Air Liquide SA · EURONEXT:AI
Air Liquide SA — L'Air Liquide — FY1999 Earnings Presentation
85 slides from Air Liquide SA's earnings presentation, Mar 1, 2000
Slide 1: Information Session March 1st 2000
INFORMATION SESSION M a r c h , 1 st 2 0 0 0 From the molecule to high value-added services Continuous creation of value 1
Slide 2: Note
Note The material on this website do not constitute an extension of a tender offer in the United States for Ordinary Shares or any other securities of The BOC Group plc. L ’Air Liquide S. A. and Air Products and Chemicals, Inc. intend to extend the offer into the United States, if and when made, in
Slide 3: Introduction
Introduction Alain Joly Achievements and 1999 global results Benoît Potier Results by businesses Results by geographical areas Alain Joly A new dimension – Acceleration in services: illustration – BOC Objectives and perspectives 3
Slide 4: Alain Joly
ALAIN JOLY Chairman and Chief Executive Officer 4
Slide 5: Achievements
Achievements A "top-line" growth strategy: Expand the offer – 50 large long-term contracts started in 1997-1999 Change dimension in healthcare – + 15.7% per year 1995-1999 Develop services A continuous cost reduction program 190 million euros cumulated 1997-1999 5
Slide 6: Impact of contracts signed in 1995-1999 on large contracts and pipeline sales
Impact of contracts signed in 1995 - 1999 on large contracts and pipeline sales In millions of euros 610 1,600 500 335 1,400 (obj. 315) 170 1,200 10 1,000 800 600 990 400 200 0 1997 1998 1999 2000 2001 New contracts 6
Slide 7: 1995-1999 Healthcare growth
1995 - 1999 Healthcare growth º Total: + 15.7% / year º Services: + 21.1% / year Million € 965 1,000 800 541 600 400 344 200 36% Services 160 30% 0 1995 1999 7
Slide 8: Growth of services
Growth of services In millions of euros (€) 1998 1999 99/98 Healthcare 271 344 + 27% Industry 221 258 + 17% Energy solutions 167 224 +33% Total services sales 660 826 +25% % of gases and services sales 14% 16% 8
Slide 9: 1999 key numbers
1999 key numbers Full year H2 Million € 99 / 98 99 / 98 Gases and services sales 5,254 + 10.2 % + 17.1 % Total sales 6,538 + 7.4 % + 14.1 % Operating income 935 + 10.4 % + 18.6 % Net earnings 563 + 9.1 % + 17.0 % Cash flow 1,308 + 13.1 % + 18.3 % EPS (in €) 6.86 + 9.6 % + 18.2 % 9
Slide 10: 1999 key numbers (FRF)
1999 key numbers Full year H2 Million FRF 99 / 98 99 / 98 Gases and services sales 34,464 + 10.2 % + 17.1 % Total sales 42,885 + 7.4 % + 17.5 % Operating income 6,133 + 10.4 % + 18.6 % Net earnings 3,691 + 9.1 % + 17.0 % Cash flow 8,583 + 13.1 % + 18.3 % EPS (in FRF) 44.98 + 9.6 % + 18.2 % 10
Slide 11: Achievements: compounded annual growth
Achievements Compounded annual growth 99 / 96 Gases and services sales + 9.9 % EPS + 10.2 % Cash flow + 12.9 % + Dividend payout ∃ 39.4 % 11
Slide 12: Achievements: a new dimension
Achievements: a new dimension A very dynamic new business model A strong base for the future In addition for 1999: launching a joint offer for the BOC Group 12
Slide 13: Benoit Potier
Benoit Potier Chief Executive 13
