Global R&D Presentation -...
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Global R&D and Automotive highlights Montataire, 26 September 2013 – Analysts tour
Transcript of Global R&D Presentation -...
Global R&D and Automotive highlights
Montataire, 26 September 2013 – Analysts tour
2013 ©
Arc
elo
rMitta
l – A
ll rights
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or
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ies
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isclo
sed,
used,
or
repro
duced w
ithout
prior
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pecific
auth
oriza
tion o
f A
rcelo
rMitta
l C
ON
FID
EN
TIA
L –
Privile
ged Info
rma
tion -
Arc
elo
rMitta
l pro
prieta
ry i
nfo
rmation
26 September 2013 Analysts tour 1 30/09/2013 Author
Global R&D Key Facts and Figures
• 1,300 full time researchers
• 2012 spending of $285m
• Broad, comprehensive portfolio and programmes addressing
business needs
• worldwide network of laboratories (11 labs in Europe and
North America)
• Budget spending by focus area:
52%
7%
41%
Product Process Exploratory
Plates &
Specialties
14 %
Auto
55 %
General
Industry *
12 %
Construction
14 %
Others
5 %
R&D effort fully aligned with group strategy: geography, value chain, product differentiation
* Packaging, appliance,
metal processing, electrical steels
2013 ©
Arc
elo
rMitta
l – A
ll rights
reserv
ed f
or
all
countr
ies
Cannot
be d
isclo
sed,
used,
or
repro
duced w
ithout
prior
written s
pecific
auth
oriza
tion o
f A
rcelo
rMitta
l C
ON
FID
EN
TIA
L –
Privile
ged Info
rma
tion -
Arc
elo
rMitta
l pro
prieta
ry i
nfo
rmation
26 September 2013 Analysts tour 2 2
Our research centres and development teams across the world
Canada
Hamilton
USA
East Chicago
France
Forbach (*)
Gandrange
Le Creusot
Maizières
Montataire
Spain
Avilés
Basque Country
Luxembourg
Esch-sur-Alzette
Belgium
Gent
Liège (*)
Czech
Republic
Ostrava
(*) Strategic partner
- Forbach: CPM
- Liège: CRM
Canada, USA Spain, France, Germany, Italy China, South Korea, Japan
On-site product-portfolio deployment: Product Development Engineers
Automotive Residents, Process Development & Deployment Specialists
Product and Process Development Teams
Global R&D - Automotive
Five labs dedicated to the automotive industry
Steel has the best compromise between weight reduction, comfort, safety & durability
• 565 Engineers and Technicians are adapting steel to the evolution of automotive customers’ needs:
– Develop new steels
– Improve steels’ in-use properties
– Find anti-corrosion solutions
– invent breakthrough products
– Ensure technical service to customers
Canada
Hamilton
USA
East Chicago
France
Gandrange
Maizières-les-Metz
Montataire
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Dedicated Resident Engineers bring
technical support to customers around the world Germany: 6 resident
engineers
France: 3 resident
engineers
Spain: 1 resident
engineer
Japan: 3 resident
engineers
China: 1 resident
engineer
Republic of
Korea: 1 resident engineer India:
1 resident
engineer
Italy: 1 resident
engineer
Brazil: 1 resident
engineer
North America: 14 resident engineers
United Kingdom: 1 resident engineer
We have built strong and deep relationships with our biggest customers and work with them in committed co-engineering programs.
6 EVI and processing support Engineers
to provide stamping and joining support
during the industrialization and the
whole life of vehicle
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through
responsiveness to
customer needs,
pro-active
optimization of
product/process
through
Vehicle Design
support,
product
promotion
& approval
5 years + 2 - 3 years < 18 months
through
product
innovation and
generic steel
solutions
Vehicle
Production
Vehicle industrialization
projects
Vehicle design projects
Advanced projects
Current vehicles
New vehicles
through
assistance to
stamping
& joining
Technical services at all stages
of the vehicle life
Advanced
engineering Co-engineering
EVI and processing
support
Quality
management
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Steels for automotive: a strategic market
Disclaimer
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• Forward-Looking Statements
This presentation may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “target” or similar expressions. Although ArcelorMittal’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal’s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the “SEC”) made or to be made by ArcelorMittal, including ArcelorMittal’s Annual Report on Form 20-F for the year ended December 31, 2012 filed with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.
• Non-GAAP Financial Measures This presentation may contain supplemental financial measures that are or may be non-GAAP financial measures. Definitions of such supplemental financial measures and a discussion of the most directly comparable IFRS financial measures can be found on ArcelorMittal's website at http://www.arcelormittal.com/corp/investors/presentations/.
ArcelorMittal is global #1 for automotive steels
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1) Industry-wide
initiatives
2) S-in motion
(ArcelorMittal)
3) Beyond 2017
New breakthrough
ArcelorMittal solutions
Automotive construction: emissions
regulation remains stringent
I II III
Regulation is evolving quickly in the
automotive industry.
