Air Liquide SA · EURONEXT:AI
Air Liquide SA — Debt Investor Presentation (March 2024)
55 slides from Air Liquide SA's debt investor presentation, March 2024
Slide 1: Credit Investors Presentation FY 2023
Credit Investors Presentation Strong Performance Doubling ADVANCE Margin Improvement Ambition FY 2023 1 Credit Investors Presentation FY 2023
Slide 2: Agenda
Agenda 1 Introduction 2 Strategic and Operational Review 3 Strong Financial Performance Through Disciplined Execution 4 Group Credit Profile 5 Appendix 2 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 3: Introduction
01 Introduction 3 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 4: A World Leader in Gases, Technologies and Services for Industry & Health
A World Leader in Gases, Technologies and Services for Industry & Health 72 67,800 >4m ~€27.6bn Customers Countries Employees of Sales in 2023 and Patients ~€3.1bn ~€6.4bn ~€92bn Net Profit in 2023 Cash Flow in 2023* Market Capitalization** * cash flow from operating activities before changes of worki
Slide 5: A Strong Business Model
A Strong Business Model 5 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 6: A Resilient Business Model
A Resilient Business Model Large industries - 30%(1) Healthcare - 16%(1) ▪ Serving 2m patients & 20,000 hospitals ▪ Long-term contracts >15 years ▪ Growth driven by aging population and the rise of chronic diseases ▪ Take-or-Pay clauses & Monthly Fees ▪ A balanced mix of accreditations and mid-term
Slide 7: FY 2023 - Beneficial Mix of Geographies and Activities
FY 2023 - Beneficial Mix of Geographies and Activities 2023 Gas & Services Revenue €26,360m 3% Global Markets & Technologies Engineering & Construction 2% 9% Electronics Europe Asia-Pacific 43% Industrial Americas Merchant €9.7bn Africa €5.4bn €10.2bn 15% Healthcare Middle-East €27,608m €1.0bn 2023 Gr
Slide 8: 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 9: Strategic and Operational Review
02 Strategic and Operational Review 9 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 10: Strong 2023 Performance
Strong 2023 Performance Comparable OIR Recurring Cash Flow Recurring (3) Sales Growth margin(1) Net Profit(2) after WCR ROCE(4) + % 4 + 80 + 13% + 13% 10.6% bps (1) Improvement of the operating Income Recurring on Sales ratio excluding energy passthrough impact (2) Excluding exceptional and significan
Slide 11: Significant 2023 Margin Improvement
Significant 2023 Margin Improvement IM Pricing Efficiencies +8 % + 23% Delivery Mindset Strong execution 2023 figures 11 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 12: Accelerated Investments to Secure Profitable Growth
Accelerated Investments to Secure Profitable Growth 2 main drivers(1) Record high backlog €4.4 >40% Energy Transition Normand’Hy bn Trailblazer Porthos Grandpuits Becancour Others Low-C Biogas ASUs electrification >35% Electronics in Asia, USA Investment Backlog(2) (1) Projects in investment backlog (
Slide 13: Active Development of Investment Projects
Active Development of Investment Projects Energy Transition Projects awarded fundings Electronics ■ Total of 12 LI projects €2.7bn Capex ▪ Investment opportunities ▪ Advanced Materials ■ 3 projects signed Reshoring projects in $200m capex or started(1) Europe and US for 2 new production ■ 9 projects
Slide 14: Strong Progress on CO2 Emissions Roadmap
Strong Progress on CO2 Emissions Roadmap Deploying decarbonization plan around 3 levers 2023 achievement 2023 key decisions to contribute in a few years -1.8 m tonnes of CO2 emissions ⅓ ⅓ Additional Renewable PPAs(2) Carbon Capture Low-Carbon in 2023 3 Usage / Storage Electricity -5% (1) levers Sour
Slide 15: Doubling the ADVANCE Margin Improvement Ambition
Doubling the ADVANCE Margin Improvement Ambition Confirmed objectives Acceleration of margin improvement and investments decisions ✔ Sales growth +5-6% CAGR(1) ■ +320 over 4 years(4) bps ✔ ROCE >10% by 2023 and forward(2) ■ ✔ CO2 emissions inflection around 2025 ■ ✔ €16bn investment decisions(3) ■ x2
