increases during periods of economic strength. In addition, as further discussed below, excess supply relative to demand for steel in local markets generally results in increased exports and drives down global prices. In terms of inventory, steel stocking and destocking cycles affect apparent demand for steel and hence steel prices and steel producers’ profitability. For example, steel distributors may accumulate substantial steel inventories in periods of low prices and, in periods of rising real demand for steel from end-users, steel distributors may sell steel from inventory (destock), thereby delaying the effective implementation of steel price increases. Conversely, steel price decreases can sometimes develop their own momentum, as customers adopt a “wait and see” attitude and destock in the expectation of further price decreases.

Steel and iron ore price trends are difficult to predict, particularlydue in particular to their sensitivity to the current geopolitical and economicmacro-economic environment. Trade relations also affect the supply-demand relationship and hence prices. For example, while the imposition of tariffs in the United States and Europe at a rate of 25% supported local market steel prices in 2018, further tariffs on a widening list of imported products and retaliatory protectionist measures by other countries, particularly in the broader context of global trade tensions (especially between the United States and China), may at any point in the future have a significant negative impact on global trade and ultimately economic growth, steel demand and steel and iron ore prices. Management currently considers it likely that, while stabilization is possible,A significant example of the impact of the macro-economic trends on steel prices will not increase substantiallyhas been the ongoing COVID-19 pandemic and its economic ramifications. The overall effect in 2020 given expectations regarding(subject to some specific geographic exceptions) was a decline which began towards the end of the first quarter of 2020 (after prices had generally improved in the beginning of the year) and which then began to improve during the third quarter of 2020. The impact on prices going forward will be determined by such factors as the duration of the pandemic, the industry supply response and any impacts on input costs, including potential changes in raw material input prices (the latter having increased in the second and third quarters of 2020 due to improved demand conditions (e.g., renewed economic conditionsactivity in China) and demand.supply constraints in Brazil due to the impact of COVID-19). The extent of the economic damage attributable to the COVID-19 pandemic is highly uncertain, differs from country to country due to the duration and scope of the restrictions put in place to reduce the rate of infections and hospitalizations, the development and spread of variants of COVID-19 and both health and regulatory dynamics until effective vaccines are widely available. While activity in steel consuming industries recommenced or increased during the second and third quarters due to the partial or complete lifting of restrictions (or the exception of industrial activity from them), new restrictions were implemented in the fourth quarter of 2020 due to second waves and are expected to continue or to be implemented in the first part of 2021. Nonetheless, the activity in steel consuming industries continued to strengthen in the fourth quarter. GDP and steel demand contracted in 2020. While GDP and steel demand are expected to improve in 2021 in most regions, uncertainty is high and the speed and duration of any recovery will depend on a number of factors beyond the Company’s control, including the nature and duration of restrictions that remain in place or may be reinstituted, the effectiveness of vaccines as new variants of COVID-19 appear and spread, levels of unemployment, the decrease in wider corporate profitability as a result, and the level of fiscal policy support available. The Company has therefore made and will

continue to need to make ongoing decisions to adjust production in various geographies in accordance with the level of steel demand and government requirements. A scenario of prolonged low steel and (to a lesser extent or if simultaneous) iron ore prices whether or not combined with low steel demand, including as a result of negativesuch macroeconomic trends described above and geopolitical or macroeconomic trends,issues, would have a material adverse effect on ArcelorMittal’s results of operations and financial condition.

The prices of steel, iron ore, coking coal and scrap have been highly volatile in recent years. Volatility in steel and raw material prices can result from many factors including: trends in demand for iron ore in the steel industry itself, and particularly from Chinese steel producers (as the largest group of producers); industry structural factors (including the oligopolistic nature of the seaborne iron ore industry and the fragmented nature of the steel industry); the expectation or imposition of corrective trade measures such as tariffs; massive stocking and destocking activities (sudden drops in prices can lead end-users to delay

rates were 52%65% for iron ore and 12% 14% for PCI and coal in 2019)2020), it nevertheless remains exposed to volatility in the supply and price of iron ore and coking coal given that it obtains a significant portion of such raw materials under supply contracts from third parties.parties. For additional details on ArcelorMittal’s raw materials supply and self-sufficiency, see “Item 4.B—Information on the Company—Business“Business overview—Products—Mining products—Other raw materials and energy”.

