Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — L'Air Liquide Ord — H1 2021 Earnings Presentation
43 slides from Air Liquide Sa's earnings presentation, Jul 29, 2021
Slide 1: H1 2021 Results
H1 2021 Results +15% sales growth in Q2 Continued significant margin improvement, +100bps High backlog of growth projects Benoît Potier, Chairman & Chief Executive Officer Jérôme Pelletan, Chief Financial Officer Paris, July 29, 2021 July 29, 2021 H1 2021 Results A world leader in gases, technologies and
Slide 2: Outstanding Financial Performance, High Backlog of Growth Projects
Outstanding Financial Performance High Backlog of Growth Projects Benoît Potier Chairman & Chief Executive Officer 2 July 29, 2021 H1 2021 Results A world leader in gases, technologies and services for Industry and Health 2
Slide 3: H1 2021 Key Highlights
H1 2021 Key Highlights ■ Q2 sales above 2019 in all regions and Business Lines ■ Outstanding financial performance ■ Major Healthcare societal contribution ■ Key achievements in energy transition projects ■ Strong & diversified backlog ensuring future growth 3 July 29, 2021 H1 2021 Results A world lea
Slide 4: Takeover of the Largest Air Gases Production Site Worldwide
Takeover of the Largest Air gases Production Site Worldwide 4 July 29, 2021 H1 2021 Results A world leader in gases, technologies and services for Industry and Health
Slide 5: Outstanding Performance in H1 2021
Outstanding Performance in H1 2021 vs. H1 19 H1 sales growth(1) +9 % +5% Q2 sales growth(1) +15% Group OIR margin(2) +100bps Recurring Net Profit excluding FX(3) +19% Cash Flow/sales(4) 23% (1) On a comparable basis (excluding currency, energy and significant scope impacts). Vs. 2019: calculated as th
Slide 6: Continued Group Sales Recovery vs. Low Q2 2020
Continued Group Sales Recovery vs. Low Q2 2020 vs. Q2 2020 +18% +12% +9% +8% Group comparable sales growth (%) 6 July 29, 2021 H1 2021 Results A world leader in gases, technologies and services for Industry and Health
Slide 7: Q2 Sales above Pre-Covid Level
Q2 Sales above Pre-Covid Level vs. Q2 2019(1) vs. Q2 2019(1) Europe +1% +7 % Asia-Pacific Americas +6 % +6% +4 % Middle-East Africa +16% +8 % +8% Group sales +6 % above Q2 2019 (1) Calculated as the sum of the comparable effects of 2020 and 2021 7 July 29, 2021 H1 2021 Results A world leader in gases
Slide 8: Major Healthcare Societal Contribution in H1 2021
Major Healthcare Societal Contribution in H1 2021 Full mobilization to supply O2 to Covid-19 patients INDIA BRAZIL RUSSIA SOUTH AFRICA x4 medical O2 production New access to medical O2 x6 medical O2 supply x4 medical O2 supply in isolated regions ▪ Supply chain to deliver ▪ With the Sustainable ▪ Su
Slide 9: Key Achievements in Energy Transition Projects in H1 2021
Key Achievements in Energy Transition Projects in H1 2021 Sustainability Day - Positioned to Capture Growth in the Energy Transition Europe Asia MoU / Partnerships ▪ 4 signed MoU / partnerships for H2 mobility >10 Signed in Korea and Japan ▪ Air Liquide’s technology for the world's EU/national fundi
Slide 10: Strong & Diversified Backlog Ensuring Future Growth
Strong & Diversified Backlog Ensuring Future Growth By End-Markets By Geographies Industrial Large Industries Merchant Europe 58% 25% 7% Asia-Pacific 29% Chemicals Electronics ~€ 3.1bn (1) ~€ 3.1bn (1) 34% 23% 21% Metals GM&T / HC Americas 8% Refining 12% 41% By Investment Sizes ▪ ~70 projects with ~€4
Slide 11: H1 2021 Performance
H1 2021 Performance Jérôme Pelletan Chief Financial Officer 11 July 29, 2021 H1 2021 Results A world leader in gases, technologies and services for Industry and Health
