Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — Shareholder Meeting (May 2021)
115 slides from Air Liquide Sa's shareholder meeting presentation, May 2021
Slide 1: Official Opening
Nancy, Air Liquide shareholder for 23 years & Eliane, Shareholder Services advisor Official Opening Benoît Potier Chairman and CEO
Slide 2: Ordinary General Meeting: Official opening
Ordinary General Meeting Official opening Approval of the company financial statements for the fiscal year ended December 31, 2020 Approval of the consolidated financial statements for the fiscal year ended December 31, 2020 Appropriation of 2020 earnings; setting of the dividend Authorization grant
Slide 3: Extraordinary General Meeting: Official opening
Extraordinary General Meeting Official opening Authorization granted to the Board of Directors for a period of 24 months to reduce the share capital by cancellation of treasury shares Delegation of authority granted to the Board of Directors for a period of 26 months in order to increase the share c
Slide 4: Pre-General Meeting survey
Pre-General Meeting survey TOP 5 Of popular themes The rise of hydrogen 2021 perspectives The impact of the pandemic 2020 Results The medium term strategy
Slide 5: Agenda
Agenda Official opening 2020 Results Strategic Overview Governance Remunerations Statutory Auditors’ Reports Questions & Answers Vote on resolutions
Slide 6: 2020 Results
2020 Results Fabienne Lecorvaisier Executive Vice-President and Chief Financial Officer Céline, Shareholder Services advisor & Quentin, Air Liquide shareholder for 7 years
Slide 7: 2020, an out of the ordinary year
2020, an out of the ordinary year Sales resilience Significant operating margin improvement Net profit growth Very high level of investment decisions
Slide 8: Group sales solid performance
Group sales solid performance Group Sales evolution 2020 quarterly (In € Bn) comparable growth(1) (In %) €22 Bn(1) €20 Bn Comparable Q1 Q2 Q3 Q4 change(1) +2% -1 % Published +1% change -7% -1% 2019 2020 Global industrial production (In %) -5% -7% (1) Sales growth on a comparable basis: excluding cur
Slide 9: Gas & Services sales good resilience
Gas & Services sales good resilience 2020 GAS & 96% SERVICES Comparable change(1) € 20Bn - 1.2% ▪ Healthcare and Electronics ▪ Contrasted depending on the geographies (1) Sales growth on a comparable basis: excluding currency, energy and significant scope impacts
Slide 10: Engineering & Construction: recovery in the 4th quarter
Engineering & Construction: recovery in the 4th quarter 2020 1% € 20 Bn Comparable change(1) - 23% 4th quarter +24% (1) Sales growth on a comparable basis: excluding currency, energy and significant scope impacts
Slide 11: Global Markets & Technologies growth
Global Markets & Technologies growth 2020 3% € 20 Bn Comparable growth(1) 6 + % (1) Sales growth on a comparable basis: excluding currency, energy and significant scope impacts
Slide 12: Significant growth of the operating margin
Significant growth of the operating margin 2020 Operating margin 18.5% + 80 bps Excluding energy Operating Income Recurring € 4 Bn
Slide 13: Significant growth of the operating margin
Significant growth of the operating margin Structural levers Exceptional measures Efficiencies € 441 M Objective of €400 M /year Price Portfolio management
Slide 14: Net profit increase
Net profit increase 2019 2020 2020/2019 In € M Published Published Published Revenue 21,920 20,485 -6.5 % Net profit Operating income recurring 3,794 3,790 -0.1 % 2020/2019 Other non-recurring income and expenses (188) (140) Operating income 3,606 3,650 Published + 8.6% Net finance costs plus other
Slide 15: Solidity and performance
Solidity and performance Cash flow Net debt / equity Return on capital (In %) (In %) employed(1) (In %) Airgas 8.6% 8.6% acquisition 24% of sales 57% 56% 2015 2016 2017 2018 2019 2020 2019 2020 (1) ROCE recently calculated with the operating income recurring excluding IFRS16
Slide 16: Very high level of investment decisions
Very high level of investment decisions Investment decisions in 2020 > €3 Bn 12-month Portfolio of opportunities € 3.1 Bn 44% Energy transition
