Air Liquide SA · EURONEXT:AI
Air Liquide SA — Q1 2009 Earnings Presentation
24 slides from Air Liquide SA's earnings presentation, Apr 28, 2009
Slide 1: 1st Quarter 2009 Consolidated Revenue
1st Quarter 2009 Consolidated Revenue Klaus Schmieder, Senior Executive Vice-President Pierre Dufour, Senior Executive Vice-President Fabienne Lecorvaisier, Chief Financial Officer April 28, 2009
Slide 2: 1st Quarter 2009: Performance confirms the resilience of the Group
1st Quarter 2009 : Performance confirms the resilience of the Group in a weak industrial production environment … … marked by strong disparities between regions, sectors, applications and products Management actions have been strengthened and adapted to current activity levels The portfolio remains
Slide 3: Group revenue resilient
Group revenue resilient In €m - 3.4% 3 400 comparable 3 200 3 091 - 105 - 62 + 73 2 997 3 000 2 800 2 600 2 400 2 200 - 3.0% as published 0 2 000 Q1 2008 Comparable Natural gas Currency Q1 2009 growth 3 Q1 2009 Consolidated Revenue – April 28, 2009
Slide 4: Contribution by activity
Contribution by activity Sales Sales Q1 09/08 Q1 09/08 In €m Q1 08 Q1 09 as published comparable* Gas & Services 2 649 2 548 - - 3.8% - - 4.2% Engineering & Construction 189 247 - + 30.4% - + 31.1% Other activities 253 202 - - 20.0% - - 20.8% Group Total 3 091 2 997 - 3.0% - 3.4% * Comparable : excl
Slide 5: Still strong disparities in different markets
Still strong disparities in different markets Oxygen in Canada : flat steel Hydrogen in France : refining 100 100 75 75 50 50 25 25 Maintenance stoppages Base 100 Base 100 0 0 june. july. aug. sept. oct. 08 nov. dec. jan. 09 feb. 09 mar. nov. dec. jan. feb. mar 08 08 08 08 08 08 09 08 08 09 09 . 09
Slide 6: Two distinct economic cycles
Two distinct economic cycles Chemicals for Cosmetics 100 2009 2010 95 90 + 85 Base 100 80 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 - Liquid Argon volumes per working day Japan 100 Consumption Cycle Investment Cycle 80 Source : Coe-Rexecode March 2009 60 Base 100 40 Sept. 08 Oct. 08 Nov. 08 D
Slide 7: Growth continues in 50% of Gas & Services activities
Growth continues in 50% of Gas & Services activities Industrial Merchant: Large Industries: 10% 20% 6.5% 6.5% 6.9% 17.2% 16.0% 15.5% 5% 3.4% 15% 10.6% 0% 10% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 5% -5% 2.2% 0% -10% -7.7% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 33% Mid-term revenue 42% objectives
Slide 8: Europe: Stable due to business mix and start-ups
Europe : Stable due to business mix and start-ups 3% Industrial Merchant: 24% 36% Q1 09 breakdown Bulk : impact of autos and materials Cylinders : more resilient activity, 37% especially in Northern Europe Positive pricing effect : Gas & Services revenue: €1 471m product/client mix + 2008 pricing Q1
Slide 9: Americas: Resilience of prices and contracts
Americas : Resilience of prices and contracts 7% 9% Industrial Merchant: Q1 09 breakdown 50% Strong decrease of volumes in the USA 34% Good demand for fracking Growth in Latin America Gas & Services revenue: €579m Positive impact of pricing campaigns across the region Q1 09/08 comparable: -4.1%* Lar
Slide 10: Asia: Decline of export-led activities
Asia : Decline of export-led activities Industrial Merchant: 28% Q1 09 breakdown 45% Significant decrease of 6% industrial production index in 21% Japan Dynamic demand in China Gas & Services revenue: €447m Q1 09/08 comparable: -18.2% * Growth in Australia Large Industries: Industrial Merchant -13.4
Slide 11: Engineering & Construction sales
Engineering & Construction sales In €m E&C third-party sales 400 315 323 300 253 247 189 200 100 0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Total order in-take at 238 million euros, trending down New orders from Asia Slowdown of projects within mature economies Expected 2009 third-party sales at €1bn
Slide 12: Reminder of scenarios presented in February 2009
