Our steels drive automotive solutions around the world

Transcription

1 Global Auto & Mobility Solutions Our steels drive automotive solutions around the world February 2011 Last updated: 7 June

2 Contents 1. Who are we? ArcelorMittal Global Auto & Mobility Solutions 2. One face to the customer 3. Global R&D Products research Process research Steel solutions research 4. Our global footprint State-of-the-art plants close to our customers 5. Unmatched downstream integration ArcelorMittal Tailored Blanks ArcelorMittal Tubular Products ArcelorMittal Distribution Solutions (AMDS) and Steel Service Centres Stampers (associates) 6. Corporate responsibility & life cycle analysis 1

3 Snapshot of the ArcelorMittal Group 2

4 The world s leading steel and mining company The world's leading steel and mining company, with a presence in more than 60 countries in 2017 Leader in all major global steel markets, including Automotive, Construction, Household appliances and Packaging, with leading R&D and technology An industrial presence in 18 countries in 2017 exposes the company to all major markets, from emerging to mature Truly global: the largest producer of steel in the EU, North and South America and Africa, a significant steel producer in the CIS region, and a growing presence in Asia, including investments in China and India In 2017, ArcelorMittal had revenues of $68,7 billion and crude steel production of 93.1 mio tonnes, while own iron ore production reached 57.4 mio tonnes. Underpinning all our operations is a philosophy to produce safe, sustainable steel 3 3

5 ArcelorMittal s main markets Automotive Worldwide no.1 supplier for automotive steels with a leading market share of around 17%. Worldwide industrial presence via about 40 coating lines in Europe, North America, South America and Africa. These facilities keep us in close proximity to our customers around the world, and enable us to provide them with global solutions. Construction Globally, the largest single market for steel, comprised of diversified products. Emerging markets represent more than 50% of the square meters constructed each year globally. ArcelorMittal is a world leader of steel products delivered to the building and construction sector. Domestic appliances ArcelorMittal serves more than 30% of the steel demand in the European market for domestic appliances. Successful partnerships with major domestic appliance manufacturers. Energy A wide range of high-performance steel products and services for a wide variety of industries, including oil and gas exploration and production, transport, refining, and storage, as well as in the thermal, nuclear and renewable energy industries. Transport Our steel is widely used in the transport industry, from rail, to shipbuilding, to cable cars. Packaging New packaging products and concepts constantly designed to achieve differentiation by steel solution (bottle can, easy open end...). The leader in automotive steels 4

6 ArcelorMittal key figures Sales (US$ billion) Ebitda (US$ billion) Operating income / (loss) (US$ billion) (4.2) Net income / (loss) (US$ billion) (7.9) Steel shipments (million tonnes) Crude steel production (million tonnes) Own iron ore production (million tonnes)* Allocation of employees according to geographic location (full-time equivalent)** EU 28 (39%) Other European countries (14%) North America (14%) South America (9%) Asia (16%) Middle East and Africa (5%) *Own iron ore and coal production excluding strategic long-term contracts. ArcelorMittal is the world s leading steel and mining company 5

7 Geographical reach Market position by region Leader in North America No 1 in Europe Leader in the CIS Emerging markets continue to offer the best organic growth potential for ArcelorMittal Superior demand growth potential Leader in Latin America* Leader in Africa We have the platform and experience: Already the steel market leader in Latin America, CIS and Africa ArcelorMittal Others We also have JV projects in the Middle East and China * Latin America includes Mexico. Around 35% of our steel is produced in the Americas, 47% in Europe, and 18% in other regions including Kazakhstan, South Africa and Ukraine. Industrial and commercial network focus on market sustainability and growth opportunity 6

8 About Global Auto & Mobility Solutions 7

9 What s a car made of? Various metals: copper, zinc, 4% Iron 8% Aluminium 9% Plastic, glass and other materials 22% Steel 57% (44% flat / 13% long) 8

10 Automotive worldwide key figures Revenues USD 11.6 billion USD 11.2 billion USD 12.3 billion Flat steel deliveries 14.0 million tonnes 14.4 million tonnes 14.0 million tonnes We are the global leaders in automotive steel 9

11 Global presence and reach Unique global presence allows worldwide supply and proximity to OEM decision centres Automotive production facilities Alliances & JV Commercial Teams R&D Centers Vehicle production 2016 > 20 M veh > 15 M veh & < 20 M veh > 10 M veh & < 15 M veh > 5 M veh & < 10 M veh > 2.5 M veh & < 5 M veh > 1 M veh & < 2.5 M veh < 1 M veh Source: LMC figures for Western and Eastern Europe and Russia; IHS figures for all other regions; personal cars and light commercial vehicles < 6t Global supplier with increasing emerging market exposure 10

12 ArcelorMittal as a key partner for the automotive industry ArcelorMittal helps carmakers meeting the geographical and technology challenges ArcelorMittal is not only a global steel supplier, we are also a global steel solution provider for the automotive industry thanks to: Our technological know-how and leading position in Advanced High Strength Steels (AHSS) Close relationships with our customers across the world, often working with them from the vehicle design stage Continuing investment in Research & Development Our ability to provide highly engineered solutions that help make vehicles lighter, safer and more fuel-efficient Global availability of our advanced steels ArcelorMittal is a global steel solution supplier 11

13 Exploring the properties of steel like no one else We explore and exploit steel s unique properties like no one else. That s why automakers invite us to help them create the safer, lighter, cleaner vehicles of tomorrow. We hit targets for weight reduction without ever compromising on safety, style or affordability. And with the lowest-possible carbon footprint and cost. We are constantly developing: products, solutions and design partnerships. Each time, we discover new ways to give our customers creative freedom and consumer appeal. Our next-generation steels serve the world s fastest-growing and most developed markets. Our reach, product portfolio and expertise are global. Above all, we understand the complexity our customers face. It s why we are singularly driven to imagine, design and deliver the future. Steel: driven by design 12

14 Automakers trust us to help them create the safer, lighter, cleaner vehicles of tomorrow, worldwide We are proven global technical leaders and innovators, working in close collaboration with our customers right from the start. Our resident-engineer programme was an industry first and it continues to build deep, lasting relationships. Our resident engineers, who are embedded in global customer teams, work with automakers to incorporate the latest advanced steel grades into their designs. Our history of collaboration with the automotive industry means that we understand what it takes to add value at every stage of production, when the pace is up and the pressure is on. And, thanks to our in-depth knowledge of steel s potential, the results of this collaboration are uniquely innovative. Driving tomorrow, today 13

15 ArcelorMittal preferred AHSS supplier AHSS share of total steel demand AHSS evolution* 40% 35% 30% 25% 20% 15% 10% 5% 0% ArcelorMittal market share** ArcelorMittal is maintaining overall market share in Europe, and increasing in NAFTA Our AHSS share is higher than overall market share As the technology requirements to develop and produce new AHSS like Fortiform are higher, our share in these products has further growth potential * Source: Ducker **Source: Regional ArcelorMittal Marketing Intelligence Market share in AHSS exceeds overall share 14

