Q4 2024 ArcelorMittal SA Earnings Call

Cool.

Jim: Present on the call today, we have CEO Mitchell and our CFO, Jim you know Kristina.

Jim: Before we begin I would like to mention a few housekeeping items as usual, we will not be going through the results presentation, which we published this morning on our website. However, I do want to draw your attention to the disclaimers on slide 23 of that presentation.

Jim: Calling some opening remarks and with that you're enjoying we know we will move directly to the Q&A session. So if you would like to ask a question. Please do press star one one on your keypad to join the queue. So that instruction is star one to join the Q&A queue.

Jim: And with that I will hand over the call to edition.

Thanks, Danielle and welcome everyone and thank you for joining today's call.

Speaker Change: Before I ask Jeremy to comment on our financial performance I want to spend a moment reviewing the progress we have made against our priorities.

Jim: First I will.

Talk about safety.

Jim: Across the company are people that are galvanized to improve our safety performance and achieve our goal of being fatality and injury free.

Jim: 2020 for sort of the completion of the DSS plus group wide safety audit and the recommendations, which focus on our risk management processes and establishing a consistent safety first culture across our group operations.

Jim: And determined that we improve our safety performance this year and believe the detailed unit specific roadmaps developed from the audit will support our efforts to do so.

Jim: Reflecting on our strategic progress in 2020 full we have achieved a great deal.

Jim: We have faced challenges as we all know the cycle has not been in our favor yet. Despite those headwinds we have delivered resilient results $2 billion of investable cash flow generation in this environment speaks to the progress we have made as a company.

Jim: This has allowed us to invest counter cyclically and reward our shareholders at the same time.

Jim: Everyone that Arcelormittal should take Brian this.

Jim: Growth is an increasingly important theme for our <unk>.

Jim: This year, we will start to see the benefits of the organic investments we've been making over the last few years.

Jim: We expected structural EBITDA impact from our portfolio of high return strategic projects now stand at $1 9 billion.

Jim: $400 million of this is due to be captured in 2025 with a further $600 million due in 2026.

Jim: Our recently completed projects the Vega Cold Mill complex in Brazil, the new Hot strip mill in Mexico, and the one gigawatt renewable project in India are performing well.

Jim: The fact that these projects are delivering new incremental EBITDA, we expected should instill confidence that our strategic Capex will add significant structural earnings and cash flow benefits.

Jim: Similarly, the assets that we've acquired in recent periods, including Persimmon, Brazil, Texas Hvis facility undertaken valor rack are all performing well, adding further structural earnings and cash flow growth.

Its assignments on slide 23 of that presentation.

Calling some opening remarks and with that you're enjoying we know we will move directly to the Q&A session. So if you would like to ask a question. Please do press star one one on Youll keep had to join the queue. So that instruction is SAR one one due during the Q&A queue.

Jim: This growth supports higher shareholder returns.

Jim: Over the past four years, our dividend has grown at a compound rate of 16%.

And with that I will hand over the call to it.

Yeah.

Jim: Reflecting our confidence in the outlook of our company.

Speaker Change: Thanks, Danielle and welcome everyone and thank you for joining today's call.

Jim: On top of our dividends, we have returned significant cash to our buybacks, allowing us to reduce our share count by 37% over the last four years, our rate unmatched by any of our peers.

Speaker Change: Before I ask Jim to comment on our financial performance I want to spend a moment.

Speaker Change: <unk>, we have made against our priorities.

Speaker Change: First I want to talk about safety.

Speaker Change: Across the company our people are galvanized to improve our safety performance and achieve our goal of fatality and injury free.

Jim: Our policy and capital return intentions are clear.

Jim: On the team of <unk> I want to highlight that our <unk> absolute carbon emissions today are approximately half the level of 2018.

Speaker Change: 2019, full so are the completion of the DSS plus group wide safety audits and the recommendation, which focus on our risk management processes.

Speaker Change: Tableau Shing, a consistent safety first culture across all group operations.

Jim: Much of this has been the result of our portfolio optimization and the steps that we have taken to shape our business around our most competitive assets.

Speaker Change: And determined that we improve our safety performance this year and leave the detailed unit specific roadmaps developed from the Auditor will support our effort to do so.

Jim: As we move forward, we are determined to follow a transition pathway that is economic and ensures that we remain competitive.

Speaker Change: Okay.

Speaker Change: Reflecting our strategic progress in 2024.

Jim: When it makes sense, we are making investments.

Speaker Change: We have achieved a great deal.

Jim: <unk> and the revamp of our <unk> and <unk> are both good examples.

Speaker Change: We have faced challenges as we all know the cycle has not been enough fever, yet despite the headwinds we have delivered resilient results $2 billion of simple cash flow generation in this environment speaks to the progress we have made as a company.

Jim: These economic projects support our growing offering of low carbon solutions to our customers under our <unk> brand.

Jim: It is critical that we see Europe make swift progress in providing a policy environment that appropriately incentivize the further investments required to accelerate decarbonization in Europe.

Speaker Change: This has allowed us to invest counter cyclically and reward our shareholders at the same time.

Speaker Change: Everyone at Ultimate Felicitate.

Speaker Change: So it should take pride in the business.

Speaker Change: Growth is an increasingly important theme for a minute.

Jim: As I conclude my message is quite simple.

Speaker Change: This year, we will start to see the benefits of organic investments, we've been making over the last few years.

Jim: We are a transformed business.

Jim: We have the best talent.

Jim: We have excellent market positions in all of the attractive geographies, including a unique exposure to India and we have a reputation for quality and innovation that is unmatched by any of our peers.

Speaker Change: As expected structural EBITDA impact from our portfolio of high return strategic.

Speaker Change: Strategic projects now stand at $1 9 billion.

Speaker Change: $400 million of this is due to be captured in 2025 with a further $600 million.

Jim: Tier one balance sheet is a strategic asset asset that underpins, our consistent growth and continued value creation.

Speaker Change: Due in 2026.

Speaker Change: Our recently completed projects.

Jim: I would like to take this opportunity to thank all our employees customers and shareholders for placing your trust in us.

Speaker Change: <unk> <unk> complex in Brazil.

Speaker Change: <unk>, Mexico, and the one gigawatt renewable project in India are performing well.

Jim: With that I will now hand, it over to Jim <unk> to talk more about our financial performance.

Speaker Change: The fact that these projects are delivering new incremental EBIT.

Speaker Change: We expect it should instill confidence that our strategic Capex will add significant structural earnings and cash flow benefits.

Jim: Thank you Anita and good afternoon, everyone.

Jim: We delivered a resilient performance last year, despite the challenging market backdrop.

Speaker Change: Similarly, the assets that we've acquired in recent periods, including <unk> in Brazil.

Jim: EBIDTA was seven 1 billion for the year, which translates to a $130 of EBITDA per ton shipped.

Speaker Change: Texas <unk> facility undertaken <unk>.

Speaker Change: Are all performing well, adding further structural earnings and cash flow growth.

Jim: This is almost double the level of previous cycle lows showing that the business and its earning capacity has a structurally transformed.

Speaker Change: This growth supports higher shareholder returns.

Speaker Change: Over the past four years, our dividend has grown at a compounded rate of 16%.

The benefits of our optimized asset base and are relatively diversified exposures have also seen our results show significantly more stability than peers.

Speaker Change: Reflecting our confidence in the outlook of our company.

Jim: This was particularly evident in the fourth quarter.

Speaker Change: On top of our dividend, we have returned significant cash to our buybacks, allowing us to reduce our share count by 37% over the last four years.

Jim: Adjusted net income of $2 3 billion.

Jim: In 2024 represents a $4 four return on the book value of equity, which now stands at six to $4 per share.

Speaker Change: Great unmatched by any of our peers.

Speaker Change: Our quality and capital return intentions are clear.

Jim: Return on capital employed in 2024, 6%.

Jim: Considering where we are in the cycle I believe bulk the fingers are commendable.

Speaker Change: On the team of <unk>.

Speaker Change: I want to highlight that our assortments of absolute carbon emissions today are approximately half the level of 2018.

Jim: Moving on to cash flow, we generated over 2 billion of investable cash flow in 2024, bringing the total to 22 1 billion since 2021.

Speaker Change: Much of this has been the result of our portfolio optimization and the steps that we have taken to shape our business around our most competitive assets.

Jim: Last year we.

Jim: <unk>, one 3 billion and the high return and strategic growth projects that are data described we retired $1 7 billion to shareholders, including a record share of 6% of our outstanding shares.

Speaker Change: As we move forward, we are determined to follow a transition pathway that is economic and ensures that we remain competitive.

Speaker Change: When it makes sense, we are making investments <unk> hard to revamp over two years now.

Jim: We invested a net.

Jim: Point 6 billion M&A, including of course, our 28% stake in <unk>.

Speaker Change: Are both good examples.

Speaker Change: These economic projects.

Jim: Our performance provides strong evidence that arcelor mittal can deliver value through all aspects of this deal cycles and is testament to the progress we have made in recent years.

Speaker Change: Our growing offering of low carbon solutions to our customers under our ex Bret.

Speaker Change: It is critical that we see Europe make swift progress in providing a quality environment that appropriately incentivize further investments required to accelerate decarbonization in Europe.

Jim: I believe this is reflecting the dividend increase to 55 cents per share.

Jim: It is a 10% increase on last year's dividend.

Jim: And bringing the total increase since 2020 to over 80%.

Speaker Change: As I conclude.

Speaker Change: My message is simple.

Speaker Change: We are a transformed business we have the best talent.

Jim: Finally on the outlook, we are forecasting slightly positive apparent demand growth.

Speaker Change: We have excellent market positions in all of the attractive geographies, including a unique exposure to India and we have a reputation for quality and innovation that is unmatched by any of rvs.

Jim: And are well positioned to benefit from any recovery.

Jim: We are confident we will continue to generate positive cash flow this year and beyond.

Jim: Which will continue to be allocated via our establish capital return policy.

Speaker Change: Our tier one balance sheet is a strategic asset that underpinned, our consistent growth and continued value creation.

Jim: With that Danielle I believe we can move to the furnace.

Jim: Yeah.

Jim: Great.

Jamie: Thank you Jamie So we will take our first question from Ephraim at Citigroup.

Speaker Change: I would like to take this opportunity to thank all our employees customers and shareholders for placing your trust in us.

Jim: Please go ahead of them.

Jamie: Thank you three quick questions firstly.

Speaker Change: With that I'll now hand, it over to Jen Reno talk more about our financial performance.

Jamie: The plant non green <unk> plant in Calgary to comment and of 27.

Jamie: Does that mean anything for the second year at Calvert, either in terms of accelerating the timeline.

Speaker Change: Thank you and good afternoon, everyone.

We delivered a resilient performance last year.

Jamie: Or delaying in terms of project complexity can sequencing et cetera.

Speaker Change: It's a challenging market backdrop.

Jamie: First one secondly on Capex.

Speaker Change: EBIDTA was $7 1 million for the year.

Jamie: Lastly on the strategic growth of one three to $1 5 billion of new.

Speaker Change: Which translates to a $130.

Jamie: New projects also coming into the pipeline like the electrical steel plant.

Speaker Change: With caution.

Speaker Change: This is almost double the level of previous cycle lows.

Jamie: Should we expect it to remain at these kind of levels beyond 2026, as well as long as our balance sheet remains under good and on the <unk> 4 billion of Decarbonization Capex. After the chairman's open letter of the Ft is it also right the thing that it would remain at.

Speaker Change: And at the business and its earning capacity and restructure on its Paul.

Speaker Change: The benefits of our optimized asset base in a relatively diversified exposures have also seen our result show significantly more speculative mtn's.

Jamie: For the foreseeable future.

Jamie: Future at these levels unless there are major changes in the form of some regulatory support and <unk>.

Speaker Change: This was particularly evident in the fourth quarter.

Jamie: Italy slightly pedantic question of the volume increase in Liberia from incremental 10 million tons to 15 million tons why is the EBITDA potential only increasing from.

Speaker Change: Adjusted net income of $2 3 billion in 2024 represents a $4 four return on the book value of equity, which now stands at $64 per share.

Jamie: By about $100 million from 350 has the underlying assumption on the cost or pricing that changed as well. Thank you.

Speaker Change: Return on capital employed in 2024, 6%.

Speaker Change: Considering where we are in the cycle I believe bulk fingers are commendable.

Speaker Change: Okay, Hi, <unk> nice to hear from you.

Speaker Change: A lot of questions, but let me take a stab at them.

Speaker Change: Moving on to cash flow, we generated over 2 billion of investable cash flow, which was called on training for bringing the total to $21 billion since 2021.

Speaker Change: So in terms of Calvert, Alabama look I think the first headline is that we are in the process of commissioning a brand new electric furnace. This is the most technologically advanced electric furnace in the United States with Caster and Hot strip mill.

Speaker Change: Last year we.

Speaker Change: <unk>, one <unk> billion and the high return strategic growth projects that I just described.

Speaker Change: Capability of producing exposed automotive grades.

Speaker Change: We retired $1 7 billion to shareholders. According to rapid change of 6% of our outstanding shares.

Speaker Change: So.

Speaker Change: I'll remind you it is game changing it just cutting edge.

Speaker Change: It's got a good cost base and further strengthens our strong franchise that we have in the NAFTA region, we're building on that.

Speaker Change: And we invested a net.

Speaker Change: $6 billion in M&A, including of course, our 28% stake in <unk>.

Speaker Change: Within electrical steel announcement. This morning that we made this is going to be 100% owned by <unk>.

Speaker Change: Our performance provides strong evidence that arcelor mittal can deliver value through all effects from this new cycle is.

Speaker Change: It's another world class cutting edge electrical steel kipp.

Speaker Change: Is testament to the progress we have made any sense.

Speaker Change: Facility for non grain oriented steels for the premium automotive.

Speaker Change: I believe this is reflecting the dividend increase.

Speaker Change: Demand requirements.

Speaker Change: <unk> per share.

Speaker Change: Really good gauge capability and excellent quality characteristics.

Speaker Change: A 10% increase over last year's dividend.

Speaker Change: We are also looking at a second EES and your question was does the electrical steel facility delay that.

Speaker Change: And bringing the total increase since 2012% to over 80%.

Speaker Change: Finally on the outlook, we are forecasting slightly positive apparent demand growth.

Speaker Change: I don't believe it materially delayed secondly, yes, I think what we're focused on is commissioning the first es and then utilizing the resources that we have for the first GDS.

Speaker Change: And are well positioned to benefit from any recovery.

