Luxembourg, May 7, 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 period ended March 31, 2020.
COVID-19 impacts
• Faced with a significant humanitarian challenge from the COVID-19 pandemic, the Company’s first priority has been to take all the necessary actions to safeguard the wellbeing of our people and to provide support to the extent required in the communities in which we operate
• Economic activity and steel market conditions have significantly deteriorated since measures were introduced by
governments worldwide to contain the COVID-19 pandemic
• The Company has responded swiftly: aligning production to a lower order book, and taking measures to reduce all costs in line with exceptionally low capacity utilization levels
Highlights of 1Q 2020:
• Health and safety performance: LTIF rate2 of 1.01x in 1Q 2020
• Improved operating performance in 1Q 2020 reflects the positive market developments prior to the escalation of the COVID-19 pandemic in March; operating loss of $0.4bn (vs. loss of $1.5bn in 4Q 2019); EBITDA increased to $1.0bn (4.5% higher than 4Q 2019)
• Net loss of $1.1bn in 1Q 2020 (adjusted net loss of $0.6bn, excluding impairment and exceptional items)3
• Strong cash management during the quarter, including a working capital investment limited to $0.1bn; gross debt of $13.8bn and a marginal increase in net debt to $9.5bn (down $1.7bn vs 1Q 2019)
• Liquidity at the end of 1Q 2020 stood at $9.8bn (consisting of cash and cash equivalents of $4.3bn and $5.5bn of available credit lines5); further supplemented by a recently signed new $3bn credit facility5

Outlook and guidance:
• The Company has moved swiftly to secure its assets and match production to the evolving orderbook, with steel shipments for 2Q 2020 expected within the range of 13.5Mt to 14.5Mt; the actions taken to reduce all costs in line with reduced operating rates is expected to yield a reduction in fixed costs10 by 25%-30% in 2Q 2020, essentially maintaining fixed costs per-tonne at the 1Q 2020 level; EBITDA for 2Q 2020 is expected to be within the range of $0.4bn to $0.6bn
• Certain cash needs of the business are now expected to be approximately $3.5bn in 2020 (vs. $4.5bn previous guidance), due to lower planned capex (reduced to $2.4bn from $3.2bn previous guidance) and lower taxes
• Annual working capital needs will be determined by the extent market conditions recover in 2H 2020, but the Company still expects to release the $1bn in working capital previously targeted
• The Company’s $2 billion asset portfolio optimization program continues to progress. Given suitable and viable buyers have expressed serious interest in certain assets, the Company remains confident in completing the program by mid-2021
• While the impacts of COVID-19 have introduced unanticipated challenges, the Company continues to target achievement of its $7bn net debt objective in the near term
• Against the backdrop of significant cost savings measures being taken across the business, the Board determined it both appropriate and prudent to suspend dividend payments until such a time as the operating environment normalizes.
Financial highlights (on the basis )

(USDm) unless otherwise shown 1Q 20 4Q 19 3Q 19 2Q 19 1Q 19
Sales 14,844 15,514 16,634 19,279 19,188
Operating (loss) / income (353) (1,535) 297 (158) 769
Net (loss)/income attributable to equity holders of the parent (1,120) (1,882) (539) (447) 414
Basic (loss)/earnings per common share (US$) (1.11) (1.86) (0.53) (0.44) 0.41

Operating (loss) / income / tonne (US$/t) (18) (78) 15 (7) 35
EBITDA 967 925 1,063 1,555 1,652
EBITDA/ tonne (US$/t) 50 47 53 68 76
Steel-only EBITDA/ tonne (US$/t) 34 32 34 43 56

Crude steel production (Mt) 21.1 19.8 22.2 23.8 24.1
Steel shipments (Mt) 19.5 19.7 20.2 22.8 21.8
Own iron ore production (Mt) 14.4 14.8 13.6 14.6 14.1
Iron ore shipped at market price (Mt) 8.6 9.6 8.4 9.9 9.2

Commenting, Mr. Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said:
"The improved operating performance in the first quarter has been considerably overshadowed by the COVID-19 crisis. Faced
with a significant humanitarian challenge, the Company’s first priority has been to take all the necessary actions to safeguard the
wellbeing of our people and to provide support to the extent required in the communities in which we operate. But we have also
moved decisively to protect the business in the face of the completely unprecedented scenario we are facing where social and
economic lockdown has contributed to a significant decline in demand. We moved swiftly to temporary idle furnaces, cutting
production across markets and reducing operating and capital costs to match this environment. We have continued to meet
remaining customer demand from a reduced level of production and are very thankful to our employees and stakeholders for
their support in enabling plants to keep running.
“There are still too many uncertainties to accurately predict what the rest of the year holds. However, it seems likely that over the
course of this month countries will start to announce details of their “exit” strategies. Whilst these are likely to be an easing, not
an immediate ending of lockdown, construction and manufacturing are expected to be among the first sectors to be permitted to
re-start operations and indeed we are seeing signs of customers re-starting production. Rigorous planning to ensure we can
meet customer demand whilst protecting the health and safety of our people has been undertaken, leaning on the experience of
our plants which have already been on this journey.
“The remainder of this year will be challenging, but I am confident that ArcelorMittal has the experience and inherent resilience,
to manage through these difficult times. As a result of the hard work undertaken in recent years to strengthen the balance sheet,
we went into the COVID-19 crisis with the lowest net debt since the creation of the Company, which is a matter of considerable
comfort.
“I am particularly grateful for the commitment shown by our teams in these recent weeks. Crises do tend to bring out the best in
people and we have many examples of this, from our employees working in our plants to produce steels for essential products, to our facilities around the world looking to see how they can support their local communities, to our research and development teams harnessing their skills and expertise in ways quite unconnected with steel-making, for example in the design of 3D printers
and ventilators. Together we will continue to navigate these extraordinary times and ensure that ArcelorMittal is able to secure
the wellbeing of its people and its position as the world’s leading steel Company.”

see & read more on
https://corporate-media.arcelormittal.com/media/lulj5zvm/1q20-earnings-release.pdf

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