ArcelorMittal S.A.

Company Overview

Business Model: ArcelorMittal operates as one of the world’s leading integrated steel and mining companies. Its core value proposition lies in producing a broad range of high-quality finished and semi-finished steel products, including flat products (sheet, plate), long products (bars, rods, structural shapes), and pipes and tubes. The Company's mining operations produce iron ore lump, fines, concentrate, pellets, and sinter feed, providing a natural hedge against raw material volatility. ArcelorMittal primarily generates revenue by selling these products in local markets to customers in approximately 129 countries, serving the automotive, appliance, engineering, construction, and machinery industries.

Market Position: ArcelorMittal holds a leading market position as the largest steel producer in Europe and among the largest in the Americas, with a growing presence in Asia, including India through its joint venture AMNS India. The Company's annual achievable production capacity for crude steel was approximately 76.7 million tonnes for the year ended December 31, 2024, with steel shipments totaling 54.3 million tonnes. It is a market leader in automotive steel, holding approximately 16% worldwide market share, particularly in advanced high-strength steels (AHSS). ArcelorMittal is also one of the largest iron ore producers globally, with a portfolio of 9 operating units.

Recent Strategic Developments:

• Acciaierie d’Italia SpA (ADI) Situation: In February 2024, the Italian government placed ADI and its parent Acciaierie d’Italia Holding S.p.A. into extraordinary administration, stripping ArcelorMittal of its rights as an indirect shareholder of ADI and direct shareholder of ADIH, following investments exceeding €2 billion since 2018.
• Acquisitions: Acquired Italpannelli SRL in Italy and Italpannelli Iberica in Spain in May 2024, adding seven production lines for lightweight insulation panels with a capacity of 13 million square meters per year. In August 2024, ArcelorMittal acquired a 28.4% non-controlling equity interest in Vallourec for €960 million ($1,048 million).
• AMNS Calvert Joint Venture: In October 2024, ArcelorMittal entered an Equity Purchase Agreement with Nippon Steel Corporation (NSC) to purchase NSC’s 50% equity interest in the AMNS Calvert joint venture for $1 consideration, contingent on NSC completing its acquisition of US Steel. This agreement remains in place despite the U.S. President prohibiting NSC from acquiring US Steel in January 2025.
• Operational Optimization: Completed a three-year $1.4 billion value plan in 2024, yielding cumulative benefits from commercial initiatives, variable cost savings, and logistics improvements. The Longs Business of ArcelorMittal South Africa is undergoing a final wind-down into care and maintenance, anticipated to be completed in Q2 2025.
• Decarbonization and Growth Investments: Key initiatives include signing an MoU with Petrobras to assess low-carbon fuels (February 2024), plans for an advanced manufacturing facility for non-grain-oriented electrical steel (NOES) in Calvert, Alabama, with an estimated net capital expenditure of $0.9 billion (anticipated production H2 2027), and construction of an Electric Arc Furnace (EAF) for long products at its Gijón plant, Spain, with an investment of €213 million (expected Q1 2026). ArcelorMittal Brasil also signed contracts for two solar energy projects with a combined capacity of 465MW (August 2024).

Geographic Footprint: ArcelorMittal is incorporated in the Grand Duchy of Luxembourg and maintains its principal executive offices there. The Company has steel-making operations in 15 countries, including 36 integrated and mini-mill steel-making facilities. In 2024, crude steel production was geographically distributed with 38% in the Americas, 53% in Europe, and 9% in other countries (South Africa, Ukraine). Its global mining portfolio includes operations in Brazil, Bosnia, Canada, Liberia, Mexico, Ukraine, South Africa, and through joint ventures in India (AMNS India) and Canada (Baffinland).

Cross-Border Operations: ArcelorMittal manages a complex international structure, including numerous subsidiaries and significant investments in joint ventures and associates, totaling $11.4 billion as of December 31, 2024. Key joint ventures include AMNS India (60% interest), AMNS Calvert (with NSC), VAMA (with Hunan Valin), and Ventos de Santo Antonio (ArcelorMittal Brasil 55% stake). The Company's subsidiaries span North America (Canada, Mexico, USA), South America (Brazil, Argentina), Europe (France, Belgium, Spain, Poland, Germany, Luxembourg), Africa (Liberia, South Africa), and Asia (Ukraine, India). This global presence necessitates compliance with diverse regulatory frameworks and managing multi-jurisdictional operations.

