Air Products And Chemicals, Inc. · NYSE:APD
Air Products And Chemicals — 24th Annual Credit Suisse Chemical & Ag Science Conference (September 2011)
19 slides from Air Products And Chemicals's conference presentation, Sep 13, 2011
Slide 1: Strategy for Success
Strategy for Success Innovation, Integration and Improvement Paul Huck Senior Vice President & Chief Financial Officer 24th Annual Credit Suisse Chemical & Ag Science Conference September 13, 2011 1
Slide 2: Forward Looking Statement
Forward Looking Statement NOTE: This presentation contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including projections and targets. These forward- looking statements are based on management's reasonable expectations an
Slide 3: Air Products At a Glance
Air Products At a Glance • $9B in revenues across diverse markets and geographies • Positioned for continued long-term value creation Food Healthcare 4% Asia U.S. Energy 22% 7% 39% 23% Metals 9% Other 9% Electronics 15% Europe 32% Manufacturing 14% Canada/L.A. Chemicals 7% 19% 3
Slide 4: Supply Modes: Stability and Profitable Growth
Air Products Supply Modes Stability and Profitable Growth Onsite/Pipeline Package Gases & Specialty Materials 27% 40% 12% 21% 15-20 year Contracts Short-Term Contracts Limited Volume Risk Differentiated Positions Energy Pass through Equipment & Onsite/Pipeline Liquid/Bulk Services Packaged Gases & S
Slide 5: Revenue Growth, Operating Margin, Return on Capital
Revenue Operating Return on Growth Margin Capital 11%-13% per year 20% 15% From $9B From 16.5% From 12.5% in 2010 in 2010 in 2010 to to to $15B+ in 2015 20% in 2015 15% in 2015 5
Slide 6: Global Trends Drive Growth
Global Trends Drive Growth Increasing Environmental Emerging Digital Energy Demand Focus Markets Revolution • Refining • Refining • Metals • Semiconductor • Gasification • Glass • Chemicals • Display • Coatings & • Food Construction • Electronics 6
Slide 7: Market Exposure 2010
Air Products Market Exposure 2010 Market $63 Billion APD $9 Billion Energy Food 9% Annual Growth 9% Food 9% Healthcare 4% Electronics Energy Healthcare 7% 10% 23% 8% Metals 9% Metals 12% Chemicals 35 6% 13% 7% Electronics 30 15% 10% 25 Billions ($) 9% Manufacturing Manufacturing 23% 39% 20 12% Chemi
Slide 8: Profitable Joint Ventures with Leadership Positions
Air Products Advantage: Profitable Joint Ventures with Leadership Positions Mexico Italy South Africa India Thailand Sales (100%) $0.6B $0.5B $0.2B $0.1B $0.1B AP Ownership 40% 49% 50% 50% 49% FY 2010 Air Products Equity Affiliates1 Combined2 (as reported) (100% basis) (AP +100% EA) Sales ($MM) $9,0
Slide 9: Accelerating Air Products Growth
Accelerating Air Products Growth % Growth Component Increase Market Growth 9% Air Products Market Position 1%-2% Consolidation / M&A 1%-2% Total 11-13% 9
Slide 10: Hydrogen Leadership
Air Products Advantage: Hydrogen Leadership 12 Major Hydrogen Pipelines Onsite H2 Market 10 8 BSCFD 6 • US Gulf Coast 4 • Southern California • Edmonton, Alberta, Canada 2 • Sarnia, Ontario, Canada 0 • Rotterdam, Netherlands 2001 2010 2020 #1 market share for over two decades 10
Slide 11: Tonnage Gases: Significant New Markets for Oxygen
Tonnage Gases Significant New Markets for Oxygen • Steel New Market - Asian infrastructure growth Growth for - Mill modernization Oxygen 15% • Gasification 40% - Power - Feedstock independence - Low BTU hydrocarbons • Cleaner coal 45% - Power - CO2 capture Steel Gasification Clean Coal 900,000 tons-
Slide 12: Asia Merchant Leadership
Air Products Advantage: Asia Merchant Leadership Asia 2011 Manufacturing Output #1 China #1 Korea #1 India #1 Taiwan 70% Countries #2 Thailand where #2 Air Products has #1 or #2 Malaysia positions #1 positions in high growth markets 12
Slide 13: Electronics Leadership
Air Products Advantage: Electronics Leadership #1 in Taiwan ROW #1 #1 in U.S. in Korea 300mm Fab Capacity Key customer and geographic positions 13
Slide 14: Roadmap to 20% Margin
Roadmap to 20% Margin 22 20% 20 1% Productivity Operating Margin (%) 2% Growth 18 16 14 17% 17% 12 10 2011 2015 14
Slide 15: Driving Returns Higher
Driving Returns Higher 16 15% 15 .5% Capital Turnover 14 1% Margin Improvement ROCE (%) 13 12 13.5% 13.5% 11 10 2011 2015 15
Slide 16: Strong Growth Opportunities Drive Disciplined Investment
Strong Growth Opportunities Drive Disciplined Investment Maintenance 15% Acquisition 15% Growth 70% $13-14B Capital Spending - 2011 to 2015 16
Slide 17: Cash Priorities Remain Consistent
Cash Priorities Remain Consistent • Invest in the best $2.00 return projects 29 years of dividend increase • Maintain A bond rating $1.50 • Dividend increase each year $1.00 • Share repurchase with excess cash $0.50 $0.00 17
Slide 18: $15+ Billion in Sales by 2015
2015 2015 by $15+ Billion in Sales 20% Operating Margin 15% Return on Capital Employed 18
Slide 19: Thank you... tell me more
Thank you... tell me more AIR PRODUCTS ZZ