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PERSONNEL EXPENSES AND DEFERRED EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure of Employees Total Annual Compensation

As of December 31, 2022, 2021 and 2020, ArcelorMittal had approximately 154,000, 158,000 and 168,000 employees, respectively, and the total annual compensation of ArcelorMittal’s employees in 2022, 2021 and 2020 was as follows:


	Year ended December 31,
Employee Information	2022	2021	2020
Wages and salaries	6,463	6,707	7,681
Defined benefits cost (see note 8.2)	153	117	260

Other staff expenses	1,300	1,166	1,405
Total	7,916	7,990	9,346

Disclosure of Information About Key Management Personnel

The total annual compensation of ArcelorMittal’s key management personnel, including its Board of Directors, expensed in 2022, 2021 and 2020 was as follows:


	Year ended December 31,
	2022	2021	2020
Base salary and directors fees	11	10	7
Short-term performance-related bonus	16	12	3
Post-employment benefits	1	2	1
Share-based payments	7	7	4

Disclosure of Net Defined Benefit Liability (Asset)

Total deferred employee benefits including pension or other post-employment benefits, are as follows:


	December 31,
	2022	2021
Pension plan benefits	1,543	2,334
Other post-employment benefits and other long-term employee benefits ("OPEB")	861	1,184
Termination benefits	150	191
Defined benefit liabilities	2,554	3,709
Provisions for social plans (non-current)	52	63
Total	2,606	3,772

The following tables detail the reconciliation of defined benefit obligation (“DBO”), plan assets, irrecoverable surplus and statements of financial position.


	Year ended December 31, 2022
	Total	Canada	Brazil	Europe	Other
Change in benefit obligation
Benefit obligation at beginning of the period	6,739	3,306	398	2,751	284
Current service cost	99	24	—	63	12
Interest cost on DBO	183	95	39	26	23
Past service cost - Plan amendments	5	9	—	(4)	—
Past service cost - Curtailments	(26)	—	—	(26)	—
Plan participants’ contribution	1	—	—	1	—

Actuarial (gain) loss	(1,287)	(647)	—	(645)	5
Demographic assumptions	42	—	—	(1)	43
Financial assumptions	(1,452)	(678)	(31)	(699)	(44)
Experience adjustment	123	31	31	55	6
Benefits paid	(388)	(208)	(36)	(117)	(27)



Foreign currency exchange rate differences and other movements	(394)	(204)	30	(200)	(20)
Benefit obligation at end of the period	4,932	2,375	431	1,849	277

Change in plan assets
Fair value of plan assets at beginning of the period	4,496	3,163	376	918	39
Interest income on plan assets	130	87	34	8	1
Return on plan assets less than discount rate	(705)	(473)	(9)	(213)	(10)
Employer contribution	65	22	—	43	—
Plan participants’ contribution	1	—	—	1	—


Benefits paid	(296)	(206)	(36)	(52)	(2)

Foreign currency exchange rate differences and other movements	(225)	(193)	26	(58)	—
Fair value of plan assets at end of the period	3,466	2,400	391	647	28

Present value of the wholly or partly funded obligation	(3,895)	(2,364)	(431)	(1,072)	(28)
Fair value of plan assets	3,466	2,400	391	647	28
Net present value of the wholly or partly funded obligation	(429)	36	(40)	(425)	—
Present value of the unfunded obligation	(1,037)	(11)	—	(777)	(249)
Prepaid due to unrecoverable surpluses	(33)	(27)	(3)	(3)	—
Net amount recognized	(1,499)	(2)	(43)	(1,205)	(249)

Net assets related to funded obligations	44	39	—	4	1
Recognized liabilities	(1,543)	(41)	(43)	(1,209)	(250)

Change in unrecoverable surplus
Unrecoverable surplus at beginning of the period	(33)	(28)	(2)	(3)	—
Interest cost on unrecoverable surplus	(1)	(1)	—	—	—
Change in unrecoverable surplus in excess of interest	(1)	—	(1)	—	—
Exchange rates changes	2	2	—	—	—
Unrecoverable surplus at end of the period	(33)	(27)	(3)	(3)	—


	Year ended December 31, 2021
	Total	Canada	Brazil	Europe	Other
Change in benefit obligation
Benefit obligation at beginning of the period	7,604	3,590	517	3,173	324
Current service cost	105	29	—	69	7
Interest cost on DBO	162	89	33	17	23
Past service cost - Plan amendments	31	28	—	3	—

