Luxembourg, February 9, 2023 - 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-month and twelve-month periods ended December 31,
2022.
2022 Key highlights:
- Health and safety focus: Protecting the health
and wellbeing of the employees remains the Company’s overarching
priority; LTIF rate of 0.70x in FY 2022 vs. 0.79x in FY 20213
- Strong full year financial performance: FY
2022 operating income of $10.3bn4,5 (vs. $17.0bn4,5 in FY 2021); FY
2022 EBITDA of $14.2bn (vs. $19.4bn in FY 2021)
- Healthy net income: FY 2022 adjusted net
income6 of $10.6bn (vs. $14.9bn in FY 2021); FY 2022 net income
includes share of JV and associates net income of $1.3bn (vs.
$2.2bn in FY 2021)
- Strong FCF generation: The Company generated
$6.4bn free cash flow (FCF) in FY 2022 ($10.2bn net cash provided
by operating activities less $3.5bn capex and $0.3bn minority
dividends), broadly stable as compared to FY 202117. 4Q 2022 FCF of
$2.1bn ($3.6bn net cash provided by operating activities less
$1.5bn capex)
- Financial strength: The Company ended 2022
with record low net debt of $2.2bn (vs. $4.0bn at the end of 2021).
Gross debt of $11.7bn at the end of 2022, and cash and cash
equivalents of $9.4bn
- Share repurchases driving enhanced value:
Share buybacks reduced the fully diluted shares outstanding by 11%
in 2022, bringing the total reduction to 30% since end of September
20207. FY 2022 basic EPS of $10.21/sh vs. $13.53/sh for FY 2021. FY
2022 adjusted basic EPS6 of $11.65; last 12 months ROE8 of 20.3%
and book value per share9 increased to $62/sh
Priorities & Outlook:
- Global leadership on addressing climate
change: During 2022, the Company progressed its plans to
reduce the CO2e intensity of its global production by 25% by 2030
- Texas HBI plant acquired, securing high-quality metallics for
low-carbon steelmaking
- $0.6bn investment in 1GW renewable energy project in India
underway
- 1st smart carbon CCU project inaugurated in Ghent
(Belgium)
- 4 specialist scrap metal recyclers acquired in Europe
- 1st low-carbon emissions steelmaking project in Dofasco
(Canada)
- The Company is progressing on key European decarbonization
projects
- Delivering strategic growth in support of higher
sustainable returns
- Texas HBI acquisition and Brazil CSP acquisition (to be
completed in 1Q 2023) estimated to add ~$0.5bn to normalized
EBITDA16
- Expansion of the AMNS India Hazira plant to ~15Mt capacity by
2026 now underway
- Ramp up of the 2.5Mt Mexico hot strip mill is ongoing with
$0.1bn EBITDA run-rate achieved in 4Q 2022
- Strategic capex envelope of high return projects is now
$4.2bn19 to be spent between 2021-2024 (of which $0.9bn has been
spent to date) and estimated to add ~$1.3bn to normalized EBITDA16;
FY 2023 capex expected to be between $4.5bn-$5.0bn
- Building a track record of consistently returning
capital to shareholders:
- Share buy backs completed in 2022 represented 11% of diluted
equity, bringing total purchases since September 2020 to 30% at an
average share price of €24.34
- There remains (~$0.1bn) of post-dividend FCF to be returned to
shareholders as per the capital return policy, and this is expected
to be completed in 1Q 2023. The remaining amounts under the
existing buy back program will be allocated to the 2023 capital
return (targeting 50% of post-dividend FCF as per the policy).To
provide sufficient headroom for the 2023 capital return, the
Company intends to seek additional authority from shareholders to
repurchase shares at the 2023 AGM in May
- The Board proposes to increase the annual base dividend to
shareholders to $0.44/sh (to be paid in 2 equal instalments in June
2023 and December 2023), subject to the approval of shareholders at
the 2023 AGM
- Outlook
- World ex-China apparent steel consumption ("ASC") in 2023 is
expected to recover by +2% to +3% as compared to 2022; the Company
expects its steel shipments in 2023 to grow by ~5% vs. 202211
- The Company expects positive FCF generation in 2023; capex is
expected to increase to within the $4.5bn-$5.0bn range, interest
costs are expected to increase to approximately $0.4bn, and lower
cash taxes (including non-recurrence of timing related payments
made in 2022 of $0.7bn)
- The Company expects working capital will follow the normal
seasonal patterns (including an investment in 1Q 2023) but expects
a release for the full year 2023
Financial highlights (on the basis of
IFRS1,2):
|
(USDm) unless otherwise shown |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
Sales |
16,891 |
18,975 |
20,806 |
79,844 |
76,571 |
|
Operating (loss)income |
(306) |
1,651 |
4,558 |
10,272 |
16,976 |
|
Net income attributable to equity holders of the parent |
261 |
993 |
4,045 |
9,302 |
14,956 |
|
Basic earnings per common share (US$) |
0.30 |
1.11 |
3.93 |
10.21 |
13.53 |
|
|
|
|
|
|
|
|
Operating (loss)income /tonne (US$/t) |
(24) |
122 |
289 |
184 |
270 |
|
EBITDA |
1,258 |
2,660 |
5,052 |
14,161 |
19,404 |
|
EBITDA /tonne (US$/t) |
100 |
196 |
320 |
253 |
308 |
|
|
|
|
|
|
|
|
Crude steel production (Mt) |
13.2 |
14.9 |
16.5 |
59.0 |
69.1 |
|
Steel shipments (Mt) |
12.6 |
13.6 |
15.8 |
55.9 |
62.9 |
|
Total group iron ore production (Mt) |
10.7 |
10.6 |
13.4 |
45.3 |
50.9 |
|
Iron ore production (Mt) (AMMC and Liberia only) |
7.5 |
6.9 |
7.2 |
28.6 |
26.2 |
|
Iron ore shipment (Mt) (AMMC and Liberia only) |
6.9 |
6.9 |
7.1 |
28.0 |
26.0 |
|
|
|
|
|
|
|
|
Number of shares outstanding (issued shares less treasury shares)
(millions) |
805 |
816 |
911 |
805 |
911 |
Commenting, Aditya Mittal, ArcelorMittal
Chief Executive Officer, said:“Despite the challenges that
emerged as the year unfolded, our full year results demonstrate the
benefits of our strengthened asset portfolio and the improvements
we have made to our cost base in recent periods. This, alongside
the mitigatory actions we took in the second half of the year to
adapt production levels and optimize energy consumption, has added
resilience to our business.
Our delivery of consistently positive free cash flow and balance
sheet strength has allowed us to grow and develop the business,
capturing growth opportunities in faster growing markets while also
making good progress in our ambition to be a leader in low-carbon
steel production. The acquisition of Texas HBI helps us secure
high-quality metallics for low-carbon steelmaking. We celebrated
the commissioning of the European steel industry’s first carbon
capture and re-use project in Belgium. Our two low-carbon customer
products, XCarb® green steel certificates and XCarb® recycled and
renewably produced, continue to gain momentum with customers; and
the XCarb® Innovation Fund made a series of investments in
compelling new low-carbon technologies.
As we look ahead, evidence suggests that the customer destock we
saw in the second half of 2022 has peaked, hence providing support
to apparent steel consumption and steel spreads. Although
geopolitical uncertainty remains high, we remain confident in the
strength and resilience of ArcelorMittal, and in our ability to
successfully execute our strategy of growth, decarbonization and
sustainable returns through all aspects of the cycle."
Sustainable development and safety
performance
Health and safety - Own personnel and
contractors lost time injury frequency rate3,12
Protecting the health and wellbeing of employees is the
Company’s overarching priority, with a particular focus on becoming
a fatality free and severe injury free company.
Health and safety performance based on own personnel and
contractors lost time injury frequency ("LTIF") rate was 0.86x in
the fourth quarter of 2022 ("4Q 2022") as compared to 0.54x in the
third quarter of 2022 ("3Q 2022) and 0.74x in the fourth quarter of
20213 ("4Q 2021"). Health and safety performance in the twelve
months of 2022 (“12M 2022” or "FY 2022") was 0.70x as compared to
0.79x in the twelve months of 2021 (“12M 2021” or "FY 2021").
Own personnel and contractors - Frequency
rate
|
Lost time injury frequency rate |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
NAFTA |
0.18 |
0.27 |
0.25 |
0.25 |
0.40 |
|
Brazil |
0.14 |
0.05 |
0.30 |
0.10 |
0.22 |
|
Europe |
1.14 |
1.03 |
1.09 |
1.11 |
1.19 |
|
ACIS |
1.07 |
0.50 |
0.92 |
0.74 |
0.94 |
|
Mining |
0.61 |
0.30 |
— |
0.84 |
0.32 |
|
Total |
0.86 |
0.54 |
0.74 |
0.70 |
0.79 |
Sustainable development highlights – leading the
decarbonization of the steel
industry10:
- On January 27, 2023, ArcelorMittal
announced an investment of $36 million in Boston Metal. The
transaction is the Company’s largest single initial investment to
date through its XCarb® Innovation Fund. The fund, launched in
March 2021, targets investing in the best and brightest
technologies that hold the potential to play a meaningful role in
the decarbonization of the steel industry, a process ArcelorMittal
intends to lead.
