Hybrid Steel. A new breed of steel that meets the engineering challenges of tomorrow.

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1 Hybrid Steel A new breed of steel that meets the engineering challenges of tomorrow.

2 Our vision: Innovative steel for a better engineered future

3 What if you could get the properties of re-melted steel, in large quantities to a cost effective price?

4 What if you could reduce production steps by up to 50%?

5 What if there was a steel that challenged established ideas of what engineering steel can do?

6 We work closely with our customers to develop a high quality innovative steel. This way, we create a common foundation for a better future. We are proud of what our steel enables the end user and are convinced that our steel can create conditions for further reducing CO 2 emissions.

7 When you re designing demanding steel components, it often involves a tradeoff between needs and affordability. Strength vs. heat, corrosion vs. strength, quality vs. cost. Not any more. Thanks to an innovative breakthrough from the engineering steel specialists at Ovako, Hybrid Steel resolves these dualities, enabling you to embrace tomorrow s design challenges. Today.

8 REIMAGINE The development of our innovative Hybrid Steel started with a vision. We wanted to develop a steel that could solve many of the challenges that our customers, and end customers struggle with.

9 Our innovative Hybrid Steel enables component manufacturers to achieve exceptional performance, especially in demanding elevatedtemperature applications. It also offers major possibilities to reduce production cost.

10 Rethink. Reimagine. Redesign. Hybrid Steel - a new family of steel for tomorrows engineering challenges.

11 RETHINK Rethink the boundaries of traditional metallurgy Rethink the traditional steps of parts manufacturing Rethink the norms

12 REIMAGINE What if you could combine two hardening mechanisms? What if you could reduce parts production steps by up to 50%? What if there was a steel that challenged established ideas of what engineering steel can do?

13 REIMAGINE What if you could retain fatigue strength at elevated operational temperatures? What if you could use a steel as a facilitator for new designs and also save cost? What if you could get the properties of remelted steel, in large quantities, more cost effectively?

14 REDESIGN Redesign to increase efficiency Redesign to save time Redesign to increase margins

15 REDESIGN Redesign to boost productivity Redesign to increase efficiency Redesign to be part of the future

16 A material created to solve our customers challenges Our ambition is to help the industry get desired material properties, such as corrosion resistance and high strength at elevated temperatures. We aim to do this at a lower price, but without compromising quality. This is possible through providing a Hybrid Steel, that is available in very large volumes. The idea is to get the same technical material properties that they have today, but at a far better price. Area Sales Manager, Ovako We are currently working closely with Bodycote and ten other companies in various industries in order to develop and prototype new applications.

17 FEATURES

18 Hybrid Steel is one of the most significant developments in steel metallurgy for decades Low segregation High steel cleanliness High volume, cost effective High strength at elevated temperatures Low distortion after heat treatment Attractive nitriding properties High corrosion resistance

19 Low segregation. The Hybrid Steel has as low segregation as a re-melted tool steel, but without having to go through the expensive re-melting process Segregation per element Hybrid Steel 50 per. Mov. Avg. (V) 50 per. Mov. Avg. (Mo) 50 per. Mov. Avg. (Cr) Tool steel 50 per. Mov. Avg. (V) 50 per. Mov. Avg. (Cr) Weight [%] 50 per. Mov. Avg. (Ni) 50 per. Mov. Avg. (Al) Weight [%] 50 per. Mov. Avg. (Mo) ,0002 0,0004 0,0006 0,0008 0,001 0,0012 0, ,0002 0,0004 0,0006 0,0008 0,001 0,0012 0,0014 Distance [mm] Distance [mm]

20 High steel cleanliness. Hybrid Steel is our cleanest steel ever produced, resulting in excellent fatigue properties that prolong lifetime and performance of components Hybrid Steel composition C Si Mn S* Cr Ni Mo V Al O* N* Hybrid Steel S + O + N = 19 PPPPPP

21 High volume, cost effective. Hybrid Steel can be produced in large batches, enabling a cost effective price Ovako production site Large batches of Hybrid Steel

22 High strength at elevated temperatures. Three times the yield and tensile strength of conventional steel at 500 C enables reduced material use and energy consumption Yield strength vs Temperature Rp02 [MPa] Hybrid Steel Engineering steel Tool steel Temperature [C]

