2010 Results. Solid performance New momentum established. Paris, February 15, Benoît Potier, Chairman and CEO

Transcription

1 2010 Results Solid performance New momentum established Paris, February 15, 2011 Benoît Potier, Chairman and CEO

2 Solid 2010 performance Back to more sustained growth Further improvement in operating performance New momentum established Structural improvements Investment cycle recovery Confirmation of growth drivers and launch of ALMA

3 Back to more sustained growth in G&S Gas & Services sales In m ,628 9,999 11,028 10,192 11,

4 and solid activity in other areas Engineering & Construction total sales Other Activities sales In m In m , Third-party sales Welding - Cutting Internal sales Specialty chemicals and Diving 4

5 Strong recovery in all economies Comparable* G&S sales growth (2010 / 2009) Share of G&S sales in developing economies +9% +6% +9% +10% 15% 16% 19% +15% +41% +19% Advanced economies Developing economies +7% +29% * Excluding forex and natural gas 5

6 operating performance financing growth In bn Gas & Services sales % (1) In m Efficiencies objective: > 200 m GOAL GOAL GOAL In bn , ,5 Net Capex (2) Operating Cash Flow (3) In bn , , , % (1) Comparable: excluding forex and natural gas (2) Including transactions with minority shareholders (3) from operations, before WCR 6

7 and generating strong growth in net profit Net profit (Group share): +14% +8.5% CAGR over 5 years In m 1, Dividend: +11% +9,7% annual growth over 5 years (2) 2, ,0 1, ,0 In 2.35 (1) Pay-out ratio 48.7% (1) Subject to approval at the General Shareholder meeting to be held on May 4, 2011, detached on May 11 and paid on May 16 (2) Adjusted for free share issues 0, ,

8 Solid 2010 performance Back to more sustained growth Further improvement of operating performance Fabienne LECORVAISIER, Chief Financial Officer

9 Solid 2010 results In m Group revenue ,488 10/09 Change +12.6% 2010 change vs Comparable* +7.0% +0.3% Gas & Services revenue 11, % +10.3% +5.0% Operating Income recurring 2, % Net profit (Group share) 1, % Published +14.1% +15.0% Dividend per share** (in ) % Net Debt at December 31 5, Excl. Forex * excluding forex and nat gas ** Proposed at the annual shareholder meeting of May 4, 2011, change taking into account the July 2010 free share attribution. 9

10 Return to growth confirmed Comparable G&S sales growth* 2008: +9.1% 2009: - 4.8% 2010: +10.3% 12% 10% 8% +9.1% +9.9% +9.6% +7.9% +8.3% +10.7% +11.0% +11.3% 6% 4% 2% 0% -2% -4% -6% Q1 Q2 Q3 Q * Comparable : excluding forex and natural gas - 4.2% - 4.6% - 5.1% - 5.2% Q Q Q Q Q Q Q Q

11 Trend maintained through to year-end 115 Gas & Services monthly activity index, 2008 average base 100* average 2008 average 2009 average J F M A M J J A S O N D J F M A M J J A S O N D * Comparable revenue, adjusted for the number of days per month 11

12 Continued growth in all regions 2010 G&S sales Comparable growth* 2010/09 Q4 2010/Q Europe 6,201m +6% +8% Site takeovers (Germany) and start-ups (Italy, Poland) Slow recovery in Industrial Merchant Homecare growth Americas 2,748m Asia Pacific 2,644 m +10% +11% +23% +22% Strong Large Industries growth and Electronics recovery Solid Bulk sales growth in Canada and Brazil Healthcare growth in Latin America Numerous start-ups and ramp-ups (China, Korea, India) and site takeover (Korea) Industrial Merchant development Turnaround in Electronics ME & Africa 293m +15% +17% Good Industrial Merchant growth across the region 2010 Total G&S 11,886m +10% +11% 0% 5% 10% 15% 20% 25% 22% 23% 3% 22% 52% 23% 2% 53% * Excluding forex and nat gas 12

