Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 40

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 40
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, macroeconomic trends (such as global or regional recessions or economic shocks) or trends in credit and capital markets more generally. The margin under ArcelorMittal’s principal credit facilities and certain of its outstanding bonds is subject to adjustment in the event of a change in its long-term credit ratings, and downgrades that occurred in the past resulted in increased interest expense. Restrictive covenants in ArcelorMittal’s debt instruments (current or future) may limit ArcelorMittal’s operating and financial flexibility. Failure to comply with any covenant would enable the lenders to accelerate ArcelorMittal’s repayment obligations . In addition, the mere market perception of a potential breach of any financial covenant, to the extent in effect, could have a negative impact on ArcelorMittal’s ability to refinance its indebtedness on acceptable conditions. In addition to the foregoing specific risks relating to ArcelorMittal’s indebtedness, the prices of its securities may be affected by the markets’ perception of its leverage or any potential financial transactions, such as equity offerings, which may be implemented to increase financial flexibility. ArcelorMittal’s ability to fully utilize its recognized deferred tax assets depends on its profitability and future cash flows. At December 31, 2024, ArcelorMittal had $ 8.9 billion recorded as deferred tax assets on its consolidated statement of financial position, representing a $0.6 billion decrease as compared to December 31, 2023 . The deferred tax assets can be utilized only if, and only to the extent that, ArcelorMittal’s operating

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| Management report |

subsidiaries generate adequate levels of taxable income in future periods to offset the tax loss carry forwards and reverse the temporary differences prior to expiration. At December 31, 2024, the amount of future income required to recover ArcelorMittal’s deferred tax assets of $ 8.9 billion was at least $ 39.3 billion at certain operating subsidiaries. ArcelorMittal’s ability to generate taxable income is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond its control. If ArcelorMittal generates lower taxable income than the amount it has assumed in determining its deferred tax assets, then the value of deferred tax assets will be reduced. In addition, assumptions regarding the future recoverability of deferred tax assets depend on management’s estimates of future taxable income in accordance with the tax laws applicable to ArcelorMittal’s subsidiaries in the countries in which they operate. If in