- On December 29, 2022, ArcelorMittal
announced that it had signed an agreement to acquire Polish scrap
metal recycling business Zaklad Przerobu Złomu (“Złomex”). Złomex
operates scrap yards in Krakow and Warsaw which last year processed
and shipped almost 400,000 tonnes of ferrous scrap metal. Złomex
supplies a range of steel mills and foundries with well-established
relationships and has also been a long-standing supplier to
ArcelorMittal’s steel plants in Dąbrowa Górnicza and Warsaw. This
follows ArcelorMittal’s announcement on December 6, 2022, that it
has acquired Riwald Recycling (‘Riwald’), a state-of-the-art
ferrous scrap metal recycling business based in the Netherlands.
Riwald processed over 330,000 tonnes of ferrous scrap metal in
2021. ArcelorMittal has acquired four scrap metal businesses during
2022, as the Company continually seeks to enhance its ability to
source scrap steel, a key raw material which supports the Company’s
ability to reduce its carbon emissions and to achieve carbon
neutrality by 2050.
- On December 8, 2022, ArcelorMittal
successfully inaugurated its first carbon capture and utilization
(‘CCU’) project in Ghent (Belgium). The €200 million ‘Steelanol’
project is a first of its kind for the European steel industry.
Utilizing cutting edge carbon recycling technology developed by our
project partner LanzaTech, the CCU plant uses biocatalysts to
transform carbon-rich waste gases from the steelmaking process into
advanced bioethanol. The advanced bioethanol can then be used as a
building block to produce a variety of chemical products including
transport fuels, paints, clothing and even cosmetic perfume, hence
helping to support the decarbonization efforts of the chemical
sector. Once production reaches full capacity the Steelanol plant
will produce 80 million litres of advanced ethanol, almost half of
the total current advanced ethanol demand for fuel mixing in
Belgium. Carbalyst smart carbon technologies (Ghent) when combined
with 2 Torero reactors is expected to achieve 0.3Mt CO2
saving.
- The Company improved its gender diversity in 2022 with 16% of
women in management (vs. 14% in 2021) and remains on track to reach
the target of 25% by 2030.
Analysis of results for the twelve months ended December
31, 2022 versus results for the twelve months ended December 31,
2021Total steel shipments for 12M 2022 were 55.9 million
metric tonnes (Mt), a decrease of -11.2% as compared to 62.9Mt in
12M 2021. Steel shipments on a scope adjusted basis (i.e. excluding
the shipments of ArcelorMittal Italia, deconsolidated as from April
14, 2021) and excluding the impact of Ukraine, decreased by
-4.5%.
Sales for 12M 2022 increased by +4.3% to $79.8 billion as
compared with $76.6 billion for 12M 2021, primarily due to higher
average steel selling prices (+16.6%), offset in part by lower
steel shipments.
Depreciation was higher at $2.6 billion for 12M 2022 as compared
to $2.5 billion in 12M 2021. The Company expects 12M 2023
depreciation at $2.6 billion.
Impairment charges for 12M 2022 of $1.0 billion relate to
ArcelorMittal Kryviy Rih. In 4Q 2022, the Company recognized a
$1,026 million impairment charge related to property, plant and
equipment with respect to ArcelorMittal Kriviy Rih (Ukraine) in the
ACIS segment, where the ongoing conflict with Russia resulted in
low levels of production, sales and income and created significant
uncertainty about the timing and ability of operations to return to
a normal level of activity. Recent attacks against Ukrainian power
infrastructures caused additional operational issues for
ArcelorMittal Kriviy Rih and the increasing geopolitical tensions
resulted in a substantial increase in the discount rate applied by
the Company in its value in use calculation. Impairment gain for
12M 2021 amounted to $218 million following improved cash flow
projections in the context of decarbonization plans in Sestao
(Spain) (partially reversing the impairment recognized in
2015).
Exceptional items for 12M 2022 of $0.3 billion included $0.5
billion of non-cash inventory related provisions (recognized in 3Q
2022) to reflect the net realizable value of inventory under IFRS
with declining market prices in Europe, partially offset by a $0.1
billion purchase gain on the acquisition of the Hot Briquetted Iron
(‘HBI’) plant in Texas and a $0.1 billion gain following the
settlement of a claim by ArcelorMittal for a breach of a supply
contract. Exceptional items for 12M 2021 of $123 million related to
expected costs for the decommissioning of the dam at the Serra Azul
mine in Brazil.
Operating income for 12M 2022 of $10.3 billion was lower as
compared to 12M 2021 of $17.0 billion primarily driven by negative
price-cost effect, elevated energy costs, lower steel shipments,
negative translation effect and combined impairment costs and
exceptional items totaling $1.3 billion as discussed above.
Income from associates, joint ventures and other investments for
12M 2022 was $1.3 billion as compared to $2.2 billion for 12M 2021
primarily due to the lower contributions from AMNS India and AMNS
Calvert. 12M 2022 includes the annual dividend from Erdemir of $117
million (vs. $89 million received in 12M 2021).
Net interest expense in 12M 2022 of $213 million was lower as
compared to $278 million in 12M 2021 due to higher interest income.
The Company expects interest costs to increase to $0.4 billion in
12M 2023 due to higher interest rates.
Foreign exchange and other net financing losses were $121
million for 12M 2022 as compared to losses of $877 million for 12M
2021. Foreign exchange gain for 12M 2022 was $191 million as
compared to a loss of $155 million in 12M 2021. 12M 2021 included
charges of $191 million related to repurchases of bonds and MCNs,
as well as a $163 million loss (primarily consisting of interest
and indexation charges) relating to a legal claim at ArcelorMittal
Brasil from the Votorantim acquisition.
ArcelorMittal recorded an income tax expense of $1,717 million
for 12M 2022 (including $363 million deferred tax benefit) as
compared to $2,460 million for 12M 2021 (including $493 million
deferred tax benefit) reflecting overall lower taxable profits.
ArcelorMittal’s net income for 12M 2022 was $9.3 billion as
compared to $15.0 billion for 12M 2021. Adjusted net income6 for
12M 2022 excluding impairments charges and exceptional items, was
$10.6 billion as compared to $14.9 billion for 12M 2021.
ArcelorMittal’s basic earnings per common share for 12M 2022 was
$10.21 basic earnings per common share, as compared to $13.53 basic
earnings per common share for 12M 2021. Adjusted basic earnings per
common share (excluding impairment charges and exceptional items)6
for 12M 2022 was $11.65/sh as compared to $13.45/sh for 12M
2021.
Analysis of results for 4Q 2022 versus 3Q 2022 and 4Q
2021Total steel shipments in 4Q 2022 were 12.6Mt, -6.9%
lower as compared with 13.6Mt in 3Q 2022. Reflecting the
significantly lower apparent demand due to destocking, 4Q 2022
steel shipments were -19.9% lower as compared with 15.8Mt in 4Q
2021 (-14.7% excluding the impact of Ukraine).
Sales in 4Q 2022 were $16.9 billion as compared to $19.0 billion
for 3Q 2022 and $20.8 billion for 4Q 2021. As compared to 3Q 2022,
the -11.0% decrease in sales was primarily due to lower average
steel selling prices (-6.8%) and lower steel shipment volumes.
Sales in 4Q 2022 were -18.8% lower as compared to 4Q 2021 primarily
due to lower average steel selling prices (-4.3%) and lower steel
shipments (-19.9%).
Depreciation for 4Q 2022 was $636 million as compared to $628
million for 3Q 2022 and $712 million in 4Q 2021.
Impairment charges for 4Q 2022 of $1.0 billion relate to
ArcelorMittal Kryviy Rih as discussed above.
Exceptional items for 4Q 2022 of $0.1 billion relates to a gain
following the settlement of a claim by ArcelorMittal for a breach
of a supply contract. Exceptional items for 3Q 2022 of $0.4 billion
included $0.5 billion of non-cash inventory related provisions to
reflect the net realizable value of inventory under IFRS with
declining market prices in Europe, partially offset by a $0.1
billion purchase gain on the acquisition of a Hot Briquetted Iron
(‘HBI’) plant in Texas. Exceptional items for 4Q 2021 were nil.
Operating loss for 4Q 2022 of $0.3 billion reflected the
impairment charges as discussed above, negative price-cost and
lower volumes, and compares to an operating income of $1.7 billion
in 3Q 2022 and $4.6 billion for 4Q 2021.
Income from associates, joint ventures and other investments for
4Q 2022 was $121 million as compared to $59 million for 3Q 2022 and
$383 million in 4Q 2021. 4Q 2022 results improved as compared to 3Q
2022 with improved contributions from Chinese investees.
Net interest expense in 4Q 2022 was higher at $72 million as
compared to $37 million in 3Q 2022 and higher than $49 million in
4Q 2021, due to the issuance, at the end of 3Q 2022 and in 4Q 2022
of new notes bearing higher interest rates.
Foreign exchange and other net financing gain in 4Q 2022 was
$449 million as compared to a loss of $247 million in 3Q 2022 and
$111 million in 4Q 2021. 4Q 2022 includes foreign exchange gain of
$497 million (following the -9.4% depreciation of the US dollar vs.
the euro at the period end rates) as compared to a loss of $108
million in 3Q 2022 and a loss of $30 million in 4Q 2021.
Due to a lower taxable profit, ArcelorMittal recorded an income
tax benefit of $35 million (including deferred tax benefit of $126
million) in 4Q 2022, as compared to an income tax expense of $371
million (including deferred tax benefit of $23 million) in 3Q 2022.
Income tax expense in 4Q 2021 was $632 million (including deferred
tax benefit of $46 million).
ArcelorMittal recorded a net income in 4Q 2022 of $261 million
as compared to $993 million in 3Q 2022 and $4,045 million for 4Q
2021. Adjusted net income6 in 4Q 2022 was $1,189 million as
compared to $1,374 million in 3Q 2022 and $3,827 million for 4Q
2021.
