Aluminium response to automotive OEMs challenges

Constellium’s automotive strategy

and response to the market

opportunities and challenges

Dr Carsten Rink, Technical Director Automotive

Würzburg, March 14, 2016

Agenda

1. Constellium

2. Developing the right products

3. Our innovation strategy and capabilities

4. Following the automotive growth

5. Sustainability opportunities

214.03.2016Lightweight Design Summit, March 14-15, 2016

Agenda

1. Constellium






Constellium is a leader in innovative

aluminum-based solutions2014 pro forma figures including Wise Metals acquisition

* The combined unaudited pro forma revenue information for the year ended December 31st, 2014 presented gives effect to the acquisition of Wise as if it had occurred on January 1st, 2014.

This information is presented for information purposes only and does not purport to represent what Constellium actual revenues would have been had the acquisition occurred on the date indicated,

nor is it necessarily indicative of future results.

Over 10,000 employees*

€4.7 billion in sales

(incl. €997 million from Wise Metals)*

21 manufacturing sites

C-TEC, our world-class Technology Center

Headquartered in Amsterdam, The Netherlands.

Corporate offices in Paris, France, Zurich, Switzerland and New

York, USA


Constellium: a long and rich experience in aluminum

1855Pechiney

1888Alusuisse

1902Alcan

2000Alcan Aluminum Limited

merges with Algroup/

Alusuisse

2003Alcan Inc. acquires

Pechiney

2007Rio Tinto

acquires Alcan

More than a century of growth

May 2013Constellium commences

trading on the New York

Stock Exchange and NYSE

Euronext Paris

May 2011Alcan Engineered

Products is renamed

to Constellium

January 2011Rio Tinto sells 51%

of Alcan Engineered

Products to Apollo,

10% to FSI and keeps

the remaining 39% stake

January 2015Constellium acquires

Wise Metals


http://upload.wikimedia.org/wikipedia/fr/b/b3/Alusuisse_logo.svg

http://upload.wikimedia.org/wikipedia/fr/b/b3/Alusuisse_logo.svg

Structured into 3 Business Units

Aerospace and Transportation € 1,197 billion in revenues

#1 worldwide for aerospace plates

#1 in the USA for large coils

Packaging and Automotive Rolled Products € 2,573* billion in revenues

A Major player in automotive body sheet

#1 worldwide in closure stock

#2 in Europe for can body stock and #2 in North America

Automotive Structures and Industry € 921 million in revenues

#2 worldwide in crash management systems

#1 in Europe for large profiles

#1 in Europe for hard alloy extrusions

* The combined unaudited pro forma revenue information for the year ended December 31st, 2014 presented above gives effect to the acquisition of Wise as if it had occurred on January 1st, 2014.

This information is presented for information purposes only and does not purport to represent what Constellium actual revenues would have been had the acquisition occurred on the date indicated,

nor is it necessarily indicative of future results.


An introduction to Constellium 2015 7

Aerospace

Automotive

Packaging

Our customers: market leaders in their industries

Lightweight Design Summit, March 14-15, 2016

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Agenda

1. Constellium






Overview of our lightweighting solutions

BODY SHEETS & COILS

for

Closures skin

for

Body-in-White

EXTRUSIONS & COMPONENTS

Body-in-White

Crash Management

System (CMS)

Chassis

914.03.2016

for

Closures inner


Constellium – key supplier for premium as well as

volume oriented OEM in body sheet

Lightweight Design Summit, March 14-15, 2016 14.03.2016 10

Audi

BMW

Chrysler

Citroën

Mercedes Benz

Opel

Peugeot

Porsche

Renault

Tesla

Mercedes-Benz

A-Class

Audi

A3

Audi

A8

Peugeot

308

Citroen

C4

Mercedes-Benz

B-Class

Audi

A7

BMW

7 series

Peugeot

3008

Citroen

DS4

Mercedes-Benz

C-Class

Mercedes-Benz

SL-Class

Porsche

Cayman

Tesla

Model S

Opel

Zafira

PROUD

TO SUPPLY

Our automotive body sheet portfolio: key product and

process performance

14.03.2016 11

PRODUCT PERFORMANCE

Crash Stiffness

Strength/Mech.

Resistance

Surface

Aspect

Joining

& Welding

DOWNSTREAM PROCESS PERFORMANCE

Adapted forming

technologies

Design & Style


Our automotive body sheet portfolio with increasing

performance

14.03.2016 12

Strength/Mech.

