Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — Q1 2016 Earnings Presentation
38 slides from Air Liquide Sa's earnings presentation, Apr 26, 2016
Slide 1: 2016 Q1 Activity: Solid Comparable G&S Sales Growth
2016 Q1 Activity Solid Comparable G&S Sales Growth Paris, 26 April 2016
Slide 2: 2016 Q1 Activity
2016 Q1 Activity Paris, 26 April 2016 Fabienne Lecorvaisier l Chief Financial Officer Maintained business focus • Solid comparable G&S sales growth at +4.2%, with strong Forex & Energy impacts • Efficiencies in line; selective investments Airgas transaction on track 2 26 April 2016 Q1 2016 Activity
Slide 3: Solid Comparable G&S Sales Growth
Solid Comparable G&S Sales Growth (1) +0.4% Q1 2016 Q1 15 Q1 16 Q1 16/15 Q1 16/15 Sales in €m as published comparable (2) Gas & Services (3) 3,614 3,548 -1.8% +4.2% Engineering & Construction (3) 177 124 -30.2% -28.3% Global Markets & Technologies (3) 58 65 +11.2% +11.1% Other activities 144 135 -6.
Slide 4: Reversal of Forex to Negative Headwinds
Reversal of Forex to Negative Headwinds Impact of foreign exchange on G&S sales 10% 8% 6% 4% 2% 0% -2% -2% -4% -6% 4 26 April 2016 Q1 2016 Activity World leader in gases, technologies and services for Industry and Health
Slide 5: Increased Negative Energy Impact
Increased Negative Energy Impact Henry Hub day ahead Natural Gas price in USD per Million Btu 3,5 2015 2016 3 Natural Gas 2,5 Average Q1 15 -31% 2.9 USD/mmBTU 2 1,5 Average Q1 16 2.0 USD/mmBTU 1 1/15 4/15 7/15 10/15 1/16 4/16 -4% German Day ahead Electricity price in EUR per MWh 45 2015 2016 40 35 E
Slide 6: Strong Growth Drivers
Strong Growth Drivers +9% +7% Large Industries Asia - Pacific +13% +14% Electronics Developing Economies Gas & Services sales growth, excluding currency, energy and significant M&A impacts. 6 26 April 2016 Q1 2016 Activity World leader in gases, technologies and services for Industry and Health
Slide 7: Sustained Start-ups & Ramp-ups Contribution
Sustained Start-ups & Ramp-ups Contribution G&S quarterly growth analysis 7% 2014 2015 2016 5% 4 Start-ups in Q1 16 3% Base business Start-ups, 1% Ramp-ups, Site takeovers, Small acquisitions -1% Significant M&A -3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 G&S growth over the first 3 quarters of 2015 are restated
Slide 8: Europe Positive, LI Growth in Americas
Europe Positive, LI Growth in Americas G&S comparable sales growth(1) Europe Q1 2016: €1,614m FY 15: +3% +2% Volume ramp-ups in LI +5% +5% +3% IM: resilient Food Processing, +1% low Fabrication Q1 Q2 Q3 Q4 Q1 Steady organic growth in HC Americas Q1 2016: €824m FY 15: +0.3% +1% LI: strong air gases v
Slide 9: Dynamic Asia, Continued Ramp-ups in MEA
Dynamic Asia, Continued Ramp-ups in MEA G&S comparable sales growth(1) Asia-Pacific Q1 2016: €966m FY 15: +6% +7% Vigorous China +11% Sustained growth in Electronics +7% +5% +5% +6% >+20% Bulk and packaged gas Q1 Q2 Q3 Q4 Q1 volumes up Middle-East & Africa Q1 2016: €144m FY 15: +24% +45% Yanbu H2 pl
Slide 10: Pursued High Growth in LI, Low IM
Pursued High Growth in LI, Low IM G&S comparable sales growth(1) Large Industries Q1 2016: € 1,207m Pursued start-ups / ramp-ups in all regions FY 15: +5% +9% +9% Strong volumes in air gases +6% +5% +0.2% 34% Q1 Q1 Q2 Q3 Q4 Q1 2016 Industrial Merchant Q1 2016: € 1,238m 35% Contrasted end markets: FY
Slide 11: Robust Organic Growth in HC, Very Strong EL
Robust Organic Growth in HC, Very Strong EL G&S comparable sales growth(1) Healthcare Q1 2016: € 695 m FY 15: +8% +4% Solid organic growth Lower contribution from bolt-on +7% +7% +8% +8% acquisitions Dynamic Hygiene 20% Q1 Q2 Q3 Q4 Q1 Q1 11% 2016 Electronics Q1 2016: € 408 m FY 15: +11% +13% +14% Ve
Slide 12: Slow Down in E&C, Development in GM&T