Financial Performance

Revenue Analysis

Profitability Metrics (2024):

• Gross Margin: 9.27%
• Operating Margin: 5.30%
• Net Margin: 2.14%

Investment in Growth:

• R&D Expenditure: $285 million (0.46% of revenue) in 2024.
• Capital Expenditures: $4.4 billion in 2024. Expected 2025 Capital Expenditures: $4.5 billion to $5.0 billion, including $1.4 billion to $1.5 billion for strategic growth and $0.3 billion to $0.4 billion for decarbonization projects.
• Strategic Investments:
  • AMNS India: $7.7 billion in projected capital expenditure for expansion.
  • ArcelorMittal Calvert NOES facility: estimated net capital expenditure of $0.9 billion.
  • Gijón EAF: €213 million investment.
  • ArcelorMittal Brasil solar projects: 465MW combined capacity.
  • ArcelorMittal Liberia: $1.8 billion project to achieve 20 million tonnes/year production rate by end of 2025.
  • Acquisition of 28.4% interest in Vallourec for $1,048 million in 2024.

Currency Impact Analysis:

• Foreign exchange losses: $565 million in 2024, primarily due to U.S. dollar appreciation.
• Hedging strategies: ArcelorMittal hedges currency exposure, with €4.1 billion of euro-denominated debt designated as a hedge for €8.2 billion of euro-denominated investments as of December 31, 2024.
• Functional currency considerations: Major currency exposures include the euro, Brazilian real, Canadian dollar, Indian rupee, South African rand, Mexican peso, Polish zloty, Argentinian peso, and Ukrainian hryvnia against the U.S. dollar. Repatriation of funds from subsidiaries may be affected by tax and foreign exchange policies in Argentina, Brazil, China, South Africa, and Ukraine.

Business Segment Analysis

North America

Financial Performance:

• Revenue: $11.793 billion (2024), $12.978 billion (2023) (-9.1% YoY)
• Operating Income: $1.310 billion (2024), $1.917 billion (2023) (-31.7% YoY)
• Operating Margin: 11.11% (2024)
• Capital Expenditures: $410 million (2024) Key Growth Drivers: Crude steel production decreased by 13.6% to 7.5 million tonnes in 2024, primarily due to an illegal blockade at Mexico's steel plant and mine in Lazaro Cardenas, resulting in approximately 800,000 tonnes of foregone steel production and $0.2 billion lost operating income. Production normalized in Q4 2024. Product Portfolio: Flat products (slabs, hot rolled coil, cold rolled coil, coated steel products, plate) and long products (wire rod, sections, rebar, billets, blooms, wire drawing). Market Dynamics: Serves customers in the automotive, energy, construction, packaging, appliances, and distributors/processors sectors. Geographic Revenue Distribution: Production facilities are located in Canada and Mexico.

Brazil

Financial Performance:

• Revenue: $10.522 billion (2024), $13.163 billion (2023) (-20.1% YoY)
• Operating Income: $1.399 billion (2024), $1.461 billion (2023) (-4.2% YoY)
• Operating Margin: 13.30% (2024)
• Capital Expenditures: $879 million (2024) Key Growth Drivers: Crude steel production increased 4.0% to 14.5 million tonnes in 2024, primarily driven by the consolidation of ArcelorMittal Pecém from March 9, 2023. Product Portfolio: Flat products (slabs, hot rolled coil, cold rolled coil, coated steel) and long products (sections, wire rod, bar, rebars, billets, wire drawing). Market Dynamics: Key customer segments include construction, power generation, agribusiness, automotive, and household appliances. Geographic Revenue Distribution: Production facilities are located in Brazil and Argentina (Acindar Industria Argentina de Aceros S.A.).