16 ArcelorMittal: the leading supplier to the automotive industry worldwide 15

17 Technology leadership ranking by customers Technology In NAFTA, 11 out of 12 customers ranked ArcelorMittal the #1 supplier on Technology Leadership In Europe, 11 out of 14 customers considers ArcelorMittal the technology leader of the steel industry Automotive awards ArcelorMittal received the Built in Quality supplier award from Toyota Europe on Thursday 9 February The ceremony took place at the Toyota Motor Manufacturing plant in Burnaston (UK). The Built in Quality award was presented by Toyota Europe in recognition of ArcelorMittal s impressive quality performance. Majority of OEMs in Europe and NAFTA rank ArcelorMittal #1 in Technology 16

18 ArcelorMittal: recognised by the global automotive industry February 2017: Built-in Quality supplier award from Toyota Europe: May 2016: Best Supplier Award (Technical Cost Savings) from PSA: March 2016: ArcelorMittal selected for Volkswagen's FAST initiative: March 2016: General Purchasing award from Hyundai Motor Brazil: June 2015: Best Supplier award from PSA in the Value Creation category for the introduction of the new Fortiform range of cold stamping steels March 2016: GM Supplier of the Year for the 3rd consecutive year Awards as a sign of recognition from customers 17

19 Contents 1. Who are we? ArcelorMittal Global Auto & Mobility Solutions 2. One face to the customer answering the global challenges 3. Global R&D Products research Process research Steel solutions research 4. Our global footprint State-of-the-art plants close to our customers 5. Unmatched downstream integration ArcelorMittal Tailored Blanks ArcelorMittal Tubular Products ArcelorMittal Distribution Solutions (AMDS) and Steel Service Centres Stampers (associates) 6. Corporate responsibility & life cycle analysis 18

20 One face to the customer 19

21 One face to the customer Dedicated automotive customer teams designed to offer tailored value creation with: Global account managers facilitate global relationships within the automotive industry Global technology coordinators anticipate and facilitate product implementation Resident engineers are embedded within many of our automotive customers so that they can provide customised engineering support and identify opportunities for future innovation. Regional teams manage regional business Customer team organisation: putting the customer centrally We are close to our automotive customers worldwide 20

22 Overview: Global Auto & Mobility Solutions organisation Integrated global management Executive Vice President in charge of: Head of Strategy & CTO, R&D, Commercial Coordination and Global Auto & Mobility Solutions Controlling & Strategy, Communication and Marketing & Pricing Brian Aranha VP Global Auto & Mobility Solutions Jean-Martin Van der Hoeven Global R&D Automotive portfolio Jean-Luc Thirion structure to support automotive customers throughout the world. The only auto steel maker with a worldwide presence, delivering a large scale of products, solutions and services to automotive customers Same high quality focus in all regions CMO NAFTA CMO Europe CMO South America CMO South Africa CMO China (VAMA) Peter LeBlanc Philippe Aubron André Munari Nic De Jager Jurgen Cobbaut Global Account Managers / Global Technology Coordinators operate across the regions Activities between regions are coordinated to manage the global perspective 21

23 Answering the geographical challenges Global platforms: Carmakers demand that the same products be delivered to their production facilities worldwide, to support global platforms that are designed centrally. The percentage of vehicles built on global platforms will increase from 54% in 2016 to 60% in 2021* Regulation: Shift in product needs to meet tightening regulatory targets for fuel economy as well as passenger safety during crash events Reduction of CO 2 emissions and shift to electric/hybrid vehicles Recycling and Life Cycle Assessment (LCA) ArcelorMittal offers the specific solutions to address these challenges ArcelorMittal maintains both its geographical and its technological leadership in the automotive market * Source ArcelorMittal Marketing ArcelorMittal is fully committed to support car makers worldwide in the challenges on passenger safety, weight savings and reduction of CO 2 emissions 22

24 Automotive growth in developed world USA / Canada and EU28 + Turkey vehicles production million units USA+CANADA (LMC) USA+CANADA (IHS) EU28+Turkey (LMC) USA and Canadian automotive production forecast to stabilize at ~14m units level Stability supported by replacement (avg. age of fleet 11.5Yrs), continued economic and population growth EU28 and Turkey production recovered in 2016 with further growth potential Developed market vehicle production rates increasing; recovery ongoing 23

25 Automotive emerging market growth China vehicle production ( 000s) 35,000 30,000 China 26,975 25,000 20,000 15,000 10,000 5, ,255 China production to grow steadily by +6mvh in 2007 to ~33mvh by 2024 India production to increase ~ 80% by 2024 (from 4.2mvh in 2014 to 7.6mvh in 2024) Brazil, India, Russia & Mexico vehicle production ( 000 s) 8,000 7,000 Russia India Brazil Mexico 7,564 6,000 5,000 4,171 4,695 4,000 3,487 3,000 3,166 2,129 2,365 2,000 1,000 1,193 0 Mexico production is expected to increase by 35% between Brazil production is expected to have a slow recovery Russia production is expected to recover and reach 2013 level in 2022 * Source: IHS Strong growth expected in China, Mexico and India 24

26 EU and US CO 2 emission targets EU and US emissions performance C0 2 (g/km) (159) Historical performance 2007 (210) Europe USA 2015 Target (165) 2015 Target (119) 2021 Target Target (101*) * 101 g/km of CO 2 = 54.5 mpg Regulatory targets 10 kg of weight saved reduces ~1g of CO 2 per km** Europe: On track to achieve the regulatory CO 2 emissions targets EU regulation on new car fleet average CO 2 emissions of 130 g/km by 2015 has been met in 2015 (achieved average of 119 g/km) rapid progress in recent years New standards post 2021 under review expected to be lower than 95g/km increase the challenge US: 2025 target is more challenging Maximum CO 2 emissions target of 170g/km for 2015 (achieved 165g/km) further improvements required to meet the 2025 target of 101g/km The US fleet is composed of larger cars making the CO 2 target much harder to achieve 2015 emissions targets met greater challenge ahead * Average emissions of new passenger cars sold in these years; ** Market consensus ( eg PSA, Renault, McKinsey) ; Source: European Federation for Transport and Environment (T&E), EPA, ArcelorMittal Corporate Strategy analysis, Automotive Worldwide update 25

27 US fuel economy breakdown (MPG) 60 Fuel Economy (MPG) Technologies to meet US 2025 fuel economy mandate MPG 54.5 MPG A range of technologies are being implemented by automakers to reach the 54.5 MPG target. Power train, electrification, aerodynamics and rolling resistance are the largest contributors Weight reduction is necessary to close the gap and compensate for under achievement by other technologies 20% BIW weight reduction ie required to meet the 54.5 MPG target Source: NHTSA Volpe Transportation Research Center CAFE Compliance and Effects Model 26

