Air Liquide SA · EURONEXT:AI
Air Liquide SA — Q1 2013 Earnings Presentation
36 slides from Air Liquide SA's earnings presentation, Apr 24, 2013
Slide 1: 2013 Q1 Activity
2013 Q1 Activity Growth investment decisions continue Cliquez Good pour modifier le style des resilience sous-titres du masque Jean-Pierre Duprieu Executive Vice-President Paris, April 24, 2013 Fabienne Lecorvaisier Chief Financial Officer
Slide 2: 2013 Q1 activity
2013 Q1 activity Paris, April 24, 2013 Year on year activity progressing Developments in growing markets Solid investment cycle Performance & Responsibility 2 April 24, 2013 Q1 2013 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 3: 2013 Q1 activity: Activity, Investments
2013 Q1 activity Fabienne Lecorvaisier Chief Financial Officer Activity Investments 3 April 24, 2013 Q1 2013 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 4: Key figures
Key figures Q1 2012 Q1 2013 Q1 13/12 Q1 13/12 Sales in €m as published Underlying activity Gas & Services 3,443 3,406 -1.1% +4.9% Engineering & Technology 178 147 -17.4% Excl. currency Other Activities 158 145 -8.0% and natural gas Group Total 3,779 3,698 -2.1% +0.2% 4 April 24, 2013 Q1 2013 Revenue
Slide 5: Q1 2013 G&S positive underlying trend
Q1 2013 G&S positive underlying trend G&S revenue growth analysis 6 +2% +4.9 % 5 4 3 +1.5% 2 +0.6% Underlying trend +1.9% +4.9% 1 0 -1 -1.1% -2 Q1 2013 as Forex Natural gas 2012 Working days Q1 2013 reported Customer Activity Settlements 5 April 24, 2013 Q1 2013 Revenue Air Liquide, world leader in
Slide 6: Moderate growth in a contrasted environment
Moderate growth in a contrasted environment G&S comparable growth(1) 2010 2011 2012 2013 12% +11.3% +11.4% +10.7% +11.0% 10% +9.7% +8.3% +7.7% 8% 6% +4.6% +4.0% 4% +1.9% +1.5%(2) 2% +1.6% +0.9% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (1) excluding the impacts of currency, natural gas and significa
Slide 7: Growth in Developing economies
Growth in Developing economies Comparable G&S sales growth(1) (Q1 2013/ Q1 2012) -1% +21% + 9% +1% (2) growth +5% -4% (2) +17% +13% 23% of G&S in Q1 2013 Developing economies (1) excluding the impact of currency, natural gas and significant scope. Advanced economies (2) also adjusted for the impact
Slide 8: Growth in Healthcare
Growth in Healthcare Q1 2013 Growth(1) +13% +12% growth(1) +8% +19% +5% 19% of G&S in Q1 2013 Healthcare presence (1) growth excluding currency impacts. 8 April 24, 2013 Q1 2013 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 9: All zones positive
All zones positive Comparable G&S sales growth(1) Total G&S +1.5% €3,406m +4.6% Industrial Merchant Home Healthcare Europe +0.2% in Southern Europe €1,769m +2.3% Developing economies Tariff pressure on Hospitals Americas(2) +3.2% Customer maintenance HyCO loading €766m +7.6% Merchant pricing Sea
Slide 10: Large Industries and Healthcare reaching 55% of G&S
Large Industries and Healthcare reaching 55% of G&S G&S Q1 2013 comparable growth(1) Industrial Merchant Large Industries +8% +7% +4% +4% +3% +3% (2) +2% +2% +1% +1% 37% 36% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Electronics Healthcare +14% +12% 8% 19% +2% LVL + Gasmedi +6% +5%
Slide 11: Pursued momentum in Engineering & Technology
Pursued momentum in Engineering & Technology E&T order intake(1) Third party E&T sales 1,942 785 In €m In €m 1000 300 252 750 718 200 188 178 556 167 147 500 448 417 100 251 250 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2012 2013 2012 2013 (1) including advanced Business and Technologies order intake. 11 Ap
Slide 12: Operational indicators in line
