November 11, 2021 00:00 ET | Source: ArcelorMittal S.A. ArcelorMittal S.A.

Luxembourg, November 11, 2021 - ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading integrated steel and mining company, today announced results1,2 for the three-months and nine-months period ended September 30, 2021.

Financial highlights (on the basis of IFRS1,2):

Note: As previously announced, effective 2Q 2021, ArcelorMittal has amended its presentation of reportable segments to report the operations of AMMC and Liberia within the Mining segment. The results of each other mine are accounted for within the steel segments that it primarily supplies; as from 2Q 2021 onwards, ArcelorMittal Italia is deconsolidated and accounted for as a joint venture.

Commenting, Aditya Mittal, ArcelorMittal Chief Executive Officer, said:

“Our third quarter results were supported by the continuing strong price environment, resulting in the highest net income and lowest net debt since 2008. However, this success has been outweighed by our safety results. Improving the group’s safety performance is of the highest priority. We have already this year significantly strengthened our safety procedures and will be analyzing what further interventions can be introduced to ensure we eliminate all fatalities.

“At the beginning of the quarter, we announced an ambitious 2030 CO2 reduction target, backed by plans to invest in various decarbonization initiatives. It is our stated aim to lead the steel industry’s important role in ensuring the global economy achieves net zero. That is why we joined Breakthrough Energy Catalyst, are collaborating with the Science Based Targets initiative on a new methodology for the steel sector and are supporting the Industrial Deep Decarbonization Initiative’s campaign for green public procurement, which was launched at COP26 this week.

“Despite the volatility we continue to see as a result of the ongoing presence and repercussions of COVID-19, this has been a very strong year for ArcelorMittal. We have re-positioned our balance sheet, re-set ourselves for the transition to a low-carbon economy, we are growing strategically through high-quality, high-return projects and we are returning capital to shareholders. We are aware of the challenges but excited by the opportunities that will exist for steel in the coming years and beyond.”

“The outlook remains positive: underlying demand is expected to continue to improve; and, although marginally off the recent record highs, steel prices remain at elevated levels, something which will be reflected in the annual contracts for 2022.”

Sustainable development and safety performance

Health and safety - Own personnel and contractors lost time injury frequency rate

Protecting the health and wellbeing of employees remains the Company’s overarching priority with ongoing strict adherence to World Health Organization guidelines (in respect of COVID-19), and specific government guidelines have been followed and implemented.

Health and safety performance based on own personnel and contractors lost time injury frequency (LTIF) rate was 0.76x in the third quarter of 2021 ("3Q 2021") as compared to 0.89x for the second quarter of 2021 ("2Q 2021"). Prior period figures have not been recast for the ArcelorMittal USA disposal which took place in December 2020 and exclude ArcelorMittal Italia (which is now accounted for under the equity method) for all periods.

Health and safety performance in the first nine months of 2021 (“9M 2021”) was 0.80x as compared to 0.60x in the first nine months of 2020 (“9M 2020”).

The Company’s efforts to improve its health and safety record aim to strengthen the safety of its workforce with an absolute focus on eliminating fatalities. A change to the Company’s executive remuneration policy has been made to reflect this focus.

Own personnel and contractors - Frequency rate

Key sustainable development highlights during the quarter:

Analysis of results for 3Q 2021 versus 2Q 2021 and 3Q 2020 Total steel shipments in 3Q 2021 were 14.6Mt, 9.0% lower as compared with 16.1Mt in 2Q 2021 due to weaker demand (in particular automotive) as well as production constraints and order shipment delays which are expected to reverse in 4Q 2021. Adjusted for the change in scope (i.e. excluding the shipments of ArcelorMittal Italia11, deconsolidated as from April 14, 2021) steel shipments in 3Q 2021 decreased 8.4% as compared to 2Q 2021: ACIS -15.5%, NAFTA -12.0%, Europe -7.7% (scope adjusted) and Brazil -4.6%.

Adjusted for the change in scope (i.e. excluding the shipments of ArcelorMittal USA, sold to Cleveland Cliffs on December 9, 2020, and ArcelorMittal Italia11, deconsolidated as from April 14, 2021), steel shipments in 3Q 2021 increased 1.6% as compared to 3Q 2020: Brazil +16.6%; Europe +3.2% (scope adjusted); NAFTA +2.3% (scope adjusted); offset in part by ACIS -5.3%.

