ArcelorMittal (MT) 20-F2022 FY Annual report (foreign)

ArcelorMittal is one of the world’s leading integrated steel and mining companies. ArcelorMittal is the largest steel producer in Europe and among the largest in the Americas, second largest in Africa and the sixth largest steel producer in the CIS region and has a smaller but growing presence in Asia.

ArcelorMittal has steel-making operations in 16 countries, including 37 integrated and mini-mill steel-making facilities. As of December 31, 2022, ArcelorMittal had approximately 154,352 employees.

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’s mining operations produce various types of mining products including iron ore lump, fines, concentrate, pellets, sinter feed and coking coal.

As a global steel producer, the Company is able to meet the needs of different markets. Steel consumption and product requirements clearly differ between developed markets and developing markets. Steel consumption in developed economies is weighted towards flat products and a higher value-added mix, while developing markets utilize a higher proportion of long

products and commodity grades. To meet these diverse needs, the Company maintains a high degree of product diversification and seeks opportunities to increase the proportion of higher value-added products in its product mix.

ArcelorMittal's success is built on its core values of sustainability, quality and leadership and the entrepreneurial boldness that has empowered its emergence as the first truly global steel and mining company. Acknowledging that a combination of structural issues and macroeconomic conditions will continue to challenge returns in its sector, the Company has adapted its footprint to the new demand realities, redoubled its efforts to control costs and repositioned its operations with a view toward outperforming its competitors. ArcelorMittal’s research and development capability is strong and includes several major research centers as well as strong academic partnerships with universities and other scientific bodies.

Against this backdrop, ArcelorMittal's strategy is to leverage four distinctive attributes that will enable it to capture leading positions in the most attractive areas of the steel industry’s value chain, from mining at one end to distribution and first-stage processing at the other: global scale and scope; superior technical capabilities; a diverse portfolio of steel and related businesses, one of which is mining; and financial capabilities. The Company’s strategy is further detailed under “Business overview—Business strategy”.

As shown by the following graph, ArcelorMittal has a diversified portfolio of steel and mining products to meet a wide range of customer needs across many steel-consuming sectors, including automotive, appliance, engineering, construction, energy and machinery and via distributors.

ArcelorMittal’s facilities have good access to shipping facilities, including through ArcelorMittal’s own, or partially owned, 16 deep-water port facilities and linked railway sidings.

S-in motion® projects for electrical cars in the C-segment as well as for the plug-in hybrid C-segment were completed in 2019. There are multiple specificities for BEVs: shorter front module, necessity to protect batteries against crash, lowering of the center of gravity, huge additional weight due to batteries, etc. These specificities require rethinking crash management. S-in Motion® BEV for SUV is a catalog of steel solutions adapted to this new type of vehicles. Advanced and especially ultra-high strength steels, innovative press hardened steels, laser welded blanks are especially highlighted as key solutions for an optimal performance (safety/weight) and battery safety. The growth of various types of electric vehicles will impact design and manufacturing. For instance, new large mass batteries change the mass distribution of a vehicle and impact the design and manufacturing of the chassis and wheels. Battery protection provides another example: both the battery box and body

structure have to protect the battery in the event of a crash. AHSS products are among the most affordable solutions on the market for these specific applications. In a context where the supply of electric vehicles, and especially BEVs are expected to grow quickly, new projects have been launched to address these new trends.

In the automotive industry, ArcelorMittal mainly supplies the geographic markets where its production facilities are located in Europe, North and South America, South Africa and China through Valin ArcelorMittal Automotive Steel Co., Ltd (“VAMA”), its joint venture with Hunan Valin. VAMA’s product mix is oriented toward higher value products and mainly toward the OEMs to which the Company sells tailored solutions based on its products. With sales and service offices worldwide, production facilities in North and South America, South Africa, Europe and China, ArcelorMittal believes it is uniquely positioned to supply global automotive customers with the same products worldwide. The Company has multiple joint ventures and has also developed a global downstream network of partners through its distribution solutions activities. This provides the Company with a proximity advantage in virtually all regions where its global customers are present.

In 2020, ArcelorMittal was OEM qualified for galvanized Fortiform® 980 material, and sourced for the first time ever on all new vehicle platforms launching throughout 2021 and 2022. Fortiform® 980 is an advanced grade of steel designed specifically for the auto industry, it offers leading-edge formability and strength with superior weldability. In 2022, the automotive industry’s priority turned towards the simplification of the vehicle manufacturing complexity linked to the rising importance of electrical vehicles. ArcelorMittal’s response is the ArcelorMittal Multi-Part Integration™ ("MPI") concept integrating a large number of parts into one single component combining PHS (Usibor®) and laser welding technology. Examples of MPI are the rear H-Frame and the double door ring. In 2022, the Company launched an H-frame project in China with Dongfeng Voyah, and after the huge success of MPI door-ring concepts in the U.S. and China (5 million parts produced in 2022), the Company succeeded in a breakthrough of Door-Ring concept with several OEMs in Europe.

renewably produced was announced in July 2022 to be in the final stages of development as part of the partnership with Gestamp. See "—Sustainable development highlights - leading the decarbonization of the steel industry".

For further details on the new products under development, see "Business overview—Research and development”.

In 2020, the Company successfully reduced fixed costs, including through temporary measures, in line with lower production resulting from the impacts of the COVID-19 pandemic. This reduction was achieved through significant savings in labor cost (including temporary salary reductions, utilizing the available economic unemployment schemes to match workforce to operating rates, temporary layoffs, reduction/elimination of contractors, reduced overtime, etc.), reduction in repairs and maintenance expenses (given lower operating rates) and savings in selling, general and administrative expenses. The comprehensive measures taken to “variabilize” fixed costs were critical to protecting profitability and cash flows. As economic activity recovered during the year, the Company responded by restarting or increasing production, leading to the reversal of some of these temporary savings. At the same time, the Company remained focused on structural cost improvements to appropriately position its fixed cost base for the post-COVID-19 operating environment. These savings were expected to limit the increase in fixed costs as activity and production levels recovered, thus leading to lower fixed costs per tonne. In total, $1.0 billion of structural cost improvements were identified within this fixed cost reduction program which was expected to be fully realized in 2022. In 2021, the Company achieved $0.6 billion of fixed cost savings relating to its previously announced $1.0 billion structural improvement plan. Savings were achieved through productivity gains and footprint optimization (following closures at Kraków, coke plant in Florange, and Saldanha); and SG&A savings including a 20% reduction in corporate office costs including headcount reduction. The Company did not make progress against its plan related to repairs and maintenance following the decision taken to maintain such expenditures at higher levels to ensure operational reliability.

In February 2022, the Company announced a new three-year $1.5 billion value plan focused on creating value through well-defined commercial and operational initiatives. This plan did not include the impact of strategic capital expenditure projects (which will be followed separately). The plan includes commercial initiatives, including volume/mix improvements and operational improvements (primarily in variable costs). The plan aimed at protecting operating income potential of the business from rising inflationary pressures, improving its relative competitive position vis-a-vis its peers and supporting sustainably higher profits.

The value plan has progressed during 2022 and is on track. Several actions were taken in 2022 which yielded improvement of $0.4 billion (approximately 25% of the plan). Examples of the initiatives undertaken are as follows:

With the ongoing focus to execute and deliver the value plan initiatives, the Company anticipates improvements in excess of $1.1 billion over the next 2 years.

In recent years, the Company has focused on improving its costs through its Action 2020 program and non-core asset disposals as well as through some strategic M&A activity including significant acquisitions in 2022. In 2020, the Company sold ArcelorMittal USA and on April 14, 2021, the Company created a joint venture (Acciaierie d'Italia) with the Italian government. In 2022, in the framework of its decarbonization strategy, ArcelorMittal acquired four scrap metal recycling businesses in Europe in order to enhance its scrap supply security and sufficiency as well as an 80% interest in voestalpine's world-class Hot Briquetted Iron ("HBI") plant in Texas subsequently renamed ArcelorMittal Texas HBI LLC ("ArcelorMittal Texas HBI"). It also announced the acquisition of Companhia Siderúrgica do Pecém (‘CSP’) in Brazil, a world class asset, producing the highest quality slab at a globally competitive cost. The acquisition is expected to close during the first quarter of 2023. For further details please see "Introduction—Key transactions and events in 2022".

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

ArcelorMittal’s agent for U.S. federal securities law purposes is:

ArcelorMittal maintains an Internet site at www.arcelormittal.com. Information contained on or otherwise accessible through this Internet site is not a part of this annual report. All references in this annual report to this Internet site and to any other Internet sites (other than to specific documents furnished to or filed with the SEC and specifically incorporated by reference herein) are inactive textual references and are for information only.

The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at www.sec.gov.

Any request for documents may be sent to: company.secretary@arcelormittal.com or ArcelorMittal’s registered office.

ArcelorMittal’s sustainable development information is detailed in the Integrated Annual Review that will be published during the second quarter of 2023 and will be available within the Corporate Library on www.arcelormittal.com. For further information, please refer to the section "Sustainable Development".

ArcelorMittal’s shares (also referred to as "ordinary shares" or "common shares" throughout this report) are traded on several exchanges: New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). Its primary stock exchange regulator is the Luxembourg CSSF ("Commission de Surveillance du Secteur Financier"). ArcelorMittal’s CSSF issuer number is E-0001.

ArcelorMittal’s 5.50% Mandatorily Convertible Subordinated Notes ("MCNs") due 2023 issued in May 2020 are listed on the New York Stock Exchange.

ArcelorMittal is a member of more than 145 indices including: STOXX Europe 600, S&P Europe 350, CAC40, MSCI Pan-Euro, Bloomberg World Index, IBEX 35, Euronext Paris CAC Basic Materials Index, DAXglobal Steel EUR Price and Euronext Amsterdam AEX Basic Materials Index. Recognized for its commitments to sustainable development, ArcelorMittal is also included in the FTSE4Good Index, Euronext Vigeo Europe 120 and the Euronext Most Advanced Benelux 20. Further, ArcelorMittal has been participating in CDP Climate since 2005 and the United National Global Compact since 2003.

During 2022, the price of ArcelorMittal shares decreased by 18% in dollar terms compared to 2021 year on year; the chart below shows a comparison between the performance of ArcelorMittal’s shares and the Eurostoxx600 Basic Resource (SXPP).

On May 4, 2022, at the annual general meeting of shareholders, the shareholders approved the dividend of $0.38 per share proposed by the Board of Directors. The dividend amounted to $332 million and was paid on June 10, 2022.

In accordance with its capital return policy, the Company expects to pay a base annual dividend (to be progressively increased over time). In addition, 50% of the amount of free cash flow (calculated as net cash provided by operating activities less purchases of property, plant and equipment and intangibles ("capital expenditures") less dividends paid to non-controlling shareholders) remaining after paying the base annual dividend is allocated to a share buyback program. Should the ratio of net debt to operating income (loss) less depreciation, impairment and special items be greater than 1.5x then the share buyback will not be made.

During 2022, as part of its capital return policy and pursuant to the authorization given by the annual general meeting of shareholders on June 8, 2021 and May 4, 2022, ArcelorMittal completed two share buyback programs and announced a third share buyback program which remains outstanding. Including the $8.7 billion from share buyback programs that were completed in 2020 and 2021 and $2.9 billion from shares repurchased during 2022, the Company returned in total $10.5 billion to shareholders under the above-mentioned capital return policy. Considering the shares repurchased in 2022, a further approximately $0.1 billion of repurchases will be undertaken to complete the 2022 capital return. Additional buybacks under the outstanding buyback program announced in July 2022 will be

allocated to the 2023 capital return (targeting 50% of post-dividend free cash flow as per the policy). To ensure sufficient allocation for the 2023 capital return, the Company will request additional authority from shareholders at the annual general meeting of shareholders in May 2023. For further information on buybacks see section "Purchases of equity securities by the issuer and affiliated purchasers" below.

In February 2023, the Board of Directors recommended an increase of the base annual dividend to $0.44/share (from $0.38/share paid in 2022) to be paid in two equal installments in June 2023 and December 2023, subject to the approval of shareholders at the annual general meeting of shareholders in May 2023.

ArcelorMittal has a dedicated investor relations team at the disposal of analysts and investors. By implementing high standards of financial information disclosure and providing clear, regular, transparent and even-handed information to all its shareholders, ArcelorMittal aims to be the first choice for investors in the sector.

To meet this objective and provide information to fit the needs of all parties, ArcelorMittal implements an active and broad investor communications policy: conference calls, road shows with the financial community, regular participation at investor conferences, plant visits and meetings with individual investors.

ArcelorMittal’s senior management plans to meet investors and shareholder associations in road shows throughout 2023.

Depending on their geographical location, investors may use the following e-mails or contact numbers to reach the investor relations team:

The Investor Relations team is also a source of information for the growing sustainable responsible investment community. The team organizes special events on ArcelorMittal’s corporate responsibility strategy and answers all requests for information sent to the Group at investor.relations@arcelormittal.com or may be contacted at +44 7435 192 206.

The schedule is available on ArcelorMittal’s website www.arcelormittal.com under Investors, Financial calendar.

Contact the investor relations team according to the information detailed above or please visit www.arcelormittal.com/corp/investors/contact.

This annual report contains forward-looking statements based on estimates and assumptions. This annual report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among other things, statements concerning the business, future financial condition, results of operations and prospects of ArcelorMittal, including its subsidiaries. These statements usually contain the words “believes”, “plans”, “expects”, “anticipates”, “intends”, “estimates” or other similar expressions. For each of these statements, you should be aware that forward-looking statements involve known and unknown risks and uncertainties. Although it is believed that the expectations reflected in these forward-looking statements are reasonable, there is no assurance that the actual results or developments anticipated will be realized or, even if realized, that they will have the expected effects on the business, financial condition, results of operations or prospects of ArcelorMittal.

These forward-looking statements speak only as of the date on which the statements were made, and no obligation has been undertaken to publicly update or revise any forward-looking statements made in this annual report or elsewhere as a result of new information, future events or otherwise, except as required by securities and other applicable laws and regulations. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled “Risk factors”.

All information that is not historical in nature and disclosed under “Operating and financial review” is deemed to be a forward-looking statement.

This annual report includes industry data and projections about the Company’s markets obtained from industry surveys, market research, publicly available information and industry publications. Statements on ArcelorMittal’s competitive position contained in this annual report are based primarily on public sources including, but not limited to, published information from the Company's competitors. Industry publications generally state that the information they contain has been obtained from sources believed to be reliable but that the accuracy and completeness of such information is not guaranteed and that the projections they contain are based on a number of significant assumptions. The Company has not independently verified this data or determined the reasonableness of such assumptions. In addition, in many cases the Company has made statements in this annual report regarding its industry and its position in the industry based on internal surveys, industry forecasts and market research, as well as the Company’s experience. While these statements are believed to be reliable, they have not been independently verified.

This annual report contains the audited consolidated financial statements of ArcelorMittal and its consolidated subsidiaries, including the consolidated statements of financial position as of December 31, 2022 and 2021, and the consolidated statements of operations, other comprehensive income, changes in equity and cash flows for each of the years ended December 31, 2022, 2021 and 2020. ArcelorMittal’s consolidated financial statements were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

The financial information and certain other information presented in a number of tables in this annual report have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column. In addition, certain percentages presented in the tables in this annual report

reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based on the rounded numbers. This annual report includes net debt, operating working capital and free cash flow, which are non-GAAP financial measures. ArcelorMittal believes net debt, operating working capital and free cash flow to be relevant to enhance the understanding of its financial position and provides additional information to investors and management with respect to the Company’s operating cash flows, capital structure and credit assessment. In addition, it refers to “special” items in its capital return policy which will be used to determine if the base dividend will be paid. “Special” items relate to events or charges that the Company does not consider to be part of the normal income generating potential of the business. Items may qualify as “special” although they may have occurred in prior years or are likely to recur in following years. 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.

During 2022, ArcelorMittal completed several financing and liability management transactions. Please refer to the "Business overview—Liquidity and capital resources" and "Operating and financial review—Liquidity and capital resources—Financings" of this report for a summary of these transactions.

In addition, the Company announced or completed the following additional acquisitions:

As an integrated producer of steel and iron ore, ArcelorMittal’s results of operations are sensitive to the market prices of, and demand for, steel and iron ore in its markets and globally. The impact of market steel prices on its results is direct while the impact of market iron ore prices is both direct and indirect, as ArcelorMittal sells iron ore on the market to third parties (in which case it benefits from higher iron ore market prices), and

indirect, as iron ore is a principal raw material used in steel production and fluctuations in its market price are typically and eventually (with the timing dependent on steel market conditions) passed through to steel prices (with any lags in passing on higher prices “squeezing” steel margins, as discussed below). Steel and iron ore prices are affected by supply and demand trends and inventory cycles. In terms of demand, steel and iron ore prices are sensitive to trends in cyclical industries, such as the automotive, construction, appliance, machinery, equipment and transportation industries, which are significant markets for ArcelorMittal’s products (with automotive being particularly significant). More generally, steel and iron ore prices are sensitive to macroeconomic fluctuations in the global economy which are impacted by many factors

ranging from trade and geopolitical tensions to global and regional monetary policy to specific disruptive events such as pandemics and natural disasters. In the past, substantial price decreases during periods of economic weakness have not always been offset by commensurate price increases during periods of economic strength. In addition, as further discussed below, excess supply relative to demand for steel in local markets generally results in increased exports and drives down regional or global prices. In terms of inventory, steel stocking and destocking cycles affect apparent demand for steel and hence steel prices and steel producers’ profitability. For example, steel distributors may accumulate substantial steel inventories in periods of low prices and, in periods of rising real demand for steel from end-users, steel distributors may sell steel from inventory (destock), thereby delaying the effective implementation of steel price increases. Conversely, steel price decreases can sometimes develop their own momentum, as customers adopt a “wait and see” attitude and destock in the expectation of further price decreases.

As a result of these factors, steel and iron ore prices fluctuate substantially and have come under pressure at various points in recent periods. In 2019, steel market conditions deteriorated significantly due to a decline in steel prices (lower demand in Europe and the U.S., higher imports in Europe and additional domestic supply and the effect of customer destocking in the U.S.) and higher raw material costs (particularly in iron ore due to supply-side developments), resulting in a negative price-cost effect. This led to substantial inventory-related and impairment charges and hence sharply lower steel segment operating income in 2019. Steel market conditions were adversely affected in the first half of 2020 by the COVID-19 pandemic and its economic ramifications, with demand plummeting (e.g., an 18.4% year-on-year drop in EU apparent steel consumption (“ASC”) and a 34.7% drop in overall steel shipments in the second quarter versus the same quarter in the prior year) and prices falling substantially. After a strong rebound starting in the second half of 2020 and continuing into the third quarter of 2021, steel prices began to decline from very high levels in the fourth quarter of 2021, in varying degrees by market, in particular, due to softer end-market demand conditions (e.g., supply chain issues affecting automobile production and weakness in the Chinese real estate market, both major consumers of steel). Steel prices in 2022 were highly volatile, coming off their peak in the early stages of the first quarter then spiking in the latter part of the first quarter following the Russian invasion of Ukraine, and then falling since as fears of a global slowdown have emerged and customers have sought to destock, due in particular to uncertainties about the duration of the Russia-Ukraine conflict, its consequences on energy supply and, more generally, high inflation (including of energy prices), monetary tightening and continuing supply chain issues. Prices continued to decline in the second half of 2022 such that

ArcelorMittal recorded inventory-related charges of $0.5 billion in the third quarter of 2022, to reflect the net realizable value of inventory with declining market prices in Europe.

The trajectory of steel demand and prices going forward, in particular in the first half of 2023, is difficult to predict due to such variables as the duration of the ongoing conflict in Ukraine and its impact on global energy supply and hence on industrial production and consequentially demand for steel, the extent and duration of supply chain issues affecting end-markets (and in particular automobile production), the remaining course of the COVID-19 pandemic (including the risk of renewed containment measures affecting consumer demand and production facilities, in particular in China), import volumes and tariff levels and inventories. In addition, macroeconomic conditions are uncertain, including due to geopolitical developments, particularly Russia’s invasion of Ukraine and the international community’s reaction to it and actions taken by central banks to combat inflation (in particular raising interest rates sharply in 2022 and early 2023 and possible continued raises over the course of 2023), which may increase the risk of recession. Any economic downturn globally or in certain regions may result in lower steel demand and lower steel and iron ore prices. A scenario of prolonged low steel and (to a lesser extent or if simultaneous) iron ore prices, whether or not combined with low steel demand, would have a material adverse effect on ArcelorMittal’s results of operations and financial condition.

More specifically in terms of near to mid-term risks for the Company in this respect, the fall in international spot steel prices in the second half of 2022 stemmed from a broader trend in slowing steel demand. As inflation continues and central banks raise interest rates in an attempt to curb it, the risk of a global recession has grown. Significant energy supply and cost issues in Europe increase the risk of manufacturers being unable to operate at full capacity, potentially lowering demand for steel and straining steel prices. Many steel customers began to destock and adopt a “wait and see” approach in the summer of 2022, and steel conditions, particularly in Europe, were subject to a continuous deterioration. The fragility of the Chinese economy, which has suffered from repeated lockdowns (due to the Chinese government’s “zero-Covid” approach applied until early December 2022) and a weak real estate sector, also add to risks of a global slowdown and lower global steel demand and prices. Prior recessions have generally resulted in lower steel demand and steel prices, with consequential material adverse impacts on steel companies’ results. While ArcelorMittal now forecasts an improvement in ASC excluding China, it also forecasts a possible contraction or at most limited growth in ASC in China. See "Operating and financial review - Outlook". Any significant decline in steel prices also increases the risk of inventory-related charges, such as those that ArcelorMittal recorded in 2019 and 2022. In addition, the impact of lower steel

prices on ArcelorMittal’s results is subject to a lag effect (due to its contracts), and therefore the impact is felt beyond the duration of any decline in spot steel prices.

Although ArcelorMittal has substantial sources of iron ore from its own mines (the Company’s self- sufficiency rate was 61% for iron ore in 2022), it nevertheless remains exposed to volatility in the supply and price of iron ore and coking coal given that it obtains a significant portion of such raw materials under supply contracts from third parties. For additional details on ArcelorMittal’s raw materials supply and self-sufficiency, see “Business overview—Products—Mining products” and “Business overview—Products—Other raw materials and energy.” The prices of steel, iron ore, coking coal and scrap have been highly volatile in recent years and in 2022 in particular. Volatility in steel and raw material prices can result from many factors including: trends in demand for iron ore in the steel industry itself, and particularly from Chinese steel producers (as the largest group of producers); industry structural factors (including the oligopolistic nature of the seaborne iron ore industry and the fragmented nature of the steel industry); the expectation or imposition of corrective trade measures such as tariffs; massive stocking and destocking activities (sudden drops

Furthermore, while steel and raw material (in particular iron ore and coking coal) price trends have historically been correlated, a lack of correlation or an abnormal lag in the corollary relationship between raw material and steel prices may also occur and result in a “price-cost effect” in the steel industry. ArcelorMittal has experienced negative price-cost effects (or “squeezes”) at various points in recent years including in 2019, 2020, 2021 and in the second half of 2022 and will likely continue to do so as this is a structural feature. In some of ArcelorMittal’s segments, in particular Europe and NAFTA, there is a lag of several months between raw material purchases and sales of steel products incorporating those materials, rendering them particularly susceptible to price-cost effect. For example, coking coal sourced from Australia takes several weeks to reach Europe (e.g. approximately 4 weeks sailing time, plus loading/unloading time at ports), creating a structural lag. Sudden spikes in raw materials, such as coking coal, have occurred in the past and may occur in the future. Because ArcelorMittal sources a substantial portion of its raw materials through long-term contracts with quarterly (or more frequent) formula-based or negotiated price adjustments and as a steel producer sells a substantial part of its steel products at spot prices, it faces the risk of adverse differentials between its own production costs, which are affected by global raw materials and scrap prices, on the one hand, and trends for steel prices in regional markets, on the other hand. The price-cost dynamic in the most recent periods can be summarized as follows: in 2019, the significant decline in steel prices (due to lower demand and higher imports, among other things) and significant increase in iron ore prices among other trends due in part to supply shocks following the collapse of the Brumadinho dam owned by Vale in Brazil and a

heavy cyclone season in Australia weighed heavily on the profitability of the Company’s steel business. In 2020, the negative impact of the COVID-19 pandemic restrictions on steel demand led to lower spreads as steel prices declined, in particular in the second quarter of 2020. Prices remained low in the third quarter of 2020 (due in part to price lag), while raw material costs, especially iron ore, remained broadly stable, underpinned by the strong rebound in Chinese demand, resulting in a price-cost squeeze. In the fourth quarter of 2020, with the recovery of steel demand in the world (excluding China), there was a recovery in steel and iron ore prices, while prices for coking coal decreased and remained stable throughout the fourth quarter of 2020 due to the Chinese ban on Australian coals. The significant increase in steel prices in the fourth quarter of 2020 resulted in a multi-year high in steel spreads (which was not fully reflected in the Company’s performance due to lag effect). This trend continued through the third quarter of 2021 before prices came off their highest levels in the fourth quarter of 2021, while high raw material and energy costs put increasing pressure on margins. This trend then shifted in the second half of 2022, as energy costs continued to increase while steel prices declined. More generally and in sum, the relationship between input (and in particular raw material) costs and steel selling prices and the time lag between them structurally subjects the profitability of steel manufacturers in general and ArcelorMittal in particular to the risk of a negative price-cost effect.

ArcelorMittal’s other principal input costs that affect its level of profitability are energy and transportation. Energy expenses are sensitive to changes in electricity, energy transportation and fuel prices, including diesel fuel, natural gas and industrial gas. Prices for electricity, natural gas and fuel oils can fluctuate widely with availability and demand levels from other users, including fluctuations caused by the impact of the COVID-19 pandemic. During periods of peak usage, although some operations have contractual arrangements in place whereby they receive certain offsetting payments in exchange for electricity load reduction, supplies of energy in general may be curtailed and the Company may not be able to purchase them at historical rates. A disruption in the transmission of energy, inadequate energy transmission infrastructure, or the termination of any of the Group’s energy supply contracts could interrupt energy supply and adversely affect operations. While the Group has some long-term contracts with electrical, natural gas and industrial gas suppliers, it is exposed to fluctuations in energy, natural gas and industrial gas costs that can affect its production costs. Energy prices rose substantially in various markets in 2021 and 2022, with attendant impacts on margins and in extreme cases production at certain sites in Europe (e.g., the Company curtailed production at some of its Spanish plants during “peak hours” due to high electricity prices). Europe experienced an energy crisis in 2022, due to the consequences

of Russia’s invasion of Ukraine as well as other supply issues. While the Company generally hedges its energy costs on a six-month rolling basis, its results were impacted by the high energy prices. The energy crisis involved significant supply risk, with gas supplies through the Nord Stream pipeline having been reduced to 20% of maximum capacity as of July 26, 2022 and gas supplies being suspended periodically for other reasons, including “maintenance” and invoicing disputes and explosions in September 2022. Germany in particular continues to be under significant pressure, and in June 2022 it entered into the second stage of its emergency gas plan. In addition, while the demand situation appears to be improving and the Company is gradually restarting production at certain sites that have been subject to production cuts in Europe, significant cuts in energy supplies or a collapse in demand due to supply issues or otherwise may result in the Company having to cut production. Indirectly, if steel-using customers are unable to source the energy supplies needed for their operations, they will be unable to operate and their demand for steel will decline.

Transportation costs include shipping, road and rail. These costs, and in particular shipping, also rose substantially in 2021 due to the post-lockdown demand recovery and logistic constraints, but then declined again in 2022 as economies normalized. Any increase in or a sustained high level of transportation costs not offset by continued high steel selling prices would directly and mechanically weigh on ArcelorMittal’s profitability (although it would make imports into its markets less competitive). In light of reduced global steel production, the outlook on freight rates in the near future is to a large degree dependent on developments in China. If China cannot significantly raise infrastructure spending in the near future, economic recovery is likely to be stunted, further impacting iron ore demand, and by extension freight rates on key iron ore routes.

The steel industry is affected by global and regional production capacity and fluctuations in steel imports and exports, which are themselves affected by the existence and amounts of tariffs and customer and distributor stocking and destocking cycles. The steel industry has historically suffered from structural overcapacity globally, and the current global steelmaking capacity exceeds the current global consumption of steel, especially for long products. This overcapacity is affected by global macroeconomic trends and amplified during periods of global or regional economic weakness, leading to weaker global or regional demand. In particular, China is both the largest global steel consumer and the largest global steel producer by a large margin, and the balance between its domestic production

and consumption has been an important factor influencing global steel prices. At various points in recent years, reduced Chinese steel demand has not been fully offset by reduced Chinese steel production, which has led to a flood of Chinese steel exports into various regional markets, including the Company’s principal markets again weighing on demand, and indeed depressing market prices. While most recently constraints imposed on Chinese steel production have tempered the risk of excess production, such risk remains, along with the risk of increased exports, in particular if there is a global recession or a Chinese slowdown. Indeed, the slowdown in the real estate sector caused Chinese domestic demand to weaken and pushed up Chinese net exports from around 3.5 million tons per month from January to April 2022 to 6.5 million tons per month from May to July 2022, before falling back to 4.7 million tons per month for the rest of 2022 as demand globally weakened. Exports by steel producers in other developing countries and regions (such as the CIS, Turkey and India) into the Company’s principal markets are also a market feature. The extent of them depends on the demand/production balance in the producer’s home market as well as regional market pricing differentials (including any applicable import tariffs). The European steel market is particularly sensitive to the import threat due to remaining structural overcapacity. For example, lower demand and high imports led to low steel prices in Europe in the first half of 2019, to which steel producers (including the Company) responded with production cuts. The Company cut certain high cost capacity in the second half of 2022, with approximately 6.0 million tons of annualized production curtailments for the fourth quarter of 2022, representing a decline of approximately 20% compared to the fourth quarter of 2021 due in particular to high energy and carbon costs and lower steel prices, as apparent demand fell sharply since end users cut inventory levels and underlying real demand weakened.

Market prices for iron ore also underpin those of steel (as its principal input component) to some extent, and iron ore prices depend both on supply and demand conditions. Excess iron ore supply relative to demand has led to depressed prices at various points in recent years and could recur, with potentially a corollary effect on steel prices. No assurance can be given that iron ore prices will not decline further, particularly if there is a global recession, Chinese steel demand declines, worldwide capacity increases due to new mines coming online or steel demand declines again due, for example, to a resurgence of COVID-19 pandemic impacts or impacts from the Russia/Ukraine conflict, in particular on energy supply and prices. A renewed phase of steel and iron ore oversupply would likely have a material adverse effect on ArcelorMittal’s results of operations and financial condition.

ArcelorMittal is exposed to the effects of “dumping” and other unfair trade and pricing practices by competitors. Moreover, government subsidies to the steel industry remain widespread in certain countries, particularly those with centrally controlled economies such as China. In periods of lower global demand for steel, there is an increased risk of additional volumes of unfairly-traded steel exports into various markets, including Europe, North America and other markets such as Brazil and South Africa, in which ArcelorMittal produces and sells its products. Such imports have had and could in the future have the effect of reducing prices and demand for ArcelorMittal’s products.

Exports of low-cost steel products from developing countries, along with a lack of effective remedial trade policies, can depress steel prices in various markets globally, including in ArcelorMittal’s key markets. Conversely, ArcelorMittal is exposed to the effects of import tariffs, other trade barriers and protectionist policies more generally due to the global nature of its operations. Various countries have instituted, and may institute import tariffs and barriers that could, depending on the nature of the measures adopted, adversely affect ArcelorMittal’s business by limiting the Company’s access to or competitiveness in steel markets. While such protectionist measures can help the producers in the adopting country, they may be ineffective, raise the risk of exports being directed to markets where no such measures are in place or are less effective and/or result in retaliatory measures. Moreover, absent government intervention, European steel producers who will bear increasingly high costs to reduce carbon emissions (or pay for allowances) will be at a competitive disadvantage versus importers from developing countries with lower environmental standards. While certain changes in Chinese policy have recently led to decreased exports from China (notably the cancellation of the 13% export tax rebate on commodity grades of steel (HRC, rebar as of May 1, 2021)), the risk of increased exports from China remains, due to changes in Chinese policy, economic conditions or otherwise. For example, the sharp reduction in underlying real demand in China, coupled by a smaller reduction in steel production, led a push for exports, causing Chinese net steel exports to rise sharply in May and June 2022 to almost 7 million tons, up from an average of approximately 3.5 million tons during January to April 2022. A significant increase of Chinese exports, if continued, will likely lead to rising inventory levels in steel markets outside of China and downward pressure on prices and spreads, negatively affecting the Company’s profitability.

More generally, the current state of trade relations globally with trade disputes leading to the imposition of tariffs and then retaliatory measures, as seen in recent years in various markets

(U.S./China, U.S./Europe, etc.) has and could continue to directly (in the case of tariffs) or indirectly (in the case of economic growth generally) have a significant adverse effect on demand for and the price of steel and hence on ArcelorMittal’s results of operations and financial condition.

