Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — L'Air Liquide Ord — FY 2022 Earnings Presentation
42 slides from Air Liquide Sa's earnings presentation, Feb 16, 2023
Slide 1: FY 2022 Results
FY 2022 Results Strong performance in a challenging environment Active signing to prepare future growth François Jackow, Chief Executive Officer Jérôme Pelletan, Chief Financial Officer Mike Graff, Executive Vice President Pascal Vinet, Senior Vice President Paris, February 16, 2023 1 FY 2022 Results -
Slide 2: Introduction
01 Introduction François Jackow - Chief Executive Officer 2 THIS DOCUMENT IS PUBLIC FY 2022 Results - February 16, 2023
Slide 3: FY 2022 Key Takeaways
FY 2022 Key Takeaways ▪ Strong performance in an unprecedented environment ▪ Successfully deploying ADVANCE, reinforcing resilience of business model ▪ Well positioned in Energy Transition ▪ On-track with ambitious ESG roadmap 3 THIS DOCUMENT IS PUBLIC FY 2022 Results - February 16, 2023
Slide 4: Strong 2022 Performance in a Very Challenging Environment
Strong 2022 Performance in a Very Challenging Environment OIR Recurring Recurring Cash Flow/ Comparable Sales Growth margin(1) Net Profit(2) ROCE(3) Sales(4) excl. FX + %7 + 70 + 17% 10.3% + 110 bps bps ■ Conflict in Ukraine ■ Spike in Energy price ■ High Inflation ■ Covid-19 in China (1) Operating Inc
Slide 5: Outperforming ADVANCE Trajectory
Outperforming ADVANCE Trajectory 2022 achievement 2025 Sales growth +7 % (1) Sales growth +5-6% CAGR(1) ROCE(2) > 10% CO2 emissions by 2023 and forward inflection CO2 around 2025 ROCE 10.3% emissions on track Thanks to highly engaged and skilled teams (1) Group comparable sales growth 2021-2025 CAGR
Slide 6: Active Signing, Confirming Future Growth
Active Signing, Confirming Future Growth Record level of Electronics Innovating project signing at the forefront for the future in awarded EU Funding €4bn decided in 2022 >€1bn of signed investments #1 ■ ■ for Energy Transition ■ Contributing to strong ■ Projects in Asia, U.S., Europe in internationa
Slide 7: Strong Momentum in Energy Transition: Success in Europe, US Next
Strong Momentum in Energy Transition: Success in Europe, US Next Business achievements IRA(3) ▪ Awarded subsidies in CCS(1), Electrolysis accelerating ▪ Oxy-combustion and biomethane projects opportunities Major flagship projects ▪ Adding low-C supply to 3 existing H2 pipeline networks ▪ #1 in US ind
Slide 8: Stable CO2 Emissions for Second Year in a Row
Stable CO2 Emissions for Second Year in a Row Deploying ADVANCE levers to meet CO2 trajectory External recognition ⅓ ⅓ Carbon Capture Rating agencies Asset Management ■ 2035 Usage / Storage emission reduction ▪ Assets selected for subsidies “Gold rating” ▪ ASUs electrification in China levers “A-” ▪
Slide 9: Leadership in ESG Beyond CO2
Leadership in ESG Beyond CO2 Wellbeing 42% 100% of employees under beyond the a common basis of care workplace 34% coverage by 2025 2021 2022 Care for having access to oxygen in low Safety 1.8m patients & middle income countries(1) people -11% LTA (2) in 2022 Committed to New governance One ambition
Slide 10: Delivering Value to Shareholders over the Long Term
Delivering Value to Shareholders over the Long Term Dividend(1) in € per share New dividend per share €2.95 proposed in 2023(2) 58% Payout ratio Free share attribution (3) Strong dividend increase +12% ▪ Increase of nominal(2) ▪ Free share attribution in 2022 vs 2022 Total Shareholder Return(4) +12%