Plan participants’ contribution	1	—	—	1	—
Settlements	(5)	(4)	(1)	—	—
Actuarial (gain) loss	(509)	(216)	(83)	(173)	(37)
Demographic assumptions	9	—	10	(1)	—
Financial assumptions	(364)	(207)	(103)	(13)	(41)
Experience adjustment	(154)	(9)	10	(159)	4
Benefits paid	(428)	(219)	(31)	(148)	(30)

Foreign currency exchange rate differences and other movements	(222)	9	(37)	(191)	(3)
Benefit obligation at end of the period	6,739	3,306	398	2,751	284

Change in plan assets
Fair value of plan assets at beginning of the period	4,654	3,167	435	1,007	45
Interest income on plan assets	108	76	26	5	1
Return on plan assets greater (less) than discount rate	41	103	(25)	(33)	(4)
Employer contribution	72	29	—	43	—
Plan participants’ contribution	1	—	—	1	—
Settlements	(5)	(4)	(1)	—	—
Benefits paid	(313)	(218)	(31)	(61)	(3)

Foreign currency exchange rate differences and other movements	(62)	10	(28)	(44)	—
Fair value of plan assets at end of the period	4,496	3,163	376	918	39

Present value of the wholly or partly funded obligation	(5,222)	(3,291)	(398)	(1,501)	(32)
Fair value of plan assets	4,496	3,163	376	918	39
Net present value of the wholly or partly funded obligation	(726)	(128)	(22)	(583)	7
Present value of the unfunded obligation	(1,517)	(15)	—	(1,250)	(252)
Prepaid due to unrecoverable surpluses	(33)	(28)	(2)	(3)	—
Net amount recognized	(2,276)	(171)	(24)	(1,836)	(245)

Net assets related to funded obligations	58	47	—	4	7
Recognized liabilities	(2,334)	(218)	(24)	(1,840)	(252)

Change in unrecoverable surplus
Unrecoverable surplus at beginning of the period	(27)	(23)	(1)	(3)	—
Interest cost on unrecoverable surplus	(1)	(1)	—	—	—
Change in unrecoverable surplus in excess of interest	(5)	(4)	(1)	—	—

Unrecoverable surplus at end of the period	(33)	(28)	(2)	(3)	—

Summary of changes in the other post-employment benefit obligation and changes in plan assets are as follows:


	Year ended December 31, 2022
	Total	Canada	Europe	Others
Change in benefit obligation
Benefit obligation at beginning of the period	1,190	661	423	106
Current service cost	37	11	21	5
Interest cost on DBO	30	19	5	6



Actuarial (gain) loss	(250)	(163)	(71)	(16)
Demographic assumptions	1	—	—	1
Financial assumptions	(251)	(155)	(84)	(12)
Experience adjustment	—	(8)	13	(5)
Benefits paid	(71)	(32)	(32)	(7)

Foreign currency exchange rate differences and other movements	(70)	(41)	(32)	3
Benefit obligation at end of the period	866	455	314	97

Change in plan assets
Fair value of plan assets at beginning of the period	6	—	6	—

Return on plan assets less than discount rate	(1)	—	(1)	—





Fair value of plan assets at end of the period	5	—	5	—

Present value of the wholly or partly funded obligation	(20)	—	(20)	—
Fair value of plan assets	5	—	5	—
Net present value of the wholly or partly funded obligation	(15)	—	(15)	—
Present value of the unfunded obligation	(846)	(455)	(294)	(97)
Net amount recognized	(861)	(455)	(309)	(97)


	Year ended December 31, 2021
	Total	Canada	Europe	Others
Change in benefit obligation
Benefit obligation at beginning of the period	1,438	742	590	106
Current service cost	9	(1)	7	3
Interest cost on DBO	25	18	2	5
Past service cost - Plan amendments	(57)	1	(58)	—
Past service cost - Curtailments	(7)	—	(7)	—

Actuarial (gain) loss	(111)	(66)	(43)	(2)
Demographic assumptions	(1)	(2)	1	—
Financial assumptions	(66)	(55)	(5)	(6)
Experience adjustment	(44)	(9)	(39)	4
Benefits paid	(82)	(34)	(44)	(4)

Foreign currency exchange rate differences and other movements	(25)	1	(24)	(2)
Benefit obligation at end of the period	1,190	661	423	106

Change in plan assets
Fair value of plan assets at beginning of the period	6	—	6	—

