Air Liquide SA · EURONEXT:AI
Air Liquide SA — Q1 2018 Earnings Presentation
34 slides from Air Liquide SA's earnings presentation, Apr 25, 2018
Slide 1: Q1 2018 Activity: Group Sales Up +6%
Q1 2018 Activity Group Sales Up +6% Strong Momentum in All Activities Paris, 25 April 2018
Slide 2: 2018 Q1 Activity - Fabienne Lecorvaisier, CFO
2018 Q1 Activity Fabienne Lecorvaisier Executive Vice President & Chief Financial Officer 2 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 3: Highlights
Highlights Strong quarter in all business lines and geographies Group sales up +6% Very high base business Strong LI, thriving bidding activity and improving E&C Performance well on track Efficiencies and Synergies delivered Solid cash-flow 3 25 April 2018 Q1 2018 Activity The world le
Slide 4: Favorable Environment
Favorable Environment Increased Demand from End-markets IP Stabilizing Industrial Production Year on Year in % (3-month rolling average) Chemicals Refining Metals 4 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 5: FX Headwind in Q1 2018
FX Headwind in Q1 2018 Increased Negative FX Impact(1) -8.2% (2) -1.6% ~ -5% Estimated FY 2017 Q1 2018 FY 2018 Slightly Negative Energy Impact(1) +1.5% -0.3% ~ 0% Estimated FY 2017 Q1 2018 FY 2018 (2) Based on Bloomberg forward rates as of beginning of April (1) On Group sales (€1 = US$1.24) 5 25 Ap
Slide 6: Higher G&S Growth, Improving E&C and Strong GM&T
Higher G&S Growth, Improving E&C and Strong GM&T 6 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 7: Growth Across Major Geographies and Businesses
Growth Across Major Geographies and Businesses +11% GLOBAL MARKETS & +24% TECHNOLOGIES +7 % +4.5% LARGE INDUSTRIES +6 % INDUSTRIAL MERCHANT +4 % AMERICAS DEVELOPING ASIA ECONOMIES Comparable sales growth 7 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Indust
Slide 8: Very High Base Business
Very High Base Business G&S Quarterly Growth Analysis +14% +31% +29% Strongest base business since Q2 11 (1) Comparable growth based on 2016 adjusted sales 8 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 9: Group Sales, 6 Quarters of Accelerating Growth
Group Sales, 6 Quarters of Accelerating Growth Comparable Sales Growth +6.0% 6% +5.0% 5% 4% 3% +1.7% 2% +0.5% 1% 0% Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Group Gas & Services 9 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 10: Q1 - Robust Growth in North America and Europe
Q1- Robust Growth in North America and Europe AMERICAS EUROPE Q1 2018 Q1 2018 €1,901m €1,753m G&S Comparable Sales Growth Robust IM and LI growth in North America Solid growth in all activities • LI: high air gases in the U.S., ramp-ups in • LI: very high H2 volumes and strong cogen South America •
Slide 11: Q1 - Strong Asia, Major Start-up in South Africa
Q1- Strong Asia, Major Start-up in South Africa MIDDLE-EAST AS I A - P AC I F I C & AF R I C A Q1 2018 Q1 2018 €1,016m €161m G&S Comparable Sales Growth Strong momentum in all activities Very strong LI with major SU • LI: projects ramp-up in China, high volumes • Sasol start-up in South Africa • IM:
Slide 12: Q1 - Well-oriented Markets in IM, Increased Volumes in LI
Q1- Well-oriented Markets in IM, Increased Volumes in LI INDUSTRIAL L AR G E M E R C H AN T I N D U S TR I E S Q1 2018 Q1 2018 €2,208m €1,365m G&S Comparable Sales Growth Very robust growth despite negative working day High activity & a major start-up • >+15% growth in China • Very solid growth in a
Slide 13: Q1 - Solid HC and EL
Q1- Solid HC and EL H E AL T H C AR E E L E C TR O N I C S Q1 2018 Q1 2018 €850m €408m G&S Comparable Sales Growth Sustained growth, strategic acquisitions Strong momentum in Asia • Strong growth in Home Healthcare • Asia driving growth • Contribution from acquisitions in • Strong Carrier Gases Japa
Slide 14: Improving E&C, Very Strong GM&T
Improving E&C, Very Strong GM&T Sales and Order intake(1) – in €m E&C GM&T 200 200 (2) (2) +75% +24% 100 100 0 0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Sales Order intake Sales Order intake (1) Group and third-party order intake (2) Comparable growth 14 25 April 2018 Q1 2018 Act
Slide 15: Global Markets & Technologies (GM&T) High Growth
Global Markets & Technologies (GM&T) High Growth €372m Double 1,800 Employees 2017 digit Revenue growth Manage innovative activities and new market initiatives on a global basis 15 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 16: GM&T: Opening New Markets
GM&T: Opening New Markets Cryogenic Maritime Deep Tech Energy Transition Logistics Space & Biomethane Cryogenic Aerospace production transportation Extreme Clean Maritime cryogenics mobility usages 16 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry an
