Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — Debt Investor Presentation (May 2024)
47 slides from Air Liquide Sa's debt investor presentation, May 2024
Slide 1: Green Bond Issue Through 2024 Sustainable Financing Framework
Green Bond Issue Through 2024 Sustainable Financing Framework Green Bond Investor Presentation May 2024 1 Green Bond Investor Presentation May 2024
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by L’Air Liquide SA (“Air Liquide”) solely for use at presentations held in connection with the proposed offering of notes of Air Liquide Finance (the “Transaction”). The information herein is only a summary and does not purport to be com
Slide 3: Speakers
Speakers v Guillaume DE-SMEDT Jacques MOLGO Group Deputy Sustainability Vice Group Deputy Chief Financial President Officer 3 Green Bond Investor Presentation May 2024
Slide 4: Agenda
Agenda 1 Air Liquide at a glance 2 Sustainable Business Strategy 3 Sustainable Financing Framework 4 Group Credit Profile 5 Potential Bond Issue summary 6 Case Studies 4 Green Bond Investor Presentation May 2024
Slide 5: Air Liquide at a glance
Air Liquide at a glance 5 Green Bond Investor Presentation May 2024
Slide 6: A World Leader in Gases, Technologies and Services for Industry & Health
A World Leader in Gases, Technologies and Services for Industry & Health 72 67,800 >4m ~€27.6bn Customers Countries Employees of Sales in 2023 and Patients ~€3.1bn ~€6.4bn ~€92bn Net Profit in 2023 Cash Flow in 2023* Market Capitalization** * cash flow from operating activities before changes of worki
Slide 7: A Strong Business Model
A Strong Business Model 7 Green Bond Investor Presentation May 2024
Slide 8: A Resilient Business Model
A Resilient Business Model Large industries - 30%(1) Healthcare - 16%(1) ● Serving 2m patients & 20,000 hospitals ● Long-term contracts >15 years ● Growth driven by aging population and the rise of chronic diseases ● Take-or-Pay clauses & Monthly Fees ● A balanced mix of accreditations and mid-term
Slide 9: FY 2023 - Beneficial Mix of Geographies and Activities
FY 2023 - Beneficial Mix of Geographies and Activities 2023 Gas & Services Revenue €26.3bn 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 €27,6bn €1.0bn 2023 Grou
Slide 10: 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 10 Green Bond Investor Presentation May 2024
Slide 11: 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: Despite major signed projects 3 major Energy Transition LI projects: Well
Slide 12: 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 13: Sustainable Business Strategy
Sustainable Business Strategy 13 Green Bond Investor Presentation May 2024
Slide 14: Performing for What Matters
Delivering financial performance Delivering extra financial performance Performing for What Matters CO2 A Comprehensive Performance: extra-financial and financial performance are positioned as equally important and embedded in our governance 14 Green Bond Investor Presentation May 2024
Slide 15: Our convictions that drive our strategy
Our convictions that drive our strategy CO2 We have a role to decarbonize the planet We help move industry forward in their own decarbonization path We believe technologies are key in the fight against climate change For the planet Protecting the environment for future generations includes conserving
Slide 16: Pillars of our ESG strategy
Pillars of our ESG strategy Our sustainability priorities For the environment For health For all Contribute to a low-carbon society Improve the quality of life of patients Strive to act as a trusted partner and the environment as a whole. and access to medical oxygen. with all our stakeholders. Redu
Slide 17: Pioneering Decarbonization Solutions for a Sustainable Future
Pioneering Decarbonization Solutions for a Sustainable Future Decarbonizing our assets What we offer To our customers Carbon Capture Low-carbon gases Low-carbon Usage & Storage Low-Carbon Energy Sourcing processes and products ⅓ Low-C Air gases Low-C Hydrogen 3 levers ⅓ Technologies to decarbonize ⅓
Slide 18: Advancing for the Environment, CO2 emissions reductions
