Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — L'Air Liquide Ord — FY 2021 Earnings Presentation
43 slides from Air Liquide Sa's earnings presentation, Feb 16, 2022
Slide 1: FY 2021 Results: Strong Results Across all Performance Criteria
FY 2021 Results Strong Results Across all Performance Criteria Benoît Potier, Chairman & Chief Executive Officer Jérôme Pelletan, Chief Financial Officer Paris, February 16, 2022 1 FY 2021 Results - February 16, 2022
Slide 2: Strong Financials, Achievements throughout Recovery, Major Steps in Energy Transition
01 Strong Financials Achievements throughout Recovery Major Steps in Energy Transition Benoît Potier, Chairman & Chief Executive Officer 2 THIS DOCUMENT IS PUBLIC FY 2021 Results - February 16, 2022
Slide 3: FY 2021 Key Highlights
FY 2021 Key Highlights ▪ Strong profitable growth in spite of record inflationary environment ▪ Delivery on growth, efficiency, pricing and signing ▪ Key achievements in Energy Transition ▪ Active projects signing and strong backlog 3 THIS DOCUMENT IS PUBLIC FY 2021 Results - February 16, 2022
Slide 4: Strong 2021 Profitable Growth in Spite of Inflationary Environment
Strong 2021 Profitable Growth in Spite of Inflationary Environment Spike in energy price European Natural Gas price - NL-TTF (€/MWh) x5 Sales growth +14% (1) comparable growth + 8 % + 6% vs. 2019 Group OIR margin(2) +70bps Inflation firming-up Recurring Net Profit excluding FX(3) +13% Cash Flow / Sales(4
Slide 5: Key Achievements in 2021
Key Achievements in 2021 Healthcare Sustainability 16 Sasol ASUs Innovation & Covid-19 objectives takeover and focused on decarbonization Energy Transition ~+50% -33% liquid medical O2 CO2 emissions in volumes(1) absolute value by 2035 Thanks to commitment of the Teams facing Covid-19 and spike in e
Slide 6: Major Steps in Energy Transition in 2021
Major Steps in Energy Transition in 2021 ASU* PPA* ELY* PPA* Cryocap SMR* H2 fund CCS* H2V CCS* Takeover 2020 2021 2022 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec mobility Incheon airport H2 ecosystem ELY* in EL H2 stations ELY* Becancour Sup H2 stations Alive ASU* ASUs* Takeover REN* RFQ* Amer
Slide 7: Steadfast Commitment to Shareholders over the Long Term
Steadfast Commitment to Shareholders over the Long Term Dividend(1) in € per share CAGR over 20 years +7.7% (3) €2.90 ✓ New dividend increase proposed in 2022(3) ▪ +5.5% increase ▪ 55% Payout Ratio Total Shareholder Return(2) ▪ +7.7% CAGR over 20 years ✓ Free shares attribution in +11.4% June 2022 C
Slide 8: 2021: Strong Results & Cash Flow
02 2021: Strong Results & Cash Flow Jérôme Pelletan, Chief Financial Officer 8 THIS DOCUMENT IS PUBLIC FY 2021 Results - February 16, 2022
Slide 9: Strong 2021 Comparable Sales Growth from Resilient Sales in 2020
Strong 2021 Comparable Sales Growth from Resilient Sales in 2020 Sales in €m FY 20 FY 21 FY 21/20 FY 21/20 Q4 21/20 As published Comparable Comparable Gas & Services 19,656 22,267 +13.3% +7.3% +6.7% Engineering & 250 387 +54.5% +55.4% +56.6% Construction Global Markets & 579 681 +17.5% +17.8% -3.3%
Slide 10: Reinvigorated End-Markets
Reinvigorated End-Markets Chemicals ✓ ▪ Strong Steel and Chemicals Steel ✓ ▪ Refining catching up Refining ✓ Integrated Circuit ✓✓ ▪ Continued dynamic demand from end consumers Metal Fab. ✓ Construction ✓ ▪ Growth in all end-markets vs. FY 2020 Automotive ✓ ▪ Soft Construction in the U.S. and Automoti
Slide 11: High 2021 Sales Growth in all Regions and Activities
