ArcelorMittal including its subsidiaries (“ArcelorMittal” or the “Company”) is one of the world's leading integrated steel and mining companies, with steel-making operations in 16 countries on four continents. ArcelorMittal had sales of $37.1 billion, steel shipments of 28.7 million tonnes, crude steel production of 29.2 million tonnes, iron ore production of 21.3 million tonnes (Mining segment iron ore production of 13.1 million tonnes) for the six months ended June 30, 2023 as compared to sales of $44.0 billion, steel shipments of 29.7 million tonnes, crude steel production of 30.9 million tonnes, iron ore production of 24.0 million tonnes (Mining segment iron ore production 14.2 million tonnes) for the six months ended June 30, 2022.

ArcelorMittal's steel-making operations include 38 integrated and mini-mill steel-making facilities. ArcelorMittal is the largest steel producer in Europe and among the largest in the Americas, second largest in Africa, the sixth largest steel producer in the CIS region and has a smaller but growing presence in Asia. ArcelorMittal produces a broad range of high-quality finished and semi-finished steel products ("semis"). Specifically, ArcelorMittal produces flat products, including sheet and plate, and long products, including bars, rods and structural shapes. It also produces pipes and tubes for various applications. ArcelorMittal sells its products primarily in local markets and to a diverse range of customers in approximately 150 countries, including the automotive, appliance, engineering, construction and machinery industries.

ArcelorMittal has a global portfolio of 12 operating units with mines in operation and development and is among the largest iron ore producers in the world. The Company has iron ore mining activities in Brazil, Bosnia, Canada, Kazakhstan, Liberia, Mexico, Ukraine, South Africa and through its joint venture in India and associate in Canada (Baffinland). The Company has coal mining activities in Kazakhstan. ArcelorMittal’s main mining products include iron ore lump, fines, concentrate, pellets, sinter feed, metallurgical coals including hard and weak coals.

This report includes net debt, gearing and operating working capital, which are non-GAAP financial measures. ArcelorMittal believes net debt, gearing and operating working capital to be relevant to enhance the understanding of its financial position and provide additional information to investors and management with respect to the Company's operating cash flows, capital structure and credit assessment. The Company’s guidance as to 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 measures should be read in conjunction with and not as an alternative for, ArcelorMittal's financial information prepared in accordance with IFRS. Such

non-GAAP measures may not be comparable to similarly titled measures applied by other companies. The following discussion and analysis should be read in conjunction with the Company's consolidated financial statements and related notes appearing in the Company's annual report for the year ended December 31, 2022 and the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2023 included in this report.

Corporate and other information

ArcelorMittal is a public limited liability company (société anonyme) that was incorporated for an unlimited period under the laws of the Grand Duchy of Luxembourg on June 8, 2001. ArcelorMittal is registered with the Luxembourg Register of Commerce and Companies (Registre du Commerce et des Sociétés) under number B 82.454.

Investors who have any questions or document requests may contact: investor.relations@arcelormittal.com.

The mailing address and telephone number of ArcelorMittal’s registered office are:

ArcelorMittal,

24-26 boulevard d’Avranches,

L-1160 Luxembourg,

Grand Duchy of Luxembourg,

Telephone: +352 4792-1.

Key factors affecting results of operations

The steel industry, and the iron ore and coal mining industries, which provide its principal raw materials, have historically been highly cyclical. They are significantly affected by general economic conditions, consumption trends as well as by worldwide production capacity and fluctuations in international steel trade and tariffs. This is due to the cyclical nature of the automotive, construction, machinery and equipment and transportation industries that are the principal consumers of steel. A telling example of the industry cyclicality was the sharp downturn in 2008/2009 after several strong years, which was a result of the global economic crisis. Similarly, the COVID-19 pandemic caused a sudden and sharp decline in economic activity and steel consumption on a global scale during 2020 in the Company's core developed markets, followed in 2021 by a significant recovery in certain industries, constrained to some extent by supply chain issues. In 2022, the global economy was adversely affected by supply chain issues, high inflation, consequential tightening of monetary policy and Russia’s invasion of Ukraine (itself aggravating inflationary pressures, particularly in the energy sector). All these shocks weighed on growth in ArcelorMittal’s core developed markets (EU, U.S.), especially. During the first half of 2023, resilient demand and less destocking in the Company's core markets led to both apparent demand and steel prices increasing from the low levels seen during the second half of 2022.

The sharp global recession in 2020 significantly reduced global demand for steel but the impact on demand was not prolonged, with output in developed markets rebounding strongly during the second half of 2020. Steel demand rebounded further during the first half of 2021 as developed economies reopened but despite continued strong consumer demand for goods and robust order levels at manufacturers, output (especially automotive) was constrained by supply bottlenecks in the second half of 2021. The inability of steel end-users to raise output due to supply chain issues led to weaker than expected real steel demand in the Company’s core markets and to steel inventory increasing through the supply chain. This high level of inventory began to weigh on pricing during 2022, despite the temporary support from supply disruption due to the war in Ukraine. This was particularly true in the EU where the increase in energy costs, exacerbated by the fear of the need for gas rationing, negatively impacted real demand as the European economy slowed considerably in the second half of 2022. While the economy and underlying real demand were stronger in the U.S. during the first half of 2022, the Federal Reserve raised interest rates aggressively to slow growth and dampen heightened inflationary pressure. Although economic growth has been stronger than expected during the first half of 2023, the Company expects the

U.S. to experience a mild recession into 2024, due to a lagged impact of tighter credit conditions and elevated interest rates on consumer demand, with declining output of interest rate sensitive sectors (e.g. construction). The European market heavily affects the Company's prospects and while in Europe output held up better than expected over winter 2022/23 as the risk of energy rationing subsided, there are still significant risks to the economic outlook. Economic growth at best stagnated during the first half of 2023 and recently sentiment has begun to weaken again, especially across manufacturing and construction sectors that drive steel demand, as the European Central Bank responds to high inflation with significant increases to policy rates. However, automotive demand has held up better, as weakening underlying demand was overwhelmed by a rebound in supply following shortages through 2021/22, leading to rise in output during the first half of 2023. Further offsetting these negative trends, steel consumption is expected to continue to be supported in the U.S. by the American Jobs Plan (“AJP”) and the Inflation Reduction Act (“IRA”) and in the EU by the Next Generation EU (“NGEU”) stimuli plans over the next few years.

Despite the Company’s sales and profitability being significantly affected in developing markets in 2020, similar to developed markets, vaccination and strong past fiscal stimulus supported a significant recovery in underlying steel demand. Demand in some markets, such as Brazil and Turkey, rebounded strongly during the first half of 2021, to well above pre-pandemic levels, before reverting back to trend during the second half of 2021. As a result of above trend economic and steel demand growth in 2021, many economies suffered from high inflation, which began to impact consumer spending in 2022. In Brazil, interest rates were raised sharply throughout 2022 to a peak of 13.75%, to combat high inflation, and steel demand declined over 10% year-on-year in 2022 as real demand weakened and as steel users reduced excessive inventory levels. While many emerging markets are better placed to deal with crises than in the past, economic risks remain high in 2023 for many countries including sovereign debt sustainability in Brazil and external foreign currency debt risk in Turkey. This is especially true against a backdrop of tightening external financing conditions, concerns about global growth and weaker investor sentiment. In Brazil, the new government has relaxed the fiscal rule from 2024, adding to downside risks of a public debt crisis in the medium-term. In Turkey, during the first half of 2023, the lira has depreciated by more than 20% against the U.S. dollar, forcing the central bank to increase interest rates to 17.5% in July 2023 to limit inflationary pressure from the weaker exchange rate. The risk remains to the downside of further depreciation in the lira.

Historically, demand dynamics in China have also substantially affected the global steel business, mainly due to significant changes in net steel exports. Despite the COVID-19 pandemic Chinese steel demand surprised markets with an increase in 2020, growing around 9% year-on-year. However, policy support was quickly withdrawn, and steel demand weakened sharply in 2021, declining year-on-year in the second half of the 2021. While the combination of high vaccination and booster rates and lower severity of COVID-19 variants led to an ending of restrictions in most countries during 2022, China was a major exception. Lower vaccination rates, especially among the elderly, a less developed health service and strict adherence to a dynamic zero-COVID policy resulted in significant lockdowns in many cities, with Shanghai suffering a two-month citywide lockdown in April and May 2022. This not only impacted internal supply chains but also exacerbated the downturn in the real estate market, with housing sales and new housing starts down by 26% and 44% year-on-year, respectively, in the second half of 2022. This sharp reduction in underlying real demand, coupled by a smaller reduction in steel production, led to a push for more exports before a weakening of global steel demand led to net Chinese steel exports falling back during the second half of 2022. An earlier-than-expected re-opening saw economic growth accelerate to 4.5% year-on-year in the first quarter of 2023, driven by transport, retail and hospitality industries. Steel demand was also supported by strong growth in infrastructure, due to the front-loading of special government bonds issued to local governments. However, the reopening rebound stalled during the second quarter of 2023 as private firms have little appetite for expansion, leaving investment spending increasingly dependent on the state and underscoring the need for further policy support. Housing sales, which temporarily rebounded after re-opening, are now falling again and while cuts to interest rates are expected to support sales at the margin during the second half of 2023, developers will likely remain cautious, concentrate on completing stalled projects, with little likelihood of a cyclical recovery of the real estate market before 2024. The renewed weakness of Chinese steel demand, coupled with ample domestic supply has seen net Chinese finished flat steel exports increase from 3.8 million tonnes per month during January and February 2023 to 5.7 million tonnes during April and May 2023. Moreover, the Company continues to expect Chinese steel demand to decline in the medium-term, as infrastructure spending has been front-loaded and real estate demand is expected to weaken structurally due to lower levels of rural-urban migration. If the expected decline in demand does not coincide with renewed capacity closures, this would likely lead to further increases in steel exports from China and have a negative impact on global steel prices and spreads.

Unlike many commodities, steel is not completely fungible due to wide differences in its shape, chemical composition, quality, specifications and application, all of which affect sales prices.

Accordingly, there is still limited exchange trading and uniform pricing of steel, whereas there is increased trading of steel raw materials, particularly iron ore. Commodity spot prices can vary, which causes sales prices from exports to fluctuate as a function of the worldwide balance of supply and demand at the time sales are made.

ArcelorMittal’s sales are made based on shorter-term purchase orders as well as some longer-term contracts to certain industrial customers, particularly in the automotive industry. Steel price surcharges are often implemented on steel sold pursuant to long-term contracts to recover increases in input costs. However, longer term contracts with low steel prices will not reflect increases in spot steel prices that occur after contract negotiation. Spot market steel, iron ore and coal prices and short-term contracts are more driven by market conditions.

One of the principal factors affecting the Company’s operating profitability is the relationship between raw material prices and steel selling prices. Profitability depends in part on the extent to which steel selling prices exceed raw material prices, and specifically the extent to which changes in raw material prices are passed through to customers in steel selling prices. Complicating factors include the extent of the time lag between (a) the raw material price change and the steel selling price change and (b) the date of the raw material purchase and of the actual sale of the steel product in which the raw material was used (average cost basis). In recent periods, steel selling prices have not always been correlated with changes in raw material prices, although steel selling prices may also be impacted quickly due in part to the tendency of distributors to increase purchases of steel products early in a rising cycle of raw material prices and to hold back from purchasing as raw material prices decline. With respect to (b), as average cost basis is used to determine the cost of the raw materials incorporated, inventories must first be worked through before a decrease in raw material prices translates into decreased operating costs. In some of ArcelorMittal’s segments, in particular Europe and NAFTA, there are several months between raw material purchases and sales of steel products incorporating those materials. Although this lag has been reduced in recent years by changes to the timing of pricing adjustments in iron ore contracts, it cannot be eliminated and exposes these segments’ margins to changes in steel selling prices in the interim (known as a “price-cost squeeze”). This lag can result in inventory write-downs, as occurred in 2015, 2019, and the third quarter of 2022 due to sharp declines in steel prices. In addition, decreases in steel prices may outstrip decreases in raw material costs in absolute terms, as has occurred numerous times over the past few years, for example throughout 2019 as well as the fourth quarters of 2015, 2016 and 2018. In the fourth quarter of 2020 and through the first half of 2021, global steel prices surged toward historical highs in many markets, due in part to increased demand and a slower increase in supply, resulting in increased steel spreads and higher profitability.

During the second half of 2021, despite strong underlying demand, a lack of inputs (e.g. semi-conductors) caused real steel demand to stagnate while steel supply continued to increase. This led steel prices to decline, faster than any decline in raw material costs, leading to spread compression. During the first half of 2022, this was partially offset by an increase in the average price of annual automotive contracts and temporary steel price support due to disruption to supply from the war in Ukraine. Subsequently, steel spreads, especially in Europe, were compressed by elevated energy prices, particularly gas, and destocking at stockists and end-users through the second half of 2022, adversely impacting the Company's deliveries and profitability. Steel prices declined faster than raw material prices in both the third and fourth quarters of 2022, with significant compression of spreads. However, the fourth quarter of 2022 was the peak of the destocking cycle and inventory levels across ArcelorMittal’s main markets fell to low levels. As destocking began to end during the first quarter of 2023, apparent demand improved from the lows of the fourth quarter of 2022 and led to a recovery in steel prices and spreads. However, with economic growth weakening across the Company's core developed markets, due to the lagged impact of interest rate rises, elevated steel prices and spreads have unwound during the second quarter of 2023. As occurred in 2022, the decline in spot steel prices during the second quarter of 2023 will mainly impact the results of the third quarter of 2023 due to the significant lag between transactions and deliveries, especially for flat products.

The Company’s operating profitability has been particularly sensitive to fluctuations in raw material prices. Volatility on steel margins aside, the results of the Company’s Mining segment (which sells externally as well as internally) are directly impacted by iron ore prices. Robust recovery of steel demand and production following the initial shocks of the COVID-19 pandemic continued in the first quarter of 2021 with iron ore prices rising further to an average of $167/t. In the second quarter of 2021, the seaborne iron ore price jumped to over $200/t as rising steel production in China coincided with tight supply, significantly increasing the profitability of ArcelorMittal’s mining operations. Since mid-2021, iron ore prices have fallen back to an average of $111/t in the fourth quarter of 2021 as Chinese crude steel production declined. Iron ore prices then rebounded during early 2022 on supply disruption, with prices rising to over $150/t in March/April before falling back to an average of $101/t in the second half of 2022 and a low of $81/t as Chinese production was cut in response to low domestic real demand and rising inventory levels. Although iron ore prices rebounded to over $120/t during the first quarter of 2023, they fell back during the second quarter of 2023 to an average of $111/t. Over the medium term, if as expected Chinese steel

demand weakens, this would lead to further falls in iron ore prices and would negatively impact ArcelorMittal’s revenues and profitability.

Economic environment

The global economy remains in a precarious state amid the protracted effects of the overlapping negative shocks of the pandemic, the Russian invasion of Ukraine, and the sharp tightening of monetary policy to contain high inflation. During the first half of 2023, growth in several major economies was stronger than envisaged at the beginning of the year, with faster-than-expected economic reopening in China and resilient consumption in the U.S. However, global financial conditions tightened because of past policy rate hikes and, to a lesser extent, uncertainty about financial instability as many banks experienced substantial unrealized losses due to the sharp rise in policy interest rates. Concerns about the viability of balance sheet of some banks led to depositor flight and market volatility in the U.S. and Europe earlier in the year, which were stemmed by a swift and extensive policy response. Financial markets remain highly sensitive to evolving expectations about the future path of interest rates of major central banks. Although inflation pressures persist, global headline inflation has been decelerating as a result of base effects, abating supply chain pressures, and falling commodity prices. However, core inflation in many countries remains elevated, and inflation is above target in almost all inflation-targeting economies. Energy prices eased considerably, especially in Europe, since their peak in 2022 on account of weaker global growth prospects and a warmer-than-expected Northern winter, which reduced natural gas and electricity consumption. However, the drag on activity from tighter monetary policy is increasingly apparent, particularly in more interest-rate-sensitive activities such as business and residential investment, including construction. Growth over the rest of 2023 is set to slow substantially as it is weighed down by the lagged and ongoing effects of monetary tightening, and more restrictive credit conditions.

In the U.S., real GDP growth eased in the first quarter of 2023, growing at an annual rate of 1.3% compared with 2.6% in the fourth quarter of 2022, supported by relatively robust consumption as consumer spending was supported by excess savings built-up over the pandemic. Housing investment declined further, partly reflecting the tightening in financial conditions due to the impact of past interest rate rises. While labour markets remained tight during the first half of the 2023, with continued robust aggregate employment gains, this has been less apparent in interest-rate sensitive sectors such as construction and manufacturing. Recently, there have been signs of gradual easing. Indeed, despite remaining elevated, nominal wage growth has moderated slightly as job openings have continued to decline. Headline inflation decreased to 3.0% in June 2023 (from 9.1% peak in June 2022), but inflationary pressure remains as core inflation (excluding volatile items such as food and energy) was still at 4.9% in June 2023 (6.6% peak in September 2022).

