Air Liquide SA · EURONEXT:AI
Air Liquide SA — Q1 2011 Earnings Presentation
31 slides from Air Liquide SA's earnings presentation, Apr 26, 2011
Slide 1: 2011 First quarter activity
2011 First quarter activity Pierre Dufour, Senior Executive Vice-President Jean-Pierre Duprieu, Senior Vice-President Paris, April 26, 2011 Fabienne Lecorvaisier, Chief Financial Officer
Slide 2: 2011 First Quarter activity: Strong growth
2011 First Quarter activity Strong growth High activity level in all regions Very limited impact from recent events in Japan and Africa & Middle-East Activity and Performance in line with ALMA 2015 objectives High level of investment decisions Air Liquide, the world leader in gases for industr
Slide 3: Strong growth
Strong growth Sales Q1 11/10 Q1 11/10 In €m Q1 11 as published comparable* Gas & Services 3,185 + 15.4 % + 11.4 % Engineering 134 - 27.9 % - 29.2 % & Construction Other Activities 224 + 8.5 % + 7.8 % Group Total 3,543 + 12.4 % + 8.8 % * Comparable: excluding forex and natural gas Air Liquide, the wo
Slide 4: Continued quarterly improvement
Continued quarterly improvement Gas & Services comparable Growth* 2008 2009 2010 2011 12% + 11.4% + 10.7% + 11.0% + 11.3% 10% + 7.9% + 8.3% 8% 6% 4% 2% 0% -2% -4% - 4.2% - 4.6% -6% - 5.1% - 5.2% Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 * Comparable: excluding f
Slide 5: All volumes above pre-crisis reference
All volumes above pre-crisis reference Base 100, average 2008 Large Industries Gas volumes Cylinder and Bulk volumes 130 130 Hydrogen 120 120 O2 + N2 Bulk 110 110 Oxygen 100 100 90 90 O2 Cylinders 80 80 70 70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 08 08 08 08 0
Slide 6: High level of activity
High level of activity Quarterly G&S activity index base 100, average 2008* 115 2009 2010 2011 110 105 Average 2008 100 95 90 85 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 * Comparable revenue, adjusted for the number of days per month Air Liquide, the world leader in gases for industry,
Slide 7: Differentiated growth rates
Differentiated growth rates G&S comparable* revenue growth (Q1 2011 / 2010) + 20 % + 10 % +7% +6 % + 43 % + 10 % + 14 % Advanced Economies Developing Economies +8% + 30 % * Excluding forex and natural gas Air Liquide, the world leader in gases for industry, health and the environment Q1 2011 Revenue
Slide 8: Focus: Japan
Focus: Japan Japan G&S revenue € 289m +6%* in Q1 2011 North East Tohoku Fukushima Tokyo Epicenter Kanto Annual sales Nagoya Kobe Osaka Affected regions Production sites * Comparable growth, excluding forex and natural gas Air Liquide, the world leader in gases for industry, health and the environmen
Slide 9: Focus: Africa & Middle-East
Focus: Africa & Middle-East G&S annual sales Affected regions Unconsolidated sales Syria Morocco Egypt Tunisia United Arab Emirates Saudi Arabia Ivory Coast Q1 2011 Africa-ME G&S sales € 70m +10%* in Q1 2011 Southern Africa * Comparable growth, excluding forex and natural gas Air Liquide, the world
Slide 10: Solid progression in all regions
Solid progression in all regions Sales Q1 2011 Comparable growth* Q1 2011/2010 G&S Start-ups in Italy and France Europe +7 % IM underlying trend slightly positive and price stabilization € 1,647 m 2 Homecare acquisitions and Hygiene back to regular growth Louisiana site takeover effect, stro