Return on plan assets greater/(less) than discount rate	1	—	1	—


Benefits paid	(1)	—	(1)	—


Fair value of plan assets at end of the period	6	—	6	—

Present value of the wholly or partly funded obligation	(29)	—	(29)	—
Fair value of plan assets	6	—	6	—
Net present value of the wholly or partly funded obligation	(23)	—	(23)	—
Present value of the unfunded obligation	(1,161)	(661)	(394)	(106)
Net amount recognized	(1,184)	(661)	(417)	(106)

Components of Net Periodic Pension and Post-employment Cost

The following tables detail the components of net periodic pension cost:


	Year ended December 31, 2022
Net periodic pension cost (income)	Total	Canada	Brazil	Europe	Others
Current service cost	99	24	—	63	12
Past service cost - Plan amendments	5	9	—	(4)	—
Past service cost - Curtailments	(26)	—	—	(26)	—


Net interest cost (income) on net DB liability (asset)	52	7	5	18	22
Total	130	40	5	51	34


	Year ended December 31, 2021
Net periodic pension cost (income)	Total	Canada	Brazil	Europe	Others
Current service cost	105	29	—	69	7
Past service cost - Plan amendments	31	28	—	3	—


Net interest cost/(income) on net DB liability (asset)	55	14	7	12	22
Total	191	71	7	84	29


	Year ended December 31, 2020
Net periodic pension cost (income)	Total	Canada	Brazil	Europe	Others
Current service cost	129	25	—	64	40
Past service cost - Plan amendments	6	3	—	4	(1)
Past service cost - Curtailments	2	—	—	—	2


Net interest cost (income) on net DB liability (asset)	88	13	5	21	49
Total	225	41	5	89	90

The following tables detail the components of net periodic other post-employment cost:


	Year ended December 31, 2022
Components of net periodic OPEB cost (income)	Total	Canada	Europe	Others
Current service cost	37	11	21	5


Net interest cost (income) on net DB liability (asset)	29	19	4	6
Actuarial gain recognized during the year	(20)	—	(20)	—
Total	46	30	5	11


	Year ended December 31, 2021
Components of net periodic OPEB cost (income)	Total	Canada	Europe	Others
Current service cost	9	(1)	7	3
Past service cost - Plan amendments	(57)	1	(58)	—
Past service cost - Curtailments	(7)	—	(7)	—
Net interest cost (income) on net DB liability (asset)	25	18	2	5
Actuarial gain recognized during the year	(14)	(1)	(13)	—
Total	(44)	17	(69)	8


	Year ended December 31, 2020
Components of net periodic OPEB cost (income)	Total	Canada	Europe	Others
Current service cost	85	10	27	48
Past service cost - Plan amendments	(1)	(1)	—	—
Past service cost - Curtailments	3	—	—	3
Net interest cost (income) on net DB liability (asset)	110	19	7	84
Actuarial losses recognized during the year	8	—	8	—
Total	205	28	42	135

Expenses recognized in the Consolidated Statement of Operations

The following tables detail where the expense is recognized in the consolidated statements of operations:


	Year ended December 31,
	2022	2021	2020
Net periodic pension cost	130	191	225
Net periodic OPEB cost	46	(44)	205
Total	176	147	430

Cost of sales	115	72	189
Selling, general and administrative expenses	—	9	34
Financing costs - net	61	66	207
Total	176	147	430

Schedule of Weighted-average Asset Allocations for the Funded Defined Benefit Pension Plans by Asset Category

The weighted-average asset allocations for the funded defined benefit plans by asset category were as follows:


	December 31, 2022
		Canada		Brazil		Europe
Equity Securities		36	%	6	%	1	%
- Asset classes that have a quoted market price in an active market		27	%	4	%	1	%
- Asset classes that do not have a quoted market price in an active market		9	%	2	%	—
Fixed Income Securities (including cash)		43	%	77	%	69	%
- Asset classes that have a quoted market price in an active market		42	%	77	%	55	%
- Asset classes that do not have a quoted market price in an active market		1	%	—		14	%
Real Estate		10	%	1	%	—
- Asset classes that have a quoted market price in an active market		—		—		—
- Asset classes that do not have a quoted market price in an active market		10	%	1	%	—
Other		11	%	16	%	30	%
- Asset classes that have a quoted market price in an active market		—		16	%	7	%
- Asset classes that do not have a quoted market price in an active market		11	%	—		23	%	'1
Total		100	%	100	%	100	%


	December 31, 2021
		Canada		Brazil		Europe
Equity Securities		35	%	6	%	1	%
- Asset classes that have a quoted market price in an active market		27	%	3	%	1	%
- Asset classes that do not have a quoted market price in an active market		8	%	3	%	—
Fixed Income Securities (including cash)		53	%	87	%	69	%
- Asset classes that have a quoted market price in an active market		49	%	87	%	69	%
- Asset classes that do not have a quoted market price in an active market		4	%	—		—
Real Estate		7	%	1	%	—
- Asset classes that have a quoted market price in an active market		—		—		—
- Asset classes that do not have a quoted market price in an active market		7	%	1	%	—
Other		5	%	6	%	30	%
- Asset classes that have a quoted market price in an active market		—		6	%	8	%
- Asset classes that do not have a quoted market price in an active market		5	%	—		22	%	'1
Total		100	%	100	%	100	%

1.The percentage consists primarily of assets from insurance contracts in Belgium.