Sales in 3Q 2021 were $20.2 billion as compared to $19.3 billion for 2Q 2021 and $13.3 billion for 3Q 2020. As compared to 2Q 2021, the 4.6% increase in sales was primarily due to higher realized average steel selling prices (+15.7%) and higher mining revenue primarily due to higher shipment volumes (recovery in ArcelorMittal Mines Canada (AMMC7) following the resolution of labour strike action that had affected operations in 2Q 2021). Sales in 3Q 2021 were +52.5% higher as compared to 3Q 2020 primarily due to significantly higher average steel selling prices (+75.5%) as well as higher iron ore reference prices (+38.4%).

Depreciation for 3Q 2021 was $590 million as compared to $620 million for 2Q 2021, and significantly lower than $739 million in 3Q 2020 (due in part to the deconsolidation of ArcelorMittal Italia as from mid-April 2021 and sale of ArcelorMittal USA from December 2020). The FY 2021 depreciation expense is expected to be approximately $2.6 billion (based on current exchange rate).

There were no impairment items for 3Q 2021 and 2Q 2021. Net impairment gains in 3Q 2020 amounted to $556 million, consisting of the partial reversal of impairment charges recorded following the announced sale of ArcelorMittal USA ($660 million), and an impairment charge of $104 million related to the permanent closure of a blast furnace and steel plant in Krakow (Poland).

Exceptional items for 3Q 2021 of $123 million relate to expected costs for the decommissioning of the dam at the Serra Azul mine in Brazil. There were no exceptional items for 2Q 2021 or 3Q 2020.

Operating income for 3Q 2021 was $5.3 billion as compared to $4.4 billion in 2Q 2021 and $718 million in 3Q 2020 (impacted by the exceptional and impairment items as discussed above). The increased operating income for 3Q 2021 as compared to 2Q 2021 reflects a positive price-cost effect in the steel business which more than offset lower steel shipments, as well as improved Mining segment performance (driven by higher iron ore shipments offset in part by lower iron ore reference prices).

Income from associates, joint ventures and other investments for 3Q 2021 was $778 million as compared to $590 million for 2Q 2021 and $100 million in 3Q 2020. 3Q 2021 is significantly higher on account of improved results from Canadian, Calvert5, and Chinese investees12.

Net interest expense in 3Q 2021 was lower at $62 million as compared to $76 million in 2Q 2021 and $106 million in 3Q 2020, mainly due to savings following the repayment of bonds.

Foreign exchange and other net financing losses in 3Q 2021 were $339 million as compared to losses of $233 million in 2Q 2021 and $150 million in 3Q 2020. 3Q 2021 includes foreign exchange gain of $22 million (compared to $29 million loss in 2Q 2021 and $17m gain in 3Q 2020), and $68 million non-cash mark-to-market loss related to the mandatory convertible bonds call option (gain of $33 million in 2Q 2021). 3Q 2021 additionally includes i) an $82 million charge in connection with a revised valuation of the put option granted to Votorantim18; and ii) a $153 million loss (primarily consisting of interest and indexation charges, with a financial impact net of taxes and expected recoveries of less than $50 million) relating to a legal claim (currently on appeal) at ArcelorMittal Brasil from the Votorantim acquisition18. 2Q 2021 was impacted by early bond redemption premium expenses of $130 million.

ArcelorMittal recorded an income tax expense of $882 million in 3Q 2021 as compared to an income tax expense of $542 million (including deferred tax benefit of $226 million) in 2Q 2021 and $784 million (including deferred tax expense of $580 million) for 3Q 2020.

ArcelorMittal recorded net income for 3Q 2021 of $4,621 million ($4.17 basic earnings per common share), as compared to net income of $4,005 million for 2Q 2021 ($3.47 basic earnings per common share), and a net loss of $261 million for 3Q 2020 ($0.21 basic loss per common share).

