Morgan Stanley | We highlight the main points dealt with in Arcelor’s conference following results: a.- Decarbonization: it reiterated its intention of investing in new projects/opportunities to prepare the company for the future with particular focus on those renewables which can be a competitive advantage for the business as the industry evolves. Management has assured that investments will be made within the established framework for capital allocation. A Net Debt limit of $7bn and a 50% FCF payout will be maintained. b.- Outlook: despite this being more moderate in terms of steel consumption, management still expects to see year-on-year growth in shipments, given that it hopes to gain market share via imports. c.- Impact of the Ukraine conflict: steel operations in the Ukraine are at 20% of capacity and mining production has increased from 35% to 60%. d.- Returns and capital discipline: the company reiterated the return of 50% FCF post-dividends.