This is due to continued price pressure in services as consumption patterns rotated away from goods, with core services inflation of 6.2% in June 2023 (from above 7% in early 2023) while core goods inflation has fallen below 2.0% (from a peak of more than 10.0% in early 2022). Persistent inflationary pressure has led to continued tightening of monetary policy, with the Federal Reserve increasing interest rates to a 5 to 5.25% range, from 0 to 0.25% at the beginning of 2022. The collapse of several regional banks in March 2023 prompted the Federal Reserve to introduce a new facility to provide short-term liquidity support to financial institutions. Nonetheless, surveys subsequently noted a tightening in bank lending standards amid increased uncertainty and concerns about liquidity. The lagged impact of monetary policy tightening along with a further increase in the federal funds rate is expected to weigh on economic growth, particularly during the second half of 2023.

In EU27, after a 0.1% decline in the fourth quarter of 2022 (quarter-on-quarter) due to the impact of high energy costs, GDP growth in the first quarter of 2023 improved, growing 0.2% quarter-on-quarter. The economic fallout from Russia’s invasion of Ukraine since February 2022 has been contained, as direct trade with Russia was low and was further reduced by the ban on Russian seaborne crude oil imports. Though energy costs remain higher than pre-invasion levels, negatively impacting energy-intensive industries (e.g. chemical sector), Europe avoided a more severe scenario of a severe and widespread curtailment across industry in the event of a lack of available gas. This was due to reduced demand driven by a steep drop in consumption, due to mild weather conditions during the winter, coupled with significant substitution of gas by industrial companies. At the same time, continued inflows of liquified natural gas into Europe, led to seasonally elevated levels of inventory post-winter, which drove down gas prices. As a result, headline inflation in the eurozone, continued to moderate, to 5.5% in June 2023 from its peak of 10.5% in October 2022, but core inflation (excluding food and energy) remains more persistent at 6.8% in June 2023, only marginally lower than the 7.6% peak in March 2023. Labour markets remain tight, with the eurozone unemployment rate at an historic low of 6.5% in May 2023, and rising wage growth in most countries. As a result of persistent inflation and to reduce tightness in labour markets, the European Central Bank ("ECB") raised the main refinancing interest rates to 4% from 2.5% at the beginning of 2023. While the headwinds from the energy crisis have eased, economic activity will continue to be impacted by the lagged effect of high and rising interest rates, during the second half of 2023.

In China, GDP growth rebounded in the first quarter of 2023 to 4.5% year-on-year. The rebound reflects the lifting of COVID-19 related restrictions. In-person services, including catering,

accommodation, tourism and entertainment, which were restricted during lockdowns, rebounded strongly. However, the strong rebound in service activity was offset by a continuing slump in the real estate market. Soon after re-opening there was a strengthening in home sales, but weak confidence has seen house prices fall and sales weaken in May and June 2023. In addition, many construction activities were driven by policy successes in spurring housing completions, as housing starts and overall sentiment towards the sector has yet to pick up meaningfully. Property investments fell year-on-year during the first half of 2023 with broad-based declines across residential, office, and commercial property investment. While growing concerns about the health of China’s recovery led to interest rate cuts and rumors of further support for property demand (e.g. reduced down payments, relaxing purchase restrictions), with developers’ finances constrained, any recovery in new starts and real estate construction activity will lag at least six months behind sales. During early 2023, the main upside to steel demand came from the front-loading of infrastructure spending. However, with many provinces financially strained by lower land sales, infrastructure spending is dependent upon additional special local government bonds being issued during the second half of 2023 to stimulate growth.

In Brazil, while the economy continued to grow by an estimated 2.0 to 2.5% year-on-year during the first half of 2023 (first quarter +3.4% year-on-year), this was mainly driven by agricultural sectors (+18% year-on-year), while industry stagnated. Interest rates have remained at 13.75% since the second half of 2022 but with inflation having fallen back to 3.4% in June 2023 (from the peak of more than 12% in mid-2022), the Company expects interest rates to be reduced from August 2023. While the Brazilian government’s fiscal stimulus will support economic activity in the short-term, this increases downside risks in the medium-term by increasing the risk of a public debt crisis as the government is now running a primary deficit, rather than the surplus it needs to keep sovereign debt on a sustainable path. While reforms to simplify the tax system have the potential to boost productivity and economic growth, the new regime would be phased in between 2026-32, so near-term benefit would be minimal.

In Turkey, economic activity was negatively impacted in the first quarter of 2023 by a devastating earthquake, which not only had a humanitarian impact but led to retail sales and industrial production falling sharply in February 2023. However, there was a rapid recovery in activity as reconstruction work gathered momentum and trade and industrial production in the earthquake-affected region have been partly restored. Overall GDP increased by 3% year-on-year in the first half of 2023. However, as the government under Erdogan has stepped back from defending the lira, having depleted their foreign exchange reserves, the lira has depreciated by more than 10%, adding downside risks to growth with the Turkish lira continuing to be vulnerable to further sharp falls over the coming months.

The first half of 2023 has seen slower growth in global manufacturing output, as order backlogs shrink, and demand was negatively impacted by high inflation and rising interest rates leading to lower new orders. Globally, growth in manufacturing output slowed to just over 1% year-on-year during the first half of 2023, from approximately 3.0% growth in 2022. Growth in manufacturing output was largely supported by China as the economy reopened and manufacturing output increased by 3.7% year-on-year, offsetting a year-on-year decline in world ex-China. In world ex-China, high inflation and subsequent monetary policy tightening led to weaker consumer demand for goods, particularly in developed markets. Indeed, manufacturing output in developed markets declined by approximately 1.5%, while developing ex-China outputs increased by almost 2.0% year-on-year during the first half of 2023. While output in the EU and the U.S. has been resilient and broadly stable year-on-year during the first half of 2023, the decline in manufacturing output in developed markets was primarily driven by a large year-on-year decrease in South Korea (9%) and Taiwan (18%) due to reduced output of semiconductors and electronic components in both countries. In developing ex-China, the year-on-year increase in manufacturing output in the first half of 2023 was driven by strong growth in India (4.5%), Russia (5.5%), offset by weaker output in South America (2%) and stagnation in Turkey. For the second half of the 2023, downside risks to industrial sectors in the EU and the U.S. remain high, as the lagged impact of high interest rates have not yet fully fed through to both economies.

In 2022, global apparent steel consumption (“ASC”) decreased by approximately 2.5% year-on-year, as stringent lockdowns in China caused ASC in China to decline by almost 3% year-on-year. World ex-China ASC decline by approximately 2% year-on-year, despite resilient real demand for steel, as steel production sharply declined during the second half of 2022 as the inventory cycle turned toward a sharp destock. Earlier-than-expected reopening in China in late 2022, coupled with the government’s front-loading of infrastructure spending, saw ASC grow strongly during the first few months of 2023, supported by stronger real demand. However, since then, the continued weakness in the real estate sector, has caused real steel demand to decline, pushing ASC to decline by 1% year-on-year in China during the first half of 2023. In ex-China, resilient real demand, accompanied by a recovery in steel production due to the need to rebuild inventory, resulted in an increase in ASC from the weak levels of late 2022, though ASC was still lower than in the first half of 2022. Indeed, ASC in EU27 in the first half of 2023 was approximately 15% higher than in the second half of 2022, with a stronger increase in flat products than long products, though overall ASC during the first half of 2023 was

still down by 10% year-on-year. In the U.S., ASC in the first half of 2023 was broadly stable at a similar level as in the second half of 2022, though still 7% lower year-on-year. In Brazil, ASC in the first half of 2023 declined slightly by approximately 1.5% year-on-year, with flat products growing marginally year-on-year, offset by a decline in long products. In India, steel consumption rose by almost 10% year-on-year during the first half of 2023, with stronger growth in longs (+16% year-on-year), than flats (+2% year-on-year).

Source: GDP and industrial production data and estimates sourced from Oxford Economics July 13, 2023. ASC data for U.S. from AISI to May 2023, estimates for June 2023. ASC data for Brazil from Brazilian Steel Institute to May 2023, estimated for June 2023. ASC data for EU28 from Eurofer to April 2023, estimates for May and June 2023. ASC data for India from Joint Planning Committee to May 2023, estimates for June. All estimates are internal ArcelorMittal estimates.

Developed Markets includes EU27 + UK, Norway, Switzerland, Canada, US, Developed Asia (Japan, S.Korea and Taiwan), Australia and New Zealand. Developing ex China is the remaining countries outside Developed Markets and China.

Steel production

After world steel production stagnated (-0.1% year-on-year) in 2020 at 1.86 billion tonnes as a result of demand disruption caused by the global COVID-19 pandemic, production increased by 4% year-on-year to 1.93 billion tonnes in 2021, as vaccination progress allowed economies to reopen and the global economy to recover. In China, steel production in 2021 declined by 3% year-on-year to 1.03 billion tonnes from 1.06 billion tonnes according to the World Steel Association, due to tighter restrictions on the real estate sector and an environmental policy to cap output of heavy industry. However, this was more than offset by a sharp rebound in world ex-China production, that increased by more than 100 million tonnes in 2021 (13% increase year-on-year), to over 900 million tonnes, a historical high, and 4% above 2019 pre-pandemic levels. However, in 2022, global production decreased by 5%, to 1.84 billion tonnes, driven by lower production in world ex-China, where production fell by approximately 8%, whereas production only declined by approximately 3% in China. In world ex-China, the decline in steel production was mainly during the second half of 2022, where production fell by more than 10% year-on-year, significantly more than the approximately 4% decline during the first half of 2022. This was mainly due to production cuts in developed markets, where production fell by approximately 14% in the second half of 2022, as a result of high energy costs and high steel inventory amidst subdued demand. Developing ex-China was down by 8% year-on-year in the second half of 2022, mainly due to 25% year-on-year decline in CIS. As a result, ex-China steel inventory was low at the beginning of 2023, supporting production rebound during the first half of 2023, with production down 6% year-on-year in the first quarter but only 2% lower in the second quarter. In China, for 2022, steel demand was negatively impacted by lockdowns as the government pursued a “dynamic-zero” COVID-19 policy to curb infections, exacerbating the downturn in the real estate market, leading steel production to decline by 3% year-on-year.

With an early reopening in December 2022, steel production in China continued to increase as demand recovered, rising by approximately 2% year-on-year during the first half of 2023. Overall, global steel production in the first half of 2023 declined marginally, down 1% year-on-year.

After weakening during the first half of 2022, steel production in China started to pickup during the second half of 2022 and continued to rise further during the first half of 2023 after COVID- 19 related restrictions were relaxed toward the end of 2022. While steel demand from real estate sectors remained weak, this was offset by higher infrastructure expenditure supported by front-loaded special government bonds. In addition, rising steel production led to a surge in Chinese net steel exports. While finished steel's net exports averaged 5.5 million tonnes per month in January and February 2023, this increased to 7.4 million tonnes per month between March and June 2023.

In developed markets, steel production fell sharply during the second half of 2022, particularly in the fourth quarter of the year, before picking up in the first half of 2023. In Europe, voluntary production cut in response to high energy costs led to steel production in EU27 and in UK averaging 10.3 million tonnes per month in the second half of 2022, down 20% year-on-year. Production increased during the first half of 2023, to an average of 11.1 million tonnes. In the U.S., steel production also declined during the second half of 2022, though not as significantly as in Europe, with steel production averaging 6.6 million tonnes – down approximately 10% year-on-year. During the first half of 2023, the U.S. production increased slightly to 6.6 million tonnes per month but still down 3% year-on-year. In Developed Asia, production also fell by 11% year-on-year during the second half of 2022, partly due to flooding that caused a significant production shutdown in South Korea. With steel production in South Korea later recovered, production in Developed Asia increased to 14.6 million tonnes per month during first half of 2023, from 14.2 million tonnes during the second half of 2022. These regions together account for more than 50% of World ex-China production.

In Developing ex-China, production in the first half of 2023 increased to 36.7 million tonnes per month, up from 35 million tonnes during the second half of 2022. This is due to continued growth in Indian production (11.2 million tonnes from 10.3 million tonnes in the second half of 2022) and some recovery in production in CIS region (7.1 million tonnes vs. 6.6 million tonnes in the second half of 2022), according to data from the World Steel Association. Elsewhere, production stagnated at low levels and down year-on-year (Turkey: -16%, Brazil: -8.1%, ASEAN: -9%), the main exception being the Middle East where

steel production rose by 7% year-on-year during the first half of 2023.

Source: Global steel production data above is for 61 countries for which monthly crude steel production data is published by the World Steel Association, which account for 97% of world production. Production data is available until June 2023.

61 Countries Include: Austria, Belgium, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Spain, Sweden, United Kingdom, Turkey, Norway, Canada, Mexico, United States, Argentina, Brazil, Chile, Colombia, Ecuador, Peru, Venezuela, Egypt, South Africa, Libya, Kazakhstan, Russia, Ukraine, Iran, Saudi Arabia, United Arab Emirates, Japan, South Korea, Taiwan, China, India, Pakistan, Thailand, Vietnam, Australia and New Zealand.

Steel prices

Flat products

The downward spiral that captured European hot rolled coil (“HRC”) prices throughout the second half of 2021 reached its bottom in January 2022, at €927/t in Northern Europe and €837/t in Southern Europe. Afterwards, prices started to increase until the peak of the year in April 2022 (at €1,346/t in Northern Europe and €1,279/t in Southern Europe). Overall, the first quarter of 2022 averaged at €1,070/t for HRC price in Northern Europe (a €82/t increase quarter on quarter) and at €1,005/t in Southern Europe (a €108/t increase quarter on quarter). The price increase in the first quarter of 2022 was driven by the effects of the war in Ukraine (started at the end of February 2022), which led to a temporary halt of material supplies from Russia and Ukraine, as well as an increase in energy costs given the risk of oil and gas supply reduction.

Following the peak in prices reported in April 2022, the trend in price evolution started reversing in Europe (from May onwards towards almost the end of the year). The second quarter of 2022 averaged above the first quarter pricing, at €1,115/t in Northern Europe (up by €45/t quarter on quarter) and at €1,050/t in Southern Europe (up by €45/t). Thus, average HRC prices for the first half of 2022 were at €1,093/t in Northern Europe and at €1,028/t in Southern Europe.

The soaring inflation rate in Europe, in particular driven by higher energy costs, recessionary concerns along with weakening demand and uncertainty caused by the Russia-Ukraine war, all contributed to falling steel prices throughout the second half of 2022. In the third quarter of 2022, Northern European HRC reached €789/t, which was a €326/t drop as compared to the second quarter of 2022; the Southern European HRC dropped to €757/t, a €293/t decrease quarter on quarter. The decline continued through the fourth quarter of 2022, when the two price references settled at €653/t and €651/t, respectively, indicating further quarter on quarter decline by €136/t and €106/t, respectively. The averages for the second half of 2022 were €721/t for Northern European HRC and €704/t for the Southern European HRC.

After the 2022 yearly lows reported in November (at €628/t in Northern Europe and €619/t in Southern Europe), European HRC prices started to turn around in early 2023. The first quarter of 2023 registered prices that were steadily increasing month over month. Northern Europe HRC price started in January 2023 at €731/t and ended the quarter, in March 2023, at €843/t (an increase of €112/t), while Southern Europe HRC started the year at €718/t in January 2023 and moved up by €99/t, reaching €817/t by March 2023. Thus, the quarterly price averages for HRC were at the level of €786/t in Northern Europe (strengthening by €133/t quarter on quarter) and €767/t in Southern Europe (up by €116/t quarter on quarter).

The second quarter of 2023 followed a similar trend to the one registered a year before. In the first half of 2023, HRC prices peaked in April 2023 for both Northern and Southern Europe, at respectively €843/t and €836/t, only to start declining afterwards. HRC prices in Northern Europe have dropped in the second quarter of 2023 by €22/t quarter on quarter, reaching a low of €764/t, while HRC prices in Southern Europe dropped by €30/t, down to €737/t in the second quarter of 2023.

The decline in the U.S. domestic Midwest HRC price, which started in October 2021, continued until February 2022 (bottoming out at $1,214/t). The first quarter of 2022 averaged at $1,373/t, $600/t lower quarter on quarter. This downward pressure on prices was driven by customers’ decisions to sit on the sidelines, postponing purchases and depleting inventories, further deepening the price correction. Various industries (automotive, appliances) were facing constraints in parts’ supplies, as well as labor force shortages, generating weakening demand.