ArcelorMittal's basic earnings per common share for 4Q 2022 was
lower at $0.30 as compared to $1.11 in 3Q 2022 and $3.93 in 4Q
2021. Adjusted basic earnings per common share6 for 4Q 2022 was
lower at $1.37 as compared to $1.54 in 3Q 2022 and $3.72 in 4Q
2021.
Analysis of segment
operations2
NAFTA
|
(USDm) unless otherwise shown |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
Sales |
2,923 |
3,438 |
3,329 |
13,774 |
12,530 |
|
Operating income |
331 |
616 |
939 |
2,818 |
2,800 |
|
Depreciation |
(127) |
(114) |
(113) |
(427) |
(325) |
|
Exceptional items |
98 |
92 |
— |
190 |
— |
|
EBITDA |
360 |
638 |
1,052 |
3,055 |
3,125 |
|
Crude steel production (kt) |
2,025 |
2,126 |
2,046 |
8,271 |
8,487 |
|
Steel shipments* (kt) |
2,338 |
2,339 |
2,205 |
9,586 |
9,586 |
|
Average steel selling price (US$/t) |
1,021 |
1,191 |
1,341 |
1,215 |
1,128 |
* NAFTA steel shipments include shipments sourced by NAFTA from
Group subsidiaries and sold to the Calvert JV that are eliminated
on consolidation.
NAFTA segment crude steel production decreased by -4.8% to 2.0Mt
in 4Q 2022, as compared to 2.1Mt in 3Q 2022, mainly due to planned
maintenance, and decreased by -1.0% as compared to 4Q 2021.
Steel shipments in 4Q 2022 were stable at 2.3Mt, as compared to
3Q 2022 and increased by +6.0% as compared to 4Q 2021.
Sales in 4Q 2022 decreased by -15.0% to $2.9 billion, as
compared to $3.4 billion in 3Q 2022 primarily on account of lower
average steel selling prices (-14.2%). Sales declined by -12.2% in
4Q 2022 as compared to 4Q 2021 primarily on account of lower
average steel selling prices (-23.8%) offset in part by higher
steel shipment volumes (+6.0%) and the impact of ArcelorMittal
Texas HBI acquisition.
Exceptional items for 4Q 2022 of $0.1 billion relates to a gain
following the settlement of a claim by ArcelorMittal for a breach
of a supply contract. Exceptional items for 3Q 2022 of $0.1 billion
related to the purchase gain on the acquisition of the HBI plant in
Texas.
Operating income in 4Q 2022 declined -46.4% to $331 million as
compared to $616 million in 3Q 2022 and -64.8% lower as compared to
$939 million in 4Q 2021.
EBITDA in 4Q 2022 of $360 million was -43.5% lower as compared
to $638 million in 3Q 2022, primarily due to a negative price-cost
effect. EBITDA in 4Q 2022 was -65.8% lower as compared to $1,052
million in 4Q 2021 mainly due to a negative price-cost effect
offset in part by higher volumes.
Brazil18
|
(USDm) unless otherwise shown |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
Sales |
2,894 |
3,486 |
3,452 |
13,732 |
12,856 |
|
Operating income |
302 |
598 |
892 |
2,775 |
3,798 |
|
Depreciation |
(60) |
(57) |
(60) |
(246) |
(228) |
|
Exceptional items |
— |
— |
— |
— |
(123) |
|
EBITDA |
362 |
655 |
952 |
3,021 |
4,149 |
|
Crude steel production (kt) |
2,783 |
2,969 |
3,117 |
11,877 |
12,413 |
|
Steel shipments (kt) |
2,639 |
2,837 |
3,034 |
11,516 |
11,695 |
|
Average steel selling price (US$/t) |
1,036 |
1,137 |
1,049 |
1,114 |
1,030 |
Brazil segment crude steel production decreased by -6.3% to
2.8Mt in 4Q 2022 as compared to 3.0Mt in 3Q 2022. 4Q 2022 crude
production was -10.7% lower as compared to 4Q 2021 due to lower
demand from export markets.
Steel shipments of 2.6Mt in 4Q 2022 were -7.0% lower as compared
to 2.8Mt at 3Q 2022, primarily due to seasonally weaker domestic
shipments and lower exports, and -13.0% lower as compared to 4Q
2021, primarily due to lower exports, with domestic shipments
stable year-on-year.
Sales in 4Q 2022 decreased by -17.0% to $2.9 billion as compared
to $3.5 billion in 3Q 2022, primarily due to an -8.9% decrease in
average steel selling prices and lower shipments. Sales in 4Q 2022
were -16.2% lower than $3.5 billion at 4Q 2021 primarily on account
of -13.0% decline in shipments (primarily exports) and lower
average steel selling prices (-1.2%).
Operating income in 4Q 2022 of $302 million was lower as
compared to $598 million in 3Q 2022 and $892 million in 4Q
2021.
EBITDA in 4Q 2022 decreased by -44.8% to $362 million as
compared to $655 million in 3Q 2022, primarily due to a negative
price-cost effect and lower steel shipments (-7.0%). EBITDA in 4Q
2022 was -62.0% lower than $952 million in 4Q 2021 primarily due to
negative price-cost effect and lower steel shipments (-13.0%).
Europe
|
(USDm) unless otherwise shown |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
Sales |
10,077 |
10,694 |
12,079 |
47,263 |
43,334 |
|
Operating (loss)income |
(10) |
158 |
1,886 |
4,292 |
5,672 |
|
Depreciation |
(316) |
(300) |
(353) |
(1,268) |
(1,252) |
|
Impairment items |
— |
— |
218 |
— |
218 |
|
Exceptional items |
— |
(473) |
— |
(473) |
— |
|
EBITDA |
306 |
931 |
2,021 |
6,033 |
6,706 |
|
Crude steel production (kt) |
6,956 |
7,998 |
8,621 |
31,904 |
36,795 |
|
Steel shipments (kt) |
6,802 |
7,079 |
8,325 |
30,182 |
33,182 |
|
Average steel selling price (US$/t) |
1,085 |
1,150 |
1,110 |
1,191 |
986 |
Europe segment crude steel production declined by -13.0% to
7.0Mt in 4Q 2022 as compared to 8.0Mt in 3Q 2022. Production was
-19.3% lower as compared to 8.6Mt in 4Q 2021 given curtailed
production in light of weaker apparent demand driven by destocking.
As apparent demand conditions are now showing signs of improvement,
the Company is gradually restarting capacity.
Steel shipments declined by -3.9% to 6.8Mt in 4Q 2022 as
compared to 7.1Mt in 3Q 2022 due to lower apparent demand severely
impacted by destocking. Shipments declined by -18.3% as compared to
8.3Mt in 4Q 2021 primarily due to weaker apparent demand.
Exceptional items for 3Q 2022 of $473 million related to
non-cash inventory provisions to reflect the net realizable value
of inventory under IFRS with declining market prices.
Sales in 4Q 2022 decreased by -5.8% to $10.1 billion, as
compared to $10.7 billion in 3Q 2022, due to a -3.9% reduction in
steel shipments and -5.7% lower average selling prices. Sales
declined by -16.6% as compared to 4Q 2021 primarily due to lower
steel shipments (-18.3%) and lower average steel selling prices
(-2.3%).
Operating loss in 4Q 2022 was $10 million as compared to an
operating income of $158 million in 3Q 2022 and $1,886 million in
4Q 2021.
EBITDA in 4Q 2022 of $306 million declined as compared to $931
million in 3Q 2022, due to the impacts of a negative
price-cost effect and reduced steel shipments on account of lower
demand, offset in part by easing of energy costs.EBITDA in 4Q 2022
decreased significantly as compared to $2,021 million in 4Q 2021
due to a negative price cost effect, lower shipments and negative
translation effect.
ACIS
|
(USDm) unless otherwise shown |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
Sales |
1,229 |
1,569 |
2,539 |
6,368 |
9,854 |
|
Operating (loss)income |
(1,198) |
(55) |
439 |
(930) |
2,705 |
|
Depreciation |
(65) |
(93) |
(118) |
(369) |
(450) |
| Impairment
items |
(1,026) |
— |
— |
(1,026) |
— |
|
EBITDA |
(107) |
38 |
557 |
465 |
3,155 |
|
Crude steel production (kt) |
1,394 |
1,842 |
2,694 |
6,949 |
11,366 |
|
Steel shipments (kt) |
1,414 |
1,675 |
2,597 |
6,378 |
10,360 |
|
Average steel selling price (US$/t) |
720 |
773 |
810 |
817 |
780 |
ACIS segment crude steel production in 4Q 2022 was -24.3% lower
at 1.4Mt as compared to 1.8Mt in 3Q 2022 mainly due to operational
issues and power availability in Kazakhstan, and planned
maintenance shutdowns in South Africa. Crude steel production in 4Q
2022 was -48.3% below 2.7Mt in 4Q 2021 primarily due to lower steel
production in Ukraine due to the ongoing war.
Steel shipments in 4Q 2022 decreased by -15.6% to 1.4Mt as
compared to 1.7Mt in 3Q 2022 primarily due to weaker Kazakhstan
shipments driven by the lower production as discussed above.
Shipments were -45.6% lower as compared to 2.6Mt in 4Q 2021,
primarily due to lower production in Ukraine.
Sales in 4Q 2022 decreased by -21.7% to $1.2 billion as compared
to $1.6 billion in 3Q 2022, primarily due to lower steel shipments
as above and -6.9% lower average steel selling prices.
