Air Liquide SA · EURONEXT:AI
Air Liquide SA — Q3 2019 Earnings Presentation
32 slides from Air Liquide SA's earnings presentation, Oct 24, 2019
Slide 1: Q3 2019 Activity
Q3 2019 Activity Robust Sales Growth Despite Softening Environment Very Active Business Development Paris, 24 October 2019
Slide 2: Q3 Highlights
Q3 Highlights Robust sales growth at +3.5% despite a softening environment Performance improvement plans continue to deliver Strong cash flow Sustained business development with high levels of opportunities and decisions 2 24 October 2019 Q3 2019 Activity A world leader in gases, technologie
Slide 3: Markets Softening Through Q4 2019
Markets Softening Through Q4 2019 Chemicals Softening Chemicals in all regions LI Oil & gas High demand from Refining in Northern Europe Steel Active projects signing Metal Fab. Construction Continued softening in U.S. IM Energy Growth in consumption related sectors Food & Pha
Slide 4: Robust Sales Growth
Robust Sales Growth Q3 Group sales: +2.1% FX Impact +0.6% Scope -2.7% Energy Impact 4 24 October 2019 Q3 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 5: HC and EL, Key Growth Drivers in Q3
HC and EL, Key Growth Drivers in Q3 G&S comparable sales growth WBLs Main Geographies contributing Large Industries + 3% Asia, H2 in Europe Industrial Merchant + 2% Europe, Asia, Middle East Healthcare + 6% Europe, Americas Electronics + 6% Asia 5 24 October 2019 Q3 2019 Activity A world leader in g
Slide 6: Resilient Base Business Activity
Resilient Base Business Activity G&S quarterly growth analysis (Tech Air in 2019) (1) Comparable growth based on 2016 adjusted sales 6 24 October 2019 Q3 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 7: Q3 – Robust Europe, Solid Americas
Q3 – Robust Europe, Solid Americas G&S comparable sales growth LI - several turnarounds Americas – Solid HC, Resilient IM IM - resilient despite softening in Construction and Metal Fab Sales - sustained pricing Q3 2019 €2,137m HC - growing medical gases in U.S. - high HHC in Latin America EL
Slide 8: Q3 – High Asia, Solid Middle East and Africa
Q3 – High Asia, Solid Middle East and Africa G&S comparable sales growth Asia – LI and EL driving Growth LI - O2 Ramp-Ups in China for Chemicals IM - strong cylinder volumes, lower bulk Sales pricing in China Q3 2019 - solid SE Asia €1,207m - high helium volumes and pricing EL - >+10% growth e
Slide 9: Q3 – Solid Growth in LI, Resilient IM
Q3 – Solid Growth in LI, Resilient IM G&S comparable sales growth Large Industries – Asia Driving Growth Sales strong Oil & gas in Benelux with high Q3 2019 H2 volumes €1,374m Ramp-ups in China & Europe softening Chemicals & low Metals Industrial Merchant – Solid Growth in Europe & Asia succ
Slide 10: Q3 – Strong HC, High EL
Q3 – Strong HC, High EL G&S comparable sales growth Healthcare – Organic Growth strong HHC in Europe especially with Sales diabetes and sleep therapies Q3 2019 €915m solid medical gases in U.S. strong activity in Latin America Electronics – +8.6% Growth excluding E&I >+10% growth in Carrier
Slide 11: Pursued Management of Pricing and Product Mix
Pursued Management of Pricing and Product Mix IM pricing momentum Q3 Product Mix +3.8% Positive mix effect contributing to higher margin: +2.9% less E&I in EL and hardgoods in IM higher Cylinder growth compared to +1.3% bulk in IM +0.2% local review of activities and customers portfolio in IM
Slide 12: Strengthened Efficiency Program Ramping-Up
Strengthened Efficiency Program Ramping-Up 2019 Cumulated efficiencies efficiencies Accelerated Airgas delivery €984m Increased efficiencies from € 310m digital deployment Launch of European Support Center Bulk supply chain renewal in Asia 2017-2020 1.5bn >€ YTD Q3 2019 400m >€ Streamlinin
Slide 13: Continuous Portfolio Management
Continuous Portfolio Management Focus on Core business Densification of operations New Divestitures in Q3 New Acquisitions in Q3 2 in Europe 2 at Airgas non-core activity in Hygiene 1 in Canada hospital piping business in Germany 1 in Italy 1 in Asia: Fujian 6 divestitures YTD (incl.