Europe

Financial Performance:

• Revenue: $26.547 billion (2024), $31.695 billion (2023) (-16.2% YoY)
• Operating Income: $386 million (2024), $879 million (2023) (-56.1% YoY)
• Operating Margin: 1.45% (2024)
• Capital Expenditures: $1.359 billion (2024) Key Growth Drivers: Crude steel production increased 9.7% to 31.2 million tonnes in 2024, primarily due to higher production following restarts of blast furnaces (BF A in Gijón, BF 4 in Dunkirk) that were impacted by outages in 2023. Product Portfolio: Flat products (hot rolled coil, cold rolled coil, coated products, tinplate, plate, slab) and long products (sections, wire rod, rebar, billets, blooms, wire drawing). Market Dynamics: Serves customers in the automotive, general industry, and packaging sectors. Geographic Revenue Distribution: Production facilities include 8 integrated/mini-mill flat product sites in 5 countries and 10 integrated/mini-mill long product sites in 7 countries.

India and JVs

Financial Performance:

• Income from investments in associates, joint ventures and other investments: $779 million (2024), $1.184 billion (2023) (-34.2% YoY) Key Growth Drivers: 2024 income was impacted by lower contributions from AMNS India and Chinese investees, partly offset by Vallourec (Q4 2024). AMNS India production increased 1.1% to 7.5 million tonnes in 2024, with shipments increasing 9.4% to 7.9 million tonnes. AMNS Calvert HSM production decreased 3.4% to 4.5 million tonnes. Product Portfolio: AMNS India focuses on integrated flat carbon steel, value-added flat rolled products, and iron ore pellets. AMNS Calvert specializes in steel finishing, and VAMA in automotive steel finishing. Market Dynamics: AMNS India operates in a high-growth domestic market. VAMA targets the high-end automotive industry, including Chinese car manufacturers. AMNS Calvert serves automotive, construction, pipe and tube, service center, and appliance/HVAC sectors.

Sustainable Solutions

Financial Performance:

• Revenue: $9.088 billion (2024), $11.467 billion (2023) (-20.8% YoY)
• Operating Income: $57 million (2024), $225 million (2023) (-74.6% YoY)
• Operating Margin: 0.63% (2024)
• Capital Expenditures: $457 million (2024) Key Growth Drivers: 2024 operating income was impacted by lower activity and margins in steel downstream and construction, a lower margin order mix in the projects business, and $79 million in restructuring charges for distribution network optimization. Product Portfolio: Includes steel building systems (insulation, sandwich panels, profiles), customized steel solutions for large projects, special steel plates, renewable energy projects (AM Green Energy), scrap collection and recycling, European distribution, steel service centers, and tubular processing. Market Dynamics: This segment focuses on niche, capital-light businesses that support climate action, with high growth potential. It operates over 300 commercial and production sites across more than 60 countries.

Mining

Financial Performance:

• Revenue: $982 million (2024), $3.077 billion (2023) (-68.0% YoY)
• Operating Income: $770 million (2024), $1.144 billion (2023) (-32.7% YoY)
• Operating Margin: 78.41% (2024)
• Capital Expenditures: $1.022 billion (2024) Key Growth Drivers: 2024 operating income decreased due to an 8.3% lower iron ore reference price and higher freight costs. Iron ore production increased 7.7% to 27.9 million tonnes in 2024. Product Portfolio: Produces iron ore concentrate, lump, fines, and pellets. Geographic Revenue Distribution: Iron ore mines are located in Canada (ArcelorMittal Mining Canada G.P.) and Liberia (ArcelorMittal Liberia Ltd).

International Operations & Geographic Analysis

Revenue by Geography:

International Business Structure:

• Subsidiaries: ArcelorMittal operates through numerous indirectly owned subsidiaries globally, including ArcelorMittal Dofasco G.P. (Canada), ArcelorMittal México S.A. de C.V. (Mexico), ArcelorMittal Brasil S.A. (Brazil), Acindar Industria Argentina de Aceros S.A. (Argentina), ArcelorMittal France S.A.S. (France), ArcelorMittal Belgium N.V. (Belgium), ArcelorMittal Poland S.A. (Poland), ArcelorMittal Mining Canada G.P. (Canada), ArcelorMittal Liberia Ltd (Liberia), PJSC ArcelorMittal Kryvyi Rih (Ukraine), and ArcelorMittal South Africa Ltd.
• Joint Ventures: Key joint ventures include AMNS India (60% ArcelorMittal, 40% Nippon Steel Corporation), AMNS Calvert (with Nippon Steel Corporation), VAMA (with Hunan Valin), Ventos de Santo Antonio (ArcelorMittal Brasil 55%, Casa dos Ventos 45%), and Peña Colorada (50% ArcelorMittal, 50% Ternium S.A.).
• Associates: Significant associates include Baffinland (25.23% interest) and Vallourec (28.4% interest acquired in 2024).

