Air Liquide SA · EURONEXT:AI
Air Liquide SA — Q3 2011 Earnings Presentation
35 slides from Air Liquide SA's earnings presentation, Oct 26, 2011
Slide 1: Solid activity levels, robust business development model
2011 3rd quarter Solid activity levels Robust business development model Pierre Dufour, Senior Executive Vice-President Jean-Pierre Duprieu, Executive Vice-President Paris, October 26, 2011 Fabienne Lecorvaisier, Chief Financial Officer
Slide 2: 2011 3rd quarter
2011 3rd quarter Solid activity levels Robust business development model Balanced mix of activities Geographical and applications diversity Continued investment dynamic Net debt under control Air Liquide, the world leader in gases for industry, health and the environment Q3 2011 Revenue – Oc
Slide 3: Solid activity levels
2011 3rd quarter Solid activity levels
Slide 4: Key figures
Key figures Sales Q3 11/10 Q3 11/10 YTD 11/10 In €m Q3 11 as published comparable* comparable* Gas & Services 3,223 +5.9% +7.7% +9.5% Engineering and Construction 158 -15.3% -14.4% -21.9% Other Activities 216 +8.0% +8.9% +8.9% Group Total 3,597 +4.9% +6.6% +7.7% * comparable: excluding forex, natura
Slide 5: Solid activity levels
Solid activity levels Quarterly G&S activity indicator* base 100, average 2008 115 2009 2010 2011 110 105 100 95 90 85 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 * comparable revenue (excluding forex, natural gas and significant perimeter impacts), adjusted for the number of d
Slide 6: Continued growth in Gas & Services…
Continued growth in Gas & Services… G&S comparable growth* 2008 2009 2010 2011 12% +11.0% +11.3%+11.4% +10.7% +9.7% 10% +7.9% +8.3% 8% +7.7% 6% 4% 2% 0% -2% -4% -4.2% -4.6% -6% -5.1% -5.2% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 * comparable: e
Slide 7: … and in all geographies
… and in all geographies Q3 2011 Comparable Growth* Q3 2011/10 YTD 2011/10 G&S Sales Slight downturn in Metal market in Western Europe Europe + 4.3% High comparable base (Oxea in Germany) €1,621m + 6.2% Southern Europe trends improving Americas + 10.6% Solid chemicals and refining Dynamic IM growth
Slide 8: Dynamism of developing economies
Dynamism of developing economies G&S comparable* sales growth (YTD 2011 / YTD 2010) +9% +6% +21% +2% +32% +9% +16% Advanced Economies Developing Economies +6% +24% * comparable: excluding forex, natural gas and significant perimeter impacts Air Liquide, the world leader in gases for industry, health
Slide 9: Gas & Services growth: +7.7% in Q3
Gas & Services growth*: +7.7% in Q3 Industrial Merchant: +3.2% YTD Large Industries: +15.2% YTD +8% +21% +22% 8% +5% +5% 20% +17% +17% +4% +3% +2% +2% +14% +13% 3% 15% +11% 10% -2% 5% -7% -7% 0% -9% -12% -5% -3% -4% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 2011 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2009 2010 2010 20
Slide 10: Good order intake in Engineering & Construction
Good order intake in Engineering & Construction Third party E&C sales E&C order intake In €m In €m YTD Year 300 574 1500 448 1250 203 200 185 186 177 1000 156 158 134 750 100 1105 500 800 706 250 437 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 2010 2010 2010 2010 2011 2011 2011 Stabilization of thi
Slide 11: E&C strategy evolution
E&C strategy evolution Lurgi refocused on Less construction scope Internal sales for third parties Total E&C sales Third-party E&C sales EP* EPC* Internal sales Third-party sales 44 % 2008 38 % EPC* EP* Internal sales Third-party sales 21 % 52 % YTD 2011 * Engineering, Procurement and Construction A
Slide 12: Recent trends in our end markets
