Air Liquide 2017 Annual Results Presentation

Full Year 2017 Results
A Step Change in Sales with

Improved Performance
Airgas Synergies Ahead of
Plan
Paris, 15 February 2018

Agenda
1. Highlights
2. 2017 performance
3. 2018 priorities and outlook
2 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
Highlights
Benoît Potier
Chairman & Chief Executive Officer
Highlights
 Sales reached a new level in 2nd 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
Improved Performance
Step-up in sales growth in 2nd half Improved Operating Margin(1)

Excluding Energy Impact
5%
+70bps
4% 4%
3% 17%
3% 16.8% 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%

Gas & Services 2016 2017
(1) Group margin vs. 2016 adjusted group margin
Increased Dividend Proposal
Net Profit Dividend Growth: +12%

(2)
€2.65
€2.2bn 2,8 20 yrs
CAGR
2,4
Dividend(1) 2,0 +9.5%

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
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
151% one-off items
<25> 160%
10.3% >10%
140%
10%
<20> 120%
90% 80% 100% (1)
<15> 80% Gearing

80% 7.7%
<13.4> comfort 8%
60%
60% range 7.4%
57% 6.9%
<10> 40%
20%
6%
<5> 0% Dec. 15 Dec. 16 June 17 Dec. 17 2021/22
In €bn Dec. 15 June 16 Dec. 16 Dec. 17 adjusted NEOS
Airgas Airgas objective
acquisition Net debt Gearing acquisition
(1) As published 2017 ROCE = 8.2%
Airgas Synergies Ahead of Plan
Synergies US$40m ahead of initial 2017 target
 Cost synergies delivered faster US$

 Cumulated synergies end of 2019: 215m
 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
Delivering in the Short-Term…
Mega trends
Energy & Healthcare Digital Group
Smart
Biogas Innovative
Operations Strategic
(SIO) asset
review
Voice of
Energy the
efficiency Customer
(VoC) New
organization
E-health
E-business websites
9 15 February 2018 Full Year 2017 Results

… and Investing for the Long-Term
Research &
Innovation Energy Transition
Development
• Renewal of R&D • 2017 ~€290m • Hydrogen Council
centers spending in innovation
• CO2 capture
 Over 3 years • ALIAD: cumulative
 Cumulative €130m
~€80m investments in
investments start-ups
Digital
● Data analytics ● Transforming operations
2017 Performance
Fabienne Lecorvaisier
Executive Vice President &
Chief Financial Officer
Sales Growth Accelerating in G&S, E&C Stabilizing
(1) Refer to appendix for definitions
Better Economic Environment
Step-up in IP growth,
expected to stabilize in 2018 Negative FX Impact(1)
Industrial Production Year on Year in % (3-month rolling average)
-1.6%
-5.4%
FY 2017 Q4 2017
Low Energy impact in Q4(1)
+1.5%
+0.5%
FY 2017 Q4 2017
(1) On Group sales, based on 2016 adjusted sales
Key Growth Drivers in Q4 2017
+12%
+11%
+8 %
+6 % +7 %
+5%
INDUSTRIAL AMERICAS GLOBAL ASIA DEVELOPING ELECTRONICS

MERCHANT MARKETS & ECONOMIES
Comparable sales growth TECHNOLOGIES
Base Business Contribution Firming-Up
G&S Quarterly Growth Analysis
+14% +31% +29%
19
START-UPS
in FY17
 Strongest base
business since
Q1 2014
(1) Comparable growth based on 2016 adjusted sales
Q4 - Accelerating Americas, Sustained IM in Europe
+31%
FY as
published
AMERICAS EUROPE
FY 2017 FY 2017
€8,150m €6,776m
Excluding the impact of the one–off in Q4 2016

G&S Comparable Sales Growth
Strong IM and LI in Americas Improved underlying activity

• LI: rebounding after hurricanes • LI: solid H2 demand; high comparison effect
• IM: growth accelerating to >+6% • IM: sustained growth above +3%; bulk and
• EL: dynamic Advanced Materials, low E&I cylinder volumes up
• Strong HC in Latin America and Canada • Solid HC, still low contribution from
acquisitions
Q4 - Very Strong Asia and Middle-East
MIDDLE-EAST
AS I A - P AC I F I C & AF R I C A
FY 2017 FY 2017
€4,081m €635m
Very good momentum in all WBLs High growth in all WBLs

