Air Products And Chemicals, Inc. · NYSE:APD
Air Products And Chemicals — Investor Presentation (September 2014)
35 slides from Air Products And Chemicals's investor presentation, Sep 18, 2014
Slide 1: Create Shareholder Value
Create Shareholder Value Seifi Ghasemi Chairman, President and Chief Executive Officer September 18, 2014 Exhibit 99.1
Slide 2: Forward looking statements
Forward looking statements Note: This presentation contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about earnings guidance, business outlook and the Company's future plans, objectives, estimates and
Slide 3: Air Products today
Air Products today $10.2 billion in sales 21,600 employees 50+ countries on Fortune 500 list 7+ decades in business 170,000+ customers miles of industrial gas pipeline 750+ production facilities 30+ industries served
Slide 4: Air Products global presence
Air Products global presence 41% U.S./Canada 26% Europe 25% Asia 8% Latin America
Slide 5: First Days
First 75 Days
Slide 6: Observations – First Days
Observations – First 75 Days • Air Products has the people, technologies, and geographic footprint to deliver industry-leading performance • The people of Air Products are ready for the significant changes necessary to regain the leadership position we enjoyed 20 years ago • We will unlock the value
Slide 7: Moving Forward
Moving Forward
Slide 8: Today’s Agenda
Today’s Agenda Strategy Path Forward • Mission • Our Goal • Management Principles • Our Plan • Q4 FY14 • Summary • Competitive Advantage
Slide 9: Our Mission
Our Mission Create Shareholder Value
Slide 10: Our Goal
Our Goal Air Products will be the safest and the most profitable industrial gas company in the world, providing excellent service to our customers
Slide 11: Safest
Safest • The only acceptable goal is zero accidents • Maintaining a safe workplace is a fundamental and moral responsibility
Slide 12: Most Profitable
Most Profitable As measured by: • EBITDA as a percent of Sales • Operating Profit as a percent of Sales • Return on Capital
Slide 13: Our Goal
Our Goal Air Products will be the safest and the most profitable industrial gas company in the world, providing excellent service to our customers
Slide 14: Management Principles
Management Principles
Slide 15: Management Principles
Management Principles CEO Focus Capital allocation is the most important job of the CEO Operating Model Decentralized organization releases entrepreneurial energy and minimizes costs and politics Shareholder Value Cash is king; cash flow drives long-term value What counts in the long term is the inc
Slide 16: Our Plan
Our Plan
Slide 17: Our Point Plan
Our 5 Point Plan Focus on the Core Restructure the Organization Change Company Culture Control Capital / Costs Align Rewards
Slide 18: Our Plan – Focus on the Core
Our Plan – Focus on the Core • We are an Industrial Gas company and will continue to be going forward • Strengthen our integrated supply networks and build density • Selective geographic participation where we are advantaged • Sale of gas and sale of equipment at attractive returns
Slide 19: Our Plan – Focus on the Core
Our Plan – Focus on the Core Products Integrated Supply Modes Our Core Businesses Participate based on Profitability • Performance Materials & Electronic Materials • Energy-from-Waste • Atmospheric Gases: O , N , Ar • Process & Specialty Gases: H , He, CO • Equipment: LNG, He Containers • Onsite / P
Slide 20: Our Plan – Restructure Organization
2. Our Plan – Restructure Organization • Decentralized organization • Geographic focus and alignment • Empowered and accountable business managers • Reduced and streamlined management layers • Detailed operating metrics
Slide 21: Our Plan – Reporting Segments
Our Plan – Reporting Segments Energy from Waste Gases - Americas Gases - EMEA Global Gases Corporate Materials Technologies Gases - Asia $3,900 38% $2,100 21% $1,600 16% $310 3% $420 4% n/a $1,900 18% Industrial Gases (FY13 Revenue $MM, %)
Slide 22: Our Plan – New Organization
Our Plan – New Organization Chairman, President & CEO S. Ghasemi SVP & CAO J. Stanley SVP & CFO S. Crocco VP Energy from Waste D. Taylor VP HR J. Grant President Americas C. Painter President EMEA I. Bols VP Ops. Excel. R. Boocock Joint Ventures S. Ghasemi Mexico India Thailand S. Africa Italy EVP M
Slide 23: Our Plan – Change Culture
3. Our Plan – Change Culture Self-Confidence • Every employee at Air Products is as capable, or more capable than, any one of our competitors’ employees • As a team, we can and will be the best • We are a team working together to win • We are not just doing a job, we are committed to excellence Safe
Slide 24: Our Plan – Control Capital / Costs
4. Our Plan – Control Capital / Costs Capital Allocation • We will not spend more than we can afford • We have raised required project returns and lowered delegations of authority for capital spend Cost / Efficiency Program • Reduce Corporate overhead • Drive operational improvement across the netwo
Slide 25: Our Plan – Align Rewards
5. Our Plan – Align Rewards • Annual incentive plan based on aggressive EBITDA targets at business unit level • Long-term equity plan totally aligned with shareholder value creation • Significant stock ownership by senior management
Slide 26: Our Plan – Point Plan Summary
Our Plan – 5 Point Plan Summary Restructure Organization Decentralize Geographic alignment Control Capital/Costs Capex Hurdle rates Corporate cost Ops. / Dist. efficiency Change Culture Safety Simplicity Speed Self-confidence Align Rewards Reward performance EBITDA / value creation target Focus on t
Slide 27: Fourth Quarter Guidance
Fourth Quarter Guidance
Slide 28: Fiscal Year 2014 – 4th Quarter
Fiscal Year 2014 – 4th Quarter • Guidance was $1.60 - $1.65 EPS • Today we are reconfirming our guidance; midpoint would be the highest quarterly earnings the Company has ever achieved by over 10%
Slide 29: Summary
Summary Mission Create value for shareholders Our Goal Be the safest and most profitable Management Principles Cash is king Capital allocation Decentralized organization
Slide 30: Summary
Summary Our Plan Industrial gases Focus on the Core Geographic focus Restructure the Organization Safest, Simplicity, Speed, Self-confidence Change Company Culture Raise hurdle rates / overhead and efficiency Control Capital / Costs EBITDA short-term / TSR long-term Align Rewards
Slide 31: Our Competitive Advantage
Our Competitive Advantage The only sustainable element of long-term competitive advantage is the degree of commitment and motivation of the people in the enterprise
Slide 32: Moving Forward
Moving Forward
Slide 33: tell me more
tell me more Thank you tell me more
Slide 34: Our Plan – Reporting Segments
Our Plan – Reporting Segments Energy from Waste Gases - Americas Gases - EMEA Global Gases Corporate Materials Technologies Gases - Asia $3,900 38% $2,100 21% $1,600 16% $310 3% $420 4% n/a $1,900 18% Industrial Gases (FY13 Revenue $MM, %) • Onsite / Pipeline – Air Separation Unit (ASU) – O , N , Ar
Slide 35: Appendix: Guidance
Appendix: Guidance EPS Guidance Diluted Q4 Guidance EPS (1) Q413 GAAP $0.70 Business Restructuring Charge $0.74 Advisory Costs $0.03 Q413 Non GAAP $1.47 Q414 Guidance $1.60-$1.65 % Change 9%-12% Diluted Full Year Guidance EPS (1) FY13 GAAP $4.73 Business Restructuring Charge $0.74 Advisory Costs $0.
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