Slide 11: Strong financial FY 2022 performance in a challenging environment
02 Strong financial FY 2022 performance in a challenging environment Jérôme Pelletan - Chief Financial Officer 11 THIS DOCUMENT IS PUBLIC FY 2022 Results - February 16, 2023
Slide 12: Strong Comparable Sales Growth
Strong Comparable Sales Growth Sales in €m FY 21 FY 22 FY 22/21 FY 22/21 Q4 22/21 As published Comparable Comparable Gas & Services 22,267 28,573 +28.3% +6.1% +3.5% Engineering & 387 474 +22.6% +20.6% +0.1% Construction Global Markets & 681 887 +30.3% +25.8% +40.6% Technologies Group Total 23,335 29
Slide 13: Strong Resilient Growth From Solid Mix
Strong Resilient Growth From Solid Mix FY 2022 Gas & Services comparable sales growth by Activities Europe +14% +2% Asia-Pacific +7 % +16% Americas +10% Middle-East -7% Africa +1 % +4% Group Comparable sales growth +7 % 13 THIS DOCUMENT IS PUBLIC FY 2022 Results - February 16, 2023
Slide 14: Q4 – Strong IM and HC in Americas and Europe
Q4 – Strong IM and HC in Americas and Europe Americas High pricing in IM and HC ▪ Robust H2 in Refining in U.S. ● LI ▪ Softer Chemicals and Steel FY 21: +7.6% FY 22: +10.2% ▪ Low Cogen Sales ▪ High pricing >+14% ● IM ▪ Positive volumes excluding helium Q4 2022 €2,727m ▪ Lower O2 for covid-19 ● HC ▪ S
Slide 15: Q4 – Electronics Driving Growth in Asia, Solid AMEI
Q4 – Electronics Driving Growth in Asia, Solid AMEI Asia Buoyant EL, strong IM pricing ▪ Slower growth in China, covid-19 in Dec. FY 21: +6.4% FY 22: +7.0% ● LI ▪ Low demand in rest of Asia, esp. Singapore Sales ▪ High pricing +7.5% across the region Q4 2022 ● IM ▪ Low activity in China (covid-19) €
Slide 16: Q4 – Strong Growth in IM, Low Demand in LI
Q4 – Strong Growth in IM, Low Demand in LI Industrial Merchant Large Industries Strong pricing, resilient volumes Softer Americas and Asia, low Europe Sales Sales FY 21: +8.4% FY 22: +14.2% FY 21: +5.5% FY 22: -6.6% Q4 2022 Q4 2022 €2,965m €2,473m ● +15% pricing continuing to address high inflation ●
Slide 17: Q4 – Buoyant Electronics, Very Robust Healthcare
Q4 – Buoyant Electronics, Very Robust Healthcare Electronics Healthcare Carrier gases and ESM leading growth drivers Robust Home Healthcare and Strong Specialty ingredients FY 21: +7.0% FY 22: +16.4% Sales FY 21: +7.2% FY 22: +3.6% Sales Q4 2022 Q4 2022 €639m €999m ● +18% growth in Carrier Gases dri
Slide 18: Above +70bps OIR Margin Improvement for 3 Years in a Row
Above +70bps OIR Margin Improvement for 3 Years in a Row FY 22/21 FY 22/21 In €m FY 21 FY 22 As published Comparable Revenue 23,335 29,934 +28.3% +7.0% Purchases (9,389) (13,813) +47.1% Personnel Expenses (4,363) (4,963) +13.8% Other net income and expenses (3,250) (3,830) +17.8% Operating profit bef
Slide 19: Performance Focused in an Inflationary Environment
Performance Focused in an Inflationary Environment IM Pricing Efficiencies Portfolio Management +15.4% 7 divestitures Middle-East, Mexico +7% €378m Sweden, France 20 acquisitions FY 2022 2018 2019 2020 2021 2022 China ▪ Continued strong pricing ▪ Strong focus on operational U.S., Netherlands, efficiencie
Slide 20: +15% IM Pricing for FY 22, Effectively Managing Energy Cost & Inflation
+15% IM Pricing for FY 22, Effectively Managing Energy Cost & Inflation Pricing Actions Americas +13.4% Bulk +23.6% ▪ Contractual indexations Europe ▪ Strengthened price management to address high Asia-Pacific +6.8% energy price and inflation Middle-East & Africa +6.4% Cylinders Total +14.7% Industrial
