2023, the Company
been adapted to include specific products for BEV's including succeeded in a breakthrough of the Door-Ring concept with
new designs focused on battery protection. Advanced and several OEMs in Europe as well. As of December 31, 2023,
especially ultra-high strength steels, innovative press hardened more than 50 different vehicles are designed by ArcelorMittal
steels, and laser welded blanks are especially highlighted as with the Door-Ring concept and approximately 100 projects are
key solutions for optimal performance (passenger safety/ currently in progress.
lightweighting) and battery protection. The growth of various
types of electric vehicles will impact design and manufacturing Sustainability (with focus on CO2 emission reduction in the
leading to demand for different materials and steel grades, and supply chain) has become a key requirement in the automotive
more AHSS for battery protection. For instance, both the battery industry linked to the importance of sustainability in the holistic
box and body structure have to protect the battery in the event electrical vehicle marketing concept. In 2021, ArcelorMittal
of a crash. AHSS products are among the most affordable launched two solutions under the XCarb™ brand: XCarb™
solutions on the market for these specific applications. In a green steel certificates and XCarb™ recycled and renewably
context where the supply of electric vehicles, and especially produced ("RRP"), which was well received in automotive
BEVs, is expected to grow quickly. industry and markets. The first XCarb® RRP steels were
successfully launched in Europe and in North America,
Recently, the automotive industry’s priority has turned towards exhibiting potential for reduction in CO2 emissions. In 2023, the
the simplification of the vehicle manufacturing complexity linked Company entered into an agreement with General Motors for
to the rising importance of electrical vehicles. ArcelorMittal’s supplying XCarb® RRP steels in North America.
response is the ArcelorMittal Multi-Part Integration™ ("MPI")
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For further details on the new products under development, see Company’s downstream assets have cut-to-length,
"Business overview—Research and development”. slitting and other processing facilities, which provide
value additions and help it to maximize operational
Diversified and efficient producer. As a global steel efficiencies.
manufacturer with a leading position in many markets,
ArcelorMittal benefits from scale and production cost efficiencies Dynamic responses to market challenges and
in various markets and a measure of protection against the opportunities. ArcelorMittal’s management team has a strong
cyclicality of the steel industry and raw materials prices. track record and extensive experience in the steel and mining
industries.
• Diversified production process. In 2023, approximately
43.2 million tonnes of crude steel were produced In 2020, the Company successfully reduced fixed costs,
through the basic oxygen furnace process ("BOF") and including through temporary measures, in line with lower
approximately 14.9 million tonnes through the electric production resulting from the impacts of the COVID-19
arc furnace ("EAF") process. This provides pandemic. These savings limited the increase in fixed costs as
ArcelorMittal with greater flexibility in its raw material activity and production levels recovered, thus leading to lower
and energy use, and increased ability to meet varying fixed costs per tonne. In total, $1.0 billion of structural cost
customer requirements in the markets it serves. improvements were identified within this fixed cost reduction
program. In 2021, the Company achieved $0.6 billion of fixed
• Product and geographic diversification. By operating a cost savings relating to its previously announced $1.0 billion
portfolio of assets diversified across product segments structural improvement plan. Savings were achieved through
and geographic areas, ArcelorMittal benefits from a productivity gains and footprint optimization (following closures
number of natural hedges. As a global steel producer at Kraków, coke plant in Florange, and Saldanha); and SG&A
with a broad range of high-quality finished and semi- savings including a 20% reduction in corporate office costs
finished steel products, ArcelorMittal is able to meet the including headcount reduction. The Company did not make
needs of diverse markets. Steel consumption and progress on its plan related to repairs and maintenance
product requirements vary between mature economy following the decision taken to maintain such expenditures at
markets and developing economy markets. Steel higher levels to ensure operational reliability.
consumption in mature economies is largely from flat
products and a higher value-added mix, while In February 2022, the Company announced a new three-year
developing markets utilize a higher proportion of long $1.5 billion value plan ($1.4 billion scope adjusted for the sale of
products and commodity grades. As developing ArcelorMittal Temirtau operations on December 7, 2023)
economies mature and markets evolve, local focused on creating value through well-defined commercial and
customers will require increasingly advanced steel operational initiatives. This plan did not include the impact of
products. To meet these diverse needs, ArcelorMittal strategic capital expenditure projects (which are followed
maintains a high degree of product diversification and separately). The plan includes commercial initiatives, including
seeks opportunities to increase the proportion of its volume/mix improvements and operational improvements
product mix consisting of higher value-added products. (primarily in variable costs). The plan aims at protecting
operating income potential of the business from rising
• Upstream integration. ArcelorMittal believes that its
inflationary pressures, improving its relative competitive position
own raw material production provides it with a
vis-à-vis its peers and supporting sustainably higher profits. The
competitive advantage over time. Additionally,
plan progressed during 2023, and the actions taken in 2022 and
ArcelorMittal benefits from the ability to optimize its
2023 have so far yielded cumulative benefits of $0.8 billion
steel-making facilities’ efficient use of raw materials, its
(approximately 60% of the scope adjusted target). These
global procurement strategy and the implementation of
include $0.3 billion of commercial initiatives, $0.3 billion of
Company-wide knowledge management practices with
variable costs savings and $0.2 billion of fixed and logistic cost
respect to raw materials. Certain of the Company’s
savings. With the ongoing focus to execute and deliver the value
operating units also have access to infrastructure, such
plan initiatives, the Company expects to achieve the remainder
as deep-water port facilities, railway sidings and
of the targets as planned in 2024.
engineering workshops that lower transportation and
logistics costs. Proven expertise in acquisitions
• Downstream integration. ArcelorMittal’s downstream ArcelorMittal’s management team has proven expertise in
integration, primarily through its Europe segment for successfully acquiring and subsequently integrating operations.
distribution solutions, enables it to provide customized The Company takes a disciplined approach to investing and
steel solutions to its customers more effectively. The uses teams with diverse areas of expertise from different

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business units across the Company to evaluate opportunities, ArcelorMittal

conduct due diligence and monitor integration and post- 24-26, Boulevard d’Avranches
acquisition performance. The Company introduces focused L-1160 Luxembourg
capital expenditure programs, implements Company-wide best Grand Duchy of Luxembourg
practices, balances working capital, ensures adequate Telephone: +352 4792-1
management resources and introduces safety and
environmental improvements at acquired facilities. ArcelorMittal ArcelorMittal’s agent for U.S. federal securities law purposes is:
believes that these operating and financial measures have
improved the operating performance and the quality of steel ArcelorMittal Sales & Administration LLC
produced at such facilities. 833 W. Lincoln Highway, Suite 200E,
Schererville, IN 46375
In recent years, the Company has focused on portfolio Telephone: +219 256 7303
optimization including assets disposals and strategic M&A
activity (see also "— Key transactions and events in 2023"). In Internet site
2022, ArcelorMittal acquired a 80% interest in voestalpine's ArcelorMittal maintains an Internet site at
world-class Hot Briquetted Iron ("HBI") plant in Texas and in www.arcelormittal.com. Information contained on or otherwise
2023, the Company completed the acquisition of Companhia accessible through this Internet site is not a part of this annual
Siderúrgica do Pecém ("CSP") renamed ArcelorMittal Pecém in report. All references in this annual report to this Internet site
Brazil, a world-class operation, producing high-quality slab at a and to any other Internet sites (other than to specific documents
globally competitive cost. To further support its decarbonization furnished to or filed with the SEC and specifically incorporated
strategy, ArcelorMittal completed the acquisitions of Riwald by reference herein) are inactive textual references and are for
Recycling and Italpannelli Germany, which complement the information only. The SEC maintains an internet site that
Company's existing geographic presence and strengthen the contains reports, proxy and information statements, and other
product portfolio of ArcelorMittal Downstream Solutions' information regarding issuers that file electronically with the SEC
construction business. at www.sec.gov.

Sustainability leadership. ArcelorMittal produces a range of publications to inform its

ArcelorMittal is committed to leading the industry’s efforts to shareholders. These documents are available in various
decarbonize, and to being part of the solution to the world formats: they can be viewed online or downloaded. Please refer
reaching net-zero by 2050. As a milestone to its 2050 net-zero to www.arcelormittal.com, where they can be located within the
target, the Company has set a group target of reducing its CO2 Investors menu, under Financial Reports, or within the
emissions intensity by 25% by 2030, and in its European Corporate Library. Any request for documents may be sent to:
operations, by 35% by 2030 (scope 1 and 2 emissions). As company.secretary@arcelormittal.com or ArcelorMittal’s
innovation is central to the Company's success given the onus it registered office.
places on research and development ("R&D") with the goal of
ensuring ArcelorMittal is at the forefront of the evolution of Sustainable development
steelmaking processes and products, the Company has ArcelorMittal’s sustainable development information is detailed
developed the industry’s broadest and most flexible suite of low- in the Integrated Annual Review available within the Corporate
emissions steelmaking technologies and has integrated them Library on www.arcelormittal.com. The 2023 information is
into two pathways, Smart Carbon and Innovative-DRI, both of expected to be published during the second quarter of 2024. For
which hold the potential to deliver carbon-neutral steelmaking. further information, please refer to the section "Sustainable
Development".
Other information
ArcelorMittal is a public limited liability company (société ArcelorMittal as parent company of the ArcelorMittal group
anonyme) that was incorporated for an unlimited period under ArcelorMittal, incorporated under the laws of Luxembourg, is the
the laws of the Grand Duchy of Luxembourg on June 8, 2001. parent company of the ArcelorMittal group and is expected to
ArcelorMittal is registered at the R.C.S. Luxembourg under continue this role during the coming years. The Company has
number B 82.454. no branch offices.

The mailing address and telephone number of ArcelorMittal’s Listings

registered office are: ArcelorMittal’s shares (also referred to as "ordinary shares" or
"common shares" throughout this report) are traded on several
exchanges: New York (MT), Amsterdam (MT), Paris (MT),
Luxembourg (MT) and on the Spanish Stock Exchanges of

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Barcelona, Bilbao, Madrid and Valencia (MTS). Its primary stock Amsterdam AEX Basic Materials Index. Recognized for its
exchange regulator is the Luxembourg CSSF ("Commission de commitments to sustainable development, ArcelorMittal is also
Surveillance du Secteur Financier"). ArcelorMittal’s CSSF issuer included in the FTSE4Good Index, Euronext Vigeo Europe 120
number is E-0001. and the Euronext Most Advanced Benelux 20. Furthermore,
ArcelorMittal has been participating in the Carbon Disclosure
On May 19, 2023, ArcelorMittal's outstanding 5.50% Mandatorily Project since 2005 and the United National Global Compact
Convertible Subordinated Notes ("MCNs") matured and were since 2003.
converted into shares, leaving no MCNs outstanding or listed on
the NYSE. Share price performance
During 2023, the price of ArcelorMittal shares increased by 8.2%
Indexes in dollar terms compared to 2022 year on year; the chart below
ArcelorMittal is a member of more than 145 indices including: shows a comparison between the performance of ArcelorMittal’s
STOXX Europe 600, S&P Europe 350, CAC40, MSCI Pan-Euro, shares and the Eurostoxx600 Basic Resource (SXPP).
Bloomberg World Index, IBEX 35, Euronext Paris CAC Basic
Materials Index, DAXglobal Steel EUR Price and Euronext

Capital return policy increased over time). In addition, a minimum of 50% of the
On May 2, 2023, at the annual general meeting of shareholders amount of free cash flow (calculated as net cash provided by
("AGM"), the shareholders approved the dividend of $0.44 per operating activities less purchases of property, plant and
share proposed by the Board of Directors. The dividend equipment and intangibles ("capital expenditures") less
amounted to $369 million and payment included two dividends paid to non-controlling shareholders) remaining after
installments; the first installment of $185 million was paid on paying the base annual dividend is allocated to a share buyback
June 15, 2023 and the second installment of $184 million was program. Should the ratio of net debt to operating income (loss)
paid on December 7, 2023. less depreciation, impairment and special items be greater than
1.5x then the share buyback will not be made.
In accordance with its capital return policy, the Company
expects to pay a base annual dividend (to be progressively
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 Management report

During 2023, as part of its capital return policy and pursuant to sent to the Group at investor.relations@arcelormittal.com or
the authorization given by the annual general meeting of may be contacted at +44 7435 192 206.
shareholders on May 4, 2022, ArcelorMittal completed a share
buyback program on March 31, 2023. On May 5, 2023, the Financial calendar
Company announced another share buyback program pursuant The schedule is available on ArcelorMittal’s website
to the authorization of the AGM held on May 2, 2023, which www.arcelormittal.com under Investors, Financial calendar.
remains outstanding as of the date of this annual report.
Financial results*:
Including the $8.6 billion from share buyback programs that
Results for the 1st quarter 2024 May 2, 2024
were completed from 2020 to 2022 and $1.2 billion from shares
repurchased during 2023, the Company returned in total $12 Results for the 2nd quarter 2024 and 6 months 2024 August 1, 2024
billion to shareholders under the above-mentioned capital return Results for the 3rd quarter 2024 November 7, 2024
policy. Additional buybacks under the outstanding buyback Meeting of shareholders:
program announced in May 2023 will be allocated to the 2024 Annual general meeting of shareholders April 30, 2024
capital return (targeting 50% of post-dividend free cash flow as
per the policy). For further information on buybacks, see * Earnings results are issued before the opening of the stock exchanges on which
"Purchases of equity securities by the issuer and affiliated ArcelorMittal is listed.

purchasers".
Cautionary Statement Regarding Forward-Looking Statements
In February 2024, the Board of Directors recommended a 14%
This annual report contains forward-looking statements based
increase of the base annual dividend to $0.50/share (from
on estimates and assumptions. This annual report contains
$0.44/share paid in 2023) to be paid in two equal installments in
forward-looking statements within the meaning of the Private
June 2024 and December 2024, subject to the approval of
Securities Litigation Reform Act of 1995. Forward-looking
shareholders at the annual general meeting of shareholders in
statements include, among other things, statements concerning
April 2024.
the business, future financial condition, results of operations and
Investor relations prospects of ArcelorMittal, including its subsidiaries. These
ArcelorMittal has a dedicated investor relations team at the statements usually contain the words “believes”, “plans”,
disposal of analysts and investors. By implementing high “expects”, “anticipates”, “intends”, “estimates” or other similar
standards of financial information disclosure and providing clear, expressions. For each of these statements, you should be
regular, transparent and even-handed information to all its aware that forward-looking statements involve known and
shareholders, ArcelorMittal aims to be the first choice for unknown risks and uncertainties. Although it is believed that the
investors in the sector. expectations reflected in these forward-looking statements are
reasonable, there is no assurance that the actual results or
To meet this objective and provide information to fit the needs of developments anticipated will be realized or, even if realized,
all parties, ArcelorMittal implements an active and broad that they will have the expected effects on the business,
investor communications policy: conference calls, road shows financial condition, results of operations or prospects of
with the financial community, regular participation at investor ArcelorMittal.
conferences, plant visits and meetings with individual investors.
These forward-looking statements speak only as of the date on
ArcelorMittal’s senior management plans to meet investors and which the statements were made, and no obligation has been
shareholder associations in such events throughout 2024. undertaken to publicly update or revise any forward-looking
statements made in this annual report or elsewhere as a result
Investors may use the following e-mails or contact numbers to of new information, future events or otherwise, except as
reach the investor relations team: required by securities and other applicable laws and regulations.
A detailed discussion of principal risks and uncertainties which
investor.relations@arcelormittal.com +44 203 214 2893 may cause actual results and events to differ materially from
creditfixedincome@arcelormittal.com +33 1 7192 1026 such forward-looking statements is included in the section titled
“Risk factors”.
Sustainable responsible investors
The Investor Relations team is also a source of information for All information that is not historical in nature and disclosed
the growing sustainable responsible investment community. The under “Operating and financial review” is deemed to be a
team organizes special events on ArcelorMittal’s corporate forward-looking statement.
responsibility strategy and answers all requests for information

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Market information will be paid. “Special” items relate to events or charges that the
This annual report includes industry data and projections about Company does not consider to be part of the normal income
the Company’s markets obtained from industry surveys, market generating potential of the business. Items may qualify as
research, publicly available information and industry “special” although they may have occurred in prior years or are
publications. Statements on ArcelorMittal’s competitive position likely to recur in following years. Non-GAAP financial measures
contained in this annual report are based primarily on public should be read in conjunction with and not as an alternative for,
sources including, but not limited to, published information from ArcelorMittal’s financial information prepared in accordance with
the Company's competitors. Industry publications generally IFRS. Such non-GAAP measures may not be comparable to
state that the information they contain has been obtained from similarly titled measures applied by other companies.
sources believed to be reliable but that the accuracy and
completeness of such information is not guaranteed and that the Key transactions and events in 2023
projections they contain are based on a number of significant During 2023, ArcelorMittal completed several financing and
assumptions. The Company has not independently verified this liability management transactions. Please refer to "Operating
data or determined the reasonableness of such assumptions. In and financial review—Liquidity and capital resources—
addition, in many cases the Company has made statements in Financings" of this report for a summary of these transactions.
this annual report regarding its industry and its position in the
industry based on internal surveys, industry forecasts and • On April 3, 2023, the Company announced that it had
market research, as well as the Company’s experience. While completed the 60,431,380 shares buyback program
these statements are believed to be reliable, they have not been announced on July 29, 2022 under the authorization given
independently verified. by the annual general meeting of shareholders of May 4,
2022.
Financial information
• On April 28, 2023, the Company announced that 25 million
This annual report contains the audited consolidated financial
treasury shares were cancelled to keep the number of
statements of ArcelorMittal and its consolidated subsidiaries,
treasury shares the Company holds within appropriate
including the consolidated statements of financial position as of
levels.
December 31, 2023 and 2022, and the consolidated statements
of operations, other comprehensive income, changes in equity • On May 5, 2023, ArcelorMittal announced the
and cash flows for each of the years ended December 31, 2023, commencement of a new buyback program of up to 85
2022 and 2021. ArcelorMittal’s consolidated financial statements million shares under the authorization given by the annual
were prepared in accordance with International Financial general meeting of shareholders of May 2, 2023, to be
Reporting Standards (“IFRS”) as issued by the International completed by May 2025. The actual amount of shares that
Accounting Standards Board (“IASB”) and as adopted by the will be repurchased pursuant to this program will depend on
European Union. the level of post-dividend free cash flow generated over the
period (the Company’s defined policy is to return a
The financial information and certain other information minimum of 50% of post-dividend annual free cash flow),
presented in a number of tables in this annual report have been the continued authorization by shareholders, and market
rounded to the nearest whole number or the nearest decimal. conditions.
Therefore, the sum of the numbers in a column may not conform
• On May 19, 2023, the Company delivered a total of
exactly to the total figure given for that column. In addition,
57,057,991 treasury shares upon mandatory conversion of
certain percentages presented in the tables in this annual report
the 24,290,025 outstanding 5.50% mandatorily convertible
reflect calculations based upon the underlying information prior
subordinated notes due May 18, 2023.
to rounding and, accordingly, may not conform exactly to the
percentages that would be derived if the relevant calculations • On October 28, 2023, ArcelorMittal confirmed that earlier in
were based on the rounded numbers. This annual report the day, a tragic accident occurred at its Kostenko coal
includes net debt, operating working capital, gearing and free mine which resulted ultimately in 46 fatalities. No words can
cash flow, which are non-GAAP financial measures. adequately convey the devastation the Company feels
ArcelorMittal believes net debt, operating working capital, following this accident. ArcelorMittal and the government of
gearing and free cash flow to be relevant to enhance the Kazakhstan signed a preliminary agreement for a
understanding of its financial position and provides additional transaction that would transfer ownership to the Republic of
information to investors and management with respect to the Kazakhstan, and on December 8, 2023, ArcelorMittal
Company’s operating cash flows, capital structure and credit announced the completion of the sale of ArcelorMittal
assessment. In addition, it refers to “special” items in its capital Temirtau to Qazaqstan Investment Corporation ("QIC"), a
return policy which will be used to determine if the base dividend state-controlled direct investment fund. Under the terms of

10
 Management report

the transaction, on closing ArcelorMittal received subsequent to the request of Invitalia, thereby passing
consideration of $286 million and a further $250 million as control of the company from its current shareholders,
repayment of outstanding intra-group dues. ArcelorMittal ArcelorMittal and Invitalia, to government appointed
will also receive an additional sovereign-fund guaranteed commissioners. This ends ArcelorMittal’s involvement
payment of $450 million, paid in four equal annual in ADI, which started in 2018. Since 2018, ArcelorMittal
installments, as repayment of an intra-group loan. All has been fully committed to the people and assets of
ArcelorMittal Temirtau assets were transferred on an ‘as is’ ADI, then known as Ilva, investing over €2 billion. This
operational basis, meaning QIC assumed control and very significant investment enabled ADI to complete an
accountability for ArcelorMittal Temirtau’s operations, which extensive €800 million environmental program on time
were subsequently renamed. that ensured compliance with the Integrated
Environmental Authorization set out by the Italian
• On December 22, 2023, ArcelorMittal announced that it had
Government, as well as invested €1.2 billion in
engaged dss+, a leading provider of sustainable operations
upgrading equipment at all sites. ADI also benefited
management consulting services, to conduct a Company-
from hundreds of millions of euros of credit through the
wide audit of its safety practices.
provision of raw materials by ArcelorMittal. ArcelorMittal
In addition, the Company completed the following additional had been keen to address the significant discrepancy
acquisitions: in capital investment into ADI by the two shareholders.
In recent discussions, ArcelorMittal put forward
• On January 3, 2023 and March 10, 2023, ArcelorMittal
pragmatic proposals to address this while continuing
completed the acquisition of Riwald Recycling ("Riwald"), a
the public-private partnership with Invitalia that was
state-of-the-art ferrous scrap metal recycling business
established in April 2021. When the shareholders were
based in the Netherlands in the framework of its
not able to agree on acceptable terms, ArcelorMittal
decarbonization strategy and Italpannelli Germany, a
also offered to sell its shareholding in ADI to Invitalia.
German insulation panel manufacturer which complements
The discussions, despite ArcelorMittal’s best efforts,
the existing geographic presence and strengthens the
were not successful. This situation could have been
product portfolio of ArcelorMittal Downstream Solutions'
avoided if ADI had been able (after April 2021) to
construction business, respectively. The total cash
access traditional debt financing and been able to raise
consideration paid for both acquisitions was €144 million
the working capital required to fund its ongoing needs,
($154 million).
rather than relying on equity injections from its
• On March 9, 2023, ArcelorMittal announced that following shareholders as its sole source of capital.
receipt of customary regulatory approvals it had completed Unfortunately, the conditions precedent to allow ADI to
the acquisition of Companhia Siderúrgica do Pecém (‘CSP’) convert its lease of the assets into a formal purchase –
(renamed ArcelorMittal Pecém) in Brazil for an enterprise conditions that ADI has no control over, were originally
value of approximately $2.2 billion. CSP is a world-class set to be completed before May 2022, and
operation, producing high-quality slab at a globally subsequently extended to May 2024, remain
competitive cost. Its facility, located in the state of Ceará in unsatisfied as of date. ADI’s financial situation has
northeast Brazil was commissioned in 2016. It operates a been further impacted by the Italian Government
three-million tonne capacity blast furnace and has access delivering less than one-third of the €2 billion of support
via conveyors to the Port of Pecém, a large-scale, measures it offered to ADI, at the time the public-
deepwater port located 10 kilometers from the plant. The private partnership with Invitalia was established.
acquisition offers significant operational and financial
synergies and brings with it the potential for further
expansions, such as the option to add primary steelmaking Sustainable development highlights - striving to be a leader in
the decarbonization of the steel industry
capacity (including direct reduced iron) and rolling and
• On January 27, 2023, ArcelorMittal announced it invested
finishing capacity. Given its location, CSP also presents an
$36 million in Boston Metal. The transaction was the
opportunity to create a new low-carbon steelmaking hub,
Company’s largest single initial investment to date through
capitalizing on the state of Ceará’s ambition to develop a
its XCarb® Innovation Fund. ArcelorMittal’s investment led
low-cost green hydrogen hub in Pecém.
a $120 million Series C fundraising round undertaken by
Recent Developments Boston Metal. Other participants in the round include
• On February 20, 2024, ArcelorMittal announced the Microsoft’s Climate Innovation Fund and Site Ground
decision of Italian Government to place Acciaierie Capital, who joined Boston Metal’s existing shareholder
d’Italia SpA (‘ADI’) into extraordinary administration register which includes Breakthrough Energy Ventures,

11
 Management report

mining majors Vale and BHP, BMW i Ventures and several Commercial-scale ethanol production from the bioreactors
cleantech venture capital funds. commenced in November 2023, and further ramp-up of
production is ongoing. This advanced ethanol can then be
• On April 18, 2023, ArcelorMittal announced that
used as a building block to produce a variety of products,
ArcelorMittal Brasil, would form the joint venture partnership
including sustainable transport fuels, packaging materials,
Ventos de Santo Antonio Comercializadora de Energia S.A.
apparel, and even cosmetic fragrances, hence helping to
("VdSA") with Casa dos Ventos, one of Brazil’s largest
advance the decarbonization efforts of the global chemical
developers and producers of renewable energy projects, to
sector. The ethanol will be jointly marketed by ArcelorMittal
develop a 554 MW wind power project. ArcelorMittal Brasil
and LanzaTech under the Carbalyst® brand name. The
holds a 55% stake in the joint venture, with Casa dos
Steelanol plant has the annual capacity to produce 80
Ventos holding the remaining 45%. The transaction was
million liters of ethanol, around half of the total current
approved by the Brazilian antitrust authority, CADE, on April
demand in Belgium. It expects to reduce carbon emissions
13 and was completed on May 5, 2023. The $0.8 billion
from the Ghent plant by 125,000 tonnes annually, thereby
project aims to secure and decarbonize a considerable
advancing the EU’s 2030 Climate Target Plan to reduce
proportion of ArcelorMittal Brasil’s future electricity needs
greenhouse gas ("GHG") emissions by 55% by the end of
and is estimated to provide 38% of ArcelorMittal’s Brasil’s
the decade. Project partners include Primetals
total electricity needs in 2030. VdSA is equity accounted,
Technologies and E4tech with support from CINEA, the
and ArcelorMittal’s total equity investment will be $0.15
European Climate, Infrastructure and Environment
billion. The project is located in the central region of Bahia,
Executive Agency. The product samples from the facility
north-east Brazil. The site location has been selected due
mark an important step toward the circular use of carbon
to several competitive advantages, including high-capacity
and the end of single-use carbon, whereby gases are no
forecast load factors (in excess of 50%) and a short
longer regarded as waste but as raw materials. In addition,
distance (23 kilometers) to connect to the national electricity
the recycling of carbon means Steelanol’s process of
grid. There is also the potential to expand the capacity of
Carbalyst® ethanol production does not compete in any
the project by adding a further 100 MW of solar power.
way with food crops, as is the case for traditional methods
Environmental and regulatory permitting is in the process of
of ethanol production. The LanzaTech process implemented
finalization; construction work started in 2023 with
at the Ghent site is fully flexible: not only can it use
operational commissioning expected in 2025. ArcelorMittal
industrial gases from today’s steel production methods but
Brasil will enter into a 20-year power purchase agreement
it can also adapt as industry transitions to future steel
with VdSA for the supply of electricity.
production technologies with increased green hydrogen
• On June 14, 2023, ArcelorMittal and LanzaTech Global Inc. input. This versatility enables the carbon recycling
announced the successful commencement of production application to evolve with available residue, waste streams,
from ArcelorMittal’s commercial flagship carbon capture and and green H2. LanzaTech’s process is already employed by
utilization ("CCU") facility in Ghent, Belgium. The €200 three operational commercial facilities, and LanzaTech
million ‘Steelanol’ facility is a first of its kind for the launched two additional commercial facilities in Asia in
European steel industry, deploying technology developed 2023. Funding for the commercial Steelanol facility was
by leading carbon utilization company LanzaTech. This is obtained from various sources, including the Flemish
the first step toward full operation of a commercial scale government, the Belgian federal government and the
facility that will capture carbon-rich waste gases from European Union’s Horizon 2020 research and innovation
steelmaking and biologically convert them into advanced program under grant agreement No 656437. Part of the
ethanol through LanzaTech’s biobased process. Unlike funding was also secured with a loan from the European
traditional fermentation, the process ferments gases instead Investment Bank. The Steelanol facility reached full
of sugars and uses a biocatalyst instead of yeast. The operational capacity in November 2023.
facility was inaugurated in December 2022, with cold
• On June 14, 2023, ArcelorMittal and John Cockerill
commissioning taking place thereafter. The biocatalyst has
announced plans to develop an industrial scale low
now been introduced into the facility (a process called
temperature, iron electrolysis plant. The Volteron™ (a
inoculation) to begin growth and verify production of new
carbon free, cold direct electrolysis process that extracts
molecules. In May 2023, the first gases from the steel mill’s
iron from iron ore using electricity; on a pilot scale plant, the
blast furnace were safely introduced to LanzaTech’s
process has proved to be highly efficient using standard
biocatalyst. After a successful inoculation, initial samples
iron ore; the iron plates created during the electrolysis
that contained ethanol were produced during the second
process are then processed into steel in an electric arc
week of June 2023, demonstrating that the carbon in the
furnace) plant is targeted in a first phase to produce
gases is being converted into new chemical products.

12
 Management report

between 40,000 and 80,000 tonnes a year of iron plates June 22, 2023, of €280 million in state aid to be provided by
and to start production in 2027. Once the technology has the Belgian authorities for the Company's DRI – EAF
been proven at this scale, the intention is to increase the decarbonization project in Belgium (2.5 million tonne DRI
plant’s annual capacity to between 300,000 and 1,000,000 and 2 new EAFs). The overall support that ArcelorMittal will
tonnes. receive from the Belgian and French authorities is
commensurate with the Company's broader ask to its host
• On June 16, 2023, ArcelorMittal confirmed its plan to invest
governments for its decarbonization projects. Funding
€67 million in a new EAF at its Belval site. This investment
approval decisions for the Company's German project
is part of a series of projects that were the subject of an
remain outstanding.
MoU signed in September 2022 between ArcelorMittal
Luxembourg and the Ministry of the Economy. The MoU • On July 11, 2023, ArcelorMittal announced that its XCarb™
confirmed the willingness of the Luxembourg government to Innovation Fund was launching an accelerator program to
financially support this type of strategic investment, through fund and support the next wave of breakthrough ideas on
the various applicable aid mechanisms. decarbonization emerging from India. With the XCarb™
India Accelerator Program, ArcelorMittal, collaborating with
• On June 19, 2023, ArcelorMittal and SEKISUI CHEMICAL
the Indian Institute of Technology Madras, whose pedigree
announced that their carbon recycling project achieved
in nurturing ideas and mentoring will be applied to support
target ahead of schedule. Both companies have been
start-ups or early stage companies selected, enables them
partnering on a project to capture and reuse CO2 emitted
to scale their technologies and business models from lab to
during steelmaking. As part of this partnership, ArcelorMittal
the market. The program will also be supported by
and SEKISUI CHEMICAL have been supported by the New
ArcelorMittal’s joint venture AMNS India which is actively
Energy and Industrial Technology Development
developing its own decarbonization strategy and initiatives
Organization (NEDO), Japan’s national research and
for lower emissions domestic steel manufacturing.
development agency, and have launched an “International
Successful participants will have access to expertise,
collaboration on CCU for circular carbon in
resources and advice from ArcelorMittal and AMNS India.
Steelmaking” (hereafter, the NEDO project), scheduled for
three years from 2021. One of the research topics is to • On November 15, 2023, ArcelorMittal announced its entry
develop a fundamental technology for Synthesis Gas into the additive manufacturing (AdM) market as a steel
(carbon monoxide and hydrogen) production using powder supplier. The Company is building an industrial-
SEKISUI CHEMICAL’s unique chemical looping technology. scale inert gas atomizer in Aviles, Spain, to produce steel
powders for AdM technologies such as laser powder bed
• On June 21, 2023, the Labour Inspectorate of the French
fusion (LPBF), binder jetting (BJ) and direct energy
government ordered the temporary administrative closure of
deposition (DED). The atomizer, which started production in
part of the Fos-sur-Mer site due to dust and crystalline silica
January 2024, will have a large batch-size production
at the Company's steel works. The decision was
capability, from 200 kg to 3 tonnes, and an initial annual
subsequently suspended after being reviewed by the
capacity of 1,000 tonnes. This will enable ArcelorMittal to
Marseille Administrative Court. ArcelorMittal's action plan to
supply significant volumes of steel powders with consistent
strengthen health protection measures has been
quality, reliability and traceability, meeting the high
accelerated (in consultation with the Labour Inspectorate
standards and specifications of the AdM industry. In line
and Trade Unions). The plan contains more than 80 actions
with ArcelorMittal's sustainability and decarbonization
including the search for a product to replace crystalline
efforts, the Company is committed to advancing the
silica used in continuous casting with the support of our
sustainability of additive manufacturing.
R&D team, an intensive industrial cleaning campaign. All
dust collection, ventilation and capture systems are being • On November 15, 2023, ArcelorMittal and Schneider
reviewed and improved where necessary. In addition, Electric, a leader in the digital transformation of energy
intensive awareness-raising and training initiatives are management and automation, announced a partnership
continuing, in particular as part of the accelerated whereby ArcelorMittal will supply Schneider Electric with
introduction of ventilated breathing masks (by the end of XCarb® recycled and renewably produced steel for its
July 2023, 687 of such masks were distributed to all electrical cabinets and enclosures. Produced at
relevant employees at the steel mill). ArcelorMittal’s site in Sestao, Spain, XCarb® recycled and
renewably produced steel is made using a very high
• On July 20, 2023, the European Commission approved
proportion of recycled steel in an electric arc furnace,
€850 million state aid for ArcelorMittal's Dunkirk site for the
powered with 100% renewable electricity. This results in
construction of a 2.5 million tonne DRI facility and 2 new
CO₂ emissions which are close to 70% lower than the same
EAFs. This followed the European Commission approval on
product made without XCarb® recycled and renewably
13
 Management report

produced steel. ArcelorMittal’s XCarb® recycled and effective Hyperloop technologies for passenger and cargo
renewably produced steel will be used by Schneider mobility at scale.
Electric to manufacture the new PanelSeT SFN floor-
• On January 15, 2024, Bruno Le Maire, the French Minister
standing enclosures built to protect large electrical panels
for Economy and Finance was welcomed to the Company's
for industrial automation, power distribution and electronic
Dunkirk steelworks by Eric Niedziela, Chairman,
applications. As these enclosures are built to withstand
ArcelorMittal France, and members of the French executive
tough operating environments, the XCarb® recycled and
management team. The visit was designed to update Mr Le
renewably produced steel is also coated with Magnelis®, a
Maire on the decarbonization plans and progress at
metallic coating offering high corrosion protection. The
ArcelorMittal's French steelmaking operations.
partnership is the result of several months of technical
ArcelorMittal’s decarbonization plans in France have also
partnership and collaboration between ArcelorMittal Steel
received a boost through a letter of intent signed on the
Services Centre Europe and Schneider Electric to find the
same date with French state-owned energy supplier EDF
right grade of steel and coating for the project.
Energy for the long-term supply of low-carbon electricity to
• On November 28, 2023, ArcelorMittal announced that its French steelmaking sites in Dunkirk and Fos-sur-Mer.
ArcelorMittal Asturias had signed a contract with industrial
• On January 16, 2024, ArcelorMittal announced that it has
engineering company Sarralle, to build a new electric EAF
established a partnership with Vestas, the energy industry’s
in Gijón, as part of the company’s decarbonization plan for
global partner on sustainable energy solutions, to launch a
Spain. Civil works on the site will start early 2024. Once the
low carbon-emissions steel offering that significantly
new 1.1 million tonne EAF is operational, the site will be
reduces the lifetime carbon dioxide emissions from the
able to switch to producing low carbon-emissions steel for
production of wind turbine towers. The low carbon-
the long products sector, specifically rails and wire rod,
emissions steel is produced using 100% steel scrap which
making the site highly competitive, in particular for sectors
is melted in an electric arc furnace powered by 100% wind
with stringent carbon criteria for public procurement
energy at the ArcelorMittal steel mill, Industeel Charleroi, in
contracts. Currently, these products are made via the blast
Belgium. The steel slabs are then transformed into heavy
furnace route. In addition, a de-dusting system and waste
plates used for the manufacture of wind turbine towers, at
heat recovery unit will be installed by Sarralle, as part of the
ArcelorMittal’s heavy plate mill in Gijón, Spain. These heavy
project and in order to maximize energy efficiency in the
plates, made with XCarb® recycled and renewably
new EAF. The project is part of ArcelorMittal Europe’s
produced heavy plate steel, are initially suitable for the
commitment to reduce CO2 emissions by 35% by 2030.
entire onshore wind turbine towers and the top section of
• On December 20, 2023, ArcelorMittal Belgium offshore wind turbine towers.
commissioned its Torero plant, which converts waste wood
into bio-coal for use in the blast furnace at its Ghent
steelmaking site. The first bio-coal made in the Torero plant,
through a process known as torrefaction, was successfully
used in a blast furnace in Ghent on December 18, 2023.
The project will reduce annual carbon emissions from the
plant by 112,500 tonnes, by reducing the use of fossil coal
in the blast furnace. The Torero industrial-scale
demonstration plant will convert 88,000 tonnes of waste
wood into 37,500 tonnes of bio-coal annually. The use of
bio-coal in the blast furnace process will result in the
production of bio-gas, which will be captured and
transformed into ethanol by ArcelorMittal Ghent’s Steelanol
facility.

Recent Developments
• On January 3, 2024, ArcelorMittal announced that it had
established a partnership with the Indian Institute of
Technology Madras ("IIT Madras") and is working closely
with IIT Madras’ Hyperloop Technology teams - Avishkar
Hyperloop, student team and TuTr Hyperloop, a start-up
incubated at IIT Madras, which are developing cost-
14
Risk Factors and Control

Risk factors
ArcelorMittal’s business, financial condition, results of operations, reputation or prospects could be materially and adversely affected by
one or more of the risks and uncertainties described below.

I. Risks related to the global economy and the mining and steel
industry As a result of these factors, steel and iron ore prices fluctuate
substantially and have come under pressure at various points in
Prolonged low steel and (to a lesser extent) iron ore prices recent periods. See “Operating and financial review—Key
and/or low steel demand would have an adverse effect on factors affecting results of operations”.
ArcelorMittal’s results of operations.
As an integrated producer of steel and iron ore, ArcelorMittal’s More specifically in terms of near to mid-term risks for the
results of operations are sensitive to the market prices of, and Company in this respect, the fall in international spot steel prices
demand for, steel and iron ore in its markets and globally. The in 2022 and 2023 stemmed from a broader trend in slowing
impact of market steel prices on its results is direct while the steel demand. Macroeconomic conditions are fragile and
impact of market iron ore prices is both direct and indirect, as uncertain, including due to geopolitical developments,
ArcelorMittal sells iron ore on the market to third parties (in particularly Russia’s invasion of Ukraine and the Israel-Hamas
which case it benefits from higher iron ore market prices), and conflict, and actions taken by central banks to combat inflation
indirect, as iron ore is a principal raw material used in steel (in particular raising interest rates sharply in 2022 and 2023). As
production and fluctuations in its market price are typically and interest rates remain high, the risk of a global recession
eventually (with the timing dependent on steel market remains. Significant energy supply and cost issues in Europe
conditions) passed through to steel prices (with any lags in increase the risk of manufacturers being unable to operate at full
passing on higher prices “squeezing” steel margins, as capacity, potentially lowering demand for steel and straining
discussed below). Steel and iron ore prices are affected by steel prices. Many steel customers began to destock and adopt
supply and demand trends and inventory cycles. In terms of a “wait and see” approach in the summer of 2022, and steel
demand, steel and iron ore prices are sensitive to trends in demand, particularly in Europe, continued to decline during the
cyclical industries, such as the automotive, construction, second half of 2023, causing steel users to destock further,
appliance, machinery, equipment and transportation industries, resulting in a second consecutive year of destocking. The
which are significant markets for ArcelorMittal’s products (with fragility of the Chinese economy, which suffered from the
automotive being particularly significant). More generally, steel negative effects of repeated strict lockdowns that ran until
and iron ore prices are sensitive to macroeconomic fluctuations December 2022 and more recently from a weak real estate
in the global economy which are impacted by many factors sector, slowing economic growth, accelerating deflation and
ranging from trade and geopolitical tensions to global and general uncertainty also add to risks of a global slowdown and
regional monetary policy to specific disruptive events such as lower global steel demand and prices. Prior recessions have
pandemics, wars and natural disasters. In the past, substantial generally resulted in lower steel demand and steel prices, with
price decreases during periods of economic weakness have not consequential material adverse impacts on steel companies’
always been offset by commensurate price increases during results. Any significant decline in steel prices also increases the
periods of economic strength. In addition, as further discussed risk of inventory-related charges, such as those that
below, excess supply relative to demand for steel in local ArcelorMittal recorded in 2019 and 2022. In addition, the impact
markets generally results in increased exports and drives down of lower steel prices on ArcelorMittal’s results is subject to a lag
regional or global prices. In terms of inventory, steel stocking effect (due to its contracts), and therefore the impact is felt
and destocking cycles affect apparent demand for steel and beyond the duration of any decline in spot steel prices.
hence steel prices and steel producers’ profitability. For
example, steel distributors may accumulate substantial steel The trajectory of steel demand and prices going forward, in
inventories in periods of low prices and, in periods of rising real particular in 2024, is difficult to predict due to such variables as
demand for steel from end-users, steel distributors may sell the duration of the ongoing conflict in Ukraine, the Israel-Hamas
steel from inventory (destock), thereby delaying the effective conflict and the risk of additional conflicts in the region, related
implementation of steel price increases. Conversely, steel price risks on global energy supply and hence on industrial production
decreases can sometimes develop their own momentum, as and consequentially demand for steel, import volumes (in
customers adopt a “wait and see” attitude and destock in the particular from China given trends in domestic supply and
expectation of further price decreases. demand) and tariff levels and inventories. Any economic
downturn globally or in certain regions may result in lower steel
demand and lower steel and iron ore prices. A scenario of

15
 Management report

prolonged low steel and (to a lesser extent or if simultaneous) raw material prices can result from many factors including:
iron ore prices, whether or not combined with low steel demand, trends in demand for iron ore in the steel industry itself, and
would have a material adverse effect on ArcelorMittal’s results of particularly from Chinese steel producers (as the largest group
operations and financial condition. of producers); industry structural factors (including the
oligopolistic nature of the seaborne iron ore industry and the
Volatility in the supply and prices of raw materials, energy fragmented nature of the steel industry); the expectation or
and transportation, and volatility in steel prices or imposition of corrective trade measures such as tariffs; massive
mismatches between steel prices and raw material prices stocking and destocking activities (sudden drops in prices can
could adversely affect ArcelorMittal’s results of operations. lead end-users to delay orders pushing prices down further);
As a producer and seller of steel, the Company is directly speculation; new laws or regulations; changes in the supply of
exposed to fluctuations in the market price for steel, iron ore, iron ore, in particular due to new mines coming into operation;
coking coal and other raw materials, energy and transportation. business continuity of suppliers; changes in pricing models or
In particular, steel production consumes substantial amounts of contract arrangements; expansion projects of suppliers;
raw materials including iron ore, coking coal and coke, and the worldwide production, including interruptions thereof by
production of direct reduced iron, the production of steel in EAF suppliers; capacity-utilization rates; accidents or disruptions at
and the re-heating of steel involve the use of significant amounts suppliers’ premises or along the supply chain as occurred in
of energy, making steel companies dependent on the price of 2019, 2021, 2022 and 2023; wars, natural disasters, public
and their reliable access to supplies of raw materials and health epidemics (such as the COVID-19 pandemic which
energy. In the fourth quarter of 2021 and throughout 2022, the substantially depressed demand for steel for an extended period
Company became subject to increasing inflationary cost in 2020), political disruption and other similar events;
pressures, in particular with the prices of electricity, natural gas fluctuations in exchange rates; the bargaining power of raw
and CO2 all increasing significantly, putting pressure on steel material suppliers and the availability and cost of transportation.
price spreads in an initially high steel price environment and Industry and overall decarbonization efforts may also result in
then deflationary steel price environment, resulting in a increased and/or volatile prices, in particular, higher energy and
compression of steel spreads, which started in the second CO2 prices as well as scrap prices (due in particular to an
quarter of 2022. As a result of this pressure and the decrease in industry shift to EAF production). For further information on the
demand, the Company reduced or ceased production at certain movement of raw material prices in recent years, see “Operating
plants, in particular in Europe, including measures to cut higher and financial review—Key factors affecting results of operations
cost capacity and reduce European gas consumption. While —Raw materials”.
there has been some easing of energy costs since the fourth
quarter of 2022 and the Company began gradually resuming Furthermore, while steel and raw material (in particular iron ore
capacity in certain locations in early 2023, the Company and coking coal) price trends have historically been correlated, a
continued to face compression of spreads throughout 2023 as lack of correlation or an abnormal lag in the corollary
steel prices declined in the second half, and the pace of the relationship between raw material and steel prices also occurs
decline in steel prices has been greater than the reduction in the regularly, resulting in a “price-cost effect” in the steel industry.
raw material basket. In the fourth quarter of 2023, the Company ArcelorMittal has experienced negative price-cost effects (or
again cut production at certain sites in Europe. “squeezes”) at various points in recent years, including in 2021,
2022 and 2023, and will likely continue to do so as this is a
The Company incurs operating costs when production capacity structural feature. In some of ArcelorMittal’s segments, in
is idled and/or increased costs to resume production at idled particular Europe and NAFTA, there is a lag of several months
facilities. Idling can also impact the long-term health of assets, between raw material purchases and sales of steel products
despite steps taken to protect them. incorporating those materials, rendering them particularly
susceptible to price-cost effects. For example, coking coal
Although ArcelorMittal has substantial sources of iron ore from
sourced from Australia takes several weeks to reach Europe
its own mines (the Company’s self-sufficiency rate was 57% for
(e.g. approximately four weeks sailing time, plus loading/
iron ore in 2023), it nevertheless remains exposed to volatility in
unloading time at ports), creating a structural lag. Sudden spikes
the supply and price of iron ore and coking coal given that it
in raw materials, such as coking coal, have occurred in the past
obtains a significant portion of such raw materials under supply
and may occur in the future. Because ArcelorMittal sources a
contracts from third parties. For additional details on
substantial portion of its raw materials through long-term
ArcelorMittal’s raw materials supply and self-sufficiency, see
contracts with quarterly (or more frequent) formula-based or
“Business overview—Products—Mining products” and
negotiated price adjustments and as a steel producer sells a
“Business overview—Products—Other raw materials and
substantial part of its steel products at spot prices, it faces the
energy.” The prices of steel, iron ore, coking coal and scrap
risk of adverse differentials between its own production costs,
have been highly volatile in recent years. Volatility in steel and
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 Management report

which are affected by global raw materials and scrap prices, on the Israel-Hamas conflict and the risk of contagion in the region
the one hand, and trends for steel prices in regional markets, on also contributed to the risk of global and regional energy supply
the other hand. The price-cost dynamic in the most recent and price issues. Significant cuts in energy supplies or a
periods can be summarized as follows: The significant increase collapse in demand due to supply issues or otherwise may
in steel prices in the fourth quarter of 2020 resulted in a multi- result in the Company having to cut production regionally or
year high in steel spreads (which was not fully reflected in the globally. Indirectly, if steel-using customers are unable to source
Company’s performance due to lag effect). This trend continued the energy supplies needed for their operations, they will be
through the third quarter of 2021 before prices came off their unable to operate and their demand for steel will decline.
highest levels in the fourth quarter of 2021, while high raw
material and energy costs put increasing pressure on margins. Transportation costs include shipping, road and rail. These
The trend then shifted in the second half of 2022, as energy costs, and in particular shipping, also rose substantially in 2021
costs continued to increase while steel prices declined. Negative due to the post-lockdown demand recovery and logistic
price-cost effects continued in 2023, as the pace of the decline constraints, but then declined again in 2022 as economies
in steel prices was greater than the reduction in the raw material normalized. While there have been increased costs associated
basket. More generally and in sum, the relationship between with the geopolitics surrounding the Red Sea, this has been
input (and in particular raw material) costs and steel selling much smaller than the increases in 2021 and has predominately
prices and the time lag between them structurally subjects the impacted container costs on Europe-Asia routes, whereas other
profitability of steel manufacturers in general and ArcelorMittal in shipping costs have increased by much less. Any increase in or
particular to the risk of a negative price-cost effect. a sustained high level of transportation costs not offset by
continued high steel selling prices would directly and
ArcelorMittal’s other principal input costs that affect its level of mechanically weigh on ArcelorMittal’s profitability (although it
profitability are energy and transportation. Energy expenses are would make imports into its markets less competitive). In light of
sensitive to changes in electricity, energy transportation and fuel reduced global steel production, the outlook on freight rates in
prices, including diesel fuel, natural gas and industrial gas. the near future is to a large degree dependent on developments
Prices for electricity, natural gas and fuel oils can fluctuate in China. If China cannot significantly raise infrastructure
widely with availability and demand levels from other users, spending in the near future, economic recovery is likely to be
including fluctuations caused by the impact of the COVID-19 stunted, further impacting iron ore demand, and by extension
pandemic. During periods of peak usage, although some freight rates on key iron ore routes.
operations have contractual arrangements in place whereby
they receive certain offsetting payments in exchange for Excess capacity and oversupply in the steel industry and in
electricity load reduction, supplies of energy in general may be the iron ore mining industry have in the past and may
curtailed and the Company may not be able to purchase them at continue in the future to weigh on the profitability of steel
historical rates. A disruption in the transmission of energy, producers, including ArcelorMittal.
inadequate energy transmission infrastructure, or the The steel industry is affected by global and regional production
termination of any of the Group’s energy supply contracts could capacity and fluctuations in steel imports and exports, which are
interrupt energy supply and adversely affect operations. While themselves affected by the existence and amounts of tariffs and
the Group has some long-term contracts with electrical, natural customer and distributor stocking and destocking cycles. The
gas and industrial gas suppliers, it is exposed to fluctuations in steel industry has historically suffered from structural
energy, natural gas and industrial gas costs that can affect its overcapacity globally, and the current global steelmaking
production costs. Energy prices rose substantially in various capacity exceeds the current global consumption of steel,
markets in 2021 and 2022, with attendant impacts on margins especially for long products. This overcapacity is affected by
and in extreme cases production at certain sites in Europe (e.g., global macroeconomic trends and amplified during periods of
the Company curtailed production at some of its Spanish plants global or regional economic weakness, leading to weaker global
during “peak hours” due to high electricity prices). Europe or regional demand. In particular, China is both the largest
experienced an energy crisis in 2022, due to the consequences global steel consumer and the largest global steel producer by a
of Russia’s invasion of Ukraine as well as other supply issues. large margin, and the balance between its domestic production
While the Company generally hedges its energy costs on a six- and consumption has been an important factor influencing
month rolling basis, its results were impacted by the high energy global steel prices. At various points in recent years, reduced
prices. The energy crisis involved significant supply risk, with Chinese steel demand has not been fully offset by reduced
gas supplies through the Nord Stream pipeline having been Chinese steel production, which has led to a flood of Chinese
substantially reduced and gas supplies being suspended steel exports into various regional markets, including the
periodically for other reasons, including “maintenance” and Company’s principal markets again weighing on demand, and
invoicing disputes and explosions in September 2022. In 2023, indeed depressing market prices. While most recently

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 Management report

constraints imposed on Chinese steel production have tempered protectionist policies more generally due to the global nature of
the risk of excess production, such risk remains, along with the its operations. Various countries have instituted, and may
risk of increased exports, in particular if there is a global institute import tariffs and barriers that could, depending on the
recession or a Chinese slowdown. See “Unfair trade practices, nature of the measures adopted, adversely affect ArcelorMittal’s
import tariffs and/or barriers to free trade could negatively affect business by limiting the Company’s access to or
steel prices and ArcelorMittal’s results of operations in various competitiveness in steel markets. While such protectionist
markets.” Exports by steel producers in other developing measures can help the producers in the adopting country, they
countries and regions (such as the CIS, Turkey and India) into may be ineffective, raise the risk of exports being directed to
the Company’s principal markets are also a market feature. The markets where no such measures are in place or are less
extent of them depends on the demand/production balance in effective and/or result in retaliatory measures. Moreover, absent
the producer’s home market as well as regional market pricing government intervention, European steel producers who will
differentials (including any applicable import tariffs). The bear increasingly high costs to reduce carbon emissions (or pay
European steel market is particularly sensitive to the import for allowances) will be at a competitive disadvantage versus
threat due to remaining structural overcapacity. For example, importers from developing countries with lower environmental
lower demand and high imports led to low steel prices in Europe standards. While certain changes in Chinese policy in recent
in the first half of 2019, to which steel producers (including the periods led to decreased exports from China, the risk of
Company) responded with production cuts. increased exports from China remains, due to changes in
Chinese policy, economic conditions or otherwise. For example,
Market prices for iron ore also underpin those of steel (as its in 2023, with weak domestic demand and a large price gap to
principal input component) to some extent, and iron ore prices ex-China, Chinese steel producers were incentivized to maintain
depend both on supply and demand conditions. Excess iron ore production and push exports to overseas markets resulting in a
supply relative to demand has led to depressed prices at various strong increase in Chinese finished steel exports to
points in recent years and could recur, with potentially a approximately 91 million tonnes from 67.4 million tonnes in
corollary effect on steel prices. No assurance can be given that 2022. A significant increase of Chinese exports, if continued, will
iron ore prices will not decline further, particularly if there is a likely lead to rising inventory levels in steel markets outside of
recession, Chinese steel demand declines, worldwide capacity China and downward pressure on prices and spreads,
increases due to new mines coming online or steel demand negatively affecting the Company’s profitability.
declines again due, for example, to impacts from the negative
effects from the continuing Russia/Ukraine conflict, the Israel- More generally, the current state of trade relations globally with
Hamas conflict or other regional conflicts, in particular on energy trade disputes leading to the imposition of tariffs and then
supply and prices. A renewed phase of steel and iron ore retaliatory measures, as seen in recent years in various markets
oversupply would likely have a material adverse effect on (U.S./China, U.S./Europe, etc.) has and could continue to
ArcelorMittal’s results of operations and financial condition. directly (in the case of tariffs) or indirectly (in the case of
economic growth generally) have a significant adverse effect on
Unfair trade practices, import tariffs and/or barriers to free demand for and the price of steel and hence on ArcelorMittal’s
trade could negatively affect steel prices and results of operations and financial condition.
ArcelorMittal’s results of operations in various markets.
ArcelorMittal is exposed to the effects of “dumping” and other In addition, the ETS and CBAM regulations in Europe will impact
unfair trade and pricing practices by competitors. Moreover, the carbon emissions allowances from the second trading period
government subsidies to the steel industry remain widespread in of Phase IV (i.e., 2026-2030) onwards, resulting in additional
certain countries, particularly those with centrally controlled costs, with the risk of a loss of competitiveness of EU exports
economies such as China. In periods of lower global demand for due to higher EU prices as a result. See “Laws and regulations
steel, there is an increased risk of additional volumes of unfairly- restricting emissions of greenhouse gases could force
traded steel exports into various markets, including Europe, ArcelorMittal to incur increased capital and operating costs and
North America and other markets such as Brazil and South could have a material adverse effect on ArcelorMittal’s results of
Africa, in which ArcelorMittal produces and sells its products. operations, financial condition and reputation.”
Such imports have had and could in the future have the effect of
reducing prices and demand for ArcelorMittal’s products. Russia’s invasion of Ukraine, international reaction to it (in
particular in the form of sanctions) and any regional or
Exports of low-cost steel products from developing countries, global escalation of the conflict, could adversely affect the
along with a lack of effective remedial trade policies, can Company’s business, results of operations and financial
depress steel prices in various markets globally, including in condition.
ArcelorMittal’s key markets. Conversely, ArcelorMittal is The Company has significant operations in Ukraine, consisting
exposed to the effects of import tariffs, other trade barriers and of a steel plant and (captive) mines. See "Properties and capital
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 Management report

expenditures—Property, plant and equipment—ACIS". After developments in alternative materials, designers, engineers and
operating at various levels of capacity in 2022/2023 affected by industrial manufacturers, especially those in the automotive
various difficulties, ArcelorMittal Kryvyi Rih ("AMKR") is currently industry have increased their use of lighter weight and
operating its mining and steel facilities at 45% and 30%, alternative materials, such as aluminum and plastics in their
respectively. The Company cannot predict the duration of the products.
idling or of lower production as it will depend on the remaining
course of the conflict and the establishment of safe and stable A loss of market share to substitute materials, increased
operating and logistical conditions thereafter, as well as potential government regulatory initiatives favoring the use of alternative
repairs of any damages sustained. The Russian army has also materials, as well as the development of additional new
blocked ports in Odessa, complicating and increasing the cost of substitutes for steel products could significantly reduce market
exports (including steel and iron ore) from Ukraine. The ongoing prices and demand for steel products and thereby reduce
conflict, its impact on demand, logistics (with respect to both ArcelorMittal’s cash flows and profitability.
supply and delivery) and costs and any resulting further reduced
Additive manufacturing or new technologies such as carbon free
production, sales and income at its Ukrainian operations caused
steelmaking could also result in a loss of market share if
the Company to record a $1.0 billion impairment charge in 2022
competitors develop and deploy this kind of technology before,
with respect to such operations; the related property, plant and
or more effectively than ArcelorMittal. In addition, to the extent
equipment had a carrying value of $0.7 billion on the Company’s
regulatory requirements and/or customer demand for low carbon
balance sheet at December 31, 2023. For further information on
or carbon neutral steel increase, competition with respect to low
these risks, see notes 1.3 and 5.3 to the consolidated financial
CO2 steel technologies may become more significant, leading to
statements.
substantial input cost increases.
The imposition of extensive sanctions on Russia by the EU, the
II. Risks related to ArcelorMittal's operations
U.S., the UK and other countries could affect the Company’s
sourcing of raw materials from sanctioned countries. More The Group’s carbon emissions intensity reduction targets
generally, any business conducted in Russia and with Russian are based on current assumptions with respect to the
counterparties carries the risk of non-compliance with economic costs, government and societal support for the reduction of
sanctions (and the attendant financial and reputational adverse carbon emissions in particular regions and the
consequences), despite best efforts to comply. advancement of technology and infrastructure related to
the reduction of carbon emissions over time. Future
More generally the conflict could have a further material adverse
developments may affect such assumptions, and this may
effect on the overall macroeconomic environment. Although
render the achievement of ArcelorMittal’s targets more
energy prices have fallen back through 2023, the impact on
difficult, or even impossible, to achieve for cost or other
energy supplies in Europe has been significant and increased
reasons.
the risk of a recession in the region. Both the conflict itself and
To achieve its 2030 global carbon emissions intensity reduction
the sanctions imposed (and further sanctions that may be
target of 25% covering the Scope 1 and 2 emissions attributable
imposed), as well as potential Russian reactions, have had and
to the Company’s operations measured in accordance with the
could have further destabilizing effects on financial markets. The
Greenhouse Gas (“GHG”) Protocol, ArcelorMittal has estimated
conflict, which has substantially exacerbated tensions between
the gross capital cost required to be approximately $10 billion,
NATO and Russia, could escalate militarily both regionally and
with the expectation that 35% of these capital expenditures will
globally; any substantial escalation would have a material
be deployed up to 2025 and the remainder in the second part of
adverse effect on macroeconomic conditions. In addition,
the decade. In addition, the Company’s decarbonization strategy
sanctions may remain in place beyond the duration of any
includes the objective of carbon neutrality by 2050; since 2021,
military conflict and have a long-lasting impact on the region and
this has also been a legal obligation for its operations in the EU
could adversely impact the Company’s results of operations and
and Canada following the adoption of the European Climate
financial condition.
Law and the Canadian Net-Zero Emissions Accountability Act,
Competition from other materials and alternative steel- respectively. These targets and estimates are based on
based technologies could reduce market prices and numerous assumptions, including the costs of green hydrogen
demand for steel products and thereby reduce (meaning hydrogen produced exclusively from renewable
ArcelorMittal’s cash flows and profitability. sources) and its evolution over time, the construction of DRI and
In many applications, steel competes with other materials that EAF facilities, the development of carbon capture, utilization and
may be used as substitutes, such as aluminum, concrete, storage (“CCUS”) infrastructure and the timing of the
composites, glass, plastic and wood. In particular, as a result of introduction of GHG reduction requirements and supportive
increasingly stringent regulatory requirements, as well as policies in applicable jurisdictions. The Company expects that
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 Management report

low emissions technologies will become more competitive over ArcelorMittal. In recent years ArcelorMittal has experienced
time as more stringent GHG reduction requirements and/or significant strikes affecting operations at various plants,
carbon prices are introduced and increased in each jurisdiction, particularly in Mexico, South Africa, France, Spain and Canada,
alongside the introduction of effective policies to secure a level relating to various causes, often in connection with labor
playing field, and the decarbonization technologies themselves contract renewal negotiations or claims for salary increases
become more mature and efficient. However, in the transition because of rising inflation.
period (and through at least 2030), its investments in
decarbonization will require support from host countries, first Disruptions to ArcelorMittal’s manufacturing processes and
and foremost from the European Union and its member states, mining operations caused for example by equipment
through supportive policies designed to avoid “carbon leakage” failures, natural disasters, accidents, explosions, epidemics
and provide compensation for the significantly higher costs, or pandemics, geopolitical conflicts or extreme weather
while at the same time maintaining a fair and competitive events could adversely affect its operations, customer
landscape. In particular, ArcelorMittal’s expectation is that public service levels and financial results and liabilities.
funding covers 50% of the total cost of decarbonization (capital Steel manufacturing processes are dependent on critical steel-
expenditures and higher operating expenses) so that the making equipment, such as furnaces, continuous casters, rolling
Company and industry are not rendered uncompetitive during mills and electrical equipment (such as transformers), and such
this transition period. The Company believes this expectation is equipment may incur downtime as a result of unanticipated
reasonable (and funding from certain governments has been failures or other events, such as fires, explosions, furnace
approved), but such funding is subject to changes in breakdowns or as a result of natural disasters, accidents,
government and policy, among other factors, and may not be epidemics or pandemics or severe weather conditions.
achieved. See “Business overview—Sustainable development— ArcelorMittal’s manufacturing plants and mines have
Climate change and decarbonization". A lack of governmental experienced, and may in the future experience, plant shutdowns
and societal support could make the Company’s targets more or periods of reduced production as a result of such events, for
costly, more difficult or even impossible to achieve. If the example, fire outbreaks at blast furnace A at Gijón (Spain) and
Company is unable to make the necessary investments to blast furnace #4 at Dunkirk (France) in March 2023.
decarbonize and reach its 2030 decarbonization targets due to
ArcelorMittal’s mining operations, in particular, are subject to the
the design of governmental policy in Europe or other
hazards and risks usually associated with the exploration,
jurisdictions where it operates (see “—Changes in assumptions
development and production of natural resources through either
underlying the carrying value of certain assets, including as a
open-pit or underground mining operations, any of which could
result of adverse market conditions, could result in the
result in production shortfalls or damage to persons or property,
impairment of such assets, including intangible assets such as
delay production, increase production costs and result in death
goodwill” below), it may negatively affect its competitiveness,
or injury to persons, damage to property and liability for
profitability, cash flows, financing costs (due to the inclusion, as
ArcelorMittal, some or all of which may not be covered by
from 2021, of ESG KPI-based margin adjustment clauses in its
insurance, as well as substantially harm ArcelorMittal’s
principal bank financing facility), results of operations and
reputation, both as a Company focused on ensuring the health
financial condition, as well as harm its reputation.
and safety of its employees and more generally. ArcelorMittal’s
ArcelorMittal could experience labor disputes that may mining operations have experienced several explosions,
disrupt its operations and its relationships with its including in Kazakhstan, an explosion in the Abayskaya mine in
customers and its ability to rationalize operations and November 2021, a roof collapse at Temirtau in June 2022, an
reduce labor costs in certain markets may be limited in explosion in the Lenina coal mine in November 2022 and an
practice or encounter implementation difficulties. explosion at the Kostenko coal mine in October 2023. Certain of
A majority of the employees of ArcelorMittal and of its these incidents have resulted or may result in fatalities
contractors are represented by labor unions and are covered by (including the last one noted, which resulted in 46 fatalities),
collective bargaining or similar agreements, which are subject to production stoppages, governmental investigations or
periodic renegotiation. Strikes or work stoppages could occur proceedings and/or in costs and liabilities and negatively impact
prior to, or during, negotiations preceding new collective the Company’s reputation or the operations of the affected
bargaining agreements, during wage and benefits negotiations facilities. Such incidents could also lead to loss of key
or during other periods for other reasons, in particular in personnel, loss of key assets, or put at risk our employees (and
connection with any announced intentions to adapt the footprint. those of sub-contractors and suppliers) or persons living near
ArcelorMittal may experience strikes and work stoppages at affected sites. Following the accidents in Kazakhstan, the
various facilities. Prolonged strikes or work stoppages could Company sold its Kazakh steel and mining operations in
have an adverse effect on the operations and financial results of December 2023. See also"—Key transactions and events in

20
 Management report

2023", “—ArcelorMittal is subject to strict environmental, health may prove inaccurate; and changes in iron ore prices,
and safety laws and regulations that could give rise to a operating and capital costs and other assumptions used to
significant increase in costs and liabilities” and “—ArcelorMittal calculate these estimates may render certain reserves and
is subject to economic policy, military, political, social and legal resources uneconomical to mine.
risks and uncertainties in the emerging markets in which it There is a degree of uncertainty attributable to the estimation of
operates or proposes to operate, and these uncertainties may mineral reserves and resources. Until mineral reserves and
have a material adverse effect on ArcelorMittal’s business, resources are actually mined and processed, the quantity of
financial condition, results of operations or prospects”. Conflicts metal and grades must be considered as estimates only and no
may also cause interruptions to operations; see “—Russia’s assurance can be given that the indicated levels of metals will
invasion of Ukraine, international reaction to it (in particular in be produced. In making determinations about whether to
the form of sanctions) and any regional or global escalation of advance any of its projects to development, ArcelorMittal must
the conflict, could adversely affect the Company’s business, rely upon estimated calculations for the mineral reserves and
results of operations and financial condition”. mineral resources and grades of mineralization on the
Company’s properties.
In addition, natural disasters and severe weather conditions
could lead to significant damage at ArcelorMittal’s production The estimation of mineral reserves and resources is a subjective
facilities and general infrastructure or cause shutdowns. For process that is partially dependent upon the judgment of the
example, ArcelorMittal Mexico’s production facilities located in qualified persons preparing such estimates. The process relies
Lázaro Cárdenas, Michoacán, Mexico are located in or close to on the quantity and quality of available data and is based on
areas prone to earthquakes. The Lázaro Cárdenas area has, in knowledge, mining experience, statistical analysis of drilling and
addition, been subject to a number of tsunamis in the past. The sampling results and industry practices. Valid estimates made at
site of the joint venture AM/NS Calvert (“Calvert”) in the United a given time may significantly change when new information
States is located in an area subject to tornados and hurricanes. becomes available.
ArcelorMittal also has assets in locations subject to bush fires,
specifically in South Africa, and to Arctic freeze, specifically in ArcelorMittal’s estimates of mineral reserves and resources are
Baffinland. More generally, changing weather patterns and based on interpretation of geological data and statistical
climatic conditions in recent years, possibly due to climate inferences or assumptions drawn from the results of drilling and
change, have added to the unpredictability and frequency of sampling analysis made as of the date of such estimates.
natural disasters.
ArcelorMittal periodically updates its mineral reserve and
Severe weather conditions can also affect ArcelorMittal’s resources estimates based on the conclusions of the relevant
operations in particular due to the long supply chain for certain qualified persons with respect to new data generated from
of its operations and the location of certain operations in areas exploratory and infill drilling campaigns, results from technical
subject to harsh winter conditions (i.e., Canada) or areas that studies and the experience acquired during the operation of the
are susceptible to droughts (i.e., South Africa, Mexico and mine and metallurgical processing, as well as changes to the
Brazil). Water in particular is crucial to the steelmaking process, assumptions used to calculate these estimates. Additional data
and the risk that the authorities may restrict license to withdraw generated may not be consistent with the data on which
water as a result of chronic drought could increase operating previous mineral resources and mineral reserves were based.
costs and reduce production capacity. Flooding has also Therefore, estimates may change from period to period or may
affected ArcelorMittal’s operations, for example AMMC at Mont need to be revised, and there can be no assurance that the
Wright, Canada in September 2022, and, more regularly, in mineral resources or mineral reserves in this report will be
Liberia, when heavy rains during the wet season have caused recovered at the grade, quality or quantities presented.
handling and logistic constraints that impacted shipment
There can be uncertainty in the assumptions used that may
volumes. Damage to ArcelorMittal production facilities due to
materially impact and result in significant changes to the
natural disasters and severe weather conditions could, to the
Company’s current estimates. The assumptions that can
extent that lost production cannot be compensated for by
fluctuate may include, but are not limited to: market prices
unaffected facilities, adversely affect its business, results of
including long-term forecasts; operating and capital costs;
operations or financial condition. More generally, these severe
changes to estimation input parameters and techniques; and
weather conditions could increase in frequency and severity due
changes to cut-off grades, mining, and metallurgical recovery
to climate change.
rates. These changes may also render some or all of our current
ArcelorMittal’s reserve and resource estimates may proven and probable mineral reserves and measured and
materially differ from mineral quantities that it may be able indicated mineral resources uneconomic to exploit and may
to actually recover; ArcelorMittal’s estimates of mine life
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 Management report

ultimately result in a reduction of mineral reserves and timely manner effective and efficient countermeasures. Although
resources. ArcelorMittal performs annual cyber maturity assessments in
many of its business units, which are supplemented by in-depth
Mineral resources are subject to further exploration and cyber audits and penetration testing exercises performed by
evaluation of material factors such as operating costs, grades, ArcelorMittal Global Assurance, the risk of significant data
and recoveries, further engineering, legal and economic breaches, data theft, unauthorized access or successful hacking
feasibility that would allow for the conversion to mineral cannot be eliminated. There may also be an increased risk of
reserves. Consequently, no assurance can be given that mineral cybersecurity breaches due to ongoing geopolitical tensions
resources will become recoverable proven and probable mineral involving Russia. See also "—Cybersecurity".
reserves in the future.
If unauthorized parties attempt or manage to bring down the
In addition, inferred mineral resources have a great amount of Company’s website or force access into its information
uncertainty as to their existence and their economic and legal technology systems, they may be able to misappropriate
feasibility. Readers should not assume that any part of an personal and confidential information, cause interruptions in the
inferred mineral resource will be upgraded to a higher category Company’s operations, damage its computers or process
or that any of the mineral resources not already classified as control systems or otherwise damage its reputation and
mineral reserves will be reclassified as mineral reserves. business. In such circumstances, the Company could be held
liable or be subject to regulatory or other actions for breaching
If a project proves not to be economically feasible by the time
confidentiality and personal data protection rules including the
ArcelorMittal is able to exploit it, ArcelorMittal may incur
EU’s General Data Protection Regulation (“GDPR”). Any
substantial losses and be obliged to recognize impairments. In
compromise of the security of the Company’s information
addition, potential changes or complications involving
technology systems could result in a loss of confidence in the
metallurgical and other technological processes that arise during
Company’s security measures and subject it to litigation, civil or
the life of a project may result in delays and cost overruns that
criminal penalties, and adverse publicity that could adversely
may render the project not economically feasible. In addition,
affect its reputation, financial condition and results of operations.
ArcelorMittal faces rising extraction costs over time as reserves
deplete. III. Risks related to ArcelorMittal’s acquisitions and investments

ArcelorMittal’s reputation and business could be materially ArcelorMittal has grown through acquisitions and may
harmed as a result of data breaches, data theft, continue to do so. Failure to manage external growth and
unauthorized access or successful hacking. difficulties completing planned acquisitions or integrating
ArcelorMittal’s operations depend on the secure and reliable acquired companies could harm ArcelorMittal’s future
performance of its information technology systems. An results of operations, financial condition and prospects.
increasing number of companies, including ArcelorMittal, have The Company was formed and subsequently grew through
experienced intrusion attempts or even breaches of their mergers and acquisitions. After a pause, the Company made
information technology security, some of which have involved several large acquisitions in the recent period. To the extent
sophisticated and highly targeted attacks on their computer ArcelorMittal continues to pursue significant acquisitions,
networks. Phishing, ransomware and virus attacks have been financing of such acquisitions may (depending on the structure)
increasing in more recent years. For example, in 2023, several result in increased debt, leverage and gearing. Acquisitions also
instances of malicious activity were detected on certain of the entail increased operating costs, as well as greater allocation of
Company’s servers and systems, including in Spain, Brazil, management resources away from daily operations. Managing
Germany and Venezuela. See "—Cybersecurity". acquisitions requires the continued development of
ArcelorMittal’s financial and management information control
Adverse consequences of technological advances like Industry
systems, the integration of acquired assets with existing
4.0, Cloud Computing, Internet of Things, GenAi and Blockchain
operations, the adoption of manufacturing best practices,
may increase threats or cause damage to ArcelorMittal, for
handling any labor disruptions that may arise, attracting and
example by impacting shop-floor systems supporting production
retaining qualified management and personnel as well as the
and maintenance and thereby forcing plant operations to revert
continued training and supervision of such personnel, and the
to manual mode with loss of production, resulting in new risks to
ability to manage the risks and liabilities associated with the
ArcelorMittal’s operations and systems. Because the techniques
acquired businesses. Acquisitions may also result in subsequent
used to obtain unauthorized access, disable or degrade service
disputes or financial liabilities, including in respect of put options
or sabotage systems change frequently and often are not
granted to selling shareholders over a retained minority stake.
recognized until launched against a target, the Company may
For example, Votorantim S.A. is contesting the exercise price of
be unable to anticipate these techniques or to implement in a
the put option it had over its stake in ArcelorMittal Brasil,
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 Management report

representing substantial financial exposure for the Company. In restructuring proceedings (including a “composition” (as
addition, acquisitions may entail future capital expenditures, described below)) may be initiated by the debtor and (b) if at the
either as a condition or in order to realize synergies, operational time of such application any such restructuring proceeding
efficiencies or strategic benefits. Such capital expenditure may (including a Concordato (as described below)) is pending, it
not provide the anticipated return on investment. More must be dismissed and terminated.
generally, failure to manage acquisitions could have a material
adverse effect on ArcelorMittal’s business, financial condition, On January 15, 2024, ADI applied to the Chamber of Commerce
results of operations or prospects. of Milan for the opening of so-called out-of-court composition
(composizione negoziata della crisi; “Composition”) proceedings
ArcelorMittal faces further risks in relation to its interest in under the Italian Code on Distress and Insolvency, requesting in
Acciaierie d'Italia (“ADI”), which has been placed in a particular the appointment of an expert to facilitate negotiations
special form of insolvency proceedings (extraordinary with creditors. ADI simultaneously applied to the Court of Milan
administration). to be granted certain protective measures. The Court of Milan
In 2017 the Company entered into an agreement with the rejected ADI’s requests by means of two orders dated January
Italian-government appointed commissioners managing Ilva for 31 and February 16, 2024. Accordingly, on February 16, 2024,
the lease and subsequent conditional purchase of the business ADI withdrew the Composition and filed instead for concordato
of Ilva (the “Ilva Agreement”) and started to operate the preventivo, a court-supervised composition with creditors
business as a lessee in November 2018. In March 2020 the (“Concordato”), again before the Court of Milan. Pending this
parties signed an amendment to the Ilva Agreement settling proceeding, ADI would benefit from a stay on enforcement
litigation between them around an intervening change in actions and ascertainment of ADI’s insolvency (which is a
applicable law and envisaging a public-private partnership. prerequisite for the opening of insolvency proceedings).
Accordingly, in December 2020 ArcelorMittal and Invitalia, an
Italian state-owned company, agreed that Invitalia would invest On February 18, 2024, however, Invitalia applied to the Italian
up to an agreed amount of equity in ADI in two tranches. Government to place ADI in extraordinary administration,
Invitalia made the first equity investment in April 2021 but did not exercising the special power that was granted to it under the EA
make the second as certain conditions precedent were not met; Decree-Law. On February 20, 2024, the Italian Government
instead, it (along with ArcelorMittal) made a convertible loan to issued a decree placing ADI in EA and naming an extraordinary
ADI in February 2023 in light of the adverse effect on ADI’s commissioner. To date, the court of Milan has not ascertained
financial situation of the spike in energy costs resulting from the ADI’s insolvency, which is a further prerequisite for the EA
conflict in Ukraine. proceeding to be definitively opened. If it does, ArcelorMittal will
in practice be stripped of its rights as an indirect shareholder of
In the fourth quarter of 2023, notwithstanding such shareholder ADI.
contributions, ADI’s financial condition deteriorated due in
particular to the repeal of relief measures for energy-intensive ArcelorMittal recorded a $1.4 billion impairment charge in its
companies. ArcelorMittal, the Italian Government and Invitalia 2023 financial statements with respect to its investment in ADI
discussed the terms and conditions of a possible support to ADI due to a downward revision of expected future cash flows and
to address its short-term cash needs and the funding the then-uncertainty regarding its future. The subsequent
requirements to enable it to complete the acquisition of Ilva’s placement of ADI in EA, an onerous and unprecedented
business units. The parties were not able to reach agreement on procedure in this context, could lead to further disputes.
addressing ADI’s funding needs.
ArcelorMittal’s greenfield, brownfield and other investment
On January 18, 2024 the Italian Government adopted a Decree- projects are subject to financing, execution and completion
Law (the “EA Decree-Law”) which, in particular, further amended risks.
the rules ordinarily applicable for the opening of “extraordinary The Company has announced a number of greenfield or
administration” proceedings (“EA”). EA is a form of insolvency brownfield development projects as well as other significant
proceeding reserved to large strategic companies where the investment projects which are capital intensive. See “Properties
board and shareholders are stripped of any power and replaced and capital expenditures—Property, plant and equipment—
by commissioners appointed by the Italian Government. Investments in joint ventures” and “Properties and capital
Normally, only the debtor company (based on a resolution of its expenditures—Capital expenditures” for further information on
board) is entitled to seek access to this type of EA. However, as projects the Company has announced.
a result of the EA Decree-Law and a Decree-Law passed in
To the extent these projects go forward, they would entail
January 2023 a 30% or greater shareholder of such a company
substantial capital expenditures, and their timely completion and
may request to the Italian Government the admission of such a
successful operation may be affected by factors beyond the
company to EA proceedings and (a) thereafter no alternative
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 Management report

control of ArcelorMittal. These factors include receiving financing guarantee the debt or contractual obligations of its joint
on reasonable terms, obtaining or renewing required regulatory ventures. This may particularly be the case for joint ventures
approvals and licenses, securing and maintaining adequate that are strategic and that are expanding and developing, such
property rights to land and mineral resources, local opposition to as AMNS India and Calvert (see "Property and Capital
land acquisition or project development, managing relationships expenditures—Investments in joint ventures” and "Property and
with or obtaining consents from other shareholders, revision of Capital expenditures—Capital expenditures"). AMNS India, in
economic viability projections, demand for the Company’s particular, has large-scale and ambitious projects to expand its
products, local environmental or health-related conditions, and operations and further improve operational profitability, which
general economic conditions. Any of these factors may cause may either not come to fruition or require greater than
the Company to delay, modify or forego some or all aspects of anticipated investments or expenditures. AMNS India has also
its development projects. For investment projects that the made significant acquisitions in recent years that it has financed
Company expects to fund primarily through internal sources, with its own cash and drawings under existing financings
these sources may prove insufficient depending on the amount (including ones guaranteed by its shareholders). The Company
of internally generated cash flows and other uses of cash, and currently expects that any future acquisitions would likely be
the Company may need to choose between incurring external similarly financed. Moreover, the joint venture has announced
financing or foregoing the investment. The Company cannot $7.4 billion in projected capital expenditure requirements that it
guarantee that it will be able to execute its greenfield, brownfield expects to finance similarly (subject to potential cost overruns).
or other investment projects, and to the extent that they The risks in this respect are compounded to an extent by the
proceed, that it will be able to complete them on schedule, fact that AMNS India is owned and operated by a joint venture
within budget, or achieve an adequate return on its investment. with attendant risks around strategic alignment, potential discord
Conversely, should the Company decide to postpone or cancel and deadlock.
development projects, it could incur various negative
consequences such as litigation or impairment charges, as well As of December 31, 2023, ArcelorMittal had given $5.0 billion of
as loss of anticipated strategic benefits. guarantees on behalf of associates and joint ventures see notes
2.4.1, 2.4.2 and 9.4 to ArcelorMittal’s consolidated financial
ArcelorMittal faces risks associated with its investments in statements. Such amounts may also increase as noted above.
joint ventures and associates. Other sureties, first demand guarantees, letters of credit,
ArcelorMittal has investments in numerous joint ventures and pledges and other collateral included $319 million and $375
associates for a total carrying amount of $10.1 billion at million of commitments given on behalf of associates as of
December 31, 2023. See “Properties and capital expenditures— December 31, 2023 and 2022, respectively, and $313 million
Property, plant and equipment—Investments in joint ventures” and $598 million of commitments given on behalf of joint
and note 2.4 to the consolidated financial statements. In ventures as of December 31, 2023 and 2022, respectively.
particular, it has structured significant growth transactions in
recent years, including Calvert, AMNS India and VdSA as joint Third, joint ventures and associates may experience financial
ventures.These joint ventures subject ArcelorMittal to several difficulties. In such circumstances, ArcelorMittal may choose to
types of risks. restructure the joint venture, to contribute additional equity or to
guarantee additional financing. The Company also may be
First, risks that are endemic to joint ventures generally due to exposed to loss of its investment or calls on existing guarantees.
their nature as entities over which control is shared. These
include the risk of dead-lock and/or coordination issues affecting Finally, ArcelorMittal’s investments in joint ventures and
the implementation of strategy. To the extent joint ventures and associates may result in impairments as discussed above for
associates are controlled and managed by partners, they may ADI.
not fully comply with ArcelorMittal’s standards, controls and
IV. Risks related to ArcelorMittal’s financial position and
procedures, including ArcelorMittal’s health, safety, environment
organizational structure
and community standards; this could lead to higher costs,
reduced production or environmental, health and safety Changes in assumptions underlying the carrying value of
incidents or accidents, which could adversely affect certain assets, including as a result of adverse market
ArcelorMittal’s results and reputation. conditions, could result in the impairment of such assets,
including intangible assets such as goodwill.
Second, joint ventures may be the source of substantial
At each reporting date, in accordance with the Company’s
expenditures and financial exposure. Although ArcelorMittal’s
accounting policy described in note 5.3 to the consolidated
joint ventures are responsible for their own debt repayment and
financial statements, ArcelorMittal reviews the carrying amounts
it does not consolidate their indebtedness, ArcelorMittal may
of its tangible and intangible assets (goodwill is reviewed
make substantial cash contributions to extend loans to and/or
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 Management report

annually or whenever changes in circumstances indicate that respect of future regulatory or operational changes. Due to
the carrying amount may not be recoverable) to determine economic developments, uncertainties over the pace of
whether there is any indication that the carrying amount of those transition to and available public funding support to implement
assets may not be recoverable through continuing use. If any low-emission technologies, political and environmental actions
such indication exists, the recoverable amount of the asset (or that will be taken to meet the carbon reduction goals, regulatory
cash-generating unit) is reviewed in order to determine the changes and emissions activity arising from climate-related
amount of the impairment, if any. matters, the Company’s assumptions used in the recoverable
amount calculations, such as capital expenditures, carbon
If certain of management’s estimates change during a given emission costs and other assumptions are inherently uncertain
period, such as the discount rate, capital expenditures, expected and may ultimately differ from actual amounts. For further
changes to average selling prices, growth rates, shipments and information on these risks, see notes 1.3 and 5.3 to the
direct costs, the estimate of the recoverable amount of goodwill consolidated financial statements.
or the asset could fall significantly and result in impairment.
While impairment does not affect reported cash flows, the ArcelorMittal’s indebtedness could have an adverse impact
decrease of the estimated recoverable amount and the related on its results of operations and financial position, and the
non-cash charge in the consolidated statements of operations market’s perception of ArcelorMittal’s leverage may affect
could have a material adverse effect on ArcelorMittal’s results of its share price.
operations. For example, in 2023, the Company recognized $0.9 As of December 31, 2023, ArcelorMittal had total debt
billion of impairment charges in connection with the sale of its outstanding of $10.7 billion, $7.8 billion of cash and cash
operations in Kazakhstan and $0.1 billion related to its Long equivalents and restricted cash, and $5.4 billion available to be
business in South Africa. Substantial amounts of goodwill and drawn under existing credit facilities. The Company also relies
tangible and intangible assets remain recorded on the on its true sale of receivables programs ($4.5 billion of trade
Company’s consolidated statement of financial position. As of receivables sold at December 31, 2023), as a way to manage its
December 31, 2023, the Company’s balance sheet included working capital cycle.
$3.9 billion of goodwill.
While ArcelorMittal’s indebtedness has decreased significantly
More generally, no assurance can be given as to the absence of in recent years, were it to increase substantially in the future,
significant further impairment losses in future periods, this could contribute to the Company’s vulnerability to adverse
particularly if market conditions deteriorate. In particular, economic and competitive pressures in its industry, limit
changes in key assumptions used in the Group’s impairment flexibility in planning for, or reacting to, changes in its business
tests, due to market conditions, regulations (including and industry; limit its ability to borrow additional funds on terms
environmental regulations) or other reasons may result in that are acceptable to the Company or at all. More generally, a
additional impairment losses being recognized in the future. In deterioration of market conditions may impact ArcelorMittal’s
addition, for operations in jurisdictions where a legal obligation ability to refinance its indebtedness on acceptable conditions or
of carbon neutrality has been established (i.e., EU and Canada) at all.
the Company’s assumptions include the significant long-term
investments necessary to reach the Group’s announced carbon Credit rating agencies could downgrade ArcelorMittal’s ratings
emissions goals. With respect to operations in other jurisdictions either due to factors specific to ArcelorMittal, a prolonged
where decarbonization will occur at a different pace and which cyclical downturn in the steel industry and mining industries,
may not yet be subject to a legal obligation of carbon neutrality, macroeconomic trends (such as global or regional recessions or
a result of which future decarbonization capital expenditures economic shocks) or trends in credit and capital markets more
may not be included in their value in use calculations, the generally. While ArcelorMittal’s long-term credit ratings were
Company increased risk premiums included in their discount affirmed by Standard & Poor's (in June 2023) and by Moody's
rates until they are able to accelerate their decarbonization (in February 2024), any future downgrades could lead to an
strategy to meet the 2050 carbon neutrality objective and a legal increase in its cost of borrowing. The margin under
obligation arises in the relevant jurisdiction. The Company’s ArcelorMittal’s principal credit facilities and certain of its
assumptions for future cash flows also include an estimate for outstanding bonds is subject to adjustment in the event of a
costs that the Company expects to incur to acquire emission change in its long-term credit ratings, and downgrades that
allowances, which primarily impacts the flat steel operations in occurred in the past resulted in increased interest expense.
the EU under the ETS scheme and in Canada. The assumption
ArcelorMittal’s principal credit facilities contain restrictive
for carbon emission cost is based on historical experience,
covenants. These covenants limit, inter alia, encumbrances on
implementation of decarbonization strategies to mitigate or
the assets of ArcelorMittal and its subsidiaries, the ability of
otherwise offset such future costs and information available in
ArcelorMittal’s subsidiaries to incur debt and the ability of
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 Management report

ArcelorMittal and its subsidiaries to dispose of assets in certain ArcelorMittal’s ability to generate taxable income is subject to
circumstances. These restrictive covenants could limit general economic, financial, competitive, legislative, regulatory
ArcelorMittal’s operating and financial flexibility. Failure to and other factors that are beyond its control. If ArcelorMittal
comply with any covenant would enable the lenders to generates lower taxable income than the amount it has
accelerate ArcelorMittal’s repayment obligations. Moreover, assumed in determining its deferred tax assets, then the value
ArcelorMittal’s debt facilities have provisions whereby certain of deferred tax assets will be reduced. In addition, assumptions
events relating to other borrowers within the ArcelorMittal group regarding the future recoverability of deferred tax assets depend
could, under certain circumstances, lead to acceleration of debt on management’s estimates of future taxable income in
repayment under the credit facilities. Any invocation of these accordance with the tax laws applicable to ArcelorMittal’s
cross-acceleration clauses could cause some or all of the other subsidiaries in the countries in which they operate. If in the
debt to accelerate, creating liquidity pressures. In addition, the course of its assessments management determines that the
mere market perception of a potential breach of any financial carrying amount of any of its deferred tax assets may not be
covenant, to the extent in effect, could have a negative impact recoverable pursuant to such prevailing tax laws, the
on ArcelorMittal’s ability to refinance its indebtedness on recoverable amount of such deferred tax assets may be
acceptable conditions. impaired.

In addition to the foregoing specific risks relating to Underfunding of pension and other post-retirement benefit
ArcelorMittal’s indebtedness, its share price is affected by the plans at some of ArcelorMittal’s operating subsidiaries
markets’ perception of its leverage. could require the Company to make substantial cash
ArcelorMittal could also, in order to increase its financial contributions to pension plans or to pay for employee
flexibility and strengthen its balance sheet, implement capital healthcare, which may reduce the cash available for
raising measures such as equity offerings which could ArcelorMittal’s business.
(depending on how they are structured) dilute the interests of ArcelorMittal’s principal operating subsidiaries in Brazil, Canada,
existing shareholders or require them to invest further funds to Europe and South Africa provide defined benefit pension and
avoid such dilution. other post-retirement benefit plans to their employees. Some of
these plans are currently underfunded, see note 8.2 to the
For further information on ArcelorMittal’s indebtedness see consolidated financial statements for the total value of plan
“Operating and financial review—Liquidity and capital assets and any deficit.
resources,” “Operating and financial review—Operating results”
and note 6.1.2 to the consolidated financial statements. ArcelorMittal’s funding obligations depend upon future asset
performance, which is tied to equity and debt markets to a
ArcelorMittal’s ability to fully utilize its recognized deferred substantial extent, the level of interest rates used to discount
tax assets depends on its profitability and future cash future liabilities, actuarial assumptions and experience, benefit
flows. plan changes and government regulation. Because of the large
At December 31, 2023, ArcelorMittal had $9.5 billion recorded number of variables that determine pension funding
as deferred tax assets on its consolidated statement of financial requirements, which are difficult to predict, as well as any
position, representing a $0.9 billion increase as compared to legislative action, future cash funding requirements for
December 31, 2022. In 2023, the Company recorded deferred ArcelorMittal’s pension plans and other post-employment benefit
tax benefits of $0.8 billion mainly due to the recognition of plans could be significantly higher than current estimates.
deferred tax assets following increase of future profit Increases in the general life expectancy assumption have
expectation in a number of jurisdictions, mainly in Luxembourg. contributed to increases in the defined benefit obligation. In
The deferred tax benefits of $0.4 billion recorded in 2022 related these circumstances, funding requirements could have a
mainly to recognition of deferred tax assets in Luxembourg material adverse effect on ArcelorMittal’s business, financial
following an increase in the future taxable income expectation condition, results of operations or prospects.
on unrealized gains on derivative instruments. The deferred tax
assets can be utilized only if, and only to the extent that, ArcelorMittal’s results of operations could be affected by
ArcelorMittal’s operating subsidiaries generate adequate levels fluctuations in foreign exchange rates, particularly the euro
of taxable income in future periods to offset the tax loss carry to U.S. dollar exchange rate, as well as by exchange
forwards and reverse the temporary differences prior to controls imposed by governmental authorities in the
expiration. At December 31, 2023, the amount of future income countries where it operates.
required to recover ArcelorMittal’s deferred tax assets of $9.5 ArcelorMittal operates and sells products globally and as a
billion was at least $41.5 billion at certain operating subsidiaries. result, its business, financial condition, results of operations or
prospects could be adversely affected by fluctuations in
exchange rates. A substantial portion of ArcelorMittal’s assets,
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 Management report

liabilities, operating costs, sales and earnings are denominated V. Legal and regulatory risks
in currencies other than the U.S. dollar (ArcelorMittal’s reporting ArcelorMittal is subject to strict environmental, health and
currency). Accordingly, its results of operations are subject to safety laws and regulations that could give rise to a
translation risk (i.e., the U.S. dollar value of revenue and profits significant increase in costs and liabilities.
generated in other currencies and its debt denominated in other ArcelorMittal is subject to a broad range of environmental,
currencies) and transaction risk (i.e., a mismatch between the health and safety laws and regulations in each of the
currency of costs and revenue). For example, the Company had jurisdictions in which it operates. These laws and regulations
recorded in equity $1.5 billion of cumulative foreign exchange impose increasingly stringent standards regarding general
translation losses in relation to ArcelorMittal Temirtau; this health and safety, air emissions, discharges of wastewater, the
amount was reclassified to the consolidated statements of use, handling and transportation of hazardous, toxic or
operations upon its disposal. dangerous materials, waste disposal practices and the
remediation of environmental contamination, and health and
Moreover, ArcelorMittal operates in several countries whose safety matters, among other things. The costs of complying with,
currencies are, or have in the past been, subject to limitations and the imposition of liabilities pursuant to these laws and
imposed by those countries’ central banks, or which have regulations can be significant, and compliance with new and
experienced sudden and significant devaluations. In emerging more stringent obligations may require additional capital
countries where ArcelorMittal has operations and/or generates expenditures or modifications in operating practices. Failure to
substantial revenue, such as Argentina, Brazil, India, South comply can result in civil and or criminal penalties being
Africa, Venezuela and Ukraine, the risk of significant currency imposed, the suspension of permits, requirements to curtail or
devaluation is high. For example, the Argentinian peso has suspend operations and lawsuits by third parties.
continued to substantially depreciate since 2018.
In the EU, the Industrial Emissions Directive (“IED”) defines the
Currency devaluations, the imposition of new exchange controls so called Best Available Techniques (“BAT”) and sets the ranges
or other similar restrictions on currency convertibility, or the of values that need to be established as limits in the
tightening of existing controls in the countries in which environmental permits. The BAT are also used in other regions
ArcelorMittal operates could adversely affect its business, as reference, and are periodically reviewed (in theory, an eight-
financial condition, results of operations or prospects. See year cycle) to ensure a continuous improvement of
“Business overview— Government regulations—Key currency environmental performance. In November 2023, a provisional
regulations and exchange controls” and “Operating and financial agreement was reached between the institutions on the revised
review—Key factors affecting results of operations—Impact of IED setting stricter rules to define limits and requirements in the
exchange rate movements.” permits as well as tighter compliance and control rules with
additional enforcement provisions, supported by growing
The Significant Shareholder has the ability to exercise
general concerns about the effects of pollution on the
significant influence over the outcome of shareholder
environment and human health.
votes.
At December 31, 2023, a trust (HSBC Trustee (C.I.) Limited, as Despite ArcelorMittal’s efforts to comply with environmental,
trustee), of which Mr. Lakshmi N. Mittal, Mrs. Usha Mittal and health and safety laws and regulations, and monitor and reduce
their children are the beneficiaries (referred to as the “Significant accidents at its facilities, health, safety and environmental
Shareholder”), beneficially owned (within the meaning of Rule incidents or accidents, including those involving serious injury or
13d-3 under the Securities Exchange Act of 1934, as amended) death, have occurred and may in the future occur. Such
ordinary shares amounting to 340,014,215 in the aggregate accidents could include explosions or gas leaks, fires or
(when aggregated with ordinary shares of ArcelorMittal held collapses in underground mining operations, crushing incidents,
directly by Mr. Lakshmi N. Mittal and Mrs. Usha Mittal) , vehicular accidents, falls while working at heights, and other
representing 41.50% of ArcelorMittal’s then outstanding shares. accidents involving mobile equipment, or exposure to
As a result, the Significant Shareholder has the ability to radioactive or other potentially hazardous, toxic or dangerous
significantly influence the decisions adopted at the ArcelorMittal materials, which could have significant adverse consequences
general meetings of shareholders, including matters involving for the Company’s workers and facilities, as well as the
mergers or other business combinations, the acquisition or environment. For example, the Company’s previous operations
disposition of assets, issuances of equity and obtaining funding in Kazakhstan suffered several fatal accidents, culminating most
through debt. The Significant Shareholder also has the ability to recently in the disastrous explosion at the Kostenko mine on
significantly influence a change of control of ArcelorMittal. For October 28, 2023, which resulted in 46 deaths. Accidents such
further information on the Company’s major shareholders, see as these have occurred despite the Company’s intensified focus
“Shareholders and markets—Major shareholders”. over the past two years on improving safety across the Group.

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 Management report

Certain of these incidents may result in costs and liabilities and ArcelorMittal’s operations may also be located in areas where
negatively impact the Company’s reputation or the operations of individuals or communities could regard its activities as having a
the affected facilities. Such accidents could lead to production detrimental effect on their natural environment and conditions of
stoppages, loss of personnel, loss of key assets, or put at risk life. Any actions taken by such individuals or communities in
the Company’s employees (and those of sub-contractors and response to such concerns could compromise ArcelorMittal’s
suppliers) or persons living near affected sites. In addition, any profitability or, in extreme cases, the viability of an operation or
gap between community and worker expectations and the development of new activities in the relevant region or
ArcelorMittal’s environmental, health and safety perceived country.
performance, as a result of any accidents, safety incidents or
even the perception of potential safety or environmental issues, For further information, see “Business overview—Government
may negatively impact community relations, labor relations, regulations—Health and safety laws and regulations” and
customer relations and the Company’s reputation and result in “Business overview—Government regulations—Environmental
disruptions to the Company’s operations. laws and regulations” and note 9.1 to the consolidated financial
statements.
In addition, accidents may arise from the usage of certain types
of equipment or from the adoption of operating practices that Laws and regulations restricting emissions of greenhouse
prove to be insufficiently safe or the failure to follow the gases could force ArcelorMittal to incur increased capital
Company’s standard operating procedures. Accidents may also and operating costs and could have a material adverse
be caused by human error, the lack of knowledge by its effect on ArcelorMittal’s results of operations, financial
employees on what to do in a given situation or the inability of its condition and reputation.
employees to follow the prescribed protocols in a given Compliance with new and more stringent environmental
situation. Working in remote or hazardous conditions, where it obligations relating to GHG emissions may require additional
may be more difficult to mitigate the consequences of an capital expenditures or modifications in operating practices, as
accident or put in place certain preventative measures, may well as additional reporting obligations. The integrated steel
further increase such risks. In the past, the Company’s ability to process involves carbon and generates substantial carbon
conduct certain in-person health and safety training sessions for dioxide (“CO2”). The EU has established GHG regulations and
its employees was impeded by restrictions resulting from the adopted new legislation as part of the “Fit for 55” package, see
COVID-19 pandemic, which had negative effects on “Business Overview – Government Regulations—Environmental
ArcelorMittal’s health and safety record. The occurrence of an laws and regulations—Climate Change".
accident may also lead to legal claims that seek to hold the
The new laws are all interconnected, and they combine:
Company liable, and it may not be successful in defending
tightening and extending the existing ETS; increased use of
against such claims.
renewable energy; greater energy efficiency; a faster roll-out of
ArcelorMittal also incurs costs and liabilities associated with the low emission transport modes and the infrastructure and fuels to
assessment and remediation of contaminated sites, and in its support them; an alignment of taxation policies with the
mining activities, those resulting from tailings and sludge European Green Deal objectives; a carbon border adjustment
disposal, effluent management, and rehabilitation of land mechanism (“CBAM”) to prevent carbon leakage; and tools to
disturbed during mining processes. In addition to the impact on preserve and grow natural carbon sinks. Of particular relevance
current facilities and operations, environmental remediation are the ETS and CBAM regulations that will impact the carbon
obligations can give rise to substantial liabilities in respect of emissions allowances from the second trading period of Phase
divested assets and past activities. This may also be the case IV (i.e., 2026-2030) onwards. ArcelorMittal will likely incur
for acquisitions when liabilities for past acts or omissions are not additional costs in future periods to acquire emissions
adequately reflected in the terms and price of the acquisition. allowances beginning in 2026 due to the planned phase-out of
ArcelorMittal could become subject to further remediation the free allocation of CO2 emissions as from such date. The
obligations in the future, as additional contamination is financial impact on ArcelorMittal, in particular the extent of
discovered or clean-up standards become more stringent. margin squeeze, will depend on many factors, including actual
CO2 market prices, hedging, the pace of ArcelorMittal's
ArcelorMittal could become subject to unidentified liabilities in decarbonization of its European steel production, the
the future, such as those relating to uncontrolled tailings effectiveness of the CBAM and the amount of premiums
breaches or other future events or to underestimated emissions customers may be willing to pay for decarbonized steel.
of polluting substances. It has incurred such liabilities in the
recent past in relation to the tailing dam at the Serra Azul mine Similar regulations have been implemented to date in several
in Brazil. jurisdictions and additional measures may well be enacted in the

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future in other jurisdictions, further increasing the complexity of imports into Europe face the same carbon costs as producers in
compliance with environmental laws and regulations. Europe. The CBAM established a transition period of October 1,
2023 to December 31, 2025, during which there will be no
Whether in the form of a national or international cap-and-trade financial obligation besides the possibility of penalties being
emissions permit system, a carbon tax or acquisition of emission imposed for failures to report. As from 2026 free allocation of
rights at market prices, emissions controls, reporting CO2 emissions allowances will be progressively phased out,
requirements, or other regulatory initiatives, such environmental with no free allocation to be granted as from 2034.
regulations could have a negative effect on ArcelorMittal’s
production levels, income and cash flows. These laws could This would contribute to a very significant shortage in free
also negatively affect the Company’s suppliers and customers, allocation in the later years of the second trading period of
which could translate into higher costs and lower sales. In Phase IV. This could result in the Company incurring significant
particular, the European Commission’s decision to further additional costs to acquire emissions allowances, the purchase
reduce the allocation of CO2 emission rights to companies (as of which may or may not be effectively hedged in the future. The
discussed above) could negatively impact the global steel financial impact will also depend on the evolution of the
industry, as the amount of such rights is currently insufficient to allowances price and the Company’s parallel progress in
satisfy technically achievable operating conditions. CO2 decarbonization, the cost of which may also be higher than
emissions regulations have already resulted in increased costs currently expected. In addition, the effectiveness of the CBAM
in Europe, and ArcelorMittal expects costs will continue to proposal against carbon leakage is untested, the provisions to
increase with the implementation of Phase IV of the ETS that address circumvention risks, including resource shuffling and
started in 2021 and that has seen EU allowances prices cost absorption, seem insufficient, and no solution for exports
increase significantly compared to 2020 levels, with has been yet considered. In addition, CBAM will be set up to
expectations that prices will continue to increase, despite recent equalize the price of carbon paid for EU products operating
volatility. In addition, the COVID-19 pandemic and its economic under the EU ETS and for imported goods by requiring
consequences caused a decline in production at most EU sites companies that import into the EU to purchase so-called CBAM
in 2020. Given that, under Phase IV rules, the activity levels certificates to pay the difference between the carbon price paid
from 2020 have an effect on the calculation of the allocations in in the country of production and the price of carbon allowances
2021 and 2022 and also on the second trading period of Phase in the EU ETS.
IV (2026-2030), lower production levels might lead to reduced
allocations. In addition, as regulators and investors increasingly focus on
climate change issues, the Company is exposed to the risk of
Furthermore, many developing nations have not yet instituted frameworks and regulations being adopted that are ill-adapted
significant GHG regulations, and the Paris Agreement to its operations. For example, the most established framework
specifically recognizes that GHG emissions will peak later in for carbon pricing and emissions trading schemes is currently
developing countries. As the Intended Nationally Determined the European Union’s ETS discussed above. As mentioned
Contributions (“INDC”) for developing nations under the Paris above, the Company has highlighted the importance that a
Agreement may be less stringent than for developed nations in CBAM be included in this system in order to avoid competitive
light of different national circumstances, ArcelorMittal may be at distortions such as European steel becoming overpriced due to
a competitive disadvantage relative to steelmakers having more European carbon policy, prompting the market to outsource its
or all of their production in developing countries. Depending on steel from other regions where carbon is less expensive. The
the extent of the difference between the requirements in European Climate Law requires the Commission to present a
developed regions (such as Europe) and developing regions legislative proposal of a Union 2040 target within six months of
(such as China or the CIS), this competitive disadvantage could the global stocktake, expected in the first quarter of 2024.
be severe and render production in the developed region Preparatory works have started and the Scientific Advisory
structurally unprofitable. High carbon costs in combination with Board has advised a 2040 target range of a 90-95% reduction of
weakening demand, rising imports, high energy costs and high emissions compared to 1990. In February 2024, the
iron ore prices was one of the factors underlying the Company’s Commission presented a communication recommending a 90%
decision to implement production cuts in Europe in 2019, in the reduction in net emissions by 2040 compared to 1990. The legal
second half of 2022 and in the fourth quarter of 2023. To proposal to table the 2040 climate target will be the
address the resulting competitive disadvantage compared to responsibility of the next Commission, following the European
imports, which is expected to increase in the future absent elections and the debates and dialogue which will take place. It
government intervention, the Company has been advocating is expected that such a target would trigger a further review of
vis-à-vis the European Commission to introduce a CBAM to the the ETS cap, likely leading to a tightened market that might
safeguard measures on steel imports in order to ensure that drive higher prices for allowances. With respect to investors, the

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European Union has reached a political agreement on a tax, excise duties, profit taxes, payroll-related taxes, property
package of measures to implement key actions with respect to taxes, mining taxes and other taxes. Tax laws and regulations in
its sustainable finance plan. In June 2020, the European some of these countries may be subject to frequent change,
Commission published the EU Taxonomy for Sustainable varying interpretation and inconsistent enforcement. Ineffective
Finance, a unified classification system to define what can be tax collection systems and national or local government budget
considered an environmentally sustainable economic activity, as requirements may increase the likelihood of the imposition of
a step in the efforts to channel investments into sustainable arbitrary or onerous taxes and penalties, which could have a
activities by making it clearer which economic activities most material adverse effect on ArcelorMittal’s financial condition and
contribute to meeting the EU’s environmental objectives. In results of operations. In addition to the usual tax burden
addition to the Taxonomy Delegated Act for the environmental imposed on taxpayers, these conditions create uncertainty as to
objectives on climate mitigation and adaptation effective as of the tax implications of various business decisions. This
January 1, 2022. Delegated Acts for the four other uncertainty could expose ArcelorMittal to significant fines and
environmental objectives have been published but do not penalties and to enforcement measures despite its best efforts
include manufacturing of steel as an eligible activity. In addition, at compliance, and could result in a greater than expected tax
in November 2022, the European Council adopted the burden. See note 10 to the consolidated financial statements.
Corporate Sustainability Reporting Directive (“CSRD”), which
will require extensive and detailed sustainability information In addition, many of the jurisdictions in which ArcelorMittal
based on reporting standard published in July 2023 (see operates have adopted transfer pricing legislation. If tax
"Business overview—Government regulations—Environmental authorities impose significant additional tax liabilities as a result
laws and regulations" and Business overview—Sustainable of transfer pricing adjustments, it could have a material adverse
development"). The SEC has also proposed new climate effect on ArcelorMittal’s financial condition and results of
change disclosure requirements. If based on the information that operations.
will be disclosed, financial institutions or other stakeholders,
It is possible that tax authorities in the countries in which
including the public, begin to view investments in steel and
ArcelorMittal operates will introduce additional revenue raising
mining as undesirable, it may become more difficult and/or more
measures. The introduction of any such provisions may affect
expensive for the Company to obtain financing. While the
the overall tax efficiency of ArcelorMittal and may result in
Company has taken significant steps and continues to adapt its
significant additional taxes becoming payable. Any such
operations in light of climate change and the need for
additional tax exposure could have a material adverse effect on
sustainability, such steps may not be in line with future
the Company’s financial condition and results of operations.
frameworks or regulations or market views of investment
suitability. Moreover, the Company may in the future face ArcelorMittal may face a significant increase in its income taxes
increasing shareholder activism and/or litigation in relation to if tax rates increase or the tax laws or regulations in the
sustainability matters. See also “The Group’s carbon emissions jurisdictions in which it operates, or treaties between those
intensity reduction targets are based on current assumptions jurisdictions, are modified in an adverse manner. This may
with respect to the costs, government and societal support for adversely affect ArcelorMittal’s cash flows, liquidity and ability to
the reduction of carbon emissions in particular regions and the pay dividends.
advancement of technology and infrastructure related to the
reduction of carbon emissions over time, which may not ArcelorMittal is subject to economic policy, military,
correspond in the future to ArcelorMittal’s current assumptions political, social and legal risks and uncertainties in the
and may render its targets more costly, more difficult, or even markets (including emerging ones) in which it operates or
impossible, to achieve.” proposes to operate, and these uncertainties may have a
material adverse effect on ArcelorMittal’s business,
For further information on environmental laws and regulations financial condition, results of operations or prospects.
and how they affect the Company’s operations, see “Business ArcelorMittal operates globally including in a large number of
overview—Government regulations—Environmental laws and emerging markets. In recent years, many of these countries
regulations” and note 9.1 to the consolidated financial have implemented measures aimed at improving the business
statements. environment and providing a stable platform for economic
The income tax liability of ArcelorMittal may substantially development. ArcelorMittal’s business strategy has been
increase if the tax laws and regulations in countries in developed partly on the assumption that this modernization,
which it operates change or become subject to adverse restructuring and upgrading of the business climate and physical
interpretations or inconsistent enforcement. infrastructure will continue, but this cannot be guaranteed. Any
Taxes payable by companies in many of the countries in which slowdown in the development of these economies could have a
ArcelorMittal operates are substantial and include value-added material adverse effect on ArcelorMittal’s business, financial
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 Management report

condition, results of operations or prospects, as could developed countries. ArcelorMittal may encounter difficulties in
insufficient investment by government agencies or the private enforcing court judgments or arbitral awards in some countries
sector in physical infrastructure. For example, the failure of a in which it operates because, among other reasons, those
country to develop reliable electricity and natural gas supplies countries may not be parties to treaties that recognize the
and networks, and any resulting shortages or rationing, could mutual enforcement of court judgments. Assets in certain
lead to disruptions in ArcelorMittal’s production. countries where ArcelorMittal operates could also be at risk of
expropriation or nationalization, and compensation for such
Moreover, some of the countries in which ArcelorMittal operates assets may be below fair value. For example, in December
have been undergoing substantial political transformations from 2023, the sale of ArcelorMittal Temirtau to QIC had a $2.4 billion
centrally controlled command economies to market-oriented negative impact on the Company's net income (see also note
systems or from authoritarian regimes to democratically elected 2.3 to the consolidated financial statements). In addition, the
governments and vice-versa. Political, economic and legal Venezuelan government has implemented a number of selective
reforms necessary to complete such transformation may not nationalizations of companies operating in the country to date.
progress sufficiently. On occasion, ethnic, religious, historical Most recently, ADI was placed in extraordinary administration by
and other divisions have given rise to tensions and, in certain the Italian Government in February 2024, thereby passing
cases, wide-scale civil disturbances and military conflict. The control from its shareholders (including ArcelorMittal) to
political systems in these countries are vulnerable to their government-appointed commissioners. Although ArcelorMittal
populations’ dissatisfaction with their government, reforms or the believes that the long-term growth potential in emerging markets
lack thereof, social and ethnic unrest and changes in is strong, and intends them to be the focus of the majority of its
governmental policies, any of which could have a material near-term growth capital expenditures, legal obstacles could
adverse effect on ArcelorMittal’s business, financial condition, have a material adverse effect on the implementation of
results of operations or prospects and its ability to continue to do ArcelorMittal’s growth plans and its operations in such countries.
business in these countries. The prospect of further unrest and
resulting political or economic destabilization cannot be ruled ArcelorMittal is subject to an extensive, complex and
out. Furthermore, certain of ArcelorMittal’s operations are also evolving regulatory framework which may expose it and its
located in areas where acute drug-related violence (including subsidiaries, joint ventures and associates to
executions and kidnappings of non-gang civilians) occurs and investigations by governmental authorities, litigation and
the largest drug cartels operate, such as the states of fines, in relation, among other things, to antitrust and
Michoacán, Sinaloa and Sonora in Mexico. compliance matters. The resolution of such matters could
negatively affect the Company’s strategy, operations,
Certain emerging markets where ArcelorMittal has operations profitability and cash flows in a particular period or harm its
have experienced or are experiencing particularly difficult reputation.
operating conditions. Many emerging markets are also at risk of ArcelorMittal’s business encompasses multiple jurisdictions and
economic crises (be it external debt, currency, domestic complex regulatory frameworks, including in relation to antitrust,
corporate, household or public debt crises) usually brought on and economic sanctions, anti-corruption and anti-money
by an economic or political shock which can exacerbate existing laundering matters. Laws and regulations in these areas are
domestic structural imbalances. Crises in Argentina and Turkey complex and constantly evolving and enforcement of them
have had negative impacts on the Company's core markets in continues to increase. ArcelorMittal may as a result become
Brazil and the EU, respectively. subject to increasing limitations on its business activities and to
the risk of fines or other sanctions for non-compliance. From
Finally, ArcelorMittal’s operations in certain countries may be
time to time, the Company is subject to review by authorities
affected by military conflicts. The current situation in Ukraine,
that monitor market power in any of the markets in which it
where the Company has substantial operations, is an example.
operates. To the extent that ArcelorMittal is deemed by relevant
See “—Russia’s invasion of Ukraine, international reaction to it
authorities to exhibit significant market power, it can be subject
(in particular in the form of sanctions) and any regional or global
to various regulatory obligations and restrictions, such as
escalation of the conflict, could adversely affect the Company’s
disposing of assets or granting access to its operations to third
business, results of operations and financial condition.”
parties or being prevented from completing acquisitions, which
Moreover, the legal systems in some of the countries in which could thereby adversely affect its results of operations and
ArcelorMittal operates remain less than fully developed, profitability. As a result of its position in the steel industry and its
particularly with respect to the independence of the judiciary, historical growth through acquisitions, ArcelorMittal could be
property rights, the protection of foreign investment and subject to governmental investigations and lawsuits by private
bankruptcy proceedings, generally resulting in a lower level of parties based on antitrust laws. These could require significant
legal certainty or security for foreign investment than in more expenditures and result in liabilities or governmental orders that

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could have a material adverse effect on ArcelorMittal’s business, U.S. investors may have difficulty enforcing civil liabilities
operating results, financial condition and prospects. An adverse against ArcelorMittal and its directors and senior
ruling in such type of proceedings could subject ArcelorMittal to management.
substantial administrative penalties and/or civil damages. No ArcelorMittal is incorporated under the laws of the Grand Duchy
assurance can be given that the Company will not be identified of Luxembourg with its principal executive offices and corporate
as having significant market power in any relevant markets in headquarters in Luxembourg. The majority of ArcelorMittal’s
the future and that it will not be subject to additional regulatory directors and senior management are residents of jurisdictions
requirements. outside of the United States. The majority of ArcelorMittal’s
assets and the assets of these persons are located outside the
ArcelorMittal’s governance and compliance processes, which United States. As a result, U.S. investors may find it difficult to
include the review of internal controls over financial reporting as effect service of process within the United States upon
well as a Code of Business Conduct and other rules and ArcelorMittal or these persons or to enforce outside the United
protocols for the conduct of business, may not prevent breaches States judgments obtained against ArcelorMittal or these
of laws and regulations or internal policies relating to persons in U.S. courts, including actions predicated upon the
compliance matters at ArcelorMittal or its subsidiaries, as well as civil liability provisions of the U.S. federal securities laws.
to instances of non-compliant behavior by its employees, Likewise, it may also be difficult for an investor to enforce in
contractors or other agents. This risk is also present at U.S. courts judgments obtained against ArcelorMittal or these
ArcelorMittal’s joint ventures and associates where ArcelorMittal persons in courts in jurisdictions outside the United States,
has a non-controlling stake and does not control governance including actions predicated upon the civil liability provisions of
practices or accounting and reporting procedures. the U.S. federal securities laws. It may also be difficult for a U.S.
investor to bring an original action in a Luxembourg court
Unfavorable outcomes in current and potential future litigation
predicated upon the civil liability provisions of the U.S. federal
and investigations relating to antitrust and compliance matters
securities laws against ArcelorMittal’s directors and senior
could reduce ArcelorMittal’s liquidity and negatively affect its
management and non-U.S. experts named in this annual report.
profitability, cash flows, results of operations and financial
condition, as well as harm its reputation. ArcelorMittal has identified a material weakness in internal
control over financial reporting as of December 31, 2023,
ArcelorMittal is currently and in the future may be subject
resulting from internal control deficiencies at one of the
to legal proceedings or product liability claims, the
Company’s Canadian subsidiaries, that could, if not
resolution of which could negatively affect the Company’s
remediated, result in material inaccuracies in the
profitability and cash flows in a particular period.
Company’s consolidated financial statements.
ArcelorMittal’s profitability or cash flows in a particular period
As described in “Additional Information—Management’s report
could be affected by adverse rulings in current and future legal
on internal control over financial reporting", management has
proceedings against the Company. See note 9.3 to the
concluded that, as of December 31, 2023, ArcelorMittal’s
consolidated financial statements.
internal control over financial reporting was ineffective due to a
In addition, ArcelorMittal sells products to major manufacturers material weakness that has been identified and which results
engaged in manufacturing and selling a wide range of end from internal control deficiencies at one of the Company’s
products, including products used in certain safety-critical Canadian subsidiaries. The material weakness relates to
applications, such as, for example, pipes used in gas or oil information technology general controls (“ITGCs”) in the areas
pipelines and in automotive applications. ArcelorMittal also from of user access and program change management over certain
time to time offers advice to these manufacturers. There could information technology (“IT”) systems that support the
be significant consequential damages resulting from the use of recognition of sales and cost of sales, ineffective business
or defects in such products. While ArcelorMittal has a limited process controls (automated and manual IT-dependent) due to
amount of product liability insurance coverage, a major claim for the dependency on such ITGCs, and other ineffective business
damages related to ArcelorMittal products sold and, as the case process controls supporting the recognition of sales and cost of
may be, advice given in connection with such products, could sales.
leave ArcelorMittal uninsured against a portion or the entirety of
Management and the Company’s Board of Directors are
such an award and materially harm its financial condition and
committed to maintaining a strong internal control environment.
future operating results.
Management, with the oversight of the Audit & Risk Committee
of the Board of Directors, evaluated the material weakness
identified as of December 31, 2023, and is implementing a
remediation plan to address the material weakness resulting

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from internal control deficiencies at the Company's Canadian blend of a COSO 2013, ISO 31000 and an in-house model.
subsidiary and enhance the Company’s control environment. Sites assess risks, including ESG and climate related risks, by
The remediation plan will enhance identification of IT assigning them a probability of occurrence, potential financial
applications relevant to internal control over financial reporting, impact and/or non-financial consequences. Global trends, and
appropriately implement and operate ITGCs and continue to the risks and opportunities identified as arising from them, are
train Company personnel and clearly communicate control used to inform the Company’s strategic outlook and planning.
responsibilities. The Company cannot be certain that the
measures it has taken, and expects to take, will be sufficient to Based on management reviews, reviews of the design and
correct the deficiencies identified to ensure that its internal implementation of the Company’s risk management approach
control over financial reporting is effective or that additional and business and functional risk committees, management
material weaknesses in the Company's internal control over provides an assessment each year, as required by law, of the
financial reporting will not be identified in the future. In addition, effectiveness of the Company’s risk management process.
while ArcelorMittal is taking steps to address these material
It should be noted, however, that the above does not imply that
weaknesses, any gaps or deficiencies in its internal control over
these systems and procedures provide certainty as to the
financing reporting may result in the Company being unable to
realization of operational and financial business objectives, nor
provide required financial information in a timely and reliable
can they prevent all misstatements, inaccuracies, errors, fraud
manner and/or incorrectly reporting financial information, which
and non-compliance with rules and regulations.
could reduce confidence in the Company's published
information, impact access to capital markets, impact the trading The Audit & Risk Committee assists the Board of Directors with
price of its securities or subject it to potential regulatory the oversight of risks to which the ArcelorMittal group is exposed
investigations and sanctions. Any of the foregoing could and in the monitoring and review of the risk-management
materially and adversely affect its business, results of framework and process.
operations and financial condition.
The Global Assurance Department facilitates the risk
Risk management process management process and provides support enabling business
Management is responsible for internal control in the Company as well as corporate functions to identify these risks and
and has implemented on an ongoing basis a robust short, opportunities to the business based on social, environmental,
medium and long-term risk – including ESG and climate-related regulatory, workforce, stakeholder, resource, technological and
risks – management and control system, which is designed to other trends, and specify mitigation actions. A consolidated
ensure its business is focused on achieving its objectives and report is shared on a half-yearly basis with the key stakeholders.
that significant risks are identified and mitigated. The system is
also designed to ensure compliance with relevant laws and With respect to climate, the work is coordinated by
regulations. ArcelorMittal’s executive officer for corporate business
optimization in consultation with segment CEOs; discussed on a
The Company’s risk management and internal control system is regular basis by the Group Management Committee; and
designed to determine risks in relation to the achievement of overseen by the Executive Office, which provides leadership
business objectives and appropriate risk responses. The and guidance. The Company’s climate strategy financial risks
establishment and maintenance of a risk identification and are brought to the attention of the Group Management
management process is the responsibility of site/segment/ Committee and where financially significant at a group level, are
corporate function management. Risks are owned and addressed at the Corporate Finance and Tax Committee.
monitored by management. Risk officers designated by Central to the Company's approach is its work to advocate for
management facilitate the conversations and help monitoring policy support strategy to ensure that ArcelorMittal can respond
the action plans. Critical risks are escalated through existing to rising carbon prices with viable investments in
reporting lines. Critical risk decisions are not dissociated from decarbonization technologies. At the same time, all of
the other decisions. Risks are analyzed by building models and ArcelorMittal's business segments are required to prepare
developing scenarios to understand potential financial impacts. carbon emission reduction plans to reach net zero by 2050 as
Short-term risks (within a 12-month time frame) are identified part of the annual planning cycle.
through a bottom-up process by respective management teams.
Risks are identified through a defined process by respective With respect to security, the Company has put in place means to
management teams. Business segments and corporate ensure the security of its people, assets and intellectual property
functions consolidate the identified risks and report the top ones by supporting business units on security governance, security
as part of the periodic reporting to key internal stakeholders. risk management, operational security, strategy and continuous
The Company uses a risk management framework based on a improvement. It develops and promotes security policies,

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procedures, tools and processes to support security process officers liability, transport, and charterers’ liability, as well as
owners with identifying and assessing security risks, related to other customary policies such as car insurance, travel
people, assets and intellectual property. It also identifies gaps, assistance and medical insurance.
and implements appropriate leading practice security controls to
promote more secure and resilient business environments. Operating subsidiaries of ArcelorMittal maintain various local
insurance policies, including policies that may be mandatory at
As regards risks relating to the security of information systems, the local level, such as employer liability, workers compensation
ArcelorMittal has developed governance and security rules and auto liability, as well as specific insurance such as public or
which describe the recommended organization, infrastructure pollution liability to comply with local regulations.
and operating procedures. These provisions are applied across
the Company under the responsibility of the business segments. In addition, ArcelorMittal maintains trade credit insurance on
The Group Chief Information Security Office defines cyber receivables from selected customers, subject to limits that it
security policies available and applicable for all segments/units believes are consistent with those in the industry, in order to
globally and develops general directives in cyber security protect it against the risk of non-payment due to customers’
reflecting mission, goals and values of ArcelorMittal. The cyber insolvency or other causes. Not all of ArcelorMittal’s customers
security policy focuses on protecting information systems are or can be insured, and even when insurance is available, it
against disclosure to unauthorized users (confidentiality), may not fully cover the exposure.
improper modification (integrity) and non-access when required
ArcelorMittal believes that its insurance coverage is in line with
(availability). In addition, cyber maturity assessments are
industry practice and sufficient to cover normal risks in its
performed annually in many business units and supplemented
operations. Notwithstanding the insurance coverage that
by in-depth cyber audits and penetration testing exercises
ArcelorMittal and its subsidiaries carry, the occurrence of an
performed by Global Assurance. For more detailed information
event that causes losses in excess of limits specified under the
regarding the Company's cybersecurity risk management and
relevant policy, or losses arising from events not covered by
strategy, see "Cybersecurity" below.
insurance policies, could materially harm ArcelorMittal’s financial
Regarding risks relating to changes in the regulatory condition and future operating results.
environment and business ethics, the Legal, Compliance &
Internal control procedures
Company Secretary Department ("LCCSD") reporting to the
ArcelorMittal's internal control framework is based on the
Chief Financial Officer establishes the Company's legal policy. It
Committee of Sponsoring Organizations of the Treadway
provides effective advice to assist in identification and
Commission ("COSO") 2013. It includes the following five
monitoring of legal, regulatory and governance risks. The
components: control environment, risk assessment, control
LCCSD is supported by regional and segment general counsels
activity, information and communication and monitoring
located across the business, who are further supported by unit
activities.
or country general counsels. The Compliance structure is
headed by Group Compliance and the Data Protection Officer ArcelorMittal's internal controls aim to provide reasonable
who report to Group Head of Legal. The Group Compliance and assurance but not absolute assurance because of the inherent
Data Protection Officer is supported by a Corporate Compliance limitations around effectiveness and efficiency of business
team and a Group-wide compliance network. operations, reliability of financial information, compliance with
laws and regulations and compliance with policies and
Insurance
procedures. The organization of ArcelorMittal's internal control is
ArcelorMittal maintains insurance policies to cover physical loss
aligned with group organization following which business
or damage to its property and equipment on a reinstatement
segments and operational entities are directly accountable for
basis arising from a number of specified risks, including certain
establishing and maintaining effective and adequate internal
natural disasters, such as earthquakes, floods or windstorms,
controls and procedures that conform to the regulatory
acts of terrorism and certain consequential losses, including
framework. The principles of control fit into the framework of the
business interruption arising from the occurrence of an insured
rules of corporate governance. In particular, these rules task the
event under the said policies.
Audit & Risk Committee with monitoring the effectiveness of the
ArcelorMittal also purchases worldwide third-party public and internal control and risk management systems and of the
product liability insurance coverage for all of its subsidiaries. internal audit, particularly as regards the procedures for
preparing and dealing with accounting, financial and non-
Various other types of insurance are also maintained, such as financial reporting.
comprehensive construction and contractor insurance for its
greenfield and major capital expenditures projects, directors and

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 Management report

Control environment internal audit and its Code of Ethics. The audit plan, which is
ArcelorMittal's control environment is primarily based on its risk based, is submitted annually to the Audit & Risk Committee.
Code of Business Conduct and supported by a comprehensive The Global Assurance department presents its results to the
framework of policies and procedures in areas such as human management of operational entities and business segments and
rights, anti-corruption and insider dealing. These documents reports to the Audit & Risk Committee, Executive Office and
reflect the principles and concepts of the UN Global Compact, Group CFO.
the OECD Guidelines on Multinational Enterprises and UN
Sustainable Development Goal 16: peace, justice and strong The design and effectiveness of the key operational, financial
institutions. The Company’s Code of Business Conduct defines and information technology controls related to internal control
what acting with integrity means in practice. It applies to all over financial reporting, are regularly examined and assessed in
directors, officers and employees of ArcelorMittal worldwide. To compliance with the Sarbanes-Oxley Act.
maintain knowledge about the Code of Business Conduct and
Cybersecurity
other aspects of compliance, employees take part in training
Risk management and strategy
programs based on a matrix system covering economic
The Group Chief Information Security Officer and Head of Cyber
sanctions, prevention of corruption, insider dealing regulation,
Strategy (“CISO”) follows the Group risk management program
fraud awareness and prevention, anti-trust issues, human rights,
as defined by the Global Assurance team in the management of
data protection and the Code of Business Conduct every three
risks relating to the security of information systems. For further
years.
information on the Global Assurance team, see “Corporate
The Board of Directors, with the support of its Committees, governance—Sustainability committee—Global Assurance”. The
ensures that internal control functions operate properly. The CISO is an experienced Information Technology/Operation
Audit & Risk Committee monitors the effectiveness of internal Technology strategist. He has many years of experience in IT
control and risk management systems implemented by the and the cybersecurity field, has been with the Group for the last
Board of Directors and management. As part of its role to foster 2 years and was earlier at AMNS India (previously ESIL) for
open communication, the Audit & Risk Committee meets at least over 19 years heading various functions including CIO of that
annually with management, the head of Global Assurance and entity for 8 years. He holds a bachelor’s degree in electrical
the Company’s independent accountants in separate executive engineering from Sardar Vallabhbhai National Institute of
sessions to discuss any matters that the Audit & Risk Committee Technology in India and a masters in business administration
or each of these persons believe should be discussed privately. from the Dayalbagh Educational Institute in India.
Management's responsibility is to ensure that the organizational
On a quarterly basis, the Group CISO provides a cybersecurity
structure plans, executes, controls and periodically assesses the
risk report to the Group’s Audit & Risk Committee based on risks
Company's activities. It regularly reviews the relevance of the
identified at the segment level, which in turn reports to and
organizational structures so as to be in a position to adapt them
assists the Board of Directors in fulfilling its oversight
swiftly to changes in the activities and in the environment in
responsibilities with respect to legal and regulatory
which they are carried out. The business segments' and
requirements, including cybersecurity. Risks identified in the
operational entities' management are responsible for the internal
report are considered potential risks that may affect all functions
control and risk management system within their scope of
and departments across the Group. The office of the CISO has
responsibility.
identified the following four key risk areas:
ArcelorMittal has defined responsibilities that cover the three
1. Large-scale cyber-attacks or malware causing
dimensions of internal control: operational management, which
economic damage and/or reputational harm to
is responsible for implementing internal control, support
ArcelorMittal.
functions such as Finance, Legal, Treasury or Human
Resources, which prescribe the internal control systems, verify 2. Dependency risks and increased vulnerability to
their implementation and effectiveness and assist operational outages of critical systems (applications or
employees, and Global Assurance who, through their audit infrastructure) causing significant disruption to
reports, provide recommendations to improve the effectiveness ArcelorMittal.
of the systems. 3. Adverse consequences of technological advances
such as Artificial Intelligence (“AI”), cloud-based
Following a risk-based approach, business processes and/ or programs or systems, Internet of Things (“IoT”) and
management systems may be the subject of an internal audit Blockchain which may cause harm to ArcelorMittal.
performed by the Global Assurance Department reporting to
4. Wrongful exploitation of personal information causing
both the Audit & Risk Committee Chair and the Group Executive
regulatory liabilities (e.g., GDPR or similar laws) or of
Chairman in accordance with the international framework of the
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 Management report

business data causing contractual or other legal Group CISO. BitSight also reports ArcelorMittal’s risk profile to
liabilities (e.g., relating to IP, R&D or customers) that Glass-Lewis for purposes of investor reporting.
would have significant impacts on ArcelorMittal.
The office of the CISO has put in place an extensive online
As part of the risk management process, the Group’s local IT
dashboard that tracks various metrics related to cybersecurity
teams and segment CISOs also identify local cyber risks and
risks across various operating units. Such measures include:
report to local risk committees.
1. BitSight External Cyber Ratings and Risk Factors
The office of the CISO defines policies and procedures related
to cyber and information security as well as to permissible and 2. AntiMalware compliance levels
secure uses of cloud, operational technology (“OT”) and IoT 3. Active Directory security posture
within the Company. ArcelorMittal follows the National Institute 4. Cloud Security cyber score and framework adoption
of Standards and Technology Cybersecurity Framework ("NIST
5. Ransomware Exploitable Vulnerability remediation
CSF"). The Group’s cybersecurity policies focus on protecting
status
information systems against disclosure to unauthorized users
(confidentiality), improper modification (integrity) and non- 6. Externally Facing Web Application Vulnerability levels
access when required (availability). These polices are 7. Cyber Awareness Education and Training
implemented across the Group and tracked and reported on a 8. OS Level and Patching posture
quarterly basis. Additionally, the Company has in place a global
9. Mobile security compliance
incident and crisis process with special procedures for
ransomware and data privacy (e.g., to increase protection and 10. Security Baselines (IT and OT) quarterly assessments
address breaches). Most Group entities undergo periodic 11. Expired user account risk
security penetration testing exercises led by the ArcelorMittal 12. Cyber attack simulation effectiveness
Global Assurance team or external third parties throughout the
year. Cyber Related Events in 2023
In 2023, ArcelorMittal did not experience any cyber-attacks,
The Company engages a wide range of third parties as part of cybersecurity threats or other information security incidents that
the implementation and operationalization of its cybersecurity materially affected or were reasonably likely to materially affect
policies, cyber defense strategies and general cyber risk the Company’s business strategy, results of operations or
management, including specialist assessors, security financial condition. Several instances of malicious activity were
consultants, IT auditors, forensic analysts, malware analysts detected on certain of the Company’s servers and systems,
and other third-party specialists. All third-party security providers including in Spain, Brazil, Germany and Venezuela. In each
that handle Company data or otherwise have access to case, the Company deployed defenses against these attacks
ArcelorMittal’s network and systems are required to complete a and conducted forensic analysis in coordination with third-party
rigorous risk assessment program in an online platform, which providers in order to successfully prevent the exfiltration of data,
includes checks for data and cloud security, access, incident contain or neutralize the ransomware from spreading to
reporting and physical protection in accordance with the NIST additional sites or servers and recover data from backup
CSF as well as applicable Company cybersecurity policies. servers. The Company also installed additional technologies
and software with the goal of ensuring the affected systems
In addition, Cyber Maturity Assessments are performed annually
were clear of any continuing threats. See "Risk factors and
by an external consultant across many entities and segments for
control—ArcelorMittal’s reputation and business could be
both IT and OT. Assessments are evidence-based exercises
materially harmed as a result of data breaches, data theft,
focusing on many key cyber processes, such as Vulnerability
unauthorized access or successful hacking”.
and Incident Management, Patching and Change Management,
Malware Protection, Network Monitoring, Business Continuity Governance
and Disaster Recovery, and Software Security. Global ArcelorMittal implements a distributed organizational model. At
Assurance also performs in-depth cyber reviews, audits and the Group level, the Group CISO defines the global
penetration tests at least once annually. cybersecurity strategy and roadmap.

ArcelorMittal has been a long-standing customer of the BitSight The global cybersecurity strategy and roadmap is informed by
rating service and has defined specific target levels and KPIs for the ArcelorMittal Security Incident Classification and Escalation
cybersecurity in the BitSight platform. These risk measures are Procedures as well as the ArcelorMittal Cyber Crisis
monitored daily and reported quarterly to the Data Protection Management Procedures (collectively, the “Cybersecurity
Committee, led by the Group Data Protection Officer with Procedures”). The Cybersecurity Procedures define the core
representation from Group Compliance, Group HR and the
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 Management report

principles of security risk management and the procedures for the Group’s Data Privacy Officer, meets quarterly to
security management, including the roles and responsibilities of review any incidents or risks involving data privacy
key personnel, strategy and measures to cope with information matters, and its recommended actions are
security breaches and related communication procedures. implemented across the Group.

Every cybersecurity occurrence or threat that rises to a specific • the Cyber Expert Committee (“EC”) led by the CISO
level defined in the Cybersecurity Procedures is reviewed in the and made up of various subject matter experts and
various security councils set out below and communicated to the segment security officers, works as a centralized team
appropriate committees as defined in the Cybersecurity to address common global issues and risks,
Procedures. Any such cyber incident is promptly reported by the recommend technologies and risk solutions across the
Group CISO to (a) the Audit & Risk Committee, which in turn Group and prepare technical security proposals to be
reports to the Board, in order to initiate the prescribed remedial reviewed by CS Leadership and approved and adopted
measures and (b) the Group CFO and Disclosure Committee for by the CIO Council.
decision-making regarding external communication to regulators • the IT Security Council and OT Security Council
or investors. operating across the Group and comprised of security
leads from each segment for their respective areas (IT
In fulfilling its oversight responsibilities, the Board oversees or OT), as well as from Global Assurance are used for
cyber risks and incidents via the Audit & Risk Committee and purposes of information sharing, feedback sessions for
approves proposals or modifications to the Cybersecurity the CS Leadership Group and sounding boards for new
Procedures. The Audit & Risk Committee relies on information proposals coming from CS or EC.
provided from Global Assurance, to which the Group CFO
provides information about risks. The Group CFO provides BUSINESS OVERVIEW
information to both the Audit & Risk Committee and the Group
CEO. Business strategy
ArcelorMittal’s success is built on its core values of safety,
The following teams are organized under and report to the sustainability, quality and leadership and the entrepreneurial
Group CISO: boldness that has empowered its emergence as the first truly
global steel and mining company. Acknowledging that a
• the Group Chief Information Officer (“CIO”) Council
combination of structural issues and macroeconomic conditions
(headed by the Group CISO and made up of segment
will continue to challenge returns in its sector, the Company has
CIOs and other specialists) leads and manages the
adapted its footprint to the new demand realities, intensified its
different business segments, which are responsible for
efforts to control costs and repositioned its operations to
the implementation and management of security
outperform its competitors. The Company also continues to
controls, processes and technology within their
develop and implement plans aimed at decarbonizing its steel
respective business segments.
and mining assets in a competitive manner and achieving
• the Group Cybersecurity (“CS”) Leadership team led by carbon neutrality by 2050.
the Group CISO and consisting of security officers from
each segment, is responsible for decision-making Against this backdrop, ArcelorMittal's strategy is to leverage four
relating to all security topics, defining roadmaps and distinctive attributes in aiming to capture leading positions in the
execution of strategies and protection within their most attractive areas of the steel industry value chain, from
respective segments. mining at one end to distribution and first-stage processing at
the other:
• the Global Ransomware Crisis Committee made up of
various heads of leadership functions such as Legal, • Global scale and scope
IT, Treasury, Communication, Investor Relations and
• Unmatched technical capabilities
Global Assurance, with the assistance of a third-party
service provider acting as the Company’s ransomware • Diverse portfolio of steel and related businesses,
negotiator and advising partner, is responsible for particularly mining
advancing and implementing the decision-making • Financial capability.
processes in the event of a ransomware outbreak
Three themes
across the Company and any demands for ransom
payments. Steel. ArcelorMittal looks to expand its leadership role in
• the Data Protection Committee consisting of Group attractive markets and segments by leveraging the Company’s
Compliance, Group HR and Group CISO, and led by technical capabilities and its global scale and scope. These are
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 Management report

critical differentiators for sophisticated customers that value the improvement through measures such as benchmarking and
distinctive technical and service capabilities the Company offers. best-practice sharing. Innovation in products and processes also
Such customers are typically found in the automotive, energy, plays an important role while supporting overall
infrastructure and a number of smaller markets where competitiveness. In addition, pursuant to the Company's July
ArcelorMittal is a market leader. In addition, the Company is 2021 announcement to target a global reduction of 25% in
present in, and will further develop, attractive steel businesses carbon emissions intensity (both scope 1 and 2) by 2030, the
that benefit from favorable market structures or geographies. In Group is progressing on various pathways to competitively
developing attractive steel businesses, ArcelorMittal’s goal is to reduce carbon emissions across its asset base.
be the supplier of choice by anticipating customers’
requirements and exceeding their expectations. It will invest to Five key strategic enablers
develop and grow these businesses and enhance its ability to Critical to implementing this strategy are five key enablers:
serve its customers. Given the volatile nature of the industry,
A clear license to operate. Many of ArcelorMittal's businesses
these investments will be highly disciplined, leveraging
are located in regions that are in the early stages of economic
advanced project management capabilities, balancing financial
development. Practically all are resource-intensive. The
and sustainable considerations with targeted strategic
Company recognizes that it has an obligation to act responsibly
opportunities. Commodity steel markets will inevitably remain an
towards all stakeholders. ArcelorMittal's commitment to
important part of ArcelorMittal’s steel portfolio. Here, a lean cost
sustainability and safety is outlined below. See "Business
structure should limit the downside in weak markets while
overview—Sustainable development" and Government
allowing the Company to capture the upside in strong markets.
regulations—Health and safety laws and regulations".
Finally, ArcelorMittal is developing a strategic response to the
Sustainability and safety are core values that underly
challenges and opportunities posed by decarbonization, which it
ArcelorMittal's efforts to be both the world’s safest steel and
believes will fundamentally change the market structure of the
mining company and a responsible environmental steward.
steel industry.
A strong balance sheet. The Company maintains a strong
Mining. ArcelorMittal is working to continue to create value from
balance sheet with credit metrics consistent with investment
its world-class mining business. Mining forms part of the steel
grade credit rating. This provides a strong foundation for its
value chain but typically enjoys a number of structural
balanced capital allocation: to invest in organic growth,
advantages, such as a steeper cost curve. The Company's
consistently reward shareholders, and maintain the flexibility, on
strategy is to create value from its most significant assets,
a selective basis, to pursue acquisitive growth opportunities.
through selective expansion and de-bottlenecking, by controlling
cost and capital expenditure, and by supplying products that are A decentralized organizational structure. ArcelorMittal's scale
highly valued by steel producers. ArcelorMittal's financial and scope are defining characteristics that give it a competitive
capability has allowed it to continue to invest in key mining advantage. They also introduce complexity and the risks of
assets (in particular AMMC as well as ArcelorMittal Liberia and inefficiency, bureaucracy and diffuse accountability. To manage
Serra Azul), while the diversity of its steel and mining portfolio these risks, the Company favors a structure in which the
facilitates the ability of the mining business to optimize the value responsibility for profit and loss is focused on business units
of its products in the steelmaking process. The Company's aligned with markets.
mining business aspires to be the supplier of choice for a
balanced mix of both internal and external customers, while at Active portfolio management. Throughout the Company's
the same time providing a natural hedge against market volatility history, it has sought to grow and strengthen the business
for its steel operations. The mining business should also support through acquisitions. That remains the case. The acquisition of
the decarbonization of the steel footprint through optimization of existing assets and businesses is typically seen as a more
mining product mix by supplying raw materials needed for the attractive growth path than greenfield investment. The Company
low emissions footprints. is, however, also willing to dispose of businesses that cannot
meet its performance standards or that have more value to
All operations. ArcelorMittal strives to achieve best-in-class others.
competitiveness. Operational excellence, including health and
safety, the number one priority, is at the core of the Company's The best talent. ArcelorMittal's success will depend on the
strategy in both steel and mining. The Company steadily quality of its people, and its ability to engage, motivate and
optimizes its asset base to ensure it is achieving high operating reward them. As detailed below, the Company is committed to
rates with its best assets. Its technical capabilities and the investing in its people and ensuring a strong leadership pipeline.
diversity of its portfolio of businesses underpin a strong See "Management and Employees—Employees—Employee
commitment to institutional learning and continuous

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 Management report

development". It will continue to improve its processes to attract, center for the lifecycle of products, processes and services. It
develop and retain the best talent. identifies and develops complex modelling to support
sustainable transitions, including GHG emissions, biodiversity,
Research and development water use and social aspects.
The Company’s Global Research and Development ("R&D" or
"Global R&D") division provides the technical foundation for the ArcelorMittal’s R&D strategy focuses on six main pillars:
sustainability and commercial success of the Company by
Maintaining the competitiveness of the Company’s steel
stimulating innovative thinking and the continuous improvement
among its unique automotive customer base.
of products and processes.
R&D continually drives innovation that enables the Company’s
ArcelorMittal believes it possesses leading R&D capabilities strategic focus on higher-added-value products. A key focus
among steel producers and is committed to maintaining and area is products designed to meet the complex and changing
extending this advantage by anticipating and responding to needs of the automotive industry.
major technological, sustainability and social trends, while also
ArcelorMittal continuously develops its S-in motion® range of
making a significant contribution towards achieving the
solutions, which showcases the benefits of AHSS grades and
Company’s 10 Sustainable Development Outcomes (see “—
manufacturing processes. These projects assist automotive
Sustainable development” below).
customers in meeting demanding targets for fuel economy, and
To support this commitment, the Company operates 14 research thereby drive improvements in CO2 emissions.
sites in 9 countries around the world, including a new German
Currently, S-in motion® projects focus on BEVs with solutions
based R&D unit which started activities during 2022. In 2023,
for B-Segment SUV, C-Segment and mid-size SUV to address
ArcelorMittal’s R&D expense was $299 million (compared to
specific needs of local markets. A deeper focus on BEV is
$286 million and $270 million in 2022 and 2021, respectively).
needed to, amongst others on a shorter front module, protect
In addition, the Company capitalized $26 million of research and batteries against impact due to accidents, lowering the center of
development expenses in 2023 (compared to $28 million in gravity and the additional weight due to batteries. These
2022). specificities require rethinking crash management. The S-in
Motion® BEV catalogue of steel solutions is adapted to this new
Among its R&D initiatives, ArcelorMittal has developed over 15 type of vehicle. Advanced and especially ultra-high strength
years of expertise and tripled its resources in Life Cycle steels, innovative press hardened steels, and laser welded
Assessment ("LCA"), which analyzes the environmental impact blanks are especially highlighted as key solutions for an optimal
of products during their production, use and disposal. In 2023, performance (safety/weight) and battery safety. The growth of
the Company undertook a total of 63 LCA studies related to various types of electric vehicles will impact design and
steel products and the processes used to produce them, all manufacturing. As an example, both the battery box and body
guided by the relevant standards (ISO 14040-44). structure must protect the battery in the event of a crash. AHSS
products are among the most affordable solutions on the market
The Company’s expertise in LCA is an important asset in all of for these specific applications. In a context where the supply of
its global markets. For example, LCA is a requirement of electric vehicles, and especially BEVs, are expected to grow
Environmental Product Declarations ("EPD") for construction quickly.
products in Europe, Brazil and North America, and contributes to
increasing the Company’s competitiveness in the construction The S-in Motion® Multi Part Integration® project was recently
sector. For automotive solutions, LCA studies are conducted on released where new and innovative solutions are being rolled
components of vehicles for improved environmental out to address the expected simplification of car manufacturers.
performance and sustainable supply chains with customers. On top of further reducing weight, the new solutions offer
concepts to simplify operations by reducing the amount of
ArcelorMittal's product improvements with regards to their robots needed by reducing the shop floor size and cutting the
environmental impact and information are facilitated by hours of labor per vehicle in the assembly shop by up to 30%.
collecting data from all sites for upstream and downstream These achievements are made possible by the combination of
activities including energy use. These evaluations are updated extra-large laser welded blanks and the new generation of Press
and reviewed on an annual basis, facilitating LCA at product Hardening steels Usibor® 2000 and Ductibor® 1000.
level.
As far as product development is concerned, several new
In 2022, ArcelorMittal renewed its support for the CIRAIG products have been commercialized, including in particular
International Consortium on Lifecycle by committing to a new additional martensitic grades and multiphase MP grades which
five-year mandate. The consortium is an international reference
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 Management report

are now in ArcelorMittal’s catalogue. In addition to these product received the Sustainable Development certificate for its steel
developments, a number of XCarb® RRP products have been solutions in packaging, an award that recognizes
developed while utilizing the Company's existing EAF environmentally friendly alternatives to plastics.
production route.
Construction equipment, agricultural machinery, and heavy
Creating a robust and diverse portfolio of niche non- transportation is another important segment for which a full
automotive steel products to serve customers across range of Ultra-High-Strength steels has been developed. These
multiple sectors. Amstrong® steels allow customers to lightweight their
Customers in many sectors share the automotive industry’s equipment, increase payload and reduce fuel consumption and
demand for innovative products and processes. The Company CO2 emissions. Dimensional range for the Amstrong 700MCT
aims to deliver similar breakthrough advances in these sectors family has been extended towards thinner and thicker gauges,
by creating differentiated products and unique engineering making these products unique on the market. In addition, the
solutions, all designed to ensure that steel is the customer's Company's Amstrong 960MCL High Elongation is being
material of choice. developed with customers, targeting light weight machinery, with
higher grades targeted for the future.
ArcelorMittal is fully involved in the development of solutions
dedicated to the Global Energy Transition. The Company has ArcelorMittal is committed to sustainable development,
developed and patented corrosion resistant steels for use in continuously striving to reduce greenhouse gases in the
wind towers or solar mounting systems. Notably, Magnelis® construction industry. An important component of this work is to
advanced coating combined with Hyper® high strength steels improve products as to enable designers to reduce the tonnage
has become a material of choice for light weight solar structures. of material required for buildings, while simultaneously ensuring
high reuse and recycling at the end-of-life.
Extension of the solutions to heavy coating weights (ZM800)
has been industrialized over a large range of sizes (thin & thick In addition to ArcelorMittal's roadmap to decarbonize steel
gauges), and even heavier weights are in the trial phase. These making, other initiatives are in progress to lower CO2 emissions
solar steel solutions are being deployed globally in Europe, of products for construction by acting on downstream
North and South America and Asia. Additionally, the Company is processes. As an example, a new generation of color-coated
working on the development of solutions suitable for the steels has been developed at industrial scale based on solvent-
hydrogen economy, electricity grids, carbon capture, storage & free technology using Electron Beam curing; this is the first
use and bioenergy. Hymatch® steel offer is being developed in industrial production line in the world.
order to provide steel grades suitable for H2-linepipes.
The tied-arch bridge, as an example, is a design used
Furthermore, a complete range of low-CO2 steels has been extensively in the past, but which has undergone considerable
developed, known as XCarb® RRP steels, aimed at applications transformation as not to be only functioning as a bridge, but also
in the renewable energy segment, notably S355J2 heavy plates as an aesthetic landmark. Tied-arch bridges are also more cost
for wind towers and Magnelis® coated structural steels for solar efficient than other solutions (e.g. cable stayed bridges), when
mounting systems or heat pumps. The production of these considering the span range. The use of structural heavy shapes
products, while utilizing a renewable electricity and employing as arches for a span range of between 50 and 120 meters has
high recycled scrap content, allows for a reduction in carbon been a recent innovation for tied-arch bridges. The use of high-
footprint by up to 65%. strength steel for the arches permits significant weight savings,
and therefore lower environmental impact.
Packaging is, in the Company’s view, another important
opportunity. ArcelorMittal continues to respond to the need to In 2023, R&D launched 14 new products and solutions to
meet evolving health and safety regulations, to achieve accelerate sustainable lifestyles, while also progressing further
lightweight, cost-saving design, and to develop new on 15 such product development programs.
functionalities. Chromium-free passivation for tinplate has been
fully industrialized with multiple applications and as per In addition, in 2023, R&D launched 24 products and solutions to
customer quality requirements. High strength and thin gauge support sustainable construction, infrastructure and energy
steels have been developed for Easy Open End, twist-off caps, generation, while also progressing further on 16 such product
and aerosol lightweight applications. BPANI (Bisphenol A non- development programs.
intent) lacquered steel for aerosol valves has been successfully
Fully capitalizing on the capacity of Steligence® - a holistic
developed and introduced to the market. The Company's platform for environmentally-friendly, cost-effective
innovation efforts were recognized at the Aerosol & Dispensing construction - to create higher-added-value products and
Forum in Paris in January 2023. At this forum, ArcelorMittal

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 Management report

solutions for the construction market is being deployed in a civil construction (e.g. roads and asphalt), a fertilizer source for
variety of markets. agriculture and new innovative applications like ballast in
Construction is one of the key sectors for ArcelorMittal. The offshore wind turbine foundations to replace natural ballast; a
Company’s R&D effort is focused on providing higher-added construction material for building protection walls to reduce
value products that meet customer needs, including their noise and dust; and the potential re-use of slag from furnaces in
sustainable development objectives. water filtration and greenhouse gas capture. The Company also
recycles most dust and sludges internally. With the help of an
Steligence® highlights the innovations the Company’s steel has
EU-funded project that started in 2020, R&D is working on
to offer in the design and performance of a building, and to
agglomeration solutions that are expected to enable further use
support its customers in their use of its products. Steligence®
of these materials as alternatives to currently used raw
adds value through its holistic approach of helping specialists in
materials. In 2023, tests at laboratory scale were successfully
the architectural and engineering disciplines to meet the
validated to meet industrial requirements for valorization in the
increasing demand for sustainability, flexibility, creativity and
blast furnace. In 2024, industrial trials will be conducted to
cost in high-performance building design by harnessing the
validate their industrial feasibility.
credentials of steel through its potential for recyclability and the
reduction of materials used. ArcelorMittal is developing the new valorization routes of the
steel by-products (dust, sludges, scale, slags) in the new
A key concept within Steligence® is to make buildings easier to
decarbonization steel making routes, with goals of 100%
assemble and dismantle. As a result, buildings become quicker
efficient use of raw materials, zero waste and increased
to construct, leading to significant efficiencies and cost savings
availability of the critical minerals needed for the green
while also creating the potential for re-use. This reflects
transformation. In 2023, R&D simulated several footprint
ArcelorMittal’s wider interest in modularization and the potential
scenarios characterizing future steel by-products quality. Based
re-use of steel components - a field it is discussing with
on this information, in 2024, the Company will continue to
customers and in its LCA assessments.
investigate applications of these by-products and treatments to
Due to XCarb® RRP, the Company is able to offer steel improve their quality.
produced with a CO2 footprint as low as 0.33 tonne of CO2 per
Other circular economy initiatives include working on the use of
tonne for sections and 0.37 tonne of CO2 per tonne for merchant
mining tailings as a secondary raw material, either by finding
bars, i.e. EcoSheetPile™ Plus brand. With these two EPDs, the
marketable solutions or generating valuable products to be used
Company is capable of supporting the construction industry to
in-house and in construction. Development of other applications
meet tougher requirements to reduce the carbon footprint of
for utilizing high grade silica tailings in the chemical industry are
buildings and infrastructure.
ongoing.
Developing breakthrough process innovations to deliver
Other developments include improving the quality of the scrap
cost reduction, sustainability benefits to meet current and
the Company uses, as well as exploring automated sorting
emerging environmental challenges, and new product
processes for treating scrap.
development.
The creation of unique processes creates value for the Improvement in air, land, water. Work in this area includes
Company and its stakeholders by increasingly enabling research in technology for cleaning fumes from stacks, reducing
environmental improvements, including carbon reductions and dust diffusive emissions, cleaning water discharges, and solving
improvements in air, land and water; promoting process-driven water scarcity issues. ArcelorMittal is working to transform its
product development and enhancing the performance of existing facilities and steel making production to create more
operations through cost efficiency and improved product quality. efficient technologies to reduce air pollution, make more efficient
use of the water and develop new steel making routes to be
Process improvements contribute decisively to the future of the
carbon neutral and near zero emissions. In 2023, R&D
Company, both helping to preserve its license to operate and
completed the algorithm calculation tool of PM diffuse dust
ensuring its financial sustainability through important
emissions based on internationally recognized calculation
management gains.
methodologies and emission factors derived from measurement
By-products and circular economy. Work in this area includes within the Group. Algorithm tools were deployed at all
the re-use of slag as a valuable product for many applications, ArcelorMittal plants. In 2024, plants will start using these tools
which reduces waste while avoiding the ecosystem disruption and R&D will continue to enhance calculations and develop new
that can result from the extraction of other materials such as techniques to identify, track and mitigate dust emissions
natural stone or sand. For example, the Company is making (including diffuse sources and chimney sources).
innovative re-use of slag in the following applications: cement,
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 Management report

Progress against air pollution. In 2022, for the first time, Technologies specifically related to hydrogen burners, induction
ArcelorMittal implemented an extensive sensor monitoring heating and electrical resistance heating are being tested,
network at Tubarão. In 2023, the Company used advanced including in laboratory pilots and testing installations to
artificial intelligence ("AI") tools to analyze all the data captured determine the impact on steel products.
by the sensors to have a better understanding of emission
sources and factors that can have an impact both on generation In 2023, solutions were industrialized to reduce natural gas
and mitigation of meteorological conditions. consumption through models to reduce energy needs and the
replacement of natural gas with steelmaking gases. In 2024,
Advanced sensors are used and algorithms tested to calculate R&D will continue with the development of solutions to reduce
the accuracy of measurements in monitoring areas adapting natural gas consumption, replacing it with steelmaking gases
them to industrial conditions. Particular advances are being and testing burners capable of replacing 70-90% of natural gas
made in detection through laser and AI-powered video with blast furnace gas, reducing the NOx emissions by 50%.
surveillance with the ultimate goal of defining what emissions
are being released, in what volumes, from where and with what Process research and development for Products differentiation:
trajectory and diffusion, so that they can be stopped, removed or • Electrical steels: R&D contributed to the strong
mitigated. In 2023, the technology was tested in four of the progress in reliability and quality at the Company's
Company's plants as a step to deploying tailored solutions Saint-Chély (France) electrical steel plant while
across ArcelorMittal's operations. ArcelorMittal intends to supporting the new investment in Mardyck (France).
continue progressing in the industrialization of advanced
• Optigal® and Magnelis® metallic coatings were rolled
filtration technologies to reduce stack emissions and gases such
out at Avilés and Montataire sites and will be rolled out
as NOx, SOx, etc.
next at Swietocholowice. Process adaptations have
ArcelorMittal’s large and global footprint will require several been made to support the ramp-up of chrome-free
decarbonization technologies in the short, medium and long passivation.
term. R&D's role is to help generate sustainable differential • Progress was made in developing a new generation of
intellectual property solutions in these domains, to accelerate HSS products. Support full industrialization of Cr-free
decarbonization while preserving the Company’s product quality passivation in some of our tinplate assets.
and cost competitiveness. In 2023, R&D continued developing
Process research and developments for products quality: In
the H2 DRI-EAF based steel production route. Progress was
2023, the Global Product Quality System ("GPQS") solution was
made both in the DRI modelling (energy and mass balance
running on 45 lines and has received several improvements.
when using hydrogen for reduction) and the behavior of
The deployment of five additional lines began in 2023.
hydrogen DRI pellets in the EAF. Tools for better control and
management of scrap were also developed. In 2023, the Mining Process Improvement: In order to assist with the
SIDERWIN funded project was concluded and the Company decarbonization of the Group, the Mining segment and Global
launched the next phase for future industrialization, R&D are investing significantly in the decarbonization of pellets
VOLTERON™. In this regard, ArcelorMittal signed an production. By reducing the temperature of pellets curing, and
agreement with John Cockerill in June 2023 to develop an therefore modifying the pelletizing process, CO2 emissions from
industrial scale low temperature, iron electrolysis plant (see the mining business will be drastically reduced. These strategic
"Introduction—Sustainable development highlights - striving to developments are structured in programs such as cold bounded
be a leader in the decarbonization of the steel industry"). products, in other words pellets, briquettes and extruded
Another important activity in 2023 has been the analysis of the products, which are further complemented by the development
Company's technology roadmap for decarbonization of the blast of new energy sources for the pelletizing process such as
furnace. In 2023, R&D reinforced activities in the Carbon hydrogen and biomass.
Capture and CO2 transformation domains. Several proofs of
concepts are being done at the Company's R&D labs such as In addition, during 2023 as in the previous year, Global R&D
SEKISUI and CASOH publicly funded projects. participated in the expansion of a risk assessment for all
ArcelorMittal tailings facilities worldwide. ArcelorMittal's
R&D continues supporting ArcelorMittal’s three decarbonization dedication to safety and environment is further reinforced with
paths for primary activities:
the creation of programs for supporting ArcelorMittal Mining in
In 2023, ArcelorMittal has continued working on the
mine closure strategy. R&D is also developing its own
decarbonization of finishing operations and has launched
surveillance platform to monitor in real time conditions and the
several research initiatives to prepare for future industrial
impact on planned activities regarding safety and audits at the
investments focusing on reheating and annealing furnaces
Company's tailings dams.
which are the main sources of CO2 emissions in finishing.
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 Management report

With respect to the expansion of the Company's mining • Manufacturing digitalization (Production, Quality and
operations in Liberia, Global R&D has also been critical in Maintenance); and
providing modifications that allowed higher recovery rates,
• Business digitalization (Procurement, Commercial,
reduction of tailings volume and keeping the high-grade
Supply Chain, Strategy, Finance).
concentrate. In 2022, Global R&D started developing the dry
stacking tailings program for the project which continues, in The Global platforms are a key element both from a technical
compliance with the Company's tailings management standard. and organizational standpoint, providing a standard approach to
data infrastructure as a platform, where cloud capacity, open-
Fully capitalizing on opportunities from the digital source technologies and commercial solutions have been
economy. engineered to build a standard distributed data ecosystem. In a
ArcelorMittal envisages itself as a fully digital enterprise where company of ArcelorMittal's size, having a common and standard
everything is connected. ArcelorMittal invested early and governance is of paramount importance when dealing with
significantly in automation systems, and for decades the distributed and decentralized data.
Company has been a pioneer in the introduction and use of
artificial neural networks. ArcelorMittal is currently fully In its digital strategy, the Company makes use of solutions that
committed to a total digital transformation and is progressively are directly acquired in the market (digital commodities),
becoming a data-driven company, including significant advances solutions that are co-developed with technology suppliers, and
in a number of fields and relies on the secure and reliable solutions that are fully developed internally to take advantage of
performance of its digital technology platforms, information the rich knowledge interfaces the Company has (process,
technology systems, continuously updating its security product, AI, math optimization). This combination leads to
measures to avoid data breaches or data theft (see also algorithms with performance superiority to what is available in
"Introduction—Risk factors and control—ArcelorMittal’s the market for the Company's core business and is thoroughly
reputation and business could be materially harmed as a result benchmarked.
of data breaches, data theft, unauthorized access or successful
The main driver for digitalization at ArcelorMittal is a competitive
hacking.").
advantage, with new technologies and especially developing
In 2023, in addition to internal awards, Global R&D received cutting-edge AI and mathematical optimization algorithms.
several external recognitions in the AI domain:
In 2023, the Company has continued with significant advances
• National Computer Engineering Award by the Spanish aligned with its digital plan and strategy, including the following
Association of Computer Engineers. highlights:

• On top of several R&D engineers teaching in different • Complete design and development of ArcelorMittal
universities, two of the Company's R&D Leaders were Primary Portal, single entry point to access many of the
invited to provide guest lecturers at Columbia Business Company's primary facilities for process supervision
School on Digital Disruption and Digital Transformation and action recommendation. In addition to blast
changing the perception of the steel industry and how furnaces, ArcelorMittal successfully connected the first
much technology and AI is involved. DRI facilities.
• ArcelorMittal's Global R&D Chief Digital Officer has • New advanced models for scrap management aligned
been awarded as Engineer of the Year in Asturias – with the Company's decarbonization efforts:
Spain.
◦ Multi-plant data-driven machine learning models to
• Global R&D has been selected as one of the 20 mitigate the impact of scrap residuals on the
companies in the world to assess GPT Science Engine quality of several high added value products.
with one of the software giants as a result of previous
◦ Scrap density monitoring models for systematic
collaborations.
inspection and control of scrap deliveries, e.g.
The Company is focusing its efforts on: quality, quantity, density have been implemented
in North European operations.
• Data-driven culture, establishing a product-thinking
approach to data; ◦ Automatic scrap classification at reception. The
first version has been online since July 2023 at the
• Continuous evolution of the Global platforms (Cloud,
Dunkirk plant.
Edge, Collaborative Digital Product Development);
• An increased number of decision-based tasks for
ArcelorMittal's workforce are made by AI algorithms
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 Management report

improving results and efficiency. As an example, the providing an agile and scalable way of solving problems in ways
GPQS, in-house development widely implemented at that were not possible before.
the Company has been extended to electrical steels
and implemented in Saint-Chély, ready for future Seizing the potential of additive manufacturing. ArcelorMittal
implementations for these kind of products and expects significant potential in additive manufacturing ("AdM")
markets. The underlying technology transitioned to full and 3D printing. In the first quarter of 2024, following the
machine learning in a pilot plant and will be further strategy to become a key player in AdM, ArcelorMittal will
updated in all the Company's units to achieve commission an atomizer with a large batch-size production
enhanced performance. capacity, to be able to supply significant volumes of steel
powders (1000T/year) at the required quality levels. This is done
• Global R&D has invested time and effort in mastering by leveraging internal know-how developed by R&D and was
new mathematical techniques combined with AI to launched to industrialize and commercialize these
better deal with uncertainty management. The developments through ArcelorMittal Powders.
Company has enlarged the application of these
techniques beyond the first successful case on R&D, taking advantage of its extensive knowledge of metallurgy
strategic raw material inventory, the second to better of steels, has been working to create a portfolio of unique
predict electricity consumption peaks in a geographical powders. R&D can support its customers in the right use of the
area reducing operating costs while controlling risk, Company's powders at every step of the value chain of additive
now being implemented for optimal scrap loading into manufacturing: selecting and customizing material, design of
the Company's EAFs dealing with uncertainty of parts and printing optimization.
residuals in the scraps
In parallel to powders, R&D is progressing in the wires AdM
• ArcelorMittal's web sales platforms now offer additional
domain, highlighting the successful printing of high-quality large
material available for immediate purchase and short
parts by DED (Direct Energy Deposition) technology.
lead-time. This has been very well received by
Remarkable progress in printing productivity and surface quality
customers in Europe who already interact with the new
has been achieved in 2023. ArcelorMittal wants to be a leader in
system without any human intervention, while the
both powders and wires supply for AdM.
Company is deploying the system to additional regions.
Together with ArcelorMittal’s commercial workforce, the
R&D division has developed additional specific Sustainable development
algorithms and recommendation systems that are Sustainability governance
implemented in new IT commercial platforms adding The Company’s governance structure relating to sustainability is
value to ArcelorMittal's customers, who are also based around the following supervisory bodies:
increasing the digital nature of their activities and ways
of doing business. The 3 Board of Directors Committees:

• The Company, through the transformation of its Global • Audit and Risk Committee
R&D division, started to adopt the new Collaborative
• Appointments, Remuneration and Corporate
Digital Product Development platform for the design of
Governance Committee ("ARCG Committee") and
new steel products much faster. Several of the AI and
• Sustainability Committee.
mathematical techniques are being used as well to
speed up the development of new powders to serve Management Committees and Panels: Management Committee,
the Company's new Business Unit delivering metal Corporate Finance and Tax Committee ("CFTC"), Investment
powders for the Additive Manufacturing Industry – Allocation Committee ("IAC"), Global Health and Safety
ArcelorMittal Powders. Committee, Climate Change Panel, Sustainable Development
Panel, and Group Diversity and Inclusion Panel.
While the implementation of large-scale digital and industry 4.0
projects is challenging in a company of ArcelorMittal’s size, once The Board of Directors Committees
implemented these projects bring major benefits and value For a comprehensive description of the structure and
because of the Company’s scale and global footprint. responsibilities of the Audit and Risk Committee, ARCG
Committee and Sustainability Committee, please refer to
ArcelorMittal’s approach is to work with a broad range of
"Management and employees—Corporate governance—Board
entities, thus maximizing the knowledge transference into its
of Directors committees".
capabilities. This has led to the development of new algorithms
using internal expert knowledge, cloud and edge capabilities

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 Management report

Management Committees and Panels relevant corporate functions and key operations across the
Management Committee Group. It guides engagement and advocacy with external
The Management Committee comprises senior managers with stakeholders on climate change and decarbonization and
responsibility for various business divisions and functions in supports the business in understanding the risks and
ArcelorMittal. For more information see the ArcelorMittal's opportunities associated with the transition to a low carbon
Internet site at www.arcelormittal.com. economy. The CCP meets on a nominally quarterly basis. Key
issues identified by the CCP are raised with the Executive Office
Corporate Finance and Tax Committee ("CFTC") and recommended topics are brought forward for discussion
The CFTC defines the principles for the ArcelorMittal finance and action with the Group Management Committee.
community and presents and supports financial and business
solutions for the ArcelorMittal Group by providing the expertise, Sustainable Development Panel ("SDP")
excellence in execution and stability for continuous, sustainable The purpose of the SDP is to discuss and coordinate the
and competitive development of the Group while developing and Company's approach to environmental and social issues. It
promoting its people. The responsibilities of the CFTC extend consists of senior managers from relevant corporate functions
across all finance and tax activities in the Group and are not and key operations across the Group It guides engagement on
limited only to activities at corporate level. The CFTC is chaired issues relating to double materiality, stakeholder engagement,
by the CFO and Executive Vice President, Mr. Genuino compliance and performance on environmental (non-climate),
Christino, and has main responsibilities covering treasury, human rights and social performance issues. The SDP meets
funding, taxation, accounting and performance management, on a nominally quarterly basis. The Panel is chaired by Mr.
SOX and insurance. James Streater, General Manager Sustainable Development.

Investment Allocations Committee ("IAC") Sustainability outcomes

It is chaired by Mr. Aditya Mittal, CEO of ArcelorMittal. The IAC ArcelorMittal’s 10 Sustainability Development (SD) outcomes
authorizes large capital expenditure projects, including those articulate the priorities the Company believes it needs to pursue
designed to deliver safety, carbon and environmental if it is to bring optimal long-term value to all its stakeholders and
improvements, and reviews the carbon emissions impact of all drive its transformation into the steel company of the future.
proposals. Committee members include the CFO, Mr. Genuino They are aligned with the 17 United Nations Sustainable
Christino; Executive Vice President and head of corporate Development Goals ("SDGs"), widely regarded as the
business optimization, Mr. Brad Davey (vice-chairman of IAC), benchmark in global sustainability policy and action.
Chief Technology Officer ("CTO"), Mr. Pinakin Chaubal; and
Vice President Head of Corporate Strategy, Mr. David Clarke. ArcelorMittal's 10 SD Outcomes
1 Safe, healthy, quality working lives for ArcelorMittal’s people
Global Health and Safety Committee ("GHSC")
2 Products that accelerate more sustainable lifestyles
The GHSC is responsible for overseeing the Group's health and
safety governance. It is an executive level committee chaired by 3 Products that create sustainable infrastructure

Mr. Robin Paulmier, General Manager Head of Health and 4 Efficient use of resources and high recycling rates
Safety and member of the Group Management Committee. The 5 Trusted user of air, land and water
GHSC is responsible for the development of a Group-wide 6 Responsible energy user that helps create a lower-carbon future
safety plan, implementing the recently updated safety policy, 7 Supply chains that ArcelorMittal’s customers trust
identifying safety gaps across the Group, sharing best practice;
8 Active and welcomed member of the community
preparing detailed action plans to ensure quality and
9 A pipeline of talented scientists and engineers for tomorrow
consistency in the application of safety measures, including
pairing high-performing sites with those that need more help. It 10 ArcelorMittal’s contribution to society measured, shared and valued
also ensures the achievement of minimum requirements for in-
house safety training and carrying out close follow-up on leading Materiality
Key Performance Indicators ("KPIs") to ensure ongoing The starting point for the Company’s sustainability reporting and
improvement. planning is to assess the issues that are most material in their
impacts for external and internal stakeholders, against the
Climate Change Panel ("CCP") issues seen by the Company as having the most actual or
The CCP discusses and coordinates ArcelorMittal’s approach potential impact on its business and value. This allows the
and response to climate change. The CCP is chaired by Mrs. Company to identify priority issues to address and those that are
Nicola Davidson, Vice President Communications and increasing or decreasing in importance. It provides the basis for
Sustainable Development, and a member of the Group the Company's sustainability planning and programs and serves
Management Committee. It consists of senior managers from as a benchmark to assess progress.
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 Management report

The Company undertook its materiality assessment process in numerous investor and customer surveys, the Company
2021, using a ‘double materiality’ approach. The issues are published several country sustainability reports.
grouped under the three core pillars of People, Planet and
The Company periodically publishes the results of its
Products & Supply Chain. Within these pillars are eight themes:
engagements through its climate advocacy reports on
People ArcelorMittal’s website.

• Safety: the physical safety of ArcelorMittal employees The Company also released its Report on Payments to
Governments in Respect of Extractive Activities for the year
• Work and life: the health and fulfillment of the
ended December 31, 2022.
Company's employees
• Gender: the equal representation, development and The Company publishes a special disclosure report in
remuneration of women compliance with the US Dodd Frank Act Section 1502 and has
been working to meet the requirements of the EU's conflict
• Community: the approval of the Company's
minerals regulation.
communities and its perception as a welcome member
of the community Health and Safety
Planet 61 colleagues lost their lives in accidents at the Company’s
operations in 2023. 46 of these fatalities happened in October
• Climate: the extent to which the Company strives to 2023, when a devastating explosion occurred at ArcelorMittal’s
play a leading role in the steel sector’s competitive Kostenko mine in Kazakhstan. The Company, its employees
decarbonization, and the drive to a more stable and local communities in Kazakhstan have been devastated by
climate/reduction in global warming/Paris Agreement this loss, and made every effort to support the affected
• Nature: acting as a steward of air, land, water, employees and families. Subsequent to this tragic incident,
biodiversity and ecosystems ArcelorMittal completed the sale of ArcelorMittal Temirtau to the
Qazaqstan Investment Corporation (‘QIC’) but the tragedy
Products and supply chain
emphasized the urgency of intensifying all efforts to become a
• Products: the value of ArcelorMittal products to a low fundamentally safer company. As such ArcelorMittal has
carbon, circular economy commissioned a comprehensive independent audit of its safety
policies and practices worldwide which was launched in
• Customer reassurance: supply chains that are
December 2023.
responsible and that meet customer expectations
A new double materiality assessment following CSRD guidance It is expected that the audit will be completed by September
will be undertaken in the first quarter of 2024. 2024 and the key recommendations will be published externally
as the Company recognizes the significant interest its
Reporting stakeholders have in ensuring that ArcelorMittal improves safety
The Company is committed to reporting on its governance, performance across the Group. The Company is completely
strategy, risks and performance relating to each of its material committed and focused on accelerating and intensifying all
issues in its key publications including the Integrated Annual aspects of its safety improvement program and while the
Review ("IAR"), the annual report on Form 20-F, its Climate Company expects the audit to make several recommendations
Action Reports and Annual Reports. in this regard it is already taking steps to close any gaps.
Climate Action Reports in particular serve as ArcelorMittal’s Safety strategy – focus on safety culture and risk management
response to the recommendations of the Task Force on Climate- In 2022, in seeking to improve its safety performance, the
Related Financial Disclosures ("TCFD") as well as the Climate Company developed and implemented a new safety strategy
Action 100 Net Zero benchmark, for which the Company is based on the twin pillars of changing the safety culture within
working towards full disclosure. In 2023, the Company has the Group and changing its approach to risk management. The
continued to assess the resilience of the business against strategy involves moving from what has, in its most challenged
different transition and physical climate scenarios, so that it can locations, been a ‘find-and-fix’ culture to a ‘predict-and-prevent’
consider the potential financial implications in more detail, culture, where the working practices and assessment of risk
inform its strategy and manage its transition and physical identify and mitigate potentially harmful events before they
climate risk exposure. happen. It has been recognized that proactively identifying and
removing potential hazard events can enable far safer outcomes
In 2023, alongside making disclosures to the Carbon Disclosure
and performance; and the Company has therefore been
Project ("CDP") on climate change and water, and conducting
transitioning to use the identification of Potential Serious Injury

46
 Management report

and Fatality events ("PSIFs") as its key safety KPI in the place • In depth assessments of all health and safety systems,
of the more reactive KPI of Lost Time Injury Frequency Rate processes, structures and capabilities; governance and
("LTIFR"). assurance processes; and systems and data
management.
ArcelorMittal’s health and safety policy, standards and lifesaving
golden rules were refreshed and implemented across the Group The audit is expected to take up to nine months with the main
in 2022 and 2023. Key elements of the policy are as follows: recommendations to be published in September 2024.

• Placing more focus on the role management must play Leaders have been required to demonstrate more progress in
while at the same time reinforcing how all employees safety culture maturity, with greater mandatory leadership shop
need to be actively involved in health and safety floor presence.
management.
The Company has intensified training/coaching programs,
• Making clear that working safely is a condition of including with external support, to improve the quality of
employment for everybody at ArcelorMittal. leadership’s safety routines (i.e. shop floor interactions) as well
• Explicitly stating that everyone is empowered to take as increased cross training to benchmark and align best
action and stop work if they see a situation which they practices.
deem to be unsafe.
There has been an intense emphasis on Fatality Prevention
• Stressing the need to report and analyze all incidents, Standards ("FPS") with a particular focus on the highest-risk
so that employees and management learn from them circumstances that have been responsible previously for the
across the Company. most fatalities. FPS will now be externally audited.
• Highlighting the role effective systems management
The Company has also enforced a quarantining across the
and sharing of best practices has in driving continuous
Group, whereby the occurrence of PSIFs injuries trigger a
improvements.
quarantining process, requiring management’s shop floor
In April 2023, the Company launched a Group-wide safety presence to be doubled, a detailed assessment and response to
perception survey, led by independent consultants DSS+, a the event, and an increase in the number of management shop
leading provider of sustainable operations management floor interactions.
consulting services, covering 220,000 personnel and contractors
across the Group, and assessing all operations against the Risk control and mitigation strategies
safety culture maturity model (known as the Bradley Curve) – Risks and risk events vary across the Group according to the
leading to bespoke action plans and strategies for the different nature of local operations, assets and working culture. The
parts of the business. Company is working closely with DSS+ to better understand the
interaction of risks arising from behavior, working with
Alongside the publication of its third quarter financial results on machinery and from asset integrity, in terms of their respective
November 9, 2023, the Company said it would commission a contributions to serious injuries and fatalities, so that it can
comprehensive independent third-party safety audit of its develop better controls and mitigation actions.
operations to identify gaps and strengthen its safety actions,
processes and culture to help prevent serious accidents. On Currently, aside from the gas explosion incidents in Kazakhstan,
December 22, 2023, ArcelorMittal announced that it engaged the top three more typical causes of fatalities within the Group,
DSS+ to conduct a group-wide audit of its safety practices. Few representing 54% of fatal events (2017-2023) include:
firms have the capabilities to carry out work of this complexity • Crushed or rolled by vehicle
and scale, and the appointment was made following a • Crushed by moving machinery or other mobile
competitive tender process, on the basis of DSS+’s deep equipment
domain expertise and its ability to operate across the full • Falling from height
breadth of ArcelorMittal’s international footprint, which
comprises over 350 sites. Work has started immediately and will
comprise, inter alia:

• Comprehensive Fatality Prevention Standards audits

for the three main occupational risks leading to serious
injuries and fatalities.
• Expert input into the Company’s planned CTO-led
process risk management safety audits of its highest
priority countries and assets.
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 Management report

Top causes of fatality Measures to address these performance. Working with the external safety consultant, the
2017-2023 Company conducted pilot studies at selected plants where their
1 Crushed or rolled by Focus on proactive PSIF detection, personnel are assisting and coaching management and teams
vehicle strengthening the effectiveness of
controls as part of the Company’s risk for periods of six months, and then these sessions are repeated
management, modification and update across all relevant personnel.
of the FPS relating to vehicles and
driving, mandatory alarms for safety
belts and parking brakes, mandatory These programs, comprising highly focused on-the-job
proximity detectors for specified coaching, cover integrated risk and culture governance,
industrial vehicles, and improved
procedures relating to wheel and tire management accountability, shop floor interactions, effective
maintenance.
implementation of the FPs and other management routines
fundamental to improve safety performance. These are
2 Crushed by moving Focus on proactive PSIF detection, supported through the developed leading KPIs.
machinery or other mobile focus on isolation FPS, strengthening
equipment the effectiveness of controls as part of
the risk management, review of the Performance in 2023
global Hazard Identification and Risk 57 of the 61 fatalities in 2023 were in the CIS region. The
Assessment (HIRA) tool on an annual
basis, with adaptation at site level for intensive efforts that have been made to improve safety
local conditions and mandatory ‘Stop, performance across the Group have not delivered the progress
Think & Act’ measures and
implementing control measures before for which the Company had hoped.
any unusual/nonstandard task or job.
The Group’s steel operations (excluding CIS) were fatality-free
3 Fall from height Focus on proactive PSIF detection, amongst its own employees in 2023, and reported a fatality
strengthening the effectiveness of the
controls as part of risk management, frequency rate (FFR) of 0.010 that is 50 per cent lower than the
modification and update of FPS relating record level achieved by the World Steel Association in 2022.
to working at height, strengthening
requirements for roofing activities, LTIFR was at 0.92 (0.70 excluding Kazakhstan) compared with
integrating learning points from related
fatalities, and integrating fatality 0.70 in 2022 (0.68 excluding Kazakhstan). NAFTA and Mining
prevention requirements for dock. have reached lowest ever levels of LTIFR in 2023, 0.22 and
Reinforced rules on fixed ladders,
banned rope ladders, and aligned rules 0.10 respectively.
related to floor installation and repairs
at the same level as the ones In the context of the business’ new focus on PSIFs as a key
concerning roof repairs
leading indicator, the Company detected and treated proactively
(before anyone being injured) 12,820 of these events in 2023, a
122% increase as compared to 2022, which demonstrates that
The updated safety policy places a renewed emphasis on
more risk precursors are being identified and correspondingly
addressing these top three causes of fatalities. Specific
measures are being put in place to minimize or mitigate their
mitigation measures are being put in place to minimize these
potential impacts.
events occurring. These include machine upgrades, asset
integrity improvements and tailored training and coaching. Also,
during 2023, sites have reassessed themselves against the
FPSs related to the top risks. They will build or strengthen on-
field training with certification on the top risks. FPS will now be
externally audited.

