2010 First half performance

Transcription

1 2010 First half performance Solid progression in sales and profits Recovery in growth projects August 2, 2010 Benoît Potier, Chairman and CEO Pierre Dufour, Senior Executive Vice-President Jean-Pierre Duprieu, Senior Vice-President Fabienne Lecorvaisier, Chief Financial Officer

2 First half 2010 program continues in a new environment Solid performance in revenue and profits Operating margin improvement Recovery in volumes and new project signings 2

3 Growth and operational control In bn Gas & Services sales In m 1200 Operating Cash flow 1,0 1,084 1, % / * +4.0% / 08* % / +16.1% / 08 2 H1 08 H1 H H1 08 H1 H1 10 In m Net Capex In m Efficiencies 335 > 200 Objective H1 08 H1 H GOAL GOAL GOAL FY 08 FY FY in H1 Industrial Financial net of divestitures * Comparable: excluding impact of currency and natural gas 3

4 Solid progression in sales and profits Fabienne Lecorvaisier, Chief Financial Officer

5 Growth compared to and 2008* In m Group revenue Gas & Services revenue H ,516 5,695 10/ change +9.7% +13.4% H change vs H1 H1 08 Comparable** +6.3% stable +9.5% +4.0% Operating income recurring 1, % Net profit (Group share) % As published +13.3% +12.4% Net Debt at June 30 5,691 ~ * pre-crisis reference ** excluding forex and natural gas 5

6 Performance above industry average H Gas & Services sales: comparable (1) growth Peer average (2) vs H1 vs H % +4.0% % - 2.8% Net income (3) : base 100 in H H H1 H (1) excl. forex and nat. gas (2) h figures for peers who have published before 30 july 2010 (3) for the peers, net income adjusted for published exceptional impacts Air Liquide Peer average (2) 6

7 Confirmed recovery Gas & Services monthly activity index, 2008 average base 100* average 95 average Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- 10 Feb- 10 Mar- 10 Apr- 10 May- 10 Jun- 10 * comparable revenue, adjusted for the number of days per month 7

8 Continued improvement in all regions H1 Gas & Services sales Europe 3,002m Americas 1,347m Asia Pacific 1,213m Comparable growth H1 2010/ +4.4% +3.8% +9.5% +8.5% +21.9% +25.2% Strong recovery in steel Solid growth in Homecare Dynamic Eastern Europe 2010/ Contract ramp-ups in South America and the US Industrial Merchant momentum in South America and Canada Numerous start-ups in China Confirmed turnaround in Electronics Japan: industrial production recovery ME & Africa 133m +14.6% +14.2% Integration of acquisitions and strong momentum Total G&S 5,695m +9.5% +8.3% 0% 5% 10% 15% 20% 25% 2% 21% 53% 24% 8

9 Acceleration in emerging economies Mature economies Gas & services sales growth Emerging economies +6% H / H1 +30% Recovery Recovery + growth Growth 9

10 Progressive volume recovery Base 100, average Large Industries gas volumes 08 Q3 08 Q4 08 Q3 Hydrogen Q4 Oxygen Industrial Merchant bulk and cylinder volumes (O 2 ) Q3 08 Q4 08 Q3 Q4 10 Bulk Cylinders Electronics specialty gases ESG Q3 08 Q4 08 Q3 Q

11 Continued improvement in all business lines Industrial Merchant: +4.6% in H1 Large Industries: +13.3% in H1 8% 3% +3.4% +1.7% +7.6% 20% 15% 10% +15.5% +13.7% +13.0% -2% -7% -12% Q % -10.5% -8.8% Q3-6.7% Q H % 0% -5% Q % +1.0% -3.4% Q3-3.5% Q % 33% 30% Electronics: +27.8% in H1 +30,4% +25,2% 10% 17% 15% Healthcare: +5.6% in H1 20% 10% 0% -10% +7,7% -26,5% -22,1% -18,8% -20,5% 10% 5% +5.7% +5.4% +6.3% +8.7% +9.3% +6.1% +5.2% -20% -30% Q Q3 Q % Q Q3 Q half-year and quarter comparable growth, excluding impact of currency and natural gas, relative to the same period in preceding year 11