Impairment costs for 4Q 2022 of $1.0 billion relate to the
ArcelorMittal Kryviy Rih’s assets4.
Operating loss in 4Q 2022 of $1,198 million compares to an
operating loss of $55 million in 3Q 2022 and operating income of
$439 million in 4Q 2021. Performance was negatively impacted by the
impairment as discussed above.
EBITDA loss of $107 million in 4Q 2022 as compared to EBITDA of
$38 million in 3Q 2022, was primarily due to lower shipments and
lower selling prices.
Mining
|
(USDm) unless otherwise shown |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
Sales |
716 |
742 |
824 |
3,396 |
4,045 |
|
Operating income |
255 |
254 |
343 |
1,483 |
2,371 |
|
Depreciation |
(57) |
(57) |
(57) |
(234) |
(228) |
|
EBITDA |
312 |
311 |
400 |
1,717 |
2,599 |
|
|
|
|
|
|
|
|
Iron ore production (Mt) |
7.5 |
6.9 |
7.2 |
28.6 |
26.2 |
|
Iron ore shipment (Mt) |
6.9 |
6.9 |
7.1 |
28.0 |
26.0 |
Note: Mining segment comprises iron ore operations of
ArcelorMittal Mines Canada and ArcelorMittal Liberia.
Iron ore production increased in 4Q 2022 by +7.8% to 7.5Mt as
compared to 6.9Mt in 3Q 2022 and was higher than 7.2Mt in 4Q 2021.
Higher iron ore production at AMMC13 and Liberia in 4Q 2022 as
compared to 3Q 2022 was due to the recovery following the adverse
impact of exceptionally heavy rains in Canada in 3Q 2022.
Despite higher production, iron ore shipments were stable at
6.9Mt in 4Q 2022 as compared to 3Q 2022 due to severe storms in
Canada during December 2022 impacting port operations. 4Q 2022 iron
ore shipments of 6.9Mt were -2.5% lower as compared to 7.1Mt at 4Q
2021.
Operating income in 4Q 2022 was broadly stable at $255 million
as compared 3Q 2022 and lower by -25.7% as compared to $343 million
in 4Q 2021.
EBITDA in 4Q 2022 of $312 million was broadly stable as compared
to $311 million in 3Q 2022, with the effect of lower iron ore
reference prices (-4.8%) and lower quality premia offset in part by
lower freight and other costs. EBITDA in 4Q 2022 was lower as
compared to $400 million in 4Q 2021, primarily due to lower iron
ore reference prices (-10.7%), lower shipments (-2.5%) and lower
quality premia partially offset by lower freight costs.
Joint venturesArcelorMittal 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.
Calvert
|
(USDm) unless otherwise shown |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
Production (100% basis) (kt)* |
1,014 |
1,055 |
1,068 |
4,320 |
4,802 |
| Steel shipments
(100% basis) (kt)** |
905 |
1,030 |
1,052 |
4,229 |
4,547 |
|
EBITDA (100% basis)*** |
(1) |
2 |
270 |
589 |
1,091 |
* 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: 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.
Following planned maintenance, Calvert’s hot strip mill ("HSM")
production during 4Q 2022 decreased by -3.9% to 1.0Mt, as compared
to 3Q 2022 and by -5.1% as compared to 1.1Mt in 4Q 2021.
Steel shipments in 4Q 2022 were -12.1% below 3Q 2022 due to
weaker demand.
EBITDA loss*** during 4Q 2022 of $1 million as compared to
EBITDA of $2 million in 3Q 2022 was primarily due to ongoing
negative price-cost effect resulted from the decline in sales
prices (for non-contract volumes), whilst inventory slab cost lags
the prevailing market prices. The impact of weighted average cost
of inventories versus replacement cost in 4Q 2022 was approximately
$0.2 billion.
AMNS India
|
(USDm) unless otherwise shown |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
Crude steel production (100% basis) (kt) |
1,624 |
1,663 |
1,847 |
6,685 |
7,393 |
| Steel shipments
(100% basis) (kt) |
1,593 |
1,634 |
1,731 |
6,470 |
6,914 |
|
EBITDA (100% basis) |
162 |
204 |
435 |
1,201 |
1,996 |
Crude steel production in 4Q 2022 decreased by -2.3% to 1.6Mt as
compared to 1.7Mt in 3Q 2022. Production was lower by -12.1% as
compared to 4Q 2021 due to lower exports following the imposition
of export duties on steel exports from India in 2Q 2022 (export
duties removed from the end of November 2022).
Steel shipments in 4Q 2022 decreased by -2.5% to 1.6Mt as
compared to 3Q 2022 and -8.0% lower as compared to 1.7Mt in 4Q 2021
due to the reasons discussed above.
EBITDA during 4Q 2022 of $162 million was lower as compared to
$204 million in 3Q 2022, due to lower steel shipments and lower
selling prices.
Liquidity and Capital
Resources
Net cash provided by operating activities for 4Q 2022 was $3,634
million as compared to $1,981 million in 3Q 2022 and $4,154 million
in 4Q 2021. Net cash provided by operating activities in 4Q 2022
includes a working capital release of $2,412 million as compared to
a working capital investment of $580 million in 3Q 2022 and $22
million release in 4Q 2021. 4Q 2022 working capital release (as
compared to 3Q 2022) was driven primarily by lower accounts
receivable (due to lower prices and lower volumes), and lower
inventories (due to the impact of lower production costs and
reduced inventory volumes).
Capex in 4Q 2022 increased to $1,500 million as compared with
$784 million in 3Q 2022 as projects gained momentum following
earlier impacts from project mobilization/contractor delays. Capex
of $3.5 billion in 12M 2022 is in line with the latest guidance and
compares with $3.0 billion in 12M 2021. In line with the rate of
spending in 2H 2022 capex in 2023 is expected in the range of
$4.5-5.0 billion. Decarbonization capex is expected to increase to
$0.4 billion in 2023 (vs. $0.2 billion in 2022). The previously
announced strategic pipeline (2021-2024) has now increased by $0.5
billion to $4.2 billion19, with the addition of a new production
unit for electrical steels at the Mardyck site in the north of
France, with $0.9 billion having been spent as of the end of 2022.
The Company expects strategic projects capex in 2023 between
$1.3-$1.6 billion as compared to $0.7 billion in 2022 largely due
to catch up on previously announced projects. Capex outside of
strategic capex and decarbonization projects including general
maintenance capex is expected to be $2.8-$3.0 billion in 2023 (vs.
$2.6 billion in 2022).
Net cash used in other investing activities in 4Q 2022 was $33
million primarily related to the $25 million investment in nuclear
innovation company TerraPower. Net cash used in other investing
activities in 3Q 2022 was $19 million mainly related to investment
in Form Energy Inc. 4Q 2021 cash outflow of $90 million primarily
related to a $45 million investment through the XCarb™ Innovation
Fund10 (including $30 million for the carbon recycling company,
LanzaTech).
Net cash provided by financing activities in 4Q 2022 of $1,578
million as compared to net cash used in financing activities in 3Q
2022 of $219 million and $2,990 million in 4Q 2021. On November 21,
2022, ArcelorMittal priced new USD notes issuance with two
tranches: a 5-year, $1.2 billion tranche at 6.55% and a 10-year,
$1.0 billion tranche at 6.80% (both offerings occurred on November
29, 2022). In 4Q 2022, the Company repurchased 10.3 million shares
for a total value of $225 million ($288 million including $63
million related to 3Q 2022 purchases settled early October 2022) as
part of its previously announced share buy back program and paid
minority dividends of $29 million mainly to minority shareholders
of Belgo Bekaert Arames (Brazil). In 3Q 2022, ArcelorMittal raised
a €600 million 4 year note which was offset by the repurchase of 31
million shares for a total value of $712 million (of which $649
million was paid by the end of September 2022 and $63 million
settled in early October 2022) and paid minority dividends of $124
million mainly to minority shareholders of AMMC.
Gross debt increased to $11.7 billion as of December 31, 2022,
as compared to $9.0 billion as of September 30, 2022, and $8.4
billion as of December 31, 2021. Net debt decreased by $1.7 billion
to $2.2 billion as of December 31, 2022, as compared to $3.9
billion as of September 30, 2022, and decreased by $1.8 billion
from $4.0 billion as of December 31, 2021.
As of December 31, 2022, the Company had liquidity of $14.9
billion as compared to $10.6 billion as of September 30, 2022,
consisting of cash and cash equivalents of $9.4 billion (as of
September 30, 2022, cash and cash equivalents was $5.1 billion) and
$5.5 billion of available credit lines14. As of December 31, 2022,
the average debt maturity was 5.7 years.
Recent developments
- On July 28, 2022,
ArcelorMittal announced it had signed an agreement with the
shareholders of CSP to acquire CSP for an enterprise value of
approximately $2.2 billion. Antitrust final clearance has now been
obtained and transaction is expected to close in 1Q 2023. CSP is a
world-class operation, producing high-quality slab at a globally
competitive cost.
Value plan
In 2022, the Company announced a new 3-year $1.5 billion value
plan focused on creating value through well-defined commercial and
operational initiatives. The plan did not include the impact of
strategic projects. The plan included commercial initiatives,
including volume/mix improvements and operational improvements
(primarily in variable costs). The plan aimed to protect the EBITDA
potential of the business from rising inflationary pressures;
improving its relative competitive position vis-a-vis its peers and
supporting sustainably higher profits.
The Value plan has progressed during 2022 and is on track.
