Arcelormittal SA

Good afternoon, everyone. This is Daniel Fergler from the Arsenal Mittal Investor Relations team. Thank you for joining this call to discuss Arsenal Mittal's performance and progress during the first half of 2025. Leading today's call will be our CFO, Mr. Gioino Cristino. Before we begin, I would like to mention a few housekeeping items. As usual, we will not be going through the results presentation in detail, but we published it this morning on our website for your information. I do want to draw your attention to the disclaimers that are on slide number 25 of that presentation. As normal, Germino will make some opening remarks before moving directly to the Q&A session. So to ask a question, please do press star 1 1 on your keypad to join the queue.

Over to you, Germino. Thanks, Daniel. And welcome, everyone.

And thanks for joining today's call. As usual, I will keep my remarks brief, beginning with safety, a core value for our company. We are less than one year into what we know will be at least a three-year transformation to implement the six core safety recommendations post the audit last year. Already, our enhanced safety assurance model has improved oversight and consistency. I'm encouraged by the progress we are making. and the determination that I see in my colleagues to drive lasting change and achieve our targets as quickly as possible. Now, I want to focus this quarter on three key points. First and foremost, our results continue to show structural improvements. Second quarter EBITDA increased as expected, and at $135 per ton, Our margin continues to show that the benefits of our asset optimization and growth strategy are delivering structurally higher margins. Our strategic projects have good momentum. Liberia posted a record volume quarter. Our India renewables project is delivering all the performance that was expected and more. And the commissioning of our new value-added capacity at Hazira is underway. Our strategic projects, together with the impacts of recently completed M&A, are an important support to our EBITDA profile. Compared to 2024 base, the impact on future normalized EBITDA is now expected to be $2.1 billion, a third of which is due to be captured in the current financial year. Asselomital has a unique asset portfolio, And this creates significant optionality for high return strategic investments. So I'm confident that we can maintain our growth momentum. My second point is that full ownership of Calvert is a very positive development for Asala Metal. Calvert is the premier steel making facility in the United States and a cornerstone of our North America franchise. Calvert achieved a new shipment record in the second quarter, 10% higher than the first quarter and 10% above the same period last year. Since 2014, Calvert has invested over $2 billion in improving its asset base and product portfolio. The biggest investment has been the new state-of-the-art EIF, which is ramping up right now and could not have been better timed Along with the new seven-year domestic flood supply contract, Calvert's highest quality finished steel will meet U.S. melted and pooled requirements. And we will continue to invest in the U.S. Our project to build a new world-class non-grain-oriented electrical steel facility in Alabama is well underway. This will be a billion-dollar investment over the next few years. with first production anticipated in 2027. And then, of course, we have the second EIF at Calvert, a decision on which will be taken as part of our next capital allocation cycle. My final point is on Europe, where we are transitioning to a more favorable market structure. We have the promise of a trade defense mechanism that protects the domestic industry and a carbon border that truly delivers a level playing field. A lot still needs to be action over the second half of this year. But if the European Commission delivers, then our business should be in a far better position to deliver the margins and returns on capital it is capable of when not suppressed by unfair trade. Added to this, more favorable mix is the prospect of demand support from low interest rates and higher investment in defense and infrastructure. Our market position and product capabilities place AcelerMittal favorably to capitalize on the opportunities these trends should create. Putting this all together, AcelerMittal is in a strong position, both operationally and financially. Our optimized asset portfolio is delivering structurally higher margins. And with the outlook supported by our strategic growth projects, this should continue. The value we are creating is being compounded by our share buybacks. Over the past four and a half years, we have bought back 38% of our equity. Each ArcelorMittal share now represents a greater proportion of our capacity, a bigger share of our leading franchise businesses, a larger stake in our growth, projects and a greater ownership of our unique business in India. With that, Daniel, I believe we can start the Q&A. Great. Thank you, Jamina. Just to remind everybody, if you do want to join the queue to ask a question, please do press star 1 1 on your telephone keypad. We do have a good queue in front of us already. And we will take the first question, please, from Alan at Morgan Stanley. Hi, Alain. Please go ahead and ask your question.