Slide 17: Q1 - Performance Well On Track
Q1 – Performance Well On Track Efficiencies Airgas Synergies Cash Flow(1) €79m US$22m 19.5% • Industrial efficiencies • Growth synergies • Gross Capex = €570m accounting for half accounting for 1/3 in Q1 • First Airgas efficiencies • US$237m cumulated synergies (1) Operating Cash Flow before change
Slide 18: All Indicators Improving, Higher Project Activity
All Indicators Improving, Higher Project Activity Investment Q1 2018 Investment Q1 2018 Opportunities(1) Decisions(1) Start-up/Ramp-up 12-month portfolio Sales Growth Contribution €2.3bn €0.6bn €67m • Increased bidding activity • Major long-term contracts • 3 start-ups • Medium-size projects and • E
Slide 19: Increased Backlog
Increased Backlog Investment Backlog(1) in €bn €2.3bn Decisions Start-ups €2.2bn €2.1bn €2.1bn ~€ 0.9bn Dec 2015 Dec 2016 Dec 2017 Decisions Start-ups March 2018 Yearly Sales Backlog(1) after full Ramp-ups (1) See definitions in appendix 19 25 April 2018 Q1 2018 Activity The world leader in gases, t
Slide 20: 2018 Outlook
2018 Outlook Group sales up +6% “Assuming a comparable Q1 environment, Air Liquide is 2018 2018 High base business confident in its ability to deliver Buoyant bidding activity net profit growth in 2018, calculated at constant Performance well on exchange rate and excluding track 2017 excepti
Slide 21: Q1 2018 Appendix
Q1 2018 Appendix 21 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 22: Q1 2018 G&S Revenue Breakdown by Region
Q1 2018 G&S Revenue Breakdown by Region EUROPE €1.8bn ASIA- AMERICAS PACIFIC €1.9bn €1.0bn €4,831m Industrial Merchant Large Industries Healthcare Electronics 22 28April 25 July 2018 2017 H1 2018 Q1 2017 Activity Results The world The worldleader leaderiningases, gases,technologies technologies and
Slide 23: Americas
Americas Q1 Gas & Services Sales: €1,901m INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE ELECTRONICS • High demand from end-markets • Air gases sales increase • Dynamic Latin America • Weak E&I • Solid cylinders and hardgoods in the U.S., • SU/RU in South America • Strong sleep apnea in low argon s
Slide 24: Europe
Europe Q1 Gas & Services Sales: €1,753m INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE • Activity improvement despite one • Increase in hydrogen volumes for • Steady growth with few bolt-on fewer working day refineries acquisitions • Progress in almost all markets • Dynamic cogen • Dynamic HHC, esp
Slide 25: Asia-Pacific
Asia-Pacific Q1 Gas & Services Sales: €1,016m INDUSTRIAL MERCHANT LARGE INDUSTRIES ELECTRONICS • Buoyant China (>+15%) • 3 ramps-ups in China including 1 • Dynamic Advanced materials in • Decreasing Japan with take-over, more than compensating Taiwan and South Korea high E&I sales in Q1 2017 the sal
Slide 26: Industrial Merchant Pricing
Industrial Merchant Pricing 26 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 27: Updated 2018 Start-Up Timeline
Updated 2018 Start-Up Timeline 2018 2017 Q1 Q2 Q3 Q4 Sasol OCI Chinese Pemex Electronics RSA U.S. Project Mexico Projects Asia Fujian Shenyuan China 2018 forecasted additional sales between €250 and €300 million Uncertainties about Fujian start-up date Increased bidding activity on new project
Slide 28: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue 28 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 29: Revenue Analysis by Quarter and by Business Line
Revenue Analysis by Quarter and by Business Line 29 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 30: Revenue Analysis by Quarter and by Geography
Revenue Analysis by Quarter and by Geography 30 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 31: G&S Revenue Growth by Quarter and by Impact
G&S Revenue Growth by Quarter and by Impact 2017 impacts compared to adjusted 2016 revenue, as if on January 1st 2016 Airgas had been fully consolidated. 31 25 April 2018 Q1 2018 Activity The world leader in gases, technologies and services for Industry and Health
Slide 32: 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 replac
Slide 33: Regular and Sustained Performance
Regular and Sustained Performance 21,000 Revenue (in €m) +6.0% EPS(1) (in €) +7.5% 18,000 C AG R C AG R 5.0 15,000 over 30 years (2) (2) over 30 years 4.0 12,000 3.0 9,000 2.0 6,000 1.0 3,000 0 0.0 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 1987 1989 1991 1993 19
Slide 34: For further information, please contact
For further information, please contact: Investor Relations Communication Aude Rodriguez + 33 (0)1 40 62 57 08 Anne Bardot + 33 (0)1 40 62 50 93 Louis Laffont + 33 (0)1 40 62 57 18 Annie Fournier + 33 (0)1 40 62 51 31 Ludmilla Binet + 33 (0)1 40 62 57 37 Jérôme Zaman + 33 (0)1 40 62 59 3