2014 q1 activity - air liquide
TRANSCRIPT
2014 Q1 activity
Paris, April 24, 2014
Confirmed growth in a more favorable environment
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
2014 Q1 activityFabienne Lecorvaisier l Chief Financial OfficerParis, April 24, 2014
Confirmed growth in a more favorable environment
� Focus on Electronics
����
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue2
� Focus on Electronics
Selective investments����
Growth highlights
Gas &Services
GSI in developing economies
IndustrialMerchant
Electronics recovery
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue3
+14.0%Q1 2014
+4.4%Q1 2014
+10.3%Q1 2014
+5.7%Q1 2014
Sales growth, excluding currency, natural gas and significant M&A impacts. GSI: Gas & Services for Industries = Large Industries + Industrial Merchant + Electronics
Key figures
Sales in €mQ1 2013 Q1 2014 Q1 14/13
as published
Gas & Services 3,406 3,416 +0.3%
Engineering & Technology 147 175 +19.4%
Q1 14/13comparable (1)
+5.7%
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue4
Engineering & Technology 147 175 +19.4%
Other Activities 145 143 -1.7%
Group Total 3,698 3,734 +1.0% +6.2%
(1) Sales growth, excluding currency, natural gas and significant M&A impacts.
92% of sales protected from monetary risk
Q1 2014 G&S sales
EURUSDCADCNY 8%
83%Strong currencies
9%Related currencies
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue5
�FX impact limited to translation into Euro
CNYJPYGBPCHF
Other currencies
8%
�Matching cash flow and debt currencies
110
115
120
Continued outperformance in a more favorable environment
G&S comparable growth(1)
Air Liquide
World IP Index (2)
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
95
100
105
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2011 2012 2013 2014
6
2010
Base 100 in 2010 (1) Excluding currency, natural gas and significant M&A impacts (2) Source: Consensus Forecasts
� Positive signsin Euro zone
� Continuing growthin the USA
� Improvementin Japan
4.6% 4.4%
5.7%
5%
6%
7%
8%
G&S comparable growth(1)
Steady growth…
2012 2013 2014
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
4.0%
0.9%
1.6% 1.5%
4.0% 3.9%4.4%
0%
1%
2%
3%
4%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
(1) Excluding currency, natural gas and significant M&A impacts
7
Average +3.5%
Average +2.8%
3,0%
5,0%
7,0%
G&S quarterly growth analysis
...relying on stronger base business and robust start-ups
7start-ups
in Q1
2012 2013 2014
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue8
-3,0%
-1,0%
1,0%
Base business
Start-ups,Ramp-ups,Site takeovers,Small acquisitions
Significant M&A
8
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
G&S comparable growth(1)
Americas Middle-East & Africa���� ���� ����Asia-Pacific
3%
8%9%
11%12%
4%
7%
14%
17%16%
5%
12%
3%
Dynamic growth in Americas and Asia
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
(1) Excluding currency, natural gas and significant M&A impacts.
3%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
1%2%
4%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
3%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
9
� Chinese start-ups� Japan up 9%� Electronics recovery
� Strong LI accross the region
� Mexico ramp-up� Healthcare in South
America
� Instability in Egypt� Robust IM in Africa
despite argon sourcing
0,2%
2,2%1,5%
0,1%
6%
4%
Managing European markets
Healthcare
DevelopingEurope GSI
G&S comparable growth(1) in Europe
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
0,2% 0,1%
-0,2%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
(1) Excluding currency, natural gas and significant M&A impacts. GSI: Gas & Services for Industries = Large Industries + Industrial Merchant + Electronics
-2%
10
AdvancedEurope GSI
Western industrial business slightly upexcluding portfolio management and electricity impact
3%
5%
3% 3%
6%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
G&S comparable growth(1)
Large Industries�
Large Industries & Healthcare growing above 5%
Q1
38%
�Sound Oxygen and Hydrogen volumes
�4 start-ups�Developing economies up
+18%
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
3%
7% 7%
5% 5%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Healthcare�
(1) Excluding currency, natural gas and significant M&A impacts.
11
Q12014
18%
�Robust growth despite pressure on tariffs
�Developing economies now close to 10% of the business
36%
G&S comparable growth(1)
Industrial Merchant improving, Electronics recovering
Q12014
1%
4% 4% 4% 4%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Industrial Merchant��Pursued momentum in
developing economies�Strong quarter in Japan
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
8%
(1) Excluding currency, natural gas and significant M&A impacts.