The Company has significant operations in Ukraine, consisting of a steel plant, which produced 1.2 million tonnes of steel in 2022 compared to 4.9 million tonnes in 2021, and (captive) mines that produced 4.9 million tonnes of iron ore in 2022 compared to 11.7 million tonnes of iron ore in 2021; the related property, plant and equipment had a carrying value of $0.6 billion on the Company’s balance sheet at December 31, 2022. In 2022, the Company’s Ukrainian operations (and in particular its Kryvyi Rih steel plant) recorded 1.1 million of steel shipments, compared to 4.6 million in 2021, generating $0.4 billion of sales compared to $4.1 billion of sales in 2021. In the wake of Russia’s invasion of Ukraine in late February 2022, the Company reduced steel production to minimum levels (approximately one-third of its normal production levels) and discontinued mining operations at its underground mines. Blast furnace No.6 (approximately 20% of Kryvyi Rih capacity) restarted on April 11, 2022 (to resume low levels of pig iron production). Iron ore production was approximately at 55% of capacity during the first half of 2022. but was then temporarily suspended in the third quarter of 2022 due to weak demand and logistics constraints and is currently at approximately 25% capacity. The Company cannot predict the duration of the idling or of lower production as it will depend on the remaining course of the conflict and the establishment of safe and stable operating and logistical conditions thereafter, as well as potential repairs of any damages sustained. While the Russian army has not seized the city of Kryvyi Rih, it could still seek to do so and it continues to use rockets that may affect the Company’s operations. Although key production assets have not been seriously damaged as of the date of this annual report, the building of the rolling shop #2 finished goods warehouse was partially destroyed as a result of a missile strike at the plant premises on December 5, 2022. The Russian army has also blocked ports in Odessa, complicating and increasing the cost of exports (including steel and iron ore) from Ukraine. The ongoing conflict, its impact on demand, logistics (with respect to both supply and delivery) and costs and any resulting further reduced production, sales and income at its Ukrainian operations caused the Company to record a $1.0 billion impairment charge with respect to such operations. For further information on these

risks, see notes 1.2 and 5.3 to the consolidated financial statements.

The imposition of extensive sanctions on Russia by the EU, the U.S., the UK and other countries affects the Company’s sourcing of raw materials and also, potentially, the markets for sales by the Group’s other operations in the CIS (the Group recorded $1.6 billion of sales to customers located in Russia in 2021 and $1.0 billion in 2022). The Company’s Kazakh operations stopped selling to customers located in Russia in March 2022 following Russia’s invasion of Ukraine. Overall, the impact on the Company’s CIS operations was significant in the second quarter of 2022, with significantly lower production, shipments and sales in the second quarter of 2022 compared to the first quarter of 2022. The Company's Kazakh operations resumed sales and shipments to customers located in Russia in June 2022. If such sales were to become prohibited by sanctions or impossible or impracticable due to the ongoing conflict, the Company’s results of operations would be impacted. More generally, business in Russia and with Russian counterparties carries the risk of non-compliance with economic sanctions (and the attendant financial and reputational adverse consequences), despite best efforts to comply.

More generally the conflict could have a further material adverse effect on the overall macroeconomic environment. The impact on energy supplies in Europe in particular has been significant and increases the risk of a recession in Europe. Both the conflict itself and the sanctions imposed (and further sanctions that may be imposed), as well as potential Russian reactions, have had and could have further destabilizing effects on financial markets. The conflict, which has substantially exacerbated tensions between NATO and Russia, could escalate militarily both regionally and globally; any substantial escalation would have a material adverse effect on macroeconomic conditions. In addition, sanctions may remain in place beyond the duration of any military conflict and have a long-lasting impact on the region and globally, and could adversely impact the Group’s results of operations and financial condition.

The markets in which steel companies operate are highly competitive. Competition, in the form of established producers expanding in new markets, smaller producers increasing production in anticipation of demand increases or amid recoveries, or exporters selling excess capacity from markets such as China, could cause ArcelorMittal to lose market share, increase expenditures or reduce pricing. For example, in the CIS, if low-cost regional competitors with 100% self-sufficiency in raw materials, increase steel rolling capacity, ArcelorMittal’s

market share may be affected, and downward pressure applied to globally traded steel prices. Any of these developments could have a material adverse effect on its business, financial condition, results of operations or prospects.

In many applications, steel competes with other materials that may be used as substitutes, such as aluminum, concrete, composites, glass, plastic and wood. In particular, as a result of increasingly stringent regulatory requirements, as well as developments in alternative materials, designers, engineers and industrial manufacturers, especially those in the automotive industry have increased their use of lighter weight and alternative materials, such as aluminum and plastics in their products.

In the automotive area, ArcelorMittal has introduced new advanced high-strength steel products, such as Usibor® 2000, Ductibor® 1000 and Fortiform® which is a new range of third generation advanced high strength steel for cold stamping, new engineering S-in motion® projects and a dedicated electric iCARe® range to respond to the shift toward electric cars. New martensitic products also offer a major potential for battery packs and the Multi Part Integration concept brings the possibility to drastically reduce the number of parts in a car. In the construction area, ArcelorMittal is deploying Steligence®, a unique holistic commercial approach with a complete set of products, services and solutions. See “Business overview—Research and development.” Despite these product innovations, a loss of market share to substitute materials, increased government regulatory initiatives favoring the use of alternative materials, as well as the development of additional new substitutes for steel products could significantly reduce market prices and demand for steel products and thereby reduce ArcelorMittal’s cash flows and profitability.

The steel industry has historically been cyclical, periodically experiencing difficult operating conditions. In light of this, ArcelorMittal has historically and increasingly in recent periods, taken initiatives to reduce its costs and increase its operating efficiency including through various asset optimization and other programs. In 2022, the Company announced a new 3-year $1.5 billion value plan focused on creating value through commercial initiatives, including volume/mix improvements and operational improvements (primarily in variable costs). Several actions were taken in 2022 which yielded improvement of $0.4 billion (approximately one quarter of the plan). These initiatives have been key to the Company’s ability to control and reduce costs, in particularly difficult market conditions, hence supporting profitability. Any inability to continue to roll-out such initiatives and to implement them fully could have a material adverse effect on the Company’s profitability and cash flows.

To achieve its 2030 global carbon emissions intensity reduction target of 25% covering the Scope 1 and 2 emissions attributable to the Company’s operations measured in accordance with the Greenhouse Gas (“GHG”) Protocol, ArcelorMittal has estimated the gross capital cost required to be approximately $10 billion, with the expectation that 35% of these capital expenditures will be deployed up to 2025 and the remainder in the second part of the decade. In addition, the Company’s decarbonization strategy includes the objective of carbon neutrality by 2050; since 2021, this has also been a legal obligation for its operations in the EU and Canada following the endorsement of Regulation (EU) 2021/1119 of the European Parliament and of the Council of June 30, 2021 (the “European Climate Law”) and the Canadian Net-Zero Emissions Accountability Act, respectively. These targets and estimates are based on numerous assumptions, including the costs of green hydrogen (meaning hydrogen produced exclusively from renewable sources) and its evolution over time, the construction of DRI and EAF facilities, the development of carbon capture, utilization and storage (“CCUS”)

ArcelorMittal’s decisions about which facilities to operate and at which levels are made based upon customers’ orders for products as well as the capabilities and cost performance of the Company’s facilities.

Considering temporary or structural overcapacity or other considerations, production operations are concentrated at several plant locations and certain facilities are idled in response

to customer demand, although operating costs are still incurred at such idled facilities. Most recently ArcelorMittal idled several plants during the COVID-19 pandemic-related lockdowns and its Ukrainian steel plant following the Russian invasion (and is currently operating only one of three blast furnaces in Ukraine). Four out of six coke batteries have been hot idled. While steps have been taken to protect these assets, idling can impact their long term health. In addition, ArcelorMittal idled certain sites in France, Germany, Spain and Poland in the fourth quarter of 2022, due to weaker macroeconomic conditions and order book, high energy and carbon costs and rising imports. The risk of the Company needing to idle facilities due to the ongoing conflict, energy costs and supply issues, logistics issues and any significant changes in steel demand due to the conflict, recession or otherwise, remains high. When idled facilities are restarted, ArcelorMittal incurs costs to replenish raw material inventories, prepare the previously idled facilities for operation, perform the required repair and maintenance activities and prepare employees to return to work safely and resume production responsibilities. Such costs could have an adverse effect on its results of operations or financial condition.

A majority of the employees of ArcelorMittal and of its contractors are represented by labor unions and are covered by collective bargaining or similar agreements, which are subject to periodic renegotiation. Strikes or work stoppages could occur prior to, or during, negotiations preceding new collective bargaining agreements, during wage and benefits negotiations or during other periods for other reasons, in particular in connection with any announced intentions to adapt the footprint. ArcelorMittal may experience strikes and work stoppages at various facilities. Prolonged strikes or work stoppages could have an adverse effect on the operations and financial results of ArcelorMittal. In recent years ArcelorMittal has experienced significant strikes affecting operations at various plants, particularly in Mexico, South Africa, France, Spain and Canada, relating to various causes, often in connection with labor contract renewal negotiations or claims for salary increases because of rising inflation.

Steel manufacturing processes are dependent on critical steel-making equipment, such as furnaces, continuous casters, rolling mills and electrical equipment (such as transformers), and such equipment may incur downtime as a result of unanticipated failures or other events, such as fires, explosions, furnace breakdowns or as a result of natural disasters, accidents, epidemics or pandemics or severe weather conditions. ArcelorMittal’s manufacturing plants and mines have experienced, and may in the future experience, plant shutdowns or periods of reduced production as a result of such events, for example the collapse of the oxygen and nitrogen pipelines in November 2018 at ArcelorMittal Temirtau, the fire in a conveyor belt of the coke plant in ArcelorMittal Asturias in October 2018, an electrical failure resulting in the temporary stoppage of the concentrator at AMMC in 2019, a fire in the gas cleaning section of the coke plant in Dunkirk in 2020, a blast furnace gas line explosion in Vanderbiljpark in 2020 in South Africa, an explosion in the Abayskaya mine in Kazakhstan in November 2021, a roof collapse at Temirtau in June 2022 and an explosion in the Lenina coal mine in Kazakhstan in November 2022. Certain of these incidents have resulted or may result in fatalities, production stoppages, governmental investigations or proceedings and/or in costs and liabilities and negatively impact the Company’s reputation or the operations of the affected facilities. Such incidents could also lead to loss of key personnel, loss of key assets, or put at risk our employees (and those of sub-contractors and suppliers) or persons living near affected sites. See “—ArcelorMittal is subject to strict environmental, health and safety laws and regulations that could give rise to a significant increase in costs and liabilities.” Conflicts may also cause interruptions to operations; see “—Russia’s invasion of Ukraine, international reaction to it (in particular in the form of sanctions) and any regional or global escalation of the conflict, could adversely affect the Company’s business, results of operations and financial condition.”

In addition, natural disasters and severe weather conditions could lead to significant damage at ArcelorMittal’s production facilities and general infrastructure or cause shutdowns. For example, ArcelorMittal Mexico’s production facilities located in Lázaro Cárdenas, Michoacán, Mexico are located in or close to areas prone to earthquakes. The Lázaro Cárdenas area has, in addition, been subject to a number of tsunamis in the past. The site of the joint venture AM/NS Calvert (“Calvert”) in the United States is located in an area subject to tornados and hurricanes. ArcelorMittal also has assets in locations subject to bush fires, specifically in Kazakhstan and South Africa, and to Arctic freeze, specifically in Baffinland. More generally, changing weather patterns and climatic conditions in recent years, possibly due to

climate change, have added to the unpredictability and frequency of natural disasters.

Severe weather conditions can also affect ArcelorMittal’s operations in particular due to the long supply chain for certain of its operations and the location of certain operations in areas subject to harsh winter conditions (i.e., Canada and Kazakhstan) or areas that are susceptible to droughts (i.e., South Africa, Mexico and Brazil). Water in particular is crucial to the steelmaking process, and the risk that the authorities may restrict license to withdraw water as a result of chronic drought could increase operating costs and reduce production capacity. Flooding has also affected ArcelorMittal’s operations, including at ArcelorMittal Asturias in Aviles, Spain in June 2018, ArcelorMittal Canada in Mont Wright, Canada in September 2022, and, more regularly, in Liberia, when heavy rains during the wet season have caused handling and logistic constraints that impacted shipment volumes. The severe floods in Europe in July 2021 also resulted in logistic constraints and decreased steel shipments. Damage to ArcelorMittal production facilities due to natural disasters and severe weather conditions could, to the extent that lost production cannot be compensated for by unaffected facilities, adversely affect its business, results of operations or financial condition. More generally, these severe weather conditions could increase in frequency and severity due to climate change.

The occurrence of an event that is uninsurable or not fully insured could have a material adverse effect on ArcelorMittal’s business, financial condition, results of operations or prospects. ArcelorMittal maintains insurance on property and equipment in amounts believed to be consistent with industry practices, but it is not fully insured against all such risks. ArcelorMittal’s insurance policies cover physical loss or damage to its property and equipment on a reinstatement basis as arising from a number of specified risks and certain consequential losses, including business interruption arising from the occurrence of an insured event under the policies. Under ArcelorMittal’s property and equipment policies, some damages and losses caused by among others terrorism, war and other political violent events, as well as by certain natural disasters, such as earthquakes, floods and windstorms, are also covered.

ArcelorMittal also purchases worldwide third-party public and product liability insurance coverage for all of its subsidiaries. Various other types of insurance are also maintained, such as comprehensive construction and contractor insurance for its greenfield and major capital expenditures projects, directors and officers liability, transport, and charterers’ liability, as well as

other customary policies such as car insurance, travel assistance and medical insurance.

In addition, ArcelorMittal maintains trade credit insurance on receivables from selected customers, subject to limits that it believes are consistent with those in the industry, in order to protect it against the risk of non-payment due to customers’ insolvency or other causes. Not all of ArcelorMittal’s customers are or can be insured, and even when insurance is available, it may not fully cover the exposure.

Notwithstanding the insurance coverage that ArcelorMittal and its subsidiaries carry, the occurrence of an event or series of events (such as, among others, a pandemic or a war) that may result in losses in excess of limits specified under the relevant policy, or losses not covered by insurance policies, could materially harm ArcelorMittal’s financial condition and future operating results.

ArcelorMittal’s operations depend on the secure and reliable performance of its information technology systems. An increasing number of companies, including ArcelorMittal, have experienced intrusion attempts or even breaches of their information technology security, some of which have involved sophisticated and highly targeted attacks on their computer networks. Phishing, ransomware and virus attacks have been increasing in more recent years through 2020, with WannaCry impacting the Company in March 2018 and ransomware Eight in South Africa in 2020. In March 2021, ArcelorMittal Liberia and Dofasco were subject to a Cobalt Strike BEACON malware attack. The attack initially occurred on the ArcelorMittal Liberia network, with a malicious file download leading to an infection by malware. The attacker then moved laterally within the ArcelorMittal Liberia network to the ArcelorMittal Dofasco environment, attempting to infect the ArcelorMittal Dofasco system. In April 2021, ArcelorMittal Dofasco engaged an outside firm to conduct an exhaustive review of the attack, and no evidence data access, staging or theft was found. In April 2022, one of ArcelorMittal Brasil’s business partners was the subject of a malware attack in which the attackers moved laterally in an attempt to gain access to shared accounts between the partner and ArcelorMittal Brasil. The attackers then also attempted to use this initial attack to access some of the Company’s North American sites. A forensic analysis of the incident by an outside firm found no evidence that data or accounts related to ArcelorMittal Brasil or any of the Company’s North America sites had been compromised.

Adverse consequences of technological advances like Industry 4.0, Cloud Computing, Internet of Things, and Blockchain may

increase threats or cause damage to ArcelorMittal, for example by impacting shop-floor systems supporting production and maintenance and thereby forcing plant operations to revert to manual mode with loss of production, resulting in new risks to ArcelorMittal’s operations and systems. Because the techniques used to obtain unauthorized access, disable or degrade service or sabotage systems change frequently and often are not recognized until launched against a target, the Company may be unable to anticipate these techniques or to implement in a timely manner effective and efficient countermeasures. Although ArcelorMittal performs annual cyber maturity assessments in many of its business units, which are supplemented by in-depth cyber audits and penetration testing exercises performed by ArcelorMittal Global Assurance, the risk of significant data breaches, data theft, unauthorized access or successful hacking cannot be eliminated. There may also be an increased risk of cybersecurity breaches due to ongoing geopolitical tensions involving Russia.

If unauthorized parties attempt or manage to bring down the Company’s website or force access into its information technology systems, they may be able to misappropriate personal and confidential information, cause interruptions in the Company’s operations, damage its computers or process control systems or otherwise damage its reputation and business. In such circumstances, the Company could be held liable or be subject to regulatory or other actions for breaching confidentiality and personal data protection rules including the EU’s General Data Protection Regulation (“GDPR”). Any compromise of the security of the Company’s information technology systems could result in a loss of confidence in the Company’s security measures and subject it to litigation, civil or criminal penalties, and adverse publicity that could adversely affect its reputation, financial condition and results of operations.

ArcelorMittal’s mining operations are subject to the hazards and risks usually associated with the exploration, development and production of natural resources, any of which could result in production shortfalls or damage to persons or property. In particular, the hazards associated with open-pit mining operations include, among others:

• flooding of the open-pit;

• collapse of the open-pit wall;

• accidents associated with the operation of large open-pit mining and rock transportation equipment;

• accidents associated with the preparation and ignition of large-scale open-pit blasting operations;

• hazards associated with the disposal of mineralized waste water, such as groundwater and waterway contamination; and

• collapse of tailings ponds dams.

Hazards associated with underground mining operations, of which ArcelorMittal has several, include, among others:

• underground fires and explosions, including those caused by flammable gas;

• gas and coal outbursts;

• cave-ins or falls of ground;

• discharges of gases and toxic chemicals;

• flooding;

• sinkhole formation and ground subsidence; and

• blasting, removing, and processing material from an underground mine.

ArcelorMittal is exposed to all of these hazards. The occurrence of any of the events listed above could delay production, increase production costs and result in death or injury to persons, damage to property and liability for ArcelorMittal, some or all of which may not be covered by insurance, as well as substantially harm ArcelorMittal’s reputation, both as a Company focused on ensuring the health and safety of its employees and more generally.

There is a degree of uncertainty attributable to the estimation of mineral reserves and resources. Until mineral reserves and resources are actually mined and processed, the quantity of metal and grades must be considered as estimates only and no assurance can be given that the indicated levels of metals will be produced. In making determinations about whether to advance any of its projects to development, ArcelorMittal must rely upon estimated calculations for the mineral reserves and

mineral resources and grades of mineralization on the Company’s properties.

The estimation of mineral reserves and resources is a subjective process that is partially dependent upon the judgment of the qualified persons preparing such estimates. The process relies on the quantity and quality of available data and is based on knowledge, mining experience, statistical analysis of drilling and sampling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available.

ArcelorMittal’s estimates of mineral reserves and resources are based on interpretation of geological data and statistical inferences or assumptions drawn from the results of drilling and sampling analysis made as of the date of such estimates.

ArcelorMittal periodically updates its mineral reserve and resources estimates based on the conclusions of the relevant qualified persons with respect to new data generated from exploratory and infill drilling campaigns, results from technical studies and the experience acquired during the operation of the mine and metallurgical processing, as well as changes to the assumptions used to calculate these estimates. Additional data generated may not be consistent with the data on which previous mineral resources and mineral reserves were based. Therefore, estimates may change from period to period or may need to be revised, and there can be no assurance that the mineral resources or mineral reserves in this report will be recovered at the grade, quality or quantities presented.

There can be uncertainty in the assumptions used that may materially impact and result in significant changes to the Company’s current estimates. The assumptions that can fluctuate may include, but are not limited to: market prices including long-term forecasts; operating and capital costs; changes to estimation input parameters and techniques; and changes to cut-off grades, mining, and metallurgical recovery rates. These changes may also render some or all of our current proven and probable mineral reserves and measured and indicated mineral resources uneconomic to exploit and may ultimately result in a reduction of mineral reserves and resources. Additionally, estimated future cash flows, capital expenditure and operating costs, production schedules, mine closure costs, royalty and tax costs estimates, and valuation assumptions based on mineral reserve and mineral resource estimates may not necessarily be indicative of future results.

Pursuant to the S-K 1300 regulations the term “mineral resources” does not indicate recoverable mineral reserves. Future mining of estimated mineral resources is considered uncertain as they do not meet the threshold for mineral reserve modifying factors. Mineral resources are subject to further exploration and evaluation of material factors such as operating

costs, grades, and recoveries, further engineering, legal and economic feasibility that would allow for the conversion to mineral reserves. Consequently, no assurance can be given that mineral resources not included in mineral reserves will become recoverable proven and probable mineral reserves in the future.

In addition, inferred mineral resources have a great amount of uncertainty as to their existence and their economic and legal feasibility. Readers should not assume that any part of an inferred mineral resource will be upgraded to a higher category or that any of the mineral resources not already classified as mineral reserves will be reclassified as mineral reserves.

Moreover, substantial time and expenditures are required to:

If a project proves not to be economically feasible by the time ArcelorMittal is able to exploit it, ArcelorMittal may incur substantial losses and be obliged to recognize impairments. In addition, potential changes or complications involving metallurgical and other technological processes that arise during the life of a project may result in delays and cost overruns that may render the project not economically feasible.

Reserves are gradually depleted in the ordinary course of a given mining operation. As mining progresses, distances to the primary crusher and to waste deposits become longer, pits become steeper and underground operations become deeper, all of which are considered in reserve estimates. As a result, ArcelorMittal usually experiences rising unit extraction costs over time with respect to each of its mines.

The Company was formed and subsequently grew through mergers and acquisitions. After curtailing its large-scale M&A activity for several years following the 2008 financial crisis, the Company made several large acquisitions in recent years, including its acquisition (via a joint venture) of Calvert in 2014, of the long steel business ArcelorMittal Sul Fluminense (“AMSF”) in 2018, ArcelorMittal Italia via a long-term lease and conditional purchase agreement in 2018 (renamed Acciaierie d’Italia and which became a joint venture in 2021) and AMNS India Limited (“AMNS India”) via a joint venture in 2019, the acquisition of a majority stake in voestalpine’s HBI facility in Texas in 2022 and the acquisition of Companhia Siderúrgica do Pecém ("CSP") in Brazil in 2022, which is expected to close during the first quarter of 2023.

To the extent ArcelorMittal continues to pursue significant acquisitions, financing of such acquisitions may (depending on the structure) result in increased debt, leverage and gearing. Acquisitions also entail increased operating costs, as well as greater allocation of management resources away from daily operations. Managing acquisitions requires the continued development of ArcelorMittal’s financial and management information control systems, the integration of acquired assets with existing operations, the adoption of manufacturing best practices, handling any labor disruptions that may arise, attracting and retaining qualified management and personnel as well as the continued training and supervision of such personnel, and the ability to manage the risks and liabilities associated with the acquired businesses. Acquisitions may also result in subsequent disputes or financial liabilities, including in respect of put options granted to selling shareholders over a retained minority stake. For example, Votorantim S.A. is contesting the exercise price of the put option it has over its stake in ArcelorMittal Brasil, representing substantial financial exposure for the Company. The Company also recognized a financial liability at amortized cost related to the put option granted to voestalpine in connection with the acquisition of the Corpus Christi, Texas HBI facility (as well as with respect to a put option granted to non-controlling interests in Sonasid), as described in notes 2.2.4, 9.3 and 11.5.2 to the consolidated financial statements. In addition, acquisitions may entail future capital expenditures, either as a condition (e.g., the Essar bankruptcy resolution plan referenced below) or in order to realize synergies, operational efficiencies or strategic benefits (e.g., the plans to expand capacity at CSP and form an adjacent clean electricity and green hub). Such capital expenditure may

not provide the anticipated return on investment. More generally, failure to manage acquisitions could have a material adverse effect on ArcelorMittal’s business, financial condition, results of operations or prospects.

The Company has encountered and may continue to encounter difficulties with respect to ADI. In particular, pursuant to the initial agreement for the lease and subsequent conditional purchase of the business of Ilva (the "Ilva Agreement"), ADI implemented major improvements involving substantial capital expenditures designed to bring ADI up to and beyond EU environmental standards, to improve its operational performance, to rebuild client confidence and to integrate personnel and apply the Company’s best practices and expertise. The implementation of these improvements was subject to various obstacles, including the unexpected legal, regulatory and operational developments encountered in 2019 and the impact of the COVID-19 pandemic in Italy, which led to a significant reduction in the Taranto plant’s production for several months in 2020. These delays were particularly costly as ADI had been loss-making while it was consolidated in ArcelorMittal’s results from November 2018 to December 2020.

On November 4, 2019, ArcelorMittal sent to the Commissioners managing the Ilva insolvency procedure (the “Commissioners”) a notice to withdraw from or terminate the Ilva Agreement and return the business units to Ilva. This notice was based, among other things, on provisions of the agreement that allow withdrawal in the event that a new law affects the environmental plan for the Taranto plant in such a way that materially impairs the ability to operate the plant or implement the industrial plan; these provisions were triggered following the Italian Parliament’s removal, on November 3, 2019, of the legal protection necessary for ADI to implement its environmental plan without risk of criminal liability. In response, the Commissioners filed suit in Milan seeking an injunction to prevent ArcelorMittal’s withdrawal and termination of the agreement. Following negotiation between the parties, on March 4, 2020, ADI and the Commissioners agreed to settle this litigation and signed an amendment to the Ilva Agreement.

The amendment included terms for investment by Italian state-sponsored and other private entities into ADI, a new industrial plan involving lower-carbon steelmaking technologies, a revised lease payment structure and certain revised commitments and additional conditions precedent related to the completion of the obligation to purchase (including the amendment of the existing environmental plan to account for changes in the new industrial plan; the lifting of all criminal seizures on the Taranto plant; and the absence of restrictive measures affecting ADI in the context of criminal proceedings where Ilva is a defendant) by May 2022. On that basis, on December 10, 2020, an investment agreement

was signed between ArcelorMittal and Invitalia, an Italian state-owned company (the "Investment Agreement"), providing for Invitalia to invest up to €1.1 billion in ADI, in two tranches (equity and €25 million as a loan). On April 14, 2021, following the initial injection by Invitalia of €400 million of new equity, ArcelorMittal and Invitalia formed a public-private partnership. The joint company was renamed Acciaierie d’Italia Holding (“ADI Holding” formerly AM InvestCo), and its main operating subsidiary ADI (then ArcelorMittal Italia) was renamed Acciaierie d’Italia. The Investment Agreement stipulated a second equity injection by Invitalia of up to €680 million, to fund the completion of the purchase of Ilva’s business by ADI Holding, subject to certain conditions precedent to be met initially by May 2022. Certain of these conditions precedent (in particular due to the existence of various judicial measures encumbering the Taranto plant) were not fulfilled by May 31, 2022. Accordingly, on May 31, 2022 the parties entered into amendments to the Ilva Agreement and the Investment Agreement. More specifically, ADI Holding and Ilva signed an amendment to the Ilva Agreement to, among other changes, extend the longstop date for the fulfillment of the conditions precedent (and, therefore, the term of the lease of the Ilva business) by two years (i.e., until May 31, 2024). In parallel, ArcelorMittal and Invitalia signed an amendment to the Investment Agreement (i) to extend the latest date for the second equity injection to May 31, 2024 (to coincide with the latest date for the fulfillment of the conditions precedent for the purchase of the Ilva business assets) and (ii) to reflect certain other circumstances.

At the end of December 2022, in order to address the financial consequences on the Acciaierie d’Italia group of the unprecedented spike in energy costs caused by the Ukraine crisis, ArcelorMittal, the Italian Government and Invitalia agreed, among other things, to accelerate the funding originally envisaged to occur in connection with the acquisition of Ilva’s assets, consisting in particular of €680 million from Invitalia and €70 million from ArcelorMittal (corresponding to an equivalent amount of receivables towards the Acciaierie d’Italia Group), in the form of a convertible shareholder loan made available on February 14, 2023, as a result of which, upon conversion, Invitalia’s stake in ADI Holding will be increased to 60% and ArcelorMittal’s will reduce to 40%. The settlement of Invitalia’s shareholder loan was completed on February 17, 2023. The latest amendment to the Investment Agreement also introduced a partial modification to ADI Holding’s governance effective as of the end of the term of the current board of directors (set to expire with the approval of the 2023 financial statements), when Invitalia will become entitled to appoint the CEO (subject to ArcelorMittal’s approval) and ArcelorMittal to appoint the chairman (subject to Invitalia’s approval) and each party will continue to appoint two more board members. Also, as from the conversion of the shareholder loans into capital, Invitalia will have the right to transfer to any third party an interest of no

more than 20% of the share capital of ADI Holding, subject however to ArcelorMittal’s right of first refusal.

The Investment Agreement also includes an updated industrial plan (revised in connection with the May 2022 amendment) envisaging through 2026 investment in lower-carbon steelmaking technologies, including the construction of a 2.5 million tonne EAF, which is expected to open in mid-2024, and the relining of blast furnace #5, which is expected to start production in 2024. This industrial plan targets reaching 8 million tonnes of production in 2025 (crude steel production is limited to 6 million tonnes until the environmental plan is completed). It integrates a series of public support measures including ongoing government funded employment support and includes, for the period between 2021 and 2025, environmental capital expenditures of €117 million and industrial capital expenditures of €957 million as well as capital expenditures of €226 million for the revamp of blast furnace #5 and €260 million for the construction of the EAF.

While the funds instrumental to the second equity injection have now been disbursed, no assurance can be given that the purchase of Ilva's assets will be completed by May 2024 (in case conditions precedent are not met or waived or the May 2024 deadline extended, ADI Holding would not be required to complete the purchase of Ilva’s assets and a portion of its capital invested would be returned to its shareholders) or that further operational, financial, legal, regulatory, labor-related or political difficulties will not arise, potentially resulting in the failure to achieve the anticipated benefits of the project, further losses, renewed litigation and payments of substantial amounts or other damages.

ArcelorMittal acquired, via a joint venture with Nippon Steel Corporation (“NSC”), AMNS India on December 16, 2019, in a bankruptcy resolution process. The joint venture’s proposal, set out in a resolution plan (the “Resolution Plan”) that detailed among other things the amount to be paid to existing creditors and towards capital infusion (totaling $7.1 billion and including $417 million of guaranteed working capital adjustment) and the improvements and related capital expenditures (totaling $2.6 billion) to be made over the medium-term, was approved by the Indian Supreme Court on November 15, 2019.

The implementation of the Resolution Plan and more generally ArcelorMittal’s shareholding in AMNS India subjects ArcelorMittal to various risks. On the operational front, the industrial project to turnaround AMNS India, expand its operations and further improve operational profitability is large-scale and ambitious. While ArcelorMittal has substantial experience in turnaround situations, the scale of this one is

particularly large and it is the Company’s inaugural large-scale acquisition in India, an emerging market. Moreover, AMNS India’s acquired assets did not include certain assets that are ancillary to the steel plant. AMNS India has since made additional acquisitions in this respect, such as of Odisha Slurry Pipeline Infrastructure Limited and a power plant. On October 19 and November 15, 2022, AMNS India concluded a transaction to acquire certain port, power and other logistics and infrastructure assets in India from the Essar Group for a net value of approximately $2.4 billion. In March 2021, AMNS India signed a Memorandum of Understanding ("MoU") with the Government of Odisha in view of building an integrated steel plant with a 12 million tonne capacity per annum in Kendrapara district of state Odisha. A pre-feasibility study report was submitted to the state government in the third quarter of 2021, and AMNS India is currently engaging with the government for further studies and clearances. Further options to build a 6 million tonne per annum integrated steel plant are being assessed. In addition it acquired Uttam Galva in a bankruptcy proceeding. The joint venture has financed such acquisitions with its own cash and drawings under existing financings (including the one referenced below, guaranteed by its shareholders). The Company currently expects that any future acquisitions would likely be similarly financed. Moreover, the joint venture has announced $7.4 billion in projected capital expenditure requirements that it expects to finance similarly (subject to potential cost overruns). The risks in this respect are compounded to an extent by the fact that AMNS India was emerging from bankruptcy (meaning, among other things, that maintenance capital expenditures were deferred) and is owned and operated by a joint venture with attendant risks around strategic alignment, potential discord and deadlock. ArcelorMittal is exposed to the extent of its equity investment and its guarantees of the financings of the joint venture, the latter of which may increase in amount as noted above. On March 16, 2020, AMNS Luxembourg, the parent company of the joint venture AMNS India, entered into a $5.1 billion ten-year term loan agreement with several Japanese banks which is guaranteed by ArcelorMittal and NSC in proportion to their interests in the joint venture. See further information in note 2.4 to the consolidated financial statements.

