ArcelorMittal SA Q4 FY2023 earnings call

• Safety: Commissioned a third-party independent audit of safety practices with work streams on fatality prevention, process safety management, and safety governance.
• Growth Projects: Committed to high value-added lines in Brazil, a new electric furnace in the U.S., electrical steel capabilities in Europe, and iron ore projects in Brazil and Liberia, expected to add $1.8 billion to EBITDA.
• Capital Returns: Implemented share buyback programs, repurchasing one third of equity over the past three years with an ongoing buyback program.
• Financial Performance: 2023 EBITDA was $7.6 billion; net income was impacted by nonrecurring items but adjusted net income was nearly $5 billion.

In 2023, ArcelorMittal generated $7.6 billion in EBITDA. Sixty percent of the EBITDA is driven by assets in North America, India, and Brazil. Including Canadian mining operations, it accounts for almost 75% of the EBITDA.

• Growth projects are expected to add at least $1.8 billion to EBITDA.
• Confidence in growth in core markets with apparent demand growth in 2024.
• Continued share buybacks and upward revision of base dividend due to positive cash flow outlook.

• Geopolitical and economic challenges.
• Potential losses in segments like South Africa and Ukraine.
• Impact of imports on the European market.

Q: On new accounting practices and India JV net debt A: Aditya Mittal discussed inclusion of JV net income and the strong performance of the India JV, noting 60% of EBITDA is from relevant regions Q: On HBI growth in Europe and U.S.

A: Aditya Mittal talked about decarbonization strategies, global approach to DRI/EAF projects, and leveraging global asset base for low-cost decarbonized products Q: On India growth and Liberia project A: Aditya Mittal and Genuino Christino discussed India's capacity expansion plans to 15 million tons by 2026 and Liberia concentrator startup with ramp-up expected Q: On U.S. steel and SCIS A: Aditya Mittal commented on North America business strength and status of SCIS units, noting Kazakhstan is exited and Ukraine is minimizing losses Q: On share buyback and European pricing A: Aditya Mittal and Genuino Christino discussed buyback progress and European market dynamics, including destocking and raw material cost pressures Q: On North America growth and Brazilian market A: Aditya Mittal talked about North America asset portfolio strength and Brazilian market challenges with imports, but confidence in growth due to local projects Q: On strategic projects and JV conflict A: Genuino Christino and Aditya Mittal discussed project EBITDA assumptions based on conservative projections and JV management independence Q: On sustainable solutions and ADIA A: Aditya Mittal discussed sustainable solutions segment and ADIA impairment, noting ongoing discussions with government for asset viability Q: On Q1 expectations and European market A: Genuino Christino provided insights on Q1 performance, including benefits from higher prices and shipment recovery, and European market trends Q: On iron ore production and coal assets A: Genuino Christino and Aditya Mittal talked about iron ore production targets to return to 2022 levels and coal asset strategy, focusing on existing iron ore assets Q: On slab market in Europe A: Genuino Christino commented on European slab market dynamics, including Russian slab imports and position to capitalize on market changes