Luxembourg, November 5, 2020 - 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 for the three-month and nine-month periods ended September 30, 2020.

Highlights:
• Health and safety: LTIF rate2 of 0.95x in 3Q 2020 as compared to 0.77x in 2Q 2020; 0.92x in 9M 2020
• Improved operating performance in 3Q 2020 reflects a gradual recovery in steel end markets (in particular automotive) following the severe impacts of COVID-19 lockdowns on economic activity in 2Q 2020 as well as stronger mining segment performance
• Operating income of $0.7bn in 3Q 2020 (including $0.6bn net reversal of impairments3) as compared to an operating loss of $0.3bn in 2Q 2020 (which included $0.2bn exceptional items3)
• EBITDA of $0.9bn in 3Q 2020, 27.4% higher as compared to $0.7bn in 2Q 2020, primarily reflects: the impacts on the steel business of 17.5% higher shipments and an improved sales mix (proportionally more sales to automotive customers), offset in part by a negative price-cost effect; and the impacts of higher marketable iron ore prices (+26.2%) and market priced iron ore shipments (+7.5%) driving improved mining segment results
• Net loss of $0.3bn in 3Q 2020 as compared to net loss of $0.6bn in 2Q 2020; excluding impairment items partially offset by deferred tax expense (each related to the agreed sale of ArcelorMittal USA3), adjusted net loss in 3Q 2020 was $0.2bn as compared to adjusted net loss of $0.3bn in 2Q 2020 (which excluded exceptional items)
• Free cash inflow of $1.3bn in 3Q 2020 (net cash provided by operating activities of $1.8bn less $0.5bn capex) includes a working capital release of $1.1bn. 9M 2020 working capital release of $0.6bn with full year 2020 guidance of between $0.6bn - $1.0bn
• Gross debt of $13.7bn and net debt of $7.0bn as of September 30, 2020; net debt reduced by $0.9bn during the quarter primarily driven by positive free cash flow offset in part by forex impacts; net debt lower by $3.7bn as compared to $10.7bn as of September 30, 2019

Strategic update:
• Deleveraging complete: The Company has long prioritized its $7bn net debt target; having now achieved this level, the Company will now prioritize cash returns to shareholders, starting with the $500m share buyback program initiated on September 28, 2020 (subsequently completed on October 30, 2020); the Company intends to present an updated distribution policy at the time of full year 2020 results
• $2bn asset portfolio optimization program complete: The agreed sale of 100% of the shares of ArcelorMittal USA (which is expected to close within 4Q 2020) completes the Company’s asset portfolio optimization target 9 months ahead of schedule
• Strategic repositioning of North American platform: The Company maintains a strong presence in the NAFTA market with cost competitive assets in Canada/Mexico, state of the art finishing assets at Calvert (with the announced intention to build an EAF), and technology leading R&D capabilities
• Green Steel: The Company will offer its customers green steel9 by way of a certification system linked to CO2 savings, achieved through investment in decarbonization technologies, starting in 2020, with plans to scale up this offer to 600kt by 2022
• 2050 net zero group carbon emissions target: A group-wide commitment focused on Hydrogen-DRI and Smart Carbon technologies which if supported by appropriate policy framework can make carbon-neutral steel making a reality

Financial highlights (on the basis of IFRS1 ):
(USDm) unless otherwise shown 3Q 20 2Q 20 3Q 19 9M 20 9M 19
Sales 13,266 10,976 16,634 39,086 55,101
Operating income / (loss) 718 (253) 297 112 908
Net loss attributable to equity holders of the parent (261) (559) (539) (1,940) (572)
Basic loss per common share (US$) (0.21) (0.50) (0.53) (1.73) (0.56)

Operating income/ (loss) / tonne (US$/t) 41 (17) 15 2 14
EBITDA 901 707 1,063 2,575 4,270
EBITDA/ tonne (US$/t) 52 48 53 50 66
Steel-only EBITDA/ tonne (US$/t) 23 21 34 27 45

Crude steel production (Mt) 17.2 14.4 22.2 52.7 70.1
Steel shipments (Mt) 17.5 14.8 20.2 51.8 64.8
Own iron ore production (Mt) 14.8 13.5 13.6 42.7 42.3
Iron ore shipped at market price (Mt) 9.8 9.2 8.4 27.6 27.5

