Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 219

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 219
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 receivables sold is recorded as a sale of financial assets and the balances are removed from the consolidated statements of financial position at the moment of sale. As part of the Company’s ongoing efforts to improve its working capital position, it continually engages with its customers and suppliers with the aim of improving overall terms, including pricing, quality, just in time delivery, discounts and payment terms. Trade accounts payable have maturities from 15 to 180 days depending on the type of material, the geographic area in which the purchase transaction occurs and the various contractual agreements. The Company’s average outstanding number of trade payable days amoun ted to 83 over the last 5 years. The ability of suppliers to provide payment terms may be dependent on their ability to obtain funding for their own working capital needs and or their ability to early discount their r eceivables at their own discretion (the Company estimates that about $2.8 billion of trade payables were subject to early discount by its suppliers in 2024 as compared to $2.9 billion in 2023). Given the n ature and large diversification of its supplier base the Company does not expect any material impact to its own liquidity position as a result of suppliers not having access to liquidity. As of December 31, 2024, a 5-day reduction in trade payable days would result in a trade payables decrease by $632 million. ArcelorMittal's material cash requirements in the near and medium term The Company's cash requirements in the near and medium term are primarily driven by the current commitments, obligations and other arrangements in place as of December 31, 2024. ArcelorMittal has various purchase commitments for materials, supplies and capital expenditure incidental to the ordinary course of business. As of December 31, 2024, ArcelorMittal had various outstanding obligations mostly related to: • Guarantees, pledges and other collateral related to financial debt and credit lines given on behalf of third parties and joint ventures, • Capital expenditure commitments mainly related to commitments associated with investments in expansion and improvement projects by various subsidiaries, • Other commitments comprising mainly commitments incurred for gas supply to electricity suppliers. These commitments, obligations and other arrangements will become due in 2025 and beyond. These various purchase commitments and long-term obligations will have an effect on ArcelorMittal’s future liquidity and capital resources. For further details on commitments and obligations, please refer to note 9.4 to the consolidated financial statements. ArcelorMittal also has various environmental commitments and asset