Slow Down in E&C, Development in GM&T E&C GM&T In €m 936 In €m 280 Order 400 400 Intake (1) 266 255 243 200 172 200 113 73 88 85 44 35 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Sales € 177 M € 124 M € 58 M € 65 M (1) Group and Third Party orders 12 26 April 2016 Q1 2016 Activ
Slide 13: Q1 2016 Performance and Cost & Capex
Q1 2016 Performance Q1 2016 Cost & Capex Solid G&S comparable growth Q1 Efficiency gains +4.2% € 63m Cash flow on sales (1) Efficiencies in line with objectives 18.0% Solid G&S cash flow Net Capex € 501m (1) Operating Cash Flow before change in Working Capital Requirements, as of 31 March 2016 13 26
Slide 14: Balanced Portfolio of Selective Investments
Balanced Portfolio of Selective Investments Investment Q1 2016 Q1 2016 Opportunities (1) Investment Start-up / ramp-up - decisions(1) sales growth 12 months portfolio contribution €2.3bn €590m ~ €105m Longer path to ASU in China 4 start-ups decision Investment in Yanbu and Dormagen: Innovation from
Slide 15: Stable Backlog to Fuel Future Growth
Stable Backlog to Fuel Future Growth Investment Backlog (1) Q1 2016 € 2.7bn € 2.8bn € 2.3bn € 2.2bn Decisions (1) Start-ups ~€0.9bn Yearly Sales Backlog (1) Dec 2013 Dec 2014 Dec 2015 Decisions Start-ups March 2016 after full Ramp-ups (1) See definitions in appendix. 15 26 April 2016 Q1 2016 Activit
Slide 16: Airgas: Transaction On Track
Airgas: Transaction On Track Paris, 26 April 2016 Pierre Dufour l Senior Executive Vice-President Possible closing by late Q2 Integration plan moving forward Confirmed synergies Fined-tuned refinancing, reduced range of capital increase
Slide 17: Awaiting Final Clearance
Awaiting Final Clearance TRANSACTION CLOSING Regulatory Review Integration Divestitures i 2015 2016 Q4 Q1 Q2 Q3 Transaction Airgas Other Anticipated Air Liquide Announcement Shareholder Regulatory US Antitrust Capital (17/11) Approval Approvals Clearance Markets Day (23/02) 17 26 April 2016 Q1 2016
Slide 18: Integration Plan Moving Forward
Integration Plan Moving Forward Integration plan for the post-closing entity North Division West Division Central Division Radnor, PA Industrial Merchant, Healthcare South Division Dallas, TX Houston, TX Future Business Centres Electronics Large Industries Americas Hub Air Liquide Delaware R&D Cente
Slide 19: Confirmed >$300m Synergies
Confirmed >$300m Synergies Cost & Efficiency synergies 2 to 3 years PRODUCTION & DISTRIBUTION SITES & ADMINISTRATION ~70% • Sourcing: internalize Airgas • Optimize administrative costs ~70% supply • Align and improve processes • Increase asset loading • Optimize distribution Volume growth synergies
Slide 20: Fine-tuned Refinancing, Reduced Equity Range
Fine-tuned Refinancing, Reduced Equity Range €/$ contingent Bridge Refinancing hedging loan 23 Feb Closing Airgas Rights issue Shareholder & Approval Bonds issue Deal Financing(1) - € 9.9bn/ US$ 10.7bn(2) Equity € 3-3.5bn US$ Bonds (1) Excluding existing Airgas debt, either assumed or refinanced (2)
Slide 21: 2016 Outlook
2016 Outlook Paris, 26 April 2016 Pierre Dufour l Senior Executive Vice-President
Slide 22: 2016 Outlook
2016 Outlook Q1 2016 ■ Maintained business focus Solid comparable G&S sales growth at +4.2% ■ Airgas acquisition on track, awaiting final clearance 2016 Excluding the impact of Airgas acquisition and financing, and assuming a comparable environment, Air Liquide is confident in its ability to deliver
Slide 23: Air Liquide
AIR LIQUIDE
Slide 24: Q1 2016 Appendix
Q1 2016 Appendix 24 26 April 2016 Q1 2016 Activity World leader in gases, technologies and services for Industry and Health
Slide 25: 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 replacements or
Slide 26: 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 €/USD +109 +129 +110 +91 +14 €/CNY +52 +76 +52 +36 (10) €/JP¥ +11 +9 +3 +17 +14 Others +78 +76 +4 (22) (89) Total currency impact +250 +290 +169 +122 (71) Average rate Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 €/USD 1.13 1