Several actions were taken in 2022 which yielded improvement of
$0.4 billion (~25% of the plan). Examples of the initiatives
undertaken are as follows:
- Commercial: Projects
to improve cost to manufacture value-added products; and increase
higher added value mix (e.g. Magnelis products and Advanced High
Strength Steels)
- Operational:
Improvement of fuel rates in blast furnaces; substitution of
purchased coke through improved performance of coke oven batteries;
purchasing gains through local sourcing initiatives
With the ongoing focus to execute and deliver the value plan
initiatives the Company anticipates improvements >$1.1 billion
over the next 2 years.
Capital return
In line with the Company's capital return policy, the Board
proposes to increase the annual base dividend to shareholders to
$0.44/sh (to be paid in 2 equal instalments in June 2023 and
December 2023), subject to the approval of shareholders at the AGM
in May 2023.
Share buybacks will continue as per the Company's defined policy
to return 50% of post-dividend FCF to shareholders. The Company
will request the customary authorizations from shareholders at the
AGM in May 2023 to continue to repurchase shares.
Financial calendar for 2023
- General meeting of
shareholders: May 2, 2023: ArcelorMittal Annual General Meeting
("AGM")
- Earnings results
announcements: May 4, 2023 Earnings release 1Q 2023; July 27, 2023:
Earnings release 2Q and half year 2023; November 9, 2023: Earnings
release 3Q and nine-months 2023
Outlook
As anticipated, apparent demand conditions are now showing signs
of improvement as the destocking phase reaches maturity. Despite
continued headwinds to real demand, World ex-China apparent steel
consumption ("ASC") in 2023 is expected to recover by +2.0% to
+3.0% as compared to 2022 (when global ASC is estimated to have
contracted by -2.0% to -2.5%), due to non-recurrence of the
destocking effects that weighed on demand, particularly in the
final months of 2022. The Company expects its steel shipments in
2023 to grow by ~5% vs. 202211.
ArcelorMittal expects the following demand dynamics by key
region:
- In the US, although
real demand growth is expected to remain lackluster due to the
lagged impact of interest rates rises, the anticipated end to
destocking is expected to lead to an increase in apparent steel
consumption of +1.5% to +3.5% in 2023;
- In Europe, the
impact of significant destocking drove a contraction of apparent
consumption by -7.0% to -7.5% in 2022. As a result, whilst the
Company does assume a marginal decline in real demand in 2023,
apparent demand is expected to recover by +0.5% to +2.5% in 2023.
This would represent a significantly higher level of apparent
demand as compared to the peak of the destocking cycle in 4Q
2022;
- In Brazil, the
Company expects a gradual rebound in real steel consumption in 2023
and slowdown in the destock to support an ASC growth of +3.0% to
+5.0%;
- In India, the
Company expects another strong year with apparent steel consumption
growth in the range of +6.0% to +8.0%;
- In the CIS region
(which includes Commonwealth of Independent States and Ukraine),
whilst the Company forecasts some improvement in steel consumption
in Ukraine, this is more than offset by the expected decline in
Russian steel consumption due to the lagged impact of ongoing
sanctions, particularly lower oil and gas revenue, leading to an
expected decline in ASC of 0.0% to -2.0% for the region; and
- In China, economic
growth is expected to rebound strongly in 2023 as COVID-19
restrictions are now lifted. However, with continued weakness
expected in real estate during the year, steel consumption is
expected to stabilize in 2023 (+1.0% to -1.0%) with potential
upside dependent on government infrastructure stimulus.
The Company expects working capital will follow the normal
seasonal patterns (including an investment in 1Q 2023) but expects
a release for the full year 2023.
The Company expects positive FCF generation in 2023; capex is
expected to increase to within the $4.5-$5.0 billion range,
interest costs are expected to increase to approximately $0.4
billion, and lower cash taxes (including non-recurrence of timing
related payments made in 2022 of $0.7 billion).
ArcelorMittal Condensed Consolidated Statement of
Financial Position1
|
In millions of U.S. dollars |
Dec 31,2022 |
Sept 30,2022 |
Dec 31,2021 |
|
ASSETS |
|
|
|
| Cash and
cash equivalents |
9,414 |
5,067 |
4,371 |
| Trade
accounts receivable and other |
3,839 |
4,677 |
5,143 |
|
Inventories |
20,087 |
20,566 |
19,858 |
| Prepaid expenses and other current
assets |
3,778 |
6,114 |
5,567 |
|
Total Current Assets |
37,118 |
36,424 |
34,939 |
|
|
|
|
|
| Goodwill
and intangible assets |
4,903 |
4,035 |
4,425 |
|
Property, plant and equipment |
30,167 |
28,515 |
30,075 |
|
Investments in associates and joint ventures |
10,765 |
10,742 |
10,319 |
| Deferred
tax assets |
8,554 |
8,033 |
8,147 |
| Other
assets15 |
3,040 |
3,467 |
2,607 |
|
Total Assets |
94,547 |
91,216 |
90,512 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
Short-term debt and current portion of long-term debt |
2,583 |
2,580 |
1,913 |
| Trade
accounts payable and other |
13,532 |
13,384 |
15,093 |
| Accrued expenses and other current
liabilities |
6,283 |
6,556 |
7,161 |
|
Total Current Liabilities |
22,398 |
22,520 |
24,167 |
|
|
|
|
|
|
Long-term debt, net of current portion |
9,067 |
6,414 |
6,488 |
| Deferred
tax liabilities |
2,666 |
2,394 |
2,369 |
| Other
long-term liabilities |
4,826 |
5,971 |
6,144 |
|
Total Liabilities |
38,957 |
37,299 |
39,168 |
|
|
|
|
|
| Equity
attributable to the equity holders of the parent |
53,152 |
51,563 |
49,106 |
|
Non-controlling interests |
2,438 |
2,354 |
2,238 |
|
Total Equity |
55,590 |
53,917 |
51,344 |
|
Total Liabilities and Shareholders’ Equity |
94,547 |
91,216 |
90,512 |
ArcelorMittal Condensed Consolidated Statement of
Operations1
|
|
Three months ended |
Twelve months ended |
|
In millions of U.S. dollars unless otherwise
shown |
Dec 31, 2022 |
Sept 30, 2022 |
Dec 31, 2021 |
Dec 31, 2022 |
Dec 31, 2021 |
|
Sales |
16,891 |
18,975 |
20,806 |
79,844 |
76,571 |
|
Depreciation (B) |
(636) |
(628) |
(712) |
(2,580) |
(2,523) |
|
Impairment items4 (B) |
(1,026) |
— |
218 |
(1,026) |
218 |
|
Exceptional items5 (B) |
98 |
(381) |
— |
(283) |
(123) |
|
Operating (loss)income (A) |
(306) |
1,651 |
4,558 |
10,272 |
16,976 |
|
Operating margin % |
(1.8) % |
8.7 % |
21.9 % |
12.9 % |
22.2 % |
|
|
|
|
|
|
|
| Income
from associates, joint ventures and other investments |
121 |
59 |
383 |
1,317 |
2,204 |
| Net
interest expense |
(72) |
(37) |
(49) |
(213) |
(278) |
| Foreign
exchange and other net financing (loss) |
449 |
(247) |
(111) |
(121) |
(877) |
|
Income before taxes and non-controlling
interests |
192 |
1,426 |
4,781 |
11,255 |
18,025 |
|
Current tax expense |
(91) |
(394) |
(678) |
(2,080) |
(2,953) |
|
Deferred tax benefit |
126 |
23 |
46 |
363 |
493 |
| Income
tax benefit/(expense) (net) |
35 |
(371) |
(632) |
(1,717) |
(2,460) |
|
Income including non-controlling interests |
227 |
1,055 |
4,149 |
9,538 |
15,565 |
|
Non-controlling interests loss(income) |
34 |
(62) |
(104) |
(236) |
(609) |
|
Net income attributable to equity holders of the
parent |
261 |
993 |
4,045 |
9,302 |
14,956 |
|
|
|
|
|
|
|
|
Basic earnings per common share ($) |
0.30 |
1.11 |
3.93 |
10.21 |
13.53 |
|
Diluted earnings per common share ($) |
0.30 |
1.11 |
3.92 |
10.18 |
13.49 |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (in millions) |
865 |
892 |
1,030 |
911 |
1,105 |
|
Diluted weighted average common shares outstanding (in
millions) |
868 |
895 |
1,033 |
914 |
1,108 |
|
|
|
|
|
|
|
|
OTHER INFORMATION |
|
|
|
|
|
|
EBITDA (C = A-B) |
1,258 |
2,660 |
5,052 |
14,161 |
19,404 |
| EBITDA
Margin % |
7.4 % |
14.0 % |
24.3 % |
17.7 % |
25.3 % |
|
|
|
|
|
|
|
| Total
group iron ore production (Mt) |
10.7 |
10.6 |
13.4 |
45.3 |
50.9 |
| Crude
steel production (Mt) |
13.2 |
14.9 |
16.5 |
59.0 |
69.1 |
| Steel
shipments (Mt) |
12.6 |
13.6 |
15.8 |
55.9 |
62.9 |
ArcelorMittal Condensed Consolidated Statement of Cash
flows1
|
|
Three months ended |
Twelve months ended |
|
In millions of U.S. dollars |
Dec 31, 2022 |
Sept 30, 2022 |
Dec 31, 2021 |
Dec 31, 2022 |
Dec 31, 2021 |
|
Operating activities: |
|
|
|
|
|
|
Income attributable to equity holders of the
parent |
261 |
993 |
4,045 |
9,302 |
14,956 |
|
Adjustments to reconcile net income to net cash provided by
operations: |
|
|
|
|
|
|
Non-controlling interests (loss) / income |
(34) |
62 |
104 |
236 |
609 |
|
Depreciation and impairments items |
1,662 |
628 |
494 |
3,606 |
2,305 |
|
Exceptional items |
(98) |
381 |
— |
283 |
123 |
| Income
from associates, joint ventures and other investments |
(121) |
(59) |
(383) |
(1,317) |
(2,204) |
| Deferred