NAFTA segment crude steel production decreased by 12.2% to 2.0Mt in 3Q 2021, as compared to 2.3Mt in 2Q 2021 primarily due to operational disruptions (including the impact of hurricane Ida) in Mexico. Adjusted for scope (excluding the impact of ArcelorMittal USA which was sold in December 2020), crude steel production declined -0.5% year on year.

Steel shipments in 3Q 2021 decreased by 12.0% to 2.3Mt, as compared to 2.6Mt in 2Q 2021 primarily due to lower production as explained above. Adjusted for scope, steel shipments were +2.3% higher year on year.

Sales in 3Q 2021 increased by 5.6% to $3.4 billion, as compared to $3.2 billion in 2Q 2021, primarily due to a 22.7% increase in average steel selling prices offset in part by a decrease in steel shipments (as discussed above).

Impairments for 3Q 2021 and 2Q 2021 were nil. 3Q 2020 operating income included a $660 million gain related to the partial reversal of impairments recorded in ArcelorMittal USA following the announced sale.

Operating income in 3Q 2021 was $925 million as compared to $675 million in 2Q 2021 and $629 million in 3Q 2020 which was positively impacted by impairment items noted above offset by the COVID-19 pandemic.

EBITDA in 3Q 2021 of $995 million was 33.3% higher as compared to $746 million in 2Q 2021, primarily due to a positive price-cost effect offset in part by lower shipment volumes as noted above. EBITDA in 3Q 2021 was higher as compared to $112 million in 3Q 2020 mainly due to a significant positive price-cost effect.

Brazil segment crude steel production decreased 1.2% to 3.1Mt in 3Q 2021 as compared to 3.2Mt in 2Q 2021, and was significantly higher as compared to 2.3Mt in 3Q 2020 when production was adapted to match the reduced demand levels driven by the COVID-19 pandemic.

Steel shipments in 3Q 2021 decreased by 4.6% to 2.8Mt as compared to 3.0Mt in 2Q 2021, primarily due to lower domestic demand not fully offset by export shipments due to order shipment delays at the end of the quarter. Steel shipments were 16.6% higher in 3Q 2021 as compared to 2.4Mt in 3Q 2020 due to higher flat products (+45.4%, driven by higher exports). 

Sales in 3Q 2021 increased by 10.5% to $3.6 billion as compared to $3.3 billion in 2Q 2021, following a 15.2% increase in average steel selling prices offset in part by lower steel shipments.

Operating income in 3Q 2021 of $1,164 million was higher as compared to $1,028 million in 2Q 2021 and $209 million in 3Q 2020 (impacted by COVID-19 pandemic). Operating income in 3Q 2021 was impacted by exceptional items of $123 million related to expected costs for the decommissioning of the dam at the Serra Azul mine in Brazil.

EBITDA in 3Q 2021 increased by 24.2% to $1,346 million as compared to $1,084 million in 2Q 2021, primarily due to a positive price-cost effect offset in part by lower steel shipments. EBITDA in 3Q 2021 was significantly higher as compared to $264 million in 3Q 2020 primarily due to a positive price-cost effect and higher steel shipments.

Europe segment crude steel production was 3.1% lower at 9.1Mt in 3Q 2021 as compared to 9.4Mt in 2Q 2021. Following the formation of a public-private partnership between Invitalia and ArcelorMittal Italia renamed Acciaierie d’Italia Holding (ArcelorMittal’s subsidiary party to the lease and purchase agreement for the ILVA business), ArcelorMittal has deconsolidated the assets and liabilities as from mid-April 2021. Adjusted for this change of scope, crude steel production decreased by 1.6% in 3Q 2021 as compared to 2Q 2021 and increased by 26.5% in 3Q 2021 as compared to 3Q 2020.

Steel shipments in 3Q 2021 decreased by 8.9% to 7.6Mt as compared to 8.3Mt in 2Q 2021 ( -7.7% on a scope adjusted basis) and lower as compared to 8.2Mt in 3Q 2020 (+3.2% on a scope adjusted basis). Steel shipments in 3Q 2021 were impacted by weaker demand, including lower automotive sales (driven by the late cancellation of orders), as well as logistic constraints partly linked to the severe floods in Europe in July 2021.

Sales in 3Q 2021 increased 5.2% to $11.2 billion, as compared to $10.7 billion in 2Q 2021, primarily due to 15.8% higher average selling prices (flat products +16.2% and long products +17.0%).

