Air Liquide SA · EURONEXT:AI
Air Liquide SA — H1 2010 Earnings Presentation
41 slides from Air Liquide SA's earnings presentation, Aug 2, 2010
Slide 1: 2010 First half performance
2010 First half performance Solid progression in sales and profits Recovery in growth projects Benoît Potier, Chairman and CEO Pierre Dufour, Senior Executive Vice-President Jean-Pierre Duprieu, Senior Vice-President Fabienne Lecorvaisier, Chief Financial Officer August 2, 2010
Slide 2: First half 2010 program continues in a new environment
First half 2010 program continues in a new environment Solid performance in revenue and profits Operating margin improvement Recovery in volumes and new project signings Air Liquide, world leader in gases for industry, health and the environment H1 2010 Results 2
Slide 3: Growth and operational control
Growth and operational control Gas & Services sales Operating Cash flow In €bn In €m 5.7 1,266 6 5.3 1200 1,090 1,084 5.0 900 4 +9.5% / 09* +16.7% / 09 600 +4.0% / 08* +16.1% / 08 300 2 0 H1 08 H1 09 H1 10 H1 08 H1 09 H1 10 Net Capex Efficiencies In €m In €m 335 1000 878 812 788 300 230 750 200 > 20
Slide 4: Solid progression in sales and profits
Solid progression in sales and profits Fabienne Lecorvaisier, Chief Financial Officer
Slide 5: Growth compared to 2009 and 2008
Growth compared to 2009 and 2008* H1 2010 change vs H1 10/09 H1 09 H1 08 In €m change 2010 Comparable** Group revenue 6,516 +9.7% +6.3% stable Gas & Services revenue 5,695 +13.4% +9.5% +4.0% Operating income recurring 1,084 +22.0% As published Net profit 676 +13.3% +13.3% +12.4% (Group share) Net De
Slide 6: Performance above industry average
Performance above industry average H1 2010 Gas & Services sales: comparable(1) growth Peer average(2) vs H1 2009 +9.5% +10.6 % vs H1 2008 +4.0% - 2.8% Net income(3): base 100 in H1 2008 110 100 90 80 Air Liquide 70 Peer average (2) 60 H1 2008 H1 2009 H1 2010 (1) excl. forex and nat. gas (2) h1 2010
Slide 7: Confirmed recovery
Confirmed recovery Gas & Services monthly activity index, 2008 average base 100* 105 2008 average 100 95 2009 average 90 85 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- 09 09 09 09 09 09 09 09 09 09 09 09 10 10 10 10 10 10 * comparable revenue, adjusted f
Slide 8: Continued improvement in all regions
Continued improvement in all regions H1 Gas & Services Comparable growth H1 2010/09 Q1 2010/09 sales Strong recovery in steel Europe +4.4% Solid growth in Homecare €3,002m +3.8% Dynamic Eastern Europe Contract ramp-ups in South America and Americas +9.5% the US €1,347m +8.5% Industrial Merchant mome
Slide 9: Acceleration in emerging economies
Acceleration in emerging economies Mature economies Emerging economies Gas & services sales growth +6% H1 2010 / H1 2009 +30% Recovery Recovery + growth Growth Air Liquide, world leader in gases for industry, health and the environment H1 2010 Results 9
Slide 10: Progressive volume recovery
Progressive volume recovery Base 100, average 2008 Industrial Merchant Large Industries gas volumes bulk and cylinder volumes (O2) 110 130 Bulk 120 Hydrogen 100 110 90 100 Cylinders 90 Oxygen 80 80 70 70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 08 08 08 08 09 09 09 09 10 10 08 08
Slide 11: Continued improvement in all business lines
Continued improvement in all business lines Industrial Merchant: +4.6% in H1 Large Industries: +13.3% in H1 +7.6% 20% 8% +15.5% +13.7% +13.0% +3.4% 15% 3% +1.7% 10% -2% 5% +2.2% +1.0% -3.4% -3.5% -7% 0% -6.7% -7.7% -8.8% -5% -12% -10.5% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 H1 2010 2008 2009 200
Slide 12: Engineering & Construction: increased order intake
Engineering & Construction: increased order intake Third-party E&C sales E&C order intake In €m In €m 400 1500 323 1250 300 282 258 247 1000 208 203 200 185 750 500 100 800 250 420 350 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 2010 2008 2009 2009 2009 2009 2010 2010 H1 Year Sales in line with investment cy
Slide 13: Robust performance
Robust performance In €m H1 2009 H1 2010 Change Revenue 5,937 6,516 +9.7% Purchases (2,290) (2,425) Personnel expenses (1,142) (1,197) Other income and expenses (1,109) (1,260) Operating Income Recurring before amortization/depreciation 1,396 1,633 +17.0% Amortization / Depreciation (507) (549) Oper
Slide 14: Efficiency ahead of objective