• LI: ramp-ups in China, high volumes • LI: high loading at Yanbu (KSA); major
• IM: China driving growth with strong volumes start-up in South Africa end December
and pricing; low equipment sales in Japan • IM: volumes improvement throughout
• EL: accelerated growth, strong Carrier Gases, the region
dynamic Advanced Materials, high E&I • Strong HC in South Africa
Q4 - IM Driving Growth, LI Outlook Positive
+22%
FY as published
INDUSTRIAL L AR G E
M E R C H AN T I N D U S TR I E S
FY 2017 FY 2017
€9,261m €5,336m

Continued increase in IM High volumes offset by Q4 2016 one-off
• Accelerating in North America • High air gases and H2 volumes
• Very strong China, dynamic in Americas
developing economies • Ramp-ups in China
• All end-markets up • Major start-up in South Africa
• Firming pricing, +1.7% • Europe: sales slightly up excl.
exceptionals
Q4 - Very Dynamic HC and EL
+9%
FY as published
H E AL T H C AR E E L E C TR O N I C S
FY 2017 FY 2017
€3,401m €1,644m
Steady activity, high contribution from acquisitions Double-digit growth in Asia
• Very strong Americas • Ramp-ups in Carrier Gases

• Dynamic development in Asia • New contracts in Asia, high E&I
• High growth in Medical Gases • Strong Advanced Materials
Low E&C, Developing GMT
Sales and Order intake(1) – in €m
500 500
E&C GMT
400 400
300 300
200 200
100 100
0 0
H1-15 H2-15 H1-16 H2-16 H1-17 H2-17 H1-15 H2-15 H1-16 H2-16 H1-17 H2-17
Sales Order intake
Sales Order intake
(1) Group and third-party order intake
Improved OIR Margin in line with NEOS
Efficiencies Above NEOS Target
FY 17 Efficiencies NEOS Cumulated Efficiencies
>€1,200m
2020
>€900m
€ 2019
323m >€600m
2018
€ 323m +€
2017 23m
2017 Airgas Cumulated Synergies Ahead of Plan
Initial(1)
Update
target
US$
>300m
215m 2019
>300m
270m
>235m
 Costs ~US$190m 2018 215m
+US$
 Revenue ~US$25m
2017
>175m
40m
• 2017 costs synergies US$40m above
initial target
 Higher procurement synergies
 Cylinder management integration 45m 45m
2016
faster than expected
(1) Defined in 2016 In US$ In US$
Positive Non-cash Exceptionals, Net Profit Recurring +10%
Recurring FY 2017 = FY 2017 excluding non-cash one-off items

FY 2016 Earnings Per Share adjusted for free share attribution of October 2, 2017.
2017 Non-Cash Exceptional Items and Taxes
 Extended strategic review of assets portfolio

 2017 impact of U.S. tax reform
 Tax rate adjustment on deferred taxes
 Repatriation tax
 Impact of U.S. tax reform onwards
2018: US$50m to US$70m tax reduction
Significant Debt Reduction
GEARING
CASH FLOW
90%
+15% GEARING
80%
Net Debt Net Debt

31 Dec. 2016 31 Dec. 2017
(1) Including acquisitions, transactions with minority shareholders, net of divestitures.

(2) Including share purchases and capital increases.
Selected Investments for the Future
Investment 2017 Investment 2017 Start-up/Ramp-up

Opportunities(1) Decisions(1) Sales Growth
12-month portfolio Contribution
€ € €
2.1bn 2.6bn 190m
• Continued active bidding • Long-term contracts • Above the €170m

• Small to medium size projects • 2 take-overs forecasted
• Americas 1st geography, then • EL contracts in Asia and Americas • 19 start-ups including
Europe and Asia • Acquisitions in HC and IM 1 major in AME
accelerating in H2
(1) See definitions in appendix
Stable Backlog despite Major LI Start-Up in Q4
Investment Backlog(1) in €bn
Increasing Investment Decisions
1000
800
600
400
200
€
0.8bn 0
In €m Q1-17 Q2-17 Q3-17 Q4-17
Yearly sales backlog(1)

after full ramp-ups
(1) See definitions in appendix
Starting-up Major LI Units in a Dynamic Environment
2018
2017
Q1 Q2 Q3 Q4
Sasol Fujian OCI Pemex Chinese Electronics

RSA Shenyuan U.S. Mexico Project Projects
China Asia
>€
 2018 forecasted additional sales 370m
 Increased bidding activity on new projects
2018 Outlook
 Step change in sales  Deliver major LI start-ups

2017 with improved 2018  Continue to focus on growth &
performance
operational excellence
 Airgas synergies ahead
 Pursue business transformation;
of plan
leverage the Airgas model
 Moving forward with
 While investing for the future
NEOS
“Assuming a comparable environment, Air Liquide is confident in its
ability to deliver net profit growth in 2018, calculated at constant
exchange rate and excluding 2017 exceptionals(1).”
(1) exceptional non-cash items having a net positive impact on 2017 net profit
FY 2017
Appendix
Adjusted Sales Used as a Comparison Basis (1/2)
F Published growth
E Comparable growth (2)
As of
January 1st, 2016
A B C D
Published Airgas Airgas Adjusted Published

