2016 09 21 emis committee umicore florange final...2016/09/21 · precious metals chemistry...
TRANSCRIPT
1
Introducing UmicoreMeeting with the EMIS delegation
Florange
September 21 th, 2016
22
Who we areA global materials technology and recycling group
Introducing Umicore
One of three global leaders in emission control catalysts for light-duty and heavy-duty vehicles and for all fuel types
A leading supplier of key materials for rechargeable batteries used in portable electronics and hybrid & electric cars
The world’s leading recycler of complex waste streams containing precious and other valuable metals
33
Our Group structure
Introducing Umicore
Jewellery & Industrial Metals
Platinum Engineered Materials
Precious Metals Management
Precious Metals Refining
Technical Materials
RECYCLING
Cobalt & Specialty Materials
Electroplating
Electro-Optic Materials
Rechargeable Battery Materials
Thin Film Products
ENERGY & SURFACE TECHNOLOGIES
Automotive Catalysts
Precious Metals Chemistry
CATALYSIS
44
Unique business model
Industry leader in sustainability
Introducing Umicore
Our foundations
more stringentemission control
electrification of the
automobile
resourcescarcity
Supportive megatrends
Industry leader in sustainability
metals materialsolutions
recycling
applicationknow-how
Chemistry material science
metallurgy
Unique business model
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By 2020 we have…
clear leadership in clean mobility
materials and recycling
turned sustainability into a greater competitive edge
Introducing Umicore
Our strategy
66
Unique positionin clean mobility materials
ICEEmission control
catalysts
BEVBattery cathode
materials
(p)HEVBattery cathode materials and emission control catalysts
Fuel cellsElectro-catalyst and battery cathode materials
Introducing Umicore
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SHORT LOOP
Recycling services for customer
production scrap and residues
LONG LOOP
Unique technologies for treating complex
residues and by-products
Unique position in recycling
Introducing Umicore
Further leverage Umicore’s leadership in closed loop solutions for customers
Leverage the profitable expansion to 500kt in Hoboken
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Turning sustainabilityinto a greater competitive edge
Introducing Umicore
The purpose is to generate more concrete benefits from our sustainability efforts eg:
We have transformed Umicore into a sustainability leader over the past 15 years
99
Figures exclude associated companies (December 2015)
Global presence:10,429 people, 66 manufacturing sites
Introducing Umicore
North America
857people
11industrial sites
South America
692people
4industrial sites
Europe
6,694people
29industrial sites
Asia / Pacific
20industrial sites
1,877people
309people
Africa
2industrial sites
1010
20%
32%
48% 51%
18%
5%
24%
2%
Key figures 2015
Introducing Umicore
Revenues
€ 2.6 bnREBITDA
€ 505 mRecurring EPS
€ 2.27 /share
RESOURCE EFFICIENCY
�End-of-life materials
�Secondarymaterials
�Primarymaterials
REVENUES BY GEOGRAPHY
2015
Europe �
North America �
South America �
Asia-Pacific �
Africa �
1111
Strong commitmentto innovation
Introducing Umicore
70%
15%
15%
R&D spend € 145 m R&D
FOCUSCombined Horizon
2020 clean mobility and recycling
�
Horizon 2020 other �
Post Horizon 2020 and other �
5.5% of revenues invested in R&D
Focus on clean mobility and recycling
520 patent families, 46 patents filed in 2015
1212
Unique business model
Strategic positioning
Strong commitment to
innovation
Solid financial structure
Our strategic ambitions are supported by
Introducing Umicore
Clear leadership in clean mobility
materials and recycling
Turn sustainability into a greater competitive edge
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Automotive Catalysts
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Automotive Catalysts (AC)
Complete catalyst systems to reduce
exhaust gas emissions
Customer
focus
Operational excellence
Global Manufacturing and Technical Footprint
Business model:At AC we develop technologies which allow our customers to meet
automotive emission legislation at the lowest Total Cost of Ownership
People
Engagement
One of three world leaders
15
A committed team . . .
. . . with strong customer focus!