Intensified coaching and training program

The Company has been rolling out intensive training and
coaching programs in the regions with poorer safety

For the year ended December 31 LTIFR 2022 LTIFR 2023 Fatalities 2022 Fatalities 2023 PSIFs 2022 PSIFs 2023
Mining 0.84 0.10 2.00 0.00 12.06 13.17
NAFTA 0.25 0.22 0.00 1.00 13.86 15.76
Brazil 0.10 0.26 1.00 0.00 18.19 22.02
Europe 1.11 1.30 2.00 2.00 14.02 15.28
ACIS 0.74 1.43 17.00 58.00 11.44 18.78
TOTAL 0.70 0.92 22.00 61.00 12.76 16.64

48
 Management report

Strengthened governance and scrutiny towards their implementation. Support will be required in the
Given its critical importance, governance of safety is overseen transition period, enabling the balancing of required capital
at the most senior level by the CEO of ArcelorMittal, supported spend against the longer-term returns. Due to this reason, the
by the Sustainability Committee. The latter reviews safety Company is asking for public funding support for around half of
performance on a quarterly basis, with additional safety focused its estimated $10 billion capital expenditure program to achieve
meetings scheduled between regular meetings as required. its 2030 Group target, as well as support for operating costs in
the short to medium term.
The Head of Corporate Health and Safety, who is also a
member of the Group Management Committee, reports to the In 2023, the Company made progress towards its 2030 target of
Executive Vice President, Head of Corporate Business reducing carbon emissions intensity by 35% in Europe and 25%
Optimization, who in turns reports to the CEO of ArcelorMittal. across the Company's steel and mining operations. Both targets
Further oversight of safety is provided by GHSC which shares cover Scope 1 and 2. Its biggest decarbonization projects, for
and promotes best practice and is chaired by the Head of DRI/EAF operations in Canada, Spain, France, Belgium and
Corporate Health and Safety. Germany, are progressing through FEED ("Front End
Engineering and Design") stages. During the first half of 2023,
ArcelorMittal business units CEOs, full leadership team and the Company received European Commission approval for the
safety departments manage and implement the Group's best funding of four of its projects in Spain, Hamburg, France and
practice procedures and standards at the local level. Further, Belgium. The Company welcomes the support to date, and is
ArcelorMittal has fully supported and initiated to have units engaging with the relevant country governments on energy
obtain external experts' help in closing any gaps in the Group's costs, and to provide clarity on the pathway towards green
safety performance. hydrogen that will enable these projects to move to the next
phase of development. More than 200 dedicated employees are
In line with the Group’s move to focus more on leading KPI
currently working intensively on decarbonization projects, and
indicators, the executive Short-Term Incentive Plan ("STIP")
the Company is investing considerably in both decarbonization
changed in June 2022 to be linked to the frequency of proactive
infrastructure and low carbon technologies.
PSIFs, and is not linked to the lagging KPI of LTIFR anymore.
The proportion of bonuses linked under this scheme to safety Developing technology that is capable of taking the industry to
was increased from 10% to 15% in 2021. Safety also represents net-zero
10% of the Long-Term Incentive Plan. The Company’s roadmap to achieving net-zero emissions by
2050 is based on the following sets of actions and initiatives that
Climate change and decarbonization
act as stepping-stones toward that goal:
Decarbonizing the global economy and adapting to the impacts
of climate change are at the heart of ArcelorMittal’s sustainable • Transforming the business’ steelmaking assets
development strategy. Aside from safety, climate is the
• Transforming the energy used in steelmaking and
Company’s most material sustainability issue, and the business
reducing and capturing carbon emissions
strives to be an industry leader in terms of target setting,
performance and disclosure. • Increasing the proportion of scrap used in the
steelmaking process
The Company is adopting a multi-faceted approach to • Investing in clean electricity
decarbonization, having developed a broad range of low-
• Offsetting residual emissions
emissions steelmaking technologies and is integrating them into
Innovative-DRI and Smart Carbon pathways, and direct
electrolysis of iron.

The Company has made considerable progress in developing

the two first more immediately viable routes, and is moving

49
 Management report

Transforming the business’ steelmaking assets

In order to achieve net-zero targets, the global steel industry is own facilities, acquiring facilities and developing partnerships
facing a significant transformation of its asset base and a and joint ventures with iron ore suppliers.
revolution in the technology used to make steel. These changes
ArcelorMittal is taking a pragmatic and considered approach to
include switching ironmaking from the traditional Blast Furnace-
transitioning away from its existing BF-BOF assets. Clearly,
Basic Oxygen Furnace ("BF-BOF") route to the DRI route, and
older assets which are near their end of life, with lower efficiency
from iron ore preparation in the sinter plant (using heat or
and higher emissions, are more conducive to replacement with
pressure to compact a material) to the pellet plant (which
new, lower carbon DRI-EAF facilities. However, the economic,
compresses or moulds the iron material into the shape of a
environmental and social policy circumstances are important
pellet). Ironmaking with pellets in the DRI is usually coupled with
factors in taking these decisions for each significant site and set
an EAF where pellets are molten with scrap. These changes
of assets. Where BF-BOF assets still have a significant useful
also include using best in class technology with the potential for
life or the policy environment is not conducive, the Company is
carbon capture and utilization ("CCU") or carbon storage
to ensure that any new blast furnaces are using best in class
techniques ("CCS").
technology with the potential for CCU or CCS.
High gas prices have previously limited the adoption of DRI-EAF
The Company is accelerating its DRI-EAF investments through
operations, but with the increasing cost of carbon and the
the following projects:
requirement to reduce emissions, moving to natural-gas based
DRI-EAF is being seen as a first step with a proven technology Hamilton, Canada
that will transition to using green hydrogen as this technology On October 13, 2022, ArcelorMittal together with the
matures and availability of green hydrogen develops. governments of Canada and Ontario, broke ground on its
investment decarbonization project at the ArcelorMittal Dofasco
Part of this transition will require access to high quality ore-
plant in Hamilton, Ontario, Canada. The governments of
based metallics. ArcelorMittal is pursuing this objective through
Canada and Ontario have committed CAD$400 million and
the development of DRI-ready pellet plants and DRI modules,
CAD$500 million, respectively, to the overall project cost. The
including HBI, and is assessing options including building its
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project includes a 2.5 million tonnes per year capacity DRI signing of a contract with industrial engineering company
furnace will initially operate on natural gas but will be Sarralle to build a new EAF in Gijón for the Longs business.
constructed ‘hydrogen ready’ so it can transition to green New DRI and EAF installations in Gijón will reduce carbon
hydrogen when a sufficient and cost-effective supply becomes emissions at the Company’s Spanish operations by
available and one EAF. The new manufacturing processes will approximately 50%. Around 1 million tonnes per year of DRI
contribute to a considerable reduction of CO2 emissions and would be supplied to Sestao to be used as feedstock for the
deliver other positive environmental impacts including the plant’s two EAFs.
elimination of emissions and flaring from coke making and
ironmaking operations. Hamburg H2 project, Germany
In Germany, ArcelorMittal already operates Europe’s only DRI-
ArcelorMittal Canada, Contrecoeur EAF plant in Hamburg. The Company is planning to test the
ArcelorMittal’s existing DRI plant in Quebec produces 1.7 million ability of hydrogen DRI on an industrial scale, as well as testing
tonnes of DRI each year. In 2022, the Company successfully carbon-free DRI in the EAF steelmaking process. The European
tested the use of green hydrogen in the production of DRI. The Commission approved €55 million of funding support from the
objective of the test was to assess the ability to replace the use German Federal Government towards the plant’s construction,
of natural gas with green hydrogen in the iron ore reduction which is half of the estimated €110 million total capital
process. The green hydrogen used in the test was produced by expenditure required.
a third-party owned electrolyzer (device that produces green
hydrogen from electricity and water) and was then transported Bremen and Eisenhüttenstadt, Germany
to Contrecoeur. This is a major step forward since the iron ore ArcelorMittal is developing a project to build a large-scale
reduction process alone contributes to more than 75% of industrial plant for the DRI based steelmaking at its site in
ArcelorMittal Long Products Canada ("AMLPC") overall CO2 Bremen, as well as EAFs in Bremen and in Eisenhüttenstadt,
emissions. AMLPC is evaluating the possibility of carrying out following the announcement of the planned expansion of
further tests by increasing the use of green hydrogen at the DRI Germany’s hydrogen infrastructure and alongside its existing H2
plant, which could eventually reduce CO2 emissions in Hamburg project. In February 2024, the Company received the
Contrecoeur by several hundred thousand tonnes per year. The European Commission's approval of €1.3 billion in state aid.
potential use of electrolyzers to produce green hydrogen in
Dunkirk, France
Contrecoeur will depend on certain criteria, particularly the
ArcelorMittal intends to build a 2.5 million tonnes per year DRI
availability of sufficient electricity to power the units.
unit and two EAFs in Dunkirk. On July 20, 2023, approval of
ArcelorMittal Texas HBI, USA €850 million in state aid for this project was received from the
In 2022, the Company secured high-quality metallic feedstock European Commission.
and purchased a majority shareholding in a world-class HBI
A letter of intent was signed in January, 2024 with French state-
plant in Texas. HBI is a high-quality feedstock made through the
owned energy supplier EDF Energy for the long-term supply of
direct reduction of iron ore which is used to produce high-quality
low-carbon electricity to ArcelorMittal French steelmaking sites
steel grades in an EAF, but which can also be used in blast
in Dunkirk and Fos-sur-Mer. See "Introduction—Sustainable
furnaces, resulting in lower coke consumption.
development highlights - striving to be a leader in the
Across Europe ArcelorMittal has a range of decarbonization decarbonization of the steel industry".
projects it is pursuing. During 2023 and early 2024, the
ArcelorMittal and quarried materials group SigmaRoc have
European Commission approval for funding was received for
entered into a strategic joint venture agreement to create a new
several of these projects, which is a positive development. The
company that will produce lime, an essential purifying additive
Company continues to progress the pre-engineering and design
used in steel production as well as numerous other industrial
work across these projects as it seeks to secure the additional
applications. This joint venture will produce 900,000 tonnes a
conditions required to take these investments to final investment
year of a high-quality material reusing heat recovered from
decision. This includes the availability of low-carbon energy.
ArcelorMittal plant in Dunkirk and using biofuels to replace the
These projects include
use of natural gas in the production process. This should allow a
Gijón and Sestao, Spain significant reduction of CO2 emissions, allowing the Company to
ArcelorMittal is planning to invest €1 billion in the Company's offer net-zero lime. The operations will be located close to
plant in Gijón including the construction of a 2.3 million-tonne Dunkirk’s harbor and the ArcelorMittal steelworks, who will be
hydrogen DRI plant. In February 2023, the Company received the main consumer of the lime produced. Its strategic location
the European Commission's approval of €450 million in state aid will allow the joint venture to be a part of Dunkirk’s CO2 hub.
for the DRI plant. This was followed in November 2023 with the
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Ghent, Belgium will gradually close off any remaining net emissions from these
ArcelorMittal Belgium is developing plans for a 2.5 million cycles.
tonnes per year DRI plant and 2 EAF facilities at its Ghent site.
The DRI plant and EAF facilities would operate alongside The Company is constructing several commercial-scale projects
Ghent’s state-of-the-art blast furnace that is ready to take waste to test and prove a range of Smart Carbon technologies:
wood and plastic as a substitute for fossil carbon. On June 22,
Torero
2023, approval of €280 million in state aid for this project was
ArcelorMittal has built an industrial-scale demonstration plant
received from the European Commission see also "Sustainable
that converts waste wood into renewable energy through a
development highlights - striving to be a leader in the
process called torrefaction. This source of waste wood is
decarbonization of the steel industry".
considered hazardous material if burnt in an incinerator as it
ArcelorMittal has also started a feasibility study for the Ghent emits harmful gasses. However, in a blast furnace no such
Carbon Hub project in partnership with North Sea Port and pollutants can be formed. At the Ghent plant, two reactors will
energy infrastructure group Fluxys. The Ghent Carbon Hub will each produce 40,000 tonnes of bio-coal annually that can be
be an open- access hub to transport and liquefy CO2 from used in the blast furnace as a substitute for coal. Construction of
emitters, provide buffer storage and load the CO2 onto ships for the €55 million project started in 2018; the first reactor started
onward permanent storage. The project should have the production in 2023. The project is expected to reduce annual
capacity to process 6 million tonnes of CO2 a year – equivalent carbon emissions from the Ghent plant in Belgium by
to around 15% of Belgium’s industrial CO2 emissions. North Sea approximately 112,500 tonnes per year by reducing the use of
Port, a 60 kilometer long cross border port in Belgium and the coal in the blast furnace. The Torero industrial-scale
Netherlands, is home to a cluster of energy intensive industries demonstration plant will convert 88,000 tonnes of waste wood
with a significant CO2 footprint. In late 2022, the project was into 37,500 tonnes of bio-coal annually. The Torero project is
awarded a €9.6 million grant from the EU Commission’s supported by European funding from the European Union’s
Connecting Europe Facility for Energy (CEF-E) funding Horizon 2020 research and Innovation Framework Program.
program. Implementation of Carbalyst smart carbon technologies at
Ghent, when combined with two Torero reactors, is expected to
Transforming the energy used steelmaking and reducing achieve 0.3 million tonnes of CO2 savings per year.
and capturing carbon emissions
Considerable progress has been made in efficiency of energy Steelanol CCU plant
use in BF-BOF steelmaking in recent years. Innovations are In June 2023, the Company commenced ethanol production
continuing aimed particularly at reducing carbon emissions, from its CCU project at its steel plant in Ghent, Belgium, see
such as the use of coke oven gas in the tuyeres of the blast "Sustainable development highlights - striving to be a leader in
furnace and drawing on the rich hydrogen content of the gas. the decarbonization of the steel industry".
However, despite these advances, BF-BOF operations still rely
3D
heavily on fossil fuels, and as outlined above there are rapidly
A pilot project in Dunkirk aims to capture CO2 off-gases at a rate
growing pressures to shift steel production to cleaner forms of
of 0.5 metric tonnes of CO2 per hour for transport and storage.
energy. The three main alternative routes for making this shift
are: clean electricity (which could be in the form of green The process uses low temperature heat available across the
hydrogen); continued use of fossil carbon coupled with CCU and plant to separate CO2 from other off-gases from the blast
CCS to remove carbon emissions; and use of circular carbon furnace to create a pure low-pressure CO2 gas stream suitable
either through natural or synthetic carbon cycles. Such use of for internal reuse or piping for storage. This process could
renewable energy technology is broadly referred to as Smart significantly lower CO2 capture costs versus alternative
Carbon. technologies. Regional infrastructure would be requested for all
local industrial companies in order to optimize usage and
Natural carbon cycles include use of sustainable forestry and efficiency of the solution. Parametric tests have been performed.
agriculture residues, to produce bioenergy. Emissions from use Steady operation with high capture rates has been
of this bioenergy will be captured by the regrowth of biomass in demonstrated. Project continues with detailed long-term test run
forestry and agriculture creating a closed circle, ideally with associated with gas analysis along 2024.
limited or no carbon ‘leakage’. Synthetic carbon cycles rely on
the use of waste plastics as an energy source, transforming the This carbon capture technology has the potential to be adopted
carbon in waste gases through CCU into equivalent new across the business’ blast furnace footprint, but scaling will be
plastics, and similarly aiming to ensure that there are limited or highly dependent on development of CO2 transport and storage
no emissions. It is hoped that new technology and innovations infrastructure in the regions where the Company operates. It is

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already actively engaged in carbon transport and storage at carbon emissions is expected to be achieved through a
several locations in Europe and exploring the possibility in other reduction in the energy required during the pelletizing process.
regions. Deployment of the 3D technology will be linked to the
development of CO2 pipeline infrastructure, as well as ArcelorMittal Liberia is exploring opportunities to reduce its GHG
emissions by switching from largely diesel power to the new
deployment of CO2 re-use technologies in the Company's blast
West African ‘green power grid’.
furnaces.
ArcelorMittal Mining will also act as an enabler for ArcelorMittal’s
MHIENG carbon capture collaboration
current steelmaking transition from blast furnace processes to
ArcelorMittal, Mitsubishi Heavy Industries Engineering
cleaner DRI-based EAF processes by increasing the ratio of
(MHIENG), a pioneer in carbon capture technology, leading
DRI pellet production capacity.
global resources company, BHP, along with Mitsubishi
Development Pty Ltd are collaborating on a multi-year trial of Increasing the proportion of scrap in the steelmaking
MHIENG’s carbon capture technology with ArcelorMittal, process
following the signing of a funding agreement between the In addition to using scrap in EAF operations, the business can
parties. The companies will also conduct a feasibility and design increase the use of low-quality scrap in the BF-BOF steelmaking
study to investigate the commercial application of MHIENG’s process by improving steel scrap sorting and classification,
technology in separating and capturing CO2 top gas from the installing scrap pre-melting technology and adjusting the
Ghent blast furnace. steelmaking process to accommodate scrap. It is expected that
scrap availability globally will increase as the amount of steel in
Partnering with SEKISUI CHEMICAL
circulation increases, thereby demonstrating the inherent
On June 19, 2023, ArcelorMittal and SEKISUI CHEMICAL
circularity of steel. The acquisition of John Lawrie in Scotland
announced that their carbon recycling project achieved target
and Alba International Recycling in Germany in 2022 and Riwald
ahead of schedule See "Sustainable development highlights -
Recycling in the Netherlands in 2023 are good examples of how
striving to be a leader in the decarbonization of the steel
the Company is working to increase its access to scrap steel to
industry".
lower its carbon emissions from steelmaking.
Direct electrolysis
Investing in clean electricity
The Company is also making considerable progress in
Reducing the business’ Scope 2 emissions means mainly
commercializing direct electrolysis technology. In June 2023,
focusing on sourcing low-carbon electricity. This will be an
ArcelorMittal and John Cockerill announced plans to construct
increasing challenge as the Company launches projects to
the world's first industrial scale low temperature iron electrolysis
transition from BF-BOF technology to scrap and DRI-EAF
plant see "Sustainable development highlights - striving to be a
technology. This will result in electricity becoming a greater part
leader in the decarbonization of the steel industry".
of the energy mix it uses to make steel. The Company plans to
Carbon reduction through mining initiatives look for more and varied opportunities in the renewables sector
Along with steelmaking initiatives, the Company’s mining to provide sufficient access to clean electricity at affordable
operations are also developing different solutions to reduce prices, purchase renewable energy certificates and make more
GHG emissions. use of direct power purchase agreements ("PPA") with suppliers
from renewables projects.
AMMC in Canada continues to study and trial low-emissions
iron ore pellet production. In 2021, it announced a CAD$205 The $0.6 billion investment in the 975MW renewable energy
million investment with support from the Quebec government, project launched in 2022 between ArcelorMittal and Greenko
enabling AMMC to convert its entire 10 million tonnes per year Group combining solar and wind power and supported by
pellet production to DRI pellets by the end of 2025. It is Greenko's hydro pumped storage project, which helps to
expected to become one of the world’s largest producers of DRI overcome the intermittent nature of wind and solar power
pellets, the raw material feedstock for iron-making in a DRI generation, is an example of how the business can directly
furnace. The project includes the implementation of a flotation ensure increased availability of green electricity in India. The
system that is expected to enable a significant reduction of silica project is owned and funded by ArcelorMittal. AMNS India will
in the iron ore pellets, facilitating the production of very high- enter into a 25 year off-take agreement with ArcelorMittal to
quality pellets. It is also expected to deliver a direct annual purchase 250 MW of renewable electricity annually from the
carbon emissions reduction of approximately 200,000 tonnes at project, resulting in over 20% of the electricity requirement at
AMMC’s Port-Cartier pellet plant, equivalent to over 20% of the AMNS India’s Hazira plant coming from renewable sources,
pellet plant’s total annual carbon emissions. This reduction in reducing carbon emissions by approximately 1.5 million tonnes
per year. Over 50% of solar modules and 35% of wind turbines

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have been installed. The project commissioning is expected by ArcelorMittal’s reduced, low and near-zero carbon- emission
the first half of 2024. The Company is studying various options products and steelmaking activities, as well as wider initiatives
to develop subsequent phases to further increase renewable and green innovation projects, into a single effort focused on
electricity capacity in India. achieving demonstrable progress towards net-zero steel.

Separately, in May 2023, ArcelorMittal Brasil formed a joint The three XCarb® branded initiatives launched to date include:
venture partnership with Casa dos Ventos, one of Brazil’s XCarb® green steel certificates, XCarb® recycled and renewably
largest developers and producers of renewable energy projects, produced products and the XCarb® innovation fund (see below).
to develop a wind power project see "Sustainable development
highlights - striving to be a leader in the decarbonization of the XCarb® green steel certificates
steel industry". The Company’s progress in driving down emissions enables it to
pass the benefit of carbon emission reductions on to customers
The acquisition of CSP in March 2023 in Brazil brings several
for the first time via an independently audited certification
strategic benefits to ArcelorMittal, including the potential to
scheme.
capitalize on the significant planned third-party investment to
form a clean electricity and green hydrogen hub in Pecém. The The scheme provides for an independent auditor to verify the
Pecém Green Hydrogen Hub, a partnership between the Pecém metric tonnes of carbon savings achieved, in accordance with
Complex and Linde, is a large- scale green hydrogen project at the GHG Protocol Project Accounting standard. These savings
the Port of Pecém which is targeting to produce up to 5GW of can then be passed on to customers in the form of verified
renewable energy and 900 thousand tonnes per year of green certificates. Customers can use such certificates to report an
hydrogen in a series of phases. The first phase, which the equivalent reduction in their Scope 3 emissions.
partnership currently expects to be completed over the course of
the next five years, targets the construction of 100-150MW of XCarb® recycled and renewably produced
renewable energy capacity. XCarb® recycled and renewably produced ("RRP") products are
made via the EAF route using scrap steel and 100% renewable
Offsetting residual emissions energy. By using only scrap steel and renewable energy,
While ArcelorMittal aims ultimately to achieve net-zero carbon XCarb® RRP products have an extremely low CO2 footprint that
emissions from its operations, residual emissions may remain can be as low as approximately 300kg of CO2 per tonne of
for which either there will be no feasible technological solution, finished steel when the metallics are 100% scrap. The electricity
or the solution involves excessively high economic, used in the steelmaking process is independently verified so
environmental, or social costs. For these residual emissions, that it may obtain a ‘Guarantee of Origin’ that it is from
which the Company estimates will be 5-10% of existing renewable sources.
emissions, it plans to buy high-quality and high-integrity offsets
or develop projects to generate high-quality carbon credits that XCarb® innovation fund
would not have happened without the Company’s intervention. ArcelorMittal is committing considerable investment in
Given the justifiable criticism that many early offset schemes innovation in breakthrough decarbonization technologies,
have received, the business is working diligently on developing beyond its own R&D and strategic partnership activities. It is
its own voluntary carbon offset strategy, to ensure that it has undertaking this investment through the XCarb® Innovation
access to robust, credible and verifiable offsetting and to Fund and the XCarb® Accelerator programs.
develop a portfolio approach considering nature and technology-
based offsets. Through the ArcelorMittal XCarb® Innovation Fund, the
Company invests in companies developing technologies with
Whilst full mitigation of carbon emissions is the Company’s the potential to support and accelerate the transition to net-zero
overarching priority, some customers are interested in offering carbon steelmaking. Since the launch of this Fund in March
net-zero products currently while the technology still does not 2021, ArcelorMittal has committed to investments in seven
exist for the business to abate its emissions fully. In response to companies covering a range of decarbonization technologies –
such requests, the Company is investigating options to offset renewable energy, long-term battery storage, carbon capture
any remaining net emissions related to that product manufacture and re-use, hydrogen electrolysis, nuclear energy and direct
after it has reduced its emissions to the extent it can with electrolysis. This Fund is also an anchor partner in Bill Gates’
existing technology. The Company plans to document and Breakthrough Energy’s Catalyst program, having committed to
publicly disclose any such offsets should it proceed. invest $100 million over a five-year period.

Investing in low carbon solutions and innovative technologies CHAR technologies

The Company is committed to developing its proprietary CHAR Technologies was selected as the winner of the inaugural
strategic low carbon brand, XCarb®. It brings together all of XCarb® Accelerator Program, securing a $5 million investment
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through ArcelorMittal’s Xcarb® Innovation Fund. Based in Breakthrough Energy’s efforts include investment vehicles,
Ontario, Canada, CHAR is developing a high temperature philanthropic programs, policy advocacy, and other initiatives,
pyrolysis ("HTP") technology that transforms organic waste including Catalyst. Catalyst is a new model for how companies,
streams into one of two valuable energy outputs: a high-calorific governments, and private philanthropy can finance, produce,
value and hydrogen-rich syngas that can be used as a and ensure widespread adoption of next-generation clean
replacement for natural gas or to make green hydrogen; and technologies. The program will initially focus on four
biocarbon, made from the remaining solids after the HTP decarbonization technologies: direct air capture, green
process which can be used as a biochar fertilizer to improve soil hydrogen, long-duration energy storage and sustainable aviation
health, a pollutant filter or as biocarbon to replace fossil coal in fuel.
industrial processes.
LanzaTech-Carbon recycling
ArcelorMittal’s Canadian flat steel operation, ArcelorMittal In 2021, the Company announced an expansion of its
Dofasco, has been collaborating with CHAR to test the use of its partnership with carbon recycling company, LanzaTech, with a
biocarbon as a partial replacement for fossil coal in its $30 million investment. In June 2023, the Company commenced
steelmaking processes, with encouraging results. CHAR’s ethanol production from its flagship CCU project at its steel plant
biocarbon enables an approximate 91% reduction in GHG in Ghent, Belgium.
compared to metallurgical coal and has been tested by
ArcelorMittal Dofasco since 2021. ArcelorMittal Dofasco has Disruptive hydrogen production technology – H2Pro
therefore signed a memorandum of understanding with CHAR The Company invested $5 million in H2Pro as part of a $75
for the purchase of biocarbon from CHAR’s Thorold, Ontario million Series B fundraise, with other investors including
facility that will enable larger scale trials in the coming years. Temasek, Horizons Ventures, Breakthrough Energy Ventures
and Yara. H2Pro is developing a disruptive way of producing
Heliogen – unlocking the power of sunlight to replace fossil fuels hydrogen from water. Similar to electrolysis, its technology uses
ArcelorMittal invested an initial $20 million in renewable energy electricity to split water into hydrogen and oxygen. Unlike
technology company Heliogen. Heliogen’s technology will conventional electrolysis however, hydrogen and oxygen are
harness solar energy by using a field of mirrors which will act as generated separately in different steps – an electrochemical
a multi-acre magnifying glass to concentrate and capture step and a thermally-activated chemical step. It is expected to
sunlight. The sunlight will then be subsequently converted into prove more cost-effective than traditional electrolysis, with
heat (HelioHeatTM), electricity (HelioPowerTM) or clean fuels capital expenditure costs anticipated to be broadly halved,
(HelioFuelTM). All three Heliogen products have the potential to alongside lower operational costs.
be applicable to the steelmaking process and support the steel
industry’s transition to net-zero. TerraPower-Breakthrough nuclear power
ArcelorMittal invested $50 million in nuclear innovation company
Form Energy – scaling low-cost and reliable battery technology TerraPower, as part of an $830 million equity raise, which is the
ArcelorMittal invested an initial $25 million, serving as the lead largest private raise among advanced nuclear companies. Its
investor in Form Energy’s $200 million Series D financing round. flagship technology Natrium™, featuring a cost-competitive
In October 2022, ArcelorMittal invested a further $17.5 million. sodium fast reactor combined with a molten salt energy storage
Form Energy, which was founded in 2017, is working to system, will provide clean, flexible energy and integrate
accelerate the development of its breakthrough low-cost energy seamlessly into power grids with high penetrations of
storage technology to enable a reliable, secure, and fully- renewables. TerraPower is currently building its first Natrium™
renewable electric grid year-round. It has recently unveiled a reactor, as part of the U.S. Department of Energy’s Advanced
new iron-air battery which is low cost (approximately one-tenth Reactor Demonstration Program (ARDP). The facility will feature
the cost of lithium-ion battery technology), has multi-day a 345 MWe sodium fast reactor alongside an energy storage
reliability (100-hour duration hence overcomes the intermittent system that can boost output to 500 MWe during peak demand.
nature of renewable energy generation), is scalable; and can be
sited anywhere. Boston Metal- Investment in steel decarbonization disruptor
ArcelorMittal invested $36 million in Boston Metal in January
Breakthrough Energy’s Catalyst program – driving adoption of 2023, see "Sustainable development highlights - striving to be a
next-generation clean technologies leader in the decarbonization of the steel industry".
ArcelorMittal is an anchor partner in Breakthrough Energy’s
Catalyst program and has committed to an equity investment of XCarb® India Accelerator Program
$100 million over the next five years. Founded by Bill Gates, In recognition of India’s ambition, capabilities, and unique
Breakthrough Energy is committed to scaling the technologies challenges in supporting the global energy transition the
the world needs to reach net-zero emissions by 2050. Company has launched a new, dedicated XCarb® Accelerator

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Program targeted at the country’s deep ecosystem of attributable to the Company’s operations, ArcelorMittal has
technology start-ups. For the XCarb® India Accelerator Program, estimated the gross capital cost required to be approximately
ArcelorMittal is collaborating with the Indian Institute of $10 billion, with the expectation that public funding covers 50%
Technology Madras ("IIT Madras"), whose pedigree in nurturing of the total cost of decarbonization, addressing both capital
ideas and mentoring will be applied to support start-ups or early expenditures and the higher operating expenditures, so that the
stage companies selected, enabling them to scale their Company and the industry are not rendered uncompetitive
technologies and business models from lab to the market. The during this transition period.
program has received an overwhelmingly positive response,
with over 50 start-ups and R&D projects submitting applications Engaging with policy makers and other stakeholders
across a range of technology domains. The shortlisted Due to the size and scale of transformation required in the
applicants will all have the opportunity to attend an 8-week global economy, not least in heavy industry, in order to achieve
workshop at IIT Madras after which the finalists will be selected net-zero, national and international policy making has a critical
with the aim to conclude in the first quarter of 2024. role in both setting timelines and the pace and nature of change.
There are enormous considerations around achieving a just
Setting ambitious targets given supportive policy transition that does not unfairly impact certain social groups or
Decarbonization is at the heart of the Company’s climate action geographies, but equally there is a need for governments to
strategy, aiming to have a leadership position within the steel facilitate the huge investments required through incentivization
industry in terms of target- setting, performance and disclosure. of markets and through funding and economic support.
In 2021, the Company set out its current targets to reduce ArcelorMittal has actively engaged and continues to do so with
carbon emissions intensity by 25% globally by 2030, and by governments, policy makers and related organizations and
35% in Europe. Both targets cover Scopes 1 and 2 for steel and interest groups, to build the appropriate policies and economic
mining per tonne of crude steel. and social conditions to achieve the changes required in a
commercially viable manner.
The Company's funding and capital expenditure objectives
contain key assumptions: A fundamental requirement is to address not just the significant
capital expenditure needed to transition to net-zero carbon
• The cost of green hydrogen will become increasingly technologies, but also the considerably higher operating costs
competitive over the next decade but will still require associated with these technologies in their early stages of
government support in ArcelorMittal’s countries of implementation, before they have achieved efficiencies of scale
operation. or viability.
• CCUS infrastructure will take time to be built at scale.
While Europe is expected to take the lead, CCUS ArcelorMittal believes that policy instruments need to deliver five
infrastructure has the potential to expand quickly in the market conditions to ensure that low- and zero- carbon
U.S. and Canada – providing some potential upside to emissions steelmaking is at least as competitive as higher
the business’ assumptions. carbon-emissions steel:

• Different regions of the world will continue to move at • Measures to incentivize the transition to low and zero
different paces and climate initiatives will differ carbon-emissions steelmaking
between jurisdictions at any given time.
• A fair competitive landscape that accounts for the
• The introduction of climate-friendly policies in other global nature of the steel market, ensuring domestic
regions will be 5-10 years behind Europe and the U.S. production and imports are subject to equivalent GHG
reduction regulations and incentives, such as a fairly
The Group's 2030 carbon emissions intensity reduction targets
and internationally applied Emissions Trading Scheme
reflect the unequal pace of change of the world’s
(ETS)
decarbonization journey. In Europe and Canada, where the
promise of supportive policy is more advanced, the Company • Financial support to innovate and make long- term
can be more ambitious. In other regions, the pace of change is investments and neutralize the higher operating costs
likely to be slower as the regulatory system is less evolved. of low and zero carbon- emissions steelmaking
Policymaking has a crucial role to play, and the Company will • Access to sufficient clean energies at affordable price
continue to advocate for policies that support the acceleration of levels
this transition. • Incentives to encourage the consumption of low- and
zero-carbon emissions steel over higher carbon
To achieve its 2030 global carbon emissions intensity reduction
emissions steel.
target of 25%, covering the Scope 1 and 2 emissions

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The global investor community is playing a key role in providing • Incentivizing the decarbonization of both primary and
the support and finance for the net-zero transition. Climate is a secondary steelmaking
key part of ESG governance that is causing a greater focus on • Providing transparency and consistency across steel
and scrutiny of key performance data such as carbon emissions products for customers
reduction. Investors are increasingly aligning their portfolios with
• Supporting the development of markets for low-carbon
the goals of the Paris Agreement, often using third-party ratings
emissions steel
and proxies to do so. These include initiatives such as Climate
Action 100+ ("CA100+") Net Zero Benchmark, the Sustainable The Company believes that the creation of clear definitions for
Steel Principles ("SSP"), Climate Bonds Initiative ("CBI"), the low-carbon emissions physical steel is an important component
annual CDP climate survey and the Science Based Targets of ‘demand pull’ and ‘supply push’ mechanisms that are required
initiative ("SBTi"). ArcelorMittal continues to engage with such to support the steel industry in its transition to net-zero by 2050.
initiatives to ensure that the challenges and opportunities of Clear definitions will also help inform targeted policy to support
competitively transitioning multiple steelmaking assets across the scale-up and commercialization of these near-zero
multiple regions into a low carbon economy are clearly technologies.
understood and that the approaches adopted are realistic and
At the heart of the concept for a low-carbon emissions steel
pragmatic.
standard are three core principles:
The Company is focused on engaging with numerous other
1. It must include a dual score system comprising an LCA
important strategic initiatives that gather key stakeholders to
value for finished products (and an environmental
identify the main challenges and requirements for the steel
protection declaration for construction products)
sector’s transition. These include the Energy Transition
alongside a decarbonization rating system which
Commission (ETC), the World Economic Forum (WEF), Rocky
categorizes low and near-zero carbon emissions per
Mountain Institute (RMI), Mission Possible Partnership (MPP),
tonne of hot rolled steel and rewards producers as they
the International Energy Agency (IEA), Industry Transition
decarbonize from their starting point.
Accelerator (ITA), World Business Council for Sustainable
Development (WBCSD), Organization for Economic 2. It must be designed in such a way that incentivizes the
Cooperation and Development (OECD), World Trade decarbonization of all methods of steel production
Organization (WTO), World Steel Association, American Iron through technology shifts to ensure a global decrease
and Steel Institute (AISI), ResponsibleSteelTM, the United of emissions, rather than simply through increasing
Nations Industrial Development Organization (UNIDO), and the scrap rates using existing technology. This can be
Industrial Deep Decarbonization Initiative (IDDI), amongst done by using a sliding scale based on the percentage
others. of scrap used in production, a system which is also at
the heart of the ResponsibleSteel™ and International
ArcelorMittal also actively engages with trade associations to Energy Agency ("IEA") low-carbon emissions steel
advocate for climate policies and conditions that will enable models.
steel to accelerate and achieve its net-zero transition globally 3. It must include a clearly defined boundary from which
while remaining competitive. The Company publishes the results carbon emissions are counted for the decarbonization
of its engagements through its climate advocacy reports on its rating system.
website.
The concept is designed to be complementary to methods for
Driving demand for low-carbon emissions steel rewarding virtual low-carbon steel, at least until significant
In line with its intention to lead developments in decarbonization, amounts of physical low-carbon steel are available.
ArcelorMittal published a concept for a low-carbon emissions
Climate governance and risk management
steel standard in June 2022 to help incentivize the
Structures and decision-making
decarbonization of steelmaking globally and support the creation
ArcelorMittal’s climate-related activity and progress continues to
of market demand for physical steel products which would be
be overseen by a robust governance structure that includes an
classified as lower, and ultimately near-zero, carbon emissions
executive-level Climate Change Committee and Board-level
steel. The concept involves:
Sustainability Committee chaired by an independent non-
• A dual scoring system which provides customers with a executive director. Having set a 2030 Group target on carbon
life cycle assessment ("LCA") value alongside a rating emissions reduction, the Board also decided to link executive
system which measures a company’s progress towards remuneration to the achievement of this objective. Since 2021,
near-zero decarbonization targets are part of the performance criteria for

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vesting of the performance share units in the long-term incentive In 2022, the Company engaged further expert advice to better
plan. understand the exposure to transition and physical climate-
related risks, assess the resilience of the business and inform its
In terms of investment decision-making, each major capital broader strategy. In line with the TCFD recommendations,
expenditure project proposal is required to demonstrate its ArcelorMittal developed four climate scenarios, including a
carbon impact to the IAC. The IAC makes all necessary below 2°C degrees and a 1.5°C degrees. Some of the scenarios
considerations to maximize the business’ chances of achieving selected are externally designed, based on plausible
its targets while ensuring each project is economically justifiable assumptions or TCFD recommendations, and others are
and earns its cost of capital. It is a crucial part of the Company’s customized publicly available scenarios with some improved
strategy to manage risk and deliver long-term growth. assumptions for greater alignment with ArcelorMittal’s modelling
and market expectations.
TCFD-aligned risk management
In 2021, ArcelorMittal reviewed and reported on the Company’s
climate risks and opportunities in its second Climate Action
Report which is its response to the recommendations of the
TCFD.

The scenarios selected were the following:

1.5°C scenario Central (base case) scenario Stated Policies High Emissions
Temperature by 2100 1.5°C Below 2°C >2°C 4.4°C
External reference scenarios IEA NZE IPCC SSP1-2.6 (Similarities Similarities with IEA IPCC SSP5-8.5
with IEA SDS) STEPS
Selection Rationale (1) Aligns with the TCFD (1) Possible decarbonization (1) Assesses performance (1) SSP5-8.5 is
recommendation to consider a path for the steel sector in a context where considered by the
1.5°C scenario for the ‘2°C or considering forward looking decarbonization policies TCFD to be best-
lower’ scenario, and (2) and technology, market and policy do not progress beyond practice scenario to
recognized by investors as an developments, and (2) meets current levels, and (2) understand stressed
external, reputable scenario. the TCFD recommendations incorporates other exposure to plausible
for considering ‘2°C or lower’ uncertainties such as physical risks.
scenario. energy security priorities.
Description Holds warming to approximately Below 2°C scenario, Scenario aligned with A high reference
1.5°C, aligned with the Paris exploring regional variations current policies, assuming scenario with no
Agreement. Advanced in low-carbon policies. limited additional policy additional climate
economies reach net zero in Europe, U.S. and Canada are support for policy – current CO2
advance of others and the ahead of the decarbonization decarbonization of the levels double by 2050.
scenario accounts for SDGs. trend; China achieves carbon steel sector.
Global steel emissions fall to neutrality by 2060; India by
around 0.22Gt by 2050. 2070, Russia follows limited
climate targets.
Used for physical risks/ No Yes No Yes
opportunities assessment
Used for transition risks/ Yes Yes Yes No
opportunities assessment

These scenarios were used to conduct screenings to international best practice to review ‘stressed exposure’ to
qualitatively identify material climate-related risks and impacts over a time horizon relevant to the asset lifetimes and
opportunities. For transition risks, the analysis was done at the the business.
segment-level and for physical risks, the analysis was done at
site-level. Main results are summarized below: Across the Group, all operational assets may be negatively
impacted by acute strategic implications, impacting steel
Physical risks production capacity. Rainfall flooding and wildfires present the
The scope of the analysis was ArcelorMittal’s whole value chain, highest risk, with negative implications that may include reduced
including 89 operational assets, 7 supply assets and 4 customer asset working capacity, and thus the amount of product being
regions, with focus on construction and automotive sectors due supplied to market. In terms of positive strategic implications,
to its high relevance to the business and its potential exposure improving resilience of infrastructure to cope with a higher
to physical impacts of climate change. The screening was done frequency and severity of landslides and tropical cyclones could
against the base case and the high emissions scenarios, but increase ArcelorMittal’s revenue driven by increased steel
results are shown only for the latter, in order to align with demand.

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Physical risk item Strategic Implication Strategic Importance by 2050

Disrupting supply and value chain transport routes High (negative)
Flooding, landslides, wildfires and Damaging equipment and infrastructure High (negative)
Acute storms
Disrupting operations and causing production High (negative)
delays or shutdowns
Extreme weather events Posing risk to personnel and impacting operations Medium (negative)
Coastal flooding, extreme heat Impacting supply and value chains Medium (negative)
and extreme cold
Chronic Impacting operations Medium (negative)
Water stress & drought
Impacting access to raw materials Medium (negative)
Increased severity and frequency Increasing customer demand for steel to strengthen Medium (positive)
Acute and chronic of destructive climate events buildings

Transition risks
For the transition screening assessment, the Company used approach for physical risks has been to expand the screening of
three scenarios: 1.5°C, below 2°C and the stated policies Company's assets, key joint ventures and suppliers using best-
scenario to stress-test the exposure to transition climate risks, available climate models against a more comprehensive list of
as per TCFD guidance. climate hazards, to align with the EU Taxonomy requirements.
Using suitable materiality thresholds, the Company has
A summary of the items of the highest strategic importance identified sites at material risk, and is conducting site-level
across ArcelorMittal’s business is listed below. The results are assessments to have more accurate data in order to develop
for 2030 under the ‘Central’ and the ‘1.5C’ scenarios, as these suitable, EU taxonomy-aligned adaptation solutions. The
capture the most significant transition impacts. Company is also working with experts to quantify potential
financial impacts on key metrics (revenue, capex, etc) from
• Policy & Legal: Main risk is related to carbon hazards like flooding, wildfires and extreme heat.
regulations not being equally applied to all market
participants (e.g. ineffective Carbon Border Adjustment For transition risks, ArcelorMittal is developing a site-level
Mechanism "CBAM"), reducing the cost financial model to test its business resilience against market,
competitiveness of steel produced in regions with a policy and technology-related climate risks, like changes in steel
higher cost of carbon. On the other hand, there is an demand from increased circularity, changes in raw material
opportunity to use policy support to reduce the cost of costs, timely introduction of favorable climate policies and
green energy and decarbonize ahead of competitors. availability of breakthrough technologies.
• Technology: Restrictions on clean energy scalability,
EU Taxonomy
increasing decarbonization costs in some regions (e.g.
The EU Taxonomy Regulation requires ArcelorMittal to report on
Europe).
the Taxonomy-alignment of its activities. The EU Taxonomy-
• Reputation: Inability to meet stakeholder expectations eligible activities identified can be classified as Taxonomy-
either due to delayed decarbonization or lack of aligned if they make a substantial contribution to climate change
commitment to climate justice, eroding trust of mitigation and do no significant harm ("DNSH") to other
customers, regulators, governments and investors. environmental objectives and, at the same time, ensure
• Market: Decrease of steel demand compared to minimum social safeguards. ArcelorMittal has identified a
business as usual, due to material efficiency and substantial contribution to climate change mitigation for the
longer product lifetime. In contrast, there could be manufacture of iron and steel under the technical screening
higher sales volumes or increased revenue due to criteria. However, the Company’s alignment with the EU
increased demand and price premium for low carbon Taxonomy was 0% in 2022 due to some gaps (the Company
steel, as well as demand for steel products supporting issued the report in April 2023). The main one relates to the “Do
the decarbonization of other sectors (e.g. automotive). no significant harm” to climate adaptation criterion, which is
There are also significant opportunities for lower cost of applicable to all activities considered eligible and sets specific
capital (higher capital availability) for low carbon steel requirements for the identification of physical climate risks and
projects. vulnerability assessments. Although this area has benefited from
the TCFD physical risk assessment that ArcelorMittal carried out
In 2023, the focus has been on developing methodologies to in 2022, the TCFD exercise does not fully overlap with the
move from this qualitative assessment to a financial requirements of the EU Taxonomy on this matter, as it excludes
quantification of the impacts of these risk and opportunities. The
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several physical climate hazards from the risk screening to enable a like for like annual comparison. This shows a
process. ArcelorMittal is working towards closing these gaps. reduction of 4.3% since 2018, from 2.07tCO2e/tcs to 1.98tCO2e/
tcs. The Company saw a 1.8% improvement in 2022, down to
Carbon performance (based on 2022 data) 1.67tCO2e/tcs from the 2018 baseline of 1.70tCO2e/tcs for its
In 2022, the Company’s adjusted group intensity target KPI was European adjusted target KPI – CO2e intensity of its steel
2.00 tonnes of CO2 emissions per tonne of crude steel ("tCO2e/ operations (Scopes 1 and 2). The adjusted absolute emissions
tcs"). Significant reductions are only likely to be made with the that correspond to the Company’s global target KPI (Scope 1
successful deployment of steelmaking and energy and 2, steel and mining) decreased by 22.2% compared with
transformation projects. In order to view the trend for CO2e 2018.
intensity of steel only, the Company also reports this data since
2018 in the table, adjusted for structural changes to its portfolio

1. These figures have been adjusted for structural changes to the ArcelorMittal portfolio in the previous 12 months, and reflect emissions and production for ArcelorMittal's site portfolio as at December 2022 to enable a like for like annual
comparison.
2. This indicator includes those emissions from purchased goods that a steelmaker would normally be expected to produce, such as coke, slabs, burnt lime in order to maintain a consistent system boundary and so a like for like comparison.

Environment and Biodiversity

The Company’s overarching aim in relation to the environment energy efficiency and resource efficiency, as well as promoting
and biodiversity is to strive to be a trusted user of resources and more sustainable industrial production (part of the European
the natural environment, and a responsible steward of the land Commission’s Green Deal for a climate-neutral continent) and
and ecosystems around its operations. The Company seeks to increased transparency of information available to public.
minimize environmental impacts, mitigate any residual effects
This has continued to bring sustainability and the environment
and where possible to deliver a net environmental benefit.
right to the heart of the Company’s operational and strategic
Globally, the regulatory backdrop to environmental compliance thinking, and to reflect this, during 2022 and 2023 it has
in industry is developing rapidly and becoming more stringent, continued to strengthen its overall environmental strategy,
notably through the roll-out of the CSRD reporting and investment and governance. In 2023, the IAC approved
preparation for Task Force on Nature-related Financial expected capital expenditures totaling $291 million for 26
Disclosure ("TNFD"). Environmental impacts such as that of air projects with environmental benefits. The Company is
emissions are coming under greater scrutiny as evidenced by developing a more robust measurement and monitoring
the updated air quality guidelines issued by the World Health management system.
Organization ("WHO") in September 2021, that has triggered the
Strengthened Board and management oversight and
ongoing review of the EU Ambient Air Quality Standards, the
compliance
ongoing revision of the Industrial Emissions Directive (the EU’s
In addition to the Sustainability Committee's role mentioned in
instrument regulating pollutant emissions from industrial
the governance section, the environmental performance is also
installations in the EU), and the updated Best Available
discussed at the executive level Sustainable Development
Techniques Reference Document ("BREF") for the Ferrous
Panel and with the Executive Office during quarterly Business
Metals Processing Industry.
Area Reviews.
These changes will result in stricter environmental norms
As part of its environmental goals and preparation for new
concerning pollution (emissions to air, water and land), broader
reporting regulations, the Company updated its environmental
impacts on natural environments, habitats and biodiversity, and

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policy at the end of 2022, which was launched in February 2023, Preparing for the CSRD
and is applicable to all operations. At the end of November 2022, the European Council granted
final approval to the the CSRD. This directive introduces more
The policy provides the environmental framework by which all detailed reporting requirements and mandates that large
parts of the business are expected to abide. The key principles companies and small and medium-sized enterprises report on
promoted by the policy are: sustainability matters. It is designed to address gaps in the
existing rules on sustainability information.
• Compliance with all relevant environmental laws and
regulations The European Financial Reporting Advisory Group (“EFRAG”)
• Implementation of environmental management has developed draft standards incorporating requested
systems including ISO 14001 certification for all information on ESG aspects. According to these standards,
production facilities companies must disclose their activities related to environmental
• Conducting environmental impact assessments for matters, including climate change, pollution, water, marine
major capital projects in accordance with good resources, biodiversity, ecosystems, and the circular economy;
international industry practice social matters, encompassing policies, practices, material
impacts, opportunities, and risks related to their workforce,
• Continuous improvement in environmental
workers in their value chain, potentially affected communities,
performance, taking advantage of systematic
and consumers and end users; and governance matters, such
monitoring and aiming at pollution prevention, and use
as corporate culture, business policies and practices related to
of Best Available Techniques ("BAT")
corruption, bribery, lobbying, business conduct, and payment.
• Implementing a long-term GHG emissions reduction
strategy to achieve net-zero On July 31, 2023, the European Commission adopted the
• Development of low impact, environmental production European Sustainability Reporting Standards (“ESRS”), the first
methods and local sourcing set of corporate sustainability reporting standards under the
CSRD. The CSRD entered into force in January 2023 and went
• Development and manufacture of environmentally
into effect on January 1, 2024. All companies subject to CSRD
friendly products with a focus on end-of-life recycling or
are required to issue annual sustainability statement according
reuse
to the ESRS.
• Supplier and contractor awareness and respect for the
company’s policy ArcelorMittal has taken several steps in preparation for
• Employee commitment and responsibility in publishing its first sustainability statement under CRSD in 2025.
environmental performance In 2023, a CSRD project management office was set up under
the sponsorship of CFO and reports to the CSRD Compliance
• Respecting protected areas and managing adverse
Steering Committee. The CSRD Steering Committee consists
impacts on biodiversity and ecosystem services in
of members from the executive team and is responsible for
accordance with good international industry practice
overseeing and guiding the project implementation. The PMO
• Efficient use of natural resources, raw materials, and the Steering Committee are supported by the CSRD
energy, land and water working group consisting of representatives from ArcelorMittal
• Open communication and dialogue with all affected business segments and various group functions. Further,
stakeholders. ArcelorMittal has since implemented various initiatives to update
its global ESG management and reporting processes, systems
The Company has also established an Environmental and tools in alignment with financial reporting processes in order
Compliance Methodology that covers the identification, to meet the reporting deadline.
investigation and mitigation of environmental non-compliances
and associated risks. It is based on ISO 14001 and covers In preparation, specifically in relation to the natural environment,
environmental compliance at all steel and mining operations ArcelorMittal is developing its capacity to collect information on
across the Group, relating to air, water, soil, residues, noise, its interface with nature, and developing methodologies for the
permits, landfills, monitoring and reporting, among others. At assessment of nature-related impacts, dependencies, risks and
each site, the segment CEO is responsible for ensuring that the opportunities, with the aim of proactively managing nature-
site environmental manager or designated person implements related themes.
the methodology correctly. At the Group level, the corporate
environment team handles environmental compliance reporting Part of this is development of a methodology for the assessment
and is responsible for regularly reviewing and updating the of nature-related risks and opportunities, in line with the
methodology as needed. recommendations of the TNFD, as set out in the draft European

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Sustainability Reporting Standards ("ESRS"). The methodology LCAs and Environmental Product Declarations (EPDs) are also
is being developed and tested as part of two mining and steel increasingly necessary for the specification and validation of the
operations pilots, ArcelorMittal Liberia and ArcelorMittal Bremen. Company’s products, particularly for key customer sectors, such
The objective is to develop the methodology for site-level as automotive and construction, as these assessments are
assessment for use in the Group more widely, notably in priority regarded as transparent and objective evaluations of the
sites where risks and opportunity may be most material. potential impact of products on people and planet. The business’
expertise in these areas is an important asset and the Company
In parallel, for the identification of priority sites, the Company is intends to continue building greater knowledge and experience
developing a methodology that allows it to combine and in EIAs, LCAs and EPDs. In 2023, the Company undertook a
leverage the wide array of tools suggested by the TNFD that total of 63 LCA studies related to steel products and the
incorporate different data layers on matters such as biodiversity, processes used to produce them, all guided by the relevant
water and ecosystem services. standards (ISO 14040-44). In addition, the Company issued 24
EPDs in 2023, and expects this to continue to build over the
SEC climate change disclosure
coming years.
Second, in March 2022, the U.S. Securities and Exchange
Commission (“SEC”) issued a proposed rule that, if adopted, Reducing air emissions
would enhance and standardize climate disclosure requirements Air emissions remain one of the Company’s greatest
provided by public companies. The new regulation would require environmental challenges, and one that is naturally of particular
organizations to provide detailed reports on their climate-related concern to local communities. It was the most highly ranked
risks, emissions, and net-zero transition plans. These would environmental issue for both stakeholders and the Company in
include climate-related financial impact and expenditure metrics, its most recent materiality assessment. The Company is
as well as a discussion of climate-related impacts on financial dedicating significant resources to tackle air emissions in
estimates and assumptions in the financial statements. These investment plans for each business unit and site, particularly
disclosures would also be subject to management’s internal around ducted dust, SOx and NOx emissions.
control over financial reporting and external audit. The proposed
rule would apply to foreign private issuers which file annual Across the sites, in line with its Group Environmental Policy, the
reports on Form 20-F with the SEC, such as ArcelorMittal. The Company is investing in more robust monitoring systems and
2022 proposal would have required large companies to disclose where possible, using the best available technology to further
most of this information starting from the fiscal year 2024, with improve environmental performance.
filings due in the year 2025; this implementation schedule now
seems unlikely given that the final rules have not yet been The Company is also making significant progress in
adopted. The SEC is now expected to act on the proposed understanding sources of emissions, characterizing them,
climate-related disclosures by April 2024. predicting their appearance and movement, and creating
mitigating solutions. Particular advances are being made in
Upgrading the environmental data management system detection through laser and AI powered video surveillance, with
The Company’s existing environmental data management the ultimate goal of defining what emissions are being released,
system needs to be strengthened significantly to meet the from where, and with what trajectory and diffusion, such that
increase in reporting demands. Enhanced systems and tools are they can be arrested, removed or mitigated.
required to put the appropriate monitoring and action plans in
place. A new technology platform went live in the third quarter of The Company is running pilot programs to test the effectiveness
2023 and will be connected with environmental databases of of automated monitoring equipment, including advanced
sites across the Group, either existing or under deployment. It sensors technology, aimed at giving better oversight of dust
will provide ongoing environmental data reporting requirements. emissions and ad hoc emission events, with the intention of
This combination will enhance the Company’s data acquisition, rolling this capability out across priority sites. LIDAR (laser
provide greater quality control, enable automated data gathering imaging, detecting and scanning) helps to detect diffuse air
and drive more timely reporting. emission sources and to predict how they may develop due to
changes in production, meteorological conditions, and other
Building greater expertise in EIA, LCA and EPD variables.
Under the Company’s new environmental policy, Environmental
Impact Assessments (EIAs) are mandatory for all major capital This enhances the selection of appropriate preventive or
projects, so that the likely effects are identified at the earliest mitigating measures to be put in place. LIDAR has so far been
possible stage, and negative impacts can be avoided, reduced tested at sites in Fos-sur-Mer, Asturias, Ghent and Tubarão.
or offset. To support this, the Company is building up its Video monitoring of emissions is also proving very effective and
specialist expertise and personnel in this area.
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the roll-out of cameras is underway across a range of sites with existing water treatment facilities. It was completed in May
enabling 24-hour dust emission detection. 2023.

The Company is also progressing in the industrialization of Protecting biodiversity and ecosystems
advanced filtration technologies to reduce emissions at stacks. The COP15 Biodiversity Conference in Montreal, at the end of
For diffuse dust emissions, R&D has developed a methodology 2022, highlighted the ongoing damage to species biodiversity
to calculate technical requirements to capture the filtration around the world. The impending onset of TNFD reporting is
requirements based in advanced CFD simulations, visual also demanding much greater corporate awareness and action
camera and measurements. It enables the correct dimensioning to record, monitor and mitigate impacts on nature.
of equipment in critical hotspots such as the sinter coolers.
Limiting the Company’s land use and its impacts, reducing
Each ArcelorMittal site is implementing an air quality emissions to air and water, and minimizing resource
improvement plan. For example, ArcelorMittal has been consumption, all contribute to reducing biodiversity impacts, but
investing in an extensive program at Fos-sur-Mer, France to the Company recognizes that its involvement and work needs to
reduce emissions from steelmaking operations since 2010. Dust go beyond the boundaries of its sites, and extend into
emissions consequently reduced by 70% between 2010 and engagement with local communities. Like many other
2020. An additional €50 million investment in environmental companies, ArcelorMittal needs to increase its capabilities in
improvements over the 2021 to 2023 with a specific focus on measuring and monitoring key biodiversity and ecological
water and dust emissions will further increase environmental indicators, so it can develop the appropriate mitigatory or
improvement. The projects include an air emissions filter beneficial actions to protect its surrounding environments,
installed at the Fos sinter plant with a filtration area of 20,000m2, ecosystems and species. This will involve internalizing
aimed at reducing dust emissions by 40% and overall substantial additional resource, knowledge, expertise and
channelled dust emissions by 15%. A de-dusting system was systems. The Company plans to enhance its management
also commissioned in 2023. In addition, the construction of a approach in this area to align with the proposed TNFD
ladle furnace with dust removal and water treatment station is approach.
scheduled for commissioning in 2024.
Perhaps the most challenging location for the Company in
Protecting and conserving water resources protecting biodiversity is its mining operations in the Nimba
Water management is ranked highly as an important issue for county of northern Liberia. Located to the east of its mining
the Company and stakeholders in its materiality assessment. operations, the Eastern Nimba mountain range extends from
The Company is determined to continue improvements in Liberia into Guinea and the Ivory Coast, an area which is
reducing its water consumption and enhancing water quality protected by conservation measures such as the East Nimba
across its operations. Unlike carbon emissions, which are a Nature Reserve (ENNR) in Liberia. Both Eastern and the
global challenge, water use, availability and quality are more Western range have global conservation value and are home to
local, requiring the business to work closely with local a remarkable diversity of species and habitats, many of which
municipalities, water authorities, non-profit organizations and are highly threatened.
communities.
As part of developing a biodiversity transition plan to meet the
In pursuing these goals, the Company is investing significantly CSRD requirements, the Company participated in the ICMM
in innovative techniques for water recovery, water treatment, TNFD pilot program with a study on its Liberian mining
establishing alternative water sources and reduced energy operations. The study:
usage.
• built awareness of nature-related impacts,
In the Company’s mining operations, some sites are recycling dependencies, risks and opportunities
as much as 98% of their water. AMMC invested $52 million in a • helped to shape and organize future TNFD
water treatment plant to prevent heavy metals dissolving out of disclosure
excavated waste rock piles from entering adjacent surface
• provided the Company with helpful insights ahead of
waters.
the release of the final TNFD framework for
The Newcastle site in South Africa has invested $8 million in a application elsewhere in the Group
water treatment project by constructing a 460,000m3 stormwater
ArcelorMittal has developed a sustainable supply and
runoff dam and reducing the plant’s overall water demand. It
management model at its BioFlorestas project in the south-
includes increased capacity stormwater interceptors integrated
eastern state of Minas Gerais, Brazil. The project has an area of
100,000 hectares of planted eucalyptus forests and 40,000

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hectares of permanent conservation and legal reserve. From the The Company has 16 tailings storage facilities (TSFs) including
eucalyptus forestry the Company produces charcoal that is used conventional, paste, dry-stack and in-pit facilities, of which 11
as a biofuel for its furnaces in Juiz de Fora and to exchange for are active, 5 are inactive and one is closed. To ensure their
pig iron with local producers. It is seeking to set a template in ongoing safety, a formal assurance process is in place that
the adoption of sustainable management models focused on includes internal and external audits. This is supported by a
socio-environmental responsibility. continuous improvement program that reduces the Company's
risk of existing conventional operations by promoting reduced
BioFlorestas is certified by international standards such as the moisture disposal methodologies (e.g. high-density thickened
Forest Stewardship Council ("FSC") for planting, forestry tailings or filtered tailings where appropriate) and proven new
development, harvesting and charcoal production. Its Forestry technologies (e.g. high-precision radar, InSAR satellite
Research and Improvement Center includes a study of forest monitoring and remote instrumentation) to monitor facilities
genetic improvement with the objective of obtaining genetically globally in real time. The Company is assessing all its mining
superior seeds, pollen and grafts. operations for transition in line with these principles and
developing customized design solutions for non-conventional
Protecting land, reducing waste and using by-products in the
tailings system management.
circular economy
With growing and competing demands for land both nationally Tailings thickening steps have been implemented in assets in
and internationally, there are increasing pressures on remaining Mexico, reduced moisture disposal methodologies in Brazil and
natural ecosystems. For land that is in use, particularly in and Canada, and further studies are ongoing across a range of
around heavy industry, ecosystems have suffered biodiversity operations.
loss and land degradation through transport, infrastructure,
noise, pollution and overall disturbance. Responsible value chains
Customers increasingly expect to buy products that are
ArcelorMittal is determined to reduce its impacts on the land that responsibly sourced and sustainable. They, together with
it occupies and in neighboring areas. The growth of waste broader stakeholders, are exerting pressure across value chains
storage sites has been a traditional issue for steel and other to ensure that they are committed to ensuring the respect of
natural resource companies. There is now a much closer focus human rights and the environment, as well as addressing
on such sites in relation to safety of local communities and climate change. These expectations are reflected in the onset of
employees, the accumulation of pollution from waste metals and transformational legislation e.g. CSRD, Corporate Sustainability
compounds, and more simply the wastage and degradation of Due Diligence Directive (CS3D), etc.
precious land areas. The Company is seeking to reduce
unnecessary waste storage through innovative uses of slags, The Company’s aim is to operate responsibly across the whole
dust and sludges. Slag can be used in cement and asphalt for value chain to meet its stakeholders' expectations and earn its
construction, fertilizer for agriculture, and ballast in offshore wind license to operate. The strategic actions the Company is taking
turbine foundations. Blast furnace slag has been reused as a towards this objective include:
raw material in cement production, saving million tonnes of CO2
emissions per year. Additional attention is being paid to • Strengthening the Human Rights policy
capturing dusts and sludges created through operations, and ▪ Certifying the Company’s operations to leading third-
recycling these where possible. party industry multi-stakeholder standards e.g.,
ResponsibleSteel™.
Ongoing focus on tailings dam safety
• Encouraging key raw material suppliers to certify to
Tailings dam safety and structural integrity is a critical issue for
industry leading ESG standards
all mining companies, in order to protect the safety of local
communities and employees, and to protect the environment • Responding to sustainability due diligence legislation.
from pollution and flooding.
Governance of value chain responsibility and sustainability
The Company has developed a tailings strategy based on the Governance of the Company's value chain is covered by the
leading industry guidelines from the Mining Association of Sustainability Committee and SDP. Where deemed relevant, key
Canada (MAC), the Canadian Dam Association (CDA) and the issues are raised with the Executive Office for discussion and
Global Industry Standard for Tailings Management (GISTM). action.
The aim is to ensure that all Group tailings facilities are
Governance of the Company’s value chain is also covered
structurally sound and safe, with all efforts directed at
under its existing sustainability and responsibility policies and
minimizing risk, including independent audits benchmarked
procedures, such as Human Rights, Anti-Corruption, Conflict
against these international guidelines.

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Minerals, Code of Business Conduct, Code of Responsible around it. The Company takes the view that this strategic
Sourcing, Whistleblower, Health and Safety, and Environment. perspective helps it make better long-term decisions and
thereby build and protect value for the future.
Strengthening the Human Rights policy
ArcelorMittal has strengthened its Human Rights policy to better With the increased level of scrutiny and compliance, the
align with best practice and increase its focus on the areas that Company believes it to be important to work with recognized,
have been identified as priorities for the business. The Company respected, third-party institutions to achieve and be certified for
strives to respect all internationally recognized human rights, exacting standards of responsibility. ResponsibleSteelTM and the
including, but not limited to, those covered under the Initiative for Responsible Mining Assurance (IRMA) are two of
International Bill of Human Rights, the ILO Declaration on the leading industry bodies promoting responsibility in the steel
Fundamental Rights at Work, and implementing the UN Guiding and mining industries respectively. ArcelorMittal is working with
Principles on Business and Human Rights ("UNGPs"). In both bodies as part of its approach to strengthening its
addition, the Company voluntarily seeks to uphold and align with sustainable value chain and legal compliance.
other international standards including the OECD Guidelines for
Multinational Enterprises, the International Finance ArcelorMittal was a founding member of ResponsibleSteelTM
Corporation’s Environmental and Social Performance and has a seat on the board representing business members.
Standards, the Voluntary Principles on Security and Human The Company also has a steering committee seat at IRMA. The
Rights, and other relevant voluntary conventions and Standards values and missions of both organizations correspond closely to
applicable to its operations. the Company’s own purpose and its desire to minimize risk,
improve performance and meet stakeholders’ expectations.
The purpose of the Human Rights policy is to set out the guiding There is also an alignment with the increasing legislative
principles for the Company’s attitude, decision-making, actions developments to reassure stakeholders that the Company is
and behavior in relation to human rights. The policy and working to operate responsibly. The key strategic actions on
associated practices will strengthen as the Company’s operating certification include:
procedures create an environment where human rights are fully
respected, and will also help to prevent the Company from • continuing to self-assess and certify the Company’s
engaging in activities that directly or indirectly violate human major steelmaking sites to ResponsibleSteelTM
rights. standards; and
• completing IRMA self-assessments at the Company’s
ArcelorMittal expects all its business partners to share its iron ore mining operations.
commitment to promote human rights and environmental
ResponsibleSteelTM published its first certification standard for
protection requiring suppliers (including subcontractors) to
steelmaking sites in 2019 based on 12 ESG principles. The
adhere to its policies including Human Rights and Responsible
standard involves a rigorous audit process covering over 400
Sourcing policies.
criteria and can take over a year. Members using the standard
The policy forms the basis for how the Company manages are able to reassure customers and other stakeholders of the
human rights in all aspects of the business and guides all other credibility of social and environmental management of their steel
policies and codes of conduct. operations.

ArcelorMittal is determined to avoid causing or contributing to As of the end of 2023, the Company had achieved certification
adverse human rights impacts, ensure it is not complicit in their at the 33 sites listed below:
violations by implementing ongoing due diligence processes that
• ArcelorMittal Belgium (Geel, Genk, Ghent, and Liège)
aim to prevent, avoid, mitigate, and remedy human rights
impacts the Company could impose on its employees, • ArcelorMittal Belval and Differdange in Luxembourg
contractors, workers within the Company's value chain, (Esch-Belval, Differdange and Rodange)
members of communities where the Company operates, and • ArcelorMittal Bremen and ArcelorMittal
any other people whose human rights may be adversely Eisenhüttenstadt in Germany
impacted by its activities. • ArcelorMittal España (Asturias, Etxebarri, Lesaka and
Sagunto)
Certifying the Company’s operations to third-party, industry
leading multi-stakeholder standards • ArcelorMittal Méditerranée in France (Fos-sur-Mer and
Assurance, certification and compliance is about taking a more Saint-Chély-d’Apcher)
outward-looking view of the Company’s business, how it
operates and how it impacts the society and environment

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• ArcelorMittal France, Cluster North (Dunkerque, This is reflected in legislative developments, namely the French
Mardyck, Desvres, Montataire, Florange, Mouzon, Duty of Vigilance Law (2017) and the adoption of the German
Basse Indre) Supply Chain Due Diligence Act 2022, which both focus on the
• ArcelorMittal Poland (Dąbrowa Górnicza, Kraków, supply chain; and the impending EU-wide Corporate
Zdzieszowice, Świętochłowice, Sosnowiec, Chorzów) Sustainability Due Diligence Directive (CS3D) which is expected
to be adopted in 2024 and proposes to extend due diligence
• ArcelorMittal Warszawa Sp. z o.o., Poland
requirements to the whole value chain. The CS3D addresses a
• ArcelorMittal Brasil (ArcelorMittal Tubarão, Monlevade, wide set of sustainability due diligence requirements, including
Vega) in relation to human rights, environmental impacts and climate
• ArcelorMittal Tailored Blanks Zaragoza S.L. change in companies’ own operations, subsidiaries and value
chain. The CS3D requirements are also reflected in the
Further sites in Europe, Brazil and NAFTA have commenced the reporting requirements of the CSRD.
audit process. The Company’s short-term goal is to see
steelmaking sites in half of ArcelorMittal’s operating countries During 2023, the Company worked on a set of key strategic
being certified by 2025. actions to strengthen its existing compliance and procurement
and sales processes for its value chains including:
Most of the Company’s iron ore mining operations are working
towards certification with IRMA, and the organization is • Establishing an overall management system approach
recognized by several of the business’ major customers, which to value chain sustainability due diligence
have also joined the initiative. Like ResponsibleSteelTM, IRMA • Building internal capacity for corporate sustainability
certification is demanding, and draws from wide-ranging sources due diligence including responsible sourcing
and standards such as the OECD, UN, IFC, ILO and IUCN.
• Adding digital ESG risk assessment solutions
The Company’s iron ore mining operations in Canada, Liberia, • Mapping value chain partners and prioritizing high risk
Brazil, and Mexico are aiming to achieve the first level of IRMA value chains
certification (IRMA Transparency) by the end of 2025 and are • Implementing a progressive, ESG risk-based
currently completing a self-assessment against IRMA’s assessment process across all the Company’s value
standards. chains

As an additional form of assurance for its Canadian mines, the • Reviewing, and updating where appropriate, the
Company seeks to comply with the Mining Association of processes the Company uses to manage ESG issues
Canada’s Towards Sustainable Mining (TSM). AMMC has within its own operations
implemented TSM protocols since 2004 and is both TSM- • Extending the Company’s End-User Declaration
assured and five-star rated. process to include wider ESG considerations
• Reviewing, and updating where appropriate, ESG due
Both IRMA and TSM have been formally recognized by
diligence processes for investments and potential
ResponsibleSteelTM as meeting the criteria for its ‘Certified Steel’
acquisitions.
responsible sourcing requirements.
The Company is focusing on implementing its plans and
Encouraging key raw materials suppliers to certify to industry- managing actual and potential adverse impacts on human rights
leading ESG standards and environment across the Company’s complex value chain,
The supply chain is clearly a fundamental part of the overall which comprises over 40,000 direct suppliers across the globe.
value chain, and ArcelorMittal recognizes that it must play its Developing and implementing management systems to achieve
part in encouraging its suppliers to adopt and achieve higher full coverage, and engaging suppliers to adopt higher standards
sustainability standards to facilitate its own certification of could take several years to achieve.
ResponsibleSteelTM, IRMA and TSM standards. The Company
is doing this by setting an example, engaging with suppliers, and Mapping the full value chain is a complex process and needs to
setting standards in its procurement requirements, namely be conducted on a risk-prioritized basis to establish areas of
through its Code for Responsible Sourcing. high environmental, social and governance (ESG) risk. This will
initially need to focus on value chain partners with direct
Responding to sustainability due diligence legislation business relationships before moving up and down the value
Legislation on sustainability due diligence is mounting as chain as the understanding of ESG risk is increasingly
governments, investors and civil society enact mechanisms to developed.
ensure that companies are putting in place sustainable and just
value chains.
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Communities and a Just Transition national and international stakeholders. It recognizes that there
ArcelorMittal is determined to make a positive contribution to its is an increasing need to engage regularly and openly with
local communities and wider civil society as part of its purpose. communities and stakeholders to build mutual understanding
Communities are a material stakeholder as they provide the and trust.
Company’s major operations with a social license to operate.
The Company must demonstrate that it listens to their needs The Company’s strategy on engagement is based around the
and concerns and creates value for them. following actions:

The transition to a low carbon economy will lead to all • Launching a revised Human Rights policy
companies, and society in general, needing to make • Investing in its local communities through improving its
adjustments in the skills they need, resources they use and processes for stakeholder engagement and grievance
technologies they deploy. Companies should consider how they management
can soften the impacts of these adjustments across their value • Preparing the Company for increased levels of
chains in a just and equitable way. mandatory community and human rights disclosures
(e.g., as required by CSRD and CS3D legislation)
Governance of community engagement
In addition to the role of the BS (described in the governance • Developing a Just Transition management approach
section above), the Executive-level Sustainable Development
Launching a revised Human Rights policy
Panel (SDP) is a forum to discuss Company’s engagement with
ArcelorMittal has revised its Human Rights policy to focus on the
and impact on communities. Where deemed relevant, key
areas that have been identified as priorities for the business and
issues are raised with the Executive Office for discussion and
seeks to uphold the fundamental human rights in those
action.
countries in which it operates. The Company is committed to
The Global HR Panel (GHRP) is also involved in governance respecting all internationally recognized human rights, including,
around the issues of employment, recruitment, skills, resourcing but not limited to, those covered under the International Bill of
and training. Human Rights, the ILO Declaration on Fundamental Rights at
Work, and implementing the UN Guiding Principles on Business
The Company’s audit and certification process with and Human Rights (‘UNGPs’).
ResponsibleSteelTM and IRMA places considerable emphasis on
the business’ interaction with communities and provides In addition, the Company voluntarily upholds and aligns with
assurance to stakeholders of its standards and commitments in other international standards including the OECD Guidelines for
this regard. Multinational Enterprises, the International Finance
Corporation’s Environmental and Social Performance
Governance of the Company’s policies related to communities Standards, the Voluntary Principles on Security and Human
and society is also covered under its existing sustainability and Rights, and other relevant voluntary conventions and Standards
responsibility policies and procedures, such as Human Rights, applicable to its operations.
Code of Business Conduct, Whistleblower, Health and Safety,
and Environment. The purpose of the policy is to set out the guiding principles for
the Company’s attitude, decision-making, actions and behavior
The Company’s operating units are accountable for in relation to human rights. The policy forms the basis for how
implementing and applying the Group’s policies, standards and the Company manages human rights in all aspects of the
guidance. business and guides all other policies and codes of practice in
relation to human rights e.g., Code of Business Conduct,
Strategic actions - Listening, respecting and protecting Responsible Sourcing policy and code, Health and Safety policy,
communities Environmental policy, Tax policy, human resources policies, and
The Company perceives a growing interest and concern from others.
local communities around the impacts of industry, business,
infrastructure, transport and other activities on their physical, ArcelorMittal is committed to proactively acting to avoid causing
natural and social environments and resources. This is being or contributing to adverse human rights impacts, ensuring it is
driven by a range of factors, including greater inherent visibility, not complicit in their violations by implementing ongoing due
transparency and scrutiny, as a result of democratization of diligence processes that aim to prevent, avoid, mitigate, and
information, the prevalence of social media and changes in remedy human rights impacts the Company could impose on its
socio-economic standards and expectations. The Company’s employees, contractors, workers within Company's value chain,
reputation and license to operate with local communities and members of communities where the Company operates, and
broader civil society is based on the trust it builds with local,
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any other people whose human rights may be adversely dialogue with local communities about their needs. Initiatives
impacted by its activities. include:

In 2023, along with the update of the Human Rights policy, the • The ‘Steel saves lives’ campaign (#AçoSalvaVidas)
Company conducted a corporate level saliency assessment mobilized employees, customers and the community,
aligned to best practice. The aim of this assessment was to and raised more than R$1.2 million, an amount that
raise awareness of the most salient human rights issues for the was doubled by ArcelorMittal Brazil and Belgo Bekaert,
Group and to inform ArcelorMittal’s human rights priorities, to R$2.4 million. The support benefited more than
strategy, and disclosures. The actual and potential risks 120,000 people in the communities around the
identified will be assessed and prioritized based on the severity Company’s sites and in other locations throughout
of impact on people and following the UNGPs criteria. The Brazil.
Company has finalized the recommendations for improvement • The ArcelorMittal Environment Award: created to
and once approved they will inform ArcelorMittal’s human rights encourage the school community to propose scientific
strategy and roadmap. and innovative solutions to environmental issues, in
addition to raising awareness of sustainability.
Investing in local communities through better stakeholder
engagement, needs assessment and grievance management Liberia
The communities and localities within which the Company ArcelorMittal founded and operates a Vocational Training Centre
operates provide the Company with its license to operate; they at Nimba to help local young people to develop skills to provide
provide the skills, know-how and labour to produce its products; them with opportunities that otherwise they would not have. By
and the local infrastructure, goods and services the business end of 2023, 95 apprentices graduated from the three-year
needs to keep its operations running. The Company values their residential program.
support and in return it has a responsibility to keep them
ArcelorMittal Liberia also launched a training and development
informed of its strategy and plans that might affect them.
program for high-potential Liberian employees to gain work
The Company continues working on improving its policies, experience and knowledge in ArcelorMittal Mining operations
guidance and frameworks to better ensure that it is listening globally. The employees will receive advanced training in the
carefully to the communities affected by its operations, investing fields of mining production, operation optimization, plant
in what they care about and effectively investigating any maintenance, planning and execution, plant electrical operation
grievances they may have. systems, and electrical maintenance. Over 100 students are
undergoing skills training to become technicians for Phase 2
ArcelorMittal’s community outreach work is driven largely by expansion project, and the center will be expanded to a second
local teams, which are best placed to understand the needs of site at Grand Bassa.
those who live near its operations. Some examples include:
There is also a 3-year Housing and Accommodation plan to
Ukraine support construction workers at Buchanan and Yekepa.
Following the Russian invasion of Ukraine in February 2022, the Employees without housing are provided housing allowances at
Company's operations have been substantially impacted, and its competitive rates; employees’ children and dependents are
employees have suffered greatly. provided cost-free primary and secondary school education,
with free access to recreational and sporting facilities including
The Company has continued to support its people in whatever volleyball, basketball and football fields.
ways it could, not least through channelling donations from
ArcelorMittal employees worldwide via the United Nations Spain
humanitarian effort coordinated by UNICEF, with the Company In Spain, as in many other countries, there is a substantial gap
matching donations made by employees. As of December 31, between training in STEM disciplines and the demand from
2023, approximately €5.2 million has been donated under this companies for STEM trained graduates, and this gap is
initiative. Wider initiatives included the provision of ambulances expected to continue growing. To address this gap, ArcelorMittal
for evacuation around Kryvyi Rih, donation of food aid and Spain has invested 45% of its total budget in community
surgical equipment and medical supplies for local hospitals. investments dedicated to strengthening STEM training for
students. This involves a number of initiatives:
Brazil
ArcelorMittal Brasil prioritizes its community investment in the • Scholarships – recognition for students for their final
areas of education, culture, sport, corporate philanthropy and degree projects and best projects focused on the steel
the creative economy, and bases its engagement on open industry.

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• Industry immersion programs – offering visits by society, which in turn build social injustice and unrest. For these
secondary and university education students to plants reasons, the European Union has developed a Green Deal
to visualize the work environment of the future. package of policy initiatives aimed at achieving a positive
• Training practices in industrial environments – in most transformation to a fair and prosperous society with a
of the Company’s plants in Spain, a mixed program is sustainable and competitive economy. In line with this aim,
deployed that includes internships for university ArcelorMittal has developed a framework and guidance for its
students and adherence to Dual Professional Training. operations to manage their transitions in a just way.

• Incentives to continue higher technical and scientific The framework sets out:
STEM-related studies – this includes a local investment
plan of donations to provide high-specification • What the "Just Transition" means to ArcelorMittal
equipment in vocational training centres. The challenge • The Company’s "Just Transition" principles
is especially pronounced among the female population
• An asset level methodology to help manage the
with enrollment for technical careers decreasing by
Framework implementation at asset and plant level
40% among women. The incorporation of young
people, but especially women, to this field of study is • Overarching governance to monitor and measure
an absolute priority. progress.

Turkey ArcelorMittal’s "Just Transition" foundational principles and

In February 2023, ArcelorMittal donated $5 million to support the commitments
humanitarian relief program in Turkey and Syria, following the ArcelorMittal defines "Just Transition" as a principles-based
devastating earthquake in the region. The Company has a systematic, ongoing process which aims to ensure an effective
business presence in Turkey through its sales office and joint- and inclusive transition to a low-carbon economy, while adapting
venture partners. ArcelorMittal donated $2.5 million to the and building resilience of Company's business to climate
Disasters Emergency Committee (DEC) and a further $2.5 change.
million to Médecins Sans Frontières (MSF) to support the relief
efforts in both countries. • Achieving net zero GHG emissions and improving its
environmental footprint
Preparing for increasing levels of mandatory community and
• Investing in skills for the future (e.g. sustainability,
human rights disclosures
STEM and Industry 4.0)
New legislations such as the EU CSRD and CS3D will require a
much higher level of disclosure on all sustainability issues, not • Providing decent (safe, healthy, clean, inclusive) work
least on how companies impact their communities and how • Investing in smarter steel products and innovative
those communities influence companies’ activities. In solutions
preparation for this new reporting landscape, ArcelorMittal has • Procuring goods and services in a sustainable,
reviewed its existing reporting processes to identify gaps with responsible and ethical manner
the requirements, establish clear guidelines on data to be
• Striving for tax transparency and making a transparent
collected and how to proactively identify, manage and report on
and fair contribution to society
community-related impacts, risks and opportunities. As a result,
• Implementing an ongoing human rights due diligence
the Company conducted the saliency assessment mentioned
program
above, to identify and prioritize the most severe risks and
impacts for communities. The Company is also working on • Enabling climate change adaptation opportunities and
updating guidance on stakeholder engagement, grievance building climate change resilience
mechanisms, human rights risk assessment and community • Promoting social dialogue and meaningful engagement
investment guidelines. with key stakeholders
• Engaging with governments and regulators for public
Developing and implementing a Just Transition management
funding and to support economic and social policies for
approach
carbon reduction, clean energy and fair transition
The transition to a low-carbon, climate-resilient economy,
meeting the goals of the Paris Agreement, has the potential to • Maintaining access to global capital and responsible
trigger a new dimension of inequalities and vulnerabilities in investment opportunities.

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Products between contract prices and spot prices, have been

Information regarding segment sales by geographic area and characterized by price volatility in recent years.
sales by type of products can be found in note 3 to
Mini-mills
ArcelorMittal’s consolidated financial statements.
A mini-mill employs an electric arc furnace to directly melt scrap
ArcelorMittal has a high degree of product diversification relative and/or scrap substitutes such as direct reduced iron, thus
to other steel companies. Its plants manufacture a broad range entirely replacing all of the steps up to and including the energy-
of finished and semi-finished steel products with different intensive blast furnace. A mini-mill incorporates the melt shop,
specifications, including many complex and highly technical and ladle metallurgical station, casting, and rolling into a unified
sophisticated products that it sells to demanding customers for continuous flow. The quality of steel produced by mini-mills is
use in high-end applications. primarily limited by the quality of the metallic raw materials used
in liquid steel-making, which in turn is affected by the limited
ArcelorMittal’s principal steel products include: availability of high-quality scrap or virgin ore-based metallics for
use in the electric arc furnaces. Mini-mills are substantially
• semi-finished flat products such as slabs; dependent on scrap, which has been characterized by price
• finished flat products such as plates, hot- and cold- volatility in recent years, and the cost of electricity.
rolled coils and sheets, hot-dipped and electro-
galvanized coils and sheets, tinplate and color coated Integrated mini-mills
coils and sheets; Integrated mini-mills are mini-mills that produce their own
• semi-finished long products such as blooms and billets; metallic raw materials consisting of high-quality scrap
• finished long products such as bars, wire-rods, substitutes, such as DRI. Unlike most mini-mills, integrated mini-
structural sections, rails, sheet piles and wire-products; mills are able to produce steel with the quality of an integrated
and producer, since scrap substitutes, such as DRI, are derived from
• seamless and welded pipes and tubes. virgin iron ore, which has fewer impurities. The internal
production of scrap substitutes as the primary metallic feedstock
ArcelorMittal’s main mining products include iron ore lump, provides integrated mini-mills with a competitive advantage over
fines, concentrate, pellets and sinter feed. traditional scrap-based mini-mills by insulating the integrated
mini-mills from their dependence on scrap, which continues to
Steel-making process
be subject to price volatility. The internal production of metallic
Historically, primary steel producers have been divided into
feedstock also enables integrated mini-mills to reduce handling
“integrated” and “mini-mill” producers. Over the past few
and transportation costs. The high percentage use of scrap
decades, a third type of steel producer has emerged that
substitutes such as DRI also allows the integrated mini-mills to
combines the strengths of both the integrated and the mini-mill
take advantage of periods of low scrap prices by procuring a
processes. These producers are referred to as “integrated mini-
wide variety of lower-cost scrap grades, which can be blended
mill producers”.
with the higher-purity DRI charge. Integrated mini-mills are
Integrated steel-making substantially dependent upon iron ore which, due to supply and
In integrated steel production, coal is converted to coke in a demand imbalances, shortening of contract durations and the
coke oven, and then combined in a blast furnace with iron ore linkage between contract prices and spot prices, have been
and fluxes to produce hot metal. This is then combined with characterized by price volatility in recent years. In addition,
scrap in a converter, which is also referred to as basic oxygen because the production of direct reduced iron involves the use
furnace ("BOF"), to produce raw or liquid steel. Once produced, of significant amounts of natural gas, integrated mini-mills are
the liquid steel is metallurgically refined and then transported to more sensitive to the price of natural gas also than are mini-mills
a continuous caster for casting into a slab, bloom or billet or cast using scrap.
directly as ingots. The cast steel is then further shaped or rolled
Key steel products
into its final form. Various finishing or coating processes may
Steel-makers primarily produce two types of steel products: flat
follow this casting and rolling. Recent modernization efforts by
products and long products. Flat products, such as sheet or
integrated steel producers have focused on cutting costs
plate, are produced from slabs. Long products, such as bars,
through eliminating unnecessary production steps, reducing
rods and structural shapes, are rolled from blooms and/or billets.
manning levels through automation, and decreasing waste
generation. Integrated mills are substantially dependent upon Flat products
iron ore and coking coal which, due to supply and demand Slab. A slab is a semi-finished steel product obtained by the
imbalances, shortening of contract durations and the linkage continuous casting of steel or rolling ingots on a rolling mill and
cutting them into various lengths. A slab has a rectangular
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cross-section and is used as a starting material in the production Tinplate. Tinplate is a light-gauge, cold-rolled, low-carbon steel
process of other flat products (e.g., hot-rolled sheet, plates). usually coated with a micro-thin layer of tin. Tinplate is usually
Slabs are typically between 200 and 250mm thick. between 0.14 millimeters and 0.84 millimeters thick and offers
particular advantages for packaging, such as strength,
Hot-rolled sheet. Hot-rolled sheet is minimally processed steel workability, corrosion resistance, weldability and ease in
that is used in the manufacture of various non-surface critical decoration. Food and general line steel containers are made
applications, such as automobile suspension arms, frames, from tinplate.
wheels, and other unexposed parts in auto and truck bodies,
agricultural equipment, construction products, machinery, Electrical steels. There are two principal types of electrical steel:
tubing, pipe and guard rails. All flat-rolled steel sheet is initially non-grain oriented fully processed steels and non-grain oriented
hot-rolled, a process that consists of passing a cast slab through semi-processed steels. Non-grain oriented fully processed
a multi-stand rolling mill to reduce its thickness to typically steels are iron-silicon alloys with varying silicon contents and
between 2 and 25 millimeters, depending on the final product. have similar magnetic properties in all directions in the plane of
Flat-rolled steel sheet that has been wound is referred to as the sheet. They are principally used for motors, generators,
“coiled”. Alternatively, hot-rolled sheet can be produced using alternators, ballasts, small transformers and a variety of other
the thin slab casting and rolling process, where the hot-rolled electromagnetic applications. A wide range of products,
sheet thickness produced can be less than one millimeter. This including a newly developed thin gauge material for high
process is generally used in a flat products mini-mill, but some frequency applications, are available. Non-grain oriented semi-
integrated examples exist as well. processed steels are largely non-silicon alloys sold in the not
finally annealed condition to enhance punchability. Low power
Cold-rolled sheet. Cold-rolled sheet is hot-rolled sheet that has loss and good permeability properties are developed after final
been further processed through a pickle line, which is an acid annealing of the laminations.
bath that removes scaling from steel’s surface, and then
successively passed through a rolling mill without reheating until Long products
the desired gauge, or thickness, and other physical properties Billets/Blooms. Billets and blooms are semi-finished steel
have been achieved. Cold-rolling reduces gauge and hardens products. Billets generally have square cross-sections up to 180
the steel and, when further processed through an annealing millimeters by 180 millimeters, and blooms generally have
furnace and a temper mill, improves uniformity, ductility and square or rectangular cross-sections greater than 180
formability. Cold-rolling can also impart various surface finishes millimeters by 180 millimeters. These products are either
and textures. Cold-rolled steel is used in applications that continuously cast or rolled from ingots and are used for further
demand higher surface quality or finish, such as exposed processing by rolling to produce finished products like bars, wire
automobile and appliance panels. As a result, the prices of cold- rod and sections.
rolled sheet are higher than the prices of hot-rolled sheet.
Typically, cold-rolled sheet is coated or painted prior to sale to Bars. Bars are long steel products that are rolled from billets.
an end-user. Merchant bar and reinforcing bar (rebar) are two common
categories of bars. Merchant bars include rounds, flats, angles,
Coated sheet. Coated sheet is generally cold-rolled steel that squares, and channels that are used by fabricators to
has been coated with zinc, aluminum or a combination thereof manufacture a wide variety of products such as furniture, stair
to render it corrosion-resistant and to improve its paintability. railings, and farm equipment. Rebar is used to strengthen
Hot-dipped galvanized, electro-galvanized and aluminized concrete in highways, bridges and buildings.
products are types of coated sheet. These are also the highest
value-added sheet products because they require the greatest Special bar quality (“SBQ”) steel. SBQ steel is the highest
degree of processing and tend to have the strictest quality quality steel long product and is typically used in safety-critical
requirements. Coated sheet is used for many applications, often applications by manufacturers of engineered products. SBQ
where exposed to the elements, such as automobile exteriors, steel must meet specific applications’ needs for strength,
major household appliances, roofing and siding, heating and air toughness, fatigue life and other engineering parameters. SBQ
conditioning equipment, air ducts and switch boxes, as well as steel is the only bar product that typically requires customer
in certain packaging applications, such as food containers. qualification and is generally sold under contract to long-term
customers. End-markets are principally the automotive, heavy
Plates. Plates are produced by hot-rolling either reheated slabs truck and agricultural sectors, and products made with SBQ
or ingots. The principal end uses for plates include various steel include axles, crankshafts, transmission gears, bearings
structural products such as for bridge construction, storage and seamless tubes.
vessels, tanks, shipbuilding, line pipe, industrial machinery and
equipment.
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Wire rods. Wire rod is ring-shaped coiled steel with diameters products crucial to the Company's steel operations
ranging from 5.5 to 42 millimeters. Wire rod is used in the such as refractory and lime (in partnership with
automotive, construction, welding and engineering sectors. companies who are leaders in these domains), while
keeping the cost under control;
Wire products. Wire products include a broad range of products
produced by cold reducing wire rod through a series of dies to • Exploiting its global purchasing reach, pursuing the
improve surface finish, dimensional accuracy and physical lowest unit price available based on the principles of
properties. Wire products are used in a variety of applications total cost of ownership and value-in-use through
such as fasteners, springs, concrete wire, electrical conductors aggregated purchasing, supply chain and consumption
and structural cables. optimization; and
• Leveraging local and low cost advantages on a global
Structural sections. Structural sections or shapes are the scale.
general terms for rolled flanged shapes with at least one
dimension of their cross-section of 80 millimeters or greater. ArcelorMittal’s priority is to optimize output and production from
They are produced in a rolling mill from reheated blooms or its existing sources focused mainly on iron ore.
billets. Structural sections include wide-flange beams, bearing
ArcelorMittal is a party to contracts with other mining companies
piles, channels, angles and tees. They are used mainly in the
that provide long-term, stable sources of raw materials. The
construction industry and in many other structural applications.
Company plans to extend its largest iron ore supply contracts
Rails. Rails are hot-rolled from a reheated bloom. They are used with Vale (which currently expires in 2024) to cover its
mainly for railway rails but they also have many industrial requirements for the EU units and for its Tubarao steelmill
applications, including rails for construction cranes. (ArcelorMittal Pecém, ArcelorMittal Brasil, being covered by a
specific long-term agreement). ArcelorMittal's principal
Seamless tubes. Seamless tubes have outer dimensions of international iron ore suppliers include Vale in Brazil,
approximately 25 millimeters to 508 millimeters. They are Luossavaara-Kirunavaara AB in Sweden, Baffinland Iron Mines
produced by piercing solid steel cylinders in a forging operation Corporation ("BIM") in Canada, IOC (Rio Tinto Ltd.) in Canada,
in which the metal is worked from both the inside and outside. Samarco in Brazi, Anglo-American (Sishen in South Africa and
The final product is a tube with uniform properties from the Minas Rio in Brazil), Metinvest in Ukraine.
surface through the wall and from one end to the other.
ArcelorMittal’s principal coal suppliers include the BHP Billiton
Steel sheet piles. Steel sheet piles are hot rolled products used Mitsubishi Alliance (“BMA”), Anglo Coal, Peabody, Glencore in
in civil engineering for permanent and temporary retaining Australia, Contura and Warrior in the United States, Teck Coal in
structures. Main applications are the construction of quay walls, Canada, and JSW in Poland.
jetties, breakwaters, locks and dams, river reinforcements and
channel embankments, as well as bridge abutments and ArcelorMittal believes that its portfolio of mining assets and long-
underpasses. Temporary structures like river cofferdams are term supply contracts can play an important role in preventing
made with steel sheet piles. A special combination of H beams disruptions in the production process. (see “Operating and
and steel sheet piles are sometimes used for the construction of financial review—Key factors affecting results of operations—
large container terminals and similar port structures. Raw materials”).

Welded pipes and tubes. Welded pipes and tubes are Iron ore
manufactured from steel sheet that is bent into a cylinder and ArcelorMittal sources significant portions of its iron ore needs
welded either longitudinally or helically. from its own mines in Ukraine, Bosnia, Canada, Mexico, Liberia
and Brazil, and, before the sale of ArcelorMittal Temirtau on
Mining products December 7, 2023, in Kazakhstan. Several of ArcelorMittal’s
ArcelorMittal’s principal mining products for steel operations steel plants also have in place off-take arrangements with
include iron ore and metallurgical coal (on December 7, 2023, suppliers located near its production facilities.
ArcelorMittal divested its coal operations following the sale of
ArcelorMittal Temirtau). For further information on Mining segment iron ore production,
see “Operating and financial review—Operating results”. For
ArcelorMittal’s mining and raw materials supply strategy further information on each of ArcelorMittal’s principal iron ore
consists of: mining operations including total mining production of iron ore
and coal, see “Properties and capital expenditures—Property,
• Acquiring and expanding production of raw materials, plant and equipment” and "Properties and capital expenditures
in particular iron ore but as well some other specific

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—Property, plant and equipment— Mineral reserves and contractual mix of “all-in” bilateral supply and direct access to
resources". the market, ArcelorMittal sources its natural gas requirements
under the prevailing mix of oil-based pricing systems or
Metallurgical coal European short term/spot-indexed supply contracts. The
As with iron ore, prior to sale of ArcelorMittal Temirtau on remainder of ArcelorMittal’s natural gas consumption is
December 7, 2023, ArcelorMittal sourced a percentage of its generally sourced from regulated markets.
metallurgical coal from its own coal mines in Kazakhstan. The
Company’s mines in Kazakhstan supplied substantially all of the Industrial gases
requirements for the steelmaking operations at ArcelorMittal Most of ArcelorMittal’s industrial gas requirements are produced
Temirtau. and supplied under long-term contracts with various suppliers in
different geographical regions.
For further information on metallurgical coal mining production,
see "—Property, plant and equipment— Mineral reserves and Coke
resources". ArcelorMittal has its own coke-making facilities at most of its
integrated mill sites, including in Bosnia, Canada, Mexico,
Other raw materials and energy Brazil, Spain, France, Germany, Belgium, Poland, South Africa
Metallics (scrap) and Ukraine. While ArcelorMittal meets most of its own coke
ArcelorMittal procures the majority of its scrap requirements requirements, certain of ArcelorMittal’s operating subsidiaries
locally and regionally, optimizing transport costs. Typically, scrap buy coke from mostly domestic or regional sources to optimize
purchases are made in the spot market on a monthly/weekly cost savings from transport efficiencies, and certain of its
basis or with short-term contracts. subsidiaries occasionally sell excess coke at market prices to
third parties. The remainder of the spot purchases of coke are
Alloys
sourced from China, the U.S., Japan, Australia and Colombia.
ArcelorMittal purchases its requirements of bulk and noble
alloys from a number of global, regional and local suppliers on Shipping
contracts that are linked to generally-accepted indices or ArcelorMittal Shipping ("AM Shipping") provides ocean
negotiated on a quarterly basis. transportation solutions to ArcelorMittal’s manufacturing
subsidiaries and affiliates. AM Shipping determines cost-efficient
Base metals
and timely approaches for the transport of raw materials, such
The majority of the Company’s base metal needs, including
as iron ore, coal, coke and scrap, and semi-finished and finished
zinc, tin, aluminum and nickel are purchased under annual
products. AM Shipping is also responsible for providing shipping
volume contracts. Pricing is based on the market-accepted
services to the Company’s sales organizations. It provides
indices. Material is sourced from both local and global
complete logistics solutions from plants to customer locations
producers.
using various modes of transport.
Electricity
In 2023, AM Shipping arranged transportation for approximately
ArcelorMittal generally procures its electricity through tariff-
49.19 million tonnes of raw materials and about 7.31 million
based systems in regulated areas such as parts of the United
tonnes of finished products. The key objectives of AM Shipping
States and South Africa, through direct access to markets in
are to ensure cost-effective and timely shipping services to all
most of its European mills or through bilateral contracts
units. AM Shipping also acts as the coordinator for Global
elsewhere. The duration of these contracts varies significantly
Chartering Ltd., the Company's joint venture with DryLog Ltd., a
depending on the area and type of arrangement.
Monaco based shipping company.
For integrated steel mills, plant off-gases from various process
Purchasing
steps are utilized to generate a significant portion of the plant’s
ArcelorMittal has implemented a global procurement process for
electricity requirements and lower the purchase volumes from
its major procurement requirements, including raw materials,
the grid. This is either produced by the plant itself or with a
capital expenditure items, energy and shipping. ArcelorMittal’s
partner in the form of a co-generation contract.
centralized procurement teams also provide services such as
Natural gas optimization of contracts and the supply base, logistics and
ArcelorMittal procures much of its natural gas requirements for optimizing different qualities of materials suitable for different
its Canadian and Mexican operations from the natural gas spot plants and low cost sourcing.
market or through short-term contracts entered into with local
By engaging in these processes, ArcelorMittal seeks to benefit
suppliers, with prices fixed either by contract or tariff-based spot
from economies of scale in a number of ways, including by
market prices. For its European and Ukrainian operations, with a

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establishing long-term relationships with suppliers that For some global industries with customers in more than one of
sometimes allow for advantageous input pricing, pooling its the geographical areas that ArcelorMittal serves, the Company
knowledge of the market fundamentals and drivers for inputs has established customized sales and service functions. This is
and deploying specialized technical knowledge. This enables particularly the case for the automotive industry. Sales through
ArcelorMittal to achieve a balanced supply portfolio in terms of this channel are coordinated at the Group level with respect to
diversification of sourcing risk in conjunction with the ability to contract, price and payment conditions.
benefit from a number of its own raw materials sources.
Marketing
ArcelorMittal has institutionalized the “total cost of ownership” Marketing follows the sales activity very closely and is by
methodology as its way of conducting its procurement activities preference executed at the local level. In practice, this leads to a
across the Group. This methodology focuses on the total cost of focus on regional marketing competencies, particularly where
ownership for decision making, with the goal of lowering the there are similarities among regional markets in close
total cost of production through minimization of waste, improved geographical proximity. Local marketing provides guidance to
input material recovery rates and higher rates of recycling. sales on forecasting and pricing. At the global level, the
objective is to share marketing intelligence with a view towards
Sustainability principles are embedded into ArcelorMittal general identifying new opportunities, either in new products or
procurement conditions, purchasing contracts, in the onboarding applications, new product requirements or new geographical
process and supplier performance management in the area of demand. Where a new product application is involved, the in-
safety, health, environment, human rights, and employee house research and development unit of ArcelorMittal is
relations. involved in developing the appropriate products.

Sales and marketing An important part of the marketing function at ArcelorMittal is to

In 2023, ArcelorMittal sold 55.6 million tonnes of steel products. develop short-range outlooks that provide future perspectives on
the state of market demand and supply. These outlooks are
Sales shared with the sales team in the process of finalizing the sales
The majority of steel sales from ArcelorMittal are destined for strategy for the immediate future and with senior management
domestic markets. For these domestic markets, sales are when market conditions call for production adjustments.
usually approached as a decentralized activity that is managed
either at the business unit or at the production unit level. For Globally, sales and marketing activities are coordinated to
certain specific markets, such as automotive, there is a global ensure a harmonized approach to the market. The objective is
approach offering similar products manufactured in different to provide similar service experiences to all customers of
production units around the world. In instances where ArcelorMittal in each market.
production facilities are in relatively close proximity to one
another, and where the market requirements are similar, the Intellectual property
sales function is aggregated to serve a number of production ArcelorMittal owns and maintains a patent portfolio covering
units. In the EU and in South America, ArcelorMittal owns a processes and steel products, including uses and applications
large number of service and distribution centers. Depending on that it creates, develops and implements in territories throughout
the level of complexity of the product, or the level of service the world. Such patents and inventions primarily relate to steel
required by the customer, the service center operations form an solutions with new or enhanced properties, as well as new
integral part of the supply chain to ArcelorMittal’s customers. technologies that generate greater cost-efficiencies.
Distribution centers provide access to ArcelorMittal’s products to
smaller customers that cannot or do not want to buy directly ArcelorMittal also owns trademarks, both registered and
from the operating facility. unregistered, relating to the names and logos of its companies
and the brands of its products. ArcelorMittal has policies and
The Group prefers to sell exports through its international systems in place to monitor and protect the confidentiality of its
network of sales agencies to ensure that all ArcelorMittal know-how and proprietary information. The Company applies a
products are presented to the market in a cost-efficient and general policy for patenting selected new inventions, and its
coordinated manner. committees organize an annual patent portfolio screening by
individuals from the Company’s R&D and business sectors in
Sales are executed at the local level, but are conducted in order to optimize the global efficiency of the Company’s patent
accordance with the Group’s sales and marketing and code of portfolio. The Company’s patent portfolio includes more than
conduct policies. 12,870 patents and patent applications, mostly recent and
medium-term, for more than 831 patent families, with 103
inventions newly-protected in 2023. Because of this constant
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innovation, the Company does not expect the lapse of patents European Commission expects that, once adopted and applied,
that protect older technology to materially affect current the new law will more effectively limit polluting emissions from
revenue. industrial installations. The operators of industrial installations
will need to develop transformation plans to achieve the EU's
In addition to its patent portfolio, ArcelorMittal is constantly 2050 zero pollution, circular economy, and decarbonization
developing technical know-how and other unpatented goals. The updated law will focus on resource use performance
proprietary information related to design, production process, levels, as well as lower chemical pollution through requirements
decarbonization solutions for steel production and use of high for a reduced use of toxic chemicals. The new EU Industrial
quality steel products, leading to development of new Emissions Portal will enhance public access to information
applications or to improvement of steel solutions proposed to its related to industrial emissions. The European Parliament and
customers, such as the ones aiming at weight reduction for the Council must formally adopt the revised IED and the new
vehicles. ArcelorMittal has also been granted licenses for Industrial Emissions Portal Regulation in line with the agreement
technologies developed by third parties in order to allow it to reached, and then the text will be formally adopted, tentatively
propose comprehensive steel solutions to customers. by early 2024.
ArcelorMittal is not aware of any pending lawsuits alleging
infringement of others’ intellectual property rights that could Two different regulations will impact ArcelorMittal in the supply
materially harm its business. chain, as described below.

Government regulations First, in Germany, the German Supply Chain Due Diligence Act
ArcelorMittal’s operations are subject to various regulatory 2022 ("Lieferkettensorgfaltspflichtengesetz") intends to improve
regimes in the regions in which it conducts its operations. The international human rights by defining requirements for
following is an overview of the principal features of the companies for responsible supply chain management. This law
Company's regulatory regimes, as of December 31, 2023, that provides a legal framework for fulfilling human rights due
affect or are likely to affect the Company's operations. diligence obligations and requires that German companies
undertake due diligence in their supply chains and motivate their
See also “Introduction—Risk factors and Control” and note 9.3 contract partners abroad to protect internationally recognized
to ArcelorMittal’s consolidated financial statements. human rights and environmental standards. ArcelorMittal
implemented measures in 2023 to fully comply with this new
Environmental laws and regulations regulation which came into force in January 2023, among them,
ArcelorMittal’s operations are subject to a broad range of laws, revising policies and designing due diligence systems for its
directives and regulations relating to air emissions, surface and supply chain.
groundwater protection, wastewater storage, treatment and
discharges, the use and handling of hazardous or toxic Second, in December 2022, the European Council adopted its
materials, waste management, recycling, treatment and disposal negotiating position and general approach on the European
practices, the remediation of environmental contamination, the Commission’s proposal for the CS3D. In December 2023, a
protection of soil, biodiversity and ecosystems or rehabilitation "trialogue" deal on the CS3D was announced. This deal
(including in mining). represents a provisional political agreement. One of the main
goals of the CS3D is to establish a framework of human rights
As environmental laws and regulations in the European Union obligations businesses should respect in their operating
(“EU”) stemming from the Green Deal and other jurisdictions environments and value chains by identifying, preventing,
continue to become more stringent, ArcelorMittal expects to mitigating, and accounting for their adverse human rights, and
spend substantial resources, including operating and capital environmental impacts, including by having adequate
expenditures, to achieve or maintain ongoing compliance. governance, management systems, and measures in place to
Further details regarding specific environmental proceedings these ends. The proposal aims to foster sustainable and
involving ArcelorMittal, including provisions to cover responsible corporate behavior throughout global value chains.
environmental remedial activities and liabilities, Companies will be required to identify and, where necessary,
decommissioning and asset retirement obligations are described prevent, end, or mitigate adverse impacts of their activities on
in note 9.1 to ArcelorMittal’s consolidated financial statements. human rights and the environment. ArcelorMittal is preparing
itself by putting policies in place and updating its current ones;
On November 29, 2023, a provisional agreement on the IED
assessing risks by identifying them with regards to negative
was reached between the European Parliament and the
impacts on human rights within the Company's value chain;
Council. The revised Directive will require stricter rules to define
dealing with negative impacts by taking preventive measures to
limits and permit requirements as well as tighter compliance and
minimize and remedy potential impacts; following up on the
control rules with additional enforcement provisions. The

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progress of these measures; communicating the results to its (“NDC”) commits the country to reduce GHG emissions until
stakeholders and setting up appropriate complaint mechanisms. 2030. Plans to conclude coal mining in a socially responsible
manner have been launched, accompanied by efforts to improve
Environmental requirements impacting industrial operations are the energy efficiency of buildings. Ukraine has also made
also becoming more stringent in various jurisdictions. substantial progress in partially liberalizing gas tariffs and
reducing environmentally harmful fossil-fuel subsidies. The
In this regard, in 2023, the Company has approved 26 multi-
country is also establishing comprehensive systems to measure
year projects with identified environmental benefits and involving
progress in implementing environmental policies and making the
capital expenditures of $291 million; and 46 projects identified
Ukrainian economy “greener”. International partners, including
with energy benefits, involving capital expenditures of $1,716
the OECD, provide policy support to Ukraine's efforts to shift to
million (including renewable energy projects in India). This also
a greener economy. As part of the IED implementation in
includes 23 projects specifically targeting decarbonization
Ukraine, the industrial emissions law will introduce a concept of
involving capital expenditures of $729 million. Actual capital
Best Available Techniques (“BATs”), mandatory for application
expenditures on decarbonization initiatives for the year ended
by the largest facilities. Most large industrial companies have
December 31, 2023 amounted to $0.2 billion and are expected
been building their investment strategies upon BATs while
to increase to between $0.3-$0.6 billion (net of government
planning modernization or new construction projects. In October
support) in 2024. See also further information on key
2023, the Law on the National Register of Emissions and
environmental projects in “— Sustainable development”,
Transfer of Pollutants, determining the maximum openness of
"Introduction — Sustainable development highlights — striving
information and interaction with the public of enterprises-
to be a leader in the decarbonization of the steel industry" and
pollutants, came into force. During 2023, Ukraine adopted
“Properties and Capital expenditures — Capital expenditures”.
several legislative acts related to waste management, including
Air emissions the Law of Ukraine on Waste Management, the Procedure for
In Canada, Environment and Climate Change Canada Development of Regional Waste Management Plans, and the
(“ECCC”), a department of the Government of Canada, updated Resolution of the Cabinet of Ministers of Ukraine on Some
the Base-Level Industrial Emissions Requirements (“BLIERs”) Issues of Declaration of Waste Status Termination. In addition,
under the federal Air Quality Management System, resulting in the Resolution of the Cabinet of Ministers of Ukraine approved
the need for substantial investments to comply with emission the Procedure of Waste Classification and the National List of
regulations. Provincial regulations in Ontario and Quebec will Wastes. Waste is classified as a group, subgroup and type of
also require additional emissions reductions. waste taking into account: source of origin of waste; properties
that make waste hazardous; presence of components
In Ontario, the BLIER requires ArcelorMittal Dofasco to install a containing hazardous substances in the waste, exceeding the
full coke oven gas desulphurization by the end of December concentration limits of which may lead to the recognition of the
2025. In 2023, ArcelorMittal Dofasco received an exemption waste as hazardous. Regarding implementation, Ukraine
from the ECCC due to its ongoing decarbonization efforts. approved the procedure for maintaining the National Pollutant
Currently, on a plant-wide basis, ArcelorMittal Dofasco’s facility Release and Transfer Register, the forms of the Protocol on
is meeting its BLIERs objective. Moreover, the decarbonization violation by the operator of the requirements of the legislation
project will impact ArcelorMittal Dofasco’s overall Nitrogen Oxide regarding registration of pollutant release and transfer and
(“NOx”) emissions. waste, as well as resolutions on consideration of cases on
offenses. To provide public information on emissions of
In Quebec, pursuant to the Quebec Clean Air Regulation
pollutants into the atmospheric air, the Ukrainian government
(Règlement sur l'assainissement de l'atmosphère) regulating air
approved in January 2023 the procedure for submission and
emissions, a post combustion chamber was built at AMLPC’s
publicizing the enterprise's report on compliance with the
Contrecoeur East facility. Additionally, the existing canopy hood
conditions of the emission permit and implementation of
configuration was modified and put into operation. Further measures to control compliance with the established maximum
analysis continues for the modification of the canopy at the
permissible emissions of pollutants. On March 28, 2023,
Contrecoeur West facility to improve dust capturing from 45% to
Ukraine approved a procedure for the implementation of
75%, at an estimated cost of around CAD$6 million.
mandatory automated systems for the control of pollutant
In 2021, the Ukrainian Parliament adopted the Strategy of the emissions. This procedure defines the mechanism for
State Environmental Policy of Ukraine for the Period until 2030 implementing mandatory automated systems for controlling the
and its Action Plan 2023-2025, that set more ambitious targets volume and parameters of pollutant emissions emitted into the
for pollution reduction and more efficient use of natural atmospheric air by organized stationary sources.
resources. The updated Nationally Determined Contribution

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In March 2023, Ukraine enacted the Law on Amendments to use of national waters effective from July 1, 2022, CONAGUA
Environmental Monitoring Legislation, expanding environmental allowed the submission by the end of 2023 of a milestone plan
information support and introducing administrative penalties for to achieve compliance with these rules. This extension was
non-compliance. The law, effective six months after the end of granted primarily due to a shortage of authorized companies
martial law (in force since February 24, 2022) resulting from the capable of implementing the required changes and installing
Russian invasion, mandates monitoring of all environmental new continuous monitoring measurement systems. However,
components. Simultaneously, the Ukrainian Ministry of considering the technical complexity of the works required on
Environment is formulating a national plan to reduce emissions the 60-inch water pipe, an amended milestone program was
from industrial enterprises. Under Ministry Order No. 174 (March submitted to CONAGUA to complete the implementation by
27, 2023), current emission standards for specified industrial September 2024.
processes are under review, considering wartime economic
challenges and enterprise modernization difficulties. Mining activities
In Liberia, ArcelorMittal holds a mining concession, inclusive of
Water 250 kilometers of rail and port facilities. The Environment
On August 7, 2023, Ukraine's Law on Wastewater Disposal and Protection Agency (“EPA”) in Liberia has heightened its
Treatment took effect, aiming to provide citizens with quality enforcement of environmental standards, supported by its
sewage services and address environmental concerns. The law dedicated laboratories. The nearby presence of ArcelorMittal
aligns with EU standards, specifically Council Directive 91/271/ Liberia (“AML”) installations has fueled local communities'
EEC, and outlines requirements for local wastewater environmental awareness, increasing pressure on AML from
regulations. The implementation follows an approved three-year stakeholders.
action plan.
Guided by the Environmental Protection Agency Act (2002) and
In South Africa, the National Water Act of 1998 is undergoing the Environment Protection and Management Law (2002),
amendment, among which the Draft Water Amendment Bill comprehensive Environmental Impact Assessments (“EIAs”) are
seeks in particular to further provide for the protection of water mandatory for projects affecting the environment. In adherence
source areas, the reallocation of water, and the enactment of to these regulations, ArcelorMittal has developed an
regulations and additional controlled activities. The proposed Environmental and Social Standards Manual ("SSM"), approved
new definition of "waste," which expanded its scope by including by the Liberian EPA, governing all activities within the existing
any substance with no further use for the manufacturer, was Liberia mining project. The SSM is regularly updated with
endorsed by the National Council of Provinces Select external consultants' input, and the SSM surpasses local
Committee without public discussion. This definition, along with environmental requirements. ArcelorMittal's mining concession
related terms like "trade in" and "commercial value," was falls within the purview of the National Forestry Reform Law
challenged by various parties, including ArcelorMittal South (2006), the National Forestry Law (2000), and the Act Creating
Africa, in a case involving The South African Iron and Steel the Forestry Development Authority (2000). These laws govern
Institute. The argument was that these definitions should be both commercial and community use of forests, and some
declared unconstitutional as they were introduced after the territories within the concession are subject to these regulations.
parliamentary public participation process had concluded, The Community Rights Law regarding Forest Lands (2009) has
violating the duty to reintroduce substantial amendments for notably empowered communities in forest management. The
public input. The Constitutional Court agreed with this Phase 2 project (“Concentrator Ore Project”) in Liberia
perspective. showcases ArcelorMittal's environmental commitment, with a
substantial environmental offset program and an extensive mine
In March 2022, Mexico published a new standard on wastewater closure plan, potentially exceeding $100 million. The stringent
discharges, reducing the maximum permissible limits and conditions attached to existing environmental permits reflect the
introducing new parameters for quarterly monitoring and Company's dedication to sustainable operations. In 2023, all
reporting to the National Water Commission (“CONAGUA”). environmental permits were renewed, covering Yuelliton mining
ArcelorMittal internally defined a preliminary action plan to activities, TSF construction, a new sewage plant, and the
enhance wastewater quality discharges in line with the rehabilitation of rail and port facilities, has elevated requirements
requirement of the standard through operational controls. In for sediment control, water discharge, and biodiversity
April 2023, with prior authorization from CONAGUA, conservation. In tandem, ArcelorMittal Liberia has initiated a
ArcelorMittal submitted an action plan outlining milestones to climate change risk assessment and is participating in the TNFD
bring wastewater discharges in compliance with the new studies. These initiatives underscore the Company's proactive
standard. This program is scheduled to conclude in February approach to potential environmental impacts and its
2027, with progress reports required to update on the program’s commitment to future-proofing operations.
milestones. Concerning new rules on the measurement for the
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In Mexico, due to the recent reform of the National Mining ("SO2") were identified, and a draft agreement was prepared,
Regulation ("NMR"), several significant changes were included but there has been no further progress as of February 2024.
in the regulation, which includes changes in relevant
environmental laws, the national water law, and waste In the province of Quebec, the renewal requests for depollution
management law. These changes are primarily related to the attestations for AMMC's Mont Wright operations, Fire Lake, and
possibility of using water within the mining process for iron ore Port-Cartier pellet plant are currently in the analysis stage by
transportation. Constitutional claims against the NMR were environmental authorities. They aim to apply the same
submitted by ArcelorMittal México, and final rulings are expected standards to all mines. These permits establish targets for
over the course of 2024. water, air, soil, and waste management, as well as the
monitoring and reporting frequencies and requirements for each
In Brazil, regulations from the National Mining Agency (“ANM”) target.
primarily aim to simplify procedures for requesting research or
mining, revising existing standards concerning mining Furthermore, the Contrecoeur West depollution attestation was
companies’ obligations related to the safety of mining dams, scheduled to be renewed in 2023; the renewal application was
including monitoring activities, compliance and operability filed in June 2023, awaiting further input from the Government.
assessments, and dam emergency action plans. Additionally, Also, starting January 1, 2024, royalty rates will be payable for
the Mine Closure Plan and decommissioning requests (ANM contaminated soils for landfilling (CAD$10/t) or treating (CAD$5/
Resolution No. 68, April 30, 2021) were standardized. As from t).
January 2023, the National Mining Agency expanded the range
Quebec’s government expanded the scope of the regulation
of infractions and associated fines, now calculated as a
related to compensation for adverse effects on wetlands and
percentage of mineral production without limitation.
bodies of water. It will apply to projects conducted in Port-
Furthermore, environmental standards for tailings disposal and
Cartier, Mont Wright, and Fire Lake and might extend to
dams have become more stringent.
AMLPC’s future projects.
In 2023, noteworthy developments in Brazil include: (i) Federal
Also in Quebec, the regulation respecting royalties payable for
Law No. 11.310/2022, addressing inspection activities and
the use of water was amended to increase, as of January 1,
federal governance of the National Dam Safety Policy,
2024, the royalty rates from CAD$2.5 per million liters (“CAD$/
establishing the Interministerial Dam Safety Committee; (ii)
ML”) of water to CAD$35/ML, and from CAD$70/ML to CAD$
Ordinance No. 525/2023 of the Ministry of the Environment and
150/ML. The applicable rate will vary according to the use of the
Climate Change, establishing the National Commission for
resource. These rates will then be indexed by 3% per year.
Federal Extractive Reserves – CONAREX; and (iii) Ordinance
No. 61/2023 of the Ministry of Mines and Energy, establishing The ECCC, the Iron Ore Company of Canada, and AMMC have
the Management Protocol and Crisis Management Committee entered into an environmental performance agreement effective
for the prevention and safety of electricity, fuel, and mining from January 5, 2018 until June 1, 2026. The agreement is
installations. designed to facilitate the implementation of BLIERs developed
for the iron ore pellet sector. Specifically, it outlines the
The State of Minas Gerais in Brazil adopted several norms
composition, timelines, and objectives of the NOx Working
regarding dam safety in 2023. These include the State Policy for
Group. The agreement aims to ensure compliance with BLIERs
People Affected by Dams, guidelines for presenting the
limits for Particulate Matter ("PM") 2.5 and SO2 while also
Emergency Action Plan, rules for accrediting independent
overseeing the implementation of the approach to studying NOx.
external auditors for technical safety audits under the State
Policy for Dam Safety, as well as the process for registering and Climate change
classifying dams subject to the State Policy for Dam Safety. In December 2015, 195 countries participating in the United
Notable updates in 2023 include Resolution No. 3.181/2022, Nations Framework Convention on Climate Change (“UNFCC”),
which established guidelines for presenting the Emergency at its COP21 held in Paris, adopted a global agreement on the
Action Plan for dams covered by Law No. 23.291/2019. It also reduction of climate change (the “Paris Agreement”). The Paris
determined procedures for those responsible for these dams Agreement sets a goal to limit the increase in the global average
during emergencies and outlined measures to be taken in the temperature to well below 2 degrees Celsius and pursues efforts
event of an incident, accident, or rupture. to limit the increase to 1.5 degree Celsius, to be achieved by
getting global GHG emissions to peak as soon as possible. The
In Canada, the Company is in negotiations for depollution
Paris Agreement consists of two elements: first, a legally binding
attestations applicable to AMMC facilities. Specifically in the
commitment by each participating country to set an emissions
mining sector, some objectives for dust, NOx, and Sulfur Dioxide
reduction target, referred to as nationally determined

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contributions (“NDCs”), with a review of the NDCs that could expected to further reduce current benchmark values, although
lead to updates and enhancements every five years beginning the agreed approach will prevent a large disruptive decrease of
in 2023 (Article 4), and second, a transparency commitment the hot metal benchmark. Still, the resulting shortage in free
requiring participating countries to disclose in full their progress allocation levels would put the European steel industry at a
(Article 13). Most countries have issued their intended NDCs. significant disadvantage versus global competition (see note 9.1
to the consolidated financial statements). To prevent such
The United Nations Climate Change Conference COP 28 disadvantages, a CBAM has been established for a limited
reached a deal for transitioning away from fossil fuels in energy number of sectors, including steel, with a transitional period that
systems, in a just, orderly, and equitable manner, as well as on started in October 2023 and runs until the end of December
tripling renewable energy capacity globally by 2030, speeding 2025, with the initiation of CBAM payments in 2026. In the case
up efforts to reduce coal use, and accelerating technologies of steel, only direct emissions will be covered, at least until
such as CCUS that can decrease emissions of hard-to-abate 2025, allowing access to indirect cost compensation. On the
industries. By 2025, countries must present their updated NDCs other hand, free allocation to covered sectors will be
aimed at being aligned with the 1.5 degree Celsius limit. progressively phased out as follows: 2026: 97.5%, 2027: 95%,
2028: 90%, 2029: 77.5%, 2030: 51.5%, 2031: 39%, 2032:
On July 14, 2021, the European Commission adopted the Fit for
26.5%, 2033: 14%, and 0% as from 2034. The agreement does
55 Package with a view to adapting climate and energy
not include a solution for exports but requires the European
legislation to the 2030 ambition set by the European Climate
Commission to prepare an assessment and report by 2025.
Law. The EU also committed internationally to its 55% reduction
Several implementing acts to supplement the CBAM regulation
target except for the Energy Taxation Directive (“ETD”), for
are still to be developed.
which the legislative process has not yet been completed.
Certain initiatives of the Fit for 55 Package have been adopted Moreover, the revised Renewable Energy Directive (“RED”) was
as of December 31, 2023, amending several pieces of adopted in November 2023, increasing the current EU-level
legislation that were already applicable to ArcelorMittal, such as target of at least 32% of renewable energy sources in the overall
the EU Emissions Trading Scheme (“EU-ETS”), the Renewable energy mix to at least 42.5% by 2030. Member States must also
Energy Directive (“RED”), the Energy Efficiency Directive collectively endeavor to increase the share of energy from
(“EED”), and Energy Taxation Directive ("ETD") and has newly renewable sources in the EU’s gross final consumption of
introduced the CBAM. Several implementation rules stemming energy in 2030 to 45%. The RED aims to deploy renewables
from the ETS and CBAM are currently under preparation. See across all sectors, particularly in sectors where progress in
also “Risk Factors and Control—Laws and regulations restricting integrating renewables had been slower.
emissions of greenhouse gases could force ArcelorMittal to
incur increased capital and operating costs and could have a Additionally, the revised Energy Efficiency Directive (“EED”)
material adverse effect on ArcelorMittal’s results of operations, raised the EU energy efficiency target, making it binding for EU
financial condition and reputation.” ArcelorMittal’s activities in countries to collectively ensure an additional 11.3% reduction in
the 27 member states of the EU are subject to the EU-ETS, energy consumption by 2030 compared to the 2020 reference
which was launched in 2005 pursuant to European Directive scenario projections. In addition, the revised Land Use, Land
2003/87/EC, relating to GHG emissions. The EU-ETS is based Use Change and Forestry (“LULUCF”) sets a target for net GHG
on a cap-and-trade principle, setting a cap on GHG emissions removals at 310 million tonnes of CO2 equivalent as a sum of
from covered installations that is then reduced over time. Within the values of the GHG net emissions and removals by Member
this cap, companies receive emission allowances which they States in 2030. The LULUCF sector is connected to all
can sell to or buy from one another as needed. The limit on the ecosystems and economic activities that rely on the land and
total number of allowances available ensures that they have a the services it provides, thus directly impacting ArcelorMittal’s
value. The EU is currently implementing its more stringent sites.
Phase 4 EU-ETS for the 2021 to 2030 period in a manner that
may require ArcelorMittal to incur additional costs to acquire Furthermore, the Eco-design for Sustainable Product Regulation
emissions allowances. In order to achieve the EU 2030 55% (“ESPR”) is a cornerstone in the European Green Deal for more
reduction ambition, the ETS requires sectors under ETS to environmentally sustainable and circular products. The new
reduce their emissions by 62%. As required by the EU Climate regulation acts as a framework and complements existing
Law, the Commission has begun to define a Europe-wide 2040 product regulation. The regulation is implemented following a
target, with scientific bodies advising a reduction of 90 to 95% of workplan through secondary legislation by Delegated Acts. The
the GHG emissions. It is expected that the Commission will Joint Research Centre (“JRC”) started in November 2023 a
present a proposal in the first quarter of 2024. Upcoming preparatory study on Iron and Steel Products as part of the new
implementation rules for trading period 4.2 (2026-2030) are Commission work plan. "Digital Product Passports" must ensure

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relevant environmental information is transferred along the Change Bill. The National Treasury is actively engaged in
supply chain on a need-to-know basis. formulating the design framework to address future penalties
associated with non-compliance to the carbon budget
GHG emissions regulations allocations.
South Africa has a comprehensive and constantly evolving
environmental regulatory framework to regulate the carbon South Africa has enacted the National Environmental Laws
footprint of the steel industry in the form of carbon pricing Amendment Bill (“NEMLAA4”), which was launched on June 24,
mechanisms and emission thresholds, as well as to address 2022, and brought into operation on June 30, 2023. Notable
climate change and decarbonization. The Carbon Tax Act to tax changes introduced by NEMLAA4 include modifications to the
carbon dioxide emissions was adopted and came into effect in rectification process prescribed under section 24G of the
2019. Following the Taxation Laws Amendments Act 20 of 2022, National Environmental Management Act (“NEMA”) and section
the Carbon Tax Act 15 of 2019 was amended in January 2023. 22A of the National Environmental Management: Air Quality Act
The amendment includes the annual carbon tax rates per tonne 39 of 2004 (“NEMAQA”) concerning the commencement of
of CO2 equivalent from 2023 until 2030 expressed in Rand activities without the required authorizations and licenses in
(“ZAR”) value. The rates of tax may be adjusted by the amount place. These changes encompass mandatory stoppage, the
announced by the Minister in the National annual budget extension of enforcement powers, and the potential extension of
contemplated in section 27(1) of the Public Finance the requirement for financial provisioning to high-impact
Management Act, 1999 (Act No.1 of 1999) in 2025 and industries.
thereafter at three-year intervals to consider the impact of
exchange rate movements on the comparability of the rate to Following the update of South Africa's NDC regarding its GHG
global carbon pricing. Although, some aspects of the carbon tax emission contributions as per the Paris Agreement
were clarified, uncertainty remains in terms of the phase-down commitments, the final Just Transition Framework for South
pace of tax-free allowances. On October 24, 2023, the Climate Africa was released in July 2022. This framework aims to guide
Change Bill (the “Bill”) successfully passed through the National the transition away from fossil-fuel-based energy towards a low-
Assembly (“NA”) and has now been forwarded to the National emissions and climate-resilient economy. The steel sector has
Council of Provinces (“NCOP”) for concurrence. A public been identified as an industry significantly affected by the
commenting process will follow before the Bill undergoes transition away from coal. Additionally, there are several
parliamentary debate, allowing for potential amendments if hydrogen and green hydrogen policy developments underway.
deemed necessary. The final step involves the Bill's approval by South Africa's next NDC update is due in 2025.
both the NA and the NCOP before it reaches the President for
The following climate change developments are not part of
assent, ultimately leading to its enactment. The timing is
legislation or regulations but are linked to the NDC and National
dependent on the NCOP concurrence process, and the timeline
Development Plan (“NDP”): The South African Just Energy
may be impacted by the National and Provincial elections in
Transition Investment Plan (“JET IP”) for the five-year period
South Africa. During the NA review process, the NA included
2023-2027, launched in 2022, lays out the scale of need and the
notable additions to the Bill, including specific offenses, outlining
investments required to achieve the decarbonization
penalties such as fines or imprisonment upon conviction for
commitments indicated in the South African NDC. This provides
failure to submit required information or for providing falsified
a perspective on the country’s fair contribution to the Paris
data in adherence to the Climate Change reporting
Agreement and the pace at which South Africa intends to reduce
requirements. Furthermore, the NA integrated critical aspects
its GHG emissions.
such as key concepts and definitions, the regulation of powers
and functions of the Presidential Climate Commission (“PCC”), The South African Department of Mineral Resources and
and the establishment of a finance mechanism to support South Energy has released the South African Renewable Energy
Africa’s climate change response. Masterplan (SAREM) for stakeholder input, aiming to align with
National Development Plan objectives. SAREM focuses on
ArcelorMittal South Africa has been granted a carbon budget for
industrializing the renewable energy value chain, fostering
the extended voluntary phase covering the five-year period from
inclusive participation in the energy transition, and contributing
January 2021 to December 2025. The mandatory carbon budget
to economic revival.
allowances are currently in the developmental phase under the
auspices of the Department of Forestry, Fisheries, and the In Canada, carbon pricing regulations have become increasingly
Environment (“DFFE”). Implementation of the Carbon Budget is stringent. For example, the Order Amending Schedule 3 to the
anticipated to commence in January 2026, aligning with the GHG Pollution Pricing Act: Statutory Orders and Regulation
initiation of Carbon Tax Phase II. Further clarity on these matters (“SOR”)/2022-210 introduces amendments to set the royalty
is anticipated following the formal enactment of the Climate amounts per tonne of GHG emitted for the years 2023 to 2030.

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As from January 1, 2022, ArcelorMittal Dofasco and Ontario resulting from the reduction in free allocation. The proceeds
industries have been regulated on carbon pricing under the from the auctioning of these emission units will be earmarked on
Ontario Emissions Performance Standards (“EPS”), transitioning behalf of these companies, to accelerate their investments in
out of the Federal output-based pricing system (“OBPS”). The their climate transition. The regulation also clarifies the
Federal government intends to ensure provincial GHG programs registration process for the GHG Cap-and-Trade System
are rigorous enough to meet Federal carbon reduction targets (“SPEDE”), as well as the terms and conditions of the Minister's
(40 - 45% lower than in 2005 by 2030). auctions and private sales.

In March 2023, Ontario published changes to the carbon tax In Quebec, at the DRI reduction plant, a test was conducted to
between 2023 and 2030, which includes (i) changes to carbon evaluate the possibility of replacing the use of natural gas with
pricing from CAD$50/t CO2e to CAD$65/t in 2023 and green hydrogen in the process. In the first test, 6.8% of the
increasing CAD$15/t annually up to CAD$170/t CO2e by 2030, natural gas was replaced by green hydrogen over a 24-hour
and (ii) changes to the stringency factors: -2.4% in 2023 and period, contributing to a significant reduction in CO2 emissions.
-1.5% annually from 2024 to 2030. AMLPC will evaluate the possibility of conducting further tests
by increasing the use of hydrogen at its reduction plant.
As part of the Ontario EPS program, the Ontario provincial
authority signaled a recognition of the significant transformation As part of Canada’s climate plan to reduce emissions and
in the steel sector as some large steel producers are expected accelerate the use of clean technologies and fuels, in June
to make the transition to clean steel production in the coming 2022, the final Clean Fuel Regulations (“CFR”) under the
years. In consideration of the changes at these facilities, Canadian Environmental Protection Act 1999 (“CEPA”) were
stringency factors would be set equal to one for the transition registered, bringing the 2017 Clean Fuel Standard (“CFS”) into
period up to 2030; thus, exemptions will be considered for first law. It came into force upon registration, except for two sections
movers in the steel sector. Final details will be provided before repealing the pre-existing Renewable Fuels Regulations
the Director's official issuance notice in the first quarter of 2024. (“RFRs”), which will come into force on September 30, 2024.
The CFS establishes lifecycle carbon intensity requirements
The development of an approach to address facility-specific separately for liquid, gaseous, and solid fuels that are used in
emissions targets for the innovative DRI facilities has been transportation, industry, and buildings. This performance-based
completed, often based on three years of performance following approach, intended to incentivize innovation, development, and
the start-up of a facility. Detailed discussions concluded in 2023, use of a broad range of lower-carbon fuels, alternative energy
and the final Director’s order is expected in the first quarter of sources, and technologies, only requires liquid fuel (e.g.,
2024. The proposed approach to address ArcelorMittal gasoline, diesel, home heating oil) suppliers to reduce the
Dofasco’s decarbonization program during the transformation carbon intensity of their fuels. Gaseous and solid fossil fuels
periods has also been developed. The final Director’s order is have been eliminated from the scope. The Regulations will
expected in March 2024. Compliance is to be achieved by increase production costs for primary suppliers, which would
reducing GHGs as well as additional first-mover considerations increase prices for liquid fuel consumers.
by the regulator.
In 2022, Brazil launched Resolution No. 433/2021 establishing
In Quebec, the 2030 Plan for a Green Economy sets a 37.5% the National Policy of the Judiciary for the Environment,
GHG emission reduction target by 2030 compared with 1990 establishing the monitoring of climate actions and mandating
levels, with the goal that Quebec reaches carbon neutrality by that indemnities for environmental damages include the impact
2050. Separate consultations by the government of Quebec are on global climate change, as well as diffuse damage to affected
underway with large GHG emitters regarding the cap-and-trade peoples and communities. In September 2023, the Plenary of
program regulation for the second and subsequent compliance the Brazilian National Council of Justice approved a Normative
periods from 2021 to 2030. Quebec completed the consultations Act recommending the adoption of a new protocol for the trial of
for the 2021 to 2023 compliance period. For the period 2024 to environmental damage actions by Brazilian courts. This aims to
2030, negotiations are still in progress to minimize the financial enhance the effectiveness of judgments in environmental cases,
impact of regulatory changes on ArcelorMittal’s operating providing guidelines on the use of evidence obtained by sensors
subsidiaries in Canada. and satellites. The focus is on preventing and combating
environmental externalities, particularly concerning climate
Furthermore, the Quebec Regulation amending the Regulation
change and collective damage.
respecting the cap-and-trade system for GHG emission rights
sets out the rules for free allocations for the period 2024-2030, Brazil has progressed in the regulation of the carbon market by
including a reduction in the level of free allocation, accompanied establishing the Interministerial Committee on Climate Change
by a mechanism for consigning part of the emission units (“CIM”) through Decree No. 11.550/2023, published in June
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2023. This committee monitors the implementation of actions purchasing renewable energy from Cammesa. From 2024
and public policies within the federal executive branch related to onwards, demand will be contracted through a private Power
the National Policy on Climate Change (“PNMC”). The decree Purchase Agreement with no additional financial impact; (ii) for
revoked the former National System for the Reduction of the Tablada Site, demand has been provided by a private PPA
Emissions of Greenhouse Gases (“SINARE”), previously since 2019, with no additional financial impact; and (iii) the
established by Decree No. 11.075/2022. annual Acindar demand is 1.3 Terawatt-hour per year.

A regulatory proposal to implement the National Carbon Market In Mexico, the federal government has initiated a
passed a vote in the senate on October 4, 2023, subject to comprehensive climate policy review, encompassing the
approval by the parliament. The proposal is based on a framework for an ETS to fulfil its commitments under the Paris
minimum emissions threshold rather than specific sectors. Agreement. On October 1, 2019, the government published
Installations emitting above 10 thousand tonnes of CO2 per year rules and principles for an emissions trading system applicable
per source or installation must report their emissions. to entities generating more than 100,000 tons of CO2 per year.
Installations emitting more than 25 thousand tonnes of CO2 per Since 2020, a pilot of the ETS has been implemented for
year, in addition to mandatory reporting, must carry out periodic ArcelorMittal México Long and Flat Segments and Services
reconciliation of obligations. The regulation would apply equally areas (“SERSIINSA”), along with other relevant companies. This
to all sectors of the economy, except for primary agricultural pilot stage concluded on December 31, 2022, and the
production which was expressly excluded. operational stage is expected to commence in 2024. New rules
are anticipated to be issued by the first quarter of 2024. During
In Brazil, noteworthy standards released in 2023 include: (i) the three-year pilot stage, ArcelorMittal México consistently
NBR ISO 14090:2023, a technical standard on adaptation to adhered to the environmental authority's ("SEMARNAT")
climate change, covering principles, requirements, and emission calculation and reporting criteria for the Emissions
guidelines; (ii) Federal Resolution No. 1/2023, approving the Trading System. ArcelorMittal's CO2 emissions reports have
Internal Regulations of the CIM; (iii) Decree No. 11.548/2023 consistently showed zero deficits. Despite the initial plan for the
establishing the national commission for reducing GHG operational stage to start in 2023, the rules remain undefined,
emissions from deforestation and forest degradation, and only proposals have been presented. Rules are expected to
conservation of forest carbon stocks, sustainable management be finalized in 2024. The authority has not officially defined
of forests, and increasing forest carbon stocks (“REDD+”); and operational stage rules, but an unofficial final proposal is
(iv) Ordinance No. 56/2022, providing for the Decarbonization expected soon.
Credit (“CBIO”) bookkeeping service.
Ukraine is progressing towards the establishment of a national
The state of Ceará published the Law No. 18,458/2023, ETS. In 2024, Ukraine aims to enact a framework law that aligns
instituting the state policy for green, sustainable hydrogen and with European carbon emission reduction standards and
its derivatives within the scope of the state of Ceará and outlines the concept of an ETS. The prerequisites for launching
creating the state council for governance and development of the ETS include the establishment of a functional system for
the production of green, sustainable hydrogen and its monitoring, reporting, and verifying greenhouse gas emissions
derivatives. (“MRV”) in Ukraine, along with the approval of an updated NDC
to the Paris Agreement.
Argentina's goal is to achieve carbon neutrality by 2050, and it
has outlined its NDCs compromises for 2030, reinforcing them ArcelorMittal closely monitors local, national, and international
through participation in COP 28. During 2023, the Argentinian negotiations, and regulatory and legislative developments, and
government established two key strategies: one for the Carbon endeavors to reduce its emissions where appropriate.
Trade Market (Resolution N° 385/2023) and another for
Hydrogen Economy Development (presented in September Health and safety laws and regulations
2023, pending official publication). ArcelorMittal’s operations are subject to a broad range of laws
and regulations relating to the protection of human health and
Additionally, the Renewable Energy Law has set mandatory safety. As these laws and regulations in the United States, the
national targets for electricity consumption from renewable EU and other jurisdictions continue to become more stringent,
energy sources: 8% in 2018; 12% in 2019/20; 16% in 2021/22; ArcelorMittal expects to expend substantial amounts to achieve
18% in 2023/24; and 20% in 2025. All energy-intensive or maintain compliance. See “Introduction—Risk Factors and
industries must contribute to these mandatory national targets, Control—Legal and regulatory risks—ArcelorMittal is subject to
but no significant impact on the Company is expected. Acindar strict environmental, health and safety laws and regulations that
has outlined its renewable energy business plan as follows: (i) could give rise to a significant increase in costs and liabilities.”
for the Villa Constitución Site, targets are being met by ArcelorMittal has established health and safety guidelines
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requiring each of its business units and sites to comply with all importer pays the difference between such dumped or
applicable laws and regulations. Compliance with such laws and subsidized price and the actual price to the government as a
regulations and monitoring changes to them are addressed duty.
primarily at the business unit level. ArcelorMittal has a clear and
strong health and safety policy, aimed at reducing on a Safeguard measures are addressed more generally to a
continuing basis the severity and frequency of accidents; particular product, irrespective of its country of origin, to protect
through its Health & Safety Council and Management domestic production against serious injury caused by
Committee, the Company reinforces the penetration of the unforeseen, sharp and sudden increase of imports.
safety culture in the Company. The effective policy outlines the
All WTO members are required to review anti-dumping duty and
commitment ArcelorMittal has made to the health and safety of
countervailing duty orders every five years to determine if they
all employees and reinforces the accountability of the local
should be maintained, revised or revoked. This requires a
management and encourages the continuous improvement in
review of whether the dumping or subsidization is likely to
health and safety performance at unit level, which permits the
continue or recur if the order/suspension agreement is revoked
Health & Safety Council and Management Committee to define
and whether a domestic industry in the country is likely to suffer
and track performance targets and monitor results from every
the continuation or recurrence of the injury within the reasonably
business unit and site. See "Business overview—Sustainable
foreseeable future if the orders are revoked. If the government
development—Health and safety" for further information.
finds dumping or subsidization and the injury is likely to continue
Foreign trade or recur, then the orders continue. In the case of safeguard
ArcelorMittal has manufacturing operations in many countries measures enduring for greater than three years, all WTO
and sells its products worldwide. In 2023, certain countries and members are required to review the imposed measures in the
communities, such as Canada, the EU, Mexico, Turkey and the mid-term of the relevant measure. After a review, safeguard
U.S. continued or launched investigations into whether to measures may be extended if they continue to be required, but
impose or continue imposing trade remedies (usually anti- the total period for the application of safeguard measures may
dumping or safeguard measures) against injury, or the threat not exceed eight years.
thereof, caused by increasing steel imports originating from
In a number of markets in which ArcelorMittal has manufacturing
various steel producing countries.
operations, it may be the beneficiary of trade actions intended to
Under both international agreements and the domestic trade address trade distortions consistent with WTO regulations, such
laws of most countries, trade remedies are available to domestic as the examples mentioned above. In other situations, certain
industries where imports are “dumped” or “subsidized” and such operations of ArcelorMittal may be a respondent to anti-dumping
imports cause injury, or a threat thereof, to a domestic industry. and countervailing duty cases and its exported products might
Although there are differences in how trade remedies are be subject to anti-dumping and countervailing duties or other
assessed, such laws have common features established in trade restrictions, for example anti-dumping duties imposed in
accordance with World Trade Organization (“WTO”) standards. 2017 by the Egyptian government against rebar imports from
Dumping involves exporting a product at a price lower than that Ukraine, Turkey and China affecting exports from ArcelorMittal
at which the same or similar product is sold in the home market operations in Ukraine.
of the exporter, or where the export prices are lower than a
USA Section 232:
value that typically must be at or above the full cost of
On March 23, 2018, after a section 232 national security
production (including sales and marketing costs) plus a
investigation with respect to steel imports, the Trump
reasonable amount for profit. Subsidies from governments
Administration imposed tariffs of 25% on steel products from all
(including, among others, grants and loans at artificially low
but a select list of countries, with a temporary suspension
interest rates) are similarly actionable under certain
applied for Canada, Mexico, Argentina, South Korea, Brazil and
circumstances. The trade remedies available are typically (i) an
the EU until May 1, 2018. Subsequently, Australia obtained a full
anti-dumping duty order where injurious dumping is found and
exemption, and imports from Argentina, Brazil and South Korea
(ii) a countervailing duty order or suspension agreement where
became subject to annual quotas. Tariffs on imports of steel
injurious subsidization is found. Normally, the duty is equal to
products from Canada and Mexico were eliminated on May 17,
the amount of dumping or subsidization that is generally
2019, which led to positive impacts in the Company’s NAFTA
imposed on the imported product (other than in the EU where
business units; imports from Canada and Mexico were
the lesser duty rule is applied). Accordingly, such orders and
suspension agreements do not prevent the importation of a
product, but rather require that either the product be priced at a
non-dumped level or without the benefit of subsidies, or that the

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monitored to identify whether imported volumes surged confirmed the measures until June 2024. On February 9, 2024,
meaningfully beyond historic levels. the European Commission initiated a review that will consider
whether or not to prolong the measures past June 2024.
On October 31, 2021, the U.S. and EU announced that they had
reached a two-year agreement to modify the section 232 Separately, from April 1, 2022, all Russian and Belarusian quota
measures on U.S. steel imports from the EU, which was further volumes were redistributed across other country-specific quotas
extended for another two years in December 2023. Effective and the residual quota based on 2021 imports.
January 1, 2022, the U.S. replaced the existing Section 232
tariffs on EU steel with a Tariff-rate Quota ("TRQ") consistent Anti-dumping duties on Hot-Rolled Coil entering the EU from
with pre-Section 232 trade volumes in return for the EU China, Brazil, Russia and Iran have been in place since 2017
dropping the threat of retaliatory tariffs. The total annual import and were renewed in 2023 for an additional 5 years. In addition,
volume under the TRQ is set at 3.3 million tonnes allocated by China is subject to anti-subsidy measures.
product category and on an EU member state basis. Only steel
During 2023, the Commission concluded expiry reviews into
“melted and poured” in the EU is eligible for duty-free treatment.
anti-dumping measures on imports of Chinese Heavy Plate and
Imports above the TRQ volumes will continue to be subject to
Belarusian Rebar, reconfirming the measures for a further 5
the 25% tariff. An additional 1.1 million tonnes of products
years.
previously excluded from Section 232 tariffs will also be allowed
to continue duty-free. Subsequently, the U.S. reached similar An expiry review is currently ongoing into anti-dumping
agreements with Japan and the UK, also replacing the 25% measures on corrosion-resistant steel from China.
section 232 tariffs with tariff-rate quotas. Those agreements took
effect on April 1, 2022 (Japan) and June 1, 2022 (UK). In response to the measures adopted by the United States and
the EU, Turkey opened a safeguard investigation on May 2,
The USA Section 232 tariffs triggered concerns of trade 2018 with provisional measures effective as of October 17,
deflection worldwide and several countries initiated domestic 2018. Turkey’s safeguard investigation on iron and steel
remediation measures. On July 19, 2018, the EU Commission products, which was supposed to be concluded by January 26,
imposed provisional measures based on global tariff quotas with 2019, was extended for six months, i.e., until July 26, 2019, with
a 100% quota based on average imports over the past three provisional safeguard measures that remained in effect until
years on 23 product categories. Imports that exceeded the May 5, 2019. The investigation covered hot-rolled, cold-rolled,
above quotas would face a 25% tariff but certain 'developing' coated, hot-dipped galvanized, bars and rods, angles, shapes
countries were exempt when their respective import shares and sections, wire rod, rails, tubes and hollow profiles and
were below 3%. The EU’s provisional safeguard measures were stainless steel and the provisional measures were in the form of
replaced by definitive safeguard measures on February 2, 2019, a free tariff quota with 25% duties. The investigation was
which cover the full steel product scope, setting country-based terminated on May 7, 2019 without permanent safeguard
quotas for larger importers on all product categories, except for measures being imposed. In January 2021, Turkey opened an
hot rolled (global), and quarterly quota calculations for residual investigation into HRC coming from the EU and South Korea.
volumes of all products. The measures also included annual The investigation led to a 10.9% duty being applied to imports
quota relaxations, adaptable to market conditions. Countries from ArcelorMittal as from July 7, 2022. In 2023, Turkey opened
subject to quotas have an incentive to front-load the a safeguard investigation into Wire Rod imports, imposing
consumption of their national quota in order to benefit from the provisional measures while the investigation is ongoing.
residual quotas in the final quarter of the period, thus ensuring
full quota consumption. In 2019 and 2020, the EU commission In 2022, the U.S. completed reviews of anti-dumping and
completed review investigations of these safeguard measures countervailing duty measures in place on corrosion-resistant,
and implemented various technical modifications, such as cold-rolled, and hot-rolled steel, and cut-to-length steel plate,
capping the HRC quota to 30% per exporting country. continuing most duties for another 5 years.

In 2021, the EU Commission carried out a review into extending In January 2023, the U.S. initiated an anti-dumping investigation
the safeguard measures to consider whether the situation regarding tin mill products from 8 countries, including Canada.
justified prolonging the tariff-rate quota. On June 18, 2021, EU ArcelorMittal Dofasco was named as a respondent in the case.
member states voted in favor of a three-year extension In February 2024, a final decision confirmed that no measures
prolonging the measures until June 30, 2024. There were no will be imposed on any of the 8 countries targeted.
changes to the quota modalities, however it was agreed to carry
In Canada, as a result of the opening of a safeguard
out a review of the quota levels after one year and a review of
investigation on certain flat and long products, provisional
the measures in general after two years. The first of these
measures were put in place on October 25, 2018 in the form of
reviews took place in 2022 and a further review in 2023
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quotas and a 25% tariff on steel imports. Final safeguard requiring the BCRA's approval for all foreign currency
measures were subsequently implemented in relation to plate transactions and all transfers to and from the local market for
and stainless wire, but not rebar, hot rolled, prepaint, wire rod companies and for financial outflows, such as dividend
and energy tubulars. In addition, thirteen cold-rolled and payments. These restrictive measures to access the foreign
corrosion-resistant anti-dumping and countervailing duty exchange market are, according to the BCRA, essential to
measures were implemented between 2018-2020. In 2021, anti- mitigating the inflationary crisis and the worsening of the
dumping and countervailing duty measures were initiated for balance of payments. The BCRA has set a limit of 5 days for
hot-rolled from China, Brazil, Ukraine and India under a five- exporters to convert foreign currency, while institutions will need
year review. As of 2022, the measures remained in place for all authorization of the bank to buy USD in the foreign exchange
countries except Ukraine. For rebar, nineteen anti-dumping and market, except in the case of foreign trade, according to a
countervailing duty measures were implemented between 2015 statement from the BCRA. In September 2020, the BCRA
to 2021, with 10 measures continued in two separate 5-year intensified foreign currency exchange regulation once again,
reviews in 2020 and 2022. instituting a 30% tax on purchases made abroad and restricting
withdrawals to $200 per month. In addition, a 0.06% fixed
In February 2024, the Canadian government announced charge has been imposed on all current bank accounts (debit
implementation of a “Country of Melted and Poured” steel import and credit). As from October 2020, non-residents’ investment
monitoring system, with mandatory reporting effective repatriation is allowed so long as the repatriation takes place at
November 2024. least two years following the initial capital contribution and
settlement in the foreign currency exchange market. See also
The Eurasian economic union led by Russia also opened a
note 2.2.2 to the consolidated financial statements. Some non-
safeguard investigation on August 7, 2018 covering some flat
official change rates exist in Argentina, the “dollar blue” which is
steel products only and on August 8, 2019, safeguard measures
exchanged on the street and the “blue chip swaps” rate. In late
covering hot-rolled steel were put in place, imposing 20% tariffs
2023, the government of Argentina issued a resolution based on
above relevant quotas.
which exporters would be able to convert 50% of their revenues
Key currency regulations and exchange controls in U.S. dollars using official foreign currency rates and 50% at
As a holding company, ArcelorMittal is dependent on the Blue Chip Swap rates, which improves the final net rate
industrial franchise fees from, earnings and cash flows of, and exporters can access in the foreign exchange market.
dividends and distributions from, its operating subsidiaries to
In December 2023 the government devalued the ARS against
pay expenses, meet its debt service obligations, pay any cash
the U.S. dollar to establish an official exchange rate of around
dividends or distributions on its ordinary shares or conduct
800 pesos per U.S. dollar. The adjustment of the exchange rate
share buy-backs. Significant cash or cash equivalent balances
will serve as a supplementary anchor for inflation expectations.
may be held from time to time at subsidiaries where repatriation
Based on the current situation the exchange rate devaluation
of funds may be affected by tax and foreign exchange policies,
path is currently set at 2% per month by the government.
including in Argentina, Brazil, China, Kazakhstan, South Africa,
Ukraine and Venezuela. Such policies are briefly summarized Brazil
below; however, none of these are currently significant in the The Central Bank of Brazil ("BCB") operates, consistent with the
context of ArcelorMittal’s overall liquidity. inflation targeting rate, a free floating foreign exchange regime
that aims to reduce excessive volatility, although intervention
Argentina
has become more regular in recent years. The BCB regulates all
The Argentinian foreign exchange market is regulated by the
currency inflows and outflows in Brazil, and the country's foreign
Argentine Central Bank ("BCRA"). The BCRA implemented a
exchange regime does not permit free convertibility of the
crawling foreign exchange regime in 2021, resulting in the
currency. Nevertheless, the BCB does not intervene in the
steady appreciation of the Real Effective Exchange Rate
foreign exchange market to determine the exchange rate. The
("REER"). The BCRA allows the local currency to free-float
Brazilian Real is fully deliverable onshore (i.e., physical
against the USD, however, capital controls have reduced
settlement of the designated currency at maturity), but is non-
volatility in an effort to provide stability to the currency and fight
deliverable offshore. As a result, foreign currency transactions
inflation. The Argentinian peso (“ARS”) is not fully convertible
must be executed with an institution authorized by the BCB to
and is most commonly traded as a non-deliverable forward
carry out such transactions, which is responsible for ensuring
("NDF"), both onshore and offshore. An account in local
compliance with the local foreign exchange regulation. With
currency cannot be held offshore. As of July 1, 2018, Argentina
proper documentation, the repatriation of registered invested
has been considered as a hyperinflationary economy. Since the
capital and remittance of profits do not require prior approval
re-imposition of capital controls in September 2019, local
restrictions on obtaining foreign currencies have tightened,
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from the BCB. Profits can be freely remitted as dividends or as investments that are not permitted under the automatic route. A
interest on capital to foreign shareholders or portfolio investors. daily benchmark fixing is published by the Financial Benchmark
of India Limited for INR against U.S. dollar, €, JPY and GBP.
China Other permitted capital account transactions that are allowed,
China’s foreign exchange regime has undergone significant subject to compliance with local applicable regulations, include
liberalization in recent years. The People’s Bank of China foreign direct investment, foreign currency loans and bonds,
("PBOC") maintains the Chinese renminbi in a managed float securities and equity investments overseas. In April 2020, the
with reference to a basket of currencies. The CNY, which refers RBI issued final guidelines on “Hedging of foreign exchange risk
to the Chinese renminbi on the onshore market, is partially by Residents and Non-Residents”. The simplified guidelines are
convertible and has a non-deliverable offshore market. CNY expected to have a positive material impact on product suite,
foreign currency spot transactions under $50,000 per year do procedures and requirements for hedging requests which will
not require supporting documents. All onshore transactions impact both local and global franchises.
involving foreign exchange are strictly controlled by the State
Administration of Foreign Exchange. The foreign currency South Africa
exchange fixing rate is announced every morning at 9:15 Beijing The South African Reserve Bank ("SARB") operates a managed
time, and the interbank market is only allowed to trade within 2% floating exchange rate system. The South African rand (“ZAR”)
of the fixing rate for onshore CNY versus U.S. dollar. Since is deliverable and largely convertible, and the SARB is gradually
2021, repatriating capital or profits out of China includes relaxing exchange rate controls. The currency is deliverable and
increased layers of inspection and security from the traded out to 10 years, although liquidity is highest in tenors of
government. The PBOC has decided to increase the amount of two years or less. Since January 1, 2014, companies may apply
foreign-currency deposits that financial institutions need to hold for approval to establish a holding company to hold their
as reserves, as from June 2021, in order to curb sell-offs of offshore investments. Subject to certain conditions, listed
foreign currencies after the renminbi's value climbed to a record companies may place ZAR 3 billion per year with such holding
high. The CNH, which is the Chinese renminbi traded offshore, companies, which can be transferred offshore without exchange
became deliverable in Hong Kong in July 2010. The CNH can control approval, and unlisted companies may transfer ZAR 2
generally be transferred freely between offshore accounts and billion per year. All funds transferred into or out of South Africa
interaction with the onshore market is growing, although must be declared to the SARB. Active currency hedging with
transfers of CNH from Hong Kong to onshore China are subject maturity of more than 12 months requires documentary
to regulations and approval by the PBOC. Moreover, in July evidence of firm and ascertainable commitment. In most cases,
2020, integration of the interbank and exchange bond markets, there are no restrictions on capital inflows. However, all
as well as wider participation in the treasury bond futures incoming loans are subject to the SARB’s approval and
market, suggest that more progress is likely to be made by the institutions’ overseas investments are restricted to 25% of retail
PBOC to move toward increased internalization of the Chinese assets for retirement funds and long-term insurers.
market.
Ukraine
India The National Bank of Ukraine ("NBU") is responsible for the
The Reserve Bank of India ("RBI") maintains the Indian rupee country’s monetary policy. Due to the ongoing geopolitical
(“INR”) in a managed floating regime. The INR is partially conflict with Russia since the end of February 2022, on shore
convertible and has a non-deliverable offshore market. Onshore liquidity on Ukrainian Hryvnya ("UAH") has been significantly
deliverable forwards are also available out to 10 years. The reduced, leading to the NBU implementing strong regulation to
most common tenor with the best liquidity in the forwards market control foreign exchange transactions. Thus, legal entities must
is one year or less. The RBI monitors the value of the INR first use foreign currencies they have at their disposal and then
against the REER. The INR exchange rate is determined in the access the foreign exchange market of Ukraine. The NBU has
interbank foreign exchange market. The INR is convertible for fixed the official UAH rate against the U.S. dollar at 36.57 since
exports and imports of goods and services as well as unilateral July 2022, and switched to a managed floating exchange rate in
transfers, including repatriating profits from foreign-funded early October 2023. Transacting in offshore non-deliverable
companies, as well as for daily recurring transactions in the forwards is not possible, except in extremely limited
ordinary course of business. However, the INR is restricted on circumstances.
capital accounts (purchase and sale transactions of foreign
assets and liabilities) and there are specific transactions that Venezuela
have to be authorized by the RBI or other relevant government Venezuela’s foreign exchange regime has been characterized
departments for routine capital account transactions, e.g. foreign by governmental devaluation and legislative changes. DICOM is
currency borrowings under the approval route or foreign direct the country’s official exchange rate. On August 20, 2018, the
bolivar soberano ("VES") replaced the bolivar fuerte ("VEF") at a
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rate of 1 VES to 100,000 VEF. The only way to convert the VES procedures may not always prevent the occurrence of violations
is through the DICOM rate, which sets an exchange limit of which may lead to regulatory penalties or cause reputational
€340,000 per month for domestic legal entities. Since harm to operating subsidiaries, joint ventures or associates. See
September 7, 2018, currency purchase and sale transactions “Introduction—Risk Factors and Control.”
can be freely converted by direct agreement between the
parties, provided they do so through the exchange operators of
the Central Bank, however, the Central Bank of Venezuela can
intervene in these operations whenever it deems necessary to
avoid distortions of the exchange value of the national currency.
Local banks are allowed to provide accounts in U.S. dollars and
other convertible currencies as well as the transfer of funds
between banks. Since this regime's effective date, the foreign
exchange market has been characterized by limited existence of
customers and transactions for insignificant amounts.
Transactions are allowed on a non-deliverable offshore market,
but liquidity is very limited. On October 1, 2021, Venezuela's
Government launched its second monetary overhaul in three
years by cutting six zeros from the bolivar currency in response
to hyperinflation. Consequently, the currency has been renamed
from VES to VED.

Disclosure pursuant to Section 219 of the Iran Threat Reduction

& Syria Human Rights Act (ITRA) ArcelorMittal’s business with
customers in Iran
Section 219 of the Iran Threat Reduction and Syria Human
Rights Act of 2012 added Section 13(r) to the U.S. Securities
Exchange Act of 1934, as amended (the Exchange Act).
Section 13(r) requires an issuer to disclose in its annual reports
whether it or any of its affiliates knowingly engaged in certain
activities, transactions or dealings relating to Iran. Disclosure is
required even where the activities, transactions or dealings are
conducted outside the United States by non-US persons in
compliance with applicable law, and whether or not the activities
are sanctionable under US law.

In 2023, neither ArcelorMittal nor any of its affiliates engaged in

activities, transactions or dealings relating to Iran triggering
disclosure under Section 13(r).

ArcelorMittal continues to monitor developments in this area, in

particular the status of U.S. Sanctions, the Joint Comprehensive
Plan of Action ("JCPOA") and EU Sanctions, and the expansion
of the EU Blocking Regulation (Council Regulation (EC)
2271/96). ArcelorMittal carefully monitors political risk and
sanctions exposure and has procedures and systems in place
intended to manage those risks.

However, ArcelorMittal’s business is subject to an extensive,

complex and evolving regulatory framework. It is possible that
ArcelorMittal may face conflicting obligations or risks under U.S.
direct and secondary sanctions and the EU Blocking Regulation,
or other conflicting instruments. Despite its governance,
compliance policies and procedures and continuous efforts to
comply with all applicable sanctions regimes, its systems and
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Organizational structure
ArcelorMittal is a holding company with no business operations of its own. All of ArcelorMittal’s significant operating subsidiaries are indirectly owned by ArcelorMittal through
intermediate holding companies. The following chart represents the operational structure of the Company, including ArcelorMittal’s significant operating subsidiaries and not its legal
or ownership structure.

• On March 9, 2023, ArcelorMittal completed the acquisition of ArcelorMittal Pecém. See "Introduction—Key transactions and events in 2023" and note 2.2.4 to the consolidated financial statements.
** On December 7, 2023, the Company completed the sale of ArcelorMittal Temirtau, its Kazakh steel and mining operation. See "Introduction—Key transactions and events in 2023" and note 2.3 to the consolidated financial
statements.

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Please refer to the "Glossary—definitions, terminology and billets and wire drawing. In 2023, shipments from Brazil totaled
principal subsidiaries" for a listing of the Company’s principal 13.7 million tonnes. The raw material supply of the Brazil
subsidiaries, including country of incorporation. Please refer to operations includes sourcing from iron ore captive mines in
note 2.2.1 of the consolidated financial statements for the Brazil.
ownership percentages of these subsidiaries. Unless otherwise
stated, the subsidiaries as listed have share capital consisting Europe produces flat, long and tubular products. Flat products
solely of ordinary shares, which are held directly or indirectly by include hot rolled coil, cold rolled coil, coated products, tinplate,
the Company and the proportion of ownership interests held plate and slab. These products are sold primarily to customers
equals to the voting rights held by the Company. in the automotive, general industry and packaging sectors. Flat
product facilities are located at 11 integrated and mini-mill sites
Investments accounted for under the equity method located in five countries. Long products include sections, wire
ArcelorMittal has investments in entities accounted for under the rod, rebar, billets, blooms and wire drawing. Long product
equity method as detailed in note 2.4 to ArcelorMittal’s facilities are located at 10 integrated and mini-mill sites in seven
consolidated financial statements. The Company's key countries. In addition, Europe includes downstream solutions,
investments in joint ventures are AMNS India, Acciaierie d'Italia, which provides primarily distribution of long and flat products as
Calvert and VAMA for which the Company holds 60%, 62%, well as value-added and customized steel solutions through
50% and 50%, respectively. See section “Property, plant and further processing to meet specific customer requirements. In
equipment—Investments in joint ventures” for further details. 2023, shipments from Europe totaled 28.1 million tonnes. The
raw material supply of Europe operations includes sourcing from
Reportable segments iron ore captive mines in Bosnia & Herzegovina.
ArcelorMittal reports its business in the following five reportable
segments corresponding to continuing activities: NAFTA, Brazil, ACIS produces a combination of flat, long and tubular products.
Europe, ACIS and Mining. It has five flat and long production facilities in three countries. In
2023, shipments from ACIS totaled 6.0 million tonnes, with
As from April 1, 2021, ArcelorMittal implemented changes to its shipments made on a worldwide basis. The raw material supply
organizational structure whereby primary responsibility for of the ACIS operations includes sourcing from iron ore captive
captive mining operations whose output is mainly consumed by mines in Kazakhstan (before the Company's disposal of mining
their respective steel segments was transferred to such operations there, as discussed below) and Ukraine, and coal
segments. The Mining segment retains primary responsibility for captive mines in Kazakhstan (before the Company's disposal of
the operation of the seaborne oriented operations at AMMC and mining operations there, as discussed below). On December 7,
ArcelorMittal Liberia Ltd, and will continue to provide technical 2023, ArcelorMittal completed the sale of its steel and mining
support to all mining operations within the Company. Only the operations in Kazakhstan. See "Introduction—Key transactions
seaborne-oriented operations of AMMC and ArcelorMittal Liberia and events in 2023". As a result of this transaction, as of
Ltd are reported within the Mining segment. The results of all December 31, 2023, the ACIS segment had four flat and long
other mines are accounted for within the steel segment that they production facilities in two countries, South Africa and Ukraine.
primarily supply.
Mining provides the Company's steel operations with high
NAFTA produces flat, long and tubular products. Flat products quality and low-cost iron ore reserves and also sells mineral
include slabs, hot rolled coil, cold rolled coil, coated steel products to third parties. Mining segment iron ore mines are
products and plate and are sold primarily to customers in the located in North America and Africa. In 2023, iron ore production
following sectors: automotive, energy, construction packaging in the mining segment totaled approximately 26.0 million tonnes.
and appliances and via distributors and processors. Flat product
facilities are located at two integrated and mini-mill sites located As from January 1, 2024, ArcelorMittal implemented changes to
in two countries. Long products include wire rod, sections, rebar, its organizational structure. India and joint ventures will be
billets, blooms and wire drawing. Long production facilities are reported as a new operating segment including the joint
located at two integrated and mini-mill sites located in two ventures AMNS India, VAMA and Calvert as well as other
countries. In 2023, shipments from NAFTA totaled 10.6 million associates, joint ventures and other investments. The segment
tonnes. The raw material supply of the NAFTA operations Sustainable Solutions will be composed of a number of high-
includes sourcing from iron ore captive mines in Mexico to growth, niche, capital light businesses playing an important role
supply the steel facilities. in supporting climate action (including renewables, special
projects and construction business). They are currently reported
Brazil produces flat, long and tubular products. Flat products within the Europe segment and will be reported as a separate
include slabs, hot rolled coil, cold rolled coil and coated steel. operating segment. The NAFTA segment will be renamed North
Long products comprise sections, wire rod, bar and rebars, America. Finally, following the sale of the Company’s operations
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in Kazakhstan, the remaining parts of the former ACIS segment where information is provided in accordance with SEC
will be assigned to Others. These changes will be presented Regulation S-K, Subpart 1300 (“S-K 1300”).
with the earnings release for the first quarter of 2024.
For further information on environmental issues that may affect
PROPERTIES AND CAPITAL EXPENDITURES ArcelorMittal’s utilization of its assets, see “Business overview—
Government regulations”, "Business overview—Sustainable
Property, plant and equipment development" and notes 1.2 and 9.1 to ArcelorMittal’s
ArcelorMittal has steel production facilities, as well as iron ore consolidated financial statements.
mining operations, in North and South America, Europe, Asia
(on December 7, 2023, ArcelorMittal completed the sale of its Steel production facilities of ArcelorMittal
steel and mining operations in Kazakhstan) and Africa. The following table provides an overview by type of steel facility
of the principal production units of ArcelorMittal’s operations.
All of ArcelorMittal's operating subsidiaries are substantially While all of the Group’s facilities are shown in the tables, only
owned by ArcelorMittal through intermediate holding companies, the facilities of significant subsidiaries are described textually for
and are grouped into the five reportable segments as described each segment. The facilities included in the tables are listed
above. Unless otherwise stated, ArcelorMittal owns all of the from upstream to downstream in the steel-making process.
assets described in this section. Regarding ArcelorMittal's iron
ore mines, see also "—Mineral reserves and resources" below,

Number of Capacity (in million tonnes Production in 2023

Facility Facilities 3 4 per year)1,3,4 (in million tonnes)2,3,4
Coke Oven Battery 50 26.5 17.0
Sinter Plant 22 79.6 42.4
Blast Furnace 35 66.1 41.3
Basic Oxygen Furnace (including Tandem Furnace) 46 70.0 43.8
DRI/HBI Plant 13 10.6 7.8
Electric Arc Furnace 30 24.9 15.4
Continuous Caster—Slabs 29 62.6 40.4
Hot Rolling Mill 14 53.8 32.8
Pickling Line 21 24.6 10.6
Tandem Mill 25 28.3 16.8
Annealing Line (continuous / batch) 28 12.4 5.3
Skin Pass Mill 18 11.2 4.1
Plate Mill 5 1.7 0.9
Continuous Caster—Bloom / Billet 32 31.5 17.4
Breakdown Mill (Blooming / Slabbing Mill) 1 6.0 0.3
Billet Rolling Mill 3 2.6 1.0
Section Mill 22 12.2 5.1
Bar Mill 18 7.8 5.5
Wire Rod Mill 16 10.5 5.8
Hot Dip Galvanizing Line 39 15.6 12.1
Electro Galvanizing Line 8 1.6 0.8
Tinplate Mill 12 2.4 0.8
Color Coating Line 16 2.6 1.4
Seamless Pipes 3 0.4 0.1
Welded Pipes 98 4.1 1.0

1. Reflects design capacity and does not take into account other constraints in the production process (such as, upstream and downstream bottlenecks and product mix
changes). As a result, in some cases, design capacity may be different from the current achievable capacity.
2. Production facility details include the production numbers for each step in the steel-making process. Output from one step in the process is used as input in the next step
in the process. Therefore, the sum of the production numbers does not equal the quantity of sellable finished steel products.

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3. On December 7, 2023, ArcelorMittal completed the sale of ArcelorMittal Temirtau, its steel and mining operation in Kazakhstan, with the integrated steel plant including six
coke oven batteries, three sinter plants, three blast furnaces, three basic oxygen furnaces, three continuous casters, one hot rolling mill and 21 downstream facilities. See
note 2.3 to the consolidated financial statements and "Introduction—Key transactions and events in 2023". The number of lines and their respective capacities, as well as
their production through the transaction closing date are included in the table above.
4. On March 9, 2023, ArcelorMittal completed the acquisition of Companhia Siderúrgica do Pecém in Brazil subsequently renamed ArcelorMittal Pecém. See note 2.2.4 to
the consolidated financial statements and "Introduction—Key transactions and events in 2023". The above table includes the number of lines and their respective
capacities, as well as their production since the date of acquisition of ArcelorMittal Pecém.

Crude steel production by process and segment in 2023 (in million tonnes)

Segment Basic oxygen furnace Electric arc furnace Total

NAFTA 3.1 5.6 8.7
Brazil 10.3 3.7 14.0
Europe 23.2 5.6 28.8
ACIS 6.5 — 6.5
Total 43.1 14.9 58.1

Blast furnace and electric arc furnace facilities

Segment Blast furnaces Electric arc furnaces
NAFTA 3 8
Brazil 7 8
Europe 15 13
ACIS1 10 1
Total 35 30
1. Including ArcelorMittal Temirtau's assets, in particular three blast furnaces, prior to sale in December 2023.

NAFTA Crude Steel

Production in 2023
Unit Country Locations (in million tonnes per year)1 Type of plant Products

ArcelorMittal Dofasco Canada Hamilton 3.1 Integrated, Mini-mill Flat

ArcelorMittal Texas HBI USA Corpus Christi n/a Iron-Making Hot briquetted iron
Lázaro Cárdenas, Mini-mill, Integrated, Flat, Long/ Bar, Wire
ArcelorMittal Mexico Mexico 3.8
Celaya and Downstream Rod
Contrecoeur East, Long/ Wire Rod,
ArcelorMittal Long Products Canada Canada 1.8 Mini-mill
West Bars, Slabs
ArcelorMittal Tubular Products Canada Brampton n/a Downstream Pipes and Tubes
ArcelorMittal Tubular Products Canada London n/a Downstream Pipes and Tubes
ArcelorMittal Tubular Products Canada Woodstock n/a Downstream Pipes and Tubes
ArcelorMittal Tubular Products Canada Hamilton n/a Downstream Pipes and Tubes
ArcelorMittal Tubular Products USA Shelby n/a Downstream Pipes and Tubes
ArcelorMittal Tubular Products USA Marion n/a Downstream Pipes and Tubes
ArcelorMittal Tubular Products ² Mexico Monterrey n/a Downstream Pipes and Tubes

Captive mining operations

ArcelorMittal
Unit Country Locations Type of Mine
Interest (%) Product
ArcelorMittal Mexico (excluding Sonora, Sinaloa and Concentrate, lump
Mexico 100.0 Iron Ore Mine (open pit)
Peña Colorada) Michoacán and fines
ArcelorMittal Mexico Peña Concentrate and
Mexico Minatitlán 50.0 Iron Ore Mine (open pit)
Colorada pellets

1. n/a = not applicable (no crude steel production)

2. ArcelorMittal Tubular Products launched a new welded pipe mill #5 at its Monterrey plant in the second half of 2023.

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ArcelorMittal Dofasco largest single rebar and wire rod production facilities in Mexico
ArcelorMittal Dofasco (“Dofasco”) is a leading North American and mainly uses the integrated route for steelmaking. The
steel solution provider and Canada’s largest manufacturer of flat facility is located in Lázaro Cárdenas in the Michoacán state by
rolled steels. Dofasco’s steel-making plant in Hamilton, Ontario the Pacific coast and is highly accessible by ocean, rail, and
is adjacent to water, rail and highway transportation. The plant other means. It also operates a rebar mill at Celaya with billets
uses both integrated and EAF-based steelmaking processes. Its sourced from the Lazaro facility.
products include hot rolled coils, cold rolled coils, galvanized
steels and tinplate. Dofasco supplies these products to the The new hot strip mill project which commenced in the fourth
automotive, construction, packaging, manufacturing, pipe and quarter of 2017 produced its first coils in December 2021.
tube and steel distribution markets. Ramp-up is underway and is on track with capacity utilization
having reached approximately 60% as of the end of 2023.
Dofasco has a CAD$1.8 billion investment project in a low-
carbon emissions steelmaking facility at its plant in Hamilton ArcelorMittal Mexico Mining Assets
involving the construction of a 2.4 million tonnes DRI facility and ArcelorMittal Mexico operates three iron ore mines in Mexico,
one EAF. The project is currently progressing through FEED the San José and Las Truchas mines and Consorcio Minero
stage. See “Business overview—Sustainable development— Benito Juarez Peña Colorada, S.A. de C.V. ("Peña Colorada"), a
Climate change and decarbonization". 50/50 joint operation between ArcelorMittal and Ternium S.A
("Ternium"). ArcelorMittal continues to operate certain parts of
Following the completion in 2022 of the hot strip mill the El Volcan facilities with material coming from the San José
modernization project (to install two new state-of-the-art coilers mine (as further described below). For further details on Mexico
and runout tables to replace three end-of-life coilers as well as mines production and other information, see "—Mineral
to upgrade the strip cooling system) and the #5 CGL conversion reserves and resources".
to AluSi® project (addition of up to 160,000 tonnes per year
Aluminum Silicon (AluSi®) coating capability to #5 Hot-Dip Peña Colorada
Galvanizing Line for the production of Usibor® steels), product Peña Colorada operates an open pit mine in the province of
commercialization and ramp-up are in progress as of the end of Minatitlán in the northwestern part of the State of Colima,
2023; the first commercialized coil was delivered in the second Mexico. It also operates a concentrating facility and a two-line
half of 2023. pelletizing facility. The beneficiation plant is located at the mine,
whereas the pelletizing plant is located in Manzanillo. The
ArcelorMittal Texas HBI magnetite concentrate produced at the mine is shipped from
On June 30, 2022, ArcelorMittal completed the acquisition of an Manzanillo to ArcelorMittal Mexico, as well as to Ternium’s steel
80% shareholding in voestalpine’s HBI plant located near plants by ship and by rail.
Corpus Christi, Texas. The state-of-the-art plant, which was
opened in October 2016, is one of the largest of its kind in the El Volcan & San José
world and produces Hot Briquetted Iron ("HBI"), a high quality ArcelorMittal operates the San José and El Volcan mines in the
feedstock made through the direct reduction of iron ore which is state of Sonora, Mexico. The El Volcan mine stopped production
used to produce high-quality steel grades in an EAF, but it can in 2019 due to depletion of reserves, but mining has continued
also be used in blast furnaces, resulting in lower coke at the San José mine located approximately 40 kilometers from
consumption. The plant has an annual capacity of two million Culiacán City, in the south of the Sinaloa State.
tonnes of HBI, which is a premium, compacted form of DRI
The El Volcan facilities which continue to be used with materials
developed to overcome issues associated with shipping and
from the San José mine include the concentration plant and port
handling DRI. The transaction enhances ArcelorMittal’s ability to
installations. Concentrate produced is transported by rail to the
produce the high-quality input materials required for low carbon
Pacific port of Guaymas and then shipped to the steel plant in
emissions steelmaking, and reinforces the Company’s position
Lázaro Cárdenas.
as a world leader in DRI production. The facility includes its own
deep-water port and unused land on the site which provides Las Truchas
options for further development. ArcelorMittal operates the Las Truchas mine located
approximately 27 kilometers southeast of the town of Lázaro
ArcelorMittal Mexico
Cárdenas in the State of Michoacán, Mexico. The concentrated
ArcelorMittal Mexico produces both flat and long steel products
ore is pumped from the mine site through a slurry pipeline to the
and operates an integrated route and EAF route using DRI. It
steel plant facility in Lázaro Cárdenas.
produces higher quality slabs for use in specialized steel
applications in the automotive, line pipe manufacturing, ArcelorMittal has progressed on its project to increase pellet
shipbuilding and appliance industries. It is also one of the feed production at Las Truchas mine to 2.3 million tonnes per
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annum with DRI concentrate grade capability. This project will economics. It produces wire rods, wire products and bars,
enable concentrate production for the BF route and DRI route, primarily sold in Canada and the United States and principally
with the goal of supplying ArcelorMittal Mexico's steel operations serves the automotive, appliance, transportation, machinery and
with high quality feed. Production is expected to start in the construction industries. It also produces slabs that are used
second half of 2025. See "—Capital expenditures". within ArcelorMittal.

For further details on ArcelorMittal Mexico mining assets In 2022, AMLPC successfully tested the use of green hydrogen
production and other information, see "—Mineral reserves and in the production of DRI at its steel plant in Contrecoeur,
resources". Quebec. See “Business overview—Sustainable development—
Climate change and decarbonization".
AMLPC
AMLPC is the largest mini-mill in Canada and has the flexibility
to use either DRI or scrap, depending on their respective
BRAZIL Crude Steel

Production in 2023
Unit Country Locations (in million tonnes per Type of plant Products
year) 1
Sol Brazil Vitoria n/a Coke-Making Coke
ArcelorMittal Tubarão Brazil Vitoria 6.6 Integrated Flat
ArcelorMittal Vega Brazil São Francisco do Sul n/a Downstream Flat
ArcelorMittal Brasil Brazil João Monlevade 1.1 Integrated Long/ Wire Rod
Juiz de Fora,
ArcelorMittal Brasil Brazil 1.9 Mini-mill Long/ Bar, Wire Rod
Piracicaba
Barra Mansa, Long/Rebar, Wire rod,
ArcelorMittal Brasil Brazil 0.7 Mini-mill
Resende Bars, Sections, Wires
ArcelorMittal Pecém 2 Brazil Pecém 2.5 Integrated Flat
Acindar Argentina Villa Constitucion 1.1 Mini-mill Long/ Wire Rod, Bar
ArcelorMittal Costa Rica Costa Rica Costa Rica n/a Downstream Long/ Wire Rod
Barquisimeto,
Industrias Unicon Venezuela n/a Downstream Pipes and Tubes
Matanzas, La Victoria

Captive mining operations

ArcelorMittal
Unit Country Locations Interest (%) Type of Mine Product
ArcelorMittal Brasil Andrade Mine Brazil State of Minas Gerais 100.0 Iron Ore Mine (open pit) Fines
ArcelorMittal Mineração Serra Azul Brazil State of Minas Gerais 100.0 Iron Ore Mine (open pit) Lump and fines

1. n/a = not applicable (no crude steel production).

2. In March 2023, ArcelorMittal concluded the acquisition of CSP’, subsequently renamed ArcelorMittal Pecém. The table above includes the production from ArcelorMittal
Pecém since acquisition. See note 2.2.4 to the consolidated financial statements and "Introduction—Key transactions and events in 2023".

ArcelorMittal Brasil Francisco do Sul. The expansion project is under execution; see
ArcelorMittal Brasil produces both flat and long steel products. "—Capital expenditures".
Flat products are manufactured at ArcelorMittal Tubarão and
ArcelorMittal Vega. Its products include slabs, hot rolled coil, ArcelorMittal Brasil’s long products include wire rod and wire,
cold rolled coil and galvanized steel, and serve customers in sections, merchant bars, special bars and rebars, for use in civil
automotive, appliances, construction and distribution segments. construction, industrial manufacturing, agricultural and
The Tubarão complex uses the integrated steelmaking route to distribution sectors. It produces transformed products including,
produce slabs and rolling hot rolled coils and is strategically among others, welded mesh, trusses, annealed wire and nails. It
located with access to the Praia Mole Marine Terminal as well owns upstream and downstream steel facilities in Monlevade,
as road and railway systems. The Vega facility has cold rolling Juiz de Fora, Piracicaba, Barra Mansa and Resende and
and coating facilities and easy access to the port of São operates an extensive distribution network across the country
selling to retail customers. It owns interests in two subsidiaries,
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Belgo Bekaert Arames Ltda. ("BBA"), which manufactures wire ArcelorMittal Brasil - Andrade Mine
products for agricultural and industrial end-users, and Belgo- ArcelorMittal Brasil operates the Andrade mine located
Mineira Bekaert Artefatos de Arame Ltda., which produces steel approximately 80 kilometers east of Belo Horizonte in the Minas
cords used in the tire industry. ArcelorMittal Brasil also owns Gerais State of Brazil. In addition to the open pit mine,
forests, and its subsidiary ArcelorMittal Bioflorestas produces ArcelorMittal operates a crushing and screening facility. Fine
charcoal from eucalyptus forestry operations that is used to fuel material produced at the mine is transported to the Monlevade
its furnaces in Juiz de Fora and to exchange for pig iron with plant through a private railway line.
local producers.
ArcelorMittal Brasil - Serra Azul Mine
The Monlevade upstream expansion project recommenced in ArcelorMittal Brasil operates the Serra Azul mine located
late 2021; see "—Capital expenditures". approximately 50 kilometers southwest of the town of Belo
Horizonte in the Minas Gerais State of Brazil. ArcelorMittal
On March 9, 2023, ArcelorMittal completed the acquisition of operates an open pit mine and a concentrating facility at the
CSP subsequently renamed ArcelorMittal Pecém; see note 2.2.4 site. Iron ore product is shipped mainly to the ArcelorMittal Brasil
to the consolidated financial statements and "Introduction—Key integrated plants and to the local Brazilian market.
transactions and events in 2023".
In 2021, ArcelorMittal launched an investment at Serra Azul
A new investment in a sections mill at Barra Mansa commenced mine to construct new facilities to produce 4.5 million tonnes per
in the first quarter of 2022; see "—Capital expenditures". annum of DRI quality pellet feed; see "—Capital expenditures".