Speaker Change: We are confident we will continue to generate positive cash flow this year.

Speaker Change: In staffing the project for the second year, So that's fundamentally the plan.

Speaker Change: And the ops.

Speaker Change: Which will continue to be allocated via also establish capital return policy.

Speaker Change: We're commissioning the first year, bringing another world class electrical steel facility in terms of electrical steels at Calvert and then we'll start on the second year.

Speaker Change: With that then.

Speaker Change: A live webcast.

Speaker Change: Joe will be financed.

Speaker Change: In terms of the medium term capex in <unk>.

Speaker Change: Great.

Speaker Change: Thank you Dan.

Speaker Change: We will take our first question from effort at Citigroup.

Speaker Change: Fundamentally.

Speaker Change: It's a great question, our focus remains to keep the.

Speaker Change: I think I had it for them.

Speaker Change: Thank you three quick questions. Firstly, I'll put the plant <unk> plant in Calgary comments end of 'twenty seven.

Speaker Change: Overall, capex envelope between four and a half to $5 billion, that's really the focus and we have the ability to modify where we spend our capex right. So you saw in the third quarter, We announced we are not going ahead with one of our project in Brazil.

Speaker Change: Does that mean anything for the second yes, Mike Calbert either in terms of accelerating the timeline.

Speaker Change: Or <unk>.

Speaker Change: In terms of project competitive can sequencing et cetera to first fund.

Speaker Change: Instead, we substitute that with the electrical steam project and Calvert, Alabama.

Speaker Change: It can be on capex, especially on the strategic growth of one 5 billion.

Speaker Change: So similarly, I think you can expect developments like that where we see the market is changing or we can be more agile and dynamic in allocating where we want to invest our capital and that also applies to <unk> I'm not suggesting that all of this growth Capex will go into <unk>, but perhaps based on acceleration of policy regulate.

Speaker Change: New projects also coming in the pipeline like the electrical steel plant.

Speaker Change: Should we expect it to remain at these kind of levels beyond 2026, as well as long as the balance sheet remains under geared and on the <unk> 4 billion.

Speaker Change: He got amortization Capex. After the chairman has opened the ESP is it will go right to think that it would remain at.

Speaker Change: Issue that we want.

Speaker Change: And in case that happens, we could have more than just $300 million of capex per year.

Speaker Change: For the fourth year.

Speaker Change: Future these levels unless there are major changes.

Speaker Change: In terms of Liberia, I look that's a very good question, we have not changed our long term assumptions.

Speaker Change: In the form of regulatory support.

Speaker Change: Totally pedantic question of the volume increase in Iberia from <unk>.

Speaker Change: Iron ore and they remain conservative, especially compared to spot today.

Speaker Change: Incremental 10 million tons to 15 million tonnes, while the EBITDA potential only increasing from <unk>.

Speaker Change: The reason why you don't have the same delta I mean, you have a similar delta in terms of volume growth.

Speaker Change: By about $100 million from 350 has the underlying assumption on the cost or pricing that changed as well. Thank you.

Speaker Change: Reason why it is slightly less is primarily because of quality considerations right. The 5 million tons of the DSO product. So it has a much lower fee than the sinter feed product that we will make and so as we blend we get.

Speaker Change: Okay I have from nice to hear from him soon.

Speaker Change: Questions and let me take a stab at them.

Speaker Change: In terms of Calvert, Alabama.

Speaker Change: Some revenue uplift.

Speaker Change: The first headline is that we earned gross.

Speaker Change: So maybe to explain more theory today, the concentrate can do 15 million tonnes of concentrate in 5 million ton of DSO. The original plan was we lose a 5 million ton of DSO and now the new plan is that we blend it and we have a 20 million tonne incentive fee product.

Speaker Change: Commissioning are brand new.

Speaker Change: This is the most technologically advanced electric furnace.

Speaker Change: In the United States with Gastro and Hot strip mill.

Speaker Change: With the capability of producing exposed automotive grades so.

Speaker Change: And I'll remind this is game changing its cutting edge.

Speaker Change: And so the Delta is obviously there is a positive.

Speaker Change: <unk> got a good cost base and further than our.

Speaker Change: Our strong franchise that we hadn't NAFTA region, we're building on that.

Speaker Change: On the volume side offset by some of the changes on the revenue side.

Speaker Change: With electrical steel announcement this morning that we made.

Speaker Change: So we can provide you with more detail.

Speaker Change: 100% owned by <unk>.

Speaker Change: On the math behind that.

Speaker Change: It's another world class cutting edge electrical steel.

Speaker Change: Thank you that's clear.

Speaker Change: The facility for non grade.

Speaker Change: Great. Thanks.

Speaker Change: The steel for the premium automotive.

Speaker Change: We will move to take the next question from Patrick at Bank of America.

Speaker Change: Demand requirements with really good gauge capability and excellent quality characteristics.

Speaker Change: Please go ahead Patrick.

Thanks very much for the question.

Speaker Change: We are also looking at a second yeah and your question was does the electrical steel facility deliver.

Speaker Change: Im sure you guys knew this was coming.

Speaker Change: If we saw kind of a re emergence of a threat.

Speaker Change: Tariffs on Canada, and Mexico from the U S.

Speaker Change: I don't believe it jewelry delays secondly, yes, I think what we're focused on and commissioning.

Speaker Change: How are you guys thinking about the potential impacts on upon dofasco in Mexico.

Speaker Change: And then utilizing the resources that we have for the first year.

Speaker Change: Thanks.

Speaker Change: And staffing the project for the second year.

Speaker Change: Sure.

Speaker Change: Uh huh.

Speaker Change: So that's fundamentally the ban.

Speaker Change: So yeah, Andrew we were expecting this question to come soon.

Speaker Change: We're commissioning the first year, bringing another world class electrical steel facility in terms of electrical steels that Calvert and then we will start on the second.

Speaker Change: Thank you for asking it.

Speaker Change: The high level first or the global perspective, and you guys. All know this better than us the significant global overcapacity.

Speaker Change: In terms of the medium term capex and indeed.

Speaker Change: And so any action to tackle that is welcome.

Speaker Change: So fundamentally.

Speaker Change: It's a great question, our focus remains to keep the.

Speaker Change: We see similar actions underway in the European marketplace.

Speaker Change: Overall, capex envelope between four and a half to $5 billion, that's really the focus and we have the ability to modify and where we spend our capex.

Speaker Change: Malaria in India than had been actions already taken in Brazil, there's discussion for potentially some more nothing has really materialized and.

Speaker Change: We see similar issues in the United States.

Speaker Change: Capex right. So you saw in the third quarter, we announced we are not going ahead with one of our project in Brazil.

Speaker Change: In terms of specifically the tariffs against Canada, or Mexico, we've been there before.

Speaker Change: Instead, the substitute that with the electrical steel project and Calvert, Alabama.

Speaker Change: I think if you remember in 2018 2019, when <unk> was imposed.

Speaker Change: It is.

Speaker Change: So similarly, I think you can expect developments like that where we see the market is changing or we can be more agile and dynamic in allocated where we want to invest our capital and that also applies to <unk>.

Speaker Change: Tariffs that came from.

Speaker Change: There was tariffs on Canadian steel.

Speaker Change: Mexican steel.

Speaker Change: And <unk>.

Speaker Change: Roughly it cost us about $100 million per quarter.

Speaker Change: I'm not suggesting that all of this growth Capex will go into <unk>, but perhaps based on acceleration of Bulks deregulation that we want and in case that happens, we could have more than $300 million capex.

Speaker Change: But this was more than offset by revenue.

Speaker Change: So if you look at the revenue impact of the spark greater I'm, not suggesting that that would happen again in the spirit of time the security one mitigating factor would be the revenue impact on some of these terrorists secondly, I would just add that I talked about the caliber yes.

Speaker Change: Capex per year.

Speaker Change: In terms of Liberia, I look that's a very good question, we have not changed our long term assumptions.

Speaker Change: Iron ore and they were making.

Speaker Change: Especially compared to plus a day.

Speaker Change: So you heard about that so we have much more.

Speaker Change: The reason why you don't have the same delta similar does in terms of volume growth.

Speaker Change: We should domestically produce for sure melted and poured so thats another mitigating factor, but fundamentally I guess the last point I would make is that.

Speaker Change: And the reason why it is.

Speaker Change: Slightly less is primarily because of quality considerations described the 5 million tons of the DSO product.

Speaker Change: These discussions remain uncertain.

Ah.

Speaker Change: So it is a much lower fee than the incentive fee program that we will make.

Speaker Change: What will end up happening.

Speaker Change: But the fundamental focus that we have as an organization is really to strengthen the NAFTA trading block or we see a lot of imports that are coming into Mexico, and Canada and to the extent that the desire is fundamentally to strengthen NAFTA that will be a net positive and.

Speaker Change: And so as we blend we get.

Speaker Change: Some revenue uplift.

Speaker Change: So maybe to explain theory today, the concentrate can do 15 million tonnes of concentrate in $5 million on a DSO. The original time was we lose a 5 million ton of DSO.

Patrick: And excuse me Patrick.

Patrick: Names mixed up so thank you for your question.

Speaker Change: And now the new plan is that we blend it and we have a 10 million ton sinter feed product.

Problem. Thank you chip.

Patrick: Thank you.

Patrick: Great. Thanks, Patrick So we will move now to a question from Andrew at UBS.

Speaker Change: And so the Delta is obviously those deposits.

Speaker Change: Uh huh.

Speaker Change: UBS. Please go ahead.

Speaker Change: On the volume side offset by some of the changes in revenue.

Patrick: Okay.

Patrick: I can see why it makes sense.

Speaker Change: We can provide you with more detail.

Patrick: Just to follow up on that final question I guess.

Speaker Change: On on the math behind that.

Patrick: Just to spell out the actual volume of flows into the U S. Can you just give us the numbers around what's coming from Mexico, obviously, the spread large slab volumes could you quantify that and.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: So I will move to take the next question from Patrick at Bank of America. Please.

Patrick: And then the other products and also how much is going from the fast governance.

Speaker Change: Please go ahead Patrick.

Speaker Change: Thanks very much for the question.

Patrick: So anything from Europe, all for sale.

Speaker Change: I'm sure you guys knew this was coming.

Patrick: Give us some volume numbers will be helpful. And secondly, just don't be electrical steels can you just talk a little bit about the market for downgrade orientate it like how you see.

Speaker Change: If we saw kind of a reemergence of a threat to us.

Speaker Change: On Canada, and Mexico from the U S.

Speaker Change: How are you guys thinking about the potential impact on dofasco in Mexico.

Patrick: That growing in the coming years.

Patrick: What is there any of the supply coming down the pipe.

Speaker Change: Thanks.

Tight do you expect that market to be by the time Best Mill comes through and can you just talk for a little bit.

Speaker Change: Sure.

Speaker Change: So yeah, and we were expecting this question to come soon.

Patrick: Market situation that please thanks.

Thank you for asking it.

Speaker Change: Look the high level first our global perspective.

Speaker Change: Okay, great. Thank you Andrew I will talk about electrical steels, and then I'll see if I can provide you with any color on your volume requirements for volume question.

Speaker Change: And you guys are better than us the significant global capacity.

Speaker Change: And so any action to tackle that is welcome.

Patrick: In terms of the non grid.

Speaker Change: We see similar actions underway in European marketplace.

Speaker Change: Yes.

Speaker Change: You add to the electrical steel market noise as you can call it that.

Speaker Change: In India, there have been actions already taken in Brazil, there's discussion for potentially Simona.

Speaker Change: Uh huh.

Speaker Change: Today the market is in deficit.

Speaker Change: She realized and and.

Speaker Change: A.

Speaker Change: Significant amount of the supplies through imports.

Speaker Change: We see similar issues in the United States in terms of specifically the tariffs against Canada, Mexico, we've been there before.

Speaker Change: If you look at our volume, it's about 150000 tons at.

Speaker Change: It basically covers in pork volume that's the first 0.2nd point I would make is that the market continues to grow.

Speaker Change: I think if you remember in 2018 2019 <unk> imposed.

Speaker Change: It is.

Speaker Change: And we should not think of this as just an electrical.

Speaker Change: Uh huh.

Speaker Change: Terrorists came from.

Speaker Change: Cause we should think of this as a market, which is electrical cost plus hybrids because electrical steels that go into both vehicles.

Speaker Change: There was tariffs on Canadian steel.

Speaker Change: Mexican steel.

Speaker Change: And <unk>.

Speaker Change: Our fleet cost so that's about $100 million per quarter.

Speaker Change: And so there's still strong growth in hybrid hybrid vehicle demand and will be catering to that the third point I would make is that yes. There are some announcements of new capacity that you really need to look at that capacity and what is the capability of that capacity to deliver the high quality premium automotive.

Speaker Change: But this was more than offset by revenue.

Speaker Change: Right. So if you look at the revenue thus far in <unk>.

Speaker Change: Suggesting that that would happen again in the spirit of them done.

Speaker Change: The security one mitigating factor would be the revenue impact some of these terrorists.

Speaker Change: Material and that I think is actually much shorter or much less than the overall market situation. So in that sense. I think we have a unique product offering with a very high quality capability and the market is there for our product.

Speaker Change: I would just add that I talked about the caliber yes.

Speaker Change: So you heard about that so we have much more.

Speaker Change: <unk>, which are domestic produce which are melted and board. So that's another mitigated.

Speaker Change: Alright.

Speaker Change: Mentally I guess the last one would be again.

Speaker Change: But generally no.

Andrew: Thank you, operator, and Hi, Andrew Andrew as you know, we don't typically disclose the volumes.

These discussions remain uncertain.

Speaker Change: Uh huh.

Speaker Change: What will end up happening, but the fundamental focus that you have as an organization is really presented the NAFTA trading blocks or we see a lot of imports coming into Mexico, and in Canada and to the extent that the desire fundamentally to strengthen NAFTA that will be positive.

Andrew: From Mexico into the U S and vice versa, and Thats why we are trying to be helpful by Reconfirming.

Andrew: The cost impact of African saw back earnings for 2018.

Andrew: When we look at the close today.

Andrew: Similar and that's why we continue to.

Patrick: And excuse me Patrick.

Andrew: The $100 million that you talked about on the cost side and then of course, we will see what happens on the auto side of your question on the revenue side.

Speaker Change: Our names mixed up.

Patrick: Thank you for your question.

Patrick: No problem. Thank you did you.

Patrick: Thank you.

Speaker Change: Thanks, Patrick told me now to a question from Andrew <unk>.