Resistance Crash Design & Style

Surface

Aspect Stiffness

PRODUCT PERFORMANCE

Strongalex®

Ultralex®

For replacement of high

strength steel parts

and further down gauging

Formalex ® PLUS

For parts with

complex design

Securalex ®

Securalex ®HS

For parts which

need energy

absorption

Surfalex ®

Surfalex® HS

For all

visible parts


The challenge

Offer further lightweighting vs. the best steel offer (ultra high- strength

steel)

Constellium new Ultralex® provides approx. 17% weight savings vs. UHSS

Ultralex® offers inter-granular, filiform and stress corrosion resistance, best-

in-class among the 7xxx family

Ultralex® is formable using press hot forming & warm forming, and joinable

using adapted mechanical fasteners

Press-quenched B-pillar reinforcement prototype part (C-TEC internal)

13

A new ultra high-strength aluminum: Ultralex®


Ultralex® strength properties depend on the final temper

Lightweighting potential and enabling technique are investigated within

Constellium and with forming and joining partners

Ultralex®: performance and enabling technique

14

YS @T7 YS @T6 Rm @T6 A80 @T6

Ultralex® 450 MPa 500 MPa 550 MPa 15% Industrial trials

Ultralex®

Warm or hot forming

Corrosion protection needed

Mechanical fastening

17% lighter

Ultra high-strength steel

Hot forming

Corrosion protection needed

Welding & mechanical fastening

…

Side impact beam

productYS (MPa) UTS (MPa) A80 (%)

Gauge for iso crash

performance

% lightweighting

vs. UHSS

UHSS (e.g. 22MnB5) 1100 1500 6 1,2 -

Ultralex® 500 550 15 2,9 -17%


New developments to improve OEM process

performance

15

DOWNSTREAM PROCESS PERFORMANCE

Improved welding

cycle timeImproved forming

process

Remote Laser weldable alloy

Remote laser welding for

joining complex part with

a single alloy solution.

New highly formable skin

High quality skin alloy with

improved formability

performance


Automotive Structures Product Portfolio focused on

three categories of components

Crash Management

Systems

Side Impact Beams

and other safety

systems

Body-in-White

Structural Parts


Constellium – key supplier for premium as well as

volume oriented OEM in Extrusion based components

14.03.2016 17

Audi

BMW

Citroën

Ford

Jaguar

Jeep

Mercedes-Benz

Opel

Peugeot

Porsche

PROUD

TO SUPPLY

Mercedes-Benz

A-Class

Audi

A8

Peugeot

308

Mercedes-Benz

C-Class

Audi

A6

Audi

Q3

Audi

Q7

BMW

1 Series

BMW

X5

Ford

F-150

Mercedes-Benz

E-Class

Mercedes-Benz

S-Class

Mercedes-Benz

Actros

Jaguar

F-Type

Jeep

Cherokee

Mini

Clubman

Porsche

911


Our Crash Management System (CMS) portfolio

evolves to respond to the needs of OEMs

14.03.2016 18

Industrialization

Manufacturing processes:

extrusion, bending,

forming, welding,

bonding …

Scale Up – Prototypes,

process optimization

& qualification testing

Brunel University:

Constellium and

JLR Partnership

Rapid prototyping

route – Alloy/Process

Collaborative

partnerships with

Tier 1 & OEM’s

Develop downstream

fabrication & joining

technologies

Unmatched

alloy portfolio

Str

ength

UT

S (

Mpa)

Alloy composition/

process optimization

350

7,003

7,108

Ultimate 6xxx

Strength capability?

New High Strength

6xxx Alloys – HSA6

Shape Complexity/

Strength Compromise

Conventional High Strength

6xxx Alloys

400

450

500

Design and next

generation CMS

CMS System

Active CMS

Semi active/100% active

Crashbox System

Crashbox innovation

Low & Highspeed

CMS Beam

With integrated pedestrian

protection system (SMIF)

Beam System

Springback beam

(pedestrian optimized

2nd loadpath beam)

Pedestrian System

Pedestrian protection

honeycomb


Agenda

1. Constellium






An aluminium solution for every part

Automotive body structures are today made out of a range of steel grades

In Constellium, our long-term ambition is to offer aluminium solutions to

convert all steel grades, maintaining both an attractive weight reduction

as well as a reasonable overall cost

Volvo XC90 2015 body structure


C-TEC: a world-class technology center fully dedicated

to innovation

Uniquerapid prototyping

capabilities, simulation tools

and advanced joining

technologies such as

friction stir welding

Over150 patent families and trademarks

22Nationalities

223Employees

58PhDs

93Engineers

including


For automotive body sheet, development of alloys and

solutions

Pushing the limits

of aluminium

Ultra High Strength

Ultra High Formability

More Crash properties

Higher Stiffness

Metallurgy, corrosion,

Surface treatment

Expertise

Providing

solutions

For better integration

with other materials

For better manufacturing

efficiency of OEMs

Joining, Welding

Studies

Customizing

our offer From simulation studies

in design phase

To specific alloy &

conversion developments

Characterization, Simulation,

Prototyping, Design, CAD Tools


Our technical development offer

R&T Center “C-TEC”

