Air Products And Chemicals, Inc. · NYSE:APD
Air Products And Chemicals — Q2 FY2010 Earnings Presentation
22 slides from Air Products And Chemicals's earnings presentation, Apr 22, 2010
Slide 1: Q2 FY'10 Earnings Conference Call
Q2 FY’10 Earnings Conference Call April 22,
Slide 2: Forward Looking Statement
Q2 FY’10 Earnings Forward Looking Statement This presentation contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including earnings guidance and comments regarding the Company’s proposed acquisition of Airgas, Inc. These f
Slide 3: Additional Information
Q2 FY’10 Earnings ADDITIONAL INFORMATION On February 11, 2010, Air Products Distribution, Inc., a wholly owned subsidiary of Air Products and Chemicals, Inc. ("Air Products"), commenced a cash tender offer for all the outstanding shares of common stock of Airgas, Inc. ("Airgas") not already owned by
Slide 4: Financial Performance
Q2 FY’10 Earnings FY04 thru FY08 H109 H209 H110 Sales ( CAGR| % chg vs PY ) 14% (16%) (25%) 7% Operating Margin 12.8% +1.8% 14.6% 13.2% 15.5% 16.0% Adj’d Cont Ops EPS ( CAGR| % chg vs PY ) 21% (24%) (16%) 28% ROCE (4 quarter trailing) 9.6% +3.4% 13.0% ROCE (instantaneous) 10% 11% 12% Financial Perfo
Slide 5: Financials
Q2 FY’10 Earnings Financials* ($millions, Continuing Operations) Fav/(Unfav) vs. FY10 Q2 FY09 Q1 FY10 *Non-GAAP. See appendix for reconciliation . Sales $2,249 15% 3% - Underlying business 9% 3% - Energy/RM pass-thru 2% 2% - Currency 4% (2%) Income $364 40% 6% Margin (%) 16.2% 290bp 30bp Net Income
Slide 6: Q2 EPS Analysis
Q2 FY10 Q2 FY09 Change As-reported diluted EPS $1.16 $0.97 - discontinued ops inc - 0.08 - acquisition-related exp (0.07) - Adjusted cont ops EPS $1.23 $0.89 $0.34 Volume $0.29 Price / raw materials (0.09) Cost 0.12 Currency 0.05 Equity affiliates income 0.02 Noncontrolling interests (0.02) Higher s
Slide 7: Merchant Gases
Q2 FY’10 Earnings Sales $922 6% (1%) - Volume 1% 1% - Price (1%) 1% - Currency 6% (3%) Income $178 14% (6%) Margin 19.3% 140bp (100bp) Merchant Gases FY10 Q2 FY09 Q1 FY10 Fav/(Unfav) vs. Volume improvement led by Asia Prices weaker on lower surcharges, LH2 (nat’l gas)
Slide 8: Merchant Gases: Sales Analysis vs PY
Q2 FY’10 Earnings Sales % change 2% 6% 24% - Volume 5% (2%) 22% - Price (3%) -% (4%) - Currency - 8% 6% Merchant Gases: Sales Analysis vs PY America North Europe Asia North America driven by LAR & LH2 Europe package gas volumes weak Asia strong recovery continues Note: The above excludes Latin Ameri
Slide 9: Tonnage Gases
Q2 FY’10 Earnings Sales $757 21% 8% - Volume 11% 1% - Energy/RM pass thru 6% 8% - Currency 4% (1%) Income $107 9% 7% Margin 14.2% (150bp) (20bp) Tonnage Gases FY10 Q2 FY09 Q1 FY10 Fav/(Unfav) vs. Improvement in chemical & steel markets Volumes up on new plant on-streams
Slide 10: Electronics & Performance Materials
Q2 FY’10 Earnings Electronics & Performance Materials FY10 Q2 FY09 Q1 FY10 Fav/(Unfav) vs. Electronics sales 28% 4% Performance Materials sales 45% 4% Sales $451 36% 4% - Volume 38% 5% - Price (4%) -% - Currency 2% (1%) Income $57 18% Margin 12.6% 140bp
Slide 11: Equipment & Energy
Q2 FY’10 Earnings Sales $119 (7%) 10% Income $18 12% 133% Sales Backlog $343 22% 5% Equipment & Energy FY10 Q2 FY09 Q1 FY10 Fav/(Unfav) vs. Improving business mix Favorable project performance Backlog increases on PNG LNG order
