Air Liquide SA · EURONEXT:AI
Air Liquide SA — Q1 2019 Earnings Presentation
33 slides from Air Liquide SA's earnings presentation, Apr 26, 2019
Slide 1: Q1 2019 Activity
Q1 2019 Activity Continued sustained growth Very active business development Fabienne Lecorvaisier, Executive VP Michael Graff, Executive VP Paris, 26 April 2019
Slide 2: Q1 Well Aligned with NEOS Objectives
Q1 Well Aligned with NEOS Objectives Continued sustained sales growth: +9%, comparable +5% Action plans launched for increased efficiencies > €400m/year Strong cash flow Pursued active business development 2 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services fo
Slide 3: FX Tailwind, Solid Markets
FX Tailwind, Solid Markets Outlook Forex Impact(1) Markets Q2 19 Chemicals +2.9% LI Oil & gas Steel Metal Fab. Energy impact(1) Construction IM Energy +0.7% Food & Pharma Techno & Research EL Integrated Circuit (1) On Group Q1 2019 sales 3 26 April 2019 Q1 2019 Activity A world l
Slide 4: High G&S Growth, Recovering E&C and Strong GM&T
High G&S Growth, Recovering E&C and Strong GM&T 4 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 5: Very Active Quarter
Very Active Quarter Performance Focus M&A Launch of accelerated Acquisition of Tech Air efficiency plans in the U.S. Technologies and Innovation Long-Term Contracts Grand opening of Tokyo €50m ASU contract in Russia Innovation Center with Electronics WBL customers Investment to build the world large
Slide 6: Solid Growth Levers
Solid Growth Levers G&S comparable sales growth WBLs Main Geographies contributing Industrial Merchant + 3% Asia, Europe, Africa & Middle East Large Industries + 5% Developing Economies Healthcare + 5% Europe, Americas Electronics +14% Asia, Americas 6 26 April 2019 Q1 2019 Activity A world leader i
Slide 7: Solid Base Business
Solid Base Business G&S quarterly growth analysis Unfavorable Working Day Impact (1) Comparable growth based on 2016 adjusted sales 7 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 8: Q1 - Solid Americas and Europe
Q1 - Solid Americas and Europe G&S comparable sales growth Americas - Strong activity in EL and HC LI: high comparison basis; strong H2 volumes Sa les Q1 2019 IM: solid cylinder volumes in most markets; One fewer working days €2,069m Dynamic HC in the U.S. and South America EL: very strong i
Slide 9: Q1 - Strong Momentum in Asia, Robust Growth in AME
Q1 - Strong Momentum in Asia, Robust Growth in AME G&S comparable sales growth Asia - Very Dynamic LI: Ramp-Ups in China, high H2 volumes Sa les in Singapore Q1 2019 IM: China with high bulk and cylinder volumes, sales >+15%; positive Japan €1,194m EL: Start-Ups in Carrier Gases, very strong A
Slide 10: Q1 - Robust IM, Start-Ups in LI
Q1 - Robust IM, Start-Ups in LI G&S comparable sales growth Industrial Merchant - Solid Growth One fewer working days Sales Q1 2019 Cylinder volume growth €2,365m Pursued strong pricing at +3.3% Large Industries - Strong Activity Sa les High contribution from Start-Ups and Q1 2019 Ramp-Ups €
Slide 11: Q1 - Consistent HC, Continued Very High Growth in EL
Q1 - Consistent HC, Continued Very High Growth in EL G&S comparable sales growth Healthcare - Steady Organic Growth Sa les High single-digit growth in HHC, Q1 2019 limited impact from bolt-on acquisitions €897m Very strong Medical Gases in Americas with Proximity care and success of innovative c
Slide 12: EL - Differentiation through High Value Products
EL - Differentiation through High Value Products Carrier Gases and Advanced Materials key growth drivers €1,750m Global leader, #1 in Asia, #1 in China Services Equipment & Installation Partnership approach enabling Specialty Materials customer technology advancement €830m Advanced Materials B
Slide 13: EL - Stronger Margin Mix
EL - Stronger Margin Mix OIR versus Sales - Innovation-driven growth enhancing Base 100 in 2003 margin mix 500 New Offers in Standard Plant to meet evolving needs of industry 400 - Continuous drive for efficiencies in 300 Opex and Capex Bringing value through new Advanced 200 Materials 100 200
Slide 14: EL - Capturing Growth in an Expanding Industry
EL - Capturing Growth in an Expanding Industry FROM TO 5G enabler “Chips” will be in everything enabling IoT, AI and Automotive Internet of Things - IoT Big Data Key market drivers are all connected Personal Computer- PC Automotive 5G connectivity enables enhanced Cellphones Artificial Intelli
Slide 15: Strengthened Efficiency Program Launched
Strengthened Efficiency Program Launched 2019 Cumulated efficiencies efficiencies Energy optimization: Target in 2020 China, Germany, India >€ 1.5bn 77m € Routing optimization: U.S., China, France New program launched: Helium losses reduction Airgas efficiencies in cylinders in China Organ
