Full Year 2018 Results Strong growth reinforced throughout the year and solid performance Paris, 14 February 2019
Agenda 1. Profitable, consistent and responsible growth 2. Strong growth reinforced throughout the year and solid performance Strengthening efficiency program Dynamic business development 3. 2019 outlook 2 14 February 2019 FY 2018 Results A world leader in gases, technologies and services for Industry and Health
Profitable, consistent and responsible growth Benoît Potier Chairman & Chief Executive Officer 3 14 February 2019 FY 2018 Results 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 4 14 February 2019 FY 2018 Results 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 5 14 February 2019 FY 2018 Results 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 % + 8.7 % 8.3 % Excl. FX (1) Compared to recurring 2017 net profit, excluding non cash non recurring items and taxes 6 14 February 2019 FY 2018 Results 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 0,8 + 4.2 % 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 7 14 February 2019 FY 2018 Results A world leader in gases, technologies and services for Industry and Health
Record Level for Investment Decisions, >€3bn ~ 40 % ~ 40 % Reinforcing presence in key basins ~ 20 % Strategic positions in growing markets Opening innovative new markets Large Industries Electronics Global Markets & Industrial Merchant Technologies 2018 investment decisions A world leader in gases, technologies and services for Industry and Health 8 14 February 2019 FY 2018 Results
2019 - Focus On NEOS Objectives Strategic investments to support growth Profitable Strengthening efficiencies growth Focus on ROCE Solid and resilient Business Model Consistent Innovation and digital growth Operational excellence Climate objectives, 2015-2025 Responsible Reduce carbon intensity by 30% o growth Develop new low carbon solutions o for customers and ecosystems A world leader in gases, technologies and services for Industry and Health 9 14 February 2019 FY 2018 Results
Strong Growth Reinforced throughout the Year and Solid Performance Fabienne Lecorvaisier Executive Vice President & Chief Financial Officer 10 14 February 2019 FY 2018 Results 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 11 14 February 2019 FY 2018 Results 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 12 14 February 2019 FY 2018 Results 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 A world leader in gases, technologies and services for Industry and Health 13 14 February 2019 FY 2018 Results
Base Business Operating at Highest Level G&S Quarterly Sales Growth Analysis +14% +31% +29% (1) Comparable growth based on 2016 adjusted sales 14 14 February 2019 FY 2018 Results 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 • IM : growth in all countries ; high bulk and well-oriented , very strong Metal Fabrication cylinders; 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 15 14 February 2019 FY 2018 Results 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-PACIFIC & 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 • HC : major contribution from acquisition in volumes, softer pricing; dynamic SEA Saudi Arabia • EL : buoyant activity with double-digit growth in CG and AM, very dynamic E&I 16 14 February 2019 FY 2018 Results A world leader in gases, technologies and services for Industry and Health
Q4 – Strong IM, Solid LI FY 18 : +4.5% INDUSTRIAL LARGE MERCHANT INDUSTRIES FY 2018 FY 2018 €9,181m €5,685m G&S Comparable Sales Growth Favorable environment with price hikes Robust growth, several start-ups All end markets positive • 5 SUs , contribution only end of Q4 Very strong fabrication market • Strong H 2 in Americas Strong bulk, cylinders catching up • HyCO turnarounds in Europe Increased pricing at +3.3% and Asia 17 14 February 2019 FY 2018 Results A world leader in gases, technologies and services for Industry and Health
Q4 – Steady HC Growth, Buoyant EL HEALTHCARE ELECTRONICS FY 2018 FY 2018 €3,486m €1,755m G&S Comparable Sales Growth Very solid organic activity Record sales growth • Double-digit growth in HHC, • Strong demand from low level of bolt-on acquisitions IC market • Solid business model • Very high growth of CG and AM • High Medical Gases in Americas driven by Proximity Care • Very dynamic E&I 18 14 February 2019 FY 2018 Results 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 19 14 February 2019 FY 2018 Results 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% 20 14 February 2019 FY 2018 Results 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 Costs ~$ 230 m 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 A world leader in gases, technologies and services for Industry and Health 14 February 2019 FY 2018 Results 21
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 22 14 February 2019 FY 2018 Results A world leader in gases, technologies and services for Industry and Health
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