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    Tom Zhang • Barclays Capital

    Tom Zhang's questions to ArcelorMittal SA (MT) leadership

    Tom Zhang's questions to ArcelorMittal SA (MT) leadership • Q2 2025

    Question

    Tom Zhang pressed for more detail on why the Q3 tariff impact was expected to be minimal despite increased exposure. He also asked for color on the European market, including price trends, raw material costs, and potential inventory builds ahead of CBAM.

    Answer

    EVP & CFO Genuino Christino reiterated that active mitigation, including sharing costs with customers, was containing the tariff impact. He noted that European demand remains sideways but inventories are low. He highlighted that upcoming regulations like CBAM and revised safeguards are creating positive dynamics for domestic producers by making importers more cautious.

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    Tom Zhang's questions to ArcelorMittal SA (MT) leadership • Q2 2025

    Question

    Tom Zhang of Barclays Capital pressed for more detail on the limited expected increase in tariff costs in Q3, considering the Calvert consolidation. He also inquired about the current state of the European steel market, including pricing trends, inventory levels, and the impact of upcoming regulatory changes like CBAM.

    Answer

    EVP & CFO Genuino Christino attributed the contained tariff impact to successful mitigation efforts, including cost-sharing with customers, despite the full consolidation of Calvert's import costs. Regarding Europe, he characterized demand as stable with low inventories, noting that upcoming CBAM and safeguard measures are creating positive uncertainty for domestic producers and that the company is awaiting key legislative action from the European Commission.

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    Tom Zhang's questions to ArcelorMittal SA (MT) leadership • Q1 2025

    Question

    Tom Zhang from Barclays sought clarification on the North America outlook, asking if the 'largely neutral' tariff impact implies stable Q2 earnings and about other factors like pricing in Canada and Mexico. He also asked about European job cuts, potential changes to the upstream footprint, and if these actions are linked to EU policy on energy and trade.

    Answer

    Group CFO Genuino Christino stated that North American order books are healthy, with stable volumes and slightly higher average prices expected, though tempered by Canadian and Mexican pricing. He reiterated that the full tariff impact in Q2 will be offset at the Calvert JV level. Regarding Europe, Christino noted encouraging policy momentum and stated there are no plans to change the company's footprint, viewing the environment more positively than a few months prior.

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    Tom Zhang's questions to ArcelorMittal SA (MT) leadership • Q2 2024

    Question

    Tom Zhang asked about potential catalysts to reverse the current unsustainable steel spreads and prices. He also requested clarification on the expected Q3 impact from the Mexico strike and the firmness of the target to release $1.6 billion of working capital in H2.

    Answer

    Executive Daniel Fairclough identified three potential catalysts for a price recovery: improved apparent demand, a market sentiment that prices have bottomed, and supply-side adjustments. Group CFO Genuino Christino affirmed the goal to reverse the $1.6 billion working capital investment in H2, primarily in Q4. Mr. Fairclough clarified the Mexico blockade's impact on Q3 volume and profitability would be similar to Q2.

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    Tom Zhang's questions to HOLN leadership

    Tom Zhang's questions to HOLN leadership • H1 2025

    Question

    Tom Zhang of Barclays Capital questioned the market dynamics in Mexico amid a perceived slowdown and asked for clarification on the balance sheet guidance, which appeared conservative and could imply room for additional shareholder returns.

    Answer

    CEO Miljan Gutovic expressed confidence in a H2 acceleration in Mexico, driven by new government infrastructure and housing initiatives. CFO Steffen Kindler clarified the net debt guidance is before major M&A and leaves flexibility for H2 bolt-on acquisitions while remaining comfortably within the guided range.

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    Tom Zhang's questions to HOLN leadership • Q2 2025

    Question

    Tom Zhang of Barclays Capital questioned the market dynamics in Mexico and the seemingly conservative net debt guidance, asking if it allows for extra shareholder returns.

    Answer

    CEO Miljan Gutovic expressed confidence in a H2 acceleration in Mexico, driven by new infrastructure and residential projects. CFO Steffen Kindler clarified the net debt guidance is prudent, accounting for various cash outflows and leaving flexibility for further bolt-on acquisitions in H2.

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    Tom Zhang's questions to HOLN leadership • H1 2025

    Question

    Tom Zhang of Barclays Capital questioned the market dynamics in Mexico amid a perceived slowdown and asked if the balance sheet guidance was conservative, potentially allowing for additional shareholder returns.

    Answer

    CEO Miljan Gutovic stated there was no slowdown in Mexico, but rather a shift in project timing, with a strong infrastructure and residential pipeline expected to accelerate in H2. CFO Steffen Kindler explained the net debt guidance is stated before major M&A and provides flexibility for further bolt-on acquisitions in the second half.

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