Slide 17: Sustainability indicators improvement
Sustainability indicators improvement 2020 Data vs 2019 Safety Lost-time accident frequency rate 0.9% vs 1.2% of employees (per million hours worked) Gender diversity Share of women among 30% vs 29% managers and professionals Carbon intensity 4.4 vs 4.6 CO2 emissions (kg) / EBITDA (€)
Slide 18: All activities posting sales growth in First Quarter 2021
All activities posting sales growth in First Quarter 2021 Group Sales Growth(1) Gas & Services Sales Growth(1) in Q1 2021 Q1 2021 Q1 Q2 Q3 Q4 +2% +4% Large Industrial +1% Industrie Merchant +3% +0% -1% Healthcare Electronics +10% +2% -7% (1) Sales growth on a comparable basis: excluding currency, en
Slide 19: Strategic Overview
Marie, Shareholder Services Advisor & Quentin, Air Liquide shareholder for 7 years Strategic Overview Benoît Potier Chairman and CEO
Slide 20: Molecules essential to life, matter and energy
Molecules essential to life, matter and energy
Slide 21: Covid-19
Covid-19 @flirtiquide
Slide 22: AGM21
AGM21 [RNNUALGENETAL MEETING @firliquide
Slide 23: Act today, prepare the future
Act Prepare to perform today the future
Slide 24: Act for the benefit of ALL
Act for the benefit of ALL Learn from our recent past
Slide 25: Strong business model resilience
Strong business model Resilience
Slide 26: Collaboration, customer satisfaction
Collaboration Customer satisfaction
Slide 27: Mobilization
4s C ip = £4 Q Uh " nl i a te " J sf Mobilization oe Re ee al
Slide 28: Prepare the future
Prepare the future
Slide 29: Act for the benefit of ALL
Act for the benefit of ALL To capture the markets of tomorrow and meet our social commitments
Slide 30: Energy and Climate Transition, Health, Technologies
Energy and Climate Health Technologies Transition
Slide 31: Energy and Climate Transition
Energy and Climate Transition
Slide 32: Carbon neutrality by 2050
Carbon neutrality by 2050 33% reduction of emissions by 2035
Slide 33: Hydrogen
Hydrogen 18% of the world’s energy supply by 2050 Source McKinsey report
Slide 34: Hydrogen Council: coalition of CEOs
Created in 2017 A global coalition of more than 100 CEOs
Slide 35: Hydrogen, a concrete and realistic solution
Hydrogen, a concrete and realistic solution
Slide 36: Hydrogen investments and sales by 2035
Investments 8 Bn € by 2035 Hydrogen sales from x3 by 2035 2 to 6 Bn €
Slide 37: Hydrogen for heavy-duty and professional mobility
Hydrogen, for heavy-duty and professional mobility
Slide 38: It's time for Hydrogen!
It's time for Hydrogen! | by Philippe Croizon
Slide 39: Liquid Hydrogen for mobility
Liquid Hydrogen for mobility Future plant in Nevada
Slide 40: Decarbonized Hydrogen
Decarbonized Hydrogen Electrolyzer in Canada
Slide 41: Accompany customers to reduce their carbon footprint
Accompany our customers Reduce their carbon footprint
Slide 42: World's largest oxygen production site
World’s largest oxygen production site
Slide 43: Health
ee iii. CEPELUELEPEREEL BE fo
Slide 44: Hospital
Hospital
Slide 45: Home healthcare
Home healthcare
Slide 46: Facilitate access to medical oxygen
Facilitate access to medical oxygen
Slide 47: Technologies
AGM21 [RNNUALGENETAL MEETING
Slide 48: New generation of semi-conductors
New generation of semi-conductors
Slide 49: Integration of digital in new offers
Integration of digital in new offers
Slide 50: Digital, an optimization lever
Digital, an optimization lever
Slide 51: Deep Technologies
' Deep. oe _ Téchnologies 2
Slide 52: Act for the benefit of ALL
Act for the benefit of ALL A work environment in line with our values and the evolution of society
Slide 53: Our key asset
Our Key asset
Slide 54: 35% women among managers and professionals
35% women among managers and professionals by 2025 Common basis of care coverage for all
Slide 55: Participation in local projects
Participation to local projects
Slide 56: Working remotely
Working remotely
Slide 57: Grow and stay close
Act for the benefit of ALL Grow and Stay close
Slide 58: Proximity
Airliquide
Slide 59: Shareholder personal online account
Shareholder personal online account
Slide 60: 470,000 individual shareholders
