Annual Report 2019 Contains a Full Overview of Its Corporate Stakeholder Expectations As Well As Long-Term Trends Governance Practices

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Annual Report 2019 Contains a Full Overview of Its Corporate Stakeholder Expectations As Well As Long-Term Trends Governance Practices Table of Contents Management report Company overview ............................................................................................................................................................................... 4 Business overview ................................................................................................................................................................................ 5 Disclosures about market risk ............................................................................................................................................................... 44 Group organizational structure ............................................................................................................................................................. 47 Key transactions and events in 2019 .................................................................................................................................................... 50 Recent developments ........................................................................................................................................................................... 53 Research and development .................................................................................................................................................................. 54 Sustainable development ..................................................................................................................................................................... 57 Corporate governance .......................................................................................................................................................................... 67 Luxembourg takeover law disclosure .................................................................................................................................................... 108 Additional information ........................................................................................................................................................................... 110 Chief executive officer and chief financial officer’s responsibility statement .......................................................................................... 113 Consolidated financial statements for the year ended December 31, 2019 .......................................................................................... 114 Consolidated statements of operations ................................................................................................................................................. 115 Consolidated statements of other comprehensive income .................................................................................................................... 116 Consolidated statements of financial position ....................................................................................................................................... 117 Consolidated statements of changes in equity ...................................................................................................................................... 118 Consolidated statements of cash flows ................................................................................................................................................. 119 Notes to the consolidated financial statements ..................................................................................................................................... 120 Report of the réviseur d’entreprises agréé - consolidated financial statements .................................................................................... 240 Annual report of ArcelorMittal parent company for the year ended December 31, 2019 ....................................................................... 245 Management report .............................................................................................................................................................................. 246 Chief executive officer and chief financial officer’s responsibility statement .......................................................................................... 248 Financial statements of ArcelorMittal parent company for the year ended December 31, 2019 ............................................................ 249 Statements of financial position ............................................................................................................................................................ 250 Statements of operations and statements of other comprehensive income .......................................................................................... 251 Statements of changes in equity ........................................................................................................................................................... 252 Statements of cash flows ...................................................................................................................................................................... 253 Notes to the financial statements .......................................................................................................................................................... 254 Report of the réviseur d’entreprises agréé – financial statements ........................................................................................................ 303 Risks related to the global economy and the mining and steel industry ................................................................................................ 308 Mining ................................................................................................................................................................................................... 327 4 Management report Company overview other countries, such as Kazakhstan, South Africa and Ukraine. In addition, ArcelorMittal’s sales of steel products History and development of the Company are spread over both developed and developing markets, which have different consumption characteristics. ArcelorMittal is the world’s leading integrated steel and ArcelorMittal’s mining operations, present in North and mining company. It results from the merger in 2007 of its South America, Africa, Europe and the CIS region, are predecessor companies Mittal Steel Company N.V. and integrated with its global steel-making facilities and are Arcelor, each of which had grown through acquisitions over important producers of iron ore and coal in their own right. many years. Since its creation ArcelorMittal has experienced periods of external growth as well consolidation Products: ArcelorMittal produces a broad range of high- and deleveraging (including through divestments), the latter quality finished and semi-finished steel products (“semis”). in particular during the years following the global financial Specifically, ArcelorMittal produces flat steel products, and economic crises of 2008-2010. In recent years including sheet and plate, and long steel products, including ArcelorMittal has punctuated its overall deleveraging focus bars, rods and structural shapes. In addition, ArcelorMittal with targeted acquisitions. These have included the produces pipes and tubes for various applications. acquisition through a joint venture of the Calvert plant in the ArcelorMittal sells its steel products primarily in local United States in 2014 and, in 2018 the acquisition of AMSF markets and through its centralized marketing organization in Brazil and ArcelorMittal Italia in Italy, Europe's largest to a diverse range of customers in approximately 160 single steel site. In 2019, the Company completed its countries including the automotive, appliance, engineering, acquisition of AMNS India through a joint venture with NSC. construction and machinery industries. The Company also For more information on the key transactions carried out in produces various types of mining products including iron ore 2019, see “—Key transactions and events in 2019” below. lump, fines, concentrate and sinter feed, as well as coking, PCI and thermal coal. ArcelorMittal's success is built on its core values of sustainability, quality and leadership and the entrepreneurial As a global steel producer, the Company is able to meet the boldness that has empowered its emergence as the first needs of different markets. Steel consumption and product truly global steel and mining company. Acknowledging that a requirements clearly differ between developed markets and combination of structural issues and macroeconomic developing markets. Steel consumption in developed conditions will continue to challenge returns in its sector, the economies is weighted towards flat products and a higher Company has adapted its footprint to the new demand value-added mix, while developing markets utilize a higher realities, redoubled its efforts to control costs and proportion of long products and commodity grades. To meet repositioned its operations with a view toward outperforming these diverse needs, the Company maintains a high degree its competitors. ArcelorMittal’s research and development of product diversification and seeks opportunities to capability is strong and includes several major research increase the proportion of higher value-added products in its centers as well as strong academic partnerships with product mix. universities and other scientific
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