Slide 12: Outlook
Q2 FY’10 Earnings Outlook FY’10 EPS $1.25-$1.29 Improving economy, seasonality New plants on-stream Higher Electronics restructuring costs Higher Energy development spending/outages FY’10 EPS $4.90-$5.00 WW manufacturing growth up ~2% CapEx forecast unchanged, ~$1.3B-$1.5B Tax rate unchanged, about
Slide 13: Appendix Slides
Q2 FY’10 Earnings Appendix Slides Q2 FY’10 Earnings
Slide 14: Appendix: Q2 Sales Analysis
Q2 FY’10 Earnings Change versus Q2 FY09 Q1 FY10 Total Consolidated 15% 3% Comprised of: Base business growth 9% 3% – Volume 10% 3% – Price (1%) -% Energy/RM pass thru 2% 2% Currency 4% (2%) Appendix: Q2 Sales Analysis
Slide 15: Appendix: Q210 Results and FY10 Guidance
Q2 FY’10 Earnings Appendix: Q210 Results and FY10 Guidance ($ Millions, except per share data) Non GAAP Adjustment $ % $ % vs. Q209 - Total Co. Change Change (1) Change Change Sales 2,249.0 1,955.4 293.6 15% 2,249.0 1,955.4 293.6 15% Income 340.6 260.4 80.2 31% 23.4 364.0 260.4 103.6 40% Margin 15.1
Slide 16: Appendix: ROCE
Q2 FY’10 Earnings Appendix: ROCE $ Millions Quarter Ended Numerator Income Reported 348.6 393.7 373.1 114.1 260.4 143.8 328.0 345.0 340.6 Equity Affiliate Income 42.4 46.5 30.8 24.5 27.0 28.5 32.2 26.9 32.2 Earnings before tax as reported 391.0 440.2 403.9 138.6 287.4 172.3 360.2 371.9 372.8 Global
Slide 17: Appendix: ROCE
Q2 FY’10 Earnings Appendix: ROCE Tax Rate Reported Income from Cont. Ops. Bef. Tax 352.1 400.7 361.1 102.1 257.4 144.8 332.3 340.3 343.3 Noncontrolling Interest (4.5) (7.6) (4.8) (5.0) (1.6) (4.8) - (5.0) (6.4) Income from Cont. Ops. Before Tax, after Noncontrolling Interest 347.6 393.1 356.3 97.1 2
Slide 18: Non GAAP Appendix: Year over Year Deltas
Q2 FY’10 Earnings Non GAAP Appendix: Year over Year Deltas ($ Millions, except per share data) BP FY04 and FY08 - Total Co. FY04 FY08 FY04 (1) FY08 (2) FY04 FY08 CAGR Change Sales 6,163.2 10,414.5 6,163.2 10,414.5 14% Income 836.9 1,495.8 (49.0) 26.3 787.9 1,522.1 Margin 13.6% 14.4% 12.8% 14.6% 180b
Slide 19: Non GAAP Appendix: Half Year Deltas
Q2 FY’10 Earnings Non GAAP Appendix: Half Year Deltas ($ Millions, except per share data) months months months GAAP Measure to date to date to date Sales 2,195.3 1,955.4 4,150.7 1,976.2 2,129.3 4,105.5 2,173.5 2,249.0 4,422.5 Income 114.1 260.4 374.5 143.8 328.0 471.8 345.0 340.6 685.6 Margin 5.2% 1
Slide 20: Non GAAP Appendix: ROCE FY04 and FY08
Q2 FY’10 Earnings Non GAAP Appendix: ROCE FY04 and FY08 $ Millions Quarter Ended Numerator Income Reported 181.7 200.2 231.3 223.7 380.4 348.6 393.7 373.1 Equity Affiliate Income 17.8 19.2 19.8 21.8 25.3 42.4 46.5 30.8 Earnings before tax as reported 199.5 219.4 251.1 245.5 405.7 391.0 440.2 403.9 P
Slide 21: Non GAAP Appendix: ROCE Tax Rate FY04 and FY08
Q2 FY’10 Earnings Non GAAP Appendix: ROCE Tax Rate FY04 and FY08 Reported Income from Cont. Ops. Bef. Tax 169.0 187.6 221.8 217.6 364.9 352.1 400.7 361.1 Noncontrolling Interest (1.9) (4.1) (3.3) (2.5) (6.1) (4.5) (7.6) (4.8) Income from Cont. Ops. Before Tax, after Noncontrolling Interest 167.1 183
Slide 22: Thank you
Thank you www.airproducts.com
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