Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — FY2012 Earnings Presentation
56 slides from Air Liquide Sa's earnings presentation, Feb 14, 2013
Slide 1: 2012 Results
2012 Results Cliquez pour modifier le style des sous-titres du Benoît masquePotierChairman and Chief Executive Officer Paris, February 14, 2013 Fabienne Lecorvaisier Chief Financial Officer
Slide 2: 2012 Results
2012 Results Paris, February 14, 2013 2012 Performance delivered Solid balance sheet Investment gaining momentum 2013 Strengthening for growth Updating ALMA to meet new challenges 2 February 14, 2013 2012 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 3: Activity level close to +20% above 2008 reference
Activity level close to +20% above 2008 reference Annual G&S activity indicator(1) base 100, average 2008 2008 2009 2010 2011 2012 120 115 110 105 100 95 90 (1) Revenue (excluding currency and natural gas), adjusted for the number of days per month. 2012 data includes LVL Médical and Gasmedi activit
Slide 4: Performance delivered
Performance delivered Gas & Services sales(1) Efficiencies Annual objective 2012 In €bn In €m > € 200 M 13.1 13.9 14,0 280 270 284 11.9 300 12,0 10,0 200 8,0 6,0 +6.5%(2) 100 4,0 2,0 0 0,0 2010 2011 2012 2010 2011 2012 Capex Industrial Net financial(3) Operating Cash flow(4) In €bn In €bn 3 2.9 2,5
Slide 5: Continuous growth in net profit and dividend
Continuous growth in net profit and dividend Net profit (Group Share): +4.9% Dividend per share(1): +10.3% 2009-2012 CAGR: +9.4% 2009-2012 CAGR: +9.4%(1) In €m In € 2.50 1,609 2,5 1500 2 1250 1,5 1000 1 750 0,5 500 0 2009 2010 2011 2012 2009 2010 2011 2012 Pay-out ratio 49.9% (1) Subject to approv
Slide 6: 2012 Results: Activity
2012 Results Paris, February 14, 2013 l Fabienne Lecorvaisier l Chief Financial Officer Activity Performance Investments 6 February 14, 2013 2012 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 7: Key figures
Key figures FY 11 FY 12 FY 12/11 FY 12/11 Sales in €m revised (1) as published excl Nat gas and forex Gas & Services 13,064 13,912 +6.5% +3.0% Engineering & Construction 705 785 +11.3% +9.4% Other Activities 688 629 -8.4% -9.8% Group Total 14,457 15,326 +6.0% +2.7% (1) 2011 figures revised for integ
Slide 8: Sound activity level
Sound activity level Quarterly G&S activity indicator(1) base 100, 2009 2010 2011 2012 average 2008 120 115 110 105 100 95 90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (1) Revenue (excluding currency and natural gas), adjusted for the number of days per month. Q4 2012 includes LVL Médical and
Slide 9: Positive signs in Q4
Positive signs in Q4 G&S comparable growth(1) 2009 2010 2011 2012 +11.4% +11.3% 12% +11.0% +10.7% +9.7% 10% +8.3% +7.7% 8% 6% +4.6% +4.0% 4% +1.9% +1.6% 2% +0.9% 0% -2% -4% -4.2% -4.6% -6% -5.1% -5.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (1) excluding currency, natural gas and significant
Slide 10: In particular in Developing economies
In particular in Developing economies Comparable G&S sales growth(1) G&S sales share in (2012/ 2011) developing economies +25% 23% + 5% +0% 21% +8% 19% -4% 16% 15% +16% +12% Advanced economies Developing economies 2008 2009 2010 2011 2012 +1% +11% Developing economies in Q4 2012: +14%. (1) excluding
Slide 11: Back to more robust growth in all zones...
