1. Restricted © Primetals Technologies 2016 All rights reserved.primetals.comRestricted © Primetals Technologies 2016 All rights reserved.primetals.com Mike Brammer Business Director, Plate Mills Primetals Technologies Ltd Future-Proofing the Plate Mill A Mill Builder’s View of Adapting to Changing Customer Needs primetals.com

2. Restricted © Primetals Technologies 2016 All rights reserved. Primetals Technologies Ltd. Creating the Future of Metals as One 06.02. 2015 Martin Philipson Page 2 + = Siemens VAI Metals Technologies More than 60 years of metallurgical, engineering and plant-building experience Strong emphasis on R&D and introduction of numerous innovations Worldwide sales organization and global engineering Mitsubishi-Hitachi Metals Machinery (MHMM) More than 2,200 plants installed worldwide with proven record of reliability and cost-effectiveness In-house manufacturing expertise Strong sales setup and engineering competence, particularly in growing Asian countries OWNERSHIP 51% Mitsubishi-Hitachi Metals Machinery Inc. 1 49% Siemens GLOBAL BUSINESS FOCUS Supplier of advanced processes, technologies, plants, products and services for the iron, steel and nonferrous industries COMPREHENSIVE TECHNOLOGY AND PRODUCT PORTFOLIO for totally optimized and integrated processes along the entire metals value chain

3. Restricted © Primetals Technologies 2016 All rights reserved. Primetals Technologies Ltd. Competence Available in all Regions of the World 06.02. 2015 Martin Philipson Page 3 Americas 2,300 employees Eurasia 3,700 employees India 1,000 employees China 1,100 employees Asia Pacific 640 employees HEADQUARTERS: London, U.K. COMPETENCE CENTERS: Austria (Linz), Japan (Tokyo, Hiroshima), France (Montbrison), U.K. (Sheffield, Stockton) Italy (Marnate), Germany (Erlangen, Legelshurst), U.S.A. (Pittsburgh, Worcester, Alpharetta) Nearly 9,000 experienced employees worldwide

4. Restricted © Primetals Technologies 2016 All rights reserved. Contents Page 4 The Asset View  Some Worrying News  Three Attributes of a Resilient Mill  Technical Remedies (and their limitations) The Partnership View  Each Others’ Needs  Co-operative Examples  An Invitation Mike Brammer

5. Restricted © Primetals Technologies 2016 All rights reserved. Some Worrying News….. Page 5 if :Your Plant is of a Typical Age The Asset View and :Your Business Environment Evolves at a Typical Rate then : Your Plant was Designed for a Different Business Mike Brammer

6. Restricted © Primetals Technologies 2016 All rights reserved. Page 6 Does the “Worrying News” Matter? Three Attributes of a Resilient Mill Capability  Width  Capacity Efficiency  Energy  Yield Flexibility  Accessible Mix  Upgrade Path The Asset View Mike Brammer

7. Restricted © Primetals Technologies 2016 All rights reserved. Page 7 Does the “Worrying News” Matter? Three Attributes of a Resilient Mill Capability  Width  Capacity Efficiency  Energy  Yield Flexibility  Accessible Mix  Upgrade Path The Asset View Mike Brammer

8. Restricted © Primetals Technologies 2016 All rights reserved. Page 8 Technical Remedies – Capability (1) The Asset View Width 206” at Lukens Coatesville PA. World’s first (and for over 40 years only) 5 metre plate mill After J Aylen, “The Marketplace for Steel Plate”, IM+SM/IOM3, 2009,  Economics of Widening an Existing Mill?  Critical Markets for a Super-Wide Mill?  How Wide could a Plate Mill be? Mike Brammer

9. Restricted © Primetals Technologies 2016 All rights reserved. Page 9 Technical Remedies – Capability (2) The Asset View Three routes to More Capacity 1.Fuller developed length – Plate-Steckel mill 2.Fewer passes - repowering the mill and SmartCrown ® 3.Higher utilisation (interleaving) Mike Brammer

10. Restricted © Primetals Technologies 2016 All rights reserved. Page 10 Does the “Worrying News” Matter? Three Attributes of a Resilient Mill Capability  Width  Capacity Efficiency  Energy  Yield Flexibility  Accessible Mix  Upgrade Path The Asset View Mike Brammer

11. Restricted © Primetals Technologies 2016 All rights reserved. Page 11 Technical Remedies – Efficiency (1) The Asset View Energy  Lower reheating temps  More self heating via fewer passes  Effective in-line heat treatment (MULPIC ® ) – reduce offline heat treatment 2 New DQ Banks + Existing Laminar = Hybrid Cooling Existing Header Existing Laminar Cooling New MULPIC ® DQ Banks Mike Brammer