Andrew: Okay fair enough. Thank you.

Speaker Change: Please go ahead Andrew.

Patrick: Okay.

Speaker Change: Great. Thanks, Andreas I will.

Patrick: Thanks.

Patrick: Yeah makes sense.

Speaker Change: Maybe perhaps next question from Timna at Wolfe.

Patrick: Just a follow up on that question.

Speaker Change: Wolfe research.

Speaker Change: Got it.

Patrick: Just to sell our actual full year flows into the U S. Could you just give us the numbers around whats coming from Mexico. Obviously this is a large slot volumes could you quantify that and.

Speaker Change: Actually I think Timna might've, just dropped off the call. So we'll move directly to the next question, which we will take from Tristan.

Patrick: And then any other products also how much going from the first Kevin said.

Speaker Change: <unk> BNP.

Patrick: The U S anything for Europe pulp the sale.

Speaker Change: Interesting.

Speaker Change: Yes, hi, Thank you for taking my questions I have two first on the strategic projects. So this year you expect a 0.4 billion EBITDA uplift.

Patrick: Give us some volume numbers with helpful.

Patrick: And secondly, just some of the electrical sales can you just talk a little bit about the market the downgrade orientate it like how do you see.

Patrick: That growing in the coming years.

Speaker Change: From Vega, India in Liberia, but you also have three projects I think that we're supposed to be wrapping up now.

Patrick: What is there any supply coming down the pipe.

Patrick: Try to exit that market to be bought at a time.

Suraj: Martech Barra Mansa suraj.

Speaker Change: And now they're due to be completed in 2025. So first can you explain a bit the delay and why you don't expect at least some contribution from those three projects this year already.

Speaker Change: I'm sorry Edwin.

Patrick: Could you talk <unk>.

Speaker Change: Market situations.

Speaker Change: Thanks.

Speaker Change: Okay, great. Thank you Andrew.

Speaker Change: I will talk about electrical steels, and then I'll see if I can provide you with any color on your voting requirements.

Kristen: Thank you Kristen.

Kristen: Very important question so just on the high level overview.

Speaker Change: Your question.

Speaker Change: In terms of the non grades.

Oriented electrical steel market noise since you could call it that.

Kristen: We have we expect about $100 million of EBITDA contribution from these projects and so instead of receiving that are getting that EBITDA contribution in 2025 that has been moved between 2006, and therefore, we expect $400 million EBITDA lift in 2025, and now we expect $600 million uplift.

Speaker Change: Uh huh.

Speaker Change: Today the market is in desktop visits.

Speaker Change: E <unk>.

Speaker Change: Significant amount of the slides or invoice.

Speaker Change: So if you look at our volume it's about 150000 tons.

Speaker Change: Basic and policies pork volume that's the first 0.2nd point I would make is that the market continues to grow.

Kristen: In 2026. So these are three different projects.

You should not think of this as just an electrical.

Kristen: So Marty is an electrical steel facility in Europe.

Speaker Change: Cause you should think of this as a market, which is electrical cost plus hybrid because electrical steel go into both vehicles and so there is still strong growth and hybrid hybrid vehicle demand and will be catering to the third point I would make is that yes. There are some announcements of new capacity.

Kristen: Which we are building.

Kristen: There were various reasons for delay.

Kristen: Predominantly they had to do with equipment supply.

Kristen: And also I would say lack of experience in doing large scale projects.

Kristen: In Europe, we have not been investing I assume you had a project team and engineers, but there is a lack of experience. What we see is that when you have a project team, which has done when project. The next project flow is much more smoothly.

Speaker Change: But you really need to look at that capacity and what is the capability of our capacity to deliver the high quality premium automotive.

Speaker Change: Julia.

Speaker Change: And that I think is actually much shorter or much less.

Kristen: Yeah.

Kristen: And Sarah Xu we ran into.

Speaker Change: The overall market situation. So in that sense I think we have a unique product offering with a very high quality capability.

Kristen: Such as mining difficulties, which has delayed that project.

Kristen: Biomass so again as is.

Speaker Change: The market's Suzanne Park.

Speaker Change: But generally no.

Kristen: Similar issues as <unk> equipment as well as lateral project experience at the same time in Brazil, which is very interesting for us the flat operation delivered the Vega project on time and on budget and that has ramped up in record time actually faster than what we had anticipated or which wasn't in our.

Andrew: Yes. Thank you operator, Andrew Andrew as you know it all typically disclose the volumes.

Andrew: <unk> com and on that which is U S and vice versa.

Andrew: We are trying to be helpful.

Andrew: The cost impact that we saw earnings calls.

Kristen: Project approval process. So it's been very interesting learning for us.

Andrew: When we look at the close similar and that's why we show.

Andrew: Sure.

Kristen: We see similar geographies similar.

Andrew: The $100 million.

Kristen: Similar teams perform differently and as a result.

Andrew: <unk> talked about on the cost side, and therefore us we'll see what happens on the auto side of your question on the revenue side.

Kristen: Just in December we have created a new global projects team.

Andrew: Okay fair enough. Thank you.

Kristen: At the central level and as an individual khobar tunes.

Kristen: Spearheading that to bring in our global expertise to bear because we have the expertise fundamentally are sort of knows how to do projects, we have been delivering projects on time and on budget, but its not uniform.

Andrew: Great. Thanks, Andreas I will.

Andrew: We've now fixed question from.

Andrew: Wolfe research.

Andrew: Got it.

Speaker Change: Actually I think Timna might've, just dropped off to go around so we'll move directly to the next question, which we will take from Tristan.

Kristen: And the task is really to bring that capability across the organization. So we don't have further projects, which kitchenaid. So.

Kristen: So I hope that helps answer the question.

Andrew: Excellent compete.

Speaker Change: Yes, that's that's very clear and maybe just a quick follow up on that on the projects that I don't see the doubling of hei capability and takes us anymore. In the release is that a project that you've definitively dropped or is it tied to <unk> carbon Europe, so any comment there.

Andrew: Interesting.

Speaker Change: Yes, hi, Thank you for taking my questions I have two first on the strategic projects. So this year you expect a 0.4 billion EBITDA uplift from Vega, India in Liberia, but you also have three projects I think that we're supposed to be wrapping up now.

Speaker Change: Yeah. So it's a good question and I'm glad you asked it I think the projects that we have put in our presentation.

Speaker Change: Martech Barra Mansa Road Shaw.

Speaker Change: They're due to be completed in 2025. So first can you explain the delay why you would expect at least some contribution from those three projects this year already.

Speaker Change: In the.

Speaker Change: Medium term pipeline, so they're not necessarily in the long term pipeline, we have a few others maybe.

Speaker Change: Just to talk about Brazil for one where we've talked about expanding our finishing operations as this quarter Rolling and Gal. We're also thinking that since we are slot long to do hot strip mill and Thats not so so there are numerous examples in Liberia, we have a very good resource body and excellent resource body, where you can actually do more in Liberia.

Kristen: Thank you Kristen.

Speaker Change: Very important question.

Speaker Change: So just on the high level overview.

Speaker Change: We had we expect about $100 million EBITDA contribution from these projects and so instead of receiving that are getting that EBITDA contribution.

Speaker Change: So the idea now is 20 million tonnes judge where we are figuring out what is the economics based on the long term price of iron ore and then decide if we want to continue to grow but those are all options that we have in Texas I think what we have.

Speaker Change: <unk> five has been muted.

Speaker Change: Thanks.

Speaker Change: Therefore, we expect over a million dollar EBITDA between two five and now we expect $600 million uplift.

Speaker Change: In 2026.

Speaker Change: So three different projects.

<unk> done is we have focused our efforts on on Calvert right. Now. So you heard me talk about the projects in Calgary, the electrical steel line the new yes.

Speaker Change: So Marty is an electrical steel facility in Europe.

Speaker Change: Which we are building.

Speaker Change: There were various reasons for delay.

Speaker Change: So after all of that we would reevaluate Texas.

Speaker Change: Predominantly they had to do with equipment supply.

Speaker Change: Correct. It's also linked to the progress on European decoupled, So it's not that it's not there.

Speaker Change: And also I would say lack of experience in large scale projects right.

Speaker Change: In the foreseeable future is just not there in the medium term.

Speaker Change: In Europe, we have not been investing so we had a project team and she is that there is an inaccurate.

Speaker Change: Alright, Thank you and if I could just squeeze one more on project for sure just the.

Speaker Change: The lack of experience what we see is that when you have a project team, which has done project. The next project flow is much more lumpy.

Speaker Change: The NGL line in Calgary.

Speaker Change: It seems the scope of the project is much larger to just an electrical line that can be a 400 million capex. So I see the total capex of $1 two as it includes a cold rolling Nielsen.

Speaker Change: And so we ran into.

Speaker Change: Such as mining difficulties.

Speaker Change: Nathan project.

Speaker Change: Byron So again as is.

Speaker Change: And the other equipment. So can you explain the capacity of the other equipment and explain the rationale of the investment and does that replace existing capacity as well and how should we think about it.

Speaker Change: Similar issues as mosaic equipment as well as that project experience.

Speaker Change: At the same time in Brazil, which is very interesting for us.

Speaker Change: Heart operation digitally.

Speaker Change: So it's it's all incremental capacity.

Speaker Change: Our next project on time and on budget and that has ramped up in record time machine faster than what we had anticipated or which wasn't in our.

Speaker Change: So there's no replacement Theres no call Rolling Mill line for.

Speaker Change: Non grain oriented steel products. So this is really electrical steel line, perhaps you're comparing it to the <unk> facility, which is roughly.

Speaker Change: Project approval process. So it's been very interesting learning from us for us where we see similar geographies.

Speaker Change: The amount recorded a bit more than that but let's use that as a reference.

Speaker Change: Similar teams perform differently and as a result.

Speaker Change: We just in December.

Speaker Change: So the two or three key differences.

Speaker Change: <unk> is a new global projects team.

Speaker Change: First and most important is.

Speaker Change: At the central level the individual <unk>.

Speaker Change: In the U S. It's a greenfield site.

Speaker Change: Adding that to bring in our global expertise to bear.

Speaker Change: Right. So we have to do the full construction of the facility.

Speaker Change: Because we have the expertise fundamentally are certainly knows how to do projects.

Speaker Change: The whole building.

Speaker Change: In <unk>, we were able to utilize an existing building.

Speaker Change: Every projects on time and on budget.

Speaker Change: So construction costs are quite expensive and that that adds number two and.

Speaker Change: Paul.

Speaker Change: And the task is really to bring that capability across the organization. So we don't have further projects, which get Janine so.

Speaker Change: Importantly.

Speaker Change: The line in the U S has even more capability than the line in Europe.

Speaker Change: So I hope that helps answer your question.

Speaker Change: Yes.

Speaker Change: That's very clear maybe just a quick follow up on that one the projects that I don't him the doubling of API capability takes us anymore and there really is that a project that you definitely dropped or is it tied to <unk> carbon Europe any comments there.

Speaker Change: And that is a market function, we see that the U S market is moving to higher grades.

Speaker Change: For this primarily because in the SUV segment in other and other unique characteristics of the North American marketplace.

Speaker Change: And so you need more capable equipment more equipment more rolling capability and that obviously adds to costs and the third is <unk>.

Speaker Change: Yeah.

Speaker Change: Yeah. So it's a good question and I'm glad you asked it I think the projects that we have put in our presentation.

Speaker Change: Obviously construction costs manpower costs steel costs.

Speaker Change: In the <unk>.

Speaker Change: Medium term pipeline, so they're not necessarily long term pipeline, we have a few others.

Speaker Change: And other costs are higher in the U S than they are in Europe. So those are the primary three factors when you make your comparison on electrical steel line in France, and then versus the ones that we're building in Alabama.

Speaker Change: Nice to talk about Brazil for one where we've talked about expanding our fishing operations as this court ruling and Gal.

Speaker Change: We're also thinking that since you're not long lasting.

Speaker Change: Alright, that's very clear thank you.

So so we received examples in Iberia, we have a very good resource body and extra resource body, where you can actually do more in Iberia. So the idea now is 20 million tonnes judge.

Speaker Change: Great. Thanks Tristan.

Speaker Change: I'll move now to our next question, which we will take from.

Speaker Change: At Morgan Stanley. Please go ahead of it.

Speaker Change: Thank you for taking my question I have just one question on the buyback program you are in the final stages of completing your existing program and do you expect a positive free cash by 'twenty five.

Speaker Change: Figure out what does the economics based on the long term price of iron ore and then decide if you want to continue to grow but those are all options that we have in Texas.

Speaker Change: It's trading at the EBIT catheter fair value. What comes next what are you thinking going forward you don't have a clear framework, but the question is are you willing to also stretch our balance sheet.

Speaker Change: What we have.

Don as we have focused our efforts on Calgary right now.

Speaker Change: You heard me talk about the projects in Calvert Triple C line you yes.

To see the opportunity at the moment.

Speaker Change: Should we think about that going forward. Thanks.

Speaker Change: So after all of that we would reevaluate, Texas and you're correct. It's also linked to the progress on your cost. So it's not that it's not then and for the foreseeable future is just not there.

Speaker Change: Okay, great. Thank you all so.

Speaker Change: As you heard from Us and as you saw from our release, we have done quite a lot in terms of returning capital to shareholders.

Speaker Change: Tim.

Speaker Change: Alright, Thank you and if I could just squeeze one more on project.

Speaker Change: We think we are unmatched by any yeah, that's what we said.

Speaker Change: So we have bought by 37% of the company.

Angela: Yes, Angela covered.

Speaker Change: Since 2020, we have generated about $21 billion of cash and about $13 billion $13 2 billion has been returned to shareholders. So thats very very significant.

Speaker Change: It seems the scope of the project is much larger than just in that electrical Ladakh.

Speaker Change: A 400 million Capex, so I see the total phase one point too, but he didn't cause a cold rolled Nielsen.

Speaker Change: And the other equipment. So can you explain the battery of the other equipments and explain the rationale for the investment and does that replace existing capacity as well and how should we think about it.

Speaker Change: We've also increased our base dividend.

Speaker Change: But <unk> 10 to.

Speaker Change: To <unk> 55 per share.

Speaker Change: That reflects the buybacks that we have done. It also reflects the underlying resilience slash benefits of the growth projects that are underway.

Speaker Change: Yes.

Speaker Change: So.

Speaker Change: It's all incremental capacity.

Speaker Change: So there's no replacement Theres no call Rolling Mill line for <unk>.

