Umicore Sa · EURONEXT:UMI
Umicore Sa — Investor Day (May 2012)
48 slides from Umicore Sa's investor day presentation, May 23, 2012
Slide 1: Key developments in Automotive Catalysts
Key developments in Automotive Catalysts Capital Markets Event Seoul, 23 May 2012
Slide 2: What is an automotive catalyst?
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 Toxic pollutants Non-
Slide 3: Umicore Automotive Catalysts business drivers
Umicore Automotive Catalysts 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
Slide 4: Global light duty vehicle production outlook
Global light duty vehicle production outlook Established Markets Car production Emerging Markets Car production [M vehicles] [M vehicles] 60 60 50 50 40 40 30 30 20 20 10 10 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2000 2001 2002 2003 20
Slide 5: Global powertrain development
Global powertrain development Internal Combustion Engine (ICE) remains dominant Car production [M vehicles] 120 100 80 60 Contains combustion engine Requires catalyst system 40 20 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 EV (Electric Vehicle) PHEV (Plug-in Hybrid Electric Vehicle) HEV (Hybrid
Slide 6: Global emission legislation present in most regions and becoming more stringent
Global emission legislation present in most regions and becoming more stringent EU regulation EU inspired regulation US regulation Japanese regulation No legislation 6
Slide 7: Umicore's global leadership position
Umicore’s global leadership position Russia Europe North Korea America China Japan India Regional positions South Market leader America Australia (#1 or #2 position) Smaller player (distant #3) Circles indicative of 2011 light duty vehicle production volumes (≠ catalyst revenues) 7
Slide 8: Umicore's global footprint in automotive catalysts
Umicore’s global footprint in automotive catalysts Production plant R&D / Technology development centre Burlington Ansan Canada Korea Auburn Hills Onsan USA Korea Tulsa Himeji USA Japan Americana Suzhou Brazil China Production plant R&D / Technology development centre Production plant & R&D / Techno
Slide 9: Impact of CO2 regulation
Impact of CO2 regulation
Slide 10: Challenging CO2 emission targets will push advanced engine configurations
Challenging CO2 emission targets will push the use of advanced engine configurations CO2 emission targets for light duty vehicles [g/km] actual Advanced engine configurations enacted • Down-sized turbo-charged proposed gasoline engines 240 estimated -37% • Gasoline direct injection 181 185 -22% 167
Slide 11: Downsized turbo-charged direct injection gasoline engines
Downsized turbo-charged direct injection gasoline engines are being implemented more widely Turbo-charged Direct Injection (DI) engines enable reduced fuel consumption • By reduced engine displacement and decreased engine speed • By flexible combustion process • By significant torque increase, esp.
Slide 12: Lean combustion provides the best fuel economy
Lean combustion provides the best fuel economy Operating range TWC TWC Lean burning Lean burning conditions offer better conversion combustion properties CO NOx HC • Principle already used in diesel cars No oxygen Excess of oxygen • Introduced in lean burning gasoline engines Rich exhaust Lean exhau
Slide 13: Electrification of the powertrain impacts catalyst size and complexity
Electrification of the powertrain impacts catalyst size and catalyst complexity ELECTRIFICATION ICE HEV PHEV EV Parallel Range Normal Start-stop Mild Full BEV FCEV system extender Relative size +++ +++ +++ ++ ++ + No emission control catalyst Relative complexity + + + ++ +++ + 13
Slide 14: Hybrid powertrains require new operational conditions
Hybrid powertrains require new operational conditions for the ICE and the catalyst Engine-stop phases causes significant cooling of the emission control system • Lower catalyst light-off temperature required • High temperature stability especially required for gasoline applications Engine restarts c
Slide 15: Market status in Europe
Market status in Europe
Slide 16: Moderate growth of light duty vehicle production expected in Europe