After the low of February, the second quarter of 2022 experienced an increase in U.S. domestic Midwest HRC price, peaking in April 2022 at $1,617/t. This price increase was assumed to be a repercussion of the war in Ukraine, amid fears of disruptions in supply chains. The second quarter of 2022 averaged at $1,434/t, up by $61/t quarter on quarter, which brought the first half of 2022 to an average of $1,404/t.

After the April increase, the U.S. domestic Midwest HRC price declined throughout the rest of the year, bottoming in November 2022 at $715/t, while December 2022 closed the year at $749/t. The slight increase in U.S. domestic Midwest HRC price at the end of the year might have been influenced by expectations that China would relax its COVID-19 nationwide restrictions, which was assumed to improve consumer demand. In the second half of 2022, the U.S. domestic Midwest HRC price averaged at $840/t, lower by $564/t than the first half of 2022.

In early 2023, domestic HRC price in the U.S. continued on an upwards trend, with the first quarter averaging at $1,021/t (a quarter on quarter increase of $254/t). In the second quarter, the

U.S. domestic HRC price registered its peak across the first six months of the year, in April 2023 at $1,291/t. In the following May and June 2023, the HRC price started deteriorating. The average for the second quarter was at $1,161/t. The increase in the U.S. HRC price from the low of November 2022, at $715/t, up to till the peak of April 2023, has reached $576/t. The price evolution throughout the first half of 2023 was strongly influenced by the limited domestic supply, particularly given the lower import levels, which have driven lead times to be longer than typical, but also the occurrence of several domestic mill outages (planned for maintenance activity).

In China, after the November 2021 low of $666/t, the HRC price VAT excluded started gradually to rehabilitate in early 2022, reaching a level of $717/t, VAT excluded, in March 2022 (the highest reported level for 2022). In the first quarter of 2022, the Chinese HRC price averaged at $701/t, VAT excluded, $2/t higher quarter on quarter. From April onwards, the HRC price showed a month-on-month decline till November 2022, leading to the following quarterly averages: $650/t, VAT excluded, in the second quarter of 2022 ($51/t decrease quarter on quarter), $512/t, VAT excluded, in the third quarter of 2022 ($138/t decrease quarter on quarter) and $488/t, VAT excluded, in the fourth quarter of 2022 ($24/t decrease quarter on quarter).

The HRC price performance in China has been deeply affected by the multiple COVID-19 pandemic outbreaks which paralyzed various parts of the country from March 2022 onwards. The Chinese economy has been crippled by disrupted manufacturing activity, by paralyzed distribution in the supply chains, and subsequent weakened demand, all following the lockdowns imposed by the end of the first quarter of 2022. However, by the end of 2022, given expectations that lockdown requirements were to be lifted (following societal pressure), a slight increase in the Chinese HRC price was recorded in December 2022, up $43/t month on month, to $514/t, VAT excluded. The half yearly averages reached $676/t in first half of 2022 and $500/t in the second half of 2022, VAT excluded.

The price increase reported in the last month of 2022 continued throughout the first quarter of 2023, when the Chinese HRC price, VAT excluded, reached an average of $551/t (up by $63/t quarter on quarter). The following quarter recorded a reversal of trend, HRC pricing in China weakening to $499/t (down by $52/t quarter on quarter). In the early months of 2023, steel demand in China (particularly from real estate and infrastructure sectors) was still slow in building momentum to support stronger price increases. At the same time, on the supply side, the recovery in domestic steel production was stronger than the recovery in demand, thus generating market imbalances. Price-wise, the first half of 2023 averaged at $525/t, strengthening by $25/t as compared to the second half of 2022.

Long Products

In 2022, in the first quarter of the year, prices continued to increase in Europe, with medium sections averaging at €1,172/t and rebar at €928/t. This upward trend continued until April 2022, when each of the two price references hit the yearly peak at €1,500/t and €1,313/t, respectively. As in the case of European HRC price fluctuation, medium sections and rebar pricing in Europe was affected by the war in Ukraine, which altered and delayed the standard flow of semi-finished and finished steel products in Europe, pushing for buyers’ panic purchases in the early part of 2022.

From May onwards, throughout the rest of the year, medium sections and rebar prices in Europe started weakening, with both references hitting the bottom in December 2022, at €985/t and €749/t, respectively. The global supply disruptions caused by the war, the looming fears of a recession in Europe driven in part by soaring energy costs, and weakening domestic demand, all pushed medium sections and rebar pricing on a downward spiral through most of 2022. The quarterly averages of the two price references were thus in a free-fall since the second quarter of 2022, when they averaged at €1,426/t for medium sections and €1,220/t for rebar, ending the fourth quarter of 2022 at €1,072/t (a €354/t decrease) and at €814/t (a €406/t decrease). Prices in the first half of 2022 were reported at €1,299/t for medium sections and at €1,074/t for rebar, and at €1,141/t for medium sections and €898/t for rebar in the second half of 2022.

In the first half of 2023, the European prices for medium sections and rebar continued their downward trend (started in the second quarter of 2022), weakening month by month, and reaching in June 2023 half-yearly lows of €820/t and €593/t, respectively. Thus, the medium sections price slid over the first half of 2023 by €168/t, from the January 2023 level of €988/t; while the rebar price weakened by €158/t over the same period, being in January at €751/t.

Overall, the European rebar market was showing rather unstable signs throughout the first half of 2023, with an imbalance between demand and supply of steel. In spite of energy and shipping costs gradually coming down in Europe, lowering pressure on mills, consumption on the market remained at low levels, unable to sustain pricing. Prices in the first quarter of 2023 averaged at €964/t for medium sections and at €722/t for rebar, while in the second quarter, these averages dropped to €889/t for medium sections and €649/t for rebar, a decrease of €75/t and €73/t, respectively.

In the first half of 2022, the Turkish rebar price for export gradually expanded to a high of $936/t FOB in April 2022, a level above all previously reported prices since 2008, and the peak price of 2022. From May onwards, Turkish rebar reference prices started to decline, reaching a first “seasonal” low in August 2022, at $644/t FOB, and then one more low in November, at $637/t FOB. The slight increase in pricing during September and October was a direct result of increasing manufacturing costs, after the latest increase in power and gas prices domestically.

The Turkish rebar price for export increased in the first half of 2022, mainly driven by rising component costs such as the imported HMS 80/20 scrap as raw materials (which peaked in March 2022 at $641/t), as well as soaring electricity costs. On its downward trend from May 2022, Turkish rebar for export was strongly impacted by the war in Ukraine, as well as by the globally softening demand. The Turkish market had to absorb increased volumes of Russian material, Turkey being among the few global markets that did not have sanctions against Russia.

After a strong second quarter of 2022, when the Turkish rebar for export was reported at $808/t FOB ($13/t increase quarter on quarter), the subsequent periods went into decline, with the third quarter of 2022 reported at $665/t FOB and the fourth quarter of 2022 at $660/t FOB. Thus, the first half of 2022 reached an average of $802/t FOB and the second half of 2022 at $663/t FOB.

After the lows of November 2022 (at $637/t FOB), the Turkish rebar price for export started to gradually strengthen in the first quarter of 2023, reaching a peak value in March 2023, at $727/t FOB. The first quarter averaged at $708/t FOB, up by $48/t FOB over last quarter of 2022. From April onwards, Turkish rebar price for export reversed its upward trend, averaging in the second quarter at $637/t FOB, a decrease of $71/t quarter over quarter. The global demand recovery for steel products has not seen strong movement throughout the first half of 2023, given the extended looming fears of recessions in different parts of the world, as well as the inflationary struggles of economies.

Raw materials

The primary raw material inputs for a steelmaker are iron ore, coking coal, PCI, metallics (e.g., scrap), alloys, electricity, natural gas and base metals. ArcelorMittal is exposed to price volatility in each of these raw materials with respect to its purchases in the spot market and under its long-term supply contracts. In the longer term, demand for mineral raw materials is expected to continue to correlate closely with the steel market, with prices fluctuating according to supply and demand dynamics. Since most of the minerals used in the steel-making process are finite resources, their prices may also rise in response to any perceived scarcity of remaining accessible supplies, combined with the evolution of the pipeline of new exploration projects to replace depleted resources.

As for pricing mechanisms, since 2012, quarterly and monthly pricing systems have been the main type of contract pricing mechanisms. Regarding iron ore, spot purchase liquidity has reduced in recent years, specifically with the main Chinese customers covering a growing share of their needs through longer term contracts. The trend for using shorter-term pricing cycles has continued since 2020. Pricing is generally linked to market price indexes and uses a variety of mechanisms, including current spot prices and average prices over specified periods. Therefore, there may not be a direct correlation between market reference prices and actual selling prices in various regions at a given time.

Iron ore

In the first quarter of 2022, after an initial increase in seaborne iron ore prices to $161.65/t in early March mainly driven by bullish sentiment that Chinese steel production would ramp-up after the government announced a 5.5% GDP growth target for 2022 and stimulus packages targeted at the construction and infrastructure sectors, seaborne iron ore prices dropped to $136.19/t in mid-March following a sudden COVID -19 outbreak in China and the implementation of strict lockdowns.

In the second quarter of 2022, seaborne iron ore prices in China again rebounded to $160.69/t in early April driven by supply concerns due to low shipments and intensifying war between Russia and Ukraine. However, seaborne iron ore prices dropped to $108.98/t in June with collapsing market confidence due to a severely hampered Chinese economy with repeated lockdowns across the country. Steel demand has been deteriorating as a result of lukewarm downstream activities, historic high steel inventory levels both in mills and traders’ warehouses, and inclement weather conditions. Ex-China demand also weakened with rising inflation and the US Federal Reserve’s tightening monetary policy.

Seaborne iron ore prices further weakened to $95.02/t in early September 2022 due to China’s cross-country homebuyers’ mortgages boycott to protest developers’ failure to meet construction schedules, continuous COVID-19 pandemic lockdowns, disappointing GDP of the second quarter (0.4%) and harsh weather conditions. In late October 2022, seaborne iron ore prices fell to the lowest level of $79.06/t as the market feared that China would continue with its strict zero-COVID control. However, China started easing COVID control on December 8 and has managed COVID-19 as a Class B infectious disease since January 8, 2023, signaling a market reopening, which boosted market sentiment, pushing seaborne iron ore reference prices to $117.82/t at the end of December 2022.

In the first quarter of 2023, seaborne iron ore prices soared to a quarterly average of $125.28/t, an increase of $26.63/t as compared to the fourth quarter of 2022, primarily driven by boosted market sentiment after China announced lifting of COVID control on December 27, 2022. The market sentiment remained firm in China throughout the first quarter of 2023 due to strong demand recovery expectations in the second quarter of 2023 amid a slew of relaxing policies announced in the real estate sector and easing monetary policies. Meanwhile, the U.S. Central Bank also slowed its rate hike pace. Crude steel output during the first quarter of 2023 in China reached 264 million tonnes, an 18 million tonnes or 7% increase as compared to the first quarter of 2022, a new record despite weak fundamentals in steel industry with low downstream demand, high steel inventory and poor steel mills’ margins. On the other hand, iron ore seaborne supply for the first quarter of 2023 was sufficient, mainly due to benign weather in Australia. During the first quarter of 2023, seaborne iron ore imports in China surged to 294 million tonnes, a 26 million tonnes or 10% increase of as compared to the first quarter of 2022, a new record for this period.

In the second quarter of 2023, seaborne iron ore prices dropped to a quarterly average of $110.57/t, a $14.71/t decrease as compared to the fourth quarter of 2022 while China's stronger than expected recovery in GDP growth during the first quarter of 2023 was unsustainable and market participants turned to bearish mood.

However, China hot metal output level remains elevated during the same period. During the second quarter of 2023, average daily hot metal output was 2.43 million tonnes, a 2.3% increase year-on-year. Meanwhile, Chinese steel exports soared to 43.9 million tonnes during the first six months, a 10.4 million tonnes or 31% increase as compared to the first half of 2022, which largely absorbed the steel supply surplus. On the other hand, during the second quarter of 2023, average seaborne supply from Australia and Brazil increased by 1% as compared to the second quarter of 2022, adding pressure on iron ore prices.

Coking coal

In the first quarter of 2022, metallurgical coal prices reached historic highs and averaged at $487.09/t amid a faster than expected demand recovery, a tight global supply situation and an illiquid spot market. Australia was confronted with both heavy rainfall (which affected production and logistics in Queensland), and a severe rise in COVID-19 cases, which disrupted workforce at mining operations. In addition, the Russian invasion of Ukraine sent prices to new records in March 2022 as the new uncertainty over coal shipping has caused panic in the market.

In the second quarter of 2022, metallurgical coal prices decreased to an average of $445.95/t which initially appeared to be a correction following the increase in prices in response to the war in Ukraine and then sustained by weaker demand from steel producers. Coking coal prices were down in the third quarter of 2022 at $250.96/t. As announced in April 2022, on August 10, 2022, the EU enforced its ban on coal imports from Russia. In the fourth quarter of 2022, unfavorable weather conditions hindered the expansion of coal-mine output in Australia and the metallurgical coal prices averaged at $279.23/t as compared to $369.81/t in the fourth quarter of 2021. The anticipated end of China's ban on Australian coal imports increased the price to $315.05/t at the end of 2022. Despite a bearish global economic outlook, the coking coal spot market remained tight, aggravated by the inversion of the met-thermal pricing relation.

In the first quarter of 2023, metallurgical coal prices averaged $342.52/t as compared to $279.23/t in the fourth quarter of 2022. The prices increased due to a mixture of supply disruptions and strong coking coal demand. In Australia severe rainfall during the rainy season, with the La Nina pattern persisting, impacted the major mining region in Queensland. In January, cyclone Ellie disrupted portside operations at Abbot Point, Hay Point and DBCT and negatively affected production at coal mines due to floods. Additionally, a train derailment occurred in January on a major rail line in Queensland resulted in a number of rail service cancellations and consequent delayed shipments. Coking coal prices remained at elevated

levels during the first quarter of 2023, fueled by coal trade resumption between Australia and China and by strong demand from other major Asian economies for Australian coals.

In the second quarter of 2023, metallurgical coal prices came down to an average of $240.93/t, driven by an improvement on the supply side and a lackluster demand side. Production at major Australian mines was stable with no major accident or weather related event reported. On the demand side the major steel producing economies remained muted with India being the exception. Tepid Ex-China demand led to a closer correlation between China domestic pricing and Australian price index, based on fundamentals. Hence, 10 rounds of price cuts in China, due to weak domestic steel demand and poor steel profitability, also contributed in a decline of the Australian price index.

ArcelorMittal has continued to leverage its full iron ore and coking coal supply chain and diversified supply portfolio as well as the flexibility provided by contractual terms to mitigate regional supply disruptions and also mitigate part of the market price volatility.

Scrap

The Company considers the German suppliers’ index (“BDSV”) Delivered at Place (“DAP”) as market reference.

During 2023, the German suppliers index “BDSV” for reference grade E3 started in January and February at €377/t and €381/t, respectively, and increased to €409/t and €413/t, in March and April, respectively. However, in May it decreased to €384/t and ended June with a further decline to €360/t.

In the first half of 2023, the average index was €387/t as compared to €472/t in the first half of 2022, a €85/t or 18% decrease.

Turkey's total crude steel production in the first five months of 2023 was 13.0 million tonnes, down by 3.0 million tonnes or 19.1% compared to the same period of 2022.

Turkey’s scrap imports were down by 21% in the first four months of 2023 compared to the same period of 2022, at 6.65 million tonnes Nevertheless it remains the main scrap buying country in the international market.

Scrap Index HMS 1&2 CFR Turkey, North Europe origin, started in January 2023 at $407/t and then continuously increased until reaching $451/t in March 2023. From April 2023 onwards, the index continuously declined reaching $377/t in May 2023 and then it increased slightly to $381/t in June 2023.

In the first half of 2023 and in the first half of 2022, the average price of the European domestic scrap price of grade E3 was $9/t and $6/t higher than the export price of HMS 1&2 CFR Turkey, North Europe reference, respectively.

In the domestic U.S. market, HMS 1 delivered Midwest index was $98/t lower in the first half of 2023 as compared to the first half of 2022. The index decreased from an average of $455/t for the first half of 2022 to $357/t for the first half of 2023 ($314/t at June 30, 2023).

On the export market, HMS export FOB New York average price for the first half of 2023 was at $384/t, a decrease by $83/t compared to $467/t for the first half of 2022 ($355/t at June 30, 2023).

Ferro alloys and base metals

The underlying price driver for manganese alloys is the price of manganese ore, which was at a price level of $4.75 per dry metric ton unit (“/dmtu”) (for 44% lump ore) on Cost, Insurance and Freight (“CIF”) China in June 2023 while it was $4.79 /dmtu in January 2023.The price of manganese ore peaked at $5.78/dmtu in March 2023 because of tight supply after the rail line closure in Gabon.