12
2014
-6%
-4%
4%
9%10%
Electronics�
Q1 13 Q2 13
Q3 13 Q4 13 Q1 14
�Strong activity in the US and developing Asia
� Improvement in Japan
E&T order intake(1) Third party E&T sales8031,905
In €m In €m
448
516
667
500
750
500
750
Focus on executing projects
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
(1) Group and Third-party orders, including advanced Business and Technologies order intake
Regular progress of projects under execution
Mainly third party activityin Q1 2014
274 267
0
250
Q1 Q2 Q3 Q4 Q1
2013 2014
147 225 184247
175
0
250
Q1 Q2 Q3 Q4 Q1
2013 2014
13
Q1 Efficiency gains
Operating Cash flow (2)
Q1 2014 wrap-up
€ 69m
Comparable growth (1)
+6.2%
Group Sales Cost & Investments
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
Operating Cash flow
Net Industrial Capex
14
€ 484m
€ 471m
�More favorable environment
�Improving base business
�Start-ups and ramp-ups
(2) Operating Cash Flow after change in Working Capital Requirement(1) Excluding currency, natural gas and significant M&A impacts.
Focus on Electronics
Paris, April 24, 2014 Pierre Dufour l Senior Executive Vice-President
Enhanced strategic profile
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
8%of G&S
Revenues
EL: Managing business mix to reduce cyclicality
Carrier Gases
Specialty Gases
MarketDriver
New Investments
msi wafers(2)
m2 FPD
% EL Sales
42%
19%
20132003
28%
43%
Sensitivity toIndustry Cycles
Low
High
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue16
(1) ALOHA™ and Voltaix (2) million of square inches
Advanced ElectronicsMaterials(1)
Services
New nodes
New Investments
CustomerIntimacy
5%
18%
11%
19%
9%
Medium
High
Low
Equipment & Installations
EL: Increasing value through innovation
Valuedrivers
Air Liquide 2003-2013Improvement
Carrier Gases Energy efficiency-30% kWh per m 3
produced
Specialty GasesAdvanced Electronics
materials
Proprietary molecules:
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue17
ServicesComplete fluid
management and tracking
Specialty Gases materialsmolecules:
now 5% of sales
Equipment & Installations
High techequipment
Gross Margin x2 through portfolio
management
Higher value services
EL: Advanced Electronic Materials designed with customers
� A designer molecule (10 in production)
� Responding to specific requirements (100 molecules in pipeline)
� Built with leading customers and tool makers (16 US, 8 Japan, 6 Korea, 5 Europe)
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue18
5 Europe)
� Protected by 250 patents
offers
SalesSales
x5x5In the last In the last 6 years6 years
EL: Creating a more resilient, profitable business
In m€
Air Liquide Electronics sales
>14%>14%Operating Operating margin margin iin n
20132013
9%9%Sales Sales CAGRCAGR
1 200
1 500
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue19
0
300
600
900
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MarginMargin<9%<9%
In less than 20 years, Air Liquide Electronics has become...
�A growing business
�Less sensitive to industry cycles
�A technological partner closer to its customers
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue20
�More profitable
A recognized leader
Investment opportunities (1) Q1 2014Investment decisions (1)
Selective investmentsFabienne Lecorvaisier l Chief Financial OfficerParis, April 24, 2014
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue21
€ 3.6 bn € 300 m
(1) See definitions in appendix
� Industrials� Innovation
Strong investment backlog
€ 2.7bn
Decisions Start-upsInvestment backlog
Q1 2014
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue22
Dec 2011 Dec 2012 Dec 2013 Decisions Start-ups Investmen tbacklog
March 2014
€ 2.7bn€ 2.5bn
Sales in handafter full ramp-up
See definitions in appendix
€ 2.3bn€ 2.1bn
~ €1.2bn
Selective investments consistent with growth ambition
Past decisions(1)
2000
2500
3000
In €M
2014 guidance
Financial Target
EL, HCProgresssteadily
IMLoad existingcapacities
Trends
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue23
(1) Total Investment decisions (industrial and financial), all project sizes included. MSE = Maintenance, Safety and Efficiency investments
0
500
1000
1500
2008 2009 2010 2011 2012 2013
MSE Growth LI Growth IM Growth Others Financial
capacities
LI Return to average
MSE Maintain
2014 Outlook
■ Confirmed growth in a more favorable environment■ Selective investments
Q1 2014
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue24
Barring a degradation of the environment,Air Liquide is confident in its ability
to deliver another year of net profit growth in 2014
2014 objective
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue25
Appendix
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue26
Investment cycle - definitions
Investment backlog at end of the periodCumulated G&S industrial investment value of projec ts decided but not yet startedGas & Services industrial only projects, with value > €10M, including asset replacements or
Investment opportunities at end of the periodInvestment opportunities under consideration by the Group for decision within 12 monthsIndustrial projects with investment value > €5M for Large Industries and > €3M for other business lines. Includes asset replacements or efficiency projects. Excludes maintenance and safety.