Impairment charges for 3Q 2021 and 2Q 2021 were nil. Impairment charges for 3Q 2020 were $104 million related to the closure of the blast furnace and the steel plant in Krakow (Poland).

Operating income in 3Q 2021 was $1,925 million as compared to $1,262 million in 2Q 2021 and an operating loss of $341 million in 3Q 2020 (impacted by the COVID-19 pandemic and impairments discussed above).

EBITDA in 3Q 2021 of $2,209 million was higher as compared to $1,578 million in 2Q 2021, primarily due to a positive price-cost effect offset in part by lower steel shipments. EBITDA in 3Q 2021 increased significantly as compared to $121 million in 3Q 2020 primarily due to a positive price-cost effect.

ACIS segment crude steel production in 3Q 2021 was 1.3% higher at 3.0Mt as compared to 2Q 2021. Crude steel production in 3Q 2021 was 18.5% higher as compared to 2.5Mt in 3Q 2020 primarily due to increased Ukrainian production during 3Q 2021 and COVID-19 related lockdown measures implemented in South Africa during the second and third quarter of 2020.

Steel shipments in 3Q 2021 decreased by 15.5% to 2.4Mt as compared to 2.8Mt as at 2Q 2021, mainly due to lower shipments in Kazakhstan driven by weaker market conditions in the CIS and export order shipment delays at the end of the quarter.

Sales in 3Q 2021 decreased by 12.6% to $2.4 billion as compared to $2.8 billion in 2Q 2021, primarily due to lower steel shipments (-15.5%) offset in part by higher average steel selling prices (+7.2%).

Operating income in 3Q 2021 was $808 million as compared to $923 million in 2Q 2021 and $68 million in 3Q 2020.

EBITDA of $920 million in 3Q 2021 was 10.9% lower as compared to $1,033 million in 2Q 2021, primarily due to lower steel shipments offset in part by a positive price-cost effect. EBITDA in 3Q 2021 was significantly higher as compared to $188 million in 3Q 2020, primarily due to positive price-cost effects offset in part by lower steel shipments. 

Given the sale of ArcelorMittal USA in December 2020, the Company is no longer presenting coal production and shipments in its earnings releases.

Iron ore production (AMMC and Liberia only) increased in 3Q 2021 by 40.7% to 6.8Mt as compared to 4.9Mt in 2Q 2021 and was 4.2% lower as compared to 3Q 2020. Higher production in 3Q 2021 was primarily due to the recovery to normal operations at AMMC following the impact of a 4 week labour strike action in 2Q 2021, offset in part by lower Liberia production due to the impact of locomotive incidents and heavy seasonal monsoon rains.

Iron ore shipments increased in 3Q 2021 by 53.5% as compared to 2Q 2021, primarily driven by AMMC as discussed above, and decreased by 3.7% as compared to 3Q 2020.

Operating income in 3Q 2021 increased to $741 million as compared to $508 million in 2Q 2021 and $330 million in 3Q 2020.

EBITDA in 3Q 2021 increased by 41.3% to $797 million as compared to $564 million in 2Q 2021, reflecting the positive impact of higher iron ore shipments (+53.5%) offset in part by lower iron ore reference prices (-18.5%) and higher freight costs. EBITDA in 3Q 2021 was significantly higher as compared to $387 million in 3Q 2020, primarily due to higher iron ore reference prices (+38.4%).

Joint ventures ArcelorMittal has investments in various joint ventures and associate entities globally. The Company considers the Calvert (50% equity interest) and AMNS India (60% equity interest) joint ventures to be of particular strategic importance, warranting more detailed disclosures to improve the understanding of their operational performance and value to the Company.

* 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.

** Shipments: all shipments including shipments of finished products processed on a hire work basis for ArcelorMittal group entities and third parties, including stainless steel products.

*** EBITDA of Calvert presented here on a 100% basis as a stand-alone business and in accordance with the Company's policy, applying the weighted average method of accounting for inventory.

Calvert’s hot strip mill production during 3Q 2021 totaled 1.2Mt as compared to 1.2Mt in 2Q 2021. Hot strip mill reliability and productivity continue to progress with monthly production record achieved in July (455Kt).

