Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — Q3 2010 Earnings Presentation
32 slides from Air Liquide Sa's earnings presentation, Oct 26, 2010
Slide 1: 2010 3rd quarter activity
2010 3rd quarter activity Continued Growth and Investment cycle acceleration Pierre DUFOUR, Senior Executive Vice-President Jean-Pierre DUPRIEU, Senior Vice-President October 26, 2010 Fabienne LECORVAISIER, Chief Financial Officer
Slide 2: 2010 3rd quarter: Gas & Services continued growth
2010 3rd quarter Gas & Services continued Growth Solid operating performance Investment cycle acceleration, illustrated notably by the Middle-East developments Air Liquide, the world leader in gases for industry, health and the environment Q3 2010 Revenue – October 26. 2010 2
Slide 3: Gas & Services continued Growth, Solid operating performance
Gas & Services continued Growth Solid operating performance Fabienne LECORVAISIER, Chief Financial Officer
Slide 4: Continued growth
Continued growth Third quarter sales 10/09 change 10/08 change In €m 2010 as published comparable* comparable* Gas & Services 3,043 +21.0% +11.0% +5% Engineering & Construction 186 -34.0% -37.0% -31% Other activities 200 +8.6% +6.5% -14% Group Total 3,429 + 15.1% + 6.2% +1% * Comparable : excluding
Slide 5: Confirmed recovery
Confirmed recovery Gas & Services comparable growth* 2008: +9.1% 2009: -4.8% 9M 2010: +10.0% 15% +11.0% +9.6% +10.7% 10% +8.3% +7.9% 5% 0% -5% -4.2% -5.1% -4.6% -5.2% -10% Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 * Comparable : excluding impact of currency and natural
Slide 6: Return to pre-crisis volumes
Return to pre-crisis volumes Base 100, average 2008 Industrial Merchant, Cylinder Large Industries gas volumes and Bulk O2 volumes 130 130 120 120 110 Hydrogen 110 Bulk 100 100 90 90 Oxygen Cylinders 80 80 70 70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 08 08 08 08 09 09 09 0
Slide 7: Further sequential progress
Further sequential progress Monthly G&S activity index, 2008 average base 100* 110 105 2008 Average 100 95 2009 Average 90 85 J F M A M J J A S O N D J F M A M J J A S 2009 2010 * Comparable revenue, adjusted for the number of days per month Air Liquide, the world leader in gases for industry, healt
Slide 8: Growth in all economies
Growth in all economies G&S sales growth (YTD 2010 / YTD 2009) + 5% +5% +11% +8% +41% +14% Recovery Growth +20% Advanced Economies Developing Economies +7% +29% Air Liquide, the world leader in gases for industry, health and the environment Q3 2010 Revenue – October 26. 2010 8
Slide 9: Continued progress in all regions
Continued progress in all regions Q3 2010 Comparable growth Q3 2010/09 YTD 2010/09 G&S sales Increased H2 volumes for refining Europe + 7% Moderate pick-up in cylinders +5% €1,555m Strong homecare activity H2 unit ramp-ups Americas + 11% Dynamic Industrial Merchant +10% €708m Strong incr
Slide 10: Gas & Services sales: +11% in Q3 2010
Gas & Services sales: +11% in Q3 2010 Industrial Merchant Large Industries +8% +21% 8% 20% +5% +16% +3% +14% +13% +2% 15% 3% 10% -2% 5% +2% +1% -3% -4% -7% -7% 0% -8% -9% -5% -12% -11% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 2010 2008 2009 2009 2009 2009 2010 2010 2010 2008 2009 2009 2009
Slide 11: Engineering & Construction: increased order intake
