ArcelorMittal : ESG presentation - Nov 2020

Leadership on climate change November 2020

Disclaimer

Forward-Looking Statements

This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words "believe", "expect", "anticipate", "target" or similar expressions. Although ArcelorMittal's management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal's securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the "SEC") made or to be made by ArcelorMittal, including ArcelorMittal's latest Annual Report on Form 20-F on file with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-GAAP/Alternative Performance Measures

This document includes supplemental financial measures that are or may be non-GAAP financial/alternative performance measures, as defined in the rules of the SEC or the guidelines of the European Securities and Market Authority (ESMA). They may exclude or include amounts that are included or excluded, as applicable, in the calculation of the most directly comparable financial measures calculated in accordance with IFRS. Accordingly, they should be considered in conjunction with ArcelorMittal's consolidated financial statements prepared in accordance with IFRS, including in its annual report on Form 20-F, its interim financial reports and earnings releases. Comparable IFRS measures and reconciliations of non-GAAP/alternative performance measures thereto are presented in such documents, in particular the earnings release to which this presentation relates.

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Our approach to sustainable development

Sustainable development underpins the Company's purpose: Inventing smarter steels for a better world

• ArcelorMittal is committed to building solutions for the sustainable development of society
• Our10 Sustainable Development (SD) outcomesprovide a compass to describe the business we know we must become
• The Board's Appointments, Remuneration, Corporate
  Governance & Sustainability Committee oversees progress on SD each quarter, chaired by lead independent director
• Materiality is assessed on ongoing basis through bottom up and top down processes. Key issues flagged to ARCGS.

Our operations are underpinned by a programme of independent ESG certification: IRMA and ResponsibleSteel

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ArcelorMittal's disclosures on sustainability

European Climate Action Report

Climate Action Report Integrated Annual Review

Factbook

A-

2019

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Safety is our priority: Remain committed to the journey towards zero harm

Health & Safety of the Company's workforce is of paramount importance

Health and safety performance (LTIF)*

3.1

ArcelorMittal excluding ArcelorMittal Italia 2.5

1.9 1.8

1.4

1.0

• Protecting the health and wellbeing of employees remains the Company's overarching priority with ongoing strict adherence to World Health Organisation guidelines and specific government guidelines have been followed and implemented.
• We continue to ensure extensive monitoring, introduced very strict sanitation practices, continue to enforce social distancing measures at all operations, and have implemented remote working wherever possible and provided essential personal protective equipment to our people.
• Company's efforts to improve the Group's Health and Safety record will continue to focus on further reducing the rate of severe injuries and fatality prevention.

						ArcelorMittal
					including ArcelorMittal Italia**
					1.21
0.85	0.85	0.81	0.82	0.78			0.92
0.69
						0.75		0.60

2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	9M'20
Page 5		* LTIF = Lost time injury frequency defined as Lost Time Injuries per 1.000.000 worked hours; based on own personnel and contractors; A Lost Time Injury (LTI) is an incident
		that causes an injury that prevents the person from returning to his next scheduled shift or work period.

• ArcelorMittal Italia previously known as ILVA. 3Q'20 LTIF rate of 0.95x (incl. ArcelorMittal Italia) vs. 0.77x in 2Q'20 and 1.36x in 3Q'19; LTIF excluding ArcelorMittal Italia of 0.56x in 3Q'20 vs. 0.50x in 2Q'20 and 0.82x in 3Q'19.

