Air Liquide SA · EURONEXT:AI
Air Liquide SA — Q3 2017 Earnings Presentation
36 slides from Air Liquide SA's earnings presentation, Oct 25, 2017
Slide 1: 2017 Q3 Activity: Accelerating Sales Growth in Gas & Services
2017 Q3 Activity Accelerating Sales Growth in Gas & Services Paris, 25 October 2017
Slide 2: 2017 Q3 Activity
2017 Q3 Activity Fabienne Lecorvaisier Executive Vice President & Chief Financial Officer 2 2528 July 2017 October 2017 H1 2017 Activity Q3 The world The worldleader leaderiningases, gases,technologies technologies and services servicesfor forIndustry Industryand andHealth Health
Slide 3: G&S Sales Growth Accelerating in Q3
G&S Sales Growth Accelerating in Q3 G&S sales up +4.0%*, after +2.7% in Q2 Improvement in all business lines, in particular: Continued ramp-up of IM in all regions, +4.3% EL sales growth back to high level at +7.2% Operational efficiencies in line, Airgas synergies ahead of plan * Comparab
Slide 4: Sales Growth Accelerating in G&S
Sales Growth Accelerating in G&S Refer to appendix for definitions 4 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The leader world leaderiningases, gases,technologies technologies and and services forIndustry services for Industryand andHealth Health
Slide 5: Strengthening IP – Negative FX & Softening Energy
Strengthening IP – Negative FX & Softening Energy Industrial Production FX Impact on Group sales Year on Year in % (3-month rolling average) +1.7% -4.0% H1 2017 Q3 2017 Energy Impact on Group sales +2.2% +1.0% H1 2017 Q3 2017 5 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The l
Slide 6: Key Growth Drivers in Q3 2017
Key Growth Drivers in Q3 2017 +8% +4% +13% +10% +7% INDUSTRIAL DEVELOPING GLOBAL MERCHANT ECONOMIES ASIA ELECTRONICS MARKETS & TECHNOLOGIES Refer to appendix for definitions 6 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies techn
Slide 7: Strong Base Business Contribution
Strong Base Business Contribution 2017 comparable growth 7 based on 2016 adjusted sales +14% +31% +29% START-UPS in Q3 17 G&S Quarterly Growth Analysis 7 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies technologies and services s
Slide 8: Q3 - IM Pursued Ramp-up in North America and Europe
Q3 - IM Pursued Ramp-up in North America and Europe AMERICAS EUROPE Q3 2017 Q3 2017 €1,968m €1,657m G&S Comparable Sales Growth Robust North America IM strengthening • +4% growth excl. hurricanes • LI: high demand of H2 • LI: limited U.S. hurricane impact; high volumes in • IM +4.2%: solid growth of
Slide 9: Q3 - Thriving Asia, Robust Middle-East
Q3 - Thriving Asia, Robust Middle-East MIDDLE-EAST AS I A - P AC I F I C & AF R I C A Q3 2017 Q3 2017 €1,010m €152m G&S Comparable Sales Growth Strong activity in all WBL Strong LI and IM • LI: several start-ups and sustained demand • High loading at Yanbu (KSA) • IM: very high bulk & cylinder volum
Slide 10: Q3 Focus - China Towards Higher Value End-Markets
Q3 Focus - China Towards Higher Value End-Markets >+15%* >+15%* ELECTRONICS HEALTHCARE • Leadership position HC • Solid backlog of projects in semi- EL >+10%* conductors and flat panels LARGE INDUSTRIES ~€1.5Bn • >35 plants (ASU & SMR); ~170 km Annual sales >+15%* IM LI pipeline networks • Hangzhou
Slide 11: Q3 - Robust LI, IM Driving Growth
Q3 - Robust LI, IM Driving Growth L AR G E INDUSTRIAL INDUSTRIES M E R C H AN T Q3 2017 Q3 2017 €1,286m €2,265m G&S Comparable Sales Growth High volumes & start-ups IM strengthening • Solid demand in H2 • Sales per day increasing in North America • ASU start-ups in China & Egypt • Very strong growth
Slide 12: Q3 Focus - Strengthening IM Activity in Key Geographies
