Air Liquide SA · EURONEXT:AI
Air Liquide SA — FY2011 Earnings Presentation
36 slides from Air Liquide SA's earnings presentation, April 2012
Slide 1: 2011 Results: Solid full year performance
2011 Results Solid full year performance ALMA perspective April 2012 l Full year 2011 Solid full year performance Q4 marked by customer cautiousness Strong Full year sales Further margin improvement Net profit in line with guidance Confirmed investment momentum ALMA perspective Robus
Slide 2: Two years of strong growth
Two years of strong growth Group sales 2009-2011 CAGR In €bn +9.9% 15,0 14.5 Gas & Services +12.2% 13.5 12,5 12.0 Engineering -15.8% & Construction 10,0 Other activities +7.5% 7,5 5,0 2009 2010 2011 Growth figures are compound annual published growth. 3 April 2012 Air Liquide, world leader in
Slide 3: Generating regular growth in net profit
… generating regular growth in net profit Net profit (Group Share): +9.4% In €m 1,535 1500 +11.7% CAGR over 2 years 1250 Strong positive leverage 1000 750 500 2009 2010 2011 In € Dividend: +6.4% 2.50 (1) 2,5 2 +8.9% CAGR over 2 years(2) 1,5 Pay-out ratio 47.5% 1 Free shares : 1 for 10 held
Slide 4: Robust 2011 results
Robust 2011 results 11/10 11/10 comparable In €m 2011 change change change(1) Group revenue 14,457 +7.2% +6.8% Gas & Service revenue 12,839 +8.0% +7.5% Operating Income 2,409 +7.0% recurring Net profit 1,535 +9.4% (Group share) Dividend per share (2) (in €) 2.50 +6.4% Excl. Forex & Scope Net Debt at
Slide 5: Lower Q4 year on year progression
Lower Q4 year on year progression G&S comparable growth(1) 2008 2009 2010 2011 +11.3%+11.4% 12 +10.7%+11.0% +9.7% 10 +7.9% +8.3% +7.7% 8 6 4 +1.9% 2 0 -2 -4 -4.2% -4.6% -6 -5.1% -5.2% Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 (1) excluding forex, natural gas and s
Slide 6: Large Industries and Electronics growth
…and notably in Large Industries and Electronics Industrial Merchant Large industries 10% +21% +22% +8% 20% +17% +17% 8% +5% +5% +14% +13% 15% +11% 5% +4% +3% +2% +2% 10% +2% 3% 5% +2% 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 10 10 10 10 11 11 11 11 10 10 10 10 11 11 11 11 39% Q4 35% 20
Slide 7: Overall robust growth in 2011
Overall robust growth in 2011 G&S growth by geography G&S growth by business line Comparable growth(1) Comparable growth(1) Europe +4.5% Industrial +2.9% €6,585m Merchant Americas +9.0% Large +11.7% €2,859m Industries Asia Pacific +12.5% Healthcare +7.4% €3,083m ME & Africa +10.9% Electronics +11.9%
Slide 8: Engineering & Construction picking up
Engineering & Construction picking up Third party E&C sales E&C order intake In €m 751 705 In €m 300 1500 258 250 1250 203 1,010 200 185 186 177 1000 156 158 Q4 150 134 750 100 500 50 250 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 10 10 10 10 11 11 11 11 Sales increase in Q4 due to project €
Slide 9: Full year 2011 Solid performance
Full year 2011 Solid performance Activity Performance Investments and net debt 17 April 2012 Air Liquide, world leader in gases for industry, health and the environment Further improvement in Group operating margin Change In €m 2009 2010 2011 11 vs 10 Revenue 11,976 13,488 14,457 +7.2% Purchas
Slide 10: Further improvement in Group operating margin
G&S margin helped by efficiencies G&S OIR margin 19.2% 19.1% (1) in €m +253 2,421 2 400 +104 0 +37 <1> 2,281 2 200 +68 G&S G&S <284> 2 000 1 800 0 OIR Volume Energy Cost Price Efficiencies Forex OIR mix effect increase excl. and 2010 energy Others 2011 OIR = Operating Income Recurring (1) Excl. Natu
Slide 11: Full year 2011 Solid performance
Full year 2011 Solid performance Activity Performance Investments and net debt 21 April 2012 Air Liquide, world leader in gases for industry, health and the environment Confirmed Investment momentum 12-month portfolio Investment of opportunities decisions Net capex(1) Start-ups (2) In €bn In €
Slide 12: Net debt stable excluding Forex and Scope
Net debt stable excluding Forex and Scope Net debt In €m <196> <5,248> <5,039> + 2,728 <763> +209 <1,676> Gearing ratio Gearing ratio 55% 53% <302> Net Debt Cash flow WCR Net Dividends Forex(2) Net Debt, Dec 31, 2010 + others Investments(1) net of capital + scope Dec 31, 2011 increases + IFRS (1) In