Slide 14: Top-line growth: acceleration of gases and services in H2 1999
"Top-line" growth: acceleration of growth of gases and services in H2 1999 Million € 1998 1999 1,600 1,479 1,500 1,400 1,302 1,300 1,275 1,192 1,201 1,206 1,198 1,200 1,169 1,100 1,000 Q1 98 Q2 98 Q3 98 Q4 98 Q1 99 Q2 99 Q3 99 Q4 99 Growth + 10.8% + 10.3% + 4.9% - 1.7% + 0.5% + 6.2% +11.4% +22.6% qu
Slide 15: Top-line growth: gases and services sales
" Top-line" growth: acceleration of growth of gases and services in H2 1999 + 10.2 % Million € + 5.8 % 6,000 5,254 (FRF 34,464 ) 4,768 5,000 4,507 3,961 + 17.1% 3,733 4,000 + 3.3% 2,781 3,000 2,473 2,000 1,000 0 1995 1996 1997 1998 1999 H1 1999 H2 1999 15
Slide 16: Cost reduction programs
Cost reduction programs Objective 1999 = 60 million euros (400 million FRF) Achieved 1999 = 69 million euros (450 million FRF) 27% Purchases 26% and other Production 47% Logistics Objective 2000 = 60 million euros (400 million FRF) 16
Slide 17: Continuation of growth of operating income
Continuation of growth of operating income + 10.4 % + 8.3 % Million € 935 (FRF 6,133) 1000 847 900 782 800 663 + 18.6 % 649 700 + 2.2% 600 504 500 431 400 300 200 100 0 1995 1996 1997 1998 1999 H1 1999 H2 1999 Ratio over sales 13.2% 12.7% 13.4% 13.9% 14.3% 14.1 % 14.5 % 17
Slide 18: Growth of net earnings
Growth of net earnings + 9.1 % Million € + 9.4 % 600 563 ( FRF 3,691) 516 471 406 423 + 17.0 % 400 + 1.1% 303 260 200 0 1995 1996 1997 1998 1999 H1 1999 H2 1999 Ratio over sales 8.3 % 8.1 % 8.1 % 8.5 % 8.6 % 8.5 % 8.7 % 18
Slide 19: Growth of EPS
Growth of EPS + 9.6 % + 9.4 % € 6.86 (FRF 44.98) 7 6.26 6 5.72 4.98 5.13 + 18.2 % 5 + 1.0% 3.71 4 3.15 3 2 1 0 1995 1996 1997 1998 1999 H1 1999 H2 1999 19
Slide 20: Very strong growth of cash flow
Very strong growth of cash flow + 13.1 % Million € 1,400 + 14.1 % (1) 1,308 (FRF 8,583) 1,300 1,157 (1) 1,200 1,014 910 + 18.3 % 1,000 861 + 7.3% 800 718 590 600 400 200 0 1995 1996 1997 1998 1999 H1 1999 H2 1999 Ratio over sales 17.5% 17.4% 17.3% 19.0% 20.0% 19.2 % 20.7 % 20 Note: (1) excluding cap
Slide 21: By business: sales
By business: sales In millions of euros (€) 1998 1999 99 / 98 99 / 98 % % Sales Ex. forex Gases and services 4,768 5,254 +10.2% +7.3% in which Industry 4,112 4,495 +9.3% +6.0% Healthcare 656 759 +15.7 % +15.2% Welding 647 623 -3.7% -5.7% Engineering & Construction 221 186 -15.8% -17.6% Diving & sund
Slide 22: By business: sales (FRF)
By business: sales In millions of FRF 1998 1999 99 / 98 99 / 98 % % Sales Ex. forex Gases and services 31,280 34,464 +10.2% +7.3% in which Industry 26,978 29,487 +9.3% +6.0% Healthcare 4,302 4,977 +15.7% +15.2% Welding 4,247 4,085 -3.7% -5.7% Engineering & Construction 1,447 1,222 -15.8% -17.6% Divi
Slide 23: Gases and Services: sales by segment
Gases and Services: sales by segment In % H1 H2 1999/98 1999/98 99/98 99/98 Ex. forex Large contracts and pipeline sales + 7.1 + 31.5 + 19.3 + 16.0 Electronics - 3.9 + 24.3 + 10.1 + 1.0 Merchant : small/medium customers + 1.4 + 7.8 + 4.6 + 2.6 Total industry + 2.3 + 16.3 + 9.3 + 6.0 Healthcare + 10.
