Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — L'Air Liquide Ord — H1 2022 Earnings Presentation
41 slides from Air Liquide Sa's earnings presentation, Jul 28, 2022
Slide 1: H1 2022 Results: Strong performance in a challenging environment
H1 2022 Results Strong performance in a challenging environment Growth and resilience François Jackow, Chief Executive Officer Jérôme Pelletan, Group Chief Financial Officer Mike Graff, Executive Vice President Pascal Vinet, Senior Vice President Paris, July 28, 2022 1 H1 2022 Results - July 28, 2022
Slide 2: Growth and Resilience: Concrete Progress in Energy Transition
01 Growth and Resilience Concrete Progress in Energy Transition François Jackow - Chief Executive Officer 2 THIS DOCUMENT IS PUBLIC H1 2022 Results - July 28, 2022
Slide 3: Delivering a Very Strong Performance in H1 2022
Delivering a Very Strong Performance in H1 2022 Comparable Group Recurring Cash Flow/ Backlog Growth OIR margin(1) Net Profit(2) Sales(3) + %8 + 50 + 20% >23% € 3.0 bps bn H1 2022 figures (1) Operating Income Recurring on Sales excluding energy pass through impact (3) Cash Flow from Operations before
Slide 4: While Facing a Very Challenging Environment
While Facing a Very Challenging Environment >€1.8bn >€750m Spike in energy price additional En. impact Accelerating inflation of additional costs ytd ytd(2) European Natural Gas price - NL-TTF (€/MWh) (1) x6 2019 2020 2021 2022 Source Consensus Forecasts ■ Covid-19 lockdowns in China ■ Supply chain d
Slide 5: Successful Launch of Financial Performance, Decarbonizing the Planet
Successful Launch of Financial Performance Decarbonizing the New Markets Acting for All Planet through Innovation ■ Investments in Electronics ■ Continued engagement in the fight against covid-19 ■ Value-Based Healthcare ■ SBTi* validation of Group CO2 emissions trajectory *SBTi: Science Based Target
Slide 6: Concrete Progress in Energy Transition during H1 2022
Concrete Progress in Energy Transition during H1 2022 Transport & storage Shipping JV Carbon Capture Kairos@C K6 - Cement plant Lime plant Low-Carbon H2 for Chemicals Manufacturing JV ELYgator Electrolysis Normand’Hy 200 MW ELY* 200 MW ELY* Infrastructure for Infrastructure JV with & fleet JV Airport
Slide 7: A Reinforced Resilient Business Model
A Reinforced Resilient Business Model A strong Well positioned for Business Model resilient growth ■ Long-term contracts ■ Energy transition ■ Take or Pay clauses ■ Electronics ■ Fixed revenues from rentals ■ Healthcare Diversity Performance focused of business reach organization ■ Geographies ■ Pri
Slide 8: H1 2022 Key Takeaways
H1 2022 Key Takeaways Reinforced resilience ▪ Focus on performance ▪ Positioning on growth markets Growth ▪ Strong delivery of current business ▪ Concrete progress in Energy Transition and EL investments Confirmed 2022 guidance 8 THIS DOCUMENT IS PUBLIC H1 2022 Results - July 28, 2022
Slide 9: Strong H1 2022 Performance in a Challenging Environment
02 Strong H1 2022 Performance in a Challenging Environment Jérôme Pelletan - Chief Financial Officer 9 THIS DOCUMENT IS PUBLIC H1 2022 Results - July 28, 2022
Slide 10: Strong Sales Growth over H1 2022
Strong Sales Growth over H1 2022 Sales in €m H1 21 H1 22 H1 22/21 H1 22/21 Q2 22/21 As published Comparable Comparable Gas & Services 10,350 13,600 +31.4% +7.2% +7.3% Engineering & 169 221 +31.1% +29.0% +19.8% Construction Global Markets & 327 386 +17.9% +13.8% +9.8% Technologies Group Total 10,846
Slide 11: High Growth in Main Geographies, yet Mixed Activities
High Growth in Main Geographies, yet Mixed Activities Q2 2022 Gas & Services comparable sales growth by Activities Europe +13% +6 % Asia-Pacific +7 % +17% Americas +9.5% (1) Middle-East -3% Africa +2%(1) +2% Group Comparable sales growth +8 % (1) excluding additional contribution from Sasol ASUs take
Slide 12: Q2 – Strong Americas, High Europe yet Mixed
Q2 – Strong Americas, High Europe yet Mixed Americas IM pricing driving growth, high underlying LI ▪ High air gases volumes from Steel and Chemicals ● LI ▪ Strong H2 sales in Latam FY 21: +7.6% FY 22: ▪ Lower Cogen vs. high Q2 21, turnarounds in U.S. Sales ▪ Pricing >+13% Q2 2022 ● IM ▪ Volume growt
Slide 13: Q2 – EL Driving Strong Growth in Asia, Solid AMEI