>2000 employees worldwide
>400 employees dedicated to R&D
R&D cost >6% of Revenue (ex PGM)
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Global footprint16 plants in 13 countries, 8 R&D / test centers in 6 countries
FlorangeFrance
BurlingtonCanada
TulsaUSA
HimejiJapan
RheinfeldenGermany
AmericanaBrazil
Auburn HillsUSA
HanauGermany
Bad SäckingenGermany
TokonameJapan
KarlskogaSweden
Nowa RudaPoland
OnsanKorea
AnsanKorea
SongdoKorea
SuzhouChina
Port ElizabethSouth Africa
RayongThailand
PuneIndia
Production plant
Production plantUnder construction
R&D/Technology development center
R&D/Technology development centerUnder construction
Production plant & R&D/ Technology development center
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LDV HDD
Global position in Light Duty Vehicles and Heavy Duty Diesel
• Broad technology portfolio addressing all emission control needs of gasoline and diesel engines
• Broad technology portfolio for On-Road andNon-Road
• Global R&D and test center footprint • Global R&D and test center footprint supporting running and future business
• Established for more than 30 years • Comparative newcomer
• Global production footprint • Production footprint in relevant regions
• Solid track record with major global OEM’s • Contract wins with regional and globalplayers
• Strong presence in all regions • Solid market position in Europe, South America, Korea and China
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Light and heavy duty market segmentsset to grow
Europe/Africa
Greater China
Japan/Korea
North/America
South America
South Asia
Source: IHS, KGP and Umicore assumptions
LDV Production by Region HDD Production by Region
CAGR: 5.8%CAGR: 2.9%
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Tightening legislation A key driver for strong growth
LDV: 8 legislation changes between 2015 – 2020
• Advanced markets :
• CO2 (fuel efficiency), Particulate Number and Real Driving Emission standards are main driver for new after-treatment system solutions
• Emerging markets: Introduction of EU4/5 standards
HDD On-Road: 13 legislative changes with tighter standards beyond 2015
HDD Non-Road 4 legislative changes . . .
. . . providing opportunities for AC to position new technical solutions and win market share
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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
USA Tier 2 Tier 3
USA (CARB) LEV II LEV III
EU Euro 5c Euro 6b Euro 6c
Russia Euro 3 Euro 4 Euro 5
Japan Japan 2009
China - National C3 C4 C5 C6
China - Beijing(Gasoline only)
Beijing 4 Beijing 5 Beijing 6 Draft
India - National BS II BS III BS IV BS VI
India - Cities BS III BS IV (24 cities) BS IV (50-70 cities) BS VI
S Korea (Gasoline) LEV II LEV III (not officially decided)
S Korea (Diesel) Euro 5 Euro 6
Indonesia Euro 2 Euro 4
Thailand Euro 3 Euro 4
Brazil PL 5 PL 6PL6+ (GPF & 160kkm Durability)
Not official decided
Argentina Euro 4 Euro 5
LDV emission legislation roadmap
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EU emission legislation roadmapLegislation drives complexity
Euro 5 Euro 6b
130 g/km 100% fleet
95 g/km100% fleet
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Year
Emission standards
Development andmeasurement phase
NTE-Limit – Conformity Factor (CF)
CF1NOx: 2.1 CF2NOx: 1.0+margin (0.5)*
Real DrivingEmissions
CO2target
Notes:• Other requirements include NEDC/WLTC, On Board Diagnostic• Scenario based on European Commission press release October 22,
2015• CF: Not confirmed by final regulation
• All dates: New type approval PC / * subject of annual review and revision
Significant change in RDE and CO2 requirements
Euro 6cEuro 6d TEMP Euro 6d
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Emission legislation in EuropeCO, HC, NOx for Light Duty Diesel (LDD)
CO
HC+NOx
NOx
EU 1 und EU 2 adjusted to NEDC w/o 40s idling (ACEA correlation factors)
23
Emission legislation in EuropeCO, HC, NOx for Light Duty Diesel (LDD)
CO
HC+NOx
NOx
EU 1 und EU 2 adjusted to NEDC w/o 40s idling (ACEA correlation factors)
24
Emission legislation in EuropeCO, HC, NOx for Light Duty Diesel (LDD)
CO
HC+NOx
NOx
EU 1 und EU 2 adjusted to NEDC w/o 40s idling (ACEA correlation factors)