The average price of high carbon ferro manganese in the first half of 2023 was $1,312/t, lower compared to $2,238/t in the first half of 2022. The average price of silicon manganese in the first half of 2023 was $1,359/t, lower compared to $2,349/t in the first half of 2022. The average price of medium carbon ferro manganese in the first half of 2023 was $2,063/t, lower compared to $3,956/t during the first half of 2022. The decrease in manganese alloys prices is due to various factors including but not limited to lower demand, easing manganese ore prices and energy costs.

The base metals used by ArcelorMittal are zinc, tin and aluminum for coating and deoxidization of liquid steel and nickel for producing stainless or special steels. ArcelorMittal partially hedges its exposure to its base metal inputs in accordance with its risk management policies.

The average price of zinc in the first half of 2023 was $2,835/t, representing a 26% decrease as compared to the average price in the first half of 2022 of $3,834/t, mainly driven by low demand, and high interest rates. In January 2023, the average price was $3,289/t while the average price in June 2023 was $2,368/t, with a low of $2,228/t on May 31, 2023 and a high of $3,509/t on January 27, 2023. Stocks registered at the London Metal Exchange (“LME”) warehouses stood at 80,825 tonnes as of June 30, 2023, representing a 252% increase compared to December 31, 2022 when registered stocks stood at 32,025 tonnes.

The average price of tin in the first half of 2023 was $26,301/t, representing a 35% decrease compared to the first half 2022 average of $40,211/t.

The average price of Primary Aluminum (LME Cash Settlement) in the first half of 2023 was $2,331/t, representing a 24% decrease as compared to the average price in the first half of 2022 of $3,075/t mainly driven by low demand and high interest rates. The average price in January 2023 was $2,489/t while the average price in June 2023 was $2,181/t, with a high of $2,366.5/t on March 2, 2023 and a low of $2,096.5/t on June 30, 2023. Stocks registered at the London Metal Exchange (“LME”) warehouses stood at 543,150 tonnes on June 30, 2023, representing a 17% increase compared to December 31, 2022 when registered stocks stood at 450,300 tonnes.

The average price of nickel in the first half of 2023 was $24,205/t, representing a 12.4% decrease compared to the first half of 2022 average of $27,636/t. The price at the end of June stood at $20,125/t.

Energy

Solid fuels, electricity and natural gas are some of the primary energy inputs for a steelmaker. ArcelorMittal is exposed to price volatility in each of these energy with respect to its purchases in the spot market and under its long-term supply contracts.

Oil

Oil prices in 2022 were exacerbated by the war in Ukraine. Brent peaked at almost $140 per barrel (“bbl”) in early March and traded range-bound between $100-$125/bbl until end of July, and only periodically breaking the $100/bbl mark. Fundamentally, the market was torn between the Organization of Petroleum Exporting Countries ("OPEC") and its allies struggling to meet their rising output quotas, embargoes on Russian oil and the fear of poor economic outlook. Brent crude oil averaged $99/bbl in 2022, an increase of $28/bbl compared to the previous year and more than double the average of 2020.

The prospect of stronger demand from China supported prices during this first quarter of 2023 leading to an average of $82/bbl, strengthened by easing of stringent COVID-19 measures and by the Chinese National People’s Congress declaring a target of 5% GDP growth for 2023.

Furthermore, the year started with a Russian crude oil partial embargo from the West and a cap price on Russian crude oil of $60/bbl. Oil prices increased further after EU and G7 countries agreed on a deal to cap Russian oil products at $100/bbl. In response, Russia announced that it would reduce the oil production. Towards the end of the first quarter of 2023, oil prices plummeted down to $73/bbl due to economic turmoil and the banking crisis, with banking failures at Silicon Valley Bank and Signature Bank in the U.S. and Europe-based Credit Suisse Group. During the second quarter of 2023, OPEC announced further cuts to support a downward market in order to lift prices above $80/bbl which were then quickly offset by several interest rate hikes by the U.S. Fed and a potential debt default in the U.S., taking a toll on oil prices and lowering them to the $75/bbl range. Oil prices averaged $78/bbl during the second quarter of 2023 with economic woes placing uncertainty over oil prices and looming output cut announcements in an attempt to raise them, given that Chinese demand remained muted.

CO2

The integrated steel process involves carbon reduction which leads to CO2 emissions, which distinguishes integrated steel producers from mini-mills and many other industries where CO2 generation is primarily linked to energy use. Launched in 2005, the European Union Emission Trading System ("EU-ETS"), which is based on a cap-and-trade principle which sets a cap on greenhouse gas emissions (“GHG”) from covered installations, is currently in its fourth phase, stretching from January 2021 to December 2030. On June 22, 2022, the European Parliament agreed on its position regarding the EU-ETS reform (main elements: 2030 emission reduction target, CBAM and end of free allocation).

ArcelorMittal targets a 35% and 25% reduction in CO2 emissions by 2030 in Europe and group-wide (scope 1 and 2

emissions), respectively, and has plans to become carbon neutral by 2050. ArcelorMittal Europe is investing in two routes to carbon neutrality, Smart Carbon and an innovative DRI-based route.

On January 1, 2021, Phase 4 of the EU-ETS started, which delayed the hand-out of free allocations. At the same time, the UK left the scheme and set up its own, with trading starting in May 2021. The EU Commission proposed its "Fit for 55" package and, hence various changes to the EU-ETS to reduce future supply and drive decarbonization. Those events led to uncertainty and hectic trading behavior. Exacerbated by the economic recovery, the EUA price went on a sharp rally.

In 2022, the price for carbon continued its upward trend, reaching €98.5/tCO2e on February 8, 2022. However, the Russian invasion of Ukraine led to a price drop of 42% in just 5 days and left the market trading at a 5-month low of €55/tCO2e. During May and June, CO2 traded directionless between €80-€90/tCO2e, only briefly breaching the range on either side. Fundamentally, the market was stuck between recession fears and bullish policy changes which may restrict supply in the future and further push toward energy transition. In August, a month known for its low auction volume and thin liquidity, the price for carbon was particularly volatile as CO2 broke the range in both directions and made a push towards €100/tCO2e. However, it started to decline in September 2022 (dropping more than €30/tCO2e) amid tensions on the gas market and a bleak economic outlook. This outlook started to improve in October 2022 and with it the price for CO2, finishing the year on a strong note of around €90/tCO2e. The average price for one tonne of CO2 emitted in 2022 increased by more than 50% compared to the previous year and tripled compared to 2020. The market ended 2022 above €80/tCO2e.

During the first quarter of 2023, the price for carbon increased from €80/tCO2e levels to an all-time high of €100/tCO2e on February 21, 2023. Compliance buying and expectations for cooler temperatures were two of the reasons for this increase. In the second quarter of 2023, weaker natural gas prices forced coal power plants out of the European power mix and declining demand pushed carbon prices down. From April to May 2023, carbon prices dropped from €95/tCO2e levels to below €80/tCO2e. During June 2023, carbon prices saw a rally on the back of a market squeeze and technical buying and prices recovered back to €95/tCO2e levels. The market ended the second quarter of 2023 below €90/tCO2e.

Because the integrated steel process leads to substantial CO2 emissions, costs related to EUA and the fluctuations in EUA prices can significantly affect the Company’s costs of production. The Company also uses derivative financial instruments to manage its exposure to fluctuations in prices of emission rights allowances.

Natural gas - Europe

The European gas benchmark or TTF (the price for natural gas, which is traded on a virtual trading platform located in the Netherlands) marked unprecedented levels in 2022 and yet corrected downwards amid a mild winter weather across Europe, demand reduction, historically high storage levels and no recovery in Chinese demand for liquefied natural gas (“LNG”). While the highest point was reached in August 2022 above €300 per Megawatt-hour (“MWh”), towards the end of December 2022, prices settled down to €68/MWh when a great part of the winter risk dissipated despite no Russian pipeline flows feeding into North-western Europe. Traders and politicians (who were still working on price capping measures) across Europe again were afraid of not being able to fill up storage and a potential supply crunch for winter. However, continuous strong LNG arrivals and pipeline flows contributed to market confidence and price declines. The steadfast commitment and mild weather during the early winter months allowed the filling of European storage ahead of their October (80% fullness) and November (90% fullness) targets. Storage was filled 83% by the end of 2022, considerably above the historical average primarily due to mild temperatures and oversupply of the European gas network.

The mild weather weighed down throughout the first quarter of 2023, and storage levels remained healthy. Freeport LNG, an important LNG export facility in the U.S. and key provider to Europe strategically located in the U.S. Gulf Coast, came back online after a fire in June 2022 further easing the supply-demand balance. Gas prices at this time (between February and March 2023) were in the €40-50/MWh range. The European Market Correction Mechanism came into force on February 15, 2023, establishing a gas price cap at €180/MWh on the front-month TTF should some conditions be met, although it is unlikely that these levels will be seen again. In early March 2023, French LNG regasification halted amid strikes in France on pension reform. Despite the strikes, prices slid down to around €40/MWh due to mild and windy weather as well as strong storage levels. Storage levels were at 56% at the end of March 2023 (which is 30% higher as compared to end of March 2022), helping to start the filling season in a favorable situation, although winter 2023/24 risks remain.

During the second quarter of 2023, persistent weak demand, healthy supply, and head start in storage levels weighed on European gas prices (despite heavy maintenance from Norwegian supply starting in May 2023) and Asian LNG prices followed the suit. Prices slumped to a 7-month low of €23/MWh in early June 2023. The low-price streak was interrupted by Norwegian gas supply outage extensions, which lifted prices back to €35-40/MWh. Nevertheless, the first half of 2023 ended with healthy storage levels at 77% fullness.

Natural gas - United States

In North America, natural gas prices (see table below) trade independently of oil prices and are set by spot and future contracts, traded on the NYMEX exchange or over the counter.

On January 27, 2022, Henry Hub (the main gas hub in Louisiana) reached an all-time high of $7.4 per million British thermal units ("MMBtu") due to the Texas Big Freeze. The invasion of Ukraine did not have an immediate impact on U.S. gas prices but over the months Henry Hub increased from $3.9/MMBtu mid-February 2022 to $9.6/MMBtu by mid-June 2022. Continuous supply side issues, low domestic storage and strong LNG export demand were the main drivers for this sharp increase. A fire at the Freeport LNG facility mid-June and a resulting drop in LNG export demand led to a price drop to below $5.5/MMBtu by the end of June 2022. However, the U.S. reacted to supply needs from Europe amid Russian gas halts and reached a new all-time high of $9.9/MMBtu on August 22, 2022. In the third quarter of 2022, prices dropped due to high production which allowed high storage levels before the winter heating started. The Henry Hub price averaged $6.09/MMBtu during the last quarter of 2022. The need to export more LNG to Europe, high coal prices and harsh winter conditions increased demand for power generation, and with an average of $6.4/MMBtu for 2022, the highest price average since the financial crisis in 2008.

A significant reversal was experienced during the first quarter of 2023, whereby mild weather corrected demand for natural gas during the remainder of the winter, as a result of which prices fell to a low of $2.07/MMBtu. Upon the return of Freeport LNG liquefaction plant to operation after the fire in June 2022, prices spiked up to $3.00/MMBtu at the end of February 2023, although they then corrected by downward trend throughout March 2023. The average price for the first quarter of 2023 was $2.74/MMBtu. During the second quarter of 2023, gas prices continued to stabilize and ended June 2023 at an average of $2.33/MMBtu.

Natural gas - Asia

Gas consumption in Asia took a blow in 2022 amid strict COVID-19 control measures being implemented in China until late in the year as well as the sharp increase in global gas prices amid Europe’s sudden hunger for LNG ahead of the wintertime. Still, given the intrinsic global nature of LNG trade, the Platts Japan Korea Marker ("JKM") - the LNG benchmark price assessment for spot physical cargoes delivered ex-ship into Japan, South Korea, China and Taiwan – suffered from a rally in LNG prices. The quarterly average stood at all-time highs of $47/MMBtu and $31/MMBtu during the third and fourth quarter of 2022, respectively, having peaked at $70/MMBtu in August 2022. The price increase was fueled by the global need to refill depleted gas storage and a fierce battle between Europe and Asia to attract cargoes. Overall, it was a year of great volatility in prices and the annual JKM average was $34/MMBtu in 2022, 90% higher than in 2021.

During the first quarter of 2023, the JKM front-month contract corrected down from the high prices seen in the first quarter of 2022, despite the easing of COVID-19 control measures by the Chinese government. In the first quarter of 2023, JKM traded at an average of $18/MMBtu, 41% lower compared to the same quarter of 2022.

Prices continued the downtrend led by healthy supply-demand balance in global markets, particularly in Europe as well as slow demand recovery from China. The average spot price for the second quarter of 2023 stood at $11/MMBtu, representing a 59% price discount to the same quarter of 2022, a level close to the estimated price for oil-indexed Asian LNG contracts. This prompted South Asian and Southeast Asian countries to return to the spot market. However, demand in the region remained relatively muted particularly due to slow Chinese industrial revival and high LNG inventories across North Asia.

The following table shows quarterly average spot prices of natural gas:

1.As of January 1, 2023, the Company has changed its source for natural gas prices for the European gas benchmark from Thomson Reuters to EEX Pegas.

Electricity - Europe

Due to the regional nature of electricity markets, prices follow mainly local drivers (i.e. energy mix of the respective country, power generation from renewables, country specific energy policies, etc.).

In 2022, the electricity price experienced new highs amid high fuel prices and renewable power not able to provide the needed relief. The third quarter of 2022 saw the highest prices ever recorded; four to five times higher than 2021. In the last quarter of 2022, electricity prices declined with decreasing natural gas

prices and lower power demand amid mild weather conditions in Northwest Europe.

In the first half of 2023, electricity prices significantly decreased compared to the same period of 2022. Two major points can be used to explain the price decline, namely overall decreasing fuel prices (i.e., thermal coal and natural gas) and reduced demand due to mild temperatures during winter 2022/2023.

From a fundamental perspective, while power output from renewables was not particularly strong for the first half of 2023, hydro reservoirs have been following the seasonal norms. Compared to the second quarter of 2022, an increase in nuclear power availability in France during the second quarter of 2023 contributed to downward pressure on the system.

The following table shows the quarterly average spot prices of electricity in Germany, France and Belgium for 2022 and the first half of 2023:

Ocean freight

In the first half of 2022, the shipping market performed decidedly below expectations. While the first quarter of 2022 was seasonally a weaker quarter due to the Chinese new year celebrations and golden week, the weaker shipping market persisted with rates dropping across the board as a consequence of a reduction in COVID-19 related inefficiencies and easing of port congestion at key terminals. The war in Ukraine also affected grain shipments and commodity flows from the Black sea leaving more ships available for other trades, driving rates down accordingly.

While 2023 started off with a deeper than usual seasonal slump in dry cargo freight market, there was positive year-on-year data coming out of China in the first quarter promising economic growth. Though encouraging, being a positive driver for near term sentiment, the effect of positive trade data has not proven particularly long lasting as more recent data points suggest a loss of momentum in, among other sectors, China’s property market. While all sectors saw a rapid uptick in rates during end-February 2023 to mid-March 2023, the Supramax and Panamax segments have seen relatively steady declines in rates since then.

Capesize rates have been far more volatile, but have fluctuated around the $15,000/day mark on a Time Charter Equivalent basis.

From a volume perspective, positive developments in the grains trade, notably as it relates to Brazilian soybean exports, as well as improved prospects for the minor bulks, more than offset reductions seen in the coal and iron ore trades. The shipping consultancy MSI's estimate that dry bulk trade volumes will expand by 2.7% year on year, which is slightly higher from 2.1% forecast from earlier this year.

The Baltic Dry Index (“BDI”) average for the first half of 2023 was 1,162 points compared to 2,285 points in the first half of 2022. By the end of the second quarter, Capesize rates have regained initial losses, increasing at a modest 4.2% from the start of 2023, though averaging at $12,249/day in the first half of 2023, a year-on-year 32% decrease as compared to $18,089/day in the first half of 2022. Average rates in 2022 were $16,177/day. The Panamax index decreased by 12.8% since the beginning of 2023, averaging $11,787 in the first half of 2023, a year-on-year 53% decrease as compared to $24,876/day in the first half of 2022. Average rates in 2022 were $20,736/day.

Projected fleet growth across all segments for 2023 is a relatively modest 2.9% year on year. Scrapping volumes are expected to hit 13.2 million dead weight this year, a figure which is expected to increase in the coming years in response to a tighter regulatory environment.