Engineering & Construction: increased order intake Third-party E&C sales E&C order intake In €m In €m 400 1500 1,374 1250 300 282 574 258 247 1000 826 208 203 200 185 186 750 1,105 500 100 800 250 437 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2009 2009 2009 2009 2010 2010 2010 9M Year Sales level in
Slide 12: Solid operating performance
Solid operating performance Gas & Services sales Efficiencies In €bn In €m 8.7 335 2010 Annual 8.1 Objective: > € 200m 8 7.5 300 230 198 6 200 +10% / 09* +5% / 08* GOAL GOAL GOAL 4 100 2 0 9M 08 9M 09 9M 10 2008 2009 YTD 2010 Net Capex** Operating Cash flow In €bn In €bn 2 1.9 1,5 1.4 1.4 1.6 1.66 1
Slide 13: Investment cycle acceleration
Investment cycle acceleration 12-month portfolio of opportunities Investment decisions * Capex * In Bn€ In Bn€ In Bn€ 5 3.0 2.0 4 0.9 3.8 2.4 1.7 0.7 0.8 1.4 1.4 3 1.7 0.9 2.3 1.6 1.1 2 0.8 3.8 1.9 1.1 3.0 3.0 2.5 2.4 1 1.8 1.6 0.6 0 dec juin- dec juin- dec juin- sept- YTD 07 YTD 08 YTD 09 YTD 10 07
Slide 14: Business Development in the Middle-East
Business Development in the Middle-East Pierre DUFOUR, Senior Executive Vice-President
Slide 15: Positions established in developing economies
Positions established in developing economies Developing economies: Presence in 56 developing economies 8 53% of investment decisions at end September 2010 8 21 11 8 G&S sales in developing economies: €1.6bn at end September 2010 Air Liquide, the world leader in gases for industry, health and th
Slide 16: Significant development potential Middle-East
Significant development potential Middl e-Eas t Syria Air Liquide presence Growth potential Lebanon Natural resources Kuwait upgrading (oil & petrochemicals) UAE Egypt Qatar Infrastructure development Saudi Arabia Oman Estimated industrial gases market in the $1bn $3bn Middle-East 2010 2015 Air
Slide 17: Innovative projects Middle-East
Innovative projects Middl e-Eas t CO Al Jubail Yanbu H2 project The largest unit worldwide (335,000 t/y) Air Liquide Cryogenics technology CO unit, commissioned in 2009 Qatar Saudi Arabia Hydrogen 1st outsourcing contract in the region 2 large scale units: Helium 2 x 150,000 Nm3/h Th
Slide 18: Rapid development Middle-East
Rapid development Middl e-Eas t O2 > 5,000 t/d 22 units, signed or operating: H2: 300,000 Nm3/h Middle-East G&S sales Cumulative Capex* (€m) (Base 100 in 2003) 300 300 X5 250 200 150 100 50 0 2003 2004 2005 2006 2007 2008 2009 2010e 2004 2006 2008 2010e * Industrial and financial, including tran
Slide 19: Air Liquide, #1 international player Middle-East
Air Liquide, #1 international player Middl e-Eas t Cumulative investment 750 Air Liquide presence Regional headquarter decisions (€m) Large Industries Industrial Merchant Health Syria Iran since 2008 Lebanon since 1926 Irak 2004 2006 2008 2010e Qatar Koweït since 2004 since 2006 UAE since 2007 Yanbu
Slide 20: Increasing weight of developing economies
Increasing weight of developing economies Investment decisions G&S Sales Share in developing economies Share in developing economies 53% 20% 47% 19% 17% 16% 35% 2008 2009 YTD 2010 2009 Q1 2010 Q2 2010 Q3 2010 Air Liquide, the world leader in gases for industry, health and the environment Q3 2010 Rev
Slide 21: Outlook
Outlook 9 Months Gas & Services continued growth Solid operating performance Investment cycle acceleration 2010 objective confirmed 1 250 Résultat net En M€ 1 000 750 Continuous growth in net profit in 2010, 500 in line with our long-term performance. 250 0 1989 1991 1993 1995 1997 1999 2001 2
Slide 22: Appendices