Slide 24: By business: sales and operating income
By business: sales and operating income In millions of euros (€) 1998 1999 99 / 98 99 / 98 % % Sales Ex. forex Gases and services 4,768 5,254 +10.2% +7.3% Welding 647 623 -3.7% -5.7% Engineering & Construction 221 186 -15.8% -17.6% Diving & sundry 451 475 +5.3% +4.2% Total 6,087 6,538 +7.4% +4.8% Op
Slide 25: By business: sales and operating income (FRF)
By business: sales and operating income In millions of FRF 1998 1999 99 / 98 99 / 98 % % Sales Ex. forex Gases and services 31,280 34,464 +10.2% +7.3% Welding 4,247 4,085 -3.7% -5.7% Engineering & Construction 1,447 1,222 -15.8% -17.6% Diving & sundry 2,958 3,114 +5.3% +4.2% Total 39,932 42,885 +7.4
Slide 26: France: Gases and Services
France: Gases and Services % sales 22% In millions of euros % 99/98 € Sales Operating income 1,700 € 1,500 300 + 3.7% + 6.8% 250 (FRF 1,642) 1,138 (FRF 7,470) 200 1,000 + 13.6% + 0.2% + 13.4% - 5.7% 134 600 116 538 500 100 0 0 H1 1999 H2 1999 1999 H1 1999 H2 1999 1999 26
Slide 27: France: Gases and Services key facts in 1999
France: Gases and Services Key facts in 1999 Good industrial business conditions after a difficult beginning of the year (steel industry…) A very strong H2 fueled by services Start-up of large energy contracts (Rhodia at Feyzin, Lyondell at Fos-sur-Mer) Strong growth of homecare: acquisition of Orky
Slide 28: Europe (ex France): Gases and Services
Europe (ex France): Gases and Services % sales In millions of euros 29% % 99/98 € Sales Operating income 1,700 + 9.7% + 16.1% 1,547 (FRF 10,146) € 317 (FRF 2,078) 300 1,500 + 19.4% + 8.0% + 11.5% 200 + 12.5% 1,000 793 166 754 151 100 500 0 0 H1 1999 H2 1999 1999 H1 1999 H2 1999 1999 98/99 + 8.4% + 1
Slide 29: Europe (excluding France): key facts in 1999
Europe (excluding France): Gases and Services Key facts in 1999 Significant growth in a diversity of market conditions, with general improvement in H2 Coming into play of large contracts (Germany, Netherlands, Italy…) Expansion of the hydrogen pipeline network in Benelux Development of homecare Inte
Slide 30: Americas: Gases and Services
Americas: Gases and Services % sales In millions of euros 32% % 99/98 € Sales Operating income 1,700 + 10.7% 1,666 (FRF 10,928) € 300 1,500 + 5.9% + 22.2% 200 215 (FRF 1,409) 1,000 - 0,3% 898 + 16.3% 768 - 4.9% 121 94 100 500 0 0 H1 1999 H2 1999 1999 H1 1999 H2 1999 1999 98/99 + 2.6% + 14.4% + 8,4%
Slide 31: Americas (1): key facts in 1999
Americas: Gases and Services (1) Key facts in 1999 North America USA Strong growth of pipeline business after a recovery in Q2, very strong growth of hydrogen Semiconductors segment stable overall with a strong performance in H2 Development of homecare Weak merchant segment Canada Strong growth 31
Slide 32: Americas (2): key facts in 1999
Americas: Gases and Services (2) Key facts in 1999 South America Strong growth fueled by large contracts balancing the Brazilian Real devaluation 32
Slide 33: Asia Pacific: Gases and Services
15% Asia Pacific: Gases and Services % sales In millions of euros % 99/98 € 1,700 Sales Operating income 300 € 1,500 + 15.7% 200 + 25.8% 1,000 819 (FRF 5,371) 78 (FRF 511) + 23.8% + 28.1% +7.0% + 22.2% 447 100 372 500 37 41 0 0 H1 1999 H2 1999 1999 H1 1999 H2 1999 1999 98/99 + 0.1% + 0.8% + 0.6% + 1
Slide 34: Asia Pacific: key facts in 1999
