Air Liquide SA · EURONEXT:AI
Air Liquide SA — Non-Deal Roadshow (June 2008)
40 slides from Air Liquide SA's roadshow presentation, June 2008
Slide 1: Strengthened growth momentum
Strengthened growth momentum Benoit Potier, Chief Executive Officer Pierre Dufour, Senior Executive Vice-President US Roadshow, East Coast June 2-4, 2008
Slide 2: Agenda
Strengthened growth momentum Agenda Short introduction to Air Liquide A successful 2007 and a dynamic first quarter 2008 Be the recognized industry leader US Roadshow, East Coast – June 2-4, 2008 2
Slide 3: Short introduction to Air Liquide
Short introduction to Air Liquide
Slide 4: Presence in 75 countries, 2007 Gas & Services revenue €10bn
Presence in 75 countries… 2007 Gas & Services revenue: €10 bn 2% Europe 18% Americas Asia-Pacific 55% Middle East & 25% Africa US Roadshow, East Coast – June 2-4, 2008 4
Slide 5: Gas and services: 85% of sales
Gas and services: 85% of sales Industrial Merchant (44% of G&S) Bulk & cylinders deliveries Serving a wide variety of customers Large Industries (30% of G&S) Air gases and Cogen Large plants at customer sites with 15-year contracts To serve steel, chemicals and refining Healthcare (16% of
Slide 6: Business mix by region
Business mix by region 2007 Gas & Services revenue: €10bn Europe*: Americas: Asia-Pacific: €5.6bn €2.5bn €1.9bn 4% 6% 8% 32% 23% 44% 43% 46% 29% 40% 5% 20% Industrial Merchant Large Industries Healthcare Electronics * Including Middle-East & Africa US Roadshow, East Coast – June 2-4, 2008 6
Slide 7: Generating solid and sustained performance
Generating solid and sustained performance 14 000 Sales (in million €): EPS(1) (in €): 5 12 000 10 000 4 8 000 +8.4% CAGR over 30 years(2) +9.1% CAGR over 30 years(2) 3 6 000 2 4 000 1 2 000 0 0 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 1977 1979 1981 1983 1985
Slide 8: A successful 2007 and a dynamic first quarter 2008
A successful 2007 and a dynamic first quarter 2008
Slide 9: Strong market demand
Strong market demand Booming emerging economies Increasing demand for steel & chemicals High growth markets: solar cells, energy and refining Continued strong demand in homecare & hygiene Strong 2nd half 2007 semiconductor & flat panel demand, slowdown expected in 2008 Buoyant engineerin
Slide 10: A successful 2007
A successful 2007 Growth 07/06 Growth 07/06 In €m 2007 as published comparable* Group revenue 11 801 +7.8% +7.6% Gas & Services revenue 9 999 +3.8% +7.1% Gas & Services -- 18.1% +50 bps OIR margin Net profit 1 123 +12.1% -- More than Total capital expenditure 2 668 doubled ROCE 12.3% +40 bps -- * ex
Slide 11: Optimized balance sheet
Optimized balance sheet In €m 2006 2007 07/06 Funds provided by operations 1 889 2 054 +8.7% WCR (109) 94 Others (13) (46) Net cash from operating activities 1 767 2 102 +19.0% Cash invested into business: More than (capex + acquisitions) (1 201) (2 668) doubled Cash back to shareholders: (distribut
Slide 12: Strategic positioning in 2007
Strategic positioning in 2007 Ahead in €10bn capex program Unique Asian springboard Undisputed homecare leadership in Europe Adapted technology portfolio for Energy developments World Business Lines driving change US Roadshow, East Coast – June 2-4, 2008 12
Slide 13: A dynamic first quarter 2008
A dynamic first quarter 2008 Strong demand in steel, chemicals, energy Continued robust manufacturing environment Good progress in ALMA implementation Dynamic Gas & Services growth across key markets Accelerated H2 and O2 demand boosting LI growth in all regions Sustained level of invest
Slide 14: Q1 2008 published growth: +10.8%
Q1 2008 published growth: +10.8% In €M Q1 08 Q1 08/07 Q1 08/07 revenue as published comparable* Group 3 091 +10.8% +8.5% Gas & Services 2 649 +8.0% +9.1% E&C 189 +119.9% +12.5% Other Activities 253 +0.2% +1.5% * comparable: excluding impact of currency, natural gas and Lurgi acquisition Continued
