Air Liquide at a Glance Investor Presentation FY 2017
1 Air Liquide in Brief Air Liquide at a glance The world leader in gases, technologies and services for Industry and Health 2
The World Leader in Gases, Technologies and Services for Industry & Health FY 2017 Group Figures Established in >2 M 1902 Clients >€ 20 bn 16.5 % ~65,000 1.5 M 80 countries Sales OIR margin Employees Patients Air Liquide at a glance 3 The world leader in gases, technologies and services for Industry and Health
Air Liquide at a glance 4 The world leader in gases, technologies and services for Industry and Health
A Balanced Footprint by Business Line and Geography Gas & Services revenue in 2017 9% 47% 96 % 21% 35% of Group Revenue 41% 5 Air liquide at a glance The world leader in gases, technologies and services for Industry and Health
Regular and Sustained Performance Revenue (in €m) EPS (1) (in €) + 6.0 % + 7.5 % 21 000 18 000 CAGR CAGR over 30 years (2) 5,0 over 30 years (2) 15 000 4,0 12 000 3,0 9 000 2,0 6 000 1,0 3 000 0,0 0 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 Cashflow (in €m) Dividend (1) (in € per share) + 6.9 % + 8.6 % 3,0 4 500 4 000 CAGR CAGR 2,5 over 30 years (2) over 30 years (2) 3 500 2,0 3 000 2 500 1,5 2 000 1,0 1 500 1 000 0,5 500 0,0 0 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 (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. Air Liquide at a glance 6 The world leader in gases, technologies and services for Industry and Health
2 Airgas: A Game-Changing Acquisition May 2016 Air Liquide at a glance 7 The world leader in gases, technologies and services for Industry and Health
Airgas: A Key Industrial Merchant Player in the U.S. ● Major player in the U.S. market ● Solid track record of value creation – Leader in packaged gas – Unparalleled sales growth since 1982 – Major supplier of hardgoods – Proven operational excellence ● Multi-channel distribution network ● Unrivalled customer base with unmatched reach – >1 million customers – Largest footprint and asset base in – Resilient profile with diversified the U.S. customer segments – Coupled with best-in-class e-commerce platform Air Liquide at a glance The world leader in gases, technologies and services for Industry and Health 8
Strong Business Fit between Airgas and Air Liquide Primary production • Air Liquide: focus on upstream • Airgas: focus on downstream Liquid bulk Liquid bulk • Highly complementary businesses • Implied synergies Pipeline & Fill plant Fill plant Fill plant on-sites • Improved customer reach Bulk deliveries e- Direct Retail Telesales commerce delivery U.S. operations merged October 1 st , 2016 Large Merchant Packaged gas Industries bulk Air Liquide at a glance 9 The world leader in gases, technologies and services for Industry and Health
Expected Synergies > US$300m Cost Synergies Revenue Synergies >70% • Cross-selling PROCESS • Product availability CYLINDER BULK BACK & OPERATIONS OPERATIONS OFFICE PROCUREMENT • Gas applications • Small on-site generators Timeline for delivery of synergies 2016 2017 2018 2019 Costs Synergies Revenue Synergies Air Liquide at a glance The world leader in gases, technologies and services for Industry and Health 10
3 NEOS 2016-2020 A Customer-Centric Transformation Air Liquide at a glance The world leader in gases, technologies and services for Industry and Health 11
Air Liquide Ambition Lead our industry Deliver long-term performance Contribute to sustainability Air Liquide at a glance The world leader in gases, technologies and services for Industry and Health 12
Strategy: a Customer-Centric Transformation Profitable Growth over the Long-term For o Customer experience Operational Excellence o Cost competitiveness Selective Investments o Aligned with Air Liquide new business profile o Core Open Innovation o Disruptive o Digital workplace Network Organization o Speed o Best practices Air Liquide at a glance The world leader in gases, technologies and services for Industry and Health 13
Financial Objectives Efficiencies >€300m on average/year (2) + Airgas synergies >$300m +6% to +8% CAGR 2016-2020 (1) >10% Maintain “A” range rating after 5-6 years Capex/Sales 2017-2020: 10% to 12% (1) Including Airgas scope effect in 2017 contributing +2% to the CAGR (2) Over the 2017-2020 period 14 Air Liquide at a glance The world leader in gases, technologies and services for Industry and Health