Slide 12: Very Strong YoY Sales Growth, Q2 +6% above 2019
Very Strong YoY Sales Growth, Q2 +6% above 2019 H1 21/20 H1 21/20 Q2 21/20 vs. Q2 19(1) Sales in €m H1 20 H1 21 As published Comparable Comparable Gas & Services 9,920 10,350 +4.3% +8.0% +13.7% +5% Engineering & 104 169 +61.9% +65.9% +83.6% Construction Global Markets & 249 327 +31.6% +34.9% +44.4%
Slide 13: Q2 – Americas and Europe well above 2019 Level
Q2 – Americas and Europe well above 2019 Level Americas Very high activity in LI and HC, increased IM pricing ■ U.S. air gases capacity fully loaded in June ● LI ■ Ramp-up in Latin America FY 20: -3.7% Sales ■ Gas sales above Q2 2019 ● IM ■ Growth in all end-markets, low Construction Q2 2021 ■ Incre
Slide 14: Q2 – Dynamic Activity in China, Strong IM in AMEI
Q2 – Dynamic Activity in China, Strong IM in AMEI Asia High momentum in all Business Lines ■ High air gases for Steel and Chemicals in China ● LI ■ Strong H2/CO in Korea and Singapore Sales Q2 2021 ■ +15% in China, mainly driven by Metal Fabrication ● IM and Electronic Components €1,176m ■ Sales in
Slide 15: Q2 – HC +9% on High Q2 20, IM Sales above 2019 Level
Q2 – HC +9% on High Q2 20, IM Sales above 2019 Level Healthcare Industrial Merchant Strong Medical gases, Home Healthcare catching-up Continued momentum H1 21: +9.4% H1 21: +8.5% Sales Sales Q2 2021 Q2 2021 €921m €2,342m +16% + 1% vs. Q2 19 vs. Q2 19 ● High Medical O2 for Covid-19, elective surgerie
Slide 16: Q2 – Dynamic LI, Strong EL Growth Drivers
Q2 – Dynamic LI, Strong EL Growth Drivers Large Industries Electronics High contribution from Steel and Chemicals All segments contributing to growth H1 21: +7.3% H1 21: +4.7% Sales Sales Q2 2021 Q2 2021 €1,471m €513m + 6% + 8% vs. Q2 19 vs. Q2 19 ● Continued strong Steel and high Chemicals, ● Sales
Slide 17: +100bps OIR Margin Improvement
+100bps OIR Margin Improvement H1 21/20 H1 21/20 In €m H1 20 H1 21 As published Comparable Revenue 10,273 10,846 +5.6% +9.2% Purchases (3,631) (4,079) +12.3% Personnel Expenses (2,183) (2,129) -2.5% Other net income and expenses (1,562) (1,641) +5.1% Operating profit before depreciation 2,897 2,997 +
Slide 18: Increased Pricing, Delivering Efficiencies & Portfolio Management
Increased Pricing, Delivering Efficiencies & Portfolio Management IM Pricing Efficiencies Portfolio Management €206m 5 divestitures: +2.4% Greece, France, U.S., Japan €400m H1 2021 11 bolt-on acquisitions: 2016 2017 2018 2019 2020 ■ Cumulated efficiencies €1.7bn U.S., Canada, Europe, China ■ Increased pri
Slide 19: Continued Focus on OIR Margin Improvement
Continued Focus on OIR Margin Improvement H1 2021 H2 2021 Structured existing plan ✓✓ + Cost containment plan Soft ✓ Group High H2 20 operating margin +100bps comparison improvement(1) basis Excl. energy impact (1) Operating Income Recurring on Sales, excluding energy pass through impact 19 July 29,
Slide 20: Strong Growth Leverage on Net Profit
Strong Growth Leverage on Net Profit H1 21/20 H1 21/20 In €m H1 20 H1 21 As published Excl. FX Revenue 10,273 10,846 +5.6% +10.4% Operating income recurring 1,813 1,948 +7.4% Other non-recurring operating income & expenses (92) (40) Operating income 1,721 1,908 Net financial costs and other net financi
Slide 21: Strong Cash Flow Allocated to Growth Capex and Dividends
Strong Cash Flow Allocated to Growth Capex and Dividends Cash Flow on sales(4) <13,176> 22.9% <1,384> <135> <162> <12,013> <10,609> +2,483 Gearing(3) <1,913> 64.5% Sasol €480m Gearing <293> Gearing(3) 55.8% 56.1% (1) Incl. acquisitions, transactions with minority shareholders, net of divestitures (2
