Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — L'Air Liquide Ord — FY 2023 Earnings Presentation
43 slides from Air Liquide Sa's earnings presentation, Feb 20, 2024
Slide 1: FY 2023 Results
FY 2023 Results Strong Performance Doubling ADVANCE Margin Improvement Ambition François Jackow, Chief Executive Officer Jérôme Pelletan, Chief Financial Officer Mike Graff, Executive Vice President Pascal Vinet, Executive Vice President Rotterdam, SMR Decision for a Carbon Capture investment Paris, Feb
Slide 2: Strategic and Operational Review
01 Strategic and Operational Review François Jackow - Chief Executive Officer 2 THIS DOCUMENT IS PUBLIC FY 2023 Results - February 20, 2024
Slide 3: Strong 2023 Performance
Strong 2023 Performance Comparable OIR Recurring Cash Flow Recurring (3) Sales Growth margin(1) Net Profit(2) after WCR ROCE(4) + %4 + 80 + 13% + 13% 10.6% bps (1) Improvement of the operating Income Recurring on Sales ratio excluding energy passthrough impact (2) Excluding exceptional and significant
Slide 4: Significant 2023 Margin Improvement
Significant 2023 Margin Improvement IM Pricing Efficiencies +8 % + 23% Delivery Mindset Strong execution 2023 figures 4 THIS DOCUMENT IS PUBLIC FY 2023 Results - February 20, 2024
Slide 5: Accelerated Investments to Secure Profitable Growth
Accelerated Investments to Secure Profitable Growth 2 main drivers(1) Record high backlog €4.4 >40% Energy Transition Normand’Hy bn Trailblazer Porthos Grandpuits Becancour Others Low-C Biogas ASUs electrification >35% Electronics in Asia, USA Investment Backlog(2) (1) Projects in investment backlog (
Slide 6: Active Development of Investment Projects
Active Development of Investment Projects Energy Transition Projects awarded fundings Electronics ■ Total of 12 LI projects €2.7bn Capex ▪ Investment opportunities ▪ Advanced Materials ■ 3 projects signed Reshoring projects in $200m capex or started(1) Europe and US for 2 new production ■ 9 projects
Slide 7: Strong Progress on CO2 Emissions Roadmap
Strong Progress on CO2 Emissions Roadmap Deploying decarbonization plan around 3 levers 2023 achievement 2023 key decisions to contribute in a few years -1.8 m tonnes of CO2 emissions ⅓ ⅓ Additional Renewable PPAs(2) Carbon Capture Low-Carbon in 2023 3 Usage / Storage Electricity -5% (1) levers Sour
Slide 8: Delivering Value to Shareholders Over the Long Term
Delivering Value to Shareholders Over the Long Term Dividend per share(1) in € CAGR over 20 years +8.1% (2) €3.20 ✓ New dividend proposed in 2024(2) Free share ▪ +8.5% increase attribution ▪ 56% Payout Ratio Total Shareholder Return(3) ✓ Free shares attribution in June 2024 +33% ▪ and associated div
Slide 9: Doubling the ADVANCE Margin Improvement Ambition
Doubling the ADVANCE Margin Improvement Ambition Confirmed objectives Acceleration of margin improvement and investments decisions ✔ Sales growth +5-6% CAGR(1) ■ +320 over 4 years(4) bps ✔ ROCE >10% by 2023 and forward(2) ■ ✔ CO2 emissions inflection around 2025 ■ ✔ €16bn investment decisions(3) ■ x2
Slide 10: Strong Financial Performance Through Disciplined Execution
02 Strong Financial Performance Through Disciplined Execution Jérôme Pelletan - Chief Financial Officer 10 THIS DOCUMENT IS PUBLIC FY 2023 Results - February 20, 2024
Slide 11: Very Solid Comparable Sales Growth
Very Solid Comparable Sales Growth Sales in €m FY 22 FY 23 FY 23/22 FY 23/22 Q4 23/22 As published Comparable Comparable Gas & Services 28,573 26,360 -7.7% +4.2% +4.6% Engineering & 474 390 -17.7% -15.6% -25.4% Construction Global Markets & 887 858 -3.3% -1.0% -5.7% Technologies(1) Group Total 29,93