Back to more robust growth in all zones... G&S sales in Q4 2012 Q4 and FY growth(1) Total G&S +4.6% €3,585m +2.8% +2.3% HyCO volumes Europe Industrial Merchant Healthcare €1,827m +1.0% in Southern Europe Eastern Europe Americas Large Industries +7.6% Pricing €797m +6.2% Latin America Asia Pacifi
Slide 12: … and in all business lines
… and in all business lines Industrial Merchant +2% FY12 Large Industries +6% FY12 20% 10% +17% +17% 8% 15% +11% 6% +4% +4% 10% +8% +7% 4% +3% +2% +2% +2% +2% +4% 5% +3% 2% +1% 37% 36% +2% 0% 0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4 2012 E
Slide 13: Record order intake in Engineering & Construction
Record order intake in Engineering & Construction E&C order intake Third party E&C sales 705 785 1 704 300 +9%(1) 258 1600 252 1 228 1200 200 188 178 1 010 156 158 167 826 +69% 134 800 100 400 0 0 2009 2010 2011 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 (1) Comparable growth 13 February 14, 2013 2012 R
Slide 14: Steady contribution from growth initiatives
Steady contribution from growth initiatives G&S annual growth analysis 7% 5% 5% 3% 3% Base business Start-ups, 1% Ramp-ups, Site takeovers, -1% Small acquisitions -3% Significant perimeter -5% -7% -9% 2008 2009 2010 2011 2012 14 February 14, 2013 2012 Results Air Liquide, world leader in gases for i
Slide 15: 2012 Results: Performance
2012 Results Paris, February 14, 2013 l Fabienne Lecorvaisier l Chief Financial Officer Activity Performance Investments 15 February 14, 2013 2012 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 16: Margin preserved…
Margin preserved… Change In €m 2011 2012 12 vs 11 Revenue 14,457 15,326 +6.0% Purchases (5,762) (6,099) +5.8% Personnel expenses (2,481) (2,667) +5.9% Other net income and expenses (2,650) (2,768) Operating profit before depreciation 3,564 3,792 +6.4% Depreciation and amortization (1,155) (1,232) +6
Slide 17: …supported by close to 30% efficiency retention
…supported by close to 30% efficiency retention G&S OIR margin in €m 18.9% 18.9% (2) 56 2,622 +272 2,473 +15 0 29% 2 500 +58 2 250 G&S <252> G&S 2 000 1 750 0 OIR Volume Energy Cost Price Efficiencies Forex OIR mix effect increase excl. and 2011(1) energy Others 2012 (1) OIR = Operating Income Recur
Slide 18: Pricing and efficiency more than offset cost inflation
Pricing and efficiency more than offset cost inflation in €m Cost inflation Pricing Efficiencies 120 80 40 2010 2011 2012 0 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 -40 2010 2011 2012 2010 2011 2012 -80 -120 -160 18 February 14, 2013 2012 Results Air Liquide, world leader in gases for i
Slide 19: Net Profit up +4.9%
Net Profit up +4.9% Change In €m 2011 2012 12 vs 11 Revenue 14,457 15,326 +6.0% Operating Income Recurring 2,409 2,560 +6.3% Other non-recurring operating income & expenses 28 (27) Operating Income 2,437 2,533 +4.0% Net financial costs and other net financial expenses (298) (312) Income taxes (576)
Slide 20: 2012 Results: Investments
2012 Results Paris, February 14, 2013 l Fabienne Lecorvaisier l Chief Financial Officer Activity Performance Investments 20 February 14, 2013 2012 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 21: Confidence in the medium term
Confidence in the medium term 12-month portfolio Investment of opportunities decisions(1) Net capex(1) Start-ups(2) In €bn In €bn In €bn 2.9 2.8 50 e 4.2 4.1 4.0 24 2.2 1.5 2.0 1.4 1.4 1.7 1.7 16 17 15 1.4 1.1 2.7 2.7 2.5 YTD Dec-11 Jun-12 Dec-12 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 201
Slide 22: Net debt stable excluding acquisitions
