Air Liquide SA · EURONEXT:AI
Air Liquide SA — Q1 2010 Earnings Presentation
28 slides from Air Liquide SA's earnings presentation, Apr 26, 2010
Slide 1: 2010 1st quarter activity
2010 1st quarter activity Return to growth Solid operating performance Pierre Dufour, Senior Executive Vice-President Jean-Pierre Duprieu, Senior Vice President Fabienne Lecorvaisier, Chief Financial Officer April 26, 2010
Slide 2: Activity in line with expectations
Activity in line with expectations Return to growth in Q1 DGas and Services sales up +8.3% on a comparable basis DRebound in Large Industries and Electronics Solid operating performance DMaintained cost discipline DNet debt stable 2 Air Liquide, the world leader in gases for industry, health and
Slide 3: Growth relative to 2009 and 2008
Growth relative to 2009 and 2008 Sales Q1 10/09 Q1 10/09 Q1 10/08 In €m Q1 10 as published Comparable* comparable* Gas & Services 2 760 - + 8.3 % - + 8.3 % - + 2.0 % Engineering - - - & Construction 185 - 24.9 % - 25.3 % - 4.2 % Other activities 207 - + 2.2 % + 2.4 % - - 18.5 % Group Total 3 152 + 5
Slide 4: Volume trends continue
Volume trends continue Base 100. average 2008 Industrial Merchant Large Industries gas volumes Cylinder and Bulk O2 volumes 120 110 110 Hydrogen 100 100 Cylinders Cylinder 90 90 80 Oxygen 80 Bulk 70 70 T1 T2 T3 T4 T1 T2 T3 T4 T1 T1 T2 T3 T4 T1 T2 T3 T4 T1 08 08 08 08 09 09 09 09 10 08 08 08 08 09 09
Slide 5: Q1 2010 at the high level of Q4 2009
Q1 2010 at the high level of Q4 2009 Sales by quarter, at constant natural gas and forex Base 100 Base 100 110 110 + 4.4%* + 1.4%* 105 105 +2.5%* + 3.1%* + 1.8%* + 1.4%* 100 100 95 95 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Group Gas & Services * Sequential growth 5 Air Liquide,
Slide 6: March activity at 15-month high
March activity at 15-month high Monthly G&S activity index. 2008 average base 100* 2008 Average 100 95 2009 Average 90 85 9 07 08 09 9 09 09 09 09 10 9 09 09 10 09 10 09 r0 r0 r0 20 20 st er ch ne ch ril ry ay ry y ly y be be be ar ar gu Ap Ju ob ua ua e e ar ar M Ju em em nu em nu ag ag Au ct M M b
Slide 7: Return to growth in all geographical areas
Return to growth in all geographical areas Gas & Services Q1 2010 Signs of industrial recovery in certain countries Europe +3.8% Growth in Healthcare Dynamic Eastern Europe Ramp-ups in South America and in USA Americas +8.5% Industrial Merchant growth in Latin America and Canada Start-up
Slide 8: Recovery still contrasted between mature and emerging economies
Recovery still contrasted between mature and emerging economies Quarterly G&S activity index, 2008 average base 100* 120 Mature economies 120 Emerging economies 115 115 110 110 105 105 100 100 95 95 90 90 85 85 Q1 09 Q1 09 Q3 09 Q4 09 Q1 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 G&S sales growth +5% + 28 % Q
Slide 9: Return to growth in all business lines
Return to growth in all business lines Industrial Merchant Large Industries 6.9% 20% 8% 16.0% 15.5% 13.7% 3.4% 1.7% 15% 3% 10% -2% 5% 2.2% 1.0% -3.4% -3.5% -7% 0% -7.7% -6.7% -8.8% -5% -12% -10.5% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2008 2009 2009 2009 2009 2010 2008 2008 2009 2009 2009 2
Slide 10: Engineering & Construction: favorable outlook
Engineering & Construction: favorable outlook Third-party E&C sales E&C order intake In €m In €m 400 1500 323 1250 300 282 253 258 247 1000 208 200 185 750 500 100 250 315 238 240 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2008 2008 2009 2009 2009 2009 2010 Q1 Year Sales en line with the Expectatio
Slide 11: Recovery in investment cycle
Recovery in investment cycle Portfolio Decisions Capex Start-ups Ramp-ups 1-year portfolio Investment Capex decisions In €bn In €m In €m 4 3.8 500 1.7 0.7 0.8 400 350 380 3 0.9 300 2 0.8 200 3.0 3.0 2.5 2.4 1 100 1.6 0 0 juin-08 dec 08 juin-09 dec 09 mars-10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1 09 Q2 09
Slide 12: 1st quarter 2010 solid operating performance
1st quarter 2010 solid operating performance D Maintained discipline on costs D Net debt stable
Slide 13: Efficiency programs pursued
Efficiency programs pursued In €m Efficiency 335 300 230 > 200 200 180 Objective GOAL GOAL OPAL 100 0 2007 2008 2009 2010 2010 Objective > €200m Reorganizations Procurement and general expenses globalization 16% 34% Industrial and supply chain efficiency 50% 13 Air Liquide, the world leader in gases
Slide 14: Procurement organisation deployment
Procurement organisation deployment 52% of spend already managed through platforms 85 category managers out of an objective of 110 11 global projects in 2010 Europe Americas Asia-Pacific Platforms Middle East / Africa global regional Expected in 2010 Requirement Scope Tender Economies Platform
