Air Products And Chemicals, Inc. · NYSE:APD

Air Products And Chemicals — Q3 2010 Earnings Presentation

19 slides from Air Products And Chemicals's earnings presentation, Jul 22, 2010

  1. Slide 1: Q3 FY'10 Earnings Conference Call

    Q3 FY’10 Earnings Conference Call July 22, 2010

  2. Slide 2: Forward Looking Statement

    Q3 FY’10 Earnings Forward Looking Statement This presentation contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including earnings guidance and comments regarding the Company’s proposed acquisition of Airgas, Inc. These f

  3. Slide 3: Additional Information

    Q3 FY’10 Earnings ADDITIONAL INFORMATION On February 11, 2010, Air Products Distribution, Inc. (“Purchaser”), a wholly owned subsidiary of Air Products and Chemicals, Inc. ("Air Products"), commenced a cash tender offer for all the outstanding shares of common stock of Airgas, Inc. ("Airgas") not al

  4. Slide 4: Q3 Financials

    Q3 FY’10 Earnings Q3 Financials* Fav/(Unfav) vs. ($millions, Continuing Operations) Q3 FY10 Q3 FY09 Q2 FY10 Sales $2,252 14% -% - Underlying business 12% 4% - Energy/RM pass-thru 3% (2%) - Currency (1%) (2%) Operating Income $374 22% 3% Operating Margin (%) 16.6% 100bp 40bp Net Income $277 23% 4% Di

  5. Slide 5: Q3 EPS Analysis

    Q3 FY’10 Earnings Q3 EPS Analysis Q3 FY10 Q3 FY09 Change As-reported diluted EPS $1.17 $0.53 - discontinued ops inc - (0.01) - PY items (reference slide #17) - (0.51) - acquisition-related exp (0.11) - Adjusted cont ops EPS $1.28 $1.05 $0.23 Volume $0.36 Price / raw materials (0.09) $0.26 Cost (0.01

  6. Slide 6: Merchant Gases

    Q3 FY’10 Earnings Merchant Gases Fav/(Unfav) vs. Q3 FY10 Q3 FY09 Q2 FY10 Sales $915 4% (1%) - Volume 7% 4% - Price (1%) (1%) - Currency (2%) (4%) Operating Income $176 5% (1%) Operating Margin 19.3% 20bp -  Volume increase led by Asia, and continuing improvement in North America and Europe liquid b

  7. Slide 7: Merchant Gases: Q3 Sales Analysis vs PY

    Q3 FY’10 Earnings Merchant Gases: Q3 Sales Analysis vs PY North America Europe Asia Sales % change 4% (2%) 27% - Volume 6% 4% 22% - Price (2%) (1%) 1% - Currency - (5%) 4%  North America driven by argon and hydrogen  Europe liquid/bulk continues to improve, packaged gases remains weak  Asia stron

  8. Slide 8: Tonnage Gases

    Q3 FY’10 Earnings Tonnage Gases Fav/(Unfav) vs. Q3 FY10 Q3 FY09 Q2 FY10 Sales $725 28% (4%) - Volume 19% 4% - Energy/RM pass thru 9% (7%) - Currency -% (1%) Operating Income $120 37% 12% Operating Margin 16.5% 100bp 230bp  Volumes up on new plant on-streams  Improvement in chemicals and steel mark

  9. Slide 9: Electronics & Performance Materials

    Q3 FY’10 Earnings Electronics & Performance Materials Fav/(Unfav) vs. Q3 FY10 Q3 FY09 Q2 FY10 Sales $497 21% 10% - Volume 21% 11% - Price (1%) -% - Currency 1% (1%) Operating Income $62 60% 9% Operating Margin 12.6% 310bp -  Electronics sales 18% 11%  Performance Materials sales 26% 10% 9

  10. Slide 10: Equipment & Energy

    Q3 FY’10 Earnings Equipment & Energy Fav/(Unfav) vs. Q3 FY10 Q3 FY09 Q2 FY10 Sales $116 (3%) (3%) Operating Income $21 61% 16% Sales Backlog $302 19% (12%)  Favorable project performance  Increased LNG activity 10

  11. Slide 11: Outlook

    Q3 FY’10 Earnings Outlook Q4 FY’10 EPS $1.27-$1.33  Continued recovery/loading  Higher Electronics & Perf Materials results FY’10 EPS $4.94-$5.00  CapEx forecast unchanged, ~$1.3B to $1.5B  Tax rate guidance unchanged, ~25%-26%  Currency headwind 11

  12. Slide 12: Airgas path forward

    Q3 FY’10 Earnings Airgas path forward Tender offer • Revised offer effective 09 July • Offer scheduled to expire on 13 August • Financing fully committed Air Products Shareholder meeting committed to • Expected by September 17 • 3 independent BOD nominees completing • Proposed by-law changes transac

  13. Slide 13: Appendix Slides

    Q3 FY’10 Earnings Appendix Slides Q3 FY’10 Earnings

  14. Slide 14: Appendix: Q3 Sales Analysis

    Q3 FY’10 Earnings Appendix: Q3 Sales Analysis Change versus Q3 FY09 Q2 FY10 Total Consolidated 14% -% Comprised of:  Base business growth 12% 4% – Volume 13% 4% – Price (1%) -%  Energy/RM pass thru 3% (2%)  Currency (1%) (2%) 14

  15. Slide 15: Appendix: Q310 Results

    Q3 FY’10 Earnings Appendix: Q310 Results ($ Millions, except per share data) Non GAAP GAAP Measure Adjustments Non GAAP Measure $ % $ % Q310 vs. Q309 - Total Co. Q310 Q309 Change Change Q310 (1) Q309 (2) Q310 Q309 Change Change Sales 2,252.3 1,976.2 276.1 14% 2,252.3 1,976.2 276.1 14% Operating Inco

  16. Slide 16: Appendix: ROCE

    Q3 FY’10 Earnings Appendix: ROCE $ Millions Quarter Ended Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Numerator Operating Income Reported 348.6 393.7 373.1 114.1 260.4 143.8 328.0 345.0 340.6 336.4 Equity Affiliate Income 42.4 46.5 30.8 24.5 27.0 28.5 32.2 26.9 32.2 32.5 Earnings before t

  17. Slide 17: Appendix: ROCE Tax Rate

    Q3 FY’10 Earnings Appendix: ROCE Tax Rate Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Reported Income from Cont. Ops. Bef. Tax 352.1 400.7 361.1 102.1 257.4 144.8 332.3 340.3 343.3 338.9 Noncontrolling Interest (4.5) (7.6) (4.8) (5.0) (1.6) (4.8) - (5.0) (6.4) (8.1) Income from Cont. Ops. Befo

  18. Slide 18: Appendix: FY10 Guidance

    Q3 FY’10 Earnings Appendix: FY10 Guidance FY10 Guidance vs. FY09 Diluted EPS Continuing Ops FY09 GAAP $3.00 FY09 Global Cost Reduction Plan $0.94 FY09 Pension Settlement $0.02 FY09 Customer Bankruptcy and Asset Actions $0.10 FY09 Non GAAP $4.06 FY10 Guidance (1) $4.94-$5.00 FY09 GAAP $3.00 % Change

  19. Slide 19: Thank you

    Thank you www.airproducts.com

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