Asia Pacific: Gases and Services Key facts in 1999 Japan Slight recovery in H2 after weak industrial business conditions Growth of semiconductor and medical gases North-East and South-East Asia Very strong growth in Taiwan Growth of "new countries" (Thailand, Philippines, Indonesia) 34
Slide 35: Investments
Investments In millions of euros Commitments Payments 1,512 1,434 1,438 1,600 1,345 1,400 1,268 1,200 1,061 1,045 974 920 1,000 800 666 600 400 200 0 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999 Fixed assets Acquisitions 35
Slide 36: Alain Joly
Alain Joly Chairman and chief executive officer 36
Slide 37: A new dimension
A new dimension 2003 • Acceleration of services •SERVICES: (gas and non to double share gas-related) in gases and 99 • Large contracts services sales gathering steam 2000 • BOC •BOC Acceleration of growth 97 • Large contacts coming into play • Contribution 94 95 of services Signature of large Puttin
Slide 38: Acceleration of growth of high value-added services
Acceleration of growth of high value-added services % of gas and services sales (Air Liquide base) Pursuing and accelerating existing actions 28% Acquiring new competences and businesses 25 Non gas-related 20 16% 14% 15 gas 10 7% related 5 0 91 92 93 94 95 96 97 98 99 2000 2001 2002 2003 Industry He
Slide 39: Growth in services: strengths and strategy
Benoit Potier Chief Executive Growth in services: strengths and strategy 39
Slide 40: A base of over 1 million customers to offer high added-value services
A base of over 1 million customers to offer high added-value services Industry services Healthcare services • Process control • Homecare • Asset • Hygiene management • Supply chain • Supply chain • Logistics • Energy solutions Technologies • e-business • Logistics • e-business Information technologi
Slide 41: Technologies: a growing on-site production service
Technologies: a growing on-site production service 2,700 FloxalTM contracts signed at end of 1999 + 18% sales growth in 1999 35% of merchant nitrogen 41
Slide 42: Technologies: Simulation
Technologies: Simulation Operating room air flows simulation 42
Slide 43: Information technologies: connecting Air Liquide and customers
Information technologies: connecting Air Liquide and customers Teleflo 43
Slide 44: Information technologies: connecting Air Liquide and customers
Information technologies: connecting Air Liquide and customers 44
Slide 45: Information technologies: automatic cylinder delivery at customer site
Information technologies: automatic cylinder delivery at customer site AccessTM 45
Slide 46: Information technologies: tracking mobile assets
Information technologies: tracking mobile assets OmnitraxTM 46
Slide 47: Growth in services: the healthcare business model
Yves Lyon Caen Senior Vice-President, Healthcare Vice-President, Growth in services: the healthcare business model 47
Slide 48: 1995-1999 Healthcare growth
1995 - 1999 Healthcare growth Million € + 15.7% / year 965 1,000 800 600 541 400 200 0 1995 1999 48
Slide 49: 1995-1999 Healthcare growth: additional sales and investment
1995 - 1999 Healthcare growth Additional sales : 424 million euros Investments ∃1 Sales Investment: 415 million euros Fixed assets: 255 Acquisitions: 160 49
Slide 50: Growth of services
Growth of services In millions of euros Annual 1995 1999 growth Homecare services 140 304 21% Hospital gas related services 20 40 19% 50
Slide 51: Homecare evolution
