Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — Q1 2012 Earnings Presentation
33 slides from Air Liquide Sa's earnings presentation, Apr 25, 2012
Slide 1: 2012 Q1 Activity
2012 Q1 Activity Paris, April 25, 2012 l Jean-Pierre Duprieu l Executive Vice-President l Fabienne Lecorvaisier l Chief Financial Officer
Slide 2: 2012 Q1 activity
2012 Q1 activity Paris, April 25, 2012 Sequential activity improvement Maintained investment cycle Operational indicators in line Creation of new segment in Healthcare 2 April 25, 2012 2012 Q1 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 3: Group sales growing +6.7%
Group sales growing + 6.7% Q1 2012 Q1 12/11 Q1 12/11 Q4 2011 Sales in €m as published comparable(1) pro forma (2) Gas & Services 3,443 +6.3% +4.0% 3,313 Engineering & Construction 178 +32.7% +31.9% 258 Other Activities 158 -6.7% -7.4% 174 (2) Group Total 3,779 +6.7% +4.5% 3,745 (1) excluding forex,
Slide 4: YoY growth improving despite high comparison basis
YoY growth improving despite high comparison basis G&S comparable growth(1) 2009 2010 2011 2012 11.3% 11.4% 12% 10.7% 11.0% 9.7% 10% 8.3% 7.7% 8% 6% 4.0% 4% 1.9% 2% 0% -2% -4% -4.2% -4.6% -6% -5.1% -5.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (1) excluding forex, natural gas and significant perimete
Slide 5: Activity level remaining strong…
Activity level remaining strong… Quarterly G&S activity indicator(1) base 100, average 2008 2009 2010 2011 2012 115 110 105 100 95 90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (1) comparable revenue (excluding forex, natural gas and significant perimeter impacts), adjusted for the number of days per mo
Slide 6: …driven by developing economies excluding Electronics
…driven by developing economies excluding Electronics Comparable G&S sales growth(1) G&S sales share in (Q1 2012/Q1 2011) developing economies + 36% + 9% +0% 22% 21% + 5%* 19% 16% + 0% 15% + 21% + 15% Advanced economies Developing economies 2008 2009 2010 2011 Q1 2012 + 2% + 11% * Developing Asia at
Slide 7: Sequential improvement in all zones…
Sequential improvement in all zones… 2% Q1 2012 G&S Sales: € 3,443m 51% 24% Q1 2012 Q4 2011 Comparable growth(1) 22% Highlights Europe +1.4% Contrasted situations Better IM pricing +0.0% €1,747m Strong growth in Central and Oriental Europe +10.1% Better US Large Industries and Electronics Am
Slide 8: …and in Industrial Merchant and Large Industries
…and in Industrial Merchant and Large Industries Industrial Merchant Large Industries 10% 20% +17% +17% 8% 15% +11% +4% +4% 5% +3% 10% +7% +2% +2% 3% 5% +2% 0% 0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 37% Q1 37% 2012 Electronics 9% 17% Healthcare +28% 30% 10% +19% +8% +8% 20% 8
Slide 9: Solid activity in Engineering and Construction
Solid activity in Engineering and Construction Third party E&C sales E&C order intake In €m In €m 705 300 1250 258 250 1000 200 178 156 158 750 150 134 500 100 700 50 250 Q1 Q1 Q1 Q1 0 0 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 2009 2010 2011 2012 ■ Good progress on projects in Q1 Third party air gas projects
Slide 10: Current positive trends
Current positive trends Steel EOR IM Healthcare Chemicals LI IM Electronics E&C IM IM Healthcare IM: Industrial Merchant – LI: Large Industries - EOR: Enhanced Oil Recovery 10 April 25, 2012 2012 Q1 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 11: Maintained investment momentum
Maintained investment momentum 12-month portfolio Investment of opportunities decisions Net capex(1) Start-ups(2) In €bn In €bn In €bn 2.2 27 4.2 2.0 1.7 1.7 4.0 24 3.9 1.4 0.9 1.5 15 16 1.5 1.1 0.5 0.5 3.0 2.7 2.5 6 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Dec-10 Dec-11 Mar-12 2009 2010 2011 2012 2009 2010 2011 201
