Air Liquide SA · EURONEXT:AI
Air Liquide SA — Q3 2023 Earnings Presentation
29 slides from Air Liquide SA's earnings presentation, Oct 25, 2023
Slide 1: Q3 2023 Activity
Q3 2023 Activity François Jackow, Chief Executive Officer Jérôme Pelletan, Chief Financial Officer Mike Graff, Executive Vice President Pascal Vinet, Executive Vice President Paris, October 25, 2023 Normand’Hy project Credit ATAUB Architectes 1 Q3 2023 Activity - October 25, 2023
Slide 2: Resilience and Performance in a Challenging Environment
01 Resilience and Performance in a Challenging Environment Major Signings Propelling a Record High Backlog François Jackow - Chief Executive Officer 2 THIS DOCUMENT IS PUBLIC Q3 2023 Activity - October 25, 2023
Slide 3: Resilience, Performance and Major Project Signings in Q3 2023
Resilience, Performance and Major Project Signings in Q3 2023 Building Strong Performance the future Comparable IM Investment Efficiencies Cash Flow(1) Growth Pricing Backlog + 1.5% + 6.5% + 22% 9 + % € 4.2 bn vs YTD 2022 vs YTD 2022 In line with CO2 €320m YTD 2023 trajectory Q3 2023 figures (1) Cash
Slide 4: Major Signing for the Construction of the Largest 200MW PEM Electrolyzer
Major Signing for the Construction of the Largest 200MW PEM(1) Electrolyzer Renewable H2 at large scale to decarbonize industry and mobility in the Normandy basin ■ MoU(2) signed for 100MW with ■ Partnership ■ Awarded €190m fundings >€400m 200MW -250kt/y ■ Plant start-up in H2 2026 Investment Capaci
Slide 5: Delivering the Decarbonization Roadmap of the Normandy Basin
Delivering the Decarbonization Roadmap of the Normandy Basin Normandy basin First Worldwide 2 SMR 3 Low-Carbon H2 Network H2 Takeover Electrolyzer North Sea Le Havre twork Gonfreville 1. Existing SMR + CCU H 2 ne rk Port-Jérôme 5 e t wo 2. SMR Takeover connected to the Carbon Capture New CC 6 n 1 CO
Slide 6: Building a Low-C Gas Production Platform in Bécancour Basin, Canada
Building a Low-C Gas Production Platform in Bécancour Basin, Canada Addressing new manufacturing Leveraging strong synergies in the basin EV(1) battery market >€140m capex for low-C ASU(2) and pipelines r Electrolyzer ve ■ t Ri ■ Long-term contracts with several customers u ren . La Hydropower St Bu
Slide 7: Named Partner in 6 out of 7 Clean Hydrogen Hubs in the U.S.
Named Partner in 6 out of 7 Clean Hydrogen Hubs in the U.S. #1 industrial gas player in selected Clean H2 Hubs Anchor projects in 4 Hubs ■ H2 mobility infrastructure projects ■ In the Gulf Coast Hub: ■ Industrial projects with partners ■ Leveraging existing assets incl. H pipelines 2 Active in 2 add
Slide 8: Resilient Sales Growth, Disciplined Record High Investment Decisions
02 Resilient Sales Growth Disciplined Record High Investment Decisions, Preparing for Future Growth Jérôme Pelletan - Chief Financial Officer 8 THIS DOCUMENT IS PUBLIC Q3 2023 Activity - October 25, 2023
Slide 9: Resilient Comparable Sales Growth
Resilient Comparable Sales Growth Sales in €m Q3 22 Q3 23 Q3 23/22 Q3 23/22 YTD 23/22 As published Comparable Comparable Gas & Services 7,897 6,483 -17.9% +1.7% +4.0% Engineering & 115 110 -5.3% -0.8% -11.6% Construction Global Markets & 235 218 -7.1% -3.9% +1.0% Technologies Group Total 8,247 6,811
Slide 10: Industrial Merchant and Healthcare Driving Growth in Q3
Industrial Merchant and Healthcare Driving Growth in Q3 Q3 2023 Gas & Services comparable sales growth by Activities Europe +5% +3 % Asia-Pacific -2% +7% Americas +2 % Middle-East -2% Africa +8 % -5% Group Comparable sales growth +2 % 10 THIS DOCUMENT IS PUBLIC Q3 2023 Activity - October 25, 2023
Slide 11: Q3 – Solid Sales Growth in Americas and Europe
Q3 – Solid Sales Growth in Americas and Europe Americas High pricing in HC and IM, low LI and EL ▪ Soft demand ● LI ▪ Customer turnarounds FY 22: +10.2% FY YTD23:23: +4.9% ▪ Sustained +5% pricing Sales ● IM ▪ Resilient gas volumes Q3 2023 ▪ Strong pricing esp. in Proximity care in U.S. €2,556m ● HC
Slide 12: Q3 – Contrasted Asia, Accelerating Growth in AMEI
Q3 – Contrasted Asia, Accelerating Growth in AMEI Asia Strong IM, slowdown in EL ▪ Low activity, customer turnarounds FY 22: +7.0% YTD 23: +1.8% FY 23: ● LI ▪ Extended customer stoppage in China Sales ▪ +6% pricing Q3 2023 ● IM ▪ Strong volume growth in China €1,313m ▪ Low Materials and E&I vs. reco
Slide 13: Q3 – Robust Growth in IM, Stabilized Activity in LI
Q3 – Robust Growth in IM, Stabilized Activity in LI Industrial Merchant Large Industries Additional pricing, resilient gas volumes Stabilized activity Sales FY 23: Sales FY 22: +14.2% YTD 23: +9.5% FY 22: -6.6% YTD 23: -2.9% Q3 2023 Q3 2023 €2,988m €1,882m ● +6.5% pricing on top of a record high Q3