Another area of exposure to price volatility is transportation. Freight costs (i.e., shipping) are an important component of ArcelorMittal’s cost of goods sold. In particular, if freight costs were to increase before iron ore or steel prices or if transportation is significantly disrupted as a result of new measures implemented to limit the spread of COVID-19 or for any other reason, this would directly and mechanically weigh on ArcelorMittal’s profitability (although it would make imports into its markets less competitive).

The steel industry is affected by global and regional production capacity and fluctuations in steel imports and exports, which are themselves affected by the existence and amounts of tariffs and customer stocking and destocking cycles. The steel industry has historically suffered from structural overcapacity globally, and the current global steelmaking capacity exceeds the current global consumption of steel. This overcapacity is affected by global macroeconomic trends and amplified during periods of global or regional economic weakness, dueleading to weaker global or regional demand. In particular, China is both the largest global steel consumer and the largest global steel producer by a large margin, and the balance between its domestic production and consumption has been an important factor influencing global steel prices, in recent years, such as in 2015, when Chinese domestic steel demand weakened resulting in a surge in Chinese steel exports. While the structural imbalance between Chinese supply and demand has been reduced by capacity eliminations in recent years, less strict capacity constraints and capacity creep may result in increasing overcapacity. In addition, a significant increase in Chinese capacity and/or a significant decrease in Chinese demand could lead to a renewed flood of Chinese steel exports. In the long-term, Chinese steel demand is expected to decline, as the economy slows, the need for large infrastructure projects wanes and pace of urbanization moderates. In addition, other developing markets (such as Brazil, Russia and Ukraine) continue to periodically show structural overcapacity after

steel products. The European steel market is particularly sensitive to decreases in demand as well as supply spikes from imports due to remaining structural overcapacity. For example, in response to a weak demand environment in Europe in the first half of 2019, the Company announced that it would temporarily reduce its European steelmaking capacity with total annualized production cuts of 4.2 million tonnes. ShouldIn 2020, steel demand not improve and/or exports be curtailed and/or supply increased, European steel market conditions could remain weak againstdecreased substantially in response to the backdropeconomic ramifications of continued structural overcapacity. Finally,the lockdowns imposed to restrict the spread of COVID-19 infections. Steel demand in EU28 fell by around 25% year-on-year during the second quarter of 2020 at the height of the restrictions but improved sharply during the second half of the year. Despite new restrictions being implemented in the United States, improved economic conditionsfourth quarter of 2020 and pricing support fromexpectation that restrictions will continue or be implemented in the Section 232 tariffs ledfirst part of 2021, manufacturing has been broadly unaffected, and steel supply has failed to new capacity being builtkeep pace with the growth in underlying steel demand, causing prices to increase. However, there is uncertainty as to how long restrictions will remain in place and previously idled capacity being re-opened during 2018. However, apparent steel consumption for flat products ("ASC") declined by over 4% in 2019, due not only to a downturn in real steel consumption ("RSC") but also significant destocking at both stockistswhether they may be tightened, and end-users. The reduction in inventories was amplified by steel prices falling from high levels, meaning stockists reduced purchases to rebuild stocks at lower prices. Such was the impact on the level and stability of destocking that changes in inventories directly accounted for over 50% of the decline in flat products apparentGDP and steel demand in 2021 will be dependent on factors beyond the United StatesCompany’s control as described earlier. The Company's sales and for almost 50%profitability may be materially or adversely affected the longer restrictions remain in place and the EU 28 last year. Althoughextent to which they are tightened and accordingly the Company expects ASC to grow in 2020, as it becomes more closely aligned to RSC, there is a continued risk of further weakness in underlying real demand which may affectgreater the Company's deliveriesimpact on employment and corporate profitability.

