Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — Q3 2022 Earnings Presentation
32 slides from Air Liquide Sa's earnings presentation, Oct 25, 2022
Slide 1: Q3 2022 Activity: Strong Sales Growth, High Level of Project Signings
Q3 2022 Activity Strong Sales Growth High Level of Project Signings François Jackow, Chief Executive Officer Jérôme Pelletan, Group Chief Financial Officer Mike Graff, Executive Vice President Pascal Vinet, Senior Vice President Paris, October 25, 2022 1 Q3 2022 Activity - October 25, 2022
Slide 2: Growth and Resilience
01 Growth and Resilience Well Positioned to Deliver Future Growth François Jackow - Chief Executive Officer 2 THIS DOCUMENT IS PUBLIC Q3 2022 Activity - October 25, 2022
Slide 3: Continued Strong Performance in Q3 2022
Continued Strong Performance in Q3 2022 Comparable IM Cash Flow/ Investment Growth Pricing Sales(1) Decisions 8 + % + 18% 24% € 1.1 bn Q3 2022 figures (1) Cash Flow from Operations before changes in WCR on Sales excluding energy pass through impact 3 THIS DOCUMENT IS PUBLIC Q3 2022 Activity - October
Slide 4: Resilient Business Model Addressing the Current Challenges
Resilient Business Model Addressing the Current Challenges 100% Energy passthrough in LI IM pricing addressing spike in >€1.4 energy price and inflation Energy impact €/MWh bn €m ~€1.7 bn ~€1bn ~€0.9bn FY 21 2019 2020 2021 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 European Natural Gas pric
Slide 5: Well Positioned to Deliver Future Growth
Well Positioned to Deliver Future Growth >€2.5bn of investment in Electronics over 4 years(1) €3.4bn Already 6 projects selected for European/national subsidies Strong & Diversified Carbon Kairos@C K6 - Cement plant Lime plant Capture Backlog Normand’Hy ELYgator CurtHyl Electrolysis 200 MW 200 MW 200
Slide 6: Strong Sales Growth, Active Projects Signing and Strong Backlog
02 Strong Sales Growth Active Projects Signing and Strong Backlog Jérôme Pelletan - Chief Financial Officer 6 THIS DOCUMENT IS PUBLIC Q3 2022 Activity - October 25, 2022
Slide 7: Continued Strong Sales Growth
Continued Strong Sales Growth Sales in €m Q3 21 Q3 22 Q3 22/21 Q3 22/21 YTD 22/21 As published Comparable Comparable Gas & Services 5,585 7,897 +41.4% +7.2% +7.2% Engineering & 81 115 +41.1% +37.3% +31.7% Construction Global Markets & 168 235 +39.5% +32.7% +20.3% Technologies Group Total 5,834 8,247
Slide 8: Q3 – Strong Americas, Mixed Europe
Q3 – Strong Americas, Mixed Europe Americas High growth across all activities ▪ Start-ups contributing to robust air gases volumes ● LI ▪ Strong H2 sales in Latam, turnarounds in U.S. FY 21: +7.6% YTD 22: +10.5% ▪ Higher pricing >+16% Sales ● IM ▪ +2% volumes excluding helium Q3 2022 Lower O2 for co
Slide 9: Q3 – Strong Asia driven by Electronics, Solid AMEI
Q3 – Strong Asia driven by Electronics, Solid AMEI Asia Buoyant EL, accelerating IM pricing over the region ▪ China +9% FY 21: +6.4% YTD 22: +7.3% ● LI ▪ Low demand in rest of Asia Sales ▪ Pricing >+9% Q3 2022 ● IM ▪ Improving volumes €1,474m ▪ High China, driven by pricing and small acquisitions ●
Slide 10: Q3 – Pursued Momentum in Industrial Merchant, Mixed Large Industries
Q3 – Pursued Momentum in Industrial Merchant, Mixed Large Industries Industrial Merchant Large Industries Record pricing, resilient volumes Strong Americas and solid Asia offset by slowing Europe Sales Sales FY 21: +8.4% YTD 22: +14.5% FY 21: +5.5% YTD 22: -4.8% Q3 2022 Q3 2022 €3,092m €3,112m ● Rec
