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¨
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REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Title of each class
|
Name of each exchange on which registered
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Ordinary Shares
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New York Stock Exchange
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Large accelerated filer
x
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Accelerated filer
¨
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Non-accelerated filer
¨
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Emerging growth company
¨
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Page
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1.
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ArcelorMittal International Luxembourg is managed as part of the Europe segment as of January 1, 2017.
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•
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“production capacity” are to the annual production capacity of plant and equipment based on existing technical parameters as estimated by management;
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•
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“steel products” are to finished and semi-finished steel products, and exclude raw materials (including those described under “upstream” below), direct reduced iron (“DRI”), hot metal, coke, etc.;
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•
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“sales” include shipping and handling fees and costs billed to a customer in a sales transaction;
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•
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“tons”, “net tons” or “ST” are to short tons and are used in measurements involving steel products (a short ton is equal to 907.2 kilograms or 2,000 pounds);
|
•
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“tonnes” or “MT” are to metric tonnes and are used in measurements involving steel products, as well as crude steel, iron ore, iron ore pellets, DRI, hot metal, coke, coal, pig iron and scrap (a metric tonne is equal to 1,000 kilograms or 2,204.62 pounds);
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•
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“Articles of Association” are to the amended and restated articles of association of ArcelorMittal, dated May 22, 2017;
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•
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“crude steel” are to the first solid steel product upon solidification of liquid steel, including ingots from conventional mills and semis (e.g., slab, billet and blooms) from continuous casters;
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•
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measures of distance are stated in kilometers, each of which equals approximately 0.62 miles, or in meters, each of which equals approximately 3.28 feet;
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•
|
“DMTU” or “dmtu” stands for dry metric tonne unit;
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•
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“real”, “reais” or “R$” are to Brazilian reais, the official currency of Brazil;
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•
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“US$”, “$”, “dollars”, “USD” or “U.S. dollars” are to United States dollars, the official currency of the United States;
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•
|
“AUD$” or “AUD” are to Australian dollars, the official currency of Australia;
|
•
|
“C$” or “CAD” are to Canadian dollars, the official currency of Canada;
|
•
|
“CNY” are to Chinese yuan, the official currency of China;
|
•
|
“KZT” are to the Kazakhstani tenge, the official currency of Kazakhstan;
|
•
|
“UAH” are to the Ukrainian Hryvnia, the official currency of Ukraine;
|
•
|
“euro”, “euros”, “EUR” or “€” are to the official currency of the European Union (“EU”) member states participating in the European Monetary Union;
|
•
|
“ZAR” are to South African rand, the official currency of the Republic of South Africa;
|
•
|
“Ps.” or “MXN” are to the Mexican peso, the official currency of the United Mexican States;
|
•
|
“special bar quality” (“SBQ”) are to special bar quality steel, a high-quality long product;
|
•
|
“downstream” are to finishing operations, for example in the case of flat products, the process after the production of hot-rolled coil/plates, and in case of long products, the process after the production of blooms/billets (including production of bars, wire rods, SBQ, etc.);
|
•
|
“upstream” are to operations that precede downstream steel-making, coking coal, coke, sinter, DRI, blast furnace, basic oxygen furnace (“BOF”), electric arc furnace (“EAF”), casters & hot rolling/plate mill;
|
•
|
“number of employees” are to employees on the payroll of the Company;
|
•
|
“Significant Shareholder” are to a trust (HSBC Trustee (C.I.) Limited, as trustee), of which Mr. Lakshmi N. Mittal, Mrs. Usha Mittal and their children are the beneficiaries, or (where the context requires) prior owners of the Significant Shareholder’s stake in ArcelorMittal;
|
•
|
“GMB” are to the Group Management Board, the former senior management body which was replaced by the CEO Office as of January 1, 2016. The CEO Office, supported by six Executive Officers, makes up the Company’s senior management;
|
•
|
“CEO Office” are to the Chief Executive Officer, Mr. Lakshmi N. Mittal, and the Chief Financial Officer, Mr. Aditya Mittal;
|
•
|
“Executive Officers” are to those executives of the Company who are supporting the CEO Office and jointly with the CEO Office represent the senior management of the Company;
|
•
|
“brownfield project” are to the expansion of an existing operation;
|
•
|
“greenfield project” are to the development of a new project;
|
•
|
“coking coal” are to coal that, by virtue of its coking properties, is used in the manufacture of coke, which is used in the steelmaking process;
|
•
|
“direct reduced iron” or “DRI” are to metallic iron formed by removing oxygen from iron ore without the formation of, or passage through, a smelting phase. DRI can be used as feedstock for steel production;
|
•
|
“iron ore fines” are to ultra-fine iron ore generated by mining and grinding processes, that are aggregated into iron ore pellets through an agglomeration process or used as sinter feed;
|
•
|
“iron pellets” are to agglomerated ultra-fine iron ore particles of a size and quality suitable for use in steel-making processes;
|
•
|
“sinter” are to a metallic input used in the blast furnace steel-making process, which aggregates fines, binder and other materials into a coherent mass by heating without melting;
|
•
|
“energy coal” are to coal used as a fuel source in electrical power generation, cement manufacture and various industrial applications. Energy coal may also be referred to as steam or thermal coal;
|
•
|
“metallurgical coal” are to a broader term than coking coal that includes all coals used in steelmaking, such as coal used for the pulverized coal injection (“PCI”) process;
|
•
|
“run of mine” or “ROM” are to mined iron ore or coal to be fed to a preparation and/or concentration process;
|
•
|
“wet recoverable” are to a quantity of iron ore or coal recovered after the material from the mine has gone through a preparation and/or concentration process excluding drying;
|
•
|
“CIS” are to the countries of the Commonwealth of Independent States; and
|
•
|
the “Spanish Stock Exchanges” are to the stock exchanges of Madrid, Barcelona, Bilbao and Valencia.
|
ITEM 1.
|
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
|
ITEM 2.
|
OFFER STATISTICS AND EXPECTED TIMETABLE
|
ITEM 3.
|
KEY INFORMATION
|
(Amounts in $ millions except per share data)
|
Year ended December 31,
|
||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
Sales
|
68,679
|
|
56,791
|
|
63,578
|
|
79,282
|
|
79,440
|
Operating income/(loss)
|
5,434
|
|
4,161
|
|
(4,161)
|
|
3,034
|
|
1,197
|
Net income/(loss) from continuing operations (including non-controlling interest)
|
4,575
|
|
1,734
|
|
(8,423)
|
|
(974)
|
|
(2,575)
|
Net income/(loss) attributable to equity holders of the parent
|
4,568
|
|
1,779
|
|
(7,946)
|
|
(1,086)
|
|
(2,545)
|
Net income/(loss) (including non-controlling interest)
|
4,575
|
|
1,734
|
|
(8,423)
|
|
(974)
|
|
(2,575)
|
Earnings per common share (in U.S. dollars)
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share
1, 2
|
4.48
|
|
1.87
|
|
(10.29)
|
|
(1.43)
|
|
(3.40)
|
Diluted earnings (loss) per common share
1, 2
|
4.47
|
|
1.86
|
|
(10.29)
|
|
(1.43)
|
|
(3.40)
|
Dividends declared per share
3,4
|
0.10
|
|
—
|
|
—
|
|
0.45
|
|
0.45
|
(Amounts in $ millions except share data)
|
As of December 31,
|
||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
Total assets
|
85,297
|
|
75,142
|
|
76,846
|
|
99,179
|
|
112,308
|
Net assets
|
40,855
|
|
32,325
|
|
27,570
|
|
45,160
|
|
53,173
|
Share capital
|
401
|
|
401
|
|
10,011
|
|
10,011
|
|
10,011
|
Basic weighted average common shares outstanding (millions)
2
|
1,020
|
|
953
|
|
772
|
|
771
|
|
766
|
Diluted weighted average common shares outstanding (millions)
2
|
1,024
|
|
955
|
|
772
|
|
771
|
|
766
|
|
1
|
Basic earnings per common share are computed by dividing net income attributable to equity holders of ArcelorMittal by the weighted average number of common shares outstanding during the periods presented. Diluted earnings per common share include assumed shares from stock options, shares from restricted stock units and convertible debt (if dilutive) in the weighted average number of common shares outstanding during the periods presented. See note 10.3 to the consolidated financial statements for further information.
|
2
|
Following the Company’s equity offering in April 2016, the earnings (loss) per share for prior periods have been recast in accordance with IFRS for the years ended December 31, 2015, 2014 and 2013, respectively, to include the bonus element derived from the 35% discount to the theoretical ex-right price included in the subscription price. Following the completion of the Company's share consolidation of each three existing shares into one share without nominal value on May 22, 2017, the earnings (loss) per share and corresponding basic and diluted weighted average common shares outstanding for the years ended December 31, 2016, 2015, 2014 and 2013, respectively, have been recast in accordance with IFRS.
|
3
|
Following the Company’s equity offering in April 2016, the dividends declared per share for prior periods have been recast for the years ended December 31, 2014 and 2013, respectively, to include the bonus element derived from the 35% discount to the theoretical ex-right price included in the subscription price. The actual dividends paid were $0.20 and $0.20 per issued share as of December 31, 2014 and 2013, respectively. Following the completion of the Company's share consolidation of each three existing shares into one share without nominal value on May 22, 2017, the dividends declared per share for the years ended December 31, 2014 and 2013, respectively, have been recast.
|
4
|
The Board has agreed on a new dividend policy which will be proposed to shareholders at the AGM in May 2018. Given the current deleveraging focus, dividends will begin at $0.10/share in 2018 (paid from 2017 results).
|
•
|
flooding of the open pit;
|
•
|
collapse of the open-pit wall;
|
•
|
accidents associated with the operation of large open-pit mining and rock transportation equipment;
|
•
|
accidents associated with the preparation and ignition of large-scale open-pit blasting operations;
|
•
|
production disruptions due to weather;
|
•
|
hazards associated with the disposal of mineralized waste water, such as groundwater and waterway contamination; and
|
•
|
collapse of tailings ponds dams or dams.
|
•
|
underground fires and explosions, including those caused by flammable gas;
|
•
|
gas and coal outbursts;
|
•
|
cave-ins or falls of ground;
|
•
|
discharges of gases and toxic chemicals;
|
•
|
flooding;
|
•
|
sinkhole formation and ground subsidence;
|
•
|
difficulties associated with mining in extreme weather conditions, such as the Arctic; and
|
•
|
blasting, removing, and processing material from an underground mine.
|
•
|
establish mineral reserves through drilling;
|
•
|
determine appropriate mining and metallurgical processes for optimizing the recovery of saleable product from iron ore and coal reserves;
|
•
|
obtain environmental and other licenses;
|
•
|
construct mining and processing facilities and the infrastructure required for greenfield properties;
|
•
|
extract the saleable products from the mined iron ore or coal; and
|
•
|
maintain the appropriate blend of ore to ensure the final product qualities expected by the customer are achieved.
|
ITEM 4.
|
INFORMATION ON THE COMPANY
|
•
|
During 2017, ArcelorMittal completed several financing and repayment transactions. Please refer to “
Item 5B—Operating and financial review and prospects—
Liquidity and capital resources—Financings” for a summary of the transactions.
|
•
|
During 2017, ArcelorMittal completed certain divestment and other investment transactions not listed below. Please refer to notes 2.3 and 2.5 to the consolidated financial statements within this report for a summary of the transactions.
|
•
|
On August 25, 2017, ArcelorMittal completed the sale (per a sales agreement entered into in October 2016) of its 50% shareholding in Kalagadi Manganese (Proprietary) Limited to Kgalagadi Alloys (Proprietary) Limited for consideration to be paid during the life of the mine, which is contingent on the financial performance of the mine and cash flow availability.
|
•
|
On August 7, 2017, ArcelorMittal USA and Cliffs Natural Resources (“Cliffs”) agreed that Cliffs would acquire ArcelorMittal USA’s 21% ownership interest in the Empire Iron Mining Partnership for $133 million plus the assumption of all partnership liabilities. The payment of $133 million will be in three equal installments with the first payment of $44 million in August 2017, and the two subsequent payments to be received in August of 2018 and 2019.
|
•
|
On June 28, 2017, the consortium formed by ArcelorMittal and Marcegaglia signed a lease and obligation to purchase agreement with the Italian Government for Ilva S.p.A. and certain of its subsidiaries (“Ilva”). Intesa Sanpaolo will formally join the consortium before the transaction closes. Ilva is Europe’s largest single steel site and only integrated steelmaker in Italy with its main production facility based in Taranto. Ilva also has significant steel finishing capacity in Taranto, Novi Ligure and Genova. The purchase price amounts to €1.8 billion, with annual leasing costs of €180 million to be paid in quarterly installments. The assets will be transferred to AM InvestCo Italy Srl ("AM InvestCo") free of long term liabilities and financial debt and include €1 billion of net working capital, subject to adjustment. Ilva’s assets will be initially leased with rental payments qualifying as down payments against the purchase price. The lease is for a minimum period of two years. The closing of the transaction is subject to certain conditions precedent, including receipt of antitrust approvals. With respect to antitrust approvals, ArcelorMittal notified the European Commission of AM InvestCo's proposed acquisition of Ilva on September 21, 2017, and submitted commitments on October 19, 2017. On November 8, 2017, the European Commission initiated a Phase II review of AM InvestCo’s proposed acquisition of Ilva and ArcelorMittal confirmed it will continue to work closely and constructively with the Commission to explain the dynamics of the steel industry, the rationale of the proposed acquisition and the benefits it will bring to industry, customers, the environment and the local economy. The Company continues to engage in dialogue with the Commission seeking to secure approval for this transaction.
|
•
|
On June 21, 2017, as a result of the extension of the partnership between ArcelorMittal and the Bekaert Group in the steel cord business in Brazil, the Company completed the acquisition of a 55.5% controlling interest in Bekaert Sumaré Ltda. from the Bekaert Group and renamed it ArcelorMittal Bekaert Sumaré Ltda., a manufacturer of metal ropes for automotive tires located in the municipality of Sumaré/SP, Brazil. The Company agreed to pay a total cash consideration of €56 million ($63 million) of which €52 million ($58 million) settled on closing date and €4 million ($5 million) to be paid subsequently upon conclusion of certain business restructuring measures by Bekaert.
|
•
|
On May 22, 2017, following the approval of the Extraordinary General Meeting of shareholders of ArcelorMittal held on May 10, 2017, ArcelorMittal completed a reverse stock split and consolidated each three existing shares in the Company without nominal value into one share without nominal value.
See “Item 10.A—Additional information—Share capital.”
|
•
|
On March 1, 2017, ArcelorMittal’s Board of Directors took note of Mr. Wilbur Ross’ resignation from the Board as a consequence of his confirmation as United States Secretary of Commerce.
|
•
|
On February 23, 2017, ArcelorMittal and Votorantim S.A. announced the signing of an agreement, pursuant to which Votorantim’s long steel businesses in Brazil, Votorantim Siderurgia, will become a subsidiary of ArcelorMittal Brasil and Votorantim will hold a non-controlling interest in ArcelorMittal Brasil. Votorantim’s long steel operations in Argentina (Acerbrag) and Colombia (PazdelRío) were not included in the transaction. The combination of the businesses is expected to result in a long product steel producer with annual crude steel capacity of 5.6 million tonnes and annual rolling capacity of 5.4 million tonnes. The combined operations include ArcelorMittal Brasil’s production sites at Monlevade, Cariacica, Juiz de Fora, Piracicaba and Itaúna, and Votorantim Siderurgia’s production sites at Barra Mansa, Resende and its participation in Sitrel, in Três Lagoas. The merger is expected to generate cost, logistical and operational synergies. The combined businesses’ production facilities are geographically complementary, enabling closer proximity and higher levels of service to its customer base. On February 7, 2018, the Brazilian antitrust authority CADE approved the transaction, which is expected to close during the first half of 2018, subject to the fulfillment of divestment commitments by ArcelorMittal Brasil. Until closing, ArcelorMittal Brasil and Votorantim Siderurgia will remain fully separate and independent companies.
|
•
|
On January 27, 2017, China Oriental, a Chinese integrated iron and steel conglomerate listed on the Hong Kong Stock Exchange (“HKEx”) in which ArcelorMittal held a 47% associated interest, announced the completion of a share placement order to restore the minimum 25% free float requirement as per the HKEx listing requirement. The trading of China Oriental’s shares, which had been suspended since April 29, 2014, resumed on February 1, 2017. Following this share placing, ArcelorMittal’s interest in China Oriental decreased to 39%.
|
•
|
On February 12, 2018, ArcelorMittal announced that its subsidiary ArcelorMittal India Private Limited ("AMIPL") has submitted an offer for Essar Steel India Limited ("Essar"), an Indian steel company, in the framework of the corporate insolvency resolution process. In its offer, AMIPL set out a detailed industrial plan for Essar aimed at improving its performance and profitability and ensuring it can participate in the anticipated growth of steel demand in India. Essar is an integrated flat steel producer, with its main production facility in Gujarat. It has a nameplate crude steel capacity of
9.6 million
tonnes per year, although the current maximum achievable crude steel production level is
6.1 million
tonnes per year, due to a bottleneck in the steelmaking and casting process.
|
ArcelorMittal
|
24-26, Boulevard d’Avranches
|
L-1160 Luxembourg
|
Grand Duchy of Luxembourg
|
Telephone: +352 4792-1
|
ArcelorMittal USA LLC
|
1 South Dearborn Street, 19th floor
|
Chicago, Illinois 60603
|
United States of America
|
Telephone: + 1 312 899-3985
|
•
|
Global scale and scope
|
•
|
Unmatched technical capabilities
|
•
|
Diverse portfolio of steel and related businesses, particularly mining
|
•
|
Financial capability.
|
•
|
Europe: The Company plans to continue its successful asset optimization as an ongoing transformation plan, involving continued optimization, and the clustering of finishing sites to remove substantial overhead, centralize activities (including procurement) and improve logistics and service. Together with expected higher added value (HAV) mix and volume gains, this targets delivering a $1 billion improvement in operating income over the period.
|
•
|
NAFTA: The downstream footprint optimization in the U.S. has been completed and targets yielding a minimum of $250 million improvement in operating income. The Company intends to continue to ramp-up Calvert to full capacity during 2016 and 2017 and this is anticipated to deliver a minimum of $250 million operating income improvement. Other projects are expected to boost the HAV mix and generate further improvement.
|
•
|
Brazil: The Company plans to execute its value plan and targets an improvement in sales mix including a recovery of a share of higher margin domestic volumes and improved HAV mix by the end of 2020.
|
•
|
ACIS: The Company plans to continue its strategic focus on operational excellence to deliver volumes that will leverage the new competitive cost base it has in the CIS (following competitive currency devaluation) and execute on the improved competitiveness plan in South Africa.
|
•
|
Diversified production process.
In 2017, approximately 74 million tonnes of crude steel were produced through the basic oxygen furnace process, approximately 17 million tonnes through the electric arc furnace process and approximately 3 million tonnes of crude steel through the open hearth furnace process. This provides ArcelorMittal with greater flexibility in its raw material and energy use, and increased ability to meet varying customer requirements in the markets it serves.
|
•
|
Product and geographic diversification.
By operating a portfolio of assets diversified across product segments and geographic areas, ArcelorMittal benefits from a number of natural hedges. As a global steel producer with a broad range of high-quality finished and semi-finished steel products, ArcelorMittal is able to meet the needs of diverse markets. Steel consumption and product requirements vary between mature economy markets and developing economy markets. Steel consumption in mature economies is largely from flat products and a higher value-added mix, while developing markets utilize a higher proportion of long products and commodity grades. As developing economies mature and as market needs evolve, local customers will require increasingly advanced steel products. To meet these diverse needs, ArcelorMittal maintains a high degree of product diversification and seeks opportunities to increase the proportion of its product mix consisting of higher value-added products.
|
•
|
Upstream integration
. ArcelorMittal believes that its own raw material production provides it with a competitive advantage over time. Additionally, ArcelorMittal benefits from the ability to optimize its steel-making facilities’ efficient use of raw materials, its global procurement strategy and the implementation of company-wide knowledge management practices with respect to raw materials. Certain of the Company’s operating units also have access to infrastructure, such as deep-water port facilities, railway sidings and engineering workshops that lower transportation and logistics costs.
|
•
|
Downstream integration
. ArcelorMittal’s downstream integration, primarily through its Europe segment for distribution solutions, enables it to provide customized steel solutions to its customers more effectively. The Company’s downstream assets have cut-to-length, slitting and other processing facilities, which provide value additions and help it to maximize operational efficiencies.
|
•
|
Europe: The transformation program has progressed well. Savings at the cluster-leading plants continue to be made, with changes to the operating model to restructure and modernize the organization now well embedded. The organization is benefiting from a more integrated, centrally coordinated approach, further reducing costs. Additional gains are being made with enhanced use of and investment in digitalization in the manufacturing process, supply chain and commercial teams. Overall, net volume gains and improved mix contributed with higher hot strip mill production, offset in part by lower volumes caused by operational issues primarily in the long business.
|
•
|
NAFTA: Indiana Harbor footprint optimization has been completed: Savings achieved came from headcount rationalization and efficiencies following closure of its 84” hot strip mill ("HSM"), idling of the No.2 steel shop, and ongoing benefits from a new caster at No.3 steel shop. Restoration of the 80” HSM and Indiana Harbor finishing will continue in 2018.
|
•
|
NAFTA: Calvert ramp up is advancing with automotive qualifications proceeding and increased capacity utilization (up 10% year-on-year).
|
•
|
Brazil: Structural cost reductions are being implemented; improved HAV mix from flat business.
|
•
|
ACIS: Ukraine benefited from the construction of a new coke oven battery #6 and other PCI/energy saving initiatives. Improving operational performance in Kazakhstan with production records during the year offset by lower shipment volumes in Ukraine.
|
•
|
Mining: The business remains focused on service, quality and asset reliability. Cost focus maintained: net cash provided by operating activities and capital expenditures breakeven point remains $40/t China CFR 62% Fe.
|
•
|
as customers' demand for reassurance on product and supply chain sustainability standards continues to grow, the value of an industry-wide sustainability certification scheme for steel increases;
|
•
|
the Company faces both financial risks and opportunities relating to climate change and acknowledges the needs for a detailed climate strategy;
|
•
|
the increasing focus on building a circular, low-carbon economy will highlight the vital role steel has to play and continue to stimulate demand for new kinds of sustainable steel solutions; and
|
•
|
sustainable development is an appropriate business response to the dynamics of its key markets over the long-term.
|
|
|
For the year ended December 31,
|
||
Lost time injury frequency rate
|
|
2017
|
|
2016
|
Mining
|
|
0.77
|
|
1.07
|
|
|
|
|
|
NAFTA
|
|
0.73
|
|
0.95
|
Brazil
|
|
0.43
|
|
0.37
|
Europe
|
|
1.03
|
|
1.01
|
ACIS
|
|
0.61
|
|
0.58
|
Total Steel
|
|
0.78
|
|
0.78
|
|
|
|
|
|
Total (Steel and Mining)
|
|
0.78
|
|
0.82
|
•
|
Understand its context and impacts - from land and water use, to air pollution, taxes paid, and employment provided;
|
•
|
Listen to communities to understand what they think is important, and how they want to engage;
|
•
|
Develop environmental and social programs that best meet the objectives of the community and the Company's operations; and
|
•
|
Communicate regularly and accessibly with communities.
|
•
|
semi-finished flat products such as slabs;
|
•
|
finished flat products such as plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, tinplate and color coated coils and sheets;
|
•
|
semi-finished long products such as blooms and billets;
|
•
|
finished long products such as bars, wire-rods, structural sections, rails, sheet piles and wire-products; and
|
•
|
seamless and welded pipes and tubes.
|
•
|
iron ore lump, fines, concentrate, pellets and sinter feed; and
|
•
|
coking, PCI and thermal coal.
|
•
|
Grain-oriented steels are 3% silicon-iron alloys developed with a grain orientation to provide very low power loss and high permeability in the rolling direction, for high efficiency transformers.
|
•
|
Non-grain oriented fully processed steels are iron-silicon alloys with varying silicon contents and have similar magnetic properties in all directions in the plane of the sheet. They are principally used for motors, generators, alternators, ballasts, small transformers and a variety of other electromagnetic applications. A wide range of products, including a newly developed thin gauge material for high frequency applications, are available.
|
•
|
Non-grain oriented semi-processed steels are largely non-silicon alloys sold in the not finally annealed condition to enhance punchability. Low power loss and good permeability properties are developed after final annealing of the laminations. These materials are sold under the Newcor and Polycor trademarks.
|
•
|
Acquiring and expanding production of certain raw materials, in particular iron ore, coal and manufacturing refractory products and developing diverse third-party customer relationships;
|
•
|
With respect to purchasing, pursuing the lowest unit price available based on the principles of total cost of ownership and value-in-use through aggregated purchasing, supply chain and consumption optimization;
|
•
|
Exploiting its global purchasing reach; and
|
•
|
Leveraging local and low cost advantages on a global scale.
|
Millions of metric tonnes
|
|
Consumption
|
|
Sourced from own mines/facilities
2
|
|
Other sources
|
|
Self-sufficiency %
|
Iron ore
|
|
118.6
|
|
58.8
|
|
59.8
|
|
50%
|
PCI & coal
1
|
|
47.8
|
|
6.3
|
|
41.5
|
|
13%
|
Coke
|
|
28.9
|
|
27.1
|
|
1.8
|
|
94%
|
Scrap & DRI
|
|
35.4
|
|
19.3
|
|
16.1
|
|
55%
|
1
|
Includes coal only for the steelmaking process and excludes steam coal for power generation. ArcelorMittal's consumption of PCI and coal was 9.8 million tonnes and 38.0 million tonnes, respectively for the year ended December 31, 2017.
|
2
|
Includes iron ore shipments of 0.9 million tonnes in the first quarter of 2017 through an expired strategic contract. As of December 31, 2017, the Company does not have any strategic contracts.
|
•
|
Directive 2010/75/EU of November 24, 2010 on Industrial Emissions (the “IED Directive”), which applies common rules for permitting and controlling industrial installations. To receive a permit, installations covered by the IED Directive must ensure that their Emissions Limit Values (“ELV”) do not exceed those associated with the Best Available Techniques (“BAT”), as adopted in the decision (February 28, 2012) of the European Commission establishing the BAT conclusions for iron and steel production under the IED (C(2012)903). Air, soil or water, energy emissions, waste generation, as well as noise, hazards and site closure, are all considered with few possibilities to obtain derogations related to the implementation of BAT and the associated emissions limits values. The implementation of the IED Directive materially impacts ArcelorMittal’s activities in the EU to an amount not yet determined since many issues that ultimately will determine this impact are not yet fixed due to authorities’ delays in implementing decisions and reconsideration of permits. Most of the Member States were expected to update permits and have ELVs achieved by operators in March 2016. Most permits have been updated during 2017. However, negotiations and updates are still ongoing in some countries. On July 31, 2017, the European Commission adopted BAT conclusions for large combustion plants under the IED (C(2017)5225). The scope of these Best Available Techniques reference documents ("BREF") covers the combustion of solid, liquid and gaseous fuels (including iron and steel process gases) in boilers, gas engines and gas turbines with a total rated thermal input of > 50MW (or in case of several units > 15 MW that are aggregated (sharing a common stack) so that the addition of all capacities reaches 50 MW). The main difficulty for the combustion of process gases is the achievement of NOx and SO
2
limits when using mixtures of gases with a high share of coke oven gas. Following the adoption of these BAT conclusions, competent authorities have four years (until August 17, 2021) to review and update the permit conditions accordingly and to ensure that the new ones are compliant. It is important to note that, according to the IED it is only mandatory to update the permit conditions when new BAT conclusions related to the main activity of the installation are published. Nevertheless, competent authorities have relative freedom to launch the review even in cases where it will not be the main activity, hence several facilities may be impacted by this new BREF.
|
•
|
Directive 2008/98/EC of November 19, 2008, which establishes the legislative framework for the handling and management of waste in the EU. On December 2, 2015, the Commission adopted an ambitious new Circular Economy Package to stimulate Europe's transition towards a circular economy which will boost global competitiveness. The proposed actions will contribute to "closing the loop" of product lifecycles. The plans will extract the maximum value and use from all raw materials, products and waste, fostering energy savings and reducing greenhouse gas emissions. The proposals cover the full lifecycle: from production and consumption to waste management and the market for secondary raw materials. According to the proposed actions, the Directive 2008/98/EC on waste will be amended.
|
•
|
Directive 2012/27/EU of October 25, 2012, which repeals prior Directives 2004/8/EC and 2006/32/EC, and brings forward legally binding measures to step up Member States’ efforts to use energy more efficiently at all stages of the energy chain – from the transformation of energy and its distribution to its final consumption. Measures include the legal obligation to establish energy efficiency obligations schemes or policy measures in all Member States. The final target is to achieve energy efficiency improvements of 20%. It is worth noting that most provisions of the texts do not apply to ETS industries and a lot of flexibility is given to the Member States to set up supportive schemes instead of obligatory ones. “REACH” Regulation (EC) no. 1907/2006 for Registration, Evaluation, Authorization and Restriction of Chemicals, adopted on December 18, 2006, which controls the (chemical) substances used, manufactured in or imported into the EU and “CLP” Regulation (EC) no. 1272/2008 of December 16, 2008 on the classification, labeling and packaging of substances and mixtures, which complements it.
|
•
|
Directive 2003/87/EC of October 13, 2003 (which has been amended several times and especially by Directive 2009/29/EC) and related directives establishing the ETS in three phases for achieving Kyoto Protocol commitments relating to GHGs for Member States. The ETS works on the “cap and trade” principle. This means there is a “cap”, or limit, on the total amount of certain GHGs that can be emitted by the factories, power plants and other installations subject to the ETS. Within this cap, companies receive emission allowances which they can sell to or buy from one another as needed. The limit on the total number of allowances available ensures that they have a value. At the end of each year, each company must surrender enough allowances to cover all its emissions, otherwise heavy fines are imposed. If a company reduces its emissions, it can keep the spare allowances to cover its future needs or sell them. Phase II of the ETS ended on December 31, 2012, and Phase III covers the period from 2013 to 2020. In Phase III, all CO
2
allowances should be auctioned (as per Regulation (EC) no. 1031/2010 of November 12, 2010 on the timing, administration and other aspects of auctioning of emission allowances). The Commission is implementing Phase III of the ETS in a manner that could increase costs for the Group to obtain sufficient emission allowances for its European operations depending on steel production levels and the market price of emission allowances. Through Commission Decision 2010/2/EU of December 24, 2009, manufacturing of coke oven products, of basic iron and steel, of ferro-alloys and of cast iron tubes have been recognized as exposed to a significant risk of “carbon leakage”. In its decision of April 27, 2011, the Commission determined transitional EU-wide rules for the harmonized free allocation of emission allowances and the benchmark values for the steel industry. The values adopted result in fewer free allocations than those sought by the European steel industry and will lead to additional costs for steel companies in Europe at the point in time when companies have fully utilized their free allocations. Under Commission Decision 2013/448/EU of September 5, 2013, implementation of a so called “Cross Sectoral Correction Factor” will further negatively impact CO
2
free allowances previously announced to the industry based on benchmark values. In 2014, the Commission investigated new possible schemes and mechanisms to regulate and adjust CO
2
prices on the ETS market (CO
2
backloading, or Market Stability Reserve). On October 6, 2015, the Commission published its decision concerning the establishment and operation of a Market Stability Reserve. The reserve is supposed to address the current surplus of allowances and improve the system's resilience to major shocks by adjusting the supply of allowances to be auctioned. In other words, it is meant to address the market imbalances. The Commission agreed (October 23, 2014) on a 2030 greenhouse gas reduction target of at least 40% compared to 1990. This is on top of the other main targets of the Commission’s 2030 policy framework calling for increasing the share of renewable energy to at least 27% and increasing energy efficiency by at least 27%.
|
•
|
On November 9, 2017, the European Parliament and Council announced a provisional agreement to revise and make the ETS more stringent during the Phase 4 period of 2021 to 2030. Among other changes, Phase 4 provisions would further accelerate reduction in the current oversupply of allowances in the ETS market and establish further protections against the risks of carbon leakage. A final agreement is expected to be approved and a new EU Directive published during 2018.
|
•
|
Directive 2008/50/EC of May 21, 2008 on ambient air quality and cleaner air for Europe.
|
•
|
Directive 2004/107/EC of December 15, 2004 relating to limit values and target values for pollutants in ambient air, including thresholds on very fine particulates.
|
•
|
Directive 2001/81/EC of October 23, 2001 on national emission ceilings for certain pollutants that are currently being reviewed as part of The Clean Air Policy Package. The proposal would repeal and replace the current EU regime on the annual capping of national emissions of air pollutants. By doing so, it ensures that the national emission ceilings (NECs) set in the current Directive 2001/81/EC for 2010 onwards for SO
2
, NOx, NMVOC and NH3 shall apply until 2020 and establishes new national emission reduction commitments (“reduction commitments”) applicable from 2020 and 2030 for SO
2
, NOx, NMVOC, NH3, fine particulate matter (“PM”2,5) and methane (CH4).
|
•
|
The new Directive on the control of major accidents hazards involving dangerous substances, also known as SEVESO III 2012/18/UE (repeals Directive 96/82/EC of December 9, 1996), which has been applicable since June 1, 2015. Updates take into account changes in the EU classification of dangerous substances, strengthen provisions on public access to safety information and introduce stricter standards for inspections of installations.
|
•
|
Directive 2011/92/UE concerning the impact assessment of certain public and private projects on the environment. Directive 2009/31/EC of April 23, 2009 on the geological storage of carbon dioxide.
|
•
|
Directive 2009/28/EC of April 23, 2009 on the promotion of the use of energy from renewable sources.
|
•
|
Directive 2008/68/EC of September 24, 2008 on the inland transport of dangerous goods, by rail, road, and inland waterway.
|
•
|
Directive 2004/35/EC of April 21, 2004, and Directive 2008/99/EC of November 19, 2008, establishing liability (including criminal liability) for violations of the EU environmental legislation.
|
•
|
The new Directive 2013/59/EURATOM of December 5, 2013, establishing basic safety standards for protection from the exposure to ionizing radiation and repealing former EURATOM directives, to be complied with from February 6, 2018.
|
Facility
|
|
Number of Facilities
|
|
Capacity (in million tonnes per year)
1
|
|
Production in 2017 (in million tonnes per year)
2
|
Coke Oven Battery
|
|
69
|
|
32.8
|
|
25.8
|
Sinter Plant
|
|
32
|
|
95.8
|
|
69.2
|
Blast Furnace
|
|
56
|
|
95.6
|
|
72.4
|
Basic Oxygen Furnace (including Tandem Furnace)
|
|
71
|
|
101.7
|
|
77.3
|
DRI Plant
|
|
13
|
|
9.4
|
|
7.3
|
Electric Arc Furnace
|
|
31
|
|
26.2
|
|
17.5
|
Continuous Caster—Slabs
|
|
46
|
|
91.1
|
|
66.4
|
Hot Rolling Mill
|
|
21
|
|
74.0
|
|
54.9
|
Pickling Line
|
|
35
|
|
36.3
|
|
18.4
|
Tandem Mill
|
|
38
|
|
41.5
|
|
28.0
|
Annealing Line (continuous / batch)
|
|
53
|
|
20.8
|
|
11.2
|
Skin Pass Mill
|
|
35
|
|
20.7
|
|
9.2
|
Plate Mill
|
|
11
|
|
6.7
|
|
2.8
|
Continuous Caster—Bloom / Billet
|
|
33
|
|
30.9
|
|
21.8
|
Breakdown Mill (Blooming / Slabbing Mill)
|
|
3
|
|
10.7
|
|
5.0
|
Billet Rolling Mill
|
|
3
|
|
2.6
|
|
1.5
|
Section Mill
|
|
25
|
|
13.6
|
|
8.5
|
Bar Mill
|
|
20
|
|
7.8
|
|
5.4
|
Wire Rod Mill
|
|
18
|
|
11.8
|
|
7.9
|
Hot Dip Galvanizing Line
|
|
58
|
|
20.7
|
|
17.2
|
Electro Galvanizing Line
|
|
13
|
|
2.6
|
|
1.1
|
Tinplate Mill
|
|
16
|
|
3.4
|
|
2.1
|
Tin Free Steel (TFS)
|
|
1
|
|
0.3
|
|
0.1
|
Color Coating Line
|
|
19
|
|
2.8
|
|
1.9
|
Seamless Pipes
|
|
7
|
|
0.9
|
|
0.3
|
Welded Pipes
|
|
58
|
|
3.0
|
|
1.0
|
1
|
Reflects design capacity and does not take into account other constraints in the production process (such as, upstream and downstream bottlenecks and product mix changes). As a result, in some cases, design capacity may be different from the current achievable capacity.
|
2
|
Production facility details include the production numbers for each step in the steel-making process. Output from one step in the process is used as input in the next step in the process. Therefore, the sum of the production numbers does not equal the quantity of sellable finished steel products.
|
NAFTA
|
|
|
|
|
|
Crude Steel
|
|
|
|
|
|
|
|
|
|
|
|
Unit
|
|
Country
|
|
Locations
|
|
Production in 2017 (in million tonnes per year)
1
|
Type of plant
|
Products
|
ArcelorMittal USA
|
|
USA
|
|
Warren, OH
|
|
n/a
|
Coke-Making
|
Coke
|
ArcelorMittal USA
|
|
USA
|
|
Monessen, PA
|
|
n/a
|
Coke-Making
|
Coke
|
ArcelorMittal USA
2
3
|
|
USA
|
|
East Chicago, IN
|
|
5.0
|
Integrated
|
Flat
|
ArcelorMittal USA
|
|
USA
|
|
Burns Harbor, IN
|
|
4.4
|
Integrated
|
Flat
|
ArcelorMittal USA
|
|
USA
|
|
Cleveland, OH
|
|
3.2
|
Integrated
|
Flat
|
ArcelorMittal USA
|
|
USA
|
|
Riverdale, IL
|
|
0.7
|
Integrated
|
Flat
|
ArcelorMittal USA
|
|
USA
|
|
Coatesville, PA
|
|
0.4
|
Mini-mill
|
Flat
|
ArcelorMittal USA
|
|
USA
|
|
Columbus, OH
|
|
n/a
|
Downstream
|
Flat
|
I/N Tek
|
|
USA
|
|
New Carlisle, IN
|
|
n/a
|
Downstream
|
Flat
|
ArcelorMittal USA
|
|
USA
|
|
Conshohocken, PA
|
|
n/a
|
Downstream
|
Flat
|
ArcelorMittal USA
|
|
USA
|
|
Weirton, WV
|
|
n/a
|
Downstream
|
Flat
|
ArcelorMittal USA
|
|
USA
|
|
Gary, IN
|
|
n/a
|
Downstream
|
Flat
|
Double G
|
|
USA
|
|
Jackson, MS
|
|
n/a
|
Downstream
|
Flat
|
ArcelorMittal Dofasco
|
|
Canada
|
|
Hamilton
|
|
3.7
|
Integrated, Mini-mill
|
Flat
|
ArcelorMittal Mexico
|
|
Mexico
|
|
Lázaro Cárdenas, Celaya
|
|
3.8
|
Mini-mill, Integrated, and Downstream
|
Flat, Long/ Bar, Wire Rod
|
ArcelorMittal Long Products Canada
|
|
Canada
|
|
Contrecoeur East, West
|
|
2.0
|
Mini-mill
|
Long/ Wire Rod, Bars, Slabs
|
ArcelorMittal USA
|
|
USA
|
|
Steelton, PA
|
|
0.3
|
Mini-mill
|
Long/ Rail
|
ArcelorMittal Tubular Products
|
|
Canada
|
|
Brampton
|
|
n/a
|
Downstream
|
Pipes and Tubes
|
ArcelorMittal Tubular Products
|
|
Canada
|
|
London
|
|
n/a
|
Downstream
|
Pipes and Tubes
|
ArcelorMittal Tubular Products
|
|
Canada
|
|
Woodstock
|
|
n/a
|
Downstream
|
Pipes and Tubes
|
ArcelorMittal Tubular Products
|
|
Canada
|
|
Hamilton
|
|
n/a
|
Downstream
|
Pipes and Tubes
|
ArcelorMittal Tubular Products
|
|
USA
|
|
Shelby
|
|
n/a
|
Downstream
|
Pipes and Tubes
|
ArcelorMittal Tubular Products
|
|
USA
|
|
Marion
|
|
n/a
|
Downstream
|
Pipes and Tubes
|
ArcelorMittal Tubular Products
|
|
Mexico
|
|
Monterrey
|
|
n/a
|
Downstream
|
Pipes and Tubes
|
1
|
Note: n/a = not applicable (no crude steel production).
|
2
|
Indiana Harbor (East and West).
|
3
|
ArcelorMittal USA idled its #2 basic oxygen furnace and its #2 slab caster at Indiana Harbor East (East Chicago) in June 2017.
|
BRAZIL
|
|
|
|
|
|
Crude Steel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit
|
|
Country
|
|
Locations
|
|
Production in 2017 (in million tonnes per year)
1
|
|
Type of plant
|
|
Products
|
Sol
|
|
Brazil
|
|
Vitoria
|
|
n/a
|
|
Coke-Making
|
|
Coke
|
ArcelorMittal Tubarão
|
|
Brazil
|
|
Vitoria
|
|
7.2
|
|
Integrated
|
|
Flat
|
ArcelorMittal Vega
|
|
Brazil
|
|
São Francisco do Sul
|
|
n/a
|
|
Downstream
|
|
Flat
|
ArcelorMittal Brasil
|
|
Brazil
|
|
João Monlevade
|
|
1.0
|
|
Integrated
|
|
Long/ Wire Rod
|
Acindar
|
|
Argentina
|
|
Villa Constitucion
|
|
1.1
|
|
Mini-mill
|
|
Long/ Wire Rod, Bar
|
ArcelorMittal Brasil
|
|
Brazil
|
|
Juiz de Fora, Piracicaba, Cariacica,
|
|
1.9
|
|
Mini-mill
|
|
Long/ Bar, Wire Rod
|
ArcelorMittal Costa Rica
|
|
Costa Rica
|
|
Costa Rica
|
|
n/a
|
|
Downstream
|
|
Long/ Wire Rod
|
Industrias Unicon
|
|
Venezuela
|
|
Barquisimeto, Matanzas, La Victoria
|
|
n/a
|
|
Downstream
|
|
Pipes and Tubes
|
1
|
Note: n/a = not applicable (no crude steel production)
|
EUROPE
|
|
|
|
|
|
Crude Steel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit
|
|
Country
|
|
Locations
|
|
Production in 2017 (in million tonnes per year)
1
|
|
Type of plant
|
|
Products
|
ArcelorMittal Bremen
|
|
Germany
|
|
Bremen, Bottrop
|
|
3.2
|
|
Integrated
|
|
Flat
|
ArcelorMittal Eisenhüttenstadt
|
|
Germany
|
|
Eisenhüttenstadt
|
|
2.2
|
|
Integrated
|
|
Flat
|
ArcelorMittal Belgium
|
|
Belgium
|
|
Gent, Geel, Genk, Huy, Liège
|
|
5.5
|
|
Integrated and Downstream
|
|
Flat
|
ArcelorMittal Atlantique et Lorraine
|
|
France
|
|
Dunkirk,
Mardyck, Montataire, Desvres, Florange, Mouzon, Basse- Indre |
|
6.9
|
|
Integrated and Downstream
|
|
Flat
|
ArcelorMittal Méditerranée
|
|
France
|
|
Fos-sur-Mer,
Saint-Chély |
|
3.8
|
|
Integrated and Downstream
|
|
Flat
|
ArcelorMittal Galati
|
|
Romania
|
|
Galati
|
|
2.0
|
|
Integrated
|
|
Flat
|
ArcelorMittal España
|
|
Spain
|
|
Avilés, Gijón, Etxebarri, Lesaka
|
|
4.7
|
|
Integrated and Downstream
|
|
Flat, Long, Rails, Wire Rod
|
ArcelorMittal Poland
|
|
Poland
|
|
Krakow, Swietochlowice, Dabrowa Gornicza,
Chorzow, Sosnowiec, Zdzieszowice |
|
5.6
|
|
Integrated and Downstream
|
|
Flat, Long, Coke/ Sections, Wire Rod, Sheet Piles, Rails
|
ArcelorMittal Sestao
|
|
Spain
|
|
Bilbao
|
|
0.3
|
|
Mini-mill
|
|
Flat
|
ArcelorMittal Sagunto
|
|
Spain
|
|
Sagunto
|
|
n/a
|
|
Downstream
|
|
Flat
|
ArcelorMittal Piombino
|
|
Italy
|
|
Avellino,
Piombino |
|
n/a
|
|
Downstream
|
|
Flat
|
ArcelorMittal Dudelange
|
|
Luxembourg
|
|
Dudelange
|
|
n/a
|
|
Downstream
|
|
Flat
|
ArcelorMittal Skopje
|
|
Macedonia
|
|
Skopje
|
|
n/a
|
|
Downstream
|
|
Flat
|
ArcelorMittal Tallinn
|
|
Estonia
|
|
Tallinn
|
|
n/a
|
|
Downstream
|
|
Flat
|
Industeel
|
|
France, Belgium
|
|
Charleroi, Le Creusot, Chateauneuf,
Saint-Chamond, Seraing, Dunkirk |
|
0.4
|
|
Mini-mill and Downstream
|
|
Flat
|
ArcelorMittal Ostrava
|
|
Czech Republic
|
|
Ostrava
|
|
1.8
|
|
Integrated
|
|
Flat, Long
|
ArcelorMittal Belval & Differdange
|
|
Luxembourg
|
|
Esch-Belval, Differdange, Rodange
|
|
2.2
|
|
Mini-mill
|
|
Long /Sheet Piles, Rails, Sections & Special Sections
|
ArcelorMittal Gipuzkoa
|
|
Spain
|
|
Olaberría, Bergara
|
|
1.0
|
|
Mini-mill
|
|
Long/ Sections
|
1
|
n/a = Not applicable (no crude steel production)
|
EUROPE (continued)
|
|
|
|
|
|
Crude Steel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit
|
|
Country
|
|
Locations
|
|
Production in 2017 (in million tonnes per year)
1
|
|
Type of plant
|
|
Products
|
ArcelorMittal Gandrange
|
|
France
|
|
Gandrange
|
|
n/a
|
|
Downstream
|
|
Long/ Wire Rod, Bars
|
ArcelorMittal Warszawa
|
|
Poland
|
|
Warsaw
|
|
0.6
|
|
Mini-mill
|
|
Long/ Bars
|
ArcelorMittal Hamburg
|
|
Germany
|
|
Hamburg
|
|
1.0
|
|
Mini-mill
|
|
Long/ Wire Rods
|
ArcelorMittal Duisburg
|
|
Germany
|
|
Ruhrort, Hochfeld
|
|
1.1
|
|
Integrated
|
|
Long/ Billets, Wire Rod
|
ArcelorMittal Hunedoara
|
|
Romania
|
|
Hunedoara
|
|
0.3
|
|
Mini-mill
|
|
Long/ Sections
|
Sonasid
|
|
Morocco
|
|
Nador, Jorf Lasfar
|
|
0.5
|
|
Mini-mill
|
|
Long/ Wire Rod, Bars, Rebars in Coil
|
ArcelorMittal Zenica
|
|
Bosnia and Herzegovina
|
|
Zenica
|
|
0.7
|
|
Mini-mill / Integrated
|
|
Long/ Wire Rod, Bars
|
ArcelorMittal Tubular Products Galati SRL
|
|
Romania
|
|
Galati
|
|
n/a
|
|
Downstream
|
|
Pipes and Tubes
|
ArcelorMittal Tubular Products Roman SA
|
|
Romania
|
|
Roman
|
|
n/a
|
|
Downstream
|
|
Pipes and Tubes
|
ArcelorMittal Tubular Products Iasi SA
|
|
Romania
|
|
Iasi
|
|
n/a
|
|
Downstream
|
|
Pipes and Tubes
|
ArcelorMittal Tubular Products Ostrava a.s.
|
|
Czech Republic
|
|
Ostrava
|
|
n/a
|
|
Downstream
|
|
Pipes and Tubes
|
ArcelorMittal Tubular Products Karvina a.s.
|
|
Czech Republic
|
|
Karvina
|
|
n/a
|
|
Downstream
|
|
Pipes and Tubes
|
ArcelorMittal Tubular Products Kraków
|
|
Poland
|
|
Krakow
|
|
n/a
|
|
Downstream
|
|
Pipes and Tubes
|
ArcelorMittal Tubular Products Hautmont
|
|
France
|
|
Hautmont
|
|
n/a
|
|
Downstream
|
|
Pipes and Tubes
|
ArcelorMittal Tubular Products Vitry
|
|
France
|
|
Vitry
|
|
n/a
|
|
Downstream
|
|
Pipes and Tubes
|
ArcelorMittal Tubular Products Chevillon
|
|
France
|
|
Chevillon
|
|
n/a
|
|
Downstream
|
|
Pipes and Tubes
|
1
|
n/a = Not applicable (no crude steel production)
|
ACIS
|
|
|
|
|
|
Crude Steel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit
|
|
Country
|
|
Locations
|
|
Production in 2017 (in million tonnes per year)
1
|
|
Type of plant
|
|
Products
|
ArcelorMittal Temirtau JSC
|
|
Kazakhstan
|
|
Termitau
|
|
4.1
|
|
Integrated
|
|
Flat, Long, Pipes and Tubes
|
ArcelorMittal Kryvyi Rih
|
|
Ukraine
|
|
Kryvyi Rih
|
|
5.8
|
|
Integrated
|
|
Long
|
ArcelorMittal South Africa
|
|
South Africa
|
|
Vanderbijlpark, Saldanha, Newcastle, Pretoria
|
|
4.8
|
|
Integrated Mini-mill Downstream
|
|
Flat, Long, Pipes and Tubes
|
JSC ArcelorMittal Tubular Products Aktau
|
|
Kazakhstan
|
|
Aktau
|
|
n/a
|
|
Downstream
|
|
Pipes and Tubes
|
1
|
Note: n/a = not applicable (no crude steel production).