470,000 individual shareholders (+50,000 vs 2020) 33% of the capital
Slide 61: Shareholder communication campaign on social media
Shareholder communication campaign on social media
Slide 62: Share performance and shareholding policy
Share performance and shareholding policy Loyalty A dividend(2) bonuses A share that A regular outperforms (1) with an average of 10% yearly distribution (dividends for 1/5/10 growth of dividends and free shares) for shareholders and 20 years of 8.5% and free shares after 2 calendar for 30 years yea
Slide 63: 2.75€/share dividend and free share allotment
1 free +1.9% share for 10 shares held 2.75€/share Allotement considered for June 2022
Slide 64: More than ever, invent and live the future
More than ever, invent and live the future
Slide 65: Governance
Quentin, Air Liquide shareholder for 7 years & Céline, Shareholder Services advisor Governance Benoît Potier Chairman and CEO
Slide 66: Jean-Paul Agon, Lead Director
Jean-Paul Agon Lead Director
Slide 67: Respect of the highest governance standards
Respect of the highest governance standards Jean-Paul Agon Lead Director
Slide 68: Efficient meetings thanks to digital tools
Efficient meetings thanks to digital tools Jean-Paul Agon Lead Director
Slide 69: In-depth session on hydrogen
September 29, 2020 Board meeting In-depth session on hydrogen from the Paris Innovation Campus Jean-Paul Agon Lead Director
Slide 70: Collegiality of the Board's work
Collegiality of the Board’s work Jean-Paul Agon Lead Director
Slide 71: Your Group in 2020
Your Group in 2020 Fighting the pandemic Exceptional agility Ambitious extra-financial objectives Jean-Paul Agon Lead Director
Slide 72: Evolution of the Board of Directors
Evolution of the Board of Directors End of term Thierry PEUGEOT
Slide 73: Evolution of the Board of Directors
Evolution of the Board of Directors Renewal of term New Director representing the employees appointed on October 1st, 2020 by the European Work Council 5 Xavier HUILLARD Fatima TIGHLALINE
Slide 74: Evolution of the Board of Directors
Evolution of the Board of Directors Candidates to the Board 6 7 8 Pierre BREBER Aiman EZZAT Bertrand DUMAZY
Slide 75: Your Board of Directors at the end of this General Meeting
Your Board of Directors at the end of this General Meeting 5 Nationalities 2 15 12 Directors representing Members Independent 92% the employees Directors 6 46%* Women * This ratio is calculated on the basis of Directors appointed by the General Meeting
Slide 76: Remunerations
Eliane, Shareholder Services Advisor & Nancy, Air Liquide shareholder for 23 years Remunerations Xavier Huillard Chair of the Remuneration Committee
Slide 77: Resolutions relating to Remunerations
10 4 Resolutions 11 relating to Remunerations 12 13
Slide 78: Vote on the 2020 remuneration of the Chairman and CEO
Vote on the 2020 remuneration of the Chairman and CEO Pages 87 180 to 1 10 Var. In M € 2020/2019 Fixed 1.325 0% -18% Variable 1.460 -29%
Slide 79: Vote on the 2020 remuneration of the Chairman and CEO
Vote on the 2020 remuneration of the Chairman and CEO Variable remuneration in respect of 2020 Pages 180 to 1 87 10 Quantifiable criteria Criteria fixed in EPS and Sales objectives February 2020 and non not fully achieved due to adjusted despite the the sanitary crisis sanitary crisis Qualitative cr
Slide 80: Vote on the 2020 remuneration of the Chairman and CEO
Vote on the 2020 remuneration of the Chairman and CEO Pages 180 to 1 87 10 Var. In M € 2020/2019 Fixed 1.325 0% Variable 1.460 -29% Long term(1) 2.250 0% (1) Grant of performance shares in 2020 subject to 3-year performance conditions
Slide 81: Global Vote on corporate officers' remuneration
Global Vote on corporate officers’ remuneration Pages 161 to 1 79 11 Chairman and CEO 2020 Remuneration 5-year comparative ratios (1) changes in remunerations and performances (2) Employee average 49 Sales and net income increase higher than the increase of the Employee median 70 executive officer’s
Slide 82: Corporate officers' remuneration policy