Slide 12: Operational indicators in line
Operational indicators in line G&S sales + 4.0% (1) Group Efficiencies In €bn In €bn 4 335 3.2 3.4 280 300 270 3 2.8 2.5 Annual objective 2012 > 200 M€ 200 2 1 100 59 0 0 Q1 09 Q1 10 Q1 11 Q1 12 2009 2010 2011 2012 Net Capex(2) Net debt In €bn 2 In €bn 1.7 1.7 5.2 5.3 5.0 1,5 1.4 5 4.9 1 4 0.5 0,5 Q
Slide 13: Creation of new segment in Healthcare
2012 Q1 activity Creation of new segment in Healthcare Paris, April 25, 2012 l Jean-Pierre Duprieu l Executive Vice-President 13 April 25, 2012 2012 Q1 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 14: Seppic, a growing business in Specialty Chemicals…
Seppic, a growing business in Specialty Chemicals… Seppic published revenues €M International expansion 2011: Divestitures to focus Major initiatives on healthcare specialties 300 250 200 Ingredients for Health and Personal care New vaccines adjuvants 150 USA, UK, China, Italy 100 Production in
Slide 15: … recognized for its leadership in Specialty Ingredients…
… recognized for its leadership in Specialty Ingredients… …for Health and Personal Care Excipients and actives Adjuvants for vaccines Functional coating products …with strong Innovation 136 patent families 100 researchers … generating revenues(1) of € 225M in 2011 MEA France Asia Americas
Slide 16: Specialty Ingredients joining Healthcare
Specialty Ingredients joining Healthcare Health and Personal care products and services Common growth drivers and development strategy Medical expertise and Regulatory framework Before After With Specialty Ingredients Healthcare share in G&S 2011 revenues 16% 18% Gas & Services share in Group
Slide 17: Healthcare 4 business segments
Healthcare 4 business segments Home Healthcare Medical gases Hygiene Specialty Ingredients + other local brands for: ■ Respiratory ■ Medical gases ■ Disinfectants and ■ Personal care ■ Infusion and nutrition and services antiseptics ■ Vaccines ■ Pharmaceuticals Direct patient Hospital oriented Healt
Slide 18: Extended scope in Healthcare
Extended scope in Healthcare € 2.3 bn 2011 pro forma Specialty ingredients 10% revenue Home Healthcare Hygiene 41% 30 countries 15% > 700,000 patients 34% Medical Gases 9,900 employees 18 April 25, 2012 2012 Q1 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 19: Complementary growth initiatives
Complementary growth initiatives Healthcare revenue growth 2010 / 2011 growth initiatives including Specialty Ingredients in €m 2500 2000 1500 1000 500 Home Healthcare, Medical gases and Hygiene Specialty Ingredients 0 2007 2008 2009 2010 2011 19 April 25, 2012 2012 Q1 Revenue Air Liquide, world
Slide 20: Healthcare common growth drivers
Healthcare common growth drivers Home Medical Specialty Hygiene Healthcare Gases ingredients ■ Ageing population ■ Rising chronic diseases ■ Growing Middle-class in developing economies ■ Higher pandemic risk 20 April 25, 2012 2012 Q1 Revenue Air Liquide, world leader in gases for industry, health a
Slide 21: 2012 outlook
2012 Q1 activity 2012 outlook Paris, April 25, 2012 l Jean-Pierre Duprieu l Executive Vice-President 21 April 25, 2012 2012 Q1 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 22: 2012 Outlook
2012 Outlook Q1 2012 ■ Sequential activity improvement ■ Investment momentum and project activity maintained 2012 objective Barring a major economic downturn, Air Liquide continues to aim for growth in net profit in 2012. 22 April 25, 2012 2012 Q1 Revenue Air Liquide, world leader in gases for indus