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue27
Decisions of the periodCumulated value of industrial and financial investm ent decisions
Gas & Services industrial only projects, with value > €10M, including asset replacements or efficiency projects, excluding maintenance and safety.
- Industrial, growth and non-growth including asset replacements, efficiency, maintenance and safety projects- Financial (acquisitions or disposals) decisions
Sales in handCumulated expected sales per year generated by the current investment backlog after full ramp-up
3000
3250
3500
3750
in €m
+24
<47>
+0.3%published
3,406
+194
3,416
<161>
+0.7%
-4.7%-1.4%
Growth in Q1 2014 G&S revenue
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
2250
2500
2750
3000
Q1 2013 Comparable growth
Natural gas Currency Significant M&A Q1 2014
published growth
+5.7% comparable growth (1)
(1) Excluding currency, natural gas and significant M&A impacts
(1)
28
0
Impact of currency and natural gas on G&S revenue
In €m Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
€/USD
€/CAD
€/JP¥
Others
(3)
(2)
(40)
(20)
(10)
(5)
(55)
(27)
(30)
(16)
(74)
(82)
(26)
(17)
(65)
(77)
(22)
(25)
(35)
(87)
Total currency impact (65) (97) (202) (185) (169)
Currency
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue29
Natural Gas Impact (21) (8) (23) (37) 24
In €m
Average rate Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
€/USD
€/CAD
€/JP¥
1.32
1.33
121.9
1.31
1.34
129.0
1.32
1.38
131.0
1.36
1.43
136.6
1.37
1.51
140.8
Natural Gas
Revenue analysis by quarter (1)
Sales in €m Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q1 14/13 Q1 14/13 comparable (1)
Europe 1,769 1,778 1,745 1,766 1,701 - 3.8% - 0.2%
Americas 766 824 813 822 814 + 6.2% + 11.6%
Asia-Pacific 780 782 796 826 816 + 4.6% + 13.5%
Middle -East
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue30
Middle -East& Africa 91 95 90 94 85 - 6.9% + 2.9%
Gas & Services 3,406 3,479 3,444 3,508 3,416 + 0.3% + 5.7%
Engineering& Technology 147 225 184 247 175 + 19.4% + 23.7%
Other Activities 145 159 137 144 143 - 1.7% - 0.6%
Group Total 3,698 3,863 3,765 3,899 3,734 + 1.0% + 6.2%
(1) Excluding currency, natural gas and significant M&A impacts
Revenue analysis by quarter (2)
Sales in €m Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q1 14/13 Q1 14/13 comparable (1)
Large Industries 1,225 1,236 1,218 1,261 1,285 + 4.9% + 6.2%
Industrial Merchant 1,254 1,284 1,274 1,269 1,229 - 2.0% +4.4%
Healthcare 659 685 667 678 626 - 5.0% + 5.3%
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue31
Electronics 268 274 285 300 276 + 3.2% + 10.3%
Gas & Services 3,406 3,479 3,444 3,508 3,416 + 0.3% + 5.7%
Engineering& Technology 147 225 184 247 175 + 19.4% + 23.7%
Other Activities 145 159 137 144 143 - 1.7% - 0.6%
Group Total 3,698 3,863 3,765 3,899 3,734 + 1.0% + 6.2%
(1) Excluding currency, natural gas and significant M&A impacts
G&S Revenue growth by quarter (3)
Growth as published
NaturalGas
Currency Significant scope
Comparable growth (1)
Q2 2012 +4.9% +0.0% +4.6% -0.6% + 0.9%
Q3 2012 +6.5% -0.3% +4.9% +0.3% + 1.6%
Q4 2012 +8.2% +0.2% +1.8% +1.6% + 4.6%
Q1 2013 -1.1% -0.6% -1.9% +1.4% + 0.0%
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue32
Q1 2013 -1.1% -0.6% -1.9% +1.4% + 0.0%
Q2 2013 +2.5% -0.2% -2.9% +1.6% + 4.0%
Q3 2013 -1.3% -0.6% -5.8% +1.2% + 3.9%
Q4 2013 -2.1 % -1.0% -5.2% -0.4% + 4.4%
Q1 2014 + 0.3% +0.7% -4.7% -1.4% + 5.7%
(1) Excluding currency, natural gas and significant M&A impacts.
