This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words "believe", "expect", "anticipate", "target" or similar expressions. Although ArcelorMittal's management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal's securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the "SEC") made or to be made by ArcelorMittal, including ArcelorMittal's latest Annual Report on Form 20-F on file with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.
Non-GAAP/Alternative Performance Measures
This document includes supplemental financial measures that are or may be non-GAAP financial/alternative performance measures, as defined in the rules of the SEC or the guidelines of the European Securities and Market Authority (ESMA). They may exclude or include amounts that are included or excluded, as applicable, in the calculation of the most directly comparable financial measures calculated in accordance with IFRS. Accordingly, they should be considered in conjunction with ArcelorMittal's consolidated financial statements prepared in accordance with IFRS, including in its annual report on Form 20-F, its interim financial reports and earnings releases. Comparable IFRS measures and reconciliations of non-GAAP/alternative performance measures thereto are presented in such documents, in particular the earnings release to which this presentation relates.
Page 2
Our approach to sustainable development
Sustainable development underpins the Company's purpose: Inventing smarter steels for a better world
ArcelorMittal is committed to building solutions for the sustainable development of society
The Board's Appointments, Remuneration, Corporate
Governance & Sustainability Committee oversees progress on SD each quarter, chaired by lead independent director
Materiality is assessed on ongoing basis through bottom up and top down processes. Key issues flagged to ARCGS.
Our operations are underpinned by a programme of independent ESG certification: IRMA and ResponsibleSteel
Safety is our priority: Remain committed to the journey towards zero harm
Health & Safety of the Company's workforce is of paramount importance
Health and safety performance (LTIF)*
3.1
ArcelorMittal excluding ArcelorMittal Italia 2.5
1.9 1.8
1.4
1.0
Protecting the health and wellbeing of employees remains the Company's overarching priority with ongoing strict adherence to World Health Organisation guidelines and specific government guidelines have been followed and implemented.
We continue to ensure extensive monitoring, introduced very strict sanitation practices, continue to enforce social distancing measures at all operations, and have implemented remote working wherever possible and provided essential personal protective equipment to our people.
Company's efforts to improve the Group's Health and Safety record will continue to focus on further reducing the rate of severe injuries and fatality prevention.
ArcelorMittal
including ArcelorMittal Italia**
1.21
0.85
0.85
0.81
0.82
0.78
0.92
0.69
0.75
0.60
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
9M'20
Page 5
* LTIF = Lost time injury frequency defined as Lost Time Injuries per 1.000.000 worked hours; based on own personnel and contractors; A Lost Time Injury (LTI) is an incident
that causes an injury that prevents the person from returning to his next scheduled shift or work period.
ArcelorMittal Italia previously known as ILVA. 3Q'20 LTIF rate of 0.95x (incl. ArcelorMittal Italia) vs. 0.77x in 2Q'20 and 1.36x in 3Q'19; LTIF excluding ArcelorMittal Italia of 0.56x in 3Q'20 vs. 0.50x in 2Q'20 and 0.82x in 3Q'19.
Steel in a Low Carbon and Circular Economy
Leadership on climate strategy - overview
Net zero target by 2050 for the Group made in September '20
Group CO2 target by 2030 to be published in second global Climate Action report
Europe target of 30% CO2 reduction by 2030 already in place
First 'Climate Action in Europe' report released June'20, laying out our roadmap to 2030, in line with the EU's Green Deal.
Emphasis that effective policy support is critical to the achieving the full potential of the technology we are developing.
This includes an effective EU Carbon Border Adjustment to ensure a level playing field.
