investor meeting shanghai, 5 march 2013 - umicore · requires larger battery and still automotive...
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Investor meetingInvestor meetingShanghai, 5 March 2013Shanghai, 5 March 2013
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Complete automotive catalyst system offer for reduction of exhaust gas emissions
One of 3 world leaders•
30% market share in light duty market (passenger cars)
•
Establishing position in heavy duty segment
R&D intensive business with R&D expenditure > 10% of revenues (ex PMs)
Globally positioned•
5 regional R&D/test centres
•
11 plants, on 5 continents
Automotive Catalysts At a glance
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What is an automotive catalyst?
Combustion engines produce toxic emissions due to incomplete combustion of fuel and the generation of by-products
Automotive catalysts are needed for reducing these toxic emissions
Legislation enforces this by setting emission limits for vehicles Non-toxic by-products
•
Carbon Dioxide (CO2 )•
Water (H2 O)•
Nitrogen gas (N2 )Canning
•
Metal housing•
Insulation
Toxic pollutants•
Carbon Monoxide (CO)•
Hydrocarbons (HC, NMOG)•
Nitrogen Oxides (NOx )•
Particulate Matter (PM)
Washcoat•
(Inert) fine particulate support materials (Al, Ce, Zr, …)
•
Supporting precious metals (Pt, Pd, Rh)
Substrate (ceramic or metallic)
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Development phaseCatalyst & emission system architecture
Contract negotiation
Business model
End-of-life phase
Substrate manufacturer
Recovery of precious metals from automotive catalysts (in business unit PMR)
Catalyst manufacturer Canner
End consumer
Car/engine manufacturer
Production phase
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Business drivers
Growing global light duty vehicle production•
Light duty vehicles (LDV): passenger cars, SUVs and light trucks
•
Heavy duty diesel (HDD): trucks and buses
•
Non-road applications
Emission legislation and air quality standards are becoming more stringent in developed and emerging markets
CO2 emission reduction•
Impacts engine complexity and fuel types used in different regions
•
Determines choice of powertrain
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Car production
0
10
20
30
40
50
60
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Umicore estimate based on external data sources
[M vehicles]
Japan/Korea
North America
Europe
Global light duty vehicle production to grow mainly in emerging markets
Car production
0
10
20
30
40
50
60
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Umicore estimate based on external data sources
[M vehicles]
Middle East/AfricaSouth AmericaSouth AsiaChina
Established Markets Emerging Markets
Source: Umicore estimates based on external databases
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Global powertrain development Internal Combustion Engine (ICE) remains dominant
Contains combustion engine Requires catalyst system
Car production
0
20
40
60
80
100
120
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Umicore estimate based on external data sources
EV (Electric Vehicle)PHEV (Plug-in Hybrid Electric Vehicle)HEV (Hybrid Electric Vehicle)ICE flex fuel, CNG, LPGICE gasoline (Internal Combustion Engine)ICE diesel
[M vehicles]
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Challenging CO2 emission targets pushes advanced engine configurations
•
Down-sized turbo-charged gasoline
•
Gasoline direct injection
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Lean burning gasoline engines
•
Diesel
•
(Flex fuel)
•
Start-stop mechanism
•
HEV: Mild HEV Full HEV
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PHEV: Parallel Range extender
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EV: BEV FCEV
Advanced ICE configurations
Electrification of the vehicle
Requires more complex emission control catalyst solutions
Requires larger battery and still automotive catalyst (except EV)
ICE Internal Combustion Engine-powered vehicleHEV Hybrid Electric Vehicle
PHEV Plug-in Hybrid Electric VehicleEV Electric Vehicle
BEV Battery-powered Electric VehicleFCEV Fuel Cell-powered Electric Vehicle
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Umicore’s product offer covers all powertrain possibilities
ICE HEV PHEV EV
Normal Start-stop Mild Full Parallel system
Range extender BEV FCEV
Emission control catalyst
Relative size +++ +++ +++ ++ ++ +
No emission control catalyst
Relative complexity + + + ++ +++ +
Battery
Relative size + + ++ ++ +++ ++
Relative complexity + ++ +++ ++ ++ ++
Fuel cell No fuel cell +++
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Global emission legislation present in most regions and becoming more stringent
US regulation
EU regulation
Japanese regulation
No legislation
EU inspired regulation
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Regional positionsMarket leader (#1 or #2 position)
Smaller player (distant #3)
Circles indicative of 2012 light duty vehicle production volumes (≠
catalyst revenues)
Umicore’s global leadership position in light duty
NorthNorth AmericaAmerica
EuropeEurope
ChinaChina
KoreaKorea
SouthSouth AmericaAmerica
JapanJapan
IndiaIndia
RussiaRussia
AustraliaAustralia
South EastSouth East AsiaAsia
Middle EastMiddle East AfricaAfrica
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Umicore’s global footprint in automotive catalysts
Burlington Canada
Tulsa USA
Himeji Japan
Onsan Korea
Ansan Korea
Suzhou China
Rheinfelden Germany
Karlskoga Sweden
Hanau Germany
Florange France
Americana Brazil
Auburn Hills USA
Port Elisabeth South Africa
Production plant
Production plant & R&D / Techn. dvlpt. centre
R&D / Technology development centre
Pune India (under constr.)
