Air Liquide SA · EURONEXT:AI
Air Liquide SA — Debt Investor Presentation (February 2017)
69 slides from Air Liquide SA's debt investor presentation, Feb 28, 2017
Slide 1: Credit Investor Presentation: Solid Performance in 2016 after Airgas Integration
Credit Investor Presentation Solid Performance in 2016 after Airgas Integration Paris, 28 February 2017
Slide 2: Agenda
Agenda 1 A Proven Business Model for Sustainability 2 FY 2016 Activity • Solid Operational Performance • Improved Investment Portfolio Profile • 2017: Delivering NEOS 3 Group Credit Profile 4 Appendix 2 28 February 2017 Credit investor The world leader in gases, technologies and services for Industr
Slide 3: A Proven Business Model for Sustainability
A Proven Business Model for Sustainability 3 28 February 2017 Credit investor The world leader in gases, technologies and services for Industry and Health
Slide 4: The World Leader in Gases, Technologies and Services
The World Leader in Gases, Technologies and Services €18.1bn Established in 1902 Sales 80+ Countries 16.7% OIR margin €1.8bn 67,000 3M+ Net Profit Employees Customers & patients 2016 figures 4 28 February 2017 Credit investor The world leader in gases, technologies and services for Industry and Heal
Slide 5: Ideally Positioned for Growth over the Long-term
Ideally Positioned for Growth over the Long-term EUROPE 38% EUROP E AMERICAS 36% €6.6bn AMERICAS ASIA-PACIFIC €17,331m €6.2bn €3.9bn GAS & SERVICES FY 2016 REVENUE 31% 36% 64% MIDDLE EAST & AFRICA ASIA 31% 5% 21% 3% 23% 32% 35% 6% 9% 3% 27% Industrial Merchant Large Industries Healthcare Electronics
Slide 6: Major Steps Successfully Achieved in 2016
Major Steps Successfully Achieved in 2016 Divestiture of Other Activities US divestitures ● ● Customer-centric ● Focus on ● Rights issue transformation Gas & Services Rights ● 2020 ambition and GMT ● € and US$ bonds issue Issue ● New organization ● Merger of operations 6 28 February 2017 Credit inve
Slide 7: 2016 Highlights
2016 Highlights Group Sales Cash Flow €bn 19 €18.1bn 18 17 +14.6% Strong performance 20.4% 16 of sales 15 14 2013 2014 2015 2016 Net Profit Gearing In line with guidance +5.0% Gearing back <100% 90% +2.7%* NB: 2015 figures have been restated to account for IFRS 5, discontinued operations 7 28 Februa
Slide 8: A Changing Environment
A Changing Environment Waste Evolving energy economics Urbanization Ageing management population EnergySharing and Rise of chronic War for talents Global diseases Changes in Health and Environment warming economy Low inflation and low Healthcare cost of money wellness TransitionSustainability Modera
Slide 9: Air Liquide Ambition
Air Liquide Ambition • Lead our industry • Deliver long-term performance • Contribute to sustainability 9 28 February 2017 Credit investor The world leader in gases, technologies and services for Industry and Health
Slide 10: Strategy: a Customer-centric Transformation
Strategy: a Customer-centric Transformation For Profitable Growth over the Long-term o Customer experience Operational Excellence o Cost competitiveness Selective Investments o Aligned with Air Liquide new business profile Open Innovation o Core o Disruptive o Digital workplace Network Organization
Slide 11: Financial Objectives
Financial Objectives Efficiencies >€300m on average/year(2) + Airgas synergies >$300m +6% to +8% CAGR 2016-2020(1) >10% Maintain after 5-6 years “A” range rating Capex/Sales 2017-2020: 10% to 12% (1) Including Airgas scope effect in 2017 contributing +2% to the CAGR (2) Over the 2017-2020 period 11
Slide 12: Corporate Sustainability Objectives