Customer offering of green steel* by end 2020 rising to 600kt by 2022
Steel is expected to remain thematerial of choice for economic development & improved living standards
Net zero across the group by 2050
30% by 2030 in Europe
Page 7
* The Company is offering green steel using a system of certificates. These will be issued by an independent auditor to certify tonnes of CO2 savings achieved through
the Company's investment in decarbonization technologies in Europe. Net-zero equivalence is determined by assigning CO2 savings certificates equivalent to CO2 per
tonne of steel produced in 2018 as the reference. The certificates will relate to the tonnes of CO2 saved in total, as a direct result of the decarbonization projects being
implemented across a number of its European sites
Steel: a permanent material, recycled again and again…
Steel is very easy to recycle - our recycle rate outperforms the materials we compete with
Recycling end of Life
Plastics
Timber
Concrete
Steel
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Page 8
Primary steel will continue to be needed to meet global demand until 2100
Availability of scrap is limited due to its "finite" nature, dependent on disposal at end of life of products, equipment and buildings. Decarbonisation efforts must focus on primary steelmaking.
Amount of secondary sources will increase over the coming decades; electricity will become green over this period
Still, the world will continue to rely on primary sources to produce steel in 2050
Today we use coal and natural gas as energy; steel industry will have to transition to clean energy sources
Page 9
*ArcelorMittal estimates
Steel is essential in the energy transition
Steel intensity in energy sector is increasing with the transition to low carbon sources of energy generation
[ton steel /MW*]
300
CSP
wind
200
coal-fired
nuclear
gas-fired
hydro
100
Page 10
* steel consumptions per installed MW capacity
Sustainable development runs throughout our Company
Our purpose is to invent smarter steels for a better world
Our innovations offer our customers solutions to enhance their contribution to a low carbon and circular economy.
Steligence enables architects and engineers to design building solutions that minimise material use while maximising space, flexibility and end of life recyclability
Our newS-inmotion® customisable chassis steel solutions enable carmakers to extend range and enhance safety at the most affordable cost.
Magnelis® offers enhanced corrosion resistance for solar projects in harsh conditions, even in deserts and on water.
The Company partners withEcoCem to produce low-emissions cement from blast furnace slag
Offer green steel to customers by way of a certification system linked to CO2 savings, achieved through investment in decarbonization technologies, starting in 2020, with plans to scale up this offer to 600kt by 2022
Page 11
Steligence key figures
11%
24%
11% cost savings across facade,
24% saving in construction
stairs and core elements due to
costs due to construction
optimised space and height
speeds twice as fast as
concrete equivalents
39%
39% foundation cost savings due to steel foundation solutions, weighting less than half equivalent structures
Baseline
Optimised
scenario
steel scenario
Baseline
Optimised
scenario
steel scenario
Page 12
Our climate strategy for low-emissions steelmaking
ArcelorMittal roadmap to low-emissions steelmaking in Europe
EAFfurnace technology to increase steel produced using scrap
Disproportionate increase in scrap consumption in Europe would lead to shift in scrap trade flows, leading to increased iron ore based steel production in laxer CO2 jurisdictions outside of Europe
Page 15
Two routes to carbon neutral steel: 1) Smart carbon with hydrogen
Replacing coal, with renewable / recycled carbon
Page 16
Two routes to carbon neutral steel: 1) Smart carbon with hydrogen
Smart Carbon provides
Carbon neutral steel
Carbon neutral cement
Recycled carbon materials
Evolving existing Blast Furnace technology, with use of bioenergy and incorporating carbon capture, storage and use; incorporating hydrogen as reductant - longer term this will be green hydrogen
Page 17
Smart carbon - our technologies
Torero
Industrial scale demo plant in Ghent, Belgium converting waste biomass into biocoal via two reactors, each producing 40kt bio-coal/yr.
€50m investment cost. Status: under construction Production expected to start via reactor #1 2022 and reactor #2 2024
IGAR
Pilot project in Dunkirk, France to capture waste CO2 and waste hydrogen from steelmaking and convert into reductant gas. €20m project budget Completion expected 2022
Carbalyst (Steelanol)
Industrial scale demo plant inGhent, Belgium capturing carbon off-gases and converting into 80m litres recycled carbon ethanol pa. €165m investment cost
Status: under construction Production expected to start 2022
3D
Pilot project in Dunkirk, France to capture CO2 off-gases (0.5 metric tonnes of CO2/hour) for transport/storage.