Net debt stable excluding acquisitions Net debt In €m <848> +132 <6,103> +12% <5,248> <2,848> +855 +2,913 Gearing ratio Gearing ratio 53% 58% <204> Net Debt Cash flow WCR Net Dividends net Currency + Net Debt, Dec 31, 2011 + others Investments(1) of capital Scope Dec 31, 2012 increases (2) incl. Acq
Slide 23: Solid Balance sheet
Solid Balance sheet Net debt to equity ROCE(1) 100% 13% 11.9%(2) 12% 75% 11% 58% 10% 50% 9% 8% 25% 7% 0% 6% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (1) Reminder : Return On Capital Employed after tax: (Net profit before
Slide 24: Strengthening for growth
Strengthening for growth Paris, February 14, 2013 l Benoît Potier l Chairman and Chief Executive Officer Major trends Updating ALMA to meet new challenges 24 February 14, 2013 2012 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 25: Changing macroeconomics
Changing macroeconomics Natural gas price Health expenses Mobile cellular in the US per capita subscriptions In $Mbtu In $ In millions 14 1000 China 12 900 750 10 800 8 500 Europe 700 6 250 600 4 N. America 500 0 2 2003 2004 2005 2006 2007 2008 2009 2010 1990 1992 1994 1996 1998 2000 2002 2004 2006
Slide 26: Major trends are shaping our markets
Major trends are shaping our markets Industrial production Demography Appetite for Natural resources Urbanization Innovation 26 February 14, 2013 2012 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 27: Updating ALMA to meet new Challenges
Updating ALMA to meet new Challenges “To be the leader of our industry Ambition through performance and responsibility over the long term.” “Strengthening our competitiveness Strategic and innovation for profitable growth objective over the long term” 27 February 14, 2013 2012 Results Air Liquide, w
Slide 28: Competitiveness: efficiency objective boosted from €1bn to €1.3bn
Competitiveness Price Non-price Market focus Streamlining Efficiencies 2011-2015 efficiency objective boosted from € 1bn to € 1.3bn 28 February 14, 2013 2012 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 29: Boosted efficiency objective
Boosted efficiency objective Efficiencies OPAL ALMA GOAL ALMA 2015 Cumulated € 1.3 bn efficiencies € 390 m € 845 m +30% vs initial objective In €M 335 284 280 270 300 230 200 180 Annual objectives 120 100 90 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 29 February 14, 2013 2012 Results A
Slide 30: Innovation
Innovation Electronics volumes driven by innovation Aloha sales Tablet sales base 100 in 2008 in M units 300 New H2 mobility market 300 “ Key world manufacturers 200 200 joining forces on fuel cell vehicles” - Jan 24 & 28, 2013 100 100 “ 1.6m H2 powered vehicles on UK roads in 2030 ” - UK H2 0 0 mob
Slide 31: Investment decisions focused in growing markets
Investment decisions focused in growing markets 2012 G&S investment decisions (industrial + financial) Americas Europe Middle-East Africa Asia-Pacific €500m €1,850m €100m €450m Targeted markets: Large Industries Industrial Merchant Healthcare Electronics 31 February 14, 2013 2012 Results Air Liquide
Slide 32: Growth aligned with major trends
Growth aligned with major trends Air Liquide 2012 growth 1 million New Top cylinders H2 volumes Home Healthcare rentals growth patients +14% +38% +34% 32 February 14, 2013 2012 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 33: Market focused organization
Market focused organization Houston Paris Frankfurt Shanghai Energy Healthcare Engineering Electronics Americas Environment Large projects Asia-Pacific Europe Europe Middle-East & Africa Technology and R&D 33 February 14, 2013 2012 Results Air Liquide, world leader in gases f
Slide 34: 2013 Outlook
