Accelerating Sales Growth in Gas & Services

Transcription

1 2017 Q3 Activity Accelerating Sales Growth in Gas & Services Paris, 25 October 2017

2 2017 Q3 Activity Fabienne Lecorvaisier Executive Vice President & Chief Financial Officer October July Q3 H Activity The The world leader in in gases, technologies and services for Industry and Health

3 G&S Sales Growth Accelerating in Q3 G&S sales up +4.0%*, after +2.7% in Q2 Improvement in all business lines, in particular: Continued ramp-up of IM in all regions, +4.3% EL sales growth back to high level at +7.2% Operational efficiencies in line, Airgas synergies ahead of plan * Comparable growth; refer to appendix for definitions October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

4 Sales Growth Accelerating in G&S Refer to appendix for definitions October July 2017 Q3 H Activity Results The The world world leader in in gases, technologies and services for Industry and Health

5 Strengthening IP Negative FX & Softening Energy Industrial Production Year on Year in % (3-month rolling average) FX Impact on Group sales +1.7% -4.0% H Q Energy Impact on Group sales +2.2% +1.0% H Q October July 2017 Q3 H Activity Results The The world world leader in in gases, technologies and services for Industry and Health

6 Key Growth Drivers in Q % +10% +8% +7% +13% INDUSTRIAL MERCHANT Refer to appendix for definitions DEVELOPING ECONOMIES ASIA ELECTRONICS GLOBAL MARKETS & TECHNOLOGIES October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

7 Strong Base Business Contribution 2017 comparable growth 7 based on 2016 adjusted sales +14% +31% +29% START-UPS in Q3 17 G&S Quarterly Growth Analysis October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

8 Q3 - IM Pursued Ramp-up in North America and Europe AMERICAS Q ,968m EUROPE Q ,657m G&S Comparable Sales Growth Robust North America +4% growth excl. hurricanes LI: limited U.S. hurricane impact; high volumes in Canada (O 2 ) and South America (H 2 ) IM: continued growth trajectory Strong HHC in South America and Canada IM strengthening LI: high demand of H 2 IM +4.2%: solid growth of bulk and cylinder volumes, +0.6% pricing Sound HC with few bolt-on acquisitions October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

9 Q3 - Thriving Asia, Robust Middle-East ASIA- PACIFIC Q ,010m MIDDLE-EAST & AFRICA Q m G&S Comparable Sales Growth Strong activity in all WBL LI: several start-ups and sustained demand IM: very high bulk & cylinder volume growth and increased pricing in China EL: new contracts, dynamic Advanced materials Strong LI and IM High loading at Yanbu (KSA) Start-up in Egypt Strong HC in South Africa October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

10 Q3 Focus - China Towards Higher Value End-Markets ELECTRONICS >+15%* Leadership position Solid backlog of projects in semiconductors and flat panels INDUSTRIAL MERCHANT >+15% * Strong volumes and pricing Densifying in a fragmented market Shanghai R&D center boosting technical applications IM EL HC ~ 1.5Bn Annual sales LI >4,000 employees HEALTHCARE >+15%* LARGE INDUSTRIES >+10% * >35 plants (ASU & SMR); ~170 km pipeline networks Hangzhou Engineering Center fully loaded 3 ASU start-ups in 2017 Increasing outsourcing trend *Q comparable sales growth October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

11 Q3 - Robust LI, IM Driving Growth LARGE INDUSTRIES Q ,286m INDUSTRIAL MERCHANT Q ,265m High volumes & start-ups G&S Comparable Sales Growth IM strengthening Solid demand in H 2 ASU start-ups in China & Egypt Temporary impact of hurricanes in U.S., ceased operations in Ukraine Sales per day increasing in North America Very strong growth in China Positive pricing October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and and Health

12 Q3 Focus - Strengthening IM Activity in Key Geographies +4.3% Q Sales growth* * On a comparable basis 0% +5% +10% October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