Slide 12: Improved Growth in Q4 2023
Improved Growth in Q4 2023 2023 Gas & Services comparable sales growth FY 23: +4.2% 12 THIS DOCUMENT IS PUBLIC FY 2023 Results - February 20, 2024
Slide 13: Resilient Growth Leveraging Mix and Business Model
Resilient Growth Leveraging Mix and Business Model FY 2023 Gas & Services comparable sales growth by Activities Europe +9% +4 % Asia-Pacific +2% +8% Americas +5 % Middle-East -2% Africa +7 % +2% Group Comparable sales growth +4 % 13 THIS DOCUMENT IS PUBLIC FY 2023 Results - February 20, 2024
Slide 14: Q4 – Higher Sales Growth in Americas and Europe
Q4 – Higher Sales Growth in Americas and Europe Americas All Business Lines contributing to growth ▪ Soft Steel and mixed Refining, higher U.S. Chemicals ● LI ▪ Customer turnarounds FY 22: +10.2% FY 23: FY 23: +5.1% +5.1% ▪ Sustained +5% pricing Sales ● IM ▪ Resilient gas volumes Q4 2023 ▪ Strong pri
Slide 15: Q4 – Contrasted Asia, Continued Momentum in AMEI
Q4 – Contrasted Asia, Continued Momentum in AMEI Asia High growth in IM ▪ Low activity FY 22: +7.0% FY 23: FY +1.8% 23: +1.8% ● LI ▪ Extended customer stoppage in China Sales ▪ +5% pricing Q4 2023 ● IM ▪ Strong volume growth in China €1,334m ▪ Solid Carrier Gases ● EL ▪ Low E&I and Specialty Materia
Slide 16: Q4 – Continued Robust Growth in IM, Stabilized Activity in LI
Q4 – Continued Robust Growth in IM, Stabilized Activity in LI Industrial Merchant Large Industries Continued pricing, resilient volumes Stable at low level Sales FY 23: Sales FY 22: +14.2% FY 23: +8.5% FY 22: -6.6% FY 23: -1.8% Q4 2023 Q4 2023 €2,937m €1,883m ■ +6% pricing on top of +15% in Q4 22 ■
Slide 17: Q4 – Electronics Off the Lows, Strong Momentum in Healthcare
Q4 – Electronics Off the Lows, Strong Momentum in Healthcare Electronics Healthcare Solid growth in Carrier Gases, high E&I sales Well balanced growth between HHC & Medical gases FY 22: +16.4% FY FY 23:23: +2.4% +2.4% FY 22: +3.6% FY 23: FY +8.4% 23: +8.4% Sales Sales Q4 2023 Q4 2023 €622m €1,030m ■
Slide 18: +80bps of OIR Margin Improvement, +150bps over 2 years
+80bps of OIR Margin Improvement, +150bps over 2 years FY 23/22 FY 23/22 In €m FY22 FY 23 As published Comparable Revenue 29,934 27,608 -7.8% +3.7% Purchases (13,813) (11,147) -19.3% Personnel Expenses (4,963) (5,100) +2.7% Other net income and expenses (3,830) (3,811) -0.5% Operating profit before d
Slide 19: Delivering on Pricing and Efficiencies Fostering Margin Improvement
Delivering on Pricing and Efficiencies Fostering Margin Improvement IM Pricing Efficiencies Portfolio Management +8.4% €466m 14 acquisitions +14.7% U.S., Canada, Italy, China, India WIP €400m Sweden, Benelux +3.6% Germany 2021 2022 2023 2 divestitures Cumulative pricing effect base 100 Year 2020 ▪ +23%
Slide 20: High & Resilient IM Pricing On Top of Record Price Increase in 2022
High & Resilient IM Pricing On Top of Record Price Increase in 2022 Q4 23 FY 23 Pricing context ▪ Inflationary environment Americas +6.3% ▪ Continued smart pricing management Europe +14.0% ▪ Decrease of Energy prices Asia-Pacific +7.3% ▪ Continued tightness in several molecules Middle-East & Africa +9
Slide 21: Strong Growth Leverage on Net Profit
Strong Growth Leverage on Net Profit FY 23/22 FY 23/22 In €m FY22 FY 23 As published Excl. FX Revenue 29,934 27,608 -7.8% -3.6% Operating income recurring 4,862 5,068 +4.2% +3.7% Other non-recurring operating income & expenses (571) (496) comparable Operating income 4,291 4,572 Net financial costs and
