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Air Liquide SA — Investor Presentation (March 2007)
20 slides from Air Liquide SA's investor presentation, March 2007
Slide 1: Air Liquide in China
Air Liquide in China March 2007
Slide 2: Air Liquide Group background
Air Liquide Group background
Slide 3: Gas and services: 88% of total sales
Gas and services: 88% of total sales Industrial Merchant (45% of G&S) Bulk & cylinders deliveries Serving a wide variety of customers Large Industry (30% of G&S) Large dedicated plants at customer sites Air gases and Hydrogen Pipeline network Healthcare (16% of G&S) Dedicated medical sup
Slide 4: Business mix by region
Business mix by region 2006 Gas & Services revenue Europe: Americas: Asia: €5.2 bn €2.6 bn €1.7 bn 4% 6% 7% 31% 23% 44% 45% 46% 5% 29% 42% 18% Industrial Merchant Large Industries Healthcare Electronics 4
Slide 5: Market shifts in a growing investment portfolio
Market shifts in a growing investment portfolio Portfolio €2.5 bn Negotiating first projects €1 bn in Energy gasification >€1 bn ≈ €1.8 bn DAdding O2 opportunities In €M to H2 refining 1800 500 Accelerating decisions in emerging markets 400 DGlobal capability 50 900 DRecent major wins 400 500 60
Slide 6: New ambition: Improving profit delivery
New ambition : Improving profit delivery Revenue OIR Margin Net profit €16-18 bn 16-17% €1.6-1.8 bn CAGR +8-10% 15% CAGR +10-13% €11 bn €1 bn 2006 2011 2006 2011 2006 2011 More opportunities in Operating leverage D Energy D Emerging countries Cost reduction D Leveraging trends in Healthcare an
Slide 7: Air Liquide in China
rn AIR LIQUIDE Air Liquide in China
Slide 8: Building Asian presence
Building Asian presence SEA JV’s JAG Revenue minorities €22000 bn SOAEO minorities €0.5 bn € 1.8 bn SEA JAG creation JAG AL Japan € 1.3 bn minorities €11000 bn €0.8 bn 00 2002 2003 2004 2005 2006 2006 proportional proportional proportional proportional proportional pro forma consolidated Leader in A
Slide 9: China: the '6th continent'
China: the ‘‘6th continent’’ Europe China Paris Rome Beijing Shanghai Europe China • Area: 10,16million Km2 • Area: 9,60 million Km2 • Population: 728million • Population: 1300million • 43 countries • 34 provinces & Special Regions • Distance from Paris to Berlin: 880Km • Distance from Beijing to Sh
Slide 10: China: GDP scale by province
China: 34 countries + Heilongjiang GDP scale ia g ol Jilin on M ner Liaoning In Beijing / Tianjin / Ga Hebei ns Shanxi Ningxia u Shandong Shaanxi Qinghai Henan Jiangsu / Shanghai Anhui Sichuan n g Hubei Zhejiang qi o ng Jiangxi Ch Hunan Guizhou Fujian Yunnan Taiwan Guangxi Guangdong Hong Kong Macau
Slide 11: A Booming and Massive economy
A Booming and Massive economy Billion % Sustained high growth US$ 15 D~ 10 % / year 2,000 C E FRAN 10 CHINA Driven by industrial production 1,000 5 D~ 16% / year 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 World 4th largest GDP since 2005 China Industrial Production growth % D~ Germany in
Slide 12: Air Liquide in China
Air Liquide in China All Air Liquide Group activities are present: DGas and services …… since 1910 … • Industrial gases (Electronics, Industrial Customers, Large Industries) • Healthcare • Air Liquide China (AL China) restarted in 1990 • Hong Kong Oxygen (HKO) since 1959 • Healthcare division Rep.
Slide 13: Recent wins in China
Recent wins in China Large Industry, strong references : DSelectivity in steel customers : Posco JV with Shagang, Rizhao Iron & Steel, Shagang DChemicals : LG Chem, Lidong, Bayer, Tianjin Bohai Chemical ⇒ Illustrates the move to OTF Electronics : references in semiconductors and TFT/LCD : DHynix
Slide 14: Developing a balanced growth platform in China
Developing a balanced growth platform in China China: in line with the 500 m€ of investment decisions between 2004 and 2008 BEIJING-TIANJIN 6 plants, chemicals, steel, Industrial Customers semiconductors presence Filling centers, SHANDONG 5 plants, steel, chemicals liquid plants Major Large GREATER
Slide 15: Air Liquide presence in Northern China
Air Liquide presence in Northern China Beijing Shenyang 1 ASU (JV) 1 H2 filling center On-sites On-sites Beijing Tianjin Healthcare Representative Office Tianjin 1 ASU 1 ASU under commissioning Liaoning 2 ASU under construction JV (Tianjin Soda) Qingdao 2 H2 plant 1 ASU taken over (2005) 1 cylinder
Slide 16: Air Liquide presence in Eastern China
Air Liquide presence in Eastern China Zhanjiagang 1 ASU 2 ASU under construction 1 Electronics Gases plant under construction Changshu Pipeline network with N2 and H2 plants under expansion Shanghai Wuxi 1 ASU 1 ASU (JV) + 1 Electronics center + pipeline pipeline 1 filling center (JV) under expansio
Slide 17: Air Liquide in China: an acceleration
Air Liquide in China: an acceleration 2007: HKO to be sold to Linde gas Guangdong open to AL China Shagang contract (largest private steelmaker) Acceleration 2006: 5 major Air Gases contracts 2005: New Territory (Shandong) + Project execution 1 major Air Gases contract + 1 acquisition 2004: 4 major
Slide 18: Back up
rn AIR LIQUIDE March 2007
Slide 19: Driven by strong decentralized regions
Driven by strong decentralized regions China GDP 2005 unit: B USD A few provinces 400 Belgium GDP<35 stand-out 35≤ GDP<60 D Hebei Austria 300 60≤ GDP<100 D Shandong GDP≥ 100 D Henan Ireland 200 D Jiangsu Portugal D Shanghai D Zhejiang 100 D Guangdong Although all - contribute Anhui T ib e t Hebe
Slide 20: AL China Plants start-ups
AL China Plants start-ups Beijing High-Tech 2005 430 tpd liquid + GAN pipeline Shanghai SCIPIG Zhangjiagang ZPSS 2004 - 2006 2006 Tianjin Dagang ASU 300 tpd 200 tpd 1997 Hyco H2 55,000 m3/h 200 tpd CO 15,000 m3/h Tianjin LG Chem 2007 275 tpd + liquid Changshu Pipe H2 + N2 2006 Wuxi High-Tech MeOH 40