Oerlikon BalzersGlobal leader in advanced surface technologyDecember 4, 2014Dr. Helmut Rudigier

Company Overview – Five core competencies

Manmade Fibers Segment

Manmade Fibers Segment

Advanced TechnologiesSegment

Advanced TechnologiesSegment

Drive SystemsSegment

Drive SystemsSegment

Surface SolutionsSegment

Surface SolutionsSegment

VacuumSegmentVacuumSegment

Gaining strength for the next level.

We are a leading global supplier of PVD coatings and other surface technologies for precision components as well as metalworking and plastics processing tools. Together with Oerlikon Metco we are about to become the world technology leader in surface solutions. With our combined strengths we will provide even better solutions to our customer’s demands in the future. A wide spectrum of industries will benefit from new possibilities created from the combined product and solution portfolio.

Gaining strength for the next level.

We are a leading global supplier of PVD coatings and other surface technologies for precision components as well as metalworking and plastics processing tools. Together with Oerlikon Metco we are about to become the world technology leader in surface solutions. With our combined strengths we will provide even better solutions to our customer’s demands in the future. A wide spectrum of industries will benefit from new possibilities created from the combined product and solution portfolio.

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Surface Technologies

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THIN-FILM COATING� PVD

� PECVD (PACVD)

THICK LAYER COATING� Thermal Spray� Laser Cladding

DIFFUSION� Plasma-nitriding� Gas-nitriding

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Our business: Tailor–made solutions for all requirements

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Coating servicesPick-up serviceShort and dedicated delivery timesCentres in 34 countriesReconditioningPolishing

Inhouse centresCustomized coating linesIntegrated into the customers facilities; run by Balzers 8 centres in operation

Coating systemsHighly productive and reliable equipmentAbout 650 coating systems in operation world-wideAfter-Sales Service

Balzers develops coatings, coating technologies and equipment

Key data for Business Unit Oerlikon Balzers

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� Unique company with global network for coating service

� 94 coating centres in 34 countries

� CHF 511 million sales in 2013

� About 3500 employees worldwide

� About 30% global market share(job coating)

� Approximately 3.5 times biggerthan the No. 2

� R&D expenses: approx. 7% of sales

Close to you – Anywhere in the world

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AmericasArgentinaBrazilCanadaMexicoUSA

EuropeAustriaBelgiumCzech Rep.FinlandFranceGermanyHungaryItalyLiechtensteinLuxembourg

NetherlandsPolandPortugalRomaniaRussiaSpainSwedenSwitzerlandTurkeyUnited Kingdom

AsiaChinaIndiaIndonesiaJapanMalaysiaPhilippinesSingaporeSouth KoreaThailand

22 Centres 39 Centres 33 Centres

Oerlikon Balzers Market Segments

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Cutting Tools Forming ToolsPrecision

ComponentsAutomotive

Components

Forming tools for metal & plastic processing(e.g. moulds & dies)

Precision components(e.g. watch components, bearings, shaving knifes)

High volume automotive components (e.g. diesel injector parts, piston pins)

Cutting tools for metal machining (e.g. end mills, drills, hobs, inserts)

Design Parts

Decorative coatings as substitute to traditional chrome plating solutions(ePD™)

Tools Components

Why do customer pay for coatings?Automotive: Improved fuel economy

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Energy balance of a passenger carat part-load operation (1)

21.5% energy to move the car

33% Exhaust gas

16.5% Friction losses (11.5% engine, 5% transmission),

25% Other losses

100%

Ene

rgy

inpu

t

(1) Source: K. Holmberg et al. Tribology International 47 (2012) 221: CO2 emissions. Study assumes 60km/h, driving cycle 8l/100km, 75kW engine.

(2) Calculated for 15l/100 km assumed for part load conditions as typical for city traffic.