Slide 22: Strong Cash Flow Allocated to Capex and Dividends
Strong Cash Flow Allocated to Capex and Dividends +13 % excl.FX(1) <10,448> <10,261> +6,357 <1,620> <280> <102> <9,221> <3,393> +172 Gearing 47.5% Gearing <94> Gearing 41.8% 36.8% (1) Growth of Cash Flow from Operations after changes in WCR, excluding FX impact (2) Acquisitions, transactions with mi
Slide 23: Improving ROCE While Increasing Capex
Improving ROCE While Increasing Capex Recurring ROCE after tax(1) 10.6% Airgas acquisition (1) Recurring ROCE based on Recurring Net Profit, see definition in the appendix of the management report 23 THIS DOCUMENT IS PUBLIC FY 2023 Results - February 20, 2024
Slide 24: Record High Investment Decisions & Backlog
Record High Investment Decisions & Backlog 12-months investment Investment Decisions (1) Investment Backlog (1) Opportunities (1) Financial Industrial High level of opportunities: Strong activity signing: Record high backlog: ▪ 3 major Energy Transition LI projects: ▪ Despite major signed projects e
Slide 25: Start-up / Ramp-up Contribution to Sales
Start-up / Ramp-up Contribution to Sales Start-up date of major projects Sales Contribution(1) 2023 2023 2024 2024 Q4 Q1 Q2 H1 Q3 H2 Q4 FY 2023 €267m Asia, Asia, Asia, Europe Americas Americas (1) Americas Asia, Asia, Americas, Americas, Europe, Europe AMEI FY 2024 €270 Americas, Americas, Outlook -
Slide 26: 2024 Outlook
2024 Outlook 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
Slide 27: 2023 Takeaways
2023 Takeaways Demonstrating Once Again the Strength of the Business Model Resilience Sustained growth drivers Growth accelerators Healthcare Growth Energy Transition Industrial Merchant Electronics Performance Doubling initial margin improvement ambition Supported by strong Innovation & outstanding
Slide 28: Appendix
03 Appendix 28 THIS DOCUMENT IS PUBLIC FY 2023 Results - February 20, 2024
Slide 29: FY 2023 - Beneficial Mix of Geographies and Activities
FY 2023 - Beneficial Mix of Geographies and Activities 2023 Gas & Services Revenue €26,360m 3% Global Markets & Technologies Engineering & Construction 2% 9% Electronics Europe Asia-Pacific 43% Industrial Americas Merchant €9.7bn Africa €5.4bn €10.2bn 15% Healthcare Middle-East €27,608m €1.0bn 2023 Gr
Slide 30: Main Components of Sales Growth
Main Components of Sales Growth +12.6% +3.7% Base business 2019 2020 2021 2022 2023 Start-ups, Ramp-ups, Site takeovers Base business Significant M&A 30 THIS DOCUMENT IS PUBLIC FY 2023 Results - February 20, 2024
Slide 31: Q4 Sales and FY 2023 OIR by Geographies
Q4 Sales and FY 2023 OIR by Geographies Americas Europe Asia 5% 2% 10% IM 30% 31% 34% 30% LI Q4 sales €2,454m €2,428m €1,334m 15% split HC 70% EL 37% 3% 33% +5.6% +4.7% +1.8% Q4 23/22 Comparable Sales Growth Growth as Comparable Growth as Comparable Growth as Comparable in €m FY 2023 FY 2023 FY 2023
Slide 32: FY 2023 - Very High E&C Order Intake, Robust GM&T Underlying Activity
FY 2023 - Very High E&C Order Intake, Robust GM&T Underlying Activity Comparable sales growth Engineering & Construction Global Markets & Technologies FY 22: +20.6% FY 23: -15.6% FY 22: +25.8% FY 23: -1.0% Sales Sales FY 2023 FY 2023 €390m €858m Total FY 23 Sales(1) -5.5% FY 23 organic sales growth(
Slide 33: Record High Backlog at €4.4bn
Record High Backlog at €4.4bn Decisions Start-ups See definitions in appendix 33 THIS DOCUMENT IS PUBLIC FY 2023 Results - February 20, 2024