25
Emission legislation in EuropeCO, HC, NOx for Light Duty Diesel (LDD)
CO
HC+NOx
NOx
EU 1 und EU 2 adjusted to NEDC w/o 40s idling (ACEA correlation factors)
26
Emission legislation in EuropeCO, HC, NOx for Light Duty Diesel (LDD)
CO
HC+NOx
NOx
EU 1 und EU 2 adjusted to NEDC w/o 40s idling (ACEA correlation factors)
27
Emission legislation in EuropeCO, HC, NOx for Light Duty Diesel (LDD)
CO
HC+NOx
NOx
EU 1 und EU 2 adjusted to NEDC w/o 40s idling (ACEA correlation factors)
28
Exhaust systems for light-duty diesel cars
Euro 6bEuro 1-3 Euro 6dEuro 4+5
DOCDOC DOC cDPFDOC cDPF NSC cDPF
DOC SDPFDOC SDPF
DOC cDPF SCRDOC cDPF SCR
NSC SDPFNSC SDPF
NSC cDPF SCRNSC cDPF SCR
HC/CO conversion + particulate after-treatment + NOx after-treatment + real driving emissions
Complexity increases
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Exhaust systems for light-duty gasoline carsEuro 1-6b Euro 6c
HC/CO/NOx after-treatment + particulate control + real driving emissions
TWCTWC TWCTWC
cGPFcGPF
cGPFTWC cGPFTWC
cGPFTWC cGPFTWC
TWCTWC TWCTWC
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Real driving emissions (RDE)
Portable Emission Measurement Systems (PEMS)
Emissions to be measured:• NOx,• CO (without binding NTE limit),• Particulate Number (PN),• CO2
Emissions to be measured:• NOx,• CO (without binding NTE limit),• Particulate Number (PN),• CO2
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Real driving emissions (RDE)Most important boundary conditions
Trip sequence:⅓ urban-⅓ rural-⅓ motorwaymin. 16km each
Cold start phase:Tcooling water > 70°Cbut limited to 5 min.
Temperature:moderate: 0 - 30°Cextended: -7 - 30°C
Altitude:moderate < 700mextended < 1300m
Speed: max. 145 km/hurban: 0-60 km/hrural: 60-90 km/hmotorway: 90-145 km/h
Trip duration:90 – 120 min.
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Commission´s timeline* and Conformity Factors
��������
01/2016
1st package• RDE procedure
2nd package• CF1 and CF 2 for NOx
3rd package• CFs for PN• cold start
4th package• in service conformity
regulation (ISC)
07/2015 07/2016 01/2017
*planned adoption date
2018 20202017 20212019
CF1: 2,1new TA
CF1: 2,1new cars
CF2: 1,5new TA
CF2: 1,5new cars
Decisiontimeline
Introductiontimeline
TA: Type Approval
NOx
• CF1: 2.1 (moderate); +60% (extended)**
• CF2: 1.0+margin (0.5) *** (moderate); +60% (extended)**
• to be achieved for the complete trip and separately for the urban part** moderate and extended refers to ambient conditions (temperature and altitude)*** annual review and revision starting in 2017 with the objective to reach CF 1.0 not later than in 2023 (0 ≤ x ≤ 0.5)
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CO2 targets and emissions2014 performance of the top-selling EU passenger ca r manufacturers
Source: ICCT - “CO2 emissions from new passenger cars in the EU: Car manufacturers’ performance in 2014” - published July 2015
PSA Toyota
Renault-Nissan FordFiat (incl. Chrysler)
Volkswagen
Average
GM
BMW
Daimler
0
20
40
60
80
100
120
140
160
180
1100 1200 1300 1400 1500 1600 1700
CO
2e
mis
sio
n in
g/k
m
fleet average vehicle weight in kg
2015
target line
2020
target line
10% market
share
-27%
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GAS
DIESEL
Alternative Fuels (CNG, LPG)
Electric + Fuel Cell
Source: IHS, August 2015
LDV Engine Production by Fuel Type
CAGR: 2.8%
Gasoline dominates LDV market
68 69 71 74 76 78 79 81 83
18 18 19 19 20 21 21 21 22
0
20
40
60
80
100
120
2014 2015 2016 2017 2018 2019 2020 2021 2022
Mil
lio
n V
eh
icle
s
CAGR: 2.7%
CAGR: 1.7%
CAGR: 29.2%
35
Diesel key in reaching CO 2 targets
20 – 25% more fuel efficient and 15% less CO2 than equivalent gasoline cars
Euro 6b diesel engines (clean diesel) remove 99.9% of number of particulates
Clean diesel cars (Euro 6c – stage 2) are as clean as equivalent gasoline cars
Diesel essential for compliance withCO2 and fuel efficiency requirements
36
HDD emission legislation roadmap
HDD 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Europe EU V EU VI a,b EU VI c
North America EPA10 GHG Regulation, Phase 1 GHG Regulation, Phase 2
Japan JP 09 JP 16
South Korea EU V EU VI EUVIc?
