Air Products And Chemicals, Inc. · NYSE:APD
Air Products And Chemicals — Jefferies Global Industrial Conference 2011
15 slides from Air Products And Chemicals's conference presentation, August 2011
Slide 1: Strategy for Success
Strategy for Success Innovation, Integration and Improvement John McGlade Chairman, President and CEO Jefferies Global Industrial Conference August 2011
Slide 2: Forward Looking Statement
Forward Looking Statement NOTE: This presentation contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including earnings guidance, projections and targets. These forward-looking statements are based on management's reasonab
Slide 3: Air Products At a Glance
Air Products At a Glance • $9B in revenues across diverse markets and geographies • Positioned for continued long-term value creation Food Healthcare 4% 7% Asia U.S. Energy 22% 39% 23% Metals 9% Other 9% Electronics Europe 15% 32% Manufacturing 14% Canada/L.A. Chemicals 7% 19%
Slide 4: Supply Modes: Stability and Profitable Growth
Air Products Supply Modes Stability and Profitable Growth Onsite/Pipeline Package Gases & Specialty Materials 27% 40% 12% 21% 15-20 year Contracts Short-Term Contracts Limited Volume Risk Differentiated Positions Energy Pass through Equipment & Onsite/Pipeline Liquid/Bulk Services Packaged Gases & S
Slide 5: Global Trends Drive Growth
Global Trends Drive Growth Increasing Environmental Emerging Digital Energy Demand Focus Markets Revolution • Refining • Refining • Metals • Semiconductor • Gasification • Glass • Chemicals • Display • Coatings & • Food Construction • Electronics
Slide 6: Advantage: Hydrogen Leadership
Air Products Advantage: Hydrogen Leadership 12 Major Hydrogen Pipelines Onsite H2 Market 10 8 BSCFD 6 • US Gulf Coast 4 • Southern California • Edmonton, Alberta, Canada 2 • Sarnia, Ontario, Canada 0 • Rotterdam, Netherlands 2001 2010 2020 #1 market share for over two decades
Slide 7: Advantage: Electronics Leadership
Air Products Advantage: Electronics Leadership #1 in Taiwan ROW #1 #1 in U.S. in Korea 300mm Fab Capacity Key customer and geographic positions
Slide 8: Advantage: Asia Merchant Leadership
Air Products Advantage: Asia Merchant Leadership Korea China India Taiwan #1 positions in high growth markets
Slide 9: Advantage: Profitable Joint Ventures in High Growth Regions
Air Products Advantage: Profitable Joint Ventures in High Growth Regions Mexico Italy South Africa India Thailand $2.3B revenue on 100% basis
Slide 10: Expanding Geographies
Expanding Geographies ASU: H2 : LaPorte, TX O2: Xingtai Steel Detroit, MI Middletown, OH Hebei, China Granite City, IL O2: PCEC H2: PetroChina Shaanxi, China Sichuan, China H2: ExxonMobil N2: N2: Samsung Rotterdam, Korea Austin, TX The Netherlands Taiwan O2: Arcelor Mittal Liquefiers: H2 : Gent, Bel
Slide 11: Outlook
Outlook FQ4 2011 EPS $1.48-$1.53 • Higher Merchant and Tonnage volumes • Lower Tonnage maintenance costs • Higher tax rate FY 2011 EPS $5.70-$5.75* • CapEx forecast ~$1.6B-$1.7B • Tax rate guidance unchanged, ~25%-26% *Non-GAAP, excludes $0.14 of acquisition costs
Slide 12: Cash Priorities Remain Consistent
Cash Priorities Remain Consistent • Invest in the best $2.00 return projects 29 years of dividend increase • Maintain A bond rating $1.50 • Dividend increase each year $1.00 • Share repurchase with excess cash $0.50 $0.00
Slide 13: Revenue Growth, Operating Margin, Return on Capital Targets
Revenue Operating Return on Growth Margin Capital 11%-13% per year 20% 15% From $9B From 16.5% From 12.5% in 2010 in 2010 in 2010 to to to $15B+ in 2015 20% in 2015 15% in 2015
Slide 14: $15+ Billion in Sales by 2015
2015 2015 by $15+ Billion in Sales 20% Operating Margin 15% Return on Capital Employed
Slide 15: Thank you... tell me more
Thank you... tell me more AIR PRODUCTS ZZ
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