Moderate growth of light duty vehicle production expected in Europe Production in 2014 expected to reach record 2008 level Car production [M vehicles] CO2 targets drive fuel efficiency 25 20 • 130g/km, phasing in in 2012, full compliance by 2015 15 • 95 g/km further reduction by 2020 10 • Engine con
Slide 17: Strengthening EURO 6 NOx limits for diesel cars
Strengthening EURO 6 NOx limits for diesel cars require NOx aftertreatment systems NOx EURO 3 EURO 4 EURO 5 EURO 6 0.5 g/km -84% 0.25 g/km 0.18 g/km 0.08 g/km 2000 2005 2010 2015 17
Slide 18: Diesel NOx aftertreatment system concepts
Diesel NOx aftertreatment system concepts 2014 EURO 5 EURO 6 H 2S NSC cDPF slip Replacement of DOC by NOx storage catalyst (NSC) and addition of Sulphur slip catalyst DOC cDPF Diesel oxidation catalyst (DOC) Urea with catalysed Diesel DOC cDPF SCR SCR Particulate Filter (cDPF) Addition of Urea-based
Slide 19: Strengthening EURO PM limits may require gasoline particulate filters
Strengthening EURO 6 PM limits may require gasoline particulate filters EURO 6 legislations addresses the number Gasoline Direct Injection (DI) engines have of particulates, with a transition period of higher Particulate Matter (PM) emissions 3 years for gasoline engines (in number of particles) com
Slide 20: Potential Gasoline particulate reduction system concepts
Potential Gasoline particulate reduction system concepts 2017 EURO 5 / EURO 6 EURO 6c TWC cGPF Combination of TWC and cGPF TWC Three Way Catalyst (TWC) cGPF All-in-one catalysed Gasoline Particulate Filter 20
Slide 21: Umicore's market position in Europe
Umicore’s market position in Europe European catalyst market should continue to outpace vehicle production due to the introduction of new legislation Umicore has a strong leadership position in the European market Karlskoga plant, Sweden • Catalyst production in Europe started in 1974 Umicore has st
Slide 22: Market status in North America
Market status in North America
Slide 23: Moderate growth of light duty vehicle production expected in North America
Moderate growth of light duty vehicle production expected in North America Production in 2016 expected to reach record 2000 level Car production [M vehicles] Corporate Average Fuel Economy (CAFE) regulation 20 • 35.5mpg (miles per gallon) to be reached by 2016 (now 23.1 – 27.5) 15 • From 2017 to 202
Slide 24: Gradual implementation of LEV III (SULEV20) emission standards
Gradual implementation of LEV III (SULEV20) emission standards to be reflected in vehicle fleet Emission categories Sales share to be reached to meet emission norms 100% NMOG*+NOx [mg/mile] 160 Sales share 125 -88% 70 50 30 20 0% SULEV SULEV20 LEV ULEV70 ULEV50 ULEV 2010 2010 2020 * NMOG: Non-Methan
Slide 25: Various emission categories require more advanced catalyst technologies
Various emission categories require more and more advanced catalyst technologies •System requirements • Low light-off ULEV TWC TWC • On-board diagnostics • Increased Hydro Carbon (NMOG) SULEV TWC TWC TWC performance • Robustness over lifetime • Combined NMOG/NOx performance SULEV20 TWC TWC TWC • Str
Slide 26: Umicore's market position in North America
Umicore’s market position in North America LEVIII and EPA Tier III pending legislation offers catalyst growth opportunities Umicore has a leadership position in the North American market Burlington plant, Canada • Catalyst production in North America started in 1983 • Acquisition of Delphi catalysts
Slide 27: Market status in Japan / Korea
Market status in Japan / Korea
Slide 28: Moderate growth of domestic light duty vehicle market in Japan and Korea
Moderate growth of domestic light duty vehicle market expected in Japan and Korea Korean and Japanese OEMs strongly positioned worldwide Car production • Japanese OEMs have strong growth path globally and especially South 14 [M vehicles] East Asia 12 • Strong position of Hyundai/Kia in Korea with gl
Slide 29: Umicore's market position in Japan and Korea
Umicore’s market position in Japan and Korea Korean and Japanese OEMs driven by growing export markets Umicore has a leadership position in Korea • Catalyst production started in 1987 Onsan plant, Korea Distant follower in Japan • Catalyst production started in 1993 • Core strategy to increase posit
Slide 30: Market status in China