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit
|
|
Country
|
|
Locations
|
|
ArcelorMittal Interest (%)
|
|
Type of Mine
|
|
Product
|
|
Iron Ore
|
|
|
|
|
|
|
|
|
|
|
|
ArcelorMittal Mines and Infrastructure Canada
|
|
Canada
|
|
Mt Wright and Port Cartier, Qc
|
|
85.0
|
|
Iron Ore Mine (open pit), railway and port
|
|
Concentrate and pellets
|
|
Baffinland
|
|
Canada
|
|
Baffin Island, Nunavut
|
|
31.1
|
1
|
|
Iron Ore Mine (open pit)
|
|
Lump and fines
|
Minorca Mines
|
|
USA
|
|
Virginia, MN
|
|
100.0
|
|
Iron Ore Mine (open pit)
|
|
Pellets
|
|
Hibbing Taconite Mines
|
|
USA
|
|
Hibbing, MN
|
|
62.3
|
|
Iron Ore Mine (open pit)
|
|
Pellets
|
|
ArcelorMittal Mexico
|
|
Mexico
|
|
Sonora, Lazaro Cardenas
|
|
100.0
|
|
Iron Ore Mine (open pit)
|
|
Concentrate, lump and fines
|
|
ArcelorMittal Mexico Peña Colorada
|
|
Mexico
|
|
Minatitlán
|
|
50.0
|
|
Iron Ore Mine (open pit)
|
|
Concentrate and pellets
|
|
ArcelorMittal Brasil Andrade Mine
|
|
Brazil
|
|
State of Minas Gerais
|
|
100.0
|
|
Iron Ore Mine (open pit)
|
|
Fines
|
|
ArcelorMittal Mineração Serra Azul
|
|
Brazil
|
|
State of Minas Gerais
|
|
100.0
|
|
Iron Ore Mine (open pit)
|
|
Lump and fines
|
|
ArcelorMittal Prijedor
|
|
Bosnia and Herzegovina
|
|
Prijedor
|
|
51.0
|
|
Iron Ore Mine (open pit)
|
|
Concentrate and lump
|
|
ArcelorMittal Kryvyi Rih
|
|
Ukraine
|
|
Kryvyi Rih
|
|
95.1
|
|
Iron Ore Mine (open pit and underground)
|
|
Concentrate, lump and sinter feed
|
|
ArcelorMittal Temirtau
|
|
Kazakhstan
|
|
Lisakovsk, Kentobe, Atasu, Atansore
|
|
100.0
|
|
Iron Ore Mine (open pit and underground)
|
|
Concentrate, lump and fines
|
|
ArcelorMittal Liberia
|
|
Liberia
|
|
Yekepa
|
|
85.0
|
|
Iron Ore Mine (open pit)
|
|
Fines
|
|
Coal
|
|
|
|
|
|
|
|
|
|
|
|
ArcelorMittal Princeton
|
|
USA
|
|
McDowell, WV, Tazewell, VA
|
|
100.0
|
|
Coal Mine (surface and underground)
|
|
Coking and PCI coal
|
|
ArcelorMittal Temirtau
|
|
Kazakhstan
|
|
Karaganda
|
|
100.0
|
|
Coal Mine (underground)
|
|
Coking coal and thermal coal
|
1.
|
The Company's share in Baffinland was decreased from 44.5% to 31.1%, see note 2.4 to the consolidated financial statements.
|
Region
|
|
Site
|
|
Project
|
|
Capacity / particulars
|
|
Actual completion
|
|
Note #
|
NAFTA
|
|
AM/NS Calvert
|
|
Phase 2: Slab yard expansion (Bay 5)
|
|
Increase coil production level from 4.6 million tonnes/year to 5.3 million tonnes/year coils
|
|
Q2 2017
|
|
|
NAFTA
|
|
ArcelorMittal Dofasco (Canada)
|
|
Phase 2: Convert the current galvanizing line #4 to a Galvalume line
|
|
Allow the galvaline #4 to produce 160 thousand tonnes galvalume and 128 thousand tonnes galvanize and closure of galvanize line #1 (capacity 170 thousand tonnes of galvalume)
|
|
Q2 2017
|
|
|
Europe
|
|
ArcelorMittal Krakow (Poland)
|
|
HSM extension
|
|
Increase HRC capacity by 0.9 million tonnes/year
|
|
Q2 2017
|
|
|
|
|
HDG increase
|
|
Increasing HDG capacity by 0.4 million tonnes/year
|
|
Q2 2017
|
|
|
Ongoing
Projects
3
|
|
|
||||||||
Region
|
|
Site
|
|
Project
|
|
Capacity / particulars
|
|
Forecast completion
|
|
Note #
|
Europe
|
|
Gent & Liège (Europe Flat Automotive UHSS Program)
|
|
Gent: Upgrade HSM and new furnace
Liège: Annealing line transformation
|
|
Increase ~400 thousand tonnes in Ultra High Strength Steel capabilities
|
|
Q1 2018
|
|
|
Europe
|
|
ArcelorMittal Differdange
|
|
Modernisation of finishing of “Grey rolling mill"
|
|
Revamp finishing to achieve full capacity of Grey mill at 850 thousand tonnes per year
|
|
Q1 2018
|
|
|
ACIS
|
|
ArcelorMittal Kryvyi Rih
|
|
New LF&CC 2&3
|
|
Facilities upgrade to switch from ingot to continuous caster route. Additional billets of 290 thousand tonnes over ingot route through yield increase
|
|
Q4 2018
|
|
|
NAFTA
|
|
Indiana Harbor
|
|
Indiana Harbor “footprint optimization project”
|
|
Restoration of 80” HSM and upgrades at Indiana Harbor finishing
|
|
2018
|
|
2
|
Europe
|
|
Sosnowiec (Poland)
|
|
Modernization of Wire Rod Mill
|
|
Upgrade rolling technology improving the mix of HAV products and increase volume by 90 thousand tonnes
|
|
2019
|
|
|
NAFTA
|
|
Mexico
|
|
Build new HSM
|
|
Production capacity of 2.5 million tonnes per year
|
|
2020
|
|
5
|
NAFTA
|
|
Burns Harbor
|
|
New walking beam furnaces
|
|
Two new walking beam reheat furnaces bringing benefits on productivity, quality and operational cost
|
|
2021
|
|
|
Brazil
|
|
ArcelorMittal Vega Do Sul (Brazil)
|
|
Expansion project
|
|
Increase hot dipped galvanizing (HDG) capacity by 0.6 million tonnes/year and cold rolling (CR) capacity by 0.7 million tonnes/year
|
|
On hold
|
|
|
Brazil
|
|
Juiz de Fora (Brazil)
|
|
Melt shop expansion
|
|
Increase in melt shop capacity by 0.2 million tonnes/year
|
|
On hold
|
|
1
|
Brazil
|
|
Monlevade (Brazil)
|
|
Sinter plant, blast furnace and melt shop
|
|
Increase in liquid steel capacity by 1.2 million tonnes/year;
|
|
On hold
|
|
|
Sinter feed capacity of 2.3 million tonnes/year
|
|
|
|
|
||||||
Mining
|
|
Liberia
|
|
Phase 2 expansion project
|
|
Increase production capacity to 15 million tonnes/year
|
|
Under review
|
|
4
|
1
|
Although the Monlevade wire rod expansion project and Juiz de Fora rebar expansion were completed in 2015, and Juiz de Fora melt shop is currently on hold and is expected to be completed upon Brazil domestic market recovery, the Company does not expect to increase shipments until domestic demand improves.
|
2
|
In support of the Company’s Action 2020 program that was launched at its fourth quarter and full-year 2015 earnings announcement, the footprint optimization project at ArcelorMittal Indiana Harbor is now complete, which has resulted in structural changes required to improve asset and cost optimization. The plan involved idling redundant operations including the #1 aluminize line, 84” hot strip mill ("HSM"), and #5 continuous galvanizing line ("CGL") and No.2 steel shop (idled in the second quarter of 2017) whilst making further planned investments totaling ~$200 million including a new caster at No.3 steelshop (completed in the fourth quarter of 2016), restoration of the 80” HSM and Indiana Harbor finishing are ongoing. The full project scope is expected to be completed in 2018.
|
3
|
Ongoing projects refer to projects for which construction has begun (excluding various projects that are under development), even if such projects have been placed on hold pending improved operating conditions.
|
4
|
ArcelorMittal Liberia is moving ore extraction from its depleting DSO (direct shipping ore) deposit at Tokadeh to the nearby, low strip ratio and higher-grade DSO Gangra deposit where planned ramp up has progressed, reaching a 5 million tonnes run rate at the end of December 2017. Following a period of exploration cessation caused by the onset of Ebola, ArcelorMittal Liberia recommenced drilling for DSO resource extensions in late 2015. During 2016, the operation at Tokadeh was right-sized to focus on its “natural” Atlantic markets. The nearby Gangra deposit has been developed as part of the staged approach as opposed to the originally planned phase 2 step up to 15Mtpa of concentrate sinter fine ore product that was delayed in August 2014 due to the declaration of force majeure by contractors following the Ebola virus outbreak, and then reassessed following rapid iron ore price declines over the period since. The Gangra mine, haul road and related existing plant and equipment upgrades are nearing completion. ArcelorMittal remains committed to Liberia where it operates a full value chain of mine, rail and port and where it has been operating the mine on a DSO basis since 2011. The Company believes that ArcelorMittal Liberia presents a strong, competitive source of product ore for the international market based on continuing DSO mining and then moving to a long-term sinter feed concentration phase.
|
5
|
On September 28, 2017, ArcelorMittal announced a major $1 billion, three-year investment program at its Mexican operations, which is focused on building ArcelorMittal Mexico’s downstream capabilities, sustaining the competitiveness of its mining operations and modernizing its existing asset base. The program is designed to enable ArcelorMittal Mexico to meet the anticipated increased demand requirements from domestic customers, realize in full ArcelorMittal Mexico’s production capacity of 5.3 million tonnes and significantly enhance the proportion of higher-value added products in its product mix, in-line with the Company’s Action 2020 strategic plan. The main investment will be the construction of a new HSM. Construction will take approximately three years and, upon completion, will enable ArcelorMittal Mexico to produce approximately 2.5 million tonnes of flat rolled steel, approximately 1.8 million tonnes of long steel and the remainder made up of semi-finished slabs. Coils from the new HSM will be supplied to domestic, non-auto, general industry customers. The project commenced late in the fourth quarter of 2017 and is expected to be completed in the second quarter of 2020. The Company expects capital expenditures of approximately $350 million with respect to this program in 2018.
|
•
|
Reserves are the part of a mineral deposit that could be economically and legally extracted or produced at the time of the reserve determination.
|
•
|
Proven reserves are reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, working or drill holes; grade and/or quality are computed from the results of detailed sampling; and (b) the sites for inspection, sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of reserves are well-established.
|
•
|
Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven reserves, but the sites for inspection, sampling and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation.
|
|
|
As of December 31, 2017
|
|
As of December 31, 2016
|
||||||||||||||||
|
|
Proven Ore Reserves
|
|
Probable Ore Reserves
|
|
Total Ore Reserves
|
|
Total Ore Reserves
|
||||||||||||
|
|
Millions of Tonnes
|
|
% Fe
|
|
Millions of Tonnes
|
|
% Fe
|
|
Millions of Tonnes
|
|
% Fe
|
|
Millions of Tonnes
|
|
% Fe
|
||||
Canada (Excluding Baffinland)
|
|
1,923
|
|
|
28.1
|
|
67
|
|
|
26.2
|
|
1,990
|
|
|
28.0
|
|
2,056
|
|
|
28.1
|
Baffinland - Canada
|
|
309
|
|
|
65.1
|
|
90
|
|
|
64.7
|
|
399
|
|
|
65.0
|
|
374
|
|
|
65.8
|
Minorca - USA
|
|
106
|
|
|
23.8
|
|
4
|
|
|
22.7
|
|
110
|
|
|
23.7
|
|
118
|
|
|
23.7
|
Hibbing - USA
|
|
157
|
|
|
19.6
|
|
25
|
|
|
19.6
|
|
182
|
|
|
19.6
|
|
235
|
|
|
19.6
|
Mexico (Excluding Peña Colorada)
|
|
11
|
|
|
38.0
|
|
118
|
|
|
32.1
|
|
129
|
|
|
32.7
|
|
128
|
|
|
32.7
|
Peña Colorada - Mexico
|
|
124
|
|
|
21.6
|
|
109
|
|
|
20.8
|
|
233
|
|
|
21.2
|
|
244
|
|
|
21.3
|
Brazil
|
|
57
|
|
|
63.7
|
|
15
|
|
|
51.3
|
|
72
|
|
|
61.1
|
|
78
|
|
|
61.2
|
Liberia
|
|
5
|
|
|
52.0
|
|
484
|
|
|
48.0
|
|
489
|
|
|
48.0
|
|
491
|
|
|
48.1
|
Bosnia
|
|
4
|
|
|
45.9
|
|
13
|
|
|
46.3
|
|
17
|
|
|
46.2
|
|
19
|
|
|
46.0
|
Ukraine Open Pit
|
|
73
|
|
|
33.8
|
|
78
|
|
|
33.5
|
|
151
|
|
|
33.7
|
|
154
|
|
|
33.3
|
Ukraine Underground
|
|
10
|
|
|
54.4
|
|
19
|
|
|
54.4
|
|
29
|
|
|
54.4
|
|
22
|
|
|
53.7
|
Kazakhstan Open Pit
|
|
5
|
|
|
40.1
|
|
260
|
|
|
39.2
|
|
265
|
|
|
39.2
|
|
268
|
|
|
39.2
|
Kazakhstan Underground
|
|
—
|
|
|
—
|
|
24
|
|
|
45.2
|
|
24
|
|
|
45.2
|
|
26
|
|
|
45.4
|
Total
|
|
|
|
|
|
|
|
|
|
4,090
|
|
|
35.2
|
|
4,213
|
|
|
34.8
|
Operations/Projects
|
|
% Ownership
|
|
In Operation Since
|
|
2017 Run of Mine Production
(Million Tonnes)* |
|
2017 Saleable Production
(Million Tonnes) 1 * |
|
Estimated Mine Life (Years)
2
|
Canada (Excluding Baffinland)
|
|
85
|
|
1976
|
|
66.8
|
|
25.3
|
|
28
|
Baffinland - Canada
|
|
31
|
|
2014
|
|
4.7
|
|
4.6
|
|
35
|
Minorca - USA
|
|
100
|
|
1977
|
|
8.7
|
|
2.9
|
|
13
|
Hibbing - USA
|
|
62
|
|
1976
|
|
28.3
|
|
7.8
|
|
7
|
Mexico (Excluding Peña Colorada)
|
|
100
|
|
1976
|
|
7.2
|
|
3.3
|
|
18
|
Peña Colorada - Mexico
|
|
50
|
|
1974
|
|
12.4
|
|
3.6
|
|
15
|
Brazil
|
|
100
|
|
1944
|
|
4.0
|
|
3.1
|
|
45
|
Liberia
|
|
85
|
|
2011
|
|
1.9
|
|
2.0
|
|
24
|
Bosnia
|
|
51
|
|
2008
|
|
2.2
|
|
1.6
|
|
7
|
Ukraine Open Pit
|
|
95
|
|
1959
|
|
21.2
|
|
9.1
|
|
6
|
Ukraine Underground
|
|
95
|
|
1933
|
|
0.8
|
|
0.8
|
|
19
|
Kazakhstan Open Pit
|
|
100
|
|
1976
|
|
3.0
|
|
1.6
|
|
52
|
Kazakhstan Underground
|
|
100
|
|
1956
|
|
1.7
|
|
1.0
|
|
11
|
1
|
Saleable production is constituted of a mix of direct shipping ore, concentrate, pellet feed and pellet products which have a typical iron content of 65% to 66% Fe. Exceptions in 2017 included direct shipping ores produced in the Bosnia, Ukraine Underground and Kazakhstan mines which have an iron content ranging between 50% to 60% Fe and are solely for internal use at ArcelorMittal’s regional steel plants. The direct shipping ore produced from Liberia had an average iron content of approximately 60% Fe in 2017 while the sinter fines produced for external customers in Brazil from the Serra Azul operations averaged approximately 62% Fe and the lumps averaged 58% Fe.
|
2
|
The estimated mine life reported in this table corresponds to the duration of the production life of each operation based on the 2017 year-end iron ore reserve estimates only. The production varies for each operation during the mine life and, as a result, mine life is not equal to the total reserve tonnage divided by the 2017 production.
|
*
|
Represents 100% of production.
|
|
|
As of December 31, 2017
|
|
As of December 31, 2016
|
||||||||||||||||||
|
|
Proven Coal Reserves
|
|
Probable Coal Reserves
|
|
Total Coal Reserves
|
|
Total Coal Reserves
|
||||||||||||||
ROM Millions of Tonnes
|
|
Wet Recoverable Million Tonnes
|
|
ROM Millions of Tonnes
|
|
Wet Recoverable Million Tonnes
|
|
ROM Millions of Tonnes
|
|
Wet Recoverable Million Tonnes
|
|
Ash
(%) |
|
Sulfur (%)
|
|
Volatile (%)
|
|
Millions of Tonnes
|
|
Wet Recoverable Million Tonnes
|
||
Princeton - USA
|
|
53
|
|
34
|
|
35
|
|
22
|
|
88
|
|
56
|
|
5.5
|
|
0.6
|
|
14.6
|
|
108
|
|
66
|
Karaganda - Kazakhstan
|
|
11
|
|
6
|
|
125
|
|
52
|
|
136
|
|
57
|
|
34.1
|
|
0.6
|
|
28.5
|
|
146
|
|
62
|
Total
|
|
|
|
|
|
|
|
|
|
224
|
|
114
|
|
20.0
|
|
0.6
|
|
21.6
|
|
254
|
|
128
|
Operations/Projects
|
|
% Ownership
|
|
In Operation Since
|
|
2017 Run of Mine Production
(Million Tonnes) |
|
2017 Wet Recoverable production
(Million Tonnes) |
|
Estimated Mine Life (Years)
1
|
Princeton - USA
|
|
100
|
|
1995
|
|
3.3
|
|
2.1
|
|
35
|
Karaganda - Kazakhstan
|
|
100
|
|
1934
|
|
10.5
|
|
4.3
|
|
10
|
1
|
The estimated mine life reported in this table corresponds to the duration of the production life of each operation based on the 2017 year-end metallurgical coal reserve estimates only. The production varies for each operation during the mine life and as a result, mine life is not equal to the total reserve tonnage divided by the 2017 production.
|
ITEM 4A.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 5.
|
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
|
Flat products
|
|
|
|
|
Source: Steel Business Briefing (SBB)
|
Northern Europe
|
Southern Europe
|
United States
|
China
|
Spot HRC average price per tonne
|
Spot HRC average price per tonne
|
Spot HRC average price per tonne
|
Spot HRC average price per tonne, VAT excluded
|
|
Q1 2015
|
€409
|
€400
|
$578
|
$359
|
Q2 2015
|
€402
|
€389
|
$505
|
$328
|
Q3 2015
|
€375
|
€353
|
$505
|
$268
|
Q4 2015
|
€330
|
€299
|
$430
|
$251
|
|
|
|
|
|
Q1 2016
|
€329
|
€303
|
$456
|
$282
|
Q2 2016
|
€413
|
€400
|
$639
|
$353
|
Q3 2016
|
€426
|
€402
|
$650
|
$348
|
Q4 2016
|
€498
|
€474
|
$586
|
$423
|
|
|
|
|
|
Q1 2017
|
€569
|
€537
|
$694
|
$458
|
Q2 2017
|
€521
|
€491
|
$682
|
$396
|
Q3 2017
|
€517
|
€500
|
$687
|
$509
|
Q4 2017
|
€538
|
€510
|
$685
|
$538
|
Long products
|
|
|
|
Source: Steel Business Briefing (SBB)
|
Europe medium sections
|
Europe rebar
|
Turkish rebar
|
Spot average price per tonne
|
Spot average price per tonne
|
Spot average price per tonne
|
|
Q1 2015
|
€517
|
€417
|
$458
|
Q2 2015
|
€526
|
€422
|
$444
|
Q3 2015
|
€516
|
€409
|
$388
|
Q4 2015
|
€480
|
€370
|
$334
|
|
|
|
|
Q1 2016
|
€454
|
€355
|
$335
|
Q2 2016
|
€509
|
€453
|
$442
|
Q3 2016
|
€511
|
€440
|
$379
|
Q4 2016
|
€488
|
€424
|
$409
|
|
|
|
|
Q1 2017
|
€515
|
€463
|
$424
|
Q2 2017
|
€501
|
€441
|
$427
|
Q3 2017
|
€530
|
€469
|
$507
|
Q4 2017
|
€587
|
€553
|
$527
|
|
Sales for the year ended December 31,
1
|
|
Operating income (loss) for the year ended December 31,
2
|
||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
Segment
|
(in $ millions)
|
|
(in $ millions)
|
|
(in $ millions)
|
|
(in $ millions)
|
|
(in $ millions)
|
|
(in $ millions)
|
NAFTA
|
17,997
|
|
15,806
|
|
17,293
|
|
1,185
|
|
2,002
|
|
(705)
|
Brazil
|
7,755
|
|
6,223
|
|
8,503
|
|
697
|
|
614
|
|
628
|
Europe
|
36,208
|
|
29,272
|
|
31,893
|
|
2,359
|
|
1,270
|
|
171
|
ACIS
|
7,621
|
|
5,885
|
|
6,128
|
|
508
|
|
211
|
|
(624)
|
Mining
|
4,033
|
|
3,114
|
|
3,387
|
|
991
|
|
366
|
|
(3,522)
|
Others and eliminations
|
(4,935)
|
|
(3,509)
|
|
(3,626)
|
|
(306)
|
|
(302)
|
|
(109)
|
Total
|
68,679
|
|
56,791
|
|
63,578
|
|
5,434
|
|
4,161
|
|
(4,161)
|
1.
|
Amounts are prior to inter-segment eliminations (except for total) and sales include non-steel sales.
|
2.
|
Others and eliminations to segment operating income reflects certain adjustments made to operating income of the segments to reflect corporate costs, income from non-steel operations (e.g. energy, logistics and shipping services) and the elimination of stock margins between segments. See table below.
|
|
1.
|
Includes primarily staff and other holding costs and results from shared service activities. In 2015, Corporate and shared services includes the sale of corporate assets.
|
2.
|
In 2017, fourth quarter iron ore prices decreased as compared to the fourth quarter of 2016 leading to lower stock margin eliminations. In 2016, as compared to 2015, margins increased mainly as a result of the recovery of iron ore prices and cost reductions leading to an increase in intragroup margin eliminations.
|
NAFTA
|
|
|
|
|
|
|
Performance for the year ended December 31,
|
||||
(in millions of USD unless otherwise shown)
|
2017
|
|
2016
|
|
2015
|
Sales
|
17,997
|
|
15,806
|
|
17,293
|
Depreciation
|
518
|
|
549
|
|
616
|
Impairments
|
—
|
|
—
|
|
526
|
Operating income / (loss)
|
1,185
|
|
2,002
|
|
(705)
|
Crude steel production (thousand tonnes)
|
23,480
|
|
22,208
|
|
22,795
|
Steel shipments (thousand tonnes)
|
21,834
|
|
21,281
|
|
21,306
|
Average steel selling price (USD/tonne)
|
742
|
|
672
|
|
732
|
Brazil
|
|
|
|
|
|
|
Performance for the year ended December 31,
|
||||
(in millions of USD unless otherwise shown)
|
2017
|
|
2016
|
|
2015
|
Sales
|
7,755
|
|
6,223
|
|
8,503
|
Depreciation
|
293
|
|
258
|
|
336
|
Impairments
|
—
|
|
—
|
|
176
|
Operating income / (loss)
|
697
|
|
614
|
|
628
|
Crude steel production (thousand tonnes)
|
11,210
|
|
11,133
|
|
11,612
|
Steel shipments (thousand tonnes)
|
10,840
|
|
10,753
|
|
11,540
|
Average steel selling price (USD/tonne)
|
667
|
|
536
|
|
647
|
Europe
|
|
|
|
|
|
|
Performance for the year ended December 31,
|
||||
(in millions of USD unless otherwise shown)
|
2017
|
|
2016
|
|
2015
|
Sales
|
36,208
|
|
29,272
|
|
31,893
|
Depreciation
|
1,201
|
|
1,184
|
|
1,192
|
Impairments
|
—
|
|
49
|
|
398
|
Operating income / (loss)
|
2,359
|
|
1,270
|
|
171
|
Crude steel production (thousand tonnes)
|
43,768
|
|
42,635
|
|
43,853
|
Steel shipments (thousand tonnes)
|
40,941
|
|
40,247
|
|
40,676
|
Average steel selling price (USD/tonne)
|
702
|
|
568
|
|
609
|
ACIS
|
|
|
|
|
|
|
Performance for the year ended December 31,
|
||||
(in millions of USD unless otherwise shown)
|
2017
|
|
2016
|
|
2015
|
Sales
|
7,621
|
|
5,885
|
|
6,128
|
Depreciation
|
313
|
|
311
|
|
408
|
Impairments
|
206
|
|
156
|
|
294
|
Operating income / (loss)
|
508
|
|
211
|
|
(624)
|
Crude steel production (thousand tonnes)
|
14,678
|
|
14,792
|
|
14,219
|
Steel shipments (thousand tonnes)
|
13,094
|
|
13,271
|
|
12,485
|
Average steel selling price (USD/tonne)
|
515
|
|
395
|
|
432
|
Mining
|
|
|
|
|
|
|
|
|
|
|
Performance for the year ended December 31,
|
||||
(in millions of USD unless otherwise shown)
|
Note
|
|
2017
|
|
2016
|
|
2015
|
Sales
|
|
|
4,033
|
|
3,114
|
|
3,387
|
Depreciation
|
|
|
416
|
|
396
|
|
614
|
Impairments
|
|
|
—
|
|
—
|
|
3,370
|
Operating income / (loss)
|
|
|
991
|
|
366
|
|
(3,522)
|
|
|
|
|
|
|
|
|
Own iron ore production (million tonnes)
|
|
|
57.4
|
|
55.2
|
|
62.8
|
Iron ore shipped externally and internally at market price (million tonnes)
|
1,2
|
|
35.7
|
|
33.6
|
|
40.3
|
Iron ore shipment - cost plus basis (million tonnes)
|
1
|
|
22.2
|
|
22.3
|
|
22.1
|
|
|
|
|
|
|
|
|
Own coal production (million tonnes)
|
|
|
6.3
|
|
6.3
|
|
6.1
|
Coal shipped externally and internally at market price (million tonnes)
|
1,2
|
|
2.8
|
|
3.4
|
|
2.8
|
Coal shipment - cost plus basis (million tonnes)
|
1
|
|
3.5
|
|
3.4
|
|
3.2
|
1.
|
There are three categories of sales: (1) “External sales”: mined product sold to third parties at market price; (2) “Market-priced tonnes”: internal sales of mined product to ArcelorMittal facilities reported at prevailing market prices; (3) “Cost-plus tonnes”: internal sales of mined product to ArcelorMittal facilities on a cost-plus basis. The determinant of whether internal sales are reported at market price or reported at cost-plus is whether or not the raw material could practically be sold to third parties (i.e., there is a potential market for the product and logistics exist to access that market).
|
2.
|
Market-priced tonnes represent amounts of iron ore and coal from ArcelorMittal mines that could practically be sold to third parties. Market-priced tonnes that are transferred from the Mining segment to the Company’s steel producing segments are reported at the prevailing market price. Shipments of raw materials that do not constitute market-priced tonnes are transferred internally on a cost-plus basis.
|
|
Note
|
|
|
|
|
|
Year ended December 31,
|
||||
Iron ore production (million metric tonnes)
|
1
|
|
Type
|
|
Product
|
|
2017
|
|
2016
|
|
2015
|
Own mines
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
2
|
|
Open pit
|
|
Concentrate, lump, fines and pellets
|
|
38.1
|
|
35.9
|
|
39.0
|
South America
|
|
|
Open pit
|
|
Lump and fines
|
|
3.2
|
|
3.1
|
|
3.5
|
Europe
|
|
|
Open pit
|
|
Concentrate and lump
|
|
1.6
|
|
1.8
|
|
2.1
|
Africa
|
|
|
Open pit / Underground
|
|
Fines
|
|
2.0
|
|
2.1
|
|
4.3
|
Asia, CIS & Other
|
|
|
Open pit / Underground
|
|
Concentrate, lump, fines and sinter feed
|
|
12.5
|
|
12.3
|
|
13.9
|
Total own iron ore production
|
|
|
|
|
|
|
57.4
|
|
55.2
|
|
62.8
|
Strategic long-term contracts - iron ore
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
3
|
|
Open pit
|
|
Pellets
|
|
0.9
|
|
6.1
|
|
6.6
|
Africa
|
4
|
|
Open pit
|
|
Lump and fines
|
|
—
|
|
0.8
|
|
4.3
|
Total strategic long-term contracts - iron ore
|
|
|
|
|
|
|
0.9
|
|
6.9
|
|
10.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
58.3
|
|
62.1
|
|
73.7
|
1.
|
Total of all finished production of fines, concentrate, pellets and lumps.
|
2.
|
Includes own mines and share of production from Hibbing (United States, 62.30%) and Peña (Mexico, 50%).
|
3.
|
Consists of a long-term supply contract with Cliffs Natural Resources which expired in the first quarter of 2017.
|
4.
|
The production for year ended 2015 includes purchases under strategic agreements with Sishen Iron Ore Company (Proprietary) Limited’s (“SIOC”) Kumba and Thabazimbi mines (South Africa). On November 6, 2015, ArcelorMittal announced that an agreement had been reached with SIOC to amend the pricing mechanism terms of the current iron ore supply agreement related to Kumba from a cost-based price to an Export Parity Price (“EPP”) with effect from October 1, 2015. The EPP is calculated on the basis of the Platts 62% Fe CFR China Fines Index (the “Index price”) and, at certain price levels, ArcelorMittal receives a discounted price. As a result of this amendment, the contract related to Kumba was no longer considered as a strategic contract in 2016.
|
|
Note
|
|
Year ended December 31,
|
||||
Coal production (million metric tonnes)
|
|
2017
|
|
2016
|
|
2015
|
|
Own mines
|
|
|
|
|
|
|
|
North America
|
|
|
2.06
|
|
1.80
|
|
1.57
|
Asia, CIS & Other
|
|
|
4.25
|
|
4.45
|
|
4.58
|
Total own coal production
|
|
|
6.31
|
|
6.25
|
|
6.15
|
Strategic long-term contracts - coal
|
|
|
|
|
|
|
|
North America
|
1
|
|
—
|
|
—
|
|
0.14
|
Total strategic long-term contracts - coal
|
|
|
—
|
|
—
|
|
0.14
|
|
|
|
|
|
|
|
|
Total
|
|
|
6.31
|
|
6.25
|
|
6.29
|
1.
|
Includes strategic agreement - prices on a fixed price basis.
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
Statutory income tax
|
|
Statutory income tax rate
|
|
Statutory income tax
|
|
Statutory income tax rate
|
|
Statutory income tax
|
|
Statutory income tax rate
|
United States
|
(98)
|
|
21.00%
|
|
224
|
|
35.00%
|
|
(863)
|
|
35.00%
|
Argentina
|
15
|
|
25.00%
|
|
22
|
|
35.00%
|
|
50
|
|
35.00%
|
France
|
112
|
|
25.82%
|
|
17
|
|
28.92%
|
|
(32)
|
|
34.43%
|
Brazil
|
69
|
|
34.00%
|
|
86
|
|
34.00%
|
|
(48)
|
|
34.00%
|
Belgium
|
105
|
|
25.00%
|
|
71
|
|
33.99%
|
|
64
|
|
33.99%
|
Germany
|
7
|
|
30.30%
|
|
(37)
|
|
30.30%
|
|
(43)
|
|
30.30%
|
Spain
|
(4)
|
|
25.00%
|
|
(47)
|
|
25.00%
|
|
(146)
|
|
25.00%
|
Luxembourg
|
1,139
|
|
26.01%
|
|
196
|
|
26.01%
|
|
(613)
|
|
29.22%
|
Mexico
|
(18)
|
|
30.00%
|
|
53
|
|
30.00%
|
|
(55)
|
|
30.00%
|
South Africa
|
(115)
|
|
28.00%
|
|
(96)
|
|
28.00%
|
|
(199)
|
|
28.00%
|
Canada
|
190
|
|
25.90%
|
|
98
|
|
26.10%
|
|
247
|
|
26.90%
|
Kazakhstan
|
77
|
|
20.00%
|
|
36
|
|
20.00%
|
|
(48)
|
|
20.00%
|
Czech Republic
|
(21)
|
|
19.00%
|
|
3
|
|
19.00%
|
|
9
|
|
19.00%
|
Poland
|
30
|
|
19.00%
|
|
33
|
|
19.00%
|
|
23
|
|
19.00%
|
Romania
|
(7)
|
|
16.00%
|
|
(11)
|
|
16.00%
|
|
(10)
|
|
16.00%
|
Ukraine
|
47
|
|
18.00%
|
|
20
|
|
18.00%
|
|
11
|
|
18.00%
|
Trinidad & Tobago
|
—
|
|
25.00%
|
|
66
|
|
25.00%
|
|
(83)
|
|
25.00%
|
Liberia
|
(18)
|
|
25.00%
|
|
6
|
|
25.00%
|
|
(388)
|
|
25.00%
|
United Kingdom
|
(1)
|
|
17.00%
|
|
15
|
|
17.00%
|
|
17
|
|
20.00%
|
Switzerland
|
(67)
|
|
7.83%
|
|
(13)
|
|
7.83%
|
|
1
|
|
7.83%
|
Others
|
(35)
|
|
|
|
(65)
|
|
|
|
(40)
|
|
|
Total
|
1,407
|
|
|
|
677
|
|
|
|
(2,146)
|
|
|
|
Repayment amounts per year (in billions of $)
|
||||||||||||||
Type of indebtedness as of December 31, 2017
|
|
2018
|
2019
|
2020
|
2021
|
2022
|
>2022
|
Total
|
|||||||
Bonds
|
|
0.9
|
|
0.9
|
|
1.9
|
|
1.4
|
|
1.5
|
|
2.8
|
|
9.4
|
|
Long-term revolving credit lines
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
- $2.3 billion tranche of $5.5 billion revolving credit facility
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
- $3.2 billion tranche of $5.5 billion revolving credit facility
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Commercial paper
|
|
1.1
|
|
|
|
|
|
|
1.1
|
|
|||||
Other loans
|
|
0.8
|
|
0.3
|
|
0.2
|
|
0.4
|
|
0.2
|
|
0.5
|
|
2.4
|
|
Total gross debt
|
|
2.8
|
|
1.2
|
|
2.1
|
|
1.8
|
|
1.7
|
|
3.3
|
|
12.9
|
|
Credit lines available
|
Facility
amount |
|
Drawn
|
|
Available
|
$2.3 billion tranche of $5.5 billion revolving credit facility
|
$2.3
|
|
—
|
|
$2.3
|
$3.2 billion tranche of $5.5 billion revolving credit facility
|
$3.2
|
|
—
|
|
$3.2
|
Total committed lines
|
$5.5
|
|
—
|
|
$5.5
|
•
|
$441 million of its U.S. dollar denominated 6.250% Notes due February 25, 2022 (the “USD 2022 Notes”) for a total aggregate purchase price (including premiums and accrued interest) of $510 million. Following this purchase, $659 million principal amount of the USD 2022 Notes remained outstanding.
|
•
|
$371 million of its U.S. dollar denominated 6.75% Notes due March 1, 2041 (the “USD 2041 Notes”) for a total aggregate purchase price (including premiums and accrued interest) of $445 million. Following this purchase, $629 million principal amount of the USD 2041 Notes remained outstanding.
|
•
|
$383 million of its U.S. dollar denominated 7.000% Notes due October 15, 2039 (the “2039 Notes”) for a total aggregate purchase price (including premiums and accrued interest) of $464 million. Following this purchase, $1,117 million principal amount of the USD 2039 Notes remained outstanding.
|
Summary of cash flow
|
For the year ended December 31,
|
||||
(in $ millions)
|
2017
|
|
2016
|
|
2015
|
Net cash provided by operating activities
|
4,563
|
|
2,708
|
|
2,151
|
Net cash used in investing activities
|
(2,830)
|
|
(1,143)
|
|
(2,170)
|
Net cash (used in) provided by financing activities
|
(1,731)
|
|
(2,926)
|
|
395
|
(amounts in $ millions)
|
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
|||||
Debt obligations—scheduled repayments—note 6.1.2 to the consolidated financial statements
|
|
12,928
|
|
|
2,785
|
|
|
3,311
|
|
|
3,499
|
|
|
3,333
|
|
Operating lease obligations—note 8.3 to the consolidated financial statements
|
|
1,311
|
|
|
315
|
|
|
412
|
|
|
252
|
|
|
332
|
|
Environmental commitments and asset retirement obligations—note 8.1 and note 8.2 to the consolidated financial statements
1
|
|
1,242
|
|
|
96
|
|
|
305
|
|
|
187
|
|
|
654
|
|
Purchase obligations—note 8.3 to the consolidated financial statements
|
|
24,734
|
|
|
7,082
|
|
|
7,247
|
|
|
3,792
|
|
|
6,614
|
|
Funding contribution to the pension and post-employment plans
2
|
|
443
|
|
|
443
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Scheduled interest payments
|
|
4,364
|
|
|
517
|
|
|
903
|
|
|
565
|
|
|
2,379
|
|
Other long-term liabilities
|
|
306
|
|
|
—
|
|
|
200
|
|
|
21
|
|
|
85
|
|
Acquisition/investment commitments—note 8.3 to the consolidated financial statements
|
|
878
|
|
|
359
|
|
|
499
|
|
|
19
|
|
|
1
|
|
Total
|
|
46,206
|
|
|
11,597
|
|
|
12,877
|
|
|
8,335
|
|
|
13,398
|
|
1
|
ArcelorMittal may be subject to additional environmental liabilities not included in the table above.
|
2
|
The funding contributions to the pension and post-retirement plans are presented for the following year and to the extent known.
|
ITEM 6.
|
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
|
Chairman
|
Lead Independent Director
|
* Chairs the Board of Directors' and shareholders' meetings
|
* Provides independent leadership to the Board of Directors
|
* Works with the Lead Independent Director to set agenda for the Board of Directors and reviews the schedule of the meetings
|
* Presides at executive sessions of independent directors
|
* Serves as a public face of the Board of Directors and of the Company
|
* Advises the Chairman of any decisions reached and suggestions made at the executive sessions, as appropriate
|
* Serves as a resource for the Board of Directors
|
* Coordinates the activities of the other independent directors
|
* Guides discussions at the Board of Directors meetings and encourages directors to express their positions
|
* Oversees Board of Directors' governance processes, including succession planning and other governance-related matters
|
* Communicates significant business developments and time-sensitive matters to the Board of Directors
|
* Liaison between the Chairman and the other independent directors
|
* Is responsible for managing day-to-day business and affairs of the Company
|
* Calls meetings of the independent directors when necessary and appropriate
|
* Interacts with the CEO Office and Executive Officers of the Company and frequently meets stakeholders and provides feedback to the Board of Directors
|
* Leads the Board of Directors’ self-evaluation process and such other duties as are assigned from time to time by the Board of Directors
|
Name
|
|
Age
4
|
|
Date of joining the Board
5
|
|
End of Term
|
|
Position within ArcelorMittal
|
Lakshmi N. Mittal
|
|
67
|
|
May 1997
|
|
May 2020
|
|
Chairman of the Board of Directors and Chief Executive Officer
|
Vanisha Mittal Bhatia
|
|
37
|
|
December 2004
|
|
May 2019
|
|
Director
|
Jeannot Krecké
|
|
67
|
|
January 2010
|
|
May 2019
|
|
Director
|
Suzanne P. Nimocks
2 3
|
|
58
|
|
January 2011
|
|
May 2019
|
|
Director
|
Bruno Lafont
1 2 3
|
|
61
|
|
May 2011
|
|
May 2020
|
|
Lead Independent Director
|
Tye Burt
2 3
|
|
60
|
|
May 2012
|
|
May 2018
|
|
Director
|
Michel Wurth
|
|
63
|
|
May 2014
|
|
May 2020
|
|
Director
|
Karyn Ovelmen
1 3
|
|
54
|
|
May 2015
|
|
May 2018
|
|
Director
|
Karel de Gucht
1 3
|
|
63
|
|
May 2016
|
|
May 2019
|
|
Director
|
1
|
Member of the Audit & Risk Committee.
|
2
|
Member of the Appointments, Remuneration and Corporate Governance Committee.
|
3
|
Non-executive and independent director.
|
4
|
Age as of December 31, 2017.
|
5
|
Date of joining the Board of ArcelorMittal or, if prior to 2006, its predecessor Mittal Steel Company NV.
|
Name
|
|
Age
1
|
|
Position
|
Lakshmi N. Mittal
|
|
67
|
|
Chairman and Chief Executive Officer of ArcelorMittal
|
Aditya Mittal
|
|
41
|
|
Chief Financial Officer of ArcelorMittal, Investor Relations, and Chief Executive Officer of ArcelorMittal Europe
|
Brian Aranha
|
|
62
|
|
Executive vice president, head of strategy, CTO, R&D, CCM, and global automotive
|
Henri Blaffart
|
|
62
|
|
Executive vice president, group head of HR and corporate services
|
Jefferson de Paula
|
|
59
|
|
Executive vice president, CEO ArcelorMittal South America Long
|
Robrecht Himpe
|
|
59
|
|
Executive vice president, president and CEO AM/NS Calvert, CEO ArcelorMittal North America
|
Geert Van Poelvoorde
|
|
52
|
|
Executive vice president, CEO ArcelorMittal Europe Flat
|
Simon C. Wandke
|
|
58
|
|
Executive vice president, CEO ArcelorMittal Mining
|
1
|
Age as of December 31, 2017.
|
Content
|
|
Annual statement by the ARCG Committee Chairman
|
|
Board of Directors
|
|
Remuneration at a glance - senior management
|
Overview of our remuneration policy and rationale of each performance metrics
|
Remuneration at a glance - 2017 pay outcomes
|
Comparison of pay outcomes 2017 vs. 2016
Explanation of results for 2016 short-term incentives paid in 2017
|
Remuneration
|
|
Remuneration strategy
|
Explanation of what informs the ARCG's decision on pay
|
Remuneration policy
|
Explanation of policies applied to senior management
|
Remuneration mix
|
Overview of the remuneration mix for senior management
|
2017 Total remuneration
|
Overview of 2017 outcomes
|
Short-term incentives
|
Description of short-term incentives ("STI") plan
|
Long-term incentives plan
|
Description of long-term incentives plan ("LTIP" or "LTI"s)
|
Global stock option plan
|
Description of global stock option plan
|
Other benefits
|
Description of other benefits
|
SOX 304 and Clawback
|
Explanation of SOX section 304 rules regarding clawbacks of CEO/CFO remuneration
|
|
|
Abbreviations
|
|
EBITDA
|
Operating income plus depreciation, impairment expenses and exceptional items
|
FCF
|
Free cash flow
|
STI
|
Short-term incentives
|
LTI/LTIP
|
Long-term incentives (plans)
|
EPS
|
Earnings per share
|
PSU
|
Performance share units
|
RSU
|
Restricted share units
|
ROCE
|
Return on capital employed
|
TSR
|
Total shareholder return
|
•
|
Basic director’s remuneration: €144,000 ($151,790);
|
•
|
Lead Independent Director’s remuneration: €204,000 ($215,036);
|
•
|
Additional remuneration for the Chair of the Audit & Risk Committee: €28,000 ($29,515);
|
•
|
Additional remuneration for the other Audit & Risk Committee members: €17,000 ($17,920);
|
•
|
Additional remuneration for the Chairs of the other committees: €16,000 ($16,866); and
|
•
|
Additional remuneration for the members of the other committees: €11,000 ($11,595).
|
|
Year ended December 31,
|
||||||
(Amounts in $ thousands except Long-term incentives information)
|
2017
|
|
2016
|
||||
Base salary
1
|
$
|
1,505
|
|
|
$
|
1,550
|
|
Director fees
|
$
|
1,744
|
|
|
$
|
1,901
|
|
Short-term performance-related bonus
1
|
$
|
2,333
|
|
|
-
|
|
|
Long-term incentives
1, 2
|
49,431
|
|
|
168,214
|
|
1
|
Chairman and CEO only. Slight differences between the years are possible, due to foreign currency effects.
|
2
|
See “Item 6.B—Directors, senior management and employees—Compensation—Remuneration—Long-term incentive plan.”