Cross-Border Trade:

• Export Markets: Export sales of steel products to the U.S. market totaled $6.7 billion in 2024. ArcelorMittal Shipping arranged transportation for approximately 54.1 million tonnes of raw materials and 7.2 million tonnes of finished products in 2024.
• Import Dependencies: Principal international iron ore suppliers include Vale (Brazil), Luossavaara-Kirunavaara AB (Sweden), Baffinland Iron Mines Corporation (Canada), IOC (Rio Tinto Ltd.) (Canada), Samarco (Brazil), Anglo-American (Minas Rio in Brazil), and Metinvest (Ukraine). Principal coal suppliers include BHP Billiton Mitsubishi Alliance, Anglo Coal, Peabody, Glencore (Australia), Contura and Warrior (U.S.), Teck Coal (Canada), and JSW (Poland).
• Transfer Pricing: Inter-company transactions are subject to various tax and foreign exchange policies across jurisdictions, particularly in Argentina, Brazil, China, South Africa, and Ukraine, which can affect fund repatriation.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: ArcelorMittal returned $13.7 billion to shareholders from 2020-2024. In 2024, $1.3 billion was spent on share repurchases. As of December 31, 2024, 78 million shares (92% of the May 2023 program) were repurchased for $2.0 billion.
• Dividend Payments: A dividend of $0.50 per share was approved for 2024, totaling $393 million, paid in two installments.
• Future Capital Return Commitments: The Company has committed to allocating a minimum of 50% of free cash flow (after the base dividend) to share buybacks. The Board recommended increasing the base annual dividend to $0.55 per share for 2025.

Balance Sheet Position (as of December 31, 2024):

• Cash and Equivalents: $6.5 billion (including $84 million restricted cash).
• Total Debt: $11.6 billion (comprising $2.7 billion short-term and $8.8 billion long-term debt).
• Net Debt: $5.1 billion (up from $2.9 billion at December 31, 2023).
• Gearing (Net Debt/Total Equity): 10%.
• Credit Rating: Standard & Poor's: 'BBB-' investment grade (outlook positive). Moody’s: ‘Baa3’ investment grade (outlook positive).
• Debt Maturity Profile: The average debt maturity was 6.7 years in 2024. Key maturities include $2.7 billion in 2025, $1.3 billion in 2026, $1.9 billion in 2027, $0.7 billion in 2028, and $5.0 billion in 2029 and beyond. Long-term debt was 85% fixed rate and 15% variable rate.

Cash Flow Generation:

• Operating Cash Flow: $4.9 billion in 2024 (down from $7.6 billion in 2023). This included a marginal operating working capital release of $0.1 billion.
• Free Cash Flow: Approximately $0.5 billion in 2024 (Operating Cash Flow of $4.9 billion minus Capital Expenditures of $4.4 billion).
• Cash Conversion Metrics: The Company utilizes programs for sales without recourse of trade accounts receivable, with $4.4 billion of trade receivables sold as of December 31, 2024.

Currency Management:

• Cash holdings by major currencies: Net debt as of December 31, 2024, included exposures to EUR, USD, ARS, BRL, INR, and other currencies.
• Natural hedging through operational diversification: The Company's global footprint provides some natural hedging against currency fluctuations.
• Financial hedging instruments: ArcelorMittal uses derivative financial instruments (interest rate, currency, commodity swaps, spots, forwards, futures, and options) to manage exposure to fluctuations in interest rates, exchange rates, and commodity prices.

