Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — L'Air Liquide Ord — H1 2024 Earnings Presentation
42 slides from Air Liquide Sa's earnings presentation, Jul 26, 2024
Slide 1: H1 2024 Results
H1 2024 Results François Jackow, Chief Executive Officer Jérôme Pelletan, Chief Financial Officer Pascal Vinet, Executive Vice President Adam Peters, Vice President Paris, July 26, 2024 1 H1 2024 Results - July 26, 2024
Slide 2: Gaining Momentum
Gaining Momentum François Jackow - Chief Executive Officer 2 THIS DOCUMENT IS PUBLIC H1 2024 Results - July 26, 2024
Slide 3: Gaining Momentum
Gaining Momentum Resilient sales Strong financial performance Confirmation of investment potential Sustained commitment to performance 3 THIS DOCUMENT IS PUBLIC H1 2024 Results - July 26, 2024
Slide 4: H1 2024: Strong Execution Delivering High Performance
H1 2024: Strong Execution Delivering High Performance Resilience Strong Performance Building the future Comparable Group OIR Recurring Investment Sales growth margin(2) ROCE(3) Backlog + % 3 (1) + 100 10.7% >€4bn bps In line with CO2 trajectory (1) Including +2% contribution from Argentina (2) Opera
Slide 5: H1 2024: Confirmation of Investment Potential
H1 2024: Confirmation of Investment Potential xx Baytown low-C Ultra pure Carrier D’Artagnan oxygen platform Gases solution CO2 hub $850m >$250m >€400m capex capex capex Growth, renewal, efficiency mid size projects >80% of H1 2024 decisions 5 THIS DOCUMENT IS PUBLIC H1 2024 Results - July 26, 2024
Slide 6: H1 2024: Structural Group Transformation to Boost Performance
H1 2024: Structural Group Transformation to Boost Performance Simplified Foster agility, accelerate decision making organization and increase efficiency Single worldwide Optimize industrial processes ensuring highest Industrial Direction standards of safety, quality & reliability Global IT, Procurement
Slide 7: Further Progress in Sustainability in H1 2024
Further Progress in Sustainability in H1 2024 Decarbonization achievements Reducing Air Liquide emissions Supporting customers’ decarbonization 1. Asset 2. Carbon Capture Management Usage / Storage -7 m tons/y of CO2 emissions(2) ⅓ ⅓ ▪ Modernization/ ▪ Decarbonization of the Baytown, US 3 electrifica
Slide 8: H1 2024 Key Takeaways
H1 2024 Key Takeaways Active deployment of ADVANCE strategic plan ▪ Resilient sales growth ▪ Delivering a significant +100bps OIR margin ▪ Successful development of major projects ▪ Ongoing structural efficiency projects 8 THIS DOCUMENT IS PUBLIC H1 2024 Results - July 26, 2024
Slide 9: Accelerating to Deliver Key Milestones
Accelerating to Deliver Key Milestones 2024 guidance Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates.(1) Enhanced 2025 objectives (1) Operating margin excluding energy passthrough impact. Recurring
Slide 10: Strong Execution, Significant Margin Improvement
Strong Execution Significant Margin Improvement Jérôme Pelletan - Chief Financial Officer 10 THIS DOCUMENT IS PUBLIC H1 2024 Results - July 26, 2024
Slide 11: Resilient Comparable Sales Growth
Resilient Comparable Sales Growth Sales in €m H1 23 H1 24 H1 24/23 H1 24/23 Q2 24/23 As published Comparable Comparable (1) Gas & Services 13,405 12,796 -4.5% +2.6% +3.4% Engineering & 180 197 +9.3% +9.9% +13.1% Construction Global Markets & 395 386 -2.3% -2.0% -8.5% Technologies (1) Group Total 13,