Impact of exchange rate movements

Because a substantial portion of ArcelorMittal’s assets, liabilities, sales and earnings are denominated in currencies other than the U.S. dollar (its reporting currency), ArcelorMittal has exposure to fluctuations in the values of these currencies relative to the U.S. dollar. These currency fluctuations, especially the fluctuations of the U.S. dollar relative to the euro, as well as fluctuations in the currencies of the other countries in which ArcelorMittal has significant operations and sales, can have a material impact on its results of operations. In order to minimize its currency exposure, as part of its risk management, ArcelorMittal enters into hedging transactions to lock-in a set exchange rate.

In the first half of 2023, the euro appreciated from 1.0666 against U.S. dollar at December 31, 2022 to 1.0866 at June 30, 2023, amid rate differentials due to the U.S. Central Bank monetary policy. In addition, markets weighted the risks of global recession in a context of rising inflation.

The Polish zloty appreciated throughout the first half of 2023 from 4.39 at December 31, 2022 to 4.09 at June 30, 2023. Polish zloty's strength is based on lower inflation and economic recovery with the Central Bank's main rates being unchanged for 10 months.

The Ukrainian hryvnia exchange rate against the U.S. dollar has been frozen since July 2022 at 36.57 in order to protect the value of the Ukrainian hryvnia in a context of geopolitical tensions.

The Kazakh Tenge appreciated against the U.S. dollar in 2023 starting from 462.65 at December 31, 2022 to 454.13 at June 30, 2023. The Kazakh Tenge remains highly correlated with geopolitical tensions between Russia and Ukraine, triggering high inflation and logistical disruption.

The Indian rupee appreciated against the U.S. dollar in 2023 from 82.67 at the beginning of the year to 82.10 on June 30, 2023 due to interest rate differentials with the U.S. dollar. The Central Bank of India has marginally lowered its inflation forecast for the year. The reduction is likely due to the expectation that oil prices will be softer than previously thought.

The South African rand depreciated against the U.S. dollar from 16.96 at December 31, 2022 to 18.73 at June 30, 2023 amid higher inflation and energy risks ahead of 2023/2024 winter.

The Canadian dollar appreciated marginally against the U.S. dollar during the first half of 2023 from 1.35 at December 31, 2022 to 1.33 at June 30, 2023. Rally in commodity prices in January 2023 supported the appreciation of the Canadian dollar, as well as the risk of global recession and a decreasing inflation. Furthermore, the interest rate differential between the U.S. dollar and the Canadian dollar led the U.S. dollar to depreciate.

The Mexican peso appreciated in 2023 against the U.S. dollar from 19.55 at December 31, 2022 to 17.08 at June 30, 2023 due to the hikes in central banks rates and strong U.S production demand providing a favorable external balance to support the currency.

The Brazilian real appreciated against the U.S. dollar in 2023 from 5.22 at December 31, 2022 to 4.82 at June 30, 2023, due to the Central Bank rate hike and the presidential elections.

The Argentine peso continued to depreciate significantly against the U.S. dollar in 2023 from 177.16 at December 31, 2022 to 256.67 on June 30, 2023, amid poor economic data, debt issues and extreme inflation reaching 110%.

Trade and import competition

Europe

There has been a trend of imports growing more strongly than domestic demand in the European Union (“EU”) since 2012. ASC increased approximately 13% between 2012 and 2019, while finished steel imports increased by approximately 70%, taking market share from domestic producers. Over this period, total finished imports have risen from almost 14 million tonnes in 2012 to over 23 million tonnes in 2019, causing import penetration to rise to 17% in 2019 from 11% in 2012.

After import penetration fell slightly to 16% in 2020 as the COVID-19 pandemic led to sharp decline in imports, in 2021, import penetration increased back to 19% despite a strong rebound in ASC, as supply side constraints led to elevated steel prices, which attracted a sharp increase in steel imports. In 2022, the Russian invasion of Ukraine in February triggered an energy crisis in Europe, causing both ASC and imports to decline sharply during the second half of 2022. As a result, import penetration only rose marginally to 20% in 2022. In the first half of 2023, ASC declined by approximately 10% year-on-year, despite relatively resilient real steel demand, as steel production remained at weak levels, while inventories continued to fall, albeit at a much slower rate than the sharp destock seen during the second half of 2022. However, imports fell even further declining by approximately 14% year-on-year, pushing import penetration down slightly to 19% during the first half of 2023.

Traditionally, imports into EU27 have come from the Commonwealth of Independent States (“CIS”), China, Turkey, Developed Asia and the UK, with these regions accounting for approximately 75% of imports between 2015 and 2020. While CIS had a large share of EU imports, accounting for approximately 25% of imports in 2020 and 2021, the war in Ukraine and the EU’s subsequent sanctions on the Russian economy meant imports from CIS fell sharply, particularly during the second half of 2022, and the share of imports from CIS decreased to 11% in 2022. During the first half of 2023, imports from CIS remained low as sanctions continued, leading to a CIS imports share of approximately 5%. Imports from Turkey also fell significantly during the first half of 2023 due to the impact of the earthquake leading to a significant disruption of domestic Turkish production. As a result, import share from Turkey decreased to 10% during the first half of 2023, from 17% in 2022. Lower imports from CIS and Turkey were partially offset by higher imports from Asia Pacific. Imports from China into the EU increased approximately 30% year-on-year due to stagnant domestic demand and ample supply in China. Imports from Developed Asia, ASEAN and India also rose. As a result, imports share from Asia Pacific increased during the first half of 2023 relative to 2022, with China at 12%, compared to 9% in

2022, Developed Asia at 27% compared to 21%, India at 11% compared to 8% and ASEAN 11% compared to 8% in 2022.

Source: Eurostat imports to May 2023, internal company estimate for June 2023. ASC data from Eurofer to April 2023, internal company estimates for May and June 2023. All historical data now refers to EU27 after the UK left the European Union.

United States

Finished steel imports declined to approximately 18 million tonnes in 2019 (or an import penetration of 19%), after section 232 was implemented in 2018, adding a 25% tariff on most imports outside USMCA (United States-Mexico-Canada Agreement). In 2020, the decline in real steel demand due to the COVID -19 pandemic pushed finished steel imports to fall by 23% year-on-year to approximately 14.1 million tonnes, with import penetration declining to 18%. In 2021, a combination of a strong post-pandemic steel demand recovery and elevated steel prices relative to global levels, meant imports grew approximately 50% year-on-year, far exceeding ASC growth (21% year-on-year), leading import penetration to increase to approximately 21% in 2021 from 18% in 2020.

Steel imports continued to increase strongly during 2022, with the increase in imports outpacing growth in steel demand, leading to imports penetration increased to 23%. During the first half of 2023, steel imports declined (16% year-on-year), much more than the decrease in steel demand (ASC 7% year-on-year). As a result, import penetration fell to approximately 22% during the first half of 2023.

Traditionally, only around one-third of U.S. finished steel imports came from within USMCA, but since 2019 imports from Canada and Mexico have increased their share to approximately 40%, mainly at the expense of Europe where the share of imports was lower. However, in 2022, after section 232 tariffs were removed, the EU import share returned to pre-2019 levels at approximately 14% in 2022, compared to 11% in 2021, while import share from Developed Asia remained at approximately 20%. During the first half of 2023, import share from USMCA – Canada and Mexico – remained stable at 41%. Import shares from EU27 increased slightly to 15% while import share from Developed Asia decreased to approximately 18%.

Source: American Iron and Steel Association total/regional imports data and ASC data to May 2023, internal Company estimate for June 2023.

China

Chinese finished steel exports increased to 66.9 million tonnes in 2021, up 24% year-on-year from 53.7 million tonnes in 2020 due to strong demand post-pandemic in world ex-China. In 2022, finished steel exports rose by only 1% year-on-year to 67.4 million tonnes, with exports increasing from 4.4 million tonnes per month in the first quarter to 6.8 million tonnes in the second quarter of 2022 due to major lockdowns in China (e.g. Shanghai in April/May) and weakening domestic steel demand.

Post-reopening in December 2022, stronger domestic steel demand in early 2023 kept finished steel exports from China at an average of approximately 6 million tonnes in January and February 2023. However, with domestic demand stagnating due to persistent weakness in the real estate sector, in addition to ample supply, Chinese steel exports increased through the first half the 2023. Finished steel exports increased to around 8 million tonnes per month in March through June 2023, particularly as Chinese domestic steel prices, were consistently below prices in major export markets. Overall, in the first half of 2023, Chinese finished steel exports rose by more than 30% year-on-year to an annual rate of almost 85 million tonnes. However, most Chinese exports are delivered to regions which are not core to the Company’s business due to the protection of trade measures, with the share of Chinese exports to EU27 or North America falling to approximately 8% in first half of 2023, from 10% in 2022. Share of exports to ASEAN also fell to 28% (2022: 30%), offset by a higher share in Turkey (6%, up from 3% in 2022). Export shares to other regions remain broadly stable (e.g. Developed Asia: 15% and Latin America: 10%). If, as expected, China enters a period of declining steel demand over the next decade, China will need to reduce its domestic steel making capacity or exports to the rest of the world will likely rise sharply.

Source: China NBS trade data until June 2023. Trade flows by destination to May, internal company estimate for June 2023.

Consolidation in the steel and mining industries

Prior to 2017, consolidation transactions had decreased significantly in terms of number and value in the context of economic uncertainty in developed economies combined with a slowdown in emerging markets.

However, in an effort to reduce the worldwide structural overcapacity, some key consolidation steps were undertaken in 2023, 2022 and 2021, specifically in China, in the U.S. and in Europe.

Steel industry consolidation in China aims at enhancing international competitiveness, reducing overcapacity, rationalizing steel production based on obsolete technology, improving energy efficiency, achieving environmental targets and strengthening the bargaining position of Chinese steel companies in price negotiations for iron ore during a time of heightened emphasis on decarbonization. The Chinese government had set a target that 60-70% of steel should be produced by the top ten steel groups by 2025. However, in 2021, the Chinese government focused on setting a target to increase the proportion of the top five steelmakers' crude steel output to China's total output to 40% by 2025. Baowu Steel Group ("Baowu"), the world's largest steelmaker, remains at the forefront of consolidation efforts within China's steel industry and increased its steel production capacity to 115 million tonnes at

the end of 2020 after various acquisitions. In February 2021, Baowu acquired a 90% controlling stake in Kunming Iron and Steel, which increased its steel production capacity to 125 million tonnes. In July 2021, Baowu announced that it would take over China's seventh-largest steel producer Shandong Iron and Steel, and in October 2022, Jiangxi province signed an agreement to transfer a 51% shareholding in Xinyu Iron & Steel Group (Xingang Group) to Baowu, increasing Baowu's steel production capacity by 10 million tonnes. In 2022, Baowu produced 132 million tonnes of crude steel, more than doubling its output over the past five years. Both acquisitions and the announced integration of Baotou Iron and Steel Group (Baogang Group) in 2022, once complete, will increase Baowu's annual crude steel production to about 182 million tonnes.

In August 2021, Anshan Iron & Steel Group (or Angang) and Ben Gang Group, two of the biggest state-owned steelmakers in northeast China, completed the process of merging their businesses to create the world's third-largest steel producer with an annual capacity of 63 million tonnes. In June 2022, Angang announced its intent to acquire Lingyuan Iron & Steel Group, which would further consolidate the steel industry in northeastern China's Liaoning province. The acquisition would take Angang's annual crude steel output to over 69 million tonnes, accounting for over 6% of China's total steel output. The acquisition was approved by relevant government authorities and is in final stage of completion.

In Europe, on October 29, 2019, Liberty House Group announced a merger with GFG Alliance's steel businesses to create Liberty Steel Group with a capacity of 18 million tonnes. According to the announcement, Liberty Steel Group will be the eighth largest steel producer outside China, with operations stretching from Australia to continental Europe, the United Kingdom and the United States. In November 2018, ArcelorMittal completed the acquisition (via a long-term lease) of ArcelorMittal Italia, Europe’s largest single steel site and only integrated steelmaker in Italy with its main production facility based in Taranto. The transaction was approved by the European Commission on May 7, 2018 subject to the disposal of certain assets in Italy, Romania, North Macedonia, the Czech Republic, Luxembourg and Belgium, which were completed in June 2019. In December 2020, ArcelorMittal signed an agreement with Invitalia to form a public-private partnership which became effective mid April 2021 and which was amended on May 31, 2022.

On March 9, 2023, ArcelorMittal announced that following receipt of customary regulatory approvals it completed the acquisition of Companhia Siderúrgica do Pecém (‘CSP’) (renamed ArcelorMittal Pecém) in Brazil for an enterprise value of approximately $2.2 billion. CSP is a world-class operation, producing high-quality slab at a globally competitive cost. Its facility, located in the state of Ceará in northeast Brazil was commissioned in 2016.

It operates a three-million tonne capacity blast furnace and and after the acquisition, took ArcelorMittal's annual crude steel production capacity to approximately 85.7 million tonnes (see “Key transactions and events”).

Further future consolidation should allow the steel industry to perform more consistently through industry cycles by achieving greater efficiencies and economies of scale.

Operating results for the six months ended June 30, 2023 as compared to six months ended June 30, 2022

The following discussion and analysis should be read in conjunction with ArcelorMittal's interim condensed consolidated financial statements included in this report. ArcelorMittal reports its operations in five segments: NAFTA, Brazil, Europe, ACIS and Mining.

Key indicators

The key performance indicators that ArcelorMittal’s management uses to analyze performance and operations are the lost time injury frequency (“LTIF”) rate, sales, average steel selling prices, crude steel production, steel shipments, iron ore production and operating income. Management’s analysis of liquidity and capital resources is driven by operating cash flows.

Health and safety

Protecting the safety, health and wellbeing of employees remains the Company’s overarching priority as it aspires to become a fatality free and severe injury free company.

The Company is moving to a ‘predict-and-prevent’ culture which involves focusing its attention on proactive rather than reactive key performance indicators, with a particular focus on proactively detecting and identifying the Potential for Serious Injuries or Fatalities (“PSIF”). PSIFs are precursors of severe accidents: unsafe situations or events, that we detect proactively, before they could lead to a fatality or injury. This approach enables the Company to provide a deeper understanding of how near- miss incidents arise and can be avoided.

Health and safety performance, based on the Company’s personnel figures and contractors LTIF rate, remained broadly stable at 0.70 for the six months ended June 30, 2023 as compared to 0.68 for the six months ended June 30, 2022.

Sales, operating income, crude steel production, steel shipments, average steel selling prices and mining production

The following tables and discussion summarize ArcelorMittal’s performance by reportable segment for the six months ended June 30, 2023 as compared with the six months ended June 30, 2022:

1.Amounts are prior to inter-segment eliminations (except for total) and sales include non-steel sales.

2.Others and eliminations to segment operating income reflects certain adjustments made to operating income of the segments to reflect corporate costs, income from non-steel operations (e.g. energy, logistics and shipping services) and the elimination of stock margins between segments. See table below.

1.Includes primarily staff and other holding costs and results from shared service activities.

Shipments and average, steel selling prices and iron ore production

ArcelorMittal’s steel shipments decreased 3.6% to 28.7 million tonnes for the six months ended June 30, 2023, as compared to 29.7 million tonnes for the six months ended June 30, 2022. Excluding the shipments of ArcelorMittal Pecém (consolidated from March 9, 2023) and Ukraine, steel shipments in the first half of 2023 declined by 5.5% as compared to the first half of 2022 (impacted by outages in Europe and lower demand in Brazil, including exports).

Average steel selling prices decreased by 15% for the six months ended June 30, 2023 as compared to the six months

ended June 30, 2022 where prices benefited from restocking demand following the outbreak of war in Ukraine.

ArcelorMittal's total iron ore production decreased by 11.3% to 21.3 million tonnes (including 13.1 million tonnes in the Mining segment) for the six months ended June 30, 2023 as compared to 24.0 million tonnes (including 14.2 million tonnes in the Mining segment) for the six months ended June 30, 2022 mainly due to lower production in ArcelorMittal Mines Canada which was impacted by unplanned maintenance and the impact of the war on iron ore production in Ukraine.

Sales

ArcelorMittal’s sales decreased by 15.6% to $37.1 billion for the six months ended June 30, 2023, from $44.0 billion for the six months ended June 30, 2022, primarily due to lower steel shipments and 15% lower average steel selling prices.

Cost of sales

Cost of sales consists primarily of purchases of raw materials necessary for steel-making (iron ore, coke and coking coal, scrap and alloys), energy, repair and maintenance costs as well as direct labor costs, depreciation and impairment. Cost of sales for the six months ended June 30, 2023 was $32.8 billion, decreasing as compared to $33.9 billion for the six months ended June 30, 2022, mainly as a result of lower steel shipments, iron ore references prices and energy costs.

ArcelorMittal’s operating income for the six months ended June 30, 2023 was lower at $3,117 million, compared to $8,927 million for the six months ended June 30, 2022 primarily as a result of negative price-cost effect (predominantly on account of lower average steel selling prices) and lower steel shipments.