FrictionAreas

Fuel saving byreduced friction[l/100km (2)]

Piston group

Crankshaft

Valve train

0.7 – 1.4

0.2 - 0.4

0.1 – 0.2

Friction reduction is important Thin Films: Enabling Diesel injection

� Reliable operation at highest pressures (currently up to 2500 bar)

� Compliance with narrow system tolerances < 1 µm

� Long service life combined with minimal wear

Why do customer pay for coatings?Performance drives innovation

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ProductivityTool life

TiAlXN

AlCrNMultilayer

TiAlNMultilayer

XAlTiXN

X

+ Al

AlTiN

AlCrXN

X

AlCrN

TiAlN

Time2001 2003 2006 2010 2011 2012

~1985

~1996

~1999

2006

2009 Material removal rate [cm3/min]*)

x 15

*) tool: Ø 10 mm end mill, workpiece material: heat-treatable steel 800-1000 N/mm2, source: customer

� A 50% increase of tool life cuts costsper piece by only 1%

� A 30% reduction of tool costs reduces costsper piece by only 1%

� An increase of cutting parameters by 20%(cutting speed, depth of cut) reduces costsper piece by 15 %

Tools

X denotes a doping element

BALINIT ® boosts productivity by 20%

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Threaded cores for bottle caps Description

Production process: injection moulding

Particularity: lubricants and mouldrelease agents cannot be used for pharmaceutical or food packaging

Threaded cores uncoated

Production downtime: 1 day per week

Threaded cores BALINIT ® -coated

� Trouble-free production during several months

� 10% shorter cycle times

� Yield productivity gains of up to 20%

Broadband coatings versus application specific coatings

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High-end coatings for special applications. BALINIT® ALDURA for hard machining, BALINIT® ALNOVA for Ti and stainless steel, X.CEED for Inconel.

BALINIT®

LATUMA

BALINIT®

ALNOVABALINIT®

ALDURA

20HRC 50HRC 65HRC

Per

form

ance

Hardness of work piece

BALINIT® ALCRONA PRO

Wood

cera

mic

s

Wear mechanism

abrasive abrasive+adhesive adhesive

Coa

ting

thic

knes

s

grap

hite

wrought Al-alloys

AlSi10, AlSi9Cu

CFRP

AlSi17, AlSi20

MMC

DIAMOND ta-C

Machining non ferrous materialsApplication for Diamond and ta-C (*)

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(*) ta-C: tetragonal amorphous carbon; a hydrogen free carbon modification with a large fraction of sp3-type bounds.

Diamond coatings

BAI730D

6 µm

60 µm

Applications: Machining of graphite, CFRP materials, abrasive Al-Si alloys

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Today’s state-of-the-art coating technologies

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Process characteristics

�High degree of Ionization

Coating properties

�High density, high hardness

�Excellent adhesion

� Less smooth, droplets

Process characteristics

� Low degree of Ionization

Coating properties

� Low density, low hardness

� Moderate adhesion

�Smooth surface

Oerlikon Balzers’ S3p™ – Far beyondconventional HiPIMS technology

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Pulse duration [ms]

1

0.2

3

Pla

sma

dens

ity a

.u.

2 20 200

ConventionalHiPIMS

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� 100% Balzers developed power supply technology

� Scalable pulse duration and current

� Excellent control of pulse shape

� Covers a significantly wider range of current density compared to conventional HiPIMS

� Enables coatings precisely tailored to your needs

HiPIMS: High Power Impulse Magnetron Sputtering

S3p™: coating morphology at variable ionizationTailoring material properties

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Reference coatings

DC-sputter ARC evaporation

S3pTM; high ionizationS3pTM; low ionization

DC-sputter ARC evaporation

1um 1um

column size

Scalable Pulsed Power Plasma enables HiPIMS– without limits

Arc

Advantage of S3p™ Excellent smooth surface; example chip flute

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Coating: BAI 830 : TiN (4µm); INNOVA; S3p™: TiAlN, 4µm, polished carbide drills

Arc EvaporationINNOVA

1000x

10000x

IONITRON Technology low voltage electron beam evaporation

S3p® INGENIA

1000x

10000x10000x10000x

1000x

Advantages of S3p™ coatings

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Selected internal test results

S3p™- AlCrN-basedThread forming

PVD Arc - TiAlN-basedDrilling wo posttreatment

S3p™- TiAlN-basedDrilling w/o posttreatment

PM-HSS thread former M10 42CrMo4 1.7225 1000 N/mm2

vc = 17.5 m/min; Depth: 20 mmblind hole; emulsion cooling

Torque (Nm)Arced coating w/o post-treatment S3p™ coating w/o post-treatment

Drilling 5 x D: 42CrMo4 (1.7225), Ø 6.0 mm, vc = 80 m/min, f = 0.12 mm, internal coolants