Operational indicators in line G&S sales Group Efficiencies 2013 Objective In €bn > 250 M€ In €m 4 80 3.4 3.4 3.2 66 3 2.8 60 59 59 60 2 40 1 20 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 0 2010 2011 2012 2013 0 2010 2011 2012 2013 Net Capex (1) Operating Cash flow (2) In €m 600 In €m 531 500 508 464 444 457 381 424 4
Slide 13: 2013 Q1 activity: Activity, Investments
2013 Q1 activity Jean-Pierre Duprieu Executive Vice-President Activity Investments 13 April 24, 2013 Q1 2013 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 14: Long investment cycle in Large Industries
Long investment cycle in Large Industries Opportunities under discussion Signature Construction Commissioning and revenue 12-month portfolio Industrial Industrial capex Start-ups and ramp-ups of opportunities Investment (for a capital intensity of 2) decisions In €M Revenue amount 100 100 100 4 year
Slide 15: 4-year time lag between decisions and sales
4-year time lag between decisions and sales Industrial projects (above € 10m investments) In €m 1200 700 600 1000 4 years 500 800 400 600 300 400 200 200 100 0 0 2006 2007 2008 2009 2010 2011 2012 2013 e 2014 e 2015 e Industrial investment decisions Incremental sales from industrial projects 15 Apri
Slide 16: Solid investment cycle
Solid investment cycle 12-month portfolio Investment of opportunities decisions(1) Net capex(1) Start-ups(2) In €bn In €m In €m 50 e 24 4.2 4.1 710 4.0 4.0 1.5 1.4 1.3 527 531 16 17 1.4 494 508 15 444 403 380 350 2.7 2.7 2.5 2.7 168 6 Dec- Jun- Dec- Mar- Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 Q1 09 Q1 10 Q1
Slide 17: Q1 2013 development initiatives
Q1 2013 development initiatives Home Healthcare acquisition H2 filling stations Chemical contract CO2 development Contract Carrier gases renewal Further outsourcing CO2 development Carrier gases € 710 m in Q1 Further CO2 development 2013 outsourcing Large industries Industrial Merchant Healthcare El
Slide 18: Performance & Responsibility
Performance & Responsibility 18 April 24, 2013 Q1 2013 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 19: Performance & Responsibility
Performance & Responsibility Ambition “To be the leader of our industry through performance and responsibility over the long term.” Strategic “Strengthening our competitiveness objective and innovation for profitable growth over the long term” 19 April 24, 2013 Q1 2013 Revenue Air Liquide, world lea
Slide 20: Increased recognition
Increased recognition 2012 Rewards and recognitions GS Sustain # 1 industrial gases AA Ethibel Excellence Sustanability index for the 9th consecutive year N° 1 Vigeo Euronext Vigeo in industrial 2nd best rating Europe 120 index gases Healthcare industry in Europe (1) AA rating since February 2012. 2
Slide 21: Achievements
Achievements Customers/patients satisfaction surveys 39% 66% in 2011 in 2012 Accident frequency rate 3.2 1.5 in 2002 in 2012 More than Micro initiatives for Communities 100 projects since 2008 HyCO unit energy consumption 100 98.4 in 2007 in 2012 Local codes of conduct deployment 55% 91% in 2008 in
Slide 22: Detailed report integrated within the Reference Document
Detailed report integrated within the Reference Document Corporate Social Responsibility and Sustainable Development report Detailed report: 170 indicators Audited since 2003 by statutory auditors 10 main 2015 objectives www.airliquide.com 22 April 24, 2013 Q1 2013 Revenue Air Liquide, world lead
Slide 23: 2013 Outlook
2013 Outlook Q1 2013 ■ Year on year activity progressing ■ Developments in growing markets ■ Solid investment cycle 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 23 April 24, 2013 Q1 2013 Revenue
Slide 24: Appendix
Appendix 24 April 24, 2013 Q1 2013 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 25: Q1 2013 G&S growth
