Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — Q1 2023 Earnings Presentation
27 slides from Air Liquide Sa's earnings presentation, Apr 27, 2023
Slide 1: Q1 2023 Activity: Strong Execution and Sales Growth, High Investment Backlog
Q1 2023 Activity Strong Execution and Sales Growth High Investment Backlog François Jackow, Chief Executive Officer Jérôme Pelletan, Chief Financial Officer Mike Graff, Executive Vice President Paris, April 27, 2023 Air Liquide plant at Secunda, South Africa Picture : BEN_BERGH; CAPA PICTURES 1 Q1 2023
Slide 2: Pursued Focus on Performance; Further Developments in Energy Transition
01 Pursued Focus on Performance Further Developments in Energy Transition François Jackow - Chief Executive Officer 2 THIS DOCUMENT IS PUBLIC Q1 2023 Activity - April 27, 2023
Slide 3: Pursued Focus on Performance
Pursued Focus on Performance Comparable IM Investment Cash Flow(1) Sales growth Pricing Backlog + % 6 + 13% 12% + € 3.5 bn (1) Cash Flow from Operations before changes in WCR, excluding FX impact and one exceptional item related to an indemnity payment received in Q1 23 3 THIS DOCUMENT IS PUBLIC Q1
Slide 4: Further Developments in Energy Transition in Q1 23
Further Developments in Energy Transition in Q1 23 Decarbonization Hydrogen Supporting our Low-C H2 Of our own assets H2 mobility customers production Electrification New PPAs(1) Oxycombustion NH3 cracking JV with of 2 ASUs industrial pilot -370 kt/y -850 kt/y -18% No direct 100 HRS(2) for CO2 emissi
Slide 5: Strong Sales Growth, High Investment Backlog
02 Strong Sales Growth High Investment Backlog Jérôme Pelletan - Chief Financial Officer 5 THIS DOCUMENT IS PUBLIC Q1 2023 Activity - April 27, 2023
Slide 6: Strong Comparable Sales Growth
Strong Comparable Sales Growth Sales in €m Q1 22 Q1 23 Q1 23/22 Q1 23/22 As published Comparable Gas & Services 6,590 6,893 +4.6% +6.7% Engineering & 108 87 -19.0% -18.6% Construction Global Markets & 189 194 +2.4% +2.8% Technologies Group Total 6,887 7,174 +4.2% +6.2% (1) Impacts on Q1 Group Sales:
Slide 7: Continued IM and EL Growth, Accelerating HC
Continued IM and EL Growth, Accelerating HC Q1 2023 Gas & Services comparable sales growth by Activities Europe +15% +6 % Asia-Pacific +5 % +10% Americas +9 % Middle-East +8% Africa +5 % -4% Group Comparable sales growth +6 % 7 THIS DOCUMENT IS PUBLIC Q1 2023 Activity - April 27, 2023
Slide 8: Q1 – Continued Strength in Americas, Europe Back to Robust Growth
Q1 – Continued Strength in Americas, Europe Back to Robust Growth Americas IM and HC driving growth ● LI ▪ Sequential increase of O2 volumes on U.S.G.C.(1) FY 23: ▪ Customer turnarounds in Mexico and in H U.S. FY 22: +10.2% 2 Sales ▪ +10% pricing ● IM ▪ Volumes back to positive >+3% Q1 2023 €2,629m
Slide 9: Q1 – Robust Growth in Asia and AMEI
Q1 – Robust Growth in Asia and AMEI Asia EL and IM driving growth ▪ Low activity, customer turnarounds FY 22: +7.0% FY 23: ● LI ▪ One extended customer stoppage in China Sales ▪ Increased pricing to +10% Q1 2023 ● IM ▪ Volumes upturn in China in March €1,385m ▪ >+10% growth in CG, E&I & ESM(1) ● EL
Slide 10: Q1 – Continued Strong Growth in IM, Improving Demand in LI
Q1 – Continued Strong Growth in IM, Improving Demand in LI Industrial Merchant Large Industries Positive volumes, sustained high pricing Recovery from low Europe in H2 22 Sales Sales FY 23: FY 23: Q1 2023 Q1 2023 FY 22: +14.2% FY 22: -6.6% €3,038m €2,202m ● Sequential volume increase in Europe in a
Slide 11: Q1 – High Growth in Electronics, Accelerating Healthcare
Q1 – High Growth in Electronics, Accelerating Healthcare Electronics Healthcare +10% growth on top of high Q1 22 Growth well balanced between HHC & Medical gases FY 22: +16.4% FY 23: FY 22: +3.6% FY 23: Sales Sales Q1 2023 Q1 2023 €637m €1,016m ● +16% in Carrier Gases, from ramp-ups mainly in China
Slide 12: Pursued Actions to Improve Performance
Pursued Actions to Improve Performance IM Pricing Efficiencies Portfolio Management +12.9% 1 divestiture +10.7% €91m 2 acquisitions €400m 2018 2019 2020 2021 2022 Q1 2023 Sustainability ▪ Continued focus on price ▪ +18% vs Q1 2022 ▪ Scope 3 emissions objective management ▪ Rebound of industrial efficien
