2012 H1 Performance 2012 H1 Performance l Benot Potier l Chairman - PowerPoint PPT Presentation

2012 H1 Performance 2012 H1 Performance l Benoît Potier l Chairman and CEO Paris, July 30, 2012 l Fabienne Lecorvaisier l Chief Financial Officer

2012 H1 Performance Paris, July 30, 2012 Soft growth in Q2 Performance preserved Strong cash flow Investment dynamic maintained Investment dynamic maintained Further opportunities in the Energy and Environment markets Air Liquide, world leader in gases for industry, health and the environment 2 July 30, 2012 H1 2012 Results

H1 Group sales up +5.9% H1 2011 H1 2012 H1 12/11 H1 12/11 Sales in €m Sales in €m as published as published comparable (2) comparable (2) revised (1) revised (1) Gas & Services 6,475 6,837 +5.6% +2.4% Engineering & Construction 290 365 +26.0% +23.9% Other Activities 350 331 -5.8% -7.2% Group Total Group Total 7,115 7,115 7,533 7,533 +5.9% +5.9% +2.8% +2.8% (1) 2011 figures are revised for the transfer of Seppic from Other activities to the Healthcare segment within Gas and Services. (2) excluding forex, natural gas and significant scope impacts Air Liquide, world leader in gases for industry, health and the environment 3 July 30, 2012 H1 2012 Results

Softer growth environment � Developing economies G&S comparable growth (1) � Advanced economies +30.4% 30% 30% +25.7% 25% +18.6% 20% 15% +11.0% +10.0% +8.3% +7.5% 10% +5.9% +5.0% +5.0% 5% +2.3% -1.1% - 0.2% 0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 -5% (1) excluding forex, natural gas and significant scope impacts Air Liquide, world leader in gases for industry, health and the environment 4 July 30, 2012 H1 2012 Results

Performance preserved + 5.6% (1) G&S sales Group Efficiencies In €bn In €M 6.8 6.4 335 5.7 280 6 300 5.0 270 Annual objective 2012 > 200 M€ > 200 M€ 4 200 2 126 100 0 0 H1 09 H1 10 H1 11 H1 12 2009 2010 2011 2012 Net Capex (2) Operating Cash flow (3) In €bn In €bn 2 +6.0% 1.7 1.7 2 +25.6% 1.4 1.4 1.4 1.4 1.3 1.3 1,5 2 1.3 1.0 1.1 1 1 0,5 1 H1 H1 H1 H1 0 0 2009 2010 2011 2012 H1 09 H1 10 H1 11 H1 12 (1) Published growth. (2) Industrial and financial investments, including transactions with minorities, net of divestitures. (3) from operations, before WCR. Air Liquide, world leader in gases for industry, health and the environment 5 July 30, 2012 H1 2012 Results

2012 H1 Performance l Fabienne Lecorvaisier l Chief Financial Officer Paris, July 30, 2012 � Activity � Performance � Investments Air Liquide, world leader in gases for industry, health and the environment 6 July 30, 2012 H1 2012 Results

Activity level flattening sequentially Quarterly G&S activity indicator (1) 2009 2010 2011 2012 base 100, average 2008 115 110 105 100 95 90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (1) comparable revenue (excluding forex, natural gas and significant scope impacts), adjusted for the number of days per month Air Liquide, world leader in gases for industry, health and the environment 7 July 30, 2012 H1 2012 Results

Resulting in modest growth year on year G&S comparable growth (1) 2009 2010 2011 2012 11.0% 11.3% 11.4% 12% 10.7% 9.7% 9.7% 10% 8.3% 7.7% 8% 6% 4.0% 4% 1.9% 0.9% 2% 0% -2% -2% -4% -4.2% -4.6% -6% -5.1% -5.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (1) excluding forex, natural gas and significant scope impacts. 2009, 2010 and 2011 growth rates are not restated for the integration of Seppic into the G&S activity. Air Liquide, world leader in gases for industry, health and the environment 8 July 30, 2012 H1 2012 Results

Developing economies progressing +10% Comparable G&S sales growth (1) G&S sales share in (H1 2012/H1 2011) developing economies +31% +31% 21% 22% + 6% -1% +4% * 19% 16% -2% 15% +20% +13% Advanced economies Developing economies 2008 2009 2010 2011 H1 2012 + 1% + 10% * +8% excluding Electronics (1) excluding forex, natural gas and significant scope impacts. Air Liquide, world leader in gases for industry, health and the environment 9 July 30, 2012 H1 2012 Results