Slide 22: Continued Momentum in Projects Activity
Continued Momentum in Projects Activity Investment Opportunities(1) Investment Decisions(1) Investment Backlog(1) €1.9bn Sasol €480m High level of opportunities Strong level of decisions in H1 2021 Strong and diversified Backlog ■ ~45% Energy transition ■ ~11%(2) linked to efficiency ■ Many projects li
Slide 23: Increased 2021 Sales Contribution with Sasol ASUs Takeover
Increased 2021 Sales Contribution with Sasol ASUs Takeover Start-up/Ramp-up Start-up date of major projects Sales Contribution Start-up date of major projects 2021 H1 2021 €130m Q1 Q2 Q3 Q4 Q2 2019 Q3 Q4 Asia US Asia Asia FY 2021 ~€320m Sasol Guidance Canada US US Takeover Kazakhstan Takeover Russia
Slide 24: Improving ROCE With Strong Investment Momentum
Improving ROCE With Strong Investment Momentum Recurring ROCE after tax(1) >10% 9.0% Objective of >10% ROCE by 2023-2024 Airgas acquisition (1) Recurring ROCE based on Recurring Net Profit 24 July 29, 2021 H1 2021 Results A world leader in gases, technologies and services for Industry and Health
Slide 25: 2021 Guidance Confirmed
2021 Guidance Confirmed Assumptions Guidance “In a context of recovery in 2nd half, nd ▪ Recovery in 2 half Air Liquide is confident in its ability to further increase its operating ▪ Sustained pricing, efficiency and margin and to deliver recurring net portfolio management profit(1) growth, at constant
Slide 26: Appendix
Appendix 26 July 29, 2021 H1 2021 Results A world leader in gases, technologies and services for Industry and Health
Slide 27: H1 2021 G&S Revenue Breakdown by Region
H1 2021 G&S Revenue Breakdown by Region Europe Europe Americas 35% 39% €3.7bn Americas Asia-Pacific €4.1bn €2.3bn €10,350m Gas & Services Revenue 5% 2% 11% 32% 29% 35% 31% 19% Africa Middle-East Asia-Pacific 65% 4% 23% 32% 35% 3% Industrial Merchant Large Industries Healthcare Electronics 27 July 29,
Slide 28: High SU/RU Contribution, Strong Base Business
High SU/RU Contribution, Strong Base Business Breakdown of G&S Sales Growth +12.6% Base business 2019 2020 2021 See definitions in appendix 28 July 29, 2021 H1 2021 Results A world leader in gases, technologies and services for Industry and Health
Slide 29: Americas
Americas Industrial Merchant Large Industries Healthcare Electronics ● Gas sales above Q2 2019. Low ● Strong air gases volumes in ● High Medical O2 for Covid-19 ● Strong Carrier Gases but improving hardgoods North America from ● Proximity Care in the U.S. ● Low E&I ● Growth in all end-markets. Chemi
Slide 30: Europe
Europe Industrial Merchant Large Industries Healthcare ● Sales >+3% above 2019 level ● Pursued strong Steel, high Chemicals, ● Sustained high Medical O2 ● All end-markets well oriented soft Refining especially in South of ● Lower ventilators sales vs. exceptional Europe demand in Q2 2020 ● High Easte
Slide 31: Asia-Pacific
Asia-Pacific Industrial Merchant Large Industries Electronics ● +15% in China, mainly driven by ● High air gases for Steel and Chemicals ● +9% growth in Carrier Gases, with RUs in ○ Metal Fabrication and Electronic in China China and Japan Components ● Strong H2/CO in Korea and Singapore ● Solid Adva
Slide 32: Industrial Merchant Pricing
Industrial Merchant Pricing Americas Europe Asia-Pacific Middle-East & Africa Total Industrial Merchant Q2 2021 % H1 2021 % 32 July 29, 2021 H1 2021 Results A world leader in gases, technologies and services for Industry and Health
Slide 33: Q2 2021 E&C and GM&T Activities