Steel in a Low Carbon and Circular Economy

Leadership on climate strategy - overview

• Net zero target by 2050 for the Group made in September '20
• Group CO2 target by 2030 to be published in second global Climate Action report
• Europe target of 30% CO2 reduction by 2030 already in place
• First 'Climate Action in Europe' report released June'20, laying out our roadmap to 2030, in line with the EU's Green Deal.
• Emphasis that effective policy support is critical to the achieving the full potential of the technology we are developing.
• This includes an effective EU Carbon Border Adjustment to ensure a level playing field.
• Customer offering of green steel* by end 2020 rising to 600kt by 2022
• Steel is expected to remain the material of choice for economic development & improved living standards

Net zero across the group by 2050

30% by 2030 in Europe

Page 7	* The Company is offering green steel using a system of certificates. These will be issued by an independent auditor to certify tonnes of CO2 savings achieved through
	the Company's investment in decarbonization technologies in Europe. Net-zero equivalence is determined by assigning CO2 savings certificates equivalent to CO2 per
	tonne of steel produced in 2018 as the reference. The certificates will relate to the tonnes of CO2 saved in total, as a direct result of the decarbonization projects being
	implemented across a number of its European sites

Steel: a permanent material, recycled again and again…

Steel is very easy to recycle - our recycle rate outperforms the materials we compete with

Recycling end of Life

Plastics

Timber

Concrete

Steel

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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Primary steel will continue to be needed to meet global demand until 2100

• Availability of scrap is limited due to its "finite" nature, dependent on disposal at end of life of products, equipment and buildings. Decarbonisation efforts must focus on primary steelmaking.
• • Amount of secondary sources will increase over the coming decades; electricity will become green over this period
  • Still, the world will continue to rely on primary sources to produce steel in 2050
  • Today we use coal and natural gas as energy; steel industry will have to transition to clean energy sources

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*ArcelorMittal estimates

Steel is essential in the energy transition

• Steel intensity in energy sector is increasing with the transition to low carbon sources of energy generation

[ton steel /MW*]

300	CSP

wind

200	coal-fired

nuclear

gas-fired

hydro

100

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* steel consumptions per installed MW capacity

Sustainable development runs throughout our Company

Our purpose is to invent smarter steels for a better world

Our innovations offer our customers solutions to enhance their contribution to a low carbon and circular economy.

• Steligence enables architects and engineers to design building solutions that minimise material use while maximising space, flexibility and end of life recyclability
• Our new S-inmotion® customisable chassis steel solutions enable carmakers to extend range and enhance safety at the most affordable cost.
• Magnelis® offers enhanced corrosion resistance for solar projects in harsh conditions, even in deserts and on water.
• The Company partners with EcoCem to produce low-emissions cement from blast furnace slag
• Offer green steel to customers by way of a certification system linked to CO2 savings, achieved through investment in decarbonization technologies, starting in 2020, with plans to scale up this offer to 600kt by 2022

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Steligence key figures

11%		24%
11% cost savings across facade,		24% saving in construction
stairs and core elements due to		costs due to construction
optimised space and height		speeds twice as fast as
		concrete equivalents

39%

39% foundation cost savings due to steel foundation solutions, weighting less than half equivalent structures

Baseline	Optimised
scenario	steel scenario	Baseline	Optimised
		scenario	steel scenario

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Our climate strategy for low-emissions steelmaking

ArcelorMittal roadmap to low-emissions steelmaking in Europe

2

2
1	Increased use of scrap
1

Two options for primary steelmaking:

2	•	Smart Carbon route with
		hydrogen
2	•	Hydrogen DRI route

Video Link

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Increased use of scrap

scrap

1	INCREASE	BOF	Increase amount of scrap
versus hot metal in BOF
	USE OF		• Operational improvement
	SCRAP	Hot metal	• Pre-melting technology

scrap

Invest in electric arc

EAFfurnace technology to increase steel produced using scrap

Disproportionate increase in scrap consumption in Europe would lead to shift in scrap trade flows, leading to increased iron ore based steel production in laxer CO2 jurisdictions outside of Europe

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Two routes to carbon neutral steel: 1) Smart carbon with hydrogen

Replacing coal, with renewable / recycled carbon

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Two routes to carbon neutral steel: 1) Smart carbon with hydrogen

Smart Carbon provides

Carbon neutral steel

Carbon neutral cement

Recycled carbon materials

Evolving existing Blast Furnace technology, with use of bioenergy and incorporating carbon capture, storage and use; incorporating hydrogen as reductant - longer term this will be green hydrogen

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Smart carbon - our technologies

Torero

Industrial scale demo plant in Ghent, Belgium converting waste biomass into biocoal via two reactors, each producing 40kt bio-coal/yr.

