Air Liquide SA · EURONEXT:AI
Air Liquide SA — H1 2011 Earnings Presentation
46 slides from Air Liquide SA's earnings presentation, Aug 1, 2011
Slide 1: Strong 2011 First Half activity
Strong 2011 First Half activity Benoît Potier, Chairman and CEO Paris, August 1, 2011 Fabienne Lecorvaisier, Chief Financial Officer
Slide 2: 2011 First Half
2011 First Half Gas & Services activity level high Solid operating performance … achieved in an unsettled economic environment Further investments and new projects Strategy of global presence and early market positioning Air Liquide, the world leader in gases for industry, health and the environment
Slide 3: Key figures
Key figures H1 11/10 11/10 In €m change change 2011 as published comparable* Group revenue 7,115 +9.2% +8.3% Gas & Services revenue 6,356 +11.6% +10.5% Operating income recurring 1,191 +9.9% Net profit (Group share) 750 +11.1% Operating Cash Flow 1,341 +6.0% Net Debt at June 30 5,580 - 111 * excludi
Slide 4: Continued solid growth in Gas & Services
Continued solid growth in Gas & Services Comparable* sales growth in G&S 2009 2010 2011 12% + 11.0% + 11.3% + 11.4% + 10.7% + 9.7% 10% + 8.3% 8% 6% 4% 2% 0% -2% -4% - 4.2% - 4.6% -6% - 5.1% - 5.2% Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 * excluding impact of c
Slide 5: Operating performance regularity
Operating performance regularity Gas & Services revenue Efficiencies In €bn In €m 5.7 6.4 335 7 5.0 280 6 300 2011 objective: 5 4 + 10.5 % (1) 200 > €200 m ALMA 2015 3 ALMA ALMA 2 100 1 132 0 0 H1 2009 H1 2010 H1 2011 2009 2010 H1 2011 Net Capex (2) Net debt In €bn In €bn 2 6 5.7 5.7 5.6 1.7 1,5 1.4
Slide 6: Exceptional economic situation and events
Exceptional economic situation and events Energy cost inflation Fragility of the Euro zone Instability in North Africa and the Middle East Japanese earthquake and floods in Australia Air Liquide, the world leader in gases for industry, health and the environment H1 2011 Results - August 1, 2011 6
Slide 7: High activity level Solid operating performance
2011 First Half activity High activity level Solid operating performance Fabienne Lecorvaisier, Chief Financial Officer
Slide 8: High Gas & Services activity level…
High Gas & Services activity level… G&S quarterly activity index * 2008 average base 100 115 2009 2010 2011 110 105 100 95 90 85 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 * comparable revenue, adjusted for the number of days per month Air Liquide, the world lead
Slide 9: … in all regions
… in all regions H1 2011 Comparable growth* H1 2011/10 Q1 2011/10 G&S sales Start-ups and site takeover Europe +7.1% Strong IM in Developing Europe €3,297m +7.3% Healthcare: Homecare acquisitions Dynamic chemical sector demand Americas +10.1% Positive pricing in IM €1,409m +10.5% Healthc
Slide 10: Developing economies momentum
Developing economies momentum Comparable* G&S sales growth G&S sales share (H1 2011 / H1 2010) in developing economies 21% + 9% + 7% + 3% + 22% 15% + 37% + 11% + 16% 2008 H1 2011 Advanced economies Developing economies + 7% + 28% * excluding impact of currency and natural gas Air Liquide, the world
Slide 11: Gas & Services growth: +10.5% in H1
Gas & Services growth: +10.5% in H1 Industrial Merchant: +3.1% in H1 Large Industries: +17.4% in H1 +8% +21% +22% 8% +5% +5% 20% +17% +17% +4% +2% +2% +14% +13% 3% 15% 10% -2% 5% +1% -7% -7% 0% -9% -12% -11% -5% -3% -4% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 H1 2011 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2009 2009 201
Slide 12: Engineering & Construction: increased order intake