Slide 16: Strong Financial Performance Through Disciplined Execution
03 Strong Financial Performance Through Disciplined Execution 16 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 17: Very Solid Comparable Sales Growth
Very Solid Comparable Sales Growth Sales in €m FY 22 FY 23 FY 23/22 FY 23/22 Q4 23/22 As published Comparable Comparable Gas & Services 28,573 26,360 -7.7% +4.2% +4.6% Engineering & 474 390 -17.7% -15.6% -25.4% Construction Global Markets & 887 858 -3.3% -1.0% -5.7% Technologies(1) Group Total 29,93
Slide 18: Improved Growth in Q4 2023
Improved Growth in Q4 2023 2023 Gas & Services comparable sales growth FY 23: +4.2% 18 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 19: Resilient Growth Leveraging Mix and Business Model
Resilient Growth Leveraging Mix and Business Model FY 2023 Gas & Services comparable sales growth by Activities Europe +9% +4 % Asia-Pacific +2% +8% Americas +5 % Middle-East -2% Africa +7 % +2% Group Comparable sales growth +4 % 19 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 20: +80bps of OIR Margin Improvement, +150bps over 2 years
+80bps of OIR Margin Improvement, +150bps over 2 years FY 23/22 FY 23/22 In €m FY22 FY 23 As published Comparable Revenue 29,934 27,608 -7.8% +3.7% Purchases (13,813) (11,147) -19.3% Personnel Expenses (4,963) (5,100) +2.7% Other net income and expenses (3,830) (3,811) -0.5% Operating profit before d
Slide 21: Delivering on Pricing and Efficiencies Fostering Margin Improvement
Delivering on Pricing and Efficiencies Fostering Margin Improvement IM Pricing Efficiencies Portfolio Management +8.4% €466m 14 acquisitions +14.7% U.S., Canada, Italy, China, India WIP €400m Sweden, Benelux +3.6% Germany 2021 2022 2023 2 divestitures Cumulative pricing effect base 100 Year 2020 ▪ +23%
Slide 22: High & Resilient IM Pricing On Top of Record Price Increase in 2022
High & Resilient IM Pricing On Top of Record Price Increase in 2022 Q4 23 FY 23 Pricing context ▪ Inflationary environment Americas +6.3% ▪ Continued smart pricing management Europe +14.0% ▪ Decrease of Energy prices Asia-Pacific +7.3% ▪ Continued tightness in several molecules Middle-East & Africa +9
Slide 23: Strong Growth Leverage on Net Profit
Strong Growth Leverage on Net Profit FY 23/22 FY 23/22 In €m FY22 FY 23 As published Excl. FX Revenue 29,934 27,608 -7.8% -3.6% Operating income recurring 4,862 5,068 +4.2% +3.7% Other non-recurring operating income & expenses (571) (496) comparable Operating income 4,291 4,572 Net financial costs and
Slide 24: Improving ROCE While Increasing Capex
Improving ROCE While Increasing Capex Recurring ROCE after tax(1) 10.6% Airgas acquisition (1) Recurring ROCE based on Recurring Net Profit, see definition in the appendix of the management report 24 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 25: Record High Investment Decisions & Backlog
Record High Investment Decisions & Backlog 12-months investment Investment Decisions (1) Investment Backlog (1) Opportunities (1) Financial Industrial High level of opportunities: Strong activity signing: Record high backlog: ▪ 3 major Energy Transition LI projects: ▪ Despite major signed projects e
Slide 26: Start-up / Ramp-up Contribution to Sales
Start-up / Ramp-up Contribution to Sales Start-up date of major projects Sales Contribution(1) 2023 2023 2024 2024 Q4 Q1 Q2 H1 Q3 H2 Q4 FY 2023 €267m Asia, Asia, Asia, Europe Americas Americas (1) Americas Asia, Asia, Americas, Americas, Europe, Europe AMEI FY 2024 €270 Americas, Americas, Outlook -
Slide 27: 2024 Outlook
2024 Outlook 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) (1) Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant transactions that
Slide 28: 2023 Takeaways
2023 Takeaways Demonstrating Once Again the Strength of the Business Model Resilience Sustained growth drivers Growth accelerators Healthcare Growth Energy Transition Industrial Merchant Electronics Performance Doubling initial margin improvement ambition Supported by strong Innovation & outstanding