Speaker Change: In the company. So you can see that the direction of travel is very clear, we're very focused on returning capital to shareholders and I think we've done an excellent job in that over the last few years.

Speaker Change: Non grain oriented products. So this is really electrical feed line, perhaps youre comparing it to the <unk> facility, which is roughly.

Speaker Change: Going forward, we believe our policy serves us very well.

Speaker Change: <unk>.

Speaker Change: The amount recorded a bit more than that but let's use that as an referenced.

Speaker Change: And which we will take the free cash subtract the minimum dividend and then half of the remaining free cash is return capital to shareholders.

Speaker Change: Uh huh.

Speaker Change: Two key differences.

Speaker Change: The first most important is that.

Speaker Change: We think that allows the company to continue to grow develop its business and also return a significant amount of capital slash gastro share.

Speaker Change: The U S. It's a greenfield site.

Speaker Change: Right. So we have to do full construction.

Speaker Change: The facility.

The whole building.

Speaker Change: We're very comfortable with the policy that we have.

Speaker Change: In <unk>, we were able to utilize an existing building.

Speaker Change: Yes.

Speaker Change: So construction costs are quite expensive.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: That's number two.

Speaker Change: Great. Thanks, a lot.

Speaker Change: Importantly.

Speaker Change: Move to the next question, which we'll take from Goldman.

Speaker Change: The line in the U S has even more capability than the line in Europe.

Speaker Change: Goldman Sachs. Please go ahead ma'am.

Speaker Change: Hi, good afternoon.

Speaker Change: And that is a market function, we see that the U S market is moving to higher grades.

Speaker Change: Can you just get a better understanding on the rationale for the timing of this expansion in Liberia.

Speaker Change: Has has your demand outlook for sinter feed changed or has this decision being taken to provide.

Speaker Change: For this primarily because in the SUV segment.

Speaker Change: The other unique characteristics of the North American marketplace.

Speaker Change: Infrastructure for flexibility in product spec in the future just given some of the pressures we're seeing on high grade Iron ores currently and then with the spend.

Speaker Change: And so you need more capable equipment more equipment more oily and capability and August the ads.

Speaker Change: And the third is.

Speaker Change: Are your upside in the infrastructure of the 20 million tons or will this also now provide a more capital efficient pathway for that incremental timber.

Speaker Change: Obviously construction costs, it's manpower costs steel costs.

Speaker Change: And other costs are higher in the west than they are in Europe. So those are the primary factors. When you do a comparison on electrical steel line than in France, and then versus the ones that we're building in Alabama.

Speaker Change: 10 million tons that you may consider in the future.

Speaker Change: Yeah. Thank you. Thank you Matt So let me just give you a high level it will help.

Speaker Change: Explain I hope.

Speaker Change: Alright, that's very clear thank you.

Speaker Change: Your concerns or your question.

Speaker Change: Great. Thanks, Jason.

Speaker Change: So we had a new mining team that joined under that leadership I think the first thing that has been delivered and you guys have all seen this is safe operations and record volumes in Q4 in mines, Canada as well as strong volumes in Iberia and fourth quarter.

Speaker Change: I'll move now to answer that question.

Speaker Change: Which we will take from Morgan.

Speaker Change: Morgan Stanley. Please go ahead of it.

Speaker Change: Thanks for taking my question I have just one question on the buyback program in Europe, Finally gave us updating joining existing program.

Speaker Change: We expect that to continue.

Speaker Change: We expect a positive cash flow.

Speaker Change: Where should I put.

Speaker Change: It's trading at a steep.

Speaker Change: What are you what comes next what are you thinking going forward you don't have a clear benchmark, but the question is are you willing also to stretch your balance sheet.

Speaker Change: The team is doing a great job and the second asset we asked them apart from safe and reliable operations was to re look at the Liberian project.

Speaker Change: To seize the opportunity at the moment.

Speaker Change: And the team that has joined <unk> a few years ago.

Speaker Change: Should we think about the going forward. Thanks.

You can go through the names and so they've come back and their their thought process was that we should not stop the DSO product. So if you remember the original project was that we have DSO is basically run a mine, where we have 5 million tonnes of volume of that presently in Liberia, we startup the concentrator and with <unk>.

Paolo: Okay, great. Thanks Paolo.

Speaker Change: And as you heard from Us and as you saw from our release, we've done quite a lot in terms of returning capital to shareholders.

Speaker Change: We think our unmatched by any yeah.

Speaker Change: That's what we said.

Speaker Change: So we have bought back 37 from the company.

Speaker Change: The DSO.

Speaker Change: Since 2020, we have generated a $21 billion cash and about $13 billion $15 2 billion has been returned to show. So that's very very significant.

Speaker Change: So the net increase in volume is about 10 million tonnes.

Speaker Change: So two things number one.

Speaker Change: Resource and reserve base is much greater so we can run product for longer and number two we felt that the concentrate product doesn't have such a good market acceptability.

Speaker Change: We have also increased our dividend.

Speaker Change: Hi.

Speaker Change: 10.

Speaker Change: 255 per share that reflects the buybacks that you have done.

Speaker Change: Sinter feed and so you bring the two ideas together.

Speaker Change: And we felt that we could maintain a 20 million tonne output mine versus a 15 million ton, which would require investments in core infrastructure rail.

Speaker Change: It reflects the underlying resilience slash benefits of growth projects that are underway.

Speaker Change: In the company. So you can see that the direction of travel is very clear, we're very focused on returning capital to shareholders. I think we've done an excellent job in the last few years.

Speaker Change: Some blending capability and instead of doing just 15 million tonne concentrate we're now going to do more sinter feed and a little bit of DSO in lithium concentrate and so that's really the new concept in terms of capability beyond right now the investments there for 20 million tons, but when you make.

Speaker Change: Going forward, we believe.

Speaker Change: Policy serves us very well.

Speaker Change: And which we will take the free cash subtract the minimum dividend and then half of the remaining pre dash is return of capital to shareholders.

Speaker Change: We think that allows the company to continue to grow this business and also return a significant amounts of.

Speaker Change: <unk> investments the ability to expand capacity. Obviously is there is not as expensive because there's been a lot of work done on the port side. For example, as part of this 20 million ton expansion.

Speaker Change: Capital Slash Castro.

Speaker Change: So we're very comfortable with the policy that we have.

Speaker Change: I hope that helps answer your question Matt.

Speaker Change: Yes.

Speaker Change: Okay.

Matt: Thanks, a lot.

Matt: It's already a margin driven decision, which makes a lot of sense.

Speaker Change: Great color.

Speaker Change: Move to the next question, we'll take from Goldman Sachs. Please go ahead ma'am.

Speaker Change: I have a couple of others. If I may just on the Calvert Eas that youre commissioning when can we expect that to reach full capacity.

Speaker Change: Hi, good afternoon.

Matt: And you touched on.

Speaker Change: Just get a better understanding on the rationale for Tommy up this expansion.

Matt: So for the other comment just on some fly being sourced domestically, assuming the CIA is up and running.

Speaker Change: Yeah.

Speaker Change: It has has your demand outlook change.

Matt: And you keep that domestic contract in place.

Speaker Change: Changed or has this decision being taken to provide.

Matt: How much are you importing into Calvert on the slab side.

Speaker Change: Infrastructure for flexibility products back in the future just given some of the pressures we're seeing on <unk> currently and then with the spend.

Matt: And then just more broadly across the portfolio, we have seen in some of your key markets, particularly places like Brazil, just the FX depreciation.

Matt: How should we be thinking about this in terms of a cost tailwind just given some of your raw materials are or I guess price in U S. Dollars are you seeing much of a.

Speaker Change: Are you <unk> the infrastructure the <unk> tons all of US also now provide a more capital efficient buy for that incremental 10 million how is that concerning the future.

Matt: Costco in the thanks.

Matt: Yeah.

Matt: Yeah. Thank you. Thank you Matt So let me just give you a high level.

Matt: Sure.

Matt: So in terms of caliber.

Speaker Change: Hello.

Speaker Change: Plane I hope [laughter].

Matt: As I mentioned earlier and perhaps here with them that this.

Speaker Change: Consensus for your question.

This is really producing automotive quality steels.

Speaker Change: We had a new mining team that joined under that leadership and the first thing that has been delivered in June just have all seen this.

Matt: Exposed quality product and so there is a qualification process with automotive and that is a normal that is normal.

Safe operations in Iraq.

Speaker Change: In Q4 in Canada, as well as strong volumes in Iberia and fourth quarter.

Matt: Causes you ramp up to the slower. So we are anticipating roughly 12 months from today for a full ramp up for the volume of that facility.

Speaker Change: We expect that to continue.

Speaker Change: Uh huh.

Speaker Change: The team is doing a great job and the second test that we asked them apart for safe and reliable operations was to really look at the library project.

Speaker Change: In terms of the specifics of volume I don't know if you can provide you with more color I think we don't really disclose volume and I'll get him to answer <unk> question on Brazil.

Speaker Change: And the team that has joined loves that arcelormittal.

Speaker Change: Zero.

Matt: Sure Hi, Matt.

Speaker Change: You can go through the names and so just to come back and in there. There is process towards that we should not stopped DSO product.

Speaker Change: FX question the way we look at it.

Speaker Change: Absolutely Ryan So we saw various things in Mexico.

Speaker Change: If you remember the original project was that we have here. So is based around a mine.

Speaker Change: FX volatility during this quarter.

Speaker Change: The Brazilian real.

Speaker Change: 5 million tons of volumes that are present in Liberia, we startup concentrated or and we started the year.

Speaker Change: And depreciated significantly.

Speaker Change: But also in euros it was across the board.

Speaker Change: So the net increase in volume is about 10 million tonnes.

Speaker Change: As we know I mean, there's still interest finance, primarily dollar business and so.

Speaker Change: So two things number one the resource and reserve base is much greater.

Speaker Change: So then what we what we normally see is the following <unk> depreciation.

Speaker Change: Assuming a run product for longer and number two.

Speaker Change: Domestic prices tend to then be corrected.

Speaker Change: We felt that the concentrate product doesn't have such a good market accept reality.

Speaker Change: Correct me, the new exchange rates.

Speaker Change: As a synthesis.

Speaker Change: And and then.

Speaker Change: And so you bring the two ideas together.

Speaker Change: Alas.

Speaker Change: And we felt that we could maintain.

Speaker Change: That change is so significant that can impact the economies.

Speaker Change: 20 million tonnes output mine.

Speaker Change: It tends to be positive to our business right because your cost base.

Speaker Change: A 15 million ton Richard acquire investments in core infrastructure rail.

Speaker Change: And.

Speaker Change: Then it goes down your revenues just a trust within your exchange rates and.

Speaker Change: Some blending capability.

Speaker Change: And instead of doing just $15 million and concentrated where not one or two more sinter feed and diesel.

Speaker Change: In the medium to long.

Speaker Change: Your business is just more profitable so that's what we see.

Concentrate so that's really the new concept in terms of capability beyond right now the investments are there for training those bonds, but when you make certain investments.

Speaker Change: That's why we typically.

Speaker Change: When we have significant devaluations.

Speaker Change: That's great. Thanks for answering my questions.

Speaker Change: To expand class sensing Youll just see us.

Speaker Change: Alright. Thanks.

Speaker Change: There is not as expensive because there's been a lot of work done on the pork side for example.

Speaker Change: So we will move to the next question, which I think will take from Dominic at J P. Morgan prescribed dominant.

Speaker Change: 20 million ton expansion sorry.

Speaker Change: So I hope that helps answer your question.

Speaker Change: Thank you I just have a few questions.

Speaker Change: In fact, I'd say that that's not in place already a margin driven decision, which reflects all of a sudden.

Speaker Change: With starting to see signs of green shoots on pricing in Europe.

Speaker Change: And if I may just on the Calvert Eas that you're committing when can we expect that to reach full capacity.

Speaker Change: The U S.

Speaker Change: And obviously some discussions around.

Speaker Change: You touched on.

Speaker Change: Maybe some import restrictions coming in in Europe. So I was wondering if you could just maybe give us a little bit more color on how you're seeing kind of orders evolving.

Speaker Change: So very quick just on some slipping domestically, assuming that's up and running.

Speaker Change: And you cannot domestic contracts.

Speaker Change: Yes.

Speaker Change: How much are you importing into color on the slab side.

Speaker Change:

Speaker Change: That would be.

Speaker Change: And then just more broadly across the portfolio, we've seen came up.

Speaker Change: My first question second question.

Speaker Change: You mentioned Youre working capital optimization for 2025, I just wonder if you could put maybe put a quantum on that in terms of what you think is optimal.

Speaker Change: Brazil fixed depreciation.

Speaker Change: How should we.

Speaker Change: Be thinking about that in terms of cost tailwind just give it for your raw materials I guess.

Speaker Change: Working capital.

Speaker Change: Price in U S dollars are you see much of it.

Speaker Change: Carry forward number into 2025, and then final question, just we're getting a lot of questions and coming around Ukraine.

Speaker Change: Thanks.

Speaker Change: Sure.

Speaker Change: So in terms of Calvert.

Speaker Change: Things stand today could you just maybe give us a sense of how quickly you could.

Speaker Change: Uh huh.

Speaker Change: And as I mentioned earlier and perhaps here with them that this is really producing automotive quality deals.

Speaker Change: Return to pass over some production back to the market and if it would come with an incremental cost specifically capex. Thanks.

Speaker Change: Export quality product and so there is a qualification process with automotive.

Speaker Change: Okay. Thank you.

Speaker Change: And that is a normal pattern.

Speaker Change: Ukraine, and then I'll get your views and answer the rest.

Speaker Change: No.

Speaker Change: Does it ramp up to the floor. So we are anticipating roughly 12 months from today for full ramp muscle volume.

Speaker Change: So in terms of Ukraine.

Speaker Change: Obviously have been very difficult for our employees.

That facility.

Speaker Change: All of Us actually to just watch what has happened to our people into our facilities.

Speaker Change: In terms of specifics volume I don't know if you can provide you with more color.

Speaker Change: Whenever you disclosed on you and now I'll get him to answer.

Speaker Change: As you know.

Speaker Change: We're operating at about 30% of its capacity.

Speaker Change: Of course the question on <unk>.

Matt: Yeah, sure Hi, Matt.

Speaker Change: We are breakeven on an EBITDA basis, but we arent, losing cash we have been losing cash.

Matt: The first question the waiver.

Matt: Absolutely Ryan so soar.

Speaker Change: Day, one months.

Matt: Very significant.

Speaker Change: The invasion and Thats been.