The Company has announced a number of greenfield or brownfield development projects as well as other significant investment projects which are capital intensive. See “Properties and capital expenditures—Property, plant and equipment—Investments in joint ventures” and “Properties and capital expenditures—Capital expenditures” for further information on projects the Company has announced. Particularly significant

recent projects include the Company’s announced projects in Mexico, Liberia, India, France and Brazil involving estimated capital expenditures of approximately $4.2 billion over the 2021 to 2025 period. With respect to India, in March 2022, the Company also established a strategic partnership with Greenko Group, an Indian energy transition company, to develop a ‘round the clock’ renewable energy project with 975 MW of nominal capacity, involving investments of approximately $600 million and combining solar and wind power. In addition, ArcelorMittal’s joint venture AMNS India has significant capital expenditure projects (amounting to $7.4 billion according to estimates announced on September 27, 2022) and has signed a memorandum of understanding with the Government of Odisha in view of building an integrated steel plant with an 12Mtpa capacity in Kebdrapara district of state of Odisha; and other joint ventures have significant ongoing investment projects.

To the extent these projects go forward, they would entail substantial capital expenditures, and their timely completion and successful operation may be affected by factors beyond the control of ArcelorMittal. These factors include receiving financing on reasonable terms, obtaining or renewing required regulatory approvals and licenses, securing and maintaining adequate property rights to land and mineral resources, local opposition to land acquisition or project development, managing relationships with or obtaining consents from other shareholders, revision of economic viability projections, demand for the Company’s products, local environmental or health-related conditions, and general economic conditions. Any of these factors may cause the Company to delay, modify or forego some or all aspects of its development projects. For investment projects that the Company expects to fund primarily through internal sources, these sources may prove insufficient depending on the amount of internally generated cash flows and other uses of cash, and the Company may need to choose between incurring external financing or foregoing the investment. The Company cannot guarantee that it will be able to execute its greenfield, brownfield or other investment projects, and to the extent that they proceed, that it will be able to complete them on schedule, within budget, or achieve an adequate return on its investment. Conversely, should the Company decide to postpone or cancel development projects, it could incur various negative consequences such as litigation or impairment charges, as well as loss of anticipated strategic benefits.

ArcelorMittal has investments in numerous joint ventures and associates. See “Properties and capital expenditures—Property, plant and equipment—Investments in joint ventures” and note 2.4 to the consolidated financial statements. In particular, it has structured significant growth transactions in recent years, including Calvert and AMNS India as joint ventures, and recently

restructured ADI as a joint venture. These joint ventures subject ArcelorMittal to several types of risks.

First, risks that are endemic to joint ventures generally due to their nature as entities over which control is shared. These include the risk of dead-lock and/or coordination issues affecting the implementation of strategy. To the extent joint ventures and associates are controlled and managed by partners, they may not fully comply with ArcelorMittal’s standards, controls and procedures, including ArcelorMittal’s health, safety, environment and community standards; this could lead to higher costs, reduced production or environmental, health and safety incidents or accidents, which could adversely affect ArcelorMittal’s results and reputation.

Second, joint ventures may be the source of substantial expenditures and financial exposure. Although ArcelorMittal’s joint ventures are responsible for their own debt repayment and it does not consolidate their indebtedness, ArcelorMittal may make substantial cash contributions to extend loans to and/or guarantee the debt or contractual obligations of its joint ventures. This may particularly be the case for joint ventures that are strategic and that are expanding and developing, such as AMNS India and Calvert. As of December 31, 2022, ArcelorMittal had given $4.4 billion of guarantees on behalf of associates and joint ventures, including $3.1 billion on behalf of AMNS India, $354 million on behalf of Calvert, $341 million in relation to outstanding lease liabilities for vessels operated by Global Chartering and $178 million on behalf of its joint venture Al Jubail (discussed further below). See notes 2.4.1, 2.4.2 and 9.4 to ArcelorMittal’s consolidated financial statements. Other sureties, first demand guarantees, letters of credit, pledges and other collateral included $375 million and $406 million of commitments given on behalf of associates as of December 31, 2022 and 2021, respectively, and $598 million and $452 million of commitments given on behalf of joint ventures as of December 31, 2022 and 2021, respectively. First demand guarantees include ones given for payments under operating contracts, such as energy supply contracts. In the current context of spiking energy prices and potential energy shortages, the risk of such guarantees being activated and leading to substantial financial exposure is increased.

Third, joint ventures and associates may experience financial difficulties. In such circumstances, ArcelorMittal may choose to restructure the joint venture, to contribute additional equity or to guarantee additional financing. The Company also may be exposed to loss of its investment or calls on existing guarantees. For example, the financial situation of ArcelorMittal’s joint venture in Saudi Arabia, Al Jubail, was negatively impacted by a slower than expected ramp-up of operations and required further funding in 2018 and 2019; it may require additional funding in the future. ArcelorMittal has provided shareholder

loans to assist with funding and has guaranteed some of the joint venture’s indebtedness (see above).

Finally, ArcelorMittal’s investments in joint ventures and associates may result in impairments. In 2020, as a result of lower cash flow projections resulting from weaker market conditions partially linked to the COVID-19 pandemic, the Company recognized a $211 million impairment charge with respect to its associate DHS Group. As of December 31, 2022, ArcelorMittal’s investments accounted for under the equity method had a carrying amount of $10.8 billion, including AMNS India ($3.4 billion), Acciaierie d'Italia ($1.2 billion), DHS Group ($791 million), China Oriental ($1.2 billion), Gonvarri ($673 million), Calvert ($884 million), Baffinland ($356 million) and VAMA ($351 million).

At each reporting date, in accordance with the Company’s accounting policy described in note 5.3 to the consolidated financial statements, ArcelorMittal reviews the carrying amounts of its tangible and intangible assets (goodwill is reviewed annually or whenever changes in circumstances indicate that the carrying amount may not be recoverable) to determine whether there is any indication that the carrying amount of those assets may not be recoverable through continuing use. If any such indication exists, the recoverable amount of the asset (or cash-generating unit) is reviewed in order to determine the amount of the impairment, if any.

If certain of management’s estimates change during a given period, such as the discount rate, capital expenditures, expected changes to average selling prices, growth rates, shipments and direct costs, the estimate of the recoverable amount of goodwill or the asset could fall significantly and result in impairment. While impairment does not affect reported cash flows, the decrease of the estimated recoverable amount and the related non-cash charge in the consolidated statements of operations could have a material adverse effect on ArcelorMittal’s results of operations. For example, in 2019, the Company recognized $1.3 billion of impairments on the fixed assets of ArcelorMittal USA (of which $660 million was reversed in 2020 in connection with the agreed sale to Cleveland-Cliffs) and a $75 million impairment at ArcelorMittal South Africa following downward revisions of cash flow projections. In 2020, the Company recorded impairment charges of $196 million, including $92 million related to the permanent closure of the coke plant in Florange (France) in the first quarter and $104 million following

the permanent closure of a blast furnace and steel plant in Krakow (Poland) in the third quarter. The Company also recognizes impairment in connection with intended sales, when the carrying amount of the disposal group is higher than the fair value less cost to sell. In this context, the Company recognized a total impairment charge of $994 million (including $888 million in connection with the intended sale of the ADI remedy assets and $86 million in relation to the sale of the Votorantim remedy assets) in 2018, an additional impairment of $497 million in 2019 related to the remedy asset sales for the ADI acquisition and a $331 million impairment charge with respect the Company’s plate assets in Europe in 2020. In 2022, the Company recognized a $1.0 billion impairment charge with respect to its Ukrainian operations. Substantial amounts of goodwill, tangible and intangible assets remain recorded on the Company’s consolidated statement of financial position. As of December 31, 2022, the Company’s balance sheet included $3.8 billion of goodwill.

More generally, no assurance can be given as to the absence of significant further impairment losses in future periods, particularly if market conditions deteriorate or as a result of the Russian invasion of Ukraine and any resulting economic impacts. In particular, changes in key assumptions used in the Group’s impairment tests, due to market conditions, regulations (including environmental regulations) or other reasons may result in additional impairment losses being recognized in the future in particular with respect to ACIS. In addition, for operations in jurisdictions where a legal obligation of carbon neutrality has been established (i.e., EU and Canada) the Company’s assumptions include the significant long-term investments necessary to reach the Group’s announced carbon emissions goals. With respect to operations in other jurisdictions where decarbonization will occur at a different pace, the Company increased risk premiums included in their discount rates until they are able to accelerate their decarbonization strategy to meet the 2050 carbon neutrality objective and a legal obligation arises in the relevant jurisdiction. The Company’s assumptions for future cash flows also include an estimate for costs that the Company expects to incur to acquire emission allowances, which primarily impacts the flat steel operations in Europe. The assumption for carbon emission cost is based on historical experience, expected opportunities to mitigate or otherwise offset such future costs and information available in respect of future changes. Due to economic developments, uncertainties over the pace of transition and available public funding support to implement low-emission technologies, political and environmental actions that will be taken to meet the carbon reduction goals, regulatory changes and emissions activity arising from climate-related matters, the Company’s assumptions used in the recoverable amount calculations, among others those relating to capital expenditure and carbon emission costs are inherently uncertain and may ultimately differ

from actual amounts. In addition, the ongoing conflict between Russia and Ukraine, its impact on demand and costs and any resulting further reduced production, sales and income of the Company’s Ukrainian operations increase the risk that the Company may need to record an additional impairment charge with respect to such operations. For further information on these risks, see notes 1.2 and 5.3 to the consolidated financial statements.

As of December 31, 2022, ArcelorMittal had total debt outstanding of $11.7 billion, including $2.6 billion of short-term debt and current portion of long-term debt (including payables to banks and the current portion of long-term debt) and $9.1 billion of long-term debt, net of current portion. As of December 31, 2022, ArcelorMittal had $9.4 billion of cash and cash equivalents and restricted cash, and $5.5 billion available to be drawn under existing credit facilities. The Company also relies on its true sale of receivables programs ($5.3 billion of trade receivables sold at December 31, 2022), as a way to manage its working capital cycle.

While ArcelorMittal’s indebtedness has decreased significantly in recent years, were it to increase substantially in the future, this could contribute to the Company’s vulnerability to adverse economic and competitive pressures in its industry, limit flexibility in planning for, or reacting to, changes in its business and industry; limit its ability to borrow additional funds on terms that are acceptable to the Company or at all. More generally, a further deterioration of market conditions may impact ArcelorMittal’s ability to refinance its indebtedness on acceptable conditions or at all.

Credit rating agencies could downgrade ArcelorMittal’s ratings either due to factors specific to ArcelorMittal, a prolonged cyclical downturn in the steel industry and mining industries, macroeconomic trends (such as global or regional recessions or economic shocks such as that resulting from the COVID-19 pandemic) or trends in credit and capital markets more generally, While ArcelorMittal’s long-term credit ratings were most recently affirmed by Moody’s (in September 2021), Standard & Poor’s (in February 2021) and Fitch (in May 2022), any future downgrades could lead to an increase in its cost of borrowing. (Due to commercial considerations the Fitch rating has been withdrawn and Fitch is no longer publishing ratings on ArcelorMittal.) The margin under ArcelorMittal’s principal credit facilities and certain of its outstanding bonds is subject to adjustment in the event of a change in its long-term credit ratings, and downgrades that occurred in 2012, 2015 and 2020 resulted in increased interest expense.

ArcelorMittal’s principal credit facilities contain restrictive covenants. These covenants limit, inter alia, 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. These restrictive covenants could limit ArcelorMittal’s operating and financial flexibility. Failure to comply with any covenant would enable the lenders to accelerate ArcelorMittal’s repayment obligations. Moreover, ArcelorMittal’s debt facilities have provisions whereby certain events relating to other borrowers within the ArcelorMittal group could, under certain circumstances, lead to acceleration of debt repayment under the credit facilities. Any invocation of these cross-acceleration clauses could cause some or all of the other debt to accelerate, creating liquidity pressures. In addition, the mere market perception of a potential breach of any financial covenant, to the extent in effect, could have a negative impact on ArcelorMittal’s ability to refinance its indebtedness on acceptable conditions.

Furthermore, some of ArcelorMittal’s debt is subject to floating rates of interest and thereby exposes ArcelorMittal to interest rate risk (i.e., if interest rates rise, ArcelorMittal’s debt service obligations on its floating rate indebtedness would increase). Depending on market conditions, ArcelorMittal from time to time uses interest-rate swaps or other financial instruments to hedge a portion of its interest rate exposure either from fixed to floating or from floating to fixed. ArcelorMittal had exposure to 87% of its long-term debt at fixed interest rates and 13% at floating rates as of December 31, 2022.

In addition to the foregoing specific risks relating to ArcelorMittal’s indebtedness, its share price is affected by the markets’ perception of its leverage.

ArcelorMittal could also, in order to increase its financial flexibility and strengthen its balance sheet, implement capital raising measures such as equity offerings (as was done in May 2009, January 2013, April 2016 and May 2020), which could (depending on how they are structured) dilute the interests of existing shareholders or require them to invest further funds to avoid such dilution. In addition, ArcelorMittal has undertaken and may undertake asset disposals in order to reduce debt, as it did over several years through 2020.

For further information on ArcelorMittal’s indebtedness see “Operating and financial review—Liquidity and capital resources,” “Operating results” and note 6.1.2 to the consolidated financial statements.

At December 31, 2022, ArcelorMittal had $8.6 billion recorded as deferred tax assets on its consolidated statement of financial position representing a $0.4 billion increase as compared to December 31, 2021. In 2021, deferred tax assets increased by $0.2 billion primarily due to the changes in the expectation of future profits mainly in Luxembourg. In 2022, the Company recorded deferred tax benefits of $0.4 billion mainly due to the recognition of deferred tax assets in Luxembourg following an increase in the future taxable income expectation on unrealized gains on derivative instruments. The deferred tax assets can be utilized only if, and only to the extent that, ArcelorMittal’s operating subsidiaries generate adequate levels of taxable income in future periods to offset the tax loss carry forwards and reverse the temporary differences prior to expiration. At December 31, 2022, the amount of future income required to recover ArcelorMittal’s deferred tax assets of $8.6 billion was at least $34.4 billion at certain operating subsidiaries.

ArcelorMittal’s ability to generate taxable income is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond its control. If ArcelorMittal generates lower taxable income than the amount it has assumed in determining its deferred tax assets, then the value of deferred tax assets will be reduced. In addition, assumptions regarding the future recoverability of deferred tax assets depend on management’s estimates of future taxable income in accordance with the tax laws applicable to ArcelorMittal’s subsidiaries in the countries in which they operate. If in the course of its assessments management determines that the carrying amount of any of its deferred tax assets may not be recoverable pursuant to such prevailing tax laws, the recoverable amount of such deferred tax assets may be impaired.

ArcelorMittal’s principal operating subsidiaries in Brazil, Canada, Europe and South Africa provide defined benefit pension and other post-retirement benefit plans to their employees. Some of these plans are currently underfunded, see note 8.2 to the consolidated financial statements for the total value of plan assets and any deficit.

ArcelorMittal’s funding obligations depend upon future asset performance, which is tied to equity and debt markets to a

substantial extent, the level of interest rates used to discount future liabilities, actuarial assumptions and experience, benefit plan changes and government regulation. Because of the large number of variables that determine pension funding requirements, which are difficult to predict, as well as any legislative action, future cash funding requirements for ArcelorMittal’s pension plans and other post-employment benefit plans could be significantly higher than current estimates. Increases in the general life expectancy assumption have contributed to increases in the defined benefit obligation. In these circumstances, funding requirements could have a material adverse effect on ArcelorMittal’s business, financial condition, results of operations or prospects.

ArcelorMittal operates and sells products globally and as a result, its business, financial condition, results of operations or prospects could be adversely affected by fluctuations in exchange rates. A substantial portion of ArcelorMittal’s assets, liabilities, operating costs, sales and earnings are denominated in currencies other than the U.S. dollar (ArcelorMittal’s reporting currency). Accordingly, its results of operations are subject to translation risk (i.e., the U.S. dollar value of revenue and profits generated in other currencies and its debt denominated in other currencies) and transaction risk (i.e., a mismatch between the currency of costs and revenue). Foreign exchange gain for the year ended December 31, 2022 was $191 million as compared to a $155 million loss for the year ended December 31, 2021.

Moreover, ArcelorMittal operates in several countries whose currencies are, or have in the past been, subject to limitations imposed by those countries’ central banks, or which have experienced sudden and significant devaluations. In emerging countries where ArcelorMittal has operations and/or generates substantial revenue, such as Argentina, Brazil, India, South Africa, Venezuela, Kazakhstan and Ukraine, the risk of significant currency devaluation is high. For example, the Argentinian peso has continued to substantially depreciate since 2018, and in 2021, it depreciated approximately 22.1% versus the U.S dollar. Moreover, inflation in 2019 reached its highest point since 1991 at 53.8% attesting the hyperinflationary dimension of Argentina’s economy. In order to slow peso depreciation, and in response to the economic situation, the Argentinian government enacted a series of currency controls which require central bank permission to exchange pesos for foreign currency. In 2022, most currencies depreciated against the U.S. dollar, in a context of rising inflation and interest rates.

Currency devaluations, the imposition of new exchange controls or other similar restrictions on currency convertibility, or the tightening of existing controls in the countries in which ArcelorMittal operates could adversely affect its business, financial condition, results of operations or prospects. See “Business overview— Government regulations—Key currency regulations and exchange controls” and “Operating and financial review—Key factors affecting results of operations—Impact of exchange rate movements.”

At December 31, 2022, a trust (HSBC Trustee (C.I.) Limited, as trustee), of which Mr. Lakshmi N. Mittal, Mrs. Usha Mittal and their children are the beneficiaries (referred to as the “Significant Shareholder”), beneficially owned (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) ordinary shares amounting to 330,534,323 in the aggregate (when aggregated with ordinary shares of ArcelorMittal held directly by Mr. Lakshmi N. Mittal and Mrs. Usha Mittal) , representing 41.04% of ArcelorMittal’s then outstanding shares. The foregoing statement does not give effect to the ordinary shares resulting from the conversion of the mandatorily convertible subordinated notes issued in May 2020 outstanding as of December 31, 2022. Assuming conversion of all such outstanding mandatorily convertible subordinated notes (including those held by the Significant Shareholder), the Significant Shareholder would, together with Mr. and Mrs. Mittal, beneficially own 341,574,803 ordinary shares representing 36.15% of issued shares (assuming conversion of all notes at the maximum conversion ratio) or 339,930,443 ordinary shares representing 36.36% of issued shares (assuming conversion of all notes at the minimum conversion ratio). As a result, the Significant Shareholder has the ability to significantly influence the decisions adopted at the ArcelorMittal general meetings of shareholders, including matters involving mergers or other business combinations, the acquisition or disposition of assets, issuances of equity and obtaining funding through debt. The Significant Shareholder also has the ability to significantly influence a change of control of ArcelorMittal. For further information on the Company’s major shareholders, see “Shareholders and markets—Major shareholders”.

As a holding company, ArcelorMittal is dependent on the earnings and cash flows of, and dividends and distributions

from, its operating subsidiaries to pay expenses, meet its debt service obligations, pay any cash dividends or distributions on its ordinary shares or conduct share buy-backs. 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. These subsidiaries may also experience operating difficulties that impact their cash flows. For example, ArcelorMittal South Africa has experienced significant difficulties in recent years, including significant outstanding debt, issues with market demands, supply chain disruptions, labor strikes, volatility of the rand vs. U.S. dollar, the effects of the COVID-19 pandemic and national lockdowns. Ongoing difficulties resulted in 2016 in a rights offering entirely underwritten by ArcelorMittal and an additional cash injection from ArcelorMittal, and the auditor reports for 2019 and 2020 included a material uncertainty related to going concern.

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. Under the laws of Luxembourg, ArcelorMittal will be able to pay dividends or distributions through income from industrial franchise fees or to the extent that it is entitled to receive cash dividend distributions from its subsidiaries, recognize gains from the sale of its assets or record share premium from the issuance of shares.

If the earnings and cash flows of its operating subsidiaries are substantially reduced, ArcelorMittal may not be in a position to meet its operational needs or to make shareholder distributions in line with announced proposals.

ArcelorMittal is subject to a broad range of environmental, health and safety laws and regulations in each of the jurisdictions in which it operates. These laws and regulations impose increasingly stringent standards regarding general health and safety, air emissions, wastewater storage, treatment and discharges, the use, handling and transportation of hazardous, toxic or dangerous materials, waste disposal practices and the remediation of environmental contamination, and health and safety matters, among other things. The costs of

complying with, and the imposition of liabilities pursuant to these laws and regulations can be significant, and compliance with new and more stringent obligations may require additional capital expenditures or modifications in operating practices. Failure to comply can result in civil and or criminal penalties being imposed, the suspension of permits, requirements to curtail or suspend operations and lawsuits by third parties.

In the EU, the Industrial Emissions Directive (“IED”) defines the so called Best Available Techniques (“BAT”) and sets the ranges of values that need to be established as limits in the environmental permits. The BAT are also used in other regions as reference, and are periodically reviewed (in theory, an eight-year cycle) to ensure a continuous improvement of environmental performance. The European Commission has started the review of the IED, with a proposal published in April 2022, which aims at the strengthening of the permitting framework, supported by growing general concerns about the effects of pollution on the environment and human health.

Despite ArcelorMittal’s efforts to comply with environmental, health and safety laws and regulations, and monitor and reduce accidents at its facilities, health, safety and environmental incidents or accidents, including those involving serious injury or death, have occurred and may in the future occur. Such accidents could include explosions or gas leaks, fires or collapses in underground mining operations, crushing incidents, vehicular accidents, falls while working at heights, and other accidents involving mobile equipment, or exposure to radioactive or other potentially hazardous, toxic or dangerous materials, which could have significant adverse consequences for the Company’s workers and facilities, as well as the environment.

Certain of these incidents may result in costs and liabilities and negatively impact the Company’s reputation or the operations of the affected facilities. Such accidents could lead to production stoppages, loss of personnel, loss of key assets, or put at risk the Company’s employees (and those of sub-contractors and suppliers) or persons living near affected sites. Even if ArcelorMittal’s liability were to be covered by insurance, its insurance premium may rise as a result. See also “ArcelorMittal’s insurance policies provide limited coverage, potentially leaving it uninsured against some business risks.” In addition, any gap between community and worker expectations and ArcelorMittal’s environmental, health and safety perceived performance, as a result of any accidents, safety incidents or even the perception of potential safety or environmental issues, may negatively impact community relations, labor relations, customer relations and the Company’s reputation and result in disruptions to the Company’s operations.

In addition, accidents may arise from the usage of certain types of equipment or from the adoption of operating practices that

prove to be insufficiently safe or the failure to follow the Company’s standard operating procedures. Accidents may also be caused by human error, the lack of knowledge by its employees on what to do in a given situation or the inability of its employees to follow the prescribed protocols in a given situation. Working in remote or hazardous conditions, where it may be more difficult to mitigate the consequences of an accident or put in place certain preventative measures, may further increase such risks. Furthermore, the Company’s ability to conduct certain in-person health and safety training sessions for its employees has been impeded by restrictions resulting from the COVID-19 pandemic, which has had negative effects on ArcelorMittal’s recent health and safety record. The occurrence of an accident also may lead to legal claims that seek to hold the Company liable, and it may not be successful in defending against such claims.

ArcelorMittal also incurs costs and liabilities associated with the assessment and remediation of contaminated sites, and in its mining activities, those resulting from tailings and sludge disposal, effluent management, and rehabilitation of land disturbed during mining processes. In addition to the impact on current facilities and operations, environmental remediation obligations can give rise to substantial liabilities in respect of divested assets and past activities. This may also be the case for acquisitions when liabilities for past acts or omissions are not adequately reflected in the terms and price of the acquisition. ArcelorMittal could become subject to further remediation obligations in the future, as additional contamination is discovered or clean-up standards become more stringent.

ArcelorMittal could become subject to unidentified liabilities in the future, such as those relating to uncontrolled tailings breaches or other future events or to underestimated emissions of polluting substances. For example, mining companies have incurred substantial liabilities in connection with the failure of tailing pond dams. In February 2019, the Company decided as a precautionary measure to implement its plan to evacuate the community situated downstream of its dormant Serra Azul tailing dam with a 5.8Mm3 tailings volume in Brazil. The decision was based on an updated site-based assessment following recent incidents in the Brazilian mining sector pending further testing and implementation of any necessary mitigation measures. Pursuant to the Complementary Agreement Term signed on June 7, 2021 between ArcelorMittal Brasil and the Federal and State Prosecutor Offices, ArcelorMittal Brasil is obligated to execute an action plan to ensure the stability, safety and decommissioning of the Serra Azul tailing dam (the “Serra Azul Project”). As of December 31, 2022, the Company had recognized provisions amounting to $187 million for the Serra Azul Project. See “Business overview— Sustainable development—Fundamental focus on tailings dam safety and impacts". At certain tailing pond dams, a risk of overfilling can

result in costly evacuation of hazardous waste being required to avoid contamination of the site.

ArcelorMittal’s operations may also be located in areas where individuals or communities could regard its activities as having a detrimental effect on their natural environment and conditions of life. Any actions taken by such individuals or communities in response to such concerns could compromise ArcelorMittal’s profitability or, in extreme cases, the viability of an operation or the development of new activities in the relevant region or country.

For further information, see “Business overview—Government regulations—Health and safety laws and regulations” and “Business overview—Government regulations—Environmental laws and regulations” and note 9.1 to the consolidated financial statements.

Other regulations have been implemented in Argentina, Ukraine and Canada and additional measures may be enacted in the future in other jurisdictions, further increasing the complexity of compliance with environmental laws and regulations.

This would contribute to a very significant shortage in free allocation in the later years of the second trading period of Phase IV. This could result in the Company incurring significant additional costs to acquire emissions allowances, the purchase of which may or may not be effectively hedged in the future. The financial impact will also depend on the evolution of the

allowances price and the Company’s parallel progress in decarbonization, the cost of which may also be higher than currently expected. In addition, the effectiveness of the CBAM proposal against carbon leakage is untested, the provisions to address circumvention risks, including resource shuffling and cost absorption seem insufficient, and no solution for exports has been yet considered. In December 2022, the Council and the European Parliament reached a provisional agreement on CBAM that will need to be confirmed by ambassadors of the EU member states, and by the European Parliament, and adopted by both institutions before it is final. Under the provisional agreement, CBAM will begin to operate from October 2023 onwards and is expected to be phased in gradually, in parallel to a phasing out of free allocations, once it begins under the revised EU ETS for the sectors concerned. In addition, CBAM will be set up to equalize the price of carbon paid for EU products operating under the EU ETS and for imported goods by requiring companies that import into the EU to purchase so-called CBAM certificates to pay the difference between the carbon price paid in the country of production and the price of carbon allowances in the EU ETS. Nonetheless, no assurance can be given as to the timing or adoption of the provisional agreement or its implementation.

In addition, as regulators and investors increasingly focus on climate change issues, the Company is exposed to the risk of frameworks and regulations being adopted that are ill-adapted to its operations. For example, the most established framework for carbon pricing and emissions trading schemes is currently the European Union’s ETS discussed above. As mentioned above, the Company has highlighted the importance that a CBAM be included in this system in order to avoid competitive distortions such as European steel becoming overpriced due to European carbon policy, prompting the market to outsource its steel from other regions where carbon is less expensive. With respect to investors, the European Union has reached a political agreement on a package of measures to implement key actions with respect to its sustainable finance plan, and, in June 2020, the European Commission published the EU Taxonomy for Sustainable Finance, a unified classification system to define what can be considered an environmentally sustainable economic activity, as a step in the efforts to channel investments into sustainable activities by making it clearer which economic activities most contribute to meeting the EU’s environmental objectives. The Taxonomy Delegated Act on climate mitigation and adaptation criteria is effective as of January 1, 2022 but Delegated Acts for the four other environmental objectives are still pending, which at present prevents determination as to when an activity can be considered environmentally sustainable. A proposal for a Corporate Sustainability Reporting Directive (“CSRD”), which envisages the adoption of EU sustainability reporting standards to be developed by the European Financial Reporting Advisory Group (“EFRAG”), with such standards to be

tailored to EU policies building on and contributing to international standardization initiatives, was adopted by the European Parliament on November 10, 2022 and by the Council on November 28, 2022. The CSRD will enter into force 20 days thereafter and will apply to ArcelorMittal as from January 1, 2024. The SEC has also proposed new climate change disclosure requirements . If the standards or requirements adopted are not appropriate for the Company or if investors, financial institutions or other stakeholders, including the public, begin to view investments in steel and mining as undesirable, it may become more difficult and/or more expensive for the Company to obtain financing. While the Company has taken significant steps and continues to adapt its operations in light of climate change and the need for sustainability, such steps may not be in line with future frameworks or regulations or market views of investment suitability. Moreover, the Company may in the future face increasing shareholder activism and/or litigation in relation to sustainability matters. See also “The Group’s carbon emissions intensity reduction targets are based on current assumptions with respect to the costs, government and societal support for the reduction of carbon emissions in particular regions and the advancement of technology and infrastructure related to the reduction of carbon emissions over time, which may not correspond in the future to ArcelorMittal’s current assumptions and may render its targets more costly, more difficult, or even impossible, to achieve.”

For further information on environmental laws and regulations and how they affect the Company’s operations, see “Business overview—Government regulations—Environmental laws and regulations” and note 9.1 to the consolidated financial statements.

Taxes payable by companies in many of the countries in which ArcelorMittal operates are substantial and include value-added tax, excise duties, profit taxes, payroll-related taxes, property taxes, mining taxes and other taxes. Tax laws and regulations in some of these countries may be subject to frequent change, varying interpretation and inconsistent enforcement. Ineffective tax collection systems and national or local government budget requirements may increase the likelihood of the imposition of arbitrary or onerous taxes and penalties, which could have a material adverse effect on ArcelorMittal’s financial condition and results of operations. In addition to the usual tax burden imposed on taxpayers, these conditions create uncertainty as to the tax implications of various business decisions. This uncertainty could expose ArcelorMittal to significant fines and penalties and to enforcement measures despite its best efforts

at compliance, and could result in a greater than expected tax burden. See note 10 to the consolidated financial statements.

In addition, many of the jurisdictions in which ArcelorMittal operates have adopted transfer pricing legislation. If tax authorities impose significant additional tax liabilities as a result of transfer pricing adjustments, it could have a material adverse effect on ArcelorMittal’s financial condition and results of operations.

It is possible that tax authorities in the countries in which ArcelorMittal operates will introduce additional revenue raising measures. The introduction of any such provisions may affect the overall tax efficiency of ArcelorMittal and may result in significant additional taxes becoming payable. Any such additional tax exposure could have a material adverse effect on the Company’s financial condition and results of operations.

ArcelorMittal may face a significant increase in its income taxes if tax rates increase or the tax laws or regulations in the jurisdictions in which it operates, or treaties between those jurisdictions, are modified in an adverse manner. This may adversely affect ArcelorMittal’s cash flows, liquidity and ability to pay dividends.

ArcelorMittal operates, or proposes to operate, in a large number of emerging markets. In recent years, many of these countries have implemented measures aimed at improving the business environment and providing a stable platform for economic development. ArcelorMittal’s business strategy has been developed partly on the assumption that this modernization, restructuring and upgrading of the business climate and physical infrastructure will continue, but this cannot be guaranteed. Any slowdown in the development of these economies could have a material adverse effect on ArcelorMittal’s business, financial condition, results of operations or prospects, as could insufficient investment by government agencies or the private sector in physical infrastructure. For example, the failure of a country to develop reliable electricity and natural gas supplies and networks, and any resulting shortages or rationing, could lead to disruptions in ArcelorMittal’s production.

Moreover, some of the countries in which ArcelorMittal operates have been undergoing substantial political transformations from centrally controlled command economies to market-oriented systems or from authoritarian regimes to democratically elected

governments and vice-versa. Political, economic and legal reforms necessary to complete such transformation may not progress sufficiently. On occasion, ethnic, religious, historical and other divisions have given rise to tensions and, in certain cases, wide-scale civil disturbances and military conflict. The political systems in these countries are vulnerable to their populations’ dissatisfaction with their government, reforms or the lack thereof, social and ethnic unrest and changes in governmental policies, any of which could have a material adverse effect on ArcelorMittal’s business, financial condition, results of operations or prospects and its ability to continue to do business in these countries. As an example, in Kazakhstan, there were widespread protests (and violent clashes between protestors and police) in early January 2022, resulting in a government crackdown (aided by Russian forces). The prospect of further unrest and resulting political or economic destabilization cannot be ruled out. Furthermore, certain of ArcelorMittal’s operations are also located in areas where acute drug-related violence (including executions and kidnappings of non-gang civilians) occurs and the largest drug cartels operate, such as the states of Michoacán, Sinaloa and Sonora in Mexico.