Slide 27: Growth in Q1 2016 G&S Revenue
Growth in Q1 2016 G&S Revenue in €m 4000 +149 <144> 3750 <71> 3,614 -4.0% 0 3,548 3500 0 -2.0% 3250 +4.2% comparable (1) 3000 2750 2500 0 2250 Q1 2015 Comparable Energy Currency Significant Q1 2016 growth (1) perimeter (1) Excluding currency, energy and significant M&A impacts. 27 26 April 2016 Q1 2
Slide 28: Revenue Analysis by Quarter and by Geography
Revenue Analysis by Quarter and by Geography Sales in €m Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q1 16/15 Q1 16/15 comparable(1) Europe 1,684 1,682 1,670 1,713 1,614 -4.2% +1.6% Americas 888 911 897 899 824 -7.2% +1.1% Asia-Pacific 936 956 963 995 966 +3.2% +7.1% Middle-East and Africa 106 139 152 161 144 +36
Slide 29: Revenue Analysis by Quarter and by Business Line
Revenue Analysis by Quarter and by Business Line Sales in €m Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q1 16/15 Q1 16/15 comparable(1) Large Industries 1,264 1,301 1,312 1,324 1,207 -4.5% +8.6% Industrial Merchant 1,309 1,313 1,293 1,314 1,238 -5.4% -2.6% Healthcare 685 697 692 725 695 +1.4% +4.1% Electronics 3
Slide 30: G&S Revenue Growth by Quarter and by Impact
G&S Revenue Growth by Quarter and by Impact Growth as Natural Electricity Currency Significant Comparable published Gas perimeter growth(1) Q2 2014 - 2.7% - 0.8% - 4.1% - 1.4% + 3.6% Q3 2014 - 0.1% - 1.2% - 1.1% - 1.3% + 3.5% Q4 2014 + 2.8% - 1.2% + 1.8% - 0.9% + 3.1% Q1 2015 + 6.2% - 3.4% - 0.2% +
Slide 31: Q1 2016 Revenue Breakdown by Region
Q1 2016 Revenue Breakdown by Region Middle-East and Africa Gas & Services 4% Q1 2016 Revenue: €3,548m Asia- 27% 46% Pacific Europe 23% Americas Europe: €1,614m Americas: €824m Asia-Pacific: €966m 3% 11% 28% 31% 10% 35% 36% 34% 5% 32% 44% 31% Large Industries Industrial Merchant Healthcare Electronic
Slide 32: Europe in Q1 2016
Europe in Q1 2016 ■ Healthcare Q1 Gas & Services sales: € 1,614 m Solid organic growth Electronics Lower contribution from acquisitions Dynamic Hygiene 3% Large Industries 31% 34% Healthcare ■ Industrial Merchant Increased liquid volumes, continuous price pressure 32% Industrial Merchant Cylinder ac
Slide 33: Americas in Q1 2016
Americas in Q1 2016 ■ Industrial Merchant Q1 Gas & Services sales: € 824 m North America: bulk volumes Healthcare impacted by slowdown in OWS, Metal Electronics 10% Fab and Machinery 11% Industrial Stable sales in Brazil despite low IP Merchant 44% ■ Large Industries Large 35% Strong air gases volum
Slide 34: Asia-Pacific in Q1 2016
Asia-Pacific in Q1 2016 ■ Large Industries Q1 Gas & Services sales: € 966 m Continued ramp-ups in China Healthcare Strong air gases volumes 5% Large Industries 28% 36% ■ Industrial Merchant Electronics Strong sales and volumes in developing economies 31% Better Australia, lower Japan Industrial Merc
Slide 35: Industrial Merchant Pricing
Industrial Merchant Pricing Q1 2016 FY 2015 -0.6% Europe -0.6% +2.7% Americas +4.0% -0.6% Asia-Pacific -2.0% +1,0% Middle-East and Africa +0.8% +0.5% Total Industrial Merchant +0.6% 35 26 April 2016 Q1 2016 Activity World leader in gases, technologies and services for Industry and Health
Slide 36: Regular and Sustained Performance
Regular and Sustained Performance Revenue (in €m) EPS (1) (in €) 6 15 000 +5.8% CAGR over 30 years(2) +7.4% CAGR over 30 years(2) 5 12 500 4 10 000 7 500 3 5 000 2 2 500 1 0 0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 1985 1987 1989 1991 1993 1995 1997 1999 2001
Slide 37: www.airliquide.com
For further information, please contact: Investor Relations Communications Aude Rodriguez + 33 (0)1 40 62 57 08 Anne Bardot + 33 (0)1 40 62 50 93 Erin Sarret + 33 (0)1 40 62 57 37 Annie Fournier + 33 (0)1 40 62 51 31 Louis Laffont + 33 (0)1 40 62 57 18 Caroline Philips + 33 (0)1 40 62 50 84 Jérôme Z
Slide 38: Air Liquide
AIR LIQUIDE