Air Liquide SA · EURONEXT:AI

Air Liquide SA — Cheuvreux conference, Paris 2006

21 slides from Air Liquide SA's conference presentation, Sep 28, 2006

  1. Slide 1: Developing the Industrial Gas Market

    Developing the Industrial Gas Market John Glen, Group Finance Director Cheuvreux, Paris, September 28th, 2006

  2. Slide 2: Air Liquide: Focused on industrial gases

    Air Liquide: Focused on industrial gases Total Revenues: 10.4 bn € Gas & Services: 9.1 bn€ Growth/Yr Industrial Customers +3 to +5% Large Industries +7 to +9% Healthcare +6 to +8% Electronics +5 to +10% 0 1 2 3 4 5 Bn € Engineering and associated activities: 1.3 bn€ „ Industrial gas pure play „ Good

  3. Slide 3: Air Liquide: 4 business lines generating growth

    Air Liquide: 4 business lines generating growth Industrial Customers 45% 9Bulk & cylinders deliveries 9Serving a wide variety of customers Large Industry 30% 9Large dedicated plants at customer sites 9Air gases and Hydrogen 9Pipeline network Healthcare 16% 9Dedicated medical supply chain (hospitals)

  4. Slide 4: Generating solid and sustained business performance over the long term

    Generating solid and sustained business performance over the long term... 12 000 Revenue (in millions €): EPS(1) (in €): 10 000 9 8 8 000 7 +9.2% CAGR over 30 years(2) 6 +10.3% CAGR over 30 years(2) 6 000 5 4 4 000 3 2 000 2 1 0 0 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001

  5. Slide 5: Reflected in shareholder returns

    … reflected in shareholder returns. Cash flow (in millions €): Dividends(1) (in € per share): 2 000 4 1 800 1 600 +10.6% CAGR over 30 years(2) +9.8% CAGR over 30 years(2) 3 1 400 1 200 1 000 2 800 600 1 400 200 0 0 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 1975

  6. Slide 6: Air Liquide is well positioned to capture growth

    Air Liquide is well positioned to capture growth 2005 Gas & Services revenue Americas Asia Europe 2.5 bn€ 1.6 bn€ 4.8 bn€ 7% 6% 7% 23% 41% 32% 46% 3% 47% 45% 16% 27% Large Industries Electronics Industrial Customers Healthcare 6 • * on a comparable basis Cheuvreux, Paris, September 28th 2006

  7. Slide 7: Strategic mix: base, innovation, new territories

    Strategic mix: base, innovation, new territories 20% of the market growing >10% /year Sophisticated needs Hydrogen Gas conversion Refinery optimization economy (GTL) Middle East Oil sands Coal to chemical Coal to liquid Clean coal IGCC China Korea-Taiwan Optimize and strengthen bases East Europe Pen

  8. Slide 8: Our ambition is to grow in Large Industries

    Our ambition is to grow in Large Industries… Large Industries Market growth „ Basin strategy to provide capital efficient solutions „ Energy „ Investment opportunities in all major geographies +4 bn€ (2025) and in main markets (steel, chemicals, oil & gas) „ Meet and anticipate environmental needs (

  9. Slide 9: Refinery hydrogen will grow well beyond clean fuels

    Example: Refinery hydrogen will grow well beyond clean fuels Worldwide hydrogen investment drivers 2006-2011 14 Relative weight* 12 10 ≈8 MM Nm3/hr 8 (> 80 x) 6 4 2 0 Fuel Regulations Refinery Heavier Replacement Total demand growth optimization crude oil of old Requirement SMRs *Relative weight dep

  10. Slide 10: Leveraging our position on all dimensions of the Energy triangle

    … leveraging our position on all dimensions of the Energy triangle Refineries: DLow sulfur C DDifferent crude slates DAsset replacement Oil & Gas DIGCC Coal Carbon-free DClean coal DCoal to liquid DCoal to chemical DFuel cell DGas to liquid DHydrogen economy DCO2 sequestration 10 Cheuvreux, Paris, S

