Air Liquide SA · EURONEXT:AI
Air Liquide SA — H1 2013 Earnings Presentation
46 slides from Air Liquide SA's earnings presentation, Jul 30, 2013
Slide 1: 2013 H1 Consistent Performance, Capturing growth opportunities
2013 H1 Consistent Performance Cliquez Capturing pouropportunities growth modifier le style des sous-titres du masqueBenoît Potier|Chairman and CEO Paris, July 30, 2013 | Fabienne Lecorvaisier |Chief Financial Officer
Slide 2: 2013 H1 Performance
2013 H1 Performance Paris, July 30, 2013 Benoît Potier|Chairman and CEO Consistent performance Capturing growth opportunities 5%+ underlying trend confirmed Operating margin maintained Strong Cash flow 2 July 30, 2013 H1 2013 Results Air Liquide, world leader in gases for industry, health and the en
Slide 3: Stronger Q2
Stronger Q2 H1 2013 Group sales growth Excl. Currency and Natural Gas + 3.0 % Q1 2013 Q2 2013 + 0.2 % + 5.8 % H1 2012 H1 2013 OIR/sales margin 16.5 % 16.6 % 3 July 30, 2013 H1 2013 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 4: Consistent performance
Consistent performance Group sales Operating Cash flow(3) In €bn 7.6 In €bn 8 7.5 7.1 6.5 1.4 1.5 1,5 . 1.3 1.3 6 1,0 4 +3% (1) +6% 2 0,5 0 0,0 H1 10 H1 11 H1 12 H1 13 H1 10 H1 11 H1 12 H1 13 Group Efficiencies Net Capex(2) In €m 2013 Objective In €bn 1,2 1.1 280 270 284 ≥ 250 M€ 1.0 300 1 0.8 0.8 0
Slide 5: Strong cash flow financing capex
Strong Cash flow financing capex Net cash flow from operations (1) Net capex (2) In €m 3000 Average cash flow 2500 Average capex 25% 2000 1500 1000 500 0 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 H1 2013 (1) After changes in WCR (2) Industrial and financial, including transaction with minority shareho
Slide 6: Investments focused in growth markets
Investments focused in growth markets Home Healthcare New Capacities H2 energy Hygiene Fracking H2 energy Chemicals Beverage Innovation Chemicals Refining Chemicals Logistics Metals Carrier gases Food New Capacities Home Home Healthcare € 1.5 bn Healthcare H2 energy in H1 Metals 2013 Large industrie
Slide 7: Capturing growth opportunities
Capturing growth opportunities Industrial Merchant Large Industries Deploying offer in all Developing energy conversion growing regions through technologies Beverage Gasification Electronics Healthcare Building Extending our strong positions Home Healthcare offer Advanced materials Home infusion 7 J
Slide 8: Favorable outlook for Industrial Production in Q4 2013
Favorable outlook for Industrial Production in Q4 2013 (1) Industrial production index expected for Q4 2013. Source: Consenus Economics Inc, June 2013. 8 July 30, 2013 H1 2013 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 9: 2013 H1 Performance
2013 H1 Performance Paris, July 30, 2013 Fabienne Lecorvaisier |Chief Financial Officer Consistent performance Capturing growth opportunities 5%+ underlying trend confirmed Operating margin maintained Strong Cash flow 9 July 30, 2013 H1 2013 Results Air Liquide, world leader in gases for industry, h
Slide 10: 2013 H1 Performance: Activity
2013 H1 Performance Activity Operating performance 10 July 30, 2013 H1 2013 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 11: 5%+ underlying growth trend confirmed in Q2
5%+ underlying growth trend confirmed in Q2 H1 13/12 H1 13/12 Q1 13/12 Q2 13/12 Sales in €m H1 2013 as published excl. currency underlying excl. currency and natural gas trend and natural gas Gas & Services 6,885 +0.7% +3.5% +4.9% +5.6% Engineering & Technology 372 +1.8% Other Activities 304 -7.8% G
Slide 12: Activity level progressing
Activity level progressing Quarterly G&S activity indicator(1) Base 100, 2010 2011 2012 2013 average 2008 120 115 110 105 100 95 90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (1) Revenue (excluding currency and natural gas), adjusted for the number of days per month. 12 July 30, 2013 H1 2013 Results