Slide 11: Q3 – Buoyant Electronics, Very Robust Healthcare
Q3 – Buoyant Electronics, Very Robust Healthcare Electronics Healthcare Continued strong momentum in all segments Strong Home Healthcare FY 21: +7.0% YTD 22: +17.4% Sales Sales Q3 2022 Q3 2022 FY 21: +7.2% YTD 22: +3.1% €694m €999m ● >+21% growth in Carrier Gases, ESM(1) and E&I ● Normalizing Medica
Slide 12: Strong Comparable Growth supported by Geographic and Business Mix
Strong Comparable Growth supported by Geographic and Business Mix Q3 2022 Gas & Services comparable sales growth by Activities Europe +18% 0% Asia-Pacific +11% +21% Americas +13% Middle-East -10% Africa -1 % +5% Group Comparable sales growth +8 % 12 THIS DOCUMENT IS PUBLIC Q3 2022 Activity - October
Slide 13: Performance Focused in an Inflationary Environment
Performance Focused in an Inflationary Environment IM Pricing Efficiencies Portfolio Management +18.0% 4 divestitures YTD Middle-East €262m Mexico €400m 12 acquisitions YTD YTD Q3 2022 China 2016 2017 2018 2019 2020 2021 2022 ▪ Pursued acceleration in pricing ▪ Strong focus on operational U.S., Netherl
Slide 14: Accelerating IM Pricing
Accelerating IM Pricing Effective Management of Spike in Energy Cost & Inflation Pricing Actions Americas Bulk ▪ Contractual indexations Europe ▪ Strengthened price management to address high energy price and Asia-Pacific inflation Middle-East & Africa Cylinders Total +18.0% ▪ Targeted actions to addre
Slide 15: Active Projects Signing and Strong Backlog
Active Projects Signing and Strong Backlog Investment Opportunities (1) Investment Decisions (1) Investment Backlog (1) (2) >€3.0bn Financial Industrial Sustained level of investment High signing activity in Q3: Strong Backlog: opportunities: ▪ Strong in EL, major projects in Taiwan ▪ Many projects
Slide 16: Significant SU and RU Contribution to Sales
Significant SU and RU Contribution to Sales Start-up/Ramp-up Start-up date of major projects Sales Contribution(1) 2022 2023 Q1 Q2 Q3 Q4 YTD €288m Asia Q3 2022 Asia Asia US US Europe Asia €400 US FY 2022 - Guidance 425m Europe Europe Large Industries Electronics GM&T (1) Including the additional cont
Slide 17: Confirmed 2022 Guidance
Confirmed 2022 Guidance Assuming no significant economic disruption, 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 e
Slide 18: Appendix
03 Appendix 18 THIS DOCUMENT IS PUBLIC Q3 2022 Activity - October 25, 2022
Slide 19: Combined Effect
Combined Effect Energy Price Excluded from Energy Combined Included in Comparable Sales Impact Comparable Sales Included in Salesn-1 Volume Comparable Sales Volume “Normal” case Exceptional Q3 2022 case P Positive energy impact Pn P Non-significant Significant combined effect price Large variation Neg
Slide 20: Q3 2022 G&S Revenue Breakdown by Region
Q3 2022 G&S Revenue Breakdown by Region Europe Americas Europe 41% 37% €3.3bn Asia-Pacific Americas Africa €1.5bn €2.9bn Middle-East €7,897m €0.2bn Gas & Services Revenue 5% 20% 2% 9% 6% 32% 34% 28% 22% 22% Africa Middle-East Asia-Pacific 64% 3% 19% 56% 62% 35% 3% Industrial Merchant Large Industries
Slide 21: Maintained Strong Base Business, Significant SU/RU Contribution