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(Amounts in $ thousands except share information)
|
|
2017
1
|
|
2016
1
|
|
Short-term Incentives
|
|
Short-term Incentives
|
|
Long-term Number of PSUs
|
|
Long-term Number of PSUs
|
Lakshmi N. Mittal
|
|
1,505
|
|
1,550
|
|
2,333
|
|
—
|
|
49,431
|
|
168,214
|
Vanisha Mittal Bhatia
|
|
174
|
|
153
|
|
—
|
|
—
|
|
—
|
|
—
|
Narayanan Vaghul
|
|
69
|
|
182
|
|
—
|
|
—
|
|
—
|
|
—
|
Suzanne P. Nimocks
|
|
187
|
|
164
|
|
—
|
|
—
|
|
—
|
|
—
|
Wilbur L. Ross, Jr.
|
|
32
|
|
171
|
|
—
|
|
—
|
|
—
|
|
—
|
Lewis B. Kaden
|
|
95
|
|
250
|
|
—
|
|
—
|
|
—
|
|
—
|
Bruno Lafont
|
|
255
|
|
171
|
|
—
|
|
—
|
|
—
|
|
—
|
Tye Burt
|
|
187
|
|
164
|
|
—
|
|
—
|
|
—
|
|
—
|
Antoine Spillmann
2
|
|
—
|
|
55
|
|
—
|
|
—
|
|
—
|
|
—
|
Karen Ovelmen
|
|
203
|
|
171
|
|
—
|
|
—
|
|
—
|
|
—
|
Jeannot Krecké
|
|
174
|
|
153
|
|
—
|
|
—
|
|
—
|
|
—
|
Michel Wurth
|
|
174
|
|
153
|
|
—
|
|
—
|
|
—
|
|
—
|
Karel de Gucht
2
|
|
194
|
|
114
|
|
—
|
|
—
|
|
—
|
|
—
|
Total
|
|
3,249
|
|
3,451
|
|
2,333
|
|
—
|
|
49,431
|
|
168,214
|
1
|
Remuneration for non-executive Directors with respect to 2017 (subject to shareholder approval at the annual general meeting to be held on May 9, 2018) will be paid in 2018 and is included in the 2017 column. Remuneration for non-executive Directors with respect to 2016 (paid after shareholder approval at the annual general meeting held on May 10, 2017) is included in the 2016 column. Slight differences between the years are possible, due to foreign currency effects.
|
2
|
Mr. de Gucht was elected to ArcelorMittal’s Board of Directors on May 4, 2016 and Mr. Spillmann stepped down from the Board in May 2016.
|
|
Options granted in 2010
|
|
Options granted in 2009
|
|
Options granted in 2008
|
|
Options Total
|
|
Weighted Average Exercise Price of Options
|
Lakshmi N. Mittal
1
|
18,833
|
|
20,000
|
|
20,000
|
|
58,833
|
|
$146.54
|
Exercise price
|
91.98
|
|
109.14
|
|
235.32
|
|
—
|
|
$146.54
|
Term (in years)
|
10
|
|
10
|
|
10
|
|
—
|
|
—
|
Expiration date
|
Aug. 3, 2020
|
|
Aug. 4, 2019
|
|
Aug. 5, 2018
|
|
—
|
|
—
|
1
|
The options granted in the table above were revised following the completion of the Company's share consolidation of each three existing shares into one share without nominal value on May 22, 2017.
|
1
|
See “Item 6.B—Directors, senior management and employees—Compensation—Remuneration—Long-term incentive plan, for vesting conditions".
|
2
|
The options granted in the table above were revised following the completion of the Company's share consolidation of each three existing shares into one share without nominal value on May 22, 2017.
|
|
Executive
|
Realization as % of business target
|
CEO office
|
Lakshmi Mittal
Aditya Mittal |
135%
|
Corporate
|
Brian Aranha
|
132%
|
Corporate
|
Henri Blaffart
|
135%
|
Flat Carbon Europe
|
Geert van Poelvoorde
|
133%
|
Long Carbon South America
|
Jefferson de Paula
|
43%
|
Mining
|
Simon Wandke
|
85%
|
50% NAFTA
50% Calvert |
Robrecht Himpe
|
94%
|
|
Number of PSUs granted in 2014 outstanding in 2017
|
Number of shares vested
|
CEO
|
42,919
|
32,189
|
CFO and other ex-GMB members
1
|
66,422
|
38,903
|
Vehicle
|
Date of vesting
|
Date of Grant
|
Number of PSUs/RSUs granted to the Executive Officers and outstanding
|
Number of Shares acquired by the Executive Officers
|
PSUs
|
January 1, 2017
Performance approved by ARCG Committee on March 14, 2017
|
September 27, 2013
|
8,450
|
11,758
|
RSUs
|
December 17, 2017
|
December 17, 2014
|
14,668
|
14,668
|
•
|
review and approve corporate goals and objectives regarding remuneration relevant to the CEO Office and Executive Officers and other members of executive management as deemed appropriate by the committee, and assess performance against goals and objectives;
|
•
|
make recommendations to the Board with respect to incentive remuneration plans and equity-based plans;
|
•
|
identify candidates qualified to serve as members of the Board, the CEO Office and Executive Officers;
|
•
|
recommend candidates to the Board for appointment by the general meeting of shareholders or for appointment by the Board to fulfill interim Board vacancies;
|
•
|
develop, monitor and review corporate governance principles applicable to the Company;
|
•
|
facilitate the evaluation of the Board;
|
•
|
review the succession planning and the executive development of the members of the CEO Office and Executive Officers;
|
•
|
submit proposals to the Board on the remuneration of the members of the CEO Office and Executive Officers, and on the appointment of new members thereto and new directors; and
|
•
|
make recommendations to the Board of Directors in respect of the Company’s framework of remuneration for the members of the CEO Office and Executive Officers and such other members of the executive management as designated by the committee. In making such recommendations, the committee may take into account factors that it deems necessary. This may include a member’s total cost of employment (factoring in equity/long term incentives, any perquisites and benefits in kind and pension contributions).
|
•
|
the CEO and the CFO; and
|
•
|
the other Executive Officers.
|
•
|
provide total remuneration competitive with executive remuneration levels of peers of similar size, scope and industry;
|
•
|
encourage and reward performance that will lead to long-term enhancement of shareholder value; and
|
•
|
promote internal pay equity by providing base pay and total remuneration levels that reflect the role, job size and responsibility as well as the performance and effectiveness of the individual.
|
•
|
fixed annual salary;
|
•
|
short-term incentives (i.e., performance-based bonus); and
|
•
|
long-term incentives (i.e., stock options (prior to May 2011), RSUs and PSUs (after May 2011), PSUs only as from 2016).
|
|
|
Chief Executive Officer
|
|
Chief Financial Officer and Executive Officers
|
||||||
(Amounts in $ thousands except for Long-term incentives)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
(5)
|
||
Base salary
1
|
|
1,505
|
|
1,550
|
|
4,709
|
|
8,729
|
||
Retirement benefits
|
|
—
|
|
—
|
|
849
|
|
898
|
||
Other benefits
2
|
|
|
|
41
|
|
42
|
|
250
|
|
225
|
Short-term incentives
3
|
|
|
|
2,333
|
|
—
|
|
4,468
|
|
2,029
|
Long-term incentives
|
|
- fair value in $ thousands
4
|
|
1,130
|
|
2,297
|
|
1,922
|
|
6,882
|
|
|
- number of share units
|
|
49,431
|
|
168,214
|
|
94,553
|
|
509,623
|
1
|
The base salaries of the CEO and CFO were increased by 2% in 2017. In 2016, base salary also included vacation, notice period and severance payments.
|
2
|
Other benefits comprise benefits paid in cash such as lunch allowances, financial services, gasoline and car allowances. Health insurance and other insurances are also included.
|
3
|
Short-term incentives are entirely performance-based and are fully paid in cash. The short-term incentive for a given year relates to the Company’s results in the previous year.
|
4
|
Fair value determined at the grant date is recorded as an expense using the straight line method over the vesting period and adjusted for the effect of non-market based vesting conditions. The remuneration expenses recognized for the PSUs granted to the CEO and to the CFO and Executive Officers was $3 million (net of reversal of expenses relating to unvested PSUs) for the year ended December 31, 2017. The remuneration expenses recognized for the RSUs/PSUs granted to the CEO and to the other GMB members was $2 million for the year ended December 31, 2016.
|
5
|
Jim Baske is included until June 30, 2016, Davinder Chugh is included until July 20, 2016 and Robrecht Himpe is included as from July 1, 2016.
|
•
|
EBITDA at the
Group level: 30% (this acts as “circuit breaker” with respect to group-level financial performance
|
•
|
FCF at the Group level: 20%;
|
•
|
ROCE at the Group level : 20%;
|
•
|
Gap to competition at the Group level: 20%; and
|
•
|
Health and safety performance at the Group level: 10%.
|
•
|
Operating income plus depreciation, impairment expenses and exceptional items (“EBITDA”) at the Group, segment and / or Business unit level: this acts as the “circuit breaker” with respect to financial performance measures except for Mining where the Mining volume is the “circuit breaker”;
|
•
|
FCF at the Group, segment and /or Business unit level;
|
•
|
ROCE at the Group level;
|
•
|
Gap to competition at the Group level;
|
•
|
Health and safety performance; and
|
•
|
Business specific measures for corporate functions.
|
Functional level
|
|
Target achievement threshold @ 80%
|
|
Target achievement @ 100%
|
|
Target achievement ≥ ceiling @ 120%
|
Chief Executive Officer
|
|
50% of base pay
|
|
100% of base pay
|
|
150% of base pay
|
Chief Financial Officer
|
|
40% of base pay
|
|
80% of base pay
|
|
120% of base pay
|
Executive Officers
|
|
30% of base pay
|
|
60% of base pay
|
|
90% of base pay
|
•
|
To consider the comments of shareholders that vesting should not happen below the median and
|
•
|
To adapt to Action 2020 (Special grant)
|
|
|
CEO Office
|
|
Executive Officers
|
||||||
2017 Grant
|
l
|
PSUs with a three-year performance period
|
l
|
PSUs with a three-year performance period
|
||||||
l
|
Performance criteria: 50% TSR (½ vs. S&P 500 and ½ vs. peer group) and 50% EPS vs. peer group
|
l
|
Performance criteria: TSR and Gap to competition in some areas
|
|||||||
l
|
Value at grant: 100% of base salary for the CEO and the CFO
|
l
|
Vesting conditions:
|
|||||||
l
|
Vesting conditions:
|
|
|
|||||||
|
Threshold
|
Target
|
|
|
Threshold
|
Target
|
||||
|
TSR/EPS vs. peer group
|
100% median
|
≥120% median
|
|
TSR vs. peer group
|
100% median
50% vesting |
≥120% median
100% vesting |
|||
|
TSR vs. S&P 500
|
Performance equal to Index
|
≥Performance equal to Index + 2% outperformance
|
|
Gap to competition (where applicable)
|
-
|
100% target
100% vesting |
|||
|
Vesting percentage
|
50%
|
100%
|
|
|
(a)
|
he or she is independent within the meaning of the New York Stock Exchange Listed Company Manual, as applicable to foreign private issuers,
|
(b)
|
he or she is unaffiliated with any shareholder owning or controlling more than two percent of the total issued share capital of ArcelorMittal, and
|
(c)
|
the Board of Directors makes an affirmative determination to this effect.
|
•
|
international and operational experience;
|
•
|
understanding of the industry sectors in which ArcelorMittal operates;
|
•
|
knowledge of world capital markets and being a company listed in several jurisdictions; and
|
•
|
an understanding of the health, safety, environmental, political and community challenges that ArcelorMittal faces.
|
•
|
considers the skills, backgrounds, knowledge, experience and diversity of geographic location, nationality and gender necessary to allow it to meet the corporate purpose;
|
•
|
assesses the skills, backgrounds, knowledge, experience and diversity currently represented;
|
•
|
identifies any inadequate representation of those attributes and agrees the process necessary to ensure a candidate is selected who brings them to the Board of Directors; and
|
•
|
reviews how Board performance might be enhanced, both at an individual director level and for the Board as a whole.
|
•
|
comprehensive business briefings intended to provide each director with a deeper understanding of the Company’s activities, environment, key issues and strategy of the Company’s segments. These briefings are provided to the Board of Directors by senior executives, including CEO Office members. The briefings provided during the course of 2017 covered health and safety processes, HR, legal and compliance, corporate responsibility, marketing, steel-making, strategy, international trade trends in steel industry in Europe. Certain business briefings were combined with site visits and thus took place on-site and, in other cases, they took place at Board meetings;
|
•
|
briefing meetings with Company executives in charge of specific business segments or markets;
|
•
|
site visits to plants and R&D centers; and
|
•
|
development sessions on specific topics of relevance, such as health and safety, commodity markets, HR, investor relations, accounting, the world economy, changes in corporate governance standards, directors’ duties and shareholder feedback.
|
•
|
the Audit & Risk Committee, and
|
•
|
the ARCG Committee.
|
•
|
The primary function of the Audit & Risk Committee is to assist the Board in fulfilling its oversight responsibilities by reviewing;
|
•
|
the integrity of the financial reports and other financial information provided by the Company to any governmental body or the public;
|
•
|
the Company’s compliance with legal and regulatory requirements;
|
•
|
the registered public accounting firm’s (Independent Auditor) qualifications and independence;
|
•
|
the Company’s system of internal control regarding finance, accounting, legal compliance, ethics and risk management that management and the Board have established;
|
•
|
the Company’s auditing, accounting and financial reporting processes generally; and
|
•
|
the identification and management of risks to which the ArcelorMittal group is exposed.
|
•
|
determine, on its behalf and on behalf of the shareholders within agreed terms of reference, ArcelorMittal’s compensation framework, including short and long term incentives for the CEO, the CFO and for six other Executive Officers;
|
•
|
review and approve succession and contingency plans for key managerial positions at the level of the Executive Officers
|
•
|
consider any candidate for appointment or reappointment to the Board of Directors at the request of the Board of Directors and provide advice and recommendations to it regarding the same;
|
•
|
evaluate the functioning of the Board of Directors and monitor the Board of Directors’ self-evaluation process;
|
•
|
assess the roles of the Chairman and CEO and deliberate on the merits of the Board’s leadership structure to ensure that the most efficient and appropriate structure is in place; and
|
•
|
develop, monitor and review corporate governance principles and corporate responsibility policies applicable to ArcelorMittal, as well as their application in practice.
|
Segment
|
2017
|
2016
|
2015
|
NAFTA
|
26,324
|
27,233
|
28,861
|
Brazil
|
18,058
|
18,380
|
19,816
|
Europe
|
78,643
|
80,975
|
83,825
|
ACIS
|
42,451
|
41,989
|
45,291
|
Mining
|
30,088
|
28,455
|
30,047
|
Other activities
|
1,544
|
1,485
|
1,564
|
Total
|
197,108
|
198,517
|
209,404
|
|
Options granted in 2010
|
|
Options granted in 2009
|
|
Options granted in 2008
|
|
|
Options Total
|
|
Weighted Average Exercise Price of Options
|
Ex-GMB (Including Chief Executive Officer)
|
72,034
|
|
77,333
|
|
76,667
|
|
|
226,034
|
|
—
|
Exercise price
1
|
$91.98
|
|
$109.14
|
|
$235.32
|
|
|
—
|
|
$146.47
|
Term (in years)
|
10
|
|
10
|
|
10
|
|
|
—
|
|
—
|
Expiration date
|
Aug. 3, 2020
|
|
Aug. 4, 2019
|
|
Aug. 5, 2018
|
|
|
—
|
|
—
|
1
|
The options granted in the table above were revised following the completion of the Company's share consolidation of each three existing shares into one share without nominal value on May 22, 2017.
|
|
Options granted in 2010
|
|
Options granted in 2009
|
|
Options granted in 2008
|
|
|
Options Total
|
|
Weighted Average Exercise Price of Options
|
Executive Officers
2
|
29,250
|
|
29,667
|
|
26,862
|
|
|
85,779
|
|
—
|
Exercise price
1
|
$91.98
|
|
$109.14
|
|
$235.32-$63.42
|
|
|
—
|
|
$141.07
|
Term (in years)
|
10
|
|
10
|
|
10
|
|
|
—
|
|
—
|
Expiration date
|
Aug. 3, 2020
|
|
Aug. 4, 2019
|
|
Aug. 5, 2018- Nov. 10, 2018
|
|
|
—
|
|
—
|
1
|
The options granted in the table above were revised following the completion of the Company's share consolidation of each three existing shares into one share without nominal value on May 22, 2017.
|
2
|
Any Executive Officer who has been a GMB member is included in the Ex-GMB members.
|
|
PSUs granted in 2017
|
|
PSUs granted in 2016
|
|
PSUs granted in 2015
|
Ex-GMB (Including Chief Executive Officer)
|
90,084
|
|
306,536
|
|
154,767
|
Term (in years)
|
3
|
|
3+2
|
|
3
|
Vesting date
1
|
January1, 2021
|
|
January 1, 2020 - January 1, 2022
|
|
June 30, 2018
|
1
|
See “Item 6.B—Directors, senior management and employees—Compensation–Remuneration framework—Long-term incentives: Equity-based incentives (Share Unit Plans)”, for vesting conditions.
|
|
PSUs granted in 2017
|
|
PSUs granted in 2016
|
|
PSUs granted in 2015
|
Executive Officers
2
|
53,849
|
|
445,560
|
|
16,002
|
Term (in years)
|
3
|
|
3+2
|
|
3
|
Vesting date
1
|
January 1, 2021
|
|
January 1, 2019 -January 1, 2021
|
|
January 1, 2019
|
1
|
See note 7.3 to the consolidated financial statements, for vesting conditions.
|
2
|
Any Executive Officer who has been a GMB member is included in the Ex-GMB members.
|
|
RSUs granted in 2015
|
|
Executive Officers
|
16,002
|
|
Term (in years)
|
3
|
|
Vesting date
1
|
December 18, 2018
|
|
1
|
See “Item 6.B—Directors, senior management and employees—Compensation –Remuneration framework—Long-term incentives: Equity-based incentives (Share Unit Plans)”, for vesting conditions.
|
2
|
Any Executive Officer who has been a GMB member is included in the Ex-GMB members.
|
ITEM 7.
|
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
|
|
ArcelorMittal
Ordinary Shares 1 |
||||
|
Number
|
|
%
|
||
Significant Shareholder
2
|
382,241,301
|
|
|
37.41
|
%
|
Treasury Shares
3
|
1,986,836
|
|
|
0.19
|
%
|
Other Public Shareholders
4
|
637,675,486
|
|
|
62.4
|
%
|
Total
|
1,021,903,623
|
|
|
100.00
|
%
|
Of which: Directors and Senior Management
5
|
444,639
|
|
|
0.04
|
%
|
1
|
For purposes of this table, a person or group of persons is deemed to have beneficial ownership of any ArcelorMittal ordinary shares as of a given date on which such person or group of persons has the right to acquire such shares within 60 days after December 31, 2017 upon exercise of vested portions of stock options. All stock options that have been granted to date by ArcelorMittal have vested.
|
2
|
For purposes of this table, ordinary shares owned directly by Mr. Lakshmi Mittal and his wife, Mrs. Usha Mittal, and options held directly by Mr. Lakshmi Mittal, are aggregated with those ordinary shares beneficially owned by the Significant Shareholder. At December 31, 2017, Mr. Lakshmi Mittal and his wife, Mrs. Usha Mittal, had direct ownership of ArcelorMittal ordinary shares and indirect beneficial ownership (within the meaning set forth in Rule 13d-3 of the Exchange Act), through the Significant Shareholder, of two holding companies that own ArcelorMittal ordinary shares—Nuavam Investments S.à r.l. (“Nuavam”) and Lumen Investments S.à r.l. (“Lumen”). Nuavam, a limited liability company organized under the laws of Luxembourg, was the owner of 63,658,348 ArcelorMittal ordinary shares. Lumen, a limited liability company organized under the laws of Luxembourg, was the owner of 318,288,328 ArcelorMittal ordinary shares. Mr. Mittal was the direct owner of 210,292 ArcelorMittal ordinary shares and held options to acquire an additional 58,833 ArcelorMittal ordinary shares, all of which are, for the purposes of this table, deemed to be beneficially owned by Mr. Mittal due to the fact that these options are exercisable within 60 days. Mrs. Mittal was the direct owner of 25,500 ArcelorMittal ordinary shares. Mr. Mittal, Mrs. Mittal and the Significant Shareholder shared indirect beneficial ownership of 100% of each of Nuavam and Lumen (within the meaning set forth in Rule 13d-3 of the Exchange Act). Accordingly, Mr. Mittal was the beneficial owner of 382,215,801 ArcelorMittal ordinary shares, Mrs. Mittal was the beneficial owner of 381,972,176 ordinary shares and the Significant Shareholder (when aggregated with ordinary shares of ArcelorMittal and options to acquire ordinary shares of ArcelorMittal held directly by Mr. and Mrs. Mittal) was the beneficial owner of 382,241,301 ordinary shares. Excluding options, Mr. Lakshmi Mittal and Mrs. Usha Mittal together beneficially owned 382,182,468 ArcelorMittal ordinary shares at such date. As of December 31, 2016 and 2015, the Significant Shareholder (together with Mr. Mittal and Mrs. Mittal) held 37.40% and 39.39% of the Company’s ordinary shares respectively.
|
3
|
Represents ArcelorMittal ordinary shares repurchased pursuant to share repurchase programs in prior years, fractional shares returned in various transactions, and the use of treasury shares in various transactions in prior years; includes (1) 252,980 stock options that can be exercised by senior management (other than Mr. Mittal) and (2) 58,833 stock options that can be exercised by Mr. Mittal, in each case within 60 days of December 31, 2017, i.e. 0.03% of the total amount of outstanding shares. If exercised, the shares underlying these options will either have to be delivered out of Treasury shares or by the issuance of additional shares.
|
4
|
The Capital Group Companies Inc.’s shareholding increased to 168,541,781 shares, corresponding to an interest of 5.49% on April 11, 2016 and subsequently decreased to 147,321,072 on January 25, 2017, corresponding to an interest of 4.8%.As a result of reverse stock split in May 2017, the Capital Group Companies Inc. was the owner of 49,107,024 ArcelorMittal shares on December 31, 2017.
|
5
|
Includes shares beneficially owned by directors and members of senior management
listed in Item 6.E of this annual report;
excludes shares beneficially owned by Mr. Mittal. Note that (i) stock options included in this item that are exercisable within 60 days are excluded from “Treasury Shares” above (see also note 3 above) and (ii) ordinary shares included in this item are included in “Other Public Shareholders” above.
|
a.
|
ArcelorMittal Registry Shares, which are registered directly on ArcelorMittal’s Luxembourg shareholder register,
|
b.
|
shares traded on Euronext Amsterdam, Euronext Paris, the regulated market of the Luxembourg Stock Exchange and the Spanish Stock Exchanges, which are held in Euroclear, or
|
c.
|
shares traded on the NYSE, named New York Registry Shares, which are registered (including in the name of the nominee of DTC) in a register kept by or on behalf of ArcelorMittal by its New York transfer agent.
|
ITEM 8.
|
FINANCIAL INFORMATION
|
•
|
a global amount is allocated to the Board of Directors by way of directors’ fees (“tantièmes”). This amount may not be less than €1,000,000. In the event that the profits are insufficient, the amount of €1,000,000 shall be imputed in whole or in part to charges. The distribution of this amount among the members of the Board of Directors shall be effected in accordance with the Board of Directors’ rules of procedure; and
|
•
|
the balance is distributed as dividends to the shareholders or placed in the reserves or carried forward.
|
ITEM 9.
|
THE OFFER AND LISTING
|
|
The New York Stock Exchange
|
|
NYSE Euronext Amsterdam
|
|
NYSE Euronext Paris
|
|||
|
ArcelorMittal Shares
|
|
ArcelorMittal Shares
|
|
ArcelorMittal Shares
|
|||
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
|
(in U.S. dollars)
|
|
(in euros)
|
|
(in euros)
|
|||
Month ended
|
|
|
|
|
|
|
|
|
Aug-17
|
27.48
|
25.13
|
|
23.41
|
21.00
|
|
23.41
|
21.00
|
Sep-17
|
27.61
|
24.74
|
|
23.08
|
20.98
|
|
23.08
|
20.98
|
Oct-17
|
30.50
|
25.91
|
|
25.91
|
21.87
|
|
25.91
|
21.87
|
Nov-17
|
30.72
|
27.17
|
|
26.03
|
22.66
|
|
26.03
|
22.66
|
Dec-17
|
33.01
|
30.21
|
|
27.73
|
24.79
|
|
27.73
|
24.79
|
Jan-18
|
37.50
|
33.11
|
|
30.76
|
26.85
|
|
30.76
|
26.85
|
Feb-18*
|
36.39
|
33.96
|
|
30.17
|
27.68
|
|
30.17
|
27.68
|
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
First Quarter
|
28.11
|
22.11
|
|
26.52
|
20.84
|
|
26.52
|
20.84
|
Second Quarter
|
25.55
|
19.59
|
|
24.09
|
17.72
|
|
24.09
|
17.72
|
Third Quarter
|
27.61
|
22.58
|
|
23.41
|
19.86
|
|
23.41
|
19.86
|
Fourth Quarter
|
33.01
|
25.91
|
|
27.73
|
21.87
|
|
27.73
|
21.87
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2016
|
|
|
|
|
|
|
|
|
First Quarter
|
13.92
|
6.70
|
|
12.32
|
6.03
|
|
12.32
|
6.03
|
Second Quarter
|
18.42
|
12.54
|
|
16.31
|
11.38
|
|
16.31
|
11.38
|
Third Quarter
|
19.77
|
13.53
|
|
17.85
|
12.10
|
|
17.85
|
12.10
|
Fourth Quarter
|
26.51
|
17.85
|
|
24.78
|
16.14
|
|
24.78
|
16.14
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2015
|
27.31
|
8.48
|
|
24.73
|
7.80
|
|
24.73
|
7.80
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2014
|
40.78
|
24.11
|
|
31.17
|
19.46
|
|
31.17
|
19.46
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2013
|
41.12
|
24.75
|
|
32.00
|
19.43
|
|
32.00
|
19.43
|
*
|
February 2018 data is through February 2, 2018.
|
|
Luxembourg Stock Exchange
|
|
Spanish Stock Exchanges
|
||
|
ArcelorMittal Shares
|
|
ArcelorMittal Shares
|
||
|
High
|
Low
|
|
High
|
Low
|
|
(in euros)
|
|
(in euros)
|
||
Month ended
|
|
|
|
|
|
Aug-17
|
23.29
|
21.06
|
|
23.40
|
21.01
|
Sep-17
|
23.26
|
20.40
|
|
23.08
|
21.01
|
Oct-17
|
25.88
|
21.90
|
|
25.90
|
21.81
|
Nov-17
|
26.00
|
23.08
|
|
26.02
|
22.91
|
Dec-17
|
27.64
|
25.02
|
|
27.73
|
24.84
|
Jan-18
|
30.06
|
27.80
|
|
30.77
|
26.87
|
Feb-18*
|
30.88
|
26.89
|
|
30.15
|
27.67
|
Year ended December 31, 2017
|
|
|
|
|
|
First Quarter
|
27.06
|
20.87
|
|
26.51
|
20.83
|
Second Quarter
|
24.06
|
17.50
|
|
24.07
|
17.72
|
Third Quarter
|
23.29
|
19.90
|
|
23.40
|
19.86
|
Fourth Quarter
|
27.64
|
21.90
|
|
27.73
|
21.81
|
|
|
|
|
|
|
Year ended December 31, 2016
|
|
|
|
|
|
First Quarter
|
12.46
|
6.09
|
|
12.36
|
6.03
|
Second Quarter
|
16.61
|
10.98
|
|
16.31
|
11.40
|
Third Quarter
|
18.00
|
12.20
|
|
17.81
|
12.12
|
Fourth Quarter
|
24.65
|
16.26
|
|
24.76
|
16.13
|
|
|
|
|
|
|
Year ended December 31, 2015
|
24.53
|
7.87
|
|
24.72
|
7.82
|
|
|
|
|
|
|
Year ended December 31, 2014
|
30.98
|
19.61
|
|
31.17
|
19.45
|
|
|
|
|
|
|
Year ended December 31, 2013
|
32.29
|
19.46
|
|
32.00
|
19.43
|
|
*
|
February 2018 data is through February 2, 2018.
|
ITEM 10.
|
ADDITIONAL INFORMATION
|
•
|
to reduce the share capital of the Company without distribution to shareholders, in order to reduce the par value of the shares in the Company to an amount of 10 euro cents per share and
|
•
|
to increase the Company’s authorized share capital including the authorization to limit or cancel the shareholders’ preferential subscription rights.
|
a.
|
ArcelorMittal Registry Shares, which are registered directly on ArcelorMittal’s Luxembourg shareholder register,
|
b.
|
shares traded on Euronext Amsterdam, Euronext Paris, the regulated market of the Luxembourg Stock Exchange and the Spanish Stock Exchanges, which are held in Euroclear, or
|
c.
|
shares traded on the NYSE, named New York Registry Shares, which are registered in a register (including in the name of the nominee of DTC) kept by or on behalf of ArcelorMittal by its New York transfer agent.
|
•
|
to reduce the share capital of the Company without distribution to shareholders, in order to reduce the par value of the shares in the Company to an amount of 10 euro cents per share and
|
•
|
to increase the Company’s authorized share capital including the authorization to limit or cancel the shareholders’ preferential subscription rights.
|
•
|
a prior authorization of the general meeting of shareholders setting out the terms and conditions of the proposed repurchase, including the maximum number of shares to be repurchased, the duration of the period for which the authorization is given (which may not exceed five years) and the minimum and maximum consideration per share;
|
•
|
the repurchase may not reduce the net assets of ArcelorMittal on a non-consolidated basis to a level below the aggregate of the issued share capital and the reserves that ArcelorMittal must maintain pursuant to Luxembourg law or its Articles of Association;
|
•
|
only fully paid-up shares may be repurchased. At December 31, 2017, all of ArcelorMittal’s issued ordinary shares were fully paid-up; and
|
•
|
the acquisition offer is made on the same terms and conditions to all the shareholders who are in the same position, it being noted however that listed companies may repurchase their own shares on the stock exchange without an acquisition offer having to be made to the shareholders.
|
•
|
an increase or decrease of the authorized or issued share capital,
|
•
|
a limitation or exclusion of existing shareholders’ preemptive rights,
|
•
|
the acquisition by any person of 25% or more of the issued share capital of ArcelorMittal,
|
•
|
approving a merger or similar transaction such as a spin-off, and
|
•
|
any transaction or matter requiring an amendment of the Articles of Association.
|
•
|
any acquisition or disposal of shares resulting in the threshold of 2.5% of voting rights in ArcelorMittal being crossed upwards or downwards,
|
•
|
any acquisition or disposal of shares resulting in the threshold of 3.0% of voting rights in ArcelorMittal being crossed upwards or downwards, and
|
•
|
with respect to any shareholder holding at least 3.0% of the voting rights in ArcelorMittal, to any acquisition or disposal of shares resulting in successive thresholds of 1.0% of voting rights being crossed upwards or downwards.
|
•
|
voting rights held by a third party with whom that person or entity has concluded an agreement and which obliges them to adopt, by concerted exercise of the voting rights they hold, a lasting common policy towards ArcelorMittal;
|
•
|
voting rights held by a third party under an agreement concluded with that person or entity providing for the temporary transfer for consideration of the voting rights in question;
|
•
|
voting rights attaching to shares pledged as collateral with that person or entity, provided the person or entity controls the voting rights and declares its intention to exercise them;
|
•
|
voting rights attaching to shares in which a person or entity holds a life interest;
|
•
|
voting rights which are held or may be exercised within the meaning of the four foregoing points by an undertaking controlled by that person or entity;
|
•
|
voting rights attaching to shares deposited with that person or entity which the person or entity may exercise at its discretion in the absence of specific instructions from the shareholders;
|
•
|
voting rights held by a third party in its own name on behalf of that person or entity; and
|
•
|
voting rights which that person or entity may exercise as a proxy where the person or entity may exercise the voting rights in its sole discretion.
|
•
|
an individual citizen or resident of the United States;
|
•
|
a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized in or under the laws of the United States, any state thereof, or the District of Columbia; or
|
•
|
any other person that is subject to U.S. federal income tax on a net income basis in respect of the ArcelorMittal shares.
|
•
|
the Luxembourg Holder is a legal entity subject to net wealth tax in Luxembourg; or
|
•
|
ArcelorMittal shares are attributable to an enterprise or part thereof which is carried on through a permanent establishment or a permanent representative in Luxembourg of a non-resident entity.
|
ITEM 11.
|
QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
|
Currency
|
|
Impact on net debt translation of a 10% appreciation of the
U.S. dollar against the euro |
|
Impact on net debt translation of a 10% depreciation of the
U.S. dollar against the euro |
In 2017
|
|
in $ equivalent
(in millions) |
|
in $ equivalent
(in millions) |
Argentine peso
|
|
(6)
|
|
5
|
Bosnia and Herzegovina convertible mark
|
|
2
|
|
(3)
|
Chinese renminbi
|
|
(8)
|
|
9
|
Euro
|
|
(597)
|
|
597
|
Moroccan dirham
|
|
3
|
|
(4)
|
Swiss franc
|
|
(6)
|
|
7
|
Other
|
|
2
|
|
(1)
|
Currency
|
|
Impact on net debt translation of a 10% appreciation of the
U.S. dollar against the euro |
|
Impact on net debt translation of a 10% depreciation of the
U.S. dollar against the euro |
In 2016
|
|
in $ equivalent
(in millions) |
|
in $ equivalent
(in millions) |
Chinese renminbi
|
|
2
|
|
(2)
|
Euro
|
|
(392)
|
|
392
|
Moroccan dirham
|
|
4
|
|
(4)
|
South African rand
|
|
(1)
|
|
1
|
Swiss franc
|
|
(14)
|
|
16
|
Ukrainian hryvnia
|
|
1
|
|
(1)
|
Other
|
|
8
|
|
(5)
|
ITEM 12.
|
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
|
ITEM 13.
|
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
|
ITEM 14.
|
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
|
ITEM 15.
|
CONTROLS AND PROCEDURES
|
•
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of ArcelorMittal;
|
•
|
provide reasonable assurance that transactions are recorded, as necessary, to permit preparation of financial statements in accordance with IFRS;
|
•
|
provide reasonable assurance that receipts and expenditures of ArcelorMittal are made in accordance with authorizations of ArcelorMittal's management and directors; and
|
•
|
provide reasonable assurance that unauthorized acquisition, use or disposition of ArcelorMittal’s assets that could have a material effect on the financial statements would be prevented or detected on a timely basis.
|
/s/ Deloitte Audit S.à r.l.
|
Luxembourg, Grand Duchy of Luxembourg
|
February 15, 2018
|
ITEM 16A.
|
AUDIT & RISK COMMITTEE FINANCIAL EXPERT
|
ITEM 16B.
|
CODE OF ETHICS
|
ITEM 16C.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 16D.
|
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
|
ITEM 16E.
|
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
|
ITEM 16F.
|
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
|
ITEM 16G.
|
CORPORATE GOVERNANCE
|
ITEM 16H.
|
MINE SAFETY DISCLOSURE
|
ITEM 17.
|
FINANCIAL STATEMENTS
|
ITEM 18.
|
FINANCIAL STATEMENTS
|
ITEM 19.
|
EXHIBITS
|
Exhibit
|
Description
|
Number
|
|
|
|
1.1.*
|
Amended and Restated Articles of Association of ArcelorMittal dated May 22, 2017 (filed as Exhibit 4.5 to the Form 6-K dated May 22, 2017 (File No. 001-35788) and incorporated by reference herein) and available at:
http://www.sec.gov/Archives/edgar/data/1243429/000090342317000368/arcelor62kex45_0522.htm
.
|
2.1.
|
The total amount of long-term debt securities authorized under any instrument does not exceed 10% of the total assets of ArcelorMittal and its subsidiaries on a consolidated basis. ArcelorMittal hereby agrees to furnish to the SEC, upon its request, a copy of any instrument defining the rights of holders of long-term debt of ArcelorMittal or of its subsidiaries for which consolidated or unconsolidated financial statements are required to be filed.
|
4.1.*
|
Shareholder’s agreement dated as of August 13, 1997 among Ispat International N.V., LNM Holdings S.L. (renamed Ispat International Investments S.L.) and Mr. Lakshmi N. Mittal (filed as Exhibit 4.3 to Mittal Steel Company N.V.’s annual report on Form 20-F for the year ended December 31, 2004 (File No. 001-14666), and incorporated by reference herein) and available at:
http://www.sec.gov/Archives/edgar/data/1041989/000095012305003893/y07225exv4w3.txt
.
|
4.2.*
|
Memorandum of Understanding dated June 25, 2006 among Arcelor, Mittal Steel Company N.V. and Mr. and Mrs. Lakshmi N. Mittal (filed as Exhibit 99.1 to Mittal Steel Company N.V.’s report on Form 6-K (File No. 001-14666) filed with the Commission on June 29, 2006, and incorporated by reference herein) and available at:
http://www.sec.gov/Archives/edgar/data/1041989/000090342306000774/mittal6k-ex991_0629.htm.
|
4.4*.
|
Supplemental Terms for 2015-2016 to the ArcelorMittal Equity Incentive Plan effective May 5, 2015 (filed as Exhibit 4.4 to the annual report on Form 20-F filed on February 22, 2016 (File No. 001-35788) and incorporated by reference herein) and available at:
http://www.sec.gov/Archives/edgar/data/1243429/000124342916000008/exhibit44.htm
.
|
4.5.*
|
Restricted Share Units and Performance Share Units Plan effective May 10, 2011 (filed as Exhibit 4.5 to ArcelorMittal’s annual report on Form 20-F filed on February 22, 2012 (File No. 333-146371), and incorporated by reference herein) and available at:
http://www.sec.gov/Archives/edgar/data/1243429/000124342912000008/Exhibit4.5.htm
.
|
4.6.*
|
Supplemental Terms for 2013-2014 Restricted Share Units and Performance Share Units Plan to the ArcelorMittal Equity Incentive Plan effective May 8, 2013 (filed as Exhibit 4.6 to the annual report on Form 20-F filed on February 25, 2014 (File No. 001-35788) and incorporated by reference herein) and available at:
http://www.sec.gov/Archives/edgar/data/1243429/000124342914000002/exhibit46.htm
.
|
4.7.*
|
ArcelorMittal Group Management Board Performance Share Unit Plan effective May 8, 2013 (filed as Exhibit 4.7 to the annual report on Form 20-F filed on February 25, 2014 (File No. 001-35788) and incorporated by reference herein) and available at:
http://www.sec.gov/Archives/edgar/data/1243429/000124342914000002/exhibit47.htm
.
|
4.8.*
|
Supplemental Terms for 2014-2015 Restricted Share Units and Performance Share Units Plan to the ArcelorMittal Equity Incentive Plan effective May 8, 2014 (filed as Exhibit 4.8 to ArcelorMittal’s annual report on Form 20-F for the year ended December 31, 2014 (File No. 001-35788), and incorporated by reference herein) and available at:
http://www.sec.gov/Archives/edgar/data/1243429/000124342915000002/Exhibit48.htm
.
|
4.9*
|
Supplemental Terms for 2015-2016 to the GMB PSU Plan effective May 5, 2015 (filed as Exhibit 4.9 to the annual report on Form 20-F filed on February 22, 2016 (File No. 001-35788) and incorporated by reference herein) and available at:
http://www.sec.gov/Archives/edgar/data/1243429/000124342916000008/exhibit49.htm
.
|
4.10*
|
Supplemental Terms for 2016-2017 to the GMB PSU Plan effective May 4, 2016 (filed as Exhibit 5.0 to the annual report on Form 20-F filed on February 23, 2017 (File No. 001-35788) and incorporated by reference herein) and available at:
http://www.sec.gov/Archives/edgar/data/1243429/000124342917000002/ex50.htm
.
|
4.11*
|
Supplemental Terms for 2016-2017 to the ArcelorMittal Equity Incentive Plan effective May 4, 2016 (filed as Exhibit 5.1 to the annual report on Form 20-F filed on February 23, 2017 (File No. 001-35788) and incorporated by reference herein) and available at:
http://www.sec.gov/Archives/edgar/data/1243429/000124342917000002/ex51.htm
.
|
4.12
|
Supplemental Terms for 2017-2018 to the GMB PSU Plan effective May 10, 2017 available at
Exhibit 4.12
.
|
4.13
|
Supplemental Terms for 2017-2018 to the ArcelorMittal Equity Incentive Plan effective May 10, 2017 available at
Exhibit 4.13
.
|
8.1.
|
List of Significant Subsidiaries available at
Exhibit 8.1
|
12.1.
|
Certifications of ArcelorMittal’s Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) under the Exchange Act and available at
Exhibit 12.1
.
|
13.1.
|
Certifications of ArcelorMittal’s Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) under the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code and available at
Exhibit 13.1
.
|
15.1.
|
Consent of Deloitte Audit available and at
Exhibit 15.1
.
|
15.2
|
Consent of SRK Consulting (UK) Limited – iron ore and available at
Exhibit 15.2
.
|
15.3
|
Consent of SRK Consulting (UK) Limited - coal and available at
Exhibit 15.3
.
|
15.4
|
Consent of Roscoe Postle Associates Inc. and available at:
Exhibit 15.4
|
15.5
|
Consent of Gustavson Associates and available at
Exhibit 15.5
.
|
16.1.
|
Mine Safety and Health Administration Safety Data available at
Exhibit 16.1
.