*NAFTA steel shipments include slabs sourced by NAFTA from Group subsidiaries (primarily Brazil) and sold to the Calvert joint venture which are then eliminated on consolidation. These shipments can vary between periods due to slab sourcing mix and timing of vessels in a period. First half of 2023 834,000 tonnes and first half of 2022 660,000 tonnes.

Crude steel production in the NAFTA segment increased 7.3% to 4.4 million tonnes for the six months ended June 30, 2023 as compared to 4.1 million tonnes for the six months ended June 30, 2022, which was impacted by labor actions in Mexico and in Long Products Canada and maintenance in Canada.

Steel shipments in the NAFTA segment increased 10.9% to 5.4 million tonnes for the six months ended June 30, 2023, from 4.9 million tonnes for the six months ended June 30, 2022 primarily due to higher slab shipments sourced from the Brazil segment for Calvert and higher steel shipments in Mexico.

Average steel selling prices in the NAFTA segment decreased 20.2% to $1,052/tonne for the six months ended June 30, 2023 from $$1,319/tonne for the six months ended June 30, 2022, in line with the trend in market prices.

Sales

Sales in the NAFTA segment decreased 7.6% to $6.8 billion for the six months ended June 30, 2023 compared to $7.4 billion for the six months ended June 30, 2022, mainly due to 20.2% lower average steel selling prices, offset in part by 10.9% higher steel shipment volumes and the impact of consolidation of ArcelorMittal Texas HBI.

Operating income for the NAFTA segment for the six months ended June 30, 2022 was $1,117 million, as compared to $1,871 million for the six months ended June 30, 2022, mainly driven by a significant negative price-cost effect offset in part by higher steel shipments and the contribution from ArcelorMittal Texas HBI.

Crude steel production in the Brazil segment increased 10.8% to 6.8 million tonnes for the six months ended June 30, 2023 as compared to 6.1 million tonnes for the six months ended June 30, 2022 primarily due to the consolidation of ArcelorMittal Pecém from March 9, 2023. On a scope adjusted basis excluding the impact of ArcelorMittal Pecém, crude steel production for the six months ended June 30, 2023 was 5.3% lower as compared to the six months ended June 30, 2022, due to lower demand including exports (in particular in the first quarter of 2023).

Total steel shipments in the Brazil segment increased 8.0% to 6.5 million tonnes for the six months ended June 30, 2023 as compared to 6.0 million tonnes for the six months ended June 30, 2022, primarily due to the impact of ArcelorMittal Pecém. On a scope adjusted basis excluding the impact of ArcelorMittal Pecém, steel shipments for the six months ended June 30, 2023 was 7.9% lower as compared to the six months ended June 30, 2022 due to lower demand including exports.

Average steel selling prices in the Brazil segment decreased 12.8% to $991/tonne for the six months ended June 30, 2023 from $1,136/tonne for the six months ended June 30, 2022, in line with the trend in market prices.

Sales

Sales in the Brazil segment decreased 6.2% to $6.9 billion for the six months ended June 30, 2023 as compared to $7.4 billion     for the six months ended June 30, 2022, primarily due to 12.8% lower average steel selling prices offset in part by 8.0% higher steel shipments (including ArcelorMittal Pecém).

Operating income for the Brazil segment for the six months ended June 30, 2023 was $876 million as compared to $1,875 million for the six months ended June 30, 2022. Operating income decreased 53.3% primarily driven by negative price-cost effect, partly offset by higher steel shipments (including the contribution from ArcelorMittal Pecém).

Despite the Company's gradual restart of previously curtailed crude steel capacity during the first quarter of 2023 to meet demand as apparent demand conditions improved following the aggressive destock in the second half of 2022, crude steel production for the Europe segment decreased 13.1% to 14.7 million tonnes for the six months ended June 30, 2023, from 16.9 million tonnes for the six months ended June 30, 2022, primarily due to lower demand and outages of blast furnaces in Gijon, Spain (BF A) and Dunkirk, France (BF 4) in late March 2023. These blast furnaces were restarted in mid-July 2023.

Steel shipments in the Europe segment decreased 7.8% to 15.0 million tonnes for the six months ended June 30, 2023, from 16.3 million tonnes for the six months ended June 30, 2022, primarily due to lower production as discussed above and weaker demand.

Average steel selling prices in the Europe segment decreased 14.2% to $1,076/tonne for the six months ended June 30, 2023 from $1,254/tonne for the six months ended June 30, 2022 in line with the trend in market prices.

Sales

Sales in the Europe segment decreased 19.1% to $21.4 billion for the six months ended June 30, 2023 as compared to $26.5 billion for the six months ended June 30, 2022, primarily due to a 14.2% decrease in average steel selling prices and 7.8% lower steel shipments.

Operating income for the Europe segment for the six months ended June 30, 2023 was $933 million, as compared to $4,144 million for the six months ended June 30, 2022, primarily due to a negative price-cost effect and lower shipments offset in part by lower energy costs.

Crude steel production for the ACIS segment decreased 12.4% to 3.3 million tonnes for the six months ended June 30, 2023, as compared to 3.7 million tonnes for the six months ended June 30, 2022, primarily due to lower steel production in Ukraine driven by the ongoing war.

Total steel shipments in the ACIS segment decreased 8.9% to 3.0 million tonnes for the six months ended June 30, 2023, from 3.3 million tonnes for the six months ended June 30, 2022, primarily due to the impact of the ongoing war in Ukraine.

Average steel selling prices in the ACIS segment decreased by 16.7% to $734/tonne for the six months ended June 30, 2023 from $881/tonne for the six months ended June 30, 2022 in line with the trend in market prices.

Sales

Sales in the ACIS segment decreased 20.6% to $2.8 billion for the six months ended June 30, 2023 as compared to $3.6 billion for the six months ended June 30, 2022, primarily due to 8.9% lower steel shipments and 16.7% lower average steel selling prices.

Operating (loss) income

Operating loss for the ACIS segment for the six months ended June 30, 2023 was $240 million, as compared to operating income of $323 million for the six months ended June 30, 2022, primarily due to lower steel shipments, lower average steel selling prices and the impact of the war in Ukraine.

Production

The Mining segment had iron ore production of 13.1 million tonnes for the six months ended June 30, 2023, a 7.9% decrease as compared to 14.2 million tonnes for the six months ended June 30, 2022, reflecting primarily lower iron ore production in ArcelorMittal Mining Canada G.P. and ArcelorMittal Infrastructure G.P. ("AMMC").

Sales

Sales in the Mining segment decreased 18.3% to $1.6 billion for the six months ended June 30, 2023 from $1.9 billion for the six months ended June 30, 2022, primarily due to 15.6% lower iron ore reference prices and 1.9% lower iron ore shipments. Sales to external customers were $530 million for the six months ended June 30, 2023, representing a 27.1% decrease compared to $727 million for the six months ended June 30, 2022, due to lower iron ore reference prices and lower shipments.

Mining segment iron ore shipments decreased 1.9% to 14.0 million tonnes for the six months ended June 30, 2023 from 14.2 million tonnes for the six months ended June 30, 2022, primarily due to lower production at AMMC.

With respect to average iron ore reference prices, the average seaborne iron ore spot price of $117.87/tonne (Delivered to China, normalized to Qingdao and 62% Fe US$ per tonne, Metal Bulletin) was 15.6% lower for the six months ended June 30, 2023 as compared to the six months ended June 30, 2022. It should be noted, however, that there may be no direct correlation between spot prices and actual selling prices at a

given time. See also quarterly reference prices in "Raw Materials - Iron ore" above.

Operating income for the Mining segment for the six months ended June 30, 2023 was $599 million, as compared to $974 million for the six months ended June 30, 2022, primarily due to lower seaborne iron ore reference prices, lower shipments as discussed above and lower quality premia partially offset by lower freight costs.

Investments in associates, joint ventures and other investments

Income from investments in associates, joint ventures and other investments was lower at $711 million for the six months ended June 30, 2023, as compared to $1,137 million for the six months ended June 30, 2022, primarily due to lower contributions from AMNS Calvert and European investees, which experienced similar dynamics to those affecting the Company, partially offset by the higher contribution from AMNS India. Crude steel production and steel shipments of AMNS India increased by 4.7% and 8.2%, respectively, from 3.4 million tonnes in the first half of 2022 to 3.6 million tonnes in the first half of 2023 and from 3.2 million tonnes in the first half of 2022 to 3.5 million tonnes in the first half of 2023, respectively. With respect to AMNS Calvert, production1 increased by 7.7% from 2.3 million tonnes in the first half of 2022 to 2.4 million tonnes in the first half of 2023 while steel shipments2 remained stable at 2.3 million tonnes in the first half of 2022 and 2023. AMNS Calvert is constructing a new 1.5 million tonnes electric arc furnace ("EAF") and caster whose estimated completion has now been extended to the second half of 2024 (previously second half of 2023) largely due to enlarged scope and inflation. The joint venture is to invest approximately $1.0 billion. An option to add a further 1.5 million tonnes EAF at lower capital expenditure intensity is being studied.

Income in the first half of 2022 included also the annual dividend received from Erdemir of $117 million with no such dividend received in the first half of 2023.

1.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.

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

Financing costs – net

Net interest expense (interest expense less interest income) was higher at $111 million for the six months ended June 30, 2023 as compared to $104 million for the six months ended June 30, 2022 reflecting the issuance during the second half of 2022 of new notes bearing higher interest rates offset in part by higher interest income.

Foreign exchange and other net financing losses (which includes foreign currency swaps, bank fees, interest on pension obligations, impairment of financial instruments, revaluation of derivative instruments, and other charges that cannot be directly linked to operating results) were lower at $250 million for the six months ended June 30, 2023, as compared to $323 million for the six months ended June 30, 2022.

Foreign exchange loss for the first half of 2023 was $29 million as compared to a foreign exchange loss of $198 million in the first half of 2022.

Income tax

ArcelorMittal’s income tax expense is affected by the income tax laws and regulations in effect in the various countries in which it operates and the pre-tax results of its subsidiaries in each of these countries, which can vary from year to year. ArcelorMittal operates in jurisdictions, mainly in Eastern Europe and Asia, which have a structurally lower corporate income tax rate than the statutory tax rate as in effect in Luxembourg (24.94%), as well as in jurisdictions, mainly in Western Europe and the Americas which have a structurally higher corporate income tax rate.

ArcelorMittal recorded an income tax expense of $420 million for the six months ended June 30, 2023, as compared to $1,381 million for the six months ended June 30, 2022, which included $178 million and $214 million of deferred tax income, respectively.

Non-controlling interests

Net income attributable to non-controlling interests for the six months ended June 30, 2023 was $91 million as compared to $208 million for the six months ended June 30, 2022. Net income attributable to non-controlling interests for the six months ended June 30, 2023 primarily relates to the non-controlling shareholders’ share of net income recorded in AMMC, Belgo Bekaert Arames in Brazil and ArcelorMittal South Africa.

Net income or loss attributable to equity holders of the parent

ArcelorMittal’s net income attributable to equity holders of the parent for the six months ended June 30, 2023 was $2,956 million, or $3.47 basic earnings per common share, as compared to $8,048 million for the six months ended June 30, 2022, or $8.53 basic earnings per common share, for the reasons discussed above.

Liquidity and capital resources

ArcelorMittal’s principal sources of liquidity are cash generated from its operations and its credit facilities at the corporate level. Because ArcelorMittal is a holding company, it is dependent upon the earnings and cash flows of, and dividends and distributions from, its operating subsidiaries to pay expenses and meet its debt service obligations. Cash and cash equivalents are primarily centralized at the parent level and are managed by ArcelorMittal Treasury SNC, although from time to

time cash or cash equivalent balances may be held at the Company’s international subsidiaries or its holding companies. Some of these operating subsidiaries have debt outstanding or are subject to acquisition agreements that impose restrictions on such operating subsidiaries’ ability to pay dividends, but such restrictions are not significant in the context of ArcelorMittal’s overall liquidity. Repatriation of funds from operating subsidiaries may also be affected by tax and foreign exchange policies in place from time to time in the various countries where the Company operates, though none of these policies are currently significant in the context of ArcelorMittal’s overall liquidity.

In management’s opinion, ArcelorMittal’s credit facilities are adequate for its present requirements.

As of June 30, 2023, ArcelorMittal’s cash and cash equivalents (including restricted cash of $118 million) totaled $5.9 billion as compared to $9.4 billion (restricted cash of $114 million) as of December 31, 2022. In addition, ArcelorMittal had available borrowing capacity of $5.5 billion under its $5.5 billion revolving credit facilities as of June 30, 2023 and as of December 31, 2022.

As of June 30, 2023, ArcelorMittal’s total debt, which includes long-term debt, net of current portion and short-term debt and current portion of long-term debt was $10.5 billion, as compared to $11.7 billion as of December 31, 2022.

Net debt (defined as long-term debt, net of current portion ($8.7 billion) plus short-term debt and current portion of long-term debt ($1.8 billion), less cash and cash equivalents and restricted cash ($5.9 billion)) was $4.5 billion as of June 30, 2023, up from $2.2 billion at December 31, 2022 (comprised of long-term debt ($9.1 billion) plus short-term debt ($2.6 billion) less cash and cash equivalents and restricted cash ($9.4 billion)). Most of the external debt is borrowed by the parent company on an unsecured basis and bears interest at varying levels based on a combination of fixed and variable interest rates. Gearing (defined as net debt of $4.5 billion divided by total equity of $57.9 billion) at June 30, 2023 was higher at 8% as compared to December 31, 2022.

ArcelorMittal’s $5.5 billion revolving credit facility signed on December 19, 2018, described in the Financings section below, contains restrictive covenants. Among other things, these covenants limit encumbrances on the assets of ArcelorMittal and its subsidiaries, the ability of ArcelorMittal’s subsidiaries to incur debt and the ability of ArcelorMittal and its subsidiaries to dispose of assets in certain circumstances. On April 27, 2021, the revolving credit facility was amended so that the margin payable will be increased or decreased depending on the Company’s performance against two metrics measured annually against pre-defined targets with respect to its environmental and sustainability performance (CO2 intensity of the Company’s European operations and the number of facilities which have been certified by ResponsibleSteel™).

The Facility may be used for general corporate purposes and was fully available as of June 30, 2023.

The margin applicable to ArcelorMittal’s principal credit facilities ($5.5 billion revolving credit facility and certain other credit facilities) and the coupons on certain of its outstanding bonds are subject to adjustment in the event of certain changes in its long-term credit ratings. ArcelorMittal's long-term credit rating was upgraded on August 9, 2021 by Moody's to 'Baa3' with stable outlook. On June 16, 2023, Standard & Poor's upgraded its outlook on ArcelorMittal to positive on expected strengthening of the business and affirmed the 'BBB-' investment grade rating.

The borrowing base facility at ArcelorMittal South Africa remains subject to a financial covenant as of June 30, 2023. Non-compliance with the covenant would entitle the lenders under such facility to accelerate repayment obligations. The Company was in compliance with the financial covenant related to this borrowing as of June 30, 2023.

As of June 30, 2023, ArcelorMittal had guaranteed $122 million of debt of its operating subsidiaries, compared to $92 million as of December 31, 2022. See also note 13 to the interim condensed consolidated financial statements for all other ArcelorMittal guarantees for joint ventures indebtedness of $4.8 billion including $3.4 billion issued on behalf of AMNS India, $454 million issued on behalf of Calvert, $180 million issued on behalf of ArcelorMittal Tubular Products Al Jubail ("Al Jubail") and $365 million in relation to outstanding lease liabilities for vessels operated by Global Chartering Ltd. ArcelorMittal’s debt facilities have provisions whereby the acceleration of the debt of another borrower within ArcelorMittal could, under certain circumstances, lead to acceleration under such facilities.

On March 16, 2020, AMNS Luxembourg Holding S.A. (“AMNS Luxembourg”), a joint venture between ArcelorMittal and Nippon Steel Corporation ("NSC"), entered into a $5.146 billion ten-year term loan agreement with Japan Bank for International Cooperation ("JBIC"), MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, Mizuho Bank Europe N.V., and Sumitomo Mitsui Trust Bank, Limited (London Branch). The proceeds of the loan were used to refinance in full the amounts borrowed by AMNS Luxembourg in connection with the acquisition of ArcelorMittal Nippon Steel India Limited (formerly known as Essar Steel India Limited), including the amounts borrowed under the $7 billion bridge term facilities agreement guaranteed by ArcelorMittal. The obligations of AMNS Luxembourg under the term loan agreement are guaranteed by ArcelorMittal and NSC in proportion to their interests in the joint venture, 60% and 40%, respectively.