Slide 13: Sales for Industries improving in Advanced economies
Sales for Industries improving in Advanced economies G&S for Industries (GSI) sales growth(1) (Q2 2013/ Q2 2012) 0% +27% + 9% +8% growth +5% -3% +15% +11% 27% of GSI in Q2 2013 Advanced economies Developing economies +1% +9% (1) G&S for Industries sales excluding healthcare sales. Comparable growth
Slide 14: Healthcare strong increase in all regions
Healthcare strong increase in all regions Healthcare sales growth(1) (Q2 2013/Q2 2012) +18% +16% growth(1) +10% +9% +24% 20% of G&S in Q2 2013 Healthcare presence (1) Growth excluding currency impacts. 14 July 30, 2013 H1 2013 Results Air Liquide, world leader in gases for industry, health and the e
Slide 15: Higher Q2 G&S sales growth
Higher Q2 G&S sales growth H1 sales Comparable growth(1) Total G&S 4.0% €6,885m 2.0% LI maintenance Home Healthcare Europe 2.2% €3,547m IM stabilization 1.2% Healthcare pricing LI in Eastern Europe Fracking Americas 8.4% Volumes in Brazil O2 in Canada €1,590m 3.9% HyCO volumes Asia Pacific 2.2% Low
Slide 16: Healthy business mix
Healthy business mix G&S comparable growth(1) Industrial Merchant Large Industries +8% +7% +4% +4% +5% +4% (2) +3% +3% +2% +2% +1% +1% 38% 36% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 H1 Electronics 2013 Healthcare +16% +14% 8% 18% +12% +2% LVL + Gasmedi +6% +5% -4% -6
Slide 17: Sound Q2 activity in Engineering & Technology
Sound Q2 activity in Engineering & Technology E&T order intake(1) Third party E&T sales 1,942 964 785 372 In €m In €m 750 718 300 252 556 225 516 500 200 188 178 448 167 417 147 +20% 251 250 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2012 2013 (1) Including advanced Business & Technologie
Slide 18: 2013 H1 Performance: Operating performance
2013 H1 Performance Activity Operating performance 18 July 30, 2013 H1 2013 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 19: Robust margin level
Robust margin level Change In €m H1 2012(1) H1 2013 13 vs 12 Revenue 7,533 7,561 +0.4% Purchases (3,010) (2,960) -1.7% Personnel expenses (1,340) (1,374) +2.5% Other net income and expenses (1,337) (1,351) +1.1% Operating profit before depreciation 1,846 1,876 +1.7% Depreciation and amortization (60
Slide 20: G&S margin supported by strong efficiency gains
G&S margin supported by strong efficiency gains G&S OIR margin in €m 1 400 18.7% 18.7% +133 +81 1 300 1,277 +2 0 1,291 <68> +23 1 200 <75> G&S G&S 1 100 0 1 000 OIR Volume Energy Cost Price Efficiencies Forex OIR mix effect increase excl. and H1 2012 energy Others H1 2013 OIR = Operating Income Recu
Slide 21: Significant non recurring expenses
Significant non recurring expenses Change In €m H1 2012(1) H1 2013 13 vs 12 Revenue 7,533 7,561 +0.4%(2) Operating Income Recurring 1,245 1,256 +0.9% Other non-recurring operating income & expenses 10 (41) Operating Income 1,255 1,215 -3.1% Net financial costs and other net financial expenses (163)
Slide 22: Strong cash flow performance
Strong cash flow performance Net debt In €m <932> +85 <6,837> +6% +734 <6,103> + 1,501 <1,081> Gearing ratio <307> Gearing ratio 58% 60% (3) Net Debt Cash flow WCR Net Dividends net Forex Net Debt, Dec 31, 2012 + others Investments(1) of capital June 30, 2013 increases (2) (1) Industrial and financi
Slide 23: Net debt discipline
Net debt discipline Net debt to equity ratio Average cost of net debt (as reported) 80% 5,5% 5,3% 70% 5,0% 60% 4,8% 4,5% 50% 4,3% 4,0% 40% 2008 2009 2010 2011 2012 2013 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 2008 2009 2010 2011 2012 2013 As of June 30 As of Dec 31 23 July 30, 2013 H1 2013 Resul