Slide 21: Strong Leverage on Recurring Net Profit
Strong Leverage on Recurring Net Profit FY 22/21 FY 22/21 In €m FY 21 FY 22 As published Excl. FX Revenue 23,335 29,934 +28.3% +22.5% Operating income recurring 4,160 4,862 +16.9% +7.2% Other non-recurring operating income & expenses (151) (571) excluding energy Operating income 4,010 4,291 pass-thro
Slide 22: Strong Cash Flow Generation Allocated to Dividends and >€3bn Capex
Strong Cash Flow Generation Allocated to Dividends and >€3bn Capex Cash Flow on sales(3) +110bps <10,609> <10,448> +6,255 <453> <10,261> <1,641> <283> <3,246> Gearing 55.8% Gearing Gearing 47.5% <445> 41.8% Net Debt Net Debt Cash Flow WCR + Other Net Dividends(2) Lease liabilities Currency & Net Deb
Slide 23: Strong Investment Momentum Aligned with ADVANCE
Strong Investment Momentum Aligned with ADVANCE Investment Opportunities (1) Investment Decisions (1) Investment Backlog (3) €3.6bn (4) Financial Industrial High level of 12-month opportunities: Record activity signing: Strong Backlog: ▪ >40% in Energy Transition driven by H2 ▪ Very high EL, mainly
Slide 24: Significant Number of Start-ups Expected in 2023
Significant Number of Start-ups Expected in 2023 Start-up/Ramp-up Start-up date of major projects Sales Contribution 2022 2023 FY 2022 (1) Q1 Q2 Q3 €293m Q4 H1 H2 Q4 Asia Asia, US Asia + Sasol + €128m Asia US, Europe US, Europe €300 Europe US US FY 2023 - Outlook 330m Large Industries Electronics GM&
Slide 25: Objective of >10% ROCE Achieved One Year Ahead
Objective of >10% ROCE Achieved One Year Ahead Recurring ROCE after tax (1) 10.3% 10.0% 9.0% 8.0% 7.0% Dec.15 Dec.16 Dec.17 Dec.18 Dec.19 Dec.20 Dec.21 Dec.22 Airgas acquisition (1) Recurring ROCE based on Recurring Net Profit 25 THIS DOCUMENT IS PUBLIC FY 2022 Results - February 16, 2023
Slide 26: 2023 Guidance
2023 Guidance Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates.(1) (1) Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant transactions that
Slide 27: Appendix
03 Appendix 27 THIS DOCUMENT IS PUBLIC FY 2022 Results - February 16, 2023
Slide 28: FY 2022 - Beneficial Mix of Geographies and Activities
FY 2022 - Beneficial Mix of Geographies and Activities 2022 Gas & Services Revenue €28,573m 3% Engineering & Global Markets 2% Construction & Technologies 9% Electronics Europe Asia-Pacific Large Industries 35% Americas €11.4bn Africa €5.6bn €10.7bn Middle-East €29,934m 13% Healthcare €0.9bn 2022 Grou
Slide 29: Main Components of Gas & Services Sales Growth
Main Components of Gas & Services Sales Growth +12.6% +4.7% Base business FY 2022 2019 2020 2021 2022 Start-ups, Ramp-ups, Site takeovers Base business Significant M&A See definitions in appendix 29 THIS DOCUMENT IS PUBLIC FY 2022 Results - February 16, 2023
Slide 30: Q4 Sales and FY 2022 OIR margin by Geographies
Q4 Sales and FY 2022 OIR margin by Geographies Americas Europe Asia 4% 2% 10% 25% IM 27% 28% 34% LI Q4 sales €2,727m €2,700m €1,388m 20% split HC 66% EL 46% 3% 35% +9.3% -2.6% +5.9% Q4 22/21 Comparable Sales Growth Growth as Comparable Growth as Comparable Growth as Comparable in €m FY 2022 FY 2022
Slide 31: FY 2022 - High E&C and GM&T