Q1 2014 Revenue breakdown by region
Americas: € 814M Asia: € 816MEurope: € 1,701M
Middle-East & Africa
AmericasEurope
Asia-Pacific
Gas & ServicesQ1 Revenue € 3,416M
50%
24%
24%
2%
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
Americas: € 814M Asia: € 816MEurope: € 1,701M
33
Large Industries Electronics HealthcareIndustrial Merchant
31%
37%
30%
2%
44%
39%
9%8%
34%
40%
5%
21%
Europe in Q1
Q1 Gas & Services sales: € 1,701m■ Industrial Merchant
� Continued growth in developing Europe
� Slightly negative pricing linked to reduced costs
■ Large Industries� Strong Oxygen for Steel� HyCO volumes
Industrial Merchant
Large Industries
Healthcare
Electronics
31%
37%
30%
2%
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
-4% -2% 0% 2% 4% 6% 8%
34 34
Industrial Merchant
Large Industries
Q1 14/13 Comparable change (1): -0.2%
-0.8%
-2.7%
(1) Excluding currency, natural gas and significant M&A impacts
� HyCO volumes� Cogen disposal impact� Lower electricity price
■ Healthcare� Home Healthcare volume growth � Tariff pressure on Hospitals sales� Solid hygiene growth� No acquisition
Healthcare+4.0%
Americas in Q1
Q1 Gas & Services sales: € 814M
Industrial Merchant
Large Industries
Healthcare
Electronics
44%
39%
9%8%
■ Industrial Merchant� Positive pricing, especially in South
America� High Liquid volumes
■ Large Industries� Strong HyCO volumes� Lower O2 volumes in Canada
(Steel)
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
0% 4% 8% 12% 16% 20% 24%
35
Q1 14/13 Comparable change (1): + 11.6%
+6.7%
+13.1%
+10.6% Healthcare
(Steel)� Natural Gas price increase
■ Healthcare� Strong Latin America
■ Electronics� Strong E&I� Voltaix contribution to ESG &
ALOHATM
+42.6% Electronics
Industrial Merchant
Large Industries
(1) Excluding currency, natural gas and significant M&A impacts
Asia-Pacific in Q1
Q1 Gas & Services sales: € 816M■ Industrial Merchant� China continued growth� Helium sales growth� Japan solid growth
■ Large Industries� Start-ups in China� HyCO and Oxygen volumes
Industrial Merchant
Large Industries
Healthcare
Electronics
34%
40%
5%
21%
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
0% 5% 10% 15% 20% 25%
36
Industrial Merchant
Large Industries
Q1 14/13 Comparable change (1): + 13.5%
+11.5%
+21.6%
+5.2%
� HyCO and Oxygen volumes
■ Electronics� Carrier gas & ESG growth
across the zone� Improving Japan� Start-up in Taiwan / China� ALOHATM strong contribution
Electronics
(1) Excluding currency, natural gas and significant M&A impacts
Industrial Merchant pricing
3,6%
0,5%
0%
4,4%
-0,2%
Americas
Europe
Q1 2014 FY 2013
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue37
1,8%
4,6%
1,1%
1,5%
5,2%
0%
Total Industrial Merchant
Middle-East and Africa
Asia-Pacific
Efficiency gains
In €M
0
20
40
60
80
Q1 2011 Q1 2012 Q1 2013 Q1 2014
Q1 2014 wrap-up
G&S sales
0
1
2
3
4
Q1 2011 Q1 2012 Q1 2013 Q1 2014
3.4 69In €Bn In €M
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue
Capex (1) Operating Cash flow (2)In €M In €M
0
100
200
300
400
500
600
Q1 2011 Q1 2012 Q1 2013 Q1 20140
100
200
300
400
500
Q1 2011 Q1 2012 Q1 2013 Q1 2014
38
499484
(1) Industrial and financial investment, excluding transactions with minorities, net of divestitures(2) Operating Cash Flow after change in Working Capital Requirement
Regular and sustained performance
0
2 500
5 000
7 500
10 000
12 500
15 000
19831985198719891991199319951997199920012003200520072009201120130
1
2
3
4
5
6
1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
Revenue (in €m)
+6.1% CAGR over 30 years (3)
EPS (1) (in €)
+8.4% CAGR over 30 years (3)
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue39
0
500
1 000
1 500
2 000
2 500
3 000
1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 20130
0,5
1
1,5
2
2,5
1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
Cashflow (in €m)
+7.4% CAGR over 30 years (3)
Dividend (1) (2) (in € per share)
+9.4% CAGR over 30 years (3)
(1) Adjusted for the 2-for-1 share spilt in 2007 and free share attributions. (2) To be approved by the AGM on May 7 2014. (3) Calculated according to prevailing accounting rules over 30 years.
For further information, please contact:
Investor Relations
Virginia Jeanson ���� + 33 (0)1 40 62 57 37
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Jérôme Zaman ���� + 33 (0)1 40 62 59 38
www.airliquide.com Follow us on Twitter @AirLiquideGroup
Communications
Anne Bardot ���� + 33 (0)1 40 62 50 93
Anette Rey ���� + 33 (0)1 40 62 51 31
World leader in gases, technologies and services for Industry and HealthApril 24, 2014 Q1 2014 revenue40
L’Air Liquide S.A.Corporation for the study and application of proces ses developed byGeorges Claude with registered capital of 1,720,87 9,792.50 euros
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