€20m project budget
Completion expected 2021
Page 18
Smart carbon - hydrogen in the BF complements circular carbon
Several projects using increased hydrogen in blast furnaces across Europe, including:
BF gas injection across Flat Products sites using H2- containing gases from different sources.
Grey hydrogen at Asturias starting in 2021
IGAR project Dunkirk using plasma technology to create a reducing gas from waste gases, to enable gas injection in the BF
A number of other hydrogen projects are planned, pending innovation funding
Page 19
Two routes to carbon neutral steel: 2) Hydrogen DRI-based route
H2
HBI
H2 HamburgIndustrial scale demo producing direct reduced iron via 100% hydrogen at existing plant in Hamburg, Germany to produce 100,000t sponge iron pa. Research project and feasibility study ongoing Production start up expected2023-5dependent on funding
Page 20
Costs- reaching carbon neutrality by 2050?
Investment
Production cost
needed
increase
ArcelorMittal Europe
Clean energy
steel footprint
infrastructure
Smart Carbon
€15-25 billion
€15-1651 billion
+30-60%1
Innovative DRI route
€30-40 billion
€40-2002 billion
+50%-80%2
Lower end of range leveraging bioenergy and carbon capture storage (CCS) infrastructure; high end of range leveraging green hydrogen infrastructure
Lower end of range leveraging carbon capture storage (CCS) and blue hydrogen infrastructure; high end of range leveraging green hydrogen infrastructure
Page 21
Policy enablers
IEA steel roadmap (October 2020)
uses Sustainable Development Scenario which envisages limiting global temperature increase to 1.8ºC (66% probability) and sonet zero by 2070 for the industry.
average carbon intensity of steel should fallto 0.6tCO2/ts by 2050 - a 60% reduction in the average sectoral direct CO2 intensity of crude steel since 2019
acknowledging the challenges for steel companies of adopting higher cost low emissions technologies whilst maintaining competitiveness;
Level playing field is a 'necessary enabling condition'
"New technology must be deployed at a blistering pace, with new infrastructure to boot."
Page 23
Carbon neutral steel
We bring key pieces of the puzzle; but we need policymakers to complete the missing pieces
Page 24
Creating an environment where carbon-neutral steel is more competitive than steel that is not carbon-neutral
Policy Landscape- Building key EU policy enablers for low-emissionssteelmaking
SEQUENCE OF SUPPORT
MARKET PULL
Carbon tax for final products
'Net zero steel' product standard
Carbon performance as purchasing criterion
ESSENTIAL EXTERNAL CONDITIONS
Access to affordable renewable energy
Building the necessary infrastructure (capacity)
FUNDING
Supporting technology innovation:
Incentive for transition investments:
• Innovation Funding
• Compensation for higher structural costs with
Contract for Difference (needs change of
State Aid rules)
KEY ENABLERS FOR DECARBONISATION
• Level playing field: Carbon borderadjustment
• Focused sustainable finance criteria
Circular economy rules and progress
Page 25
Green steel
New commercial offering:
Response to rising customer demand for low carbon steel
ArcelorMittal is now offeringgreen steel* 30kt this year rising to 600kt in 2022
System of CO2 savings certificates, issued by an independent auditor, equivalent to the CO2 per tonne of steel produced in 2018 as a reference
CO2 savings linked to the Group's investments in decarbonization technologies. Starting with Carbalyst and Torero technologies, and increased hydrogen injection in blast furnace.
The certificates will relate to the tonnes of CO2 saved in total, as a direct result of the decarbonization projects being implemented across a number of its European sites.
Page 26
Explosion of net zero collaborations driving commitment, action and change
What stakeholders want to know
What does it
mean to market
responsibly
sourced steel?
How to drive
What does it
What does it
What does it
What does it
What will it take
market
mean to market
mean to finance
mean for a steel
mean to be a net
for the steel
demand for low
steel as a low
activities aligned
company to set
zero aligned
industry to get
carbon steel?
carbon product?
with net zero?
a SBT?
company?
to net zero?