Developments in the competitive environment in the steel industry could have an adverse effect on ArcelorMittal’s competitive position and hence its business, financial condition, results of operations or prospects.

ArcelorMittal’s decisions about which facilities to operate and at which levels are made based upon customers’ orders for products as well as the capabilities and cost performance of the Company’s facilities. Considering temporary or structural overcapacity in the current market situation, production operations are concentrated at several plant locations and certain facilities are idled in response to customer demand, although operating costs are still incurred at such idled facilities. When idled facilities are restarted, ArcelorMittal incurs costs to replenish raw material inventories, prepare the previously idled

facilities for operation, perform the required repair and maintenance activities and prepare employees to return to work safely and resume production responsibilities. Such costs could have an adverse effect on its results of operations or financial condition. See "Item 4.A—Information onIn particular, given the Company—Historysignificant deterioration in economic activity and developmentsteel market conditions since measures to contain the COVID-19 pandemic were introduced, the Company was required to adapt its operations for much of 2020, in particular temporarily idling production during lockdown and with a leaner cost structure. The Company began taking actions during the third quarter of 2020, including the announced permanent closure of the Company—Key transactions and eventsblast furnace in 2019” for information about production cuts.Kraków, Poland.

In Italy, given the ongoing challenges faced by steelmakers at ArcelorMittal announced a seriesItalia, the unions made claims for urgent measures to ensure the health and safety of the workers and the resumption of stable social relations.

Most recently, in response to the economic ramifications of the COVID-19 pandemic, throughout much of 2020, ArcelorMittal has reduced production and implemented, and continues to implement, cost reduction measures, including temporary production cuts in steelmaking operations in Europe, totaling 4.2 million tonnes in annualized production for 2019. These initiativesand permanent workforce reductions. Initiatives such as these have in the past and may in the future lead to protracted labor

disputes and political controversy. In a depressed economic environmentFor example, ArcelorMittal France faced an unlimited strike beginning on October 5, 2020 in South Africa, ArcelorMittal South Africa initiated a Business Transformation projectresponse to continued work throughout the COVID-19 pandemic, including requests for hazard pay and continued pay in 2018 and a strategic workforce planning processthe event of idled production. No assurance can be given that started in January 2019 and ledfurther labor disputes relating to the announcement of a workforce reorganizationhealth crisis and reductionits ramifications will not arise in July 2019. As a result, ArcelorMittal South Africa engagedthe future, in consultations with employee representatives which concluded in November 2019. In addition, ArcelorMittal South Africa announced in November 2019 its intention to cease operations at Saldanha which led to a consultation process with employee representatives that concluded on January 7, 2020.particular if additional measures are implemented or are prolonged.

Steel manufacturing processes are dependent on critical steel-making equipment, such as furnaces, continuous casters, rolling mills and electrical equipment (such as transformers), and such equipment may incur downtime as a result of unanticipated failures or other events, such as fires, explosions, furnace breakdowns or as a result of natural disasters, epidemics or pandemics or severe weather conditions. ArcelorMittal’s manufacturing plants have experienced, and may in the future experience, plant shutdowns or periods of reduced production as a result of such equipment failures or other events, onefor example being the collapse of the

In 2020, in response to the economic ramifications of the COVID-19 pandemic, ArcelorMittal reduced production. To the extent that lost production as a result of such a disruptiondisruptions cannot be compensated for by unaffected facilities, such disruptions could have an adverse effect on ArcelorMittal’s operations, customer service levels and results of operations.

In addition, natural disasters and severe weather conditions could lead to significant damage at ArcelorMittal’s production facilities and general infrastructure. For example, ArcelorMittal Mexico’s production facilities located in Lázaro Cárdenas, Michoacán, Mexico are located in or close to areas prone to earthquakes. The Lázaro Cárdenas area has, in addition, been subject to a number of tsunamis in the past. The site of the joint venture AM/NS Calvert (“(���Calvert”) in the United States is located in an area subject to tornados and hurricanes. ArcelorMittal also has assets in locations subject to bush fires, specifically in Kazakhstan and South Africa, and to Arctic freeze. More generally, changing weather patterns and climatic conditions in recent years, possibly due to the phenomenon of global warming, have added to the unpredictability and frequency of natural disasters.