FY 2022- High E&C and GM&T Engineering & Construction Global Markets & Technologies FY 21 : +55.4% FY 22 : +20.6% FY 21: +17.8% FY 22: +25.8% Sales €189m Sales FY 2022 FY 2022 €474m €887m Comparable sales growth Total FY 22 Sales(1) Comparable sales growth +30.9% Solid order intake High order intake
Slide 32: Strong and Diversified Backlog at €3.5bn
Strong and Diversified Backlog at €3.5bn Decisions Start-ups (1) €1.3bn Yearly Sales Backlog after full Ramp-ups See definitions in appendix (1) Russian projects have been removed 32 THIS DOCUMENT IS PUBLIC FY 2022 Results - February 16, 2023
Slide 33: Consolidated P&L
Consolidated P&L In €m FY 21 FY 22 Revenue 23,335 29,934 Operating costs (17,002) (22,606) Operating profit before depreciation 6,333 7,328 Depreciation and amortization (2,173) (2,466) Operating income recurring 4,160 4,862 Other non-recurring operating income & expenses (151) (571) Operating income
Slide 34: Consolidated Balance Sheet Simplified
Consolidated Balance Sheet Simplified In €m ASSETS 31/12/2021 31/12/2022 EQUITY AND LIABILITIES 31/12/2021 31/12/2022 Goodwill 13,992 14,587 Shareholders' equity 21,462 23,736 Fixed assets 23,984 25,459 Minority interests 537 836 Other non-current assets * 1,216 1,234 Total equity 21,999 24,572 Total
Slide 35: Cash Flow Statement
Cash Flow Statement in €m FY 21 FY 22 Funds provided by operations 5,292 6,255 Changes in Working Capital 377 (397) Other cash items (98) (48) Net cash from operating activities 5,571 5,810 Purchases of PPE* and intangible assets (2,917) (3,273) Purchases of financial assets and the impact of changes
Slide 36: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue in €m Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 €/USD (165) (169) (19) +74 +141 +271 +373 +274 €/JP¥ (14) (25) (10) (10) (5) (10) (16) (23) €/SGD (7) (5) +1 +5 +10 +18 +24 +18 €/BRL (23) (6) +1 +1 +9 +16 +14 +14 €/Rmb (8) +1 +29 +40 +52 +59 +62 +6 €
Slide 37: Reconciliation: OIR Margin Excluding Energy Price Passthrough Impact
Reconciliation: OIR Margin Excluding Energy Price Passthrough Impact FY 22 Variation Natural gas Electricity FY 21 FY 22 excl. energy excl. energy impact(1) impact(1) impact impact Revenue Group 23,335 29,934 2,541 1,073 26,320 Gas & Services 22,267 28,573 2,541 1,073 24,959 Operating Income Recurri
Slide 38: Financing Structure as of December 31, 2022
Financing Structure as of December 31, 2022 Fixed / Variable rates Sources Maturity (gross debt) Private placements Commercial paper 6% €m Fixed 1% 12,000 rate 94% Bank debt > 5 years 11% 8,000 Others(1) 2% Between 1 and 4,000 5 years < 1 year Bonds 0 Variable 81% Market debt rate 88% 6% (1) Others:
Slide 39: 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 replaceme
Slide 40: Regular and Sustained performance
Regular and Sustained performance CAGR over 30 years(1) Revenue (in €m) EPS (2) (in €) +6.5% +6.8% Cash Flow (in €m) Dividend (2) (in € per share) +7.2% +8.4% (1) Calculated according to prevailing accounting rules over 30 years (2) Based on current year results and proposed for payment the followin
Slide 41: For further information, please contact:
For further information, please contact: Upcoming events 2023 First Quarter Revenue: April 27, 2023 Investor Relations www.airliquide.com IRTeam@airliquide.com Follow us on Twitter @AirLiquideGroup Corporate Headquarters: Phone: +33 (0)1 40 62 51 50 75, Quai d’Orsay 75321 Paris Cedex 07 Communicatio
Slide 42: 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