Certain emerging markets where ArcelorMittal has operations have experienced or are experiencing particularly difficult operating conditions. In Brazil, for example, despite a strong rebound post pandemic, GDP is still below its first quarter of 2014 peak amid continued political uncertainty. Economic growth in South Africa has been weak since entering a recession in the second quarter of 2018, and prior to this recession, the South African steel and mining industries have been subject to a challenging operating environment characterized by lower local demand, increased cheap imports and higher costs, resulting in losses in recent years for ArcelorMittal South Africa. Many emerging markets are also at risk of economic crises (be it external debt, currency, domestic corporate, household or public debt crises) usually brought on by an economic or political shock which can exacerbate existing domestic structural imbalances. Crises in Argentina and Turkey in 2018/19 were examples and had negative impacts on the Company’s core markets in Brazil and the EU, respectively. Other countries at risk of further economic crises include Turkey (renewed external debt/Lira crisis and a sharp downturn in domestic demand), South Africa (in relation to its public debt), Ukraine (external debt), Brazil (long term public debt sustainability) and to a lesser extent India (again in relation to its public debt).

Finally, ArcelorMittal’s operations in certain countries may be affected by military conflicts. The current situation in Ukraine, where the Company has substantial operations, is an example. See “—Russia’s invasion of Ukraine, international reaction to it (in particular in the form of sanctions) and any regional or global

escalation of the conflict, could adversely affect the Company’s business, results of operations and financial condition.”

In addition, epidemics and/or pandemics may affect ArcelorMittal’s operations in certain regions and, in some cases, globally. See “—Disruptions to ArcelorMittal’s manufacturing processes caused for example by equipment failures, natural disasters, accidents, epidemics, pandemics, geopolitical conflicts or extreme weather events could adversely affect its operations, customer service levels and financial results and liabilities” above.

Moreover, the legal systems in some of the countries in which ArcelorMittal operates remain less than fully developed, particularly with respect to the independence of the judiciary, property rights, the protection of foreign investment and bankruptcy proceedings, generally resulting in a lower level of legal certainty or security for foreign investment than in more developed countries. ArcelorMittal may encounter difficulties in enforcing court judgments or arbitral awards in some countries in which it operates because, among other reasons, those countries may not be parties to treaties that recognize the mutual enforcement of court judgments. Assets in certain countries where ArcelorMittal operates could also be at risk of expropriation or nationalization, and compensation for such assets may be below fair value. For example, the Venezuelan government has implemented a number of selective nationalizations of companies operating in the country to date. Although ArcelorMittal believes that the long-term growth potential in emerging markets is strong, and intends them to be the focus of the majority of its near-term growth capital expenditures, legal obstacles could have a material adverse effect on the implementation of ArcelorMittal’s growth plans and its operations in such countries.

ArcelorMittal’s business encompasses multiple jurisdictions and complex regulatory frameworks, including in relation to antitrust, and economic sanctions, anti-corruption and anti-money laundering matters. Laws and regulations in these areas are complex and constantly evolving and enforcement of them continues to increase. ArcelorMittal may as a result become subject to increasing limitations on its business activities and to the risk of fines or other sanctions for non-compliance. From time to time, the Company is subject to review by authorities

that monitor market power in any of the markets in which it operates. To the extent that ArcelorMittal is deemed by relevant authorities to exhibit significant market power, it can be subject to various regulatory obligations and restrictions, such as disposing of assets or granting access to its operations to third parties or being prevented from completing acquisitions, which could thereby adversely affect its results of operations and profitability. As a result of its position in the steel industry and its historical growth through acquisitions, ArcelorMittal could be subject to governmental investigations and lawsuits by private parties based on antitrust laws. These could require significant expenditures and result in liabilities or governmental orders that could have a material adverse effect on ArcelorMittal’s business, operating results, financial condition and prospects. ArcelorMittal and certain of its subsidiaries are currently under investigation by governmental entities in several countries, and are named as defendants in a number of lawsuits relating to various antitrust matters. Antitrust proceedings, investigations and follow-on claims involving ArcelorMittal subsidiaries are currently pending in various countries, including Brazil and Spain. See note 9.3 to the consolidated financial statements. Because of the fact-intensive nature of the issues involved and the inherent uncertainty of such litigation and investigations, the nature of the resolutions of such proceedings are difficult to forecast but negative outcomes are possible. An adverse ruling in the proceedings described above or in other similar proceedings in the future could subject ArcelorMittal to substantial administrative penalties and/or civil damages. No assurance can be given that the Company will not be identified as having significant market power in any relevant markets in the future and that it will not be subject to additional regulatory requirements.

ArcelorMittal’s governance and compliance processes, which include the review of internal controls over financial reporting as well as a Code of Business Conduct and other rules and protocols for the conduct of business, may not prevent breaches of laws and regulations or internal policies relating to compliance matters at ArcelorMittal or its subsidiaries, as well as to instances of non-compliant behavior by its employees, contractors or other agents. This risk is also present at ArcelorMittal’s joint ventures and associates where ArcelorMittal has a non-controlling stake and does not control governance practices or accounting and reporting procedures.

Unfavorable outcomes in current and potential future litigation and investigations relating to anti-trust and compliance matters could reduce ArcelorMittal’s liquidity and negatively affect its profitability, cash flows, results of operations and financial condition, as well as harm its reputation.

ArcelorMittal’s profitability or cash flows in a particular period could be affected by adverse rulings in current and future legal proceedings against the Company. See note 9.3 to the consolidated financial statements.

In addition, ArcelorMittal sells products to major manufacturers engaged in manufacturing and selling a wide range of end products, including products used in certain safety-critical applications, such as, for example, pipes used in gas or oil pipelines and in automotive applications. ArcelorMittal also from time to time offers advice to these manufacturers. There could be significant consequential damages resulting from the use of or defects in such products. While ArcelorMittal has a limited amount of product liability insurance coverage, a major claim for damages related to ArcelorMittal products sold and, as the case may be, advice given in connection with such products, could leave ArcelorMittal uninsured against a portion or the entirety of such an award and materially harm its financial condition and future operating results.

ArcelorMittal’s business depends on the transfer of data between its affiliated entities, to and from its business partners, and with third-party service providers, which may be subject to global data privacy laws and cross-border transfer restrictions. While ArcelorMittal takes steps to comply with these legal requirements, the volatility and changes to the applicability of those laws, as well as evolving standards and judicial and regulatory interpretations of such laws may impact ArcelorMittal’s ability to effectively transfer data across borders in support of its business operations that may lead to possible administrative, civil, or criminal liability, as well as reputational harm to the Company and its employees. ArcelorMittal has taken actions necessary to comply with the GDPR, which became enforceable on May 25, 2018, including the adoption of the Binding Corporate Rules, designed to allow ArcelorMittal to transfer personal data from the EU and the European Economic Area (“EEA”) to its affiliates located outside of the EU/EEA in compliance with the GDPR. The GDPR creates a range of compliance obligations for subject companies and increases financial penalties for non-compliance. Other countries in which ArcelorMittal operates or has a presence such as Brazil, India and South Africa have or are in the process of adopting similar legislation for the protection of personal information. Ensuring compliance will require investments to improve business processes, IT solutions and security solutions. The costs of compliance with GDPR and similar legislation for the protection of personal data and the potential for fines and penalties in the

event of a breach of these laws may have an adverse effect on ArcelorMittal’s business and operations.

ArcelorMittal is incorporated under the laws of the Grand Duchy of Luxembourg with its principal executive offices and corporate headquarters in Luxembourg. The majority of ArcelorMittal’s directors and senior management are residents of jurisdictions outside of the United States. The majority of ArcelorMittal’s assets and the assets of these persons are located outside the United States. As a result, U.S. investors may find it difficult to effect service of process within the United States upon ArcelorMittal or these persons or to enforce outside the United States judgments obtained against ArcelorMittal or these persons in U.S. courts, including actions predicated upon the civil liability provisions of the U.S. federal securities laws. Likewise, it may also be difficult for an investor to enforce in U.S. courts judgments obtained against ArcelorMittal or these persons in courts in jurisdictions outside the United States, including actions predicated upon the civil liability provisions of the U.S. federal securities laws. It may also be difficult for a U.S. investor to bring an original action in a Luxembourg court predicated upon the civil liability provisions of the U.S. federal securities laws against ArcelorMittal’s directors and senior management and non-U.S. experts named in this annual report.

Management is responsible for internal control in the Company and it has implemented on an ongoing basis a robust short, medium and long-term risk – including ESG and climate-related risks – management and control system, which is designed to ensure its business is focused on achieving its objectives and that significant risks are identified and mitigated. The system is also designed to ensure compliance with relevant laws and regulations.

The Company’s risk management and internal control system is designed to determine risks in relation to the achievement of business objectives and appropriate risk responses. The establishment and maintenance of a risk identification and management process is the responsibility of site/segment/ corporate function management. Risks are owned and monitored by management. Risk officers designated by management facilitate the conversations and help monitoring the action plans. Critical risks are escalated through existing reporting lines. Critical risk decisions are not dissociated from the other decisions. Risks are analyzed by building models and developing scenarios to understand potential financial impacts. Short-term risks (within a 12-month time frame) are identified through a bottom-up process by respective management teams. Risks are identified through a defined process by respective

management teams. Business segments and corporate functions consolidate the identified risks and report the top ones as part of the periodic reporting to key internal stakeholders. The Company uses a risk management framework based on a blend of a COSO 2013, ISO 31000 and an in-house model. Sites assess risks, including ESG and climate related risks, by assigning them a probability of occurrence, potential financial impact and/or non-financial consequences. Global trends, and the risks and opportunities identified as arising from them, are used to inform the Company’s strategic outlook and planning.

Based on management reviews, reviews of the design and implementation of the Company’s risk management approach and business and functional risk committees, management provides an assessment each year, as required by law, of the effectiveness of the Company’s risk management process.

It should be noted, however, that the above does not imply that these systems and procedures provide certainty as to the realization of operational and financial business objectives, nor can they prevent all misstatements, inaccuracies, errors, fraud and non-compliance with rules and regulations.

The Audit & Risk Committee assists the Board of Directors with the oversight of risks to which the ArcelorMittal group is exposed and in the monitoring and review of the risk-management framework and process.

The global assurance risk management function facilitates the risk management process and provides support formalizing a quarterly process enabling business/corporate functions to identify these risks and opportunities to the business – based on social, environmental, regulatory, workforce, stakeholder, resource, technological and other trends – and specify mitigation actions. A consolidated report is shared on a bi-annual basis with the key stakeholders.

With respect to climate, the work is coordinated by ArcelorMittal’s executive officer for business optimization in consultation with segment CEOs; discussed on a regular basis by the Group Management Committee; and overseen by the Executive Office, which provides leadership and guidance. The Company’s climate strategy financial risks are brought to the attention of the Group Management Committee and where financially significant at a group level, they are addressed at the Corporate Finance and Tax Committee. Central to the Company's approach is its work to advocate for policy support strategy to ensure that ArcelorMittal can respond to rising carbon prices with viable investments in decarbonization technologies. At the same time, all of ArcelorMittal's business segments are required to prepare carbon emission reduction plans to reach net zero by 2050 as part of the annual planning cycle.

With respect to security, the Company has put in place means to ensure the security of its people, assets and intellectual property by supporting business units on security governance, security risk management, operational security, strategy and continuous improvement. It develops and promotes security policies, procedures, tools and processes to support security process owners with identifying and assessing security risks, related to people, assets and intellectual property. It also identifies gaps, and implements appropriate leading practice security controls to promote more secure and resilient business environments.

As regards risks relating to the security of information systems, ArcelorMittal has developed governance and security rules which describe the recommended organization, infrastructure and operating procedures. These provisions are applied across the Company under the responsibility of the business segments. The Group Chief Information Security Office defines cyber security policies available and applicable for all segments/units globally and develops general directives in cyber security reflecting mission, goals and values of ArcelorMittal. The cyber security policy is focusing on protecting information systems against disclosure to unauthorized users (confidentiality), improper modification (integrity) and non-access when required (availability). In addition, cyber maturity assessments are performed annually in many business units and they are supplemented by in-depth cyber audits and penetration testing exercises performed by Global Assurance.

Regarding risks relating to changes in the regulatory environment and business ethics, the Legal, Compliance & Company Secretary Department ("LCCSD") reporting to the Chief Financial Officer establishes the Company's legal policy. It provides effective advise to assist in identification and monitoring of legal, regulatory and governance risks. The LCCSD is supported by regional / segment general counsels located across the business, who are further supported by unit or country general counsels. The Compliance structure is headed by Group Compliance and Data Protection Officer who reports to Group Head of Legal. The Group Compliance and Data Protection Officer is supported by a Corporate Compliance team and a Group-wide compliance network.

ArcelorMittal maintains insurance policies to cover physical loss or damage to its property and equipment on a reinstatement basis arising from a number of specified risks, including certain natural disasters, such as earthquakes, floods or windstorms, acts of terrorism and certain consequential losses, including business interruption arising from the occurrence of an insured event under the said policies.

ArcelorMittal also purchases worldwide third-party public and product liability insurance coverage for all of its subsidiaries.

Various other types of insurance are also maintained, such as comprehensive construction and contractor insurance for its greenfield and major capital expenditures projects, directors and officers liability, transport, and charterers’ liability, as well as other customary policies such as car insurance, travel assistance and medical insurance.

Each of the operating subsidiaries of ArcelorMittal maintains various local insurance policies that are mandatory at the local level, such as employer liability, workers compensation and auto liability, as well as specific insurance such as public liability to comply with local regulations.

In addition, ArcelorMittal maintains trade credit insurance on receivables from selected customers, subject to limits that it believes are consistent with those in the industry, in order to protect it against the risk of non-payment due to customers’ insolvency or other causes. Not all of ArcelorMittal’s customers are or can be insured, and even when insurance is available, it may not fully cover the exposure.

ArcelorMittal believes that its insurance coverage is in line with industry practice and sufficient to cover normal risks in its operations. Notwithstanding the insurance coverage that ArcelorMittal and its subsidiaries carry, the occurrence of an event that causes losses in excess of limits specified under the relevant policy, or losses arising from events not covered by insurance policies, could materially harm ArcelorMittal’s financial condition and future operating results.

ArcelorMittal's internal control framework is based on the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") 2013. It includes the following five components: control environment, risk assessment, control activity, information and communication and monitoring activities.

ArcelorMittal's internal controls aim to provide reasonable assurance but not absolute assurance because of its inherent limitations about effectiveness and efficiency of business operations, reliability of financial information, compliance with laws and regulations and compliance with policies and procedures. The organization of ArcelorMittal's internal control is aligned with group organization following which business segments and operational entities are directly accountable for establishing and maintaining effective and adequate internal controls and procedures that conform to the regulatory framework. The principles of control fit into the framework of the rules of corporate governance. In particular, these rules task the Audit & Risk Committee with monitoring the effectiveness of the internal control and risk management systems and of the internal audit, particularly as regards the procedures for

preparing and dealing with accounting, financial and non-financial reporting.

ArcelorMittal's control environment is primarily based on its Code of Business Conduct and supported by a comprehensive framework of policies and procedures in areas such as human rights, anti-corruption and insider dealing. These documents reflect the principles and concepts of the UN Global Compact, the OECD Guidelines on Multinational Enterprises and UN Sustainable Development Goal 16: peace, justice and strong institutions. The Company’s Code of Business Conduct defines what acting with integrity means in practice. It applies to all directors, officers and employees of ArcelorMittal worldwide. To maintain knowledge about the Code of Business Conduct and other aspects of compliance, employees take part in training programs based on a matrix system covering economic sanctions, prevention of corruption, insider dealing regulation, fraud awareness and prevention, anti-trust issues, human rights, data protection and Code of Business Conduct every three years.

The Board of Directors, with the support of its Committees, ensures that internal control functions operate properly. The Audit & Risk Committee monitors the effectiveness of internal control and risk management systems implemented by the Board of Directors and management. As part of its role to foster open communication, the Audit & Risk Committee meets at least annually with management, the head of the internal audit department and the Company’s independent accountants in separate executive sessions to discuss any matters that the Audit & Risk Committee or each of these persons believe should be discussed privately. Management's responsibility is to ensure that the organizational structure plans, executes, controls and periodically assesses the Company's activities. It regularly reviews the relevance of the organizational structures so as to be in a position to adapt them swiftly to changes in the activities and in the environment in which they are carried out. The business segments' and operational entities' management are responsible for the internal control and risk management system within their scope of responsibility.

ArcelorMittal has defined responsibilities that cover the three dimensions of internal control: operational management, which is responsible for implementing internal control, support functions such as Finance, Legal, Treasury or Human Resources, which prescribe the internal control systems, verify their implementation and effectiveness and assist operational employees, and internal assurance who, through their audit reports, provide recommendations to improve the effectiveness of the systems.

Following a risk-based approach, any process or management system may be the subject of an internal audit performed by the

Global Assurance Department reporting to both the Audit & Risk Committee chair and the Group Executive Chairman in accordance with the international framework of the internal audit and its Code of Ethics. The audit plan, which is based on an analysis of the risks fed by a structured dynamic risk mapping process, is submitted annually to the Audit & Risk Committee. It presents its conclusions to the management of operational entities and business segments and reports to the Audit & Risk Committee.

The design and effectiveness of the key operational, financial and information technology controls related to internal control over financial reporting, are regularly examined and assessed in compliance with the Sarbanes-Oxley Act.

ArcelorMittal’s success is built on its core values of sustainability, quality and leadership and the entrepreneurial boldness that has empowered its emergence as the first truly global steel and mining company. Acknowledging that a combination of structural issues and macroeconomic conditions will continue to challenge returns in its sector, the Company has adapted its footprint to the new demand realities, intensified its efforts to control costs and repositioned its operations to outperform its competitors. The Company is also developing and implementing a plan to decarbonize its steel and mining assets and achieve carbon neutrality by 2050.

Against this backdrop, ArcelorMittal's strategy is to leverage four distinctive attributes in aiming to capture leading positions in the most attractive areas of the steel industry value chain, from mining at one end to distribution and first-stage processing at the other:

present in, and will further develop, attractive steel businesses that benefit from favorable market structures or geographies. In developing attractive steel businesses, ArcelorMittal’s goal is to be the supplier of choice by anticipating customers’ requirements and exceeding their expectations. It will invest to develop and grow these businesses and enhance its ability to serve its customers. Given the volatile nature of the industry, these investments will be highly disciplined, balancing financial and sustainable considerations with targeted strategic opportunities. Commodity steel markets will inevitably remain an important part of ArcelorMittal’s steel portfolio. Here, a lean cost structure should limit the downside in weak markets while allowing the Company to capture the upside in strong markets. Finally, ArcelorMittal is developing a strategic response to the challenges and opportunities posed by decarbonization, which it believes will fundamentally change the market structure of the steel industry.

Critical to implementing this strategy are five key enablers:

The Company’s Global Research and Development ("R&D" or "Global R&D") division provides the technical foundation for the sustainability and commercial success of the Company by stimulating innovative thinking and the continuous improvement of products and processes.

ArcelorMittal believes it possesses leading R&D capabilities among steel producers and is committed to maintaining and extending this advantage by anticipating and responding to major technological, sustainability and social trends, while also making a significant contribution towards achieving the Company’s 10 Sustainable Development Outcomes (see “—Sustainable development” below).

To support this commitment, the Company operates 14 research sites in 9 countries around the world, including a new German based R&D unit which started activities during 2022. In 2022, ArcelorMittal’s R&D expense was $286 million (compared to $270 million and $245 million in 2021 and 2020, respectively). In addition, the Company has capitalized $28 million research and development expenses in 2022 (compared to $41 million in 2021).

Among its R&D initiatives, ArcelorMittal has developed over 15 years of expertise in Life Cycle Assessment ("LCA"), which analyzes the environmental impact of products during their production, use and disposal. In 2022, the Company undertook a total of 62 LCA studies related to steel products and the processes used to produce them, all guided by the relevant standards (ISO 14040-44).

In 2022, ArcelorMittal renewed its support for the CIRAIG International Lifecycle Chair, an international reference center for the lifecycle of products, processes and services, and the world largest research center on the topic, by committing to the new five-year mandate of the Chair.

ArcelorMittal’s R&D strategy focuses on six main pillars:

R&D continually drives innovation that enables the Company’s strategic focus on higher-added-value products. A key focus is products designed to meet the complex and changing needs of the automotive industry.

In the field of products, new ultra-high strength solutions (1500 to 1700MPa) have been industrialized; they offer outstanding combinations of mechanical properties that make them particularly attractive for the fast-growing battery pack market. New AHSS for cold stamping with improved formability has also been industrialized: Fortiform®980GI, DP980 DH GI and CP1000CH GI.

Customers in many sectors share the automotive industry’s demand for innovative products and processes. The Company aims to deliver similar breakthrough advances in these sectors by creating differentiated products and unique engineering solutions, all designed to ensure that steel is the customer's material of choice.

ArcelorMittal is fully involved in the development of solutions dedicated to the Global Energy Transition. The Company has developed and patented corrosion resistant steels for use in wind towers or solar mounting systems. Notably, Magnelis® advanced coating combined with Hyper® high strength steels has become a material of choice for light weight solar structures. Extension of the solutions to heavy coating weights (ZM620) is now fully industrial over a large range of sizes (thin & thick gauges), and heavier weights are in their testing phase with certain customers. These solar steel solutions are being deployed globally in Europe, Americas and Asia. Additionally, the Company is working on the development of solutions suitable for the hydrogen economy, electricity grids, carbon capture, storage & use and bioenergy.

Packaging is, in the Company’s view, another important opportunity. ArcelorMittal continues to respond to the need to meet evolving health and safety regulations, to achieve lightweight, cost-saving design, and to develop new functionalities. Chromium-free passivation for tinplate is now fully industrial with multiple applications and as per customer quality requirements. High strength and thin gauge steels have been developed for Easy Open End, twist-off caps, and aerosol lightweight applications. BPANI (Bisphenol A non-intent) lacquered steel for aerosol valves has been successfully developed and introduced to the market.

ArcelorMittal is committed to sustainable development, continuously striving to reduce greenhouse gases in the construction industry. An important component of this work is to improve products as to enable designers to reduce the tonnage of material required for buildings, while simultaneously ensuring high reuse and recycling at the end-of-life.

The tied-arch bridge, as an example, is a design used extensively in the past, but which has undergone considerable transformation as not to be only functioning as a bridge, but also to be an aesthetic pleasing landmark. Tied-arch bridges are also more cost efficient than other solutions (e.g. cable stayed bridges), when considering the span range . The use of structural heavy shapes as arches for a span range of between 50 and 120 meters has been a recent innovation for tied-arch bridges. The use of high-strength steel for the arches permits significant weight savings, and therefore lower environmental impact.

ArcelorMittal, together with Zeleros, has been testing the performance of steel for hyperloops. A new, unique ultra-high-

In 2022, R&D launched 28 new products and solutions to accelerate sustainable lifestyles, while also progressing further on 16 such product development programs.

In addition, in 2022, R&D launched 13 products and solutions to support sustainable construction, infrastructure and energy generation, while also progressing further on 20 such product development programs.

Construction is one of the key sectors for ArcelorMittal. The Company’s R&D effort is focused on providing higher-added- value products that meet customer needs, including their sustainable development objectives.

Steligence® highlights the innovations the Company’s steel has to offer in the design and performance of a building, and to support its customers in their use of its products. Steligence® adds value through its holistic approach of helping specialists in the architectural and engineering disciplines to meet the increasing demand for sustainability, flexibility, creativity and cost in high-performance building design by harnessing the credentials of steel through its potential for recyclability and the reduction of materials used.

A key concept within Steligence® is to make buildings easier to assemble and dismantle. As a result, buildings become quicker to construct, leading to significant efficiencies and cost savings while also creating the potential for re-use. This reflects ArcelorMittal’s wider interest in modularization and the potential re-use of steel components - a field it is discussing with customers and in its LCA assessments.

Steel can be used to build multi-story residential buildings quickly, economically, and sustainably, as per a recent Steligence® case study. The study evaluated a hypothetical 22-storey residential building within the Greater Toronto and Hamilton area. There, as in other urban centers in Canada, demand for housing outstrips supply and cost exceeds many people’s budgets. The study compared two unique building scenarios: a steel-based design versus concrete. The study evaluated construction time, cost to build the high-rises and

environmental impact. The steel-based design was found to take less time, reduce cost and provide a significantly lower environmental impact.

The creation of unique processes creates value for the Company and its stakeholders by increasingly enabling environmental improvements, including carbon reductions and improvements in air, land and water; promoting process-driven product development and enhancing the performance of operations through cost efficiency and improved product quality.

Process improvements contribute decisively to the future of the Company, both helping to preserve its license to operate and ensuring its financial sustainability through important management gains.

recycles most dust and sludges internally. With the help of an EU-funded project that started in 2020, R&D is working on agglomeration solutions that are expected to enable further use of these materials as alternatives to currently used raw materials.

ArcelorMittal is developing the new valorization routes of the steel by-products (dust, sludges, scale, slags) in the new decarbonization steel making routes, with goals of 100% efficient use of raw materials, zero waste and increased availability of the critical minerals needed for the green transformation.

Other circular economy initiatives include working on the use of mining tailings as a secondary raw material, either by finding marketable solutions or generating valuable products to be used in-house and in construction. Also, developing sound applications for high grade silica tailings produced in Canada and improving the quality of the scrap the Company uses, as well as exploring automated sorting processes for treating scrap.

ArcelorMittal’s large and global footprint will require several decarbonization technologies in the short, medium and long term. R&D's role is to help generate sustainable differential intellectual property solutions in these domains, to accelerate decarbonization while preserving the Company’s product quality and cost competitiveness. In 2022, R&D prioritized the research activities for the development of the H2 DRI-EAF based steel production route, which is the fast track towards decarbonization (first $10 billion investment plan, the "ArcelorMittal Decarbonization Investment Plan"). In parallel, important research for the electrolysis-based steel production (SIDERWIN) and the decarbonization of the blast furnace has been conducted. R&D has also begun improving the decarbonization of the Company's downstream operations.

In addition, in 2022, R&D supported the ArcelorMittal Decarbonization Investment Plan by implementing DRI+EAF in substitution of parts in the Company’s blast furnaces in Europe and Canada. Detailed analysis and assessments of the OEM proposals were performed (including comprehensive numerical modeling and laboratory and pilot trials) for the new direct reduction shaft furnaces to be implemented at various plants in the short term. Initial research dedicated to the quality and melting of hydrogen reduced DRI was also conducted to ascertain the impact of new production conditions on the full production route. Moreover, the Company conducted a complete analysis of the operating conditions, raw materials features and steel processes steps to produce the most challenging steel grades with the DRI-based route, including modeling and pilot trials. Furthermore, as of the end of 2022, the development of advanced expert systems based on proven and new process models and digital tools are progressing and being tested in certain plants.

Global R&D, together with the Chief Technology Officer ("CTO"), are reviewing the concept of blast furnace decarbonization to determine if the hydrogen-based blast furnace can contribute to the Company's overall decarbonization strategy, with key technologies having been identified and a comprehensive development roadmap under discussion as of the end of 2022.

In 2022, R&D developed solutions to reduce natural gas consumption, replacing it with steel making gases. R&D’s 1.2 MW combustion laboratory furnace is now working with process gases from the plant as well as green hydrogen and is testing burners capable of replacing 70-90% of the natural gas with blast furnace gas, thereby reducing nitrogen oxide emissions by roughly 50%. The Company has also tested low-cost solutions for burning 100% hydrogen gas in conventional burners.

been added to GPQS to facilitate the analysis of defects on the whole production line and artificial intelligence ("AI") algorithms have been integrated and are being tested to automate and further improve quality control.

In addition, during 2022 as in the previous year, Global R&D participated in the expansion of a risk assessment for all ArcelorMittal tailings facilities worldwide. ArcelorMittal's dedication to safety and environment is further reinforced with the creation of programs for supporting ArcelorMittal Mining in mine closure strategy.

With respect to the expansion of the Company's mining operations in Liberia, Global R&D has also been critical in providing modifications that allowed higher recovery rates, reduction of tailings volume and keeping the high-grade concentrate. At the same time, Global R&D started developing the dry stacking tailings program for the project, in compliance with the Company's tailings management standard. For more information on environmental impact, delivering energy saving programs and lowering emissions of solids, water and gases, see “—Sustainable development— Climate governance and risk management”.

ArcelorMittal envisages itself as a fully digital enterprise where everything is connected. ArcelorMittal invested early and significantly in automation systems, and for decades the Company has been a pioneer in the introduction and use of artificial neural networks. ArcelorMittal is currently fully committed to a total digital transformation and is progressively becoming a data-driven company, including significant advances in a number of fields and relies on the secure and reliable performance of its digital technology platforms, information technology systems, continuously updating its security measures to avoid data breaches or data theft (see also —Risk factors). The Company is focusing its efforts on:

The Global platforms are a key element both from a technical and organizational standpoint, providing a standard approach to data infrastructure as a platform, where cloud capacity, open source technologies and commercial solutions have been engineered to build a standard distributed data ecosystem. In a company of ArcelorMittal's size, having a common and standard governance is of paramount importance when dealing with distributed and decentralized data.

In its digital strategy, the Company makes use of solutions that are directly acquired in the market (digital commodities), solutions that are co-developed with technology suppliers, and solutions that are fully developed internally to take advantage of the rich knowledge interfaces the Company has (process, product, AI, math optimization). This combination leads to algorithms with performance superiority to what is available in the market for the Company's core business and is thoroughly benchmarked.

The main driver for digitalization at ArcelorMittal is a competitive advantage, with new technologies and especially developing cutting-edge AI and mathematical optimization algorithms.

In 2022, the Company has continued with significant advances aligned with its digital plan and strategy, where it can highlight a few examples:

While the implementation of large-scale digital and industry 4.0 projects is challenging in a company of ArcelorMittal’s size, once implemented these projects bring major benefits and value because of the Company’s scale and complexity. The global standard platforms strategy contributes significantly to this initiative.

ArcelorMittal’s approach is to work with a broad range of entities, thus maximizing the knowledge transference into its capabilities. This has led to the development of new algorithms using internal expert knowledge, cloud and edge capabilities providing an agile and scalable way of solving problems in ways that were not possible before.

using the same atomization process and alloys that will allow customers to pre-qualify products.

R&D, taking advantage of its extensive knowledge of metallurgy of steels, has been working to create a portfolio of unique powders. R&D can support its customers in the right use of the Company's powders at every step of the value chain of additive manufacturing: selecting and customizing material, design of parts and printing optimization.

In parallel to powders, R&D is progressing in the wires AdM domain, highlighting the successful printing of high-quality large parts by DED (Direct Energy Deposition) technology. ArcelorMittal wants to be a leader in both powders and wires supply for AdM.

ArcelorMittal is committed to placing sustainability at the heart of its business, from delivering increasingly low-carbon products, through to leading the steel industry in the challenging transition to a circular and net zero economy. Fundamental to achieving this is the Company’s focus on maintaining good corporate governance in monitoring, managing and improving the Company's sustainability performance. To this end in 2021, as part of its greater focus on sustainability the Board transferred responsibility for oversight of this area to a new, dedicated Board Sustainability Committee, supported by an executive-level Climate Change Committee and Sustainable Development Council.

The Sustainability Committee, chaired by an independent non-executive director, has been designed to oversee the Company’s management approaches to all sustainability matters. It meets quarterly to review health, safety and environmental matters as standing agenda items and discusses specific topics in depth (e.g. climate change, social performance, responsible sourcing etc.) in the intervening periods. It provides its findings and recommendations to the Board.

The purpose of the Sustainable Development Council is to review the Company’s strategy and management approaches on environmental, social and governance ("ESG") matters to position it as a leader that delivers its purpose (‘Smarter steels for people and planet’), values (safety, sustainability, quality and leadership) and strategic priorities. It consists of senior managers from relevant corporate functions and segments and meets on a quarterly basis to review safety, health, environmental, social performance and responsible sourcing matters. It also assesses and discusses stakeholder expectations and business performance to help ArcelorMittal decide which ESG issues are most material. Key issues identified by the Council are raised with the Executive Office and recommended topics are brought forward for discussion and action with the Group Management Committee.

Given the importance and scope of climate change related matters, a dedicated Climate Change Committee ("CCC") has been established to provide specific focus on this issue. The overall mandate of the CCC is to position ArcelorMittal as a global leader on climate change, and to provide guidance that ensures a unified approach across the business’ value chain. The CCC consists of senior managers from relevant corporate functions and segments across the Group. It guides engagement and advocacy with external stakeholders on

climate change and decarbonization and supports the business in understanding the risks and opportunities associated with the transition to a low carbon economy. The CCC meets quarterly. Key issues identified by the Committee are raised with the Executive Office and recommended topics are brought forward for discussion and action with the Group Management Committee.

Please refer to the "Management and employees—Corporate governance" section for further details.

ArcelorMittal’s 10 SD outcomes articulate the priorities the Company believes it needs to pursue if it is to bring optimal long-term value to all its stakeholders and drive its transformation into the steel company of the future. They are aligned with the 17 United Nations Sustainable Development Goals ("SDG"s), widely regarded as the benchmark in global sustainability policy and action.