ArcelorMittal also purchases worldwide third-party public and product liability insurance coverage for all of its subsidiaries. Various other types of insurance are also maintained, such as comprehensive construction and contractor insurance for its greenfield and major capital expenditures projects, directors and officers liability, transport, and charterers’ liability, as well as other customary policies such as car insurance, travel assistance and medical insurance.

ArcelorMittal’s operations depend on the secure and reliable performance of its information technology systems. An increasing number of companies, including ArcelorMittal, have recently experienced intrusion attempts or even breaches of their information technology security, some of which have involved sophisticated and highly targeted attacks on their computer networks. ArcelorMittal’s corporate website was the target of a hacking attack in January 2012, which brought the website down for several days, and phishing, ransomware and virus attacks have been increasing in more recent years through 2019,

If unauthorized parties attempt or manage to bring down the Company’s website or force access into its information technology systems, they may be able to misappropriate confidential information, cause interruptions in the Company’s operations, damage its computers or process control systems or otherwise damage its reputation and business. In such circumstances, the Company could be held liable or be subject to regulatory or other actions for breaching confidentiality and personal data protection rules. Any compromise of the security of the Company’s information technology systems could result in a loss of confidence in the Company’s security measures and subject it to litigation, civil or criminal penalties, and adverse publicity that could adversely affect its reputation, financial condition and results of operations.

Hazards associated with underground mining operations, of which ArcelorMittal has several, include, among others:

ArcelorMittal is exposed to all of these hazards. The occurrence of any of the events listed above could delay production, increase production costs and result in death or injury to persons, damage to property and liability for ArcelorMittal, some or all of which may not be covered by insurance, as well as substantially harm ArcelorMittal’s reputation, both as a companyCompany focused on ensuring the health and safety of its employees and more generally.

the average contracted price for the previous three years. As a result, if the average contracted prices decline in the subsequent period, including sharply (given the historical volatility and wide swings in iron ore prices), the Company’s estimates of its reserves at year-end may decline.

If a project proves not to be economically feasible by the time ArcelorMittal is able to exploit it, ArcelorMittal may incur substantial losses and be obliged to recognize impairments. In addition, potential changes or complications involving metallurgical and other technological processes that arise during the life of a project may result in delays and cost overruns that may render the project not economically feasible.

The Company was formed and subsequently grew through mergers and acquisitions. After curtailing its large-scale M&A activity for several years following the 2008 financial crisis, it has made several large acquisitions in recent years, including its acquisition (via a joint venture) of Calvert in 2014, its acquisitions of Votorantim S.A.'sa long steel business (renamed

beginning mid-March 2020. These delays arewere particularly costly as ArcelorMittal Italia has been and remains loss-making since its consolidation in ArcelorMittal's results in November 2018, particularly in light of the recent and current market environment.

The amendment included terms for investment by Italian state-sponsored and other private entities into ArcelorMittal Italia, a new industrial plan involving lower-carbon steelmaking technologies, a revised lease payment structure and certain revised commitments and additional conditions precedent related to the completion of the obligation to purchase. The Investment Agreement was signed on December 10, 2020, providing for Invitalia, an Italian state-owned company, to invest up to €1.105 billion in ArcelorMittal Italia, in two tranches (equity and €25 million as a loan). While the first investment is currently expected to be made in the meantime, ArcelorMittal has continuedfirst quarter of 2021 (after having contractually been expected to be made by the operations at ArcelorMittal Italia. Noend of February following EU merger antitrust authorization in late January), no assurance can be given asthat it will be made or that the conditions precedent to the outcome of these negotiations or when ansecond investment and the purchase obligation under the lease agreement itself will be reached, if at all. Failurefulfilled or that further operational, financial, legal, regulatory, labor-related or political difficulties will not arise, potentially resulting in the failure to reach an agreement would likely lead toachieve the continuationanticipated benefits of the currently stayedproject, further losses, renewed litigation proceedings (and, potentially, a criminal investigation that had been launched) and could result in ArcelorMittal's continued exposure to or obligations in respect of ArcelorMittal Italia which has been loss-making since its consolidation by ArcelorMittal and the paymentpayments of substantial damages by AM InvestCoamounts or criminal charges against AM InvestCo and its officers and directors. See “Item 4.A—Information on the Company—History and development of the Company—other damages. For more information see “Introduction—Key transactions and events in 2019”2020” and note 9.3 to the consolidated financial statements for additional information.statements.