23 Low distortion after heat treatment. The low distortion enables reduced manufacturing costs by up to 20% Production process cost reduction per process step in relation to total cost Typical steel production cost structure Reducing production cost by 20% Grinding generally stands for 30% of the total cost. Thanks to the low distortion after heat treatment this cost can be reduced vastly. Bearing steel Δ Hybrid Steel 0% 0% +6% +6% -2% -2% -24% -24%

24 Attractive nitriding properties. Maintained high core hardness after plasma nitriding and possibility to reduce material use and nitriding process time which cut costs Plasma nitriding of Hybrid Steel 520 C, 20h HARDNESS AND RESIDUAL STRESS AFTER NITRIDING

25 High corrosion resistance. The high corrosion resistance compared to engineering steels prolongs lifetime of components in corrosive environments ISO Corrosion of metals and alloys 10mV/min 0.01M NaCl Potential mv [S.C.E] The Hybrid Steel reaches values comparable to stainless steel and is more corrosion resistant than bearing steel and tool steel Max Min Average -200 Bearing steel Tool steel 13%Cr stainless Hybrid Steel Acid proof stainless

26 APPLICATION AREAS

27 The unique Hybrid Steel features opens up for the use of steel components in highly stressed applications Bearings and gears Nitrided components Fuel injection components Engine components Machining tools Mining tools

28 Bearings and gears Lower cost and improve performance of bearing and gear applications High temperatures and corrosion pose big challenges to bearings. To face them, we have developed a Hybrid Steel that meets these requirements and also: Enables significant reductions in scrap in late manufacturing steps, thanks to very low distortion Creates logistic advantages, since the one steel grade can be used for both small and large bearing dimensions Has excellent nitriding characteristics for very demanding applications thanks to its high core hardness Importance of Hybrid Steel features Unimportant Very important Low segregation High steel cleanliness Low distortion after heat treatment Attractive nitriding properties The idea is that this material could be used for a variety of bearing applications, so that you do not need six materials for six different applications. High volume, cost effective High strength at elevated temp. High corrosion resistance Jan-Erik Andersson Senior Technical Specialist, Ovako

29 Nitrided components Improved performance thanks to the unique combination of high surface and core hardness Nitrided Hybrid Steel is ideal for strengthening and extending the lifetime of hydraulic and transmission components thanks to features like: High wear and corrosion resistance Low distortion after nitriding High strength The features opens up the possibility to cut process steps and allows for more efficient material use. Read about our collaboration with the nitriding and hydraulics industry. Importance of Hybrid Steel features Unimportant Very important Low segregation Low distortion after heat treatment High steel cleanliness Attractive nitriding properties High volume, cost effective High corrosion resistance High strength at elevated temp. We have only scratched the surface. If we can create a steel family where we can adjust the material to the needs of a specific application, the potential is huge Technical Manager, Bodycote

30 Fuel injection components Reducing emissions requires a steel that manages high pressure at elevated temperatures To face the automobile industry s ambition to improve the quality of diesel combustion, a steel that could manage high pressure at elevated temperature was needed. That is why we developed the Hybrid Steel. Compared to conventional steels, Hybrid Steel performs up to: - 3 times the strength at high temperatures - 10 times the pressure resistance We are currently testing with major manufacturers of diesel injection applications. Importance of Hybrid Steel features Unimportant Very important Low segregation High steel cleanliness Low distortion after heat treatment Attractive nitriding properties We saw that our customers were in need of a material that could handle higher temperatures, and decided to do something about it. High volume, cost effective High strength at elevated temp. High corrosion resistance Patrik Ölund Head of R&D, Ovako

31 Engine components Lower CO 2 emissions and total costs with a lighter engine We aim to help system providers support OEM:s in improving engine components. Our Hybrid Steel enables a lighter engine with lower material use: Thinner engine walls Smaller pistons This enables lowered emissions and lower total costs, and is possible thanks to the steel s high strength at elevated temperatures and high corrosion resistance. We are currently testing how Hybrid Steel can improve engine performance. Importance of Hybrid Steel features Unimportant Low segregation High steel cleanliness Very important Low distortion after heat treatment Attractive nitriding properties The Hybrid Steel opens up for new design solutions in regards to wanted temperatures and increased efficiency. High volume, cost effective High strength at elevated temp. High corrosion resistance Area sales manager, Ovako