Reminder of scenarios presented in February 2009 Rem 2 potential scenarios in der Extended crisis: Partial recovery in H2: Cyclical sectors at -30% Cyclical sectors at -10% GDP mature economies -1 to -2%* GDP mature economies 0% GDP emerging economies +2 to +3% GDP emerging economies +4% Impact on G
Slide 13: Group activity in Q1
1st Quarter 2009 Group activity in Q1 : Forex Cyclical Defensive Start-ups sectors sectors & pricing & acquisitions +2% - 7% + 0% + + 4% + Nat gas -2% Sharp slowdown in cyclical sector volumes (> -30%) Weak economic activity impacting defensive sectors (< -10% in volume) Start-ups and acquisitions i
Slide 14: Management actions strengthened and adapted
Management actions strengthened and adapted 2009 Cash Priority given to cash No new customer incidents since January 2008 provisions sufficient Debt held at year end level Costs Gross margin maintained Acceleration of cost reduction program to reach 300 million euros for the full year Headcount down
Slide 15: Solid portfolio and confirmation of start-ups
Solid portfolio and confirmation of start-ups Portfolio Decisions LT portfolio Decisions maintained delayed New > Cancellations projects Start-ups and Capex Ramp-ups 2009 objective Majority of start-ups of €1.6bn confirmed : maintained 36 expected in 2009-2010 Mid and long-term Short-term 15 Q1 2009
Slide 16: Outlook
Outlook « Despite weak global industrial production in the 1st quarter 2009, Group revenue was broadly resilient due to the solid mix of activities across different markets and the recent start-up of new units. This reflects the robustness of the business model. The positive signs first observed at
Slide 17: Appendices
mar LIQUIDE me SSS BBM BM BM BM EM ER EB EB eB ER eM EM SK = = Appendices
Slide 18: Gas & Services revenue
Gas & Services revenue +9.9% +9.6% 10% +9.1% +9.1% +7.9% +7.9% +6.3% +5.3% 5% 0% -5% - 4.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2007 2007 2007 2008 2008 2008 2008 2009 Comparable growth of Gas & Services revenue* * excluding impact of currency and natural gas 18 Q1 2009 Consolidated Revenue – April 28,
Slide 19: Gas & Services quarterly growth
Gas & Services quarterly growth Published Natural gas Currency Comparable growth growth Q1 2008 +8.0% +2.1% - 3.2% +9.1% Q2 2008 +9.5% +4.1% - 4.5% +9.9% Q3 2008 +11.1% +4.6% - 3.1% +9.6% Q4 2008 +12.4% +1.4% +3.1% +7.9% Q1 2009 - 3.8% - 2.3% +2.7% - 4.2% 19 Q1 2009 Consolidated Revenue – April 28,
Slide 20: Geographical breakdown of sales
Geographical breakdown of sales Q1 2009 Gas & Services revenue : €2 548m 2% 18% Europe Americas 57% Asia-Pacific 23% Middle-East & Africa 20 Q1 2009 Consolidated Revenue – April 28, 2009
Slide 21: Sequential analysis of sales (1)
Sequential analysis of sales (1) Q1 09/08 Q1 09/08 Revenue in €m Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Comparable as published Europe 1 481 1 491 1 505 1 628 1 471 -0.7% -0.4% Americas 635 675 683 667 579 -8.8% -4.1% Asia-Pacific 491 482 517 575 447 -8.9% -18.2% Middle East & Africa 42 46 55 54 51 +22.3% +2
Slide 22: Sequential analysis of sales (2)
Sequential analysis of sales (2) Q1 09/08 Q1 09/08 Revenue in €m Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Comparable as published Industrial Merchant 1 133 1 136 1 154 1 185 1 071 -5.5% -7.7% Large Industries 857 901 931 986 836 -2.5% +2.2% Electronics 245 237 257 305 206 -16.0% -26.5% Healthcare 414 420 419 4
Slide 23: Impact of currency and natural gas
Impact of currency and natural gas In €m Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 €/USD (64) (73) (43) +55 +54 €/CAD +3 (9) (12) (15) (9) €/JP¥ (2) (1) 0 +74 +58 Others (21) (32) (25) (21) (30) Total (84) (115) (80) +93 +73 Natural gas impact +51 +100 +114 +36 (62) Average exchange rates for the period Q1 08 Q
Slide 24: 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 www.airliquide.com Corporate headquarters : 75, Quai d