28 ArcelorMittal automotive strategy Four key pillars of ArcelorMittal automotive strategy New products and solutions Develop new products and solutions to meet OEM targets for weight reduction and crash performance Downstream network Pursue downstream technology solutions through partnerships and wholly owned subsidiaries. Quality and service leadership Make existing products and solutions available wherever we have automotive production facilities Geographical expansion Expand our geographic footprint into emerging markets Four pillars to answer the key challenges and capture opportunities 27

29 Contents 1. Who are we? ArcelorMittal Global Auto & Mobility Solutions 2. One face to the customer 3. Global R&D Products research Process research Steel solutions research 4. Our global footprint State-of-the-art plants close to our customers 5. Unmatched downstream integration ArcelorMittal Tailored Blanks ArcelorMittal Tubular Products ArcelorMittal Distribution Solutions (AMDS) and Steel Service Centres Stampers (associates) 6. Corporate responsibility & life cycle analysis 28

30 Global R&D for automotive 29

31 Global R&D 2017 Facts & Figures 1,400 full time researchers 2017 spending of $278m Broad, comprehensive portfolio and programmes addressing business needs Worldwide network of laboratories: 12 labs in Europe and Americas Budget spending by focus area Product research (%) 60 Exploratory 8% Product & Application 55% Automotive Plates, Tubes & HR for Energy General Industry* Construction Other Process 37% 10 0 *Packaging, appliance, metal processing, electrical steels R&D effort fully aligned with Group strategy: geography, value chain, product differentiation 30

32 Global R&D Other 2017 key figures 151 new process solutions deployed 47 new products and solutions launched 57 new inventions protected 550+ active patent families 100+ ongoing R&D programmes R&D effort fully aligned with Group strategy: geography, value chain, product differentiation 31

33 Technology leader for automotive Key figures 1,400 full-time researchers in a worldwide network of 12 laboratories Global R&D budget of 278 million US$ in 2017 At any time, we have around 80 new products under development More than 30% of all research is devoted to automotive market Innovation is made in all fields required by automotive: Advanced high strength steels (AHSS) Innovative coatings Hot stamping Laser welded blanks (LWB) Tubular products Long products All product innovation is supported by high level process expertise R&D programmes are underway to meet the automotive needs beyond 2017 ArcelorMittal will keep making significant efforts in R&D for innovation to meet the key challenges of the automotive industry 32

34 Global R&D labs dedicated to the automotive industry Canada Hamilton USA East Chicago Belgium Gent* France Maizières-lès-Metz Montataire Brazil Tubarão** *Focus on R&D for electrical steels **Focus on steel innovations for the automotive, energy, construction, machinery and white goods industries. Main missions: Develop new steels Improve the in-use properties of steels Find anti-corrosion solutions Invent breakthrough products Ensure technical service to customers Predict the behaviour of steel 565 people are adapting steel to the evolution of automotive industry needs 33

35 Changing dynamics of the automotive market Emergence of China as the largest market for automobiles Fundamental changes in the auto industry Consolidation to cut costs Mega platforms to reduce development costs Tightening standards for emissions and passenger safety Reduction of CO 2 emissions Penalties (EU and US) Shift to electric/hybrid powertrains Recycling and Life Cycle Assessment (LCA) Specific answers from the steel industry available ArcelorMittal is fully committed to support car makers worldwide in the challenges on passenger safety, weight savings and reduction of CO 2 emissions 34

36 Answering the technological challenges Global platforms: Carmakers demand that the same products be delivered to their production facilities worldwide, to support global platforms that are designed centrally. The percentage of vehicles built on global platforms will increase from 46% in 2014 to 63% in 2020 Regulation: Shift in product needs to meet tightening regulatory targets for fuel economy as well as passenger safety during crash events Reduction of CO 2 emissions and shift to electric/hybrid vehicles Recycling and Life Cycle Assessment (LCA) ArcelorMittal offers the specific solutions to address these challenges ArcelorMittal maintains both its geographical and its technological leadership in the automotive market ArcelorMittal is fully committed to support car makers worldwide in the challenges on passenger safety, weight savings and reduction of CO 2 emissions 35

37 Helping to meet the automotive industry s challenges Source: ICCT International Council on Clean Transportation Main challenges faced by the automotive industry: Stiff fuel economy and reduced emissions requirements Enhanced safety performance Escalating gasoline prices Sustainability, affordability Geographical car production shifts ArcelorMittal is fully committed to support car makers worldwide in the challenges on passenger safety, weight savings and reduction of CO 2 emissions 36

38 Contents 1. Who are we? ArcelorMittal Global Auto & Mobility Solutions 2. One face to the customer 3. Global R&D Products research Process research Steel solutions research 4. Our global footprint State-of-the-art plants close to our customers 5. Unmatched downstream integration ArcelorMittal Tailored Blanks ArcelorMittal Tubular Products ArcelorMittal Distribution Solutions (AMDS) and Steel Service Centres Stampers (associates) 6. Corporate responsibility & life cycle analysis 37

39 Products research Create competitive differentiation through enhanced or unique functionality, superior quality of our products While ensuring their manufacturability and delivery to our customers at the lowest possible cost Full range of flat products and long products, including bars and wire rods for forging / cold heading, bright drawing / spring steels and steel cord Products research: a common objective 38

40 A long tradition of innovation for the automotive market 1982: ArcelorMittal is involved in the development of High Strength Steels (HSS), used to improve car safety. 1986: ArcelorMittal starts the production of Extragal, the patented technology for Galvanized Exposed steel 1990: ArcelorMittal is the first steel company in the world to have resident engineers located at our automotive customers to provide customised engineering support. 1997: ArcelorMittal starts the production of Laser Welded Blanks in Uckange (France) 2003: ArcelorMittal started the production of Usibor 1500, the patented coated Ultra High Strength Steel for hot stamping, in Mouzon (France) 2010: ArcelorMittal starts rolling out S-in motion solutions to demonstrate the potential of Advanced HSS With over 1900 patents, ArcelorMittal is the technology leader for lightweight automotive steel solutions 39

41 Through innovation, steel remains the material of choice 3rd Generation AHSS Fortiform for cold stamping 2 nd Generation: TWIP, X-IP 1st Generation, phase 3: Usibor for hot stamping 1st Generation, phase 2 : Dual Phase (DP1180 since 2008), TRIP Steels, Martensitic(MS>1200MPa since 80 s) 1st Generation, phase 1: HSLA, HSS ArcelorMittal has developed a unique full range of coated Advanced High Strength Steels in the last 25 years This has impacted the automotive construction in an outstanding way Safety: Most vehicles get 5 stars NCAP rating today while the Volvo S40 was the first vehicle to get 4 stars in 1997 Weight saving: Body structures are 25% lighter than in the 1980s Environment: 6% less greenhouse gas emissions than in the 1980s Corrosion protection: 12 years is the mainstream guarantee for corrosion thanks to the huge share ArcelorMittal of coatedhas products developed a unique full range of coated Advanced High Strength Steels in the last 25 years 40