Efficiency ahead of objective Operating margin Operating margin Gas & Services 19.2% 18.1% 19.3% excl. natural gas. In €m 1 100 +45 1,092 +127 +103 +0 +36 1 000 <70> <21> 908 900 800 700 0 OIR OIR S1 09 Effet volume Effet Energie Augmentation Prix hors Efficacités _ Change / S1 10 Growth Energy Cost
Slide 15: Significant increase in net income
Significant increase in net income In €m H1 09 H1 10 Change Operating income recurring 889 1,084 +22.0% Other non-recurring operating income & expenses 30 20 Operating income 919 1,104 + 20.1% Net financial costs and other net financial expenses (120) (164) Income taxes (185) (253) Tax rate 23.1% 26
Slide 16: Debt under control
Debt under control In €m <5,691> <448> <4,891> <599> 352 + 1,059 <812> Gearing Gearing 63% Industrials: € <665> m 68% Financials: € <158> m Divestitures: € 11 m Net debt Cash flow * Net Net Forex Net debt Dec 31, 2009 Investments Dividends / Scope June 30, 2010 * net cash from operating activities,
Slide 17: Recovery in growth projects
Recovery in growth projects Benoît Potier, Chairman and CEO
Slide 18: Investment momentum is back
Investment momentum is back Portfolio Decisions Capex Start-ups Ramp-ups Investment Industrial and 12-month portfolio decisions financial capex In € Bn In € Bn In € Bn 1.7 5 4.7 3.0 4 0.9 2.4 1.7 0.7 0.9 3 1.7 0.9 0.8 0.8 1.1 2 1.0 0.8 3.8 1.6 1.4 0.8 3.0 2.5 2.4 1 1.8 1.6 1.4 0.4 0 Jun- dec Jun- de
Slide 19: Industrial Merchant: acceleration in emerging economies
Industrial Merchant: acceleration in emerging economies Acquisitions * Liquid capacities Filling units Poland Russia Emerging Europe North Africa China Panama Middle-East India Vietnam Brasil Central West Africa Paraguay Chile Emerging IM: + 21.6 % in H1 2010 * as of August 2, 2010 Air Liquide, worl
Slide 20: Large Industries: outsourcing growth
Large Industries: outsourcing growth 3 takeovers * 9 start-ups in H1 2010 Germany United-States Syngas China Steam and utilities Japan Air gases Air gases Egypt Air gases South Korea India H2 + CO Brazil Air gases Air gases Large Industries: + 13.3 % in H1 2010 * as of August 2, 2010 Air Liquide, wo
Slide 21: Homecare: strategic deployment
Homecare: strategic deployment Acquisitions* Offer expansion New territories Poland France China DinnoSanté Romania Extension Kalinox market South Korea approval Medions Brazil Global Med Australia Snore Homecare sales: + 9.4% in H1 2010 * as of August 2, 2010 Air Liquide, world leader in gases for
Slide 22: 2010 Outlook
2010 Outlook H1 2010 Solid performance Growth and operational control Recovery in development projects 2010 objective maintained 1 250 Résultat net En M€ 1 000 750 Based on current trends, continuous growth in net profit 500 in line with long term performance 250 0 1989 1991 1993 1995 1997 1999 2001
Slide 23: Appendices
Appendices - Consolidated statements - Activity analysis
Slide 24: Impact of currency and natural gas on revenue
Impact of currency and natural gas on Gas & Services revenue Currency In €m Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 €/USD +54 +18 (46) (26) +30 €/CAD (1) 0 +2 +14 +25 €/JP¥ +42 +41 (8) (7) +31 Other (9) (15) (10) +31 +71 Total currency impact +86 +44 (62) +12 +157 Average exchange rates Q2 09 Q3 09 Q4 09 Q1 1
Slide 25: Consolidated P&L
Consolidated P&L In €m H1 2009 H1 2010 Revenue 5,937 6,516 Cost of goods (4,541) (4,883) Operating income recurring before depreciation 1,396 1,633 Depreciation and amortization expense (507) (549) Operating income Recurring 889 1,084 Net non–recurring operating income 30 20 Operating income 919 1,1
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet In €m ASSETS 31/12/09 30/06/10 EQUITY AND LIABILITIES 31/12/09 30/06/10 Goodwill 4,003 4,395 Shareholders’ equity 7,584 8,165 Fixed assets 10,597 11,728 Minority interests 168 190 Other non-current assets* 940 979 Total equity 7,752 8,355 Total non-current assets 15,540 17
Slide 27: Cashflow Statement
Cashflow Statement In €m H1 09 H1 10 Funds provided by operations 1,084 1,266 Changes in working capital (7) (207) Other items 36 0 Net cash from operating activities 1,113 1,059 Purchase of PPE* and intangible assets (772) (665) Purchase of financial assets (27) (158) Proceeds from sale of PPE*, in
Slide 28: Number of outstanding shares evolution
Number of outstanding shares evolution H1 2010 Average number of shares outstanding 281,167,826 Number of shares as at June 30, 2010 282,931,628 Air Liquide, world leader in gases for industry, health and the environment H1 2010 Results 28