Responsible
Steel Zero
"net zero
buyers group
Steel
steel"
ETC
customer expectations
When is my company /product net zero?
Net Zero Steel
SBTI Net zero
EU taxonomy
Pathway
principles
Meth'y Project
CA100
benchmark
SBTI
ACT
Investor expectations
What portfolio is aligned with net zero?
IEA
Net zero steel roadmaps
ETC
Government expectations
What policies will drive
net zero steel?
Market share
ESG profile
Cost of Finance
ESG screening
Policy support
Ebidta
Driving the transition
Page 27
ArcelorMittal is strategically engaging in all these conversations
ResponsibleSteel
A new global sustainability standard for the steel industry
Providing a multi-stakeholder forum to build trust and achieve consensus;
Developing standards, certification and related tools;
Driving positive change through the recognition and use of responsible steel makers and products.
Page 29
Multi-stakeholderstandard
Independent assurance and oversight
Intended to drive up standards over time
Value to customer and steelmaker
ResponsibleSteel members
Business members
Anglo-American
Aperam
ArcelorMittal
Australian Steel Mill Services
BlueScope
BMW
Carport Central
CLN Group
Daimler
HARSCO
HBM Group
Heathrow
HSBC
Lendlease
Outokumpu
Tata Group
Teck
VAMA
Venlaw Park
Voestalpine
Civil society members
CDP
Clean Air Task Force (CATF)
Fauna & Flora International
IndustriALL
IUCN
Mighty Earth
The Climate Group
We Mean Business
Associate members
ACRS
Afnor Group
AURA Financial
Australian Steel Institute
Better Coal
CARES
Challenge Sustainability
Climate Bond Initiative
DNV GL
EGGA
Equitable Origin
European Outdoor Group
Exova - BM Trada
Green Building Council of Australia (GBCA)
GUTcert
HERA
International Manganese Institute (IMnI)
International Zinc Association
IRMA
Levin Sources
Lloyds Register Germany GmbH
MAC-TSM
MERG
Mineria Responsable Consultores
Pacific Institute
RTQMS
Russian Academy of Sciences - Institute of Geography
Sourcemap
Steel Research & Technology Mission of India
Sustainability Assurance Services (SAS) Global
Sustainable Steel Council
Track Record Global
United Certification Systems (UCS)
University of Waterloo
Page 30
Twelve principles
Governance
Principles
Corporate Leadership
Social, Environmental, Governance Management Systems
Page 31
Social
Principles
Occupational Health and Safety
Labour Rights
Human Rights
Local Communities
7. Stakeholder Engagement and Communication
12. Decommissioning and Closure
Environment
Principles
Climate Change and Greenhouse Gas Emissions
Noise, Emissions, Effluents
and Waste
Water Stewardship
Biodiversity
ArcelorMittal commits to ResponsibleSteel Site Certification
Target: all Europe Flat sites to be ResponsibleSteel certified by end 2021.
"Responsible production techniques and standards have become increasingly
important to our customers and
consumers. It's at the heart of how we do business, giving our customers the reassurance that we meet their sustainability expectations."
Geert Van Poelvoorde, CEO
ArcelorMittal Europe - Flat Products
Bremen
Gent
Geel
Eisenhüttenstadt ZKZ
Chorzow
Dabrowa Gornicza
Dunkerque
Genk
Krakow
Dèsvres
Liège
Swietochlowice
Mardyck Mouzon
Sosnowiec
Montataire
Florange
Basse-Indre
Asturias
St. Chély
Sestao
Etxebarri Fos
Lesaka
Sagunto
Page 32
ResponsibleSteel will work with mining certification schemes
ArcelorMittal Mining has committed to IRMA certification of all marketable sites by 2025
ArcelorMittal Mining Canada has already achieved assurance against TSM
We have asked our top suppliers of coal and iron ore to join one of these schemes.
