Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — Shareholder Meeting (May 2024)
111 slides from Air Liquide Sa's shareholder meeting presentation, May 3, 2024
Slide 1: Annual General Meeting 2024
sets NTE GE INIE UAC MEETING 2024)
Slide 2: Opening
OPENING Kelly Shareholder for 2 years
Slide 3: Opening - Benoît Potier
OPENING Benoît Potier Chairman of the Board of Directors
Slide 4: Top themes from shareholder questions
1 2024 outlook Top 2 Hydrogen activities most popular themes 3 2023 Results 4 Medium-term strategy Shareholders who responded 5 Shareholder Policy
Slide 5: Agenda
Opening of the Meeting Financial and extra-financial performance 2023 Results Strategic overview Agenda Strategy, environmental and societal advances, 2024 outlook Governance Remunerations Statutory Auditors' Reports Exchanges with the audience Vote on resolutions
Slide 6: Financial and Extra-Financial Performance
FINANCIAL AND EXTRA-FINANCIAL PERFORMANCE Moshe Shareholder for 22 years
Slide 7: Financial and Extra-Financial Performance - CFO
FINANCIAL AND EXTRA-FINANCIAL PERFORMANCE Jérôme Pelletan Chief Financial Officer (CFO)
Slide 8: 2023 results
2023 results Strong comparable sales growth (1) New significant increase in operating margin Continued strengthening of our balance sheet Record High Investment Decisions (1) Comparable sales growth: excluding currency, energy and significant scope impacts
Slide 9: Strong comparable growth in Group Sales
Strong comparable growth in Group Sales (1) (1) Evolution Group Sales Comparable growth per semester in 2023 Comparable change(1) +3. 7% Published change 6.2% -7. 8% 29.9 €bn 27.6 €bn 3.8% 3.7% 1.5% 2022 2023 Q1 Q2 Q3 Q4 (1) Comparable sales growth: excluding currency, energy and significant scope i
Slide 10: Gas & Services
By activity Gas & Services +9% -2% Comparable Sales Growth (1) By geography +8% +2% Europe +4% + 5% + 2% +7% 95% Americas Africa Asia-Pacific of Group +4.2% Middle-East Sales Comparable change(1) (1) Comparable sales growth: excluding currency, energy and significant scope impacts
Slide 11: Engineering & Construction
Engineering & Construction (1) Comparable Sales Growth 2% New record level of Group of order -15. 6% Sales intake Comparable change(1) €1.5bn (1) Comparable sales growth: excluding currency, energy and significant scope impacts
Slide 12: Global Markets & Technologies
Global Markets & Technologies (1) Comparable Sales Growth 3% High level of of Group -1% Sales order intake Comparable change(1) €930M (1) Comparable sales growth: excluding currency, energy and significant scope impacts
Slide 13: New significant increase in operating margin
New significant increase in operating margin Operating Operating income margin recurring €5bn 18.4% Much higher than the comparable +11.4% +80pbs sales growth Comparable change (1) excluding energy (1) Comparable sales growth: excluding currency, energy and significant scope impacts
Slide 14: Drivers of operating margin increase
New significant increase in operating margin Dynamic pricing policy €466M efficiencies Active management of business portfolio
Slide 15: Strong Growth Leverage on Net Profit
Strong Growth Leverage on Net Profit 2022 2023 2023/2022 2023/2022 +3.7 % As published Excl. FX comparable (1) Revenue 29,934 27,608 -7.8% -3.6% In €m Operating income recurring 4,862 5,068 +4.2% Other non-recurring operating income & expenses (571) (496) Group Operating income 4,291 4,572 recurring
Slide 16: Strong balance sheet and return on investment
Strong balance sheet Self financing & return €6.4bn +6.6% on investment excluding FX Recurring ROCE after tax(1) in % 10.6% 10% Net debt/ equity capital 36.8% acquisition 41.8 % in 2023 in 2022 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023 (1) Recurring RO
Slide 17: Record High Investment Decisions
€4.3 €3.6 €4.0 bn Investment bn bn Decisions Record High in 2023 financial Investment 2021 2022 2023 industrial Decisions 12-months Investment Opportunities > 40% in energy €3.4bn transition
Slide 18: Doubling the ADVANCE Margin Improvement Ambition