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Umicore building position in Heavy Duty Diesel
Umicore decided in 2005 to step in HDD market, starting R&D efforts
Technology gap with competitors closed by 2008-2009, followed by market positioning
Contract wins in all regions, with relatively more success in regions where legislation is changing in near future, i.e. Europe and emerging markets
Existing HDD test capability set up in all regions
HDD production capability set up in all regions, tailored to awarded contracts•
Dedicated HDD facilities in Europe and China (under construction)
•
Flexible capacity in other regions
Umicore continues to position itself for additional HDD business to be awarded in the near future
Market status in Asia Market status in Asia
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Moderate growth of domestic light duty vehicle market expected in Japan and Korea
Korean and Japanese OEMs strongly positioned worldwide•
Japanese OEMs have strong growth path globally and especially South East Asia
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Strong position of Hyundai/Kia in Korea with global growth path
Decision making power remains strongly in the home country•
Strong local automotive catalyst presence is therefore essential
OEM’s development focus for domestic and global markets•
Gasoline ICE mainly
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Strong focus on electrification
Emission legislation in Japan changing beyond 2015
Car production
0
2
4
6
8
10
12
14
2011
2012
2015
2019
XEVICE flex fuel, CNG, LPGICE gasolineICE gasoline DIICE diesel
Source: Umicore estimatebased on external data sources
[M vehicles]
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Umicore’s market position in Japan and Korea
Umicore has a leadership position in Korea•
Ordeg: JV (50:50) with OCI
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Catalyst production started in 1987
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Production plant in Onsan
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Technology development centre in Ansan
Distant follower in Japan•
Umicore Shokubai: JV (60:40) with Nippon Shokubai
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Catalyst production started in 1993
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Production plant and R&D centre in Himeji
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New technology development centre being built near Nagoya (due by end 2013) replacing existing centre in Himeji
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Core strategy to increase position with Japanese OEMs
Onsan plant, Korea
Himeji plant, Japan
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Continued strong growth of vehicle production expected•
Powertrain development mainly focused on conventional gasoline engines
•
Diesel gaining momentum
Legislation follows European norms with a 3 to 6 year lag
Continued strong growth of light duty vehicle production expected in China
Car production
0
5
10
15
20
25
30
35
2011
2012
2015
2019
XEVICE flex fuel, CNG, LPGICE gasolineICE gasoline DIICE diesel
[M vehicles]
Source: Umicore estimatebased on external data sources
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Euro 3 Euro 5Euro 4 Euro 6
C3 C4
C3 C5C4
Chinese emission legislation closely following European standards
2000 2005 2010 20202015
BeijingChina gasoline
C5+
C3 C5C4 C5+
C3 C4
C5
Countrywide
Beijing
Countrywide
Europe
China diesel
C4
C3
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Umicore’s market position in China
Umicore has a leadership position in China
Local production capacity since 2005
Platform exposure with both global and domestic OEMs
Production plant and technology development centre in Suzhou (100km east of Shanghai)
Recent and on-going investments•
Flexible production line (LDV and HDD) commissioned end 2012
•
Technology development centre under construction in Suzhou commissioned end 2012
•
Dedicated HDD line (SCR catalysts) under construction and due by H1 2014
Suzhou plant, China
Suzhou tech centre, China
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Markets in India and South-East Asia
Car production growing with economic development of these countries•
Large part of diesel
Legislation currently at low level•
Following European legislation with 5-7 year delay
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Very low durability requirements
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No in-use control
Car production
0
2
4
6
8
10
12
14
2011
2012
2015
2019
XEVICE flex fuel, CNG, LPGICE gasolineICE diesel
[M vehicles]
Source: Umicore estimatebased on external data sources
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Umicore’s market position in India and South-East Asia
Already supplying these markets in a minor way through imports
Ready to invest in South-East Asia when markets develop further
Building production facility near Pune in India•
Commisioning planned for mid 2014
•
Serving both global and domestic OEMs
Pune plant, India
ConclusionConclusion
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Umicore Automotive Catalysts
Automotive catalysts market set to grow faster than vehicle production due to more stringent emission legislation in all the major markets
Umicore is a global leader for light duty applications•
Well positioned in Europe, North America and Korea
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Strongly positioned in fast growing Chinese and Brazilian markets
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Aiming to increase position with Japanese OEMs
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Seizing opportunities in India
Umicore is gradually gaining ground in HDD, supported by customer awards
Umicore is continuing to invest in manufacturing and testing capabilities
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Forward-looking statements
This presentation contains forward-looking information that involves risks and uncertainties, including statements about Umicore’s plans, objectives, expectations and intentions.
Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Umicore.
Should one or more of these risks, uncertainties or contingencies materialize, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected.
As a result, neither Umicore nor any other person assumes any responsibility for the accuracy of these forward-looking statements.
