Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — L'Air Liquide Ord — Q1 2024 Earnings Presentation
26 slides from Air Liquide Sa's earnings presentation, Apr 24, 2024
Slide 1: Q1 2024 Activity
Q1 2024 Activity François Jackow, Chief Executive Officer Jérôme Pelletan, Chief Financial Officer Pascal Vinet, Executive Vice President Marcelo Fioranelli, Vice President Paris, April 24, 2024 1 Q1 2024 Activity - April 24, 2024
Slide 2: On Track
01 On Track François Jackow - Chief Executive Officer 2 THIS DOCUMENT IS PUBLIC Q1 2024 Activity - April 24, 2024
Slide 3: Q1 2024: On Track to Deliver
Q1 2024: On Track to Deliver Comparable IM Investment Efficiencies Cash Flow(1) Sales Growth Pricing Backlog + %2 4 + % + 22% 6 + % >€4bn (1) Cash Flow from Operations before changes in WCR, excluding FX impact and two exceptional items related to indemnities payment received in Q1 23 and Q1 24 3 THI
Slide 4: Taking Actions in an Uncertain Environment
Taking Actions in an Uncertain Environment Low Industrial Production China Euro zone 1. Building on a resilient model Q on Q growth 0% USA Source: Consensus Economics 2. Pricing & value creation Moderating inflation, still >+2% 3. Cost savings Q on Q growth USA Euro zone China 4. Structural efficiencie
Slide 5: High Investment Backlog Fueling Future Growth
High Investment Backlog Fueling Future Growth Strong Backlog 36% Electronics 45% Large Industries ■ Advanced Materials Normand’Hy production units Carrier Gases units Grandpuits Diversified with ■ €4.1bn ■ Q1 2024 Becancour Others ASU electrification > 80 projects Low-C CO2 recycling for HyCO ■ Well b
Slide 6: On Track to Deliver Key Milestones
On Track to Deliver Key Milestones 2024 guidance 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) 2025 objectives (1) Operating margin excluding energy passthrough impact. Recurring net profit exc
Slide 7: Resilience, Performance and Strong Execution
02 Resilience, Performance and Strong Execution Jérôme Pelletan - Chief Financial Officer 7 THIS DOCUMENT IS PUBLIC Q1 2024 Activity - April 24, 2024
Slide 8: Resilient Comparable Sales Growth
Resilient Comparable Sales Growth Sales in €m Q1 23 Q1 24 Q1 24/23 Q1 24/23 As published Comparable Gas & Services 6,893 6,358 -7.8% +2.0% Engineering & 87 92 +5.2% +6.5% Construction Global Markets & 194 200 +3.7% +4.7% Technologies Group Total 7,174 6,650 -7.3% +2.1% (1) Impacts on Q1 Group Sales:
Slide 9: Growth in Q1 from the Mix of Activities and Geographies
Growth in Q1 from the Mix of Activities and Geographies Q1 2024 Gas & Services comparable sales growth by Activities Europe +8% -2 % Asia-Pacific -1% +2% Americas +6 % Middle-East +1% Africa +11% -2% Group Comparable sales growth +2 % 9 THIS DOCUMENT IS PUBLIC Q1 2024 Activity - April 24, 2024
Slide 10: Q1 - Sustained Contribution from Americas, Pricing Shift in IM Europe
Q1 - Sustained Contribution from Americas, Pricing Shift in IM Europe Americas All activities contributing to growth ▪ One start-up, base volumes sequential improvement ● LI ▪ Customer turnarounds FY 23: +5.1% FY 24: ▪ Sustained +6.5% pricing Sales ● IM ▪ Resilient gas volumes Q1 2024 ▪ Growing Prox
Slide 11: Q1 – Contrasted Asia, Significant Growth in AMEI
Q1 – Contrasted Asia, Significant Growth in AMEI Asia Start-ups in LI & EL offsetting low activity ▪ Major start-up in China in March FY 23: +1.8% FY 24: ● LI ▪ Low activity, customer stoppage in China Sales ▪ Moderating +1.3% pricing Q1 2024 ● IM ▪ +4% volume growth in China excluding He €1,291m ▪ 1
Slide 12: Q1 – Continued Growth in IM, Resilient LI
Q1 – Continued Growth in IM, Resilient LI Industrial Merchant Large Industries Positive moderating pricing as expected Stable at low level Sales FY 24: Sales FY 23: +8.5% FY 23: -1.8% Q1 2024 Q1 2024 €2,975m €1,736m ● +3.7% pricing on top of +13% in Q1 23 ● Contribution from 2 Start-ups in China and
Slide 13: Q1 – Resilient Electronics, Continued Momentum in Healthcare