Advancing for the Environment, 2023: Significant Progress on CO2 emissions Reductions Our commitment by 2035 CO2 A -33% reduction in absolute Scopes 1 & 2 CO2 emissions vs. 2020 with an inflection point around 2025. 2023 achievements -4.9% Scopes 1 & 2 (m tonnes) 39.6 CO2 eq. emissions vs. 2020 -1.8 m
Slide 19: Actions along the value chain to decrease Scope 3 emissions
Actions along the value chain to decrease Scope 3 emissions Our commitment: by 2050, reach carbon neutrality across the entire value chain SUPPLIERS CUSTOMERS 2023 EMISSIONS Goods & services Fuels & feedstocks Transport of products Employee commuting Business travel Industrial Units Use & processing
Slide 20: Preserving water resources and biodiversity
Beyond fighting climate change: preserving water resources and biodiversity Water management Biodiversity preservation Implement a water management plan by 2025 for Air Liquide biodiversity high water use sites in high water stress areas. Commitments validated by Priority sites identified ● Reinforce
Slide 21: Advancing for Health, for patients and healthcare systems
Advancing for Health, for patients and for the sustainability of healthcare systems In mature economies In low-and-middle-income countries Improving the quality of Facilitating access to medical oxygen life of chronic patients at home 120 ~2 million Senegal patient-centric initiatives developed Keny
Slide 22: Advancing for all, building a safe and inclusive environment
Advancing for all, building a safe and inclusive environment, inside and out By 2025, 35% women among By 2025, 100% of employees to have By 2025, 100% of employees to Manager and Professional population. common basis of care coverage, have access to volunteering including death and disability benefit
Slide 23: 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 24: 2024 Sustainable Financing Framework
2024 Sustainable Financing Framework 24 Green Bond Investor Presentation May 2024
Slide 25: 2024 Sustainable Financing Framework: Context and Rationale
2024 Sustainable Financing Framework Context and Rationale of the update 2021 In line with its sustainability strategy and its new sustainable projects with a clear benefit to ‘ACT for a Sustainable future’ program decided in environment and society. In the aftermath, the 2021, Air Liquide establishe
Slide 26: 2024 Sustainable Financing Framework: Overview
2024 Sustainable Financing Framework Overview Air Liquide Sustainable Financing Framework is aligned with the Green Loan Principles (2023) and the Social Loan Principles (2021) overseen by the Loan Market Association (LMA) and with the Green Bond Principles (2021, GBP), the Social Bond Principles (2
Slide 27: Green eligible categories
2024 Sustainable Financing Framework See more details on eligibility criteria on the next slide Green eligible categories Air Gases Hydrogen aladeieiddddddd Carbon capture as a service Air separation units to deliver Low carbon and renewable hydrogen will To face the climate emergency, industries ar
Slide 28: Green Projects Eligibility Criteria
Green Projects Eligibility Criteria Eligible Green Projects Eligibility Criteria Production of air gases for the ● Manufacture of O2 and N2 through energy efficient Air Separation Units (ASUs) contributing to the value chain decarbonization of industries involved in the of industrial processes and/or
Slide 29: Social eligible categories
2024 Sustainable Financing Framework See more details on eligibility criteria on the next slide Social eligible categories Home healthcare and proximity /community care services As a leader in home healthcare in Europe, Air Liquide provides care at home for people with chronic diseases. Air Liquide’
Slide 30: Social Projects Eligibility Criteria
Social Projects Eligibility Criteria 1 Eligible Social Projects Eligibility Criteria Target Population Home Healthcare and Development of home healthcare Each and every person in need of medical Proximity / services and of proximity / care, including the most vulnerable. It Community Care community
Slide 31: Project Selection and Management of Proceeds
