Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 25

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 25
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 additional charges in the future). For further information on these risks, see notes 1.3 and 5.3 to the consolidated financial statements. The imposition of extensive sanctions on Russia by the EU, the U.S., the UK and other countries could affect the Company’s sourcing of raw materials from sanctioned countries. Any business conducted in Russia and with Russian counterparties also carries the risk of non-compliance with economic sanctions (and the attendant financial and reputational adverse consequences), despite best efforts to comply. In addition, sanctions may remain in place beyond the duration of any military conflict and have a long-lasting impact on the region and could adversely impact the Company’s results of operations and financial condition. More generally the conflict could have a further material adverse effect on the overall macroeconomic environment (see “Volatility in the supply and prices of raw materials, energy and transportation, and volatility in steel prices or mismatches between steel prices and raw material prices could adversely affect ArcelorMittal’s results of operations”). The conflict could escalate militarily both regionally and globally; any substantial escalation would have a material adverse effect on macroeconomic conditions. Competition from other materials and alternative steel- based technologies could reduce market prices and demand for steel products and thereby reduce ArcelorMittal’s cash flows and profitability. In many of its applications, steel competes with other materials that may be used as substitutes, such as aluminum, concrete, composites, glass, plastic and wood. In particular, as a result of increasingly stringent regulatory requirements, as well as developments in alternative materials, designers, engineers and industrial manufacturers, especially those in the automotive industry, have increased their use of lighter weight and alternative materials, such as aluminum and plastics. A loss of market share to substitute materials, increased government regulatory initiatives favoring the use of alternative materials, as well as the development of additional new substitutes for steel products could significantly reduce market prices and demand for steel products and thereby reduce ArcelorMittal’s cash flows and profitability. New technologies such as carbon free steelmaking could also result in a loss of market share if competitors develop and deploy this kind of technology before, or more effectively than ArcelorMittal. In addition, to the extent regulatory requirements and/or customer demand for low carbon or carbon neutral steel increase, competition with respect to low CO 2 steel technologies may become more significant, leading to substantial input cost increases.

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| Management report |

II. Risks related to sustainability T he Group’s announced carbon emissions intensity reduction targets were based on assumptions with respect to the costs