Acindar For further details on Brazil mines production and other related
Acindar is the largest long steel producer in Argentina. It information, see "—Mineral reserves and resources".
manufactures and distributes products to meet the needs of the
construction, industrial, and agricultural sectors. It produces
rebars, square, round, drawn and flat bars, meshes, nails,
preassembled and welded cages, structural sections, piles, wire
rod and barbed wire. It has an in-house distribution network that
serves end-users across Argentina.

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EUROPE Crude Steel

Production in 2023
Unit Country Locations (in million tonnes per Type of plant Products
year) 1

ArcelorMittal Bremen2 Germany Bremen, Bottrop 2.9 Integrated Flat, Coke

ArcelorMittal Eisenhüttenstadt Germany Eisenhüttenstadt 1.9 Integrated Flat

Ghent, Geel, Genk, Integrated and

ArcelorMittal Belgium3 Belgium 4.3 Flat
Liège Downstream
Dunkirk,
Mardyck,
Montataire, Integrated and
ArcelorMittal France 4 France 3.9 Flat
Desvres, Downstream
Florange, Mouzon,
Basse-Indre
Fos-sur-Mer, Integrated and
ArcelorMittal Méditerranée 5 France 2.4 Flat
Saint-Chély Downstream
Avilés, Gijón, Etxebarri, Integrated and Flat, Long/ Rails, Wire
ArcelorMittal España 6 Spain 3.2
Lesaka, Sagunto Downstream Rod, Plates
ArcelorMittal Avellino & Italy Avellino n/a Downstream Flat
Canossa
Kraków,
Swietochlowice, Flat, Coke, Long/ Sections,
Dabrowa Gornicza, Integrated and
ArcelorMittal Poland Poland 3.1 Wire Rod, Sheet Piles,
Chorzow, Downstream Rails
Sosnowiec,
Zdzieszowice
ArcelorMittal Sestao Spain Bilbao 0.3 Mini-mill Flat
Charleroi, Le Creusot,
France, Chateauneuf, Mini-mill and
Industeel 0.4 Flat
Belgium Saint-Chamond, Downstream
Dunkirk
Long/ Sheet Piles, Rails,
ArcelorMittal Belval & Esch-Belval,
Luxembourg 1.9 Mini-mill Sections & Special
Differdange Differdange, Rodange Sections
ArcelorMittal Olaberria- Spain Olaberría, Bergara 1.0 Mini-mill Long/ Sections
Bergara
ArcelorMittal Gandrange France Gandrange n/a Downstream Long/ Wire Rod, Bars
ArcelorMittal Warszawa Poland Warsaw 0.5 Mini-mill Long/ Bars
ArcelorMittal Hamburg Germany Hamburg 0.7 Mini-mill Long/ Wire Rods
ArcelorMittal Duisburg Germany Ruhrort, Hochfeld 1.0 Integrated Long/ Billets, Wire Rod
ArcelorMittal Hunedoara Romania Hunedoara 0.2 Mini-mill Long/ Sections
Long/ Wire Rod, Bars,
Sonasid Morocco Nador, Jorf Lasfar 0.6 Mini-mill Rebars in Coil
Bosnia and Mini-mill /
ArcelorMittal Zenica Zenica 0.6 Long/ Wire Rod, Bars
Herzegovina Integrated
ArcelorMittal Tubular Products Romania Roman n/a Downstream Pipes and Tubes
Roman SA
ArcelorMittal Tubular Products Romania Iasi n/a Downstream Pipes and Tubes
Iasi SA
ArcelorMittal Tubular Products Czech Karvina n/a Downstream Pipes and Tubes
Karvina a.s. 7 Republic

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EUROPE (continued) Crude Steel

Production in 2023
Unit Country Locations (in million tonnes per Type of plant Products
year) 1

ArcelorMittal Tubular Products Poland Kraków n/a Downstream Pipes and Tubes
Kraków 8
ArcelorMittal Tubular Products France Hautmont n/a Downstream Pipes and Tubes
Hautmont
ArcelorMittal Tubular Products France Vitry n/a Downstream Pipes and Tubes
Vitry
ArcelorMittal Tubular Products France Chevillon n/a Downstream Pipes and Tubes
Chevillon
ArcelorMittal Tubular Products Lexy, Rettel, Vincey,
France n/a Downstream Pipes and Tubes
Lexy Fresnoy-le-Grand
ArcelorMittal Tubular Products Spain Legutiano n/a Downstream Pipes and Tubes
Legutio
ArcelorMittal Tubular Products Spain Zalain-Lesaka n/a Downstream Pipes and Tubes
Zalain

ArcelorMittal Berrioplano 9 Spain Berrioplano n/a Downstream Pipes and Tubes

ArcelorMittal Tubular Products Germany Altensteig-Walddorf n/a Downstream Pipes and Tubes
Altensteig

Captive mining operations

ArcelorMittal
Unit Country Locations Interest (%) Type of Mine Product
Bosnia and Concentrate and
ArcelorMittal Prijedor Prijedor 51.0 Iron Ore Mine (open pit)
Herzegovina lump

1. n/a = Not applicable (no crude steel production).

2. Due to planned maintenance, BF#2 at Bremen (Germany) was stopped in October 2023 and restarted in early December 2023
3. Reline of BF#A at Gent (Belgium) was executed in September 2023 and restarted in early December 2023
4. Blast furnace #4 at Dunkirk site was temporarily stopped at the end of March 2023 due to a fire outbreak; it was restarted in July 2023 following repairs.
5. Blast furnace #1 at Fos-sur-Mer was most recently temporarily idled in September 2023 due to low market demand.
6. Blast furnace A in Gijón was temporarily stopped in September 2022 in response to market conditions and was restarted in February 2023. Blast furnace A was stopped
again at the end of March 2023 due to a fire outbreak, but was restarted in July 2023 following repairs.
7. ArcelorMittal Tubular Products Karvina decommissioned its pipe mill #08 in 2023.
8. In November 2023, ArcelorMittal Tubular Products Kraków announced its plan to stop production at Kraków plant from the first quarter of 2024 due to weaker
macroeconomic conditions and high carbon costs.
9. ArcelorMittal Tubular Products Berrioplano decommissioned and disposed off its mills #02 (M-22 Yoder) and #11 (M-04 Perfrisa) in 2023.

ArcelorMittal France
ArcelorMittal France has locations in Dunkirk, Mardyck, The Dunkirk site has primary facilities and produces slabs as
Montataire, Desvres, Florange, Mouzon and Basse-Indre. The well as hot rolled coils for other ArcelorMittal France sites.
sites of ArcelorMittal France produce and market a wide range
The Mardyck site has finishing facilities and supplies the hot dip
of flat steel products, including slabs, hot rolled and pickled
coating lines of Montataire.
coils, as well as high-value finished products, such as cold
rolled, hot dip galvanized, aluminized and organic coated The Florange site supplies through its hot strip mill and 2 cold
material, tinplate, draw wall ironed tinplate ("DWI") and tin free rolling mills: the 2 hot dip coating lines of Florange (GALSA 1
steel. ArcelorMittal France’s products are sold principally in the and 2), the continuous annealing line of Florange, the hot dip
regional market in France and Western Europe. Certain of its coating lines of Mouzon, as well as the tinplate facilities of
products are designed for the automotive market, such as Florange and Basse-Indre. Mouzon is specialized in finishing
Ultragal®, Extragal®, Galfan, Usibor® (hot dip galvanized), hot dip coating operations. The site of Basse-Indre specializes
while others are designed for the consumer goods and in packaging activities.
appliances market, such as Solfer® (cold rolled) for enameling
applications, as well as packaging market.

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ArcelorMittal intends to build a 2.5 million tonnes per year DRI ArcelorMittal Belgium is planning to reduce carbon emissions by
unit and two EAFs in Dunkirk see “Business overview— 3.0 million tonnes per year by 2030 by building a 2.5 million-
Sustainable development—Climate change and tonnes per year DRI plant and 2 EAF facilities at its Ghent site.
decarbonization". The project is currently progressing through FEED stage; see
“Business overview—Sustainable development—Climate
ArcelorMittal plans to create a new production unit for electrical change and decarbonization".
steels at its Mardyck site in the north of France; see "—Capital
expenditures". ArcelorMittal Liège
The finishing facilities of ArcelorMittal Liège are located west of
Blast furnace #2 at the Dunkirk site was temporarily stopped in Liège. ArcelorMittal Liège produces a wide range of innovative
July 2022, in response to market conditions and was idled products to meet the demanding needs of companies in the
permanently in the fourth quarter of 2022. Blast furnace #4 at automotive industry and industrial domestic appliances. The
Dunkirk site was temporarily stopped at the end of March 2023, operating assets in Liège include the continuous annealing line
due to a fire outbreak at the plant, and was restarted in July 1, hot dip galvanizing line 7 and line 8 (Eurogal), the
2023 after undergoing repairs. electrogalvanizing line 5 and the two organic coating lines, line 2
and line 7 (combiline with hot dip galvanizing line 7). It also
ArcelorMittal Belgium
includes the Jet Vapor Deposition ("JVD") line, a world-class
ArcelorMittal Ghent innovative line coats moving strips of steel in a vacuum chamber
ArcelorMittal Ghent is a fully integrated steel plant which is by vaporizing zinc onto the steel at high speed to produce
located along the Ghent-Terneuzen canal, approximately 17 coated steels for automotive and other industrial applications.
kilometers from the Terneuzen sea lock, which links the works
During 2023, BF#A at Ghent was stopped for a reline from
directly with the North Sea. The canal is of the Panamax type
September 15, 2023 to December 10, 2023.
and can accommodate ships of up to 65,000 tonnes.
ArcelorMittal Ghent produces high added-value flat steel ArcelorMittal Bremen
products. A significant part of the production is coated, either by ArcelorMittal Bremen is situated on the bank of the Weser River
hot dip galvanizing, electro galvanizing or organic coating. north of Bremen, Germany. ArcelorMittal Bremen produces and
ArcelorMittal Ghent also includes one organic coating line sells a wide range of products including slab, hot rolled, pickled,
located in Geel and one electro galvanizing line located in Genk. cold rolled and hot dip galvanized rolls to the automotive and
ArcelorMittal Ghent’s products are mainly used in the primary transformation sectors.
automotive industry and in household appliances, tubes,
containers, radiators and construction. ArcelorMittal is planning to build a large-scale industrial plant for
the DRI based steelmaking at its site in Bremen, as well as
ArcelorMittal has finalized the construction of two industrial EAFs in Bremen and in Eisenhüttenstadt. The projects are
scale plants at its site in Ghent in the framework of the Carbalyst currently progressing through FEED stage; see “Business
and Torero projects which are leveraging breakthrough smart overview—Sustainable development—Climate change and
carbon technologies to enable the use of circular carbon. See decarbonization".
“Business overview—Sustainable development—Climate
change and decarbonization". During 2023, BF#2 at Bremen was stopped for planned
maintenance from beginning October to early December 2023.
Additionally, ArcelorMittal Belgium has commissioned its Torero
plant, which converts waste wood into bio-coal for use in the ArcelorMittal Méditerranée
blast furnace at its Gent steelmaking site; see “Business ArcelorMittal Méditerranée operates a flat carbon steel plant in
overview—Sustainable development—Climate change and Fos-sur-Mer. It also operates a finishing facility for electrical
decarbonization". steel located in Saint-Chély d’Apcher, 300 kilometers northwest
of Fos-sur-Mer. The Fos-sur-Mer plant is located 50 kilometers
west of Marseille on the Mediterranean Sea.

ArcelorMittal Méditerranée’s products include coils to be made

into wheels, pipes for energy transport and coils for finishing
facilities for exposed and non-exposed parts of car bodies, as
well as for the construction, home appliance, packaging, pipe
and tube, engine and office material industries. About 69% of its
products are shipped from a private wharf, in part through a

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shuttle system, and 24% of its products are shipped by rail, with galvanized coils and sheets, wire rods and organic coated
the remaining amount transported by truck. sheets and coils. Products are mainly sold in the domestic
Polish market, while the remainder is exported, primarily to
The Saint-Chély d’Apcher plant produces electrical steel (with customers located in other EU member states. ArcelorMittal
up to 3.2% silicon content), mainly for electrical motors. Poland’s principal customers are in the construction,
engineering, transport, mining and automotive industries.
Blast furnace #2 at the Fos-sur-Mer site was temporarily idled in
Following the permanent closure in November 2020 of its blast
December 2022 in response to market conditions and was
furnace and steel plant in Kraków, the coke plant continued to
subsequently restarted in April 2023. Blast furnace #1 at Fos-
operate, as did its downstream operations (two rolling mills, the
sur-Mer was temporarily idled in September 2023 due to low
hot dip galvanizing line and the new organic coating line). The
market demand.
slabs for the rolling mills in Kraków are supplied mainly from the
ArcelorMittal España steel shop in Dabrowa Górnicza where the Company is
ArcelorMittal España includes the two main facilities of Avilés investing in debottlenecking projects and to produce special
and Gijón, which are connected by ArcelorMittal España’s own grades for further processing into grain-oriented steel.
railway system. These two facilities operate as a single
In November 2023, ArcelorMittal Poland announced its decision
integrated steel plant. The product range of ArcelorMittal
to adjust coke production levels to the difficult economic
España includes rail, wire rod, heavy plates and hot rolled coil,
conditions. The company is going to hot idle the coke oven
as well as more highly processed products such as hot dip and
battery in Kraków due to low demand and coke pricing
electro galvanized sheet, tinplate and organic coated sheet. The
dynamics.
facilities are also connected by rail to the region’s two main
ports, Avilés and Gijón. Raw materials are received at the port of Blast furnace #3 at Dąbrowa Górnicza site was temporarily
Gijón, where they are unloaded at a dedicated dry-bulk terminal, stopped in September 2022 in response to market conditions. It
which is linked to steel-making facilities by conveyor belt. A was subsequently restarted in January 2023 as preparation for
variety of products are shipped through the Avilés port facilities maintenance outage of blast furnace #2, which was completed
to other units of the Group and to ArcelorMittal España’s in the third quarter of 2023.
customers.
ArcelorMittal Eisenhüttenstadt
ArcelorMittal is planning to invest €1 billion in decarbonization ArcelorMittal Eisenhüttenstadt is situated on the Oder river near
technologies at ArcelorMittal Asturias’ plant in Gijón, which the German-Polish border, 110 kilometers southeast of Berlin.
includes the construction of a 2.3 million tonne hydrogen DRI. ArcelorMittal Eisenhüttenstadt is a fully integrated and highly-
The Company is also planning to construct a new EAF for long automated flat steel producing plant. The facility runs with one
products, for which ArcelorMittal España signed a contract with medium-sized blast furnace.
industrial engineering company Sarralle in November 2023. See
“Business overview—Sustainable development—Climate ArcelorMittal Eisenhüttenstadt produces and sells a wide range
change and decarbonization". of flat steel products, including hot rolled, cold rolled, electrical
and hot dip galvanized and organic coated coils to automotive,
Blast furnace A in Gijón was temporarily stopped in September distribution, metal processing, construction and appliances
2022 in response to market conditions and was restarted in industry customers in Germany, Central and Eastern Europe.
February 2023. However, it was stopped again at the end of
March 2023 due to a fire at the Gijón plant, and was restarted in ArcelorMittal has plans for an innovative DRI pilot plant and an
July 2023 after undergoing repairs. EAF in Eisenhüttenstadt; see "ArcelorMittal Bremen" above.

ArcelorMittal Poland ArcelorMittal Belval & Differdange

ArcelorMittal Poland is the largest steel producer in Poland and ArcelorMittal Belval & Differdange produces a wide range of
includes six plants located in Silesia, Malopolska and Opolskie sections and sheets piles which are sold to the local European
province. ArcelorMittal Poland’s Zdzieszowice coke plant construction market as well as for export. With its Rodange
produces and supplies coke to ArcelorMittal subsidiaries and facilities, it also produces a wide range of rails, special sections
third parties. and heavy angles.

ArcelorMittal Poland produces a wide range of steel products, On October 21, 2021, a floating solar farm installed on a former
including both long and flat products such as slabs, billets, cooling pond belonging to ArcelorMittal Differdange was
blooms, sections, sheet piles, rails up to 120 meters long, commissioned. It consists of 25,000 square meters of solar
railway accessories, mining supports sections, hot rolled coils, panels, with a surface area of 5.7 hectares. Since October 2021,
sheets and strips, cold rolled coils, sheets and strips, hot dip the floating solar farm has been producing 3 GWh/year of
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electricity and powers nearly 800 local homes, which represents ArcelorMittal Olaberria-Bergara
the approximate annual electricity usage of 3,200 people. The The Olaberría-Bergara facilities produce billets and sections.
electricity produced on the floating solar farm is fed into the The Olaberría facility's products are sold to the local
Creos’s local grid and contributes to Luxembourg’s energy self- construction market as well as to export markets, while the
sufficiency. Bergara facility’s products are sold primarily to the local
European construction market.
On June 16, 2023, ArcelorMittal confirmed its plan to invest €67
million in a new EAF at its Belval site. This investment is part of ArcelorMittal Duisburg
a series of projects that were the subject to a MoU signed in ArcelorMittal Duisburg produces blooms, billets, bars and high
September 2022 between ArcelorMittal Luxembourg and the quality wire rod and its products are mainly sold in the European
Ministry of the Economy. The MoU confirmed the willingness of market primarily to automotive, railway and engineering
the Luxembourg government to financially support this type of customers.
strategic investment through the various applicable aid
mechanisms. For this project in particular, the subsidies made ArcelorMittal Downstream Solutions ("AMDS")
available by the Luxembourg State amount to approximately The Europe segment also includes AMDS, which primarily
€15 million. The new Belval EAF is one of the flagship projects covers the downstream activities of ArcelorMittal in Europe. It
of this MoU. It will offer improved energy efficiency and an provides distribution of long and flat products as well as value-
increase in steel production capacity in Luxembourg of almost added and customized steel solutions through further
15%, reaching 2.5 million tonnes of steel per year. With this new processing to meet specific customer requirements. In addition,
facility replacing the current EAF which has been in operation specific solutions are dispatched through other business lines,
since 1997 and with additional investments to be made in other primarily ArcelorMittal Construction, ArcelorMittal Projects,
areas of the Belval steel plant, ArcelorMittal Luxembourg plants ArcelorMittal Tubular Products, ArcelorMittal Wire Solutions and
will be self-sufficient in crude steel production capacity to cover ArcelorMittal International.
the needs of finished rolled products in Luxembourg. In
AMDS also includes Industeel, with facilities in Belgium and in
particular, Mill A at the ArcelorMittal Rodange site will henceforth
France. Industeel Belgium and Industeel Creusot are designed
be supplied exclusively by this new installation for the
to produce special steel plates, ranging from 5 to 180
production of its numerous ranges of rails and niche products.
millimeters in thickness, including stainless steel products, while
The installation of the new electric furnace in Belval began in the
Industeel Loire is dedicated to extra heavy gauge products of
fourth quarter of 2023, with commissioning expected in 2025.
alloyed carbon steel. Euroform operates hot forming facilities,
See "Introduction—Sustainable development highlights - striving
mainly to transform extra heavy gauge products received from
to be a leader in the decarbonization of the steel industry".
Industeel Loire. The R&D center in Le Creusot, France is fully
ArcelorMittal Hamburg dedicated to special plate products development.
ArcelorMittal Hamburg produces billet and high quality wire rod
Furthermore, AMDS includes the scrap recycling activity
and its products are mainly sold in the European market,
combining 3 specialist scrap metal recycler assets acquired in
primarily to automotive and engineering customers.
2022 (John Lawrie Metals, ALBA) and 2023 (Riwald) with 1.3
The Hamburg site already operates Europe’s only DRI-EAF million tonnes scrap processing capacity which will enhance the
plant. ArcelorMittal Hamburg has a project underway to Company's scrap supply security and sufficiency in the
construct a demonstration plant in order to test the ability of framework of its decarbonization strategy. See "Introduction—
hydrogen to reduce iron ore into DRI on an industrial scale, and Key transactions and events in 2023".
to test carbon-free DRI in the EAF steelmaking process; see
“Business overview—Sustainable development—Climate
change and decarbonization".

The DRI plant at the Hamburg site was temporarily stopped in

September 2022 in response to market conditions and for
general repair and maintenance and restarted operations in May
2023 until early October 2023 in order to utilize the existing iron
ore pellet stock and free up storage capacity for new incoming
DRI supplies. Revamping of the DRI plant began in October
2023 and production is expected to restart in early May 2024.

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In November 2023, ArcelorMittal announced its entry into the as from the first quarter of 2024 in response to market volatility
additive manufacturing market as a steel powder supplier. The and the intention to reduce its carbon footprint.
Company is currently building an industrial scale inert gas
atomizer in Aviles, Spain to produce steel powders for additive ArcelorMittal Prijedor
manufacturing ("AdM") technologies such as laser powder bed ArcelorMittal Prijedor is an iron ore open pit mining operation
fusion (LPBF), binder jetting (BJ) and direct energy deposition located in Bosnia and Herzegovina, near the town of Prijedor.
(DED). The atomizer started production in the first quarter of The mine is a joint venture in which ArcelorMittal owns 51% and
2024, will have a large batch-size production capability, from the other 49% is owned by the local iron ore mine Ljubija. The
200 kg to 3 tonnes, and an initial annual capacity of 1000 ore is excavated at the Omarska mine and processed in the
tonnes. This will enable ArcelorMittal to supply significant processing plant. The mine supplies its final product, iron ore
volumes of steel powders with consistent quality, reliability and lumps and concentrate, to ArcelorMittal's steel plant,
traceability, meeting the high standards and specifications of the ArcelorMittal Zenica, located approximately 250 kilometers from
AdM industry. A new business unit, ArcelorMittal Powders, has Prijedor in central Bosnia.
been established to commercialize the output of the atomizer.
For further details on ArcelorMittal Prijedor mine production and
See "Introduction—Sustainable development highlights - striving
other information, see "—Mineral reserves and resources".
to be a leader in the decarbonization of the steel industry".

In November 2023, ArcelorMittal Tubular Products Europe

announced its plans to stop producing pipes at its Kraków plant

ACIS Crude Steel

Production in 2023
Unit Country Locations (in million tonnes per Type of plant Products
year) 1
Flat, Long, Pipes and
ArcelorMittal Temirtau JSC 2 Kazakhstan Temirtau 2.8 Integrated Tubes
AMKR Ukraine Kryvyi Rih 1.0 Integrated Long
Vanderbijlpark, Saldanha, Integrated Mini- Flat, Long, Pipes and
ArcelorMittal South Africa 3, 4, South Africa Newcastle, Vereeniging, 2.8 mill Downstream Tubes
Pretoria
JSC ArcelorMittal Tubular Kazakhstan Aktau n/a Downstream Pipes and Tubes
Products Aktau

Captive mining operations

ArcelorMittal
Unit Country Locations Interest (%) Type of Mine Product
Iron Ore Mine (open pit and Concentrate, lump
AMKR Ukraine Kryvyi Rih 95.1 underground) and sinter feed
Lisakovsk, Kentobe, Iron Ore Mine (open pit and Concentrate, lump
ArcelorMittal Temirtau2 Kazakhstan 100.0
Atasu, Atansor underground) and fines

ArcelorMittal Temirtau2 Kazakhstan Karaganda 100.0 Coal Mine (underground) Metallurgical coal

1. n/a = not applicable (no crude steel production).

2. On December 7, 2023, ArcelorMittal completed the sale of ArcelorMittal Temirtau, its steel and mining operation in Kazakhstan. See note 2.3 to the consolidated financial
statements and "Introduction—Key transactions and events in 2023". ArcelorMittal Temirtau's production is included in the table through the transaction closing date.
3. Blast furnace C at Vanderbijlpark plant in ArcelorMittal South Africa was idled in early November 2022 due to weaker market conditions, and was subsequently restarted in
early February 2023 once order book improved commercially.
4. On November 28, 2023, ArcelorMittal South Africa announced its plans to wind down its Longs Business, subject to due diligence and consultation processes.

ArcelorMittal South Africa ArcelorMittal South Africa has four main steel production
ArcelorMittal South Africa is one of the largest steel producers in facilities. Vanderbijlpark, Newcastle and Vereeniging (melt shop
Africa and is listed on the JSE Limited in South Africa. placed under care and maintenance at the end of October 2022)

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are located inland, while Saldanha (under care and AMKR also has iron ore captive mines located roughly within the
maintenance since the second quarter of 2020 due to the borders of the city of Kryvyi Rih, Ukraine. AMKR operates a
depressed economic environment) is close to a deep-water port. concentrating facility, along with two open pit sites and one
A metallurgical by-products division (Coke and Chemicals) was underground iron ore mine. The iron ore extracted from the
reorganized (after closure of coke oven battery #5 in Pretoria in Kryvyi Rih mining operations is processed to concentrate, sinter
the fourth quarter of 2020) and is now split into two coke-making feed and lumps and supplied primarily to the AMKR steel plant,
and by-products operations at the steel production facilities with some concentrate being shipped to other ArcelorMittal
(Vanderbijlpark and Newcastle). entities in Eastern Europe, as well as to third parties. For further
details on Ukraine mines production, see "—Mineral reserves
ArcelorMittal South Africa has a diversified range of products and resources".
and includes hot rolled plates and sheet in coil form, cold rolled
sheet, coated sheet, wire rod and sections, as well as forgings. During 2023, with respect to its steelmaking operations in Kryvyi
During 2023, 79% of its products were sold in the South African Rih, the Company continued to ramp up operations and has
domestic market, while Africa is its largest export market. It also been operating two of three blast furnaces following the restart
sells into Asia and sells minor tonnage into Europe and the of blast furnace No.8 on April 14, 2023. On June 6, 2023,
Americas. following the destruction of the Nova Kakhovka reservoir's dam,
AMKR temporarily suspended steelmaking and production of
Following restart of the Newcastle blast furnace in August 2022 rolled products to reduce water consumption. As a result, the
after planned repairs, the EAF at Vereeniging was placed under Company shut down blast furnace No.6 earlier than planned for
care and maintenance at the end of October 2022. major planned repairs but continued to operate blast furnace
No.8. In July 2023, AMKR announced that it had completed the
Further, the blast furnace C at Vanderbijlpark was idled in early
construction of a new pumping station and four kilometers of
November 2022 and was subsequently restarted in early
pipeline to supply water to the city and to ensure coverage of its
February 2023 following increased demand in the market.
production needs. AMKR is currently operating its mining
On November 28, 2023, ArcelorMittal South Africa announced facilities at 60% of capacity and steel facilities at 30% of
its plans to wind down its Newcastle works and the broader long capacity.
steel products business subject to due diligence and
ArcelorMittal Temirtau
consultation processes. Since then, the Company has been in
On December 7, 2023, ArcelorMittal completed the sale of
discussions with government representatives to determine the
ArcelorMittal Temirtau; see note 2.3 to the consolidated financial
extent of state support that could be provided to mitigate or
statements and "Introduction—Key transactions and events in
prevent the closure of these operations.
2023".
Thabazimbi Iron Ore Mine
ArcelorMittal Temirtau’s product range of flat and long steel
The Thabazimbi Iron Ore Mine (Pty) Ltd, located at Thabazimbi,
products included pig iron, continuous caster slabs, continuous
in the Limpopo Province of South Africa, was acquired by
caster billets, hot and cold rolled coils and sheets, black plates,
ArcelorMittal South Africa in 2018. Thabazimbi Iron Ore Mine
covers, tin plates, hot dipped galvanized products, color coated
currently processes existing stockpiles of iron ore from a run of
products, welded pipes and rebars. ArcelorMittal Temirtau sold
mine (unbeneficiated) and old plant discard dumps with
steel products to a range of industries, including the tube and
recoverable iron, with the aim of supplying product to the
pipe-making sectors, as well as manufacturers of consumer
Vanderbijlpark Steel Works. For further details on Thabazimbi
goods and appliances. The main markets for its products
mine, see "—Mineral reserves and resources".
included Kazakhstan, CIS, Russia and South-East Asia.
ArcelorMittal Kryvyi Rih
For details on former Kazakhstan mining operations, see "—
AMKR’s product range includes billets, rebars and wire rods,
Mineral reserves and resources".
light sections (angles) and merchant bars (rounds, squares and
strips). Its products are sold to a range of industries, such as Mining
hardware, construction, re-rolling and fabrication. The markets ArcelorMittal’s Mining segment has iron ore production facilities
for its products include Ukraine, CIS, Europe, North Africa, in Canada and Liberia. The following table provides an overview
Middle East, North America, South East Asia and Australia. of the principal mining operations of ArcelorMittal’s Mining
segment. For detailed information regarding ArcelorMittal's
In addition, AMKR includes an export sales network which
Mining segment see "—Mineral reserves and resources".
supplies a complete range of steel products not only from Kryvyi
Rih but also from other plants of the Group to customers outside
of their respective home markets.
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ArcelorMittal
Unit Country Locations Interest (%) Type of Mine Product
Iron Ore

Mt Wright, Fire Lake Iron Ore Mine (open pit), Concentrate and
AMMC Canada 85.0
and Port Cartier, Qc pellet plant, railway and port pellets

AML Liberia Yekepa 85.0 Iron Ore Mine (open pit) Fines

Investments in joint ventures

Capacity in 2023
Unit Country Locations (in million tonnes per Type of plant Products
year)
AMNS India India Hazira, Gujarat 8.8 1 Integrated Flat
Taranto, Genova, Novi
Ligure, Socova, Integrated and
Acciaierie d'Italia Italy 7.8 1, 2 Flat, Pipes and Tubes
Raconiggi, Downstream
Salerno
AMNS Calvert United States Calvert 5.3 3 Steel processing Steel finishing
4 Automotive steel
VAMA China Loudi, Hunan 2.0 Steel processing finishing

Captive mining operations

ArcelorMittal
Unit Country Locations Interest (%) Type of Mine Product
Thakurani Iron Ore Mine India Odisha 60.0 Iron Ore Mine (open pit) Lump and fines
Ghoraburhani-Sagasahi India Odisha 60.0 Iron Ore Mine (open pit) Lump and fines

1. Crude steel capacity.

2. Reflects design production capacity.
3. Flat-rolled steel products production capacity.
4. Cold rolled coils, aluminized coils, hot dip galvanized coils production capacity.

AMNS India
AMNS India is an integrated flat carbon steel manufacturer -
from iron ore to ready-to-market products with achievable crude – six service centers in the industrial clusters of Hazira,
steel capacity of 8.8 million tonnes per annum. Its manufacturing Indore, Bahadurgarh, Chennai, Kolkata and Pune. It has a
facilities comprise iron making, steelmaking and downstream complete range of flat rolled steel products, including value
facilities spread across India. added products, and significant iron ore pellet capacity with
two main pellet plant systems in Kirandul-Vizag and
In 2019, ArcelorMittal and Nippon Steel Corporation ("NSC"), Dabuna-Paradeep, which have the potential for expansion.
Japan’s largest steel producer and the third largest steel Its facilities are located close to ports with deep draft for
producer in the world, created a joint venture to own and movement of raw materials and finished goods.
operate AMNS India with ArcelorMittal holding a 60% interest
and NSC holding 40%. Through the agreement, both In terms of iron ore pellet capacity, the Kirandul-Vizag system
ArcelorMittal and NSC are guaranteed equal board has 8 million tonnes of annual pellet capacity; and the Dabuna-
representation and participation in all significant financial and Paradeep system has 12 million tonnes of annual pellet
operating decisions. capacity, following completion of expansion early September
2021. This expansion brings pellet capacity above AMNS India’s
AMNS India’s main steel manufacturing facility is located at own requirements and provide the opportunity to improve
Hazira, Gujarat in western India. It also has: operating income by fully utilizing such pellet capacity. AMNS
India has also made acquisitions of certain ancillary assets
– two iron ore beneficiation plants close to the mines in including Odisha Slurry Pipeline Infrastructure Limited in July
Kirandul and Dabuna, with slurry pipelines that then 2020 which secured an important infrastructure asset for raw
transport the beneficiated iron ore slurry to the pellet plants material supply to the Paradeep pellet plant and Hazira steel
in the Kirandul-Vizag and Dabuna-Paradeep systems; plant and a captive power plant at Paradeep in Odisha in
January 2021.
– downstream facilities in Pune, Khopoli and Gandhidham;
and

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On March 4, 2021, AMNS India and the Odisha government The resolution plan submitted for the acquisition of AMNS India
signed a memorandum of understanding for setting up a 12 in 2018 included a capital expenditure plan of approximately
million tonne integrated steel plant and a jetty in Kendrapara $2.6 billion to be implemented in two stages over six years. The
district of Odisha with an investment of INR 50,000 Crore, first stage involves investments which increase production of
subject to several pre-conditions, including making provisions finished steel goods to 7.6 million tonnes per annum. It includes
for land and iron ore mines. AMNS India is currently engaged in capital expenditure projects with respect to third line CSP caster
further studies and clearances. (completed), Paradeep pellet plant (completed), as well as coke
oven, second sinter plant and Dabuna beneficiation plant (in
On November 10, 2022, AMNS India completed the acquisition progress). The first stage also includes investment in
of Uttam Galva Steels Limited subsequently renamed AMNS maintenance to restore current assets, the implementation of an
Khopoli Limited ("AMNSK"), a downstream steel manufacturer in environmental management plan and the implementation of
Maharashtra following the approval of the resolution plan by the ArcelorMittal’s best practices on raw material sourcing, plant
National Company Law Tribunal ("NCLT") on October 14, 2022. operations, sales and product mix (in particular through greater
sophistication of the quality and markets of the steel produced
On August 26, 2022, AMNS India announced that it had reached
with a focus on developing sales to the automotive industry),
definitive agreement to acquire port, power plants and other
people management and health & safety. The second stage
logistics and infrastructure assets in India from the Essar Group
involving capital expenditure projects to increase the production
for a net value of approximately $2.4 billion. On October 19,
of finished steel goods from 7.6 million tonnes per annum to 8.6
2022, AMNS India completed the acquisition of Essar Power
million tonnes per annum is now included in the expansion
Hazira Limited, corresponding to a 270 MW multi-fuel power
investment plan launched in October 2022 as described in
plant at Hazira which has a long-term power purchase
below paragraph.
agreement with AMNS India. On November 15, 2022, AMNS
India completed the acquisition of Essar Bulk Terminal Limited, AMNS India intends to further debottleneck existing operations
corresponding to a 25 million-tonne per annum jetty at the all- (steel shop and rolling parts) in the medium term. The first
weather, deep draft bulk port terminal at Hazira, Gujarat, captive phase of expansion represents capital expenditures of
and adjacent to AMNS India’s flagship steel plant and Essar approximately $7.4 billion ($0.8 billion for debottlenecking, $1.0
Bulk Terminal Paradeep Limited, corresponding to a 12 million- billion for downstream projects and $5.6 billion for upstream
tonne per annum deep-water jetty at Paradeep, Odisha along projects) and started in October 2022. It aims to increase
with a dedicated conveyor that handles 100% of pellet production at the Hazira facility to 15 million tonnes of rolled
shipments from AMNS India’s Paradeep pellet plant. products by the first half of 2026 (Phase 1A) following the
construction of two blast furnaces (blast furnace 2 to start in
On March 7, 2023, AMNS India completed the acquisition of a
2025 and blast furnace 3 in 2026), the capacity increase of the
515 MW gas-based power plant for a cash consideration of
existing blast furnace 1 from 2.2 to 2.8 million tonnes per annum
$125 million, along with allied land that can be utilized for AMNS
and it includes also a CRM2 complex and galvanizing and
India’s expansion plans at Hazira.
annealing line, steel shop, hot strip mill and ancillary equipment
On May 6, 2023, AMNS India completed the acquisition of (including coke, sinter, networks, power, gas, oxygen plant, etc.)
Indian Steel Corporation Limited subsequently renamed AMNS and raw material handling. Continuous galvanizing line No. 4
Gandhidham Limited for a cash consideration of $99 million, a was commissioned in December 2023, which will enable AMNS
downstream steel manufacture in Gandhidham, Gujarat India to launch the Magnelis product for the growing renewable
following the approval of the resolution plan by the National energy sector. Feasibility studies are ongoing to further increase
Company Law Tribunal (‘’NCLT’’) on April 13, 2023. production in a second phase from 15 to 20 million tonnes per
annum (Phase 1B) with greenfield options being explored to
AMNS India also expects to complete the acquisition of certain further increase to beyond 40 million tonnes.
remaining assets subject to receipt of regulatory approvals.
Such assets include: In terms of mining assets, AMNS India operates the Thakurani
mine in the Keonjhar district of Odisha and the Ghoraburhani-
– a 16 million tonne per annum all-weather, deep draft Sagasahi mine in the Sudargarh district of Odisha. The
terminal at Visakhapatnam, Andhra Pradesh along with an Thakurani mine is operating at full 5.5 million tonnes per annum
integrated conveyor connected to AMNS India’s 8 million- capacity and concentrated material is transported by pipeline
tonne per annum iron ore pellet plant in the port city. from the Dabuna plant to the Paradeep pellet plant, located on
the coast at Bay of Bengal. AMNS India commenced the
– a 100-kilometer Gandhar - Hazira transmission line,
operations at the Ghoraburhani-Sagasahi iron ore mine in
connecting AMNS India’s steelmaking complex with the
September 2021. The mine is set up to gradually ramp up
central electricity grid.
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production until 2026 to a rated capacity of 7.2 million tonnes agreed, among other things, to accelerate the funding originally
per annum. The iron ore final product is supplied to the envisaged to occur in connection with the acquisition of Ilva’s
beneficiation plant in Dabuna from where the feed reaches the assets, consisting in particular of €680 million from Invitalia and
pellet plant at Paradeep and contributes significantly to meeting €70 million from ArcelorMittal (corresponding to an equivalent
AMNS India’s long-term raw material requirements. For further amount of receivables towards the Acciaierie d’Italia Group), in
details on Indian mines production and other information, see " the form of a convertible shareholder loan made available on
—Mineral reserves and resources". February 14, 2023, as a result of which, upon conversion,
Invitalia’s stake in ADI Holding would be increased to 60% and
Acciaierie d'Italia ArcelorMittal’s would reduce to 40%.
Acciaierie d'Italia, a joint venture between the Company and
Invitalia-Agenzia nazionale per l'attrazione degli investimenti e On February 20, 2024, the Italian Government issued a decree
lo sviluppo d'impresa SpA ("Invitalia"), an Italian state-owned placing Acciaierie d’Italia into extraordinary administration
company, is the leading steel producer in Italy, Europe’s second subsequent to the request of Invitalia, thereby passing control of
largest steel consuming economy. Acciaierie d'Italia produces the company from its current shareholders, ArcelorMittal and
high-quality and sustainable steel to be used in a range of vital Invitalia, to government appointed commissioners. This ended
industry sectors across the domestic steel market such as ArcelorMittal’s strategic involvement in Acciaierie d’Italia. See
construction, energy, automotive, home appliances, packaging "Introduction—Risk factors—ArcelorMittal faces risks in relation
and transport and for international export. Acciaierie d'Italia has to its interest in ArcelorMittal Italia (renamed Acciaierie d'Italia)
operations across various structurally linked operating sites (“ADI”), which has been placed in a special form of insolvency
including Europe’s biggest single-site integrated steel facility in proceedings (extraordinary administration)."
Taranto and rolling mills in Genoa and Novi Ligure. Genoa is
also an important hub in terms of intermodal logistics. Calvert
AMNS Calvert ("Calvert"), a joint venture between the Company
On April 14, 2021, pursuant to the investment agreement of and NSC, is a steel processing plant in Calvert, Alabama, United
December 10, 2020 (the "Investment Agreement") forming a States. Its 2,500 acre property layout allows for optimal product
public-private partnership between Invitalia and AM InvestCo flow and room to expand. It has a HSM with 5.3 million tonnes
Italy SpA ("AM InvestCo", thereupon renamed Acciaierie d'Italia capacity, pickling and cold rolling facilities with 3.6 million tonnes
Holding), ArcelorMittal's subsidiary party to the lease and capacity and finishing facilities with a total capacity of 2.1 million
purchase agreement for the Ilva business (the "Ilva tonnes. Calvert had a 6-year agreement to purchase 2 million
Agreement"), Invitalia invested €400 million ($476 million) of tonnes of slabs annually from ThyssenKrupp Steel USA ("TK
new equity into AM InvestCo, providing Invitalia with a 38% CSA"), subsequently acquired by Ternium S.A. in December
shareholding, equal (50%) voting and governance rights and 2017, an integrated steel mill complex located in Rio de Janeiro,
therefore joint control. Accordingly, as of April 14, 2021, the Brazil, using a market-based price formula. The slab purchase
Company derecognized assets and liabilities of Acciaierie agreement with Ternium was finished with last purchases
d'Italia Holding ("ADI Holding") and its subsidiaries from its concluded in May 2021. The remaining slabs for Calvert's
consolidated statement of financial position and accounted for operations are sourced from ArcelorMittal plants in Brazil and
its 62% interest in the joint venture under the equity method. Mexico and from ArcelorMittal USA, which following the
The investment agreement stipulated a second equity injection divestment to Cleveland-Cliffs, entered on December 9, 2020
by Invitalia, of up to €680 million, to fund the completion of the into a new five-year agreement with Calvert (with an automatic
purchase of Ilva’s business by Acciaierie d'Italia Holding, subject three-year extension unless either party provides notice of intent
to certain conditions precedent to be met initially by May 2022. to terminate) for 1.5 million tons annually for the initial term and
0.55 million tons annually under the extension and which, in
Certain of these conditions precedent (in particular due to the each case, can be reduced with a six-month notice. ArcelorMittal
existence of various judicial measures encumbering the Taranto is principally responsible for marketing the product on behalf of
plant) were not fulfilled by May 31, 2022. Accordingly, on May the joint venture. Calvert serves the automotive, construction,
31, 2022, the parties entered into amendments to the Ilva pipe and tube, service center and appliance/ HVAC industries.
Agreement and the Investment Agreement to, among other
changes, extend the longstop date for the fulfillment of the Calvert plans to invest approximately $1 billion for an on-site
conditions precedent (and, therefore, the term of the lease of the steelmaking facility through a 1.5 million tonnes capacity EAF
Ilva business) as well as the second equity injection by Invitalia (producing slabs for the existing operations and replacing part of
to May 31, 2024. At the end of December 2022, in order to the purchased slabs). Construction commenced in March 2021
address the financial consequences on the Acciaierie d’Italia after obtaining all environmental permits, and the facility is
group of the unprecedented spike in energy costs caused by the expected to start in the second half of 2024 (extended mainly
Ukraine crisis, ArcelorMittal, the Italian Government and Invitalia due to enlarged scope). Equipment erection is in progress and
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commissioning of utilities is being planned. The plan includes an Ventos de Santo Antonio
option to add further capacity of 1.5 million tonnes at lower On April 18, 2023, ArcelorMittal announced that ArcelorMittal
capital expenditure intensity. Brasil, would form the joint venture partnership Ventos de Santo
Antonio Comercializadora de Energia S.A. ("VdSA") with Casa
VAMA dos Ventos, one of Brazil’s largest developers and producers of
Valin ArcelorMittal Automotive Steel (“VAMA”) is a joint venture renewable energy projects, to develop a 554 MW wind power
between ArcelorMittal and Hunan ValinSteel Co., Ltd which project. ArcelorMittal Brasil holds a 55% stake in the joint
produces steel (1.5 million tonne capacity) for high-end venture, with Casa dos Ventos holding the remaining 45%. The
applications in the automotive industry. VAMA supplies transaction was approved by the Brazilian antitrust authority,
international automakers and first-tier suppliers as well as CADE, on April 13 and was completed on May 5, 2023. The
Chinese car manufacturers and their supplier networks. It is well $0.8 billion project aims to secure and decarbonize a
positioned to take advantage of the growing electric vehicle considerable proportion of ArcelorMittal Brasil’s future electricity
market, and in February 2021 a project was launched to needs and is estimated to provide 38% of ArcelorMittal’s Brasil’s
increase its capacity by 40% to 2 million tonnes with self-funded total electricity needs in 2030 pursuant to a 20-year power
expansion involving capital expenditures of $195 million. The purchase agreement to be entered into with the JV for the
capital expenditures related to new continuous hot galvanizing supply of electricity. The project would benefit from the attractive
line ("CGL") capacity of 450 thousand tonnes per year to reach tax incentives in Brazil especially for renewable projects which
1.6 million tonnes per year in CGL/CAL combined capacity and supports improved return on investment. VdSA is equity
2.0 million tonnes per year in pickling line and tandem cold mill accounted and ArcelorMittal’s total equity investment will be
("PLTCM"). First commercial coil was produced on January 3, $0.15 billion. The project is located in the central region of
2023 and commercial production began in April 2023. The Bahia, in north-east Brazil. The site location has been selected
project is currently at an advanced stage of implementation. due to several competitive advantages, including high-capacity
Equipment is currently in the ramp-up phase which is expected forecast load factors (in excess of 50%) and a short distance (23
to be completed by the second half of 2024. kilometers) to connect to the national electricity grid. There is
also the potential to expand the capacity of the project by adding
ZAM (Zinc Aluminium and Magnesium) pot installment was
a further 100 MW of solar power. Environmental and regulatory
completed in the second quarter of 2023 and is ready for
permitting is in the process of finalization; construction work
commissioning once TLC (technology license contract) with
started in 2023 with operational commissioning expected in
ArcelorMittal is completed. The leadership of ArcelorMittal and
2025. See "Introduction-Key transactions and events in 2023".
HNIS reached another agreement for HRC substrate pricing and
TLC in January 2024. The working team will finalize the
agreement in the first quarter or 2024, which will earmark
licensing of new products and coatings including Magnelis®.

Capital expenditures
The Company’s capital expenditures were $4.6 billion, $3.5 billion and $3.0 billion for the years ended December 31, 2023, 2022 and
2021, respectively. The following table summarizes the Company’s principal growth and optimization projects involving significant
capital expenditures that are currently ongoing. In 2024, capital expenditures are expected to be in the range of $4.5 to 5.0 billion of
which $1.4 to $1.5 billion is expected as strategic growth capital expenditure. ArcelorMittal expects to fund these capital expenditures
primarily through internal sources. See “Operating and financial review—Liquidity and capital resources—Sources and uses of cash—
Net cash used in investing activities” and note 3.1 to the consolidated financial statements for further information, including capital
expenditures by segment.

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Ongoing Projects*
Key date /
Segment Site / Unit Project Capacity / particulars Forecast Note #
completion
Increase hot dipped / cold rolled coil capacity and
ArcelorMittal Vega construction of a new 700 thousand tonne First half
Brazil Expansion project a
Do Sul continuous annealing line ("CAL") and continuous 2024
galvanizing line ("CGL") combiline
Increase in liquid steel capacity by 1 million tonnes
Sinter plant, blast furnace Second half
Brazil Monlevade per year; sinter feed capacity of 2.25 million tonnes b
and melt shop 2026
per year
4.5 million tonnes per year Facilities to produce 4.5 million tonnes per year DRI
Second half
Brazil Serra Azul mine direct reduction pellet feed quality pellet feed by exploiting compact itabirite c
2024
plant iron ore
Increase capacity of HAV bars and sections by 0.4 Second half
Brazil Barra Mansa Section mill d
million tonnes per year 2024

Facilities to produce 170 thousand tonnes non-grain

oriented electrical steels (of which 145 thousand
New Electrical Steels Second half
Europe Mardyck (France) tonnes for auto applications) consisting of annealing e
production facilities 2024 (ACL)
and pickling line (APL), reversing mill (REV) and
annealing and varnishing (ACL) lines

Construction of a new 1.1 million tonnes per year

1.1 million tonnes EAF EAF to enable the production of low carbon- First half
Europe Gijón (Spain) f
project emissions steel for the long products sector, 2026
specifically rails and wire rod

Revamping and capacity Revamping project with 1 million tonnes per year
Las Truchas mine Second half
NAFTA increase to 2.3 million tonnes pellet feed capacity increase (to 2.3 million tonnes g
(Mexico) 2025
per year per year) with DRI concentrate grade capability
Fourth
Phase 2 premium product Increase production capacity targeting 15 million quarter 2024
Mining Liberia h
expansion project tonnes per year (first
concentrate)

Andhra Pradesh First half

Others Renewable energy project 975 MW of nominal capacity solar and wind power i
(India) 2024

Joint ventures
Debottlenecking existing assets; AMNS India
medium-term plans are to expand and grow initially
to approximately 15 million tonnes per year by early
2026 in Hazira (phase 1A); ongoing downstream First half
AMNS India Hazira (Gujarat) Expansion project projects; (Phase 1B to 20 million tonnes per year j
2026
planned; plans for expansion to 24 million tonnes per
year (including 1.5 million tonnes per year long
capacity) under preparation; additional greenfield
opportunities under development

AMNS Calvert New 1.5 million tonnes EAF Second half

Calvert New 1.5 million tonnes per year EAF and caster k
(US) and caster 2024

*Ongoing projects refer to projects for which construction has begun (excluding various projects that are under development), even if such projects have
been placed on hold pending improved operating conditions.

a. The Vega Do Sul expansion project aims to serve the growing domestic market. The approximately $0.35 billion investment program (and the option to add approximately
100 thousand tonnes organic coating line to serve construction and appliance segments) will upon completion strengthen ArcelorMittal’s position in the fast growing
automotive and industry markets through AHSS products. The pickling line and tandem cold mill produced their first coil in June 2023 while continuous galvanizing and
continuous annealing lines are expected to be completed in the first half of 2024.
b. The Monlevade upstream expansion project has recommenced in late 2021. Capital expenditure is estimated at $0.8 billion.
c. The project represents an investment of approximately $350 million. The DRI quality pellet feed is expected to primarily supply ArcelorMittal Mexico steel operations. All
administrative buildings are delivered; industrial civil works and mechanical assembly are in progress.
d. The aim of the $0.25 billion investment in sections mill at Barra Mansa (Brazil) is to deliver higher added value products ("HAV") (merchant bar and special bars) to
increase domestic market share in HAV products and to enhance profitability.
e. ArcelorMittal, with the support of the French government, is creating a new production unit for electrical steels at its Mardyck site in the north of France. This new unit will
specialize in the production of electrical steels for the engines of electric vehicles and which complements ArcelorMittal’s existing electrical steels plant in Saint-Chély

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d’Apcher, in the south of France. The completion of the $0.5 billion investment program will occur in 2 steps: the commissioning and start of ramp-up of the end-of-
streamline (annealing and coating line and related installations) is expected in the second half of 2024; the start-up of the APL and the REV is expected to occur in the
second quarter of 2025.
f. See “Business overview—Sustainable development—Climate change and decarbonization".
g. The approximately $0.15 billion investment project will enable concentrate production to the blast furnace route (2.0 million tonnes per year) and DRI route (0.3 million
tonnes per year) for a total of 2.3 million tonnes per year. Primary target is to supply ArcelorMittal Mexico steel operations with high quality feed. Due to delay in equipment
delivery and construction works, production is expected to start in the second half of 2025.
h. ArcelorMittal Liberia has been operating at 5 million tonnes of direct shipping ore ("DSO") since 2011 (Phase 1). The Company restarted construction of a concentrator
and associated infrastructure (Phase 2) that targets 15 million tonnes per annum of premium iron ore product. Deliveries of key equipment, structure, concentrator/
material handling systems and construction is progressing to plan. Capital expenditure required to conclude the project sustaining an extended mine life producing 65%
grade product is expected at $1.4 billion. Large resource supports a potential future increase in capacity; in this respect a plan for the phased development of up to 30
million tonnes per year capacity is being studied (including part or full DRI quality concentrate production). Subsequently to first concentrate, full completion is expected to
occur in fourth quarter of 2025.
i. See “Business overview—Sustainable development—Climate change and decarbonization".
j. See “—Investments in joint ventures".
k. See “—Investments in joint ventures".

In addition, in 2023, the Company approved 26 multi-year environmental projects in "Business overview—Sustainable
projects with identified environmental benefits and involving development".
capital expenditures of $291 million and 46 multi-year projects
with identified energy benefits and involving capital expenditure ArcelorMittal's joint ventures have also announced significant
of $1,716 million (including renewable energy projects in India). capital expenditure projects. See "Property, plant and equipment
The latter also includes 23 multi-year projects specifically —Investments in joint ventures" and "Property, plant and
targeted to decarbonization involving capital expenditures of equipment—Capital expenditures".
$729 million. Capital expenditures related to decarbonization
initiatives amounted to $0.2 billion for the year ended December
31, 2023 and are expected to increase to between $0.3 to $0.4
billion in 2024. See also further information on key

Mineral reserves and resources

ArcelorMittal has iron ore production facilities in Canada, Mexico, South America, Europe, Africa, Ukraine and in India through its joint
venture AMNS India. ArcelorMittal also operated iron ore and coal production facilities in Kazakhstan, which were sold on December 7,
2023. See "Introduction— Key transactions and events in 2023" and note 2.3 to the consolidated financial statements for further
information. The Company has two categories of mining operations, namely captive mines, and seaborne oriented operations. Captive
mines, whose production is mainly consumed by their respective steel segments, form part of such segments. The seaborne iron ore
mining operations at AMMC and AML correspond to the Mining segment.

ArcelorMittal considers its iron ore mining operations in aggregate to be material to its business.

The following table provides an overview of ArcelorMittal’s principal mining operations. The production of Run of Mine ("ROM") iron ore
and coal is that which is attributable to ArcelorMittal, based on ArcelorMittal's ownership interest in the mining operations. All production
figures below are stated as wet tonnages.

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% of Ownership Type of Ownership In Operation

Operations/Projects Segment Interest Interest Since
Iron Ore
Mexico (Excluding Peña Colorada) NAFTA 100.0 subsidiary 1976
Peña Colorada - Mexico NAFTA 50.0 joint operation 1974
Brazil Brazil 100.0 subsidiary 1944
Bosnia Europe 51.0 subsidiary 2008
AMKR Open Pit ACIS 95.1 subsidiary 1959
AMKR Underground ACIS 95.1 subsidiary 1933
1
Kazakhstan Open Pit ACIS 100.0 subsidiary 1976
Kazakhstan Underground1 ACIS 100.0 subsidiary 1956
AML Mining 85.0 subsidiary 2011
AMMC Mining 85.0 subsidiary 1976
India Not Consolidated 60.0 joint venture 1961
Baffinland Not Consolidated 25.2 associate 2014
2021 aggregate ROM iron ore production, millions of tonnes 115.1
2022 aggregate ROM iron ore production, millions of tonnes 102.5
2023 aggregate ROM iron ore production, millions of tonnes1 98.4
Coal
Karaganda - Kazakhstan ACIS 100.0 subsidiary 1956
2021 aggregate ROM coal production, millions of tonnes 8.3
2022 aggregate ROM coal production, millions of tonnes 7.0
1
2023 aggregate ROM coal production, millions of tonnes 5.8
1. Total ROM iron ore and coal production in 2023 includes Kazakhstan iron ore and coal mining operations, which were sold on December 7, 2023. Iron ore and coal
production is included in the table through the transaction closing date.

Summary of ArcelorMittal’s Mining Operations

ArcelorMittal's iron ore mining operations include the captive
mines of the NAFTA, Brazil, Europe and ACIS segments and
AMMC and AML in the Mining segment. ArcelorMittal has either
100%, equal or majority interest in these mining operations. In
addition, the Company owns a 60% interest in the AMNS India
joint venture and has a 25.23% non-controlling interest in
Baffinland. ArcelorMittal's mining operations included full
ownership of the captive iron ore and coal mines in Kazakhstan
forming part of the ACIS segment, until the sale of ArcelorMittal
Temirtau.

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Iron ore operations operation with Ternium, the Peña Colorada mine. In 2019, the El
Volcan mine was closed and ArcelorMittal continues to operate
NAFTA certain parts of the El Volcan facilities to process material
coming from the San José mine.
ArcelorMittal Mexico Mining Assets
ArcelorMittal Mexico operates three iron ore mines in Mexico,
the San José and Las Truchas mines, and through a joint

LOCATION MAP - NAFTA

2023 2022 2021
% of Product Product Product
Ownership ROM Millions Millions of ROM Millions Millions of ROM Millions Millions of
Interest of Tonnes Tonnes of Tonnes Tonnes of Tonnes Tonnes

Peña Colorada - Mexico 50.0

At 100% 12.8 4.1 13.5 4.1 11.8 4.1
At ownership interest (50%) 6.4 2.05 6.75 2.05 5.9 2.05
Mexico (Excluding Peña Colorada) 100.0
Las Truchas 3.0 1.4 4.2 1.4 4.4 1.5
San Jose/El Volcan 1.4 0.7 2.4 1.0 3.0 1.3

NAFTA, (100% basis) 17.2 6.2 20.1 6.5 19.2 6.9

NAFTA, (ArcelorMittal ownership
basis) 10.8 4.15 13.4 4.5 13.3 4.8

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Peña Colorada
Peña Colorada is the operator of a production stage surface iron injecting through older sedimentary rocks. The mineralization of
ore mine, located 60 kilometers to the north-east of the port city the Las Truchas iron deposits occurs in disseminated and
of Manzanillo, in the province of Minatitlán in the north-western irregular massive concentrations of magnetite within
part of the State of Colima, Mexico. ArcelorMittal holds 50% of metamorphic rocks and skarns. The mineralization also occurs
Peña Colorada through a joint operation with Ternium, who as fillings of faults, breccia zones, and fractures.
owns the other 50% interest.
Mining activities consist of open pit mining, crushing, dry
Peña Colorada controls a total of 3,834 hectares of surface cobbing to generate pre-concentrate, and a concentration plant.
rights and holds mineral rights over 39,977 hectares (98,782
The concentrator includes two primary crushers, two secondary
acres) across 20 concessions. Government concessions are
crushers and three tertiary crushers, two ball mills, two bar mills
granted by the Mexican federal government for a period of 50
and two wet magnetic separation circuits. The concentrated ore
years and are renewable. The expiration dates of the current
is pumped from the mine site through a 26 kilometer slurry
mining concessions range from 2043 to 2062.
pipeline to the steel plant facility in Lázaro Cárdenas.
Peña Colorada is a complex polyphase iron ore deposit. The
ArcelorMittal Mexico launched a project to increase pellet feed
iron mineralization at Peña Colorada consists of banded to
production to 2.3 million tonnes per annum and improve
massive concentrations of magnetite within breccia zones and
concentrate grade in Las Truchas; see "—Capital expenditures".
results from several magmatic, metamorphic and hydrothermal
mineralization stages with associated skarns, dykes and late San José
faults sectioning the entire deposit. The San José Mine is a production stage iron ore mine located
approximately 40 kilometers South-East of the town of Culiacán,
Peña Colorada operates an open pit mine as well as a
the capital of the State of Sinaloa, México. Mining at San José
concentrating facility and a two-line pelletizing facility. The ore is
began in 1946 and was handled by multiple owners until 2019,
mined by truck and shovel/loader method. The beneficiation
when ArcelorMittal secured a lease agreement and commenced
plant and the pelletizing plant are located at the mine and in
mining and pre-concentration operations. ArcelorMittal’s interest
Manzanillo, respectively. Major processing facilities include a
in the San José mine is 100%.
primary crusher, a dry cobbing plant, two autogenous mills,
three horizontal and two vertical ball mills and several stages of ArcelorMittal Mexico holds mineral concessions for 30 hectares
magnetic separation. The concentrate is sent as a pulp through supporting the San José mining and pre-concentration
a pipeline from the mineral processing plant to the pelletizing operations. Additionally, ArcelorMittal Mexico holds mineral
facilities. The magnetite concentrate and pellets are transported rights over 1,053 hectares which previously supported its now
from Manzanillo to ArcelorMittal Mexico, as well as to Ternium’s closed El Volcan operations, located approximately 68
steel plants, by ship and by rail. kilometers northwest of the city of Obregon. The El Volcan
processing facilities, including the concentration plant and port
Las Truchas
installations, continue to operate by processing ores from the
Las Truchas is a production stage mine located approximately
San José mine.
27 kilometers north-west of the town of Lázaro Cárdenas in the
State of Michoacán, Mexico. ArcelorMittal holds a 100% interest. ArcelorMittal Mexico has a lease agreement secured from Ejido
Las Flechas, for both the land and the San José facilities, which
ArcelorMittal Mexico holds mineral rights over 53,812 hectares,
is in place for a period of ten years and is valid until 2028.
of which 4,261 support the Las Truchas operations in Mexico.
Previous mine operators have secured surface rights to the
Government concessions are granted by the Mexican federal
project from the Ejido in the past and it is reasonable to assume
government for a period of 50 years and are renewable. The
that ArcelorMittal Mexico can continue to secure surface rights
expiration dates of the current mining concessions range from
beyond 2028.
2044 to 2059.
San José is a metasomatic deposit, produced by hydrothermal
The Las Truchas deposits consist of massive concentrations of
replacement, with epidote-garnet skarns located in the contact
magnetite of irregular morphology. The main Las Truchas
zone between a Cretaceous limestone unit and a granodioritic
deposits occur along a geological trend that is about seven
intrusive. The mineralization is primarily composed of magnetite,
kilometers long and about two kilometers wide. The Las Truchas
with minor hematite. Accessory sulfide minerals including pyrite
mineral deposits have been classified as hydrothermal deposits,
and chalcopyrite are also present.
which may have originated from late-stage plutonic activity
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Ore is mined from the open pit using conventional mining BRAZIL
methods and processed into a pre-concentrate by a crushing ArcelorMittal Brasil operates the Andrade mine and Serra Azul
and screening circuit with dry magnetic separation. The pre- Mineração mines.
concentration facilities at the mine include one primary crusher,
one secondary crusher, a dry cobbing high-intensity magnetic
pulley and one tertiary crusher. The pre-concentrate is then
shipped 30 kilometers by road to a rail head located in Quila,
where it is railed 450 kilometers to the El Volcan concentrator.
The concentration plant at El Volcan includes two ball mills, a
magnetic separation circuit, flotation systems, a belt conveyor
filter and a disposal area for tailings. The major port installations
include a tippler for railroad cars, a conveyor, transfer towers
and two ship loading systems. At El Volcan, the pre-concentrate
is milled and concentrated via wet magnetic separation to
produce the final concentrate, which is transported 150
kilometers by rail to the Port of Guaymas where it is loaded onto
ships and sent 1,400 kilometers to the Port of Lazaro Cardenas.

LOCATION MAP - BRAZIL Mining Operations

2023 2022 2021

% of Product Product Product
Ownership ROM Millions Millions of ROM Millions Millions of ROM Millions Millions of
Interest of Tonnes Tonnes of Tonnes Tonnes of Tonnes Tonnes

Andrade 100 2.4 2.0 2.3 1.8 2.1 1.8

Serra Azul 100 2.7 1.5 2.6 1.5 2.6 1.6
Brazil 5.1 3.5 4.9 3.3 4.7 3.4

Andrade Mine by the Long products division of ArcelorMittal Brasil, with all
The Andrade Mine is a production stage open pit iron ore mine, production supplying the Monlevade steel plant.
located 5 kilometers away from the town of João Monlevade and
80 kilometers east of Belo Horizonte in the Brazilian state of ArcelorMittal’s operations control all of the mineral rights and
Minas Gerais. The Andrade mine is 100% owned and operated surface rights needed to mine and process its estimated iron ore
reserves, dominated by directly shippable hematite ore.

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ArcelorMittal Brasil holds mineral rights of over 2,421 hectares expenditures") contemplating the mining and processing of
and land lease over 3,347 hectares to support its current semi-compact and compact ores.
operation. Mining legislation in Brazil does not predetermine the
duration of mineral rights and as such these rights are The Serra Azul mine also operates a processing plant consisting
considered valid to the point of mine exhaustion. of a crushing facility and a three-line concentration facility,
including screening, magnetic separation, spirals separators and
The Andrade deposit is located in the north-eastern portion of jigging. Iron ore product is transported by truck to two railway
the Iron Quadrangle. The base stratigraphic section consists of terminals located 35 and 50 kilometers from the mine site for
quartzites and sericite-quartzites of the Moeda formation, distribution to local purchasers of sinter feed or for export
followed by schists of the Batatal formation, both forming the through third-party port facilities located in the Rio de Janeiro
Caraça group. The iron rich mineral bodies are part of the State.
overlying Cauê formation, which represents the base of the
Itabira Group. The Caraça and Itabira groups compose the base In 2021, an updated resource model was generated,
of the Paleoproterozoic Minas Supergroup. The Cauê formation incorporating the results of a 1,508 meter drilling program
rocks are covered by dolomites and marbles, and sometimes completed in late 2020. The drilling program targeted further
weathered phylites and schists, belonging to the Gandarela definition of the friable itabirite ("IF") ore bodies and the updated
formation. model has been used to reassess the mine life for the current IF
phase of the Serra Azul Mine. This resulted in a revised life of
In addition to the open pit mine, the Andrade mine operates a mine for the IF phase, with mining operations extended until
crushing and screening facility, as well as a concentration plant 2024. No additional drilling occurred in 2022 and 2023.
used to improve the quality of the sinter feed to the Monlevade
plant. This concentration plant commenced production in early Following the integration of the Serra Azul Mine into
2020 and concentrates the itabirite ores, enabling mixing with ArcelorMittal Brasil in 2020, an expansion project for the Serra
the higher-grade hematite ores. The concentrated iron ore Azul Mine has been approved, extending the mine's life until
product is transported to the Monlevade steel plant through a 2057. The project considers producing 4.5 million tonnes per
private railway line. annum of DRI quality pellet feed by processing compact itabirite
("IC") and semi-compact itabirite ("ISC") material. The IC and
In 2022, the resource model of Andrade has been updated, ISC processing plant operations are scheduled to start in the
resulting in a new pit optimization and mine schedule, with second half of 2024 (see also "—Capital expenditures).
updated Life of Mine schedule for the Itabirite and Hematite
ores. The new life of mine extends to 2054, with increased In February 2019, the Company decided to implement the
annual ROM capacity up to 4.5 million tonnes after 2027. evacuation plan related to its dormant Serra Azul tailing dam.
The community situated downstream to the dam was evacuated
Serra Azul Mine as a precautionary measure based on an updated stability
ArcelorMittal Mineração Serra Azul mine is a production stage report following incidents in the Brazilian mining sector. This was
open pit iron ore mine located approximately 50 kilometers done to enable further testing and implementation of any
southwest of Belo Horizonte in the Minas Gerais State of Brazil. additional mitigating measures. As a result, the Company has
The mine is 100% owned and operated by ArcelorMittal Brasil. executed an agreement with the Federal and State Public
Prosecutors Offices and affected families to provide temporary
ArcelorMittal Brasil controls all of the mineral and surface rights assistance to the families and set technical measures required
needed to mine and process its iron ore reserves. ArcelorMittal to re-establish factor of safety standards. Such agreement was
Brasil holds mineral rights over the Central and East claims of extended in February 2020 and negotiations regarding
the Serra Azul deposit of over 375 hectares and surface rights compensation continued in 2021, during which a
over 281 hectares. Mining legislation in Brazil does not Complementary Agreement Term was signed with new
predetermine the duration of mineral rights and as such these guidelines for compensation parameters for the impacts caused
rights are considered valid to the point of mine exhaustion. by preventive evacuation. As of December 31, 2023, the
Company had entered into 584 indemnification agreements with
The Serra Azul mine is located in the North-Eastern portion of
the affected families. The agreement contemplates the
the Iron Quadrangle, in the iron rich Cauê Formation of the
construction of a check dam structure by 2025 and the tailing
Itabira Group. The mineralization occurs as friable, semi
dam deconstruction by 2032.
compact and compact itabirites and banded hematite-silica
rocks, with varying degrees of weathering and oxidation. EUROPE
Currently, Serra Azul mines and processes the friable itabirite ArcelorMittal Prijedor is the only captive mining operation within
with the Serra Azul expansion project (see "—Capital the Europe segment.

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LOCATION MAP - EUROPE Mining Operation

2023 2022 2021

% of Product Product Product

Ownership ROM Millions Millions of ROM Millions Millions of ROM Millions Millions of
Interest of Tonnes Tonnes of Tonnes Tonnes of Tonnes Tonnes
ArcelorMittal Prijedor 51.0
At 100% basis 1.7 1.2 1.7 1.3 1.8 1.6
At ownership interest (51%) 0.9 0.6 0.8 0.7 0.9 0.8

ArcelorMittal Prijedor
The Omarska mine is a production stage surface iron ore mine In 2022, ArcelorMittal Prijedor acquired additional mining and
in Bosnia and Herzegovina, operated by ArcelorMittal Prijedor. land rights and started iron ore mining on a trial basis at Ljubija
The mine is located 25 kilometers south-east of the town of Mine with a plan for full production to be reached in 2025.
Prijedor, where the ArcelorMittal Prijedor headquarters are Product from Ljubija mine is blended with the product from
based. ArcelorMittal Prijedor was founded in 2004 as a Omarska mine and is supplied to ArcelorMittal Zenica steel
partnership between ArcelorMittal (at the time LNM Holdings) plant.
with a 51% controlling interest and local mining company Iron
The Omarska mine’s current concession was signed in 2018 for
Ore Mine Ljubija owning the remaining 49% stake. ArcelorMittal
a period of 6 years. The property comprises 1,946 hectares of
Prijedor is a captive mine of the Europe segment and supplies
land and mineral rights. The Ljubija mine’s current concession
all of its iron ore production to the ArcelorMittal Zenica steel
was signed in 2022 for a period of 6 years. The property
plant.
comprises 739 hectares of land and mineral rights. ArcelorMittal

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Prijedor is the registered holder of the mining rights at the The Ljubija deposit is located within Carboniferous and
Omarska mine exploitation field. Land tenure and mineral rights Permian-Triassic formation rocks which are partly covered by
issued to ArcelorMittal Prijedor are indefinite and considered to thin Quaternary rocks. The ore within these formations is
be of sufficient duration to enable all reported mineral reserves primarily composed of siderite and ankerite with secondary
on the properties to be mined in accordance with current life of limonite iron facies.
mine production schedules.
The ore is excavated from the Omarska and Ljubija deposits by
The Buvac deposit at the Omarska mine is located within traditional truck and shovel open pit mining methods. At the
Carboniferous clastic (shale and sandstones) and carbonate Omarska mine, after a primary stage of crushing within the pit,
(limestone, dolomite, and ankerite) sequences, with massive the ore is transported to a processing plant via a conveyor. The
siderite-limonite mineralization forming an integral part of the processing plant on site performs crushing, screening, gravity
formation. Iron ore from the Buvac deposit is predominantly separation, magnetic separation and filtration. At the Ljubia
limonite-goethite with associated quartz, carbonates, and mine, ore is crushed and screened and sent to the Omarska
silicates of the illite type. The limonite-goethite mineralization mine processing plant for product blending.
was formed during the oxidization of the upper parts of the
primary siderite bodies. ACIS
Iron ore mining operations forming part of the ACIS segment
The ore body is asymmetrical, lens-shape and elongated in a include AMKR open pit and underground mines in Ukraine and
northeast - southwest direction, dipping at about 8° toward the Thabazimbi mine in South Africa. ArcelorMittal Temirtau Orken
north-east from the surface to a depth of 210 meters. The open pit and underground iron ore mines in Kazakhstan were
deposit is approximately 1.5 kilometer long and 1.0 kilometer part of the ACIS segment until the sale of ArcelorMittal Temirtau.
wide.

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LOCATION MAPS - ACIS Mining Operations

2023 2022 2021

% of Product Product Product
Ownership ROM Millions Millions of ROM Millions Millions of ROM Millions Millions of
Interest of Tonnes1 Tonnes1 of Tonnes Tonnes of Tonnes Tonnes
AMKR Open Pit 95.1
At 100% basis 11.1 4.6 11.3 4.5 25.7 11.0
At the ownership interest 10.6 4.4 10.7 4.3 24.4 10.5

AMKR Underground 95.1

At 100% basis 0.3 0.3 0.4 0.4 0.7 0.7
At the ownership interest 0.3 0.3 0.3 0.4 0.7 0.7
ArcelorMittal Temirtau Open Pit
(Lisakovsk, Kentobe and Atansor)1 100.0
At 100% basis 2.2 1.4 2.5 1.4 3.6 1.8
ArcelorMittal Temirtau Underground
(Atasu)1 100.0
At 100% basis 1.6 1.0 2.0 1.3 1.8 1.5
ACIS at 100% basis 15.2 7.3 16.2 7.6 31.7 14.9
ACIS at the ownership interest 14.7 7.1 15.5 7.4 30.5 14.4
1. The total production related to ArcelorMittal Temirtau is included in the table through the transaction closing date on December 7, 2023.

ArcelorMittal Kryvyi Rih

AMKR is a production stage iron ore mining complex located AMKR operates two open pits over the Novokryvorizke (Mine 2
predominantly within the borders of the city of Kryvyi Rih, 150 on the map) and Valyavkinske (Mine 3 on the map) deposits,
kilometers southwest of Dnipro, Ukraine. The mine is 95.1% and an underground mine at the high-grade iron ore deposit of
owned by ArcelorMittal and is integrated into the ArcelorMittal Kirova. Operations began at the Kryvyi Rih open pit mines in
Kryvyi Rih steel business as a captive mine. ArcelorMittal 1959 and at the Kryvyi Rih underground mine in 1933.
acquired the operations in 2005.
AMKR's operations control all of the mineral rights and surface
rights needed to mine and process its estimated iron ore
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reserves, holding mineral rights over 775 hectares and surface mines. Final iron ore products were transported to the
rights over 4,827 hectares to support its surface operations, and ArcelorMittal Temirtau steel plant by railway.
57.9 hectares of mineral and 160 hectares of surface rights for
the underground mine operation. The subsoil use permits for the South Africa
underground mine were renewed in 2021 for the next 20 years, The Thabazimbi mine in the Limpopo Province of South Africa is
and for the surface pits, mineral rights are due to expire in 2038, an exploration stage captive mine of ArcelorMittal South Africa
with the land lease agreements being valid until 2060 and 2061, ("AMSA") steel. AMSA took full ownership of the Thabazimbi
respectively. operations from Kumba Iron Ore in November 2018.

The iron ore deposits are located within the southern part of the Open pit operations at Thabazimbi ceased in 2016, and the
Krivorozhsky iron-ore basin. The iron mineralization at mine is currently only engaged in the rehandling of iron ore from
Novokryvorizke and Valyavkinske deposits is hosted by early stockpiles of ROM material from historical production.
Proterozoic rocks containing multiple altered ferruginous
The Thabazimbi mine holds surface rights over 10,952.8
quartzite strata with shale layers. The major iron ore bearing
hectares and mineral rights over 8,662.3 hectares, valid until
units in the open pit mines have a carbonate-silicate-magnetite
2039.
composition. In addition, oxidized, iron-rich quartzite is mined
simultaneously with primary ore and is stored separately for In 2023, mining consultancy VBKOM was contracted to update
possible future processing. Only the magnetite mineralization is a pre-feasibility study and estimate the remaining in-situ mineral
included in the 2023 open pit iron ore reserve estimates. The resources for Vanderbijl deposit, which are reported in this
high-grade iron ore of the Kirova deposit is hosted by a report. A decision related to further studies to define mineral
ferruginous quartzite with martite and jaspilite. reserves and the life of the mine will be taken in 2024.

Along with the two open pit sites and an underground mine, The Vanderbijl iron ore deposit at Thabazimbi, for which the
AMKR operates a concentrating facility and a crushing facility to resources are estimated, is located on the northern margin of
produce its final product. The iron ore extracted from the open the Transvaal sub-basin. The Transvaal Supergroup was
pits is crushed at the mine site through primary crushing, loaded deposited in an open marine sedimentary basin developed on
on a rail-loading facility and transported to the concentrator. The the Kaapvaal Craton within fluvial, deltaic to marine depositional
concentration facility includes crushing, grinding, classification, environments. The iron ore deposits are developed at or close
magnetic separation and filtering. The iron ore is extracted from to the transitional contact zone of the combined footwall
the underground mine by a modified sub-level caving method dolomites and upper transitional shale beds (including the
and is crushed and screened at surface into lump and sinter ore, overlying an approximately 15 meter thick chert-rich shale layer)
before being transported by rail to the steel plant. The AMKR of the Malmani Subgroup and the overlying BIFs of the Penge
steel plant is the main consumer of the mine’s products. Formation.
As a result of the ongoing war in Ukraine, iron ore production
was planned according to the consumption at AMKR steel plant
and logistics availability. In 2023, the production was maintained
stable at approximately 45% of its maximum capacity. Mining at
open pit continued without stoppages in 2023. There was a
temporary stoppage at the underground mine in the first quarter
of 2023 and again in December 2023, due to lower demand for
sinter ore. In 2022, iron ore production was approximately at
55% of capacity during the first half. During the third quarter,
iron ore production was temporarily suspended due to weaker
demand and logistic constraints but restarted at the beginning of
October 2022, approximately at 25% level.

ArcelorMittal Temirtau Iron Ore Mining Assets

ArcelorMittal Temirtau had four iron ore mining operations in
Kazakhstan, out of which three open pit mines, Lisakovsk,
Kentobe and Atansor, and one underground mine, Atasu. Until
the sale of ArcelorMittal Temirtau on December 7, 2023, the
mines were 100% owned by ArcelorMittal and integrated into
and operated by ArcelorMittal Temirtau steel business as captive

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MINING
Iron ore mining operations forming part of the Mining segment include AMMC in Canada and AML in Liberia.

LOCATION MAP - AMMC

LOCATION MAP - AML

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2023 2022 2021

% of ROM Product ROM Product ROM Product

Ownership Millions of Millions of Millions of Millions of Millions of Millions of
Interest Tonnes Tonnes Tonnes Tonnes Tonnes Tonnes
AMMC 85.0
At 100% basis 65.3 22.4 66.9 24.1 65.6 22.0
At ownership interest (85%) 55.5 19.0 56.9 20.5 55.8 18.7
AML 85.0
At 100% basis 3.9 3.6 4.3 4.4 4.6 4.2
At ownership interest (85%) 3.3 3.0 3.6 3.8 3.9 3.6
Mining segment at 100% basis 69.2 26.0 71.2 28.5 70.2 26.2
Mining segment at the ownership interest 58.8 22.0 60.5 24.3 59.7 22.3

AMMC
AMMC is structured in two partnerships ArcelorMittal Mining and can be renewed as needed, with reports on material moved
Canada G.P. and ArcelorMittal Infrastructure Canada G.P., disclosed to the government on a yearly basis.
which are both held at 85% by ArcelorMittal with a 15% non-
The Mont-Wright, Fire Lake and Mont-Reed deposits are all
controlling interest held by 9404-5515 Québec Inc., a
Lake Superior–type banded iron formations, the metamorphic
consortium constituted, among others, of POSCO, South
equivalent to other iron formations within the Labrador Trough
Korean Steel Company and China Steel Corporation.
iron district. While Mont-Wright and Fire Lake are hematite-rich
AMMC is a production stage property, including two deposits at deposits, Mont-Reed has a greater ratio of magnetite.
Mont-Wright and Fire Lake, and another deposit at Mont-Reed.
Mont-Wright and Fire Lake are surface pit producing mines, with
The mines at Mont-Wright and Fire Lake are operated by AMMC
the mining operations carried out in conventional large-scale
and are both open-pit producing mines, consolidated in one
open pits employing industry standard technology and
production schedule and life of mine supporting the AMMC
equipment to mine ore with grades averaging approximately
property's disclosed mineral reserves. The deposit at Mont-
29% Fe.
Reed is currently in an exploration stage.
All mined ore from Mont-Wright and Fire Lake is processed at
The Mont-Wright and Fire Lake deposits are located in Québec,
the Mont-Wright processing plant, with material from Fire Lake
Canada. Mont-Wright is located near Fermont, and Fire Lake is
brought in by train. Feed ore material is fed through the crusher
located 85 kilometers south-east of Fermont. The Mont-Reed
and concentrated in the processing plant in Mont-Wright using a
deposit is located approximately 130 kilometers southwest of
gravity separation method. Concentrate is shipped to Port-
Mont-Wright. Along with the Mont-Wright and Fire Lake mines,
Cartier, Québec, Canada, via private railroad, to the pelletizing
AMMC operates an ore processing plant located on-site at
facilities and port operations. The main products sold are
Mont-Wright, as well as a pelletizing plant located at the Port-
concentrate and a variety of pellets.
Cartier port.
AML
Headquarters of the mines are based in Greater Montreal.
AML is an open pit production stage property and has been
Fermont, the town site built to support the mining operations, is
mining direct shipping ore ("DSO") from the Mt. Tokadeh, Mt.
located 16 kilometers east of the Mont-Wright mining complex
Gangra, and Mt Yuelliton deposits in northern Liberia, since
and is connected by Highway 389 to Baie-Comeau, which is 570
2011. ArcelorMittal’s ownership of AML is 85%, with the
kilometers away. The Mont-Wright and Fire Lake mines are
remaining 15% owned by the Liberia Government. The
located approximately 400 kilometers north of the city of Port-
construction of the mine commenced in 1960 by a group of
Cartier and approximately 1,000 kilometers north-east of
Swedish companies, which ultimately became the Liberian
Montreal.
American-Swedish Minerals Company (“LAMCO”), and
AMMC mining property comprises 38,748 hectares of mineral production commenced at the Nimba deposit in 1963. After
rights across six mining leases, five patented parcels and 698 LAMCO ceased production in 1992, AML signed a Mineral
map designated claims. Patented parcels have no expiration Development Agreement (MDA) in 2005 with the Liberian
dates or lease fees whereas active leases are valid for a period Government. On December 28, 2006, AML signed the First
of ten years. All current leases expire between 2025 and 2033 Amendment to the MDA with the Liberian Government. On

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January 23, 2013, the parties signed the Second Amendment to constructed in modules, will transition AML to a premium
the MDA. product category (high grade concentrate) asset while achieving
a low FOB and CIF-China cost position (with the economies of
Under the MDA, AML is currently developing three deposits scale projected to more than offset the cost of concentration).
located approximately 300 kilometers northeast of Monrovia, The expansion project, which encompasses processing, rail and
Liberia. Three deposits within the MDA are grouped under the port facilities, will be one of the largest mining projects in West
name “Western Range Project”, which includes the Mt. Tokadeh, Africa. It is effectively a brownfield expansion, with 90% of the
Mt. Gangra and Mt Yuelliton deposits. The MDA, which is valid procurement already completed (with the equipment on site)
until 2030, grants a concession area to AML of approximately and the civil works are scheduled to be completed by the end of
51,342 hectares within which AML has the rights to explore or the first quarter of 2024, with structural, mechanical, piping and
mine iron ore. Within the concession area, AML has a Class A platework well progressed. First concentrate is expected at the
mining license for the Mt. Tokadeh, Mt. Gangra and Mt Yuelliton end of the fourth quarter of 2024. The revised feasibility study
deposits and a Mineral Exploration License for Mt. Blei and Mt also contemplates a future change to the processing
Detton. In addition to the rights to explore and mine iron ore, the infrastructure to enable the production of high-quality
Liberian Government has granted the right to develop, use, concentrate from the magnetite dominant fresh ores (Phase 3).
operate and maintain the Buchanan to Yekepa railroad and the See also "—Capital expenditures".
Buchanan port, along with an area at Buchanan for township
and industrial facilities for material handling and workshops.
JOINT VENTURES AND ASSOCIATES
The Nimba range consists of itabirites in a 250 to 450-meter- AMNS India is a joint venture in which ArcelorMittal and NSC
thick recrystallized iron formation. Although the iron deposits at hold a 60% and 40% interest, respectively.
Mt. Tokadeh, Mt. Gangra and Mt Yuelliton fit the general
definition of itabirite as laminated metamorphosed oxide-facies
iron formation, they are of lower iron grade than the ore
previously mined at the Nimba deposit. Tropical weathering
effects have caused the decomposition of the rock forming
minerals resulting in enrichment in the iron content that is
sufficient to support a DSO operation and accordingly, currently,
only high-grade ore reserves of oxidized iron ore are mined.
This ore only requires crushing and screening to make it
suitable for export. The materials-handling operation consists of
stockyards at both the mine and port areas, which are linked by
a 250-kilometer single track railway running from Mt. Tokadeh to
the port of Buchanan. The facilities at the port consist of tail
pulley platforms, a conveyor system, a quayside including bays
for iron ore storage, a fuel quayside jetty, an equipment
workshop and the final product storage. The final product is
primarily supplied to ArcelorMittal's steel plants in Europe, and
any product balance is shipped to the external European
market.

In 2013, AML began construction of a Phase 2 project that

targeted 15 million tonnes per annum of concentrate sinter fines.
This project was, however, suspended due to the onset of Ebola
in West Africa and the subsequent force majeure declaration by
the onsite contracting companies. AML completed a revised
feasibility study, which was updated in 2019-2020, to apply best
available technology and replace wet with dry stack tailings
treatment. The Phase 2 expansion includes the construction of a
concentrator plant with the ability to beneficiate oxidized and
transitional ores and that targets 15 million tonnes per annum of
premium iron ore product. An ongoing metallurgical program is LOCATION MAP - INDIA
in place to optimize the mass recovery of the oxide and
transitional material. The concentrator phase, which is to be
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2023 2022 2021

% of Product Product Product
Ownership ROM Millions Millions of ROM Millions Millions of ROM Millions Millions of
Interest of Tonnes Tonnes of Tonnes Tonnes of Tonnes Tonnes
AMNS India 60.0
At 100% basis 10.8 10.7 9.1 8.9 7.4 6.8
At ownership interest (60%) 6.5 6.4 5.4 5.3 4.5 4.1

Thakurani mine
AMNS India's Thakurani iron ore mine is a production stage material is then transported by slurry pipeline to the pelletizing
open pit mine in the Odisha state of India. AMNS India holds plant at Paradip, located on the coast of Bay of Bengal.
surface and mineral rights over 228 hectares to support its
Ghoraburhani – Sagasahi mine
Thakurani operations, located 320 kilometers to the north of the
The Ghoraburhani – Sagasahi mine is a production stage open
Odisha's capital Bhubaneswar and 4 kilometers east of the town
pit iron ore mine, located in the Sundargarh district of Odisha,
of Barbil.
state of India. The operation and mining rights to the
The operation and mining rights to the Thakurani operations Ghoraburhani – Sagasahi operations were obtained through the
were obtained by AMNS India in February 2020 through the AMNS India takeover of Essar Steel India Limited (ESIL) in
Indian Government Mining Block auction scheme. The December 2019. The mining lease deed was granted in 2021,
Thakurani open pit mine has been operated since 1961 and has for a period of 50 years and permits production of up to 7.16
both mature mining pits and undeveloped resource areas. million tonnes per annum of ore primarily for captive usage.
AMNS India commenced mining operations in mid-2020, AMNS India holds surface and mineral rights over 139 hectares
following the demobilization of the previous claim holder, at the Ghoraburhani – Sagasahi mine.
Kaypee Enterprises.
The Ghoraburhani – Sagasahi operations lie in the south-
AMNS India has a permit in place for 5.5 million tonnes per western part of the Singhbhum-Keonjhar-Bonai iron ore belt.
annum of ore production. The ramp-up to a capacity of 5 million The enriched sequence is a traditional Banded Iron Formation
tonnes per annum was completed in 2021. The mining lease that has been subject to significant weathering and deformation
deed was granted in 2020 for a period of 50 years. Until June that has enriched the iron ore deposits. Ore is generally of
2021, all production from the mine had to be consumed by lateritic iron ore/hard laminated ore on the top followed by soft
specified AMNS India end use plants, after which up to 25% of laminated ore and friable hematite with intercalations of friable
production may be sold to a third party. The permitted shaly ore and limonitic ore are also present.
production rate was increased to 7.99 million tonnes per year
Ore mining commenced at the Ghoraburhani – Sagasahi mine
from 2023 after a submission approved by the Indian Bureau of
in 2021 by conventional mining methods, using excavators and
Mines in late 2020.
trucks for ore transportation to a mobile screening & crushing
The Thakurani operations lie in the south eastern part of the facility, where ore is crushed and screened on site before being
Singhbhum-Keonjhar-Bonai iron ore belt, a narrow NNE-SSW transported by road to the Dabuna beneficiation plant located
directional trending folded syncline that runs through northern approximately 28 kilometers to the south east. Beneficiated
Odisha, India and southern Jharkhand, India. The Precambrian material is then transported by 253 kilometers slurry pipeline to
horseshoe shaped belt is a well-known iron ore province hosting the pelletizing plant at Paradip.
many iron ore deposits. The enriched sequence is a traditional
Banded Iron Formation that has been subject to significant
weathering that has enriched the iron ore deposits. Ore is
generally of the friable hematite type, however more competent
hematite ores and friable goethite ores are also present.

The current mining operation at Thakurani is being carried out

by conventional mining methods using excavators and trucks for
ore transportation to a mobile crushing facility. Ore from the
Thakurani operation is crushed and screened on site before
being transported by road to the Dabuna beneficiation plant
located approximately 40 kilometers to the south. Beneficiated

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Baffinland
ArcelorMittal has a non-controlling interest at the associate
Baffinland iron ore mine.

LOCATION MAP - BAFFINLAND

2023 2022 2021

% of Product ROM Product ROM Product
Ownership ROM Millions Millions of Millions of Millions of Millions of Millions of
Interest of Tonnes Tonnes Tonnes Tonnes Tonnes Tonnes
Baffinland 25.23
At 100% basis 6.2 5.6 7.2 5.9 6.3 5.5
At ownership interest (25.23%) 1.6 1.4 1.8 1.5 1.6 1.4

The Mary River mine is a production stage open pit high-grade

iron ore mine. The mine is operated by Baffinland Iron Mines In March 2011, ArcelorMittal acquired 70% of the Mary River
Corporation, a privately owned Canadian mining company. mine project, with Nunavut Iron Ore Inc. (“NIO”), an affiliate of
The Energy and Minerals Group (“EMG”), owning the remaining
The Mary River property is located within the Arctic Circle on 30%. In February 2013, ArcelorMittal and NIO entered into a
north Baffin Island, in the Qikiqtani Region of Nunavut, Canada, joint arrangement and equalized their shareholdings at 50/50.
approximately 1,000 kilometers (620 miles) northwest of Iqaluit, Subsequently, following equity funding commitments and
the capital of Nunavut. It comprises five high grade deposits and conversion of preferred shares into equity, both exercised by
six prospects, which represent high grade examples of Algoma- NIO only, ArcelorMittal’s share over time decreased to 25.70%
type iron formation consisting of magnetite, hematite and as of December 31, 2019 and 25.23% as of December 31,
specular hematite mineralization. The project began commercial 2020. In September 2020, the corporate structure was
production on Deposit No. 1 in 2014. reorganized whereby NIO became the sole parent company of
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 Management report

Baffinland, while ArcelorMittal together with EMG became permits) (the “Steensby Expansion”). Baffinland continues to
shareholders of NIO. Following this reorganization, ArcelorMittal advance the financing plans for the Steensby Expansion and
retained its participation in the project and as of December 31, expects the overall financing process to conclude in the second
2023, holds a 25.23% interest in NIO. half of 2024.

Baffinland’s total mineral tenures (including mining leases,

mineral claims and mineral exploration agreements) cover an
area of approximately 271,282 hectares (671,701 acres). Of
this, approximately 14% is subject to mining leases (being
leased claims under the Nunavut Mining Regulations), 79% is
covered by mineral claims (being recorded claims under the
Nunavut Mining Regulations) and the rest by mineral exploration
agreements.

Baffinland has two main operating locations – the mine site at

Mary River and Milne Port, located approximately 86 kilometers
north-west of the mine site. The Mary River mine is self-
sustaining and is equipped with an airstrip and aerodrome. It is
a conventional open pit truck and shovel operation. Ore is
delivered to crushers before the crushed product is transported
via the 100 kilometer Tote road to Milne Port. Milne Port has
been fully developed to accommodate a 5 million-tonne ore
stockpile, an ore dock, maintenance facility, and associated
infrastructure for the operation of the port facilities. Baffinland
can only ship during the open water season (typically July to
October), but may conduct haulage of ore to the port throughout
the year.

In 2023, Baffinland operated within an approved Early Revenue

Phase, which permitted up to 6.0 million tonnes per annum to be
hauled to and shipped from Milne Port. The current permitting
limit on trucking and shipping is 4.2 million tonnes per annum. In
September 2023, Baffinland obtained continued approval for an
increase to 6 million tonnes per annum for 2024.

Baffinland had approved a project involving the construction of a

railway to replace the existing truck-haul operation for the
transport of iron ore from Mary River to Milne Inlet, as well as
the expansion of mining, crushing and screening operations and
port ship loading capacity (the "Northern Rail Expansion"),

On May 13, 2022, the Nunavut Impact Review Board (“NIRB”)

formally recommended that Baffinland’s proposed Northern Rail
Expansion not move forward at this time, citing potential
environmental impact concerns on the local wildlife and culture,
among other things. On November 16, 2022, the Minister of
Northern Affairs accepted the NIRB's recommendation, and
rejected Northern Rail Expansion.

Beginning in 2023, Baffinland’s expansion activities and related

capital expenditures have been primarily directed toward
expanding the mining and processing operations at the Mary
River mine site and connecting the mine site south to the
Steensby port (for which it has already obtained the major

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 Management report

Coal Operations Lenina, Shakhtinskaya and Tentekskaya. Until the sale of

ArcelorMittal Temirtau had eight underground coal mines ArcelorMittal Temirtau on December 7, 2023, the mines were
located in and around Karaganda in Kazakhstan: Kostenko, 100% owned by ArcelorMittal and integrated into and operated
Kuzembaeva, Saranskaya, Abayskaya, Kazakhstanskaya, by ArcelorMittal Temirtau steel business as captive mines.

LOCATION MAP - ArcelorMittal Temirtau Coal

2023 2022 2021

% of Product Product Product

Ownership ROM Millions Millions of ROM Millions Millions of ROM Millions Millions of
Interest of Tonnes1 Tonnes1 of Tonnes Tonnes of Tonnes Tonnes

Karaganda - Kazakhstan 100.0 5.8 2.0 7.0 2.6 8.3 3.3

1. The total production related to ArcelorMittal Temirtau is included in the table through the transaction closing date on December 7, 2023.

Estimates of Iron Ore Mineral Reserves and Mineral Resources

For the meanings of certain technical terms used in this annual disclosure requirements in accordance with S-K 1300. Qualified
report, see “Glossary - definitions, terminology and principal persons are either employees of ArcelorMittal, or they are third
subsidiaries”. parties or employees of a third party who are not affiliates of
ArcelorMittal and neither such third parties or their employers
The mineral reserve and resource estimates have been has an ownership, royalty or other interest in the property for
prepared in accordance with S-K 1300 and Society for Mining, which they have estimated mineral reserves or mineral
Metallurgy & Exploration (SME) Guide for Reporting Exploration resources. No qualified persons have been employed on a
Information, Mineral Resources, and Mineral Reserves (The contingent basis.
"SME Guide").
Only measured and indicated mineral resources, where the level
The estimates of mineral resources and mineral reserves at the of geological certainty associated was sufficient to allow a
Company’s mines and projects and the estimates of the mine qualified person to apply modifying factors in sufficient detail to
life included in this report have been prepared by qualified support mine planning and evaluation of the economic viability
persons, in accordance with the guidelines for mining property of the deposit, were converted to proven or probable mineral

123
 Management report

reserves for each of the mineral properties under the summary resources and the point of delivery of the ROM material to the
disclosure. processing plant for reserves. All material is reported on a wet
basis and grades on a dry basis. The effective date for reporting
The 2023 mineral resource and mineral reserve estimates at the of all mineral resources and reserves is December 31, 2023.
AMMC mining property have been prepared by qualified
persons who are employees of ArcelorMittal. For each of the mining operations under the summary
disclosure, economic viability of the declared mineral reserves
The 2023 mineral resource and reserve estimates for the Las has been determined by the qualified persons using a
Truchas and San José mines (consolidated as Mexico, discounted cash flow analysis, demonstrating that extraction of
excluding Peña Colorada in the tables below) were prepared by the mineral reserve is economically viable under reasonable
qualified persons of SLR Consulting (Canada) Ltd. Peña investment and market assumptions. The estimated mine life
Colorada also contracted SLR Consulting (Canada) Ltd. to reported in this table corresponds to the duration of the
provide the 2023 mineral resource and reserve estimates for the production schedule of each operation based on the 2023 year-
Peña Colorada mine, with the support of the Peña Colorada end iron ore reserve estimates only. The production varies for
team. each operation during the mine life and as a result the mine life
is not the total reserve tonnage divided by the 2023 production.
The 2023 mineral resource and reserve estimates for the
Mine life of each operation is derived from the life of mine plans
Andrade and Serra Azul mines (consolidated as Brazil in the
and corresponds to the duration of the mine production
tables below) were prepared by qualified persons of the GE21
scheduled from mineral reserve estimates only. The
Consultoria Mineral, with the support of the ArcelorMittal Brazil
demonstration of economic viability is established through the
local team.
application of a life of mine plan for each operation or project
The mineral resource and reserve estimates for the AMKR providing a positive net present value on a cash-forward looking
(Ukraine) open pit and underground operations as of December basis, considering the entire value chain. Economic viability is
31, 2023 were prepared by LLC "KAI". demonstrated using forecasts of operating and capital costs
based on historical performance, with forward adjustments
For 2023, mineral resource and reserve estimates for the based on planned process improvements, changes in
Thakurani and Ghoraburhani – Sagasahi mines (India in the production volumes and in fixed and variable proportions of
tables below) were prepared by a qualified person of BMRC costs, and forecasted fluctuations in costs of raw material,
Geomining Solutions LLP. supplies, energy and wages. Mineral reserve estimates are
updated annually in order to reflect new geological information
AML's 2023 mineral resources and mineral reserves were
and current mine plan and business strategies. The Company’s
estimated by qualified persons who are employees of
reserve estimates are of in-place material after adjustments for
ArcelorMittal. In 2023, a qualified person of VBKOM (Pty) Ltd
mining depletion and mining losses and recoveries, with no
updated the mineral resources estimate for the Vanderbijl pit at
adjustments made for metal losses due to processing. For a
Thabazimbi (South Africa in tables below). Estimates of mineral
description of risks relating to reserves and reserve estimates,
reserves are not reported in 2023 for ArcelorMittal South Africa
see “Introduction—Risk factors—Risks related to ArcelorMittal’s
iron ore operation Thabazimbi. Mineral resources and mineral
mining activities".
reserves as of December 31, 2023 for ArcelorMittal Prijedor
(Bosnia in the tables below) were prepared by an independent The reported iron ore reserves contained in this report do not
qualified person. The mineral resources and reserves for the exceed the quantities that the Company estimates could be
Mary River Mine (Baffinland in the tables below) as of extracted economically if future prices were at similar levels to
December 31, 2023 were estimated by a qualified person of the average contracted price for the three years ended
SLR Consulting (Canada) Ltd, with the support of the Baffinland December 31, 2023. The Company establishes optimum design
team. and future operating cut-off grade based on its forecast of
commodity prices, adjusted for local market conditions, freight,
Following the sale of the ArcelorMittal Temirtau operations on
inland logistics costs, and final product value in use premiums/
December 7, 2023, mineral reserves and resources for iron ore
penalties, and operating and sustaining capital costs. The cut-off
surface mines (previously consolidated as Kazakhstan Open
grade varies from operation to operation and during the life of
Pit), underground iron ore mine (previously Kazakhstan
each operation in order to optimize cash flow, return on
Underground) and coal mines (previously Kazakhstan-
investments and the sustainability of the mining operations.
Karaganda) are no longer reported by ArcelorMittal.
Such sustainability in turn depends on expected future operating
The point of reference of reporting all of ArcelorMittal's mineral and capital costs. Estimates of reserves and resources can vary
resources and reserves in the tables below is in situ for from year to year due to the revision of mine plans in response

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 Management report

to market and operational conditions, in particular market price. ArcelorMittal owns less than 100% of certain mining operations;
See “Introduction—Risk factors—Risks related to ArcelorMittal’s mineral reserve and mineral resource estimates have been
mining activities—ArcelorMittal’s reserve and resource adjusted to reflect ownership interests and therefore reflect the
estimates may materially differ from mineral quantities that it portion of total estimated mineral reserves and resources of
may be able to actually recover; ArcelorMittal’s estimates of each mine attributable to ArcelorMittal as per the Company’s
mine life may prove inaccurate; and market price fluctuations ownership interest in each mine at December 31, 2023.
and changes in operating and capital costs may render certain
ore reserves uneconomical to mine.” The classification of the iron ore reserve estimates as proven or
probable reflects the variability in the mineralization at the
To ensure that mineral resource estimates for all mines satisfy selected cut-off grade, the mining selectivity and the production
the requirements for reasonable prospects for economic rate and ability of the operation to blend the different ore types
extraction ("RPEE") requirement, reasonable technical and that may occur within each deposit.
economic factors were considered by qualified persons in the
process of derivation of the ultimate mineral resource pit shells The following table summarizes ArcelorMittal’s mineral reserves
or underground constraining wireframes and other spatial as of the end of the fiscal year ended December 31, 2023 in the
controls used to constrain the mineralization. Factors used are aggregate, and by commodity and country and for each property
current, considered to be reasonably developed, and are based containing 10% of more of ArcelorMittal’s combined mineral
on generally accepted industry practice and experience. reserves. Mineral reserve quantities are rounded to million
tonnes. Unless indicated otherwise below, for the purpose of
Tonnage and grade estimates are reported as ‘Run of Mine’. determining iron ore mineral reserves, ArcelorMittal has used a
Tonnage is reported on a wet metric basis. Metallurgical long-term iron ore reference price of $70 per tonne for 62% Fe
recoveries are accounted for in the concentrate tonnes fines, based on supply/demand fundamentals and industry cost
calculation based on historical processing data and are variable curve adjusted upwards or downwards for mine specific factors
as a function of head grade. and further adjusted for grade, logistics, and other adjustments.

Proven Probable Total

Mineral Reserves Mineral Reserves Mineral Reserves
% of
Ownership Millions of Millions of Millions of
Iron Ore Interest12 Tonnes % Fe 1 Tonnes % Fe 1 Tonnes % Fe 1

Canada 1,881 30.8 104 55.0 1,985 32.1

AMMC2 85.0 1,790 29.1 28 31.1 1,818 29.1

3
Baffinland 25.2 91 64.4 76 63.8 167 64.1

Mexico 46 22.3 176 25.7 222 25.0

Mexico (Excluding
Peña Colorada)4 100.0 — 39.3 107 29.1 107 29.2
Peña Colorada -
Mexico5 50.0 46 22.2 69 20.4 115 21.1
6
Brazil 100.0 176 46.6 251 37.3 427 41.1

Bosnia7 51.0 4 46.3 2 33.6 6 42.1

Ukraine 70 35.3 444 34.3 514 34.4

8
Ukraine Open Pit 95.1 65 33.9 431 33.7 496 33.7
Ukraine
Underground9 95.1 5 54.6 13 54.6 18 54.6

South Africa 100.0 — — — — — —

10
Liberia 85.0 39 46.8 660 42.7 699 42.9
11
India 60.0 6 62.5 78 62.2 84 57.5

Total Iron Ore 2,222 32.4 1,715 39.6 3,937 35.4

1. Unless stated otherwise, % Fe represents total Fe content for all sites except Peña Colorada where it represents magnetic Fe content only.

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 Management report

2. Mineral reserves for AMMC are estimated at a cut-off grade of 15% and a mass recovery of 33.0%, for a life of mine of 28 years.
3. Mineral reserves for Baffinland are estimated based on a long-term iron ore price of $102.8 per tonne for 62% Fe fines CFR North China, at a cut-off grade of 55% and a
mass recovery of 100%, for a life of mine of 24 years.
4. Mineral reserves for Las Truchas are estimated at a cut-off grade of 10% Fe magnetic, and reserves for San José are reported at a cut-off grade of 25% Fe. The Fe
recovery of Fe magnetic is 90% is considered in Las Truchas, and at San José Fe recovery considered is 75%. Life of mine of Las Truchas is 15 years and San José has
a life of mine of 1 year.
5. Mineral reserves for Peña Colorada are estimated at the cut-off grade of 15% Fe magnetic. Fe recovery at the mineral reserve average head grade is 89.3% of Fe
magnetic, for the life of mine of 16 years.
6. Mineral reserves for Serra Azul are estimated at 40% Fe cut-off grade and a mass recovery of 52.8% for friable material, and 29% Fe cut-off grade and a mass recovery
varying from 33% to 45% for compact material, for a life of mine of 34 years. Mineral reserves for Andrade are reported at a cut-off grade of 20% Fe and 81.3% mass
recovery at average, for a life of mine of 31 years.
7. Mineral reserve for ArcelorMittal Prijedor is estimated based on a price of $39.9 per tonne of product calculated based on assumptions of a non-marketable material
supplied to its integrated steel plant, at 32% Fe cut-off grade and mass recovery of 75%, for the life of mine of 6 years.
8. Mineral reserve for Ukraine Open Pit is estimated at an average mass recovery of 65.3%. Cut-off grade applied at Novokryvorizke deposit is 12% Fe, and at Valyavkinske
deposit 16% Fe. Life of mine considered for the two pits combined is 22 years.
9. Mineral reserve for Ukraine Underground mine is estimated based on a price of $39.3 per tonne of product calculated based on assumptions of a non-marketable material
supplied to its integrated steel plant, at cut-off grade of 48% Fe and a mass recovery of 100%, for a life of mine of 22 years.
10. Mineral reserve for Liberia are estimated at a cut-off grade of 38% Fe for Mt. Tokadeh, and at a cut-off grade of 40% Fe for Mt. Gangra and Mt. Yuelliton, with a mass
recovery of 49.7% for the oxide and transitional material, and at a 30% Fe cut-off grade and a mass recovery of 43.2% for all fresh material, for a life of mine of 30 years.
11. Mineral reserves for Thakurani and Ghoraburhani – Sagasahi are estimated using a long-term iron ore price of $42 per tonne based on IBM (Indian Bureau of Mines)
three years average, Mineral reserves for Thakuranii are estimated at 55% Fe cut-off grade and a mass recovery of 98%, for the life of mine of 11 years. Mineral reserves
for Ghoraburhani – Sagasahi are estimated at 55% Fe cut-off grade and a mass recovery of 88.49%, for the life of mine of 13 years.
12. As per S-K 1300, reported mineral reserves as of December 31, 2023 reflect ArcelorMittal's ownership interest at each individual business unit.

The following table summarizes ArcelorMittal’s mineral mineral reserves, on a wet basis. Mineral resource quantities
resources as of the end of the fiscal year ended December 31, are rounded to million tonnes. Iron ore mineral resources are
2023 in the aggregate, and by commodity and country and for estimated based on the same long-term price forecast used for
each property containing 10% or more of ArcelorMittal’s reserves, adjusted based on the applicable revenue factor and
combined measured and indicated mineral resources. Mineral adjusted upwards or downwards for mine specific factors and
resource quantities are rounded to million tonnes. The reported further adjusted for grade, logistics and other modifying factors.
mineral resources reflect ArcelorMittal's ownership interest at
each individual business unit and are reported, exclusive of

Measured &
Measured Mineral Indicated Indicated Mineral Inferred Mineral
Resources Mineral Resources Resources Resources
% of
Ownership Millions of Millions of Millions of Millions of
Iron Ore Interest13 Tonnes % Fe 1 Tonnes % Fe1 Tonnes % Fe1 Tonnes % Fe1
Canada 1,524 28.2 1,569 29.1 3,093 28.7 1,617 29.7
2
AMMC 85.0 1,524 28.2 1,566 29.1 3,090 28.6 1,534 27.8
3
Baffinland 25.2 — 62.0 3 63.0 3 62.9 83 64.3
Mexico 17 25.5 86 30.4 103 29.6 20 32.1
4
Mexico (Excluding Peña Colorada) 100 — — 64 33.2 64 33.2 20 32.1
Peña Colorada - Mexico5 50.0 17 25.5 22 22.2 39 23.6 — 21.0
6
Brazil 100 89 51.0 187 48.0 276 49.0 105 40.4
Bosnia7 51.0 — 29.7 3 28.5 3 28.6 2 32.4
Ukraine 80 33.4 405 34.5 485 34.3 42 52.9
8
Ukraine Open Pit 95.1 77 32.5 387 33.5 464 33.3 6 36.7
Ukraine Underground9 95.1 3 56.0 18 55.6 21 55.6 36 55.6
10
South Africa 100 — — 38 54.4 38 54.4 43 54.9
Liberia11 85.0 — — 1,116 29.3 1,116 29.3 767 38.2
12
India 60.0 1 50.3 57 59.8 58 59.0 56 61.3
Total Iron Ore 1,711 29.6 3,461 31.6 5,172 31.0 2,652 34.0

1. Unless stated otherwise, % Fe represents total Fe content for all sites except Peña Colorada where it represents magnetic Fe content only.
2. Mineral resources for AMMC are estimated at a cut-off grade applied for all deposits is 15% Fe with a mass recovery of 32.5.%
3. Mineral resources for Baffinland are estimated at the cut-off grade of 55% and a mass recovery of 100%.

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4. Mineral resources for Last Truchas are estimated at a cutoff grade of 10% Fe magnetic and Fe recovery of 90%, and mineral resources for San José are reported at a
cutoff grade of 25% Fe and Fe recovery of 75%.
5. Mineral resources for Peña Colorada are estimated at the cut-off grade of 10% Fe magnetic. Fe recovery at the mineral resource average head grade is 90.7%.
6. Mineral resources for Serra Azul are estimated at 40% Fe cut-off grade and a mass recovery of 52.8% for friable material, and 29% Fe cut-off grade and a mass recovery
varying from 33% to 45% for compact material. Mineral resources for Andrade are reported at a cutoff grade of 20% Fe and variable a mass recovery of 70.6% at
average.
7. Mineral resources for ArcelorMittal Prijedor are estimated based on assumptions of a non-marketable material supplied to its integrated steel plant, at 30% Fe cut-off
grade and mass recovery of 75%.
8. Mineral resources for Ukraine Open Pit are estimated at a cut-off grade applied at Novokryvorizke deposit is 12% Fe, and at Valyavkinske deposit 16% Fe, at an average
mass recovery of 65.3%.
9. Mineral resources for Ukraine Underground mine are estimated based on assumptions of a non-marketable material supplied to its integrated steel plant, at a cut-off
grade of 48% Fe and a mass recovery of 100%.
10. Mineral resources for Thabazimbi are estimated at a 40% Fe cut-off grade and metallurgical recovery of 60%.
11. Mineral resources for Liberia are estimated at a cut-off grade of 38% Fe for Mt. Tokadeh, and at a cut-off grade of 40% Fe for Mt. Gangra and Mt. Yuelliton, with a mass
recovery of 49.7% for the oxide and transitional material, and at a 30% Fe cut-off grade and mass recovery of 43.2% for all fresh material.
12. Mineral resources for Thakurani are estimated at a 45% Fe cut-off grade and a mass recovery of 98%, and for Ghoraburhani – Sagasahi mine are estimated at a 45% Fe
cut-off grade and a mass recovery of 85%.
13. As per S-K 1300, reported mineral resources as of December 31, 2023 reflect ArcelorMittal's ownership interest at each individual business unit.

Cautionary note concerning mineral reserve and mineral

resource estimates: With regards to ArcelorMittal’s reported following the platform configuration for the ArcelorMittal global
resources, investors are cautioned not to assume that any or all mining portfolio.
of ArcelorMittal’s mineral deposits that constitute either
Databases are compiled and managed by experienced
‘measured mineral resources’, ‘indicated mineral resources’ or
personnel engaged directly by the operating entities and
‘inferred mineral resources’ (estimated in accordance with S-K
business units, following documented procedures. Sample data
1300 and the SME Guide) will ever be converted into mineral
derived from activities such as, but not limited to, exploration
reserves. There is a reasonable level of uncertainty as to the
drilling and field sampling, is subject to thorough sample security
existence of ‘inferred mineral resources’ and their economic and
and integrity protocols, field and laboratory quality assurance
legal feasibility, and it should not be assumed that any or all of
and quality control processes, and data validation procedures.
an ‘inferred mineral resource’ will be upgraded to a higher
category. Field quality control processes and procedures will vary based
on the specific nature of the drilling or sampling program, but will
Internal Controls
nominally include the use of duplicate samples, blank control
ArcelorMittal mining and exploration properties employ robust
samples and certified reference materials. Samples processed
quality control and quality assurance processes and procedures
and analyzed at internal and external laboratories are subject to
to ensure the validity and integrity of data utilized in the
additional laboratory quality control processes including, but not
estimation of mineral resources and mineral reserves.
limited to, duplicate samples and certified reference materials.
ArcelorMittal has developed an Orebody Knowledge and Data verification workflows are employed for each program to
Management Framework, comprising a comprehensive set of ensure the quality and integrity of all data incorporated into the
internal guidelines and management standards that govern the databases.
resource and mining activities conducted at its properties. The
Historical data is subject to rigorous verification processes prior
framework and its associated documents describe the systems
to inclusion in resource estimation databases. These
and processes to be developed and implemented at
procedures can include, but are not limited to, external database
ArcelorMittal properties to effectively manage activities and data
validation by independent parties, internal database audits, and
for the estimation and mining of its mineral resources and
spatial and statistical analyses. Where historical data cannot be
reserves. This framework and its associated documents are
verified to the satisfaction of the relevant qualified person, it is
compiled and managed by a centralized corporate team of
excluded from the databases used in the estimation processes.
experienced and qualified technical experts and are reviewed
and updated on a regular basis. Where applicable, all mineral resource and mineral reserve
estimates are reconciled against mine production data and
To increase rigor over internal controls and ensure integrity of its
operational results. Geological interpretations and estimation
reported mineral resource and mineral reserve disclosures, in
parameters are updated, and modifying factors, cost and price
2023, ArcelorMittal implemented K2fly’s Mineral Resource
assumptions validated and adjusted.
Governance and Model Manager platforms globally. This will
enable enhanced control over the consolidation of the There are inherent risks associated with all mineral resource
Company’s mineral resource and reserves disclosures. The and mineral reserve estimations see "Introduction—Risk Factors
K2fly solutions are deployed in a Dry Run in 2023 reporting, —Risks associated with ArcelorMittal's Mining Activities".
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OPERATING AND FINANCIAL REVIEW (supported by continued growth in consumer expenditure), the
impact of tighter credit conditions and elevated interest rates
Key factors affecting results of operations negatively impacted output of interest rate sensitive sectors
(e.g., machinery and residential construction). The European
Overview
market heavily impacts the Company's prospects and while in
The steel industry, and the iron ore and coal mining industries,
Europe output held up better than expected over the winter
which provide its principal raw materials, have historically been
months of 2022-2023 as the risk of energy rationing subsided,
highly cyclical. They are significantly affected by general
economic growth stagnated during the first half of 2023.
economic conditions, consumption trends as well as by
However, sentiment weakened through the second half of the
worldwide production capacity and fluctuations in international
year after the European Central Bank increased policy rates to
steel trade and tariffs. This is due to the cyclical nature of the
over 4%, to combat elevated inflation. This has negatively
automotive, construction, machinery and equipment and
affected the manufacturing and construction sectors that drive
transportation industries that are the principal consumers of
steel demand, with new orders and backlogs weakening and
steel. In recent years, the COVID-19 pandemic caused a
real steel demand declining during the second half of 2023.
sudden and sharp decline in economic activity and steel
However, automotive demand has held up better, as weakening
consumption on a global scale during 2020 in the Company's
underlying demand was offset by a rebound in supply following
core developed markets, followed in 2021 by a significant
shortages through 2021 and 2022, leading to rising output
recovery in most industries, constrained to some extent by
during 2023. While steel demand in both the U.S. and Europe
supply chain issues. In 2022, the global economy was adversely
continues to be well below pre-pandemic levels, steel
affected by supply chain issues, high inflation, consequential
consumption is expected to be supported over the next few
tightening of monetary policy and Russia’s invasion of Ukraine
years by the American Jobs Plan (“AJP”) and the Inflation
(itself aggravating inflationary pressures, particularly in the
Reduction Act (“IRA”) in the U.S. and by the Next Generation
energy sector). All these shocks weighed on growth in
EU (“NGEU”) stimuli plans in the EU.
ArcelorMittal’s core developed markets (EU, U.S.), with a
negative impact on steel demand and pricing. Despite the Company’s sales and profitability being significantly
affected in developing markets in 2020, demand in some
During the first half of 2023, resilient demand and less
markets, such as Brazil and Turkey, rebounded strongly during
destocking in the Company's core markets led to both apparent
the first half of 2021, to well above pre-pandemic levels, before
demand and steel prices increasing from the low levels seen
reverting back to trend during the second half of 2021. As a
during the second half of 2022. However, the lagged impact of
result of the above trend economic and steel demand growth in
monetary tightening and declining real steel demand, weighed
2021, many economies suffered from high inflation, which
on prices in most markets from May until October 2023,
began to impact consumer spending in 2022. In Brazil, interest
negatively impacting ArcelorMittal’s profitability.
rates were raised sharply throughout 2022 to a peak of 13.75%,
In the first half of 2021, steel demand rebounded from the sharp to combat high inflation, and steel demand declined over 10%
reductions seen in the first part of 2020 as developed year-on-year in 2022 as real demand weakened and as steel
economies reopened, but despite continued strong consumer users reduced excessive inventory levels. While many emerging
demand for goods and robust order levels at manufacturers, markets are better placed to deal with crises than in the past,
output (especially automotive) was constrained by supply economic risks remained high in 2023 for many countries
bottlenecks in the second half of 2021. The inability of steel end- including sovereign debt sustainability in Brazil and external
users to raise output due to supply chain issues led to weaker foreign currency debt risk in Turkey. This is especially true
than expected real steel demand in the Company’s core against a backdrop of tightening external financing conditions,
markets and to steel inventory increasing through the supply concerns about global growth and weaker investor sentiment. In
chain. This high level of inventory began to weigh on pricing Brazil, the new 2024 fiscal framework is more relaxed with
during 2022, despite the temporary support from supply respect to public spending than the previous framework, adding
disruption due to the war in Ukraine. This was particularly true in to downside risks of a public debt crisis in the medium-term.
the EU where the increase in energy costs, exacerbated by the However, while the Company expects the country to experience
fear of the need for gas rationing, negatively impacted real a technical recession in early 2024, due to the lagged impact of
demand as the European economy slowed considerably in the elevated interest rates, growth is expected to pick-up in late
second half of 2022. While the economy and underlying real 2024, following the expected normalization of inflation and real
demand were stronger in the U.S. during the first half of 2022, wage growth through 2024. In Turkey, the lira has depreciated
the Federal Reserve raised interest rates aggressively to slow significantly against the U.S. dollar, causing inflationary pressure
growth and dampen heightened inflationary pressure. Although to re-accelerate during the second half of 2023 and forcing the
economic growth was stronger than expected during 2023
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central bank to increase interest rates to over 40%, causing a and steel industry—Excess capacity and oversupply in the steel
downturn in the economy into 2024. industry and in the iron ore mining industry have in the past and
may continue in the future to weigh on the profitability of steel
Historically, demand dynamics in China have also substantially producers, including ArcelorMittal".
affected the global steel business, mainly due to significant
changes in net steel exports. Steel demand in China weakened Unlike many commodities, steel is not completely fungible due
sharply in 2021 after policy support had inflated demand in to wide differences in its shape, chemical composition, quality,
2020, declining year-on-year in the second half of the 2021. specifications and application, all of which affect sales prices.
While the combination of high vaccination and booster rates and Accordingly, there is still limited exchange trading and uniform
lower severity of COVID-19 variants led to an ending of pricing of steel, whereas there is increased trading of steel raw
restrictions in most countries during 2022, China was a major materials, particularly iron ore. Commodity spot prices can vary,
exception. Lower vaccination rates, especially among the which causes sales prices from exports to fluctuate as a function
elderly, a less developed health service and strict adherence to of the worldwide balance of supply and demand at the time
a dynamic zero-COVID policy resulted in significant lockdowns sales are made.
in many cities, with Shanghai suffering a two-month citywide
lockdown in April and May 2022. This not only impacted internal ArcelorMittal’s sales are made based on shorter-term purchase
supply chains but also exacerbated the downturn in the real orders as well as some longer-term contracts to certain
estate market, with housing sales and new housing starts both industrial customers, particularly in the automotive industry.
declining sharply. This sharp reduction in underlying real Steel price surcharges are often implemented on steel sold
demand, coupled by a smaller reduction in steel production, led pursuant to long-term contracts to recover increases in input
to a push for more exports before a weakening of global steel costs. However, longer term contracts with low steel prices will
demand led to net Chinese steel exports falling back during the not reflect increases in spot steel prices that occur after contract
second half of 2022. An earlier-than-expected re-opening saw negotiation. Spot market steel, iron ore and coal prices and
economic growth accelerate to 4.5% year-on-year in the first short-term contracts are more driven by market conditions.
quarter of 2023, driven by transport, retail and hospitality
One of the principal factors affecting the Company’s operating
industries. Steel demand was also supported by strong growth
profitability is the relationship between raw material prices and
in infrastructure, due to the front-loading of special government
steel selling prices. Profitability depends in part on the extent to
bonds issued to local governments. However, the reopening
which steel selling prices exceed raw material prices, and
rebound stalled during the second quarter of 2023 as private
specifically the extent to which changes in raw material prices
firms have little appetite for expansion, leaving investment
are passed through to customers in steel selling prices.
spending increasingly dependent on the state and underscoring
Complicating factors include the extent of the time lag between
the need for further policy support. Housing sales, which
(a) the raw material price change and the steel selling price
temporarily rebounded after re-opening, resumed their decline
change and (b) the date of the raw material purchase and of the
through the remainder of 2023, due to low confidence on the
actual sale of the steel product in which the raw material was
part of households. Private firms are especially cautious of
used (average cost basis). In recent periods, steel selling prices
many real estate developers, who are highly leveraged and
have not always been correlated with changes in raw material
have concentrated on completing stalled projects, with new
prices, although steel selling prices may also be impacted
starts continuing to fall through 2023 and little likelihood of a
quickly due in part to the tendency of distributors to increase
recovery of developer new starts during 2024. The renewed
purchases of steel products early in a rising cycle of raw
weakness of Chinese steel demand, coupled with ample
material prices and to hold back from purchasing as raw
domestic supply has seen net Chinese finished flat steel exports
material prices decline. With respect to (b), as average cost
increase from 3.4 million tonnes per month during 2022, to 3.8
basis is used to determine the cost of the raw materials
million per month during January and February 2023 to 5.4
incorporated, inventories must first be worked through before a
million tonnes during March to December 2023. Moreover, the
decrease in raw material prices translates into decreased
Company continues to expect Chinese steel demand to decline
operating costs. In some of ArcelorMittal’s segments, in
in the medium-term, as infrastructure spending has been front-
particular Europe and NAFTA, there are several months
loaded and real estate demand is expected to weaken
between raw material purchases and sales of steel products
structurally due to lower levels of rural-urban migration. If the
incorporating those materials. Although this lag has been
expected decline in demand does not coincide with renewed
reduced in recent years by changes to the timing of pricing
capacity closures, this could lead to further increases in steel
adjustments in iron ore contracts, it cannot be eliminated and
exports from China and have a negative impact on global steel
exposes these segments’ margins to changes in steel selling
prices and spreads. See “Introduction—Risk Factors and
prices in the interim (known as a “price-cost squeeze”). This lag
Control—Risks related to the global economy and the mining
can result in inventory write-downs, as occurred in 2015, 2019
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and the third quarter of 2022 due to sharp declines in steel Chinese crude steel production declined. Iron ore prices then
prices. In addition, decreases in steel prices may outstrip rebounded during early 2022 on supply disruption, with prices
decreases in raw material costs in absolute terms, as has rising to over $150/t in March/April before falling back to an
occurred numerous times over the past few years, for example average of $101/t in the second half of 2022 and a low of $81/t
throughout 2019 as well as the fourth quarters of 2015, 2016 as Chinese production was cut in response to low domestic real
and 2018. In the fourth quarter of 2020 and through the first half demand and rising inventory levels. Although iron ore prices
of 2021, global steel prices surged toward historical highs in rebounded to $125/t average in the first quarter of 2023, they fell
many markets, due in part to increased demand and a slower back during the second and third quarters to an average of
increase in supply, resulting in increased steel spreads and $113/t. Iron ore prices have since rebounded to average $137/t
higher profitability. During the second half of 2021, despite in December 2023 supported by rising sentiment due to
strong underlying demand, a lack of inputs (e.g. semi- increased stimulus in China. However, the Company believes
conductors) caused real steel demand to stagnate while steel current prices are unsustainable over the medium term, if as
supply continued to increase. This led steel prices to decline, expected, Chinese steel demand weakens, this would lead to
faster than any decline in raw material costs leading to spread further falls in iron ore prices and would negatively impact
compression. During the first half of 2022, this was partially ArcelorMittal’s revenues and profitability. See “Introduction—
offset by an increase in the average price of annual automotive Risk factors and control—Risks related to the global economy
contracts and temporary steel price support due to disruption to and the mining and steel industry—Prolonged low steel and (to
supply from the war in Ukraine. Subsequently, steel spreads, a lesser extent) iron ore prices and/or low steel demand would
especially in Europe, were compressed by elevated energy have an adverse effect on ArcelorMittal’s results of operations.”
prices, particularly gas, and destocking at stockers and end-
users through the second half of 2022, adversely impacting the Economic environment
Company's deliveries and profitability. Steel prices declined Following a strong rebound in economic activity in 2021 globally
faster than raw material prices in both the third and fourth as most major economies removed COVID-19 pandemic
quarters of 2022, with significant compression of spreads. restrictions, the global economy experienced persistent and
However, the fourth quarter of 2022 was the peak of the broad-base inflationary pressures, particularly in developed
destocking cycle and inventory levels across ArcelorMittal’s economies, exacerbated by sharp spikes in energy prices
main markets fell to low levels. As destocking began to end caused by the Russian invasion of Ukraine. High inflation, and
during the first quarter of 2023, apparent demand improved from subsequent rapid and synchronized increases in interest rates,
the lows of the fourth quarter of 2022 and led to a recovery in caused global GDP growth to slow to 3% in 2022 from 6% in
steel prices and spreads. However, with economic growth 2021. In 2023, while energy prices declined and inflationary
weakening across the Company's core developed markets, due pressure started to dissipate, lagged impacts of high interest
to the lagged impact of interest rate rises, elevated steel prices rates and tighter financial conditions in developed economies
and spreads unwound during the second and third quarters of continued to constrain activity. By the end of 2023, interest rates
2023, negatively impacting the results of the third and fourth in major economies, such as in the U.S. and EU, have risen to
quarters of 2023, due to the significant lag between transactions the highest levels since the Global Financial Crisis of 2008.
and deliveries, especially for flat products. However, prices and Across much of the world ex-China, tighter financial conditions
spreads in the Company's core markets bottomed out in early have also weighed on interest-sensitive expenditures,
fourth quarter of 2023 and have since improved, especially in particularly in residential construction sector. However, total
the United States. household consumption has held up better-than-expected, as
spending has been supported by tight labor markets, with job
The Company’s operating profitability has been particularly growth remaining sufficiently strong to keep unemployment
sensitive to fluctuations in raw material prices. Volatility on steel rates near historic lows in many countries. In several
margins aside, the results of the Company’s Mining segment economies, most notably the U.S., household spending was
(which sells externally as well as internally) are directly impacted also sustained by the continued low level of household saving
by iron ore prices. Robust recovery of steel demand and rates, with excess savings from the 2019 of the pandemic being
production following the initial shocks of the COVID-19 consumed over 2021 and 2022. While high interest rates
pandemic continued in the first quarter of 2021 with iron ore negatively impacted ex-China, Chinese economic activity also
prices rising further to an average of $167/t. In the second slowed during the second half of 2023 as the reopening rebound
quarter of 2021, the seaborne iron ore price jumped to over waned, while weakness in real estate sector grew. As a result,
$200/t as rising steel production in China coincided with tight global GDP growth slowed to 2.3% in 2023.
supply, significantly increasing the profitability of ArcelorMittal’s
mining operations. Since mid-2021, iron ore prices have fallen In the U.S., GDP growth slowed sharply in 2022 to 2% after a
back to an average of $111/t in the fourth quarter of 2021 as strong rebound with growth of 6% in 2021, post COVID-19. This

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was due to the impact of high inflation, eroding real incomes and September 2023, from 2% at the beginning of the year. The
curtailing household consumption on business activities. In negative impact of high interest rates, coupled with persistent
2023, while headline inflation decreased to just over 3% by inflation, caused activity to slow further during the second half of
year-end (from a peak of 9.1% in June 2022), inflationary 2023, with GDP declining quarter-on-quarter in the third quarter
pressures remained, as core inflation (excluding volatile items of 2023 and estimated to have declined further in the fourth
such as food and energy) was still 4.0% by year-end (from a quarter of 2023, which means that the economy suffered a
6.6% peak in September 2022). This is due to continued price technical recession. Industrial sectors have been in recession
pressure in the service sector as consumption patterns rotated for some time, with the Eurozone manufacturing Purchasing
away from goods, with core services inflation of 5.5% overall in Managers' Index ("PMI") being below 50 since July 2022 and at
2023 (from above 7% in first quarter of 2023) while core goods 44.4 in December 2023, close to the lowest levels (ex-
inflation fell to 0% (from a peak of more than 10% in early 2022). COVID-19 pandemic April to May 2020) since 2009. The
Persistent inflationary pressures led to continued tightening of services PMI also fell below 50 over the fourth quarter of 2023,
monetary policy, with the Federal Reserve raising interest rates pushing the economy into recession. Overall, EU27 GDP
to peak levels in the 5.25% to 5.5% range, from 0 to 0.25% at stagnated through 2023, with year-on-year growth averaging
the beginning of 2022. Housing investment declined further, in only 0.4%, with Germany being one of the worst performers,
2023, partly reflecting the further tightening in financial with GDP declining year-on-year in 2023 (-0.3%).
conditions due to the lagged impact of recent interest rate hikes.
While labor markets remained tight during the first half of the While the Chinese economy fared relatively well in both 2020
2023, with continued robust aggregate employment gains, this and 2021, activity deteriorated markedly in 2022 due to
was less apparent in interest-rate sensitive sectors such as COVID-19 related restrictions, which weakened confidence and
construction and manufacturing. However, despite the impact of exacerbated the ongoing stress in the real estate sector, leading
high interest rates and persistent inflation, the economy was to lower consumption, production, and residential investment. In
more resilient, mainly due to household spending, which was 2023, economic activity rebounded during the first half of the
supported by a rundown of excess savings made during year, as the lifting of COVID-19 restrictions led to a strong
COVID-19. This offset the decline in real disposable income, recovery in the service sector, offsetting continued weakness in
resulting in GDP growth at approximately 2.4% in 2023. the real estate sector. In the second half of 2023, the growth
momentum started to fade, as the post-restriction rebound
After a strong rebound in 2021 post COVID-19, particularly in started to wane, while weakness in the real estate sector
service sectors, European economic growth slowed significantly persisted. Property developers faced severe funding constraints
in late 2022 due to a sharp spike in energy prices, especially due to the downturn in the sector, with both sales and new starts
natural gas, following the Russian invasion of Ukraine. Indeed, declining to a low level and house prices continuing to decrease.
GDP growth in EU27 countries (Europe excluding UK) slowed to Despite a government push to force property developers to
1.7% in the fourth quarter of 2022, after growing 6% year-on- complete presold homes, home buyer confidence remained low,
year in 2021. In 2023, though energy costs remained higher deepening the downturn. By the end of 2023, sales and new
than pre-invasion levels and continued to negatively impact starts were still significantly down year-on-year, compared to
energy-intensive industries (e.g. chemical sector), Europe already depressed 2022 levels. Along with post-restriction
avoided a more severe scenario of widespread curtailments rebound, another main offset also came from front-loading of
across industry which had been feared in the event of a lack of infrastructure spending in early 2023 supported by special
available gas. This was due to reduced demand for gas, as bonds backed by the central government, as local governments
consumption fell, due to mild weather conditions during the were financially strained by lower land sales. While property-
winter, coupled with significant substitution of gas by industrial support measures, such as the easing of home-buying
companies. At the same time, continued inflows of liquified restrictions and minimum down-payment requirements,
natural gas into Europe led to seasonally elevated levels of gradually improved sales, new starts are only expected to
inventory post-winter, which drove down gas prices. As a result, rebound with a 6 to 9 month lag, meaning any material recovery
Eurozone headline inflation moderated to 3% year-on-year by in real estate will more likely be in 2025. Therefore, the central
the end of 2023, from more than 10% at its peak in October government, announced further continued support for
2022. However, core inflation was more persistent, only infrastructure spending by issuing an additional 1 trillion RMB
declining to 3.4% at year-end after peaking at 5.5% on an bonds in December 2023, which will support activity in 2024. In
average in the first half of 2023. Labor markets remained tight, 2023, China's official GDP growth picked up slightly to an
with the eurozone unemployment rate at a historic low of 6.4% estimated 5.1% year-on-year, but mainly on a weak base of
in November 2023. As a result of persistent inflation and to 2022 (+3% year-on-year), due to the negative impact of
reduce tightness in labor markets, the European Central Bank COVID-19 restrictions and city-wide lockdowns.
("ECB") raised the main refinancing interest rate to 4% in

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In Brazil, economic activity rebounded strongly in the first half of the impact of high inflation and elevated interest rate levels. As
2023, driven by an exceptional agricultural harvests and resilient demand in the U.S. was more resilient than in the EU,
household consumption. Despite inflation remaining at elevated manufacturing output in the U.S. broadly stagnated (-0.5% year-
levels, the declining inflation trend throughout the year allowed on-year), while EU output declined more sharply (-2% year-on-
the central bank to ease monetary policy, reducing the policy year). In addition, while energy prices moderated, they still
rate from 13.75% in July to 12.25% by November 2023. remained at a level above pre-Russian invasion and as a result,
Meanwhile, growth was also driven by expansionary fiscal policy output in energy-intensive manufacturing sectors persisted at a
by an increase in social transfers. However, lagged impact of weaker level than total manufacturing through 2023.
high interest rates led to lower growth in the second half of
2023. GDP is estimated to have grown by 2.9% year-on-year. Global apparent steel consumption (“ASC”) increased by over
However, over the medium-term, downside risks remain 3% in 2021, as the global economy rebounded post-pandemic,
elevated due to the risk of high public debt as the new 2024 before declining by over 2% year-on-year in 2022, as stringent
fiscal framework is more relaxed with respect to public spending lockdowns in China caused ASC to decline by approximately 3%
than the previous framework. While the current tax reform year-on-year. ASC also declined in world ex-China by
proposal to simplify the tax system has long-term potential to approximately 2% despite resilient real demand for steel, as the
boost productivity and growth, the near-term benefit is unlikely. inventory cycle turned toward a sharp destock during the
In Turkey, despite earthquake-induced effects, economic activity second half of 2022. In China, following an earlier-than-
remained strong in the first half of 2023. High growth was driven expected reopening in late 2022, coupled with the government’s
by strong domestic demand supported by overly front-loading of infrastructure spending, ASC grew strongly in
accommodative monetary and fiscal policy to support early 2023, supported by stronger real demand. However,
reconstruction effort. However, activity started to moderate persistent weakness in the real estate sector saw real steel
during the second half of 2023, as inflation remained demand weaken through the year in China. As a result, ASC is
persistently high, rising above 60% by the end of 2023, driven estimated to have broadly stagnated in 2023. Meanwhile,
by higher input costs, strong demand, and the depreciation of despite slow recovery in real demand, a recovery in steel
the lira, which lost almost one-third of its value since the production due to the need to rebuild inventory supported
beginning of the year. As a result, since June 2023, the central growth in ex-China ASC, estimated to be approximately 2%
bank tightened its monetary policy to restore price stability. The year-on-year, with growth in developing ex-China offset by a
policy interest rate has been lifted from 8.5% in June to 40% in further decline in demand from developed markets. Within
November 2023 accompanied by strong signaling of further developed markets, ASC in the U.S. continued to decline year-
increases until inflation is under control. While GDP in 2023 on-year by over 2%, primarily driven by long product demand as
increased by 4% year-on-year, growth is expected to slow down the construction sector was mostly impacted by higher interest
going forward. rates, as well as pipe and tube demand, while flat steel product
demand grew marginally year-on-year in 2023. Elsewhere in
Prior to Russia’s invasion of Ukraine and China’s zero-COVID North America, demand fell in Canada while it rose strongly in
lockdowns, global manufacturing output was recovering as Mexico. In the EU, real demand followed similar trends as in the
supply constraints impacting 2021 output gradually eased. US but was even weaker. Overall ASC in Europe is estimated to
However, these shocks caused manufacturing output to fall in have declined by over 5% despite flat steel product demand
the second quarter of 2022, before recovering slightly in the being supported by less destocking, with long steel product
third quarter of 2022 and then weakening toward the end of the demand being especially weak, falling over 10% year-on-year in
year as economic growth in developed markets waned. Growth 2023. Meanwhile, steel demand in developing markets was
in global manufacturing output continued to weaken in 2023, to driven by robust growth in India, estimated at approximately
under 1.5% year-on-year from over 3% growth in 2022. In 11%. ASC also increased in ASEAN (4% year-on-year) and CIS
China, manufacturing output was more resilient, and increased (3% year-on-year). ASC also increased strongly in Turkey by
by over 4% year-on-year. The resilience of Chinese 18% year-on-year due to steel demand to rebuild infrastructure
manufacturing sectors was supported by improving, albeit from after the earthquake in early 2023. In Latin America, ASC
weak-levels, demand for Chinese goods from overseas, and broadly stagnated, as Brazilian demand grew around 1% offset
domestically, due to policy support for various high-tech by declining demand in Argentina, Colombia and Peru.
manufacturing sectors (e.g. electric vehicles). Outside China,
Source: GDP and industrial production data and estimates sourced from Oxford
manufacturing output decreased, mainly in developed markets
Economics January 24, 2024. ASC data for U.S. from American Iron and Steel
where output declined by approximately 2% year-on-year in Institute (AISI) to November 2023, estimates for December 2023. ASC data for
2023, offsetting 1.7% growth in developing markets ex-China. Brazil from Brazilian Steel Institute to November 2023, estimates for December
2023. ASC data for EU27 from Eurofer to October 2023, estimates for November
The weakness in manufacturing in developed markets is
and December 2023. ASC data for India from JPC to December 2023. All
primarily driven by lower consumer demand for goods, due to estimates are internal ArcelorMittal estimates.

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Steel production year-on-year in 2023, after 6% growth the year before. While
After world steel production stagnated in 2020 at 1.86 billion production in CIS remained below pre-war levels, data from the
tonnes as a result of demand disruptions caused by the global World Steel Association indicated that Russia steel production
COVID-19 pandemic, production increased to 1.93 billion had recovered significantly from the decline in 2022. Production
tonnes, as vaccination progress allowed economies to reopen in Ukraine, though weak, remained stable through 2023. In
and the global economy to recover. However, in 2022, world Turkey, despite strong domestic demand and resumption of
steel production declined by 5% in 2022, to 1.84 billion tonnes, steel mills after the earthquake in early 2023, production was
driven by lower production in world ex-China, where production down by approximately 4% year-on-year as a lot of exports from
fell by approximately 8%, whereas production only declined by Asia Pacific flowed to Turkey. Elsewhere, production is either
approximately 3% in China. The decline was mainly in stable or only down marginally from 2022 levels. Indeed, in
developed markets, where the production fell in the second half North America where production was marginally down by 1.4%
of 2022 because of high energy costs, as well as in CIS region year-on-year to 109 million tonnes (2022: 111 million tonnes),
due to Russian invasion of Ukraine. As a result, ex-China steel this was largely due to a 10% year-on-year decline in Mexico
inventory was low at the beginning of 2023, supporting while both U.S. and Canadian production were stable (at
production rebounding through the year, with average approximately 81 and 12 million tonnes, respectively). In
production at a level approximately 5% above the second half of Developed Asia, production also declined slightly by 1.8% year-
2022. Relative to production levels in 2022, ex-China steel on-year to 173 million tonnes (2022: 176 million tonnes), with
production in 2023 was broadly stable, with production declining Japan down to 87 million tonnes (2022: 89 million tonnes) while
in developed markets offset by a slight increase in production in South Korea output was stable at approximately 66 million
developing markets ex-China. In China, for 2022, steel demand tonnes. ASEAN (approximately -2% year-on-year) and Latin
was negatively impacted by lockdowns as the government America (approximately -5% year-on-year) continued to see
pursued a “dynamic-zero” COVID-19 policy to curb infections, production decline, after both declined in 2022, though partially
exacerbating the downturn in the real estate market, leading to offset by a 5% year-on-year increase in production in the Middle
steel production declining by 3% year-on-year. With an early East.
reopening in December 2022, steel production in China
Source: Steel production data are compiled using World Steel data for 61 countries
continued to increase as demand recovered, rising by
for which monthly data is available (which together account for 97% of World
approximately 4% year-on-year in 2023. While steel demand production). 61 Countries Include: Austria, Belgium, Finland, France, Germany,
from real estate sectors remained weak, this was offset by Greece, Italy, Luxembourg, Netherlands, Spain, Sweden, United Kingdom, Turkey,
Norway, Canada, Mexico, United States, Argentina, Brazil, Chile, Colombia,
higher infrastructure supported by front-loaded special
Ecuador, Peru, Venezuela, Egypt, South Africa, Libya, Kazakhstan, Russia,
government bonds, leading to stable domestic demand. Ukraine, Iran, Saudi Arabia, United Arab Emirates, Japan, South Korea, Taiwan,
Therefore, rising steel production led to a surge in Chinese net China, India, Pakistan, Thailand, Vietnam, Australia and New Zealand. Production
steel exports. Overall, world steel production in 2023 increased data is available for till December 2023, with some World Steel estimates for
missing data
marginally, up approximately 0.3% year-on-year. China’s share
of global steel production was stable at 54.8% (2022: 54.7%), Trade and import competition
followed by India who saw their share of global output Europe
increasing to 7.8% (2022: 6.8%). Other regions mostly saw their There has been a trend of imports growing more strongly than
share decline slightly, including East Asia (9.4% from 9.6% in domestic demand in the EU since 2012. ASC increased
2022), EU27 and UK combined (6.8% from 7.4% in 2022), approximately 13% between 2012 and 2019, while finished steel
NAFTA (5.9% from 6% in 2022), while share of CIS increased imports increased by approximately 70%, taking market share
slightly to 4.7%, it remained below their 5.5% share, prior to the from domestic producers. Over this period total finished imports
Russian invasion of Ukraine. have risen from almost 14 million tonnes in 2012 to over 23
million tonnes in 2019, causing import penetration to rise to 17%
Outside of China, steel production in world ex-China was stable,
in 2019 from 11% in 2012.
due to a significant decline in Europe being offset by growth in
developing markets, most notably India, as well as the CIS After import penetration fell slightly to 16% in 2020 as the
region, where production partially recovered. In Europe, steel COVID-19 pandemic led to a sharp decline in imports, import
production in EU27 and the UK decreased again, by penetration increased back to 19% in 2021 despite a strong
approximately. 7% year-on-year, after a 15% year-on-year rebound in ASC, as supply-side constraints led to elevated steel
decline in 2022. This was driven by capacity idling, as real steel prices, which attracted a sharp increase in steel imports. In
demand weakened, due to lagged impacts of persistent inflation 2022, the Russian invasion of Ukraine in February triggered an
and higher interest rates while destocking continued, albeit at a energy crisis in Europe, causing both ASC and imports to
slower pace than in 2022. By contrast, steel production in India decline sharply during the second half of 2022. As a result,
continued to increase strongly, rising by approximately 12% import penetration only rose marginally to 20% in 2022.
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During the first half of 2023, ASC declined by approximated 10% imports outside USMCA (United States-Mexico-Canada
year-on-year, while imports fell even further declining by Agreement). In 2020, the decline in real steel demand due to the
approximately 19% year-on-year (flat steel product -18%, long COVID -19 pandemic pushed finished steels imports to fall by
steel product -20%), pushing import penetration down to 18% 23% year-on-year to approximately 14.1 million tonnes, with
during the first half of 2023. During the second half of 2023, import penetration declining to 18%. In 2021, a combination of a
however, on a year-on-year basis, both ASC and imports strong post-pandemic steel demand recovery and elevated steel
declined marginally and import penetration recovered to rate of prices relative to global levels helped imports grow 41% year-
the second half of 2022, approximately 19%. Overall, as imports on-year to 19.9 million tonnes, far stronger than ASC growth
declined more than ASC in 2023, import penetration for the (21% year-on-year), leading to import penetration increasing to
whole year decreased to approximately 19%. However, during approximately 21% in 2021 from 18% in 2020. Steel imports
the second half of 2023, imports were much weaker in long steel continued to increase strongly during 2022, particularly during
products (-23% year-on-year), than in flat steel products, which the first half of the year before moderating during the second
rose an estimated 9% year-on-year, mainly due to weaker half as demand weaken due to destocking. As a result, in 2022,
underlying demand, particularly in construction. the increase in imports (10% year-on-year) coupled with a
decline in steel demand led to import penetration increasing to
Traditionally, imports into EU27 have come from CIS, China, over 23%. The weakening trend in imports since late 2022
Turkey, Developed Asia and the UK, with these regions continued through 2023, with imports falling by approximately
accounting for approximately 75% of imports between 2015 and 14% year-on-year. Meanwhile, with the pace of destocking
2020. While CIS had a large share of EU imports, accounting for slowing, ASC only declined by approximately 2.5% year-on-
approximately 25% of imports in 2020 and 2021, the war in year, the much sharper decline in imports pushed import
Ukraine and EU’s subsequent sanctions against Russia have penetration down to approximately 21%
resulted in a sharp decline in imports from CIS fell sharply,
particularly during the second half of 2022, and the share of Traditionally, only around one-third of U.S. finished steel imports
imports from CIS decreased to 11% in 2022. In 2023, with come from within USMCA, but since 2019 imports from Canada
finished steel imports from Russia banned, the share of imports and Mexico have increased their share to approximately 40%,
from CIS fell further to approximately 6%. The share of imports mainly at the expense of Europe, whose import share fell.
share from Turkey also fell significantly in 2023 due to the However, in 2022, after section 232 tariffs were removed, the
impact of the earthquake leading to a disruption of domestic EU import share returned to pre-2019 levels at approximately
Turkish production in February 2023 and then an increase in 14% in 2022, from 11% in 2021, while import share from
domestic demand for rebuilding work. As a result, the share of Developed Asia remained approximately 20%. In 2023, the
imports from Turkey decreased to 11% in 2023, from 17% in breakdown of imports into the U.S. was largely stable. Import
2022. Lower import share from CIS and Turkey were partially share from USMCA remained stable at approximately 40%,
offset by higher import share from Asia Pacific, especially from while import shares from EU27 remained at approximately 14%.
Developed Asia, where import share increased from The main exception is from Developed Asia, whose import share
approximately 14% between 2017 and 2021 to 21% in 2022 and decreased to approximately 18% from 20% in 2022.
further to 27% in 2023. Import share from ASEAN and India also
Source: American Iron and Steel Association total/regional imports data and ASC
rose, to 12% (from 8% in 2022) and 11% (from 9% in 2022)
data to November 2023, internal Company estimate for December 2023.
respectively. Elsewhere, import shares remained broadly similar
to 2022 levels (China: 10% share, Africa: 8% and UK: 7%). See China
“Business overview—Government regulations—Foreign trade” Chinese finished steel exports increased to 66.9 million tonnes
and “Introduction—Risk Factors and Control—Risks related to in 2021, up 24% year-on-year from 53.7 million tonnes in 2020
the global economy and the mining and steel industry—Unfair due to strong demand post-pandemic in world ex-China. In
trade practices, import tariffs and/or barriers to free trade could 2022, finished steel exports rose by only 0.8% year-on-year to
negatively affect steel prices and ArcelorMittal’s results of 67.4 million tonnes, with exports increasing from only 4.4 million
operations in various markets.” tonnes per month in the first quarter to 6.8 million tonnes in the
second quarter as major lockdowns in China (e.g. Shanghai in
Source: Eurostat imports and Eurofer ASC data to October 2023, internal company
April/May) caused a weakening of domestic steel demand.
estimates for November and December 2023. All historical data now refers to
EU27 after UK left the European Union. Despite the early reopening in December 2022 and the front-
loading of infrastructure spending, Chinese domestic steel
United States demand remained subdued as the real estate sector declined
Finished steel imports declined to approximately 18 million further. With continued weak demand in China through 2023
tonnes in 2019 (or an import penetration of 19%), after section and a large price gap to ex-China, Chinese steel producers
232 was implemented in 2018, adding a 25% tariff on most were incentivized to maintain production and push exports to

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overseas markets. As a result, Chinese finished steel exports During the second quarter of 2021, prices averaged at €1060/t
increased strongly in 2023, to approximately 91 million tonnes, in Northern Europe and €1,046/t in Southern Europe. The first
significantly higher than 67.4 million tonnes in 2022 and half of 2021 registered record high prices for both Northern and
reaching the highest level since 2016 (109 million tonnes). Southern European HRC references, respectively at €900/t and
Furthermore, with import share falling to 8 million tonnes in 2023 €887/t. Overall, European HRC prices doubled during the
from 11 million in 2022, net exports increased even more second half of 2021.
sharply to 84 million tonnes from 57 million in 2022, an increase
of 47%. However, most Chinese exports are delivered to regions The strong upward price movement recorded over the prior 12
which are not core to the Company’s business, due to the months (since mid-2020) started reversing in the second half of
protection of trade measures. Indeed, exports to EU28 (Europe 2021. In July 2021, HRC reference in Northern Europe was at
including UK) and North America declined marginally in 2023, €1,173/t, its peak for the year, while the HRC reference in
with the share of Chinese exports to EU28 and North America Southern Europe was at €1,091/t (having its peak at €1,135/t, in
falling from 10% in 2022 to 7% in 2023. In contrast, while June 2021). Despite the start of a declining trend, the average
exports to other regions increased strongly year-on-year, the for the third quarter of 2021 was still at a higher level versus the
relative export shares were relatively stable, with ASEAN the previous quarter; namely, HRC reference in Northern Europe
largest share of Chinese exports remaining at approximately averaged €1,141/t and in Southern Europe €1,051/t, being
30%. Developed Asia’s share fell slightly to 14% (15% in 2022), respectively €81/t and €5/t higher over the second quarter of
as did Africa’s share to 11% (12% in 2022), while the share from 2021. In the fourth quarter of 2021, the HRC reference in
India was stable at 6%. Elsewhere import shares increased Northern Europe and Southern Europe moved further down to
marginally to Latin America at 11% (from 10%), to Turkey at 4% €988/t and €897/t, respectively, confirming a quarter on quarter
(3%) and CIS at 3% (2%) and others to 14% (from 12%). See decline of over €150/t in each of the two regions.
“Business overview—Government regulations—Foreign trade”
This price retreat was determined, among others, by surging
and “Introduction—Risk Factors and Control—Risks related to
imports into the European Union. Particularly, the fourth quarter
the global economy and the mining and steel industry—Unfair
of 2021 started with the European HRC safeguard quota being
trade practices, import tariffs and/or barriers to free trade could
exhausted immediately by one of its core importers – India.
negatively affect steel prices and ArcelorMittal’s results of
Further downward pressure on steel prices came from the
operations in various markets.”
automotive sector’s weakening demand, in light of the continued
Source: General Administration of Customs of the People's Republic of China. global shortage of microchips.

Steel prices In the second half of 2021, HRC prices averaged €1,065/t in
Flat products Northern Europe and €974/t in Southern Europe, respectively
Economic recovery on the European continent was robust €571/t and €492/t higher than the second half of 2020.
following the peak of the second wave of COVID-19, at the end
of 2020. Demand for steel rebounded more strongly than After the continuous month on month price decline from late
anticipated and at a more rapid pace than domestic steel supply. 2021, the downward spiral reached its bottom in January 2022
This resulted in extended lead times at mills, while lower (at €927/t in Northern Europe and €837/t in Southern Europe),
deliveries to customers led to the depletion of end-users’ steel and then started to increase until the peak in April 2022 (at
inventories to historically low levels. The domestic supply- €1,346/t in Northern Europe and €1,279/t in Southern Europe).
demand tightness was further worsened by limited import offers Overall, the first quarter of 2022 averaged €1,070/t for HRC
into Europe, due to the EU safeguard measures. At the same price in Northern Europe (a €82/t increase quarter on quarter)
time, global demand and pricing (excl. Europe) was also strong, and €1,005/t in Southern Europe (a €108/t increase quarter on
creating similar pressure in most markets. Hence, import lead quarter). The price increase in the first quarter of 2022 was
times and prices were not competitive enough to alleviate the driven by the effects of the war in Ukraine (started at the end of
domestic situation in Europe (worsened by increasing freight February 2022), which led to a temporary halt of material
rates and strengthening raw material prices). This drove supplies from Russia and Ukraine, as well as an increase in
domestic HRC pricing to record high levels up to July 2021. energy costs given the risk of oil and gas supply reduction.

The price rally, which started in the second half of 2020, The beginning of the second quarter of 2022 continued with the
continued through the first half of 2021. In the first quarter of high pricing environment, as the April reference price topped the
2021, European HRC references stood at an average of €739/t March reference price. European HRC reached €1,346/t in
in Northern Europe and €727/t in Southern Europe. Northern Europe and €1,279/t in Southern Europe during April.
However, the trend from the first quarter of 2022 reversed in
May and June and then continued to decline throughout the rest

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of 2022. The second quarter of 2022 averaged €1,115/t in average HRC prices for the second half of 2023 were at €649/t
Northern Europe (up by €45/t quarter on quarter) and €1,050/t in for Northern Europe and at €638/t for the Southern Europe.
Southern Europe (up by €45/t) above the first quarter pricing.
Thus, average HRC prices for the first half of 2022 were at In the United States, domestic HRC prices continued their
€1,093/t in Northern Europe and at €1,028/t in Southern Europe. upward trend from 2020. Overall, prices in the first quarter of
2021 averaged $1,317/t, while in the second quarter of 2021
The soaring inflation rate in Europe, in particular driven by prices increased by another $382/t to $1,699/t. Similar to
higher energy costs, recessionary concerns along with Europe, steel demand rebounded faster than supply, resulting in
weakening demand and uncertainty caused by the Russia- domestic supply-demand pressures. Demand pressure led to
Ukraine war, all contributed to falling steel prices throughout the record long lead times at mills, with supply still being limited
second half of 2022. In the third quarter of 2022, North (COVID-19 related restrictions, domestic capacity constraints,
European HRC prices reached €789/t, which was a €326/t drop import limitations). Flow of steel imports into the U.S. continued
as compared to the second quarter of 2022; the South to be heavily controlled in line with Section 232 (25% tariff on
European HRC prices dropped to €757/t, a €293/t decrease most imports), but also given the tightness in supply across all
quarter on quarter. The decline continued through the fourth regions. Additionally, severe weather conditions in the United
quarter of 2022, when the price references settled at €653/t and States resulted in various logistical constraints. All of these
€651/t, respectively, indicating further quarter-on-quarter decline factors put together determined spiraling domestic HRC prices
by €136/t and €106/t, respectively. The average HRC prices for throughout the first half of 2021.
the second half of 2022 were at €721/t for Northern Europe and
at €704/t for the Southern Europe. The spiraling effect continued through the third quarter of 2021,
when the U.S. domestic Midwest HRC price reported its peak
Following the consistent month-on-month price decrease since for the year, in September, at $2,156/t, averaging the quarter at
late May 2022, the decline reached its minimum in November a record high of $2,086/t. The robust demand environment,
2022 (at €628/t in Northern Europe and €619/t in Southern coupled with a still limited supply, domestically and from imports
Europe). However, HRC prices started to turn around in early (high lead-times), transportation congestions, skyrocketing
2023. Overall, the average HRC prices for the first quarter of shipping costs, all maintained the price reference at a high level.
2023 were at €786/t for Northern Europe (a €133/t increase
quarter on quarter) and at €767/t in Southern Europe (a €116/t The last quarter of 2021 brought the U.S. domestic Midwest
increase quarter on quarter). HRC price to an average of $1,973/t, a drop of $113/t versus the
previous quarter. The price inflection was reported in October
The second quarter of 2023 followed a similar trend as in 2022. 2021, at $2,121/t, declining by $35/t month on month. This was
In the first half of 2023, HRC prices peaked in April 2023 (at a reflection of the pressure coming from rising imports and
€843/t in Northern Europe and €836/t in Southern Europe), and increasing capacity utilization of domestic mills. Furthermore,
started declining afterwards. HRC prices in Northern Europe the automotive industry (with its steel demand) continued to be
dropped in the second quarter of 2023 by €22/t quarter on subdued in light of the global microchip shortage. The second
quarter, reaching a low of €764/t, while HRC prices in Southern half of 2021 averaged $2,030/t.
Europe dropped by €30/t, down to €737/t in the second quarter
of 2023. The average HRC prices for the first half of 2023 were The price decline, which started in October 2021, continued until
at €775/t for Northern Europe and at €752/t for Southern February 2022, bottoming out at $1,214/t. The first quarter of
Europe. 2022 averaged at $1,373/t, $600/t lower quarter on quarter. This
downward pressure on prices was driven by customers’
During the third quarter of 2023, HRC prices in Europe decisions to sit on the sidelines, postponing purchases and
continued to decline reaching their lowest price in September depleting inventories, further deepening the price correction.
2023 (at €638/t in Northern Europe and €623/t in Southern Various industries (automotive, appliances) were facing
Europe). Overall, average HRC prices for the third quarter of constraints in parts’ supplies, as well as labor force shortages,
2023 were at €649/t for Northern Europe (a €115/t decrease generating weakening demand.
quarter on quarter) and at €636/t in Southern Europe (a €101/t
decrease quarter on quarter). After the low of February, the second quarter of 2022
experienced an increase in U.S. domestic Midwest HRC price,
In the fourth quarter of 2023, HRC prices began to recover, peaking in April 2022 at $1,617/t. This price increase was a
reaching their highest price in December 2023 (at €687/t in repercussion of the war in Ukraine, amid fears of disruptions in
Northern Europe and €682/t in Southern Europe); the average supply chains. The second quarter of 2022 averaged at $1,434/
HRC prices for the fourth quarter of 2023 were at €650/t for t, up by $61/t quarter on quarter, which brought the first half of
Northern Europe and at €639/t in Southern Europe. The 2022 at an average of $1,404/t.

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After the April increase, the U.S. domestic Midwest HRC price energy supply control measures in the middle of September
declined throughout the rest of the year, bottoming in November 2021, in an attempt to curb the short supply.
2022 at $715/t, while December 2022 closed the year at $749/t.
The slight increase in U.S. domestic Midwest HRC price at the In November 2021, there was however a sharp decline in the
end of the year might have been influenced by expectations that Chinese HRC price, VAT excluded, reported at $666/t (a $166/t
China would relax its nationwide COVID-19 restrictions, which drop month on month), which was a direct effect of the Chinese
was expected to improve consumer demand. In the second half Government’s intervention in loosening the electricity supply and
of 2022, the U.S. domestic Midwest HRC price averaged at relaxing the control on coal prices. Downstream demand for
$840/t, lower by $564/t than the first half of 2022. steel products was reported sluggish by the end of the year,
given the seasonality and the uncertain epidemic situation
U.S. domestic Midwest HRC price increased during the first domestically.
quarter of 2023 averaging $1,021/t (a quarter-on-quarter
increase of $254/t). In the second quarter of 2023, the U.S. In the fourth quarter of 2021, the Chinese domestic HRC, VAT
Midwest domestic HRC price registered its peak across the first excluded, ended at an average of $699/t, a $90/t decrease
six months of the year, in April 2023 at $1,291/t. In May and quarter on quarter, but still $136/t up from the last quarter of
June 2023, the price started to deteriorate. The average for the 2020. The Chinese price reference was reported for the second
second quarter of 2023 was at $1,161/t which brought the first half of 2021 at $744/t, up $33/t compared to the first half of
half of 2023 at an average of $1,091/t. The price evolution 2021.
throughout the first half of 2023 was strongly influenced by the
After the November 2021 $666/t low, the Chinese HRC price,
limited domestic supply, particularly given the lower import
VAT excluded, started gradually to rehabilitate, reaching a level
levels, which have driven lead times to be longer than typical,
of $717/t, VAT excluded, in March 2022, the highest reported
but also the occurrence of several domestic mill outages
level for 2022. In the first quarter of 2022, the Chinese HRC
(planned for maintenance activity).
price averaged $701/t, VAT excluded, $2/t higher quarter on
In the third quarter of 2023, U.S. Midwest HRC price averaged quarter. From April onwards, the HRC price showed a month-on-
$867/t as prices continued to decline month-on-month, reaching month decline till November 2022 leading to the following
its lowest level in September 2023 at $789/t. After experiencing quarterly averages: $650/t, VAT excluded, in the second quarter
low HRC prices in September 2023, the fourth quarter of 2023 of 2022 ($50/t decrease quarter on quarter), $512/t, VAT
experienced an increase in U.S. domestic Midwest HRC prices, excluded, in the third quarter of 2022 ($139/t decrease quarter
ending the year with $1,200/t in December 2023, bringing the on quarter) and $488/t, VAT excluded, in the fourth quarter of
second half of 2023 at an average of $938/t, which was still 2022 ($24/t decrease quarter on quarter).
lower than the first half of 2023 by $153/t.
The HRC price performance in China was deeply affected by
In China, at the beginning of 2021, steel prices continued their the multiple COVID-19 pandemic outbreaks which paralyzed
upward trend which started in September 2020. In the first various parts of the country from March 2022 onwards. The
quarter of 2021, HRC prices averaged $650/t VAT excluded. Chinese economy has been crippled by disrupted manufacturing
The average of the first half of 2021 reached $711/t. Domestic activity, by paralyzed distribution in the supply chains, and
prices continued an upward trend until May 2021, reaching the subsequent weakened demand, all following the lockdowns
peak at $812 /t, VAT excluded. In June 2021, prices slightly imposed since the end of the first quarter of 2022. However, by
weakened to $755/t, VAT excluded, a $57/t drop month on the end of 2022, given expectations that lockdown requirements
month. This change came as a result of the abolition of export were to be lifted following societal pressure, a slight increase in
rebates announced by the Chinese Government from May 2021 the Chinese HRC price was recorded in December 2022, up by
onwards, a measure that was intended to discourage steel $43/t month on month, to $514/t, VAT excluded. The half yearly
exports, and accordingly keep steel prices under check. averages reached $676/t in first half of 2022 and $500/t in the
second half of 2022, VAT excluded.
The third quarter of 2021 continued at an elevated level of $789/
t for the HRC in China, VAT excluded, with the peak of the year The price increase reported in December 2022 continued
reached in October at $865/t. The increasing environmental throughout the first quarter of 2023, when the Chinese HRC
regulations imposed in China, enforcing steel production cuts in price, VAT excluded, reached an average of $551/t (a $63/t
such regions as Jiangsu and Tangshan, particularly in the increase quarter on quarter). The following quarter recorded a
second half of the year, along with tensions in the limited supply reversal of trend, Chinese HRC price, VAT excluded weakened
of raw materials have all pushed the Chinese domestic HRC to $499/t (a $52/t decrease quarter on quarter). In the early
price upwards. Additional pressure came with the introduction of months of 2023, steel demand in China (particularly from real
estate and infrastructure sectors) was still slow in building

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momentum to support stronger price increases. At the same Europe with strengthening consumer demand, hand in hand
time, on the supply side, the recovery in domestic steel with a limited supply of steel, domestically, and resulting long
production was stronger than the recovery in demand, thus lead times. In this context, EU steel safeguard measures (in
generating market imbalances. Price-wise, the first half of 2023 place on steel products since 2019) have only put additional
averaged at $525/t, VAT excluded, strengthening by $25/t as strain on domestic markets and limited imports. In the first half
compared to the second half of 2022. of 2021, the price reference in Europe for medium sections
stood at €785/t and for rebar at €670/t.
During the third quarter of 2023, prices in China experienced a
continuous decline, with the Chinese HRC price, VAT excluded, The favorable pricing environment continued through the third
averaging $482/t. Although the Chinese HRC price hit a low of quarter of 2021, peaking in August at €1,050/t for medium
$466/t, VAT excluded in October 2023, it began to rise and sections and €845/t for rebar, which almost doubled over a year.
reached $503/t, VAT excluded, by December 2023. The average The average price for the third quarter was reported at a record
price for the second half of 2023 was $483/t, VAT excluded, high level of €1,039/t for medium sections and €826/t for rebar.
reflecting a $42/t decrease compared to the first half of 2023. Strong demand, increasing freight costs and ports congestions
all reinforced the elevated price levels in Europe up to that point
Flat products in time.

Northern Southern United However, from September 2021 onwards, domestic prices
Europe Europe States China
started changing direction. The fourth quarter of 2021 started
Source: S&P Spot HRC
Global Spot HRC Spot HRC Spot HRC average with October at a level of €1,000/t for medium sections and
Commodity average average average price per €799/t for rebar (down by roughly €50/t each since the peak in
Insights price per price per price per tonne, VAT
(Platts) tonne tonne tonne excluded August) and ended at a lower point, in December, at €991/t and
€790/t, respectively. The quarterly average was reported for
Q1 2021 €739 €727 $1,317 $650 medium sections at €995/t and rebar at €795/t. This decline over
Q2 2021 €1,060 €1,046 $1,699 $773
the last four months of the year was determined by the
rebalancing of the European demand-supply situation, with
Q3 2021 €1,141 €1,051 $2,086 $789
domestic mills reporting strong production figures throughout the
Q4 2021 €988 €897 $1,973 $699
year.

Q1 2022 €1,070 €1,005 $1,373 $701 The average price references in the second half of 2021 were
Q2 2022 €1,115 €1,050 $1,434 $650 recorded at €1,017/t for medium sections and €811/t for rebar,
Q3 2022 €789 €757 $913 $512
almost double as compared to the second half of 2020.

Q4 2022 €653 €651 $767 $488 In the first quarter of 2022 prices continued to increase in
Europe, with medium sections averaging at €1,172/t and rebar
Q1 2023 € 786 € 767 $1,021 $551 at €928/t. This upward trend continued until April 2022, when
Q2 2023 € 764 € 737 $1,161 $499 each of the two price references hit the yearly peak at €1,500/t
Q3 2023 € 649 € 636 $867 $482
and €1,313/t, respectively. As in the case of European HRC
price fluctuation, medium sections and rebar pricing in Europe
Q4 2023 € 650 € 639 $1,010 $485
was affected by the war in Ukraine, which altered and delayed
the standard flow of semi-finished and finished steel products in
Long products
Europe, pushing buyers to panic purchases in the early part of
Steel prices for long products in Europe started in January 2021
2022.
at a level of €723/t for the medium sections and €625/t for rebar.
By March 2021, prices strengthened by €5/t and €8/t, From May onwards, throughout the rest of the year, medium
respectively, reaching €727/t for medium sections and €633/t for sections and rebar prices in Europe started weakening, both
rebar. The average prices for the first quarter of 2021 were references hitting the bottom in December 2022, at €985/t and
reported at €722/t for medium sections and at €629/t for rebar. €749/t, respectively. The global supply disruptions caused by
In the second quarter of 2021, prices continued to strengthen, the war, the looming fears of a recession in Europe driven in
reaching an average of €860/t for the medium sections and part by soaring energy costs, and weakening domestic demand,
€710/t for rebar, up by €138/t and €81/t accordingly versus the all pushed medium sections and rebar pricing on a downward
first quarter. spiral through most of 2022. The quarterly averages of the two
price references were thus in a free-fall since the second quarter
The continued upward price movement over the first half of
of 2022, when reported at €1,426/t for medium sections and
2021 was defined by the recovering domestic economies in
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€1,220/t for rebar, ending in the fourth quarter of 2022 at €1,072/ The average for the second quarter of 2021 stood at $703/t,
t (a €354/t decrease over the last three quarters) and at €814/t driving an average for the first half of 2021 at $662/t (a $190/t
(a €406/t decrease over the last three quarters). Prices in the increase compared to the second half of 2020 and a $246/t
first half of 2022 were reported at €1,299/t for medium sections increase compared to the first half of 2020).
and at €1,074/t for rebar, and at €1,141/t for medium sections
and €898/t for rebar in the second half of 2022. After the peak in export price registered in May 2021 at $744/t
for Turkish rebar FOB, it started to weaken in the following
In the first half of 2023, steel prices in Europe for medium months, reaching the yearly low of $665/t in September 2021.
sections and rebar continued their downward trend (started in Export prices have been decreasing on account of weakening
the second quarter of 2022), weakening month by month, and long steel demand and dropping scrap costs. Furthermore,
reaching €820/t and €593/t, respectively, in June 2023. The Turkey continued to be heavily hit by the domestic financial
medium sections price decreased over the first half of 2023 by turmoil with high inflation/interest rates and destabilized
€168/t, from the January 2023 level of €988/t; while the rebar domestic currency.
price weakened by €158/t over the same period, being in
January 2023 at €751/t. In the third and fourth quarter of 2021, Turkish rebar for export
was priced at $691/t and $713/t FOB, respectively, ending the
Overall, the European rebar market was showed unstable signs second half of the year at $702/t ($230/t higher year on year).
throughout the first half of 2023, with an imbalance between
demand and supply of steel. In spite of energy and shipping In the first half of 2022, Turkish rebar price for export gradually
costs gradually coming down in Europe, lowering pressure on expanded to a high of $936/t FOB in April 2022, a level above all
mills, consumption on the market remained at low levels, previously reported prices since 2008, and the peak in 2022.
preventing sustained pricing. Prices in the first quarter of 2023 From May onwards, Turkish rebar reference prices started to
averaged €964/t for medium sections and €722/t for rebar, while decline, reaching a first “seasonal” low in August 2022, at $644/t
in the second quarter of 2023, these averages dropped to €889/t FOB, and then one more low in November, at $637/t FOB. The
for medium sections and €649/t for rebar, a decrease of €75/t slight increase in pricing during September and October was a
and €73/t, respectively. direct result of increasing manufacturing costs, after the latest
increase in power and gas prices domestically.
In the third quarter of 2023, prices for medium sections
averaged €805/t and rebar €577/t, a quarterly €84/t and €72/t Overall, the evolution of the Turkish rebar price for export was
decrease, respectively. In the fourth quarter of 2023, medium driven up in the first half of the year, mainly by rising cost
sections prices continued to decline reaching the lowest level of components, such as the imported scrap HMS 80/20 which
€758/t in November 2023. Even though the prices improved in peaked in March 2022 at $641/t, as well as soaring electricity
December 2023 averaging €765/t, the average prices for the costs. On its downward trend from May 2022, Turkish rebar for
fourth quarter of 2023 were still lower than in the third quarter of export was strongly impacted by the war in Ukraine, as well as a
2023. On the other hand, rebar prices recovered as they global softening demand. The Turkish market had to absorb
reached an average of €606/t in the fourth quarter of 2023, with increased volumes of Russian material, Turkey being among the
the highest price in December 2023 at €620/t. Prices in the first few global markets that did not have sanctions against Russia.
half of 2023 averaged €927/t for medium sections and at €685/t
After a strong second quarter of 2022, when the Turkish rebar
for rebar as compared to average prices at €785/t for medium
for export was reported at $808/t FOB ($13/t increase quarter on
sections and €591/t for rebar in the second half of 2023.
quarter), the subsequent periods went into decline, with the third
In Turkey, rebar export prices started strongly at $630/t in quarter of 2022 reported at $665/t FOB and the fourth quarter of
January 2021, ending the first quarter of 2021 $2/t below at 2022 $5/t below, at $660/t FOB. Thus, the first half of 2022
$628 /t. At the end of March 2021, the construction season was reached an average of $802/t FOB and the second half of 2022
only starting and demand for steel was growing more strongly at $663/t FOB.
than anticipated, COVID-19 vaccination programs were
After the lows of November 2022 (at $637/t FOB), the Turkish
progressing, and market sentiment was improving after the
rebar price for export started to gradually strengthen in the first
second wave of COVID-19 infections. Therefore, the second
quarter of 2023, reaching a peak value in March 2023, at $727/t
quarter of 2021 continued the upward trend, with April 2021
FOB. The first quarter of 2023 averaged $708/t FOB, up by $48/
recording an export price of $639/t for Turkish rebar, and ending
t FOB over the last quarter of 2022. From April onwards, Turkish
in June at $726/t, representing a $87/t price increase over three
rebar price for export reversed its upward trend, averaging
months.
$637/t FOB in the second quarter of 2023, a $71/t decrease
quarter-over-quarter. The global demand recovery for steel

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products did not see strong movement throughout the first half average prices over specified periods. Therefore, there may not
of 2023, given the extended looming fears of recessions in be a direct correlation between market reference prices and
different parts of the world, as well as the inflationary struggles actual selling prices in various regions at a given time.
of economies. Similar to the first half of 2023, the third quarter
and fourth quarter of 2023 experienced further declines in Iron ore
prices, at $569/t FOB and $574/t FOB, respectively. Thus, the In 2021, iron ore market reference prices averaged $159.89/t
first and second half of 2023 averaged $673/t FOB and $571/t (up 46.6% as compared to 2020), driven by post-pandemic
FOB, respectively. fiscal stimulus packages launched in main economies, which
boosted global demand for steel and iron ore and by increased
Long products crude steel production in China in the first half of the year as
steel mills were driven by high steel profits. At the same time,
Source: S&P Europe medium Europe rebar Turkish rebar
Global sections iron ore supply recovered rather slowly due to global epidemic
Commodity bringing shortages in labor and ports congestion.
Insights (Platts) Spot average Spot average Spot FOB
price per tonne price per tonne average price
per tonne
In 2022, iron ore market reference prices decreased to an
Q1 2021 €722 €629 $621 average of $120.03/t, down by 24.9% compared to an average
Q2 2021 €860 €710 $703 of $159.89/t in 2021, mainly due to collapsing market confidence
Q3 2021 €1,039 €826 $691 as China implemented strict lockdowns across the country
Q4 2021 €995 €795 $713 starting in mid-March, boycotts from homebuyers in China
resulting from failures to meet construction schedules which
Q1 2022 €1,172 €928 $795 weighed further on the crisis-stricken real estate sector, harsh
Q2 2022 €1,426 €1,220 $808 weather conditions in the summer and the US Federal
Q3 2022 €1,210 €981 $665 Reserve’s tightening of its monetary policy.
Q4 2022 €1,072 €814 $660
In 2023, iron ore market reference prices averaged $119.58/t,
Q1 2023 € 964 € 722 708 relatively stable compared to an average of $120.03/t in 2022.
The first quarter of 2023 began with an increase in reference
Q2 2023 € 889 € 649 637
prices mainly driven by prevailing bolstered sentiment on scrap
Q3 2023 € 805 € 577 569
of COVID control in China, which was later counteracted by the
Q4 2023 € 766 € 606 574 disappointing actual economy recovery, largely dragged by its
real estate woes and sliding exports. By the end of 2023, iron
Raw materials ore market reference prices increased to $141.92/t on
The primary raw material inputs for a steelmaker are iron ore, December 27, a record high for the period dating back to June
coking coal, solid fuels, metallics (e.g., scrap), alloys, electricity, 9, 2022, driven by lower port inventory, stimulus anticipation and
natural gas and base metals. ArcelorMittal is exposed to price strong demand outlook for Chinese economy in the first quarter
volatility in each of these raw materials with respect to its of 2024, following the deposits rate cut by Chinese commercial
purchases in the spot market and under its long-term supply banks on December 22, 2023.
contracts. In the longer term, demand for raw materials is
expected to continue to correlate closely with the steel market, In the first quarter of 2021, the seaborne iron ore price averaged
with prices fluctuating according to supply and demand $167.40/t, up 25.5% compared to the previous quarter. Post-
dynamics. Since most of the minerals used in the steelmaking pandemic fiscal stimulus packages launched in main economies
process are finite resources, their prices may also rise in as well as easing monetary policies significantly boosted global
response to any perceived scarcity of remaining accessible demand for steel and indirectly for iron ore. Meanwhile, iron ore
supplies, combined with the evolution of the pipeline of new supply recovered rather slowly due to the global pandemic
exploration projects to replace depleted resources. causing shortages in labor and port congestion as well as due to
weather disruption in major iron ore producing countries and
As for pricing mechanisms, since 2012, quarterly and monthly mine safety and environmental inspection in China.
pricing systems have been the main type of contract pricing
mechanisms, but spot purchases also appear to have gained a In the second quarter of 2021, the seaborne iron ore price
greater share as steelmakers have developed strategies to skyrocketed to $219.26/t on June 7, 2021 and stayed high until
benefit from increasing spot market liquidity and volatility. The the end of the quarter, averaging the record $200.47/t. The price
trend for using shorter-term pricing cycles has continued since increase was fueled by high demand from China as its steel
2020. Pricing is generally linked to market price indexes and mills increased crude steel production, motivated by high steel
uses a variety of mechanisms, including current spot prices and profits. Concerns on tight supply were further increased on

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account of a flood accident at Dahongcai mine on June 10, 2021 construction schedules and disappointing GDP growth in the
in the Shanxi province. second quarter (0.4%). Though prices recovered to $119.74/t on
July 28 based in part on the Chinese government's
In the third quarter of 2021, the seaborne iron ore price started announcement that China would launch a real estate relief fund
to decline and averaged $163.39/t, having lost $37/t compared of up to CNY300 billion ($44 billion) to help property developers
to the previous quarter. Seaborne supply remained stable, while resolve a crippling debt crisis, as well as expectation of mills’
the demand dropped significantly in China mainly due to production ramp-up with improving margins, seaborne iron ore
heightened efforts by the government to cut 2021 crude steel prices were again on a downward trend from August 2022 due
production below 2020 levels and stringent carbon emission to COVID-19 related lockdowns and harsh weather conditions.
controls. Meanwhile, the real estate sector, which is the largest
steel consuming sector, showed weakening due to China’s In the fourth quarter of 2022, seaborne iron ore prices
property deleveraging campaign starting in the beginning of decreased to the lowest level of $79.06/t in late October as the
2021. market anticipated President Xi's succession would return China
to its Maoist ideology-policies and stick to its strict zero-COVID
In the fourth quarter of 2021, the seaborne iron ore price control. However, easing of measures of COVID control
averaged $110.59/t reaching the lowest point of $87.27 of the announced on November 10, and December 7 and the complete
year on November 18. China steel production further reduced withdrawal of COVID controls announced on December 27,
due to a national wide power shortage, inspection on crude steel 2022, effective January 8, 2023, signaling a market reopening
cut and air quality control during heating season. Weakening of and boosting sentiment, pushed iron ore prices to $117.82/t at
the Chinese economy due to shrinking consumption, supply the end of December 2022. Meanwhile, Brazil received early-
shock, weakening exports and uncertainties on Covid-19 lead to than-expected rainfall in December, which reduced the supply to
bearish market sentiment. In addition, the Evergrande crisis seaborne market, adding on Vale's already stagnating shipment
together with crises at other property developers, such as the performance ultimately below its initial yearly guidance.
Fantasia Group, weighed further on an already debt-laden real
estate sector. In the first quarter of 2023, seaborne iron ore prices soared to
an average of $125.28/t, an increase of $26.63/t as compared to
In the first quarter of 2022, after an initial increase in seaborne the fourth quarter of 2022, primarily driven by boosted market
iron ore prices to $161.65/t in early March mainly driven by sentiment after China announced lifting of COVID controls on
bullish sentiment that Chinese steel production would ramp-up December 27, 2022. The market sentiment remained firm in
after the government announced a 5.5% GDP growth target for China throughout the first quarter of 2023 due to strong demand
2022 and a stimulus packages targeted at the construction and recovery expectations in the second quarter of 2023 amid a
infrastructure sectors, iron ore prices dropped to $136.19/t in slew of relaxing policies announced in the real estate sector and
mid-March following a sudden COVID -19 outbreak in China and easing monetary policies. Meanwhile, the U.S. Central Bank
the implementation of strict lockdowns. also slowed its rate hike pace. Crude steel output during the first
quarter of 2023 in China reached 264 million tonnes, an
In the second quarter of 2022, seaborne iron ore prices in China
increase of 18 million tonnes, or 7%, as compared to the first
again rebounded to $160.69/t in early April driven by supply
quarter of 2022, a new record despite weak fundamentals in the
concerns due to low shipments and intensifying war between
steel industry with low downstream demand, high steel inventory
Russia and Ukraine. However, iron ore prices dropped to
and poor steel mills’ margins. On the other hand, iron ore
$108.98/t in June with collapsing market confidence due to a
seaborne supply for the first quarter of 2023 was sufficient,
severely hampered Chinese economy with repeated lockdowns
mainly due to benign weather conditions in Australia. During the
across the country. Steel demand deteriorated as a result of
first quarter of 2023, seaborne iron ore imports in China surged
lukewarm downstream activities, historic high steel inventory
to 294 million tonnes, a 26 million tonnes or 10% increase of as
levels both in mills and traders’ warehouses, and inclement
compared to the first quarter of 2022, a new record for this
weather conditions. Ex-China demand also weakened with
period.
rising inflation and the US Federal Reserve’s tightening
monetary policy. In the second quarter of 2023, seaborne iron ore prices dropped
to an average of $110.57/t, a $14.71/t decrease as compared to
In the third quarter of 2022, growing global recession fears
the first quarter of 2023 while China's stronger than expected
coupled with a new COVID-19 pandemic outbreak and
recovery in GDP growth during the first quarter of 2023 was
continued weakness in China’s property sector dampened world
unsustainable and market participants turned to bearish mood.
steel and iron ore demand. Seaborne iron ore prices dropped to
However, the China hot metal output level remained elevated
$96.04/t on July 15, 2022 due to a cross-country homebuyers
during the same period. During the second quarter of 2023,
mortgage boycott to protest developers’ failure to meet
China's average daily hot metal output was 2.43 million tonnes,
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a 2.3% increase year-on-year. Meanwhile, Chinese steel production and logistics in Queensland, and a severe rise in
exports soared to 43.9 million tonnes during the first six months COVID-19 pandemic cases. Russia’s invasion of Ukraine sent
of 2023, a 10.4 million tonne or 31% increase as compared to prices to new records in March 2022. Prices increased in
the first half of 2022, which largely absorbed the steel supply December 2022 as China neared lifting its ban on Australian
surplus. On the other hand, during the second quarter of 2023, coal imports.
average seaborne supply from Australia and Brazil increased by
1% as compared to the second quarter of 2022, adding Coking coal prices in 2023 averaged $295.97/t as compared to
pressure on iron ore prices. $364.22/t in 2022. Although, the metallurgical coal prices for
2023 decreased slightly, they still remained at a historic high at
In the third quarter of 2023, seaborne iron ore prices increased year end. The supply disruption in Australia, caused by the wet
to an average of $114.00/t, a gain of $3.57 as compared to the season, port maintenance, higher vessel queues, and lower
second quarter of 2023, primarily supported by boosted production from BHP, South 32, and Anglo due to longwall
sentiment following a slew of supportive policies from monetary, issues, coupled with the strong demand from India and China,
real estate and fiscal fronts in China. China has gradually kept the prices at an elevated level. In the Chinese market,
scrapped home purchase limits across the country since the end continuous mine accidents and safety checks resulted in
of August 2023. Furthermore, seaborne iron ore prices dropped increased domestic coking coal prices.
to $102.97/t on August 3 due to concerns around potential cuts
on steel production in China and lack of strong stimulus policies In the first quarter of 2021, the average coking coal price rose to
to boost economy. Seaborne iron ore prices then soared to $128.22/t (Metal Bulletin Premium HCC FOB Australia index), a
$126.20/t on September 15 driven by pre-China National 17% increase as compared to the previous quarter, effectively
Holiday stock replenishment and PBoC’s reserve requirement reversing the fall which followed China’s informal restrictions on
ratio (RRR) cut. Seaborne iron ore imports in China surged to Australian metallurgical coal imports in October 2020. Suppliers
301 million tonnes, an increase of 19 million tonnes as locked into new demand sources and buyers and sellers
compared to the second quarter of 2023, a new record for the reorganized supply chains. Prices were also boosted by fears
past three years. over weather disruptions at Queensland ports, with cyclone
season often peaking in the late summer.
In the fourth quarter of 2023, seaborne iron ore prices increased
to an average of $128.27/t, an increase of $14.27/t compared to In the second quarter of 2021, the average price rose by an
the third quarter of 2023. Prices strengthened primarily due to additional 8% to $138.78/t, supported by improving global
low Chinese port inventory, year-end mills' stock replenishment, industrial production and economic activity.
relatively elevated hot metal output, stronger-than-expected
Metallurgical coal prices surged in September 2021 and the
performance from sectors of auto, shipping, and renewable
average price for the third quarter of 2021 increased to $264.25/
energy, coupled with bolstered sentiment stemmed from a slew
t, driven by tight spot supply from major producers in
of economy-favorable policies. Iron ore seaborne prices reached
Queensland, Australia and rising demand from ex-China
$141.92/t on December 27 ahead of 2024 due to low port
regions. The diversion of Australian coal from China to other
inventory, stimulus anticipation and strong demand outlook for
markets was effectively complete, with the previous surplus of
the Chinese economy in the first quarter of 2024, following
Australian supply largely redirected.
Chinese commercial banks’ deposits rate cut on December 22.
In October and November, metallurgical coal prices levelled out
Coking coal
and the average price for the fourth quarter of 2021 was settled
Coking coal prices in 2021 averaged $227.29/t as compared to
at 369.81$/t. Cuts in crude steel production in China did not lead
$123.46/t in 2020. Metallurgical coal prices were at historic
to any easing in prices but may have curbed further upward
highs for several months, as supply shortages met strong
momentum.
Chinese demand and rebounding global industrial production.
China’s informal import restrictions on Australian exports obliged In the first quarter of 2022, metallurgical coal prices reached
the country’s steel mills to draw in supply from non-Australian historic highs and averaged $487.09/t amid a faster than
sources. On balance, Chinese metallurgical coal imports expected demand recovery, a tight global supply situation and
dropped significantly in 2021. India, Japan, South Korea and the geopolitical tensions. Australia was confronted with both heavy
EU have all switched to Australian-sourced imports in response. rainfall (which affected production and logistics in Queensland),
and a severe rise in COVID-19 cases, which disrupted
Coking coal prices in 2022 averaged $364.22/t as compared to
workforces at mining operations. In addition, the Russian
$227.29/t in 2021, driven by a faster than expected demand
invasion of Ukraine pushed prices to new records in March 2022
recovery, tight global supply situation and geopolitical tensions.
as uncertainty over coal shipping prevailed in the market.
Australia was confronted with both heavy rainfall, which affected
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In the second quarter of 2022, metallurgical coal prices quarter of 2023. The price increase was mainly due to the
decreased to an average of $445.95/t with markets evaluating supply disruptions caused by low quarterly production by majors
the uncertainty of the war in Ukraine. In Australia, lower rainfall producers, e.g., BHP, South 32 etc., and port maintenance at
during June 2022 supported exports and put downward Hay Point, DBCT, and Abbot. The price hike was also driven by
pressure on prices. the strong post-monsoon demand in India. China’s domestic
coking coal prices increased due to continuous mine accidents,
Coking coal prices were down in the third quarter of 2022 at resulting in a closer price correlation between China’s domestic
$250.96/t. The decrease initially appeared to be a correction pricing and the Australian price index.
following the increase in prices in response to the war in Ukraine
and was then sustained by weaker demand from steel In the fourth quarter of 2023, metallurgical coal prices increased
producers. As announced in April 2022, on August 10, 2022, the to an average of $335.07/t, a further increase of $70.7/t as
EU enforced its ban on coal imports from Russia. compared to the third quarter of 2023. Price increase is mainly
driven by an uptick demand from India and China. Furthermore,
In the fourth quarter of 2022, unfavorable weather conditions China was facing temporary mine closures due to accidents
hindered the expansion of coal-mine output in Australia and the mainly in Shanxi, which lead to enhanced safety inspections
metallurgical coal prices averaged at $279.23/t compared to from government authorities. Meanwhile Australian supply was
$369.81/t in the fourth quarter of 2021. The anticipated end of tight due to BHP’s port maintenance at the end of November
China's ban on Australian coal imports increased the price to and fear of potential strikes at its coal mines in Queensland in
$315.05/t at the end of the year. Despite a bearish global December. The shipment delays in Australia during the wet
economic outlook, the coking coal spot market remained tight, season were lower due to the El Nino pattern this year. As a
aggravated by the inversion of the met-thermal pricing relation. result, spot liquidity was tight, which helped in driving up the
coking coal prices.
In the first quarter of 2023, metallurgical coal prices averaged at
$342.52/t as compared to $279.23/t in the fourth quarter of ArcelorMittal has continued to leverage its iron ore and coking
2022. The prices increased due to a mixture of supply coal supply chain and diversified supply portfolio as well as the
disruptions and strong coking coal demand. In Australia, severe flexibility provided by contractual terms to mitigate regional
rainfall during the rainy season, with the La Nina pattern supply disruptions and also mitigate part of the market price
persisting, impacted the major mining region in Queensland. In volatility.
January 2023, cyclone Ellie disrupted portside operations at
Abbot Point, Hay Point and DBCT and negatively affected Iron ore Coking coal
production at coal mines due to floods. Additionally, a train average price per average price per
derailment occurred in January 2023 on a major rail line in tonne (Delivered to tonne (premium hard
China, Metal Bulletin coking coal FOB
Queensland resulted in a number of rail service cancellations index, 62% Fe) Australia index)
Source: Metal Bulletin
and consequent delayed shipments. Coking coal prices
remained at elevated levels during the first quarter of 2023,
Q1 2021 167.40 128.22
fueled by coal trade resumption between Australia and China
Q2 2021 200.47 138.78
and by strong demand from other major Asian economies for
Q3 2021 163.39 264.25
Australian coals. Q4 2021 110.59 369.81

In the second quarter of 2023, metallurgical coal prices came

Q1 2022 141.61 487.09
down to an average of $240.93/t, driven by an improvement on 137.57 445.95
Q2 2022
the supply side and a lackluster demand side. Production at Q3 2022 103.47 250.96
major Australian mines was stable with no major accident or Q4 2022 98.65 279.23
weather related event reported. On the demand side, the major
steel producing economies remained muted with India being the Q1 2023 125.28 342.52
exception. Tepid Ex-China demand led to a closer correlation Q2 2023 110.43 240.93
between China domestic pricing and Australian price index,
Q3 2023 114.00 264.37
based on fundamentals. Hence, 10 rounds of price cuts in
Q4 2023 128.27 335.07
China, due to weak domestic steel demand and poor steel
profitability, also contributed to a decline of the Australian price
Scrap
index.
The Company considers the German suppliers’ index (“BDSV”)
In the third quarter of 2023, metallurgical coal prices increased Delivered at Place (“DAP”) as market reference.
to an average of $264.37/t, $23.44/t higher than the second

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During 2023, the BDSV for reference grade E3 started in High carbon ferro manganese prices decreased by 39% from
January and February at €377/t and €381/t, respectively. Until $2,042/t in 2022 to $1,244/t in 2023 ($1,803/t in 2021), silicon
April, prices continued to increase reaching €413/t. Thereafter, manganese decreased by 40% from $2,123/t in 2022 to $1266/t
prices started to decline from May 2023 and reached at €325/t in 2023 ($1,819/t in 2021) and medium carbon ferro manganese
in August 2023, the lowest in 2023. However, prices reached prices decreased by 45% from $3,332/t in 2022 to $1,832/t in
€365/t in December 2023, the highest level in the second half of 2023 ($2,861/t in 2021). Demand for manganese alloys was low
2023. and is expected to continue declining, particularly in Europe,
with inventories still high for most products including the
The average index price for 2023 was €365/t as compared to standard alloys.
€409/t in 2022, a €44/t or 11% decrease compared to 2022. The
average index price in 2021 was €395/t. Base metals
Base metals used by ArcelorMittal are zinc, tin and aluminum for
Turkey’s scrap imports decreased by 14% to 15.5 million tonnes coating, aluminum for deoxidization of liquid steel and nickel for
in the first ten months of 2023 compared to the same period of producing stainless or special steels. ArcelorMittal partially
2022. Turkey remains the main scrap buying country in the hedges its exposure to its base metal inputs in accordance with
international market. Turkey’s total crude steel output reached its risk management policies.
30.5 million tonnes for the first eleven months of 2023, down by
6.15% as compared to 32.5 million tonnes produced in the same The average price of zinc for 2023 was $2,649/t, representing a
period of 2022. 24.0% decrease as compared to the 2022 average price of
$3,485/t (the 2021 average was $3,005/t). Stocks registered at
Scrap Index HMS 1&2 CFR Turkey, North Europe origin, started the London Metal Exchange (“LME”) warehouses stood at
January 2023 at $407/t and then continuously increased until 224,825 tonnes as of December 31, 2023, representing around
reaching $451/t in March 2023. From April 2023 onwards, the 602% increase compared to December 31, 2022 when
index declined reaching the lowest level of 2023 at $357/t in registered stocks stood at 32,025 tonnes (199,575 tonnes on
October 2023. Thereafter, the index started to increase again
December 31, 2021).
reaching $415/t in December 2023.
The average price of tin for 2023 was $25,895/t, 16.7% lower
In 2023, the average prices for European domestic scrap price
than the 2022 average of $31,102/t (2021 average was $32,678/
of grade 3 was at $395/t, a $3/t higher than the export price of
t).
HMS 1&2 CFR Turkey, North Europe origin. In 2022, average
European domestic scrap prices of grade 3 were at 434$/t, 3$/t The average price of aluminum for 2023 was $2,252/t,
lower as compared to export prices of HMS 1&2 CFR Turkey, representing a 16.8% decrease compared to the 2022 average
North Europe origin. of $2,707/t (the 2021 average was $2,475/t).