Q2 2021 E&C and GM&T Activities Engineering & Construction Global Markets & Technologies ▪ Strong recovery in sales vs. low Q2 20 ▪ Strong sales vs. low Q2 20, driven by high Total Sales (1) in Q2 21 +50% biogas activity €93m €172m Comparable sales growth Comparable sales growth ▪ Pursued momentum o
Slide 34: Maintained Strong Level of Backlog at €3.1bn
Maintained Strong Level of Backlog at €3.1bn Decisions Start-ups €1.0bn Yearly Sales Backlog after full Ramp-ups See definitions in appendix 34 July 29, 2021 H1 2021 Results A world leader in gases, technologies and services for Industry and Health
Slide 35: Consolidated P&L
Consolidated P&L In €m H1 20 H1 21 Revenue 10,273 10,846 Operating costs (7,376) (7,849) Operating profit before depreciation 2,897 2,997 Depreciation and amortization (1,084) (1,049) Operating income recurring 1,813 1,948 Other non-recurring operating income & expenses (92) (40) Operating income 1,7
Slide 36: Consolidated Balance Sheet Simplified
Consolidated Balance Sheet Simplified ASSETS 31/12/2020 30/06/2021 EQUITY AND LIABILITIES 31/12/2020 30/06/2021 Goodwill 13,087 13,435 Shareholders' equity 18,543 19,074 Fixed assets 21,401 22,774 Minority interests 462 500 Other non-current assets * 1,123 1,105 Total equity 19,005 19,574 Total non-c
Slide 37: Cash Flow Statement
Cash Flow Statement In €m H1 20 H1 21 Funds provided by operations 2,371 2,483 Changes in Working Capital (157) (267) Other cash items (61) (26) Net cash from operating activities 2,153 2,190 Purchases of PPE* and intangible assets (1,320) (1,439) Purchases of financial assets and the impact of chang
Slide 38: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue in €m Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 €/USD +55 +30 (86) (126) (165) (169) €/JP¥ +11 +11 (11) (9) (14) (25) €/ARS (16) (23) (10) (26) (18) (14) €/BRL (11) (22) (25) (23) (23) (6) Others +1 (26) (66) (62) (46) (6) Currency Impact +40 (30) (198) (246) (
Slide 39: Financing Structure as of June 30, 2021
Financing Structure as of June 30, 2021 Fixed / Variable rates Sources Maturity (gross debt) Private €m placements Commercial 8% 14,000 Fixed paper rate 5% 92% > 5 years 10,000 Bank debt 7% Between 1 and Others(1) 5,000 5 years 1% < 1 year 0 Bonds Variable 79% rate Market debt 8% 92% (1) Others: put
Slide 40: Investment Cycle – Definitions
Investment Cycle – Definitions ■ Investment opportunities at end of the period – Investment opportunities under consideration by the Group for decision within 12 months. – Industrial projects with investment value > €5m for Large Industries and > €3m for other business lines. – Includes asset replace
Slide 41: Regular and Sustained Performance
Regular and Sustained performance CAGR over 30 years(1) Revenue (in €m) EPS(2) (in €) +5.3% +6.7% Cashflow (in €m) Dividend(2) (in € per share) +6.5% +8.4% (1) Calculated according to prevailing accounting rules over 30 years (2) Adjusted for the 2-for-1 share split in 2007, for free share attributio
Slide 42: For further information, please contact
For further information, please contact: Investor Relations Communication IRTeam@airliquide.com Media@airliquide.com Upcoming events 2021 Third Quarter Revenue: October 22, 2021 www.airliquide.com Follow us on Twitter @AirLiquideGroup Corporate Headquarters: 75, Quai d’Orsay L’Air Liquide S.A. 75321
Slide 43: Disclaimer
Disclaimer This presentation may contain forward-looking statements (including objectives and trends) about Air Liquide’s financial situation, operating results, business activities and strategy. Although Air Liquide believes that the expectation reflected in such forward-looking statements are reason