Homecare evolution Since the beginning of the 80's, the homecare business has been about delivering oxygen or installing equipment at patients' home ➝ logistic and transportation know-how Today homecare is in addition: training of the patient and the patient's family support of medical treatment (re
Slide 52: Homecare services
Homecare services Currently an enlarged offer of services: Oxygenotherapy Other respiratory services: sleep apnæa treatment and ventilation Perfusion and nutrition at home In addition, we are developping for the future: Homecare services coordination (e.g.: Medicasa) 52
Slide 53: Homecare: a growing number of patients
Homecare: a growing number of patients Number of patients Countries France (1) Tunisia 200,000 Italy Morocco Spain Canada 160,000 Portugal US 120,000 Greece Brazil 80,000 Germany Argentina 40,000 Belgium Chili Netherlands Japan 0 95 96 97 98 99 Denmark Australia Respiratory Oxygenotherapy (1) withou
Slide 54: Hospital: development of a new service offer
Hospital: development of a new service offer 1 Identify a crucial need of our customers (1995) 2 Acquire legitimacy through external growth (1996) 3 Create a new hospital service offer by combining the Air Liquide know-how with the newly acquired know-how 54
Slide 55: Hospital: identification of a crucial need of our customers
Hospital: identification of a crucial need of our customers (1995) Hospital acquired infections A major healthcare issue: Numerous deaths Costs Antibiotherapy resistance Traditional know-how and technics Vapour sterilization Chemical products based on old molecules A need for quality procedures impr
Slide 56: Hospital: acquire legitimacy
Hospital: acquire legitimacy Acquisition of 34% of Anios (1996), share increased to 66% (1999) : Sales = 47 million euros French leader in hospital disinfection products Acquisition of 100% of Schülke & Mayr (1996): Sales = 88 million euros German leader in hospital disinfection products A European
Slide 57: Hospital: creation of a new service offer
Hospital: creation of a new service offer by combining Air Liquide know-how with Anios and Schülke & Mayr know-how Launching of Exp'Air: auditing, cleaning, disinfecting air ducts in critical areas Expected sales in year 2000: 6 million euros Outsourcing of surgical instruments sterilization: An eme
Slide 58: Alain Joly
Alain Joly Chairman and Chief Executive Officer 58
Slide 59: BOC timetable
BOC timetable Where are we Obtention of Canadian (23 December, 1999) and European (18 January, 2000) regulatory approvals Discussions are continuing with FTC and with potential buyers of assets to be potentially divested in the US Announced timetable July 13, 1999 : announcement of a joint cash offe
Slide 60: BOC: a unique opportunity
BOC: a unique opportunity Short term impact About 40% of additional sales in gases and services 150 million euros of synergies in 3 years Earnings and cash flow enhancement – cash flow per share accretive from year 1 – EPS enhancement (pre-goodwill) from year 1 – EPS neutral in year 2 (post-goodwill
Slide 61: Outlook 2000
Outlook 2000 Good industrial business conditions Large contracts gathering steam Growth of services Cost reduction program Objective : a double digit growth of EPS not including BOC integration 61
Slide 62: Objectives
Objectives A very strong increase of EPS in 3 years: +50% Air Liquide – Sales increase large contracts gathering steam growth of services – Capex following a step-up, back to "cruising" level – slowdown of depreciation – decrease of financial charges – Continuation of cost reduction programs Contrib