13 Volume recovery still contrasted Base 100, average 2008 Large Industries gas volumes Industrial Merchant, Cylinder and Bulk volumes Hydrogen O 2 + N 2 Bulk Oxygen O 2 Cylinders Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q Q1 08 Q2 08 Electronics specialty gases Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 ESGs Q3 10 Q

14 Gas & Services sales up +10.3% in % 3% -2% -7% -12% Industrial Merchant: +4.7% +3% Q % -11% -9% Q Q Q % Q % Q % Q % +5% Q Q % 15% 10% 5% 0% -5% Large Industries: +17.4% +16% Q % +1% Q Q % Q % Q % Q % Q %+22% Q Q % 34% 30% 20% 10% 0% -10% -20% -30% Electronics: +25.3% +8% -27% Q Q % -19% Q Q % Q % +25% +26% +21% Q Q Q Q % 16% 15% 10% 5% 0% Healthcare: +3.8% +6% +5% +6% +9% +9% Q Q Q Q Q % +5% Q Q % Q % excl. hygiene +1% Q Quarter comparable growth, excluding impact of currency and natural gas, relative to the same period in preceding year. 14

15 Engineering & Construction: confirmed recovery of order intake Third-party E&C sales and operating margin E&C order intake Sales in m % 8.3% 9.0% 1, Margin in % In m ,374 1, Sales in line with project cycle Operating margin in the 5 to 10% range Order intake back to pre crisis level High workload 15

16 Further improvement in Group operating margin In m Revenue Purchases Personnel expenses Other net income and expenses ,103 11,976 13,488 5,547 4,563 5,240 2,177 2,237 2,378 2,437 2,207 2,495 Change 10 vs ,6% +14.8% +6.3% +13.0% Operating Income Recurring before depreciation and amortization Depreciation and amortization Operating Income Recurring (OIR) 2, ,949 2,969 1,020 1,949 3,374 1,122 2, % +10.0% +15.6% OIR margin 14.9% 16.3% 16.7% +40bp OIR margin excl. natural gas effect 16.8% +50bp 16

17 Significant 2010 efficiencies: 280m Group efficiencies 2010 breakdown 300 In m Focus 3C* Industrial & supply chain efficiency Reorganizations and general expenses Procurement globalization *3C: plan «Cash Cost Capex» 17

18 Maintained high Gas & Services operating margin 19.6% G&S OIR margin 19.4%* in m ,281 + XX ,994 <189> <14> G&S G&S G&S OIR 2009 Volume effect Energy effect Cost increase Price excl. energy Efficiencies Forex and Others OIR 2010 OIR = Operating Income Recurring * Excl. Natural Gas, 19.2% as published 18

19 adjusted for the natural gas effect Gas & Services OIR Margin* In % 20% 18% EOS At 1999 natural gas constant prices OPAL GOAL 20.4% 19.2% 16% As published 14% 12% 10% * Operating Income Recurring (after depreciation and amortization) / Sales 19

20 Increase in Business Line margins OIR margin 20% 19.2% 18% G&S margin 16% Large industries 27% 22% 24% 14% Industrial Merchant 14% 16% 17% 12% Healthcare Electronics 16% 10% 17% 12% 19% 13% 10%

21 Positive leverage on revenue In m Revenue Operating Income recurring Other non-recurring operating income & expenses 11,976 1, ,488 2,252 2 Change 10 vs % +15.6% Operating Income 1,959 2, % Net financial costs and other net financial expenses (275) (311) Income taxes Tax rate 24.9% (419) 26.4% (513) Share of profit of associates 20 Minority interests 55 Net results (Group share) 1, , % Earnings per share 4.40* % Diluted earnings per share 4.40* % * Adjusted for free share issues 21

22 Net debt reduction excluding Forex In m <4,891> <296> <5,039> + 2,661 <534> Gearing ratio 63% <1,738> Gearing ratio 55% <241> Net Debt Dec 31, 2009 Cash flow WCR Net Investments* Dividends net of capital increases Forex + IFRS** Net Debt, Dec 31, 2010 * Including transactions with minority shareholders ** Forex impact : 331m 22