Doubling the ADVANCE Margin Improvement Ambition Acceleration of margin improvement +320 bps X2 over 4 years(1) vs initial ambition in March 2022 (1) Calculated as the sum of yearly OIR margin improvements at the energy price of the previous year; over the period 2022-2025
Slide 19: Extra financial performance
For the Environment Extra financial Performance For Health For All
Slide 20: For the Environment
2023 Results For the Environment -1.8M -4.7% tonnes CO2 emissions reduction of CO2 vs 2022 Reducing our CO2 emissions Reduce by 1/3 CO2 emissions by 2035 +3.7% Comparable(1) Reach carbon neutrality by 2050 sales growth Preserving natural resources Water management plans for priority sites Biodiversi
Slide 21: For Health
For Health Improving the quality of life of patients with chronic diseases 49% 55% at home in mature economies in 2022 in 2023 Patients with personalized care plans 2M Facilitating access to medical oxygen 1. 8M in low- and middle- income people people countries(1) in 2022 in 2023 (1) Through the Ai
Slide 22: Safety
Safety One ambition : zero accident An absolute priority A prerequisite for all our actions
Slide 23: For All
For All Share of women among 31.5% 32% 35% "Managers and Professionals" in 2022 2025 in 2023 target Common basis of care coverage 42% in 2022 78% 100% 2025 in 2023 for all employees target Employees having access to volunteering opportunities to support 43% in 2022 73% 100% 2025 in 2023 local commun
Slide 24: 2024 outlook: confident in margin and net profit growth
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 transactions that have no
Slide 25: Strategic Overview
STRATEGIC Solène Shareholder for 7 years
Slide 26: Strategic Overview - Benoît Potier
STRATEGIC Benoît Potier Chairman of the Board of Directors
Slide 27: Worldwide background, implications, strengths
Worldwide STRATEGIC background The implications for your Group Our strengths
Slide 28: A new worldwide background
Worldwide A NEW background Complex environment but unprecedented opportunities
Slide 29: A world of growth prospects and political stability
A WORLD OF Growth prospects Political stability
Slide 30: A year of elections
A YEAR of elections 49% population called to vote of tensions in geopolitics and geo-economics
Slide 31: European sovereignty
EUROPEAN Sovereignty Cooperation Competitiveness
Slide 32: Requirements: Environmental, Social and Governance
REQUIREMENTS Environmental, Social and Governance A major role Deep convictions
Slide 33: At the forefront
BE At the forefront Anticipation
Slide 34: The implications: geographies and markets
The implications NATURE OF OUR Geographies Markets
Slide 35: Geographies: expansion and conquest strategy
Geographies Expansion and more than conquest strategy 70 countries
Slide 36: Regional densification strategy
Geographies Regional densification strategy Optimization of investments Airgas Chine
Slide 37: 4 key markets
4 key markets
Slide 38: Energy transition
: Sen~arus ~~ @Airliquide « Kynatts ENERGY TRANSIPLON
Slide 39: Health
Key markets HEALTH
Slide 40: Technologies
Key markets TECHNOLOGIES
Slide 41: Infrastructures
Key markets INFRASTRUCTURES
Slide 42: Our strengths: unique
Our strengths UNIQUE Determination Inventiveness Boldness V1
Slide 43: Know-how
KNOW-HOW Cooperate Co-developing solutions
Slide 44: Co-create solutions
CO-CREATE SOLUTIONS Partnerships New business models
Slide 45: Increasing technologies of the extremes
Energy storage Electronics Technologies "of the extremes" INCREASING
Slide 46: Working in
WORKING IN Being a forerunner Mobilizing expertise
Slide 47: Mobility
MOBILITY Solutions for the future
Slide 48: Dividend and shareholders
Dividend €3. 2 Almost per share 800,000 Shareholders 8. 5% 34% Growth Capital
Slide 49: Strategy, Outlook 2024
STRATEGY, OUTLOOK 2024 Edgar Shareholder for 4 years
Slide 50: Strategy, Outlook 2024 - CEO
STRATEGY, OUTLOOK 2024 François Jackow Chief Executive Officer
Slide 51: Highlights 2023 and perspectives 2024
STRATEGY, ADVANCE Highlights 2023 Perspectives 2024 OUTLOOK 2024 Perform for what matters
Slide 52: A very strong year
A VERY STRONG Strength of our model Trust
Slide 53: Thanks to all
Mobilization of our teams Thanks to all for your commitment!