Operational Excellence

Production & Service Model: ArcelorMittal employs an integrated steel and mining production model. Steel is produced through both the basic oxygen furnace (BOF) process (43.5 million tonnes in 2024) and the electric arc furnace (EAF) process (14.4 million tonnes in 2024), with EAFs comprising 25% of global production. The Company also operates integrated mini-mills that produce their own direct reduced iron (DRI).

Global Supply Chain Architecture: Key Suppliers & Partners:

• Iron Ore Suppliers: Vale (Brazil), Luossavaara-Kirunavaara AB (Sweden), Baffinland Iron Mines Corporation (Canada), IOC (Rio Tinto Ltd.) (Canada), Samarco (Brazil), Anglo-American (Minas Rio in Brazil), Metinvest (Ukraine).
• Coal Suppliers: BHP Billiton Mitsubishi Alliance, Anglo Coal, Peabody, Glencore (Australia), Contura and Warrior (U.S.), Teck Coal (Canada), JSW (Poland).
• Shipping Partners: Global Chartering Ltd. (a joint venture with DryLog Ltd. for shipping).
• Technology Partners: Mitsubishi Heavy Industries, Ltd., BHP, Mitsubishi Development Pty Ltd (carbon capture), LanzaTech (Steelanol CCU), John Cockerill (electrolysis), Utility Global (hydrogen reactor).

Facility Network:

• Manufacturing: ArcelorMittal operates 37 Coke Oven Batteries (21.1M tonnes capacity), 19 Sinter Plants (73.6M tonnes capacity), 32 Blast Furnaces (60.9M tonnes capacity), 43 Basic Oxygen Furnaces (67.2M tonnes capacity), 11 DRI/HBI Plants (10.3M tonnes capacity), and 28 Electric Arc Furnaces (24.0M tonnes capacity).
• Research & Development: The Company maintains 14 research sites across 9 countries, focusing on new product development, process optimization, and decarbonization technologies.
• Distribution: An extensive network of service and distribution centers is present in the EU and South America. The Sustainable Solutions segment alone operates over 300 commercial and production sites in more than 60 countries.

Operational Metrics (2024):

• Total Iron Ore Production: 42.4 million tonnes.
• Safety: 13 fatalities in 13 events (6 employees, 7 contractors), with a Fatality Frequency Rate (FFR) of 0.03 and a Lost Time Injury Frequency Rate (LTIFR) of 0.70.
• Adjusted Group CO2e Intensity KPI (steel and mining): 1.75 tCO2e/tonne of steel, representing a 5.4% reduction since 2018.
• Adjusted Absolute CO2e Footprint (Scope 1+2): 101.9 million tonnes.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: ArcelorMittal employs regional sales forces and maintains direct customer relationships in local markets.
• Channel Partners: The Company leverages joint ventures and extensive distribution networks globally.
• Digital Platforms: While not explicitly detailed, the global reach implies utilization of various online and digital channels for market access.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: ArcelorMittal serves as a strategic partner to major Original Equipment Manufacturers (OEMs) globally, particularly in the automotive sector, where its engineers are embedded within customer operations.
• Customer Concentration: No single customer accounted for more than 5% of total sales in 2024, indicating a diversified customer base.

Regional Market Penetration:

• Global Market Share: ArcelorMittal is a market leader in steel, holding a leading market share of approximately 16% worldwide in automotive steel.
• Growth Markets: The Company maintains a strong presence in Europe and the Americas, with a growing footprint in Asia, including India, through strategic joint ventures.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics: The steel and mining industries are highly cyclical, influenced by global economic conditions, production capacity, and international trade policies. The global steel industry faces structural overcapacity, particularly in long products. China remains the largest global steel consumer and producer, with its finished steel exports increasing significantly in 2023 and H1 2024. Global steel production decreased by approximately 1% year-over-year in 2024, and global apparent steel consumption (ASC) also decreased by about 1% in 2024.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Steel Producers: Nippon Steel Corporation, Ternium S.A.
• Mining Companies: Kumba Iron Ore, Vale, Luossavaara-Kirunavaara AB, IOC (Rio Tinto Ltd.), Samarco, Anglo-American, Metinvest.
• Coal Suppliers: BHP Billiton Mitsubishi Alliance, Anglo Coal, Peabody, Glencore, Contura, Warrior, Teck Coal, JSW.