Disclosure of Fair Value of Plan Assets


	December 31, 2022
		Canada		Brazil		Europe
Equity Securities		33	%	6	%	2	%
Fixed Income Securities (including cash)		48	%	77	%	67	%
Real Estate		8	%	1	%	—
Other		11	%	16	%	31	%	'1
Total		100	%	100	%	100	%

1.The percentage consists primarily of assets from insurance contracts in Belgium.

Actuarial Assumptions for Defined Benefit Obligations

Assumptions used to determine benefit obligations at December 31,


	Pension Plans			Other Post-employment Benefits
	2022	2021	2020	2022	2021	2020
Discount rate
Range	3.75% - 24.00%	1.00% - 11.00%	0.50% - 10.00%	3.50% - 9.30%	1.00% - 7.95%	0.50% - 6.20%
Weighted average	5.44%	2.75%	2.13%	5.10%	2.65%	1.84%
Rate of compensation increase
Range	2.00% - 15.00%	2.00% - 10.00%	1.72% - 10.00%	2.00% - 4.80%	2.00% - 4.80%	1.30% - 4.80%
Weighted average	3.01%	2.87%	2.71%	3.29%	3.14%	2.85%

Disclosure of Defined Benefit Plans


	Other Post-employment Benefits
	2022	2021	2020
Healthcare cost trend rate assumed
Range	2.00% - 4.50%	1.30% - 4.50%	1.40% - 4.50%
Weighted average	3.97%	3.95%	3.94%

Disclosure of Sensitivity Analysis for Actuarial Assumptions

The following information illustrates the sensitivity to a change of the significant actuarial assumptions related to ArcelorMittal’s pension plans (as of December 31, 2022, the defined benefit obligation for pension plans was 4,932):


	Effect on 2023 Pre-Tax Pension Expense (sum of service cost and interest cost)	Effect on December 31, 2022 DBO
Change in assumption
100 basis points decrease in discount rate	(14)	519
100 basis points increase in discount rate	12	(425)
100 basis points decrease in rate of compensation	(12)	(130)
100 basis points increase in rate of compensation	13	132
1 year increase of the expected life of the beneficiaries	7	121

The following table illustrates the sensitivity to a change of the significant actuarial assumptions related to ArcelorMittal’s OPEB plans (as of December 31, 2022 the defined benefit obligation for post-employment benefit plans was 866):


	Effect on 2023 Pre-Tax OPEB Expense (sum of service cost and interest cost)	Effect on December 31, 2022 DBO
Change in assumption
100 basis points decrease in discount rate	(1)	95
100 basis points increase in discount rate	1	(77)
100 basis points decrease in healthcare cost trend rate	(4)	(52)
100 basis points increase in healthcare cost trend rate	5	64
1 year increase of the expected life of the beneficiaries	—	17

Terms and Conditions of Share-based Payment Arrangements

Conditions of the 2022 grant were as follows:

Executive Office

Executive Officers

2022 Grant

PSUs with a three year performance period

Value at grant 120% of base salary for the Executive Chairman and the CEO

Vesting conditions:

Vesting conditions

Threshold

Target

Stretch

TSR vs. peer group (50%) / EPS vs. peer group (20%)

100% vs. weighted average

≥120% vs. weighted average

TSR vs. peer group (40%)

100% weighted average

≥120% weighted average

Vesting percentage

100%

150%

Vesting percentage

100%

150%

Gap to competition (40%)

100% of target

120% of target

ESG (30%): H&S 10%, Climate action 10% and D&I 10%

100% of target

120% of target

Vesting percentage

100%

150%

ESG (20%): H&S 10%, Climate action 5% and D&I 5%

100% of target

120% of target

Vesting percentage

100%

150%

Vesting percentage

100%

150%

RSUs with a three year vesting period

he summary of outstanding plans as of December 31, 2022 is as follows:

Executive Office

Executive Officers

2019 Grant

PSUs with a three year performance period

Value at grant 100% of base salary for the Executive Chairman and the CEO

Vesting conditions:

Threshold

Target

TSR/EPS vs. peer group

100% median

≥120% median

ROCE

100% target

100% vesting

TSR vs. S&P 500

Performance equal to Index

≥Performance equal to Index + 2% p.a. outperformance

Gap to competition (where applicable)

100% target

100% vesting

Vesting percentage

50%

100%

Executive Office

Executive Officers

2020 Grant

PSUs with a three year performance period

Value at grant 100% of base salary for the Executive Chairman and the CEO

Vesting conditions:

Threshold

Target

Threshold

Target

TSR/EPS vs. peer group

100% median

≥120% median

TSR/EPS vs. peer group

100% median

≥120% median

Vesting percentage

50%

100%

TSR vs. S&P 500

Performance equal to Index

≥Performance equal to Index + 2% p.a. outperformance

Gap to competition (where applicable)

100% target

100% vesting

Vesting percentage

50%

100%

Vesting percentage

100%

RSUs with a three year vesting period

RSUs with a one year vesting period

Executive Office

Executive Officers

2021 Grant

PSUs with a three year performance period

Value at grant 100% of base salary for the Executive Chairman and the CEO

Vesting conditions:

Vesting conditions

Threshold

Target

Stretch

TSR vs. peer group (50%) / EPS vs. peer group (20%)

100% median

≥120% median

TSR vs. peer group (40%)

100% weighted average

≥120% weighted average

Vesting percentage

50%

100%

Vesting percentage

100%

150%

Gap to competition (40%)

100% of target

120% of target

ESG (30%)

100% of target

Vesting percentage

100%

150%

ESG (20%)

100% of target

120% of target

Vesting percentage

100%

150%

RSUs with a three year vesting period

RSUs with a two year vesting period

Summary of Share Unit Plans Outstanding

The following table summarizes the Company’s share unit plans outstanding as of December 31, 2022:


At Grant date						Number of shares issued as of December 31, 2022
Grant date	Type of plan	Number of shares	Number of beneficiaries	Maturity	Fair value per share	Shares outstanding	Shares forfeited	Shares vested
December 13, 2022	RSU	866,000	802	December 13, 2025	27.61	866,000	—	—
December 13, 2022	PSU	644,800	242	January 1, 2026	23.64	644,800	—	—
December 13, 2022	Executive Office	141,564	2	January 1, 2026	22.47	141,564	—	—
December 16, 2021	RSU	729,250	658	December 16, 2024	32.66	700,650	27,347	1,253
December 16, 2021	PSU	575,400	244	January 1, 2025	28.29	559,800	15,600	—
December 16, 2021	Executive Office	109,143	2	January 1, 2025	27.20	109,143	—	—
May 7, 2021	RSU	350,000	189	May 7, 2023	32.55	309,000	33,282	7,718
December 14, 2020	RSU	1,074,600	656	December 14, 2023	21.15	961,500	99,699	13,401
December 14, 2020	PSU	714,250	235	January 1, 2024	19.74	635,850	78,400	—
December 14, 2020	Executive Office	148,422	2	January 1, 2024	18.19	148,422	—	—
December 16, 2019	PSU	1,760,350	517	January 1, 2023	18.57	1,281,400	303,200	175,750
December 16, 2019	Executive Office	172,517	2	January 1, 2023	14.89	172,517	—	—







Total		7,286,296			$14.89 – $32.66	6,530,646	557,528	198,122

Schedule of Share Unit Plan Activity

Share unit plan activity is summarized below as of and for each year ended December 31, 2022, 2021 and 2020:


	RSUs		PSUs and Executive Office
	Number of shares	Fair value per share	Number of shares	Fair value per share








Outstanding, December 31, 2019	—	—	7,472,056	16.76
Granted	1,391,284	21.15	862,672	19.47
Exited	—	—	(658,141)	16.86
Forfeited	—	—	(526,420)	15.48
Outstanding, December 31, 2020	1,391,284	21.15	7,150,167	17.18
Granted	1,079,250	32.62	684,543	28.12
Exited	(315,699)	21.20	(613,385)	14.04
Forfeited	(59,885)	23.47	(2,915,514)	15.37
Outstanding, December 31, 2021	2,094,950	26.99	4,305,811	20.58
Granted	866,000	27.61	786,364	23.43
Exited	(17,294)	26.21	(673,661)	20.84
Forfeited	(106,506)	26.36	(725,018)	19.54
Outstanding, December 31, 2022	2,837,150	27.20	3,693,496	21.35