Car makers’ main actions to meet
challenges:
• Weight reduction to meet
environmental Worldwide
legislation (reduce CO2
emissions) • Conventional powertrain vehicles
• Electric and hybrid vehicles
• Productivity: Global platforms
ArcelorMittal continues to respond to demanding regulations by offering affordable and safe
lightweight solutions
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Through innovation, steel remains material of choice
Generation 1, phase 1: HSLA, HSS
Generation 1, phase 2 AHSS: Dual Phase, TRIP Steels, Martensitic etc.
Generation 1, phase 3: Usibor® for hot stamping
Generation 3: 3rd Gen AHSS
Generation 2: TWIP, X-IP
Usibor® 1500P:
first serial use of
hot stamping of
coated boron
steels, patented
by ArcelorMittal
I II III
ArcelorMittal’s leadership as solution provider recognized by EU/ North America OEMs
S-in motion
demonstrate
s the
potential of
AHSS
1990 2008 2010 2017 2012
S-in motion
electric
vehicles
Contribution to
ULSAB/ULSAC
industry-wide
lightweight
effort
ArcelorMittal’s
ABC
lightweight
project
Lightweight
steel door
Magnesium 18 – 45
Steel 2.0 – 2.5
Carbon FRP 21 – 23
Aluminium 11.2 – 12.6
Footnotes:
• All steel and aluminium grades included in ranges.
• Difference between AHSS and conventional steels less than 5%.
• Aluminium data - global for ingots; European only for process from ingot to final products .
Importance of Life Cycle Assessment
Material production greenhouse gas (GHG) emissions:
• GHG from Production (in kg CO2e/kg of material)
• Current Average GHG Emissions Primary Production
Source: WorldAutoSteel
Using a full life-cycle analysis (LCA) approach is the only way automakers can accurately measure, and reduce, the energy consumed by their vehicles over their lifespan.
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Life Cycle Assessment in the automotive sector
• Substituting conventional steel with AHSS is the most attractive solution in environmental and economic terms:
– Steel is able to reach equivalent GHG emissions at a significant lower cost than aluminum
– Life cycle analysis shows that considering the uncertainties, steel and aluminium offer equivalent results for Greenhouse Gas (GHG) emissions.
• Steel is 100% recyclable without any loss of properties
• As we move towards more energy efficient vehicles, the materials’ production phase will be more critical
– It is necessary to use lightweight materials like AHSS that also provide environmental benefits during their production.
– AHSS have less emissions during the production phase compared to aluminum even if uncertainties are considered
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Worldwide offer
• We offer all around the world the most advanced steels with:
– Consistent mechanical properties resulting from many parameters defined all
along the production process
– Different coatings and surface treatments
– Systematic comparison of in-use properties of similar products (equivalency
program).
Hot Stamping, AHSS, Deep Drawing steels, Electrical steels and much more…
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Usibor® and hot stamping: a key technology for
automotive industry
• Hot stamping technology for high strength coated steels invented and patented by ArcelorMittal
• Very quick growth: some vehicles already use more than 20% of Usibor
• First industrialisation in Mouzon (Ardennes) in 2003
• 4th line open in 2013 in Florange (Moselle) with for the 1st time in the world theaccess to very wide coils for customers
Tempering in the tool of heated sheet
at 900C
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At the edge of innovation:
S-in motion: solutions for weight reduction
• A catalogue of 60 steel solutions
delivering:
– Savings of up to 73 kg or 19% of a
typical C-segment vehicle’s Body In
White and chassis weight
– a 13.5% reduction in CO2 equivalent
(eq) emissions during the vehicle’s use-
phase
– these savings are achieved at neutral
cost without compromising safety
performance
Choose the best weight saving / cost compromises
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S-in motion key figures and impact
S-in motion project roll-out in 2011-
2012
• 31 customer events held in Europe,
Asia, North America and South America
at main car makers and Tier 1 suppliers
– 8,500 registered visitors (275 on
average per event, incl. top
management, purchasing, design
engineers etc)
• New events in 2013 for trucks
3 main impacts on market
• Increased collaboration with
OEMs on co-engineering
activities
• Contribution to significant growth
of Advanced High Strength Steels
in the car industry
• Increase of our patented solutions
(e.g. Usibor® and Laser Welded
Blanks)
S-in motion was the single largest initiative of this kind worldwide
New electrical steels for new electric
motor demands
• Launched in June 2012, iCARe™ is
ArcelorMittal’s new range of
innovative (i) and environmentally
friendly (e) electrical steels for the
car of tomorrow.