On March 31, 2023, AMNS Luxembourg entered into an additional $5 billion loan agreement (‘JBIC co-financing loan’) with the JBIC, MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Mizuho Bank, Ltd. and Mizuho Bank Europe N.V. As for the above-mentioned loan, the obligations of AMNS Luxembourg under the term loan agreement are guaranteed by ArcelorMittal and NSC in proportion to their interests in the joint venture, 60% and 40%, respectively. The proceeds obtained through the JBIC co-financing loan will be used to finance the expansion of AMNS India’s steelmaking capacity at its Hazira plant from 8.6 million tonnes to 15 million tonnes. In addition to the primary steelmaking capacity expansion, the project includes the development of downstream rolling and finishing facilities that will enhance AMNS India’s ability to produce value-added steels for sectors including defense, automotive and infrastructure.

Financings

The principal financings of ArcelorMittal and its subsidiaries are summarized below by category. Further information regarding ArcelorMittal's short-term and long-term indebtedness is

provided in note 8 to the interim condensed consolidated financial statements.

Principal credit facilities

On December 19, 2018, ArcelorMittal signed an agreement for a $5.5 billion revolving credit facility, which incorporates a single tranche of $5.5 billion.

On November 27, 2019 and on November 26, 2020, ArcelorMittal exercised the option to extend the facility's maturity by one year to December 19, 2024 and to December 19, 2025 respectively. The commitments are $5.5 billion until December 19, 2023 and $5.4 billion until December 19, 2025. As of June 30, 2023, the $5.5 billion revolving credit facility was fully available.

On July 27, 2022, the Company entered into a $2.2 billion bridge term facility agreement with a financial institution. The facility could be applied toward the purchase price for the intended acquisition of ArcelorMittal Pecém, as well as the refinancing of its existing indebtedness and the payment of related fees, costs and expenses. The facility was available for 12 months from signing with two extension options of 6 months each at the borrower's discretion. On December 8, 2022, an amount of $1.76 billion was cancelled, following the bond issuances completed on September 20, 2022 and November 29, 2022. After the cancellation, the remaining available amount under the bridge facility was $444 million. On January 31, 2023, the remaining available amount under the bridge facility of $444 million was cancelled.

On September 30, 2010, ArcelorMittal entered into the $500 million revolving multi-currency letter of credit facility (the “Letter of Credit Facility”). The Letter of Credit Facility is used by the Company and its subsidiaries for the issuance of letters of credit and other instruments. The terms of the letters of credit and other instruments contain certain restrictions as to duration. The Letter of Credit Facility was subsequently amended to reduce its amount to $350 million. On July 31, 2019, the Company refinanced its Letter of Credit Facility by entering into a $350 million revolving multi-currency letter of credit facility which initially matured on July 31, 2022. On August 5, 2020, the maturity of the Letter of Credit Facility was extended to July 31, 2023. On November 25, 2020 the amount of the Letter of Credit Facility was increased to $395 million. On June 25, 2021, the maturity of the Letter of Credit Facility was extended to July 31, 2024.

The Company completed several financing transactions during the six months ended June 30, 2023, see note 8 to the interim condensed consolidated financial statements.

On March 14, 2023, the Company through its wholly-owned subsidiary Hera Ermac early repaid 226,666 out of the 666,666 outstanding unsecured and unsubordinated bonds mandatorily convertible into preferred shares of such subsidiary for a total cash consideration of $340 million, see note 6 to the interim condensed consolidated financial statements.

On May 19, 2023, upon mandatory conversion of the remaining 24,290,025 outstanding mandatorily convertible subordinated notes due May 18, 2023, ArcelorMittal delivered a total of 57,057,991 treasury shares (of which 9,396,120 to the Significant Shareholder), see note 6 to the interim condensed consolidated financial statements.

Working capital management

The Company has established a number of programs for sales without recourse of trade accounts receivable to various financial institutions (referred to as True Sale of Receivables (“TSR”)). As of June 30, 2023, the total amount of trade accounts receivables sold amounted to $4.7 billion ($5.3 billion as of December 31, 2022). Through the TSR programs, certain operating subsidiaries of ArcelorMittal surrender the control, risks and benefits associated with the accounts receivable sold. Therefore, the amount of receivables sold is recorded as a sale of financial assets and the balances are removed from the consolidated statements of financial position at the moment of sale.

As part of the Company’s ongoing efforts to improve its working capital position, it continually engages with its customers and suppliers with the aim of improving overall terms, including pricing, quality, just in time delivery, discounts and payment terms. Trade accounts payable have maturities from 15 to 180 days depending on the type of material, the geographic area in which the purchase transaction occurs and the various contractual agreements. The Company’s average outstanding number of trade payable days amounted to 80 over the last 5 years. The ability of suppliers to provide payment terms may be dependent on their ability to obtain funding for their own working capital needs and or their ability to early discount their receivables at their own discretion (the Company estimates that about $3.1 billion of trade payables were subject to early discount by its suppliers as of June 30, 2023 as compared to $2.8 billion as of December 31, 2022). Given the nature and large diversification of its suppliers base the Company does not expect any material impact to its own liquidity position as a result of suppliers not having access to liquidity. As of June 30, 2023, a 5 day decrease in trade payable days would result in a trade payables decrease of $734 million.

ArcelorMittal's material cash requirements in the near and medium term

The Company's cash requirements in the near and medium term are primarily driven by the current commitments, obligations and other arrangements in place as of June 30, 2023. ArcelorMittal has various purchase commitments for materials, supplies and capital expenditure incidental to the ordinary course of business.

As of June 30, 2023, ArcelorMittal had various outstanding obligations mostly related to:

•Guarantees, pledges and other collateral related to financial debt and credit lines given on behalf of third parties and joint ventures,

•Capital expenditure commitments mainly related to commitments associated with investments in expansion and improvement projects by various subsidiaries,

•Other commitments comprising mainly commitments incurred for gas supply to electricity suppliers.

These commitments, obligations and other arrangements will become due in 2023 and beyond. These various purchase

commitments and long-term obligations will have an effect on ArcelorMittal’s future liquidity and capital resources. For further details on commitments and obligations, please refer to note 13 to the interim condensed consolidated financial statements. ArcelorMittal also has various environmental and asset retirement obligations as of June 30, 2023 which are further detailed in note 10 to the interim condensed consolidated financial statements.

The Company expects to service its cash requirements in the near and medium-term with net cash provided by operating activities. In the future, the Company may enter into additional financing facilities if required.

Earnings distribution

On May 2, 2023 at the annual general meeting of shareholders, the shareholders approved the Company’s proposed dividend of $0.44 per share. The dividend amounted to $370 million and payment includes two installments; the first one was paid on June 15, 2023 and the second one will be paid on December 7, 2023.

Equity

Equity attributable to the equity holders of the parent increased to $55.7 billion at June 30, 2023, compared with $53.2 billion at December 31, 2022, primarily due to the net income attributable to the equity holders of the parent of $3.0 billion.

ArcelorMittal held 13.6 million shares in treasury at June 30, 2023 compared to 72.5 million shares at December 31, 2022. At June 30, 2023, the number of treasury shares represented 1.6% of the total issued number of ArcelorMittal shares. The treasury shares were impacted by the share buy-backs and the mandatory conversion of mandatorily convertible subordinated notes described in 'Key transactions and events' and transactions described in 'Corporate Governance' below, in particular the cancellation of 25 million treasury shares.

Research and development, patents and licenses

Research and development expense (included in selling, general and administrative expenses) was $151 million for the six months ended June 30, 2023 as compared to $154 million for the six months ended June 30, 2022. In addition, the Company capitalized research and development for $10 million and $11 million during the six months ended June 30, 2023 and 2022, respectively.

Trend information

All information that is not historical in nature and disclosed under “Business Overview”, and in particular in "Outlook", is deemed to be a forward-looking statement and is subject to and qualified by the information set forth under the “Cautionary statement regarding forward-looking statements”. See also “—Key factors affecting results of operations” above.

Outlook

Based on year-to-date developments and the current economic outlook, ArcelorMittal forecasts global ex-China ASC to grow between 1.0% to 2.0% as compared to 2022, reflecting the latest estimates by region:

•In the U.S., as real demand growth is expected to remain lackluster due to the lagged impact of interest rate rises, ASC in 2023 is now expected to decline between -2% to 0%. ASC forecasts for U.S. have been moderated to reflect

weakness in long products and pipes and tubes while apparent demand for flat products is still forecast to grow.

•In Europe, while the Company continues to assume a marginal decline in real demand in 2023, apparent demand is expected to moderate between -0.5% to +1.5% in 2023. The marginal change to forecasts of European ASC is largely due to a decline in long products demand forecast due to weak construction activity, while apparent demand for flat products is still expected to increase.

•In Brazil, due to the ongoing high interest rate environment, the Company has moderated its real steel consumption estimate in 2023 and forecasts an ASC growth of 0.0% to 2.0%.

•In the CIS region (which includes Commonwealth of Independent States and Ukraine), the Company forecasts some improvement in steel consumption in Ukraine, and expects ASC to grow between 0.0% to 2.0% for the region.

•In India, the Company continues to expect another strong year with ASC growth in the range of 6.0% to 8.0%.

•In China, while economic growth is expected to be broadly stable in 2023, steel consumption is expected to stabilize in 2023 from -1.0% to +1.0% with potential upside dependent on government infrastructure stimulus and production discipline impacts.

During the first half of 2023, ArcelorMittal completed several financing and liability management transactions. Please refer to the "Business overview - Liquidity and capital resources" and "Business overview - Financings" of this report for a summary of these transactions.

•On April 3, 2023, the Company announced that it had completed the 60,431,380 shares buyback program announced on July 29, 2022 under the authorization given by the annual general meeting of shareholders of May 4, 2022. By market close on March 31, 2023, ArcelorMittal had repurchased 60,431,380 shares for a total value of €1,456 million (equivalent to $1,492 million) at an approximate average price per share of €24.10 ($24.68). The Significant Shareholder decided not to participate in the program consistent with the position announced on February 25, 2022.

•On April 28, 2023, the Company announced that 25 million treasury shares were cancelled to keep the number of treasury shares the Company holds within appropriate levels. This cancellation took into account shares already purchased under the 60,431,380 shares buyback announced on July 29, 2022 which completed on March 31, 2023. As a result of this cancellation, ArcelorMittal had 852,809,772 shares in issue (compared to 877,809,772 before the cancellation). Following this cancellation, authorized share capital decreased from $404 million represented by 1,136,418,599 ordinary shares without nominal value as of December 31, 2022 to $395 million represented by 1,111,418,599 ordinary shares without nominal value as of June 30, 2023.

•On May 5, 2023, ArcelorMittal announced the commencement of a new buyback program of up to 85 million shares under the authorization given by the annual general meeting of shareholders of May 2, 2023, to be completed by May 2025. The actual amount of shares that will be repurchased pursuant to this new program will depend on the level of post-dividend free cash flow generated over the period (the Company’s defined policy is to return a minimum of 50% of post-dividend annual free cash flow), the continued authorization by shareholders, and market conditions. The shares acquired under the program are intended primarily to reduce ArcelorMittal’s share capital, to meet ArcelorMittal’s obligations arising from employee share programs; and/or to meet ArcelorMittal’s obligations exchangeable into equity securities.

•On May 19, 2023, the Company delivered a total of 57,057,991 treasury shares upon mandatory conversion of the 24,290,025 outstanding 5.50% mandatorily convertible subordinated notes due May 18, 2023.

In addition, during the first half of 2023, the Company completed the following additional acquisitions:

•On January 3, 2023 and March 10, 2023, ArcelorMittal completed the acquisition of Riwald Recycling ("Riwald"), a state-of-the-art ferrous scrap metal recycling business based in the Netherlands in the framework of its decarbonization strategy and Italpannelli Germany, a German insulation panel manufacturer which complements the existing geographic presence and strengthens the product portfolio of ArcelorMittal Downstream Solutions' construction business, respectively. Riwald operates two fully certified scrap metal yards in Almelo and Beverwijk, the Netherlands, both of which have direct port access. Riwald processed over 330,000 tonnes of ferrous scrap metal in 2021. It sources material from a wide range of suppliers including industrial companies, OEMs, demolition companies, traders, car dismantling companies and regional and national government. Riwald utilizes high-specification technical equipment in the separation of materials. This ensures a high purity of materials at the end of the process and maximizes the recovery from all types of

scrap and waste it collects. The total cash consideration paid for both acquisitions was €144 million ($154 million).

•On March 9, 2023, ArcelorMittal announced that following receipt of customary regulatory approvals it completed the acquisition of Companhia Siderúrgica do Pecém (‘CSP’) (renamed ArcelorMittal Pecém) in Brazil for an enterprise value of approximately $2.2 billion. CSP is a world-class operation, producing high-quality slab at a globally competitive cost. Its facility, located in the state of Ceará in northeast Brazil was commissioned in 2016. It operates a three-million tonne capacity blast furnace and has access via conveyors to the Port of Pecém, a large-scale, deep-water port located 10 kilometers from the plant. The acquisition offers significant operational and financial synergies and brings with it the potential for further expansions, such as the option to add primary steelmaking capacity (including direct reduced iron) and rolling and finishing capacity. Given its location, CSP also presents an opportunity to create a new low-carbon steelmaking hub, capitalizing on the state of Ceará’s ambition to develop a low-cost green hydrogen hub in Pecém.

Sustainable development highlights - leading the decarbonization of the steel industry

•On January 10, 2023, ArcelorMittal Europe – Flat Products and Gonvarri Industries signed a Memorandum of Understanding ("MoU") to cooperate more closely on reducing CO2 emissions and strengthening both companies’ sustainability performance in the automotive market. Gonvarri Industries is a leading company in flat steel processing with annual production of around 5 million tonnes of processed steel and is a major customer of ArcelorMittal Europe – Flat Products.

•On January 27, 2023, ArcelorMittal announced it invested $36 million in Boston Metal. The transaction is the Company’s largest single initial investment to date through its XCarb® Innovation Fund. ArcelorMittal’s investment has led a $120 million Series C fundraising round undertaken by Boston Metal. Other participants in the round include Microsoft’s Climate Innovation Fund and Site Ground Capital, who join Boston Metal’s existing shareholder register which features the likes of Breakthrough Energy Ventures, mining majors Vale and BHP, BMW i Ventures and several cleantech venture capital funds. Founded in 2013, Boston Metal is developing and commercializing a patented Molten Oxide Electrolysis (MOE) platform for decarbonizing primary steelmaking. MOE uses electricity to produce molten steel through a direct, one-step process. The MOE cell is capable of processing a wide range of iron ore grades through high temperature electrolysis, producing relatively impurity-free liquid steel with no accompanying CO2 emissions. As a fully customizable steel manufacturing solution, the modular MOE cells can be scaled until desired production capacity is reached. Boston Metal has raised over $200 million in three fundraising rounds and grown from a team of eight employees in 2018 to over 100 today. It is targeting commercialization of its technology by 2026.

•On February 6, 2023, ArcelorMittal announced the creation of a partnership with market leader Guardini, coated steel manufacturer Cooper Coated Coil (CCC) and coatings manufacturer ILAG to launch a new range of bakeware with a reduced environmental impact. The result of the four-way partnership and a three-year development process is XBake, a range of sustainable bakeware that is sourced with ArcelorMittal’s XCarb® green steel certificates, and made with an innovative per-and polyfluoroalkyl-substances-free, non-stick coating that was developed by ILAG and is applied to steel coils by CCC. XBake was launched at Ambiente, the world's largest and most important international consumer-goods fair, in

Frankfurt on February 3, 2023, at a ceremony involving all four companies.

•On February 17, 2023, the European Commission approved, under EU state aid rules, a €55 million German measure to support ArcelorMittal Hamburg in building the demonstration plant for the production of green steel using renewable hydrogen and €460 million funding to build a DRI-EAF facility in Spain.

•On March 2, 2023, ArcelorMittal and KIRCHHOFF Automotive, which develops and produces complex metal and hybrid structures for body-in-white and chassis, signed a MoU which focuses on developing low carbon-emissions steel for cars and trucks. The agreement covers a number of different areas of development and steel solutions, but its principal focus is to strengthen the two companies’ collaboration on sustainability topics. This includes a project to develop and test the use of ArcelorMittal’s XCarb® recycled and renewably produced Usibor1500® (which is made with recycled steel and 100% renewable electricity) in the high-strength parts that KIRCHHOFF Automotive supplies to leading OEMs in Europe, Asia, and North America.

•Drawing on its know-how and innovative power, ArcelorMittal announced on March 13, 2023, that it will manufacture some of the key symbols of the Paris 2024 Games – the Olympic and Paralympic torches and cauldrons and the large rings and agitos which will be installed in the host city – in steel with a low CO2 footprint, for instance through the use of recycled steel or low carbon energy, thus contributing to the Paris 2024 Olympic and Paralympic Games environmental ambition.