Market status in China
Slide 31: Continued strong growth of light duty vehicle production expected in China
Continued strong growth of light duty vehicle production expected in China Car production [M vehicles] Continued strong growth of vehicle production 35 30 expected 25 20 15 Powertrain development mainly focused on 10 conventional gasoline engines 5 0 2011 2015 2019 Diesel gaining momentum XEV ICE fl
Slide 32: Chinese emission legislation closely following European standards
Chinese emission legislation closely following European standards 2000 2005 2010 2015 2020 Europe Euro 3 Euro 4 Euro 5 Euro 6 China C3 C4 C5 C5+ Beijing gasoline C3 C4 C5 C5+ Countrywide China C3 C4 C5 Beijing diesel C3 C4 Countrywide 32
Slide 33: Umicore's market position in China
Umicore’s market position in China Umicore has a leadership position in China Local production capacity since 2005 Suzhou plant, China Platform exposure with both global and domestic OEMs New production line for LDV and HDD being built in Suzhou (commissioning in Q3 2012) Suzhou tech centre, China T
Slide 34: Market status in South America
Market status in South America
Slide 35: South American market drivers
South American market drivers South American market for light-duty vehicles is growing Car production • Constant growth since early 2000 8 [M vehicles] • Forecasts show local manufacturing of 6 6 million vehicles by 2017 (IHS) 4 Strongest market is Brazil 2 • Brazil emission legislation with upcomin
Slide 36: Umicore's market position in South America
Umicore’s market position in South America Umicore has a strong leadership position in the market • Pioneer for Catalyst production in South America, started in 1991 • Launching of Vehicle Emission Tech Centre in 1992 Americana plant, China Umicore has strong technology portfolio for bio-fuels and c
Slide 37: Market status in India, Russia and South-East Asia
Market status in India, Russia and South-East Asia
Slide 38: Markets in Russia, India and South-East Asia
Markets in Russia, India and South-East Asia Car production growing with economic development of these countries Legislation currently at low level • Following European legislation with 5-7 year delay • Very low durability requirements • No in-use control Umicore ready to invest when markets develop
Slide 39: On- and non-road HDD market
On- and non-road HDD market
Slide 40: Expansion of scope of emission norms
Expansion of scope of emission norms 1985 2006 2011/2012 2016 40
Slide 41: More stringent legislation enforces use of emission control systems worldwide
More stringent legislation enforces the use of emission control systems worldwide USA/Canada Korea On-road 2017 On-road 2015 US HDD fuel economy EURO VI Non-road 2014-2015 Non-road 2013 Tier 4 final Tier 4 Brazil Japan On-road 2012 On-road 2014 EURO V Post JP 2009 Non-road 2015-2017 Stage IIA China
Slide 42: HDD Global Technology Trends
HDD Global Technology Trends Advanced legislation require PM and NOx aftertreatment 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 US 2007 US 2010 USA Canada DOC cDPF DOC cDPF SCR EURO IV/V EURO VI Europe DOC cDPF or SCR DOC cDPF SCR JP 2005 Post JP 2009 Japan DOC DOC cDPF SCR India EURO IV/
Slide 43: Umicore's market position in Heavy Duty Diesel
Umicore’s market position in Heavy Duty Diesel Umicore’s position in on- and non-road HDD • Decided in 2005 to step in HDD market and started R&D efforts • Technology gap with competitors closed by 2008-2009 followed by market positioning • Contract wins in all regions with relatively more success i
Slide 44: Conclusion
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Slide 45: Umicore Automotive Catalysts
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 • Strongly positioned in
Slide 46: Forward-looking statements
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
Slide 47: The presenter
The presenter Dipl.-Ing. Wilfried Mueller Global Technology Director, Research & Technology Umicore AG & Co. KG Wilfried Müller started at the Applied Technology Group Automotive Catalysts of Degussa AG in 1990. He became the Head of the Global DaimlerChrysler Businessteam at Degussa/Umicore AG in 1
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