S3p™ coating w/o posttreatmentArced coating w/o posttreatment

time(s)

Torque (Nm)

sec -10

-5

0

5

10

15

20

25

30

sec

Torque (Nm) Torque (Nm)

0 1 2 3 4 5

sec

0 1 2 3 4 50 1 2 3

BALIQ MICRO CoatingsNew coatings made possible with S3p™

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BALIQ ™

MICRO ALCRONOSBALIQ ™

MICRO TISINOS

20HRC 50HRC 65HRC

Pro

duct

ivity

/ Too

l Life

Application temperature/ hardness

Micromachining

up to HRC 70

BALIQ TAP ALCRONOS redefines thebenchmark in process reliability.

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The technological progress The hands-on advantages

Smooth and defect-free coatings with outstanding adhesion >

Superior process reliability under all application conditions, no post-treatment necessary

Low susceptibility to sticking of AlCrN-based coatings >

Prevention of adhesion and build-up edges even with difficult-to-machine materials

Coating design possible even beyond TiN / TiCN > Universal deployment: one coated

tool for several applications

High wear resistance of AlCrN-based coatings even under severe thermal stress

>Long tool lives, even under MQL and dry machining conditions

Process reliability in thread formingApplication: Stainless steel

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ToolPM-HSS thread former M3

WorkpieceSteel 1.4571 (AISI 316Ti, SUS 316 Ti)

Machiningvc = 12 m/minThread depth: 7.5 mmBlind holeEmulsion 6%

SourceOerlikon Balzers andUniversity of Hamburg

Tool life (number of threads)

1.200

2.000

1.800

1.600

1.400

1.000

800

600

400

200

0

+171%

BALIQ™ TAP ALCRONOS

BALINIT® A(Ionitron)

BALIQ MICRO ALCRONOS redefinesthe benchmark in process reliability

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The technological progress The hands-on advantages

Smooth and defect-free coatings with outstanding adhesion >

Smooth chip removal without mechanical post-treatment, high coating surface quality for high component quality

High coating thickness precision for very sharp edges >

The ultimate in tool precision

Low susceptibility to sticking of AlCrN-based coatings >

Prevention of adhesion and build-up edges even with difficult-to-machine materials

High wear resistance of AlCrN-based coatings even under severe thermal stress >

High thermal stress resistance of tools with small dimensions, highly reproducible tool service lives

Convincing test results for microdrillsDrilling in stainless steel

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ToolMicrodrillD = 1.0 mm

WorkpieceSteel 1.4571 (AISI 316Ti, SUS 316 Ti)

MachiningLD: 20 x dEmulsion

SourceTool manufacturer Europe0

50

100

150

200

250

300

350

Uncoated BALIQ MICRO ALCRONOS

Arc Evaporation

Tool fracture/process not reliable

Tool life (number of holes)

BALIQ INSERT ALTINOS: innovative machining with high process reliability.

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The technological progress The hands-on advantages

Smooth and defect-free coatings with outstanding adhesion > Top-tier coating surface quality for

high component quality

High wear resistance of AlTiN-based coatings even at high service temperatures >

Very high thermal stability of the tool,resulting in long tool lives withperceptibly fewer tool changes

High coating thickness precision and precise coating of even the sharpest cutting edges >

Significant performance gains mainlywith smallest chip thicknesses andoptimised component surface quality

Low susceptibility to sticking of AlTiN-based coatings. >

No adhesion and built-up edgeformation even for difficult-to-machine materials such as titaniumand stainless steels

BALIQ INSERT ALTINOS for finish machining stainless steel

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ToolCarbide insert

WorkpieceSteel 1.4571 (AISI 316Ti,SUS316Ti)

Cutting parametersvc = 50 m/minf = 0.03 mm/revap = 0.2 mmDry cutting

SourceOerlikon Balzers CuttingLaboratory

Rel. tool life (%)

0

50

100

150

200

250

300

350 +224%

BALIQ TM INSERTALTINOS

conventional coating

Thank you.

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