Commenting, Mr. Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said:
“The third quarter marked an improved operating performance for the Group with steel markets recovering gradually from the very challenging second quarter after the ending of lockdowns. All steel segments saw improved demand with Brazil and ACIS showing particularly encouraging profitability improvement. Our mining segment also delivered a strong performance taking advantage of the higher iron-ore price environment and outperforming production targets.
The quarter was also characterized by strong cash flow generation and the achievement of some important strategic milestones.
In this very tough environment, we take considerable satisfaction from the fact that our deleveraging program and asset disposal program are now complete. Following the agreed sale of ArcelorMittal USA, we can now prioritize returning cash to shareholders.
During the quarter we also announced a Group 2050 net zero target and the launch of a green steel product for the first time. We remain hopeful that we will start to see the introduction of the policy required to unlock potential and deliver real progress in the coming years.
The recent rise in COVID-19 cases worldwide makes it prudent to remain cautious about the outlook and we should be prepared for further volatility. However, our success to date in protecting our people, assets, profitability and cashflow throughout the crisis
puts us in a good position to take advantage of further economic recovery. We have also learned valuable lessons in how to work smarter and we are determined to continue these efforts to continuously improve our productivity and profitability on an ongoing basis.
Finally, I would like to take this opportunity to thank all our employees who continue to demonstrate great drive, commitment and resilience to keep ArcelorMittal inventing and producing the ever-smarter steels that will be required for the future.”

Sustainable development and safety performance
Health and safety - Own personnel and contractors lost time injury frequency rate Protecting the health and wellbeing of employees remains the Company’s overarching priority with ongoing strict adherence to World Health Organisation guidelines and specific government guidelines have been followed and implemented. We continue to ensure extensive monitoring, introduced very strict sanitation practices, continue to enforce social distancing measures at all operations, and have implemented remote working wherever possible and provided essential personal protective equipment to
our people.
Health and safety performance2 (inclusive of ArcelorMittal Italia (previously known as Ilva)), based on own personnel and contractors lost time injury frequency (LTIF) rate was 0.95x in the third quarter of 2020 ("3Q 2020") as compared to 0.77x in second quarter of 2020 ("2Q 2020") and 1.36x in third quarter of 2019 ("3Q 2019"). Excluding the impact of ArcelorMittal Italia,
the LTIF was 0.56x for 3Q 2020 as compared to 0.50x for 2Q 2020 and 0.82x for the 3Q 2019.
Health and safety performance (inclusive of ArcelorMittal Italia), based on own personnel and contractors lost time injury frequency (LTIF) rate was 0.92x in the first nine months of 2020 ("9M 2020") as compared to 1.24x in first nine months of 2019 ("9M 2019"). Health and safety performance (excluding the impact of ArcelorMittal Italia) for 9M 2020 was 0.60x as compared to
0.71x for 9M 2019.
The Company’s efforts to improve its health and safety record remain focused on both further reducing the rate of severe injuries
and preventing fatalities.
Own personnel and contractors - Frequency rate
Lost time injury frequency rate 3Q 20 2Q 20 3Q 19 9M 20 9M 19
Mining 0.35 0.54 1.53 0.58 0.86
NAFTA 0.32 0.46 0.54 0.50 0.53
Brazil 0.36 0.15 0.21 0.33 0.37
Europe 1.04 0.96 1.18 1.00 0.98
ACIS 0.66 0.48 0.59 0.64 0.65
Total Steel 0.60 0.50 0.71 0.62 0.70
Total (Steel and Mining) excluding ArcelorMittal Italia 0.56 0.50 0.82 0.60 0.71
ArcelorMittal Italia 12.15 9.14 13.45 9.58 12.61
Total (Steel and Mining) including ArcelorMittal Italia 0.95 0.77 1.36 0.92 1.24

Key sustainable development highlights for 3Q 2020:
During 3Q 2020, the Company highlighted:
• Its target to become a net zero carbon emissions Company by 2050, building on its 2019 commitment to become carbon neutral in Europe by the same date;
• A new offer of green steel9 by way of a certification system linked to CO2 savings achieved through investment in
decarbonization technologies. 30,000 tonnes will be available this year, rising to 120,000 tonnes in 2021 and 600,000 tonnes by 2022;
• Completion of two environmental projects in Zenica, Bosnia & Herzegovina, including the installation of a second innovative hybrid filter in the sinter plant; and
• Its intention to set out further details in support of its 2050 net zero target in its second climate action report, which is anticipated to be published before the end of 2020.

see & read more on
https://corporate-media.arcelormittal.com/media/zziaj401/3q20-earnings-release_5-nov-20.pdf

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