Engineering & Construction: increased order intake Third-party E&C sales E&C order intake In €m In €m 505 490 H1 Year 500 1500 388 1250 400 363 290 1000 300 750 200 500 800 100 250 420 513 350 0 0 H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 2008 2009 2010 2011 Sales in line with investment cycle Strong
Slide 13: Other activities contribution
Other activities contribution Welding-Cutting Specialty Chemicals moderate recovery and Diving growth 20% 20% +19% +12% +15% +10% +10% +11% +12% +9% 10% +7% +8% 10% +8% +6% +4% +4% +3% +3% +1% 0% 0% -2% -1% -1% -6% -10% -7% -8% -10% -8% -20% -20% -30% -27% -30% -29% -34%-35% -40% -40% Q1 Q2 Q3 Q4 Q1
Slide 14: Increased Operating margin
Increased Operating margin In €m H1 2010 H1 2011 Change Revenue 6,516 7,115 + 9.2 % Purchases (2,425) (2,794) Personnel expenses (1,197) (1,245) Other income and expenses (1,260) (1,313) Operating Income Recurring before 1,633 1,763 + 8.0 % amortization/depreciation Amortization/ Depreciation (549)
Slide 15: Efficiencies in advance of annual objective
Efficiencies in advance of annual objective H1 2011 Efficiencies Efficiencies breakdown In €m 335 300 280 Reorganization Industrial and and overheads 230 Objective: logistics > €200 m/year efficiencies 200 132 100 0 Purchasing 2008 2009 2010 2011 globalization H1 Year Air Liquide, the world leader i
Slide 16: Gas & Services margin maintained
Gas & Services margin maintained G&S operating margin 19.2 % 19.2 % * +123 <13> M€ 1,206 1 200 + 96 0 + 32 1,091 <122> + 31 1 100 1 000 900 800 0 OIR OIR S1 09 Effet volume Growth Effet Energie Energy Augmentation Cost Pricing Prix hors Efficacités Efficiency _ Change / Currency S1 10 H1 10 pass des
Slide 17: Significantly increased net income
Significantly increased net income In €m H1 10 H1 11 Change Operating income recurring 1,084 1,191 + 9.9 % Other non-recurring operating income 20 0 & expenses Operating income 1,104 1,191 + 7.9 % Net financial costs and other net financial (163) (148) expenses Income taxes (253) (274) Tax rate 26.9
Slide 18: Changes in debt firmly under control
Changes in debt firmly under control In €m <767> +92 <5,580> <5,039> +541 <789> +1,341 <418> Gearing Industrials: € <810> m Gearing 55.3% Financials: € <61> m 56.5% * Divestitures: €+81 m Net debt Cash Net Net Share related Forex / Net debt Dec 31, 2010 Flow WCR Investments operations** Scope/ Ju
Slide 19: Further investments and new projects
2011 First Half activity Further investments and new projects Global presence and early market positioning strategy Benoît Potier, Chairman and CEO
Slide 20: Further investments …
Further investments … 12-month portfolio Investment Industrial and Number of of opportunities decisions financial capex* start-ups ** 45 In €bn In €bn In €bn 24 2.2 1.7 3.7 3.9 3.7 1.4 0.7 0.9 0.8 15 1.1 1.0 789 3.0 3.0 2.9 6 H1 H1 H1 H1 H1 H1 2009 2010 2011e 2012e Dec-09 Mar-11 Jun-11 2009 2010 201
Slide 21: …in all business lines
…in all business lines H1 2011 investment decisions New units and site E&C Large takeovers Electronics Industries Targeted liquid capacity Healthcare Supply chain € 970m New technologies and applications Efficiency projects Industrial Merchant Maintenance and safety Acquisitions Air Liquide, the wor
Slide 22: Global presence and early market positioning strategy
Global presence and early market positioning strategy New countries Decisions* 2010 + H1 2011 Germany Russia Ukraine South Korea United States France Italy Turkey China Japan Qatar Mexico India Taiwan Panama Saudi Arabia Philippines Brazil Chile Australia € 3.2 bn decisions since 2010 Americas Europ