23 2010: solid performance G&S Sales Sustained growth Efficiency Ongoing efficiency gains ROCE 12.1% Increase in ROCE to 12.1% 23

24 New momentum established Structural improvements Investment cycle recovery Growth drivers confirmed and launch of ALMA 2015 Benoît Potier, Chief Executive Officer

25 New momentum established Structural improvements

26 Regular structural improvement in G&S G&S operating income recurring EOS OPAL GOAL G&S sales * G&A expenses 120 Depreciation & amortisation Cumulated improvement in G&S operating margin* since 2000 : * Excluding natural gas impact +30 pbs +240 pbs +350 pbs 26

27 Optimized cash management WCR* and WCR/G&S sales in m % WCR 11.0% WCR/G&S sales 11.1% 11.2% 10.8% in % of sales 12% 11% % 10.0% 9.4% 8.7% 8.4% 10% 9% 400 8% 200 7% * G&S working capital requirement excluding taxes. Estimates for 2001 to % 27

28 Better use of assets Group ROCE (1) 13% WACC (2) Value creation 12.1% 12% 11% 10% 9% 8% 7% 6% 5% 4% 0% (1) Return On Capital Employed after tax: (Net profit before minority interests net finance costs after taxes) / weighted average for the year of (shareholders equity + minority interests + net indebtedness). (2) average cost of capital 28

29 Sustainable development TSR (1) Energy efficiency (3) In % % 12.7% 8.1% 8.7% 10.2% Air Liquide In % Crisis impact CAC Rate 2.5 2, , , , ,5 2.3 Accident frequency (2) Innovation spending (4) In % 2.0% 2,0% 1.5% 1,5% 1.0% 1,0% 0.5% 0,5% 1.6% 1.6% 1.7% 1.8% 1.7% 0.0 0, % 0,0% (1) TSR is the contribution from both the share price performance and dividends paid (including loyalty shares), assuming immediate reinvestment in shares. (2) Number of lost time (at least one day) accidents per million hours worked. (3) Energy consumption per m3 of gas produced in air separation units. 100 Based in (4) Innovation spending / sales 29

30 New momentum established Panama Investment cycle recovery Snore Australia Oxea, Germany H 2 energy Albee SGS, South Korea

31 2010 Investment decisions : 2.2 bn* (1/2) H 2 Yanbu project in Saudi Arabia Outsourcing Developing economies FutureGen 2.0 Oxycombustion project study 2010 G&S decisions by Business line Large Industries 47% CO 2 capture 3 site takeovers Syngas and steam Air Liquide supplies: Syngas Steam H 2 O 2 N 2 pipeline * Including acquisitions and minority interests 31

32 2010 Investment decisions: 2.2 bn* (2/2) 14 projects/acquisitions Industrial Merchant Market share in growth regions 4 Healthcare acquisitions 2010 G&S decisions by Business line Industrial Merchant 36% Accelerated expansion Electronics : 20 contracts in Asia 1 major European contract New products 11% Healthcare 6% Electronics * Including acquisitions and minority interests 32

33 Recovery in investment cycle Developing economies Advanced economies 12-month porfolio of opportunities Investment decisions* Start-ups ** In bn In bn dec 06 dec 07 dec 08 dec 09 dec % 77% 20% 54% 56% 75% * Industrial and financial investments, including minorities ** Industrial projects > 10 m 40 expected in

34 New momentum established Confirmation of growth drivers and launch of ALMA 2015

35 Growth drivers confirmed Growth drivers Market Estimated market growth Air Liquide activity Developing Economies Industrial gases Medical gases % CAGR Health Homecare Medical gases +6% CAGR High Tech Semi-conductors Flat screens Solar panels +10% CAGR Environment Energy Large Industries Engineering +9% CAGR Worldwide Industrial and medical gases market (1) +7 to +8% CAGR 35