•On March 29, 2023, ArcelorMittal and Bamesa, an international leader in steel service centres (SSCs), signed a MoU that will strengthen both companies’ efforts to reduce CO2 emissions as well as using XCarb® solutions. The MoU focusses on the two companies exploring ways of reducing scope 3 emissions – emissions attributed to purchased steel – as well as increasing and testing the use of recycled steel in low-carbon emissions products. It also commits both companies to increasing the proportion of XCarb® products used in the supply chain for coils, every year between 2024 and 2030.

•On April 18, 2023, ArcelorMittal announced that ArcelorMittal Brazil, will form the joint venture partnership Ventos de Santo Antonio Comercializadora de Energia S.A. ("VdSA") with Casa dos Ventos, one of Brazil’s largest developers and producers of renewable energy projects, to develop a 554 MW wind power project. ArcelorMittal Brazil will hold a 55% stake in the JV, with Casa dos Ventos holding the remaining 45%. The transaction was approved by the Brazilian antitrust authority, CADE, on April 13 and was completed on May 5, 2023. The $0.8 billion project aims to secure and decarbonize a considerable proportion of ArcelorMittal Brazil’s future electricity needs and is estimated to provide 38% of ArcelorMittal’s Brazil’s total electricity needs in 2030. VdSA is equity accounted and ArcelorMittal’s total equity investment will be $0.15 billion. The project will be located in the central region of Bahia, north-east Brazil. The site location has been selected due to several competitive advantages, including high-capacity forecast load factors (in excess of 50%) and a short distance (23 km) to connect to the national electricity grid. There is also the potential to expand the capacity of the project by adding a further 100 MW of solar power. The project is as of the date of this report at an environmental and regulatory permitting stage, with construction work anticipated to start in 2023 and operational commissioning in 2025. ArcelorMittal Brazil will enter a 20-year power purchase agreement with VdSA for the supply of electricity.

•On April 19, 2023, ArcelorMittal announced the collaboration with VELUX Group, as part of VELUX efforts to halve value chain emissions by 2030. The companies will work together to lower the carbon footprint of the steels used in VELUX roof windows, aiming to reduce embedded CO2 by up to 70 percent (depending on the type of steel product used) compared with conventionally produced steel. The quality of steel is particularly crucial for ensuring optimal performance of the hinges used to operate VELUX roof windows and the brackets used to install them. ArcelorMittal’s XCarb® recycled and renewably produced flat steel is produced using a minimum of 75% scrap steel and 100% renewable electricity. It will now be tested in larger volumes in a VELUX factory in Gniezno, Poland, to determine how it performs in hinges and brackets. In parallel, VELUX and ArcelorMittal will work together to lower the carbon footprint of steel used in some other components for roof windows.

•On April 20, 2023, ArcelorMittal announced its collaboration with BP2, the manufacturer of complete solutions for residential construction, to supply low carbon-emissions steel for BP2’s latest product, the SOLROOF integrated photovoltaic roof. BP2’s integrated photovoltaic FIT VOLT panels (components of the SOLROOF system) will be manufactured solely using XCarb® recycled and renewably produced steel.

•On June 7, 2023, ArcelorMittal announced its agreement to supply General Motors (GM) with XCarb® recycled and

renewably produced (RRP) steel, offering significantly reduced CO2 emissions compared to much of the carbon steel available in North America. Material will be supplied from ArcelorMittal Dofasco in Hamilton, Ontario and shipments began during the second quarter of 2023. ArcelorMittal North America’s XCarb® RRP steel is made via the EAF route and contains a stated minimum of 70% scrap, with up to 90% scrap, and does not use carbon offsets to achieve the reduced carbon intensity. XCarb® RRP is a physical steel product. Its lower CO2 intensity has been independently verified with an accompanying Life Cycle Analysis (LCA) that includes Scope 1, 2 and 3 emissions. A confirmation letter verifies the electricity used in the steelmaking process is from renewable sources.

•On June 14, 2023, ArcelorMittal and LanzaTech Global Inc. announced the successful commencement of production from ArcelorMittal’s commercial flagship carbon capture and utilization (‘CCU’) facility in Ghent, Belgium. The €200 million ‘Steelanol’ facility is a first of its kind for the European steel industry, deploying technology developed by leading carbon utilization company LanzaTech. This is the first step toward full operation of a commercial scale facility that will capture carbon-rich waste gases from steelmaking and biologically convert them into advanced ethanol through LanzaTech’s bio-based process. Unlike traditional fermentation, the process ferments gases instead of sugars and uses a biocatalyst instead of yeast. The facility was inaugurated in December 2022, with cold commissioning taking place thereafter. The biocatalyst has now been introduced into the facility (a process called inoculation) to begin growth and verify production of new molecules. In May 2023, the first gases from the steel mill’s blast furnace were safely introduced to LanzaTech’s biocatalyst. After a successful inoculation, initial samples that contained ethanol were produced during the second week of June, demonstrating that the carbon in the gases is being converted into new chemical products. Commercial-scale ethanol production from the bioreactors will follow, with expected ramp up of production in the coming months. This advanced ethanol can then be used as a building block to produce a variety of products, including sustainable transport fuels, packaging materials, apparel, and even cosmetic fragrances, hence helping to advance the decarbonization efforts of the global chemical sector. The ethanol will be jointly marketed by ArcelorMittal and LanzaTech under the Carbalyst® brand name. The Steelanol plant has the annual capacity to produce 80 million litres of ethanol, around half of the total current demand in Belgium. It expects to reduce carbon emissions from the Ghent plant by 125,000 tonnes annually, thereby advancing the EU’s 2030 Climate Target Plan to reduce greenhouse gas emissions by 55% by the end of the decade. Project partners include Primetals Technologies and E4tech with support from CINEA, the European Climate, Infrastructure and Environment Executive Agency. The product samples from the facility mark an important step toward the circular use of carbon and the end of single-use carbon, whereby gases are no longer regarded as waste but as raw materials. In addition, the recycling of carbon means Steelanol’s process of Carbalyst® ethanol production does not compete in any way with food crops, as is the case for traditional methods of ethanol production. The LanzaTech process implemented at the Ghent site is fully flexible: not only can it use industrial gases from today’s steel production methods but also it can adapt as industry transitions to future steel production technologies with increased green hydrogen input. This versatility enables the carbon recycling application to evolve with available residue, waste streams, and green H2. LanzaTech’s process is already employed by three operational commercial facilities, and LanzaTech anticipates the launch of two additional commercial facilities, in Asia, before the end of 2023. Funding for the commercial Steelanol facility was obtained from various sources, including the Flemish government, the Belgian federal government and the European Union’s Horizon 2020 research and innovation program under grant agreement No 656437. Part of the funding was also secured with a loan from the European Investment Bank. The Steelanol facility is expected to reach full operational capacity before the end of 2023.

•On June 14, 2023, ArcelorMittal and John Cockerill announced plans to develop an industrial scale low temperature, iron electrolysis plant,. The Volteron™ (a carbon free, cold direct electrolysis process that extracts iron from iron ore using electricity; on a pilot scale plant, the process has proved to be highly efficient using standard iron ore; the iron plates created during the electrolysis process are then processed into steel in an electric arc furnace) plant is targeted in a first phase to produce between 40,000 and 80,000 tonnes a year of iron plates and to start production in 2027. Once the technology has been proven at this scale, the intention is to increase the plant’s annual capacity to between 300,000 and 1 million tonnes. ArcelorMittal and John Cockerill have been working together on an innovative electrochemical process to transform iron oxide into iron plates for the last few years. The successfully completed project, formerly known as SIDERWIN, has to date been publicly funded through the EU’s Horizon 2020 program. In addition to ArcelorMittal and John Cockerill, project partners have included EDF, Tecnalia, Quantis, University of Aveiro, National Technical University of Athens, Norwegian

University of Science and Technology, Dynergie, Recoy, CFD Numerics and Mytilineos. This next phase of the project will be carried forward as an exclusive partnership between ArcelorMittal and John Cockerill.

•On June 16, 2023, ArcelorMittal confirmed its plan to invest €67 million in a new EAF at its Belval site. This investment is part of a series of projects that were the subject of a MoU signed in September 2022 between ArcelorMittal Luxembourg and the Ministry of the Economy. This MoU confirms the willingness of the Luxembourg government to financially support this type of strategic investment, through the various applicable aid mechanisms. For this project in particular, the subsidies made available by the Luxembourg State amount to approximately €15 million. The new Belval EAF is one of the flagship projects of this MoU. It will offer improved energy efficiency and an increase in steel production capacity in Luxembourg of almost 15%, reaching 2.5 million tonnes of steel per year. With this new facility replacing the current EAF operated since 1997, and with additional investments to be made in other areas of the Belval steel plant, ArcelorMittal Luxembourg plants will be self-sufficient in crude steel production capacity to cover the needs of finished rolled products in Luxembourg. In particular, the Mill A at the ArcelorMittal Rodange site will henceforth be supplied exclusively by this new installation for the production of its numerous ranges of rails and niche products. Electric furnaces produce steel from recycled scrap and can be operated using solely renewable energy. In addition to the advantages of recycling scrap, this process reduces CO2 emissions by a factor of six compared with conventional steel production using blast furnaces. The installation of the new electric furnace in Belval is expected to start in 2023, with commissioning in 2025.

•On June 19, 2023, ArcelorMittal and SEKISUI CHEMICAL announced that their carbon recycling project achieved target ahead of schedule. Both companies have been partnering on a project to capture and reuse CO2 emitted during steelmaking. As part of this partnership, ArcelorMittal and SEKISUI CHEMICAL have been supported by the New Energy and Industrial Technology Development Organization (NEDO), Japan’s national research and development agency, and have launched an “International collaboration on CCU for circular carbon in Steelmaking” (hereafter, the NEDO project), scheduled for three years from 2021. One of the research topics is to develop a fundamental technology for Synthesis Gas (carbon monoxide and hydrogen) production using SEKISUI CHEMICAL’s unique chemical looping technology. Through tests using actual blast furnace gas at ArcelorMittal's plant in Asturias, Spain, a CO2 conversion rate of 90% and a hydrogen conversion rate of 75% has been achieved, higher than the project target of a CO2 conversion rate of 85% or higher and a hydrogen conversion rate of 60% or higher using this technology. To obtain these results, it was important to carry out a CO2 capture process reaching 90% of CO2 purity. As a next step, the two companies will further optimize the conditions, replace the catalyst with a high-performance one, and conduct a long-term test with a higher reaction yield by December 2023. At the same time, they will consider new projects to demonstrate the ability to scale up the new technology. In the NEDO project, CO2 separated and captured from blast furnace gas is converted to Synthesis Gas (a mixture of CO and H2) through a chemical process. The converted syngas is introduced into the blast furnace as a reduction agent to replace coke (CCU for carbon circulation in steelmaking). Through the project, the companies will demonstrate technologies that contribute to the effective use of CO2 and CO2 reduction. In addition to completing the NEDO project, both companies aim to launch a new project to demonstrate the ability to scale up for commercialization.

•On June 21, 2023, the construction of ArcelorMittal's new global headquarters officially started following a groundbreaking ceremony at the building site in the Kirchberg district of Luxembourg City. During the event a steel beam, made with ArcelorMittal’s XCarb® recycled and renewably produced steel, was lowered into place to signal the start of construction, in the presence of Mr Xavier Bettel, Prime Minister of Luxembourg, Mr François Bausch, Deputy Prime Minister, Mr Lakshmi Mittal, Executive Chairman of ArcelorMittal, Mr Aditya Mittal, CEO of the ArcelorMittal Group, Mr Michel Wurth, member of the Board of Directors and Mr Jean-Michel Wilmotte, architect and designer of the project. The location of the new headquarters building reflects ArcelorMittal’s historic ties to Luxembourg, where the company has its head offices as well as five industrial sites producing or processing steel designed by Wilmotte et Associés, with a detailed brief to ‘design a modern, sustainable building that harnesses all the potential of steel from top to bottom’, ArcelorMittal's new headquarters, ArcelorMittal Kirchberg, is a showcase for the use of steel in sustainable construction. The building, which is expected to be commissioned in the first quarter of 2026, incorporates 10,000 tonnes of ArcelorMittal steel, mainly produced in Luxembourg from recycled steel. The beams are made from XCarb® recycled and renewably produced steel, which has a carbon footprint that is seven to eight times smaller than conventional steel, representing a saving of more than 10 tonnes of CO2 per beam. In this way,

ArcelorMittal Kirchberg serves as an exemplar of how low carbon-emissions steel can be used in construction. The building will have a crystal-like appearance, thanks to its structure which is based on an exoskeleton, which spirals outwards and opens onto the city through a façade covered in plants. In addition to its contemporary architecture, the new headquarters offers flexible, modular working and living spaces to ensure a great working environment for employees. For example, each of the 2,600 workstations will benefit from natural light. The building will fully be aligned with three major environmental labels: BREEAM (outstanding level), DGNB (Platinum level) and WELL (Gold level). The completed building will also be a showcase for deconstruction and the reuse of steel in the construction industry. To encourage the next generation of designers to think differently about project using steel, ArcelorMittal Luxembourg will launch an international architectural competition inviting students to submit an architectural project for steel reuse. Working with the hypothesis of reusing a building still under construction will lead students to project themselves into the future, where the climatic, economic and social context will have changed significantly.

•On June 21, 2023, the Labour Inspectorate ordered the temporary administrative closure of part of the Fos-sur-Mer site due to dust and crystalline silica at the Company's steel works. The decision has subsequently been suspended after being reviewed by the Marseille Administrative Court. ArcelorMittal's action plan to strengthen health protection measures has been accelerated (in consultation with the Labour Inspectorate and Trade Unions). The plan contains more than 80 actions including: the search for a product to replace crystalline silica used in continuous casting with the support of our R&D team, an intensive industrial cleaning campaign. All dust collection, ventilation and capture systems are being reviewed and improved where necessary. In addition intensive awareness – raising and training initiatives are continuing, in particular as part of the accelerated introduction of ventilated breathing masks (by the end of July, 687 such masks will have been distributed to all relevant employees at the steel mill).

•On June 28, 2023, ArcelorMittal and Snop, a major tier-one European automotive supplier, announced that they signed a sustainability-focussed MoU, which also includes a commitment to trial the use of high strength, low carbon-emissions steel in structural car parts. The MoU seeks to strengthen the two companies’ cooperation on environmental sustainability, specifically through the use of XCarb® solutions that contribute to the decarbonization of the automotive sector. The MoU includes an agreement to trial the use of Usibor®, a high-strength steel, made using ArcelorMittal’s XCarb® recycled and renewably produced steel. More broadly, the MoU covers the supply and purchase of other XCarb® solutions including XCarb® green steel certificates. Usibor® manufactured with XCarb® recycled and renewably produced substrate, typically has a CO2 footprint that is almost 70% lower compared with conventionally produced steel. High-strength structural car parts, used in the frame of a vehicle, have already been manufactured by the Snop and ArcelorMittal teams, with the first tests of the parts underway.

Recent developments

•On July 5, 2023, ArcelorMittal announced that CHAR Technologies ("CHAR") has been selected as the winner of its inaugural XCarb™ Accelerator Program, and invested $5 million in CHAR through ArcelorMittal’s XCarb™ Innovation Fund. ArcelorMittal launched the XCarb™ Accelerator Program in mid-2022. The program – a search for the best companies and brightest breakthrough technologies that hold the potential to accelerate the decarbonization of the steel industry – received an overwhelmingly positive response, with over 90 start-ups from five different continents submitting applications across seven distinct technology domains. The Accelerator Program winner, Ontario, Canada based CHAR is developing a high temperature pyrolysis (‘HTP’) technology that transforms organic waste streams into one of two valuable energy outputs: a high-calorific value and hydrogen-rich syngas that can be used as a replacement for natural gas or to make green hydrogen; and biocarbon - made from the remaining solids after the HTP process - which can be used as a biochar fertilizer to improve soil health, a pollutant filter or as biocarbon to replace fossil coal in industrial processes. ArcelorMittal’s Canadian flat steel operation, ArcelorMittal Dofasco, has been collaborating with CHAR to test the use of its biocarbon as a partial replacement for fossil coal in its steelmaking processes, with encouraging results. CHAR’s biocarbon enables an approximate 91 per cent reduction in greenhouse gas emissions compared to metallurgical coal and has been tested and validated by ArcelorMittal Dofasco since 2021. ArcelorMittal Dofasco has therefore signed a memorandum of understanding with CHAR for the purchase of biocarbon from CHAR’s Thorold, Ontario facility that will enable larger scale trials in the coming years.

•On July 20, 2023, the European Commission approved €850 million for Dunkirk (2.5 million tonnes DRI and 2 new EAFs). This follows the European Commission approval on June 22, 2023, of the €280 million state aid which the