Corporate Sustainability Objectives FOR BETTER ENVIRONMENT e.g. FOR BETTER HEALTH • Help customers lower GHG* e.g. emissions • Grow with reduced carbon intensity • Foster clean mobility • Develop Healthcare e.g. • Continue to improve Safety • Do business responsibly • Extend Air Liquide Foundation *
Slide 13: A Strong Business Model
A Strong Business Model ESG(d) Electricity Chemical ESG(d) Natural gas Refinery Producer Filling center Water 1 Mutualize assets Metal Producer SMR(a) Home healthcare ASU(b) Patient ASU(b) 2 Liquefaction piggyback Electronics Customer Hospital Filling center On-site (c) Filling customer center Air L
Slide 14: Relying on a New Balanced Mix
Relying on a New Balanced Mix HEALHTCARE EUROPE AMERICAS LARGE INDUSTRY 19% 46% 24% 35% ELECTRONICS 2015 10% MIDDLE EAST INDUSTRIAL MARCHENT & AFRICA ASIA 36% 4% 26% HEALHTCARE EUROPE AMERICAS LARGE INDUSTRY 18% 38% 36% 29% ELECTRONICS 2016 9% MIDDLE EAST INDUSTRIAL MARCHENT & AFRICA ASIA 44% 3% 23%
Slide 15: Large Industries Strategy
Large Industries Strategy AIR LIQUIDE FUNDAMENTALS • Turn technology into long-term cash flow • Execute flawlessly • Expand opportunities • Focus on key projects geographies and markets • Continued outsourcing trend • Strengthen integration • Build on leadership in dynamic industrial industrial basi
Slide 16: Industrial Merchant Strategy
Industrial Merchant Strategy AIR LIQUIDE FUNDAMENTALS • Customer loyalty • Extend customer reach through Airgas & multi-channels • Multiple products serving multiple end • Enrich product, application and service mix markets through innovation • Optimized supply chain to ensure customer • Reinforce c
Slide 17: Industrial Merchant Strategy: Unique US Business Combination
Industrial Merchant Strategy Unique US Business Combination Primary production • Market coverage • Cost synergies Liquid bulk Liquid bulk Pipeline & • Improved customer service on-sites Fill plant Fill plant Fill plant • Supply chain optimization Bulk deliveries Direct delivery Retail Telesales e-co
Slide 18: Healthcare Strategy
Healthcare Strategy AIR LIQUIDE FUNDAMENTALS • Patient-centric services Home Health • Organic & external growth Care • Further expand the model • Strong back office • Accelerate innovation • Medicalization Medical Gases • Geographical expansion 18 28 February 2017 Credit investor The world leader in
Slide 19: Electronics Strategy
Electronics Strategy AIR LIQUIDE FUNDAMENTALS • Proprietary molecules developed with • Portfolio focused on added value products customers • Leverage on leadership position in key • Strong positions with major customers countries including China • Reduce exposure to cycles 19 28 February 2017 Credit
Slide 20: Global Markets & Technologies Strategy
Global Markets & Technologies Strategy AIR LIQUIDE FUNDAMENTALS • Develop innovative technologies • Further develop extreme cryogenics and aerospace • Open new markets on a global scale • Accompany energy transition with new value chains: H2 energy, biomethane, clean transportation 20 28 February 20
Slide 21: Regular and Sustained Performance
Regular and Sustained Performance 18 000 Revenue (in €m) +6.0% EPS(1) (in €) +7.2% 6 15 000 C AG R C AG R over 30 years(2) 5 over 30 years(2) 12 000 4 9 000 3 6 000 2 3 000 1 0 0 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 1986 1988 1990 1992 1994 1996 1998 2000 2
Slide 22: FY 2016 Activity: Solid Operational Performance
FY 2016 Activity Solid Operational Performance 22 28 February 2017 Credit Investor The world leader in gases, technologies and services for Industry and Health
Slide 23: Sales Growth Above Market
Sales Growth Above Market I N D U S TR I AL P R O D U C TI O N FY 2016 (1) +0.5% Sales in €m FY 15 FY 16 FY 16/15 FY 16/15 Q4 16/15 as published comparable (2) comparable (2) Gas & Services 14,752 17,331 +17.5% +2.7% +1.7% Engineering & Construction 775 474 -38.8% -38.0% -34.5% Global Markets & Tech
