Air Liquide SA · EURONEXT:AI
Air Liquide SA — Q1 2012 Earnings Presentation
33 slides from Air Liquide SA's earnings presentation, June 2012
Slide 1: Investor presentation: Q1 2012 activity & growth story
Investor presentation Q1 2012 activity & growth story June, 2012 2012 Q1 activity Key messages Sequential activity improvement Operational indicators in line Maintained investment cycle 2 June 2012 Air Liquide, world leader in gases for industry, health and the environment 1
Slide 2: 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 3: Driven by developing economies; sequential improvement in all zones
…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 4: Industrial Merchant and Large Industries; Europe in Q1
…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 5: Americas and Asia 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 6: Solid activity in Engineering and Construction; operational indicators in line
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 7: Growth drivers & ALMA 2015 objectives
Growth drivers & ALMA 2015 objectives Growth drivers ALMA 2015 objectives 13 June 2012 Air Liquide, world leader in gases for industry, health and the environment 5 growth drivers Environment High Developing Health Technologies Economies Energy “ $38 trillion of “ Spending on “ Non-OECD “ Chronic in
Slide 8: Energy & Environment and developing economies growth drivers
Energy & Environment growth drivers Estimated market +9% CAGR growth 2010-2015 AL activities concerned: Large Industries Indus. O2 / N 2 HyCO E&C Merchant ■ Growing energy demand ■ Energy efficiency to reduce industrial emissions (oxycombustion, assets renewals) ■ Clean/alternative energy (solar, H2
Slide 9: High technologies and Healthcare growth drivers
High technologies growth drivers Estimated market growth 2010-2015 +10% CAGR AL Electronics activities concerned Carrier Equipment & ESGs gases Installation Increased demand for high tech products (semi-conductors, flat screens and solar panels) driven by: ■ Mobility ■ Increasing standards of living
Slide 10: 2015 objectives; grow more than the market
2015 objectives Sales growth Efficiency +8 to +10% > € 200 m In a normal environment Per year on average ROCE Engagement in 12 - 13% Responsibility objectives Range in the period 19 June 2012 Air Liquide, world leader in gases for industry, health and the environment Grow more than the market 1 5 Wh
Slide 11: Invest in all business lines; accelerate growth in developing economies
Invest in all Business Lines Capex to be invested over the 2011-2015 period > €12bn Large Industries Industrial Merchant Healthcare Electronics Engineering & Others including €2bn of acquisitions (1) (1) Large Industries take-overs accounted as acquisitions 21 June 2012 Air Liquide, world leader in
Slide 12: Efficiencies and stable ROCE
Efficiencies: €270m in 2011 Group efficiencies In €m 335 Focus 3C* 300 270 280 230 Annual 200 180 Objective: > € 200m €1.3bn in 5 years 100 0 2007 2008 2009 2010 2011 *3C: plan « Cash Cost Capex » 23 June 2012 Air Liquide, world leader in gases for industry, health and the environment ROCE stable Gr
Slide 13: Current trends & growth initiatives
Current trends & Growth initiatives Current trends Maintained investment cycle Growth initiatives 25 June 2012 Air Liquide, world leader in gases for industry, health and the environment Current positive trends Steel EOR IM Healthcare Chemicals LI IM Electronics E&C IM IM Healthcare IM: Industrial M
Slide 14: Global growth estimates; maintained investment momentum
Global economic growth estimates for 2012 Industrial production growth estimates for 2012 in Air Liquide countries < +2% > +6% +2 to +6% Growth estimates excluding inflation. Sources: Rexecode and Air Liquide estimates at December 31, 2011. 27 June 2012 Air Liquide, world leader in gases for industr
Slide 15: Global presence to capture growth
Global presence to capture growth New countries Decisions* 2010 + 2011 Germany Russia Ukraine South Korea United States France Italy Turkey China Japan Qatar Mexico India Taiwan Panama Saudi Arabia Philippines Brazil Singapore Chile South Africa Australia € 4.2 bn investment decisions since 2010 Eng
Slide 16: Extend our markets: site takeovers and further initiatives
Extend our markets: site take overs Air gases Hyco, Syngas Steam and others Site takeovers achieved: 6 Opportunities in the portfolio: 10 Additional yearly sales: €200m 31 June 2012 Air Liquide, world leader in gases for industry, health and the environment Extend our markets: further initiatives Ne
Slide 17: 2012 outlook; FY 2011 financials & strategy reminder
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. 33 June 2012 Air Liquide, world leader in gases for industry, health and the e