Maintained Strong Base Business, Significant SU/RU Contribution Breakdown of G&S Sales Growth +12.6% +5.7% Base business 2019 2020 2021 2022 Start-ups, Ramp-ups, Site takeovers Base business Significant M&A See definitions in appendix 21 THIS DOCUMENT IS PUBLIC Q3 2022 Activity - October 25, 2022
Slide 22: Q3 - Americas
Q3 - Americas Industrial Merchant Large Industries Healthcare Electronics ▪ Higher pricing +16.1% ▪ Start-ups contributing to ▪ Lower Medical O2 for ▪ Strong contribution from ▪ +2% volumes excluding robust air gases volumes in covid-19 across the region Carrier Gases helium, in particular in bulk C
Slide 23: Q3 - Europe
Q3 - Europe Industrial Merchant Large Industries Healthcare ▪ Record high pricing +29.9% to address ▪ Volumes -6% ▪ Strong momentum in HHC driven by high Energy price and inflation [see appendix for combined effect] diabetes ▪ Slight daily volume growth, notably in ▪ Weak Steel and Chemicals ▪ Lower
Slide 24: Q3 - Asia-Pacific
Q3 - Asia-Pacific Industrial Merchant Large Industries Electronics ▪ Increased pricing across the region ▪ China +9%, driven by solid air gases ▪ All segments contributing to growth, +9.3% vs. DEC(1) impact in Q3 2021 >+20% in Carrier Gases, ESM(2) and E&I ▪ High China, driven by pricing and small ▪
Slide 25: Q3 - Solid E&C, Strong GM&T Driven by Biogas
Q3 - Solid E&C, Strong GM&T Driven by Biogas Engineering & Construction Global Markets & Technologies €108m Sales €189m Sales Q3 2022 Q3 2022 €115m €235m Comparable sales growth Total Sales(1) Comparable sales growth in Q3 22 +29% Strong order intake, Solid order intake vs. high Q3 21 €169m -44% led
Slide 26: Strong and Diversified Backlog at €3.4bn
Strong and Diversified Backlog at €3.4bn Decisions Start-ups (1) €1.3bn Yearly Sales Backlog after full Ramp-ups See definitions in appendix (1) Russian projects have been removed from Q3 2022 Backlog 26 THIS DOCUMENT IS PUBLIC Q3 2022 Activity - October 25, 2022
Slide 27: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue in €m Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 €/USD (165) (169) (19) +74 +141 +271 +373 €/JP¥ (14) (25) (10) (10) (5) (10) (16) €/SGD (7) (5) +1 +5 +10 +18 +24 €/BRL (23) (6) +1 +1 +9 +16 +14 €/Rmb (8) +1 +29 +40 +52 +59 +62 €/CAN (5) +5 +8 +13 +13 +17
Slide 28: Financing Structure as of June 30, 2022
Financing Structure as of June 30, 2022 Fixed / Variable rates Sources Maturity (gross debt) Private placements Commercial paper (2) 9% €m Fixed 12% 15,000 rate (2) 84% Bank debt > 5 years 10% 10,000 Others(1) 1% Between 1 and 5,000 5 years < 1 year Bonds 0 Variable 68% Market debt rate 89% 16% (1)
Slide 29: 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 30: Regular and Sustained performance
Regular and Sustained performance CAGR over 30 years(1) Revenue (in €m) EPS (2) (in €) +5.4% +6.7% Cash Flow (in €m) Dividend (2) (in € per share) +5.9% +8.3% (1) Calculated according to prevailing accounting rules over 30 years (2) Adjusted for the 2-for-1 share split in 2007, for free share attrib
Slide 31: For further information, please contact:
For further information, please contact: Upcoming events 2022 Full Year Results: February 16, 2023 Investor Relations www.airliquide.com IRTeam@airliquide.com Follow us on Twitter @AirLiquideGroup Corporate Headquarters: Phone: +33 (0)1 40 62 51 50 75, Quai d’Orsay 75321 Paris Cedex 07 Communication
Slide 32: 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