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
*
|
Previously filed
|
ARCELORMITTAL
|
|
/s/ Henk Scheffer
|
Henk Scheffer
|
Company Secretary
|
|
|
Page
|
|
|
Report of Independent Registered Public Accounting Firm
|
|
|
|
Consolidated Statements of Operations
|
|
|
|
Consolidated Statements of Other Comprehensive Income
|
|
|
|
Consolidated Statements of Financial Position
|
|
|
|
Consolidated Statements of Changes in Equity
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
|
Notes to Consolidated Financial Statements
|
|
|
|
Year Ended December 31,
|
|||||||
|
Notes
|
|
2017
|
|
2016
|
|
2015
|
|||
Sales
|
4.1 and 11.1
|
|
68,679
|
|
|
56,791
|
|
|
63,578
|
|
(including 7,503, 5,634, and 6,124 of sales to related parties for 2017, 2016 and 2015, respectively)
|
|
|
|
|
|
|
|
|||
Cost of sales
|
4.2 and 11.2
|
|
60,876
|
|
|
50,428
|
|
|
65,196
|
|
(including 1,033, 1,390 and 1,460 of purchases from related parties for 2017, 2016 and 2015, respectively)
|
|
|
|
|
|
|
|
|||
Gross margin
|
|
|
7,803
|
|
|
6,363
|
|
|
(1,618
|
)
|
Selling, general and administrative expenses
|
|
|
2,369
|
|
|
2,202
|
|
|
2,543
|
|
Operating income (loss)
|
|
|
5,434
|
|
|
4,161
|
|
|
(4,161
|
)
|
Income (loss) from investments in associates, joint ventures and other investments
|
2.6
|
|
448
|
|
|
615
|
|
|
(502
|
)
|
Financing costs - net
|
6.2
|
|
(875
|
)
|
|
(2,056
|
)
|
|
(2,858
|
)
|
Income (loss) before taxes
|
|
|
5,007
|
|
|
2,720
|
|
|
(7,521
|
)
|
Income tax expense
|
9.1
|
|
432
|
|
|
986
|
|
|
902
|
|
Net income (loss) (including non-controlling interests)
|
|
|
4,575
|
|
|
1,734
|
|
|
(8,423
|
)
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
Net income (loss) attributable to equity holders of the parent
|
|
|
4,568
|
|
|
1,779
|
|
|
(7,946
|
)
|
Net income (loss) attributable to non-controlling interests
|
|
|
7
|
|
|
(45
|
)
|
|
(477
|
)
|
Net income (loss) (including non-controlling interests)
|
|
|
4,575
|
|
|
1,734
|
|
|
(8,423
|
)
|
|
|
|
Year Ended December 31,
|
|||||||
|
|
|
2017
|
|
2016
|
|
2015
|
|||
Earnings (loss) per common share (in U.S. dollars)
1
|
|
|
|
|
|
|
|
|||
Basic
|
|
|
4.48
|
|
|
1.87
|
|
|
(10.29
|
)
|
Diluted
|
|
|
4.46
|
|
|
1.86
|
|
|
(10.29
|
)
|
Weighted average common shares outstanding (in millions)
|
10.3
|
|
|
|
|
|
|
|||
Basic
|
|
|
1,020
|
|
|
953
|
|
|
772
|
|
Diluted
|
|
|
1,024
|
|
|
955
|
|
|
772
|
|
1
|
Following the completion of the Company’s share consolidation of each three existing shares into one share without nominal value on May 22, 2017, the earnings (loss) per common share and corresponding basic and diluted weighted average common shares outstanding for prior periods has been recast in accordance with IFRS. Please refer to note 10 for more information.
|
|
Year Ended December 31,
|
||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Net income (loss) (including non-controlling interests)
|
|
|
4,575
|
|
|
|
|
1,734
|
|
|
|
|
(8,423
|
)
|
|||
Items that can be recycled to the consolidated statements of operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available-for-sale investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gain (loss) arising during the period
|
497
|
|
|
|
|
333
|
|
|
|
|
(439
|
)
|
|
|
|||
Reclassification adjustments for (gain) loss included in the consolidated statements of operations
|
—
|
|
|
|
|
(74
|
)
|
|
|
|
70
|
|
|
|
|||
|
497
|
|
|
|
|
259
|
|
|
|
|
(369
|
)
|
|
|
|||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gain (loss) arising during the period
|
(340
|
)
|
|
|
|
40
|
|
|
|
|
107
|
|
|
|
|||
Reclassification adjustments for (gain) loss included in the consolidated statements of operations
|
28
|
|
|
|
|
(14
|
)
|
|
|
|
(93
|
)
|
|
|
|||
|
(312
|
)
|
|
|
|
26
|
|
|
|
|
14
|
|
|
|
|||
Exchange differences arising on translation of foreign operations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gain (loss) arising during the period
|
2,025
|
|
|
|
|
(398
|
)
|
|
|
|
(7,876
|
)
|
|
|
|||
Reclassification adjustments for (gain) loss included in the consolidated statements of operations
|
(21
|
)
|
|
|
|
(13
|
)
|
|
|
|
(11
|
)
|
|
|
|||
|
2,004
|
|
|
|
|
(411
|
)
|
|
|
|
(7,887
|
)
|
|
|
|||
Share of other comprehensive income (loss) related to associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gain (loss) arising during the period
|
341
|
|
|
|
|
(79
|
)
|
|
|
|
(666
|
)
|
|
|
|||
Reclassification adjustments for (gain) loss included in the consolidated statements of operations
|
217
|
|
|
|
|
86
|
|
|
|
|
4
|
|
|
|
|||
|
558
|
|
|
|
|
7
|
|
|
|
|
(662
|
)
|
|
|
|||
Income tax benefit (expense) related to components of other comprehensive income (loss) that can be recycled to the consolidated statements of operations
|
167
|
|
|
|
|
(26
|
)
|
|
|
|
79
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Items that cannot be recycled to the consolidated statements of operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Employee benefits - Recognized actuarial gains (losses)
|
1,098
|
|
|
|
|
9
|
|
|
|
|
24
|
|
|
|
|||
Share of other comprehensive income (loss) related to associates and joint ventures
|
29
|
|
|
|
|
(24
|
)
|
|
|
|
(36
|
)
|
|
|
|||
Income tax benefit (expense) related to components of other comprehensive income that cannot be recycled to the consolidated statements of operations
|
42
|
|
|
|
|
1
|
|
|
|
|
(47
|
)
|
|
|
|||
Total other comprehensive income (loss)
|
4,083
|
|
|
|
|
(159
|
)
|
|
|
|
(8,884
|
)
|
|
|
|||
Total other comprehensive income gain (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity holders of the parent
|
4,037
|
|
|
|
|
(186
|
)
|
|
|
|
(8,554
|
)
|
|
|
|||
Non-controlling interests
|
46
|
|
|
|
|
27
|
|
|
|
|
(330
|
)
|
|
|
|||
|
|
|
4,083
|
|
|
|
|
(159
|
)
|
|
|
|
(8,884
|
)
|
|||
Total comprehensive income (loss)
|
|
|
8,658
|
|
|
|
|
1,575
|
|
|
|
|
(17,307
|
)
|
|||
Total comprehensive income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity holders of the parent
|
|
|
8,605
|
|
|
|
|
1,593
|
|
|
|
|
(16,500
|
)
|
|||
Non-controlling interests
|
|
|
53
|
|
|
|
|
(18
|
)
|
|
|
|
(807
|
)
|
|||
Total comprehensive income (loss)
|
|
|
8,658
|
|
|
|
|
1,575
|
|
|
|
|
(17,307
|
)
|
|
|
|
December 31,
|
||||
|
Notes
|
|
2017
|
|
2016
|
||
ASSETS
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
6.1.3
|
|
2,574
|
|
|
2,501
|
|
Restricted cash
|
6.1.3
|
|
212
|
|
|
114
|
|
Trade accounts receivable and other (including 406 and 322 from related parties at December 31, 2017 and 2016, respectively)
|
4.3 and 11.1
|
|
3,863
|
|
|
2,974
|
|
Inventories
|
4.4
|
|
17,986
|
|
|
14,734
|
|
Prepaid expenses and other current assets
|
4.5
|
|
1,931
|
|
|
1,665
|
|
Assets held for sale
|
2.3
|
|
179
|
|
|
259
|
|
Total current assets
|
|
|
26,745
|
|
|
22,247
|
|
Non-current assets:
|
|
|
|
|
|
||
Goodwill and intangible assets
|
5.1
|
|
5,737
|
|
|
5,651
|
|
Property, plant and equipment and biological assets
|
5.2
|
|
36,971
|
|
|
34,831
|
|
Investments in associates and joint ventures
|
2.4
|
|
5,084
|
|
|
4,297
|
|
Other investments
|
2.5
|
|
1,471
|
|
|
926
|
|
Deferred tax assets
|
9.4
|
|
7,055
|
|
|
5,837
|
|
Other assets
|
4.6
|
|
2,234
|
|
|
1,353
|
|
Total non-current assets
|
|
|
58,552
|
|
|
52,895
|
|
Total assets
|
|
|
85,297
|
|
|
75,142
|
|
|
|
|
|
|
|
||
LIABILITIES AND EQUITY
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Short-term debt and current portion of long-term debt
|
6.1.2.1
|
|
2,785
|
|
|
1,885
|
|
Trade accounts payable and other (including 260 and 179 to related parties at December 31, 2017 and 2016, respectively)
|
4.7 and 11.2
|
|
13,428
|
|
|
11,633
|
|
Short-term provisions
|
8.1
|
|
410
|
|
|
426
|
|
Accrued expenses and other liabilities
|
4.8
|
|
4,505
|
|
|
3,943
|
|
Income tax liabilities
|
|
|
232
|
|
|
133
|
|
Liabilities held for sale
|
2.3
|
|
50
|
|
|
95
|
|
Total current liabilities
|
|
|
21,410
|
|
|
18,115
|
|
Non-current liabilities:
|
|
|
|
|
|
||
Long-term debt, net of current portion
|
6.1.2.2
|
|
10,143
|
|
|
11,789
|
|
Deferred tax liabilities
|
9.4
|
|
2,684
|
|
|
2,529
|
|
Deferred employee benefits
|
7.2
|
|
7,630
|
|
|
8,297
|
|
Long-term provisions
|
8.1
|
|
1,612
|
|
|
1,521
|
|
Other long-term obligations
|
|
|
963
|
|
|
566
|
|
Total non-current liabilities
|
|
|
23,032
|
|
|
24,702
|
|
Total liabilities
|
|
|
44,442
|
|
|
42,817
|
|
|
|
|
|
|
|
||
Contingencies and commitments
|
8.2 and 8.3
|
|
|
|
|
||
|
|
|
|
|
|
||
Equity:
|
10
|
|
|
|
|
||
Common shares (no par value, 1,151,576,921 and 1,124,093,985 shares authorized, 1,021,903,623 and 1,021,903,623 shares issued, and 1,019,916,787 and 1,019,496,143 shares outstanding at December 31, 2017 and 2016, respectively)
|
|
|
401
|
|
|
401
|
|
Treasury shares (1,986,836 and 2,407,480 common shares at December 31, 2017 and 2016, respectively, at cost)
|
|
|
(362
|
)
|
|
(371
|
)
|
Additional paid-in capital
|
|
|
34,848
|
|
|
34,826
|
|
Retained earnings
|
|
|
20,635
|
|
|
16,049
|
|
Reserves
|
|
|
(16,733
|
)
|
|
(20,770
|
)
|
Equity attributable to the equity holders of the parent
|
|
|
38,789
|
|
|
30,135
|
|
Non-controlling interests
|
|
|
2,066
|
|
|
2,190
|
|
Total equity
|
|
|
40,855
|
|
|
32,325
|
|
Total liabilities and equity
|
|
|
85,297
|
|
|
75,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserves
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that can be recycled to the Consolidated Statements of Operations
|
|
Items that cannot be recycled to the Consolidated Statements of Operations
|
|
|
|
|
|
|
|||||||||||||||||
|
Shares
1
|
|
Share capital
|
|
Treasury Shares
|
|
Mandatorily convertible notes
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Foreign
Currency Translation Adjustments |
|
Unrealized Gains (Losses) on Derivative Financial Instruments
|
|
Unrealized Gains (Losses) on Available-for-Sale Securities
|
|
Recognized actuarial (losses) gains
|
|
Equity attributable to the equity holders of the parent
|
|
Non-controlling interests
|
|
Total
Equity |
|||||||||||||
Balance at December 31, 2014
|
552
|
|
|
10,011
|
|
|
(399
|
)
|
|
1,838
|
|
|
20,258
|
|
|
22,182
|
|
|
(7,627
|
)
|
|
89
|
|
|
405
|
|
|
(4,671
|
)
|
|
42,086
|
|
|
3,074
|
|
|
45,160
|
|
Net loss (including non-controlling interests)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,946
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,946
|
)
|
|
(477
|
)
|
|
(8,423
|
)
|
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,166
|
)
|
|
25
|
|
|
(354
|
)
|
|
(59
|
)
|
|
(8,554
|
)
|
|
(330
|
)
|
|
(8,884
|
)
|
Total comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,946
|
)
|
|
(8,166
|
)
|
|
25
|
|
|
(354
|
)
|
|
(59
|
)
|
|
(16,500
|
)
|
|
(807
|
)
|
|
(17,307
|
)
|
Other changes in non-controlling interests (note 10.5)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148
|
|
|
148
|
|
Recognition of share based payments (note 7.3)
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
Voluntary conversion of mandatorily convertible notes (note 10.2)
|
1
|
|
|
—
|
|
|
18
|
|
|
(38
|
)
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Mandatory convertible bonds extension (note 10.2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
(20
|
)
|
Dividend (note 10.4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(331
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(331
|
)
|
|
(86
|
)
|
|
(417
|
)
|
Other movements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(11
|
)
|
|
(14
|
)
|
Balance at December 31, 2015
|
553
|
|
|
10,011
|
|
|
(377
|
)
|
|
1,800
|
|
|
20,294
|
|
|
13,902
|
|
|
(15,793
|
)
|
|
114
|
|
|
51
|
|
|
(4,730
|
)
|
|
25,272
|
|
|
2,298
|
|
|
27,570
|
|
Net income (including non-controlling interests)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,779
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,779
|
|
|
(45
|
)
|
|
1,734
|
|
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(471
|
)
|
|
28
|
|
|
271
|
|
|
(14
|
)
|
|
(186
|
)
|
|
27
|
|
|
(159
|
)
|
Total comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,779
|
|
|
(471
|
)
|
|
28
|
|
|
271
|
|
|
(14
|
)
|
|
1,593
|
|
|
(18
|
)
|
|
1,575
|
|
Equity offering (note 10.1)
|
421
|
|
|
144
|
|
|
—
|
|
|
—
|
|
|
2,971
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,115
|
|
|
—
|
|
|
3,115
|
|
Reduction of the share capital par value (note 10.1)
|
—
|
|
|
(10,376
|
)
|
|
—
|
|
|
—
|
|
|
10,376
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Conversion of the mandatorily convertible notes (note 10.2)
|
46
|
|
|
622
|
|
|
—
|
|
|
(1,800
|
)
|
|
1,178
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Recognition of share-based payments (note 7.3)
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
Dividend (note 10.4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
(63
|
)
|
Equity offering in ArcelorMittal South Africa ("AMSA") (note 10.5.2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
437
|
|
|
(301
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|
(80
|
)
|
|
56
|
|
Equity share option plan in AMSA (note 10.5.2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
15
|
|
|
—
|
|
AMSA B-BBEE transaction (note 10.5.2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
19
|
|
|
63
|
|
Other movements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
(23
|
)
|
|
19
|
|
|
(4
|
)
|
Balance at December 31, 2016
|
1,020
|
|
|
401
|
|
|
(371
|
)
|
|
—
|
|
|
34,826
|
|
|
16,049
|
|
|
(16,544
|
)
|
|
142
|
|
|
322
|
|
|
(4,690
|
)
|
|
30,135
|
|
|
2,190
|
|
|
32,325
|
|
Net income (including non-controlling interests)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,568
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,568
|
|
|
7
|
|
|
4,575
|
|
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,602
|
|
|
(235
|
)
|
|
501
|
|
|
1,169
|
|
|
4,037
|
|
|
46
|
|
|
4,083
|
|
Total comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,568
|
|
|
2,602
|
|
|
(235
|
)
|
|
501
|
|
|
1,169
|
|
|
8,605
|
|
|
53
|
|
|
8,658
|
|
Recognition of share-based payments (note 7.3)
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
31
|
|
Dividend (note 10.4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
(145
|
)
|
Acquisition of Sumaré (note 2.2.4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
48
|
|
Mandatory convertible bonds extension (note 10.2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(83
|
)
|
|
(83
|
)
|
Other movements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
3
|
|
|
21
|
|
Balance at December 31, 2017
|
1,020
|
|
|
401
|
|
|
(362
|
)
|
|
—
|
|
|
34,848
|
|
|
20,635
|
|
|
(13,942
|
)
|
|
(93
|
)
|
|
823
|
|
|
(3,521
|
)
|
|
38,789
|
|
|
2,066
|
|
|
40,855
|
|
|
1.
|
Amounts are in millions of shares (treasury shares are excluded). On May 22, 2017, ArcelorMittal completed the consolidation of each three existing shares in ArcelorMittal without nominal value into one share without nominal value. As a result of this reverse stock split, the number of outstanding shares decreased from 3,058 to 1,020 and all prior periods have been recast in accordance with IFRS. Please refer to note 10 for further information.
|
|
|
|
Year Ended December 31,
|
|||||||
|
Notes
|
|
2017
|
|
2016
|
|
2015
|
|||
Operating activities:
|
|
|
|
|
|
|
|
|||
Net income (loss) (including non-controlling interests)
|
|
|
4,575
|
|
|
1,734
|
|
|
(8,423
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operations:
|
|
|
|
|
|
|
|
|||
Depreciation and amortization
|
5.1 and 5.2
|
|
2,768
|
|
|
2,721
|
|
|
3,192
|
|
Impairment
|
5.2 and 5.3
|
|
206
|
|
|
205
|
|
|
4,764
|
|
Interest expense
|
6.2
|
|
879
|
|
|
1,172
|
|
|
1,383
|
|
Interest income
|
6.2
|
|
(56
|
)
|
|
(58
|
)
|
|
(105
|
)
|
Income tax expense (benefit)
|
9.1
|
|
432
|
|
|
986
|
|
|
902
|
|
Remeasurement gain relating to US deferred employee benefits
|
7.2
|
|
—
|
|
|
(832
|
)
|
|
—
|
|
Net gain on disposal of subsidiaries
|
2.3.1
|
|
(18
|
)
|
|
(23
|
)
|
|
(72
|
)
|
(Income) loss from investments in associates, joint ventures and other investments
|
2.6
|
|
(448
|
)
|
|
(615
|
)
|
|
502
|
|
Provision on pensions and OPEB
|
7.2
|
|
555
|
|
|
439
|
|
|
558
|
|
Change in fair value adjustment on call option on mandatory convertible bonds and pellet purchase agreement
|
6.1.5
|
|
(578
|
)
|
|
(138
|
)
|
|
108
|
|
Unrealized foreign exchange effects
|
|
|
(541
|
)
|
|
486
|
|
|
425
|
|
Write-downs (reversal) of inventories to net realizable value, provisions and other non-cash operating expenses net
|
4.4
|
|
781
|
|
|
(201
|
)
|
|
1,420
|
|
Changes in assets and liabilities that provided (required) cash, net of acquisitions:
|
|
|
|
|
|
|
|
|||
Trade accounts receivable
|
|
|
(620
|
)
|
|
(373
|
)
|
|
335
|
|
Inventories
|
4.4
|
|
(2,347
|
)
|
|
(2,055
|
)
|
|
288
|
|
Trade accounts payable and other
|
4.7
|
|
1,094
|
|
|
1,405
|
|
|
(1,012
|
)
|
Interest paid
|
|
|
(947
|
)
|
|
(1,354
|
)
|
|
(1,561
|
)
|
Interest received
|
|
|
57
|
|
|
60
|
|
|
89
|
|
Income taxes paid
|
|
|
(506
|
)
|
|
(296
|
)
|
|
(398
|
)
|
Dividends received from associates, joint ventures and other investments
|
|
|
232
|
|
|
176
|
|
|
227
|
|
Cash contributions to plan assets and benefits paid for pensions and OPEB
|
7.2
|
|
(496
|
)
|
|
(395
|
)
|
|
(556
|
)
|
VAT and other amounts received (paid) from/to public authorities
|
|
|
(177
|
)
|
|
46
|
|
|
166
|
|
Other working capital and provisions movements
|
|
|
(282
|
)
|
|
(382
|
)
|
|
(81
|
)
|
Net cash provided by operating activities
|
|
|
4,563
|
|
|
2,708
|
|
|
2,151
|
|
Investing activities:
|
|
|
|
|
|
|
|
|||
Purchase of property, plant and equipment and intangibles
|
|
|
(2,819
|
)
|
|
(2,444
|
)
|
|
(2,707
|
)
|
Disposals of net assets of subsidiaries, net of cash disposed of 13, nil and 10 in 2017, 2016 and 2015, respectively
|
2.3.1
|
|
6
|
|
|
185
|
|
|
—
|
|
Acquisitions of net assets of subsidiaries, net of cash acquired of 617, 63 and nil in 2017, 2016 and 2015, respectively
|
2.2.4
|
|
16
|
|
|
7
|
|
|
—
|
|
Disposals of associates and joint ventures
|
2.4.2 and 2.5
|
|
—
|
|
|
1,017
|
|
|
23
|
|
Disposals of financial assets
|
2.6
|
|
44
|
|
|
165
|
|
|
172
|
|
Other investing activities net
|
|
|
(77
|
)
|
|
(73
|
)
|
|
342
|
|
Net cash used in investing activities
|
|
|
(2,830
|
)
|
|
(1,143
|
)
|
|
(2,170
|
)
|
Financing activities:
|
|
|
|
|
|
|
|
|||
Disposal of non-controlling interests
|
10.5.2
|
|
—
|
|
|
56
|
|
|
—
|
|
Proceeds from short-term debt
|
6.1.3
|
|
1,859
|
|
|
1,516
|
|
|
543
|
|
Proceeds from long-term debt
|
6.1.3
|
|
1,407
|
|
|
110
|
|
|
3,256
|
|
Payments of short-term debt
|
6.1.3
|
|
(2,102
|
)
|
|
(2,721
|
)
|
|
(2,490
|
)
|
Payments of long-term debt
|
6.1.3
|
|
(2,691
|
)
|
|
(4,912
|
)
|
|
(501
|
)
|
Equity offering
|
10.1
|
|
—
|
|
|
3,115
|
|
|
—
|
|
Dividends paid (includes 141, 61 and 85 of dividends paid to non-controlling shareholders in 2017, 2016 and 2015, respectively)
|
|
|
(141
|
)
|
|
(61
|
)
|
|
(416
|
)
|
Other financing activities net
|
6.1.3
|
|
(63
|
)
|
|
(29
|
)
|
|
3
|
|
Net cash (used in) provided by financing activities
|
|
|
(1,731
|
)
|
|
(2,926
|
)
|
|
395
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
2
|
|
|
(1,361
|
)
|
|
376
|
|
Effect of exchange rate changes on cash
|
|
|
58
|
|
|
(127
|
)
|
|
(267
|
)
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|||
At the beginning of the year
|
|
|
2,501
|
|
|
4,002
|
|
|
3,893
|
|
Reclassification of the period-end cash and cash equivalents from (to) held for sale
|
2.3
|
|
13
|
|
|
(13
|
)
|
|
—
|
|
At the end of the year
|
|
|
2,574
|
|
|
2,501
|
|
|
4,002
|
|
Note 1: Accounting principles
|
|
1.1
|
Basis of presentation
|
1.2
|
Use of judgment and estimates
|
1.3
|
Accounting standards applied
|
Note 2: Scope of consolidation
|
|
2.1
|
Basis of consolidation
|
2.2
|
Investments in subsidiaries
|
2.3
|
Divestments and assets held for sale
|
2.4
|
Investments in associates and joint arrangements
|
2.5
|
Other investments
|
2.6
|
Income (loss) from investments in associates, joint ventures and other investments
|
Note 3: Segment reporting
|
|
3.1
|
Reportable segments
|
3.2
|
Geographical information
|
3.3
|
Sales by type of products
|
Note 4: Operating data
|
|
4.1
|
Revenue
|
4.2
|
Cost of sales
|
4.3
|
Trade accounts receivable and other
|
4.4
|
Inventories
|
4.5
|
Prepaid expenses and other current assets
|
4.6
|
Other assets
|
4.7
|
Trade accounts payable and other
|
4.8
|
Accrued expenses and other liabilities
|
Note 5: Goodwill, intangible and tangible assets
|
|
5.1
|
Goodwill and intangible assets
|
5.2
|
Property, plant and equipment and biological assets
|
5.3
|
Impairment of intangible assets, including goodwill, and tangible assets
|
Note 6: Financing and financial instruments
|
|
6.1
|
Financial assets and liabilities
|
6.2
|
Financing costs - net
|
6.3
|
Risk management policy
|
Note 7: Personnel expenses and deferred employee benefits
|
|
7.1
|
Employees and key management personnel
|
7.2
|
Deferred employee benefits
|
7.3
|
Share-based payments
|
Note 8: Provisions, contingencies and commitments
|
|
8.1
|
Provisions overview
|
8.2
|
Environmental liabilities, asset retirement obligations and legal proceedings
|
8.3
|
Commitments
|
Note 9: Income taxes
|
|
9.1
|
Income tax expense (benefit)
|
9.2
|
Income tax recorded directly in equity
|
9.3
|
Uncertain tax positions
|
9.4
|
Deferred tax assets and liabilities
|
9.5
|
Tax losses, tax credits and other tax benefits carried forward
|
Note 10: Equity
|
|
10.1
|
Share details
|
10.2
|
Equity instruments and hybrid instruments
|
10.3
|
Earnings per common share
|
10.4
|
Dividends
|
10.5
|
Non-controlling interests
|
Note 11: Related parties
|
|
11.1
|
Sales and trade receivables
|
11.2
|
Purchases and trade payables
|
11.3
|
Other transactions with related parties
|
Note 12: Subsequent event
|
•
|
Deferred tax assets (note 9): The Company assesses the recoverability of deferred tax assets based on future taxable income projections, which are inherently uncertain and may be subject to changes over time. Judgment is required to assess the impact of such changes on the measurement of these assets and the time frame for their utilization. In addition, the Company applies judgment to recognize income tax liabilities when they are probable and can be reasonably estimated depending on the interpretation, which may be uncertain, of applicable tax laws and regulations. ArcelorMittal periodically reviews its estimates to reflect changes in facts and circumstances.
|
•
|
Provisions for pensions and other post-employment benefits (note 7.2): Benefit obligations and plan assets can be subject to significant volatility, in particular due to changes in market conditions and actuarial assumptions. Such assumptions differ by plan, take local conditions into account and include discount rates, expected rates of compensation increases, health care cost trend rates, mortality and retirement rates. They are determined following a formal process involving the Company's expertise and independent actuaries. Assumptions are reviewed annually and adjusted following actuarial and experience changes.
|
•
|
Provisions (note 8): Provisions, which result from legal or constructive obligations arising as a result of past events, are recognized based on the Company's, and in certain instances, third-party's best estimate of costs when the obligation arises. They are reviewed periodically to take into consideration changes in laws and regulations and underlying facts and circumstances.
|
•
|
Impairment of tangible and intangible assets, including goodwill (note 5.3): In the framework of the determination of the recoverable amount of assets, the estimates, judgments and assumptions applied for the value in use calculations relate primarily to growth rates, expected changes to average selling prices, shipments and direct costs. Assumptions for average selling prices and shipments are based on historical experience and expectations of future changes in the market. Discount rates are reviewed annually.
|
•
|
Derivative financial instruments (note 6.1.5): Certain of the Company's derivative financial instruments are classified as Level 3 as they include unobservable inputs. In particular, the Company uses estimates to compute unobservable volatility based on movements of stock market prices for the fair valuation of the call option on the 1,000 mandatory convertible bonds.
|
•
|
Mining reserve estimates (note 5.2): Proven iron ore and coal reserves are those quantities whose recoverability can be determined with reasonable certainty from a given date forward and under existing government regulations, economic and operating conditions; probable reserves have a lower degree of assurance but high enough to assume continuity between points of observation. Their estimates and the estimates of mine lives have been prepared by ArcelorMittal experienced engineers and geologists and detailed independent verifications of the methods and procedures are conducted on a regular basis by external consultants. Reserves are updated annually and calculated using a 3-year average reference price duly adjusted for quality, ore content, logistics and other considerations. In order to estimate reserves, estimates are required for a range of geological, technical and economic factors, including quantities, grades, production techniques, recovery rates, production costs, transport costs, commodity demand, commodity prices and exchange rates. Estimating the quantity and/or grade of reserves requires the size, shape and depth of ore bodies to be determined by analyzing geological data such as drilling samples. This process may require complex and difficult geological judgments to interpret the data. Because the economic assumptions used to estimate reserves change from period to period, and because additional geological data is generated during the course of operations, estimates of reserves may change from period to period.
|
1.3
|
Accounting standards applied
|
•
|
Amendments to IAS 7 “Statement of Cash Flows” issued on January 29, 2016, which clarify that entities shall provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including non-cash changes and changes arising from cash flows. The additional disclosures are reflected in note 6.1.3.
|
•
|
Amendments to IAS 12 “Income Taxes” issued on January 19, 2016, which clarify how to account for deferred tax assets related to debt instruments measured at fair value and how to recognize deferred tax assets for unrealized losses.
|
•
|
Annual Improvements 2014 – 2016 published on December 8, 2016, which amended IFRS 12 “Disclosure of Interests in Other Entities” and clarifies the scope of the standard by specifying that the disclosure requirements in the standard apply to an entity’s interests that are classified as held for sale, as held for distribution or as discontinued operations in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”.
|
•
|
Classification and measurement: Financial assets are classified and measured by reference to the business model within which they are held and their contractual cash flow characteristics. Financial liabilities are classified in a similar manner to IAS 39, however there are differences in the requirements regarding the measurement of an entity's own credit risk.
|
•
|
Impairment: The standard introduces an 'expected credit loss' model replacing the current incurred loss model for the measurement of the impairment of financial assets; it is therefore no longer necessary for a credit event to have occurred before a credit loss is recognized.
|
•
|
Hedge accounting: The standard introduces a new hedge accounting model that is designed to more closely align with how entities undertake risk management activities when hedging financial and non-financial risk exposures, which may result in the increased application of hedge accounting.
|
•
|
Derecognition: The requirements for derecognition of financial assets and liabilities are carried forward from IAS 39.
|
•
|
IFRS 3 "Business Combinations" clarifies that when an entity obtains control of a business that is a joint operation, it remeasures previously held interests in that business.
|
•
|
IFRS 11 "Joint Arrangements" clarifies that when an entity obtains joint control of a business that is a joint operation, the entity does not remeasure previously held interests in that business.
|
•
|
IAS 12 "Income Taxes" clarifies that all income tax consequences of dividends should be recognized in profit or loss, regardless of how the tax arises.
|
•
|
IAS 23 "Borrowing Costs" clarifies that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalization rate on general borrowings.
|
Name of Subsidiary
|
|
Country
|
|
% of Ownership
|
|
NAFTA
|
|
|
|
|
|
ArcelorMittal Dofasco G.P.
|
|
Canada
|
|
100.00%
|
|
ArcelorMittal México S.A. de C.V.
|
|
Mexico
|
|
100.00%
|
|
ArcelorMittal USA LLC
|
|
United States
|
|
100.00%
|
|
ArcelorMittal Long Products Canada G.P.
|
|
Canada
|
|
100.00%
|
|
Brazil and neighboring countries ("Brazil")
|
|
|
|
|
|
ArcelorMittal Brasil S.A.
|
|
Brazil
|
|
100.00%
|
|
Acindar Industria Argentina de Aceros S.A.
|
|
Argentina
|
|
100.00%
|
|
Europe
|
|
|
|
|
|
ArcelorMittal Atlantique et Lorraine S.A.S.
|
|
France
|
|
100.00%
|
|
ArcelorMittal Belgium N.V.
|
|
Belgium
|
|
100.00%
|
|
ArcelorMittal España S.A.
|
|
Spain
|
|
99.85%
|
|
ArcelorMittal Flat Carbon Europe S.A.
|
|
Luxembourg
|
|
100.00%
|
|
ArcelorMittal Galati S.A.
|
|
Romania
|
|
99.70%
|
|
ArcelorMittal Poland S.A.
|
|
Poland
|
|
100.00%
|
|
ArcelorMittal Eisenhüttenstadt GmbH
|
|
Germany
|
|
100.00%
|
|
ArcelorMittal Bremen GmbH
|
|
Germany
|
|
100.00%
|
|
ArcelorMittal Méditerranée S.A.S.
|
|
France
|
|
100.00%
|
|
ArcelorMittal Belval & Differdange S.A.
|
|
Luxembourg
|
|
100.00%
|
|
ArcelorMittal Hamburg GmbH
|
|
Germany
|
|
100.00%
|
|
ArcelorMittal Ostrava a.s.
|
|
Czech Republic
|
|
100.00%
|
|
ArcelorMittal Duisburg GmbH
|
|
Germany
|
|
100.00%
|
|
ArcelorMittal International Luxembourg S.A.
|
|
Luxembourg
|
|
100.00%
|
1
|
Africa and Commonwealth of Independent States ("ACIS")
|
|
|
|
|
|
ArcelorMittal South Africa Ltd. ("AMSA")
|
|
South Africa
|
|
69.22%
|
2
|
JSC ArcelorMittal Temirtau
|
|
Kazakhstan
|
|
100.00%
|
|
PJSC ArcelorMittal Kryvyi Rih ("AM Kryvyi Rih")
|
|
Ukraine
|
|
95.13%
|
|
Mining
|
|
|
|
|
|
ArcelorMittal Mining Canada G.P. and ArcelorMittal Infrastructure G.P.("AMMIC")
|
|
Canada
|
|
85.00%
|
|
ArcelorMittal Liberia Ltd
|
|
Liberia
|
|
85.00%
|
|
JSC ArcelorMittal Temirtau
|
|
Kazakhstan
|
|
100.00%
|
|
PJSC ArcelorMittal Kryvyi Rih
|
|
Ukraine
|
|
95.13%
|
|
1.
|
ArcelorMittal International Luxembourg S.A. is managed by Europe reportable segment as of January 1, 2017.
|
2.
|
In 2016, AMSA issued shares in a B-BBEE (“broad-based black economic empowerment”) transaction resulting in a decrease in ArcelorMittal's voting rights to
53.92%
(see note 10.5).
|
|
Sumaré
|
|
Other current assets
|
50
|
|
Property, plant and equipment
|
69
|
|
Intangible assets
|
21
|
|
Other non-current assets
|
7
|
|
Total assets acquired
|
147
|
|
Deferred tax liabilities
|
(23
|
)
|
Other liabilities
|
(29
|
)
|
Total liabilities acquired
|
(52
|
)
|
Net assets acquired
|
95
|
|
Non-controlling interests
|
(48
|
)
|
Consideration paid, net
|
44
|
|
Consideration payable
|
5
|
|
Goodwill
|
2
|
|
|
2017
|
|
2016
|
||||||||||||||
|
AMTBA
|
|
Downstream Solutions Europe
|
|
Georgetown
|
|
ArcelorMittal Zaragoza
|
|
ArcelorMittal Tubular Products Algeria
|
|
LaPlace and Vinton
Long Carbon facilities |
||||||
Cash and cash equivalents
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other current assets
|
46
|
|
|
38
|
|
|
—
|
|
|
53
|
|
|
15
|
|
|
118
|
|
Property, plant and equipment
|
55
|
|
|
2
|
|
|
4
|
|
|
74
|
|
|
2
|
|
|
13
|
|
Other assets
|
10
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
Total assets
|
124
|
|
|
57
|
|
|
4
|
|
|
127
|
|
|
17
|
|
|
138
|
|
Current liabilities
|
52
|
|
|
18
|
|
|
1
|
|
|
38
|
|
|
16
|
|
|
33
|
|
Other long-term liabilities
|
7
|
|
|
12
|
|
|
2
|
|
|
—
|
|
|
12
|
|
|
9
|
|
Total liabilities
|
59
|
|
|
30
|
|
|
3
|
|
|
38
|
|
|
28
|
|
|
42
|
|
Total net assets/(liabilities)
|
65
|
|
|
27
|
|
|
1
|
|
|
89
|
|
|
(11
|
)
|
|
96
|
|
% of net assets sold
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Total net assets/(liabilities) disposed of
|
65
|
|
|
27
|
|
|
1
|
|
|
89
|
|
|
(11
|
)
|
|
96
|
|
Consideration
|
65
|
|
|
6
|
|
|
19
|
|
|
89
|
|
|
—
|
|
|
96
|
|
Reclassification of foreign exchange translation difference
|
—
|
|
|
21
|
|
|
—
|
|
|
8
|
|
|
4
|
|
|
—
|
|
Gain on disposal
|
—
|
|
|
—
|
|
|
18
|
|
|
8
|
|
|
15
|
|
|
—
|
|
|
December 31, 2017
|
|||||||
|
Frydek Místek
|
|
Steelton
|
|
Total
|
|||
ASSETS
|
|
|
|
|
|
|||
Current assets:
|
|
|
|
|
|
|||
Trade accounts receivable and other
|
—
|
|
|
23
|
|
|
23
|
|
Inventories
|
25
|
|
|
21
|
|
|
46
|
|
Total current assets
|
25
|
|
|
44
|
|
|
69
|
|
Non-current assets:
|
|
|
|
|
|
|||
Property, plant and equipment
|
34
|
|
|
76
|
|
|
110
|
|
Total non-current assets
|
34
|
|
|
76
|
|
|
110
|
|
Total assets
|
59
|
|
|
120
|
|
|
179
|
|
|
|
|
|
|
|
|||
LIABILITIES
|
|
|
|
|
|
|||
Current liabilities:
|
|
|
|
|
|
|||
Trade accounts payable and other
|
5
|
|
|
17
|
|
|
22
|
|
Accrued expenses and other liabilities
|
2
|
|
|
5
|
|
|
7
|
|
Total current liabilities
|
7
|
|
|
22
|
|
|
29
|
|
Non-current liabilities:
|
|
|
|
|
|
|||
Long-term provisions
|
4
|
|
|
17
|
|
|
21
|
|
Total non-current liabilities
|
4
|
|
|
17
|
|
|
21
|
|
Total liabilities
|
11
|
|
|
39
|
|
|
50
|
|
|
December 31, 2016
|
||||||||||
|
AMTBA
|
|
Downstream Solutions Europe
|
|
Steelton
|
|
Total
|
||||
ASSETS
|
|
|
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
Trade accounts receivable and other
|
24
|
|
|
15
|
|
|
18
|
|
|
57
|
|
Inventories
|
18
|
|
|
6
|
|
|
15
|
|
|
39
|
|
Prepaid expenses and other current assets
|
4
|
|
|
1
|
|
|
—
|
|
|
5
|
|
Total current assets
|
59
|
|
|
22
|
|
|
33
|
|
|
114
|
|
Non-current assets:
|
|
|
|
|
|
|
|
||||
Property, plant and equipment
|
55
|
|
|
—
|
|
|
76
|
|
|
131
|
|
Other assets
|
12
|
|
|
2
|
|
|
—
|
|
|
14
|
|
Total non-current assets
|
67
|
|
|
2
|
|
|
76
|
|
|
145
|
|
Total assets
|
126
|
|
|
24
|
|
|
109
|
|
|
259
|
|
|
|
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
|
|
||||
Short-term debt and current portion of long-term debt
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Trade accounts payable and other
|
30
|
|
|
10
|
|
|
9
|
|
|
49
|
|
Accrued expenses and other liabilities
|
4
|
|
|
6
|
|
|
2
|
|
|
12
|
|
Total current liabilities
|
36
|
|
|
16
|
|
|
11
|
|
|
63
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
||||
Long-term debt net of current portion
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
Long-term provisions
|
—
|
|
|
5
|
|
|
20
|
|
|
25
|
|
Total non-current liabilities
|
7
|
|
|
5
|
|
|
20
|
|
|
32
|
|
Total liabilities
|
43
|
|
|
21
|
|
|
31
|
|
|
95
|
|
|
December 31,
|
||
Category
|
2017
|
|
2016
|
Joint ventures
|
1,249
|
|
1,507
|
Associates
|
2,854
|
|
2,000
|
Individually immaterial joint ventures and associates
1
|
981
|
|
790
|
Total
|
5,084
|
|
4,297
|
1.
|
Individually immaterial joint ventures and associates represent in aggregate less than 20% of the total carrying amount of investments in joint ventures and associates at
December 31, 2017
and
2016
, and none of them have a carrying value exceeding 100 at
December 31, 2017
and
2016
.
|
|
|
December 31, 2017
|
||||||||||||||||
Joint Ventures
|
|
Calvert
|
|
Macsteel
|
|
VAMA
|
|
Tameh
|
|
Borçelik
|
|
Total
|
||||||
Place of incorporation and operation
1
|
|
United States
|
|
Netherlands
|
|
China
|
|
Poland
|
|
Turkey
|
|
|
||||||
Principal Activity
|
|
Automotive steel finishing
|
|
Steel trading and shipping
|
|
Automotive steel finishing
|
|
Energy production and supply
|
|
Manufacturing and sale of steel
2,3
|
|
|
||||||
Ownership and voting rights at December 31, 2017
|
|
50.00%
|
|
50.00%
|
|
49.00%
|
|
50.00%
|
|
45.33%
|
|
|
||||||
Current assets
|
|
1,135
|
|
|
739
|
|
|
283
|
|
|
158
|
|
|
519
|
|
|
2,834
|
|
of which cash and cash equivalents
|
|
13
|
|
|
95
|
|
|
71
|
|
|
57
|
|
|
7
|
|
|
243
|
|
Non-current assets
|
|
1,303
|
|
|
389
|
|
|
754
|
|
|
476
|
|
|
296
|
|
|
3,218
|
|
Current liabilities
|
|
612
|
|
|
404
|
|
|
449
|
|
|
132
|
|
|
357
|
|
|
1,954
|
|
of which trade and other payables and provisions
|
|
118
|
|
|
235
|
|
|
190
|
|
|
118
|
|
|
244
|
|
|
905
|
|
Non-current liabilities
|
|
947
|
|
|
43
|
|
|
277
|
|
|
189
|
|
|
46
|
|
|
1,502
|
|
of which trade and other payables and provisions
|
|
—
|
|
|
3
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
23
|
|
Net assets
|
|
879
|
|
|
681
|
|
|
311
|
|
|
313
|
|
|
412
|
|
|
2,596
|
|
Company's share of net assets
|
|
440
|
|
|
341
|
|
|
152
|
|
|
156
|
|
|
187
|
|
|
1,276
|
|
Adjustments for differences in accounting policies and other
|
|
6
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
|
(27
|
)
|
Carrying amount in the statements of financial position
|
|
446
|
|
|
338
|
|
|
152
|
|
|
156
|
|
|
157
|
|
|
1,249
|
|
Revenue
|
|
2,870
|
|
|
2,775
|
|
|
489
|
|
|
330
|
|
|
1,234
|
|
|
7,698
|
|
Depreciation and amortization
|
|
(62
|
)
|
|
(1
|
)
|
|
(30
|
)
|
|
(27
|
)
|
|
(22
|
)
|
|
(142
|
)
|
Interest income
|
|
—
|
|
|
14
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
16
|
|
Interest expense
|
|
(35
|
)
|
|
(10
|
)
|
|
(28
|
)
|
|
4
|
|
|
(12
|
)
|
|
(81
|
)
|
Income tax benefit (expense)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(7
|
)
|
|
(20
|
)
|
|
(32
|
)
|
Net income (loss)
|
|
270
|
|
|
31
|
|
|
5
|
|
|
42
|
|
|
65
|
|
|
413
|
|
Other comprehensive income (loss)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
Total comprehensive income (loss)
|
|
270
|
|
|
33
|
|
|
5
|
|
|
41
|
|
|
64
|
|
|
413
|
|
Cash dividends received by the Company
|
|
20
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
30
|
|
|
54
|
|
1.