Slide 15: Growth dynamic maintained at high level
Growth dynamic maintained at high level Gas & Services Comparable growth* 10% +9.1% +9.1% +7.9% +6.3% +5.3% 5% 0% Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Comparable growth: excluding impact of currency and natural gas US Roadshow, East Coast – June 2-4, 2008 15
Slide 16: All business lines performed well
All business lines performed well Industrial Merchant Large Industries 10% 15% 6.5% 10.6% 10.6% 5.4% 10% 5.1% 5% 4.3% 4.3% 5.9% 6.4% 5.5% 5% 0% 0% Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 mid-term revenue objectives Healthcare Electronics 15% 28% 26.2% 11.1% 10
Slide 17: Be the recognized industry leader
Be the recognized industry leader
Slide 18: Gas markets offer strong growth potential
Gas markets* offer strong growth potential +8% Middle East & Africa Eastern Industrial Merchant Europe +5% pa >+10% p.a North America South America Healthcare +7% pa China 50% Electronics Asia-Pacific +5% p.a +8% pa excl. Japan Western Large Industries Europe +12% pa Japan Share of expected Indu
Slide 19: Mid-term growth objectives 2007 to 2011
Mid-term growth objectives 2007 to 2011 +8 to 10% average growth per year at constant FX Average annual growth Industrial Growth Growth: +4 to 6% Merchant €10bn in investments +8 to 15% Large Industries Profitability Profitability: 11 to 12% +8 to 12% Healthcare of ROCE +8 to 12% Electronics Grou
Slide 20: Ambition: be the recognized industry leader
Ambition: be the recognized industry leader Leading market shares in key markets First to develop new markets and geographies Providing competitive, innovative and environmental solutions based on new technologies Sustained superior financial performance with sustained growth in net earnings
Slide 21: Four strategic levers to achieve ambition
Four strategic levers to achieve ambition Build leadership Drive innovation positions Be the recognized industry leader Deliver efficiency Develop talents US Roadshow, East Coast – June 2-4, 2008 21
Slide 22: Deliver and transform
Deliver and transform Direct ROCE: Growth Performance 11-12% +8 to 10% impact Asset/Cash Cost Key projects productivity productivity Adapting our business models Managing our human resources Support Cultural transformation Communication US Roadshow, East Coast – June 2-4, 2008 22 22
Slide 23: WBLs approach to cost efficiency
WBLs approach to cost efficiency Large Industries – Energy management Cost efficiency Procurement through global platforms project Plant automation / network optimization / sourcing arbitrage ROCE: Energy efficient investments 11-12% €600m cost Industrial Merchant – Supply chain improvement r
Slide 24: Deliver efficiency
Deliver efficiency Operating income recurring / Sales 16% 15.2% 15% 14% 13% 13.4% EOS OPAL 12% €250m €300m €400m €600m 0% 11% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 IFRS US Roadshow, East Coast – June 2-4, 2008 24 24
Slide 25: Reducing capital intensity
Reducing capital intensity Capital saving project ROCE: Design-to-cost - to reduce capital 11-12% Capital intensity, Large Industries and productivity In €bn Industrial Merchant improvement 10 Expected Capex Asset management - better asset 2007 - 2011 productivity in Industrial Merchant Existing
Slide 26: Industrial investment cycle
Industrial Investment cycle “ Negotiation Signature Construction Commissioning Sales ” Portfolio Decisions Capex Start-ups Ramp-ups 1 - 2 years 1 year 2 - 3 years 2 - 5 years 100 Revenue 50 50 50 40 30 2006 2007 2007 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 5 - 7 year
Slide 27: Accelerated start-ups & ramp-ups from 2008