Corporate officers’ remuneration policy Chairman and CEO Pages 188 to 1 95 12 Continuity of the Stability of Benoît Potier’s principles total target remuneration Fixed since 2018 Long ~25% term In M € ~40% Fixed ~ 1.325 Variable to the target ~ 1.988 Variable Long term(1) ~ 2.250 ~35% (1) Grant of p
Slide 83: Corporate officers' remuneration policy
Corporate officers’ remuneration policy Chairman and CEO Pages Variable remuneration 95 Unchanged criteria 188 to 1 12 Quantifiable objectives Qualitative objectives § EPS § CSR § Revenue § Organization /HR § Individual performance Aligned on company strategy
Slide 84: Corporate officers' remuneration policy
Corporate officers’ remuneration policy Chairman and CEO Pages Long term remuneration 95 Unchanged criteria 188 to 1 12 Carbon intensity reduction Air Liquide TSR (1) 10% 50% 20% 20% Return on Capital Air Liquide / Employed (ROCE) CAC 40 TSR (1) § Aligned on company strategy § Common to all benefici
Slide 85: Corporate officers' remuneration policy
Corporate officers’ remuneration policy Chairman and CEO Pension Pages 95 188 to 1 12 Collective transfer to a PERO Continuation of the of the defined contribution pension insurance plan applying to all the contract established in employees and the 2020 for Benoît Potier Executive Officers
Slide 86: Non executive Directors' remuneration policy
Non executive Directors’ remuneration policy Page 196 13 A remuneration which Preponderance is competitive of variable remuneration internationally Same remuneration Linked to effective for remote or participation of each Director in-person meetings* Remuneration envelope approved by the 2020 €1.3 U
Slide 87: Statutory Auditors' Reports
Jérémie, Shareholder Services advisor & Carol, Air Liquide shareholder for 5 years Statutory Auditors’ Reports Jeanne Boillet Statutory Auditor, Ernst & Young
Slide 88: Statutory Auditors' Reports
Statutory Auditors’ Reports Ordinary General Meeting ▪ Report on the financial statements of the Parent Company ▪ Report on the consolidated financial statements ▪ Special report on related party agreements Extraordinary General Meeting Jeanne Boillet ▪ 4 reports related to operations on the company
Slide 89: Report on L'Air Liquide S.A. financial statements
Pages 290-292 Report on L’Air Liquide S.A. financial statements 1 Approval of the parent company financial statements for 2020 In our opinion, the financial statements give a true and fair view of the assets and liabilities and of the financial position of the Company as at December 31, 2020 and of
Slide 90: Report on Air Liquide Consolidated financial statements
Pages 273-276 Report on Air Liquide Consolidated financial statements 2 Approval of the consolidated financial statements for 2020 In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of the financial position of the Group as at December 3
Slide 91: Special report on related party agreements
Page 374 Special report on related party agreements 9 Agreements approved during prior fiscal years Life insurance contract This agreement is related to Benoît Potier. Other Agreements We have not been advised of any agreements authorized in the course of the year to be submitted Jeanne Boillet to t
Slide 92: Reports related to operations on the share capital
Pages 375-378 Reports related to operations on the share capital 15 17 14 16 18 Share capital Share capital Capital reduction increase with increase preferential reserved for subscription employees rights No matters to report. We will prepare an additional report if and when the Board of Directors u
Slide 93: Questions & Answers
Carol, Air Liquide shareholder for 5 years & Jérémie, Shareholder Services Advisor Questions & Answers Benoît Potier Chairman and CEO
Slide 94: Interactive services to promote dialogue
Interactive services to promote dialogue Selection of questions submitted BEFOREHAND on the internet from April 22 to May 3 Questions raised LIVE by shareholders via video conference
Slide 95: Beforehand questions collection: top topics
Beforehand questions collection TOP 5 topics Hydrogen Shareholder policy Covid-19 mobilization Strategy Climate
Slide 96: Vote on Resolutions