Slide 54: Tangible progress
Tangible progress Renewable hydrogen supply for TotalEnergies' refinery (France) Construction of the largest PEM electrolyzer (France) Co-creation gigafactory with Siemens Energy (Germany) Construction of CO2 capture unit (Netherlands) Strategic partner of 6 out of the 7 Hydrogen hubs (United States
Slide 55: Create value, invent solutions
Create value Invent solutions with our customers
Slide 56: Electronics market
Electronics market Dazzling growth Artificial Intelligence United States Securing supply Taiwan, in semiconductors Japan, China and South Korea A global challenge of sovereignty
Slide 57: Decarbonization
DECARBONIZATION Reducing Inflection Our CO2 emissions -5% Decorrelation between growth and CO2
Slide 58: Supporting our customers
Supporting our customers towards carbon neutrality A portfolio of innovative solutions Being a leader in climate solutions Address new markets
Slide 59: Progress via technology
PROGRESS VIA TECHNOLOGY Invent Industrial Merchant new solutions Electronics DNA Healthcare of our Group
Slide 60: Our ESG strategy
FOR ALL Our ESG* strategy Conducting our operations responsibly *Environment, Social and Governance
Slide 61: For All
FOR ALL Taking care Being committed Employees Air Liquide & partners Foundation Support 15 Our years Communities
Slide 62: Our shareholders
OUR SHAREHOLDERS Creating value Meeting your expectations Being recognized for the quality of our relations
Slide 63: Halfway through ADVANCE
Halfway through ADVANCE Confidence in achieving our objectives Margin Acceleration X2 of our ambition by 2025
Slide 64: Ready to face uncertainty
READY TO FACE Managing uncertainty A clear Seizing opportunities strategy
Slide 65: Growth drivers and accelerating levers
GROWTH 2 growth 2 accelerating drivers levers Industrial Merchant Energy transition Healthcare Electronics
Slide 66: Responsibility
RESPONSABILITY Establish a strategy Clear and ESG objectives Measurable Ambitious
Slide 67: Environment
ENVIRONMENT Reduce our CO2 emissions -1/3 by 2035 Confirm this dynamic
Slide 68: Society
SOCIETY Deploying a civic-minded, responsible vision Changes in the world Employee support Necessary transition
Slide 69: Governance
GOVERNANCE Discipline Transparency Trust
Slide 70: Performing
PERFORMING Acting with impact Contributing to progress For the benefit of our teams and customers, patients, Shareholders and society
Slide 71: Official Supporter in Hydrogen of Paris 2024
Official Supporter in Hydrogen of Paris 2024 Partnership In line with our convictions Useful for society Unlocking Hydrogen expertise progress Low-carbon mobility
Slide 72: Support of para-athletes and athletes
Support of 6 para-athletes and athletes
Slide 73: Governance
GOVERNANCE Pierre et Chantal Shareholders for 20 years
Slide 74: Governance - Benoît Potier
GOVERNANCE Benoît Potier Chairman of the Board of Directors
Slide 75: Proposal for renewal of terms of office
Proposal for the renewal of terms of office Board of Directors Kim Monica Ann Mink De Virgiliis Resolutions 5& 6
Slide 76: Board of Directors
Board of Directors at the end of this Annual General Meeting 5 members of foreign nationality 10 Independent Directors 83%* 14 Members 6 Women 42%* 2 Directors representing the employees * This ratio is calculated on the basis of the number of Directors appointed by the Annual General Meeting
Slide 77: Board of Directors
Governance Board of Directors
Slide 78: Composition of the Committees
Composition of the 4 Committees Committees of the Board of Directors at the end of this Annual General Meeting The Audit and The Appointments and The Remuneration The Environment Accounts Committee Governance Committee Committee and Society Committee Catherine Xavier Xavier Annette Guillouard Huilla
Slide 79: Remunerations
REMUNERATIONS Jean-Claude Shareholder since 20 years
Slide 80: Remunerations - Remuneration Committee Chairman
