Reinhardt van der Walt

Reinhardt van der Walt asked about ArcelorMittal's capital allocation strategy for Europe if proposed safeguard replacements are implemented, and the potential for Europe to become a significant area for future capital investment. He also asked about the costs required to bring additional European capacity to market.

Answer

CFO Genuino Christino explained that a clear framework allowing the European industry to earn its cost of capital would enable investment consideration, anticipating a gradual, multi-year journey. He detailed that increasing capacity would leverage fixed costs but also incur higher variable costs, including CO2 allowances and higher quality materials.

Reinhardt van der Walt of Bank of America Merrill Lynch asked whether the exited contracts were EBITDA or EBIT loss-making, inquired about the company's ERP visibility for ROIC optimization, and sought guidance on the CapEx outlook.

Answer

CEO Tony Smurfit confirmed the exited contracts were EBITDA loss-making. EVP & Group CFO Ken Bowles added that the company now has full P&L visibility at the individual entity level, with balance sheet visibility at the segment level being the next phase. Regarding capital expenditures, CEO Tony Smurfit stated that full guidance for the next five years will be provided in February as part of the new strategic plan, with a steer for next year's CapEx likely coming sooner.

Reinhardt van der Walt of Bank of America Merrill Lynch asked if the exited contracts were EBITDA or EBIT loss-making and if the company has the system visibility for ROIC optimization. He also inquired about the capital expenditure outlook for fiscal year 2026.

Answer

CEO Tony Smurfit confirmed the exited contracts were EBITDA loss-making. EVP & Group CFO Ken Bowles added that the company now has full P&L visibility at the entity level and is working on breaking out the balance sheet, which will enable plant-level ROIC analysis soon. Regarding CapEx, CEO Tony Smurfit stated that a full five-year strategic plan and guidance will be provided in February, with a potential steer for next year's CapEx coming earlier.