Brazil EU III EU V EU VI ?
Russia EU III EU IV EU V
India (Main Cities) BS IV BS V
India (Nationwide) BS III BS IV BS V
China (Beijing) Beijing IV Beijing V EU VI ?
China (Nationwide) CN III CN IV CN V
NRMM 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
EuropeStage
IIaStage IIIb Stage IV StageV
North America Tier 3b Tier 4a Tier 4b
Japan Tier 3b Tier 4a Tier 4b
South Korea Tier 3b Tier 4a Tier 4b
Brazil Tier 3a Tier 3b Tier 4a ?
37
Exhaust systems for heavy duty diesel cars
Euro VIEuro IV/V
HC/CO/NOx after-treatmentpartially particulate control
+ particulate after-treatment+ real driving emissions
DOC cDPF SCR ASCDOC cDPF SCR ASCDOC SCR ASCDOC SCR ASC
DOC PFF* SCR ASCDOC PFF* SCR ASC
*Partial Flow filter (open filter device)
38
Rechargeable Battery Materials
39
A close fit with megatrends
more stringentemission control
electrification of the
automobile
resourcescarcity
MegatrendsTransportation: fuel-based towards electricity-based
Electricity generation: increasing share from non-fossil sources (wind, sun, bio, hydro,…)
Metal-based functional materials enable recyclability
40
Umicore
offering
A leading player in the industry
Market
characteristics
• Cathode material is important to performance and cost of a Li-ion battery
• Li-ion battery technology is established reference for portables and automotive applications
A broad spectrum of metal-based materials used in Li-ion batteries
Umicore is a leading cathode material supplier with a large industrial footprint. We have produced enough cathode materials to:
Provide a smartphone to every person on the planet
Power more than 1 million EVs
Technology leadership and a proven quality track record combined with astrong application know-how are key for business success
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A global presence
R&D and
Industrialization
• Product R&D (KR, JP, BE)• Process Development (BE,
KR)• Engineering (KR)
• Battery Lab (KR, JP, BE)
Operations
• LCO, NMC (KR,PRC)• LFP (BE)• ISO9001/14001/18001• TS16949
Customer Teams
• Dedicated teams• Sales & Marketing• Applied Technology
• in EU, US, KR, JP, PRC, TW
Total RBM workforce:
approx. 500 people
Application Technology
42
Unique integration in the value chain
Portable electronics
Powertools
(P) HEV / EV
E-bikes
Stationarypower
Li-ion rechargeable batteries
ApplicationProduct End useMetalRaw material
residues
residues
Recycling & intermediates
Umicore occupies a unique position in the value cha in guaranteeing high speed to market, supply security, and responsiveness to customer needs
43
Unique industrialization capabilities
Two decades of market presence in cathode materials for Li-ion batteries
Established industrial footprint close to the customer
Strong industrialization capabilities building on historical Umicore key competences
Process innovation fuels productivity improvements while maintaining highest quality standards (stringent automotive standards)
Integrated process flows with guaranteed access to critical raw materials allows an agile market approach
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Supportive market conditionsBase case
PortableSocietal driver
ElectrificationRegulatory driver
Energy Storage SystemRegulatory driver
The main growth driver will be vehicle electrification
0
200
400
2015 2020 2025
Rechargeable battery market ( GWh)
45
Exciting upside potentialHigh case
0
200
400
2015 2020 2025
Rechargeable battery market ( GWh)
PortableSocietal driver
ElectrificationRegulatory driver
Energy Storage SystemRegulatory driver
The main growth driver will be vehicle electrification
46
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Electronics
E-PTW
Power tools
Other
Market focus:Portables
71%
19%
5% 5%• Main Li-ion market segment
today driving material technology directions
• Smart phone, tablet and notebook applications are the volume drivers in the electronics subsegment
• Electric Power Two-Wheels is a new growth driver based on similar battery and material technologies
• Market growth rates stabilizing towards 4-6% p.a.
