Air Products And Chemicals, Inc. · NYSE:APD
Air Products And Chemicals — Q4 FY2009 Earnings Presentation
23 slides from Air Products And Chemicals's earnings presentation, Oct 21, 2009
Slide 1: Q4 FY'09 Earnings Conference Call
Q4 FY’09 Earnings g Conference Call October 21, 21 2009
Slide 2: Forward Looking Statement
Q4 FY’09 Earnings 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. These forward-looking statements are based on management management’ss re
Slide 3: FY2009 Economic Environment
Q4 FY’09 Earnings FY2009 Economic Environment Global Industrial Production MSI Silicon Processed 115 2500 2250 110 2000 105 1750 100 1500 1250 95 1000 90 750 85 500 1999Q1 1999Q3 2000Q1 2000Q3 2001Q1 2001Q3 2002Q1 2002Q3 2003Q1 2003Q3 2004Q1 2004Q3 2005Q1 2005Q3 2006Q1 2006Q3 2007Q1 2007Q3 2008Q1 20
Slide 4: FY 2009 Summary
Q4 FY’09 Earnings FY 2009 Summary S Change vs. vs PY PY* (Continuing ops., ex. items) FY08 FY09 $∆ %∆ Sales ($B) $10.4 $8.3 ($2.2) (21%) - Underlying business (8%) - Energy/RM gy/ p pass thru ((7%) %) - Currency (6%) Operating p g Margin g (%) ( ) 14.6% 14.3% ((30bp) p) EPS ($/share) 5.05 4.06 (0.99
Slide 5: Q4 Financials
Q4 FY’09 Earnings Q4 Financials Fi i l Fav/(Unfav) vs. vs ($millions, Continuing Operations) Q4 FY09 Q4 FY08 Q3 FY09* Sales $2 129 $2,129 (22%) 8% - Underlying business (7%) 7% - Energy/RM pass pass-thru thru (12%) (1%) - Currency (3%) 2% Operating Income $328 (12%) 7% Operating Margin (%) 15.4% 170
Slide 6: Q4 EPS Analysis
Q4 FY’09 Earnings Q4 EPSS Analysis l i Q4 FY09 Q4 FY08 Change A As-reported t d diluted dil t d EPS $1 13 $1.13 $1 21 $1.21 - Discontinued Ops (loss) (0.01) (0.05) Continuing Operations EPS $1.14 $1 14 $1 26 ($0.12) $1.26 ($0 12) Volume ($0.41) Price / raw materials 0 02 ($0.21) 0.02 ($0 21) Cost 0.
Slide 7: Merchant Gases
Q4 FY’09 Earnings M Merchant h t Gases G Fav/(Unfav) vs. vs Q4 FY09 Q4 FY08 Q3 FY09 Sales Sa es $932 $93 ((15%) 5%) 6% - Volume (11%) 3% - Price 1% -% - Currency (5%) 3% Operating p g Income $166 ((16%)) ((2%)) Operating Margin 17.8% (10bp) (130bp) Lower L volumes l b butt sequential ti l improvem
Slide 8: Merchant Gases: Q4 Sales Analysis vs PY
Q4 FY’09 Earnings Merchant M h t Gases: G Q4 Sales Analysis vs PY North America Europe Asia Sales % change (16%) (14%) (10%) - Volume (15%) (9%) (3%) - Price (1%) 3% (2%) - Currency - (8%) (5%) Weak demand across most industries 8
Slide 9: Tonnage Gases
Q4 FY’09 Earnings T Tonnage Gases G Fav/(Unfav) /( ) vs. Q4 FY09 Q4 FY08 Q3FY09 Sales $640 (32%) 13% - Volume 4% 13% - Energy/RM pass thru (33%) (2%) - Currency (3%) 2% Operating Income $105 (22%) 20% Operating Margin 16.4% 210bp 90bp Volumes up sequentially on stronger chemical, refinery and stee
Slide 10: Electronics & Performance Materials
Q4 FY’09 Earnings El t Electronics i & Performance P f M Materials t i l Fav/(Unfav) vs. vs Q4 FY09 Q4 FY08 Q3 FY09 Sales $434 (22%) 6% - Volume (16%) 6% - Price (5%) (1%) - Currency (1%) 1% Operating Income $49 17% 26% Operating Margin 11.3% 370bp 180bp Electronics sales (27%) 3% Performance Ma
Slide 11: Equipment & Energy
Q4 FY’09 Earnings Equipment & Energy Fav/(Unfav) vs. Q4 FY09 Q4 FY08 Q3 FY09 Sales $123 (3%) 3% Operating Income $6 (63%) (56%) Sales Backlog $239 (40%) (6%) Lower sales volume Higher energy development spending 11
Slide 12: FY'10 Full Year Outlook