2024 Sustainable Financing Framework Project Selection and Management of Proceeds Process for Project Selection and Evaluation Management of proceeds ● Air Liquide Sustainable Financing working group, established in 2021, ● An amount equivalent to each financing net proceeds will be used to has been
Slide 32: Allocation and Impact Reporting
2024 Sustainable Financing Framework Allocation and Impact Reporting Allocation Report Impact Report Air Liquide will provide an annual update on the following: An Impact Report will also be provided to support the allocation report 1. The list of outstanding Green, Social and Sustainability financin
Slide 33: Group Credit Profile
Group Credit Profile 33 Green Bond Investor Presentation May 2024
Slide 34: Net Debt Ratios Under Control
Net Debt Ratios Under Control As of Dec 31th, 2023 (€m) 10,261 9,221 1.22x DEBT DEBT DEBT DEBT DEBT DEBT DEBT DEBT DEBT / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY 57% 90% 80% 69% 64% 56% 48% 42% 37% 34 Green Bond Investor Presentation May 2024
Slide 35: Strong Cash Flow Allocated to Capex and Dividends
Strong Cash Flow Allocated to Capex and Dividends As of Dec 31th, 2023 (€m) +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) Acquisit
Slide 36: A Well-Diversified Financing Structure
A Well-Diversified Financing Structure As of Dec 31th, 2023 Fixed / Variable rates Sources Currencies / Net Debt (gross debt) Private placements Commercial Others 15% 7% paper Fixed 4% rate JPY 3% EUR 52% 93% Bank debt 14% Others(1) 1% Bonds USD 30% Variable 74% Market debt rate 85% 7% (1) Others: pu
Slide 37: Debt Maturity Profile and Strong Available Liquidity
Debt Maturity Profile and Strong Available Liquidity As of Dec 31th, 2023 Group gross debt Available liquidity maturity profile €1.6bn €m Cash and Cash Equivalent 10,000 > 5 years 7,500 €5.4bn €3.8bn Confirmed 5,000 Between 1 and Credit Lines 5 years 2,500 < 1 year 0 37 Green Bond Investor Presentation
Slide 38: Diversified Capital Market Debt Well Spread Over Time
Diversified Capital Market Debt Well Spread Over Time As of Dec 31th, 2023 2046 2038 38 Green Bond Investor Presentation May 2024
Slide 39: "A" Long term Credit Rating Commitment
“A” Long term Credit Rating Commitment Scope Ratings added as a third rating agency in 2023 Long-term rating: A Short-term rating: A-1 Long-term rating: A2 Short-term rating: P-1 Long-term rating: A Short-term rating: S-1 Outlook: Stable on 28 July 2021 Outlook: Stable on 6 September 2022 Outlook: P
Slide 40: Green Bond Issue Summary
Green Bond Issue Summary 40 Green Bond Investor Presentation May 2024
Slide 41: Green Bond Issue Summary
Green Bond Issue Summary Air Liquide Finance (the “Issuer”), guaranteed by L’Air Liquide S.A. Categories allocation Carbon Capture Issuer / Guarantor (the “Parent Guarantor”) Form of Issue Green bond Senior, Unsecured Global Notes Air Gases Hydrogen Documentation EMTN programme HSBC & Natixis (ESG S
Slide 42: Case Studies
Case Studies 42 Green Bond Investor Presentation May 2024
Slide 43: Case Studies - Air Gases Category
Case Studies - Air Gases Category Building a Low-C Gas Production Platform in Bécancour Basin, Canada Air Liquide will build, own and operate a production and distribution infrastructure, including a new air separation unit (ASU) producing oxygen, nitrogen and argon; as well as a liquid storage capa
Slide 44: Case Studies - Hydrogen Category
Case Studies - Hydrogen Category Air Liquide Normand'Hy - Decarbonising industry in Normandy Located in the industrial zone of Port-Jérôme in Normandy, France, the large-scale electrolyzer project of Air Liquide Normand’Hy aims to supply renewable hydrogen for industrial applications, as well as fut
Slide 45: Appendix
Appendix 45 Green Bond Investor Presentation May 2024
Slide 46: Impact Reporting and Output indicators
Impact Reporting and Output indicators 1 Eligible Projects Description of eligible projects Possible Output Indicators Production of air gases for the decarbonization of industries involved in the energy transition and as necessary component in green activity value chain ● Energy saving of the ASU A
Slide 47: 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