|
The country of incorporation corresponds to the country of operation except for Tameh whose country of operation is also the Czech Republic and Macsteel whose countries of operation are mainly the United States, the United Arab Emirates and China.
|
2.
|
The non-current liabilities include
40
deferred tax liability.
|
3.
|
Adjustment in Borçelik relates primarily to differences in accounting policies regarding revaluation of fixed assets.
|
|
|
December 31, 2016
|
|||||||||||||||||||
Joint Ventures
|
|
Calvert
|
|
Macsteel
|
|
Baffinland
|
|
VAMA
|
|
Tameh
|
|
Borçelik
|
|
Total
|
|||||||
Place of incorporation and operation
1
|
|
United States
|
|
Netherlands
|
|
Canada
|
|
China
|
|
Poland
|
|
Turkey
|
|
|
|||||||
Principal Activity
|
|
Automotive steel finishing
|
|
Steel trading and shipping
|
|
Extraction of iron ore
3
|
|
Automotive steel finishing
|
|
Energy production and supply
|
|
Manufacturing and sale of steel
2, 4
|
|
|
|||||||
Ownership and voting rights at December 31, 2016
|
|
50.00%
|
|
50.00%
|
|
44.54%
|
|
49.00%
|
|
50.00%
|
|
45.33%
|
|
|
|||||||
Current assets
|
|
836
|
|
|
636
|
|
|
197
|
|
|
230
|
|
|
120
|
|
|
404
|
|
|
2,423
|
|
of which cash and cash equivalents
|
|
45
|
|
|
77
|
|
|
7
|
|
|
75
|
|
|
47
|
|
|
39
|
|
|
290
|
|
Non-current assets
|
|
1,287
|
|
|
374
|
|
|
1,506
|
|
|
721
|
|
|
354
|
|
|
325
|
|
|
4,567
|
|
Current liabilities
|
|
490
|
|
|
312
|
|
|
354
|
|
|
362
|
|
|
83
|
|
|
254
|
|
|
1,855
|
|
of which trade and other payables and provisions
|
|
160
|
|
|
170
|
|
|
190
|
|
|
248
|
|
|
83
|
|
|
112
|
|
|
963
|
|
Non-current liabilities
|
|
984
|
|
|
41
|
|
|
262
|
|
|
302
|
|
|
159
|
|
|
45
|
|
|
1,793
|
|
of which trade and other payables and provisions
|
|
—
|
|
|
3
|
|
|
37
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
59
|
|
Net assets
|
|
649
|
|
|
657
|
|
|
1,087
|
|
|
287
|
|
|
232
|
|
|
430
|
|
|
3,342
|
|
Company's share of net assets
|
|
325
|
|
|
328
|
|
|
484
|
|
|
141
|
|
|
116
|
|
|
195
|
|
|
1,589
|
|
Adjustments for differences in accounting policies and other
|
|
6
|
|
|
—
|
|
|
(59
|
)
|
|
—
|
|
|
2
|
|
|
(31
|
)
|
|
(82
|
)
|
Carrying amount in the statements of financial position
|
|
331
|
|
|
328
|
|
|
425
|
|
|
141
|
|
|
118
|
|
|
164
|
|
|
1,507
|
|
Revenue
|
|
2,358
|
|
|
2,353
|
|
|
116
|
|
|
335
|
|
|
254
|
|
|
845
|
|
|
6,261
|
|
Depreciation and amortization
|
|
(59
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
(30
|
)
|
|
(20
|
)
|
|
(20
|
)
|
|
(133
|
)
|
Interest income
|
|
—
|
|
|
12
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
14
|
|
Interest expense
|
|
(31
|
)
|
|
(9
|
)
|
|
(20
|
)
|
|
(28
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|
(96
|
)
|
Income tax benefit (expense)
|
|
—
|
|
|
(4
|
)
|
|
(26
|
)
|
|
18
|
|
|
(10
|
)
|
|
(28
|
)
|
|
(50
|
)
|
Net income (loss)
|
|
148
|
|
|
15
|
|
|
(43
|
)
|
|
(58
|
)
|
|
29
|
|
|
75
|
|
|
166
|
|
Other comprehensive income (loss)
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
13
|
|
Total comprehensive income (loss)
|
|
148
|
|
|
25
|
|
|
(43
|
)
|
|
(58
|
)
|
|
32
|
|
|
75
|
|
|
179
|
|
Cash dividends received by the Company
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
16
|
|
|
41
|
|
1.
|
The country of incorporation corresponds to the country of operation except for Tameh whose country of operation is also the Czech Republic and Macsteel whose countries of operation are mainly the United States, the United Arab Emirates and China.
|
2.
|
The non-current liabilities include
39
deferred tax liability.
|
3.
|
Adjustment in Baffinland relates primarily to differences in accounting policies regarding revaluation of fixed assets, preferred shares and locally recognized goodwill.
|
4.
|
Adjustment in Borçelik relates primarily to differences in accounting policies regarding revaluation of fixed assets.
|
|
|
December 31, 2015
|
||||||||||||||||
Joint Ventures
|
|
Calvert
|
|
Macsteel
|
|
Baffinland
|
|
VAMA
|
|
Tameh
|
|
Borçelik
|
|
Total
|
||||
Place of incorporation and operation
1
|
|
United States
|
|
Netherlands
|
|
Canada
|
|
China
|
|
Poland
|
|
Turkey
|
|
|
||||
Principal Activity
|
|
Automotive steel finishing
|
|
Steel trading and shipping
|
|
Development of iron ore mine
|
|
Automotive steel finishing
|
|
Energy production and supply
|
|
Manufacturing and sale of steel
|
|
|
||||
Ownership and voting rights at December 31, 2015
|
|
50.00%
|
|
50.00%
|
|
46.08%
|
|
49.00%
|
|
50.00%
|
|
45.33%
|
|
|
||||
Revenue
|
|
2,094
|
|
|
2,722
|
|
—
|
|
|
152
|
|
|
308
|
|
|
838
|
|
6,114
|
Depreciation and amortization
|
|
(58)
|
|
|
(1)
|
|
—
|
|
|
(26)
|
|
|
(33)
|
|
|
(20)
|
|
(138)
|
Interest income
|
|
—
|
|
|
13
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
15
|
Interest expense
|
|
(31)
|
|
|
(10)
|
|
—
|
|
|
(16)
|
|
|
(1)
|
|
|
(7)
|
|
(65)
|
Income tax benefit (expense)
|
|
—
|
|
|
(5)
|
|
(2)
|
|
|
34
|
|
|
(4)
|
|
|
(17)
|
|
6
|
Net income (loss)
|
|
(23)
|
|
|
32
|
|
(66)
|
|
|
(88)
|
|
|
14
|
|
|
32
|
|
(99)
|
Other comprehensive income (loss)
|
|
—
|
|
|
8
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
7
|
Total comprehensive income (loss)
|
|
(23)
|
|
|
40
|
|
(66)
|
|
|
(88)
|
|
|
14
|
|
|
31
|
|
(92)
|
Cash dividends received by the Company
|
|
22
|
|
|
10
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
41
|
1.
|
The country of incorporation corresponds to the country of operation except for Tameh whose country of operation is also the Czech Republic and Macsteel whose countries of operation are mainly the United States, the United Arab Emirates and China.
|
|
|
December 31, 2017
|
|||||||||||||
Associates
|
|
China Oriental
|
|
DHS Group
|
|
Gonvarri Steel Industries
|
|
Baffinland
|
|
Total
|
|||||
Financial statements reporting date
|
|
June 30, 2017
|
|
September 30, 2017
|
|
September 30, 2017
|
|
December 31, 2017
|
|
|
|||||
Place of incorporation and operation
1
|
|
Bermuda
|
|
Germany
|
|
Spain
|
|
Canada
|
|
|
|||||
Principal Activity
|
|
Iron and steel manufacturing
|
|
Steel manufacturing
3
|
|
Steel manufacturing
4
|
|
Extraction of iron ore
5
|
|
|
|||||
Ownership and voting rights at December 31, 2017
|
|
39.02%
|
|
33.43%
|
|
35.00%
|
|
31.07%
|
|
|
|||||
Current assets
|
|
1,737
|
|
|
1,699
|
|
|
1,967
|
|
|
355
|
|
|
5,758
|
|
Non-current assets
|
|
1,336
|
|
|
3,096
|
|
|
1,372
|
|
|
1,698
|
|
|
7,502
|
|
Current liabilities
|
|
1,261
|
|
|
555
|
|
|
889
|
|
|
302
|
|
|
3,007
|
|
Non-current liabilities
|
|
119
|
|
|
1,121
|
|
|
446
|
|
|
531
|
|
|
2,217
|
|
Non-controlling interests
|
|
23
|
|
|
136
|
|
|
220
|
|
|
—
|
|
|
379
|
|
Net assets attributable to equity holders of the parent
|
|
1,670
|
|
|
2,983
|
|
|
1,784
|
|
|
1,220
|
|
|
7,657
|
|
Company's share of net assets
|
|
652
|
|
|
997
|
|
|
624
|
|
|
379
|
|
|
2,652
|
|
Adjustments for differences in accounting policies and other
|
|
—
|
|
|
32
|
|
|
(54
|
)
|
|
23
|
|
|
1
|
|
Other adjustments
2
|
|
183
|
|
|
22
|
|
|
(4
|
)
|
|
—
|
|
|
201
|
|
Carrying amount in the statements of financial position
|
|
835
|
|
|
1,051
|
|
|
566
|
|
|
402
|
|
|
2,854
|
|
Revenue
|
|
2,944
|
|
|
1,773
|
|
|
2,862
|
|
|
341
|
|
|
7,920
|
|
Profit or loss from continuing operations
|
|
368
|
|
|
5
|
|
|
122
|
|
|
24
|
|
|
519
|
|
Net income (loss)
|
|
275
|
|
|
(4
|
)
|
|
122
|
|
|
(20
|
)
|
|
373
|
|
Other comprehensive income (loss)
|
|
(1
|
)
|
|
(5
|
)
|
|
(9
|
)
|
|
—
|
|
|
(15
|
)
|
Total comprehensive income (loss)
|
|
274
|
|
|
(9
|
)
|
|
113
|
|
|
(20
|
)
|
|
358
|
|
Cash dividends received by the Company
|
|
49
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
67
|
|
1.
|
The country of incorporation corresponds to the country of operation except for China Oriental whose country of operation is China.
|
2.
|
Other adjustments correspond to the difference between the carrying amount at
December 31, 2017
and the net assets situation corresponding to the latest financial statements ArcelorMittal is permitted to disclose.
|
3.
|
The amount for DHS Group includes an adjustment to align the German GAAP financial information with the Company’s accounting policies and is mainly linked to property, plant and equipment, inventory and pension.
|
4.
|
Adjustments in Gonvarri Steel Industries primarily relate to differences in accounting policies regarding revaluation of fixed assets.
|
5.
|
Adjustments in Baffinland primarily relate to differences in accounting policies regarding revaluation of fixed assets and locally recognized goodwill.
|
|
|
December 31, 2016
|
||||||||||
Associates
|
|
China Oriental
|
|
DHS Group
|
|
Gonvarri Steel Industries
|
|
Total
|
||||
Financial statements reporting date
|
|
June 30, 2016
|
|
September 30, 2016
|
|
September 30, 2016
|
|
|
||||
Place of incorporation and operation
1
|
|
Bermuda
|
|
Germany
|
|
Spain
|
|
|
||||
Principal Activity
|
|
Iron and steel manufacturing
|
|
Steel manufacturing
3
|
|
Steel manufacturing
4
|
|
|
||||
Ownership and voting rights at December 31, 2016
|
|
46.99%
|
|
33.43%
|
|
35.00%
|
|
|
||||
Current assets
|
|
1,422
|
|
|
1,624
|
|
|
1,481
|
|
|
4,527
|
|
Non-current assets
|
|
1,504
|
|
|
2,999
|
|
|
1,178
|
|
|
5,681
|
|
Current liabilities
|
|
1,275
|
|
|
609
|
|
|
608
|
|
|
2,492
|
|
Non-current liabilities
|
|
240
|
|
|
1,052
|
|
|
299
|
|
|
1,591
|
|
Non-controlling interests
|
|
47
|
|
|
132
|
|
|
218
|
|
|
397
|
|
Net assets attributable to equity holders of the parent
|
|
1,364
|
|
|
2,830
|
|
|
1,534
|
|
|
5,728
|
|
Company's share of net assets
|
|
641
|
|
|
946
|
|
|
537
|
|
|
2,124
|
|
Adjustments for differences in accounting policies and other
|
|
—
|
|
|
17
|
|
|
(51
|
)
|
|
(34
|
)
|
Other adjustments
2
|
|
(18
|
)
|
|
(61
|
)
|
|
(11
|
)
|
|
(90
|
)
|
Carrying amount in the statements of financial position
|
|
623
|
|
|
902
|
|
|
475
|
|
|
2,000
|
|
Revenue
|
|
1,751
|
|
|
1,396
|
|
|
2,258
|
|
|
5,405
|
|
Profit or loss from continuing operations
|
|
123
|
|
|
(91
|
)
|
|
145
|
|
|
177
|
|
Net income (loss)
|
|
83
|
|
|
(96
|
)
|
|
145
|
|
|
132
|
|
Other comprehensive income (loss)
|
|
—
|
|
|
(3
|
)
|
|
4
|
|
|
1
|
|
Total comprehensive income (loss)
|
|
83
|
|
|
(99
|
)
|
|
149
|
|
|
133
|
|
Cash dividends received by the Company
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
1.
|
The country of incorporation corresponds to the country of operation except for China Oriental whose country of operation is China.
|
2.
|
Other adjustments correspond to the difference between the carrying amount at
December 31, 2016
and the net assets situation corresponding to the latest financial statements ArcelorMittal is permitted to disclose.
|
3.
|
The amount for DHS Group includes an adjustment to align the German GAAP financial information with the Company’s accounting policies, and is mainly linked to property, plant and equipment, inventory and pension.
|
4.
|
Adjustments in Gonvarri Steel Industries primarily relate to differences in accounting policies regarding revaluation of fixed assets.
|
|
|
December 31, 2015
|
||||||||||||||||
Associates
|
|
China Oriental
|
|
DHS Group
|
|
Gestamp
2
|
|
Gonvarri Steel Industries
|
|
Stalprodukt S.A.
2
|
|
Total
|
||||||
Financial statements reporting date
|
|
June 30, 2015
|
|
September 30, 2015
|
|
September 30, 2015
|
|
September 30, 2015
|
|
September 30, 2015
|
|
|
||||||
Place of incorporation and operation
1
|
|
Bermuda
|
|
Germany
|
|
Spain
|
|
Spain
|
|
Poland
|
|
|
||||||
Principal Activity
|
|
Iron and steel manufacturing
|
|
Steel manufacturing
|
|
Manufacturing of metal components
|
|
Steel manufacturing
|
|
Production and distribution of steel products
|
|
|
||||||
Ownership and voting rights at December 31, 2015 *
|
|
46.99%
|
|
33.43%
|
|
35.00%
|
|
35.00%
|
|
28.47%
|
|
|
||||||
Revenue
|
|
1,768
|
|
|
1,603
|
|
|
5,642
|
|
|
2,194
|
|
|
628
|
|
|
11,835
|
|
Profit or loss from continuing operations
|
|
6
|
|
|
(47
|
)
|
|
169
|
|
|
102
|
|
|
61
|
|
|
291
|
|
Net income (loss)
|
|
10
|
|
|
(45
|
)
|
|
109
|
|
|
102
|
|
|
47
|
|
|
223
|
|
Other comprehensive income (loss)
|
|
(1
|
)
|
|
—
|
|
|
(35
|
)
|
|
(53
|
)
|
|
—
|
|
|
(89
|
)
|
Total comprehensive income (loss)
|
|
9
|
|
|
(45
|
)
|
|
74
|
|
|
49
|
|
|
47
|
|
|
134
|
|
Cash dividends received by the Company
|
|
—
|
|
|
4
|
|
|
15
|
|
|
14
|
|
|
—
|
|
|
33
|
|
1.
|
The country of incorporation corresponds to the country of operation except for China Oriental whose country of operation is China.
|
2.
|
Date of the latest available financial statements is September 30, 2015.
|
*
|
The ownership stake is equal to the voting rights percentage, except for Stalprodukt S.A. whose voting rights correspond to
28.26%
.
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
|
|
Associates
|
|
Joint Ventures
|
|
Associates
|
|
Joint Ventures
|
Carrying amount of interests in associates and joint ventures
|
|
337
|
|
644
|
|
291
|
|
499
|
Share of:
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
16
|
|
23
|
|
56
|
|
(2)
|
Other comprehensive income (loss)
|
|
—
|
|
10
|
|
(2)
|
|
1
|
Total comprehensive income (loss)
|
|
16
|
|
33
|
|
54
|
|
(1)
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
Available-for-sale securities (at fair value)
|
1,444
|
|
|
894
|
|
Investments accounted for at cost
|
27
|
|
|
32
|
|
Total
|
1,471
|
|
|
926
|
|
|
Call option strike prices
|
||||||||||||||||||||||
Exercise dates
|
at the 60th month
|
|
at the 72nd month
|
|
at the 84th month
|
|
at the 96th month
|
|
at the 108th month
|
|
at the 120th month
|
|
at the 132nd month
|
|
at the 144th month
|
||||||||
Amounts per vessel
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
First four vessels
|
28
|
|
|
26
|
|
|
25
|
|
|
23
|
|
|
21
|
|
|
19
|
|
|
17
|
|
|
14
|
|
Fifth vessel
|
29
|
|
|
27
|
|
|
26
|
|
|
24
|
|
|
22
|
|
|
20
|
|
|
17
|
|
|
14
|
|
Sixth vessel
|
31
|
|
|
30
|
|
|
28
|
|
|
27
|
|
|
26
|
|
|
24
|
|
|
20
|
|
|
14
|
|
1.
|
If the actual fair value of each vessel is higher than the strike price at each of the exercise dates, ArcelorMittal is obliged to share
50%
of the gain with the structured entities.
|
|
Year Ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Share in net earnings of equity-accounted companies
|
537
|
|
|
207
|
|
|
(59
|
)
|
Impairment charges
|
(26
|
)
|
|
(28
|
)
|
|
(565
|
)
|
Gain (loss) on disposal
|
(117
|
)
|
|
377
|
|
|
46
|
|
Dividend income
|
54
|
|
|
59
|
|
|
76
|
|
Total
|
448
|
|
|
615
|
|
|
(502
|
)
|
•
|
NAFTA represents the flat, long and tubular facilities of the Company located in North America (Canada, United States and Mexico). NAFTA produces flat products such as slabs, hot-rolled coil, cold-rolled coil, coated steel and plate. These products are sold primarily to customers in the following sectors: automotive, energy, construction, packaging and appliances and via distributors or processors. NAFTA also produces long products such as wire rod, sections, rebar, billets, blooms and wire drawing, and tubular products;
|
•
|
Brazil includes the flat operations of Brazil and the long and tubular operations of Brazil and neighboring countries including Argentina, Costa Rica and Venezuela. Flat products include slabs, hot-rolled coil, cold-rolled coil and coated steel. Long products consist of wire rod, sections, bar and rebar, billets, blooms and wire drawing;
|
•
|
Europe is the largest flat steel producer in Europe, with operations that range from Spain in the west to Romania in the east, and covering the flat carbon steel product portfolio in all major countries and markets. Europe produces hot-rolled coil, cold-rolled coil, coated products, tinplate, plate and slab. These products are sold primarily to customers in the automotive, general and packaging sectors. Europe also produces long products consisting of sections, wire rod, rebar, billets, blooms and wire drawing, and tubular products. In addition, it includes Downstream Solutions, primarily an in-house trading and distribution arm of ArcelorMittal. Downstream Solutions also provides value-added and customized steel solutions through further steel processing to meet specific customer requirements;
|
•
|
ACIS produces a combination of flat, long and tubular products. Its facilities are located in Africa and the Commonwealth of Independent States; and
|
•
|
Mining comprises all mines owned by ArcelorMittal in the Americas (Canada, United States, Mexico and Brazil), Asia (Kazakhstan), Europe (Ukraine and Bosnia & Herzegovina) and Africa (Liberia). It provides the Company's steel operations with high quality and low-cost iron ore and coal reserves and also sells limited amounts of mineral products to third parties.
|
|
NAFTA
|
|
Brazil
|
|
Europe
|
|
ACIS
|
|
Mining
|
|
Others
1
|
|
Elimination
|
|
Total
|
||||||||
Year ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales to external customers
|
17,225
|
|
|
7,954
|
|
|
31,586
|
|
|
5,932
|
|
|
824
|
|
|
57
|
|
|
—
|
|
|
63,578
|
|
Intersegment sales
2
|
68
|
|
|
549
|
|
|
307
|
|
|
196
|
|
|
2,563
|
|
|
311
|
|
|
(3,994
|
)
|
|
—
|
|
Operating income (loss)
|
(705
|
)
|
|
628
|
|
|
171
|
|
|
(624
|
)
|
|
(3,522
|
)
|
|
(140
|
)
|
|
31
|
|
|
(4,161
|
)
|
Depreciation and amortization
|
616
|
|
|
336
|
|
|
1,192
|
|
|
408
|
|
|
614
|
|
|
26
|
|
|
—
|
|
|
3,192
|
|
Impairment
|
526
|
|
|
176
|
|
|
398
|
|
|
294
|
|
|
3,370
|
|
|
—
|
|
|
—
|
|
|
4,764
|
|
Capital expenditures
|
392
|
|
|
422
|
|
|
1,045
|
|
|
365
|
|
|
476
|
|
|
7
|
|
|
—
|
|
|
2,707
|
|
Year ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales to external customers
|
15,769
|
|
|
5,526
|
|
|
28,999
|
|
|
5,675
|
|
|
781
|
|
|
41
|
|
|
—
|
|
|
56,791
|
|
Intersegment sales
2
|
37
|
|
|
697
|
|
|
273
|
|
|
210
|
|
|
2,333
|
|
|
260
|
|
|
(3,810
|
)
|
|
—
|
|
Operating income (loss)
|
2,002
|
|
|
614
|
|
|
1,270
|
|
|
211
|
|
|
366
|
|
|
(208
|
)
|
|
(94
|
)
|
|
4,161
|
|
Depreciation and amortization
|
549
|
|
|
258
|
|
|
1,184
|
|
|
311
|
|
|
396
|
|
|
23
|
|
|
—
|
|
|
2,721
|
|
Impairment
|
—
|
|
|
—
|
|
|
49
|
|
|
156
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
205
|
|
Capital expenditures
|
445
|
|
|
237
|
|
|
951
|
|
|
397
|
|
|
392
|
|
|
22
|
|
|
—
|
|
|
2,444
|
|
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales to external customers
|
17,893
|
|
|
6,571
|
|
|
35,825
|
|
|
7,323
|
|
|
985
|
|
|
82
|
|
|
—
|
|
|
68,679
|
|
Intersegment sales
2
|
104
|
|
|
1,184
|
|
|
383
|
|
|
298
|
|
|
3,048
|
|
|
303
|
|
|
(5,320
|
)
|
|
—
|
|
Operating income (loss)
|
1,185
|
|
|
697
|
|
|
2,359
|
|
|
508
|
|
|
991
|
|
|
(288
|
)
|
|
(18
|
)
|
|
5,434
|
|
Depreciation and amortization
|
518
|
|
|
293
|
|
|
1,201
|
|
|
313
|
|
|
416
|
|
|
27
|
|
|
—
|
|
|
2,768
|
|
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
206
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
206
|
|
Capital expenditures
|
466
|
|
|
263
|
|
|
1,143
|
|
|
427
|
|
|
495
|
|
|
25
|
|
|
—
|
|
|
2,819
|
|
1.
|
Others include all other operational and non-operational items which are not segmented, such as corporate and shared services, financial activities, and shipping and logistics.
|
2.
|
Transactions between segments are reported on the same basis of accounting as transactions with third parties except for certain mining products shipped internally and reported on a cost plus basis.
|
|
Year ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Operating income (loss)
|
5,434
|
|
|
4,161
|
|
|
(4,161
|
)
|
Income/ (loss) from investments in associates and joint ventures
|
448
|
|
|
615
|
|
|
(502
|
)
|
Financing costs - net
|
(875
|
)
|
|
(2,056
|
)
|
|
(2,858
|
)
|
Income (loss) before taxes
|
5,007
|
|
|
2,720
|
|
|
(7,521
|
)
|
Income tax expense
|
432
|
|
|
986
|
|
|
902
|
|
Net income/ (loss) (including non-controlling interests)
|
4,575
|
|
|
1,734
|
|
|
(8,423
|
)
|
|
Year ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Americas
|
|
|
|
|
|
|||
United States
|
14,367
|
|
|
12,284
|
|
|
13,619
|
|
Brazil
|
4,149
|
|
|
3,506
|
|
|
3,809
|
|
Canada
|
3,034
|
|
|
2,818
|
|
|
2,913
|
|
Mexico
|
2,251
|
|
|
1,806
|
|
|
1,913
|
|
Argentina
|
1,230
|
|
|
858
|
|
|
1,370
|
|
Venezuela
|
68
|
|
|
105
|
|
|
1,334
|
|
Others
|
937
|
|
|
830
|
|
|
951
|
|
Total Americas
|
26,036
|
|
|
22,207
|
|
|
25,909
|
|
|
|
|
|
|
|
|||
Europe
|
|
|
|
|
|
|
|
|
Germany
|
5,933
|
|
|
4,768
|
|
|
5,473
|
|
France
|
4,051
|
|
|
3,655
|
|
|
3,743
|
|
Spain
|
3,751
|
|
|
3,015
|
|
|
3,406
|
|
Poland
|
3,746
|
|
|
2,997
|
|
|
3,023
|
|
Italy
|
2,711
|
|
|
2,067
|
|
|
2,278
|
|
Turkey
|
1,937
|
|
|
1,789
|
|
|
1,962
|
|
Czech Republic
|
1,400
|
|
|
1,107
|
|
|
1,476
|
|
United Kingdom
|
1,370
|
|
|
1,159
|
|
|
1,246
|
|
Russia
|
1,204
|
|
|
688
|
|
|
638
|
|
Belgium
|
1,129
|
|
|
929
|
|
|
1,108
|
|
Netherlands
|
1,117
|
|
|
1,030
|
|
|
867
|
|
Romania
|
621
|
|
|
526
|
|
|
583
|
|
Others
|
4,948
|
|
|
3,886
|
|
|
4,024
|
|
Total Europe
|
33,918
|
|
|
27,616
|
|
|
29,827
|
|
|
|
|
|
|
|
|||
Asia & Africa
|
|
|
|
|
|
|||
South Africa
|
2,560
|
|
|
2,026
|
|
|
2,111
|
|
Egypt
|
310
|
|
|
499
|
|
|
404
|
|
Morocco
|
596
|
|
|
498
|
|
|
533
|
|
Rest of Africa
|
1,033
|
|
|
658
|
|
|
945
|
|
China
|
622
|
|
|
549
|
|
|
557
|
|
Kazakhstan
|
392
|
|
|
350
|
|
|
456
|
|
South Korea
|
259
|
|
|
184
|
|
|
242
|
|
India
|
163
|
|
|
85
|
|
|
197
|
|
Rest of Asia
|
2,790
|
|
|
2,119
|
|
|
2,397
|
|
Total Asia & Africa
|
8,725
|
|
|
6,968
|
|
|
7,842
|
|
|
|
|
|
|
|
|||
Total
|
68,679
|
|
|
56,791
|
|
|
63,578
|
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
Americas
|
|
|
|
||
Canada
|
5,368
|
|
|
5,208
|
|
Brazil
|
4,466
|
|
|
4,471
|
|
United States
|
4,029
|
|
|
4,209
|
|
Mexico
|
978
|
|
|
906
|
|
Argentina
|
137
|
|
|
152
|
|
Venezuela
|
100
|
|
|
43
|
|
Others
|
20
|
|
|
21
|
|
Total Americas
|
15,098
|
|
|
15,010
|
|
|
|
|
|
||
Europe
|
|
|
|
||
France
|
4,738
|
|
|
4,194
|
|
Belgium
|
2,827
|
|
|
2,458
|
|
Germany
|
2,737
|
|
|
2,395
|
|
Poland
|
2,421
|
|
|
2,112
|
|
Ukraine
|
2,077
|
|
|
2,110
|
|
Spain
|
2,035
|
|
|
1,797
|
|
Luxembourg
|
1,277
|
|
|
1,142
|
|
Romania
|
633
|
|
|
573
|
|
Czech Republic
|
621
|
|
|
585
|
|
Bosnia and Herzegovina
|
202
|
|
|
182
|
|
Italy
|
171
|
|
|
158
|
|
Others
|
264
|
|
|
236
|
|
Total Europe
|
20,003
|
|
|
17,942
|
|
|
|
|
|
||
Asia & Africa
|
|
|
|
||
Kazakhstan
|
1,322
|
|
|
1,223
|
|
South Africa
|
677
|
|
|
788
|
|
Morocco
|
103
|
|
|
104
|
|
Liberia
|
93
|
|
|
49
|
|
Others
|
119
|
|
|
116
|
|
Total Asia & Africa
|
2,314
|
|
|
2,280
|
|
|
|
|
|
||
Unallocated assets
|
21,137
|
|
|
17,663
|
|
Total
|
58,552
|
|
|
52,895
|
|
|
1.
|
Non-current assets do not include goodwill (as it is not allocated to the individual countries), deferred tax assets, investment in associate and joint ventures, other investments and other non-current financial assets. Such assets are presented under the caption “Unallocated assets”.
|
|
Year ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Flat products
|
43,065
|
|
|
34,215
|
|
|
36,226
|
|
Long products
|
13,685
|
|
|
12,104
|
|
|
13,996
|
|
Tubular products
|
1,810
|
|
|
1,500
|
|
|
2,809
|
|
Mining products
|
985
|
|
|
781
|
|
|
824
|
|
Others
|
9,134
|
|
|
8,191
|
|
|
9,723
|
|
Total
|
68,679
|
|
|
56,791
|
|
|
63,578
|
|
|
Year ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Materials
|
42,813
|
|
|
34,276
|
|
|
41,788
|
|
Labor costs
1
|
8,842
|
|
|
7,572
|
|
|
9,125
|
|
Logistic expenses
|
4,161
|
|
|
3,760
|
|
|
4,252
|
|
Depreciation and amortization
|
2,768
|
|
|
2,721
|
|
|
3,192
|
|
Impairment
|
206
|
|
|
205
|
|
|
4,764
|
|
Other
|
2,086
|
|
|
1,894
|
|
|
2,075
|
|
Total
|
60,876
|
|
|
50,428
|
|
|
65,196
|
|
1.
|
In 2016, labor costs include an
832
gain relating to changes in post-employment benefit plans in the US (see note 7.2).
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
Gross amount
|
4,056
|
|
|
3,158
|
|
Allowance for doubtful accounts
|
(193
|
)
|
|
(184
|
)
|
Total
|
3,863
|
|
|
2,974
|
|
|
December 31,
|
|
December 31,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||||
|
Gross
|
|
Allowance
|
|
Total
|
|
Gross
|
|
Allowance
|
|
Total
|
||||||
Not past due
|
3,134
|
|
|
(4
|
)
|
|
3,130
|
|
|
2,476
|
|
|
(6
|
)
|
|
2,470
|
|
Overdue 1-30 days
|
538
|
|
|
(9
|
)
|
|
529
|
|
|
292
|
|
|
(1
|
)
|
|
291
|
|
Overdue 31-60 days
|
106
|
|
|
(1
|
)
|
|
105
|
|
|
63
|
|
|
(1
|
)
|
|
62
|
|
Overdue 61-90 days
|
34
|
|
|
—
|
|
|
34
|
|
|
32
|
|
|
(1
|
)
|
|
31
|
|
Overdue 91-180 days
|
46
|
|
|
(13
|
)
|
|
33
|
|
|
50
|
|
|
(6
|
)
|
|
44
|
|
More than 180 days
|
198
|
|
|
(166
|
)
|
|
32
|
|
|
245
|
|
|
(169
|
)
|
|
76
|
|
Total
|
4,056
|
|
|
(193
|
)
|
|
3,863
|
|
|
3,158
|
|
|
(184
|
)
|
|
2,974
|
|
Balance as of December 31, 2014
|
|
Additions
|
|
Deductions/
Releases |
|
Foreign exchange and others
|
|
Balance as of December 31, 2015
|
175
|
|
41
|
|
(19)
|
|
(27)
|
|
170
|
Balance as of December 31, 2015
|
|
Additions
|
|
Deductions/
Releases |
|
Foreign exchange and others
|
|
Balance as of December 31, 2016
|
170
|
|
34
|
|
(25)
|
|
5
|
|
184
|
Balance as of December 31, 2016
|
|
Additions
|
|
Deductions/
Releases |
|
Foreign exchange and others
|
|
Balance as of December 31, 2017
|
184
|
|
34
|
|
(38)
|
|
13
|
|
193
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
Finished products
|
6,321
|
|
|
4,861
|
|
Production in process
|
4,049
|
|
|
3,264
|
|
Raw materials
|
5,883
|
|
|
5,141
|
|
Manufacturing supplies, spare parts and other
|
1,733
|
|
|
1,468
|
|
Total
|
17,986
|
|
|
14,734
|
|
Balance as of December 31, 2014
|
|
Additions
1
|
|
Deductions / Releases
2
|
|
Foreign exchange and others
|
|
Balance as of December 31, 2015
|
1,293
|
|
1,256
|
|
(637)
|
|
(205)
|
|
1,707
|
Balance as of December 31, 2015
|
|
Additions
1
|
|
Deductions / Releases
2
|
|
Foreign exchange and others
|
|
Balance as of December 31, 2016
|
1,707
|
|
473
|
|
(964)
|
|
(119)
|
|
1,097
|
Balance as of December 31, 2016
|
|
Additions
1
|
|
Deductions / Releases
2
|
|
Foreign exchange and others
|
|
Balance as of December 31, 2017
|
1,097
|
|
442
|
|
(404)
|
|
104
|
|
1,239
|
1.
|
Additions refer to write-downs of inventories including those utilized or written back during the same financial year.
|
2.
|
Deductions/releases correspond to write-backs and utilizations related to the current and prior periods.
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
VAT receivables
|
822
|
|
|
672
|
|
Prepaid expenses and non-trade receivables
|
321
|
|
|
369
|
|
Financial amounts receivable
|
219
|
|
|
118
|
|
Income tax receivable
|
176
|
|
|
111
|
|
Receivables from public authorities
|
147
|
|
|
67
|
|
Receivables from sale of financial and intangible assets
|
118
|
|
|
34
|
|
Derivative financial instruments
|
87
|
|
|
243
|
|
Other
1
|
41
|
|
|
51
|
|
Total
|
1,931
|
|
|
1,665
|
|
1.
|
Other includes mainly advances to employees, accrued interest and other miscellaneous receivables.
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
Derivative financial instruments (see Note 6.1.5.)
|
995
|
|
|
189
|
|
Financial amounts receivable
|
345
|
|
|
297
|
|
Long-term VAT receivables
|
198
|
|
|
196
|
|
Cash guarantees and deposits
|
190
|
|
|
187
|
|
Receivables from public authorities
|
173
|
|
|
136
|
|
Accrued interest
|
96
|
|
|
91
|
|
Receivables from sale of financial and intangible assets
|
93
|
|
|
43
|
|
Income tax receivable
|
14
|
|
|
55
|
|
Other
1
|
130
|
|
|
159
|
|
Total
|
2,234
|
|
|
1,353
|
|
1.
|
Other mainly includes assets in pension funds and other amounts receivable
.
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
Accrued payroll and employee related expenses
|
1,787
|
|
|
1,560
|
|
Accrued interest and other payables
|
794
|
|
|
781
|
|
Payable from acquisition of intangible, tangible & financial assets
|
943
|
|
|
833
|
|
Other amounts due to public authorities
|
587
|
|
|
504
|
|
Derivative financial instruments
|
325
|
|
|
226
|
|
Unearned revenue and accrued payables
|
69
|
|
|
39
|
|
Total
|
4,505
|
|
|
3,943
|
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
Goodwill on acquisitions
|
5,294
|
|
|
5,248
|
|
Concessions, patents and licenses
|
275
|
|
|
252
|
|
Customer relationships and trade marks
|
118
|
|
|
120
|
|
Other
|
50
|
|
|
31
|
|
Total
|
5,737
|
|
|
5,651
|
|
|
December 31, 2015
|
|
Foreign exchange differences and other movements
|
|
Divestments
1
|
|
December 31, 2016
|
||||
NAFTA
|
2,209
|
|
|
6
|
|
|
(13
|
)
|
|
2,202
|
|
Brazil
|
1,426
|
|
|
242
|
|
|
—
|
|
|
1,668
|
|
Europe
|
547
|
|
|
(16
|
)
|
|
(2
|
)
|
|
529
|
|
ACIS
|
961
|
|
|
(112
|
)
|
|
—
|
|
|
849
|
|
Total
|
5,143
|
|
|
120
|
|
|
(15
|
)
|
|
5,248
|
|
1.
|
See note 2.3.1
|
|
December 31, 2016
|
|
Foreign exchange differences and other movements
1
|
|
Divestments
|
|
December 31, 2017
|
||||
NAFTA
|
2,202
|
|
|
47
|
|
|
—
|
|
|
2,249
|
|
Brazil
|
1,668
|
|
|
(28
|
)
|
|
—
|
|
|
1,640
|
|
Europe
|
529
|
|
|
53
|
|
|
—
|
|
|
582
|
|
ACIS
|
849
|
|
|
(26
|
)
|
|
—
|
|
|
823
|
|
Total
|
5,248
|
|
|
46
|
|
|
—
|
|
|
5,294
|
|
1.
|
The movements for Brazil includes
2
related to Sumaré acquisition
(please refer to note 2.2.4)
|
|
Concessions, patents and licenses
|
|
Customer relationships and trade marks
|
|
Other
|
|
Total
|
||||
Cost
|
|
|
|
|
|
|
|
||||
At December 31, 2015
|
730
|
|
|
1,077
|
|
|
36
|
|
|
1,843
|
|
Acquisitions
|
5
|
|
|
—
|
|
|
30
|
|
|
35
|
|
Disposals
|
(2
|
)
|
|
—
|
|
|
(5
|
)
|
|
(7
|
)
|
Foreign exchange differences
|
(1
|
)
|
|
22
|
|
|
(1
|
)
|
|
20
|
|
Transfers and other movements
1
|
15
|
|
|
3
|
|
|
(4
|
)
|
|
14
|
|
Fully amortized intangible assets
2
|
(71
|
)
|
|
(2
|
)
|
|
—
|
|
|
(73
|
)
|
At December 31, 2016
|
676
|
|
|
1,100
|
|
|
56
|
|
|
1,832
|
|
Acquisitions
|
6
|
|
|
21
|
|
|
34
|
|
|
61
|
|
Disposals
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
Foreign exchange differences
|
83
|
|
|
97
|
|
|
9
|
|
|
189
|
|
Transfers and other movements
1
|
20
|
|
|
(1
|
)
|
|
(3
|
)
|
|
16
|
|
Fully amortized intangible assets
2
|
(18
|
)
|
|
(3
|
)
|
|
—
|
|
|
(21
|
)
|
At December 31, 2017
|
766
|
|
|
1,214
|
|
|
96
|
|
|
2,076
|
|
|
|
|
|
|
|
|
|
||||
Accumulated amortization and impairment losses
|
|
|
|
|
|
|
|
||||
At December 31, 2015
|
464
|
|
|
907
|
|
|
23
|
|
|
1,394
|
|
Amortization charge
|
28
|
|
|
60
|
|
|
5
|
|
|
93
|
|
Foreign exchange differences
|
3
|
|
|
15
|
|
|
(1
|
)
|
|
17
|
|
Transfers and other movements
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
Fully amortized intangible assets
2
|
(71
|
)
|
|
(2
|
)
|
|
—
|
|
|
(73
|
)
|
At December 31, 2016
|
424
|
|
|
980
|
|
|
25
|
|
|
1,429
|
|
Amortization charge
|
31
|
|
|
31
|
|
|
16
|
|
|
78
|
|
Foreign exchange differences
|
58
|
|
|
89
|
|
|
5
|
|
|
152
|
|
Transfers and other movements
|
(4
|
)
|
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
Fully amortized intangible assets
2
|
(18
|
)
|
|
(3
|
)
|
|
—
|
|
|
(21
|
)
|
At December 31, 2017
|
491
|
|
|
1,096
|
|
|
46
|
|
|
1,633
|
|
|
|
|
|
|
|
|
|
||||
Carrying amount
|
|
|
|
|
|
|
|
||||
At December 31, 2016
|
252
|
|
|
120
|
|
|
31
|
|
|
403
|
|
At December 31, 2017
|
275
|
|
|
118
|
|
|
50
|
|
|
443
|
|
1.
|
Transfers and other movements correspond mainly to transfer from assets under construction into patents and licenses in 2017 and 2016
.
|
2.
|
Fully amortized assets correspond mainly to licenses in
2017
and
2016
.
|
Asset Category
|
|
Useful Life Range
|
Land
|
|
Not depreciated
|
Buildings
|
|
10 to 50 years
|
Property plant & equipment
|
|
15 to 50 years
|
Auxiliary facilities
|
|
15 to 45 years
|
Other facilities
|
|
5 to 20 years
|
•
|
Mineral rights acquired;
|
•
|
Capitalized developmental stripping (as described below in “Stripping and overburden removal costs”).
|
•
|
Asset carrying amounts may be affected due to changes in estimated future cash flows.
|
•
|
Depreciation, depletion and amortization charged in the consolidated statements of operations may change where such charges are determined by the units of production basis, or where the useful economic lives of assets change.
|
•
|
Overburden removal costs recognized in the consolidated statements of financial position or charged to the consolidated statements of operations may change due to changes in stripping ratios or the units of production basis of depreciation.
|
•
|
Decommissioning, site restoration and environmental provisions may change where changes in estimated reserves affect expectations about the timing or cost of these activities.
|
•
|
If mining of the second and subsequent pits is conducted consecutively with that of the first pit, rather than concurrently.
|
•
|
If separate investment decisions are made to develop each pit, rather than a single investment decision being made at the outset.
|
•
|
If the pits are operated as separate units in terms of mine planning and the sequencing of overburden and ore mining, rather than as an integrated unit.
|
•
|
If expenditures for additional infrastructure to support the second and subsequent pits are relatively large.
|
•
|
If the pits extract ore from separate and distinct ore bodies, rather than from a single ore body.
|
•
|
researching and analyzing historical exploration data;
|
•
|
conducting topographical, geological, geochemical and geophysical studies;
|
•
|
carrying out exploratory drilling, trenching and sampling activities;
|
•
|
drilling, trenching and sampling activities to determine the quantity and grade of the deposit;
|
•
|
examining and testing extraction methods and metallurgical or treatment processes; and
|
•
|
detailed economic feasibility evaluations to determine whether development of the reserves is commercially justified and to plan methods for mine development.
|
•
|
sinking shafts and underground drifts (often called mine development);
|
•
|
making permanent excavations;
|
•
|
developing passageways and rooms or galleries;
|
•
|
building roads and tunnels; and
|
•
|
advance removal of overburden and waste rock.