12 Engineering & Construction: increased order intake In m Third-party E&C sales In m E&C order intake Q Q3 Q H1 Year Sales in line with investment cycle Strong commercial activity 12

13 Robust performance In m H1 H Change Revenue 5,937 6, % Purchases (2,290) (2,425) Personnel expenses (1,142) (1,197) Other income and expenses (1,1) (1,260) Operating Income Recurring before amortization/depreciation 1,396 1, % Amortization / Depreciation (507) (549) Operating Income Recurring 889 1, % Operating margin 15.0% 16.6% +160 bps Operating margin excl. Natural gas effect 16.7% +170 bps 13

14 Efficiency ahead of objective Operating margin In m % Gas & Services Operating margin 19.2% 19.3% excl. natural gas , <70> <21> OIR H1 S1 Effet volume Effet Energie Augmentation Growth des Cost coûts Energy pass through increases Prix hors Energie Pricing excl. energy Efficacités _ Change / Except. Efficiency Currency and others OIR S1 10 H1 10 OIR = Operating Income Recurring 14

15 Significant increase in net income In m H1 H1 10 Change Operating income recurring 889 1, % Other non-recurring operating income & expenses Operating income 919 1, % Net financial costs and other net financial expenses (120) (164) Income taxes (185) (253) Share of profit of associates Tax rate 23.1% % 18 Minority interests (27) (30) Net Profit (Group share) % Earnings per share (in ) 2.15* % * adjusted for the 1 for 15 free share issue in May

16 Debt under control In m <5,691> <448> <4,891> <599> ,059 <812> Gearing 63% Industrials: <665> m Financials: <158> m Divestitures: 11 m Gearing 68% Net debt Dec 31, Cash flow * Net Investments Net Dividends Forex / Scope Net debt June 30, 2010 * net cash from operating activities, after change in WCR 16

17 Recovery in growth projects Benoît Potier, Chairman and CEO

18 Investment momentum is back Portfolio Decisions Capex Start-ups Ramp-ups 5 4 In Bn 12-month portfolio Investment decisions In Bn In Bn 1.7 Industrial and financial capex Jun- 07 dec 07 Jun- 08 dec 08 Jun dec 3.8 Jun H1 07 H1 08 H1 H1 10 Emerging Record Start-ups Mature H1 H m signed in July 13 start-ups in H1 12 start-ups expected in H

19 Industrial Merchant: acceleration in emerging economies Acquisitions * Liquid capacities Filling units Poland Russia Emerging Europe North Africa China Panama Middle-East India Vietnam Brasil Central West Africa Chile Paraguay Emerging IM: % in H * as of August 2,

20 Large Industries: outsourcing growth 3 takeovers * 9 start-ups in H United-States Steam and utilities Germany Syngas Air gases China Japan Air gases Egypt Air gases South Korea Brazil Air gases India Air gases H 2 + CO Large Industries: % in H * as of August 2,

21 Homecare: strategic deployment Acquisitions* Offer expansion New territories DinnoSanté France Extension Kalinox market approval Poland Romania China South Korea Medions Global Med Brazil Australia Snore Homecare sales: + 9.4% in H * as of August 2,

22 2010 Outlook H Solid performance Growth and operational control Recovery in development projects Résultat net En M 2010 objective maintained Based on current trends, continuous growth in net profit in line with long term performance

23 Appendices - Consolidated statements - Activity analysis

24 Impact of currency and natural gas on Gas & Services revenue Currency In m Q3 Q /USD (46) (26) +30 /CAD (1) /JP (8) (7) +31 Other (9) (15) (10) Total currency impact (62) Average exchange rates Q3 Q /USD /CAD /JP Natural gas In m Natural gas impact (163) (142) (83) (10)

