Rhi Magnesita Nv · LSE:RHIM
Rhi Magnesita Nv — Technical Presentation (November 2018)
49 slides from Rhi Magnesita Nv's technical presentation, Nov 28, 2018
Slide 1: Investor & analyst site visit
Investor & analyst site visit Leoben R&D Facility Veitsch Plant 28 November 2018
Slide 2: Disclaimer
Disclaimer The consolidated financial statements subscribe for or purchase any securities, and presented here are consistent with the neither any part of this presentation nor any criteria of international accounting standards information or statement contained herein - IFRS issued by the Internatio
Slide 3: Today's agenda
Today’s agenda 09:00 Welcome – Stefan Borgas 09:05 – 09:15 Global trends in the refractory market – Reinhold Steiner 09:15 – 10:00 R&D presentation & Q&A – Stefan Schriebl 10:00 – 11:30 Tour of R&D facility – Christian Majcenovic, Stefan Schriebl 11:30 – 12:00 Prettachfeld tour Part 1: Simulation &
Slide 4: Overview
Overview Reinhold Steiner – Chief Sales Officer 4
Slide 5: Global trends in the refractory market
Global trends in the refractory market Volatility Automation / Digitalisation Logistic Technical Demand Performance Demand Megatrends Commoditi- Differentiation / sation Environment Price Specification Demand Demand 5
Slide 6: Serving all blue chip clients in every industry
Serving all blue chip clients in every industry Steel Cement Glass Metals Serving 1,376 Serving 800 Serving 650 Serving 1,060 of 1,250 plants1 of 1,537plants1 of 900 plants1 of 2,000 plants1 1ex-China 6
Slide 7: R&D and Leoben Technology Centre
R&D and Leoben Technology Centre Stefan Schriebl – Head of R&D Europe 7
Slide 8: Top solution provider in the industry, investing in innovative technologies and digitalisation
Top solution provider in the industry, investing in innovative technologies and digitalisation Continue investing in R&D Develop into a system & 1 to create products, which 3 solutions supplier based have a distinct competitive on R&D, partnerships and advantage by costs or by selective acquisitions
Slide 9: Refractories are continuously consumed during finished goods production
Refractories are continuously consumed during finished goods production Key industries Applications Replacement % of clients’ Refractory characteristics costs Consumable product Steel Basic oxygen-, 20 minutes to ~3.0% electric arc furnace 2 months Systems and solutions for casting ladles complete r
Slide 10: A complex range of tailored refractory products are required for each application
A complex range of tailored refractory products are required for each application Bricks Example of refractory application for steel ladle 2 3 1 Permanent lining 2 Non-basic, 3 Basic, ex. ex. Alumina Mag-Carbon 4 1 Monolithics and pre casts 5 6 8 4 Mixes 5 Pre Castables Functional products 7 9 6 Sli
Slide 11: The industry's largest dedicated research team
The industry’s largest dedicated research team, pushing the boundaries of what is possible We drive innovation in every aspect of our business, from Global research team of 270+ employees, of which 98 have materials, robotics and Big Data, to bespoke new masters and PHDs, working out of 2 corporate
Slide 12: Hybrid approach: Large R&D Centres in close collaboration with local R&D Units
Hybrid approach: Large R&D Centres in close collaboration with local R&D Units Proximity to customers enabling day-to-day support and corporate R&D for more complex / medium term programmes Corporate R&D Centres Local R&D Units (Leoben, Contagem) (York, Dalian, Hünenberg, Bhiwadi, Visakhapatnam) ⬢Cr
Slide 13: Global Technology Leadership
Global Technology Leadership R&D activities are concentrated mainly in Europe at the Leoben Technology Centre ⬢ The focus of a global, internal technology network ⬢ Highly motivated, competent and creative team of refractory experts ⬢ >170 international experts in Leoben ⬢ Product innovation & devel
Slide 14: History of the Technology Centre and R&D
History of the Technology Centre and R&D ~60 year history 1959 Research Institute Veitscher- Magnesitwerke AG (VMAG) founded 1993 Merger of VMAG with Radex Austria to 1959 form Veitsch-Radex AG; fusion of all Research Institute Veitscher- research activities in Leoben Magnesitwerke AG (VMAG) 1999 Me
Slide 15: Cooperations, partnerships & networks