Slide 14: Q3 – Electronics Slowing Down, Sustained High Growth in Healthcare
Q3 – Electronics Slowing Down, Sustained High Growth in Healthcare Electronics Healthcare Comparing with record high growth in 2022 Home Healthcare & Medical gases driving growth FY 22: +16.4% YTD 23: +2.2% FY 23: FY 22: +3.6% YTD FY23: 23: +7.9% Sales Sales Q3 2023 Q3 2023 €600m €1,013m ● Slowdown
Slide 15: Delivering on Pricing and Efficiencies Fostering Margin Improvement
Delivering on Pricing and Efficiencies Fostering Margin Improvement IM Pricing Efficiencies Portfolio Management YTD +9.2% YTD 11 acquisitions +14.7% €320m U.S., Canada, Italy, China, India WIP Sweden +3.6% €400m Germany YTD Q3 2023 2021 2022 2023 2 divestitures Cumulative pricing effect base 100 year
Slide 16: High & Resilient IM Pricing Despite Record Level in Q3 22
High & Resilient IM Pricing Despite Record Level in Q3 22 Q3 22 Pricing context +16.1% ▪ Continued smart pricing Americas management +29.9% ▪ Decrease of Energy prices Europe ▪ Inflationary environment Asia-Pacific +9.3% ▪ Continued tightness in several molecules Middle-East & Africa +6.8% Bulk specifi
Slide 17: Record High Investment Decisions & Backlog Preparing for Future Growth
Record High Investment Decisions & Backlog Preparing for Future Growth 12-months investment Investment Decisions (1) Investment Backlog (1) Opportunities (1) Financial Industrial High level of opportunities: Record level with 3 major projects: Record high backlog, well balanced ■ >40% in Energy Tran
Slide 18: Updated Start-up Sales Contribution, Slightly Shifting to 2024
Updated Start-up Sales Contribution, Slightly Shifting to 2024 Start-up date of major projects Sales Contribution(1) 2023 2024 Q1Q1 Q2 Q2 Q3 Q3 Q4 Q4 Asia, YTD €200m US Asia US Europe Q3 2023 US (1) Europe US Europe US Asia US Updated ~€270m FY 2023 Large Industries Electronics GM&T (1) At constant
Slide 19: Confirmed 2023 Guidance
Confirmed 2023 Guidance Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates.(1) (1) Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant transact
Slide 20: Appendix
03 Appendix 20 THIS DOCUMENT IS PUBLIC Q3 2023 Activity - October 25, 2023
Slide 21: Q3 2023 - Beneficial Mix of Geographies and Activities
Q3 2023 - Beneficial Mix of Geographies and Activities Q3 2023 Gas & Services Revenue €6,483m 3% Global Markets & Technologies Engineering & Construction 1% 9% Electronics Europe Asia-Pacific 44% Industrial Americas Merchant €2.3bn Africa €1.3bn €2.6bn 15% Healthcare Middle-East €6,811m €0.3bn Q3 2023
Slide 22: Main Components of Sales Growth
Main Components of Sales Growth +12.6% +1.1% Base business 2019 2020 2021 2022 2023 Start-ups, Ramp-ups, Site takeovers Base business Significant M&A See definitions in appendix 22 THIS DOCUMENT IS PUBLIC Q3 2023 Activity - October 25, 2023
Slide 23: Q3 2023 - Sales by Geographies
Q3 2023 - Sales by Geographies Americas Europe Asia 4% 2% 10% 30% IM 32% 33% 29% Q3 23 LI sales split HC 16% €2,556m €2,331m €1,313m EL 70% 4% 34% 36% +1.8% +2.9% -2.0% Q3 23/22 Comparable Sales Growth 23 THIS DOCUMENT IS PUBLIC Q3 2023 Activity - October 25, 2023
Slide 24: Q3 2023 - Record E&C Order Intake, Robust GM&T Underlying activity
Q3 2023 - Record E&C Order Intake, Robust GM&T Underlying activity Comparable sales growth Engineering & Construction Global Markets & Technologies FY 22 : +20.6% YTD 23: -11.6% FY 22: +25.8% YTD 23: +1.0% Sales Sales Q3 2023 Q3 2023 €110m €218m Total Sales(1) in Q3 23 +3.5% Organic sales growth(2)
Slide 25: Impact of Currency and Energy on G&S Revenue
Impact of Currency and Energy on G&S Revenue in €m Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 €/USD +141 +271 +373 +274 +102 (50) (177) €/ARS (5) (4) (7) (62) (40) (62) (97) €/JP¥ (5) (10) (16) (23) (20) (17) (26) €/Rmb +52 +59 +62 +6 (18) (51) (83) €/ZAR +4 +2 +1 (1) (14) (31) (29) €/SGD +10 +18 +24
Slide 26: 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 replaceme
Slide 27: Regular and Sustained performance
Regular and Sustained performance CAGR over 30 years(1) Revenue (in €m) EPS (2) (in €) +6.5% +6.8% Cash Flow (in €m) Dividend (2) (in € per share) +7.2% +8.4% (1) Calculated according to prevailing accounting rules over 30 years (2) Based on current year results and proposed for payment the followin
Slide 28: For further information, please contact:
For further information, please contact: Upcoming events 2023 Full Year Results: February 20, 2024 Investor Relations www.airliquide.com [email protected] Follow us on @AirLiquideGroup Corporate Headquarters: Phone: +33 (0)1 40 62 51 50 75, Quai d’Orsay 75321 Paris Cedex 07 Communication Tel : +
Slide 29: 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