€50m investment cost. Status: under construction Production expected to start via reactor #1 2022 and reactor #2 2024

IGAR

Pilot project in Dunkirk, France to capture waste CO2 and waste hydrogen from steelmaking and convert into reductant gas. €20m project budget Completion expected 2022

Carbalyst (Steelanol)

1. Industrial scale demo plant in Ghent, Belgium capturing carbon off-gases and converting into 80m litres recycled carbon ethanol pa. €165m investment cost
   Status: under construction Production expected to start 2022

3D

Pilot project in Dunkirk, France to capture CO2 off-gases (0.5 metric tonnes of CO2/hour) for transport/storage.

€20m project budget

Completion expected 2021

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Smart carbon - hydrogen in the BF complements circular carbon

• Several projects using increased hydrogen in blast furnaces across Europe, including:
• • BF gas injection across Flat Products sites using H2- containing gases from different sources.
  • Grey hydrogen at Asturias starting in 2021
  • IGAR project Dunkirk using plasma technology to create a reducing gas from waste gases, to enable gas injection in the BF
• A number of other hydrogen projects are planned, pending innovation funding

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Two routes to carbon neutral steel: 2) Hydrogen DRI-based route

H2

HBI

• H2 Hamburg Industrial scale demo producing direct reduced iron via 100% hydrogen at existing plant in Hamburg, Germany to produce 100,000t sponge iron pa. Research project and feasibility study ongoing Production start up expected 2023-5dependent on funding

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Costs- reaching carbon neutrality by 2050?

	Investment		Production cost
	needed		increase
	ArcelorMittal Europe	Clean energy
	steel footprint	infrastructure
Smart Carbon	€15-25 billion	€15-1651 billion	+30-60%1
Innovative DRI route	€30-40 billion	€40-2002 billion	+50%-80%2

1. Lower end of range leveraging bioenergy and carbon capture storage (CCS) infrastructure; high end of range leveraging green hydrogen infrastructure
2. Lower end of range leveraging carbon capture storage (CCS) and blue hydrogen infrastructure; high end of range leveraging green hydrogen infrastructure

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Policy enablers

IEA steel roadmap (October 2020)

• uses Sustainable Development Scenario which envisages limiting global temperature increase to 1.8ºC (66% probability) and so net zero by 2070 for the industry.
• average carbon intensity of steel should fall to 0.6tCO2/ts by 2050 - a 60% reduction in the average sectoral direct CO2 intensity of crude steel since 2019
• acknowledging the challenges for steel companies of adopting higher cost low emissions technologies whilst maintaining competitiveness;
• Level playing field is a 'necessary enabling condition'

"New technology must be deployed at a blistering pace, with new infrastructure to boot."

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Carbon neutral steel

We bring key pieces of the puzzle; but we need policymakers to complete the missing pieces

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Creating an environment where carbon-neutral steel is more competitive than steel that is not carbon-neutral

Policy Landscape- Building key EU policy enablers for low-emissionssteelmaking

SEQUENCE OF SUPPORT

MARKET PULL

• • • Carbon tax for final products
  • 'Net zero steel' product standard
• Carbon performance as purchasing criterion

ESSENTIAL EXTERNAL CONDITIONS

• Access to affordable renewable energy
• Building the necessary infrastructure (capacity)

	FUNDING
Supporting technology innovation:			Incentive for transition investments:
• Innovation Funding			• Compensation for higher structural costs with
			Contract for Difference (needs change of
			State Aid rules)

KEY ENABLERS FOR DECARBONISATION

• Level playing field: Carbon border adjustment

• Focused sustainable finance criteria

• Circular economy rules and progress

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Green steel

New commercial offering:

• Response to rising customer demand for low carbon steel
• ArcelorMittal is now offering green steel*  30kt this year rising to 600kt in 2022
• System of CO2 savings certificates, issued by an independent auditor, equivalent to the CO2 per tonne of steel produced in 2018 as a reference
• CO 2 savings linked to the Group's investments in decarbonization technologies. Starting with Carbalyst and Torero technologies, and increased hydrogen injection in blast furnace.
• The certificates will relate to the tonnes of CO2 saved in total, as a direct result of the decarbonization projects being implemented across a number of its European sites.