High 2021 Sales Growth in all Regions and Activities Gas & Services comparable sales growth by BLs (1) Europe +5% +7 % Asia-Pacific +6 % +7% Americas +8 % Middle-East +8% Africa +13%(1) +7% Group comparable sales growth +8 % (1) excluding additional contribution from Sasol ASUs takeover accounted for
Slide 12: Q4 – Growth above +7% in Americas and Europe
Q4 – Growth above +7% in Americas and Europe Americas High contribution from all business lines ▪ High O2 volumes from Chemicals & Steel ● LI ▪ Improved H from Refining; customer turnarounds 2 FY 20: -3.7% FY 21: +7.6% ▪ Ramp-ups in the U.S. and Latin America FY 20: -3.7% Sales ▪ Strong pricing +7.0%
Slide 13: Q4 – Contrasted Asia, Solid AMEI
Q4 – Contrasted Asia, Solid AMEI Asia IM and EL driving growth FY 21: +6.4% ▪ Easing impact of DEC(1) in China ● LI ▪ Growth in Japan and Singapore FY 20: -0.1% H1 21: +8.7% Buoyant China +18% driven by volume & pricing ▪ Sales ● IM ▪ Improved activity in rest of Asia Q4 2021 ▪ Accelerated pricing +
Slide 14: Q4 – High Global Activity in LI, Buoyant EL
Q4 – High Global Activity in LI, Buoyant EL Large Industries Electronics +7% growth excluding one-off sale in Q4 20 Strong Carrier Gases and Advanced Materials Sales Sales FY 20: -0.1% FY 21: +5.5% Q4 2021 FY 20: +3.9% FY 21: +7.0% Q4 2021 €2,319m €555m Sasol ASUs (2) ● Strong underlying Steel and C
Slide 15: Q4 – Vigorous Growth in IM, Normalizing HC
Q4 – Vigorous Growth in IM, Normalizing HC Industrial Merchant Healthcare +7% of accelerated pricing Strong Home Healthcare driving growth, high Q4 20 Sales Sales FY 20: -6.3% FY 21: +8.4% Q4 2021 Q4 2021 FY 20: +8.5% FY 21: +7.2% €2,508m €950m ● Slight Medical O2 growth vs. high Q4 20, with lower ●
Slide 16: Significant OIR Margin Improvement
Significant OIR Margin Improvement FY 21/20 FY 21/20 In €m FY 20 FY 21 As published Comparable Revenue 20,485 23,335 +13.9% +8.2% Purchases (7,198) (9,389) +30.4% Personnel Expenses (4,240) (4,363) +2.9% Other net income and expenses (3,119) (3,250) +4.2% Operating profit before depreciation 5,928 6,3
Slide 17: Pricing, Efficiencies & Portfolio Management Delivering
Pricing, Efficiencies & Portfolio Management Delivering IM Pricing Efficiencies Portfolio Management in 2021 +7.0% 8 divestitures €430m Greece Algeria global activity France compressed air U.S. 3 small affiliates Japan cylinders dealers France cogeneration unit 2016 2017 2018 2019 2020 2021 21 acquisitio
Slide 18: +7% Pricing in IM, Quick and Efficient Response to Spike in Energy Cost
+7% Pricing in IM, Quick and Efficient Response to Spike in Energy Cost Pricing Actions Americas Bulk Europe ▪ Contractual indexations ▪ Proactive campaigns to address spike in energy cost Asia-Pacific Middle-East & Africa Cylinders Total ▪ Price campaigns to tackle Industrial Merchant cost increase Q
Slide 19: Strong Growth Leverage on Net Profit
Strong Growth Leverage on Net Profit FY 21/20 FY 21/20 In €m FY 20 FY 21 As published Excl. FX Revenue 20,485 23,335 +13.9% +15.5% Operating income recurring 3,790 4,160 +9.8% +8.2% Other non-recurring operating income & expenses (140) (150) comparable Operating income 3,650 4,010 Net financial costs
Slide 20: Very Strong Cash Flow Allocated to High Capex and Dividends
Very Strong Cash Flow Allocated to High Capex and Dividends Cash Flow on sales(3) <12,373> 24.5% <10,609> +5,292 <465> <10,448> <1,283> <274> Gearing 64.0% <3,388> Sasol Gearing Gearing ~€480m 55.8% 47.5% +279 (1) Incl. acquisitions, transactions with minority shareholders, net of divestitures (2) I
Slide 21: Sustained Cash Flow Growth over 20 years
