Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 452

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 452
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 OPEB plans, ArcelorMittal is exposed to a number of risks, the most significant of which are detailed below: Changes in bond yields An increase in corporate bond yields will decrease plan liabilities, however it will decrease simultaneously the value of the plans’ bond holdings. Asset volatility The plan liabilities are calculated using a discount rate set with reference to corporate bond yields; if plan assets underperform this yield, this will create a deficit. In most countries with funded plans, plan assets hold a significant portion of equities, which are expected to outperform corporate bonds in the long-term but contribute to volatility and risk in the short-term. As the plans mature, ArcelorMittal intends to reduce the level of investment risk by investing more in assets that better match the liabilities. However, ArcelorMittal believes that due to the long-term nature of the plan liabilities, a level of continuing equity investment is an appropriate element of a long-term strategy to manage the plans efficiently. Life expectancy Most plans provide benefits for the life of the covered members, so increases in life expectancy will result in an increase in the plans’ benefit obligations.

283

| Consolidated financial statements                          |
| (millions of U.S. dollar, except share and per share data) |

Assumptions regarding future mortality rates have been set

considering published statistics and, where possible,

ArcelorMittal’s own experience.

The current longevity at retirement underlying the values of the

defined benefit obligation was approximately 23years .

Healthcare cost trend rate

The majority of the OPEB plans’ benefit obligations are linked to

the change in the cost of various health care components.

Future healthcare cost will vary based on several factors

including price inflation, utilization rate, technology advances,

cost shifting and cost containing mechanisms. A higher

healthcare cost trend would lead to higher OPEB plan benefit

obligations.

Sensitivity analysis

The following information illustrates the sensitivity to a change of the significant actuarial assumptions related to ArcelorMittal’s pension

plans (as of December 31, 2024, the defined benefit obligation for pension plans was 4,614 ):

|                                                          | Effect on 2025 Pre-Tax Pension Expense(sum of service cost and interest cost) |     | Effect on December 31, 2024 DBO |
|:---------------------------------------------------------|------------------------------------------------------------------------------:|:----|--------------------------------:|
| Change in assumption                                     |                                                                               |     |                                 |
| 100basis points decrease in discount rate                |                                                                           -