Slide 11: Gas & Services Growth: +11.4%
Gas & Services Growth: + 11.4% Industrial Merchant Large Industries +21% +22% +8% 8% 20% +17% +5% +5% +4% 15% +14% +13% 3% +2% 10% -2% 5% +2% +1% -7% 0% -7% -8% -9% -5% -3% -4% -11% -12% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 2011 2009 2009 2009 2009 2010 2010 2010 2010 2011 2009 2
Slide 12: Engineering & Construction recovery expected in 2011
Engineering & Construction recovery expected in 2011 Order intake and Activity ~ 18 months time lag In M€ 450 400 350 300 250 200 150 282 247 258 100 208 203 185 186 177 134 50 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Order intake Third-party sales Internal sales (4-
Slide 13: Other Activities contribution
Other Activities contribution Welding-Cutting Specialty Chemicals and moderate recovery Diving growth 20% 20% +19% +15% +12% +10% +10% +11% +9% 10% +7% 10% +8% +6% +4% +4% +3% +3% +1% 0% 0% -2% -1% -1% -10% -6% -10% -7% -8% -8% -20% -20% -30% -27% -30% -29% -34%-35% -40% -40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 14: Activity and Performance in line with ALMA 2015 objectives
2011 First Quarter Activity Activity and Performance in line with ALMA 2015 objectives Pierre Dufour, Senior Executive Vice-President
Slide 15: 2015 objectives
2015 objectives Sales Growth Efficiencies +8 to +10% > € 200 M in a normal environment per year, on average ROCE Engagement in 12 - 13% Responsibility objectives range in the period Air Liquide, the world leader in gases for industry, health and the environment Q1 2011 Revenue – April 26, 2011 15
Slide 16: On-going investment momentum
On-going investment momentum Developing Economies Advanced Economies 12-month Portfolio of Net Capex* Start-ups** opportunities In €bn In €M Units 43 444 24 400 380 3.9 6 3.7 3.7 0.7 0.9 0.8 15 6 18 3.0 3.0 2.9 9 Dec-09 Dec-10 Mar-11 Q1 09 Q1 10 Q1 11 2009 2010 2011e 2012e 3 start-ups in Q1 2011 * I
Slide 17: High level of investment decisions
High level of investment decisions Major Q1 2011 Decisions Mexico and Russia Investment Decisions* Steel In €m Saudi Arabia 494 Oil & Gas and Liquid capacity 350 China Gasification 168 Electronics Semi-conductors and photovoltaic Homecare Q1 09 Q1 10 Q1 11 France and Germany Large Industri
Slide 18: Access to new markets
Access to new markets Recent market entries* G&S sales in Developing Economies Russia 20% 20% 19% Mexico Turkey 15% 11% Saudi Arabia 10% 8% Central America 5% 4% 0% 1990 2000 2008 2010 Q1 2011 Q1 2011 Air Liquide New market size: € 2.5 bn Growth**: +30% * since 2008 ** G&S, Q1 2011/2010 comparable g
Slide 19: Energy-Environment markets
Energy-Environment markets World energy production by origin 2030 estimates N2 O2 ESG* H2 H2 Oil N2 N2 Gas Coal CO2 H2 O2 Sources: IEA Key world energy statistics 2010 * Electronic Specialty Gases Renewable Nuclear Air Liquide, the world leader in gases for industry, health and the environment Q1 20
Slide 20: Steady Performance and Solid balance sheet
Steady Performance and Solid balance sheet Gas & Services sales Efficiencies In €bn In €m 3.2 335 2.8 280 3 300 2.5 2011 Objective: 2 +11% (1) 200 > € 200 M ALMA 2015 ALMA ALMA 1 100 0 0 60 Q1 09 Q1 10 Q1 11 2009 2010 2011 Net capex (2) Net debt In €bn In €bn 2.0 2 5.1 1.7 4.9 5.0 1.4 5 1,5 1.5 1 4
Slide 21: 2011 outlook