Slide 23: Q1 2012 Appendix
Q1 2012 Appendix 23 April 25, 2012 2012 Q1 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 24: Impact of currency and natural gas on G&S revenue
Impact of currency and natural gas on G&S revenue Currency In €m Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 €/USD +7 (59) (43) +5 +18 €/CAD +9 (10) (4) (0) +4 €/JP¥ +31 (3) +3 +21 +21 Others +49 (22) (13) +0 +27 Total currency impact +96 (94) (57) +26 +70 Average currency rate Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 €/USD
Slide 25: Revenue analysis by quarter (1)
Revenue analysis by quarter (1) Sales in €m (1) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 12/11 Q1 12/11 pro forma pro forma pro forma pro forma as published comparable(2) Europe 1,702 1,715 1,674 1,720 1,747 +2.7% +1.4% Americas 709 699 728 722 772 +8.9 % +10.1% Asia-Pacific 759 746 791 787 840 +10.6% +2.7%
Slide 26: Revenue analysis by quarter (2)
Revenue analysis by quarter (2) Sales in €m (1) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 12/11 Q1 12/11 pro forma pro forma pro forma pro forma as published comparable(2) Industrial Merchant 1,200 1,199 1,238 1,256 1,281 +6.8% +4.4% Large Industries 1,133 1,121 1,157 1,174 1,262 +11.4% +7.3% Electronics 343
Slide 27: G&S Revenue growth by quarter (3)
G&S Revenue growth by quarter (3) Growth as Natural Significant Comparable Change published Gas perimeter growth(1) Q4 2010 +18.5% +0.8% +6.4% - +11.3% Q1 2011 +15.4% +0.5% +3.5% - +11.4% Q2 2011 +8.1% +1.6% -3.2% - +9.7% Q3 2011 +5.9% +1.0% -1.9% -0.9% +7.7% Q4 2011 +3.5% +1.5% +0.8% -0.7% +1.9% Q1
Slide 28: Europe in Q1
Europe in Q1 ■ Industrial Merchant Q1 Gas & Services sales: € 1,747m Better pricing in Western Electronics Europe 3% Iberia still difficult Healthcare 27% 31% Industrial Merchant Double digit growth in Developing Europe 39% ■ Large Industries Large Industries Steel demand stabilizing Stron
Slide 29: Americas in Q1
Americas in Q1 ■ Industrial Merchant Q1 Gas & Services sales: € 772m New capacities for EOR(2) in Electronics Canada Healthcare 8% Dynamic Latin America 10% Industrial Merchant 48% ■ Large Industries 34% Strong chemical demand Large Industries Site takeover in Louisiana ■ Healthcare Q1 12/11
Slide 30: Asia in Q1
Asia in Q1 ■ Industrial Merchant Q1 Gas & Services sales: € 840m Japan still difficult Electronics Back to solid growth outside 23% Japan 37% Industrial Merchant Healthcare 5% ■ Large Industries 35% 3 start-ups in China Large Industries Solid demand across the zone Q1 12/11 Comparable change
Slide 31: Growth in Q1 2012 G&S revenue
Growth in Q1 2012 G&S revenue +4.0% in €m comparable (1) 3500 +70 3,443 +130 +22 <19> 3,240 3250 3000 +6.3% published growth 2750 2500 2250 0 2000 Q1 2011 Comparable Natural gas Change Scope Q1 2012 growth (1) (1) excluding forex, natural gas and significant perimeter impacts 31 April 25, 2012 2012
Slide 32: Industrial Merchant pricing
Industrial Merchant pricing Q1 2012 Europe + 1.0% Americas + 4.3% Asia-Pacific + 0.4% Middle-East and Africa + 8.6% Total Industrial Merchant + 2.1% 32 April 25, 2012 2012 Q1 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 33: For further information, please contact
For further information, please contact: Investor Relations Communications Virginia Jeanson + 33 (0)1 40 62 57 37 Anne Lechevranton + 33 (0)1 40 62 50 93 Annie Fournier + 33 (0)1 40 62 57 18 Corinne Estrade-Bordry + 33 (0)1 40 62 51 31 Bastien Maurice + 33 (0)1 40 62 59 38 www.airliquide.c