In the domestic U.S. market, HMS 1 delivered Midwest index in The average price of nickel for 2023 was $21,474/t,
2023 was $38/t lower than the 2022. The Midwest Index representing a 16.1% decrease compared to the 2022 average
decreased from an average of $387/t in 2022 to $349/t in 2023. of $25,604/t (the 2021 average was $18,487/t).

On the export market, HMS export FOB New York average Energy market
prices for 2023 were at $364/t, a decrease of $34/t compared to Solid fuels, electricity and natural gas are some of the primary
2022. energy inputs for a steelmaker. ArcelorMittal is exposed to price
volatility in each of these energy types with respect to its
Ferro alloys and base metals
purchases in the spot market and under its long-term supply
Ferro alloys contracts.
The underlying price driver for manganese alloys is ordinarily
Oil
the price of manganese ore, which was at the level of $5.22 per
In 2021, oil prices recovered strongly. In early January, Brent
dry metric tonne unit (“dmt”) (for 44% lump ore) on Cost,
crude oil traded slightly below $55 per barrel ("bbl") and rose to
Insurance and Freight (“CIF”) China for 2023, representing a
over $86/bbl at its highest by the end of November. In 2021,
12.6% decrease from $5.97/dmt in 2022 ($5.27/dmt in 2021).
Brent crude oil averaged $70.95/bbl as compared to $43.20/bbl
Decrease in steel production activity entailed lesser demand for
in 2020. The strong price increase was fueled by optimism
manganese and higher manganese ore stocks in China toward
around the mass vaccine roll out and a strong economic
the end of 2023. Manganese ore prices followed the downward
recovery.
trend throughout the 2023 responding to the surplus in the
market.

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In 2022, oil prices were exacerbated by the war in Ukraine. The following table shows quarterly average prices of oil and
Brent crude oil peaked at almost $140/bbl early March and CO2 for the past three years:
traded range-bound between $100-$125/bbl until end of July,
and only periodically breaking the $100/bbl mark. Commodities
Fundamentally, the market was torn between the Organization Source: Thomson Brent crude oil European Union
Reuters spot average price $ allowance
of Petroleum Exporting Countries ("OPEC") and its allies per barrel average price
struggling to meet their rising output quotas, embargoes on € per ton of CO2e
Russian oil and concerns over an overall negative economic Q1 2021 61.32 37.65
outlook. Brent crude oil averaged $99/bbl in 2022, an increase Q2 2021 69.08 50.17
of $28/bbl compared to the previous year. Q3 2021 73.23 57.12
Q4 2021 79.66 68.83
The prospect of stronger demand from China supported prices
during this first quarter of 2023 leading to an average of $82/bbl,
Q1 2022 97.90 83.21
strengthened by easing of stringent COVID-19 measures and by
Q2 2022 111.98 83.85
the Chinese National People’s Congress declaring a target of
Q3 2022 97.70 80.04
5% GDP growth for 2023. Furthermore, the year started with a
Q4 2022 88.63 77.95
Russian crude oil partial embargo from the West and a cap price
on Russian crude oil of $60/bbl. Oil prices increased further after
Q1 2023 82.10 89.92
EU and G7 countries agreed on a deal to cap Russian oil
Q2 2023 77.73 88.57
products at $100/bbl. In response, Russia announced that it
Q3 2023 85.92 85.69
would reduce the oil production.
Q4 2023 82.85 76.85
Towards the end of the first quarter of 2023, Brent crude oil
prices plummeted down to $73/bbl due to economic turmoil as a CO2
result of banking failures at Silicon Valley Bank and Signature The integrated steel process involves carbon reduction which
Bank in the U.S., and consequent fallout of Europe-based Credit leads to CO2 emissions, which distinguishes integrated steel
Suisse Group ending the first quarter of 2023 at an average of producers from mini-mills and many other industries where CO2
$82.10/bbl. During the second quarter of 2023, OPEC generation is primarily linked to energy use. Launched in 2005,
announced production cuts which supported markets and prices the EU-ETS is currently in its fourth phase, stretching from
reached above $80/bbl which were then quickly offset by January 2021 to December 2030. On June 22, 2022, the
several interest rate hikes by the U.S. Federal Reserve and a European Parliament agreed on its position regarding the EU-
potential debt default in the U.S. impacting oil prices by lowering ETS reform (main elements: 2030 emission reduction target,
them to the $75/bbl range. Brent crude oil prices averaged CBAM and end of free allocation). On April 25, 2023, the EU
$77.73/bbl during the second quarter of 2023. adopted five pieces of legislation as part of the “Fit for 55”
package, including a revision of the ETS Directive, a revision of
In the third quarter of 2023, Brent crude oil prices experienced a the ETS Aviation Directive, an amendment of the monitoring,
significant increase from $75/bbl in the beginning of July to $95/ reporting, and verification shipping regulation, the adoption of a
bbl at the end of September 2023, ending the third quarter of regulation establishing a Social Climate Fund and the adoption
2023 at an average of $85.92/bbl. One of the main driver for of a regulation establishing a carbon border adjustment
such an increase was production cuts by Saudi Arabia and mechanism (“CBAM”). The CBAM Regulation entered into force
Russia which led to anticipated supply constraints and potential on May 17, 2023 and the other regulations entered into force on
supply shortages. June 5, 2023. ArcelorMittal will likely incur additional costs in
future periods to acquire emissions allowances beginning in
In the fourth quarter of 2023, Brent crude oil prices dropped 2026 due to the planned phase-out of the free allocation of CO2
from $91/bbl in the beginning of October to $77/bbl at the end of emissions as from such date. ArcelorMittal targets a 35% and
December 2023 ending the fourth quarter with an $82.85/bbl 25% reduction in emissions (scope 1 and 2) by 2030 in Europe
average. China’s economic recovery remained below and Group-wide, respectively, and has plans to become carbon
expectations and the U.S. Central Bank’s hawkish stance over neutral by 2050. ArcelorMittal Europe is investing in two routes
monetary policy, reduced global oil demand expectations and to carbon neutrality, Smart Carbon and DRI-based route). See
drove the prices down. Brent crude oil price averaged at $82.15/ also "Business Overview—Sustainable Development—Climate
bbl in 2023, a decrease of $16.9/bbl compared to the previous change and decarbonization" and "Business Overview—
year which averaged at $99.05/bbl. Government Regulations—Environmental laws and regulations".

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On January 1, 2021, Phase 4 of the EU-ETS started, which natural gas prices which resulted in power generation structure
delayed the hand-out of free allocation. At the same time the UK switching from coal to gas power plants (due to weak power
left the scheme and set up its own, with trading starting in May. demand amid mild temperatures) and weak CO2 demand from
The EU Commission proposed its "Fit for 55" package and industry. The average price for one tonne of CO2 emitted in 2023
hence various changes to the EU-ETS to reduce future supply increased by 4.9% compared to the previous year.
and drive decarbonization. Those events led to uncertainty and
hectic trading behavior. Exacerbated by the economic recovery, Because the integrated steel process leads to substantial CO2
the CO2 price went on a sharp rally. The market started the year emissions, costs related to European Union Allowance
below €35/tCO2e (tons of carbon dioxide (CO2) equivalent) and Certificates ("EUA") and the fluctuations in EUA prices can
ended above €80/tCO2e, while the average carbon price significantly affect the Company’s costs of production. The
throughout 2021 was €68/tCO2e. The highest point of the year Company recognized a CO2 emission obligation provision of
was on December 8, 2021 when carbon prices broke the €90/ $29 million at December 31, 2023 with respect to its shortfall.
tCO2e mark. See note 9.1 to the consolidated financial statements. The
Company also uses derivative financial instruments to manage
During the first quarter of 2022, the price for carbon continued its exposure to fluctuations in prices of emission rights
its upward trend trading at a new all-time high of €98.5/tCO2e on allowances. As of December 31, 2023, the Company had a net
February 8, 2022. However, the Russian invasion of Ukraine notional position of $164 million with a net positive fair value of
lead to a price drop of 42% in just 5 days and left the market $18 million. See note 6.3 to the consolidated financial
trading at a 5-month low of €55/tCO2e. In the following weeks, statements for further information.
the CO2 price regained much of its losses and climbed back up
to above €80/tCO2e by the end of April 2022. During May and Natural gas - Europe
June, CO2 traded directionless between €80-€90/tCO2e, only In 2021, TTF (the price for natural gas, which is traded on a
briefly breaching the range on either side. Fundamentally, the virtual trading platform located in the Netherlands) spot price
market was stuck between recession fears and bullish policy (the price for natural gas to be delivered the next day) continued
changes which may restrict supply in the future and further push its upward trend, which started in the second half of 2020. The
toward energy transition. In August, a month known for its low low point of slightly below €16 per Megawatt hour ("€/MWh")
auction volume and thin liquidity, the price for carbon was was reached at the end of February. While the high point was hit
particularly volatile as CO2 broke the range in both directions just before Christmas (€182/MWh). This marked a more than
and made a push towards €100/tCO2e. However, it started to 1000% increase in price, amid the need to refill historical low
decline in September 2022 (dropping more than €30/tCO2e) storages, the battle for liquified natural gas ("LNG") with Asia,
amid tensions on the gas market and a bleak economic outlook. poor Russian piped supply into Northern Europe, and tension
This outlook started to improve in October 2022 and with it the around the controversial Nord Stream 2 pipeline. The average
price of CO2, finishing the year on a strong note of around €90/ price for TTF in 2021 was €45.9/MWh.
tCO2e. The average price for one tonne of CO2 emitted in 2022
While the first half of 2021 averaged €21.8/MWh, it was only a
increased by more than 50% compared to the previous year.
fifth of the first half of 2022's average at €96.8/MWh.
During the first quarter of 2023, the price for carbon increased
During January 2022 and until February 24, 2022, the TTF Spot
from €80/tCO2e levels to all-time high levels above €100/tCO2e
Price traded between €65-€100/MWh without clear direction.
on February 21, 2023, primarily driven by compliance buying
The invasion of Ukraine immediately provoked a price reaction
and expectations for cooler temperatures. In the second quarter
as Europe feared for its gas supply and at the same time, the
of 2023, weaker natural gas prices forced coal power plants out
German government decided not to go ahead with the Russian-
of the European power mix and declining demand pushed
backed Nord Stream 2 project. The spot price surged on March
carbon prices down. From April to May 2023, carbon prices
7, 2022 to almost €214/MWh, only to plummet back down to
dropped from €95/tCO2e levels to below €80/tCO2e. During
below €100/MWh one week later. Until mid-June 2022, TTF spot
June 2023, carbon prices saw a rally on the back of a market
prices traded between €80-€120/MWh. When the Nord Stream
squeeze and technical buying, and prices recovered back to
1 pipeline project (feeding Germany with Russian gas) was
€95/tCO2e levels in June 2023. The market ended the second
reduced to 40% capacity ahead of the yearly maintenance in
quarter of 2023 below €90/tCO2e.
July 2022, and later reduced to 20%, prices started to climb
Carbon prices followed a decreasing trend during the third and again, and overall market tensions grew around gas supplies,
fourth quarters of 2023. In the third quarter of 2023, carbon particularly in August 2022, after Russia announced a 3-day
prices dropped to €82/tCO2e and in the fourth quarter of 2023 maintenance where the pipeline would be completely shut off.
dropped further to €80/tCO2e. In the second half of the 2023 Market fears were realized when it was announced that the
lower carbon prices were mainly driven by the decreasing Nord Stream 1 pipeline would not come back online in 2022,
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leading to a price surge up to €313/MWh on August 26, 2022, of 2023 due to the reason discussed above. The European gas
marking a new historical maximum for the TTF Spot Price. prices averaged at €33/MWh in the third quarter of 2023.
Traders and politicians (who were still working on price capping
measures) across Europe again were afraid of not being able to In October 2023, the Israel-Hamas conflict raised uncertainties
fill up storage and a potential supply crunch for winter. However, over Israeli production and its ability to export gas, particularly to
continuous strong LNG arrivals and pipeline flows contributed to Egypt which could have reduced LNG flows from Egypt to
market confidence and price declines. The steadfast Europe. Market’s reaction was severe; the TTF spot price
commitment allowed the filling of European storage ahead of spiked from €29/MWh to €54/MWh within a week. Later in the
their October (80% fullness) and November (90% fullness) fourth quarter of 2023, geopolitical uncertainties receded, and
targets. Storage was 83% filled by the end of 2022, considerably gas markets returned to the fundamental drivers where prices
above the historical average primarily due to mild temperatures followed a decreasing trend with healthy LNG supply, reduced
and oversupply of the European gas network. residential demand amid mild temperatures and high storage
levels. At the end of the fourth quarter of 2023, the TTF spot
The mild weather continued throughout the first quarter of 2023, price dropped to €32/MWh levels and average of the fourth
and storage levels for natural gas remained healthy. Additionally, quarter of 2023 was €41.01/MWh. Overall, in 2023, natural gas
Freeport LNG, an important LNG export facility in the U.S. and prices reduced to €40.8/MWh, a 66.4% decrease in comparison
key provider to Europe strategically located in the U.S. Gulf to previous year.
Coast, came back online in the first quarter of 2023 after a fire in
June 2022, further easing the supply-demand balance. Gas Natural gas - United States
prices at this time (between February and March 2023) were in In North America, natural gas prices (see table below) trade
the €40-50/MWh range. The European Market Correction independently of oil prices and are set by spot and future
Mechanism came into force on February 15, 2023, establishing contracts, traded on the NYMEX exchange or over-the-counter.
a gas price cap at €180/MWh on the front-month TTF should
Henry Hub (the main gas hub in Louisiana) experienced a less
some conditions be met, although it seems unlikely that these
severe price increase than other commodities in 2021, from
levels will be seen again. In early March 2023, French LNG
averaging $2.7 per million British thermal units ("MMBtu") in the
regasification was halted amid strikes in France on pension
first quarter of 2021 up to averaging $4.8/MMBtu in the fourth
reform. Despite the strikes, prices slid dropped to around €40/
quarter of 2021. In between, prices increased to $6.3/MMBtu in
MWh due to mild weather as well as strong storage levels.
early October in anticipation of colder weather and the global
Storage levels were at 56% at the end of March 2023 (which is
thirst for U.S. LNG exports. As more liquefaction trains went
30% higher as compared to the end of March 2022), helping to
online, the global gas market had a stronger impact on the U.S.
start off the filling season in a favorable situation.
natural gas price.
During the second quarter of 2023, persistent weak demand,
On January 27, 2022, Henry Hub reached an all-time high of
healthy supply, and head start in storage levels weighed down
$7.4/MMBtu due to the Texas Big Freeze, a wintry blast which
on European gas prices (despite heavy maintenance from
hit Texas particularly hard, caused power failure and disrupted
Norwegian supply starting in May 2023). Prices slumped to a 7-
gas production as well as LNG exports. The invasion of Ukraine
month low of €23/MWh in early June 2023. The low-price streak
did not have an immediate impact on U.S. gas prices but over
was interrupted by Norwegian gas supply outages extensions
the months Henry Hub increased from $3.9/MMBtu mid-
lifting prices back to €35-40/MWh. Nevertheless, the first half of
February 2022 to $9.6/MMBtu by mid-June 2022. Continuous
2023 ended with healthy storage levels at 77%.
supply side issues, low domestic storage and strong LNG export
In the second half of 2023 European gas prices experienced a demand were the main drivers for this sharp increase. A fire at
volatile period. Extended maintenance at Norway's Nyhamna the Freeport LNG facility mid-June and a resulting drop in LNG
gas processing facility negatively affected the European gas export demand led to a price drop to below $5.5/MMBtu by the
market. In addition, reliability issues in Norway, along with the end of June 2022. However, the U.S. reacted to supply needs
prospect of increased demand for LNG in Asia, especially from Europe amid Russian gas halts and reached a new all-time
China, led to a strained market balance at the start of the third high of $9.9/MMbtu on August 22, 2022. In the third quarter of
quarter of 2023. Later in the third quarter of 2023, EU gas 2022, prices dropped due to high production which allowed high
storage facilities reached to 93% levels, a notable increase storage levels before the winter heating started. With increased
compared to previous year (83% at the end of September European LNG and domestic natural gas demand, Henry Hub
2022). This surge in storage levels led to apprehensions price averaged $6.4/MMbtu in 2022, the highest price average
regarding a possible oversupply as the quarter progressed. In since the financial crisis in 2008.
the third quarter of 2023, European gas prices increased to €43/
MWh and later declined to €37/MWh by the end of third quarter
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Freeport LNG was supposed to partially restart in mid- Similar to its European counterpart, the JKM traded range-
December 2022 but was delayed to January 2023 due to the bound until the Russian government launched its invasion of
pending regulatory approvals. Despite the plant not coming back Ukraine. On March 7, 2022, the JKM reached an all-time high of
online in 2022, the U.S. established itself as a key supplier to $52/MMBtu. Throughout the first half of 2022, the JKM showed
Europe amid the energy crisis. a great correlation to TTF, but kept trading at a discount, as
Asian buyers were still well stocked and in general more linked
A significant reversal was seen during the first quarter of 2023, to long-term contracts. On August 25, 2022, the JKM reached a
when warmer than average temperatures in January and new historical maximum of $70/MMbtu, striving to secure gas for
February 2023 led to reduced consumption in the residential the winter period. Many price-sensitive Asian markets could not
and commercial sectors, which was the lowest natural gas compete with these high prices and switched to oil and domestic
consumption in the U.S. over the prior seven years during the gas consumption. Meanwhile, China, the largest spot buyer, was
same period. Mild temperatures also led to lower withdrawals of struggling with re-emerging COVID-19 pandemic outbreaks and
natural gas from underground storage. Prices increased to $2.8/ the implementation of zero-Covid measures largely muted
MMBtu at the end of February 2023 after operations at Freeport Chinese demand for "LNG", freeing up spot cargoes for Europe
LNG liquefaction plant restarted (following the fire in June 2022). to lock. Prices during the fourth quarter of 2022 followed
However, prices dropped again throughout the month of March Europe, which at the time was benefiting from mild weather
2023. The first quarter of 2023 ended with average natural gas during the early winter months, delaying the heating season and
prices at $2.7/MMBtu. easing prices further. The JKM averaged $31.2/MMbtu during
the fourth quarter. Overall, it was a year of great volatility in
During the second and the third quarters of 2023, natural gas
prices and the annual JKM average was $34/MMbtu in 2022,
prices followed an increasing trend, averaging $2.3/MMBtu and
90% higher than in 2021.
$2.7/MMBtu respectively. Also, 2023 filling season (from April
2023 to October 2023) started with relatively high storage During the first quarter of 2023, the JKM front-month contract
volumes. Natural gas injections into storage during summer corrected down from high prices seen in 2022, despite the
exceeded the five-year average. In the third quarter of 2023, easing of COVID-19 measures by the Chinese government. In
extreme temperatures across the U.S. with heatwave in Texas the first quarter of 2023, the JKM traded at an average of $18.1/
and the Gulf Coast, and cooler temperatures than usual in the MMbtu, 41% lower as compared to the first quarter of 2022.
Northeast maintained strong gas demand despite an
unprecedentedly high supply. Despite lower natural gas prices, Prices continued their downtrend led by healthy supply-demand
production remained at high levels in 2023. The gas (supply- balance in global markets, particularly in Europe as well as slow
demand) balance, initially indicated an oversupply, which shifted demand recovery from China. The average spot price for the
towards a bullish trend with the summer heat. In 2023, U.S. second quarter of 2023, stood at $11.1/MMBtu, representing a
natural gas inventories at the start of the winter heating season 59% price discount to the same quarter of 2022, a level close to
were at their highest level since 2020. In the fourth quarter of the estimated price for oil-indexed Asian LNG contracts. This
2023, natural gas prices reached $3.6/MMBtu and then declined prompted South Asian and Southeast Asian countries to return
to $2.5/MMBtu at the end of the year. Overall, in 2023, Henry to the spot market. However, demand in the region remained
Hub average natural gas prices fell to $2.7/MMBtu, a 59.2% relatively muted particularly due to slow Chinese industrial
decrease in comparison to previous year. revival and high LNG inventories across North Asia.

Natural gas - Asia In the third and fourth quarter of 2023, two major price spikes
Driven by cold weather in Asia, the Japan Korea Marker ("JKM") occurred in Asian markets. In August and October 2023,
- the LNG benchmark price assessment for spot physical workers at Australia’s biggest LNG terminals (a major source for
cargoes delivered ex-ship into Japan, South Korea, China and Asian LNG demand) voted for a strike action, threatened a total
Taiwan, front-month contract exploded in the first few weeks of of 54 bcm/y (billion cubic meters per year) LNG supply capacity.
2021. By mid-January, it traded at $20/MMBtu, a new record. In Such a possible supply disturbance created a panic
February and March, the market had cooled down again and environment in the markets and in one day the JKM price
was trading between $7 - $9/MMBtu. However, the sharp rally jumped from $11.2/MMBtu to $14.3/MMBtu on August 16, 2023,
started in mid-April and lasted throughout the entire year, not and from $14.4/MMBtu to $17.7/MMBtu on October 16, 2023.
giving the market time to breathe. Prices reached almost $50/ Overall, weak LNG demand in Asia and lack of a major
MMBtu just before Christmas, breaking the record set in the first competition with Europe over spot LNG cargos, led prices to fall
quarter of 2021. The price increase was fueled by the global in the fourth quarter of 2023. In 2023 JKM average prices
need to refill depleted gas storage and a fierce battle between slumped to $14.4/MMBtu, a 57.7% decrease in comparison to
Europe and Asia to attract cargoes. previous year.

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The following table shows quarterly average spot prices of Similar to historical trends, in 2023 power prices mainly followed
natural gas for the past three years: the same trend as natural gas prices. Marginal cost of power
Natural gas EEX PEGAS Reuters Reuters generation from gas power plants became the key indicator for
Period TTF Henry Hub JKM electricity prices. There were four key trends in 2023: nuclear
Spot average Spot average Spot average phase out of Germany, high nuclear power availability and high
price price price
€ per MWh $ per MMBtu $ per MMBtu hydro levels in France and overall low demand for electricity due
to reduced industrial power demand and mild temperatures in
Q1 2021 18.60 2.72 8.85
the first and fourth quarters of 2023.
Q2 2021 25.06 2.98 9.71
Q3 2021 47.79 4.32 17.80 The following table shows quarterly average spot prices of
Q4 2021 92.14 4.84 34.95 electricity in Germany, France and Belgium for the past three
years:
Q1 2022 95.10 4.59 30.83
Electricity
Q2 2022 98.55 7.50 27.18
Q3 2022 198.19 7.95 46.84 Source: EEX Germany France Belgium
Baseload spot Baseload spot Baseload spot
Q4 2022 94.27 6.09 31.23 average price average price average price
€ per MWh € per MWh € per MWh
Q1 2023 53.31 2.74 18.07 Q1 2021 49.57 53.02 50.94
Q2 2023 35.29 2.33 11.08 Q2 2021 60.27 63.85 62.28
Q3 2023 33.49 2.66 12.59
Q3 2021 97.15 96.42 97.28
Q4 2023 41.01 2.92 15.82
Q4 2021 178.97 221.78 204.34
Electricity - Europe
Due to the regional nature of electricity markets, prices follow Q1 2022 184.62 232.19 208.02
mainly local drivers (i.e., energy mix of the respective country, Q2 2022 186.98 225.99 193.92
power generation from renewables, country specific energy Q3 2022 375.75 429.73 372.27
policies, etc.). Q4 2022 192.84 214.15 202.62

In 2021, electricity prices continued to increase quarterly in line

Q1 2023 115.80 130.33 127.40
with the increasing fuel prices and renewable power could not
provide the needed relief. In the second half of 2021, easing Q2 2023 92.29 91.58 92.81
COVID-19 pandemic restrictions and reopening economies Q3 2023 90.78 85.71 87.14
increased power demand and global fuel prices. The Q4 2023 82.27 81.22 82.36
combination of high natural gas prices and increasing power
demand in the fourth quarter of 2021 led to the highest prices Ocean freight
ever recorded up until that time. Throughout 2021, the dry bulk market remained firm but was
extremely volatile, particularly in the second half of the year with
In the first half of 2022, electricity prices marginally increased as the third quarter being the strongest quarter. The Baltic Dry
compared to levels during the fourth quarter of 2021 but were Index (“BDI”) average was at 2,943 points in 2021. The
more than three times higher than in the first half of 2021. Rising Capesize and Panamax index reached a $33,333/day and
fuel prices (i.e., thermal coal and natural gas) as well as $26,898/day average in 2021, respectively. Supramax rates hit
elevated CO2 prices lifted the marginal cost of hard coal and multiyear highs in 2021, with the Baltic TC average peaking at
natural gas power plants, which provides the floor and ceiling for $39,860/day in October from $11,305/day at the start of 2021
the power market. Power output from renewables was not (+253%), before ending at $25,188/day (+$13,883 /day +123%
particularly strong for the first half of 2022, while hydro as compared to the start of 2021). The weighted average
reservoirs took a hit amid a lack of water. In the second half of Supramax rate was $26,767/day in 2021.
2022, low nuclear power availability in France put further stress
on the system. In 2022, electricity prices reached new highs Fleet growth across all segments was relatively moderate in
amid high natural gas prices. The third quarter of 2022 2021, with an increase of 3.6% with the average dry bulk
experienced the highest prices ever recorded; four to five times demolition age climbing to 28.55 years, naturally driven by far
higher than 2021. In the last quarter of 2022, electricity prices stronger market conditions.
declined with decreasing natural gas prices and lower power
While 2021 was very much a year of recovery, with the dry bulk
demand amid mild weather conditions in Northwest Europe.
market getting back on track after the COVID-19 pandemic, the
year 2022 was largely impacted by the conflict in Ukraine and
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the associated challenges that followed. The BDI average was Adding to the complexity of the global market, the conflict in
at 1,934 points in 2022 compared to 2,943 points in 2021, Gaza that began in October 2023 has prompted a violent
highlighting the general response to the forced change in trading response from Houthi Rebels targeting commercial shipping in
patterns which the conflict and subsequent sanctions created. the red sea off the coast of Yemen. This has dramatically
The Capesize index decreased by 51.4% year-on-year to an increased insurance premiums for vessels passing via the Suez
average of $16,177/day in 2022 compared to $33,333/day in canal, prompting many owners to re-route their vessels via
2021. The Panamax index decreased by 22.9% to an average Cape of Good Hope. Meanwhile, 2023 also saw water levels in
of $20,736/day as compared to $26,898/day in 2021. In 2022, the Panama Canal draw down to historic lows due to
the Supramax index was in steady decline, averaging $22,152/ environmental factors, resulting in very limited throughput and
day as compared to $26,767/day, a 17.2% decline. an auction system where at peak owners paid $1.3 million for a
slot. This resulted in a sharp reduction of vessels going via
Among the changes resulting from the Ukraine conflict, a Panama, with traffic routing via Magellan instead. Both factors
reshuffling of some established trade routes involving Russia led above have had the effect of reducing available supply and
to an increase in tonne mileage which provided some support to maintaining relatively firm rates into 2024.
the market, particularly as alternative sources for Ukrainian
grain was sought in the early days of the conflict. An easing of The new ETS regulations that entered into force are also
the high congestion levels seen at Chinese ports also freed up a starting to have an impact as average vessel speeds dropped,
significant amount of capacity putting negative pressure on the to comply with the stricter environmental requirements and to
market. limit costs. Furthermore, while there is a robust growth in dry
bulk trade, particularly in grains and minor bulks, challenges in
Overall bulk carrier contracting in 2022 was 51.2% lower than in the steel and coal sectors influence the overall trade
2021 by number of vessels and 53.63% lower in terms of environment.
deadweight, suggesting lower appetite for risk among investors
as the global financial market faces inflationary pressures and Sources: Baltic Index, Clarksons Platou
increased uncertainty ahead.
Impact of exchange rate movements
While 2023 started off with a deeper than usual seasonal slump Because a substantial portion of ArcelorMittal’s assets, liabilities,
in dry cargo freight market, there was positive year-on-year data sales and earnings are denominated in currencies other than
coming out of China in the first quarter, initially signalling the U.S. dollar (its reporting currency), ArcelorMittal has
economic growth. Though encouraging in the near-term, the exposure to fluctuations in the values of these currencies
effect of positive trade data proved not to be particularly long relative to the U.S. dollar. These currency fluctuations,
lasting as data points suggested a loss of momentum in, among especially the fluctuation of the U.S. dollar relative to the euro,
other sectors, China’s property market. While all sectors saw a as well as fluctuations in the currencies of the other countries in
rapid uptick in rates during end-February 2023 to mid-March which ArcelorMittal has significant operations and sales, can
2023, the Supramax and Panamax segments saw relatively have a material impact on its results of operations. For example,
steady declines in rates after that. Capesize rates were far more ArcelorMittal’s subsidiaries may purchase raw materials,
volatile, but fluctuated around the $15,000/day mark on a Time including iron ore and coking coal, in U.S. dollars, but may sell
Charter Equivalent basis during first half of 2023. However, the finished steel products in other currencies. Consequently, an
fourth quarter of 2023 saw a dramatic increase in freight rates, appreciation of the U.S. dollar will increase the cost of raw
particularly in the Capesize market. This was culmination of a materials; thereby having a negative impact on the Company’s
multitude of factors, amounting to somewhat of a perfect storm, operating margins, unless the Company is able to pass along
with increased demand coming out of China, coinciding with the higher cost in the form of higher selling prices. In order to
poor weather, and positional tonnage deficits relative to demand minimize its currency exposure, ArcelorMittal enters into
in both the Atlantic and Pacific basins. hedging transactions to lock-in a set exchange rate, as per its
risk management policies.
The BDI average was at 1,378 points in 2023 compared to
1,934 points in 2022. The Capesize index increased by 1.31% Since April 1, 2018, the Company has designated a portfolio of
year-on-year to an average of $16,389/day in 2023 compared to euro denominated debt (€3.6 billion as of December 31, 2023)
$16,177/day in 2022. The Panamax index decreased by 38.01% as a hedge of certain euro denominated investments (€8.6
to an average of $12,854/day as compared to $20,736/day in billion as of December 31, 2023) in order to mitigate the foreign
2022. In 2023, the Supramax index fell to an average of currency risk arising from certain euro denominated subsidiaries
$11,240/day as compared to $22,152/day in 2022, a 49.26% net assets. The risk arises from the fluctuation in spot exchange
decline. rates between the euro and U.S. dollar, which causes the
amount of the net investments to vary. See also note 6.3 to the

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consolidated financial statements. As a result of the hedge In 2023, Brazilian real appreciated against the U.S. dollar, from
designation, foreign exchange gains and losses related to the 5.22 on December 31, 2022 to 4.84 on December 31, 2023, due
portfolio of euro denominated debt are recognized in other to the relative high interest rate differential.
comprehensive income.
The Argentinian peso depreciated sharply against the U.S.
As of December 31, 2023, the Company is mainly subject to dollar from 177.16 on December 31, 2022 to 808.45 on
foreign exchange exposure relating to the euro, Brazilian real, December 31, 2023 in connection with poor economic
Canadian dollar, Indian rupee, South African rand, Mexican conditions in the country and hyperinflation.
peso, Polish zloty, Argentinian peso and Ukrainian hryvnia
against the U.S. dollar resulting from its payables, receivables or Critical accounting policies and use of judgments and estimates
foreign operations denominated in such currencies. Management’s discussion and analysis of ArcelorMittal’s
operational results and financial condition is based on
In 2023, the euro appreciated against the U.S. dollar from ArcelorMittal’s consolidated financial statements, which have
1.0666 on December 31, 2022 to 1.1050 on December 31, been prepared in accordance with IFRS. The preparation of
2023. This appreciation is largely explained by the decrease in financial statements in conformity with IFRS recognition and
interest rate differential, with markets anticipating the end of measurement principles and, in particular, making the critical
hiking cycles by central banks and the start of rate cuts during accounting judgments highlighted below require the use of
2024, expected to occur in the U.S. before the European Union. estimates and assumptions that affect the reported amounts of
assets, liabilities, revenues and expenses. Management reviews
The Polish zloty appreciated against the U.S dollar throughout its estimates on an ongoing basis using currently available
2023 from 4.39 on December 31, 2022 to 3.93 on December 31, information. Changes in facts and circumstances or obtaining
2023, benefiting from a high interest rate differential and new information or more experience may result in revised
relatively better macro-economic conditions. estimates, and actual results could differ from those estimates.

In 2023, the Ukrainian hryvnia value depreciated against the An overview of ArcelorMittal's critical accounting policies under
U.S. dollar from 36.5686 on December 31, 2022, to 37.9824 on which significant judgments, estimates and assumptions are
December 31, 2023. Since October 2023 the National Bank of made may be found in note 1.3 to the consolidated financial
Ukraine ("NBU") has abandoned the fixed official UAH rate statements.
against U.S. dollar at 36.5686 (implemented since July 2022
due to geopolitical situation with Russia) and switched to a Export sales
controlled exchange rate. To do so, the NBU is being very active Because ArcelorMittal’s customers are mainly based outside its
on the foreign exchange market, using its foreign currency home country of Luxembourg, all of its sales are considered to
reserves to manage the value of its currency. be export sales. Annual sales to a single individual customer did
not exceed 5% of sales in any of the periods presented.
The Indian rupee depreciated against the U.S. dollar from 82.67
on December 31, 2022 to 83.17 on December 31, 2023 due to Legal proceedings
interest rate differential with the United States, inflow of capital ArcelorMittal is currently and may in the future be involved in
and India’s high dependency on energy imports in a context of litigation, arbitration or other legal proceedings. Provisions
surging prices. related to legal and arbitration proceedings are recorded in
accordance with the accounting policies described in note 9.1 to
The South African rand depreciated against the U.S. dollar from ArcelorMittal’s consolidated financial statements. Please refer to
16.96 on December 31, 2022 to 18.55 on December 31, 2023 in note 9.3 for a description of contingencies, including legal
the context of high inflation and energy supply disruptions in the proceedings.
country.
Operating results
The Canadian dollar appreciated in 2023 compared to 2022
against the U.S. dollar, from 1.35 on December 31, 2022 to 1.32 The following discussion and analysis should be read in
on December 31, 2023 mainly as a result of the yield differential conjunction with ArcelorMittal’s consolidated financial
between U.S. and Canada. statements included in this annual report.

The Mexican peso appreciated in 2023 against the U.S. dollar ArcelorMittal reports its operations in five reportable segments:
from 19.55 on December 31, 2022 to 16.94 on December 31, NAFTA, Brazil, Europe, ACIS and Mining. The key performance
2023 due to high real interest rates in Mexico and a resilient indicators that ArcelorMittal’s management uses to analyze
U.S. economy which leads to high remittances and provides a operations are sales, average steel selling prices, crude steel
favorable external balance to support the currency. production, steel shipments, iron ore production and operating

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income. Management’s analysis of liquidity and capital modified the structure of its segment information in order to
resources is driven by net cash flow from operations less capital reflect changes in its approach to managing its operations and
expenditures. segment disclosures have been recast to reflect this new
segmentation. Only the seaborne-oriented operations of AMMC
As from April 1, 2021, ArcelorMittal implemented changes to its and AML are reported within the Mining segment. The results of
organizational structure whereby primary responsibility for all other mines are henceforth accounted for within the steel
captive mining operations whose output is mainly consumed by segment that it primarily supplies.
their respective steel segments has been transferred to such
segments. The Mining segment retains primary responsibility for As from January 1, 2024, ArcelorMittal implemented changes to
the operation of the seaborne oriented operations at AMMC and its organizational structure; see "Business overview—
AML and continues to provide technical support to all mining Organizational structure".
operations within the Company. Accordingly, the Company

Years ended December 31, 2023, 2022 and 2021

Sales, operating income, crude steel production, steel shipments, average steel selling prices and mining production
The following tables provide a summary of ArcelorMittal’s performance by reportable segment for the years ended December 31, 2023,
2022 and 2021:
Sales for the year ended December 31,1 Operating income (loss) for the year ended December 31,2
2023 2022 2021 2023 2022 2021
Segment (in $ millions) (in $ millions) (in $ millions) (in $ millions) (in $ millions) (in $ millions)
NAFTA 12,978 13,774 12,530 1,917 2,818 2,800
Brazil 13,163 13,732 12,856 1,461 2,775 3,798
Europe 38,305 47,263 43,334 1,104 4,292 5,672
ACIS 5,422 6,368 9,854 (3,021) (930) 2,705
Mining 3,077 3,396 4,045 1,144 1,483 2,371
Others and eliminations (4,670) (4,689) (6,048) (265) (166) (370)
Total 68,275 79,844 76,571 2,340 10,272 16,976

1. Amounts are prior to inter-segment eliminations (except for total) and sales include non-steel sales.
2. Others and eliminations to segment operating income reflects certain adjustments made to operating income of the segments to reflect corporate costs, income from non-
steel operations (e.g. energy, logistics and shipping services) and the elimination of stock margins between segments. See table below.

Others and eliminations - operating (loss) income Year ended December 31,
2023 2022 2021
(in $ millions) (in $ millions) (in $ millions)
Corporate and shared services 1 (296) (234) (201)
Financial activities (24) (19) (21)
Shipping and logistics 5 12 15
Intragroup stock margin eliminations 91 110 (123)
Depreciation and impairment (42) (35) (40)
Total adjustments to segment operating income and other (266) (166) (370)

1. Includes primarily staff and other holding costs and results from shared service activities.

Shipments and average steel selling price

ArcelorMittal steel shipments remained relatively stable at 55.6 outages during the year in Europe, offset in part by improved
million tonnes for the year ended December 31, 2023 as NAFTA volumes, and declined by 4.5% as compared to 2022.
compared to steel shipments of 55.9 million tonnes for the year
Steel shipments decreased 3.6% to 28.7 million tonnes in the
ended December 31, 2022.
first half of 2023 as compared to 29.7 million tonnes for the first
On a comparable basis, excluding the shipments from half of 2022. Excluding the shipments of ArcelorMittal Pecém
ArcelorMittal Pecém (consolidated from March 9, 2023) and (consolidated from March 9, 2023), steel shipments in the first
ArcelorMittal Temirtau (sold on December 7, 2023), steel half of 2023 declined by 6.8% as compared to the first half of
shipments in 2023 were impacted by production cuts and 2022 (impacted by outages in Europe and lower demand in

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Brazil, including exports). Steel shipments increased 2.9% to prices increased by 37.7% in the first half of 2022 as compared
27.0 million tonnes in the second half of 2023 compared to 26.2 to the first half of 2021 and decreased by 1.9% in the second
million tonnes in the second half of 2022, mainly due to the half of 2022 in line with international prices, as compared to the
shipments of ArcelorMittal Pecém and improved shipments from second half of 2021.
NAFTA segment. Excluding the shipments from ArcelorMittal
Pecém, steel shipments in the second half of 2023 declined by Sales
2.9% as compared to the second half of 2022 (mainly impacted ArcelorMittal had sales of $68.3 billion for the year ended
by the lower demand in Europe). December 31, 2023, representing a 14.5% decrease from sales
of $79.8 billion for the year ended December 31, 2022, primarily
ArcelorMittal had steel shipments of 55.9 million tonnes for the due to 13.5% lower average steel selling prices. In the first half
year ended December 31, 2022 as compared to steel shipments of 2023, sales were $37.1 billion, decreasing from $44.0 billion
of 62.9 million tonnes for the year ended December 31, 2021, in the first half of 2022, primarily due to lower steel shipments
representing a 11.2% decrease. On a comparable basis, and 15% lower average steel selling prices. In the second half of
excluding the shipments of ArcelorMittal Italia, deconsolidated 2023, sales of $31.2 billion represented a 13.1% decrease as
as from April 14, 2021 and excluding the shipments of Ukraine compared to sales of $35.9 billion in the second half of 2022,
(in both periods), steel shipments decreased by 4.5%. primarily driven by an 11.8% decrease in average steel selling
prices, a negative currency translation impact offset in part by
While NAFTA shipments remained stable, the following 2.9% higher steel shipments.
segments experienced year on year shipment declines in 2022:
Europe 9.0% (6.2% on a comparable basis excluding shipments ArcelorMittal had sales of $79.8 billion for the year ended
of ArcelorMittal Italia), Brazil 1.5%, ACIS 38.4% (9.4% on a December 31, 2022, representing a 4.3% increase from sales of
comparable basis excluding shipments of Ukraine in both $76.6 billion for the year ended December 31, 2021, primarily
periods). due to 16.6% higher average steel selling prices partly offset by
11.2% lower steel shipments. In the first half of 2022, sales were
Steel shipments decreased 8.7% to 29.7 million tonnes in the $44.0 billion increasing from $35.5 billion in the first half of 2021,
first half of 2022 compared to 32.6 million tonnes for the first half primarily due to 37.7% higher average steel selling prices partly
of 2021. On a comparable basis excluding the impact of offset by 8.7% lower steel shipments, In the second half of
ArcelorMittal Italia (deconsolidated as from April 14, 2021), steel 2022, sales of $35.9 billion represented a 12.6% decrease as
shipments decreased by 5.8% in the first half of 2022 as compared to sales of $41.0 billion in the second half of 2021,
compared to the first half of 2021. The decrease in steel primarily driven by a 1.9% decrease in average steel selling
shipments was mainly due to the lower shipments in ACIS prices and 13.7% lower steel shipments.
segment (39.0% primarily due to the conflict between Russia
and Ukraine) and in NAFTA segment (3.7%). Steel shipments Cost of sales
decreased 13.7% to 26.2 million tonnes in the second half of Cost of sales consists primarily of purchases of raw materials
2022 compared to 30.3 million tonnes in the second half of necessary for steel-making (iron ore, coke and coking coal,
2021, due to the ongoing war in Ukraine and lower apparent scrap and alloys), energy, repair and maintenance costs, as well
demand driven by weaker macroeconomic conditions and as direct labor costs, depreciation and impairment. Cost of sales
significant destocking in all other regions. for the year ended December 31, 2023 was $63.5 billion as
compared to $67.3 billion for the year ended December 31,
Average steel selling prices decreased by 13.5% for the year 2022, mainly driven by lower coal and energy costs (see below
ended December 31, 2023 as compared to the year ended for more details). Cost of sales for the year ended December 31,
December 31, 2022 in line with international steel selling prices. 2023 included $1.5 billion foreign exchange translation losses
Average steel selling prices decreased by 14.7% in the first half and impairment charges of $0.9 billion in connection with the
of 2023, as compared to the first half of 2022, when prices sale of ArcelorMittal Temirtau, the Company's steel and mining
benefited from restocking demand following the outbreak of war operations in Kazakhstan, of which $0.7 billion impairment of
in Ukraine. Average steel selling prices decreased by 11.8% in property, plant and equipment and $0.2 billion impairment of
the second half of 2023, as compared to the second half of ACIS goodwill. Cost of sales for the year ended December 31,
2022, in line with international prices. 2023 also included $0.1 billion impairment of property, plant and
equipment of the Long operations of ArcelorMittal South Africa.
Average steel selling prices increased by 16.6% for the year
ended December 31, 2022 as compared to the year ended For the years ended December 31, 2023, 2022, and 2021, cost
December 31, 2021 in line with the sharp increase in of sales included the following energy costs:
international steel selling prices in the first half of 2022, following
the start of the Russia-Ukraine conflict: average steel selling

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percentage of sales increased for the year ended December 31,

in millions of USD 2023 2022 2021
2023 (3.5%) as compared to 2022 (2.8%) and 2021 (2.9%).
Electricity for production 3,129 4,360 3,289
Natural and other gases 1,887 3,326 2,242 Operating income
Other energy and utilities 1,799 1,902 1,323 ArcelorMittal’s operating income for the year ended December
Total 6,815 9,588 6,854 31, 2023 was $2.3 billion as compared to $10.3 billion for the
year ended December 31, 2022, primarily driven by negative
Energy costs represented 11%, 14% and 12% of cost of sales price-cost effect (predominantly on account of lower average
for the years ended December 31, 2023, 2022, and 2021, steel selling prices (13.5%) driving a decline in steel spreads
respectively. ArcelorMittal has taken cost mitigating actions with the pace of the decline in steel prices being greater than
including hedging a part of its future energy consumption (in the reduction in the raw material basket and energy costs.
accordance with the Group's commodity price hedging policy) Operating income for the year ended December 31, 2023
as well as operational savings. In the case of natural gas, the included a $2.4 billion charge relating to the disposal of
Company has taken several actions to minimize the ArcelorMittal Temirtau including $0.9 billion of impairment of
consumption of natural gas throughout its production process, property, plant and equipment and goodwill and $1.5 billion
including optimization of the reuse of blast furnace gases and cumulative foreign exchange translation losses (previously
coke oven battery gases, and enhancement of oxygen recognized in equity) recycled through the consolidated
enrichment combustion for reheating furnaces. statements of operations.

Cost of sales for the year ended December 31, 2022 was $67.3 ArcelorMittal’s operating income for the year ended December
billion as compared to $57.3 billion for the year ended 31, 2022 was $10.3 billion as compared to $17.0 billion for the
December 31, 2021, mainly driven by higher raw material and year ended December 31, 2021, primarily driven by a negative
energy costs offset in part by lower shipments. Cost of sales for price-cost effect, including in particular higher coal and energy
the year ended December 31, 2022 included a $1.0 billion costs, lower steel shipments, negative translation effect and the
impairment charge relating to ArcelorMittal Kryviy Rih’s property, impairment charge, inventory related charges, bargain purchase
plant and equipment and intangibles due to the significant gain and gain resulting from a litigation settlement, totaling $1.3
uncertainty about the evolution of the geopolitical context in billion.
Ukraine and the timing and ability for the Company to resume
operations to a normal level. NAFTA
Performance for the year
Apart from the impairment charge mentioned above, cost of ended December 31,
sales for the year ended December 31, 2022 also included $0.5 (in millions of USD unless
otherwise shown) 2023 2022 2021
billion of inventory related charges to reflect the net realizable
value of inventory with declining market prices in Europe, Sales 12,978 13,774 12,530
partially offset by a $0.1 billion bargain purchase gain on the Depreciation (535) (427) (325)
acquisition of ArcelorMittal Texas HBI and a $0.1 billion gain Operating income 1,917 2,818 2,800
following the settlement of a claim by ArcelorMittal for a breach Crude steel production
of a supply contract. (thousand tonnes) 8,727 8,271 8,487
Flat product shipments 8,220 7,121 6,879
Depreciation for the year ended December 31, 2023, was $2.7 Long product shipments 2,734 2,739 3,088
billion, slightly higher as compared to $2.6 billion for the year
Others and eliminations (390) (274) (381)
ended December 31, 2022 primarily due to the acquisition of
Total steel shipments
ArcelorMittal Texas HBI on June 30, 2022 and ArcelorMittal (thousand tonnes) * 10,564 9,586 9,586
Pecém on March 9, 2023. In 2022, depreciation for the year Average steel selling price
ended December 31, 2022 was $2.6 billion, slightly higher as (USD/tonne) 1,024 1,215 1,128
compared to $2.5 billion for the year ended December 31, 2021 * NAFTA steel shipments include slabs sourced by NAFTA from Group subsidiaries
(primarily from Brazil) and sold to the Calvert joint venture which are then
primarily driven by changes in useful lives estimates for certain eliminated on consolidation. These shipments, which vary between periods due
assets in Europe and Canada due to decarbonization projects. to slab sourcing mix and timing of vessels in a period, amounted to 1,660,000
tonnes, 1,173,000 tonnes and 1,152,000 tonnes in 2023, 2022 and 2021,
respectively.
Selling, general and administrative expenses
Selling, general and administrative expenses ("SG&A") were Crude steel production, steel shipments and average steel
$2.4 billion for the year ended December 31, 2023 as compared selling price
to $2.3 billion for the year ended December 31, 2022 and $2.3 Crude steel production for the NAFTA segment increased 5.5%
billion for the year ended December 31, 2021. SG&A as a to 8.7 million tonnes for the year ended December 31, 2023 as

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compared to 8.3 million tonnes for the year ended December as compared to the second half of 2022, in line with the trend in
31, 2022. Crude steel production increased 7.3% to 4.4 million market prices.
tonnes in the first half of 2023 as compared to 4.1 million tonnes
the first half of 2022, which was impacted by labor actions in Average steel selling prices in NAFTA segment increased 7.8%
Mexico and in Long Products Canada and maintenance in for the year ended December 31, 2022 as compared to the year
Canada. Crude steel production increased 3.8% to 4.3 million ended December 31, 2021. In the first half of 2022, average
tonnes in the second half of 2023 as compared to 4.1 million steel selling prices were 37.8% higher than in the first half of
tonnes in the second half of 2022, which was impacted by 2021, in line with the trend in market prices and the positive
planned maintenance. impact of automotive contract resets. Average steel selling
prices in the second half of 2022 were 16.3% lower as
Crude steel production for the NAFTA segment decreased 2.5% compared to the second half of 2021, in line with the trend in
to 8.3 million tonnes for the year ended December 31, 2022 as market prices.
compared to 8.5 million tonnes for the year ended December
31, 2021. Crude steel production declined 7.3% in the first half Sales
of 2022 as compared to the first half of 2021 primarily due to Sales in the NAFTA segment were $13.0 billion for the year
lower flat and long production resulting from labor actions in ended December 31, 2023, representing a 5.8% decrease as
Mexico and at AMLPC. Crude steel production increased 2.7% compared to the year ended December 31, 2022. Sales in the
in the second half of 2022 as compared to the second half of NAFTA segment decreased 7.6% to $6.8 billion for the first half
2021 which had been impacted by operational disruptions of 2023 as compared to $7.4 billion for the first half of 2022,
(including the impact of hurricane Ida in the third quarter of mainly due to 20.2% lower average steel selling prices, offset in
2021) in Mexico. part by 10.9% higher steel shipment volumes and the impact of
consolidation of ArcelorMittal Texas HBI. Sales in the NAFTA
Steel shipments in the NAFTA segment increased by 10.2% for segment in the second half of 2023 decreased by 3.6% as
the year ended December 31, 2023 to 10.6 million tonnes as compared to the second half of 2022, mainly due to 10.0% lower
compared to the 9.6 million tonnes for the year ended average steel selling prices, partially offset by the 9.4% increase
December 31, 2022. Steel shipments increased 10.9% to 5.4 in steel shipments.
million tonnes for the first half of 2023, from 4.9 million tonnes
for the first half of 2022 primarily due to higher slab shipments Sales in the NAFTA segment were $13.8 billion for the year
sourced from the Brazil segment for Calvert and higher steel ended December 31, 2022, representing a 9.9% increase as
shipments in Mexico. Steel shipments increased by 9.4% to 5.1 compared to the year ended December 31, 2021. Sales in the
million tonnes in the second half of 2023, as compared to the NAFTA segment increased 28.3% to $7.4 billion for the first half
4.7 million tonnes in the second half of 2022, primarily due to of 2022 as compared to $5.8 billion for the first half of 2021,
the higher slab shipments sourced from Brazil and sold to the mainly due to 37.8% higher average steel selling prices offset in
Calvert joint venture, and higher steel shipments in Mexico. part by 3.7% lower steel shipment volumes. Sales in the NAFTA
segment in the second half of 2022 decreased by 5.8% as
Steel shipments in the NAFTA segment remained stable for the compared to the second half of 2021, mainly due to the sharp
year ended December 31, 2022 as compared to the year ended decline in average steel selling prices, partially offset by the
December 31, 2021. Steel shipments decreased 3.7% to 4.9 increase in steel shipments.
million tonnes for the first half of 2022, from 5.1 million tonnes
for the first half of 2021 primarily due to the labor actions in Operating income
Mexico and at AMLPC as described above and lower demand Operating income for the NAFTA segment decreased by 32.0%
for flat products in Canada. Steel shipments increased by 4.3% to $1.9 billion for the year ended December 31, 2023, compared
in the second half of 2022 as compared to the second half of to $2.8 billion for the year ended December 31, 2022, mainly
2021 which had been impacted by weaker demand in North due to negative price-cost effect driven by lower average steel
America, including automotive, and lower production due to selling prices offset in part by higher steel shipments. In the first
operational disruptions as mentioned above. half of 2023, operating income for the NAFTA segment was
$1,117 million, as compared to $1,871 million in the first half of
Average steel selling prices in NAFTA segment decreased 2022, mainly driven by a significant negative price-cost effect
15.7% for the year ended December 31, 2023 as compared to offset in part by higher steel shipments and the contribution from
the year ended December 31, 2022. In the first half of 2023, ArcelorMittal Texas HBI. Operating income for the NAFTA
average steel selling prices were 20.2% lower than in the first segment in the second half of 2023 decreased by 15.5%, as
half of 2022, in line with the trend in market prices. Average compared to the second half of 2022, mainly due to negative
steel selling prices in the second half of 2023 were 10.0% lower price-cost effect partially offset by an increase in steel
shipments.
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Operating income for the NAFTA segment was stable at $2.8 2022, primarily due to the consolidation of ArcelorMittal Pecém
billion for the year ended December 31, 2022 and December 31, (as discussed above). On a scope adjusted basis excluding the
2021. In the first half of 2022, operating income for the NAFTA impact of ArcelorMittal Pecém, crude steel production for the
segment was $1,871 million, as compared to $936 million in the second half of 2023 was 1.7% lower as compared to the second
first half of 2021, mainly driven by a significant positive price- half of 2022, primarily due to lower demand in Argentina.
cost effect, despite higher costs associated with the labor
actions in Mexico (approximately $120 million) and lower steel Crude steel production for the Brazil segment decreased 4.3%
shipments. Operating income for the NAFTA segment in the to 11.9 million tonnes for the year ended December 31, 2022 as
second half of 2022 decreased by 49.2%, as compared to the compared to 12.4 million tonnes for the year ended December
second half of 2021, mainly due to a negative price-cost effect 31, 2021. Crude steel production in the Brazil segment
partially offset by an increase in steel shipments, a $0.1 billion decreased marginally 0.9% to 6.1 million tonnes in the first half
bargain purchase gain on the acquisition of ArcelorMittal Texas of 2022 as compared to 6.2 million tonnes for the first half of
HBI and a $0.1 billion gain following the settlement of a claim by 2021. Crude steel production in the Brazil segment decreased
ArcelorMittal for a breach of a supply contract. 7.7% to 5.8 million tonnes for the second half of 2022 as
compared to 6.2 million tonnes for the second half of 2021,
primarily due to lower demand from export markets.
Brazil
Performance for the year Steel shipments increased 18.8% to 13.7 million tonnes for the
ended December 31,
year ended December 31, 2023 as compared to 11.5 million
(in millions of USD unless
otherwise shown) 2023 2022 2021 tonnes for the year ended December 31, 2022. On a scope
Sales 13,163 13,732 12,856 adjusted basis excluding the impact of ArcelorMittal Pecém,
steel shipments decreased 2.8% in 2023 as compared to 2022.
Depreciation (341) (246) (228)
Steel shipments increased 8.0% to 6.5 million tonnes in the first
Operating income 1,461 2,775 3,798
half of 2023 as compared to 6.0 million tonnes for the first half of
Crude steel production
(thousand tonnes) 13,986 11,877 12,413 2022, primarily due to the impact of ArcelorMittal Pecém. On a
scope adjusted basis excluding the impact of ArcelorMittal
Flat product shipments 8,833 6,423 6,425
Pecém, steel shipments for the first half of 2023 were 7.9%
Long product shipments 4,905 5,179 5,332
lower as compared to the first half of 2022 due to lower demand
Others and eliminations (57) (86) (62)
including exports. Steel shipments in the second half of 2023
Total steel shipments increased 30.8% as compared to the second half of 2022,
(thousand tonnes) 13,681 11,516 11,695
primarily due to due to the impact of ArcelorMittal Pecém. On a
Average steel selling price
(USD/tonne) 939 1,114 1,030 scope adjusted basis excluding the impact of ArcelorMittal
Pecém, steel shipments for the second half of 2023 were 2.9%
Crude steel production, steel shipments and average steel higher as compared to the second half of 2022.
selling price
Crude steel production for the Brazil segment increased 17.8% Steel shipments decreased 1.5% to 11.5 million tonnes for the
to 14.0 million tonnes for the year ended December 31, 2023 as year ended December 31, 2022 as compared to 11.7 million
compared to 11.9 million tonnes for the year ended December tonnes for the year ended December 31, 2021. Steel shipments
31, 2022 primarily due to the consolidation of ArcelorMittal increased 3.6% to 6.0 million tonnes in the first half of 2022 as
Pecém from March 9, 2023. On a scope adjusted basis compared to 5.8 million tonnes for the first half of 2021 primarily
excluding the impact of ArcelorMittal Pecém, crude steel due to higher export volumes. Steel shipments in the second
production was 3.6% lower in 2023 compared to 2022, primarily half of 2022 decreased 6.6% as compared to the second half of
due to lower demand. Crude steel production in the Brazil 2021, primarily due to lower export volumes with domestic
segment increased 10.8% to 6.8 million tonnes in the first half of shipments up slightly year on year.
2023 as compared to 6.1 million tonnes for the first half of 2022,
Average steel selling prices decreased 15.7% for the year
primarily due to the consolidation of ArcelorMittal Pecém from
ended December 31, 2023 as compared to the year ended
March 9, 2023. On a scope adjusted basis excluding the impact
December 31, 2022, in line with the trend in market prices.
of ArcelorMittal Pecém, crude steel production for the first half of
Average steel selling prices decreased 12.8% in the first half of
2023 was 5.3% lower as compared to the first half of 2022, due
2023 compared to the first half of 2022 in line with the trend in
to lower demand including exports (in particular in the first
market prices. Average steel selling prices decreased 18.1% in
quarter of 2023). Crude steel production in the Brazil segment
second half of 2023 as compared to the second half of 2022, in
increased 25.2% to 7.2 million tonnes for the second half of
line with the trend in market prices.
2023 as compared to 5.8 million tonnes for the second half of

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Average steel selling prices increased 8.1% for the year ended and the impact of the devaluation of the Argentinian peso,
December 31, 2022 as compared to the year ended December partially offset by the contribution from ArcelorMittal Pecém.
31, 2021, in line with the trend in market prices. Average steel
selling prices increased 21.0% in the first half of 2022 compared Operating income for the Brazil segment was $2.8 billion for the
to the first half of 2021, in line with the trend in market prices but year ended December 31, 2022, representing a 26.9% decrease
decreased 2.8% in the second half of 2022 compared to the as compared to the year ended December 31, 2021 as a result
second half of 2021, in line with market trends in particular for of negative factors in the second half of 2022 as described
export markets. below. Operating income in the first half of 2022 was $1,875
million as compared to $1,742 million in the first half of 2021,
Sales primarily driven by higher steel shipments, partly offset by the
In the Brazil segment, sales decreased 4.1% to $13.2 billion for negative mix effect of a higher share of exports, and a gain of
the year ended December 31, 2023 as compared to $13,7 billion $0.2 billion related to PIS/COFINS tax credits related to scrap
for the year ended December 31, 2022, primarily due to 15.7% purchases for prior periods. Operating income in the second half
lower average steel selling prices offset in part by 18.8% higher of 2022 was $901 million as compared to $2,056 million in the
steel shipments, mainly due to the impact of ArcelorMittal second half of 2021, mainly due to a negative price-cost effect
Pecém. In the first half of 2023, sales decreased 6.2% to $6.9 and lower shipments.
billion as compared to $7.4 billion for the first half of 2022
primarily due to 12.8% lower average steel selling prices offset Europe
in part by 8.0% higher steel shipments (including ArcelorMittal Performance for the year
Pecém). In the second half of 2023, sales decreased 1.8% to ended December 31,

$6.3 billion as compared to $6.4 billion for the second half of (in millions of USD unless
otherwise shown) 2023 2022 2021
2022, driven by an 18.1% decrease in average steel selling
Sales 38,305 47,263 43,334
prices and the devaluation of the Argentinian peso, offset by a
30.8% increase in shipments. Depreciation (1,241) (1,268) (1,252)
Net impairment reversal — — 218
In the Brazil segment, sales increased 6.8% to $13.7 billion for Operating income 1,104 4,292 5,672
the year ended December 31, 2022 as compared to the year Crude steel production
ended December 31, 2021, primarily due to 8.1% higher (thousand tonnes) 28,827 31,904 36,795
average steel selling prices offset in part by 1.5% lower steel Flat product shipments 19,570 21,387 23,485
shipments. In the first half of 2022, sales increased 26.8% to Long product shipments 8,001 8,321 9,236
$7.4 billion as compared to $5.8 billion for the first half of 2021
Others and eliminations 500 474 461
primarily due to 21.0% higher average steel selling prices with
Total steel shipments
higher domestic and export prices and 3.6% higher steel (thousand tonnes) 28,071 30,182 33,182
shipments. In the second half of 2022, sales decreased 9.6% to Average steel selling price
$6.4 billion as compared to $7.1 billion for the second half of (USD/tonne) 1,039 1,191 986
2021, driven by a 6.6% decrease in shipments and 2.8%
decrease in average steel selling prices. Crude steel production, steel shipments and average steel
selling price
Operating income Crude steel production for the Europe segment decreased 9.6%
Operating income for the Brazil segment was $1.5 billion for the to 28.8 million tonnes for the year ended December 31, 2023 as
year ended December 31, 2023, representing a 47.3% decrease compared to 31.9 million tonnes for the year ended December
as compared to the year ended December 31, 2022, primarily 31, 2022, mainly due to lower demand and outages of blast
due to a negative price-cost effect and the impact of the furnaces. In the first quarter of 2023, the Company gradually
devaluation of the Argentinian peso offset in part by the restarted previously curtailed crude steel capacity to meet
contribution from ArcelorMittal Pecém. Operating income in the demand as apparent demand conditions improved following the
first half of 2023 was $876 million as compared to $1,875 million aggressive destock in the second half of 2022 but in late March
in the first half of 2022. Operating income decreased 53.3% 2023, the Company was impacted by incidents that temporarily
primarily driven by negative price-cost effect, partly offset by disabled blast furnaces at Gijón, Spain (blast furnace A) and at
higher steel shipments (including the contribution from Dunkirk, France (blast furnace #4). These blast furnaces were
ArcelorMittal Pecém). Operating income decreased 35.0% to restarted in mid-July 2023 but crude steel production was still
$585 million in the second half of 2023 from $901 million in the negatively impacted by slow ramp up in third quarter of 2023.
second half of 2022, mainly due to a negative price-cost effect, Crude steel production in the fourth quarter of 2023 was
negatively impacted by a reline of blast furnace A at Ghent
(Belgium) and planned maintenance of blast furnace #2 at
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Bremen (Germany), both of which restarted in early December Steel shipments were 30.2 million tonnes for the year ended
2023, and production cuts at blast furnace #1 in Fos-sur-Mer December 31, 2022, representing a 9.0% decrease from steel
(France). Crude steel production decreased 13.1% to 14.7 shipments of 33.2 million for the year ended December 31,
million tonnes in the first half of 2023 from 16.9 million tonnes in 2021. Excluding the impact of Acciaierie d'Italia, shipments
the first half of 2022 and 5.7% to 14.1 million tonnes in the decreased 6.1% as compared to 2021. Steel shipments
second half of 2023 from 15.0 million tonnes in the second half decreased 5.8% to 16.3 million tonnes in the first half of 2022,
of 2022 for the above-mentioned reasons. from 17.3 million tonnes in the first half of 2021 mainly due to
the deconsolidation of ArcelorMittal Italia as described above.
Crude steel production for the Europe segment decreased Excluding the impact of the Acciaierie d’Italia deconsolidation,
13.3% to 31.9 million tonnes for the year ended December 31, steel shipments in Europe segment remained stable. Steel
2022 as compared to 36.8 million tonnes for the year ended shipments decreased 12.6% in the second half of 2022
December 31, 2021, mainly due to significantly lower apparent compared to the second half of 2021, primarily due to weaker
demand driven by destocking and adjustment of production in apparent demand, as discussed earlier.
line with demand as a consequence, and the impact of the
deconsolidation of ArcelorMittal Italia as described below. Crude Average steel selling prices decreased 12.7% for the year
steel production decreased 11.2% to 16.9 million tonnes in the ended December 31, 2023 as compared to the year ended
first half of 2022 from 19.1 million tonnes in the first half of 2021. December 31, 2022. Average steel selling prices decreased
Operations relating to ArcelorMittal Italia were included until April 14.2% in the first half of 2023 as compared to the first half of
14, 2021 and then accounted for under the equity method 2022 in line with the trend in market prices. Average steel selling
following the formation of a public-private partnership (renamed prices decreased by 10.8% during the second half of 2023 as
Acciaierie d’Italia) between Invitalia and ArcelorMittal. Excluding compared to the second half of 2022, in line with the trend in
the impact of the Acciaierie d’Italia deconsolidation, steel market prices.
production in the Europe segment in the first half of 2022
decreased by 5.4% compared to the first half of 2021, due to the Average steel selling prices increased 20.8% for the year ended
adjustment of production following the decline in apparent December 31, 2022 as compared to the year ended December
demand and the impact of responses to higher energy prices. 31, 2021. Average steel selling prices increased 42.9% during
Crude steel production decreased 15.6% to 15.0 million tonnes the first half of 2022 as compared to the first half of 2021 in line
in the second half of 2022 from 17.7 million tonnes in the with the trend in market prices and supported by the positive
second half of 2021. Given the weaker macroeconomic impact of annual contract price resets, offset in part by a
conditions and order book, high energy and carbon costs and negative translation impact due to euro depreciation. Average
rising imports, during the third and fourth quarters of 2022, the steel selling prices increased marginally by 1.3% during the
Company curtailed production and temporarily idled steel second half of 2022 as compared to the second half of 2021.
making and finishing asset in France, Spain, Germany and
Sales
Poland to bring supply in line with addressable demand. As
Sales in the Europe segment were $38.3 billion for the year
apparent demand conditions were showing signs of
ended December 31, 2023, representing a 19.0% decrease as
improvement early 2023, the Company gradually restarted
compared to sales of $47.3 billion for the year ended December
capacity.
31, 2022, primarily due to a 12.7% decrease in average steel
Steel shipments were 28.1 million tonnes for the year ended selling prices and 7.0% lower steel shipments. In the first half of
December 31, 2023, representing a 7.0% decrease from steel 2023, sales decreased by 19.1% to $21.4 billion as compared to
shipments of 30.2 million tonnes for the year ended December $26.5 billion in the first half of 2022, primarily due to a 14.2%
31, 2022, primarily due to lower production as discussed above decrease in average steel selling prices and 7.8% lower steel
and weaker demand (including weaker construction-related shipments. In the second half of 2023, sales decreased by
demand). Steel shipments decreased 7.8% to 15.0 million 18.7% to $16.9 billion as compared to $20.8 billion in the
tonnes in the first half of 2023, from 16.3 million tonnes in the second half of 2022, primarily due to a 10.8% decrease in
first half of 2022 mainly due to lower production as discussed average steel selling prices and 6.0% lower steel shipments.
above and weaker demand. Steel shipments decreased 6.0% in
the second half of 2023 compared to the second half of 2022,
primarily due to curtailed production in light of continued weak
apparent demand driven by destocking and construction-related
demand.

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Sales in the Europe segment were $47.3 billion for the year ACIS
ended December 31, 2022, representing a 9.1% increase as
Performance for the year
compared to sales of $43.3 billion for the year ended December ended December 31,
31, 2021, primarily due to a 20.8% increase in average steel (in millions of USD unless
selling prices offset in part by 9.0% decrease in steel shipments. otherwise shown) 2023 2022 2021
In the first half of 2022, sales increased by 32.3% to $26.5 Sales 5,422 6,368 9,854
billion as compared to $20.0 billion in the first half of 2021. In the Depreciation (278) (369) (450)
second half of 2022, sales decreased by 10.9% to $20.8 billion Impairment (1,038) (1,026) —
as compared to $23.3 billion in the second half of 2021. Operating (loss) income (3,021) (930) 2,705
Crude steel production
Operating income (thousand tonnes) 6,527 6,949 11,366
Operating income for the Europe segment for the year ended
CIS 3,615 4,221 7,883
December 31, 2023 was $1,104 million as compared to
Africa 2,412 2,160 2,473
operating income of $4,292 million for the year ended December
Others and eliminations (9) (3) 4
31, 2022. Operating income was lower in 2023 primarily due to
a negative price-cost effect and lower shipments offset in part by Steel shipments (thousand
tonnes) 6,018 6,378 10,360
lower energy costs. Operating income was $933 million for the
Average steel selling price
first half of 2023 as compared to $4,144 million for the first half (USD/tonne) 706 817 780
of 2022, primarily due to a negative price-cost effect and lower
shipments offset in part by lower energy costs. Operating Crude steel production, steel shipments and average steel
income was marginally higher at $171 million for the second half selling price
of 2023 as compared to $148 million for the second half of 2022, On December 7, 2023, the Company completed the sale of
which had been impacted by $0.5 billion inventory-related ArcelorMittal Temirtau (its Kazakhstan steel and mining
charges. operations) to QIC.

Operating income for the Europe segment for the year ended Crude steel production for the ACIS segment decreased 6.1% to
December 31, 2022 was $4.3 billion as compared to operating 6.5 million tonnes for the year ended December 31, 2023 from
income of $5.7 billion for the year ended December 31, 2021. 6.9 million tonnes for the year ended December 31, 2022. On a
Operating income was lower in 2022 mainly due to lower scope adjusted basis, i.e. excluding Kazakhstan, steel
shipments, higher coal and energy costs, inventory related production increased by 3.9% in 2023 as compared to 2022. In
charges of $0.5 billion and a negative translation impact due to the first half of 2023, crude steel production decreased 12.4% to
euro depreciation, partly offset by higher selling prices. 3.3 million tonnes as compared to 3.7 million tonnes in the first
Operating income was $4.1 billion for the first half of 2022 as half of 2022, primarily due to lower steel production in Ukraine
compared to $1.9 billion for the first half of 2021, primarily due to driven by the ongoing war. In the second half of 2023, crude
a positive price-cost effect, including the impact of annual steel production marginally increased 1.3% to 3.3 million tonnes
contract pricing resets, partly offset by a negative translation as compared to 3.2 million tonnes in the second half of 2022,
effect due to euro depreciation. Operating income decreased to primarily due to increased production in Ukraine offset in part by
$0.2 billion for the second half of 2022 (with an operating loss in the effect of the sale of ArcelorMittal Temirtau operations. On a
the fourth quarter of 2022) as compared to $3.8 billion for the scope adjusted basis, i.e. excluding Kazakhstan, steel
second half of 2021 primarily due to a negative price cost-effect, production increased by 21% in the second half of 2023 as
lower shipments, inventory related charges of $0.5 billion in the
third quarter of 2022 (to reflect the net realizable value of
inventory due to declining market prices in Europe), and higher
energy costs. Operating income for the second half of 2021 also
included impairment reversal of $218 million and provision for
early retirement of $55 million.

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compared to the second half of 2022, mainly due to the Average steel selling prices decreased 13.6% for the year
increased production in Ukraine. ended December 31, 2023 as compared to the year ended
December 31, 2022 in line with the market trends. Average steel
Crude steel production for the ACIS segment decreased 38.9% selling prices decreased 16.7% and 9.3% in the first and second
to 6.9 million tonnes for the year ended December 31, 2022 half of 2023 as compared to the first and second half of 2022,
from 11.4 million tonnes for the year ended December 31, 2021. respectively.
In the first half of 2022, crude steel production decreased 34.4%
to 3.7 million tonnes as compared to 5.7 million tonnes in the Average steel selling prices increased 4.7% for the year ended
first half of 2021, primarily due to the ongoing reduction of December 31, 2022 as compared to the year ended December
production in Ukraine. At the onset of the war in Ukraine, the 31, 2021 in line with the higher market prices during the first half
Company suspended operations to protect people and assets. of 2022. Average steel selling prices increased 20.7% and
Since then, the Company slowly restarted operations, and has decreased 10.4% in the first and second half of 2022 as
been operating one of three blast furnaces. Blast furnace No.6 compared to the first and second half of 2021, respectively.
(approximately 20% of AMKR capacity) was restarted on April
11, 2022 (to resume low levels of pig iron production). Iron ore Sales
production was approximately at 55% of capacity during the first Sales in the ACIS segment were $5.4 billion for the year ended
half of 2022. Furthermore, the second quarter of 2022 was also December 31, 2023, representing a 14.9% decrease as
impacted by a two-week labor action and logistic issues in South compared to the year ended December 31, 2022, primarily due
Africa. to a 5.7% decrease in steel shipments due to the ongoing war in
Ukraine and the sale of ArcelorMittal Temirtau operations as
In the second half of 2022, crude steel production decreased discussed above and 13.6% lower average steel selling prices.
43.4% to 3.2 million tonnes from 5.7 million tonnes in the In the first half of 2023, sales decreased 20.6% to $2.8 billion as
second half of 2021. Apart from the impact of lower crude steel compared to $3.6 billion in the first half of 2022, primarily due to
production in Ukraine due to the ongoing conflict, the second 8.9% lower steel shipments and 16.7% lower average steel
half of 2022 was also impacted by power availability in selling prices. In the second half of 2023, sales decreased by
Kazakhstan and planned maintenance in South Africa. During 7.5% to $2.6 billion as compared to $2.8 billion in the second
the third quarter of 2022, iron ore production in Ukraine was half of 2022 primarily due to 9.3% lower average steel selling
temporarily suspended due to weaker demand and logistic prices.
constraints and then restarted in early October 2022 at
approximately 25% level. Sales in the ACIS segment were $6.4 billion for the year ended
December 31, 2022, representing a 35.4% decrease as
Steel shipments for the year ended December 31, 2023 compared to the year ended December 31, 2021, primarily due
decreased by 5.7% to 6.0 million tonnes as compared to 6.4 to a 38.4% decrease in steel shipments due to the ongoing war
million tonnes for the year ended December 31, 2022. On a in Ukraine. In the first half of 2022, sales decreased by 27.1% to
scope adjusted basis, i.e. excluding Kazakhstan, steel $3.6 billion as compared to $4.9 billion in the first half of 2021. In
shipments increased by 1.9% in 2023 as compared to 2022. In the second half of 2022, sales decreased by 43.6% to $2.8
the first half of 2023, steel shipments in the ACIS segment billion as compared to $5.0 billion in the second half of 2021.
decreased 8.9% to 3.0 million tonnes from 3.3 million tonnes for
the first half of 2022, primarily due to the ongoing war in Operating (loss) income
Ukraine. In the second half of 2023, steel shipments marginally Operating loss for the ACIS segment was $3.0 billion for the
decreased by 2.2% to 3.0 million tonnes from 3.1 million tonnes year ended December 31, 2023 as compared to $0.9 billion for
for the second half of 2022, primarily due to the sale of the year ended December 31, 2022. Besides the continuing
ArcelorMittal Temirtau. impact of the conflict between Russia and Ukraine, lower
average steel selling prices and lower steel shipments,
Steel shipments for the year ended December 31, 2022 operating loss for the year ended December 31, 2023 included a
decreased by 38.4% to 6.4 million tonnes as compared to 10.4 $2.4 billion charge relating to the disposal on December 7, 2023
million tonnes for the year ended December 31, 2021, due to of ArcelorMittal Temirtau, the Company's steel and mining
lower production for the above-mentioned reasons. In the first operations in Kazakhstan, including $0.7 billion of impairment of
half of 2022, steel shipments in the ACIS segment decreased property, plant and equipment, $0.2 billion impairment of ACIS
39.0% to 3.3 million tonnes from 5.4 million tonnes for the first goodwill (see note 5.3 to the consolidated financial statements)
half of 2021. In the second half of 2022, steel shipments and $1.5 billion cumulative foreign exchange translation losses
decreased to 3.1 million tonnes from 5.0 million tonnes for the (previously recognized in equity) recycled through the
second half of 2021. consolidated statements of operations. Operating loss for the
year ended December 31, 2023 also included $0.1 billion
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impairment with respect to the Long operations of ArcelorMittal For the year
South Africa (see note 5.3 to the consolidated financial ended December
Note 31,
statements). Operating loss for the first half of 2023 was $0.2
billion as compared to operating income of $0.3 billion for the Iron ore
production
first half of 2022, primarily due to lower steel shipments, lower (million metric
tonnes) 1 Type Product 2023 2022 2021
average steel selling prices and the impact of the war in
Ukraine. In the second half of 2023, operating loss of the ACIS Concentrate,
AMMC Open pit lump, fines 22.4 24.2 22.0
segment amounting to $2.8 billion included the above- and pellets
mentioned charges related to ArcelorMittal Temirtau and the Open pit /
AML Underground Fines 3.6 4.4 4.2
Long business of ArcelorMittal South Africa, as compared to
operating loss of $1.3 billion for the second half of 2022 (which Total iron ore
production 26.0 28.6 26.2
was negatively impacted by a $1.0 billion impairment charge
relating to ArcelorMittal Kryviy Rih’s property, plant and 1. Total of all finished production of fines, concentrate, pellets and lumps.
equipment and intangibles, as described below).
Production
Operating loss for the ACIS segment was $0.9 billion for the The Mining segment had iron ore production of 26.0 million
year ended December 31, 2022 as compared to $2.7 billion tonnes for the year ended December 31, 2023, a 9.1% decrease
operating income for the year ended December 31, 2021. compared to the year ended December 31, 2022. Iron ore
Besides the impact of the Russia-Ukraine conflict, lower steel production of 13.1 million tonnes decreased 7.9% for the first
shipments and a negative price-cost effect, operating loss in half of 2023 compared to 14.2 million tonnes in the first half of
2022 was also negatively impacted by a $1.0 billion impairment 2022 reflecting primarily lower iron ore production in AMMC due
charge relating to ArcelorMittal Kryviy Rih’s property, plant and to unplanned maintenance. Iron ore production decreased
equipment and intangibles due to the decrease in value in use 10.6% in the second half of 2023 compared to the second half
resulting from the significant uncertainty about the evolution of of 2022 primarily due to lower production in Liberia where the
the geopolitical context in Ukraine and therefore the timing and rail operations were severely impacted by damages to a rail
ability of the Company to resume operations to a normal level. bridge in early November 2023.
Operating income for the first half of 2022 decreased to $0.3
billion as compared to $1.5 billion for the first half of 2021, The Mining segment had iron ore production of 28.6 million
primarily due to the impact of the Russia-Ukraine conflict, lower tonnes for the year ended December 31, 2022, a 9.1% increase
steel shipments and higher costs. In the second half of 2022, compared to the year ended December 31, 2021. Iron ore
operating loss of the ACIS segment amounted to $1.3 billion production of 14.2 million tonnes increased 16.9% for the first
including the above-mentioned impairment charge as compared half of 2022 compared to 12.2 million tonnes in the first half of
to operating income of $1.2 billion for the second half of 2021, 2021 primarily as a result of recovery in the second quarter of
impacted by the same factors that drove the decline in the first 2022 of production in AMMC following seasonally lower
half of 2022. production driven by severe weather conditions in the first
quarter of 2022, while the second quarter of 2021 had been
Mining negatively impacted by a four week labor action at AMMC. Iron
Performance for the year
ore production increased 3.1% in the second half of 2022
ended December 31, compared to the second half of 2021, which had been
(in millions of USD unless negatively impacted by locomotive incidents in Liberia.
otherwise shown) 2023 2022 2021
Sales 3,077 3,396 4,045 Sales
Depreciation (238) (234) (228) Sales in the Mining segment were $3.1 billion for the year ended
Operating income 1,144 1,483 2,371 December 31, 2023, representing a 9.4% decrease as
Iron ore production
compared to $3.4 billion for the year ended December 31, 2022
(million tonnes) 26.0 28.6 26.2 as a result of 5.8% decrease in shipments following above-
Iron ore shipments (million mentioned lower production. Sales in the first half of 2023
tonnes) 26.4 28.0 26.0
decreased 18.3% to $1.6 billion compared to $1.9 billion for the
same period in 2022 primarily due to 15.6% lower iron ore
reference prices and 1.9% lower iron ore shipments. Sales in
the second half of 2023 and 2022 remain stable at $1.5 billion
as the increase in iron ore reference prices was largely offset by
lower shipments.

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Sales in the Mining segment were $3.4 billion for the year ended discussed above and lower quality premia partially offset by
December 31, 2022, representing a 16.0% decrease as lower freight costs. Operating income increased by 7.1% to
compared to $4.0 billion for the year ended December 31, 2021. $545 million in the second half of 2023 as compared to $509
Sales in the first half of 2022 decreased 6.3% to $1.9 billion million in the second half of 2022 primarily due to 19.9% higher
compared to $2.1 billion for the same period in 2021 primarily seaborne iron ore prices in the second half of 2023 compared to
due to 24.1% lower iron ore reference prices partly offset by the second half of 2022, offset in part by lower shipments and
18.7% higher iron ore shipments. Sales in the second half of lower quality premia.
2022 were 26.3% lower at $1.5 billion compared to $2.0 billion
for the same period in 2021, largely reflecting the effect of lower Operating income for the Mining segment was 37.5% lower at
iron ore reference prices and lower shipments at AMMC due to $1.5 billion for the year ended December 31, 2022 as compared
adverse affects of exceptionally heavy rains in September 2022 to $2.4 billion for the year ended December 31, 2021, primarily
and poor weather conditions in December 2022, offset by a driven by the decrease in iron ore reference prices, partly offset
recovery in Liberia, which was impacted by rail incidents in the by higher quality premia, lower freight costs and higher
second half of 2021. shipments. Operating income decreased to $1.0 billion in the
first half of 2022 compared to $1.3 billion in the first half of 2021,
Sales to external customers were $1.2 billion for the year ended primarily due to lower seaborne iron ore reference prices and
December 31, 2023, representing a decrease of 10.3% as higher freight costs, partly offset by higher shipments as
compared to the year ended December 31, 2022 due to lower discussed above and higher quality premia. Operating income
selling prices. decreased to $0.5 billion in the second half of 2022 as
compared to $1.1 billion in the second half of 2021 primarily due
Iron ore shipments to external customers were 10.0 million to lower iron ore reference prices, lower quality premia and
tonnes for the year ended December 31, 2023, representing an lower shipments partly offset by lower freight costs.
8.4% decrease as compared to 10.9 million tonnes for the year
ended December 31, 2022, primarily due to lower production in Income or loss from and impairments of investments in
AMMC and Liberia. associates, joint ventures and other investments
Income from investments in associates, joint ventures and other
Sales to external customers were $1.3 billion for the year ended investments was relatively stable at $1.2 billion for the year
December 31, 2022, representing a decrease of 20.4% as ended December 31, 2023, compared to $1.3 billion for the year
compared to the year ended December 31, 2021 due to lower ended December 31, 2022.
selling prices partly offset by higher shipments.
Income from investments in associates, joint ventures and other
Iron ore shipments to external customers were 10.9 million investments benefited from higher contributions from AMNS
tonnes for the year ended December 31, 2022, representing an India and Chinese investees in 2023. Income from investments
increase of 7.7% as compared to 10.1 million tonnes for the in associates, joint ventures and other investments included the
year ended December 31, 2021, primarily driven by higher annual dividend from Erdemir of $117 million in 2022, with no
shipments from AMMC. such dividend received in 2023.

The average reference iron ore price was $119.5 per tonne in Income from investments in associates, joint ventures and other
2023, $120.3 per tonne in 2022 and $159.9 per tonne in 2021 investments was lower at $711 million for the first half of 2023,
(delivered to China, normalized to Qingdao and 62% Fe US $ as compared to $1,137 million for the first half of 2022, primarily
per tonne, Metal Bulletin). However, there may not be a direct due to lower contributions from AMNS Calvert and European
correlation between reference prices and actual selling prices in investees, which experienced similar dynamics to those
various regions at a given time. See also quarterly reference affecting the Company, partially offset by the higher contribution
prices in "Raw materials" above. from AMNS India.

Operating income AMNS India

Operating income for the Mining segment was 22.9% lower at AMNS India production increased by 11.5% from 6.7 million
$1,144 million for the year ended December 31, 2023 as tonnes in 2022 to 7.5 million tonnes in 2023 and shipments
compared to $1,483 million for the year ended December 31, increased by 12.1% from 6.5 million tonnes in 2022 to 7.3
2022, primarily driven by lower quality premia, lower shipments million tonnes in 2023. Crude steel production and steel
and higher costs partly offset by lower freight. Operating income shipments of AMNS India increased by 4.7% and 8.2%,
decreased to $599 million in the first half of 2023 compared to respectively, from 3.4 million tonnes in the first half of 2022 to
$974 million in the first half of 2022, primarily due to lower 3.6 million tonnes in the first half of 2023 and from 3.2 million
seaborne iron ore reference prices, lower shipments as tonnes in the first half of 2022 to 3.5 million tonnes in the first

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half of 2023, respectively. Crude steel production and steel million tonnes in the first half of 2021 to 3.4 million tonnes in the
shipments of AMNS India increased by 18.8% and 15.7%, first half of 2022 and from 3.4 million tonnes in the first half of
respectively, from 3.3 million tonnes in the second half of 2022 2021 to 3.2 million tonnes in the first half of 2022, respectively.
to 3.9 million tonnes in the second half of 2023 and from 3.2 AMNS India's operating income was negatively impacted by the
million tonnes in the second half of 2022 to 3.7 million tonnes in introduction of the export duty during the second quarter of 2022
the second half of 2023, respectively. AMNS India’s results in despite the positive contribution from external sale of pellets
the second half of 2023 also reflected the unwinding of a natural from the newly commissioned Odisha plant during the second
gas hedges. quarter of 2022. AMNS India's crude steel production and steel
shipments decreased by 12.1% and 7.7%, respectively, from 3.7
AMNS Calvert million tonnes in the second half of 2021 to 3.3 million tonnes in
Hot strip mill production1 for AMNS Calvert increased by 7.7% the second half of 2022 and from 3.5 million tonnes in the
from 4.3 million tonnes in 2022 to 4.7 million tonnes in 2023 and second half of 2021 to 3.2 million tonnes in the second half of
shipments2 increased by 5.7% from 4.2 million tonnes in 2022 to 2022, respectively. AMNS india production in the second half of
4.5 million tonnes in 2023. AMNS Calvert's production1 2022 was impacted by planned maintenance and lower exports
increased by 7.7% from 2.3 million tonnes in the first half of following the imposition of export duties on steel exports from
2022 to 2.4 million tonnes in the first half of 2023 while steel India in the second quarter of 2022 (export duties removed from
shipments2 remained stable at 2.3 million tonnes in the first half the end of November 2022).
of 2022 and 2023. AMNS Calvert is constructing a new 1.5
million tonnes EAF and caster whose estimated completion has AMNS Calvert
been extended to the second half of 2024 (previously second Hot strip mill production1 for AMNS Calvert decreased by 10.0%
half of 2023) largely due to enlarged scope and inflation. The from 4.8 million tonnes in 2021 to 4.3 million tonnes in 2022 and
joint venture is to invest approximately $1 billion. An option to shipments2 decreased by 7.0% from 4.5 million tonnes in 2021
add a further 1.5 million tonnes EAF at lower capital expenditure to 4.2 million tonnes in 2022. AMNS Calvert's hot strip mill
intensity is being studied. AMNS Calvert's production1 increased production1 decreased by 9.8% from 2.5 million tonnes in the
by 7.8% from 2.1 million tonnes in the second half of 2022 to 2.2 first half of 2021 to 2.3 million tonnes in the first half of 2022
million tonnes in the second half of 2023 while steel shipments2 while steel shipments2 remained stable at 2.3 million tonnes in
increased by 10.7% from 1.9 million tonnes in the second half of the first half of 2021 and 2022. During the third quarter of 2022,
2022 to 2.1 million tonnes in the second half of 2023. Increased AMNS Calvert was impacted by a negative price-cost effect and
production and shipments were due to improved demand with lagged cost of slab inventory that does not reflect prevailing
conditions. AMNS Calvert’s results were negatively impacted in slab market prices. AMNS Calvert's hot strip mill production1
the second half of 2023 by negative price cost effect, weaker decreased by 10.3% from 2.3 million tonnes in the second half
product mix and higher maintenance costs. of 2021 to 2.1 million tonnes in the second half of 2022 following
a planned maintenance in the second half of 2022. Steel
Income in the first half of 2022 included also the annual dividend shipments2 decreased by 14.2% from 2.3 million tonnes in the
received from Erdemir of $117 million with no such dividend second half of 2021 to 1.9 million tonnes in the second half of
received in the first half of 2023. Income from investments in 2022, due to the reason discussed above.
associates, joint ventures and other investments was higher at
$473 million for the second half of 2023, as compared to $180 Income in 2022 was positively impacted by the higher
million for the second half of 2022, primarily due to higher contribution from European investees (including $0.1 billion
contributions from AMNS India and Chineese investees, partially income for Acciaierie d'Italia arising from recognition of a
offset by the lower contribution from European investees. deferred tax asset in the second quarter of 2022). Income from
investments in associates, joint ventures and other investments
Income from investments in associates, joint ventures and other in 2022 also included $117 million annual dividend received
investments was $1.3 billion for the year ended December 31, from Erdemir as compared to $89 million in 2021.
2022, compared to $2.2 billion for the year ended December 31,
2021. Income in 2022 was lower mainly due to the lower Income in the first half of 2022 included improved contribution
contributions from AMNS India and AMNS Calvert. from European investees (including $0.1 billion income for
Acciaierie D'Italia arising from recognition of a deferred tax
AMNS India asset in the second quarter of 2022) offset in part by lower
AMNS India production decreased by 9.6% from 7.4 million contributions from AMNS India.
tonnes in 2021 to 6.7 million tonnes in 2022 and shipments
decreased by 6.4% from 6.9 million tonnes in 2021 to 6.5 million Income in the first half of 2022 included also the annual dividend
tonnes in 2022. AMNS India's crude steel production and steel received from Erdemir of $117 million as compared to $89
shipments decreased by 7.0% and 5.3%, respectively, from 3.7 million in the first half of 2021. Income in the second half of 2022
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was lower on account of lower contributions from AMNS India, ended December 31, 2021. Net interest expense (interest
AMNS Calvert and European investees offset in part by expense less interest income) was lower at $213 million for the
improved contributions from Chinese investees in the fourth year ended December 31, 2022 as compared to $278 million for
quarter of 2022. During the third quarter of 2022, European the year ended December 31, 2021, due to higher interest
investees were impacted by a negative price-cost effects. income, although net interest expense increased in the fourth
quarter of 2022 compared to the third quarter of 2022, due to
1. Production: all production of the hot strip mill including processing of slabs on a hire work
basis for ArcelorMittal group entities and third parties, including stainless steel slabs. the issuance in the third and fourth quarters of 2022 of new
2. Shipments: all shipments including shipments of finished products processed on a hire work bonds bearing higher interest rates.
basis for ArcelorMittal group entities and third parties, including stainless steel products.

Foreign exchange losses were $48 million as compared to

Impairments of investments in joint ventures, associates and
foreign exchange gains of $191 million and foreign exchange
other investments were $1.4 billion in the year ended December
losses of $155 million for the years ended December 31, 2023,
31, 2023 with respect to Acciaierie d'Italia due to a downward
2022 and 2021, respectively.
revision of expected future cash flows together with the
uncertainty regarding its future, see also note 2.3 to Other net financing costs (including expenses related to true
consolidated financial statements. No such impairments were sale of receivables, bank fees, interest on pensions and fair
recorded in 2022 or 2021. value adjustments of the call option of the mandatorily
convertible bond and derivative instruments) were $0.3 billion
Financing costs-net
for the year ended December 31, 2022 compared to $0.7 billion
Financing costs-net include net interest expense, revaluation of
for the year ended December 31, 2021, and included mark-to-
financial instruments, net foreign exchange income/expense
market losses related to the mandatory convertible bond call
(i.e., the net effects of transactions in a foreign currency other
option totaling $16 million as compared to $44 million for the
than the functional currency of a subsidiary) and other net
year ended December 31, 2021.
financing costs (which mainly include bank fees, accretion of
defined benefit obligations and other long-term liabilities). Income tax expense (benefit)
ArcelorMittal recorded an income tax expense of $0.2 billion for
Net financing costs were lower at $0.9 billion for the year ended
the year ended December 31, 2023 as compared to $1.7 billion
December 31, 2023 as compared to $0.3 billion for the year
for the year ended December 31, 2022 reflecting overall lower
ended December 31, 2022. Net interest expense (interest
taxable income. See note 10.1 to the consolidated financial
expense less interest income) was lower at $145 million for the
statements.
year ended December 31, 2023 as compared to $213 million for
the year ended December 31, 2022, due to higher interest ArcelorMittal recorded an income tax expense of $1.7 billion for
income in Argentina from investments in currency-protected the year ended December 31, 2022 as compared to $2.5 billion
funds. for the year ended December 31, 2021 reflecting overall lower
taxable income.
Foreign exchange losses were $48 million as compared to
foreign exchange gains of $191 million for the years ended ArcelorMittal’s consolidated income tax expense (benefit) is
December 31, 2023 and 2022, respectively. affected by the income tax laws and regulations in effect in the
various countries in which it operates and the pre-tax results of
Other net financing costs (including expenses related to true
its subsidiaries in each of these countries, which can change
sale of receivables ("TSR"), bank fees, interest on pensions and
from year to year. ArcelorMittal operates in jurisdictions, mainly
fair value adjustments of the call option of the mandatorily
in Eastern Europe and Asia, which have a structurally lower
convertible bond and derivative instruments) were $0.7 billion
corporate income tax rate than the statutory tax rate as enacted
for the year ended December 31, 2023 compared to $0.3 billion
in Luxembourg (24.94%), as well as in jurisdictions, mainly in
for the year ended December 31, 2022. 2022 included mark-to-
Brazil and Mexico, which have a structurally higher corporate
market losses related to the mandatory convertible bond call
income tax rate.
option totaling $16 million.

Net financing costs were lower at $0.3 billion for the year ended
December 31, 2022 as compared to $1.2 billion for the year

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The statutory income tax expense (benefit) and the statutory income tax rates of the countries that most significantly resulted in the tax
expense (benefit) at statutory rate for each of the years ended December 31, 2023, 2022 and 2021 are as set forth below:

2023 2022 2021

Statutory Statutory Statutory Statutory Statutory Statutory
income tax income tax rate income tax income tax rate income tax income tax rate
Argentina 80 35.00 % 100 35.00 % 103 35.00 %
Belgium (12) 25.00 % 238 25.00 % 149 25.00 %
Brazil 153 34.00 % 698 34.00 % 943 34.00 %
Canada 470 25.90 % 747 25.90 % 835 25.90 %
France (116) 25.82 % 158 25.82 % 231 25.82 %
Germany (154) 30.30 % 82 30.30 % 134 30.30 %
Italy 3 24.00 % (14) 24.00 % (8) 24.00 %
Kazakhstan (69) 20.00 % 26 20.00 % 149 20.00 %
Liberia (18) 25.00 % — 25.00 % 16 25.00 %
Luxembourg 806 24.94 % 633 24.94 % 660 24.94 %
Mexico 49 30.00 % 148 30.00 % 238 30.00 %
The Netherlands (627) 25.80 % (9) 25.80 % (13) 25.80 %
Poland (71) 19.00 % 49 19.00 % 155 19.00 %
South Africa (58) 27.00 % 47 27.00 % 136 28.00 %
Spain (1) 25.00 % 26 25.00 % 70 25.00 %
Ukraine (56) 18.00 % (267) 18.00 % 202 18.00 %
United States 83 21.00 % 103 21.00 % 58 21.00 %
Others (8) 53 88
Total 454 2,818 4,146

Note: The statutory tax rates are the (future) rates enacted or substantively enacted by the end of the respective period.

Non-controlling interests
Net income attributable to non-controlling interests was $103 time cash or cash equivalent balances may be held at the
million, $236 million and $609 million for the years ended Company’s international subsidiaries or its holding companies.
December 31, 2023, 2022 and 2021, respectively. Net income Some of these operating subsidiaries have debt outstanding or
attributable to non-controlling interests decreased in 2023 are subject to acquisition agreements that impose restrictions on
compared to 2022 and in 2022 compared to 2021 primarily as a such operating subsidiaries’ ability to pay dividends, but such
result of lower operating performance. restrictions are not significant in the context of ArcelorMittal’s
overall liquidity. Repatriation of funds from operating
Net income attributable to equity holders of the parent subsidiaries may also be affected by tax and foreign exchange
ArcelorMittal’s net income attributable to equity holders of the policies in place from time to time in the various countries where
parent was $0.9 billion, $9.3 billion and $15.0 billion for the the Company operates, though none of these policies is
years ended December 31, 2023, 2022 and 2021, respectively. currently significant in the context of ArcelorMittal’s overall
liquidity.
Liquidity and capital resources
ArcelorMittal’s principal sources of liquidity are cash generated In management’s opinion, ArcelorMittal’s credit facilities are
from its operations and its credit facilities at the corporate level. adequate for its present requirements.

Because ArcelorMittal is a holding company, it is dependent As of December 31, 2023, ArcelorMittal’s cash and cash
upon the earnings and cash flows of, as well as dividends and equivalents and restricted cash amounted to $7.8 billion
distributions from, its operating subsidiaries to pay expenses (including restricted cash of $97 million, of which $54 million
and meet its debt service obligations. Cash and cash relating to various environmental obligations, true sales of
equivalents are primarily centralized at the parent level and are receivables programs and letter of credits issued in ArcelorMittal
managed by ArcelorMittal Treasury SNC, although from time to South Africa) as compared to $9.4 billion (including restricted

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cash of $114 million, of which $52 million relating to various depending on the Company’s performance against two metrics
environmental obligations and true sales of receivables measured annually against pre-defined targets with respect to
programs in ArcelorMittal South Africa) as of December 31, its environmental and sustainability performance (CO2 intensity
2022. In addition, ArcelorMittal had available borrowing capacity of the Company’s European operations and the number of
of $5.4 billion under its $5.5 billion revolving credit facility as of facilities which have been certified by ResponsibleSteel™). The
December 31, 2023 compared to $5.5 billion as of December Facility may be used for general corporate purposes and was
31, 2022. For information on the currencies of cash and cash fully available as of December 31, 2023.
equivalents and restricted cash, see note 6.1.4 to the
consolidated financial statements. Non-compliance with the covenants in the Company’s borrowing
agreements entitles the lenders under such facilities to
As of December 31, 2023, ArcelorMittal’s total debt, which accelerate the Company’s repayment obligations. The Company
includes long-term debt and short-term debt was $10.7 billion, was in compliance with the financial covenants in the
compared to $11.7 billion as of December 31, 2022. agreements related to all of its borrowings as of December 31,
2023.
Net debt (defined as long-term debt ($8.4 billion) plus short-term
debt ($2.3 billion), less cash and cash equivalents, restricted As of December 31, 2023, ArcelorMittal had guaranteed $234
cash and other restricted funds ($7.8 billion)) was $2.9 billion as million of debt of its operating subsidiaries compared to $92
of December 31, 2023, up from $2.2 billion at December 31, million as of December 31, 2022. See also note 9.4 to the
2022, comprised of long-term debt ($9.1 billion) plus short-term consolidated financial statements for a description of guarantees
debt ($2.6 billion), less cash and cash equivalents and restricted by ArcelorMittal for joint ventures indebtedness of $5.0 billion as
cash ($9.4 billion). Most of the external debt is borrowed by the of December 31, 2023 including $3.5 billion issued on behalf of
parent company on an unsecured basis and bears interest at AMNS India, $421 million issued on behalf of Calvert, $480
varying levels based on a combination of fixed and variable million in relation to outstanding lease liabilities for vessels
interest rates. Gearing (defined as net debt divided by total operated by Global Chartering and $208 million on behalf of Al
equity) at December 31, 2023 and 2022 was 5% and 4%, Jubail. ArcelorMittal’s debt facilities have provisions whereby the
respectively. See note 6.3 to the consolidated financial acceleration of the debt of another borrower within the
statements. ArcelorMittal group could, under certain circumstances, lead to
acceleration under such facilities.
The margin applicable to ArcelorMittal’s principal credit facilities
($5.5 billion revolving credit facility and certain other credit In particular, with respect to joint ventures, on March 16, 2020,
facilities) and the coupons on certain of its outstanding bonds the parent company of AMNS India entered into a $5.1 billion
are subject to adjustment in the event of a change in its long- ten-year term loan agreement with Japan Bank for International
term credit ratings. ArcelorMittal's long-term credit rating was Cooperation ("JBIC"), MUFG Bank LTD., Sumitomo Mitsui
upgraded on August 9, 2021 by Moody's to 'Baa3' and its Banking Corporation, Mizuho Bank Europe N.V., and Sumitomo
outlook was changed to positive by Moody's on February 19, Mitsui Trust Bank, Limited (London Branch) in connection with
2024. On June 16, 2023, Standard & Poor's revised its outlook the acquisition of AMNS India. The obligations under the term
on ArcelorMittal to positive on expected strengthening of the loan agreements are both guaranteed by ArcelorMittal and NSC
business and affirmed a long-term credit rating of 'BBB-'. See in proportion to their interests in the joint venture, 60% and 40%.
"Introduction—Risk Factors and Controls—Risks related to On April 28, 2021, the syndicate of Japanese banks amended
ArcelorMittal's financial position and organizational structure— the agreement and agreed that the Leverage Ratio financial
ArcelorMittal's indebtedness could have an adverse impact on covenant would fall away in the event that the Company obtains
its results of operations and financial position, and the market's an investment grade long-term credit rating (with a stable
perception of ArcelorMittal's leverage may affect its share price." outlook) from two rating agencies (which occurred in 2021).

ArcelorMittal's $5.5 billion revolving credit facility (see "— On March 30, 2023, AMNS Luxembourg entered into an
Financings—Principal credit facilities" below) contains restrictive additional $5 billion loan agreement ("JBIC co-financing loan")
covenants, which among other things, limit encumbrances on with the same syndicate of Japanese banks. As for the above-
the assets of ArcelorMittal and its subsidiaries, the ability of mentioned loan, the obligations of AMNS Luxembourg under the
ArcelorMittal’s subsidiaries to incur debt and the ability of term loan agreement are guaranteed by ArcelorMittal and NSC
ArcelorMittal and its subsidiaries to dispose of assets in certain in proportion to their interests in the joint venture, 60% and 40%,
circumstances. respectively. The proceeds obtained through the JBIC co-
financing loan will be used to finance the expansion of AMNS
On April 27, 2021, the revolving credit facility was amended so
India’s steelmaking capacity at its Hazira plant from 8.6 million
that the margin payable would be increased or decreased
tonnes to 15 million tonnes. In addition to the primary
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steelmaking capacity expansion, the project includes the The following table summarizes the repayment schedule of
development of downstream rolling and finishing facilities that ArcelorMittal’s outstanding indebtedness, which includes short-
will enhance AMNS India’s ability to produce value-added steels term and long-term debt, as of December 31, 2023.
for sectors including defense, automotive and infrastructure.

Repayment amounts per year (in billions of $)

Type of indebtedness as of December 31, 2023 2024 2025 2026 2027 2028 >2028 Total
Bonds 0.9 1.0 1.1 1.2 — 2.6 6.8
Commercial paper 0.7 — — — — — 0.7
Lease liabilities and other loans 0.7 0.7 0.2 0.5 0.2 0.9 3.2
Total gross debt 2.3 1.7 1.3 1.7 0.2 3.5 10.7

The average debt maturity of the Company was 5.7 years as of

December 31, 2023 and December 31, 2022. remaining available amount under the bridge facility of $444
million was cancelled.
Further information regarding ArcelorMittal’s outstanding short-
term and long-term indebtedness as of December 31, 2023, On September 30, 2010, ArcelorMittal entered into a $500
including the breakdown between fixed rate and variable rate million revolving multi-currency letter of credit facility (the “Letter
debt, is set forth in note 6 to the consolidated financial of Credit Facility”). The Letter of Credit Facility is used by the
statements. Further information regarding ArcelorMittal’s use of Company and its subsidiaries for the issuance of letters of credit
financial instruments for hedging purposes is set forth in note 6 and other instruments. The terms of the letters of credit and
to the consolidated financial statements. other instruments contain certain restrictions as to duration. The
Letter of Credit Facility was subsequently amended to reduce its
Financings amount to $350 million. On July 31, 2019, the Company
ArcelorMittal’s principal credit facilities are described below, for refinanced its Letter of Credit Facility by entering into a $350
further information on its existing credit facilities and several million revolving multi-currency letter of credit facility, which
debt financing and repayment transactions completed during initially matured on July 31, 2022. On August 5, 2020, the
2023, please refer to note 6 to the consolidated financial maturity of the Letter of Credit Facility was extended to July 31,
statements. 2023. On November 25, 2020, the amount of the Letter of Credit
Facility was increased to $395 million. On June 25, 2021, the
Principal credit facilities maturity of the Letter of Credit Facility was extended to July 31,
On December 19, 2018, ArcelorMittal signed an agreement for a 2024.
$5.5 billion revolving credit facility (the "Facility") which
incorporated a single tranche of $5.5 billion. On November 27, Mandatory convertible bond
2019 and on November 26, 2020, ArcelorMittal exercised the On March 14, 2023, the Company through its wholly-owned
option to extend the Facility's maturity by one year to December subsidiary Hera Ermac made an early repayment of 226,666 of
19, 2024 and to December 19, 2025 respectively. The the 666,666 outstanding unsecured and unsubordinated bonds
commitments consist of $5.4 billion until December 19, 2025 mandatorily convertible into preferred shares of such subsidiary
($5.5 billion until December 19, 2023). As of December 31, for a total cash consideration of $340 million. See notes 6.3 and
2023, $5.4 billion was fully available under the Facility. 11.2 to the consolidated financial statements. On December 21,
2023, the Company extended the conversion date of its bonds
On July 27, 2022, the Company entered into a $2.2 billion mandatorily convertible into preferred shares to January 30,
bridge term facility agreement with a financial institution. The 2026.
facility may be applied toward the purchase price for the
intended acquisition of CSP, as well as the refinancing of its Mandatory convertible notes
existing indebtedness and the payment of related fees, costs On May 19, 2023, upon mandatory conversion of the remaining
and expenses. The facility was available for 12 months from 24,290,025 outstanding mandatorily convertible subordinated
signing with two extension options of 6 months each at the notes ("MCN") due May 18, 2023, ArcelorMittal delivered a total
borrower's discretion. On December 8, 2022, an amount of of 57,057,991 treasury shares (of which 9,396,120 to the
$1.76 billion was cancelled, following the bond issuances Significant Shareholder). See note 11.2 to the consolidated
completed on September 20, 2022 and November 29, 2022. financial statements.
After the cancellation, the remaining available amount under the
bridge facility was $444 million. On January 31, 2023, the

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Working capital management • Capital expenditure commitments mainly related to

The Company makes drawdowns from and repayments on the commitments associated with investments in expansion
Facility in the framework of its cash management. In addition, and improvement projects by various subsidiaries,
the Company has established a number of programs for sales • Other commitments comprising mainly commitments
without recourse of trade accounts receivable to various incurred for gas supply to electricity suppliers.
financial institutions (referred to as true sale of receivables
(“TSR”)). As of December 31, 2023, the total amount of trade These commitments, obligations and other arrangements will
accounts receivables sold amounted to $4.5 billion. Through the become due in 2024 and beyond. These various purchase
TSR programs, certain operating subsidiaries of ArcelorMittal commitments and long-term obligations will have an effect on
surrender the control, risks and benefits associated with the ArcelorMittal’s future liquidity and capital resources. For further
accounts receivable sold; therefore, the amount of receivables details on commitments and obligations, please refer to note 9.4
sold is recorded as a sale of financial assets and the balances to the consolidated financial statements. ArcelorMittal also has
are removed from the consolidated statements of financial various environmental commitments and asset retirement
position at the moment of sale. obligations as of December 31, 2023. For further details on
environmental commitments and asset retirement obligations,
As part of the Company’s ongoing efforts to improve its working please refer to note 9.1 to the consolidated financial statements.
capital position, it continually engages with its customers and
suppliers with the aim of improving overall terms, including The Company expects to service its cash requirements in the
pricing, quality, just in time delivery, discounts and payment near and medium-term with net cash provided by operating
terms. Trade accounts payable have maturities from 15 to 180 activities. In the future, the Company may enter into additional
days depending on the type of material, the geographic area in financing facilities if required. For additional information on near
which the purchase transaction occurs and the various and medium term cash requirements, see "—Outlook".
contractual agreements. The Company’s average outstanding
Earnings distribution
number of trade payable days amounted to 81 over the last 5
ArcelorMittal held 33.5 million shares in treasury as of
years. The ability of suppliers to provide payment terms may be
December 31, 2023, as compared to 72.5 million shares as of
dependent on their ability to obtain funding for their own working
December 31, 2022. As of December 31, 2023, the number of
capital needs and or their ability to early discount their
shares held by the Company in treasury represented
receivables at their own discretion (the Company estimates that
approximately 3.93% of the Company’s total issued share
about $2.9 billion of trade payables were subject to early
capital. On January 14, 2022, ArcelorMittal cancelled 45 million
discount by its suppliers in 2023 as compared to $2.8 billion in
treasury shares to keep the number of treasury shares within
2022). Given the nature and large diversification of its supplier
appropriate levels. Following this cancellation, the aggregate
base the Company does not expect any material impact to its
number of shares issued and fully paid up decreased from
own liquidity position as a result of suppliers not having access
982,809,772 to 937,809,772. On May 18, 2022, ArcelorMittal
to liquidity. As of December 31, 2023, a 5-day reduction in trade
cancelled 60 million treasury shares to keep the number of
payable days would result in a trade payables decrease by $693
treasury shares within appropriate levels. Following this
million.
cancellation, the aggregate number of shares issued and fully
ArcelorMittal's material cash requirements in the near and paid up decreased from 937,809,772 to 877,809,772. On April
medium term 28, 2023, ArcelorMittal cancelled 25 million treasury shares to
The Company's cash requirements in the near and medium keep the number of treasury shares within appropriate levels.
term are primarily driven by the current commitments, Following this cancellation, the aggregate number of shares
obligations and other arrangements in place as of December 31, issued and fully paid up decreased from 877,809,772 to
2023. ArcelorMittal has various purchase commitments for 852,809,772.
materials, supplies and capital expenditure incidental to the
Following the achievement of the Group’s net debt target, and in
ordinary course of business. As of December 31, 2023,
line with its previous statements, the Board of Directors
ArcelorMittal had various outstanding obligations mostly related
approved during the first quarter of 2021 a new capital return
to:
policy. See "Introduction—History and development of the
• Guarantees, pledges and other collateral related to Company—Capital return policy". According to this policy, the
financial debt and credit lines given on behalf of third Board recommended a $0.30/share base dividend, subject to
parties and joint ventures, the approval of shareholders, which was given at the annual
general meeting of shareholders on June 8, 2021. The dividend
amounted to $325 million ($312 million net of dividends paid to
subsidiaries holding treasury shares) and was paid on June 15,
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 Management report

2021. After paying this base dividend, the Company has also including a breakdown by region and by type of plan, see note
implemented share buyback programs and MCN repurchases 8.2 to the consolidated financial statements.
as part of its capital return policy.
Sources and uses of cash
In February 2022, the Board of Directors recommended an
increase of the base annual dividend to $0.38/share, from Years ended December 31, 2023, 2022 and 2021
$0.30/share, subject to the approval of shareholders, which was
The following table presents a summary of cash flow of
given at the annual general meeting of shareholders on May 4,
ArcelorMittal:
2022. The dividend amounted to $332 million and was paid on
June 10, 2022. In addition, during 2022, ArcelorMittal completed Summary of cash flow For the year ended December 31,
two consecutive share buyback programs for a total amount of
(in $ millions) 2023 2022 2021
€1.9 billion ($2.0 billion) pursuant to an authorization by the
Net cash provided by operating
annual general meeting of shareholders on June 8, 2021 and activities 7,645 10,203 9,905
May 4, 2022. Net cash used in investing
activities (5,848) (4,483) (340)
In February 2023, the Board proposed to increase the annual Net cash used in financing
base dividend to shareholders to $0.44/share. On May 2, 2023 activities (3,666) (477) (10,898)

at the annual general meeting of shareholders, the shareholders

Net cash provided by operating activities
approved the Board’s proposed dividend of $0.44 per share.
For the year ended December 31, 2023, net cash provided by
The dividend amounted to $369 million and payment included
operating activities decreased to $7.6 billion as compared with
two installments; the first installment of $185 million was paid on
$10.2 billion for the year ended December 31, 2022. Net cash
June 15, 2023 and the second installment of $184 million was
provided by operating activities included an operating working
paid on December 7, 2023. In addition, on March 31, 2023,
capital release of $1.6 billion as compared to an operating
ArcelorMittal completed a share buyback program for a total
working capital investment of $1.3 billion in 2022, including an
amount of €1.4 billion ($1.5 billion) pursuant to an authorization
inflow from inventories and trade accounts receivable of $1.6
given by the annual general meeting of shareholders on May 4,
billion and $0.3 billion, respectively, partially offset by an outflow
2022. On May 5, 2023, the Company announced a new share
for trade accounts payable of $0.3 billion. The operating working
buy back program of up to 85 million shares to be completed by
capital release was driven primarily by lower accounts
May 2025 (subject to market conditions) under the authorization
receivable (due to lower prices and lower volumes, including the
given by the annual general meeting of shareholders of May 2,
impact of normal seasonality at year end), and lower inventories
2023.
(primarily due to reduced inventory volumes) in the fourth
In February 2024, the Board of Directors recommended an quarter of 2023.
increase of the base annual dividend to $0.50/share (from
For the year ended December 31, 2022, net cash provided by
$0.44/share paid in 2023) to be paid in two equal installments in
operating activities increased to $10.2 billion as compared with
June 2024 and December 2024, subject to the approval of
$9.9 billion for the year ended December 31, 2021. The
shareholders at the annual general meeting of shareholders in
increase in net cash provided by operating activities included an
April 2024.
operating working capital investment of $1.3 billion, an outflow
Additional buybacks under the outstanding buyback program for inventories and trade accounts payable of $2.1 billion and
announced in May 2023 will be allocated to the 2024 capital $0.3 billion, respectively, partially offset by an inflow for trade
return (targeting 50% of post-dividend free cash flow as per the accounts receivable of $1.1 billion. The investment in operating
policy). Share buybacks will continue as per the Company's working capital was mainly driven by elevated raw material and
defined policy to return 50% of post-dividend free cash flow to energy prices although in the fourth quarter of 2022; net cash
shareholders. provided by operating activities included a $2.4 billion operating
working capital release, including an inflow for inventories and
Pension/OPEB liabilities trade accounts receivable of $1.7 billion and $1.1 billion,
The defined benefit liabilities for employee benefits increased by respectively, partially offset by an outflow of trade accounts
$0.1 billion to $2.7 billion as of December 31, 2023, as payable of $0.4 billion. The release of operating working capital
compared to $2.6 billion as of December 31, 2022 mainly due to was mainly driven by lower investment in accounts receivable
an increase in interest on pension (due to the increase in (price and volume) and lower inventories due to the impact of
discount rates in euro zone). For additional information with lower production costs and reduced inventory volumes.
respect to the Company’s pension plan and OPEB liabilities,

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For the year ended December 31, 2021, net cash provided by Metal and TerraPower, respectively, through the Company's
operating activities totaled to $9.9 billion. It included an XCarb® Innovation Fund and a $73 million equity contribution
operating working capital investment of $6.4 billion composed of into the joint venture with Casa dos Ventos, partly offset by cash
an outflow for inventories of $8.6 billion and an outflow for trade inflows of $626 million following the sale of 265 million shares in
accounts receivable of $2.5 billion, partially offset by an inflow Ereĝli Demir ve Çelik Fabrikalari T.A.S. (“Erdemir”) and $254
for trade accounts payable of $4.8 billion. The investment in million (net of $24 million cash disposed) related to the sale of
operating working capital was mainly driven by elevated raw ArcelorMittal Temirtau.
material prices, relatively robust finished steel prices and lower
than anticipated inventory reduction. Net cash used in investing activities was $4.5 billion for the year
ended December 31, 2022 as compared to $0.3 billion for the
Net cash used in investing activities year ended December 31, 2021. Capital expenditures were $3.5
Net cash used in investing activities was $5.8 billion for the year billion for the year ended December 31, 2022 as compared to
ended December 31, 2023 as compared to $4.5 billion for the $3.0 billion for the year ended December 31, 2021. Capital
year ended December 31, 2022. Capital expenditures were $4.6 expenditures for the year ended December 31, 2022 were
billion for the year ended December 31, 2023 as compared to consistent with the latest guidance provided after the third
$3.5 billion for the year ended December 31, 2022. Capital quarter of 2022 but lower than the initial guidance of $4.5 billion,
expenditures for the year ended December 31, 2023 were which had been reduced to reflect some moderate delays to
broadly consistent with the initial guidance (in the mid-point certain strategic and decarbonization spending plans due to
range between $4.5 billion to $5.0 billion). Similar to 2023, the project mobilization/contractors as well as a $0.2 billion
Company expects 2024 capital expenditures to be in the range reduction from foreign exchange effects relative to the initial
of $4.5 to $5.0 billion with decarbonization capital expenditures 2022 budget. The previously announced strategic pipeline
expected to increase to between $0.3 to $0.4 billion (as (2021-2024) increased by $0.5 billion to $4.2 billion, with the
compared to $0.2 billion in 2023) and capital expenditures addition of a new production unit for electrical steels at the
outside of strategic capital expenditures and decarbonization Mardyck site in the north of France, with an outflow of $0.9
projects (which includes cost reduction plans and environment billion as of the end of 2022.
projects as well as general maintenance capital expenditures)
are expected to be similar to 2023 ($3.0 billion) in the range of ArcelorMittal’s major capital expenditures in 2022 included the
$2.8 billion to $3.1 billion. The previously announced strategic following projects: ArcelorMittal Vega Do Sul expansion, Serra
capital expenditure envelope has $2.5 billion outstanding to be Azul mine direct reduction pellet feed plant, ArcelorMittal Liberia
completed by 2026. The Company expects strategic projects mine phase 2 premium product expansion, ArcelorMittal Mexico
capital expenditures to be in the range of $1.4 to $1.5 billion in new hot strip mill, Steelanol project in Ghent, as well as the hot
2024 as compared to $1.4 billion in 2023, largely due to catch strip mill modernization and #5 CGL conversion to AluSi® in
up on previously announced projects. See “Properties and ArcelorMittal Dofasco (completed in the second and third
capital expenditures—Capital expenditures” and "—Outlook" quarter of 2022 respectively). Capital expenditures on strategic
below. projects and decarbonization projects totaled $0.7 billion and
$0.2 billion, respectively, in 2022. Capital expenditures outside
ArcelorMittal’s major capital expenditures in 2023 included the of strategic projects and decarbonization projects (which
following projects: ArcelorMittal Vega Do Sul expansion, Serra includes cost reduction plans and environment projects as well
Azul mine direct reduction pellet feed plant, ArcelorMittal Liberia as general maintenance capital expenditures) amounted to $2.6
mine phase 2 premium product expansion, Andra Pradesh billion in 2022.
(India) renewable energy project, Barra Mansa section mill,
Mardyck (France) new electrical steels production facilities, Las Net cash provided by other investing activities for the year
Truchas mines (Mexico) revamping and capacity increase, ended December 31, 2022 included $1.0 billion cash outflow in
Monlevade sinter plant, blast furnace and melt shop. See also connection with several acquisitions, including mainly an 80%
“Properties and capital expenditures—Capital expenditures— interest in voestalpine’s world-class Hot Briquetted Iron ("HBI")
Completed and Ongoing projects”. plant located in Corpus Christi, Texas ($805 million net of cash
acquired of $12 million), the UK based scrap recycling business
Net cash used in other investing activities for the year ended John Lawrie Metals Limited ($43 million net of cash acquired of
December 31, 2023 included a cash outflow of $2,193 million in $5 million), Architectural Steel Limited, a UK based
connection with the acquisition of Companhia Siderúrgica do manufacturer of bespoke metal fabrications and flashings for
Pecém, a cash outflow of $152 million (net of $4 million of cash building envelopes ($39 million net of cash acquired of $6
acquired) for two acquisitions relating to ArcelorMittal million) and three companies (ALBA Metall Süd Rhein-Main
Downstream Solutions within the Europe reportable segment, GmbH, ALBA Electronics Recycling GmbH and ALBA Metall Süd
outflows of $36 million and $25 million for investments in Boston Franken GmbH) active in ferrous and non-ferrous metal
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recycling in Germany ($45 million net of cash acquired of $9 maturity. Such outflows were partly offset by an inflow from
million). Net cash used in other investing activities for the year issuance of bonds for a total amount of $2.8 billion including
ended December 31, 2022 included also $25 million investment $2.2 billion USD notes with two tranches (five-year $1.2 billion
in nuclear innovation company TerraPower and $17.5 million in tranche at 6.55% and a ten-year $1.0 billion tranche at 6.80%)
Form Energy Inc. through the Company's XCarb® Innovation and €600 million ($580 million) four-year notes at 4.875%, an
Fund. inflow from offering of five Schuldschein loans for a total amount
of €725 million ($755 million) with maturities of 3 and 5 years, an
Net cash used in investing activities was $0.3 billion for the year inflow pursuant to drawdown on European Investment Bank
ended December 31, 2021. Capital expenditures were $3.0 facility of €280 million ($291 million) and a net inflow of $335
billion for the year ended December 31, 2021. Capital million from commercial paper. Net cash used in financing
expenditures for the year ended December 31, 2021 were activities for the year ended December 31, 2022 also included
marginally above the initial guidance of $2.8 billion but slightly $663 million in dividend payments (see below) and $160 million
below the revised guidance of $3.2 billion provided after the for lease payments and other financing activities.
third quarter of 2021.
Net cash used in financing activities was $10.9 billion for the
ArcelorMittal’s major capital expenditures in 2021 included the year ended December 31, 2021. In 2021, net cash used in
following projects: ArcelorMittal Mexico new hot strip mill, the hot financing activities included a $5.2 billion outflow with respect to
strip mill modernization in ArcelorMittal Dofasco, new pellet plant the Company's five share buyback programs, $3.6 billion of net
in AMKR and Steelanol project in Ghent. Capital expenditures payments relating to short and long-term debt (including $2.3
included $0.1 billion related to ArcelorMittal Italia which has billion in payments of long-term debt and $1.7 billion in
been deconsolidated from April 14, 2021 onwards. payments of short-term debt), $1.2 billion for the early
redemption of certain MCNs, $572 million of dividend payments
Net cash provided by other investing activities of $2.7 billion for
(of which $312 million paid to ArcelorMittal shareholders and
the year ended December 31, 2021 included mainly $2.7 billion
$260 million paid to non-controlling shareholders) and $398
proceeds from the sale of common shares and redemption of
million for lease payments and other financing activities.
preferred shares of Cleveland-Cliffs and refund of $0.3 billion
cash collateral related to the ArcelorMittal USA disposal (see Dividend payments during the year ended December 31, 2023
below) offset by other investments including $80 million of $531 million included $369 million paid to ArcelorMittal
investments through the XCarb™ innovation fund and $25m for shareholders and $162 million paid to non-controlling
the acquisition of the remaining 67% interest in Condesa. shareholders in subsidiaries. Dividend payments during the year
ended December 31, 2022 of $663 million included $332 million
Net cash used in financing activities
paid to ArcelorMittal shareholders and $331 million paid to non-
Net cash used in financing activities was $3.7 billion for the year
controlling shareholders in subsidiaries. Dividends during the
ended December 31, 2023, as compared to $0.5 billion for the
year ended December 31, 2021 of $572 million included $312
year ended December 31, 2022. In 2023, net cash used in
million paid to ArcelorMittal shareholders and $260 million were
financing activities included primarily a €1,117 million
paid to non-controlling shareholders in subsidiaries.
($1,207 million) outflow related to repayment of euro
denominated notes at maturity, a $1,208 million outflow relating Equity
to share buybacks, and a $340 million outflow related to the Equity attributable to the equity holders of the parent increased
partial redemption of mandatory convertible bonds. Net cash to $54.0 billion as of December 31, 2023 from $53.2 billion as of
used in financing activities for the year ended December 31, December 31, 2022 primarily due to net income attributable to
2023 also included $531 million in dividend payments (see the equity holders of the parent of $0.9 billion and $2.4 billion
below) and $253 million for lease payments and other financing foreign exchange gains, partly offset by $0.1 billion actuarial
activities. For further details related to capital markets, liability loses, $1.2 billion decrease due to share buyback programs,
management transactions and debt repayments in 2023, see and $0.4 billion dividend payments. See note 11 to
note 6.1.2 to the consolidated financial statements. ArcelorMittal’s consolidated financial statements for the year
ended December 31, 2023.
Net cash used in financing activities was $0.5 billion for the year
ended December 31, 2022, as compared to $10.9 billion for the Equity attributable to the equity holders of the parent increased
year ended December 31, 2021. In 2022, net cash used in to $53.2 billion as of December 31, 2022 from $49.1 billion as of
financing activities mainly included a $2.9 billion outflow with December 31, 2021 primarily due to net income attributable to
respect to the Company's two completed (and the third one the equity holders of the parent of $9.3 billion and $0.6 billion
ongoing) share buyback programs and an outflow of €486 actuarial gains, partly offset by a $2.9 billion decrease due to
million ($551 million) for the repayment of outstanding bonds at share buyback programs, $2.6 billion foreign exchange losses
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and $0.3 billion dividend payments. See note 11 to financial institutions, as well as brokers, major energy producers
ArcelorMittal’s consolidated financial statements for the year and consumers.
ended December 31, 2022.
As part of its financial risk management activities, ArcelorMittal
Disclosures about market risk uses derivative instruments to manage its exposure to changes
ArcelorMittal is exposed to a number of different market risks in interest rates, foreign exchange rates and commodities
arising from its normal business activities. Market risk is the prices. These instruments are principally interest rate, currency
possibility that changes in raw materials prices, foreign currency and commodity swaps, spots and forwards. ArcelorMittal may
exchange rates, interest rates, base metal prices (zinc, nickel, also use futures and options contracts.
aluminum and tin) and energy prices (oil, natural gas and
Counterparty risk
power) will adversely affect the value of ArcelorMittal’s financial
ArcelorMittal has established detailed counterparty limits to
assets, liabilities or expected future cash flows.
mitigate the risk of default by its counterparties. The limits
The fair value information presented below is based on the restrict the exposure ArcelorMittal may have to any single
information available to management as of the date of the counterparty. Counterparty limits are calculated taking into
consolidated statements of financial position. Although account a range of factors that govern the approval of all
ArcelorMittal is not aware of any factors that would significantly counterparties. The factors include an assessment of the
affect the estimated fair value amounts, such amounts have not counterparty’s financial soundness and its ratings by the major
been comprehensively revalued for purposes of this annual rating agencies, which must be of a high quality. Counterparty
report since that date, and therefore, the current estimates of limits are monitored on a periodic basis.
fair value may differ significantly from the amounts presented.
All counterparties and their respective limits require the prior
The estimated fair values of certain financial instruments have
approval of the Corporate Finance and Tax Committee.
been determined using available market information or other
Standard agreements, such as those published by the
valuation methodologies that require considerable judgment in
International Swaps and Derivatives Association, Inc. (ISDA) are
interpreting market data and developing estimates.
negotiated with all ArcelorMittal trading counterparties.
See note 6 to ArcelorMittal’s consolidated financial statements
Currency exposure
for quantitative information about risks relating to financial
ArcelorMittal seeks to manage each of its entities’ exposure to
instruments, including financial instruments entered into
its operating currency. For currency exposure generated by
pursuant to the Company’s risk management policies.
activities, the conversion and hedging of revenues and costs in
Risk management foreign currencies is typically performed using currency
ArcelorMittal has implemented strict policies and procedures to transactions on the spot market and forward market. For some
manage and monitor financial market risks. Organizationally, of its business segments, ArcelorMittal hedges future cash
supervisory functions are separated from operational functions, flows.
with proper segregation of duties. Financial market activities are
Because a substantial portion of ArcelorMittal’s assets, liabilities,
overseen by the CEO and CFO, the Corporate Finance and Tax
sales and earnings are denominated in currencies other than
Committee and the Executive Office.
the U.S. dollar (its reporting currency), ArcelorMittal has
All financial market risks are managed in accordance with the exposure to fluctuations in the values of these currencies
Treasury and Financial Risk Management Policy. These risks relative to the U.S. dollar. These currency fluctuations,
are managed centrally through Group Treasury by a group especially the fluctuation of the value of the U.S. dollar relative
specializing in foreign exchange, interest rate, commodity, to the euro, the Canadian dollar, Brazilian real, South African
internal and external funding and cash and liquidity rand, Argentine peso, Indian rupee, Polish zloty and Ukrainian
management. hryvnia, as well as fluctuations in the currencies of the other
countries in which ArcelorMittal has significant operations and/or
All financial market hedges are governed by ArcelorMittal’s sales, could have a material impact on its results of operations.
Treasury and Financial Risk Management Policy, which includes
a delegated authority and approval framework, sets the ArcelorMittal faces transaction risk, where its businesses
boundaries for all hedge activities and dictates the required generate sales in one currency but incur costs relating to that
approvals for all Treasury activities. Hedging activity and limits revenue in a different currency. For example, ArcelorMittal’s
are monitored on an ongoing basis. ArcelorMittal enters into subsidiaries may purchase raw materials, including iron ore and
transactions with numerous counterparties, mainly banks and coking coal, in U.S. dollar, but may sell finished steel products in
other currencies. Consequently, an appreciation of the U.S.

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dollar will increase the cost of raw materials, thereby negatively instruments are recognized in the consolidated statements of
impacting the Company’s operating margins, unless the operations or in equity according to nature and effectiveness of
Company is able to pass along the higher cost in the form of the hedge.
higher selling prices.
Derivatives used are non-exchange-traded derivatives such as
ArcelorMittal faces foreign currency translation risk, which arises over-the-counter swaps, options and forward contracts.
when ArcelorMittal translates the financial statements of its
subsidiaries, denominated in currencies other than the U.S. For the Company’s tabular presentation of information related to
dollar for inclusion in ArcelorMittal’s consolidated financial its market risk sensitive instruments, please see note 6 to the
statements. consolidated financial statements.

The tables below illustrate the impact of an appreciation and a Interest rate sensitivity
depreciation of the U.S. dollar of 10% against the euro, on the Cash balances, which are primarily composed of euros and U.S.
conversion of the net debt of ArcelorMittal into U.S. dollar as of dollar, are managed according to the short-term (up to one year)
December 31, 2023 and December 31, 2022. The impact on net guidelines established by senior management on the basis of a
debt denominated in a currency different than the euro, is daily interest rate benchmark, primarily through short-term
computed based on historical data of how such currency would currency swaps, without modifying the currency exposure.
move against the U.S. dollar when the U.S. dollar appreciates/
Interest rate risk on debt
depreciates 10% against the euro. A positive sign means an
ArcelorMittal’s policy consists of incurring debt at fixed and
increase in the net debt.
floating interest rates, primarily in U.S. dollar and euros
according to general corporate needs. Interest rate and currency
Impact on net debt Impact on net debt
translation of a 10% translation of a 10% swaps are utilized to manage the currency and/or interest rate
appreciation of the depreciation of the exposure of the debt.
U.S. dollar against the U.S. dollar against the
Currency euro euro
For the Company’s tabular presentation of the fair values of its
In 2023 in $ equivalent in $ equivalent
(in millions) (in millions) short and long term debt, please see note 6 to the consolidated
Argentine peso (57) 46 financial statements.
Brazilian real 5 (7)
Commodity price risk
Euro 93 (93) ArcelorMittal utilizes a number of exchange-traded commodities
Indian rupee — — in the steel-making process. In certain instances, ArcelorMittal is
Moroccan dirham 7 (9) the leading consumer worldwide of certain commodities. In
Polish zloty (33) 48 some businesses and in certain situations, ArcelorMittal is able
Other to pass this exposure on to its customers. The residual
7 (8)
exposures are managed as appropriate.

Impact on net debt Impact on net debt Financial instruments related to commodities (base metals,
translation of a 10% translation of a 10%
appreciation of the depreciation of the energy, freight and emission rights) are utilized to manage
U.S. dollar against the U.S. dollar against the ArcelorMittal’s exposure to price fluctuations.
Currency euro euro
In 2022 in $ equivalent in $ equivalent Hedges in the form of swaps and options are utilized to manage
(in millions) (in millions)
the exposure to commodity price fluctuations.
Argentine peso 55 (78)
Brazilian real 1 (1) In case of natural gas, ArcelorMittal has a portfolio of
Euro 68 (68) steelmaking assets with approximately 80% of steel being
Indian rupee 5 (5) produced through the BF-BOF route which means resulting by-
Moroccan dirham product gases are recycled and utilized as a substitute for
7 (9)
natural gas covering a large part of the Company's needs.
Polish zloty (9) 12
Overall, the Company has a policy of hedging a portion of its
Other — — natural gas requirements with other strategic long term hedges
in place.
Derivative instruments
ArcelorMittal uses derivative instruments to manage its With respect to emission rights, in 2023, the Company has
exposure to movements in interest rates, foreign exchange rates fulfilled its shortfall requirements through the utilization of some
and commodity prices. Changes in the fair value of derivative
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of its hedges and through some spot purchases by strategically The Company remains positive on the medium/long-term steel
buying certificates in a planned manner. demand outlook and, supported by its strong financial position
remains focused on executing its strategy of growth with capital
For the Company’s tabular presentation of information related to returns.
its market risk sensitive instruments, please see note 6 to the
consolidated financial statements. Capital expenditure is expected to remain within the range of
$4.5 billion to $5.0 billion (of which $1.4 billion to $1.5 billion is
In respect of non-exchange traded commodities, ArcelorMittal is expected as strategic growth capital expenditure).
exposed to volatility in the prices of raw materials such as iron
ore (which is generally correlated with steel prices with a time All information that is not historical in nature and disclosed
lag) and coking coal. This exposure is almost entirely managed under “Operating and financial review”, and in particular in this
through long-term contracts, however some hedging of iron ore Outlook section, is deemed to be a forward-looking statement. A
exposures is made through derivative contracts. For a more detailed discussion of principal risks and uncertainties which
detailed discussion of ArcelorMittal’s iron ore and coking coal may cause actual results and events to differ materially from
purchases, see “Operating and financial review —Key factors such forward-looking statements is included in the section “Risk
affecting results of operations—Raw materials”. factors”.

Outlook MANAGEMENT AND EMPLOYEES

As anticipated, apparent demand conditions are now showing
Directors and senior management
signs of improvement as the destocking phase reaches maturity.
Despite continued headwinds to real demand, in countries Board of Directors
outside of China, ASC is expected to grow by 3.0% to 4.0% in ArcelorMittal places a strong emphasis on corporate
2024 as compared to 2023. governance. The Board of Directors is composed of ten
directors, of which six are independent directors. Mrs. Karyn
ArcelorMittal expects the following demand dynamics by key
Ovelmen is the Lead Independent Director. The Board of
region:
Directors has three committees: The Audit & Risk Committee,
• In the U.S., although real demand growth is expected to the Appointment, Remuneration and Corporate Governance
remain lackluster due to the lagged impact of higher interest Committee ("ARCG Committee") and the Sustainability
rates and the destocking that impacted apparent demand in Committee. Prior to July 28, 2021, the former ARCG and
2023, it is not expected to continue in 2024. As a result, Sustainability Committee carried out the roles of both of the
ASC of flat products is expected to grow within the range of current Appointments, Remuneration and Corporate
1.5% to 3.5% in 2024; Governance Committee and the Sustainability Committee. The
ARCG Committee and the Audit & Risk Committee are
• In Europe, while the Company assumes a marginal decline comprised exclusively of independent directors. There are two
in real demand, mainly construction, the destocking that the independent directors on the Sustainability Committee.
impacted apparent demand in 2023 is not expected to
continue in 2024. As a result, apparent demand for flat The annual general meeting of shareholders on May 2, 2023
products is expected to improve, with growth within a range acknowledged the expiration of the terms of office of Mr.
of 2.0% to 4.0% in 2024; Lakshmi N. Mittal, Mr. Aditya Mittal, Mr. Michel Wurth and Mr.
Etienne Schneider. At the same meeting, the shareholders re-
• In Brazil, the Company expects a gradual rebound in real elected Mr. Lakshmi N. Mittal, Mr. Aditya Mittal, Mr. Michel Wurth
steel consumption in 2024 to support an ASC growth within and Mr. Etienne Schneider and elected Mrs. Patricia Barbizet for
a range of 0.5% to 2.5%; a new term of three years each.

• In India, the Company expects another strong year with In the most recent assessment of the Company’s leadership
ASC growth within the range of 6.5% to 8.5%; structure, the ARCG Committee reviewed the key duties and
responsibilities of the Company’s Executive Chairman and its
• In China, economic growth is expected to weaken. Despite Lead Independent Director as follows:
continued weakness in real estate, the impact of
announced stimulus is expected to support offsetting
demand growth from infrastructure spending. As a result,
steel consumption is expected to be relatively stable/slightly
positive (between 0% to 2.0%).

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Executive Chairman Lead Independent Director

* Chairs the Board of Directors' and shareholders' meetings * Provides independent leadership to the Board of Directors
* Works with the Lead Independent Director to set agenda for the Board of * Presides at executive sessions of independent directors
Directors and reviews the schedule of the meetings

* Serves as a public face of the Board of Directors and of the Company * Advises the Executive Chairman of any decisions reached and
suggestions made at the executive sessions, as appropriate
* Serves as a resource for the Board of Directors * Coordinates the activities of the other independent directors
* Guides discussions at the Board of Directors meetings and encourages * Oversees Board of Directors' governance processes, including
directors to express their positions succession planning and other governance-related matters
* Communicates significant business developments and time-sensitive matters * Liaison between the Executive Chairman and the other independent
to the Board of Directors directors

* Is responsible for managing day-to-day business and affairs of the Company * Calls meetings of the independent directors when necessary and
appropriate
* Interacts with the CEO within the Executive Office of the Company and * Leads the Board of Directors’ self-evaluation process and such other
frequently meets stakeholders and provides feedback to the Board of Directors duties as are assigned from time to time by the Board of Directors

The members of the Board of Directors are set out below. Henk Scheffer is the Company Secretary and, accordingly, acts as secretary
of the Board of Directors.

Name Age5 Date of joining the Board6 End of Term Position within ArcelorMittal5
Lakshmi N. Mittal 73 May 1997 May 2026 Executive Chairman of the Board of Directors
Aditya Mittal8 47 June 2020 May 2026 Director and Chief Executive Officer
Vanisha Mittal Bhatia7 43 December 2004 May 2025 Director
Tye Burt2, 3, 4 66 May 2012 May 2024 Director
Michel Wurth3 69 May 2014 May 2026 Director
1, 2, 4
Karyn Ovelmen 60 May 2015 May 2024 Lead Independent Director
Karel de Gucht1, 4 69 May 2016 May 2025 Director
Etienne Schneider1, 4 52 June 2020 May 2026 Director
Clarissa Lins2, 3, 4 56 June 2021 May 2024 Director
Patricia Barbizet1, 4 68 May 2023 May 2026 Director

1. Member of the Audit & Risk Committee.

2. Member of the ARCG Committee.
3. Member of the Sustainability Committee.
4. Non-executive and independent director.
5. Age and position as of December 31, 2023.
6. Date of joining the Board of ArcelorMittal or, if prior to 2006, its predecessor Mittal Steel Company NV.
7. Ms. Vanisha Mittal Bhatia is the daughter of Mr. Lakshmi N. Mittal and sister of Mr. Aditya Mittal.
8. Mr. Aditya Mittal is the son of Mr. Lakshmi N. Mittal and brother of Ms. Vanisha Mittal Bhatia.

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Lakshmi N. Mittal
Executive Chairman

73 years old Expertise and experience

Nationality: Indian Lakshmi N. Mittal is the Executive Chairman of ArcelorMittal since February 2021. He was previously the Chairman and Chief
Executive Officer of ArcelorMittal. He is a renowned global businessman who serves on the boards of various companies and
Date of first election: advisory councils. He is an active philanthropist engaged in the fields of education and child health. Mr. Mittal was born in
May 1997 Sadulpur in Rajasthan in 1950. He graduated from St Xavier’s College in Kolkata, where he received a Bachelor of
Commerce degree. He has received numerous awards for his contribution to the steel industry over the years and recently, in
Term start date: April 2018, Mr. Mittal was awarded by the American Iron and Steel Institute with the Gary medal award recognizing his great
May 2023 contribution to the steel industry. He is widely recognized for successfully integrating many company acquisitions in North
America, South America, Europe, South Africa and the CIS. Mr. Mittal is Chairman of the board of Aperam and a member of
Term end date: May 2026 the board of Goldman Sachs. He previously sat on the board of Airbus N.V. He is a member of the Foreign Investment Council
in Kazakhstan, the National Investment Council of Ukraine, the Global CEO Council of the Chinese People’s Association for
Friendship with Foreign Countries, the World Economic Forum’s International Business Council, the World Steel Association’s
Executive Committee, the European Round Table of Industrialists, the Indian School of Business and a member of the board
of Trustees of Cleveland Clinic. Mr. Mittal is the father of Aditya Mittal (who is Chief Executive Officer and a non-independent
Director of ArcelorMittal) and Vanisha Mittal Bhatia (who is a Non-independent Director of ArcelorMittal). Mr. Mittal is married
to Mrs. Usha Mittal. Mr. Mittal is a citizen of India.

Aditya Mittal
Chief Executive Officer ("CEO")

47 years old Expertise and experience

Nationality: Indian Aditya Mittal is the Chief Executive Officer since February 2021 and Director of ArcelorMittal. He was previously the President
and Chief Financial Officer ("CFO") of ArcelorMittal. Following the formation of ArcelorMittal in 2006, Aditya held various senior
Date of first election: leadership roles, including managerial oversight of the Group’s flat carbon steel businesses in the Americas and Europe, in
June 2020 addition to his role as CFO and membership of the Group Management Board. He sees climate change as ArcelorMittal’s top
strategic issue and wants the Company to lead the decarbonization of the steel industry. He is an active philanthropist with a
Term start date: particular interest in child health. Together with his wife Megha, he is a significant supporter of the Great Ormond Street
May 2023 Children’s Hospital in London, having funded the Mittal Children’s Medical Centre, and in India, the couple work closely with
UNICEF, having funded the first ever country-wide survey into child nutrition, the results of which are being used by the
Term end date: May 2026 Government of India to inform relevant policy. Aditya serves on the boards of ArcelorMittal, Aperam, and Iconiq Capital and is
Chairman of ArcelorMittal Nippon Steel India and Chairman of HMEL. He is also a trustee at Brookings Institution, a member
of Harvard University’s Global Advisory Council. He holds a Bachelor’s degree in Economics with concentrations in Strategic
Management and Corporate Finance from the Wharton School in Pennsylvania, United States. He is the son of Mr. Lakshmi
N. Mittal and brother of Ms. Vanisha Mittal Bhatia. Mr. Aditya Mittal is a citizen of India.

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Vanisha Mittal Bhatia

Non-independent Director

43 years old Expertise and experience

Nationality: Indian Vanisha Mittal Bhatia is a non-independent Director of ArcelorMittal. She was appointed as a member of the LNM Holdings
Board of Directors in June 2004. Ms. Vanisha Mittal Bhatia was appointed to Mittal Steel’s Board of Directors in December
Date of first election: 2004, where she worked in the Procurement department leading various initiatives including "total cost of ownership
December 2004 program". She joined Aperam in April 2011 and since has held the position of Chief Strategy Officer. She has a Bachelor of
Sciences from the European Business School. Ms. Vanisha Mittal Bhatia is a citizen of India. Ms. Vanisha Mittal Bhatia is the
Term start date: daughter of Mr. Lakshmi N. Mittal and the sister of Mr. Aditya Mittal.
May 2022

Term end date: May 2025

Tye Burt
Non-executive and independent Director

66 years old Expertise and experience

Nationality: Canadian Tye Burt, is a non-executive and independent Director of ArcelorMittal and a member of the ARCG Committee as well as of
the Sustainability Committee. He was appointed President and Chief Executive Officer of Kinross Gold Corporation in March
Date of first election: 2005. He held this position until August 1, 2012. Kinross is listed on the New York Stock Exchange and the Toronto Stock
May 2012 Exchange. Mr. Burt was also a member of the board of directors of Kinross, where he had overall responsibility for the health
and safety program, now contributing this expertise on health and safety to the ArcelorMittal’s Board of Directors. Mr. Burt has
Term start date: broad experience in the global mining industry, specializing in corporate finance, business strategy and mergers and
June 2021 acquisitions. Prior to joining Kinross, he held the position of Vice Chairman and Executive Director of Corporate Development
at Barrick Gold Corporation. He was President of the Cartesian Capital Group from 2000 to 2002; Chairman of Deutsche
Term end date: May 2024 Bank Canada and Deutsche Bank Securities Canada; Global Managing Director of Global Metals and Mining for Deutsche
Bank AG from 1997 to 2000; and Managing Director and Co-Head of the Global Mining Group at BMO Nesbitt Burns from
1995 to 1997, holding various other positions at BMO Nesbitt Burns from 1986 to 1995. Mr. Burt is the Chair and Principal at
Carbon Arc Capital Investments Corp. and was the Life Sciences Research Campaign Chair of the University of Guelph's
Better Planet Project. Mr. Burt is a member of the Board of Directors of Boart Longyear, a global leader in the drilling services
and equipment industry. He is a graduate of Osgoode Hall Law School, a member of the Law Society of Ontario, and he holds
a Bachelor of Arts degree from the University of Guelph. Mr. Burt is a citizen of Canada.

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Michel Wurth
Non-independent Director

69 years old Expertise and experience

Nationality: Luxembourgish Michel Wurth is a non-independent Director of ArcelorMittal and a member of the Sustainability Committee. He joined Arbed in
1979 and held a variety of functions before joining the Arbed Group Management Board and becoming its chief financial
Date of first election: officer in 1996. The merger of Aceralia, Arbed and Usinor, leading to the creation of Arcelor in 2002, led to Mr. Wurth’s
May 2014 appointment as Senior Executive Vice President and Chief Financial Officer of Arcelor. He became a member of
ArcelorMittal’s Group Management Board in 2006, responsible for Flat Carbon Europe, Global R&D, Distribution Solutions
Term start date: and Long Carbon Worldwide respectively. Michel Wurth retired from the GMB in April 2014 and was elected to ArcelorMittal’s
May 2023 board of directors in May 2014. He holds a Law degree from the University of Grenoble, France, and a degree in Political
Science from the Institut d’Études Politiques de Grenoble as well as a Master’s of Economics from the London School of
Term end date: May 2026 Economics, UK. Mr. Wurth is also doctor of laws honoris causa of the Sacred Heart University, Luxembourg. Mr. Wurth is
Chairman of ArcelorMittal Luxembourg S.A. (a wholly owned subsidiary of ArcelorMittal) as well as Vice Chairman of the
supervisory board of Dillinger Hütte AG and Dillinger Hütte Saarstahl AG (associates of ArcelorMittal). Mr. Wurth is a Board
member of Orion Engineered Carbon S.A. a global company active in the black carbon industry, listed on the NASDAQ. Mr.
Wurth served as Chairman of the Luxembourg Chamber of Commerce between May 2004 and May 2019 and is a member of
the Council of the Central Bank of Luxembourg. He is also non-executive Chairman of Paul Wurth Real Estate S.A. and
member of the supervisory board of SMS Group (the controlling shareholder of Paul Wurth Real Estate S.A.), as well as non-
executive Chairman of BIP Investment Partners S.A. and BIP Capital Partners S.A., and non-executive Board member of
Brasserie Nationale. SMS Group is a leading family owned equipment and engineering supplier for the steel and non-ferrous
metal producing industry. BIP Investment Partners and BIP Capital Partners S.A. are Luxembourg based companies
organized as investment funds investing in small and mid-cap private equity and Brasserie Nationale is a privately owned
brewery based in Luxembourg. Mr. Wurth is vice-chairman of the Luxembourg Red Cross. Mr. Wurth is a citizen of
Luxembourg.

Karyn Ovelmen
Non-executive and independent Director

60 years old Expertise and experience

Nationality: USA Karyn Ovelmen is Lead Independent Director of ArcelorMittal as well as the Chairwoman of the Audit & Risk Committee and
of the ARCG Committee. From January 2019 to December 31, 2019, Mrs. Ovelmen was the Gas Power Transformation
Date of first election: Leader for the General Electric Company. Prior to that, she served as Executive Vice President and Chief Financial Officer of
May 2015 Flowserve, a position that she held from June 2015 to February 2017. Previously, she also served as Chief Financial Officer
and Executive Vice President of LyondellBasell Industries NV from 2011 to May 2015, as Executive Vice President and Chief
Term start date: Financial Officer of Petroplus Holdings AG from May 2006 to September 2010 and as Executive Vice President and Chief
June 2021 Financial Officer of Argus Services Corporation from 2005 to 2006. Prior to that, she was Vice President of External Reporting
and Investor Relations for Premcor Refining Group Inc. She also spent 12 years with PricewaterhouseCoopers, primarily
Term end date: May 2024 serving energy industry accounts. Mrs. Ovelmen is a member of the Hess Corporation Board of Directors and a member of
the Audit Committee as of November 4, 2020. She is also CFO of Newmont, a company listed on the New York Stock
Exchange, as of May 18, 2023. Mrs. Ovelmen was a member of the Gates Industrial Corporation plc. Board of Directors as a
non-executive director and was a member of their Audit Committee from December 2017 to March 2019. Mrs. Ovelmen holds
a Bachelor of Arts degree from the University of Connecticut, USA, and is a Certified Public Accountant ("CPA"). Mrs.
Ovelmen is a citizen of the United States of America.

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Karel de Gucht
Non-executive and independent Director

69 years old Expertise and experience

Nationality: Belgian Karel de Gucht is a non-executive and independent Director and a member of the Audit & Risk Committee. Mr. De Gucht is a
Belgian Minister of State. He was the European Commissioner for Trade in the 2nd Barroso Commission from 2010 to 2014
Date of first election: and for Development and Humanitarian Aid in the first Barroso Commission from 2009 to 2010. Previously, Mr. De Gucht
May 2016 served as Belgium's Minister of Foreign Affairs from 2004 to 2009 and Vice Prime Minister of Belgium from 2008 to 2009. In
addition, in 2006, he was the Chairman in Office of the Organization for Security and Cooperation in Europe (OSCE) and
Term start date: Member of the Security Council of the United Nations from 2007 to 2008. Since 1991, Mr. De Gucht has been a Professor of
May 2022 Law at the VUB (the Dutch-speaking Free University Brussels). He is currently a member of the European Advisory Board of
CVC Capital Partners, a member of the board of directors of the listed company Proximus NV and the president of the
Term end date: May 2025 Brussels School of Governance at the VUB (Free University Brussel), a leading learning and research institute. Karel De
Gucht is a member of the Board of Directors of nv EnergyVision, a non-listed company active in renewables. In the course of
2021, Mr. De Gucht has been nominated Chairman of the Board of YOUSTON NV, a non-listed Belgian company specialized
in archiving, digitalization and processing. Mr. De Gucht holds a Master of Law degree from the VUB and is a Belgian citizen.

Etienne Schneider
Non-executive and independent Director

52 years old Expertise and experience

Nationality: Luxembourgish Etienne Schneider is a non-executive and independent Director and a member of the Audit & Risk Committee. Etienne
Schneider joined the government of Luxembourg in 2012 as Minister of the Economy and Foreign Trade before being
Date of first election: appointed Deputy Prime Minister, Minister of the Economy, Minister of Internal Security and Minister of Defense in 2013. In
June 2020 2018, Mr. Schneider became Deputy Prime Minister, Minister of the Economy and Minister of Health and in February 2020
retired from politics. He has previously filled several positions as a senior civil servant, such as a research assistant at the
Term start date: European Parliament in Brussels, economist for the LSAP parliamentary group in the Chamber of Deputies and project leader
May 2023 with NATO in Brussels. He also served as a government advisor responsible for various Directorates. Mr. Schneider became
a member of the executive board of several companies, such as the Société électrique de l’Our (SEO), Enovos International
Term end date: May 2026 SA, Enovos Deutschland AG and the National Credit and Investment Company (SNCI). Upon being appointed minister in
2012, he resigned from all of these positions. In 2021, Mr. Schneider became president of the board of LuxTP, a
Luxembourgish affilate of the Belgian construction company Besix Group in which he holds a position as independent board
member since 2020. In 2022, Mr. Schneider became a board member of the non-listed Luxemburgish company Mikro Kapital
where he has served as member of the supervisory board since January 2022. Mr. Schneider holds a degree from the Institut
Catholique des Hautes Etudes Commerciales (ICHEC) in Brussels and from Greenwich University in London in commercial
and financial sciences. Mr. Schneider is a citizen of Luxembourg.

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Clarissa Lins
Non-executive and independent Director

56 years old Expertise and experience

Nationality: Brazilian Clarissa Lins is a non-executive and independent Director of ArcelorMittal as well as the Chairwoman of the Sustainability
Committee. Mrs. Lins is a senior executive with consolidated experience in strategy, sustainability, and corporate governance.
Date of first election: With a distinguished education background in economy, she worked on relevant projects in the public sector at the beginning
June 2021 of her career - she was part of Brazil’s Ministry of Finance team that produced the economic stabilization program known as
the Real Plan in 1994, under President Cardoso. She also served as an Advisor to the President of Brazil’s BNDES
Term start date: Development Bank, participating in the structuring of the country’s large-scale privatization projects from 1995 to 1999. She
June 2021 was head of Corporate Strategy at Petrobras from 1999 to 2002, when the state-owned oil and gas company shifted its
strategy and improved its corporate governance practices while doing an IPO at the NYSE. Mrs. Lins moved her focus more
Term end date: May 2024 specifically towards Sustainability in 2004, when she joined the FBDS Fundação Brasileira para o Desenvolvimento
Sustentável (Brazilian Foundation for Sustainable Development). In 2013, she founded the consultancy Catavento, advising
corporations in the areas of strategy and sustainability. Mrs. Lins was the President of the Brazilian Institute of Petroleum and
Gas (IBP) from November 2019 till March 2021, after serving as Executive Director for more than 3 years. She serves on
Boards and Committees of leading companies operating in Brazil - including Suzano's Sustainability Committee (the world’s
largest producer of market pulp), the Board of Directors of Votorantim Cimentos and Vibra Energia (listed at the Brazilian
stock exchange). Other companies in which she has held relevant Board Committee positions include Shell, Vale and
Petrobras. Mrs. Lins is a citizen of Brazil.

Patricia Barbizet
Non-executive and independent Director

68 years old Expertise and experience

Nationality: French Mrs. Patricia Barbizet is a non-executive and independent Director and a member of the Audit & Risk Committee. Mrs.
Barbizet is Chief Executive Officer of Temaris & Associés, lead independent director of Pernod Ricard (listed company). In
Date of first election: May 2023 addition, she is chairwoman of AFEP (Association française des entreprises privées) and a member of the Board of Directors
of CMA CGM. She started her career as International Treasurer in Renault Véhicules Industriels, and then as Chief Financial
Term start date: May 2023 Officer of Renault Crédit International. In 1989, Mrs. Barbizet joined the Groupe Pinault as Chief Financial Officer. She was
Chief Executive Officer of Artémis, the investment company of the Pinault family, from 1992 to 2018. Mrs. Barbizet was Chief
Executive Officer and chairwoman of Christie’s International from 2014 to 2016, served as a qualified independent member on
Term end date: May 2026 the Boards of PSA Peugeot-Citroen, Air France-KLM, Groupe Bouygues, FNAC-DARTY, AXA, Total, as well as chairwoman of
the Investment Committee of the “Fond Stratégique d’Investissement” from 2008 until 2013, and chairwoman of the "Comité
de surveillance des investissements d'avenir" of the Secrétariat Général pour l'Investissement (SGPI) until 2023. Mrs.
Barbizet graduated from the École Supérieure de Commerce de Paris (ESCP Business School). Mrs. Barbizet is a citizen of
France.

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Senior management
As of December 31, 2023, ArcelorMittal’s senior management responsible for the implementation of the Company strategy,
was comprised of the Executive Office supported by nine other overall management of the business and all operational
Executive Officers. ArcelorMittal’s Executive Office was decisions.
comprised of the Executive Chairman, Mr. Lakshmi N. Mittal and
the CEO, Mr. Aditya Mittal. Together, the Executive Officers are

Name Age Position

Lakshmi N. Mittal1 73 Executive Chairman of ArcelorMittal
Aditya Mittal1 47 Chief Executive Officer of ArcelorMittal
1
Genuino Christino 52 Chief Financial Officer of ArcelorMittal
Stefan Buys1 52 Executive Vice President, CEO ArcelorMittal Mining
1
Jefferson de Paula 65 Executive Vice President, CEO ArcelorMittal South America Long
1
Geert Van Poelvoorde 58 Executive Vice President, CEO ArcelorMittal Europe
John Brett1 58 Executive Vice President, CEO ArcelorMittal North America
1
Bradley Davey 59 Executive Vice President and Head of Corporate Business Optimization
Vijay Goyal1 52 Executive Vice President, CEO CIS
1
Dilip Oommen 65 Executive Vice President, CEO AMNS India
Stephanie Werner-Dietz1 51 Executive Vice President, Head of HR

1. Age and position as of December 31, 2023.

Lakshmi N. Mittal (See “—Board of Directors”).

Aditya Mittal (See "—Board of Directors").

Genuino M. Christino
Member of the Group management committee,

Chief Financial Officer.

52 years old Expertise and experience

Nationality: Brazilian Genuino M. Christino is the Chief Financial Officer and Executive Vice President of ArcelorMittal since February 2021. He is a
member of the Group management committee since 2016. Prior to Mr. Christino’s appointment as Chief Financial Officer, he
was the Group Head of Finance since 2016. As Chief Financial Officer, Mr. Christino is responsible for all of the Company’s
financial functions, including treasury, corporate finance, accounting, performance management, insurance and investor
relations. In addition, Mr. Christino oversees Group's Merger & Acquisitions, Legal and IT activities and is a member of the
Company’s Investment Allocation Committee. Mr. Christino also heads the Company’s Corporate Finance and Tax Committee
where all key financial transactions of the Group are reviewed and approved. Prior to joining the ArcelorMittal in 2003, Mr.
Christino had spent ten years at KPMG in Brazil and in the United Kingdom, as an auditor and a consultant. Mr. Christino
holds a bachelor’s degree in accounting and business administration from the Universidade Paulista in São Paolo, Brazil and
has also completed an Executive MBA Program from the Dom Cabral Foundation in Belo Horizonte, Brazil. Mr. Christino is a
citizen of Brazil.

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Stefan Buys
Member of the Group management committee,

CEO of ArcelorMittal Mining.

52 years old Expertise and experience

Nationality: Australia and South Stefan Buys is a member of the Group management committee and the CEO of ArcelorMittal Mining. He joined the group on
Africa October 1, 2021. He has more than 28 years’ experience in the mining and minerals industry, starting his career in 1994 at
Iscor Vanderbijlpark in South Africa. He joined Xstrata in 1995 and led various operational units, with his last role being Chief
Operating Officer of Xstrata Copper North Chile. In 2010, he joined BHP as Asset President Olympic Dam and later served as
Project Director Organization Design. In 2018, he joined RioTinto as Managing Director Pilbara Mines, leading the iron ore
mining operations in the Pilbara. He holds a bachelor’s degree in metallurgical engineering from the University of Pretoria, a
post graduate diploma in management from the University of South Africa and a post graduate diploma in teaching from the
University of Western Australia. Mr. Buys holds dual citizenship in Australia and South Africa.

Jefferson de Paula
Member of the Group management committee,

President of ArcelorMittal Brasil,

CEO of ArcelorMittal Long LATAM and Mining Brazil.

65 years old Expertise and experience

Nationality: Brazilian Jefferson de Paula is a member of the Group management committee, President of ArcelorMittal Brazil, CEO of ArcelorMittal
Long LATAM and Mining Brazil. Counting over 36 years of work in the steel industry, Mr. De Paula has been with the Group
since 1991, occupying several executive positions in Brazil, Argentina, Americas and Europe. He is Vice President of the
Federation of Industries of the State of Minas Gerais (FIEMG), Chairman of Brazil Steel Institute (IABr), a member of the
Board of Directors of the Latin American Steel Association (ALACERO). Mr. De Paula is graduated in metallurgical
engineering from Universidade Federal Fluminense (Brazil) and has attended to senior executive courses from Insead
(France) and from Kellogg - Northwestern University (USA). Mr. de Paula is a citizen of Brazil.

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Geert Van Poelvoorde

Member of the Group management committee.

CEO ArcelorMittal Europe

58 years old Expertise and experience

Nationality: Belgian Geert Van Poelvoorde is a member of the Group management committee. He started his career in 1989 as a project engineer
at the Sidmar Ghent hot strip mill, where he held several senior positions in the automation and process computer
department. He moved to Stahlwerke Bremen in 1995 as senior project manager. Between 1998 and 2002, he headed a
number of departments, and in 2003 he was appointed director of Stahlwerke Bremen, responsible for operations and
engineering. In 2005, Mr. Van Poelvoorde returned to ArcelorMittal Ghent to take up the position of Chief Operating Officer. In
2008, he became CEO of ArcelorMittal Ghent with direct responsibility for primary operations. He was appointed CEO of the
Business Division North within Flat Carbon Europe in 2009. In January 2014, he was appointed CEO of Flat Carbon Europe
and Purchasing and in February 2021, he became CEO of ArcelorMittal Europe. Since November 2015, he is a member of
the executive committee of Eurofer (as president between 2015 and the end of 2022), the European steel federation and is
serving on several boards. He graduated from the University of Ghent with a degree in civil engineering and electronics. Mr.
Van Poelvoorde is a citizen of Belgium.

John Brett
Member of the Group management committee,

Chief Executive Officer of ArcelorMittal North America.

58 years old Expertise and experience

Nationality: USA John Brett, is a member of the Group management committee, an Executive Vice-President and the Chief Executive Officer of
ArcelorMittal North America. He joined the group at former Inland Steel in 1988 as an associate accountant, and progressed
to become a manager specializing in financial analysis and systems in 1997. In 1998, Mr. Brett took on the role of controller
for Ispat Inland Steel and in 2005, he was promoted to vice president, finance and planning and controller for Mittal Steel
USA. In 2012, Mr. Brett was appointed executive vice president finance, planning and procurement for ArcelorMittal USA.
Prior to becoming CEO of ArcelorMittal North America in January 2021, Mr. Brett was CEO of ArcelorMittal USA. Mr. Brett
holds an MBA from the University of Chicago and is a graduate in economics from DePauw University. Mr. Brett is a citizen of
the United States of America.

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Bradley Davey
Member of the Group management committee,

Head of Corporate Business Optimization.

59 years old Expertise and experience

Nationality: Canadian Bradley Davey is a member of the Group management committee, Executive Vice President and Head of Corporate Business
Optimization. He joined Dofasco in 1986 as a project engineer in the central maintenance department, joined assigned
maintenance in 1989, and then the hot strip mill ("HSM") in 1990. He held various positions in the HSM before becoming a
Business Unit Manager in 1996. He gained international manufacturing experience through this role by leading two separate
multi-year technical exchanges and through leading Dofasco’s HSM modernization project. In 2002, he changed careers to
marketing as a Manager Strategic Marketing, led Dofasco’s Marketing process redesign project before becoming General
Manager of Marketing in 2005, then to Director of Industry Sales in 2007, and then Vice President Commercial in 2008. In
2014, he added CMO North America Automotive, then became CMO North America Flat Rolled later in 2014. In 2016, he
became CMO of Global Automotive along with CMO North America. In 2018, Mr. Davey became CEO of ArcelorMittal North
America and held this position until his nomination to Head of Corporate Business Optimization early April 2021. Currently
based in Canada, Mr. Davey has responsibility for Global Automotive, R&D, CTO, Corporate Health and Safety, Commercial
Coordination, Corporate Capital Goods Procurement, Corporate Communications and Corporate Responsibility, Automotive,
JV’s in China and India, Tailored Blanks Americas, and is Vice Chairman of the Investment Allocation Committee. Mr. Davey
holds a mechanical engineering degree from McMaster University, Canada. Mr. Davey is a citizen of Canada.

Vijay Goyal
Member of the Group management committee,

Chief Executive Officer of ArcelorMittal CIS.

52 years old Expertise and experience

Nationality: Indian Vijay Goyal is a member of the Group management committee and the Chief Executive Officer of ArcelorMittal CIS
(ArcelorMittal Kryvyi Rih, Ukraine and recently divested ArcelorMittal Temirtau, Kazakhstan). The joint venture ArcelorMittal
Tubular Products Jubail is also part of his scope. After having started his career as an internal auditor at ITC Ltd in India, he
joined Mittal Steel in 1999 and held various positions in the finance function. In 2007, he was nominated as CFO and Head of
Strategy for Long Carbon Europe, followed by his appointment as CFO and Head of central supply chain of Flat Carbon
Europe in 2008. From 2014 to 2016, he was CFO of ArcelorMittal Europe, additionally in charge of legal, IT and the Shared
Service Center Europe before being appointed CEO of ArcelorMittal Downstream Solutions and member of the Group
Management Committee in October 2016. During 2019, he focused on the leadership of strategic projects for ArcelorMittal,
primarily with respect to the acquisition of ESIL with the Company's joint venture partner NSC to create AMNS India, prior to
his appointment as CEO of ArcelorMittal CIS from January 2020 onwards. Mr. Goyal is a graduate from St. Xavier’s College,
Calcutta. He is a chartered accountant and cost and works accountant from the respective institutes in India. In 2021, he was
recognized with the “Global Achiever” award by The Institute of Chartered Accountants of India. He has also completed
executive education programs at Wharton Business School. Mr. Goyal is a citizen of India.

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Dilip Oommen
Member of the Group management committee,

Chief Executive Officer of AMNS India.

65 years old Expertise and experience

Nationality: Indian Dilip Oommen is a member of the Group management committee. He was appointed CEO of AMNS India in
December 2019 after the acquisition of ESIL. He has more than 40 years of experience in the steel industry. Mr.
Oommen joined ESIL in 2003 as chief operating officer, before moving to senior leadership positions within the
company. He was appointed Managing director and Chief Executive Officer of ESIL in 2019. Prior to joining ESIL, Mr.
Oommen had worked in various leadership roles in Hadeed (SABIC), both in Long and Flat Product divisions. In 2020,
Mr. Oommen was elected President of the Indian Steel Association, the industry body that represents major public and
private sector steel companies in India. He has also served in the past as Co-Chair of the Federation of Indian
Chambers of Commerce & Industry’s ("FICCI") Steel Committee, one of several industry leadership roles he has taken
on during his career. He is also a member of the Advisory Committee of the Steel Ministry of India. Mr. Oommen is a
metallurgical engineer from the Indian Institute of Technology, Kharagpur. He has attended several management and
technical programs across the globe. Mr. Oommen is a citizen of India.

Stephanie Werner-Dietz
Member of the Group management committee.

Head of HR

51 years old Expertise and experience

Nationality: German Stephanie Werner-Dietz is a member of the Group management committee. She was appointed head of human resources on
September 1, 2022. She joined ArcelorMittal with a long ranging HR experience of almost 25 years at Nokia, which she joined
in 1998. Throughout her career, Mrs. Werner-Dietz has held different HR leadership positions in various countries. She held
multiple HR business partner and expert roles across the company, and she was chief people officer of Nokia, based in
Finland from January 2020 until her arrival at ArcelorMittal. Mrs. Werner-Dietz is a graduate in applied business languages
(Chinese) and international business studies from the University of Applied Sciences of Bremen, Germany. Mrs. Werner-Dietz
is a citizen of Germany.

