Boris Bourdet

Boris Bourdet asked about the likelihood of the European Commission's proposed trade barriers being adopted without dilution, the potential for China to cut steel production due to anti-pollution measures, and sought clarification on ArcelorMittal's European market share.

Answer

CFO Genuino Christino stated that an accelerated approval process for European trade measures implies no significant changes to the proposals. Head of Investor Relations Daniel Fairclough noted no real change in China's impact on external markets despite anti-pollution headlines, with continued weak prices and elevated exports. Genuino Christino confirmed ArcelorMittal's European market share is approximately 30%.

Boris Bourdet from Kepler Cheuvreux asked for ArcelorMittal's take on whether the European Commission's trade barrier proposals would be adopted in their current state or diluted. He also inquired about the possibility of China moving towards a production cut due to anti-pollution measures and sought clarification on ArcelorMittal's European market share.

Answer

Genuino Christino (CFO) stated that there is a desire for an accelerated approval process for European trade measures, which would ideally mean no significant changes or dilution. Daniel Fairclough (Head of Investor Relations) noted that despite headlines, no real change has been observed in China's impact on external markets (weak prices, high exports), emphasizing the need for government protections. Mr. Christino clarified that 30% is a reference for their European market share.

Boris Bourdet sought confirmation of the financial impact of tariffs, asking about mitigation measures. He also questioned the company's confidence in maintaining its €4.5-5.0 billion CapEx envelope given potential new projects like a second EAF.

Answer

EVP & CFO Genuino Christino confirmed a Q2 tariff cost of $140 million and stated that mitigation efforts, including cost-sharing with customers, would limit the net increase in Q3 to about $10 million. He expressed confidence in managing the CapEx envelope, noting that the completion of major projects like Liberia in 2025 will create financial room for new investments.

Boris Bourdet of Kepler Cheuvreux asked for confirmation of the estimated financial impact from tariffs and the specific mitigation measures being used. He also questioned the company's ability to maintain its CapEx guidance while considering new projects like a second EAF at Calvert.

Answer

EVP & CFO Genuino Christino confirmed the Q2 tariff cost was ~$140M and that mitigation efforts, including customer negotiations, are containing the net impact. He expressed confidence in maintaining the €4.5-5.0B CapEx envelope, explaining that the completion of current large projects like Liberia will create capacity for new investments without exceeding the guided range.

Boris Bourdet from Kepler Cheuvreux requested more detail on working capital optimization to aid in free cash flow modeling. He also asked for the company's view on the Chinese market, including the potential for stimulus and production cuts, and what further trade measures could be expected in Europe.

Answer

Group CFO Genuino Christino reiterated expectations for a full-year working capital release, supported by factors like working through high-cost inventory and slab builds for maintenance. Executive Daniel Fairclough noted the challenging demand in China and stated the company continues to lobby for protection from excess capacity. Genuino Christino added that key future European measures will involve new trade actions to replace expiring safeguards and developments on CBAM.

Boris Bourdet asked if management feels the European Commission is taking sufficient action on their concerns and inquired about the future strategy for its 28% stake in Vallourec, including a potential full acquisition.

Answer

CEO Aditya Mittal stated that while the European Commission is listening, tangible action on trade and CBAM is needed in the first half of the year to support the industry. Regarding Vallourec, he expressed satisfaction with the investment and the performance of its management team but confirmed that ArcelorMittal has no current intention of increasing its stake further.