FX volatility from last quarter.

Speaker Change: Uh huh.

Speaker Change: That's amplified the difficulty.

Matt: Or is it going to be all right.

Speaker Change: In terms of moving forward.

Matt: Theres shifts significantly.

Speaker Change: Clearly, we would hit cash breakeven.

Matt: But also in euros it was across the board.

Speaker Change: Jimmy we double utilization rates, that's our expectation that it would take the facility to about 2 million tonnes.

Matt: As we know what interest finance primarily August.

Matt: And.

Matt: But then what will win.

Speaker Change: That's still at 60% of utilization rates. So there is still less much less than where we were before.

Matt: Normally see.

Matt: Depreciation.

Matt: Domestic prices suspend should then correct.

Speaker Change: To go beyond that would require capex.

Matt: Let me know.

Matt: The exchange rate.

Speaker Change: At this point in time, I think it's a bit early to speculate on what that capex would be and how.

Matt: And.

Matt:

Matt: Uh huh.

Matt: That change is so significant.

Speaker Change: And how we would do it I think it also depends on how quickly demand returns what happens in terms of the rebuild plan and what type of piece.

Matt: The economy.

Matt: It tends to be positive for two hours.

Matt: Alright.

Matt: Thanks.

Matt: Amy.

Matt: Therefore bell.

Speaker Change: Is actually deliver it.

Matt: Revenues.

Speaker Change: So.

Matt: Okay.

Speaker Change: So I think I would leave you with the thought that we can quickly bring it back to cash breakeven to a 3 million ton rate, obviously, depending on prices and stuff like that it can be even better than cash breakeven and then future steps, we would discuss it in aggregate with all of you. Once there is more clarity.

Matt: And then in the medium to long term.

Matt: And it's just more profitable so that's what we see.

Matt: That's why we typically see when we have significant devaluations.

Matt: That's great. Thanks for answering my questions.

Speaker Change: Jim.

Yes sure.

Matt: Great.

Speaker Change: So let me start with Europe and so on.

Dominic: I'm sorry, what was the question, which I think will take from Dominic.

Speaker Change: In Europe as we all know there are important developments.

Matt: Morgan.

Speaker Change: We should see Oh, no other conclusion is very strong.

Matt: Please go ahead.

Matt: Thanks.

Matt: Just a few questions.

Speaker Change: One an important one off cost since the antidumping investigation I guess a few.

Matt: We were starting to see signs of green shoots or.

Matt: On pricing in Europe.

Speaker Change: Asian countries.

Speaker Change: So that of course can be quite positive.

Matt: The U S.

Matt: And obviously some discussions around.

Speaker Change: And that is confirmed.

Matt: Maybe some import restrictions coming in.

Speaker Change: Then a second piece that is also can be also very important.

Matt: In Europe.

Matt: So I just wonder if you could just get a little bit more color on youre seeing kind of orders evolving.

Speaker Change: A review of safeguards that we also expect to be completed very soon.

Speaker Change: So.

Matt:

Speaker Change: And then what we see right now is.

Matt: That would be.

Matt: My first question the second question.

Speaker Change: Fitness of imports given where prices are in Europe.

Matt: It shouldn't your working capital optimization of the 2025 I just wondered if you could maybe comment on that in terms of.

Speaker Change: Not so attractive.

Speaker Change: From a from our position of our order book for quarter, one is almost basically completed.

Matt: What do you think is.

Matt: Is optimal.

Matt: Working capital.

Speaker Change: And I think everybody is looking for.

Matt: Carey Ford number into 2025.

Speaker Change: The trade actions that should potentially improved quite significantly.

Matt: And a final question, just getting a lot of questions and going around Ukraine.

Speaker Change: Tuition in Europe.

Matt: Things stand today could you just maybe give us a sense of how quickly you could.

Speaker Change: And U S I think the.

Speaker Change: So as we are.

Speaker Change: Starting to see also a price announcements richness, which is good we'll see how it develops.

Matt: We've done two pass over some protection to the market and it would come with incremental.

Matt: Cost specifically capex. Thanks.

Speaker Change: In terms of our working capital I think what we our guide is that based on what we can see today alright market conditions, we don't expect to invest in working capital in 2020 filings our expectation is to see some release and we are not quantifying that amount right now.

Matt: Is the Q.

Matt: Absolutely.

Matt: To get your views on the rest.

Matt: So in terms of Ukraine.

Matt: It's obviously been very difficult for our employees.

Matt: All of us actually to just what has happened to our people and to our facilities.

Speaker Change: But.

Speaker Change: Current market conditions, which would see suddenly lose.

Matt: As you know.

Matt: We're operating at about 30%.

Speaker Change: We are building them serving them to reserve will be used.

Matt: Bass Citi.

Matt: We are breakeven on an EBITDA basis, but we arent, losing gosh, we had been losing cash in.

Speaker Change: And one of our customers in Europe that we.

Speaker Change: Are we going to need to rely so we're gonna add battery life all of that of course really is around the year.

Juan: Hey, Juan.

Matt: The invasion and that's been.

Juan: Uh huh.

Speaker Change: And as we know also in the first half of 2020 for raw materials were.

Juan: Yes.

Juan: In terms of moving forward.

Speaker Change: More expensive, so I guess youre walking through that so that should also benefit.

Juan: Clearly, we would hit cash breakeven.

Juan: Maybe we double utilization.

Speaker Change: Working capital in 2025.

Juan: So that would take this facility to about 2 million tons.

Speaker Change: That's very clear thanks, so much.

Juan: That's still at 6% of utilization rates.

Speaker Change: Alright, Thanks, Robert So I'll move now to take the next question, which will be from Phil at Keybanc. Please go ahead Phil.

Juan: It's still less much less than where we were looking for.

Juan: To go beyond that would require.

Juan:

Speaker Change: Hey, good afternoon at this agenda, we know Daniel.

Juan: At this point in time I think.

Juan: It's too early to speculate on what that Capex would be in house.

Phil: Thanks for taking my question.

Phil: On automotive in North America, and Europe, just broadly what are you seeing.

Juan: And how we would do it think it also depends on how quickly man returns what happens in terms of the rebuild and what type of pieces.

Phil: Seeing this year what are you what are you expecting in those markets and regions.

Juan: It's actually the net right.

Phil: Yeah.

Juan: So.

Phil: So are.

Juan: So I think I would leave you with is we can do to bring it back to cash breakeven to $8 million.

Phil: We are seeing more stability in <unk>.

Phil: In North America.

Phil: <unk> two.

Phil: 2024 was.

Juan: Great.

Juan: Depending on prices and stuff like that would be better than cash breakeven.

Phil: I wasn't here, where it was relatively stable.

Phil: For us we gained some market share and we were pleased with that.

Juan: And then future steps.

Juan: Discussing with all of you once there is clarity.

Phil: And in Europe.

Juan: And we know yes.

Phil: Got it.

Phil: We saw a decline in production or six 7%.

Juan: Yes sure.

Juan: Let me start with Europe and.

Juan: So in Europe as we all know.

Phil: Some destocking that happened also.

Juan: Got it.

Juan: And developments.

Juan: Uh huh.

Phil: In the fourth quarter with a nice case for.

Juan: But the conclusion.

Juan: One in Florida, one of the causes the I'm talking about I guess the Q.

Phil: For Europe in 2025.

Phil: A modest decline in production.

Juan: Asian country.

Juan: So they're quite.

Phil: The latest forecast.

Juan: Hi, Tim.

Phil: But then there are some offsets we have offsets and in Brazil, where we can change that.

Juan: Makes sense.

Juan: Then a second.

Juan: Second <unk> study also can be awesome very important.

Phil: The increase.

Phil: <unk> in North America, and then a small decline.

Juan: A review of the.

Juan: We all expect it to be completed very soon.

Phil: Yeah.

Juan: So.

Juan: And I don't know what you see right now is.

Phil: And then just a second question if I may.

Juan: Two paths of imports given where prices are in Europe, that's not so attractive.

Phil: Calvert you've talked about.

Phil: Lot today, a lot of good color, which we appreciate.

Juan: From a from our position of order book for water one is almost <unk>.

Phil: Have there been any meaningful startup costs within the results associated with with the commissioning of that mill.

Juan: We can compete.

Juan: And I think everybody.

Juan: All three.

Juan: That's true.

Juan: A question and partly in other situations.

Speaker Change: So Phil that's new I mean, this is a JV so.

Juan: Asia and Europe.

Speaker Change: At this point in time and quarter for North America.

Juan: I think the choice.

Juan: We are starting to see also a pricing benefit just as much as go ahead.

Speaker Change: Thank you very much.

Speaker Change: Alright. Thanks.

Juan: Yes.

Juan: That's all.

Speaker Change: So I will move to the next question, which we will take from past year.

Juan: Yeah.

Juan: In terms of awards.

Juan: Thanks, Doug I'll begin.

Speaker Change: Deutsche Bank. Please go ahead.

Juan: Based on what we can see today.

Speaker Change: Yes, thanks, and good afternoon, everyone.

Juan: Market conditions, we expect to invest and.

Speaker Change: I've got two questions left please my first one is just on your European performance and I guess, most most of there was so would've been pretty amazed by your ability to preserve literally flat margins in Europe in the spot environment, where what's really caused spreads has come off by about $100 versus the last few quarters. So what exactly has allowed you to perform as well.

Juan: And working capital in 2000 right.

Juan: My question is to see some release, so we are not quantifying that amount right now.

Juan: Uh huh.

Juan: Current market conditions, which was system removes.

Juan: We are building batteries, having gone through that.

Speaker Change: Has there been any benefits such as energy cost prepayments or anything else, which supported your cost performance here and then also can we expect your margins to already have reflected the low point.

Juan: And I mean, one of our facilities in Europe.

Juan:

Juan: We got them to rely on.

Juan: Oh, yes.

Juan: Please around the year.

Juan: As we know off during the first half of 2000 and strike all raw materials were.

Speaker Change: In the cycle here, which I guess was the second half of last year.

Speaker Change: My first question.

Juan: More impressive so I guess youre walking through that so that should also benefit.

Speaker Change: Yeah, that's right.

Speaker Change: We are actually very pleased with the performance of.

Juan: <unk> capital and <unk>.

Speaker Change: European business, given current market conditions and I think.

Juan: 2020.

Okay. Thanks, so much.

Speaker Change: While the minutes playing the performance is very strong costs.

Juan: Yeah.

Brett: Alright, Thanks, Brett So let me move now to take the next question, which will be fulfilled.

Speaker Change: <unk> right.

Speaker Change: The fact.

Speaker Change: Please go ahead.

Speaker Change: Look at our production numbers in quarter, four compared to last year.

Daniel: Hey, good afternoon, a decision we know Daniel.

Speaker Change: So there is a significant improvement and then of course in the solar industry.

Speaker Change: Thanks for taking my question.

Speaker Change: On automotive in North America, and Europe broadly what are you.

Speaker Change: Interesting.

Speaker Change: Well then of course your costs come down I think we had a good performance also in terms of fixed costs and that is supporting our results.

Speaker Change: Seeing share what are you what are you expecting those markets and regions.

Speaker Change: In quarter, four and the whole of.

Speaker Change: Uh huh.

Speaker Change: So.

Speaker Change: 2024, we have a much better year in terms of operations.

Speaker Change: We have seen a delay.

Speaker Change: In North America.

Speaker Change:

Speaker Change: <unk> 2004.

Speaker Change: Okay, Okay sounds good and then.

Speaker Change: No.

Speaker Change: It was relatively stable.

Speaker Change: Just my second question is on your footprint and I guess, you've done a lot of changes here in Las Vegas, I guess, the recent ones in terms of the service centers have been closing in France were slightly smaller in nature, but are there any further footprint steps, which are currently looking at more closely beat either when the restructuring side. The divestments, albeit also on the <unk> side.

For us we gained some market share and we were pleased with that.

Speaker Change: In Europe.

Speaker Change: We saw a decline.

Speaker Change: And production six.

Speaker Change: Six 7%.

Speaker Change: So I'm just talking about ethanol.

Speaker Change: And in the fourth quarter.

Speaker Change: So the base case for us.

Bob: Thank you Bob what was the last word of your sentence divestments or so.

For Europe in 2000, and a modest decline in production.

Speaker Change: So.

Speaker Change: Basically acquisitions I E.

Speaker Change: The latest forecast.

Speaker Change: Is there anything meaningful that you currently have on the radar in terms of restructuring or divestments or acquisitions.

Speaker Change: But that there are some offsets so we have offsets and in Brazil.

Speaker Change: Interesting.

Speaker Change: Okay, great. Thank you.

Speaker Change: This stability in North America, and a small decline.

Speaker Change: So in terms of Europe.

Speaker Change: Just to provide a little bit more context.

Speaker Change: No.

Speaker Change: Fundamentally.

Speaker Change: And then just a second question if I may.

Speaker Change: As you know there are three policy issues in Europe. The first is high energy prices, which is impacting the European steel industry.

Calvert: Calvert, you talked about a lot today, a lot of good color, which we appreciate.

Speaker Change: Or have there been any meaningful.

Speaker Change: Second the trade if you look at four five years ago imports were 15% 927%.

Speaker Change: Startup costs within the results associated with with the commercial that mill.

Speaker Change: And this is because the kudos and safeguard keep on increasing while the apparent steel consumption has not.

Speaker Change: No I mean this is a JV so.

Speaker Change: What are the actions that are being undertaken one there is an anti dumping case. The second is the safeguard measures themselves are being viewed and the third after trade is really common regulation.

Speaker Change: At this point in time and quarter product.

Speaker Change: Thank you very much.

Speaker Change: Alright, Thanks, Phil.

Speaker Change: So we'll move to next question, which we will take from Patheon.

Speaker Change: And again, there is a lot of discussion on climate regulation that the C band needs to be fair and equitable Glen domestic European statement <unk>.

Speaker Change: First of all congrats question.

Speaker Change: Yeah. Thanks.

Speaker Change: Hello, everyone.

Speaker Change: Two questions left please.

Speaker Change: Assuming those things Pan out the way, we would hope I think the actions that we need to take to further improve the competitiveness and concentrate our operations and improve productivity, we will be more limited in nature to the extent that those actions don't Pan out then clearly we will need to add.

Speaker Change: The first one is just talking about European performance.

Speaker Change: Yes, most most of those so it would've been premised on your ability to preserve.

Speaker Change: Let's see flat margins in Europe in the spot environment.

Speaker Change: Spreads have come off by about a 100 plus for the last few quarters.