  11. Slide 11: To grow in Industrial Customers

    … to grow in Industrial Customers… Industrial Customers Market growth +7 bn€ (2012) „ Increase capacity where required (e.g. Asia) Renovation Innovation „ Restructuring and renovation in Europe +2.5% CAGR +5.0% CAGR „ Roll out of innovations & services in all geographies: „ Technology & research „ M

  12. Slide 12: To grow in Healthcare and Electronics business lines

    … to grow in Healthcare and Electronics business lines… Healthcare Market growth +4 bn€ (2010) „ High growth segments: sleep apnea, therapeutic gases „ Create dedicated medical supply chain and organization „ Consolidation of industry Electronics Market growth +3 bn€ (2010) „ Adapt business model to

  13. Slide 13: Open new markets in New Territories

    Open new markets in New Territories „ 6 bn€ out of 40 bn€ worldwide gas market DGrowing >+10% PA DInfrastructure investments 13 Cheuvreux, Paris, September 28th 2006

  14. Slide 14: Middle East Market

    Middle East Market „ Attractive Market due to hydrocarbons „ Investment reforms since 2000 have opened the market „ Accompany major international customers investing in the region with local partners : DDow Chemical DShell DTotal DExxon Mobil 14 Cheuvreux, Paris, September 28th 2006

  15. Slide 15: Air Liquide's Approach in the Middle East

    Air Liquide’s Approach in the Middle East Shuaiba Mesaieed Sohar ¾ Presence with high quality local partners in : Qatar Kuwait Oman ¾ ASU linked to pipeline network ¾ Proving the over the fence solution (15 to 20 year contracts) ¾ Positioning ourselves for the long term 15 Cheuvreux, Paris, Septembe

  16. Slide 16: Invest in promising segments, aligned with strategic market segmentation

    Invest in promising segments, aligned with strategic market segmentation Investment decisions Contribution to revenue growth Gas & Services Gas & Services €m 1200 1,046 1,085 25% 60% 30% 600 45% 0 2004 excl. 2005 Messer Base Innovation New territories 16 Cheuvreux, Paris, September 28th 2006

  17. Slide 17: By leveraging our strengths

    …by leveraging our strengths Portfolio of large investment projects > 2 bn€ Base New Territories Innovation 15% 45% 2 bn€ 2 bn€ 2 bn€ 40% „ Segmentation „ Increase R&D „ Take early positions „ Efficiency „ Hydrogen expansion „ Accelerate HR „ Renovation development „ Advanced materials „ Investments

  18. Slide 18: Investment discipline leads to strong return on capital employed

    … and ensure investment discipline which leads to strong return on capital employed ROCE French GAAP ROCE IFRS 11.7% 12% 11% 10% 9% 8% 7% 0% 6% 1999 2000 2001 2002 2003 2004 2005 Medium term objective 18 Cheuvreux, Paris, September 28th 2006

  19. Slide 19: Air Liquide: Growing the market

    Air Liquide: Growing the market. „ New opportunities exist in the market „ Air Liquide has the required investment capacity, presence, and technology to seize these opportunities „ Air Liquide continues to deliver growth 19 Cheuvreux, Paris, September 28th 2006

  20. Slide 20: Recent growth track record

    Recent growth track record Large Industries Industrial Customers +14,4% 6% 15% +5,3% +4,0% 4% 10% +8,4% +3,2% +3,2% +3,3% +6,9% +7,3% +6,3% +2,4% +5,5% 5% 2% 0% 0% Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Medium term objectives Electronics Healt

  21. Slide 21: Developing the Industrial Gas Market

    Developing the Industrial Gas Market John Glen, Group Finance Director Cheuvreux, Paris, September 28th, 2006

Air Liquide — Cheuvreux conference, Paris 2006 on 6ix