Regional Competitive Dynamics:

• U.S. Market: The U.S. administration implemented 25% tariffs on all steel imports effective March 12, 2025, impacting ArcelorMittal's export sales to the U.S. market, which were $6.7 billion in 2024.
• EU Market: EU Safeguard measures on steel imports have been extended until June 30, 2026. The EU has also extended anti-dumping measures on corrosion-resistant steel from China and opened new investigations into hot rolled coil (HRC) from various countries.
• Turkey: A 10.9% duty on HRC imports from ArcelorMittal has been in effect since July 2022, and a safeguard investigation into Wire Rod imports was initiated in 2023.
• Canada: Provisional safeguard measures (quotas, 25% tariff) on steel imports are in place. New anti-dumping measures have been implemented on rebar and wire rod, and a 25% Section 53 surtax on Chinese steel/aluminum was implemented in October 2024.

Risk Assessment Framework

Strategic & Market Risks

Global Market Dynamics:

• Prolonged Low Prices & Demand: The Company is exposed to risks from sustained low steel and iron ore prices, as well as low demand, which can be exacerbated by global economic downturns and structural overcapacity in the steel industry.
• Raw Material & Energy Price Volatility: Fluctuations in the prices of raw materials (e.g., iron ore, coal, scrap) and energy (e.g., natural gas, electricity) can significantly impact production costs and profitability.
• Unfair Trade Practices: The global steel market is affected by unfair trade practices, including dumping and subsidies, leading to trade restrictions and tariffs (e.g., U.S. Section 232 tariffs, EU safeguard measures).
• Technology Disruption: Competition from alternative materials and new steelmaking technologies poses a risk to market share and product relevance.

Operational & Execution Risks

Global Supply Chain Vulnerabilities:

• Supplier Dependency: Reliance on a limited number of key suppliers for critical raw materials (e.g., iron ore, coal) creates dependency risks.
• Regional Disruptions: Operations are exposed to disruptions from equipment failures, natural disasters, accidents, and geopolitical conflicts (e.g., the Russia-Ukraine conflict impacting PJSC ArcelorMittal Kryvyi Rih operations, which are running at reduced capacity).
• Trade Restrictions: Export controls, tariffs, and trade war impacts can disrupt supply chains and market access.
• Cybersecurity: Increasing intrusion attempts, data breaches, and data theft pose risks to operational continuity and sensitive information.

Financial & Regulatory Risks

Currency & Financial Risks:

• Foreign Exchange: Significant exposure to fluctuations in major currencies (euro, Brazilian real, Canadian dollar, Indian rupee, South African rand, Mexican peso, Polish zloty, Argentinian peso, Ukrainian hryvnia) against the U.S. dollar, impacting revenue, costs, and balance sheet translation.
• Interest Rate Risk: Exposure to interest rate fluctuations on its $11.6 billion total debt, particularly the variable rate portion.
• Credit & Liquidity: Total debt of $11.6 billion and net debt of $5.1 billion as of December 31, 2024, require robust cash flow generation and access to capital markets globally.
• Deferred Tax Assets: The Company holds $8.9 billion in deferred tax assets, requiring $39.3 billion in future taxable income for full realization.
• Pension Liabilities: Underfunding of pension plans represents a long-term financial obligation.

Regulatory & Compliance Risks:

• Multi-Jurisdictional Compliance: Operating in numerous countries exposes ArcelorMittal to a complex array of environmental, labor, and business regulations, including the EU's Industrial Emission Directive, Carbon Border Adjustment Mechanism (CBAM), and various national climate change laws.
• Trade Regulations: Compliance with export controls, sanctions, and anti-dumping/countervailing duty measures across multiple jurisdictions.
• Tax Regulations: Changes in international tax laws, interpretations, and transfer pricing regulations can increase income tax liabilities.
• CO2 Emission Obligations: A provision of $420 million for CO2 emission obligations as of December 31, 2024, highlights the financial impact of environmental regulations.