Slide 29: Appendices
Appendices - Consolidated statements - Activity analysis
Slide 30: H1 G&S comparable revenue growth: +9.5%
H1 G&S comparable revenue growth: +9.5% In €m +9.5% comparable* +13.4% published 6 000 169 5,695 477 27 5,022 5 000 4 000 3 000 2 000 0 H1 2009 Comparable Natural gas Forex H1 2010 growth* * excl. forex & natural gas Air Liquide, world leader in gases for industry, health and the environment H1 2010
Slide 31: Quarterly sequential growth
Quarterly sequential growth 2009-2010 quarterly revenue, at constant natural gas and forex Base 100 115 115 +3.3%* +4.1%* 110 110 +4.4%* +1.4%* 105 105 +3.1%* +2.5%* +1.4%* +1.8%* 100 100 95 95 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2009 2009 2009 2009 2010 2010 2009 2009 2009 2009 2010 2010 Group Gas
Slide 32: Revenue breakdown by region
Revenue breakdown by region Americas Europe 24% H1 2010 Gas & Services revenue : 53% 21% €5.7bn Asia 2% Middle East & Africa Europe: €3.0bn Americas: €1.3bn Asia: €1.2bn 4% 7% 10% 25% 28% 36% 42% 46% 4% 37% 35% 26% Industrial Merchant Large Industries Healthcare Electronics Air Liquide, world leader
Slide 33: Europe in Q2: Moderate recovery
Europe in Q2: Moderate recovery 4% Sales Gas & Services Q2: 25% 36% Industrial Merchant €1,505m Recovery in bulk volumes 35% Cylinders activity still low Comparable growth Q2 10/09 : +5.0%* Eastern Europe dynamic Large Industries +1.9% Industrial Merchant Strong recovery in steel +5.2% Large Industr
Slide 34: Americas in Q2: Activity in excess of pre-crisis level
Americas in Q2: Activity in excess of pre-crisis level 7% Sales Gas & Services Q2: 10% Industrial Merchant €703m 48% 35% Strong growth in Latin America Industrial production recovery in Comparable growth Q2 10/09 : +10.4%* Canada Progressive improvement in the US +7.4% Industrial Merchant Large Indu
Slide 35: Asia-Pacific in Q2: Recovery and start-ups
Asia-Pacific in Q2: Recovery and start-ups Sales Gas & Services Q2: 28% Industrial Merchant 42% €655m 4% Partial recovery in Japan 26% New capacities in China Comparable growth Q2 10/09 : +28.6%* Solid industrial production growth in the region +21.5% Industrial Merchant Large Industries Large Indus
Slide 36: Engineering & Construction: Order intake increase
Engineering & Construction: Order intake increase In €m H1 09 H1 10 Consolidated revenues 505 388 OIR* margin 9.8% 9.4% Total order intake 350 420 Total orders-in-hand 5,000 4,200 Total orders-in-hand breakdown at June 30, 2010 ASU 4% 10% HyCO 12% Traditional energy Alternative energy 56% 18% Renewa
Slide 37: Gas & Services revenue growth by quarter
Gas & Services revenue growth by quarter Published Natural Gas Forex Comparable Growth Growth Q2 2009 -8.2% -6.0% +2.9% -5.1% Q3 2009 -8.9% -5.2% +1.5% -5.2% Q4 2009 -9.2% -2.8% -1.8% -4.6% Q1 2010 +8.3% -0.4% +0.4% +8.3% Q2 2010 +18.6% -1.6% -6.3% +10.7% Air Liquide, world leader in gases for indus
Slide 38: Revenue analysis by quarter (1)
Revenue analysis by quarter (1) Sales in €m Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q2 10/09 Q2 10/09 published comparable Europe 1,402 1,404 1,496 1,497 1,505 +7.3% +5.0% Americas 566 552 577 643 703 +24.3% +10.4% Asia-Pacific 449 490 522 558 655 +45.7% +28.6% Middle East & Africa 57 68 60 62 71 +26.4% +14.9
Slide 39: Revenue analysis by quarter (2)
Revenue analysis by quarter (2) Sales in €m Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q2 10/09 Q2 10/09 published comparable Industrial Merchant 1,048 1,069 1,088 1,106 1,208 +15.3% +7.6% Large Industries 771 764 848 936 950 +23.2% +13.0% Electronics 207 227 232 252 293 +41.3% +30.4% Healthcare 448 454 487 466
Slide 40: Operating margin (OIR/Revenue)
Operating margin (OIR/Revenue) H1 07 H2 07 2007 2007 Group 15.2% 15.2% 15.2% Gas & Services 17.6% 18.8% 18.1% H1 08 H2 08 2008 2008 Group 14.9% 14.8% 14.9% Gas & Services 17.5% 17.8% 17.7% H1 09 H2 09 2009 2009 Group 15.0% 17.6% 16.3% Gas & Services 18.1% 21.0% 19.6% H1 2010 Excl. Published Nat. gas
Slide 41: For further information, please contact
For further information, please contact: Investor Relations Corporate Communications Virginia Jeanson + 33 (0)1 40 62 57 37 Anne Lechevranton + 33 (0)1 40 62 50 93 Annie Fournier + 33 (0)1 40 62 57 18 Corinne Estrade-Bordry + 33 (0)1 40 62 51 31 Bastien Maurice + 33 (0)1 40 62 59 38 www.airliquide.c