“Resolution Plan”) that detailed among other things the amount to be paid to existing creditors and towards capital infusion (totaling $7.1 billion and including $417 million of guaranteed working capital adjustment) and the improvements and related capital expenditures (totaling $2.6 billion) to be made over the medium-term, was approved by the Indian Supreme Court on November 15, 2019. In connection with the execution of the Resolution Plan, the Company provided a $0.6 billion performance guarantee which terminated on December 31, 2019.

successful operation may be affected by factors beyond the control of ArcelorMittal.ArcelorMittal, including delays and measures related to the COVID-19 pandemic. These factors include receiving financing on reasonable terms, obtaining or renewing required regulatory approvals and licenses, securing and maintaining adequate property rights to land and mineral resources, local opposition to land acquisition or project development, managing relationships with or obtaining consents from other shareholders, revision of economic viability projections, demand for the Company’s products, local environmental or health-related conditions, and general economic conditions. Any of these factors may cause the Company to delay, modify or forego some or all aspects of its development projects. For investment projects that the Company expects to fund primarily through internal sources, these sources may prove insufficient depending on the amount of internally generated cash flows and other uses of cash, and the Company may need to choose between incurring external financing or foregoing the investment. The Company cannot guarantee that it will be able to execute its greenfield, brownfield or other investment projects, and to the extent that they proceed, that it will be able to complete them on schedule, within budget, or achieve an adequate return on its investment. Conversely, should the Company decide to postpone or cancel development projects, it could incur various negative consequences such as litigation or impairment charges.

In addition, certain of these joint ventures and associates are currently experiencing, or may in the future experience, difficult operating conditions and/or incur losses. Difficult operating conditions in joint ventures and associates in which ArcelorMittal has invested may expose it to loss of its investment, requirements for additional investments or calls on guarantees.

technologies. The Company’s assumptions for future cash flows include an estimate for costs that the Company expects to incur to acquire emission allowances, which primarily impacts the flat steel operations in Europe. The assumption for carbon emission cost is based on historical experience, expected opportunities to mitigate or otherwise offset such future costs and information available of future changes. Due to economic developments, uncertainties over the pace of transition to low-emission technologies, political and environmental actions that will be taken to meet the carbon reduction goals, regulatory changes and emissions activity arising from climate-related matters, the Company’s assumptions used in the impairment test would cause an additional impairment loss to be recognized in respect of the NAFTArecoverable amount calculations, such as capital expenditure, carbon emission costs and ACIS segments.other assumptions are inherently uncertain and may ultimately differ from actual amounts.

avoid such dilution. In addition, ArcelorMittal has undertaken and may undertake further asset disposals in order to reduce debt. For example, ArcelorMittal announced in August 2019 that it hashad identified opportunities to unlock up to $2 billion in value from its asset portfolio over the next two years. These assetyears; it completed this optimization with the sale of ArcelorMittal USA in December 2020. Asset disposals are subject to execution risk and may fail to materialize, and the proceeds received from such disposals may not reflect values that management believes are achievable and/or cause substantial accounting losses (particularly if the disposals are done in difficult market conditions). In addition, to the extent that the asset disposals include the sale of all or part of core assets (including through an increase in the share of non-controlling interests), this could reduce ArcelorMittal’s consolidated cash flows and/or the economic interest of ArcelorMittal shareholders in such assets, which may be cash-generative and profitable ones.