Slide 24: Stabilizing Economic Backdrop
Stabilizing Economic Backdrop FX Impact* Industrial Production Year on Year in % (3-month rolling average) 8% -1.4% +0.1% 6% FY 2016 Q4 2016 4% World United States 2% Euro Zone Energy Impact* 0% Developing Economies -2% -2.2% -4% +0.4% 2013 2014 2015 2016 FY 2016 Q4 2016 Source Coe-Rexecode as of Ja
Slide 25: Strong Growth Drivers in 2016
Strong Growth Drivers in 2016 +14% +5% +5% +8% AIRG AS LARG E G LOBAL MARKETS HEALTHCARE DEVELOP ING INTEG RATION IN DU STRIES & TECHNOLOG IES ECONOMIES Sales Growth excluding Currency, Energy and Airgas impact. Comparable sales growth for Americas for Q4 16 and FY16 are estimated due to the merger
Slide 26: Q4 - Better Europe, Stable Americas
Q4 - Better Europe, Stable Americas +2% FY +2% FY EUROPE +4% AMERICAS Q4 incl. Airgas FY 2016 FY 2016 +3% +3% +3% +2% +2% +120% €6,593m €6,230m +1% +0.5% +0.3% Q4 FY2015 Q1 Q2 Q3 Q4 FY2015 Q1 Q2 Q3 Q4 -0.2% -0,2% G&S Comparable Sales Growth(1) Improved Q4 IM still weak but positive signals • LI: goo
Slide 27: Q4 - Solid Fundamentals in Asia, Turnaround in MEA
Q4 - Solid Fundamentals in Asia, Turnaround in MEA +4% FY +8% FY +24% +45% +7% +6% +6% MIDDLE-EAST AS I A - P AC I F I C & AF R I C A FY 2016 +4% FY 2016 +3% +2% €3,936m €572m Q4 +0.5% FY2015 Q1 Q2 Q3 FY2015 Q1 Q2 Q3 Q4 -8% G&S Comparable Sales Growth(1) Positive underlying activity Yanbu turnaround
Slide 28: Q4 - Solid LI, Slightly Better IM
Q4 - Solid LI, Slightly Better IM +5% FY -2% FY Q4 incl. Airgas +9% +74% L AR G E INDUSTRIAL INDUSTRIES M E R C H AN T FY 2016 +5% +5% FY 2016 +4% +4% -1% -1% -1% €5,037m €7,565m -2% -3% FY2015 Q1 Q2 Q3 Q4 FY2015 Q1 Q2 Q3 Q4 G&S Comparable Sales Growth(1) Turnarounds compensated by one-off Positive
Slide 29: Q4 - Sound HC, Steady Underlying in EL
Q4 - Sound HC, Steady Underlying in EL +5% FY Q4 incl. Airgas +4% FY +8% +13% +17% +11% +9% H E AL T H C AR E +5% +5% +5% E L E C TR O N I C S FY 2016 +4% FY 2016 €3,111m €1,618m Q3 Q4 FY2015 Q1 Q2 -1% FY2015 Q1 Q2 Q3 Q4 -3% G&S Comparable Sales Growth(1) Solid organic growth Growth of recurring sal
Slide 30: E&C Low, GMT Developing
E&C Low, GMT Developing E&C GMT 936 389 280 405 In €m In €m 300 300 266 255 243 Order 200 172 200 161 Intake(1) 144 119 113 104 100 88 85 100 73 53 55 44 35 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2015 2016 Sales €775m €474m €292m €330m (1) Group and Third Party Orders. 30 28 F
Slide 31: OIR Margin Reflecting New Mix with Airgas Consolidation
OIR Margin Reflecting New Mix with Airgas Consolidation In €m 2015 2016 FY 16/15 Revenue 15,819 18,135 +14.6% Purchases (5,890) (6,693) +13.6% Personnel expenses (2,929) (3,659) +19.6% Other net income and expenses (2,785) (3,172) Operating profit before depreciation 4,215 4,611 +9.4% Airgas Depreci
Slide 32: Level of Efficiencies Aligned with NEOS
Level of Efficiencies Aligned with NEOS Breakdown of Efficiencies In €m €315m 350 300 Procurement Industrial 250 Others 200 150 100 Industrial Merchant 50 Large Industries 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Healthcare Electronics Objective Efficiencies E&C, GMT, Corporate NB: 2015 f
Slide 33: First Airgas Synergies Delivered in 2016
First Airgas Synergies Delivered in 2016 Cost Synergies on track PROCESS $45m CYLIN DER OP ERATION S BULK OP ERATIONS & BACK OFFICE PROCUREMENT • 18 site closures • Sourcing • Business & • Leverage on IT administrative • Logistics • Primary process review • Shared services optimization production •
Slide 34: 2017-2019: Synergies > US$300m Confirmed
2017-2019: Synergies > US$300m Confirmed Cost Synergies Revenue Synergies • Cross-selling PROCESS CYLINDER BU LK & BACK • Product availability OP ERATIONS OP ERATION S OFFICE PROCUREMENT • Gas applications • Small on-site generators Timeline for delivery of synergies US$45m >US$130m >US$60m >US$65m