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Compensation

Content
Annual statement from the Chairman of ARCG Committee
Board of Directors
Overview of the Company's remuneration policy and rationale of each
Remuneration at a glance - senior management performance metric
Comparison of pay outcomes 2023 vs. 2022 vs. 2021 vs. 2020 vs. 2019
Remuneration at a glance - 2023 pay outcomes Explanation of results for 2022 short-term incentives paid in 2023
Remuneration
Remuneration strategy Explanation of what informs the ARCG's decision on pay
Remuneration policy Explanation of policies applied to senior management
Remuneration mix Overview of the remuneration mix for senior management
2023 Total remuneration Overview of 2023 outcomes
Short-term incentives Description of short-term incentives plan ("STI")
ArcelorMittal Equity Incentive Plan Description of long-term incentive plan ("LTIP" or "LTI"s)
Other benefits Description of other benefits
Clawback Explanation of Company’s clawback policy (Exhibit 97.1)

Abbreviations
EBITDA Operating income plus depreciation, impairment expenses and exceptional items
FCF Free cash flow
STI Short-term incentives
LTI/LTIP Long-term incentives (plans)
EPS Earnings per share
ESG Environment, social and governance
PSU Performance share units
RSU Restricted share units
ROCE Return on capital employed
TSR Total shareholder return

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Annual statement from the Chairwoman of ARCG Committee • In depth assessments of all health and safety systems,
processes, structures, and capabilities; governance
Dear Shareholders,
and assurance processes; and systems and data
In my capacity of Appointments, Remuneration & Corporate management.
Governance Committee (“ARCG”) chair I would like to provide
you with a summary of the Committee’s major focus and with an While the audit is ongoing, the Company has been reinforcing
overview of the main actions taken, and to be taken, in the field many of the safety actions that have been underway based on
of Health and Safety, people strategy, remuneration, the twin pillar of risk management and cultural change. There
successions and nominations. are indications that the actions taken are working. Excluding the
Kazakhstan operations, the safety performance in our steel
Health and Safety business was 25% lower than the best ever result achieved by
In recent years, we have intensified our focus on safety the World Steel Association, and this is an excellent
considerably and have benefitted from the positive interaction achievement by any standards, although until that number
with the Board’s Sustainability Committee. However, in 2023, 61 reaches zero, we can take no satisfaction.
colleagues have lost their lives in accidents in the Company’s
operations, and we cannot conclude that we are where we Business and results
would like to be on health and safety. We were shocked by the We have delivered a strong set of financials in 2023, which
tragic accident at our Kostenko coal mine in Kazakhstan on reflects the structural improvement that we have made to our
October, 28 2023, in this terrible accident a total of 46 cost base, asset portfolio and balance sheet in recent years. We
employees have lost their lives. No words can adequately have all worked hard in recent years to enable the Company to
convey the devastation we feel following this accident. thrive and generate cash in all market conditions. We have
Everything that can be done was done to support the families in demonstrated again in 2023 — resilient cash flow, despite the
Kazakhstan who have lost loved ones through this deeply operating environment becoming more challenging as the year
painful time. Assistance to bereaved families includes all funeral progressed. This supported by 2023 profitability per tonne being
and memorial expenses, a one-off payment equivalent to ten above average levels achieved in the 2012- 2022 period. Net
years’ salary, purchasing housing, repaying personal loans, and debt in 2023 stood comfortably at $2.9 billion. As such, the
the covering of all education fees for children up to the age of Board proposes to increase the annual base dividend to
23. shareholders to $0.50/share and will continue to return a
minimum 50% of post-dividend free cash flow to shareholders
On December 7, 2023, ArcelorMittal closed the transaction with through the buyback programs.
the Government of Kazakhstan for the sale of its Kazakhstan
business. This followed discussions that have taken place over It is clear that our results focused Long-term and Short-term
several months, during which both parties have been focused Incentive Plans and the challenging targets set by our
on securing the best possible future for the company and its Committee are a major factor in driving these results.
people. It is a matter of great regret that our departure from
People strategy, Remuneration, nomination, and governance
Kazakhstan followed so closely on the tragic recent accident at
During the annual general meeting of shareholder held in May
Kostenko. We aligned together many months ago on this
2023, Mrs. Patricia Barbizet was elected as a new member of
change of ownership being in the best interests of the asset, its
the Board of Directors for a three-year mandate that will expire
people, its wider communities and indeed all stakeholders.
on the date of the annual general meeting of shareholders to be
The focus now is to identify any gaps that existed in the health held in 2026. The same day at the Board of Directors’ meeting
and safety approach and strengthen existing safety actions to Mrs. Barbizet was appointed as member of the Audit & Risk
reach our target of zero fatalities and severe injuries. The audit Committee and I was appointed as new Lead Independent
of the Company’s safety practices has now commenced and will Director and chair of the ARCG Committee, succeeding Mr.
support our pathway to zero serious injuries and fatalities. The Bruno Lafont whose mandate has ended.
external consultant will be focused on three key areas: During 2023, the ARCG Committee conducted the Annual Self-
• Comprehensive Fatality Prevention Standards audits Assessment of the Board of directors, which has shown that the
for the three main occupational risks leading to Serious Company continues to place a ubiquitous focus on the Health
Injuries and Fatalities. and Safety improvement (including fatality reduction),
decarbonization and other ESG measures, but also on
• Expert input into our planned CTO-led process risk deployment of capital in the long term and for the interests of
management safety audits of our highest priority investors. The Committee reviewed the long-term incentive
countries and assets. plans for Executive Officers and ArcelorMittal equity plan for
2024.

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The Committee had requested benchmarking of ArcelorMittal

Health & Safety related incentives with other steel and mining
companies, and we found that we are well aligned with industry
best practice.

As for the succession plan, the Committee is annually reviewing

the succession plan for our Executive Office and Executive Vice
Presidents and this review was conducted in the second half of
2023. The Committee was working on the search for a non-
executive Director to be appointed at the annual general
meeting on April 30, 2024. This process is ongoing.

Climate and Sustainability

As we grow, we must simultaneously progress towards net zero.
A transformation of the scale and depth we need to undertake is
complex and challenging. Our existing capabilities in low-carbon
metallics and EAF steel- making provide a unique competitive
advantage as we offer an increasingly broad range of low-
carbon intensity steel products to our customers.

Going forward and closing remarks

Safety will be the number one focus for 2024. As the audit
completes, the key recommendations are published, and we
work to progress towards our target of zero serious injuries and
fatalities.

At the same time, we are now in a position where we have a

strong balance sheet, we are increasing the dividend to
shareholders and many of the strategic growth projects are due
to complete this year. The Company is well positioned to take
advantage of a market which has early signs of a more
constructive industry backdrop.

Yours Sincerely,
Karyn Ovelmen

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Board of Directors • Additional remuneration for the Chair of the Audit &
Risk Committee: €30,675 ($32,718);
Directors’ fees • Additional remuneration for the other Audit & Risk
The ARCG Committee of the Board of Directors prepares Committee members: €18,877 ($20,134);
proposals on the remuneration to be paid annually to the • Additional remuneration for the Chairs of the other
members of the Board of Directors. committees: €17,697 ($18,876); and
• Additional remuneration for the members of the other
At the May 2, 2023 annual general meeting of shareholders, the
committees: €11,798 ($12,584).
shareholders approved the annual remuneration for non-
• Additional remuneration for the Chair of the special
executive directors for the 2022 financial year, based on the
committee: €12,500 ($13,333)
following annual fees (euro denominated amounts are translated
• Additional remuneration for the members of the special
into U.S. dollar as of December 31, 2022):
committee: €10,000 ($10,666).
• Basic director’s remuneration: €158,095 ($168,624);
• Lead Independent Director’s remuneration: €222,985
($237,836);

The total annual remuneration of the members of the Board of Directors for their service for the last five financial years was as follows:

Year ended December 31,

(Amounts in $ thousands except Long-term incentives information) 2023 2022 2021 2020 2019
1
Base salary 3,214 3,199 3,483 2,635 1,569
Director fees 1,658 1,676 1,784 1,706 1,554
Short-term performance-related bonus1 — 6,388 5,133 935 3,198
1, 2
Long-term incentives 141,973 141,564 109,143 148,422 89,933

1 Includes Executive Chairman and CEO in 2023, 2022 and 2021, Chairman and CEO and President and CFO in 2020 and Chairman and CEO in 2019. Slight differences
between the years are possible, due to foreign currency effects.
2 See “Management and employees—Compensation—Remuneration—ArcelorMittal Equity Incentive Plan.”

The annual remuneration for the last five financial years to the current and former members of the Board of Directors for services in all
capacities in the years in which they were Directors was as follows:

(Amounts in $ thousands) 20231 20221 20211 20201 20191

Lakshmi N. Mittal 1,536 1,529 1,700 1,374 1,569
Aditya Mittal 1,678 1,670 1,783 1,261 —
Vanisha Mittal Bhatia 175 169 176 186 171
Suzanne P. Nimocks — 76 189 200 183
Bruno Lafont 96 277 302 306 280
Tye Burt 201 194 194 200 183
Karyn Ovelmen 269 201 221 223 204
Jeannot Krecké — — — 78 171
Michel Wurth 188 181 181 186 171
Karel de Gucht 196 189 208 209 191
Etienne Schneider 196 189 197 118 —
Clarissa Lins 207 200 116 — —
Patricia Barbizet 130 — — — —
Total 4,872 4,875 5,267 4,341 3,123

1. Remuneration for non-executive Directors with respect to 2023 will be paid in 2024 subject to Board of Directors proposal and to the shareholder approval at the annual
general meeting to be held on April 30, 2024. Remuneration for non-executive Directors with respect to 2022, 2021, 2020 and 2019 was paid in 2023, 2022, 2021 and
2020, respectively, following the shareholder approval at the annual general meetings held on May 2, 2023, on May 4, 2022, June 8, 2021 and June 13, 2020,
respectively. Slight differences between the years are possible, due to foreign currency effects.

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Except for the Executive Chairman and the CEO, members of the Board of Directors have not received any remuneration from any
subsidiary of the Group in 2023.

The annual remuneration for the last five financial years on a full-time equivalent basis of employees of ArcelorMittal S.A. was as
follows:

(Amounts in $ thousands) 20231 20221 20211 20201 20191

Average Remuneration 502 446 446 412 389

1. The annual remuneration is calculated for approximately 14 employees with a labor contract with ArcelorMittal S.A (not including any employees employed by other
entities within the Group).

ArcelorMittal has performed a benchmarking on remuneration members of its Board of Directors and ArcelorMittal had not
with its selected peers and fixed the remuneration of the given any guarantees in favor of any member of its Board of
employees and Directors based on the outcome of that Directors. None of the members of the Board of Directors, other
exercise. than the CEO, benefit from an ArcelorMittal pension plan. Short-
term incentives paid to executive directors (including the current
The policy of the Company is not to grant any share-based CEO beginning in 2020) were as follows for the last five financial
remuneration to members of the Board of Directors who are not years:
executives of the Company. As of December 31, 2023,
ArcelorMittal did not have any loans or advances outstanding to

Short-term Incentives
2023 2022 2021 2020 2019
Lakshmi N. Mittal — 3,053 2,908 — 3,198
Aditya Mittal — 3,335 2,226 935 —

The following tables provide a summary of the PSUs granted December 31, 2023. There were no outstanding stock options
(long-term incentives) to the executive directors on the Board of as of December 31, 2023.
Directors (including the current CEO beginning in 2020), as of

PSUs granted in PSUs granted in PSUs granted in PSUs granted in PSUs granted in
2023 2022 2021 2020 2019
Lakshmi N. Mittal 67,857 67,662 52,166 77,372 89,933
Aditya Mittal 74,116 73,902 56,977 71,050 —
Term (in years) 3 3 3 3 3
1
Vesting date January 1, 2027 January 1, 2026 January 1, 2025 January 1, 2024 January 1, 2023

1. See “Management and employees—Compensation—Remuneration—ArcelorMittal Equity Incentive Plan", for vesting conditions.

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Remuneration at a glance - senior management

The following table provides a brief overview of the Company’s remuneration policy for senior management. Additional information is
provided below.

ArcelorMittal's Remuneration Policy

Remuneration Period Strategy Characteristic
l Reviewed annually by the ARCG Committee considering market data
Salary 2023 Recruitment and retention Increases based on the Company performance and individual
l performance
Maximum STI award of 270% of base salary for the Executive Chairman,
l and the CEO and in general 157.5% of base salary for other
Executive Officers
2023 Delivery of strategic priorities 100% STI paid in cash
STI l
and financial success
l ArcelorMittal's first priority Health and Safety is part of the STI
l Overperformance towards competition
Performance share units granted with a face value of 120% of base
salary for the Executive Chairman and CEO
l Performance share units / Restricted share units granted with a face
value of 100%-120% of base salary as a guideline for other Executive
Officers depending on the region

2024-2026 Encourages long term Shares vest after a three-year performance period for Performance share
LTIP l
shareholder return units and after a three-year period for Restricted share units

l Performance related vesting and/or employment related vesting

Key Performance Metrics from 2023

Metrics Scheme Rationale
EBITDA STI
l Demonstrates growth and operational performance of the underlying businesses
FCF STI
Gap to competition STI / LTIP l Outperform peers

Health & Safety STI / LTIP l Employee health and safety is a core value for the Company

ESG LTIP l Improve health & safety outcome, achieve decarbonization and diversity & inclusion targets

EPS LTIP l Links reward to delivery of underlying equity returns to shareholders

l Creates a direct link between executive pay and shareholder value

TSR LTIP
l Comparison with a peer group of companies

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Remuneration at a glance - 2023 Pay outcomes

The following graphics present in thousands of U.S. dollar the compensation paid to the Executive Chairman (CEO until February 11,
2021) in 2023, 2022, 2021, 2020 and 2019 and to the CEO (President and CFO until February 11, 2021) in 2023, 2022, 2021 and 2020.
Amounts presented for the CFO and other Executive Officers relate to the former President and CFO (Aditya Mittal) and other
Executive Officers until February 11, 2021 and to the CFO and other Executive Officers thereafter. Information with respect to total
remuneration paid is provided under “—Remuneration—2023 Total remuneration” below.

Executive Chairman

2023 1,536 2,327

2022 1,529 3,053 3,772

2021 1,700 2,908

2020 1,374

2019 1,569 3,198

Base salary Short-term incentives Long-term incentives (value of vesting)

Chief Executive Officer

2023 1,678 2,136

2022 1,670 3,335 3,209

2021 1,783 2,226

2020 1,261 935

Base salary Short-term incentives Long-term incentives (value of vesting)

Chief Financial Officer and Executive Officers

2023 6,395 8,773 3,946

2022 5,789 9,370 1,574

2021 5,056 7,158 3,004

2020 4,231 3,104

2019 4,643 6,015 2,720

Base salary Short-term incentives Long-term incentives (value of vesting)

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2022 short-term incentives paid in 2023

Business Units Executive Realization as % of business target

Lakshmi N. Mittal Executive office renounced their short-term
Executive Office
Aditya Mittal incentive
Mining* Stefan Buys 75%
NAFTA John Brett 107%
Corporate* Genuino Christino 114%
Corporate* Bradley Davey 114%
Corporate* Stephanie Werner-Dietz 114%
CIS* Vijay Goyal 96%
AMNS India* Dilip Oommen 95%
Flat Carbon Europe Geert van Poelvoorde 124%
Long Carbon South America Jefferson de Paula 150%

Note: Individual performance not included in the percent of realization.

*Health & Safety part of the bonus was nil due to the number of fatalities.

Long-term incentives vesting in 2023

Executive office

In 2023, the following long-term incentives vested:

Number of PSUs
granted to Number of shares
Executive office acquired by
Vehicle Date of vesting Date of grant and outstanding Executive office
PSUs January 1, 2023 December 16, 2019 172,517 160,699

CFO and Other Executive Officers

In 2023, the following long-term incentives vested:

Number of PSUs and

RSUs granted to CFO Number of shares
and other Executive acquired by CFO and
officers and other Executive
Vehicle Date of vesting Date of grant outstanding officers
January 1, 2023
PSUs Performance approved by the ARCG Committee on March 16, December 16, 2019
2023 77,800 77,800
RSU May 7, 2023 May 7, 2021 22,500 22,500
RSU December 14, 2023 December 14, 2020 44,200 44,200

Remuneration recruitment, motivation and retention of senior executives while

Remuneration strategy complying with applicable rules and regulations.
The ARCG Committee assists the Board of Directors to maintain
a formal and transparent procedure for setting policy on senior Board oversight
management's remuneration and to determine an appropriate To this end, the Board of Directors has established the ARCG
remuneration package for senior management. The ARCG Committee to assist it in making decisions affecting employee
Committee should ensure that remuneration arrangements remuneration. All members of the ARCG Committee are
support the strategic aims of the business and enable the required to be independent under the Company’s corporate
governance guidelines, the NYSE standards and the 10

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Principles of Corporate Governance of the Luxembourg Stock II, that was transposed into Luxembourg law in August 1, 2019,
Exchange. the remuneration policies must be approved at the Annual
General Meeting of shareholders at least every 4 years and
The members are appointed by the Board of Directors each whenever there is a material change.
year after the annual general meeting of shareholders. The
members have relevant expertise or experience relating to the Scope
purposes of the ARCG Committee. The ARCG Committee ArcelorMittal’s remuneration philosophy and framework apply to
makes decisions by a simple majority with no member having a the following groups of senior management:
casting vote and is chaired by Ms. Karyn Ovelmen, Lead
Independent Director. • the Executive Chairman and the CEO; and
• the CFO and other Executive Officers.
Appointments, remuneration and corporate governance
committee The remuneration philosophy and governing principles also
Regarding compensation, the objective of the ARCG Committee apply, with certain limitations, to a wider group of employees
is to assist the Board of Directors with respect to the following: including Executive Vice Presidents, Vice Presidents, General
Managers and Managers.
• review and approve corporate goals and objectives
regarding remuneration relevant to the Executive Office Remuneration philosophy
and Executive Officers and other members of ArcelorMittal’s remuneration philosophy for its senior
executive management as deemed appropriate by the management is based on the following principles:
committee, and assess performance against goals and
• provide total remuneration competitive with executive
objectives;
remuneration levels of peers of similar size, scope and
• make recommendations to the Board of Directors with industry:
respect to incentive remuneration plans and equity-
– Korn Ferry (KF) and WillisTowersWatson (WTW)
based plans;
provide benchmarking services to ArcelorMittal for
• submit proposals to the Board of Directors on the all Management Committee members, an average
remuneration of the members of the Executive Office between KF and WTW data is performed;
and Executive Officers:
– For the Steel division: Large industry - industrial
• make recommendations to the Board of Directors in segment including metals, chemicals, mining,
respect of the Company’s framework of remuneration transport, energy & utilities, upper revenues range;
for the members of the Executive Office and Executive
– For the Mining division: Large companies with a
Officers and such other members of the executive
significant mining divisions or companies similar to
management as designated by the committee. In
ArcelorMittal Mining division;
making such recommendations, the committee may
take into account factors that it deems necessary. This – Data are linked to each local market.
may include a member’s total cost of employment • encourage and reward performance that will lead to
(factoring in equity/long term incentives, any long-term enhancement of shareholder value; and
perquisites and benefits in kind and pension
contributions). • promote internal pay equity by providing base pay and
Individual remuneration is discussed by the ARCG Committee total remuneration levels that reflect the role, job size
without the person concerned being present. The ARCG and responsibility as well as the performance and
Committee Chair presents her decisions and findings to the effectiveness of the individual.
Board of Directors after each ARCG Committee meeting.
Remuneration framework
See also "Corporate governance—Board of Directors The ARCG Committee develops proposals for senior
committees"' for further details and additional responsibilities of management remuneration annually for the Board of Directors'
the ARCG Committee. consideration. Such proposals include the following
components:
Remuneration policy
• fixed annual salary;
The ARCG Committee set policies applied to senior
management on base salary, short-term incentives and long- • short-term incentives (i.e., performance-based bonus);
term incentives. According to the Shareholders Right Directive and

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• long-term incentives (i.e., stock options (prior to May

2011), RSUs and/or PSUs (after May 2011) depending
on the grant year).
The Company does not have any deferred compensation plans
for senior management, including the Executive Chairman and
CEO.

The following table provides an overview of the remuneration policy applied by the ARCG:

Remuneration component
and link to strategy Operational and performance framework Opportunity
Fixed annual salary * Base salary levels are reviewed annually with effect from April 1 The ARCG does not set a maximum salary,
(except promotion) compared to the market to ensure that ArcelorMittal instead when determining any salary
Competitive base salary to remains competitive with market median base pay levels increases it takes into account a number of
attract and retain high- * Reviews are based on market information obtained but not led by reference points including salary increases
quality and experienced benchmarking to comparable roles, changes in responsibility and
across the Company
senior executives general economic conditions
Benefits * May include costs of health insurance, death and disability insurances, The cost to the Company of providing benefits
company car, tax return preparation, etc. can change from year to year. The level of
Competitive level to ensure * Relocation benefits may be provided where a change of location is benefit provided is intended to remain
coverage of the executives made at Company’s request competitive
Pension

Competitive level of post- * Local benchmark of pension contributions for comparable roles
employment benefit to
attract and retain executives
* Scorecard is set at the commencement of each financial year
* Measures and relative weights are chosen by the ARCG Committee to Range for Executive Chairman and CEO: 0 to
drive overall performance for the coming year
Short term incentives (STI) 270% with a target at 120% of base salary
* STI calculations for each executive reflect the performance of
ArcelorMittal and /or the performance of the relevant business units, the
Motivate the senior achievement of specific objectives of the department and the individual
executives to achieve executive’s overall performance
stretch performance on Range for CFO and Executive Officers: 0 to
* No STI is paid for a performance below threshold 80% for each criteria;
strategic priorities 157.5% with a target at 70% of base salary in
100% STI payout for performance achieved at 100% for each criteria; general
150% STI payout for performance achieved at 120% or above for each
criteria
Executive Office LTIP

* The vesting is subject to a relative TSR (Total Shareholder Return) and

to a relative EPS compared to a peer group and to ESG targets over a
LTIP three year- period
*The peer group is determined by the ARCG Committee Maximum value at grant:
* No vesting will occur below the weighted average of the peer group or
Sustain shareholder wealth the target for ESG 120% of base salary for Executive Chairman
creation in excess of * Performance is determined by the ARCG Committee and CEO
performance of a peer
group and incentivize CFO and Executive Officers LTIP Guideline: 100%-120% of base salary for CFO
executives to achieve and Executive Officers depending on region
strategy *The vesting is subject to two or three measures depending on the
business units or group, Gap to competition, TSR vs. weighted average
of the peer group and ESG
*Vesting will occur if the performance is reached
*Performance is determined by the ARCG Committee

Remuneration mix Executive Officers' compensation, are applicable for 2023 as

The total remuneration target of the Executive Chairman, CEO percentage of base salary. For each of the charts below, the
and CFO is structured to attract and retain executives; the columns on the left, middle and on the right, respectively, reflect
amount of the remuneration received is dependent on the the breakdown of compensation if targets are not met, met and
achievement of superior business and individual performance exceeded.
and on generating sustained shareholder value from relative
performance.

The following remuneration charts, which illustrate the various

elements of the Executive Chairman, CEO, CFO and the other

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EXECUTIVE CHAIRMAN REMUNERATION MIX

180%

120%
270%

120%
—
5% 5% 5%
100% 100% 100%

Below threshold Target Maximum

Base Salary Other benefits Short-term incentives Long-term incentives

Note: no pension contribution

CEO REMUNERATION MIX

180%

120%
270%

120%
13% 13% 13%
100% 100% 100%

Below threshold Target Maximum

Base Salary Other benefits Short-term incentives Long-term incentives

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CFO AND EXECUTIVE OFFICERS REMUNERATION MIX

150%

100%
157.5%
70%
27% 27% 27%

100% 100% 100%

Below threshold Target Maximum

Base Salary Other benefits Short-term incentives Long-term incentives

Note: Other benefits, as shown above, do not include international mobility incentives that may be provided.

2023 Total remuneration

The total remuneration paid in 2023 to members of No loans or advances to ArcelorMittal’s senior management
ArcelorMittal’s senior management listed in “Management and were made during 2023, and no such loans or advances were
employees—Directors and senior management” (including Mr. outstanding as of December 31, 2023.
Lakshmi N. Mittal in his capacity as Executive Chairman and Mr.
The following table shows the remuneration received by the
Aditya Mittal as CEO) was $10.4 million in base salary and other
Executive Chairman, CEO, CFO and the other Executive
benefits paid in cash (such as health, other insurances, lunch
Officers as determined by the ARCG Committee in relation to
allowances, financial services, gasoline and car allowance) and
the five most recent financial years including all remuneration
$8.8 million in short-term performance-related variable
components:
remuneration consisting of a short-term incentive linked to the
Company’s 2022 results. During 2023, approximately $1.2
million was accrued by ArcelorMittal to provide pension benefits
to senior management (other than Mr. Lakshmi N. Mittal).

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Chief Financial Officer and

Executive Chairman7 CEO6 Executive Officers 5
(Amounts in $ thousands
except for Long-term
incentives) 2023 2022 2021 2020 2019 2023 2022 2021 2020 2023 2022 20218 2020 2019
1
Base salary 1,536 1,529 1,700 1,374 1,569 1,678 1,670 1,783 1,261 6,395 5,790 5,056 2,970 4,643
Retirement benefits — — — — — 168 167 178 146 1,041 1,066 1,348 555 698
2
Other benefits 80 72 66 45 47 44 39 38 33 674 599 237 144 223
3
Short-term incentives — 3,053 2,908 — 3,198 — 3,335 2,226 935 8,773 9,370 7,158 2,169 6,015
- fair value in $
Long-term thousands4 1,391 1,520 1,419 1,407 1,339 1,519 1,661 1,550 1,292 6,544 3,838 4,396 1,834 3,096
incentives - number of
share units 67,857 67,662 52,166 77,372 89,933 74,116 73,902 56,977 71,050 287,900 155,400 146,600 90,069 183,084

1. After the salary decrease applied in 2020, the base salaries of the CEO and President and Chief Financial Officer were set back to the original amounts in 2021. In 2023, a
salary increase of 8.5% including the promotions was applied for the Executive Officers only.
2. Other benefits comprise benefits paid in cash such as lunch allowances, financial services, gasoline and car allowances. Health insurance and other insurances are also
included.
3. Short-term incentives are entirely performance-based and are fully paid in cash. The short-term incentive for a given year relates to the Company’s results in the previous
year.
4. Fair value determined at the grant date is recorded as an expense using the straight line method over the vesting period and adjusted for the effect of non-market based
vesting conditions.
5. President and Chief Financial Officer included in 2019.
6. Amounts presented for 2021 and 2020 reflect the compensation as President and Chief Financial Officer until February 11, 2021 and as CEO thereafter.
7. Amounts presented reflect the compensation as CEO until February 11, 2021 and as Executive Chairman thereafter.
8. Brian Aranha was included until March 31, 2021. Simon Wandke was included until September 30, 2021. New executive officers were included as of their respective
nomination date.

Short-term incentives
benchmark for the Health & Safety component to be
Targets associated with ArcelorMittal’s 2023 Annual
awarded.
Performance Bonus Plan were aligned with the Companies’
strategic objectives of improving health and safety performance For the Executive Chairman and CEO, 100% achievement of
and overall business performance and competitiveness. the agreed performance targets results in an annual
performance bonus which equals 120% of base salary.
For the Executive Chairman and the CEO, the 2023 annual
performance bonus formula is based on the achievement of the For the CFO and other Executive Officers, the 2023 annual
following performance targets: performance bonus formula has been tailored for their
respective positions and is generally based on the following
• EBITDA targets at Group level: 40% (acts as circuit
performance targets:
breaker for financial measures EBITDA and FCF);
• EBITDA targets at Group, segment or Business unit
• FCF targets at Group level: 25%;
level (acts as circuit breaker for financial measures
• Gap to competition targets at Group level: 20%; and EBITDA and FCF);

• Health and safety performance targets at Group level: • FCF targets at Group, segment or Business unit level;
15%. In order to help focus attention, energy and
• Gap to competition targets at Group level, segment or
resources on detecting and eliminating the causes of
Business unit level;
serious injury or fatality precursors, the Company has
moved to a target of potential severe injury or fatality. • Health and safety performance targets at Group,
To emphasize this priority, the fatality frequency rate Segment or Business unit level (fatalities act as circuit
acts as a circuit breaker for the Health & Safety breaker for this component).The circuit breaker is set at
component. The circuit breaker is set at 90% of the 90% of the World Steel Association average, excluding
World Steel Association average, excluding ArcelorMittal and excluding those members within CIS
ArcelorMittal and excluding those members within CIS countries. Safety performance must be better than this
countries. Safety performance must be better than this

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benchmark for the Health & Safety component to be an individual multiplier of 1. For outstanding performers, an
awarded. individual multiplier of up to 1.5 may cause the annual
performance bonus pay-out to be higher than 150% of the target
For the CFO and other Executive Officers, 100% achievement annual performance bonus, up to 270% of the target annual
of the agreed performance targets results in an annual performance bonus being the absolute maximum for the
performance bonus which equals 70% of base salary in general. Executive Chairman and the CEO. Similarly, a reduction factor
will be applied for those at the lower end.
For the calculation of the annual performance bonus, the
achievement level of every performance target is calculated In exceptional circumstances, the ARCG Committee can
separately, and these are added up. exercise discretion in the final determination of the annual
performance bonus.
Individual performance and assessment ratings define the
individual annual performance bonus multiplier that will be The achievement level of performance for the annual
applied to the annual performance bonus calculated based on performance bonus for the Executive Chairman, the CEO, the
actual performance against the performance measures. Those CFO and the other Executive Officers is summarized as follows:
individuals who consistently perform at expected levels will have

Functional level Target achievement threshold @ 80% Target achievement @ 100% Target achievement ≥ ceiling @ 120%
Executive Chairman and CEO 60% of base pay 120% of base pay 180% of base pay
CFO and Executive Officers 35% of base pay 70% of base pay 105% of base pay

ArcelorMittal Equity Incentive Plan

ArcelorMittal operates a long-term incentive plan ("the RSUs granted under the ArcelorMittal Equity Incentive Plan are
ArcelorMittal Equity Incentive Plan") to incentivize shareholder designed to provide a retention incentive to beneficiaries. RSUs
wealth creation in excess of performance of a peer group and are subject to “cliff vesting” after three years, with 100% of the
incentivize executives to achieve strategy. The ArcelorMittal grant vesting on the third anniversary of the grant contingent
Equity Incentive Plan is intended to align the interests of the upon the continued active employment of the beneficiary within
Company’s shareholders and eligible employees by allowing the Company.
them to participate in the success of the Company. The
Awards in connection with PSUs are subject to the fulfillment of
ArcelorMittal Equity Incentive Plan provides for the grant of
performance criteria such as ROCE, TSR, EPS and gap to
RSUs and PSUs to eligible employees of the Company
competition (until 2022). Since 2021, the performance criteria for
(including the Executive Officers) and is designed to incentivize
the PSUs for the Executive Office and Executive Officers
employees, improve the Company’s long-term performance and
include an ESG criteria comprised of a health & safety, a climate
retain key employees.
action and a diversity & inclusion ("D&I") target. For health &
The maximum number of PSUs and RSUs available for grant safety, the target is to halve the fatality frequency rate versus a
during any given year is subject to the prior approval of the defined baseline (the baseline is the adjusted average
Company’s shareholders at the annual general meeting. The frequency rate over 5 years before the grant). For D&I, the
2020, 2021, 2022 and 2023 Caps for the number of PSUs/RSUs target is to reduce the gap between the Company's 2030 target
that may be allocated to the Executive Office and other retention of having 25% women in management and 2020 baseline. For
and performance based grants below the Executive Office level, climate, the CO2 emission target has been set to be reached by
were approved at the annual general meetings on June 13, the end of the vesting period.
2020, June 8, 2021, May 4, 2022 and on May 2, 2023,
respectively, at a maximum of 4,250,000 shares, 3,500,000
shares, 3,500,000 shares and 3,500,000 shares, respectively.

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Conditions of the 2023 grant were as follows:

Executive Office Executive Officers
l PSUs with a three year performance period l PSUs with a three year performance period

l Value at grant 120% of base salary for the Executive Chairman and
the CEO
l Vesting conditions: l Vesting conditions

Target Stretch Threshold Target Stretch

100% vs. ≥120%

TSR vs. peer group (50%) / ≥120% vs. TSR vs. peer group 100% weighted
weighted - weighted
EPS vs. peer group (20%) weighted average (40%) average
average average
2023
Grant Vesting percentage 100% 150% Vesting percentage - 100% 150%

ROCE (40%) 2/3 of target 100% of target 4/3 of target

ESG (30%): H&S 10%, Climate 100% of target 120% of target Vesting percentage 50% 100% 150%
action 10% and D&I: 10%
ESG (20%): H&S 120% of
Vesting percentage 100% 150% 10%, Climate action - 100% of target target
5% and D&I 5%

Vesting percentage - 100% 150%

l RSUs with a three year vesting period

Awards made in 2020 through 2022

The Company's Equity Incentive Plan for senior management including Executive Officers follows the Company's strategy.

In addition to the 2023 grant, the summary of outstanding plans as of December 31, 2023 is as follows:

Executive Office Executive Officers

l PSUs with a three year performance period l PSUs with a three year performance period

Value at grant 100% of base salary for the Executive Chairman and
l the CEO

l Vesting conditions: l Vesting conditions

Threshold Target Threshold Target

TSR/EPS vs. peer group 100% median ≥120% median TSR/EPS vs. peer group 100% median ≥120% median
2020
Grant
Vesting percentage 50% 100%

Gap to competition (where 100% target

applicable) 100% vesting

Performance ≥Performance
TSR vs. S&P 500 equal to Index +
equal to Index Vesting percentage 0% 100%
2% p.a.
outperformance
Vesting percentage 50% 100% l

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Executive Office Executive Officers

l PSUs with a three year performance period l PSUs with a three year performance period

l Value at grant 100% of base salary for the Executive Chairman and
the CEO

l Vesting conditions: l Vesting conditions:

Threshold Target Target Stretch

TSR vs. peer group (50%) / EPS 100% ≥120%
vs. peer group (20%) 100% median ≥120% median TSR vs. peer group (40%) weighted weighted
average average
2021
Grant Vesting percentage 50% 100% Vesting percentage 100% 150%

Gap to competition (40%) 100% of target 120% of target

ESG (30%) 100% of target Vesting percentage 100% 150%

ESG (20%) 100% of target 120% of target

100% 150%
Vesting percentage 100% l RSUs with a three year vesting period

Executive Office Executive Officers

l PSUs with a three year performance period l PSUs with a three year performance period

l Value at grant 120% of base salary for the Executive Chairman and
the CEO
l Vesting conditions: l Vesting conditions

Target Stretch Target Stretch

100% vs. ≥120% vs. 100% ≥120%

TSR vs. peer group (50%) / EPS weighted weighted TSR vs. peer group (40%) weighted weighted
vs. peer group (20%) average average average average
2022
Grant Vesting percentage 100% 150% Vesting percentage 100% 150%

Gap to competition (40%) 100% of target 120% of target

ESG (30%): H&S 10%, Climate 100% of target 120% of target Vesting percentage 100% 150%
action 10% and D&I: 10%
ESG (20%): H&S 10%,
Vesting percentage 100% 150% Climate action 5% and D&I 100% of target 120% of target
5%
Vesting percentage 100% 150%

l RSUs with a three year vesting period

See note 8.3 to the consolidated financial statements for further details on RSUs/PSUs.

Other benefits
In addition to the remuneration described above, other benefits SOX 304 and clawback policy
may be provided to senior management and, in certain cases, Under Section 304 of the Sarbanes-Oxley Act, the SEC may
other employees. These other benefits can include insurance, seek to recover remuneration from the CEO and CFO of the
housing (in cases of international transfers), car allowances and Company in the event that it is required to restate accounting
tax assistance. information due to any material misstatement thereof or as a
result of misconduct in respect of a financial reporting

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requirement under the U.S. securities laws (the “SOX as a large number of contractors.
Clawback”).
The table below sets forth the number of FTE employees
Under the SOX Clawback, the CEO and the CFO may have to respectively by segment as of the end of each of the past
reimburse ArcelorMittal for any short-term incentive or other three years.
incentive-based or equity-based remuneration received during
the 12-month period following the first public issuance or filing As of December 31,
with the SEC (whichever occurs first) of the relevant filing, and Segment 2023 2022 2021
any profits realized from the sale of ArcelorMittal securities NAFTA 14,418 14,270 13,410
during that 12-month period. Brazil 22,042 19,644 19,450
Europe 62,073 61,305 60,525
In October 2022, the SEC adopted final rules implementing the
Dodd-Frank requirement for issuers to recover incentive-based ACIS1 21,450 52,725 58,438
compensation erroneously paid to current and former executive Mining 4,473 4,626 4,426
officers due to an accounting restatement. These clawback rules Other activities 2,300 1,782 1,660
required listing exchanges, such as the NYSE, to adopt Total 126,756 154,352 157,909
clawback standards as from the fourth quarter of 2023, with
1. ArcelorMittal Temirtau is only included as of December 31, 2022 and 2021
issuers required to implement and disclose “no fault” clawback
policies that meet strict recovery standards for restatements, A new people strategy
within 60 days thereafter. Recognizing the importance of meeting the evolving need of
ArcelorMittal's employees in a post-pandemic world, at the
The Board of Directors, through its ARCG Committee, adopted
backdrop of an increasing competitive job market and
its own clawback policy in 2012, which was updated in 2023 (the
accelerated economic, technological and cultural shifts, the
"Clawback Policy"), to reflect the Company’s structural changes
Company launched a new people strategy in 2022. The strategy
and comply with the new rules.
is based around ArcelorMittal's fundamental purpose to create
The Clawback Policy applies to all Executive Officers and smarter steels for people and the planet. It is founded on three
covers cash short-term incentives and any other incentive- pillars: ‘Leadership that inspires excellence’, ‘Talent to thrive for
based or equity-based remuneration, as well as profits from the the future’, and ‘Diversity and inclusion that engages everyone’.
sale of the Company’s securities ("Covered Compensation") This strategy seeks to boost the Company's approach to boost
received during the three completed fiscal years of the talent and creating a base to establish a safety-first, people-
Company immediately preceding a the Restatement Date (as driven culture that ensures sustainable performance and allows
defined in the policy) and any transition period (that results from the Company to deliver on its purpose.
a change in the Company’s fiscal year) of less than nine months
Employee development
within or immediately following those three completed fiscal
Attracting, developing and retaining the right people
years. Compensation is deemed to be received in the
continues to be a strategic priority for ArcelorMittal in
Company’s fiscal period during which the Financial Reporting
maintaining a high- performing organization.
Measure specified in the Incentive-based Compensation award
is attained. There continues to be strong demand for the best talent and
ArcelorMittal wants to ensure it is considered as an aspirational
Under the Clawback Policy, ArcelorMittal will recover reasonably
place to work. That means ensuring employees feel safe,
promptly erroneously paid Covered Compensation in the event it
respected and valued. It also means building a culture that
is required to prepare an accounting restatement due to the
constantly keeps employees committed, motivated, encouraged
material noncompliance of ArcelorMittal with any financial
to learn and eager to perform at their best. In 2023, to attract
reporting requirement under the U.S. securities laws, including
diverse talents, the Company refreshed its Employee Value
any required accounting restatement to correct an error in a
Proposition by launching new talent attraction and retention
previously issued financial statement that is material to the
messaging and materials to better communicate the benefits,
previously issued financial statement, or that would result in a
value and impact of working at ArcelorMittal. This effort led to an
material misstatement if the error were corrected in the current
increase in visitors to the external career page on the corporate
period or left uncorrected in the current period.
website. Internally, the Company launched new communications
Employees initiatives to increase the visibility of global career opportunities,
which gave a boost to internal job applications throughout the
As of December 31, 2023, ArcelorMittal employed approximately
year.
126,756 full time equivalents ("FTE") employees directly, as well

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Employee development, including succession planning and throughout ArcelorMittal University, further expanding its global
the development of young talent, is also crucial in building a community. Across the Group, employees invested an average
high-performing organization. The Company aims to have a of 5.9 hours each, a 15% increase year-on-year. More than
clear career pathway for employees, supported with ongoing 101,000 active learners dedicated more than 600,000 online
initiatives to build their technical capabilities through training. learning hours (an increase of 64% year-on-year) to digital
ArcelorMittal has programs designed to spot people with learning. A large proportion of these hours were dedicated
potential and manage the succession of key roles, as part of specifically to Health & Safety ("H&S"), with more than 320,000
its overall strategic workforce planning process, which is course completions across various H&S learning programs.
overseen by the ARCG Committee. Strategic workforce
planning is a key element of business unit quarterly reviews. The Company continued to offer world class leadership
programs to its talents and future leaders as part of the
In 2023, the Company continued to harness skills and Leadership Pipeline learning journeys. This year, more than 280
resources and has stepped up its efforts to identify and HiPos graduated from these flagship journeys. Across all ten
accelerate the development and readiness of its High cohorts of learners, 29% of participants were women.
Potential employees ("HiPos") to take on increased
responsibilities. This has been achieved by having the right Another important program is the ArcelorMittal's Group
people in the right place at the right time; identifying people Mentoring Program, which is designed to provide all
for key succession plans; anticipating and filling vacancies; ArcelorMittal employees an opportunity to participate in a
ensuring a healthy and diverse leadership pipeline; nurturing mentoring relationship with a group mentor. By the end of
internally the generations of tomorrow and preparing future 2023, there were more than 2,400 mentoring hours invested,
leaders; encouraging individual performance and making demonstrating an increase of 70% year-to-year. As of
sustainable performance gains; and ensuring the retention of December 31, 2023, 36% of active mentors and mentees
HiPos, through acknowledgement, empowerment, motivation were women.
and challenges.
In addition, the Company deployed a global Human Capital
An effective succession planning process is based on open Management system which provides unification of the
career discussions with HiPos. Every HiPo has a career Company's employee systems around recruitment,
counselling discussion with his/her manager and HR, which performance, succession planning, career development and
focuses on the ‘right casting for the role’ to determine fit, learning. This provides enhanced infrastructure necessary to
readiness and match with individual drivers and motivations. analyze data and identify areas for continuous improvement
The outcome of this discussion is used in the succession at ArcelorMittal. Continued progress was achieved with
planning process. To continue accelerating the development implementation of various modules globally: 10 rollout
of HiPos, the Company in 2023 strengthened the quality of projects completed for Recruitment and three for
its succession planning to ensure better alignment between Onboarding. Moreover, rollouts and pilots for other modules
the nomination of potential successors and their career were initiated: five roll-out projects for Recruitment, four for
aspirations. The Company also redesigned its Leadership Learning, one pilot for Total Rewards and one pilot for
Pipeline learning journeys, to better adapt to its evolving Performance.
business needs following the COVID-19 pandemic. The
Speak Up +, the new global employee survey
programs are partly personalized, based on assessments.
For the past few years, the ArcelorMittal's Speak Up +
They are customized and delivered through a blended format
survey (which was formerly called Speak Up!) has been the
of face-to-face (when available) and digital.
Group’s flagship employee engagement survey, designed to
ArcelorMittal's Talent Acceleration Pool ("TAP"), an assess professionals and leadership opinion regarding how
accelerated development program for HiPos with the they feel about working at ArcelorMittal, what the Company
potential to reach at least Manager level, also provides does well and, if there are areas where they believe it falls
consistent and structured development opportunities. TAP 2, short, how they can be improved.
which was launched in 2021, was successfully concluded in
In 2023, ArcelorMittal listened to employees' voices through
2023, with a revised approach for the two-year program
the Speak Up + surveys, which serve as the ongoing vehicle
management. The program included 78 participants from 21
to support the Company’s leaders in closely keeping a finger
nationalities, of which 23 were women (30%).
on the pulse of the organization, in a rapidly changing
Since shifting its learning and development approach in environment. The goal is to understand how the engagement
response to COVID-19 pandemic, the Company has continued of ArcelorMittal people worldwide evolves by regularly
to see significant growth in 2023 in active virtual learning
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listening to their aspirations and concerns and to empower succession plan. The Diversity and Inclusion Panel, formerly
leaders to spot and resolve potential issues quickly. called the Diversity and Inclusion Council, steers the Group
Diversity and Inclusion ("D&I") performance and progress. In
The survey occurs a few times throughout the year and 2022, the Company defined a clear roadmap to improve and
includes questions related to engagement, health & safety, transform on D&I. One of the key initiatives launched was
well-being, values and diversity & inclusion. The outcomes the D&I maturity assessment; wave one representing 50% of
from each Speak Up + survey are compared to multiple the Group's segments, concluded in 2022, and wave two
benchmarks, internally and over time, and externally against covering the remaining segments concluded in 2023. The
industry peers. This enables the Company’s leaders to spot maturity assessment supports the Company's identification
specific strengths and risks, e.g. attrition risk, and to define of key areas of improvement in two spheres (behavioral and
actions to improve employee engagement. structural) and into five perspectives (compliance,
awareness, talent integration, operation integration and
Concrete actions to address employees’ concerns are
market integration).
continuously defined and implemented across the Group
based on the outcomes of the Speak Up + survey rounds to In 2023, 17.3% of management positions were held by
effectively drive employee engagement. women across the Group, a 1.6% increase as compared to
2022, and 59% of key positions have at least one woman
Diversity and inclusion
assigned as successor - those who are expected to take
ArcelorMittal values diversity as a way of bringing fresh
over senior manager positions at the General Manager level
perspectives and experiences to the business and as part of
and above.
its ambition to be an employer of choice. The Company has
a presence in over 60 countries and employees from many In line with the worldwide effort to increase gender diversity
more and its diversity & inclusion policy aims to encompass at the board of directors level, ArcelorMittal surpassed its
different cultures, generations, genders, ethnic groups, goal of increasing the number of women on the Board of
nationalities, abilities, and social backgrounds. Directors to at least three by the end of 2015. In 2023, four of
the ten positions on the Board of Directors were held by
ArcelorMittal’s senior management is committed to building a
women.
more inclusive culture and recruiting, retaining, and
promoting more diverse talent, focusing first on gender parity A number of programs are in place to develop women and
given the steel industry has historically been male other diverse talents as leaders. These are supported by
dominated. The Company also recognizes the increasing various initiatives including training programs for women
expectations of stakeholders, including employees and employees, mentoring and coaching, networking, and role
investors, to report on progress in this area. In 2020, the model involvement. This is aligned with a commitment to
Company benchmarked its diversity & inclusion policies support future leaders in science, technology, engineering
against other companies to identify gaps and opportunities, and mathematics ("STEM"). In 2023, the Company
engaged with several stakeholders on this topic and continued to run initiatives in all segments, including
developed a strategy to make improvements. The topic was participation in the TopWomenTech in Europe and
thoroughly discussed at the ARCG Committee and had the partnerships with universities and schools, campaigns and
full attention and support of both the Executive Chairman job fairs focused on attracting women applicants with STEM
and the CEO. As a result of this initiative, the Company backgrounds.
announced new plans to double the number of women at
leadership positions within the next decade. By 2030, the In 2023, ArcelorMittal University continued to make Diversity,
aim is to reach 25% management positions held by women. Equity and Inclusion ("DE&I") a priority with dedicated live
global and local training sessions, digital courses covering
To achieve this figure, the Company continuously reviews its topics like unconscious bias and embracing equity, and
policies and HR practices to build an inclusive culture that inclusive leadership trainings to help managers to manage
empowers all diverse talents; address unconscious bias and interactions between different cultural perspectives and
discrimination through learning programs; and maintain communication styles. Additionally, a virtual program
gender balance in its recruitment shortlists (either internal or celebrating International Women’s Day registered over 830
external) for all professional and leadership positions. To attendees.
improve the gender balance in its leadership positions, the
Company's Executive Office oversees an annual career ArcelorMittal's initiatives in a number of countries support
development planning process, which includes the target people with disabilities in the workplace. In Brazil, there is a
minimum of one woman in every senior management robust D&I program, which is governed by the Executive

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Committee, National D&I Committee and a Committee per sets out minimum standards for every site where the Company
each key area (Gender, People with Disabilities, Racial, operates with the objective of achieving world-class
LGBTI+). Brazil strengthened its project PertenSER (Belong) performance. As a result of this agreement, the Joint Global
by introducing a masculinity class in 2023. Another initiative H&S Committee, composed of 12 representatives in 2023 (14 in
in Brazil focuses on the need for humanized communication 2022) of management and the unions was created to identify
with deaf colleagues at workplace using LIBRAS, which is a areas for improvement and harmonize safety performance
gestural-visual language, used by the Brazilian deaf across the Group. The Joint Global H&S Committee only deals
community. South Africa runs a Women of Steel initiative to with issues related to H&S and does not act as a negotiation
support HiPo women working in critical positions or on committee on behalf of unions or management. One of its
succession plans by providing them with additional primary priorities is centered around overseeing deployment and
development training opportunities and finding time for them monitoring the compliance of local joint H&S panels. This
to engage with senior leaders. In Europe, ArcelorMittal involves developing guidelines to progress and training
continued its D&I campaign, expanded its Women programs, conducting site visits to assess implementation and
Interviewing Women podcast, participated in career fairs and offering suggestions for improvement. Additionally, the Joint
engaged with universities and schools for multiple learning Global H&S Committee provides recommendations on
activities, including providing the inclusive leadership training transversal and global topics to enhance overall safety
to segment management committee. In North America, measures.
ArcelorMittal increased its engagement with the community -
In 2023, one virtual meeting was organized at the Group level to
internally as well as externally, by participating in and
discuss transversal specific topics with regard to H&S. In
sponsoring local events; promoting careers in manufacturing
addition, other safety training and coaching programs, including
business and STEM careers; and sponsoring Diversity,
the "Safety Leadership" and "Take Care" Trainings as well as a
Equity and Inclusion actions in the local community among
dss+ lead “Area of Transformation” program continued to be
others.
rolled out in 2023 in order to support the “Journey to Zero”
Collective Labor Agreements ("CLAs") program aimed at reducing the amount of injuries and fatalities
In multiple regions globally, ArcelorMittal employees are in the Company to zero. See “Business overview—Sustainable
represented by trade unions and the Company actively development—Health and Safety.”
engages in collective bargaining agreements with employee
In 2023, several entities and countries engaged in entering or
organizations at specific locations. The description below
renewal of collective labor agreements (“CLAs”).
provides an overview of the current status of specific
agreement and relationships. At AMLPC, unionized employees at Contrecoeur West continue
to work under an agreement with the United Steel Workers
The Company is committed to open, respectful and transparent
("USW") renewed in July 2020 and expiring in July 2026. The
social dialogue at all of its operations, to maintain strong
unionized employees at Contrecoeur East and Longueuil
employee relations, and to provide a safe, healthy and quality
continue to work under a six-year agreement with the USW that
working lives for all its workers.
renewed in February 2022 and will expire in January 2028. The
In the current inflationary environment, the Company CLA with USW covering the Contrecoeur Scrap Recycling
understands that salary increases for workers is a question of Center employees signed in 2022 is valid for a six-year term,
high sensitivity. ArcelorMittal is respecting its commitment to expiring in May 2028. The collective agreement with USW at
social dialogue and all entities have regular discussions and Hamilton-East Wire which was renewed in July 2021 for a five-
negotiations on salary policy with their respective unions. year term is still valid and it will expire on May 30, 2026. The
Several salary negotiations were conducted in 2023 and agreement with USW at St-Patrick Wire expired in December
resulted in social agreements including salary increases, for 2023 and is currently under negotiations.
instance, in South America and in South Africa. In some
ArcelorMittal Mexico and the National Miners Union agreed to a
countries like Belgium and Luxembourg, indexation linked to
new one-year contract effective August 1, 2023. ArcelorMittal
inflation is legally foreseen. In countries with extremely high
Mexico continues to explore opportunities with the union to
inflation such as Argentina and Turkey, several salary reviews
improve workforce productivity, efficiency and competitiveness.
were implemented during 2023.
ArcelorMittal Tubular Products Shelby continues to work under
The Joint Global Health and Safety Agreement between the
an agreement with the USW which was renewed in November
Company and IndustriALL global trade union, signed in 2008,
2021 and will expire on October 31, 2025.
remained in effect in 2023. This agreement recognizes the vital
role played by trade unions in improving health and safety. It
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ArcelorMittal Tubular Products Woodstock continues to work accidental falls injuring employees). Concurrently, negotiations
under an agreement with UNIFOR which was renewed in aiming at revising certain aspects of the EWC agreement are
February 2021 and will expire on April 1, 2024. expected to reach a resolution in the first quarter of 2024.

ArcelorMittal Tubular Products Brampton continues to work In France, a one-year salary agreement for 2024 was
under an agreement with the USW which was renewed in successfully negotiated and signed with unions in December
December 2021 and will expire in September 2025. 2023, covering most of the legal entities. Concurrently, ongoing
negotiations or discussions for salary agreement are underway
At ArcelorMittal Tubular Products Monterrey, the collective in certain entities, with anticipated resolutions in the first quarter
agreement with the National Federation of Independent Unions of 2024. Regular meetings with national representatives of
was renewed effective February 2023 for a one-year period. major trade unions have been conducted to facilitate the
Negotiations with the union for the new period started in exchange of information on ArcelorMittal's activities and to
February 2024 and are still ongoing. address key challenges confronting the steel industry.
Furthermore, the introduction of the new national collective
At ArcelorMittal USA Research, a new three-year agreement
bargaining in the metal sector has necessitated a complete
was signed in 2022 with USW and remains valid.
restructuring of job classifications. This adjustment came into
In Brazil, the inflation rate remained relatively low compared to effect in January 2024. In parallel, numerous social negotiations
previous years, despite economic uncertainties during the first either at the country or at local level, have been conducted to
year of President Lula’s government. Out of the 53 collective accommodate the implications of this new collective bargaining
agreements negotiated in 2022, 14 were specifically designed to in the metal sector.
adjust salaries based on the inflation rate which fluctuated
In Luxembourg, the CLA underwent a renegotiation process
between 3.83% and 4.51%.
resulting in the signing of a new agreement in September 2023.
In Argentina, blue-collar employees from Acindar were granted a This agreement was finalized in collaboration with
substantial salary increase of 183.9% aligning with the inflation representatives from the two unions associated with the
rate up to December 2023 (211.2%). Despite this, the inflation Company. Key highlights for 2023 included the continued
has remained persistently high and projections suggest that it monitoring of the on-going Job Retention Plan involving the
could reach 180% for the entire year. The country is currently Government and the unions. This plan is primarily centered on
navigating through challenging macroeconomic trends, commitments related to investments, unemployment
complicated by a recent change in government. After management and pre-retirement initiatives. Furthermore, during
experiencing a considerable devaluation and heightened the year, initiatives were launched to strengthen H&S culture
inflation by December 2023, ongoing discussions with trade through dedicated coaching programs. Moreover, a significant
unions regarding a new agreement are still underway, reflecting emphasis was placed on on diversity, inclusion and well-being.
the need for adaptive measures in this complex economic This commitment was concretized in the introduction of
context. programs such as the First Mental Aid program, resulting in the
certification of 140 individuals. Additionally, a harassment
In Costa Rica, the government maintained its projected inflation prevention program was implemented with full participation from
rate for 2023. However, a significant exchange effect occurred, the workforce in Luxembourg.
resulting in the local currency strengthening against the U.S.
dollar. Despite a stable political situation in the country, there is In Belgium, the negotiations with trade unions for the new CLA
an ongoing struggle between the different factions opposing framework for 2023-2024 were successfully concluded. Despite
President Chavez of Venezuela. On the labor front, there is a inflation pressures, expectations were optimistic, largely
measure of stability and employees from ArcelorMittal Costa attributed to the highly competitive labor market. The
Rica were granted a 7% adjustment, in alignment with the negotiations were smoothly finalized in the first round, with
inflation rate of 7.26%). significant social actions.

In Europe, four meetings were conducted in 2023 to inform the In Germany, the first half of 2023 experienced favorable market
European Works Council ("EWC") representatives about the conditions but a shift occurred in the second half. Despite
H&S and business scenario within the Company's European persistent high energy prices, lower inflation contributed to
operations. Throughout the year, three meetings with the Select weakened market conditions. Hamburg, in particular, faced
Committee were held, alongside a Plenary Assembly in economic unemployment. However, other plants successfully
December 2023. H&S remained a prominent focus, with navigated the challenges. CLA negotiations were successfully
members of the dedicated working group undergoing training on concluded in December 2023 with the agreement set to last until
the golden rule pertaining to working at height (to prevent September 30, 2025. In addition, there was a commitment to
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develop a collective agreement on job security in the In Spain, as in the rest of the world, 2023 marked a period of
transformation by June 30, 2024, alongside a legally-based consolidation following the COVID -19 pandemic, with many
agreement for retirement. H&S measures have been integrated business indicators returning to pre-pandemic levels. However,
into daily operations with the implementation of take-care- the repercussions of conflicts in Ukraine, Palestine and the Red
trainings, especially the `TAKE-CARE III' campaign and the Sea in the last weeks of 2023 hindered a complete recovery. As
SAFE-campaign. The social partners engaged in two meetings a consequence, adjustments to resources in various Spanish
within the social dialogue group, one digitally and one in person. companies were necessary due to a decline in demand. A
In September 2023, representatives from all work councils in temporary layoff plan was collaboratively agreed and signed
Germany met in Eisenhüttenstadt. Throughout the year, the with the legal representatives of the employees in the fourth
union actively supported the Company in its transformation quarter of 2023. Moreover, after several months of negotiations,
plans within an evolving political landscape. There were several a framework agreement governing labor relations across all
union protests (with a major event held in front of the Finance legal entities in Spain was successfully signed with the majority
Ministry in November 2023), advocating for essential frame of unions in May 2023. Lastly, in alignment with the
conditions, clarification on outstanding state aid and the Memorandum of Understanding established between
implementation of industry electricity price policies. ArcelorMittal and the Spanish government in July 2021 to
promote decarbonization, ongoing discussions with unions
In 2023, the commitment to fostering social dialogue at persisted to address the labor implications of this strategic
ArcelorMittal Poland remained a key focus. One crucial initiative. At the end of 2023, notable social challenges emerged
objective was to address the well being of employees in this context.
undergoing business transformations, using agreed rules with
trade unions to mitigate the social impacts of restructuring The situation in Ukraine remained difficult from employees'
processes. The agreement specifically outlined protocols for perspective in 2023 because of the war with Russia. The martial
supporting employees in reduced positions. Collaboration law imposed by the government in the country starting February
extended to adapting to changes in the production landscape 2022 which among other things restricted labor rights of
prompted by market demands. This involved changing the employees and trade unions (e.g. a right to strike; a right for
employee work systems and reassigning individuals to new vacation etc.) remains in force. In 2023 more than 2,900 AMKR
roles, with ongoing cooperation through H&S forums and shop employees were conscripted into the army and another 157 died
floor meetings to enhance understanding and cultivate a in war. AMKR maintained jobs and salaries for 22,000 of its
cultured centered around H&S goals among social partners. In employees; however, approximately 10,000 thousand
response to decreased coke production leading to the idling of employees are on downtime and were paid only two-thirds of
the coke plant in Kraków, ArcelorMittal Poland negotiated an their wages.
agreement on the Rules of Conduct with trade unions. This
agreement outlined procedures for transferring affected In South Africa, out of the 6,617 employees at ArcelorMittal
employees to other positions and managing remaining holidays South Africa ("AMSA"), 4,519 employees form part of the
or periods of economical unemployment. A CLA for 2023 was bargaining unit and are covered by a deferred CLA concluded in
successfully negotiated, and social fund regulations for 2023 March 2023 with the recognized unions, NUMSA and Solidarity.
and 2024 were agreed with trade unions. CLA negotiations for This CLA will expire in March 2026. From April 2023 to March
2024 were initiated in December 2023. Throughout the year, 2024, the agreement comprised a range of provisions
regular meetings with trade unions occurred to collaborate on encompassing a 6.5% remuneration adjustment for all
various fronts, including workers protection, production employees within the bargaining unit. It further incorporated an
considerations and effective communication during crises, ex-gratia premium, enhancements to the medical aid subsidy
notably those arising from the uncertainties due to the war in and a 6.5% increase in all allowances excluding retention and
Ukraine and other market conditions. Leadership involvement protected allowances. For the second and third years until
was characterized with CEO proximity meetings held in plants March 2026, there will be incremental increases in wages,
and monthly interactions with trade union leaders. The medical aid subsidies and all allowances. These increases will
cooperation with trade unions extended nationally to contribute be tied to the Consumer Price Index (CPI) with a cap set at
to the transformation of the steel industry. Although not legally 6.5%. Moreover, the company’s contribution to medical aid will
required, the management of ArcelorMittal Poland continued to progressively rise, reaching 70% by 2026 while the employee’s
invite 2 members from the trade union leadership to the contribution will decrease to 30%. On November 28, 2023,
Supervisory Board, fostering constructive social dialogue at the AMSA announced the possible winding down of operations
highest levels of company management and reflecting a including iron making Newcastle and Long Steel products as
commitment to transparency and inclusive decision-making well as the potential reorganization of support services and
processes. management levels across the company. Subsequent to the

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announcement there have been numerous engagements with Stock Exchange Listed Company Manual as applicable to
Government representatives inter alia Ministers of Economic foreign private issuers. There are no significant differences
Development, Public Enterprises and Finance including the between the corporate governance practices of ArcelorMittal
Provincial and Regional Structures with a view to see to which and those required of a U.S. domestic issuer under the Listed
extent some support could be provided by the State to mitigate Company Manual of the New York Stock Exchange.
or prevent the closure of these operations. As a result of these
discussions and consultation sessions, on February 8, 2024, an Board of Directors
announcement was made to defer the winding down of the Long
Steel products business for a period of up to six months. In 10 Members
parallel to these discussions, engagements with organized
labour have also continued. Discussions under Section 189 with
organized labour in accordance with Labour Relations Act
began in December 2023 with the aim to be concluded by the 2
end of February 2024. The consultation process with labour is
continuing with the objective of reaching an agreement, while
alternative options are further explored.
8
Throughout 2023, ArcelorMittal Mining maintained a productive
engagement with its trade unions and communities where it 6
operates. Following the industrial action in ArcelorMittal Liberia
in May 2023, the mining segment's relationship with trade
unions in Liberia has been improved. The current agreement is
expiring in the second quarter of 2024. A negotiation priority was
established and a negotiation team was formed. The
negotiations are planned to start in March 2024 with an aim to
Non-executive directors
conclude by the end of the second quarter of 2024.
Independent directors
Executive directors (CEO and Executive Chairman)
Corporate governance
This section describes the corporate governance practices of
ArcelorMittal for the year ended December 31, 2023.

Board of Directors and senior management Average age and serving period of
board members
ArcelorMittal is governed by a Board of Directors and managed
by the senior management. As described in "Directors and
senior management" above, ArcelorMittal’s senior management
is comprised of the Executive Office - comprising the Executive
Chairman, Mr. Lakshmi N. Mittal and the CEO, Mr. Aditya Mittal.
9
The Executive Office is supported by a team of nine other
Executive Officers, who together encompass the key regions
and corporate functions.
A number of corporate governance provisions in the Articles of
Association of ArcelorMittal reflect provisions of the
Memorandum of Understanding signed on June 25, 2006 (prior 60
to Mittal Steel Company N.V.’s merger with Arcelor), amended in
April 2008 and which mostly expired on August 1, 2009. For
more information about the Memorandum of Understanding, see
“Additional information—Material contracts—Memorandum of
Understanding”. Average years on Board
Average age of directors
ArcelorMittal fully complies with the 10 Principles of Corporate
Governance of the Luxembourg Stock Exchange. This is
explained in more detail in “—Other corporate governance
practices” below. ArcelorMittal also complies with the New York
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 Management report

reason, the remaining members of the Board of Directors may

Gender representation on board by a simple majority elect a new director to temporarily fulfill the
duties attaching to the vacant post until the next general
meeting of the shareholders.

For further information on the composition of the Board of

Directors, including the expiration of each Director’s term and
the period during which each Director has served, see section
"—Directors and senior management " above.
40%
Mr. Lakshmi N. Mittal was elected Chairman of the Board of
Directors on May 13, 2008. Mr. Lakshmi N. Mittal was also
60% ArcelorMittal’s CEO until February 11, 2021. Mr. Lakshmi N.
Mittal was re-elected to the Board of Directors for a three-year
term at the annual general meeting of shareholders on May 2,
2023.

A director is considered “independent” if:

(a) he or she is independent within the meaning of the

Women Men New York Stock Exchange Listed Company Manual, as
applicable to foreign private issuers,

(b) he or she is unaffiliated with any shareholder owning or

The Board of Directors is in charge of the overall governance
controlling more than two percent of the total issued
and direction of ArcelorMittal. It is responsible for the
share capital of ArcelorMittal, and
performance of all acts of administration necessary or useful in
furtherance of the corporate purpose of ArcelorMittal, except for (c) the Board of Directors makes an affirmative
matters reserved by Luxembourg law or the Articles of determination to this effect.
Association to the general meeting of shareholders. The Articles
of Association provide that the Board of Directors is composed For these purposes, a person is deemed affiliated to a
of a minimum of 3 and a maximum of 18 members. shareholder if he or she is an executive officer, a director who
also is an employee, a general partner, a managing member or
The Articles of Association provide that directors are elected and a controlling shareholder of such shareholder. The 10 Principles
removed by the general meeting of shareholders by a simple of Governance of the Luxembourg Stock Exchange, which
majority of votes cast. Other than as set out in the Company’s constitute ArcelorMittal's domestic corporate governance code,
Articles of Association, no shareholder has any specific right to require ArcelorMittal to define the independence criteria that
nominate, elect or remove directors. Directors are elected by the apply to its directors, which are described in article 8.1 of its
general meeting of shareholders for three-year terms. In the Articles of Association.
event that a vacancy arises on the Board of Directors for any

Specific characteristics of the director role

Required share
Maximum 12 May not serve on Required to sign the
ownership Company’s Code of
year service the boards of directors of
Lead Independent Director - minimum of 6,000
(independent more than four Business Conduct
ordinary shares publicly listed companies (non- and confirm their adherence
Non-executive directors - minimum of 4,000 directors) executive directors) annually
ordinary shares

The Company’s Articles of Association do not require directors it is in the best interests of all shareholders for all non-executive
to be shareholders of the Company. The Board of Directors directors to acquire and hold a minimum number of ArcelorMittal
nevertheless adopted a share ownership policy on October 30, ordinary shares in order to better align their long-term interests
2012, that was amended on November 7, 2017, considering that with those of ArcelorMittal’s shareholders. The Board of

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Directors believes that this share ownership policy will result in a resignation to the Chairman of the Board of Directors, who
meaningful holding of ArcelorMittal shares by each non- would decide to accept the resignation or not.
executive director, while at the same time taking into account
the fact that the share ownership requirement should not be None of the members of the Board of Directors, including the
excessive in order not to unnecessarily limit the pool of available executive directors, have entered into service contracts with
candidates for appointment to the Board of Directors. Directors ArcelorMittal or any of its subsidiaries that provide for any form
must hold their shares directly or indirectly, and as sole or joint of remuneration or for benefits upon the termination of their
beneficiary owner (e.g., with a spouse or minor children), at the term. All non-executive Directors of the Company signed the
latest within three years of his or her election to the Board of Company’s Appointment Letter, which confirms the conditions of
Directors. Each director will hold the shares acquired on the their appointment by the General Meeting of the Shareholders
basis of this policy for so long as he or she serves on the Board including compliance with certain non-compete provisions, the
of Directors. Directors purchasing shares in compliance with this 10 Principles of Corporate Governance of the Luxembourg
policy must comply with the ArcelorMittal Insider Dealing Stock Exchange and the Company’s Code of Business Conduct.
Regulations and, in particular, refrain from trading during any
The remuneration of the members of the Board of Directors is
restricted period, including any such period that may apply
determined on a yearly basis by the annual general meeting of
immediately after the Director’s departure from the Board of
shareholders.
Directors for any reason.
Share transactions by management
On October 30, 2012, the Board of Directors also adopted a
In compliance with laws prohibiting insider dealing, the Board of
policy that places limitations on the terms of independent
Directors of ArcelorMittal has adopted insider dealing
directors as well as the number of directorships that directors
regulations, which apply throughout the ArcelorMittal group.
may hold in order to align the Company’s corporate governance
These regulations are designed to ensure that insider
practices with best practices in this area (as highlighted in the
information is treated appropriately within the Company and
table above). Nevertheless, the Board of Directors may, by way
avoid insider dealing and market manipulation. Any breach of
of exception to this rule, make an affirmative determination, on a
the rules set out in this procedure may lead to criminal or civil
case-by-case basis, that a Director may continue to serve
charges against the individuals involved, as well as disciplinary
beyond the 12-year rule if the Board of Directors considers it to
action by the Company.
be in the best interest of the Company based on the contribution
of the Director involved taking into consideration the balance Operation
between the knowledge, skills, experience of the director and General
the need for renewal of the Board. The Board of Directors and the Board committees may engage
the services of external experts or advisers as well as take all
As membership of the Board of Directors represents a
actions necessary or useful to implement the Company’s
significant time commitment, the policy requires both executive
corporate purpose. The Board of Directors (including its three
and non-executive directors to devote sufficient time to the
committees) has its own budget, which covers functioning costs
discharge of their duties as a Director of ArcelorMittal. Directors
such as external consultants, continuing education activities for
are therefore required to consult with the Chairman and the
directors and travel expenses.
Lead Independent Director before accepting any additional
commitment that could conflict with or impact the time they can Meetings
devote to their role as a Director of ArcelorMittal. A non- The Board of Directors meets when convened by the Chairman
executive Director’s service on the board of directors of any of the Board or any two members of the Board of Directors. The
subsidiary or affiliate of ArcelorMittal or of any non-publicly listed Board of Directors holds physical meetings at least on a
company is not taken into account for purposes of complying quarterly basis as five regular meetings are scheduled per year.
with the service limitation. The Board of Directors holds additional meetings if and when
circumstances require, in person or by teleconference and can
Although non-executive directors of ArcelorMittal who change
take decisions by written circulation, provided that all members
their principal occupation or business association are not
of the Board of Directors agree.
necessarily required to leave the Board of Directors, the policy
requires each non-executive director, in such circumstances, to In 2023, the Board of Directors held 8 meetings with 100% of
promptly inform the Board of Directors of the action he or she is the average attendance rate.
contemplating. Should the Board of Directors determine that the
contemplated action would generate a conflict of interest, such
non-executive director would be asked to tender his or her

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performance of the committees. The process is supported by

the Company Secretary under the supervision of the Chairman
8 meetings 100% Average and the Lead Independent Director. The findings of the self-
(2023) attendance rate evaluation process are examined by the ARCG Committee and
presented with recommendations from the ARCG Committee to
the Board of Directors for adoption and implementation.
Suggestions for improvement of the Board of Directors’ process
In order for a meeting of the Board of Directors to be validly
based on the prior year’s performance and functioning are
held, a majority of the directors must be present or represented,
implemented during the following year.
including at least a majority of the independent directors. In the
absence of the Chairman, the Board of Directors will appoint a The 2023 Board of Directors’ self-evaluation was completed by
chairman by majority vote for the meeting in question. The the Board on February 7, 2024. The Board of Directors was of
Chairman may decide not to participate in a Board of Directors’ the opinion that it and the management had cooperated
meeting, provided he has given a proxy to one of the directors successfully during 2023. Strong focus has continued to be
who will be present at the meeting. For any meeting of the given on health and safety, decarbonization, sustainability, on
Board of Directors, a director may designate another director to joint venture performance and structure, on shareholders
represent him or her and vote in his or her name, provided that returns including share buyback, on policies including
the director so designated may not represent more than one of incorporation of ESG criteria, but also on deployment of capital
his or her colleagues at any time. in the long term future. The Board of Directors reviewed the
practical implementation of the governance structure and
Each director has one vote and none of the directors, including
thought it was working well. The Board set new priorities for
the Chairman, has a casting vote. Decisions of the Board of
discussion and review and identified a number of priority topics
Directors are made by a majority of the directors present and
for 2024.
represented at a validly constituted meeting, except for the
decisions of the Board of Directors relating to the issue of any The Board of Directors believes that its members have the
financial instruments carrying or potentially carrying a right to appropriate range of skills, knowledge and experience, as well
equity pursuant to the authorization conferred by article 5.5 of as the degree of diversity necessary to enable it to effectively
the Articles of Association, which shall be taken by a majority of govern the business. The Board of Directors composition is
two-thirds of the directors present or represented at a validly reviewed on a regular basis and additional skills and experience
constituted meeting. are actively searched for in line with the expected development
of ArcelorMittal’s business as and when appropriate.
Lead Independent Director
Mrs. Karyn Ovelmen was elected by the Board of Directors as Required skills, experience and other personal characteristics
ArcelorMittal's Lead Independent Director at the board meeting Diverse skills, backgrounds, knowledge, experience, geographic
held on May 2, 2023. location, nationalities and gender are required in order to
effectively govern a global business the size of the Company’s
The agenda of each meeting of the Board of Directors is
operations. The Board of Directors and its committees are
decided jointly by the Chairman of the Board of Directors and
therefore required to ensure that the Board has the right balance
the Lead Independent Director.
of skills, experience, independence and knowledge necessary to
Separate meetings of independent directors perform its role in accordance with the highest standards of
The independent members of the Board of Directors may governance.
schedule meetings outside the presence of non-independent
The Company’s directors must demonstrate unquestioned
directors. Three meetings of the independent directors outside
honesty and integrity, preparedness to question, challenge and
the presence of management were held in 2023.
critique constructively, and a willingness to understand and
Annual self-evaluation commit to the highest standards of governance. They must be
The Board of Directors decided in 2008 to start conducting an committed to the collective decision-making process of the
annual self-evaluation of its functioning in order to identify Board of Directors and must be able to debate issues openly
potential areas for improvement. The first self-evaluation and constructively, and question or challenge the opinions of
process was carried out in early 2009. The self-evaluation others. Directors must also commit themselves to remain
process includes structured interviews between the Lead actively involved in Board decisions and apply strategic thought
Independent Director and each director and covers the overall to matters at issue. They must be clear communicators and
performance of the Board of Directors, its relations with senior good listeners who actively contribute to the Board in a collegial
management, the performance of individual directors, and the manner. Each director must also ensure that no decision or
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 Management report

action is taken that places his or her interests before the • considers the skills, backgrounds, knowledge,
interests of the business. Each director has an obligation to experience and diversity of geographic location,
protect and advance the interests of the Company and must nationality and gender necessary to allow it to meet the
refrain from any conduct that would harm it. corporate purpose;

In order to govern effectively, non-executive directors must have • assesses the skills, backgrounds, knowledge,
a clear understanding of the Company’s strategy, and a experience and diversity currently represented;
thorough knowledge of the ArcelorMittal group and the
industries in which it operates. Non-executive directors must be • identifies any inadequate representation of those
sufficiently familiar with the Company’s core business to attributes and agrees the process necessary to ensure
effectively contribute to the development of strategy and monitor a candidate is selected who brings them to the Board
performance. of Directors; and

With specific regard to the non-executive directors of the • reviews how Board performance might be enhanced,
Company, the composition of the group of non-executive both at an individual director level and for the Board as
directors should be such that the combination of experience, a whole.
knowledge and independence of its members allows the Board
The Board believes that orderly succession and renewal is
to fulfill its obligations towards the Company and other
achieved through careful planning and by continuously
stakeholders in the best possible manner.
reviewing the composition of the Board.
The ARCG Committee ensures that the Board of Directors is
When considering new appointments to the Board, the ARCG
comprised of high-caliber individuals whose background, skills,
Committee oversees the preparation of a position specification
experience and personal characteristics enhance the overall
that is provided to an independent recruitment firm retained to
profile of the Board and meets its needs and diversity
conduct a global search, taking into account, among other
aspirations by nominating high quality candidates for election to
factors, geographic location, nationality and gender. In addition
the Board by the general meeting of shareholders.
to the specific skills, knowledge and experience required of the
Board profile candidate, the specification contains the criteria set out in the
The key skills and experience of the directors, and the extent to ArcelorMittal Board profile.
which they are represented on the Board of Directors and its
Diversity
committees, are set out below. In summary, the non-executive
In line with the worldwide effort to increase gender diversity on
directors contribute:
the boards of directors of listed and unlisted companies, the
Board met its goal of increasing the number of women on the
Board to at least three by the end of 2015 with the election of
Mrs. Karyn Ovelmen in May 2015. Out of 10 members of the
Board of Directors, women represented 40% in 2023. The
ArcelorMittal Board’s diversity not only relates to gender, but
also to the region, background and industry of its members.

Director induction, training and development

The Board considers that the development of the directors’
knowledge of the Company, the steel-making and mining
industries, and the markets in which the Company operates is
an ongoing process. To further bolster the skills and knowledge
of directors, the Company set up a continuous development
program in 2009.

Upon his or her election, each new non-executive director

undertakes an induction program specifically tailored to his or
her needs and includes ArcelorMittal’s long-term vision centered
Renewal on the concept of “Safe Sustainable Steel”.
The Board of Directors plans for its own succession, with the
The Board’s development activities include the provision of
assistance of the ARCG Committee. In doing this, the Board of
regular updates to directors on each of the Company’s products
Directors:
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 Management report

and markets. Non-executive directors may also participate in opportunities to be tailored to the directors’ committee
training programs designed to maximize the effectiveness of the memberships, as well as the Board of Directors' specific areas
directors throughout their tenure and link in with their individual of focus. In addition, this approach ensures a coordinated
performance evaluations. The training and development process in relation to succession planning, Board renewal,
program may cover not only matters of a business nature, but training, development and committee composition, all of which
also matters falling into the environmental, social and are relevant to the ARCG Committee’s role in securing the
governance area. supply of talent to the Board.

Structured opportunities are provided to build knowledge Board of Directors committees

through initiatives such as visits to plants and mine sites and The Board of Directors has three committees:
business briefings provided at Board meetings. Non-executive
directors also build their Company and industry knowledge • the Audit & Risk Committee,
through the involvement of the Executive Office and other senior • the ARCG Committee, and
employees in Board meetings. Business briefings, site visits and
• the Sustainability Committee.
development sessions underpin and support the Board’s work in
monitoring and overseeing progress towards the corporate Audit & Risk Committee
purpose of creating long-term shareholder value through the
development of the ArcelorMittal business in steel and mining.
4 members
The Company therefore continuously builds directors’ 6 meetings
(100%
knowledge to ensure that the Board remains up-to-date with (2023)
developments within the Company’s segments, as well as independent)
developments in the markets in which the Company operates.

During the year, non-executive directors participated in the In 2023, 6 meetings of the Audit & Risk Committee were held
following activities: with an attendance rate of 100%.

• comprehensive business briefings intended to provide The primary function of the Audit & Risk Committee is to assist
the directors with a deeper understanding of the the Board in fulfilling its oversight responsibilities by reviewing:
Company’s activities, environment, key issues and
strategy of the Company’s segments. These briefings • the integrity of the financial reports and other financial
are provided to the Board of Directors by senior information provided by the Company to any
executives, including Executive Office members. The governmental body or the public;
briefings provided during the course of 2023 covered • the Company’s compliance with legal and regulatory
many areas. In particular, a strong emphasis has been requirements;
given to health and safety processes, fatality
• the registered public accounting firm’s (Independent
prevention, environment and climate change. Specific
Auditor) qualifications and independence;
major acquisitions were reviewed. In addition, cyber
security, risk management, corporate responsibility, • the Company’s system of internal control regarding
carbon reduction strategy in steelmaking, capital finance, accounting, legal compliance, ethics and risk
allocation process and strategy were covered. management that management and the Board have
Business briefings took place at Board and committee established;
meetings;
• the Company’s auditing, accounting and financial
• briefing meetings with the Company executives in reporting processes generally;
charge of specific business segments or markets;
• the identification and management of risks to which the
• site visits of directors to plants and R&D centers. ArcelorMittal group is exposed; and
• development sessions on specific topics of relevance, • conducting investigations into any matters, including
such as health and safety, commodity markets, HR, whistleblower complaints, within its scope of
investor relations, accounting, the world economy, responsibility and obtaining advice from outside legal,
changes in corporate governance standards, directors’ accounting, or other advisers, as necessary, to perform
duties and shareholder feedback. its duties and responsibilities.
The ARCG Committee oversees director training and The Audit & Risk Committee must be composed solely of
development. This approach allows induction and learning independent members of the Board of Directors. The members

213
 Management report

are appointed by the Board of Directors each year after the ARCG Committee makes decisions by a simple majority with no
annual general meeting of shareholders. The Audit & Risk member having a casting vote.
Committee is comprised of four members, all of whom must be
independent under the Company’s corporate governance The Board of Directors has established the ARCG Committee
guidelines, the New York Stock Exchange (NYSE) standards as to:
applicable to foreign private issuers and the 10 Principles of
• determine, on its behalf and on behalf of the
Corporate Governance of the Luxembourg Stock Exchange.
shareholders within agreed terms of reference,
The Audit & Risk Committee makes decisions by a simple
ArcelorMittal’s compensation framework, including
majority with no member having a casting vote.
short and long term incentives for the CEO, the
At least one member must qualify as an "audit committee Executive Chairman and for the nine other Executive
financial expert” as defined by the SEC and determined by the Officers;
Board. • review and approve succession and contingency plans
for key managerial positions at the level of the
At least one member must qualify as an Audit & Risk Committee
Executive Officers;
“risk management expert” having experience in identifying,
assessing, and managing risk exposures of large, complex • consider any candidate for appointment or
companies. reappointment to the Board of Directors at the request
of the Board of Directors and provide advice and
The Audit & Risk Committee currently consists of 4 members: recommendations to it regarding the same;
Mrs. Karyn Ovelmen, Mrs. Patricia Barbizet, Mr. Karel de Gucht
• evaluate the functioning of the Board of Directors and
and Mr. Etienne Schneider, each of whom is an independent
monitor the Board of Directors’ self-evaluation process;
Director according to the NYSE standards and the 10 Principles
of Corporate Governance of the Luxembourg Stock Exchange. • assess the roles of the Chairman and CEO and
The Chairman of the Audit & Risk Committee is Mrs. Karyn deliberate on the merits of the Board’s leadership
Ovelmen who is an “audit committee financial expert” as defined structure to ensure that the most efficient and
by the SEC. Please see “—–Directors and senior management appropriate structure is in place; and
—–Board of Directors” above for Mrs. Ovelmen's experience. • develop, monitor and review corporate governance
principles and corporate responsibility policies
According to its charter, the Audit & Risk Committee is required
applicable to ArcelorMittal, as well as their application
to meet at least four times a year. The Audit & Risk Committee
in practice.
performs an annual self-evaluation and completed its 2023 self-
evaluation on February 7, 2024. The charter of the Audit & Risk During its meeting of July 27, 2021, the Appointment,
Committee is available from ArcelorMittal upon request. Remuneration, Corporate Governance and Sustainability
Committee became again ARCG Committee and the new
Appointments, Remuneration and Corporate Governance Sustainability Committee was created. As a result, ArcelorMittal
Committee complies with the new Principle 9 on companies' corporate
social responsibility introduced subsequently to the revision of
3 members the 10 Principles of the Luxembourg Stock Exchange. According
6 meetings
(100% to Recommendation 9.3 under the Principles, the Board shall
(2023) regularly consider the Company's non-financial risks, including
independent)
social and environmental risks.

The ARCG Committee’s principal criteria in determining the

In 2023, 6 meetings of the ARCG Committee were held, with an
compensation of executives is to encourage and reward
attendance rate of 100%.
performance that will lead to long-term enhancement of
The ARCG Committee is comprised of three directors, each of shareholder value. The ARCG Committee may seek the advice
whom is independent under the New York Stock Exchange of outside experts.
standards as applicable to foreign private issuers and the 10
The three members of the ARCG Committee are Mrs. Karyn
Principles of Corporate Governance of the Luxembourg Stock
Ovelmen, Mrs. Clarissa Lins and Mr. Tye Burt, each of whom is
Exchange.
independent in accordance with the NYSE standards applicable
The members are appointed by the Board of Directors each to foreign private issuers and the 10 Principles of Corporate
year after the annual general meeting of shareholders. The

214
 Management report

Governance of the Luxembourg Stock Exchange. The Chairman The primary function of the SC is to assist the Board of Directors
of the ARCG Committee is Mrs. Karyn Ovelmen. on the following areas:

The ARCG Committee is required to meet at least three times a • review Group level frameworks, policies, standards,
year. The ARCG Committee performs an annual self-evaluation and guidelines in sustainability matters;
and completed its 2023 self-evaluation on February 7, 2024.
• review the Company's sustainable development plan
The charter of the ARCG Committee is available from
and associated management systems and ensure the
ArcelorMittal upon request.
Group is well positioned to meet the evolving
Succession management expectations of stakeholders, including investors,
Succession management at ArcelorMittal is a systematic, customers, regulators, employees, and communities;
structured process for identifying and preparing employees with • review the effectiveness of the process for assessing
potential to fill key organizational positions, should the position and managing catastrophic risks;
become vacant. This process applies to all ArcelorMittal key
• coordinate the SC’s risk management work with the
positions up to and including the Executive Office. Succession
Audit and Risk Committee, in relation to reporting to
management aims to ensure the continued effective
the Board;
performance of the organization by providing for the availability
of experienced and capable employees who are prepared to • review the findings of important climate action report
assume these roles as they become available. For each and the management response;
position, candidates are identified based on performance, • support and provide guidance to management in
potential and an assessment of leadership capabilities and their developing and updating policies and procedures
“years to readiness”. Development needs linked to the relating to employee health & safety, environment,
succession plans are discussed, after which “Personal climate change and community relations;
Development Plans” are put in place, to accelerate development
and prepare candidates. Regular reviews of succession plans • monitor any current, pending or threatened legal
are conducted at different levels of the organization to ensure actions with respect to safety, climate change,
that they are accurate and up to date, leading to at least once a environment, and community relations;
year formal review by the Executive Office, of all key positions. • review and recommend to the Board of Directors on
Succession management is a necessary process to reduce risk the adequacy of the reporting on sustainability
of vacant positions or skill gap transitions, create a pipeline of opportunities, risks and issues in the annual report,
future leaders, ensure smooth business continuity and improve Sustainability Report, and other relevant public
employee motivation and engagement. This process has been documents;
in place for several years and reinforced, widened and made
• make recommendations to the Board of Directors with
more systematic in all regions of the organization. The
respect to trends in results and programs in all covered
responsibility to review and approve succession plans and
areas;
contingency plans at the highest level rests with the Board’s
ARCG Committee. • ensure that the SC Chair (or in their absence, an
alternative member) of the SC attends the Company’s
Sustainability Committee Annual General Meeting to answer questions
concerning sustainability and their development and/or
3 members implementation;
6 meetings
(67% • oversee any investigation and/or undertake any
(2023)
independent) thorough analysis which is within its scope.
The three members of the SC are Mrs. Clarissa Lins, Mr. Tye
Burt and Mr. Michel Wurth. Mrs. Lins and Mr. Burt are
In 2023, 6 meetings of Sustainability Committee were held, with
independent in accordance with the Company’s corporate
an attendance rate of 100%.
governance guidelines, the NYSE standards and the 10
The Sustainability Committee ("SC") is comprised of three Principles of Corporate Governance of the Luxembourg Stock
members, of whom two are independent. The SC makes Exchange. The Chairman of the SC is Mrs. Lins.
decisions by simple majority with no member having a casting
The members have relevant expertise or experience relating to
vote.
the objective of the SC. The responsible senior managers
pertaining to their respective areas of responsibility - health and
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safety, environment, climate change, for community relations - In addition to the Code of Business Conduct, ArcelorMittal has
are permanent invitees to the meetings of the SC. The developed a Human Rights Policy and a number of other
Chairman of the SC makes a verbal report of the SC’s decisions compliance policies in more specific areas, such as antitrust,
and findings to the Board of Directors after each SC meeting. anti-corruption, economic sanctions, insider dealing and data
protection. In all these areas, specifically targeted groups of
Other corporate governance practices employees are required to undergo specialized compliance
ArcelorMittal is committed to adhering to best practices in terms training. Furthermore, ArcelorMittal’s compliance program also
of corporate governance in its dealings with shareholders and includes a quarterly compliance certification process covering all
aims to ensure good corporate governance by applying rules on business segments and entailing reporting to the Audit & Risk
transparency, quality of reporting and the balance of powers. Committee.
ArcelorMittal continually monitors U.S., EU and Luxembourg
legal requirements and best practices in order to make ArcelorMittal intends to disclose any amendment to or waiver
adjustments to its corporate governance controls and from the Code of Business Conduct applicable to any of
procedures when necessary, as evidenced by the policies ArcelorMittal’s directors, its CEO, CFO or any other person who
adopted by the Board of Directors in 2012. is an Executive Officer of ArcelorMittal on ArcelorMittal’s website
at www.arcelormittal.com.
ArcelorMittal complies with the 10 Principles of Corporate
Governance of the Luxembourg Stock Exchange in all respects. Process for Handling Complaints on Accounting Matters
As part of the procedures of the Board of Directors for handling
Ethics and conflicts of interest complaints or concerns about accounting, internal controls and
Ethics and conflicts of interest are governed by ArcelorMittal’s auditing issues, ArcelorMittal’s Anti-Fraud Policy and Code of
Code of Business Conduct, which establishes the standards for Business Conduct encourage all employees to bring such
ethical behavior that are to be followed by all employees and issues to the Audit & Risk Committee’s attention on a
directors of ArcelorMittal in the exercise of their duties, including confidential basis. In accordance with ArcelorMittal’s Anti-Fraud
the Company's CEO and CFO. Each employee of ArcelorMittal and Whistleblower Policy, concerns with regard to possible fraud
is required to sign and acknowledge the Code of Conduct upon or irregularities in accounting, auditing or banking matters or
joining the Company. This also applies to the members of the bribery within ArcelorMittal or any of its subsidiaries or other
Board of Directors of ArcelorMittal, who signed the Company’s controlled entities may also be communicated through the “—
Appointment Letter in which they acknowledged their duties and Corporate Governance—Whistleblower” section of the
obligations. Any new member of the Board of Directors must ArcelorMittal website at www.arcelormittal.com, where
sign and acknowledge the Code of Conduct upon appointment. ArcelorMittal’s Anti-Fraud Policy and Code of Business Conduct
are also available in each of the main working languages used
Employees must always act in the best interests of ArcelorMittal
within the Group. In recent years, ArcelorMittal has implemented
and must avoid any situation in which their personal interests
local whistleblowing facilities, as needed.
conflict, or could conflict, with their obligations to ArcelorMittal.
Employees are prohibited from acquiring any financial or other Global Assurance
interest in any business or participating in any activity that could ArcelorMittal has a Global Assurance function that, through its
deprive ArcelorMittal of the time or the attention needed to Head of Global Assurance, reports to the Audit & Risk
devote to the performance of their duties. Any behavior that Committee. The function is staffed by full-time professional staff
deviates from the Code of Business Conduct is to be reported to located within each of the principal operating subsidiaries and at
the employee’s supervisor, a member of the management, the the corporate level. Recommendations and matters relating to
head of the legal department or the head of the Global internal control and processes are made by the Global
Assurance department. Assurance function and their implementation is regularly
reviewed by the Audit & Risk Committee.
Code of Business Conduct
Conduct training is offered throughout ArcelorMittal on a regular Independent auditors
basis in the form of face-to-face trainings, webinars and online The appointment and determination of fees of the independent
trainings. Employees are periodically trained about the Code of auditors is the direct responsibility of the Audit & Risk
Business Conduct in each location where ArcelorMittal has Committee. The Audit & Risk Committee is further responsible
operations. The Code of Business Conduct is available in the for obtaining, at least once each year, a written statement from
“Corporate Governance-Our Policies-Code of Business the independent auditors that their independence has not been
Conduct” section of ArcelorMittal’s website at impaired. The Audit & Risk Committee has also obtained a
www.arcelormittal.com and has been disseminated through confirmation from ArcelorMittal’s principal independent auditors
Company-wide communications. to the effect that none of its former employees are in a position
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within ArcelorMittal that may impair the principal auditors’ SHAREHOLDERS AND MARKETS
independence.
Major shareholders
Measures to prevent insider dealing and market manipulation The following table sets out information as of December 31,
The Board of Directors of ArcelorMittal has adopted Insider 2023 with respect to the beneficial ownership of ArcelorMittal
Dealing Regulations (“IDR”), which are updated when necessary ordinary shares by each person who is known to be the
(most recently in January 2019) and in relation to which training beneficial owner of more than 5% of the shares and all directors
is conducted throughout the Group. The IDR’s most recent and senior management as a group.
version has been updated in light of the new Market Abuse
Regulation and is available on ArcelorMittal’s website,
www.arcelormittal.com. ArcelorMittal Ordinary Shares
Number %
The IDR apply to the worldwide operations of ArcelorMittal. The
Significant Shareholder1 340,014,215 39.87 %
compliance and data protection officer of ArcelorMittal is also
Treasury Shares2 33,538,016 3.93 %
the IDR compliance officer and answers questions that
members of senior management, the Board of Directors, or Other Public Shareholders 479,257,541 56.20 %
employees may have about the IDR’s interpretation. The IDR Total 852,809,772 100.00 %
compliance officer maintains a list of insiders as required by Of which: BlackRock inc.5 48,794,511 5.72 %
Regulation No 596/2014 of the European Parliament and the Of which: Directors and Senior
Council dated 16 April 2014 on market abuse or “MAR” and the Management3 430,925 0.05 %
Commission Implementing Regulation 2016/347 of 10 March Significant Shareholder voting rights
(outstanding shares) 41.50 %
2016 laying down technical standards with regard to the precise
format of insider lists and for updating insider lists in accordance 1 For purposes of this table, ordinary shares owned directly by Mr. Lakshmi N.
with MAR. The IDR compliance officer may assist senior Mittal and his wife, Mrs. Usha Mittal, are aggregated with those ordinary
executives and directors with the filing of notices required by shares beneficially owned by the Significant Shareholder. At December 31,
2023, Mr. Lakshmi Mittal and his wife, Mrs. Usha Mittal, had direct ownership
Luxembourg law to be filed with the Luxembourg financial of ArcelorMittal ordinary shares and beneficial ownership (within the meaning
regulator, the CSSF (Commission de Surveillance du Secteur set forth in Rule 13d-3 of the Exchange Act), through the Significant
Financier). Furthermore, the IDR compliance officer has the Shareholder, of the outstanding equity of two holding companies that own
ArcelorMittal ordinary shares—Nuavam Investments S.à. r.l. (“Nuavam”) and
power to conduct investigations in connection with the
Lumen Investments S.à r.l. (“Lumen”). Nuavam, a limited liability company
application and enforcement of the IDR, in which any employee organized under the laws of Luxembourg, was the owner of 63,658,348
or member of senior management or of the Board of Directors is ArcelorMittal ordinary shares. Lumen, a limited liability company organized
required to cooperate. under the laws of Luxembourg, was the owner of 275,840,595 ArcelorMittal
ordinary shares. Mr. Lakshmi N. Mittal was the direct owner of 489,772
ArcelorMittal ordinary shares. Mrs. Mittal was the direct owner of 25,500
Selected new employees of ArcelorMittal are required to ArcelorMittal ordinary shares. Mr. Lakshmi N. Mittal, Mrs. Mittal and the
participate in a training course about the IDR upon joining Significant Shareholder shared beneficial ownership of 100% of the
ArcelorMittal and every three years thereafter. The individuals outstanding equity of each of Nuavam and Lumen (within the meaning set
forth in Rule 13d-3 of the Exchange Act). Accordingly, Mr. Lakshmi N. Mittal
who must participate in the IDR training include the members of
was the beneficial owner of 339,988,715 ArcelorMittal ordinary shares, Mrs.
senior management, employees who work in finance, legal, Mittal was the beneficial owner of 339,524,443 ordinary shares, and the
sales, mergers and acquisitions and other areas that the Significant Shareholder (when aggregated with ordinary shares of
Company may determine from time to time. In addition, ArcelorMittal held directly by Mr. and Mrs. Mittal) was the beneficial owner of
340,014,215 ordinary shares. As of December 31, 2023 and 2022, the
ArcelorMittal’s Code of Business Conduct contains a section on Significant Shareholder (together with Mr. Lakshmi N. Mittal and Mrs. Mittal)
“Trading in the Securities of the Company” that emphasizes the held 39.87% and 37.65% of the Company’s ordinary shares respectively.
prohibition to trade on the basis of inside information. An online 2 Represents ArcelorMittal ordinary shares repurchased pursuant to share
repurchase programs, fractional shares returned in various transactions, and
interactive training tool based on the IDR is currently deployed
the use of treasury shares in various transactions.
across the group through ArcelorMittal’s intranet, with the aim to 3 Includes shares beneficially owned by directors and members of senior
enhance the staff’s awareness of the risks of sanctions management listed in section "Management and employees—Directors and
applicable to insider dealing. The importance of the IDR is again senior managers" of this annual report; excludes shares beneficially owned
by Mr. Lakshmi N. Mittal. Note that ordinary shares included in this item are
reiterated in the Group's internal Group Policies and Procedures included in “Other Public Shareholders” above.
Manual. 4 Note that ordinary shares included in this item are included in “Other Public
Shareholders” above.
5 On October 31, 2023, BlackRock, Inc. provided notifications to the Company
stating that it beneficially owned 5.72% of ArcelorMittal’s issued shares as of
October 30, 2023. The number of shares shown in this table is based on this
notification.

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Aditya Mittal is the direct owner of 298,781 ArcelorMittal ordinary On March 18, 2022, BlackRock, Inc. provided a notification to
shares, representing less than 0.1% of the ArcelorMittal ordinary the Company stating that it beneficially owned less than 5% of
shares outstanding. Aditya Mittal holds a total of 276,045 PSUs ArcelorMittal’s issued shares as of March 15, 2022.
of which 71,050 may vest in 2024, 56,977 may vest in 2025,
73,902 may vest in 2026 and 74,116 in 2027. As the vesting of On May 24, 2022, BlackRock, Inc. provided a notification to the
PSUs is dependent on the Company's performance criteria not Company stating that it beneficially owned 5.27% of
fully within the control of the PSU holder, Aditya Mittal does not ArcelorMittal’s issued shares as of May 18, 2022.
beneficially own ArcelorMittal ordinary shares by virtue of his
On July 1, 2022, BlackRock, Inc. provided a notification to the
ownership of the PSUs. Aditya Mittal is the son of Mr. Lakshmi
Company stating that it beneficially owned less than 5% of
N. Mittal and Mrs. Mittal and is CEO and non-independent
ArcelorMittal’s issued shares as of June 30, 2022.
director of ArcelorMittal. Vanisha Mittal Bhatia is the direct owner
of 8,500 ArcelorMittal ordinary shares, representing less than On August 9, 2022, BlackRock, Inc. filed a Schedule 13G/A with
0.1% of the ArcelorMittal ordinary shares outstanding. Vanisha the U.S. Securities and Exchange Commission stating that it
Mittal Bhatia is the daughter of Mr. Lakshmi N. Mittal and Mrs. beneficially owned 43,446,535 shares or 4.9% of ArcelorMittal’s
Mittal and a member of the Company’s Board of Directors. issued shares as of July 31, 2022.

The ArcelorMittal ordinary shares may be held in registered form On April 25, 2023, BlackRock, Inc. provided a notification to the
on the Company’s register only. Registered shares are fully Company stating that it beneficially owned 5% of ArcelorMittal’s
fungible and may consist of: issued shares as of April 21, 2023.

a. ArcelorMittal Registry Shares, which are registered On August 25, 2023, BlackRock, Inc. provided a notification to
directly on ArcelorMittal’s Luxembourg shareholder the Company stating that it beneficially owned 5.68% of
register, ArcelorMittal’s issued shares as of August 23, 2023.

b. shares traded on Euronext Amsterdam, Euronext Paris, On September 18, 2023, BlackRock, Inc. provided notifications
the regulated market of the Luxembourg Stock to the Company stating that it beneficially owned 5.82% of
Exchange and the Spanish Stock Exchanges, which ArcelorMittal’s issued shares as of September 18, 2023.
are held in Euroclear, or
On September 19, 2023, BlackRock, Inc. provided notifications
c. shares traded on the NYSE, the ("New York Registry to the Company stating that it beneficially owned 5.83% of
Shares"), which are registered (including in the name ArcelorMittal’s issued shares as of September 19, 2023.
of the nominee of DTC) in a New York Share Register
kept on behalf of ArcelorMittal by Citibank N.A., its New On October 31, 2023, BlackRock, Inc. provided notifications to
York transfer agent. the Company stating that it beneficially owned 5.72% of
ArcelorMittal’s issued shares as of October 30, 2023.
On February 5, 2021, BlackRock, Inc. filed a Schedule 13G with
the SEC stating that it beneficially owned 57,171,259 shares or On February 1, 2024, BlackRock, Inc. filed a Schedule 13G/A
5.2% of ArcelorMittal’s issued shares as of December 31, 2020. with the U.S. Securities and Exchange Commission stating that
it beneficially owned 47,017,241 shares or 5.5% of
On March 10, 2021, BlackRock, Inc. filed a Schedule 13G/A with ArcelorMittal’s issued shares as of December 31, 2023.
the U.S. Securities and Exchange Commission stating that it
beneficially owned 51,468,777 shares or 4.7% of ArcelorMittal’s There were notifications from Société Générale SA on June 22,
issued shares as of February 28, 2021. on November 12, 19 and 24, on December 18 and 30, 2020 and
on January 4, 6 and 25, 2021 with a closing percentage on
On January 19, 2022, BlackRock, Inc. provided a notification to December 31, 2020 of 4.75% subsequently increasing to 5.18%
the Company stating that it beneficially owned 49,166,064 on January 4, 2021 and decreasing to 4.79% on January 21,
shares or 5.24% of ArcelorMittal’s issued shares as of January 2021.
18, 2022.
There were notifications from Société Générale SA on January
On February 4, 2022, BlackRock, Inc. filed a Schedule 13G/A 4, 6 and 25, 2021, on March 8, 12, 25 and 31, 2021, on May 5
with the U.S. Securities and Exchange Commission stating that and 19, 2021, on June 7, 2021, on August 6 and 16, 2021, on
it beneficially owned 52,460,418 shares or 5.3% of September 6, 2021, on October 29, 2021, on November 10,
ArcelorMittal’s issued shares as of December 31, 2021. 2021 and on December 1, 6 and 29 with a closing percentage
on December 31, 2021 of 5.04%.

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On January 26, 2022, there was a notification from Société special voting rights. For more information relating to
Générale SA stating that it beneficially owned 44,777,728 ArcelorMittal shares, see “Additional information—Memorandum
shares or 4.88% of ArcelorMittal’s issued shares as of January and Articles of Association—Voting and information rights”.
21, 2022.

These notifications are available in the Luxembourg Stock Management share ownership
Exchange’s OAM electronic database on www.bourse.lu and on As of December 31, 2023, the aggregate beneficial share
the Company’s website corporate.arcelormittal.com under ownership of ArcelorMittal directors and senior management (19
“Investors - Corporate Governance - Shareholding structure”. individuals) totaled 430,925 ArcelorMittal shares (excluding
The notifications were published in reference to the Luxembourg shares beneficially owned by the Significant Shareholder, Mr.
law and the Grand Ducal regulation of January 11, 2008, on Lakshmi N. Mittal) representing 0.05% of the total issued share
transparency requirements for issuers of securities capital of ArcelorMittal. Other than Mr. Lakshmi N. Mittal, each
("Transparency Law") in view of a shareholding notification director and member of senior management beneficially owns
going above or below the 5% voting rights threshold. less than 1% of ArcelorMittal’s shares. See "—Major
shareholders” for the beneficial share ownership of the
Under Luxembourg law, the ownership of registered shares is Significant Shareholder, Mr. Aditya Mittal and Ms. Vanisha Mittal
evidenced by the inscription of the name of the shareholder, the Bhatia.
number of shares held by such shareholder and the amount On April 27, 2015, ArcelorMittal adopted share ownership
paid up on each share in the shareholder register of guidelines for its CEO. The share ownership policy aims to
ArcelorMittal. demonstrate to ArcelorMittal’ shareholders, the investing public
and the Company’s employees, the commitment of the CEO to
At December 31, 2023, 2,479 shareholders other than the
the Company and directly aligns his interests with those of the
Significant Shareholder, holding an aggregate of 13,774,020
Company’s shareholders. Accordingly, the CEO should, within
ArcelorMittal ordinary shares, were registered in ArcelorMittal’s
five years of the end of the current calendar year, own shares of
shareholder register, representing approximately 1.62% of the
the Company’s common shares at least equal to three times his
ordinary shares issued (including treasury shares).
annual salary and hold the purchased shares for so long as he
At December 31, 2023, there were 153 registered shareholders serves the Company.
holding an aggregate of 66,396,511 New York Registry Shares,
In accordance with the Luxembourg Stock Exchange’s 10
representing approximately 7.79% of the ordinary shares issued
Principles of Corporate Governance, independent non-executive
(including treasury shares). ArcelorMittal’s knowledge of the
members of ArcelorMittal's Board of Directors do not receive
number of New York Registry Shares held by U.S. holders is
share options, RSUs or PSUs, and the policy of the Company is
based solely on the records of its New York transfer agent
not to grant any share-based remuneration to members of the
regarding registered ArcelorMittal ordinary shares.
Board of Directors who are not executives of the Company.
At December 31, 2023, 443,779,374 ArcelorMittal ordinary
See “Management and employees—Compensation” for a
shares were held through the Euroclear/Iberclear clearing
description of options, RSUs and PSUs held by members of
system in The Netherlands, France, Luxembourg and Spain,
ArcelorMittal’s senior management, including the Executive
representing approximately 52.04% of the ordinary shares
Chairman and CEO.
issued (including treasury shares).

Voting rights
Each share entitles the holder to one vote at the general
meeting of shareholders, and no shareholder benefits from

The following tables summarize outstanding PSUs and RSUs granted to the members of the Executive Office and Executive Officers of
ArcelorMittal for the last five years.

PSUs granted in 2023 PSUs granted in 2022 PSUs granted in 2021 PSUs granted in 2020
Executive Office 141,973 141,564 109,143 148,422
Term (in years) 3 3 3 3

Vesting date1 January 1, 2027 January 1, 2026 January 1, 2025 January 1, 2024

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1 See “Management and employees—Compensation—Remuneration—Long-term incentives plans”, for vesting conditions.

RSUs granted in PSUs granted in RSUs granted in PSUs granted in RSUs granted in PSUs granted
December 2023 December 2023 December 2022 December 2022 December 2021 in 2021

CFO and Other Executive Officers 54,800 233,100 41,500 113,900 32,400 89,200

Term (in years) 3 3 3 3 3 3

December 8, December 13, December 16, January 1,

Vesting date1 2026 January 1, 2027 2025 January 1, 2026 2024 2025

1 See note 8.3 to the consolidated financial statements, for vesting conditions.

See note 8.3 of the consolidated financial statements for a

description of ArcelorMittal’s equity-settled share-based Agreements with Aperam SA post-Stainless Steel Spin-Off
payments to certain employees, including stock options, RSUs In connection with the spin-off of its stainless steel division into a
and PSUs. separately focused company, Aperam SA (“Aperam”), which was
completed on January 25, 2011, ArcelorMittal entered into
Related party transactions several agreements with Aperam and/ or certain Aperam
ArcelorMittal engages in certain commercial and financial subsidiaries which are still in force: a purchasing services
transactions with related parties, including associates and joint agreement for negotiation services from ArcelorMittal
ventures of ArcelorMittal. Please refer to note 12 to the Purchasing (the “Purchasing Services Agreement”) as well as
consolidated financial statements. Further information related to certain commitments regarding cost-sharing in Brazil and certain
required disclosure of related party transactions under the other ancillary arrangements governing the relationship between
Shareholders’ Rights Law of August 1, 2019 implementing the Aperam and ArcelorMittal following the spin-off, as well as
European Union's Shareholders' Rights Directive in Luxembourg certain agreements relating to financing.
(the "Shareholders' Rights Law") is included in “Memorandum
and Articles of Association—Voting and information rights”. The parties agreed to renew a limited number of services where
expertise and bargaining power created value for each
Shareholder’s Agreement party. ArcelorMittal will continue to provide in 2024 (similar to
Mr. Lakshmi Mittal and ArcelorMittal are parties to a shareholder 2023) certain services relating to areas including environmental
and registration rights agreement (the “Shareholder’s and technical support.
Agreement”) dated August 13, 1997. Pursuant to the
Shareholder’s Agreement and subject to the terms and In the area of research and development at the time of the spin-
conditions thereof, ArcelorMittal shall, upon the request of off, Aperam entered into a framework agreement with
certain holders of restricted ArcelorMittal shares, use its ArcelorMittal in 2011, and as amended in 2015 to establish a
reasonable efforts to register under the Securities Act of 1933, structure for future cooperation in relation to certain ongoing or
as amended, the sale of ArcelorMittal shares intended to be sold new research and development programs. Currently, few but
by those holders. By its terms, the Shareholder’s Agreement valuable research and development supports are implemented
may not be amended, other than for manifest error, except by through this agreement. New exchanges about breakthrough
approval of a majority of ArcelorMittal’s shareholders (other than technologies or possible technical developments interesting
the Significant Shareholder and certain permitted transferees) at both companies were launched in 2021, 2022 and 2023 and are
a general shareholders’ meeting. still ongoing.

Memorandum of Understanding In Europe, Aperam purchased most of its electricity and natural
The Memorandum of Understanding entered into in connection gas through energy supply contracts put in place for the period
with the Mittal Steel acquisition of Arcelor, certain provisions of 2014-2020 through ArcelorMittal Energy SCA. Electricity and
which expired in August 2009 and August 2011, is described natural gas contracts were renewed in 2022 and for 2023 under
under “Additional information—Material contracts— similar terms and conditions. Electricity and natural gas supplies
Memorandum of Understanding”. will continue in 2024 under new terms and conditions as both
contracts are currently under negotiation. In addition,
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ArcelorMittal Europe and Aperam are both party to a supply (net of treasury shares) at the then-current level, pursuant to the
agreement under which the Company’s European operations Programs.
will receive significant volumes of calcined products (e.g. lime
and dolomitic lime) from a third party for use in steel production. On March 4, June 18, July 7, November 17 and December 29,
2021, ArcelorMittal announced the completion of five
Regarding procurement, Aperam still relies on ArcelorMittal for consecutive Programs under the authorization given by the
supplies and services in relation to the negotiation of certain annual general meetings of shareholders held on June 13, 2020
contracts with global or large regional suppliers. The Purchasing and June 8, 2021 (see "—Purchases of equity securities by the
Services Agreement entered into for an initial term of two years issuer and affiliated purchasers"). To maintain Significant
until January 24, 2013 has been renewed and remains in force Shareholder's current level of voting rights as per the Share
in relation to the following key categories: operating materials Repurchase Agreement, in the context of the first, second, third,
(only hot strip mill), refractory materials, spare parts, sea freight, fourth and fifth Programs, the Company repurchased, 9.9
industrial products and support services (excluding industrial million, 6.5 million, 8.9 million, 24.5 million and 12.4 million
services). The Purchasing Services Agreement also permits shares, respectively, from the Significant Shareholder for $236
Aperam to avail itself of the services and expertise of million, $207 million, $273 million, $799 million and $363 million,
ArcelorMittal for certain capital expenditures. respectively.

Another supply agreement entered into between Aperam and On February 11, 2022, ArcelorMittal announced a new $1 billion
ArcelorMittal Sourcing is effective since January 2020 for the share buyback program. To maintain Significant Shareholder's
sale of electrodes. Specific IT service agreements have been current level of voting rights as per the Share Repurchase
put in place with Aperam, one for Asset Reliability Maintenance Agreement, the Company repurchased 525,177 shares from the
Program ("ARMP") in its Brazilian entities, and two others for the Significant Shareholder for $16.2 million. On February 25, 2022,
use in Europe of ARMP and for the use of the global wide area the Company announced the decision of the Significant
network (WAN). Shareholder not to further participate to such program.
Accordingly, the Share Repurchase Agreement was terminated
Purchasing activities will continue to be provided to Aperam with respect to this program.
pursuant to existing contracts with ArcelorMittal entities that it
has specifically elected to assume. In addition, since 2011, a Markets
services agreement has been concluded between ArcelorMittal ArcelorMittal shares are listed and traded (through a single
Shared Service Center Europe Sp z.o.o. Sp.k. and Aperam for order book) on the Euronext European markets (Paris and
accounting services. Amsterdam) (symbol “MT”), are admitted to trading on the
Luxembourg Stock Exchange’s regulated market and listed on
In connection with the spin-off, management also renegotiated the Official List of the Luxembourg Stock Exchange (symbol
an existing Brazilian cost-sharing agreement between “MT”) and are listed and traded on the Spanish Stock
ArcelorMittal Brasil and Aperam Inox América do Sul S.A., Exchanges (symbol “MTS”). In the United States, ArcelorMittal
Aperam Inox Serviços Brasil Ltda., Aperam Inox Tubos Brasil shares are listed and traded on the NYSE (symbol “MT”).
Ltda. and Aperam Bioenergia Ltda. pursuant to which,
ArcelorMittal Brasil continued to perform purchasing for the Paying agents
benefit of these Aperam’s Brazilian subsidiaries, with costs The paying agent for shareholders who hold shares listed on the
being shared on the basis of cost allocation parameters agreed NYSE is Citibank and the paying agent for shareholders who
between the parties on a yearly basis. hold shares listed on Euronext Amsterdam, Euronext Paris, and
Luxembourg Stock Exchange is ABN AMRO since March 29,
Share Repurchase Agreement 2021, date as from which it replaced BNP Paribas Securities
The Significant Shareholder has entered into a share Services.
repurchase agreement with ArcelorMittal on February 12, 2021
(as amended from time to time), (the "Share Repurchase New York Registry Shares
Agreement"), to sell each trading day on which ArcelorMittal has The Company does not have any American Depositary
purchased shares under its 2021 share buyback programs (the Receipts. As described under “Additional information—
"Programs") an equivalent number of shares, at the proportion Memorandum and Articles of Association—Form and transfer of
of the then Significant Shareholder's stake in ArcelorMittal of shares”, the Company maintains a New York share register with
issued and outstanding shares of ArcelorMittal, at the same Citibank, N.A. for its shares that trade on the NYSE. As of
price as the shares repurchased on the market. The effect of the December 31, 2023, 66,396,511 shares (or approximately
Share Repurchase Agreement was to maintain the Significant 7.79% of ArcelorMittal’s total issued shares) were ArcelorMittal
Shareholder's voting rights in ArcelorMittal's issued share capital New York Registry Shares. Holders of ArcelorMittal New York

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Registry Shares do not pay fees to Citibank as a general matter, Following the achievement of the Group's net debt target, in
but do incur costs of up to $5 per 100 shares for transactions February 2021, the Board approved a new capital return policy.
that require canceling or issuing New York Registry Shares, According to this policy, the Board recommended a $0.30/share
such as cross-border trades where New York Registry Shares base dividend be paid in June 2021, which was approved on
are cancelled in exchange for shares held in ArcelorMittal’s June 8, 2021 at the annual general meeting of shareholders.
European register, or vice-versa. Subject to certain conditions, The dividend amounted to $325 million ($312 million net of
Citibank reimburses the Company on an annual basis for dividends paid to subsidiaries holding treasury shares) and was
expenses incurred by the Company in relation to the ongoing paid on June 15, 2021.
maintenance of the New York share facility (e.g., investor
relations expenses, NYSE listing fees, etc.). In 2023, Citibank In February 2022, the Board of Directors recommended an
paid the Company $1,155,394.53 in respect of reimbursements increase of the base annual dividend to $0.38/share, from
of expenses incurred by the Company in 2023. $0.30/share, to be paid in June 2022, which was approved on
May 4, 2022 at the annual general meeting of shareholders. The
Dividend distributions dividend amounted to $332 million and was paid on June 10,
Based on Luxembourg law and its Articles of Association, 2022.
ArcelorMittal allocates at least five percent of its net profits to
the creation of a reserve. This allocation ceases to be In February 2023, the Board of Directors recommended an
compulsory when the reserve reaches ten percent (10%) of its increase of the base annual dividend from $0.38/share to $0.44/
issued share capital, and becomes compulsory once again share, which was approved on May 2, 2023 at the annual
when the reserve falls below that percentage. Under general meeting of shareholders. The dividend amounted to
Luxembourg law, the amount of any dividends paid to $369 million and payment included two installments; the first
shareholders may not exceed the amount of the profits at the one was paid on June 15, 2023 and the second one was paid
end of the last financial year plus any profits carried forward and on December 7, 2023.
any amounts drawn from reserves that are available for that
In February 2024, the Board of Directors recommended an
purpose, less any losses carried forward and sums to be placed
increase of the base annual dividend to $0.50/share (from
in reserve in accordance with Luxembourg law or the Articles of
$0.44/share paid in 2023) to be paid in two equal installments in
Association. A company may not pay dividends to shareholders
June 2024 and December 2024, subject to the approval of
when, on the closing date of the last financial year, the net
shareholders at the annual general meeting of shareholders in
assets are, or following the payment of such dividend would
April 2024.
become, lower than the amount of the subscribed capital plus
the reserves that may not be distributed by law or by virtue of Purchases of equity securities by the issuer and affiliated
the articles of association. ArcelorMittal’s Articles of Association purchasers
provide that the portion of annual net profit that remains The annual general meeting of shareholders held on May 4,
unreserved is allocated as follows by the general meeting of 2022 (the “2022 AGM”) decided (a) to cancel with effect as of
shareholders upon the proposal of the Board of Directors: the date of the 2022 AGM the authorization granted to the Board
of Directors by the general meeting of shareholders held on
• a global amount is allocated to the Board of Directors
June 8, 2021 with respect to the share buy-back program (the
by way of directors’ fees (“tantièmes”). This amount
"Authorization"), and (b) to authorize, effective immediately after
may not be less than €1,000,000. In the event that the
the 2022 AGM, the Board of Directors, with the option to
profits are insufficient, the amount of €1,000,000 shall
delegate to the corporate bodies of the other companies in the
be imputed in whole or in part to charges. The
ArcelorMittal group in accordance with the Luxembourg law of
distribution of this amount among the members of the
August 10, 1915 on commercial companies, as amended (the
Board of Directors shall be effected in accordance with
“Law”), to acquire and sell shares in the Company in
the Board of Directors’ rules of procedure; and
accordance with the Law and any other applicable laws and
• the balance is distributed as dividends to the regulations, including but not limited to entering into off-market
shareholders or placed in the reserves or carried and over-the-counter transactions and to acquire shares in the
forward. Company through derivative financial instruments.
Interim dividends may be distributed under the conditions set On June 9, 2022, ArcelorMittal announced the completion of a
forth in Luxembourg law by decision of the Board of Directors. second $1 billion share buyback program announced on May 5,
2022, pursuant to an authorization by the 2022 AGM. At market
No interest is paid on dividends declared but not paid which are
close on June 8, 2022, ArcelorMittal had repurchased 33.3
held by the Company on behalf of shareholders.

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million shares for a total value of €943 million (equivalent to $1 that will be repurchased pursuant to this 2023 buyback program
billion) at an average price per share of €28.26 ($29.99). will depend on the level of post-dividend free cash flow
generated over the period, the continued authorization by
On March 31, 2023, ArcelorMittal announced the completion of shareholders, and market conditions. See “Introduction—History
another $1.4 billion share buyback program initially announced and development of the Company—Additional information”.
on July 29, 2022 ("2022 buyback program") pursuant to an
authorization given by the annual general meeting of As described in “Memorandum and Articles of Association”, the
shareholders on May 4, 2022. At market close on March 31, maximum number of shares that may be acquired does not in
2023, ArcelorMittal had repurchased 60.4 million shares for a any event exceed 10% of the Company’s issued share capital.
total value of €1.5 billion ($1.5 billion) at an average price per The maximum number of own shares that the Company may
share of €24.10 ($24.68). hold at any time directly or indirectly may not have the effect of
reducing its net assets (“actif net”) below the amount mentioned
On May 5, 2023, the Company announced a new share in paragraphs 1 and 2 of Article 461-272-1 of the Law.
buyback program of up to 85 million shares to be completed by
May 2025 (subject to market conditions) under the authorization
given by the annual general meeting of shareholders of May 2,
2023 ("2023 buyback program") The actual amount of shares

Maximum Number of
Total Number of Shares that may yet
Shares Purchased as be purchased under
Part of Publicly the Plans or Programs
Total Number of Average Price Announced Plan or (see above
Program1 2023 Shares Purchased Paid Per Share Program explanations)
2022 buyback program January 1 - January 31 — — — 19,104,941
2022 buyback program February 1 - February 28 3,233,074 $ 29.70 3,233,074 15,871,867
2022 buyback program March 1 - March 31 15,871,867 $ 28.89 15,871,867 —
None April 1 - April 30 — — — —
2023 buyback program May 1 - May 31 5,170,704 $ 26.25 5,170,704 79,829,296
2023 buyback program June 1 - June 30 517,205 $ 25.34 517,205 79,312,091
2023 buyback program July 1 - July 31 — — — 79,312,091
2023 buyback program August 1 - August 31 1,400,000 $ 27.10 1,400,000 77,912,091
2023 buyback program September 1 - September 30 — — — 77,912,091
2023 buyback program October 1 - October 31 — — — 77,912,091
2023 buyback program November 1 - November 30 15,381,386 $ 23.98 15,381,386 62,530,705
2023 buyback program December 1 - December 31 3,781,759 $ 25.59 3,781,759 58,748,946

1. Commencement of 2022 buyback program was announced on July 29, 2022 for an aggregate amount of $1.4 billion and the completion was announced on March 31,
2023. Commencement of 2023 buyback program was announced on May 5, 2023 for up to 85 million shares; the actual amount of shares to be repurchased will depend
on the level of post-dividend free cash flow generated over the period. See “Introduction—History and development of the Company—Additional information”. As of
December 31, 2023, the 2023 buyback program was not yet completed.

Share capital
The Company’s authorized share capital, including the issued
As of December 31, 2023, the Company’s issued share capital
share capital, was $395 million, represented by 1,111,418,599
amounted to $303 million, represented by 852,809,772 ordinary
ordinary shares without nominal value as of December 31,
shares without nominal value. The Company's issued share
2023. The Company's authorized share capital changed as
capital changed as described below in 2021, 2022 and 2023.
described below in 2021, 2022 and 2023.
Out of the total of 852,809,772 shares in issue, 33,538,016
On May 19, 2023, upon mandatory conversion of the remaining
shares were held in treasury by ArcelorMittal at December 31,
24,290,025 outstanding mandatorily convertible subordinated
2023, representing 3.93% of its issued share capital.
notes issued on May 18, 2020 and due May 18, 2023,

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ArcelorMittal delivered a total of 57,057,991 treasury shares (of Corporate purpose

which 9,396,120 to the Significant Shareholder). See note 11.2 Article 3 of the Articles of Association provides that the corporate
to the consolidated financial statements. purpose of ArcelorMittal is the manufacture, processing and
marketing of steel, steel products and all other metallurgical
In line with the authorization granted by the EGM of ArcelorMittal products, as well as all products and materials used in their
shareholders held on June 8, 2021 and May 4, 2022, the Board manufacture, their processing and their marketing, and all
of Directors has decided to keep the number of treasury shares industrial and commercial activities connected directly or
within appropriate levels by cancelling: indirectly with those objects, including mining and research
activities and the creation, acquisition, holding, exploitation and
(i) on August 4, 2021, 70 million treasury shares. As a result of
sale of patents, licenses, know-how and, more generally,
this cancellation, ArcelorMittal had 1,032,809,772 shares in
intellectual and industrial property rights.
issue (compared to 1,102,809,772 before the cancellation);
The Company may realize its corporate purpose either directly
(ii) on September 22, 2021, 50 million treasury shares. As a
or through the creation of companies, the acquisition, holding or
result of this cancellation, ArcelorMittal had 982,809,772 shares
acquisition of interests in any companies or partnerships,
in issue (compared to 1,032,809,772 before cancellation);
membership in any associations, consortia and joint ventures.
(iii) on January 14, 2022, 45 million treasury shares. As a result
In general, the Company’s corporate purpose comprises the
of this cancellation, ArcelorMittal had 937,809,772 shares in
participation, in any form whatsoever, in companies and
issue (compared to 982,809,772 before cancellation);
partnerships and the acquisition by purchase, subscription or in
(iv) on May 18, 2022, 60 million treasury shares. As a result of any other manner as well as the transfer by sale, exchange or in
this cancellation, ArcelorMittal had 877,809,772 shares in issue any other manner of shares, bonds, debt securities, warrants
(compared to 937,809,772 before cancellation); and and other securities and instruments of any kind.

(v) on April 28, 2023, 25 million treasury shares. As a result of It may grant assistance to any affiliated company and take any
such cancellation, ArcelorMittal has 852,809,772 shares in issue measure for the control and supervision of such companies.
(compared to 877,809,772 before the cancellation).
It may carry out any commercial, financial or industrial operation
The first two cancellations took into account the $2.2 billion or transaction that it considers to be directly or indirectly
share buyback program announced on July 29, 2021, which was necessary or useful in order to achieve or further its corporate
completed on November 16, 2021, whereas the third purpose.
cancellation took into account the $1 billion share buyback
Form and transfer of shares
program announced on November 17, 2021, which was
The shares of ArcelorMittal are issued in registered form only
completed on December 28, 2021. The fourth cancellation took
and are freely transferable. There are no restrictions on the
into account the $1 billion share buyback program announced
rights of Luxembourg or non-Luxembourg residents to own
on May 5, 2022, which was completed on June 8, 2022. The
ArcelorMittal shares.
fifth cancellation took into account the 60,431,380 share
buyback announced on July 29, 2022 which was completed on In accordance with Luxembourg law, the ownership of registered
March 31, 2023. shares is evidenced by the inscription of the name of the
shareholder and the number of shares held by such shareholder
Over the years, ArcelorMittal has issued equity-settled share-
in the shareholders’ register. Each transfer of shares is made by
based payments to certain employees, including stock options,
a written declaration of transfer recorded in the shareholders’
restricted share units and performance share units. See note 8.3
register of ArcelorMittal, dated and signed by the transferor and
to the consolidated financial statements.
the transferee or by their duly appointed agent. ArcelorMittal
ADDITIONAL INFORMATION may accept and enter into its shareholders’ register any transfer
based on an agreement between the transferor and the
Memorandum and Articles of Association transferee provided a true and complete copy of such
Below is a summary of ArcelorMittal’s Articles of Association. agreement is provided to ArcelorMittal.
The full text of the Company’s Articles of Association is also
available on www.arcelormittal.com under “Investors-Corporate
Governance-Current-Articles of Association”.

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The Articles of Association provide that shares may be held possible for shareholders to hold shares through a direct,
through a securities settlement (clearing) system or a nominative registration in the Company’s register of
professional depositary of securities. Shares held in this manner shareholders as is currently the case. As of December 31, 2023,
have the same rights and obligations as the registered shares. notice of the Effective Date has not been given.
Shares held through a securities settlement system or a
professional depositary of securities may be transferred in Issuance of shares
accordance with customary procedures for the transfer of The issuance of shares by ArcelorMittal requires either an
securities in book-entry form. amendment of the Articles of Association approved by an EGM
or a decision of the Board of Directors that is within the limits of
The ArcelorMittal ordinary shares may be held in registered form the authorized share capital set out in the Articles of Association.
on the Company’s register only. Registered shares are fully In the latter case, the Board of Directors may determine the
fungible and may consist of: conditions for the issuance of shares, including the
consideration (cash or in kind) payable for such shares.
a. ArcelorMittal Registry Shares, which are registered
directly on ArcelorMittal’s Luxembourg shareholders' The EGM may not validly deliberate unless at least half of the
register, share capital is present or represented upon the first call. If the
quorum is not met, the meeting may be reconvened as
b. shares traded on Euronext Amsterdam, Euronext Paris, described in “General meeting of shareholders” below. The
the regulated market of the Luxembourg Stock second meeting will be held regardless of the proportion of
Exchange and the Spanish Stock Exchanges, which share capital represented. At both meetings, resolutions, in
are held in Euroclear, or order to be adopted, must be carried by at least two-thirds of the
votes cast.
c. shares traded on the NYSE (the "New York Registry
Shares"), which are registered (including in the name Articles 5.1 and 5.2 of the Articles of Association of the
of the nominee of DTC) in a New York Share Register Company were amended to reflect the issued share capital
kept on behalf of ArcelorMittal by Citibank, N.A., its decrease described above in "Shareholders and markets–Share
New York transfer agent. capital" for the financial year ending on December 31, 2023.
Such amendments to the Articles of Association were filed with
ABN AMRO assists the Company with certain administrative
the Luxembourg Register of Commerce and Companies on May
tasks relating to the day-to-day administrative management of
11, 2023.
the shareholders' register. The Company maintains a New York
shareholders' register with Citibank, N.A. (located at 388 Preemptive rights
Greenwich Street, New York, New York 10013) for its New York Unless limited or canceled by the Board of Directors as
Registry Shares that trade on the NYSE with underlying described below or by an EGM, holders of ArcelorMittal shares
positions held in Euroclear. As of December 31, 2023, have a pro rata preemptive right to subscribe for newly issued
66,396,511 shares (or approximately 7.79% of ArcelorMittal's shares, except for shares issued for consideration other than
total issued shares) were New York Registry Shares. cash (i.e., in kind).

The law of April 6, 2013 concerning dematerialized securities The Articles of Association provide that preemptive rights may
allows Luxembourg issuers to opt for the full dematerialization of be limited or canceled by the Board of Directors in the event of
shares. The EGM of ArcelorMittal shareholders held on May 10, an increase in the Company’s issued share capital until the date
2017 authorized and empowered the Board of Directors to give being five years from the date of publication in the Luxembourg
effect to such dematerialization and to determine its effective legal gazette (Recueil électronique des sociétés et associations)
date, following which new shares in the Company may only be (“RESA”) of the relevant meeting minutes, which publication
issued in dematerialized form (the “Effective Date”). Notice of occurred on June 17, 2020 with respect to the minutes of the
the compulsory dematerialization will be given in accordance EGM held on June 13, 2020. This power of the Board of
with Article 6.9 (i) of the Articles of Association. As from the Directors may be renewed from time to time by an EGM for
Effective Date, shareholders would be required to hold their subsequent periods not to exceed five years each.
shares in a securities account at a bank or other financial
intermediary, which would in turn hold the shares via an account Repurchase of shares
with a securities depository such as Clearstream or Euroclear. ArcelorMittal is prohibited by Luxembourg law from subscribing
Dematerialized securities would be solely represented by for its own shares. ArcelorMittal may, however, repurchase its
account entries with the securities depositary and would own shares or have another person repurchase shares on its
therefore exist only in electronic form. It would then no longer be behalf, subject to certain conditions, including:

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• a prior authorization of the general meeting of Any acquisitions, disposals, exchanges, contributions or
shareholders setting out the terms and conditions of transfers of shares by the Company or other companies in the
the proposed repurchase, including the maximum ArcelorMittal group must be in accordance with Regulation (EU)
number of shares to be repurchased, the duration of No. 596/2014 of the European Parliament and of the Council of
the period for which the authorization is given (which April 16, 2014 on market abuse (the "MAR Regulation"),
may not exceed five years) and the minimum and Commission Delegated Regulation (EU) No. 2016/1052 of
maximum consideration per share; March 8, 2016 with regard to regulatory technical standards for
the conditions applicable to buy-back programs and stabilization
• the repurchase may not reduce the net assets of measures and Luxembourg law of December 23, 2016 on
ArcelorMittal on a non-consolidated basis to a level market abuse implementing the MAR Regulation.
below the aggregate of the issued share capital and
the reserves that ArcelorMittal must maintain pursuant Such transactions may be carried out at any time, including
to Luxembourg law or its Articles of Association; during a tender offer period, subject to applicable laws and
regulations including Section 10(b) and Section 9(a)(2) of the
• only fully paid-up shares may be repurchased. At Securities Exchange Act of 1934, as amended (the “Exchange
December 31, 2023, all of ArcelorMittal’s issued Act”), and Rule 10b-5 promulgated under the Exchange Act.
ordinary shares were fully paid-up; and
The Authorization is valid until the end of the annual general
• the acquisition offer is made on the same terms and meeting of shareholders to be held in 2024 (the "2024 AGM") or
conditions to all the shareholders who are in the same until the date of its renewal by a resolution of the general
position, it being noted however that listed companies meeting of shareholders if such renewal date is prior to the
may repurchase their own shares on the stock expiration of the 2024 AGM.
exchange without an acquisition offer having to be
made to the shareholders. The maximum number of shares that may be acquired under the
Authorization may not in any event exceed 10% of the
In addition, Luxembourg law allows the Board of Directors to Company’s issued share capital. The maximum number of own
approve the repurchase of ArcelorMittal shares without the prior shares that the Company may hold at any time directly or
approval of the general meeting of shareholders if necessary to indirectly may not have the effect of reducing its net assets
prevent serious and imminent harm to ArcelorMittal. In such a (“actif net”) below the amount mentioned in paragraphs 1 and 2
case, the next general meeting of shareholders must be of Article 461-2 of the Law. The purchase price per share to be
informed by the Board of Directors of the reasons for and the paid shall not exceed 110% of the average of the final listing
purpose of the acquisitions made, the number and nominal prices of the 30 trading days preceding the three trading days
values, or in the absence thereof, the accounting par value of prior to each date of repurchase, and shall not be less than one
the shares acquired, the proportion of the issued share capital euro cent. The final listing prices are those on the Euronext
that they represent, and the consideration paid for them. markets where the Company is listed or the Luxembourg Stock
Exchange, depending on the market on which the purchases
The annual general meeting of shareholders held on May 2,
are made. For off-market transactions, the maximum purchase
2023 (the “2023 AGM”) decided (a) to cancel with effect as of
price shall be 110% of the reference price on the Euronext
the date of the 2023 AGM the authorization granted to the Board
markets where the Company is listed. The reference price will
of Directors by the general meeting of shareholders held on May
be deemed to be the average of the final listing prices per share
4, 2022 with respect to the share buy-back program (the
on these markets during 30 consecutive days on which these
"Authorization"), and (b) to authorize, effective immediately after
markets are open for trading preceding the three trading days
the 2023 AGM, the Board of Directors, with the option to
prior to the date of purchase. For the avoidance of doubt, price
delegate to the corporate bodies of the other companies in the
restrictions set out in the immediately preceding paragraphs do
ArcelorMittal group in accordance with the Luxembourg law of
not apply to cash-settled derivative financial instruments entered
August 10, 1915 on commercial companies, as amended (the
into to mitigate volatility in the per share prices paid to acquire
“Law”), to acquire and sell shares in the Company in
shares in the Company. In the event of a share capital increase
accordance with the Law and any other applicable laws and
by incorporation of reserves or issue premiums and the free
regulations, including but not limited to entering into off-market
allotment of shares as well as in the event of the division or
and over-the-counter transactions and to acquire shares in the
regrouping of the shares, the purchase price indicated above
Company through derivative financial instruments as well as to
shall be adjusted by a multiplying coefficient equal to the ratio
enter into cash-settled derivative financial instruments to
between the number of shares comprising the issued share
mitigate the volatility in the share prices paid to acquire shares
capital prior to the transaction and such number following the
in the Company.
transaction. The total amount allocated for the Company’s share
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repurchase program may not in any event exceed the amount of Ordinary general meetings are not subject to any minimum
the Company’s then available equity. shareholder participation level. Extraordinary general meetings,
however, are subject to a minimum quorum of 50% of the share
Capital reduction capital. In the event the 50% quorum is not met upon the first
The Articles of Association provide that the issued share capital call, the meeting may be reconvened by way of convening
of ArcelorMittal may be reduced subject to the approval of at notice published in the same manner as the first notice, at least
least two-thirds of the votes cast at an extraordinary general 17 days before the meeting date. No quorum is required upon
meeting of shareholders where, at first call, at least 50% of the the second call.
issued share capital is required to be represented, with no
quorum being required at a reconvened meeting. Shareholders whose share ownership is directly registered in
the shareholders’ register of the Company must receive the
The extraordinary general meeting of shareholders held on May convening notice by regular mail, unless they have accepted to
2, 2023 decided to authorize the Board of Directors, for a period receive it through other means (i.e., electronically). In addition,
of three years (i) to cancel all the shares repurchased by the all materials relating to a general meeting of shareholders must
Company under its share buyback programs up to a maximum be made available on the website of ArcelorMittal from the first
of 88 million shares and to consequently reduce the issued date of publication of the convening notice.
share capital of the Company and the authorized share capital
of the Company by an amount corresponding to the product of The Shareholders’ Rights Law abolished the blocking period
the number of treasury shares cancelled multiplied by thirty-six and introduced the record date system into Luxembourg law. As
U.S. dollar cents (USD 0.36), being the par value of the shares set out in the Articles of Association, the record date applicable
in the Company - and (ii) to consequentially amend articles 5.1 to ArcelorMittal is the 14th day at midnight before the general
and 5.2 of the articles of association of the Company to reflect meeting date. Only the votes of shareholders who are
the above cancellations and reductions of the issued and shareholders of the Company on the record date will be taken
authorized share capital of the Company, (iii) to reduce or into account, regardless of whether they remain shareholders on
cancel the relevant reserves constituted under applicable law in the general meeting date. Shareholders who intend to
relation thereto and (iv) to instruct and delegate power to and participate in the general meeting must notify the Company at
authorize the Board of Directors or its delegate(s) to implement the latest on the date indicated in the convening notice of their
the cancellation of the number of treasury shares determined by intention to participate (by proxy or in person).
the Board of Directors and the corresponding reduction of share
capital and related matters in one or more installments as Ordinary general meetings of shareholders. At an ordinary
deemed fit by the Board of Directors, to cause the share capital general meeting of shareholders there is no quorum
reductions and cancellations of the treasury shares and the requirement and resolutions are adopted by a simple majority,
consequential amendment of the Articles to be recorded by way irrespective of the number of shares represented. Ordinary
of one or more notarial deeds, and generally to take any steps, general meetings deliberate on any matter that does not require
actions or formalities as appropriate or useful to implement this the convening of an extraordinary general meeting. The Articles
decision of the extraordinary general meeting. of Association provide that the annual general meeting of
shareholders is held each year within six months from the end of
Please refer to the section on “Shareholder and markets - Share the previous financial year at the Company’s registered office or
capital” for the details on the latest share capital reductions. at any other place in the Grand Duchy of Luxembourg as
determined by the Board of Directors and indicated in the
General meeting of shareholders convening notice.
The shareholders’ rights law of May 24, 2011, which transposes
into Luxembourg law Directive 2007/36/EC of the European Extraordinary general meetings of shareholders. An
Parliament and of the Council of July 11, 2007 (on the exercise extraordinary general meeting must be convened to deliberate
of certain rights of shareholders in listed companies) as on the following types of matters:
amended (the “Shareholders' Rights Law”) includes provisions • an increase or decrease of the authorized or issued
relating to general meetings of shareholders, as discussed share capital,
below. • a limitation or exclusion of existing shareholders’
preemptive rights,
General meetings of shareholders are convened by the
publication of a notice at least 30 days before the meeting date • the acquisition by any person of 25% or more of the
in a Luxembourg newspaper, via the online platform called issued share capital of ArcelorMittal,
Recueil électronique des sociétés et associations (“RESA”), and • approving a merger or similar transaction such as a
by way of press release sent to the major news agencies. spin-off, and

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• any transaction or matter requiring an amendment of resolutions to be submitted to the general meeting regarding
the Articles of Association. existing agenda items. The request must be made in writing and
The extraordinary general meeting must reach a quorum of sent either to the electronic address or to the Company’s postal
shares present or represented at the meeting of 50% of the address set out in the convening notice.
share capital in order to validly deliberate. If this quorum is not
The Shareholders’ Rights Law provides that a company’s
reached, the meeting may be reconvened and the second
articles of association may allow shareholders to ask questions
meeting will not be subject to any quorum requirement. In order
prior to the general meeting which will be answered by
to be adopted by the extraordinary general meeting (on the first
management during the general meeting’s questions and
or the second call), any resolution submitted must be approved
answers session prior to the vote on the agenda items. Although
by at least two-thirds of the votes cast except for certain limited
the Articles of Association do not specifically address this point,
matters where the Articles of Association require a higher
shareholders may ask questions in writing ahead of a general
majority (see “—Amendment of the Articles of Association”).
meeting, which are taken into account in preparing the general
Votes cast do not include votes attaching to shares with respect
meeting’s questions and answers session. With regard to the
to which the shareholder has not taken part in the vote, has
May 2, 2023 general meetings, shareholders could also send
abstained or has returned a blank or invalid vote.
questions to the Company in advance by writing to a dedicated
In addition, Luxembourg law requires the Board of Directors to e-mail address indicated in the convening notice. The Company
convene a general meeting of shareholders if shareholders on a best efforts basis provided responses to the questions
representing in the aggregate 10% of the issued share capital during the general meeting Q&A session.
so require in writing with an indication of the requested agenda.
Identification of shareholders
In this case, the general meeting of shareholders must be held
Pursuant to the Shareholders’ Rights Law, listed companies now
within one month of the request. If the requested general
have the ability to identify their shareholders and ultimately
meeting of shareholders is not so convened, the relevant
improve communication between them and their shareholders.
shareholder or group of shareholders may petition the
Intermediaries, including those in third countries, are required to
competent court in Luxembourg to have a court appointee
provide the Company with information to enable the
convene the general meeting.
identification of shareholders. Intermediaries in-scope of the
Shareholder participation at general meetings Shareholders' Rights Law are investment firms, credit
The Board of Directors may decide to arrange for shareholders institutions and central securities depositories which provide
to be able to participate in the general meeting by electronic share safekeeping or administration of securities accounts or
means by way, among others, of (i) real-time transmission to maintenance services to shareholders or other persons. Third
the public of the general meeting, (ii) two-way communication country in-scope intermediaries are those which provide these
enabling shareholders to address the general meeting from a services to shareholders or other intermediaries with respect to
remote location, or (iii) a mechanism allowing duly identified shares in the Company and are located outside of the European
shareholders to cast their votes before or during the general Union.
meeting without the need for them to appoint a proxyholder who
Voting and information rights
would be physically present at the meeting.
There are no restrictions on the rights of Luxembourg or non-
A shareholder may act at any general meeting of shareholders Luxembourg residents to vote ArcelorMittal shares. Each share
by appointing another person (who need not be a shareholder) entitles the shareholder to attend a general meeting of
as his or her attorney by means of a written proxy using the form shareholders in person or by proxy, to address the general
made available on the website of the Company. The completed meeting of shareholders and to vote. Each share entitles the
and signed proxy must be sent to the Company in accordance holder to one vote at the general meeting of shareholders.
with the instructions set out in the convening notice. There is no minimum shareholding (beyond owning a single
share or representing the owner of a single share) required to
The Board of Directors may also decide to allow shareholders to be able to attend or vote at a general meeting of shareholders.
vote by correspondence by means of a form providing for a
positive or negative vote or an abstention on each agenda item. The voting and information rights of ArcelorMittal’s shareholders
The conditions for voting by correspondence are set out in the have been further expanded since the entry into force of the
Articles of Association and in the convening notice. Shareholders’ Rights Law.

Shareholders representing in the aggregate 5% of the issued Election and removal of directors
share capital may also request that additional items be added to Members of the Board of Directors are elected by simple
the agenda of a general meeting and may draft alternative majority of the represented shareholders at an ordinary general

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meeting of shareholders. Directors are elected for a period the general meeting of shareholders for approval each time
ending on a date determined at the time of their appointment. there is a significant change thereto and at least every four
The directors of ArcelorMittal are elected for three-year terms in years. In addition, companies must prepare a remuneration
staggered intervals. Any director may be removed with or report for the annual general meeting on the remuneration and
without cause by a simple majority vote at any general meeting benefits granted to directors, and such remuneration report is
of shareholders. required to be submitted for an advisory vote at the general
meeting of shareholders each year.
(a) a director’s power to vote on a proposal, arrangement or
contract in which the director is materially interested; (c) borrowing powers exercisable by the directors and how such
If a Director has directly or indirectly a financial interest in a borrowing powers can be varied;
transaction that is submitted to the Board of Directors for Any transaction between ArcelorMittal or a subsidiary of
approval and this interest conflicts with that of ArcelorMittal ArcelorMittal and a Director (or an affiliate of a Director) must be
(other than transactions which are ordinary business operations conducted on arm’s length terms and, if material, must obtain
and are entered into under normal conditions), the Director must the approval of the Independent Directors.
advise the Board of Directors of the existence and nature of the
conflict and cause a record of his/her statement to be included (d) retirement or non-retirement of directors under an age limit
in the minutes of the meeting. In addition, the Director may not requirement
take part in the discussions on and may not vote on the relevant There is no retirement or non-retirement of directors under an
transaction and he or she shall not be counted for the purposes age limit requirement. However, on October 30, 2012, the Board
of whether the quorum is present, in which case the Board of of Directors adopted a policy that places limitations on the terms
Directors may validly deliberate if at least the majority of the of independent directors as well as the number of directorships
non-conflicted directors are present or represented. At the next Directors may hold in order to align the Company’s corporate
following general meeting of shareholders of ArcelorMittal, governance practices with best practices in this area. The policy
before any other resolution is put to a vote, a special report will provides that an independent director may not serve on the
be made by the Board of Directors to the shareholders’ meeting Board of Directors for more than 12 consecutive years, although
on any such transaction. the Board of Directors may, by way of exception to this rule,
make an affirmative determination, on a case-by-case basis,
If a material transaction with a related party involves a Director, that he or she may continue to serve beyond the 12 years rule if
that Director may not participate in the approval of such the Board of Directors considers it to be in the best interest of
transaction. the Company based on the contribution of the Director involved
and the balance between the knowledge, skills, experience and
(b) the directors’ power, in the absence of an independent need for renewal of the Board.
quorum, to vote compensation to themselves or any members of
their body; (e) number of shares, if any, required for director’s qualification.
The remuneration of the Directors is determined each year by Article 8.2 of the Articles of Association states that the members
the annual general meeting of shareholders subject to Article 17 of the Board of Directors do not have to be shareholders in the
of the Articles of Association. The annual shareholders meeting Company. However, the Board of Directors introduced on
of the Company decides on the directors’ remuneration. The October 30, 2012 (as amended on November 7, 2017) a policy
Executive Chairman is not remunerated for his membership on that requires members of the Board of Directors to hold 4,000
the Board of Directors. The remuneration of the Executive shares in the Company (6,000 for the Lead Independent
Chairman is determined by the Board’s ARCG Committee, Director). For more information, see “Management and
which consists solely of independent directors. For more employees—Corporate governance—Specific characteristics of
information, see “Management and employees— the director role”.
Compensation”.
ArcelorMittal’s Articles of Association provide that the Significant
Pursuant to the Shareholders’ Rights Law, the shareholders Shareholder is entitled to nominate a number of candidates for
must be informed in detail of the remuneration of the members election by the shareholders to the Board of Directors in
of the Company's Board of Directors and its CEO and the proportion to its shareholding. The Significant Shareholder has
company's remuneration policy. Companies must prepare a not exercised this right to date.
management remuneration policy describing all components,
criteria, methods and modalities applied to determine the fixed Amendment of the Articles of Association
and variable remuneration of such persons. Such remuneration Any amendments to the Articles of Association must be
policy must contribute to the Company' business strategy and approved by an extraordinary general meeting of shareholders
long-term interests. It must be resubmitted to an advisory vote at
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held in the presence of a Luxembourg notary, followed by the Merger and division
publications required by Luxembourg law. A merger whereby the Luxembourg company being acquired
transfers to an existing or newly incorporated Luxembourg
In order to be adopted, amendments of the Articles of company all of its assets and liabilities in exchange for the
Association relating to the size and the requisite minimum issuance to the shareholders of the company being acquired of
number of independent and non-executive directors of the shares in the acquiring company, and a division whereby a
Board of Directors, the composition of the Audit & Risk company (the company being divided) transfers all its assets
Committee, and the nomination rights to the Board of Directors and liabilities to two or more existing or newly incorporated
of the Significant Shareholder require a majority of votes companies in exchange for the issuance of shares in the
representing two-thirds of the voting rights attached to the beneficiary companies to the shareholders of the company
shares in ArcelorMittal. The same majority rule would apply to being divided or to such company, and certain similar
amendments of the provisions of the Articles of Association that restructurings must be approved by an extraordinary general
set out the foregoing rule. meeting of shareholders of the relevant companies held in the
presence of a notary. These transactions require the approval of
Annual accounts
at least two-thirds of the votes cast at a general meeting of
Each year before submission to the annual ordinary general
shareholders of each of the companies where at least 50% of
meeting of shareholders, the Board of Directors approves the
the share capital is represented upon first call, with no such
stand-alone audited financial statements for ArcelorMittal, the
quorum being required at a reconvened meeting.
parent company of the ArcelorMittal group as well as the
consolidated financial statements of the ArcelorMittal group, Liquidation
each of which are prepared in accordance with IFRS. The Board In the event of the liquidation, dissolution or winding-up of
of Directors also approves the management reports on each of ArcelorMittal, the assets remaining after allowing for the
the stand-alone audited financial statements and the payment of all liabilities will be paid out to the shareholders pro
consolidated financial statements, and in respect of each of rata to their respective shareholdings. The decision to liquidate,
these sets of accounts a report must be issued by the dissolve or wind-up the Company requires the approval of at
independent auditors. least two-thirds of the votes cast at a general meeting of
shareholders where at first call at least 50% of the share capital
The stand-alone audited financial statements, the consolidated
is represented, with no quorum being required at a reconvened
financial statements, the management reports and the auditor’s
meeting. Irrespective of whether the liquidation is subject to a
reports will be available on request from the Company and on
vote at the first or a subsequent extraordinary general meeting
the Company’s website from the date of publication of the
of shareholders, it requires the approval of at least two-thirds of
convening notice for the annual ordinary general meeting of
the votes cast at the extraordinary general meeting of
shareholders.
shareholders.
The stand-alone audited financial statements and the
Mandatory bid—squeeze-out right—sell-out right
consolidated financial statements, after their approval by the
Mandatory bid. The Luxembourg law of May 19, 2006
annual ordinary general meeting of shareholders, are filed with
implementing Directive 2004/25/EC of the European Parliament
the Luxembourg Register of Commerce and Companies.
and the Council of April 21, 2004 on takeover bids, as amended
Dividends from time to time (the “Takeover Law”), provides that, if a person
Except for shares held in treasury by the Company, each acting alone or in concert acquires securities of ArcelorMittal
ArcelorMittal share is entitled to participate equally in dividends which, when added to any existing holdings of ArcelorMittal
if and when declared out of funds legally available for such securities, give such person voting rights representing at least
purposes. The Articles of Association provide that the annual one third of all of the voting rights attached to the issued shares
ordinary general meeting of shareholders may declare a in ArcelorMittal, this person is obliged to make an offer for the
dividend and that the Board of Directors may declare interim remaining shares in ArcelorMittal. In a mandatory bid situation
dividends within the limits set by Luxembourg law. the “fair price” is in principle considered to be the highest price
paid by the offeror or a person acting in concert with the offeror
Declared and unpaid dividends held by ArcelorMittal for the for the securities during the 12–month period preceding the
account of its shareholders do not bear interest. Under mandatory bid.
Luxembourg law, claims for dividends lapse in favor of
ArcelorMittal’s Articles of Association provide that any person
ArcelorMittal five years after the date on which the dividends
who acquires shares giving them 25% or more of the total voting
have been declared.
rights of ArcelorMittal must make or cause to be made, in each
country where ArcelorMittal’s securities are admitted to trading
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on a regulated or other market and in each of the countries in following description summarizes these obligations. ArcelorMittal
which ArcelorMittal has made a public offering of its shares, an shareholders are advised to consult with their own legal
unconditional public offer of acquisition for cash to all advisers to determine whether the notification obligations apply
shareholders for all of their shares and also to all holders of to them.
securities giving access to capital or linked to capital or whose
rights are dependent on the profits of ArcelorMittal. The price The Transparency Law provides that, if a person acquires or
offered must be fair and equitable and must be based on a disposes of a shareholding in ArcelorMittal, and if following the
report drawn up by a leading international financial institution acquisition or disposal the proportion of voting rights held by the
nominated by the Company. person reaches, exceeds or falls below one of the thresholds of
5%, 10%, 15%, 20%, 25%, one-third, 50% or two-thirds of the
Squeeze-out right. The Takeover Law provides that, when an total voting rights existing when the situation giving rise to a
offer (mandatory or voluntary) is made to all of the holders of declaration occurs, the relevant person must simultaneously
voting securities of ArcelorMittal and if after such offer the notify ArcelorMittal and the CSSF (the Luxembourg securities
offeror holds at least 95% of the securities carrying voting rights regulator) of the proportion of voting rights held by it further to
and 95% of the voting rights, the offeror may require the holders such event within four Luxembourg Stock Exchange trading
of the remaining securities to sell those securities (of the same days of the day of execution of the transaction triggering the
class) to the offeror. The price offered for such securities must threshold crossing.
be a fair price. The price offered in a voluntary offer would be
presumed a fair price in the squeeze-out proceedings if the A person must also notify ArcelorMittal of the proportion of his or
offeror acquired at least 90% of the ArcelorMittal shares carrying her voting rights if that proportion reaches, exceeds or falls
voting rights that were the subject of the offer. The price paid in below the above-mentioned thresholds as a result of events
a mandatory offer is presumed a fair price. The consideration changing the breakdown of voting rights.
paid in the squeeze-out proceedings must take the same form
The above notification obligations also apply to persons who
as the consideration offered in the offer or consist solely of cash.
directly or indirectly hold financial instruments linked to
Moreover, an all-cash option must be offered to the remaining
ArcelorMittal shares. Pursuant to article 12 a. of the
ArcelorMittal shareholders. Finally, the right to initiate squeeze-
Transparency Law, persons who hold ArcelorMittal shares and
out proceedings must be exercised within three months
financial instruments linked to ArcelorMittal shares must
following the expiration of the offer.
aggregate their holding.
Sell-out right. The Takeover Law provides that, when an offer
ArcelorMittal’s Articles of Association also provide that the above
(mandatory or voluntary) is made to all of the holders of voting
disclosure obligations also apply to:
securities of ArcelorMittal and if after such offer the offeror holds
securities carrying more than 90% of the voting rights, the • any acquisition or disposal of shares resulting in the
remaining security holders may require that the offeror purchase threshold of 2.5% of voting rights in ArcelorMittal being
the remaining securities of the same class. The price offered in crossed upwards or downwards,
a voluntary offer would be presumed “fair” in the sell-out
• any acquisition or disposal of shares resulting in the
proceedings if the offeror acquired at least 90% of the
threshold of 3.0% of voting rights in ArcelorMittal being
ArcelorMittal shares carrying voting rights and which were the
crossed upwards or downwards, and
subject of the offer. The price paid in a mandatory offer is
presumed to be a fair price. The consideration paid in the sell- • with respect to any shareholder holding at least 3.0%
out proceedings must take the same form as the consideration of the voting rights in ArcelorMittal, to any acquisition or
offered in the offer or consist solely of cash. Moreover, an all- disposal of shares resulting in successive thresholds of
cash option must be offered to the remaining ArcelorMittal 1.0% of voting rights being crossed upwards or
shareholders. Finally, the right to initiate sell-out proceedings downwards.
must be exercised within three months following the expiration Pursuant to the Articles of Association, any person who acquires
of the offer. shares giving him or her 5% or more or a multiple of 5% or more
of the voting rights must inform ArcelorMittal within 10
Disclosure of significant ownership in ArcelorMittal shares Luxembourg Stock Exchange trading days following the date on
Holders of ArcelorMittal shares and derivatives or other financial which the threshold was crossed by registered letter with return
instruments linked to ArcelorMittal shares may be subject to the receipt requested as to whether he or she intends to acquire or
notification obligations of the Luxembourg law of January 11, dispose of shares in ArcelorMittal within the next 12 months or
2008, as amended, on transparency requirements regarding intends to seek to obtain control over ArcelorMittal or to appoint
information about issuers whose securities are admitted to a member to ArcelorMittal’s Board of Directors.
trading on a regulated market (the “Transparency Law”). The
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The sanction of suspension of voting rights automatically fulfilling senior management responsibilities within ArcelorMittal
applies, subject to limited exceptions set out in the and falling with the definition of “Persons Discharging Senior
Transparency Law, to any shareholder (or group of Managerial Responsibilities” set out below and persons closely
shareholders) who has (or have) crossed the thresholds set out associated with them must disclose to the CSSF and to
in article 7 of the Articles of Association and articles 8 to 15 of ArcelorMittal all transactions relating to shares or debt
the Transparency Law but have not notified the Company instruments of ArcelorMittal or derivatives or other financial
accordingly. The sanction of suspension of voting rights will instruments linked to any shares or debt instruments of
apply until such time as the notification has been properly made ArcelorMittal (together the “Financial Instruments”) conducted by
by the relevant shareholder(s). them or for their account. Such notifications shall be made
promptly and not later than three business days after the date of
For the purposes of calculating the percentage of a the transaction.
shareholder’s voting rights in ArcelorMittal, the following are
taken into account: “Persons Discharging Senior Managerial Responsibilities” within
ArcelorMittal are the members of the Board of Directors, and the
• voting rights held by a third party with whom that Executive Office, the Executive Officers, and other executives
person or entity has concluded an agreement and occupying a high level management position with regular access
which obliges them to adopt, by concerted exercise of to non-public material information relating, directly or indirectly,
the voting rights they hold, a lasting common policy to ArcelorMittal and have the authority to make management
towards ArcelorMittal; decisions about the future development of the Company and its
• voting rights held by a third party under an agreement business strategy (see “Management and employees—
concluded with that person or entity providing for the Directors and senior management" for a description of senior
temporary transfer for consideration of the voting rights management). Persons closely associated with them include
in question; their respective family members.
• voting rights attaching to shares pledged as collateral
Both information on trading in Financial Instruments by “Persons
with that person or entity, provided the person or entity
Discharging Senior Managerial Responsibilities” and
controls the voting rights and declares its intention to
ArcelorMittal’s Insider Dealing Regulations are available on
exercise them;
www.arcelormittal.com under “Investors—Corporate
• voting rights attaching to shares in which a person or Governance—Share Transactions by Management”. For more
entity holds a life interest; information, see “Management and employees—Directors and
• voting rights which are held or may be exercised within senior management”. In 2023, nine notifications were received
the meaning of the four foregoing points by an by ArcelorMittal from such persons and filed with the CSSF.
undertaking controlled by that person or entity;
Related Party Transactions
• voting rights attaching to shares deposited with that
The Shareholders’ Rights Law provides that a company is now
person or entity which the person or entity may
required to publicly disclose material transactions (excluding
exercise at its discretion in the absence of specific
"transactions taking place as part of the company's ordinary
instructions from the shareholders;
activity and concluded under normal market conditions") with
• voting rights held by a third party in its own name on related parties no later than at the time of conclusion of the
behalf of that person or entity; and transaction. The same requirement applies to material
• voting rights which that person or entity may exercise transactions concluded between related parties of a company
as a proxy where the person or entity may exercise the and subsidiaries of such company. The Board of Directors
voting rights in its sole discretion. must approve material transactions of the Company with related
parties. A transaction with a related party is material if (i) its
In addition, the Articles of Association provide that, for the
publication and divulgation may have a significant impact on the
purposes of calculating a person’s voting rights in ArcelorMittal,
economic decisions of shareholders and (ii) it may create a risk
the voting rights attached to shares underlying any other
for the company and its shareholders which are not related
financial instruments owned by that person (such as convertible
parties, including minority shareholders. In the determination of
notes) must be taken into account for purposes of the
whether a transaction is material both the nature of the
calculation described above.
transaction and the position of the related party must be taken
Disclosure of insider dealing transactions into account.
Members of the Board of Directors and the members of the
Executive Office, Executive Officers and other executives

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Publication of regulated information original parties to the MoU that have since ceased to hold
Since January 2009, disclosure to the public of “regulated Company shares). In April 2008, the Board of Directors
information” (within the meaning of the Luxembourg approved resolutions amending certain provisions of the MoU in
Transparency Law) concerning ArcelorMittal has been made by order to adapt it to the Company’s needs in the post-merger and
publishing the information through the centralized regulated post-integration phase, as described under “Management and
information filing and storage system managed by the employees—Corporate governance—Operation—Lead
Luxembourg Stock Exchange and accessible in English and Independent Director”.
French on www.bourse.lu, in addition to the publication by
ArcelorMittal of the information by way of press release. All On the basis of the MoU, Arcelor’s Board of Directors
news and press releases issued by the Company are available recommended Mittal Steel’s offer for Arcelor, and the parties to
on www.arcelormittal.com in the “News and Media” section. the MoU agreed to certain corporate governance and other
matters relating to the combined ArcelorMittal group. Certain
Limitation of directors’ liability/indemnification of Directors and provisions of the MoU relating to corporate governance were
the members of the Executive Office incorporated into the Articles of Association of ArcelorMittal at
The Articles of Association provide that ArcelorMittal will, to the the extraordinary general meeting of the shareholders on
broadest extent permitted by Luxembourg law, indemnify every November 5, 2007.
director and member of the Executive Office as well as every
former director or member of the Executive Office for fees, costs Certain additional provisions of the MoU expired effective
and expenses reasonably incurred in the defense or resolution August 1, 2009 and on August 1, 2011. ArcelorMittal’s corporate
(including a settlement) of all legal actions or proceedings, governance rules will continue to reflect, subject to those
whether civil, criminal or administrative, he or she has been provisions of the MoU that have been incorporated into the
involved in his or her role as former or current director or Articles of Association, the best standards of corporate
member of the Executive Office. governance for comparable companies and to conform with the
corporate governance aspects of the NYSE listing standards
The right to indemnification does not exist in the case of gross applicable to non-U.S. companies and Ten Principles of
negligence, fraud, fraudulent inducement, dishonesty or for a Corporate Governance of the Luxembourg Stock Exchange.
criminal offense, or if it is ultimately determined that the director
or members of the Executive Office has not acted honestly, in The following summarizes the main provisions of the MoU that
good faith and with the reasonable belief that he or she was remain in effect or were in effect in 2023.
acting in the best interests of ArcelorMittal.
Standstill
The Company also maintains liability insurance for its directors The MoU Group agreed not to acquire, directly or indirectly,
and officers, including insurance against liabilities arising under ownership or control of an amount of shares in the capital stock
the U.S. Securities Act of 1933, as amended, and the U.S. of the Company exceeding the percentage of shares in the
Securities Exchange Act of 1934, as amended. Company that it will own or control following completion of the
Offer (as defined in the MoU) for Arcelor and any subsequent
Material contracts offer or compulsory buy-out, except with the prior written
The following are material contracts, not entered into in the consent of a majority of the independent directors on the
ordinary course of business, to which ArcelorMittal has been a Company’s Board of Directors. Any shares acquired in violation
party during the past two years. of this restriction will be deprived of voting rights and shall be
promptly sold by the MoU Group. Notwithstanding the above, if
ArcelorMittal Equity Incentive Plan, Performance Share Unit (and whenever) the MoU Group holds, directly and indirectly,
Plan and Special Grant less than 45% of the then-issued Company shares, the MoU
For a description of such plans, please refer to “Management Group may purchase (in the open market or otherwise)
and employees—Compensation.” Company shares up to such 45% limit. In addition, the MoU
Group is also permitted to own and vote shares in excess of the
Memorandum of Understanding threshold mentioned in the immediately preceding paragraph or
Mr. Lakshmi Mittal, Mrs. Usha Mittal, Lumen Investments S.à r.l., the 45% limit mentioned above, if such ownership results from
Nuavam Investments S.à r.l. (together, the “MoU Group”) and (1) subscription for shares or rights in proportion to its existing
the Company are parties to a Memorandum of Understanding shareholding in the Company where other shareholders have
(“MoU”), dated June 25, 2006, to combine Mittal Steel and not exercised the entirety of their rights or (2) any passive
Arcelor in order to create the world’s leading steel company. crossing of this threshold resulting from a reduction of the
(Lumen Investments S.à r.l. and Nuavam Investments S.à r.l. number of Company shares (e.g., through self-tender offers or
became parties following the assumption of the obligations of share buy-backs) if, in respect of (2) only, the decisions to
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implement such measures were taken at a shareholders’ Luxembourg takeover law disclosure
meeting in which the MoU Group did not vote or by the The following disclosure is provided based on article 11 of the
Company’s Board of Directors with a majority of independent Luxembourg law of May 19, 2006 transposing Directive
directors voting in favor. 2004/25/EC of the European Parliament and the Council of April
21, 2004 on takeover bids (the “Takeover Law”). The Articles of
Once the MoU Group exceeds the threshold mentioned in the Association are available on www.arcelormittal.com, under
first paragraph of this “Standstill” subsection or the 45% limit, as Investors, Corporate Governance, Current Articles of
the case may be, as a consequence of any corporate event set Association.
forth in (1) or (2) above, it shall not be permitted to increase the
percentage of shares it owns or controls in any way except as a With regard to articles 11(1)(a) and (c) of the Takeover Law, the
result of subsequent occurrences of the corporate events Company has issued a single category of shares (ordinary
described in (1) or (2) above, or with the prior written consent of shares), and the Company’s shareholding structure showing
a majority of the independent directors on the Company’s Board each shareholder owning 5% or more of the Company’s share
of Directors. capital is available elsewhere in this report and on
www.arcelormittal.com under Investors, Corporate Governance,
If subsequently the MoU Group sells down below the threshold Shareholding Structure, where the shareholding structure chart
mentioned in the first paragraph of this “Standstill” subsection or is updated monthly.
the 45% limit, as the case may be, it shall not be permitted to
exceed the threshold mentioned in the first paragraph of this With regard to article 11(1)(b) of the Takeover Law, the ordinary
“Standstill” subsection or the 45% limit, as the case may be, shares issued by the Company are listed on various stock
other than as a result of any corporate event set out in (1) or exchanges including NYSE and are freely transferable.
(2) above or with the prior written consent of a majority of the
independent directors. With regard to article 11(1)(d) of the Takeover Law, each
ordinary share of the Company gives right to one vote, as set
Finally, the MoU Group is permitted to own and vote shares in out in article 13.6 of the Articles of Association, and there are no
excess of the threshold mentioned in the first paragraph of this special control rights attaching to the shares. Article 8 of the
“Standstill” subsection or the 45% limit mentioned above if it Articles of Association provides that the Mittal Shareholder (Mr
acquires the excess shares in the context of a takeover bid by a Lakshmi N. Mittal, Mrs Usha Mittal or any of their heirs or
third party and (1) a majority of the independent directors of the successors acting directly or indirectly and/or the trust or trusts
Company’s Board of Directors consents in writing to such of which Mr. Lakshmi N. Mittal, Mrs. Usha Mittal and/or their
acquisition by the MoU Group or (2) the MoU Group acquires heirs or successors are the beneficiaries, hold or control
such shares in an offer for all of the shares of the Company. ArcelorMittal shares or any other entity controlled, directly or
indirectly, by either of them) may, at its discretion, exercise the
Non-compete right of proportional representation and nominate candidates for
For so long as the MoU Group holds and controls at least 15% appointment to the Board of Directors (defined as “Mittal
of the outstanding shares of the Company or has Shareholder Nominees”). The Mittal Shareholder has not, to
representatives on the Company’s Board of Directors or date, exercised that right.
Executive Office, the MoU Group and its affiliates will not be
permitted to invest in, or carry on, any business competing with Articles 11(1)(e) and (f) of the Takeover Law are not applicable
the Company, except for PT ISPAT Indo. to the Company. However, the sanction of suspension of voting
rights automatically applies, subject to limited exceptions set out
Exchange controls and other limitations affecting security in the Transparency Law (as defined above), to any shareholder
holders (or group of shareholders) who has (or have) crossed the
There are no legislative or other legal provisions currently in thresholds set out in article 7 of the Articles of Association and
force in Luxembourg or arising under ArcelorMittal’s Articles of articles 8 to 15 of the Transparency Law but have not notified
Association that restrict the payment of dividends to holders of the Company accordingly. The sanction of suspension of voting
ArcelorMittal shares not resident in Luxembourg, except for rights will apply until such time as the notification has been
regulations restricting the remittance of dividends and other properly made by the relevant shareholder(s).
payments in compliance with United Nations and EU sanctions.
There are no limitations, either under the laws of Luxembourg or Article 11(1)(g) of the Takeover Law is not applicable to the
in the Articles of Association, on the right of non-Luxembourg Company.
nationals to hold or vote ArcelorMittal shares.
With regard to article 11(1)(h) of the Takeover Law, the Articles
of Association provide that the directors are elected at the

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annual general meeting of shareholders for a term that may not companies, broker-dealers, traders in securities that elect to use
exceed three years, and may be re-elected. The rules governing a mark-to-market method of accounting for their securities
amendments to the Articles of Association are described holdings, regulated investment companies, real estate
elsewhere in this report and are set out in article 19 of the investment trusts, partnerships and other pass-through entities,
Articles of Association. investors liable for any U.S. alternative minimum tax, investors
that own or are treated as owning 10% or more of the total
With regard to article 11(1)(i) of the Takeover Law, the 2023 combined voting power or value of ArcelorMittal’s shares,
AGM granted the Board of Directors a new share buy-back investors that hold ArcelorMittal shares as part of a straddle,
authorization whereby the Board of Directors may authorize the hedge, conversion, constructive sale or other integrated
acquisition or sale of Company shares including, but not limited transaction, and U.S. Holders whose functional currency is not
to, entering into off-market and over-the-counter transactions the U.S. dollar) may be subject to special tax rules. This
and the acquisition of shares through derivative financial summary is based on the U.S. Internal Revenue Code of 1986,
instruments. Any acquisitions, disposals, exchanges, as amended (the “Code”), the Treasury regulations issued
contributions or transfers of shares by the Company or other thereunder, judicial decisions, and published rulings and
companies in the ArcelorMittal group must be in accordance administrative pronouncements of the U.S. Internal Revenue
with the Luxembourg law of December 23, 2016 on market Service (“IRS”), all as in effect on the date hereof, and the
abuse, Regulation (EU) No. 596/2014 of the European income tax treaty between the United States and Luxembourg
Parliament and of the Council of April 16, 2014 on market abuse dated April 3, 1996 (as amended by any subsequent protocols)
and Commission Delegated Regulation (EU) No. 2016/1052 of (the “Treaty”). Those authorities are subject to change (possibly
March 8, 2016 with regard to regulatory technical standards for with retroactive effect) or to differing interpretations.
the conditions applicable to buy-back programs and stabilization
measures and may be carried out by all means, on or off- This summary does not address any aspects of U.S. federal tax
market, including by a public offer to buy-back shares, or by the law other than income taxation, or any state, local, or non-U.S.
use of derivatives or option strategies. The fraction of the capital tax considerations that may be applicable to investors, or the
acquired or transferred in the form of a block of shares may Medicare contribution tax applicable to net investment income of
amount to the entire program. Such transactions may be carried certain non-corporate U.S. Holders. Investors are urged to
out at any time, including during a tender offer period, in consult their tax advisors regarding the U.S. federal, state, local
accordance with applicable laws and regulations, including and other tax consequences of acquiring, owning and disposing
Section 10(b) and Section 9(a)(2) of the Securities Exchange of ArcelorMittal shares.
Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5
promulgated under the Exchange Act. The authorization is valid For purposes of this discussion, a “U.S. Holder” is a beneficial
until the 2024 AGM, or until the date of its renewal by a owner of ArcelorMittal shares that is, for U.S. federal income tax
resolution of the general meeting of shareholders if such purposes:
renewal date is prior to the 2024 AGM. Details relating to the
• an individual citizen or resident of the United States;
repurchase of shares, as approved by the 2023 AGM can be
found under "—Memorandum and Articles of Association - • a corporation (or other entity taxable as a corporation
Repurchase of shares". for U.S. federal income tax purposes) organized in or
under the laws of the United States, any state thereof,
Articles 11(1)(j) and (k) of the Takeover Law are not applicable
or the District of Columbia; or
to the Company.
• any other person that is subject to U.S. federal income
Taxation
tax on a net income basis in respect of the ArcelorMittal
United States taxation shares.
The following discussion is a summary of the material U.S.
The U.S. federal income tax consequences of a partner in a
federal income tax consequences that are likely to be relevant to
partnership holding ArcelorMittal shares generally will depend
U.S. Holders (as defined below) in respect of the ownership and
on the status of the partner and the activities of the partnership.
disposition of ArcelorMittal common shares (hereinafter the
The Company recommends that partners in such a partnership
“ArcelorMittal shares”) that are held as capital assets (such as
consult their own tax advisors.
for investment purposes). This summary does not purport to
address all material tax consequences that may be relevant to a Except where specifically described below, this discussion
particular U.S. Holder. This summary also does not take into assumes that ArcelorMittal is not a passive foreign investment
account the specific circumstances of particular investors, some company (“PFIC”) for U.S. federal income tax purposes. See “—
of which (such as tax-exempt entities, banks, insurance Passive foreign investment company ("PFIC") status”.
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(a) Taxation of distributions years, and ArcelorMittal does not expect to be a PFIC for its
Cash distributions made by ArcelorMittal in respect of 2024 taxable year. See “—Passive foreign investment company
ArcelorMittal shares will constitute a taxable dividend when such ("PFIC") status”.
distribution is actually or constructively received, to the extent
such distribution is paid out of the current or accumulated U.S. Holders of ArcelorMittal shares should consult their own tax
earnings and profits of ArcelorMittal (as determined under U.S. advisors regarding the availability of the reduced rate of U.S.
federal income tax principles). The amount of any distribution federal income tax on dividends in light of their own particular
will include the amount of any applicable Luxembourg circumstances.
withholding tax. To the extent the amount of any distribution
Subject to generally applicable limitations and conditions,
received by a U.S. Holder in respect of ArcelorMittal shares
Luxembourg dividend withholding tax paid at the appropriate
exceeds the current or accumulated earnings and profits of
rate applicable to the U.S. Holder may be eligible for a credit
ArcelorMittal, the distribution (1) will be treated as a non-taxable
against such U.S. Holder’s U.S. federal income tax liability.
return of the U.S. Holder’s adjusted tax basis in those
These generally applicable limitations and conditions include
ArcelorMittal shares and (2) thereafter will be treated as U.S.-
new requirements recently adopted by the IRS in regulations
source capital gain. Because ArcelorMittal does not maintain
promulgated in December 2021, and any Luxembourg tax will
calculations of earnings and profits under U.S. federal income
need to satisfy these requirements in order to be eligible to be a
tax principles, it is expected that distributions generally will be
creditable tax for a U.S. Holder. In the case of a U.S. Holder that
reported to U.S. Holders as dividends. Distributions of additional
either (i) is eligible for, and properly elects, the benefits of the
ArcelorMittal shares that are made to U.S. Holders with respect
Treaty, or (ii) consistently elects to apply a modified version of
to their ArcelorMittal shares, and that are part of a pro rata
these rules under recently issued temporary guidance and
distribution to all ArcelorMittal shareholders, generally will not be
complies with specific requirements set forth in such guidance,
subject to U.S. federal income tax unless the U.S. Holder has
the Luxembourg tax on dividends will be treated as meeting the
the right to receive cash or property instead, in which case the
new requirements and therefore as a creditable tax. In the case
U.S. Holder will be treated as if it received cash equal to the fair
of all other U.S. Holders, the application of these requirements
market value of the distribution.
to the Luxembourg tax on dividends is uncertain, and we have
The U.S. dollar amount of a taxable dividend generally will be not determined whether these requirements have been met. If
included in the gross income of a U.S. Holder as ordinary the Luxembourg dividend tax is not a creditable tax for a U.S.
income derived from sources outside the United States for U.S. Holder or the U.S. Holder does not elect to claim a foreign tax
foreign tax credit purposes and generally will be passive credit for any foreign income taxes paid or accrued in the same
category income for purposes of the foreign tax credit limitation. taxable year, the U.S. Holder may be able to deduct the
Dividends paid in euro will be included in a U.S. Holder’s income Luxembourg tax in computing such U.S. Holder’s taxable
in a U.S. dollar amount calculated by reference to the exchange income for U.S. federal income tax purposes. The temporary
rate in effect on the date the dividend is received; a recipient of guidance discussed above also indicates that the Treasury and
such dividends that converts such euro to dollars upon receipt the IRS are considering proposing amendments to the
generally should not be required to recognize foreign currency December 2021 regulations and that the temporary guidance
gain or loss in respect of the dividend income. Dividends paid by can be relied upon until additional guidance is issued that
ArcelorMittal will not be eligible for the dividends-received withdraws or modifies the temporary guidance. The rules with
deduction generally allowed to U.S. corporations in respect of respect to foreign tax credits are complex and involve the
dividends received from U.S. corporations. application of rules that depend on a U.S. Holder’s particular
circumstances. Accordingly, U.S. Holders are urged to consult
Subject to certain exceptions for short-term or hedged positions, their tax advisors regarding the availability of the foreign tax
taxable dividends received by certain non-corporate U.S. credit under their particular circumstances.
Holders (including individuals) with respect to the ArcelorMittal
shares will be subject to U.S. federal income taxation at rates (b) Taxation of sales, exchanges, or other dispositions of
that are lower than the rates applicable to ordinary income if the ArcelorMittal shares
dividends represent “qualified dividend income”. Dividends paid Sales or other taxable dispositions by U.S. Holders of
on the ArcelorMittal shares will be treated as qualified dividend ArcelorMittal shares generally will give rise to gain or loss equal
income if ArcelorMittal is not a Passive foreign investment to the difference between the amount realized on the disposition
company ("PFIC") in the year in which the dividend was paid or and the U.S. Holder’s tax basis in such ArcelorMittal shares, as
in the year prior thereto. As discussed further below, determined in U.S. dollars. A U.S. Holder generally will have an
ArcelorMittal believes that it was not a PFIC for U.S. federal initial tax basis in each ArcelorMittal share equal to its U.S.
income tax purposes with respect to its 2022 and 2023 taxable dollar cost to the U.S. Holder.

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In general, gain or loss recognized on the sale or exchange of extends the statute of limitations with respect to the tax return to
ArcelorMittal shares will be capital gain or loss and, if the U.S. six years after the return was filed. U.S. Holders who fail to
Holder’s holding period for such ArcelorMittal shares exceeds report the required information could be subject to substantial
one year, will be long-term capital gain or loss. Certain U.S. penalties. U.S. Holders are encouraged to consult with their own
Holders, including individuals, are eligible for preferential rates tax advisers regarding the possible application of these rules,
of U.S. federal income tax in respect of long-term capital gains. including the application of the rules to their particular
The deduction of capital losses against ordinary income is circumstances.
subject to limitations under the Code.
Backup withholding and information reporting
Passive foreign investment company (“PFIC”) status The payment of proceeds received upon the sale, exchange or
Special U.S. federal income tax rules apply to U.S. Holders redemption of ArcelorMittal shares by U.S. Holders within the
owning stock of a PFIC. ArcelorMittal believes that it was not a United States (or through certain U.S.-related financial
PFIC for U.S. federal income tax purposes with respect to its intermediaries), and dividends on ArcelorMittal shares paid to
2022 and 2023 taxable years, and ArcelorMittal does not expect U.S. Holders in the United States (or through certain U.S.-
to be a PFIC for its 2024 taxable year. This conclusion is based related financial intermediaries), will be subject to information
upon an annual analysis of its financial position and an reporting and may be subject to backup withholding unless the
interpretation of the PFIC provisions that ArcelorMittal believes U.S. Holder (1) is an exempt recipient, and establishes that
is correct. No assurances can be made, however, that the exemption if required or (2) in the case of backup withholding,
applicable tax law or relevant factual circumstances will not provides an IRS Form W-9 (or an acceptable substitute form)
change in a manner that affects the determination of that contains the U.S. Holder’s taxpayer identification number
ArcelorMittal’s PFIC status. If, contrary to the foregoing, and that certifies that no loss of exemption from backup
ArcelorMittal were classified as a PFIC, a U.S. Holder of withholding has occurred.
ArcelorMittal shares would be subject to an increased tax
Backup withholding is not an additional tax. The amount of
liability upon the gain realized on a sale or other disposition of
backup withholding imposed on a payment to a U.S. Holder will
ArcelorMittal shares and upon the receipt of certain distributions
be allowed as a credit against the holder’s U.S. federal income
treated as “excess distributions”. Any gain realized would not be
tax liability, if any, or as a refund, so long as the required
treated as a capital gain but would be treated as if the U.S.
information is properly furnished to the IRS. Holders that are not
Holder had realized its gain and certain “excess distributions”,
"U.S. persons" (as defined in the Code) may need to comply
as applicable, ratably over its holding period for ArcelorMittal
with certification procedures to establish their non-U.S. status in
shares and would be taxed at the highest tax rate in effect for
order to avoid information reporting and backup withholding tax
each such year to which the gain was allocated, together with
requirements.
an interest charge in respect of the tax attributable to each such
year. If ArcelorMittal were a PFIC and its shares constitute THE SUMMARY OF U.S. FEDERAL INCOME TAX
“marketable stock”, a U.S. Holder may elect to instead be taxed CONSEQUENCES SET OUT ABOVE IS INTENDED FOR
annually on a mark-to-market basis with respect to its GENERAL INFORMATION PURPOSES ONLY. EACH
ArcelorMittal shares and would not be subject to the PFIC rules INVESTOR IN ARCELORMITTAL ORDINARY SHARES IS
described above. U.S. Holders should consult their tax advisors URGED TO CONSULT ITS OWN TAX ADVISOR WITH
regarding the application of the PFIC rules to ArcelorMittal RESPECT TO THE PARTICULAR TAX CONSEQUENCES OF
including the availability and consequences of a mark-to-market THE ACQUISITION, OWNERSHIP AND DISPOSITION OF
election with respect to their shares of ArcelorMittal. ARCELORMITTAL SHARES BASED ON THE INVESTOR’S
PARTICULAR CIRCUMSTANCES.
Foreign Financial Asset Reporting
Certain U.S. Holders that own “specified foreign financial Luxembourg taxation
assets” with an aggregate value in excess of U.S.$50,000 on The following is a summary addressing certain material
the last day of the taxable year or U.S.$75,000 at any time Luxembourg tax consequences that are likely to be relevant to
during the taxable year are generally required to file an holders of shares in respect of the ownership and disposition of
information statement along with their tax returns, currently on shares in ArcelorMittal.
Form 8938, with respect to such assets. “Specified foreign
financial assets” include any financial accounts held at a non- This summary does not purport to address all material tax
U.S. financial institution, as well as securities issued by a non- considerations that may be relevant to a holder or prospective
U.S. issuer that are not held in accounts maintained by financial holder of ArcelorMittal shares. This summary also does not take
institutions. The understatement of income attributable to into account the specific circumstances of particular investors
“specified foreign financial assets” in excess of U.S.$5,000 some of which may be subject to special tax rules, including

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dealers in securities, financial institutions, insurance companies, withholding tax does not apply, a Luxembourg company may be
investment funds. entitled to a tax credit.