32 Machining tools Increased machining tool performance through improvement of critical components For machining tool producers, a steel with high strength and fatigue resistance is key. Our Hybrid Steel pro-longs product lifetime by improving critical components which means: Fewer product replacements Reduced total cost We are currently testing in corporation with European leading tool producers. Importance of Hybrid Steel features Unimportant Low segregation High steel cleanliness Very important Low distortion after heat treatment Attractive nitriding properties The materials they [the clients] use today meet the technical requirements, but are expensive. High volume, cost effective High strength at elevated temp. High corrosion resistance Area sales manager, Ovako

33 Mining tools Increased drilling efficiency at a cost effective price We aim to help the mining industry increase drilling productivity with our Hybrid Steel, that has outstanding properties for demanding: Corrosion environments Temperatures Wear requirements This is a game changer for several components in the drill string, and we are currently testing various mining applications. Moreover, Hybrid Steel is available in large volumes at a cost effective price. Importance of Hybrid Steel features Unimportant Low segregation High steel cleanliness Very important Low distortion after heat treatment Attractive nitriding properties The idea is to get the same technical material properties that they [the customers] have today, but to a far better price. High volume, cost effective High strength at elevated temp. High corrosion resistance Area Sales Manager, Ovako

34 BENEFITS

35 Benefits with Hybrid Steel Hybrid Steel provides benefits across the entire value chain Reduced environmental impact Our Hybrid Steel was initially designed for meeting the challenges of fuel combustion efficiency, by performing in high temperatures. The resulting steel can reduce emissions of CO 2, and also provides an alternative to the use of harmful chemicals. Reduced manufacturing cost and complexity Since the steel develops its hardness after tempering, it can be machined in a softer condition and hardened without risk of distortion. This means that a conventional process can reach a significant reduction in complexity and cost. Efficient material use Low distortion after treatment enables reduced scrap in production High strength enables a component design with lower material use Prolong product lifetime High cleanliness, wear and corrosion resistance, along with the high strength at elevated temperatures, enables a high performing product over time, with reduced breakdowns and increased lifetime.

36 Benefits with Hybrid Steel Hybrid Steel enables reduced CO 2 emissions due to increased engine efficiency High strength reduces material usage The high strength of the Hybrid Steel enables the products, for example an engine, to be: Smaller Thinner Lighter This reduces the environmental impact, for example by reducing the amount of CO 2 emissions. High corrosion resistance improves engine efficiency Diesel injection engines requires material that has high strength at elevated temperatures to manage the high pressure. Legal regulations will increase the demand of more efficient engines, and thus lower CO 2 emissions. Materials with good corrosion properties will be necessary to cope with this development.

37 Benefits with Hybrid Steel Bypass the need for surface treatment and reduce the use of harmful chemicals Many applications are surface treated with chromium Many steel components, like hydraulic applications, are coated with chromium in order to manage its tough requirements on performance. The chroming process requires harmful chemicals One of them is hexavalent chromium, a chemical with usage restrictions by the EU, that are likely to be even firmer in the years to come. We need to find another way As environmental regulations and customer requirements on the usage of hexavalent chromium are getting tougher, we need to find effective alternatives. Hybrid Steel provides a unique opportunity Hybrid Steel has the potential to replace chromed products with untreated material due to its strength, high corrosion resistance and friction qualities.

38 Benefits with Hybrid Steel Eliminating production steps entirely will reduce complexity and manufacturing costs Process the Hybrid Steel in new conditions It is possible for production engineers to machine components in a softer condition and then harden it without any risk of distortion. This means that a conventional manufacturing process can be reduced to fewer stages. Properties of the Hybrid Steel enables simplified production routes The Hybrid Steel develops its full properties only after heat treatment, meaning that manufacturers will be able to adopt new, efficient processes, that eliminate a number of stages. To exemplify, a component might be forged and machined to its final dimensions when it is in a soft and easy to machine condition, and then heat treated to achieve its full strength. This route offers a significant reduction in manufacturing cost and complexity.

39 CUSTOMERS ON NITRIDED HYBRID STEEL

40 What our customers say Our customers see a clear value with the performance increase enabled by nitrided Hybrid Steel AVG VALUE of improvement 0=low to 5=high Surface hardness 4 Nitriding layer stress 4 Core hardness 3 Corrosion resistance 2 Note: Responses from nitriding customers only. Other customers may have other views.

41 What our customers say Our customers see a clear value with the opportunities enabled with nitrided Hybrid Steel AVG VALUE of improvement 0=low to 5=high Lower distortion after heat treatment 4 Fewer process steps 4 Lower material use -production 3 Lower material use -end product 2 Note: Responses from nitriding customers only. Other customers may have other views.