Recent trends in our end markets Large Industries - Steel - - Chemicals - - Refining - Industrial Merchant - Food - Craftsmen & - Auto & Fab - & Pharmacy - Distributors - Electronics - Flat screens - Integrated circuits - TFT/LCD - - Photovoltaic - Healthcare - Home healthcare - - Medical gases - -
Slide 13: Other activities contribution
Other activities contribution Continued recovery in Steady Specialty Chemicals Welding and Diving 20% 20% +19% +12% +13% +15% +10% +10% +11% +12% +9% 10% +7% +8% 10% +8% +6% +4% +4% +5% +3% +3% +1% 0% 0% -2% -1% -1% -6% -10% -7% -8% -10% -8% -20% -20% -30% -27% -30% -29% -34% -35% -40% -40% Q1 Q2 Q3
Slide 14: Steady operating performance
Steady operating performance Gas & Services sales Efficiencies In €bn 9.6 In €m 2011 Annual 8.7 335 Objective: > €200m 8.1 280 8 7.5 300 230 192 6 +9.5% (1) 200 GOAL GOAL GOAL 4 100 2 0 YTD 08 YTD 09 YTD 10 YTD 11 2008 2009 2010 YTD 9M YTD 2011 2011 11 Net Capex(2) Operating Cash flow(3) In €bn In €
Slide 15: Robust business development model
2011 3rd quarter Robust business development model Balanced mix of activities Geographical and applications diversity Continued investment dynamic Net debt under control
Slide 16: Robust business models and balanced mix of activities
Robust business models and balanced mix of activities Industrial Merchant Large Industries Diversified customers / applications Contracts >15 years, take-or-pay ~70 % 1 to 5-year contracts, fixed part ~ 20% Cost indexation G&S Sales YTD 2011 38% 36% Electronics Healthcare Carrier gases: 10-year cont
Slide 17: Geographic expansion
Geographic expansion Global presence Acceleration in developing countries YTD G&S sales 10 historic countries France 70 other Germany countries Spain 22% 30% Italy 22% Belgium 70% 19% Netherlands United-States 16% Canada 15% Japan Australia YTD G&S sales growth 10 historic 70 other countries countri
Slide 18: Diverse and dynamic applications portfolio
Diverse and dynamic applications portfolio 5 business lines, more than 1,000 applications Welding Food & Refrigerated Transport Syngas purification Pharmaceuticals Engineering & Others Construction Materials & Energy H2 energy Home healthcare New Offshore pathologies Automotive & Hospitals Fabricati
Slide 19: Continued investment momentum…
Continued investment momentum… 12-month portfolio Investment Net capex* Start-ups** of opportunities decisions 48 In €bn In €bn In €bn 2.2 1.7 24 3.9 3.7 3.9 1.4 1.2 0,9 0,8 0,9 1.5 15 1.1 12 3,0 2,9 3,0 YTD YTD YTD YTD YTD YTD Dec-10 June-11 Sept-11 2009 2010 2011 2009 2010 2011 2009 2010 2011e 201
Slide 20: New project signing
New project signing Investment decisions Q3 2011 Investment decisions* In €bn Industrial Large Turkey Merchant Industries 1.9 Site takeover and 1.6 1.5 new capacity China, Singapore, Taiwan 0.6 New O2 contracts Other Qatar Healthcare YTD 08 YTD 09 YTD 10 YTD 11 Helium Electronics Canada Services to
Slide 21: Sustained long-term investment returns
Sustained long-term investment returns Operating income vs. capital employed* Base 100 Operating income 200 recurring 175 150 Capital employed 125 100 75 50 25 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 June 11 ** * Shareholders equity + minority interests + net debt, end of the period ** J
Slide 22: Strong balance sheet
Strong balance sheet Available liquidity, Group debt maturity profile September 2011: €3.8bn next 3 years: €2.1bn In €bn In €bn 2,0 2,0 2,0 2,0 1,6 1,6 1,2 2.3 1,2 0,8 1.5 0,8 0.2 0,4 0,4 0.3 0.7 0.6 0.3 0,0 0,0 2011 2012 2013 Cash and cash equivalents Bonds and private placements Confirmed credit l
Slide 23: Access to new financing markets
Access to new financing markets Issuance in RMB Investors by geography in September 2011 (for the 5-year tranche) €200m, 5 years Coupon: 3.00% Others Europe 3% Hong Kong + 12% €100m, 7 years Coupon: 3.95% 52% 33% Singapore Air Liquide, the world leader in gases for industry, health and the environme