Cooperations, partnerships & networks Universities and external research capabilities Austria: University of Leoben, TU Graz and University of Graz, TU Vienna and University of Vienna, Johannes Kepler University Linz, FH Wels Brasil: Universidade Federal de Sao Carlos, Universidade Federal de Minas
Slide 16: Other capabilities at Leoben
Other capabilities at Leoben In addition to R&D activities, the Technology Centre carries out a series of support functions to assist production plants, sales and marketing departments: Logistics Purchasing Raw materials procurement Patents, IP Technology Quality management 16
Slide 17: Analytical services: Mineralogy, chemistry, physics
Analytical services Mineralogy, chemistry, and physics Investigations for product Standard testing for key development and quality characteristics assurance Mineralogy Refractory investigation Physics Post mortem analyses and testing competence centres Chemistry Chemistry Customer oriented, continuo
Slide 18: Technical Service Department
Technical Service Department Prototyping, small scale production, testing Raw material In service synthesis simulations Pilot plant - Product production of wear testing prototypes and studies Material and Development of product testing innovative test and simulation methods 18
Slide 19: R&D and technical activities with a global reach
R&D and technial activities with a global reach Product Master Data. Quality Assurance Leoben/Contagem R&D Europe R&D South America R&D North Amerika R&D China Leoben Contagem York Dalian Local PMO/Site Mgmt Local PMO Intellectual Property Simulation Refractory R&D Refractory R&D Refractory R&D Refr
Slide 20: Key R&D initiatives to discuss today
Key R&D initiatives to discuss today Merger benefits Driving customer solutions Artificial Intelligence, Big Data & digitalisation Recycling 20
Slide 21: 1. Merger benefits to our R&D business
1. Merger benefits to our R&D business Creating the industry’s largest global R&D team; driving innovation ⬢Fast local reaction time combined with strong global concept ⬢Create a sustainable competitive cost platform through the most efficient use of the global production footprint – differentiate p
Slide 22: 2. On-site technical experts consult, develop and deliver innovative solutions directly to clients
2. On-site technical experts consult, develop and deliver innovative solutions directly to clients 340+ technical engineers across 90 countries, working on-site with clients to provide custom-made solutions, installation support, recycling, post-mortem analysis and more A combination of… …ensures cu
Slide 23: 3. R&D initiatives: Industry 4.0 and Digitalisation
3. R&D initiatives: Industry 4.0 and Digitalisation Production & Production & Customer Customer Procurement Supply Installation Consumption Network Customer Warehouse Fully automated refractory system 23
Slide 24: 3. R&D initiatives: BRICK DATA Hub – single item tracking
3. R&D initiatives: BRICK DATA Hub – single item tracking Results ⬢Data from all process steps are collected for each individual brick ⬢Tracing bricks from tunnel kiln to Non Destructive Testing (100% quality check ) ⬢Fingerprint in lab-trials successful => production conditions Create ID of Track g
Slide 25: 3. R&D initiatives: Automated Process Optimisation
3. R&D initiatives: Automated Process Optimisation Using artificial intelligence to analyse and understand relevant information; forming the basis of the refractory wear model Input AI analytics software Output Residual lining thickness Forecast of refractory lifetime Lining thickness data during li
Slide 26: 3. R&D initiatives: Automated Process Optimisation (APO)
3. R&D initiatives: Automated Process Optimisation (“APO”) Fostering a greater understanding of the correlation between steel production parameters, maintenance and refractory by analysing data on a central master computer, using artificial intelligence (“AI”) methods. Customer risks: Unforeseen d
Slide 27: 3. R&D Initiatives: APO
3. R&D Initiatives: APO 3D lining representation of Laser Contouring System 27
Slide 28: 3. R&D Initiatives: APO – Management information tool
3. R&D Initiatives: APO Management information tool 28
Slide 29: 3. R&D Initiatives: APO – Real time information on mobile devices
3. R&D Initiatives: APO Real time information on mobile devices ⬢Predictable lining lifetime ⬢Reduction of refractory consumption ⬢Increasing breakout safety ⬢Optimized Steel plant logistics ⬢Daily Reports 29
Slide 30: 4. R&D initiatives: Recycling of refractories