• 3 main steel types:
• Save: for very low losses,
extending the car’s range
• Torque: for the highest levels of
mechanical power output,
boosting acceleration
• Speed: high strength electrical
steels for high speed rotors,
increasing performance at high
speeds
• This iCARe™ offer is supported by
€90 million investment on the
annealing line in St. Chély
d’Apcher (France)
• Volume capacity: 120 kt/year, expandable to 250 kt/year to meet future demand
• Start production of new line: May 2013
ArcelorMittal is positioning for the next generation of electric cars
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Shanghai
VAMA
FAW-VW & BMW
Daimler & Nissan
BYD, Changan, Suzuki, CFMA & FAW-VW
Changfeng, Fiat, DPCA, Dongfeng, Honda, JMC & Suzuki
Geely, VW, GM, KIA, SAIC & Chery
SAIC, Toyota, GM, Honda, Nissan & BYD
Beijing
Guangzhou
Loudi
VAMA greenfield joint venture facility in China: Strategically positioned to reach growing target markets
• Capex: US$850 million,
1.5 MT state-of-the-art
production facilities
• Located in Loudi City,
Hunan, well-positioned to
serve growing local
automotive market
• Local presence of
commercial and technical
teams
• Scheduled to start
production in 2015
• Expansion capability up to
2.5 MT
China Automotive industrial network
2220
1714
Auto steel consumption
accessible to VAMA target
products (market size in MT)
2012 2014 2016 2018
VAMA: Valin ArcelorMittal Automotive
Target areas and markets
VAMA: ArcelorMittal JV partnership in China
VAMA strategically positioned to capture growth
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A quote from Volkswagen
“Volkswagen is using high strength steels in increasing amounts.
It is a very cost effective way of reducing weight. Using new
innovations in steel engineering… it is possible to reduce weight
without the use for more costly materials such as aluminium and
carbon fibre.”
Armin Plath, VW’s Head of Materials Research and Manufacturing
Source: Article “Volkswagen Replaces Aluminium With Steel To Save Weight And Money” ,
written by Bertel Schmitt on January 24, 2013 for the Truth About Cars website.
New ultra lightweight car door solutions
for today and the future!
OEMs are under strong pressure
to increase fuel economy in all regions … Global CO2 (or equivalent) regulation trends
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10
20
30
40
50
60
70
1970 1980 1990 2000 2010 2020 2030
CA
FÉ
Re
qu
ire
me
nt
(Mil
es
pe
r G
all
on
)
Cars
Trucks
Average
2012-2025 US CAFE Rules
• 2012-2025 rules are footprint driven – each
vehicle has a mandated fuel economy standard
based on track x wheelbase
• 2025 CAFE for Light Vehicle USA: 54.5 MPG
based on projected 2025 Fleet by EPA/NHTSA
• Need for specific answers from ArcelorMittal to offer lightweight solutions:
New ultra lightweight car door solutions for today and the future
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Toward steel grades and process optimisation
for lighter door solutions
Weight: 13.3 kg
Weight savings: 4.9 kg / 27%
Steel grades
Weight breakdown
Baseline Front Door S-in motion S1 Lightweight steel door
Short term Ultra lightweight steel door – Market ready
14.5kg 18.3kg 12kg Medium term Short term
C-segment vehicle
13.3kg
1. Door inner
Laser welded blank AM05 0.8mm /0.6mm
2. Waist beam
MS1500 0.9mm & DP780
3. Door beam
Usibor®1500P
4. Hinge reinforcements
Usibor®1500P
5. Outer panel
FF280DP (490DP) 0.6mm
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Steel can go even further
10.5 to 12kg
Medium term
Medium-term steel solutions for C & D-segment cars… to get closer to Aluminum
• Short & Medium term solutions are 30% less expensive compared to an Al Door
• Short & Medium term ultra lightweight steel solutions show that steel remains
the most cost-effective material for automotive applications
Thin gauge approach: • 29% to 34% weight savings for D & C segment doors
• Performance validation of thin gauge outer till 0.5mm
thanks to multilayered patch for stiffness purpose
• New steel grades development identified for outer panel,
door beam
New design approach: • 28% weight savings for D segment door
• Structural holistic load path optimization
• Use of available steel grades
• Accent on manufacturing technologies development
Highlight: Prototyping campaign in R&D Montataire & Maizières
Trials on 0.55 & 0.5 mm Outer Panel with multilayered patches
• Stiffness
• Appearance (no read thru)
• Dent resistance: with FF280DP or increased Yield Strength grade
• Match Al doors mass
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Contacts
Daniel Fairclough – Global Head Investor Relations
+44 207 543 1105
Hetal Patel – UK/European Investor Relations
+44 207 543 1128
Valérie Mella – European and Retail Investor Relations
+44 207 543 1156
Maureen Baker – Fixed Income/Debt Investor Relations
+33 1 71 92 10 26
Thomas A McCue – US Investor Relations
+1 312-899-3927
Lisa Fortuna – US Investor Relations
+1 312-899-3985