REMUNERATIONS Xavier Huillard Chairman of the Remuneration Committee
Slide 81: 6 Resolutions submitted to the vote
8th resolution 6Resolutions submitted 11 th resolution 9th to the vote 12 th resolution resolution 10th 13th Remuneration resolution Remunerations resolution Policy 2023 2024
Slide 82: 2023 Remuneration: François Jackow
2023 Remuneration 8th 2023 U.R.D François Jackow Pages of resolution 192 to 201 Chief Executive Officer Fixed Fixed remuneration 1,471 remuneration €1,100,000 1,100 Variable remuneration Variable remuneration €1,471,067 2023 In thousands of euros, rounded off
Slide 83: 2023 Remuneration: François Jackow objectives
2023 Remuneration 8th 2023 U.R.D François Jackow Pages of resolution 192 to 201 Chief Executive Officer Quantifiable objectives Fixed Increase in the recurring EPS and revenue 1,471 remuneration Achievement: 94.7% of the fixed remuneration 1,100 Variable remuneration Qualitative objectives CSR: very
Slide 84: 2023 Remuneration: long-term performance shares
2023 Remuneration 8th 2023 U.R.D François Jackow Pages of resolution 192 to 201 Chief Executive Officer Long-term 1,649 remuneration (performance shares) Long-term remuneration (performance shares) Fixed €1,649,284 Long-term remuneration subject to 1,471 remuneration performance conditions: ROCE TSR
Slide 85: 2023 Remuneration: Benoît Potier
2023 Remuneration 9th 2023 U.R.D Benoît Potier Page of resolution 202 Chairman of the Board of Directors 800 Fixed remuneration Fixed remuneration €800,000 2023 In thousands of euros, rounded off
Slide 86: 2023 remuneration of corporate officers
Global vote 2023 remuneration 10th 2023 U.R.D Pages on resolution 172 to 191 of corporate officers Comparative Company employees average 32 changes Chief in remuneration and Executive Officer Company employees median 43 performance for 2022/2023(2) : 2023 remuneration sales and net income growth 62
Slide 87: 2023 Remuneration of non-executive Directors
2023 Remuneration of corporate officers Non-executive Directors 10th Application of the policy approved 2023 U.R.D by the AGM on May 3, 2023 Pages resolution 189 to 191
Slide 88: 2024 Remuneration policy resolutions
2024 Remuneration 11 th François Jackow policy resolution Chief Executive Officer 12th Benoît Potier Chairman of the Board of Directors resolution 13th Directors resolution
Slide 89: Remuneration policy of the Executive Officer
2023 U.R.D Remuneration Pages 203 to 206 policy of the Executive Officer Variable remuneration Unchanged criteria Continuity of principles Quantifiable criteria ~ 35% EPS and revenue growth Variable ~ 40% subject to performance Qualitative criteria conditions CSR Long-term ~ 75% Organization / HR ~
Slide 90: Executive Officer long-term remuneration
2023 U.R.D Remuneration Pages 203 to 206 policy Executive Officer Long-term remuneration of the (performance shares) Continuity of principles Unchanged criteria Recurring Return On Reduction of CO2 ~ 25% Capital Employed emissions in absolute (ROCE) value ~ 40% Fixed subject to performance 50% 20% 2
Slide 91: Remuneration policy of François Jackow
Remuneration Fixed remuneration : €1,210,000 policy Variable remuneration (unchanged structure) of François Jackow Target variable remuneration: Chief Executive Officer 120% of the fixed remuneration Maximum variable remuneration: 150% of the fixed remuneration 11th 2023 U.R.D Pages Long-term remune
Slide 92: Pension obligations
Remuneration Pension obligations policy Continuity of existing mechanisms of François Jackow Mandatory company retirement savings plan (PERO) and senior Chief Executive Officer “managers” defined contribution pension plan 11th 2023 U.R.D Pages 206 to 210 Collective pension insurance contract "articl
Slide 93: Commitments relating to termination of duties
Remuneration Commitments relating policy to termination of duties of François Jackow Indemnity relating to termination of duties subject to Chief Executive Officer performance conditions Non-competition 11th 2023 U.R.D Pages 206 to 210 commitment resolution Cumulated amount capped at 24 months of fi