February 2021, S&P revised the outlook of the Company's rating from negative to restorestable and reaffirmed the BBB- long-term issuer credit metrics. Fitch cited worseningrating. In light of the high level of uncertainty around the pandemic’s remaining course and the continued duration and extent of its economic ramifications in general and potential adverse effect on the steel market conditions amid decreasing industrial production, weak automotive demand, trade tensions and pressures from elevated raw material costs and lower steel prices leading to a squeeze of ArcelorMittal’s margins asindustry in particular, further actions by the basis for its change, and noted that a downgrade couldratings agencies cannot be triggered by further deteriorated credit metrics resulting, among other things, from the Group’s failure to carry out planned debt reduction measures due to large debt-funded mergers and acquisitions activity, aggressive capital expenditures or increased shareholder distributions.ruled out.

ArcelorMittal’s principal credit facilities contain restrictive covenants. These covenants limit, inter alia, encumbrances on the assets of ArcelorMittal and its subsidiaries, the ability of ArcelorMittal’s subsidiaries to incur debt and the ability of ArcelorMittal and its subsidiaries to dispose of assets in certain circumstances. ArcelorMittal’s principal credit facilities also include the following financial covenant: ArcelorMittal must ensure that the “Leverage Ratio”, being the ratio of “Consolidated Total Net Borrowings” (consolidated total borrowings less consolidated cash and cash equivalents) to “Consolidated

markets’ perception of its leverage. Announcements relating to growth or expansion initiatives, depending in part on their financing structure, could affect this perception and hence weigh on ArcelorMittal’s share price.

Underfunding of pension and other post-retirement benefit plans at some of ArcelorMittal’s operating subsidiaries could require the Company to make substantial cash contributions to pension plans or to pay for employee healthcare, which may reduce the cash available for ArcelorMittal’s business. 

Moreover, ArcelorMittal operates in several countries whose currencies are, or have in the past been, subject to limitations imposed by those countries’ central banks, or which have experienced sudden and significant devaluations. In emerging countries where ArcelorMittal has operations and/or generates substantial revenue, such as Argentina, Brazil, India, South Africa, Venezuela, Kazakhstan and Ukraine, the risk of significant currency devaluation is high. For example, the Argentinian peso has continued to substantially depreciated during the third quarter ofsince 2018, and in 2020 it has depreciated approximately 40% versus the U.S dollar. and the three-year cumulativeMoreover, inflation rate has exceeded 100% causing Argentina to be now considered as a hyperinflationary economy. The peso continued to depreciate significantly in 2019 reached its highest point since 1991 at 53.8% attesting the hyperinflationary dimension of Argentina's economy. In order to slow peso depreciation, and in September 2019,response to the economic situation, the Argentine government enacted a series of currency controls which require central bank permission to exchange pesos for foreign currency and make transfers abroad in response to the economic situation. currency.

Currency devaluations, the imposition of new exchange controls or other similar restrictions on currency convertibility, or the tightening of existing controls in the countries in which ArcelorMittal operates could adversely affect its business, financial condition, results of operations or prospects. See “Item 4.B—Information on the Company—Business“Business overview—Government regulations—Key currency regulations and exchange controls” and “Item 5—Operating“Operating and Financial Review and Prospects—financial review—Economic conditions—Impact of exchange rate movements”.

As ofAt December 31, 2019,2020, a trust (HSBC Trustee (C.I.) Limited, as trustee), of which Mr. Lakshmi N. Mittal, Mrs. Usha Mittal and their children are the beneficiaries (referred to as the "Significant Shareholder"), beneficially owned (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) ordinary shares amounting (when aggregated with ordinary shares of ArcelorMittal and options to acquire ordinary shares held directly by Mr. and Mrs. Mittal) to 382,277,751393,046,404 in the aggregate, representing 36.37% of ArcelorMittal’s outstanding shares. The foregoing statement does not give effect to the ordinary shares representing 37.41%resulting from the conversion of ArcelorMittal’sthe mandatorily convertible subordinated notes issued in May 2020 outstanding as of December 31, 2020. Assuming conversion of all such outstanding mandatorily convertible subordinated notes (including those held by the Significant Shareholder), the Significant Shareholder would, together with Mr. and Mrs. Mittal, beneficially own 34.0% (assuming conversion of all notes at the maximum conversion ratio) or 34.3% (assuming conversion of all notes at the minimum conversion ratio) of outstanding shares. As a result, the Significant Shareholder has the ability to significantly influence the decisions adopted at the ArcelorMittal general meetings of shareholders, including matters involving mergers