Geopolitical & External Risks

Country-Specific Risks:

• Political Risk: Operations in countries like Ukraine, Argentina, Turkey, and Mexico are subject to political instability, policy changes, and local conflicts (e.g., illegal blockade in Mexico).
• Economic Risk: Risks of currency devaluation, high inflation, and economic instability in operating markets (e.g., Argentinian peso devaluation).
• Regulatory Changes: Local law changes affecting operations, such as increased water royalty rates in Quebec, Canada, or new mining regulations in Mexico.

Innovation & Technology Leadership

Research & Development Focus: Global R&D Network: ArcelorMittal maintains 14 research sites across 9 countries, with R&D expenditure of $285 million in 2024.

• Innovation Pipeline: The Company launched 20 new products for sustainable lifestyles and 26 for sustainable construction/infrastructure/energy in 2024. Key developments include S-in motion® steel solutions (AHSS, MartInsite®), the Multi Part Integration® (MPI) concept for automotive, patented advanced steels for renewable energy (Magnelis®, Hyper®), and Hymatch® steel for H2-linepipes. ArcelorMittal has produced low-CO2 steels (up to 65% reduction) and commercialized over 50 new XCarb® Recycled and Renewably Produced (RRP) products in 2024, with over 200 more under development.
• Process Research: Focuses on by-products/circular economy (e.g., Sidercal® slag-based product), air pollution reduction (up to 50% NOx emissions reduction), and water management (smart pilot plant in Tubarão, Brazil). Decarbonization paths include Volteron™ low-temperature iron electrolysis, blast furnace decarbonization (top gas recycling, CO2 storage), and various carbon capture technologies. Advanced models optimize reheating furnace energy efficiency (5-10% reduction across 23 furnaces in 19 plants). The mining segment invests in decarbonization of pellets production and tailings facilities surveillance.
• Digital Transformation: Includes AI algorithms for product development, predictive maintenance, and production scheduling optimization, recognized with an International Data Corporation – Future Enterprises Award in 2024 for an AI solution at AMNS Calvert.

Intellectual Property Portfolio: ArcelorMittal holds a substantial intellectual property portfolio with over 14,000 patents and patent applications, encompassing more than 930 patent families. In 2024, 110 new inventions were protected.

Technology Partnerships:

• Strategic Alliances: Collaborations include Mitsubishi Heavy Industries, Ltd., BHP, Mitsubishi Development Pty Ltd (carbon capture), LanzaTech (Steelanol CCU), John Cockerill (electrolysis), Utility Global (hydrogen reactor), Petrobras (low-carbon fuels), Casa dos Ventos, and Atlas Renewable Energy (solar projects).
• Research Collaborations: The Company engages in academic partnerships and joint development programs to advance its technological capabilities.

Leadership & Governance

Executive Leadership Team

International Management Structure: The Executive Office, led by Executive Chairman Lakshmi N. Mittal and CEO Aditya Mittal, is supported by nine other Executive Officers, including regional leaders such as the CEO ArcelorMittal South America, CEO ArcelorMittal Europe, and CEO ArcelorMittal North America, indicating a decentralized yet coordinated management approach for its global operations.

Board Composition: The Board of Directors comprises nine directors, six of whom are independent. Mrs. Karyn Ovelmen serves as the Lead Independent Director. The Board has an Audit and Risk Committee, an Appointments, Remuneration and Corporate Governance Committee (ARCG Committee), and a Sustainability Committee, all chaired by independent non-executive directors. Executive remuneration is linked to climate objectives (decarbonization targets in long-term incentive plan since 2021) and safety performance (15% of Short-Term Incentive Plan and 10% of Long-Term Incentive Plan since 2021). The average age of board members was 61 years, and the average serving period was 10 years as of December 31, 2024.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework: Primary Regulatory Environments:

• EU: Subject to the revised Industrial Emission Directive (IED 2.0), EU Industrial Emissions Portal Regulation, Corporate Sustainability Due Diligence Directive (CS3D), and the EU-ETS, which mandates a 62% emissions reduction for covered sectors and includes the Carbon Border Adjustment Mechanism (CBAM) with payments starting in 2026.
• Argentina: Has a carbon neutrality goal by 2050, a Carbon Trade Market, and strategies for Hydrogen Economy Development.
• Brazil: New federal laws in 2024 address climate change adaptation, low-carbon hydrogen, national air quality, circular economy, and regulate the Brazilian Greenhouse Gas Emission Trading System.
• Canada: Quebec water royalty rates increased significantly from January 1, 2024. Carbon pricing (Ontario EPS) is set to rise to CAD$170/t CO2e by 2030.
• Liberia: The Environment Protection Agency (EPA) has heightened enforcement, and the Mineral Development Agreement (MDA) is valid until 2030.
• Mexico: New wastewater discharge standards are in effect, and National Mining Regulation reforms are ongoing. An emissions trading system (ETS) pilot is in place, with new rules expected in Q1 2025, alongside state green taxes on CO2 emissions.
• South Africa: Discussions are underway for a Phase 2 Carbon Tax with higher rates, and Draft Sectoral Emission Targets (SETs) have been published.
• Ukraine: The Law on "Integrated Prevention and Control of Industrial Pollution" (IPPC Law) was adopted in July 2024, effective August 8, 2025.

Cross-Border Compliance: ArcelorMittal maintains compliance programs for economic sanctions (e.g., Russia), anti-corruption (Code of Business Conduct, regular training), and anti-trust laws across its global operations.

International Tax Strategy: Income tax expense was $1.5 billion in 2024. The decrease in Luxembourg's statutory tax rate from 24.94% to 23.87% resulted in a $370 million tax expense from rate changes in 2024. The Company is subject to Pillar Two minimum tax, effective January 1, 2024, with $6 million of top-up tax included in 2024 current income tax expense.

Environmental & Social Impact

Global Sustainability Strategy: ArcelorMittal is committed to achieving net-zero emissions by 2050 and has a 2.1GW renewable energy portfolio.

Environmental Commitments:

• Climate Strategy: The Company has reduced total absolute emissions by 86 million tonnes CO2 (46%) since 2018. The Adjusted Group CO2e intensity KPI (steel and mining) decreased by 5.4% since 2018 to 1.75 tCO2e/tonne of steel in 2024. The Adjusted Europe CO2e intensity KPI (steel) reduced by 5.0% since 2018 to 1.62 tCO2e/tonne of steel in 2024.
• Renewable Energy: ArcelorMittal Brasil signed contracts for two solar energy projects with a combined capacity of 465MW, expected to meet 14% of current electricity requirements.

Regional Sustainability Initiatives:

• Supply Chain: The Company implements a tailings dam safety governance framework based on MAC, CDA, and GISTM standards, managing 27 tailings storage facilities globally.
• Brazil: The Serra Azul tailing dam evacuation plan, implemented in February 2019, has resulted in 942 indemnification agreements with affected families by December 31, 2024.

Social Impact by Region:

• Safety: In 2024, there were 13 fatalities (6 employees, 7 contractors), with a Lost Time Injury Frequency Rate (LTIFR) of 0.70. Executive remuneration is linked to safety performance.
• Community Investment: ArcelorMittal maintains a Joint Global Health and Safety Agreement with IndustriALL global trade union. In Ukraine, over 3,000 PJSC ArcelorMittal Kryvyi Rih employees were mobilized, and over 220 died or went missing in action in 2024, with the Company maintaining 18,000 jobs despite reduced production capacity.

Currency Management & Financial Strategy

Multi-Currency Operations: Currency Exposure (as of December 31, 2024):

Hedging Strategies:

• Transaction Hedging: ArcelorMittal uses derivative financial instruments, including currency swaps, spots, forwards, futures, and options, to manage short-term foreign exchange risk arising from payables and receivables in various currencies.
• Translation Hedging: As of December 31, 2024, €4.1 billion of euro-denominated debt was designated as a hedge for €8.2 billion of euro-denominated investments to mitigate balance sheet currency exposure.
• Economic Hedging: The Company's diversified global operational footprint provides a degree of natural economic hedging against long-term competitive currency exposures.
• Currency Impact: Foreign exchange losses of $565 million were recorded in 2024, primarily due to U.S. dollar appreciation. A 10% strengthening in the U.S. dollar would result in an income (loss) of $(276) million for derivative financial instruments.