Slide 35: Net Profit Up +5.0%
Net Profit Up +5.0% 2016 In €m 2015 2016 FY 16/15 one-off costs fully Revenue 15,819 18,135 +14.6% covered Operating Income Recurring 2,856 3,024 +5.9% Other non-recurring operating income & expenses (123) 36 Operating Income 2,733 3,060 +12.0% Net financial costs and other net financial expenses (2
Slide 36: FY 2016 Activity: Improved Investment Portfolio Profile
FY 2016 Activity Improved Investment Portfolio Profile 36 28 February 2017 Credit Investor The world leader in gases, technologies and services for Industry and Health
Slide 37: Improved Investment Portfolio Profile
Improved Investment Portfolio Profile Investment FY 2016 Investment FY 2016 Start-up/ Opportunities(1) Decisions(1) Ramp-up Sales Growth 12 months portfolio Contribution €2.4bn €2.2bn €2.2bn ~€225m 2015 2016 • Smaller projects • Increased selectivity on • ASUs in Americas and • Lower risk projects A
Slide 38: Investment Backlog Adjusting for Start-ups
Investment Backlog Adjusting for Start-ups Investment Backlog(1) FY 2016 Decisions Start-ups €2.8bn €2.7bn €2.3bn €2.1bn ~€ 0.8bn Dec 2013 Dec 2014 Dec 2015 Decisions Start-ups Dec 2016 Yearly Sales Backlog(1) after full Ramp-ups (1) See definitions in appendix. 38 28 February 2017 Credit Investor T
Slide 39: Focus on ROCE
Focus on ROCE ROCE In €m >10% 10% ROCE after 5-6 years 7.8%* • Short-term impact of Airgas acquisition Value 350 bps 5% creation • Expected lower capex on sales • Focus on delivering efficiencies WACC and synergies 0% 2016 2017… * Published ROCE vs. “pro forma” ROCE of 6.9% 39 28 February 2017 Credi
Slide 40: FY 2016 Activity: 2017: Delivering NEOS
FY 2016 Activity 2017: Delivering NEOS 40 28 February 2017 Credit Investor The world leader in gases, technologies and services for Industry and Health
Slide 41: 2016: Transition to NEOS
2016: Transition to NEOS LI IM HC EL GMT G ROW TH CUSTOMER P REMIUM NEW & CASH REACH & EXP ANSION VALUE BUSINESSES COMPETITIVENESS • +5.4% • >US$45m • >+13% • >+19% • >+13% sales growth of synergies sales growth Advanced sales growth 2016 • New long-term • Airgas including Airgas Materials • Major c
Slide 42: 2017 Outlook
2017 Outlook ● Acquisition fully completed ● Steady underlying activity 2016 ● Solid operational performance 2017 ● Positive signals from ● Improved investment portfolio customers profile ● Delivering expected ● Transition to NEOS efficiencies and synergies ● Focus on value creation “Assuming a comp
Slide 43: Group Credit Profile
Group Credit Profile 43 28 February 2017 Credit Investor The world leader in gases, technologies and services for Industry and Health
Slide 44: Gearing at 90%
Gearing at 90% GEARING <1,019> +3,365 90% <11,580> CASH FLOW <563> <15,368> GEARING +30.5% 57% <7,239> +3,523 <2,028> +173 Net Debt Cash Flow WCR Net Airgas Dividends Rights Currency Net Debt 31 Dec 2015 + Others investments acquisition Issue & Scope 31 Dec 2016 excl. Airgas net of acquisition(1) di
Slide 45: Net Debt ratios under control
Net Debt ratios under control In €m 16 000 14 000 12 000 10 000 8 000 3,3x 3,3 6 000 1,65 1,49 1,47 1,61 1,59 1,63 1,70 4 000 2 000 2009 2010 2011 2012 2013 2014 2015 2016 DEBT DEBT DEBT DEBT DEBT DEBT DEBT DEBT / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY 63% 55% 53% 58%
Slide 46: Reduced Cost of Debt
Reduced Cost of Debt Net debt by currency Average cost of net debt OTHERS RMB 7% 5,00% 5% EUR JPY 25% 4% 4,00% 3.7% -80bps 3,00% 2.9% USD 2,00% 2008 2009 2010 2011 2012 2013 2014 2015 2016 59% 46 28 February 2017 Credit Investor The world leader in gases, technologies and services for Industry and H
