Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 431

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 431
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 the amount of capital required on the basis

of annual business and long-term operating plans which include

capital and other strategic investments. The funding requirement

is met through a combination of equity, bonds and other long-

term and short-term borrowings.

The Company monitors capital using a gearing ratio, being the

ratio of net debt as a percentage of total equity.

|              | December 31, |     |        |
|              |         2024 |     |   2023 |
| Total equity |       51,286 |     | 56,068 |
| Net debt     |        5,079 |     |  2,898 |
| Gearing      |         9.9% |     |   5.2% |

Interest rate risk

The Company is exposed to interest rate risk on short-term and

long-term floating rate instruments and on refinancing of fixed

rate debt. The Company's policy is to maintain a balance of

fixed and floating interest rate borrowings, which is adjusted

dep ending on the prevailing market interest rates and outlook.

A s at December 31, 2024 , the long-term debt was comprised of

85% fixed rate debt and 15% variable rate debt (note 6.1.2). The

Company may utilize certain instruments to manage interest

rate risks. Interest rate instruments allow the Company to

borrow long-term at fixed or variable rates, and to swap the rate

of this debt either at inception or during the lifetime of the

borrowing. The Company and its counterparties exchange, at

predefined intervals, the difference between the agreed fixed

rate and the variable rate, calculated on the basis of the notional

amount of the swap. Similarly, swaps may be used for the

exchange of variable rates against other variable rates.

Foreign exchange rate risk

The Company is exposed to changes in values arising from

foreign exchange rate fluctuations generated by its operating

activities. Because a substantial portion of ArcelorMittal’s

assets, liabilities, sales and earnings are denominated in

currencies other than the U.S. dollar (its reporting currency),

ArcelorMittal has an exposure to fluctuations and depreciation in

the values of these currencies relative to the U.S. dollar. These

currency fluctuations, especially the fluctuation of the value of

the U.S. dollar relative to the euro, the Canadian dollar, Brazilian

real, Polish Zloty, South African rand, Mexican peso and

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