2 May 2018 - ArcelorMittal ('the Company'), the
world's leading steel and mining company, today publishes its 2017
integrated online annual review, 'Shaping the future of steel'. The
review marks the completion of the Company's journey to fully
integrated reporting, combining operational and financial
performance reporting with progress made against its sustainable
development (SD) framework, ArcelorMittal's 10 SD Outcomes.
The review, which can be accessed online at
http://annualreview2017.arcelormittal.com includes videos of
several members of ArcelorMittal's senior management team,
including Chairman and CEO, Lakshmi Mittal, and President, Group
CFO and ArcelorMittal Europe CEO, Aditya Mittal. Topics covered
include:
- 2017 financial performance; progress made in the
second year of the Company's five-year strategic plan, Action 2020;
how the Company further strengthened its balance sheet, and its new
capital allocation framework;
- A review of the drivers behind 2017 global steel
market dynamics, and the Company's view on market outlook for the
current year;
- The three core sustainable development goals that
the Company has outlined:
i) accelerating steel's role in a low-carbon
circular economy, including how ArcelorMittal is addressing its
carbon challenge
ii) working with customers on product innovation for sustainable
development
iii) building trusted supply chains that meet its customers' needs,
by assuring the steel they buy - and the raw material used to
produce it - meets credible sustainability standards;
- How the Company is embracing digitalisation and
Industry 4.0 to gain a competitive advantage;
- The actions ArcelorMittal is taking to adapt to
long-term mega-trends and disruptions and identify opportunities
for its business.
Commenting, Lakshmi Mittal,
said:
"Last year was a positive year for the global
steel industry, and for ArcelorMittal. Global steel demand in 2017
saw the strongest growth since 2013, and with structural supply
side reform, this drove higher utilisation rates and improved steel
prices and spreads.
"The better market conditions and
the progress we delivered against our Action 2020 plan helped us to
deliver a strong financial performance. Our Ebitda was $8.4
billion. And our net income of $4.6 billion was the highest level
since the financial crisis. We also reduced net debt to $10.1
billion - the lowest level in ArcelorMittal's history.
"Our Action 2020 strategic plan
was designed to create a positive competitive gap between
ArcelorMittal and our competitors. We are two years into the
five-year plan and we are already halfway to hitting our additional
$3 billion Ebitda target. We have a lot to be pleased about with
our financial performance in 2017.
"Given the strong progress we
have made in strengthening our balance sheet in recent years, we
have been able to look at other ways to grow our business. A good
example of this in 2017 was our agreement with the Italian
government to acquire Ilva, Europe's largest steel production
facility. It is an exciting acquisition that will bring a lot of
value to our European business. I am confident that the significant
investment plans we have outlined, alongside the value we bring
through our steelmaking knowledge and experience, will support
substantial improvement in Ilva's performance.
"We also need to ensure we are
well positioned for long-term success. As the world continues to
develop, it will need more steel. And there is no better material
than steel to align with the concept of the circular
economy.
"To ensure long-term sustainable
success we must also continue to innovate to meet customer demands
and respond to social and environmental trends. Customers are
placing an increasing focus on ensuring the steel we produce helps
them to meet their environmental and sustainability goals. The work
our world-class research and development teams do is critical in
meeting their product needs. And the leading role we are playing in
the development of industry-wide supply chain assurance schemes has
an important role to play in helping us develop a further
competitive advantage.
"I am optimistic about the
future. Global steel market conditions remain healthy and
financially, ArcelorMittal has never been stronger. We have some
exciting opportunities to strengthen and grow our business, and I
am confident we are well positioned to build on the progress we
made in 2017."
Key highlights of ArcelorMittal's sustainable
development progress in 2017 include:
- Considerable progress in lost-time injuries.
Overall the rate for the group declined to 0.78 incidents per
million hours worked, from 0.81 in 2016. Several sites
demonstrated outstanding safety performance, including Fire Lake
(Canada), Princeton (USA), and Serra Azul (Brazil). At the same
time, the Company is committed to achieving its goal of zero
accidents and zero fatalities.
- Continued to take a leading role in the
development of ResponsibleSteel(TM), a multi-stakeholder initiative
to create a common, trusted, social and environmental certification
standard for steel, and the raw materials used to produce it,
working to forge links with other assurance schemes, such as
Towards Sustainable Mining (TSM). The Company has committed to
rolling out TSM standards across its marketable mines over the next
four years.
- Recognition of the importance of making
substantial reductions in carbon emissions, and the potential to do
so. The Company has undertaken the economic and technical analysis
to support this workstream and is optimistic about the potential
for breakthrough technology to substantially cut the carbon
emissions in steelmaking, providing that the necessary conditions
are in place
- Responding to the Task Force on Climate-related
Disclosures, with expanded disclosures in this year's integrated
report
- Mapping the UN's Sustainable Development Goals
for the Company's 10 SD outcomes, and which goals the Company
contributes to.
- Continued value creation for stakeholders,
demonstrated in the Company's value creation model, which shows the
interdependency of the resources and investments needed to create
steel, financial and other forms of stakeholder value. Examples
include:
- US$68 billion in direct economic contributions
to employees, suppliers and other stakeholders, including US$9
billion paid in salaries, over US$50 billion paid to the Company's
supply chain and US$5 billion paid in a variety of taxes
- 42 new products launched, aimed at creating sustainable
development value
- 5.8% reduction in CO2 per tonne of
steel produced by the group, from a 2007 baseline
- 46 million tonnes of CO2 emissions
avoided due to recycling of scrap and slag
- 52% less dust, 18% less NOx and 32% less SO2 emitted
per tonne of steel since the Company first reported in 2007.
- Transparency over stakeholder concerns relating
to the environment, and an outline of a number of related
environmental investment programmes.
ENDS
About
ArcelorMittal
ArcelorMittal is the world's
leading steel and mining company, with a presence in 60 countries
and an industrial footprint in 18 countries. Guided by a philosophy
to produce safe, sustainable steel, we are the leading supplier of
quality steel in the major global steel markets including
automotive, construction, household appliances and packaging, with
world-class research and development and outstanding distribution
networks.
Through our core values of
sustainability, quality and leadership, we operate responsibly with
respect to the health, safety and wellbeing of our employees,
contractors and the communities in which we operate.
For us, steel is the fabric of
life, as it is at the heart of the modern world from railways to
cars and washing machines. We are actively researching and
producing steel-based technologies and solutions that make many of
the products and components people use in their everyday lives more
energy efficient.
We are one of the world's five
largest producers of iron ore and metallurgical coal. With a
geographically diversified portfolio of iron ore and coal assets,
we are strategically positioned to serve our network of steel
plants and the external global market. While our steel operations
are important customers, our supply to the external market is
increasing as we grow.
In 2017, ArcelorMittal had
revenues of $68.7 billion and crude steel production of 93.1
million metric tonnes, while own iron ore production reached 57.4
million metric tonnes.
ArcelorMittal is listed on the
stock exchanges of New York (MT), Amsterdam (MT), Paris (MT),
Luxembourg (MT) and on the Spanish stock exchanges of Barcelona,
Bilbao, Madrid and Valencia (MTS).
For more information about
ArcelorMittal please visit: http://corporate.arcelormittal.com/
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Contact information ArcelorMittal Investor
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Contact information ArcelorMittal Corporate
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ArcelorMittal Corporate
Communications |
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Paul Weigh |
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France |
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Sylvie Dumaine / Anne-Charlotte Creach |
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