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Explosion of net zero collaborations driving commitment, action and change

What stakeholders want to know

What does it

mean to market

responsibly

sourced steel?

How to drive		What does it		What does it		What does it		What does it		What will it take
market		mean to market		mean to finance		mean for a steel		mean to be a net		for the steel
demand for low		steel as a low		activities aligned		company to set		zero aligned		industry to get
carbon steel?		carbon product?		with net zero?		a SBT?		company?		to net zero?

Responsible		Steel Zero		"net zero
	buyers group
Steel			steel"
	ETC

customer expectations

When is my company /product net zero?

		Net Zero Steel
			SBTI Net zero
EU taxonomy		Pathway		principles
		Meth'y Project
			CA100
					benchmark
		SBTI
			ACT

Investor expectations

What portfolio is aligned with net zero?

IEA

Net zero steel roadmaps

ETC

Government expectations

What policies will drive

net zero steel?

Market share		ESG profile				Cost of Finance		ESG screening		Policy support
		Ebidta

Driving the transition

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ArcelorMittal is strategically engaging in all these conversations

ResponsibleSteel

A new global sustainability standard for the steel industry

• Providing a multi-stakeholder forum to build trust and achieve consensus;
• Developing standards, certification and related tools;
• Driving positive change through the recognition and use of responsible steel makers and products.

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• Multi-stakeholderstandard
• Independent assurance and oversight
• Intended to drive up standards over time
• Value to customer and steelmaker

ResponsibleSteel members

Business members

• Anglo-American
• Aperam
• ArcelorMittal
• Australian Steel Mill Services
• BlueScope
• BMW
• Carport Central
• CLN Group
• Daimler
• HARSCO
• HBM Group
• Heathrow
• HSBC
• Lendlease
• Outokumpu
• Tata Group
• Teck
• VAMA
• Venlaw Park
• Voestalpine

Civil society members

• CDP
• Clean Air Task Force (CATF)
• Fauna & Flora International
• IndustriALL
• IUCN
• Mighty Earth
• The Climate Group
• We Mean Business

Associate members

• ACRS
• Afnor Group
• AURA Financial
• Australian Steel Institute
• Better Coal

• CARES
• Challenge Sustainability
• Climate Bond Initiative
• DNV GL
• EGGA
• Equitable Origin
• European Outdoor Group
• Exova - BM Trada
• Green Building Council of Australia (GBCA)
• GUTcert
• HERA
• International Manganese Institute (IMnI)
• International Zinc Association
• IRMA
• Levin Sources
• Lloyds Register Germany GmbH

• MAC-TSM
• MERG
• Mineria Responsable Consultores
• Pacific Institute
• RTQMS
• Russian Academy of Sciences - Institute of Geography
• Sourcemap
• Steel Research & Technology Mission of India
• Sustainability Assurance Services (SAS) Global
• Sustainable Steel Council
• Track Record Global
• United Certification Systems (UCS)
• University of Waterloo

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Twelve principles

Governance

Principles

1. Corporate Leadership
2. Social, Environmental, Governance Management Systems

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Social

Principles

1. Occupational Health and Safety
2. Labour Rights
3. Human Rights
4. Local Communities

7. Stakeholder Engagement and Communication

12. Decommissioning and Closure

Environment

Principles

1. Climate Change and Greenhouse Gas Emissions
2. Noise, Emissions, Effluents
   and Waste
3. Water Stewardship
4. Biodiversity

ArcelorMittal commits to ResponsibleSteel Site Certification

Target: all Europe Flat sites to be ResponsibleSteel certified by end 2021.