This summary is based on the laws, regulations and applicable Luxembourg resident individual holders
tax treaties as in effect on the date hereof in Luxembourg, all of Luxembourg withholding tax on dividends paid by ArcelorMittal
which are subject to change, possibly with retroactive effect. to a Luxembourg resident individual holder may entitle such
Holders of ArcelorMittal shares should consult their own tax Luxembourg Holder to a tax credit for the tax withheld.
advisers as to the particular tax consequences, under the tax
laws of the country of which they are residents for tax purposes Non-Luxembourg Holders
of the ownership or disposition of ArcelorMittal shares. Non-Luxembourg Holders of ArcelorMittal shares who have held
a shareholding in ArcelorMittal representing at least 10% of
This summary does not address the terms of employee stock ArcelorMittal’s share capital (or shares with an acquisition cost
options or other incentive plans implemented by ArcelorMittal of at least EUR 1.2 million) for an uninterrupted period of at least
and its subsidiaries and does not purport to provide the holders 12 months (or where held for a shorter period, where the holder
of stock subscription options or other comparable instruments takes the commitment to hold the qualifying shareholding for
(including shares acquired under employee share ownership such period) may benefit from an exemption from the dividend
programs) with a description of the possible tax and social withholding tax if they are: (i) entities which fall within the scope
security implications for them, nor to determine under which of Article 2 of the European Council Directive 2011/96/EU, as
conditions these options or other instruments are or may amended (the “EU Parent-Subsidiary Directive”) and which are
become exercisable. These holders are therefore urged to not excluded to benefit from the EU Parent-Subsidiary Directive
consult their own tax advisers as to the potential tax and social under its mandatory general anti-avoidance rule (“GAAR”) in
security implications of an exercise of their options or other each case as implemented in Luxembourg, or (ii) corporates
instruments. subject to a tax comparable to Luxembourg corporate income
tax and which are resident of a country having concluded a
As used herein, a “Luxembourg individual” means an individual double tax avoidance treaty with Luxembourg, or (iii) corporates
resident in Luxembourg who is subject to personal income tax subject to a tax comparable to Luxembourg corporate income
(impôt sur le revenu) on his or her worldwide income from tax and which are resident in a State being part of the European
Luxembourg or foreign sources, and a “Luxembourg company” Economic Area (EEA) other than a Member State of the
means a company or another entity resident in Luxembourg European Union, or (iv) corporates resident in Switzerland
subject to corporate income tax (impôt sur le revenu des subject to corporate income tax in Switzerland without benefiting
collectivités) on its worldwide income from Luxembourg or from an exemption.
foreign sources. For the purposes of this summary, Luxembourg
individuals and Luxembourg companies are collectively referred Non-Luxembourg Holders of ArcelorMittal shares who are tax
to as “Luxembourg Holders”. A “non-Luxembourg Holder” means resident in a country having a double tax avoidance treaty with
any investor in ArcelorMittal shares other than a Luxembourg Luxembourg may claim for a reduced withholding tax rate or a
Holder. withholding tax relief under the conditions and subject to the
limitations set forth in the relevant treaty.
(a) Luxembourg withholding tax on dividends paid on
ArcelorMittal shares (b) Luxembourg income tax on dividends paid on
Dividends distributed by ArcelorMittal will in principle be subject ArcelorMittal shares and capital gains
to Luxembourg withholding tax at the rate of 15%.
Luxembourg resident individual holders
Luxembourg resident corporate holders For Luxembourg individuals, income in the form of dividends or
Dividend withholding tax exemption applies on dividends paid by capital gains derived from ArcelorMittal shares will normally be
ArcelorMittal to a Luxembourg company (that is, a fully taxable subject to individual income tax at the applicable progressive
entity within the meaning of Article 159 of the Luxembourg rate with a current top effective marginal rate of 45.78%
Income Tax Law) holding shares (or a Luxembourg permanent including the unemployment fund contribution at the maximum
establishment/representative of a qualifying foreign entity to rate of 9%. Such dividends may benefit from the 50% exemption
which the shares are attributable), which meets the qualifying set forth in Article 115(15a) of the Luxembourg Income Tax Law,
participation test (that is, a shareholding in ArcelorMittal of at subject to fulfillment of the conditions set out therein. Capital
least 10% or having an acquisition cost of at least EUR gains will only be taxable if they are realized on a sale of
1.2 million held or committed to be held for a minimum one year ArcelorMittal shares, which takes place within the first six
holding period) under the conditions of Article 147 of the months following their acquisition, or if the relevant holder (alone
Luxembourg Income Tax Law). If such exemption from dividend or together with his/her spouse or registered partner and his/her

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underage children), directly or indirectly, holds or has held more • the Luxembourg Holder is a legal entity subject to net
than 10% of the ArcelorMittal shares at any time during the past wealth tax in Luxembourg; or
five years.
• ArcelorMittal shares are attributable to an enterprise or
Luxembourg resident corporate holders part thereof which is carried on through a permanent
For Luxembourg companies, which do not benefit from a special establishment or a permanent representative in
tax regime, income in the form of dividends or capital gains Luxembourg of a non-resident entity.
derived from ArcelorMittal shares will be subject to corporate
income tax and municipal business tax. The combined rate for Net wealth tax is levied annually at a digressive rate depending
these two taxes (including an unemployment fund contribution of on the amount of the net wealth of the above holders, as
7%) for Luxembourg companies with registered office in determined for net wealth tax purposes (i.e. 0.5% on an amount
Luxembourg City is 24.94% in 2023. Such dividends may up to EUR 500 million and 0.05% on the amount of taxable net
benefit either from the 50% exemption set forth in Article wealth exceeding EUR 500 million).
115(15a) of the Luxembourg Income Tax Law or from the full
ArcelorMittal shares may be exempt from net wealth tax subject
exemption set forth in Article 166 of the Luxembourg Income Tax
to the conditions set forth by Article 60 of the Law of October 16,
Law, subject in each case to fulfillment of the respective
1934 on the valuation of assets (Bewertungsgesetz), as
conditions set out therein. Capital gains realized on the sale of
amended.
ArcelorMittal shares may benefit from the full exemption
provided for by the Grand Ducal Decree of December 21, 2001, Estate and gift tax
as amended, subject to fulfillment of the conditions set out Luxembourg inheritance tax may be levied on the transfer of
therein. ArcelorMittal shares upon the death of a Luxembourg individual.

Non-Luxembourg Holders Luxembourg gift tax will be levied in the event that a gift of
An individual or corporate non-Luxembourg Holder of ArcelorMittal shares is made pursuant to a notarial deed signed
ArcelorMittal shares who/which realizes a gain on disposal before a Luxembourg notary.
thereof (and who/which does not have a permanent
establishment in Luxembourg to which the ArcelorMittal shares Other Luxembourg tax considerations
would be attributable) will only be subject to Luxembourg No registration tax will be payable by a holder of shares upon
taxation on capital gains arising upon disposal of such shares if the issue, subscription or acquisition of shares in ArcelorMittal or
such holder has (if an individual, alone or together with his or upon the disposal of shares by sale or exchange.
her spouse or registered partner and underage children) directly
Evaluation of disclosure controls and procedures
or indirectly held more than 10% of the capital of ArcelorMittal,
at any time during the past five years, and either (1) such holder Disclosure controls and procedures
has been a resident of Luxembourg for tax purposes for at least Management maintains disclosure controls and procedures that
15 years and has become a non-resident within the last five are designed to ensure that information required to be disclosed
years preceding the realization of the gain, subject to any in the Company’s reports under the Securities Exchange Act of
applicable tax treaty, or (2) the disposal of ArcelorMittal shares 1934, as amended (the “Exchange Act”) is recorded, processed,
occurs within six months from their acquisition, subject to any summarized and reported within time periods specified in the
applicable tax treaty. SEC’s rules and forms, and that such information is
accumulated and communicated to management, including the
A corporate non-Luxembourg Holder, which has a permanent
Chief Executive Officer and Chief Financial Officer, as
establishment or a permanent representative in Luxembourg to
appropriate, to allow timely decisions regarding required
which ArcelorMittal shares would be attributable, will bear
disclosure. ArcelorMittal’s disclosure controls and procedures
corporate income tax and municipal business tax on dividends
are designed to provide reasonable assurance of achieving their
received and/or a gain realized on a disposal of such shares
objectives.
under the same conditions as are applicable to a Luxembourg
resident corporate holder, as described above. There are inherent limitations to the effectiveness of any system
of disclosure controls and procedures, including the possibility of
(c) Other taxes
human error and the circumvention or overriding of the controls
Net wealth tax
and procedures. Accordingly, even effective disclosure controls
Luxembourg net wealth tax will not be levied on a Luxembourg
and procedures can only provide reasonable assurance of
Holder unless:
achieving their control objectives.

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Management, under the supervision and with the participation of technology (“IT”) systems that support the recognition of sales
its Chief Executive Officer and Chief Financial Officer, carried and cost of sales, ineffective business process controls
out an evaluation of the effectiveness of the design and (automated and manual IT-dependent) due to the dependency
operation of the Company’s disclosure controls and procedures on such ITGCs, and other ineffective business process controls
(as defined in Exchange Act Rule 13a-15(e)) as of December supporting the recognition of sales and cost of sales. As of
31, 2023. Based upon that evaluation, the Company’s Chief December 31, 2023, this Canadian subsidiary represented 3%
Executive Officer and Chief Financial Officer concluded that, as of the Company’s total assets and 6% of the Company’s sales
of December 31, 2023 and as a result of the material weakness, for the year then ended.
affecting sales and cost of sales in one of the Company’s
Canadian subsidiaries and described below, the Company’s This material weakness did not result in any material
disclosure controls and procedures were not effective. misstatements in the consolidated financial statements.
However, due to the existence of the material weakness, a
Management’s report on internal control over financial reporting reasonable possibility exists that material misstatements in the
Management is responsible for establishing and maintaining Company’s financial statements would not have been prevented
adequate internal control over financial reporting as defined in or detected on a timely basis.
Rule 13a-15(f) of the Exchange Act. Internal control over
Based on this assessment, management concluded that, as a
financial reporting is a process designed to provide reasonable
result of the material weakness described above, ArcelorMittal’s
assurance regarding the reliability of financial reporting and the
internal control over financial reporting was not effective as of
preparation of financial statements for external purposes in
December 31, 2023.
accordance with generally accepted accounting principles.
Ernst & Young S.A., the Company’s independent registered
Because of its inherent limitations, internal control over financial
public accounting firm that audited the consolidated financial
reporting may not prevent or detect misstatements. Also,
statements for the year ended December 31, 2023, has issued
projections of any evaluation of effectiveness to future periods
an adverse opinion on the effectiveness of the Company’s
are subject to the risk that controls may become inadequate
internal control over financial reporting as of December 31,
because of changes in conditions, or that the degree of
2023.
compliance with the policies and procedures may deteriorate.
Remediation plan
Management assessed the effectiveness of internal control over
Management and the Company’s Board of Directors are
financial reporting as of December 31, 2023 based upon the
committed to maintaining a strong internal control environment.
framework in Internal Control—Integrated Framework (2013)
Management, with the oversight of the Audit & Risk Committee
issued by the Committee of Sponsoring Organizations of the
of the Board of Directors, evaluated the material weakness
Treadway Commission (“COSO”). Management’s assessment of
identified as of December 31, 2023, and is implementing a
the effectiveness of internal controls over financial reporting
remediation plan to address the material weakness resulting
excludes the evaluation of the internal controls over financial
from internal control deficiencies at one of the Company's
reporting for ArcelorMittal Pecém, which was acquired on March
Canadian subsidiaries and to enhance the Company’s control
9, 2023. As of December 31, 2023, ArcelorMittal Pecém
environment.
represented 3% of the Company’s total assets and 2% of the
Company’s sales. The transaction is not expected to materially The remediation plan will include enhanced identification of IT
affect ArcelorMittal’s internal control over financial reporting. The applications relevant to internal control over financial reporting,
Company expects its internal control system to be fully appropriate implementation and operation of ITGCs, continued
implemented at ArcelorMittal Pecém during 2024 and to be training of Company personnel and clear communication of
evaluated by management for effectiveness at that time. control responsibilities.

A material weakness is a deficiency, or a combination of Changes in Internal Control over Financial Reporting
deficiencies, in internal control over financial reporting, such that Except as noted in the preceding paragraphs, there have been
there is a reasonable possibility that a material misstatement of no changes in the Company’s internal control over financial
the Company's financial statements will not be prevented or reporting that occurred during the year ended December 31,
detected on a timely basis. Management has identified a 2023 that have materially affected or are reasonably likely to
material weakness in internal control over financial reporting as materially affect the Company’s internal control over financial
a result of control deficiencies at one of the Company’s reporting.
Canadian subsidiaries, with respect to information technology
general controls (“ITGCs”) in the areas of user access and
program change management over certain information
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Glossary - definitions, terminology and principal subsidiaries

Definitions and terminology

Unless indicated otherwise, or the context otherwise requires, references herein to “ArcelorMittal”, “we”, “us”, “our”, “ArcelorMittal
Group”, “Group” and the “Company” or similar terms are to ArcelorMittal S.A. consolidated with its subsidiaries. References to
“ArcelorMittal S.A.”, “ArcelorMittal parent” or “parent of ArcelorMittal” are to ArcelorMittal S.A., formerly known as Mittal Steel Company
N.V. (“Mittal Steel”), having its registered office at 24-26, Boulevard d’Avranches, L-1160 Luxembourg, Grand Duchy of Luxembourg.
ArcelorMittal’s principal operating subsidiaries, categorized by reporting segment and location, are listed below.

For the purposes of this annual report, the names of the following ArcelorMittal subsidiaries as abbreviated below are used where
applicable.

Name of Subsidiary Abbreviation Country

NAFTA
ArcelorMittal Dofasco G.P. ArcelorMittal Dofasco Canada
ArcelorMittal México S.A. de C.V. ArcelorMittal Mexico Mexico
ArcelorMittal Long Products Canada G.P. ArcelorMittal Long Products Canada Canada
ArcelorMittal Texas HBI LLC ArcelorMittal Texas HBI United States of America
Brazil and neighboring countries ("Brazil")
ArcelorMittal Brasil S.A. ArcelorMittal Brasil Brazil
Acindar Industria Argentina de Aceros S.A. Acindar Argentina
ArcelorMittal Pecém S.A.1 ArcelorMittal Pecém Brazil

Europe
ArcelorMittal France S.A.S. ArcelorMittal France France
ArcelorMittal Belgium N.V. ArcelorMittal Belgium Belgium
ArcelorMittal España S.A. ArcelorMittal España Spain
ArcelorMittal Flat Carbon Europe S.A. AMFCE Luxembourg
ArcelorMittal Poland S.A. ArcelorMittal Poland Poland
ArcelorMittal Eisenhüttenstadt GmbH ArcelorMittal Eisenhüttenstadt Germany
ArcelorMittal Bremen GmbH ArcelorMittal Bremen Germany
ArcelorMittal Méditerranée S.A.S. ArcelorMittal Méditerranée France
ArcelorMittal Belval & Differdange S.A. ArcelorMittal Belval & Differdange Luxembourg
ArcelorMittal Hamburg GmbH ArcelorMittal Hamburg Germany
ArcelorMittal Duisburg GmbH ArcelorMittal Duisburg Germany
ArcelorMittal International Luxembourg S.A. ArcelorMittal International Luxembourg Luxembourg

Africa and Commonwealth of Independent States ("ACIS")

ArcelorMittal South Africa Ltd. ArcelorMittal South Africa South Africa
JSC ArcelorMittal Temirtau2 ArcelorMittal Temirtau Kazakhstan
PJSC ArcelorMittal Kryvyi Rih ArcelorMittal Kryvyi Rih Ukraine

Mining
ArcelorMittal Mining Canada G.P. and ArcelorMittal Infrastructure Canada ArcelorMittal Mines and Infrastructure Canada Canada
G.P. ("AMMC")
ArcelorMittal Liberia Ltd. ArcelorMittal Liberia Liberia

1. Acquisition during the year. For more details see section - 'Key transactions and events in 2023' above and note 2.2.4 to the consolidated financial statements.
2. On December 7, 2023, the Company completed the sale of ArcelorMittal Temirtau, its Kazakh steel and mining operation. See - " Key transactions and events in 2023" and
note 2.3 to the consolidated financial statements.

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 Management report

In addition, unless indicated otherwise, or the context otherwise requires, references in this annual report to abbreviations or terms
shown below have the following definitions:
ARS Argentine Peso, the official currency of Argentina INR Indian rupee, the official currency of India

Articles of the amended and restated articles of association of Iron pellets agglomerated ultra-fine iron ore particles of a size
Association ArcelorMittal, dated April 28, 2023. and quality suitable for use in steel-making
processes
AUD$ or AUD Australian dollars, the official currency of Australia Kilometers measures of distance are stated in kilometers,
each of which equals approximately 0.62 miles, or
1000 in meters, each of which equals
approximately 3.28 feet
Brownfield project the expansion of an existing operation KZT the Kazakhstani tenge, the official currency of
Kazakhstan
C$ or CAD Canadian dollars, the official currency of Canada Metallurgical coal a broader term than coking coal that includes all
coals used in steelmaking, such as coal used for
the pulverized coal injection (“PCI”) process
Executive Office the Executive Chairman, Mr. Lakshmi N. Mittal and PLN Polish złoty, the official currency of Poland
Chief Executive Officer, Mr. Aditya Mittal
CIS the countries of the Commonwealth of Independent Production capacity the annual production capacity of plant and
States equipment based on existing technical parameters
as estimated by management
CNY Chinese yuan, the official currency of China Ps or MXN the Mexican peso, the official currency of the
United Mexican States
Coking coal coal that, by virtue of its coking properties, is used in Real, reais or R$ Brazilian reais, the official currency of Brazil
the manufacture of coke, which is used in the
steelmaking process
Crude steel the first solid steel product upon solidification of ROM run of mine - mined iron ore or coal to be fed to a
liquid steel, including ingots from conventional mills preparation and/or concentration process
and semis (e.g., slab, billet and blooms) from
continuous casters
Downstream finishing operations: flat products - the process after Sales include shipping and handling fees and costs billed
the production of hot-rolled coil/plates, and long to a customer in a sales transaction
products - the process after the production of
blooms/billets (including production of bars, wire
rods, SBQ, etc.)
DMTU or dmtu dry metric tonne unit SBQ special bar quality steel, a high-quality long
product
DRI direct reduced iron, a metallic iron formed by Significant a trust (HSBC Trustee (C.I.) Limited, as trustee), of
removing oxygen from iron ore without the formation Shareholder which Mr. Lakshmi N. Mittal, Mrs. Usha Mittal and
of, or passage through, a smelting phase. DRI can their children are the beneficiaries
be used as feedstock for steel production
Energy coal coal used as a fuel source in electrical power UAH Ukrainian hryvnia, the official currency of Ukraine
generation, cement manufacture and various
industrial applications. Energy coal may also be
referred to as steam or thermal coal
Euro, euros, EUR or the official currency of the European Union (“EU”) US$, $, dollars, United States dollar, the official currency of the
€ member states participating in the European USD or U.S. dollar United States
Monetary Union
Sinter a metallic input used in the blast furnace steel- Upstream operations that precede downstream steel-making,
making process, which aggregates fines, binder and coking coal, coke, sinter, DRI, blast furnace, basic
other materials into a coherent mass by heating oxygen furnace (“BOF”), electric arc furnace
without melting (“EAF”), casters & hot rolling/plate mill
Spanish Stock the stock exchanges of Madrid, Barcelona, Bilbao Wet recoverable a quantity of iron ore or coal recovered after the
Exchanges and Valencia material from the mine has gone through a
preparation and/or concentration process
excluding drying
Steel products finished and semi-finished steel products, and ZAR South African rand, the official currency of the
exclude raw materials (including those described Republic of South Africa
under “upstream” below), direct reduced iron
(“DRI”), hot metal, coke, etc.
Tons, net tons or ST short tons are used in measurements involving steel Metric Tonnes or metric tonnes and are used in measurements
products as well as crude steel, iron ore, iron ore MT involving steel products, as well as crude steel,
pellets, DRI, hot metal, coke, coal, pig iron and iron ore, iron ore pellets, DRI, hot metal, coke,
scrap (a short ton is equal to 907.2 kilograms or coal, pig iron and scrap (a metric tonne is equal to
1,000 kilograms or 2,204.62 pounds)
2,000 pounds)

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 Management report

Executive Officers those executives of the Company who are Probable mineral is the economically mineable part of an indicated
supporting the Executive Office and jointly with the reserve and, in some cases, a measured mineral resource.
Executive Office represent the senior management
of the Company
EAF Electric arc furnaces are used to produce steel from Mineral resource is a concentration or occurrence of material of
scrap melted using electricity, in contrast to the cast economic interest in or on the Earth's crust in such
iron sector (blast furnace – converter) where it is form, grade or quality, and quantity that there are
produced from iron ore. reasonable prospects for economic extraction. A
mineral resource is a reasonable estimate of
mineralization, taking into account relevant factors
such as cut-off grade, likely mining dimensions,
location or continuity, that, with the assumed and
justifiable technical and economic conditions, is
likely to, in whole or in part, become economically
extractable. It is not merely an inventory of all
mineralization drilled or sampled.
GMB the Group Management Board, the former senior Measured mineral is that part of a mineral resource for which quantity
management body which was replaced by the CEO resource and grade or quality are estimated on the basis of
Office subsequently renamed Executive Office. The conclusive geological evidence and sampling. The
Executive Office, supported by nine Executive level of geological certainty associated with a
Officers, makes up the Company’s senior measured mineral resource is sufficient to allow a
management qualified person to apply modifying factors, in
sufficient detail to support detailed mine planning
and final evaluation of the economic viability of the
deposit. Because a measured mineral resource
has a higher level of confidence than the level of
confidence of either an indicated mineral resource
or an inferred mineral resource, a measured
mineral resource may be converted to a proven
mineral reserve or to a probable mineral reserve.
Greenfield project the development of a new project Indicated mineral is that part of a mineral resource for which quantity
resource and grade or quality are estimated on the basis of
adequate geological evidence and sampling. The
level of geological certainty associated with an
indicated mineral resource is sufficient to allow a
qualified person to apply modifying factors in
sufficient detail to support mine planning and
evaluation of the economic viability of the deposit.
Because an indicated mineral resource has a
lower level of confidence than the level of
confidence of a measured mineral resource, an
indicated mineral resource may only be converted
to a probable mineral reserve.
Green steel steel products subject to auditor verified certification Inferred mineral is that part of a mineral resource for which quantity
of the CO2 savings achieved resource and grade or quality are estimated on the basis of
limited geological evidence and sampling. The
level of geological uncertainty associated with an
inferred mineral resource is too high to apply
relevant technical and economic factors likely to
influence the prospects of economic extraction in a
manner useful for evaluation of economic viability.
Because an inferred mineral resource has the
lowest level of geological confidence of all mineral
resources, which prevents the application of the
modifying factors in a manner useful for evaluation
of economic viability, an inferred mineral resource
may not be considered when assessing the
economic viability of a mining project, and may not
be converted to a mineral reserve.
Mineral reserve is an estimate of tonnage and grade or quality of
indicated and measured mineral resources that, in
the opinion of the qualified person, can be the basis
of an economically viable project. More specifically,
it is the economically mineable part of a measured
or indicated mineral resource, which includes
diluting materials and allowances for losses that
may occur when the material is mined or extracted.
Proven mineral is the economically mineable part of a measured
reserve mineral resource and can only result from
conversion of a measured mineral resource.

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 Management report

Chief Executive Officer and Chief Financial Officer’s responsibility statement

We confirm, to the best of our knowledge, that:

1. the consolidated financial statements of ArcelorMittal presented in this Annual Report and prepared in conformity with International Financial Reporting Standards as issued
by the International Accounting Standards Board and as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position, profit or loss of
ArcelorMittal and the undertakings included within the consolidation taken as a whole; and

2. the management report includes a fair review of the development and performance of the business and position of ArcelorMittal and undertakings included within the
consolidation taken as a whole, together with a description of the principal risks and uncertainties they face.

Chief Executive Officer Chief Financial Officer

Mr. Aditya Mittal Mr. Genuino Christino

February 28, 2024 February 28, 2024

244
 Consolidated financial statements

ArcelorMittal and Subsidiaries

Consolidated Statements of Operations
(millions of U.S. dollar, except share and per share data)

Year ended December 31,

Notes 2023 2022 2021
Sales 4.1 and 12.1 68,275 79,844 76,571
(including 8,825, 9,744 and 10,519 of sales to related parties for 2023, 2022 and
2021, respectively)
Cost of sales 4.2 and 12.2 63,538 67,309 57,337

(including 2,049, 2,300 and 1,873 of purchases from related parties for 2023, 2022
and 2021, respectively)
Gross margin 4,737 12,535 19,234
Selling, general and administrative expenses 2,397 2,263 2,258
Operating income 2,340 10,272 16,976
Income from investments in associates, joint ventures and other investments 2.6 1,184 1,317 2,204
Impairment of investments in associates, joint ventures and other investments 2.4.4 and 2.6 (1,405) — —
Financing costs - net 6.2 (859) (334) (1,155)
Income before taxes 1,260 11,255 18,025
Income tax expense 10.1 238 1,717 2,460
Net income (including non-controlling interests) 1,022 9,538 15,565
Net income attributable to equity holders of the parent 919 9,302 14,956
Net income attributable to non-controlling interests 103 236 609
Net income (including non-controlling interests) 1,022 9,538 15,565

Year ended December 31,

2023 2022 2021
Earnings per common share (in U.S. dollar)
Basic 1.09 10.21 13.53
Diluted 1.09 10.18 13.49
Weighted average common shares outstanding (in millions) 11.3
Basic 842 911 1,105
Diluted 845 914 1,108

The accompanying notes are an integral part of these consolidated financial statements.

246
 Consolidated financial statements

ArcelorMittal and Subsidiaries

Consolidated Statements of Other Comprehensive Income
(millions of U.S. dollar, except share and per share data)

Year ended December 31,

2023 2022 2021
Net income (including non-controlling interests) 1,022 9,538 15,565

Items that can be recycled to the consolidated statements of operations

Derivative financial instruments:
(Loss) gain arising during the period (461) 1,664 2,921
Reclassification adjustments for loss (gain) included in the consolidated
statements of operations and financial position (basis adjustments) 15 (1,899) (384)
(446) (235) 2,537
Exchange differences arising on translation of foreign operations:
Gain (loss) arising during the period 1,013 (1,630) (960)
Reclassification adjustments for loss included in the consolidated
statements of operations 1,469 — 105
2,482 (1,630) (855)

Share of other comprehensive income related to associates and joint ventures

(Loss) gain arising during the period (111) 46 509
Reclassification adjustments for gain included in the consolidated
statements of operations and financial position (basis adjustments) (479) (506) (266)
(590) (460) 243
Income tax benefit (expense) related to components of other comprehensive
income that can be recycled to the consolidated statements of operations 16 (112) (705)
Items that cannot be recycled to the consolidated statements of
operations
Investments in equity instruments at FVOCI:
(Loss) gain arising during the period (113) (27) 764
Share of other comprehensive gain (loss) related to associates and joint
ventures 5 (25) (2)
(108) (52) 762
Employee benefits - Recognized actuarial (loss) gain (103) 815 636
Share of other comprehensive income related to associates and joint
ventures 5 32 21
(98) 847 657
Income tax benefit (expense) related to components of other comprehensive
income (loss) that cannot be recycled to the consolidated statements of
operations 18 (193) (313)
Total other comprehensive income (loss) 1,274 (1,835) 2,326
Total other comprehensive income (loss) attributable to:
Equity holders of the parent 1,258 (1,785) 2,365
Non-controlling interests 16 (50) (39)
Total other comprehensive income (loss) 1,274 (1,835) 2,326
Total comprehensive income 2,296 7,703 17,891
Total comprehensive income attributable to:
Equity holders of the parent 2,177 7,517 17,321
Non-controlling interests 119 186 570
Total comprehensive income 2,296 7,703 17,891

The accompanying notes are an integral part of these consolidated financial statements.

247
 Consolidated financial statements

ArcelorMittal and Subsidiaries

Consolidated Statements of Financial Position
(millions of U.S. dollar, except share and per share data)

December 31,
Notes 2023 2022
ASSETS
Current assets:
Cash and cash equivalents 6.1.3 7,686 9,300
Restricted cash 6.1.3 97 114
Trade accounts receivable and other (including 372 and 677 from related parties at December 31,
2023 and 2022, respectively) 4.3 and 12.1 3,661 3,839
Inventories 4.4 18,759 20,087
Prepaid expenses and other current assets 4.5 3,037 3,778
Total current assets 33,240 37,118
Non-current assets:
Goodwill and intangible assets 5.1 and 5.3 5,102 4,903
Property, plant and equipment and biological assets 5.2, 5.3 and 7 33,656 30,167
Investments in associates and joint ventures 2.4 10,078 10,765
Other investments 2.5 513 1,119
Deferred tax assets 10.4 9,469 8,554
Other assets 4.6 1,859 1,921
Total non-current assets 60,677 57,429
Total assets 93,917 94,547
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt 6.1.2.1 and 7 2,312 2,583
Trade accounts payable and other (including 360 and 366 to related parties at December 31, 2023
and 2022, respectively) 4.7 and 12.2 13,605 13,532
Short-term provisions 9.1 588 1,101
Accrued expenses and other liabilities 4.8 4,967 4,864
Income tax liabilities 297 318
Total current liabilities 21,769 22,398
Non-current liabilities:
Long-term debt, net of current portion 6.1.2.2 and 7 8,369 9,067
Deferred tax liabilities 10.4 2,432 2,666
Deferred employee benefits 8.2 2,741 2,606
Long-term provisions 9.1 1,477 1,306
Other long-term obligations 9.2 1,061 914
Total non-current liabilities 16,080 16,559
Total liabilities 37,849 38,957

Contingencies and commitments 9.3 and 9.4

Equity: 11

Common shares (no par value, 1,111,418,599 and 1,136,418,599 shares authorized, 852,809,772
and 877,809,772 shares issued, and 819,271,756 and 805,337,929 shares outstanding at
December 31, 2023 and 2022, respectively) 303 312
Treasury shares (33,538,016 and 72,471,843 common shares at December 31, 2023 and 2022,
respectively, at cost) (849) (1,895)
Additional paid-in capital 27,185 28,651
Mandatorily convertible notes 11.2 — 509
Retained earnings 46,264 45,442
Reserves (18,942) (19,867)
Equity attributable to the equity holders of the parent 53,961 53,152
Non-controlling interests 2,107 2,438
Total equity 56,068 55,590
Total liabilities and equity 93,917 94,547
The accompanying notes are an integral part of these consolidated financial statements.

248
 Consolidated financial statements

ArcelorMittal and Subsidiaries

Consolidated Statements of Changes in Equity
(millions of U.S. dollar, except share and per share data)

Reserves
Items that can be recycled to Items that cannot be recycled to
the Consolidated Statements the Consolidated Statements of
of Operations Operations
Unrealized Unrealized
Gains (Losses) Gains (Losses) Equity
Foreign on Derivative on Investments attributable
Mandatorily Additional Currency Financial in Equity Recognized to the equity Non-
Share Treasury Convertible Paid-in Retained Translation Instruments Instruments at actuarial holders of controlling Total
Shares1 Capital Shares Notes Capital Earnings Adjustments relating to CFH FVOCI (losses) gains the parent interests Equity
Balance at December 31, 2020 1,081 393 (538) 840 35,247 22,097 (17,053) 229 583 (3,518) 38,280 1,957 40,237
Net income (including non-controlling interests) — — — — — 14,956 — — — — 14,956 609 15,565
Other comprehensive income (loss) — — — — — — (1,191) 2,461 594 501 2,365 (39) 2,326
Total comprehensive income (loss) — — — — — 14,956 (1,191) 2,461 594 501 17,321 570 17,891
Cancellation of shares (note 11.1) — (43) 3,493 — (3,450) — — — — — — — —
Recognition of share-based payments (note 8.3) 1 — 29 — 6 — — — — — 35 — 35
Mandatorily convertible notes (note 11.2) — — — (331) — (589) — — — — (920) — (920)

Share buyback (note 11.1) (171) — (5,170) — — — — — — — (5,170) — (5,170)

Dividend (notes 11.4 and 11.5) — — — — — (312) — — — — (312) (289) (601)

Put option NSI (note 11.5.2) — — — — — (119) — — — — (119) — (119)

Divestment of Cleveland-Cliffs shares (note 2.5) — — — — — 678 — (678) — — — —
Other movements — — — — — (9) — — — — (9) — (9)
Balance at December 31, 2021 911 350 (2,186) 509 31,803 36,702 (18,244) 2,690 499 (3,017) 49,106 2,238 51,344
Net income (including non-controlling interests) — — — — — 9,302 — — — — 9,302 236 9,538
Other comprehensive income (loss) — — — — — — (2,575) 215 (52) 627 (1,785) (50) (1,835)
Total comprehensive income (loss) — — — — — 9,302 (2,575) 215 (52) 627 7,517 186 7,703
Cancellation of shares (note 11.1) — (38) 3,201 — (3,163) — — — — — — — —
Recognition of share-based payments (note 8.3) 1 — 27 — 11 — — — — — 38 — 38
Share buyback (note 11.1) (107) — (2,937) — — — — — — — (2,937) — (2,937)
Dividend (notes 11.4 and 11.5) — — — — — (332) — — — — (332) (304) (636)
Put option ArcelorMittal Texas HBI (note 2.2.4) — — — — — (177) — — — — (177) — (177)
Non-controlling interests relating to acquisitions (note 2.2.4) — — — — — — — — — — — 233 233
Capital increase ArcelorMittal Liberia (note 11.5.1) — — — — — (45) — — — — (45) 45 —
Other movements — — — — — (8) — — (10) — (18) 40 22
Balance at December 31, 2022 805 312 (1,895) 509 28,651 45,442 (20,819) 2,905 437 (2,390) 53,152 2,438 55,590
Net income (including non-controlling interests) — — — — — 919 — — — — 919 103 1,022
Other comprehensive income (loss) — — — — — — 2,378 (927) (108) (85) 1,258 16 1,274
Total comprehensive income (loss) — — — — — 919 2,378 (927) (108) (85) 2,177 119 2,296
Cancellation of shares (note 11.1) — (9) 664 — (655) — — — — — — — —
Conversion of mandatorily convertible notes (note 11.2) 57 — 1,534 (509) (794) — — — — — 231 — 231
Recognition of share-based payments (note 8.3) 2 — 56 — (17) — — — — — 39 — 39
Share buyback (note 11.1) (45) — (1,208) — — — — — — — (1,208) — (1,208)
Dividend (notes 11.4 and 11.5) — — — — — (369) — — — — (369) (151) (520)
Disposal of Erdemir shares (note 2.5) — — — — — 333 — — (333) — — — —
Early redemption of mandatory convertible bonds (note 11.2) — — — — — (24) — — — — (24) (291) (315)
Mandatorily convertible bond extension (note 11.2) — — — — — — — — — — — (32) (32)
Capital increase ArcelorMittal Liberia (note 11.5.1) — — — — — (15) — — — — (15) 15 —
Other movements — — — — — (22) — — — — (22) 9 (13)
Balance at December 31, 2023 819 303 (849) — 27,185 46,264 (18,441) 1,978 (4) (2,475) 53,961 2,107 56,068

1. Amounts are in millions of shares (treasury shares are excluded).

The accompanying notes are an integral part of these consolidated financial statements.
249
 Consolidated financial statements

ArcelorMittal and Subsidiaries

Consolidated Statements of Cash Flows
(millions of U.S. dollar, except share and per share data)

Year ended December 31,

Notes 2023 2022 2021
Operating activities:
Net income (including non-controlling interests) 1,022 9,538 15,565
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization 5.1 and 5.2 2,675 2,580 2,523
Net impairment (reversal) charges 5.3 1,038 1,026 (218)
Bargain purchase gain 2.2.4 — (100) —
Interest expense 6.2 715 401 357
Interest income 6.2 (570) (188) (79)
Income tax expense 10.1 238 1,717 2,460
Net loss (gain) on disposal of subsidiaries 2.3 1,469 — (104)
Income from investments in associates, joint ventures and other investments 2.6 (1,184) (1,317) (2,204)
Impairment on investments in associates, joint ventures and other investments 2.6 1,405 — —
Provision on pensions and other post-employment benefits 8.2 249 176 147
Change in fair value adjustment on call option on mandatory convertible bonds 6.2 — 15 44
Unrealized foreign exchange effects 409 (82) (154)
Write-downs of inventories to net realizable value, provisions and other non-cash operating
expenses net 4.4 (400) 399 1,313
Changes in assets and liabilities that provided (required) cash, net of acquisitions and disposals:
Trade accounts receivable and other 4.1 307 1,133 (2,535)
Inventories 4.4 1,568 (2,062) (8,654)
Trade accounts payable and other 4.7 (271) (294) 4,780
VAT and other amounts (paid) received to/from public authorities 9 (410) (123)
Other working capital and provisions movements 110 608 (672)
Interest paid (788) (440) (479)
Interest received 553 178 73
Income taxes paid (977) (2,940) (2,128)
Dividends received from associates, joint ventures and other investments 316 493 261
Cash contributions to plan assets and benefits paid for pensions and other post-employment benefits 8.2 (248) (228) (268)
Net cash provided by operating activities 7,645 10,203 9,905
Investing activities:
Purchase of property, plant and equipment and intangibles (4,613) (3,468) (3,008)
Disposals of net assets of subsidiaries, net of cash disposed of 24, nil and 4 in 2023, 2022 and
2021, respectively 2.3 254 — (4)
Acquisitions of net assets of subsidiaries, net of cash acquired of 4, 39 and 10 in 2023, 2022
and 2021, respectively 2.2.4 (2,524) (939) (25)
Disposals of property, plant and equipment and intangibles 5.1 and 5.2 718 95 105
Acquisition of associates and joint ventures 2.4 (73) — —
Lease installments and capital expenditure refund relating to ArcelorMittal Italia acquisition — — (14)
Cash collateral for the TSR receivables retained in ArcelorMittal USA after disposal 6.1.3 — — 260
Disposal of common and preferred Cleveland-Cliffs shares 2.5 — — 2,680
(Acquisitions) disposals of financial assets 2.5 560 (32) (80)
Other investing activities net (170) (139) (254)
Net cash used in investing activities (5,848) (4,483) (340)
Financing activities:
Payments from mandatorily convertible subordinated notes/ mandatorily convertible bonds 11.2 (340) — (1,196)
Proceeds from short-term debt 6.1.3 218 434 287
Proceeds from long-term debt 6.1.3 134 3,893 147
Payments of short-term debt 6.1.3 (1,670) (1,044) (1,664)
Payments of long-term debt 6.1.3 (16) — (2,332)
Share buyback 11.1 (1,208) (2,937) (5,170)
Dividends paid (includes 162, 331 and 260 of dividends paid to non-controlling shareholders in
2023, 2022 and 2021, respectively) (531) (663) (572)
Repayment of cash pooling liability to Acciaierie d'Italia 2.3 — — (199)
Payment of principal portion of lease liabilities and other financing activities 6.1.3 (253) (160) (199)
Net cash used in financing activities (3,666) (477) (10,898)
Net (decrease) increase in cash and cash equivalents (1,869) 5,243 (1,333)
Effect of exchange rate changes on cash 255 (158) (55)
Cash and cash equivalents:
At the beginning of the year 9,300 4,215 5,600
Reclassification of the period-end cash and cash equivalents from held for sale 2.3 — — 3
At the end of the year 7,686 9,300 4,215

The accompanying notes are an integral part of these consolidated financial statements.

250
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

SUMMARY OF NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1: ACCOUNTING PRINCIPLES

1.1 Basis of presentation
1.2 Climate change disclosures
1.3 Use of judgment and estimates
1.4 Accounting standards applied
NOTE 2: SCOPE OF CONSOLIDATION
2.1 Basis of consolidation
2.2 Investments in subsidiaries
2.3 Divestments and assets held for sale
2.4 Investments in associates and joint arrangements
2.5 Other investments
2.6 Income (loss) from investments in associates, joint ventures and other investments
NOTE 3: SEGMENT REPORTING
3.1 Reportable segments
3.2 Geographical information
3.3 Sales by type of products
3.4 Disaggregated revenue
NOTE 4: OPERATING DATA
4.1 Revenue
4.2 Cost of sales
4.3 Trade accounts receivable and other
4.4 Inventories
4.5 Prepaid expenses and other current assets
4.6 Other assets
4.7 Trade accounts payable and other
4.8 Accrued expenses and other liabilities
NOTE 5: GOODWILL, INTANGIBLE AND TANGIBLE ASSETS
5.1 Goodwill and intangible assets
5.2 Property, plant and equipment and biological assets
5.3 Impairment of intangible assets, including goodwill, and tangible assets
NOTE 6: FINANCING AND FINANCIAL INSTRUMENTS
6.1 Financial assets and liabilities
6.2 Financing costs - net
6.3 Risk management policy
NOTE 7: LEASES
NOTE 8: PERSONNEL EXPENSES AND DEFERRED EMPLOYEE BENEFITS
8.1 Employees and key management personnel
8.2 Deferred employee benefits
8.3 Share-based payments
NOTE 9: PROVISIONS, CONTINGENCIES AND COMMITMENTS
9.1 Provisions
9.2 Other long-term obligations
9.3 Contingent liabilities
9.4 Commitments

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NOTE 10: INCOME TAXES

10.1 Income tax expense
10.2 Income tax recorded directly in equity and/or other comprehensive income
10.3 Uncertain tax positions
10.4 Deferred tax assets and liabilities
10.5 Tax losses, tax credits and other tax benefits carried forward
NOTE 11: EQUITY
11.1 Share details
11.2 Equity instruments and hybrid instruments
11.3 Earnings per common share
11.4 Dividends
11.5 Non-controlling interests
NOTE 12: RELATED PARTIES
12.1 Sales and trade receivables
12.2 Purchases and trade payables
12.3 Other transactions with related parties
NOTE 13: PRINCIPAL ACCOUNTANT FEES AND SERVICES

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carbon economy and has considered such impacts when

preparing its consolidated financial statements. ArcelorMittal's
NOTE 1: ACCOUNTING PRINCIPLES decarbonization strategy aims to achieve carbon neutrality by
ArcelorMittal (“ArcelorMittal” or the “Company”), together with its 2050 in line with the United Nations' Paris agreement. By 2030,
subsidiaries, owns and operates steel manufacturing and mining the Company is targeting a 25% reduction in its CO2 emissions
facilities in Europe, North and South America, Asia and Africa. intensity across its global steel and mining operations, with an
Collectively, these subsidiaries and facilities are referred to in increased European target of 35%. Both targets cover both
the consolidated financial statements as the “operating scope 1 and 2. The Company's decarbonization roadmap is
subsidiaries”. These consolidated financial statements were broken down by country, plant and project to achieve the
authorized for issuance on February 28, 2024 by the Company’s Company's objectives and features five sets of actions and
Board of Directors. initiatives that act as stepping-stones toward the goal of
achieving net-zero carbon emissions by 2050:
1.1 Basis of presentation
The consolidated financial statements have been prepared on a • Transforming the Company's steelmaking assets: this
historical cost basis, except for equity instruments and certain involves switching where applicable from the BF-BOF
trade receivables at fair value through other comprehensive ("Blast Furnace-Basic Oxygen Furnace") to low-carbon
income ("FVOCI"), financial assets at fair value through profit or steelmaking technologies through the DRI ("Direct
loss ("FVTPL"), derivative financial instruments and biological Reduced Iron") and from iron ore preparation in the
assets, which are measured at fair value less cost to sell, sinter plant (using heat or pressure to compact a
inventories, which are measured at the lower of net realizable material) to the pellet plant (which compresses or
value or cost, and the financial statements of the Company’s moulds the iron material into the shape of a pellet).
Venezuelan tubular production facilities Industrias Unicon CA Ironmaking with pellets in the DRI is usually coupled
(“Unicon”) and the Company's Argentinian operation Acindar with an EAF ("Electric Arc Furnace"). To achieve its
Industria Argentina de Aceros S.A. ("Acindar"), for which 2030 global carbon emissions intensity reduction
hyperinflationary accounting is applied (see note 2.2.2). The target, ArcelorMittal has estimated the gross capital
consolidated financial statements have been prepared in cost required to be approximately 10 billion, with the
accordance with International Financial Reporting Standards expectation that public funding covers 50% of the total
(“IFRS”) as issued by the International Accounting Standards cost of decarbonization, addressing both capital
Board (“IASB”) and as adopted by the European Union and are expenditures and the higher operating expenditures.
presented in U.S. dollar with all amounts rounded to the nearest The Company lists below the main announced or
million, except for share and per share data. ongoing projects:

1.2 Climate change disclosures

The Company continues to develop its assessment of the
potential impacts of climate change and the transition to a low

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In October 2022, ArcelorMittal, broke ground on its decarbonization project (the governments of Canada and
Hamilton (Canada) Ontario having committed CAD$400 million and CAD$500 million, respectively, to the overall project cost) at the
ArcelorMittal Dofasco plant in Hamilton, Ontario, Canada, which is expected to contribute to a considerable
reduction of CO2 emissions. The project includes the construction of a 2.5 million tonnes DRI facility and one EAF.
ArcelorMittal is planning to invest €1 billion in the Company's plant in Gijón including the construction of a 2.3
million-tonne hydrogen DRI plant. This investment is expected to deliver a reduction in carbon emissions at the
Spanish operations of up to 50%. At a later stage, around 1 million tonnes per year of DRI would be supplied to
Gijón and Sestao
(Spain) Sestao to be used as feedstock for the plant’s two EAFs. On February 17, 2023, the European Commission
approved, under EU state aid rules, a €450 million Spanish measure to support ArcelorMittal España in
construction of the new DRI installation in Gijón. The Company is also planning to construct a new EAF for long
products.
ArcelorMittal already operates Europe’s only DRI-EAF plant in Hamburg, where the switch to using hydrogen
instead of natural gas in the iron ore reduction process is being prepared. The Company is planning to test the
Hamburg
(Germany) ability of hydrogen DRI on an industrial scale, as well as testing carbon-free DRI in the EAF steelmaking process.
The European Commission approved €55 million of funding support from the German Federal Government
towards the plant construction.
In Dunkirk, ArcelorMittal would build a 2.5 million tonnes per year DRI. This DRI will be coupled with an innovative
Dunkirk(France) technology electric furnace and complemented by an additional EAF. On July 20, 2023, the Company received the
European Commission’s approval of €850 million in state aid for the funding of this project.
ArcelorMittal is developing a project to build a large-scale industrial plant for the DRI based steelmaking at its site
Bremen and in Bremen, as well as EAFs in Bremen and Eisenhüttenstadt, following the announcement of the planned
Eisenhüttenstadt
(Germany) expansion of Germany’s hydrogen infrastructure and alongside its existing H2 Hamburg project. In February 2024,
the Company received the European Commission's approval of €1.3 billion in state aid.
ArcelorMittal Belgium is planning to build a 2.5 million-tonnes per year DRI plant and two EAFs at its Ghent site.
The DRI plant and EAF facility will operate alongside Ghent’s state-of-the-art blast furnace that is ready to take
Ghent (Belgium)
waste wood and plastic as a substitute for fossil carbon. On June 22, 2023 the Company received the European
Commission approval of €280 million in state aid for the funding of the project.

• Increasing the proportion of scrap used in the steelmaking

process: the Company can increase the use of low-quality carbon-rich waste gases from steelmaking and biologically
scrap in the BF-BOF steelmaking process by improving convert them into advanced ethanol through LanzaTech’s
steel scrap sorting and classification, installing scrap pre- biobased process. The facility not only reduces CO2
melting technology, and adjusting the steelmaking process emissions at the plant by 125,000 tonnes per year, but also
to accommodate scrap. In 2022 and 2023, the Company results in the production of 80 million liters of bio-ethanol
completed the acquisition of three specialist scrap metal per annum, which can be blended with traditional gasoline
recyclers as the Company continually seeks to enhance its as a low-carbon alternative fuel for the transport sector.
ability to source scrap steel (see note 2.2.4).
• Investing in clean electricity used in the steelmaking
• Transforming the energy used in the steelmaking process: process: The Company plans to look for more and varied
this is expected to involve shifting to one or a combination opportunities in the renewables sector to provide sufficient
of three alternatives: clean electricity (which could be in the access to clean energy at affordable prices, purchase
form of green hydrogen), carbon capture usage ("CCU") renewable energy certificates and make more use of direct
coupled with carbon capture storage ("CCS") to ensure no power purchase agreements with suppliers from
carbon is emitted, and use of circular carbon either through renewables projects. In March 2022, ArcelorMittal
natural or synthetic carbon cycles. In November 2023, announced that it had established a strategic partnership
industrial production of ethanol commenced at with Greenko Group, India’s leading energy transition
ArcelorMittal’s commercial flagship carbon capture and company, to develop a ‘round the clock’ renewable energy
utilization facility in Ghent, Belgium. The €200 million project with 975 MW of nominal capacity. The 0.6 billion
Steelanol facility is a first of its kind for the European steel project with commissioning expected by mid-2024 will
industry, deploying technology developed by leading carbon combine solar and wind power and be supported by
utilization company LanzaTech. This facility captures Greenko’s hydro pumped storage project, which helps to

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overcome the intermittent nature of wind and solar power assumptions in terms of green hydrogen cost, CCS or
generation. The project provides for 250 MW of introduction of climate-friendly policies. In some countries,
uninterrupted renewable power to be supplied annually to particularly in the EU and Canada, the Company sees sufficient
AMNS India (ArcelorMittal’s joint venture company in India) policy incentives to enable it to ‘Accelerate’ its decarbonization
resulting in over 20% of the electricity requirement at AMNS plans. Where these conditions do not yet exist, ArcelorMittal will
India’s Hazira plant coming from renewable sources, continue to make improvements to ‘Move’ but it is difficult to
reducing carbon emissions by approximately 1.5 million ‘Accelerate’ without becoming uncompetitive in that market
tonnes per year. In May 2023, ArcelorMittal formed a joint
venture with Casa dos Ventos, one of Brazil’s largest Considering the risks related to climate change and the
developers and producers of renewable energy projects, to Company's commitment established under the Paris agreement,
develop a 554 MW wind power project aiming to secure ArcelorMittal provides explicit information in the notes to these
and decarbonize a considerable proportion of the consolidated financial statements regarding how climate change
Company's wholly-owned subsidiary ArcelorMittal Brasil’s affects the Company's financial information. The Company
future electricity needs. presents below the references to the various notes where issues
associated with climate change are addressed:
• Offsetting residual emissions: For these residual emissions,
which today the Company estimates will be 5% - 10% of
today’s emissions, ArcelorMittal plans to buy high-quality
offsets or launch projects to generate high-quality carbon
credits that would not have happened without the
Company’s intervention.

ArcelorMittal's decarbonization strategy in each part of the world

where the Company operates is now based on the same

Topic Note Content

Judgments and estimates made in assessing the impact of climate change and the
Note 1.3 Use of judgment and transition to a low carbon economy: useful lives of property, plant and equipment,
Estimate and judgment estimates estimates of future cash flow projections for impairment of non-financial assets,
decommissioning costs
• Note 2.2.4 Acquisitions
• Note 2.4.1 Joint ventures Investments in renewable energy projects, scrap metal recycling businesses and
Sustainable investment • Note 2.5 Other investments breakthrough technologies through ArcelorMittal XCarb® Innovation Fund
• Note 5.2 Property, plant and
equipment and biological assets
Note 5.1 Goodwill and intangible Recognition and measurement of emission rights
assets
Note 5.2 Property, plant and Residual useful lives of certain assets, capital expenditures with respect to
Measurement of non- equipment and biological assets decarbonization strategy
financial assets
Note 5.3 Impairment of intangible
assets, including goodwill, and Inclusion of climate-related risks in the assumptions for impairment testing
tangible assets
Provisions Note 9.1 Provisions Recognition of emission obligations

Share-based payments Note 8.3 Share-based payments Description of equity incentive plans requiring achievement of specific climate-
related targets

may result in revised estimates, and actual results could differ

1.3 Use of judgment and estimates from those estimates.
The preparation of consolidated financial statements in
conformity with IFRS recognition and measurement principles The following summary provides further information about the
and, in particular, making the critical accounting judgments Company’s critical accounting policies under which significant
requires the use of estimates and assumptions that affect the judgments, estimates and assumptions are made. It should be
reported amounts of assets, liabilities, revenues and expenses. read in conjunction with the notes mentioned in the summary:
Management reviews its estimates on an ongoing basis using
Deferred tax assets (note 10.4): The Company assesses the
currently available information. Changes in facts and
recoverability of deferred tax assets based on future taxable
circumstances or obtaining new information or more experience
income projections, which are inherently uncertain and may be
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(millions of U.S. dollar, except share and per share data)

subject to changes over time. Judgment is required to assess Company performs an impairment test based, amongst others,
the impact of such changes on the measurement of these on an estimate of its share in the present value of the projected
assets and the time frame for their utilization. In addition, the future cash flows expected to be generated by operations of
Company applies judgment to recognize income tax liabilities associates and joint ventures and, similarly to impairment
when they are probable and can be reasonably estimated testing of tangible and intangible assets, including goodwill, the
depending on the interpretation, which may be uncertain, of estimates, judgments and assumptions applied for the value in
applicable tax laws and regulations. ArcelorMittal periodically use calculations relate primarily to growth rates, expected
reviews its estimates to reflect changes in facts and changes to average selling prices, shipments and direct costs.
circumstances. Assumptions for average selling prices and shipments are
based on historical experience and expectations of future
Provisions for pensions and other post-employment benefits changes in the market.
(note 8.2): Benefit obligations and plan assets can be subject to
significant volatility, in particular due to changes in market Business combinations (note 2.2.3): Assets acquired and
conditions and actuarial assumptions. Such assumptions differ liabilities assumed as part of a business combination are
by plan, take local conditions into account and include discount recorded at their acquisition-date fair values. Similarly,
rates, expected rates of compensation increases, health care consideration including consideration receivable and contingent
cost trend rates, mortality and retirement rates. They are consideration is measured at fair value. In connection with each
determined following a formal process involving the Company's of its acquisitions, the Company undertakes a process to identify
expertise and independent actuaries. Assumptions are reviewed all assets and liabilities acquired, including intangible assets.
annually and adjusted following actuarial and experience Determining the fair value of identifiable assets and liabilities
changes. requires the use of valuation techniques which may include
judgment and estimates and which may affect the allocation of
Provisions (note 9): Provisions, which result from legal or the amount of consideration paid to the assets and liabilities
constructive obligations arising as a result of past events, are acquired and goodwill or gain from a bargain purchase recorded
recognized based on the Company's, and in certain instances, as part of the business combination. Estimated fair values are
third-party's best estimate of costs when the obligation arises. based on information available at acquisition date and on
They are reviewed periodically to take into consideration expectations and assumptions that have been deemed
changes in laws and regulations and underlying facts and reasonable by management. There are several methods that
circumstances. can be used to determine the fair value of assets acquired and
liabilities assumed. The "income approach" is based on the
Impairment of tangible and intangible assets, including goodwill
forecast of the expected future cash flows adjusted to present
(note 5.3): In order to assess the recoverable amount of tangible
value by applying an appropriate discount rate that reflects the
and intangible assets at cash-generating unit ("CGU") level and
risk factors associated with the cash flow streams. Some of the
of goodwill at group of cash-generating unit ("GCGU") level, the
more significant estimates and assumptions inherent in the
Company mainly determines their value in use on the basis of
income method or other methods include the amount and timing
the present value of cash flow projections. The estimates,
of projected future cash flows; the discount rate selected to
judgments and assumptions applied for the value in use
measure the risks inherent in the future cash flows (weighted
calculations relate primarily to growth rates, expected changes
average cost of capital); the assessment of the asset's life cycle
to average selling prices, shipments and direct costs.
and the competitive trends impacting the asset, including
Assumptions for average selling prices and shipments are
consideration of any technical, legal, regulatory or economic
based on historical experience and expectations of future
barriers to entry. The "cost approach" estimates the value of an
changes in the market. When determining value in use,
asset based on the current cost to reproduce of replace the
management also applies judgement when assessing whether
asset. Replacement cost is determined based on market data
cash flows expected to arise to achieve sustainability and
subsequently adjusted for physical, functional and economic
decarbonization targets are deemed to maintain the same level
obsolescence. The most common purchase accounting
of economic benefits or whether they improve or enhance the
adjustments relate to the following assets and liabilities:
asset's performance (see also below judgments and estimates
made in assessing the impact of climate change and the • The fair value of identifiable intangible assets
transition to a low carbon economy). Discount rates are (generally patents, customer relationships, technology,
reviewed annually. brand or favorable contracts) is estimated based on the
above-mentioned income approach;
Impairment of associates and joint ventures (note 2.4.4.):
Whenever there is an indication of impairment related to
investments accounted for under the equity method, the
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• Property, plant and equipment is recorded at market characteristics, can be estimated with a level of confidence
value, or, if not available, depreciated replacement sufficient to allow the appropriate application of technical and
cost; economic parameters, to support mine planning and evaluation
of the economic viability of the deposit. The estimate is based
• The fair value of pension and other post-employment on detailed and reliable exploration sampling and testing
benefits is determined separately for each plan using information gathered through appropriate techniques from
actuarial assumptions valid as of the acquisition date locations such as outcrops, trenches, pits, workings and drill
relating to the population of employees involved and holes that are spaced closely enough for geological and grade
the fair value of plan assets. continuity to be reasonably assumed. An inferred mineral
resource is that part of a mineral resource for which quantity and
• Inventories are estimated based on expected selling
grade or quality can be estimated on the basis of geological
prices at the date of acquisition reduced by an estimate
evidence and limited sampling, and reasonably assumed but not
of selling expenses and a normal profit margin.
verified geological and grade continuity. The estimate is based
• Adjustments to deferred tax assets and liabilities of the on limited information and sampling gathered through
acquiree are recorded to reflect the deferred tax effects appropriate techniques from locations such as outcrops,
of the fair value adjustments relating to identifiable trenches, pits, workings and drill holes. Estimates of mineral
assets and liabilities other than goodwill. reserves and resources and the estimates of mine life have
been prepared by ArcelorMittal experienced engineers and
Determining the estimated residual useful lives of tangible and geologists and detailed independent verifications of the methods
intangible assets acquired requires judgement and certain and procedures are conducted on a regular basis by external
intangible assets may be considered to have indefinite useful consultants. Reserves and resources are updated annually and
lives. calculated using a reference price duly adjusted for quality, ore
content, logistics and other considerations. In order to estimate
Financial instruments (note 6.1.5) and financial amounts
reserves and resources, estimates are required for a range of
receivable (note 4.5 and 4.6): Certain of the Company's financial
geological, technical and economic factors, including quantities,
instruments are classified as Level 3 as they include
grades, production techniques, recovery rates, production costs,
unobservable inputs.
transport costs, commodity demand, commodity prices and
Mineral reserve and resource estimates (note 5.2): Proven iron exchange rates. Estimating the quantity and/or grade of
ore reserves are those quantities whose recoverability can be reserves and resources requires the size, shape and depth of
determined with reasonable certainty from a given date forward ore bodies to be determined by analyzing geological data such
and under existing government regulations, economic and as drilling samples. This process may require complex and
operating conditions; probable reserves have a lower degree of difficult geological judgments to interpret the data. Because the
assurance but high enough to assume continuity between points economic assumptions used to estimate reserves and resources
of observation. Mineral resource estimates constitute the part of change from period to period, and because additional geological
a mineral deposit that have the potential to be economically and data is generated during the course of operations, estimates of
legally extracted or produced at the time of the resource reserves and resources may change from period to period.
determination. The potential for economic viability is established
Judgments and estimates made in assessing the impact of
through qualitative evaluation of relevant technical and
climate change and the transition to a low carbon economy
economic factors likely to influence the prospect of economic
extraction. A measured mineral resource is that part of a mineral Assumptions in respect of climate change and the transition to a
resource for which quantity, grade or quality, densities, shape, low carbon economy may impact the Company’s significant
and physical characteristics are so well established that they judgements and key estimates and result in material changes to
can be estimated with confidence sufficient to allow the financial results and the carrying values of certain assets and
appropriate application of technical and economic parameters, liabilities in future reporting periods. The main judgements and
to support production planning and evaluation of the economic estimates made by ArcelorMittal when preparing the 2023
viability of the deposit. The estimate is based on detailed and consolidated financial statements related to the expected effects
reliable exploration, sampling and testing information gathered of climate change and the transition to a low carbon economy
through appropriate techniques from locations such as outcrops, are described below.
trenches, pits, workings and drill holes that are spaced closely
enough to confirm both geological and grade continuity. An • Property, plant and equipment: Considering the expected
indicated mineral resource is that part of a mineral resource for date of retirement of some assets in particular certain blast
which quantity, grade or quality, densities, shape and physical furnaces, basic oxygen furnaces, sinter plants and coke
plants following investments in low-carbon steelmaking
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technologies, the Company decreased estimates of residual 0.7 billion on the Company’s statement of financial position at
useful lives of such items of property, plant and equipment December 31, 2023 (0.6 billion at December 31, 2022). In 2023,
for its flat steel operations in the EU and in Canada. the Company’s Ukrainian operations (and in particular its Kryvyi
Rih steel plant) recorded 0.9 million of steel shipments (1.1
• Impairment of tangible and intangible assets, including million tonnes in 2022), generating 1.2 billion of sales (1.4 billion
goodwill: Value in use calculations relating to flat steel in 2022) including 0.5 billion of sales (0.4 billion in 2022) to
operations in the EU and in Canada, which apply the BF- customers located in Ukraine.
BOF route, include the impact of decarbonization at the
level of cash flow projections as decarbonization is Following the war outbreak on February 24, 2022, the Company
necessary to maintain the level of economic benefits idled its Ukrainian operations on March 3, 2022 but restarted
expected to arise from the assets in their current condition blast furnace No.6 (one of the three blast furnaces representing
considering the legal obligation of carbon neutrality for approximately 20% of ArcelorMittal's Kryvyi Rih ("AMKR") pig
these operations; accordingly the Company developed iron capacity) on April 11, 2022 to resume low levels of pig iron
assumptions in determining related capital expenditures production. Iron ore production was approximately at 55% of
which reflect announced commitments and initiatives in capacity during the first half of 2022. During the third quarter,
place, costs associated with operating the new technologies iron ore production was temporarily suspended due to weaker
which are expected to be deployed in the short to medium demand and logistic constraints but restarted in early October
term, commodity prices and carbon emission costs on the 2022 at approximately 25% level. During the first half of 2023,
basis of historical experience and expectations of future the Company continued to ramp up operations and has been
changes. This requires to assess the future development in operating two of three blast furnaces until end of May 2023
supply, technology change, production changes and other following the restart of blast furnace No.8 on April 14, 2023. On
important factors. For other operations, discount rates are June 6, 2023, following the destruction of the Nova Kakhovka
increased to include a risk premium relative to the future reservoir's dam, AMKR temporarily suspended steelmaking and
estimated decarbonization cost. Due to economic production of rolled products to reduce water consumption. As a
developments, uncertainties over the pace of transition to result, the Company shut down blast furnace No.6 slightly
low-emission technologies, political and environmental earlier than planned for a major planned repair but continued to
actions that will be taken to meet the carbon reduction operate blast furnace No.8. In July 2023, AMKR announced that
goals, regulatory changes and emissions activity arising it had completed the construction of a new pumping station and
from climate-related matters, the Company’s assumptions 5 kilometers pipeline to supply water to the city and to ensure
used in the recoverable amount calculations, such as full coverage of its production needs. AMKR is currently
capital expenditure, carbon emission costs, level of public operating its mining and steel facilities at 45% and 30%,
funding and other assumptions are inherently uncertain, respectively. ArcelorMittal continued to exercise control over its
which could result in significant changes to value in use Ukrainian operations and key production assets have not been
calculations in future periods and affect impairment seriously damaged at the date of this report. In addition, despite
assessments. the lower level of activity, none of the assets are held for sale or
were discontinued
• Decommissioning costs: Over the next ten years, the
retirement of certain above-mentioned assets in the context In the context of the annual impairment test of intangible
of the transition to low-carbon steelmaking infrastructures assets, including goodwill, and tangible assets, the Company
may lead to certain decommissioning costs. The Company revised its future cash flow projections and considering that
considered such costs in its value in use calculations but it there is significant uncertainty about the evolution of the
has not recognized decommissioning provisions related to geopolitical context in Ukraine and the timing and ability for the
decarbonization as the obligating event has not occurred Company to resume production to a normal level, which resulted
yet. Decommissioning cost estimates are based on the in a substantial increase in the discount rate, ArcelorMittal
known regulatory and external environment. These cost recognized in 2022 a 1,026 impairment loss of property, plant
estimates may change in the future including as a result of and equipment and intangibles (see note 5.3). In 2023, the
the transition to a lower carbon economy. Company revised its value in use calculation and timing
expectations regarding return to pre-war conditions. It applied
Situation in Ukraine and collateral consequences separate discount rates over the discrete projections period,
The Company's operations in Ukraine consist of a steel plant, including a higher country risk premium for the cash flow
which produced 1.0 million tonnes of steel in 2023 (1.2 million projections until the end of 2024 and a return to a pre-war
tonnes in 2022), and (captive) mines that produced 4.6 million country risk premium after 2024 and for the terminal value
tonnes of iron ore in 2023 (4.9 million tonnes in 2022); the calculation as value in use is sensitive to a difference in country
related property, plant and equipment had a carrying value of
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risk for different periods. It concluded that the recoverable

amount remains in excess of the carrying amount. Conversely, if
the ongoing conflict between Russia and Ukraine persists, it
could continue to have a material effect on the overall
macroeconomic environment potentially affecting steel and iron
ore demand and prices as well as energy costs. It could also
result in further reduced production, sales and income with
respect to the Company's Ukrainian operations thus increasing
the risk that the Company may need to record an additional
impairment charge with respect to such operations in the future.

The increased geopolitical risks induced by the war in Ukraine

have adversely impacted global macroeconomic conditions
leading to inflationary pressure, rising interest rates and energy
costs since early 2022. In 2023, while energy prices declined
and inflationary pressure started to dissipate, high interest rates
continued to constrain activity. As of October 1, 2023, when
goodwill was tested for impairment, discount rates applied for
value in use calculations included a higher risk-free rate as
compared to October 1, 2022. The Company sees signs of
improvement of apparent demand conditions as the destocking
phase reaches maturity and remains focused on executing its
strategic growth and decarbonization projects.

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1.4 Accounting standards applied the accounting for income taxes. As a mandatory temporary
exception to the accounting for deferred taxes arising from the
1.4.1 Adoption of new IFRS standards, amendments and implementation of the Pillar Two model rules, an entity does not
interpretations applicable from January 1, 2023 recognize and does not disclose information about deferred tax
assets and liabilities related to the OECD Pillar Two income
On January 1, 2023, the Company adopted IFRS 17 "Insurance
taxes. Also, in periods in which Pillar Two legislation is enacted
Contracts", which is designed to achieve the goal of a
or substantively enacted, but not yet in effect, an entity should
consistent, principle-based accounting for insurance contracts.
disclose known or reasonably estimable information that helps
IFRS 17 requires insurance liabilities to be measured at a
users of financial statements understand the entity’s exposure to
current fulfillment value and provides a more uniform
Pillar Two income taxes arising from that legislation. The
measurement and presentation approach for all insurance
Company adopted this amendment and accordingly applied this
contracts. IFRS 17 supersedes IFRS 4 "Insurance Contracts"
exception immediately upon issuance of the amendment and
and related interpretations. On June 25, 2020, the IASB issued
retrospectively as of January 1, 2023.
amendments to IFRS 17, including a deferral of the effective
date to periods beginning on or after January 1, 2023. IFRS 17 The adoption of the above-mentioned amendments did not have
should be applied retrospectively unless impracticable, with a material impact to the Company's consolidated financial
earlier adoption permitted if both IFRS 15 "Revenue from statements.
Contracts with Customers" and IFRS 9 "Financial Instruments"
have also been applied. On December 9, 2021, the IASB issued 1.4.2 New IFRS standards, amendments and interpretations
a narrow-scope amendment to the transition requirements of applicable from 2024 onward
IFRS 17 for entities that first apply IFRS 17 and IFRS 9 at the On January 23, 2020, the IASB issued narrow-scope
same time whereby an entity is permitted to present amendments to IAS 1 to clarify how to classify debt and other
comparative information about a financial asset as if the liabilities as current or non-current. The amendments aim to
classification and measurement requirements of IFRS 9 had promote consistency in applying the requirements by helping
been applied to that financial asset before. As the Company companies determine whether, in the statement of financial
does not issue insurance contracts and considering the limited position, debt and other liabilities with an uncertain settlement
extent of its reinsurance activities, the adoption of this standard date should be classified as current (due or potentially due to be
did not have a material impact to the Company's consolidated settled within one year) or non-current. The amendments
financial statements. include clarifying the classification requirements for debt a
company might settle by converting it into equity. On June 22,
In addition, on January 1, 2023, the Company adopted the 2021, the IASB postponed the effective date of the
following amendments: amendments. The amendments are effective for annual periods
beginning on or after January 1, 2024 and are to be applied
• Amendments to IAS 8. The amendments clarify the retrospectively, with early adoption permitted.
distinction between a change in accounting policies and a
change in accounting estimates. On October 31, 2022, the IASB has issued 'Non-current
Liabilities with Covenants (Amendments to IAS 1)' to clarify how
• Amendments to IAS 1 and IFRS Practice Statement 2. The conditions with which an entity must comply within twelve
amendments are intended to help preparers in deciding months after the reporting period affect the classification of a
which accounting policies to disclose in their financial liability. The amendments are effective for annual periods
statements and gives further clarity on the materiality beginning on or after January 1, 2024 and are to be applied
assessment of accounting policies. Changes in accounting retrospectively, with early adoption permitted.
policies are to be applied retrospectively while changes in
accounting estimates are to be applied prospectively. On September 22, 2022, the IASB issued amendments to IFRS
16 "Leases" with respect to the lease liability in a sale and
• Amendments to IAS 12 "Income Taxes" for deferred taxes leaseback transaction. The amendments require a seller-lessee
related to assets and liabilities arising from a single to subsequently measure lease liabilities arising from a
transaction. The amendments clarify how to account for leaseback in a way that it does not recognize any amount of the
deferred tax on transactions such as leases and gain or loss that relates to the right of use it retains. The new
decommissioning obligations. requirements do not prevent a seller-lessee from recognizing in
profit or loss any gain or loss relating to the partial or full
On May 23, 2023, the IASB issued 'International Tax Reform —
termination of a lease. The amendments are effective for annual
Pillar Two Model Rules (Amendments to IAS 12)' to respond to
periods beginning on or after January 1, 2024 with early
stakeholders’ concerns about the potential implications of the
imminent implementation of the OECD Pillar Two model rules on
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(millions of U.S. dollar, except share and per share data)

adoption permitted. The amendments are to be applied companies and joint arrangements. Subsidiaries are
retrospectively. consolidated from the date the Company obtains control
(ordinarily the date of acquisition) until the date control ceases.
The Company does not expect that the adoption of these The Company controls an entity when the Company is exposed
amendments will have a material impact to its consolidated to or has rights to variable returns from its involvement with the
financial statements. The Company does not plan to early adopt entity and has the ability to affect those returns through its
any amendments. power over the entity.

1.4.3 New IFRS standards, amendments and interpretations not Associates are those companies over which the Company has
yet endorsed by the European Union the ability to exercise significant influence on the financial and
On May 25, 2023, the IASB has published 'Supplier Finance operating policy decisions, which it does not control. Generally,
Arrangements (Amendments to IAS 7 and IFRS 7)' to add significant influence is presumed to exist when the Company
disclosure requirements, and ‘signposts’ within existing holds more than 20% of the voting rights. Joint arrangements,
disclosure requirements, which require entities to provide which include joint ventures and joint operations, are those over
qualitative and quantitative information about supplier finance whose activities the Company has joint control, typically under a
arrangements. In particular, entities will have to disclose in the contractual arrangement. In joint ventures, ArcelorMittal
notes information that enables users of financial statements to exercises joint control and has rights to the net assets of the
(i) assess how supplier finance arrangements affect an entity’s arrangement. The investment is accounted for under the equity
liabilities and cash flows and to (ii) understand the effect of method and therefore recognized at cost at the date of
supplier finance arrangements on an entity’s exposure to acquisition and subsequently adjusted for ArcelorMittal’s share
liquidity risk and how the entity might be affected if the in undistributed earnings or losses since acquisition, less any
arrangements were no longer available to it. The amendments impairment incurred. Any excess of the cost of the acquisition
to IAS 7 are effective for annual reporting periods beginning on over the Company’s share of the net fair value of the identifiable
or after January 1, 2024 (with earlier application permitted) and assets, liabilities, and contingent liabilities of the associate or
the amendments to IFRS 7 when it applies the amendments to joint venture recognized at the date of acquisition is considered
IAS 7. as goodwill. The goodwill, if any, is included in the carrying
amount of the investment and is evaluated for impairment as
On August 15, 2023, the IASB has published 'Lack of
part of the investment. The consolidated statements of
Exchangeability (Amendments to IAS 21)' that contains
operations include the Company’s share of the profit or loss of
guidance to specify when a currency is exchangeable and how
associates and joint ventures from the date that significant
to determine the exchange rate when it is not and how an entity
influence or joint control commences until the date significant
determines the exchange rate to apply when a currency is not
influence or joint control ceases and any impairment losses.
exchangeable. The amendments also require the disclosure of
Adjustments to the carrying amount may also be necessary for
additional information when a currency is not exchangeable.
changes in the Company’s proportionate interest in the investee
The amendments are effective for annual periods beginning on
arising from changes in the investee’s equity that have not been
or after January 1, 2025 with early adoption permitted. The
recognized in the investee’s profit or loss. The Company’s share
amendments do not apply retrospectively. An entity recognizes
of those changes is recognized directly in the relevant reserve
any effect of initially applying the amendments as an adjustment
within equity.
to the opening balance of retained earnings when the entity
reports foreign currency transactions. When an entity uses a The Company assesses the recoverability of its investments
presentation currency other than its functional currency, it accounted for under the equity method whenever there is an
recognizes the cumulative amount of translation differences in indication of impairment. In determining the value in use of its
equity. investments, the Company estimates its share in the present
value of the projected future cash flows expected to be
The Company is still assessing the potential impact of the
generated by operations of associates and joint ventures (see
amendments to IAS 7, IFRS 7 and IAS 21 to its consolidated
also note 2.4.4).
financial statements. The Company does not plan to early adopt
any amendments. For investments in joint operations, in which ArcelorMittal
exercises joint control and has rights to the assets and
NOTE 2: SCOPE OF CONSOLIDATION
obligations for the liabilities relating to the arrangement, the
2.1 Basis of consolidation Company recognizes its assets, liabilities and transactions,
The consolidated financial statements include the accounts of including its share of those incurred jointly.
the Company, its subsidiaries and its interests in associated

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(millions of U.S. dollar, except share and per share data)

Investments in other entities, over which the Company and/or its of consolidated subsidiaries, associates and jointly controlled
operating subsidiaries do not have the ability to exercise entities to transfer funds to the parent in the form of cash
significant influence, are accounted for as investments in equity dividends to pay commitments as they come due.
instruments at FVOCI with any resulting gain or loss, net of
related tax effect, recognized in the consolidated statements of Intercompany balances and transactions, including income,
other comprehensive income. Realized gains and losses from expenses and dividends, are eliminated in the consolidated
the sale of investments in equity instruments at FVOCI are financial statements. Gains and losses resulting from
reclassified from other comprehensive income to retained intercompany transactions are also eliminated.
earnings within equity upon disposal.
Non-controlling interests represent the portion of profit or loss
While there are certain limitations on the Company’s operating and net assets not held by the Company and are presented
and financial flexibility arising from the restrictive and financial separately in the consolidated statements of operations, in the
covenants of one of the Company’s credit facilities described in consolidated statements of other comprehensive income and
note 6.1.2, there are no significant restrictions resulting from within equity in the consolidated statements of financial position.
borrowing agreements or regulatory requirements on the ability

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(millions of U.S. dollar, except share and per share data)

2.2 Investments in subsidiaries

2.2.1 List of subsidiaries

The table below provides a list of the Company’s principal operating subsidiaries at December 31, 2023. Unless otherwise stated, the
subsidiaries listed below have share capital consisting solely of ordinary shares or voting interests in the case of partnerships, which are
held directly or indirectly by the Company and the proportion of ownership interests held equals to the voting rights held by the
Company. The country of incorporation corresponds to their principal place of operations.

Name of Subsidiary Country % of Ownership

NAFTA
ArcelorMittal Dofasco G.P. Canada 100.00%
ArcelorMittal México S.A. de C.V. Mexico 100.00%
ArcelorMittal Long Products Canada G.P. Canada 100.00%
ArcelorMittal Texas HBI LLC USA 80.00%
Brazil and neighboring countries ("Brazil")
ArcelorMittal Brasil S.A. Brazil 97.08%
Acindar Industria Argentina de Aceros S.A. ("Acindar") Argentina 100.00%
ArcelorMittal Pecém 1 Brazil 100.00%
Europe
ArcelorMittal France S.A.S. France 100.00%
ArcelorMittal Belgium N.V. Belgium 100.00%
ArcelorMittal España S.A. Spain 99.85%
ArcelorMittal Flat Carbon Europe S.A. Luxembourg 100.00%
ArcelorMittal Poland S.A. Poland 100.00%
ArcelorMittal Eisenhüttenstadt GmbH Germany 100.00%
ArcelorMittal Bremen GmbH Germany 100.00%
ArcelorMittal Méditerranée S.A.S. France 100.00%
ArcelorMittal Belval & Differdange S.A. Luxembourg 100.00%
ArcelorMittal Hamburg GmbH Germany 100.00%
ArcelorMittal Duisburg GmbH Germany 100.00%
ArcelorMittal International Luxembourg S.A. Luxembourg 100.00%
Africa and Commonwealth of Independent States ("ACIS")
ArcelorMittal South Africa Ltd. ("AMSA") South Africa 69.22%
JSC ArcelorMittal Temirtau 3 Kazakhstan —
PJSC ArcelorMittal Kryvyi Rih ("AM Kryvyi Rih") Ukraine 95.13%
Mining
ArcelorMittal Mining Canada G.P. and ArcelorMittal Infrastructure Canada G.P. ("AMMC") Canada 85.00%
ArcelorMittal Liberia Ltd2 Liberia 85.00%

1. Acquisition during the year. For more details see note 2.2.4.
2. ArcelorMittal Liberia Ltd is incorporated in Cyprus.
3. On December 7, 2023, the Company completed the sale of ArcelorMittal Temirtau, its Kazakh steel and mining operation see note 2.3.

2.2.2 Translation of financial statements denominated in foreign Transactions in currencies other than the functional currency of
currency a subsidiary are recorded at the rates of exchange prevailing at
The functional currency of ArcelorMittal S.A. is the U.S. dollar. the date of the transaction. Monetary assets and liabilities in
The functional currency of each of the principal operating currencies other than the functional currency are remeasured at
subsidiaries is the local currency, except for ArcelorMittal the rates of exchange prevailing on the date of the consolidated
México, AMMC, ArcelorMittal Liberia Ltd, ArcelorMittal statements of financial position and the related translation gains
International Luxembourg, whose functional currency is the U.S. and losses are reported within financing costs in the
dollar and ArcelorMittal Poland, whose functional currency is the consolidated statements of operations. Non-monetary items that
euro. are carried at cost are translated using the rate of exchange
prevailing at the date of the transaction. Non-monetary items

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(millions of U.S. dollar, except share and per share data)

that are carried at fair value are translated using the exchange any, less the net recognized amount (generally at fair value) of
rate prevailing when the fair value was determined and the the identifiable assets acquired and liabilities assumed.
related translation gains and losses are reported in the
consolidated statements of comprehensive income. In a business combination in which the fair value of the
identifiable net assets acquired exceeds the cost of the acquired
Upon consolidation, the results of operations of ArcelorMittal’s business, the Company reassesses the fair value of the assets
subsidiaries, associates and joint arrangements whose acquired and liabilities assumed. If, after reassessment,
functional currency is other than the U.S. dollar are translated ArcelorMittal’s interest in the net fair value of the acquiree’s
into U.S. dollar at the monthly average exchange rates and identifiable assets, liabilities and contingent liabilities exceeds
assets and liabilities are translated at the year-end exchange the cost of the business combination, the excess (bargain
rates. Translation adjustments are recognized directly in other purchase) is recognized immediately as a reduction of cost of
comprehensive income and are included in net income sales in the consolidated statements of operations.
(including non-controlling interests) only upon sale or liquidation
of the underlying foreign subsidiary, associate or joint Any contingent consideration payable is recognized at fair value
arrangement. at the acquisition date and any costs directly attributable to the
business combination are expensed as incurred.
Since July 1, 2018, Argentina has been considered a highly
inflationary country and therefore the financial statements of the 2.2.4 Acquisitions
Company's long production facilities Acindar Industria Argentina In January 2023, ArcelorMittal Brasil settled the undisputed
de Aceros S.A. ("Acindar") in Argentina, using a historical cost amount it accepts as the value of the Votorantim put option for
approach, are adjusted prospectively to reflect the changes in 179 (see note 11.5.2).
the general purchasing power of the local currency before being
On March 9, 2023, following receipt of customary regulatory
translated into U.S. dollar at the year-end exchange rate. The
approvals, ArcelorMittal completed the acquisition of Companhia
Company used an estimated general price index (Consumer
Siderúrgica do Pecém subsequently renamed ArcelorMittal
Price Index "IPC") which changed by 211.4%, 94.8% and 50.3%
Pecém for total cash consideration of 2,193. The Company
for the year ended December 31, 2023, 2022 and 2021,
recognized acquisition-related costs of 4 in selling, general and
respectively, for this purpose. As a result of the inflation-related
administrative expenses. ArcelorMittal Pecém is a world-class
adjustments on non-monetary items, a loss of 105 and 4 and a
operation, producing high-quality slab at a globally competitive
gain of 33 was recognized in net financing costs for the year
cost. ArcelorMittal Pecém’s state-of-the-art steel facility in the
ended December 31, 2023, 2022 and 2021, respectively.
state of Ceará in northeast Brazil was commissioned in 2016
Since 2010 Venezuela has been considered a hyperinflationary and produced its first slabs in June of that year. It operates a
economy and therefore the financial statements of Unicon are three-million tonne capacity blast furnace and has access via
adjusted to reflect the changes in the general purchasing power conveyors to the Port of Pecém, a large scale, deep water port
of the local currency before being translated into U.S. dollar. The located 10 kilometers from the plant. ArcelorMittal Pecém
Company used estimated general price indices which changed operates within Brazil’s first Export Processing Zone, and
by 190%, 207% and 686% for the years ended December 31, benefits from various tax incentives including a low corporate
2023, 2022 and 2021, respectively, for this purpose. As a result income tax rate. The Company completed its measurement of
of the inflation related adjustments a gain of 8, 5 and 14 was the acquisition-date fair value of the identifiable assets and
recognized in net financing cost for the years ended liabilities of ArcelorMittal Pecém. Acquired current assets and
December 31, 2023, 2022 and 2021, respectively. other liabilities include 2,605 and 2,605 of restricted cash held in
escrow and debt, respectively, which were settled after
2.2.3 Business combinations acquisition date. The Company presented these settlements as
Business combinations are accounted for using the acquisition non-cash transactions in the consolidated statements of cash
method as of the acquisition date, which is the date on which flows. It recognized also 3,123 (including trade receivables of
control is transferred to ArcelorMittal. The Company controls an 60), 1,824 and 100 of current assets, property, plant and
entity when it is exposed to or has rights to variable returns from equipment and intangible assets, respectively. ArcelorMittal
its involvement with the entity and has the ability to affect those recognized 164 goodwill resulting from operational and financial
returns through its power over the entity. synergies. Revenue and net income since acquisition date were
1,497 and 340, respectively. ArcelorMittal Pecém is part of the
The Company measures goodwill at the acquisition date as the Brazil reportable segment.
total of the fair value of consideration transferred, plus the
proportionate amount of any non-controlling interest, plus the During the first half of 2023, the Company also completed two
fair value of any previously held equity interest in the acquiree, if acquisitions relating to ArcelorMittal Downstream Solutions

264
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(millions of U.S. dollar, except share and per share data)

within the Europe reportable segment ("AMDS acquisitions"). income since acquisition date till December 31, 2022 were 14
On January 3, 2023, ArcelorMittal completed the acquisition of and 3, respectively.
Riwald Recycling, a state-of-the-art ferrous scrap metal
recycling business based in the Netherlands. The acquisition is On May 9, 2022, in order to strengthen the Company's plate
part of ArcelorMittal's strategy of increasing the use of scrap operations in the Europe reportable segment in selected
steel to lower CO2 emissions from steelmaking in both the EAF downstream and distribution activities, ArcelorMittal increased
and BF-BOF routes. On March 10, 2023, the Company also its interest in the former associate Centro Servizi Metalli S.p.A.
completed the acquisition of the German insulation panel ("CSM"), a stainless plate processing business with operations
manufacturer Italpannelli Germany (subsequently renamed Trier mainly in Italy and Poland, from 49.29% to 91.68% through the
Insulated Panels), which will complement the existing acquisition of a 42.39% controlling stake for €13.5 million (7 net
geographic presence and strengthen the product portfolio of of cash acquired of 7). The Company completed its
ArcelorMittal Downstream Solutions' construction business. The measurement of the acquisition-date fair value of the identifiable
total cash consideration paid for the AMDS acquisitions was asset and liabilities of CSM and recognized a 3 bargain
€144 million (152 net of cash acquired of 4) including debt purchase gain in cost of sales. Revenue and net income since
assumed of 15. The Company completed the measurement of acquisition date till December 31, 2022 were 76 and 8,
the acquisition-date fair value of the identifiable assets and respectively.
liabilities of the AMDS acquisitions and recognized goodwill of
On June 30, 2022, ArcelorMittal completed the acquisition of an
57, which is primarily attributable to the expected synergies and
80% interest in voestalpine’s world-class Hot Briquetted Iron
other benefits from combining the activities of the AMDS
("HBI") plant located in Corpus Christi, Texas and subsequently
acquisitions with those of the Company. Goodwill is not
renamed ArcelorMittal Texas HBI LLC ("ArcelorMittal Texas
deductible for income tax purposes. Revenue and net loss since
HBI") for total consideration of 817 (805 net of cash acquired of
acquisition date were 87 and 4, respectively.
12) including certain post-closing adjustments. The Company
Revenue and net income attributable to the equity holders of the recognized acquisition-related costs of 7 in selling, general and
parent of the Company for the twelve months ended December administrative expenses. The facility has an annual capacity of
31, 2023 were 68,579 and 910, respectively, as though two million tonnes of HBI, a high-quality feedstock made through
ArcelorMittal had completed the ArcelorMittal Pecém and AMDS the direct reduction of iron ore which is used to produce high-
acquisitions as of January 1, 2023. quality steel grades in an EAF, but which can also be used in
blast furnaces, resulting in lower coke consumption. HBI is a
During 2022, among others, the Company completed the premium, compacted form of DRI developed to overcome issues
acquisition of three specialist scrap metal recyclers as the associated with shipping and handling DRI. voestalpine has
Company continually seeks to enhance its ability to source retained a 20% interest in the plant with a corresponding offtake
scrap steel, a key raw material which supports the agreement with an initial ten-year term renewable as long as
ArcelorMittal’s ability to reduce its carbon emissions from voestalpine retains any interest in ArcelorMittal Texas HBI.
steelmaking in both the EAF and BF-BOF routes. ArcelorMittal would own 100% of any future development of
operations. The remaining balance of production will be
On February 28, 2022, ArcelorMittal acquired John Lawrie delivered to third parties under existing supply contracts, and to
Metals Limited ("JLM"), a UK based leading consolidator of ArcelorMittal facilities, including to AM/NS Calvert in Alabama,
ferrous scrap metal, for total consideration of £35 million (43 net upon the commissioning of its 1.5 million tonne EAF. Pursuant to
of cash acquired of 5). The Company completed its the purchase agreement, voestalpine's 20% interest is subject
measurement of the acquisition-date fair value of the identifiable to a call option exercisable by ArcelorMittal upon termination of
asset and liabilities of JLM. Revenue and net income since the offtake agreement or failure by voestalpine to purchase the
acquisition date till December 31, 2022 were 49 and 3, offtake volume and a put option exercisable by voestalpine at
respectively. JLM is part of the Europe reportable segment. the end of the fifth, tenth and fifteenth year subsequently to the
acquisition date. The Company did not ascribe any value to the
On May 2, 2022, ArcelorMittal completed the acquisition of
call option but recognized a 177 financial liability at amortized
Architectural Steel Limited ("ASL"), a UK based manufacturer of
cost measured at the present value of the redemption amount of
bespoke metal fabrications and flashings for building envelopes
the written put option based on the lower of equity value
to strengthen ArcelorMittal Downstream Solutions' construction
increased by an annual contractual return and fair value. The
business within the Europe segment. Total consideration was
Company completed its measurement of the acquisition-date
£36 million (39 net of cash acquired of 6). The Company
fair value of the identifiable assets and liabilities of ArcelorMittal
completed its measurement of the acquisition-date fair value of
Texas HBI. It recognized 283 (including trade receivables of
the identifiable asset and liabilities of ASL. Revenue and net
124), 949 and 11 of current assets, property, plant and

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(millions of U.S. dollar, except share and per share data)

equipment and intangible assets, respectively. ArcelorMittal the identifiable assets and liabilities of the three companies, the
recognized a 97 bargain purchase gain in cost of sales as a Company recognized goodwill of 22. Revenue and net income
result of i) ArcelorMittal's agreement for voestalpine to retain a since acquisition date till December 31, 2022 were 87 and 1,
20% non-controlling interest ii) the above-mentioned offtake respectively. ALBA is part of the Europe reportable segment.
agreement and iii) the fair value of property, plant and
equipment exceeding its carrying amount. Revenue and net On November 19, 2021, the Company completed the acquisition
loss since acquisition date till December 31, 2022 were 445 and of Condesa Tubos, S.L. ("Condesa"), a joint venture in which it
35, respectively. ArcelorMittal HBI is part of the NAFTA already held a 33% interest, through the acquisition of the
reportable segment. remaining 67% stake from a pool of banks for total consideration
of €31 million (25 net of cash acquired of 10). The acquisition of
On July 1, 2022, the Company completed the combined Condesa strengthened ArcelorMittal's tubular operations within
acquisition of three subsidiaries from environmental services the Europe segment. Following the completion of the
and recycling company ALBA International Recycling (ALBA measurement of the acquisition-date fair value of the identifiable
Metall Süd Rhein-Main GmbH, ALBA Electronics Recycling assets and liabilities of Condesa, the Company recognized 92,
GmbH and ALBA Metall Süd Franken GmbH in aggregate 39 and 10 of current assets, property, plant and equipment and
"ALBA") active in ferrous and non-ferrous metal recycling in other non-current assets, respectively, and a 24 bargain
Germany for total consideration of 65 of which €51 million (45 purchase gain in cost of sales as ArcelorMittal's industrial
net of cash acquired of 9) in cash and deferred consideration of expertise was considered by the other previous shareholders.
11. Following the completion of the acquisition-date fair value of

The table below summarizes the final acquisition-date fair value of the assets acquired and liabilities assumed in 2023, 2022 and 2021:

2023 2022 2021

ArcelorMittal AMDS ArcelorMittal
Pecém acquisitions JLM ASL CSM Texas HBI ALBA Condesa
Current assets 3,123 25 10 11 68 283 34 92
Property, plant and equipment 1,824 75 10 14 16 949 53 39
Intangible assets 100 32 24 16 — 11 30 —
Other non-current assets 138 8 — 1 1 — — 10
Total assets 5,185 140 44 42 85 1,243 117 141
Deferred tax liabilities — (14) (8) (6) — (30) (13) —
Other liabilities (3,156) (46) (13) (10) (51) (82) (70) (84)
Total liabilities (3,156) (60) (21) (16) (51) (112) (83) (84)
Net assets acquired 2,029 80 23 26 34 1,131 34 57
Consideration paid net of cash acquired 2,193 152 43 39 7 805 45 25
Deferred consideration — — — — — — 11 —
Non-controlling interests — — — — 4 229 — —
Debt assumed — (15) — — — — — —
Fair value of previously held interests at
acquisition date — — — — 20 — — 11
Remeasurement gain relating to the — — — — — — — (3)
equity interest previously held
Goodwill/(bargain purchase gain) 164 57 20 13 (3) (97) 22 (24)

2.3 Divestments and assets held for sale classified as held for sale only when the sale is highly probable
Non-current assets and disposal groups that are classified as and is available for immediate sale in its present condition and is
held for sale are measured at the lower of carrying amount and marketed for sale at a price that is reasonable in relation to its
fair value less costs to sell. Assets and disposal groups are current fair value. Assets held for sale are presented separately
classified as held for sale if their carrying amount will be in the consolidated statements of financial position and are not
recovered through a sale transaction rather than through depreciated. Gains (losses) on disposal of subsidiaries are
continuing use. The non-current asset, or disposal group, is recognized in cost of sales, whereas gains (losses) on disposal

266
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(millions of U.S. dollar, except share and per share data)

of investments accounted for under the equity method are agreement to be executed by November 30, 2020. The
recognized in income (loss) from investments in associates, joint Amendment Agreement also provided for a 50% reduction in the
ventures and other investments. quarterly rental payments payable by ArcelorMittal, with the
balance being due upon closing of the purchase obligation. On
An operation is classified as discontinued when it represents a December 10, 2020, the Company entered into an investment
separate major line of business or geographical area of agreement with Invitalia - Agenzia nazionale per l'attrazione
operations that either has been disposed of or is classified as degli investimenti e lo sviluppo d'impresa S.P.A (“Invitalia”), the
held for sale. Discontinued operations are reported on a single party designated by the Italian government to be the
line in the Company's consolidated statements of operations. It government-sponsored investor as contemplated in the
reflects the after-tax net income from discontinued operations Amendment Agreement, in order to create a partnership
until the date of disposal and the gains or losses net of taxes between Invitalia and the Company to support the completion of
realized on the disposals of these operations. In addition, cash the purchase obligation.
flows generated by the discontinued operations are reported on
a separate line in the consolidated statement of cash flows for On December 14, 2020, ISP exercised its put option for
the relevant periods. €111 million (135) to sell its share in ArcelorMittal Italia to the
Company and the liability it had recognized upon acquisition of
Divestments in 2023 ArcelorMittal Italia was derecognized.
On December 7, 2023, ArcelorMittal completed the sale of
ArcelorMittal Temirtau, its steel and mining operations in The investment agreement includes two capital increases:
Kazakhstan, to Qazaqstan Investment Corporation ("QIC"), a
state-controlled direct investment fund. Under the terms of the • The first investment of €400 million (476) which was
transaction, on closing ArcelorMittal received consideration of completed on April 14, 2021 provided Invitalia with 50%
286 (254 net of cash disposed of 24 and 8 transaction costs) for voting and governance rights and therefore joint control
net assets and a further 250 as repayment of outstanding intra- over AM InvestCo with a 38% shareholding;
group receivables. ArcelorMittal will also receive an additional
• The second investment of up to €680 million was payable
sovereign-fund guaranteed payment of 450, paid in four equal
on closing of the purchase obligation, which was subject to
annual installments, as repayment of an intra-group loan. All
the satisfaction of various conditions precedent by May
ArcelorMittal Temirtau assets were transferred on an ‘as is’
2022. On May 31, 2022, following an amendment to the
operational basis, meaning QIC assumed control and
investment agreement signed between ArcelorMittal and
accountability for ArcelorMittal Temirtau’s operations. As a result
Invitalia, the latest date for the second equity injection was
of loss of control, the Company derecognized assets and
extended to May 31, 2024. At the end of December 2022,
liabilities of 1,650 and 1,372, respectively. ArcelorMittal
ArcelorMittal, the Italian Government and Invitalia agreed,
recognized in cost of sales a 732 impairment loss of property,
among other things, to accelerate the funding originally
plant and equipment upon measuring the recoverable amount
envisaged to occur in connection with the acquisition of
based on sales proceeds (see note 5.3). The Company also
Ilva’s assets (see note 2.4.1).
recognized in cost of sales a 194 impairment loss of goodwill
following the allocation to the disposal group of a portion of the Subsequently to April 14, 2021, Acciaierie d'Italia Holding
ACIS goodwill in proportion of the consideration received to the (formerly AM InvestCo) operates independently and as such has
total recoverable amount of ACIS operations (see notes 5.1 and its own funding plans. Its main operating subsidiary ArcelorMittal
5.3). In addition, it reclassified 1,469 of foreign exchange Italia was renamed Acciaierie d'Italia. As a result of loss of
translation losses from other comprehensive income to cost of control, the Company derecognized assets (including 199 of
sales in the consolidated statements of operations. cash pooling receivable from the Company and subsequently
settled) and liabilities of 4,639 and 3,873, respectively, and
Divestments in 2021
accounted for its 62% interest in the joint venture under the
On March 4, 2020, ArcelorMittal executed an amendment (the equity method at its fair value of 1,205. The Company
“Amendment Agreement”) to the original lease agreement with recognized in cost of sales a gain of 104 including the
the Ilva Commissioners with a conditional obligation to purchase reclassification from other comprehensive income to the
the former Ilva business units ("ArcelorMittal Italia") in an consolidated statements of operations of foreign exchange
extraordinary administration insolvency procedure. The translation losses and other for 283. The fair value
Amendment Agreement outlined the terms for a significant measurement was determined using a discounted cash flow
equity investment by an Italian state-sponsored entity, thereby model and Level 3 unobservable inputs.
forming the basis for an important new partnership between
ArcelorMittal and the Italian government, with the investment

267
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

The table below summarizes the significant divestments

completed in 2023 and 2021 (there were no divestments in
2022):

2023 2021

ArcelorMittal
Temirtau Acciaerie d'Italia
Cash and cash equivalents 24 4
Other current assets 645 2,446
Intangible assets — 17
Property, plant and equipment 972 1,875
Other assets 9 297
Total assets 1,650 4,639
Current liabilities 882 2,204
Other long-term liabilities 490 1,669
Total liabilities 1,372 3,873
Total net assets 278 766
% of net assets sold 100 % 100 %
Total net assets disposed of 278 766
ArcelorMittal retained interest 62% — 1,205
Goodwill allocation (194) (52)
Consideration 278 —
Reclassification of foreign exchange
and other (1,469) (283)
Gain (loss) on disposal/
derecognition (1,663) 104

2.4 Investments in associates and joint arrangements

The carrying amounts of the Company’s investments accounted for under the equity method were as follows:
December 31,
Category 2023 2022
Joint ventures 5,611 6,372
Associates 3,109 3,060
Individually immaterial joint ventures and associates1 1,358 1,333
Total 10,078 10,765

1. Individually immaterial joint ventures and associates represent in aggregate less than 20% of the total carrying amount of investments in joint ventures and associates at
December 31, 2023 and 2022, and none of them have a carrying value exceeding 150 at December 31, 2023 and 2022.

268
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

2.4.1 Joint ventures

The following tables summarize the latest available financial information and reconcile it to the carrying value of each of the Company’s
material joint ventures, as well as the income statement of the Company’s material joint ventures:
December 31, 2023
Joint Ventures AMNS India Calvert VAMA Tameh Borçelik Al Jubail VdSA Total
United Saudi
Place of incorporation and operation 1 India States China Poland Turkey Arabia Brazil
Production
and sale Renewable
Integrated Automotive Automotive Energy Manufacturing seamless energy
flat steel steel steel production and sale of line pipes production
Principal Activity producer 4,5 finishing 6 finishing and supply steel 2,3 and tubes and supply
Ownership and voting rights at
December 31, 2023 60.00 % 50.00 % 50.00 % 50.00 % 50.00 % 33.34 % 55.00 %
Current assets 3,653 1,798 853 389 559 935 93 8,280
of which cash, cash equivalents and
restricted cash 926 83 201 46 12 297 3 1,568
Non-current assets 10,208 2,125 788 454 238 1,149 190 15,152
Current liabilities 1,617 1,017 557 462 329 542 7 4,531
of which trade and other payables
and provisions 1,310 169 449 368 323 404 7 3,030
Non-current liabilities 6,763 1,103 51 37 39 633 — 8,626
of which trade and other payables
and provisions 997 — 1 28 39 61 — 1,126
Non-controlling interest 27 — — — — — — 27
Net assets attributable to equity
holders of the parent 5,454 1,803 1,033 344 429 909 276 10,248
Company's share of net assets 3,272 902 517 172 215 303 151 5,532
Adjustments for differences in
accounting policies and other 139 (6) — (20) (40) 6 — 79
Carrying amount in the statements of
financial position 3,411 896 517 152 175 309 151 5,611
Revenue 6,710 4,860 1,787 945 1,549 1,205 — 17,056
Depreciation and amortization (446) (70) (36) (37) (25) (69) — (683)
Interest income 54 — 2 2 1 — — 59
Interest expense (207) (51) (5) (14) (35) (49) — (361)
Income tax benefit (expense) (279) — (53) (7) (33) 21 — (351)
Income (loss) from continuing
operations 1,070 99 352 7 29 274 — 1,831
Other comprehensive income (loss) (998) (20) — (14) (6) — — (1,038)
Total comprehensive income (loss) 72 79 352 (7) 23 274 — 793
Cash dividends received by the
Company — 58 — — 21 — — 79

1. The country of incorporation corresponds to the country of operation except for Tameh whose country of operation is also the Czech Republic.
2. Ownership interest in Borçelik was 45.33% and 50.00% based on issued shares and outstanding shares, respectively, at December 31, 2023; voting interest was 48.01%
at December 31, 2023.
3. Adjustment in Borçelik relates primarily to differences in accounting policies regarding revaluation of fixed assets.
4. Adjustments in AMNS India correspond primarily to transaction costs incurred to set up the joint venture and the fair value of the guarantee of the joint venture's debt (see
note 9.4).
5. Includes AMNS Luxembourg, AMNS India and intermediate holding entities.
6. Adjustments in Calvert primarily relate to differences in accounting policies regarding inventory valuation.

269
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

December 31, 2022

Acciaierie
Joint Ventures AMNS India d'Italia Calvert VAMA Tameh Borçelik Al Jubail Total
United Saudi
Place of incorporation and operation 1 India Italy States China Poland Turkey Arabia
Production
and sale
Integrated Integrated Automotive Automotive Energy Manufacturin seamless
flat steel flat steel steel steel production g and sale of line pipes
Principal Activity producer 4,5 producer6 finishing 7 finishing and supply steel 2,3 and tubes
Ownership and voting rights at
December 31, 2022 60.00 % 62.00 % 50.00 % 50.00 % 50.00 % 50.00 % 33.34 %
Current assets 3,494 2,558 2,019 534 448 624 662 10,339
of which cash, cash equivalents and
restricted cash 800 179 216 159 26 70 101 1,551
Non-current assets 9,680 2,765 1,764 761 436 254 1,137 16,797
Current liabilities 1,809 2,754 968 533 434 390 429 7,317
of which trade and other payables
and provisions 1,567 1,844 203 388 390 333 265 4,990
Non-current liabilities 5,928 908 975 61 120 34 738 8,764
of which trade and other payables
and provisions 602 153 — — 27 34 29 845
Non-controlling interest 3 — — — — — — 3
Net assets attributable to equity
holders of the parent 5,434 1,661 1,840 701 330 454 632 11,052
Company's share of net assets 3,260 1,030 920 351 165 227 211 6,164
Adjustments for differences in
accounting policies and other 144 146 (36) — — (42) (4) 208
Carrying amount in the statements of
financial position 3,404 1,176 884 351 165 185 207 6,372
Revenue 7,287 4,525 4,969 1,495 1,080 1,868 918 22,142
Depreciation and amortization (350) (157) (67) (32) (45) (25) (71) (747)
Interest income 70 — — 2 3 2 — 77
Interest expense (162) (34) (36) (5) (16) (22) (43) (318)
Income tax benefit (expense) (273) 25 — (37) (13) (55) (8) (361)
Income (loss) from continuing
operations 323 106 102 249 57 90 29 956
Other comprehensive income (loss) (139) — 71 — 6 22 (1) (41)
Total comprehensive income (loss) 184 106 173 249 63 112 28 915
Cash dividends received by the
Company — — 65 — 13 52 — 130

1. The country of incorporation corresponds to the country of operation except for Tameh whose country of operation is also the Czech Republic.
2. Ownership interest in Borçelik was 45.33% and 50.00% based on issued shares and outstanding shares, respectively, at December 31, 2022; voting interest was 48.01%
at December 31, 2022.
3. Adjustment in Borçelik relates primarily to differences in accounting policies regarding revaluation of fixed assets.
4. Adjustments in AMNS India correspond primarily to transaction costs incurred to set up the joint venture and the fair value of the guarantee of the joint venture's debt (see
note 9.4).
5. Includes AMNS Luxembourg, AMNS India and intermediate holding entities.
6. Includes Acciaierie d'Italia summarized statement of financial position as of December 31, 2022 adjusted for the fair value adjustments at divestment date (see note 2.3).
7. Adjustments in Calvert primarily relate to differences in accounting policies regarding inventory valuation.

270
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

December 31, 2021

AMNS Acciaierie
Joint Ventures India d'Italia Calvert VAMA Tameh Borçelik Al Jubail Total
United Saudi
Place of incorporation and operation1 India Italy States China Poland Turkey Arabia
Production
and sale
Integrated Automotive Automotive Energy Manufacturi seamless
Integrated
flat steel flat steel steel steel production ng and sale line pipes
Principal Activity producer 5,6 producer7 finishing8 finishing and supply of steel 2,3,4 and tubes 9
Ownership and voting rights at
December 31, 2021 60.00 % 62.00 % 50.00 % 50.00 % 50.00 % 50.00 % 29.23 %
Current assets 5,536 3,643 2,334 293 356 983 573 13,718
of which cash and cash equivalents 1,285 92 256 56 62 155 88 1,994
Non-current assets 6,260 2,669 1,418 679 497 243 1,197 12,963
Current liabilities 764 3,313 1,162 466 376 723 533 7,337
of which trade and other payables
and provisions 620 2,840 202 272 330 581 120 4,965
Non-current liabilities 5,770 1,365 790 8 169 56 640 8,798
of which trade and other payables
and provisions 331 1,342 — — 24 44 45 1,786
Net assets 5,262 1,634 1,800 498 308 447 597 10,546
Company's share of net assets 3,157 1,013 900 249 154 224 175 5,872
Adjustments for differences in
accounting policies and other 148 146 (34) — — (29) (16) 215
Carrying amount in the statements of
financial position 3,305 1,159 866 249 154 195 159 6,087
Revenue 7,226 3,291 4,808 1,452 721 1,791 334 19,623
Depreciation and amortization (378) (119) (65) (34) (34) (24) (42) (696)
Interest income 53 — — 3 — 1 — 57
Interest expense (139) (12) (28) (7) (6) (18) (27) (237)
Income tax benefit (expense) (71) 211 — (12) (4) (65) — 59
Income (loss) from continuing
operations 1,436 393 861 95 18 105 (85) 2,823
Other comprehensive income (loss) 818 — 9 — 8 9 — 844
Total comprehensive income (loss) 2,254 393 870 95 26 114 (85) 3,667
Cash dividends received by the
Company — — 50 — 10 13 — 73

1. The country of incorporation corresponds to the country of operation except for Tameh whose country of operation is also the Czech Republic.
2. Ownership interest in Borçelik was 45.33% and 50.00% based on issued shares and outstanding shares, respectively, at December 31, 2021; voting interest was 48.01%
at December 31, 2021.
3. The non-current liabilities include 39 deferred tax liability.
4. Adjustment in Borçelik relates primarily to differences in accounting policies regarding revaluation of fixed assets.
5. Adjustments in AMNS India correspond primarily to transaction costs incurred to set up the joint venture and the fair value of the guarantee of the joint venture's debt (see
note 9.4).
6. Includes AMNS Luxembourg, AMNS India and intermediate holding entities.
7. Includes Acciaierie d'Italia summarized statement of financial position as of December 31, 2021 adjusted for the fair value adjustments at divestment date (see note 2.3).
The summarized statement of comprehensive income presents results of Acciaierie d'Italia for the period from April 14, 2021 to December 31, 2021.
8. Adjustments in Calvert primarily relate to differences in accounting policies regarding inventory valuation.
9. The summarized statement of comprehensive income presents results for the full year 2021 including Jubail Energy Services Company ("JESCO") results after July 31,
2021.

AMNS India crude steel capacity of 8.8 million tonnes per annum. Its
AMNS India is an integrated flat carbon steel manufacturer - manufacturing facilities comprise iron making, steelmaking and
from iron ore to ready-to-market products with an achievable downstream facilities spread across India.

271
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

In 2019, ArcelorMittal and Nippon Steel Corporation ("NSC"), further increase production in a second stage from 15 to 20
Japan’s largest steel producer and the third largest steel million tonnes per annum (Phase 1B).
producer in the world, created a joint venture to own and
operate AMNS India with ArcelorMittal holding a 60% interest The resolution plan submitted for the acquisition of AMNS India
and NSC holding 40%. Through the agreement, both in 2018 includes a capital expenditure plan of approximately 2.6
ArcelorMittal and NSC are guaranteed equal board billion to be implemented in two stages over six years. The first
representation and participation in all significant financial and stage involves investments which increase production of
operating decisions. The Company has therefore determined finished steel goods to 7.6 million tonnes per annum. It includes
that it does not control the entity, even though it holds 60% of capital expenditure projects with respect to third line CSP caster,
the voting rights. AMNS Luxembourg Holding S.A. ("AMNS Paradeep pellet plant (completed), as well as coke oven,
Luxembourg") is the parent company of the joint venture. second sinter plant and Dabuna beneficiation plant (in
ArcelorMittal's 60% interest is accounted for under the equity progress). The first stage also includes investment in
method. maintenance to restore current assets, the implementation of an
environmental management plan and the implementation of
AMNS India’s main steel manufacturing facility is located at ArcelorMittal’s best practices on raw material sourcing, plant
Hazira, Gujarat in western India. It also has: operations, sales and product mix (in particular through greater
sophistication of the quality and markets of the steel produced
– two iron ore beneficiation plants close to the mines in with a focus on developing sales to the automotive industry),
Kirandul and Dabuna, with slurry pipelines that then people management and health & safety. The second stage
transport the beneficiated iron ore slurry to the pellet involving capital expenditure projects to increase the production
plants in the Kirandul-Vizag and Dabuna-Paradeep of finished steel goods from 7.6 million tonnes per annum to 8.6
systems; million tonnes per annum is now included in the expansion
investment plan launched in October 2022 as described above.
– downstream facilities in Pune, Khopoli and
Gandhidham; and On March 16, 2020, AMNS Luxembourg entered into a 5.1
billion ten-year term loan agreement with various Japanese
– six service centers in the industrial clusters of Hazira,
banks which is guaranteed by ArcelorMittal and NSC in
Indore, Bahadurgarh, Chennai, Kolkata and Pune. It
proportion to their interests in the joint venture. On March 30,
has a complete range of flat rolled steel products,
2023, AMNS Luxembourg entered into an additional 5 billion
including value added products, and significant iron ore
ten-year term loan agreement at floating rate with various
pellet capacity with two main pellet plant systems in
Japanese banks. The proceeds of the loan, which is guaranteed
Kirandul-Vizag and Dabuna-Paradeep, which have the
by ArcelorMittal and NSC in proportion to their respective
potential for expansion. Its facilities are located close
interests in the joint venture, will be used for the purposes of
to ports with deep draft for movement of raw materials
financing the expenditures necessary for the implementation of
and finished goods.
phase 1A of expansion to increase production at the Hazira
In terms of iron ore pellet capacity, the Kirandul-Vizag system facility to 15 million tonnes. The loan consists of Tranche A,
has 8 million tonnes of annual pellet capacity; and the Dabuna- Tranche B and Tranche C of 2 billion, 1 billion and 2 billion,
Paradeep system has 12 million tonnes of annual pellet respectively, is arranged to be disbursed by April 30, 2026 at the
capacity. AMNS India intends to further debottleneck existing request of AMNS Luxembourg.
operations (steel shop and rolling parts) in the medium term.
On November 10, 2022, following the approval of the resolution
The first phase of expansion represents capital expenditures of
plan by the National Company Law Tribunal ("NCLT") on
approximately 7.4 billion (0.8 billion for debottlenecking, 1.0
October 14, 2022, AMNS India completed the acquisition of
billion for downstream projects and 5.6 billion for upstream
Uttam Galva Steels Limited subsequently renamed AMNS
projects) and started in October 2022. It aims to increase
Khopoli Limited ("AMNSK"), a downstream steel manufacturer in
production at the Hazira facility to 15 million tonnes of rolled
Maharashtra, for which it had made payments to the financial
products by the first half of 2026 (Phase 1A) following the
creditors of AMNSK in 2018 and 2019.
construction of two blast furnaces (blast furnace 2 to start in
2025 and blast furnace 3 in 2026), the capacity increase of the On August 26, 2022, AMNS India announced a definitive
existing blast furnace 1 from 2 to 3 million tonnes per annum agreement with Essar Group to acquire, port, power plants and
and it includes also a CRM2 complex and galvanizing and other logistics and infrastructure assets in India for a net value
annealing line, steel shop, hot strip mill and ancillary equipment of approximately 2.4 billion. Accordingly, it completed the
(including coke, sinter, networks, power, gas, oxygen plant, etc.) acquisition of a multi-fuel power plant at Hazira on October 19,
and raw material handling. Feasibility studies are ongoing to 2022 as well as a 25 million-tonne jetty at the all-weather deep
272
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

draft bulk port terminal at Hazira and a 12 million-tonne deep- crisis, ArcelorMittal, the Italian Government and Invitalia agreed,
water jetty at Paradeep on November 15, 2022. among other things, to accelerate the funding originally
envisaged to occur in connection with the acquisition of Ilva’s
In terms of iron ore mining assets, AMNS India operates the assets, consisting in particular of €680 million from Invitalia and
Thakurani mine in the Keonjhar district of Odisha and the €70 million from ArcelorMittal (corresponding to an equivalent
Ghoraburhani-Sagasahi mine in the Sudargarh district of amount of receivables towards the Acciaierie d’Italia Group), in
Odisha. AMNS India has also made acquisitions of certain the form of a convertible shareholder loan made available on
ancillary assets including Odisha Slurry Pipeline infrastructure February 14, 2023, as a result of which, upon conversion,
Limited ("OSPIL") which secured an important infrastructure Invitalia’s stake in Acciaierie d’Italia Holding would be increased
asset for raw material supply to the Paradeep pellet plant and to 60% and ArcelorMittal’s would reduce to 40%. The settlement
Hazira steel plant and a captive power plant at Paradeep in of Invitalia’s shareholder loan was completed on February 17,
Odisha. 2023.

On May 6, 2023, AMNS India completed the acquisition of On February 20, 2024, the Italian Government issued a decree
Indian Steel Corporation Limited subsequently renamed AMNS placing Acciaierie d’Italia in extraordinary administration
Gandhidham specialized in cold-rolled, galvanized and non- subsequent to the request of Invitalia, thereby passing control of
ferrous steel products for the automotive, construction, home the company from its current shareholders, ArcelorMittal and
appliance and general engineering sectors. Invitalia, to government appointed commissioners. Acciaierie
d’Italia will in all likelihood not be able to complete the
Acciaierie d'Italia
acquisition of Ilva’s assets.
Acciaierie d'Italia is the leading steel producer in Italy and
produces high-quality and sustainable steel to be used in a VAMA
range of vital industry sectors across the domestic steel market Valin ArcelorMittal Automotive Steel (“VAMA”) is a joint venture
such as construction, energy, automotive, home appliances, between ArcelorMittal and Hunan Valin which produces steel for
packaging and transport and for international export. Acciaierie high-end applications in the automobile industry. VAMA supplies
d'Italia has operations across various structurally linked international automakers and first-tier suppliers as well as
operating sites including Europe’s biggest single-site integrated Chinese car manufacturers and their supplier networks. In April
steel facility in Taranto and rolling mills in Genova and Novi 2023 VAMA announced the start of production for its second
Ligure. Genova is also an important hub in terms of intermodal continuous galvanization line with an annual capacity of 450,000
logistics. tonnes, bringing its total capacity to 2 millions tonnes per year.
Equipment is currently in the ramp-up phase which is expected
On April 14, 2021, pursuant to the investment agreement signed
to be completed by the second half of 2024.
on December 10, 2020 forming a public-private partnership
between Invitalia and ArcelorMittal and providing Invitalia joint Calvert
control rights, ArcelorMittal recorded its 62% interest at its fair AM/NS Calvert ("Calvert"), a joint venture between the
value of 1,205 (see 2.3) at the initial recognition of Acciaierie Company and NSC, is a steel processing plant in Calvert,
d'Italia as equity method investment. Alabama, United States. Calvert had a 6-year agreement to
purchase 2 million tonnes of slabs annually from ThyssenKrupp
On May 31, 2022, Acciaierie d’Italia Holding and Ilva signed an Steel USA ("TK CSA"), an integrated steel mill complex located
amendment to the Ilva lease agreement (with a conditional in Rio de Janeiro subsequently acquired by Ternium S.A., using
purchase obligation) to, among other changes, extend the a market-based price formula. The slab purchase agreement
longstop date for the fulfillment of the conditions precedent (and, with Ternium S.A. was terminated with last purchases concluded
therefore, the term of the lease of the Ilva business) by two in May 2021. The remaining slabs for Calvert's operations are
years until May 31, 2024. In parallel, ArcelorMittal and Invitalia sourced from ArcelorMittal plants in Brazil and Mexico and from
signed an amendment to their investment agreement to extend Cleveland-Cliffs , which following its acquisition of ArcelorMittal
the latest date for the second equity injection to May 31, 2024 to USA entered on December 9, 2020 into a new five-year
coincide with the latest date for the fulfillment of the conditions agreement with Calvert (with an automatic three-year extension
precedent for the purchase of the Ilva business assets and to unless either party provides notice of intent to terminate) for 1.5
reflect certain other circumstances. This amendment to the million tonnes annually for the initial term and 0.55 million
investment agreement confirms Acciaierie d’Italia Holding’s tonnes annually under the extension and which can be reduced
ownership and governance structure until May 2024. At the end with a six-month notice. ArcelorMittal is principally responsible
of December 2022, in order to address the financial for marketing the product on behalf of the joint venture. Calvert
consequences on the Acciaierie d’Italia group of the serves the automotive, construction, pipe and tube, service
unprecedented spike in energy costs caused by the Ukraine center and appliance/ HVAC industries.
273
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Calvert plans to invest in an on-site steelmaking facility through right, allowing each partner to sell its shares to the other one. As
a 1.5 million tonnes capacity EAF (producing slabs for the per the shareholders' agreement, the declaration of acceptance
existing operations and replacing part of the purchased slabs). of an offer that is submitted first shall prevail. ArcelorMittal
Construction commenced in March 2021 after obtaining all successfully served its declaration on Tauron on January 2,
environmental permits, and the facility is expected to start by the 2024. Tauron challenged this assertion and both parties
end of 2024. continue discussions.

VdSA Borçelik
On May 5, 2023, following approval by the Brazilian antitrust Borçelik Çelik Sanayii Ticaret Anonim Şirketi ("Borçelik"),
authority CADE on April 13, 2023, ArcelorMittal formed the joint incorporated and located in Turkey, is a joint venture between
venture Ventos de Santo Antônio Comercializadora de Energia ArcelorMittal and Borusan Holding involved in the manufacturing
S.A. ("VdSA") with Casa dos Ventos, one of Brazil’s largest and sale of cold-rolled and galvanized flat steel products.
developers and producers of renewable energy projects, to
develop a 554 MW wind power project, with ArcelorMittal Al Jubail
holding a 55% stake and Casa dos Ventos holding the ArcelorMittal Tubular Products Al Jubail ("Al Jubail") is a state of
remaining 45%. The project Ventos de Santo Antonio aims to the art seamless tube mill in Saudi Arabia designed and built to
secure and decarbonize a considerable proportion of the serve the fast growing energy producing markets of Saudi
Company's wholly-owned subsidiary ArcelorMittal Brazil’s future Arabia, the Middle East, North Africa and beyond.
electricity needs through a 20-year power purchasing power Al Jubail is a joint venture in which the Company owns a
agreement starting on January 1, 2026. Through the agreement, 33.34% interest. On July 31, 2021, Al Jubail completed the
both ArcelorMittal and Casa dos Ventos are guaranteed equal acquisition of Jubail Energy Services Company ("JESCO"), a
board representation and participation in all significant financial leading producer of carbon steel seamless pipes in Saudi
and operating decisions. The Company has therefore Arabia.
determined that VdSA is a joint venture subject to joint control
The Company had outstanding shareholder loans given to Al
as it does not control the entity, even though it holds a 55%
Jubail for 109 as of December 31, 2020. In connection with the
interest. The Company accounted for its investment in VdSA
shareholding reorganization and completion of the acquisition of
under the equity method with an initial carrying amount of 147,
JESCO, the Company converted its remaining 109 of
of which paid cash consideration of 73.
shareholders loans and 21 of other receivables into equity and
Tameh made an additional 50 cash injection to partially finance the
Tameh is a joint venture between ArcelorMittal and Tauron acquisition. Following the share conversion and capital
Group including four energy production facilities located in injections by ArcelorMittal, the Company's shareholding in Al
Poland and the Czech Republic. Tameh’s objective is to ensure Jubail was diluted from 40.80% to 29.23% as of December 31,
energy supply to the Company’s steel plants in Poland and 2021. During 2022, the Company made 29 cash injection and
external customers in the Czech Republic as well as the converted 14 other receivable into equity. Accordingly,
utilization of steel plant gases for energy production processes. ArcelorMittal's shareholding increased from 29.23% to 33.34%.

Following the occurrence of a deadlock situation, both Tauron

Group and ArcelorMittal had the ability to exercise a put option

274
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

2.4.2 Associates

The following table summarizes the financial information and reconciles it to the carrying amount of each of the Company’s material
associates, as well as the income statement of the Company’s material associates:

December 31, 2023

Gonvarri Steel
Associates China Oriental DHS Group Industries Baffinland 6 Total
September 30, September 30, December 31,
Financial statements reporting date June 30, 2023 2023 2023 2023
1
Place of incorporation and operation Bermuda Germany Spain Canada
Iron and steel Steel Steel Extraction of
Principal Activity manufacturing manufacturing 3 manufacturing 4 iron ore 5
Ownership and voting rights at December 31, 2023 37.00 % 33.43 % 35.00 % 25.23 %
Current assets 3,681 1,919 3,351 720 9,671
Non-current assets 3,124 2,430 2,086 10,572 18,212
Current liabilities 2,909 505 1,857 905 6,176
Non-current liabilities 395 994 940 3,335 5,664
Non-controlling interests 369 125 448 — 942
Net assets attributable to equity holders of the parent 3,132 2,725 2,192 7,052 15,101
Company's share of net assets 1,159 911 767 1,779 4,616
Adjustments for differences in accounting policies and
other — 134 (40) (1,479) (1,385)
Other adjustments2 48 (190) 20 — (122)
Carrying amount in the statements of financial position 1,207 855 747 300 3,109
Revenue 3,183 2,800 5,874 536 12,393
Income / (loss) from continuing operations 40 184 222 (227) 219
Other comprehensive income 1 (1) (25) — (25)
Total comprehensive income (loss) 41 183 197 (227) 194
Cash dividends received by the Company 5 43 35 — 83

1. The country of incorporation corresponds to the country of operation except for China Oriental whose country of operation is China.
2. Other adjustments correspond to the difference between the carrying amount at December 31, 2023 and the net assets situation corresponding to the latest financial
statements ArcelorMittal is permitted to disclose translated with closing rates as of the reporting dates described in the table above.
3. The amount for DHS Group includes an adjustment to align the German GAAP financial information with the Company’s accounting policies and is mainly linked to
property, plant and equipment, inventory and pension.
4. Adjustments in Gonvarri Steel Industries primarily relate to differences in accounting policies regarding revaluation of fixed assets.
5. Adjustments in Baffinland primarily relate to differences in accounting policies regarding recognized goodwill. In September 2020, following a legal reorganization that was
not a business combination for the Company, its share of fair value remeasurement of 1.5 billion was not recognized in the carrying amount of Baffinland.
6. Following a legal reorganization in September 2020, the Company holds an indirect interest in Baffinland through Nunavut Iron Ore Inc.

275
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

December 31, 2022

Gonvarri Steel
Associates China Oriental DHS Group Industries Baffinland6 Total
September 30, September 30, December 31,
Financial statements reporting date June 30, 2022 2022 2022 2022
Place of incorporation and operation1 Bermuda Germany Spain Canada
Iron and steel Steel Steel Extraction of
Principal Activity manufacturing manufacturing 3 manufacturing 4 iron ore 5
Ownership and voting rights at December 31, 2022 37.00 % 33.43 % 35.00 % 25.23 %
Current assets 5,081 1,827 3,400 758 11,066
Non-current assets 3,218 2,257 1,802 10,700 17,977
Current liabilities 4,134 640 2,067 770 7,611
Non-current liabilities 314 863 815 3,379 5,371
Non-controlling interests 348 115 416 — 879
Net assets attributable to equity holders of the parent 3,503 2,466 1,904 7,309 15,182
Company's share of net assets 1,296 824 666 1,844 4,630
Adjustments for differences in accounting policies and
other — 150 (43) (1,488) (1,381)
Other adjustments2 (56) (183) 50 — (189)
Carrying amount in the statements of financial position 1,240 791 673 356 3,060
Revenue 3,857 2,715 5,628 482 12,682
Income / (loss) from continuing operations 190 428 236 (136) 718
Other comprehensive income (loss) 4 18 62 — 84
Total comprehensive income (loss) 193 446 298 (136) 801
Cash dividends received by the Company 28 10 26 — 64

1. The country of incorporation corresponds to the country of operation except for China Oriental whose country of operation is China.
2. Other adjustments correspond to the difference between the carrying amount at December 31, 2022 and the net assets situation corresponding to the latest financial
statements ArcelorMittal is permitted to disclose as of the reporting dates described in the table above.
3. The amount for DHS Group includes an adjustment to align the German GAAP financial information with the Company’s accounting policies and is mainly linked to
property, plant and equipment, inventory and pension.
4. Adjustments in Gonvarri Steel Industries primarily relate to differences in accounting policies regarding revaluation of fixed assets.
5. Adjustments in Baffinland primarily relate to differences in accounting policies regarding revaluation of fixed assets and locally recognized goodwill. In September 2020,
following a legal reorganization that was not a business combination for the Company, its share of provisional fair value remeasurement of 1.5 billion was not recognized
in the carrying amount of Baffinland.
6. Following a legal reorganization in September 2020, the Company holds an indirect interest in Baffinland through Nunavut Iron Ore Inc.

276
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

December 31, 2021

Gonvarri Steel
Associates China Oriental DHS Group Industries Baffinland 6 Total
September 30, September 30, December 31,
Financial statements reporting date June 30, 2021 2021 2021 2021
Place of incorporation and operation1 Bermuda Germany Spain Canada
Iron and steel Steel Steel Extraction of
Principal Activity manufacturing manufacturing 3 manufacturing 4 iron ore 5
Ownership and voting rights at December 31, 2021 37.00 % 33.43 % 35.00 % 25.23 %
Current assets 4,636 1,364 2,840 479 9,319
Non-current assets 2,978 2,668 1,797 10,790 18,233
Current liabilities 3,571 472 1,568 477 6,088
Non-current liabilities 533 1,107 716 3,365 5,721
Non-controlling interests 88 103 415 — 606
Net assets attributable to equity holders of the parent 3,422 2,350 1,938 7,427 15,137
Company's share of net assets 1,266 786 678 1,874 4,604
Adjustments for differences in accounting policies and
other — 55 (47) (1,488) (1,480)
2
Other adjustments 66 (191) (14) — (139)
Carrying amount in the statements of financial position 1,332 650 617 386 2,985
Revenue 3,863 2,011 4,465 676 11,015
Net income (loss) 250 (44) 197 (45) 358
Other comprehensive income (loss) — 7 33 — 40
Total comprehensive income (loss) 250 (37) 230 (45) 398
Cash dividends received by the Company 36 — 17 — 53

1. The country of incorporation corresponds to the country of operation except for China Oriental whose country of operation is China.
2. Other adjustments correspond to the difference between the carrying amount at December 31, 2021 and the net assets situation corresponding to the latest financial
statements ArcelorMittal is permitted to disclose as of the reporting dates described in the table above.
3. The amount for DHS Group includes an adjustment to align the German GAAP financial information with the Company’s accounting policies, and is mainly linked to
property, plant and equipment, inventory and pension.
4. Adjustments in Gonvarri Steel Industries primarily relate to differences in accounting policies regarding revaluation of fixed assets.
5. Adjustments in Baffinland primarily relate to differences in accounting policies regarding revaluation of fixed assets and locally recognized goodwill. In September 2020,
following a legal reorganization that was not a business combination for the Company, its share of provisional fair value remeasurement of 1.5 billion was not recognized
in the carrying amount of Baffinland.
6. Following a legal reorganization in September 2020, the Company holds an indirect interest in Baffinland through Nunavut Iron Ore Inc.

China Oriental
China Oriental Group Company Limited (“China Oriental”) is a Gonvarri Steel Industries
Chinese integrated iron and steel company listed on the Hong Holding Gonvarri SL (“Gonvarri Steel Industries”) is dedicated to
Kong Stock Exchange (“HKEx”). The China Oriental Group has the processing of steel. The entity is a European leader in steel
manufacturing plants in Hebei Province and Guangdong service centers and renewable energy components, with strong
Province of the People’s Republic of China (the “PRC”) and presence in Europe and Latin America.
sells mainly to customers located in the PRC. The China
Baffinland
Oriental Group also carries out property development business
Baffinland Iron Mines Corporation ("Baffinland") owns the Mary
which is mainly in the PRC.
River project, which has direct shipping, high grade iron ore on
DHS Group Baffin Island in Nunavut (Canada).
DHS - Dillinger Hütte Saarstahl AG (“DHS Group”), incorporated
2.4.3 Other associates and joint ventures that are not
and located in Germany, is a leading producer of heavy steel
individually material
plates, cast slag pots and semi-finished products, such as
The Company has interests in a number of other joint ventures
pressings, pressure vessel heads and shell sections in Europe.
and associates, none of which are regarded as individually
The DHS Group also includes a further rolling mill operated by
material. The following table summarizes the financial
Dillinger France in Dunkirk (France).

277
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

information of all individually immaterial joint ventures and

associates that are accounted for using the equity method:

December 31, 2023 December 31, 2022

Joint Joint
Associates Ventures Total Associates Ventures Total
Carrying amount of interests in associates and joint ventures 481 877 1,358 422 911 1,333
Share of:
Income from continuing operations 56 81 137 79 239 318
Other comprehensive income (loss) 4 (2) 2 2 5 7
Total comprehensive income (loss) 60 79 139 81 244 325

2.4.4 Impairment of associates and joint ventures held for trading, in other comprehensive income, because these
In the fourth quarter of 2023, Acciaierie d'Italia's financial investments are held as long-term strategic investments that are
condition has deteriorated due in particular to the continued high not expected to be sold in the short to medium-term. Other
cost of energy and the repeal of relief measures for energy- investments include the following:
intensive companies. It has been experiencing liquidity issues,
which have resulted in conflicts with suppliers. ArcelorMittal, the December 31,
Italian Government and Invitalia discussed the terms and 2023 2022
conditions of a possible support to Acciaierie d'Italia to address Erdemir 205 910
its short-term cash needs and the funding requirements to
ArcelorMittal XCarb 152 76
enable it to complete the acquisition of Ilva’s business units but
Stalprodukt S.A. 65 58
the parties were not able to reach agreement on how to address
Acciaierie d'Italia’s funding needs. The Company assessed the Others 91 75
above facts as indicators of impairment with respect to its Investments in equity instruments at
FVOCI 513 1,119
investment, further confirmed by the extraordinary
administration of Acciaierie d'Italia effective February 20, 2024
The Company’s significant investments in equity instruments at
(see note 2.4.1), and performed accordingly a value in use
FVOCI at December 31, 2023 and 2022 were the following:
calculation resulting in a 1,405 impairment loss considering the
uncertainty about Acciaierie d'Italia's future. Ereĝli Demir ve Çelik Fabrikalari T.A.S. (“Erdemir”)
Erdemir is the leading steel producer in Turkey and produces
The Company is not aware of any material contingent liabilities
plates, hot and cold rolled, tin chromium and zinc coated flat
related to associates and joint ventures for which it is severally
steel and supplies basic inputs to automotive, white goods,
liable for all or part of the liabilities of the associates, nor are
pipes and tubes, rolling, manufacturing, electrics-electronics,
there any contingent liabilities incurred jointly with other
mechanical engineering, energy, heating equipment,
investors. See note 9.4 for disclosure of commitments related to
shipbuilding, defense and packaging industries.
associates and joint ventures.
During the first half of 2023, the Company's interest in Erdemir
2.4.5 Investments in joint operations
decreased from 12% to 4% following the sale at the Istanbul
The Company had investments in the following joint operations
stock exchange of 265 million shares for the net proceeds of
as of December 31, 2023 and 2022:
626. As the investment was classified at FVOCI, the
Peña Colorada accumulated revaluation gain of 333 was transferred from other
Peña Colorada is an iron ore mine located in Mexico in which comprehensive income to retained earnings.
ArcelorMittal holds a 50.00% interest. Peña Colorada operates
Unrealized (losses) gains recognized in other comprehensive
an open pit mine as well as concentrating facility and two-line
income were (105) and 66 for the year ended December 31,
pelletizing facility. Peña Colorada is part of the NAFTA segment.
2023 and 2022, respectively.
2.5 Other investments
Cleveland-Cliffs
Other investments include those investments in equity
Cleveland-Cliffs was historically the largest and oldest
instruments for which the Company does not have significant
independent iron ore mining company in the United States and it
influence. The Company irrevocably elected to present the
became the largest flat-rolled steel company and largest iron ore
changes in fair value of such equity instruments, which are not
pellet producer in North America in 2020 after the acquisition of

278
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

AK Steel and ArcelorMittal USA. It is vertically integrated from Stalprodukt S.A.

mining through iron making, steelmaking, rolling, finishing and Stalprodukt S.A. is a leading manufacturer and exporter of
downstream with hot and cold stamping of steel parts and highly processed steel products based in Poland. Unrealized
components. gains (losses) recognized in other comprehensive income were
8 and (7) for the year ended December 31, 2023 and 2022,
On February 9, 2021 and June 18, 2021, ArcelorMittal respectively. In 2022 the Company sold 117,187 shares for total
completed the sale of 40 million and 38.2 million common consideration of 6. The accumulated loss recognized in other
shares in Cleveland-Cliffs, respectively, as part of a combined comprehensive income of 2 was transferred to retained
primary and secondary public offering of Cleveland-Cliffs shares earnings.
for total net proceeds of 1,377. The accumulated gain of 357
(267 net of tax) recognized in other comprehensive income was 2.6 Income (loss) from investments in associates, joint
transferred to retained earnings. On July 28, 2021, Cleveland- ventures and other investments
Cliffs redeemed the preferred shares and following the Income (loss) from investments in associates, joint ventures and
completion of the review of the redemption notice, ArcelorMittal other investments consisted of the following:
received 1,303. The accumulated gain of 543 (411 net of tax)
recognized in other comprehensive income was transferred to Year ended December 31,
retained earnings. 2023 2022 2021
Share in net earnings of
ArcelorMittal’s XCarb™ innovation fund equity-accounted companies 1,181 1,193 2,091
ArcelorMittal has launched an innovation fund which invests up Impairment charges (1,405) — —
to 100 annually in groundbreaking companies developing Gain (loss) on disposal — — 16
pioneering or breakthrough technologies which will accelerate
Dividend income 1 3 124 97
the steel industry's transition to carbon neutral steelmaking.
Total (221) 1,317 2,204
Since the launch of the XCarbTM innovation fund in March 2021,
1. Mainly 117 and 89 dividend income from Erdemir in 2022 and 2021,
ArcelorMittal has invested 189, including 66 and 43 in 2023 and
respectively.
2022, of which 66 and 43, respectively, in equity instruments at
FVOCI. For the year ended December 31, 2021, the gain on disposal
corresponded to the gain on dilution of the Company's interest
In 2021, ArcelorMittal completed a 30 investment in the carbon
in Al Jubail.
recycling company LanzaTech and a 20 investment in Heliogen,
a renewable energy technology company. ArcelorMittal is also a
lead investor in Form Energy, a company working to accelerate NOTE 3: SEGMENT REPORTING
the development of its breakthrough low-cost energy storage
technology to enable a reliable, secure, and fully-renewable 3.1 Reportable segments
electric grid year-round, with a 25 equity injection delivered in The Company is organized in five operating and reportable
2021 and an additional 17.5 in 2022. In addition, in 2022, segments, which are components engaged in business activities
ArcelorMittal invested 25 in nuclear innovation company from which they earn revenues and incur expenses (including
TerraPower. revenues and expenses relating to transactions with other
components of the Company), for which discrete financial
On January 26, 2023, ArcelorMittal invested 36 in Boston Metal, information is available and whose operating results are
which is developing and commercializing a patented Molten evaluated regularly by the chief operating decision maker
Oxide Electrolysis (MOE) platform for decarbonizing primary (“CODM”) to make decisions about resources to be allocated to
steelmaking and is targeting commercialization of this the segment and assess its performance. The Company's
technology by 2026. On June 30, 2023, ArcelorMittal completed CODM as of December 31, 2023 was the Executive Office -
also a second 25 investment in TerraPower and on July 4, 2023 comprising the Executive Chairman, Mr. Lakshmi N. Mittal and
invested 5 in Char Technologies which is is developing a high the CEO, Mr. Aditya Mittal.
temperature pyrolysis ("HTP") technology that transforms
organic waste streams into valuable energy outputs.

Unrealized (losses) gains recognized in other comprehensive

income were (18) and 50 for the year ended December 31, 2023
and 2022, respectively.

279
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

These operating segments include the attributable goodwill, and packaging sectors. Europe also produces long
intangible assets, property, plant and equipment, and certain products consisting of sections, wire rod, rebar, billets,
equity method investments. They do not include cash and short- blooms and wire drawing, and tubular products. In
term deposits, short-term investments, tax assets and other addition, it includes Downstream Solutions, primarily an
current financial assets. Attributable liabilities are also those in-house trading and distribution arm of ArcelorMittal.
resulting from the normal activities of the segment, excluding tax Downstream Solutions also provides value-added and
liabilities and indebtedness but including post retirement customized steel solutions through further steel
obligations where directly attributable to the segment. The processing to meet specific customer requirements.
treasury function is managed centrally for the Company and is The raw material supply of Europe operations includes
not directly attributable to individual operating segments or sourcing from iron ore captive mines in Bosnia &
geographical areas. Herzegovina.

ArcelorMittal’s segments are structured as follows: • ACIS produces a combination of flat, long and tubular
products. Its steel facilities are located in South Africa,
• NAFTA represents the flat, long and tubular facilities of Ukraine and Kazakhstan (before the Company's
the Company located in Canada, Mexico and the disposal of its steel making operations in Kazakhstan,
United States. NAFTA produces hot briquetted iron see note 2.3). The raw material supply of the ACIS
and flat products such as slabs, hot-rolled coil, cold- operations includes sourcing from iron ore captive
rolled coil, coated steel and plate. These products are mines in Kazakhstan and Ukraine and coal captive
sold primarily to customers in the following sectors: mines in Kazakhstan (before the Company's disposal
automotive, energy, construction, packaging and of its coal and iron ore mining operations in
appliances and via distributors or processors. NAFTA Kazakhstan, see note 2.3).
also produces long products such as wire rod,
sections, rebar, billets, blooms and wire drawing, and • The Mining segment comprises the mines owned by
tubular products. The raw material supply of the ArcelorMittal in Canada and Liberia. It provides the
NAFTA operations includes sourcing from iron ore Company's steel operations with high quality and low-
captive mines in Mexico to supply the steel facilities. cost iron ore reserves and also sells mineral products
to third parties.
• Brazil includes the flat operations of Brazil, the long
and tubular operations of Brazil and neighboring As from January 1, 2024, ArcelorMittal implemented changes to
countries including Argentina, Costa Rica and its organizational structure. India and joint ventures will be
Venezuela. Flat products include slabs, hot-rolled coil, reported as a new operating segment including the joint
cold-rolled coil and coated steel. Long products consist ventures AMNS India, VAMA and Calvert as well as other
of wire rod, sections, bar and rebar, billets, blooms and associates, joint ventures and other investments. The segment
wire drawing. The raw material supply of the Brazil Sustainable Solutions will be composed of a number of high-
operations includes sourcing from iron ore captive growth, niche, capital light businesses playing an important role
mines in Brazil. in supporting climate action (including renewables, special
projects and construction business). They are currently reported
• Europe is the largest flat steel producer in Europe, with within the Europe segment and will be reported as a separate
operations that range from Spain in the west to operating segment. The NAFTA segment will be renamed North
Romania in the east, and covering the flat carbon steel America. Finally, following the sale of the Company’s operations
product portfolio in all major countries and markets. in Kazakhstan, the remaining parts of the former ACIS segment
Europe produces hot-rolled coil, cold-rolled coil, coated will be assigned to Others.
products, tinplate, plate and slab. These products are
sold primarily to customers in the automotive, general

280
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

The following table summarizes certain financial data for ArcelorMittal’s operations by reportable segments.

NAFTA Brazil Europe ACIS Mining Others 1 Elimination Total

Year ended December 31, 2023
Sales to external customers 12,856 11,185 37,919 5,124 1,171 20 — 68,275
Intersegment sales 2 122 1,978 386 298 1,906 18 (4,708) —
Operating income (loss) 1,917 1,461 1,104 (3,021) 1,144 (341) 76 2,340
Depreciation and amortization (535) (341) (1,241) (278) (238) (42) — (2,675)
Impairment — — — (1,038) — — — (1,038)
Capital expenditures 426 917 1,612 406 784 479 (11) 4,613
Year ended December 31, 2022
Sales to external customers 13,716 11,929 47,015 5,863 1,305 16 — 79,844
Intersegment sales 2 58 1,803 248 505 2,091 16 (4,721) —
Operating income (loss) 2,818 2,775 4,292 (930) 1,483 (315) 149 10,272
Depreciation and amortization (427) (246) (1,268) (369) (234) (36) — (2,580)
Impairment — — — (1,026) — — — (1,026)
Capital expenditures 500 708 1,204 483 488 85 — 3,468
Year ended December 31, 2021
Sales to external customers 12,492 10,830 43,200 8,392 1,640 17 — 76,571
Intersegment sales 2 38 2,026 134 1,462 2,405 17 (6,082) —
Operating income (loss) 2,800 3,798 5,672 2,705 2,371 (228) (142) 16,976
Depreciation and amortization (325) (228) (1,252) (450) (228) (40) — (2,523)
Impairment reversal — — 218 — — — — 218
Capital expenditures 369 412 1,282 619 302 24 — 3,008

1. Others include all other operational and non-operational items which are not segmented, such as corporate and shared services, financial activities, and shipping and
logistics.
2. Transactions between segments are reported on the same basis of accounting as transactions with third parties.

The reconciliation from operating income to net income regional markets. Attributed assets are operational assets
(including non-controlling interests) is as follows: employed in each region and include items such as pension
balances that are specific to a country. Unless otherwise stated
Year ended December 31, in the table heading as a segment disclosure, these disclosures
2023 2022 2021 are specific to the country or region stated. They do not include
Operating income goodwill, deferred tax assets, other investments or receivables
2,340 10,272 16,976
and other non-current financial assets. Attributed liabilities are
Income from investments in
associates and joint ventures 1,184 1,317 2,204 those arising within each region, excluding indebtedness.
Impairments of equity method
investments (1,405) — —
Financing costs - net (859) (334) (1,155)
Income before taxes 1,260 11,255 18,025
Income tax expense 238 1,717 2,460
Net income (including non-
controlling interests) 1,022 9,538 15,565

The Company does not regularly provide a measure of total

assets and liabilities for each reportable segment to the CODM.

3.2 Geographical information

Geographical information, by country or region, is separately
disclosed and represents ArcelorMittal’s most significant

281
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Sales (by destination) Non-current assets1 per significant country:

Year ended December 31, December 31,
2023 2022 2021 2023 2022
Americas
Americas
Canada 5,141 5,105
United States 8,886 8,835 7,300
Brazil2 7,103 4,075
Brazil 8,243 8,715 8,204
United States 963 1,079
Canada 3,485 4,188 4,282 Mexico 1,767 1,747
Mexico 3,288 2,876 2,356 Argentina 289 404
Argentina 1,233 1,908 1,440 Venezuela 32 24
Others 1,110 1,538 1,826 Others 21 19
Total Americas 26,245 28,060 25,408 Total Americas 15,316 12,453

Europe Europe
France 4,190 3,618
Germany 6,550 7,761 6,541
Germany 2,629 2,457
Poland 4,466 5,930 5,298
Belgium 2,800 2,534
France 4,611 5,703 4,874
Poland 2,545 2,302
Spain 3,981 4,737 4,187 Ukraine 695 658
Italy1 2,608 4,017 5,426 Spain 2,058 1,978
Czech Republic 1,183 1,432 1,362 Luxembourg 1,898 1,998
Turkey 1,119 1,231 1,508 Bosnia and Herzegovina 159 161
United Kingdom 1,341 1,593 1,519 Romania 37 26
Czech Republic 25 27
Belgium 2,061 2,110 1,847
Others 368 271
Netherlands 1,445 1,774 1,623
Total Europe 17,404 16,030
Russia 901 996 1,583
Asia & Africa
Romania 386 461 443 Kazakhstan3 — 1,555
Ukraine 508 464 948 South Africa 424 567
Others 4,620 6,310 5,025 Liberia 915 420
Total Europe 35,780 44,519 42,184 Morocco 103 88
Asia & Africa India 587 80

South Africa 1,862 2,259 2,448 Others 101 110

Total Asia & Africa 2,130 2,820
Morocco 745 806 689
Unallocated assets 25,827 26,126
Rest of Africa 524 499 1,068
Total 60,677 57,429
China 764 765 943
Kazakhstan2 503 625 747 1. Non-current assets do not include goodwill, deferred tax assets, investments
in associates and joint ventures, other investments and other non-current
South Korea 410 383 608
financial assets (as they are not allocated to the individual countries). Such
India 102 131 142 assets are presented under the caption “Unallocated assets”.
2. Brazil includes ArcelorMittal Pecém acquired on March 9, 2023 (see note
Rest of Asia 1,340 1,797 2,334
2.2.4).
Total Asia & Africa 6,250 7,265 8,979 3. On December 7, 2023, the Company completed the sale of ArcelorMittal
Temirtau (see note 2.3).
Total 68,275 79,844 76,571

1. Sales in Italy include sales from Acciaierie d'Italia until April 14, 2021 (see
3.3 Sales by type of products
note 2.3).
2. On December 7, 2023, the Company completed the divestment of The table below presents sales to external customers by
ArcelorMittal Temirtau. Sales of ArcelorMittal Temirtau were consolidated product type. In addition to steel produced by the Company,
until that date see note 2.3. amounts include material purchased for additional
Revenues from external customers attributed to the country of transformation and sold through distribution services. Mining
domicile (Luxembourg) were 128, 206 and 185 for the years products relate to the Company's own production. Others mainly
ended December 31, 2023, 2022 and 2021, respectively.

282
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

include non-steel and by-products sales, manufactured and

specialty steel products sales, shipping and other services.

Year ended December 31,

2023 2022 2021
Flat products 38,647 44,776 41,895
Long products 14,124 17,486 18,118
Tubular products 2,160 2,683 2,233
Mining products 1,269 1,391 1,860
Others 12,075 13,508 12,465
Total 68,275 79,844 76,571

3.4 Disaggregated revenue

Disaggregated revenue

The tables below summarize the disaggregated revenue recognized from contracts with customers:

Year ended December 31, 2023 NAFTA Brazil Europe ACIS Mining Others Total
Steel sales 11,830 10,393 33,569 4,234 — — 60,026
Non-steel sales 1 541 160 1,585 424 1,140 — 3,850
By-product sales 2 94 174 1,305 168 — — 1,741
Other sales 3 391 458 1,460 298 31 20 2,658
Total 12,856 11,185 37,919 5,124 1,171 20 68,275

Year ended December 31, 2022 NAFTA Brazil Europe ACIS Mining Others Total
Steel sales 12,796 11,133 41,804 5,061 — — 70,794
Non-steel sales 1 491 189 2,212 373 1,274 — 4,539
By-product sales 2 97 125 1,397 173 — — 1,792
Other sales 3 332 482 1,602 256 31 16 2,719
Total 13,716 11,929 47,015 5,863 1,305 16 79,844

Year ended December 31, 2021 NAFTA Brazil Europe ACIS Mining Others Total
Steel sales 12,127 10,225 38,302 7,148 — — 67,802
Non-steel sales 1 1 202 2,240 769 1,607 — 4,819
By-product sales 2 132 111 943 171 — — 1,357
Other sales 3 232 292 1,715 304 33 17 2,593
Total 12,492 10,830 43,200 8,392 1,640 17 76,571

1. Non-steel sales mainly relate to iron ore, coal, scrap and electricity.
2. By-product sales mainly relate to slag, waste and coke by-products.
3. Other sales are mainly comprised of shipping and other services.
and the fulfillment of the Company’s performance obligation
occur at the same time. Revenue from the sale of goods is
NOTE 4: OPERATING DATA
recognized when the Company has transferred control of the
4.1 Revenue goods to the buyer and the buyer obtains the benefits from the
The Company’s revenue is derived from the single performance goods, the potential cash flows and the amount of revenue (the
obligation to transfer primarily steel and mining products under transaction price) can be measured reliably, and it is probable
arrangements in which the transfer of control of the products
283
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

that the Company will collect the consideration to which it is Periodically, the Company enters into volume or other rebate
entitled to in exchange for the goods. programs where once a certain volume or other conditions are
met, it refunds the customer some portion of the amounts
Whether the customer has obtained control over the asset previously billed or paid. For such arrangements, the Company
depends on when the goods are made available to the carrier or only recognizes revenue for the amounts it ultimately expects to
the buyer takes possession of the goods, depending on the realize from the customer. The Company estimates the variable
delivery terms. For the Company’s steel producing operations, consideration for these programs using the most likely amount
generally the criteria to recognize revenue has been met when method or the expected value method, whichever approach best
its products are delivered to its customers or to a carrier who will predicts the amount of the consideration based on the terms of
transport the goods to its customers, this is the point in time the contract and available information and updates its estimates
when the Company has completed its performance obligations. each reporting period.
Revenue is measured at the transaction price of the
consideration received or receivable, the amount the Company The Company’s payment terms range from 30 to 90 days from
expects to be entitled to. date of delivery, depending on the market and product sold. The
Company received 351 as advances from its customers which
Additionally, the Company identifies when goods have left its are classified as unsatisfied performance obligations and
premises, not when the customer receives the goods. recognized as liabilities in line with IFRS 15. The Company
Therefore, the Company estimates, based on its historical expects 100% of these unsatisfied performance obligations as
experience, the amount of goods in-transit when the transfer of of December 31, 2023 to be recognized as revenue during 2024
control occurs at the destination and defers the revenue as the Company’s contracts have an original expected duration
recognition. of one year or less.

The Company’s products must meet customer specifications. A The tables below summarize the movements relating to the
certain portion of the Company’s products are returned or have Company's trade receivable and other for the years ended
claims filed against the sale because the products contained December 31, 2023, 2022 and 2021.
quality defects or other problems. Claims may be either of the
following: Year ended December 31,
2023 2022 2021
– Product Rejection - Product shipped and billed to an
Trade accounts receivable and
end customer that did not meet previously agreed other - opening balance 3,839 5,143 3,072
customer specifications. Claims typically result from Performance obligations
physical defects in the goods, goods shipped to the satisfied 68,275 79,844 76,571
wrong location, goods produced with incorrect Payments received (68,590) (80,977) (74,036)
specifications and goods shipped outside acceptable Impairment of receivables (net
of write backs and utilization) (165) — (69)
time parameters.
Reclassification of the period-
end receivables from /(to) held
– Consequential Damages - Damages reported by the for sale and recognition
customer not directly related to the value of the (derecognition) of receivables
related to business combination
rejected goods (for example: customer processing cost and divestments 1 189 190 182
or mill down time, sampling, storage, sorting, TSR receivables retained in
administrative cost, replacement cost, etc.). ArcelorMittal USA divestment 2 — — (260)
Foreign exchange and others 113 (361) (317)
The Company estimates the variable consideration for such Trade accounts receivable and
claims using the expected value method and reduces the other - closing balance 3,661 3,839 5,143

amount of revenue recognized.

1. 2023 mainly included receivables acquired as part of acquisition of
ArcelorMittal Pecém (see note 2.2.4) and receivables from ArcelorMittal
Warranties: Temirtau recognized upon disposal partially offset by the derecognition of
The warranties and claims arise when the product fails on the ArcelorMittal Temirtau's receivables (see note 2.3). 2022 included mainly
criteria mentioned above. Sales-related warranties associated receivables acquired as part of acquisition of ArcelorMittal Texas HBI (see
note 2.2.4). 2021 included mainly receivables from the joint venture
with the goods cannot be purchased separately and they serve
Acciaierie d'Italia (see note 2.3).
as an assurance that the products sold comply with agreed 2. Cash collateral provided by the Company for the TSR receivables retained in
specifications. Accordingly, the Company accounts for ArcelorMittal USA at the time of disposal in 2020, subsequently fully realized
warranties in accordance with IAS 37 "Provisions, Contingent in 2021.

Liabilities and Contingent Assets" (see note 9).

284
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

4.2 Cost of sales exhausted its recovery efforts and enforcement options.
Cost of sales includes the following components: ArcelorMittal continuously considered the impacts on the current
economic environment in its risk of default assessment for
Year ended December 31, receivables outstanding less than 180 days. Receivables aged
2023 2022 2021 31 days or older and uninsured trade receivables remain
Materials 46,422 51,353 42,737 consistent with historical levels and the Company did not identify
Labor costs 7,038 6,721 6,886 any expected increased risk of default.
Logistic expenses 4,028 4,096 3,931
Trade accounts receivable and allowance for lifetime expected
Depreciation and amortization 2,675 2,580 2,523
credit losses
Net impairment charges/
(reversal) (note 5.3) 1,038 1,026 (218) December 31,
Foreign exchange translation 2023 2022
losses upon disposal of
Kazakhstan operations (note Gross amount 4,025 4,029
2.3) 1,469 — — Allowance for lifetime expected credit losses (364) (190)
Other 868 1,533 1,478 Total 3,661 3,839
Total 63,538 67,309 57,337
The carrying amount of the trade accounts receivable and other
4.3 Trade accounts receivable and other approximates their fair value. Before granting credit to any new
Trade accounts receivable are initially recorded at their customer, ArcelorMittal uses an internally developed credit
transaction price and do not carry any interest. ArcelorMittal scoring system to assess the potential customer’s credit quality
maintains an allowance for lifetime expected credit loss at an and to define credit limits by customer. For all significant
amount that it considers to be a reliable estimate of expected customers, the credit terms must be approved by the credit
credit losses resulting from the inability of its customers to make committees of each reportable segment. Limits and scoring
required payments. In judging the adequacy of the allowance for attributed to customers are reviewed periodically. There are no
expected credit losses, ArcelorMittal considers multiple factors customers who represent more than 5% of the total balance of
including historical bad debt experience, the current and forward trade accounts receivable.
looking economic environment and the aging of the receivables.
Recoveries of trade receivables previously reserved in the Exposure to credit risk by reportable segment
allowance for expected credit losses are recognized as gains in The maximum exposure to credit risk for trade accounts
selling, general and administrative expenses. receivable by reportable segment is as follows:

ArcelorMittal’s policy is to record an allowance for expected December 31,

lifetime credit losses and a charge in selling, general and
2023 2022
administrative expense when a specific account is deemed 337 289
NAFTA
uncollectible. The Company concluded that a trade receivable is
Brazil 1,400 1,127
in default when it is overdue by more than 180 days. Based on 1,587 2,011
Europe
historical experience and analysis, the Company concluded that ACIS 264 347
there is a risk of default as such receivables are generally not Mining 73 65
recoverable and therefore provided for, unless the collectability 3,661 3,839
Total
can be clearly demonstrated. Uninsured trade receivables and
the associated allowance are written off when ArcelorMittal has

285
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Aging of trade accounts receivable

December 31, December 31,
2023 2022
Gross Allowance Total Gross Allowance Total
Not past due 3,070 (19) 3,051 3,063 (17) 3,046
Overdue 1-30 days 303 (1) 302 366 (2) 364
Overdue 31-60 days 83 (2) 81 120 (1) 119
Overdue 61-90 days 44 (1) 43 40 — 40
Overdue 91-180 days 143 (12) 131 97 (2) 95
More than 180 days 382 (329) 53 343 (168) 175
Total 4,025 (364) 3,661 4,029 (190) 3,839

The movements in the allowance are calculated based on purchase costs of raw materials and conversion costs such as
lifetime expected credit loss model for 2023, 2022 and 2021. direct labor and an allocation of fixed and variable production
The allowances in respect of trade accounts receivable during overheads. Raw materials and spare parts are valued at cost,
the periods presented are as follows: inclusive of freight, shipping, handling as well as any other costs
incurred in bringing the inventories to their present location and
Year ended December 31,
condition. Interest charges, if any, on purchases have been
2023 2022 2021
recorded as financing costs. Costs incurred when production
Allowance - opening
balance 190 206 136 levels are abnormally low are capitalized as inventories based
on normal capacity with the remaining costs incurred recorded
Additions 178 19 87
as a component of cost of sales in the consolidated statements
Write backs / utilization (13) (19) (18) of operations.
Foreign exchange and
others 9 (16) 1
Net realizable value represents the estimated selling price at
Allowance - closing
balance 364 190 206 which the inventories can be realized in the normal course of
business after allowing for the cost of conversion from their
The Company has established a number of programs for sales existing state to a finished condition and for the cost of
without recourse of trade accounts receivable to various marketing, selling, and distribution. Net realizable value is
financial institutions (referred to as true sale of receivables estimated based on the most reliable evidence available at the
(“TSR”). Through the TSR programs, certain operating time the estimates were made of being the amount that the
subsidiaries of ArcelorMittal surrender the control, risks and inventory is expected to realize, taking into account the purpose
benefits associated with the accounts receivable sold; therefore, for which the inventory is held.
the amount of receivables sold is recorded as a sale of financial
Previous write-downs are reversed in case the circumstances
assets and the balances are derecognized from the
that previously caused inventories to be written down below cost
consolidated statements of financial position at the moment of
no longer exist.
sale. The Company classifies trade receivables subject to TSR
as financial assets that are held to collect or to sell and Inventories, net of allowance for slow-moving inventory, excess
recognizes them at FVOCI (see note 6). The fair value of cost over net realizable value and obsolescence of 1,434 and
measurement is determined based on the invoice amount net of 1,629 as of December 31, 2023 and 2022, respectively, are
TSR expense payable, a Level 3 unobservable input. The TSR comprised of the following:
expense is insignificant due to the rate applicable and the short
timeframe between the time of sale and the invoice due date. December 31,
Any loss allowance for these trade receivables is recognized in 2023 2022
OCI. As of December 31, 2023 and 2022, the total amount of Finished products 5,372 5,906
trade accounts receivables sold amounted to 4.5 billion and 5.3
Production in process 4,741 5,343
billion, respectively.
Raw materials 6,334 6,639

4.4 Inventories Manufacturing supplies, spare parts and

other 1 2,312 2,199
Inventories are carried at the lower of cost or net realizable
Total 18,759 20,087
value. Cost is determined using the average cost method. Costs
of production in process and finished goods include the
286
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

1. Including spare parts of 1.7 billion and 1.5 billion, and manufacturing and other 4.6 Other assets
supplies of 0.6 billion and 0.7 billion as of December 31, 2023 and 2022,
Other assets consisted of the following:
respectively.

Movements in the inventory write-downs are as follows: December 31,

2023 2022
Year ended December 31, Derivative financial instruments (notes 6.1
2023 2022 2021 and 6.3) 163 835
Inventory write-downs - Financial amounts receivable2 785 429
opening balance 1,629 1,023 1,079 Long-term VAT receivables 215 74
Additions 1 516 759 178 Cash guarantees and deposits 178 155
Deductions / Releases 2
(681) (136) (236) Receivables from public authorities 115 73
Accrued interest 27 24
Foreign exchange and others (30) (17) 2
Receivables from sale of intangible, tangible
Inventory write-downs - and financial assets 100 139
closing balance 1,434 1,629 1,023
Income tax receivable 91 68
1
1. Additions refer to write-downs of inventories excluding those utilized or written Other 185 124
back during the same financial year.
Total 1,859 1,921
2. Deductions/releases correspond to write-backs and utilization related to the
prior periods.
1. Other mainly includes assets in pension funds and other amounts receivable.
4.5 Prepaid expenses and other current assets 2. Includes at December 31, 2023 342 of outstanding receivables in connection
with the sale of ArcelorMittal Temirtau (see note 2.3).
December 31,
2023 2022
4.7 Trade accounts payable and other
VAT receivables 792 1,144
Trade accounts payable are obligations to pay for goods that
Prepaid expenses and non-trade 658 732 have been acquired in the ordinary course of business from
receivables
suppliers. Trade accounts payable have maturities from 15 to
Financial amounts receivable2 247 122
180 days depending on the type of material, the geographic
Income tax receivable 209 158
area in which the purchase transaction occurs and the various
Receivables from public authorities 206 152 contractual agreements. The carrying value of trade accounts
Receivables from sale of intangible, tangible 81 67 payable approximates fair value. The Company’s average
and financial assets
Derivative financial instruments (notes 6.1
outstanding number of trade payable days amounted to 80 over
and 6.3) 643 737 the last 5 years. The ability of suppliers to provide payment
CO2 emission rights 3 491 terms may be dependent on their ability to obtain funding for
Other 1 198 175 their own working capital needs and or their ability to early
discount their receivables at their own discretion (the Company
Total 3,037 3,778
estimates that about 2.9 billion of trade payables were subject to
1. Other included mainly advances to employees, accrued interest and other early discount by its suppliers in 2023 as compared to 2.8 billion
miscellaneous receivables. in 2022).
2. Includes at December 31, 2023 114 of outstanding receivables in connection
with the sale of ArcelorMittal Temirtau (see note 2.3).

287
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

4.8 Accrued expenses and other liabilities Foreign exchange

Accrued expenses and other liabilities were comprised of the December differences and December
31, 2021 Acquisitions1 other movements 31, 2022
following: NAFTA 1,576 — (36) 1,540
December 31, Brazil 1,010 — 60 1,070
2023 2022 Europe 499 55 (31) 523
Accrued payroll and employee related ACIS 846 — (212) 634
expenses 1,403 1,415
Total 3,931 55 (219) 3,767
Accrued interest and other payables 1,134 1,049
1. See note 2.2.4
Payable from acquisition of intangible, 2. See note 2.3
tangible & financial assets 1,270 1,123
Other amounts due to public authorities 691 652 Intangible assets are recognized only when it is probable that
Derivative financial instruments (notes 6.1 the expected future economic benefits attributable to the assets
and 6.3) 360 379 will accrue to the Company and the cost can be reliably
Put option liability ArcelorMittal Sul measured. Intangible assets acquired separately by
Fluminense (note 11.5.2) — 179
ArcelorMittal are initially recorded at cost and those acquired in
Unearned revenue and accrued payables 109 67 a business combination are initially recorded at fair value at the
Total 4,967 4,864 date of the business combination. These primarily include the
cost of technology and licenses purchased from third parties
NOTE 5: GOODWILL, INTANGIBLE AND TANGIBLE ASSETS and operating authorizations granted by governments or other
public bodies (concessions). Intangible assets are amortized on
5.1 Goodwill and intangible assets
a straight-line basis over their estimated economic useful lives,
The carrying amounts of goodwill and intangible assets are
which typically do not exceed five years. Amortization is
summarized as follows:
included in the consolidated statements of operations as part of
December 31, cost of sales.
2023 2022
ArcelorMittal’s industrial sites which are regulated by the
Goodwill on acquisitions 3,908 3,767
European Directive 2003/87/EC of October 13, 2003 on carbon
Concessions, patents and licenses 266 208
dioxide (“CO2”) emission rights, effective as of January 1, 2005,
Customer relationships and trade marks 155 133
are located primarily in Belgium, France, Germany,
Emission rights 642 748
Luxembourg, Poland and Spain. In Ontario, Canada,
Other 131 47
ArcelorMittal's operations have been subject to output based
Total 5,102 4,903 pricing system regulations since January 1, 2019 but effective
January 1, 2022, they are regulated on carbon pricing under the
Goodwill
Ontario Emissions Performance System (“OEPS”). In South
Goodwill arising on an acquisition is recognized as previously
Africa, a CO2 tax system was introduced in 2019.
described within the business combinations section in note
2.2.3. Goodwill is allocated to those groups of cash-generating Emission rights allocated to the Company on a no-charge basis
units that are expected to benefit from the business combination pursuant to the annual national allocation plan are recorded at
in which the goodwill arose and in all cases is at the operating nil value and purchased emission rights are recorded at cost.
segment level, which represents the lowest level at which
goodwill is monitored for internal management purposes.

Goodwill acquired in business combinations for each of the

Company’s operating segments is as follows:

Foreign
exchange
differences
December and other December
31, 2022 Acquisitions1 movements Divestments2 31, 2023
NAFTA 1,540 — 23 — 1,563
Brazil 1,070 164 82 — 1,316
Europe 523 57 33 — 613
ACIS 634 — (24) (194) 416
Total 3,767 221 114 (194) 3,908

288
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Other intangible assets are summarized as follows:

Concessions, Customer
patents and relationships and
licenses trade marks Other Total
Cost
At December 31, 2021 417 1,081 390 1,888
Acquisitions1 54 — 743 797
Acquisitions through business combinations (note 2.2.4) 11 70 — 81
Disposals — — (3) (3)
Foreign exchange differences (43) (60) (12) (115)
Transfers and other movements 7 — (128) (121)
At December 31, 2022 446 1,091 990 2,527
Acquisitions1 75 — 102 177
Acquisitions through business combination (note 2.2.4) 8 24 100 132
Disposal — — (222) (222)
Divestment (note 2.3) (18) — — (18)
Foreign exchange differences 32 49 36 117
Transfers and other movements 13 4 18 35
At December 31, 2023 556 1,168 1,024 2,748

Accumulated amortization and impairment losses

At December 31, 2021 222 1,001 171 1,394
Amortization charge 50 6 31 87
Impairment charge (note 5.3) 6 — — 6
Foreign exchange differences (33) (50) (7) (90)
Transfers and other movements (7) 1 — (6)
At December 31, 2022 238 958 195 1,391
Divestment (note 2.3) (18) — — (18)
Amortization charge 59 12 52 123
Foreign exchange differences 23 43 8 74
Transfers and other movements (12) — (4) (16)
At December 31, 2023 290 1,013 251 1,554

Carrying amount
At December 31, 2022 208 133 795 1,136
At December 31, 2023 266 155 773 1,194

1. Acquisitions in 'other' mainly relate to CO2 emission rights.

using the straight-line method over the useful lives of the related
assets as presented in the table below.
Disposal of other intangible assets resulted in a 414 gain.

Research and development costs not meeting the criteria for

Asset Category Useful Life Range
capitalization are expensed as incurred. These costs amounted
to 299, 286 and 270 for the years ended December 31, 2023, Land Not depreciated
2022 and 2021, respectively and were recognized in selling, Buildings 10 to 50 years
general and administrative expenses. Property plant & equipment 15 to 64 years
Auxiliary facilities 15 to 60 years
5.2 Property, plant and equipment and biological assets
Other facilities 5 to 20 years
Property, plant and equipment is recorded at cost less
accumulated depreciation and impairment. Cost includes all
The Company’s annual review of useful lives leverages on the
related costs directly attributable to the acquisition or
experience gained from an in-depth review performed every five
construction of the asset. Except for land and assets used in
years, any significant change in the expected pattern of
mining activities, property, plant and equipment is depreciated
consumption embodied in the asset, and the specialized

289
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

knowledge of ArcelorMittal’s network of chief technical officers. increased by 168 in 2023 and is expected to increase by 168,
The chief technical officer network includes engineers with 142, 124, 28 and 26 for the years ended December 31, 2024,
facility-specific expertise related to plant and equipment used in 2025, 2026, 2027 and 2028, respectively.
the principal production units of the Company’s operations. The
most recent in-depth review took place in 2019, during which the Mining assets comprise:
Company performed a review of the useful lives of its fixed
• Mineral rights acquired;
assets and determined there were no material changes to the
useful lives of property, plant and equipment. In performing this • Capitalized developmental stripping (as described
review, the Company gathered and evaluated data, including below in “—Stripping and overburden removal costs”).
commissioning dates, designed capacities, maintenance Property, plant and equipment used in mining activities is
records and programs, and asset performance history, among depreciated over its useful life or over the remaining life of the
other attributes. In accordance with IAS 16, Property, Plant and mine, if shorter, and if there is no alternative use. For the
Equipment, the Company considered this information at the majority of assets used in mining activities, the economic
level of components significant in relation to the total cost of the benefits from the asset are consumed in a pattern which is
item of plant and equipment. Other factors the Company linked to the production level and accordingly, assets used in
considered in its determination of useful lives included the mining activities are primarily depreciated on a units-of-
expected use of the assets, technical or commercial production basis. A unit-of-production is based on the available
obsolescence, and operational factors. In addition, the Company estimate of proven and probable reserves.
considered the accumulated technical experience and
knowledge sharing programs that allowed for the exchange of Capitalization of pre-production expenditures ceases when the
best practices within the chief technical officer network and the mining property is capable of commercial production as it is
deployment of these practices across the Company’s principal intended by management. General administration costs that are
production units. not directly attributable to a specific exploration area are
charged to the consolidated statements of operations.
Major improvements, which add to productive capacity or extend
the life of an asset, are capitalized, while repairs and Mineral Reserves and resources
maintenance are expensed as incurred. Where a tangible fixed Mineral Reserves are estimates of the amount of product that
asset comprises major components having different useful lives, can be economically and legally extracted from the Company’s
these components are accounted for as separate items. properties. Furthermore, mineral resource estimates constitute
the part of a mineral deposit that have the potential to be
Property, plant and equipment under construction is recorded as economically and legally extracted or produced at the time of
construction in progress until it is ready for its intended use; the resource determination. In order to estimate mineral
thereafter it is transferred to the related class of property, plant reserves, estimates are required for a range of geological,
and equipment and depreciated over its estimated useful life. technical and economic factors, including quantities, grades,
Interest incurred during construction is capitalized if the production techniques, recovery rates, production costs,
borrowing cost is directly attributable to the construction. Gains transport costs, commodity demand, commodity prices and
and losses on retirement or disposal of assets are recognized in exchange rates. The potential for economic viability and
cost of sales. estimate of mineral resources is established through high level
and conceptual engineering studies.
The residual values and useful lives of property, plant and
equipment are reviewed at each reporting date and adjusted if Estimating the quantity and/or grade of mineral reserves
expectations differ from previous estimates. Depreciation requires the size, shape and depth of ore bodies to be
methods applied to property, plant and equipment are reviewed determined by analyzing geological data such as drilling
at each reporting date and changed if there has been a samples. This process may require complex and difficult
significant change in the expected pattern of consumption of the geological judgments to interpret the data. The estimation of
future economic benefits embodied in the asset. In the context mineral resource is based on detailed and reliable exploration,
of the 2021 annual review of useful lives and considering the sampling and testing information gathered through appropriate
expected date of retirement of certain assets in particular BF techniques from locations such as outcrops, trenches, pits,
and BOF, sinter plants and coke plants following the workings and drill holes that are spaced closely enough to
implementation of the Company's decarbonization strategy confirm both geological and grade continuity.
involving the construction of DRI - EAF facilities, the Company
decreased estimates of residual useful lives of such items of Because the economic assumptions used to estimate mineral
property, plant and equipment for its flat carbon operations in reserves and mineral resources change from period to period,
the EU and in Canada. Accordingly, depreciation charge and because additional geological data is generated during the
290
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

course of operations, estimates of mineral reserves and mineral • If the pits are operated as separate units in terms of
resources may change from period to period. Changes in mine planning and the sequencing of overburden and
reported mineral reserves and mineral resources may affect the ore mining, rather than as an integrated unit.
Company’s financial results and financial position in a number of
ways, including the following: • If expenditures for additional infrastructure to support
the second and subsequent pits are relatively large.
• Asset carrying amounts may be affected due to
changes in estimated future cash flows. • If the pits extract ore from separate and distinct ore
bodies, rather than from a single ore body.
• Depreciation, depletion and amortization charged in the
consolidated statements of operations may change The relative importance of each factor is considered by local
where such charges are determined by the units of management to determine whether the stripping costs should be
production basis, or where the useful economic lives of attributed to the individual pit or to the combined output from
assets change. several pits.

• Overburden removal costs recognized in the Developmental stripping costs contribute to the future economic
consolidated statements of financial position or benefits of mining operations when the production begins and
charged to the consolidated statements of operations so are capitalized as tangible assets (construction in progress),
may change due to changes in stripping ratios or the whereas production stripping is a part of on-going activities and
units of production basis of depreciation. commences when the production stage of mining operations
begins and continues throughout the life of a mine.
• Decommissioning, site restoration and environmental
provisions may change where changes in estimated Capitalization of developmental stripping costs ends when the
reserves affect expectations about the timing or cost of commercial production of the minerals commences.
these activities.
Production stripping costs are incurred to extract the ore in the
Stripping and overburden removal costs form of inventories and/or to improve access to an additional
In open pit and underground mining operations, it is often component of an ore body or deeper levels of material.
necessary to remove overburden and other waste materials to Production stripping costs are accounted for as inventories to
access the deposit from which minerals can be extracted. This the extent the benefit from production stripping activity is
process is referred to as stripping. Stripping costs can be realized in the form of inventories. Production stripping costs are
incurred before the mining production commences recognized as a non-current asset (“stripping activity assets”) to
(“developmental stripping”) or during the production stage the extent it is probable that future economic benefit in terms of
(“production stripping”). improved access to ore will flow to the Company, the
components of the ore body for which access has been
A mine can operate several open pits that are regarded as improved can be identified and the costs relating to the stripping
separate operations for the purpose of mine planning and activity associated with that component can be measured
production. In this case, stripping costs are accounted for reliably.
separately, by reference to the ore extracted from each separate
pit. If, however, the pits are highly integrated for the purpose of All stripping costs assets (either stripping activity assets or
mine planning and production, stripping costs are aggregated. capitalized developmental stripping costs) are presented within
a specific “mining assets” class of property, plant and equipment
The determination of whether multiple pit mines are considered and then depreciated on a units-of-production basis.
separate or integrated operations depends on each mine’s
specific circumstances. The following factors would point Exploration and evaluation expenditure
towards the stripping costs for the individual pits being Exploration and evaluation activities involve the search for iron
accounted for separately: ore and coal resources, the determination of technical feasibility
and the assessment of commercial viability of an identified
• If mining of the second and subsequent pits is resource. Exploration and evaluation activities include:
conducted consecutively with that of the first pit, rather
than concurrently. • researching and analyzing historical exploration data;

• If separate investment decisions are made to develop • conducting topographical, geological, geochemical and
each pit, rather than a single investment decision being geophysical studies;
made at the outset.

291
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

• carrying out exploratory drilling, trenching and sampling • developing passageways and rooms or galleries;
activities;
• building roads and tunnels; and
• drilling, trenching and sampling activities to determine
the quantity and grade of the deposit; • advance removal of overburden and waste rock.

• examining and testing extraction methods and Development (or construction) also includes the installation of
metallurgical or treatment processes; and infrastructure (e.g., roads, utilities and housing), machinery,
equipment and facilities.
• detailed economic feasibility evaluations to determine
whether development of the reserves is commercially When reserves are determined and development is approved,
justified and to plan methods for mine development. expenditures capitalized as exploration and evaluation are
reclassified as construction in progress and are reported as a
Exploration and evaluation expenditure is charged to the component of property, plant and equipment. All subsequent
consolidated statements of operations as incurred except in the development expenditures are capitalized and classified as
following circumstances, in which case the expenditure is construction in progress. On completion of development, all
capitalized: (i) the exploration and evaluation activity is within an assets included in construction in progress are individually
area of interest which was previously acquired in a business reclassified to the appropriate category of property, plant and
combination and measured at fair value on acquisition; or (ii) equipment and depreciated accordingly.
when management has a high degree of confidence in the
project’s economic viability and it is probable that future Biological assets
economic benefits will flow to the Company. Biological assets are part of the Brazil operating segment and
consist of eucalyptus forests located in the Brazilian state of
Capitalized exploration and evaluation expenditures are Minas Gerais exclusively from renewable plantations and
generally recorded as a component of property, plant and intended for the production of charcoal to be utilized as fuel and
equipment at cost less impairment charges, unless their nature a source of carbon in the direct reduction process of pig iron
requires them to be recorded as an intangible asset. As the production in some of the Company’s blast furnaces in Brazil.
asset is not available for use, it is not depreciated and all
capitalized exploration and evaluation expenditure is monitored Biological assets are measured at their fair value, net of
for indications of impairment. To the extent that capitalized estimated costs to sell at the time of harvest. The fair value
expenditure is not expected to be recovered, it is recognized as (Level 3 in the fair value hierarchy) is determined based on the
an expense in the consolidated statements of operations. discounted cash flow method, taking into consideration the cubic
volume of wood, segregated by plantation year, and the
Cash flows associated with exploration and evaluation equivalent sales value of standing trees. The average sales
expenditure are classified as operating activities when they are price was estimated based on domestic market prices. In
related to expenses or as an investing activity when they are determining the fair value of biological assets, a discounted
related to a capitalized asset in the consolidated statements of cash flow model was used, with a harvest cycle of 6 to 7 years.
cash flows.
Power purchase agreements
Development expenditure Power purchase agreements, which provide for the physical
Development is the establishment of access to the mineral delivery of renewable energy and which do not comply neither
reserve and other preparations for commercial production. with the requirements of IFRS 10 for the existence of control or
Development activities often continue during production and joint control over a company, IFRS 11 regarding the existence of
include: joint operation over an asset, IFRS 16 for the recognition of a
lease, nor with the definition of a derivative under IFRS 9 are
• sinking shafts and underground drifts (often called accounted for as an executory contract on the basis of the own
mine development); use exemption when the relevant conditions are met.

• making permanent excavations;

292
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Property, plant and equipment and biological assets are summarized as follows:

Land, Machinery,
buildings and equipment Construction Right-of-use Mining
Improvements and other2 in progress assets Assets Total
Cost
At December 31, 2021 10,121 35,348 4,533 1,750 3,407 55,159
Additions 34 220 3,533 381 33 4,201
Acquisitions through business combinations (note
2.2.4) 193 742 70 37 — 1,042
Foreign exchange differences (811) (3,344) (109) (124) (87) (4,475)
Disposals (137) (545) (4) — (18) (704)
Other movements 1 76 1,712 (2,136) (41) 105 (284)
At December 31, 2022 9,476 34,133 5,887 2,003 3,440 54,939
Additions 61 291 4,372 258 52 5,034
Acquisitions through business combinations (note 789 1,057 23 30 — 1,899
2.2.4)
Foreign exchange differences 473 1,458 112 68 7 2,118
Disposals (191) (850) (1) — (7) (1,049)
Divestments (note 2.3) (40) (2,074) (550) — (661) (3,325)
Other movements 1 282 1,950 (2,500) (87) 201 (154)
At December 31, 2023 10,850 35,965 7,343 2,272 3,032 59,462

Accumulated depreciation and impairment

At December 31, 2021 3,643 17,596 999 678 2,168 25,084
Depreciation charge for the year 283 1,893 — 193 124 2,493
Impairment (note 5.3) 146 688 155 10 21 1,020
Disposals (109) (502) (1) — (18) (630)
Foreign exchange differences (496) (2,403) (9) (59) (68) (3,035)
Other movements 1 (19) (71) (17) (29) (24) (160)
At December 31, 2022 3,448 17,201 1,127 793 2,203 24,772
Depreciation charge for the year 315 1,875 — 235 127 2,552
Impairment (note 5.3) 16 529 233 — 66 844
Disposals (187) (808) — — (7) (1,002)
Foreign exchange differences 248 977 (2) 12 6 1,241
Divestments (note 2.3) (26) (1,521) (235) — (571) (2,353)
Other movements 1 5 (101) (40) (112) — (248)
At December 31, 2023 3,819 18,152 1,083 928 1,824 25,806
Carrying amount
At December 31, 2022 6,028 16,932 4,760 1,210 1,237 30,167
At December 31, 2023 7,031 17,813 6,260 1,344 1,208 33,656

1. Other movements predominantly represent transfers from construction in progress to other categories and retirement of fully depreciated assets.
2. Machinery, equipment and other includes biological assets of 64 and 47 as of December 31, 2023 and 2022, respectively, and bearer plants of 51 and 37 as of
December 31, 2023 and 2022, respectively.

Capital expenditures relating to decarbonization and renewable the Europe segment and 105 and 246 in the ACIS segment,
energy projects respectively.
In 2023 and 2022, capital expenditures relating to
decarbonization projects amounted to 0.2 billion mainly with The carrying amount of property, plant and equipment retired
respect to the ArcelorMittal Dofasco (Canada) DRI/EAF project. from active use and not classified as held for sale was 22 and nil
at December 31, 2023 and 2022 respectively. Such assets are
The carrying amount of temporarily idle property, plant and carried at their recoverable amount.
equipment at December 31, 2023 and 2022 was 264 and 380
including 41 and 39 in Brazil, 6 and 6 in NAFTA, 112 and 89 in Assets pledged as security
See note 9.4 for information about assets pledged as security by
the Company.

293
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Capital commitments projections applied for the determination of the recoverable

See note 9.4 for information about contractual commitments for amount of its GCGUs and CGUs. With the switch to electric
acquisition of property, plant and equipment by the Company. vehicles and the move to wind and solar power generation, the
Company sees also additional opportunities as customers
5.3 Impairment of intangible assets, including goodwill, and deepen their understanding of embedded and lifecycle
tangible assets emissions of the materials where steel compares favorably.