Slide 29: Group Credit Profile
04 Group Credit Profile 29 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 30: Net Debt ratios under control
Net Debt ratios under control As of Dec 31th, 2023 (€m) 10,261 9,221 1.22x DEBT DEBT DEBT DEBT DEBT DEBT DEBT DEBT DEBT / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY / EQUITY 57% 90% 80% 69% 64% 56% 48% 42% 37% 30 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 202
Slide 31: Strong Cash Flow Allocated to Capex and Dividends
Strong Cash Flow Allocated to Capex and Dividends +13 % excl.FX(1) <10,448> <10,261> +6,357 <1,620> <280> <102> <9,221> <3,393> +172 Gearing 47.5% Gearing <94> Gearing 41.8% 36.8% (1) Growth of Cash Flow from Operations after changes in WCR, excluding FX impact (2) Acquisitions, transactions with mi
Slide 32: A Well-Diversified Financing Structure
A Well-Diversified Financing Structure As of Dec 31th, 2023 Fixed / Variable rates Sources Currencies / Net Debt (gross debt) Private placements Commercial Others 15% 7% paper Fixed 4% rate JPY 3% EUR 52% 93% Bank debt 14% Others(1) 1% Bonds USD 30% Variable 74% Market debt rate 85% 7% (1) Others: pu
Slide 33: Debt Maturity Profile and Available Liquidity
Debt Maturity Profile and Available Liquidity As of Dec 31th, 2023 Group gross debt Available liquidity maturity profile €1.6bn €m Cash and Cash Equivalent 10,000 > 5 years 7,500 €5.4bn €3.8bn Confirmed 5,000 Between 1 and Credit Lines 5 years 2,500 < 1 year 0 33 THIS DOCUMENT IS PUBLIC Credit Investor
Slide 34: Average cost of net debt
Average cost of net debt As of Dec 31th, 2023 3.4% 3% 2023 Debt refinancing in excellent market conditions September 2023 JPY 20bn. ~0.82% EMTN 8-year PP 34 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 35: Diversified Capital Market Debt well spread over time
Diversified Capital Market Debt well spread over time As of Dec 31th, 2023 2046 2038 35 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 36: "A" Long term Credit Rating Commitment
“A” Long term Credit Rating Commitment Scope Ratings added as a third rating agency in 2023 Long-term rating: A Short-term rating: A-1 Long-term rating: A2 Short-term rating: P-1 Long-term rating: A Short-term rating: S-1 Outlook: Stable on 28 July 2021 Outlook: Stable on 6 September 2022 Outlook: P
Slide 37: Reminder on Air Liquide's Sustainable Financing Framework
Reminder on Air Liquide’s Sustainable Financing Framework In line with its sustainability strategy and its new ‘ACT for a Sustainable future’ program published in 2021, Air Liquide has established a Align funding strategy with Contribute Sustainable Financing mission, sustainability to the developme
Slide 38: Air Liquide's Inaugural Green Bond Final Allocation
Air Liquide’s Inaugural Green Bond Final Allocation A well-diversified portfolio in terms of project categories and geographies In May 2023, Air Liquide published its Second Green Bond Allocation and Impact Reporting, accounting for the full allocation of the €500m 2021 Green Bond Proceeds. Inaugural
Slide 39: Appendix
05 Appendix 39 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 40: Q4 – Higher Sales Growth in Americas and Europe
Q4 – Higher Sales Growth in Americas and Europe Americas All Business Lines contributing to growth ▪ Soft Steel and mixed Refining, higher U.S. Chemicals ● LI ▪ Customer turnarounds FY 22: +10.2% FY 23: FY 23: +5.1% +5.1% ▪ Sustained +5% pricing Sales ● IM ▪ Resilient gas volumes Q4 2023 ▪ Strong pri
Slide 41: Q4 – Contrasted Asia, Continued Momentum in AMEI
Q4 – Contrasted Asia, Continued Momentum in AMEI Asia High growth in IM ▪ Low activity FY 22: +7.0% FY 23: FY +1.8% 23: +1.8% ● LI ▪ Extended customer stoppage in China Sales ▪ +5% pricing Q4 2023 ● IM ▪ Strong volume growth in China €1,334m ▪ Solid Carrier Gases ● EL ▪ Low E&I and Specialty Materia
Slide 42: Q4 – Continued Robust Growth in IM, Stabilized Activity in LI