"Responsible production techniques and standards have become increasingly

important to our customers and

consumers. It's at the heart of how we do business, giving our customers the reassurance that we meet their sustainability expectations."

Geert Van Poelvoorde, CEO

ArcelorMittal Europe - Flat Products

	Bremen
Gent	Geel	Eisenhüttenstadt ZKZ	Chorzow
	Dabrowa Gornicza
Dunkerque	Genk			Krakow
Dèsvres	Liège	Swietochlowice
Mardyck Mouzon			Sosnowiec
Montataire	Florange

Basse-Indre

Asturias	St. Chély
	Sestao

Etxebarri Fos

Lesaka

Sagunto

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ResponsibleSteel will work with mining certification schemes

ArcelorMittal Mining has committed to IRMA certification of all marketable sites by 2025

ArcelorMittal Mining Canada has already achieved assurance against TSM

We have asked our top suppliers of coal and iron ore to join one of these schemes.

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Appendix

Torero

Reducing iron ore with waste carbon

• Developing our first industrial-scale Torero demonstration	Torero technology
plant in Ghent, Belgium, with two reactors

• Targets the production of 'circular carbon' inputs, such as bio-coalfrom waste wood to displace the fossil fuel coal currently injected into the blast furnace
• €50 million investment; aims to convert 120,000 tonnes of waste agricultural and forestry residues into bio-coal annually
• Production via first reactor expected 2022; and via second reactor 2024
• Future projects would see expansion of sources of circular carbon to other forms of bio- and plastic waste

A 'smart carbon' technology

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Carbalyst®

Capturing carbon gas and recycling into chemicals

• Working with LanzaTech in Ghent, Belgium, to build first	Carbalyst® technology
industrial-scale demonstration plant to capture carbon off-
gases from the blast furnace and convert into a range of
Carbalyst® recycled carbon products

• Project started in 2018; €165m investment cost; completion expected 2022; will capture ~15% of available waste gases and convert into 80m litres of ethanol annually
• LCA studies predict a CO2 reduction of up to 87% from Carbalyst® bio-ethanolcompared with fossil transport fuels
• This alone has the potential to reduce CO2 emissions equivalent to 100,000 electrical vehicles on the road or 600 transatlantic flights annually

A 'smart carbon' technology

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IGAR: reforming carbon to reduce iron ore

Reforming carbon from waste gases or plastics to reduce iron ore

• The IGAR pilot project aims to capture waste CO2 from the blast furnace and convert it into a synthetic gas (syngas) that can be reinjected into the blast furnace in place of fossil coal.
• In Dunkirk, ArcelorMittal is running a €20 million project, supported by the French ADEME, to construct a form and test the syngas.
• Future plans to reform waste plastics

The IGAR process

A 'smart carbon' technology

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H2 Hamburg

Reducing iron ore with hydrogen via the DRI

• Industrial scale demonstration project at our Hamburg site	Reducing iron ore with hydrogen

• Innovative DRI installation on 100% pure hydrogen for the direct reduction of iron ore for the steel production process
• Installation will generate hydrogen from natural gas and/or from the waste gases at the existing plant and demonstrate the hydrogen technology with an annual production of 100,000 tonnes of iron per year
• In the future, the plant should also be able to run on green hydrogen (generated from renewable sources) when it is available in sufficient quantities at affordable prices.
• Production start up expected 2023-5 dependent on funding

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Carbon capture: capturing fossil fuel carbon for storage or reuse

"Carbon2Value"	Carbon Capture & Storage

• Developing cost-effective technologies to capture and separate CO2 from our waste gases, and liquefy it for subsequent transport and storage or reuse.
• Combining this with a circular carbon energy input would further reduce CO2 emissions.
• A pilot plant to capture CO2 has been built in Gent, together with DOW Chemicals as part of the Carbon2Value project.