|
|
Land, buildings and
Improvements |
|
Machinery, equipment and other
2
|
|
Construction in progress
|
|
Mining
Assets |
|
Total
|
|||||
Cost
|
|
|
|
|
|
|
|
|
|
|||||
At December 31, 2015
|
11,732
|
|
|
43,934
|
|
|
3,510
|
|
|
3,659
|
|
|
62,835
|
|
Additions
|
16
|
|
|
299
|
|
|
2,074
|
|
|
37
|
|
|
2,426
|
|
Foreign exchange differences
|
(606
|
)
|
|
(1,122
|
)
|
|
(57
|
)
|
|
(13
|
)
|
|
(1,798
|
)
|
Disposals
|
(129
|
)
|
|
(1,386
|
)
|
|
(24
|
)
|
|
(4
|
)
|
|
(1,543
|
)
|
Divestments (note 2.3)
|
(64
|
)
|
|
(186
|
)
|
|
(4
|
)
|
|
—
|
|
|
(254
|
)
|
Transfers to assets held for sale (note 2.3)
|
(3
|
)
|
|
(97
|
)
|
|
(18
|
)
|
|
—
|
|
|
(118
|
)
|
Other movements
1
|
162
|
|
|
1,875
|
|
|
(2,224
|
)
|
|
72
|
|
|
(115
|
)
|
At December 31, 2016
|
11,108
|
|
|
43,317
|
|
|
3,257
|
|
|
3,751
|
|
|
61,433
|
|
Additions
|
90
|
|
|
357
|
|
|
2,441
|
|
|
50
|
|
|
2,938
|
|
Foreign exchange differences
|
1,629
|
|
|
5,560
|
|
|
154
|
|
|
—
|
|
|
7,343
|
|
Disposals
|
(97
|
)
|
|
(853
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|
(958
|
)
|
Divestments (note 2.3)
|
(7
|
)
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
Transfers to assets held for sale (note 2.3)
|
(21
|
)
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
(116
|
)
|
Other movements
1
|
143
|
|
|
1,928
|
|
|
(2,113
|
)
|
|
75
|
|
|
33
|
|
At December 31, 2017
|
12,845
|
|
|
50,174
|
|
|
3,732
|
|
|
3,875
|
|
|
70,626
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accumulated depreciation and impairment
|
|
|
|
|
|
|
|
|
|
|||||
At December 31, 2015
|
3,344
|
|
|
20,220
|
|
|
1,060
|
|
|
2,431
|
|
|
27,055
|
|
Depreciation charge for the year
|
339
|
|
|
2,178
|
|
|
—
|
|
|
111
|
|
|
2,628
|
|
Impairment (note 5.3)
|
(14
|
)
|
|
219
|
|
|
—
|
|
|
—
|
|
|
205
|
|
Disposals
|
(103
|
)
|
|
(1,336
|
)
|
|
(24
|
)
|
|
(9
|
)
|
|
(1,472
|
)
|
Foreign exchange differences
|
(414
|
)
|
|
(1,083
|
)
|
|
(15
|
)
|
|
(1
|
)
|
|
(1,513
|
)
|
Divestments (note 2.3)
|
(14
|
)
|
|
(168
|
)
|
|
—
|
|
|
—
|
|
|
(182
|
)
|
Transfers to assets held for sale (note 2.3)
|
—
|
|
|
(63
|
)
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
Other movements
1
|
—
|
|
|
13
|
|
|
(28
|
)
|
|
(41
|
)
|
|
(56
|
)
|
At December 31, 2016
|
3,138
|
|
|
19,980
|
|
|
993
|
|
|
2,491
|
|
|
26,602
|
|
Depreciation charge for the year
|
329
|
|
|
2,249
|
|
|
—
|
|
|
112
|
|
|
2,690
|
|
Impairment (note 5.3)
|
10
|
|
|
196
|
|
|
—
|
|
|
—
|
|
|
206
|
|
Disposals
|
(61
|
)
|
|
(820
|
)
|
|
(1
|
)
|
|
—
|
|
|
(882
|
)
|
Foreign exchange differences
|
940
|
|
|
4,080
|
|
|
18
|
|
|
2
|
|
|
5,040
|
|
Divestments (note 2.3)
|
(4
|
)
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
Transfers to assets held for sale (note 2.3)
|
(18
|
)
|
|
(64
|
)
|
|
—
|
|
|
—
|
|
|
(82
|
)
|
Other movements
1
|
22
|
|
|
118
|
|
|
(22
|
)
|
|
6
|
|
|
124
|
|
At December 31, 2017
|
4,356
|
|
|
25,700
|
|
|
988
|
|
|
2,611
|
|
|
33,655
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Carrying amount
|
|
|
|
|
|
|
|
|
|
|||||
At December 31, 2016
|
7,970
|
|
|
23,337
|
|
|
2,264
|
|
|
1,260
|
|
|
34,831
|
|
At December 31, 2017
|
8,489
|
|
|
24,474
|
|
|
2,744
|
|
|
1,264
|
|
|
36,971
|
|
|
1.
|
Other movements predominantly represent transfers from construction in progress to other categories and retirement of fully amortized assets.
|
2.
|
Machinery, equipment and other includes biological assets of
36
and
49
as of
December 31, 2017
and
2016
,
respectively, and bearer plants of
35
and
36
as of
December 31, 2017
and
2016
,
respectively.
|
•
|
The fulfillment of the arrangement depends on the use of a specific asset and
|
•
|
The arrangement conveys a right to use the asset.
|
|
|
Year ended December 31,
|
|||||||
Type of asset
|
|
2017
|
|
2016
|
|
2015
|
|||
Goodwill
|
|
—
|
|
|
—
|
|
|
854
|
|
Intangible assets
|
|
—
|
|
|
—
|
|
|
157
|
|
Tangible assets
|
|
206
|
|
|
205
|
|
|
3,753
|
|
Total
|
|
206
|
|
|
205
|
|
|
4,764
|
|
|
NAFTA
|
|
Brazil
|
|
Europe
|
|
ACIS
|
GCGU weighted average pre-tax discount rate used in 2017 (in %)
|
11.9
|
|
15.6
|
|
11.0
|
|
16.3
|
GCGU weighted average pre-tax discount rate used in 2016 (in %)
|
11.7
|
|
16.0
|
|
10.9
|
|
18.7
|
|
2017
|
|
2016
|
||||
|
ACIS
|
|
Brazil
|
|
ACIS
|
|
Brazil
|
Excess of recoverable amount over carrying amount
|
272
|
|
1,307
|
|
705
|
|
555
|
Increase in pre-tax discount rate (change in basis points)
|
72
|
|
140
|
|
191
|
|
93
|
Decrease in average selling price (change in %)
|
0.49
|
|
1.37
|
|
1.72
|
|
1.03
|
Decrease in shipments (change in %)
|
2.16
|
|
4.11
|
|
5.10
|
|
2.36
|
Cash-Generating Unit
|
|
Country
|
|
Operating Segment
|
|
Impairment Recorded
|
|
2017 Pre-Tax Discount Rate
|
|
2016 Pre-Tax Discount Rate
|
|
Carrying amount of property, plant and equipment as of June 30, 2017
|
||||
Long Steel Products
|
|
South Africa
|
|
ACIS
|
|
46
|
|
|
17.12
|
%
|
|
16.63
|
%
|
|
325
|
|
Cash-Generating Unit
|
|
Country
|
|
Operating Segment
|
|
Impairment Recorded
|
|
2017 Pre-Tax Discount Rate
|
|
2016 Pre-Tax Discount Rate
|
|
Carrying amount of property, plant and equipment as of December 31, 2017
|
||||
Vanderbijlpark facility
|
|
South Africa
|
|
ACIS
|
|
86
|
|
|
15.23
|
%
|
|
14.97
|
%
|
|
296
|
|
Long Steel Products
|
|
South Africa
|
|
ACIS
|
|
33
|
|
|
15.24
|
%
|
|
15.22
|
%
|
|
306
|
|
Cash-Generating Unit
|
|
Country
|
|
Operating Segment
|
|
Impairment Recorded
|
|
2016 Pre-Tax Discount Rate
|
|
2015 Pre-Tax Discount Rate
|
|
Carrying amount of property, plant and equipment as of December 31, 2016
|
||||
Vanderbijlpark facility
|
|
South Africa
|
|
ACIS
|
|
125
|
|
|
14.97
|
%
|
|
14.71
|
%
|
|
330
|
|
Cash-Generating Unit
|
|
Country
|
|
Operating Segment
|
|
Impairment Recorded
|
|
2015 Pre-Tax Discount Rate
|
|
2014 Pre-Tax Discount Rate
|
|
Carrying amount of property, plant and equipment as of December 31, 2015
|
||||
ArcelorMittal Liberia
|
|
Liberia
|
|
Mining
|
|
1,363
|
|
|
14.71
|
%
|
|
17.80
|
%
|
|
25
|
|
ArcelorMittal Princeton
|
|
United States
|
|
Mining
|
|
590
|
|
|
8.50
|
%
|
|
11.00
|
%
|
|
4
|
|
Las Truchas Mines
|
|
Mexico
|
|
Mining
|
|
220
|
|
|
10.96
|
%
|
|
12.26
|
%
|
|
—
|
|
ArcelorMittal Serra Azul
|
|
Brazil
|
|
Mining
|
|
176
|
|
|
9.90
|
%
|
|
14.56
|
%
|
|
—
|
|
Volcan mine
|
|
Mexico
|
|
Mining
|
|
10
|
|
|
10.25
|
%
|
|
9.42
|
%
|
|
—
|
|
Saldanha facility
|
|
South Africa
|
|
ACIS
|
|
258
|
|
|
14.18
|
%
|
|
11.90
|
%
|
|
64
|
|
•
|
gross debt (see note 6.1.2)
|
•
|
cash and cash equivalents, restricted cash and reconciliations of cash flows (see note 6.1.3)
|
•
|
net debt (see note 6.1.4)
|
•
|
derivative financial instruments (see note 6.1.5)
|
•
|
other non-derivative financial assets and liabilities (see note 6.1.6)
|
|
December 31, 2017
|
|||||||||||||||||||
|
Carrying amount in the consolidated statements of financial position
|
|
Non-financial assets and liabilities
|
|
Loan and receivables
|
|
Liabilities at amortized cost
|
|
Fair value recognized in profit or loss
|
|
Available-for-sale assets
|
|
Derivatives
|
|||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
2,574
|
|
|
—
|
|
|
2,574
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Restricted cash
|
212
|
|
|
—
|
|
|
212
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Trade accounts receivable and other
|
3,863
|
|
|
—
|
|
|
3,863
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Inventories
|
17,986
|
|
|
17,986
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Prepaid expenses and other current assets
|
1,931
|
|
|
1,270
|
|
|
574
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87
|
|
Assets held for sale
|
179
|
|
|
179
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total current assets
|
26,745
|
|
|
19,435
|
|
|
7,223
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and intangible assets
|
5,737
|
|
|
5,737
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Property, plant and equipment and biological assets
|
36,971
|
|
|
36,935
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
—
|
|
Investments in associates and joint ventures
|
5,084
|
|
|
5,084
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other investments
|
1,471
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,471
|
|
|
—
|
|
Deferred tax assets
|
7,055
|
|
|
7,055
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other assets
|
2,234
|
|
|
411
|
|
|
834
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
989
|
|
Total non-current assets
|
58,552
|
|
|
55,222
|
|
|
834
|
|
|
—
|
|
|
36
|
|
|
1,471
|
|
|
989
|
|
Total assets
|
85,297
|
|
|
74,657
|
|
|
8,057
|
|
|
—
|
|
|
36
|
|
|
1,471
|
|
|
1,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current portion of long-term debt
|
2,785
|
|
|
—
|
|
|
—
|
|
|
2,785
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Trade accounts payable and other
|
13,428
|
|
|
—
|
|
|
—
|
|
|
13,428
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Short-term provisions
|
410
|
|
|
394
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Accrued expenses and other liabilities
|
4,505
|
|
|
1,080
|
|
|
—
|
|
|
3,100
|
|
|
—
|
|
|
—
|
|
|
325
|
|
Income tax liabilities
|
232
|
|
|
232
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Liabilities held for sale
|
50
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total current liabilities
|
21,410
|
|
|
1,756
|
|
|
—
|
|
|
19,329
|
|
|
—
|
|
|
—
|
|
|
325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of current portion
|
10,143
|
|
|
—
|
|
|
—
|
|
|
10,143
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Deferred tax liabilities
|
2,684
|
|
|
2,684
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Deferred employee benefits
|
7,630
|
|
|
7,630
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Long-term provisions
|
1,612
|
|
|
1,612
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other long-term obligations
|
963
|
|
|
204
|
|
|
—
|
|
|
415
|
|
|
—
|
|
|
—
|
|
|
344
|
|
Total non-current liabilities
|
23,032
|
|
|
12,130
|
|
|
—
|
|
|
10,558
|
|
|
—
|
|
|
—
|
|
|
344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to the equity holders of the parent
|
38,789
|
|
|
38,789
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-controlling interests
|
2,066
|
|
|
2,066
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total equity
|
40,855
|
|
|
40,855
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total liabilities and equity
|
85,297
|
|
|
54,741
|
|
|
—
|
|
|
29,887
|
|
|
—
|
|
|
—
|
|
|
669
|
|
|
December 31, 2016
|
|||||||||||||||||||
|
Carrying amount in the consolidated statements of financial position
|
|
Non-financial assets and liabilities
|
|
Loan and receivables
|
|
Liabilities at amortized cost
|
|
Fair value recognized in profit or loss
|
|
Available-for-sale assets
|
|
Derivatives
|
|||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
2,501
|
|
|
—
|
|
|
2,501
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Restricted cash
|
114
|
|
|
—
|
|
|
114
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Trade accounts receivable and other
|
2,974
|
|
|
—
|
|
|
2,974
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Inventories
|
14,734
|
|
|
14,734
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Prepaid expenses and other current assets
|
1,665
|
|
|
967
|
|
|
455
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
243
|
|
Assets held for sale
|
259
|
|
|
259
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total current assets
|
22,247
|
|
|
15,960
|
|
|
6,044
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and intangible assets
|
5,651
|
|
|
5,651
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Property, plant and equipment and biological assets
|
34,831
|
|
|
34,782
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
Investments in associates and joint ventures
|
4,297
|
|
|
4,297
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other investments
|
926
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
926
|
|
|
—
|
|
Deferred tax assets
|
5,837
|
|
|
5,837
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other assets
|
1,353
|
|
|
408
|
|
|
756
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
189
|
|
Total non-current assets
|
52,895
|
|
|
50,975
|
|
|
756
|
|
|
—
|
|
|
49
|
|
|
926
|
|
|
189
|
|
Total assets
|
75,142
|
|
|
66,935
|
|
|
6,800
|
|
|
—
|
|
|
49
|
|
|
926
|
|
|
432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current portion of long-term debt
|
1,885
|
|
|
—
|
|
|
—
|
|
|
1,885
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Trade accounts payable and other
|
11,633
|
|
|
—
|
|
|
—
|
|
|
11,633
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Short-term provisions
|
426
|
|
|
410
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Accrued expenses and other liabilities
|
3,943
|
|
|
880
|
|
|
—
|
|
|
2,837
|
|
|
—
|
|
|
—
|
|
|
226
|
|
Income tax liabilities
|
133
|
|
|
133
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Liabilities held for sale
|
95
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total current liabilities
|
18,115
|
|
|
1,518
|
|
|
—
|
|
|
16,371
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of current portion
|
11,789
|
|
|
—
|
|
|
—
|
|
|
11,789
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Deferred tax liabilities
|
2,529
|
|
|
2,529
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Deferred employee benefits
|
8,297
|
|
|
8,297
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Long-term provisions
|
1,521
|
|
|
1,518
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other long-term obligations
|
566
|
|
|
186
|
|
|
—
|
|
|
310
|
|
|
—
|
|
|
—
|
|
|
70
|
|
Total non-current liabilities
|
24,702
|
|
|
12,530
|
|
|
—
|
|
|
12,102
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to the equity holders of the parent
|
30,135
|
|
|
30,135
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-controlling interests
|
2,190
|
|
|
2,190
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total equity
|
32,325
|
|
|
32,325
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total liabilities and equity
|
75,142
|
|
|
46,373
|
|
|
—
|
|
|
28,473
|
|
|
—
|
|
|
—
|
|
|
296
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||
Assets at fair value:
|
|
|
|
|
|
|
|
|
||||
Available-for-sale financial assets
1
|
|
1,444
|
|
|
—
|
|
|
—
|
|
|
1,444
|
|
Derivative financial current assets
|
|
—
|
|
|
87
|
|
|
—
|
|
|
87
|
|
Derivative financial non-current assets
|
|
—
|
|
|
5
|
|
|
984
|
|
|
989
|
|
Total assets at fair value
|
|
1,444
|
|
|
92
|
|
|
984
|
|
|
2,520
|
|
Liabilities at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial current liabilities
|
|
—
|
|
|
247
|
|
|
78
|
|
|
325
|
|
Derivative financial non-current liabilities
|
|
—
|
|
|
158
|
|
|
186
|
|
|
344
|
|
Total liabilities at fair value
|
|
—
|
|
|
405
|
|
|
264
|
|
|
669
|
|
1.
|
The balance does not include equity investments of
27
carried at cost
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||
Assets at fair value:
|
|
|
|
|
|
|
|
|
||||
Available-for-sale financial assets
1
|
|
894
|
|
|
—
|
|
|
—
|
|
|
894
|
|
Derivative financial current assets
|
|
—
|
|
|
243
|
|
|
—
|
|
|
243
|
|
Derivative financial non-current assets
|
|
—
|
|
|
14
|
|
|
175
|
|
|
189
|
|
Total assets at fair value
|
|
894
|
|
|
257
|
|
|
175
|
|
|
1,326
|
|
Liabilities at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial current liabilities
|
|
—
|
|
|
226
|
|
|
—
|
|
|
226
|
|
Derivative financial non-current liabilities
|
|
—
|
|
|
37
|
|
|
33
|
|
|
70
|
|
Total liabilities at fair value
|
|
—
|
|
|
263
|
|
|
33
|
|
|
296
|
|
1.
|
The balance does not include equity investments of
32
carried at cost
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
Short-term bank loans and other credit facilities including commercial paper
1
|
1,735
|
|
|
1,123
|
|
Current portion of long-term debt
|
976
|
|
|
697
|
|
Lease obligations
|
74
|
|
|
65
|
|
Total
|
2,785
|
|
|
1,885
|
|
1.
|
The weighted average interest rate on short-term borrowings outstanding was
3.1%
and
2.7%
as of
December 31, 2017
and
2016
, respectively.
|
|
|
|
|
|
|
|
December 31,
|
||||
|
Year of maturity
|
|
Type of Interest
|
|
Interest rate
1
|
|
2017
|
|
2016
|
||
Corporate
|
|
|
|
|
|
|
|
|
|
||
5.5 billion Revolving Credit Facility - 2.3 billion tranche
|
2019
|
|
Floating
|
|
|
|
—
|
|
|
—
|
|
5.5 billion Revolving Credit Facility - 3.2 billion tranche
|
2021
|
|
Floating
|
|
|
|
—
|
|
|
—
|
|
€1.0 billion Unsecured Bonds
2
|
2017
|
|
Fixed
|
|
5.88%
|
|
—
|
|
|
568
|
|
€500 million Unsecured Notes
|
2018
|
|
Fixed
|
|
5.75%
|
|
400
|
|
|
351
|
|
€400 million Unsecured Notes
|
2018
|
|
Floating
|
|
1.70%
|
|
480
|
|
|
421
|
|
1.5 billion Unsecured Notes
3
|
2018
|
|
Fixed
|
|
6.13%
|
|
—
|
|
|
648
|
|
€750 million Unsecured Notes
|
2019
|
|
Fixed
|
|
3.00%
|
|
897
|
|
|
788
|
|
1.5 billion Unsecured Notes
4
|
2019
|
|
Fixed
|
|
10.60%
|
|
—
|
|
|
842
|
|
500 Unsecured Notes
|
2020
|
|
Fixed
|
|
5.13%
|
|
323
|
|
|
323
|
|
CHF 225 million Unsecured Notes
|
2020
|
|
Fixed
|
|
2.50%
|
|
230
|
|
|
220
|
|
€600 million Unsecured Notes
|
2020
|
|
Fixed
|
|
2.88%
|
|
715
|
|
|
627
|
|
1.0 billion Unsecured Bonds
|
2020
|
|
Fixed
|
|
5.75%
|
|
622
|
|
|
620
|
|
1.5 billion Unsecured Notes
|
2021
|
|
Fixed
|
|
6.00%
|
|
753
|
|
|
752
|
|
€500 million Unsecured Notes
|
2021
|
|
Fixed
|
|
3.00%
|
|
597
|
|
|
523
|
|
€750 million Unsecured Notes
|
2022
|
|
Fixed
|
|
3.13%
|
|
895
|
|
|
786
|
|
1.1 billion Unsecured Notes
5
|
2022
|
|
Fixed
|
|
6.75%
|
|
655
|
|
|
1,092
|
|
€500 million Unsecured Notes
|
2023
|
|
Fixed
|
|
0.95%
|
|
593
|
|
|
—
|
|
500 Unsecured Notes
|
2025
|
|
Fixed
|
|
6.13%
|
|
497
|
|
|
497
|
|
1.5 billion Unsecured Bonds
5
|
2039
|
|
Fixed
|
|
7.50%
|
|
1,092
|
|
|
1,466
|
|
1.0 billion Unsecured Notes
5
|
2041
|
|
Fixed
|
|
7.25%
|
|
619
|
|
|
984
|
|
Other loans
|
2018-2021
|
|
Fixed
|
|
1.25% - 2.15%
|
|
53
|
|
|
29
|
|
EIB loan
|
2019-2025
|
|
Fixed
|
|
1.16%
|
|
420
|
|
|
—
|
|
ICO loan
|
2017
|
|
Floating
|
|
2.18%
|
|
—
|
|
|
7
|
|
Other loans
|
2018 - 2035
|
|
Floating
|
|
0.01% - 3.99%
|
|
672
|
|
|
250
|
|
Total Corporate
|
|
|
|
|
|
|
10,513
|
|
|
11,794
|
|
|
|
|
|
|
|
|
|
|
|
||
Other loans - Americas
|
2018 - 2025
|
|
Fixed/Floating
|
|
0.00% - 10.00%
|
|
107
|
|
|
198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans - Europe
|
2019 - 2027
|
|
Fixed/Floating
|
|
0.00% - 4.63%
|
|
85
|
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
||
Total
|
|
|
|
|
|
|
10,705
|
|
|
12,022
|
|
Less current portion of long-term debt
|
|
|
|
|
|
|
(976
|
)
|
|
(697
|
)
|
Total long-term debt (excluding lease obligations)
|
|
|
|
|
|
|
9,729
|
|
|
11,325
|
|
Long-term lease obligations
6
|
|
|
|
|
|
|
414
|
|
|
464
|
|
Total long-term debt, net of current portion
|
|
|
|
|
|
|
10,143
|
|
|
11,789
|
|
1.
|
Rates applicable to balances outstanding at
December 31, 2017
, including the effect of step-ups and step-downs following rating changes. For debt that has been redeemed in its entirety during
2017
, the interest rates refer to the rates at repayment date.
|
2.
|
Amount outstanding was repaid at the original maturity, November 17, 2017.
|
3.
|
Early redeemed on December 28, 2017.
|
4.
|
Early redeemed on April 3, 2017.
|
5.
|
Bonds or Notes partially repurchased on October 16, 2017, pursuant to cash tender offer.
|
6.
|
Net of current portion of
74
and
65
in
2017
and in
2016
, respectively.
|
•
|
441
of its U.S. dollar denominated
6.25%
Notes due February 25, 2022 (the “USD 2022 Notes”) for a total aggregate purchase price (including premiums and accrued interest) of
510
. Following this purchase,
659
principal amount of the USD 2022 Notes remained outstanding.
|
•
|
371
of its U.S. dollar denominated
6.75%
Notes due March 1, 2041 (the “USD 2041 Notes”) for a total aggregate purchase price (including premiums and accrued interest) of
445
. Following this purchase,
629
principal amount of the USD 2041 Notes remained outstanding.
|
•
|
383
of its U.S. dollar denominated
7.00%
Notes due October 15, 2039 (the “2039 Notes”) for a total aggregate purchase price (including premiums and accrued interest) of
464
. Following this purchase,
1,117
principal amount of the USD 2039 Notes remained outstanding.
|
Nominal value
|
|
Date of issuance
|
|
Repayment date
|
|
Original interest rate
|
|
Current interest rate
1
|
|
Issued at
|
€400 million Unsecured Notes
|
|
Apr 9, 2015
|
|
Apr 9, 2018
|
|
Euribor 3M + 2.03%
|
|
Euribor 3M + 2.03%
|
|
100.00%
|
€500 million Unsecured Notes
|
|
Mar 29, 2012
|
|
Mar 29, 2018
|
|
4.50%
|
|
5.75%
|
|
99.71%
|
€750 million Unsecured Notes
|
|
Mar 25, 2014
|
|
Mar 25, 2019
|
|
3.00%
|
|
3.00%
|
|
99.65%
|
500 million Unsecured Notes
|
|
Jun 1, 2015
|
|
Jun 1, 2020
|
|
5.13%
|
|
5.13%
|
|
100.00%
|
CHF 225 million Unsecured Notes
|
|
Jul 3, 2015
|
|
Jul 3, 2020
|
|
2.50%
|
|
2.50%
|
|
100.00%
|
€600 million Unsecured Notes
|
|
Jul 4, 2014
|
|
Jul 6, 2020
|
|
2.88%
|
|
2.88%
|
|
99.18%
|
1.0 billion Unsecured Bonds
|
|
Aug 5, 2010
|
|
Aug 5, 2020
|
|
5.25%
|
|
5.75%
|
|
98.46%
|
1.5 billion Unsecured Notes
|
|
Mar 7, 2011
|
|
Mar 1, 2021
|
|
5.50%
|
|
6.00%
|
|
99.36%
|
€500 million Unsecured Notes
|
|
Apr 9, 2015
|
|
Apr 9, 2021
|
|
3.00%
|
|
3.00%
|
|
99.55%
|
€750 million Unsecured Notes
|
|
Jan 14, 2015
|
|
Jan 14, 2022
|
|
3.13%
|
|
3.13%
|
|
99.73%
|
1.1 billion Unsecured Notes
|
|
Feb 28, 2012
|
|
Feb 25, 2022
|
|
6.25%
|
|
6.75%
|
|
98.28%
|
€500 million Unsecured Notes
|
|
Dec 4, 2017
|
|
Jan 17, 2023
|
|
0.95%
|
|
0.95%
|
|
99.38%
|
500 million Unsecured Notes
|
|
Jun 1, 2015
|
|
Jun 1, 2025
|
|
6.13%
|
|
6.13%
|
|
100.00%
|
1.0 billion Unsecured Bonds
|
|
Oct 8, 2009
|
|
Oct 15, 2039
|
|
7.00%
|
|
7.50%
|
|
95.20%
|
500 Unsecured Bonds
|
|
Aug 5, 2010
|
|
Oct 15, 2039
|
|
7.00%
|
|
7.50%
|
|
104.84%
|
1.0 billion Unsecured Notes
|
|
Mar 7, 2011
|
|
Mar 1, 2041
|
|
6.75%
|
|
7.25%
|
|
99.18%
|
1.
|
Rates applicable at December 31, 2017.
|
Year of maturity
|
|
Amount
|
|
2018
|
|
2,785
|
|
2019
|
|
1,211
|
|
2020
|
|
2,100
|
|
2021
|
|
1,789
|
|
2022
|
|
1,710
|
|
Subsequent years
|
|
3,333
|
|
Total
|
|
12,928
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||
|
Carrying Amount
|
|
Estimated Fair Value
|
|
Carrying Amount
|
|
Estimated Fair Value
|
||||
Instruments payable bearing interest at fixed rates
|
9,862
|
|
|
11,084
|
|
|
11,657
|
|
|
12,666
|
|
Instruments payable bearing interest at variable rates
|
1,331
|
|
|
1,301
|
|
|
894
|
|
|
838
|
|
Total long-term debt, including current portion
|
11,193
|
|
|
12,385
|
|
|
12,551
|
|
|
13,504
|
|
Short term bank loans and other credit facilities including commercial paper
|
1,735
|
|
|
1,731
|
|
|
1,123
|
|
|
1,139
|
|
As of December 31, 2017
|
Carrying amount
|
|
Fair Value
|
|||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||
Instruments payable bearing interest at fixed rates
|
9,862
|
|
|
9,946
|
|
|
1,138
|
|
|
—
|
|
|
11,084
|
|
Instruments payable bearing interest at variable rates
|
1,331
|
|
|
481
|
|
|
820
|
|
|
—
|
|
|
1,301
|
|
Total long-term debt, including current portion
|
11,193
|
|
|
10,427
|
|
|
1,958
|
|
|
—
|
|
|
12,385
|
|
Short term bank loans and other credit facilities including commercial paper
|
1,735
|
|
|
|
|
1,731
|
|
|
—
|
|
|
1,731
|
|
As of December 31, 2016
|
Carrying amount
|
|
Fair Value
|
|||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||
Instruments payable bearing interest at fixed rates
|
11,657
|
|
|
11,939
|
|
|
727
|
|
|
—
|
|
|
12,666
|
|
Instruments payable bearing interest at variable rates
|
894
|
|
|
408
|
|
|
430
|
|
|
—
|
|
|
838
|
|
Total long-term debt, including current portion
|
12,551
|
|
|
12,347
|
|
|
1,157
|
|
|
—
|
|
|
13,504
|
|
Short term bank loans and other credit facilities including commercial paper
|
1,123
|
|
|
|
|
|
1,139
|
|
|
—
|
|
|
1,139
|
|
1
|
Money market funds are highly liquid investments with a maturity of 3
months or less from the date of acquisition.
|
|
Long-term debt, net of current portion
|
|
Short-term debt and current portion of long term debt
|
||
Balance as of December 31, 2016 (note 6.1.2)
|
11,789
|
|
|
1,885
|
|
Proceeds from long-term debt
|
1,407
|
|
|
—
|
|
Payments of long-term debt
|
(2,691
|
)
|
|
—
|
|
Amortized cost
|
19
|
|
|
22
|
|
Unrealized foreign exchange effects
|
589
|
|
|
190
|
|
Proceeds from short-term debt
|
—
|
|
|
1,859
|
|
Payments of short-term debt
1
|
—
|
|
|
(2,164
|
)
|
Current portion of long-term debt
|
(976
|
)
|
|
976
|
|
Other movements
|
6
|
|
|
17
|
|
Balance as of December 31, 2017 (note 6.1.2)
|
10,143
|
|
|
2,785
|
|
1.
|
Cash payments by the Company for the reduction of the outstanding liability relating to a lease is classified under other financing activities in the Company's consolidated statements of cash flows.
|
|
Total USD
|
|
|
EUR
|
|
|
USD
|
|
|
CHF
|
|
|
ZAR
|
|
|
CAD
|
|
|
Other
(in USD) |
|
Short-term debt and current portion of long-term debt
|
2,785
|
|
|
1,875
|
|
|
291
|
|
|
—
|
|
|
304
|
|
|
191
|
|
|
124
|
|
Long-term debt, net of current portion
|
10,143
|
|
|
4,831
|
|
|
5,044
|
|
|
230
|
|
|
4
|
|
|
1
|
|
|
33
|
|
Cash and cash equivalents including restricted cash
|
(2,786
|
)
|
|
(724
|
)
|
|
(1,387
|
)
|
|
(1
|
)
|
|
(249
|
)
|
|
(17
|
)
|
|
(408
|
)
|
Net debt
|
10,142
|
|
|
5,982
|
|
|
3,948
|
|
|
229
|
|
|
59
|
|
|
175
|
|
|
(251
|
)
|
|
December 31, 2017
|
||||||||||||||||
|
Assets
|
|
Liabilities
|
||||||||||||||
|
Notional Amount
|
|
Fair Value
|
|
Average Rate
1
|
|
Notional Amount
|
|
Fair Value
|
|
Average Rate
1
|
||||||
Interest rate swaps - fixed rate borrowings/loans
|
6
|
|
|
—
|
|
|
0.98
|
%
|
|
6
|
|
|
—
|
|
|
1.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange rate instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward purchase contracts
|
586
|
|
|
8
|
|
|
|
|
|
3,939
|
|
|
(140
|
)
|
|
|
|
Forward sale contracts
|
525
|
|
|
17
|
|
|
|
|
|
774
|
|
|
(11
|
)
|
|
|
|
Currency swaps purchases
|
—
|
|
|
—
|
|
|
|
|
|
9
|
|
|
(7
|
)
|
|
|
|
Currency swaps sales
|
—
|
|
|
—
|
|
|
|
|
|
1,000
|
|
|
(157
|
)
|
|
|
|
Exchange option purchases
|
—
|
|
|
—
|
|
|
|
|
|
338
|
|
|
(7
|
)
|
|
|
|
Exchange options sales
|
—
|
|
|
—
|
|
|
|
|
|
319
|
|
|
(5
|
)
|
|
|
|
Total foreign exchange rate instruments
|
|
|
|
25
|
|
|
|
|
|
|
|
|
(327
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw materials (base metals), freight, energy, emission rights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term contracts sales
|
20
|
|
|
1
|
|
|
|
|
|
467
|
|
|
(38
|
)
|
|
|
|
Term contracts purchases
|
796
|
|
|
65
|
|
|
|
|
|
534
|
|
|
(40
|
)
|
|
|
|
Options sales/purchases
|
9
|
|
|
1
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
Total raw materials (base metals), freight, energy, emission rights
|
|
|
|
67
|
|
|
|
|
|
|
|
|
(78
|
)
|
|
|
|
Total
|
|
|
|
92
|
|
|
|
|
|
|
|
|
(405
|
)
|
|
|
1.
|
The average rate is determined for fixed rate instruments on basis of the U.S. dollar and foreign currency rates and for variable rate instruments generally on the basis of Euribor or Libor.
|
|
December 31, 2016
|
|||||||||||
|
Assets
|
|
Liabilities
|
|||||||||
|
Notional Amount
|
|
Fair Value
|
|
|
Notional Amount
|
|
Fair Value
|
||||
Foreign exchange rate instruments
|
|
|
|
|
|
|
|
|
||||
Forward purchase contracts
|
3,784
|
|
|
153
|
|
|
|
658
|
|
|
(21
|
)
|
Forward sale contracts
|
685
|
|
|
10
|
|
|
|
657
|
|
|
(26
|
)
|
Currency swaps purchases
|
138
|
|
|
6
|
|
|
|
44
|
|
|
(33
|
)
|
Currency swaps sales
|
500
|
|
|
4
|
|
|
|
500
|
|
|
(24
|
)
|
Exchange option purchases
|
169
|
|
|
1
|
|
|
|
37
|
|
|
—
|
|
Exchange options sales
|
109
|
|
|
1
|
|
|
|
—
|
|
|
—
|
|
Total foreign exchange rate instruments
|
|
|
175
|
|
|
|
|
|
(104
|
)
|
||
Raw materials (base metals), freight, energy, emission rights
|
|
|
|
|
|
|
|
|
||||
Term contracts sales
|
329
|
|
|
18
|
|
|
|
312
|
|
|
(36
|
)
|
Term contracts purchases
|
416
|
|
|
64
|
|
|
|
841
|
|
|
(123
|
)
|
Option sales/purchases
|
6
|
|
|
—
|
|
|
|
6
|
|
|
—
|
|
Total raw materials (base metals), freight, energy, emission rights
|
|
|
82
|
|
|
|
|
|
(159
|
)
|
||
Total
|
|
|
257
|
|
|
|
|
|
(263
|
)
|
|
Call option on 1,000 mandatory convertible bonds
|
|
Special payment in pellet purchase agreement
|
|
Total
|
|||
Balance as of December 31, 2015
|
4
|
|
|
—
|
|
|
4
|
|
Change in fair value
|
171
|
|
|
(33
|
)
|
|
138
|
|
Balance as of December 31, 2016
|
175
|
|
|
(33
|
)
|
|
142
|
|
Change in fair value
|
809
|
|
|
(231
|
)
|
|
578
|
|
Balance as of December 31, 2017
|
984
|
|
|
(264
|
)
|
|
720
|
|
|
Year ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Interest expense
|
(879
|
)
|
|
(1,172
|
)
|
|
(1,383
|
)
|
Interest income
|
56
|
|
|
58
|
|
|
105
|
|
Change in fair value adjustment on call option on mandatory convertible bonds and pellet purchase agreement (note 6.1.5)
|
578
|
|
|
138
|
|
|
(108
|
)
|
Accretion of defined benefit obligations and other long term liabilities
|
(353
|
)
|
|
(435
|
)
|
|
(399
|
)
|
Net foreign exchange result
|
546
|
|
|
(3
|
)
|
|
(697
|
)
|
Other
1
|
(823
|
)
|
|
(642
|
)
|
|
(376
|
)
|
Total
|
(875
|
)
|
|
(2,056
|
)
|
|
(2,858
|
)
|
1.
|
Other mainly includes expenses related to true sale of receivables (“TSR”) programs and bank fees. It also includes premiums and fees of
389
relating to the bonds early redeemed in 2017 (
399
of premiums and fees relating to bonds early redeemed in
2016
). In 2017 and in
2015
, other also includes expenses relating to the extension of the mandatory convertible bonds (see note 10.2) of
92
and
79
,
respectively.
|
|
December 31, 2017
|
||||||||||||||||
|
Carrying amount
|
|
Contractual Cash Flow
|
|
2018
|
|
2019
|
|
from 2020 to 2022
|
|
After 2022
|
||||||
Non-derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Bonds
|
(9,458
|
)
|
|
(13,514
|
)
|
|
(1,309
|
)
|
|
(1,306
|
)
|
|
(5,658
|
)
|
|
(5,241
|
)
|
Loans over 100
|
(1,371
|
)
|
|
(1,546
|
)
|
|
(549
|
)
|
|
(118
|
)
|
|
(676
|
)
|
|
(203
|
)
|
Trade and other payables
|
(13,428
|
)
|
|
(13,448
|
)
|
|
(13,448
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Other loans
|
(2,099
|
)
|
|
(2,232
|
)
|
|
(1,444
|
)
|
|
(263
|
)
|
|
(258
|
)
|
|
(267
|
)
|
Total
|
(26,356
|
)
|
|
(30,740
|
)
|
|
(16,750
|
)
|
|
(1,687
|
)
|
|
(6,592
|
)
|
|
(5,711
|
)
|
Derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
(327
|
)
|
|
(327
|
)
|
|
(170
|
)
|
|
—
|
|
|
(64
|
)
|
|
(93
|
)
|
Other commodities contracts
1
|
(342
|
)
|
|
(342
|
)
|
|
(156
|
)
|
|
(37
|
)
|
|
(68
|
)
|
|
(81
|
)
|
Total
|
(669
|
)
|
|
(669
|
)
|
|
(326
|
)
|
|
(37
|
)
|
|
(132
|
)
|
|
(174
|
)
|
1.
|
Commodity contracts include base metals, freight, energy and emission rights.
|
|
December 31, 2016
|
||||||||||||||||
|
Carrying amount
|
|
Contractual Cash Flow
|
|
2017
|
|
2018
|
|
from 2019 to 2021
|
|
After 2021
|
||||||
Non-derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Bonds
|
(11,597
|
)
|
|
(18,228
|
)
|
|
(1,261
|
)
|
|
(2,076
|
)
|
|
(6,093
|
)
|
|
(8,798
|
)
|
Loans over 100
|
(694
|
)
|
|
(873
|
)
|
|
(546
|
)
|
|
(57
|
)
|
|
(172
|
)
|
|
(98
|
)
|
Trade and other payables
|
(11,633
|
)
|
|
(11,647
|
)
|
|
(11,647
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Other loans
|
(1,383
|
)
|
|
(1,523
|
)
|
|
(856
|
)
|
|
(124
|
)
|
|
(370
|
)
|
|
(173
|
)
|
Total
|
(25,307
|
)
|
|
(32,271
|
)
|
|
(14,310
|
)
|
|
(2,257
|
)
|
|
(6,635
|
)
|
|
(9,069
|
)
|
Derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
(104
|
)
|
|
(104
|
)
|
|
(73
|
)
|
|
(7
|
)
|
|
—
|
|
|
(24
|
)
|
Other commodities contracts
1
|
(192
|
)
|
|
(192
|
)
|
|
(153
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|
(33
|
)
|
Total
|
(296
|
)
|
|
(296
|
)
|
|
(226
|
)
|
|
(12
|
)
|
|
(1
|
)
|
|
(57
|
)
|
1.
|
Commodity contracts include base metals, freight, energy and emission rights.
|
|
December 31, 2017
|
||||||||||||||||
|
Assets/ (liabilities)
|
|
(Outflows)/inflows
|
||||||||||||||
|
Fair value
|
|
3 months and less
|
|
3-6 months
|
|
6-12 months
|
|
2019
|
|
After 2019
|
||||||
Foreign exchange contracts
|
(118
|
)
|
|
(83
|
)
|
|
(25
|
)
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
Commodities
|
20
|
|
|
9
|
|
|
4
|
|
|
6
|
|
|
1
|
|
|
—
|
|
Emission rights
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
Total
|
(135
|
)
|
|
(74
|
)
|
|
(21
|
)
|
|
(41
|
)
|
|
1
|
|
|
—
|
|
|
December 31, 2016
|
||||||||||||||||
|
Assets/ (liabilities)
|
|
(Outflows)/inflows
|
||||||||||||||
|
Fair value
|
|
3 months and less
|
|
3-6 months
|
|
6-12 months
|
|
2018
|
|
After 2018
|
||||||
Foreign exchange contracts
|
87
|
|
|
36
|
|
|
32
|
|
|
19
|
|
|
—
|
|
|
—
|
|
Commodities
|
22
|
|
|
10
|
|
|
2
|
|
|
5
|
|
|
5
|
|
|
—
|
|
Emission rights
|
(104
|
)
|
|
—
|
|
|
—
|
|
|
(104
|
)
|
|
—
|
|
|
—
|
|
Total
|
5
|
|
|
46
|
|
|
34
|
|
|
(80
|
)
|
|
5
|
|
|
—
|
|
|
December 31, 2017
|
||||||||||||||||
|
Assets/ (liabilities)
|
|
(Expense)/income
|
||||||||||||||
|
Carrying amount
|
|
3 months and less
|
|
3-6 months
|
|
6-12 months
|
|
2019
|
|
After 2019
|
||||||
Foreign exchange contracts
|
(141
|
)
|
|
(95
|
)
|
|
(26
|
)
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
Commodity contracts
|
19
|
|
|
9
|
|
|
4
|
|
|
5
|
|
|
1
|
|
|
—
|
|
Emission rights
|
84
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
33
|
|
|
44
|
|
Total
|
(38
|
)
|
|
(86
|
)
|
|
(22
|
)
|
|
(8
|
)
|
|
34
|
|
|
44
|
|
|
December 31, 2016
|
||||||||||||||||
|
Assets/ (liabilities)
|
|
(Expense)/income
|
||||||||||||||
|
Carrying amount
|
|
3 months and less
|
|
3-6 months
|
|
6-12 months
|
|
2018
|
|
After 2018
|
||||||
Foreign exchange contracts
|
54
|
|
|
4
|
|
|
29
|
|
|
21
|
|
|
—
|
|
|
—
|
|
Commodity contracts
|
23
|
|
|
11
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
—
|
|
Emission rights
|
22
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
22
|
|
Total
|
99
|
|
|
15
|
|
|
33
|
|
|
24
|
|
|
5
|
|
|
22
|
|
|
|
December 31, 2017
|
||||||||
Derivatives
|
|
Notional amount
|
|
Date traded
|
|
Fair value at
December 31, 2016 |
|
Change in fair value
|
|
Fair value as of December 31, 2017
1
|
CCS 5Y
|
|
500
|
|
May 27, 2015
|
|
3
|
|
(67)
|
|
(64)
|
CCS 10Y
|
|
300
|
|
May 27, 2015
|
|
(14)
|
|
(42)
|
|
(56)
|
CCS 10Y
|
|
160
|
|
May 27, 2015
|
|
(8)
|
|
(22)
|
|
(30)
|
CCS 10Y
|
|
40
|
|
May 27, 2015
|
|
(2)
|
|
(5)
|
|
(7)
|
Total
|
|
1,000
|
|
|
|
(21)
|
|
(136)
|
|
(157)
|
1.
|
The net investment hedges were fully effective. As such, the change in fair value is entirely recorded in other comprehensive income.
|
|
|
December 31, 2016
|
||||||||
Derivatives
|
|
Notional amount
|
|
Date traded
|
|
Fair value at
December 31, 2015 |
|
Change in fair value
|
|
Fair value as of December 31, 2016
1
|
CCS 30Y
|
|
250
|
|
December 3, 2014
|
|
56
|
|
(56)
|
|
—
|
CCS 30Y
|
|
125
|
|
December 12, 2014
|
|
29
|
|
(29)
|
|
—
|
CCS 5Y
|
|
500
|
|
May 27, 2015
|
|
(7)
|
|
10
|
|
3
|
CCS 10Y
|
|
300
|
|
May 27, 2015
|
|
(10)
|
|
(4)
|
|
(14)
|
CCS 10Y
|
|
160
|
|
May 27, 2015
|
|
(6)
|
|
(2)
|
|
(8)
|
CCS 10Y
|
|
40
|
|
May 27, 2015
|
|
(1)
|
|
(1)
|
|
(2)
|
Total
|
|
1,375
|
|
|
|
61
|
|
(82)
|
|
(21)
|
1.
|
The net investment hedges were fully effective. As such, the change in fair value is entirely recorded in other comprehensive income.
|
|
December 31,
|
||
|
2017
|
|
2016
|
Base metals
|
26
|
|
28
|
Freight
|
—
|
|
—
|
Energy (oil, gas, electricity)
|
—
|
|
(1)
|
Emission rights
|
(37)
|
|
(104)
|
Total
|
(11)
|
|
(77)
|
|
|
|
|
Derivative assets associated with raw materials, energy, freight and emission rights
|
67
|
|
82
|
Derivative liabilities associated with raw materials, energy, freight and emission rights
|
(78)
|
|
(159)
|
Total
|
(11)
|
|
(77)
|
|
December 31, 2017
|
||
|
Income
|
|
Other Equity
|
10% strengthening in U.S. dollar
|
(24)
|
|
497
|
10% weakening in U.S. dollar
|
13
|
|
(511)
|
|
December 31, 2016
|
||
|
Income
|
|
Other Equity
|
10% strengthening in U.S. dollar
|
(3)
|
|
377
|
10% weakening in U.S. dollar
|
6
|
|
(375)
|
|
December 31, 2017
|
||
|
Floating porting of net debt
1
|
|
Interest Rate Swaps/Forward Rate Agreements
|
100 bp increase
|
11
|
|
—
|
100 bp decrease
|
(11)
|
|
—
|
|
December 31, 2016
|
||
|
Floating porting of net debt
1
|
|
Interest Rate Swaps/Forward Rate Agreements
|
100 bp increase
|
11
|
|
—
|
100 bp decrease
|
(11)
|
|
—
|
1.
|
Please refer to note 6.1.4 for a description of net debt (including fixed and floating portion)
|
|
December 31, 2017
|
||
|
Income
|
|
Other Equity Cash Flow Hedging Reserves
|
+10% in prices
|
|
|
|
Base Metals
|
4
|
|
30
|
Iron Ore
|
—
|
|
—
|
Emission rights
|
—
|
|
45
|
Energy
|
1
|
|
—
|
-10% in prices
|
|
|
|
Base Metals
|
(4)
|
|
(30)
|
Iron Ore
|
—
|
|
—
|
Emission rights
|
—
|
|
(45)
|
Energy
|
(1)
|
|
—
|
|
December 31, 2016
|
||
|
Income
|
|
Other Equity Cash Flow Hedging Reserves
|
+10% in prices
|
|
|
|
Base Metals
|
4
|
|
18
|
Iron Ore
|
(10)
|
|
1
|
Emission rights
|
—
|
|
32
|
Energy
|
(8)
|
|
1
|
-10% in prices
|
|
|
|
Base Metals
|
(3)
|
|
(18)
|
Iron Ore
|
10
|
|
(1)
|
Emission rights
|
—
|
|
(32)
|
Energy
|
8
|
|
(1)
|
|
Year Ended December 31,
|
|||||||
Employee Information
|
2017
|
|
2016
|
|
2015
|
|||
Wages and salaries
|
7,912
|
|
|
7,675
|
|
|
8,392
|
|
Pension cost (see note 7.2)
|
265
|
|
|
124
|
|
|
237
|
|
Gain following new labor agreement in the U.S. (see note 7.2)
|
—
|
|
|
(832
|
)
|
|
—
|
|
Other staff expenses
|
1,791
|
|
|
1,591
|
|
|
1,695
|
|
Total
|
9,968
|
|
|
8,558
|
|
|
10,324
|
|
|
Year Ended December 31,
|
||||
|
2017
|
|
2016
|
|
2015
|
Base salary and directors fees
|
8
|
|
12
|
|
7
|
Short-term performance-related bonus
|
7
|
|
2
|
|
5
|
Post-employment benefits
|
1
|
|
1
|
|
—
|
Share based compensation
|
3
|
|
2
|
|
7
|
•
|
Discount rates – The discount rate is based on several high quality corporate bond indexes and yield curves in the appropriate jurisdictions (rated AA or higher by a recognized rating agency). In countries where there is no deep market in such bonds, the market rates on government bonds are used. Nominal interest rates vary worldwide due to exchange rates and local inflation rates.
|
•
|
Rate of compensation increase – The rate of compensation increase reflects actual experience and the Company’s long-term outlook, including contractually agreed upon wage rate increases for represented hourly employees.
|
•
|
Healthcare cost trend rate – The healthcare cost trend rate is based on historical retiree cost data, near-term healthcare outlook, including appropriate cost control measures implemented by the Company, and industry benchmarks and surveys.
|
•
|
Mortality and retirement rates – Mortality and retirement rates are based on actual and projected plan experience.
