Air Liquide SA · EURONEXT:AI

Air Liquide SA — Q1 2021 Earnings Presentation

32 slides from Air Liquide SA's earnings presentation, Apr 23, 2021

  1. Slide 1: Q1 2021 Activity: All Business Lines back to growth

    Q1 2021 Activity All Business Lines back to growth Paris, April 23, 2021 April 23, 2021 Q1 2021 Activity Bécancour Electrolyzer A world leader in gases, technologies and services for Industry and Health

  2. Slide 2: Agenda

    Agenda ● Q1 2021 key highlights ● ESG commitments reminder ● 2021 Guidance confirmed 2 April 23, 2021 Q1 2021 Activity A world leader in gases, technologies and services for Industry and Health

  3. Slide 3: Q1 2021 Key Highlights

    Q1 2021 Key Highlights • Group sales up +4%, overcoming a challenging environment • Pursued recovery in all regions • All WBLs posting sales growth • Continued focus on performance and solid cash flow • Energy transition and EL driving investment opportunities 3 April 23, 2021 Q1 2021 Activity A worl

  4. Slide 4: Covid-19 Impact in Q1 20, a Read Through for Q1 21

    Covid-19 Impact in Q1 20, a Read Through for Q1 21 Q1 20 impact Slight Slight to medium Medium to high High 4 April 23, 2021 Q1 2021 Activity A world leader in gases, technologies and services for Industry and Health

  5. Slide 5: Strong Group Sales Recovery since Q2 20

    Strong Group Sales Recovery since Q2 20 Comparable sales value (€m) Q1 19 comparable sales value (€m) Group comparable sales growth (%) Group comparable sales value (€m) 5 April 23, 2021 Q1 2021 Activity A world leader in gases, technologies and services for Industry and Health

  6. Slide 6: Group Sales up +4%

    Group Sales up +4% Q1 21/20 Q1 21/20 Sales in €m Q1 20 Q1 21 As published Comparable Gas & Services 5,191 5,103 -1.7% +2.8% Engineering & Construction 52 76 +44.5% +48.5% Global Markets & Technologies 127 155 +22.0% +25.7% Group Total 5,370 5,334 -0.7% +3.8% Impacts on Q1 Group Sales: ▪ -5.1% FX ▪ +

  7. Slide 7: Pursued Recovery in All Regions

    Pursued Recovery in All Regions 3 + % G&S comparable sales growth in Q1 2021 Strong HC Solid activity Europe in Western +4.5% Europe Driven by Asia-Pacific China Americas Dynamic Eastern Europe +6.7% Rest of Asia -1.5% back to growth Middle-East Slight growth Africa excl. U.S. winter storm +17.5% Str

  8. Slide 8: Q1 – Improving Underlying Americas, Strong Europe

    Q1 – Improving Underlying Americas, Strong Europe G&S comparable sales growth ﹘ Sales growth excl. U.S. winter storm Americas – Pursued recovery, impact of winter storm ● LI ﹘ Ramp-up in Argentina FY 20: -3.7% ﹘ Growth of gas sales, all markets well oriented, Sales ● IM low Construction Q1 2021 ﹘ So

  9. Slide 9: Q1 – Strong Growth in Asia Driven by China

    Q1 – Strong Growth in Asia Driven by China G&S comparable sales growth Asia – Buoyant China, growing Rest of Asia FY 20: -0.1% ● LI ﹘ High activity in China ﹘ Strong H2/CO in Korea and H2 in Singapore Sales ﹘ Dynamic China > +30% Q1 2021 ● IM ﹘ Rest of Asia back to growth €1,150m ﹘ +8% growth in Car

  10. Slide 10: Q1 – IM Back to Growth, Improving LI

    Q1 – IM Back to Growth, Improving LI G&S comparable sales growth Industrial Merchant - Pursued improvement Large Industries - Better underlying activity Sales - Q1 2021 Sales - Q1 2021 €2,253m €1,445m FY 20: -6.3% FY 20: -0.1% ● 3 regions out of 4 back to growth ● Strong pick-up in Steel, higher Che