In addition to the Company's ongoing risk management program ArcelorMittal regularly assesses the issues that are material to its stakeholders and to its business in maintaining a license to operate. In 2021, the Company undertook a double materiality assessment to identify the most material sustainability matters to its stakeholders, business environment and its people and communities. These were grouped into the eight themes and ArcelorMittal’s sustainable development program is based around these topics:

To understand the material issues and their likely impact on the organization and the planet, the Company engages and seeks dialogue at every level with internal and external stakeholders and continuously monitors global sustainability trends commercial challenges and opportunities.

The Company’s commitment to transparency and governance is demonstrated in its regular disclosures.

The Company is committed to applying best practice in corporate governance in its dealings with shareholders and other stakeholders, and with respect to the transparency, balance and quality of disclosure and reporting. This commitment underpins all of ArcelorMittal’s key publications, including the Integrated Annual Reviews, Climate Action Reports and Annual Reports.

Climate Action Reports in particular serve as ArcelorMittal’s response to the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”) as well as the Climate Action 100 Net Zero benchmark, for which the Company is working towards full disclosure. In 2022, the Company has engaged further expert advice to assess the resilience of the business against different transition and physical climate scenarios, so that it can consider the potential financial implications in more detail, inform its strategy and manage its transition and physical climate risk exposure. The first phase of this project has established initial, high-level conclusions in 2022. See more in the section "Climate Change" below.

In 2022, alongside making disclosures to the CDP on climate change and water, and conducting numerous investor and customer surveys, the Company published several country sustainability reports. In addition, the Company published its second Climate Advocacy Alignment Report, with the addendum, which maps the policy positions of the 61 associations of which the Company is a member, against the objectives of the Paris agreement and the five policy priorities ArcelorMittal outlined in the Climate Action Report 2 (and in chapter ‘3. Roadmap to net-zero’ below).

The Company also released its Report on Payments to Governments in Respect of Extractive Activities for the year ended December 31, 2021.

The Company publishes a special disclosure report in compliance with the US Dodd Frank Act Section 1502 and has done work to meet the requirements of the EU's new conflict minerals regulation.

ArcelorMittal is acutely aware that it needs to improve its health and safety performance and is working determinedly on this. Whilst the Company has set out the required standards and targets to which it aspires, it is clear that achieving them will need a much deeper implementation of leadership on the ground, an enhanced focus on risk assessment, performance management, training and mentoring, communication and information flow, as well as a relentless focus on strengthening its safety culture. Although the Company has demonstrated the safety culture capabilities and performance within some parts of the Group, it must focus on getting all units to the highest culture and performance levels. The year 2022 has seen a Company-wide acknowledgement and commitment to put this fully into action.

In 2022, 22 employees lost their lives while working at the Company’s facilities. The LTIFR, defined as the number of injuries per million hours worked that result in employees or contractors taking time off work, was at 0.70 in 2022 and 0.79 in 2021. The table below shows the LTIFR by segment for the years ended December 31, 2022 and 2021:

ArcelorMittal’s Global Health and Safety Council ("GHSC") leads the Company’s safety governance. It was re-launched at the end of 2020 and has been chaired by an Executive Vice President ("EVP") from the Company’s segment with the best safety culture and performance. The GHSC maintains a regular senior-level exchange with all business leaders with rigorous discussion of each segment’s safety challenges, and the sharing of best practice and solutions.

While the Company believes that this activity is valuable, it has further intensified focus during the past year to ensure all necessary measures are taken in responding to the situation. Forensic discussions have taken place in the Executive Office, at the Management Committee, at the full Board of Directors and at the Board Sustainability Committee to map out a clear way forward that will deliver the results the Company wants to see.

This detailed analysis concluded that ArcelorMittal has robust policies and standards in place across the Group, but the extent to which they are rigorously embedded and audited across the business varies from one segment to another, and from one country to the next. While there is undoubtedly a cultural element to this variation, ArcelorMittal is committed to achieving the same standards universally across the Group.

At the corporate level ArcelorMittal has strengthened the global health and safety team with the function now reporting into EVP Business Optimization, who reports to the Group CEO. The current chair of the GHSC and the EVP Business Optimization have worked closely to spearhead a Group-wide, best-in-class initiative that seeks to identify all and any weaknesses that exist around the Company, and developing very clear plans to evolve every plant to the most mature (i.e. interdependent) stage of the Bradley curve, the internationally recognized assessment of corporate safety culture. They have the full support of the executive chairman and CEO to make whatever changes are necessary to succeed.

In addition, the Head of Group Health and Safety has been added to the Group level Management Committee to provide direct professional health and safety expertise to this body and requires the leading health and safety professionals in each segment and unit to be admitted to their respective management committees.

The Company’s health and safety policy, standards and golden rules have been updated and re-launched to coincide with this year's steel industry health and safety day. The policy includes the Company’s commitment to six principles to guide its decision-making and actions:

Safety training has been enhanced with highly experienced external support. All ArcelorMittal employees receive thorough and regular training as a matter of course through one of the Company’s bespoke training programs (e.g. "Take Care" and safety leadership trainings). A complementary program harnessing recognized international safety experts such as dss+ (formerly DuPont Safety Solutions) has now also assessed the effectiveness of leaders, with mandatory coaching programs being provided for those who have not reached the required level, and led the management committee strategic workshop.

The Company has also tightened guidelines for mandatory leadership shop-floor presence during which they must carry out safety layered evaluations. While the Company policy has always specified leaders to regularly spend time on the shop floor, setting out a higher minimum accepted level for senior leaders will reinforce the culture of visible felt leadership.

Reporting of proactive KPIs such as PSIF has also been strengthened. Every segment is required to put in place a quality assessment process for PSIFs. Understanding clearly why PSIFs happen is vitally important to tightening processes, improving behaviors and preventing fatalities.

Widespread use of what is called ‘quarantining’ is also now in place across all operations. Initiated in Brazil, plants are put into quarantine if a seriously unsafe incident takes place, or the plant is deemed to be at risk of a serious incident or fatality. This means management’s shop floor presence is doubled for a determined amount of time depending on the incident.

The Company finds that its assets with the best safety performance utilize quarantining regularly and that it sits at the core of a strong and continuously improving safety culture. For example, a plant in Brazil which has not had a fatality for five years still decided that part of its plant needed to be placed under quarantine because its PSIF led them to have concerns that unless additional action was taken its safety first always culture could be compromised. The Company has seen the same proactive engagement at ArcelorMittal Dofasco in Canada. ArcelorMittal Dofasco has not had a fatality since 2006, but it has recognized that other safety KPIs have been deteriorating and senior leadership has stepped in to reinforce the shop-floor interdependent culture before it slips any further. Meanwhile in Europe, the Fos-sur-Mer site of ArcelorMittal Méditerranée has not had a fatality since 2015. This has been supported by strong management, a quality assessment process for PSIFs and effective implementation of the safety leadership and take care training programs.

This is what the Company expects to be replicated at every single one of the assets. The Company’s corporate health and safety team, in collaboration with the GHSC, is particularly focusing on helping these segments strengthen their culture, performance and results. The Company recognizes that this means bringing in external experts to support specific mandates. It has already engaged specialist safety consultants to advise and partner on dedicated programs to help these assets improve. This encompasses all aspects of building an interdependent safety culture.

ArcelorMittal’s operations in Kazakhstan face particularly significant safety challenges, with 14 of the Group’s fatalities in 2022 occurring in the country. 9 of these fatalities occurred in two accidents – one in steel and one in mining operations. Focused attention is being devoted to address the situation. Intensive safety improvement programs have been put in place with a focus on cultural change, structural integrity of physical assets and operational reliability. Particular attention is being paid to addressing the highest risk activities and identifying evolving hazards, with increased shop-floor audits, leadership presence, training and communication. Strengthened safety organization and support has been put in place, including external assessment and training from leading health and safety consultant dss+ and Abiroy. In addition, 5,797 employees from steel and mining operations participated in the safety leadership training completed in May 2022 and 2,300 employees are being targeted for a "Managing Safely" course, certificated by the UK Institute of Occupational Safety & Health (IOSH).

ArcelorMittal Kazakhstan has been committed to prioritizing safety, including investment in equipment and assets such as sensors, stress measurement, remote mine development, drill rigs, degassing stations, new safer road-headers and mid-seam longwall complex equipment. The structural integrity of the business’ physical assets is being substantially upgraded with repairs to or dismantling of some 609 buildings and chimneys across the steel and coal units, together with wholesale rebuilding of canteens, improvement to sanitary conditions such as showers, drinking water filtration and the installation of circa 390 air conditioning systems.

The Company has also appointed an experienced safety director from Canada, together with an increased specialist workforce for activities such as degassing, mine surveying, geomechanics and geology.

The Ukraine business has similar challenges to those in Kazakhstan, and a similarly comprehensive program of safety improvements has been identified for full implementation as soon as circumstances allow.

The Executive Office ensures that safety performance is reported, reviewed and discussed regularly with the business as a matter of priority. All business area reviews ("BARs"), which are held quarterly, start with a discussion on safety. Furthermore, the segments that are currently below the Group average are being required to implement additional management actions such as external expert assessments and additional reviews at EVP and/or CEO level. Executive compensation linked to safety has also been strengthened. Starting in 2021, the Company increased the proportion of bonuses linked to safety-related KPIs for leaders from 10% to 15%. Since June 2022 the safety KPI for the short-term incentive plan for executives has been changed from lagging LTIFR to leading proactive PSIFs.

Success starts with imagination and belief. Everyone working at ArcelorMittal must be able to see, and believe in, a fatality-free Company. That belief brings commitment - commitment to ensure that what the Company knows is possible, becomes a reality. And after the commitment comes daily constant hard work to ensure all the policies and rules that support consistently satisfactory results are rigorously upheld.

ArcelorMittal also ensures that its HR policies and annual appraisal system reflects the value the Company places on this culture. In 2022, the Company brand was refreshed and safety added as a fourth value - alongside sustainability, quality and leadership. HR systems have been tightened to ensure that each employee’s safety contributions are considered as part of the performance evaluation process and that it will not be possible for people to further progress, even if they have exceptional results in other areas, until their dedication to safety is proven.

During 2022, all of the above has been well communicated across the organization starting with the leadership team. The corporate health and safety team and the business segments know what needs to be done and are working hard to make all the additional changes required with a special focus on the Company’s most struggling assets. ArcelorMittal recognizes that meaningful progress has to be achieved - there is no other option.

Decarbonizing the global economy and adapting to the impacts of climate change is fundamental to a sustainable future for the planet and society. The size of the global challenge presented at the COP27 conference in Egypt in November 2022 has further raised expectations for businesses and governments to demonstrate greater ambition on the transition to net-zero and accelerate action to achieve meaningful progress by the end of

this decade. For the public, and indeed investors, it has now become one of the most pressing issues, with increased scrutiny on how targets will be achieved, how performance will be enhanced and how operational and business resilience will be built.

For ArcelorMittal, climate change presents the challenge, and the opportunity, to carry out a huge transformation on how it operates and to fully integrate climate-related considerations into the way the Company is run, both strategically and operationally.

The business has made significant progress in 2021 and 2022 by developing its low-carbon product portfolio, investing in new decarbonization technologies, setting out new 2030 carbon emissions reduction targets and working on its roadmap to achieve net-zero steelmaking.

The Company’s target is to reduce carbon emissions intensity by 25% globally and by 35% in Europe by 2030. Both targets cover Scopes 1 and 2 for steel and mining per tonne of crude steel.

The 2030 Group carbon emissions intensity reduction targets reflect the unequal pace of change of the world’s decarbonization journey. In Europe and Canada, where supporting policy frameworks are more advanced, the business can be more ambitious. In other regions, the pace of change is likely to be slower as the regulatory system is less evolved. Policymaking has a crucial role to play, and ArcelorMittal will continue to advocate for policies that support the acceleration of this transition.

The Company is adopting a multi-pronged approach to decarbonization, having developed the industry’s broadest and most flexible suite of low-emissions steelmaking technologies and integrating them into two pathways, Innovative-DRI and Smart Carbon. Both these pathways hold strong potential to

deliver carbon-neutral steelmaking. A third pathway – direct electrolysis of iron – is in the research and development phase and showing good potential. The Company has made considerable progress in developing these two more immediately viable routes. Whilst they are not yet commercially competitive, the expectation is that over time these technologies will become more competitive as the cost of carbon increases around the world, and the technologies themselves mature and become more efficient. The Company envisages that this will take at least ten years and in the transition period support will be required, enabling to manage the required capital spend against the longer-term returns. That is why the Company is asking for public funding support for around half of its estimated $10 billion capital expenditure program to achieve its 2030 group target, as well as support for operating costs in the short to medium term.

To set the ArcelorMittal’s target, the Company has made a key set of assumptions:

In 2021, the Company set out its roadmap to net-zero by 2050. The roadmap envisages five key levers that act as stepping-stones towards the 2030 and 2050 goals. These are:

In the course of the coming decades, the steel industry will undergo a transformation of the assets and methods of making steel on a scale not seen for over 100 years. This includes switching iron-making from the traditional Blast Furnace-Basic Oxygen Furnace ("BF-BOF") method to the DRI-EAF approach. It also involves moving iron ore preparation in sinter plants (using heat to form iron ore feed into a porous agglomerate raw material) to DRI-ready pellet plants (iron ore agglomerated into pellets and then indurated using a furnace) which further reduces the carbon footprint. Given the increasing cost of emitting carbon and the requirement to reduce emissions, transitioning to natural gas-based DRI-EAF can be a first step using proven technology before fully moving to green hydrogen, which is not yet available in anywhere near the volumes required due to the current economics and lack of green electricity grid capacity.

The energy required to make steel in future years will undergo a radical transition towards cleaner energy sources and away from just using fossil fuels more efficiently. This will involve shifting to one or a combination of three alternatives: clean energy (in the form of green hydrogen or renewable electricity); decreasing the use of fossil carbon while developing Carbon

Capture & Storage ("CCS") options; and replacing fossil carbon through the use of bio-carbon options.

Natural carbon cycles can include use of sustainable forestry and agriculture residues to produce bioenergy for steelmaking. Equivalent emissions from the use of this bioenergy will be captured by the regrowth of the biomass source used. Synthetic carbon cycles rely on use of waste plastics as an energy source, transforming the carbon in waste gases into equivalent new plastics, and ensuring that no emissions are generated.

In addition to using scrap in the EAF, the business can increase the use of low-quality scrap in the BF-BOF steelmaking process by improving steel scrap sorting and classification, installing scrap pre-melting technology and adjusting the steelmaking process to accommodate scrap. It is expected that scrap availability will increase as the amount of steel in circulation increases, thereby demonstrating the inherent circularity of steel. The acquisition of John Lawrie in Scotland and Alba International Recycling in Germany in 2022; and Riwald Recycling in the Netherlands and Zlomex in Poland in 2023 are good examples of how the Company is working to increase its access to scrap steel to lower its carbon emissions from steelmaking.

Reducing the business’ Scope 2 emissions means mainly focusing on sourcing low-carbon electricity. This will be an increasing challenge as the Company launches projects to transition from BF-BOF technology to scrap and DRI-EAF technology. This will result in electricity becoming a greater part of the energy mix it uses to make steel. The Company plans to look for more and varied opportunities in the renewables sector to provide sufficient access to clean energy at affordable prices, purchase renewable energy certificates and make more use of direct power purchase agreements (PPA) with suppliers from renewables projects. The investment in Greenko in 2022 in India (See "Sustainable development highlights - leading the decarbonization of the steel industry") is an example of how the business can directly ensure increased availability of green electricity.

While ArcelorMittal is committed to achieving net-zero by reducing carbon emissions directly from its operations, there are likely to remain residual emissions for which either there will be no feasible technological solution or the solution involves excessively high economic or social costs. For these residual emissions – currently estimated to be 5-10% of today’s emissions – the Company will buy high-quality offsets or launch projects to generate high-quality carbon credits that would not have happened without its intervention.

Innovation is central to the Group’s success. It places a strong focus on R&D, ensuring it is at the forefront of the evolution of steelmaking processes and products. It is also adopting this approach to decarbonization, having developed the industry’s broadest and most flexible suite of low-emissions steelmaking technologies and integrating them into two pathways: Innovative-DRI and Smart Carbon.

Both pathways are relatively advanced in terms of their technology readiness levels and hold strong potential to deliver low carbon emissions steelmaking. A third pathway – direct electrolysis of iron – is still in the R&D phase but also showing good potential.

ArcelorMittal has made considerable progress in developing the first two more immediately viable routes. Whilst they are not yet commercially competitive, the work up to date has reinforced the business’ confidence in their potential to produce net-zero steel. The intention is that over time these low-carbon technologies will become more competitive as the cost of carbon increases around the world, and the technologies themselves mature and become more efficient.

It is envisaged that this will take at least ten years and in the transition period support will be required to underpin the

development of innovation, enabling the Group to manage the required capital spend against the longer-term returns.

As the availability of renewable and low-carbon electricity increases, the production of affordable, industrial-scale green hydrogen to supply DRI-EAF plants becomes more viable. Reflecting the commitment in Europe and Canada to prioritize green hydrogen production and infrastructure at competitive prices, ArcelorMittal’s approach to date is largely focused on the Innovative DRI pathway. The Company is accelerating its Innovative DRI investment through the following projects, (planned investments in Europe are subject to confirmation by the EU Commission).

ArcelorMittal’s existing DRI plant in Quebec produces 1.7 million tonnes of DRI each year. In 2022, the Company successfully tested the use of green hydrogen in the production of DRI. ArcelorMittal’s ambition is to lead the decarbonization of the

steel industry and this test is an important milestone in the Company’s journey to produce zero carbon emissions steel via the DRI-based steelmaking route using green hydrogen as an input.

With one of the lowest carbon footprints in the world, AMLPC is well-positioned to contribute to the Company’s decarbonization efforts if the right conditions are in place in Quebec. AMLPC’s low-carbon footprint is driven by its EAF-DRI pathway to steelmaking, use of renewable electricity and locally-sourced iron ore and scrap metal.

ArcelorMittal’s Sestao plant is expected to become the world’s first full-scale zero carbon-emissions steel plant thanks to an investment of €1 billion in the Company's plant in Gijón, for the construction of a hydrogen DRI plant and a new hybrid EAF. This investment is expected to deliver a reduction in carbon emissions at the Sestao site of up to 50% within the next five years. Around 1 million tonnes per year of DRI will be transported to Sestao to be used as feedstock for the plant’s two EAFs. As a result, by 2025, the Sestao plant is planned to produce 1.6 million tonnes per year of zero carbon-emissions steel. This would be achieved by increasing the proportion of circular, recycled scrap and using green hydrogen-produced DRI, powering steelmaking assets with renewable electricity, and utilizing carbon-neutral energy inputs, such as sustainable biomass, to replace the remaining use of fossil fuels in the steelmaking process. The Company has signed an agreement with the Spanish government that will underpin the €1 billion required for the transition. On February 17, 2023, the European Commission approved, under EU state aid rules, a €460 million Spanish measure to support ArcelorMittal España in construction of the new DRI installation in Gijón.

The Company has also forged a strategic alliance with HyDeal España to deliver competitive renewable hydrogen to its operations. An industrial joint venture formed by ArcelorMittal, Enagás, Grupo Fertiberia and DH2 Energy, and announced in February 2022, will deliver competitive renewable hydrogen to an industrial complex in Asturias from facilities based in northern Spain. The total installed capacity is expected to reach 9.5 GW of solar power and 7.4 GW of electrolyzers. Production is targeted to start by the end of 2025, to produce about 150,000 tonnes of renewable hydrogen per year from 2026 and reach 330,000 tonnes in 2030. ArcelorMittal and Grupo Fertiberia have announced their intention to purchase, together with other key off-takers, the supply of 6.6 million tonnes of renewable hydrogen over 20 years.

In Germany, ArcelorMittal already operates Europe’s only DRI-EAF plant in Hamburg, where the switch to using hydrogen instead of natural gas in the iron ore reduction process is being prepared. A project is underway to test the ability of hydrogen DRI on an industrial scale, as well as testing carbon-free DRI in the EAF steelmaking process. The objective is to reach industrial commercial maturity of the technology by 2025, initially producing 100,000 tonnes of DRI a year. The German Federal Government has given approval to provide €55 million of funding support towards the plant’s construction.

The technology conversion requires investments which are estimated to be in the range of €1-1.5 billion. The feasibility of the project depends strongly on governmental support and the availability of economically viable energy infrastructure and supply.

To support and enable the availability of hydrogen for steel production, ArcelorMittal is participating in the establishment of regional hydrogen networks. These include North German hydrogen projects: the Clean Hydrogen Coastline to benefit Bremen and the Hydrogen Cluster East Brandenburg to enable hydrogen supply for Eisenhüttenstadt. ArcelorMittal is also collaborating with Shell, Mitsubishi and other cross-industry

companies to form the Hamburg Green Hydrogen Hub, with the goal of generating energy from renewable sources.

The Company and the energy Company RWE have signed a memorandum of understanding to work together to develop, build and operate offshore wind farms and hydrogen facilities that will supply the renewable energy and green hydrogen required to produce low-emissions steel in Germany.

ArcelorMittal is planning to implement €1.7 billion of investments by 2030 to accelerate decarbonization of its steelmaking sites in Fos-sur-Mer and Dunkirk while maintaining equivalent production capacities:

The new industrial facilities would be operational starting in 2027 and will gradually replace 3 out of 5 of ArcelorMittal’s blast furnaces in France by 2030 (2 out of 3 in Dunkirk, 1 out of 2 in Fos). Decarbonizing the Fos-sur-Mer and Dunkirk sites will contribute to maintaining and developing the French steelmaking industry. It will also support the strengthening and development of local ecosystems, generating positive and sustainable dynamics for employment and industrial activity in France, especially in the Dunkirk and Fos-sur-Mer areas. This investment program will be supported by the French Government.

ArcelorMittal and quarried materials group SigmaRoc have entered into a strategic joint venture agreement to create a new company that will produce lime, an essential purifying additive used in steel production as well as numerous other industrial applications. The partners will produce 900,000 tonnes a year of a high-quality material reusing heat recovered from ArcelorMittal

ArcelorMittal Belgium is planning to reduce carbon emissions by 3.9 million tonnes per year by 2030, by building a 2.5 million-tonnes per year DRI plant and EAF facility at its Ghent site. This is a result of a letter of intent agreed between ArcelorMittal and the governments of Belgium and Flanders to invest €1.1 billion in the flagship Ghent plant’s technologies. The DRI plant and EAF facility will operate alongside Ghent’s state-of-the-art blast furnace that is ready to take waste wood and plastic as a substitute for fossil carbon. The combination of the new DRI plant alongside a sustainable, state-of-the-art blast furnace enables the creation of unique synergies in ArcelorMittal Belgium’s roadmap to net zero carbon-emissions steelmaking. The support of both the national and the Flanders governments in this project is crucial, and welcomed, given the significant cost associated with the transition.

Smart Carbon also has the potential to achieve zero-carbon emissions by harnessing bioenergy and CCUS.

These are technologies that the International Energy Agency and the UN Intergovernmental Panel on Climate Change see as critical to achieving net-zero by 2050. Crucially, Smart Carbon gives ArcelorMittal flexibility to adjust its carbon emission reduction plans to local steelmaking conditions.

Carbon neutrality using Smart Carbon techniques can be achieved by relying on the earth’s natural carbon cycle and using bio-waste materials, such as sustainable forestry and agriculture residues, to produce bioenergy for steelmaking. Other biomaterials such as waste plastics can also be used, thereby helping to reduce the world’s plastic waste challenge.

The Company is constructing several commercial-scale projects to test and prove a range of Smart Carbon technologies:

ArcelorMittal is constructing an industrial-scale demonstration plant that converts waste wood into renewable energy through a process called torrefaction. This source of waste wood is considered hazardous material if burnt in an incinerator as it emits harmful gasses. However, in a blast furnace no such pollutants can be formed. At the Ghent plant, two reactors will each produce 40,000 tonnes of bio-coal annually that can be used in the blast furnace as a substitute for coal. Construction of the €55 million project started in 2018: the first reactor is expected to start production in 2023 and the second in 2024.

ArcelorMittal, Mitsubishi Heavy Industries Engineering (MHIENG), a pioneer in carbon capture technology, leading global resources company, BHP, along with Mitsubishi Development Pty Ltd are collaborating on a multi-year trial of MHIENG’s carbon capture technology with ArcelorMittal, following the signing of a funding agreement between the parties. The companies will also conduct a feasibility and design study to support progress to full scale deployment.

Direct electrolysis offers a third potential route for decarbonizing steel. ArcelorMittal’s R&D laboratories in Maizières, France, have developed the first electrolysis cell prototype, proving the viability of production of iron from iron oxides electrolytically. This work has shown that the process has the potential to operate in a flexible start/stop mode.

ArcelorMittal is the lead company along with 11 partners in the Siderwin project, which is building on this technology. With €7 million funding secured from EU Horizon2020 (the EU's funding program for research and innovation in green energy), a three-meter industrial cell has been constructed and various types of iron ore sources (including secondary sources) are tested. Though a small-scale trial at present, with sufficient access to affordable clean power, the successful development of this process will pave the way to a third potential iron ore reduction decarbonization pathway.

Along with steelmaking initiatives, the Company’s mining operations are also developing different solutions to reduce GHG emissions, which represent about 7% of the total carbon intensity of ArcelorMittal (Scope 1 and 2 emissions).

AMMC continues to study and trial low-emissions iron ore pellet production. In 2021, it announced a CAD$205 million investment with support from the Quebec government, enabling AMMC to convert its entire 10 million tonnes per year pellet production to DRI pellets by the end of 2025. It will become one of the world’s largest producers of DRI pellets, the raw material feedstock for iron-making in a DRI furnace. The project includes the implementation of a flotation system that will enable a significant reduction of silica in the iron ore pellets, facilitating the production of a very high-quality pellet. It will also deliver a direct annual carbon emissions reduction of approximately 200,000 tonnes at AMMC’s Port-Cartier pellet plant, equivalent to over 20% of the pellet plant’s total annual carbon emissions. This

reduction in carbon emissions will be achieved through a reduction in the energy required during the pelletizing process.

ArcelorMittal Liberia is exploring opportunities to reduce its GHG emissions by switching from largely diesel power to the new West African ‘green power grid’.

The Company’s progress in driving down emissions enables it to pass the benefit of carbon emission reductions onto customers for the first time via an independently audited certification scheme.

The scheme provides for an independent auditor to verify the metric tonnes of carbon savings achieved, in accordance with the GHG Protocol Project Accounting standard. These savings can then be passed on to customers in the form of verified certificates. Customers can use such certificates to report an equivalent reduction in their Scope 3 emissions.

ArcelorMittal intends to invest in companies developing breakthrough technologies with the potential to support and accelerate the transition to net-zero carbon steelmaking.

Since its launch in March 2021, ArcelorMittal has committed to investments in six companies covering a range of decarbonization technologies – renewable energy, long-term battery storage, carbon capture and re-use, hydrogen electrolysis, nuclear energy and now direct electrolysis. The Fund is also an anchor partner in Breakthrough Energy’s Catalyst program, having committed to investing $100 million over a five-year period.

ArcelorMittal invested an initial $25 million, serving as the lead investor in Form Energy’s $200 million Series D financing round. In October 2022, ArcelorMittal invested a further $17.5 million. Form Energy, which was founded in 2017 is working to accelerate the development of its breakthrough low-cost energy storage technology to enable a reliable, secure, and fully-renewable electric grid year-round. It has recently unveiled a new iron-air battery which is low cost (approximately one-tenth the cost of lithium-ion battery technology), has multi-day reliability (100-hour duration hence overcomes the intermittent nature of renewable energy generation), is scalable; and can be sited anywhere.

ArcelorMittal is an anchor partner in Breakthrough Energy’s Catalyst program and has committed to an equity investment of $100 million over the next five years. Founded by Bill Gates, Breakthrough Energy is committed to scaling the technologies the world needs to reach net-zero emissions by 2050.

Breakthrough Energy’s efforts include investment vehicles, philanthropic programs, policy advocacy, and other initiatives, including Catalyst. Catalyst is a new model for how companies, governments, and private philanthropy can finance, produce, and ensure widespread adoption of next-generation clean

technologies. The program will initially focus on four decarbonization technologies: direct air capture, green hydrogen, long-duration energy storage and sustainable aviation fuel.

In 2021, the Company announced an expansion of its partnership with carbon recycling company, LanzaTech, with a $30 million investment. Using LanzaTech’s gas fermentation technology, which captures carbon-rich waste gases from the steelmaking process and converts them into sustainable fuels and chemicals, this will reduce ArcelorMittal Ghent’s carbon emissions by 125,000 tonnes a year. It will also produce 80 million liters of bioethanol annually, which can be blended with traditional gasoline and used as a low-carbon alternative fuel for the transport sector.

LanzaTech is also developing technology to convert captured emissions into a range of other chemical building blocks to make useful materials, such as textiles, rubber, and packaging.

The Company invested $5 million in H2Pro as part of a $75 million Series B fundraise, with other investors including Temasek, Horizons Ventures, Breakthrough Energy Ventures and Yara. H2Pro is developing a disruptive way of producing hydrogen from water.

Similar to electrolysis, its technology uses electricity to split water into hydrogen and oxygen. Unlike conventional electrolysis however, hydrogen and oxygen are generated separately in different steps – an electrochemical step and a thermally-activated chemical step. It is expected to prove more cost-effective than traditional electrolysis, with capital expenditure costs anticipated to be broadly halved, alongside lower operational costs.

ArcelorMittal invested $25 million in nuclear innovation company TerraPower, as part of an $830 million equity raise, which is the largest private raise among advanced nuclear companies. Its flagship technology Natrium™, featuring a cost-competitive sodium fast reactor combined with a molten salt energy storage system, will provide clean, flexible energy and integrate seamlessly into power grids with high penetrations of renewables. TerraPower is currently building its first Natrium™ reactor, as part of the U.S. Department of Energy’s Advanced Reactor Demonstration Program (ARDP). The facility will feature a 345 MWe sodium fast reactor alongside an energy storage system that can boost output to 500 MWe during peak demand.

ArcelorMittal invested $36 million in Boston Metal in January 2023. 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 SiteGround 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.

In May 2022 ArcelorMittal launched its XCarb™ Accelerator Program aimed at finding the best start-up companies with the brightest ideas focused on breakthrough technologies and the potential to accelerate decarbonization of the steel industry . In addition to financial support, winning applicants will be given access to ArcelorMittal’s advice and expertise in innovation, R&D, technology commercialization and business mentorship.

In line with its intention to lead developments in decarbonization, ArcelorMittal published a concept for a low-carbon emissions steel standard in June 2022 to help incentivize the decarbonization of steelmaking globally and support the creation of market demand for physical steel products which would be classified as lower, and ultimately near-zero, carbon emissions steel. The concept involves:

The Company believes that the creation of clear definitions for low-carbon emissions physical steel is an important component of ‘demand pull’ and ‘supply push’ mechanisms that are required to support the steel industry in its transition to net zero by 2050. Clear definitions will also help inform targeted policy to support the scale-up and commercialization of these near-zero technologies.

At the heart of the concept are three core principles:

The concept is designed to be complementary to methods for rewarding virtual low-carbon steel, at least until significant amounts of physical low-carbon steel are available.

emissions reduction, the Board also decided to link executive remuneration to the achievement of this objective. Since 2021, decarbonization targets are part of the performance criteria for vesting of the performance share units in the long-term incentive plan.

In terms of investment decision-making, each major capital expenditure project proposal is required to demonstrate its carbon impact to the Investment Allocation Committee (“IAC”). The IAC makes all necessary considerations to maximize the business’ chances of achieving its targets while ensuring each project is economically justifiable and earns its cost of capital. It is a crucial part of the Company’s strategy to manage risk and deliver long-term growth.

In 2021, ArcelorMittal reviewed and reported on the Company’s climate risks and opportunities in its second Climate Action Report which is its response to the recommendations of the TCFD. ArcelorMittal is working towards full disclosure in accordance with the TCFD recommendations.

In 2022, the Company has taken further expert advice to assess the resilience of the business against different transition and physical climate scenarios, so that it can consider the potential financial implications in more detail, inform its strategy and manage its transition and physical climate risk exposure. For instance, understanding the probability of extreme weather events or water scarcity is crucial for the sustainability of the business’ operations. The first phase of this project has established initial, high-level, qualitative conclusions in 2022.

The development of climate scenarios is among the 11 recommendations of the TCFD. The purpose of this exercise was to test the resilience of organizations’ preparedness against different climate-related scenarios in terms of identifying physical and transition risks and opportunities and their financial impacts.