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
Pension plan benefits
|
3,067
|
|
|
3,061
|
|
Other post-employment benefits
|
4,140
|
|
|
4,801
|
|
Early retirement benefits
|
280
|
|
|
279
|
|
Defined benefit liabilities
|
7,487
|
|
|
8,141
|
|
Termination benefits
|
143
|
|
|
156
|
|
Total
|
7,630
|
|
|
8,297
|
|
|
Year ended December 31, 2017
|
||||||||||||||||
|
Total
|
|
United States
|
|
Canada
|
|
Brazil
|
|
Europe
|
|
Other
|
||||||
Change in benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Benefit obligation at beginning of the period
|
10,054
|
|
|
3,627
|
|
|
3,053
|
|
|
704
|
|
|
2,582
|
|
|
88
|
|
Current service cost
|
125
|
|
|
32
|
|
|
26
|
|
|
4
|
|
|
60
|
|
|
3
|
|
Interest cost on DBO
|
397
|
|
|
142
|
|
|
119
|
|
|
79
|
|
|
46
|
|
|
11
|
|
Past service cost - Plan amendments
|
14
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Plan participants’ contribution
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
Actuarial (gain) loss
|
323
|
|
|
(28
|
)
|
|
237
|
|
|
40
|
|
|
72
|
|
|
2
|
|
Demographic assumptions
|
(131
|
)
|
|
(130
|
)
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
Financial assumptions
|
418
|
|
|
154
|
|
|
188
|
|
|
22
|
|
|
54
|
|
|
—
|
|
Experience adjustment
|
36
|
|
|
(52
|
)
|
|
48
|
|
|
18
|
|
|
20
|
|
|
2
|
|
Benefits paid
|
(656
|
)
|
|
(265
|
)
|
|
(197
|
)
|
|
(49
|
)
|
|
(130
|
)
|
|
(15
|
)
|
Foreign currency exchange rate differences and other movements
|
575
|
|
|
—
|
|
|
229
|
|
|
(12
|
)
|
|
357
|
|
|
1
|
|
Benefit obligation at end of the period
|
10,835
|
|
|
3,508
|
|
|
3,481
|
|
|
766
|
|
|
2,990
|
|
|
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in plan assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fair value of plan assets at beginning of the period
|
7,048
|
|
|
2,768
|
|
|
2,795
|
|
|
684
|
|
|
777
|
|
|
24
|
|
Interest income on plan assets
|
292
|
|
|
94
|
|
|
107
|
|
|
75
|
|
|
15
|
|
|
1
|
|
Return on plan assets greater/(less) than discount rate
|
468
|
|
|
274
|
|
|
169
|
|
|
16
|
|
|
17
|
|
|
(8
|
)
|
Employer contribution
|
249
|
|
|
117
|
|
|
83
|
|
|
8
|
|
|
41
|
|
|
—
|
|
Plan participants’ contribution
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
Benefits paid
|
(545
|
)
|
|
(260
|
)
|
|
(196
|
)
|
|
(49
|
)
|
|
(37
|
)
|
|
(3
|
)
|
Foreign currency exchange rate differences and other movements
|
307
|
|
|
—
|
|
|
208
|
|
|
(11
|
)
|
|
109
|
|
|
1
|
|
Fair value of plan assets at end of the period
|
7,822
|
|
|
2,993
|
|
|
3,167
|
|
|
723
|
|
|
924
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Present value of the wholly or partly funded obligation
|
(9,352
|
)
|
|
(3,477
|
)
|
|
(3,463
|
)
|
|
(765
|
)
|
|
(1,635
|
)
|
|
(12
|
)
|
Fair value of plan assets
|
7,822
|
|
|
2,993
|
|
|
3,167
|
|
|
723
|
|
|
924
|
|
|
15
|
|
Net present value of the wholly or partly funded obligation
|
(1,530
|
)
|
|
(484
|
)
|
|
(296
|
)
|
|
(42
|
)
|
|
(711
|
)
|
|
3
|
|
Present value of the unfunded obligation
|
(1,483
|
)
|
|
(31
|
)
|
|
(18
|
)
|
|
(1
|
)
|
|
(1,355
|
)
|
|
(78
|
)
|
Prepaid due to unrecoverable surpluses
|
(34
|
)
|
|
—
|
|
|
(23
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(2
|
)
|
Net amount recognized
|
(3,047
|
)
|
|
(515
|
)
|
|
(337
|
)
|
|
(46
|
)
|
|
(2,072
|
)
|
|
(77
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net assets related to funded obligations
|
20
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
3
|
|
|
—
|
|
Recognized liabilities
|
(3,067
|
)
|
|
(515
|
)
|
|
(354
|
)
|
|
(46
|
)
|
|
(2,075
|
)
|
|
(77
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in unrecoverable surplus
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrecoverable surplus at beginning of the period
|
(34
|
)
|
|
—
|
|
|
(18
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
(9
|
)
|
Interest cost on unrecoverable surplus
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Change in unrecoverable surplus in excess of interest
|
2
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(2
|
)
|
|
7
|
|
Exchange rates changes
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Unrecoverable surplus at end of the period
|
(34
|
)
|
|
—
|
|
|
(23
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
Year ended December 31, 2016
|
||||||||||||||||
|
Total
|
|
United States
|
|
Canada
|
|
Brazil
|
|
Europe
|
|
Other
|
||||||
Change in benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Benefit obligation at beginning of the period
|
9,883
|
|
|
3,623
|
|
|
2,928
|
|
|
495
|
|
|
2,601
|
|
|
236
|
|
Current service cost
|
112
|
|
|
31
|
|
|
25
|
|
|
2
|
|
|
50
|
|
|
4
|
|
Interest cost on DBO
|
406
|
|
|
151
|
|
|
125
|
|
|
66
|
|
|
52
|
|
|
12
|
|
Past service cost - Plan amendments
|
(80
|
)
|
|
12
|
|
|
4
|
|
|
—
|
|
|
(96
|
)
|
|
—
|
|
Plan participants’ contribution
|
4
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
—
|
|
Curtailments and settlements
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(6
|
)
|
Actuarial (gain) loss
|
388
|
|
|
71
|
|
|
65
|
|
|
82
|
|
|
170
|
|
|
—
|
|
Demographic assumptions
|
(12
|
)
|
|
(21
|
)
|
|
1
|
|
|
—
|
|
|
8
|
|
|
—
|
|
Financial assumptions
|
370
|
|
|
80
|
|
|
23
|
|
|
96
|
|
|
170
|
|
|
1
|
|
Experience adjustment
|
30
|
|
|
12
|
|
|
41
|
|
|
(14
|
)
|
|
(8
|
)
|
|
(1
|
)
|
Benefits paid
|
(633
|
)
|
|
(261
|
)
|
|
(186
|
)
|
|
(42
|
)
|
|
(129
|
)
|
|
(15
|
)
|
Foreign currency exchange rate differences and other movements
1
|
(16
|
)
|
|
—
|
|
|
91
|
|
|
100
|
|
|
(64
|
)
|
|
(143
|
)
|
Benefit obligation at end of the period
|
10,054
|
|
|
3,627
|
|
|
3,053
|
|
|
704
|
|
|
2,582
|
|
|
88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in plan assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fair value of plan assets at beginning of the period
|
6,828
|
|
|
2,795
|
|
|
2,633
|
|
|
498
|
|
|
753
|
|
|
149
|
|
Interest income on plan assets
|
308
|
|
|
104
|
|
|
111
|
|
|
72
|
|
|
17
|
|
|
4
|
|
Return on plan assets greater/(less) than discount rate
|
273
|
|
|
126
|
|
|
91
|
|
|
30
|
|
|
24
|
|
|
2
|
|
Employer contribution
|
124
|
|
|
16
|
|
|
64
|
|
|
21
|
|
|
23
|
|
|
—
|
|
Plan participants’ contribution
|
4
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
—
|
|
Settlements
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
Benefits paid
|
(529
|
)
|
|
(261
|
)
|
|
(185
|
)
|
|
(42
|
)
|
|
(38
|
)
|
|
(3
|
)
|
Foreign currency exchange rate differences and other movements
1
|
44
|
|
|
(12
|
)
|
|
80
|
|
|
104
|
|
|
—
|
|
|
(128
|
)
|
Fair value of plan assets at end of the period
|
7,048
|
|
|
2,768
|
|
|
2,795
|
|
|
684
|
|
|
777
|
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Present value of the wholly or partly funded obligation
|
(8,730
|
)
|
|
(3,593
|
)
|
|
(3,040
|
)
|
|
(703
|
)
|
|
(1,379
|
)
|
|
(15
|
)
|
Fair value of plan assets
|
7,048
|
|
|
2,768
|
|
|
2,795
|
|
|
684
|
|
|
777
|
|
|
24
|
|
Net present value of the wholly or partly funded obligation
|
(1,682
|
)
|
|
(825
|
)
|
|
(245
|
)
|
|
(19
|
)
|
|
(602
|
)
|
|
9
|
|
Present value of the unfunded obligation
|
(1,324
|
)
|
|
(34
|
)
|
|
(13
|
)
|
|
(1
|
)
|
|
(1,203
|
)
|
|
(73
|
)
|
Prepaid due to unrecoverable surpluses
|
(34
|
)
|
|
—
|
|
|
(18
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
(9
|
)
|
Net amount recognized
|
(3,040
|
)
|
|
(859
|
)
|
|
(276
|
)
|
|
(23
|
)
|
|
(1,809
|
)
|
|
(73
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net assets related to funded obligations
|
21
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
3
|
|
|
—
|
|
Recognized liabilities
|
(3,061
|
)
|
|
(859
|
)
|
|
(294
|
)
|
|
(23
|
)
|
|
(1,812
|
)
|
|
(73
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in unrecoverable surplus
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrecoverable surplus at beginning of the period
|
(80
|
)
|
|
—
|
|
|
(21
|
)
|
|
(53
|
)
|
|
(3
|
)
|
|
(3
|
)
|
Interest cost on unrecoverable surplus
|
(10
|
)
|
|
—
|
|
|
(1
|
)
|
|
(8
|
)
|
|
—
|
|
|
(1
|
)
|
Change in unrecoverable surplus in excess of interest
|
67
|
|
|
—
|
|
|
5
|
|
|
67
|
|
|
(1
|
)
|
|
(4
|
)
|
Exchange rates changes
|
(11
|
)
|
|
—
|
|
|
(1
|
)
|
|
(9
|
)
|
|
—
|
|
|
(1
|
)
|
Unrecoverable surplus at end of the period
|
(34
|
)
|
|
—
|
|
|
(18
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
(9
|
)
|
1.
|
Others: includes the derecognition of the benefit obligation and plan assets in ArcelorMittal Point Lisas for
136
and
127
, respectively.
|
|
Year ended December 31, 2017
|
||||||||||||||||
Net periodic pension cost (benefit)
|
Total
|
|
United States
|
|
Canada
|
|
Brazil
|
|
Europe
|
|
Others
|
||||||
Current service cost
|
125
|
|
|
32
|
|
|
26
|
|
|
4
|
|
|
60
|
|
|
3
|
|
Past service cost - Plan amendments
|
14
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Net interest cost/(income) on net DB liability/(asset)
|
106
|
|
|
48
|
|
|
13
|
|
|
4
|
|
|
31
|
|
|
10
|
|
Total
|
245
|
|
|
80
|
|
|
52
|
|
|
8
|
|
|
92
|
|
|
13
|
|
|
Year ended December 31, 2016
|
||||||||||||||||
Net periodic pension cost (benefit)
|
Total
|
|
United States
|
|
Canada
|
|
Brazil
|
|
Europe
|
|
Others
|
||||||
Current service cost
|
112
|
|
|
31
|
|
|
25
|
|
|
2
|
|
|
50
|
|
|
4
|
|
Past service cost - Plan amendments
|
(80
|
)
|
|
12
|
|
|
4
|
|
|
—
|
|
|
(96
|
)
|
|
—
|
|
Past service cost - Curtailments
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
Net interest cost/(income) on net DB liability/(asset)
|
108
|
|
|
47
|
|
|
15
|
|
|
2
|
|
|
35
|
|
|
9
|
|
Total
|
134
|
|
|
90
|
|
|
44
|
|
|
4
|
|
|
(11
|
)
|
|
7
|
|
|
Year ended December 31, 2015
|
||||||||||||||||
Net periodic pension cost (benefit)
|
Total
|
|
United States
|
|
Canada
|
|
Brazil
|
|
Europe
|
|
Others
|
||||||
Current service cost
|
121
|
|
|
36
|
|
|
31
|
|
|
2
|
|
|
44
|
|
|
8
|
|
Past service cost - Plan amendments
|
4
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
1
|
|
Past service cost - Curtailments
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
Net interest cost/(income) on net DB liability/(asset)
|
117
|
|
|
45
|
|
|
18
|
|
|
7
|
|
|
37
|
|
|
10
|
|
Total
|
241
|
|
|
81
|
|
|
50
|
|
|
9
|
|
|
82
|
|
|
19
|
|
|
Year ended December 31, 2017
|
|||||||||||||
|
Total
|
|
United States
|
|
Canada
|
|
Europe
|
|
Others
|
|||||
Change in benefit obligation
|
|
|
|
|
|
|
|
|
|
|||||
Benefit obligation at beginning of the period
|
5,400
|
|
|
4,183
|
|
|
592
|
|
|
492
|
|
|
133
|
|
Current service cost
|
100
|
|
|
58
|
|
|
9
|
|
|
26
|
|
|
7
|
|
Interest cost on DBO
|
226
|
|
|
181
|
|
|
23
|
|
|
11
|
|
|
11
|
|
Past service cost - Plan amendments
|
4
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
1
|
|
Plan participants’ contribution
|
29
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Actuarial (gain) loss
|
(942
|
)
|
|
(1,005
|
)
|
|
45
|
|
|
7
|
|
|
11
|
|
Demographic assumptions
|
(153
|
)
|
|
(168
|
)
|
|
2
|
|
|
3
|
|
|
10
|
|
Financial assumptions
|
(680
|
)
|
|
(728
|
)
|
|
40
|
|
|
9
|
|
|
(1
|
)
|
Experience adjustment
|
(109
|
)
|
|
(109
|
)
|
|
3
|
|
|
(5
|
)
|
|
2
|
|
Benefits paid
|
(258
|
)
|
|
(177
|
)
|
|
(32
|
)
|
|
(42
|
)
|
|
(7
|
)
|
Foreign currency exchange rate differences and other movements
|
127
|
|
|
—
|
|
|
41
|
|
|
83
|
|
|
3
|
|
Benefit obligation at end of the period
|
4,686
|
|
|
3,269
|
|
|
679
|
|
|
579
|
|
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Change in plan assets
|
|
|
|
|
|
|
|
|
|
|||||
Fair value of plan assets at beginning of the period
|
599
|
|
|
592
|
|
|
—
|
|
|
7
|
|
|
—
|
|
Interest income on plan assets
|
22
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Return on plan assets greater/(less) than discount rate
|
17
|
|
|
15
|
|
|
—
|
|
|
2
|
|
|
—
|
|
Employer contribution
|
(44
|
)
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Plan participants’ contribution
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Benefits paid
|
(61
|
)
|
|
(59
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
Foreign currency exchange rate differences and other movements
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Fair value of plan assets at end of the period
|
546
|
|
|
538
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Present value of the wholly or partly funded obligation
|
(757
|
)
|
|
(689
|
)
|
|
—
|
|
|
(68
|
)
|
|
—
|
|
Fair value of plan assets
|
546
|
|
|
538
|
|
|
—
|
|
|
8
|
|
|
—
|
|
Net present value of the wholly or partly funded obligation
|
(211
|
)
|
|
(151
|
)
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
Present value of the unfunded obligation
|
(3,929
|
)
|
|
(2,580
|
)
|
|
(679
|
)
|
|
(511
|
)
|
|
(159
|
)
|
Net amount recognized
|
(4,140
|
)
|
|
(2,731
|
)
|
|
(679
|
)
|
|
(571
|
)
|
|
(159
|
)
|
|
Year ended December 31, 2016
|
|||||||||||||
|
Total
|
|
United States
|
|
Canada
|
|
Europe
|
|
Others
|
|||||
Change in benefit obligation
|
|
|
|
|
|
|
|
|
|
|||||
Benefit obligation at beginning of the period
|
6,251
|
|
|
4,995
|
|
|
573
|
|
|
516
|
|
|
167
|
|
Current service cost
|
100
|
|
|
59
|
|
|
7
|
|
|
27
|
|
|
7
|
|
Interest cost on DBO
|
249
|
|
|
203
|
|
|
25
|
|
|
12
|
|
|
9
|
|
Past service cost - Plan amendments
|
(851
|
)
|
|
(844
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
—
|
|
Plan participants’ contribution
|
18
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Actuarial (gain) loss
|
(48
|
)
|
|
(62
|
)
|
|
1
|
|
|
8
|
|
|
5
|
|
Demographic assumptions
|
(184
|
)
|
|
(154
|
)
|
|
(32
|
)
|
|
—
|
|
|
2
|
|
Financial assumptions
|
189
|
|
|
160
|
|
|
23
|
|
|
14
|
|
|
(8
|
)
|
Experience adjustment
|
(53
|
)
|
|
(68
|
)
|
|
10
|
|
|
(6
|
)
|
|
11
|
|
Benefits paid
|
(323
|
)
|
|
(240
|
)
|
|
(31
|
)
|
|
(40
|
)
|
|
(12
|
)
|
Foreign currency exchange rate differences and other movements
1
|
4
|
|
|
54
|
|
|
20
|
|
|
(27
|
)
|
|
(43
|
)
|
Benefit obligation at end of the period
|
5,400
|
|
|
4,183
|
|
|
592
|
|
|
492
|
|
|
133
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Change in plan assets
|
|
|
|
|
|
|
|
|
|
|||||
Fair value of plan assets at beginning of the period
|
706
|
|
|
698
|
|
|
—
|
|
|
8
|
|
|
—
|
|
Interest income on plan assets
|
26
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Return on plan assets greater/(less) than discount rate
|
5
|
|
|
4
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Employer contribution
|
86
|
|
|
86
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Plan participants’ contribution
|
18
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Benefits paid
|
(242
|
)
|
|
(240
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
Fair value of plan assets at end of the period
|
599
|
|
|
592
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Present value of the wholly or partly funded obligation
|
(821
|
)
|
|
(760
|
)
|
|
—
|
|
|
(61
|
)
|
|
—
|
|
Fair value of plan assets
|
599
|
|
|
592
|
|
|
—
|
|
|
7
|
|
|
—
|
|
Net present value of the wholly or partly funded obligation
|
(222
|
)
|
|
(168
|
)
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
Present value of the unfunded obligation
|
(4,579
|
)
|
|
(3,423
|
)
|
|
(592
|
)
|
|
(431
|
)
|
|
(133
|
)
|
Net amount recognized
|
(4,801
|
)
|
|
(3,591
|
)
|
|
(592
|
)
|
|
(485
|
)
|
|
(133
|
)
|
1.
|
Includes a
53
increase in benefit obligation retained by the Company in respect of Steelton, which has been classified as held for sale at December 31, 2016 (see note 2.3.2).
|
|
Year ended December 31, 2017
|
|||||||||||||
Components of net periodic OPEB cost (benefit)
|
Total
|
|
United States
|
|
Canada
|
|
Europe
|
|
Others
|
|||||
Current service cost
|
100
|
|
|
58
|
|
|
9
|
|
|
26
|
|
|
7
|
|
Past service cost - Plan amendments
|
4
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
1
|
|
Net interest cost/(income) on net DB liability/(asset)
|
204
|
|
|
159
|
|
|
23
|
|
|
11
|
|
|
11
|
|
Actuarial (gains)/losses recognized during the year
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
Total
|
310
|
|
|
217
|
|
|
33
|
|
|
41
|
|
|
19
|
|
|
Year ended December 31, 2016
|
|||||||||||||
Components of net periodic OPEB cost (benefit)
|
Total
|
|
United States
|
|
Canada
|
|
Europe
|
|
Others
|
|||||
Current service cost
|
100
|
|
|
59
|
|
|
7
|
|
|
27
|
|
|
7
|
|
Past service cost - Plan amendments
|
(851
|
)
|
|
(844
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
—
|
|
Net interest cost/(income) on net DB liability/(asset)
|
223
|
|
|
177
|
|
|
25
|
|
|
12
|
|
|
9
|
|
Actuarial (gains)/losses recognized during the year
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Total
|
(527
|
)
|
|
(608
|
)
|
|
29
|
|
|
36
|
|
|
16
|
|
|
Year ended December 31, 2015
|
|||||||||||||
Components of net periodic OPEB cost (benefit)
|
Total
|
|
United States
|
|
Canada
|
|
Europe
|
|
Others
|
|||||
Current service cost
|
96
|
|
|
50
|
|
|
9
|
|
|
28
|
|
|
9
|
|
Past service cost - Plan amendments
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
Cost of termination benefits
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net interest cost/(income) on net DB liability/(asset)
|
220
|
|
|
169
|
|
|
26
|
|
|
11
|
|
|
14
|
|
Actuarial (gains)/losses recognized during the year
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
Total
|
317
|
|
|
225
|
|
|
33
|
|
|
36
|
|
|
23
|
|
|
Year ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Net periodic pension cost
|
245
|
|
|
134
|
|
|
241
|
|
Net periodic OPEB cost
|
310
|
|
|
(527
|
)
|
|
317
|
|
Total
|
555
|
|
|
(393
|
)
|
|
558
|
|
|
|
|
|
|
|
|||
Cost of sales
|
220
|
|
|
(725
|
)
|
|
197
|
|
Selling, general and administrative expenses
|
23
|
|
|
—
|
|
|
27
|
|
Financing costs - net
|
312
|
|
|
332
|
|
|
334
|
|
Total
|
555
|
|
|
(393
|
)
|
|
558
|
|
|
December 31, 2017
|
|||||||||||||
|
United States
|
|
Canada
|
|
Brazil
|
|
Europe
|
|
Others
|
|||||
Equity Securities
|
53
|
%
|
|
56
|
%
|
|
—
|
|
|
3
|
%
|
|
41
|
%
|
- Asset classes that have a quoted market price in an active market
|
26
|
%
|
|
47
|
%
|
|
—
|
|
|
3
|
%
|
|
41
|
%
|
- Asset classes that do not have a quoted market price in an active market
|
27
|
%
|
|
9
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
Fixed Income Securities (including cash)
|
34
|
%
|
|
42
|
%
|
|
97
|
%
|
|
71
|
%
|
|
49
|
%
|
- Asset classes that have a quoted market price in an active market
|
4
|
%
|
|
33
|
%
|
|
97
|
%
|
|
67
|
%
|
|
49
|
%
|
- Asset classes that do not have a quoted market price in an active market
|
30
|
%
|
|
9
|
%
|
|
—
|
|
|
4
|
%
|
|
—
|
|
Real Estate
|
—
|
|
|
2
|
%
|
|
1
|
%
|
|
—
|
|
|
2
|
%
|
- Asset classes that have a quoted market price in an active market
|
—
|
|
|
—
|
|
|
1
|
%
|
|
—
|
|
|
2
|
%
|
- Asset classes that do not have a quoted market price in an active market
|
—
|
|
|
2
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
Other
|
13
|
%
|
|
—
|
|
|
2
|
%
|
|
26
|
%
|
|
8
|
%
|
- Asset classes that have a quoted market price in an active market
|
4
|
%
|
|
—
|
|
|
2
|
%
|
|
3
|
%
|
|
8
|
%
|
- Asset classes that do not have a quoted market price in an active market
|
9
|
%
|
|
—
|
|
|
—
|
|
|
23
|
%
|
|
—
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
December 31, 2016
|
|||||||||||||
|
United States
|
|
Canada
|
|
Brazil
|
|
Europe
|
|
Others
|
|||||
Equity Securities
|
50
|
%
|
|
53
|
%
|
|
—
|
|
|
3
|
%
|
|
40
|
%
|
- Asset classes that have a quoted market price in an active market
|
25
|
%
|
|
46
|
%
|
|
—
|
|
|
3
|
%
|
|
40
|
%
|
- Asset classes that do not have a quoted market price in an active market
|
25
|
%
|
|
7
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
Fixed Income Securities (including cash)
|
37
|
%
|
|
47
|
%
|
|
98
|
%
|
|
72
|
%
|
|
50
|
%
|
- Asset classes that have a quoted market price in an active market
|
2
|
%
|
|
35
|
%
|
|
98
|
%
|
|
71
|
%
|
|
50
|
%
|
- Asset classes that do not have a quoted market price in an active market
|
35
|
%
|
|
12
|
%
|
|
—
|
|
|
1
|
%
|
|
—
|
|
Real Estate
|
4
|
%
|
|
—
|
|
|
1
|
%
|
|
—
|
|
|
2
|
%
|
- Asset classes that have a quoted market price in an active market
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
%
|
- Asset classes that do not have a quoted market price in an active market
|
4
|
%
|
|
—
|
|
|
1
|
%
|
|
—
|
|
|
—
|
|
Other
|
9
|
%
|
|
—
|
|
|
1
|
%
|
|
25
|
%
|
|
8
|
%
|
- Asset classes that have a quoted market price in an active market
|
—
|
|
|
—
|
|
|
1
|
%
|
|
5
|
%
|
|
8
|
%
|
- Asset classes that do not have a quoted market price in an active market
|
9
|
%
|
|
—
|
|
|
—
|
|
|
20
|
%
|
|
—
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
December 31, 2017
|
||||||||||
|
United States
|
|
Canada
|
|
Brazil
|
|
Europe
|
||||
Equity Securities
|
37
|
%
|
|
46
|
%
|
|
1
|
%
|
|
3
|
%
|
Fixed Income Securities (including cash)
|
43
|
%
|
|
41
|
%
|
|
93
|
%
|
|
71
|
%
|
Real Estate
|
3
|
%
|
|
8
|
%
|
|
3
|
%
|
|
—
|
%
|
Other
|
17
|
%
|
|
5
|
%
|
|
3
|
%
|
|
26
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Pension Plans
|
|
Other Post-employment Benefits
|
||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
Discount rate
|
|
|
|
|
|
|
|
|
|
|
|
Range
|
1.50% - 15.00%
|
|
1.60% - 16.00%
|
|
2.05% - 17.00%
|
|
1.30% - 7.65%
|
|
0.90% - 7.65%
|
|
0.90% - 30.00%
|
Weighted average
|
3.45%
|
|
3.92%
|
|
4.21%
|
|
3.60%
|
|
4.19%
|
|
4.49%
|
Rate of compensation increase
|
|
|
|
|
|
|
|
|
|
|
|
Range
|
1.80% - 9.00%
|
|
1.80% - 10.00%
|
|
2.00% - 11.00%
|
|
2.00% - 4.50%
|
|
2.00% - 32.00%
|
|
2.00% - 27.00%
|
Weighted average
|
2.81%
|
|
3.11%
|
|
3.11%
|
|
3.32%
|
|
3.38%
|
|
3.98%
|
|
Other Post-employment Benefits
|
||||
|
2017
|
|
2016
|
|
2015
|
Healthcare cost trend rate assumed
|
|
|
|
|
|
Range
|
1.80% - 5.00%
|
|
1.80% - 5.60%
|
|
2.00% - 7.00%
|
Weighted average
|
4.48%
|
|
4.51%
|
|
4.75%
|
|
Effect on 2018 Pre-Tax Pension Expense (sum of service cost and interest cost)
|
|
Effect of December 31, 2017 DBO
|
Change in assumption
|
|
|
|
100 basis points decrease in discount rate
|
(50)
|
|
1,333
|
100 basis points increase in discount rate
|
40
|
|
(1,095)
|
100 basis points decrease in rate of compensation
|
(14)
|
|
(180)
|
100 basis points increase in rate of compensation
|
14
|
|
177
|
1 year increase of the expected life of the beneficiaries
|
12
|
|
310
|
|
Effect on 2018 Pre-Tax OPEB Expense (sum of service cost and interest cost)
|
|
Effect of December 31, 2017 DBO
|
Change in assumption
|
|
|
|
100 basis points decrease in discount rate
|
(3)
|
|
697
|
100 basis points increase in discount rate
|
2
|
|
(553)
|
100 basis points decrease in healthcare cost trend rate
|
(31)
|
|
(469)
|
100 basis points increase in healthcare cost trend rate
|
40
|
|
575
|
1 year increase of the expected life of the beneficiaries
|
8
|
|
159
|
Date of grant
|
Exercise prices
(per option) |
August 2010
|
$91.98
|
August 2009
|
109.14
|
November 2008
|
63.42
|
August 2008
|
235.32
|
|
Number of Options
|
|
Range of Exercise Prices
(per option) |
|
Weighted Average Exercise Price
(per option) |
|
Outstanding, December 31, 2014
|
6,692,533
|
|
|
63.42 – 235.32
|
|
144.79
|
Expired
|
(961,733
|
)
|
|
81.93 – 235.32
|
|
125.26
|
Outstanding, December 31, 2015
|
5,730,800
|
|
|
63.42 – 235.32
|
|
148.06
|
Expired
|
(1,048,266
|
)
|
|
91.98 – 235.32
|
|
125.17
|
Outstanding, December 31, 2016
|
4,682,534
|
|
|
63.42 – 235.32
|
|
153.19
|
Expired
|
(1,397,659
|
)
|
|
63.42 – 235.32
|
|
170.40
|
Outstanding, December 31, 2017
|
3,284,875
|
|
|
63.42 – 235.32
|
|
145.86
|
|
|
|
|
|
|
|
Exercisable, December 31, 2015
|
5,730,800
|
|
|
63.42 – 235.32
|
|
148.06
|
Exercisable, December 31, 2016
|
4,682,534
|
|
|
63.42 – 235.32
|
|
153.19
|
Exercisable, December 31, 2017
|
3,284,875
|
|
|
63.42 – 235.32
|
|
145.86
|
Options Outstanding
|
||||||||||
Exercise Prices
(per option) |
|
Number of
options |
|
Weighted average contractual life
(in years) |
|
Options exercisable (number of options)
|
|
Maturity
|
||
$91.98
|
|
1,117,757
|
|
|
2.59
|
|
1,117,757
|
|
|
August 3, 2020
|
109.14
|
|
1,058,014
|
|
|
1.59
|
|
1,058,014
|
|
|
August 4, 2019
|
63.42
|
|
862
|
|
|
0.86
|
|
862
|
|
|
November 10, 2018
|
235.32
|
|
1,108,242
|
|
|
0.59
|
|
1,108,242
|
|
|
August 5, 2018
|
$63.42 – $235.32
|
|
3,284,875
|
|
|
1.60
|
|
3,284,875
|
|
|
|
|
|
CEO Office
|
|
Executive Officers and other qualifying employees
|
||||||
2017 Grant
|
l
|
PSUs with a three-year performance period
|
l
|
PSUs with a three-year performance period
|
||||||
l
|
Performance criteria: 50% TSR (½ vs. S&P 500 and ½ vs. peer group) and 50% EPS vs. peer group
|
l
|
Performance criteria: TSR and Gap to competition in some areas
|
|||||||
l
|
Value at grant: 100% of base salary for the CEO and the CFO
|
l
|
Vesting conditions:
|
|||||||
l
|
Vesting conditions:
|
|
|
|||||||
|
|
Threshold
|
Target
|
|
|
Threshold
|
Target
|
|||
|
TSR/EPS vs. peer group
|
100% median
|
≥120% median
|
|
TSR vs. peer group
|
100% median
50% vesting |
≥120% median
100% vesting |
|||
|
TSR vs. S&P 500
|
Performance equal to Index
|
≥Performance equal to Index + 2% outperformance
|
|
Gap to competition (where applicable)
|
-
|
100% target
100% vesting |
|||
|
Vesting percentage
|
50%
|
100%
|
|
|
|
|
CEO Office
|
|
Executive Officers and other qualifying employees
|
||||||
2014 Grant
|
l
|
PSUs with a three-year performance period
|
l
|
RSUs with a three-year vesting period (2014 grant vested in December 2017)
|
||||||
l
|
Performance criteria: 50% TSR (½ vs. S&P 500 and ½ vs. peer group) and 50% EPS vs. peer group
|
l
|
PSUs with a three-year performance period
|
|||||||
l
|
Value at grant: 100% of base salary for the CEO and 80% for the CFO
|
l
|
Performance target: mainly ROCE and mining volume plan for the Mining segment
|
|||||||
l
|
Vesting conditions:
|
l
|
One PSU can give right to 0 shares up to 1.5 shares
|
|||||||
|
|
l
|
Vesting conditions:
|
|||||||
|
|
Threshold
|
Target
|
Stretch
|
|
|
Threshold
|
Target
|
Stretch
|
|
|
TSR/EPS vs. peer group
|
80% median
|
100% median
|
≥120% median
|
|
Performance
|
80%
|
100%
|
≥120%
|
|
|
TSR vs. S&P 500
|
Performance equal to 80% of Index
|
Performance equal to Index
|
≥Performance equal to Index + 2% outperformance
|
|
Vesting
|
50%
|
100%
|
150%
|
|
|
Vesting percentage
|
50%
|
100%
|
150%
|
|
|
|
|
|
|
2015 Grant
|
|
Same as in 2014
|
|
Same as in 2014
|
||||||
2016 Special Grant
|
l
|
PSUs with a five-year performance period, 50% vesting after three-year performance period and 50% after additional two-year performance period
|
l
|
PSUs with a five-year performance period, 50% vesting after three-year performance period and 50% after additional two-year performance period
|
||||||
l
|
Performance criteria: 50% TSR (½ vs. S&P 500 and ½ vs. peer group) and 50% EPS vs. peer group
|
l
|
Performance criteria: ROCE and Gap to competition in some areas
one target grant: a share will vest if performance is met at target one over-performance grant: a share will vest if performance exceeds 120% |
|||||||
l
|
Value at grant: 150% of base salary for the CEO and the CFO
|
l
|
Vesting conditions:
|
|||||||
l
|
Vesting conditions:
|
|
|
|||||||
|
|
Threshold
|
Target
|
|
Performance
|
100%
|
≥120%
|
|||
|
TSR/EPS vs. peer group
|
100% median
|
≥120% median
|
|
Target award vesting
|
100%
|
100%
|
|||
|
TSR vs. S&P 500
|
Performance equal to Index
|
≥Performance equal to Index + 2% outperformance
|
|
Overperformance award (=20% of target award)
|
-
|
100%
|
|||
|
Vesting percentage
|
50%
|
100%
|
|
|
At Grant date
|
|
Number of shares issued as of December 31, 2017
|
|||||||||||||||||||
Grant date
|
|
Type of plan
|
|
Number of shares
|
|
Number of beneficiaries
|
|
Maturity
|
|
Fair value
per share |
|
Shares outstanding
|
|
Shares exited
|
|
Shares forfeited
|
|||||
December 20, 2017
|
|
PSU
|
|
1,081,447
|
|
|
527
|
|
|
January 1, 2021
|
|
18.42
|
|
1,081,447
|
|
|
—
|
|
|
—
|
|
December 20, 2017
|
|
CEO Office
|
|
90,084
|
|
|
2
|
|
|
January 1, 2021
|
|
22.85
|
|
90,084
|
|
|
—
|
|
|
—
|
|
June 30, 2016
|
|
PSU II
|
|
3,472,355
|
|
|
554
|
|
|
January 1, 2021
|
|
13.17
|
|
3,238,930
|
|
|
—
|
|
|
233,425
|
|
June 30, 2016
|
|
CEO PSU II
|
|
153,268
|
|
|
2
|
|
|
January 1, 2022
|
|
16.62
|
|
153,268
|
|
|
—
|
|
|
—
|
|
June 30, 2016
|
|
PSU I
|
|
3,472,355
|
|
|
554
|
|
|
January 1, 2019
|
|
13.74
|
|
3,238,930
|
|
|
—
|
|
|
233,425
|
|
June 30, 2016
|
|
CEO PSU I
|
|
153,268
|
|
|
2
|
|
|
January 1, 2020
|
|
10.68
|
|
153,268
|
|
|
—
|
|
|
—
|
|
December 18, 2015
|
|
PSU
|
|
295,935
|
|
|
322
|
|
|
January 1, 2019
|
|
11.49
|
|
246,661
|
|
|
—
|
|
|
49,274
|
|
December 18, 2015
|
|
RSU
|
|
368,534
|
|
|
576
|
|
|
December 18, 2018
|
|
11.49
|
|
306,005
|
|
|
3,138
|
|
|
59,391
|
|
June 30, 2015
|
|
GMB PSU
|
|
154,767
|
|
|
4
|
|
|
June 30, 2018
|
|
25.59
|
|
154,767
|
|
|
—
|
|
|
—
|
|
December 17, 2014
|
|
PSU
|
|
326,678
|
|
|
353
|
|
|
January 1, 2018
|
|
30.84
|
|
239,481
|
|
|
—
|
|
|
87,197
|
|
Total
|
|
|
|
9,568,691
|
|
|
|
|
|
|
$10.68 – $30.84
|
|
8,902,841
|
|
|
3,138
|
|
|
662,712
|
|
|
RSUs
|
|
PSUs
|
||||||
|
Number of shares
|
|
Fair value per share
|
|
Number of shares
|
|
Fair value per share
|
||
Outstanding, December 31, 2014
|
1,136,761
|
|
|
36.19
|
|
1,086,834
|
|
|
42.29
|
Granted
|
368,536
|
|
|
11.49
|
|
450,702
|
|
|
16.33
|
Exited
|
(107,544
|
)
|
|
42.90
|
|
(8,239
|
)
|
|
50.61
|
Forfeited
|
(77,099
|
)
|
|
35.91
|
|
(158,622
|
)
|
|
45.59
|
Outstanding, December 31, 2015
|
1,320,654
|
|
|
28.78
|
|
1,370,675
|
|
|
33.32
|
Granted
1
|
—
|
|
|
—
|
|
7,252,814
|
|
|
13.46
|
Exited
|
(564,679
|
)
|
|
38.24
|
|
(19,816
|
)
|
|
37.11
|
Forfeited
|
(105,721
|
)
|
|
26.12
|
|
(564,179
|
)
|
|
37.76
|
Outstanding, December 31, 2016
|
650,254
|
|
|
21.00
|
|
8,039,494
|
|
|
15.08
|
Granted
1
|
—
|
|
|
—
|
|
1,199,338
|
|
|
19.25
|
Exited
|
(303,550
|
)
|
|
30.69
|
|
(204,855
|
)
|
|
43.34
|
Forfeited
|
(40,699
|
)
|
|
20.32
|
|
(437,141
|
)
|
|
18.33
|
Outstanding, December 31, 2017
|
306,005
|
|
|
11.49
|
|
8,596,836
|
|
|
14.83
|
1.
|
Including
27,807
over-performance shares granted for the targets achievement of the PSU grant September 27, 2013 (
1,567
over-performance shares for the PSU grant March 29, 2013
in 2016).
|
|
Balance at December 31, 2016
|
|
Additions
1
|
|
Deductions/
Payments |
|
|
Effects of foreign exchange and other movements
|
|
|
Balance at December 31, 2017
|
|||||
Environmental (see note 8.2)
|
745
|
|
|
64
|
|
|
(57
|
)
|
|
|
63
|
|
2
|
|
815
|
|
Asset retirement obligations (see note 8.2)
|
358
|
|
|
60
|
|
|
(9
|
)
|
|
|
18
|
|
|
|
427
|
|
Site restoration
|
43
|
|
|
—
|
|
|
(9
|
)
|
|
|
6
|
|
|
|
40
|
|
Staff related obligations
|
168
|
|
|
48
|
|
|
(41
|
)
|
|
|
8
|
|
|
|
183
|
|
Voluntary separation plans
|
79
|
|
|
22
|
|
|
(44
|
)
|
|
|
22
|
|
|
|
79
|
|
Litigation and other (see note 8.2)
|
413
|
|
|
64
|
|
|
(173
|
)
|
|
|
24
|
|
|
|
328
|
|
Tax claims
|
211
|
|
|
11
|
|
|
(109
|
)
|
|
|
13
|
|
|
|
126
|
|
Other legal claims
|
202
|
|
|
53
|
|
|
(64
|
)
|
|
|
11
|
|
|
|
202
|
|
Commercial agreements and onerous contracts
|
26
|
|
|
18
|
|
|
(22
|
)
|
|
|
2
|
|
|
|
24
|
|
Other
|
115
|
|
|
39
|
|
|
(37
|
)
|
|
|
9
|
|
|
|
126
|
|
|
1,947
|
|
|
315
|
|
|
(392
|
)
|
|
|
152
|
|
|
|
2,022
|
|
Short-term provisions
|
426
|
|
|
|
|
|
|
|
|
|
|
410
|
|
|||
Long-term provisions
|
1,521
|
|
|
|
|
|
|
|
|
|
|
1,612
|
|
|||
|
1,947
|
|
|
|
|
|
|
|
|
|
|
2,022
|
|
|
Balance at December 31, 2015
|
|
Additions
1
|
|
Deductions/
Payments |
|
|
Effects of foreign exchange and other movements
|
|
|
Balance at December 31, 2016
|
|||||
Environmental (see note 8.2)
|
697
|
|
|
108
|
|
|
(65
|
)
|
|
|
5
|
|
|
|
745
|
|
Asset retirement obligations (see note 8.2)
|
297
|
|
|
70
|
|
|
(4
|
)
|
|
|
(5
|
)
|
|
|
358
|
|
Site restoration
|
64
|
|
|
8
|
|
|
(20
|
)
|
|
|
(9
|
)
|
|
|
43
|
|
Staff related obligations
|
167
|
|
|
48
|
|
|
(63
|
)
|
|
|
16
|
|
|
|
168
|
|
Voluntary separation plans
|
97
|
|
|
25
|
|
|
(68
|
)
|
|
|
25
|
|
|
|
79
|
|
Litigation and other (see note 8.2)
|
463
|
|
|
66
|
|
|
(71
|
)
|
|
|
(45
|
)
|
|
|
413
|
|
Tax claims
|
189
|
|
|
20
|
|
|
(22
|
)
|
|
|
24
|
|
|
|
211
|
|
Other legal claims
|
269
|
|
|
46
|
|
|
(44
|
)
|
|
|
(69
|
)
|
3
|
|
202
|
|
Other unasserted claims
|
5
|
|
|
—
|
|
|
(5
|
)
|
|
|
—
|
|
|
|
—
|
|
Commercial agreements and onerous contracts
|
273
|
|
|
18
|
|
|
(254
|
)
|
4
|
|
(11
|
)
|
|
|
26
|
|
Other
|
146
|
|
|
31
|
|
|
(51
|
)
|
|
|
(11
|
)
|
|
|
115
|
|
|
2,204
|
|
|
374
|
|
|
(596
|
)
|
|
|
(35
|
)
|
|
|
1,947
|
|
Short-term provisions
|
770
|
|
|
|
|
|
|
|
|
|
|
426
|
|
|||
Long-term provisions
|
1,434
|
|
|
|
|
|
|
|
|
|
|
1,521
|
|
|||
|
2,204
|
|
|
|
|
|
|
|
|
|
|
1,947
|
|
1.
|
Additions exclude provisions reversed or utilized during the same year.
|
2.
|
Effects of foreign exchange and other movements in 2017 are mainly related to the depreciation of U.S. dollar against local currencies primarily in Europe.
|
3.
|
On November 16, 2016, upon settlement of the competition commission case in South Africa, the provision of
84
recorded for this case was reclassified to "other long-term obligations" (
65
) and "Accrued expenses and other liabilities" (
19
).
|
4.
|
Deductions and payments for commercial agreements and onerous contracts reflect the increase in raw materials and steel prices.