Slide 12: Q2 - Continued Strength in Americas, Soft Industrial Demand in Europe
Q2 - Continued Strength in Americas, Soft Industrial Demand in Europe Americas All activities contributing to growth ▪ 1 major ASU start-up in Q1, improved H2 base volumes ● LI ▪ Customer turnarounds in LATAM FY 23: +5.1% FY 24: +10% ▪ Increased +8.1% pricing Sales ● IM ▪ Resilient gas volumes Q2 20
Slide 13: Q2 – Soft Asia, Continued Growth in AMEI
Q2 – Soft Asia, Continued Growth in AMEI Asia Growth in EL, start-up in LI offsetting low activity ▪ Major start-up in China in March FY 24: ● LI ▪ Low activity, customer turnarounds in China FY 23: +1.8% Sales ▪ -1.1% pricing, impacted by Helium Q2 2024 ● IM ▪ PG (1) volumes strongly up in China €1
Slide 14: Q2 – Continued Growth in IM, Resilient LI
Q2 – Continued Growth in IM, Resilient LI Industrial Merchant Large Industries Higher growth from sequential increase of pricing Stable at low level Sales FY 24: Sales FY 23: +8.5% FY 23: -1.8% Q2 2024 Q2 2024 €3,024m €1,721m ● +4.7% pricing on top of +8.6% in Q2 23 ● Contribution from 2 Start-ups i
Slide 15: Q2 – Electronics Back to Positive, Continued Momentum in Healthcare
Q2 – Electronics Back to Positive, Continued Momentum in Healthcare Electronics Healthcare (1) E&I and AM largest growth contributors in Q2 Pursued balanced growth between HHC & Medical gases FY 24: Sales FY 24: Sales FY 23: +2.4% FY 23: +8.4% Q2 2024 Q2 2024 €623m €1,070m ● Solid contribution from
Slide 16: Delivering a Significant +100bps OIR Margin Improvement
Delivering a Significant +100bps OIR Margin Improvement H1 24/23 H1 24/23 In €m H1 23 H1 24 As published Comparable Revenue 13,980 13,379 -4.3% +2.6% Purchases (5,737) (4,975) -13.3% Personnel Expenses (2,546) (2,599) +2.1% Other net income and expenses (1,987) (1,977) -0.5% Operating profit before de
Slide 17: Focused on Execution
Focused on Execution IM Pricing Efficiencies Portfolio Management YTD +4.2% €233m +8.4% +13% YoY 9 acquisitions H1 23 +14.7% ■ 2 in USA ■ 4 in China ■ 1 in Canada ■ 1 in Italy +3.6% ■ 1 in Austria €400m 2021 2022 2023 2024 H1 Cumulative IM pricing effect base 100 Year 2020 3 divestitures ▪ High but mo
Slide 18: Continued Active Management of IM Pricing in Q2
Continued Active Management of IM Pricing in Q2 Sequential increase of IM pricing Continued accretive margin Total vs. +3.7% in Q1 contribution Industrial Merchant Value-added offers & service quality ina focus to customers as ent Airg Arg Americas +4.0% +3.5% Europe In Europe Pricing from Asia-Paci
Slide 19: Recurring Net Profit Growth
Recurring Net Profit Growth H1 24/23 H1 24/23 H1 24/23 In €m H1 23 H1 24 Excl. FX As published Excl. FX & Argentina Operating income recurring 2,481 2,601 +4.9% +6.2% +10.6% Other non-recurring operating income & expenses 33 (87) Operating income 2,514 2,514 Net financial costs and other net financial
Slide 20: Strong 24% Cash Flow on Sales
Strong 24% Cash Flow on Sales 24% Cash Flow/ <10,550> Sales <1,922> <138> <150> <10,156> <9,221> +3,155 <1,634> +64 Gearing(3) 39.2% <310> Gearing Gearing(3) 36.8% 35.2% Net Debt Net Debt Cash Flow WCR + Other Net Industrial Net Financial Dividends(2) Lease liabilities Currency & Net Debt 30 June 20
Slide 21: Increasing ROCE to 10.7%