Q2 – EL Driving Strong Growth in Asia, Solid AMEI Asia Buoyant EL, accelerating IM pricing over the region ▪ Soft China from lockdowns, sequential improvement FY 21: +6.4% FY 22: ● LI ▪ Low rest of Asia Sales ▪ Pricing +7% Q2 2022 ● IM ▪ Volumes in China resistant to covid-19 lockdowns €1,406m ▪ Imp
Slide 14: Q2 – Strong Momentum in IM, Contrasted LI
Q2 – Strong Momentum in IM, Contrasted LI Industrial Merchant Large Industries Record high pricing, resilient volumes Solid Americas offset by low Europe and soft Asia Sales Sales FY 22: FY 21: +8.4% Q2 2022 Q2 2022 FY 21: +5.5% FY 22: €2,872m €2,527m Sasol ASUs (1) ● Accelerating +14.4% pricing, su
Slide 15: Q2 – Buoyant EL, High Comparison Basis in HC
Q2 – Buoyant EL, High Comparison Basis in HC Electronics Healthcare Strong momentum in all segments Dynamic Home Healthcare FY 22: Sales Sales Q2 2022 Q2 2022 FY 21: +7.0% €641m FY 21: +7.2% FY 22: €970m ● Normalizing Medical O2 volumes after covid-19, strong ● >+17% growth in Carrier Gases, ESM(1)
Slide 16: Significant OIR Margin Improvement Despite Inflation
Significant OIR Margin Improvement Despite Inflation H1 22/21 H1 22/21 In €m H1 21 H1 22 As published Comparable Revenue 10,846 14,207 +31.0% +7.7% Purchases (4,079) (6,516) +59.8% Personnel Expenses (2,129) (2,380) +11.8% Other net income and expenses (1,641) (1,836) +11.9% Operating profit before dep
Slide 17: Focus on Performance
Focus on Performance IM Pricing Efficiencies Portfolio Management +14.4% 3 divestitures €167m Middle-East Mexico 2016 2017 2018 2019 2020 2021 2022 H1 2022 8 acquisitions China ▪ Record high pricing in all regions ▪ Higher industrial efficiencies ▪ Slightly positive helium pricing ▪ Negative impact of i
Slide 18: Accelerating IM Pricing, Effective Response to Spike in Energy Cost
Accelerating IM Pricing, Effective Response to Spike in Energy Cost Pricing Actions Americas Bulk ▪ Contractual indexations Europe ▪ Strengthened price management to address high energy price and Asia-Pacific inflation Middle-East & Africa Cylinders Total +14.4% ▪ Continued price campaigns Industrial
Slide 19: Strong Leverage on Recurring Net Profit
Strong Leverage on Recurring Net Profit H1 22/21 H1 22/21 In €m H1 21 H1 22 As published Excl. FX Revenue 10,846 14,207 +31.0% +25.2% Operating income recurring 1,948 2,286 +17.4% +8.4% Other non-recurring operating income & expenses (40) (270) excluding energy Operating income 1,908 2,016 pass-throu
Slide 20: Very Solid Cash Flow
Very Solid Cash Flow Cash Flow on sales(4) <12,013> 23.5% <512> <12,010> <1,604> <140> <10,448> +2,907 <1,547> (3) Gearing 56.1% <666> Gearing Gearing(3) 47.5% 46.0% (1) Including acquisitions, transactions with minority shareholders, net of divestitures (2) Including treasury shares and capital inc
Slide 21: Continued Momentum in Business Activity and Signing
Continued Momentum in Business Activity and Signing Investment Opportunities (1) Investment Decisions (1) Investment Backlog (1) (2) €1.4bn Financial Industrial Sasol ASUs Takeover High level of investment Active projects signing in Q2: Sustained strong Backlog: opportunities: ▪ 1 project in China i
Slide 22: Significant SU and RU Contribution to Sales
Significant SU and RU Contribution to Sales Start-up/Ramp-up Start-up date of major projects Sales Contribution(1) 2022 Q1 Q2 Q3 Q4 H1 2022 €213m Split of projects €410 FY 2022 - guidance 435m Large Industries Electronics GM&T Split relative to the size of projects (€m) (1) Including the additional c
Slide 23: ROCE Well On-Track to Meet Objective
ROCE Well On-Track to Meet Objective Recurring ROCE after tax (1) >10% 9.7% Objective of >10% ROCE by 2023 Airgas acquisition (1) Recurring ROCE based on Recurring Net Profit 23 THIS DOCUMENT IS PUBLIC H1 2022 Results - July 28, 2022
Slide 24: Confirmed 2022 Guidance
Confirmed 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 e
Slide 25: Appendix
03 Appendix 25 THIS DOCUMENT IS PUBLIC H1 2022 Results - July 28, 2022
Slide 26: H1 2022 G&S Revenue Breakdown by Region
H1 2022 G&S Revenue Breakdown by Region Europe Americas Europe 40% 37% €5.4bn Asia-Pacific Americas Africa €2.7bn €5.0bn Middle-East €13,600m €0.4bn Gas & Services Revenue 5% 24% 2% 10% 6% 34% 32% 27% 20% 26% Africa Middle-East Asia-Pacific 65% 3% 20% 48% 60% 38% 3% Industrial Merchant Large Industrie