Slide 63: Objectives
Objectives A very strong increase of EPS in 3 years: +50% ROE: 13% after integration then 14% Creating value every year, regularly increasing from year 2 after the acquisition of BOC 63
Slide 64: Appendixes
APPENDIXES 64
Slide 65: Growth of net earnings 1970-1999
Growth of net earnings 1970 - 1999 In million of euros 600 563 400 200 0 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 65 Note: Excluding exceptional operations and after minority interests
Slide 66: 1999 key facts
1999 key facts A strong overall performance, with an outstanding H2 compensating for the unusual weak business conditions at the beginning of the year 18 large contracts started Acceleration in services: creation of a Venture Service Division; acquisitions A continuous improvement of margins Launchi
Slide 67: 1999 Results
1999 Results In millions of euros (€) 1998 98/97 1999 99/98 % % Sales: Gases and services 4,768 5.8% 5,254 10.2% Gases & services (excluding foreign exchange) 7.8% 7.3% Total sales 6,087 4.0% 6,538 7.4% Operating income before depreciation 1,405 9.9% 1,583 12.7% Excluding foreign exchange 11.1% 10.2
Slide 68: 1999 Results (FRF)
1999 Results In millions of FRF 1998 98/97 1999 99/98 % % Sales: Gases and services 31,280 5.8% 34,464 10.2% Gases & services (excluding foreign exchange) 7.8% 7.3% Total sales 39,932 4.0% 42,885 7.4% Operating income before depreciation 9,220 9.9% 10,384 12.7% Excluding foreign exchange 11.1% 10.2%
Slide 69: Statement of consolidated earnings (1)
Statement of consolidated earnings (1) In millions of euros (€) 1998 1998/97 1999 1999/98 1999/98 % % % ex. forex* ex. forex* Sales 6,087 4.0% 6,538 7.4% 4.8% Sales gases and services 4,768 5.8% 5,254 10.2% 7.3% Cost of products sold, operating expenses and innovation costs 4,682 2.4% 4,995 5.8% 3.2
Slide 70: Statement of consolidated earnings (1) (FRF)
Statement of consolidated earnings (1) In millions of FRF 1998 1998/97 1999 1999/98 1999/98 % % % ex. forex ex. forex Sales 39,932 4.0% 42,885 7.4% 4.8% Sales gases and services 31,280 5.8% 34,464 10.2% 7.3% Cost of products sold, operating expenses and innovation costs 30,712 2.4% 32,501 5.8% 3.2%
Slide 71: Statement of consolidated earnings (2)
Statement of consolidated earnings (2) In millions of Euros (€) 1998 1998/97 1999 1999/98 1999/98 % % % ex. forex ex. forex Operating income 847 8.3% 935 10.4% 8.3% Financial results - 73 - 90 Companies by the equity method 40 -24.3% 39 - 2.5% Other income 13 28 Earning before income taxes 827 7.7%
Slide 72: Statement of consolidated earnings (2) (FRF)
Statement of consolidated earnings (2) In millions of FRF 1998 1998/97 1999 1999/98 1999/98 % % % ex. forex ex. forex Operating income 5,560 8.3% 6,133 10.4% 8.3% Financial results - 479 - 592 Companies by the equity method 261 -24.3% 256 - 2.5% Other income 83 184 Earning before income taxes 5,425
Slide 73: 1999 results by geographical area
1999 results by geographical area In millions of euros (€) 1998 1999 99/98 99/98 % % ex. forex Sales France 1,523 1,628 + 6.9 + 6.9 Europe excluding France 1,825 1,938 + 6.2 + 6.3 Americas 1,798 1,937 + 7,7 + 5.3 Asia Pacific 825 933 + 13.1 - 1.3 Africa 116 102 - 12.1 - 11.2 TOTAL 6,087 6,538 + 7.4
Slide 74: 1999 results by geographical area (FRF)