Increasing ROCE to 10.7% Recurring ROCE after tax(1) (2) 10.7% 11.0% 10.0% 9.0% 8.0% 7.0% Airgas acquisition (1) Recurring ROCE based on Recurring Net Profit (2) No impact from Argentina 21 THIS DOCUMENT IS PUBLIC H1 2024 Results - July 26, 2024
Slide 22: High Investment Backlog >€4bn, Record Level of Opportunities
High Investment Backlog >€4bn, Record Level of Opportunities 12-months investment Investment Decisions(1) Investment Backlog(1) Opportunities(1) € 4.0 € 1.6 € 4.1 bn bn bn H1 2024 H1 2024 H1 2024 Record level of opportunities: Diversity of projects: Stable at high level: ▪ Well balanced between: ▪ E
Slide 23: Start-up / Ramp-up Contribution to Sales
Start-up / Ramp-up Contribution to Sales Start-up date of major projects Sales Contribution(1) 2024 Q1 Q1 Q2 Q2 Q3 H2 Q4 H1 2024 €108m Asia, Asia Americas (1) Americas Americas, FY 2024 €230 AMEI Asia Asia Outlook - 250m Europe, Americas Americas, Asia FY 2025 Large Industries Electronics GM&T estim
Slide 24: Accelerating to Deliver Key Milestones
Accelerating to Deliver Key Milestones 2024 guidance Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates.(1) Enhanced 2025 objectives (1) Operating margin excluding energy passthrough impact. Recurring
Slide 25: Official Supporter of the Olympic & Paralympic Games Paris 2024
Official Supporter of the Olympic & Paralympic Games Paris 2024 25 THIS DOCUMENT IS PUBLIC H1 2024 Results - July 26, 2024
Slide 26: Appendix
Appendix 26 THIS DOCUMENT IS PUBLIC H1 2024 Results - July 26, 2024
Slide 27: H1 2024 - Beneficial Mix of Geographies and Activities
H1 2024 - Beneficial Mix of Geographies and Activities H1 2024 Gas & Services Revenue €12,796m 3% Global Markets & Technologies Engineering & Construction 1% 9% Electronics Europe Asia-Pacific 45% Industrial Americas Merchant €4.5bn Africa €2.6bn €5.2bn 16% Healthcare Middle-East €13,379m €0.6bn H1 20
Slide 28: Q2 Sales and H1 2024 OIR by Geographies
Q2 Sales and H1 2024 OIR by Geographies Americas Europe Asia 5% 2% 11% IM 33% 33% 34% 28% LI Q2 sales €2,625m €2,225m €1,302m 14% split HC 70% EL 32% 4% 34% +9.5% -1.0% -0.7% incl. +6.2% from Argentina(1) Q2 24/23 +2% +4% Comparable +4% Sales Growth Growth as Comparable Growth as Comparable Growth a
Slide 29: Summary of Argentina Impacts
Summary of Argentina Impacts H1 24/23 H1 24/23 Growth in % Energy impact FX impact As published Comparable Argentina Excl. Argentina Excl. Argentina Excl. Group Group Group Group impact Argentina impact Argentina impact Argentina Revenue -4.3% -3.5% +0.4% -3.9% -3.4% -2.3% -1.1% +2.6% +2.1% +0.5% Op
Slide 30: Consolidated P&L
Consolidated P&L In €m H1 23 H1 24 Revenue 13,980 13,379 Operating costs (10,270) (9,551) Operating profit before depreciation 3,710 3,828 Depreciation and amortization (1,229) (1,227) Operating income recurring 2,481 2,601 Other non-recurring operating income & expenses 33 (87) Operating income 2,51
Slide 31: Consolidated Balance Sheet Simplified
Consolidated Balance Sheet Simplified In €m ASSETS 31/12/2023 30/06/2024 EQUITY AND LIABILITIES 31/12/2023 30/06/2024 Goodwill 14,194 14,447 Shareholders' equity 24,321 24,697 Fixed assets 25,284 26,179 Minority interests 722 716 Other non-current assets * 1,137 1,201 Total equity 25,043 25,413 Total
Slide 32: Cash Flow Statement