2013 Outlook 2013 ■ Accelerating momentum in new markets ■ Moderate growth in historical markets ■ Reinforced competitiveness and innovation 2013 objective Barring a degradation of the environment, Air Liquide is confident in its ability to deliver another year of net profit growth in 2013 34 Februa
Slide 35: Appendix
Appendix 35 February 14, 2013 2012 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 36: Impact of currency and natural gas on G&S revenue
Impact of currency and natural gas on G&S revenue Currency In €m Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 €/USD +5 +18 +54 +56 +20 €/CAD (0) +4 +11 +16 +11 €/JP¥ +21 +21 +37 +30 (3) Others +0 +27 +48 +57 +33 Total currency +26 +70 +150 +160 +61 impact Average rate Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 €/USD 1.35 1.31
Slide 37: Consolidated P&L
Consolidated P&L In €m 2011 2012 Revenue 14,457 15,326 Cost of goods (10,893) (11,534) Operating income recurring before depreciation 3 564 3 792 Depreciation and amortization expense (1,155) (1,232) Operating income Recurring 2,409 2,560 Net non-recurring operating income 28 (27) Operating income 2
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet In €m ASSETS 31/12/11 31/12/12 EQUITY AND LIABILITIES 31/12/11 31/12/12 Goodwill 4,559 5,133 Shareholders’ equity 9,759 10,212 Fixed assets 12,735 13,511 Minority interests 237 233 Other non-current assets* 963 1,077 Total equity 9,996 10,445 Total non-current assets 18,25
Slide 39: Cash Flow statement
Cash Flow statement In €m 2011 2012 Funds provided by operations 2,728 2,913 Changes in Working Capital (193) (67) Other items (109) (137) Net cash from operating activities 2,426 2,709 Purchase of PPE* and intangible assets (1,755) (2,008) Purchase of financial assets (100) (879) Proceeds from sale
Slide 40: Revenue analysis by quarter (1)
Revenue analysis by quarter (1) Sales in €m (1) Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4 12/11 Q4 12/11 revised comparable(2) Europe 1,720 1,747 1,724 1,728 1,827 +6.2% +2.3% Americas 722 772 746 793 797 +10.3% +7.6% Asia-Pacific 787 840 835 873 868 +10.4% +6.2% Middle-East 84 84 89 96 93 +11.1% +11.2% & Af
Slide 41: Revenue analysis by quarter (2)
Revenue analysis by quarter (2) Sales in €m (1) Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4 12/11 Q4 12/11 revised comparable(2) Industrial Merchant 1,256 1,281 1,283 1,322 1,307 +4.1% +2.2% Large Industries 1,174 1,262 1,204 1,253 1,296 +10.4% +7.7% Electronics 291 302 308 308 304 +4.6% +1.7% Healthcare 592 5
Slide 42: G&S Revenue growth by quarter (3)
G&S Revenue growth by quarter (3) Growth as Natural Significant Comparable Currency published Gas scope growth(1) Q2 2011 (2) +8.1% +1.6% -3.2% - +9.7% Q3 2011 (2) +5.9% +1.0% -1.9% -0.9% +7.7% Q4 2011 (2) +3.5% +1.5% +0.8% -0.7% +1.9% Q1 2012 +6.3% +0.7% +2.2% -0.6% +4.0% Q2 2012 +4.9% +0.0% +4.6%
Slide 43: Growth in Q4 2012 G&S revenue
Growth in Q4 2012 G&S revenue +4.6% in €m comparable (1) +54 3,585 3600 +61 +153 +4 3,313 3200 +8.2% published 2800 growth 2400 2000 0 2011 Comparable Natural gas Change Scope 2012 growth (1) (1) excluding currency, natural gas and significant perimeter impacts. 43 February 14, 2013 2012 Results Air
Slide 44: 2012 Revenue breakdown by region
2012 Revenue breakdown by region 22% Americas Europe Gas & Services 2012 Revenue 50% €13.9bn 25% Asia-Pacific 3% Middle-East and Africa Europe: €7.0bn Americas: €3.1bn Asia-Pacific: €3.4bn 2% 8% 24% 31% 11% 28% 37% 48% 5% 33% 34% 39% Industrial Merchant Large Industries Healthcare Electronics 44 Feb
Slide 45: Europe in Q4
Europe in Q4 Electronics Q4 Gas & Services sales: €1,827m Industrial 3% 2% Merchant ■ Industrial Merchant Healthcare 30% 30% Continued weakness in Southern Europe 39% Large 38% Industries Acquisitions in UK and Eastern Europe Q4 12/11 Comparable change (1): +2.3% Pursued pricing actions ■ Larg