Slide 23: Europe sales: + €3bn over 10 years
Europe sales: + € 3 bn over 10 years Sales G&S Europe Eastern Europe Central Europe In €bn Western Europe 7 6 5 4 a m ani 3 Ro k ey ria ia Tur r u lga R uss ine sse B ra 2 Me Uk 1 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 E Air Liquide, the world leader in gases for industry, health a
Slide 24: Eastern Europe: a €5bn market in 2015
Eastern Europe: a €5bn market in 2015 Western Europe Central Europe Eastern Europe Russia Poland Czech Rep. Ukraine Slovakia Hungary Romania Bulgaria Turkey Large Industries Industrial Merchant Electronics H1 Decisions New production sites Air Liquide, the world leader in gases for industry, health
Slide 25: Central and Eastern Europe: 40% of Europe 2011-2015 growth
Central and Eastern Europe: 40% of Europe 2011-2015 growth Share of investment Share of Europe G&S sales Décisions ** 2011-2015 growth Developing Europe Developing Europe vs Europe vs Europe 30% 28% 25% 20% 14% 17% ~ 40% X4 15% 10% 13% 5% 5% 0% 2007 2008 2009 2010 H1 2010 2015 E 2011 * Developing Eu
Slide 26: Outlook
2011 First Half activity Outlook Benoît Potier, Chairman and CEO
Slide 27: H1 in line with 2015 ambition
H1 in line with 2015 ambition Sales growth Efficiencies + 8 to + 10% € > 200 m in a normal environment per year on average H1 2011: +9.2% H1 2011: € 132 m Air Liquide, the world leader in gases for industry, health and the environment H1 2011 Results - August 1, 2011 27
Slide 28: 2011 Outlook
2011 Outlook * H1 2011 Sustained activity Solid operating performance 2011 objective maintained Continued steady growth of net profit in 2011 * in a normal environment Air Liquide, the world leader in gases for industry, health and the environment H1 2011 Results - August 1, 2011 28
Slide 29: Appendices
2011 First Half activity Appendices - Consolidated statements - Activity analysis
Slide 30: Consolidated P&L
Consolidated P&L In €m H1 2010 H1 2011 Revenue 6,516 7,115 Cost of goods (4,883) (5,352) Operating income recurring before depreciation 1,633 1,763 Depreciation and amortization expense (549) (572) Operating income Recurring 1,084 1,191 Net non-recurring operating income 20 0 Operating income 1,104
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet In €m ASSETS 31/12/10 30/06/11 EQUITY AND LIABILITIES 31/12/10 30/06/11 Goodwill 4,391 4,315 Shareholders’ equity 8,904 8,727 Fixed assets 11,707 11,655 Minority interests 209 206 Other non-current assets* 973 960 Total equity 9,113 8,933 Total non-current assets 17,071 16
Slide 32: Cash Flow statement
Cash Flow statement In €m H1 10 H1 11 Funds provided by operations 1,266 1,341 Changes in working capital (207) (424) Other items 0 6 Net cash from operating activities 1,059 923 Purchase of PPE* and intangible assets (665) (810) Purchase of financial assets (158) (60) Proceeds from sale of PPE*, in
Slide 33: Number of outstanding shares
Number of outstanding shares Number of shares Average number of outstanding as shares outstanding at June 30, 2011 in H1 2011 283,668,505 282,616,161 Air Liquide, the world leader in gases for industry, health and the environment H1 2011 Results - August 1, 2011 33
Slide 34: Appendices
2011 First Half activity Appendices - Consolidated statements - Activity analysis
Slide 35: H1 G&S comparable revenue growth: +10.5%
H1 G&S comparable revenue growth: +10.5% + 11.6 % In €m + 10.5 % comparable* published 7 000 599 60 2 6,356 6 000 5,695 5 000 4 000 3 000 2 000 0 H1 2010 Comparable Natural Gas Change H1 2011 growth* *excluding forex and natural gas Air Liquide, the world leader in gases for industry, health and the
