John Brett Category, We Are Failing in the Most Important Safety Metric – a Fatality-Free Company

September/October 2020 Vol. 13, No. 5 No. 13, Vol. 2020 September/October ArcelorMittal USA 1 Company 1 Community1 Company 1 Magazine 03 John Brett: Looking at COVID-19 and beyond 04 04 06 07 Automotive demand Innovation on the road Safety from the sky Seeing the light COVID-19 and beyond Steel highway barrier an Getting a bird’s-eye view Saving money and energy alternative to concrete of Minorca at I/N Tek and I/N Kote 08 09 10 11 Life getting to you? Then and now Supporting students History of Steel Our EAP can help From bed tester during COVID-19 From the stars to Hoover Dam to Burns Harbor Our partners get creative 2 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | September/October 2020 > Global News A difficult quarter, a difficult year However, the fact that people we took the decision to further improvement, but the shape and Lakshmi Mittal are dying while working in our reduce our debt by raising $2 pace of the recovery remains plants is a matter of real concern billion from the market. We are uncertain. We may have to and leaves me to conclude that now very close to our net debt examine whether additional In late July, we announced our our safety standards and golden target of $7 billion. structural changes are required. results for the second quarter and rules are still not fully integrated When it comes to the Although our focus has first half of the year. The results everywhere. I know that many of evolution of the virus, there are very much been on addressing confirm what we said in May – you are making enormous efforts also some positive developments the challenge COVID-19 has that our earnings ability in the when it comes to safety and this even if the situation remains presented, we must also ensure second quarter concerning in we continue to address the would be some regions. long-term trends which will shape significantly Lockdowns have our industry for years to come. impacted by “ While all our numbers been lifted in Climate change is the most the lockdown some countries, prominent. We recently published measures compare unfavorably with particularly in our Europe carbon report which introduced globally Europe, with set out our roadmap to reduce to contain both the first quarter and governments emissions by 30% by 2030 and COVID-19. Our announcing be net zero by 2050. We are second quarter initiatives to developing two distinct technol- EBITDA (Earnings the same period last year, encourage and ogy routes incorporating smart Before Interest Tax stimulate carbon, hydrogen and carbon Depreciation and given the realities of the economic capture and storage that we Amortization) was recovery. Last believe will enable us to achieve US$707 million, operating environment, week, the EU net zero steel production. The with EBITDA for (European Union) potential is real, but as a globally the first half at approved a nearly traded material, we must be able US$1.7 billion. the business has $887 billion to be competitive everywhere we Unsurprisingly, recovery fund. operate. That means if one region shipments in the delivered a resilient From this and takes a tougher approach to second quarter the $1.3 trillion climate change – as Europe has declined by 24% performance thanks to 2021-2027 – then it should introduce compared with the budget, $650 mechanisms to ensure its steel first quarter to billion will be industry can bear the higher cost 14.8 million metric the effort of all our teams.“ allocated for that will be required to produce tons: with sales green projects. green steel and remain competi- down 26% over the same period is apparent when looking at the And having now had four months tive. I very much hope that to US$10.9 billion. All segments results in some segments. But to study the virus, scientists and ArcelorMittal can demonstrate reported a quarterly EBITDA we need to see these results medical experts have a better to the world that low carbon decline, except mining, where everywhere. Across the business, understanding of how it behaves steelmaking is possible. But it will the impact of COVID-19 has we need to identify the gaps been comparatively minimal. that exist in safety performance While all our numbers compare and act swiftly to address them. unfavorably with both the first This must be the first priority “ Across the business, quarter and the same period last for everyone. year, given the realities of the Taking everything into we need to identify the operating environment, the account, there is no doubt it has business has delivered a resilient been a very challenging first half gaps that exist in safety performance thanks to the effort of the year. In fact, I would go as of all our teams. far as to say it has been the most The most tragic develop- challenging six months I have seen performance and act ment is that we have now lost in my 50 years in the steel 33 colleagues to the virus. There industry. Even in such stressed swiftly to address them. can be no greater reminder of the market conditions however, there Lakshmi Mittal is Chairman and CEO of ArcelorMittal. danger of this virus than when we are some positives which we This must be the first priority for everyone.“ “ Going into COVID-19, and how potentially it can be require additional policy support Our 10 sustainable we already had a treated, with every effort being to do so – we will continue to made to accelerate the readiness work hard to make this a reality. strong balance sheet of an effective vaccine. I am confident we can development outcomes I know however that not all succeed with this, as with any of you will feel the worst is behind challenge, because across our and, following the first us and that in some countries group we have strong teams there is a still a real struggle to with great people. We will look Our 10 sustainable development quarter results, we took bring the virus under control. forward together, harnessing our outcomes are how we will And all of us, wherever we live, experience and skills to invent the decision to further face the reality that the virus the smarter steels we know are contribute to making a more is still with us, with new cases required for a better world and sustainable future, from the way recorded every day. This ensure ArcelorMittal remains the reduce our debt by necessitates new levels of care world’s leading steel company. we make steel and use resources, when it comes to protecting I have really noticed during these raising $2 billion from ourselves, our colleagues and our past months the teamwork and to how we develop new products and families. I have said it before, and collaboration across the business support our people and our communities. the market. We are now I will say it again – please do – everyone working together to very close to our net 1 Safe, healthy, quality working lives “ We must also accept for our people debt target of $7 billion.“ that the economic fallout 2 Products that accelerate more sustainable lose family, friends or colleagues. should not lose sight of. We have from COVID-19 is likely lifestyles My sincerest condolences to all done a good job at responding of you who have lost loved ones. swiftly and effectively across the 3 Products that create sustainable We also lost five colleagues in organization, temporary idling to be considerable. infrastructure work-place accidents in the assets and reducing fixed costs. quarter with a further colleague And the benefit of diversification We are unlikely to see 4 Efficient use ofresources and high dying in July, taking the total is clear through the performance number of fatalities for the year of our mining business. Going the V-shape recovery recycling rates to nine. The LTIF improved in into COVID-19, we already the second quarter to a record had a strong balance sheet and, 5 Trusted user of air, land and water 0.5x which is a very good result. following the first quarter results, everyone was hoping 6 Responsible energy user that helps for at the beginning of create a lower carbon future “ I very much hope the pandemic.“ 7 Supply chains that our customers trust that ArcelorMittal can follow all the recommendations find solutions and deliver good 8 Active and welcomed member demonstrate to the both at work and outside work. results in the face of adversity. community Your behavior is very important I remain very proud of the efforts of the – maintain distance, wear a mask made by everyone and would like 9 scientists and engineers world that low carbon when it makes sense to do so to take this opportunity again Pipeline of talented and accept these recommenda- to thank you for your hard work, for tomorrow steelmaking is possible. tions are in place for our benefit flexibility and commitment. I am and safety. very proud of our people and 10 Our contribution to society measured, We must also accept that we will look forward together But it will require additional the economic fallout from to better times ahead. shared and valued COVID-19 is likely to be consider- Keep well and remember policy support to do so – able. We are unlikely to see the nothing is more important than All underpinned by transparent good governance. V-shape recovery everyone was your health and safety, in all we will continue to work hoping for at the beginning of aspects of work and life.

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