42 Broadening our product portfolio For more than 20 years, weight saving solutions have been developed through the regular increase of tensile strength of the Advanced High Strength Steels Increase of strength is generally done at the expense of formability (complexity of shapes) ArcelorMittal has developed 2 ways to change the game: Usibor and Ductibor hot stamping solutions Fortiform for cold stamping with outstanding combination of formability and strength Part stamped with Fortiform ArcelorMittal automotive steel: various products offer formability and strength 41

43 The broadest product offer in the world Elongation (%) Mild BH Emerging grades 10 MART Tensile Strength (MPa) ArcelorMittal steels for automotive cover all metallurgical families of steels and offer a full range of compromises between formability and weight reduction 42

44 Key differentiating new products Fortiform Fortiform S (HF/HSHF) Third-generation UHSS for cold stamping. Fortiform HS/HF steel allows OEMs to realize lightweight high-strength structural elements using cold forming methods such as stamping. Currently available in Europe; to be available in NAFTA in 2017 (Calvert). MartINsite A family of cold rolled fully martensitic steels with current tensile strengths from 900 to 1700 MPa. MartINsite Is perfect for anti-intrusion parts such as bumper and door beams. New higher tensile strength grades will be available for OEM qualification testing in mid Usibor Ductibor Press hardenable steels (PHS) / hot stamping steels offer strengths up to 2000 MPa. Usibor and Ductibor can also be combined thanks to laser welded blanks (LWB) to reduce weight while achieving optimal crash behavior.; Following Usibor 1500 and Ductibor 500 first-generation of PHS, Usibor 2000 and Ductibor 1000 are the second generation of PHS available on the market. icare A family of electrical steels for electrified power train optimization and enhanced machine performance, Save, Torque and Speed are specifically designed for a typical electric automotive application.. Widest offering of AHSS steel grades which can be implemented into production vehicles 43

45 Advanced and ultra high strength steels (AHSS and UHSS) development ArcelorMittal is developing new AHSS and UHSS steels for the automotive industry as it targets a full catalogue of products by This is ahead of deadlines to cut average fleet emissions to 95g/km in the EU by 2020, and 54.5mpg in the US by We are implementing new products, investing to produce these steels in key countries and working with carmakers to ensure the new steels are implemented correctly so OEMs can maximise weight savings. Usibor 1500 is currently the top-of-the-range steel for hot stamping. An even lighter solution, Usibor 2000, is currently under development. In late 2013, ArcelorMittal released its third-generation advanced high strength steel for cold stamping Fortiform. Using the latest steel solutions ArcelorMittal offers, we have calculated that carmakers can reduce the weight a car body by up to 19-20% compared to Emerging grades ArcelorMittal is developing the high strength steels of the future, today 44

46 Usibor Usibor is a press-hardened steel which was developed and patented by ArcelorMittal. Alloyed with carbon, manganese and boron, Usibor allows greater quenchability in the hot stamping process. Thanks to its very high mechanical properties after hot stamping, Usibor meets the requirements of our automotive customers for lighter vehicles and has been integrated into our S-in motion catalogue of solutions. Main features of Usibor 1500: Outstanding fatigue and impact resistance High hot formability No springback in the final parts Excellent corrosion resistance Substantial thickness and weight reduction Neutral cost in the manufacture of car bodies. Emerging grades ArcelorMittal is a world leader in the development of AHSS steels such as Usibor 45

47 Press hardenable steels for automotive Lightweight design of vehicles with hot stamping of Alusi pre-coated Usibor boron steel Very high strength (up to 2000MPa tensile strength) No springback, complex parts are feasible Very good corrosion-resistance Huge weight-saving potential for antiintrusion parts (up to 30%) Tailored properties with Laser Welded Blanks (LWB) with Ductibor Very fast growth all over the world Heated blanks before hot stamping Potential applications of hot-stamping technology (S-in motion solutions) Potential applications of Laser Welded Blanks Usibor - Ductibor (S-in motion solutions) Press hardenable steels have become a mainstream solution for weight saving - 46

48 The Elegance of Hot Stamping During Hot Stamping After cooling down

49 MartINsite MartINsite is a series of four grades of low carbon, low alloy steel. Offers some of the highest strength-to-weight ratios of any cold rolled steel. Typical applications include: Bumper reinforcement beams Door intrusion beams Belt line reinforcements Springs Brackets Clips Other metal stampings Emerging grades ArcelorMittal is a world leader in the development of AHSS steels such as MartINsite 48

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51 Fortiform third-generation advanced high strength steels for cold stamping TEl% (ISO) % weight reduction 10% weight reduction Fortiform UTS (MPa) High ductility combined with high cut edge stretching resistance and low bending radius Weldability /assembling capability Hydrogen embrittlement resistance 16 September 2014 AM/NS Calvert press trip 50 50

52 Fortiform meets the targeted 10% weight reduction Application example: front side member, validation in crash performance Reference: DP /1.9 mm 5.26 kg Solution: Fortiform /1.75 mm 4.70kg (-10.5%) Equivalent crash performances: Good crushing behavior Equivalent energy absorbed Equivalent transmitted load Equivalent intrusion level Exceptionally strong and formable for lighter cars 51

53 Making the product offer really global Across the world we offer the most advanced steels with: Simultaneous multi-regional development of new products Systematic comparison of the in-use properties of similar products (equivalency programme) Consistent mechanical properties resulting from many parameters defined throughout the production process Different coatings and surface treatments Hot stamping, AHSS, Deep Drawing steels, Electrical steels and much more 52

54 Automotive Europe product offer: Available online and as a smartphone app Coming soon: global auto catalogue and smartphone app! Browse our product catalogue on our website Or download the app on your smartphone/tablet Search the products: By range By application By standard By minimum tensile strength Available in 4 languages: EN, DE, FR, ES Click here for more info about this app 53

55 Contents 1. Who are we? ArcelorMittal Global Auto & Mobility Solutions 2. One face to the customer 3. Global R&D Products research Process research Steel solutions research 4. Our global footprint State-of-the-art plants close to our customers 5. Unmatched downstream integration ArcelorMittal Tailored Blanks ArcelorMittal Tubular Products ArcelorMittal Distribution Solutions (AMDS) and Steel Service Centres Stampers (associates) 6. Corporate responsibility & life cycle analysis 54