Slide 18: Robust 2011 results; G&S margin helped by efficiencies
Robust 2011 results 11/10 11/10 comparable In €m 2011 change change change(1) Group revenue 14,457 +7.2% +6.8% Gas & Service revenue 12,839 +8.0% +7.5% Operating Income recurring 2,409 +7.0% Excl. Nat Gas Operating margin 16.7% +10bps Net profit (Group share) 1,535 +9.4% Dividend per share (2) (in €
Slide 19: 2011 margin by region; net debt
2011 margin by region Publ. Comp. Europe In €m FY 11 (1) growth growth Sales 6,585 +6.2% +4.5% OIR 1,227 +3.7% OIR/Sales 18.6% -50bps -10bps (2) Publ. Comp. Americas In €m FY 11 growth growth (1) Sales 2,859 +4.0% +9.0% OIR 628 +6.4% OIR/Sales 22.0% +50bps +20bps (2) Publ. Comp. Asia-Pacific In €m F
Slide 20: G&S capex by geography; long-term return on investments
Gas & Services capex by geography G&S 2011 Investments(1) G&S Investments(1) / sales €1.8bn 2010 2011 Middle East - Africa Europe 11.4% 11.0% 8% Europe Americas 15.3% 14.8% Asia-Pacific 40% Asia-Pacific 20.0% 17.1% 29% Middle East and 23% Africa 28.7% 46.2% Total 14.7% 14.2% Americas (1) Industrial
Slide 21: Standard plant program; from sustainable development to CSR
Standard plant program deployment 90 Air gas standard plants since 2006 Savings confirmation O2 production ■ -35% capex N2 production ■ -10% opex Liquid production ■ -40% time to market 41 June 2012 Air Liquide, world leader in gases for industry, health and the environment From Sustainable developm
Slide 22: CSR stakeholders; commitment to shareholders
Corporate Social Responsibility towards… Stakeholders Fields of action Shareholders Improve the Environmental footprint Customers & Patients Enhance business practices and governance Employees Innovate relentlessly Communities 43 June 2012 Air Liquide, world leader in gases for industry, health and
Slide 23: Commitment to employees and environmental footprint
Our commitment to Employees Be a great place to develop one’s potential, providing employees with a safe, performing and respectful work environment Lost time accident frequency (1) 250 Number Frequency 5,0 4,5 200 4,0 150 3,5 3,0 100 2,5 2,0 50 1,5 0 1,0 95 96 97 98 99 2000 01 02 03 04 05 06 07 0
Slide 24: Commitment to innovate; new segment in Healthcare
Our commitment to Innovate Innovate relentlessly in order to bring sustainable and cost effective solutions to society, leveraging partnerships with customers, suppliers, academics and communities 47 June 2012 Air Liquide, world leader in gases for industry, health and the environment 2012 Creatio
Slide 25: Seppic, a growing business in Specialty Ingredients
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 26: 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 27: 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 53 June 2012 Air Liquide, world leader in gases for industry, health and the environment Complementary growth initi
Slide 28: Appendix: Air Liquide in brief
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 55 June 2012 Air Liquide, world leader in gases for industry, health and the environment Ap
Slide 29: Air Liquide, the world leader in gases
Air Liquide, The world leader in gases for: Group 2011 sales: €14.5 bn Gas & Services(1) 90% Industry Health Other Engineering & activities(1) Construction 5% 5% The Environment ■ 2011 Net profit: €1.5bn ■ 2011 ROCE: 12.1% (1) Air Liquide 2011 revenue breakdown , after extension of Healthcare scope.
Slide 30: Based on global presence to capture growth
Based on global presence to capture growth Gas & Services Revenue 2011: €13.1bn* Local production 22% Americas for local Europe distribution 52% International 24% Asia development 2% since 1907 Middle-East and Africa Business managed in Europe: €6.8bn* Americas: €2.9bn Asia: €3.1bn 80 countrie
Slide 31: Leader of the industry; a balanced portfolio
Air Liquide, leader of the industry 2011 Revenues (€bn) 2010 G&S Market share Air Liquide 13.1 Air Liquide 22% Linde 11.1 Others 34% Praxair 7.6 Linde Air Products 7.0 19% Air Products 12% Praxair Gas and Services Other activities 13% Fiscal year 2011. Source: Companies Air Liquide 2011 figures are
Slide 32: Investment cycle of a Large Industries contract
Investment cycle of a Large Industries contract Opportunities Commissioning under discussion Signature Construction and revenue 12-month portfolio Investment Start-ups of opportunities decisions Net capex(1) and ramp-ups(2) Investment amount Revenue amount (1) 100 100 100 50 50 50 50 40 30 2011 2010
Slide 33: Investor Relations contacts
For further information, please contact: Investor Relations Virginia Jeanson + 33 (0)1 40 62 57 37 Annie Fournier + 33 (0)1 40 62 57 18 Bastien Maurice + 33 (0)1 40 62 59 38 Martine Fitoussi + 33 (0)1 40 62 51 50 (Coordinator) www.airliquide.com Follow us on Twitter @AirLiquideGroup L’Air Li