Speaker Change: What exactly has allowed you to form as well and has there been any benefits such as energy cost prepayments or anything else.

Speaker Change: To restore our competitiveness to our business, we know how to do it.

Speaker Change: What are your cost performance here and then also can we expect.

Speaker Change: Have done it in the past and then we'd be embarking on such a strategy. So I.

Martin: Thank you Martin.

Martin: Half reflect the local.

Speaker Change: I hope that answers your question on how we think about our European business and how we can maintain competitiveness going forward.

Martin: In deciding to get which I guess, the second half of last year.

Martin: Last question.

Martin: Yeah.

Martin: Be well.

Speaker Change: Okay, great. Thank you.

Martin: Please with the performance.

Matthew: Thanks Matthew.

Martin: Businesses, given the current market conditions and I think.

Matthew: So we will move to the next question.

Matthew: We will take from Paris at Kepler Cheuvreux. Please go ahead Bruce.

Martin: To me that's explains the performance is very strong costs.

Bruce: Hi, Thank you for taking my question, maybe is a put a label on that one.

Martin: Right.

Martin: In fact, if you look at our progression.

Martin: For context last year.

Speaker Change: You've been very straightforward.

Martin: You can see in areas of significant growth and then also pausing to industry.

Speaker Change: Regarding the <unk> issues.

Speaker Change: European.

Martin: We are producing.

Speaker Change: Are there did European footprint faces.

Martin: Well now plus costs come down I think we had a good performance in terms of fixed costs and that is supporting our results.

Speaker Change: Hello.

Speaker Change: Would you say that.

Speaker Change: You have the feeling to have been licensed by the European Commission.

Martin: And in quarter, four and all of them.

Speaker Change: That's my first question and second question would be on the <unk> stake today, you have 28% it is a great asset.

Martin: Uh huh.

Martin: 2024.

Martin: Got it.

Martin: Corporations.

Martin: Okay, Okay sounds good.

Speaker Change: Q U boats as a reasonable price and.

Martin: Just a question on your footprint and I guess, you've done a lot of changes here in Las Vegas, I guess the recent months.

Speaker Change: Now that you have some time you've spent some time with our with the federal team.

Our service centers have been closing in Frontally were slightly smaller in nature although.

Speaker Change: How do you see the future there in terms of synergies.

Martin: He further steps.

Speaker Change: Not by the entire company.

Martin: Steps, which are currently looking at more closely.

Speaker Change: Thank you.

Martin: On the restructuring side, the divestments or be it also on the tourist side.

Speaker Change: Sure. So in terms of your first question, yes, obviously listen to.

Martin: Thinking about what is the loss would overview.

Speaker Change: When this thing is not enough right that needs to be action.

Martin: Does that sounds cool.

Martin: So oil based acquisition.

Speaker Change: And that's what we are looking forward to action in the first half of this year. There has been some action. However, if you. If you had noticed last week, the CSR deregulation smokeless bone ore and change so that's positive, but we need specific action to support the steel industry of Europe.

Martin: I guess I'd say.

Martin: Meaningfully currently have fun radar until the restructuring or divestments or cushion.

Martin: Okay, great. Thank you.

Martin: So in terms of Europe, just to provide a little bit more.

Martin: Contact.

Martin: Fundamentally.

Speaker Change: And usually you may take longer because of the geopolitical issue, but clearly action on trade, which is under control.

Martin: As you know there are three plus the issues in Europe.

Martin: Such as high energy prices, which impact.

Speaker Change: The European regulators as well as C band.

Martin: The steel industry.

Martin: And the Street, if you look at 450 in 15.

Speaker Change: So there is no change in our thought process, we need this to continue Decaf, Johnny we need this to continue to maintain although all of our operations and there is sympathy, but clearly we want to see the actions.

Martin: 15% nine points to 27% on this topic as the core doesn't safeguard keep on increasing while advantaged position has not.

Martin: What are the actions that are being undertaken one there is not the case. The second is the safeguard measures themselves are being viewed.

Speaker Change: Accomplished in terms of the other rig you're right. It's a great company, it's a great asset.

Speaker Change: The management team is doing a great job.

Martin: And the third.

Martin: Australia is really kind of regulation.

Speaker Change: We're very happy with our stake in at this point in time, we have no intentions.

Martin: And again there is a lot of discussion on regulation that is C band.

Speaker Change: Of increasing it further.

Martin: And to be fair enough decorative bulks and Glen domestic students.

Speaker Change: Okay great. Thank.

Speaker Change: Thank you Boris so we'll.

Martin: Assuming those things Pan out the way we would hope.

Speaker Change: Moving to the next question.

Speaker Change: We're going to take from a coal at Jefferies. Please go ahead.

Martin: I think the actions that we need to take to further improve the competitiveness and concentrate our operations and improve productivity, we will be more limited in nature.

Speaker Change: Okay. Thanks for taking my questions.

Speaker Change: The first one is just on <unk>.

Speaker Change: On India, I would love to get your thoughts on.

Martin: And that was actually don't Pan out.

Speaker Change: Current trends, you're seeing in the market there and what are the key positives or potential negatives that you're seeing into 2025.

Martin: In theory, we will need to act to restore competitiveness trusses, we know how to do it.

Martin: I've done it in the past and they would be embarking on such a strategy. So I.

Speaker Change: Then the second question is a bit of a longer one but I'd love to hear your thoughts how you think about it.

Martin: I hope that answers your question on how you think about our European business and how you can maintain competitiveness going forward.

Speaker Change: Slide number two you've been calling out for a while kind of structurally higher margins through the cycle and you've talked about you know your disposals.

Martin: Okay, great. Thank you.

Speaker Change: Disposals of businesses in HIFU reposition, but should we think about this into the future that your new capex projects or more value over volume focused.

Martin: Yeah.

Martin: Thanks, Brian.

Martin: So we will move to the next question, which we will take from us.

Speaker Change: Capture please go ahead.

This even at the bottom of the cycle.

Speaker Change: Hi, Hi, Thanks for taking my question, maybe is a put oil in that one.

Speaker Change: King.

Speaker Change: 130 EBITDA per ton.

Speaker Change: Is this kind of marking then then the neutral for you hopefully through the cycle. How do you think about that kind of value proposition going forward. Thank you.

Speaker Change: It sounds like you've been very straightforward.

Speaker Change: Regarding the <unk> issues.

Speaker Change: Sure.

Speaker Change: Other European footprint our faces.

Speaker Change: Okay.

Great.

Speaker Change: Hello.

Speaker Change: Thank you let me, let me talk about India.

Speaker Change: What's that.

Speaker Change: You have the feeling to have been licensed.

Speaker Change: In terms of India, we had a great investor visit a few months ago. Our people could see that we have a very high quality asset with very engaged passionate and committed team.

Speaker Change: European Commission.

Speaker Change: That's my first question.

Speaker Change: Second question would be on the.

Speaker Change: <unk> take today of 28%.

Speaker Change: Yeah.

Speaker Change: Our facilities are world class they are coastal facilities with very good iron ore linkages. So we have a very very strong foundation to build on we are present the building on that we are doubling the capacity, but it's not only just doubling the capacity.

Speaker Change: So at a reasonable price.

Speaker Change: And Oh.

Speaker Change: Now that you have some time you spend some time with with the Federal agency.

Speaker Change: How do you see the future there.

Speaker Change: In terms of synergies and why not buy the entire company. Thank.

Speaker Change: We are investing upstream in terms of iron ore capability and in pellet plants, but we're also investing downstream because we are in the process of commissioning downstream automotive.

Speaker Change: Thank you.

Speaker Change: Sure.

Speaker Change: So your first question, yes, obviously listen to.

Speaker Change: The nice thing is not enough right.

Speaker Change: Our facilities. This court ruling the lines Galeb lines. So there is a significant upgrade to the quality and capability of the mill and we're also bringing new products like Mcnellis.

Speaker Change: Okay.

Speaker Change: And that's what we are looking forward to.

Speaker Change: Actually the first half of this year there has been some action however.

Speaker Change: If you have noticed last week, the CSR deregulation or postpone or and changed so that positive, but we need specific action to support the steel industry.

Speaker Change: In terms of the short term the short term it's difficult in India.

Speaker Change: Uh huh.

Speaker Change: Market.

Speaker Change: <unk> is flooded with imports.

Speaker Change: Like other parts of the world because of the overcapacity that exists in the global steel industry.

Speaker Change: Europe.

Speaker Change: And as you may take longer.

Speaker Change: Because it's a geopolitical issue clearly action on trade, which isn't the control of <unk>.

Speaker Change: What is the government doing the government is evaluating safeguard action.

Speaker Change: And regulators as well as C band.

Speaker Change: Should hear the results of the investigation in the first quarter of this year. If you were to ask how confident are you that DCF constant support.

Speaker Change: Yeah.

Speaker Change: So there is no change.

Speaker Change: Of course that we do.

Speaker Change: Need this to continue that journey, we need to continue to maintain all the all of our operations.

Speaker Change: Growth I am quite confident the reason why I'm confident is because.

Speaker Change: And.

Speaker Change: India has a very clear strategic direction, they call it <unk>, which basically translates into self reliance and the reason why we invested in the country in the first place was because of the shift in policy, where the Indian government is very clear that they need to make steel domestic T. Other compare.

Speaker Change: There is sympathy, but theory, where you want to see the actions.

Speaker Change: Accomplish.

Speaker Change: Right.

Speaker Change: Our company is a great asset.

Speaker Change: The 90 teams doing a great job.

Speaker Change: Uh huh.

Speaker Change: Very happy with our stake at this point in time, we have no intentions.

Speaker Change: Of increasing it further.

Speaker Change: <unk> have spoken out loud that is cooperative mode of action is not put in place and it will be difficult for them to continue to expand and to cater to domestic.

Speaker Change: Okay great.

Speaker Change: Thank you Boris.

Speaker Change: Moving to the next question.

Speaker Change: Which runs from Jefferies. Please go ahead.

Speaker Change: Demand and therefore, I do believe that appropriate action will be taken it will allow us to continue our growth plan and build on a very excellent foundation that we have in the country already.

Speaker Change: Okay and thanks for taking my questions I have two my first one is just on <unk>.

Speaker Change: India, a ticket thoughts on them.

Speaker Change: Current trends, you're seeing in market, there and what are the key positives or potentially I guess is it that you're seeing into 2025.

Speaker Change: In terms of your second question on structurally higher margins look the short answer is yes, because we are not really growing crude steel capacity.

Speaker Change: And then the second question is a bit of a longer ones that I'd love to hear your thoughts on how you think.

Speaker Change: Right. If you look at the projects that we're doing they're all value add in nature, whether it's the electrical steel capability.

Speaker Change: About it.

Speaker Change: Slide number two you've been calling out for a while.

Speaker Change: Obstruct high onboard Gen straight cycle and you've talked about.

Speaker Change: <unk> and caliber or even vertical integration in mining supports our business as it lowers the overall seed through cost of our product offering.

Speaker Change: Disposal businesses in hydro reposition, but should we think about this into the future that your new capex projects are more value over volume focused this even at the bottom of the cycle.

Speaker Change: Whether it's on the downstream investments between Dominion and Brazil, and Calvin also to the extent that we are growing EBITDA, we already have the finishing capability. So on our part 10 basis. The shipments are not really increasing this is us moving upstream to capture more of the value make it melted and poured in the you asked me to Eef quality.

Speaker Change: King.

Speaker Change: One <unk> EBITDA per ton.

Speaker Change: Is this kind of marking that then then you draw for you hopefully.

Speaker Change: Do you think about that value proposition going forward. Thank you.

Speaker Change: Okay.

Speaker Change: Green steels.

Speaker Change: Great.

Speaker Change: For the marketplace. So fundamentally the idea is exactly that structurally higher margins.

Speaker Change: Let me then talk about India.

Speaker Change: Uh huh.

Speaker Change: Indeed, we are.

Speaker Change: Which creates which creates a much better quality business and much better dynamic for us as we ride through the cycles of the steel industry.

Speaker Change: A great investor visit a few months ago people could see.

Speaker Change: You have a very high quality asset with very engaged passionate and committed team.

Speaker Change: And then maybe just to be helpful.

Speaker Change: So it is our world class they are close to facilities with very good iron ore linkages. So we had a very very strong foundation to build on whereas in building on that we are doubling our past three but it's really just astounding to capacity.

Speaker Change: Keep it keep the thread going yet.

Speaker Change: Could you just remind us of some of the actions that you've done maybe over the last five years that have improved the margins of the metal steel business. Thank you.

Speaker Change: Sure.

Speaker Change: We are investing upstream in terms of iron ore capability and pellet plants, but we're also in the downstream because we are in the process of Michigan downstream automotive.

Speaker Change: Any actions.

Speaker Change: I think the biggest one is how we have changed our portfolio.

Speaker Change: Right.

Speaker Change: And.

Speaker Change: So if you saw we also announced the absolute carbon emissions are down 50%. So that reflects how our portfolio has shifted to higher quality assets.

Speaker Change: Our facilities, it's crawling aligns scalp lines. So there is a significant upgrade to the quality and capability of the mill to bring products like make nellix.

Speaker Change: Which are higher quality because of their cost position as well as their quality position in terms of.

Speaker Change: In terms of the short term the short term it's difficult to India.

Speaker Change: Ah the market.

Speaker Change: So that I think is the overarching.

Speaker Change: Is flooded with imports.

Like other parts of the world because of the.

Speaker Change: Theme, we have rounded out that asset base.

Speaker Change: The overcapacity that exists in the global steel industry.

Speaker Change: With very good acquisitions. So for example, a person in Brazil.

Speaker Change: What is the government doing the government is evaluating safeguard action, we should hear the results to their navigation in the first quarter of this year. If you were to ask how confident are you that you see at constant scope.

Speaker Change: Built at a cost which is a T X multiple and what we bought it for the World Class lab asset, it's really low cost highest quality.

With multiple growth options. So that's also another example of how we have upgraded our asset.

Speaker Change: Growth I am quite confident the reason why I'm confident is because.

Speaker Change: Portfolio, we're talking about <unk>, that's a great asset, it's delivering well the stock has done well and it has a good return.

Speaker Change: The India is a very clear strategic direction.

Andrea Barbera: It's Andrea Barbera, which basically translates into self reliant.

Speaker Change: I expected to have a good cash return as well as as time goes by.

Andrea Barbera: Reason why we invested in them for the first place was because of a shift in policy with the Indian government is very clear that they need to make steel domestic.

Speaker Change: As another example, the hot strip mill in Mexico.