EBITDA*** during 3Q 2021 of $397 million (100% basis) was higher as compared to $270 million in 2Q 2021, largely reflecting the improved market prices.

Despite the onset of further lockdowns related to a second wave of the COVID-19 pandemic negatively impacting domestic demand, AMNS India was able to maintain robust production levels and utilize its coastal location and divert tonnes from the domestic to the export market. As a result, crude steel production in 3Q 2021 increased to 1.9Mt as compared to 1.8Mt 2Q 2021.

AMNS India EBITDA of $551 million (100% basis) was lower as compared to $607 million in 2Q 2021 primarily due to a negative price-cost impact due to higher iron ore and energy prices.

Net cash provided by operating activities for 3Q 2021 was $2,442 million as compared to $2,312 million in 2Q 2021 and $1,770 million in 3Q 2020. Net cash provided by operating activities in 3Q 2021 includes a working capital investment of $2,896 million due to higher pricing levels and production held in inventory due in part to lower than expected shipments, as compared to a working capital investment of $1,901 million in 2Q 2021 and a working capital release of $1,072 million in 3Q 2020.

Working capital needs in 2021 will be determined by the operating conditions towards the end of the year. Inventory volumes are expected to normalize in 4Q 2021, allowing working capital rotation days to return to levels consistent with the end of 2020 (scope adjusted). This normalization should support a working capital release in 4Q 2021 and support a further reduction in net debt.

Capex of $675 million in 3Q 2021 compares to $569 million in 2Q 2021 and $520 million in 3Q 2020. The FY 2021 capex guidance is maintained at $3.2 billion16.

Net cash provided by other investing activities in 3Q 2021 of $1,184 million as compared to $687 million in 2Q 2021 and $34 million in 3Q 2020. 3Q 2021 cash inflow primarily relates to $1.3 billion cash received from the redemption of preferred shares (the equivalent of 58.3 million common shares) of Cleveland Cliffs following a final review of the notice of the redemption, partially offset by other investments including those as part of the XCarbTM Innovation fund. 2Q 2021 cash inflow primarily relates to $0.7 billion cash received from the sale of 38.2 million Cleveland Cliffs common shares.

Net cash used in financing activities in 3Q 2021 was $2,740 million as compared to $3,780 million in 2Q 2021 and $401 million in 3Q 2020. In 3Q 2021, net cash used in financing activities includes an outflow of $0.8 billion primarily related to an early repayment of a Schuldschein loan of $0.5 billion and $0.2 billion from movement in commercial paper. In 2Q 2021, net cash used in financing activities includes an outflow of $2.2 billion primarily related to various EU and US bond repurchases. Net cash used in financing activities in 3Q 2020 primarily includes bond repayments.

As of September 30, 2021, ArcelorMittal had repurchased 42,299,224 shares for a total value of $1.4 billion out of the total $2.2 billion share buyback program that was announced on July 29, 2021. In addition, $323 million was paid during 3Q 2021 relating to part of the $750 million share buyback commenced on June 18, 2021 and was completed in early July 2021. In 2Q 2021, ArcelorMittal had repurchased 35,100,157 shares.

On November 11, 2021, based on the strong 3Q 2021 cash flow, the Company added $1 billion to its share buyback program under the authorization given by the annual general meeting of shareholders held on June 8, 2021. This brings the total advance as part of its prospective 2022 capital return to shareholders (to be funded from 2021 surplus cash flow under the capital return policy announced February 2021) to $2 billion. The new program (the “Program”) will be effective as from the date of the publication of the press release announcing the completion of the share buyback program announced on July 29, 2021 and the specific terms and conditions of the Program. The Program is expected to be completed by February 2022, subject to market conditions.

During 3Q 2021, the Company paid total dividends of $185 million of which $28 million was withholding taxes paid on dividends to ArcelorMittal shareholders in 2Q 2021 and $157 million mainly paid to the minority shareholders of ArcelorMittal Mines Canada7 (AMMC) and ArcelorMittal Kryvyi Rih which compares to $301 million in 2Q 2021 ($284 million was paid to ArcelorMittal shareholders and $17 million paid to minority shareholders), and $55 million to minority shareholders of AMMC and Bekaert (Brazil) in 3Q 2020.