tax benefit |
(126) |
(23) |
(46) |
(363) |
(493) |
| Change
in working capital |
2,412 |
(580) |
22 |
(1,223) |
(6,409) |
| Other
operating activities (net) |
(322) |
579 |
(82) |
(321) |
1,018 |
|
Net cash provided by operating activities (A) |
3,634 |
1,981 |
4,154 |
10,203 |
9,905 |
|
Investing activities: |
|
|
|
|
|
| Purchase
of property, plant and equipment and intangibles (B) |
(1,500) |
(784) |
(1,145) |
(3,468) |
(3,008) |
| Other
investing activities (net) |
(33) |
(19) |
(90) |
(1,015) |
2,668 |
|
Net cash used in investing activities |
(1,533) |
(803) |
(1,235) |
(4,483) |
(340) |
|
Financing activities: |
|
|
|
|
|
| Net
proceeds / (payments) relating to payable to banks and long-term
debt |
1,923 |
592 |
100 |
3,283 |
(3,562) |
|
Dividends paid to ArcelorMittal shareholders |
— |
— |
— |
(332) |
(312) |
|
Dividends paid to minorities (C) |
(29) |
(124) |
(21) |
(331) |
(260) |
| Share buyback |
(288) |
(649) |
(1,820) |
(2,937) |
(5,170) |
|
Payments from Mandatorily Convertible Notes |
— |
— |
(1,196) |
— |
(1,196) |
| Lease
payments and other financing activities (net) |
(28) |
(38) |
(53) |
(160) |
(398) |
|
Net cash provided (used) by financing
activities |
1,578 |
(219) |
(2,990) |
(477) |
(10,898) |
| Net
increase / (decrease) in cash and cash equivalents |
3,679 |
959 |
(71) |
5,243 |
(1,333) |
| Cash and
cash equivalents transferred from assets held for sale |
— |
— |
— |
— |
3 |
| Effect
of exchange rate changes on cash |
656 |
(451) |
13 |
(158) |
(55) |
|
Change in cash and cash equivalents |
4,335 |
508 |
(58) |
5,085 |
(1,385) |
|
|
|
|
|
|
|
|
Free cash flow (D=A+B+C) |
2,105 |
1,073 |
2,988 |
6,404 |
6,637 |
Appendix 1: Product shipments by
region1,2
|
(000'kt) |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
Flat |
1,767 |
1,743 |
1,548 |
7,121 |
6,879 |
|
Long |
658 |
676 |
739 |
2,739 |
3,088 |
|
NAFTA |
2,338 |
2,339 |
2,205 |
9,586 |
9,586 |
|
Flat |
1,514 |
1,519 |
1,790 |
6,423 |
6,425 |
|
Long |
1,145 |
1,345 |
1,256 |
5,179 |
5,332 |
|
Brazil |
2,639 |
2,837 |
3,034 |
11,516 |
11,695 |
|
Flat |
4,751 |
4,978 |
5,788 |
21,387 |
23,485 |
|
Long |
1,933 |
1,967 |
2,421 |
8,321 |
9,236 |
|
Europe |
6,802 |
7,079 |
8,325 |
30,182 |
33,182 |
|
CIS |
916 |
1,170 |
2,067 |
4,221 |
7,883 |
|
Africa |
498 |
503 |
531 |
2,160 |
2,473 |
|
ACIS |
1,414 |
1,675 |
2,597 |
6,378 |
10,360 |
Note: “Others and eliminations” are not presented in the
table
Appendix 2a: Capital
expenditures1,2
|
(USDm) |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
NAFTA |
201 |
97 |
104 |
500 |
369 |
|
Brazil |
341 |
154 |
171 |
708 |
412 |
|
Europe |
564 |
242 |
473 |
1,204 |
1,282 |
|
ACIS |
151 |
135 |
266 |
483 |
619 |
|
Mining |
198 |
128 |
127 |
488 |
302 |
|
Total |
1,500 |
784 |
1,145 |
3,468 |
3,008 |
Note: “Others” are not presented in the table
Appendix 2b: Capital expenditure projects
Completed projects
|
Segment |
Site / unit |
Project |
Capacity / details |
Key date / completion |
|
NAFTA |
ArcelorMittal Dofasco (Canada) |
Hot strip mill modernization |
Replace existing three end of life coilers with two state of the
art coilers and new runout tables |
2Q 2022 (a) |
|
NAFTA |
ArcelorMittal Dofasco (Canada) |
#5 CGL conversion to AluSi® |
Addition of up to 160kt/year Aluminum Silicon (AluSi®) coating
capability to #5 Hot-Dip Galvanizing Line for the production of
Usibor® steels |
3Q 2022 (b) |
Ongoing projects
|
Segment |
Site / unit |
Project |
Capacity / details |
Key date / forecast completion |
|
Brazil |
ArcelorMittal Vega Do Sul |
Expansion project |
Increase hot dipped / cold rolled coil capacity and construction of
a new 700kt continuous annealing line (CAL) and continuous
galvanizing line (CGL) combiline |
4Q 2023 (c) |
|
Mining |
Liberia mine |
Phase 2 premium product expansion project |
Increase production capacity to 15Mt/year |
4Q 2024 (d) |
|
NAFTA |
Las Truchas mine (Mexico) |
Revamping and capacity increase to 2.3MT |
Revamping project with 1Mtpa pellet feed capacity increase (to 2.3
Mt/year) with DRI concentrate grade capability |
2H 2024 (e) |
|
Brazil |
Serra Azul mine |
4.5Mtpa direct reduction pellet feed plant |
Facilities to produce 4.5Mt/year DRI quality pellet feed by
exploiting compact itabiriteiron ore |
2H 2024 (f) |
|
Brazil |
Monlevade |
Sinter plant, blast furnace and melt shop |
Increase in liquid steel capacity by 1.0Mt/year; Sinter feed
capacity of 2.25Mt/year |
2H 2024 (g) |
|
ACIS |
ArcelorMittal Kryvyi Rih(Ukraine) |
Pellet Plant |
Facilities to produce 5.0Mtpa pellets, replacing two existing
sinter plants ensuring environmental compliance and improving
productivity |
On hold/ under review (h) |
|
Brazil |
Barra Mansa |
Section mill |
Increase capacity of HAV bars and sections by 0.4Mt/pa |
1Q 2024 (i) |
|
Others |
Andhra Pradesh (India) |
Renewable energy project |
975 MW of nominal capacity solar and wind power |
1H 2024 (j) |
|
Europe |
Mardyck (France) |
New Electrical Steels production facilities |
Facilities to produce 170kt NGO Electrical Steels (of which 145kt
for Auto applications) consisting of annealing and pickling line
(APL), reversing mill (REV) and annealing and varnishing (ACL)
lines |
2H 2024 (k) |
a) 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 was upgraded and includes innovative power
cooling technology to improve product capability. The project was
completed in 2Q 2022 and is estimated to add ~$25 million of EBITDA
in 2023.
b) 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 becomes 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 was
completed in 3Q 2022 and is estimated to add $40 million of EBITDA
on full completion and post ramp up (estimated by 2025).
c) 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 project is expected to be
completed in 4Q 2023 and estimated to add >$0.1 billion of
EBITDA on full completion and post ramp up.
d) ArcelorMittal Liberia has been operating 5Mt direct shipping
ore (DSO) since 2011 (Phase 1). The Company restarted construction
of a Phase 2 project that envisages the construction of 15Mtpa of
concentrate sinter fines capacity and associated infrastructure.
Changed project scope and engineering, together with supply chain
delays has impacted the construction schedule. Detailed
construction design is well advanced. Main civil works started,
whilst contracting and mobilization for other construction packages
underway. Capex required to conclude the project is currently under
review given impact of enlarged scope and inflation. Under the
amendment to the Mineral Development Agreement (MDA) signed in
September 2021, the Company has further expansion opportunities up
to 30Mtpa. First concentrate is now estimated in 4Q 2024. The
project is estimated to add approximately $250 million of EBITDA on
full completion and post ramp up to 15Mtpa rate. Revised capex
estimates will be communicated in 1H 2023.
e) 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 (2.0Mtpa) and DRI route
(0.3Mtpa) for a total of 2.3Mtpa. Primary target is to supply
ArcelorMittal Mexico steel operations with high quality feed.
Project start-up date delayed to 2H 2024 due to slower progress of
equipment deliveries and construction works, as well as delays to
obtain required construction permits. The project is estimated to
add approximately $50 million of EBITDA on full completion and post
ramp up.
f) 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 date delayed to 2H 2024 due to slower than scheduled
mobilization leading to delayed construction works. The project is
estimated to add approximately $100 million of EBITDA on full
completion and post ramp up.
g) The Monlevade upstream expansion project consisting of the
sinter plant, blast furnace and meltshop has recommenced in late
2021, following the anticipated improvement in Brazil domestic
market. Capex required to complete the project is currently under
review and the revised capex estimates will be communicated in 1H
2023.
h) Investment in ArcelorMittal Kryvyi Rih to build a 5.0Mtpa
pellet plant. However the project is on hold and has been suspended
with the revised completion date and budget dependent on when the
project can be effectively resumed due to the Russian invasion of
Ukraine.
i) ~$0.25 billion investment in sections mill at Barra Mansa
(Brazil) with 400ktpa production capacity. The aim of the project
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. The project commenced in 2022 and is
expected to be completed by 1Q 2024 and estimated to add $0.1
billion of EBITDA on full completion and post ramp up.
j) This $0.6 billion investment, combining solar and wind power,
will be supported by Greenko’s hydro pumped storage project, which
helps to overcome the intermittent nature of wind and solar power
generation. The project is owned and funded by ArcelorMittal.
