Air Products And Chemicals, Inc. · NYSE:APD

Air Products And Chemicals — Q3 2011 Earnings Presentation

16 slides from Air Products And Chemicals's earnings presentation, Jul 22, 2011

  1. Slide 1: Q3 FY'11 Earnings Conference Call

    Q3 FY’11 Earnings Conference Call July 22, 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: Q3 Financials

    Q3 Financials Fav/(Unfav) vs. ($millions, Continuing Operations) Q3 FY11 Q3 FY10 Q2 FY11 Sales $2,578 14% 3% - Volume 6% -% - Price 1% -% - Energy/RM pass-thru 2% 1% - Currency 5% 2% Operating Income $417 11% (2%) Operating Margin 16.2% (40bp) (80bp) Net Income $318 15% 3% Diluted EPS ($/share) 1.46

  4. Slide 4: Q3 EPS Analysis

    Q3 EPS Analysis Q3 FY11 Q3 FY10 Change As-reported diluted EPS $1.50 $1.17 - acquisition-related exp. - (0.11) - income from disc. ops. 0.04 - Adjusted cont. ops. EPS $1.46 $1.28 $0.18 Volume $0.14 Price / raw materials (0.02) $0.06 Cost (0.06) Higher equity affiliate income 0.03 Currency/FX 0.09 In

  5. Slide 5: Merchant Gases

    Merchant Gases Fav/(Unfav) vs. Q3 FY11 Q3 FY10 Q2 FY11 Sales $1,027 12% 1% - Volume 3% -% - Price 1% -% - Currency 8% 1% Operating Income $182 3% (2%) Operating Margin 17.7% (160bp) (60bp)  Strong volume growth in Asia  Positive price in North America and Asia, price challenges in Europe  Power,

  6. Slide 6: Merchant Gases: Q3 Sales Analysis vs PY

    Merchant Gases: Q3 Sales Analysis vs PY North America Europe Asia Sales % change 3% 14% 22% - Volume -% 2% 12% - Price 3% (1%) 3% - Currency - 13% 7%  Strong volumes across the Asia region, particularly in China  Positive North America and Asia pricing  Weak Europe healthcare and liquid/bulk pric

  7. Slide 7: Tonnage Gases

    Tonnage Gases Fav/(Unfav) vs. Q3 FY11 Q3 FY10 Q2 FY11 Sales $869 20% 9% - Volume 11% 5% - Energy/RM pass thru 7% 3% - Currency 2% 1% Operating Income $115 (4%) (5%) Operating Margin 13.2% (330bp) (190bp)  New projects and improved loadings drive volume growth  Higher maintenance costs and operatin

  8. Slide 8: Electronics & Performance Materials

    Electronics & Performance Materials Fav/(Unfav) vs. Q3 FY11 Q3 FY10 Q2 FY11 Sales $602 21% 5% - Volume 14% 3% - Price 3% 1% - Currency 4% 1% Operating Income $109 75% 19% Operating Margin 18.1% 550bp 220bp Electronics sales 24% 3% Performance Materials sales 18% 6%  Record sales, profit and margin

  9. Slide 9: Equipment & Energy

    Equipment & Energy Fav/(Unfav) vs. Q3 FY11 Q3 FY10 Q2 FY11 Sales $80 (31%) (30%) Operating Income $9 (59%) (62%) Sales Backlog $246 (18%) 34%  Lower sales due to lower ASU activity  Lower operating income on lower sales and prior year asset gain  Backlog up with first floating LNG exchanger order

  10. Slide 10: Outlook

    Outlook FQ4 2011 EPS $1.48-$1.53 • Higher Merchant and Tonnage volumes • Lower Tonnage maintenance costs • Higher tax rate FY 2011 EPS $5.70-$5.75 • CapEx forecast ~$1.6B-$1.7B • Tax rate guidance unchanged, ~25%-26% 10 Non-GAAP, see appendix for reconciliation.

  11. Slide 11: $15+ Billion in Sales by 2015

    2015 2015 by $15+ Billion in Sales 20% Operating Margin 15% Return on Capital Employed

  12. Slide 12: Appendix Slides

    Appendix Slides

  13. Slide 13: Appendix: Q3 FY11 Results and Guidance

    Appendix: Q3 FY11 Results and Guidance ($ Millions, except per share data) Non GAAP GAAP Measure Adjustments Non GAAP Measure $ % $ % Q311 vs. Q310 - Total Co. Cont. Ops Q311 Q310 Change Change Q310 (1) Q311 Q310 Change Change Sales 2,577.8 2,252.3 325.5 14% 2,577.8 2,252.3 325.5 14% Operating Incom

  14. Slide 14: Appendix: ROCE

    Appendix: ROCE $ Millions Quarter Ended Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Numerator Operating Income Reported 260.4 143.8 328.0 345.0 340.6 336.4 367.0 360.6 419.5 416.8 Equity Affiliate Income 27.0 28.5 32.2 26.9 32.2 32.5 35.3 27.8 31.7 39.7 Earnings before tax as reported 287

  15. Slide 15: Appendix: ROCE Tax Rate

    Appendix: ROCE Tax Rate Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Reported Income Before Taxes 257.4 144.8 332.3 340.3 343.3 338.9 371.5 357.4 421.8 430.0 Tax Expense 66.5 25.4 86.3 83.5 84.9 77.6 93.5 81.5 110.3 103.9 Tax Rate Reported 25.8% 17.5% 26.0% 24.5% 24.7% 22.9% 25.2% 22.8% 26.1% 2

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

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

Air Products and Chemicals — Q3 2011 Earnings Presentation on 6ix