or other business combinations, the acquisition or disposition of assets, issuances of equity and the incurrence of indebtedness.obtaining funding through debt. The Significant Shareholder also has the ability to significantly influence a change of control of ArcelorMittal. For further information on the Company’s major shareholders, see “Item 7.A—Major shareholders“Shareholders and related party transactions—markets—Major shareholders”.

Repatriation of funds from operating subsidiaries may also be affected by tax and foreign exchange policies in place from time to time in the various countries where the Company operates, though none of these policies are currently significant in the context of ArcelorMittal’s overall liquidity. Under the laws of Luxembourg, ArcelorMittal will be able to pay dividends or distributions through income from industrial franchise fees or to the extent that it is entitled to receive cash dividend distributions from its subsidiaries, recognize gains from the sale of its assets or record share premium from the issuance of shares.

Despite ArcelorMittal’s efforts to comply with environmental, health and safety laws and regulations, and monitor and reduce accidents at its facilities, health, safety and environmental incidents or accidents do occur, some of which may result in costs and liabilities and negatively impact the Company’s reputation or the operations of the affected facility. Such accidents could include explosions or gas leaks, fires or collapses in underground mining operations, vehicular accidents, and other

life. Any actions taken by such individuals or communities in response to such concerns could compromise ArcelorMittal’s profitability or, in extreme cases, the viability of an operation or the development of new activities in the relevant region or country.

Following the international agreement reached by the United Nations Framework Convention on Climate Change in

Commission to introduce a carbon border adjustment mechanism to the safeguard measures on steel imports in order to ensure that imports into Europe face the same carbon costs as producers in Europe. The European Commission is currently working on the design of the instrument with a proposal expected to be presented in June 2021, although no assurance can be given as to the timing of such proposal or its implementation.

For further information on environmental laws and regulations and how they affect the Company's operations, see “Item 4.B—Information on the Company—Business“Business overview—Government regulations—Environmental laws and regulations” and note 9.3 to ArcelorMittal’s consolidated financial statements.

adversely affect ArcelorMittal’s cash flows, liquidity and ability to pay dividends.

Certain emerging markets where ArcelorMittal has operations have experienced or are experiencing particularly difficult operating conditions. Brazil, for example, is emerging from a period of severe recession and political uncertainty. South Africa entered a recession in the second quarter of 2018, and prior to this recession, the South African steel and mining industries have been subject to a challenging operating environment characterized by lower local demand, increased cheap imports and higher costs, resulting in losses in recent years for ArcelorMittal South Africa. Many emerging markets are also at risk of economic crises (be it external debt, currency, domestic corporate, household or public debt crises) usually brought on by an economic or political shock which can exacerbate existing domestic structural imbalances. Crises in Argentina and Turkey in 2018/19 were examples and had negative impacts on the Company’s core markets in Brazil and the EU, respectively. Other countries at risk of further economic crises include, for example, South Africa (in relation to its public debt), Ukraine (in relation to its external debt) and to a lesser extent India (in relation to its public debt).

ArcelorMittal is subject to an extensive, complex and evolving regulatory framework which may expose it and its subsidiaries, joint ventures and associates to investigations by governmental authorities, litigation and fines, in relation, among other things, to antitrust and compliance matters. The resolution of such matters could negatively affect the Company’s profitability and cash flows in a particular period or harm its reputation.

Unfavorable outcomes in current and potential future litigation and investigations relating to anti-trust and compliance matters could reduce ArcelorMittal’s liquidity and negatively affect its

profitability, cash flows, results of operations and financial condition, as well as harm its reputation.