Slide 46: Americas in Q4
Americas in Q4 Electronics Q4 Gas & Services sales: €797m Healthcare 8% 7% ■ Industrial Merchant 11% Industrial Merchant 46% Sustained activity across the region 32% Acquisitions 36% Solid pricing effect Large Industries ■ Large Industries Q4 12/11 Comparable change (1): +7.6% Strong H2 dema
Slide 47: Asia-Pacific in Q4
Asia-Pacific in Q4 Electronics Q4 Gas & Services sales: €868m 24% 24% 37% Industrial Merchant Healthcare 5% 5% ■ Industrial Merchant 34% 34% Still weak in Japan Large Industries Back to double digit growth in China Q4 12/11 Comparable change (1): +6.2% ■ Large Industries Strong growth and star
Slide 48: Industrial Merchant pricing
Industrial Merchant pricing Q4 2012 FY 2012 +0.8% Europe + 0.9% + 4.3% Americas + 3.4% + 2.4% Asia-Pacific + 1.0% + 5.9% Middle-East and Africa + 6.4% + 2.4% Total Industrial Merchant + 1.9% 48 February 14, 2013 2012 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 49: Engineering & Construction
Engineering & Construction In €m 2011 2012 Consolidated revenues 705 785 OIR(1) margin 10.6% 10.0% Total order intake 1,010 1,704 Total orders-in-hand 3,200 4,000 3% Total Orders-in-hand ASU 7% breakdown HyCO 14% at Dec 31, 2012 Traditional energy 49% Alternative energy 27% Renewable energy (1) incl
Slide 50: Operating margin – natural gas effect
Operating margin – natural gas effect Group, in €m 2011 2012 Revenue 14,457 15,326 Incl. Natural gas effect +17 Operating income recurring 2,409 2,560 Operating margin 16.7% 16.7% Operating margin excluding natural gas 16.7% Gas and services, in €m 2011 revised (1) 2012 Revenue 13,064 13,912 Incl. N
Slide 51: Operating margin (OIR/Revenue)
Operating margin (OIR/Revenue) H1 09 H2 09 2009 2009 Group 15.0% 17.6% 16.3% Gas & Services 18.1% 21.0% 19.6% H1 10 H2 10 2010 2010 Group 16.6% 16.8% 16.7% Gas & Services 19.2% 19.2% 19.2% H1 11 H2 11 2011 2011 Group 16.7% 16.6% 16.7% Gas & Services (1) 19.0% 18.8% 18.9% H1 12 H2 12 2012 2012 Group
Slide 52: Gas & Services capex by geography
Gas & Services capex by geography G&S 2012 Investments(1) G&S Investments(1) / €2.8bn sales 2011 2012 Middle East - Africa Europe 11.0% 21.3% 8% Europe Americas 14.8% 16.8% Asia-Pacific 20% Asia-Pacific 17.1% 17.0% 53% Middle East and 19% Africa 46.2% 64.2% Americas Total 14.2% 20.4% (1) Industrial
Slide 53: Financing structure
Financing structure At 31 December 2012 Sources Maturity(1) Fixed/variable In €m rates Bank Market debt debt: 8000 Fixed rate 72% 7000 26% 6000 74% > 2016 > 2017 Minorities 5000 2% 51% options 6% 4000 Commercial paper Bonds 26% 15% 3000 2014 to 2017 Private 2000 placements 1000 Variable rate 2013 0
Slide 54: Evolution of number of shares
Evolution of number of shares In thousands of shares 29,004 664 312,281 283,813 <1,200> Average number of shares outstanding in 2012 311,147 shares Dec 31, 2011 Cancellation of Free share Options exercised Dec 31, 2012 shares purchased by attribution the company 54 February 14, 2013 2012 Results Air
Slide 55: Regular and sustained performance
Regular and sustained performance 15 000 Revenue (in €m) EPS(1) (in €) 5 12 500 +6.7% CAGR over 30 years(3) +8.2% CAGR over 30 years(3) 4 10 000 3 7 500 2 5 000 1 2 500 0 0 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 1982 1984 1986 1988 1990 1992 1994 1996 1998 20
Slide 56: For further information, please contact
For further information, please contact: Investor Relations Communications Virginia Jeanson + 33 (0)1 40 62 57 37 Anne Bardot + 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 Bastien Maurice + 33 (0)1 40 62 59 38 www.airliquide.com Fol