H1 2018 Activity Strong Growth in Line with NEOS Solid Performance Business Development Acceleration Paris, 30 July 2018
Agenda 1. Strong growth in line with NEOS 2. Solid performance and strong cash flow 3. Business development acceleration and quality investment opportunities 4. Confirmed 2018 guidance 2 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Strong Growth in Line with NEOS Benoît Potier Chairman & Chief Executive Officer 3 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Strong Growth and Solid Performance in H1 2018 Growth in all + 5.8 % + 12.1 % As published Business Lines Sales (1) Net Profit Driven by efficiencies + 30 bps + 11.1 % From operations and synergies G&S Operating Margin (2) Cash Flow (3) (1) Comparable growth (2) Excluding energy impact (3) After change in Working Capital Requirements 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health 4
Business Development Acceleration… Group Sales Comparable Growth Investment Decisions - in €bn 2.9 bn + 5.8 % 6% 5% + 4.0 % 1,4 4% 3% 1,2 2% 1% 0% 1,0 H2 16 H1 17 H2 17 H1 18 H2 16 H1 17 H2 17 H1 18 -1% 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health 5
… While Deploying Key Strategic Initiatives … Large Industries Industrial Merchant � Digital operations � Web portals in 3 zones in place � New investments � Increased density in key basins acquisitions in China � Airgas fully integrated Healthcare Electronics � e-Health � Ramp up of etching gases running solutions � New contracts � Entry in new countries Japan and Taiwan Colombia and Saudi Arabia 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health 6
… Supported by � Customer-centric initiatives � Integrated digital solutions � Sustained innovation strategy 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health 7
Solid Performance and Strong Cash Flow Fabienne Lecorvaisier Executive Vice President & Chief Financial Officer 8 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Highlights � Group sales up ~+6% � Strong momentum in all activities � High base business growth � Improved G&S OIR margin � Strong operating cash flow and improved ROCE � Quality investment opportunities 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health 9
Growth at the Top of NEOS Range Note: NEOS sales growth objective between +6% and +8% CAGR 2016-2020, including Airgas scope effect in 2017 contributing +2% to the CAGR 10 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Favorable Global Environment, Softening FX Headwind Lower Negative FX Impact (1) in Q2 High Industrial Production Level Industrial Production Year on Year in % (3-month rolling average) (2) - 3 to - 4 % - 6.8 % Estimated H1 2018 FY 2018 (1) On Group sales (2) With an annual average EUR/USD exchange rate estimated at 1.19 11 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Accelerating Growth Drivers in Q2 + 14 % + 4.5 % INDUSTRIAL MERCHANT + 11 % + 5 % + 7 % HEALTHCARE + 8 % ELECTRONICS AMERICAS DEVELOPING ASIA ECONOMIES Comparable G&S sales growth 12 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Confirmed High Base Business Growth G&S Quarterly Growth Analysis +14% +31% +29% Strongest base business since Q2 11 (1) Comparable growth based on 2016 adjusted sales 13 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Q2 - Very Robust Growth in Americas, Solid Europe AMERICAS EUROPE H1 2018 H1 2018 €3,874m €3,464m G&S Comparable Sales Growth Dynamic IM and HC, high EL Very high organic HC and solid IM • LI : H 2 customer turnarounds in the U.S. • LI : numerous H 2 customer turnarounds • IM : high growth , broad-based end market • IM : solid despite CO 2 shortage; improving contribution pricing • HC : dynamic in the U.S., Canada and South America • HC : strong in Germany, South Europe and Scandinavia • EL : thriving E&I , high carrier gases • Dynamic Developing Europe 14 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Q2 - Booming Asia, Major Start-Up in South Africa MIDDLE-EAST ASIA-PACIFIC & AFRICA H1 2018 H1 2018 €2,107m €324m G&S Comparable Sales Growth Very strong momentum in all activities Full impact of major start-up in LI • LI : high volumes in China, Singapore, South Korea • LI : Sasol start-up in South Africa in Q4 17 and Australia • IM : solid growth in South Africa and Egypt • IM : China driving growth with strong pricing • HC : strong; contribution from acquisition and volumes ; improving Australia in Saudi Arabia • EL : buoyant activity in all segments, very high E&I 15 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Q2 - Solid IM, Turnarounds in LI H1 18 : +4% H1 18 : +5% +6% +4.5% +4,5% +4% +4% INDUSTRIAL LARGE MERCHANT INDUSTRIES H1 2018 H1 2018 €4,501m €2,718m Q1 18 Q2 18 Q1 18 Q2 18 G&S Comparable Sales Growth Robust activity Strong contribution from SU/RU • Strong Manufacturing and • Ramp-ups in South Africa Metal Fabrication markets and China • CO 2 shortage in Europe • Strong air gases volumes to Chemicals market • Pricing +1.7% • H 2 customer turnarounds in Europe and the U.S. 16 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Q2 - Very Dynamic HC and EL H1 18 : +6% H1 18 : +7% +8% +7% +6% +5% HEALTHCARE ELECTRONICS H1 2018 H1 2018 €1,714m €836m Q1 18 Q2 18 Q1 18 Q2 18 G&S Comparable Sales Growth Very strong organic activity Double-digit growth in Asia • Dynamic HHC despite pricing pressure • Very strong IC and FPD markets • High Medical Gases • Booming E&I • Strong Hygiene and Specialty • High growth of gases and Ingredients materials 17 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Stronger Order Intake in E&C, Very Dynamic GM&T Sales and Order intake (1) – in €m E&C GM&T 200 200 (2) + 33 % (2) + 4 % 100 100 0 0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Sales Order intake Sales Order intake (1) Group and third-party order intake (2) Comparable growth 18 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Improved G&S OIR Margin 19 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Efficiencies above NEOS Target H1 18 Efficiencies NEOS Cumulated Efficiencies >€1,200m 2020 >€900m 2019 € 174 m >€600m 2018 € 497 m Target € 323 m 2017 20 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Airgas Synergies Further Accelerated US$300m now by mid-2019 Initial Update (1) target >300 m Mid - >300m 2019 US$ 2019 > 280 m 260 m >235m 2018 215m >175m 2017 � Costs ~US$215m � Revenue ~US$45m 45m 45m • H1 2018 synergies = US$45m 2016 In US$ In US$ (1) Defined in 2016 21 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Net Profit +12% 22 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Strong Cash Flow CASH FLOW + 11.1 % Gearing (1) 90 % Gearing Gearing (1) 80 % 79 % (1) June 30 gearings adjusted for dividend seasonality. (2) Including acquisitions, transactions with minority shareholders, net of divestitures. (3) Including share purchases and capital increases. 23 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Continued Improvement in ROCE ROCE 10.3% >10% 10% (1) 8.0 % 7.7% (1) 8% 7.4% 6.9% 6% Dec. 15 Dec. 16 June 17 Dec. 17 June 18 2021/22 adjusted NEOS objective Airgas acquisition (1) Excluding 2017 positive impact on net profit of non-cash one-off items. 24 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Business Development Acceleration and Quality Investment Opportunities Fabienne Lecorvaisier Executive Vice President & Chief Financial Officer 25 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Recommend
More recommend