Sustained Cash Flow Growth over 20 years CAGR over 20 years +6.1% Accelerating CAGR over last 5 years to +8.5% (1) Cash Flow before WCR (€m) Cash Flow before WCR / Sales (1) For 2021, Cash Flow from Operations before changes in WCR on Sales excluding energy passthrough impact 21 THIS DOCUMENT IS PUB
Slide 22: Active Projects Signing and Strong Backlog
Active Projects Signing and Strong Backlog Investment Opportunities (1) Investment Decisions (1) Investment Backlog (1) €3.6bn Financial Industrial Sasol ASUs Takeover High momentum in investment Sustained level of decisions in Q4 Strong and diversified Backlog opportunities ▪ Increased weight of pro
Slide 23: Significant 2021 SU and RU Contribution to Sales
Significant 2021 SU and RU Contribution to Sales Start-up/Ramp-up Start-up date of major projects Sales Contribution(1) 2021 2022 Q4 2021 €115m Q4 Q1 Q2 Q3 Q4 Split of FY 2021 €345m projects FY 2022 €410 Large Industries GM&T split relative to the size of projects (€m) - Electronics Guidance 435m (1)
Slide 24: Step-Up in ROCE Improvement, Well On-Track to Meet Objective
Step-Up in ROCE Improvement, Well On-Track to Meet Objective Recurring ROCE after tax (1) >10% 9.3% Objective of >10% ROCE by 2023-2024 Airgas acquisition (1) Recurring ROCE based on Recurring Net Profit 24 THIS DOCUMENT IS PUBLIC FY 2021 Results - February 16, 2022
Slide 25: Sustainability Objectives: Action Plans Deployed
Sustainability Objectives: Action Plans Deployed All ESG Sustainability Day 2021 ratings in March 2021 Reminder Early achievements 1st quartile CO2 Carbon Management Abatement of CO emissions well on-track 2 Water First set of objectives Care for patients people granted with ~1 m access to oxygen in
Slide 26: 2022 Guidance
2022 Guidance Assuming no significant economic disruption, Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates.(1) (1) Operating margin excluding energy passthrough impact. Recurring net profit excluding
Slide 27: Appendix
03 Appendix 27 THIS DOCUMENT IS PUBLIC FY 2021 Results - February 16, 2022
Slide 28: FY 2021 G&S Revenue Breakdown by Region
FY 2021 G&S Revenue Breakdown by Region Europe Americas Europe 37% 38% €8.3bn Asia-Pacific Americas Africa €4.8bn €8.4bn Middle-East €22,267m €0.7bn Gas & Services Revenue 5% 2% 11% 8% 39% 32% 29% 30% 19% 28% Africa Asia-Pacific 65% 4% Middle-East 35% 22% 40% 53% 3% Industrial Merchant Large Industrie
Slide 29: Maintained Strong Base Business, High SU/RU Contribution
Maintained Strong Base Business, High SU/RU Contribution Breakdown of G&S Sales Growth +12.6% +5.2% Base business 2019 2020 2021 Start-ups, Ramp-ups, Site takeovers Base business Significant M&A See definitions in appendix 29 THIS DOCUMENT IS PUBLIC FY 2021 Results - February 16, 2022
Slide 30: Q4 - Americas
Q4 - Americas Industrial Merchant Large Industries Healthcare Electronics ▪ Strong pricing +7.0% ▪ High O2 volumes from ▪ High U.S. Medical O2 for ▪ Very high E&I ▪ Positive gas volumes, Chemicals & Steel in U.S. proximity care & Covid-19 ▪ Solid Advanced Materials Hardgoods portfolio ▪ Improved H2
Slide 31: Q4 - Europe
Q4 - Europe Industrial Merchant Large Industries Healthcare ▪ Very solid Volumes ▪ Air gases fuelled by high Steel and ▪ Lower O2 volumes & ventilators sales ▪ Growth in all end-markets Chemicals related to Covid-19 vs. high Q4 20 ▪ Strong Eastern Europe ▪ Improving H2 underlying demand ▪ Strong act
Slide 32: Q4 - Asia-Pacific