36 2015 objectives Sales growth +8 to +10% In a normal environment Efficiency > 200 m Per year on average ROCE 12-13% Range in the period Engagement in Responsibility objectives 36

37 2011 Outlook * Solid long-term investment cycle New dynamic introduced by ALMA 2015 Continued steady growth of net profit in 2011 * In a normal economic environment 37

38 Ambition 38

39 Appendices

40 Growth in 2010 G&S revenue in m , % comparable* +1, , % published growth *excluding forex and natural gas effects 2009 Comparable growth Natural gas Change

41 Exchange rate and natural gas impact on Gas & Services sales in m 2009 Q1 10 Q2 10 Q3 10 Q4 10 /USD /CAD /JP Others +74 (8) +120 (45) (26) +14 (7) Total exchange rate Impact Natural gas impact (450) (10) Average exchange rates for the period /USD /CAD /JP 2009 Q1 10 Q2 10 Q3 10 Q

42 Quarterly analysis of sales (1) Sales in m Q4 09 Q1 10 Q2 10 Q3 10 Europe 1,496 1,497 1,505 1,555 Q4 10 Q4 10/09 published Q4 10/09 comparable* 1, % +7.5% Americas % +10.9% Asia-Pacific % +22.0% Middle East & Africa % +16.7% Gaz & Services 2,655 2,760 2,934 3,043 3, % +11.3% Engineering & Construction % -18.7% Other Activities % +10.1% Total Group 3,058 3,152 3,363 3,429 3, % +9.2% *excluding forex and natural gas 42

43 Quarterly analysis of sales (2) Sales in m Q4 09 Q1 10 Q2 10 Q3 10 Industrial Merchant 1,088 1,106 1,208 1,217 Q4 10 Q4 10/09 published Q4 10/09 comparable* 1, % +4.7% Large Industries Electronics Healthcare Gas & Services , , ,934 1, ,043 1, , % +39.5% +3.7% +18.5% +21.7% +25.5% +1.3% +11.3% Engineering & Construction % -18.7% Other Activities % +10.1% Total Group 3,058 3,152 3,363 3,429 3, % +9.2% *excluding forex and natural gas 43

44 Activity by region Europe 23 % Americas Asia - Pacific 53 % 2010 Gas & Services revenue: 11.9bn Middle East and Africa 22 % 2 % Europe: 6.2bn Americas: 2.7bn Asia: 2.6bn 24% 4% 35% 10% 7% 47% 28% 41% 36% 4% 37% 27% Industrial Merchant Large Industries Healthcare Electronics 44

45 Europe in Q4 : +7.5% * Industrial Merchant Recovery still contrasted by country Cylinder activity still fragile in Western Europe Slightly negative pricing Large Industries Start-up in Italy Site takeover of Oxea in Germany in Q3 Healthcare Unfavorable base effect in hygiene sales Continued growth in homecare despite price pressures Gas & Services Revenue : 1,644.4m -0.4% -1.4% Industrial Merchant Large Industries Healthcare +19.0% +4.0% excluding Hygiene -10% -5% 0% 5% 10% 15% 20% * Comparable change Q4 10/09, excluding forex and natural gas 45

46 Americas in Q4: +10.9% * Industrial Merchant Bulk sales up in North America (EOR in Canada) Positive pricing Latin America dynamic Large Industries Site takeover in the US StongHyCoactivity Ramp-ups in Brazil and Argentina Healthcare Homecare : Strong growth in Latin America Acquisition of GlobalMed in Brazil Electronics Confirmation of the recovery in volumes and investments (E&I sales) Gas & Services Revenue : 693.7m Industrial Merchant +8.0% Large Industries Healthcare Electronics +12.7% +14.9% +16.4% 0% 5% 10% 15% 20% * Comparable change Q4 10/09, excluding forex and natural gas 46