In line with the TCFD recommendations, ArcelorMittal has developed a list of four scenarios, including a below 2°C degrees and a 1.5°C degrees. Some of the scenarios selected are externally designed, based on plausible assumptions or TCFD recommendations, and others are customized publicly available scenarios with some improved assumptions for greater alignment with ArcelorMittal’s modelling and market expectations.

Scenario development is a milestone in the alignment of ArcelorMittal’s climate strategy with the TCFD and has paved the way for the identification of climate-related risks and opportunities and sheds light on their implications on the Company.

The finance community is increasing its scrutiny of companies’ carbon emissions reduction commitments and performance, with many investors seeking to align their portfolios with the goals of the Paris Agreement, often using third-party ratings and proxies in order to do so. These include the following:

As a coalition of institutional investors, Climate Action 100+ has developed an approach to assess the carbon performance of companies in hard-to-abate sectors. ArcelorMittal has engaged with the coalition since 2018. In March 2020, Climate Action 100+ released its Net-Zero Benchmark covering not only targets but also strategy and capital allocation plans as well as policy engagement. Over the two cycles of the benchmark published to date, the Company has improved its alignment and is working towards full alignment with the benchmark.

Climate Action 100+ Net-Zero Benchmark published in October 2022, with the Company’s own assessment.     

ResponsibleSteel™ is the steel industry’s first global multi-stakeholder standard and certification initiative. ArcelorMittal is a founding member and has played a pivotal role in establishing it. In 2019, ResponsibleSteel™ published its first certification standard for steelmaking sites based on 12 environmental, social and governance principles. In 2021, ArcelorMittal plants in Belgium, Germany and Luxembourg became the first sites globally to become ResponsibleSteel™ certified. In 2022, the Company also achieved certification at plants in Brazil, France, Spain and Poland . Further sites in Europe, Brazil and NAFTA have commenced the rigorous independent audit process. ArcelorMittal's goal is to see steelmaking sites in 50% of ArcelorMittal operating countries certified by 2025.

The Company was also actively engaged in a ResponsibleSteel™ initiative launched in September 2022, to create a ‘certified steel’ product standard (including responsible

sourcing and GHG emissions requirements) to complement the existing ‘certified site’ standard.

The Company has partnered with SBTi to develop a science-based target setting methodology for steel companies and is a member of the Expert Advisory Group ("EAG"). The aim is to understand and implement the level of climate ambition required for the sector to meet the 1.5°C goal of the Paris Agreement, considering the constrains of its hard-to-abate processes and the different steelmaking routes.

The partnership began in November 2021 led by SBTi, with the Energy Transitions Commission ("ETC") as a technical partner. The development of the guidance started with the analysis of different models and scenarios, mainly IEA NZE and Mission Possible Partnership’s Carbon Cost and Technology Moratorium scenarios, and the allocated budget for the steel sector in each.

The process continued with the incorporation of steel specific issues, such as projected demand by 2050, production routes (primary/secondary) and the technology readiness level and expected availability of the decarbonization options (CCS, hydrogen, etc.). Finally, plausible pathways were incorporated into science-based tools to ensure that all companies are treated fairly and their collective ambition level would allow society to stay within the 1.5 °C carbon budget estimated by UN IPCC.

The draft guidance went through a public consultation process between November 2022 – January 2023 and is expected to be published in the second quarter of 2023.

CCAF aims to define collective agreement on how banks assess steel companies’ decarbonization progress for use by the Net Zero Banking Alliance. ArcelorMittal has liaised with CCAF on certain aspects of the Net Zero Steel Pathway Methodology Project ("NZSPMP") relating to the need to ensure that any Paris Agreement aligned trajectory firstly considers the limits on global scrap supplies and so drives the decarbonization of primary steelmaking; and secondly draws a clear and consistent boundary around the emissions considered.

Carbon Disclosure Project ("CDP") aims to provide investors with a signal of the level of progress a Company has made in its response to climate change and related aspects of sustainable development on water and forestry, by rating a Company based on its response to a detailed survey. The Company received an A- score in the 2022 CDP Climate Change assessment and a B- in the 2022 CDP Water assessment.

ArcelorMittal acknowledges that it must address Scope 3 emissions alongside value chain stakeholders to make significant progress towards net-zero. The Company is working to expand its coverage of and improve the quality of its Scope 3 data, with focus mainly on material upstream categories, with the purpose of increasing the accuracy of its reporting and understanding where the opportunities for emissions reduction are. This involves engaging closely with upstream and downstream supply chain stakeholders and transport networks to work on a comprehensive and aligned approach to carbon emissions across the complete value chain.

Policy has a key supporting role to play in transitioning the global economy to net-zero. Policy is required to address not just the significant capital expenditure needed to transition to the new zero carbon-emissions technologies, but also the considerably higher operating costs associated with these technologies in their early stages of implementation. Policy

instruments such as contracts for difference, used so effectively in enabling the renewable energy industry to become competitive, will play an important role in ensuring a level playing field during the transition period. ArcelorMittal actively and directly engages with policymakers and organizations that advocate for the policies and conditions that will enable steel to accelerate and achieve its net-zero transition globally while remaining competitive. The Company believes that policy instruments need to deliver five market conditions to ensure that low and zero carbon-emissions steelmaking is at least as competitive as higher carbon-emissions steel:

The Company is committed to playing a leading part in the steel industry’s role in decarbonization and clearly this means it needs actively and directly to engage with the rest of the industry, with public organizations, NGOs and policymakers. Standards for low carbon emissions and responsibly sourced steel are vital to ensuring steel is able to fulfil its potential to underpin the transition to a circular low-carbon global economy. Collaboration and partnerships are critical to this process to drive positive change and to enhance understanding of differing perspectives.

The Company joined its peers across the steel sector in the NZSPMP, which published its recommendations in July 2021. This work should accelerate progress not only for the Company but also across the entire sector, by establishing a set of principles that ensure that the carbon emissions and targets of steel companies and the industry are assessed in a like-for-like way.

The Company is also a member of the ETC which developed two 1.5C scenarios for the steel sector. The Tech Moratorium ("TM") scenario approach confines investments to near-zero-emissions technologies from 2030 onwards to reach net zero, assuming steel assets switch to whichever technology offers the lowest TCO at each major investment decision. In this scenario, and in the absence of incentives to accelerate technology adoption in the 2020s, lower-emissions technologies are initially only built where they can compete on cost with the conventional steelmaking process. On the other hand, the Carbon Cost scenario illustrates a more rapid acceleration in the presence of a global carbon price or equivalent. RMI’s Center for Climate Aligned Finance has reflected both the TM scenario and many of the NZSPMP principles in a mechanism which enables the banking sector to assess the alignment of steel companies with the 1.5C expectations for their sector. Beyond these initiatives, ArcelorMittal is actively advocating the climate change regulation agenda in relevant jurisdictions, also focusing on developing significant traction between industry advocacy

platforms and governments in both Europe (for example via Eurofer) and Canada. The Group intends to leverage these experiences to advance its advocacy across other jurisdictions.

In January 2022, ArcelorMittal published its second Climate Advocacy Alignment Report which maps the policy positions of the 61 associations of which the Company is a member, against the objectives of the Paris Agreement and the five policy priorities outlined above. In addition, in January 2023 the Company published the addendum to the Report.

In the report, the Company shares a summary of the results of its assessment and it provides a breakdown by association. Since the publication of the first report in 2020, the Company has seen some significant progress in the positions of some key trade associations, which are detailed in the report. The Company has also strengthened its methodology, which has led to some associations moving from the category of ‘aligned’ to ‘partially aligned’, and from ‘partially aligned’ to ‘misaligned’. The Company continues to engage with associations to drive more alignment with the goals of the Paris Agreement and encourage their proactive contributions to the policy priorities identified.

Below is the Company’s carbon performance in 2021. Performance for 2022 will be published in the Integrated Annual Review in April 2023.

In the mining business, the Company is working in a very similar way with IRMA, the Initiative for Responsible Mining Assurance, to deliver the same credible validation for stakeholders, covering the specific issues for the extractive and natural resource sectors.

Further sites in Europe, Brazil and NAFTA have commenced the audit process. The Company’s short-term goal is to see steelmaking sites in half of ArcelorMittal’s operating countries being certified by 2025.

the business’ major customers, that have also joined the initiative. The Company’s mining operations in Canada, Liberia, Brazil, and Mexico have started the IRMA self-assessment process and are working towards achieving the first level of the certification pathway by end of 2025.

The Company also remains committed to the Mining Association of Canada’s Towards Sustainable Mining ("TSM") initiative at its mines in Canada. ArcelorMittal Mining Canada has implemented TSM protocols since 2004 and is both TSM-assured and five-star rated. The IRMA and TSM initiatives give the business high-quality, rigorous assessment tools that help demonstrate how it is managing social and environmental performance at its mines.

The Company’s commitment to ESG covers the entire steel supply chain. One of the benefits of being a vertically integrated steelmaker is that the Company self supplies around two-thirds of its own iron ore needs – allowing the ability to manage the social and environmental performance at all of its mines.

The business works closely with suppliers of iron ore and other raw materials that it purchases to support the wider adoption of higher sustainability standards. To create a responsible value chain, the Company aims to source raw materials from suppliers

The Company may also conduct site visits to suppliers to identify potential breaches of the Code and agree on a timeline and process for mitigating them. Mitigation actions could include engagement with the supplier to encourage them to commit to certification, sharing support and knowledge to address specific challenges or encouraging the supplier to join a wider initiative if the issue is one that is endemic across the industry.

The Company continues to carry out additional ESG risk mapping and analysis and apply further layers of due diligence based on OECD guidelines where the Code assessments highlight areas of social and environmental concern. The Company develops action plans where needed, and pays particular attention to ‘conflict minerals’, such as tin and tungsten, which are needed in small quantities for effective steelmaking, and engages with suppliers over the ESG concerns identified.

With the new ‘European Due Diligence Act’ and the German ‘Act on Corporate Due Diligence in Supply Chains’’ the business is reviewing its management systems, policies and standards to ensure compliance with these new requirements.

ArcelorMittal takes its wider environmental responsibilities seriously together with its climate change commitments. They are part of a considerate, sustainable and circular approach to business, aiming at mitigating the business’ impacts on nature and the communities within which it operates. The Company aims to be a trusted user of these precious resources to assure its local communities and broader stakeholders that it is a responsible, committed steward of the environment.

The urgent need for decarbonization, together with the huge impact on people’s lives from COVID, have elicited a greater public recognition of the value of the wider environment and biodiversity, their importance to health and well-being, and ultimately the preservation of the planet. This has continued to bring sustainability and the environment right to the heart of the Company, and to reflect this, during 2022 it has continued to strengthen its overall environmental strategy, investment and governance. In 2022, the IAC approved expected capital expenditures totaling $488 million for 30 projects with environmental benefits. More robust measurement and monitoring have been put in place, and the Company is developing comprehensive five-year environmental improvement plans across the business, for all segments and sites, that are integrated into their broader business plans, including detailed time bound targets.

Globally, the regulatory backdrop to environmental compliance in the steel industry is developing rapidly and becoming more stringent. Environmental impacts such as that of air emissions are coming under greater scrutiny as evidenced by the updated air quality guidelines issued by the World Health Organization in September 2021. With this in mind, in 2021, the Company introduced several material changes to enhance its environmental governance. To strengthen Board oversight, increased time is now devoted to environmental matters via the Board Sustainability Committee. At the executive level, the SDC has increased focus on this critical area and can use this information and feedback to guide site-level improvements and make more informed decisions. At the executive team level, the business has strengthened oversight of site-level environmental performance to coordinate group efforts and compliance.

The Company’s environmental experts cover a diverse range of fields and meet on a quarterly basis to share best practice and discuss matters related to environmental governance. Each quarter the network focuses on a particular issue for deeper discussion and analysis.

The revised environmental policy of ArcelorMittal containing the general guidelines decided by the general management which are to govern all environmental aspects of the activities of ArcelorMittal, has been launched and includes the following principles:

This policy should be used as the reference for developing local or site-specific environmental policies for each operating company and its sub-divisions. All actions of all Company operations must respect these policy principles.

The clearest demonstration of the Company’s strengthened environmental commitment is its decision to require that all its steel business units and their individual sites prepare five-year environmental improvement plans. In addition to the compliance and performance monitoring and reporting requirements, ducted dust, SO2, and NOX have been selected initially as priority environmental KPIs. The baseline year is 2018 and the plans are required to include actions, projects, timelines and expected emission reductions to be achieved by 2025 and then subsequently 2030. Their importance is evidenced by the requirement that they should be fully integral to each business’ broader strategic plans.

Environmental Impact Assessments (EIAs), which analyze comprehensively the environmental impacts of a scheme, project or program, are compulsory for all major industrial developments internationally, and ArcelorMittal undertakes them for any proposed new mine or plant, and sees them as an inherent part of their feasibility assessment alongside their financial performance and returns.

ArcelorMittal relies on this process to address relevant needs and issues, including those perceived as being important by our communities and public bodies, and affected groups, among others. For example, the Company has undertaken a number of EIAs for ArcelorMittal Liberia and the expansion project there to evaluate potential environmental impacts and develop mitigation plans.

A Product Environmental Performance is a verified document that communicates transparent and comparable information about the life-cycle environmental impact of products, typically from ‘cradle to grave’. The environmental impacts of products are identified through a Life Cycle Assessment ("LCA") and product environmental performance, for example, Environmental Product Declaration, which seek to summarize and calibrate the environmental impacts incurred in the manufacture of products, during their use and right through to their end of life.

They are equally becoming a necessity for the specification and validation of the Company’s products and services and allowing customers to make informed purchasing decisions and choices.

Including them in the decision-making process of customers, such as those in automotive or construction for example, allows them to meet their decarbonization requirements and reduce their overall environmental footprint.

They drive the business’ product development and allow internal and external stakeholders to identify the areas of an end-to-end product life cycle that bring the greatest potential opportunities for additional value creation, including emissions reduction, cost reduction, improved brand identity and increased market share.

The business is underpinning its environmental (and social) governance through the ResponsibleSteelTM and IRMA certification processes helping its key steel and iron ore mining sites to verify the robustness of their environmental and stakeholder management systems. This approach provides greater assurance to the business’ customers, stakeholders and communities regarding issues that matter to them, both globally and locally. The Company’s short-term goal is to see

steelmaking sites in half of ArcelorMittal’s operating countries being ResponsibleSteelTM certified by 2025.

The Company has also established an Environmental Compliance Methodology that covers the identification, investigation and mitigation of environmental non-compliances and associated risks. It is based on ISO 14001 and covers environmental compliance at all steel and mining operations across the Group, relating to air, water, soil, residues, noise, permits, landfills, monitoring and reporting, among others. At each site, the segment CEO is responsible for ensuring that the site environmental manager or designated person implements the methodology correctly. At the Group level, the corporate environment team handles environmental compliance reporting and is responsible for regularly reviewing and updating the methodology as needed.

As a heavy industrial business, emissions to air remains one of the Company’s most critical issues, especially for the employees and communities in and around its operations. In line with its UN SDG outcome 5, the Company aspires to be ‘a trusted user of air’, which means not only being fully compliant with evolving regulatory standards, but also listening to stakeholders and being proactive in maintaining their trust.

The Company is making emissions to air a major part of its five-year environmental plans for each business unit and site, with detailed planned abatement of ducted dust, SO2 and NOX. A wide range of capital expenditure investments have been committed to in recent years aimed at reducing the business’ environmental emissions. At the same time, the Company is running pilot programs to test the effectiveness of automated monitoring equipment, aimed at giving better oversight of dust emissions and ad hoc emission events, with the intention of rolling this capability out across the priority sites.

Diffuse dust emissions are one of the subjects on which the Group has the most dialogue with local stakeholders and it continues to make significant environmental investments that address air quality.

Air quality improvement projects, examples:

Over the 10 years from 2010-2020, ArcelorMittal invested in an extensive program of more than €100 million to significantly reduce the environmental impacts. A range of environmental protection projects were undertaken, including the desulphurization of coke oven gases, dust removal at the steel plant furnace, and low NOx burners on the slab furnace of the hot strip mill.

As a result, over the 2010-2020 period, emissions from the Fos-sur-Mer site were significantly reduced:

- 45% for sulfur dioxides and nitrogen dioxides,

- 70% for dust,

-79% for benzene and

-85% for dioxins.

In parallel with this €100 million program, the coking plant has also benefited from a complete renovation of its 126 ovens – a €150 million investment which has contributed to resolving different problems, and particularly the non-conformance of the benzene emissions at coke plant level. Since 2019 the coking plant has been in full compliance on this issue.

In keeping with the ambition of ArcelorMittal’s sustainable development outcome 5, to be a ‘trusted user of air, land and water, ArcelorMittal Méditerranée (Fos-Sur-Mer and Saint-Chély d'Apcher) has developed an environmental improvement program that is designed not only to meet the requirements of our permit, but also to respond to the rising expectations from stakeholders. This program will further increase environmental improvements with more than €50 million of investments dedicated to better environmental protection over the 2021-2023 period, with a specific focus on water and dust emissions, particularly in the vicinity of the sinter process.

The project currently underway is the installation of an innovative air emissions filter at the sinter plant, covering an area of 20,000 square meters, which will reduce dust emissions by 40% and overall channeled dust emissions by 15%. The first stage of this €20 million investment commenced commissioning in July 2022.

Other projects are also underway including enhancing the dedusting systems at the sinter plant with the first commissioned early 2023, the construction of a new blast furnace gas storage facility, the commissioning of a new charger at the coke plant, and many other smaller projects.

To reduce the environmental impact of incidental emissions, safety measures are implemented. The Fos-sur-Mer site made an investment of €1.45 million at the coke plant to ensure automatic ignition of 28 safety flares for combustion of coke oven gas in the event of an incidental release, e.g. caused by a power failure.

To create and maintain a close relationship with local stakeholders, site management regularly meets local residents to review results and explain environmental performance and projects implemented.

Between 2011 and 2021, the ArcelorMittal Termirtau (AMT) site has seen an investment of $240 million in environmental projects such as de-dusting filters, the first two phases of the ash pond extension, construction of a new chimney in the coke shop along with battery repairs, BOF technology improvements, a new dust extraction system in the mixer shop to reduce fugitive emissions, and concrete covered areas for temporary residue stock to prevent soil contamination.

The work to modernize AMT continues. In April 2021, the site unveiled its integrated strategy for air and carbon emission reduction. The strategy, which was revised in November 2021, is expected to reduce dust, NOx and SOx as outlined in the 2020 MoU that AMT signed with the government of Kazakhstan. It plans for an approximate 35% reduction of air emissions by 2025 and 52% reduction of air emissions by 2030 from base year of 2018.

The emission reduction strategy is a subset of a larger modernization program that AMT prepared and discussed with the government. Consequently, AMT signed an MoU with the government of Kazakhstan wherein it is planning to invest $3bn in the next decade to upgrade the operation and its value chain. As part of this unprecedented investment, AMT has committed $800 million exclusively for environmental projects in the next 10 years. A 2025 strategy program recently developed by AMT is expected to provide for the reductions in dust, NOx and SOx emissions to exceed those outlined in the MoU.

The reductions will be achieved through several projects, including the application of ArcelorMittal’s innovative hybrid filter technology at the sinter machines (improving both dust and SOx emissions), the upgrade of emission filters for power plant 1, the construction of two new boilers for power plants 1 and 2, a new coke gas cleaning plant, and the replacement of coal with natural gas for our upstream and downstream facilities.

Water is a vital resource and ArcelorMittal aims to be responsible in terms of both the amount the business consumes and the quality of water that its sites discharge into the environment. The Company’s work in this area is aligned with the UN’s SDG 6 (“Clean water and sanitation”), with particular reference to targets 6.3 (water recycling), 6.4 (water efficiency) and 6.5 (water management). Its net water use, defined as the difference between the water it withdraws and what it discharges, is measured, monitored and managed at each site by a dedicated team. It generally treats and recycles the same intake of water repeatedly, losing it only through evaporation.

Unlike carbon emissions, which are a global challenge, water use, availability and quality are more local issues, which require the business to work closely with local municipal, water

authorities and communities. In pursuing these responsibilities, the Company is investing significantly in innovative techniques for water recovery, water treatment, establishing alternative water sources and reduced energy usage.

In the mining operations, some sites recycle as much as 98% of their water. For example, AMMC in Canada is building a water treatment plant HS-2 at Mont-Wright which will treat heavy metals before being released into the natural environment. This project includes installing treatment units to control surface effluents on waste rock piles. The investment for this plant has been just over $52 million and is expected to be operational by the end of the first quarter of 2023.

Newcastle, South Africa is investing $8 million in a storm water treatment project by constructing a 460,000m3 stormwater runoff dam and reducing the plant’s overall water demand. It will include increased capacity stormwater interceptors integrated with existing water treatment facilities. It is due for completion in May 2023.

South-eastern Brazil underwent one of its worst droughts in four decades in 2014. The drop in rainfall saw river levels fall so severely that the government of the state of Espirito Santo declared a state of emergency. In response, ArcelorMittal Brazil developed a water master plan to deal with the water shortage.

ArcelorMittal Tubarão has constructed the largest sea water desalination plant in Brazil. The plant, extending over 6,000m2, provides an alternative source to freshwater from the Santa Maria da Vitória River. The process consists of collecting sea water and transforming it into industrial water using reverse osmosis. The $13.4 million investment covers all the necessary infrastructure to collect and filter sea water, desalinize it, and then store and distribute the end product. The desalination plant consumes around 4,3 kWh/m³ of energy, which is equivalent to 1% of energy generated by ArcelorMittal Tubarão itself. One of the desalination plant’s differentiators is its modular configuration. The first module is able to desalinate 500 m3 per hour of seawater, enough to supply a community of 80,000 people per day, and additional modules may be added in the future.

The Company aims to practice prudent land use management in the environments where it operates and protect local communities from impacts during and following its operations. In 2021 and 2022, the business has increased its efforts regarding tailings dam safety, reclamation and closure planning of mines, and is also focusing attention on reducing the storage of waste around its steel operations, including slag. It is aware that increasing residue storage is creating potential future problems in terms of both space and peripheral impacts, and therefore it is

pursuing ongoing initiatives to minimize reusable and recyclable residues going to landfill and to minimize onsite storage.

Given recent history in the sector, ArcelorMittal has placed a fundamental focus on the safety and impact of its tailings storage and dams across the Group. It has developed a tailings strategy based on the leading industry guidelines from the Mining Association of Canada (MAC), the Canadian Dam Association (CDA) and the Global Industry Standard for Tailings Management (GISTM). The evolving governance model takes into account the principles laid out in the GISTM and aims to ensure that all group tailings facilities are structurally sound and safe, with all efforts directed at minimizing risk, including independent audits benchmarked against these international guidelines.

The Company has 26 tailings storage facilities (TSFs) including conventional, paste, dry-stack and in-pit facilities, of which 15 are active, ten are inactive and one is closed. To ensure the safety of all of them, a formal review process is in place that includes internal and external audits. The internal part is conducted at the corporate level to assess compliance with ArcelorMittal’s tailings management strategy standard. The external audit and review include ‘engineer of record’ performance reviews and annual engineering inspections, in addition to an independent technical review evaluation by a panel of industry specialists. These are benchmarked against international guidelines and are considered best practice.

The Company is also seeking continuous improvement in its tailings management program to reduce exposure to risks associated with conventional TSFs by using best available technologies. This includes reducing the risk of existing conventional operations by promoting reduced moisture disposal methodologies, such as high-density thickened tailings (paste) or filtered tailings where appropriate; and using latest and proven new technologies, such as high-precision radar, InSAR satellite monitoring and remote instrumentation to monitor facilities globally in real time. The business is assessing all its mining operations for transition in line with these principles and developing customized design solutions for non-conventional tailings system management. Tailings thickening steps have been implemented in assets in Mexico, reduced moisture disposal methodologies in Brazil and Canada, and further studies are ongoing across a range of operations.

In compliance with the new resolution set by the Brazilian National Mining Agency ("ANM") in February 2022, the emergency level of the tailings dam located at Serra Azul Mine, in Itatiaiuçu (MG), was changed to level 3. The change was due to adjustments in ANM’s criteria to determine the emergency level of mining dams.

This reclassification does not change the dam’s safety conditions, which remain unchanged since February 2019, when the Emergency Action Plan for Mining Dams ("PAEBM") was established. The structure is not at risk and no additional safety actions or new measures are required. The reclassification therefore takes place in strict compliance with the new legal criterion set by ANM. The dam has been idled since 2012 and the structure is monitored 24/7 with daily updates being sent to ANM. The engineering projects are being developed for the construction of a downstream containment structure and for the dam decommissioning. The construction of the check structure is a legal requirement to start the dam decommissioning process.

Since 2019, safety measures stricter than those required by legislation have been adopted, including the relocation of residents within the Self-Rescue Zone. The process of reparation and compensation of the families affected has been carried out in accordance with the Complementary Agreement Term (CAT) established with the Public Prosecutor’s Office and community.

Circular processes apply to steelmaking itself, where there is significant potential to close resource loops through innovative redeployment of by-products. In line with the Company’s pursuit of circular principles it is searching for innovative uses of slags, dust and sludges. ArcelorMittal’s R&D team is looking at ways to improve slag quality and find new applications for it.

The Company currently recycles most dust and sludges from operations internally. With the help of an EU-funded project that started in 2020, its researchers have been working on agglomeration solutions that will allow the business to use these materials as alternatives to natural resources. Recipes at pilot plant scale to meet blast furnace requirements have been validated and the plan is to conduct industrial trials in a blast furnace to validate the solution in 2023.

ArcelorMittal seeks to protect biodiversity in the environments within which it operates, particularly through partnerships with local environmental organizations and community groups to preserve local flora and fauna. Limiting the area of land used, reducing emissions and ensuring local water supply and quality all contribute to reducing biodiversity impacts, but it is recognized that the business’ involvement and work needs to go beyond the boundaries of its sites and extend into engagement with local communities and livelihoods.

Perhaps the most challenging location for the Company in protecting biodiversity is its Liberian mine in the Nimba region of northern Liberia. Located to the east of its mining operations, the Eastern Nimba mountain range extends from Liberia into Guinea and the Ivory Coast, and is covered in moist, evergreen, montane and secondary forests which are both protected by Strict Nature Reserves such as the East Nimba Nature Reserve (ENNR) in Liberia. Both it and the Western range have global conservation value and are home to a remarkable diversity of species and habitats, many of which are highly threatened. They also include numerous restricted species, several of which occur nowhere else in the world. Forest ecosystems are under severe pressure from extractive industries, as are the livelihoods of rural communities, which depend on bushmeat, charcoal, firewood, medicinal plants and subsistence agriculture.

In 2011, AML launched the ‘BCP’ to compensate for biodiversity impacts from its mining operations that could not be avoided, minimized or restored. Designed to achieve a net gain for biodiversity, the BCP is multidisciplinary in its approach, and founded on the principle of nature-based solutions (NbS). NbS involve working with nature to address societal challenges, providing benefits for both human wellbeing and biodiversity. The BCP scheme seeks to address multiple threats to biodiversity, including underlying drivers of livelihood, insecurity and unsustainable farming practices, and is designed to deliver numerous benefits. The BCP is delivered at landscape scale, focusing on the protection and management of a much larger area than that of the direct footprint of the mining operations and associated infrastructure. The main components include:

AML found that this multifaceted, collaborative approach is the most effective way to create long-term change and protection. So, it is working closely with Liberian government bodies like the Forestry Development Authority (FDA), community forest management organizations, and both international and local NGOs such as Conservation International, Fauna & Floral International, Agricultural Relief Services (ARS), Rural Integrated Centre for Community Empowerment (RICCE) and

Forest Incomes for Environmental Sustainability (FIFES). As a result, there are now conservation agreements and livelihood programs in 13 communities in Nimba County. Currently, there are no revenue streams or cost savings arising directly from the business’ NbS activities; all are funded on balance sheet. Yet long-term financial and funding arrangements are required if activities and outcomes for biodiversity and communities are to outlive the mining operation.

If long-term financial and funding arrangements are implemented, there may be opportunities for forest carbon projects to enable and incentivize forest conservation and restoration and generate revenues from carbon credits. Working in partnership with communities, sharing revenues and benefits from carbon credit issuance, and ensuring local stakeholders are compensated for the impact of reforestation and forest protection, can strengthen the business case for NbS.

Following the memorandum of understanding signed with the University of Monrovia in 2021 regarding collaborating on biodiversity, the College of Agriculture and Forestry of University of Liberia has launched a socio-economic assessment of the AML’s BCP and the lowland/swamp soil assessment study. The study covered ten communities within the AML’s concession. Results of the study will be used to improve conservation agriculture methods.

AML participated in the World Bank pilot study on NbS, led by Fauna and Flora International and Vivid Economics. Drivers for NbS include the mitigation, management and compensation of residual effects of mining in the landscape, as well as induced and cumulative effects; the importance of delivering and securing intended biodiversity outcomes and co-benefits of AML’s BCP beyond mine closure; and delivery of corporate commitments including ArcelorMittal’s Group-wide commitment to net zero (carbon) by 2050. The pilot focused on the potential of AML’s BCP, which was launched in 2011 to compensate for biodiversity impacts resulting from its mining operations that could not be avoided, minimized or restored. The BCP focuses on the protection and management of a much larger area than the direct footprint of the mining operations and associated infrastructure. It was originally designed to achieve a net gain for biodiversity, be multidisciplinary in its approach and deliver multiple benefits. It is therefore an example of an NbS with potential and there is now a need for improved and expanded delivery and the evolution of the program.

All these initiatives are designed to achieve net gain for biodiversity and have the potential to yield benefits that go beyond net gain requirements for specific species and habitat types.

Part of the Company’s license to operate in communities around the world depends on its responsible use of natural resources. There is a diversity of habitats where ArcelorMittal’s operations are located, including rare dune and swale in Indiana, a protected wildlife refuge in and adjacent to the Lázaro Cárdenas facility in Mexico, and designated wetlands in Alabama, to name a few. The Company’s work and responsible stewardship of these sites is critical to the surrounding communities.

In September of 2021, the blazing star borer moth was discovered and photographed for the first time at the ArcelorMittal Research and Development’s piece of pristine prairie in East Chicago, Indiana site. The blazing star borer (Papaipema beeriana) is a rare, prairie dependent moth found in the Midwestern United States. The species are only found in remnant (unplowed) prairie grasslands, which is the most endangered of all ecosystems on the planet. Less than 1% remains, making the seven acres of remnant prairie found at the Research and Development Center a valuable refuge for native plants and animals. It is likely that more prairie-dependent insect species will be found in the future.

Legacy sites are also a focus for responsible stewardship. ArcelorMittal Luxembourg closed its iron ore mines many years ago in the Grand Duchy, but these underground spaces have since been regenerated. A collaboration between the ArcelorMittal Real Estate department and the Nature and Forestry Administration has led to an increase in biodiversity. The presence of the Great Rhinolophus bat, an extremely rare species in Luxembourg and protected at national and European level, has been observed at the Giele Botter former mine site, which is also a Natura 2000 classified area.

ArcelorMittal BioFlorestas produces and distributes charcoal from renewable eucalyptus forests. Based in the state of Minas Gerais, covering 16 municipalities, and distributed in five administrative regions, it has an area of 100,000 hectares of planted eucalyptus forests and 40,000 hectares of permanent preservation and legal reserve. It is a leader in the adoption of sustainable management models focused on socio-environmental responsibility and has an effective presence in the communities where it operates. BioFlorestas is certified by international standards such as the FSC (Forest Stewardship Council) for planting, forestry development, harvesting and charcoal production. Its Forestry Research and Improvement Center includes a study of forest genetic improvement with the objective of obtaining genetically superior seeds, pollens and grafts.

ArcelorMittal plays an important, often vital, role in the local communities around its operations. As a group it is committed to making a positive contribution by creating economic and social value, through employment, procurement, taxation, sustainable development initiatives, stewardship of the environment and respect for human rights. The business wants its employees, their families and local communities to thrive, and in order to achieve this, it is committed to engaging, listening and responding with a constructive partnership approach.

In this digital age the Company is under ever greater scrutiny in a way that has previously not been possible. Communities are better connected, and their expectations, together with those of wider stakeholders, are rising, such that the business must engage more proactively to demonstrate the value it creates and earn its trust and license to operate every day. This means having open, two-way dialogue about challenges and concerns, and discussing ways to respond balancing the financial demands of business with the building of social capital.

The Company’s community engagement work is driven largely by local community relations teams, which are best placed to understand the needs of those who live near its operations.

To better understand the key issues that should drive the Company’s engagement, the Company undertook a stakeholder double materiality assessment during 2021, which included social and community criteria that influence the business’ license to operate. Read more in the "Sustainable Development governance" section above.

The Group continues to review and update its policies to ensure that they are fully aligned with good international industry practice, and that sites are well prepared to go through the certification process.

An additional benefit of the whole process was that it fostered the involvement of the business’ management and employees towards the site’s broader sustainability plans and targets.