Slide 24: High investment decisions at €1.5 bn
High investment decisions at €1.5 bn 12-month portfolio Investment of opportunities decisions(1) Net capex(1) Start-ups(2) In €bn In €bn In €bn 50 e 4.2 24 4.1 4.0 3.8 1.5 1.4 1.4 16 17 1.3 15 1.5 1.1 1.2 1.0 1.0 0.8 0.8 0.8 0.8 2.7 2.7 2.5 2.5 0.4 9 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 Dec- Jun- Dec- Jun-
Slide 25: 2013 Outlook maintained
2013 Outlook maintained H1 2013 ■ Investments focused on growing markets ■ Consistent performance ■ Realignment plans engaged 2013 objective Barring a degradation of the environment, Air Liquide is confident in its ability to deliver another year of net profit growth in 2013 25 July 30, 2013 H1 2013
Slide 26: H1 2013 Appendix
H1 2013 Appendix 26 July 30, 2013 H1 2013 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 27: Impact of currency and natural gas on G&S revenue
Impact of currency and natural gas on G&S revenue Currency In €m Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 €/USD +18 +54 +56 +20 (3) (10) €/CAD +4 +11 +16 +11 (2) (5) €/JP¥ +21 +37 +30 (3) (40) (55) Others +27 +48 +57 +33 (20) (27) Total currency impact +70 +150 +160 +61 (65) (97) Average rate Q1 12 Q2 12
Slide 28: Consolidated P&L
Consolidated P&L In €m H1 2012(1) H1 2013 Revenue 7,533 7,561 Cost of goods (5,687) (5,685) Operating income recurring before depreciation 1,846 1,876 Depreciation and amortization expenses (601) (620) Operating income Recurring 1,245 1,256 Net non-recurring operating income 10 (41) Operating income
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet In €m ASSETS 31/12/12(a) 30/06/13 EQUITY AND LIABILITIES 31/12/12(a) 30/06/13 Goodwill 5,133 5,127 Shareholders’ equity 10,191 9,998 Fixed assets 13,511 13,715 Minority interests 233 234 Other non-current assets* 1,084 1,050 Total equity 10,424 10,232 Total non-current ass
Slide 30: Cash Flow statement
Cash Flow statement H1 H1 In €m 2012(1) 2013 Funds provided by operations 1,413 1,501 Changes in Working Capital (270) (266) Other items (5) (41) Net cash from operating activities 1,138 1,194 Purchase of PPE* and intangible assets (958) (982) Purchase of financial assets (59) (109) Proceeds from sa
Slide 31: Comparable growth above last year average
Comparable growth above last year average G&S comparable growth(1) 2010 2011 2012 2013 12% +11.0%+11.3%+11.4% +10.7% 10% +9.7% +8.3% +7.7% 8% 6% +4.6% +4.0% +4.0% 4% (2) +1.9% +1.5% 2% +1.6% +0.9% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (1) Excluding the impacts of currency, natural gas and sig
Slide 32: Steady contribution from growth initiatives
Steady contribution from growth initiatives G&S quarterly growth analysis 7,0% Base business 5,0% Start-ups, Ramp-ups, Site takeovers, 3,0% Small acquisitions Significant 1,0% perimeter -1,0% -3,0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q1 2013 excluding the impact of 2012 custo
Slide 33: Revenue analysis by quarter (1)
Revenue analysis by quarter (1) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q2 13/12 Q2 13/12 Sales in €m as published comparable(1) Europe 1,747 1,724 1,728 1,827 1,769 1,778 +3.1% +2.2% Americas 772 746 793 797 766 824 +10.5% +8.4% Asia-Pacific 840 835 873 868 780 782 -6.3% +2.2% Middle-East 84 89 96 93 9
Slide 34: Revenue analysis by quarter (2)
Revenue analysis by quarter (2) Sales in €m Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q2 13/12 Q2 13/12 as published comparable(1) Large Industries 1,262 1,204 1,253 1,296 1,225 1,236 +2.7% +4.8% Industrial 1,281 1,283 1,322 1,307 1,254 1,284 +0.1% +3.8% Merchant Healthcare 598 599 607 678 659 685 +14.4%
Slide 35: G&S Revenue growth by quarter (2)