Slide 47: Financing Structure
Financing Structure As of 31 December 2016 Sources Fixed/variable rates (gross debt) BANK DEBT OTHERS(1) 9% MARKET DEBT FIXED COMMERCIAL 90% RATE PAPER 1% 4% 84% PRIVATE PLACEMENTS 11% 75% BONDS VARIABLE RATE 16% (1) Others: Finance leases and put options granted to minority shareholders. 47 28 Febr
Slide 48: Prudent Liquidity Management
Prudent Liquidity Management As of 31 December 2016 Available liquidity Group gross debt maturity profile In €m CASH AND CASH EQUIVALENT 16000 33% > 2021 12000 €4.6bn CONFIRMED 8000 CREDIT LINES 67% 2018 à 2021 4000 2017 • Holdings’ Confirmed Credit Lines are a mix of bilateral 0 facilities and a €1
Slide 49: Diversified market debt well spread over time
Diversified market debt well spread over time As of 31 December 2016 In €m 1 800 1 600 1 400 500 500 500 1 200 500 1 000 949 237 308 712 800 640 285 1 186 116 379 712 600 190 1 000 712 400 750 457 565 500 500 489 500 500 200 300 170 150 122 95 100 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Slide 50: “A” Long Term Credit Rating Commitment
“A” Long Term Credit Rating Commitment ■ Long-term rating: A- ■ Long-term rating: A3 (first long-term rating) ■ Short-term rating: A-2 ■ Short-term rating: P-2 ■ Outlook: Stable on May 24, 2016 ■ Outlook: Stable on May 24, 2016 ■ Rationale: ■ Rationale: ○ “Excellent Business Risk as well as adequate
Slide 51: Appendix
Appendix 51 28 February 2017 Credit Investor The world leader in gases, technologies and services for Industry and Health
Slide 52: 2017: Delivering NEOS
2017: Delivering NEOS ● Airgas synergies ● “LI Connect” ● Open innovation ● Efficiencies ● i-Lab initiatives ● ALIAD ● Customer reliability ● Connected cylinder ● Hydrogen Council ● Focus on ROCE ● e-Health ● Biogas 52 28 February 2017 Credit Investor The world leader in gases, technologies and serv
Slide 53: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue Currency In €m Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 €/US$ +109 +129 +110 +91 +14 (14) (3) +10 €/CNY +52 +76 +52 +36 (10) (28) (23) (20) €/JP¥ +11 +9 +3 +17 +14 +22 +42 +30 Others +78 +76 +4 (22) (89) (98) (32) (17) Total currency impact +250 +2
Slide 54: Consolidated P&L
Consolidated P&L In €m 2015 2016 Revenue 15,819 18,135 Cost of Goods (11,604) (13,524) Operating income recurring before depreciation 4,215 4,611 Depreciation and amortization expense (1,359) (1,587) Operating income Recurring 2,856 3,024 Net non-recurring operating income (123) 36 Operating income
Slide 55: Consolidated Balance Sheet
Consolidated Balance Sheet - In €m ASSETS 31/12/15 31/12/16 EQUITY AND LIABILITIES 31/12/15 31/12/16 Goodwill 5,730 13,890 Shareholders’ equity 12,406 16,742 Minority interests 365 383 Fixed assets 16,555 22,003 Other non-current assets* 936 960 Total equity 12,771 17,125 Total non-current assets 23
Slide 56: Cash Flow Statement
Cash Flow Statement In €m 2015 2016 Funds provided by operations 3,150 3,523 Changes in Working Capital (258) 331 Other items (60) (158) Net cash from operating activities 2,832 3,696 Purchase of PPE* and intangible assets (2,028) (2,259) Purchase of financial assets and the impact of changes in sco
Slide 57: Growth in Q4 G&S Revenue
Growth in Q4 G&S Revenue Comparable Published growth(1) growth in €m (1) +1,081 4,930 5 000 +1.7% +30.8% 4 500 4 000 3,768 +63 +15 +3 3 500 +0.4% +0.0% +28.7% 3 000 2 500 2 000 0 Q4 2015 Comparable (1) growth Energy Currency Significant perimeter Q4 2016 (1) Comparable growth: excluding Currency, En
Slide 58: Revenue Analysis by Quarter and by Geography