Slide 36: H1 Revenue breakdown by region
H1 Revenue breakdown by region Americas Europe 22% H1 2011 Gas & Services revenue: 52% 24% €6.4bn Asia 2% Middle East & Africa Europe: €3.3bn Americas: €1.4bn Asia: €1.5bn 5% 8% 10% 27% 24% 33% 37% 47% 4% 35% 38% 32% Industrial Merchant Large Industries Healthcare Electronics Air Liquide, the world
Slide 37: Europe in Q2: regular growth
Europe in Q2: regular growth 4% Industrial Merchant Sales Gas & Services Q2: 24% 33% € 1,651 m Strong growth in Developing 39% Europe Advanced Europe flat excluding internal reclassifications Comparable growth Q2 11/10: +7.0%* Stabilised prices - 1.4% Industrial Merchant Large Industries L
Slide 38: Americas in Q2: sustained growth
Americas in Q2: sustained growth 9% Sales Gas & Services Q2: 10% Industrial Merchant € 699 m 46% Continued recovery in North 35% America Positive pricing Comparable growth Q2 11/10: + 9.8%* Strong momentum in Argentina Large Industries +6.3% Industrial Merchant Site takeover and ramp-ups
Slide 39: Asia in Q2: growth momentum despite Japan
Asia in Q2: growth momentum despite Japan Sales Gas & Services Q2: 27% Industrial Merchant 37% € 746 m 4% New liquid capacities in China 32% Japanese earthquake impact Large Industries Comparable growth Q2 11/10 : +15.5%* Numerous ramp-ups in China Strong H2 growth in Singapore +2.8% Ind
Slide 40: Engineering & Construction
Engineering & Construction In €m H1 2010 H1 2011 Consolidated revenues 388 290 OIR* margin 9.4% 9.9% Total order intake 420 513 Total orders-in-hand 4,200 4,100 Total orders-in-hand breakdown at June 30, 2011 ASU 4% 10% HyCO Traditional energy 14% 50% Alternative energy Renewable energy 22% * includ
Slide 41: Revenue analysis by quarter (1)
Revenue analysis by quarter (1) Sales in €m Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 11/10 Q2 11/10 published comparable* Europe 1,505 1,555 1,644 1,647 1,651 + 9.7% + 7.0% Americas 703 708 694 709 699 - 0.6% + 9.8% Asia-Pacific 655 697 733 759 746 + 14.0% + 15.5% Middle East 71 83 77 70 75 + 4.2% + 11.9% &
Slide 42: Revenue analysis by quarter (2)
Revenue analysis by quarter (2) Sales in €m Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 11/10 Q2 11/10 published comparable* Industrial Merchant 1,208 1,217 1,222 1,200 1,199 - 0.7% +2.2% Large Industries 950 1,036 1,097 1,133 1,121 +18.1% +17.3% Electronics 293 309 324 343 336 +14.6% +19.0% Healthcare 484 481
Slide 43: G&S revenue growth by quarter (3)
G&S revenue growth by quarter (3) Published Comparable Natural Gas Forex growth growth* Q1 2010 +8.3% -0.4% +0.4% +8.3% Q2 2010 +18.6% +1.6% +6.3% +10.7% Q3 2010 +21.0% +2.4% +7.6% +11.0% Q4 2010 +18.5% +0.8% +6.4% +11.3% Q1 2011 +15.4% +0.5% +3.5% +11.4% Q2 2011 +8.1% +1.6% -3.2% +9.7% * excluding
Slide 44: Impact of currency and natural gas on Gas & Services revenue
Impact of currency and natural gas on Gas & Services revenue Currency In €m Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 €/USD +30 +44 +35 +7 (59) €/CAD +25 +20 +16 +9 (10) €/JP¥ +31 +49 +44 +31 (3) Other +71 +79 +75 +49 (22) Total currency impact +157 +192 +170 +96 (94) Average exchange rates Q2 10 Q3 10 Q4 10 Q1
Slide 45: Operating margin (OIR/Revenue)
Operating margin (OIR/Revenue*) H1 08 H2 08 2008 2008 Group 14.9% 14.8% 14.9% Gas & Services 17.5% 17.8% 17.7% 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 2011 Excl. Published N
Slide 46: 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 Bastien Maurice + 33 (0)1 40 62 59 38 www.ai