SEGMENT AND GEOGRAPHIC INFORMATION

6 Months Ended

Jun. 30, 2022

Disclosure of operating segments [abstract]

Reportable segments

The Company is organized in five operating and reportable segments, which are components engaged in business activities from which they may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Company), for which discrete financial information is available and whose operating results are evaluated regularly by the chief operating decision maker “CODM” to make decisions about resources to be allocated to the segment and assess its performance. The Company CODM is the Executive Office comprising the Executive Chairman, Mr. Lakshmi N. Mittal and the CEO, Mr. Aditya Mittal.

ArcelorMittal's operating segments include the attributable goodwill, intangible assets, property, plant and equipment, and certain equity method investments. They do not include cash and short-term deposits, short-term investments, tax assets and other current financial assets. Attributable liabilities are also those resulting from the normal activities of the segment, excluding tax liabilities and indebtedness but including post retirement obligations where directly attributable to the segment. The treasury function is managed centrally for the Company and is not directly attributable to individual operating segments or geographical areas.

ArcelorMittal’s segments are structured as follows:

•NAFTA represents the flat, long and tubular facilities of the Company located in Canada, Mexico and the United States. 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. The raw material supply of the NAFTA operations includes sourcing from iron ore captive mines in Mexico to supply the steel facilities.

•Brazil includes the flat operations of Brazil, 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. The raw material supply of the Brazil operations includes sourcing from iron ore captive mines in Brazil.

•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. The raw material supply of Europe operations includes sourcing from iron ore captive mines in Bosnia & Herzegovina.

•ACIS produces a combination of flat, long and tubular products. Its steel facilities are located in South Africa,

Ukraine and Kazakhstan. The raw material supply of the ACIS operations includes sourcing from iron ore captive mines in Kazakhstan and Ukraine and coal captive mines in Kazakhstan.

•Mining segment comprises the mines owned by ArcelorMittal in Canada and Africa (Liberia). It provides the Company's steel operations with high quality and low-cost iron ore reserves and also sells mineral products to third parties.

The following table summarizes certain financial data relating to ArcelorMittal’s operations in its different reportable segments:


	NAFTA	Brazil	Europe	ACIS	Mining	Others*	Elimination	Total
Six months ended June 30, 2022
Sales to external customers	7,385	6,291	26,377	3,189	727	9	—	43,978
Intersegment sales**	28	1,061	115	381	1,211	8	(2,804)	—
Operating income (loss)	1,871	1,875	4,144	323	974	(136)	(124)	8,927
Depreciation and amortization	186	129	652	211	120	18	—	1,316

Capital expenditures	202	213	398	197	162	12	—	1,184
Six months ended June 30, 2021
Sales to external customers	5,755	4,861	19,990	4,170	751	9	—	35,536
Intersegment sales**	23	937	37	726	1,317	7	(3,047)	—
Operating income (loss)	936	1,742	1,861	1,458	1,287	(126)	(85)	7,073
Depreciation and amortization	142	109	615	220	115	20	—	1,221

Capital expenditures	147	139	578	214	97	16	(3)	1,188

*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.

**Transactions between segments are reported on the same basis of accounting as transactions with third parties.

The reconciliation from operating income to net income is as follows:


	Six months ended June 30,
	2022	2021
Operating income	8,927	7,073
Income from investments in associates, joint ventures and other investments	1,137	1,043
Financing costs - net	(427)	(594)
Income before taxes	9,637	7,522
Income tax expense	(1,381)	(946)
Net income (including non-controlling interests)	8,256	6,576

Geographical segmentation

Sales (by destination)


	Six months ended June 30,
	2022	2021
Americas
United States	4,768	3,342
Brazil	4,545	3,971
Canada	2,281	1,844
Mexico	1,463	1,151
Argentina	856	598
Others Americas	960	749
Total Americas	14,873	11,655
Europe
Germany	4,236	3,019
France	3,288	2,489
Poland	3,399	2,328
Spain	2,665	2,041
Italy	2,396	2,667
Turkey	685	669
Czech Republic	848	598
United Kingdom	952	728
Belgium	1,071	877
Russia	420	863
Netherlands	1,046	628
Romania	312	228
Ukraine	275	394
Others Europe	3,499	2,200
Total Europe	25,092	19,729
Asia & Africa
South Africa	1,308	1,202
Morocco	416	325
Egypt	76	26
Rest of Africa	289	456
China	345	397
Kazakhstan	370	370
South Korea	240	264
India	47	91
Rest of Asia	922	1,021
Total Asia & Africa	4,013	4,152
Total	43,978	35,536

Product segmentation

The table below presents sales to external customers by product type. In addition to steel produced by the Company, amounts include material purchased for additional transformation and sold through distribution services. Others include mainly non-steel sales, manufactured and specialty steel products, and services.

Sales (by products)


	Six months ended June 30,
	2022	2021
Flat products	25,208	19,418
Long products	9,682	8,380
Tubular products	1,477	1,045
Mining products	837	839
Others	6,774	5,854
Total	43,978	35,536

Disaggregated revenue

The tables below summarize the disaggregated revenue recognized from contracts with customers for the six months ended June 30, 2022 and 2021, respectively:


Six months ended June 30, 2022	NAFTA	Brazil	Europe	ACIS	Mining	Others	Total
Steel sales	7,153	5,877	23,720	2,767	—	—	39,517
Non-steel sales 1	10	87	1,124	227	708	—	2,156
By-product sales 2	64	67	641	84	—	—	856
Other sales 3	158	260	892	111	19	9	1,449
Total	7,385	6,291	26,377	3,189	727	9	43,978


Six months ended June 30, 2021	NAFTA	Brazil	Europe	ACIS	Mining	Others	Total
Steel sales	5,594	4,588	17,874	3,470	—	—	31,526
Non-steel sales 1	1	91	861	490	740	—	2,183
By-product sales 2	43	52	439	67	—	—	601
Other sales 3	117	130	816	143	11	9	1,226
Total	5,755	4,861	19,990	4,170	751	9	35,536

1.Non-steel sales mainly relate to iron ore, coal, scrap and electricity;

2.By-products sales mainly relate to slag, waste and coke by-products;

3.Other sales are mainly comprised of shipping and other services.