Air Products And Chemicals, Inc. · NYSE:APD
Air Products And Chemicals — William Blair & Company 31st Annual Growth Stock Conference (June 2011)
23 slides from Air Products And Chemicals's conference presentation, Jun 15, 2011
Slide 1: Strategy for Success
Strategy for Success Innovation, Integration and Improvement John McGlade Chairman, President and CEO William Blair & Company 31st Annual Growth Stock Conference June 15, 2011
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 earnings guidance, projections and targets. These forward-looking statements are based on management's reasona
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% Asia U.S. 7% Energy 22% 39% Metals 23% 9% Other 9% Electronics Europe 15% 32% Manufacturing 14% Canada/L.A. Chemicals 7% 19%
Slide 4: Air Products Supply Modes
Air Products Supply Modes Stability and Profitable Growth Onsite/Pipeline Package Gases & Specialty Materials 40% 27% 12% 21% 15-20 year Contracts Short-Term Contracts Limited Volume Risk Differentiated Energy Pass through Positions Onsite/Pipeline Liquid/Bulk Equipment & Services Packaged Gases & S
Slide 5: A Strategy for Success
A Strategy for Success Winning in energy, environmental and emerging Markets Executing on innovation, integration and improvement Actions Delivering on revenue, margin and return Goals Generating Shareholder Value
Slide 6: Winning in energy, environmental and emerging markets
Winning inandenergy, environmental emerging Markets
Slide 7: Winning In the Markets Accelerating Growth
Winning In the Markets Accelerating Growth Air Products Advantage Global Trends Customers Productivity Quality Industrial Gas Fundamentals Applications Environmental Needs Efficiency
Slide 8: 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 9: Air Products 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 10: Air Products 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 11: Air Products Advantage: Asia Merchant Leadership
Air Products Advantage: Asia Merchant Leadership Korea China India Taiwan #1 positions in high growth markets
Slide 12: Air Products 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 13: Executing on innovation, integration and improvement
Executing on innovation, integration and improvement Actions
Slide 14: Innovation Built on Core Competencies
Innovation Built on Core Competencies Core Competencies Key Offerings Markets Combustion Gas Applications Refining Oxy-Fuel Burner Design Gasification Process Chemicals Gas Production & Delivery Technology Steel ASU, SMR, LNG, ITM Glass Food Separations Electronics Thin film precursors Fabrication S
Slide 15: Integrated Industrial Gas Model
Integrated Industrial Gas Model Packaged Gas Onsite Plant Liquifier Transfill • Full market access • Capital leverage • Lower supply chain costs • Global best practices Onsite Liquid Cylinder Customer Customer Customer Delivers higher growth and profitability
Slide 16: A Culture of Improvement Delivers Results
A Culture of Improvement Delivers Results • Investment in people, process and tools • Leadership accountability and individual responsibility • Data-driven Growth Productivity Pricing • New offerings • Product cost reduction • Pricing tools and • Capacity expansions • Distribution efficiency skills
Slide 17: Delivering on revenue, margin and return
Delivering on revenue, margin and return Goals
Slide 18: We Deliver on Our Commitments
We Deliver on Our Commitments ORONA Operating Margin 15 13 12.5% Goal 18 16 17% Goal 11 14 Percent Percent 9 12 7 10 5 8 2004 2007 2007 2011 See appendix for GAAP reconciliation
Slide 19: Revenue Growth, Operating Margin, Return on Capital Goals
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 $15B+ in 2015 20% in 2015 15% in 2015
Slide 20: Thank you... tell me more
Thank you... tell me more rool di:
Slide 21: Appendix
Appendix
Slide 22: Appendix – Non GAAP Results
Appendix – Non GAAP Results 1) FY06-FY10 Non GAAP Operating Income/Operating Margin ($m m ) FY06 FY07 FY08 FY09 FY10 Sales 7,885.0 9,148.2 10,414.5 8,256.2 9,026.0 GAAP Operating Income 1,042.0 1,375.6 1,495.8 846.3 1,389.0 Non GAAP Adjustments Global Cost Reduction Plan 72.1 13.7 298.2 Gain on Cont
Slide 23: Appendix – Non GAAP Results
Appendix – Non GAAP Results $ Millions ROCE Calculation $ Millions Tax Rate Calculation Quarter Ended Q409 Q110 Q210 Q310 Q410 Quarter Ended Q110 Q210 Q310 Q410 Numerator Reported Operating Income Reported 345.0 340.6 336.4 367.0 Income Before Taxes 340.3 343.3 338.9 371.5 Equity Affiliate Income 26