Net impairment charges/(reversals) were as follows: The Company is committed to the objectives of the Paris
agreement and announced its ambition to reduce carbon
Year ended December 31, emissions by 35% in Europe and 25% group-wide by 2030 and
Type of asset 2023 2022 2021 achieve group-wide carbon neutrality by 2050. These
Goodwill 194 — — announced goals will require significant long-term investments
Intangible assets — 6 — which require global level playing field, access to abundant and
Tangible assets 844 1,020 (218) affordable clean energy, facilitating necessary energy
Total 1,038 1,026 (218) infrastructure, access to sustainable finance for low-emissions
steelmaking and accelerated transition to a circular economy. In
Impairment test of goodwill addition, the Company considered the legal obligation of carbon
Goodwill is tested for impairment annually, as of October 1 or neutrality by 2050 effective within the EU and in Canada
whenever changes in circumstances indicate that the carrying following adoption of the Climate Law and the Net Zero
amount may not be recoverable, at the level of the groups of Emission Accountability Act, respectively. Accordingly, with
cash-generating units (“GCGU”) which correspond to the respect to its flat steel operations in the EU and in Canada,
operating segments representing the lowest level at which ArcelorMittal concluded that future decarbonization capital
goodwill is monitored for internal management purposes. expenditures, which correspond essentially to the construction
Whenever the cash-generating units comprising the operating of DRI-EAF facilities, are necessary to maintain the level of
segments are tested for impairment at the same time as economic benefits expected to arise from the assets in their
goodwill, the cash-generating units are tested first and any current condition and should therefore be included in the
impairment of the assets is recorded prior to the testing of Company’s assumptions for future cash flows of the recoverable
goodwill. amount of the respective GCGUs and CGUs. At the same time,
the Company is engaged in developing in the near to medium
The recoverable amounts of the GCGUs are mainly determined
term a range of innovative low-emission technologies for the
based on their value in use. The value in use of each GCGU is
transition to decarbonized steel including the Smart Carbon
determined by estimating future cash flows. The 2023
route and the Hydrogen-DRI route and required investments are
impairment test of goodwill did not include the GCGU
considered in the Company's future cash flow projections.
corresponding to the Mining segment as goodwill allocated to
ArcelorMittal acknowledges that CGUs and GCGUs applying the
this GCGU was fully impaired in 2015. The key assumptions for
BF-BOF route in other jurisdictions than the EU and Canada will
the value in use calculations are primarily the discount rates,
apply decarbonization at a different pace. They may also not yet
growth rates, expected changes to average selling prices,
be subject to a legal obligation of carbon neutrality, as a result of
shipments and direct costs during the period. Assumptions for
which the future estimated decarbonization cost for such
average selling prices and shipments are based on historical
operations is reflected through an additional risk premium
experience and expectations of future changes in the market. In
embedded in discount rates until they are able to accelerate
addition, with respect to raw material price assumptions, the
their decarbonization strategy to meet the 2050 carbon
Company applied a range of $70 per tonne to $114 per tonne for
neutrality objective and a legal obligation arises in the relevant
iron ore ($70 per tonne to $110 per tonne in 2022) and $185 per
jurisdiction.
tonne to $250 per tonne ($170 per tonne to $268 per tonne in
2022) for coking coal. Cash flow forecasts adjusted for the risks ArcelorMittal's most substantial climate-related policy risk is the
specific to the tested assets are derived from the most recent EU Emissions Trading scheme ("'ETS"), which applies to all its
financial plans approved by management for the next five years. European plants. The risk concerns the Company's primary
Beyond the specifically forecasted period, the Company steelmaking plants which are exposed to this regulation. On
extrapolates cash flows for the remaining years based on an April 25, 2023, the EU adopted a revision of the ETS Directive
estimated growth rate of 2%. This rate does not exceed the including a regulation establishing a carbon border adjustment
average long-term growth rate for the relevant markets. mechanism (“CBAM”) which entered into force on May 17, 2023.
The ETS and CBAM regulations will impact the carbon
The Company considered its exposure to certain climate-related
emissions allowances from the second trading period of Phase
risks which could affect its estimates of future cash flow
294
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

IV (2026-2030) onwards as they will be gradually phased out consideration given to the most recent short, medium and long-
(2.5% by 2026, 5% by 2027, 10% by 2028, 22.5% by 2029, term price forecasts and discount rates consistent with external
48.5% by 2030, 61% by 2031, 73.5% by 2032, 86% by 2033 information, expected production and shipment volumes and
and 100% by 2034). The Company’s assumptions for future updated development plans, operating costs and capital
cash flows include an estimate for costs that the Company expenditure plans. 2023 was impacted by a negative price-cost
expects to incur to acquire emission allowances, which primarily effect predominantly on account of lower average steel selling
impacts the flat steel operations in the EU under the ETS prices and lower steel shipments. The decline in steel spreads
scheme and in Canada. The assumption for carbon emission resulted from the pace of the decline in steel prices being
cost is based on historical experience, implementation of greater than the reduction in the raw material basket and energy
decarbonization strategies to mitigate or otherwise offset such costs. At the end of the year, apparent demand conditions
future costs and information available of future regulatory or showed however signs of improvement as the destocking phase
operational changes. With respect to the EU ETS scheme, the reached maturity.
assumption for carbon emission cost includes also the gradual
phasing out of free emission allowances and the forecast market Management estimates discount rates using pre-tax rates that
price of emission rights, for which the Company considered in its reflect current market rates for investments of similar risk. The
five-year cash flow projections internal estimates of 85€/t for rate for each CGU, including beta, cost of debt and capital
2024, 90€/t for 2025 and 100€/t for the period 2026-2028. structure was estimated from the weighted average cost of
capital of producers, which operate a portfolio of assets similar
The assumptions used in the value in use calculations are to those of the Company’s assets and CGU specific country risk
inherently uncertain and require management judgment as premiums were applied. GCGU weighted average pre-tax
described in note 1.3. The Company's process includes specific discount rates were as follows in 2023 and 2022:

NAFTA Brazil Europe ACIS

GCGU weighted average pre-tax discount rate used in 2023 (in %) 13.0 17.2 11.5 20.8
GCGU weighted average pre-tax discount rate used in 2022 (in %) 13.3 18.7 10.6 18.4

Once recognized, impairment losses for goodwill are not

reversed. assumptions most sensitive to change. ACIS is also exposed to
export markets and international steel prices which are volatile,
There were no impairment charges recognized with respect to reflecting the cyclical nature of the global steel industry,
goodwill following the Company’s impairment tests as of developments in particular steel consuming industries and
October 1, 2023 and October 1, 2022. In 2023, in connection macroeconomic trends of emerging markets, such as economic
with the sale of ArcelorMittal Temirtau, the Company recognized growth. Discount rates may be affected by changes in countries’
a 194 impairment loss relating to a portion of ACIS segment specific risks; such risk premium increased significantly since
goodwill allocated to the disposal group in proportion of the total 2022 in Ukraine in the context of the war with Russia. The latter
sale consideration to the recoverable amount of the remaining also led to substantially lower levels of production, shipments
ACIS operations. The total value in use calculated for all and revenue at AMKR and such conditions are expected to
GCGUs decreased overall in 2023 as compared to 2022 continue throughout 2024. The ACIS value in use model
primarily as a result of higher discount rates in Europe and ACIS anticipates an increase in sales volumes in 2024 (5.0 million
and lower cash flow projections for certain GCGUs. tonnes) as compared to 2023 (3.4 million tonnes excluding
shipments from the Company's operations in Kazakhstan) with
In validating the value in use determined for the GCGUs, the higher shipments after 2024. Average selling prices in the model
Company performed a sensitivity analysis of key assumptions are expected to decrease steadily over time. The table below
used in the discounted cash-flow model (such as discount rates, describes the amount by which the value assigned to a key
average steel selling prices and shipments). As of December 31, assumption must change in order for the recoverable amount to
2023, the Company believes that reasonably possible changes equal the carrying amount.
in key assumptions could cause an additional impairment loss to
ACIS
be recognized in respect of the ACIS segment.
Excess of recoverable amount over carrying amount 149
ACIS produces a combination of flat and long products. Increase in pre-tax discount rate (change in basis points) 97
Following the sale of the Company's operations in Kazakhstan, Decrease in average selling price (change in %) 1.3 %
ACIS operations include facilities in South Africa and Ukraine.
Decrease in shipments (change in %) 4.3 %
ACIS is significantly sufficient in iron ore. The Company believes
that sales volumes, prices and discount rates are the key
295
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Impairment test of property, plant and equipment and reversed if, and only if, there has been a change in the
intangibles (excluding goodwill) estimates used to determine the asset’s recoverable amount
At each reporting date, ArcelorMittal reviews the carrying since the last impairment loss was recognized. However, the
amounts of its intangible assets (excluding goodwill) and increased carrying amount of an asset due to a reversal of an
tangible assets to determine whether there is any indication that impairment loss will not exceed the carrying amount that would
the carrying amount of those assets may not be recoverable have been determined (net of amortization or depreciation) had
through continuing use. If any such indication exists, the no impairment loss been recognized for the asset in prior years.
recoverable amount of the asset (or cash generating unit) is A reversal of an impairment loss is recognized immediately as
reviewed in order to determine the amount of the impairment, if part of operating income in the consolidated statements of
any. The recoverable amount is the higher of its fair value less operations.
cost of disposal and its value in use.
Impairment charges and reversals relating to property, plant and
In estimating its value in use, the estimated future cash flows equipment and intangibles (excluding goodwill) were as follows
are discounted to their present value using a pre-tax discount for the years ended December 31, 2023, 2022 and 2021:
rate that reflects current market assessments of the time value
of money and the risks specific to the asset (or cash-generating 2023
unit). For an asset that does not generate cash inflows largely In 2023, ArcelorMittal recognized a 732 impairment charge
independent of those from other assets, the recoverable amount related to property, plant and equipment with respect to the sale
is determined for the cash-generating unit to which the asset on December 7, 2023 of its Kazakhstan operations in the ACIS
belongs. The cash-generating unit is the smallest identifiable segment to Qazaqstan Investment Corporation, a state-
group of assets corresponding to operating units that generate controlled direct investment fund. The impairment loss resulted
cash inflows. If the recoverable amount of an asset (or cash- from the adjustment of the carrying amount of the disposal
generating unit) is estimated to be less than its carrying amount, group to the net sales proceeds of 278 (see note 2.3).
an impairment loss is recognized. An impairment loss is
On November 28, 2023, AMSA announced that it contemplates
recognized as an expense immediately as part of cost of sales
the wind down of its Longs Business subject to a due diligence
(see note 4.2) in the consolidated statements of operations.
and a consultative process involving key customers, suppliers,
In the case of permanently idled assets, the impairment is organized labour, and other stakeholders. Since making the
measured at the individual asset level. Otherwise, the announcement, AMSA has been engaging with various
Company’s assets are measured for impairment at the cash- stakeholders, including Government. These stakeholders have
generating unit level. In certain instances, the cash-generating expressed widespread concern regarding the negative
unit is an integrated manufacturing facility which may also be an economic impact of the closure. AMSA was requested to
operating subsidiary. Further, a manufacturing facility may be consider what support was needed to change the closure
operated in concert with another facility with neither facility decision. Discussions are currently still ongoing. The Company
generating cash inflows that are largely independent from the assessed the recoverable amount of its Longs Business in
cash inflows of the other. In this instance, the two facilities are South Africa based on a value in use calculation and recognized
combined for purposes of testing for impairment. As of accordingly a 112 impairment charge of property, plant and
December 31, 2023 and December 31, 2022, the Company equipment.
determined it has 46 cash-generating units.

An impairment loss, related to intangible assets other than

goodwill and tangible assets recognized in prior years is

Carrying Amount of
Recoverable Total property, plant and
Operating Amount (Value Impairment 2023 Pre-Tax 2022 Pre-Tax equipment as of
Cash Generating Unit Region Segment in Use) Recorded Discount Rate Discount Rate December 31, 2023
Long Products South Africa South Africa ACIS 264 112 17.3 % 17.5 % 86

2022
In 2022, the Company recognized a 1,026 impairment charge level of production, sales and net income and created significant
related to property, plant and equipment (1,020) and intangibles uncertainty about the timing and ability of operations to return to
(6) with respect to AMKR (Ukraine) in the ACIS segment as a a normal level of activity. Adverse geopolitical conditions, which
result of the ongoing conflict in Russia, which resulted in low resulted in a substantial increase in the discount rate applied by

296
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

the Company in its recoverable amount (value in use) by western countries. The Company applied separate discount
calculation, deteriorated further during the fourth quarter of 2022 rates over the discrete projections period, including a higher
following attacks against Ukrainian power infrastructures country risk premium for 2023 cash flow projections and a return
causing additional operational issues for AMKR and the to pre-war country risk premium in the course of 2024 and for
concerns about an intensification of the conflict in connection the terminal value calculation as value in use is sensitive to a
with the announcements of delivery of heavy military equipment difference in country risk for different periods.

2022 Pre-Tax Discount Rates

Carrying amount of
Recoverable Total Applied to Applied to property, plant and
Operating Amount Impairment 2023 subsequent 2021 Pre-Tax equipment as of
Cash-Generating Unit Region Segment (Value in Use) Recorded projections projections Discount Rate December 31, 2022
AMKR Ukraine ACIS 1,003 1,026 47.1 % 20.0 % 16.9 % 655

2021
In the second half of 2021, in connection with the Company’s idling for an indefinite timing. The impairment reversal results
annual test for impairment of goodwill, property, plant and from improved future cash flow projections following restart of
equipment was also tested for impairment at that date. The operations and the Company's decarbonization strategy in
Company reversed 218 of impairment charges which had been Spain.
recognized in 2015 for the Sestao facility in Spain following

Carrying amount of property,

Operating Impairment 2021 Pre-Tax 2020 Pre-Tax plant and equipment as of
Cash-Generating Unit Region Segment Reversed Discount Rate Discount Rate December 31, 2021
Europe flat products Europe Europe 218 8.5 % 8.5 % 11,005

NOTE 6: FINANCING AND FINANCIAL INSTRUMENTS

6.1 Financial assets and liabilities

Financial assets and liabilities mainly comprise:

• gross debt (see note 6.1.2)

• cash and cash equivalents, restricted cash and reconciliations of cash flows (see note 6.1.3)
• net debt (see note 6.1.4)
• derivative financial instruments (see note 6.1.5)
• other non-derivative financial assets and liabilities (see note 6.1.6)

6.1.1 Fair values versus carrying amounts market data and developing estimates. The following table
The estimated fair values of certain financial instruments have summarizes assets and liabilities based on their categories at
been determined using available market information or other December 31, 2023:
valuation methodologies that require judgment in interpreting

297
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

December 31, 2023

Carrying
amount in
the
consolidated Non- Assets / Fair value
statements financial Liabilities at recognized Fair value
of financial assets and amortized in profit or recognized
position liabilities cost loss in OCI Derivatives
ASSETS
Current assets:
Cash and cash equivalents 7,686 — 7,686 — — —
Restricted cash 97 — 97 — — —
Trade accounts receivable and other 3,661 — 3,491 — 170 —
Inventories 18,759 18,759 — — — —
Prepaid expenses and other current assets 3,037 1,304 1,090 — — 643
Total current assets 33,240 20,063 12,364 — 170 643

Non-current assets:
Goodwill and intangible assets 5,102 5,102 — — — —
Property, plant and equipment and biological assets 33,656 33,592 — 64 — —
Investments in associates and joint ventures 10,078 10,078 — — — —
Other investments 513 — — — 513 —
Deferred tax assets 9,469 9,469 — — — —
Other assets 1,859 465 1,095 136 — 163
Total non-current assets 60,677 58,706 1,095 200 513 163
Total assets 93,917 78,769 13,459 200 683 806

LIABILITIES AND EQUITY

Current liabilities:
Short-term debt and current portion of long-term debt 2,312 — 2,312 — — —
Trade accounts payable and other 13,605 — 13,605 — — —
Short-term provisions 588 561 27 — — —
Accrued expenses and other liabilities 4,967 892 3,715 — — 360
Income tax liabilities 297 297 — — — —
Total current liabilities 21,769 1,750 19,659 — — 360

Non-current liabilities:
Long-term debt, net of current portion 8,369 — 8,369 — — —
Deferred tax liabilities 2,432 2,432 — — — —
Deferred employee benefits 2,741 2,741 — — — —
Long-term provisions 1,477 1,477 — — — —
Other long-term obligations 1,061 439 546 — — 76
Total non-current liabilities 16,080 7,089 8,915 — — 76

Equity:
Equity attributable to the equity holders of the parent 53,961 53,961 — — — —
Non-controlling interests 2,107 2,107 — — — —
Total equity 56,068 56,068 — — — —
Total liabilities and equity 93,917 64,907 28,574 — — 436

298
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

December 31, 2022

Carrying amount
in the Assets /
consolidated Non-financial Liabilities at Fair value Fair value
statements of assets and amortized recognized in recognized
financial position liabilities cost profit or loss in OCI Derivatives
ASSETS
Current assets:
Cash and cash equivalents 9,300 — 9,300 — — —
Restricted cash 114 — 114 — — —
Trade accounts receivable and other 3,839 — 3,633 — 206 —
Inventories 20,087 20,087 — — — —
Prepaid expenses and other current assets 3,778 1,566 1,475 — — 737
Total current assets 37,118 21,653 14,522 — 206 737

Non-current assets:
Goodwill and intangible assets 4,903 4,903 — — — —
Property, plant and equipment and biological assets 30,167 30,120 — 47 — —
Investments in associates and joint ventures 10,765 10,765 — — — —
Other investments 1,119 — — — 1,119 —
Deferred tax assets 8,554 8,554 — — — —
Other assets 1,921 259 691 136 — 835
Total non-current assets 57,429 54,601 691 183 1,119 835
Total assets 94,547 76,254 15,213 183 1,325 1,572

LIABILITIES AND EQUITY

Current liabilities:
Short-term debt and current portion of long-term debt 2,583 — 2,583 — — —
Trade accounts payable and other 13,532 — 13,532 — — —
Short-term provisions 1,101 1,078 23 — — —
Accrued expenses and other liabilities 4,864 822 3,663 — — 379
Income tax liabilities 318 318 — — — —
Total current liabilities 22,398 2,218 19,801 — — 379

Non-current liabilities:
Long-term debt, net of current portion 9,067 — 9,067 — — —
Deferred tax liabilities 2,666 2,666 — — — —
Deferred employee benefits 2,606 2,606 — — — —
Long-term provisions 1,306 1,304 2 — — —
Other long-term obligations 914 305 564 — — 45
Total non-current liabilities 16,559 6,881 9,633 — — 45

Equity:
Equity attributable to the equity holders of the parent 53,152 53,152 — — — —
Non-controlling interests 2,438 2,438 — — — —
Total equity 55,590 55,590 — — — —
Total liabilities and equity 94,547 64,689 29,434 — — 424

299
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

The Company classifies the bases used to measure certain Level 3: Inputs for the assets or liabilities that are not based on
assets and liabilities at their fair value. Assets and liabilities observable market data and require management assumptions
carried or measured at fair value have been classified into three or inputs from unobservable markets.
levels based upon a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. The following tables summarize the bases used to measure
certain financial assets and financial liabilities at their fair value
The levels are as follows: on recurring basis.

Level 1: Quoted prices in active markets for identical assets or

liabilities that the entity can access at the measurement date;

Level 2: Significant inputs other than within Level 1 that are

observable for the asset or liability, either directly (i.e.: as prices)
or indirectly (i.e.: derived from prices);

As of December 31, 2023

Level 1 Level 2 Level 3 Total
Assets at fair value:
Investments in equity instruments at FVOCI 315 — 198 513
Trade accounts receivable and other subject to TSR programs* — — 170 170
Derivative financial current assets — 643 — 643
Derivative financial non-current assets — 163 — 163
Total assets at fair value 315 806 368 1,489
Liabilities at fair value:
Derivative financial current liabilities — 332 28 360
Derivative financial non-current liabilities — 22 54 76
Total liabilities at fair value — 354 82 436

*The fair value of TSR program receivables equals carrying amount due to the short time frame between the initial recognition and time of sale.

As of December 31, 2022

Level 1 Level 2 Level 3 Total
Assets at fair value:
Investments in equity instruments at FVOCI 996 — 123 1,119
Trade accounts receivable and other subject to TSR programs* — — 206 206
Derivative financial current assets — 737 — 737
Derivative financial non-current assets — 835 — 835
Total assets at fair value 996 1,572 329 2,897
Liabilities at fair value:
Derivative financial current liabilities — 379 — 379
Derivative financial non-current liabilities — 45 — 45
Total liabilities at fair value — 424 — 424

*The fair value of TSR program receivables equals carrying amount due to the short time frame between the initial recognition and time of sale.

Investments in equity instruments at FVOCI classified as Level 1 by the exchange on which the asset is most actively traded on
refer to listed securities quoted in active markets and include the last trading day of the period, multiplied by the number of
mainly the investment in Erdemir (see note 2.5). A quoted units held without consideration of transaction costs.
market price in an active market provides the most reliable
evidence of fair value and is used without adjustment to Derivative financial assets and liabilities classified as Level 2
measure fair value whenever available, with limited exceptions. refer to instruments to hedge fluctuations in interest rates,
The total fair value is either the price of the most recent trade at foreign exchange rates, raw materials (base metals), freight,
the time of the market close or the official close price as defined
300
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

energy and emission rights, see note 6.1.5 for further

information.

Derivative financial assets and liabilities classified as Level 3 are

described in note 6.1.5.

6.1.2 Gross debt

Gross debt includes bank debt, debenture loans and lease
obligations and is stated at amortized cost.

6.1.2.1 Short-term debt

Short-term debt, including the current portion of long-term debt,
consisted of the following:
December 31,
2023 2022
Short-term bank loans and other
credit facilities including
commercial paper 1 980 1,017
Current portion of long-term debt 1,125 1,338
Lease obligations2 207 228
Total 2,312 2,583

1. The weighted average interest rate on short-term borrowings outstanding was

5.5% and 4.0% as of December 31, 2023 and 2022, respectively.
2. See note 7.

Short-term bank loans and other credit facilities include short-

term loans, overdrafts and commercial paper.

ArcelorMittal has entered into certain short-term committed

bilateral credit facilities renewable on an annual basis. As of
December 31, 2023, facilities totaling approximately 0.6 billion,
remained fully available.

On July 27, 2022, the Company entered into a 2.2 billion bridge
term facility agreement with a financial institution. The facility
may be applied towards the purchase price for the intended
acquisition of ArcelorMittal Pecém, as well as the refinancing of
its existing indebtedness and the payment of related fees, costs
and expenses. The facility was available for 12 months from
signing with two extension options of 6 months each at the
borrower's discretion. On December 8, 2022, an amount of 1.76
billion was cancelled, following the bonds issuances of
September 20, 2022 and November 29, 2022. After the
cancellation, the remaining available amount under the bridge
facility as of December 31, 2022 was 444. On January 31, 2023
the remaining amount available under the bridge facility of 444
was cancelled.

Commercial paper
The Company has a commercial paper program enabling
borrowings of up to €1.5 billion. As of December 31, 2023 and
2022, the outstanding amount was 684 and 796, respectively.

301
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

6.1.2.2 Long-term debt

Long-term debt is comprised of the following:
December 31,
2023 2022
Carrying amount at
Year of maturity Type of Interest Interest rate1 amortized cost
Corporate
5.4 billion Revolving Credit Facility 2023 - 2025 Floating — —
€500 million Unsecured Notes 2023 Fixed 0.95 % — 391
€750 million Unsecured Notes 2023 Fixed 1.00 % — 799
€1.0 billion Unsecured Notes 2024 Fixed 2.25 % 585 567
750 Unsecured Notes 2024 Fixed 3.60 % 290 289
500 Unsecured Notes 2025 Fixed 6.13 % 183 183
€750 million Unsecured Notes 2025 Fixed 1.75 % 826 796
750 Unsecured Notes 2026 Fixed 4.55 % 400 399
€600 million Unsecured Notes 2026 Fixed 4.88 % 659 635
1.2 billion Unsecured Notes 2027 Fixed 6.55 % 1,195 1,193
500 Unsecured Notes 2029 Fixed 4.25 % 496 495
1.0 billion Unsecured Notes 2032 Fixed 6.80 % 989 988
1.5 billion Unsecured Bonds 2039 Fixed 7.00 % 672 672
1.0 billion Unsecured Notes 2041 Fixed 6.75 % 428 428
EIB loan 2025 Fixed 1.16 % 81 140
EIB loan 2032 Floating 5.22 % 309 299
Schuldschein loans 2025 - 2027 Fixed 2.5% - 3.0% 100 96
Schuldschein loans 2025 - 2027 Floating 5.1% - 5.4% 699 674
Other loans 2023 Fixed 1.8 % — 18
Other loans 2029 - 2035 Floating 0.7% - 4.2% 223 243
Total Corporate 8,135 9,305
Americas
Other loans 2024 - 2030 Fixed/Floating 0.0% - 9.5% 45 57
Total Americas 45 57
Europe, Asia & Africa
EBRD Facility 2024 - 2026 Floating 7.2% - 7.9% 177 86
Other loans 2023 - 2043 Fixed/Floating 0.0% - 8.0% 198 129
Total Europe, Asia & Africa 375 215
Total 8,555 9,577
Less current portion of long-term debt (1,125) (1,338)
Total long-term debt (excluding lease obligations) 7,430 8,239
Long-term lease obligations2 939 828
Total long-term debt, net of current portion 8,369 9,067

1. Rates applicable to balances outstanding at December 31, 2023. For debt that has been redeemed in its entirety during 2023, the interest rates refer to the rates at
repayment date.
2. Net of current portion of 207 and 228 as of December 31, 2023 and 2022, respectively. See note 7.

302
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Corporate Facility"). The Letter of Credit Facility is used by the Company

5.5 billion Revolving Credit Facility and its subsidiaries for the issuance of letters of credit and other
On December 19, 2018, ArcelorMittal signed an agreement for a instruments. The terms of the letters of credit and other
5.5 billion revolving credit facility (the "Facility"). This Facility instruments contain certain restrictions as to duration. The Letter
replaced the 5.5 billion revolving credit facility dated April 30, of Credit Facility was amended on October 26, 2012 and
2015, which was amended and extended on December 21, September 30, 2014 to reduce its amount to 450 and to 350,
2016. The agreement incorporated a single tranche of 5.5 billion respectively. On July 31, 2019, the Company refinanced its
maturing on December 19, 2023, with two one-year extension Letter of Credit Facility by entering into a 350 revolving multi-
options. On November 27, 2019 and on November 26, 2020, currency letter of credit facility, which initially matured on July
ArcelorMittal exercised the options to extend the facility's 31, 2022. On August 5, 2020, the Letter of Credit Facility
maturity by one year to December 19, 2024 and to December maturity was extended to July 31, 2023. On November 25,
19, 2025, respectively. On December 19, 2023 extension was 2020, the amount of the Letter of Credit Facility was increased
completed for 5.4 billion of the 5.5 billion revolving credit facility, to 395. On June 25, 2021, the maturity of the Letter of Credit
with 0.1 billion lapsed at maturity. The Facility contains Facility was extended to July 31, 2024.
restrictive covenants, which among other things, limit
encumbrances on the assets of ArcelorMittal and its Bonds
subsidiaries, the ability of ArcelorMittal’s subsidiaries to incur On January 17, 2023, at maturity, ArcelorMittal fully repaid the
debt and the ability of ArcelorMittal and its subsidiaries to outstanding €367 million (395) of its €500 million Fixed Rate
dispose of assets in certain circumstances. ArcelorMittal's long- Notes due 2023.
term credit rating was upgraded on August 9, 2021 by Moody's On May 19, 2023, at maturity, ArcelorMittal fully repaid
to 'Baa3' and its outlook was changed to positive by Moody's on €750 million (812) Fixed Rate Notes due 2023.
February 19, 2024. On June 16, 2023, Standard & Poor's
upgraded ArcelorMittal's outlook to positive and affirmed a long- On January 17, 2024, at maturity, ArcelorMittal fully repaid the
term credit rating of 'BBB-'. On April 27, 2021, the Facility was outstanding €529 million (585) of its €1.0 billion Fixed Rate
amended so that the margin payable will be increased or Notes due 2024.
decreased depending on the Company’s performance against The margin applicable to ArcelorMittal’s principal credit facilities
two metrics measured annually against pre-defined targets with (5.4 billion Revolving Credit Facility and certain other credit
respect to its environmental and sustainability performance facilities) and the coupons on certain of its outstanding bonds
(CO2 intensity of the Company’s European operations and the are subject to adjustment in the event of a change in its long-
number of facilities which have been certified by term credit ratings.
ResponsibleSteel™). The Facility may be used for general
corporate purposes. As of December 31, 2023, the 5.4 billion The following table provides details of the outstanding bonds on
revolving credit facility was fully available. The Company make maturity, the original coupons and the current interest rates for
drawdowns from and repayments on the Facility in the the bonds impacted by changes in the long-term credit rating:
framework of its cash management.

On September 30, 2010, ArcelorMittal entered into 500 revolving

multi-currency letter of credit facility (the "Letter of Credit
Nominal amount of
Initial value outstanding value Date of issuance Repayment date Interest rate1 Issued at
€250 million Unsecured Notes €132 million Jul 4, 2019 Jan 17, 2024 2.25 % 105.59 %
€750 million Unsecured Notes €397 million Jan 17, 2019 Jan 17, 2024 2.25 % 99.72 %
750 Unsecured Notes 290 Jul 16, 2019 Jul 16, 2024 3.60 % 99.86 %
500 Unsecured Notes 184 Jun 1, 2015 Jun 1, 2025 6.13 % 100.00 %
€750 million Unsecured Notes €750 million Nov 19, 2019 Nov 19, 2025 1.75 % 99.41 %
750 Unsecured Notes 401 Mar 11, 2019 Mar 11, 2026 4.55 % 99.72 %
€600 million Unsecured Notes €600 million Sep 26, 2022 Sep 28, 2026 4.88 % 99.65 %
1.2 billion Unsecured Bonds 1.2 Billion Nov 29, 2022 Nov 29, 2027 6.55 % 99.91 %
500 Unsecured Notes 500 Jul 16, 2019 Jul 16, 2029 4.25 % 99.00 %
1.0 billion Unsecured Bonds 1.0 Billion Nov 29, 2022 Nov 29, 2032 6.80 % 99.37 %
1.0 billion Unsecured Bonds 457 Oct 8, 2009 Oct 15, 2039 7.00 % 95.20 %
500 Unsecured Bonds 229 Aug 5, 2010 Oct 15, 2039 7.00 % 104.84 %
1.0 billion Unsecured Notes 434 Mar 7, 2011 Mar 1, 2041 6.75 % 99.18 %

1. Rates applicable at December 31, 2023.

303
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

European Investment Bank (“EIB”) Loan

On June 2, 2021, ArcelorMittal signed a €280 million loan
agreement with the European Investment Bank ("EIB") for Development ("EBRD") in order to support the upgrade of its
funding of research, development and innovation projects in production facilities, energy efficiency improvement and
Europe over the period of 2021-2023. This operation benefits environmental impact reduction. The loan agreement also
from a guarantee from the European Union under the European provides for an additional 175 in loan facilities which are
Fund for Strategic Investments. On March 16, 2022 ArcelorMittal currently uncommitted. As of December 31, 2023, 18 was
draw down the facility in full. As of December 31, 2023, €280 outstanding under the agreement.
million (309) was outstanding.
On December 15, 2022, AMKR entered into a 100 loan
On December 16, 2016, ArcelorMittal signed a €350 million agreement with EBRD for working capital purposes. As of
finance contract with the EIB in order to finance European December 31, 2023, 100 was drawn under the agreement.
research, development and innovation projects over the period
On November 17, 2023, AMKR entered into a 150 loan
2017-2020 within the European Union, predominantly in France,
agreement with EBRD for working capital purposes. 59 were
Belgium and Spain, but also in Poland and Luxembourg. This
committed and fully drawn as of December 31, 2023. 91 will be
operation benefits from a guarantee from the European Union
committed by EBRD in 2024 upon AMKR's request.
under the European Fund for Strategic Investments. As of
December 31, 2023, €73 million (81) was outstanding. On May 25, 2017, ArcelorMittal South Africa signed a 4.5 billion
South African rand revolving borrowing base finance facility
Other loans
maturing on May 25, 2020. The facility was amended and
On May 4, 2022, ArcelorMittal completed the offering of a
extended on July 26, 2019 with a maturity of July 26, 2022. On
€346.5 million variable rate loan, a €24.5 million fixed rate loan,
August 23, 2021, the facility was further amended and restated
a €263 million variable rate loan and a €66 million fixed rate loan
for an amount of 3.5 billion South African rand and with a
in the German Schuldschein market. On May 6, 2022, the
maturity of September 3, 2024. On August 30, 2023, the facility
Company further completed the offering of a €25 million fixed
was further amended and restated for an amount of 4.5 billion
rate loan. The proceeds of these issuances were used for
South African rand and with a maturity of September 7, 2026.
general corporate purposes. As of December 31, 2023,
Any borrowings under the facility are secured by certain eligible
€723 million (799) was outstanding.
inventory and receivables, as well as certain other working
On December 21, 2018, the Company entered into a facility capital and related assets of ArcelorMittal South Africa. The
agreement with a group of lenders for €235 million to finance the facility is used for general corporate purposes. The facility is not
construction of a new hot strip mill in Mexico. This facility guaranteed by ArcelorMittal. As of December 31, 2023, 3.0
became effective upon issuance of a guarantee by the billion South African rand (162) was drawn.
Oesterreichische Kontrollbank AG in March 2019. The last
Other loans
installment under this agreement is due December 28, 2029.
Other loans mainly relate to loans contracted by ArcelorMittal
The outstanding amount in total as of December 31, 2023 was
subsidiaries with different counterparties.
€122 million (134).
Hedge of net investments
On November 29, 2021, ArcelorMittal entered into an agreement
As of April 1, 2018, the Company designated a portfolio of euro
for financing with a financial institution for net proceeds of
denominated debt (€3,627 million and €4,862 million as of
CAD130 million (105) with repayment over several dates in
December 31, 2023 and 2022, respectively) as a hedge of
2021, 2022 and 2023. As of December 31, 2023, the loan was
certain euro denominated investments (€8,635 million and
fully repaid.
€8,837 million as of December 31, 2023 and 2022, respectively)
Other loans relate to various debt with banks and public in order to mitigate the foreign currency risk arising from certain
institutions. euro denominated subsidiaries' net assets. The risk arises from
the fluctuation in spot exchange rates between the U.S. dollar
Americas and euro, which causes the amount of the net investments to
Other loans vary. The hedged risk in the hedge of net investments is a risk of
Other loans relate mainly to loans contracted by ArcelorMittal a weakening euro against the U.S. dollar that will result in a
subsidiaries in Mexico with different counterparties. reduction in the carrying amount of the Company's net
investments in the subsidiaries subject to the hedge. The euro
Europe, Asia and Africa denominated debt is designated as a hedging instrument for the
On December 21, 2017, AMKR entered into a 175 loan
agreement with the European Bank for Reconstruction and
304
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

change in the value of the net investments that is attributable to Year of maturity Amount
changes in the euro/U.S. dollar spot rate. 2024 2,312
2025 1,720
To assess the hedge effectiveness, the Company determines
2026 1,335
the economic relationship between the hedging instrument and
2027 1,749
the hedged item by comparing changes in the carrying amount
2028 154
of the debt portfolio that are attributable to a change in the spot
Subsequent years 3,411
rate with changes in the net investments in the foreign
operations due to movements in the spot rate. Total 10,681

As of December 31, 2023 and 2022, the Company recognized Fair value
166 foreign exchange loss and 197 foreign exchange gain
The following tables summarize the Company’s bases used to
arising on the translation of the euro denominated debt
estimate its debt at fair value. Fair value measurement has been
designated as a hedge of the euro denominated net investments
classified into three levels based upon a fair value hierarchy that
in foreign operations in other comprehensive income within the
reflects the significance of the inputs used in making the
foreign exchange translation reserve.
measurements.
Maturity profile

As of December 31, 2023 the scheduled maturities of short-term

debt, long-term debt and long-term lease obligations, including
their current portion are as follows:

As of December 31, 2023 Carrying amount Fair Value

Level 1 Level 2 Level 3 Total
Instruments payable bearing interest at fixed rates 8,165 6,969 1,273 — 8,242
Instruments payable bearing interest at variable rates 1,536 — 1,539 — 1,539
Total long-term debt, including current portion 9,701 6,969 2,812 — 9,781
Short term bank loans and other credit facilities including
commercial paper 980 — 988 — 988

As of December 31, 2022 Carrying amount Fair Value

Level 1 Level 2 Level 3 Total
Instruments payable bearing interest at fixed rates 9,214 7,783 1,180 — 8,963
Instruments payable bearing interest at variable rates 1,419 — 1,350 — 1,350
Total long-term debt, including current portion 10,633 7,783 2,530 — 10,313
Short term bank loans and other credit facilities including
commercial paper 1,017 — 1,017 — 1,017

Instruments payable classified as Level 1 refer to the

Company’s listed bonds quoted in active markets. The total fair 6.1.3 Cash and cash equivalents, restricted cash and
value is the official closing price as defined by the exchange on reconciliations of cash flows
which the instrument is most actively traded on the last trading Cash and cash equivalents consist of cash and short-term
day of the period, multiplied by the number of units held without highly liquid investments that are readily convertible to cash with
consideration of transaction costs. original maturities of three months or less at the time of
purchase and are carried at cost plus accrued interest, which
Instruments payable classified as Level 2 refer to all debt approximates fair value.
instruments not classified as Level 1. The fair value of the debt
is based on estimated future cash flows converted into U.S. Cash and cash equivalents are primarily centralized at the
dollar at the forward rate and discounted using current U.S. parent level and are managed by ArcelorMittal Treasury SNC,
dollar zero coupon rates and ArcelorMittal’s credit spread although from time to time cash or cash equivalent balances
quotations for the relevant maturities. There were no may be held at the Company’s international subsidiaries or its
instruments payable classified as Level 3. holding companies. Some of these operating subsidiaries have
debt outstanding or are subject to acquisition agreements that
305
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

impose restrictions on such operating subsidiaries’ ability to pay deposits, cash accounts in connection with environmental
dividends, but such restrictions are not significant in the context obligations and true sale of receivables programs, as well as
of ArcelorMittal’s overall liquidity. Repatriation of funds from various other deposits or required balance obligations related to
operating subsidiaries may also be affected by tax and foreign letters of credit and credit arrangements.
exchange policies in place from time to time in the various
countries where the Company operates, though none of these Restricted cash of 97 as of December 31, 2023 and 114 as of
policies are currently significant in the context of ArcelorMittal’s December 31, 2022 included 54 and 52 relating to various
overall liquidity. environmental obligations, true sales of receivables programs
and letters of credit issued in ArcelorMittal South Africa. It also
Cash and cash equivalents consisted of the following: included 13 and 20 in connection with the mandatory convertible
bonds as of December 31, 2023 and December 31, 2022,
December 31, respectively (see note 11.2).
2023 2022
Changes in restricted cash are included within investing
Cash at bank 5,405 4,489
activities in the consolidated statements of cash flows.
Term deposits 774 828
Money market funds1 1,507 3,983 Reconciliation of liabilities arising from financing activities
Total 7,686 9,300
The table below details changes in the Company's liabilities
1 Money market funds are highly liquid investments with a maturity of 3 months arising from financing activities, including both cash and non-
or less from the date of acquisition. cash changes. Liabilities arising from financing activities are
those for which cash flows were, or future cash flows will be
Restricted cash represents cash and cash equivalents not classified in the Company's consolidated statements of cash
readily available to the Company, mainly related to insurance flows from financing activities.

Long-term debt, net of current Short-term debt and current

portion portion of long term debt
Balance as of December 31, 2021 (note 6.1.2) 6,488 1,913
Proceeds from long-term debt 3,893 —
Payments of long-term debt — —
Amortized cost 2 2
Proceeds from short-term debt — 434
Payments of short-term debt — (1,044)
Current portion of long-term debt (1,566) 1,566
Payments of principal portion of lease liabilities (note 7) 1 (10) (175)
Additions to lease liabilities (notes 5.2 and 7) 318 100
Unrealized foreign exchange effects and other movements (58) (213)
Balance as of December 31, 2022 (note 6.1.2) 9,067 2,583
Proceeds from long-term debt 134 —
Payments of long-term debt (16) —
Amortized cost 8 (3)
Proceeds from short-term debt — 218
Payments of short-term debt — (1,670)
Current portion of long-term debt (1,332) 1,332
1
Payments of principal portion of lease liabilities (note 7) (8) (245)
Additions to lease liabilities (notes 5.2 and 7) 250 38
Unrealized foreign exchange effects and other movements 266 59
Balance as of December 31, 2023 (note 6.1.2) 8,369 2,312

1. Cash payments decreasing the outstanding liability relating to leases are classified under payments of principal portion of lease liabilities and other financing activities in
the Company's consolidated statements of cash flows.

306
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

6.1.4 Net debt

The Company monitors its net debt in order to manage its capital. The following tables present the structure of the Company’s net debt
by original currency translated into USD at December 31, 2023 and December 31, 2022:

As of December 31, 2023 Total EUR USD ARS BRL INR Other
Short-term debt and current portion of long-term debt 2,312 1,414 533 — 31 68 266
Long-term debt, net of current portion 8,369 3,312 4,560 — 86 1 410
Cash and cash equivalents and restricted cash (7,783) (5,660) (886) (461) (171) (62) (543)
Net debt 2,898 (934) 4,207 (461) (54) 7 133

As of December 31, 2022 Total EUR USD ARS BRL INR Other
Short-term debt and current portion of long-term debt 2,583 2,059 227 — 28 2 267
Long-term debt, net of current portion 9,067 3,777 4,868 — 74 — 348
Cash and cash equivalents, restricted cash and other
restricted funds (9,414) (6,514) (1,494) (364) (275) (85) (682)
Net debt 2,236 (678) 3,601 (364) (173) (83) (67)

6.1.5 Derivative financial instruments instrument is sold, terminated, expired or exercised, the
The Company uses derivative financial instruments principally to accumulated gain or loss on the hedging instrument is
manage its exposure to fluctuations in interest rates, exchange maintained in equity until the forecasted transaction occurs. If
rates, prices of raw materials, energy and emission rights the hedged transaction is no longer probable, the cumulative
allowances arising from operating, financing and investing gain or loss, which had been recognized in equity, is reported
activities. Derivative financial instruments are classified as immediately in the consolidated statements of operations.
current or non-current assets or liabilities based on their maturity
dates and are accounted for at the trade date. Embedded Foreign currency differences arising on the translation of a
derivatives are separated from the host contract and accounted financial liability designated as a hedge of a net investment in a
for separately if they are not closely related to the host contract. foreign operation are recognized directly as a separate
The Company measures all derivative financial instruments component of equity, to the extent that the hedge is effective. To
based on fair values derived from market prices of the the extent that the hedge is ineffective, such differences are
instruments or from option pricing models, as appropriate. Gains recognized in the consolidated statements of operations (see
or losses arising from changes in fair value of derivatives are note 6.3 Net investment hedge).
recognized in the consolidated statements of operations, except
The Company manages the counter-party risk associated with
for derivatives that are designated and qualify for cash flow or
its instruments by centralizing its commitments and by applying
net investment hedge accounting.
procedures which specify, for each type of transaction and
Changes in the fair value of a derivative that is designated and underlying position, risk limits and/or the characteristics of the
qualifies as a cash flow hedge are recorded in other counter-party. The Company does not generally grant to or
comprehensive income. Amounts deferred in equity are require guarantees from its counterparties for the risks incurred.
recorded in the consolidated statements of operations in the Allowing for exceptions, the Company’s counterparties are part
periods when the hedged item is recognized in the consolidated of its financial partners and the related market transactions are
statements of operations and within the same line item (see governed by framework agreements (mainly International
note 6.3 Cash flow hedges). Swaps and Derivatives Association agreements which allow
netting only in case of counterparty default). Accordingly,
The Company formally assesses, both at the hedge’s inception derivative assets and derivative liabilities are not offset.
and on an ongoing basis, whether the derivatives that are used
in hedging transactions are effective in offsetting changes in fair
values or cash flows of hedged items. When a hedging

307
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Derivative financial instruments classified as Level 2:

The following tables summarize this portfolio:

December 31, 2023

Assets Liabilities
Notional Notional
Amount Fair Value Amount Fair Value
Interest rate instruments
Other interest rate instruments 221 — 453 —
Total interest rate instruments — —

Foreign exchange rate instruments

Forward purchase contracts 1,198 60 4,114 (82)
Forward sale contracts 2,510 53 825 (11)
Exchange option purchases 619 34 760 (3)
Exchange options sales 920 19 608 (46)
Total foreign exchange rate instruments 166 (142)

Raw materials (base metals), freight, energy, emission rights

Term contracts sales 1,350 373 486 (46)
Term contracts purchases 1,538 267 1,235 (166)
Options sales/purchases 18 — — —
Total raw materials (base metals), freight, energy, emission rights 640 (212)
Total 806 (354)

December 31, 2022

Assets Liabilities
Notional Notional
Amount Fair Value Amount Fair Value
Foreign exchange rate instruments
Forward purchase contracts 657 58 3,678 (19)
Forward sale contracts 1,478 38 753 (6)
Exchange option purchases 1,462 17 2,536 (16)
Exchange options sales 2,222 41 2,055 (20)
Total foreign exchange rate instruments 154 (61)

Raw materials (base metals), freight, energy, emission rights

Term contracts sales 1,128 263 316 (52)
Term contracts purchases 1,755 1,150 785 (306)
Option sales/purchases 207 5 197 (5)
Total raw materials (base metals), freight, energy, emission rights 1,418 (363)
Total 1,572 (424)

308
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

In 2022, the Company unwound natural gas and emission rights option’s expiration date. In contrast to the Black-Scholes model,
forward purchase contracts with notional of €0.3 billion and €0.7 which provides a numerical result based on inputs, the binomial
billion, respectively, and carrying amount of 1,025 and 1,086, model allows for the calculation of the asset and the option for
respectively, designated as a cash flow hedge of future natural multiple periods along with the range of possible results for each
gas and emission rights purchases. The deferred gain period.
recognized in other comprehensive income will be recycled to
the consolidated statements of operations when the hedged Observable input data used in the valuations include zero
item impacts profit or loss (see note 6.3). In addition, at maturity coupon yield curves, stock market price, European Central Bank
of forward purchases of emission rights with notional amount of foreign exchange fixing and SOFR Term curve interest rates.
€0.7 billion and carrying amount of 1,408 designated as a cash Unobservable inputs are used to measure fair value to the
flow hedge of future emission rights purchases, the Company (i) extent that relevant observable inputs are not available.
removed 1,268 (953 net of tax) deferred gain recognized in Specifically, the Company computed unobservable volatility data
other comprehensive income from the cash flow hedge reserve during 2023 based mainly on the movement of China Oriental
(see note 6.3) and included it in the 671 carrying amount of the stock market prices observable in the active market over 90
delivered emission rights as basis adjustment (see note 5.1) and working days, which is particularly sensitive for the valuation
(ii) recycled 140 (104 net of tax) to the consolidated statements resulting from the model. A 10% increase or decrease in Hera
of operations in cost of sales (see note 6.3). Ermac share prices would result in a 1027% and 96% increase
and decrease of the fair value of the call option at December 31,
Derivative financial assets and liabilities classified as Level 2: 2023, respectively.
Refer to instruments to hedge fluctuations in interest rates,
foreign exchange rates, raw materials (base metals), freight, Electricity option
energy and emission rights. The total fair value is based on the ArcelorMittal and an electricity supplier entered into a multi-
price a dealer would pay or receive for the security or similar buyer power supply contract on French market. Other clients of
securities, adjusted for any terms specific to that asset or this contract are committed to purchase electricity from the
liability. Market inputs are obtained from well-established and supplier with opt-out rights to be exercised in 2024 for
recognized vendors of market data and the fair value is 2025-2029 delivery period and in 2029 for 2030-2034 delivery
calculated using standard industry models based on significant period. The Company is committed to acquire up to 51% of the
observable market inputs such as foreign exchange rates, opt-out volumes.
commodity prices, swap rates and interest rates.
The fair value of the option is based on the Black-Scholes
Derivative financial instruments classified as Level 3: formula model. Observable input data used in the valuation
The fair valuation of Level 3 derivative instruments is include euro zero coupon yield curve and electricity forward
established at each reporting date and compared to the prior prices for tenors quoted by the European Energy Exchange
period. ArcelorMittal’s valuation policies for Level 3 derivatives (EEX). Unobservable input data is used to measure fair value to
are an integral part of its internal control procedures and have the extent relevant observable inputs are not available. For
been reviewed and approved according to the Company’s instance, electricity forward prices are extrapolated for tenors
principles for establishing such procedures. In particular, such not quoted by EEX and volatility is computed based on historical
procedures address the accuracy and reliability of input data, settlement prices over the last 3 years. A 10% increase and
the accuracy of the valuation model and the knowledge of the decrease in electricity forward prices would result in a 19%
staff performing the valuations. decrease and 26% increase, respectively, of the fair value of the
option at December 31, 2023.
Call option on MCB
ArcelorMittal establishes the fair valuation of the call option on The following table summarizes the reconciliation of the fair
the 660 mandatory convertible bonds (on March 14, 2023, the value of the financial instrument classified as Level 3:
Company through its wholly-owned subsidiary Hera Ermac early
repaid 226,666 out of the 666,666 outstanding unsecured and Call option on 660
unsubordinated bonds mandatorily convertible into preferred mandatory
Electricity option convertible bonds
shares of such subsidiary (see note 11.2) through the use of
Balance as of December 31, 2021 — 15
binomial valuation models based on the estimated values of the
Change in fair value — (15)
underlying equity spot price of $102 ($127 at December 31,
2022) and volatility of 10% (13% at December 31, 2022). Balance as of December 31, 2022 — —
Binomial valuation models use an iterative procedure to price Change in fair value (82) —
options, allowing for the specification of nodes, or points in time, Balance as of December 31, 2023 (82) —
during the time span between the valuation date and the
309
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

The fair value movement relating to the Level 3 derivative instruments at FVOCI, in which all fair value movements are
instrument is recognized in financing costs-net in the recognized in OCI.
consolidated statements of operations .
6.2 Financing costs - net
6.1.6 Other non-derivative financial assets and liabilities Financing costs - net recognized in the years ended
Other non-derivative financial assets and liabilities include cash December 31, 2023, 2022 and 2021 are as follows:
and cash equivalents and restricted cash (see note 6.1.3),
certain trade and certain other receivables (see note 4.3, 4.5 Year ended December 31,
and 4.6), investments in equity instruments at FVOCI (see note
2023 2022 2021
2.5), trade payables and certain other liabilities (see notes 4.7
Interest expense (715) (401) (357)
and 4.8). These instruments are recognized initially at fair value
when the Company becomes a party to the contractual Interest income 570 188 79

provisions of the instrument. Non-derivative financial assets are Change in fair value
derecognized if the Company’s contractual rights to the cash adjustment on call option on — (15) (44)
mandatory convertible bonds
flows from the financial instruments expire or if the Company
transfers the financial instruments to another party without Accretion of defined benefit
obligations and other long term (243) (51) (164)
retaining control of substantially all risks and rewards of the liabilities
instruments. Non-derivative financial liabilities are derecognized Net foreign exchange gain/ (48) 191 (155)
(loss)
when they are extinguished (i.e. when the obligation specified in
Other1 (423) (246) (514)
the contract is discharged, canceled or expired).
Total (859) (334) (1,155)
Impairment of financial assets
In relation to the impairment of financial assets, an expected 1. Other mainly included expenses related to true sale of receivables (“TSR”)
programs and bank fees. In 2023, others included 66 relating to the term
credit loss ("ECL") model is required. The ECL model requires
extension of mandatorily convertible bonds (see note 11.2). In 2021, other also
the Group to account for expected credit losses and changes in included 163 charges related to an unfavorable court decision in an arbitration
those ECL at each reporting date to reflect changes in credit risk case against Sitrel (see note 9.3), 130 premiums and fees related to the early
since initial recognition of the financial assets. In particular, the redemption of bonds in 2021, and 61 charges related to early redemption of
MCNs (see note 11.2).
Company measures the loss allowance for a financial
instrument at an amount equal to the lifetime ECL if the credit 6.3 Risk management policy
risk on that financial instrument has increased significantly since The Company's operations expose it to a variety of financial
initial recognition. Receivables aged 31 days or older and risks: interest rate risk, foreign exchange risk, liquidity risk and
uninsured trade receivables remain consistent with historical risks in fluctuations in prices of raw materials, freight, energy
levels and the Company did not identify any expected increased and CO2 emissions. The Company actively monitors and seeks
risk of default (note 4.3). to reduce volatility of these exposures through a diversity of
financial instruments, where considered appropriate. The
All fair value movements for investments in equity instruments at Company has formalized how it manages these risks within the
FVOCI, including the difference between the acquisition cost Treasury and Financial Risk Management Policy, which has
and the current fair value, are recorded in OCI and are not been approved by Management.
reclassified to the consolidated statements of operations.
Investments in equity instruments at FVOCI are exempt from the Capital management
impairment test because the fair value of the investment is The Company's objective when managing capital is to
recorded in OCI and not reclassified to profit and loss. safeguard continuity, maintain a strong credit rating and healthy
capital ratios to support its business and provide adequate
Financial assets are tested for ECLs annually or whenever
return to shareholders through continuing growth.
changes in circumstances indicate that there is a change in
credit risk. Any ECL is recognized in the consolidated The Company sets the amount of capital required on the basis
statements of operations. An ECL related to financial assets is of annual business and long-term operating plans which include
reversed if and to the extent there has been a change in the capital and other strategic investments. The funding requirement
factors used to determine the recoverable amount. The loss is is met through a combination of equity, bonds and other long-
reversed only to the extent that the asset’s carrying amount term and short-term borrowings.
does not exceed the carrying amount that would have been
determined if no ECL had been recognized. Reversals of ECLs The Company monitors capital using a gearing ratio, being the
are recognized in net income, except for investments in equity ratio of net debt as a percentage of total equity.

310
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Following its Treasury and Financial Risk Management Policy,

December 31,
the Company hedges a portion of its net exposure to foreign
2023 2022
exchange rates through forwards, options and swaps.
Total equity 56,068 55,590
Net debt 2,898 2,236 ArcelorMittal also faces foreign currency translation risk, which
Gearing 5.2 % 4.0 % arises when ArcelorMittal translates the statements of
operations of its subsidiaries, its corporate net debt (note 6.1.4)
Interest rate risk and other items denominated in currencies other than the U.S.
The Company is exposed to interest rate risk on short-term and dollar, for inclusion in the consolidated financial statements. The
long-term floating rate instruments and on refinancing of fixed Company manages translation risk arising from its investments
rate debt. The Company's policy is to maintain a balance of in subsidiaries by monitoring the currency mix of the
fixed and floating interest rate borrowings, which is adjusted consolidated statements of financial position. The Company
depending on the prevailing market interest rates and outlook. may enter into derivative transactions to hedge the residual
As at December 31, 2023, the long-term debt was comprised of exposure (see “Net investment hedge”).
84% fixed rate debt and 16% variable rate debt (note 6.1.2). The
The Company also uses derivative instruments at the corporate
Company may utilize certain instruments to manage interest
level to hedge debt recorded in foreign currency other than the
rate risks. Interest rate instruments allow the Company to
functional currency or the balance sheet risk associated with
borrow long-term at fixed or variable rates, and to swap the rate
certain monetary assets denominated in a foreign currency
of this debt either at inception or during the lifetime of the
other than the functional currency.
borrowing. The Company and its counterparties exchange, at
predefined intervals, the difference between the agreed fixed Foreign currency sensitivity analysis
rate and the variable rate, calculated on the basis of the notional As of December 31, 2023, the Company is mainly subject to
amount of the swap. Similarly, swaps may be used for the foreign exchange exposure relating to the euro, Brazilian real,
exchange of variable rates against other variable rates. Canadian dollar, South African rand, Mexican peso, Polish zloty,
Argentine peso and Ukrainian hryvnia against the U.S. dollar
Foreign exchange rate risk
resulting from its trade payables and receivables. The structure
The Company is exposed to changes in values arising from
of trade receivables and trade payables by original currency
foreign exchange rate fluctuations generated by its operating
translated in USD is as follows as of December 31, 2023:
activities. Because a substantial portion of ArcelorMittal’s
assets, liabilities, sales and earnings are denominated in
December 31, 2023
currencies other than the U.S. dollar (its reporting currency),
Trade
ArcelorMittal has an exposure to fluctuations and depreciation in receivables Trade payables
the values of these currencies relative to the U.S. dollar. These
USD 776 4,989
currency fluctuations, especially the fluctuation of the value of
EUR 928 5,531
the U.S. dollar relative to the euro, the Canadian dollar, Brazilian
real, Polish Zloty, South African rand, Mexican peso and BRL 1,111 823
Ukrainian hryvnia, as well as fluctuations in the other countries’ CAD 49 512
currencies in which ArcelorMittal has significant operations and/ GBP 27 104
or sales, could have a material impact on its financial position, ZAR 139 382
cash flows and results of operations. MXN 39 53

ArcelorMittal faces transaction risk, where its businesses UAH 63 164

generate sales in one currency but incur costs relating to that PLN 211 697
revenue in a different currency. For example, ArcelorMittal’s ARS 51 62
subsidiaries may purchase raw materials, including iron ore and Other 267 288
coking coal, in U.S. dollar, but may sell finished steel products in Total 3,661 13,605
other currencies. Consequently, an appreciation of the U.S.
dollar will increase the cost of raw materials; thereby having a The sensitivity analysis carried out by the Company considers
negative impact on the Company’s operating margins, unless the effects on its trade receivables and trade payables of a 10%
the Company is able to pass along the higher cost in the form of increase or decrease between the relevant foreign currencies
higher selling prices. and the U.S. dollar.

311
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

program in the risk management objective. Hedge ratios below

10% increase 10% decrease
100% would usually be applied on hedging of forecast
Trade Trade Trade Trade
receivables payables receivables payables exposures with the hedge ratio typically reducing where there is
EUR 93 553 (93) (553) uncertainty due to long hedging tenors or volatility in the
BRL 111 82 (111) (82)
underlying exposure.

CAD 5 51 (5) (51) The most frequent sources of hedge ineffectiveness relate to
GBP 3 10 (3) (10) changes in the hedged item (such as maturity, volume and
ZAR 14 38 (14) (38) pricing indices), basis spread and significant changes in the
MXN 4 5 (4) (5) credit risk. Such sources are analyzed at hedge initiation and
UAH 6 16 (6) (16)
monitored throughout the life of a hedge.

PLN 21 70 (21) (70) Liquidity Risk

ARS 5 6 (5) (6) Liquidity risk is the risk that the Company may encounter
difficulties in meeting its obligations associated with financial
The use of a 10% sensitivity rate is used when reporting foreign liabilities that are settled by delivering cash. ArcelorMittal
currency exposure internally to key management personnel and Treasury is responsible for the Company's funding and liquidity
represents management’s assessment of the reasonably management. ArcelorMittal’s principal sources of liquidity are
possible change in foreign exchange rates. The sensitivity cash generated from its operations, its credit lines at the
analysis includes trade receivables and trade payables corporate level and various working capital credit lines at the
denominated in a currency other than the U.S. dollar and level of its operating subsidiaries. The Company actively
adjusts their translation at the period end for a 10% change in manages its liquidity. Following the Company's Treasury and
foreign currency rates. For trade receivables, a positive number Financial Risk Management Policy, the levels of cash, credit
indicates an income and a negative number an expense. For lines and debt are closely monitored and appropriate actions are
trade payables, a positive number indicates an expense and a taken in order to comply with the covenant ratios, leverage,
negative number an income. fixed/floating ratios, maturity profile and currency mix.

Hedge accounting policy The contractual maturities of the below financial liabilities
include estimated loan repayments, interest payments and
The Company determines the economic relationship between
settlement of derivatives, excluding any impact of netting
the hedged item and the hedging instrument by analyzing the
agreements. The cash flows are calculated based on market
critical terms of the hedge relationship. In case critical terms do
data as of December 31, 2023, and as such are sensitive to
not match and fair value changes in the hedging instrument
movements in mainly foreign exchange rates and interest rates.
cannot be expected to perfectly offset changes in the fair value
The cash flows are non-discounted, except for derivative
of the hedged item, further qualitative analysis may be
financial liabilities where the cash flows equal their fair values.
performed. Such analysis serves to establish whether the
economic relationship is sufficiently strong to comply with the
Company’s risk management policies.

The hedge ratio is set out in the Company's risk management

strategy and may be individually tailored for each hedging

312
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

December 31, 2023

Carrying Contractual from 2026 to
amount Cash Flow 2024 2025 2028 After 2028
Non-derivative financial liabilities
Bonds (6,812) (9,393) (1,223) (1,329) (2,963) (3,878)
Loans over 100 (1,345) (1,942) (237) (457) (462) (786)
Trade and other payables (13,605) (13,605) (13,605) — — —
Other loans and leases (2,525) (2,931) (1,333) (339) (665) (594)
Total (24,287) (27,871) (16,398) (2,125) (4,090) (5,258)
Derivative financial liabilities
Foreign exchange contracts (142) (142) (139) (1) (2) —
1
Commodity contracts (294) (294) (221) (19) — (54)
Total (436) (436) (360) (20) (2) (54)

1. Commodity contracts include base metals, freight, energy and emission rights.

December 31, 2022

Carrying Contractual from 2025
amount Cash Flow 2023 2024 to 2027 After 2027
Non-derivative financial liabilities
Bonds (7,926) (10,341) (1,547) (1,171) (3,969) (3,654)
Loans over 100 (1,234) (1,364) (244) (114) (827) (179)
Trade and other payables (13,532) (13,554) (13,554) — — —
Other loans and leases (2,490) (3,175) (1,247) (314) (589) (1,025)
Total (25,182) (28,434) (16,592) (1,599) (5,385) (4,858)
Derivative financial liabilities
Foreign exchange contracts (61) (61) (57) — (4) —
1
Commodity contracts (363) (363) (322) (22) (19) —
Total (424) (424) (379) (22) (23) —

1. Commodity contracts include base metals, freight, energy and emission rights.

Cash flow hedges

The following tables present the periods in which the derivatives designated as cash flows hedges are expected to mature:

December 31, 2023

Assets/
(liabilities) (Outflows)/inflows
3 months and
Fair value less 3-6 months 6-12 months 2025 After 2025
Foreign exchange contracts (38) (3) (34) (1) — —
Commodities 412 50 70 171 60 61
Emission rights — — — — — —
Total 374 47 36 170 60 61

313
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

December 31, 2022

Assets/
(liabilities) (Outflows)/inflows
3 months and
Fair value less 3-6 months 6-12 months 2024 After 2024
Foreign exchange contracts 4 (2) (3) — 9 —
Commodities 1,003 (10) 63 175 419 356
Emission rights 53 1 1 51 — —
Total 1,060 (11) 61 226 428 356

Associated gains or losses that were recognized in other comprehensive income are reclassified to the consolidated statements of
operations in the same period during which the hedged forecasted cash flow affects the consolidated statements of operations. The
following table presents the periods in which the realized and unrealized gains or losses on derivatives designated as cash flows
hedges recognized in other comprehensive income, net of tax, are expected to impact the consolidated statements of operations:

December 31, 2023

Cash flow hedge
reserve1 (Expense)/income
3 months and
Carrying amount less 3-6 months 6-12 months 2025 After 2025
Foreign exchange contracts 28 5 2 10 11 —
Commodity contracts 633 35 69 169 233 127
Emission rights 900 — — — — 900
Total 1,561 40 71 179 244 1,027

1. The cash flow hedge reserve balance as of December 31, 2023 includes 417 deferred gains for the Company's share of such reserves at its equity method investments,
which are not included in the table above (1,023 as of December 31, 2022).

December 31, 2022

Cash flow hedge
reserve1 (Expense)/income
3 months and
Carrying amount less 3-6 months 6-12 months 2024 After 2024
Foreign exchange contracts 13 — 2 4 7 —
Commodity contracts 1,020 7 37 157 387 432
Emission rights 849 — — — — 849
Total 1,882 7 39 161 394 1,281

1. The cash flow hedge reserve balance as of December 31, 2022 also includes 1,023 deferred gains for the Company's share of such reserves at its equity method
investments, which are not included in the table above (603 as of December 31, 2021).

314
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

The following tables summarize the effect of hedge accounting on ArcelorMittal’s consolidated statement of financial position, statement
of comprehensive income and statement of changes in equity.

December 31, 2023

Nominal amount of Assets Liabilities Line item in the statement of financial
Hedging Instruments the hedging carrying carrying position where the hedging instrument
instrument amount amount is located
Cash flow hedges
Prepaid expenses and other current
Foreign exchange risk - Option/forward/swap 2,840 12 (50) assets/Accrued expenses and other
contracts liabilities
Foreign exchange risk - Option/forward/swap Other assets/Other long-term
— — —
contracts obligations
Prepaid expenses and other current
Price risk - Commodities forwards 1,118 361 (70) assets/Accrued expenses and other
liabilities
Other assets/Other long-term
Price risk - Commodities forwards 524 127 (6) obligations
Prepaid expenses and other current
Price risk - Emission rights forwards — — — assets/Accrued expenses and other
liabilities
Total 500 (126)
Current derivative assets classified as cash flow 373
hedge
Other current derivative assets 270
Total current derivative assets (note 4.5) 643
Non-current derivative assets classified as cash flow
hedge 127
Other non-current derivative assets 36
Total non-current derivative assets (note 4.6) 163
Current derivative liabilities classified as cash flow (120)
hedge
Other current derivative liabilities (240)
Total current derivative liabilities (note 4.8) (360)
Non-current derivative liabilities classified as cash (6)
flow hedge
Other non-current derivative liabilities (70)
Total non-current derivative liabilities (note 9.2) (76)

December 31, 2023

Line item in the
Hedging statement of
gains or Gains or
Cash flow comprehensive Cash flow
losses of the losses
hedge income that hedge
reporting reclassification Basis
Hedging Instruments reserve at includes the reserve1 at
period that adjustment adjustment
December 31, reclassification December 31,
were and hedge
2022 adjustment and 2023
recognized in ineffectiveness hedge
OCI ineffectiveness
Cash flow hedges

Foreign exchange risk - Option/Forward contracts 13 16 (17) 16 Sales

28
Sales, Cost of
Price risk - Commodities Option/Forward contracts 1,020 (402) (10) 25 sales 633
Price risk - Emission rights forwards 849 54 (3) — Cost of sales 900
Total 1,882 (332) (30) 41 1,561
1. The cash flow hedge reserve balance as of December 31, 2023 also includes 417 deferred gains for the Company's share of such reserves at its equity method
investments, which are not disclosed above.

315
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

December 31, 2022

Nominal amount of Liabilities
Assets carrying Line item in the statement of financial position where
Hedging Instruments the hedging carrying
amount the hedging instrument is located
instrument amount
Cash flow hedges
Foreign exchange risk - Option/ Prepaid expenses and other current assets/Accrued
3,044 21 (26)
Forward contracts expenses and other liabilities
Foreign exchange risk - Option/ (3)
Forward/Swap contracts 300 12 Other assets/Other long-term obligations
Prepaid expenses and other current assets/Accrued
Price risk - Commodities forwards 1,467 490 (261) expenses and other liabilities
Price risk - Commodities forwards 1,533 816 (42) Other assets/Other long-term obligations
Price risk - Emission rights Prepaid expenses and other current assets/Accrued
488 53 —
forwards expenses and other liabilities
Total 1,392 (332)
Current derivative assets classified 564
as cash flow hedge
Other current derivative assets 173
Total current derivative assets 737
(note 4.5)
Non-current derivative assets 828
classified as cash flow hedge
Other non-current derivative assets 7
Total non-current derivative assets 835
(note 4.6)
Current derivative liabilities (287)
classified as cash flow hedge
Other current derivative liabilities (92)
Total current derivative liabilities (379)
(note 4.8)
Non-current derivative liabilities (45)
classified as cash flow hedge
Other non-current derivative —
liabilities
Total non-current derivative (45)
liabilities (note 9.2) .

December 31, 2022

Line item in the
Hedging statement of
gains or Gains or losses comprehensive
Cash flow hedge losses of the Cash flow hedge
reclassification income that
reserve at reporting Basis reserve1 at
Hedging Instruments adjustment and includes the
December 31, period that adjustment December 31,
hedge reclassification
2021 were 2022
ineffectiveness adjustment and
recognized in hedge
OCI ineffectiveness
Cash flow hedges
Foreign exchange risk - Option/ (1) 146 4 (136) Sales
Forward contracts 13
Sales, Cost of
Price risk - Commodities forwards1 302 951 (153)
(80) sales 1,020
Price risk - Emission rights forwards 1,786 120 (104) (953) Cost of sales 849
Total 2,087 1,217 (253) (1,169) 1,882

1. The cash flow hedge reserve balance as of December 31, 2022 also includes 1,023 deferred gains for the Company's share of such reserves at its equity method
investments, which are not disclosed above

316
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Net investment hedge currency swaps ("CCS"). These CCS, all of which have been
The Company designated a portfolio of euro denominated debt unwound, were designated as net investment hedges. The
as a hedge of certain euro denominated investments (see also hedging instrument is categorized as Level 2.
note 6.1.2.2.)
The following tables summarizes the historical gain/loss that will
The Company has periodically hedged a part of its euro be recycled to the consolidation statements of operations when
denominated net investments via euro/U.S. dollar cross the hedged assets are disposed of.

December 31, 20231

OCI net of deferred
Date traded Date maturity /unwound Notional OCI gross Deferred tax tax
December, 2014 January, 2016 375 83 (24) 59
May, 2015 March, 2020 500 11 (3) 8
May, 2015 July, 2019 500 (16) 5 (11)
March, 2018 June, 2018 100 8 (2) 6
April, 2019 November, 2019 200 11 (3) 8
Total 97 (27) 70

1. In 2023 and in 2022, the Company did not designate any new CCS as net investment hedge.

December 31, 2023

Line item in the Line item in the
Change in
statement of statement of
Nominal value used for Foreign
Assets Liabilities financial position comprehensive
amount of calculating currency
Hedging Instruments carrying carrying where the income that
the hedging hedge translation
amount amount hedging includes the
instrument ineffectiveness reserve
instrument is recognized hedge
for 2021
located ineffectiveness
Net investment hedges
Foreign exchange risk - — — — N/a — N/a 70
Cross Currency Swap
Short-term debt
and current
Foreign exchange risk - portion of long-
4,017 — 4,009 — N/a 332
EUR debt term debt; long-
term debt, net of
current portion
Total 4,017 — 4,009 — 402

December 31, 2022

Line item in the
Line item in the Change in statement of
Nominal statement of value used for Foreign
Assets Liabilities comprehensive
amount of financial position calculating currency
Hedging Instruments carrying carrying income that includes
the hedging where the hedging hedge translation
amount amount the recognized
instrument instrument is ineffectiveness reserve
hedge
located for 2020 ineffectiveness
Net investment hedges
Foreign exchange risk - — — — N/a — N/a 70
Cross Currency Swap
Short-term debt
and current portion
Foreign exchange risk - EUR 5,196 — (5,186) of long-term debt; — N/a 456
debt long-term debt, net
of current portion
Total 5,196 — (5,186) — 526

317
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Raw materials, freight, energy risks and emission rights

The Company is exposed to risks in fluctuations in prices of raw materials (including base metals such as zinc, nickel, aluminum, tin,
copper and iron ore), freight and energy, both through the purchase of raw materials and through sales contracts. The Company uses
financial instruments such as forward purchases or sales, options and swaps in order to manage the volatility of prices of certain raw
materials, freight and energy.

Fair values of raw material, freight, energy and emission rights instruments categorized as Level 2 are as follows:

December 31,
2023 2022
Base metals (3) 5
Freight 12 (1)
Energy (oil, gas, electricity) 401 998
Emission rights 18 53
Total 428 1,055

Derivative assets associated with raw materials, energy, freight and emission rights 640 1,418
Derivative liabilities associated with raw materials, energy, freight and emission rights (212) (363)
Total 428 1,055

ArcelorMittal consumes large amounts of raw materials (the

prices of which are related to the London Metals Exchange price Sensitivity analysis
index, the Steel Index and Platts Index), ocean freight (the price Foreign currency sensitivity
of which is related to a Baltic Exchange Index), and energy (the The following tables detail the Company’s derivative financial
prices of which are mainly related to the New York Mercantile instruments' sensitivity to a 10% strengthening and a 10%
Exchange energy index (NYMEX) and the EEX power indexes). weakening in the U.S. dollar against the euro. A positive number
As a general matter, ArcelorMittal is exposed to price volatility indicates an increase in profit or loss and other equity, where a
with respect to its purchases in the spot market and under its negative number indicates a decrease in profit or loss and other
long-term supply contracts. In accordance with its risk equity.
management policy, ArcelorMittal hedges a part of its exposure
related to raw materials procurement. The sensitivity analysis includes the Company’s complete
portfolio of foreign currency derivatives outstanding. The impact
Emission rights on the non-euro derivatives reflects the estimated move of such
Pursuant to the application of the European Directive 2003/87/ currency pairs, when the U.S. dollar appreciates or depreciates
EC of October 13, 2003, as amended by the European Directive 10% against the euro, based on computations of correlations in
2009/29/EC of April 23, 2009, establishing a scheme for the foreign exchange markets in 2023 and 2022.
emission allowance trading, the Company enters into certain
types of derivatives (mainly forward transactions and options) in December 31, 2023
order to implement its management policy for associated risks. Income
(loss) Other Equity
As of December 31, 2023 and 2022, the Company had a net
10% strengthening in U.S. dollar 68 283
notional position of 164 with a net positive fair value of 18 and a
10% weakening in U.S. dollar (134) (286)
net notional position of 488 with a net positive fair value of 53,
respectively.
December 31, 2022
Credit risk
(loss)
The Company’s treasury department monitors various market
Income Other Equity
data regarding the credit standings and overall reliability of the
10% strengthening in U.S. dollar 136 141
financial institutions for all countries where the Company’s
subsidiaries operate. The choice of the financial institution for 10% weakening in U.S. dollar (141) (153)
the financial transactions must be approved by the treasury
department. Credit risk related to customers, customer credit Cash flow sensitivity analysis for variable rate instruments
terms and receivables are discussed in note 4.3. The following tables detail the Company’s variable interest rate
instruments’ sensitivity. A change of 100 basis points (“bp”) in
318
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

interest rates during the period would have increased

December 31, 2022
(decreased) profit or loss by the amounts presented below. This
Other Equity Cash Flow
analysis assumes that all other variables, in particular foreign Income (loss) Hedging Reserves
currency rates, remain constant. '+10% in prices
Base Metals 1 21
December 31, 2023 Iron Ore — 5

Floating portion of Interest Rate Swaps/ Freight 1 —

net debt1 Forward Rate Agreements Emission rights — 29
100 bp increase 53 1 Energy 1 145
100 bp decrease (53) (1) '-10% in prices
Base Metals (1) (22)
December 31, 2022 Iron Ore — (5)
Interest Rate Swaps/
Floating portion of Forward Freight (1) —
net debt1 Rate Agreements Emission rights — (29)
100 bp increase 70 — Energy (1) (144)
100 bp decrease (70) —

1. See note 6.1.4 for a description of net debt (including fixed and floating
portion).

Base metals, energy, freight, emissions rights

The following tables detail the Company’s sensitivity to a 10%
increase and decrease in the price of the relevant base metals,
energy, freight and emissions rights. The sensitivity analysis
includes only outstanding, un-matured derivative instruments
either held for trading at fair value through the consolidated
statements of operations or designated in hedge accounting
relationships.

December 31, 2023

Other Equity Cash Flow
Income (loss) Hedging Reserves
'+10% in prices
Base Metals (1) 18
Iron Ore (2) 4
Freight — 3
Emission rights (12) —
Energy — 71
'-10% in prices
Base Metals 1 (18)
Iron Ore 2 (4)
Freight — (3)
Emission rights 12 —
Energy — (71)

319
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

NOTE 7: LEASES change in future lease payments in case of renegotiation,

As a lessee, the Company assesses if a contract is or contains changes of an index or rate or in case of reassessments of
a lease at inception of the contract. A contract is or contains a options.
lease if the contract conveys the right to control the use of an
The right-of-use asset comprises, at inception, the initial lease
identified asset for a period of time in exchange for
liability, any initial direct costs and, when applicable, the
consideration.
obligations to refurbish the asset, less any incentives granted by
The Company recognizes a right-of-use asset and a lease the lessors. The right-of-use asset is subsequently depreciated
liability at the commencement date, except for short-term leases on a straight-line basis to the earlier end of its estimated useful
of twelve months or less and leases for which the underlying life or the end of the lease term or to the end of the estimated
asset is of low value, which are expensed in the consolidated useful life of the underlying asset, if the lease transfers the
statement of operations on a straight-line basis over the lease ownership of the underlying asset to the Company at the end of
term. the lease term or if the cost of the right-of-use asset reflects that
the lessee will exercise a purchase option. Right-of-use assets
The lease liability is initially measured at the present value of the are also subject to testing for impairment if there is an indicator
lease payments that are not paid at the commencement date, that they may be impaired.
discounted using the interest rate implicit in the lease, or, if not
readily determinable, the incremental borrowing rate specific to Variable lease payments not included in the measurement of the
the country, term and currency of the contract. Lease payments lease liabilities are expensed to the consolidated statement of
can include fixed payments, variable payments that depend on operations in the period in which the events or conditions which
an index or rate known at the commencement date, as well as trigger those payments occur.
any extension or purchase options, if the Company is
In the statement of financial position, right-of-use assets and
reasonably certain to exercise these options. The lease liability
lease liabilities are classified, respectively, as part of property,
is subsequently measured at amortized cost using the effective
plant and equipment and short-term/long-term debt.
interest method and remeasured with a corresponding
adjustment to the related right-of-use asset when there is a

Balances for the Company’s lease activities are summarized as follows:

As at December As at December
31, 2023 31, 2022
Lease liabilities 1,146 1,056
Right of-use assets:
Land, buildings and improvements 944 854
Machinery, equipment and others 400 356
Total right-of-use assets 1,344 1,210

Year ended Year ended

December 31, December 31,
2023 2022
Depreciation and impairment charges:
Land, buildings and improvements 154 133
Machinery, equipment and others 81 70
Total depreciation and impairment charges 235 203

Other lease related expenses:

Interest expense on lease liabilities 55 34
Expenses of short-term leases 93 96
Expenses of leases of low-value assets 81 71
Expenses related to variable lease payments not included in the measurement of lease liabilities 68 87

Additions to right-of-use assets 288 418

Lease payments recorded as reduction of lease liabilities and cash outflow from financing activities 253 185

320
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

The Company's lease contracts relate to a variety of assets used in its operational and administrative activities through several units,
such as land, buildings, vehicles, industrial machinery, logistic and commercial facilities and power generation facilities. There are no
sale and lease back transactions and no restrictions or covenants are imposed by the Company's current effective lease contracts.

The maturity analysis of the lease liabilities as of December 31, 2023 and December 31, 2022, is as follows:

December 31, 2023

1 year or less 2-3 years 4-5 years Greater than 5 years TOTAL
Lease liabilities (undiscounted) 278 340 217 1,251 2,086

December 31, 2022

1 year or less 2-3 years 4-5 years Greater than 5 years TOTAL
Lease liabilities (undiscounted) 270 297 183 1,028 1,778

Expenses for variable lease payments relate to rental fees that vary based on the actual level of activities or performance of the
underlying leased assets such as a percentage of sales of the Company's goods through certain leased commercial warehouses and
fixed rental fees per actual unit of output produced or transported by the leased assets.

An estimation of the future cash outflows to which the Company is potentially exposed in relation to those contracts involving variable
lease payments, which are not reflected in the measurement of lease liabilities as of December 31, 2023 and December 31, 2022, is as
follows:

December 31, 2023

1 year or less 2-3 years 4-5 years Greater than 5 years TOTAL
Potential variable lease
payments 70 111 72 61 314

December 31, 2022

1 year or less 2-3 years 4-5 years Greater than 5 years TOTAL
Potential variable lease
payments 76 124 85 83 368

Also, some of the Company's lease contracts have extension and/or termination options as well as residual value guarantees whose
amounts are not reflected in the measurement of the lease liabilities as of December 31, 2023 and December 31, 2022. The potential
addition/(reduction) in future cash outflows to which the Company is exposed in case such options are exercised or the guarantees
required are as shown in the table below:

December 31, 2023

1 year or less 2-3 years 4-5 years Greater than 5 years TOTAL
Potential extension options 1 1 — — 2
Potential termination options — (1) — (1) (2)
Potential residual value guarantees 9 9 6 — 24

December 31, 2022

1 year or less 2-3 years 4-5 years Greater than 5 years TOTAL
Potential extension options 1 2 1 — 4
Potential termination options — (1) — (1) (2)
Potential residual value guarantees 1 2 2 1 6

321
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Undiscounted amounts related to lease contracts not yet commenced and therefore not included in the recognized lease liabilities as of
December 31, 2023 and December 31, 2022, to which the Company is committed are described below:

December 31, 2023

1 year or less 2-3 years 4-5 years Greater than 5 years TOTAL
Leases not yet commenced 4 10 10 69 93

December 31, 2022

1 year or less 2-3 years 4-5 years Greater than 5 years TOTAL
Leases not yet commenced 2 8 9 66 85

There were neither income from subleasing right-of-use assets

nor gains or losses from sales and leaseback for the years As of December 31, 2023, 2022 and 2021, ArcelorMittal did not
ended December 31, 20223 and December 31, 2022. have any outstanding loans or advances to members of its
Board of Directors or key management personnel, and, as of
NOTE 8: PERSONNEL EXPENSES AND DEFERRED December 31, 2023, 2022 and 2021, ArcelorMittal had not given
EMPLOYEE BENEFITS any guarantees for the benefit of any member of its Board of
Directors or key management personnel.
8.1 Employees and key management personnel
As of December 31, 2023, 2022 and 2021, ArcelorMittal had 8.2 Deferred employee benefits
approximately 127,000, 154,000 and 158,000 employees, ArcelorMittal’s operating subsidiaries sponsor different types of
respectively, and the total annual compensation of pension plans for their employees. Also, some of the operating
ArcelorMittal’s employees in 2023, 2022 and 2021 was as subsidiaries offer other post-employment benefits, that are
follows: principally post-retirement healthcare plans. These benefits are
broken down into defined contribution plans and defined benefit
Year ended December 31, plans.
Employee Information 2023 2022 2021
Defined contribution plans are those plans where ArcelorMittal
Wages and salaries 6,868 6,463 6,707
pays fixed or determinable contributions to external life
Defined benefits cost (see insurance or other funds for certain categories of employees.
note 8.2) 148 153 117
Contributions are paid in return for services rendered by the
Other staff expenses 1,318 1,300 1,166
employees during the period. Contributions are expensed as
Total 8,334 7,916 7,990
incurred consistent with the recognition of wages and salaries.

The total annual compensation of ArcelorMittal’s key Defined benefit plans are those plans that provide guaranteed
management personnel, including its Board of Directors, benefits to certain categories of employees, either by way of
expensed in 2023, 2022 and 2021 was as follows: contractual obligations or through a collective agreement. For
defined benefit plans, the cost of providing benefits is
Year ended December 31, determined using the projected unit credit method, with actuarial
2023 2022 2021 valuations being carried out each fiscal year.
Base salary and directors fees 11 11 10
The retirement benefit obligation recognized in the consolidated
Short-term performance-
related bonus 9 16 12 statements of financial position represents the present value of
Post-employment benefits 1 1 2
the defined benefit obligation less the fair value of plan assets.
Share-based payments
The present value of the defined benefit obligation is determined
9 7 7
by discounting the estimated future cash outflows using interest
rates of high-quality corporate bonds that are denominated in
The fair value of the shares allocated based on Restricted Share
the currency in which the benefits will be paid, and that have
Unit (“RSU”) and Performance Share Unit (“PSU”) plans to
terms to maturity approximating the terms of the related pension
ArcelorMittal’s key management personnel was recorded as an
obligation. Remeasurement arising from experience
expense in the consolidated statements of operations over the
adjustments and changes in actuarial assumptions are charged
relevant vesting periods.
or credited to other comprehensive income in the period in
which they arise. Any assets resulting from this calculation are

322
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

limited to the present value of available refunds and reductions consolidated statements of operations in the period in which
in future contributions to the plan. they arise.

Current service cost, which is the increase of the present value The expense associated with the above pension plans and post-
of the defined benefit obligation resulting from the employee employment benefits, as well as the carrying amount of the
service in the current period, is recorded as an expense as part related liability/asset on the consolidated statements of financial
of cost of sales and selling, general and administrative position are based on a number of assumptions and factors
expenses in the consolidated statements of operations. The net such as discount rates, expected rate of compensation increase,
interest cost, which is the change during the period in the net healthcare cost trend rates, mortality rates and retirement rates.
defined benefit liability or asset that arises from the passage of
time, is recognized as part of net financing costs in the • Discount rates – The discount rate is based on several
consolidated statements of operations. high-quality corporate bond indexes and yield curves in
the appropriate jurisdictions. In countries where there is
The Company recognizes gains and losses on the settlement of no deep market in such bonds, the market rates on
a defined benefit plan when the settlement occurs. The gain or government bonds are used. Nominal interest rates
loss on settlement comprises any resulting change in the fair vary worldwide due to exchange rates and local
value of plan assets and any change in the present value of the inflation rates.
defined benefit obligation. Past service cost is the change in the
present value of the defined benefit obligation resulting from a • Rate of compensation increase – The rate of
plan amendment or a curtailment. Past service cost is compensation increase reflects actual experience and
recognized immediately in the consolidated statements of the Company’s long-term outlook, including
operations in the period in which it arises. contractually agreed wage rate increases for
represented hourly employees.
Termination plans are those plans that primarily correspond to
terminating an employee’s contract usually following the • Healthcare cost trend rate – The healthcare cost trend
decision of the employee before the normal retirement date. rate is based on historical retiree cost data, near-term
Liabilities for termination plans are recognized when the affected healthcare outlook, including appropriate cost control
employees have formally been informed and when amounts measures implemented by the Company, and industry
owed have been determined using an appropriate actuarial benchmarks and surveys.
calculation. Liabilities relating to long-term termination plans
• Mortality and retirement rates – Mortality and
(like early retirement plans) are calculated annually based on
retirement rates are based on actual and projected
the number of employees that have taken or contractually
plan experience.
agreed to take early retirement and are discounted using an
interest rate that corresponds to that of high-quality bonds that Statements of Financial Position
have maturity dates similar to the terms of the Company’s early Total deferred employee benefits including pension or other
retirement obligations. Provisions for social plans are recorded post-employment benefits, are as follows:
in connection with voluntary separation plans. Voluntary
retirement plans primarily correspond to the practical December 31,
implementation of social plans or are linked to collective
2023 2022
agreements signed with certain categories of employees. The
Pension plan benefits 1,594 1,543
Company recognizes a liability and expense when it can no
Other post-employment benefits and other
longer withdraw the offer or, if earlier, when it has a detailed long-term employee benefits ("OPEB") 967 861
formal plan which has been communicated to employees or Termination benefits 134 150
their representatives.
Defined benefit liabilities 2,695 2,554
Other long-term employee benefits include various plans that Provisions for social plans (non-current) 46 52
depend on the length of service, such as long service and Total 2,741 2,606
sabbatical awards, disability benefits and long-term
compensated absences such as sick leave. The amount This note, including the table above, discloses the following
recognized as a liability is the present value of benefit benefit categories:
obligations at the consolidated statements of financial position
date, and all changes in the provision (including actuarial gains • pension plan benefits are pension plans and lump sum
and losses or past service costs) are recognized in the benefits that are classified under post-employment

323
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

benefits as required by IAS 19 which are not was closed for new non-union hires on December 31, 2009 and
mandatory by law; replaced by a defined contribution pension plan with
contributions related to age and service. Effective January 1,
• other post-employment and other long-term employee 2015, AMMC implemented a plan to transition its non-union
benefits, also referred to as, OPEB which includes all employees who were still benefiting under the defined benefit
other post-employment benefits as defined in IAS 19 plan to a defined contribution pension plan. Transition dates can
(e.g. lump sum benefits which are mandatory by law, extend up to January 1, 2025 depending on the age and service
medical insurance and life insurance) together with all of each member.
other long-term employee benefits as defined in IAS
19; In 2023, AMMC entered into a buy-in transaction for a portion of
its fully funded pension plans representing obligations of 100.
• termination benefits, which relate to provisions for long
term termination benefits as defined in IAS 19 (e.g. ArcelorMittal Long Products Canada sponsors several defined
early retirement benefits); and benefit and defined contribution pension plans for its various
groups of employees, with most defined benefit plans closed to
• provisions for social plans (non-current) which relate to new entrants several years ago. The primary defined benefit
provisions for social plans in restructuring provisions as pension plan sponsored by ArcelorMittal Long Products Canada
required by IAS 37. provides certain unionized employees with a flat dollar pension
depending on an employee’s length of service.
The provisions for termination benefits relate to European
countries (Belgium, Spain and Germany). ArcelorMittal Long Products Canada continued to operate under
a six-year collective labor agreement ("CLA") renewed on
Pension plans
August 1, 2020 with its Contrecoeur-West union group. Its
This section includes post-employment benefits that are pension
defined benefit plan was closed to new hires and a new defined
plan and lump sum benefits which are not mandatory by law. A
contribution type arrangement was established for new hires. A
summary of the significant defined benefit pension plans is as
six-year labor agreement was renewed on February 1, 2022 and
follows:
it covers Contrecoeur East and Longueuil facilities; its defined
Canada benefit pension plan is offered for all employees including new
The primary pension plans are those of ArcelorMittal Dofasco, hires.
AMMC and ArcelorMittal Long Products Canada.
In 2020 and 2022, ArcelorMittal Long Products Canada entered
The ArcelorMittal Dofasco pension plan is a hybrid plan into buy-in transactions for a portion of its fully funded pension
providing the benefits of both a defined benefit and defined plans representing 278 obligations.
contribution pension plan. The defined contribution component
Brazil
is financed by both employer and employee contributions. The
The primary defined benefit plans, financed through trust
employer’s defined contribution is based on a percentage of
funds, have been closed to new entrants. Brazilian entities have
company profits. The defined benefit pension plan was closed
all established defined contribution plans that are financed by
for new hires on December 31, 2010 and replaced by a new
employer and employee contributions.
defined contribution pension plan with contributions related to
age, service and earnings. Europe
Certain European operating subsidiaries maintain primarily
At the end of 2012, ArcelorMittal Dofasco froze and capped
unfunded defined benefit pension plans for a certain number of
benefits for the majority of its hourly and salaried employees
employees. Benefits are based on such employees’ length of
who were still accruing service under the defined benefit plan
service and applicable pension table under the terms of
and began transitioning these employees to the new defined
individual agreements. Some of these unfunded plans have
contribution pension plan for future pension benefits.
been closed to new entrants and replaced by defined
In 2023, ArcelorMittal Dofasco entered into a buy-in transaction contribution pension plans for active members financed by
for a portion of its fully funded pension plans representing 352 employer and employee contributions.
obligations.
As from December 2015 new Belgian legislation modifies the
The AMMC defined benefit plan provides salary related benefit minimum guaranteed rates of return applicable to Belgian
for non-union employees and a flat dollar pension depending on defined contribution plans. For insured plans, the rates of 3.25%
an employee’s length of service for union employees. This plan on employer contributions and 3.75% on employee contributions
will continue to apply to the accumulated pre-2016 contributions.
324
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

For contributions paid as from January 1, 2016, a new variable In case of the funded pension plans, the investment positions
minimum guaranteed rate of return applies. From 2016 through are generally managed within an asset-liability matching ("ALM")
2024, the minimum guaranteed rate of return was 1.75% and framework that has been developed to achieve long-term
this percentage will be also applicable for the year 2023. Due to investments that are in line with the obligations of the pension
the statutory minimum guaranteed return, Belgian defined plans.
contribution plans do not meet the definition of defined
contribution plans under IFRS. Therefore, the Belgian defined A long-term investment strategy has been set for ArcelorMittal’s
contribution plans are classified as defined benefit plans. major funded pension plans, with its asset allocation comprising
of a mixture of equity securities, fixed income securities, real
Others estate and other appropriate assets. This recognizes that
A very limited number of defined benefit plans are in place in different asset classes are likely to produce different long-term
other countries (such as Mexico, Morocco, Ukraine and the returns and some asset classes may be more volatile than
United States of America). others. The long-term investment strategy ensures, in particular,
that investments are adequately diversified.
The majority of the funded defined benefit pension plans
described earlier provide benefit payments from trustee-
administered funds. ArcelorMittal also sponsors a number of
unfunded plans where the Company meets the benefit payment
obligation as it falls due. Plan assets held in trusts are legally
separated from the Company and are governed by local
regulations and practice in each country, as is the nature of the
relationship between the Company and the governing bodies
and their composition. In general terms, governing bodies are
required by law to act in the best interest of the plan members
and are responsible for certain tasks related to the plan (e.g.
setting the plan's investment policy).

The following tables detail the reconciliation of defined benefit obligation (“DBO”), plan assets, irrecoverable surplus and statements of
financial position.

325
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Year ended December 31, 2023

Total Canada Brazil Europe Other

Change in benefit obligation

Benefit obligation at beginning of the period 4,932 2,375 431 1,849 277
Current service cost 74 14 — 48 12
Interest cost on DBO 267 120 43 69 35
Past service cost - Plan amendments 9 — — 3 6
Past service cost - Curtailments (6) — — (6) —
Plan participants’ contribution 1 — — 1 —
Actuarial (gain) loss 272 130 38 88 16
Demographic assumptions 15 4 — 10 1
Financial assumptions 246 123 33 86 4
Experience adjustment 11 3 5 (8) 11
Benefits paid (382) (193) (40) (121) (28)
Divestment (see note 2.3) (50) — — — (50)
Foreign currency exchange rate differences and other movements 167 52 35 56 24
Benefit obligation at end of the period 5,284 2,498 507 1,987 292

Change in plan assets

Fair value of plan assets at beginning of the period 3,466 2,400 391 647 28
Interest income on plan assets 183 118 39 25 1
Return on plan assets less than discount rate 221 118 26 75 2
Employer contribution 89 19 4 66 —
Plan participants’ contribution 1 — — 1 —
Benefits paid (297) (192) (40) (64) (1)
Foreign currency exchange rate differences and other movements 108 54 31 23 —
Fair value of plan assets at end of the period 3,771 2,517 451 773 30

Present value of the wholly or partly funded obligation (4,198) (2,487) (507) (1,173) (31)
Fair value of plan assets 3,771 2,517 451 773 30
Net present value of the wholly or partly funded obligation (427) 30 (56) (400) (1)
Present value of the unfunded obligation (1,086) (11) — (814) (261)
Prepaid due to unrecoverable surpluses (35) (28) (4) (3) —
Net amount recognized (1,548) (9) (60) (1,217) (262)

Net assets related to funded obligations 46 42 — 4 —

Recognized liabilities (1,594) (51) (60) (1,221) (262)

Change in unrecoverable surplus

Unrecoverable surplus at beginning of the period (33) (27) (3) (3) —
Interest cost on unrecoverable surplus (2) (2) — — —
Change in unrecoverable surplus in excess of interest 1 1 — — —
Exchange rates changes (1) — (1) — —
Unrecoverable surplus at end of the period (35) (28) (4) (3) —

326
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Year ended December 31, 2022

Total Canada Brazil Europe Other

Change in benefit obligation

Benefit obligation at beginning of the period 6,739 3,306 398 2,751 284
Current service cost 99 24 — 63 12
Interest cost on DBO 183 95 39 26 23
Past service cost - Plan amendments 5 9 — (4) —
Past service cost - Curtailments (26) — — (26) —
Plan participants’ contribution 1 — — 1 —
Actuarial (gain) loss (1,287) (647) — (645) 5
Demographic assumptions 42 — — (1) 43
Financial assumptions (1,452) (678) (31) (699) (44)
Experience adjustment 123 31 31 55 6
Benefits paid (388) (208) (36) (117) (27)
Foreign currency exchange rate differences and other movements (394) (204) 30 (200) (20)
Benefit obligation at end of the period 4,932 2,375 431 1,849 277

Change in plan assets

Fair value of plan assets at beginning of the period 4,496 3,163 376 918 39
Interest income on plan assets 130 87 34 8 1
Return on plan assets less than discount rate (705) (473) (9) (213) (10)
Employer contribution 65 22 — 43 —
Plan participants’ contribution 1 — — 1 —
Benefits paid (296) (206) (36) (52) (2)
Foreign currency exchange rate differences and other movements (225) (193) 26 (58) —
Fair value of plan assets at end of the period 3,466 2,400 391 647 28

Present value of the wholly or partly funded obligation (3,895) (2,364) (431) (1,072) (28)
Fair value of plan assets 3,466 2,400 391 647 28
Net present value of the wholly or partly funded obligation (429) 36 (40) (425) —
Present value of the unfunded obligation (1,037) (11) — (777) (249)
Prepaid due to unrecoverable surpluses (33) (27) (3) (3) —
Net amount recognized (1,499) (2) (43) (1,205) (249)

Net assets related to funded obligations 44 39 — 4 1

Recognized liabilities (1,543) (41) (43) (1,209) (250)

Change in unrecoverable surplus

Unrecoverable surplus at beginning of the period (33) (28) (2) (3) —
Interest cost on unrecoverable surplus (1) (1) — — —
Change in unrecoverable surplus in excess of interest (1) — (1) — —
Exchange rates changes 2 2 — — —
Unrecoverable surplus at end of the period (33) (27) (3) (3) —

327
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

The following tables detail the components of net periodic pension cost:

Year ended December 31, 2023

Net periodic pension cost (income) Total Canada Brazil Europe Others
Current service cost 74 14 — 48 12
Past service cost - Plan amendments 9 — — 3 6
Past service cost - Curtailments (6) — — (6) —
Net interest cost (income) on net DB liability (asset) 82 — 4 44 34
Total 159 14 4 89 52

Year ended December 31, 2022

Net periodic pension cost (income) Total Canada Brazil Europe Others
Current service cost 99 24 — 63 12
Past service cost - Plan amendments 5 9 — (4) —
Past service cost - Curtailments (26) — — (26) —
Net interest cost/(income) on net DB liability (asset) 52 7 5 18 22
Total 130 40 5 51 34

Year ended December 31, 2021

Net periodic pension cost (income) Total Canada Brazil Europe Others
Current service cost 105 29 — 69 7
Past service cost - Plan amendments 31 28 — 3 —
Net interest cost (income) on net DB liability (asset) 55 14 7 12 22
Total 191 71 7 84 29

Other post-employment benefits and other long-term employee medals and retirement indemnity plans, to employees and
benefits ("OPEB") retirees.
This section includes post-employment employees benefits that
are not disclosed above (i.e. includes lump sum benefits which In April 2021, ArcelorMittal Poland and trade unions reached an
are mandatory by law, medical insurance and life insurance). In agreement on the new CLA. The parties agreed a ten-year
addition, this section includes all other long-term employee transition period for retirement benefits and jubilee awards. At
benefits. the end of the transition period, in 2031, ArcelorMittal Poland will
pay the retirement benefits based on the labor code. In June
ArcelorMittal’s principal operating subsidiaries in Canada, 2021, the CLA was registered by the National Labor
Europe and certain other countries, provide other post- Inspectorate in Poland and accordingly ArcelorMittal Poland
employment benefits and other long-term employee benefits, recognized total plan amendment and curtailment gain of 51 in
including medical benefits and life insurance benefits, work cost of sales.

328
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Summary of changes in the other post-employment benefit obligation and changes in plan assets are as follows:

Year ended December 31, 2023

Total Canada Europe Others

Change in benefit obligation
Benefit obligation at beginning of the period 866 455 314 97
Current service cost 27 7 17 3
Interest cost on DBO 46 24 14 8
Past service cost - Plan amendments 6 — (2) 8
Actuarial (gain) loss 64 41 30 (7)
Demographic assumptions 18 18 — —
Financial assumptions 44 26 19 (1)
Experience adjustment 2 (3) 11 (6)
Benefits paid (75) (29) (35) (11)
Foreign currency exchange rate differences and other movements 37 10 17 10
Benefit obligation at end of the period 971 508 355 108

Change in plan assets

Fair value of plan assets at beginning of the period 5 — 5 —
Benefits paid (1) — (1) —
Fair value of plan assets at end of the period 4 — 4 —

Present value of the wholly or partly funded obligation (19) — (19) —

Fair value of plan assets 4 — 4 —
Net present value of the wholly or partly funded obligation (15) — (15) —
Present value of the unfunded obligation (952) (508) (336) (108)
Net amount recognized (967) (508) (351) (108)

329
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Year ended December 31, 2022

Total Canada Europe Others

Change in benefit obligation
Benefit obligation at beginning of the period 1,190 661 423 106
Current service cost 37 11 21 5
Interest cost on DBO 30 19 5 6
Actuarial (gain) loss (250) (163) (71) (16)
Demographic assumptions 1 — — 1
Financial assumptions (251) (155) (84) (12)
Experience adjustment — (8) 13 (5)
Benefits paid (71) (32) (32) (7)
Foreign currency exchange rate differences and other movements (70) (41) (32) 3
Benefit obligation at end of the period 866 455 314 97

Change in plan assets

Fair value of plan assets at beginning of the period 6 — 6 —
Return on plan assets less than discount rate (1) — (1) —
Fair value of plan assets at end of the period 5 — 5 —

Present value of the wholly or partly funded obligation (20) — (20) —

Fair value of plan assets 5 — 5 —
Net present value of the wholly or partly funded obligation (15) — (15) —
Present value of the unfunded obligation (846) (455) (294) (97)
Net amount recognized (861) (455) (309) (97)

330
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

The following tables detail the components of net periodic other post-employment cost:

Year ended December 31, 2023

Components of net periodic OPEB cost (income) Total Canada Europe Others
Current service cost 27 7 17 3
Past service cost - Plan amendments 6 — (2) 8
Net interest cost (income) on net DB liability (asset) 46 24 14 8
Actuarial gain recognized during the year 11 — 11 —
Total 90 31 40 19

Year ended December 31, 2022

Components of net periodic OPEB cost (income) Total Canada Europe Others
Current service cost 37 11 21 5
Net interest cost (income) on net DB liability (asset) 29 19 4 6
Actuarial gain recognized during the year (20) — (20) —
Total 46 30 5 11

Year ended December 31, 2021

Components of net periodic OPEB cost (income) Total Canada Europe Others
Current service cost 9 (1) 7 3
Past service cost - Plan amendments (57) 1 (58) —
Past service cost - Curtailments (7) — (7) —
Net interest cost (income) on net DB liability (asset) 25 18 2 5
Actuarial losses recognized during the year (14) (1) (13) —
Total (44) 17 (69) 8

The following tables detail where the expense is recognized in the consolidated statements of operations:

Year ended December 31,

2023 2022 2021
Net periodic pension cost 159 130 191
Net periodic OPEB cost 90 46 (44)
Total 249 176 147

Cost of sales 100 115 72

Selling, general and administrative expenses 14 — 9
Financing costs - net 135 61 66
Total 249 176 147

331
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Plan Assets
The weighted-average asset allocations for the funded defined benefit plans by asset category were as follows:

December 31, 2023

Canada Brazil Europe
Equity Securities 27 % 2% 8%
- Asset classes that have a quoted market price in an active market 20 % — 8%
- Asset classes that do not have a quoted market price in an active market 7% 2% —
Fixed Income Securities (including cash) 33 % 67 % 58 %
- Asset classes that have a quoted market price in an active market 24 % 67 % 58 %
- Asset classes that do not have a quoted market price in an active market 9% — —
Real Estate 9% 1% —
- Asset classes that have a quoted market price in an active market — — —
- Asset classes that do not have a quoted market price in an active market 9% 1% —
Other 31 % 30 % 34 %
- Asset classes that have a quoted market price in an active market — 30 % 7%
'
1
- Asset classes that do not have a quoted market price in an active market 31 % — 27 %
Total 100 % 100 % 100 %

December 31, 2022

Canada Brazil Europe
Equity Securities 36 % 6% 1%
- Asset classes that have a quoted market price in an active market 27 % 4% 1%
- Asset classes that do not have a quoted market price in an active market 9% 2% —
Fixed Income Securities (including cash) 43 % 77 % 69 %
- Asset classes that have a quoted market price in an active market 42 % 77 % 55 %
- Asset classes that do not have a quoted market price in an active market 1% — 14 %
Real Estate 10 % 1% —
- Asset classes that have a quoted market price in an active market — — —
- Asset classes that do not have a quoted market price in an active market 10 % 1% —
Other 11 % 16 % 30 %
- Asset classes that have a quoted market price in an active market — 16 % 7%
'
1
- Asset classes that do not have a quoted market price in an active market 11 % — 23 %
Total 100 % 100 % 100 %

1. The percentage consists primarily of assets from insurance contracts in Belgium and Canada.

These assets do not include direct investments in ArcelorMittal stock or ArcelorMittal bonds. They may include ArcelorMittal shares or
bonds held by mutual fund investments. The invested assets produced a 404 actual return and a 576 loss in 2023 and 2022,
respectively.

The Finance and Retirement Committees of the Boards of Directors for the respective operating subsidiaries have general supervisory
authority over the respective trust funds. These committees usually establish, monitor and review asset allocation targets for the
respective funds. Asset managers are permitted some flexibility to vary the asset allocation from the long-term investment strategy
within agreed upon control ranges. The established targets observed as of December 31, 2023 are as described below:

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(millions of U.S. dollar, except share and per share data)

December 31, 2023

Canada Brazil Europe
Equity Securities 27 % 2% 16 %
Fixed Income Securities (including cash) 34 % 67 % 62 %
Real Estate 8% 1% —

Other'1 31 % 30 % 22 %

Total 100 % 100 % 100 %

1. The percentage consists primarily of assets from insurance contracts in Belgium and Canada.

Assumptions used to determine benefit obligations at December 31,

Pension Plans Other Post-employment Benefits

2023 2022 2021 2023 2022 2021
Discount rate
Range 3.30% - 18.00% 3.75% - 24.00% 1.00% - 11.00% 3.30% - 10.15% 3.50% - 9.30% 1.00% - 7.95%
Weighted average 5.02% 5.44% 2.75% 4.68% 5.10% 2.65%
Rate of compensation increase
Range 2.00% - 11.00% 2.00% - 15.00% 2.00% - 10.00% 2.00% - 4.80% 2.00% - 4.80% 2.00% - 4.80%
Weighted average 2.93% 3.01% 2.87% 3.26% 3.29% 3.14%

Other Post-employment Benefits

2023 2022 2021
Healthcare cost trend rate assumed
Range 2.20% - 6.59% 2.00% - 4.50% 1.30% - 4.50%
Weighted average 4.06% 3.97% 3.95%

Cash contributions and maturity profile of the plans

In 2024, the Company expects its cash contributions to amount Changes in bond yields
to 166 for pension plans, 66 for other post-employment benefits An increase in corporate bond yields will decrease plan
plans and 117 for defined contribution plans. In 2023 and 2022, liabilities, however it will decrease simultaneously the value of
cash contributions to defined contributions plans were 146 and the plans’ bond holdings.
141, respectively.
Asset volatility
At December 31, 2023, the weighted average duration of The plan liabilities are calculated using a discount rate set with
liabilities related to pension and other post-employment benefits reference to corporate bond yields; if plan assets underperform
plans were 10 years and 11 years, respectively. At December this yield, this will create a deficit. In most countries with funded
31, 2022, the weighted average duration of liabilities related to plans, plan assets hold a significant portion of equities, which
pension and other post-employment benefits plans were 12 are expected to outperform corporate bonds in the long-term but
years and 12 years, respectively. contribute to volatility and risk in the short-term. As the plans
mature, ArcelorMittal intends to reduce the level of investment
Risks associated with defined benefit plans risk by investing more in assets that better match the liabilities.
Through its defined benefit pension plans and OPEB plans, However, ArcelorMittal believes that due to the long-term nature
ArcelorMittal is exposed to a number of risks, the most of the plan liabilities, a level of continuing equity investment is
significant of which are detailed below: an appropriate element of a long-term strategy to manage the
plans efficiently.

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 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Life expectancy Healthcare cost trend rate

Most plans provide benefits for the life of the covered members, The majority of the OPEB plans’ benefit obligations are linked to
so increases in life expectancy will result in an increase in the the change in the cost of various health care components.
plans’ benefit obligations. Future healthcare cost will vary based on several factors
including price inflation, utilization rate, technology advances,
Assumptions regarding future mortality rates have been set cost shifting and cost containing mechanisms. A higher
considering published statistics and, where possible, healthcare cost trend would lead to higher OPEB plan benefit
ArcelorMittal’s own experience. obligations.

The current longevity at retirement underlying the values of the

defined benefit obligation was approximately 23 years.

Sensitivity analysis
The following information illustrates the sensitivity to a change of the significant actuarial assumptions related to ArcelorMittal’s pension
plans (as of December 31, 2023, the defined benefit obligation for pension plans was 5,284):

Effect on 2024 Pre-Tax Pension Expense Effect on December 31, 2023 DBO
(sum of service cost and interest cost)
Change in assumption
100 basis points decrease in discount rate (15) 578
100 basis points increase in discount rate 12 (475)
100 basis points decrease in rate of compensation (13) (123)
100 basis points increase in rate of compensation 13 127
1 year increase of the expected life of the beneficiaries 6 115

The following table illustrates the sensitivity to a change of the significant actuarial assumptions related to ArcelorMittal’s OPEB plans
(as of December 31, 2023 the defined benefit obligation for post-employment benefit plans was 971):

Effect on 2024 Pre-Tax OPEB Expense Effect on December 31, 2023 DBO
(sum of service cost and interest cost)
Change in assumption
100 basis points decrease in discount rate — 117
100 basis points increase in discount rate — (96)
100 basis points decrease in healthcare cost trend rate (4) (51)
100 basis points increase in healthcare cost trend rate 5 63
1 year increase of the expected life of the beneficiaries — 17

The above sensitivities reflect the effect of changing one performance against other market index, fair value is measured
assumption at a time. Actual economic factors and conditions using the Monte Carlo pricing model to estimate the forecasted
often affect multiple assumptions simultaneously, and the effects target performance goal for the company and its peer
of changes in key assumptions are not necessarily linear. companies. The expected life used in the model has been
adjusted, based on management’s best estimate, for the effects
8.3 Share-based payments of non-transferability, exercise restrictions and behavioral
ArcelorMittal issues equity-settled share-based payments to considerations. In addition, the expected annualized volatility
certain employees which are RSUs and PSUs. Equity-settled has been set by reference to the implied volatility of options
share-based payments are measured at fair value (excluding available on ArcelorMittal shares in the open market, as well as,
the effect of non market-based vesting conditions) at the grant historical patterns of volatility. The fair value determined at the
date. The fair value determined at the grant date of the equity- grant date of the equity-settled share-based payments is
settled share-based payments is expensed on a graded expensed on a straight line method over the vesting period.
vesting basis over the vesting period, based on the Company’s
estimate of the shares that will eventually vest and adjusted for
the effect of non market-based vesting conditions. Where the
fair value calculation requires modeling of the Company’s

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(millions of U.S. dollar, except share and per share data)

ArcelorMittal Equity Incentive Plan RSUs granted under the ArcelorMittal Equity Incentive Plan are
ArcelorMittal operates a long-term incentive plan ("the designed to provide a retention incentive to eligible employees.
ArcelorMittal Equity Incentive Plan") to incentivize shareholder RSUs are subject to “cliff vesting” after 3 years, with 100% of
wealth creation in excess of performance of a peer group and the grant vesting on the third anniversary of the grant contingent
incentivize executives to achieve strategy. The ArcelorMittal upon the continued active employment of the eligible employee
Equity Incentive Plan is intended to align the interests of the within the Company.
Company’s shareholders and eligible employees by allowing
them to participate in the success of the Company. The The maximum number of PSUs and RSUs available for grant
ArcelorMittal Equity Incentive Plan provides for the grant of during any given year is subject to the prior approval of the
RSUs and PSUs to eligible employees of the Company Company’s shareholders at the AGM. The 2020, 2021, 2022
(including Executive Officers) and is designed to incentivize and 2023 Caps for the number of PSUs/RSUs that may be
employees, improve the Company’s long-term performance and allocated to the Executive Office and other retention and
retain key employees. performance based grants below the Executive Office level,
were approved at the AGMs on June 13, 2020, June 8, 2021,
The grant of PSUs under the ArcelorMittal Equity Incentive Plan May 4, 2022 and May 2, 2023 respectively, at a maximum of
aims to serve as an effective performance-enhancing scheme 4,250,000 shares, 3,500,000 shares, 3,500,000 shares and
based on the employee’s contribution to the eligible 3,500,000 shares, respectively.
achievement of the Company’s strategy. Awards in connection
with PSUs are subject to the fulfillment of cumulative
performance criteria over a three-year period from the date of
the PSU grant such as return on capital employed ("ROCE"),
total shareholders return ("TSR"), earnings per share ("EPS")
and gap to competition (until 2022). Since 2021, performance
criteria also include a set of three weighted environmental,
social and governance ("ESG") indicators representing 30% and
20% award vesting for the Executive Office and Executive
Officers, respectively, including health & safety, climate action
and diversity & inclusion ("D&I"). For health & safety (10%
award vesting for both Executive Office and Executive Officers),
the target is to halve the fatality frequency rate versus a defined
baseline (the baseline is the adjusted average frequency rate
over 5 years before the grant). For D&I (10% and 5% award
vesting for Executive Office and Executive Officers,
respectively), the target is to reduce by 40% the gap between
the Company's 2030 target of having 25% women in
management and 2020 baseline. For climate (10% and 5%
award vesting for Executive Office and Executive Officers,
respectively), the CO2 emission target has been set to be
reached by the end of the vesting period. The employees
eligible to receive PSUs are a sub-set of the group of employees
eligible to receive RSUs.

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 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Conditions of the 2023 grant were as follows:

Executive Office Executive Officers

l PSUs with a three year performance period l PSUs with a three year performance period

l Value at grant 120% of base salary for the Executive

Chairman and the CEO
l Vesting conditions: l Vesting conditions:

Target Stretch Threshold Target Stretch

TSR vs. peer group (50%) / 100% vs. ≥120% vs. 100% ≥120%
TSR vs. peer group
EPS vs. peer group (20%) weighted weighted — weighted weighted
(40%)
average average average average

2023 Vesting percentage 100% 150% Vesting percentage — 100% 150%

Grant
2/3 of 100% of 4/3 of
ROCE (40%) Target target target
ESG (30%): H&S 10%, 100% of 120% of
Climate action 10% and D&I Vesting percentage 50% 100% 150%
target target
10%
ESG (20%): H&S 10%, 100% of 120% of
Climate action 5% and — target target
D&I 5%
Vesting percentage 100% 150% Vesting percentage — 100% 150%
l RSUs with a three year vesting period

Awards made in previous financial years which have not yet

reached the end of the vesting period
ArcelorMittal's Equity Incentive Plan for senior management
including Executive Officers follows the Company's strategy. In
addition to the 2023 grant, the summary of outstanding plans as
of December 31, 2023 is as follows:

336
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Executive Office Executive Officers

l PSUs with a three year performance period l PSUs with a three year performance period

l Value at grant 100% of base salary for the Executive Chairman and
the CEO
l Vesting conditions: l Vesting conditions:

Threshold Target Threshold Target

TSR/EPS vs. peer group 100% median ≥120% median TSR/EPS vs. peer group 100% median ≥120% median
Vesting percentage 50% 100%
2020 ≥Performance
Grant Performance equal to Index + Gap to competition (where 100% target
TSR vs. S&P 500 equal to Index 2% p.a. applicable) 100% vesting
outperformance
Vesting percentage 50% 100% Vesting percentage 0% 100%

l RSUs with a three year vesting period

l RSUs with a one year vesting period

Executive Office Executive Officers

l PSUs with a three year performance period l PSUs with a three year performance period

l Value at grant 100% of base salary for the Executive Chairman and
the CEO
l Vesting conditions: l Vesting conditions:

Threshold Target Target Stretch

TSR vs. peer group (50%) / EPS 100% ≥120%
vs. peer group (20%) 100% median ≥120% median TSR vs. peer group (40%) weighted weighted
average average
2021
Grant Vesting percentage 50% 100% Vesting percentage 100% 150%
Gap to competition (40%) 100% of target 120% of target
ESG (30%) 100% of target Vesting percentage 100% 150%
ESG (20%) 100% of target 120% of target
Vesting percentage 100% 100% 150%
l RSUs with a three year vesting period

l RSUs with a two year vesting period

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 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Executive Office Executive Officers

l PSUs with a three year performance period l PSUs with a three year performance period

l Value at grant 120% of base salary for the Executive Chairman and
the CEO
l Vesting conditions: l Vesting conditions

Threshold Target Target Stretch

TSR vs. peer group (50%) / EPS 100% vs. ≥120% vs. 100% ≥120%
vs. peer group (20%) weighted weighted TSR vs. peer group (40%) weighted weighted
average average average average
2022
Grant Vesting percentage 100% 150% Vesting percentage 100% 150%
Gap to competition (40%) 100% of target 120% of target
ESG (30%): H&S 10%, Climate 100% of target 120% of target Vesting percentage 100% 150%
action 10% and D&I 10%
ESG (20%): H&S 10%, 100% of target 120% of target
Climate action 5% and D&I
5%
Vesting percentage 100% 150% Vesting percentage 100% 150%
l RSUs with a three year vesting period

The following table summarizes the Company’s share unit plans outstanding as of December 31, 2023:

Number of shares issued as of

At Grant date December 31, 2023
Number of Number of Fair value Shares Shares Shares
Grant date Type of plan shares beneficiaries Maturity per share outstanding forfeited vested
December 8, 2023 RSU 1,269,300 958 December 8, 2026 25.58 1,269,300 — —
December 8, 2023 PSU 985,700 256 January 1, 2027 22.06 985,700 — —
December 8, 2023 Executive Office 141,973 2 January 1, 2027 20.49 141,973 — —
December 13, 2022 RSU 866,000 802 December 13, 2025 27.61 831,600 32,934 1,466
December 13, 2022 PSU 644,800 242 January 1, 2026 23.64 636,300 8,500 —
December 13, 2022 Executive Office 141,564 2 January 1, 2026 22.47 141,564 — —
December 16, 2021 RSU 729,250 658 December 16, 2024 32.66 656,900 63,659 8,691
December 16, 2021 PSU 575,400 244 January 1, 2025 28.29 529,150 46,250 —
December 16, 2021 Executive Office 109,143 2 January 1, 2025 27.20 109,143 — —
December 14, 2020 PSU 714,250 235 January 1, 2024 19.74 602,050 112,200 —
December 14, 2020 Executive Office 148,422 2 January 1, 2024 18.19 148,422 — —
$18.19 –
Total 6,325,802 $32.66 6,052,102 263,543 10,157

The compensation expense recognized for PSUs and RSUs

was 39, 38 and 35 for the years ended December 31, 2023,
2022 and 2021.

Share unit plan activity is summarized below as of and for each

year ended December 31, 2023, 2022 and 2021:

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(millions of U.S. dollar, except share and per share data)

Provisions for restructuring are recognized when and only when

PSUs and Executive
RSUs Office
a detailed formal plan exists and a valid expectation in those
affected by the restructuring has been raised, by starting to
Fair Fair implement the plan or announcing its main features.
value value
Number of per Number of per
ArcelorMittal records asset retirement obligations (“ARO”)
shares share shares share
initially at the fair value of the legal or constructive obligation in
Outstanding, December 31,
2020 1,391,284 21.15 7,150,167 17.18
the period in which it is incurred and capitalizes the ARO by
Granted
increasing the carrying amount of the related non-current asset.
1,079,250 32.62 684,543 28.12
The fair value of the obligation is determined as the discounted
Exited (315,699) 21.20 (613,385) 14.04
value of the expected future cash flows. The liability is accreted
Forfeited (59,885) 23.47 (2,915,514) 15.37 to its present value through net financing cost and the
Outstanding, December 31, capitalized cost is depreciated in accordance with the
2021 2,094,950 26.99 4,305,811 20.58 Company’s depreciation policies for property, plant and
Granted 866,000 27.61 786,364 23.43 equipment. Subsequently, when reliably measurable, ARO is
Exited (17,294) 26.21 (673,661) 20.84 recorded on the consolidated statements of financial position
Forfeited (106,506) 26.36 (725,018) 19.54 increasing the cost of the asset and the fair value of the related
Outstanding, December 31, obligation. Foreign exchange gains or losses on AROs
2022 2,837,150 27.20 3,693,496 21.35 denominated in foreign currencies are recorded in the
Granted 1,269,300 25.58 1,127,673 21.86 consolidated statements of operations.
Exited (1,232,074) 24.05 (1,434,251) 18.16
ArcelorMittal is subject to changing and increasingly stringent
Forfeited (116,576) 26.90 (92,616) 22.21 environmental laws and regulations concerning air emissions,
Outstanding, December 31, water discharges and waste disposal, as well as certain
2023 2,757,800 27.88 3,294,302 22.89 remediation activities that involve the clean-up of soil and
groundwater. ArcelorMittal is currently engaged in the
investigation and remediation of environmental contamination at
NOTE 9: PROVISIONS, CONTINGENCIES AND a number of its facilities. Most of these are legacy obligations
COMMITMENTS arising from acquisitions.
ArcelorMittal recognizes provisions for liabilities and probable Environmental costs that relate to current operations or to an
losses that have been incurred when it has a present legal or existing condition caused by past operations, and which do not
constructive obligation as a result of past events, it is probable contribute to future revenue generation or cost reduction, are
that the Company will be required to settle the obligation and a expensed. Liabilities are recorded when environmental
reliable estimate of the amount of the obligation can be made. If assessments and/or remedial efforts are probable and the cost
the effect of the time value of money is material, provisions are can be reliably estimated based on ongoing engineering studies,
discounted using a current pre-tax rate that reflects, where discussions with the environmental authorities and other
appropriate, the risks specific to the liability. Where discounting assumptions relevant to the nature and extent of the
is used, the increase in the provision due to the passage of time remediation that may be required. The ultimate cost to
is recognized as a financing cost. Future operating expenses or ArcelorMittal is dependent upon factors beyond its control such
losses are excluded from recognition as provisions as they do as the scope and methodology of the remedial action
not meet the definition of a liability. Contingent assets and requirements to be established by environmental and public
contingent liabilities are excluded from recognition in the health authorities, new laws or government regulations, rapidly
consolidated statements of financial position. changing technology and the outcome of any potential related
litigation. Environmental liabilities are discounted if the
Provisions for onerous contracts are recorded in the
aggregate amount of the obligation and the amount and timing
consolidated statements of operations when it becomes known
of the cash payments are fixed or reliably determinable.
that the unavoidable costs of meeting the obligations under the
contract exceed the economic benefits expected to be received. The estimates of loss contingencies for environmental matters
Assets dedicated to the onerous contracts are tested for and other contingencies are based on various judgments and
impairment before recognizing a separate provision for the assumptions including the likelihood, nature, magnitude and
onerous contract. timing of assessment, remediation and/or monitoring activities
and the probable cost of these activities. In some cases,
judgments and assumptions are made relating to the obligation
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 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

or willingness and ability of third parties to bear a proportionate nature of the contingency. ArcelorMittal has not accrued a
or allocated share of cost of these activities, including third provision for the potential outcome of these cases.
parties who sold assets to ArcelorMittal or purchased assets
from it subject to environmental liabilities. ArcelorMittal also For cases in which the Company was able to make a reliable
considers, among other things, the activity to date at particular estimate of the expected loss or range of probable loss and has
sites, information obtained through consultation with applicable accrued a provision for such loss, it believes that publication of
regulatory authorities and third-party consultants and this information on a case-by-case basis would seriously
contractors and its historical experience with other prejudice the Company’s position in the ongoing legal
circumstances judged to be comparable. Due to the numerous proceedings or in any related settlement discussions.
variables associated with these judgments and assumptions, Accordingly, in these cases, the Company has disclosed
and the effects of changes in governmental regulation and information with respect to the nature of the contingency, but
environmental technologies, both the precision and reliability of has not disclosed its estimate of the range of potential loss.
the resulting estimates of the related contingencies are subject
In the cases in which quantifiable fines and penalties have been
to substantial uncertainties. As estimated costs to remediate
assessed, the Company has indicated the amount of such fine
change, the Company will reduce or increase the recorded
or penalty or the amount of provision accrued that is the
liabilities through write backs or additional provisions in the
estimate of the probable loss.
consolidated statements of operations. ArcelorMittal does not
expect these environmental issues to affect the utilization of its These assessments can involve a series of complex judgments
plants, now or in the future. about future events and can rely heavily on estimates and
assumptions. The assessments are based on estimates and
ArcelorMittal is currently and may in the future be involved in
assumptions that have been deemed reasonable by
litigation, arbitration or other legal proceedings. Provisions
management. The Company believes that the aggregate
related to legal and arbitration proceedings are recorded in
provisions recorded for the above matters are adequate based
accordance with the principles described above.
upon currently available information. However, given the
Most of these claims involve highly complex issues. Often these inherent uncertainties related to these cases and in estimating
issues are subject to substantial uncertainties and, therefore, contingent liabilities, the Company could, in the future, incur
the probability of loss and an estimation of damages are difficult judgments that have a material adverse effect on its results of
to ascertain. Consequently, ArcelorMittal may be unable to make operations in any particular period. The Company considers it
a reliable estimate of the expected financial effect that will result highly unlikely, however, that any such judgments could have a
from ultimate resolution of the proceeding. In those cases, material adverse effect on its liquidity or financial condition.
ArcelorMittal has disclosed information with respect to the

340
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

9.1 Provisions
Balance at Effects of foreign Balance at
December 31, Deductions/ exchange and December 31,
1
2022 Additions Payments other movements 2023
Environmental 566 113 (76) 17 620
Emission obligations 522 3 (486) (10) 29
Asset retirement obligations 349 21 (3) 13 380
Site restoration 152 8 (17) 4 147
Staff related obligations 137 50 (29) 4 162
Voluntary separation plans 23 8 (17) 18 32
Litigation and other (see note 9.3) 289 66 (62) 56 349
Tax claims 73 16 (14) 6 81
Other legal claims 216 50 (48) 50 268
Commercial agreements and onerous contracts 28 6 (6) 1 29
Other 341 85 (117) 8 317
2,407 360 (813) 111 2,065
Short-term provisions 1,101 588
Long-term provisions 1,306 1,477
2,407 2,065

Balance at Effects of foreign Balance at

December 31, Deductions/ exchange and December 31,
1
2021 Additions Payments other movements 2022
Environmental 595 59 (61) (27) 566
Emission obligations 492 477 (443) (4) 522
Asset retirement obligations 397 22 (41) (29) 349
Site restoration 220 — (54) (14) 152
Staff related obligations 120 40 (29) 6 137
Voluntary separation plans 31 3 (18) 7 23
Litigation and other (see note 9.3) 323 53 (103) 16 289
Tax claims 79 9 (24) 9 73
Other legal claims 244 44 (79) 7 216
Commercial agreements and onerous
contracts 23 9 (4) — 28
Other 361 84 (124) 20 341
2,562 747 (877) (25) 2,407
Short-term provisions 1,064 1,101
Long-term provisions 1,498 1,306
2,562 2,407

1. Additions exclude provisions reversed or utilized during the same year.

341
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

There are uncertainties regarding the timing and amount of the Other provisions of 182 and 187 at December 31, 2023 and
provisions above. Changes in underlying facts and 2022, respectively, are related to the Complementary
circumstances for each provision could result in differences in Agreement Term signed in 2021 between ArcelorMittal Brazil,
the amounts provided for and the actual outflows. In general, the Federal and State Prosecutor Offices and the Commission
provisions are presented on a non-discounted basis due to the representing affected people, which includes precautionary
uncertainties regarding the timing or the short period of their evacuation of the communities close to the Serra Azul dam, as
expected consumption. well as the commitment to implement action plans to ensure the
stability, security and decommissioning of the tailing dam. Other
Environmental provisions have been estimated based on provisions also comprise technical warranties and guarantees.
internal and third-party estimates of contamination, available
remediation technology, and environmental regulations. Environmental Liabilities
Estimates are subject to revision as further information develops ArcelorMittal’s operations are subject to a broad range of laws
or circumstances change. and regulations relating to the protection of human health and
the environment at its multiple locations and operating
Provisions for emission obligations are recognized to cover the subsidiaries. As of December 31, 2023, excluding asset
shortage between the Company's CO2 emissions and the retirement obligations, ArcelorMittal had established provisions
allowances granted, based on the market value of the CO2 of 620 for environmental remedial activities and liabilities. The
allowances as of the reporting date or purchase price of the provisions for all operations by geographic area included mainly
acquired CO2 emission rights. In 2023 provisions for emission 427 in Europe, 98 in South Africa and 91 in Canada. In addition,
obligations decreased as a result of the settlement of the 2022 ArcelorMittal and the previous owners of its facilities have
shortage through surrendering the corresponding CO2 emission expended substantial amounts to achieve or maintain ongoing
rights to the environmental authorities and lower CO2 emissions compliance with applicable environmental laws and regulations.
during the year as a result of lower production mainly in Europe ArcelorMittal expects to continue to expend resources in this
(see note 4.5). respect in the future.

The Company uses derivative financial instruments and spot Europe

purchases to manage its exposure to fluctuations in prices of Environmental provisions for ArcelorMittal’s operations in
emission rights allowances. See note 6.3 for the details of the Europe total 427 and are mainly related to the investigation and
cash flow hedging in place for emission rights, note 4.5 for CO2 remediation of environmental contamination at current and
emission rights held as current assets and note 5.1 for CO2 former operating sites in Belgium (208), Luxembourg (78),
emission rights held as Intangible non-current assets. The France (58), Poland (40), Germany (34) and Spain (8). This
Company also receives indirect compensation through rebates investigation and remediation work relates to various matters
on its energy tariffs. such as decontamination of water discharges, waste disposal,
cleaning water ponds and remediation activities that involve the
Provisions for site restoration are related to costs in connection
clean-up of soil and groundwater. These provisions also relate
with the dismantling of site facilities, mainly in France and
to human health protection measures such as fire prevention
Poland, of which 66 and 79 at December 31, 2023 and 2022,
and additional contamination prevention measures to comply
respectively, with respect to the dismantling of the Florange
with local health and safety regulations.
liquid phase.
Belgium
Provisions for staff related obligations primarily concern Brazil
In Belgium, environmental provisions of 208 mainly relate to
and are related to various employees’ compensation.
legal site remediation obligations linked to the closure of the
Provisions for voluntary separation plans primarily relate to primary installations at the Liège site of ArcelorMittal Belgium.
plans in Spain, France and Brazil, which are expected to be The provisions also include the external recovery and disposal
settled within one year. of waste, residues or by-products that cannot be recovered
internally at the ArcelorMittal Ghent and Liège sites and the
Provisions for litigation include losses relating to present legal removal and disposal of material containing asbestos.
obligations that are considered to be probable see also note 9.3.
Luxembourg
In 2023 and 2022 provisions for commercial agreements and In Luxembourg, environmental provisions of 78 relate to the
onerous contracts were primarily linked to onerous contracts in post-closure monitoring and remediation of former production
Poland and Spain. sites, waste disposal areas, slag deposits and mining sites.
They include 33 with respect to obligations to secure, stabilize
and conduct waterproofing treatment in mining galleries and
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 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

various dumping areas in Mondercange, Dommeldange and Zdzieszowice, Dabrowa Górnicza and to dispose of the residues
Dudelange. In addition, a 26 provision is recognized with from a landfill in Lipówka which cannot be internally recycled or
respect to the covering process of the Differdange dump which externally recovered in Dabrowa Gornicza, the storage and
was used for disposal of ladle slag, sludge and certain other disposal of iron-bearing sludge which cannot be reused in the
residues coming from different Luxembourg sites. manufacturing process under the environmental law.

France Germany
In France, environmental provisions of 58 principally relate to In Germany, the 34 environmental provision essentially relates
the remediation of former sites, including several coke plants, to ArcelorMittal Bremen’s post-closure obligations at the Prosper
and the capping and monitoring of landfills or basins previously coke plant in Bottrop mainly established for soil remediation,
used for residues and secondary material. groundwater treatment and monitoring.

The remediation of the coke plants relates mainly to the South Africa
Thionville, Moyeuvre-Grande, Homecourt, Hagondange and AMSA has environmental provisions of 98 mainly relating to
Micheville sites, and is related to the treatment of soil and environmental remediation obligations attributable to historical
groundwater. At the Thionville coke plant, soil remediation has or legacy settling/evaporation dams and waste disposal
been completed, while additional investigations are ongoing for activities. An important determinant in the final timing of the
groundwater. remediation work relates to obtaining the necessary
environmental authorizations.
ArcelorMittal is responsible for closure and final rehabilitation of
the rest of the site corresponding to the former Conroy and A provision of 26 relates to the decommissioned Pretoria Works
Pérotin slag-heaps, for which the administrative procedure for site. This site is in a state of care and maintenance with ongoing
cessation of activity is underway but due to the COVID-19 rehabilitation. AMSA transformed this old plant into an industrial
pandemic the project slowed down and the remediation has hub for light industry since the late 1990s. Particular effort is
been postponed to 2024 due to change of regulator. In other directed to landfill sites, with sales of slag from legacy disposal
sites, ArcelorMittal France is responsible for monitoring the sites to vendors in the civil construction industry continuing
concentration of organic compound and heavy metals in soil and unabated, but other remediation works continued at a slow pace
groundwater on all former sites closed and/or already as remediation actions for these sites are long-term in nature.
remediated. The Florange coke plant was idled in 2020 and is
now under investigation for its demolition and remediation. The Vanderbijlpark Works site, the main flat carbon steel
operation of AMSA, contains a number of legacy facilities and
ArcelorMittal France has an environmental provision that areas requiring remediation. The remediation entails the
principally relates to the remediation and improvement of implementation of rehabilitation and decontamination measures
storage of secondary materials, the disposal of waste at of waste disposal sites, waste water dams, ground water and
different ponds and landfills and an action plan for removing historically contaminated open areas. Provisions relating to this
asbestos from the installations and mandatory financial site amount to 15.
guarantees to cover risks of major accident hazard or for
gasholders and waste storage. Most of the provision relates to The Newcastle Works site is the main long carbon steel
the stocking areas at the Dunkirk site that will need to be operation of AMSA. A provision of 23 relates to this site. As with
restored to comply with local law and to the mothballing of the all operating sites of AMSA, the above retirement and
liquid phase in Florange, including study and surveillance of soil remediation actions dovetail with numerous large capital
and water to prevent environmental damage, treatment and expenditure projects dedicated to environmental management.
elimination of waste and financial guarantees requested by In the case of the Newcastle site, the major current
public authorities. Environmental provisions also include environmental capital project is for air quality improvements,
treatment of slag dumps at the Florange and Dunkirk sites as waste site remediation and storm water management.
well as removal and disposal of material containing asbestos at
A provision of 33 relates to the environmental rehabilitation of
the Dunkirk and Mardyck sites.
the Thabazimbi mine. AMSA holds an environmental trust which
Poland holds investments for a value of 24 that will be used for
ArcelorMittal Poland’s environmental provision of 40 includes 27 rehabilitation purposes.
for cleaning and remediation costs following the closure of
Canada
primary facilities in Kraków and land remediation of post-
In Canada, ArcelorMittal Dofasco has a 31 environmental
industrial areas in Ruszca (district of Kraków); the remaining 13
provision for the expected cost of remediating toxic sediment
relate to the obligation to reclaim landfills in Kraków,
located in the Company’s East Boatslip site, for which
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(millions of U.S. dollar, except share and per share data)

management is in process of reviewing the tenders for initiating In Brazil, AROs relate to legal obligations to clean and restore
the expenditure. the mining areas of Serra Azul and Andrade, both located in the
State of Minas Gerais.
Asset Retirement Obligations (“AROs”)
AROs arise from legal requirements and represent In Poland, AROs relate to the legal obligation to decontaminate
management’s best estimate of the present value of the costs and recultivate a land in Krakow following closure of the
that will be required to retire plant and equipment or to restore a operations.
site at the end of its useful life, mainly in connection with mining
operations. As of December 31, 2023, ArcelorMittal had In Bosnia and Herzegovina, ARO relates to re-cultivation of
established provisions for asset retirement obligations of 380, dump yard of old iron ore pit Buvac and closing dam Medjedja.
including mainly 150 for Canada, 63 for Mexico, 47 for Ukraine,
9.2 Other long-term obligations
47 for Germany, 30 for Brazil, 19 for Liberia and 11 for South
Africa. As of December 31, 2023, AROs related to mining Balance at December 31,
activities and total undiscounted amount of site restoration 2023 2022
obligations amounted to 293 and 934, respectively. Derivative financial instruments (notes 6.1
and 6.3) 76 45
AROs in Canada are legal obligations for site restoration and Payable from acquisition of financial
assets 125 85
dismantling of the facilities near the mining sites in Mont-Wright
Unfavorable contracts 233 92
and Fire Lake, and the accumulation area of mineral substances
at the facility of Port-Cartier in Quebec, upon closure of the Income tax payable 185 202
mines pursuant to the restoring plan of the mines. In addition, Put option liability ArcelorMittal Texas HBI
(note 11.5.2) 158 181
Dofasco has legal obligations for the former Sherman Mine site
Put option liability Sonasid (note 11.5.2) 116 122
near Temagami, Ontario.
Other 168 187
AROs in Mexico relate to the restoration costs of the Las Total 1,061 914
Truchas, El Volcan, San Jose and the joint operation Peña
Colorada iron ore mines. As of December 31, 2023 and 2022, payable from acquisition of
financial assets included 52 and 66 respectively related to
AROs in Ukraine are legal obligations for site rehabilitation at
AMNS India's debt guarantee (see note 9.4).
the iron ore mining site in Kryvyi Rih, upon closure of the mine
pursuant to its restoration plan. Unfavorable contracts of 233 and 92 as of December 31, 2023
and 2022, respectively, mainly related to ArcelorMittal Pecém
In Germany, AROs principally relate to the Hamburg site, which
(see note 2.2.4) and ArcelorMittal Brasil.
operates on leased land with the contractual obligation to
remove all buildings and other facilities upon the termination of As of December 31, 2023, the income tax payable mainly
the lease, and to the Prosper coke plant in Bottrop for filling the related to income tax contingencies (in majority unasserted
basin, restoring the layer and stabilizing the shoreline at the claims) and withholding tax.
harbor.
9.3 Contingent liabilities
In Liberia, AROs relate to iron ore mine and associated
infrastructure and mine related environmental damage and Tax Claims
compensation. They cover the closure and rehabilitation plan ArcelorMittal is a party to various tax claims. As of
under both the current operating phase and the not yet December 31, 2023, ArcelorMittal had recorded short-term and
completed Phase 2 expansion project. long-term liabilities related to income tax contingencies of 50
and provisions for non-income tax claims in the aggregate of 81
AROs in South Africa are for the Pretoria, Vanderbijlpark, for which it considers the risk of loss to be probable. Set out
Saldanha, Newcastle as well as the Coke and Chemical sites, below is a summary description of the tax claims (i) for which
and relate to the closure and clean-up of the plant associated ArcelorMittal had recorded a provision as of December 31,
with decommissioned tank farms, tar plants, chemical stores, 2023, (ii) that constitute a contingent liability, (iii) that were
railway lines, pipelines and defunct infrastructure. resolved in 2023 or (iv) that were resolved and had a financial
impact in 2022 or 2021, in each case involving amounts deemed
In Belgium, AROs are to cover the demolition costs for the
material by ArcelorMittal. The Company is vigorously defending
primary facilities at the Liège site.
against the pending claims discussed below.

344
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Brazil merger of Arcelor and Mittal Steel N.V. in 2007. After lower court
In 2011, ArcelorMittal Brasil received 21 separate tax decisions and appeals in November 2022, the second instance
assessments from the Revenue Service of the State of Espirito of the administrative tribunal cancelled the tax assessment. In
Santo for ICMS (a value-added tax) in an amount which totaled January 2023, the Federal Revenue Service filed an appeal to
30 relating to a tax incentive (INVEST) it used. The dispute the third instance of the administrative tribunal.
concerns the definition of fixed assets. Following a series of
decisions and appeals (partially favorable) over a ten-year In December 2020, ArcelorMittal Brasil received a tax
period, in July 2021, ArcelorMittal Brasil filed 4 lawsuits (in assessment of 44 with respect to the 2015-2016 tax years,
relation to 21 tax assessments received in 2011) to discuss the related to the amortization of goodwill resulting from the MTO
remaining amount in the court of first instance. All these cases made by ArcelorMittal (ex-Mittal Steel N.V.) to the minority
are pending trial as of December 31, 2023. shareholders of Arcelor Brasil in connection with the two-step
merger of Arcelor and Mittal Steel N.V. in 2007. ArcelorMittal
In 2011, ArcelorMittal Brasil received a tax assessment for Brasil filed its defense in the first instance of the administrative
corporate income tax (known as IRPJ) and social contributions tribunal in January 2021 which issued an unfavorable decision
on net profits (known as CSL) in relation to (i) the amortization in August 2021. ArcelorMittal Brasil filed an appeal to the second
of goodwill on the acquisition of Mendes Júnior Siderurgia (for instance of the administrative tribunal in September 2021.
the 2006 and 2007 fiscal years), (ii) the amortization of goodwill
arising from the mandatory tender offer ("MTO") made by In the period from 2014 to 2018, ArcelorMittal Brasil received
ArcelorMittal (ex-Mittal Steel N.V.) to minority shareholders of tax assessments from the Federal Revenue Service in the
Arcelor Brasil in connection with the two-step merger of Arcelor amount of 46 disputing its use of credits for PIS and COFINS
and Mittal Steel N.V. (for the 2007 tax year), (iii) expenses social security taxes in 2010, 2011 and 2013. The disputes
related to pre-export financing used to finance the MTO, which relate to the concept of production inputs in the context of these
were deemed by the tax authorities to be unnecessary for taxes. In four of the cases, the tax assessments have been
ArcelorMittal Brasil since the expenses were incurred to buy partially reduced and ArcelorMittal Brasil's subsequent appeals
shares of its own company and (iv) CSL over profits of to dispute the remaining amounts are currently pending. One of
controlled companies in Argentina and Costa Rica. The amount these cases has already closed at the administrative level and is
claimed now totals 500 and the ArcelorMittal Brasil's appeal pending a decision at the first judicial level. In the fifth case, the
against the second instance decision largely favorable to the administrative tribunal of the first instance upheld the tax
Federal Revenue Service has been pending trial with the third assessment in March 2017, and ArcelorMittal Brasil appealed to
instance of the administrative tribunal since March 2018. the second instance of the administrative tribunal. In the sixth
case, the first instance of the administrative tribunal issued an
In April 2016, ArcelorMittal Brasil received a tax assessment in unfavorable decision in April 2017, and ArcelorMittal Brasil
relation to (i) the amortization of goodwill resulting from the MTO appealed to the second instance of the administrative tribunal.
made by ArcelorMittal (ex-Mittal Steel N.V.) to the minority Subsequently, the Superior Court decided two leading cases,
shareholders of Arcelor Brasil in connection with the two-step not involving ArcelorMittal Brasil, that are expected to strengthen
merger of Arcelor and Mittal Steel N.V. in 2007 and (ii) the ArcelorMittal’s defense in the sixth case in which part of the
amortization of goodwill resulting from ArcelorMittal Brasil’s contingency is related to scrap acquisition. In February 2011,
acquisition of CST in 2008. While the assessment, if upheld, ArcelorMittal Brasil also filed a claimant individual lawsuit on the
would not result in a cash payment as ArcelorMittal Brasil did PIS/COFINS credits over scrap acquisition matter, in which a
not have any tax liability for the fiscal years in question (2011 favorable and unappealable decision was issued in May 2022.
and 2012), it would result in a 68 financial impact arising from a Accordingly and as a result of this legal clarification, in 2022,
write off of 'net operating loss carry forward' with respect to the ArcelorMittal recorded PIS/COFINs tax credits in cost of sales in
2011-2012 tax year. ArcelorMittal Brasil's appeal against the the amount of 300 with respect to prior periods.
unfavorable decision on the lower instances of the assessment
has been awaiting judgment in the third instance of the In May 2014, ArcelorMittal Comercializadora de Energia
administrative tribunal since November 2019. received a tax assessment from the state of Minas Gerais
alleging that the company did not correctly calculate tax credits
In December 2018, ArcelorMittal Brasil received a tax on interstate sales of electricity from February 2012 to
assessment of 126, which could have an additional 22 financial December 2013. The amount claimed totals 40. Following the
impact arising from a write off of 'net operating loss carry conclusion of this proceeding at the administrative level, the
forward' with respect to the 2013-2014 tax years, principally in company received the tax enforcement notice in December
relation to the amortization of goodwill resulting from the MTO 2015 and filed its defense in February 2016. In April 2016,
made by ArcelorMittal (ex-Mittal Steel N.V.) to the minority ArcelorMittal Comercializadora de Energia received an
shareholders of Arcelor Brasil in connection with the two-step
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(millions of U.S. dollar, except share and per share data)

additional tax assessment in the amount, of 58, after taking In January 2023, ArcelorMittal Brasil received a tax assessment
account of a reduction of fines mentioned below regarding the in an amount of 16 for a 50% fine for alleged non-payment of
same matter, for infractions which allegedly occurred during the the monthly estimate of CIT related to fiscal year 2018. The
2014 to 2015 period, and filed its defense in May 2016. Federal Revenue accuses the company of undue offsetting of
Following appeal, the company received a notice from the tax CIT credits paid in Venezuela from 2010 to 2014 when
authority in November 2017 that reduced the fees in the second calculating the monthly IRC estimate for 2018. In February
case by 12, due to retrospective application of a new law. In 2023, ArcelorMittal Brasil filed its defense. In September 2023,
addition, in February 2019, a reduction of the fine by 7 was the first administrative instance ruled against the company and
finalized in the first case due to the retrospective application of a ArcelorMittal filed an appeal. In November 2023, ArcelorMittal
new law. The cases are currently pending in the first judicial Brasil received a new tax assessment of 60. The Federal
instance. Revenue accuses the company of allegedly undue offsetting of
CIT credits paid in Venezuela from 2010 to 2014 and offset by
In 2015, ArcelorMittal Brasil received nine tax assessments from ArcelorMittal Brasil in 2018. In December 2023, the company
the state of Rio Grande do Sul alleging that the company, filed an administrative defense. Both cases are currently
through its branches in that state, had not made advance pending.
payments of ICMS on sales in that state covering the period
from May 2010 to April 2015. The amount claimed totals 89. In In 2010, ArcelorMittal Brasil received a first tax assessment for
the Administrative instance, all the cases were unfavorably BRL 94 million (19) arguing that the company should not have
closed. ArcelorMittal Brasil filed 5 lawsuits to discuss the matter. used a tax incentive granted by the State of Bahia, according to
In the first judicial instance, ArcelorMittal Brasil obtained a which taxpayers could take ICMS credit on the value of freight
largely favorable decisions in all cases. There were appeals paid by them, since AMTC is not a real plant (for the period from
from the company and the tax authority. In September 2022, the March 2008 to December 2009). Furthermore, the company
second judicial instance ruled a largely favorable decision to the also used the tax incentive (“Proauto”), which may not be
company in one case (in amount of 4). In November 2023, the combined with another tax benefit. In 2012, this case was
second judicial instance ruled a largely favorable decision in the closed unfavorably at the administrative level and the company
Company in two cases (in the amount of 9). In December 2023, filed a lawsuit to discuss the tax charge with the the court of first
the court of the second judicial instance ruled against the instance. In 2023, the company obtained a favorable decision
Company in another case (in the amount of 1) and began from the court of first instance, canceling the assessment.
adjudicating the last case (in the amount of 73) for which the Currently, the case is awaiting a trial by the court of second
trial is pending. instance. In June 2014, the company received a second tax
assessment of BRL 23 million (5) discussing the same matter,
On May 17, 2016, ArcelorMittal Brasil received a tax but related to a different period (from June 2010 to December
assessment from the state of Santa Catarina in the current 2012). In 2017, the administrative level judged the assessment
amount of 128 alleging that it had used improper methods to partially in favor of the company (cancelling the taxes, but
calculate the amount of its ICMS credits. In the Administrative maintaining the fines) and the company filed a lawsuit, which is
instance, the case was unfavorably closed in November 2020, awaiting a decision from the court of first instance. In December
and ArcelorMittal Brasil filed a lawsuit to challenge the 2014, the company received a third tax assessment of BRL 20
assessment. The case is pending at the judicial instance million (4) discussing the same matter, but related to a different
currently. period (from January 2013 to December 2013). In 2015, the
administrative court of first instance ruled unfavorably to the
In January 2023, ArcelorMittal Brasil received a tax assessment
company and the company filed an appeal, currently pending
from the Federal Revenue Service in an amount of 156 in which
trial. In November 2022, the company received a fourth tax
the tax authority rejected the offsetting of PIS/COFINS credits
assessment of BRL 114 million (24) resulting from the use of the
used by the company in 2018. The dispute relates to various
accumulated credit, which, according to the tax authorities,
types of credits such as credits recognized in Court processes
could not be used because it had already been extinguished by
(exclusion of ICMS from the PIS and COFINS calculation base,
the statute of limitations. In May 2023, the administrative court
PIS/COFINS credits in the Manaus Free Trade Zone), expenses
of first instance dismissed the defense. In June 2023, the
related to the acquisition of scrap (including freight), expenses
company filed an appeal to the administrative court of second
related to port handling, and expenses for freight for finished
instance and the appeal is currently pending.
products. ArcelorMittal Brasil filed an administrative defense in
February 2023. In November 2023, the company was notified of Mexico
the unfavorable decision and filed an appeal in December 2023. In 2015, the Mexican Tax Administration Service issued a tax
assessment to ArcelorMittal Mexico, with respect to 2008,

346
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

principally due to improper interest deductions relating to certain this case partially in the amount of 3.4 billion UAH (90). Further,
loans, and unpaid corporate income tax for interest payments in January 2024, the tax authority filed to the Dnipro District
that the tax authority categorized as dividends. ArcelorMittal Administrative Court the request to review the case based on
Mexico's complaint for annulment before a Federal newly discovered circumstances, court opened proceedings.
Administrative and Tax Court is pending. The amount of the tax The amount of the new lawsuit is around $35,500.
assessment as of December 31, 2023 is 247.
Competition/Antitrust Claims
In October 2018, the Mexican Tax Administration Service issued ArcelorMittal is a party to various competition/antitrust claims. As
a tax assessment to ArcelorMittal Las Truchas, with respect to of December 31, 2023, ArcelorMittal had recorded a non-
2013 due to: (i) improper interest deductions relating to certain material amount provision in respect of such claims. Set out
loans (ii) non-deduction of advanced rent payments and (iii) below is a summary description of competition/antitrust claims
non-deduction of rolling roll expenses. In November 2018, (i) that constitute a contingent liability, (ii) that were resolved in
ArcelorMittal Las Truchas filed an administrative appeal before 2023 or (iii) that were resolved and had a financial impact in
the Administrative Authority on Federal Tax Matters, which was 2022 or 2021, in each case involving amounts deemed material
rejected in June 2019 and is being appealed. Therefore, in by ArcelorMittal. The Company is vigorously defending against
August 2019, ArcelorMittal Las Truchas filed an annulment each of the pending claims discussed below.
complaint before a Federal Administrative and Tax Court. In
June 2023, the Federal Administrative and Tax Court ruled Brazil
against the annulment claim. In July 2023, ArcelorMittal Las In September 2000, two construction trade organizations filed a
Truchas filed an appeal before the Court of Appeal. The amount complaint with Brazil’s Administrative Council for Economic
of the tax assessment as of December 31, 2023 is 129. Defense (“CADE”) against three long steel producers, including
ArcelorMittal Brasil. The complaint alleged that these producers
On February 24, 2023, the Tax Administration Service notified colluded to raise prices in the Brazilian rebar market, thereby
ArcelorMittal Las Truchas of a tax assessment, with respect to violating applicable antitrust laws. In September 2005, CADE
2014. In April 2023, ArcelorMittal Las Truchas filed an issued its final decision against ArcelorMittal Brasil, imposing a
administrative appeal in respect of this assessment before the fine of 75. ArcelorMittal Brasil's appeal of the court judgment
Tax Administrative Service. The amount of the tax assessment against it is currently pending.
as of December 31, 2023 is 112.
There is also a related class action commenced by the Federal
Ukraine Public Prosecutor of the state of Minas Gerais against
In October 2019, AMKR received orders from Ukrainian tax ArcelorMittal Brasil for damages in an amount of 83 based on
authorities covering the findings of a tax audit for the period from the alleged violations investigated by CADE. The injunction
2015 through the first quarter of 2019 which claimed the requested by the Federal Prosecution Office was denied.
company owes additional taxes of 278 for that period. AMKR
appealed these orders to the tax authorities resulting in a A further related lawsuit was commenced in February 2011 by
significant reduction of the amounts claimed. In January 2020, four units of Sinduscons, a civil construction trade organization,
AMKR filed three legal actions with the Kyiv District in federal court in Brasilia against, inter alia, ArcelorMittal Brasil
Administrative Court seeking to cancel the remaining additional claiming damages based on an alleged cartel in the rebar
charges amounting to 128. The three cases were later merged market as investigated by CADE and as noted above.
into one case (hereinafter called 'First case') and moved to the
Other Legal Claims
Dnipro District Administrative Court. In February 2023, the Court
ArcelorMittal is a party to various other legal claims. As of
dismissed the entirety of the claim except for an amount of
December 31, 2023, ArcelorMittal had recorded provisions of
$50,000. The tax authorities appealed the decision in April 2023.
268 for other legal claims in respect of which it considers the
In July 2023, the Court dismissed the tax authorities appeal and
risk of loss to be probable. Set out below is a summary
upheld the first instance decision. In April 2023, tax authorities
description of the other legal claims (i) in respect of which
filed an appeal claim to the Third Administrative Appellate Court.
ArcelorMittal had recorded a provision as of December 31,
Court opened appeal proceedings and in July 2023, the Third
2023, (ii) that constitute a contingent liability, (iii) that were
Administrative Appellate Court left the tax authority's appeal
resolved in 2023, or (iv) that were resolved and had a financial
unsatisfied, and the decision of the first instance remained
impact in 2022 or 2021, in each case involving amounts deemed
unchanged. In September 2023, the Supreme Court opened the
material by ArcelorMittal. The Company is vigorously defending
cassation proceedings on the claim of tax authority. In
against each of the claims discussed below that remain
November 2023, the Supreme Court satisfied the cassation
pending.
claim of the tax authority partially and changed decisions of the
courts of first and appellate instances. Therefore, AMKR won
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 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Argentina net loss after tax of approximately 126 (67 net of partial recovery
Over the course of 2007 to 2021, the Argentinian Customs through dividend payment from SITREL) in 2022.
Office Authority (“Aduana”) notified Acindar, of certain inquiries
that it was conducting with respect to prices declared by Acindar On March 30, 2022, Votorantim S.A. (“Votorantim”) exercised
related to iron ore imports. The Customs Office Authority was the put option right it has under its shareholders’ agreement with
seeking to determine whether Acindar incorrectly declared the Company to sell its entire equity interest in ArcelorMittal
prices for iron ore imports from several different Brazilian and Brasil to the Company, following the acquisition of Votorantim's
Bolivian suppliers and from ArcelorMittal Sourcing originally on long steel business in Brazil in 2018. There is a dispute between
39 different claims concerning several shipments made between the parties as to the value of the put option. Votorantim has
2002 and 2021. The investigations are subject to the valued the put option at BRL 5.283 billion (i.e. 1,091). In
administrative procedures of the Customs Office Authority and September 2022, Votorantim commenced an arbitration against
are at different procedural stages depending on the filing date of ArcelorMittal Brasil seeking the full amount of its value of the put
the investigation. In March 2018, the Customs Office Authority option, which would be reduced by the undisputed amount
issued a general instruction that ordered customs to withdraw ArcelorMittal Brasil accepts as the value of the put option and
current claims related to the difference between import prices in which was paid in January 2023 for 179 (see note 11.5.2). The
Argentina and export prices of iron ore when exiting Brazil, parties have filed their respective statements of defense in the
which has led to a reduction in the number of claims and arbitration and the case is currently pending.
amounts claimed against Acindar. In addition, other cases have
Italy
been dismissed by the National Tax Court. As of December
In January 2010, ArcelorMittal received notice of a claim filed by
2023, the aggregate amount claimed by the Customs Office
Finmasi S.p.A. relating to a memorandum of agreement (“MoA”)
Authority in respect of all iron ore shipments is 90 in 17 different
entered into between ArcelorMittal Distribution Services France
cases. Of these 17 cases, 6 are still in the administrative branch
(“AMDSF”) and Finmasi in 2008. The MoA provided that AMDSF
of the Customs Office Authority and the other 11 cases, in which
would acquire certain of Finmasi’s businesses for an amount not
the administrative branch of the Customs Office Authority ruled
to exceed 114, subject to the satisfaction of certain conditions
against Acindar, have been appealed to the Argentinian National
precedent, which, in AMDSF’s view, were not fulfilled. Finmasi
Fiscal Court.
sued for (i) enforcement of the MoA, (ii) damages of 17 to 29 or
Brazil (iii) recovery costs plus quantum damages for Finmasi’s alleged
In 2015, the SINDIMETAL (employees’ union) filed a lawsuit lost opportunity to sell to another buyer. In September 2011, the
against ArcelorMittal Brasil to annul all the collective labor court rejected Finmasi’s claims other than its second claim. The
agreements related to 12-hour work shifts. The case impacts a court appointed an expert to determine the quantum of
group of approximately 2,500 employees. In July 2022, the damages. In May 2013, the expert’s report was issued and
Supreme Court decided a leading case, not involving valued the quantum of damages in the range of 46 to 73.
ArcelorMittal Brasil, that may favorably impact ArcelorMittal ArcelorMittal appealed the decision on the merits. In January
Brasil's case, which is currently pending on appeal. 2019, Finmasi called on the AMDSF guarantee issued in the
context of the enforcement proceedings that were suspended in
In April 2017, a shareholder in Siderúrgica Três Lagoas 2015. After a series of appeals, Finmasi has repaid half of the
(“SITREL”) (of which ArcelorMittal Brasil is the other amount of the guarantee that was called and provided a bank
shareholder), commenced an arbitration against Votorantim guarantee for the remainder. In December 2022, the Court
Siderurgia S.A. (which subsequently merged into ArcelorMittal found that AMDSF has the right to obtain restitution of
Brasil) and SITREL with the Center for Arbitration and Mediation approximately 28 paid to Finmasi and ordered Finmasi to pay
of the Chamber of Commerce Brazil-Canada (CAM-CCBC). The the half still outstanding (approximately 13.9) plus interest and
dispute concerns a provision in SITREL’s joint venture certain costs. In February 2023, Finmasi filed an appeal to the
agreement relating to the formula used to determine the selling Court of Cassation. AMDSF duly filed its defense in March 2023.
price for steel billets supplied by ArcelorMittal Brasil to SITREL
from January 2013 onwards. The shareholder has alleged that
the steel billets were overpriced and is seeking compensation
for overpaid amounts on both a retrospective and prospective
basis, with the initial amount claimed totaling 33. In April 2022, a
final arbitral award was issued, which has been satisfied by
ArcelorMittal Brasil. Given ArcelorMittal Brasil’s ownership
interest in SITREL, the financial impact for ArcelorMittal was a

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Luxembourg guidance on the principles that would be used to determine the

In June 2012, the Company received writs of summons in exchange ratio in the second-step merger and that the merger
respect of claims made by 59 former employees of ArcelorMittal exchange ratio was relevant and reasonable to shareholders of
Luxembourg. The claimants allege that they are owed both merged entities.
compensation based on the complementary pension scheme
that went into effect in Luxembourg in January 2000. The Set out below is a summary of the ongoing matter in this regard.
aggregate amount claimed by such former employees (bearing Several other claims brought before other courts and regulators
in mind that other former employees may bring similar claims) is on similar grounds were dismissed and are definitively closed.
61. Given the similarities in the claims, the parties agreed to limit
On May 15, 2012, ArcelorMittal received a writ of summons on
the pending proceedings to four test claims. In April 2013, the
behalf of Association des Actionnaires d'Arcelor ("AAA"), a
Esch-sur-Alzette labor court rejected two of these test claims.
French association of former minority shareholders of Arcelor to
The relevant plaintiffs are appealing these decisions. In
appear before the civil court of Paris. The AAA alleged in
November 2013, the Luxembourg city labor court rejected the
particular that, based on Mittal Steel’s and Arcelor’s disclosure
two other test claims, which were appealed but were terminated
and public statements, investors had a legitimate expectation
by the court in November 2021. A final decision for the two pilot
that the exchange ratio in the second-step merger would be the
cases of Esch-sur-Alzette is expected by the end of 2024.
same as that of the secondary exchange offer component of
France Mittal Steel’s June 2006 tender offer for Arcelor (i.e., 11 Mittal
Retired and current employees of certain French subsidiaries of Steel shares for 7 Arcelor shares), and that the second-step
ArcelorMittal have initiated lawsuits to obtain compensation for merger did not comply with certain provisions of company law.
asbestos exposure in excess of the amounts paid by French AAA claimed, inter alia, damages in a nominal amount and
social security (“Social Security”). Asbestos claims in France reserved the right to seek additional remedies including the
initially are made by way of a declaration of a work-related cancellation of the merger. The proceedings before the civil
illness by the claimant to the social security authorities resulting court of Paris were stayed, pursuant to a ruling of such court on
in an investigation and a level of compensation paid by social July 4, 2013, pending a preparatory investigation (instruction
security. Once the social security authorities recognize the work- préparatoire) by a criminal judge magistrate (juge d’instruction)
related illness, the claimant, depending on the circumstances, triggered by the complaints of AAA and several hedge funds
can also file an action for inexcusable negligence (faute (who quantified their total alleged damages at 282). The
inexcusable) to obtain additional compensation from the dismissal of charges (non-lieu) ending the preparatory
employer before a special tribunal. For faute inexcusable cases, investigation became final in March 2018. On March 6, 2020
the primary health insurance fund, CPAM - advances, the AAA revived its claim before the civil court of Paris on its behalf
amount of damages and pension increase are reimbursed by and on behalf of the hedge funds who had also filed a criminal
the employer found at fault and takes recourse action against complaint, as well as two new plaintiffs. The complaint filed by
the employer. AAA quantifies the total damages claimed at 431 (€390 million).
A final hearing date for oral arguments has been scheduled for
The number of claims outstanding for asbestos exposure at June 2024.
December 31, 2023 was 243 as compared to 308 at
December 31, 2022. 9.4 Commitments
December 31,
Minority Shareholder Claims Regarding the Exchange Ratio in
2023 2022
the Second-Step Merger of ArcelorMittal into Arcelor
Commitments related to purchases of raw 11,346 11,668
ArcelorMittal is the company that results from the acquisition of materials and energy
Arcelor by Mittal Steel N.V. in 2006 and a subsequent two-step Guarantees, pledges and other collateral 8,888 8,470
merger between Mittal Steel and ArcelorMittal and then Capital expenditure commitments 2,799 2,930
ArcelorMittal and Arcelor. Following completion of this merger
Other commitments 1,374 1,533
process, several former minority shareholders of Arcelor or their
Total 24,407 24,601
representatives brought legal proceedings regarding the
exchange ratio applied in the second-step merger between
ArcelorMittal and Arcelor and the merger process as a whole. Commitments related to purchases of raw materials and energy
Purchase commitments consist primarily of major agreements
ArcelorMittal believes that the allegations made and claims for procuring iron ore, coking coal, coke and hot metal. The
brought by such minority shareholders are without merit and that Company also has a number of agreements for electricity,
the exchange ratio and merger process complied with the industrial and natural gas, scrap and freight. In addition to those
requirements of applicable law, were consistent with previous purchase commitments disclosed above, the Company enters

349
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

into purchasing contracts as part of its normal operations which Capital expenditure commitments
have minimum volume requirements but for which there are no Capital expenditure commitments relate to commitments with
take-or-pay or penalty clauses included in the contract. The respect to purchases of property, plant and equipment including
Company does not believe these contracts have an adverse in the context of expansion and improvement projects.
effect on its liquidity position.
Capital expenditure commitments include 507 and 340 at
Commitments related to purchases of raw materials and energy December 31, 2023 and 2022 relating to ArcelorMittal Liberia
included commitments given to associates for 1,487 and 1,661 Ltd in connection with Phase 2 expansion project that envisages
as of December 31, 2023 and 2022, respectively. Purchase the construction of 15 million tonnes of concentrate sinter fines
commitments given to associates included 704 and 691 as of capacity and associated infrastructure.
December 31, 2023 and 2022, respectively, related to the gas
supply agreement with Kryvyi Rih Industrial Gas. Purchase Capital expenditure commitments include 394 at December 31,
commitments included commitments given to joint ventures for 2023 and 2022 relating to ArcelorMittal Dofasco (Canada)
838 and 988 as of December 31, 2023 and 2022, respectively. mainly with respect to the construction of DRI – EAF facilities in
Purchase commitments given to joint ventures included 334 and the framework of the plant's decarbonization project.
424 related to Tameh and 413 and 442 related to Enerfos as of
Capital expenditure commitments also include 49 and 182 at the
December 31, 2023 and 2022, respectively.
iron ore Serra Azul mine (Brazil) at December 31, 2023 and
Guarantees, pledges and other collateral 2022 in connection with the construction of facilities to produce
Guarantees related to financial debt and credit lines given on 4.5 million tonnes per annum of DRI quality pellet feed.
behalf of third parties were 155 and 181 as of December 31,
Other commitments
2023 and 2022, respectively. Additionally, guarantees of 12 and
Other commitments given comprise mainly commitments
12 were given on behalf of associates and guarantees of 4,992
incurred for gas supply to electricity suppliers.
and 4,383 were given on behalf of joint ventures as of
December 31, 2023 and 2022, respectively. As of September 21, 2018 an Environmental Commitment
Agreement ("ECA") has been executed between ArcelorMittal
Guarantees given on behalf of joint ventures included 421 and
Brasil, local government and the Brazilian environmental
354 on behalf of Calvert, 208 and 178 on behalf of Al Jubail and
authorities. ArcelorMittal Brasil committed to carry out, over the
480 and 341 in relation to outstanding lease liabilities for vessels
next 5 years, a series of environmental operational and capital
operated by Global Chartering as of December 31, 2023 and
investments with the aim to reduce atmospheric emissions from
2022, respectively. Guarantees given on behalf of joint ventures
the Company's Tubarão site. To comply with the ECA
also included 3,490 and 3,088 as of December 31, 2023 and
requirements, ArcelorMittal Brasil may need to acquire new
2022 corresponding to ArcelorMittal's 60% guarantee of the debt
equipment and change some of its current operating methods
under the term loan agreements entered into by the AMNS India
and processes. As of December 31, 2023 and 2022,
joint venture with various Japanese banks.
ArcelorMittal Brasil estimated the underlying costs to implement
As of December 31, 2023, pledges and other collateral mainly those investments at 78 and 115, respectively. The non-
related to (i) mortgages entered into by the Company’s compliance with ECA would lead to fines amounting to a
operating subsidiaries and (ii) inventories and receivables maximum of 21 and 19 as of December 31, 2023 and 2022,
pledged to secure the South African Rand revolving borrowing respectively. On November 19, 2021, following a protocol of
base finance facility for the amount drawn of 162 and ceded intent agreed between the Minas Gerais State Government,
bank accounts to secure environmental obligations, true sale of ArcelorMittal Brasil and BMB Belgo Mineira Bekaert Artefatos
receivables programs and the revolving borrowing base finance De Arame Ltd ("BMB"), ArcelorMittal Brasil committed to carry
facility in South Africa of 98. Pledges of property, plant and out capital expenditures at the Monlevade site to complete the
equipment were 59 and 98 as of December 31, 2023 and 2022, expansion project by the second half of 2026. As of December
respectively. Other sureties, first demand guarantees, letters of 31, 2023 and 2022, commitments related to this project were
credit, pledges and other collateral included 319 and 375 of 348 and 420, respectively.
commitments given on behalf of associates as of December 31,
Commitments to sell
2023 and 2022, respectively, and 313 and 598 of commitments
In addition to the commitments presented above, the Company
given on behalf of joint ventures as of December 31, 2023 and
has firm commitments to sell for which it also has firm
2022, respectively.
commitments to purchase included in purchase commitments
for 131 and 368 as of December 31, 2023 and 2022,
respectively, and mainly related to natural gas and electricity.

350
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Other only recognized to the extent that it is probable that there will be
On July 6, 2023, the Luxembourg Parliament approved the law sufficient taxable profits against which the benefits of the
enabling the State of the Grand-Duchy of Luxembourg to temporary differences can be utilized and are expected to
exercise the right (following an agreement signed between reverse in the foreseeable future.
ArcelorMittal, the Fonds d'Urbanisation et d'Aménagement du
Plateau de Kirchberg and the State of the Grand-Duchy of Deferred tax assets and liabilities are measured at the tax rates
Luxembourg on December 20, 2022) to acquire 50% of that are expected to apply in the period in which the liability is
ArcelorMittal's future new headquarters and related right-of-use settled or the asset realized, based on tax rates (and tax laws)
of land in the Kirchberg district of the city of Luxembourg. The that have been enacted or substantively enacted at the
acquisition price is based on construction cost. The exercise consolidated statements of financial position date. The
date of the right has been extended to February 29, 2024. measurement of deferred tax assets and liabilities reflects the
tax consequences that would result from the manner in which
NOTE 10: INCOME TAXES the Company expects, at the reporting date, to recover or settle
the carrying amount of its assets and liabilities.
The current tax payable (recoverable) is based on taxable profit
(loss) for the year. Taxable profit differs from profit as reported in The carrying amount of deferred tax assets is reviewed at each
the consolidated statements of operations because it excludes consolidated statements of financial position date and reduced
items of income or expense that are taxable or deductible in to the extent that it is no longer probable that sufficient taxable
other years or are never taxable or deductible. The Company’s profits will be available to enable all or part of the asset to be
current income tax expense (benefit) is calculated using tax recovered. The Company reviews the deferred tax assets in the
rates that have been enacted or substantively enacted as of the different jurisdictions in which it operates to assess the
date of the consolidated statements of financial position. possibility of realizing such assets based on projected taxable
profit, the expected timing of the reversals of existing temporary
Tax is charged or credited to the consolidated statements of
differences, the carry forward period of temporary differences
operations, except when it relates to items charged or credited
and tax losses carried forward and the implementation of
to other comprehensive income or directly to equity, in which
planning strategies. Due to the numerous variables associated
case the tax is recognized in other comprehensive income or in
with these judgments and assumptions, both the precision and
equity.
reliability of the resulting estimates of the deferred tax assets
Deferred tax is recognized on differences between the carrying are subject to substantial uncertainties. In case a history of
amounts of assets and liabilities, in the consolidated financial recent losses is present, the Company considers whether
statements and the corresponding tax basis used in the convincing other evidence exists, such as the character of
computation of taxable profit, and is accounted for using the (historical) losses and planning opportunities, to support the
statements of financial position liability method. Deferred tax deferred tax assets recognition.
liabilities are generally recognized for all taxable temporary
Deferred tax assets and liabilities are offset when there is a
differences, and deferred tax assets are generally recognized
legally enforceable right to set off current tax assets against
for all deductible temporary differences and net operating loss
current tax liabilities, when they relate to income taxes levied by
carry forwards to the extent that it is probable that taxable profits
the same taxation authority and when the Company intends to
will be available against which those deductible temporary
settle its current tax assets and liabilities on a net basis.
differences can be utilized. Such assets and liabilities are not
recognized if the taxable temporary difference arises from the Uncertain (income) tax positions are periodically assessed by
initial recognition of non-deductible goodwill or if the differences the Company based on management’s best judgment given any
arise from the initial recognition (other than in a business changes in the facts, circumstances and information available
combination) of other assets and liabilities in a transaction that and applicable tax laws. When it is probable that the position
affects neither the taxable profit nor the profit reported in the taken in the tax return will not be accepted by the tax authorities,
consolidated statements of operations. the Group establishes provisions based on the most likely
amount of the liability (recovery) or weighted average of various
Deferred tax liabilities are recognized for taxable temporary
possible outcomes to reflect the effect of the uncertainty in
differences associated with investments in subsidiaries,
determining the related taxable profit (tax loss), tax bases,
associates and joint ventures, except if the Company is able to
unused tax losses, unused tax credits or tax rates, to the extent
control the reversal of the temporary difference and it is
that a reliable estimate can be made.
probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from deductible The Company has adopted International Tax Reform – Pillar
temporary differences associated with such investments are Two Model Rules (Amendments to IAS 12 upon their release on

351
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

May 23, 2023). The Amendments provide a temporary

Year ended December 31,
mandatory exception from deferred tax accounting for the top-up
2023 2022 2021
tax, which is effective immediately, and require new disclosures
Net income (loss) (including non-
about the Pillar Two exposure as of December 31, 2023. The controlling interests) 1,022 9,538 15,565
Company has applied a temporary mandatory relief from Income tax expense 238 1,717 2,460
deferred tax accounting for the impacts of the top-up tax and
Income before tax 1,260 11,255 18,025
accounts for it as a current tax when incurred.
Tax expense at the statutory rates
applicable to income in the
Pillar Two legislation has been enacted or substantively enacted countries1 454 2,818 4,146
in the jurisdiction of ArcelorMittal S.A., the ultimate parent of the Permanent items (101) (303) 500
Group, and in certain other jurisdictions where the Company
Rate changes — — 12
operates. The legislation is effective for the Company’s financial
Net change in measurement of
year beginning January 1, 2024. Based on the applicable deferred tax assets (423) (1,154) (2,956)
criteria, the Company is subject to Pillar Two minimum tax and Tax effects of foreign currency
has substantially performed the assessment of its potential translation (20) (34) —
exposure. The assessment that is being carried out is based on Tax credits (26) (22) (24)
the latest available tax filings, country-by-country reporting for Other taxes 324 394 688
2022, and the latest financial information for 2023, and Others 30 18 94
considers the Pillar Two legislation as enacted in Luxembourg
Income tax expense 238 1,717 2,460
and published by OECD rules and guidelines. Based on the
assessment carried out so far, ArcelorMittal does not expect a 1. Tax expense at the statutory rates is based on income before tax excluding
material impact of the Pillar Two legislation to the consolidated income from investments in associates, joint ventures and other investments.
financial statements. Nevertheless, as the rules are complex,
uncertainty exists and unforeseen outcomes of the Pillar Two
ArcelorMittal’s consolidated income tax expense is affected by
legislation may exceptionally result in additional top-up tax.
the income tax laws and regulations in effect in the various
10.1 Income tax expense countries in which it operates and the pre-tax results of its
The components of income tax expense (benefit) are subsidiaries in each of these countries, which can change from
summarized as follows: year to year. ArcelorMittal operates in jurisdictions, mainly in
Eastern Europe and Asia, which have a structurally lower
Year ended December 31,
corporate income tax rate than the statutory tax rate as enacted
in Luxembourg (24.94%), as well as in jurisdictions, mainly in
2023 2022 2021
Brazil and Mexico, which have a structurally higher corporate
Total current tax expense 1,008 2,080 2,953
income tax rate.
Total deferred tax expense
(benefit) (770) (363) (493)
Total income tax expense Permanent items Year ended December 31,
238 1,717 2,460
2023 2022 2021
The following table reconciles the expected tax expense at the Taxable reversals of (tax
deductible) write-downs on shares
statutory rates applicable in the countries where the Company and receivables (647) (109) 735
operates to the total income tax expense as calculated: Non-deductible loss on disposal of
Kazakhstan operations 573 — —
Juros sobre o Capital Próprio (117) (229) (323)
Other permanent items 90 35 88
Total permanent items (101) (303) 500

Taxable reversals of (tax deductible) write-downs on shares and

receivables: in connection with the Company's impairment test
for goodwill and property, plant and equipment, the
recoverability of the carrying amounts of investments in shares
and intragroup receivables is also reviewed annually, resulting in
tax deductible write-downs, or taxable reversals of previously
recorded write-downs, of the values of loans and shares of
consolidated subsidiaries in Luxembourg.

352
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Juros sobre o Capital Próprio: Corporate taxpayers in Brazil, Tax effects of foreign currency translation
which distribute a dividend can benefit from a tax deduction The tax effects of foreign currency translation of (20), (34)and nil
corresponding to an amount of interest calculated as a yield on at December 31, 2023, 2022 and 2021, respectively, refer
capital. The deduction is determined as the lower of the interest mainly to deferred tax assets and liabilities of certain entities
as calculated by application of the Brazilian long term interest with a different functional currency than the currency applied for
rate on the opening balance of capital and reserves, and 50% of tax filing purposes.
the income for the year or accumulated profits from the previous
year. For accounting purposes, this distribution of interest on Tax credits
capital is regarded as a dividend distribution, while for Brazilian The tax credits are mainly attributable to the Company’s
tax purposes it is regarded as tax deductible interest. operating subsidiaries in Brazil. They relate to credits claimed
on foreign investments, credits for research and development
Non-deductible loss on disposal of Kazakhstan operations: the and other credits.
Company recorded 0.9 billion impairment charges and 1.5 billion
foreign exchange translation losses in connection with the Other taxes
divestment of its operations in Kazakhstan. Both items are non- Other taxes mainly include withholding taxes on dividends,
deductible for tax purposes, see note 2.3. services, royalties and interests as well as mining duties in
Canada and Mexico, state tax , Corporate Alternative Minimum
Rate changes Tax ("CAMT") and Base Erosion and Anti-Abuse Tax ("BEAT") in
The 2021 tax expense from rate changes of 12 is mainly due to the United States, and Cotisation sur la Valeur Ajoutée des
the impact of the change of the tax rate on deferred taxes in Entreprises ("CVAE'') in France.
Argentina.
Others Year ended December 31,
Net change in measurement of deferred tax assets
2023 2022 2021
The 2023 net change in measurement of deferred tax assets of
Tax contingencies/settlements 43 (3) 137
(423) mainly consists of (i) recognition of deferred tax assets in
Luxembourg of (314) including recognition of tax losses carried Prior period taxes (4) 14 (31)
forward based on revised taxable income forecast of (366), and Others (9) 7 (12)
(ii) net recognition of (109) of deferred tax assets in other tax Total 30 18 94
jurisdictions, including (292) recognition related to higher future
profits expectation. Tax contingencies/settlements of 43, (3), and 137 at
December 31, 2023, 2022 and 2021, respectively, consist of
The 2022 net change in measurement of deferred tax assets of uncertain tax positions (see note 10.3) mainly related to North
(1,154) mainly consists of recognition of deferred tax assets in America and ACIS.
Luxembourg of (1,227) including mainly (676) effect of the
utilization of unrecognized tax losses carried forward following
higher profitability of the current year (net of write-downs of
shares), (579) recognition of tax losses carried forward based
on revised taxable income forecast, derecognition of deferred
tax assets on losses and deductible temporary differences in
Ukraine of 178, and (105) utilization of deferred tax assets in
other tax jurisdictions, following profits generated during the
year.

The 2021 net change in measurement of deferred tax assets of

(2,956) mainly consists of recognition of deferred tax assets in
Luxembourg of (1,166) following higher profitability of the
current year and increase of the available deferred tax liabilities,
recognition of deferred tax assets on current year taxable
reversal of write-downs of the value of shares and receivables of
consolidated subsidiaries in Luxembourg (735), and (1,055) net
recognition and utilization of deferred tax assets on losses and
temporary differences in the United States and other tax
jurisdictions, following significant profits generated during the
year.