Outflows from lease payments and other financing activities (net) were $46 million in 3Q 2021. Outflows from lease payments and other financing activities (net) were $250 million in 2Q 2021 ($63 million for 3Q 2020) including $199 million related to cash on deconsolidation of ArcelorMittal Italia.

Gross debt decreased by $1.0 billion to $8.2 billion as of September 30, 2021, as compared to $9.2 billion as of June 30, 2021, $12.3 billion as of December 31, 2020. As of September 30, 2021, net debt decreased to $3.9 billion as compared to $5.0 billion as of June 30, 2021, primarily driven by free cash flows.

As of September 30, 2021, the Company had liquidity of $9.9 billion, consisting of cash and cash equivalents of $4.4 billion ($4.2 billion as of June 30, 2021 and $6.0 billion as of December 31, 2020) and $5.5 billion of available credit lines8.

As of September 30, 2021, the average debt maturity was 6.0 years.

Based on year-to-date growth and the outlook for the remainder of the year, ArcelorMittal expects world ex-China apparent steel consumption (“ASC”) to grow within the +12% to +13% range presented at the half year results in July 2021.

Due to weakening real demand in China, primarily due to real estate, our China ASC estimate is weaker than previously forecast. ArcelorMittal now expects a slight contraction in Chinese apparent steel demand in 2021. However, the impact on ex-China steel markets is expected to be limited given that strict production constraints are expected to lead to lower Chinese net exports in the second half of 2021 overall as compared to the first half of 2021.

ArcelorMittal Condensed Consolidated Statement of Financial Position1

ArcelorMittal Condensed Consolidated Statement of Operations1

   ArcelorMittal Condensed Consolidated Statement of Cash flows1

Appendix 1: Product shipments by region(1)

Note: “Others and eliminations” are not presented in the table

Note: “Others” are not presented in the table

Appendix 2b: Capital expenditure projects

The following tables summarize the Company’s principal growth and optimization projects involving significant capex.

a) On September 28, 2017, ArcelorMittal announced a major $1.0 billion investment programme at its Mexican operations, which is focused on building ArcelorMittal Mexico’s downstream capabilities, sustaining the competitiveness of its mining operations and modernizing its existing asset base. The programme is designed to enable ArcelorMittal Mexico to meet the anticipated increased demand requirements from domestic customers, realize in full ArcelorMittal Mexico’s production capacity of 5.3Mt and significantly enhance the proportion of higher added-value products in its product mix. The main investment will be the construction of a new hot strip mill. Upon completion, the project will enable ArcelorMittal Mexico to produce c.2.5Mt of flat rolled steel, long steel c.1.5Mt and the remainder made up of semi-finished slabs. Coils from the new hot strip mill will be supplied to domestic, non-auto, general industry customers. The hot strip mill project commenced late 4Q 2017 and is expected to be completed at the end of 2021. In addition to the HSM, a push pull pickling line (PPPL) is to be constructed to capture additional domestic volume through hot rolled pickled and oiled products. The PPPL has a capacity of up to 0.75Mtpa, and the first pickled and oiled coils are expected to be produced by 2H 2024.

b) Investment in ArcelorMittal Dofasco (Canada) to modernize the hot strip mill. The project is to install two new state of the art coilers and runout tables to replace three end of life coilers. The strip cooling system will be upgraded and include innovative power cooling technology to improve product capability. The project is expected to be completed in 1H 2022.

c) Investment to replace #5 Hot-Dip Galvanizing Line Galvanneal coating capability with 160kt/year Aluminum Silicon (AluSi®) capability for the production of ArcelorMittal’s patented Usibor® Press Hardenable Steel for automotive structural and safety components. With the investment, ArcelorMittal Dofasco will become the only Canadian producer of AluSi® coated Usibor®. This investment complements additional strategic North America developments, including a new EAF and caster at Calvert in the US and a new hot strip mill in Mexico, and will allow to capitalize on increasing Auto Aluminized PHS demand in North America. The project is expected to be completed in 2022, with the first coil planned for 2H 2022.