Q3 Focus - Strengthening IM Activity in Key Geographies +4.3% Q3 2017 Sales growth* 0% +5% +10% * On a comparable basis 12 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies technologies and services servicesfor forIndustry Industry
Slide 13: Q3 - Solid HC, EL Back to High Growth
Q3 - Solid HC, EL Back to High Growth H E AL T H C AR E E L E C TR O N I C S Q3 2017 Q3 2017 €833m €403m G&S Comparable Sales Growth Sound growth, slightly higher M&A Strong growth in Carrier Gases and Advanced materials • Sustained development • 2 start-ups in Carrier Gases • Strong growth in devel
Slide 14: Order Intake Continues to Recover in E&C
Order Intake Continues to Recover in E&C Group and Third Party Orders E&C GMT • Group projects • Biogas purification • Chemical & biodiesel projects for 3rd parties • Maritime tanks 14 25 28 July 2017 October 2017 H1 2017 Q3 2017 Activity Results The world The worldleader leaderiningases, gases,tech
Slide 15: 2017 Q3 Performance and Investment Up-Date
2017 Q3 Performance and Investment Up-Date Fabienne Lecorvaisier Executive Vice President & Chief Financial Officer 15 2528 July 2017 October 2017 H1 2017 Activity Q3 The world The worldleader leaderiningases, gases,technologies technologies and services servicesfor forIndustry Industryand andHealth
Slide 16: Efficiencies Aligned with NEOS
Efficiencies Aligned with NEOS Q3 17 Cumulated Efficiencies Cumulated Efficiencies €1,200m 2020 €900m 2019 €229m €600m 2018 €300m 2017 €229m . Sept 30 16 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies technologies and services
Slide 17: Cumulated Synergies Ahead of Plan at US$177m
Cumulated Synergies Ahead of Plan at US$177m • Accelerated delivery of cost synergies • Revenue synergies in line with plan 17 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies technologies and services servicesfor forIndustry Indu
Slide 18: Solid Cash Flow, Net Debt Below €15bn
Solid Cash Flow, Net Debt Below €15bn YTD 2017 figures Cash Flow on Sales(1) Net CAPEX Net Debt 18.7% €1.6bn €14.9bn • €2.9bn(1) • 10.7% of sales • Gearing <90%(2) (1) Operating Cash Flow before changes in Working Capital Requirements, as of 30 September 2017 (2) Adjusted for dividend seasonality 18
Slide 19: Increased Activity in Portfolio of Opportunities
Increased Activity in Portfolio of Opportunities Investment Q3 Investment Q3 Start-up/Ramp-up Opportunities(1) Decisions(1) Sales Growth 12-month portfolio Contribution €2.1bn ~610m €51m • Increased bidding • LI in Americas and EL in Asia • 7 start-ups including • Small to medium size projects • M&A
Slide 20: Slightly Higher Backlog, in Line with Growth Expectations
Slightly Higher Backlog, in Line with Growth Expectations Investment Backlog in €bn (1) €0.8bn Yearly Sales Backlog(1) after full Ramp-ups (1) See definitions in appendix 20 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies technol
Slide 21: 2017 Outlook
2017 Outlook Acceleration of G&S sales growth “Assuming a comparable Q3 despite hurricanes impact 2017 environment, 2017 Air Liquide is confident IM strengthening and solid EL in its ability to deliver net Synergies ahead of plan profit growth in 2017” Net debt below €15bn 21 25 28 July 2017
Slide 22: Q3 2017 Appendix
Q3 2017 Appendix 22 2526 April 2017 October 2017 H1 2017 Activity Q3 The world The worldleader leaderiningases, gases,technologies technologies and services servicesfor forIndustry Industryand andHealth Health
Slide 23: Adjusted Sales Used as a Comparison Basis (1/2)
Adjusted Sales Used as a Comparison Basis (1/2) F Published growth E Comparable growth (2) As of January 1st, 2016 A B C D Published Airgas Airgas Adjusted Published 2016 (1) consolidated divestments Air Liquide 2017 2016 (1) Excluding Air Liquide Welding and Aqua Lung (2) Excluding currency and ene