Speaker Change: As another very good example, where.

Andrea Barbera: Other competitors have spoken out loud.

Speaker Change: We had a slot plant in Mexico, Theres, a very strong market.

Andrea Barbera: That is cool seaborne iron is not put in place and it was difficult for them to continue to expand in the kitchen domestically.

Speaker Change: We invested in the Hot strip mill, it's a great Hot strip mill and you can see that the profitability of Mexico, which is reflected in NAFTA has fundamentally changed and this is for the domestic Mexican market, it's not foreign exports to.

Andrea Barbera: And therefore, I do believe that.

Speaker Change: Rate action movie icon.

Speaker Change: It will allow us to continue our growth plan and build on a very good foundation that we have in the country already.

Speaker Change: The U S. So these are a few of the examples we obviously had our management gains program recently on our portfolio optimization in Europe and another.

Speaker Change: In terms of.

Speaker Change: Second question on structurally higher margins.

Speaker Change: Answer is yes, because we aren't really growing crude steel capacity.

Speaker Change: Pieces, we don't talk a lot by the continuous improvement the impact of the R&D and innovation in the company, but all of that translates too and so that's why you can see that we continued to perform well we continue to perform or perform at the highest level.

Speaker Change: If you look at the projects that have been doing they're all value add in nature.

Speaker Change: Whether it's the electrical.

Speaker Change: Steel capability.

Speaker Change: <unk> and caliber or vertical integration in mining supports our business as it lowers the overall <unk> costs.

Speaker Change: I should say actually outperformed the competition in the regions in which we hope.

Speaker Change: All of our product offering.

Speaker Change: And thats fundamentally the dynamics of our business and our company.

Speaker Change: Whether it's on the downstream investments Dominion in Brazil.

Thank you.

Speaker Change: Counting also to the extent that we were doing if we already have the sushi.

Speaker Change: Thank you.

Speaker Change: Great. Thanks.

Speaker Change: Thanks, Carl Thanks for the chips are moving up against time here, but I think we've got time for another couple of quick questions. So we will take the first from Timna.

Speaker Change: So on a carbon basis.

Speaker Change: Not really increasing this is us moving upstream to capture more value.

Speaker Change: We can also then according to the U S b quality Greenfield.

Timna: Well research. Please go ahead.

Timna: Thank you and sorry, I dropped off earlier, so I guess I wanted to ask a few maybe quick ones. One is on the electrical steel in the U S. The green oriented steel is the really the Taiwan is it possible that you also make that or are you just going to focus on non green. There's one question and the other one is probably not as quick but on the.

Speaker Change: For the marketplace, so fundamentally the idea exactly that structurally higher margin.

Speaker Change: Great.

Speaker Change: It's a much better quality business in a much better dynamic for us as we ride through the cycles of excuse me.

Speaker Change: And then maybe just to be helpful and Keith.

Gross forecast people, what's your forecast great closely of course.

Speaker Change: Yes.

Speaker Change: Keep the thread guarantee yet.

Speaker Change: Could you just remind us of some of the actions you've done maybe over the last five years that have improved the margins of.

Timna: You don't include what you think happens in China. So I'd, just like to get a little more of your thoughts about China. Since we've been dancing around this global oversupply do you think that they rectify that do you think exports could shrink this year just your thoughts there. Please.

Speaker Change: The metal steel business. Thank you.

Speaker Change: Sure.

Actions.

Speaker Change: I think the biggest one.

Speaker Change: How we have changed our portfolio.

Timna: Sure.

Speaker Change: Right.

Timna: [laughter] in terms of the electrical field facility. It is not great. So that's our focus and these are different markets right.

Speaker Change: And so.

Speaker Change: So as you saw we also know that.

Speaker Change: With carbon emissions.

Speaker Change: So that reflects how our portfolio has shifted to higher quality assets.

Timna: The gross product goes into Transformers, and electric grid, the non green basically goes into automotive and the reason why that market has changed I mean, <unk> always existed but the reason why it has changed is because of electrical car electric cars as well as hybrid vehicles.

Speaker Change: Which are higher quality because of their cost position.

Speaker Change: As well as their quality position at Samsung.

Speaker Change: So that I think is over.

Speaker Change: All right.

We have rounded out that asset base.

Speaker Change: With various acquisitions. So for example.

Timna: And the quality requirements that they have is very different from the usual I should say or the commodity type nongraded electrical steels. This is really premium and there is a good price point and equally important is that continues our franchise right. We are the leading automotive supplier in the NAFTA market, just thinking of the quality and tech.

Speaker Change: And in Brazil.

Speaker Change: Those at a cost which is a multiple of what we wanted for its world class lab asset is really low cost highest quality.

Speaker Change: With multiple wounds auction. So thats also another example of how we have upgraded our asset.

Speaker Change: Portfolio, we've talked about that's a great asset it's delivered well the stock has done well it has a good return.

Timna: Nickel capability that we have and discontinued that franchise that that that would be.

Timna: That we have is our storm it though in terms of China.

Speaker Change: I expect it to have a good cash.

Speaker Change: Cash return as well as time goes by.

The high levels are that Ah <unk>.

Speaker Change: That's another example, the hot strip mill in Mexico.

Timna: <unk> is exporting 110 million tonnes of steel. These are record levels. We saw this last in 2015 2016, but fundamentally the company did well.

Speaker Change: <unk>.

Speaker Change: It was another very good example, where are.

Speaker Change: We had a top line in Mexico is a very strong market.

Speaker Change: We invested in and Hot strip mill, it's a great Australia, maybe you can see that the profitability, but it does not.

Timna: We generated over $2 billion investable free cash flow in spite of around 10 million tons of Chinese exports.

Speaker Change: <unk> changed and it's just that the domestic.

Timna: Going forward I expect.

Timna: A lot of.

Speaker Change: Mexican market its not for exports.

Timna: Trade action to level, the playing field or whether it's the U S slash, NAFTA or Europe, or Brazil, or India, and perhaps the trade action spuds reduction in overcapacity or reduction of exports in China, that's really the base case.

Speaker Change: The rollout.

Speaker Change: So these are a few of the foods and our management gains program.

Speaker Change: Lots of portfolio optimization in Europe and in other.

Speaker Change: She says we don't talk a lot about the continuous improvement the impact of the R&D and innovation in the company, but all of that tranche.

Timna: Not so focused on what is happening in terms of China, but perhaps the trade actions.

Speaker Change: And so that's why you can see that we continued to perform well and we continue to perform or perform at the highest level.

Timna: Capacity rationalization. So I hope that provides you with the flavor of our thought process.

Speaker Change: I should say actually outgrowing the competition in the region.

Timna: Great. Thanks.

Speaker Change: And fundamentally the demand of our <unk>.

Speaker Change: Okay. Thank you thanks Timna.

Speaker Change: <unk> company.

So we'll move now to take the.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Next question, which is from Max Order and then we will take.

Speaker Change: Great.

Karl: Thanks, Karl Thanks for leaving up against the time here, but I think we've got time for another.

Speaker Change: One final question after that.

Speaker Change: Please go ahead.

Speaker Change: Yeah.

Speaker Change: Question, So we'll take the first.

Speaker Change: For taking my question good afternoon.

Speaker Change: Uh huh.

Speaker Change: Ah Wolfe research. Please go ahead.

Speaker Change: First question is on the bridge from Q4 to Q1 the PTA.

Speaker Change: Thank you kind of dropped off earlier, so I just wanted to ask a few quick ones. One is on the electrical steel in the U S. The green lines, it's really that the pipeline is it possible that you often make battery just going to focus on non green. There's one question and the other one is.

Speaker Change: Can you provide some insight on the moving parts are traditionally Q1 is a better seasonality higher volumes, especially in North America and Europe. In Q4. So can we expect an uptick in EBITDA in Q1 versus Q4.

Speaker Change: Probably not as quick but on that.

Speaker Change: Growth forecast.

Speaker Change: Yeah, Mike Let me take this one so you're right so going through the regions starting with the U S. Our expectation is we'll see some.

Speaker Change: What's your forecast great closely of course.

Speaker Change: You don't see what you think happens to China, I guess to get a little more.

Speaker Change: So China, because we've been dancing around the global over supply.

Speaker Change: Better shipments I mean, as we normalize production and <unk>.

Speaker Change: Rectify that you think exports and shrink this year just to get your thoughts.

Speaker Change: Quite well.

Speaker Change: So our expectation is for shipments to be true.

Speaker Change: <unk> therapy.

Speaker Change: And then in terms of prices and costs, we expect to remain relatively stable.

Speaker Change: Sure.

Speaker Change: In terms of electrical steel facility is not great. So that's our focus and in a different market that's right.

Speaker Change: In Brazil, we are.

Speaker Change: Also under the shipments remained relatively stable.

The gross product goes into Transformers.

Speaker Change: And on.

Speaker Change: Prices and costs.

Speaker Change: Transformers and the electric grid.

Speaker Change: Well.

Speaker Change: And in Europe, and we do expect some positive also a volume pick up but.

Ongoing anything goes into automotive and the reason why that market changed I mean, Amit.

Speaker Change: Thanks.

Speaker Change: Our prices has been lower in Europe.

Speaker Change: But the reason why it has changed.

Speaker Change: Patrick will call.

Speaker Change: It took longer to start to show some recovery.

Speaker Change: Cause as well as hybrid vehicles.

Speaker Change: And the quality requirement that they have very different from the usual I should stay where the commodity part nongraded metric.

Speaker Change: Our <unk> five.

Speaker Change: Slightly lower.

Speaker Change: One higher higher higher volumes.

Speaker Change: Slightly lower.

Speaker Change: Prices.

Speaker Change: Really premium and there is a good price point.

Speaker Change: And a relatively stable cost.

Speaker Change: Equally important is that continues our franchise right. We are these days.

Speaker Change: On the mining side.

Speaker Change: We do expect another strong performance, we all expect to also volumes during group, especially in Liberia, and another strong performance in mines, Canada.

Speaker Change: Automotive supplier in the NAFTA market.

Speaker Change: Quality and technical capability that we have and it's continuing to that franchise.

Speaker Change: Is that correct.

Speaker Change: We have as our strength in.

Speaker Change: In terms of China.

Speaker Change: Thank you.

Speaker Change: The high levels of debt.

Speaker Change: A second and last one is on the decarbonization of industrial you are suspending your actions in Europe.

Speaker Change: China is exporting between 10 million tonnes of steel. These are record levels. We saw this last in 2015 2016, but fundamentally the company did well.

Speaker Change: But could you give us an update on kind of that do you see the situation is sufficiently supportive to carry on with your decarbonization expenses there.

Speaker Change: We generated over $2 billion investable free cash flow.

Speaker Change: Spiderman ton intrinsic excellence.

Speaker Change: I think we're planning to complete the transition from 2026 to 2020, yet or is it on track to do that Tim.

Speaker Change: Boeing forward I expect.

Speaker Change: A lot of.

Speaker Change: Great action to level, the playing field.

Speaker Change: Yeah.

Speaker Change: Great. Thank you.

Speaker Change: The U S slash, NAFTA or Europe, or Brazil, or India.

Speaker Change: I would say suspended as a very strong word.

Speaker Change: In terms of our Europe <unk> plans.

Speaker Change: And perhaps the trade action sponge production in overcapacity or reduction of exports and that's really the case.

Speaker Change: I would say that we are progressing we have electric furnace, which is coming on stream and <unk> as well as we are revamping defenses as the style. So we have some product coming out.

Speaker Change: Not so focused on what's happening in terms of China, but perhaps the trade actions forces capacity rationalization, so I hope that providing the flavor of our thought process.

Speaker Change: Both long and flat, which is decarbonize in nature.

Speaker Change: In terms of our plans we are awaiting for appropriate regulatory framework to consider to continue on decarbonizing, our existing European business. So you talked about this a lot in terms of energy aid and C band, we need preconditions to continue that and to two acts.

Speaker Change: Great. Thanks.

Speaker Change: Okay. Thank you.

Speaker Change: Uh huh.

Speaker Change: So well move out too.

Speaker Change: Our next question from.

Speaker Change: And that will take a while.

Speaker Change: And one question after that.

Marc: Please go ahead Marc.

Speaker Change: The <unk> journey in Europe, and I also mentioned that overall, we're cognizant of the Capex envelope to medium term capex envelope of four to five.

Marc: Thank you for taking my questions.

Speaker Change: The first question is on the bridge from <unk> to <unk>.

Speaker Change: We expect it to be within that.

Marc: Can you provide some insight on that.

Speaker Change: The envelope in terms of Canada.

Speaker Change: Bob.

Speaker Change: Traditionally Q1 is a seasonally higher volumes, especially in North America and Europe in Q4, So can we expect a peak in IBD.

Speaker Change: It's a similar similar questions out there.

Speaker Change: Related to the regulatory environment.

Speaker Change: Q1 versus Q4.

Speaker Change: As you are also connected to what happens with the United States as.

Michael: Hello, Michael.

Speaker Change: Wonderful.

Speaker Change: As well as what happens in the elections in Canada, which are forthcoming in 2025.

Speaker Change: Right, so I'm going through the regions.

Speaker Change: So our expectation is with Samsung.

Speaker Change: So I don't expect significant progress in Canada until we have clarity on some of these questions that exist.

Speaker Change: About shipments some of that.

Speaker Change: We normalized production.

Speaker Change: Plus well.

Speaker Change: So our expectation is for shipments to be true.

Speaker Change: Hi.

Jimmy: I hope that helps I don't know if theres anything more Jimmy do you want to add on this question.

Speaker Change: And then in terms of price and cost mix to remain relatively stable.

Jimmy: No I think I think you touched on everything.

Speaker Change: In Brazil, we also.

Speaker Change: Okay.

Speaker Change: Should be relatively stable.

Jimmy: Okay.

Speaker Change: And.

Jimmy: Perhaps at the higher level, we're getting decoupling, you think that because as you are.

Speaker Change: Prices and costs.

Speaker Change: Well.

Speaker Change: And in Europe, and we do expect some positive also.

Jimmy: Kind of more cautious both in Canada or in Europe, but despite that you're still thinking that decarbonization is economically viable.

Speaker Change: Pick up but.

Speaker Change: Our price adjustment as we know in Europe.

Speaker Change: It's a long exercise.

Jimmy: <unk>.

Jimmy: Or are you facing some constraints and perhaps <unk>.

Speaker Change: Sure.

Speaker Change: I won't see or slightly.

Speaker Change: Slightly lower.