13 Q3 - Solid HC, EL Back to High Growth HEALTHCARE Q m ELECTRONICS Q m G&S Comparable Sales Growth Sound growth, slightly higher M&A Sustained development Strong growth in developing economies Strategic acquisition in Japan Strong growth in Carrier Gases and Advanced materials 2 start-ups in Carrier Gases Advanced materials double-digit growth October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

14 Order Intake Continues to Recover in E&C Group and Third Party Orders E&C GMT Group projects Chemical & biodiesel projects for 3 rd parties Biogas purification Maritime tanks October July Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and and Health

15 2017 Q3 Performance and Investment Up-Date Fabienne Lecorvaisier Executive Vice President & Chief Financial Officer October July Q3 H Activity The The world leader in in gases, technologies and services for Industry and Health

16 Efficiencies Aligned with NEOS Q3 17 Cumulated Efficiencies Cumulated Efficiencies ,200m 229m m 600m m 229m. Sept October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

17 Cumulated Synergies Ahead of Plan at US$177m Accelerated delivery of cost synergies Revenue synergies in line with plan October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

18 Solid Cash Flow, Net Debt Below 15bn YTD 2017 figures Cash Flow on Sales (1) Net CAPEX Net Debt 18.7% 1.6bn 14.9bn 2.9bn (1) 10.7% of sales Gearing <90% (2) (1) Operating Cash Flow before changes in Working Capital Requirements, as of 30 September 2017 (2) Adjusted for dividend seasonality October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

19 Increased Activity in Portfolio of Opportunities Investment Opportunities (1) 12-month portfolio Q3 Investment Decisions (1) Q3 Start-up/Ramp-up Sales Growth Contribution 2.1bn ~610m 51m Increased bidding Small to medium size projects Americas 1 st geography, then Europe and Asia LI in Americas and EL in Asia M&A: HC in Japan, 3 IM at Airgas Portfolio management: divestiture of Airgas Refrigerants business 7 start-ups including 1 take over Mid-size units (1) See definitions in appendix October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

20 Slightly Higher Backlog, in Line with Growth Expectations Investment Backlog in bn (1) 0.8bn (1) See definitions in appendix Yearly Sales Backlog (1) after full Ramp-ups October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

21 2017 Outlook Q Acceleration of G&S sales growth despite hurricanes impact IM strengthening and solid EL Synergies ahead of plan 2017 Assuming a comparable environment, Air Liquide is confident in its ability to deliver net profit growth in 2017 Net debt below 15bn October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

22 Q Appendix October April Q3 H Activity The The world leader in in gases, technologies and services for Industry and Health

23 Adjusted Sales Used as a Comparison Basis (1/2) F Published growth E Comparable growth (2) As of January 1 st, 2016 A B C D Published Airgas Airgas Adjusted 2016 (1) consolidated divestments Air Liquide 2016 (1) Excluding Air Liquide Welding and Aqua Lung (2) Excluding currency and energy price fluctuation impact Published October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

24 Adjusted Sales Used as a Comparison Basis (2/2) A B C D E F Published 2016 excluding Air Liquide Welding and Aqua Lung Airgas consolidated - Airgas divestments Adjusted Air Liquide sales Published 2017 Comparable growth Published growth Published 2016 Air Liquide sales excluding Air Liquide Welding and Aqua Lung (IFRS 5, discontinued operations) Published 2016 Airgas sales with divestments fully completed as of January 1 st, starting point: A + B Published 2017 Air Liquide sales Growth between 2016 adjusted Air Liquide sales and published 2017 sales D excluding change and energy versus Growth between published 2016 Air Liquide sales, excluding Air Liquide Welding and Aqua Lung, and published 2017 Air Liquide sales D versus A C 2016 comparable sales growth excluding currency, energy price fluctuation and Airgas impact Comparable sales growth for Americas for Q4 16, FY16 are estimated due to the merger of Airgas and Air Liquide US operations October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