47
Market focus:Electrified transport
5% 5%• Market segment is very diverse (automotive, heavy duty, marine, aviation) though near-term driven by automotive
• Car market continues on growth track
• Electrification roll-out geographically and technologically diversified
2015 2020
ICE70%
1%
ICE36%
61%
Micro HEV / HEV
pHEV / EV3%
Total automotive production by drivetrain
29%
Micro HEV / HEV
pHEV / EV
47
48
48
Market focus:Electrified transport
Understanding Li-ion battery requirements for automotive subsegments
Selecting most cost effective Li-ion battery system for a given Power to Energy requirement
Expanding to small delivery vans, utility vehicles and e-buses
0.4 1 10 25 75 50 200
Micro HEV HEV pHEV EV medium EV long Delivery van E-bus
Segments Battery Size (kWh)
49
49
Market focus:Electrified transport
• Aligning the right material technology and production capacities with the specific market demand profiles is crucial
• Energy, more specifically ‘Cost of Energy’ ($/kWh), is a key driving force for material choices in Li-ion battery technology
• Additional user requirements determine material technology decisions (eg. fast charge capability, cold cranking,…)
Micro hybrid
Hybrid
Plug-in hybrid
Full electric
E-bus
47%
21%
3%
7%
22%
Share of automotive battery in 2020 in GWh
50
Market focus:Energy Storage Systems
• Li-ion based storage systems serve only a niche segment
• Industrial power grid connected systems offer the main opportunity
• Increasing non-fossil electricity forces regulators to define ‘minimum’ connected electricity storage buffers to guarantee power grid stability
• Reliability and long-term TCO form the value proposition
• Technical requirements and market size do not require application specific material design optimization
51
Growth strategy 2015-2020
Cost leadership through economies of scale, process development, competitive sourcing (jointly with CSM) and operational excellence
Establish technology-based leadership in xEV and continue massive industrial expansion
Maintain leadership in portable applications
Reach sustainable profitability
52
Key takeaways
Li-ion is the technology of choice for portable and automotive segments in the coming decade
Umicore is uniquelypositioned to capture this growth due to its customer proposition
Market demand remains strong and transport electrification is the main growth driver
• Excellent cathode materials technology and freedom to operate
• Production expertise and ability to scale up volumes
• Integrated supply chain
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Rechargeable Battery MaterialsFlorange Plant
54
Euro 6 SCR diesel exhaust line
The diesel exhaust line
DieselOxidation Catalyst
DieselParticulateFilter
SelectiveCatalystReduction
The oxidation catalyst (DOC) converts the unburnt hydrocarbons (HC) and carbon monoxide (CO) to water (H2O) and carbon dioxide (CO2)
The particulate filter (DPF) removes fine soot particles
The SCR catalyst and Adblue® transform oxides of nitrogen (NOx) into water and nitrogen
Euro 5
Euro 6 SCR
55
Markets and Technologies products at Florange
DieselOxidation Catalyst
DieselParticulateFilter
SelectiveCatalystReduction
On-RoadHeavy DutyDiesel
Off-RoadHeavy DutyDiesel
Florange Florange Florange
Light DutyDiesel
Other sitesUmicore
Other sitesUmicore
Florange
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2012-
2015
2011
2007 Acquisition by Umicore
The Florange site chosen as production site for Heavy Duty and SCR catalysts for the European market
Industrial transformation of the site: Construction and startup of three production lines in place of the historic lines
History and industrial transformation of the Florange site
Euro 6
57
The industrial transformation of the Florange site in images
2012
2014
2013
2014
58
A few figures...
• Staff levels: ~130 people (including temporary staff)
• Organised into five teams (24/7/365)
• Certifications:
• ISO / TS 16949
• ISO 14001
• OHSAS 18001
59
3
DRYING and CALCINATION
OVEN2
COATING
1 PREPARATION
of the WASHCOAT
Put in suspension
and milled
Basic principles of the process (1)
60
OVEN OVEN
WASHCOAT preparation
A
1st PASS 2nd PASS
WASHCOAT preparation
B
Basic principles of the process (2)
61
Site plan
LabCloakrooms / Staff restaurant
Offices
Washcoat SCR
Storage
Washcoat metals
PK1
New Lab -
Offices
LINE 3
STORAGERaw materials
STORAGEFinished products
LINE 2
LINE 1
StorageStorage
62
Safety
• Last accident with production disrupted 29 January 2007
• Safety instructions for visits:
• Safety glasses mandatory
• Safety shoes recommended, but not mandatory, for
visitors
• Yellow jacket to be worn
• Photography not allowed