353
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

10.2 Income tax recorded directly in equity and/or other

comprehensive income
10.3 Uncertain tax positions
Year ended December 31,
The Company operates in multiple jurisdictions with complex
2023 2022 2021 legal and tax regulatory environments. In certain of these
Recognized in other comprehensive jurisdictions, ArcelorMittal has taken income tax positions that
income on:
management believes are supportable and are intended to
Deferred tax expense (benefit)
withstand challenge by tax authorities. Some of these positions
Unrealized gain on investments in
equity instruments at FVOCI — — 167 are inherently uncertain and include those relating to transfer
Gain (loss) on derivative financial
pricing matters and the interpretation of income tax laws applied
instruments (126) (31) 648 in complex transactions. The Company periodically reassesses
Recognized actuarial gain (loss) (18) 193 144 its tax positions. Changes to the financial statement recognition,
Foreign currency translation measurement and disclosure of tax positions are based on
adjustments 110 143 59 management’s best judgment given any changes in the facts,
(34) 305 1,018 circumstances, information available and applicable tax
Recognized directly in equity on: laws. Considering all available information and the history of
Current tax expense (benefit) resolving income tax uncertainties, the Company believes that
Realized gain on investments in equity
the ultimate resolution of such matters will not have a material
instruments at FVOCI — — — effect on the Company’s financial position, statements of
Deferred tax expense (benefit) operations or cash flows beyond the income tax contingencies
Loss related to repurchase of MCNs (231) — (185)
recorded as of the reporting date. (see notes 9.2 and 9.3).
Realized gain on investments in equity
instruments at FVOCI — — —
(231) — (185)
Total (265) 305 833

10.4 Deferred tax assets and liabilities

The origin of the deferred tax assets and liabilities is as follows:

Assets Liabilities Net

2023 2022 2023 2022 2023 2022
Intangible assets 19 21 (618) (553) (599) (532)
Property, plant and equipment 412 172 (3,666) (3,757) (3,254) (3,585)
Inventories 193 214 (73) (116) 120 98
Financial instruments 16 47 (139) (16) (123) 31
Other assets 201 161 (499) (538) (298) (377)
Provisions 815 819 (472) (389) 343 430
Other liabilities 464 474 (126) (119) 338 355
Tax losses and other tax benefits carried forward 10,302 9,340 — — 10,302 9,340
Tax credits carried forward 208 128 — — 208 128
Deferred tax assets (liabilities) 12,630 11,376 (5,593) (5,488) 7,037 5,888
Deferred tax assets 9,469 8,554
Deferred tax liabilities (2,432) (2,666)

354
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Deferred tax assets recognized by the Company as of December 31, 2023 included the following:

Recognized Unrecognized
Total deferred deferred tax deferred tax
Gross amount tax assets assets assets
Tax losses and other tax benefits carried forward 139,108 34,360 10,302 24,058
Tax credits carried forward 690 690 208 482
Other temporary differences 13,140 3,108 2,120 988
Total 38,158 12,630 25,528

Deferred tax assets recognized by the Company as of December 31, 2022 included the following:

Recognized Unrecognized
Total deferred deferred tax deferred tax
Gross amount tax assets assets assets
Tax losses and other tax benefits carried forward 126,685 31,587 9,340 22,247
Tax credits carried forward 600 600 128 472
Other temporary differences 10,543 2,663 1,908 755
Total 34,850 11,376 23,474

legislation, tax losses generated before 2017 can be carried

As of December 31, 2023, the majority of unrecognized deferred forward indefinitely and are not subject to any specific yearly
tax assets relates to tax losses carried forward attributable to loss utilization limitations. The tax losses carried forward relate
various subsidiaries located in different jurisdictions (primarily primarily to tax deductible write-down charges taken on
Brazil, France, Luxembourg, Spain and USA) with different investments in shares of consolidated subsidiaries recorded by
statutory tax rates. At each reporting date, ArcelorMittal certain of ArcelorMittal’s holding companies in Luxembourg. Of
considers existing evidence, both positive and negative, the total tax losses carried forward, 61 billion may be subject to
including the earnings history and results of recent operations, recapture in the future if the write-downs that caused them are
reversals of deferred tax liabilities, projected future taxable reversed creating taxable income unless the Company
income, and planning strategies, that could impact the view with crystallizes them through sales or other organizational
regard to future realization of these deferred tax assets. restructuring activities.

The amount of the total deferred tax assets is the aggregate The Company believes that it is probable that sufficient future
amount of the various recognized and unrecognized deferred taxable profits will be generated to support the recognized
tax assets at the various subsidiaries and not the result of a deferred tax asset for tax losses carried forward in Luxembourg.
computation with a given blended rate. The utilization of tax As part of its recoverability assessment the Company has taken
losses carried forward is restricted to the taxable income of the into account (i) its most recent forecast approved by
subsidiary or tax consolidation group to which it belongs. The management and the Board of Directors, (ii) the likelihood that
utilization of tax losses carried forward may also be restricted by the factors that have contributed to past losses in Luxembourg
the character of the income, expiration dates and limitations on will not recur, (iii) the fact that ArcelorMittal in Luxembourg is the
the yearly use of tax losses against taxable income. main provider of funding to the Company’s consolidated
subsidiaries, leading to significant amounts of taxable interest
At December 31, 2023, the total amount of accumulated tax income on outstanding and future loans as updated based on
losses in Luxembourg with respect to the ArcelorMittal S.A. tax most recent funding strategy, (iv) the expected level of interest
integration amounted to 120.6 billion, of which 35.3 billion is expenses in Luxembourg driven by the Group net debt level, (v)
considered realizable, resulting in the recognition of 8.8 billion of the industrial franchise agreement whereby ArcelorMittal S.A.
deferred tax assets at the applicable income tax rate in licenses its business model for manufacturing, processing and
Luxembourg. At December 31, 2022, the total amount of distributing steel to group subsidiaries, and (vi) other significant
accumulated tax losses in Luxembourg with respect to the main and reliable sources of operational income earned from
tax consolidation amounted to approximately 110.7 billion, of ArcelorMittal’s European and worldwide operating subsidiaries
which 34 billion was considered realizable, resulting in the for centralized distribution and procurement activities performed
recognition of 8.5 billion of deferred tax assets at the applicable in Luxembourg. The Company has also considered the
income tax rate in Luxembourg. Under the Luxembourg tax implications of the net-zero path and its carbon emissions
355
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

intensity reduction targets on its future taxable profits

Year expiring Recognized Unrecognized Total
expectations in relation to the existing business models and the
2024 25 43 68
potential future financing of such projects, resulting in no major
2025 10 63 73
impact on the estimated level of future taxable profit. In
performing the assessment, the Company estimates at which 2026 1 30 31
point in time its earnings projections are no longer reliable, and 2027 4 3 7
thus taxable profits are no longer probable. Accordingly, the 2028 272 34 306
Company has established consistent forecast periods for its 2029 - 2044 1,066 13,619 14,685
different income streams for estimating probable future taxable Total 1,378 13,792 15,170
profits, against which the unused tax losses can be utilized in
Luxembourg. The remaining tax losses carried forward and other tax benefits
for an amount of 123.9 billion (of which 40.3 billion are
At December 31, 2023, based upon the level of historical
recognized and 83.6 billion are unrecognized) are carried
taxable income and projections for future taxable income over
forward for unlimited period of time and primarily relate to the
the periods in which the deductible temporary differences are
Company’s operations in Brazil, France, Luxembourg, Spain
anticipated to reverse, management believes it is probable that
and in the United States.
ArcelorMittal will realize the benefits of the recognized deferred
tax assets of 9.5 billion. The amount of future taxable income At December 31, 2023, the Company also had total estimated
required to be generated by ArcelorMittal’s subsidiaries to utilize tax credits carried forward of 690.
the deferred tax assets of 9.5 billion is at least 41.5 billion.
Historically, the Company has been able to generate sufficient Such amount includes tax credits of 499 (of which 129
taxable income and believes that it will generate sufficient levels recognized and 370 unrecognized) and primarily attributable to
of taxable income in the coming years to allow the Company to subsidiaries in the Basque country in Spain which expire as
utilize tax benefits associated with tax losses carried forward follows:
and other deferred tax assets that have been recognized in its
consolidated financial statements. Where the Company has had Year expiring Recognized Unrecognized Total
a history of recent losses, it relied on convincing other evidence 2024 — 1 1
such as the character of (historical) losses and planning
2025 — 1 1
opportunities to support the deferred tax assets recognized.
2026 — 1 1
As of December 31, 2023, ArcelorMittal recorded 168 of 2027 — 1 1
deferred income tax liabilities in respect of deferred taxation that 2028 — 1 1
would arise if temporary differences on investments in 2028 - 2043 129 365 494
subsidiaries, associates and interests in joint ventures were to Total 129 370 499
be realized in the foreseeable future as compared to 146 as of
December 31, 2022. No deferred tax liability has been The remaining tax credits for an amount of 191 of which 79 are
recognized in respect of other temporary differences on recognized and 112 are unrecognized) are indefinite and
investments in subsidiaries, associates and interests in joint primarily attributable to the Company’s operations in Brazil,
ventures because the Company is able to control the timing of Spain and the United States.
the reversal of the temporary difference and it is probable that
such differences will not reverse in the foreseeable future. The Tax losses, tax credits and other tax benefits carried forward are
amount of these unrecognized deferred tax liabilities is 870 at denominated in the currency of the countries in which the
December 31, 2023 (795 at December 31, 2022). respective subsidiaries are located and operate, except for
Luxembourg where the tax losses are mainly denominated in
10.5 Tax losses, tax credits and other tax benefits carried U.S. dollar. Fluctuations in currency exchange rates could
forward impact the U.S. dollar equivalent value of these tax losses
carried forward in future years.
At December 31, 2023, the Company had total estimated tax
losses carried forward and other tax benefits of 139.1 billion.

This includes net operating losses and other tax benefits of 15.2
billion primarily related to subsidiaries in the Basque Country in
Spain, Luxembourg and the United States, which expire as
follows:

356
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

NOTE 11: EQUITY 50 million treasury shares, respectively. Accordingly, the

aggregate number of shares issued and fully paid up decreased
11.1 Share details from 1,102,809,772 to 982,809,772 and share capital decreased
On May 14, 2020, the Company completed an offering of by 43 from 393 at December 31, 2020 to 350 at December 31,
common shares, without nominal value for 750 at a price of 2021.
$9.27 per share. The Significant Shareholder participated in the
offerings by contributing an amount of 100 for the shares. On January 14, 2022 and May 18, 2022, ArcelorMittal cancelled
45 million and 60 million treasury shares, respectively, to keep
Following the offering of common shares described above with the number of treasury shares within appropriate levels. These
net proceeds of 740 (net of transaction costs of 10), on May 14, cancellations took into account the shares already purchased
2020, the Company issued 80,906,149 fully paid up shares. The under the 1,000 share buyback programs announced on
Company allocated 29 to share capital, which increased from November 17, 2021, which were completed on December 28,
364 at December 31, 2019 to 393 at December 31, 2020 and 2021 and on May 5, 2022, respectively. Following these
the remainder of 711 to additional paid-in-capital. cancellations, the aggregate number of shares issued and fully
paid up and share capital decreased from 982,809,772 and 350
Under the terms of the offerings, there was a 180-day lock-up as of December 31, 2021 to 877,809,772 and 312 as of
period for the Company on issuances or sales of shares and December 31, 2022, respectively.
securities exchangeable for or convertible into shares, subject to
customary exceptions. On April 28, 2023, ArcelorMittal cancelled 25 million treasury
shares to keep the number of treasury shares within appropriate
Share capital levels. This cancellation took into account the shares already
Following the approval by the extraordinary general meeting of purchased under the 60,431,380 share buyback program (see
shareholders on June 8, 2021 to cancel all the shares below). Following this cancellation, the aggregate number of
repurchased by the Company under its share buyback programs shares issued and fully paid up and share capital decreased
up to a maximum of 165 million shares, the Company from 877,809,772 and 312 as of December 31, 2022 to
decreased issued share capital on August 4, 2021 and 852,809,772 and 303 as of December 31, 2023, respectively.
September 22, 2021 through the cancellation of 70 million and

The Company’s shares consist of the following:

December 31, 2021 Movement in year December 31, 2022 Movement in year December 31, 2023
Issued shares 982,809,772 (105,000,000) 877,809,772 (25,000,000) 852,809,772
Treasury shares (71,916,570) (555,273) (72,471,843) 38,933,827 (33,538,016)
Total outstanding shares 910,893,202 (105,555,273) 805,337,929 13,933,827 819,271,756

The number of issued shares was 982,809,772 at December 31,

2021, 877,809,772 at December 31, 2022 and 852,809,772 at Following the cancellation of treasury shares on April 28, 2023,
December 31, 2023. authorized share capital decreased from 404 represented by
1,136,418,599 ordinary shares without nominal value as of
Authorized shares December 31, 2022 to 395 represented by 1,111,418,599
On August 4, 2021, following the cancellation of 70 million ordinary shares without nominal value as of December 31,
treasury shares, the authorized share capital decreased from 2023.
485 represented by 1,361,418,599 ordinary shares without
nominal value to 460 represented by 1,291,418,599 ordinary Share buyback
shares without nominal value. On September 22, 2021, On March 3, 2021, ArcelorMittal completed its first share
following the cancellation of 50 million treasury shares, the buyback program in 2021 and repurchased 27.1 million shares
authorized share capital decreased further to 442 represented for a total amount of €537 million (650) at an average price per
by 1,241,418,599 ordinary shares without nominal value. share of €19.79 ($23.97).

Following the cancellations of treasury shares on January 14, On June 17, 2021, ArcelorMittal completed a second share
2022 and May 18, 2022, authorized share capital decreased buyback program and repurchased 17.8 million shares for a
from 442 represented by 1,241,418,599 ordinary shares without total amount of €469 million (570) at an average price per share
nominal value as of December 31, 2021 to 404 represented by of €26.27 ($31.94).
1,136,418,599 ordinary shares without nominal value as of
December 31, 2022.
357
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

On July 5, 2021, ArcelorMittal completed a third share buyback operating activities less purchases of property, plant and
program and repurchased 24.5 million shares for a total amount equipment and intangibles less dividends paid to non-controlling
of €630 million (750) at an average price per share of €25.77 shareholders) generated over the period (the Company’s
($30.66). defined policy is to return a minimum of 50% of post-dividend
annual FCF), the continued authorization by shareholders, and
On November 16, 2021, ArcelorMittal completed a fourth share market conditions. At market closure on December 31, 2023,
buyback program and repurchased 67.4 million shares for a ArcelorMittal had repurchased 26.2 million shares for a total
total value of €1,881 million (2,200) at an average price per value of €601 million (652) at an average price per share of
share of €27.91 ($32.64). €22.88 ($24.85).

On December 28, 2021, the Company completed a fifth share The shares acquired under the different programs are intended
buyback program and repurchased 34.1 million shares for a to meet ArcelorMittal’s obligations under debt obligations
total value of €886 million (1,000) at an average price per share exchangeable into equity securities; to reduce ArcelorMittal’s
of €25.99 ($29.34). share capital, and/or to meet ArcelorMittal’s obligations arising
from employee share programs.
During 2021, the Company repurchased 62.2 million shares
from the Significant Shareholder under its five share buyback Treasury shares
programs to maintain Significant Shareholder's current level of ArcelorMittal held, indirectly and directly, 33.5 million and 72.5
voting rights (pursuant to the Share Repurchase Agreement million treasury shares as of December 31, 2023 and
signed on February 12, 2021) for €1,600 million (1,878). December 31, 2022, respectively.

On April 25, 2022, ArcelorMittal completed its 1,000 share 11.2 Equity instruments and hybrid instruments
buyback program announced on February 11, 2022 under the
authorization given by the annual general meeting of Mandatory convertible bonds
shareholders of June 8, 2021 and repurchased 31.8 million On December 28, 2009, the Company issued through Hera
shares for a total value of €911 million (equivalent to 1,000) at Ermac, a wholly-owned subsidiary, 750 unsecured and
an approximate average price per share of €28.68 ($31.49). unsubordinated bonds mandatorily convertible into preferred
shares of such subsidiary. The bonds were placed privately with
On June 8, 2022, ArcelorMittal completed a second share a Luxembourg affiliate of Crédit Agricole (formerly Calyon) and
buyback program in the amount of 1,000 under the authorization are not listed. The Company has the option to call the
given by the annual general meeting of shareholders of May 4, mandatory convertible bonds until 10 business days before the
2022, bringing the total 2022 buybacks announced so far to maturity date. Hera Ermac invested the proceeds of the bonds
2,000. ArcelorMittal repurchased 33.3 million shares for a total issuance and an equity contribution by the Company in notes
value of €943 million (equivalent to 1,000) at an approximate issued by subsidiaries of the Company linked to the values of
average price per share of €28.26 ($29.99). shares of Erdemir and China Oriental. On April 20, 2011, the
Company signed an agreement for an extension of the
On July 29, 2022, the Company announced a third share
conversion date of the mandatory convertible bonds to January
buyback program of 60.4 million shares (approximately 1.4
31, 2013. On September 27, 2011, the Company increased the
billion based on share price as of July 26, 2022) to be
mandatory convertible bonds from 750 to 1,000. The Company
completed by the end of May 2023 (subject to market
has extended the conversion date for the mandatory convertible
conditions) under the authorization given by the annual general
bonds from time to time.
meeting of shareholders of May 4, 2022. The Significant
Shareholder has decided not to participate in the program On March 29, 2019 and December 18, 2019, the Company
consistent with the position announced on February 25, 2022. repaid notes issued by subsidiaries which were linked to the
On March 31, 2023, ArcelorMittal completed the share buyback value of the shares of Erdemir. As of December 31, 2020, the
program. The total repurchase value was €1,456 million (1,492) remaining notes were linked to the value of the shares of China
at an approximate average price per share of €24.10 ($24.68). Oriental (see note 6.1.5).

On May 5, 2023, ArcelorMittal announced the commencement On December 22, 2020, the maturity of the mandatory
of a new buyback program of up to 85 million shares under the convertible bonds was extended from January 29, 2021 to
authorization given by the annual general meeting of January 31, 2024. The other main features of the mandatory
shareholders of May 2, 2023, to be completed by May 2025. convertible bonds remained unchanged.
The actual amount of shares that will be repurchased pursuant
to this new program will depend on the level of post-dividend On March 14, 2023, the Company, through its wholly-owned
free cash flow ("FCF") (calculated as net cash provided by subsidiary Hera Ermac, early repaid 226,666 out of the 666,666
358
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

outstanding unsecured and unsubordinated bonds mandatorily The Company determined that the MCNs were a hybrid
convertible into preferred shares of such subsidiary ("MCBs") for instrument including an equity component and a debt
a total cash consideration of 340. The bonds were placed component.
privately with a Luxembourg affiliate of Crédit Agricole. The
Company determined that the MCBs are a hybrid instrument On December 23, 2021, ArcelorMittal completed separate,
including an equity component recognized as non-controlling privately negotiated agreements with a limited number of
interests and a liability component. Following the early partial holders of MCNs to repurchase 395 in aggregate principal
repayment, the Company allocated the cash consideration to amount of MCNs at the minimum conversion ratio for an
the liability component (25) and equity component (315) of the aggregate cash consideration of 1,196. The Company allocated
instrument, which resulted in 291 decrease in non-controlling the cash consideration to the debt (30) and equity (331)
interests and 24 decrease in retained earnings consistent with components of the instrument and recognized in financing costs
the original allocation using the net present value of the future - net a 61 loss relating to the liability component and a 774 (589
interest payments at the date of early redemption. net of tax) decrease in retained earnings relating to the equity
component consistent with the original allocation using net
On December 21, 2023, the Company signed an agreement for present value of the future interest payments at the date of
an extension of the conversion date of the mandatory exchange.
convertible bonds to January 30, 2026. The other main features
of the mandatory convertible bonds remained unchanged. The On May 19, 2023, upon mandatory conversion of the
Company determined that this transaction led to the 24,290,025 outstanding mandatorily convertible subordinated
extinguishment of the existing compound instrument and the notes ("MCNs") due May 18, 2023, ArcelorMittal delivered a
recognition of a new compound instrument including non- total of 57,057,991 treasury shares (of which 9,396,120 to the
controlling interests for 547 and other liabilities for 113. The Significant Shareholder) with a carrying amount of 1,534. The
derecognition of the previous instrument and the recognition at Company determined that the MCNs are a hybrid instrument
fair value of the new instrument resulted in 66 expense included including an equity component and a debt component. Following
in financing costs-net in the consolidated statement of the mandatory conversion, it derecognized the 509 equity
operations and 32 decrease in non-controlling interests. component presented separately in the statements of changes
in equity and recognized a 1,025 (794 net of tax) decrease in
Mandatorily convertible subordinated notes additional paid-in capital.
On May 18, 2020, the Company completed an offering of
mandatorily convertible subordinated notes (“MCNs”) for 1,250. 11.3 Earnings per common share
The MCNs had a three-year maturity, were issued at 100% of Basic earnings per common share is computed by dividing net
the principal amount and were mandatorily converted into income by the weighted average number of common shares
common shares of the Company upon maturity unless outstanding during the year. Diluted earnings per share is
converted earlier at the option of the holders or ArcelorMittal computed by dividing income available to equity holders by the
during the conversion period or upon occurrence of certain weighted average number of common shares plus potential
defined events. common shares from share unit plans whenever the conversion
results in a dilutive effect.
The Significant Shareholder participated in the offerings by
contributing an amount of 100 for the MCNs.

The following table provides the numerators and a reconciliation of the denominators used in calculating basic and diluted earnings per
common share for the years ended December 31, 2023, 2022 and 2021.

Year ended December 31,

2023 2022 2021
Net income attributable to equity holders of the parent 919 9,302 14,956
Weighted average common shares outstanding (in millions) for the purposes of basic earnings per share 842 911 1,105
Incremental shares from assumed conversion of restricted share units and performance share units (in
millions) 3 3 3
Weighted average common shares outstanding (in millions) for the purposes of diluted earnings per share 845 914 1,108

11.4 Dividends S.A.”) which are prepared in accordance with IFRS, as

Calculations to determine the amounts available for dividends endorsed by the European Union. ArcelorMittal S.A. has no
are based on ArcelorMittal’s financial statements (“ArcelorMittal significant manufacturing operations of its own and generates its
359
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

profit mostly from financing activities and the management fees/ subsidiaries’ recognized gains, profit generated by its own
industrial franchise agreements with Group companies. activities, from the sale of its assets or share premiums from the
Accordingly, it can only pay dividends or distributions to the issuance of common shares. Dividends are declared in U.S.
extent it is entitled to receive cash dividend distributions from its dollar and are payable in either U.S. dollar or in euros.

Dividend per Total (in

Description Approved by share (in $) Payout date millions of $)
Dividend for financial year 2020 Annual general shareholders’ meeting on June 8, 2021 0.30 June 15, 2021 312
Dividend for financial year 2021 Annual general shareholders’ meeting on May 4, 2022 0.38 June 10, 2022 332
June 15, 2023 and
Dividend for financial year 2022 Annual general shareholders’ meeting on May 2, 2023 0.44 December 7, 2023 369

On May 2, 2023 at the annual general meeting of shareholders,

the shareholders approved the Company’s dividend of $0.44 per
share. The dividend amounted to 369 and payment includes two
installments; the first installment of 185 was paid on June 15,
2023 and the second one of 184 was settled on December 7,
2023.

In February 2024, the Board of Directors recommended the

base annual dividend of $0.50 per share, to be paid in two equal
installments in June and December 2024, subject to the
approval of shareholders at the annual general meeting of
shareholders in April 2024.

11.5 Non-controlling interests

11.5.1 Non-wholly owned subsidiaries that have material non-controlling interests

The tables below provide a list of the subsidiaries which include significant non-controlling interests at December 31, 2023 and 2022
and for the years ended December 31, 2023, 2022 and 2021.

360
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Net income Net income Net income

% of non- % of non- (loss) (loss) (loss)
controlling controlling attributable attributable attributable
interests interests to non- to non- to non-
and non- and non- controlling controlling controlling
controlling controlling interests for Non- interests for Non- interests for
voting voting the year controlling the year controlling the year
Country of rights at rights at ended interests at ended interests at ended
incorporation December December December December December December December
Name of Subsidiary and operation 31, 2023 31, 2022 31, 2023 31, 2023 31, 2022 31, 2022 31, 2021
AMSA South Africa 30.78 % 30.78 % (67) 115 55 198 151
Société Nationale de Sidérurgie Morocco
S.A. ("Sonasid")1 67.57 % 67.57 % 3 115 5 103 9
AMKR Ukraine 4.87 % 4.87 % (15) 55 (68) 74 45
Belgo Bekaert Arames ("BBA") Brazil 45.00 % 45.00 % 55 225 60 215 127
Hera Ermac2 Luxembourg — — 532 — 855 —
AMMC Canada 15.00 % 15.00 % 149 561 183 492 257
Arceo Belgium 62.86 % 62.86 % 3 150 1 144 2
ArcelorMittal Liberia Ltd3 Liberia 15.00 % 15.00 % (11) (169) — (173) 4
4
ArcelorMittal Texas HBI USA 20.00 % 20.00 % (8) 216 (9) 225 —
Other (6) 307 9 305 14
Total 103 2,107 236 2,438 609

1. Sonasid - ArcelorMittal holds a controlling stake of 50% in Nouvelles Sidérurgies Industrielles ("NSI"). ArcelorMittal controls NSI on the basis of a shareholders’ agreement
which includes deadlock arrangements in favor of the Company. NSI holds a 64.86% stake in Sonasid. The total non-controlling interests in Sonasid of 67.57% are the
result of ArcelorMittal’s indirect ownership percentage in Sonasid of 32.43% through its controlling stake in NSI.
2. Hera Ermac - The non-controlling interests correspond to the equity component net of transaction fees of the mandatory convertible bonds maturing on January 30, 2026
(see note 11.2).
3. ArcelorMittal Liberia Ltd is incorporated in Cyprus. On December 21, 2023 and December 20, 2022, ArcelorMittal fully settled 100 and 300 capital increases, respectively,
in ArcelorMittal Liberia Ltd including 15 and 45, respectively, on behalf of non-controlling interests.
4. On June 30, 2022, ArcelorMittal acquired a 80% controlling stake in ArcelorMittal Texas HBI (see note 2.2.4).

The tables below provide summarized statements of financial position for the above-mentioned subsidiaries as of December 31, 2023
and 2022 and summarized statements of operations and summarized statements of cash flows for the years ended December 31,
2023, 2022 and 2021.

December 31, 2023

Summarized statements ArcelorMittal
of financial position AMSA Sonasid AMKR BBA Hera Ermac AMMC Arceo AM Liberia Texas HBI LLC
Current assets 1,058 318 561 293 166 1,860 205 186 361
Non-current assets 464 113 1,230 232 990 3,108 39 919 812
Total assets 1,522 431 1,791 525 1,156 4,968 244 1,105 1,173
Current liabilities 876 251 638 94 58 530 — 546 68
Non-current liabilities 273 17 168 15 200 504 — 1,512 25
Net assets 373 163 985 416 898 3,934 244 (953) 1,080

December 31, 2023

Summarized statements of ArcelorMittal
operations AMSA Sonasid AMKR BBA Hera Ermac AMMC Arceo AM Liberia Texas HBI LLC
Revenue 2,256 471 1,144 915 — 3,216 — 248 732
Net (loss) income (217) 4 (328) 128 (51) 943 5 (85) (40)
Total comprehensive
income (loss) (216) 13 (336) 127 (51) 935 5 (85) (43)

361
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

December 31, 2023

Summarized statements of cash Hera AM ArcelorMittal
flows AMSA Sonasid AMKR BBA Ermac AMMC Arceo Liberia Texas HBI LLC
Net cash provided by / (used in)
operating activities 52 16 49 209 33 997 10 90 125
Net cash provided by / (used in)
investing activities (93) (20) (112) (66) 509 (553) (7) (314) (122)
Net cash provided by / (used in)
financing activities 27 (13) 52 (148) (535) (538) (3) 225 (6)
Impact of currency movements on
cash (9) 5 (1) 1 — — 2 — —
Cash and cash equivalents:
At the beginning of the year / at
acquisition date 157 89 26 18 — 206 93 4 4
At the end of the year 134 77 14 14 7 112 95 5 1
Dividend to non-controlling interests — (4) — (62) — (79) (2) — (1)

December 31, 2022

Summarized statements of Hera AM ArcelorMittal
financial position AMSA Sonasid AMKR BBA Ermac AMMC Arceo Liberia Texas HBI LLC
Current assets 1,124 280 801 362 704 1,444 191 371 311
Non-current assets 608 98 1,186 160 953 3,029 42 423 963
Total assets 1,732 378 1,987 522 1,657 4,473 233 794 1,274
Current liabilities 762 193 493 107 64 480 — 1,727 113
Non-current liabilities 327 32 165 15 102 460 — 36 31
Net assets 643 153 1,329 400 1,491 3,533 233 (969) 1,130

December 31, 2022

Hera AM ArcelorMittal
AMSA Sonasid AMKR BBA AMMC Arceo
Summarized statements of operations Ermac Liberia Texas HBI LLC
Revenue 2,516 471 1,435 1,032 — 3,467 — 303 462
Net income (loss) 177 9 (1,429) 141 (55) 1,171 2 4 (43)
Total comprehensive income (loss) 178 15 (1,386) 140 (55) 1,273 2 4 (43)

362
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

December 31, 2022

Hera AM ArcelorMittal
AMSA Sonasid AMKR BBA AMMC Arceo
Summarized statements of cash flows Ermac Liberia Texas HBI LLC
Net cash provided by / (used in) operating
activities 22 30 77 202 17 1,159 6 154 125
Net cash provided by / (used in) investing
activities (69) (14) (73) (59) (11) 432 6 (452) (133)
Net cash provided by / (used in) financing
activities 5 (15) (20) (156) (6) (1,601) (3) 300 —
Impact of currency movements on cash (4) (11) (6) — — — (5) — —
Cash and cash equivalents:
At the beginning of the year 203 99 48 31 — 216 89 2 12
At the end of the year 157 89 26 18 — 206 93 4 4
Dividend to non-controlling interests — (10) — (71) — (237) (2) — —

December 31, 2021

Hera
Summarized statements of operations AMSA Sonasid AMKR BBA Ermac AMMC Arceo AM Liberia
Revenue 2,695 480 4,015 1,021 — 3,997 — 372
Net income (loss) 489 15 920 272 (4) 1,713 3 63
Total comprehensive income (loss) 491 17 918 273 (4) 1,796 3 63

December 31, 2021

Hera AM
AMSA Sonasid AMKR BBA AMMC Arceo
Summarized statements of cash flows Ermac Liberia
Net cash provided by / (used in) operating
activities 180 23 778 90 5 2,310 8 214
Net cash provided by / (used in) investing
activities (85) (6) (313) (5) 8 (844) 19 (78)
Net cash provided by / (used in) financing
activities (49) (4) (449) (72) (13) (1,375) (5) (135)
Impact of currency movements on cash (16) (6) 1 (2) — — (6) —
Cash and cash equivalents:
At the beginning of the year 173 92 31 20 — 125 73 1
At the end of the year 203 99 48 31 — 216 89 2
Dividend to non-controlling interests — (2) (17) (22) — (202) (3) —

11.5.2 Transactions with non-controlling interests

Acquisitions of non-controlling interests, which do not result in a Put option liabilities
change of control, are accounted for as transactions with
On March 30, 2022 Votorantim S.A. exercised the put option
owners in their capacity as owners and therefore no goodwill is
right it has under its shareholders’ agreement with the Company
recognized as a result of such transactions. In such
with respect to its 2.9% preferred share interest in ArcelorMittal
circumstances, the carrying amounts of the controlling and non-
Brasil following the acquisition of Votorantim S.A.'s long steel
controlling interests are adjusted to reflect the changes in their
business in Brazil in 2018, which was subsequently renamed
relative interests in the subsidiary. Any difference between the
ArcelorMittal Sul Fluminense ("AMSF"). The exercise price of
amount by which the non-controlling interests are adjusted and
the put option is calculated pursuant to an agreed formula in the
the fair value of the consideration paid or received is recognized
shareholders’ agreement which applies a 6 times multiple of
directly in equity and attributed to the owners of the parent.
ArcelorMittal Brasil Longs Business EBITDA in the four
Transactions with non-controlling interests also include the immediately preceding calendar quarters from the date of the
mandatory convertible bonds (see note 11.2). put option exercise (subject to certain adjustments, such as the
exclusion of any unusual, infrequent or abnormal events) less
an assumed net debt of BRL 6.2 billion times 15%. The

363
 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

Company determined that it has a present ownership interest in In conjunction with the acquisition of an 80% interest in
the preferred shares subject to the put option. Accordingly, it ArcelorMittal Texas HBI on June 30, 2022, ArcelorMittal granted
recognized at acquisition date of AMSF a 328 financial liability at to voestalpine a put option exercisable at the end of the fifth,
amortized cost and measured at the present value of the tenth and fifteenth year subsequently to the acquisition date.
redemption amount. As of December 31, 2022, the Company The Company recognized at inception a 177 (158 as of
calculated the put option exercise price in the amount of BRL December 31, 2023) financial liability at amortized cost
1.0 billion (179 see note 4.8). Votorantim S.A. has indicated that measured at the present value of the redemption amount of the
it does not agree with ArcelorMittal Brasil’s calculation of the written put option based on the lower of equity value increased
exercise price and filed a request for arbitration on September by an annual contractual return and fair value (see notes 2.2.4
28, 2022. The definition of the final put option exercise price will and 9.2).
be subject to the arbitration procedure, whose estimated timing
for resolution is currently unknown. In January 2023, NOTE 12: RELATED PARTIES
ArcelorMittal Brasil settled the undisputed amount it accepts as The related parties of the Group are predominately subsidiaries,
the value of the put option for 179 (see note 9.3). joint operations, joint ventures, associates and key management
personnel (see note 8.1) of the Group. Transactions between
On June 3, 2021, following an amendment to the shareholders'
the parent company, its subsidiaries and joint operations are
agreement signed between the Company and non-controlling
eliminated on consolidation and are not disclosed in this note.
interests in NSI, an entity in which ArcelorMittal holds a 50%
Related parties include the Significant Shareholder, which is a
controlling stake and which holds a 64.86% interest in Sonasid
trust of which Mr. Lakshmi N. Mittal, Mrs. Usha Mittal and their
in Morocco, the Company granted to such non-controlling
children are the beneficiaries and which owns, together with
interests a put option to buy the totality of their shares in NSI
shares owned directly by Mr. and Mrs. Mittal, 39.87% of
exercisable by its holders during three periods between
ArcelorMittal’s issued ordinary shares.
December 5, 2022 to December 4, 2024, December 5, 2027 to
December 4, 2029 and December 5, 2032 to December 4, Transactions with related parties of the Company mainly relate
2034. The carrying amount of the financial liability at amortized to sales and purchases of raw materials and steel products and
cost was 116 and 122 as of December 31, 2023 and 2022, were as follows:
respectively, and is measured at the present value of the
redemption amount (see note 9.2).

12.1 Sales and trade receivables

Year ended December 31, December 31,
Sales Trade receivables
Related parties and their subsidiaries where applicable Category 2023 2022 2021 2023 2022
Calvert Joint Venture 3,405 3,521 3,549 17 38
1
Gonvarri Steel Industries Associate 2,474 2,526 2,234 98 118
Aperam Other 445 536 478 44 69
Borçelik Joint Venture 371 427 484 33 6
Bamesa Associate 345 311 370 33 20
Tuper Joint Venture 238 336 326 39 43
ArcelorMittal CLN Distribuzione Italia Joint Venture 214 333 499 1 2
Tameh Joint Venture 214 292 107 16 29
Coils Lamiere Nastri (C.L.N.) Associate 185 195 150 21 3
WDI 2 Associate 183 195 195 1 1
AMNS India Joint Venture 101 69 59 1 31
ArcelorMittal RZK Çelik Servis Merkezi Joint Venture 88 177 154 2 6
3
Other 562 826 1,914 66 311
Total 8,825 9,744 10,519 372 677

1. Gonvarri Steel Industries include mainly the joint ventures ArcelorMittal Gonvarri Brasil Productos Siderúrgicos and ArcelorMittal Gonvarri SSC Slovakia.
2. WDI includes Westfälische Drahtindustrie Verwaltungsgesellschaft mbH & Co. KG and Westfälische Drahtindustrie GmbH.

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 Consolidated financial statements

(millions of U.S. dollar, except share and per share data)

3. Other includes Acciaierie d'Italia. On April 14, 2021, ArcelorMittal completed an investment agreement with Invitalia, an Italian state-owned company, forming the joint
venture Acciaierie d’Italia (see note 2.3). On September 30, 2021, the raw material supply agreement between Acciaierie d’Italia and the Company expired without
renewal.

12.2 Purchases and trade payables

Year ended December 31, December 31,
Purchases Trade payables
Related parties and their subsidiaries where applicable Category 2023 2022 2021 2023 2022
Tameh Joint Venture 669 830 404 111 147
Global Chartering Joint Venture 296 413 286 13 13
Integrated Metal Recycling Joint Venture 125 99 167 1 3
AMNS India Joint Venture 96 105 166 20 8
Aperam Other 92 126 86 10 12
Exeltium Associate 85 85 71 16 14
Alkat Associate 75 90 68 12 9
Baycoat Joint Venture 62 60 53 8 6
Enerfos Joint Venture 60 44 46 21 9
Sitrel Joint Venture 60 110 88 3 —
CFL Cargo Associate 59 52 71 4 14
Other 370 286 367 141 131
Total 2,049 2,300 1,873 360 366

12.3 Other transactions with related parties

Audit-Related Fees. Audit-related fees in 2023 and 2022 were
As of December 3, 2014, ArcelorMittal Calvert LLC signed a 2.5 and 0.9, respectively. Audit-related fees include fees for
member capital expenditure loan agreement with the joint agreed upon procedures for various transactions or reports.
venture Calvert and as of December 31, 2023 and 2022, the
loans amounted to 230 and 212, respectively, including accrued Tax Fees. Fees relating to tax planning, advice and compliance
interest. The loans bear interest from 2.27% to 6.93% and have in 2023 and 2022 were 1.2 and 0.3, respectively.
various maturity dates ranging from less than 1 to 25 years.
All Other Fees. Fees in 2023 and 2022 for all other services
On November 8, 2019, Baffinland entered into an agreement were 0.1 and 0.3, respectively. All other fees relate to services
with a bank to finance up to 6 million tonnes at 78% of the value not included in the first three categories.
of the iron ore produced and hauled to the port of Milne Inlet by
Baffinland up to a limit of 450. This arrangement was renewed
several times since then, most recently on November 23, 2023.
That renewal provides for the bank to finance 87% of the value
of the iron ore produced and hauled to the port of Milne Inlet by
Baffinland up to a limit of 600.

NOTE 13: PRINCIPAL ACCOUNTANT FEES AND SERVICES

Ernst & Young S.A. acted as the principal independent

registered public accounting firm for ArcelorMittal for the fiscal
years ended December 31, 2023 and for the fiscal year ended
December 31, 2022. Set forth below is a breakdown of fees for
services rendered by the auditor in 2023 and 2022.

Audit Fees. Audit fees for the audits of financial statements in

2023 and 2022 were 24.2 and 21.1, respectively, and for
regulatory filings 0.1 and 0.1 in 2023 and 2022, respectively.

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 REPORT OF THE REVISEUR D’ENTREPRISES AGREE

To the Shareholders of
ArcelorMittal Société Anonyme
24-26, Boulevard d’Avranches
L-1160 Luxembourg
Grand Duchy of Luxembourg

Report on the audit of the consolidated financial statements

Opinion

We have audited the consolidated financial statements of ArcelorMittal and its subsidiaries (the “Group”), which comprise
the consolidated statement of financial position as at December 31, 2023 and the consolidated statement of operations,
the consolidated statement of other comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year ended December 31, 2023, and notes to the consolidated financial statements,
including material accounting policy information.

In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial
position of the Group as at December 31, 2023, and of its consolidated financial performance and its consolidated cash
flows for the year then ended in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the
European Union.

Basis for Opinion

We conducted our audit in accordance with the EU Regulation N° 537/2014, the Law of 23 July 2016 on the audit
profession (Law of 23 July 2016) and with International Standards on Auditing (“ISAs”) as adopted for Luxembourg by the
“Commission de Surveillance du Secteur Financier” (“CSSF”). Our responsibilities under the EU Regulation No 537/2014,
the Law of 23 July 2016 and ISAs as adopted for Luxembourg by the CSSF are further described in the “Responsibilities
of the “réviseur d’entreprises agréé” for the Audit of the Consolidated Financial Statements” section of our report. We are
also independent of the Group in accordance with the International Code of Ethics for Professional Accountants, including
International Independence Standards, issued by the International Ethics Standards Board for Accountants (“IESBA
Code”) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the
consolidated financial statements, and have fulfilled our other ethical responsibilities under those ethical requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of the audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.

366
 Impairment of Goodwill, Intangible Assets and Property, Plant and Equipment
Description of the The goodwill, property, plant and equipment (“PP&E”) and intangible assets balances of the
Matter Group as of December 31, 2023, were $3,908 million, $33,656 million and $1,194 million,
respectively.

As explained in Note 5.3 to the consolidated financial statements, the Group recorded an
impairment of goodwill of $194 million and of PP&E of $732 million, respectively, in relation to
the ArcelorMittal Temirtau cash-generating unit (“CGU”), representing the Group’s operations in
Kazakhstan, which was subsequently sold on December 7, 2023.

In addition, as explained in Note 5.3 to the consolidated financial statements, as a result of the
annual impairment assessment described below, the Group recorded an impairment of $112
million for PP&E, in relation to the Long Products CGU of ArcelorMittal South Africa.

As explained in Note 5.3 to the consolidated financial statements, the Group’s evaluation of
goodwill for impairment at the group of cash-generating units (“GCGU”) level, and PP&E as part
of the relevant CGU, involves a comparison of the recoverable amount of each GCGU or CGU
to the carrying amount. Except for the ArcelorMittal Temirtau CGU, discussed above, key
assumptions that had a significant impact on the Group’s estimate of the recoverable amounts
of GCGUs and CGUs, (“the Relevant GCGUs and CGUs”), included future volumes of
shipments, future selling prices, variable costs and discount rate. Changes in these
assumptions could have a significant impact on the recoverable amount of a GCGU or CGU.
There are significant judgments made by management to estimate these assumptions,
including as it relates to the impact of the war in Ukraine, both specifically on the Group’s
Ukrainian operations, and more broadly, the impact of the war on the level of uncertainty
associated with these assumptions.

The estimate of the recoverable amount also considers the Group’s exposure to certain climate
related risks, which affect the estimates of the future cash flows. Where there is a legal
obligation in terms of carbon neutrality, the estimates of the future cash flows include the
decarbonization capital expenditure expected to be necessary to maintain the level of economic
benefits expected to be generated by the respective assets in the current condition. For the
jurisdictions where there is no legal obligation for carbon neutrality, the decarbonization related
uncertainty was reflected in the risk premiums in the discount rates applied to determine the
present value of the estimated future cash flows.

Auditing the recoverable amounts of the Relevant GCGUs and CGUs was complex and
required a high degree of auditor judgement and an increased extent of effort, including the
involvement of valuation specialists, due to the significant estimation uncertainty and subjective
nature of the assumptions used in the estimates, as described above.

367
How We Addressed We obtained an understanding, evaluated the design and tested the operating effectiveness of
the Matter in Our controls over management’s valuation methodology and assumptions used for the estimates of
Audit future cash flows. For example, we evaluated controls over the Group’s forecasting process used
to develop the estimated future cash flows and controls over management’s data included in the
estimated future cash flows.

We evaluated management’s ability to reasonably estimate future cash flows by comparing actual
results to management’s historical forecasts. As it relates to future volume of shipments, future
selling prices and variable costs, we compared management’s estimates to available external
third-party data regarding demand, selling prices and raw material prices. Specifically, as it relates
to the estimate of the recoverable amount of ArcelorMittal Kryvyi Rih CGU (representing the
Group’s operations in Ukraine), we evaluated the reasonableness of management’s assumption
as it relates to the timing for the end of war and the length of the post-war recovery period, by
independently developing a reasonable range of point estimates and comparing to management’s
estimate.

With the assistance of our valuation specialists, we evaluated the effects of climate-related
matters, including their impact on risk premiums and discount rates by considering, among other
factors, current legislation and regulations related to carbon emissions, as well as the Group’s
ongoing initiatives to transition to lower-carbon operations. Also, as part of our procedures, we
compared expected decarbonization capital expenditures against approved budgets and where
applicable, costs incurred to date.

With the assistance of our valuation specialists, we evaluated the discounted cash flows
methodology and assessed the discount rates used in the value in use estimates, by comparing
to underlying source information, testing the mathematical accuracy of the calculation, developing
an independent range of estimates and comparing the discount rate selected by management to
our range.

We also evaluated the adequacy of the disclosures in note 5.3 of the consolidated financial
statements.

Recoverability of Deferred Tax Assets (“DTAs”)

Description of the The DTA balance as of December 31, 2023, was $9,469 million, which is primarily related to the
Matter ArcelorMittal S.A. (parent company) tax integration. As explained in Note 10.4 to the consolidated
financial statements, ArcelorMittal S.A. has DTAs primarily related to tax losses and other tax
benefits carried forward. Under current tax law in Luxembourg, tax losses accumulated before
January 1, 2017, do not expire and are recoverable against future taxable income. The
assessment of the likelihood of future taxable profits being available, and specifically the length of
the forecast periods utilized, requires significant management judgment.

Auditing the recognition of ArcelorMittal S.A.’s DTA balances is subjective because the estimation
requires significant judgment, including the availability of future taxable income against which tax
deductions represented by the DTA can be offset. In addition, auditing the recognition of DTA
balances that are supported by the expectation of future taxable income arising beyond
ArcelorMittal S.A.’s 5-year planning horizon required significant auditor judgment and an
increased effort.

368
How We Addressed We obtained an understanding, evaluated the design and tested the operating effectiveness of
the Matter in Our controls over the Group’s assessment of the recoverability of deferred tax assets. For example,
Audit we tested controls over management’s review of the significant assumptions used in estimating
the projections of future taxable income, including management’s analysis of the sensitivity of the
length of the forecast periods to change, based on other reasonably likely outcomes that would
have a material effect on the recoverability of DTAs.

To test the recoverability of DTAs, among other procedures, we compared the projections of
future taxable income with the actual results of prior periods and, separately, against other
forecasted financial information prepared by the Group, such as that used in estimating the
recoverable amounts of the Relevant GCGUs and CGUs as described in the ‘Impairment of
Goodwill, Intangible Assets and Property, Plant and Equipment’ key audit matter above. We
assessed the Group’s evaluation of the length of the forecast periods to utilize the DTA by
independently developing a reasonable range of point estimates and comparing to management’s
estimate. Additionally, we tested the completeness and accuracy of the existing intragroup loan
and external debt agreements used by management to forecast financial income, the primary
input to future taxable income, and we performed sensitivity analyses over this forecast. Where
relevant and with the assistance of our tax professionals, we also evaluated management’s
proposed tax planning strategies, and potential tax implications of material current year
transactions, such as acquisitions.

We also evaluated the adequacy of the disclosures in Note 10.4 of the consolidated financial
statements in respect of ArcelorMittal S.A.’s DTAs.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included
in the consolidated management report and the corporate governance statement, but does not include the consolidated
financial statements and our report of the "réviseur d’entreprises agréé" thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information, we are required to report
this fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors for the Consolidated Financial Statements

The Board of Directors is responsible for the preparation and fair presentation of these consolidated financial statements
in accordance with IFRS as adopted by the European Union, and for such internal control as the Board of Directors
determines is necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.

The Board of Directors is responsible for presenting and marking up the consolidated financial statements in compliance
with the requirements set out in the Delegated Regulation 2019/815 on European Single Electronic Format as amended
(“the ESEF Regulation”).

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
369
Responsibilities of the “réviseur d’entreprises agréé” for the Audit of the Consolidated Financial Statements

The objectives of our audit are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue a report of the “réviseur
d’entreprises agréé” that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with the EU Regulation N° 537/2014, the Law of 23 July 2016 and with ISAs as
adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the EU Regulation N° 537/2014, the Law of 23 July 2016 and with ISAs as adopted
for Luxembourg by the CSSF, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the Board of Directors.

• Conclude on the appropriateness of Board of Directors use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our report of the “réviseur d’entreprises agréé” to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our report of the “réviseur
d’entreprises agréé”. However, future events or conditions may cause the Group to cease to continue as a going
concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.

• Assess whether the consolidated financial statements have been prepared, in all material respects, in compliance
with the requirements laid down in the ESEF Regulation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities and business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible for
the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.

370
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate to them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our report unless law or regulation precludes public disclosure about the matter.

Report on Other Legal and Regulatory Requirements

We have been appointed as “réviseur d’entreprises agréé” by the General Meeting of the Shareholders on May 2, 2023,
and the duration of our uninterrupted engagement, including previous renewals and reappointments, is two years.

The consolidated management report is consistent with the consolidated financial statements and has been prepared in
accordance with applicable legal requirements.

The corporate governance statement included in the consolidated management report is the responsibility of the Board of
Directors. The information required by Article 68ter paragraph (1) letters c) and d) of the law of 19 December 2002 on the
commercial and companies register and on the accounting records and annual accounts of undertakings as amended, is
consistent with the consolidated financial statements and has been prepared in accordance with applicable legal
requirements.

We have checked the compliance of the consolidated financial statements of the Group as at December 31, 2023, with
the relevant statutory requirements set out in the ESEF Regulations that are applicable to financial statements. For the
Group it relates to:

• Financial statements prepared in a valid xHTML format; and

• The XBRL markup of the consolidated financial statements using the core taxonomy and the common rules on
markups specified in the ESEF Regulation.

In our opinion, the consolidated financial statements of the Group as at December 31, 2023, identified as “mt-2023-12-31-
en”, have been prepared, in all material respects, in compliance with the requirements laid down in the ESEF Regulation.

We confirm that the audit opinion is consistent with the additional report to the audit committee or equivalent.

We confirm that the prohibited non-audit services referred to in the EU Regulation N° 537/2014 were not provided and that
we remained independent of the Group in conducting the audit.

For Ernst & Young

Société anonyme,
Cabinet de révision agréé

Olivier Lemaire, Réviseur d’entreprises agréé

February 28, 2024

371
 Management report

Management report of ArcelorMittal as parent company: Please ArcelorMittal's net loss amounted to $8,373 million as
refer to pages 3 to 243 and the following: compared to $6,236 million net income in 2023 and 2022,
respectively. Operating income amounted to $134 million in
ArcelorMittal as Parent Company 2023 as compared to operating income of $473 million in 2022.
ArcelorMittal (the “Parent Company”) was incorporated as a Operating income included mainly income from industrial
“Société Anonyme” under Luxembourg law on June 8, 2001 for franchise agreement fees ($854 million and $1,053 million for
an unlimited period. The Parent Company has its registered the years ended December 31, 2023 and 2022, respectively).
office in 24-26 boulevard d’Avranches, Luxembourg City and is Income from subsidiaries, associates and other investments
registered at the Register of Trade and Commerce of amounted to $2,984 million in 2023 as compared to $3,092
Luxembourg under the number B82.454. million in 2022. The Company recognized net impairments of
investments of $(12,915) million in 2023 as compared to net
The Parent Company’s corporate goal is the manufacturing,
impairment reversals of $904 million in 2022. The Company
processing and marketing of steel products, all other
recognized $1,026 million and $1,186 million net financing
metallurgical products, mining products and any other activity
gains in 2023 and 2022, respectively.
directly or indirectly related thereto. The Parent Company
realizes its corporate goal either directly or through the creation Updates on recent developments for ArcelorMittal group
of companies or the acquisition and holding of interests in On March 12, 2024, ArcelorMittal announced that it has signed
companies, partnerships, associations, consortia and joint a Share Purchase Agreement to acquire 65,243,206 shares,
ventures. In addition, ArcelorMittal is the head of the main tax representing approximately 28.4% equity interest in Vallourec,
integration in Luxembourg and the main funding vehicle of for €14.64 per share from Funds managed by Apollo Global
ArcelorMittal group. Also, ArcelorMittal implemented an Management, Inc., for a total consideration of approximately
industrial franchise agreement with group subsidiaries whereby €955 million. Transaction closing is subject to regulatory
the Parent Company licenses its business model for approvals and is expected to close in the second half of 2024.
manufacturing, processing and distributing steel to group
subsidiaries. The business model includes the ArcelorMittal
business intelligence, which is a package of business solutions
and implementation support combined with the development
and maintenance of intangibles such as the ArcelorMittal
brand, ArcelorMittal global information technology solutions,
ArcelorMittal global research & development and ArcelorMittal
global purchase agreements.

373
 Management report

Chief executive officer and chief financial officer’s responsibility statement

We confirm, to the best of our knowledge, that:

1. the financial statements of ArcelorMittal parent company presented in this Annual Report and prepared in conformity with
International Financial Reporting Standards as issued by the International Accounting Standards Board and as adopted by the
European Union, give a true and fair view of the assets, liabilities, financial position, profit or loss of ArcelorMittal; and

2. the management report includes a fair review of the development and performance of the business and position of ArcelorMittal
and undertakings included within the consolidation taken as a whole, together with a description of the principal risks and
uncertainties they face.

Chief executive officer Chief financial officer

Aditya Mittal Genuino Christino
March 27, 2024 March 27, 2024

374
 Financial statements

ArcelorMittal
Statements of financial position
(millions of U.S. dollars, except share and per share data)

ASSETS December 31, 2023 December 31, 2022

Current assets:
Cash and cash equivalents (note 4) 5,554 6,484
Current loans to related parties (note 10) 1,133 1,401
Prepaid expenses and other current assets, including 825 and 1,892 with related parties at
December 31, 2023 and 2022, respectively (notes 5 and 10) 893 1,924
Total current assets 7,580 9,809
Non-current assets:
Tangible and intangible assets (note 6) 21 30
Investments in subsidiaries (note 7) 46,556 59,399
Investments in associates, joint ventures and other investments (note 8) 2,769 2,770
Non-current loans to related parties (note 10) 14,828 11,694
Deferred tax assets (note 16) 8,720 8,384
Other assets (note 9) 130 250
Total non-current assets 73,024 82,527
Total assets 80,604 92,336

LIABILITIES AND EQUITY December 31, 2023 December 31, 2022

Current liabilities:
Short-term debt and current portion of long-term debt (note 11) 1,674 2,097
Current loans from related parties (note 10) 13,788 13,800
Accrued expenses and other liabilities, including 360 and 394 with related parties at December 31,
2023 and 2022, respectively (notes 10 and 17) 634 549
Total current liabilities 16,096 16,446
Non-current liabilities:
Long-term debt, net of current portion (note 11) 7,167 8,033
Non-current loans from related parties (note 10) 37 840
Deferred employee benefits (note 21) 18 15
Long-term provisions and other obligations (note 18) 146 180
Total non-current liabilities 7,368 9,068
Total liabilities 23,464 25,514
Commitments and contingencies (notes 19 and 20)
Equity: (note 13)
Common shares 303 312
Treasury shares (849) (1,902)
Mandatorily convertible notes — 509
Additional paid-in capital 26,534 28,007
Retained earnings 31,139 39,881
Reserves 13 15
Total equity 57,140 66,822
Total liabilities and equity 80,604 92,336

The accompanying notes are an integral part of these financial statements.

376
 Financial statements

ArcelorMittal
Statements of operations and statements of other comprehensive income
(millions of U.S. dollars, except share and per share data)

Year ended December 31,

2023 2022
Income from industrial franchise agreement fees (note 10) 854 1,053
General and administrative expenses, including 591 and 451 with related parties in 2023 and 2022
(note 10) (720) (580)
Operating income 134 473
Income from subsidiaries, joint ventures, associates and other investments (note 15) 2,984 3,092
(Impairment)/impairment reversal of investments (notes 7 and 8) (12,915) 904
Impairment of loans (note 10) (125) —
Financing gains - net, including 608 and 842 from related parties in 2023 and 2022, respectively
(notes 10 and 14) 1,026 1,186
(Loss)/income before taxes (8,896) 5,655
Income tax benefit (note 16) 523 581
Net (loss)/income (8,373) 6,236

Year ended December 31,

2023 2022
Consolidated earnings per common share (in U.S. dollars)
Basic 1.09 10.21
Diluted 1.09 10.18
Weighted average ordinary shares outstanding (in millions) (note 13)
Basic 842 911
Diluted 845 914

Year ended December 31,

2023 2022
Net (loss)/income (8,373) 6,236
Other comprehensive loss (2) (23)
Total comprehensive (loss)/income (8,375) 6,213

The accompanying notes are an integral part of these financial statements.

377
 Financial statements

ArcelorMittal
Statements of changes in equity
(millions of U.S. dollars, except share and per share data)

Reserves
Items that cannot be recycled
to the statements of operations
Unrealized
gains (losses)
on investments
Mandatorily Additional in equity Recognized
Share Treasury convertible paid-in Retained instruments at actuarial
1
Shares capital shares notes capital earnings Legal reserve FVOCI (losses) gains Total equity
Balance at December 31, 2021 911 350 (2,202) 509 31,168 33,979 40 3 (5) 63,842
Net income — — — — — 6,236 — — — 6,236
Other comprehensive income/(loss) — — — — — — — (28) 5 (23)
Total comprehensive income/(loss) — — — — — 6,236 — (28) 5 6,213
Cancellation of shares (note 13) — (38) 3,210 — (3,172) — — — — —
Recognition of share-based payments (note 13) 1 — 27 — 11 — — — — 38
Share buyback (note 13) (107) — (2,937) — — — — — — (2,937)
Dividend (note 13) — — — — — (332) — — — (332)
Other — — — — — (2) — — — (2)
Balance at December 31, 2022 805 312 (1,902) 509 28,007 39,881 40 (25) — 66,822
Net loss — — — — — (8,373) — — — (8,373)
Other comprehensive loss — — — — — — — (1) (1) (2)
Total comprehensive loss — — — — — (8,373) — (1) (1) (8,375)
Cancellation of shares (note 13) — (9) 671 — (662) — — — — —
Conversion of mandatorily convertible notes (note 13) 57 — 1,534 (509) (794) — — — — 231
Recognition of share-based payments (note 13) 2 — 56 — (17) — — — — 39
Share buyback (note 13) (45) — (1,208) — — — — — — (1,208)
Dividend (note 13) — — — — — (369) — — — (369)
Other — — — — — — — — —
Balance at December 31, 2023 819 303 (849) — 26,534 31,139 40 (26) (1) 57,140

1. Amounts are in millions of shares (treasury shares are excluded).

The accompanying notes are an integral part of these financial statements.

378
 Financial statements
ArcelorMittal
Statements of Cash Flows
(millions of U.S. dollars, except share and per share data)

Year ended December 31,

2023 2022
Operating activities:
Net (loss)/income (8,373) 6,236
Adjustments to reconcile net (loss) income to net cash provided by operations:
Depreciation of intangible and tangible assets (note 6) 9 8
Impairment/(impairment reversal) of investments (note 7 and note 8) 12,915 (904)
Impairment of loans (note 10) 125 —
Interest expense (note 14) 1,248 642
Interest income (note 14) (1,335) (1,005)
Income tax benefit (note 16) (523) (581)
Loss/(gain) on other derivative instruments (note 14) 106 (230)
Income from subsidiaries, joint ventures, associates and other investments (note 15) (2,984) (3,092)
Change in fair value adjustment on call option on mandatory convertible bonds (note 12) — 15
Unrealized foreign exchange effects, other provisions and non-cash operating expenses, net (1,045) (850)
Changes in assets and liabilities that provided (required) cash:
(Payments)/proceeds from receivables for services related to industrial franchise agreement (101) 158
Payments from payables for services related industrial franchise agreement (40) (15)
Other working capital and provisions movements — 2
Interest paid (557) (368)
Interest received 1,192 913
Amounts received from tax integration 1,357 184
Dividends received 2,984 3,092
Net cash provided by operating activities 4,978 4,205
Investing activities:
Capital increase in investments (note 7) (232) —
Capital decrease in investments (note 7) 196 —
Proceeds from loans granted to related parties 1,879 1,031
Loans granted to related parties (3,899) (296)
Other investing activities net — —
Net cash used in investing activities (2,056) 735
Financing activities:
Proceeds from short-term debt (note 4) 565 2,693
Proceeds from long-term debt (note 4) — 3,821
Payments of short-term debt (note 4) (2,832) (3,776)
Share buy back (note 13) (1,208) (2,937)
Dividends paid (note 13) (369) (332)
Other financing activities net (8) (8)
Net cash used in financing activities (3,852) (539)
Net (decrease)/increase in cash and cash equivalents (930) 4,401
Cash and cash equivalents:
At the beginning of the year 6,484 2,083
At the end of the year 5,554 6,484

The accompanying notes are an integral part of these financial statements.

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 Financial statements

(millions of U.S. dollars, except share and per share data)

SUMMARY OF NOTES TO FINANCIAL STATEMENTS

Note 1: General
Note 2: Basis of presentation
Note 3: Material accounting policies
Note 4: Cash and cash equivalents and reconciliation of cash flows
Note 5: Prepaid expenses and other current assets
Note 6: Tangible and intangible assets
Note 7: Investments in subsidiaries
Note 8: Investments in associates, joint ventures and other investments
Note 9: Other assets
Note 10: Balances and transactions with related parties
Note 11: Short-term and long-term debt
Note 12: Financial instruments
Note 13: Equity
Note 14: Financing gains - net
Note 15: Income from subsidiaries, joint ventures, associates and other investments
Note 16: Income tax
Note 17: Accrued expenses and other liabilities
Note 18: Long-term provisions and other obligations
Note 19: Commitments
Note 20: Contingencies
Note 21: Personnel and deferred employee benefits
Note 22: Expenses related to the réviseur d’entreprises agréé
Note 23: Subsequent events

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 Financial statements

(millions of U.S. dollars, except share and per share data)

Note 1: General earlier adoption permitted if both IFRS 15 "Revenue from

ArcelorMittal Parent Company (the “Company”) was Contracts with Customers" and IFRS 9 "Financial Instruments"
incorporated as a “Société Anonyme” under Luxembourg law on have also been applied. On December 9, 2021, the IASB issued
June 8, 2001 for an unlimited period. a narrow-scope amendment to the transition requirements of
IFRS 17 for entities that first apply IFRS 17 and IFRS 9 at the
The Company has its registered office in 24-26 boulevard same time whereby an entity is permitted to present
d’Avranches, Luxembourg City and is registered at the Register comparative information about a financial asset as if the
of Trade and Commerce of Luxembourg under the number classification and measurement requirements of IFRS 9 had
B82.454. been applied to that financial asset before. As the Company
does not issue insurance contracts, the adoption of this
The financial year of the Company starts on January 1 and ends standard did not have a material impact to the Company's
on December 31 each year. financial statements.
The Company’s corporate goal is the manufacturing, processing In addition, on January 1, 2023, the Company adopted the
and marketing of steel products, all other metallurgical products, following amendments:
mining products and any other activity directly or indirectly
related thereto. The Company realizes its corporate goal either • Amendments to IAS 8. The amendments clarify the
directly or through the creation of companies or the acquisition distinction between a change in accounting policies and a
and holding of interests in companies, partnerships, change in accounting estimates.
associations, consortia and joint ventures.
• Amendments to IAS 1 and IFRS Practice Statement 2. The
These financial statements correspond to the separate financial amendments are intended to help preparers in deciding
statements of the ArcelorMittal Parent Company and were which accounting policies to disclose in their financial
authorized for issuance on March 27, 2024 by the Company’s statements and gives further clarity on the materiality
Board of Directors. In conformity with the requirements of assessment of accounting policies. Changes in accounting
Luxembourg laws and regulations, the Company publishes policies are to be applied retrospectively while changes in
consolidated financial statements in accordance with accounting estimates are to be applied prospectively.
International Financial Reporting Standards (“IFRS”) as issued
by the International Accounting Standards Board (“IASB”) and • Amendments to IAS 12 "Income Taxes" for deferred taxes
as adopted by the European Union. related to assets and liabilities arising from a single
transaction. The amendments clarify how to account for
Note 2: Basis of presentation deferred tax on transactions such as leases and
decommissioning obligations.
Statement of compliance
On May 23, 2023, the IASB issued 'International Tax Reform —
The financial statements have been prepared in accordance
Pillar Two Model Rules (Amendments to IAS 12)' to respond to
with IFRS as adopted by the European Union and in particular
stakeholders’ concerns about the potential implications of the
with IAS 27 Separate Financial Statements as well as in
imminent implementation of the OECD Pillar Two model rules on
accordance with chapter IIbis and art 72bis of the Luxembourg
the accounting for income taxes. As a mandatory temporary
amended law of December 19, 2002.
exception to the accounting for deferred taxes arising from the
Adoption of new IFRS standards, amendments and implementation of the Pillar Two model rules, an entity does not
interpretations applicable from January 1, 2023 recognize and does not disclose information about deferred tax
assets and liabilities related to the OECD Pillar Two income
On January 1, 2023, the Company adopted IFRS 17 "Insurance taxes. Also, in periods in which Pillar Two legislation is enacted
Contracts", which is designed to achieve the goal of a or substantively enacted, but not yet in effect, an entity should
consistent, principle-based accounting for insurance contracts. disclose known or reasonably estimable information that helps
IFRS 17 requires insurance liabilities to be measured at a users of financial statements understand the entity’s exposure to
current fulfillment value and provides a more uniform Pillar Two income taxes arising from that legislation. The
measurement and presentation approach for all insurance Company adopted this amendment and accordingly applied this
contracts. IFRS 17 supersedes IFRS 4 "Insurance Contracts" exception immediately upon issuance of the amendment and
and related interpretations. On June 25, 2020, the IASB issued retrospectively as of January 1, 2023.
amendments to IFRS 17, including a deferral of the effective
The adoption of the above-mentioned amendments did not have
date to periods beginning on or after January 1, 2023. IFRS 17
a material impact to the Company's financial statements.
should be applied retrospectively unless impracticable, with

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(millions of U.S. dollars, except share and per share data)

New amendments applicable from 2024 onward liabilities and cash flows and to (ii) understand the effect of
supplier finance arrangements on an entity’s exposure to
On January 23, 2020, the IASB issued narrow-scope liquidity risk and how the entity might be affected if the
amendments to IAS 1 to clarify how to classify debt and other arrangements were no longer available to it. The amendments
liabilities as current or non-current. The amendments aim to to IAS 7 are effective for annual reporting periods beginning on
promote consistency in applying the requirements by helping or after January 1, 2024 (with earlier application permitted) and
companies determine whether, in the statement of financial the amendments to IFRS 7 when it applies the amendments to
position, debt and other liabilities with an uncertain settlement IAS 7.
date should be classified as current (due or potentially due to be
settled within one year) or non-current. The amendments On August 15, 2023, the IASB has published 'Lack of
include clarifying the classification requirements for debt a Exchangeability (Amendments to IAS 21)' that contains
company might settle by converting it into equity. On June 22, guidance to specify when a currency is exchangeable and how
2021, the IASB postponed the effective date of the to determine the exchange rate when it is not and how an entity
amendments. The amendments are effective for annual periods determines the exchange rate to apply when a currency is not
beginning on or after January 1, 2024 and are to be applied exchangeable. The amendments also require the disclosure of
retrospectively, with early adoption permitted. additional information when a currency is not exchangeable.
The amendments are effective for annual periods beginning on
On October 31, 2022, the IASB has issued 'Non-current or after January 1, 2025 with early adoption permitted. The
Liabilities with Covenants (Amendments to IAS 1)' to clarify how amendments do not apply retrospectively. An entity recognizes
conditions with which an entity must comply within twelve any effect of initially applying the amendments as an adjustment
months after the reporting period affect the classification of a to the opening balance of retained earnings when the entity
liability. The amendments are effective for annual periods reports foreign currency transactions. When an entity uses a
beginning on or after January 1, 2024 and are to be applied presentation currency other than its functional currency, it
retrospectively, with early adoption permitted. recognizes the cumulative amount of translation differences in
equity.
On September 22, 2022, the IASB issued amendments to IFRS
16 "Leases" with respect to the lease liability in a sale and The Company is still assessing the potential impact of the
leaseback transaction. The amendments require a seller-lessee amendments to IAS 21 to its financial statements and does not
to subsequently measure lease liabilities arising from a expect that the adoption of the amendments to IAS 7 and IFRS
leaseback in a way that it does not recognize any amount of the 7 will have a material impact to its financial statements. The
gain or loss that relates to the right of use it retains. The new Company does not plan to early adopt any amendments.
requirements do not prevent a seller-lessee from recognizing in
profit or loss any gain or loss relating to the partial or full Basis of measurement
termination of a lease. The amendments are effective for annual The financial statements have been prepared on a historical
periods beginning on or after January 1, 2024 with early cost basis, except for derivative financial instruments and
adoption permitted. The amendments are to be applied financial assets measured at fair value through other
retrospectively. comprehensive income ("FVOCI") which are measured at fair
value less cost to sell.
The Company does not expect that the adoption of these
amendments will have a material impact to its financial Functional and presentation currency
statements. The Company does not plan to early adopt any
amendments. These financial statements are presented in US dollars which is
the Company’s functional currency. Unless otherwise stated, all
New IFRS standards and amendments not yet endorsed by amounts are rounded to the nearest million, except share and
the European Union earnings per share data.

On May 25, 2023, the IASB has published 'Supplier Finance Use of estimates and judgments
Arrangements (Amendments to IAS 7 and IFRS 7)' to add
disclosure requirements, and ‘signposts’ within existing The preparation of financial statements in conformity with IFRS
disclosure requirements, which require entities to provide requires management to make judgments, estimates and
qualitative and quantitative information about supplier finance assumptions that affect the application of accounting policies
arrangements. In particular, entities will have to disclose in the and the reported amounts of assets, liabilities, income and
notes information that enables users of financial statements to expenses. Actual results may differ from these estimates.
(i) assess how supplier finance arrangements affect an entity’s

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 Financial statements

(millions of U.S. dollars, except share and per share data)

Estimates and underlying assumptions are reviewed on an Non-monetary items in a foreign currency that are measured at
ongoing basis. Revisions to accounting estimates are historical cost are translated using the exchange rate at the date
recognized in the period in which the estimates are revised and of the transaction. Foreign currency differences arising from
in any future periods affected. translation of non-monetary assets and liabilities are recognized
in the statements of operations.
The following summary provides further information about the
Company’s critical accounting policies under which significant (b) Fair value
judgments, estimates and assumptions are made. It should be
The Company classifies the bases used to measure certain
read in conjunction with the notes mentioned in the summary:
assets and liabilities at their fair value. Assets and liabilities
Deferred tax assets (note 16): The Company assesses the carried or measured at fair value have been classified into three
recoverability of deferred tax assets based on future taxable levels based upon a fair value hierarchy that reflects the
income projections, which are inherently uncertain and may be significance of the inputs used in making the measurements.
subject to changes over time. Judgment is required to assess
The levels are as follows:
the impact of such changes on the measurement of these
assets and the time frame for their utilization. In addition, the Level 1: Quoted prices in active markets for identical assets or
Company applies judgment to recognize income tax liabilities liabilities that the entity can access at the measurement date;
when they are probable and can be reasonably estimated
depending on the interpretation, which may be uncertain, of Level 2: Significant inputs other than within Level 1 that are
applicable tax laws and regulations. ArcelorMittal periodically observable for the asset or liability, either directly (i.e.: as prices)
reviews its estimates to reflect changes in facts and or indirectly (i.e.: derived from prices);
circumstances.
Level 3: Inputs for the assets or liabilities that are not based on
Impairment of investments in subsidiaries (note 7): In order to observable market data and require management assumptions
assess the recoverable amount of investments in subsidiaries, or inputs from unobservable markets.
the Company mainly determines their value in use on the basis
of the present value of cash flow projections. The estimates, (c) Financial instruments
judgments and assumptions applied for the value in use
(i) Non-derivative financial assets
calculations relate primarily to growth rates, expected changes
to average selling prices, shipments and direct costs of the The Company initially recognizes non-derivative financial assets
underlying investments. Assumptions for average selling prices on the date that they are originated, which is the date that the
and shipments are based on historical experience and Company becomes a party to the contractual provisions of the
expectations of future changes in the market. When determining instrument.
value in use, management also applies judgement when
The Company derecognizes a financial asset when the
assessing whether cash flows expected to arise to achieve
contractual rights to the cash flows from the asset expire, or it
sustainability and decarbonization targets are deemed to
transfers the right to receive the contractual cash flows from the
maintain the same level of economic benefits or whether they
financial asset in a transaction in which substantially all the
improve or enhance the asset's performance. Discount rates are
control of the financial asset are transferred. Any control in
reviewed annually.
transferred financial assets that is created or retained by the
Note 3: Material accounting policies Company is recognized as a separate asset or liability.

The accounting policies set out below have been applied Financial assets and liabilities are offset and the net amount
consistently by the Company to all periods presented in these presented in the statements of financial position when, and only
financial statements. when, the Company has legal right to offset the amounts and
intends either to settle on a net basis or to realize the asset and
(a) Foreign currency
settle the liability simultaneously.
Transactions in foreign currencies are translated to the
The Company has the following non-derivative financial assets:
functional currency of the Company at exchange rates at the
dates of the transactions. Monetary assets and liabilities Loans and other financial assets
denominated in foreign currencies at the reporting date are
translated to the functional currency at the exchange rate at that Loans and other financial assets are financial assets with fixed
date and the related foreign currency gain or loss are reported or determinable payments that are not quoted in an active
within financing costs-net in the statements of operations. market. Such assets are recognized initially at fair value plus

383
 Financial statements

(millions of U.S. dollars, except share and per share data)

any directly attributable transaction costs. Subsequent to initial the liability for at least twelve months after the financial position
recognition, loans and other financial assets are measured at date.
amortized cost using the effective interest method, less any
impairment losses when such loans and other financial assets Financial guarantee contracts where the Company is required to
are held within a business model whose objective is to hold make specified payments to reimburse the holder for a loss it
financial assets in order to collect contractual cash flows that are incurs because a specified debtor fails to make payment when
solely payments of principal and interest on the principal amount due in accordance with the terms of a debt instrument are
outstanding. Impairment losses are recognized based on a recognized at inception at fair value and subsequently
change in expected credit losses. Loans and other financial measured at the higher of the expected credit loss allowance
assets comprise receivables from other ArcelorMittal group and the amount initially recognized less any cumulative amount
entities, advances to suppliers and other receivables. of income recognized.

Cash and cash equivalents (iii) Derivative financial instruments

Cash and cash equivalents consist of cash and short-term The Company enters into derivative financial instruments
highly liquid investments that are readily convertible to cash with principally to manage its exposure to fluctuations in exchange
original maturities of three months or less at the time of rates and the exposure of certain of its subsidiaries to price risk
purchase and are carried at cost plus accrued interest, which for raw materials and energy. Derivative financial instruments
approximates fair value. are classified as current or non-current assets or liabilities based
on their maturity dates and are accounted for at trade date.
(ii) Non-derivative financial liabilities and equity instruments Embedded derivatives are separated from the host contract and
accounted for separately if they are not closely related to the
Classification as debt or equity host contract. The Company measures all derivative financial
Debt and equity instruments are classified as either financial instruments based on fair values derived from market prices of
liabilities or as equity in accordance with the substance of the the instruments or from option pricing models, as appropriate.
contractual arrangement. Gains or losses arising from changes in fair value of derivatives
are recognized in the statements of operations.
Equity instruments
(d) Investments in subsidiaries, associates, joint ventures
Any contract that evidences a residual interest in the assets of and other investments
an entity after deducting all of its liabilities is accounted for as an
equity instrument. Equity instruments issued by the Company Subsidiaries are those companies over which the Company
are recorded at the proceeds received, net of direct issuance exercises control. The Company controls an entity when it is
costs. A contract that is settled by the Company receiving or exposed to or has rights to variable returns from its involvement
delivering a fixed number of its own shares for no future with the entity and has the ability to affect those returns through
consideration, or exchanging a fixed number of its own shares its power over the entity. Investments in subsidiaries are
for a fixed amount of cash or another financial asset, is also accounted for under the cost method.
recognized as an equity instrument.
Associated companies are those companies over which the
Financial liabilities Company has the ability to exercise significant influence on the
financial and operating policy decisions and which are not
Financial liabilities such as loans and borrowings and other
subsidiaries. Generally, significant influence is presumed to exist
payables are recognized initially on the trade date, which is the
when the Company holds more than 20% of the voting rights.
date that the Company becomes a party to the contractual terms
Joint ventures are those companies over which the Company
of the instrument.
exercises joint control and has rights to the net assets of the
Financial liabilities are recognized initially at fair value less any arrangement. Investments in associates in which ArcelorMittal
directly attributable transaction costs. Subsequent to initial has the ability to exercise significant influence and joint ventures
recognition, these financial liabilities are measured at amortized are accounted for at cost.
cost using the effective interest method.
Investments in other entities, over which the Company does not
The Company derecognizes a financial liability when its have the ability to exercise significant influence and have a
contractual obligations are settled or cancelled or expired. readily determinable fair value are accounted for at fair value
with any resulting gain or loss recognized in the reserves in
Loans and borrowings are classified as current liabilities unless other comprehensive income. To the extent that these
the Company has an unconditional right to defer settlement of

384
 Financial statements

(millions of U.S. dollars, except share and per share data)

investments do not have a readily determinable fair value, they (f) Leases
are accounted for under the cost method.
As a lessee, the Company assesses if a contract is or contains
The Company reviews all its investments at each reporting date a lease at inception of the contract. A contract is or contains a
to determine whether there is an indicator that the investment lease if the contract conveys the right to control the use of an
may be impaired. If evidence indicates that the investment is identified asset for a period of time in exchange for
impaired, ArcelorMittal calculates the amount of the impairment consideration.
of the investment as being the difference between the higher of
The Company recognizes a right-of-use asset and a lease
the fair value less costs to sell or its value in use and its carrying
liability at the commencement date, except for short-term leases
value.
of twelve months or less and leases for which the underlying
(e) Impairment asset is of low value, which are expensed in the statement of
operations on a straight-line basis over the lease term.
Financial assets are assessed at each reporting date to
determine whether there is any evidence that it is impaired or The lease liability is initially measured at the present value of the
whenever changes in circumstances indicate that the carrying lease payments that are not paid at the commencement date,
amount may not be recoverable. A financial asset is impaired if discounted using the interest rate implicit in the lease, or, if not
evidence indicates that a loss event has occurred after the initial readily determinable, the incremental borrowing rate specific to
recognition of the asset, and that the loss event had a negative the country, term and currency of the contract. Lease payments
effect on the estimated future cash flows of that asset that can fixed payments, variable payments, as well as any extension.
be estimated reliably. The lease liability is subsequently measured at amortized cost
using the effective interest method and remeasured with a
Evidence that financial assets are impaired can include default corresponding adjustment to the related right-of-use asset when
or delinquency by a debtor, restructuring of an amount due to there is a change in future lease payments in case of
the Company on terms that the Company would not consider renegotiation, changes of an index or rate.
otherwise, indications that a debtor or issuer will enter
bankruptcy, adverse changes in the payment status of The right-of-use asset comprises, at inception, the initial lease
borrowers, economic conditions that correlate with defaults or liability, any initial direct costs and, when applicable, the
the disappearance of an active market for a security. obligations to refurbish the asset, less any incentives granted by
the lessors. The right-of-use asset is subsequently depreciated,
The recoverable amount of investments is the greater of value in on a straight-line basis, over the lease term. Right-of-use assets
use and fair value less costs to sell. In assessing value in use, are also subject to testing for impairment if there is an indicator
the estimated future cash flows are discounted to their present for impairment.
value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to In the statement of financial position, right-of-use assets and
the investment. lease liabilities are classified, respectively, as part of property,
plant and equipment and short-term/long-term debt,
An impairment loss in respect of a financial asset measured at respectively.
amortized cost is calculated as the difference between its
carrying amount and the present value of the estimated future (g) Provisions and accruals
cash flows discounted at the asset’s original effective interest The Company recognizes provisions for liabilities and probable
rate. Losses are recognized in the statements of operations and losses that have been incurred when it has a present legal or
reflected in an allowance account against receivables. Interest constructive obligation as a result of past events and it is
on the impaired asset continues to be recognized. probable that the Company will be required to settle the
obligation and a reliable estimate of the amount of the obligation
When a subsequent event causes the amount of impairment
can be made. If the effect of the time value of money is material,
loss to decrease or if there has been a change in the estimates
provisions are discounted using a current pre-tax rate that
used to determine the recoverable amount, the decrease in
reflects, where appropriate, the risks specific to the liability.
impairment loss is reversed through the statements of
When discounting is used, the increase in the provision due to
operations.
the passage of time is recognized as a financing cost.
Provisions for onerous contracts are recorded in the statements
of operations when it becomes known that the unavoidable
costs of meeting the obligations under the contract exceed the
economic benefits expected to be received.

385
 Financial statements

(millions of U.S. dollars, except share and per share data)

(h) Income taxes (j) Income from investments and from industrial franchise
agreement
The Company is the head of a tax integration and is fully liable
for the overall tax liability of the tax integration. Each of the Dividend income is recognized when the shareholders’ rights to
entities included in the tax integration is charged with the receive payment have been established. Interest income is
amount of tax that relates to its individual taxable profit and this accrued as earned, by reference to the principal outstanding
tax is paid to ArcelorMittal. Tax losses at entity level are and at the prevailing effective interest rate. Income from
transferred to the Company where they are offset with taxable contractually arranged corporate services is deducted from
profits for the determination of the net taxable income of the tax general and administrative expenses.
integration. Entities do not pay any tax expense to ArcelorMittal
on their individual taxable profits prior to full utilization of their In connection with an industrial franchise agreement ("IFA") with
individual cumulative tax losses. group subsidiaries, the Company licenses its business model for
manufacturing, processing and distributing steel to group
The tax currently payable is based on taxable profit for the year. subsidiaries. The business model includes the ArcelorMittal
Taxable profit differs from profit as reported in the statements of business intelligence, which is a package of business solutions
operations because it excludes items of income or expense that and implementation support combined with the development
are never taxable or deductible. The Company’s current income and maintenance of intangibles such as the ArcelorMittal brand,
tax expense (benefit) is calculated using tax rates that have ArcelorMittal global information technology solutions,
been enacted or substantively enacted as of the statements of ArcelorMittal global research & development and ArcelorMittal
financial position date. global purchase agreements. The industrial franchise fee is
calculated as a percentage of the steel sales of the franchisee
Deferred tax is recognized on differences between the carrying
entities after deduction of purchases of steel products from other
amounts of assets and liabilities, in the financial statements and
franchisee entities.
the corresponding tax basis used in the computation of taxable
profit, and is accounted for using the statements of financial (k) Earnings per common share
position liability method. Deferred tax liabilities are generally
recognized for all taxable temporary differences, and deferred Basic earnings per common share is computed by dividing net
tax assets are generally recognized for all deductible temporary income (loss) available to equity holders as per the consolidated
differences. Deferred tax assets are recognized for net financial statements by the weighted average number of
operating loss carry forwards of all entities within the tax common shares outstanding during the year. Diluted earnings
integration to the extent that it is probable that taxable profits will per share is computed by dividing net income (loss) available to
be available against which those carry forwards can be utilized. equity holders as per the consolidated financial statements by
the weighted average number of common shares and potential
Deferred tax assets and liabilities are measured at the tax rates common shares from share unit plans and outstanding stock
that are expected to apply in the period in which the liability is options as well as potential common shares from the conversion
settled or the asset realized, based on tax rates (and tax laws) of certain convertible bonds whenever the conversion results in
that have been enacted or substantively enacted by the a dilutive effect.
statement of financial position date. The measurement of
deferred tax liabilities and assets reflects the tax consequences (l) Equity settled share-based payments
that would follow from the manner in which the Company
ArcelorMittal issues equity-settled share-based payments to
expects, at the reporting date, to recover or settle the carrying
certain employees, including restricted share units ("RSUs") and
amount of its assets and liabilities.
performance share units ("PSUs"). Equity-settled share-based
The carrying amount of deferred tax assets is reviewed at each payments are measured at fair value (excluding the effect of non
statement of financial position date and reduced to the extent market-based vesting conditions) at the grant date. The fair
that it is no longer probable that sufficient taxable profits will be value determined at the grant date of the equity-settled share-
available to enable all or part of the asset to be recovered. based payments is expensed on a graded vesting basis over the
vesting period, based on the Company’s estimate of the shares
(i) Financing costs-net that will eventually vest and adjusted for the effect of non
market-based vesting conditions. Where the fair value
Financing costs-net include mainly interest income and calculation requires modeling of the Company’s performance
expense, gains (losses) on disposal of investments, fair value against other market index, fair value is measured using the
adjustments of the call option on mandatory convertible bonds, Monte Carlo pricing model to estimate the forecasted target
gains (losses) on other derivative instruments, premiums and performance goal for the Company and its peer companies. The
fees on borrowings and foreign exchange gains and losses. expected life used in the model has been adjusted, based on
386
 Financial statements

(millions of U.S. dollars, except share and per share data)

management’s best estimate, for the effects of non-

transferability, exercise restrictions and behavioral
considerations. In addition, the expected annualized volatility
has been set by reference to the implied volatility of options
available on ArcelorMittal shares in the open market, as well as,
historical patterns of volatility. For the RSUs and PSUs, the fair
value determined at the grant date of the equity-settled share-
based payments is expensed on a straight line method over the
vesting period.

Note 4: Cash and cash equivalents and reconciliation of

cash flows

Cash and cash equivalents consisted of the following:

December 31,
2023 2022
Cash at bank 4,110 2,536
Money market funds1 1,444 3,948
Total 5,554 6,484

1. Money market funds are highly liquid investments with a maturity of 3 months or
less from the date of acquisition.

Reconciliation of liabilities arising from financing activities

The table below details changes in the Company's liabilities

arising from financing activities, including both cash and non-
cash changes. Liabilities arising from financing activities are
those for which cash flows were, or future cash flows will be
classified in the Company's statement of cash flows from
financing activities.

Third parties Related parties

Short-term debt
Long-term debt, and current Non-current Current loans
net of current portion of long loans from from related
portion term debt related parties parties
Balance as of December 31, 2022 (see notes 10 and 11) 8,033 2,097 840 13,800
Unrealized foreign exchange effects 131 34 — —
Proceeds from short-term debt — — — 565
Payments of short-term debt — (1,452) — (1,380)
Current portion of long-term debt (1,005) 1,005 (803) 803
Other movements 8 (10) — —
Balance as of December 31, 2023 (see notes 10 and 11) 7,167 1,674 37 13,788

387
 Financial statements

(millions of U.S. dollars, except share and per share data)

Note 5: Prepaid expenses and other current assets

Balances with related parties are detailed in note 10.
Prepaid expenses and other current assets consisted of the
following: The tables below summarize the movements relating to the
Company prepaid expenses and other current assets for the
December 31, years ended December 31, 2023 and 2022:
2023 2022
Receivables from related Year ended December 31,
parties - corporate services 648 765 2023 2022
Receivables from related Prepaid expenses and other
parties - tax integration 75 838 current assets - opening balance 1,924 1,105
Derivative financial instruments Performance obligations
(note 12) 74 187 satisfied (IFA) 854 1,053
Other 96 134 Payments received (IFA) (934) (830)
Total 893 1,924 Payments received from tax
integration (1,357) (184)
Receivables from related parties for corporate services are Foreign exchange and others 406 780
mainly related to income from IFA fees. Receivables from Prepaid expenses and other
related parties on tax integration correspond to income tax current assets - closing balance 893 1,924
receivables from entities included in the tax integration headed
by the Company.

Note 6: Tangible and intangible assets

The Company's tangible and intangible assets amounted to 20 and 1 and 29 and 1 at December 31, 2023 and 2022, respectively.

Property, plant and equipment is summarized as follows:

Other fixtures and

Buildings and fittings, tools and Right-of-use
improvements equipments assets Total
Cost
At December 31, 2021 37 10 36 83
Additions — — 25 25
At December 31, 2022 37 10 61 108
Additions — — — —
At December 31, 2023 37 10 61 108

Accumulated depreciation and impairment

At December 31, 2021 (37) (10) (24) (71)
Depreciation charge for the year — — (8) (8)
At December 31, 2022 (37) (10) (32) (79)
Depreciation charge for the year — — (9) (9)
At December 31, 2023 (37) (10) (41) (88)

Carrying amount
At December 31, 2022 — — 29 29
At December 31, 2023 — — 20 20

388
 Financial statements

(millions of U.S. dollars, except share and per share data)

The Company's lease contracts relate mainly to the rental of the December 31, 2022
corporate office building. There are no sale and lease back
Greater
transactions and no restrictions or covenants are imposed by 1 year 2-3 4-5 than 5 TOTAL
or less years years
the Company's current effective lease contracts. years
Lease liabilities 8 17 4 — 29
On June 10, 2022, the Company extended the rental agreement
of the corporate office building for a three-year period and As of December 31, 2023 and December 31, 2022, there were
recognized accordingly a 25 increase in right-of use assets. no leases not yet commenced to which the Company was
committed.
The maturity analysis of the lease liabilities (undiscounted) as of
December 31, 2023 and December 31, 2022 was as follows: Intangible assets are summarized as follows:

December 31, 2023 There were no acquisition and no major amortization on patents
Greater and licenses for the years ended December 31, 2023, and
1 year 2-3 4-5 than 5 TOTAL December 31, 2022.
or less years years years
Lease liabilities 9 13 — — 22

Note 7: Investments in subsidiaries

Investments in subsidiaries are summarized as follows:

Cost
At December 31, 2021 137,436
Capital increase in kind 2,086
Contribution in kind (2,086)
Equity conversion 918
Other 36
At December 31, 2022 138,390
Capital increase2 232
Capital decrease1 (196)
Other 36
At December 31, 2023 138,462

Accumulated impairment
At December 31, 2021 (79,895)
Impairment reversal 2,153
Impairment (1,249)
At December 31, 2022 (78,991)
Impairment reversal 310
Impairment (13,225)
At December 31, 2023 (91,906)

Carrying amount
December 31, 2022 59,399
December 31, 2023 46,556

389
 Financial statements

(millions of U.S. dollars, except share and per share data)

Capital and
Carrying amount reserves (including
Ownership (%) result for 2023)* Result for 2023*
as of December and based on % of and based on %
Subsidiary Registered office 31, 2023 December 31, ownership of ownership
2023 2022
Luxembourg
AM Global Holding (Luxembourg) 100.00% 33,874 44,174 28,642 1,317
Luxembourg
Ispat Inland S.à r.l. (Luxembourg) 100.00% 3,725 3,415 3,725 —
ArcelorMittal Spain Holding,
S.L.U Madrid (Spain) 100.00% 3,057 4,570 2,774 836
ArcelorMittal Investment Luxembourg
S.à r.l. (Luxembourg) 13.52%** 2,698 2,772 2,698 101
Dabrowa Gornicza
ArcelorMittal Poland S.A. (Poland) 100.00% 2,204 2,455 1,960 (259)
Saint-Denis
ArcelorMittal France (France) 25.00% 472 696 519 (58)
Luxembourg
Hera Ermac1 (Luxembourg) 100.00% 351 576 351 (51)
ArcelorMittal Italy Holding
S.r.l.2 Milano (Italy) 62.03% 89 649 1,059 (4)
ArcelorMittal Canada Contrecoeur
Holdings Inc. (Canada) 1.18%*** 50 56 48 12
ArcelorMittal Warszawa Sp. Warszawa
z o.o. (Poland) 25.00% 16 16 46 (5)
ArcelorMittal Tesoreria S.A. Lazaro Cardenas
de C.V., SOFOM, ENR (Mexico) 100.00% 11 11 22 1
Other subsidiaries 9 9 — —
Total 46,556 59,399

*In accordance with unaudited annual accounts and IFRS reporting packages.
**Voting interest was 13.60% at December 31, 2023.
***Voting interest was 85.72% at December 31, 2023.

The main movements in 2023 are listed below:

indication that some of its investments in subsidiaries may be
1. Hera Ermac impaired or subject to an impairment reversal.

On April 17, 2023, the Company completed a 196 capital When an indication of impairment exists, the Company
decrease in Hera Ermac. estimates the recoverable amount of the investments in
subsidiaries measured based on the value in use of underlying
2. ArcelorMittal Italy Holding S.r.l.
steel and mining operations. The value in use was determined
On December 1, 2023, the Company completed a €191 million by estimating cash flows for a period of five years for
(210) capital increase in AM Italy Holding S.r.l. subsidiaries holding businesses engaged in steel operations
and over the life of the mines for those holding businesses
Impairment engaged in mining operations. With respect to steel operations,
the key assumptions for the value in use calculations are
The Company assesses at the end of each reporting period primarily the discount rates, growth rates, expected changes to
whether there is any indication that its investments in average selling prices, shipments and direct costs during the
subsidiaries may be impaired. As the Company’s investments in period. Assumptions for average selling prices and shipments
subsidiaries correspond mainly to holding companies, in making are based on historical experience and expectations of future
this assessment, the Company considered indicators of changes in the market. Cash flow forecasts are derived from the
impairment of steel and mining operations held directly and most recent financial plans approved by management. Beyond
indirectly by such holding companies such as significant the specifically forecasted period of five years, the Company
declines in operational results or changes in the outlook of extrapolates cash flows for the remaining years based on an
future profitability, among other potential indicators. As of estimated constant growth rate of 2%. This rate does not
December 31, 2023, the Company determined that there was an exceed the average long-term growth rate for the relevant

390
 Financial statements

(millions of U.S. dollars, except share and per share data)

markets. Regarding mining operations, the key assumptions for carbon neutrality objective and a legal obligation arises in the
the value in use calculations are primarily the discount rates, relevant jurisdiction. Due to economic developments,
capital expenditure, expected changes to average selling prices, uncertainties over the pace of transition to low-emission
shipments and direct costs during the period. technologies, political and environmental actions that will be
taken to meet the carbon reduction goals, regulatory changes
Management estimates discount rates using pre-tax rates that and emissions activity arising from climate-related matters, the
reflect current market rates for investments of similar risk. The Company’s assumptions used in the recoverable amount
rate for each investment was estimated from the weighted calculations are inherently uncertain and may ultimately differ
average cost of capital of producers, which operate a portfolio of from actual amounts.
assets similar to those of the Company’s assets. The weighted
average pre-tax discount rates used for the Company's steel In 2023, the Company recognized a total net impairment loss of
business range from 10.6% to 18.7% and vary by geographic 12,915 mainly related to lower value in use of the Company's
location. European operations following lower cash flow projections and
higher discount rates. Impairment losses were mainly related to
The Company considered its exposure to certain climate-related the Company's investments in AM Global Holding (10,336),
risks which could affect its estimates of future cash flow ArcelorMittal Spain Holding, S.L.U (1,513), ArcelorMittal Italy
projections applied for the determination of the recoverable Holding S.r.l. (770), ArcelorMittal Poland S.A. (251) and
amount of its investments. It considered the legal obligation of ArcelorMittal France (224). Impairment reversal corresponding
carbon neutrality by 2050 effective within the EU and in Canada to an impairment loss recognized in prior periods which no
following adoption of the Climate Law and the Net Zero longer exists or has decreased was related to the Company’s
Emission Accountability Act, respectively. Accordingly, with investment in Ispat Inland S.à r.l. for 310.
respect to its investments in flat steel operations in the EU and
in Canada, ArcelorMittal included future decarbonization capital In 2022, the Company recognized a total net impairment
expenditures necessary to maintain the level of economic reversal of 904. Impairment reversals corresponding to an
benefits expected to arise from the assets in their current impairment loss recognized in prior periods which no longer
condition in its assumptions for future cash flows of the exists or has decreased related to the Company’s investments
recoverable amount of the respective investments. For other in AM Global Holding for 2,106 and ArcelorMittal Investment
investment including steel operations applying the blast furnace S.à r.l. for 47. Impairment losses related mainly to the
basic oxygen furnace "BF-BOF" with decarbonization evolving Company's investments in Ispat Inland S.à r.l. (310),
at a different pace or not yet subject to a legal obligation of ArcelorMittal Poland S.A. (194), ArcelorMittal Spain Holding,
carbon neutrality, the Company increased risk premiums S.L.U. (356), ArcelorMittal Italy Holding S.r.l. (291) and
included in their discount rates until they are able to accelerate ArcelorMittal Tubular Products Karvina a.s. (88).
their decarbonization strategy to meet the Company's 2050

Note 8: Investments in associates, joint ventures and other investments

Investments in associates, joint ventures and other investments are summarized as follows:

December 31,
2023 2022
Investments accounted for at cost 2,743 2,743
Investments recorded at FVOCI 26 27
Total 2,769 2,770

391
 Financial statements

(millions of U.S. dollars, except share and per share data)

Investee Category Registered office Ownership (%) as of Carrying amount December 31,
December 31, 2023 2023 2022
AMNS Luxembourg Luxembourg
Holding S.A.1 Joint venture (Luxembourg) 60.00 % 2,120 2,120
2
VAMA Joint venture Loudi (China) 50.00 % 244 244
China Oriental3 Associate Hamilton (Bermuda) 13.69 % 379 379
Other 26 27
Total 2,769 2,770

1. AMNS Luxembourg Holding S.A.

AMNS Luxembourg Holding S.A. is the parent company of

shareholders and key management personnel. Related parties
the AMNS India joint venture formed between ArcelorMittal
include the Significant Shareholder, which is a trust of which Mr.
and Nippon Steel Corporation with 60% and 40% interest,
Lakshmi N. Mittal and Mrs. Usha Mittal are the beneficiaries and
respectively. AMNS India is an integrated flat carbon steel
which owned 39.87% of ArcelorMittal’s ordinary shares as of
manufacturer from iron ore to ready-to-market products with
December 31, 2023.
manufacturing facilities comprising iron making, steelmaking
and downstream facilities spread across India. Transactions with related parties were as follows:

2. VAMA Current loans to related parties

Valin ArcelorMittal Automotive Steel Co. Ltd. (“VAMA”) is a joint December 31,
venture between the Company and Hunan Valin and produces
Related party Category 2023 2022
steel for high-end applications in the automobile industry. VAMA
ArcelorMittal Brasil S.A. Subsidiary 660 201
supplies international automakers and first-tier suppliers as well
as Chinese car manufacturers and their supplier networks. AMNS Luxembourg Holding
S.A. Joint venture 166 153

3. China Oriental ArcelorMittal South Africa

Limited Subsidiary 75 65

China Oriental is a Chinese integrated iron and steel ArcelorMittal Mexico S.A. de
C.V. Subsidiary 70 70
conglomerate listed on the Hong Kong Stock Exchange
Acindar Subsidiary 38 22
(“HKEx”).
ArcelorMittal Canada Holdings
Inc. Subsidiary 30 26
For the year ended December 31, 2023 and 2022, the Company
assessed the recoverability of its investments and did not Quadra International Services
B.V. Subsidiary 3 787
identify any impairment indicator.
Other 91 77
Note 9: Other assets Total 1,133 1,401

Other assets are summarized as follows: The following table presents current loans to related parties in
original currencies:
December 31,
2023 2022 Presented in USD by original currency at December 31, 2023
Other derivative financial instruments (note 12) 59 170 Total CAD BRL EUR MXN USD Other
Receivables from sale of financial and 1,133 30 660 9 74 251 109
intangible assets 69 78
Other 2 2
Presented in USD by original currency at December 31, 2022
Total 130 250
Total CAD BRL EUR MXN USD Other
Note 10: Balances and transactions with related parties 1,401 26 201 806 74 220 74

The Company entered into transactions with related parties that Accrued interests associated with the loans to related parties
include companies and entities under common control and/or are also included in the above table.
common management, companies under control (directly or
indirectly) including their associates and joint ventures, their
392
 Financial statements

(millions of U.S. dollars, except share and per share data)

The Company assessed the recoverability of current loans Non-current loans to related parties
granted to related parties and recorded accordingly 125 and nil
impairment charge in 2023 and 2022, respectively, with respect December 31,
to the fully impaired loan granted to ArcelorMittal Liberia Related party Category 2023 2022
Holdings Limited (as of December 31, 2023 and 2022, the ArcelorMittal Brasil S.A. Subsidiary 6,493 3,558
nominal amount of the loan was 1,479 and 1,354, respectively). ArcelorMittal Canada Holdings
Inc. Subsidiary 2,975 2,912
Other current assets ArcelorMittal Mexico S.A. de
C.V. Subsidiary 1,657 1,382
December 31, Quadra International Services
2023 2022 B.V. Subsidiary 1,017 —
Related party Category
ArcelorMittal USA Holdings LLC Subsidiary 800 1,700
PJSC ArcelorMittal Kryvyi Rih Subsidiary 122 94
ArcelorMittal Poland S.A. Subsidiary 566 364
ArcelorMittal Dofasco G.P. Subsidiary 76 89
ArcelorMittal Treasury Americas
ArcelorMittal Mexico S.A. de LLC Subsidiary 400 700
C.V. Subsidiary 75 74
AM Green Energy Private
ArcelorMittal Treasury S.N.C. Subsidiary 74 187 Limited Subsidiary 394 30
ArcelorMittal Brasil S.A. Subsidiary 55 51 ArcelorMittal Mexico Holdings
ArcelorMittal Germany Holding B.V. Subsidiary 260 785
GmbH Subsidiary 49 53 ArcelorMittal South Africa
ArcelorMittal Energy S.C.A. Subsidiary 43 416 Limited Subsidiary 146 159

ArcelorMittal Investment ArcelorMittal Las Truchas, S.A.

S.à r.l. Subsidiary 40 29 de C.V. Subsidiary 106 88

ArcelorMittal Long Products Other 14 16

Canada G.P. Subsidiary 27 29 Total 14,828 11,694
ArcelorMittal Belgium Subsidiary 24 27
ArcelorMittal South Africa The following table presents the non-current loans to related
Limited Subsidiary 24 10 parties in original currencies:
ArcelorMittal France Subsidiary 21 26
ArcelorMittal Spain Holding, Presented in USD by original currency at December 31, 2023
S.L.U. Subsidiary 20 25
Total BRL CAD EUR INR MXN PLN USD ZAR
ArcelorMittal Sourcing Subsidiary 5 180
14,828 6,493 2,975 1,290 394 1,753 566 1,211 146
ArcelorMittal Temirtau JSC Subsidiary — 83
ArcelorMittal Flat Carbon
Europe Holding Subsidiary — 204 Presented in USD by original currency at December 31, 2022
Other 170 315 Total BRL CAD EUR INR MXN PLN USD ZAR
Total 825 1,892 11,694 3,558 2,912 798 30 1,461 364 2,412 159

Other current assets mainly include receivables related to

Current loans from related parties
industrial franchise fees and corporate income tax due by
subsidiaries forming part of the tax integration. December 31,
Related party Category 2023 2022
1
ArcelorMittal Treasury S.N.C. Subsidiary 11,622 12,291
ArcelorMittal Canada Holdings Inc.1 Subsidiary 1,325 961
ArcelorMittal Holdings AG Subsidiary 840 —
Hera Ermac Subsidiary — 547
Other 1 1
Total 13,788 13,800

1. Current loans correspond to cash pooling balances.

393
 Financial statements

(millions of U.S. dollars, except share and per share data)

The following table presents the current loans from related IFA fees
parties in original currencies:
Year ended December
Presented in USD by original currency at December 31, 2023 31,
Total CAD EUR USD Other Related party Category 2023 2022
13,788 599 3,588 9,600 1 ArcelorMittal Germany Holding
GmbH Subsidiary 113 132
ArcelorMittal Belgium Subsidiary 104 118
Presented in USD by original currency at December 31, 2022
ArcelorMittal Spain Holding,
Total CAD EUR USD Other S.L.U. Subsidiary 86 109
13,800 594 3,658 9,547 1 ArcelorMittal Dofasco G.P. Subsidiary 83 101
ArcelorMittal France Subsidiary 81 111
ArcelorMittal Poland S.A. Subsidiary 76 113
Accrued expenses and other liabilities ArcelorMittal Mexico S.A. de
C.V. Subsidiary 65 67
Accrued expenses and other liabilities with related parties ArcelorMittal Mediterranée Subsidiary 40 60
correspond mainly to payables to IFA service provided (research Other 206 242
& development, IT, purchasing and segment costs).
Total 854 1,053

December 31,
Related party Category 2023 2022
General and administrative expenses
ArcelorMittal Europe Subsidiary 97 76
General and administrative expenses are net of income from
ArcelorMittal Treasury S.N.C. Subsidiary 74 126
ArcelorMittal Innovación,
contractually arranged corporate services:
Investigación e Inversion,
S.L.U. Subsidiary 35 23
Year ended December
ArcelorMittal Maizières 31,
Research S.A. Subsidiary 29 26
Related party Category 2023 2022
Other 125 143
ArcelorMittal Europe Subsidiary 277 231
Total 360 394
ArcelorMittal Maizières
Research SA Subsidiary 113 103
ArcelorMittal France Subsidiary 62 37
Other 139 80
Non-current loans from related parties
Total 591 451
December 31,
Related party Category 2023 2022
Hera Ermac Subsidiary 37 —
ArcelorMittal Holdings AG Subsidiary — 840
Total 37 840

As of December 31, 2023 and 2022, the transaction currency of

the non-current loans from related parties is U.S. dollar.

394
 Financial statements

(millions of U.S. dollars, except share and per share data)

Financing gains – net Note 11: Short-term and long-term debt

Financing gains – net included the following (income)/expenses Short-term debt, including the current portion of long-term debt,
from related parties for the year ended December 31, 2023 and consisted of the following:
2022:
December 31,
Year ended December
31, 2023 2022
Related party (income)/ Short-term bank loans and other credit
expenses Category 2023 2022 facilities including commercial paper1 684 796

ArcelorMittal Treasury S.N.C. Subsidiary 579 (58) Current portion of long-term debt 981 1,293

ArcelorMittal Holdings AG Subsidiary 81 52 Lease obligations 2 9 8

Hera Ermac Subsidiary 9 17 Total 1,674 2,097

1
ArcelorMittal Finance Subsidiary — 42
1. The weighted average interest rate on short term borrowings outstanding were
ArcelorMittal Temirtau JSC Subsidiary — (18) 4.3% and 2.7% as of December 31, 2023 and December 31, 2022, respectively.
ArcelorMittal Italy Holding S.r.l. Subsidiary — (55) 2. See note 6.

ArcelorMittal Treasury ArcelorMittal entered into certain short-term committed bilateral

Americas LLC Subsidiary (16) (25)
credit facilities renewable on a annual basis. As of December
ArcelorMittal Mexico Holdings 31, 2023, facilities totaling approximately 0.6 billion remained
B.V. Subsidiary (21) (23)
fully available.
ArcelorMittal South Africa
Limited Subsidiary (23) (20)
On July 27, 2022, the Company entered into a 2.2 billion bridge
AM Green Energy Private
Limited Subsidiary (25) — term facility agreement with a financial institution. The facility
ArcelorMittal USA Holdings may be applied toward the purchase price for the acquisition of
LLC Subsidiary (38) (49) ArcelorMittal Pecém, as well as the refinancing of its existing
ArcelorMittal Poland S.A. Subsidiary (40) (29) indebtedness and the payment of related fees, costs and
Quadra International Services expenses. The facility was available for 12 months from signing
B.V. Subsidiary (66) (38) with two extension options of 6 months each at the borrower's
ArcelorMittal Canada Holdings discretion. On December 8, 2022, an amount of 1.76 billion was
Inc. Subsidiary (76) 18
cancelled, following the bonds issuances of September 20, 2022
ArcelorMittal Germany Holding
GmbH Subsidiary (92) (89) and November 29, 2022. After the cancellation, the remaining
ArcelorMittal Mexico S.A. de
available amount under the bridge facility as of December 31,
C.V. Subsidiary (103) (97) 2022 was 444. On January 31, 2023 the remaining amount
ArcelorMittal Brasil S.A. Subsidiary (743) (434) available under the bridge facility of 444 was cancelled.
Other (34) (36)
Commercial paper
Total (608) (842)
The Company has a commercial paper program enabling
1. merged into ArcelorMittal Investment S.á r.l. as of January 1, 2023. borrowings of up to €1.5 billion. As of December 31, 2023 and
2022, the outstanding amount was 684 and 796 , respectively.

395
 Financial statements

(millions of U.S. dollars, except share and per share data)

Long-term debt is comprised of the following:

December 31,
2023 2022
Type of Carrying amount at
Year of maturity Interest Interest rate1 amortized cost
5.4 billion Revolving Credit Facility Note 2023 -2025 Floating — —
€500 million Unsecured Notes 2023 Fixed 0.95 % — 391
€750 million Unsecured Notes 2023 Fixed 1.00 % — 799
€1.0 billion Unsecured Notes 2024 Fixed 2.25 % 585 567
750 Unsecured Notes 2024 Fixed 3.60 % 290 289
500 Unsecured Notes 2025 Fixed 6.13 % 183 183
€750 million Unsecured Notes 2025 Fixed 1.75 % 826 796
750 Unsecured Notes 2026 Fixed 4.55 % 400 399
€600 million Unsecured Notes 2026 Fixed 4.88 % 659 635
1.2 billion Unsecured Notes 2027 Fixed 6.55 % 1,195 1,193
500 Unsecured Notes 2029 Fixed 4.25 % 496 495
1.0 billion Unsecured Notes 2032 Fixed 6.80 % 989 988
1.5 billion Unsecured Bonds 2039 Fixed 7.00 % 672 672
1.0 billion Unsecured Notes 2041 Fixed 6.75 % 428 428
EIB loan 2025 Fixed 1.16 % 81 140
EIB loan 2032 Floating 5.22 % 309 299
Schuldschein loans 2025 - 2027 Fixed 2.5 % - 3.0 % 100 96
Schuldschein loans 2025 - 2027 Floating 5.1 % - 5.4 % 699 674
Other loans 2023 Fixed 1.80 % — 18
Other loans 2029 - 2035 Floating 0.7 % - 4.2 % 223 243
Total 8,135 9,305
Less current portion of long-term debt (981) (1,293)
Total long-term debt, (excluding lease obligations) 7,154 8,012
Long-term lease obligations2 13 21
Total long-term debt, net of current portion 7,167 8,033

1. Rates applicable to balances outstanding at December 31, 2023. For debt that has been redeemed in its entirety during 2023, the interest rates refer to the rates at
repayment date.
2. See note 6.

5.5 billion Revolving Credit Facility

with 0.1 billion lapsed at maturity. The Facility contains
On December 19, 2018, ArcelorMittal signed an agreement for a restrictive covenants, which among other things, limit
5.5 billion revolving credit facility (the "Facility"). This Facility encumbrances on the assets of ArcelorMittal and its
replaced the 5.5 billion revolving credit facility dated April 30, subsidiaries, the ability of ArcelorMittal’s subsidiaries to incur
2015 and which was amended and extended on December 21, debt and the ability of ArcelorMittal and its subsidiaries to
2016. The agreement incorporated a single tranche of 5.5 billion dispose of assets in certain circumstances. ArcelorMittal's long-
maturing on December 19, 2023, with two one-year extension term credit rating was upgraded on August 9, 2021 by Moody's
options. On November 27, 2019 and on November 26, 2020, to 'Baa3' and its outlook was changed to positive by Moody's on
ArcelorMittal exercised the option to extend the facility's maturity February 19, 2024. On June 16, 2023, Standard & Poor's
by one year to December 19, 2024 and to December 19, 2025, upgraded ArcelorMittal's outlook to positive and affirmed a long-
respectively. On December 19, 2023 extension to December 19, term credit rating of 'BBB-'. On April 27, 2021, the Facility was
2025 was completed for 5.4 billion of the 5.5 billion revolving amended so that the margin payable will be increased or
credit facility, decreased depending on the Company’s performance against
396
 Financial statements

(millions of U.S. dollars, except share and per share data)

two metrics measured annually against pre-defined targets with On June 25, 2021, the maturity of the Letter of Credit Facility
respect to its environmental and sustainability performance was extended to July 31, 2024.
(CO2 intensity of the Company’s European operations and the
number of facilities which have been certified by Bonds
ResponsibleSteel™). The Facility may be used for general On January 17, 2023, at maturity, ArcelorMittal fully repaid the
corporate purposes and was fully available as of December 31, outstanding €367 million (395) of its €500 million Fixed Rate
2023. The Company make drawdowns from and repayments on Notes due 2023.
the Facility in the framework of its cash management.
On May 19, 2023, at maturity, ArcelorMittal fully repaid
On September 30, 2010, ArcelorMittal entered into 500 revolving €750 million (812) Fixed Rate Notes due 2023.
multi-currency letter of credit facility (the "Letter of Credit
Facility"). The Letter of Credit Facility is used by the Company On January 17, 2024, at maturity, ArcelorMittal fully repaid the
and its subsidiaries for the issuance of letters of credit and other outstanding €529 million (585) of its €1.0 billion Fixed Rate
instruments. The terms of the letters of credit and other Notes due 2024.
instruments contain certain restrictions as to duration. The Letter
of Credit Facility was amended on October 26, 2012 and The margin applicable to ArcelorMittal’s principal credit facilities
September 30, 2014 to reduce its amount to 450 and to 350, (the Facility and certain other credit facilities) and the coupons
respectively. On July 31, 2019, the Company refinanced its on certain of its outstanding bonds are subject to adjustment in
Letter of Credit Facility by entering into a 350 revolving multi- the event of a change in its long-term credit ratings.
currency letter of credit facility, which initially matured on July
The following table provides details of the outstanding bonds on
31, 2022. On August 5, 2020, the Letter of Credit Facility
maturity, the original coupons and the current interest rates for
maturity was extended to July 31, 2023. On November 25,
the bonds impacted by changes in the long-term credit rating:
2020, the Letter of Credit Facility was increased to 395.

Nominal amount of
Initial value outstanding value Date of issuance Repayment date Interest rate 1 Issued at
€250 million Unsecured Notes €132 million July 4, 2019 January 17, 2024 2.25 % 105.59 %
€750 million Unsecured Notes €397 million January 17, 2019 January 17, 2024 2.25 % 99.72 %
750 Unsecured Notes 290 July 16, 2019 July 16, 2024 3.60 % 99.86 %
500 Unsecured Notes 184 June 1, 2015 June 1, 2025 6.13 % 100.00 %
€750 million Unsecured Notes €750 million November 19, 2019 November 19, 2025 1.75 % 99.41 %
750 Unsecured Notes 401 March 11, 2019 March 11, 2026 4.55 % 99.72 %
€600 million Unsecured Notes €600 million September 26, 2022 September 28, 2026 4.88 % 99.65 %
1.2 billion Unsecured Bonds 1.2 billion November 29, 2022 November 29, 2027 6.55 % 99.91 %
500 Unsecured Notes 500 July 16, 2019 July 16, 2029 4.25 % 99.00 %
1.0 billion Unsecured Bonds 1.0 billion November 29, 2022 November 29, 2032 6.80 % 99.37 %
1.0 billion Unsecured Bonds 457 October 8, 2009 October 15, 2039 7.00 % 95.20 %
500 Unsecured Bonds 229 August 5, 2010 October 15, 2039 7.00 % 104.84 %
1.0 billion Unsecured Notes 434 March 7, 2011 March 1, 2041 6.75 % 99.18 %

1. Rates applicable at December 31, 2023.

European Investment Bank (“EIB”) Loan

down the facility in full. As of December 31, 2023, €280 million
On June 2, 2021, ArcelorMittal signed a €280 million loan (309) was outstanding.
agreement with the European Investment Bank ("EIB") for
funding of research, development and innovation projects in On December 16, 2016, ArcelorMittal signed a €350 million
Europe over the period of 2021-2023. This facility benefits from finance contract with the EIB in order to finance European
a guarantee from the European Union under the European Fund research, development and innovation projects over the period
for Strategic Investments. On March 16, 2022 ArcelorMittal draw 2017-2020 within the European Union, predominantly in France,
Belgium and Spain, but also in Poland and Luxembourg. This
397
 Financial statements

(millions of U.S. dollars, except share and per share data)

operation benefits from a guarantee from the European Union Maturity profile
under the European Fund for Strategic Investments. As of
As of December 31, 2023 the scheduled maturities of short-term
December 31, 2023, €73 million (81) was outstanding.
debt and long-term debt including its current portion are as
Other loans On May 4, 2022, ArcelorMittal completed the follows:
offering of a €346.5 million variable rate loan, a €24.5 million
fixed rate loan, a €263 million variable rate loan and a Year of maturity Amount
€66 million fixed rate loan in the German Schuldschein market. 2024 1,674

On May 6, 2022, the Company further completed the offering of 2025 1,505
a €25 million fixed rate loan. The proceeds of these issuances 2026 1,124
were used for general corporate purposes. As of December 31, 2027 1,645
2023, €723 million (799) was outstanding. 2028 61
Subsequent 2,832
On December 21, 2018, the Company entered into a facility
Total 8,841
agreement with a group of lenders for €235 million to finance the
construction of a new hot strip mill in Mexico. This facility
became effective upon issuance of a guarantee by the
Oesterreichische Kontrollbank AG in March 2019. The last
installment under this agreement is due December 28, 2029.
The outstanding amount in total as of December 31, 2023 was
€122 million (134). On November 29, 2021, ArcelorMittal
entered into an agreement for financing with a financial
institution for net proceeds of CAD130 million (105) with
repayment over several dates in 2021, 2022 and 2023. As of
December 31, 2023, the loan was fully repaid.

Other loans relate to various debt with banks and public

institutions.

398
 Financial statements

(millions of U.S. dollars, except share and per share data)

The Company monitors its net debt in order to manage its capital. The following tables present the structure of the Company’s net debt
by original currency translated into USD at December 31, 2023 and December 31, 2022:

Presented in USD by original currency as at December 31,

2023
Total EUR USD CAD Other
Short-term debt including the current portion of long-term debt 1,674 1,315 359 — —
Long-term debt 7,167 2,715 4,452 — —
Cash and cash equivalents (5,554) (5,247) (307) — —
Net debt 3,287 (1,217) 4,504 — —

Presented in USD by original currency as at December 31,

2022
Total EUR USD CAD Other
Short-term debt and current portion of long-term debt 2,097 1,920 159 18 —
Long-term debt 8,033 3,295 4,738 — —
Cash and cash equivalents (6,484) (6,190) (293) — (1)
Net debt 3,646 (975) 4,604 18 —

The following tables summarize the Company’s bases used to measure its debt at fair value. Fair value measurement has been
classified into three levels based upon a fair value hierarchy that reflects the significance of the inputs used in making the
measurements.

As of December 31, 2023

Carrying amount Fair Value
Level 1 Level 2 Level 3 Total
Instruments payable bearing interest at fixed rates 7,014 6,969 278 — 7,247
Instruments payable bearing interest at variable rates 1,143 — 1,132 — 1,132
Total long-term debt, including current portion 8,157 6,969 1,410 — 8,379
Short term bank loans and other credit facilities
including commercial paper 684 — 698 — 698

As of December 31, 2022

Carrying amount Fair Value
Level 1 Level 2 Level 3 Total
Instruments payable bearing interest at fixed rates 8,120 7,783 274 — 8,057
Instruments payable bearing interest at variable rates 1,214 — 1,141 — 1,141
Total long-term debt, including current portion 9,334 7,783 1,415 — 9,198
Short term bank loans and other credit facilities
including commercial paper 796 — 796 — 796

Instruments payable classified as Level 1 refer to the Instruments payable classified as Level 2 refer to all debt
Company’s listed bonds quoted in active markets. The total fair instruments not classified as Level 1. The fair value of the debt
value is the official closing price as defined by the exchange on is based on estimated future cash flows converted into U.S.
which the instrument is most actively traded on the last trading dollar at the forward rate and discounted using current U.S.
day of the period, multiplied by the number of units held without dollar zero coupon rates and ArcelorMittal’s credit spread
consideration of transaction costs. quotations for the relevant maturities.

There were no instruments payable classified as Level 3.

399
 Financial statements

(millions of U.S. dollars, except share and per share data)

Note 12: Financial instruments convertible bonds. The Company manages the counter-party
risk associated with its instruments by centralizing its
Financial assets and liabilities mainly comprise: commitments and by applying procedures which specify, for
each type of transaction and underlying position, risk limits and/
• gross debt (see note 11)
or the characteristics of the counter-party. The Company does
• cash and cash equivalents (see note 4) not generally grant to or require guarantees from its
counterparties for the risks incurred. Allowing for exceptions, the
• derivative financial instruments (see below) Company’s counterparties are part of its financial partners and
the related market transactions are governed by framework
• other non-derivative financial assets and liabilities:
agreements (mainly International Swaps and Derivatives
Other non-derivative financial assets and liabilities include loans Association agreements which allow netting only in case of
from and to related parties (see note 10), certain prepaid counterparty default). Accordingly, derivative assets and
expenses and other current and non-current assets (see notes 5 derivative liabilities are not offset.
and 9), certain accrued expenses and other liabilities (see note
Fair values versus carrying amounts
17) and certain long-term provisions and other obligations (see
note 18). The estimated fair values of certain financial instruments have
been determined using available market information or other
The Company enters into derivative financial instruments to valuation methodologies that require judgment in interpreting
manage its exposure to fluctuations in exchange rates, the market data and developing estimates.
exposure of certain of its subsidiaries to price risk for raw
materials and energy and its obligations out of mandatorily

400
 Financial statements

(millions of U.S. dollars, except share and per share data)

The following table summarize assets and liabilities based on their categories at December 31, 2023:

Assets/
Carrying amount Non-financial Liabilities at Fair value
in statement of assets and amortized recognized in
financial position liabilities cost OCI Derivatives
ASSETS
Current assets:
Cash and cash equivalent 5,554 — 5,554 — —
Current loans to related parties 1,133 — 1,133 — —
Prepaid expenses and other current assets 893 33 786 — 74
Total current assets 7,580 33 7,473 — 74

Non-current assets:
Tangible and intangible assets 21 21 — — —
Investments in subsidiaries 46,556 46,556 — — —
Investments in associates, joint ventures and other investments 2,769 2,743 — 26 —
Non-current loans to related parties 14,828 — 14,828 — —
Deferred tax assets 8,720 8,720 — — —
Other assets 130 14 57 — 59
Total non-current assets 73,024 58,054 14,885 26 59
Total assets 80,604 58,087 22,358 26 133

LIABILITIES AND EQUITY

Current liabilities:
Short-term debt and current portion of long-term debt 1,674 — 1,674 — —
Current loans from related parties 13,788 — 13,788 — —
Accrued expenses and other liabilities 634 12 550 — 72
Total current liabilities 16,096 12 16,012 — 72

Non-current liabilities:
Long-term debt, net of current portion 7,167 — 7,167 — —
Non-current loans from related parties 37 — 37 — —
Deferred employee benefits 18 18 — — —
Long-term provisions and other obligations 146 86 54 — 6
Total non-current liabilities 7,368 104 7,258 — 6

Total equity 57,140 57,140 — — —

Total liabilities and equity 80,604 57,256 23,270 — 78

401
 Financial statements

(millions of U.S. dollars, except share and per share data)

The following table summarizes assets and liabilities based on their categories at December 31, 2022:

Carrying
amount in Non- Assets/
statement of financial Liabilities at Fair value
financial assets and amortized recognized in
position liabilities cost profit or loss Derivatives
ASSETS
Current assets:
Cash and cash equivalent 6,484 — 6,484 — —
Current loans to related parties 1,401 — 1,401 — —
Prepaid expenses and other current assets 1,924 102 1,635 — 187
Total current assets 9,809 102 9,520 — 187

Non-current assets:
Tangible and intangible assets 30 30 — — —
Investments in subsidiaries 59,399 59,399 — — —
Investments in associates, joint ventures and other investments 2,770 2,743 — 27 —
Non-current loans to related parties 11,694 — 11,694 — —
Deferred tax 8,384 8,384 — — —
Other assets 250 — 80 — 170
Total non-current assets 82,527 70,556 11,774 27 170
Total assets 92,336 70,658 21,294 27 357

LIABILITIES AND EQUITY

Current liabilities:
Short-term debt and current portion of long-term debt 2,097 — 2,097 — —
Current loans from related parties 13,800 — 13,800 — —
Accrued expenses and other liabilities 549 24 399 — 126
Total current liabilities 16,446 24 16,296 — 126

Non-current liabilities:
Long-term debt, net of current portion 8,033 — 8,033 — —
Non-current loans from related parties 840 — 840 — —
Deferred employee benefits 15 15 — — —
Long-term provisions and other obligations 180 86 65 — 29
Total non-current liabilities 9,068 101 8,938 — 29

Total equity 66,822 66,822 — — —

Total liabilities and equity 92,336 66,947 25,234 — 155

402
 Financial statements

(millions of U.S. dollars, except share and per share data)

The Company classifies the bases used to measure certain

As of December 31, 2022
assets and liabilities at their fair value. Assets and liabilities
Level 1 Level 2 Level 3 Total
carried or measured at fair value have been classified into three
Assets at fair value:
levels based upon a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Investments in equity instruments
at FVOCI 27 — — 27

The levels are as follows: Derivative current assets — 187 — 187

Derivative non-current assets — 170 — 170
Level 1: Quoted prices in active markets for identical assets or Total assets at fair value 27 357 — 384
liabilities that the entity can access at the measurement date;

Level 2: Significant inputs other than within Level 1 that are Liabilities at fair value:
observable for the asset or liability, either directly (i.e.: as prices) Derivative current liabilities — 126 — 126
or indirectly (i.e.: derived from prices); Derivative non-current liabilities — 29 — 29

Level 3: Inputs for the assets or liabilities that are not based on Total liabilities at fair value — 155 — 155
observable market data and require management assumptions
or inputs from unobservable markets. Investments in equity instruments at FVOCI classified as Level 1
refer to listed securities quoted in active markets. A quoted
The following tables summarize the bases used to measure market price in an active market provides the most reliable
certain assets and liabilities at their fair value on recurring basis: evidence of fair value and is used without adjustment to
measure fair value whenever available, with limited exceptions.
As of December 31, 2023
The total fair value is either the price of the most recent trade at
Level 1 Level 2 Level 3 Total
the time of the market close or the official close price as defined
Assets at fair value: by the exchange on which the asset is most actively traded on
Investments in equity the last trading day of the period, multiplied by the number of
instruments at FVOCI 26 — — 26
units held without consideration of transaction costs.
Derivative current assets — 74 — 74
Derivative financial assets and liabilities classified as Level 2
Derivative non-current assets — 59 — 59 refer to instruments to hedge fluctuations in foreign exchange
Total assets at fair value 26 133 — 159 rates and energy. The total fair value is based on the price a
dealer would pay or receive for the security or similar securities,
adjusted for any terms specific to that asset or liability. Market
Liabilities at fair value:
inputs are obtained from well-established and recognized
Derivative current liabilities — 72 — 72 vendors of market data and the fair value is calculated using
standard industry models based on significant observable
Derivative non-current liabilities — 6 — 6 market inputs such as foreign exchange rates, energy prices,
Total liabilities at fair value — 78 — 78 swap rates and interest rates.

403
 Financial statements

(millions of U.S. dollars, except share and per share data)

Portfolio of Derivatives

The portfolio associated with derivative financial instruments with ArcelorMittal Treasury S.N.C. as of December 31, 2023 is as follows:

Assets Liabilities

Notional Amount Fair Value Notional Amount Fair Value

Foreign exchange rate instruments
Forward purchase of contracts 200 32 324 (2)
Forward sale of contracts 111 — — —
Currency swaps sales — — — —
Foreign exchange option purchases 464 51 — (43)
Total foreign exchange instruments 83 (45)

Energy instruments
Term contracts sales 211 50 178 (33)
Term contracts purchases — — — —
Total energy instruments 50 (33)
Total 133 (78)

The portfolio associated with derivative financial instruments as of December 31, 2022 is as follows:

Assets Liabilities
Notional Notional
Amount Fair Value Amount Fair Value
Foreign exchange rate instruments
Forward purchase of contracts 421 47 363 (9)
Forward sale of contracts 46 1 256 (1)
Currency swaps sales — — — —
Foreign exchange option purchases 1,054 34 — —
Total foreign exchange instruments 82 (10)

Energy instruments
Term contracts sales 597 275 102 (120)
Term contracts purchases 1 — 52 (25)
Total energy instruments 275 (145)
Total 357 (155)

Risk management policy

The Company's operations expose it to a variety of financial

risks including interest rate risk, foreign exchange risk, liquidity Capital management
risk and risks in fluctuations in prices of energy on behalf of
The Company's objective when managing capital is to
certain of its subsidiaries. The Company actively monitors and
safeguard continuity, maintain a strong credit rating and healthy
seeks to reduce volatility of these exposures through a diversity
capital ratios to support its business and provide adequate
of financial instruments, where considered appropriate. The
return to shareholders through continuing growth.
Company has formalized how it manages these risks within the
Treasury and Financial Risk Management Policy, which has The Company sets the amount of capital required on the basis
been approved by Management. of annual business and long-term operating plans which include
capital and other strategic investments. The funding requirement
is met through a combination of equity, bonds and other long-
term and short-term borrowings.
404
 Financial statements

(millions of U.S. dollars, except share and per share data)

The Company monitors capital using a gearing ratio, being the these currencies relative to the U.S. dollar. These currency
ratio of net debt as a percentage of total equity. fluctuations, especially the fluctuation of the value of the U.S.
dollar relative to the euro, Brazilian real, Mexican peso,
December 31, Canadian dollar, Polish Zloty and South African rand could have
2023 2022 a material impact on its financial position and results of
Total equity 57,140 66,822 operations.
Net debt 3,287 3,646
Gearing 5.75% 5.46% ArcelorMittal also faces foreign currency translation risk, which
arises when ArcelorMittal translates its net debt (see note 11)
Interest rate risk and other items denominated in currencies other than the U.S.
dollar. Following its Treasury and Financial Risk Management
The Company is exposed to interest rate risk on short-term and Policy, the Company hedges a portion of its net exposure to
long-term floating rate instruments and on refinancing of fixed foreign exchange rates through forwards, options and swaps.
rate debt. The Company's policy is to maintain a balance of
fixed and floating interest rate borrowings, which is adjusted The Company may also use derivative instruments at the
depending on the prevailing market interest rates and outlook. corporate level to hedge debt recorded in foreign currency other
As at December 31, 2023, the long-term debt was comprised of than the functional currency or the balance sheet risk associated
86% fixed rate debt and 14% variable rate debt (see note 11). with certain monetary assets denominated in a foreign currency
The Company may utilize certain instruments to manage other than the functional currency.
interest rate risks. Interest rate instruments allow the Company
to borrow long-term at fixed or variable rates, and to swap the Liquidity Risk
rate of this debt either at inception or during the lifetime of the
Liquidity risk is the risk that the Company may encounter
borrowing. The Company and its counterparties exchange, at
difficulties in meeting its obligations associated with financial
predefined intervals, the difference between the agreed fixed
liabilities that are settled by delivering cash. ArcelorMittal
rate and the variable rate, calculated on the basis of the notional
Treasury S.N.C is responsible for the Company's funding and
amount of the swap. Similarly, swaps may be used for the
liquidity management. ArcelorMittal’s principal sources of
exchange of variable rates against other variable rates.
liquidity are cash generated from its operations and its credit
Foreign exchange rate risk lines. The Company actively manages its liquidity. Following the
Company's Treasury and Financial Risk Management Policy, the
The Company is exposed to changes in values arising from levels of cash, credit lines and debt are closely monitored and
foreign exchange rate fluctuations generated by its operating appropriate actions are taken in order to comply with the
activities. Because a substantial portion of ArcelorMittal’s covenant ratios, leverage, fixed/floating ratios, maturity profile
assets, liabilities, income and expenses are denominated in and currency mix.
currencies other than the U.S. dollar (its reporting currency),
ArcelorMittal has an exposure to fluctuations in the values of

405
 Financial statements

(millions of U.S. dollars, except share and per share data)

The contractual maturities of the below financial liabilities include 31, 2023, and as such are sensitive to movements in mainly
estimated loan repayments, interest payments and settlement of foreign exchange rates and interest rates. The cash flows are
derivatives, excluding any impact of netting agreements. The non-discounted, except for derivative financial liabilities where
cash flows are calculated based on market data as of December the cash flows equal their fair values.

December 31, 2023

Carrying Contractual from 2026 to
amount Cash Flow 2024 2025 2028 After 2028
Non-derivative financial liabilities
Bonds (6,812) (9,393) (1223) (1,329) (2,963) (3,878)
Loans over 100 (981) (1,073) (63) (446) (429) (135)
Other loans (1,048) (1,092) (799) (84) (186) (23)
Loans from related parties (877) (1,059) (86) (86) (887) —
Cash pooling (12,948) (12,948) (12,948) — — —
Total (22,666) (25,565) (15,119) (1,945) (4,465) (4,036)

Derivative financial liabilities

Foreign exchange contracts (45) (45) (44) — (1) —
Other commodities contracts (33) (33) (28) (2) (3) —
Total (78) (78) (72) (2) (4) —

December 31, 2022

Carrying Contractual from 2025 to
amount Cash Flow 2023 2024 2027 After 2027
Non-derivative financial liabilities
Bonds (7,926) (10,341) (1,547) (1,171) (3,969) (3,654)
Loans over 100 (1,087) (1,216) (95) (114) (828) (179)
Other loans (1,117) (1,157) (857) (38) (217) (45)
Loans from related parties (1,388) (1,512) (663) (849) — —
Cash pooling (13,251) (13,251) (13,251) — — —
Total (24,769) (27,477) (16,413) (2,172) (5,014) (3,878)

Derivative financial liabilities

Foreign exchange contracts (10) (10) (10) — — —
Other commodities contracts (145) (145) (116) (22) (7) —
Total (155) (155) (126) (22) (7) —

Energy price risks instruments to a 10% strengthening and a 10% weakening in

the U.S. dollar against the euro. A positive number indicates an
The Company hedges the exposure to fluctuations in natural
increase in profit or loss and other equity, where a negative
gas prices of one of its subsidiaries and uses financial
number indicates a decrease in profit or loss and other equity.
instruments such as forward purchases or sales, options and
swaps in order to manage such volatility. The fair value of such The sensitivity analysis includes the Company’s complete
energy instruments categorized as Level 2 was 17 and 130 at portfolio of foreign currency derivatives outstanding. The impact
December 31, 2023 and 2022, respectively. on the non €/$ derivatives reflects the estimated move of such
currency pairs, when the U.S. dollar appreciates or depreciates
Sensitivity analysis
10% against the euro, based on computations of correlations in
Foreign currency sensitivity the foreign exchange markets in 2023.

The following tables detail the Company’s derivative financial

instruments’ sensitivity as it relates to derivative financial

406
 Financial statements

(millions of U.S. dollars, except share and per share data)

sensitivity analysis is representative of derivative instruments

December 31, 2023
which have not yet matured.
Income Other Equity
10% strengthening in U.S. dollar 64 —
December 31, 2023
10% weakening in U.S. dollar (73) —
Other Equity Cash Flow
Income Hedging Reserves
Cash flow sensitivity analysis for variable rate instruments +10% in prices
The following table details the Company’s variable interest rate Energy 32 —
instruments. A change of 100 basis points (“bp”) in interest rates -10% in prices
during the period would have increased (decreased) profit or Energy (32) —
loss by the amounts presented below. This analysis assumes
that all other variables, in particular foreign currency rates,
remain constant.

December 31, 2023

Interest Rate Swaps/
Floating portion of net Forward
debt1 Rate Agreements
100 bp increase 28 —
100 bp decrease (28) —

1. Please refer to note 11 for a description of total net debt (including fixed and
floating portion)

Energy price risk sensitivity

The following tables detail the Company’s sensitivity to a 10%

increase and decrease in the relevant price of energy. This

Note 13: Equity

The Company’s shares consist of the following:

December 31, 2021 Movement in year December 31, 2022 Movement in year December 31, 2023
Issued shares 982,809,772 (105,000,000) 877,809,772 (25,000,000) 852,809,772
Treasury shares (71,916,570) (555,273) (72,471,843) 38,933,827 (33,538,016)
Total outstanding shares 910,893,202 (105,555,273) 805,337,929 13,933,827 819,271,756

Share capital

On January 14, 2022 and May 18, 2022, ArcelorMittal cancelled

45 million and 60 million treasury shares, respectively, to keep purchased under the 60,431,380 share buyback program (see
the number of treasury shares within appropriate levels. These below). Following this cancellation, the aggregate number of
cancellations took into account the shares already purchased shares issued and fully paid up and share capital decreased
under the 1,000 share buyback programs announced on from 877,809,772 and 312 as of December 31, 2022 to
November 17, 2021, which were completed on December 28, 852,809,772 and 303 as of December 31, 2023, respectively.
2021 and on May 5, 2022, respectively. Following these
Authorized shares
cancellations, the aggregate number of shares issued and fully
paid up and share capital decreased from 982,809,772 and 350 Following the cancellations of treasury shares on January 14,
as of December 31, 2021 to 877,809,772 and 312 as of 2022 and May 18, 2022, authorized share capital decreased
December 31, 2022, respectively. from 442 represented by 1,241,418,599 ordinary shares without
nominal value as of December 31, 2021 to 404 represented by
On April 28, 2023, ArcelorMittal cancelled 25 million treasury
1,136,418,599 ordinary shares without nominal value as of
shares to keep the number of treasury shares within appropriate
December 31, 2022.
levels. This cancellation took into account the shares already

407
 Financial statements

(millions of U.S. dollars, except share and per share data)

Following the cancellation of treasury shares on April 28, 2023, exchangeable into equity securities; to reduce ArcelorMittal’s
authorized share capital decreased from 404 represented by share capital, and/or to meet ArcelorMittal’s obligations arising
1,136,418,599 ordinary shares without nominal value as of from employee share programs.
December 31, 2022 to 395 represented by 1,111,418,599
ordinary shares without nominal value as of December 31, Mandatorily convertible subordinated notes
2023. On May 18, 2020, the Company completed an offering of
mandatorily convertible subordinated notes (“MCNs”) for 1,250.
Share buyback
The MCNs had a three-year maturity, were issued at 100% of
On April 25, 2022, ArcelorMittal completed its 1,000 share the principal amount and were mandatorily converted into
buyback program announced on February 11, 2022 under the common shares of the Company upon maturity unless
authorization given by the annual general meeting of converted earlier at the option of the holders or ArcelorMittal
shareholders of June 8, 2021 and repurchased 31.8 million during the conversion period or upon occurrence of certain
shares for a total value of €911 million (equivalent to 1,000) at defined events. The Significant Shareholder participated in the
an approximate average price per share of €28.68 ($31.49). offerings by contributing an amount of 100 for the MCNs. The
Company determined that the MCNs were a hybrid instrument
On June 8, 2022, ArcelorMittal completed a second share including an equity component and a debt component.
buyback program in the amount of 1,000 under the authorization
given by the annual general meeting of shareholders of May 4, On May 19, 2023, upon mandatory conversion of the
2022, bringing the total 2022 buybacks announced so far to 24,290,025 outstanding MCNs due May 18, 2023, ArcelorMittal
2,000. ArcelorMittal repurchased 33.3 million shares for a total delivered a total of 57,057,991 treasury shares (of which
value of €943 million (equivalent to 1,000) at an approximate 9,396,120 to the Significant Shareholder) with a carrying amount
average price per share of €28.26 ($29.99). of 1,534. Following the mandatory conversion, the Company
derecognized the 509 equity component presented separately in
On July 29, 2022, the Company announced a third share the statements of changes in equity and recognized a 1,025
buyback program of 60.4 million shares (approximately 1.4 (794 net of tax) decrease in additional paid-in capital.
billion based on share price as of July 26, 2022) to be
completed by the end of May 2023 (subject to market Treasury shares
conditions) under the authorization given by the annual general
As of December 31, 2023 and 2022, the Company held 33.5
meeting of shareholders of May 4, 2022. The Significant
million and 72.5 million treasury shares, respectively.
Shareholder has decided not to participate in the program
consistent with the position announced on February 25, 2022. Legal reserve
On March 31, 2023, ArcelorMittal completed the share buyback
program. The total repurchase value was €1,456 million (1,492) In accordance with Luxembourg Company Law, the Company is
at an approximate average price per share of €24.10 ($24.68). required to transfer a minimum of 5% of its net profit for each
financial year to a legal reserve. This requirement ceases to be
On May 5, 2023, ArcelorMittal announced the commencement necessary once the balance of the legal reserve reaches 10% of
of a new buyback program of up to 85 million shares under the the subscribed capital.
authorization given by the annual general meeting of
shareholders of May 2, 2023, to be completed by May 2025. Earnings per common share
The actual amount of shares that will be repurchased pursuant Basic earnings per common share is computed by dividing net
to this new program will depend on the level of post-dividend income attributable to equity holders of the parent in accordance
free cash flow ("FCF") (calculated as net cash provided by with the Company's consolidated financial statements by the
operating activities less purchases of property, plant and weighted average number of common shares outstanding
equipment and intangibles less dividends paid to non-controlling during the year. Diluted earnings per share is computed by
shareholders) generated over the period (the Company’s dividing net income attributable to equity holders of the parent in
defined policy is to return a minimum of 50% of post-dividend accordance with the Company's consolidated financial
annual FCF), the continued authorization by shareholders, and statements by the weighted average number of common shares
market conditions. At market closure on December 31, 2023, plus potential common shares from share unit plans whenever
ArcelorMittal had repurchased 26.2 million shares for a total the conversion results in a dilutive effect.
value of €601 million (652) at an average price per share of
€22.88 ($24.85).

The shares acquired under the different programs are intended

to meet ArcelorMittal’s obligations under debt obligations
408
 Financial statements

(millions of U.S. dollars, except share and per share data)

The following table provides the numerators and a reconciliation of the denominators used in calculating basic and diluted earnings per
common share for the years ended December 31, 2023 and 2022:

Year ended December 31,

2023 2022
Consolidated net income attributable to equity holders of the parent 919 9,302
Weighted average common shares outstanding (in millions) for the purpose of basic earnings per share 842 911
Incremental shares from assumed conversion of restricted share units and performance share units (in millions) 3 3
Weighted average common shares outstanding (in millions) for the purpose of diluted earnings per share 845 914

Dividends

Dividends are declared in U.S. dollar and are payable in either U.S. dollar or in euros.

Dividend per Total (in

Description Approved by share (in $) Payout date millions of $)
Dividend for financial year 2021 Annual general shareholders’ meeting on May 4, 2022 0.38 June 10, 2022 332
June 15, 2023 and
Dividend for financial year 2022 Annual general shareholders’ meeting on May 2, 2023 0.44 December 7, 2023 369

On May 2, 2023 at the annual general meeting of shareholders,

the shareholders approved the Company’s dividend of $0.44 per Note 15: Income from subsidiaries, joint ventures,
share. The dividend amounted to 369 and payment includes two associates and other investments
installments; the first installment of 185 was paid on June 15, Income from subsidiaries, joint ventures, associates and other
2023 and the second one of 184 was settled on December 7, investments of 2,984 in 2023 were dividends settled in cash
2023. mainly from ArcelorMittal Spain Holding, S.L.U for €1,283 million
(1,403), ArcelorMittal Canada Holdings Inc. for CAD738 million
In February 2024, the Board of Directors recommended the
(561) and 394, ArcelorMittal Investment S.à r.l. for €270 million
base annual dividend of $0.50 per share, to be paid in two equal
(286), ArcelorMittal Poland S.A. for PLN754 million (190) and
installments in June and December 2024, subject to the
ArcelorMittal France for €116 million (127).
approval of shareholders at the annual general meeting of
shareholders in April 2024. Income from subsidiaries, joint ventures, associates and other
investments of 3,092 in 2022 were dividends settled in cash
Note 14: Financing gains - net mainly from ArcelorMittal Canada Holdings Inc. for 1,496 and
Financing gains - net were as follows: CAD535 million (393), ArcelorMittal Spain Holding, S.L.U for
€750 million (770), ArcelorMittal France for €269 million (283)
Year ended December 31, and ArcelorMittal Poland S.A. for PLN460 million (97).
2023 2022
Note 16: Income tax
Interest expense (1,248) (642)
Interest income 1,335 1,005 The Company has adopted International Tax Reform – Pillar
Change in fair value adjustment on call Two Model Rules (Amendments to IAS 12 upon their release on
option on mandatory convertible bonds May 23, 2023). The Amendments provide a temporary
(note 12) — (15)
mandatory exception from deferred tax accounting for the top-up
Net (loss) / gain on other derivative tax, which is effective immediately, and require new disclosures
instruments (106) 230
about the Pillar Two exposure as of December 31, 2023. The
Net foreign exchange gains (losses) 1,016 507
Company has applied a temporary mandatory relief from
Other 29 101 deferred tax accounting for the impacts of the top-up tax and
Total 1,026 1,186 accounts for it as a current tax when incurred.

Transactions with related parties are detailed in note 10. Pillar Two legislation has been enacted or substantively enacted
in the jurisdiction of ArcelorMittal S.A. and in certain other
jurisdictions where the Company operates. The legislation is
effective for the Company’s financial year beginning January 1,
409
 Financial statements

(millions of U.S. dollars, except share and per share data)

2024. Based on the applicable criteria, the Company is subject Permanent items
to Pillar Two minimum tax and has substantially performed the
The permanent items consisted of:
assessment of its potential exposure. The assessment that is
being carried out is based on the latest available tax filings,
Year ended December 31,
country-by-country reporting for 2022, and the latest financial
information for 2023, and considers the Pillar Two legislation as 2023 2022
enacted in Luxembourg and published by OECD rules and Non-deductible (taxable) impairment
(reversals) 449 (408)
guidelines. Based on the assessment carried out so far,
Exempted dividend income (744) (769)
ArcelorMittal does not expect a material impact of the Pillar Two
legislation to its financial statements. Nevertheless, as the rules Other permanent items 11 (4)

are complex, uncertainty exists and unforeseen outcomes of the Total permanent items (284) (1,181)
Pillar Two legislation may exceptionally result in additional top-
up tax. Non-deductible (taxable) impairment (reversals): Impairments of
investments in subsidiaries are generally tax deductible under
Income tax benefit the Luxembourg tax legislation. However impairments are not
The components of the income tax benefit for each of the years tax-deductible if they (i) are neutralized with exempt dividend
ended December 31, 2023 and 2022 are summarized below: income, exempt capital gains and mark to market valuation, or
(ii) arise within the tax consolidation (up to the tax loss incurred
Year ended December 31, by the subsidiary). Similarly, reversals of previously recorded
2023 2022 impairments are generally taxable, unless they relate to
Total current tax benefit (418) (615)
impairments that arose within the tax consolidation. These non-
deductible (taxable) impairment (reversals) amounted to 1,800
Total deferred tax expense (benefit) (105) 34
and (1,636) in 2023 and 2022, respectively.
Total income tax benefit (523) (581)
Exempted dividend income: Under Article 166 of the
The following table reconciles the income tax benefit to the Luxembourg tax law, dividend income, liquidation proceeds, and
statutory tax expense as calculated: capital gains may be treated as tax-exempt to the extent certain
requirements are met relating to the parent’s participation in the
Year ended December 31, subsidiary. The participation exemption applies if the
2023 2022 Luxembourg parent maintains (or commits to hold) a minimum
Net income (8,373) 6,236 holding in a qualified subsidiary company (generally a
Income tax benefit (523) (581)
shareholding of at least 10% or having an acquisition cost of at
least €1.2 million) for an uninterrupted period of at least 12
Income before tax : (8,896) 5,655
months.
Tax expense (benefit) at the statutory rate* (2,219) 1,411
Permanent items (284) (1,181) Net change in measurement of deferred tax assets
Taxable results transferred from
subsidiaries included in the tax integration (133) 26 The 2023 net change in measurement of deferred tax assets of
Net change in measurement of deferred
2,005 mainly consists of 2,378 unrecognized deferred tax assets
tax assets 2,005 (992) due to impairments of investments not considered deductible for
Effects of foreign currency translation — — tax, and (373) recognition of tax losses for carried forward
Other taxes 108 155 based on revised taxable income forecast of ArcelorMittal and
its subsidiaries included in the tax integration.
Income tax benefit (523) (581)

The 2022 net change in measurement of deferred tax assets of

* Tax expense at the statutory rate of 24.94% is based on income before tax.
(992) mainly consists of (i) recognition of deferred tax assets of
(579) recognition of tax losses carried forward based on revised
taxable income forecast of ArcelorMittal and its subsidiaries
included in the tax integration and (ii) utilization of unrecognized

410
 Financial statements

(millions of U.S. dollars, except share and per share data)

tax losses carried forward following higher profitability of the tax positions. Changes to the financial statement recognition,
current year (net of write-downs of shares) for (413). measurement, and disclosure of tax positions is based on
management’s best judgment given any changes in the facts,
Uncertain tax positions circumstances, information available and applicable tax
ArcelorMittal takes income tax positions that management
laws. Considering all available information and the history of
believes are supportable and are intended to withstand
resolving income tax uncertainties, the Company believes that
challenge by tax authorities. Some of these positions are
the ultimate resolution of such matters will not have a material
inherently uncertain and include those relating to transfer pricing
effect on the Company’s financial position, statements of
matters and the interpretation of income tax laws applied to
operations or cash flows.
complex transactions. The Company periodically reassesses its

Deferred tax assets and liabilities

The origin of deferred tax assets and liabilities is as follows:

Assets Liabilities Net

December 31, December 31, December 31,
2023 2022 2023 2022 2023 2022
Tax losses carried forward 8,720 8,384 — — 8,720 8,384
Untaxed reserves — — — — — —
Deferred tax assets / (liabilities) 8,720 8,384 — — 8,720 8,384

Deferred tax assets not recognized by the Company as of December 31, 2023 were as follows:

Total deferred tax Recognized Unrecognized

Gross amount assets deferred tax assets deferred tax assets
Tax losses carried forward 120,982 30,173 8,720 21,453
Tax credits 8 8 — 8
Other temporary differences 9,535 2,378 — 2,378
Total 32,559 8,720 23,839

Deferred tax assets not recognized by the Company as of December 31, 2022 were as follows:

Total deferred tax Recognized Unrecognized

Gross amount assets deferred tax assets deferred tax assets
Tax losses carried forward 111,633 27,840 8,384 19,456
Tax credits 9 9 — 9
Total 27,849 8,384 19,465

As of December 31, 2023, deferred tax assets not recognized

relate to (i) tax losses carried forward, and (ii) other temporary amounted to 111,633 as of December 31, 2022. Of this amount
differences representing the impairments of investments not 33,617 was considered realizable, resulting in the recognition of
considered deductible for tax. The utilization of tax losses 8,384 of deferred tax assets at the applicable income tax rate in
carried forward is restricted to the taxable income of the Luxembourg. Under the Luxembourg tax legislation the tax
Luxembourg tax consolidated group. The utilization of tax losses losses generated until the end of 2016 can be carried forward
carried forward may be also restricted by the character of the indefinitely and are not subject to any specific yearly loss
income. utilization limitations. Of the total of 120,982 accumulated tax
losses, tax losses of 12,045 will expire within the next 13 years.
The total amount of accumulated tax losses amounted to The remaining amount can be carried forward indefinitely. The
120,982 as of December 31, 2023. Of this amount 34,964 was tax losses carried forward related primarily to tax deductible
considered realizable, resulting in the recognition of 8,720 of impairments of investments in consolidated subsidiaries
deferred tax assets at the applicable income tax rate in recorded by certain of the ArcelorMittal group’s holding
Luxembourg. The total amount of accumulated tax losses companies in Luxembourg. Out of the total tax losses carried
411
 Financial statements

(millions of U.S. dollars, except share and per share data)

forward, 61.1 billion may be subject to recapture in the future if evidence such as the character of (historical) losses and tax
the write-downs that caused them are reversed creating taxable planning to support the deferred tax assets recognized.
income unless the Company converts them to permanent
through sales or other organizational restructuring activities. At December 31, 2022, based upon the level of historical
taxable income and projections for future taxable income over
The Company believes that it is probable that sufficient future the periods in which the deductible temporary differences are
taxable profits will be generated to support the recognized anticipated to reverse, management believes it is probable that
deferred tax asset for tax losses carried forward in Luxembourg. ArcelorMittal will realize the benefits of the deferred tax assets
As part of its recoverability assessment the Company has taken of 8,384 recognized. The amount of future taxable income
into account: (i) its most recent forecast approved by required to be generated by ArcelorMittal’s subsidiaries to utilize
management and the Board of Directors, (ii) the likelihood that the deferred tax assets of 8,384 is at least 33,617. Historically,
the factors that have contributed to past losses in Luxembourg the Company has been able to generate taxable income in
will not recur, (iii) the fact that ArcelorMittal in Luxembourg is the sufficient amounts and believes that it will generate sufficient
main provider of funding to the Company’s consolidated levels of taxable income upcoming years to permit the Company
subsidiaries, leading to significant amounts of taxable interest to utilize tax benefits associated with tax losses carried forward
income on outstanding and future loans as updated based on and other deferred tax assets that have been recognized in its
most recent funding strategy, (iv) the expected level of interest financial statements. In the event that a history of recent losses
expenses in Luxembourg driven by the Group net debt level, (v) is present, the Company relied on convincing other positive
the industrial franchise agreement whereby ArcelorMittal S.A. evidence such as the character of (historical) losses and tax
licenses its business model for manufacturing, processing and planning to support the deferred tax assets recognized.
distributing steel to group subsidiaries, and (vi) other significant
and reliable sources of operational income earned from
ArcelorMittal’s European and worldwide operating subsidiaries
for centralized distribution and procurement activities performed Note 17: Accrued expenses and other liabilities
in Luxembourg. Accrued expenses and other liabilities are summarized as
follows:
The Company has also considered the implications of the net-
zero path and its carbon emissions intensity reduction targets on
December 31,
its future taxable profits expectations in relation to the existing
business models and the potential future financing of such 2023 2022

projects, resulting in no major impact on the estimated level of Payable on R&D and other IFA expenses 203 162
future taxable profit. In performing the assessment, the Derivative financial instruments (note 12) 72 126
Company estimates at which point in time its earnings Suppliers and other 217 107
projections are no longer reliable, and thus taxable profits are no Accrued interest 92 101
longer probable. Accordingly, the Company has established Accrued payroll and employee related
consistent forecast periods for its different income streams for expenses 29 21
estimating probable future taxable profits, against which the Current portion of financial guarantee AMNS
Luxembourg 1 21 19
unused tax losses can be utilized in Luxembourg.
Current portion of liability component of
MCNs 2 — 13
At December 31, 2023, based upon the level of historical
taxable income and projections for future taxable income over Total 634 549
the periods in which the deductible temporary differences are
1. See note 18.
anticipated to reverse, management believes it is probable that 2. The MCNs were fully repaid in 2023 (see note 13).
ArcelorMittal will realize the benefits of the deferred tax assets
of 8,720 recognized. The amount of future taxable income Amounts with related parties are detailed in note 10.
required to be generated by ArcelorMittal’s subsidiaries to utilize
the deferred tax assets of 8,720 is at least 34,964. Historically,
the Company has been able to generate taxable income in
sufficient amounts and believes that it will generate sufficient
levels of taxable income upcoming years to permit the Company
to utilize tax benefits associated with tax losses carried forward
and other deferred tax assets that have been recognized in its
financial statements. In the event that a history of recent losses
is present, the Company relied on convincing other positive
412
 Financial statements

(millions of U.S. dollars, except share and per share data)

Note 18: Long-term provisions and other obligations In addition, guarantees given on behalf of joint ventures
included 3,490 and 3,088 as of December 31, 2023 and 2022
Long-term provisions and other obligations are summarized as
corresponding to ArcelorMittal's 60% guarantee of debt under
follows:
the term loan agreements entered into by AMNS India with
various Japanese banks.
December 31,
2023 2022 Guarantees related to credit lines granted to subsidiaries,
Derivative instruments (note 12) 6 29 associates and other include 918 and 2,836 with respect to
Provision for financial guarantee1 86 86 credit facilities granted to ArcelorMittal Brasil in connection with
Non-current portion of financial guarantee to
the acquisition of ArcelorMittal Pecém and 87 and 454 with
AMNS Luxembourg2 52 65 respect to credit facilities granted to AM Green Energy Private
Other 2 — Limited in connection with the construction of a solar and wind
Total 146 180 power project in India, as of December, 31, 2023 and 2022
respectively.
1. The provision for financial guarantee is related to the unrecoverable overdraft of
a subsidiary of ArcelorMittal group in the framework of the guarantee issued by the Corporate guarantee letter
Company in favor of ArcelorMittal Treasury S.N.C. in relation with bilateral cash
management and financial transactions (see note 19). In the framework of a support agreement with ArcelorMittal
2. On March 16, 2020, AMNS Luxembourg entered into a 5.1 billion ten-year term Canada Holdings Inc. ("AMCH"), the Company undertakes to
loan agreement with several Japanese banks (see note 11). The facility is take all such actions as necessary to enable AMCH to reacquire
guaranteed by the joint venture partners in proportion to their respective interest in
the joint venture. The Company recognized at inception a 117 liability
the preferred shares it issued to its shareholder Mittal Steel
corresponding to the fair value determined using the loan agreement terms, a International Holdings B.V. in case AMCH exercises such right.
Level 3 unobservable input. On January 1, 2022, ArcelorMittal Netherlands B.V acquired the
preferred shares following the merger with Mittal Steel
Note 19: Commitments International Holdings B.V. Others
Commitments given are summarized as follows:
The Company has issued a guarantee in relation with bilateral
cash management and financial transaction in favor of
December 31,
ArcelorMittal Treasury S.N.C. for a maximum amount of €20
2023 2022 billion, covering overdraft granted by ArcelorMittal Treasury
Guarantees given to third parties on behalf S.N.C to group subsidiaries for 8,374 and 7,339 as of December
of subsidiaries,associates and joint ventures 7,019 6,432
31, 2023 and 2022, respectively.
Unused credit lines granted to subsidiaries,
associates and other 1,032 3,318
Hera Ermac, a wholly-owned subsidiary of the Company used
Letter of credit facilities1 471 353
the proceeds from the issuance of unsecured and
Total 8,522 10,103 unsubordinated bonds mandatorily convertible into preferred
shares of such subsidiary to acquire notes linked to shares of
1. The notional amount of the letter of credit facilities amounted to 686 and 520 as
of December 31, 2023 and 2022, respectively.
the listed associate China Oriental. The notes were issued by
the Company’s affiliate ArcelorMittal Holdings AG. The Company
The Company is jointly and severally liable for the following warrants to own directly or indirectly the entire legal and
entities: ArcelorMittal Treasury S.N.C., ArcelorMittal Sourcing beneficial interest in the share capital of ArcelorMittal Holdings
and ArcelorMittal Energy S.C.A. AG for so long as any notes remain outstanding. ArcelorMittal
also undertakes to provide any funding which would be
Guarantees given necessary to this affiliate to meet its obligations with respect to
Guarantees given to third parties on behalf of subsidiaries, the notes.
associates and joint ventures included guarantees given on
behalf of joint ventures of 421 and 354 relating to AM/NS Calvert Note 20: Contingencies
LLC debt and 208 and 115 relating to ArcelorMittal Tubular The Company is currently and may in the future be involved in
Products Jubail as of December 31, 2023 and 2022, litigation, arbitration or other legal proceedings. Provisions
respectively. Guarantees given on behalf of joint ventures also related to legal and arbitration proceedings are recorded in
included 480 and 341 in relation to outstanding lease liabilities accordance with the principles described in note 3.
for vessels operated by Global Chartering as of December 31,
2023 and 2022, respectively. On May 15, 2012, ArcelorMittal received a writ of summons on
behalf of Association des Actionnaires d'Arcelor ("AAA"), a

413
 Financial statements

(millions of U.S. dollars, except share and per share data)

French association of former minority shareholders of Arcelor to Year ended December

appear before the civil court of Paris. The AAA alleged in 31,
particular that, based on Mittal Steel’s and Arcelor’s disclosure 2023 2022
and public statements, investors had a legitimate expectation Base salary and/or directors fees 2 2
that the exchange ratio in the second-step merger would be the Short-term performance-related bonus 3 3
same as that of the secondary exchange offer component of
Mittal Steel’s June 2006 tender offer for Arcelor (i.e., 11 Mittal The fair value of the shares attributed in the framework of RSU
Steel shares for 7 Arcelor shares), and that the second-step and PSU plans to the ArcelorMittal’s key management
merger did not comply with certain provisions of company law. personnel is recorded as an expense in the statements of
AAA claimed, inter alia, damages in a nominal amount and operations over the relevant vesting periods.
reserved the right to seek additional remedies including the
cancellation of the merger. The proceedings before the civil As of December 31, 2023 and 2022, ArcelorMittal did not have
court of Paris were stayed, pursuant to a ruling of such court on outstanding any loans or advances to members of its Board of
July 4, 2013, pending a preparatory investigation (instruction Directors or key management personnel, and had not given any
préparatoire) by a criminal judge magistrate (juge d’instruction) guarantees for the benefit of any member of its Board of
triggered by the complaints of AAA and several hedge funds Directors or key management personnel.
(who quantified their total alleged damages at 282). The
dismissal of charges (non-lieu) ending the preparatory Deferred employee benefits
investigation became final in March 2018. On March 6, 2020
Certain employees of ArcelorMittal are included in the unfunded
AAA revived its claim before the civil court of Paris on its behalf
defined benefit pension plan managed by the Company’s
and on behalf of the hedge funds who had also filed a criminal
affiliate ArcelorMittal Luxembourg. The Company has a defined
complaint, as well as 2 new plaintiffs. The complaint filed by
benefit obligation with respect to this plan by virtue of a
AAA quantifies the total damages claimed at 431 (€390 million).
contractual arrangement with ArcelorMittal Luxembourg.
A final hearing date for oral arguments has been scheduled for
Benefits are based on such employees’ length of service and
June 2024.
applicable pension table under the terms of the agreement. This
defined benefit pension plan was closed to new entrants on
Note 21: Personnel and deferred employee benefits
December 31, 2007 and replaced by a defined contribution
Employees and key management personnel pension plan for active members financed by employer and
employee contributions.
As of December 31, 2023 and 2022, the Company had a As of December 31, 2023 and 2022, the pension plan benefits
workforce comprising 173 and 160 people, respectively, and the were 18 and 15, respectively.
total annual compensation of the Company’s employees paid in
2023 and 2022 was as follows: The following table details the reconciliation of the defined
benefit pension obligation:
Year ended December
31, December 31,
2023 2022 2023 2022
Employee Information Change in benefit obligation
Wages and salaries 36 31 Benefit obligation at beginning of period 15 23
Social security costs 3 3 Interest cost 1 —
Other staff expenses 8 6 Actuarial gain 1 (5)
Total 47 40 Financial assumptions 1 (5)
Foreign currency exchange rate differences
The total annual compensation of ArcelorMittal’s key and other movements 1 (2)
management personnel, including its Board of Directors, paid in Benefits paid — (1)
2023 and 2022 was as follows: Benefit obligation at end of period 18 15

The following table details the components of the pension cost

recognized in the statements of operations:

414
 Financial statements

(millions of U.S. dollars, except share and per share data)

often affect multiple assumptions simultaneously, and the effects

Year ended December 31,
of changes in key assumptions are not necessarily linear.
2023 2022
Net periodic pension cost Share-based payments
Interest cost 1 —
Total 1 — ArcelorMittal Equity Incentive Plan
ArcelorMittal operates a long-term incentive plan ("the
Service cost is included in general administrative expense. ArcelorMittal Equity Incentive Plan") to incentivize shareholder
Interest cost is included in financing costs – net. wealth creation in excess of performance of a peer group and
incentivize executives to achieve strategy. The ArcelorMittal
Assumptions used to determine benefit obligations Equity Incentive Plan is intended to align the interests of the
Company’s shareholders and eligible employees by allowing
December 31, them to participate in the success of the Company. The
2023 2022 ArcelorMittal Equity Incentive Plan provides for the grant of
Discount rate 3.30 % 3.75 % RSUs and PSUs to eligible Company employees (including
Executive Officers) and is designed to incentivize employees,
Rate of compensation increase 3.20 % 3.30 %
improve the Company’s long-term performance and retain key
Cash contributions and maturity profile of the plans employees.

In 2023, the Company expects its cash contributions to amount The grant of PSUs under the ArcelorMittal Equity Incentive Plan
to 4 for pension plans. aims to serve as an effective performance-enhancing scheme
based on the employee’s contribution to the eligible
At December 31, 2023, the duration of the liabilities related to achievement of the Company’s strategy. Awards in connection
the pension plan was 10 years (2022:11 years). with PSUs are subject to the fulfillment of cumulative
performance criteria over a three-year period from the date of
Risks associated with defined benefit plans
the PSU grant such as return on capital employed ("ROCE"),
Through its defined benefit pension plans, ArcelorMittal is total shareholders return ("TSR"), earnings per share ("EPS")
exposed to a number of risks, the most significant of which is and gap to competition (until 2022). Since 2021, performance
the change in bond yields. A decrease in corporate bond yields criteria also include a set of three weighted environmental,
will increase plan liabilities. social and governance ("ESG") indicators representing 30% and
20% award vesting for the Executive Office and Executive
Sensitivity analysis Officers, respectively, including health & safety, climate action
The following information illustrates the sensitivity to a change in and diversity & inclusion ("D&I"). For health & safety (10%
certain assumptions related to ArcelorMittal’s pension plan (as award vesting for both Executive Office and Executive Officers),
of December 31, 2023, the defined benefit obligation (“DBO”) for the target is to halve the fatality frequency rate versus a defined
pension was 18): baseline (the baseline is the adjusted average frequency rate
over 5 years before the grant). For D&I (10% and 5% award
Effect on 2024 vesting for Executive Office and Executive Officers,
pre-tax pension Effect of Effect respectively), the target is to reduce by 40% the gap between
expense on December
(sum of service 31, 2023 DBO the Company's 2030 target of having 25% women in
cost and DBO management and 2020 baseline. For climate (10% and 5%
interest cost) 1
award vesting for Executive Office and Executive Officers,
Change in assumption
respectively), the CO2 emission target has been set to be
100 basis point decrease in
discount rate — 2 reached by the end of the vesting period. The employees
100 basis point increase in
eligible to receive PSUs are a sub-set of the group of employees
discount rate — (2) eligible to receive RSUs.
100 basis point decrease in rate
of compensation — (1) RSUs granted under the ArcelorMittal Equity Incentive Plan are
100 basis point increase in rate of designed to provide a retention incentive to eligible employees.
compensation — 1
RSUs are subject to “cliff vesting” after three years, with 100%
of the grant vesting on the third anniversary of the grant
1. Amounts are not disclosed as they are below 1 and rounded to nearest million.
contingent upon the continued active employment of the eligible
The above sensitivities reflect the effect of changing one employee within the Company.
assumption at a time. Actual economic factors and conditions
415
 Financial statements

(millions of U.S. dollars, except share and per share data)

The maximum number of PSUs and RSUs available for grant other retention and performance based grants below the
during any given year is subject to the prior approval of the Executive Office level, were approved at the annual general
Company’s shareholders at the annual general meeting of meetings of shareholders on May 4, 2022 and May 2, 2023
shareholders. The 2022 and 2023 Caps for the number of respectively, at a maximum of 3,500,000 shares and 3,500,000
PSUs/RSUs that may be allocated to the Executive Office and shares, respectively.

Conditions of the 2023 grant were as follows:

Executive Office Executive Officers

l PSUs with a three year performance period l PSUs with a three year performance period

l Value at grant 120% of base salary for the Executive Chairman and
the CEO
l Vesting conditions: l Vesting conditions

Target Stretch Threshold Target Stretch

TSR vs. peer group (50%) / 100% vs. ≥120% vs. 100% vs. ≥120% vs.
TSR vs. peer group
EPS vs. peer group (20%) weighted weighted — weighted weighted
( 40%)
average average average average
2023
Grant Vesting percentage 100% 150% Vesting percentage — 100% 150%

ROCE (40%) 2/3 of target 100% of 4/3 of target

target
ESG (30%): H&S 10%, Climate 100% of target 120% of target Vesting percentage 50% 100% 150%
action 10% and D&I 10%
ESG (20%): H&S 10%, 100% of
Climate action 5% and — 120% of target
target
D&I 5%
Vesting percentage 100% 150% Vesting percentage — 100% 150%
l RSUs with a three year vesting period

Awards made in previous financial years which have not yet

reached the end of the vesting period including Executive Officers follows the Company's strategy. In
addition to the 2023 grant, the summary of outstanding plans as
ArcelorMittal's Equity Incentive Plan for senior management of December 31, 2023 is as follows:

Executive Office Executive Officers

l PSUs with a three year performance period l PSUs with a three year performance period

l Value at grant 100% of base salary for the Executive Chairman

and the CEO
l Vesting conditions: l Vesting conditions:

Threshold Target Threshold Target

TSR/EPS vs. peer group 100% median ≥120% median TSR/EPS vs. peer group 100% median ≥120% median
Vesting percentage 50% 100%
2020
Grant ≥Performance
Performance equal to Index + Gap to competition (where 100% target
TSR vs. S&P 500 equal to Index 2% p.a. applicable) 100% vesting
outperformance
Vesting percentage 50% 100% Vesting percentage 0% 100%

l RSUs with a three year vesting period

l RSUs with a one year vesting period

416
 Financial statements

(millions of U.S. dollars, except share and per share data)

Executive Office Executive Officers

l PSUs with a three year performance period l PSUs with a three year performance period

l Value at grant 100% of base salary for the Executive Chairman

and the CEO
l Vesting conditions: l Vesting conditions:

Threshold Target Target Stretch

TSR vs. peer group (50%) / 100% ≥120%
EPS vs. peer group (20%) 100% median ≥120% median TSR vs. peer group (40%) weighted weighted
average average
Vesting percentage 50% 100% Vesting percentage 100% 150%
2021
Grant
Gap to competition (40%) 100% of target 120% of target

ESG (30%) 100% of target Vesting percentage 100% 150%

ESG (20%) 100% of target 120% of target

Vesting percentage 100% 100% 150%

l RSUs with a three year vesting period

l RSUs with a two year vesting period

Executive Office Executive Officers

l PSUs with a three year performance period l PSUs with a three year performance period

l Value at grant 120% of base salary for the Executive Chairman

and the CEO
l Vesting conditions: l Vesting conditions:

Threshold Target Target Stretch

TSR vs. peer group (50%) / 100% 100% ≥120%
≥120% weighted
EPS vs. peer group (20%) weighted TSR vs. peer group (40%) weighted weighted
average
average average average
2022
Grant Vesting percentage 100% 150% Vesting percentage 100% 150%

Gap to competition (40%) 100% of target 120% of target

ESG (30%): H&S 10%,
Climate action 10% and D&I 100% of target 120% of target Vesting percentage 100% 150%
10%
ESG (20%): H&S 10%, Climate
action 5% and D&I 5% 100% of target 120% of target

Vesting percentage 100% 150% Vesting percentage 100% 150%

l RSUs with a three year vesting period

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 Financial statements

(millions of U.S. dollars, except share and per share data)

The following table summarizes the Company’s share unit plans outstanding December 31, 2023:

Number of shares issued as of December

At Grant date 31, 2022
Number of Number of Fair value Shares Shares Shares
Grant date Type of plan shares beneficiaries Maturity per share outstanding forfeited vested

December 8, 2023 RSU 1,269,300 958 December 8, 2026 25.58 1,269,300 — —

December 8, 2023 PSU 985,700 256 January 1, 2027 22.06 985,700 — —

December 8, 2023 Executive Office 141,973 2 January 1, 2027 20.49 141,973 — —

December 13, 2022 RSU 866,000 802 December 13, 2025 27.61 831,600 32,934 1,466

December 13, 2022 PSU 644,800 242 January 1, 2026 23.64 636,300 8,500 —

December 13, 2022 Executive Office 141,564 2 January 1, 2026 22.47 141,564 — —

December 16, 2021 RSU 729,250 658 December 16, 2024 32.66 656,900 63,659 8,691

December 16, 2021 PSU 575,400 244 January 1, 2025 28.29 529,150 46,250 —

December 16, 2021 Executive Office 109,143 2 January 1, 2025 27.20 109,143 — —

December 14, 2020 PSU 714,250 235 January 1, 2024 19.74 602,050 112,200 —

December 14, 2020 Executive Office 148,422 2 January 1, 2024 18.19 148,422 — —
$18.19 –
Total 6,325,802 $32.66 6,052,102 263,543 10,157

The compensation expense recognized for PSUs and RSUs was 39 and 38 for the years ended December 31, 2023 and 2022.

Share unit plan activity is summarized below as of and for each year ended December 31, 2023 and 2022:

RSUs PSUs and Executive Office

Number of Fair value per Number of Fair value per
shares share shares share
Outstanding, December 31, 2021 2,094,950 26.99 4,305,811 20.58
Granted 866,000 27.61 786,364 23.43
Exited (17,294) 26.21 (673,661) 20.84
Forfeited (106,506) 26.36 (725,018) 19.54
Outstanding, December 31, 2022 2,837,150 27.20 3,693,496 21.35
Granted 1,269,300 25.58 1,127,673 21.86
Exited (1,232,074) 24.05 (1,434,251) 18.16
Forfeited (116,576) 26.90 (92,616) 22.21
Outstanding, December 31, 2023 2,757,800 27.88 3,294,302 22.89

Note 22: Expenses related to the réviseur d’entreprises

agréé Note 23: Subsequent events
On March 12, 2024, ArcelorMittal announced that it has signed a
In 2023 and 2022, expenses related to the réviseur Share Purchase Agreement to acquire 65,243,206 shares,
d’entreprises agréé amounted to 10 and 8, respectively. representing approximately 28.4% equity interest in Vallourec,
for €14.64 per share from Funds managed by Apollo Global
Management, Inc., for a total consideration of approximately
€955 million. Transaction closing is subject to regulatory
approvals and is expected to close in the second half of 2024.

418
To the Shareholders of

ArcelorMittal Société Anonyme

24-26, Boulevard d’Avranches
L-1160 Luxembourg
Grand Duchy of Luxembourg

Independent auditor's report

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of ArcelorMittal S.A. (the “Company”), which comprise the statement of financial position as at
December 31, 2023, and the statement of operations and statement of other comprehensive income, the statement of changes in equity
and the statement of cash flows for the year then ended, and the notes to the financial statements, including material accounting policy
information.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at December
31, 2023, and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting
Standards (“IFRS”) as adopted by the European Union.

Basis for opinion

We conducted our audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 on the audit profession (“Law of 23
July 2016”) and with International Standards on Auditing (“ISAs”) as adopted for Luxembourg by the “Commission de Surveillance du
Secteur Financier” (“CSSF”). Our responsibilities under the EU Regulation No 537/2014, the Law of 23 July 2016 and ISAs as adopted
for Luxembourg by the CSSF are further described in the “Responsibilities of the “réviseur d’entreprises agréé” for the Audit of the
Financial Statements” section of our report. We are also independent of the Company in accordance with the International Code of
Ethics for Professional Accountants, including International Independence Standards, issued by the International Ethics Standards
Board for Accountants (“IESBA Code”) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant
to our audit of the financial statements, and have fulfilled our other ethical responsibilities under those ethical requirements. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements
of the current period. These matters were addressed in the context of the audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.

419
Impairment of Investments in Subsidiaries
Description of the Matter The balance of investments in subsidiaries as of December 31, 2023 was $46,556 million. As disclosed in
Note 7 to the financial statements, the Company recorded an impairment of investments in subsidiaries of
$13,122 million.

The Company’s evaluation of investments for impairment involves a comparison of the recoverable amount
to the carrying amount. As explained in Note 7 and Note 3 to the financial statements, the determination of
the recoverable amount of investments mainly depends on the estimation of value in use of the underlying
steel and mining operations, which are directly and indirectly held by the Company and its subsidiaries.
Key assumptions that had a significant impact on the Company’s estimate of the recoverable amounts of
investments in subsidiaries included future volumes of shipments, future selling prices, variable costs and
discount rate. Changes in these assumptions could have a significant impact on the recoverable amount of
investments in subsidiaries. There are significant judgments made by management to estimate these
assumptions, including as it relates to the impact of the war in Ukraine, both specifically on the Company’s
investments in Ukrainian operations, and more broadly, the impact of the war on the level of uncertainty
associated with these assumptions.

The estimate of the recoverable amount also considers the Company’s exposure to certain climate related
risks, which affect the estimates of the future cash flows. Where there is a legal obligation in terms of
carbon neutrality, the estimates of the future cash flows include the decarbonization capital expenditure
expected to be necessary to maintain the level of economic benefits expected to be generated by the
respective assets in the current condition. For the jurisdictions where there is no legal obligation for carbon
neutrality, the decarbonization related uncertainty was reflected in the risk premiums in the discount rates
applied to determine the present value of the estimated future cash flows.

Auditing the recoverable amounts of investments in subsidiaries was complex and required a high degree
of auditor judgement and an increased extent of effort, including the involvement of valuation specialists, as
the amount of investments in subsidiaries and the amount of impairment of investments are material to the
financial statements and due to the significant estimation uncertainty and subjective nature of the
assumptions used in the estimates, as described above.

How We Addressed the We obtained an understanding, evaluated the design and tested the operating effectiveness of controls
Matter in Our Audit over management’s valuation methodology and assumptions used for the estimates of future cash flows of
the underlying steel and mining operations, which are directly and indirectly held by the Company and its
subsidiaries. For example, we evaluated controls over the Company’s forecasting process used to develop
the estimated future cash flows and controls over management’s data included in the estimated future cash
flows.

We evaluated management’s ability to reasonably estimate future cash flows by comparing actual results to
management’s historical forecasts.

As it relates to future volume of shipments, future selling prices and variable costs, we compared
management’s estimates to available external third-party data regarding demand, selling prices and raw
material prices.

Specifically, as it relates to the estimate of the recoverable amount of investments which comprise
ArcelorMittal Kryvyi Rih CGU (representing the Company’s investments in Ukrainian operations), we
evaluated the reasonableness of management’s assumption as it relates to the timing for the end of war
and the length of the post-war recovery period, by independently developing a reasonable range of point
estimates and comparing to management’s estimate.

With the assistance of our valuation specialists, we evaluated the effects of climate-related matters,
including their impact on risk premiums and discount rates by considering, among other factors, current
legislation and regulations related to carbon emissions, as well as the Company’s ongoing initiatives to
transition to lower-carbon operations. Also, as part of our procedures, we compared expected
decarbonization capital expenditures against approved budgets and where applicable, costs incurred to
date.

With the assistance of our valuation specialists, we evaluated the discounted cash flows methodology and
assessed the discount rates used in the value in use estimates, by comparing to underlying source
information, testing the mathematical accuracy of the calculation, developing an independent range of
estimates and comparing the discount rate selected by management to our range.

We also evaluated the adequacy of the disclosures in Note 7 of the financial statements.

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Recoverability of Deferred Tax Assets (“DTAs”)

Description of the Matter The DTA balance as of December 31, 2023, was $8,720. As explained in Note 16 to the financial
statements, the Company has DTAs primarily related to tax losses carried forward. Under current tax law in
Luxembourg, tax losses accumulated before January 1, 2017, do not expire and are recoverable against
future taxable income. The assessment of the likelihood of future taxable profits being available, and
specifically the length of the forecast periods utilized, requires significant management’s judgment.

Auditing the recognition of ArcelorMittal S.A.’s DTA balances is subjective because the estimation requires
significant judgment, including the availability of future taxable income against which tax deductions
represented by the DTA can be offset. In addition, auditing the recognition of DTA balances that are
supported by the expectation of future taxable income arising beyond ArcelorMittal S.A.’s 5-year planning
horizon required significant auditor’s judgment and an increased effort.

How We Addressed the We obtained an understanding, evaluated the design and tested the operating effectiveness of controls
Matter in Our Audit over the Company’s assessment of the recoverability of deferred tax assets. For example, we tested
controls over management’s review of the significant assumptions used in estimating the projections of
future taxable income, including management’s analysis of the sensitivity of the length of the forecast
periods to change, based on other reasonably likely outcomes that would have a material effect on the
recoverability of DTAs.

To test the recoverability of DTAs, among other procedures, we compared the projections of future taxable
income with the actual results of prior periods and, separately, against other forecasted financial
information prepared by the Company, such as those described in the ‘Impairment of Investments in
Subsidiaries’ key audit matter above. We assessed the Company’s evaluation of the length of the forecast
periods to utilize the DTA by independently developing a reasonable range of point estimates and
comparing to management’s estimate. Additionally, we tested the completeness and accuracy of the
existing loan agreements used by management to forecast financial income, the primary input to future
taxable income, and we performed sensitivity analyses over this forecast. Where relevant and with the
assistance of our tax professionals, we also evaluated management’s proposed tax planning strategies,
and potential tax implications of material current year transactions.

We also evaluated the adequacy of the disclosures in Note 16 of the financial statements in respect of the
Company’s DTAs.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included in the
management report and the corporate governance statement, but does not include the financial statements and our report of "réviseur
d’entreprises agréé" thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report this fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors for the financial statements

The Board of Directors is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS as
adopted by the European Union, and for such internal control as the Board of Directors determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.

The Board of Directors is also responsible for presenting the financial statements in compliance with the requirements set out in the
Delegated Regulation 2019/815 on European Single Electronic Format, as amended (“ESEF Regulation”).

In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

421
Responsibilities of the “réviseur d’entreprises agréé” for the audit of the financial statements

The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue a report of the “réviseur d’entreprises agréé” that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with EU Regulation
N° 537/2014, the Law of 23 July 2016 and with the ISAs as adopted for Luxembourg by the CSSF will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 and with ISAs as adopted for Luxembourg
by the CSSF, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the Board of Directors.

• Conclude on the appropriateness of Board of Directors use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our report of the “réviseur d’entreprises agréé” to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
report of the “réviseur d’entreprises agréé”. However, future events or conditions may cause the Company to cease to continue as
a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Assess whether the financial statements have been prepared in all material respects in compliance with the requirements laid down
in the ESEF Regulation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate to them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our report
unless law or regulation precludes public disclosure about the matter.

Report on other legal and regulatory requirements

We have been appointed as “réviseur d’entreprises agréé” by the General Meeting of the Shareholders on May 2, 2023, and the
duration of our uninterrupted engagement, including previous renewals and reappointments, is two years.

The management report is consistent with the financial statements and has been prepared in accordance with applicable legal
requirements.

422
The corporate governance statement, included in the management report, is the responsibility of the Board of Directors. The information
required by article 68ter paragraph (1) letters c) and d) of the law of 19 December 2002 on the commercial and companies register and
on the accounting records and annual accounts of undertakings , as amended, is consistent with the financial statements and has been
prepared in accordance with applicable legal requirements.

We have checked the compliance of the financial statements of the Company as at December 31, 2023, with relevant statutory
requirements set out in the ESEF Regulation that are applicable to the financial statements. For the Company it relates to Financial
statements prepared in a valid xHTML format.

In our opinion, the financial statements of the Company as at December 31, 2023, identified as “mt-2023-12-31-en”, have been
prepared, in all material respects, in compliance with the requirements laid down in the ESEF Regulation.

We confirm that the audit opinion is consistent with the additional report to the audit committee or equivalent.

We confirm that the prohibited non-audit services referred to in EU Regulation N° 537/2014 were not provided and that we remained
independent of the Company in conducting the audit.

For Ernst & Young

Société anonyme
Cabinet de révision agréé

Olivier Lemaire, Réviseur d'entreprises agrée

Luxembourg March 27, 2024

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