Slide 15: Logistics efficiency project deployment
Logistics efficiency project deployment 150 projects being deployed, of which automatic customer refilling and stock and delivery optimization 2010 2009 2009 2009 Potential efficiency: €15m pa Telemetry unit at Avoided Kms: 17 million pa the customer CO2 emissions : -5% to -7% 2009 2011 Start year
Slide 16: Cash project deployment
Cash project deployment More than 500 local projects covering 90% of Group revenue Maintain structural WCR between 5 and 7% in a period of growth Americas Europe 322 Asia-Pacific 48 139 Total N° of projects 8.9% 6.9% 5.7% Group WCR* 2007 2008 2009 Stocks Receipts Contracts Purchasing Logis
Slide 17: Solid operating performance
Solid operating performance In €m Efficiency COSTS 335 300 230 > 200 Q1 Operating margin 200 Objective slightly higher than average GOAL 100 GOAL 2009 margin 0 2008 2009 2010 En €bn Net cash flow* 500 ~ 456 Net cash flow*: + 22% in ~390 ~ 375 Q1 2010 CASH 250 Net debt stable at end of 0 Q1, do
Slide 18: 2010 Outlook
2010 Outlook Q1 2010 Return to growth in a contrasted environment Potential efficiency gains confirmed Recovery in investment cycle 2010 objective maintained Résultat net En M€ 1 250 Barring a major economic upset, continuous growth 1 000 750 in net profit in line with long term performance 50
Slide 19: Appendix
vr AIR LIQUIDE Appendix
Slide 20: Q1 G&S +8.3% on a comparable basis
Q1 G&S + 8.3 % on a comparable basis In €m +8.3 % published 210 -10 +12 2 760 2 548 2 500 +8.3 % comparable* 2 000 0 1 500 Q1 2009 Comparable Natural gas Change Q1 2010 basis* Group 2 997 + 153 - 10 + 12 3 152 *excluding natural gas and forex 20 Air Liquide, the world leader in gases for industry, h
Slide 21: Europe returns to growth
Europe returns to growth 25% 36% Industrial Merchant 36% D Progressive recovery in mature economies Gas & Services revenue : €1,497m D Rapid recovery in emerging economies Comparable variation Q1 10/09 : +3.8% * D Pricing slightly negative -1.8% Industrial Merchant Large Industries D Improvement
Slide 22: Americas: recovery in advance relative to Europe
Americas: recovery in advance relative to Europe 45% 38% Industrial Merchant D Positive pricing in the US Gas & Services revenue: €643m D Volume growth in Canada and Latin Comparable variation Q1 10/09: +8.5%* America Industrial Merchant +0.2% Large Industries D Strong growth in volumes Large In
Slide 23: Asia: Strong recovery
Asia: Strong recovery 28% 41% Industrial Merchant D Growth in all countries, positive 26% inflection of trend in Japan Gaz & Services revenue: €558m D New capacities in China serving strong demand Comparable variation Q1 10/09: +21.9% * Large Industries Industrial Merchant +10.6% D Start-ups in
Slide 24: Gas & Services quarterly growth
Gas & Services quarterly growth Published Natural gas Currency Comparable growth growth Q1 2009 - 3.8% - 2.3% +2.7% - 4.2% Q2 2009 -8.2% -6.0% +2.9% -5.1% Q3 2009 -8.9% -5.2% +1.5% -5.2% Q4 2009 -9.2% -2.8% -1.8% -4.6% Q1 2010 +8.3% -0.4% +0.4% +8.3% 24 Air Liquide, the world leader in gases for ind
Slide 25: Sequential analysis of sales (1)
Sequential analysis of sales (1) Revenue in €m Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1 10/09 Q1 10/09 as published comparable Europe 1 471 1 402 1 404 1 496 1 497 +1.8% +3.8% Americas 579 566 552 577 643 +11.2% +8.5% Asia-Pacific 447 449 490 522 558 +24.8% +21.9% Middle East & Africa 51 57 68 60 62 +20.7%
Slide 26: Sequential analysis of sales (2)
Sequential analysis of sales (2) Revenue in €m Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1 10/09 Q1 10/09 as published Comparable Industrial Merchant 1 071 1 048 1 069 1 088 1 106 +3.2% +1.7% Large Industries 836 771 764 848 936 +12.0% +13.7% Electronics 206 207 227 232 252 +22.5% +25.2% Healthcare 435 448 454
Slide 27: Impact of currency and natural gas on G&S sales
Impact of currency and natural gas on G&S sales In €m Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 €/USD +54 +54 +18 (46) (26) €/CAD (9) (1) 0 +2 +14 €/JP¥ +58 +42 +41 (8) (7) Others (30) (9) (15) (10) +31 Total +73 +86 +44 (62) +12 Natural gas impact (62) (163) (142) (83) (10) Average exchange rates for the perio
Slide 28: For further information, please contact
For further information, please contact: Investor Relations Corporate Communications Virginia Jeanson + 33 (0)1 40 62 57 37 Anne Lechevranton + 33 (0)1 40 62 50 93 Annie Fournier + 33 (0)1 40 62 57 18 Corinne Estrade-Bordry + 33 (0)1 40 62 51 31 www.airliquide.com Corporate headquarters : 75, Quai d