d) In February 2021, ArcelorMittal announced the resumption of the Vega Do Sul expansion to provide an additional 700kt of cold-rolled annealed and galvanized capacity to serve the growing domestic market. The ~$0.35 billion investment programme to increase rolling capacity with construction of a new continuous annealing line and CGL combiline (and the option to add a ca. 100kt organic coating line to serve construction and appliance segments), and upon completion, will strengthen ArcelorMittal’s position in the fast growing automotive and industry markets through Advanced High Strength Steel products. The investments will look to facilitate a wide range of products and applications whilst further optimizing current ArcelorMittal Vega facilities to maximize site capacity and its competitiveness, considering comprehensive digital and automation technology. The project is expected to be completed in 4Q 2023.

e) ArcelorMittal Liberia has been operating a 5Mt direct shipping ore (DSO) since 2011 (Phase 1). In 2013, the Company had started construction of a Phase 2 project that envisaged the construction of 15Mtpa of concentrate sinter fines capacity and associated infrastructure; this project was then suspended due to the onset of Ebola in West Africa and the subsequent force-majeure declaration by the onsite contracting companies. ArcelorMittal has signed on September 10, 2021, with the Government of the Republic of Liberia an amendment to its Mineral Development Agreement which, upon ratification, will lead to the acceleration of construction of the 15Mtpa concentrator plant project ("phase 2 expansion"). Final detailed engineering is in progress, whilst site preparation and tenders for key construction contracts and remaining equipment are underway. Under this project, first concentrate product is expected in late 2023, ramping up to 15Mtpa thereafter. The capex required to conclude the project is expected to total approximately $0.8 billion as the project is effectively a brownfield opportunity given that more than 85% of the procurement and 60% of civil construction had already been completed. Under the agreement, the Company has further expansion opportunities up to 30Mtpa. Other users may be allowed to invest for additional rail capacity.

f) ArcelorMittal Mexico is investing ~$150 million to increase pellet feed production by 1Mtpa to 2.3Mtpa and improve concentrate grade in Las Truchas. This project will enable concentrate production to the blast furnace (BF) route (1.9Mtpa) and direct reduced iron (DRI) route (0.4Mtpa) for a total of 2.3Mtpa. Primary target is to supply ArcelorMittal Mexico steel operations with high quality feed. Production start up expected in 2H 2023.

g) Approximately $350 million investment at Serra Azul (Brazil) to construct facilities to produce 4.5Mtpa of DRI quality pellet feed to primarily supply ArcelorMittal Mexico steel operation. The project will allow to mine the compact itabirite iron ore. Project start up expected in 2H 2023.

h) The Monlevade upstream expansion project consisting of the sinter plant, blast furnace and meltshop is to recommence in 4Q 2021, following the anticipated improvement in Brazil domestic market. The project is expected to be completed in 2H 2024 with capex requirement of approximately $0.5 billion.

i) Although the Juiz de Fora rebar expansion was completed in 2015, the melt shop expansion project is currently on hold.