2016 (1)
consolidated divestments Air Liquide 2017
2016
(1) Excluding Air Liquide Welding and Aqua Lung
(2) Excluding currency, energy price fluctuation and significant M&A impacts
Adjusted Sales Used as a Comparison Basis (2/2)
Published 2016
Published 2016 Air Liquide sales excluding Air Liquide Welding and Aqua Lung
A excluding Air Liquide
(IFRS 5, discontinued operations)
Welding and Aqua Lung
Airgas consolidated Published 2016 Airgas sales with divestments fully completed as of
B - Airgas divestments January 1st, 2016
Adjusted Air Liquide
C sales
2016 starting point: A + B
D Published 2017 Published 2017 Air Liquide sales
Growth between 2016 adjusted Air Liquide sales and published 2017 sales
E Comparable growth
D excluding change, energy and significant M&A versus C
Growth between published 2016 Air Liquide sales, excluding Air Liquide Welding
F Published growth
and Aqua Lung, and published 2017 Air Liquide sales
D versus A
2016 comparable sales growth excluding currency, energy price fluctuation and Airgas impact
FY 2017 G&S Revenue Breakdown by Region
EUROPE
€6.8bn ASIA-
AMERICAS
PACIFIC
€8.1bn €4.1bn
€19,642m
Industrial Merchant Large Industries Healthcare Electronics
Consolidated P&L
(1) FY 2016 Basic earnings per share adjusted for the free share attribution of October 2, 2017
Operating Margin (OIR/Revenue)
FY 2017 operating margin excluding energy improved +70bps compared to adjusted FY 2016
NB: 2016 figures have been restated to account for IFRS 5, discontinued operations.
Consolidated Balance Sheet Simplified - In €m
* Including fair value of derivatives
Cash Flow Statement
* PPE: Property, plant and equipment.
Impact of Currency and Energy on G&S Revenue
Refer to appendix for definitions

Revenue Analysis by Quarter and by Business Line

Revenue Analysis by Quarter and by Geography

G&S Revenue Growth by Quarter and by Impact

Americas
Q4 Gas & Services Sales: €1,931m
INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE ELECTRONICS
• IM accelerating in U.S. • Back to growth following • Dynamic South America: • Very Strong Advanced
• Bulk and cylinder volumes up hurricanes Brazil and Argentina Materials
• Positive pricing • High air gases and H2 • Canada: solid growth • Lower E&I sales vs.
volumes high Q4 2016
• All end-markets positive
• Very strong growth in South
• Hardgoods significantly up America and Canada
(1)

(2) Excluding impact of energy and compared to the adjusted 2016 operating margin
Europe
INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE
• Despite 1 less working day, • Decline as expected due to high • Solid Healthcare
positive Q4 growth comparison effect – customer • Lower M&A, tariff pressure
indemnity
• Broad-based strength, especially • Medical gases impacted by 1 less
Eastern Europe • Solid H2 demand working day
• Bulk and cylinder volumes up • Eastern Europe impacted by • Solid Hygiene and Specialty Ingredients
stoppage in Ukraine
• All end-markets growing
(1)
(2)

(2) Excluding impact of energy
Asia-Pacific
INDUSTRIAL MERCHANT LARGE INDUSTRIES ELECTRONICS
• China again >+15% with very • Several ramp-ups in China • Double digit growth (China,
strong growth both in cylinders • High air gas volumes in Korea, Japan, Singapore)
and bulk Singapore • Very dynamic Advanced
• Strong pricing • Positive Australia Materials
• Flat Australia, decreasing Japan • Strong growth in carrier gases
• High level of E&I sales
(1)
(2)

(2) Excluding impact of energy
Industrial Merchant Pricing

Investment Cycle – Definitions
● Investment opportunities at end of the period
– Investment opportunities under consideration by the Group for decision within 12 months.
– Industrial projects with investment value > €5m for Large Industries and > €3m for other business lines.
– Includes asset replacements or efficiency projects. Excludes maintenance and safety.
● Investment backlog at end of the period

– Cumulated industrial investment value of projects decided but not yet started.
– Industrial projects with value > €10m, including asset replacements or efficiency projects, excluding
maintenance and safety.
● Sales backlog
– Cumulated expected sales per year generated by the current investment backlog after full ramp-up.
● Decisions of the period