Slide 34: Consolidated P&L
Consolidated P&L In €m FY22 FY 23 Revenue 29,934 27,608 Operating costs (22,606) (20,058) Operating profit before depreciation 7,328 7,550 Depreciation and amortization (2,466) (2,482) Operating income recurring 4,862 5,068 Other non-recurring operating income & expenses (571) (496) Operating income
Slide 35: Consolidated Balance Sheet Simplified
Consolidated Balance Sheet Simplified In €m ASSETS 31/12/2022 31/12/2023 EQUITY AND LIABILITIES 31/12/2022 31/12/2023 Goodwill 14,587 14,194 Shareholders' equity 23,736 24,321 Fixed assets 25,458 25,283 Minority interests 836 722 Other non-current assets * 1,235 1,137 Total equity 24,572 25,043 Total
Slide 36: Cash Flow Statement
Cash Flow Statement en€m in M€ FY22 FY 23 Capacité Funds provided d'autofinancement by operations 6,255 6,357 Variation in Changes duWorking Besoin en Capital Fonds de Roulement (397) (154) Autrescash Other éléments itemsavec impact sur la trésorerie (48) 60 Fluxcash Net net de from trésorerie operat
Slide 37: Impact of Currency and Energy on Gas & Services Revenue
Impact of Currency and Energy on Gas & Services Revenue in €m Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 €/USD +141 +271 +373 +274 +102 (50) (177) (121) €/ARS (5) (4) (7) (62) (40) (62) (97) (182) €/JP¥ (5) (10) (16) (23) (20) (17) (26) (21) €/Rmb +52 +59 +62 +6 (18) (51) (83) (42) €/ZAR +4 +2
Slide 38: Financing Structure as of December 31, 2023
Financing Structure as of December 31, 2023 Fixed / Variable rates Sources Maturity (gross debt) Private placements Commercial paper 7% €m Fixed 4% rate 10,000 93% Bank debt > 5 years 7,500 14% 5,000 Between 1 and Others(1) 5 years 1% 2,500 < 1 year Bonds 0 Variable 74% Market debt rate 85% 7% (1) O
Slide 39: ESG External Recognition in 2023
ESG External Recognition in 2023 “A-”on both Included in the Constituent of the Once again in the Climate and Water “DJSI Europe Index” “FTSE4Good index top 10% of the best performance series” rated companies “A” rating “Prime” status In the top 3% of “ESG Industry Top Rated” assessed companies “low
Slide 40: Investment Cycle – Definitions
Investment Cycle – Definitions Investment opportunities at end of the period ▪ Investment opportunities under consideration by the Group for decision within 12 months. ▪ Industrial projects with investment value > €5m for Large Industries and > €3m for other business lines. ▪ Includes asset replaceme
Slide 41: Regular and Sustained performance
Regular and Sustained performance CAGR over 30 years(1) Revenue (in €m) EPS (2) (in €) +6.1% +7.2% Cash Flow (in €m) Dividend Per Share(2) (in €) +7.2% +8.7% (1) Calculated according to prevailing accounting rules over 30 years (2) Based on current year results and proposed for payment the following
Slide 42: For further information, please contact
For further information, please contact: Upcoming events 2024 First Quarter Revenue: April 24, 2024 Investor Relations www.airliquide.com IRTeam@airliquide.com Follow us Linkedin Corporate Headquarters: 75, Quai d’Orsay 75321 Paris Cedex 07 Communication Tel : +33 (0)1 40 62 55 55 RCS Paris 552 096
Slide 43: Disclaimer
Disclaimer This presentation may contain forward-looking statements (including objectives and trends) about Air Liquide’s financial situation, operating results, business activities and strategy. Although Air Liquide believes that the expectation reflected in such forward-looking statements are reason