Q4 - Asia-Pacific Industrial Merchant Large Industries Electronics ▪ +18% in China, mainly driven by ▪ Easing impact of DEC(2) in China ▪ >+10% growth in Carrier Gases: ○ Automotive, Fabrication, ▪ Solid air gases and cogen activity in Singapore, China Technology, Energy Singapore ▪ High Advanced Mat
Slide 33: High E&C and Biogas Activities in FY 2021
High E&C and Biogas Activities in FY 2021 Engineering & Construction Global Markets & Technologies FY 20 : -23.0% FY 21 : +55.4% €137m FY 20: +6.0% FY 21: +17.8% Sales €186m Sales FY 2021 FY 2021 €387m €681m Comparable sales growth Total Sales(1) Comparable sales growth in FY 21 +29% Strong momentum
Slide 34: Strong & Diversified Backlog at €3.2bn
Strong & Diversified Backlog at €3.2bn Decisions Start-ups €1.1bn Yearly Sales Backlog after full Ramp-ups See definitions in appendix 34 THIS DOCUMENT IS PUBLIC FY 2021 Results - February 16, 2022
Slide 35: Consolidated P&L
Consolidated P&L In €m FY 20 FY 21 Revenue 20,485 23,335 Operating costs (14,557) (17,002) Operating profit before depreciation 5,928 6,333 Depreciation and amortization (2,138) (2,173) Operating income recurring 3,790 4,160 Other non-recurring operating income & expenses (140) (150) Operating income
Slide 36: Consolidated Balance Sheet Simplified
Consolidated Balance Sheet Simplified ASSETS 31/12/2020 31/12/2021 EQUITY AND LIABILITIES 31/12/2020 31/12/2021 Goodwill 13,087 13,992 Shareholders' equity 18,543 21,462 Fixed assets 21,401 23,984 Minority interests 462 537 Other non-current assets * 1,123 1,216 Total equity 19,005 21,999 Total non-c
Slide 37: Cash Flow Statement
Cash Flow Statement In €m FY 20 FY 21 Funds provided by operations 4,932 5,292 Changes in Working Capital 364 377 Other cash items (90) (98) Net cash from operating activities 5,206 5,571 Purchases of PPE* and intangible assets (2,630) (2,917) Purchases of financial assets and the impact of changes i
Slide 38: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue in €m Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 €/USD +55 +30 (86) (126) (165) (169) (19) +74 €/JP¥ +11 +11 (11) (9) (14) (25) (10) (10) €/ARS (16) (23) (10) (26) (18) (14) (4) +6 €/BRL (11) (22) (25) (23) (23) (6) +1 +1 €/Rmb (2) (8) (17) (6) (8) +
Slide 39: Financing Structure as of December 31, 2021
Financing Structure as of December 31, 2021 Fixed / Variable rates Sources Maturity (gross debt) Private placements Commercial €m Fixed 9% paper 15,000 rate 2% 94% Bank debt > 5 years 10,000 10% Others(1) 1% Between 1 and 5,000 5 years < 1 year Bonds 0 Variable 78% Market debt rate 89% 6% (1) Others
Slide 40: 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 replaceme
Slide 41: Regular and Sustained performance
Regular and Sustained performance CAGR over 30 years(1) Revenue (in €m) EPS (2) (in €) +5.4% +6.7% Cashflow (in €m) Dividend (2) (in € per share) +5.9% +8.3% (1) Calculated according to prevailing accounting rules over 30 years (2) Adjusted for the 2-for-1 share split in 2007, for free shares attribu
Slide 42: Upcoming Events & Contacts
Upcoming Events & Contacts Upcoming events Capital Markets Day: March 22, 2022 2022 First Quarter Revenue: April 27, 2022 Investor Relations www.airliquide.com IRTeam@airliquide.com Follow us on Twitter @AirLiquideGroup Corporate Headquarters: Phone: +33 (0)1 40 62 51 50 75, Quai d’Orsay 75321 Paris
Slide 43: Disclaimer
Disclaimer This presentation may contain forward-looking statements (including objectives and trends) about Air Liquide’s financial situation, operating results, business activities and strategy. Although Air Liquide believes that the expectation reflected in such forward-looking statements are reason