As a result of decarbonization, the steel industry will undergo a transformation over the next two decades unparalleled since the 19th century, with many aspects of industrial activity along the value chain significantly changing. The need to understand and

address the social impacts of these changes was included in the text of the Paris Agreement at COP21 in 2015 and by the declaration on the Just Transition signed by 40 nations at the UK Climate Change Conference in Glasgow in 2021 (COP 26).

A Just Transition aims at ensuring environmental sustainability together with safe, decent, inclusive work and quality of life for all. Companies are expected to play a key role by holding social dialogue with key stakeholders (e.g. workers, customers, suppliers, communities, government and investors etc.) and setting clear, time-bound and company-wide commitments and action plans for achieving this transition in a responsible and caring manner. For ArcelorMittal it means that the business needs to explore the social implications of the transition by mapping the potential social impacts and requirements, such as skills, not only in its own operations, but also in the transformed supply chains. This should also help the business prepare for the required policy discussions with governments and other stakeholders on what is needed to decarbonize successfully.

As the Company plans for the transition of each of its steelmaking sites, it is developing a Just Transition framework aligned with Paris Agreement and adhering to International Labour Organisation Just Transition Guidelines and other mandatory disclosure frameworks (i.e., Climate Action 100+, ResponsibleSteel, IRMA, World Benchmarking Alliance, forthcoming EU CSRD). The framework sets out:

As part of its ongoing engagement, the Company is increasingly also accounting for the impact of its products on communities. For many years, it has partnered with the Product Social Impact Assessment Association to integrate community concerns into future product plans. This work has included four stakeholder groups – workers, local communities, users and smallholders – and assesses human rights, discrimination, benefit of products and other social topics.

The concerns felt by communities around the ArcelorMittal operations can be very specific to their locality, and range across employment, skills, social development, human rights, health, safety and the environment. The Company’s community outreach work is driven largely by local teams, which are best

placed to understand the needs of those who live near its operations.

Since 2017, the Group’s Vocational Training Centre in Liberia has helped local young people to develop vocational skills to provide them with opportunities that otherwise they would not have.

In 2021-2022, 96 apprentices graduated from the three-year residential program.

The Company also launched a training and development program for high-potential Liberian employees who will gain work experience and knowledge in ArcelorMittal Mining operations globally. The employees will receive advanced training in the fields of mining production, operation optimization, plant maintenance, planning and execution, plant electrical operation systems, and electrical maintenance.

Alongside responding to communities’ needs and concerns, the Company’s community investment strategy focuses on developing skills in science, technology, engineering and mathematics (“STEM"). This reflects the important role that scientists and engineers will play in building a sustainable future for society at large, the steel industry and the Company. The strategy is delivered in many ways: from providing teaching aids and technological support, to inviting students to steel plants, and developing long-term partnerships with leading academic organizations around the world.

In many countries where the Company operates, there is a substantial gap between training in Science, Technology, Engineering and Mathematics (STEM) disciplines and the demand from companies for STEM trained graduates.

While the percentage of STEM profiles required by industry continues to grow strongly, the number of enrollments in technical or scientific careers has reduced. As the steel industry becomes more technical, this gap is expected to grow. The new wave of skills required spans fields such as life cycle analysis, robotics, data analytics, nanotechnologies, circular economy, and 3D metallurgy, all of which are also rapidly evolving.

As an example, to address these gaps and create a talented pool of scientists and engineers who will play a critical role in building a sustainable future for society, ArcelorMittal Spain has invested 45% of its total budget in community investments dedicated to strengthening STEM training for students. This involves a number of initiatives:

The gap between STEM graduates and industry demand is especially pronounced among the female population with enrollment for technical careers decreasing by 40% among women. The incorporation of young people, and especially women, to this field of study is a priority to successfully accompany the digital transformation and reduce the gap between STEM training and professional demand.

In Kazakhstan, in 2021, as part of the STEM corporate responsibility program, 899 students completed an industrial and undergraduate internship in the Steel Division, 426 students in the Coal Division and 168 students in the Iron Ore Division. The Company regularly takes part in the Foundation Boards of regional colleges to provide cooperation and support. Last year, the company completed a Mutual Cooperation Memorandum with Karaganda Technical University NJSC and Karaganda Industrial University NJSC, covering the training of competitive specialists, retraining, advanced training, research activities, professional certification and certification of personnel in the mining and steel making industries.

Also, within the framework of cooperation with educational institutions and training of qualified personnel, the dual training initiative was continued for college students at the following establishments: Shakhtinsk Technological College MSOPE, Karaganda Higher Polytechnic College MSOPE, Lisakovsky Technical College MSOPE, Karazhal Mining and Technical College MPI, Stepnogorsk Mining Engineering College MSOPE, Boarding School-College MPI, and Temirtau Higher Polytechnic College MSOPE. Last year, more than 250 dual study agreements were concluded for groups of students in various specialties.

The people of the Ukraine have continued to acutely suffer from the violence, deprivation, fear and uncertainty created by the war that has been inflicted on them since February 2022.

Millions of citizens have fled away from the war zones, seeking help and support in neighboring countries. Amongst these are hundreds of ArcelorMittal Ukraine colleagues or their families.

Many of these refugees have ended up in make-shift camps in the neighboring countries, or they were offered temporary residence by locals. The Company and Board are grateful to ArcelorMittal Poland colleagues who immediately made themselves available to coordinate the arrival of their Ukrainian colleagues, showing great compassion, solidarity and humanity.

Early in the war, ArcelorMittal launched an urgent appeal to colleagues from across Europe to host Company refugees where possible, supported by funding and logistical assistance from the Group. A matched charitable funding program, through which every donation by an ArcelorMittal employee, was equally matched by the Company. The funds raised have been employed to support NGO’s in the region in scaling up efforts to reach vulnerable children and families affected by the conflict, with essential services including health, education, protection, water and sanitation.

The Board and management are deeply concerned about the ongoing situation in the country and will endeavor to support its people and local communities affected in whatever way it can.

Information regarding segment sales by geographic area and sales by type of products can be found in note 3 to ArcelorMittal’s consolidated financial statements.

ArcelorMittal has a high degree of product diversification relative to other steel companies. Its plants manufacture a broad range of finished and semi-finished steel products with different specifications, including many complex and highly technical and sophisticated products that it sells to demanding customers for use in high-end applications.

ArcelorMittal’s principal steel products include:

Historically, primary steel producers have been divided into “integrated” and “mini-mill” producers. Over the past few decades, a third type of steel producer has emerged that combines the strengths of both the integrated and the mini-mill processes. These producers are referred to as “integrated mini-mill producers”.

In integrated steel production, coal is converted to coke in a coke oven, and then combined in a blast furnace with iron ore and fluxes to produce hot metal. This is then combined with scrap in a converter, which is mainly a basic oxygen, to produce raw or liquid steel. Once produced, the liquid steel is metallurgically refined and then transported to a continuous caster for casting into a slab, bloom or billet or cast directly as ingots. The cast steel is then further shaped or rolled into its final form. Various finishing or coating processes may follow this casting and rolling. Recent modernization efforts by integrated steel producers have focused on cutting costs through eliminating unnecessary production steps, reducing manning levels through automation, and decreasing waste generation. Integrated mills are substantially dependent upon iron ore and

coking coal which, due to supply and demand imbalances, shortening of contract durations and the linkage between contract prices and spot prices, have been characterized by price volatility in recent years.

A mini-mill employs an electric arc furnace to directly melt scrap and/or scrap substitutes such as direct reduced iron, thus entirely replacing all of the steps up to and including the energy-intensive blast furnace. A mini-mill incorporates the melt shop, ladle metallurgical station, casting, and rolling into a unified continuous flow. Mini-mills are generally characterized by lower costs of production and higher productivity than integrated steel-makers. These attributes are due in part to the lower capital costs and lower operating costs resulting from the streamlined melting process and the more efficient plant layouts of mini-mills and lower manpower. The quality of steel produced by mini-mills is primarily limited by the quality of the metallic raw materials used in liquid steel-making, which in turn is affected by the limited availability of high-quality scrap or virgin ore-based metallics for use in the electric arc furnaces. Mini-mills are substantially dependent on scrap, which has been characterized by price volatility in recent years, and the cost of electricity.

Integrated mini-mills are mini-mills that produce their own metallic raw materials consisting of high-quality scrap substitutes, such as direct reduced iron. Unlike most mini-mills, integrated mini-mills are able to produce steel with the quality of an integrated producer, since scrap substitutes, such as direct reduced iron, are derived from virgin iron ore, which has fewer impurities. The internal production of scrap substitutes as the primary metallic feedstock provides integrated mini-mills with a competitive advantage over traditional scrap-based mini-mills by insulating the integrated mini-mills from their dependence on scrap, which continues to be subject to price volatility. The internal production of metallic feedstock also enables integrated mini-mills to reduce handling and transportation costs. The high percentage use of scrap substitutes such as direct reduced iron also allows the integrated mini-mills to take advantage of periods of low scrap prices by procuring a wide variety of lower-cost scrap grades, which can be blended with the higher-purity direct reduced iron charge. Integrated mini-mills are substantially dependent upon iron ore which, due to supply and demand imbalances, shortening of contract durations and the linkage between contract prices and spot prices, have been characterized by price volatility in recent years. In addition, because the production of direct reduced iron involves the use of significant amounts of natural gas, integrated mini-mills are more sensitive to the price of natural gas also than are mini-mills using scrap.

Steel-makers primarily produce two types of steel products: flat products and long products. Flat products, such as sheet or plate, are produced from slabs. Long products, such as bars, rods and structural shapes, are rolled from blooms and/or billets.

ArcelorMittal’s principal mining products for steel operations include iron ore and metallurgical coal.

ArcelorMittal’s mining and raw materials supply strategy consists of:

ArcelorMittal’s priority is to optimize output and production from its existing sources focused mainly on iron ore. Iron ore and metallurgical coal are its two most important inputs in the iron-making process.

ArcelorMittal is a party to contracts with other mining companies that provide long-term, stable sources of raw materials. The Company's largest iron ore supply contracts with Vale were renewed in March 2023 for the unit in Brazil for the period 2022-2024, while for other units a renewal process is currently ongoing for the same period. ArcelorMittal's principal international iron ore suppliers include Vale in Brazil, Anglo-American (Sishen in South Africa and Minas Rio in Brazil), Luossavaara-Kirunavaara AB in Sweden, IOC (Rio Tinto Ltd.) and Baffinland Iron Mines Corporation ("Baffinland") in Canada. ArcelorMittal’s principal coal suppliers include the BHP Billiton Mitsubishi Alliance (“BMA”), Rio Tinto, Anglo Coal, Glencore in Australia, Contura and Warrior in the United States, Teck Coal in Canada, and JSW in Poland.

ArcelorMittal believes that its portfolio of mining assets and long-term supply contracts can play an important role in preventing disruptions in the production process. (see “Operating and financial review—Key factors affecting results of operations—Raw materials”).

ArcelorMittal sources significant portions of its iron ore needs from its own mines in Kazakhstan, Ukraine, Bosnia, Canada, Mexico, Liberia and Brazil. Several of ArcelorMittal’s steel plants also have in place off-take arrangements with suppliers located near its production facilities.

For further information on Mining segment iron ore production, see “Operating and financial review—Operating results”. For further information on each of ArcelorMittal’s principal iron ore mining operations including total mining production of iron ore and coal, see “Properties and capital expenditures—Property, plant and equipment” and "Properties and capital expenditures—Property, plant and equipment— Reserves and resources (iron ore and coal)".

As with iron ore, ArcelorMittal sources a percentage of its metallurgical coal from its own coal mines in Kazakhstan. The Company’s mines in Kazakhstan supply substantially all of its requirements for its steelmaking operations at ArcelorMittal Temirtau.

For further information on metallurgical coal mining production, see "—Property, plant and equipment— Reserves and resources (iron ore and coal)".

ArcelorMittal procures the majority of its scrap requirements locally and regionally, optimizing transport costs. Typically, scrap purchases are made in the spot market on a monthly/weekly basis or with short-term contracts.

ArcelorMittal purchases its requirements of bulk and noble alloys from a number of global, regional and local suppliers on contracts that are linked to generally-accepted indices or negotiated on a quarterly basis.

The majority of the Company’s base metal needs, including zinc, tin, aluminum and nickel are purchased under annual volume contracts. Pricing is based on the market-accepted indices. Material is sourced from both local and global producers.

ArcelorMittal generally procures its electricity through tariff-based systems in regulated areas such as parts of the United States and South Africa, through direct access to markets in most of its European mills or through bilateral contracts elsewhere. The duration of these contracts varies significantly depending on the area and type of arrangement.

For integrated steel mills, plant off-gases from various process steps are utilized to generate a significant portion of the plant’s electricity requirements and lower the purchase volumes from the grid. This is either produced by the plant itself or with a partner in the form of a co-generation contract.

ArcelorMittal procures much of its natural gas requirements for its Canadian and Mexican operations from the natural gas spot market or through short-term contracts entered into with local suppliers, with prices fixed either by contract or tariff-based spot market prices. For its European and Ukrainian operations, with a contractual mix of “all-in” bilateral supply and direct access to the market, ArcelorMittal sources its natural gas requirements under the prevailing mix of oil-based pricing systems or European short term/spot-indexed supply contracts. The remainder of ArcelorMittal’s natural gas consumption is generally sourced from regulated markets.

Most of ArcelorMittal’s industrial gas requirements are produced and supplied under long-term contracts with various suppliers in different geographical regions.

ArcelorMittal has its own coke-making facilities at most of its integrated mill sites, including in Bosnia, Canada, Mexico, Brazil, Spain, France, Germany, Belgium, Poland, Kazakhstan, South Africa and Ukraine. While ArcelorMittal meets most of its own coke requirements, certain of ArcelorMittal’s operating subsidiaries buy coke from mostly domestic or regional sources to optimize cost savings from transport efficiencies, and certain of its subsidiaries occasionally sell excess coke at market prices to third parties. The remainder of the spot purchases of coke are sourced from China, the United States and Colombia.

ArcelorMittal Shipping ("AM Shipping") provides ocean transportation solutions to ArcelorMittal’s manufacturing subsidiaries and affiliates. AM Shipping determines cost-efficient and timely approaches for the transport of raw materials, such as iron ore, coal, coke and scrap, and semi-finished and finished products. AM Shipping is also responsible for providing shipping services to the Company’s sales organizations. It provides complete logistics solutions from plants to customer locations using various modes of transport.

In 2022, AM Shipping arranged transportation for approximately 49.19 million tonnes of raw materials and about 5.25 million tonnes of finished products. The key objectives of AM Shipping are to ensure cost-effective and timely shipping services to all units. AM Shipping acts as the coordinator for Global Chartering Ltd., the Company's joint venture with DryLog Ltd., a Monaco based shipping company.

ArcelorMittal has implemented a global procurement process for its major procurement requirements, including raw materials, capital expenditure items, energy and shipping. ArcelorMittal’s centralized procurement teams also provide services such as

optimization of contracts and the supply base, logistics and optimizing different qualities of materials suitable for different plants and low cost sourcing.

By engaging in these processes, ArcelorMittal seeks to benefit from economies of scale in a number of ways, including by establishing long-term relationships with suppliers that sometimes allow for advantageous input pricing, pooling its knowledge of the market fundamentals and drivers for inputs and deploying specialized technical knowledge. This enables ArcelorMittal to achieve a balanced supply portfolio in terms of diversification of sourcing risk in conjunction with the ability to benefit from a number of its own raw materials sources.

ArcelorMittal has institutionalized the “total cost of ownership” methodology as its way of conducting its procurement activities across the Group. This methodology focuses on the total cost of ownership for decision making, with the goal of lowering the total cost of production through minimization of waste, improved input material recovery rates and higher rates of recycling.

In 2022, ArcelorMittal sold 55.9 million tonnes of steel products.

The majority of steel sales from ArcelorMittal are destined for domestic markets. For these domestic markets, sales are usually approached as a decentralized activity that is managed either at the business unit or at the production unit level. For certain specific markets, such as automotive, there is a global approach offering similar products manufactured in different production units around the world. In instances where production facilities are in relatively close proximity to one another, and where the market requirements are similar, the sales function is aggregated to serve a number of production units. In the EU and in South America, ArcelorMittal owns a large number of service and distribution centers. Depending on the level of complexity of the product, or the level of service required by the customer, the service center operations form an integral part of the supply chain to ArcelorMittal’s customers. Distribution centers provide access to ArcelorMittal’s products to smaller customers that cannot or do not want to buy directly from the operating facility.

The Group prefers to sell exports through its international network of sales agencies to ensure that all ArcelorMittal products are presented to the market in a cost-efficient and coordinated manner.

Sales are executed at the local level, but are conducted in accordance with the Group’s sales and marketing and code of conduct policies.

For some global industries with customers in more than one of the geographical areas that ArcelorMittal serves, the Company has established customized sales and service functions. This is particularly the case for the automotive industry. Sales through this channel are coordinated at the Group level with respect to contract, price and payment conditions.

Marketing follows the sales activity very closely and is by preference executed at the local level. In practice, this leads to a focus on regional marketing competencies, particularly where there are similarities among regional markets in close geographical proximity. Local marketing provides guidance to sales on forecasting and pricing. At the global level, the objective is to share marketing intelligence with a view towards identifying new opportunities, either in new products or applications, new product requirements or new geographical demand. Where a new product application is involved, the in-house research and development unit of ArcelorMittal is involved in developing the appropriate products.

An important part of the marketing function at ArcelorMittal is to develop short-range outlooks that provide future perspectives on the state of market demand and supply. These outlooks are shared with the sales team in the process of finalizing the sales strategy for the immediate future and with senior management when market conditions call for production adjustments.

Globally, sales and marketing activities are coordinated to ensure a harmonized approach to the market. The objective is to provide similar service experiences to all customers of ArcelorMittal in each market.

ArcelorMittal owns and maintains a patent portfolio covering processes and steel products, including uses and applications that it creates, develops and implements in territories throughout the world. Such patents and inventions primarily relate to steel solutions with new or enhanced properties, as well as new technologies that generate greater cost-efficiencies.

ArcelorMittal also owns trademarks, both registered and unregistered, relating to the names and logos of its companies and the brands of its products. ArcelorMittal has policies and systems in place to monitor and protect the confidentiality of its know-how and proprietary information. The Company applies a general policy for patenting selected new inventions, and its committees organize an annual patent portfolio screening by individuals from the Company’s R&D and business sectors in order to optimize the global efficiency of the Company’s patent portfolio. The Company’s patent portfolio includes more than 11,900 patents and patent applications for more than 770 patent families, with 79 inventions newly-protected in 2022. Because of this constant innovation, the Company does not expect the

lapse of patents that protect older technology to materially affect current revenue.

In addition to its patent portfolio, ArcelorMittal is constantly developing technical know-how and other unpatented proprietary information related to design, production process, decarbonization solutions for steel production and use of high quality steel products, leading to development of new applications or to improvement of steel solutions proposed to its customers, such as the ones aiming at weight reduction for vehicles. ArcelorMittal has also been granted licenses for technologies developed by third parties in order to allow it to propose comprehensive steel solutions to customers. ArcelorMittal is not aware of any pending lawsuits alleging infringement of others’ intellectual property rights that could materially harm its business.

ArcelorMittal’s operations are subject to various regulatory regimes in the regions in which it conducts its operations. The following is an overview of the principal features of the Company's regulatory regimes, as of December 31, 2022, that affect or are likely to affect the Company's operations.

See "Introduction—Risk factors” and note 9.3 to ArcelorMittal’s consolidated financial statements.

ArcelorMittal’s operations are subject to a broad range of laws, directives and regulations relating to air emissions, surface and groundwater protection, wastewater storage, treatment and discharges, the use and handling of hazardous or toxic materials, waste management, recycling, treatment and disposal practices, the remediation of environmental contamination, the protection of soil, biodiversity and ecosystems or rehabilitation (including in mining).

As environmental laws and regulations in the European Union (“EU”) stemming from the Green Deal and other jurisdictions continue to become more stringent, ArcelorMittal expects to spend substantial resources including operating and capital expenditures to achieve or maintain ongoing compliance. Further details regarding specific environmental proceedings involving ArcelorMittal, including provisions to cover environmental remedial activities and liabilities, decommissioning and asset retirement obligations are described in note 9.1 to ArcelorMittal’s consolidated financial statements.

ArcelorMittal anticipates that its expenditures with respect to environmental matters in the EU over the next several years will relate primarily to installations of additional air emission controls, to requirements imposed in the course of renewal of permits and authorizations, including those pursuant to ongoing implementation and upcoming revision of the Directive 2010/75/

EU, on industrial emissions (“Industrial Emissions Directive” or “IED”), respecting achievement amongst others of dust, Nitrogen Oxide (“NOx”) and Sulfur Dioxide (“SO2”) and to address GHG issues, including the reduction of emissions and purchase of allowances.

As the central directive to tackle industrial pollution, the IED represents a significant pillar of the European Green Deal. Policy options to enhance its performance may include, for example, improving the Best Available Techniques (“BAT”) reference documents ("BREF") elaboration process or furthering the contribution to circular economy objectives.

On April 5, 2022, the European Commission adopted proposals for revised EU measures to address pollution from large industrial installations. These proposals concern revision of the IED and revision of the European Pollutant Release and Transfer Register (“E-PRTR”) regulation to create the Industrial Emissions Portal. In line with the European Green Deal, the overall aim of these proposals is to progress towards the EU’s zero pollution ambition for a toxic-free environment and to support climate, energy, and circular economy policies. More specifically, the new rules aim to, among other things: (1) ensure full and consistent implementation of the IED across Member States, with tighter permit controls on air and water emissions; (2) increase investment in new, cleaner technologies taking into account energy use, resource efficiency and water reuse whilst avoiding lock-in to obsolete technologies; (3) support more sustainable growth of sectors that are key to building a clean, low carbon and circular economy; (4) integrate the previously separate requirements for depollution and decarbonization so that future pollution control investments take better account of GHG emissions, resource efficiency and water reuse; and (5) enhance data transparency and public access to environmental information by making permit summaries available online and providing more opportunities for public participation in the setting and review of permits.

The European Parliament Committee on Environment, Public Health and Food Safety (“ENVI”) published its draft report in November 2022. Some relevant points under discussion in the amendment process are the penalties and the limitation periods; the concept of "malicious litigation"; measures to dissuade from filing lawsuits for the purpose of bringing companies into dispute; and the reversal of the burden of proof for compensation claims by individuals caused by pollution. ENVI’s voting is expected in April 2023 and the European Parliament is expected to vote on them by mid-2023.

On October 26, 2022, the Commission adopted a proposal for the revision of the Ambient Air Quality Directives that will set interim 2030 EU air quality standards, aligned more closely with World Health Organization guidelines, while putting the EU on a trajectory to achieve zero pollution for air at the latest by 2050.

While these Directives do not directly apply to ArcelorMittal's operations, they can have an indirect impact since areas where the new stricter air quality standards are not achieved might require different contributors, such as industry, to decrease their emissions. On the same date, the European Commission proposed to update the lists of water pollutants to be more strictly controlled in surface waters and groundwater. Similar to air, although such lists do not directly apply to our operations, ArcelorMittal's discharges to natural water bodies might face further restrictions.

Regarding due diligence in the supply chain, two different regulations will impact ArcelorMittal as described below.

First, in Germany, the Lieferkettensorgfaltspflichtengesetz (“German Supply Chain Act”) intends to improve international human rights by defining requirements for companies for the responsible supply chain management. This guidance provides a legal framework for fulfilling Human Rights due diligence obligations and requires that German companies take responsibility for their supply chains and motivate their contract partners abroad to protect internationally recognized human rights and environmental standards. ArcelorMittal has prepared to fully comply with this new regulation, which came into force in January 2023.

Second, in December 2022, the European Council adopted its negotiating position and general approach on the European Commission’s proposal for a Directive on Corporate Sustainability Due Diligence (“CSDD”). One of its main goals is to set out a framework to foster the contribution of businesses operating in the single market to respect human rights and the environment in their operations and through their value chains by identifying, preventing, mitigating, and accounting for their adverse human rights, and environmental impacts, and having adequate governance, management systems, and measures in place to this end. The proposal aims to foster sustainable and responsible corporate behavior throughout global value chains. Companies will be required to identify and, where necessary, prevent, end, or mitigate adverse impacts of their activities on human rights and the environment.

ArcelorMittal is preparing itself by putting policies in place and updating its current policies; assessing risks by identifying them with regards to negative impacts on human rights within its value chain; dealing with negative impacts by taking preventive measures to minimize and remedy potential impacts; follow up on the progress; communicating the results, and setting up appropriate complaint mechanisms.

The European Council’s initial negotiating position will form the basis for upcoming negotiations with the European Parliament on the final terms of the CSDD. The Council expects the European Parliament to eventually adopt its initial negotiating

position in May 2023, after which formal inter-institutional negotiations will commence.

With regards to sustainability reporting, the following legislation will impact ArcelorMittal.

First, by the end of November 2022, the European Council gave its final approval to Corporate Sustainability Reporting Directive (“CSRD”). The CSRD introduces more detailed reporting requirements and ensures that large companies and listed small and medium-sized enterprises are required to report on sustainability matters. It will fill the gaps in the existing rules on sustainability information.

The European Financial Reporting Advisory Group (“EFRAG”) developed draft standards with Environmental, Social, and Governance ("ESG") requested information. According to these standards, companies will have to disclose their activities on environmental matters such as climate change, pollution, water, marine resources, biodiversity, ecosystems, and circular economy; social matters such as policies, practices, material impacts, opportunities and risks related to own workforce, workers in its value chain, potentially affected communities, and consumers and end users; and governance matters, such as corporate culture, business policies and practices related to corruption, bribery, lobbying, business conduct, and payment.

ArcelorMittal has been analyzing these disclosures to comply with the requirements that will be applicable starting in 2024.

Second, in March 2022, the Securities and Exchange Commission (“SEC”) in the U.S. issued a proposed rule that, if adopted, would enhance and standardize climate disclosure requirements provided by public companies. The new regulation would require organizations to provide detailed reporting of their climate-related risks, emissions, and net-zero transition plans. These would include climate-related financial impact and expenditure metrics as well as a discussion of climate-related impacts on financial estimates and assumptions in the financial statements. These disclosures would also be subject to management’s internal control over financial reporting and external audit.

The proposed rule would apply to foreign private issuers who file annual reports on Form 20-F with the SEC, such as ArcelorMittal. The timing of implementation of the rule is unclear but the proposal was for large companies would have to disclose most of this information for fiscal year 2023, to be filed in 2024. For Scope 3 emissions, the SEC would provide an additional year beyond those deadlines, allowing companies to make use of Scope 1 and 2 filings by other companies in the prior year.

Environmental requirements impacting industrial operations are also becoming more stringent in other jurisdictions.

For example, in Canada, Environment and Climate Change Canada (“ECCC”), a department of the Government of Canada, updated the Base-Level Industrial Emissions Requirements (“BLIERs”) under the federal Air Quality Management System, which is expected to require considerable investments by companies to comply with emission regulations. Provincial regulations in Ontario and Quebec will also require further emissions reduction.

In Ontario, the BLIER requires ArcelorMittal Dofasco to install a full coke oven gas desulphurization by the end of December 2025. Authorities have been notified that ArcelorMittal Dofasco will not be installing desulphurization facilities as ArcelorMittal Dofasco is proceeding with its decarbonization project. Currently, on a plant-wide basis, ArcelorMittal Dofasco’s facility is meeting its BLIERs objective. Moreover, the decarbonization project will impact ArcelorMittal Dofasco’s overall NOx emissions.

In Kazakhstan, beginning in 2025, complex ecological permits for emissions into the environment will impose more stringent emissions standards and outline measures for reducing emissions (production improvements). Moreover, in July 2021, the new Environmental Code of the Republic of Kazakhstan came into force, which submits the “polluter pays” principle, increasing liability risks. Following Article 290 of the Environmental Code, the Republic of Kazakhstan developed a National Plan that provides for a reduction in GHG emissions from industrial installations by 26% from 2022 to 2025. In implementing the provisions of the Environmental Code from January 1, 2023 onwards, the presence of an Automated Monitoring System (“AMS”) will become a mandatory requirement with respect to facilities put into operation before July 1, 2021. The AMS monitors emissions to the environment at the principal stationary sources of emissions and has an online connection with the authorized bodies’ information system in the field of environmental protection (paragraph 16 of Article 418 of the Environmental Code of the Republic of Kazakhstan). However, companies have encountered problems in implementing AMS on time, due to external factors, such as lengthy administrative proceedings, disruption of supply chains and technical difficulties which require a complete or partial stop of production.

Also, the mechanism for accounting for losses in the extraction of solid minerals, which was provided by the Code of the

Republic of Kazakhstan "On Subsoil and Subsoil Use", was abolished, effective January 2023.

Between 2020 and 2021, the Ukrainian Parliament submitted a range of draft laws aiming to improve environmental protection policies and provide a variety of instruments to regulate GHG and industrial emissions, waste management sector, and strengthen the state environmental inspection. These draft laws convey a substantial change in the environment regulation in the coming years. The “Strategy of the State Environmental Policy of Ukraine for the Period until 2030” and its “Action Plan to 2025” adopted in 2021 set more ambitious targets for pollution reduction and more efficient use of natural resources, and the updated Nationally Determined Contribution commits the country to reduce GHG emissions until 2030. Since then, plans to end coal mining in a socially responsible manner have been launched, accompanied by efforts to improve the energy efficiency of buildings. Ukraine has also made substantial progress in the partial liberalization of gas tariffs and in reducing environmentally harmful fossil-fuel subsidies. The country is also establishing comprehensive systems for measuring progress in implementing environmental policies and making the Ukrainian economy greener. International partners, including the OECD, support the Ukrainian efforts to shift to a greener economy. In May 2022, the Government defined the procedure for declaring waste management. As a part of the IED implementation in Ukraine, the industrial emissions law will introduce a concept of BATs, which will be required for application by the largest facilities. Most of the large industrial companies have been building their investment strategies upon BATs while planning modernization or new construction projects. In September 2022, the “Law on the national register of emissions and transfer of pollutants" was adopted, determining the maximum openness of information and interaction with the public of enterprises-pollutants. This law will enter into force in October 2023. Also, in connection with martial law, several additional measures have been taken to ensure the work of enterprises in wartime conditions by extending the validity of permits for the period of martial law and three months after its termination (Cabinet of Ministers of Ukraine’s Decree from No. 314, March 18, 2022, some issues of ensuring economic activities in martial law conditions). For the period of martial law, the possibility of unplanned state control activities has been significantly reduced and planned activities have been suspended. In August 2022, amendments to the Law of Ukraine "On Atmospheric Air Protection" were agreed, which provide a ban on extending the period of measures to reduce emissions into the atmosphere following the emission permits. Additionally, the Ministry of Environment is preparing a national plan to reduce emissions by industrial enterprises.

In March 2022, Mexico published the new standard on wastewater discharges which reduces the maximum permissible

limits and considers new parameters that should be monitored and reported on a quarterly basis to the National Water Commission. ArcelorMittal defined internally the preliminary action plan to improve wastewater quality discharges according to this new requirement by applying operational controls. However, some specific areas require capital expenditure investments to comply with this new standard. The Company will file an official work program in early April 2023 to the relevant authority, the National Water Commission ("CONAGUA"), which, among other things, will request CONAGUA to provide a more accurate timeframe to define the scope and new technical specifications of wastewater treatment systems. Regarding new rules on the measurement of national water effective July 1, 2022, authorities granted the opportunity to present a work plan to achieve compliance by the end of 2023 due to a lack of authorized companies that may be able to apply the changes required and to install and prescribe the new continuous monitoring measurement systems.

For example, in Brazil, regulations from the National Mining Agency (“ANM”) focus mainly on simplifying the procedures for requesting research or mining, revising existing standards concerning mining companies’ obligations regarding the safety of mining dams (monitoring activities, compliance, operability assessments, and dam emergency action plans) and standardization of the procedures regarding the Mine Closure Plan and decommissioning requests (ANM Resolution No. 68, 04/30/21).

In the State of Minas Gerais, several norms regarding dam safety have been adopted, among them, the State Policy for People Affected by Dams, the guidelines for the presentation of the Emergency Action Plan, the rules applicable to the accreditation of independent external auditors to carry out technical safety audits under the scope of the State Policy for Dam Safety, as well as the process for registration and classification of dams subject to the State Policy for Dam Safety.

In Canada, the Company is negotiating depollution attestations applicable to AMMC facilities. In the mining sector specifically, some objectives for dust, NOx and SO2 were also identified, and a draft agreement prepared, but there has been no further progress.

In the province of Quebec, the renewal requests for the depollution attestations for AMMC's Mont Wright operations, Fire Lake, and Port-Cartier pellet plant continue to be in the analysis stage by the environmental authorities, which intend to apply the same standards to all mines. These permits establish the targets for water, air, soil, and waste management, as well as the monitoring and reporting frequencies and requirements for each target.