Céline, Shareholder Services Advisor & Nancy, Air Liquide shareholder for 23 years Vote on Resolutions Benoît Potier Chairman and CEO
Slide 97: Resolution 1 approved
Resolution 1 Ordinary General Meeting Approval of the Company financial statements for the fiscal year ended December 31, 2020 99.47% Resolution approved
Slide 98: Resolution 2 approved
Resolution 2 Ordinary General Meeting Approval of the consolidated financial statements for the fiscal year ended December 31, 2020 99.47% Resolution approved
Slide 99: Resolution 3 approved
Resolution 3 Ordinary General Meeting Appropriation of 2020 earnings; setting of the dividend 99.81% Resolution approved
Slide 100: Resolution 4 approved
Resolution 4 Ordinary General Meeting Authorization granted to the Board of Directors for a period of 18 months to allow the Company to trade in its own shares 97.69% Resolution approved
Slide 101: Resolution 5 approved
Resolution 5 Ordinary General Meeting Renewal of the term of office of Mr Xavier Huillard as Director 98.20% Resolution approved
Slide 102: Resolution 6 approved
Resolution 6 Ordinary General Meeting Appointment of Mr Pierre Breber as Company Director 99.58% Resolution approved
Slide 103: Resolution 7 approved
Resolution 7 Ordinary General Meeting Appointment of Mr Aiman Ezzat as Company Director 99.39% Resolution approved
Slide 104: Resolution 8 approved
Resolution 8 Ordinary General Meeting Appointment of Mr Bertrand Dumazy as Company Director 63.08% Resolution approved
Slide 105: Resolution 9 approved
Resolution 9 Ordinary General Meeting Statutory Auditors’ Special Report on agreements covered by the articles L. 225-38 et seq. of the French Commercial Code 99.97% Resolution approved
Slide 106: Resolution 10 approved
Resolution 10 Ordinary General Meeting Approval of the elements of remuneration paid during or awarded in respect of the fiscal year ended December 31, 2020 to Mr Benoît Potier 91.78% Resolution approved
Slide 107: Resolution 11 approved
Resolution 11 Ordinary General Meeting Approval of information relating to the remuneration of corporate officers stated in article L. 22-10-9 I of the French Commercial Code 92.65% Resolution approved
Slide 108: Resolution 12 approved
Resolution 12 Ordinary General Meeting Approval of the remuneration policy applicable to Executive Officers 91.47% Resolution approved
Slide 109: Resolution 13 approved
Resolution 13 Ordinary General Meeting Approval of the remuneration policy applicable to Directors 99.42% Resolution approved
Slide 110: Resolution 14 approved
Resolution 14 Extraordinary General Meeting Authorization granted to the Board of Directors for a period of 24 months to reduce the share capital by cancellation of treasury shares 99.29% Resolution approved
Slide 111: Resolution 15 approved
Resolution 15 Extraordinary General Meeting Delegation of authority granted to the Board of Directors for a period of 26 months in order to increase the share capital via the issuance of ordinary shares or marketable securities conferring entitlement, immediately and/or in the future, to the Company
Slide 112: Resolution 16 approved
Resolution 16 Extraordinary General Meeting Authorization granted to the Board of Directors for a period of 26 months to increase the issuance amount of equity securities or marketable securities in the event of over-subscription 97.03% Resolution approved
Slide 113: Resolution 17 approved
Resolution 17 Extraordinary General Meeting Delegation of authority granted to the Board of Directors for a period of 26 months to perform share capital increases, with cancellation of preferential subscription rights, reserved for members of a company or Group Savings Plan 99.20% Resolution approve
Slide 114: Resolution 18 approved
Resolution 18 Extraordinary General Meeting Delegation of authority granted to the Board of Directors for a period of 18 months to perform share capital increases, with cancellation of preferential subscription rights, reserved for a category of beneficiaries 99.07% Resolution approved
Slide 115: Resolution 19 approved
Resolution 19 Ordinary General Meeting Powers for formalities 99.97% Resolution approved