56 Process research Objectives Help plants to improve their key technical parameters (yield, quality, productivity) Help plants meet customer requirements at the lowest possible cost Key focus areas Efficient use of energy and raw materials while minimizing our environmental impact and improving our competitiveness Ensure continuous improvement in reliability and quality Provide models to optimize processing tradeoffs, increasingly through remote modelling Develop breakthrough processing concepts to maintain or achieve leadership in products Improving our technical parameters & meeting customer requirements at the lowest possible cost 55 55

57 Example Remote Monitoring Diagnostic and Standardization (RMDS) Blast Furnace & Auxiliaries Models April Process data & measurements (gas analysis, etc.) Burden distribution Thermal control Cohesive zone monitoring Hearth wear monitoring Tapping monitoring Stove state monitoring Stove operation control BF - Metallurgical Models Basic Models Burden Distribution - STROOI Overall Heat & Mass Balance - MMHF Hearth Wear - MOTHUS Auxiliaries Models Advanced Models Cohesive zone assessment - MOGADOR / ZAP Hearth Drainage - MOHDRAIN Hot stove ageing assessment - Diagnosis Hot stove operation optimization - SimStove Expert Operating Guidance System Expert System - SACHEM STROOI MMHF MOGADOR / ZAP MOTHUS MOHDRAIN Process Analysis & Support System Remote Monitoring, Diagnosis & Standardization - RMDS Diagnosis SimStove SACHEM STROOI MMHF MOGADOR / ZAP MOTHUS MOHDRAIN Possible integration of auxiliaries models in Expert Operating Guidance System and / or Process Analysis & Support System Real-time remote monitoring of blast-furnace parameters Integrated with key models and Expert Guidance systems Facilitates early detection of process problems Enables global process experts to collaborate in real time Identifies the most appropriate action at the right time Facilitates sharing of best practices Supports development of a universal knowledge-base Available Being developed Not yet available Available Being developed Not yet available 0 The right action at the right time 56 56

58 Contents 1. Who are we? ArcelorMittal Global Auto & Mobility Solutions 2. One face to the customer 3. Global R&D Products research Process research Steel solutions research 4. Our global footprint State-of-the-art plants close to our customers 5. Unmatched downstream integration ArcelorMittal Tailored Blanks ArcelorMittal Tubular Products ArcelorMittal Distribution Solutions (AMDS) and Steel Service Centres Stampers (associates) 6. Corporate responsibility & life cycle analysis 57

59 Steel solutions research Objectives Help our customers make the best possible use of our advanced product range Showcase practical examples of the most advanced products and present a complete solution to the market with higher added value Help to implement these products and solutions Advice on processing parameters, offer of technical services, 58

60 Supporting car makers mission and strategy Environmental Impact CO 2 & Weight reduction Recyclability Vehicle Performance Safety Durability Appearance Manufacturing Costs Process robustness & productivity Through strong partnerships, our teams address automotive challenges by developing efficient and innovative solutions 59

61 How much weight reduction can steel provide? The importance of geometry optimization in achieving maximum weight reduction: 2-G = Grade and Gauge optimization, typical of a carry over-constrained design 3-G = Geometry, Grade, and Gauge optimization, typical of a clean sheet design Final Design Confirmation Gauge T6 Optimization Phase 2 Report Design Confirmation T5 Source: WorldAutoSteel Detail Design T4 Sub-System 3G Optimization Phase1 Technology Assessment T3 Packaging Styling & aerodynamic T1 T2 Linear-Static Topology Optimization Non-Linear Dynamic Topology Optimization (LF3G) Future Steel Vehicle achieve a 29% Body-in-white reduction compared to a 2009 baseline, using 3-G geometry, grade, and gauge optimization with advanced steel grades that are commercially available today 60

62 Dedicated resident engineers bring technical support to customers around the world North America 14 resident engineers United Kingdom 1 resident engineer France 3 resident engineers Sweden 1 resident engineer Germany 5 resident engineers Czech Republic 1 resident engineer 6 EVI and processing support engineers to provide stamping and joining support Japan 3 resident engineers Spain 1 resident engineer Italy 1 resident engineer Republic of Korea 1 resident engineer Brazil 2 resident engineers India 1 resident engineer China 3 resident engineers We have built strong and deep relationships with our biggest customers and work with them in committed co-engineering programmes 61

63 Our vision and approach Non-stop R&D investment More than Steel Mastering steel: referential engineering material OUR VISION OUR WAY From collaboration to co-engineering Cutting-edge technology expertise Out-of-the-box design capacity R&D mission 62

64 Technical support at all stages of the vehicle life New vehicles Start of production 6 years years < 18 months Current vehicles Advanced projects Vehicle advanced engineering projects Vehicle industrialization projects Vehicle Production Advanced engineering Co-engineering EVI and processing support Quality management through through through through Product innovation Generic steel solutions Vehicle Design support Product promotion Approval Assistance to stamping & joining Reactivity to customer technical needs Pro-active optimization of product/process 63

65 Expertise at various applications Painting Crash Fatigue Corrosion Joining & laser welding Dent resistance Solutions engineering Stamping, forming Expertise at every step of the process 64

66 S-in motion suite of lightweight solutions The BIW weight reduction needed to achieve emission targets can be achieved with existing steel grades and solutions, with further potential from new grades ArcelorMittal generic steel solutions include BIW, closures and chassis parts S-in motion ICE C-Segment S-in motion Electric C-Segment S-in motion Plug-in Hybrid C-Segment S-in motion D-Segment EU market S-in motion Mid-size Sedan NA market S-in motion Mid-size SUV S-in motion Light Commercial S-in motion Pick-up Trucks S-in motion Truck Cabs -70kg (-18%) vs current ICE baseline -60kg (-15%) vs current ICE baseline -50 kg (-16%) vs current PHEV baseline -98 kg (-25%) vs BIW and closures current baseline -86 kg (-23%) vs current Mid-size sedan baseline -102 kg (-20%) vs current SUV baseline -45kg (-20%) About 140 parts upgraded -174 kg (-23%) vs current Pick-up baseline -54 kg (-17%) vs current cab baseline Twist beam Suspension Control arms Front subframes Pick-up frame NA rear subframe Front seat Up to 17% of mass-savings for C-segment vehicles -4 kg (-18%) using flat and long products Up to 26% of potential weight-savings Up to 15% of mass-savings on C-segment vehicles -55 kg (-23%) vs current Pick-up frame baseline From a steel provider, to a global solution provider -5.9 kg (-20%) vs current D-segment baseline -2 kg (-18%) vs current C-segment seat baseline

67 Example S-in motion solutions for Mid-size Sedan With press Hardenable Steels combined in Laser Welded Blanks Baseline 37.2 kg per side Solution Module weight: 24.4 kg per side Mass savings: 12.8 kg (34%) DP mm 0.9 mm LWB Usibor 1500 DP mm DP mm DP mm DP mm 1.0 mm 1.4 mm LWB Usibor 1500 CR340LA 0.9 mm DP mm DP mm DP mm DP mm Usibor mm Tensile strength values 1.3 mm 0.7 mm 1.2 mm 1.0 mm 1.6 mm 1.4 mm 0.9 mm 0.7 mm DP mm DP mm DP mm 1.3 mm 1.3 mm DP mm One piece LWB Usibor Ductibor 500 CR340LA 1.3 mm 26 kg per vehicle can be saved on the bodyside structure due to extensive use of AHSS, Press Hardenable Steels (PHS), MartINsite and Laser Welded Blank solutions 66