Slide 13: Sustained High IM Pricing
Sustained High IM Pricing FY 22 Pricing context Americas +13.4% ▪ Inflationary environment ▪ Smart pricing Europe +23.6% management ▪ Supply shortage in several Asia-Pacific +6.8% molecules Middle-East & Africa +6.4% Bulk specificities ▪ Time lag effect Total ▪ Energy indexation: mix of Industrial Merc
Slide 14: High Backlog
High Backlog Investment Opportunities(1) Investment Decisions(1) Investment Backlog(2) (3) Financial Industrial High and growing opportunities: Balanced projects signing: High Backlog: ▪ >40% in Energy Transition, mostly ▪ LI: 1 new & more efficient ASU ▪ Well balanced between LI and EL Europe, but al
Slide 15: Solid Sales Contribution from New Projects in Q1 23
Solid Sales Contribution from New Projects in Q1 23 Start-up/Ramp-up Start-up date of major projects Sales Contribution(1) 2023 Q1 Q1 Q2 Q2 Q3 H2 Q4 Q1 2023 €66m US Asia, US Asia, US, Europe (1) Europe US US, Europe €300 FY 2023 - US, Asia Guidance 330m Large Industries Electronics GM&T (1) At const
Slide 16: Confirmed 2023 Guidance
Confirmed 2023 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) (1) Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant transact
Slide 17: Appendix
03 Appendix 17 THIS DOCUMENT IS PUBLIC Q1 2023 Activity - April 27, 2023
Slide 18: Q1 2023 - Beneficial Mix of Geographies and Activities
Q1 2023 - Beneficial Mix of Geographies and Activities Q1 2023 Gas & Services Revenue €6,893m 1% Engineering & Construction Global Markets & Technologies 3% 9% Electronics Europe Asia-Pacific Large Industries 31% Americas €2.6bn Africa €1.4bn €2.6bn Middle-East €7,174m 14% Healthcare Q1 2023 Group €0.
Slide 19: Main Components of Gas & Services Sales Growth
Main Components of Gas & Services Sales Growth +12.6% +5.9% Base business 2020 2021 2022 2023 Start-ups, Ramp-ups, Site takeovers Base business Significant M&A 19 THIS DOCUMENT IS PUBLIC Q1 2023 Activity - April 27, 2023
Slide 20: Q1 2023 - Sales by Geographies
Q1 2023 - Sales by Geographies Americas Europe Asia 4% 2% 10% 26% IM 31% 33% 28% Q1 23 LI sales split HC 18% €2,629m €2,639m €1,385m EL 68% 4% 35% 41% +9.2% +5.5% +4.8% Q1 23/22 Comparable Sales Growth 20 THIS DOCUMENT IS PUBLIC Q1 2023 Activity - April 27, 2023
Slide 21: Q1 2023 - Strong Order Intake in E&C and GM&T
Q1 2023- Strong Order Intake in E&C and GM&T Engineering & Construction Global Markets & Technologies FY 22 : +20.6% FY 22 : +20.6% FY 22: +25.8% FY 22: +25.8% Sales €189m Sales Q1 2023 Q1 2023 €87m €194m Total Sales(1) Organic sales growth Comparable sales growth in Q1 23 -10% Comparable sales grow
Slide 22: High Backlog at €3.5bn
High Backlog at €3.5bn Decisions Start-ups €1.3bn Yearly Sales Backlog after full Ramp-ups See definitions in appendix 22 THIS DOCUMENT IS PUBLIC Q1 2023 Activity - April 27, 2023
Slide 23: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue in €m Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 €/USD +141 +271 +373 +274 +121 €/ARS (5) (4) (7) (62) (40) €/EGP (1) (5) (8) (18) (31) €/JP¥ (5) (10) (16) (23) (20) €/Rmb +52 +59 +62 +6 (19) €/ZAR +4 +2 +1 (1) (14) €/SGD +10 +18 +24 +18 +11 €/TRY (13) (13) (10) (23)
Slide 24: 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 25: Regular and Sustained Performance
Regular and Sustained performance CAGR over 30 years(1) Revenue (in €m) EPS (2) (in €) +6.5% +6.8% Cash Flow (in €m) Dividend (2) (in € per share) +7.2% +8.4% (1) Calculated according to prevailing accounting rules over 30 years (2) Based on current year results and proposed for payment the followin
Slide 26: For further information
For further information Upcoming events Annual General Meeting: May 3, 2023 First Half Year Revenue and Results: July 27, 2023 Investor Relations www.airliquide.com IRTeam@airliquide.com Follow us on Twitter @AirLiquideGroup Corporate Headquarters: Phone: +33 (0)1 40 62 51 50 75, Quai d’Orsay 75321
Slide 27: 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