Slide 14: Strong Cash Flow
Strong Cash Flow Cash Flow(1) Net Capex Net Debt(3) • €3.5bn • €1.8bn • €13.2bn €1.8bn • 21.1 % of sales(2) • 11% of sales • 67% gearing(4) YTD 2019 figures (1) Operating Cash Flows before changes in Working Capital requirements (3) Excluding IFRS 16 (2) 19.9% excluding IFRS 16 (4) Adjusted for divi
Slide 15: Very Active Business Development
Very Active Business Development Investment Investment Start-up/Ramp-up Opportunities(1) Decisions(1) Sales Growth Contribution 12-month portfolio €2.8bn €983m €2.7bn €283m €2.7bn €98m €2.6bn YTD YTD Q3 18 Q1 19 Q3 19 Q3 2018 Q3 2019 Q3 2018 Q3 2019 • well-balanced by geography • High level of signi
Slide 16: Contribution from 2019 Start-Ups Slightly Faster than Expected
Contribution from 2019 Start-Ups Slightly Faster than Expected Major Start-Ups 2019 2019 2020 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1 Q2 EL Pemex EL LI Steel EL EL LI LI EL Projects T/O Projects Project Project Project Project Project Project Project Asia Mexico Asia Middle- Europe Asia Asia Asia South America Asia
Slide 17: 2019 Outlook
2019 Outlook Performance Read Through 2019 “Assuming a comparable Diverse End Resilient environment, Air Liquide is Model Markets confident in its ability to deliver net profit growth Strong Performance in 2019, calculated at Investment Improvement Backlog Programs constant exchange rate” 17 24 Octo
Slide 18: Q3 2019 Appendix
Q3 2019 Appendix 18 24 October 2019 Q3 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 19: Q3 2019 G&S Revenue Breakdown by Region
Q3 2019 G&S Revenue Breakdown by Region EUROPE €1.7bn ASIA- AMERICAS PACIFIC €2.1bn €1.2bn €5,242m Industrial Merchant Large Industries Healthcare Electronics 19 24 October 2019 Q3 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 20: Americas
Americas Q3 Gas & Services Sales: €2,137m Industrial Merchant Large Industries Healthcare Electronics • Resilient activity with positive • Several Customer turnarounds • Growing Medical gases in • Strong Carrier Gases Food & Pharma and Research in U.S. in O2 and H2 the U.S. with Proximity care marke
Slide 21: Europe
Europe Q3 Gas & Services Sales: €1,742m Industrial Merchant Large Industries Healthcare • Solid Food and Pharma • High refining demand in H2 • High steady organic growth markets in all countries (Benelux) • Strong HHC, especially diabetes • Sustained pricing: +3.3% • Slow Steel and Chemicals in in N
Slide 22: Asia-Pacific
Asia-Pacific Q3 Gas & Services Sales: €1,207m Industrial Merchant Large Industries Electronics • China: strong cylinder volumes, • Ramp-Ups in China, including • >+10% growth excluding E&I lower bulk pricing Fujian for 2 months • High Carrier Gases growth in China, • Solid South East Asia • Strong H
Slide 23: Industrial Merchant Pricing
Industrial Merchant Pricing 23 24 October 2019 Q3 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 24: YTD 2019 – E&C and GM&T Activities
YTD 2019 – E&C and GM&T Activities Engineering & Construction Global Markets & Technologies €257m -11% €371m +17% Sales to third parties(1) Sales(1) Total Sales: +20% €500m -24% €362m +9% Order Intake Order Intake (1) Comparable growth 24 24 October 2019 Q3 2019 Activity A world leader in gases, tec
Slide 25: Increasing Backlog to €2.5bn
Increasing Backlog to €2.5bn Decisions Start-ups €2.5bn 2.2 2.1 2.1 in €bn € 0.9bn Dec 2016 Dec 2017 Dec 2018 Decisions Start-ups Sept 2019 Yearly Sales Backlog after full Ramp-ups See definitions in appendix 25 24 October 2019 Q3 2019 Activity A world leader in gases, technologies and services for
Slide 26: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue 26 24 October 2019 Q3 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 27: Revenue Analysis by Quarter and by Business Line
Revenue Analysis by Quarter and by Business Line 27 24 October 2019 Q3 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 28: Revenue Analysis by Quarter and by Geography
Revenue Analysis by Quarter and by Geography 28 24 October 2019 Q3 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 29: G&S Revenue Growth by Quarter and by Impact
G&S Revenue Growth by Quarter and by Impact 29 24 October 2019 Q3 2019 Activity A world leader in gases, technologies and services for Industry and Health
Slide 30: 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 31: Regular and Sustained Performance
Regular and Sustained Performance CAGR over 30 years(1) 24 000 Revenue (in €m) +5.8% EPS(2) (in €) +6.9% 20 000 5,0 16 000 4,0 12 000 3,0 8 000 2,0 4 000 1,0 0 0,0 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2
Slide 32: For further information, please contact: Investor Relations Communication
For further information, please contact: Investor Relations Communication Aude Rodriguez + 33 (0)1 40 62 57 08 Alexandra Rocca + 33 (0)1 40 62 50 93 Ludmilla Binet + 33 (0)1 40 62 57 37 Annie Fournier + 33 (0)1 40 62 51 31 Muriel Légeron + 33 (0)1 40 62 50 18 Joseph Marczely + 1 610 263