Jimmy: You were not expecting.

Speaker Change: Q1.

Speaker Change: High volumes.

Jimmy: A few years ago when you launched this initiative.

Speaker Change: Okay.

Speaker Change: Priced.

Speaker Change: Christ.

Jimmy: Yeah sure. So I think the key the key word or the key thought to takeaway is economic decarbonization.

Speaker Change: And a relatively stable costs.

Speaker Change: On the mining side.

Speaker Change: We expect our strong performance, we all expect us volumes strength dual special needs in Liberia.

Jimmy: Clearly we believe it is important for the global steel industry and for us to Decarbonize and there's no two ways about that.

Speaker Change: The strong performance.

Speaker Change: In my mind this is Kevin.

Jimmy: However, it has to be economic for industry, otherwise, how are we going to afford it and maintain output and maintaining jobs right and it's not possible.

Speaker Change: Thank you and then one last one is on the double differently.

Speaker Change: <unk> spending.

Jimmy: And what has changed in the last few years is the peso policy and regulation has to go down.

Speaker Change: And in Europe.

Speaker Change: But could you give an update on kind of that do you see the situation is sufficient.

Jimmy: There has not been the type of action.

Speaker Change: To carry on with you or double digit.

Jimmy: That we had expected on top of it specifically in Europe, you have seen in energy prices unfold, which is also delayed how youre decarbonize, because we need to decarbonize, what do we need to do fundamentally substituting coal coal.

Expenses there.

Speaker Change: I think you were planning to complete the transition from 'twenty one.

Speaker Change: 2028 track to do that.

Speaker Change: Yeah.

Speaker Change: Great. Thank you.

Jimmy: Coking coal with natural gas and electricity and as you know in Europe natural gas has gone through the roof as soon as electricity and cooking coal is a global commodity has not had that same price action that the other two have had and so it makes it very difficult to move forward without an appropriate regulatory framework. So that's how I would describe it.

Speaker Change: I would say suspended as a very strong word [laughter] Indesit Europe.

Speaker Change: Plans.

Speaker Change: I would say that we are progressing well.

Speaker Change: Two furnaces, which is coming on stream in the horn as well that'd be a revamp a defensive style. So we have some broader coming out.

Jimmy: So the focus of the company as economic <unk> doesn't mean, we're not doing anything I mean, you've done a lot right 50% of absolute emissions are down from 2018 share of Es is going up from 18% to 25% in the last six years. The monies that we have spent on <unk> is generating EBITDA and most important.

Speaker Change: Both long and flat to Decarbonize in nature.

Speaker Change: In terms of our plan as we are waiting for appropriate regulatory framework.

Speaker Change: To continue on Decarbonizing, our existing European business.

Speaker Change: So it's.

Speaker Change: In terms of energy trade and C band.

Jimmy: The our product offering in the marketplace. So ex scar products, which is fundamentally thats Euro Green steel continues to increase right. It's doubling now and so I think we are in a good position when it comes to our customers and our competitive position in our business when it comes to our cost base.

Speaker Change: Preconditions to continue that and.

Speaker Change: Two two.

Speaker Change: The <unk> journey in Europe, and also mentioned that overall real quick.

Speaker Change: Envelope it'd be in some kind of non local foreign at two five.

Speaker Change: We expect to be within that.

Jimmy: And and.

Envelope in terms of cash.

Jimmy: Just to underline. This this theme we have the capability, whether it's people or technology or knowledge to decarbonize, we just need the appropriate policy framework to make it economically viable.

Speaker Change: Canada.

Speaker Change: It's a similar.

Speaker Change: Questions on that.

Speaker Change: Relative to the regulatory environment.

Speaker Change: We should also connected to what.

Speaker Change: What has been spent.

Jimmy: That's very clear thank you.

Speaker Change: The United States as well as what happens in the interconnections in Canada for sure.

Jimmy: Thank you.

Brian: Great. Thanks, Brian So we're going to try and squeeze in one final follow up question from Tristan.

Speaker Change: Coming into 2025.

Speaker Change: So I don't expect a significant progress in Canada until we have clarity on some of these questions that exist.

Jimmy: Exxon's. So please go ahead.

Speaker Change: Yes. Thank you for taking the follow up just on the steel action plan. When you talk about the things you need to see in Europe. The seaborne takes more trade support.

Speaker Change: So I hope that helps I know, there's a few more.

Speaker Change: And on this question.

Jimmy: Other industry has pushed also regarding the time line of that.

Speaker Change: No I think I think you touched on everything.

Jimmy: Certain regulation like the ETS phase out do you believe that is something on the table at the moment do you need to see that.

Speaker Change: Okay.

Speaker Change: And perhaps at the higher Levered company.

Speaker Change: Do you think that you have.

Speaker Change: <unk>.

Jimmy: And lastly, just a quick update on South Africa, given there's been a lot of headlines that would be helpful. As well. Thanks. Thanks again.

Speaker Change: Kind of more cautious both in Canada or in Europe, but despite that.

Speaker Change: Keep thinking that decarbonization is economically viable.

Jimmy: Yeah.

Jimmy: Sure.

Speaker Change:

Jimmy: Look in terms of regulation.

Speaker Change: Or are you facing somewhat constrained.

Speaker Change: Sure.

Jimmy: Our focus is C band that trade to the extent that the free allowances that and that's what you're talking about get extended that's that's net positive for the competitiveness of the European steel industry.

Speaker Change: We're not expecting.

Speaker Change: A few years ago when you launched this initiative.

Speaker Change: Yeah.

Speaker Change: Yeah sure. So I think the key the key word one of the key takeaway.

Oh, it is economic decarbonization.

Jimmy: However.

Jimmy: That is not necessarily a precondition.

Speaker Change: Clearly we believe it is important for the global human Austria and for us to Decarbonize and there's no two ways about that.

Jimmy: The condition is really appropriate create action inappropriate C band policy.

Jimmy: Those preconditions are much more than just about Dekalb. There also about the viability and sustainability of the European business. So perhaps that's why we have much more focus on those two initiatives and you're right. The Mario Draghi report on the new Green industrial deal.

Speaker Change: However, it has to be economic for our industry.

Speaker Change: Florida and mid teens output in the job right and it's not possible.

Speaker Change: And what has changed in the last few years is that that is the policy regulation has come down.

Speaker Change: There has not been type of action.

Jimmy: <unk> has really kick started a process within the European Commission within European governments to reexamine I think events in the U S has accelerated all of that discussion and clear you're asking the question was asked are they listening yes of course they are listening.

Speaker Change: That you had expected on top of it specifically in Europe, you have seen in energy prices, a bold, which is also delayed identity governance, because we do a deal and I was wondering did you view on.

Speaker Change: Fundamentally substituting coal they are cool.

Jimmy: And most important is that the actions that they take.

Speaker Change: Coking coal with natural gas and electricity and as you know in Europe natural gas has gone through the roof Suez electricity and coking coal is a global commodity has not had the same price that the other two have had and so it makes it very difficult to move forward without.

Speaker Change: In terms of South Africa.

Jimmy: Look at the headlines around the long business.

Jimmy: And then if you look at the long business in South Africa. It's a good operation. It's a good facility. It has been challenged by a scrap imbalance. So what has happened over the years as there is an export tax on scrap.

Speaker Change: Great regulatory framework, so that's how I would describe it so.

Speaker Change: So the focus of the company.

Speaker Change: Doesn't mean, we're not doing anything I mean, you've done a lot right, 50% of absolute emissions down from ph D.

Jimmy: And because there is an export tax on scrap mini mills, who are utilizing our scrap are much more competitive because scrap is very cheap in south Africa.

Speaker Change: Yes, just going from 18% to 25% in the last six years and money that we have sent on Dekalb is generating EBITDA and most.

Jimmy: Relative to other metallics and integrated operation of Newcastle.

Speaker Change: Importantly, our offering in the marketplace, so ex kaukauna prescriptions from a menu major agreements.

Jimmy: <unk> has become uncompetitive and that is not a story of yesterday. It's a story that has been going on for the last few years and we've been working with the government to try and make that facility competitive then and we realize we can't.

Speaker Change: To increase right doubling now.

Speaker Change: So I think we were in a good position when it comes to our customers and our competitive position in our business.

Jimmy: Theres not enough support this on enough conditions, there's no change in the scrap.

Speaker Change: Our cost per piece.

Speaker Change: And.

Speaker Change: Underlying this the theme we have capability either.

Jimmy: Regulations, and therefore, we've taken the decision to shut it down the other the other business the flood business remains viable. So this remains a continuing discussion with the South African government.

Speaker Change: People or technology or knowledge to Decarbonize, we just need to cook.

Speaker Change: Create policy framework to make it economically viable.

Speaker Change: Okay. Thank you.

Jimmy: To ensure that the overall answer.

Speaker Change: Thank you.

Jimmy: It remains viable healthy and competitiveness.

Speaker Change: Great. Thanks, <unk>, so you're going to try and squeeze in one final question from Tristan.

Jimmy: I don't know if Jamie that was there anything else you wanted to add.

Jimmy: No I think thats it.

Speaker Change: So please go ahead.

Speaker Change: Yes. Thank you for taking the follow up just on the Tequila shouldn't plan. When you spoke about the things you need to see in Europe did you see that effect more trade support our.

Speaker Change: That's a very good summary.

Speaker Change: And then of course, South Africa, and some as the company's name, but these results today you can also see that.

Speaker Change: Earnings remained status you.

Speaker Change: Our industry has pushed also regarding the time line of.

Speaker Change: Do you have more information there, but that's fundamentally where we are in this in this process.

Speaker Change: Sort of regulation.

Speaker Change: Yeah.

Speaker Change: Do you believe that is something on the table at the money you need to see that.

Speaker Change: Yeah.

Speaker Change: Alright, thank you.

Speaker Change: Lastly, just a quick update on South Africa, I get that there's a lot of headlines there would be a post call. Thanks again.

Speaker Change: Yeah.

Speaker Change: Great. Thanks.

Speaker Change: So that was our last question, so I'll hand back to the tariff for any concluding remarks.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Sure.

Okay, great. Thank you.

Speaker Change: Look in terms of regulation.

Speaker Change: Let me just reiterate some of our key messages.

Speaker Change: Our focus is in seaborne trade today.

Speaker Change: Our I hope you you have appreciated that our performance demonstrates that we are a transformed company.

Speaker Change: To the extent that the philosophy and that's what you're talking about it.

Speaker Change: Extended that's net positive for our competitiveness.

Speaker Change: Europe is in the North Street.

Speaker Change: There were a few questions on that on our cycle through Q2 EBITDA of $130.

Speaker Change: However.

Speaker Change: That isn't necessarily a precondition.

Speaker Change: As I said before I passionately believe we have the best talent in the steel industry and we are.

Speaker Change: The condition is really going to create action inappropriate C band policy.

Speaker Change: I think those three conditions are much more than just about <unk>. They are also about the viability sustainability is European based.

Speaker Change: Harnessing the styling to outperform the competition.

Speaker Change: Get our numbers on a region by region basis, we do really really well, we have a very strong balance sheet.

Speaker Change: Perhaps that's why we have much more focus on.

Speaker Change: On those two initiatives and you're right. The MRO you would argue for it.

Speaker Change: Allows us to continue to grow in a counter cyclical fashion.

Speaker Change: On the new greenhouse freely.

Speaker Change: And has allowed us to return capital to shareholders looking to the medium and longer term the outlook for our business and security positive, we're well positioned to capture demand in growth markets through strategic investments in India, Brazil, and the U S.

Speaker Change: Has really started a process with the European Commission than Europe, and governance to reexamine and I think it ends in the U S and accelerated all of that discussion and clearly I think the question was asked I think that yes of course.

Speaker Change: All very exciting opportunities for us with that I will close today's call and I look forward to speaking with you soon thank you.

Speaker Change: A key and most important this election.

Speaker Change: Yeah.

Speaker Change: In terms of South Africa.

Speaker Change: The headlines around the loan business.

Speaker Change: And then if you get the along business in South Africa, It's a good operation good consuming it has been challenged by scrapping.

Speaker Change: So what has happened over the years is there an X or textron scrap.

Speaker Change: And because there is an export textron scrap many moves to other utilities.

Speaker Change: Scrap are much more competitive because scrap is very cheap.

Speaker Change: Okay.

Relative to other metallics and integrated operation on new accounts so.

Speaker Change: I had one competitor and that is not a story of yesterday. It's a story that has been going on for the last few years.

Speaker Change: And we've been working with the government to try and make that facility competitive.

Speaker Change: <unk> com.

John: There isn't enough tore this is John.

Speaker Change: Conditions is no change in the supply.

Speaker Change: Regulations, and therefore, we've taken the decision to shut it down.

Speaker Change: The other the other business the <unk> business remains viable. So this remains a continuing discussion with the South African government.

Speaker Change: To ensure that the overall arms.

Speaker Change: It remains viable and healthy and competitive.

Jim: And then Jim you know is there anything else you want to do that.

Jim: No I think Thats fair.

Jim: That's kind of a summary.

Jim: And then I'll hop off.

Jim: Companies like these results.

Jim: You can also see that.

Jim: Earnings financed.

Jim: You'll have more information there.

Jim: But that's fundamentally where are we on this side of this crisis.

Jim: Yeah.

Jim: Alright, thank you.

Jim: Okay.

Jim: So that was our last question so I'll come back to you for any.

Creating remarks.

Jim: Okay, great. Thank you.

Jim: Let me just reiterate.

Jim: Some of our key messages.

Jim: I hope you have appreciated that our performance demonstrates that we are a transformed company.

Jim: No there were a few questions on that on the <unk>.

Jim: Through Q2 EBITDA of $30.

Jim: As I said before I passionately believe we have the best talent in the steel industry.

Jim: And we are.

Jim: Harnessing this down to outperform the competition she didn't get our numbers by region basis.

Jim: We have a very strong balance sheet.

Jim: The.

Jim: Allows us to continue to grow in that country and compassion.

And it has allowed us to return.

Jim: Capital to shareholders, we ended the medium and longer term the outlook for instance to securely.

Jim: We are well positioned to capture demand in those markets through strategic investments in Brazil, and the U S.

Jim: These are all very exciting opportunities for us is that grocery skull.

So to speaking with you soon.

Jim: Okay.

Jim: Thank you. This concludes today's conference call. Thank you for participating.

Jim: Okay.

Jim: [music].

Jim: Yes.

Jim: [music].

Jim: Hum.

Jim: Hum.

[music].

Jim: Hum.

Jim: [music].