Credit Investor Presentation Strong growth reinforced throughout - PowerPoint PPT Presentation

Credit Investor Presentation Strong growth reinforced throughout the year and solid performance Significant debt and gearing reduction Full Year 2018

Agenda 1 Business Model 2 FY 2018 Activity 3 Business Development 4 Group Credit Profile 5 2019 Outlook 2 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Business Model 3 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

A New Dimension and Strong Fundamentals >3.5 m 80 65,000 >€ 21 bn Customers Countries Employees of Sales in 2018 and Patients >€ 2 > €4 >€46 bn bn bn Net Profit Cash Flow Market in 2018 in 2018 Capitalization* * on December 31, 2018 4 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

A Strong Business Model ESG (d) Chemical Electricity ESG (d) Producer Natural gas Refinery Filling center Water Metal Producer Mutualize assets 1 SMR (a) Home healthcare ASU (b) Patient Liquefaction ASU (b) 2 piggyback Electronics Customer Hospital Filling center On-site (c) Filling Distributors, customer center bolt-on 3 acquisitions Air Liquide Activities Large Industries Industrial Merchant Bulk and Cylinder Healthcare Customer Electronics (b) ASU: Air gases production unit (Air Separation Unit) ( a) SMR: Hydrogen and carbon monoxide production unit (Steam Methane Reformer) (c) On-site: Small local production unit (d) ESG: Electronic Specialty Gases 5 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Regular and Sustained Performance - 2018 + 5.8 % + 6.9 % Revenue (in €m) EPS (1) (in €) CAGR CAGR over 30 years (2) years (2) over 30 20 000 5,0 16 000 4,0 12 000 3,0 8 000 2,0 4 000 1,0 0 0,0 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Cashflow (in €m) Dividend (1) (in € per share) + 6.5 % + 8.3 % CAGR CAGR over 30 years (2) years (2) over 30 4 000 2,5 2,0 3 000 1,5 2 000 1,0 1 000 0,5 0,0 0 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 (1) Adjusted for the 2-for-1 share split in 2007, for attributions of free shares and for a factor of 0.974 reflecting the value of the rights of the capital increase completed in October 2016. (2) Calculated according to prevailing accounting rules over 30 years. 6 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

FY 2018 Activity 7 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

FY 2018 Highlights Strong sales growth in all ROCE markets and geographies ramping up (1) (3) + 6.1 % + 60 bps Improved G&S Record level of Operational margin investment decisions (2) + 30 bps + 22 % (1) Group comparable sales growth (3) Excluding FX impact and positive impact on 2017 (2) Excluding energy impact net profit of non-cash one-off items 8 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Growth at the Top of NEOS Range (1) (1) Note: NEOS sales growth objective between +6% and +8% CAGR 2016-2020, including Airgas scope effect in 2017 contributing +2% to the CAGR (1) Comparable sales growth: excluding currency, energy and significant scope impacts 9 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

High Sales Growth, Markets Well Oriented Outlook Sales growth Markets H1 19  FY + 6.1 % Chemicals 7%   LI Oil & gas 6%  Steel 5% 4%   Metal Fab. 3% 2%  Construction IM 1% Energy  0%  Food & Pharma H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 -1%   EL Integrated Circuit Comparable sales growth Group Gas & Services 10 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