Greenko will design, construct and operate the facilities in Andhra
Pradesh, Southern India. AMNS India will enter into a 25 year
off-take agreement with ArcelorMittal to purchase 250 MW of
renewable electricity annually from the project, resulting in over
20% of the electricity requirement at AMNS India’s Hazira plant
coming from renewable sources, reducing carbon emissions by
approximately 1.5Mt per year. Necessary allotment of land has been
received from the Government of Andhra Pradesh. Private land
acquisition is in progress and key contracts for wind projects have
been executed and are in negotiation for the solar project. The
project commissioning is expected by mid-2024 and estimated to add
$70 million of EBITDA (excluding savings at AMNS India) upon
completion. The Company is studying the option to develop a second
phase which would double the installed capacity.
k) On March 17, 2022, ArcelorMittal announced an investment with
the support of the French government, to create 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 d’Apcher, in the south of France. The new industrial
unit in Mardyck will have a 170,000-tonne production capacity and
is scheduled to start up in 3Q 2024. The $0.5 billion investment
program aims at implementing a production capacity of 170Kt
Non-Grain Orientated (NGO) Electrical Steels (of which 145kt for
automotive applications) consisting of annealing and pickling line
(APL), reversing mill (REV) and annealing and varnishing (ACL) line
to be installed in Mardyck (France). The completion will occur in 2
steps: the commissioning and start of ramp-up of the
end-of-streamline (Annealing & Coating Line and related
installations) is expected to be in 2H 2024; the start-up of the
Annealing and Pickling Line and the Reversing Mill is expected to
occur in 2Q 2025. The project is estimated potentially to add $100
million of EBITDA on full completion and post ramp up.
JV capex: Ongoing projects
|
JV |
Site / unit |
Project |
Capacity / details |
Key date / forecast completion |
|
VAMA |
Vama |
Current capacity increase by 40% to 2Mtpa |
New CGL capacity of 450,000 tons/year shall be added, VAMA to reach
1.6 Mtpa in CGL/CAL combined capacity and 2.0 Mtpa in PLTCM |
1H 2023 (l) |
|
AMNS Calvert |
Calvert |
New 1.5Mt EAF and caster |
New 1.5Mt EAF and caster |
2H 2023 (m) |
|
AMNS India |
Hazira |
Debottlenecking existing assets and capacity expansion; and other
investments ongoing |
AMNS India medium-term plans are to expand and grow initially to
~15Mt by early 2026 in Hazira (phase 1A); ongoing downstream
projects |
1H 2026 (n) |
l) VAMA, our 50:50 joint venture with Hunan Valin, is a
state-of-the-art facility focused on rolling steel for
high-demanding applications in particular automotive. The business
is performing well and plans to expand the current capacity by 40%
to 2Mtpa by 2023, financed from its own resources. The project is
at an advanced stage of implementation planned for completion in
mid-2023 with first coils having been produced in January 2023.
Phase 2 expansion further enable VAMA to meet growing demand of
high value add solutions from the Chinese automotive / NEV
market.
m) AMNS Calvert ("Calvert") is constructing a new 1.5Mt EAF and
caster (estimated completion in 2H 2023). The joint venture is to
invest $775 million. Option to add a further 1.5Mt EAF at lower
capex intensity is being studied.
n) AMNS India is debottlenecking its operations (steel shop and
rolling parts) to achieve capacity of 8.6Mt per annum by the end of
2024. AMNS India medium-term plans are to expand and grow initially
to ~15Mt in 1H 2026 in Hazira (phase 1A) including automotive
downstream and enhancements to iron ore operations, with estimated
capex of ~$7.4 billion (for $0.8 billion for debottlenecking, $1.0
billion for downstream projects and $5.6 billion for upstream
projects. Phase 1A plans include a CRM2 complex and galvanizing and
annealing line, 2 blast furnaces, steel shop, HSM, ancillary
equipment (including coke, sinter, networks, power, gas, oxygen
plant etc.); and raw material handling. Start of BF2 expected in
2025 and BF3 in 2026. Also included is BF1 net capacity increase
from 2Mtpa to 3Mtpa. There are further options to potentially grow
to 20Mt per annum (Phase 1B). On November 21, 2022, AMNS India
concluded a transaction to acquire port, power and other logistics
and infrastructure assets in India from the Essar Group for a net
value of ~$2.4 billion. In March 2021, AMNS India signed a
Memorandum of Understanding ("MoU") with the Government of Odisha
in view of building an integrated steel plant with a 12Mtpa
capacity in Kendrapara district of state Odisha. A pre-feasibility
study report was submitted to the state government in 3Q 2021, and
AMNS India is currently engaging with the government for further
studies and clearances. Further options to build a 6Mtpa integrated
steel plant are being assessed. The Thakurani mine is operating at
full 5.5Mtpa capacity since 1Q 2021, while the second Odisha pellet
plant was commissioned and started in September 2021, adding 6Mtpa
for a total 20Mtpa of pellet capacity. In addition, in September
2021, AMNS India commenced operations at Ghoraburhani - Sagasahi
iron ore mine in Odisha. The mine is set to gradually ramp up
production to a rated capacity of 7.2Mtpa and contribute
significantly to meeting AMNS India’s long-term raw material
requirements.
Appendix 3: Debt repayment schedule as of December 31,
2022
|
(USD billion) |
2023 |
2024 |
2025 |
2026 |
2027 |
>2027 |
Total |
|
Bonds |
1.2 |
0.9 |
1.0 |
1.0 |
1.2 |
2.5 |
7.8 |
|
Commercial paper |
0.8 |
— |
— |
— |
— |
— |
0.8 |
|
Other loans |
0.6 |
0.3 |
0.6 |
0.2 |
0.5 |
0.9 |
3.1 |
|
Total gross debt |
2.6 |
1.2 |
1.6 |
1.2 |
1.7 |
3.4 |
11.7 |
Appendix 4: Reconciliation of gross debt to net
debt
|
(USD million) |
Dec 31, 2022 |
Sept 30, 2022 |
Dec 31, 2021 |
| Gross
debt |
11,650 |
8,994 |
8,401 |
|
Less: Cash and cash equivalents |
(9,414) |
(5,067) |
(4,371) |
|
Net debt |
2,236 |
3,927 |
4,030 |
|
|
|
|
|
|
Net debt / LTM EBITDA |
0.2 |
0.2 |
0.2 |
Appendix 5: Adjusted net income and adjusted basic
EPS
|
(USDm) |
4Q 22 |
3Q 22 |
4Q 21 |
12M 22 |
12M 21 |
|
Net income attributable to equity holders of the
parent |
261 |
993 |
4,045 |
9,302 |
14,956 |
|
Impairment items 4 |
(1,026) |
— |
218 |
(1,026) |
218 |
| Exceptional
items 5 |
98 |
(381) |
— |
(283) |
(123) |
|
Adjusted net income |
1,189 |
1,374 |
3,827 |
10,611 |
14,861 |
|
|
|
|
|
|
|
|
Shares (Basic EPS) million shares |
865 |
892 |
1,030 |
911 |
1,105 |
|
|
|
|
|
|
|
|
Adjusted basic EPS $/share |
1.37 |
1.54 |
3.72 |
11.65 |
13.45 |
Appendix 6: Terms and
definitions
Unless indicated otherwise, or the context otherwise requires,
references in this earnings release to the following terms have the
meanings set out next to them below:Adjusted basic
EPS: refers to adjusted net income divided by the weighted
average common shares outstanding.Adjusted net
income: refers to reported net income less impairment
items and exceptional items 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: represents
cash and cash equivalents, restricted cash, 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.Depreciation: refers to amortization and
depreciation.EPS: refers to basic or diluted
earnings per share. 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 income(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
shareholdersGross debt: long-term debt and
short-term debt.Impairment items: refers to
impairment charges net of reversals. Iron ore reference
prices: refers to iron ore prices for 62% Fe CFR
China.Kt: refers to thousand metric
tonnes.Liquidity: cash and cash equivalents 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.Net debt/LTM
EBITDA: refers to Net debt divided by EBITDA.Net
interest expense: includes interest expense less interest
incomeOn-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. 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 captive 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). 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.STIP: refers to
short term incentive plan.LTIP: refers to long
term incentive plan.Working capital change (working capital
investment / release): Movement of change in working
capital - trade accounts receivable plus inventories less trade and
other accounts payable.
Footnotes
- The financial information in this press release has been
prepared consistently with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting
Standards Board (“IASB”) and as adopted by the European Union. The
interim financial information included in this announcement has
also been prepared in accordance with IFRS applicable to interim
periods, however this announcement does not contain sufficient
information to constitute an interim financial report as defined in
International Accounting Standard 34, “Interim Financial
Reporting”. The numbers in this press release have not been
audited. The financial information and certain other information
presented in a number of tables in this press release have been
rounded to the nearest whole number or the nearest decimal.