Corporate Sustainability Objectives For or better better en environm onmen ent For or better etter hea ealth th e.g. e.g. • Foster clean • Help customers lower mobility GHG* emissions • Develop Healthcare • Grow with reduced carbon intensity e.g. • Continue to improve Safety • Do business responsibly • Extend Air Liquide Foundation *GreenHouse Gas Air Liquide at a glance The world leader in gases, technologies and services for Industry and Health 15
4 FY 2017 Highlights Air Liquide at a glance The world leader in gases, technologies and services for Industry and Health 16
Highlights Sales reached a new level in 2 nd half with improved operating margin Increased dividend proposal Strong cash-flow, reduced net debt and continued improvement in ROCE Airgas synergies ahead of plan NEOS, delivering in the short-term and investing for the long-term Air Liquide at a glance 17 The world leader in gases, technologies and services for Industry and Health
Improved Performance Step-up in sales growth in 2 nd half Improved Operating Margin (1) Excluding Energy Impact 5% + 70 bps 4% 4% 17% 3% 16.8% 3% Excl. energy impact 2% 2% 16.5% As published 1% 1% 16% 16.1% 0% 0% 2016 2017 Q1 17 Q2 17 Q3 17 Q4 17 Comparable sales growth Group 15% 2016 2017 Gas & Services (1) Group margin vs. 2016 adjusted group margin Air Liquide at a glance 18 The world leader in gases, technologies and services for Industry and Health
Increased Dividend Proposal Net Profit Dividend Growth: +12% (2) € 2.65 € 2.2 bn 20 yrs 2,8 CAGR 2,4 + 9.5 % Dividend (1) 2,0 As published in € per share 1,6 1,2 0,8 + 19.3 % + 10 % 0,4 0,0 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 As published Excluding non-cash non-recurring items & taxes (1) 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 (2) Subject to approval at the combined shareholders’ meeting scheduled for 16 May 2018 Air Liquide at a glance 19 The world leader in gases, technologies and services for Industry and Health
Improved Cash Flow and Balance Sheet Reduced Net Debt and Gearing Continued Improvement in ROCE Excl. 2017 positive impact on net profit of non-cash one-off items 151% <25> 160% 10.3% >10% 140% 10% <20> 120% 80 % 90% 100% (1) 7.7 % Gearing <15> 80% 80% <13.4> comfort 8% 7.4% 60% 60% range 57% 6.9% <10> 40% 20% 6% <5> 0% Dec. 15 Dec. 16 June 17 Dec. 17 2021/22 Dec. 15 June 16 Dec. 16 Dec. 17 adjusted NEOS In €bn Airgas Airgas objective acquisition Net debt Gearing acquisition (1) As published 2017 ROCE = 8.2% Air Liquide at a glance 20 The world leader in gases, technologies and services for Industry and Health
Airgas Synergies Ahead of Plan Synergies US$40m ahead of initial 2017 target US$ Cost synergies delivered faster 215 m Cumulated synergies end of 2019: in excess of US$300m Cumulated Synergies pace and higher level of cost synergies Dec. 2017 revenues synergies ramping Leveraging the Airgas model Expansion of customer centric management in the Group Air Liquide at a glance 21 The world leader in gases, technologies and services for Industry and Health
Delivering in the Short- Term… Mega trends Energy & Healthcare Digital Group Smart Innovative Biogas Operations Strategic (SIO) asset review Voice of the Energy Customer efficiency (VoC) New organization E-health E-business websites Air Liquide at a glance 22 The world leader in gases, technologies and services for Industry and Health
… and Investing for the Long -Term Research & Innovation Energy Transition Development • Renewal of R&D • 2017 ~ €290m • Hydrogen Council centers spending in innovation • CO 2 capture Over 3 years • ALIAD: cumulative ~ € 80m investments in Cumulative €130m start-ups investments Digital ● Data analytics ● Transforming operations Air Liquide at a glance 23 The world leader in gases, technologies and services for Industry and Health
5 Focus on Q4 2017 Sales Air Liquide at a glance 24 The world leader in gases, technologies and services for Industry and Health
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