Slide 13: ALMA Perspective
Full year 2011 ALMA Perspective Robustness of the development model Growth and efficiencies ROCE Long term trends Corporate Responsibility commitment 25 April 2012 Air Liquide, world leader in gases for industry, health and the environment 2015 objectives Sales growth Efficiency +8 to +10% €
Slide 14: 2015 objectives
Growth Group Sales and CAGR In €bn + 10% 15,0 14.5 + 8% 13.5 13.1 12,5 11.8 12.0 10.9 10.4 10,0 7,5 5,0 0 2005 2006 2007 2008 2009 2010 2011 27 April 2012 Air Liquide, world leader in gases for industry, health and the environment Growth: fueled by investments G&S Cumulated 2010 and 2011 capex Europ
Slide 15: Growth: fueled by investments
Extend our markets: site take overs Air gases Hyco, Syngas Steam and others Site takeovers achieved: 6 Opportunities in the portfolio: 10 Additional yearly sales: €200m 29 April 2012 Air Liquide, world leader in gases for industry, health and the environment Extend our markets: further initiatives N
Slide 16: Extend our markets: site take overs
Long term trends re-confirmed Energy + Environment Developing Economies “ $38 trillion of High Tech Health investment to “ Non-OECD meet projected countries “ Chronic “ Spending on energy demand.” account for 90% diseases consumer of population become the technology growth...” dominant devices will
Slide 17: Long term trends re-confirmed
Efficiencies: visible cost decrease Ex: G&S non operating costs Ex: Healthcare transport Costs in % of sales 9,5% costs (Iberia) 9,0% Costs in % of sales 8% 8,5% Efficiency 8,0% 7% breakdown 7,5% 7,0% 6% '07 '08 '09 '10 '11 Ex: Electronics molecules 5% '07 '08 '09 '10 '11 procurement /gas sales Cost
Slide 18: Efficiencies: visible cost decrease
Sustained long-term return on investments Operating income vs. capital employed(1) Base 100 220 Operating Profitable growth income 200 recurring 180 Capital Regaining momentum employed 160 140 120 100 80 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (1) Shareholders equity + minority intere
Slide 19: Sustained long-term return on investments
Standard plant program deployment 90 Air gas standard plants since 2006 Savings confirmation -35% capex O2 production N2 production -10% opex Liquid production -40% time to market 37 April 2012 Air Liquide, world leader in gases for industry, health and the environment From Sustainable develop
Slide 20: Standard plant program deployment
Corporate Social Responsibility towards… Stakeholders Fields of action Shareholders Improve the Environmental footprint Customers & Patients Enhance business practices and governance Employees Innovate relentlessly Communities 39 April 2012 Air Liquide, world leader in gases for industry, health and
Slide 21: From Sustainable development to Corporate Social Responsibility
Our commitment to Employees Be a great place to develop one’s potential, providing employees with a safe, performing and respectful work environment Lost time accident frequency (1) 250 Number Frequency 5,0 4,5 200 4,0 150 3,5 3,0 100 2,5 2,0 50 1,5 0 1,0 95 96 97 98 99 2000 01 02 03 04 05 06 07 0
Slide 22: Our commitment to Shareholders
Our commitment to Innovate relentlessly Innovate relentlessly in order to bring sustainable and cost effective solutions to society, leveraging partnerships with customers, suppliers, academics and communities 43 April 2012 Air Liquide, world leader in gases for industry, health and the environmen
Slide 23: Commitment to Employees and Environmental footprint
Global economic growth estimates for 2012 Industrial production growth estimates for 2012 in Air Liquide countries < +2% > +6% +2 to +6% Growth estimates excluding inflation. Sources: Rexecode and Air Liquide estimates at December 31, 2011. 45 April 2012 Air Liquide, world leader in gases for indust
Slide 24: Innovate relentlessly
Appendix Q4 2011 activity 47 April 2012 Air Liquide, world leader in gases for industry, health and the environment Europe in Q4 Industrial Merchant Q4 Gas & Services sales: € 1,667m Dynamic Eastern Europe Electronics Positive pricing 2% Industrial Merchant Strong cost inflation Healthcare 2