68 Global R&D - Automotive Applications Main mission Develop, promote & facilitate the use of new ArcelorMittal steels for automotive applications Activities Steel solution engineering Design optimization (crash, weight, cost, assembly, formability, stiffness, NVH, ) Facilitate customer manufacturing of our products: Forming Joining Tailored blanks Guidelines, tools, shop-floor best practices Simulation & experimental validation Technical support Contribution to process & product development Key R&D facilities Industrial size forming and welding equipments Finite Element Analysis (FEA) AM FE model

69 Co-engineering methodology BIW review Preliminary masssaving assessment Refined mass-saving analysis Forming & welding feasibility PHASE 1 PHASE 2 PHASE 3 Identification of potential mass saving solutions thanks to: Benchmark Steel grade properties Grade & Gauge optimization thanks to numerical simulations Crash Finite Element analysis Forming and assembly assessment Springback counter measures Hot-forming Temperature ( C) Roll-forming Spot-welding Engineered steel solutions Stiffness FE analysis Laser Welded Blanks

70 S-in motion : solutions for weight reduction Examples: S-in motion C-Segment Vehicle S-in motion Advanced Powertrain Vehicle S-in motion Pickup Truck S-in motion Light Commercial Vehicle S-in motion Battery Electric Vehicle S-in motion Plug in Hybrid Electric Vehicle (PHEV) S-in motion Laser Welded Blank Hot Stamped Door Ring S-in motion Ultra Lightweight Steel Door S-in motion Midsize Sedan S-in motion Midsize SUV S-in motion Electric Traction Machine S-in motion Front Seats S-in motion, ArcelorMittal s brand for automotive steel solutions 69

71 S-in motion C-Segment Vehicle A catalogue of steel solutions using: Advanced high strength steels Hot stamping Laser welded blanks Tubular products Long products Enabling for a C-Segment Vehicle: 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 CO 2 equivalent (eq) emissions during the vehicle s use-phase Automakers to achieve these savings at neutral cost without compromising the vehicle s safety performance S-in motion solutions are being implemented in production vehicles today Choosing the best weight saving, safety and cost compromises 70

72 S-in motion : Light BIW solutions for new powertrains S-in motion C-Segment vehicle S-in motion C-Segment vehicle Adapted to 2015 European crash requirements S-in motion Plug-in Hybrid Electric Vehicle Adaptation of S-in motion 2013 vehicle to plug-in hybrid powertrain Heavier powertrain: +190kg Less space in engine bay Safety requirements for battery Side impact Pole test Adapted to 2010 European crash requirements 255 kg BIW 7 kg lighter on BIW + closures despite tougher crash requirement thanks to Usibor 1500, MS1500, FF280DP and LWBs 265 kg BIW Only 10 kg heavier BIW despite 190 kg powertrain mass increase S-in motion is in motion 71

73 S-in motion Plug-in Hybrid Electric Vehicle Body-in-White solutions for electric vehicles Redesign body-in-white (BIW) to accommodate the larger powertrain and create the battery protection Possible through extensive use of AHSS for BIW (58% up from 35%) Achieved BIW weight reduction of 30 kg (11%) compared to the baseline vehicle Only 10kg weight increase vs S-in motion ICE lightest solution despite heavier powertrain and need of the battery pack additional protection ICE power train weight:~220kg EV power train weight:~367kg Main constraint: +147 kg (+66%) powertrain weight increase ArcelorMittal offers lightweight solutions for electric vehicles 72

74 Highlight: AHSS advantages for Plug-in Hybrid Electric Vehicles (PHEV) PHEV baseline BIW and CMS weight breakdown S-in motion PHEV BIW and CMS weight breakdown 35% AHSS & PHS Processes Hot stamping 6% Stamping of LWB 8 parts 57% AHSS & PHS Processes Hot stamping 31% Stamping of LWB 16 parts 319 kg 265 kg Tensile strength values 54 kg / 17% Weight savings Weight savings thanks to the intensive use of AHSS and PHS 73

75 S-in motion for Plug-in Hybrid Electric Vehicle (PHEV): Hot stamped parts In the PHEV BIW including crash management system, 23 parts (~81kg, 31%) are made with the following steels for hot stamping: Ductibor 500 Usibor 1500 High strength for complex geometries without spring back thanks to press hardening steels 74

76 S-in motion for PHEV: laser welded blank solutions 16 laser welded parts were selected for this lightweight solution: Cold stamping Hot stamping Laser welded blanks offer an effective way to reduce weight while maintaining performances 75

77 S-in motion Light Commercial Vehicle (LCV) 2010 LCV average CO 2 emissions 175g/km 2014 target 147g/km 2020 target Values for Europe New CO 2 legislation with penalties in Europe 76

78 S-in motion Light Commercial Vehicle Steel solutions for LCV at equal performance Baseline scope studied: 195kg 84% mild steel & HSS Lightweight solution mass: 158kg 82% VHSS & UHSS About 120 parts upgraded HSLA_360 3% HSLA_340 1% FB_590 9% HSLA_300 20% DP_590 6% Mild Steel 24% HSLA_280 33% IF_300 4% Mass saving 19% (37kg) neutral cost MS_ % DP_1180_HY 4% CP_ % Usibor USIBOR Mild Steel 6% 7% M_800 5% HSLA_280 5% DP_780 12% DUCTIBOR Ductibor 1% DP_590 9% FB_590 3% HSLA_300 6% Extensive use of VHSS and UHSS allows high weight savings 77

79 S-in motion Pickup Truck ArcelorMittal Solution 174 kg (23%) of weight savings compared to baseline weight (748 kg) Optimal solution embarks 63% Advanced High Strength Steels including 18% Press Hardened Steels Solutions are validated for crash and stiffness requirements Main complex parts are validated for forming and assembly Weight kg weight saving vs baseline kg Weight saving vs baseline Cab % Front doors % Rear doors % Box % Tailgate % Upper body total % Frame % Underbody total % Total scope % 22kg additional weight saving with emerging grades 78

80 S-in motion Ultra Lightweight Steel Door C-segment vehicle Baseline Front Door S-in motion S1 Lightweight steel door Short term Ultra lightweight steel door - Market ready Tensile strength values 18.3kg Weight breakdown 14.5kg Weight: 13.3 kg Weight savings: 4.9 kg / 27% Cost savings vs Alu: 30% 13.3kg Short term Steel grades 1. Door inner 12kg Medium term Laser welded blank AM05 0.8mm /0.6mm 2. Waist beam MS mm & DP Door beam Usibor Hinge reinforcements Usibor Outer panel FF280DP (490DP) 0.6mm Opening the door to more weight savings 79