G&S Revenue growth by quarter (2) Growth as Significant Comparable Natural Gas Currency published scope growth(1) Q1 2012 +6.3% +0.7% +2.2% -0.6% +4.0% Q2 2012 +4.9% +0.0% +4.6% -0.6% +0.9% Q3 2012 +6.5% -0.3% +4.9% +0.3% +1.6% Q4 2012 +8.2% +0.2% +1.8% +1.6% +4.6% Q1 2013 -1.1% -0.6% -1.9% +1.4% +1
Slide 36: H1 2013 G&S revenue growth
H1 2013 G&S revenue growth +2.0% in €m comparable (1) +134 <29> <163> 6,885 7000 6,837 +105 6500 +0.7% published 6000 growth 5500 5000 0 4500 H1 2012 Comparable Natural gas Currency Scope H1 2013 growth (1) (1) Excluding forex, natural gas and significant scope impacts 36 July 30, 2013 H1 2013 Resul
Slide 37: H1 2013 Revenue breakdown by region
H1 2013 Revenue breakdown by region Americas Europe 23% Gas & Services H1 Revenue 51% €6,885m 23% Asia-Pacific 3% Middle-East and Africa Europe: €3.5bn Americas: €1.6bn Asia-Pacific: €1.6bn 2% 6% 11% 23% 30% 31% 37% 5% 47% 36% 35% 37% Industrial Merchant Large Industries Healthcare Electronics 37 Ju
Slide 38: Europe in Q2
Europe in Q2 Electronics Q2 Gas & Services sales: € 1,778m Industrial 2% Merchant ■ Industrial Merchant Healthcare 31% 31% Stabilization in Western Europe Large Acquisitions in Russia and UK 36% Industries Positive pricing Q2 13/12 Comparable change (1): + 2.2 % ■ Large Industries Start-up in Russia
Slide 39: Americas in Q2
Americas in Q2 Electronics Q2 Gas & Services sales: € 824m Healthcare 6% 11% ■ Industrial Merchant Industrial Merchant 46% Sustained activity in Canada 37% Volume growth in Argentina and Mexico Large Industries Slight slow down in Brazil Q2 13/12 Comparable change (1): +8.4% ■ Large Industries Indus
Slide 40: Asia in Q2
Asia in Q2 Electronics Q2 Gas & Services sales: € 782m 23% 37% Industrial Merchant Healthcare 5% ■ Industrial Merchant Japan still weak 35% High single digit growth in China Large Industries ■ Large Industries Q2 13/12 Comparable change (1): +2.2% Ramp-ups in China Lower HyCO demand +0.4% Industrial
Slide 41: Industrial Merchant pricing
Industrial Merchant pricing Q2 2013 H1 2013 Europe +0.5% +0.5% +4.0% Americas +3.5% +1.1% Asia-Pacific +1.1% +8.0% Middle-East and Africa +6.4% +2.0% Total Industrial Merchant +1.8% 41 July 30, 2013 H1 2013 Results Air Liquide, world leader in gases for industry, health and the environment
Slide 42: Engineering & Technology
Engineering & Technology In €m H1 2012 H1 2013 Consolidated revenues 365 372 OIR(1) margin 9.1% 8.9% Total order intake(2) 1,135 964 Total orders-in-hand(2) 4,549 4,919 ASU 9% 3% Total Orders-in-hands HyCO 11% breakdown Traditional energy at June 30, 2013 45% Alternative energy 10% Renewable energy
Slide 43: Operating margin – natural gas effect
Operating margin – natural gas effect Group, in €m H1 2012 H1 2013 Revenue 7,533 7,561 Incl. Natural gas effect (29) Operating income recurring 1,244 1,256 Operating margin 16.5% 16.6% Operating margin excluding natural gas 16.5% Gas and services, in €m H1 2012 H1 2013 Revenue 6,837 6,885 Incl. Natu
Slide 44: Operating margin (OIR/Revenue)
Operating margin (OIR/Revenue) 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% 16.6% 16.7% Gas & Services 19.0% 18.8% 18.9% H1 12 H2 12 2012 2012 Group 16.5% 16.9% 16.7% Gas & Services 18.7% 19.0% 18.8% as Excl. published Nat gas H1 20
Slide 45: Gas & Services capex by geography
Gas & Services capex by geography G&S FY 2012 Investments(1) G&S H1 2013 Investments(1) €2.8bn €1.1bn Middle East - Africa Middle East - Africa 8% 10% Europe Asia-Pacific Europe 20% 39% 26% Asia-Pacific 53% 19% 25% Americas Americas (1) Industrial and financial investments, including transactions wi
Slide 46: www.airliquide.com
For further information, please contact: Investor Relations Communications Virginia Jeanson + 33 (0)1 40 62 57 37 Anne Bardot + 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.com Follow us on