"3D"

• €20m pilot project in Dunkirk, France to capture CO2 (0.5 metric tonnes of CO2/hour) for transport/storage using only low-temperature waste heat.
• Completion expected 2021

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Policy requirements- the 'missing pieces'

The medium-term market conditions needed include:

• Creating an environment where carbon-neutral steel is more competitive than steel which is not carbon neutral
• A fair competitive landscape that accounts for the global nature of the steel market, addressing domestic, import and export steel dynamics, as well as the distinction between primary and secondary sources to make steel.
• Access to finance: innovation funding and compensation for high costs of roll out.
• Access to abundant, affordable clean energy: the scale of the steel industry's energy needs are such that concerted cross-sector and government efforts will be required to develop the necessary clean energy infrastructure.
• Public instruments to accelerate innovative technology deployment to transition to carbon neutral steelmaking.

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The European Green Deal as the EU's recovery strategy

Funding for low carbon transition:

• Innovation fund (€10bn for 7yrs) - ArcelorMittal has made several applications
• Existing initiatives - SPIRE (energy); Clean Steel Partnership / Horizon Europe (steel)
• IPCEI - additional funding for steel to overcome obstacles to roll out
• EU has identified Carbon Border Adjustment as source of budget funding
• Revision of State Aid guidelines under consideration to enable support mechanisms for industry transition e.g. Contracts for Difference

Focus on core steel markets:

• Construction: Renovation in buildings & infrastructure and a more circular economy
• Renewable energy projects: wind, solar, kick-starting clean hydrogen economy
• Automotive industry:

• 1. Purchasing facility for clean vehicles to reduce CO2 / pollutant emissions in line with EU standards
  1. Clean automotive investment fund to accelerate investments in zero-emission drive trains
  1. Doubling EU investment on electric car recharging infrastructure
• Mobility:
• 1. Rails investment (€40bn): Rolling stock/ development of corridors for passengers and freight

o Urban mobility cycling, public and individual transport

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Significant stimulus deployed

EU: Automotive stimulus package

France

• Increased subsidies: ex €7k for individual to buy EV and €5K for corporate; subsidies to change vehicles (ICE or EV);
• Relocalisation and support for local EV production  Target 1 Million EV/yr by 5 years

Germany

• €130bn for all economy
• €6K euro incentive for battery electric cars costing <€40K
• Passenger car incentives: lowering VAT to 16% from 19%
• Motor vehicle tax reform. From Jan'21, cars with an emission of >95 grams/CO2 per/km face staggered tax

. Page 42

Our approach to Human rights: through the lens of management control

Supply chain

• Oversight by Corporate CR + Procurement
• Due diligencefor core suppliers
• Most salient risks are here
• Target for IRMA, TSM and Responsible Steel certification (human rights requirements)

Safety

• Head of H&S reports to CEO office
• Joint H&S Committee with unions
• Tools e.g. HIRA, shop floor audits, shift by shift safety talks:
• Safety Leadership and Take Care training
• PSIF detection, analysis and reporting
• Site level action plans

Labour

• Oversight by EVP for HR and Global HR Council
• Led by HR at segment or country level
• HR terms and conditions (country level)
• Disclosure on strikes>5 days
• Collective bargaining agreements for 95% workforce
• European Works Council etc

Diversity &

Inclusion

• Oversight by EVP for HR
• D&I corporate working group
• D&I strategy at country level
• 3 x Gender KPIs on women in recruitment, succession, management

Community

• Led by CEO at country or site level
• Principles of community engagement
• Security Personnel Policy on the use of Force, Arms and Firearms
• Grievance mechanisms

	Code for	Health &	Employee	Diversity &	Stakeholder
	Responsible	safety	relations	inclusion	engagement
	Sourcing	policy	policy	policy	guidance

Human rights policy and training

Identification of human rights-related risks

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ARCGS Board oversight