Air Products And Chemicals, Inc. · NYSE:APD

Air Products And Chemicals — Q1 2011 Earnings Presentation

16 slides from Air Products And Chemicals's earnings presentation, Jan 21, 2011

  1. Slide 1: Q1 FY'11 Earnings Conference Call

    Q1 FY’11 Earnings Conference Call January 21, 2011

  2. Slide 2: Forward Looking Statement

    Forward Looking Statement Note: This presentation contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including earnings guidance, projections and targets. These forward-looking statements are based on management's reasonab

  3. Slide 3: Additional Information

    ADDITIONAL INFORMATION On February 11, 2010, Air Products Distribution, Inc. (“Purchaser”), a wholly owned subsidiary of Air Products and Chemicals, Inc. (“Air Products”), commenced a cash tender offer for all the outstanding shares of common stock of Airgas, Inc. (“Airgas”) not already owned by Air

  4. Slide 4: Q1 Financials

    Q1 Financials Fav/(Unfav) vs. ($millions, excluding items) Q1 FY11 Q1 FY10 Q4 FY10 Sales $2,392 10% 2% - Volume 10% -% - Price 1% 1% - Energy/RM pass-thru -% (1%) - Currency (1%) 2% Operating Income $404 17% 1% Operating Margin 16.9% 100bp (20bp) Net Income $296 17% 1% Diluted EPS ($/share) 1.35 16%

  5. Slide 5: Q1 EPS Analysis

    Q1 EPS Analysis Q1 FY11 Q1 FY10 Change As-reported diluted EPS $1.23 $1.16 - acquisition-related exp (0.12) - Adjusted EPS $1.35 $1.16 $0.19 Volume $0.25 Price / raw materials 0.00 $0.23 Cost (0.02) Currency/FX (0.02) Non-controlling interest (0.01) Higher shares outstanding (0.01) Increase $0.19 5

  6. Slide 6: Merchant Gases

    Merchant Gases Fav/(Unfav) vs. Q1 FY11 Q1 FY10 Q4 FY10 Sales $988 6% 4% - Volume 7% -% - Price 1% 1% - Currency (2%) 3% Operating Income $201 6% 8% Operating Margin 20.3% - bp 80bp  Significant Asia volume growth  Positive price in North America and Asia 6

  7. Slide 7: Merchant Gases: Q1 Sales Analysis vs PY

    Merchant Gases: Q1 Sales Analysis vs PY North America Europe Asia Sales % change 6% (4%) 35% - Volume 3% 3% 25% - Price 3% (1%) 5% - Currency - (6%) 5%  Record Asia revenue and income  Europe liquid recovery tempered by packaged gas and healthcare weakness  Positive North America volume and price

  8. Slide 8: Tonnage Gases

    Tonnage Gases Fav/(Unfav) vs. Q1 FY11 Q1 FY10 Q4 FY10 Sales $766 10% 2% - Volume 12% 5% - Energy/RM pass thru (1%) (4%) - Currency (1%) 1% Operating Income $116 15% (1%) Operating Margin 15.1% 70bp (50bp)  Volume growth driven by loading and new plants  Maintenance costs were lower than last year,

  9. Slide 9: Electronics & Performance Materials

    Electronics & Performance Materials Fav/(Unfav) vs. Q1 FY11 Q1 FY10 Q4 FY10 Sales $526 21% 1% - Volume 21% (2%) - Price -% 1% - Currency -% 2% Operating Income $69 42% (18%) Operating Margin 13.1% 190bp (300bp)  Electronics sales 30% 4%  Performance Materials sales 11% (4%) 9

  10. Slide 10: Equipment & Energy

    Equipment & Energy Fav/(Unfav) vs. Q1 FY11 Q1 FY10 Q4 FY10 Sales $112 3% (13%) Operating Income $20 159% -% Sales Backlog $209 (36%) (24%)  Higher LNG activity  Backlog expected to improve 10

  11. Slide 11: Outlook

    Outlook FQ1 2011 EPS $1.35 • New plants on-stream • Improving economy EPS • Higher Equity Affiliates • Lunar new year • Higher tax rate EPS FQ2 2011 EPS $1.36-$1.40 FY 2011 EPS $5.55-$5.70 11 Non-GAAP, see appendix for reconciliation.

  12. Slide 12: Appendix Slides

    Appendix Slides

  13. Slide 13: Appendix: Q1 FY11 Results and Guidance

    Appendix: Q1 FY11 Results and Guidance ($ Millions, except per share data) Non GAAP GAAP Measure Adjustments Non GAAP Measure $ % $ % Q111 vs. Q110 - Total Co. Q111 Q110 Change Change Q111 (1) Q111 Q110 Change Change Sales 2,391.7 2,173.5 218.2 10% 2,391.7 2,173.5 218.2 10% Operating Income 360.6 34

  14. Slide 14: Appendix: ROCE

    Appendix: ROCE $ Millions Quarter Ended Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Numerator Operating Income Reported 260.4 143.8 328.0 345.0 340.6 336.4 367.0 360.6 Equity Affiliate Income 27.0 28.5 32.2 26.9 32.2 32.5 35.3 27.8 Earnings before tax as reported 287.4 172.3 360.2 371.9 372.8 368.9

  15. Slide 15: Appendix: ROCE Tax Rate

    Appendix: ROCE Tax Rate Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Reported Income Before Taxes 257.4 144.8 332.3 340.3 343.3 338.9 371.5 357.4 Tax Expense 66.5 25.4 86.3 83.5 84.9 77.6 93.5 81.5 Tax Rate Reported 25.8% 17.5% 26.0% 24.5% 24.7% 22.9% 25.2% 22.8% ITEMS Operating Income Global Cost Reduct

  16. Slide 16: Thank you... tell me more

    Thank you... tell me more proputis £=:

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