Page 33
Appendix
Torero
Reducing iron ore with waste carbon
•Developing our first industrial-scale Torero demonstration
Torero technology
plant in Ghent, Belgium, with two reactors
Targets the production of 'circular carbon' inputs, such asbio-coalfrom waste wood to displace the fossil fuel coal currently injected into the blast furnace
€50 million investment; aims to convert 120,000 tonnes of waste agricultural and forestry residues into bio-coal annually
Production via first reactor expected 2022; and via second reactor 2024
Future projects would see expansion of sources of circular carbon to other forms of bio- and plastic waste
A 'smart carbon' technology
Page 35
Carbalyst®
Capturing carbon gas and recycling into chemicals
• Working with LanzaTech in Ghent, Belgium, to build first
Carbalyst® technology
industrial-scale demonstration plant to capture carbon off-
gases from the blast furnace and convert into a range of
Carbalyst® recycled carbon products
Project started in 2018; €165m investment cost; completion expected 2022; will capture ~15% of available waste gases and convert into 80m litres of ethanol annually
LCA studies predict aCO2reduction of up to 87% from Carbalyst® bio-ethanolcompared with fossil transport fuels
This alone has the potential to reduce CO2 emissions equivalent to 100,000 electrical vehicles on the road or 600 transatlantic flights annually
A 'smart carbon' technology
Page 36
IGAR: reforming carbon to reduce iron ore
Reforming carbon from waste gases or plastics to reduce iron ore
The IGARpilot project aims to capture waste CO2 from the blast furnace and convert it into a synthetic gas (syngas) that can be reinjected into the blast furnace in place of fossil coal.
In Dunkirk, ArcelorMittal is running a €20 million project, supported by the French ADEME, to construct a form and test the syngas.
Future plans to reform waste plastics
The IGAR process
A 'smart carbon' technology
Page 37
H2 Hamburg
Reducing iron ore with hydrogen via the DRI
• Industrial scale demonstration project at our Hamburg site
Reducing iron ore with hydrogen
Innovative DRI installation on 100% pure hydrogen for the direct reduction of iron ore for the steel production process
Installation will generate hydrogen from natural gas and/or from the waste gases at the existing plant and demonstrate the hydrogen technology with an annual production of 100,000 tonnes of iron per year
In the future, the plant should also be able to run on green hydrogen (generated from renewable sources) when it is available in sufficient quantities at affordable prices.
Production start up expected 2023-5 dependent on funding
Page 38
Carbon capture: capturing fossil fuel carbon for storage or reuse
"Carbon2Value"
Carbon Capture & Storage
Developing cost-effective technologies to capture and separate CO2 from our waste gases, and liquefy it for subsequent transport and storage or reuse.
Combining this with a circular carbon energy input would further reduce CO2 emissions.
A pilot plant to capture CO2 has been built in Gent, together with DOW Chemicals as part of the Carbon2Value project.
"3D"
€20m pilot project in Dunkirk, France to capture CO2 (0.5 metric tonnes of CO2/hour) for transport/storage using only low-temperature waste heat.
Completion expected 2021
Page 39
Policy requirements- the 'missing pieces'
The medium-term market conditions needed include:
Creating an environment where carbon-neutral steel is more competitive than steel which is not carbon neutral
A fair competitive landscape that accounts for the global nature of the steel market, addressing domestic, import and export steel dynamics, as well as the distinction between primary and secondary sources to make steel.
Access to finance: innovation funding and compensation for high costs of roll out.
Access to abundant, affordable clean energy: the scale of the steel industry's energy needs are such that concerted cross-sector and government efforts will be required to develop the necessary clean energy infrastructure.
Public instruments to accelerate innovative technology deployment to transition to carbon neutral steelmaking.
Page 40
The European Green Deal as the EU's recovery strategy
Funding for low carbon transition:
Innovation fund (€10bn for 7yrs) - ArcelorMittal has made several applications
ArcelorMittal SA published this content on 10 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 11:36:05 UTC
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