4. R&D initiatives: Recycling of refractories Driving positive change in the industry Source Process Sell Industry plants Recycling facility Possible destinations: New Recycling Process Refractories Refractory Landfilling Companies Sorting New refractory (sold as SRM) application Crushing Internal u
Slide 31: 4. R&D initiatives: Recycling of refractories – business model
4. R&D initiatives: Recycling of refractories Business model & process approach Refractory Refractory consumers companies Steel plants RHI Cement Magnesita plants Source Process Sell Glass plants Competitors Etc. Metallurgical Eco-Minerals Products 31
Slide 32: 4. R&D initiatives: Recycling of refractories – competitive advantages
4. R&D initiatives: Recycling of refractories Our competitive advantages Technical knowledge on refractories (R&D/TM) Supply network – our own customers Customer relationship Strong and constant internal demand Knowledge on metallurgy 32
Slide 33: Training Centre & Simulation
Training Centre & Simulation
Slide 34: Modelling & Simulation
Modelling & Simulation Computational Fluid Dynamics (CFD) Single and multiphase flows in metallurgical aggregates (purging in vessels) Flow pattern in a thin slab caster mould Temperature distributions in furnace linings (transient heat-up and cool-down processes) Reactive flows (combustion, b
Slide 35: Training Center Cement
Training Center Cement Training Center Cement 35
Slide 36: Training Center Cement
Training Center Cement Our Objectives Our Offer Share knowledge and expertise on the correct Assistance to improve availability and productivity of installation of refractories cement kilns Generate an added value for customers from the People development in a very specialised field cement (
Slide 37: Q&A
Q&A 10:00 – 11:30 Tour of R&D facility – Christian Majcenovic, Stefan Schriebl 11:30 – 12:00 Prettachfeld tour Part 1: Simulation & water models – Gernot Hackl Part 2: Training centre & big data visualisation – Thomas Reiterer
Slide 38: Veitsch Plant
Veitsch Plant Thomas Harm – Plant Manager, Veitsch 38
Slide 39: Occupational safety: LTIF & TRIF trend
Occupational safety: LTIF & TRIF trend Safety is our number one priority Checklists for new employees Coord. Summer campaign apprentices Group training – role models & multiplicators Define ‘ 18 safety programme Summer campaign Summer campaign Defining pers. Safety targets ‘Hazard perception’ traini
Slide 40: Veitsch plant
Veitsch plant Fully automated refractory plant Optimised use of space – shaped by the valley Three manufacturing lines Mixes (MU – unformed magnesia) Fired bricks (MGG – formed fired magnesia) Carbon bonded bricks (MGU – formed unfired magnesia) 2017 refractory production: 233Kt 2017 t
Slide 41: Raw materials input
Raw materials input We process more than 140 different raw materials according to 500 recipes 41 Q3 2018 Trading Update
Slide 42: Product lines
Product lines MU: Mixes for steel and cement industry: High product diversity – small lot sizes MGG: Bricks for cement rotary kilns: Highly competitive products MGU: Bricks for steel linings: High product diversity 42
Slide 43: Veitsch customers
Veitsch customers Shipping globally to 118 countries 43
Slide 44: Appendix
Appendix
Slide 45: Note: Olo verione por adis que
45 Note: Olo verione por adis que
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46 Note: Olo verione por adis que
Slide 47: Refractories are critical to all high-temperature industrial processes
Refractories are critical to all high-temperature industrial processes Refractories are critical consumable or Main end markets €20 billion worldwide industry investment goods for high-temperature manufacturing processes ◼ Steel ◼ Energy, chemicals Refractory materials consumed whilst ◼ Nonferrous
Slide 48: Extend market position in high quality applications and strengthen non-basic mixes and functional products
Extend market position in high quality applications and strengthen non-basic mixes and functional products Portfolio Main Applications Opportunity ⬢ Strong capability and logistics: production in all continents and short lead-time to everyone, everywhere ⬢ Steel: steel making Basic Products ⬢ Produc
Slide 49: For more information, please contact the IR team
For more information, please contact the IR team investorrelationsteam@RHIMagnesita.com Q3 2018 Trading Update
RHI Magnesita — Technical Presentation (November 2018) on 6ix