Appendix 3: Debt repayment schedule as of September 30, 2021

Appendix 4: Reconciliation of gross debt to net debt as of September 30, 2021

Appendix 5: Adjusted net income / (loss) as of September 30, 2021

Unless indicated otherwise, or the context otherwise requires, references in this earnings release report to the following terms have the meanings set out next to them below: Adjusted net income / (loss): refers to reported net income/(loss) less impairment items, exceptional items and derecognition of deferred tax assets on disposal of ArcelorMittal USA. Apparent steel consumption: calculated as the sum of production plus imports minus exports. Average steel selling prices: calculated as steel sales divided by steel shipments. Cash and cash equivalents and restricted funds: represents cash and cash equivalents, restricted cash, restricted funds and short-term investments. Capex: represents the purchase of property, plant and equipment and intangibles. Crude steel production: steel in the first solid state after melting, suitable for further processing or for sale. EBITDA: operating results plus depreciation, impairment items and exceptional items. EBITDA/tonne: calculated as EBITDA divided by total steel shipments. Exceptional items: income / (charges) relate to transactions that are significant, infrequent or unusual and are not representative of the normal course of business of the period. Foreign exchange and other net financing (loss): include foreign currency exchange impact, bank fees, interest on pensions, impairment of financial assets, revaluation of derivative instruments and other charges that cannot be directly linked to operating results. Free cash flow (FCF): refers to net cash provided by operating activities less capex less dividends paid to minority shareholders Gross debt: long-term debt and short-term debt (including that held as part of the liabilities held for sale). Impairment items: refers to impairment charges net of reversals. Liquidity: cash and cash equivalents and restricted funds plus available credit lines excluding back-up lines for the commercial paper program. LTIF: lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors. Mt: refers to million metric tonnes. Net debt: long-term debt and short-term debt less cash and cash equivalents and restricted funds (including those held as part of assets and liabilities held for sale). Net debt/LTM EBITDA: refers to Net debt divided by EBITDA (as used in the Company’s financial reporting) over the last twelve months. Net interest expense: includes interest expense less interest income On-going 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. Operating results: refers to operating income/(loss). Operating segments: NAFTA segment includes the Flat, Long and Tubular operations of Canada, Mexico; and also includes all Mexico mines (for 2020 and 2021 onwards) and Hibbing, Minorca, Princeton mines (for each periods of 2020, as they were included in the ArcelorMittal USA assets sold to Cleveland-Cliffs group in Dec 2020). The Brazil segment includes the Flat, Long and Tubular operations of Brazil and its neighboring countries including Argentina, Costa Rica, Venezuela; and also includes Andrade and Serra Azul captive iron ore mines. The Europe segment includes the Flat, Long and Tubular operations of the European business, as well as Downstream Solutions, and also includes Bosnia and Herzegovina capital iron ore mines. The ACIS segment includes the Flat, Long and Tubular operations of Kazakhstan, Ukraine and South Africa; and also includes the captive iron ore mines in Ukraine and iron ore and coal mines in Kazakhstan). Mining segment includes iron ore operations of ArcelorMittal Mines Canada and ArcelorMittal Liberia. Own iron ore production: includes total of all finished production of fines, concentrate, pellets and lumps and includes share of production. Price-cost effect: a lack of correlation or a lag in the corollary relationship between raw material and steel prices, which can either have a positive (i.e., increased spread between steel prices and raw material costs) or negative effect (i.e., a squeeze or decreased spread between steel prices and raw material costs). Iron ore reference prices: refers to iron ore prices for 62% Fe CFR China. Shipments: information at segment and group level eliminates intra-segment shipments (which are primarily between Flat/Long plants and Tubular plants) and inter-segment shipments respectively. Shipments of Downstream Solutions are excluded. Working capital change (working capital investment / release): Movement of change in working capital - trade accounts receivable plus inventories less trade and other accounts payable.

Third quarter 2021 earnings analyst conference call ArcelorMittal management will host a conference call for members of the investment community to present and comment on the three-month period ended September 30, 2021 on: Thursday November 11, 2021 at 9.30am US Eastern time; 14.30pm London time and 15.30pm CET.

Join the call via telephone using the participant code 7995055# or alternatively use the live audio webcast link.

https://interface.eviscomedia.com/player/1140/

Please visit the results section on our website to listen to the reply once the event has finished https://corporate.arcelormittal.com/investors/results

Forward-Looking Statements This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words “believe”, “expect”, “anticipate”, “target” or similar expressions. Although ArcelorMittal’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal’s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the “SEC”) made or to be made by ArcelorMittal, including ArcelorMittal’s latest Annual Report on Form 20-F on file with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

About ArcelorMittal ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 18 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks.

Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate. For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components people use in their everyday lives more energy efficient.

We are one of the world’s largest producers of iron ore. With a geographically diversified portfolio of iron ore assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow. In 2020, ArcelorMittal had revenues of $53.3 billion and crude steel production of 71.5 million metric tonnes, while own iron ore production reached 58.0 million metric tonnes.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

Enquiries ArcelorMittal investor relations: +44 207 543 1128; Retail: +44 207 543 1156; SRI: +44 207 543 1156 and Bonds/credit: +33 1 71 92 10 26.

ArcelorMittal corporate communications (E-mail: press@arcelormittal.com) +44 207 629 7988. Contact: Paul Weigh +44 203 214 2419