NEOS 2016-2020 A Customer-centric Transformation Capital Markets Day, July 6th, 2016 - Summary
Air Liquide proven agility and strengths to build on opportunities China Sales € 16.4bn Hydrogen Electronics Home Healthcare Large Industries Sales € 3.0bn Rise of Out of High-tech Cleaner Developing Manufacturing Hospital devices fuels economies Mid Early Mid Early Mid Early Mid 1980s 1990s 1990s 2000s 2000s 2010s 2010s 2
Airgas acquisition: a Major Step Change Sales Customer reach > € 20bn +30% x2 Customers 2 million Cylinders 22 million x2 Larger base for value creation 3
A New Group CUSTOMER DIGITAL INNOVATION 4
Value Creation Through Integrated Model Customers & Patients E&C* Large Industries Industrial Merchant Electronics Healthcare Innovation *Engineering & Construction 5
Both Growth and Resilience Air Liquide Sales & OIR versus Worldwide Industrial Production over 10 Years 200 (Base 100 in 2005) 190 180 170 160 150 140 130 120 110 100 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Worlwide IP* Sales OIR *Source: coe-rexecode 6
Solid Foundations, Unique Differentiating Factors Large Industries Industrial Merchant with #1 #1 50% more sales than #2 player High density: national market leader for >70% of sales > € 30bn sales ensured with 15 years Take-or-Pay contracts #1 in e-commerce business Electronics Healthcare #1 #1 in China High density: >1.3 million patients Technical Leadership in Advanced Materials Strong Home Healthcare geographical footprint (35 countries) Innovation/Global Markets & Technologies Engineering & Construction #1 in Advanced Technologies Proprietary technologies and E&C capabilities #1 in biomethane (purification, > 50 stations) Corporate Venture with portfolio of 25 startups 7
Air Liquide Ambition Lead our industry Deliver long-term performance Contribute to sustainability 8
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 9
Majors trends 10
Major trends in a changing environment Urbanization Waste Evolving energy Ageing economics management population Energy and War for talents Rise of chronic Sharing Changes in Global diseases Environment Health and economy Low inflation and low warming Healthcare wellness cost of money Sustainability Transition Moderate and balanced Evolution of Healthcare systems world growth New distribution Rise of platforms Transparency across models the value train Economic transition in industries in China Rebalance of Digitalization Digitization Customer experience New purchasing geopolitical powers and satisfaction behaviors Value migration: Big Data Open innovation rise of services 11
Energy and Environment Hydrogen for clean fuel Transition Oxygen for energy efficiencies Photovoltaics LNG technologies Biogas Hydrogen mobility Emissions control Recycling 12
Digitization New ways of working Supply Chain e-Commerce Efficiencies e-Healthcare Smart & Innovative Operations (SIO) More Components Higher performance through Advanced Materials 13
Changes in Healthcare Medical gases for hospitals New geographies e-Healthcare Disinfectants & Home Healthcare antiseptics services for chronic diseases Offer for Pharmaceuticals Food preservation 14
Our new company program for 2016-2020
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 (1) Including Airgas scope effect in 2017 contributing +2% to the CAGR 16 (2) Over the 2017-2020 period
Key Success Factors for Growth and Resilience IDEAL FOOTPRINT TO WIDE AND STRONG SOLID CONTRACT BALANCED ACTIVITIES CAPTURE GROWTH CUSTOMER BASE STRUCTURE Present in over Serving Sales 80 90 % 55 % >50 % IP driven countries of industrial segments annual sales >50 % 80 % secured as of 45 % January 1 st of AL growth of top 50 customers other dynamics (2010-2015) from top 10 growing economies are leaders in their market 17
Increased Customer Reach Field Sales 1 million customers Specialists in 75 countries Stores ≈ 850 + Telesales Experts > 500 1 million customers in 1 country (USA) Digital Platform * Bulk and Specialty Gases, Safety, Construction, Weld Process, Healthcare & Life Sciences 18
Efficiencies Boosted by Digitization of Operations Reinforced Higher Level of Predictive Big Data Real-time Remote Maintenance Analytics Optimizations Operation 1 billion of >85% of LI 14 Operation Control Target zero unplanned datapoints archived units connected Centers worlwide shutdowns every day 19
Corporate Sustainability Objectives For better health For better environment e.g. e.g. • Foster clean mobility • Help customers lower • Develop Healthcare GHG* emissions • Grow with reduced carbon intensity e.g. • Continue to improve Safety • Do business responsibly • Extend Air Liquide Foundation *GreenHouse Gas 20
NEOS Strategy: a Customer-centric Transformation Contribution to NEOS Customer Benefits o Operational Excellence Large Growth and cash o Customer competitiveness Industries Customer reach o Proximity Industrial o Customer experience & competitiveness Merchant o Patient-centric services Expansion Healthcare o Caring for more patients o Technology partner Premium value Electronics o Flawless reliability and quality o Innovation for energy transition Global New businesses o Customer needs anticipation Markets & Technologies
Relying on a New Balanced Mix 2020 Gas & Services Sales Geography Mix Activity Mix Large Asia-Pacific Middle-East & Africa Industries Industrial Europe Merchant Healthcare Americas Electronics 22
Leveraging on Digital New ways of working Managing assets and optimizing production & logistics Customer reach through e-commerce 23
Engaging the Whole Organization Network Hub organization - Hub 68,000 employees 1 base Hub Hub 20 clusters 24
NEOS 2016-2020 A Customer-centric Transformation Capital Markets Day, July 6th, 2016 - Summary
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