2011 outlook Q1 2011 Strong activity Performance in line with ALMA 2015 objectives 2011 outlook maintained Continued steady growth of net profit in 2011 Air Liquide, the world leader in gases for industry, health and the environment Q1 2011 Revenue – April 26, 2011 21
Slide 22: Appendices
mer LIQUIDE Appendices
Slide 23: G&S Q1 2011 revenue growth
G&S Q1 2011 revenue growth In €m + 11.4 % comparable* 3 500 3,185 316 + 13 + 96 3 000 2,760 + 15.4 % 2 500 published growth 2 000 1 500 1 000 0 Q1 2010 Comparable Natural Gas Change Q1 2011 * Excluding forex and natural gas growth* Air Liquide, the world leader in gases for industry, health and the
Slide 24: Europe in Q1: IM Recovery still moderate
Europe in Q1: IM Recovery still moderate 4% Industrial Merchant Q1 Gas & Services sales: 24% 33% Slightly positive trend excluding 1,647 €m internal reorganization 39% Developing economies momentum Average prices stabilized Q1 11/10 Comparable change: + 7.3 %* Large Industries Steady dem
Slide 25: Americas in Q1: momentum in all activities
Americas in Q1: momentum in all activities 8% Industrial Merchant 10% Q1 Gas & Services sales: 46% Positive pricing effect 709 €m 36% Strong growth in Latin America and Canada Cylinder activity recovery Q1 11/10 Comparable change: + 10.5 %* Large Industries + 7.6 % Industrial Merchant St
Slide 26: Asia in Q1: strong growth
Asia in Q1: strong growth Industrial Merchant 28% Q1 Gas & Services sales: 37% Industrial development throughout 759 €m 4% 31% the region New liquid capacities in China Limited impact of events in Japan Q1 11/10 Comparable change: : + 23.6 %* Large Industries + 10.5 % Industrial Merchant
Slide 27: Currency and natural gas impact on G&S revenue
Currency and natural gas impact on G&S revenue Currency In €m Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 €/USD (26) + 30 + 44 + 35 +7 €/CAD + 14 + 25 + 20 + 16 +9 €/JP¥ (7) + 31 + 49 + 44 + 31 Others + 31 + 71 + 79 + 75 + 49 Total Currency Impact + 12 + 157 + 192 + 170 + 96 Average exchange rates Q1 10 Q2 10 Q
Slide 28: Revenue analysis by quarter (1)
Revenue analysis by quarter (1) Sales in €m Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q1 11/10 Q1 11/10 as published comparable* Europe 1,497 1,505 1,555 1,644 1,647 + 10.0 % + 7.3 % Americas 643 703 708 694 709 + 10.2 % + 10.5 % Asia-Pacific 558 655 697 733 759 + 35.9% + 23.6 % Middle-East 62 71 83 77 70 +13.5
Slide 29: Revenue analysis by quarter (2)
Revenue analysis by quarter (2) Sales in €m Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q1 11/10 Q1 11/10 as published comparable* Industrial Merchant 1,106 1,208 1,217 1,222 1,200 + 8.4 % + 4.2 % Large Industries 936 950 1,036 1,097 1,133 + 21.1 % + 17.4 % Electronics 252 293 309 324 343 + 36.1 % + 27.6 % Health
Slide 30: G&S Revenue analysis by quarter (3)
G&S Revenue analysis by quarter (3) Published Comparable* Natural Gas Change Growth Growth Q4 2009 - 9.2 % - 2.8 % - 1.8 % - 4.6 % Q1 2010 + 8.3 % - 0.4 % + 0.4 % + 8.3 % Q2 2010 + 18.6 % + 1.6 % + 6.3 % + 10.7 % Q3 2010 + 21.0 % + 2.4 % + 7.6 % + 11.0 % Q4 2010 + 18.5 % + 0.8 % + 6.4 % + 11.3 % Q1
Slide 31: For further information, please contact
For further information, please contact: Investor Relations 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 Bastien Maurice + 33 (0)1 40 62 59 38 www.airliquide.c