Accelerated start-ups & ramp-ups from 2008 Portfolio Decisions Capex Start-ups Ramp-ups 2007 major start-ups 2008 major start-ups ASU in Russia Hydrogen in Antwerp Key projects SMR in Italy Cogen in Rotterdam to drive Growth Oxygen in China Growth In Electronics in China + 8-10% Accelera
Slide 28: 2007 total capital expenditure: €2.7bn
2007 total capital expenditure: €2.7bn Portfolio Decisions Capex Start-ups Ramp-ups Industrial €1.4bn up +20%, 11.5% of sales Key projects to drive Growth Breakdown by geography Growth + 8-10% Emerging economies 31% Acquisitions €1.3bn: Mature economies Asian platform 69% Consolidation in Home
Slide 29: Record €2.1bn industrial investment decisions
Record €2.1 bn industrial investment decisions Portfolio Decisions Capex Start-ups Ramp-ups up +42% vs 2006, up +82% vs 2005 Key projects Investment decisions in € bn 2.1 to drive Growth 1.5 Growth + 8-10% 1.1 2005 2006 2007 Breakdown by geography Emerging economies 48% Mature 52% economies Ahead
Slide 30: Portfolio doubled to >€3bn
Portfolio doubled to >€3bn Portfolio Decisions Capex Start-ups Ramp-ups Major drivers Emerging markets Key projects to drive Growth Energy, with emergence of O2 gasification and oxy-combustion projects Growth + 8-10% By technology x2 48% Steel 52% Chemicals Air Gasification Average portfolio A
Slide 31: Five global trends driving demand
Five global trends driving demand Energy Emerging economies Health High tech Environment US Roadshow, East Coast – June 2-4, 2008 31
Slide 32: Outlook 2008
na" LIQUIDE Outlook 2008
Slide 33: With solid trends in end-user markets
With solid trends in end-user markets 2007 2008 Steel Sustained demand Chemicals High capacity utilization but uncertainty Oil and gas Heavier crude price and increasing standards Electronics Strong investment in Asia Industrial Merchant Americas No sign of slowdown yet Japan & Australia Modest grow
Slide 34: 2008 guidance
2008 guidance “We maintain our guidance of double digit growth in net profit at constant exchange rates.” US Roadshow, East Coast – June 2-4, 2008 34
Slide 35: Appendices
mar LIQUIDE Appendices
Slide 36: Q1 2008, Europe: Large Industries driving growth
Q1 2008, Europe: Large Industries driving growth Industrial Merchant: Gas & Services revenue: €1 481M Q1 growth 08/07* Good volumes in bulk & cylinders Europe Strong metal fabrication, +8.3% pharmaceuticals and photovoltaic Industrial Large Industries: Merchant +3.2% Strong underlying dema
Slide 37: Q1 2008, Americas: robust activity level
Q1 2008, Americas: robust activity level Industrial Merchant: Gas & Services revenue: €635M Good volume and favorable pricing Q1 growth 08/07* in the US Lower activity in Canada Americas +6.5% Sustained growth in South America Industrial Merchant +8.7% Large Industries: Large Industries +1
Slide 38: Q1 2008, Asia: double digit growth in key markets
Q1 2008, Asia: double digit growth in key markets Gas & Services revenue: €491M Industrial Merchant: Q1 growth 08/07* Strong bulk volumes in emerging Asia Asia-Pacific +15.3% Electronics: Industrial Merchant +10.3% Carrier gases: start-ups & ramp-ups in South Korea, Japan and China Electronics
Slide 39: ALMA: growth developments in Q1 2008
ALMA: growth developments in Q1 2008 Hydrogen: Mid-term objectives Start-up in Antwerp Bio fuels contract in Singapore on pipeline network Emerging Energy Coal gasification: sale of 2 ASU (3,000t/d each) for CTC markets & Energy Reduction of CO2 emissions: increased participation in indu
Slide 40: Investor relations contacts
Strengthened growth momentum If you need more information, please contact the IR Team: Virginia Jeanson, [email protected], +33 1 4062 5737 Aude Rodriguez, [email protected], +33 1 4062 5718 Team coordinator: Christelle Devillers, [email protected], +33 1