1999 results by geographical area In millions of FRF 1998 1999 99/98 99/98 % % ex. forex Sales France 9,986 10,680 + 6.9 + 6.9 Europe excluding France 11,978 12,715 + 6.2 + 6.3 Americas 11,792 12,706 + 7.7 + 5.3 Asia Pacific 5,412 6,119 + 13.1 - 1.3 Africa 764 665 - 12.1 - 11.2 TOTAL 39,932 42,885 +
Slide 75: Statement of changes in financial position
Statement of changes in financial position In millions of euros (€) 1998 1999 Net earnings 100% 551 610 Depreciation and amortization 558 648 Deffered income taxes 54 98 Change on contingencies - 10 - 42 Impact of equity in earnings 4 -6 Cash flow before capital gain chemicals 1,157 1,308 Capital ga
Slide 76: Statement of changes in financial position (FRF)
Statement of changes in financial position In millions of FRF 1998 1999 Net earnings 100% 3,614 3,998 Depreciation and amortization 3,660 4,251 Deffered income taxes 352 640 Change on contingencies -67 - 272 Impact of equity in earnings 27 - 34 Cash flow before capital gain chemicals 7,586 8,583 Cap
Slide 77: Capital expenditure by geographical area
Capital expenditure by geographical area 1998 consolidated 1999 consolidated In % of total Investment (Sales) Investment (Sales) France 13% (25%) 21% (25%) Europe (excluding France) 37% (30%) 35% (30%) Americas 39% (29%) 33% (30%) Asia Pacific 10% (14%) 10% (14%) Africa 1% (2%) 1% (1%) Note : 1999 i
Slide 78: 18 new large contracts put on stream in 1999
18 new large contracts put on stream in 1999 2nd half-year 1999 13 new plants Hol. GEP (H2/CO) Hung. Bordsochem (O2) Pol. Huta Katowice (O2) Fra. Lyondell (energy) Fra. Sollac (O2) U.S.A. Bayer (energy) 1st half-year 1999 U.S.A. Ingleside (O2) U.S.A. BASF (energy, O2I) 5 new plants Canada Dow (energ
Slide 79: 15 new large contracts put on stream in 2000
15 new large contracts put on stream in 2000 2nd half-year 2000 8 new plants Bulg. Union Minière (O2) Germ. Norddeutsche (O2) Ital. Limito (O2) Fra. BP Amoco (energy) Canada Shell (energy) Canada Shell (O2) Taiw. Chang Bin (O2) 1st half-year 2000 Sing. Exxon (O2) 7 new plants Swe. Boliden (O2) Belg.
Slide 80: Consolidated balance sheet
Consolidated balance sheet In millions of euros (€) LIABILITIES & ASSETS 1998 1999 STOCKHOLDERS' 1998 1999 EQUITY Net assets 5,552 6,771 Stockholder's equity 4,347 4,927 in which construction Minority interests 297 344 in progress and advance payments 820 937 Provisions 988 1,149 Goodwill (net) 580
Slide 81: Consolidated balance sheet (FRF)
Consolidated balance sheet In millions of FRF LIABILITIES & ASSETS 1998 1999 STOCKHOLDERS' 1998 1999 EQUITY Net assets 36,416 44,415 Stockholder's equity 28,514 32,318 in which work in progress and advance Minority interests 1,947 2,261 payments 5,376 6,145 Goodwill (net) 3,807 4,778 Provisions 6,48
Slide 82: Distributed dividends
Distributed dividends In % of net earnings A A regular regular growth growth of of the the distribution distribution in in line line with with net net earnings earnings 39,8% 39,4% 40% 37,9% 38,1% 35,4% 30% 20% 10% 0% 1995 1996 1997 1998 1999 82
Slide 83: Net debt ratio
Net debt ratio Net debt / (equity + minority interests) In % 100% 90% 80% 70% 60% 50% 46.1% 40% 36.1% 30% 28.2% 21.0% 20% 14.5% 10% 0% 1995 1996 1997 1998 1999 83
Slide 84: ROE
ROE 14% 12,4% 12,1% 12,1% 11,8% 11.9% 12% 10% 8% 6% 4% 2% 0% 1995 1996 1997 1998 1999 84
Slide 85: ROCE
ROCE 12% 11.5% 11.0% 10.5% 10.1% 10% 9.6% 8% 6% Construction in progress (in millions of euros) 4% 1996 1997 1998 1999 2% 600 725 820 937 0% 1995 1996 1997 1998 1999 Note: without construction in progress 11.9% 11.9% 11.8% 11.4% 10.8% 85