Q1 2013 G&S growth G&S revenue growth analysis 6 5 4 +1.5% -1.4% 3 2 +1.5 % +0.6% +1.9% 1 Adjusted (1) 0 growth +1.5% -1 -1.1% -2 Q1 2013 as Forex Natural gas 2012 Customer LVL + Gasmedi Q1 2013 reported settlements Comparable (1) excluding the impact of currency, natural gas, significant scope and
Slide 26: Activity level growing year on year
Activity level growing year on year Quarterly G&S activity indicator(1) base 100, 2010 2011 2012 2013 average 2008 120 115 110 105 100 95 90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (1) revenue (excluding currency and natural gas), adjusted for the number of days per month. 26 April 24, 2013 Q1 2013 R
Slide 27: Impact of currency and natural gas on G&S revenue
Impact of currency and natural gas on G&S revenue Currency In €m Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 €/USD +18 +54 +56 +20 (3) €/CAD +4 +11 +16 +11 (2) €/JP¥ +21 +37 +30 (3) (40) Others +27 +48 +57 +33 (20) Total currency impact +70 +150 +160 +61 (65) Average rate Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 €/USD 1.31
Slide 28: Revenue analysis by quarter (1)
Revenue analysis by quarter (1) Q1 13/12 Q1 13/12 Sales in €m Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 as published comparable(1) Europe 1,747 1,724 1,728 1,827 1,769 +1.2% +0.2% (2) Americas 772 746 793 797 766 -0.8% +3.2% (2) Asia-Pacific 840 835 873 868 780 -7.2% +1.0% Middle-East 84 89 96 93 91 +8.9% +16.8
Slide 29: Revenue analysis by quarter (2)
Revenue analysis by quarter (2) Sales in €m Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q1 13/12 Q1 13/12 as published comparable(1) Industrial Merchant 1,281 1,283 1,322 1,307 1,254 -2.1% +0.5% (2) Large Industries 1,262 1,204 1,253 1,296 1,225 -3.0% +3.4% Electronics 302 308 308 304 268 -11.3% -6.3% Healthcare
Slide 30: G&S Revenue growth by quarter (3)
G&S Revenue growth by quarter (3) Growth as Significant Comparable Natural Gas Currency published scope growth(1) (2) Q4 2011 +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% -0.6% +0.9% Q3 2012 +6.5% -0.3% +4.9% +0.3% +1.6% Q4 2012 +8.2% +0.2% +1.8% +1.6
Slide 31: Q1 2013 Revenue breakdown by region
Q1 2013 Revenue breakdown by region Americas Europe 22% Gas & Services Q1 Revenue 52% €3,406m 23% Asia-Pacific 3% Middle-East and Africa Europe: €1.8bn Americas: €0.8bn Asia-Pacific: €0.8bn 2% 6% 11% 23% 30% 30% 36% 5% 48% 35% 38% 36% Industrial Merchant Large Industries Healthcare Electronics 31 Ap
Slide 32: Europe in Q1
Europe in Q1 ■ Industrial Merchant Q1 Gas & Services sales: € 1,769m Positive pricing Electronics Southern Europe still decreasing 2% 30% Double digit growth in Developing Healthcare 30% Industrial Merchant Europe ■ Large Industries 38% Large Industries HyCO demand improving Ramp-up in Rus
Slide 33: Americas in Q1
Americas in Q1 ■ Industrial Merchant Q1 Gas & Services sales: € 766m Strong pricing across the region Electronics Double digit growth in South 6% America Healthcare 11% Industrial Merchant Fracking seasonality in North America 48% 35% ■ Large Industries Large Industries Turnarounds in Jan an
Slide 34: Asia-Pacific in Q1
Asia-Pacific in Q1 ■ Industrial Merchant Q1 Gas & Services sales: € 780m China growth driven by small Electronics on-site and specialty gases Soft developing Asia excl. China Healthcare 23% Industrial Merchant Japan still decreasing 36% 5% ■ Large Industries 36% Large Industries Customer tur
Slide 35: Industrial Merchant pricing
Industrial Merchant pricing Q1 2013 FY 2012 +0.5% Europe + 0.9% + 2.9% Americas + 3.4% + 1.1% Asia-Pacific + 1.0% + 4.7% Middle-East and Africa + 6.4% + 1.5% Total Industrial Merchant + 1.9% 35 April 24, 2013 Q1 2013 Revenue Air Liquide, world leader in gases for industry, health and the environment
Slide 36: 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