81 Further weight reduction potential Due to a very aggressive and weight reduction driven product development, ArcelorMittal keeps enhancing: Our portfolio of products for cold stamping with developments like Fortiform, our family of 3 rd Generation AHSS Our portfolio of products for hot stamping with Usibor 2000 and Ductibor 1000 Further potential weight savings with new products (%) Potential Current Potential weight savings of additional 3% over the next 2 years across our solutions C Segment Pick up truck North America (2009 base) (2013 base) D segment (2015 base) New product developments to offer an additional 3% weight reduction in next 2 years 80

82 At the edge of innovation: icare : Steels for electrical mobility icare is ArcelorMittal s range of innovative electrical steels for the automotive market. Finding innovative (i) and environmentally friendly (e) solutions is essential for the CAR of tomorrow. These values form the core of the name icare. Our icare steels help automakers create environmentally friendly mobility solutions for a greener world. The icare portfolio comprises three distinct grades to meet the specific challenges presented by the shift to electric mobility solutions More information: automotive.arcelormittal.com/icare Electrical steel solutions for all types of electric vehicles 81

83 Recap icare : Steels for electrical mobility icare is ArcelorMittal s range of innovative electrical steels for the automotive market: Save: reduces energy losses Torque: for the highest levels of mechanical power output through high permeability Speed: high strength electrical steels for high speed rotors Large number of products in the icare range provide technical solutions for automakers: Lower CO2 emissions and better fuel consumption for hybrid vehicles Longer drive range Lower total cost of electrification Better power density of electric machines - reduces size and weight of electrical drive trains Plug-in Hybrid Volkswagen Golf Electrical steel solutions for all types of electric vehicles 82

84 Long Products Our knowledge of the specific requirements of each long product part led ArcelorMittal s Global R&D group to develop specific families of products including: Solam grades with bainitic or martensitic structures for hot and warm forming applications Freeform grades with improved toughness or hydrogen resistance for cold forming applications such as fasteners Usimax grades which offer improved machinability Coil spring solution with new corrosion resistant grade, leading to a 22% weight reduction and 10% better corrosion resistance (developed as part of our S-in motion study) Long Carbon Europe provides innovative solutions 83

85 Contents 1. Who are we? ArcelorMittal Global Auto & Mobility Solutions 2. One face to the customer 3. Global R&D Products research Process research Steel solutions research 4. Our global footprint State-of-the-art plants close to our customers 5. Unmatched downstream integration ArcelorMittal Tailored Blanks ArcelorMittal Tubular Products ArcelorMittal Distribution Solutions (AMDS) and Steel Service Centres Stampers (associates) 6. Corporate responsibility & life cycle analysis 84

86 85 Our global footprint that is second to none Please refer to the dedicated Auto Storybook chapter on the automotive intranet to find the latest version of our detailed ArcelorMittal automotive footprint slides.

87 Contents 1. Who are we? ArcelorMittal Global Auto & Mobility Solutions 2. One face to the customer 3. Global R&D Products research Process research Steel solutions research 4. Our global footprint State-of-the-art plants close to our customers 5. Unmatched downstream integration ArcelorMittal Tailored Blanks ArcelorMittal Tubular Products ArcelorMittal Distribution Solutions (AMDS) and Steel Service Centres Stampers (associates) 6. Corporate responsibility & life cycle analysis 86

88 Unmatched downstream network 87

89 What are laser welded blanks? Laser welded blanks are two or more flat steel sheets welded together by a laser. These sheets can: Have different thicknesses Be made of different alloys Have different coatings Using laser welded blanks, automotive engineers can design parts with the necessary properties where they are needed, optimizing weight and safety Laser Pressure 1 part: - 2 different thicknesses - 2 different alloys Laser welding Stamping Applying the necessary properties where they are needed 88

90 ArcelorMittal Tailored Blanks Strengths Weight saving (thanks to thickness optimization) Possibility to use different grades Nesting optimization for cost reduction Weld Thickness 2 mm Strong metal, e.g. Usibor 1500 Thickness 1 mm Soft metal, Ductibor 500 Blank A Engineering Scrap: 21.0% A A D Blank D Engineering Scrap: 17.1% B C Blank B Engineering Scrap: 14.0% Blank C Engineering Scrap: 15.2% The right steel grade and the right thickness in the right place 89

91 S-in motion Laser Welded Blank Hot Stamped Door Ring Usibor 1500 Usibor part instead of 4 One stamping tool One stamping operation No post assembly operations Usibor 1500 Ductibor 500 Check out the Honda Acura MDX case Lightweight concept Hot stamping steel grades Optimized thickness distribution Laser weld continuous links (no overlap) Hot-stamping geometry accuracy Materials, thicknesses and weldline positions can be tuned to pass the requirements Copyrights ArcelorMittal

92 S-in motion Laser Welded Blank Hot Stamped Door Ring: weight savings Current vehicles LWB Door Ring solution Usibor mm Usibor mm Usibor mm Usibor mm DP mm Baseline: 15.8* kg Door Ring Solution: 12.7* kg (-20%) *Including B-pillar hinge reinforcements, roof rail inner and side sill reinforcement box not represented on the picture This door ring has been implemented in a production vehicle see the Honda case study Copyright ArcelorMittal

93 Combining LWB and hot stamping for maximum weight saving B-pillar inner Seat cross member A-pillar B-pillar Rear side member Shotgun Front side member Front bumper beam Tunnel Door ring Front rail extension Ductibor Usibor Optimum balance between lightweight and strength thanks to Laser Welded Blanks 92

94 Combining LWB and hot stamping Key for maximum weight saving B-pillar Front side member Rear side member Tunnel Door Ring Front side member High mass savings (often >20%) thanks to Laser Welded Blank hot stamped solutions 93

95 ArcelorMittal developed a process for Usibor laser welding Before laser-welding, the Aluminium-Silicon coating near the edge is partially ablated by laser (ArcelorMittal process) The top layer is removed to avoid excessive Al dilution in the weld The intermetallic layer is intentionally kept to guarantee corrosion protection Intermetallic layer (~6µm) Laser coating ablation Laser welding Blank A ~ 2 mm mm Weld ~ 1 mm Blank B Remaining thin intermetallic layer AlSi Coating This process allows uniform hardness distribution after hot stamping, guaranteeing the weld quality VAMA Tech Day AMTB Door Ring Concept HV

96 Why are Tailored Blanks solutions a game-changer? Weight Performance Hot stamped laser weld blank technology benefits Cost Weight reduction Part consolidation Material cost reduction Improved part performance Limited impact to manufacturing process Hot stamped laser weld blank technology Competing technologies ArcelorMittal Tailored Blanks hot stamped laser weld blank technology balances all three competing needs 18/03/2014 VAMA Tech Day AMTB Door Ring Concept 95 95

