ArcelorMittal SA Q2 FY2022 earnings call

• Acquisition of the Texas HBI plant is complete, achieving rated capacity with EBITDA run rating at $200 million, projecting normalized $130 million. - Acquisition of CSP in Brazil is a world-class facility with synergies and potential in the renewable power and hydrogen development region. - Returned 70% of $3.2 billion free cash flow to shareholders in 2022, and announced repurchase of 60 million shares. - Focus on growing and developing the business while returning capital to shareholders.

The acquisition of the Texas HBI plant and CSP in Brazil add $500 million to normalized EBITDA. Additionally, the organic pipeline of approved projects is expected to add $1.2 billion to normalized EBITDA. No detailed product segment financial performance by revenue contribution % is provided in the transcript.

• Acquisitions add $500 million to normalized EBITDA, organic projects add $1.2 billion. - Intention to continue returning capital to shareholders while growing the business. - Aim to maintain net debt level lower than $7 billion.

• Energy supply crisis in Europe could impact customer demand and operational disruption. - Cyclical nature of the steel industry posing uncertainties. - Uncertainties in China's steel market, including production cuts and margin levels.

Q: On M&A, why invest in external assets instead of buying own stock despite stock trading at less than 3x next year's numbers?

A: The Texas HBI plant offers benefits like lower tax rate, significant NOLs, and lower maintenance CapEx. CSP in Brazil is a world-class facility with strategic synergies.

Q: About CSP's past net losses, what's different now?

A: The company went through ramp-up phase; average EBITDA for last five years was about $320 million, expecting normalized EBITDA of $330 million.

Q: On supply discipline in Europe, rationale for outages?

A: Forecast of weaker demand in second half, so reducing output to avoid building inventory.

Q: On capital allocation and debt priorities?

A: Maintain net debt under $7 billion, 50-50 capital allocation between share buyback and M&A.