  11. Slide 11: Q1 – Very High Contribution from HC, Solid EL

    Q1 – Very High Contribution from HC, Solid EL G&S comparable sales growth Healthcare - Sustained growth contributor Electronics - Growth driven by Carrier Gases Sales - Q1 2021 Sales - Q1 2021 FY 20: +8.5% €914m €491m FY 20: +3.9% ● Stronger than expected Medical Gases sales ● High Carrier Gases gro

  12. Slide 12: Continued Focus on Performance and Solid Cash Flow

    Continued Focus on Performance and Solid Cash Flow IM Efficiency Portfolio Price/Mix program management ● €95m efficiencies in Q1 21 3 divestitures: +1.6% Yearly target €400m Greece, Sudac France, ● Business transformations propane bulk activity U.S. delivering (Digital, Support centers) 5 bolt-on acqui

  13. Slide 13: Energy Transition and EL Driving Investment Opportunities

    Energy Transition and EL Driving Investment Opportunities Investment Investment Investment Opportunities(1) Decisions(1) Backlog(1) 12-month portfolio Sasol €3.2bn • Increased level of opportunities: • After strong Q4, slightly lower • Stable Backlog ○ ~46% Energy transition decisions level in Q1: •

  14. Slide 14: High Level of Start-ups Contribution to Sales

    High Level of Start-ups Contribution to Sales Start-up/Ramp-up Start-up date of Sales Contribution major projects Q1 2021 €65m 2021 2019 Q1Q1 Q2 Q2 Q3 Q3 Q4 Q4 Canada Asia Asia US Confirmed Asia US Russia US FY 2021 ~€250m Guidance Kazakhstan US Asia Takeover + Russia Contribution of Sasol ASUs takeo

  15. Slide 15: Time to ACT: Local and Global Programs launched

    Time to ACT: Local and Global Programs launched Reminder 1 Abatement of CO emissions towards 2 carbon neutrality in 2050 2 Care for patients Trust as the base to engage with our employees 3 to build a best in class governance 15 April 23, 2021 Q1 2021 Activity A world leader in gases, technologies a

  16. Slide 16: Abatement of CO2 to Reach Carbon Neutrality

    Abatement of CO2 to Reach Carbon Neutrality Reminder CO2 emissions start Reach Carbon Air Liquide decreasing in absolute value Neutrality by 2050 Commitments ~2025 2035 2050 -30% Carbon intensity Decrease scope 1 & 2 in kg CO2/€ EBITDA(a) CO2eq emissions in vs 2015 absolute value by -33%(b) (a) at 2

  17. Slide 17: Sustainability, a Growth Opportunity for Air Liquide

    Sustainability, a Growth Opportunity for Air Liquide Reminder An ambition to triple our H2 business A unique position to leverage Before 2035 By 2030(a) Strong Innovation Business Model Sales Capex Electrolysis >3 x +~€8bn 6bn 3GW Basin Customer >€ Footprint Relationship (a) Including 1 GW decided s

  18. Slide 18: 2021 Guidance confirmed

    2021 Guidance confirmed “In a context of limited local Assumptions: lockdowns in 1st half and recovery in ● 1st half impacted by 2nd half, Air Liquide is confident in Covid-19 its ability to further increase its ● Recovery in 2nd half operating margin and to deliver ● Pursued pricing, efficiency recurri

  19. Slide 19: Appendix

    Appendix 19 April 23, 2021 Q1 2021 Activity A world leader in gases, technologies and services for Industry and Health

  20. Slide 20: Q1 2021 G&S Revenue Breakdown by Region

    Q1 2021 G&S Revenue Breakdown by Region Europe Europe Americas €1.8bn Asia-Pacific Americas 35% 39% €1.2bn €2.0bn €5,103m Gas & Services Revenue 5% 2% 11% 31% 31% 29% Africa Middle-East 19% 65% 35% 3% Asia-Pacific 4% 23% 32% 36% Industrial Merchant Large Industries Healthcare Electronics 20 April 23,