Slide 24: Net debt under control
Net debt under control Net debt to equity ratio vs. sales Group sales Gearing Base 100 In % 175 105% 150 90% 125 75% 100 60% 75 45% 50 30% 25 15% 0 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 June 11* * June figures: Indebtedness corrected for seasonality and dividend; H1 2011 sales x 2 Air
Slide 25: 2011 Outlook
2011 Outlook * Q3 2011 Activity globally in line Steady operating performance Robust business development model 2011 objective confirmed Continued steady growth of net profit in 2011 * in a normal environment Air Liquide, the world leader in gases for industry, health and the environment Q3 2011 Rev
Slide 26: Appendices
mer LIQUIDE 2011 3'4 quarter Appendices
Slide 27: YTD 2011 Revenue breakdown by region
YTD 2011 Revenue breakdown by region Americas Europe 22% 52% Gas & Services Revenue 24% Asia YTD 2011: €9.6bn 2% Middle-East and Africa Europe: €4.9bn Americas: €2.1bn Asia: €2.3bn 33% 32% 35% 37% 39% 47% 4% 4% 10% 24% 8% 27% Industrial Merchant Large Industries Healthcare Electronics Air Liquide, t
Slide 28: Europe in Q3
Europe in Q3 Industrial Merchant 3% Strong growth in Central and Q3 Gas & Services sales: 24% 33% Eastern Europe €1,621m 40% Western Europe stable excluding internal transfers Pricing impact positive Q3 11/10 Comparable change: +4.3%* Large Industries Small decline in Metals -0.9% Indust
Slide 29: Americas in Q3
Americas in Q3 Industrial Merchant 8% 10% Continued recovery in North Q3 Gas & Services sales: America 47% €728m 35% Positive pricing effect Strong growth in Latin America Q3 11/10 Comparable change: +10.6%* Large Industries Ramp-ups in South America Industrial Merchant +6.7% Chemicals
Slide 30: Asia-Pacific in Q3
Asia-Pacific in Q3 Industrial Merchant 26% New liquid capacities in China Q3 Gas & Services sales: 38% €791m 4% First signs of recovery in Japan 32% Large Industries Numerous ramp-ups in China Q3 11/10 Comparable change: +12.5%* H2 volume increase in Industrial Merchant Singapore +7.1% Large
Slide 31: Revenue analysis by quarter (1)
Revenue analysis by quarter (1) Sales in €m Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 11/10 Q3 11/10 as published comparable* Europe 1,555 1,644 1,647 1,651 1,621 +4.2% +4.3% Americas 708 694 709 699 728 +2.9 % +10.6% Asia-Pacific 697 733 759 746 791 +13.4% +12.5% Middle-East 83 77 70 75 83 +0.0% +5.1% & Afr
Slide 32: Revenue analysis by quarter (2)
Revenue analysis by quarter (2) Sales in €m Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 11/10 Q3 11/10 as published comparable* Industrial Merchant 1,217 1,222 1,200 1,199 1,238 +1.7% +3.4% Large Industries 1,036 1,097 1,133 1,121 1,157 +11.6% +11.3% Electronics 309 324 343 336 317 +2.9% +13.2% Healthcare 481
Slide 33: G&S Revenue growth by quarter (3)
G&S Revenue growth by quarter (3) Growth as Significant Comparable Natural Gas Change published perimeter growth* Q2 2010 +18.6% +1.6% +6.3% - +10.7% Q3 2010 +21.0% +2.4% +7.6% - +11.0% Q4 2010 +18.5% +0.8% +6.4% - +11.3% Q1 2011 +15.4% +0.5% +3.5% - +11.4% Q2 2011 +8.1% +1.6% -3.2% - +9.7% Q3 2011
Slide 34: Impact of Currency and natural gas on Gas & Services revenue
Impact of Currency and natural gas on Gas & Services revenue Currency In €m Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 €/USD +44 +35 +7 (59) (43) €/CAD +20 +16 +9 (10) (4) €/JP¥ +49 +44 +31 (3) +3 Others +79 +75 +49 (22) (13) Total currency impact +192 +170 +96 (94) (57) Average currency rate Q3 10 Q4 10 Q1 11 Q
Slide 35: For further information, please contact
For further information, please contact: Investor Relations Communications 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.airliquide.c