Appendices
Slide 23: Q3 G&S comparable sales growth: +11.0%
Q3 G&S comparable sales growth: + 11.0% +21% In €m +11.0% published comparable* 3 250 192 3,043 3 000 276 61 2 750 2,514 2 500 2 250 2 000 1 750 1 500 1 250 0 1 000 Q3 2009 Comparable Nat Gas Forex Q3 2010 growth* * excl. Forex & natural gas Air Liquide, the world leader in gases for industry, healt
Slide 24: Revenue breakdown by region
Revenue breakdown by region Americas Revenue Europe 24% Gas & Services YTD 2010 Asia 52% 22% €8.7bn 2% Middle-East and Africa Europe: €4.6bn Americas: €2.1bn Asia: €1.9bn 4% 7% 10% 24% 29% 35% 41% 47% 4% 36% 37% 26% Industrial Merchant Large Industries Healthcare Electronics Air Liquide, the world l
Slide 25: Europe in Q3: progressive economic recovery
Europe in Q3: progressive economic recovery Industrial Merchant 4% Growth in bulk Sales Gas & Services Q3: 24% 34% Signs of turnaround in Cylinders in €1,555m some countries 38% Sale of Equipment down Industrial Merchand still soft in Germany Comparable growth Q3 10/09: +7.1 %* Large Industr
Slide 26: Americas in Q3: Recovery, ramp-ups and takeovers
Americas in Q3: Recovery, ramp-ups and takeovers Industrial Merchant 6% 10% Positive pricing Sales Gas & Services Q3: 49% €708m 35% Strong growth in Latin America and Canada Cylinders picking up Comparable growth T3 10/09: +11.1%* Large Industries Industrial Merchant Start-ups/ramp-ups +
Slide 27: Asia in Q3: New units, ramp-ups and recovery
Asia in Q3: New units, ramp-ups and recovery Industrial Merchant 29% Strong demand in all Sales Gas & Services Q3: 40% countries €697m 4% 27% New capacities New applications in China Comparable growth Q3 10/09: +21.7%* Large Industries 9 ramp-ups around the region, particularly in China
Slide 28: Impact of currency and natural gas on G&S revenue
Impact of currency and natural gas on G&S revenue Currency In €m Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 €/USD +17 (41) (26) +30 +44 €/CAD 0 +2 +14 +25 +20 €/JP¥ +38 (8) (7) +31 +49 Others (14) (4) +31 +71 +79 Total currency impact +41 (52) +12 +157 +192 Average exchange rates Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
Slide 29: Revenue analysis by quarter (1)
Revenue analysis by quarter (1) Sales in €m Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 10/09 Q3 10/09 published comparable* Europe 1,404 1,496 1,497 1,505 1,555 +10.7% +7.1% Americas 552 577 643 703 708 +28.2% +11.1% Asia-Pacific 490 522 558 655 697 +42.3% +21.7% Middle-East & Africa 68 60 62 71 83 +22.6% +13
Slide 30: G&S revenue analysis by quarter (2)
G&S revenue analysis by quarter (2) Sales in €m Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 10/09 Q3 10/09 published comparable* Industrial Merchant 1,069 1,088 1,106 1,208 1,217 +13.8% +5.1% Large Industries 764 848 936 950 1,036 +35.7% +21.1% Electronics 227 232 252 293 309 +36.0% +20.7% Healthcare 454 487 4
Slide 31: G&S revenue analysis by quarter (3)
G&S revenue analysis by quarter (3) Published Comparable* Natural Gas Forex Growth Growth Q2 2009 -8.2% -6.0% +2.9% -5.1% Q3 2009 -8.9% -5.2% +1.5% -5.2% Q4 2009 -9.2% -2.8% -1.8% -4.6% Q1 2010 +8.3% -0.4% +0.4% +8.3% Q2 2010 +18.6% +1.6% +6.3% +10.7% Q3 2010 +21.0% +2.4% +7.6% +11.0% *excl. NG and
Slide 32: For further information, please contact
For further information, please contact : Investor Relations Corporate Communication 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.ai