Slide 27: Maintained Strong Base Business, Significant SU/RU Contribution
Maintained Strong Base Business, Significant SU/RU Contribution Breakdown of G&S Sales Growth +12.6% +5.6% Base business 2019 2020 2021 2022 Start-ups, Ramp-ups, Site takeovers Base business Significant M&A See definitions in appendix 27 THIS DOCUMENT IS PUBLIC H1 2022 Results - July 28, 2022
Slide 28: Q2 - Americas
Q2 - Americas Industrial Merchant Large Industries Healthcare Electronics ▪ Strong pricing +13.4% ▪ High air gases volumes from ▪ Lower O2 volumes for ▪ Ramp-ups in Carrier Gases ▪ Volume growth in Bulk, Steel and start-ups in covid-19 ▪ Very high Specialty on-site and Hardgoods, Chemicals in U.S. ▪
Slide 29: Q2 - Europe
Q2 - Europe Industrial Merchant Large Industries Healthcare ▪ +22.3% record pricing to address Energy ▪ Lower demand overall ▪ Lower O2 volumes related to covid-19 price increase ▪ Customer turnarounds ▪ Strong momentum in HHC, driven by ▪ Volumes slightly positive, resisting in ▪ Lower H2 volumes f
Slide 30: Q2 - Asia-Pacific
Q2 - Asia-Pacific Industrial Merchant Large Industries Electronics ▪ Accelerated pricing +6.9% over the ▪ Soft China impacted by lockdowns ▪ >+17% growth in Carrier Gases, ESM(2) region, notably in China, Japan, ▪ Lower air gases in Japan and and E&I Australia and Singapore Singapore ▪ High pricing i
Slide 31: Q2 - High Growth in E&C, Strong GM&T Driven by Biogas
Q2 - High Growth in E&C, Strong GM&T Driven by Biogas Engineering & Construction Global Markets & Technologies €108m Sales €189m Sales Q2 2022 Q2 2022 €113m €197m Comparable sales growth Total Sales(1) Comparable sales growth in Q2 22 +24% Strong order intake, Solid order intake €262m +2% momentum i
Slide 32: Sustained Strong Backlog at €3.0bn despite Start-Ups
Sustained Strong Backlog at €3.0bn despite Start-Ups Decisions Start-ups (1) €1.1bn Yearly Sales Backlog after full Ramp-ups See definitions in appendix (1) Russian projects have been removed from H1 2022 Backlog 32 THIS DOCUMENT IS PUBLIC H1 2022 Results - July 28, 2022
Slide 33: Consolidated P&L
Consolidated P&L In €m H1 21 H1 22 Revenue 10,846 14,207 Operating costs (7,849) (10,732) Operating profit before depreciation 2,997 3,475 Depreciation and amortization (1,049) (1,189) Operating income recurring 1,948 2,286 Other non-recurring operating income & expenses (40) (270) Operating income 1
Slide 34: Consolidated Balance Sheet Simplified
Consolidated Balance Sheet Simplified ASSETS 31/12/2021 30/06/2022 EQUITY AND LIABILITIES 31/12/2021 30/06/2022 Goodwill 13,992 14,864 Shareholders' equity 21,462 23,001 Fixed assets 23,984 25,816 Minority interests 537 893 Other non-current assets * 1,216 1,340 Total equity 21,999 23,894 Total non-c
Slide 35: Cash Flow Statement
Cash Flow Statement In €m H1 21 H1 22 Funds provided by operations 2,483 2,907 Changes in Working Capital (267) (634) Other cash items (26) (32) Net cash from operating activities 2,190 2,241 Purchases of PPE* and intangible assets (1,439) (1,574) Purchases of financial assets and the impact of chang
Slide 36: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue in €m Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 €/USD (165) (169) (19) +74 +141 +271 €/JP¥ (14) (25) (10) (10) (5) (10) €/SGD (7) (5) +1 +5 +10 +18 €/BRL (23) (6) +1 +1 +9 +16 €/Rmb (8) +1 +29 +40 +52 +59 €/CAN (5) +5 +8 +13 +13 +17 €/TRY (4) (4) (3) (5) (13) (
Slide 37: Financing Structure as of June 30, 2022
Financing Structure as of June 30, 2022 Fixed / Variable rates Sources Maturity (gross debt) Private placements Commercial paper (2) 9% €m Fixed 12% 15,000 rate (2) 84% Bank debt > 5 years 10% 10,000 Others(1) 1% Between 1 and 5,000 5 years < 1 year Bonds 0 Variable 68% Market debt rate 89% 16% (1)
Slide 38: 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 39: Regular and Sustained performance
Regular and Sustained performance CAGR over 30 years(1) Revenue (in €m) EPS (2) (in €) +5.4% +6.7% Cash Flow (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 share attrib
Slide 40: For further information, please contact
For further information, please contact: Upcoming events 2022 Third Quarter Revenue: October 25, 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 Cedex 07 Communicat
Slide 41: 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