42 Customer in hydraulics sector We search for a material that can help us meet the increasing requirements and stay ahead of our competition Why are you working with Hybrid Steel? We have a premium image, which is important for us to maintain. This means that product life time and quality is our highest priority. We manage current requirements well, but the coming years brings tougher requirements, and as a supplier of high performing premium products we need to stay ahead of our competition. We simply need to be even better in the future! Ovako is prototyping hydraulic components with several customers. One premium brand customer is currently prototyping its quick release with Ovako s Hybrid Steel, a part that requires high performance.

43 Today s requirements on pressure resistance will increase, while room for the component remains limited. Our hope is that Ovako s Hybrid Steel will help us face those challenges. Customer in hydraulics sector

44 Customer in hydraulics sector Ovako s Hybrid Steel can help us to maintain our image as a premium brand Many opportunities Eliminate the need for surface treatment We are testing if Ovako s Hybrid Steel can help us eliminate the need for surface treatment with maintained corrosion resistance. This would be a major advantage for us, since our current process is: Complicated Time consuming Costly Surface treatment makes up 5% of total product cost Increase pressure resistance Within a few years, we will have to increase the pressure resistance of our components from 350 to +420 bar. Smarter design Redesign the component for lowered material use with maintained or increased performance. Ovako is prototyping hydraulic components with several customers. One premium brand customer is currently prototyping its quick release with Ovako s Hybrid Steel, a part that requires high performance.

45 Bodycote We have only scratched the surface of discovering the potential with Ovako s Hybrid Steel Why are you working with Hybrid Steel? We see a value in being able to recommend better materials, that in combination with professional heat treatment solves our customers problems. In order to do that, we need to be in the frontline and constantly learn about new techniques, which is exactly what we are doing with the Hybrid Steel. Bodycote and Ovako are working jointly in the journey of discovering new opportunities with Hybrid Steel.

46 Bodycote We have only scratched the surface of discovering the potential with Ovako s Hybrid Steel A cost effective way to high performance The main reason for using the material is to increase performance in a cost effective way. Hybrid Steel is an extremely stable material with very low distortion, which is critical for heat treatments. Opportunity for significant savings The low distortion makes it ideal for applications with narrow tolerances, and also opens up for the possibility to cut processing steps and thereby significant savings. Tool steel performance in a conventional steel In combination with nitriding, Hybrid Steel can reach almost the same characteristics as a tool steel. However it is not close to as expensive to produce. It is expensive to machine hard materials, and customers who can avoid it can produce to a lower cost. Bodycote and Ovako are working jointly in the journey of discovering new opportunities with Hybrid Steel.

47 Bodycote We have only scratched the surface of discovering the potential with Ovako s Hybrid Steel A family of Hybrid Steels In the near future, we hope to see a Hybrid Steel family, with steel types optimized for each application it will be used for. This would open up for many new interesting areas. Bodycote and Ovako are working jointly in the journey of discovering new opportunities with Hybrid Steel.

48 Customer testimonials It is valuable for us to be able to recommend a better material that solves the customers problem. Mikael Fällström Vice President Bodycote, NEE AGI Sweden and Finland We believe that Ovako s Hybrid Steel will help us maintain our image as a premium brand. Customer in hydraulics industry

49 Hybrid Steel Customer testimonial It is valuable for us to be able to recommend a better material that solves the customers problem. Mikael Fällström Vice President Bodycote, NEE AGI Sweden and Finland

50 Hybrid Steel Customer testimonial We believe that Ovako s Hybrid Steel will help us maintain our image as a premium brand. Customer in hydraulics industry

51 Increased performance - reduced weight. This is a possibility for us to increase margins! Anonymous customer

52 The low distortion of Ovako s Hybrid Steel enables more precise production, which lowers our scrap. Anonymous customer

53 Hybrid Steel Customer testimonial With Hybrid Steel, we see potential to decrease lead time, lower production cost and to get a better finish. Anonymous customer

54 OVAKO QUOTES

55 We saw that our customers were in need of a material that could handle higher temperatures, and decided to do something about it. Patrik Ölund Head of R&D at Ovako

56 Hybrid Steel Hybrid Steel is one of the most significant advances in the steel industry. Marcus Hedblom President and CEO, Ovako

57 The many advantages of Hybrid Steel means that it will have a wide variety of potential in highly stressed applications. Jan-Erik Andersson Senior GroupTechnical Specialist Inventor of Hybrid steel, Ovako