– Cumulated value of industrial and financial investment decisions.
– Industrial, growth and non-growth projects including asset replacements, efficiency, maintenance and
safety.
– Financial decisions (acquisitions).
Gas & Services Industrial Capex by Geography
G&S FY 2017 capex(1) G&S capex(1) / sales
€1.9bn
(1) Gross industrial investments.
Financing Structure
As of December 31, 2017
(1) Others: Finance leases and put options granted to minority shareholders.
Regular and Sustained Performance
21 000
Revenue (in €m) +6.0% EPS(1) (in €) +7.5%
18 000 C AG R C AG R
5,0
15 000 over 30 years
(2) (2)
over 30 years
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
4 500
Cashflow (in €m) +6.9% 3,0 Dividend(1) (in € per share) +8.6%
4 000 C AG R 2,5 C AG R
3 500
over 30 years
(2) (2)
over 30 years
3 000 2,0
2 500
1,5
2 000
1 500 1,0
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.
For further information, please contact:
Investor Relations Communication

Aude Rodriguez  + 33 (0)1 40 62 57 08 Anne Bardot  + 33 (0)1 40 62 50 93
Louis Laffont  + 33 (0)1 40 62 57 18 Annie Fournier  + 33 (0)1 40 62 51 31
Ludmilla Binet  + 33 (0)1 40 62 57 37
Jérôme Zaman  + 33 (0)1 40 62 59 38
Joseph Marczely  + 1 610 263 8277
www.airliquide.com Follow us on Twitter @AirLiquideGroup
Corporate Headquarters:
75, Quai d’Orsay
L’Air Liquide S.A. 75321 Paris Cedex 07
Corporation for the study and application of processes developed by Georges Claude Tel : +33 (0)1 40 62 55 55
with registered capital of 2,356,439,277.50 euros RCS Paris 552 096 281

Air Liquide 2017 Annual Results Presentation

Enviado por

Dados do documento

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Air Liquide 2017 Annual Results Presentation

Enviado por

Direitos autorais:

Formatos disponíveis

Full Year 2017 Results

A Step Change in Sales with

Paris, 15 February 2018

3. 2018 priorities and outlook

 Sales reached a new level in 2nd half with

Step-up in sales growth in 2nd half Improved Operating Margin(1)

Comparable sales growth Group 15%

(1) Group margin vs. 2016 adjusted group margin

Net Profit Dividend Growth: +12%

Dividend(1) 2,0 +9.5%

<15> 80% Gearing

Synergies US$40m ahead of initial 2017 target

 Cost synergies delivered faster US$

 revenues synergies ramping

Expansion of customer centric management in the Group

Energy & Healthcare Digital Group

9 15 February 2018 Full Year 2017 Results

● Data analytics ● Transforming operations

(1) Refer to appendix for definitions

Low Energy impact in Q4(1)

INDUSTRIAL AMERICAS GLOBAL ASIA DEVELOPING ELECTRONICS

+14% +31% +29%

(1) Comparable growth based on 2016 adjusted sales

Excluding the impact of the one–off in Q4 2016

Strong IM and LI in Americas Improved underlying activity

G&S Comparable Sales Growth

Very good momentum in all WBLs High growth in all WBLs

G&S Comparable Sales Growth

G&S Comparable Sales Growth

Steady activity, high contribution from acquisitions Double-digit growth in Asia

• Very strong Americas • Ramp-ups in Carrier Gases

Recurring FY 2017 = FY 2017 excluding non-cash one-off items

 Extended strategic review of assets portfolio

Net Debt Net Debt

(1) Including acquisitions, transactions with minority shareholders, net of divestitures.

Investment 2017 Investment 2017 Start-up/Ramp-up

• Continued active bidding • Long-term contracts • Above the €170m

Yearly sales backlog(1)

(1) See definitions in appendix

Sasol Fujian OCI Pemex Chinese Electronics

 Step change in sales  Deliver major LI start-ups

E Comparable growth (2)

Published Airgas Airgas Adjusted Published

Industrial Merchant Large Industries Healthcare Electronics

* Including fair value of derivatives

* PPE: Property, plant and equipment.

Refer to appendix for definitions

Refer to appendix for definitions

Refer to appendix for definitions

Refer to appendix for definitions

(1) Refer to appendix for definitions

(1) Refer to appendix for definitions

(1) Refer to appendix for definitions

Refer to appendix for definitions

● Investment backlog at end of the period

● Decisions of the period

G&S FY 2017 capex(1) G&S capex(1) / sales

(1) Gross industrial investments.

Investor Relations Communication

www.airliquide.com Follow us on Twitter @AirLiquideGroup

Você também pode gostar