Q4 FY’09 Earnings FY’10 Full Year Outlook ● FY’10 overall… ll expecting ti a FY’09 Adjusted Adj t d Diluted Dil t d EPS $4.06 $4 06 gradual and modest recovery – Merchant loading – Tonnage new projects/loading ● WW manufacturing growth – E&E similar to last year – Globally up 1% to 2% – E&PM loadi
Slide 13: FQ1 2010 Outlook
Q4 FY’09 Earnings FQ1 2010 Outlook FQ4 2009 EPS $1 14 $1.14 } New plants on-stream Improving I i economy EPS Improved cost performance Seasonality Outage costs/lower volumes EPS Higher pension expense FQ1 2010 EPS $1 07 $1 15 $1.07-$1.15 13
Slide 14: Capital Spending Outlook
Q4 FY’09 Earnings C it l SSpending Capital di O Outlook tl k FY10 GROWTH CAPEX BY SEGMENT 2% 11% 18% Merchant FY10 Forecast Tonnage Total $1.3B-$1.5B Electronics & PM 69% Equipment & Energy FY10 GROWTH CAPEX BY REGION 3% 14% North America 38% Europe Asia 32% Middle East 13% LASA/Other 14
Slide 15: Appendix Slides
Q4 FY’09 Earnings Appendix Slides Q4 FY’09 Earnings
Slide 16: Appendix: FY2009 Sales Analysis
Q4 FY’09 Earnings Appendix: FY2009 Sales Analysis Change versus FY2008 T t lC Total Consolidated lid t d (21%) Comprised of: Base business growth (8%) – Volume (9%) – Price 1% Energy/RM pass thru (7%) Currency (6%) 16
Slide 17: Appendix: Q4 Sales Analysis
Q4 FY’09 Earnings Appendix: Q4 Sales Analysis Change versus Q4 FY08 Q3 FY09 T t lC Total Consolidated lid t d (22%) 8% Comprised of: Base business growth (7%) 7% – Volume (6%) 7% – Price (1%) -% % Energy/RM pass thru (12%) (1%) Currency (3%) 2% 17
Slide 18: Appendix: FY09 results and FY10 Guidance
Q4 FY’09 Earnings Appendix: FY09 results and FY10 Guidance ($ Milli Millions, exceptt per share h data) d t ) GAAP Measure Non GAAP Ajusts. Non GAAP Measure $ % $ % FY09 vs. FY08 - Total Co. FY09 FY08 Change Change FY09 (1) FY08 (2) FY09 FY08 Change Change Sales 8,256.2 10,414.5 (2,158.3) (21%) 8,25
Slide 19: Appendix: Q409 Results
Q4 FY’09 Earnings Appendix: Q409 Results ($ Millions, except per share data) Non GAAP GAAP Measure Adjusts. Non GAAP Measure % % Q Q409 vs. Q309 Q - Total Co. Q Q409 Q309 Q Change g Q309 (1) Q ( ) Q Q409 Q Q309 Change g Sales 2,129.3 1,976.2 8% 2,129.3 1,976.2 8% Operating Income 328.0 143.8 128% 16
Slide 20: Appendix: Operating Margins
Q4 FY’09 Earnings Appendix: A di Operating Margins ($ Millions) First Half FY09 Second Half FY09 6 months 6 months Second Half FY09 vs. GAAP M Measure Q109 Q209 t d to date t Q309 Q409 t d to date t Fi t Half First H lf FY09 Sales 2,195.3 1,955.4 4,150.7 1,976.2 2,129.3 4,105.5 Operating Income 114.
Slide 21: Appendix: ROCE
Q4 FY’09 Earnings Appendix: ROCE $ Millions Quarter Ended Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Numerator Operating Income Reported 313.6 360.0 380.4 380.4 348.6 393.7 373.1 114.1 260.4 143.8 328.0 Equity Affiliate Income 27.5 29.5 30.1 25.3 42.4 46.5 30.8 24.5 27.0 28.5 32.2 E
Slide 22: Appendix: ROCE Tax Rate
Q4 FY’09 Earnings Appendix: A di ROCE Tax Rate Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Reported Income from Cont. Ops. Bef. Tax and Min. Int 303.9 345.4 368.4 364.9 352.1 400.7 361.1 102.1 257.4 144.8 332.3 Minority Interest (4.4) (5.1) (6.2) (6.1) (4.5) (7.6) (4.8) (5.0) (1.6) (4.8)
Slide 23: Thank you
Thank you www.airproducts.com p
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