Revenue Analysis by Quarter and by Geography Sales in €m Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q4 16/15 Q4 16/15 comparable(1) Europe 1,713 1,614 1,611 1,601 1,767 +3.2% +4.2% Americas 899 824 1,361 2,042 2,003 +122.9% -0.2% Asia-Pacific 995 966 954 997 1,019 +2.4% +0.5% Middle-East and Africa 161 144 144 1
Slide 59: Revenue Analysis by Quarter and by Business Line
Revenue Analysis by Quarter and by Business Line Sales in €m Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q4 16/15 Q4 16/15 comparable(1) Large Industries 1,324 1,207 1,181 1,261 1,388 +4.8% +4.2% Industrial Merchant 1,314 1,238 1,726 2,308 2,293 +74.5% -1.1% Healthcare 725 695 756 814 846 +16.7% +4.8% Electronics
Slide 60: G&S Revenue Growth by Quarter and by Impact
G&S Revenue Growth by Quarter and by Impact Growth as Significant Comparable Natural Gas Electricity Currency published perimeter growth (1) Q1 2015 + 6.2% - 3.4% - 0.2% + 7.3% 0.0% + 2.6% Q2 2015 + 9.3% - 2.2% - 0.5% + 8.5% 0.0% + 3.5% Q3 2015 +7.4% -1.6% -0.4% + 4.9% 0.0% + 4.5% Q4 2015 +4.9% -3.2
Slide 61: Europe
Europe Q4 Gas & Services Sales: €1,767m INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE • Confirmed bulk volume increase • Good volumes in air gases • Steady organic growth • Encouraging signs in cylinder • Positive one-off • Low contribution from bolt-on M&A business • Robust growth in Eastern Euro
Slide 62: Americas
Americas Q4 Gas & Services Sales: €2,003 m INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE ELECTRONICS • Still weak in North America • Record volumes of air • Dynamic South America • Low E&I sales • Better bulk volumes in US gases in US • Solid organic growth and • Volumes low in Energy, • Several H
Slide 63: Asia-Pacific
Asia-Pacific Q4 Gas & Services Sales: €1,019m INDUSTRIAL MERCHANT LARGE INDUSTRIES ELECTRONICS • Back to slight growth • Several maintenance • Flat growth • Bulk & cylinder volume turnarounds • Low E&I & ESM in NE Asia growth >+9% in China • Ramp-up of a new unit in • High neon price in Q4 2015 Aust
Slide 64: Industrial Merchant Pricing
Industrial Merchant Pricing Europe -0.7% -0.7% Americas +2.6% +2.5% Asia-Pacific +0.9% -0.3% Middle-East and Africa +3.7% +1.6% TOTAL Q4 2016 +0.9% FY 2016 INDUSTRIAL +0.5% MERCHANT 64 28 February 2017 Credit Investor The world leader in gases, technologies and services for Industry and Health
Slide 65: Operating Margin – Energy Effect
Operating Margin – Energy Effect Group, in €m 2015 2016 Revenue 15,819 18,135 Incl. energy effect -406 -356 Operating income recurring 2,856 3,024 Operating margin 18.1% 16.7% Operating margin excluding energy 16.4% Gaz & Services, in €m 2015 2016 Revenue 14,752 17,331 Incl. energy effect -406 -356
Slide 66: Operating Margin (OIR/Revenue)
Operating Margin (OIR/Revenue) H1 15 H1 15 H2 15 H2 15 2015 2015 Group 17.7% 18.4% 18.1% 2015 Gas & Services 19.4% 20.7% 20.1% H1 16 H1 16 H2 16 H2 16 2016 2016 Group 17.0% 16.4% 16.7% 2016 Gas & Services 19.1% 18.3% 18.7% OIR Margin Reflecting New Mix with Airgas Consolidation NB: 2015 figures have
Slide 67: 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 replac
Slide 68: Gas & Services Industrial Capex by Geography
Gas & Services Industrial Capex by Geography G&S 2016 capex(1) €2.1bn G&S capex(1) / sales AMERICAS 36% 2015 2016 Europe 8.1% 8.6% EUROPE Americas 20.3% 11.8% 28% Asia-Pacific 12.3% 15.2% Middle-East and Africa 23.1% 27.1% Total 12.8% 11.9% ASIA MIDDLE EAST 29% & AFRICA 8% (1) Gross industrial inves
Slide 69: For further information, please contact
For further information, please contact: Investor Relations Group Financing and Rating Aude Rodriguez + 33 (0)1 40 62 57 08 Jacques Molgo + 33 (0)1 40 62 57 75 Louis Laffont + 33 (0)1 40 62 57 18 Aude Revel + 33 (0)1 40 62 56 64 Erin Sarret + 33 (0)1 40 62 57 37 Aurélien de Chomereau + 3
Air Liquide — Debt Investor Presentation (February 2017) on 6ix