Slide 24: Adjusted Sales Used as a Comparison Basis (2/2)
Adjusted Sales Used as a Comparison Basis (2/2) Published 2016 Published 2016 Air Liquide sales excluding Air Liquide Welding and Aqua Lung A excluding Air Liquide (IFRS 5, discontinued operations) Welding and Aqua Lung Airgas consolidated Published 2016 Airgas sales with divestments fully completed
Slide 25: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue Refer to appendix for definitions 25 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies technologies and services servicesfor forIndustry Industryand andHealth Health
Slide 26: Revenue Analysis by Quarter and by Business Line
Revenue Analysis by Quarter and by Business Line Refer to appendix for definitions 26 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies technologies and services servicesfor forIndustry Industryand andHealth Health
Slide 27: Revenue Analysis by Quarter and by Geography
Revenue Analysis by Quarter and by Geography Refer to appendix for definitions 27 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies technologies and services servicesfor forIndustry Industryand andHealth Health
Slide 28: G&S Revenue Growth by Quarter and by Impact
G&S Revenue Growth by Quarter and by Impact Refer to appendix for definitions 28 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies technologies and services servicesfor forIndustry Industryand andHealth Health
Slide 29: Q3 2017 G&S Revenue Breakdown by Region
Q3 2017 G&S Revenue Breakdown by Region EUROPE €1.7bn ASIA- AMERICAS PACIFIC €2.0bn €1.0bn €4,787m Industrial Merchant Large Industries Healthcare Electronics 29 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies technologies and se
Slide 30: Americas
Americas Q3 Gas & Services Sales: €1,968m INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE ELECTRONICS • Continued recovery: +4.2% excl. • +1.4% excl. hurricane impact • Dynamic South America: • Double-digit growth in hurricanes impact • Better O2 demand in Canada Brazil and Argentina Advanced materi
Slide 31: Europe
Europe Q3 Gas & Services Sales: €1,657m INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE • High growth despite one fewer • High volumes in hydrogen • Steady organic growth with few bolt-on working day (refineries) acquisitions • Pursued recovery, especially in • Sales improving sequentially • Continu
Slide 32: Asia-Pacific
Asia-Pacific Q3 Gas & Services Sales: €1,010m INDUSTRIAL MERCHANT LARGE INDUSTRIES ELECTRONICS • Buoyant China (again >+15% in Q3) • 3 start-ups in China including • New contracts in carrier gases with strong growth in cylinders/bulk 1 take-over • Very dynamic Advanced volume and pricing • Sustained
Slide 33: Industrial Merchant Pricing
Industrial Merchant Pricing Refer to appendix for definitions 33 25 28 July 2017 October 2017 H1 2017 Activity Q3 Results The world The worldleader leaderiningases, gases,technologies technologies and services servicesfor forIndustry Industryand andHealth Health
Slide 34: 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 replac
Slide 35: Regular and Sustained Performance
Regular and Sustained Performance 18,000 Revenue (in €m) +6.0% EPS(1) (in €) +7.2% 6 C AG R C AG R 15,000 over 30 years (2) 5 (2) over 30 years 12,000 4 9,000 3 6,000 2 3,000 1 0 0 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 1986 1988 1990 1992 1994 1996 1998 2000
Slide 36: For further information, please contact: Investor Relations
For further information, please contact: Investor Relations Communication Aude Rodriguez + 33 (0)1 40 62 57 08 Anne Bardot + 33 (0)1 40 62 50 93 Louis Laffont + 33 (0)1 40 62 57 18 Annie Fournier + 33 (0)1 40 62 51 31 Ludmilla Binet + 33 (0)1 40 62 57 37 Jérôme Zaman + 33 (0)1 40 62 59 3