12. Restricted © Primetals Technologies 2016 All rights reserved. Page 12 Technical Remedies – Efficiency (2) The Asset View Yield  Taper Rolling  Plan View Rolling  WellMet2050 (Milford) After R Milford, WellMet2050 at the University of Cambridge, 2012

13. Restricted © Primetals Technologies 2016 All rights reserved. Page 13 Does the “Worrying News” Matter? Three Attributes of a Resilient Mill Capability  Width  Capacity Efficiency  Energy  Yield Flexibility  Accessible Mix  Upgrade Path The Asset View Mike Brammer

14. Restricted © Primetals Technologies 2016 All rights reserved. Page 14 Technical Remedies – Flexibility (1) The Asset View MULPIC ® (leaner alloy, higher strength/toughness) Adapting a mill for TMCR – interleaving provision too Model-based control (Virtual test house) Mike Brammer Accessible Mix

15. Restricted © Primetals Technologies 2016 All rights reserved. Technical Remedies – Flexibility (2) The Asset View Upgrade path Strip and plate from same mill? Value-adding (pattern cutting, fab prep) Ultra-thick (ingot lift) Increasing leveller refinement Key plate markets – fabricated structural beams (but what about Ideal Beams?)

16. Restricted © Primetals Technologies 2016 All rights reserved. Page 16 Summarised The Asset View Feasible Upgrade? Examples Capability Width Wide Roughers Capacity Crown-Out Rolling (SmartCrown), Interleaving Efficiency Energy MULPIC Yield Taper Rolling Flexibility Accessible Mix Model-Based Control (Virtual Test House?) Upgrade Path Transformation Monitor (EMSpec) SmartCrown ® Roll Shifting, Interleaving MULPIC ® Taper Rolling Model-Based Control (Virtual Test House?) Upgrade Path High Lift Mill, MULPIC ® Mike Brammer  In each case, a complex upgrade concept relying on the knowledge of both customer and supplier  These are not “off the shelf” product solutions, but neither are they achievable under the “traditional” (adversarial) steelmaker/plant builder relationship  Any investment is desirably based on co-operative partnership between technology collaborators

17. Restricted © Primetals Technologies 2016 All rights reserved. Page 17 Each Others’ Needs The Partnership View  Your ROI, Our ROI  Two Outlooks on Today’s Market  Different Payment Models

18. Restricted © Primetals Technologies 2016 All rights reserved. Page 18 Co-operative Examples – Transformation Monitor The Partnership View Active pickup coil Dummy side Active side Dummy side sensing flux CLCL Ferrite core Common excitation coil Strip Dummy pickup coil Active side sensing flux Mill rolling standsCoilerControlled cooling Transformation sensors 1N Tension load, Torque Roll gap Speed Thickness Temperature Width, Shape, Profile Temperature Online real time measurement of Ferrite fraction Direct feed back to rolling and cooling models for precise control 3 units installed and in operation in Ijmuiden Hot Strip mill Mike Brammer

19. Restricted © Primetals Technologies 2016 All rights reserved. Page 19 Co-operative Examples – Thin and Wide Plate The Partnership View Through process improvements through collaboration Percentage of Plates BEFOREAFTER Mike Brammer 6mm X 4100mm

20. Restricted © Primetals Technologies 2016 All rights reserved. Page 20 Steckel Mill Repowering of Mill and Steckel Furnaces, Drive Train upgrade Mill modifications Descaling equipment upgrade Automation modifications Downcoiler Powercoiler to coil 1” thick X70 Coil Handling Equipment Coil Inspection & Banding Station Electrical and Automation equipment Roughing Mill Repowering of Mill Drive Train upgrade S.M Runout Table Replacement of Headers Increase water flow Automation upgrade Roughing Mill Downcoiler Co-operative Examples – Complete Plant Revamp The Partnership View Mike Brammer

21. Restricted © Primetals Technologies 2016 All rights reserved. Page 21 An Invitation The Partnership View  Primetals is looking for a co-development partner in steel plate rolling  We would like to adopt a single mill, ideally in Europe, as our test-bed for new technology, especially in process control, metallurgy and instrumentation  We would like to meet any interested parties. As well as explaining our R+D portfolio, we would invite the potential partner to explain their mill issues, both operational problems and aspirational development plans. We would undertake to put resource into helping with both  We would really like a MULPIC ® partner. We would hope to supply one under some variant of Payment by Earnings terms

22. Restricted © Primetals Technologies 2016 All rights reserved. Page 22 An Invitation The Partnership View Mike Brammer Partners for Successful Collaboration End User Technology Provider Plate Producer

23. Restricted © Primetals Technologies 2016 All rights reserved. Mike Brammer Page 23 THANK YOU © Primetals Technologies 2015 All rights reserved. primetals.com