Air Liquide SA · EURONEXT:AI
Air Liquide SA — Investor Day (July 2016)
25 slides from Air Liquide SA's investor day presentation, Jul 6, 2016
Slide 1: NEOS 2016-2020: A Customer-centric Transformation
NEOS 2016-2020 A Customer-centric Transformation Capital Markets Day, July 6th, 2016 - Summary
Slide 2: Air Liquide proven agility and strengths to build on opportunities
Air Liquide proven agility and strengths to build on opportunities China Sales €16.4bn Hydrogen Electronics Home Healthcare Large Industries Sales €3.0bn Rise of Out of High-tech Cleaner Developing Manufacturing Hospital devices fuels economies Mid Early Mid Early Mid Early Mid 1980s 1990s 1990s 200
Slide 3: Airgas acquisition: a Major Step Change
Airgas acquisition: a Major Step Change Sales Customer reach >€20bn +30% Customers x2 2 million Cylinders x2 22 million Larger base for value creation 3
Slide 4: A New Group
A New Group CUSTOMER DIGITAL INNOVATION 4
Slide 5: Value Creation Through Integrated Model
Value Creation Through Integrated Model Customers & Patients E&C* Large Industries Industrial Merchant Electronics Healthcare Innovation *Engineering & Construction 5
Slide 6: Both Growth and Resilience
Both Growth and Resilience Air Liquide Sales & OIR versus Worldwide Industrial Production over 10 Years 200 (Base 100 in 2005) 190 180 170 160 150 140 130 120 110 100 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Worlwide IP* Sales OIR *Source: coe-rexecode 6
Slide 7: Solid Foundations, Unique Differentiating Factors
Solid Foundations, Unique Differentiating Factors Large Industries Industrial Merchant with 50% more sales than #2 player #1 #1 High density: national market leader >€30bn sales ensured with 15 years for >70% of sales Take-or-Pay contracts #1 in e-commerce business Electronics Healthcare #1
Slide 8: Air Liquide Ambition
Air Liquide Ambition Lead our industry Deliver long-term performance Contribute to sustainability 8
Slide 9: Strategy: a Customer-centric Transformation
Strategy: a Customer-centric Transformation For Profitable Growth over the Long-term o Customer experience ■ Operational Excellence o Cost competitiveness ■ Selective Investments o Aligned with Air Liquide new business profile o Core ■ Open Innovation o Disruptive o Digital workplace ■ Network Organ
Slide 10: Majors trends
Majors trends 10
Slide 11: Major trends in a changing environment
Major trends in a changing environment Waste Evolving energy Urbanization Ageing management economics population EnergySharing and Rise of chronic War for talents Global diseases Changes in Environment warming economy Low inflation and low Health and Healthcare cost of money wellness TransitionSusta
Slide 12: Energy and Environment Transition
Energy and Environment Hydrogen for clean fuel Transition Oxygen for energy efficiencies Photovoltaics LNG technologies Biogas Hydrogen mobility Emissions control Recycling 12
Slide 13: Digitization
Digitization New ways of working Supply Chain e-Commerce Efficiencies e-Healthcare Smart & Innovative Operations (SIO) More Components Higher performance through Advanced Materials 13
Slide 14: Changes in Healthcare
Changes in Healthcare Medical gases for hospitals New geographies e-Healthcare Disinfectants & Home Healthcare antiseptics services for chronic diseases Offer for Pharmaceuticals Food preservation 14
Slide 15: Our new company program for 2016-2020
Our new company program for 2016-2020
Slide 16: Financial Objectives
Financial Objectives Efficiencies >€300m on average/year(2) + Airgas synergies >$300m +6% to +8% CAGR 2016-2020(1) >10% Maintain after 5-6 years “A” range rating (1) Including Airgas scope effect in 2017 contributing +2% to the CAGR (2) Over the 2017-2020 period 16
Slide 17: Key Success Factors for Growth and Resilience
Key Success Factors for Growth and Resilience IDEAL FOOTPRINT TO WIDE AND STRONG SOLID CONTRACT BALANCED ACTIVITIES CAPTURE GROWTH CUSTOMER BASE STRUCTURE Present in over Serving Sales 80 90% 55 % countries of industrial segments IP driven >50% annual sales >50%of AL growth 80% 45% secured as of Jan
Slide 18: Increased Customer Reach
Increased Customer Reach Field Sales 1 million customers Specialists in 75 countries Stores ≈ 850 + Telesales Experts > 500 1 million customers in 1 country (USA) Digital Platform * Bulk and Specialty Gases, Safety, Construction, Weld Process, Healthcare & Life Sciences 18
Slide 19: Efficiencies Boosted by Digitization of Operations
Efficiencies Boosted by Digitization of Operations Reinforced Higher Level of Predictive Big Data Real-time Remote Maintenance Analytics Optimizations Operation 1 billion of >85% of LI 14 Operation Control Target zero unplanned datapoints archived units connected Centers worlwide shutdowns every day
Slide 20: Corporate Sustainability Objectives
Corporate Sustainability Objectives For better health For better environment e.g. e.g. • Foster clean mobility • Help customers lower • Develop Healthcare GHG* emissions • Grow with reduced carbon intensity e.g. • Continue to improve Safety • Do business responsibly • Extend Air Liquide Foundation *
Slide 21: NEOS Strategy: a Customer-centric Transformation
NEOS Strategy: a Customer-centric Transformation Contribution to NEOS Customer Benefits o Operational Excellence Large Growth and cash o Customer competitiveness Industries Industrial Customer reach o Proximity & competitiveness o Customer experience Merchant o Patient-centric services Healthcare Ex
Slide 22: Relying on a New Balanced Mix
Relying on a New Balanced Mix 2020 Gas & Services Sales Geography Mix Activity Mix Large Asia-Pacific Middle-East & Africa Industries Europe Industrial Healthcare Merchant Americas Electronics 22
Slide 23: Leveraging on Digital
Leveraging on Digital New ways of working Managing assets and optimizing production & logistics Customer reach through e-commerce 23
Slide 24: Engaging the Whole Organization
Engaging the Whole Organization Network organization Hub - Hub 68,000 employees 1 base Hub Hub 20 clusters 24
Slide 25: NEOS 2016-2020: A Customer-centric Transformation
NEOS 2016-2020 A Customer-centric Transformation Capital Markets Day, July 6th, 2016 - Summary