Therefore, the sum of the numbers in a column may not conform
exactly to the total figure given for that column. In addition,
certain percentages presented in the tables in this press release
reflect calculations based upon the underlying information prior to
rounding and, accordingly, may not conform exactly to the
percentages that would be derived if the relevant calculations were
based upon the rounded numbers. Segment information presented in
this press release is prior to inter-segment eliminations and
certain adjustments made to operating result of the segments to
reflect corporate costs, income from non-steel operations (e.g.,
logistics and shipping services) and the elimination of stock
margins between the segments. This press release also includes
certain non-GAAP financial/alternative performance measures.
ArcelorMittal presents EBITDA and EBITDA/tonne, free cash flow
(FCF) and ratio of net debt/EBITDA which are non-GAAP
financial/alternative performance measures, as additional measures
to enhance the understanding of its operating performance.
ArcelorMittal also presents Equity book value per share and ROE as
shown in footnotes to this press release. ArcelorMittal believes
such indicators are relevant to provide management and investors
with additional information. ArcelorMittal also presents net debt
and change in working capital as additional measures to enhance the
understanding of its financial position, changes to its capital
structure and its credit assessment. ArcelorMittal also presents
adjusted net income(loss) and adjusted basic earnings per share as
it believes these are useful measures for the underlying business
performance excluding impairment items, exceptional items. The
Company’s guidance as to free cash flow, cash taxes and its working
capital release (or the change in working capital included in net
cash provided by operating activities) for 2023 is based on the
same accounting policies as those applied in the Company’s
financial statements prepared in accordance with IFRS. Non-GAAP
financial/alternative performance measures should be read in
conjunction with, and not as an alternative to, ArcelorMittal's
financial information prepared in accordance with IFRS.
- Effective 2Q 2021, ArcelorMittal retrospectively amended its
presentation of reportable segments. The results of each mine are
accounted for within the steel segment that it primarily supplies.
Summary of changes: NAFTA: all Mexico mines; Brazil: Andrade and
Serra Azul mines; Europe: ArcelorMittal Prijedor mine (Bosnia and
Herzegovina); ACIS: Kazakhstan and Ukraine mines; and Mining: only
AMMC and Liberia iron ore mines.
- LTIF figures presented for 12M 2022 of 0.70x and 12M 2021 of
0.79x exclude ArcelorMittal Italia (which was deconsolidated as
from 2Q 2021 onwards).
- In 2022, the Company recognized a $1,026 million impairment
charge related to property, plant and equipment with respect to
ArcelorMittal Kriviy Rih (Ukraine) in the ACIS segment, where the
ongoing conflict with Russia resulted in low levels of production,
sales and income and created significant uncertainty about the
timing and ability of operations to return to a normal level of
activity. Recent attacks against Ukrainian power infrastructures
caused additional operational issues for ArcelorMittal Kriviy Rih
and the increasing geopolitical tensions resulted in a substantial
increase in the discount rate applied by the Company in its value
in use calculation. Impairment gain for 12M 2021 amounted to $218
million following improved cash flow projections in the context of
decarbonization plans in Sestao (Spain) (partially reversing the
impairment recognized in 2015).
- Exceptional items for 12M 2022 of $0.3 billion included $0.5
billion of non-cash inventory related provisions (recognized in 3Q
2022) to reflect the net realizable value of inventory under IFRS
with declining market prices in Europe and partially offset by a
$0.1 billion purchase gain on the acquisition of a Hot Briquetted
Iron (‘HBI’) plant in Texas and $0.1 billion gain following the
settlement of a claim by ArcelorMittal for a breach of a supply
contract. Exceptional items for 12M 2021 of $123 million related to
expected costs for the decommissioning of the dam at the Serra Azul
mine in Brazil.
- See Appendix 5 for reconciliation of adjusted net income and
adjusted basic EPS.
- September 30, 2020, was the inception date of the recent share
buyback programs.
- ROE refers to "Return on Equity" which is calculated as
trailing twelve-month net income (excluding impairment charges and
exceptional items) attributable to equity holders of the parent
divided by the average equity attributable to the equity holders of
the parent over the period. 2022 ROE of 20.3% ($10.6 billion /
$52.3 billion).
- Equity book value per share is calculated as the Equity
attributable to the equity holders of the parent divided by diluted
number of shares at the end of the period. 4Q 2022 total equity of
$53.2 billion divided by 862 million diluted shares outstanding
equals $62/sh. 3Q 2022 total equity of $51.6 billion divided by 873
million diluted shares outstanding equals $59/sh. 4Q 2021 total
equity of 49.1 billion divided by 967 million diluted shares
outstanding equals $51/sh.
- XCarb™ is designed to bring together all of ArcelorMittal’s
reduced, low and zero-carbon products and steelmaking activities,
as well as wider initiatives and green innovation projects, into a
single effort focused on achieving demonstrable progress towards
carbon neutral steel. Alongside the new XCarb™ brand, we have
launched three XCarb™ initiatives: the XCarb™ innovation fund,
XCarb™ green steel certificates and XCarb™ recycled and renewably
produced for products made via the Electric Arc Furnace route using
scrap. The Company is offering green steel using a system of
certificates (XCarb® green certificates). These will be issued by
an independent auditor to certify tonnes of CO2 savings achieved
through the Company’s investment in decarbonization technologies in
Europe. Net-zero equivalence is determined by assigning CO2 savings
certificates equivalent to CO2 per tonne of steel produced in 2018
as baseline. The certificates will relate to the tonnes of CO2
saved in total, as a direct result of the decarbonization projects
being implemented across a number of its European sites.
- 12M 2023 steel shipment guidance does not include CSP
acquisition and assumes no change in Ukraine.
- The Company has introduced a 50% increase in the short term
incentive plan (STIP) link to safety performance (with fatalities
acting as a circuit breaker); increased the safety target in STIP
to 15% and long term incentive plan (LTIP) to 10%; and included ESG
objectives in LTIP.
- ArcelorMittal Mines Canada, otherwise known as ArcelorMittal
Mines and Infrastructure Canada.
- On December 19, 2018, ArcelorMittal signed a $5.5 billion
Revolving Credit Facility, with a five-year maturity plus two
one-year extension options. During the fourth quarter of 2019,
ArcelorMittal executed the option to extend the facility to
December 19, 2024. The extension was completed for $5.4 billion of
the available amount, with the remaining $0.1 billion remaining
with a maturity of December 19, 2023. In December 2020,
ArcelorMittal executed the second option to extend the facility,
and the new maturity is now extended to December 19, 2025. On April
30, 2021, ArcelorMittal amended its $5.5 billion RCF to align with
its sustainability and climate action strategy. As of December 31,
2022, the $5.5 billion revolving credit facility was fully
available.
- The listed investment of Erdemir had a market value of $910
million, $660 million and $885 million as of December 31, 2022,
September 30, 2022, and December 31, 2021, respectively.
- Estimate of additional contribution to EBITDA, based on
assumptions including synergies and once ramped up to capacity and
assuming prices/spreads generally in line with long term
averages.
- FY 2021 FCF of $6.6 billion ($9.9 billion net cash provided by
operating activities less capex of $3.0 billion less minority
dividends of $0.3 billion).
- On March 30, 2022, Votorantim exercised the put option right it
has under its shareholders’ agreement with the Company to sell its
entire equity interest in ArcelorMittal Brasil to the Company,
following the acquisition of Votorantim S.A.'s long steel business
in Brazil in 2018, which became a wholly-owned subsidiary of
ArcelorMittal Brasil. The exercise price is calculated pursuant to
an agreed formula in the shareholders’ agreement which applies a 6x
multiple of ArcelorMittal Brasil Longs Business EBITDA in the four
immediately preceding calendar quarters from the date of the 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%. ArcelorMittal Brasil
calculated the put option exercise price in the amount of $0.2
billion. Votorantim S.A. has indicated that it does not agree with
ArcelorMittal Brasil’s calculation of the exercise price and filed
a request for arbitration on September 28, 2022.
- Strategic capex excludes the anticipated upward revisions to
Liberia and Monlevade capex, due to be communicated in 1H
2023.
Fourth quarter 2022 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 and twelve-month period ended December 31, 2022 on:
Thursday February 9, 2023 at 9.30am US
Eastern time; 14.30pm London time and 15.30pm CET.
Participants will need to pre-register to receive dial-in
details and an individual pin-code to access the call using the
link
below:https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=5891634&linkSecurityString=763befe26
You can also listen to the live audio webcast via this link:
https://interface.eviscomedia.com/player/1149Please 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 StatementsThis 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
ArcelorMittalArcelorMittal is one of the world's leading
steel and mining company, with a presence in 60 countries and
primary steelmaking facilities in 16 countries. In 2022,
ArcelorMittal had revenues of $79.8 billion and crude steel
production of 59 million metric tonnes, while iron ore production
reached 45.3 million metric tonnes.
Our goal is to help build a better world with smarter steels.
Steels made using innovative processes which use less energy, emit
significantly less carbon and reduce costs. Steels that are
cleaner, stronger and reusable. Steels for electric vehicles and
renewable energy infrastructure that will support societies as they
transform through this century. With steel at our core, our
inventive people and an entrepreneurial culture at heart, we will
support the world in making that change. This is what we believe it
takes to be the steel company of the future.
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/
EnquiriesArcelorMittal 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
- 4Q22 Earnings release FINAL.pdf
Arcelor Mittal (NYSE:MT)
Historical Stock Chart
From May 2023 to Jun 2023
Arcelor Mittal (NYSE:MT)
Historical Stock Chart
From Jun 2022 to Jun 2023