25 Impact of Currency and Energy on G&S Revenue Refer to appendix for definitions October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

26 Revenue Analysis by Quarter and by Business Line Refer to appendix for definitions October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

27 Revenue Analysis by Quarter and by Geography Refer to appendix for definitions October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

28 G&S Revenue Growth by Quarter and by Impact Refer to appendix for definitions October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

29 Q G&S Revenue Breakdown by Region EUROPE AMERICAS 1.7bn ASIA- PACIFIC 4,787m 2.0bn 1.0bn Industrial Merchant Large Industries Healthcare Electronics October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

30 Americas Q3 Gas & Services Sales: 1,968m INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE ELECTRONICS Continued recovery: +4.2% excl. hurricanes impact Cylinder/bulk improving volumes Hardgoods pick-up in the U.S. Broad-based end-market growth, especially in Metal Fab Improvement in Brazil +1.4% excl. hurricane impact Better O 2 demand in Canada from steel customers Solid H 2 volume growth in Brazil for chemical customers Dynamic South America: Brazil and Argentina Canada: strong growth benefiting from bolt-on acquisitions Double-digit growth in Advanced materials Sales excl. E&I > +10% Refer to appendix for definitions October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

31 Europe Q3 Gas & Services Sales: 1,657m INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE High growth despite one fewer working day Pursued recovery, especially in Southern Europe, Benelux and France Bulk / cylinder improving volumes Improved pricing at +0.6% High volumes in hydrogen (refineries) Sales improving sequentially Eastern Europe strong; ceased operations in Ukraine Steady organic growth with few bolt-on acquisitions Continuous increase in number of patients in Home Healthcare Strong increase in Specialty Ingredients, strengthened by a small acquisition Refer to appendix for definitions October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

32 Asia-Pacific Q3 Gas & Services Sales: 1,010m INDUSTRIAL MERCHANT LARGE INDUSTRIES ELECTRONICS Buoyant China (again >+15% in Q3) with strong growth in cylinders/bulk volume and pricing Decreasing Japan with low demand Positive Australia 3 start-ups in China including 1 take-over Sustained demand from customers in China and South Korea Ramp-up of a new unit in Australia New contracts in carrier gases Very dynamic Advanced materials China and Taiwan driving growth Refer to appendix for definitions October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

33 Industrial Merchant Pricing Refer to appendix for definitions October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

34 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) October July 2017 Q3 H Activity Results The The world leader in in gases, technologies and services for Industry and Health

35 Regular and Sustained Performance 18,000 15,000 12,000 9,000 6,000 3,000 Revenue (in m) +6.0% EPS (1) (in ) CAGR over 30 years (2) % CAGR over 30 years (2) ,500 3,000 2,500 Cash Flow (in m) +6.9% CAGR over 30 years (2) Dividend (1) (in per share) +8.2% CAGR over 30 years (2) 2, ,500 1, (1) Adjusted for the 2-for-1 share split in 2007, for attributions of free shares and for a factor of reflecting the value of the rights of the capital increase completed in October (2) Calculated according to prevailing accounting rules over 30 years October April Q3 Q Activity The The world leader in in gases, technologies and services for Industry and Health

36 For further information, please contact: Investor Relations Aude Rodriguez + 33 (0) Louis Laffont + 33 (0) Ludmilla Binet + 33 (0) Jérôme Zaman + 33 (0) Joseph Marczely Communication Anne Bardot + 33 (0) Annie Fournier + 33 (0) Follow us on L Air Liquide S.A. Corporation for the study and application of processes developed by Georges Claude with registered capital of 2,354,290,654 euros Corporate Headquarters: 75, Quai d Orsay Paris Cedex 07 Tel : +33 (0) RCS Paris October July Q3 H Activity The The world leader in in gases, technologies and services for Industry and Health