Slide 94: Remuneration policy of Benoît Potier
Remuneration Fixed remuneration (unchanged) : €800,000 policy of Benoît Potier No variable or long-term Chairman of the Board of Directors remuneration 12th 2023 U.R.D Page resolution 210 No remuneration as a Director
Slide 95: Directors' remuneration
A competitive remuneration with international peers Directors’ Remuneration According to the effective participation of each Director Continuity of the policy Preponderance of variable 13th 2023 U.R.D Pages 210 to 211 remuneration resolution Same remuneration for in person or remote meetings
Slide 96: Modification of total annual pay package
Modification of the total annual pay package Directors’ Remuneration €1.3M/year unchanged since 2020 Envelope increased to €1.5M/year: 14th 2023 U.R.D new Board composition and Page evolving regulatory context resolution 211
Slide 97: Statutory Auditors' Reports
STATUTORY Hubert and Etienne Shareholder since 60 years et Shareholder since 8 months
Slide 98: Statutory Auditors' Reports - PwC
STATUTORY Olivier Lotz Statutory Auditor / PwC
Slide 99: Auditors' Reports
Ordinary General Meeting Report on the annual financial statements Report on the consolidated financial statements Special Report on related party agreements Statutory Auditors' Reports Extraordinary General Meeting 3 reports related to Share capital operations (resolutions 17, 19 and 20)
Slide 100: Report on the annual financial statements
Report on the Approval of the annual financial annual financial statements as at and for the year statements ended December 31, 2023 In our opinion, the financial statements give a of L’Air Liquide S.A. true and fair view of the assets and liabilities, and of the financial position of the Company as
Slide 101: Report on the consolidated financial statements
Report Approval of the consolidated on the consolidated financial financial Statements as at and for statements the year ended December 31, 2023 In our opinion, the consolidated financial of Air Liquide Group statements give a true and fair view of the assets and liabilities, and of the financial po
Slide 102: Special report on related party agreements
Agreements already approved by shareholders' meeting Special report on related party Life Insurance contract This agreement relates to M. Benoît Potier. agreements Agreements submitted for approval of the annual 7th U.R.D 2023 Page shareholders' meeting resolution 433 We have not been advised of any
Slide 103: Verification of the non-financial information statement
Verification of the non-financial Nothing has come to our attention that cause us information to believe that the consolidated non-financial statement statement is not prepared in accordance with the applicable regulatory provisions and that for the year the Information, taken as a whole, is not 202
Slide 104: Reports related to share capital operations
17th Share capital reduction resolution Reports related to share capital operations 19th Issue of ordinary shares and other equity securities resolution reserved for employees U.R.D 2023 Pages 434 to 436 We have no matters to report. 20th Issue of ordinary shares and other We will prepare an additio
Slide 105: Exchanges
EXCHANGES Mathilde Shareholder since 11 months
Slide 106: Exchanges - Chairman and CEO
EXCHANGES Benoît Potier Chairman of the Board of Directors François Jackow Chief Financial Officer (CFO)
Slide 107: Annual General Meeting 2024
AN GE INIE FUANIE MEETING 2024)
Slide 108: Vote
VOTE Emmanuel Shareholder since 17 years
Slide 109: Vote - Benoît Potier
VOTE Benoît Potier Chairman of the Board of Directors
Slide 110: Thank you
Thank you The replay of the webcast wiil be available soon on airliquide.com
Slide 111: Annual General Meeting 2024
ae GIE INIE VANE MEETING 2024)