Q4 – Continued Robust Growth in IM, Stabilized Activity in LI Industrial Merchant Large Industries Continued pricing, resilient volumes Stable at low level Sales FY 23: Sales FY 22: +14.2% FY 23: +8.5% FY 22: -6.6% FY 23: -1.8% Q4 2023 Q4 2023 €2,937m €1,883m ■ +6% pricing on top of +15% in Q4 22 ■
Slide 43: Q4 – Electronics Off the Lows, Strong Momentum in Healthcare
Q4 – Electronics Off the Lows, Strong Momentum in Healthcare Electronics Healthcare Solid growth in Carrier Gases, high E&I sales Well balanced growth between HHC & Medical gases FY 22: +16.4% FY FY 23:23: +2.4% +2.4% FY 22: +3.6% FY 23: FY +8.4% 23: +8.4% Sales Sales Q4 2023 Q4 2023 €622m €1,030m ■
Slide 44: Main Components of Sales Growth
Main Components of Sales Growth +12.6% +3.7% Base business 2019 2020 2021 2022 2023 Start-ups, Ramp-ups, Site takeovers Base business Significant M&A 44 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 45: Q4 Sales and FY 2023 OIR by Geographies
Q4 Sales and FY 2023 OIR by Geographies Americas Europe Asia 5% 2% 10% IM 30% 31% 34% 30% LI Q4 sales €2,454m €2,428m €1,334m 15% split HC 70% EL 37% 3% 33% +5.6% +4.7% +1.8% Q4 23/22 Comparable Sales Growth Growth as Comparable Growth as Comparable Growth as Comparable in €m FY 2023 FY 2023 FY 2023
Slide 46: FY 2023 - Very High E&C Order Intake, Robust GM&T Underlying Activity
FY 2023 - Very High E&C Order Intake, Robust GM&T Underlying Activity Comparable sales growth Engineering & Construction Global Markets & Technologies FY 22: +20.6% FY 23: -15.6% FY 22: +25.8% FY 23: -1.0% Sales Sales FY 2023 FY 2023 €390m €858m Total FY 23 Sales(1) -5.5% FY 23 organic sales growth(
Slide 47: Record High Backlog at €4.4bn
Record High Backlog at €4.4bn Decisions Start-ups See definitions in appendix 47 THIS DOCUMENT IS PUBLIC Credit Investors Presentation FY 2023
Slide 48: Consolidated P&L
Consolidated P&L In €m FY22 FY 23 Revenue 29,934 27,608 Operating costs (22,606) (20,058) Operating profit before depreciation 7,328 7,550 Depreciation and amortization (2,466) (2,482) Operating income recurring 4,862 5,068 Other non-recurring operating income & expenses (571) (496) Operating income
Slide 49: Consolidated Balance Sheet Simplified
Consolidated Balance Sheet Simplified In €m ASSETS 31/12/2022 31/12/2023 EQUITY AND LIABILITIES 31/12/2022 31/12/2023 Goodwill 14,587 14,194 Shareholders' equity 23,736 24,321 Fixed assets 25,458 25,283 Minority interests 836 722 Other non-current assets * 1,235 1,137 Total equity 24,572 25,043 Total
Slide 50: Cash Flow Statement
Cash Flow Statement en€m in M€ FY22 FY 23 Capacité Funds provided d'autofinancement by operations 6,255 6,357 Variation in Changes duWorking Besoin en Capital Fonds de Roulement (397) (154) Autrescash Other éléments itemsavec impact sur la trésorerie (48) 60 Fluxcash Net net de from trésorerie operat
Slide 51: Impact of Currency and Energy on Gas & Services Revenue
Impact of Currency and Energy on Gas & Services Revenue in €m Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 €/USD +141 +271 +373 +274 +102 (50) (177) (121) €/ARS (5) (4) (7) (62) (40) (62) (97) (182) €/JP¥ (5) (10) (16) (23) (20) (17) (26) (21) €/Rmb +52 +59 +62 +6 (18) (51) (83) (42) €/ZAR +4 +2
Slide 52: ESG External Recognition in 2023
ESG External Recognition in 2023 “A-”on both Included in the Constituent of the Once again in the Climate and Water “DJSI Europe Index” “FTSE4Good index top 10% of the best performance series” rated companies “A” rating “Prime” status In the top 3% of “ESG Industry Top Rated” assessed companies “low
Slide 53: 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 54: For further information, please contact:
For further information, please contact: Upcoming events 2024 First Quarter Revenue: April 24, 2024 Investor Relations www.airliquide.com [email protected] Follow us Linkedin Corporate Headquarters: 75, Quai d’Orsay 75321 Paris Cedex 07 Communication Tel : +33 (0)1 40 62 55 55 RCS Paris 552 096
Slide 55: 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
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