Q1 – Resilient Electronics, Continued Momentum in Healthcare Electronics Healthcare High comparison basis in Q1 23 Well balanced growth between HHC & Medical gases FY 24: Sales FY 24: Sales FY 23: +2.4% FY 23: +8.4% Q1 2024 Q1 2024 €596m €1,051m ● +6% Carrier Gases growth ● Home Healthcare growth fr
Slide 14: Major Start-Ups in Q1 Contributing to Sales
3 Major Start-Ups in Q1 Contributing to Sales Start-up date of major projects Sales Contribution(1) 2024 Q1 Q1 Q2 Q2 Q3 H2 Q4 Q1 2024 €53m Asia, Asia Asia Americas (1) Americas, Europe, Americas, Asia AMEI Europe, Asia Americas, Europe, FY 2024 €270 Asia Americas Outlook - 290m Large Industries Elec
Slide 15: Performance & Execution: Positive Signals for Margin in Q1
Performance & Execution: Positive Signals for Margin in Q1 IM Pricing Efficiencies Portfolio Management +3.7% 3 acquisitions +8.4% ■ 1 in USA +14.7% €112m ■ 2 in China €91m +3.6% Q1 23 2 divestitures €400m 2021 2022 2023 2024 Aerospace technology activity Q1 Cumulative IM pricing effect base 100 Year
Slide 16: Active Management of IM Pricing
Active Management of IM Pricing Positive global IM pricing Continued accretive margin Total contribution Industrial Merchant Value-added offers & service quality focus ina to customers as ent Airg Arg Americas +3% +3% Europe In Europe Pricing from Energy index* Asia-Pacific Middle-East & Africa Prici
Slide 17: Increased Efficiencies in Q1 2024
Increased Efficiencies in Q1 2024 Strong industrial efficiencies ■ > 800 projects ■ Production, supply chain & energy optimization €112m ■ Leveraging on data & digital +22% ■ Continuous improvement with >40k employees onboarded ■ Good practices replication award Procurement efficiencies ■ In a context of
Slide 18: High Investment Backlog
High Investment Backlog 12-months investment Investment Decisions (1) Investment Backlog (1) Opportunities (1) Financial Industrial Stable at high level: Diversity of projects: Well balanced: ▪ >40% in Energy Transition ▪ LI ASU electrification in China ▪ LI projects in all regions ■ ▪ EL projects in
Slide 19: Appendix
03 Appendix 19 THIS DOCUMENT IS PUBLIC Q1 2024 Activity - April 24, 2024
Slide 20: Q1 2024 - Beneficial Mix of Geographies and Activities
Q1 2024 - Beneficial Mix of Geographies and Activities Q1 2024 Gas & Services Revenue €6,358m 3% Global Markets & Technologies Engineering & Construction 1% 9% Electronics Europe Asia-Pacific 45% Industrial Americas Merchant €2.3bn Africa €1.3bn €2.6bn Middle-East 16% Healthcare €6,650m €0.3bn Q1 2024
Slide 21: Q1 2024 - Sales Contribution by Geographies and Activities
Q1 2024 - Sales Contribution by Geographies and Activities Americas Europe Asia 5% 2% 11% 32% IM 33% 33% 28% Q1 24 LI sales split HC 14% €2,550m €2,250m €1,291m EL 70% 4% 35% 33% +6.3% -1.6% -0.9% Q1 24/23 Comparable Sales Growth 21 THIS DOCUMENT IS PUBLIC Q1 2024 Activity - April 24, 2024
Slide 22: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue in €m Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 €/ARS (40) (62) (97) (182) (153) €/Rmb (18) (51) (83) (42) (36) €/USD +102 (50) (177) (121) (27) €/JP¥ (20) (17) (26) (21) (27) €/TRY (5) (13) (9) (7) (11) €/ZAR (14) (31) (29) (14) (10) €/SGD +11 +1 (9) (5) (3) Others
Slide 23: 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 24: Regular and Sustained performance
Regular and Sustained performance CAGR over 30 years(1) Revenue (in €m) EPS (2) (in €) +6.1% +7.2% Cash Flow (in €m) Dividend Per Share(2) (in €) +7.2% +8.7% (1) Calculated according to prevailing accounting rules over 30 years (2) Based on current year results and proposed for payment the following
Slide 25: For further information, please contact:
For further information, please contact: Upcoming events Annual General Meeting: April 30, 2024 First Half 2024 Results: July 26, 2024 Investor Relations www.airliquide.com IRTeam@airliquide.com Follow us Linkedin Corporate Headquarters: 75, Quai d’Orsay 75321 Paris Cedex 07 Tel : +33 (0)1 40 62 55
Slide 26: 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