The Quebec Clean Air Regulation reduced the limit for total particulate matter (“PM”) from 120 to 75 grams/tonne produced for existing pelletizing plants, including AMMC. The electrostatic precipitator refurbishment plan included in the five-year capital expenditure plan will contribute to ensuring conformity with the new emission limit on a medium-term basis. This project is being undertaken over a 10-year timeline, and its expected cost will be approximately CAD15 million.

Moreover, renewed depollution attestations that will apply to AMLPC’s Contrecoeur West and East facilities issued respectively on December 21, 2018, and April 27, 2021, establish more stringent targets for water, air, soil, and waste management, as well as the monitoring and reporting frequencies and requirements. Obtaining the new depollution attestations will require increasing the monitoring frequencies, as conducting certain studies, including water usage, air dispersion modeling, Phase I and II environmental site assessment, former EAF dust stockpile site, and former slag management area restoration. The Contrecoeur West depollution attestation must be renewed in 2023.

Québec’s revised 2021 regulation relating to compensation for adverse effects on wetlands and bodies of water will apply to projects conducted in Port-Cartier and might apply to ArcelorMittal Long Products Canada’s future projects.

An environmental performance agreement signed between ECCC, the Iron Ore Company of Canada, and AMMC is in effect from January 5, 2018, to June 1, 2026. It aims to implement BLIERs developed for the iron ore pellet sector. More precisely, it specifies the membership, timelines, and deliverables of the NOx Working Group and will ensure that the BLIERs limits for PM2.5 and SO2 are met and that the approach to study NOx is implemented.

In addition, in 2022, the Company approved 30 multi-year projects with identified environmental benefits and involving capital expenditures of $488 million and 57 multi-year projects with identified energy benefits and involving capital expenditure of $802 million. The latter includes 25 multi-year projects specifically targeted to decarbonization involving capital expenditures of $579 million. Capital expenditures related to decarbonization initiatives amounted to $0.2 billion for the year ended December 31, 2022 and are expected to increase to $0.4 billion in 2023. See also further information on key environmental projects in "Business overview—Sustainable development".

In December 2015, 195 countries participating in the United Nations Framework Convention on Climate Change (“UNFCC”), at its COP21 held in Paris, adopted a global agreement on the reduction of climate change (the “Paris Agreement”). The Paris

Agreement sets a goal to limit the increase in global average temperature to well below 2 degrees Celsius and pursues efforts to limit the increase to 1.5 degrees Celsius, to be achieved by getting global GHG emissions to peak as soon as possible. The Paris Agreement consists of two elements: first, a legally binding commitment by each participating country to set an emissions reduction target, referred to as nationally determined contributions (“NDCs”), with a review of the NDCs that could lead to updates and enhancements every five years beginning in 2023 (Article 4) and, second, a transparency commitment requiring participating countries to disclose in full their progress (Article 13). The majority of countries have issued their intended NDCs.

More recently in November 2022, during COP27, participants prioritized the international actions that need to be taken by COP28: to accelerate the development of standards for low-emission and net-zero emission steel by developing a draft with common definitions (such as “green steel”); to grow demand commitments for low and net-zero emission steel by working to establish packages of coordinated procurement; to identify priority projects for net-zero emission steel technologies; to launch a strategic dialogue on the trade of low and near-zero emissions, to enhance the overall public offer of international assistance towards deep decarbonization of the steel sector; and to enhance the coordination and transparency of international collaboration on near zero emission steel.

The United Nations’ High-Level Expert Group on the Net Zero Emissions Commitments of Non-State Entities published the report “Integrity Matters: Net Zero Commitments by Businesses, Financial Institutions, Cities and Regions”, with a focus on how companies and other non-state actors can avoid greenwashing when it comes to climate pledges and action. The report provides ten practical recommendations for companies to bring integrity, transparency, and accountability net-zero by establishing clear standards and criteria.

The Alliance for Industry Decarbonization was launched to decarbonize industrial value chains and accelerate net-zero ambitions following the Paris Agreement.

On July 14, 2021, the European Commission adopted the “Fit for 55” Package with a view to adapting climate and energy legislation to the 2030 ambition set by the European Climate Law. The EU also committed internationally to its 55% reduction target. The “Fit for 55” amends several pieces of legislation that are already applicable to ArcelorMittal, such as the EU Emissions Trading Scheme (“EU-ETS”), the Renewable Energy Directive, the Energy Efficiency Directive, Energy Taxation Directive and introduces a proposal for establishing a Carbon Border Adjustment Mechanism (“CBAM”). The institutions are finalizing the negotiations on this package, with an agreement reached at the end of December 2022.

Moreover, the European Green Deal announced the revision of the Renewable Energy Directive (“RED”). The European Commission proposed to increase the current EU-level target of at least 32% of renewable energy sources in the overall energy mix to at least 40% by 2030, which represents double of the current renewables 19.7% share in just a decade. The proposal aims to deploy renewables across all sectors, and particularly in sectors where progress in integrating renewables has been slower – such as the industry.

Also, under the “REPowerEU” plan presented in May 2022, the Commission proposed to raise the energy efficiency target set by the Energy Efficiency Directive from 9% to 13% by 2030.

Finally, the Ecodesign for Sustainable Product Regulation (“ESPR”) builds on the Directive 2009/125/EC (“Ecodesign Directive”) and is in the European Green Deal a cornerstone to more environmentally sustainable and circular products. The new regulation acts as a framework and complements existing product regulation. The regulation is implemented following a workplan through secondary legislation by “Delegated Acts”. “Digital Product Passports” must ensure relevant environmental information is transferred along the supply chain on need-to-know basis.

For example, South Africa has a comprehensive and constantly evolving environmental regulatory framework to regulate the carbon footprint of the steel industry in the form of carbon pricing mechanisms and emission thresholds, as well as to

address climate change and decarbonization. The Carbon Tax Act to tax carbon dioxide emissions was adopted and came into effect in 2019. The Climate Change Bill has been approved by the parliament. This Climate Change Bill will set up a comprehensive and harmonized GHG legal framework, along with implementing Carbon Budget allocations for companies from 2023 onwards (the Carbon Tax Act, in combination with the already collected Carbon Tax, will tax amounts in excess of these allocations).

South Africa enacted the National Environmental Laws Amendment Bill ("NEMLAA4") was promulgated on June 24, 2022, which will be proclaimed into law on a date to be fixed by the President. Notable changes to be introduced by NEMLAA4 include changes to the rectification process prescribed under section 24G of National Environmental Management Act (“NEMA”) and section 22A of the National Environmental Management: Air Quality Act 39 of 2004 (“NEMAQA”) with respect to commencing unlawfully activities while not having the required authorizations and licenses in place prior to commencement of activities. These changes include mandatory stoppage, the extension of enforcement powers; and the possible extension of the requirement for financial provisioning to high-impact industries.

Following the update of South Africa's Nationally Determined Contribution in terms of its GHG emission contribution as per the Paris Agreement commitments, the final Just Transition Framework for South Africa was released in July 2022, which aims to guide the transition away from fossil-fuel-based energy, towards a low-emissions and climate-resilient economy. The steel sector has been identified as an industry that will be greatly affected by the transition away from coal. Finally, there are several hydrogen and green hydrogen policy developments underway. On February 17, 2022, South Africa released its Hydrogen Society Roadmap for South Africa, which sets out ambitious goals for the production and use of hydrogen as a cleaner alternative fuel to contribute to a carbon neutral economic growth for South Africa by 2050, including being a contributor to the production of green steel.

The Department of Mineral Resources and Energy has also implemented mechanisms to reduce the burden of licensing to promote additional renewable energy generation.

In Canada, carbon pricing regulations are becoming more stringent.

From January 1, 2022, ArcelorMittal Dofasco and Ontario industries have been regulated on carbon pricing under the Ontario Emissions Performance System (“OEPS”), transitioning out of the Federal out-put based pricing system (“OBPS”).

The Federal government intends to ensure provincial GHG programs are rigorous enough to meet Federal carbon reduction targets (40–45% lower than in 2005 by 2030).

The Ontario provincial authority has signaled that the steel sector may be exempt. However, additional details have not been provided. Additional details will be provided before the Director's official issuance notice in the first quarter of 2023.

The development of facility-specific emissions targets for the innovative DRI facilities will also need to be developed, which are frequently based on three years of performance following the start-up of a facility. Detailed discussions are expected to begin in the first quarter of 2023.

The proposed approach to address ArcelorMittal Dofasco’s decarbonization program during the transformation periods is yet to be determined. This debate is expected to begin in the first quarter of 2023. Compliance is to be achieved by reducing GHGs or by purchasing compliance units (e.g., surplus credits & offsets).

In Quebec, the 2030 Plan for a Green Economy set a 37.5% GHG emission reduction target by 2030 compared with 1990 levels, so that Quebec reaches carbon neutrality by 2050. Separate consultations by the government of Quebec are underway with large GHG emitters regarding the cap-and-trade program regulation for the second and subsequent compliance periods from 2021 to 2030. For Quebec, consultations were completed for the 2021 to 2023 compliance period. For the period 2024 to 2030, negotiations are still in progress.

As part of Canada’s climate plan to reduce emissions and accelerate the use of clean technologies and fuels, in June 2022 the final Clean Fuel Regulations (“CFR”) under Canadian Environmental Protection Act 1999 (“CEPA”) were registered bringing the 2017 Clean Fuel Standard (“CFS”) into law. It came into force upon registration, except for two sections repealing

the pre-existing Renewable Fuels Regulations (“RFRs”), which will come into force on September 30, 2024. The CFS establishes lifecycle carbon intensity requirements separately for liquid, gaseous and solid fuels that are used in transportation, industry, and buildings. This performance-based approach, intended to incentivize innovation, development, and use of a broad range of lower-carbon fuels, alternative energy sources and technologies, only requires liquid fuel (e.g., gasoline, diesel, home heating oil) suppliers to reduce the carbon intensity (“CI”) of their fuels. Gaseous and solid fossil fuels have been eliminated from the scope.

In Brazil, in 2022, the National Mining Agency increased the roll of infractions and its fines, which from January 2023 onwards, will be calculated as a percentage of mineral production, without limitation. Moreover, environmental standards for tailings disposal and dams have become more stringent.

Brazil also created the National Policy of the Judiciary for the Environment, establishing the monitoring of climate actions and imposing that indemnity amounts for environmental damages must include the impact of the damage on global climate change and the diffuse damage to affected peoples and communities.

Brazil has evolved in the regulation of the carbon market. It instituted the National System for the Reduction of Emissions of Greenhouse Gases (“SINARE”) and established the procedure for the elaboration of Sectorial Plans for Mitigation of Climate Change that will define the emission reduction targets for each sector in the following years.

Argentina ultimately aims to be carbon neutral by 2050. Law 11.717 and Decree 101/03 for Santa Fe province regulate environmental licenses and the environmental requalification plan. The Villa Constitución plant’s license was officially obtained in June 2013. The Villa Constitución plant’s committed plan was monitored by environmental authorities and completed in January 2014. This license was renewed in 2017 for one year, tied to investments in water treatment for direct reduction process effluents, which had been completed in March 2019, and the new license was granted In August 2021 for one year (due to COVID an audit was not performed). At present, all of the plant's environmental licenses are in the process of renewal with no known issues preventing approval but with some delay from environmental authorities.

Moreover, the Renewable Energy Law established mandatory national targets for electricity consumption from renewable energy sources: 8% in 2018; 12% in 2019/20, 16% in 2021/22, 18% in 2023/24, 20% in 2025. All energy-intensive industries are required to contribute to the mandatory national targets, but no significant impact is expected on Acindar, which has decided its renewable energy business plan as follows: 1) the Villa Constitución site is accomplishing targets by buying renewable

energy from Cammesa. From 2024 onwards demand will be contracted through a private Power Purchase Agreement (“PPA”). 2) for the Tablada site demand has been provided by private PPA since 2019. 3) Annual Acindar demand targeted at 1.3 Terawatt-hour per year.

In Ukraine, the climate change policy is being dynamically developed. The Law On Monitoring, Reporting, and Verification of GHG emissions ("MRV Law") came into force on January 1, 2021. It aims at introducing the EU’s MRV rules for the largest carbon emitters and paves the way for the ETS implementation, which is compatible with EU-ETS. Hence, in April 2022 the first verified data on GHG emissions from the largest Ukrainian industrial companies were supposed to be published following the MRV Law. However, the Ministry of Environmental Protection and Natural Resources of Ukraine provided clarifications on the postponement of reporting following the Resolution of the Cabinet of Ministers of Ukraine from February 28, 2022, No. 165 "On Suspension of the Terms of Provision of Administrative Services and Issuance of Permits". Currently, there have been no other changes. The strategy will be implemented following the approved action plan, setting out the list of measures for consecutive three years.

ArcelorMittal is closely monitoring local, national, and international negotiations, and regulatory and legislative developments and is endeavoring to reduce its emissions where appropriate.

ArcelorMittal’s operations are subject to a broad range of laws and regulations relating to the protection of human health and safety. As these laws and regulations in the United States, the EU and other jurisdictions continue to become more stringent, ArcelorMittal expects to expend substantial amounts to achieve or maintain compliance. See “Introduction—Risk factors—Legal and regulatory risks—ArcelorMittal is subject to strict environmental, health and safety laws and regulations that could give rise to a significant increase in costs and liabilities.” ArcelorMittal has established health and safety guidelines requiring each of its business units and sites to comply with all applicable laws and regulations. Compliance with such laws and regulations and monitoring changes to them are addressed

primarily at the business unit level. ArcelorMittal has a clear and strong health and safety policy, aimed at reducing on a continuing basis the severity and frequency of accidents; through its Health & Safety Council and Management Committee, the Company reinforces the penetration of the safety culture in the Company. The effective policy outlines the commitment ArcelorMittal has made to the health and safety of all employees and reinforces the accountability of the local management and encourages the continuous improvement in health and safety performance at unit level, which permits the Health & Safety Council and Management Committee to define and track performance targets and monitor results from every business unit and sites. See "Business overview—Sustainable development—Health and safety" for further information.

ArcelorMittal has manufacturing operations in many countries and sells its products worldwide. In 2022, certain countries and communities, such as Canada, the EU, Mexico, Turkey and the U.S. continued or launched investigations into whether to impose or continue imposing trade remedies (usually anti-dumping or safeguard measures) against injury, or the threat thereof, caused by increasing steel imports originating from various steel producing countries.

Under both international agreements and the domestic trade laws of most countries, trade remedies are available to domestic industries where imports are “dumped” or “subsidized” and such imports cause injury, or a threat thereof, to a domestic industry. Although there are differences in how trade remedies are assessed, such laws have common features established in accordance with World Trade Organization (“WTO”) standards. Dumping involves exporting a product at a price lower than that at which the same or similar product is sold in the home market of the exporter, or where the export prices are lower than a value that typically must be at or above the full cost of production (including sales and marketing costs) plus a reasonable amount for profit. Subsidies from governments (including, among others, grants and loans at artificially low interest rates) are similarly actionable under certain circumstances. The trade remedies available are typically (i) an anti-dumping duty order where injurious dumping is found and (ii) a countervailing duty order or suspension agreement where injurious subsidization is found. Normally, the duty is equal to the amount of dumping or subsidization that is generally imposed on the imported product (other than in the EU where the lesser duty rule is applied). Accordingly, such orders and suspension agreements do not prevent the importation of a product, but rather require that either the product be priced at a non-dumped level or without the benefit of subsidies, or that the importer pays the difference between such dumped or subsidized price and the actual price to the government as a duty.

Safeguard measures are addressed more generally to a particular product, irrespective of its country of origin, to protect domestic production against serious injury caused by unforeseen, sharp and sudden increase of imports.

All WTO members are required to review anti-dumping duty and countervailing duty orders every five years to determine if they should be maintained, revised or revoked. This requires a review of whether the dumping or subsidization is likely to continue or recur if the order/suspension agreement is revoked and whether a domestic industry in the country is likely to suffer the continuation or recurrence of the injury within the reasonably foreseeable future if the orders are revoked. If the government finds dumping or subsidization and the injury is likely to continue or recur, then the orders continue. In the case of safeguard measures enduring for greater than three years, all WTO members are required to review the imposed measures in the mid-term of the relevant measure. After a review, safeguard measures may be extended if they continue to be required, but the total period for the application of safeguard measures may not exceed eight years.

In a number of markets in which ArcelorMittal has manufacturing operations, it may be the beneficiary of trade actions intended to address trade distortions consistent with WTO regulations, such as the examples mentioned above. In other situations, certain operations of ArcelorMittal may be a respondent to anti-dumping and countervailing duty cases and its exported products might be subject to anti-dumping and countervailing duties or other trade restrictions, for example anti-dumping duties imposed in 2017 by the Egyptian government against rebar imports from Ukraine, Turkey and China affecting exports from ArcelorMittal operations in Ukraine.

On March 23, 2018, after a section 232 national security investigation with respect to steel imports, the Trump Administration imposed tariffs of 25% on steel products from all but a select list of countries, with a temporary suspension applied for Canada, Mexico, Argentina, South Korea, Brazil and the EU until May 1, 2018. Subsequently, Australia obtained a full exemption, and imports from Argentina, Brazil and South Korea became subject to annual quotas. Tariffs on imports of steel products from Canada and Mexico were eliminated on May 17, 2019, which led to positive impacts in the Company’s NAFTA business units; imports from Canada and Mexico were monitored to identify whether imported volumes surged meaningfully beyond historic levels.

On October 31, 2021, the U.S. and EU announced that they had reached an agreement to modify the section 232 measures on U.S. steel imports from the EU. Effective January 1, 2022, the U.S. replaced the existing Section 232 tariffs on EU steel with a Tariff-rate Quota ("TRQ") consistent with pre-Section 232 trade

The USA Section 232 tariffs triggered concerns of trade deflection worldwide and several countries initiated domestic remediation measures. On July 19, 2018, the EU Commission imposed provisional measures based on global tariff quotas with a 100% quota based on average imports over the past three years on 23 product categories. Imports that exceeded the above quotas would face a 25% tariff but certain 'developing' countries were exempt when their respective import shares were below 3%. The EU’s provisional safeguard measures were replaced by definitive safeguard measures on February 2, 2019, which cover the full steel product scope, setting country-based quotas for larger importers on all product categories, except for hot rolled (global), and quarterly quota calculations for residual volumes of all products. The measures also included annual quota relaxations, adaptable to market conditions. Countries subject to quotas have an incentive to front-load the consumption of their national quota in order to benefit from the residual quotas in the final quarter of the period, thus ensuring full quota consumptions. In 2019 and 2020, the EU commission completed review investigations of these safeguard measures and implemented various technical modifications, such as capping the HRC quota to 30% per exporting country.

In 2021, the EU Commission carried out a review into extending the safeguard measures to consider whether the situation justified prolonging the tariff-rate quota. On June 18, 2021, EU member states voted in favor of a three-year extension prolonging the measures until June 30, 2024. There were no changes to the quota modalities, however it was agreed to carry out a review of the quota levels after one year and a review of the measures in general after two years.

In the first half of 2022, the European Commission carried out the first review of the renewed measures and made the following changes, implemented from July 1, 2022:

Separately, from April 1, 2022, all Russian and Belarusian quota volumes began to be redistributed across other country-specific quotas and the residual quota based on 2021 imports.

On December 2, 2022, the EU Commission opened a review into whether or not the measures should continue for their final year from July 2023 - June 2024. The conclusion is expected by June 2023.

Anti-dumping duties on Hot-Rolled Coil entering the EU from China, Brazil, Russia, Iran and Ukraine have been in place since 2017. In addition, China is subject to anti-subsidy measures. These measures are currently the subject of expiry reviews initiated by the European Commission. On February 17, 2023 the Commission removed Ukraine from the investigation, and therefore from the measures if they are renewed.

During 2022, the Commission also opened expiry reviews into anti-dumping measures on imports of Chinese Heavy Plate and Belarusian Rebar. Anti-dumping measures on Cold-Rolled Coil from China and Russia were extended for a further 5 years. On October 12, 2022, Member States agreed on the implementation of anti-dumping duties against ECCS from China.

New anti-dumping measures were imposed on imports of Turkish & Russian Corrosion-Resistant Steel (non-auto) as well as electrolytic chromium coated steel from China.

In response to the measures adopted by the United States and the EU, Turkey opened a safeguard investigation on May 2, 2018 with provisional measures effective as of October 17, 2018. Turkey’s safeguard investigation on iron and steel products, which was supposed to be concluded by January 26, 2019, was extended for six months, i.e., until July 26, 2019, with provisional safeguard measures that remained in effect until May 5, 2019. The investigation covered hot-rolled, cold-rolled, coated, hot-dipped galvanized, bars and rods, angles, shapes and sections, wire rod, rails, tubes and hollow profiles and stainless steel and the provisional measures were in the form of a free tariff quota with 25% duties. The investigation was terminated on May 7, 2019 without permanent safeguard measures being imposed. In January 2021, Turkey opened an investigation into HRC coming from the EU and South Korea. The investigation lead to a 10.9% duty being applied to imports from ArcelorMittal as from July 7, 2022.

In 2022, the U.S. completed reviews of anti-dumping and countervailing duty measures in place on corrosion-resistant, cold-rolled, and hot-rolled steel, and cut-to-length steel plate, continuing most duties for another 5 years.

In Canada, as a result of the opening of a safeguard investigation on certain flat and long products, provisional measures were put in place on October 25, 2018 in the form of quotas and a 25% tariff on steel imports. Final safeguard measures were subsequently implemented in relation to plate and stainless wire, but not rebar, hot rolled, prepaint, wire rod and energy tubulars. In addition, thirteen cold-rolled and corrosion-resistant anti-dumping and countervailing duty measures were implemented between 2018-2020. In 2021, anti-dumping and countervailing duty measures were initiated for hot-rolled from China, Brazil, Ukraine and India under a five-year review. As of 2022, the measures remained in place for all countries except Ukraine. The Eurasian economic union led by Russia also opened a safeguard investigation on August 7, 2018 covering some flat steel products only and on August 8, 2019, safeguard measures covering hot-rolled steel were put in place, imposing 20% tariffs above relevant quotas.

As a holding company, ArcelorMittal is dependent on the industrial franchise fees from, earnings and cash flows of, and dividends and distributions from, its operating subsidiaries to pay expenses, meet its debt service obligations, pay any cash dividends or distributions on its ordinary shares or conduct share buy-backs. Significant cash or cash equivalent balances may be held from time to time at subsidiaries where repatriation of funds may be affected by tax and foreign exchange policies, including in Argentina, Brazil, China, Kazakhstan, South Africa, Ukraine and Venezuela. Such policies are briefly summarized below; however, none of these are currently significant in the context of ArcelorMittal’s overall liquidity.

The Central Bank of Brazil ("BCB") operates, consistent with the inflation targeting rate, a free floating foreign exchange regime that aims to reduce excessive volatility, although intervention has become more regular in recent years. The BCB regulates all currency inflows and outflows in Brazil, and the country's foreign exchange regime does not permit free convertibility of the currency. Nevertheless, the BCB does not intervene in the foreign exchange market to determine the exchange rate. The Brazilian Real is fully deliverable onshore (i.e., physical settlement of the designated currency at maturity), but is non-deliverable offshore. As a result, foreign currency transactions must be executed with an institution authorized by the BCB to carry out such transactions, which is responsible for ensuring compliance with the local foreign exchange regulation. With proper documentation, the repatriation of registered invested capital and remittance of profits do not require prior approval from the BCB. Profits can be freely remitted as dividends or as interest on capital to foreign shareholders or portfolio investors.

China’s foreign exchange regime has undergone significant liberalization in recent years. The People’s Bank of China (“PBOC”) maintains the Chinese renminbi in a managed float with reference to a basket of currencies. The CNY, which refers to the Chinese renminbi on the onshore market, is partially convertible and has a non-deliverable offshore market. CNY foreign currency spot transactions under USD 50,000 per year do not require supporting documents. All onshore transactions

involving foreign exchange are strictly controlled by the State Administration of Foreign Exchange. The foreign currency exchange fixing rate is announced every morning at 9:15 Beijing time, and the interbank market is only allowed to trade within 2% of the fixing rate for onshore CNY versus USD. Since 2021, repatriating capital or profits out of China includes increased layers of inspection and security from the government. The PBOC has decided to increase the amount of foreign-currency deposits that financial institutions need to hold as reserves, as from June 2021, in order to curb sell-offs of foreign currencies after the renminbi's value climbed to a record high. The CNH, which is the Chinese renminbi traded offshore, became deliverable in Hong Kong in July 2010. The CNH can generally be transferred freely between offshore accounts and interaction with the onshore market is growing, although transfers of CNH from Hong Kong to onshore China are subject to regulations and approval by the PBOC. Moreover, in July 2020, integration of the interbank and exchange bond markets, as well as wider participation in the treasury bond futures market, suggest that more progress is likely to be made by the PBOC to move toward increased internalization of the Chinese market.

The Reserve Bank of India ("RBI") maintains the Indian rupee (“INR”) in a managed floating regime. The INR is partially convertible and has a non-deliverable offshore market. Onshore deliverable forwards are also available out to 10 years. The most common tenor with the best liquidity in the forwards market is one year or less. The RBI monitors the value of the INR against the REER. The INR exchange rate is determined in the interbank foreign exchange market. The INR is convertible for exports and imports of goods and services as well as unilateral transfers, including repatriating profits from foreign-funded companies, as well as for daily recurring transactions in the ordinary course of business. However, the INR is restricted on capital accounts (purchase and sale transactions of foreign assets and liabilities) and there are specific transactions that have to be authorized by the RBI or other relevant government departments for routine capital account transactions, e.g. foreign currency borrowings under the approval route or foreign direct investments that are not permitted under the automatic route. A daily benchmark fixing is published by the Financial Benchmark of India Limited for INR against USD, EUR, JPY and GBP. Other permitted capital account transactions that are allowed, subject to compliance with local applicable regulations, include foreign direct investment, foreign currency loans and bonds, securities and equity investments overseas. In April 2020, the RBI issued final guidelines on “Hedging of foreign exchange risk by Residents and Non-Residents”. The simplified guidelines are expected to have a positive material impact on product suite, procedures and requirements for hedging requests which will impact both local and global franchises.

In August 2015, the National Bank of Kazakhstan devalued the Kazakhstan tenge and introduced a free-floating exchange rate with an inflation targeting regime. The National Oil Fund conducts open market operations to finance economic programs, hence the current exchange rate regime may be best described as a managed float. Liquidity in foreign exchange markets is limited and mainly non-deliverable forwards are traded on offshore markets. There are no restrictions on tenge convertibility, but domestic legal entities must state their reasons for buying foreign currency and may only trade with authorized banks.

The National Bank of Ukraine ("NBU") is responsible for the country’s monetary policy. Due to the ongoing geopolitical conflict with Russia since the end of February 2022, on-shore liquidity on Ukrainian Hryvnya ("UAH") has been significantly reduced, leading to the NBU implementing strong regulation to control foreign exchange transactions: thus, legal entities must first use foreign currencies they have at their disposal and then access the foreign exchange market of Ukraine. In addition, NBU has frozen the official exchange rate, currently at 36.57UAH/USD. Doing offshore NDF remains possible, but only in extremely limited circumstances.

Venezuela’s foreign exchange regime has been characterized by governmental devaluation and legislative changes. DICOM is the country’s official exchange rate. On August 20, 2018, the bolivar soberano ("VES") replaced the bolivar fuerte ("VEF") at a rate of 1 VES to 100,000 VEF. The only way to convert the VES is through the DICOM rate, which sets an exchange limit of

Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 added Section 13(r) to the U.S. Securities Exchange Act of 1934, as amended (the Exchange Act). Section 13(r) requires an issuer to disclose in its annual reports whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran. Disclosure is required even where the activities, transactions or dealings are conducted outside the United States by non-US persons in compliance with applicable law, and whether or not the activities are sanctionable under US law.

In 2022, neither ArcelorMittal nor any of its affiliates engaged in activities, transactions or dealings relating to Iran triggering disclosure under Section 13(r).

ArcelorMittal continues to monitor developments in this area, in particular the status of U.S. Sanctions, the Joint Comprehensive Plan of Action ("JCPOA") and EU Sanctions, and the expansion of the EU Blocking Regulation (Council Regulation (EC) 2271/96). ArcelorMittal carefully monitors political risk and sanctions exposure and has procedures and systems in place intended to manage those risks.

However, ArcelorMittal’s business is subject to an extensive, complex and evolving regulatory framework. It is possible that ArcelorMittal may face conflicting obligations or risks under U.S. direct and secondary sanctions and the EU Blocking Regulation, or other conflicting instruments. Despite its governance, compliance policies and procedures and continuous efforts to comply with all applicable sanctions regimes, its systems and procedures may not always prevent the occurrence of violations which may lead to regulatory penalties or cause reputational harm to operating subsidiaries, joint ventures or associates. See “Introduction—Risk factors.”

Please refer to the "Glossary—definitions, terminology and principal subsidiaries" for a listing of the Company’s principal subsidiaries, including country of incorporation. Please refer to note 2.2.1 of the consolidated financial statements for the ownership percentages of these subsidiaries. Unless otherwise stated, the subsidiaries as listed have share capital consisting solely of ordinary shares, which are held directly or indirectly by the Company and the proportion of ownership interests held equals to the voting rights held by the Company.

ArcelorMittal reports its business in the following five reportable segments corresponding to continuing activities: NAFTA, Brazil, Europe, ACIS and Mining.

As from April 1, 2021, ArcelorMittal implemented changes to its organizational structure whereby primary responsibility for captive mining operations whose output is mainly consumed by their respective steel segments has been transferred to such segments. The Mining segment retains primary responsibility for the operation of the seaborne oriented operations at AMMC and ArcelorMittal Liberia Ltd, and will continue to provide technical support to all mining operations within the Company. Only the seaborne-oriented operations of AMMC and ArcelorMittal Liberia Ltd are reported within the Mining segment. The results of all other mines are henceforth accounted for within the steel segment that they primarily supply.

NAFTA produces flat, long and tubular products. Flat products include slabs, hot rolled coil, cold rolled coil, coated steel products and plate and are sold primarily to customers in the following sectors: automotive, energy, construction packaging and appliances and via distributors and processors. Flat product facilities are located at two integrated and mini-mill sites located in two countries. Long products include wire rod, sections, rebar, billets, blooms and wire drawing. Long production facilities are located at two integrated and mini-mill sites located in two countries. In 2022, shipments from NAFTA totaled 9.6 million tonnes. The raw material supply of the NAFTA operations includes sourcing from iron ore captive mines in Mexico to supply the steel facilities.

Brazil produces flat, long and tubular products. Flat products include slabs, hot rolled coil, cold rolled coil and coated steel.

Long products comprise sections, wire rod, bar and rebars, billets and wire drawing. In 2022, shipments from Brazil totaled 11.5 million tonnes. The raw material supply of the Brazil operations includes sourcing from iron ore captive mines in Brazil.

Europe produces flat, long and tubular products. Flat products include hot rolled coil, cold rolled coil, coated products, tinplate, plate and slab. These products are sold primarily to customers in the automotive, general industry and packaging sectors. Flat product facilities are located at 11 integrated and mini-mill sites located in five countries. Long products include sections, wire rod, rebar, billets, blooms and wire drawing. Long product facilities are located at 10 integrated and mini-mill sites in seven countries. In addition, Europe includes downstream solutions, which provides primarily distribution of long and flat products as well as value-added and customized steel solutions through further processing to meet specific customer requirements. In 2022, shipments from Europe totaled 30.2 million tonnes. The raw material supply of Europe operations includes sourcing from iron ore captive mines in Bosnia & Herzegovina.

ACIS produces a combination of flat, long and tubular products. It has five flat and long production facilities in three countries. In 2022, shipments from ACIS totaled 6.4 million tonnes, with shipments made on a worldwide basis. The raw material supply of the ACIS operations includes sourcing from iron ore captive mines in Kazakhstan and Ukraine and coal captive mines in Kazakhstan.

ArcelorMittal has steel production facilities, as well as iron ore and coal mining operations, in North and South America, Europe, Asia and Africa.

All of ArcelorMittal's operating subsidiaries are substantially owned by ArcelorMittal through intermediate holding companies, and are grouped into the five reportable segments described above. Unless otherwise stated, ArcelorMittal owns all of the assets described in this section. Regarding ArcelorMittal's iron ore and coal mines, see also "—Reserves and resources (iron ore and coal)" below, where information is provided in accordance with SEC Regulation S-K, Subpart 1300 (“S-K 1300”).

For further information on environmental issues that may affect ArcelorMittal’s utilization of its assets, see “Business overview—Government regulations”, "Business overview—Sustainable development" and note 9.1 to ArcelorMittal’s consolidated financial statements.

The following table provides an overview by type of steel facility of the principal production units of ArcelorMittal’s operations. While all of the Group’s facilities are shown in the tables, only the facilities of significant subsidiaries are described textually for each segment. The facilities included in the tables are listed from upstream to downstream in the steel-making process.