Cash Flow Statement in €m H1 23 H1 24 Funds provided by operations 3,211 3,155 Changes in Working Capital (299) (282) Other cash items 48 (28) Net cash from operating activities 2,960 2,845 Purchases of PPE* and intangible assets (1,714) (1,656) Purchases of financial assets (32) (43) Proceeds from s
Slide 33: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue in €m Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 €/ARS (40) (62) (97) (182) (153) (161) €/Rmb (18) (51) (83) (42) (36) (12) €/USD +102 (50) (177) (121) (27) +26 €/JP¥ (20) (17) (26) (21) (27) (23) €/TRY (5) (13) (9) (7) (12) (1) €/ZAR (14) (31) (29) (14) (10) +1
Slide 34: Financing Structure as of June 30, 2024
Financing Structure as of June 30, 2024 Fixed / Variable rates Sources Maturity (gross debt) Private placements Commercial 7% €m Fixed paper rate 12,000 15% 81%(2) > 5 years 8,000 Bank debt 13% Between 1 and 5 years 4,000 Others(1) 1% < 1 year Bonds 0 Variable 64% Market debt rate 86% 19% (1) Others
Slide 35: Supporting ExxonMobil Low-Carbon H2 Project…
Supporting ExxonMobil Low-Carbon H2 Project… 1/4 Low-carbon NH3 $850m low-carbon O2 platform production for export CO2 O2 sequestration LMA LMA 9,000 t/d CO2 H2 H2 capture N2 ATR ATR Low-C electricity LMA LMA 6,500 t/d Low-C H2 Low-C H2 900 kt/y Argon, Kr, Xe Ethylene Low-C NH3 plant. Refinery. crack
Slide 36: A Game Changing Project
A Game Changing Project 2/4 ▪ Supporting ExxonMobil first low-carbon H2 project: -7m tons/year of CO2 emissions ▪ +50% of Air Liquide O2 capacity in the USGC(1) ▪ - 2/3 of CO2 footprint per ton of O2 ▪ #1 source of Argon ▪ Strategic source of Kr, Xe ▪ Access for customers to the largest source of low
Slide 37: Air Liquide's Key Success Factors
Air Liquide’s Key Success Factors 3/4 Innovative technology #1 Industrial Merchant ■ -25% energy ■ Argon & Rare gases ■ Modular design distribution capabilities Extensive H2 pipelines Customer focus ■ >500 kms ■ Long term ■ Oversized by design ■ Partnership 37 THIS DOCUMENT IS PUBLIC H1 2024 Results
Slide 38: Partnering with ExxonMobil to Support Decarbonization of Industry
Partnering with ExxonMobil to Support Decarbonization of Industry 4/4 Potentially largest Air Liquide’s investment Leading the way on U.S. Gulf Coast decarbonization Illustration of Air Liquide’s leadership in Energy Transition 38 THIS DOCUMENT IS PUBLIC H1 2024 Results - July 26, 2024
Slide 39: 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 replaceme
Slide 40: Regular and Sustained Performance
Regular and Sustained performance CAGR over 30 years(1) Revenue (in €m) EPS (2) (in €) +6.1% +7.2% Cash Flow (in €m) Dividend Per Share(2) (in €) +7.2% +8.7% (1) Calculated according to prevailing accounting rules over 30 years (2) Based on current year results and proposed for payment the following
Slide 41: For further information, please contact:
For further information, please contact: Upcoming events 2024 Third Quarter Revenue: October 23, 2024 Investor Relations www.airliquide.com IRTeam@airliquide.com Follow us Linkedin Corporate Headquarters: 75, Quai d’Orsay 75321 Paris Cedex 07 Tel : +33 (0)1 40 62 55 55 Communication RCS Paris 552 09
Slide 42: Disclaimer
Disclaimer This presentation may contain forward-looking statements (including objectives and trends) about Air Liquide’s financial situation, operating results, business activities and strategy. Although Air Liquide believes that the expectation reflected in such forward-looking statements are reason