47 Asia-Pacific in Q4: +22.0% * Industrial Merchant Growth in bulk sales in China due to new capacity Strong recovery in Japan Gas & Services revenue: 733.3m Large Industries Strong growth in airgas in China due to start-ups Start-up of a hydrogen unit in Singapore Site takeover in South Korea in Q3 Industrial Merchant +10.5% Large Industries +46.5% Electronics Strong growth in E&I sales in all the zone Electronics +20.4% Volume recovery still slow in Japan New contracts in China 0% 20% 40% * Comparable change Q4 10/09, excluding forex and natural gas 47

48 E&C: Orders in hands Total orders in hands*: 4.1bn at end 2010 ASU HyCo 10% 4% Traditional Energy Alternative Energy Renewable Energy 14% 20% 52% * See glossary on next slide 48

49 Engineering Glossary Orders in Hand represent the sum of the initial contract value of all Group and Third Party contracts managed by the Engineering & Construction entities, excluding contracts under warranty Order Intake represents the sum of the initial contract value of all Group and Third Party contracts which entered into force during the period ASU: Air Separation Unit HyCO: SMR (Steam Methan Reformer) units, CO Cold Boxes, Hydrogen PSA (Purification Swing Adsorber) for purification Alternative Energy: plants based on Natural Gas or Coal (such as Methanol and Methanol To Propylene plants, gasification projects) as well as gas cleaning units (Rectisol) Renewable Energy: biodiesel, bioethanol plants as well as oleochemical units Traditional Energy: plants built in the Refining and Basic Petrochemical area 49

50 Operating margin natural gas effect Group, in m Revenue 11,976 13,488 Natural gas effect +110 Operating income recurring 1,949 2,252 Operating margin 16.3% 16.7% Operating margin excluding natural gas 16.8% Gas and services, in m Revenue 10,192 11,886 Natural gas effect +110 Operating income recurring 1,994 2,281 Operating margin 19.6 % 19.2% Operating margin excluding natural gas 19.4% 50

51 Industrial Merchant pricing % Europe Americas 2.6% Asia-Pacific 0.7% -2.2% Middle East and Africa Total Industrial Merchant 0.0% 51

52 Gas & Services capex by geography G&S 2010 Investments *: 1.7bn G&S Investments* / sales Middle East - Africa Europe 9.5% 11.5% Asia-Pacific 5% Europe Americas 16.3% 15.3% 32% 38% Asia-Pacific 24.3% 20.0% 25% Middle East and Africa 39.3% 28.9% Americas Total 14.5% 14.7% * Industrial and financial investments, including transactions with minority shareholders 52

53 Financing structure At 31 December 2010 Sources Maturity Fixed/variable rates Bonds En M 7000 Fixed rate 58% 4% Private placements > % 29% 7% Bank debt 2% Treasury bills Minorities options to % Variable rate 53

54 Evolution of number of shares Number of shares at 31/12/2009 Capital increase reserved for employees Options exercised during the period Free share issue 264,254, ,958 1,049,341 18,078,440 Number of shares at 31/12/ ,095, Average number of shares in circulation (1) 279,350,557 * 281,491,673 (1) Used to calculate the dividend per share, * adujsted for the free share issue 54

55 Regular and sustained performance Revenue (in m): EPS (1) (in ): +7.2% CAGR over 30 years (3) +8.6% CAGR over 30 years (3) IFRS Cashflow (in m): IFRS Dividend (1) (2) (in per share): % CAGR over 30 years (3) % CAGR over 30 years (3) IFRS (1) Adjusted for free share attributions (2) To be approved by the AGM on May (3) Calculated according to prevailing accounting rules over 30 years IFRS

56 For further information, please contact: Investor Relations Virginia Jeanson + 33 (0) Annie Fournier + 33 (0) Bastien Maurice + 33 (0) Communications Anne Lechevranton + 33 (0) Corinne Estrade-Bordry + 33 (0) L Air Liquide S.A. Corporation for the study and application of processes developed by Georges CLAUDE with registered capital of 1,562,523, euros Corporate headquarters : 75, Quai d Orsay Paris Cedex 07 Tel : +33 (0) RCS Paris