  21. Slide 21: Solid SU/RU Contribution, Strong Base Business

    Solid SU/RU Contribution, Strong Base Business Breakdown of G&S Sales Growth Base business: +1.7% 2019 2020 2021 21 April 23, 2021 Q1 2021 Activity A world leader in gases, technologies and services for Industry and Health

  22. Slide 22: Americas

    Americas Q1 2021 G&S comparable sales growth INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE ELECTRONICS • Growth of gas sales, • Sales growth excl. winter • High Medical O2 • Strong Carrier Gases low hardgoods storm throughout the region • Slight growth of E&I • All markets well oriented, • Strong

  23. Slide 23: Europe

    Europe Q1 2021 G&S comparable sales growth INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE • Sales above Q1 19, both PG & Bulk • Strong pick-up in Steel, improving • Continued strong Medical O2 • Improving Metal Fabrication, Energy, Chemicals but soft Refining • High Equipment sales but Technology, C

  24. Slide 24: Asia-Pacific

    Asia-Pacific Q1 2021 G&S comparable sales growth INDUSTRIAL MERCHANT LARGE INDUSTRIES ELECTRONICS • Dynamic China >+30%, well above • High level of activity in China • Strong Carrier Gases +8%, with 2 2019 levels SUs in China • Strong H2/CO in Korea and H2 • Rest of Asia back to growth, with • Lower

  25. Slide 25: Industrial Merchant Pricing

    Industrial Merchant Pricing Americas Europe Asia-Pacific Middle-East & Africa Total Industrial Merchant Q1 2021 % Q4 2020 % 25 April 23, 2021 Q1 2021 Activity A world leader in gases, technologies and services for Industry and Health

  26. Slide 26: Q1 2021 E&C and GM&T Activities

    Q1 2021 E&C and GM&T Activities Engineering Global Markets & Construction & Technologies ● Solid Sales vs. low Q1 20 ● Sales driven by dynamic Biogas and Deep Tech (1) (1) €76m +48% €155m +26% Total Sales(2) +19% ● Strong increase of order ● Sustained order intake vs. intake vs. low Q1 2020 high Q1

  27. Slide 27: Maintained High Level of Backlog at €3.0bn

    Maintained High Level of Backlog at €3.0bn Decisions Start-ups €1.0bn Yearly Sales Backlog after full Ramp-ups See definitions in appendix 27 April 23, 2021 Q1 2021 Activity A world leader in gases, technologies and services for Industry and Health

  28. Slide 28: Impact of Currency and Energy on G&S Revenue

    Impact of Currency and Energy on G&S Revenue in €m Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 €/USD +55 +30 (86) (126) (165) €/JP¥ +11 +11 (11) (9) (14) €/ARS (16) (23) (10) (26) (18) €/BRL (11) (22) (25) (23) (23) Others +1 (26) (66) (62) (46) Currency Impact +40 (30) (198) (246) (266) in €m Q1 20 Q2 20 Q3 20 Q

  29. Slide 29: 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 replace

  30. Slide 30: Regular and Sustained Performance

    Regular and Sustained Performance CAGR over 30 years(1) Revenue (in €m) +5.3% EPS(2) (in €) +6.7% Cashflow (in €m) +6.5% Dividend(2) (in € per share) +8.4% (1) Calculated according to prevailing accounting rules over 30 years. (2) Adjusted for the 2-for-1 share split in 2007, for free share attributi

  31. Slide 31: For further information, please contact

    For further information, please contact: Investor Relations Communication [email protected] [email protected] Upcoming events Annual General Meeting: May 4, 2021 First Half Revenue and Results: July 29, 2021 www.airliquide.com Follow us on Twitter @AirLiquideGroup Corporate Headquarters: 75,

  32. Slide 32: 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

Air Liquide — Q1 2021 Earnings Presentation on 6ix