The Ultimate DWI Steel can. Cécile PIQUEMAL Key Account Manager ArcelorMittal

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1 The Ultimate DWI Steel can How beverage may inspire the aerosol market Cécile PIQUEMAL Key Account Manager ArcelorMittal

2 ArcelorMittal commitment to the Packaging industry International presence Worldwide leader for steel for packaging 1.4 million tonnes of steel for packaging produced in Europe Proximity to customers Commitment to offer innovative and sustainable solutions ArcelorMittal Europe Packaging Privileged partner of the steel packaging industry

3 ArcelorMittal commitment to the Packaging industry Strong R&D expertise Co-development, innovation, eco-conception, world-class level in finite element simulation (FEM) Suppliers of solutions Proximity, wider product offer, short logistical chain, flexibility and quality Industry vision Engaged to preserve steel position at EU level for its proven benefits to a circular economy

4 ArcelorMittal commitment to the Packaging industry Extended product offer A long history of expertise in all segments... Wide thickness range from 0.10 to 0.49 mm Tailor-made steel ranges Extensive offer of finishes and surfaces BEVERAGE CANS FOOD CANS AEROSOLS GENERAL LINE with various steel applications for aerosols

5 BEVERAGE AEROSOLS 1. Similar market trends 2. Performance and economics driving innovation 3. Leading edge technology for monobloc, 2-piece and 3-piece cans 4. Model material for circular economy

6 1. Similar market trends Attractive markets with solid steady growth, even though market sizes are significantly different EU Markets Aerosols Beverage cans Metal units 5.7 Bn 64 Bn CAGR % +2% Common customers needs & consumption trends Increasing need for shape and format differentiation Decoration and shelf attractiveness Safety and environmental compliance Both have been facing a fierce competition with aluminum, especially on the small sizes And plastic also as an alternative to metals EU Market shares Steel Aluminium Beverage cans 20% 80% Aerosols 50% 50% Artistic aerosol with debossing features and special print effects by Carolina Herrera, produced by Ardagh. Source: MPE Artistic beverage can embedded with diamonds by the British stylist Zandra Rhodes. Source: MPE Source: FEA, BCME

7 2. Performance and economics driving innovation Steel beverage cans are getting thinner and lighter

8 2. Performance and economics driving innovation Further light weighting is still possible, strength and resilience are the key properties of steel to achieve our ambitious targets while maintaining can integrity Many of these possibilities are out of the aluminum scope Significant hardening possibilities still unused Many solutions to preserve its ductility Production capabilities with gauges < 0.20 mm Abilities to resist to severe forming conditions, maximum deep draw ratio, maximum ironing rate The higher the ductility, the broader the can making opportunities

9 3. Leading edge technology for monobloc, 2-piece and 3-piece aerosols Breakthrough solutions for 1 and 2-piece cans for aesthetics solutions and smaller sizes Monobloc aspect with no weld or invisible seam Ultimate initial gauge at 0.35 mm / midwall at 130µ -50µ or -30% thickness reduction target Continuous improvement of 3-piece aerosols for all formats and industrial applications New market benchmark with body gauge at 0.13 mm -50µ or -25% thickness reduction target Ultimate Typical 15bar Thickness market average, mm Ultimate Typical Top and bottom parts will follow same downgauging proportions: Top: from mm today to a probable mm short term Bottom: from mm today to a probable mm short term DS Container 2p polymer-coated steel aerosol can produced in the US with technology by Daiwa Can, Japan Ball G3HD - Newest 2p aerosol can, produced in NA Ardagh Group - World s lightest 3p steel aerosol for a range of Henkel s hairspray products, achieving a wall thickness of only 0.13 mm for its 250 ml aerosol can and allowing for a remarkable 15% saving in materials and water

10 4. Model material for the circular economy Steel is the recycling champion 77.5% Recycling rate EU #1 recycled packaging material EU recycling rates of packaging materials, % Recyclable without downgrading the material, scrap is a valuable resource * Easy and economical to recover thanks to magnetic properties Recycling steel saves resources, energy & emissions every time Sources: APEAL 2015, ACE, eaa, FEVE 2014, Eurostat * 2013 rate, latest available figure 10

11 4. Model material for the circular economy ArcelorMittal outperforms worldwide industry average in GWP GWP (kg CO 2 -eq/kg tinplate) ArcelorMittal aiming for - 10% CO 2 -eq cradle-to-gate - 27% CO 2 -eq emissions for cradle-to-recycling Medium term improvements thanks to: light weighting continuous process improvement Long term improvement thanks to: breakthrough technologies bypassing raw materials preparation Recycling rates: 77.6% 82% 90% Light weighting rate: 15%

12 4. Model material for the circular economy 330 ml beverage container comparison - Cradle-to-grave ArcelorMittal steel beverage cans best-in-class vs alternative materials in GWP with EoL GWP (g CO 2 -eq/container) Increasing recycling rate and further light weighting will improve ArcelorMittal s performance Valorisation: 82% RR 71.3% RR Sources & methodology Material production: ArcelorMittal data (steel), European Aluminium Association, BEE Eco Emballages (glass, PET) Container making, transport: calculation based on BCME report (steel & alu), BEE Eco Emballages (PET & glass) Transport base of 300km. Filling: calculation based on data from beer industry in BCME report EoL: Worldsteel methodology * 70% Incineration 75% RR Aluminium Electrolysis in primary route uses mostly fossil energies Lower energy consumption in secondary route PET * N.B.: best practice scenario with systematic energy recuperation (heat & vapour) Chemical manufacturing process EoL>0 due to CO 2 emitted during incineration Glass bottle Natural gas or heating oil used to melt cullet and raw materials Higher impact of transport due to weight

13 4. Model material for the circular economy 330 ml beverage container comparison - Cradle-to-grave Continuous GWP improvement End of life recycling & light weighting positively impact results ArcelorMittal beverage can forecasted at 61g Co2 eq/container, lowering by 19% the GWP impact Without breakthrough technologies impact, individual contribution below Recycling impact on GWP (g CO 2 -eq/container) Light weighting impact on GWP (g CO 2 -eq/container) N.B.: Forecast scenario without light weighting N.B.: At 82% constant recycling rate for ArcelorMittal data, EU average at 77.6% recycling rate. Above KPIs include coil production (ArcelorMittal data), can making, filling and transportation (BCME report) and EoL (Worldsteel methodology).

14 Steel packaging strengths Permanent material and a real closed material loop Local, every steel plant is a recycling plant The recycling champion Light weighting & eco-design Highest product protection & long shelf life Outstanding efficiency through the supply chain Branding and differentiation

15 Thank you for your attention