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||
Purchase commitments
|
24,734
|
|
|
24,432
|
|
Guarantees, pledges and other collateral
|
5,021
|
|
|
4,424
|
|
Non-cancellable operating leases
|
1,311
|
|
|
1,312
|
|
Capital expenditure commitments
|
878
|
|
|
466
|
|
Other commitments
|
1,206
|
|
|
1,432
|
|
Total
|
33,150
|
|
|
32,066
|
|
|
Year Ended December 31,
|
||||
|
2017
|
|
2016
|
|
2015
|
Total current tax expense (benefit)
|
583
|
|
255
|
|
331
|
Total deferred tax expense (benefit)
|
(151)
|
|
731
|
|
571
|
Total income tax expense (benefit)
|
432
|
|
986
|
|
902
|
|
Year Ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Net income (loss) (including non-controlling interests)
|
4,575
|
|
|
1,734
|
|
|
(8,423
|
)
|
Income tax expense (benefit)
|
432
|
|
|
986
|
|
|
902
|
|
Income (loss) before tax
|
5,007
|
|
|
2,720
|
|
|
(7,521
|
)
|
Tax expense (benefit) at the statutory rates applicable to profits (losses) in the countries
1
|
1,407
|
|
|
677
|
|
|
(2,146
|
)
|
Permanent items
|
(522
|
)
|
|
(5,940
|
)
|
|
(2,124
|
)
|
Rate changes
|
(94
|
)
|
|
593
|
|
|
—
|
|
Net change in measurement of deferred tax assets
|
(281
|
)
|
|
5,344
|
|
|
4,940
|
|
Tax effects of foreign currency translation
|
(157
|
)
|
|
73
|
|
|
153
|
|
Tax credits
|
(66
|
)
|
|
(21
|
)
|
|
(13
|
)
|
Other taxes
|
90
|
|
|
126
|
|
|
18
|
|
Others
|
55
|
|
|
134
|
|
|
74
|
|
Income tax expense (benefit)
|
432
|
|
|
986
|
|
|
902
|
|
1.
|
Tax expense (benefit) at the statutory rates is based on income (loss) before tax excluding income (loss) from investments in associates and joint ventures.
|
|
Year Ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Tax deductible write-downs on shares and receivables
|
(652
|
)
|
|
(5,971
|
)
|
|
(2,622
|
)
|
Non tax deductible goodwill impairment
|
—
|
|
|
—
|
|
|
250
|
|
Non tax deductible hyperinflationary adjustment
|
26
|
|
|
22
|
|
|
114
|
|
Taxable income (tax loss) of AMTFS
|
(34
|
)
|
|
20
|
|
|
196
|
|
Taxable dividends
|
65
|
|
|
19
|
|
|
—
|
|
Other permanent items
|
73
|
|
|
(30
|
)
|
|
(62
|
)
|
Total permanent items
|
(522
|
)
|
|
(5,940
|
)
|
|
(2,124
|
)
|
|
Year Ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Tax contingencies/settlements
|
7
|
|
|
149
|
|
|
(8
|
)
|
Prior period taxes
|
(7
|
)
|
|
(18
|
)
|
|
96
|
|
Others
|
55
|
|
|
3
|
|
|
(14
|
)
|
Total
|
55
|
|
|
134
|
|
|
74
|
|
|
|
Year Ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
Recognized in other comprehensive income on:
|
|
|
|
|
|
|
|||
Deferred tax expense (benefit)
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on derivative financial instruments
|
|
(77
|
)
|
|
(1
|
)
|
|
4
|
|
Recognized actuarial gain (loss)
|
|
(42
|
)
|
|
(1
|
)
|
|
47
|
|
Foreign currency translation adjustments
|
|
(90
|
)
|
|
27
|
|
|
(83
|
)
|
|
|
(209
|
)
|
|
25
|
|
|
(32
|
)
|
Recognized directly in equity on:
|
|
|
|
|
|
|
|||
Deferred tax expense (benefit)
|
|
|
|
|
|
|
|||
Others
|
|
9
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
(200
|
)
|
|
25
|
|
|
(32
|
)
|
|
Assets
|
|
Liabilities
|
|
Net
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||
Intangible assets
|
63
|
|
|
34
|
|
|
(869
|
)
|
|
(900
|
)
|
|
(806
|
)
|
|
(866
|
)
|
Property, plant and equipment
|
235
|
|
|
457
|
|
|
(5,334
|
)
|
|
(5,782
|
)
|
|
(5,099
|
)
|
|
(5,325
|
)
|
Inventories
|
291
|
|
|
367
|
|
|
(179
|
)
|
|
(315
|
)
|
|
112
|
|
|
52
|
|
Financial instruments
|
129
|
|
|
21
|
|
|
(559
|
)
|
|
(206
|
)
|
|
(430
|
)
|
|
(185
|
)
|
Other assets
|
203
|
|
|
307
|
|
|
(336
|
)
|
|
(310
|
)
|
|
(133
|
)
|
|
(3
|
)
|
Provisions
|
1,577
|
|
|
1,928
|
|
|
(424
|
)
|
|
(330
|
)
|
|
1,153
|
|
|
1,598
|
|
Other liabilities
|
359
|
|
|
468
|
|
|
(225
|
)
|
|
(555
|
)
|
|
134
|
|
|
(87
|
)
|
Tax losses carried forward
|
9,275
|
|
|
7,906
|
|
|
—
|
|
|
—
|
|
|
9,275
|
|
|
7,906
|
|
Tax credits and other tax benefits carried forward
|
233
|
|
|
270
|
|
|
—
|
|
|
—
|
|
|
233
|
|
|
270
|
|
Untaxed reserves
|
—
|
|
|
—
|
|
|
(68
|
)
|
|
(52
|
)
|
|
(68
|
)
|
|
(52
|
)
|
Deferred tax assets / (liabilities)
|
12,365
|
|
|
11,758
|
|
|
(7,994
|
)
|
|
(8,450
|
)
|
|
4,371
|
|
|
3,308
|
|
Deferred tax assets
|
|
|
|
|
|
|
|
|
7,055
|
|
|
5,837
|
|
||||
Deferred tax liabilities
|
|
|
|
|
|
|
|
|
(2,684
|
)
|
|
(2,529
|
)
|
|
Gross amount
|
|
Total deferred tax assets
|
|
Recognized deferred tax assets
|
|
Unrecognized deferred tax assets
|
Tax losses carried forward
|
110,855
|
|
28,313
|
|
9,275
|
|
19,038
|
Tax credits and other tax benefits carried forward
|
1,803
|
|
1,034
|
|
233
|
|
801
|
Other temporary differences
|
17,417
|
|
3,978
|
|
2,857
|
|
1,121
|
Total
|
|
|
33,325
|
|
12,365
|
|
20,960
|
|
Gross amount
|
|
Total deferred tax assets
|
|
Recognized deferred tax assets
|
|
Unrecognized deferred tax assets
|
Tax losses carried forward
|
96,648
|
|
25,735
|
|
7,906
|
|
17,829
|
Tax credits and other tax benefits carried forward
|
1,807
|
|
1,107
|
|
270
|
|
837
|
Other temporary differences
|
17,946
|
|
5,440
|
|
3,582
|
|
1,858
|
Total
|
|
|
32,282
|
|
11,758
|
|
20,524
|
Year expiring
|
|
Recognized
|
|
Unrecognized
|
|
Total
|
2018
|
|
26
|
|
4
|
|
30
|
2019
|
|
10
|
|
60
|
|
70
|
2020
|
|
73
|
|
149
|
|
222
|
2021
|
|
44
|
|
909
|
|
953
|
2022
|
|
231
|
|
608
|
|
839
|
2022 - 2036
|
|
849
|
|
4,329
|
|
5,178
|
Total
|
|
1,233
|
|
6,059
|
|
7,292
|
|
December 31, 2015
|
|
Movement in year
1
|
|
December 31, 2016
|
|
Movement in year
1
|
|
December 31, 2017
|
|||||
Issued shares
|
555,130,741
|
|
|
466,772,882
|
|
|
1,021,903,623
|
|
|
—
|
|
|
1,021,903,623
|
|
Treasury shares
|
(2,860,363
|
)
|
|
452,883
|
|
|
(2,407,480
|
)
|
|
420,644
|
|
|
(1,986,836
|
)
|
Total outstanding shares
|
552,270,378
|
|
|
467,225,765
|
|
|
1,019,496,143
|
|
|
420,644
|
|
|
1,019,916,787
|
|
1.
|
refer to note 10.2 on the mandatorily convertible notes (
137,967,116
or
45,989,039
after reverse stock split).
|
|
Year Ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Net income (loss) attributable to equity holders of the parent
|
4,568
|
|
|
1,779
|
|
|
(7,946
|
)
|
Weighted average common shares outstanding (in millions) for the purposes of basic earnings per share
|
1,020
|
|
|
953
|
|
|
598
|
|
Incremental shares from the rights issue on April 8, 2016 retrospectively adjusted for all prior periods
|
—
|
|
|
—
|
|
|
174
|
|
Weighted average common shares outstanding (in millions) for the purposes of basic earnings per share (restated)
|
1,020
|
|
|
953
|
|
|
772
|
|
Incremental shares from assumed conversion of restricted share units and performance share units (in millions)
|
4
|
|
|
2
|
|
|
—
|
|
Weighted average common shares outstanding (in millions) for the purposes of diluted earnings per share
|
1,024
|
|
|
955
|
|
|
772
|
|
1.
|
On May 22, 2017, ArcelorMittal completed the consolidation of each three existing shares in ArcelorMittal without nominal value into one share without nominal value. As a result of this reverse stock split, the dividend per share has been adjusted accordingly. Following the Company’s equity offering in April 2016, the dividends declared per share for prior periods has been recast for the year ended December 31, 2014, to include the bonus element derived from the
35%
discount to the theoretical ex-right price included in the subscription price. The actual dividends paid were
$0.60
per issued share as of December 31, 2014.
|
Name of Subsidiary
|
|
Country of incorporation and operation
|
|
% of non-controlling interests and non- controlling voting rights at December 31, 2017
|
|
% of non-controlling interests and non- controlling voting rights at December 31, 2016
|
|
Net income (loss) attributable to non- controlling interests for the year ended December 31, 2017
|
|
Non-controlling interests at December 31, 2017
|
|
Net income (loss) attributable to non- controlling interests for the year ended December 31, 2016
|
|
Non-controlling interests at December 31, 2016
|
|
Net income (loss) attributable to non- controlling interests for the year ended December 31, 2015
|
|||||
AMSA
|
|
South Africa
|
|
30.78%
|
|
30.78%
|
|
(124
|
)
|
|
195
|
|
|
(103
|
)
|
|
307
|
|
|
(301
|
)
|
Sonasid
1
|
|
Morocco
|
|
67.57%
|
|
67.57%
|
|
3
|
|
|
107
|
|
|
(5
|
)
|
|
95
|
|
|
(6
|
)
|
ArcelorMittal Kryvyi Rih
|
|
Ukraine
|
|
4.87%
|
|
4.87%
|
|
10
|
|
|
164
|
|
|
5
|
|
|
163
|
|
|
3
|
|
Belgo Bekaert Arames ("BBA")
|
|
Brazil
|
|
45.00%
|
|
45.00%
|
|
25
|
|
|
146
|
|
|
23
|
|
|
154
|
|
|
25
|
|
Hera Ermac
2
|
|
Luxembourg
|
|
—
|
|
—
|
|
—
|
|
|
797
|
|
|
—
|
|
|
880
|
|
|
—
|
|
AMMIC
3
|
|
Canada
|
|
15.00%
|
|
15.00%
|
|
91
|
|
|
479
|
|
|
28
|
|
|
488
|
|
|
32
|
|
Arceo
4
|
|
Belgium
|
|
62.86%
|
|
62.86%
|
|
4
|
|
|
168
|
|
|
5
|
|
|
148
|
|
|
4
|
|
ArcelorMittal Liberia Ltd
|
|
Liberia
|
|
15.00%
|
|
15.00%
|
|
(11
|
)
|
|
(266
|
)
|
|
(5
|
)
|
|
(256
|
)
|
|
(239
|
)
|
Other
|
|
|
|
|
|
|
|
9
|
|
|
276
|
|
|
7
|
|
|
211
|
|
|
5
|
|
Total
|
|
|
|
|
|
|
|
7
|
|
|
2,066
|
|
|
(45
|
)
|
|
2,190
|
|
|
(477
|
)
|
1.
|
Sonasid -
ArcelorMittal holds a controlling stake of
50%
in Nouvelles Sidérurgies Industrielles. ArcelorMittal controls Nouvelles Sidérurgies Industrielles on the basis of a shareholders’ agreement which includes deadlock arrangements in favor of the Company. Nouvelles Sidérurgies Industrielles holds a
64.86%
stake in Sonasid. The total non-controlling interests in Sonasid of
67.57%
are the
|
2.
|
Hera Ermac
- The non-controlling interests correspond to the equity component of the mandatory convertible bonds maturing on January 29, 2021 (see note 10.2)
.
|
3.
|
AMMIC
- On March 15, 2013 and May 30, 2013, a consortium led by POSCO and China Steel Corporation acquired a
15%
non-controlling interest in joint venture partnerships holding ArcelorMittal’s Labrador Trough iron ore mining and infrastructure assets.
|
4.
|
Arceo
- On June 1, 2015, the Company signed an agreement with Sogepa, an investment fund of the Walloon Region in Belgium, to restructure the research and development activities of their combined investment in Arceo, an investment previously accounted for under the equity method by the Company. On June 11, 2015, Sogepa made a capital injection into Arceo, decreasing the Company’s percentage ownership from
50.1%
to
37.7%
. Following the signed agreement to restructure the activities of Arceo, the Company obtained control and fully consolidated the investment, which resulted in an increase in non-controlling interests by
148
. Additionally, on December 13, 2016, Sogepa made a capital injection into Arceo, decreasing the Company's percentage ownership from
37.7%
to
37.1%
.
|
|
December 31, 2017
|
||||||||||||||||||||||
|
AMSA
|
|
Sonasid
|
|
AM Kryvyi Rih
|
|
BBA
|
|
Hera Ermac
|
|
AMMIC
|
|
Arceo
|
|
AM Liberia
|
||||||||
Current assets
|
1,457
|
|
|
181
|
|
|
1,228
|
|
|
220
|
|
|
210
|
|
|
1,050
|
|
|
56
|
|
|
107
|
|
Non-current assets
|
1,047
|
|
|
108
|
|
|
2,801
|
|
|
190
|
|
|
3,350
|
|
|
3,135
|
|
|
213
|
|
|
93
|
|
Total assets
|
2,504
|
|
|
289
|
|
|
4,029
|
|
|
410
|
|
|
3,560
|
|
|
4,185
|
|
|
269
|
|
|
200
|
|
Current liabilities
|
1,399
|
|
|
100
|
|
|
598
|
|
|
93
|
|
|
67
|
|
|
316
|
|
|
2
|
|
|
1,783
|
|
Non-current liabilities
|
470
|
|
|
34
|
|
|
266
|
|
|
21
|
|
|
616
|
|
|
555
|
|
|
1
|
|
|
35
|
|
Net assets
|
635
|
|
|
155
|
|
|
3,165
|
|
|
296
|
|
|
2,877
|
|
|
3,314
|
|
|
266
|
|
|
(1,618
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
AMSA
|
|
Sonasid
|
|
AM Kryvyi Rih
|
|
BBA
|
|
Hera Ermac
|
|
AMMIC
|
|
Arceo
|
|
AM Liberia
|
||||||||
Revenue
|
2,926
|
|
|
371
|
|
|
2,486
|
|
|
698
|
|
|
—
|
|
|
1,943
|
|
|
—
|
|
|
56
|
|
Net income (loss)
|
(403
|
)
|
|
6
|
|
|
209
|
|
|
52
|
|
|
1,130
|
|
|
617
|
|
|
6
|
|
|
(71
|
)
|
Total comprehensive income (loss)
|
(421
|
)
|
|
4
|
|
|
210
|
|
|
52
|
|
|
1,130
|
|
|
613
|
|
|
6
|
|
|
(71
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
AMSA
|
|
Sonasid
|
|
AM Kryvyi Rih
|
|
BBA
|
|
Hera Ermac
|
|
AMMIC
|
|
Arceo
|
|
AM Liberia
|
||||||||
Net cash provided by / (used in) operating activities
|
(119
|
)
|
|
(7
|
)
|
|
194
|
|
|
63
|
|
|
(12
|
)
|
|
947
|
|
|
10
|
|
|
(69
|
)
|
Net cash provided by / (used in) investing activities
|
(193
|
)
|
|
(3
|
)
|
|
(234
|
)
|
|
(9
|
)
|
|
12
|
|
|
(301
|
)
|
|
3
|
|
|
(63
|
)
|
Net cash provided by / (used in) financing activities
|
330
|
|
|
(4
|
)
|
|
—
|
|
|
(61
|
)
|
|
—
|
|
|
(656
|
)
|
|
(8
|
)
|
|
132
|
|
Impact of currency movements on cash
|
13
|
|
|
1
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
At the beginning of the year
|
110
|
|
|
51
|
|
|
102
|
|
|
12
|
|
|
—
|
|
|
168
|
|
|
7
|
|
|
—
|
|
At the end of the year
|
141
|
|
|
38
|
|
|
60
|
|
|
5
|
|
|
—
|
|
|
158
|
|
|
13
|
|
|
—
|
|
Dividend to non-controlling interests
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
(98
|
)
|
|
(5
|
)
|
|
—
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
AMSA
|
|
Sonasid
|
|
AM Kryvyi Rih
|
|
BBA
|
|
Hera Ermac
|
|
AMMIC
|
|
Arceo
|
|
AM Liberia
|
||||||||
Current assets
|
1,108
|
|
|
155
|
|
|
973
|
|
|
212
|
|
|
221
|
|
|
2,255
|
|
|
21
|
|
|
93
|
|
Non-current assets
|
1,145
|
|
|
107
|
|
|
2,857
|
|
|
206
|
|
|
1,798
|
|
|
3,751
|
|
|
219
|
|
|
49
|
|
Total assets
|
2,253
|
|
|
262
|
|
|
3,830
|
|
|
418
|
|
|
2,019
|
|
|
6,006
|
|
|
240
|
|
|
142
|
|
Current liabilities
|
1,013
|
|
|
94
|
|
|
491
|
|
|
82
|
|
|
65
|
|
|
314
|
|
|
4
|
|
|
1,081
|
|
Non-current liabilities
|
245
|
|
|
28
|
|
|
275
|
|
|
25
|
|
|
127
|
|
|
3,835
|
|
|
1
|
|
|
608
|
|
Net assets
|
995
|
|
|
140
|
|
|
3,064
|
|
|
311
|
|
|
1,827
|
|
|
1,857
|
|
|
235
|
|
|
(1,547
|
)
|
|
December 31, 2016
|
||||||||||||||||||||||
|
AMSA
|
|
Sonasid
|
|
AM Kryvyi Rih
|
|
BBA
|
|
Hera Ermac
|
|
AMMIC
|
|
Arceo
|
|
AM Liberia
|
||||||||
Revenue
|
2,228
|
|
|
300
|
|
|
2,068
|
|
|
627
|
|
|
—
|
|
|
1,472
|
|
|
—
|
|
|
56
|
|
Net income (loss)
|
(335
|
)
|
|
(7
|
)
|
|
98
|
|
|
53
|
|
|
402
|
|
|
(66
|
)
|
|
7
|
|
|
(29
|
)
|
Total comprehensive income (loss)
|
(349
|
)
|
|
(8
|
)
|
|
106
|
|
|
49
|
|
|
402
|
|
|
(74
|
)
|
|
7
|
|
|
(29
|
)
|
|
December 31, 2016
|
||||||||||||||||||||||
|
AMSA
|
|
Sonasid
|
|
AM Kryvyi Rih
|
|
BBA
|
|
Hera Ermac
|
|
AMMIC
|
|
Arceo
|
|
AM Liberia
|
||||||||
Net cash provided by / (used in) operating activities
|
11
|
|
|
28
|
|
|
159
|
|
|
63
|
|
|
28
|
|
|
279
|
|
|
4
|
|
|
(45
|
)
|
Net cash provided by / (used in) investing activities
|
(149
|
)
|
|
(6
|
)
|
|
(156
|
)
|
|
(15
|
)
|
|
(28
|
)
|
|
(283
|
)
|
|
(78
|
)
|
|
(73
|
)
|
Net cash provided by / (used in) financing activities
|
80
|
|
|
(32
|
)
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
(24
|
)
|
|
80
|
|
|
117
|
|
Impact of currency movements on cash
|
29
|
|
|
—
|
|
|
(5
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
At the beginning of the year
|
139
|
|
|
61
|
|
|
104
|
|
|
12
|
|
|
—
|
|
|
196
|
|
|
1
|
|
|
1
|
|
At the end of the year
|
110
|
|
|
51
|
|
|
102
|
|
|
12
|
|
|
—
|
|
|
168
|
|
|
7
|
|
|
—
|
|
Dividend to non-controlling interests
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
December 31, 2015
|
|
|
|
|
||||||||||||||||||
|
AMSA
|
|
Sonasid
|
|
AM Kryvyi Rih
|
|
BBA
|
|
Hera Ermac
|
|
AMMIC
|
|
Arceo
|
|
AM Liberia
|
||||||||
Revenue
|
2,478
|
|
|
345
|
|
|
2,118
|
|
|
701
|
|
|
—
|
|
|
1,432
|
|
|
—
|
|
|
86
|
|
Net income (loss)
|
(581
|
)
|
|
(10
|
)
|
|
58
|
|
|
58
|
|
|
(242
|
)
|
|
475
|
|
|
7
|
|
|
(1,516
|
)
|
Total comprehensive income (loss)
|
(516
|
)
|
|
(14
|
)
|
|
70
|
|
|
61
|
|
|
(242
|
)
|
|
496
|
|
|
7
|
|
|
(1,516
|
)
|
|
December 31, 2015
|
|
|
|
|
||||||||||||||||||
|
AMSA
|
|
Sonasid
|
|
AM Kryvyi Rih
|
|
BBA
|
|
Hera Ermac
|
|
AMMIC
|
|
Arceo
|
|
AM Liberia
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided by / (used in) operating activities
|
(85
|
)
|
|
17
|
|
|
174
|
|
|
60
|
|
|
25
|
|
|
146
|
|
|
17
|
|
|
(103
|
)
|
Net cash provided by / (used in) investing activities
|
(99
|
)
|
|
(6
|
)
|
|
(154
|
)
|
|
(10
|
)
|
|
(23
|
)
|
|
(171
|
)
|
|
(142
|
)
|
|
(102
|
)
|
Net cash provided by / (used in) financing activities
|
307
|
|
|
15
|
|
|
—
|
|
|
(52
|
)
|
|
(2
|
)
|
|
(97
|
)
|
|
127
|
|
|
205
|
|
Impact of currency movements on cash
|
(23
|
)
|
|
(2
|
)
|
|
(43
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
At the beginning of the year
|
39
|
|
|
37
|
|
|
127
|
|
|
18
|
|
|
—
|
|
|
318
|
|
|
—
|
|
|
1
|
|
At the end of the year
|
139
|
|
|
61
|
|
|
104
|
|
|
12
|
|
|
—
|
|
|
196
|
|
|
1
|
|
|
1
|
|
Dividend to non-controlling interests
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
2016
|
||
Non-controlling interests
|
80
|
|
|
Purchase price (selling price), net
1
|
(56
|
)
|
|
Adjustment to equity attributable to the equity holders of the parent
|
136
|
|
1.
|
Amount paid in by non-controlling shareholders in AMSA following the rights issue
|
|
|
|
Year Ended December 31,
|
|
December 31,
|
|||||||||||
|
|
|
Sales
|
|
Trade receivables
|
|||||||||||
Related parties and their subsidiaries where applicable
|
Category
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|||||
Calvert
|
Joint Venture
|
|
2,030
|
|
|
1,400
|
|
|
1,271
|
|
|
13
|
|
|
35
|
|
Gonvarri Steel Industries
1
|
Associate
|
|
1,666
|
|
|
1,210
|
|
|
1,233
|
|
|
92
|
|
|
58
|
|
Macsteel
|
Joint Venture
|
|
521
|
|
|
399
|
|
|
516
|
|
|
38
|
|
|
17
|
|
ArcelorMittal CLN Distribuzione Italia S.r.l.
|
Joint Venture
|
|
472
|
|
|
414
|
|
|
310
|
|
|
18
|
|
|
—
|
|
Borçelik
|
Joint Venture
|
|
426
|
|
|
240
|
|
|
305
|
|
|
11
|
|
|
4
|
|
Bamesa
|
Associate
|
|
397
|
|
|
371
|
|
|
367
|
|
|
35
|
|
|
23
|
|
I/N Kote L.P.
|
Joint Venture
|
|
321
|
|
|
346
|
|
|
377
|
|
|
7
|
|
|
12
|
|
Aperam Société Anonyme ("Aperam")
|
Other
|
|
262
|
|
|
189
|
|
|
165
|
|
|
32
|
|
|
40
|
|
AM RZK
|
Joint Venture
|
|
235
|
|
|
163
|
|
|
148
|
|
|
15
|
|
|
8
|
|
C.L.N. Coils Lamiere Nastri S.p.A.
|
Associate
|
|
233
|
|
|
203
|
|
|
310
|
|
|
5
|
|
|
5
|
|
Tuper S.A.
2
|
Joint Venture
|
|
154
|
|
|
13
|
|
|
—
|
|
|
45
|
|
|
25
|
|
WDI
3
|
Associate
|
|
127
|
|
|
151
|
|
|
181
|
|
|
4
|
|
|
2
|
|
Stalprodukt S.A.
4
|
Available-for-sale
|
|
—
|
|
|
31
|
|
|
146
|
|
|
—
|
|
|
—
|
|
Gestamp
5
|
Other
|
|
—
|
|
|
26
|
|
|
310
|
|
|
—
|
|
|
—
|
|
Other
|
|
|
659
|
|
|
478
|
|
|
485
|
|
|
91
|
|
|
93
|
|
Total
|
|
|
7,503
|
|
|
5,634
|
|
|
6,124
|
|
|
406
|
|
|
322
|
|
|
1.
|
Gonvarri Steel Industries includes ArcelorMittal Gonvarri Brasil Productos Siderúrgicos which is a joint venture.
|
2.
|
The joint venture Tuper S.A. was acquired on October 6, 2016.
|
3.
|
WDI includes Westfälische Drahtindustrie Verwaltungsgesellschaft mbH & Co. KG and Westfälische Drahtindustrie GmbH.
|
4.
|
ArcelorMittal partially disposed of its former associate Stalprodukt S.A. and was then reclassified as available-for-sale on April 28, 2016 (see note 2).
|
5.
|
ArcelorMittal disposed of the former associate Gestamp on February 1, 2016 (see note 2).
|
|
|
|
Year Ended December 31,
|
|
December 31,
|
|||||||||||
|
|
|
Purchases
|
|
Trade payables
|
|||||||||||
Related parties and their subsidiaries where applicable
|
Category
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|||||
Tameh
|
Joint Venture
|
|
286
|
|
|
236
|
|
|
245
|
|
|
45
|
|
|
53
|
|
Baffinland
1
|
Associate
|
|
142
|
|
|
75
|
|
|
19
|
|
|
22
|
|
|
2
|
|
Aperam
|
Other
|
|
94
|
|
|
65
|
|
|
131
|
|
|
11
|
|
|
10
|
|
Calvert
|
Joint Venture
|
|
65
|
|
|
15
|
|
|
13
|
|
|
11
|
|
|
3
|
|
CFL Cargo S.A.
|
Associate
|
|
60
|
|
|
58
|
|
|
58
|
|
|
13
|
|
|
4
|
|
Exeltium S.A.S.
|
Associate
|
|
53
|
|
|
71
|
|
|
80
|
|
|
—
|
|
|
—
|
|
Baycoat Limited Partnership
|
Joint Venture
|
|
42
|
|
|
41
|
|
|
42
|
|
|
5
|
|
|
5
|
|
EIMP
2
|
Other
|
|
36
|
|
|
310
|
|
|
228
|
|
|
—
|
|
|
—
|
|
Gonvarri Steel Industries
3
|
Associate
|
|
19
|
|
|
146
|
|
|
176
|
|
|
51
|
|
|
23
|
|
Other
|
|
|
236
|
|
|
373
|
|
|
468
|
|
|
102
|
|
|
79
|
|
Total
|
|
|
1,033
|
|
|
1,390
|
|
|
1,460
|
|
|
260
|
|
|
179
|
|
|
1.
|
Baffinland was classified as an associate as of October 31, 2017 (see note 2).
|
2.
|
In addition to trade payables and purchases with related parties as defined by IAS 24, the Company also discloses this information for EIMP due to the close relationship with this entity.
The Company's
21%
stake in the EIMP was disposed of on August 7, 2017.
|
3.
|
Gonvarri Steel Industries includes ArcelorMittal Gonvarri Brasil Productos Siderúrgicos which is a joint venture.
|
(a)
|
Each Award granted during the 2017-2018 Plan Year shall vest after the completion of the three (3) full year financial exercises commenced after the date on which the Award was granted, subject to the continued active Employment of the Participant through such date and subject to the achievement of the performance targets described hereafter, each of which shall determine the vesting of a specific portion of the Award and therefore shall be calculated separately to determine the total vesting.
|
(b)
|
The performance targets for each Award granted during the 2017-2018 Plan Year and the portion of the Award conditioned by each of them shall be as follows:
|
(i)
|
The vesting of fifty percent (50%) of the Award (the “
TSR Award
”) shall be subject to the Company achievement on Total Shareholder Return (TSR) over the vesting period, one half of which shall be determined by comparing the Company’s TSR to the median of the average TSR performance of the companies comprising a comparator group defined by the Committee (the “
TSR Comparator Group Award Portion
”), as measured over the three-year vesting period, and one half of which shall be determined by comparing the Company’s TSR to the TSR achieved by all of the companies forming the S&P 500 index (the “
TSR S&P 500 Index Award Portion
”), and
|
(ii)
|
The vesting of the remaining fifty percent (50%) of the Award shall be subject to the Company achievement on Earnings Per Share ratio (EPS) over the vesting period relative to the EPS of the comparator group defined by the Committee (the “
EPS Award
”).
|
(c)
|
The performance targets applicable to the TSR Award and the EPS Award shall be as follows:
|
(i)
|
With respect to the TSR Comparator Group Award Portion, the threshold level shall be 100% of the median and the targeted level shall be 120% of the median of the average performance realized by the companies in the comparator group over the three years of the vesting period,
|
(ii)
|
With respect to the TSR S&P 500 Index Award, the threshold level shall be 100% of index performance and the targeted level shall be 2% better than the index
|
(iii)
|
With respect to the EPS Award, the threshold level shall be 100% of the median and the targeted level shall be 120% of the median of the average performance realized by the companies in the comparator group over the three years of the vesting period,
|
(d)
|
At the end of the vesting period the Committee shall determine the level of performance achieved for each of the performance criteria and, for the portion of the awards conditioned by each of them, the Performance Share Units that shall vest and be subject to settlement for each Participant as follows:
|
(i)
|
No Performance Share Units shall vest if the Committee determines that the achievement reached for the performance target is below the threshold level defined.
|
(ii)
|
Performance Share Units shall vest and the Participants shall have the right to the settlement of a number of shares equal to 50% of the Performance Share Units granted if the Committee determines that the achievement reached for the performance target is at the threshold level defined.
|
(iii)
|
Performance Share Units shall vest and the Participants shall have the right to the settlement of a number of shares equal to 100% of the Performance Share Units granted if the Committee determines that the achievement reached for the performance target is at the targeted level defined or above.
|
(e)
|
The Committee shall determine whether the performance criteria have been met within sixty (60) days from the vesting date, and shall inform each Participant of such performance as soon as practicable thereafter.
|
1.
|
Vesting and Settlement
.
|
2.
|
Committee Discretion
.
|
3.
|
Payments by the Company
.
|
4.
|
Adjustments Upon Certain Changes
.
|
5.
|
Amendment or Termination of the Plan
.
|
6.
|
Certain Limitations on Awards to Ensure Compliance with Code Section 409A
.
|
1.
|
Shares Available for Grant
. Subject to adjustment as provided in Section 7 of the Plan the number of shares of Common Stock that may be issued pursuant to Awards of Performance Share Units granted pursuant to the Plan during the 2017-2018 Plan Year and the number of shares of Common Stock that may be issued pursuant to Awards of Performance Share Units granted to the CEO Office members pursuant to the Group Management Board Performance Share Units Plan may not exceed 3,000,000.
|
2.
|
Vesting and Settlement
.
|
(a)
|
Each Award of Performance Share Units granted pursuant to the Plan during the 2017-2018 Plan Year shall vest after the completion of the three (3) full year financial exercises following the date on which the Award was granted subject to the achievement of the following goals measured for each financial year, and be settled by the Company pursuant to the terms of the Plan on or within fourteen (14) days after confirmation that the performance criteria have been met, provided that the Participant has submitted all necessary settlement information prior to such time: (x) the Company achievement on Total Shareholder Return (TSR) as compared to the median of the average TSR performance of the companies comprising a comparator group defined by the Committee (the “TSR Comparator Group”) and (y) the achievement of other strategic priorities as set and weighted by the Board of Directors if any.
|
(b)
|
Forfeiture of Performance Share Units.
|
1.
|
Vesting and Settlement
.
|
2.
|
Committee Discretion
.
|
3.
|
Payments by the Company
.
|
4.
|
Adjustments Upon Certain Changes
.
|
5.
|
Amendment or Termination of the Plan
.
|
6.
|
Certain Limitations on Awards to Ensure Compliance with Code Section 409A
.
|
1.
|
ArcelorMittal International Luxembourg is managed as part of the Europe segment as of January 1, 2017.
|
1.
|
I have reviewed this annual report on Form 20-F of ArcelorMittal;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s Board of Directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
|
1.
|
I have reviewed this annual report on Form 20-F of ArcelorMittal;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s Board of Directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Keith Philpott
|
|
/s/ Richard Oldcorn
|
Keith Philpott,
|
|
Richard Oldcorn,
|
Corporate Consultant, Coal Geology,
|
|
Chairman & Corporate Consultant (Due Diligence),
|
Project Manager
|
|
Project Director
|
SRK Consulting (UK) Limited
|
|
SRK Consulting (UK) Limited
|
/s/ Keith Philpott
|
|
/s/ Richard Oldcorn
|
Keith Philpott,
Corporate Consultant, Coal Geology,
Project Manager
SRK Consulting (UK) Limited
|
|
Richard Oldcorn,
Chairman & Corporate Consultant (Due Diligence),
Project Director
SRK Consulting (UK) Limited
|
Mine Name / MSHA Identification Number
|
|
Section 104 S&S
Citations
(1)
|
|
Section 104(b)
Orders
(2)
|
|
Section 104(d) Citations and
Orders
(3)
|
|
Section 110(b)(2)
Violations
(4)
|
|
Section 107(a)
Orders
(5)
|
|
Total Dollar Value of MSHA Assessments Proposed
(6)
|
Minorca 21-02449
|
|
9
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$12,955.00
|
Dry Branch Mine 46-09395
|
|
2
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$2,370.00
|
Red Hawk Mine 46-09300
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$0.00
|
Mine 35 46-08131
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$0.00
|
Mine 39 46-09261
|
|
76
|
|
2
|
|
4
|
|
0
|
|
0
|
|
$153,184.00
|
Mine 40 46-09298
|
|
1
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$116.00
|
Mine 42 46-09378
|
|
60
|
|
0
|
|
13
|
|
0
|
|
0
|
|
$185,146.00
|
VA Point No. 1 Mine 44-07172
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$0.00
|
Low Gap Mine 46-05741
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$0.00
|
No. 8 Loadout 46-07680
|
|
0
|
|
1
|
|
0
|
|
0
|
|
0
|
|
$626.00
|
Mine 41 44-07264
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$0.00
|
Mine 43 46-09496
|
|
23
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$44,098.00
|
Eckman Surface Mine 46-08647
|
|
5
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$7,269.00
|
Eckman Loadout 46-03341
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$928.00
|
Tea Branch 46-09477
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$0.00
|
Road Fork Load Out 46-08278
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$0.00
|
No. 31 Loadout 46-08554
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$0.00
|
Highwall Miner No. 2 46-09219
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$348.00
|
Mine No. 32 46-08659
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$116.00
|
Mine No. 58 36-00957
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$0.00
|
Eckman Plant 46-09357
|
|
1
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$1,126.00
|
Dans Branch Surface Mine 46-09517
|
|
1
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$396.00
|
(1)
|
Mine Act section 104 S&S citations shown above are for alleged violations of mandatory health or safety standards that could significantly and substantially contribute to a mine health and safety hazard. It should be noted that, for purposes of this table, S&S citations that are included in another column, such as Section 104(d) citations, are not also included as Section 104 S&S citations in this column.
|
(2)
|
Mine Act section 104(b) orders are for alleged failures to totally abate a citation within the time period specified in the citation.
|
(3)
|
Mine Act section 104(d) citations and orders are for an alleged unwarrantable failure (
i.e.
, aggravated conduct constituting more than ordinary negligence) to comply with mandatory health or safety standards.
|
(4)
|
Mine Act section 110(b)(2) violations are for an alleged “flagrant” failure (
i.e.
, reckless or repeated) to make reasonable efforts to eliminate a known violation of a mandatory safety or health standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.
|
(5)
|
Mine Act section 107(a) orders are for alleged conditions or practices which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated and result in orders of immediate withdrawal from the area of the mine affected by the condition.
|
(6)
|
Amounts shown include assessments proposed by MSHA during the three month period ending December 31, 2017 on all citations and orders, including those citations and orders that are not required to be included within the above chart.
|
Mine Name / MSHA Identification Number
|
|
Total Number of Mining Related Fatalities
|
|
Received Notice of Pattern of Violations Under Section 104(e) (yes/no)
(7)
|
|
Legal Actions Pending as of Last Day of Period
|
|
Legal Actions Initiated During Period
|
|
Legal Actions Resolved During Period
|
Minorca 21-02449
|
|
0
|
|
0
|
|
2
|
|
2
|
|
0
|
Dry Branch Mine 46-09395
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Red Hawk Mine 46-09300
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine 35 46-08131
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine 39 46-09261
|
|
0
|
|
0
|
|
6
|
|
5
|
|
0
|
Mine 40 46-09298
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine 42 46-09378
|
|
0
|
|
0
|
|
4
|
|
4
|
|
0
|
VA Point No. 1 Mine 44-07172
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Low Gap Mine 46-05741
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
No. 8 Loadout 46-07680
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine 41 44-07264
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine 43 46-09496
|
|
0
|
|
0
|
|
3
|
|
3
|
|
0
|
Eckman Surface Mine 46-08647
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Eckman Loadout 46-03341
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Tea Branch 46-09477
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Road Fork Load Out 46-08278
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
No. 31 Loadout 46-08554
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Highwall Miner No. 2 46-09219
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine No. 32 46-08659
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine No. 58 36-00957
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Eckman Plant 46-09357
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Dans Branch Surface Mine 46-09517
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
(7)
|
Mine Act section 104(e) written notices are for an alleged pattern of violations of mandatory health or safety standards that could significantly and substantially contribute to a mine safety or health hazard.
|
Mine Name / MSHA Identification Number
|
|
Contests of Citations and Orders
|
|
Contests of Proposed Penalties
|
|
Complaints for Compensation
|
|
Complaints of Discharge/ Discrimination/ Interference
|
|
Applications for Temporary Relief
|
|
Appeals of Judges Rulings
|
Minorca 21-02449
|
|
2
|
|
2
|
|
0
|
|
0
|
|
0
|
|
0
|
Dry Branch Mine 46-09395
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Red Hawk Mine 46-09300
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine 35 46-08131
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine 39 46-09261
|
|
10
|
|
5
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine 40 46-09298
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine 42 46-09378
|
|
0
|
|
4
|
|
0
|
|
0
|
|
0
|
|
0
|
VA Point No. 1 Mine 44-07172
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Low Gap Mine 46-05741
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
No. 8 Loadout 46-07680
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine 41 44-07264
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine 43 46-09496
|
|
0
|
|
3
|
|
0
|
|
0
|
|
0
|
|
0
|
Eckman Surface Mine 46-08647
|
|
5
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Eckman Loadout 46-03341
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Tea Branch 46-09477
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Road Fork Load Out 46-08278
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
No. 31 Loadout 46-08554
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Highwall Miner No. 2 46-09219
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine No. 32 46-08659
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Mine No. 58 36-00957
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Eckman Plant 46-09357
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
Dans Branch Surface Mine 46-09517
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|