Slide 16: Decisions and Opportunities at High Level
Decisions and Opportunities at High Level Investment Q1 2019 Q1 2019 Investment Opportunities(1) Start-up/Ramp-up Decisions(1) 12-month portfolio Sales Growth Contribution €2.7bn €0.9bn €103m Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 • Well-balanced by geography • High level of signings • 7 St
Slide 17: Confirmed Start-Ups Forecast > €300m
Confirmed Start-Ups Forecast Major Start-Ups 2019 Q1 Q2 Q3 Q4 EL Pemex EL LI LI Steel EL LI Projects T/O Projects T/O Projects Projects Projects Project Asia Mexico Asia China Middle- Europe Asia Argentina East Sales growth contribution - FY 2019 >€300m Note: T/O = Take Over 17 26 April 2019 Q1 2019
Slide 18: 2019 Outlook
2019 Outlook Q1 2019 2019 Continued sustained “Assuming a comparable growth in G&S environment, Air Liquide is Action plans deployed for increased efficiencies confident in its ability Strong cash flow to deliver net profit growth Expanding investment in 2019, calculated at opportunities con
Slide 19: Q1 2019 Appendix
Q1 2019 Appendix 19 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 20: Q1 2019 G&S Revenue Breakdown by Region
Q1 2019 G&S Revenue Breakdown by Region Europe €1.8bn Asia- Americas Pacific €2.1bn €1.2bn €5,237m Industrial Merchant Large Industries Healthcare Electronics 20 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 21: Americas
Americas Q1 Gas & Services Sales: €2,069m Industrial Merchant Large Industries Healthcare Electronics • Most end-markets contributing to • High H2 volume in North • Strong Medical gases in the • Strong momentum in growth, particularly Metal fabrication. America U.S. with Proximity care & Carrier Gas
Slide 22: Europe
Europe Q1 Gas & Services Sales: €1,829m Industrial Merchant Large Industries Healthcare • Broad based geographic growth • High refining demand (Benelux) • Very steady organic growth • Proactive actions to develop cylinder • Solid growth of air gases sales in • Strong HHC, especially with increased s
Slide 23: Asia-Pacific
Asia-Pacific Q1 Gas & Services Sales: €1,194m Industrial Merchant Large Industries Electronics • Very dynamic China >+15%, • 3 Start-Ups in China in Q4 2018 • >+10% growth in Carrier Gases strong bulk (O2 and Ar) and • Strong H2 in Singapore China and Singapore cylinders • Dynamic Advanced Materials
Slide 24: Industrial Merchant Pricing
Industrial Merchant Pricing +3.8% Americas +4.2% Q1 2019 Europe +3.2% Q4 2018 +2.6% Asia-Pacific +1.4% +1.2% Africa & Middle East +5.3% +3.4% Total - Industrial Merchant +3.3% +3.3% 24 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 25: Q1 2019 - E&C Gradually Recovering, Strong Growth in GM&T
Q1 2019 - E&C Gradually Recovering, Strong Growth in GM&T E&C GM&T €93m +5% €111m +16% Sales Sales €147m -23% €127m +4% Order Intake Order Intake 25 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 26: Steady Backlog > €2bn
Steady Backlog > €2bn Decisions Start-ups €2.2bn €2.1bn €2.1bn €2.1bn in €bn € 0.8bn Dec 2016 Dec 2017 Dec 2018 Decisions Start-ups March 2019 Yearly Sales Backlog(1) after full Ramp-ups See definitions in appendix 26 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services
Slide 27: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue 27 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 28: Revenue Analysis by Quarter and by Business Line
Revenue Analysis by Quarter and by Business Line 28 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 29: Revenue Analysis by Quarter and by Geography
Revenue Analysis by Quarter and by Geography 29 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 30: G&S Revenue Growth by Quarter and by Impact
G&S Revenue Growth by Quarter and by Impact 30 26 April 2019 Q1 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 31: Investment Cycle – Definitions
Investment Cycle – Definitions ● Investment opportunities at end of the period – Investment opportunities under consideration by the Group for decision within 12 months. – Industrial projects with investment value > €5m for Large Industries and > €3m for other business lines. – Includes asset replac
Slide 32: Regular and Sustained Performance
Regular and Sustained Performance CAGR over 30 years(1) 24 000 Revenue (in €m) +5.8% EPS(2) (in €) +6.9% 20 000 5,0 16 000 4,0 12 000 3,0 8 000 2,0 4 000 1,0 0 0,0 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2
Slide 33: For further information, please contact: Investor Relations
For further information, please contact: Investor Relations Communication Aude Rodriguez + 33 (0)1 40 62 57 08 Alexandra Rocca + 33 (0)1 40 62 50 93 Ludmilla Binet + 33 (0)1 40 62 57 37 Annie Fournier + 33 (0)1 40 62 51 31 Muriel Légeron + 33 (0)1 40 62 50 18 Joseph Marczely + 1 610 263