FY 2018 – All Performance Indicators Further Improving (1) G&S OIR/sales Net profit Net debt ROCE <€ 836 m> + 30 bps + 4.2 % 8.0 % Gearing Excl. energy 69 % Excl. FX + 8.7 % 8.3 % (1) Compared to recurring 2017 net profit, excluding non cash non recurring items and taxes 11 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Dividend Proposal, 1 Free Share for 10 in 2019 Net Profit Dividend Growth (3) € 2.65 € 2.1 bn 20 yrs 2,8 CAGR 2,4 + 8.8 % Dividend (2) 2,0 As published in € per share 1,6 1,2 + 4.2 % 0,8 0,4 0,0 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Compared to 2017 Recurring Net Profit (1) (1) Excluding non-cash non-recurring items & taxes (2) Historical data adjusted for attribution of free shares and for a factor 0.974 reflecting the value of the rights of the capital increase completed in October 2016 (3) Subject to approval at the combined shareholders ’ meeting scheduled for 7 May 2019 12 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Positive Environment, Softening FX Headwind World IP at High Level in 2018 Neutral Forex Impact in Q4 2018 (2) Industrial Production growth in % YTD 2018 (1) - 0.1 % - 3.6 % World U.S. + 3.0 % + 4.0 % Q4 2018 FY 2018 Higher Positive Energy impact (2) Developing Euro zone Economies + 2.4 % + 1.3 % + 1.2 % + 4.5 % Q4 2018 FY 2018 (1) End of Nov. 2018, except U.S. end of Dec. 2018 (2) On Group sales 13 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Q4 - Strong Growth Drivers Across Geographies and WBLs + 13 % + 5 % INDUSTRIAL MERCHANT + 9 % + 3 % LARGE INDUSTRIES + 6 % + 5 % HEALTHCARE + 18 % ELECTRONICS AMERICAS DEVELOPING ASIA ECONOMIES Comparable G&S sales growth 14 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Base Business Operating at Highest Level G&S Quarterly Sales Growth Analysis +14% +31% +29% (1) Comparable growth based on 2016 adjusted sales 15 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Q4 – Strong Momentum in Americas, Solid Europe AMERICAS EUROPE FY 2018 FY 2018 €7,982m €7,111m G&S Comparable Sales Growth Dynamic activity in all WBLs High IM and HC • LI : high H 2 , start-ups in air gases • LI : HyCO turnarounds , start-up in Turkey • IM : high growth with increased pricing; most markets well- • IM : growth in all countries ; high bulk and cylinders; oriented , very strong Metal Fabrication stronger pricing • Dynamic HC in the U.S. and South America • HC : HHC driving growth especially diabetes in Nordics • EL : high Advanced Materials, buoyant E&I 16 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Q4 – Very Dynamic Asia, Major Start-Up in South Africa FY 18 : +15.5% MIDDLE-EAST ASIA-PACIF I C & AFRICA FY 2018 FY 2018 €4,359m €655m G&S Comparable Sales Growth IM boosted by China, buoyant EL Full impact of major start-up in LI • LI : 3 start-ups including Fujian but major • LI : Sasol start-up in South Africa in Dec. 17 H 2 turnaround in Singapore • IM : high growth in Egypt and India • IM : China driving growth with high cylinder volumes, • HC : major contribution from acquisition in softer pricing; dynamic SEA Saudi Arabia • EL : buoyant activity with double-digit growth in CG and AM, very dynamic E&I 17 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Continued Recovery in E&C, High Growth in GM&T GM&T - Strong Sales and Order Intake E&C - Strong Improvement € 474 m + 30 % € 430 m + 31 % Sales FY 2018* Sales FY 2018* € 807 m + 11 % € 460 m + 31 % Order Intake FY 2018 Order Intake FY 2018 * Comparable sales growth 18 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Improved OIR Margin in line with NEOS Note: Group FY 18 OIR Margin as published at 16.4% 19 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

$300m Airgas Synergies Fully Delivered Beginning 2019 End of 2018 Cumulated $ 290 m synergies ~$ 230 m  Costs  Revenue ~$ 60 m  $300m synergies expected in Q1 2019, one year ahead initial target  Airgas fully integrated  From 2019, future Airgas contribution to the efficiency program 20 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health

Efficiencies Outpaced NEOS Target of €300m per Year NEOS Cumulated Efficiencies FY 2018 Efficiencies as defined in initial target >€1,200m 2020 >€900m 2019 € 351 m € 674 m as of 31/12/2018 2018 2017 21 Full Year 2018 Credit Investor A world leader in gases, technologies and services for Industry and Health