Soft environment in Europe and Asia H1 12 G&S Sales Economic context Business Comparable growth (1) Very strong Weak IM Eastern Europe Low Steel demand Europe +0.4% +0.4% Healthcare tender cycles €3,471m Small industry decline in Southern Europe Canada and Latam strong IM Americas +6.9% Low natural gas price Solid Healthcare €1,518m Electronics Fewer start-ups Asia Pacific investment cycle +1.2% Electronics Electronics €1,675m €1,675m Solid growth in China Solid growth in China restructuring in Japan +19.9% ME & Africa Post Arab spring rebound Development efforts €173m (1) Comparable growth, H1 2012/H1 2011, excluding forex, natural gas and significant scope impacts Air Liquide, world leader in gases for industry, health and the environment 10 July 30, 2012 H1 2012 Results

Growth in all gas segments, excluding E&I Industrial Merchant + 3.2% Large Industries +5.1% YTD YTD 10% 20% +17% +17% 8% 15% +11% +4% +4% 5% +3% +3% 10% 10% +7% +7% +2% +2% +2% 3% 5% +3% +2% 0% 0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 H1 36% 37% 2012 Electronics -11.1% Healthcare +3.7% YTD YTD 18% 9% +28% 30% 10% +19% +19% +8% +8% +8% +8% 20% 8% +13% +2% +7% +7% excl. E&I 10% +6% 6% 0% 4% -10% +2% -8% 2% -11% -12% -20% 0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Comparable growth: excluding forex, natural gas and significant scope impacts, relative to the same period in preceding year. Air Liquide, world leader in gases for industry, health and the environment 11 July 30, 2012 H1 2012 Results

Due to development initiatives Base business G&S quarterly growth analysis Start-ups, Ramp-ups, Site takeovers, 8% Small acquisitions Small acquisitions 6% 4% 2% 0% -2% -4% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Air Liquide, world leader in gases for industry, health and the environment 12 July 30, 2012 H1 2012 Results

2012 H1 activity l Fabienne Lecorvaisier l Chief Financial Officer Paris, July 30, 2012 � Activity � Performance � Investments Air Liquide, world leader in gases for industry, health and the environment 13 July 30, 2012 H1 2012 Results

Performance preserved Change H1 2011 H1 2012 In €m 12 vs 11 +5.9% Revenue 7,115 7,533 Purchases Purchases (2,794) (2,794) (3,010) (3,010) +7.7% +7.7% Personnel expenses (1,245) (1,341) +4.7% Other net income and expenses (1,313) (1,336) +4.6% 1,845 Operating profit before depreciation 1,763 +5.0% (601) Depreciation and amortization (572) Operating Income Recurring (OIR) 1,191 1,244 +4.4% OIR margin 16.7% 16.5% OIR margin 16.6% excl. natural gas effect -10bps Air Liquide, world leader in gases for industry, health and the environment 14 July 30, 2012 H1 2012 Results

Robust margins maintained in G&S G&S OIR margin in €m 18.7% (1) 19.0% 1 300 +11 1,277 +120 +120 +22 +22 0 +12 1,233 1 250 1 200 +32 1 150 G&S G&S <141> 1 100 1 050 1 000 0 OIR OIR Cost Price Efficiencies Forex Volume Energy increase excl. and mix effect H1 2012 H1 2011 energy Others OIR = Operating Income Recurring (1) Excl. Natural Gas, 18.7% as published Air Liquide, world leader in gases for industry, health and the environment 15 July 30, 2012 H1 2012 Results

Continued pricing and efficiency actions Cost inflation Pricing Efficiencies in €m 120 80 40 2010 2011 2012 0 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 -40 2010 2011 2012 2010 2011 2012 -80 -120 -160 Air Liquide, world leader in gases for industry, health and the environment 16 July 30, 2012 H1 2012 Results

Profits aligned with Sales Change In €m H1 2011 H1 2012 12 vs 11 Revenue 7,115 7,533 +5.9% (1) Operating Income Recurring 1,191 1,244 +4.4% Other non-recurring operating income & expenses Other non-recurring operating income & expenses 0 0 10 10 Operating Income 1,191 1,254 +5.2% Net financial costs and other net financial expenses (148) (153) Income taxes (274) (292) Tax rate 26.3% 26.5% Share of profit of associates Share of profit of associates 13 13 14 14 Minority interests (32) (33) Net profit (Group share) 750 790 +5.3% +5.4% Earnings per share (in €) 2.41 (2) 2.54 (1) + 5.6% excluding natural gas impact (2) adjusted for the free share attribution in May 2012. Air Liquide, world leader in gases for industry, health and the environment 17 July 30, 2012 H1 2012 Results

Strong cash flow Net debt In €m <6,011> <55> <855> +23% +763 +763 <5,248> + 1,422 <991> Gearing ratio Gearing ratio 55% (3) 53% <284> WCR Net Debt Cash flow Net Dividends net Forex Net Debt, + others Dec 31, 2011 of capital Investments (1) June 30, 2012 increases (2) (1) Including transactions with minority shareholders, net of divestitures (2) incl. share purchases €113m (3) Adjusted for the seasonal dividend effect. Air Liquide, world leader in gases for industry, health and the environment 18 July 30, 2012 H1 2012 Results