Prototyping & testing

Alloy development

Laboratory casting at all scales

Hot and cold rolling

Heat treatment and quenching

Surface treatment & lubrication

From beaker-scale to continuous

pilot line

Analysis and characterization

Fully range of corrosion

and durability tests

State-of-the-art electron microscopy

and surface characterization

Strong chemical analysis capability

Design, forming

& simulation

Design & forming feasibility simulation

Support for alloy choice

Specific design studies for OEMs

FEM modeling

Formability & mechanical testing

Full scale hydraulic stamping press

State-of-the-art mechanical

and formability laboratories

Joining and welding

Adhesive bonding

and durability testing

Riveting and other

mechanical fastening

All relevant welding

technologies

Network of international

collaborations


Virtual design and simulation

CMS design:

requirements, objectives, innovation strategy

Component crash & correlation

Full vehicle crash & correlation

Mit freundlicher Genehmigung: BMW AG

CMS System

Active-CMS

Semi Active/100% Active Systems

Crashbox System

Crashbox Innovation

Low & Highspeed

Beam System

Springback Beam (Pedestrian

optimized 2nd Loadpath Beam)

CMS Beam

With Integrated Pedestrian

Protection System (SMIF)

Pedestrian System

Pedestrian Protection Honeycomb

NEW DEVELOPMENTS


Automotive extrusion-based components:

alloy & process development

Re-thinking extrusion alloy design and manufacturing process

Define targets, (strength, crush, corrosion

resistance, etc.), alloy design and process

conditions

Undertake rapid prototyping experiments

– cast, extrude and test a full range

of potential alloys

Analyse data and select only

the few best candidates

Scale up – prototypes, process

optimization & qualification testing

Technology/knowledge transfer

to the extrusion plants

In house

research

centre (c-tec)

& integrated

r&d network

36

6M

Pa

Advanced Die Design Models –

shape, microstructure & extrudability

Lab scale DC

caster & 5MN

press

Full scale DC

casting centre

with MC & 6”

fully integrat-

ed extrusion

press line &

ageing oven*

* Government funding secured in partnership with JLR to establish a Constellium University Technology Centre at Brunel University


Agenda

1. Constellium






We believe aluminium has an

unrivaled “benefit/cost” position

5-fold Increase in global

Body-in-White market expected

Sheet based aluminium solutions are growing strongly

400230

490

200

2020

2,100

700*

1,200

2015

92030

2012

315

70 15

~5×

Europe +15%

US +43%

Asia +38%

CAGR ’12 – ’20

Global FRP Al-BiW market forecast act. 2012 – 2020 (kt)

* Outlook excluding any major shift for a new high volume model

Source: Constellium internal analysis

2714.03.2016

2012 2015 2020


Constellium automotive rolled product footprint

Second largest-volume, fully

integrated rolling mill in Europe

World-class recycling center

Integrated hot/cold-rolling line

NEUF-BRISACH, F SINGEN, D

Joint Venture with UACJ (Japan),

majority owned by Constellium

Bowling Green, KY (under construction)

To respond to this challenge, we are expanding the

rolled products capacity

14.03.2016 28Lightweight Design Summit, March 14-15, 2016

Some pictures of our investments in progress

2914.03.2016

Neuf-Brisach (F)Neuf-Brisach (F)

Singen (D) Bowling Green (USA)


2942

72

115

14

32

45

125

0

50

100

150

200

250

300

2012 2015 2020 2025

Extrusion based solutions show impressive growth as

well

Aluminium Body

Structure market (kt)

Aluminium CMS

market (M units)

Plants on 3 continents to capture

global growth: Europe, U.S. and

China

Europe North America China

8,011,0

14,5

3,0

6,0

7,5

2,0

3,5

5,0

0

5

10

15

20

25

30

2012 2015 2020

CAGR +14%

CAGR +8%

Source: Automotive Structures CMS Data base (2014)


Automotive Structures also

14.03.2016 31

Constellium automotive structures footprint

Production

of extrusions

for automotive

structures and

crash manage-

ment systems

Design and development

of automotive structures and crash

management systems, including

production processes, prototyping

and testing

Production of automotive structures

and crash management systems

Dahenfeld, D Gottmadingen, D

Design and development of auto-

motive structures and crash manage-

ment systems, including production

processes, prototyping and testing

Production of automotive structures

and crash management systems

Production of automotive

structures and crash

management systems

(start of production in 2017)

Van Buren, MIWhite, GA

Production of

integrated crash

management systems

Changchun, China


Agenda

1. Constellium






Constellium is committed to sustainability

1 sustainability charter, 4 pillars,

9 commitments, 12 targets

1 materiality assessment process involving

external and internal stakeholders to guide

our sustainability approach

2 full Life Cycle Assessments(LCAs)

demonstrating significant advantages related

to the use of aluminium and our products for

car hoodsand beverage cans

Development of aluminium products

with environmental benefits

Member of the Aluminium

Stewardship Initiative (ASI)

Multistakeholder process

First voluntary standard for aluminium

sustainably produced and used


At Constellium, we strive to make

infinite aluminum recycling a reality

Committed to maximize recycling of

all scraps, from process scrap to end-of-life

Focus on increasing end-of-life recycling

and on designing new products with this

perspective

Engaged in industry initiatives to increase

end-of-life recycling and to improve the

measurement and the quality of end

of life scrap

Our recycling partnerships


THANK YOU FOR YOUR

ATTENTION!

Aluminium response to automotive OEMs challenges

Automotive

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