Slide 25: 2012 Outlook
Americas in Q4 Industrial Merchant Q4 Gas & Services sales: € 722m New capacities in Canada Electronics Dynamic Latin America Healthcare 7% Positive pricing 9% 11% Industrial Merchant 48% Large Industries 34% Strong chemical demand Large Industries Customer maintenance outages Q4 11/10
Slide 26: Global economic growth estimates for 2012
Appendix Full year 2011 51 April 2012 Air Liquide, world leader in gases for industry, health and the environment Operating margin – natural gas effect Group, in €m 2010 2011 Revenue 13,488 14,457 Natural gas effect +136 Operating income recurring 2,252 2,409 Operating margin 16.7% 16.7% Operating m
Slide 27: Q4 2011 activity: Europe
Operating margin (OIR/Revenue) H1 08 H2 08 2008 2008 Group 14.9% 14.8% 14.9% Gas & Services 17.5% 17.8% 17.7% H1 09 H2 09 2009 2009 Group 15.0% 17.6% 16.3% Gas & Services 18.1% 21.0% 19.6% H1 10 H2 10 2010 2010 Group 16.6% 16.8% 16.7% Gas & Services 19.2% 19.2% 19.2% H1 11 H2 11 2011 2011 Group 16.7
Slide 28: Americas in Q4 and Asia in Q4
Industrial Merchant pricing 2011 Europe + 0.1% Americas + 4.0% Asia-Pacific + 0.9% Middle-East and Africa + 3.3% Total Industrial Merchant + 1.5% 55 April 2012 Air Liquide, world leader in gases for industry, health and the environment Gas & Services capex by geography G&S 2011 Investments(1) G&S In
Slide 29: Full year 2011 Appendix: Operating margin natural gas effect
Engineering & Construction In €m 2010 2011 Consolidated revenues 751 705 OIR (1) margin 9.0% 10.6% Total order intake 1,228 1,010 Total orders-in-hand 4,100 3,200 ASU 1% Total Orders-in-hands 10% HyCO breakdown 16% at December 31, 2011 Traditional energy 56% Alternative energy 17% Renewable energy (
Slide 30: Operating margin and 2011 margin by region
Appendix ALMA 2015 reminder 59 April 2012 Air Liquide, world leader in gases for industry, health and the environment Growth drivers confirmed Estimated market Air Liquide Growth drivers Market growth 2010-2015 activity Developing Industrial gases Economies Medical gases +13 – 14% CAGR Homecare Heal
Slide 31: Industrial Merchant pricing; capex by geography
Grow sales of +8 to 10% While Global Market Grows + 7 to +8%, 1-2 015 201 Air Liquide Growth +8 to +10%* Industrial Merchant Large Industries +6 to 9% +9 to 11% 40% 34% Electronics 10% 16% Healthcare +8 to 10% Air Liquide +7 to 11% 2010 revenue CAGR (compound annual growth rate) estimates for Air Li
Slide 32: Engineering & Construction; Financing structure
Reminder Air Liquide in brief 63 April 2012 Air Liquide, world leader in gases for industry, health and the environment Air Liquide, The world leader in gases for… Group 2011 sales: €14.5 bn Industry Gas & Services 89% Health Other Engineering & activities Construction 6% 5% The Environment 2011 N
Slide 33: ALMA 2015 reminder: Growth drivers confirmed
Diversified end markets Industrial Merchant Large Industries Technology and research Others 3% 11% Cogeneration: steam + electricity Automotive and 16% manufacturing 29% Materials and Air gases energy 47% € 4,892 M € 4,585 M 30% Craftsmen and Hydrogen and Distributors carbon monoxide 15% 34% Food an
Slide 34: Grow sales of +8 to 10%
Air Liquide, leader of the industry 2011 Revenues (€bn) 2010 G&S Market share Air Liquide 12.8 Air Liquide 22% Linde 11.1 Others 34% Praxair 7.6 Linde Air Products 7.0 19% Air Products 12% Praxair Gas and Services Other activities 13% Fiscal year 2011 except for Linde. Source: Companies Source: Air
Slide 35: Air Liquide in brief
Investment cycle of a Large Industries contract Opportunities Commissioning under discussion Signature Construction and revenue 12-month portfolio Investment Start-ups of opportunities decisions Net capex(1) and ramp-ups(2) Investment amount Revenue amount (1) 100 100 100 50 50 50 50 40 30 2011 2010
Slide 36: Diversified end markets; global presence
For further information, please contact: Investor Relations Virginia Jeanson + 33 (0)1 40 62 57 37 Annie Fournier + 33 (0)1 40 62 57 18 Bastien Maurice + 33 (0)1 40 62 59 38 Martine Fitoussi + 33 (0)1 40 62 51 50 (Coordinator) www.airliquide.com Follow us on Twitter @AirLiquideGroup Corporat