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

  1. Slide 1: Q2 FY'10 Earnings Conference Call

    Q2 FY’10 Earnings Conference Call April 22, 2010

  2. 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

  3. 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

  4. Slide 4: Financial Performance

    Q2 FY’10 Earnings Financial Performance* FY04 thru FY08 H109 H209 H110 Sales 14% (16%) (25%) 7% ( CAGR| % chg vs PY ) Operating Margin 12.8% +1.8% 14.6% 13.2% 15.5% 16.0% Adj’d Cont Ops EPS 21% (24%) (16%) 28% ( CAGR| % chg vs PY ) ROCE (4 quarter trailing) 9.6% +3.4% 13.0% ROCE (instantaneous) 10%

  5. Slide 5: Q2 Financials

    Q2 FY’10 Earnings Q2 Financials* Fav/(Unfav) vs. ($millions, Continuing Operations) Q2 FY10 Q2 FY09 Q1 FY10 Sales $2,249 15% 3% - Underlying business 9% 3% - Energy/RM pass-thru 2% 2% - Currency 4% (2%) Operating Income $364 40% 6% Operating Margin (%) 16.2% 290bp 30bp Net Income $267 41% 6% Diluted

  6. Slide 6: Q2 EPS Analysis

    Q2 FY’10 Earnings 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) $0.32 Cost 0.12 Currency 0.05 Equity affiliates income 0.02

  7. Slide 7: Merchant Gases

    Q2 FY’10 Earnings Merchant Gases Fav/(Unfav) vs. Q2 FY10 Q2 FY09 Q1 FY10 Sales $922 6% (1%) - Volume 1% 1% - Price (1%) 1% - Currency 6% (3%) Operating Income $178 14% (6%) Operating Margin 19.3% 140bp (100bp)  Volume improvement led by Asia  Prices weaker on lower surcharges, LH2 (nat’l gas) 7

  8. Slide 8: Merchant Gases: Q2 Sales Analysis vs PY

    Q2 FY’10 Earnings Merchant Gases: Q2 Sales Analysis vs PY North America Europe Asia Sales % change 2% 6% 24% - Volume 5% (2%) 22% - Price (3%) -% (4%) - Currency - 8% 6%  North America driven by LAR & LH2  Europe package gas volumes weak  Asia strong recovery continues 8 Note: The above excludes

  9. Slide 9: Tonnage Gases

    Q2 FY’10 Earnings Tonnage Gases Fav/(Unfav) vs. Q2 FY10 Q2 FY09 Q1 FY10 Sales $757 21% 8% - Volume 11% 1% - Energy/RM pass thru 6% 8% - Currency 4% (1%) Operating Income $107 9% 7% Operating Margin 14.2% (150bp) (20bp)  Improvement in chemical & steel markets  Volumes up on new plant on-streams 9

  10. Slide 10: Electronics & Performance Materials

    Q2 FY’10 Earnings Electronics & Performance Materials Fav/(Unfav) vs. Q2 FY10 Q2 FY09 Q1 FY10 Sales $451 36% 4% - Volume 38% 5% - Price (4%) -% - Currency 2% (1%) Operating Income $57 18% Operating Margin 12.6% 140bp  Electronics sales 28% 4%  Performance Materials sales 45% 4% 10

  11. Slide 11: Equipment & Energy

    Q2 FY’10 Earnings Equipment & Energy Fav/(Unfav) vs. Q2 FY10 Q2 FY09 Q1 FY10 Sales $119 (7%) 10% Operating Income $18 12% 133% Sales Backlog $343 22% 5%  Improving business mix  Favorable project performance  Backlog increases on PNG LNG order 11

  12. Slide 12: Outlook

    Q2 FY’10 Earnings Outlook Q3 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

  13. Slide 13: Appendix Slides

    Q2 FY’10 Earnings Appendix Slides Q2 FY’10 Earnings

  14. Slide 14: Appendix: Q2 Sales Analysis

    Q2 FY’10 Earnings Appendix: Q2 Sales Analysis 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%) 14

  15. 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 GAAP Measure Adjustment Non GAAP Measure $ % $ % Q210 vs. Q209 - Total Co. Q210 Q209 Change Change Q210 (1) Q210 Q209 Change Change Sales 2,249.0 1,955.4 293.6 15% 2,249.0 1,955.4 293.6 15% Operat

  16. Slide 16: Appendix: ROCE

    Q2 FY’10 Earnings Appendix: ROCE $ Millions Quarter Ended Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Numerator Operating 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 3

  17. Slide 17: Appendix: ROCE Tax Rate

    Q2 FY’10 Earnings Appendix: ROCE Tax Rate Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 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 Non

  18. 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) GAAP Measure Non GAAP Ajusts. Non GAAP Measure 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% Operating Income 836.9 1,495.8 (49.

  19. Slide 19: Non GAAP Appendix: Half Year Deltas

    Q2 FY’10 Earnings Non GAAP Appendix: Half Year Deltas ($ Millions, except per share data) First Half FY09 Second Half FY09 First Half FY10 6 months 6 months 6 months GAAP Measure Q109 Q209 to date Q309 Q409 to date Q110 Q210 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

  20. Slide 20: Non GAAP Appendix: ROCE FY04 and FY08

    Q2 FY’10 Earnings Non GAAP Appendix: ROCE FY04 and FY08 $ Millions FY04 FY08 Quarter Ended Q403 Q104 Q204 Q304 Q404 Q407 Q108 Q208 Q308 Q408 Numerator Operating 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 be

  21. Slide 21: Non GAAP Appendix: ROCE Tax Rate FY04 and FY08

    Q2 FY’10 Earnings Non GAAP Appendix: ROCE Tax Rate FY04 and FY08 Q104 Q204 Q304 Q404 Q108 Q208 Q308 Q408 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,

  22. Slide 22: Thank you

    Thank you www.airproducts.com

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