97 ArcelorMittal Tailored Blanks footprint Existing Plants In project North America ArcelorMittal Tailored Blanks Concord, Ontario, Canada Woodstock, Ontario, Canada Detroit, Michigan, USA (project) Pioneer, Ohio, USA Murfeesboro, Tennessee, USA Silao, Guanajuato, México San Luis Potosí, S.L.P., México Delaco ArcelorMittal Tailored Blanks Tonawanda, NY, USA (JV) Dearborn, Michigan, USA (JV) Montezuma, Iowa, USA (JV) Europe Birmingham, UK Bremen, Germany Neuwied, Germany Liège, Belgium Genk, Belgium Gent, Belgium Lorraine, France Senica, Slovakia Zaragoza, Spain Orhangazi, Turkey (JV) China Shanghai Baosteel & Arcelor Tailor Metal (JV) Gonvvama Loudi (JV) Gonvvama Shanghai area (JV) Gonvvama Shenyang (JV) Gonvvama Chongqing (JV - SOP Q4-2017) India Arcelor Neel Tailored Blank Chennai (JV) Arcelor Neel Tailored Blank Pune (JV) Australia ArcelorMittal Tailored Blanks Adelaide Global footprint and expanding 96

98 Downstream network: Steel Service Centres NAFTA Gonvauto: Mexico Western Europe ArcelorMittal Distribution Solutions: Belgium Spain France UK Germany CLN: Italy Gonvarri: Germany Portugal Spain Magnetto: France Germany Italy North Africa Bamesa Tanger: Morocco Turkey & Eastern Europe ArcelorMittal Distribution Solutions: Poland ArcelorMittal / Gonvarri JV: Slovakia ArcelorMittal / Otel Bamesa JV: Romania Bamesa Çelik: Turkey Gonvarri: Poland Magnetto: Slovakia Magnetto: Poland Turkey Asia ArcelorMittal Distribution Solutions: China India South America ArcelorMittal Distribution Solutions: Brazil (AMG + AMM) Gonvarri: Argentina Ferrosider: Argentina Magnetto: Argentina Brazil South Africa Toyota Tsusho SA Processing SA Downstream solutions in service centres 97

99 Tubular products footprint NAFTA ArcelorMittal: Canada: Brampton, Hamilton, London, Woodstock USA: Marion, Plymouth Mexico: Monterrey Western Europe ArcelorMittal: France: Chevillon, Vitry le François, Hautmont Eastern Europe ArcelorMittal: Czech Republic: Jakl Karvina ArcelorMittal Tubular Products actively participates in customer prototyping and production programmes at the earliest stages of design. A full range of tubular steel products for the automotive industry 98

100 Contents 1. Who are we? ArcelorMittal Global Auto & Mobility Solutions 2. One face to the customer 3. Global R&D Products research Process research Steel solutions research 4. Our global footprint State-of-the-art plants close to our customers 5. Unmatched downstream integration ArcelorMittal Tailored Blanks ArcelorMittal Tubular Products ArcelorMittal Distribution Solutions (AMDS) and Steel Service Centres Stampers (associates) 6. Corporate responsibility & life cycle analysis 99

101 Corporate responsibility & life cycle analysis 100

102 Corporate responsibility: How we do what we do Our position in the industry brings unique opportunities and unique responsibilities. Our future success partly depends on the wider world giving us the freedom and flexibility to succeed. We will earn its trust to do so by behaving responsibly. Investing in our people We want to make each and every person working on our behalf feel valued. Making steel more sustainable We are using our expertise in steel to develop cleaner processes and greener products. Enriching our communities We play an important role in all the communities where we operate. all this is underpinned by transparent governance The corporate responsibility strategy is driven through four focus areas 101

103 Making steel more sustainable We develop products that support a lowcarbon world. Our Advanced and Ultra High Strength Steels (UHSS) contribute to reduce greenhouse gases by using lighter structures. We are committed to reduce CO 2 emissions per tonne of steel by 8% by 2020, using a 2007 baseline. We reuse over 30 million tonnes of scrap steel at our plants each year. This saves approximately 40 million tonnes of CO 2 annually. $329 million expenditure on environmental and energy capital expenditure in Using our expertise in steel to develop cleaner processes and greener products 102

104 Overall GHG emissions increase with competing materials Material production average greenhouse gas (GHG) emissions Life cycle greenhouse gas emissions per driven distance. Compact gasoline vehicle (5 l/100km) 155 Carbon fibre Magnesium (pigeon) Magnesium (electrolysis) Aluminium Steel / AHSS 0 Distance (km) 150, ,000 Reference AHSS Aluminium kg CO 2 eq/kg In the use phase auto manufacturers will meet their fuel economy targets with any of these materials. Therefore the use phase is equal for all materials because they will meet the fuel economy target. There is no real economic incentive for carmakers to go much further and put yourself at a cost disadvantage. Steel is the most recycled material on the planet, particularly from the auto industry. Full life cycle analysis favours steel over other materials. Awareness is increasing with carmakers and regulators

105 Life cycle analysis favours steel Please refer to the dedicated Auto Storybook chapter on the automotive intranet to know more about the benefits of steel looking at emissions during the three stages of a vehicle s life. Full life cycle analysis favours steel over other materials. Awareness is increasing with carmakers and regulators

106 Steel will remain the material of choice for cars ArcelorMittal s commercially available, advanced automotive steel grades provide sufficient body-in-white weight reduction potential to help get passenger cars and light trucks to fuel economy requirements These solutions cost much less than equivalent aluminium solutions They can be implemented within existing automotive manufacturing infrastructures, without the need for significant capital investment as is the case for aluminium and other materials The global capacity to produce these light weight steels is in place today The light weight steel solutions meet future fuel economy and tail pipe emissions requirements while providing a lower total life cycle carbon footprint than vehicles made with other light weight materials such as aluminium, magnesium, and carbon fiber Steel is the most affordable and sustainable material to save weight 105

107 106 What customers say Please refer to the dedicated Auto Storybook chapter on the automotive intranet to know more about what 16 of the biggest carmakers say about advanced steel solutions. Steel remain a material of choice

108 A glimpse of what you can find on ArcelorMittal s automotive website Click on the picture of each block to open the corresponding pages S-in motion Catalogue of lightweight solutions CO 2 emission reduction Ensuring safety performance The most affordable solution icare Electrifying: Innovative (i) and environmentally (e) friendly electrical steels for the CAR of tomorrow Tailored Blanks Combining: Several grades Various thicknesses Different coatings Ensuring: The right steel in the right place Videos Watch our automotive video episodes about: Our global footprint Meeting the technology challenges Innovation and R&D Customer cases 107