25 Consolidated P&L In m H1 H Revenue 5,937 6,516 Cost of goods (4,541) (4,883) Operating income recurring before depreciation 1,396 1,633 Depreciation and amortization expense (507) (549) Operating income Recurring 889 1,084 Net non recurring operating income Operating income 919 1,104 Net finance costs & other net financial expenses (120) (163) Income taxes (185) (253) Share of profit of associates 9 18 Profit for the period Minority interest Net profit (group share) Basic earnings per share (euros) * * adjusted for the one for 15 free share issue in May

26 Consolidated Balance Sheet In m ASSETS 31/12/ 30/06/10 EQUITY AND LIABILITIES 31/12/ 30/06/10 Goodwill Fixed assets 4,003 10,597 4,395 11,728 Shareholders equity Minority interests 7, , Other non-current assets* Total equity 7,752 8,355 Total non-current assets 15,540 17,102 Provisions & deferred tax 2,777 3,053 Inventories & work in-progress Non-current borrowings 5,529 6,273 Trade receivables & other current assets 2,931 3,108 Other non-current liabilities* Cash and cash equivalents* Total current assets 1,445 5,086 1,064 4,943 Provisions Trade payables & other current liabilities Current borrowings* 222 3, ,158 6 Total assets 20,626 22,045 Total equity and liabilities 20,626 22,045 31/12/ 30/06/10 Net debt 4,891 5,691 Net debt ratio 63% 68% * including fair value of derivatives 26

27 Cashflow Statement In m Funds provided by operations Changes in working capital Other items H1 1,084 (7) 36 H1 10 1,266 (207) 0 Net cash from operating activities Purchase of PPE* and intangible assets Purchase of financial assets Proceeds from sale of PPE*, intangible and financial assets Net cash in investing activities Distribution Increase in capital stock Purchase of treasury shares Transactions with minority shareholders Exchange rate and consolidation scope effect Change in net indebtedness 1,113 (772) (27) 10 (789) (618) 87 (1) 0 38 (169) 1,059 (665) (158) 11 (812) (633) 34 (3) (6) 439 (800) 27

28 Number of outstanding shares evolution Average number of shares outstanding Number of shares as at June 30, 2010 H ,167, ,931,628 28

29 Appendices - Consolidated statements - Activity analysis

30 H1 G&S comparable revenue growth: +9.5% In m % comparable* % published 5, , H1 * excl. forex & natural gas Comparable growth* Natural gas Forex H

31 Quarterly sequential growth quarterly revenue, at constant natural gas and forex Base %* %* +1.4%* +2.5%* +4.1%* %* +3.1%* +4.4%* 95 Q3 Q Q3 Q Group Gas & Services 31

32 Revenue breakdown by region Europe 24% Americas H Gas & Services revenue : 5.7bn 53% 21% Asia 2% Middle East & Africa Europe: 3.0bn Americas: 1.3bn Asia: 1.2bn 25% 4% 36% 10% 7% 46% 28% 42% 37% 4% 35% 26% Industrial Merchant Large Industries Healthcare Electronics 32

33 Europe in : Moderate recovery Industrial Merchant Recovery in bulk volumes Sales Gas & Services : 1,505m 4% 25% 36% 35% Cylinders activity still low Eastern Europe dynamic Comparable growth 10/ : +5.0%* Large Industries +1.9% Industrial Merchant Strong recovery in steel Sustained growth in hydrogen +5.2% Large Industries Temporary shutdowns of some cogeneration units Healthcare Continued growth of homecare Unfavorable comparison base in hygiene business (H1N1 flu) In M 0% 5% 10% 15% H % Healthcare Publ. growth Comp. growth Sales 3, % +4.4% OIR % * excl. NG and FX OIR/Sales 19.8% +80bp 33

34 Americas in : Activity in excess of pre-crisis level Industrial Merchant Strong growth in Latin America Industrial production recovery in Canada Progressive improvement in the US Large Industries Ramp-ups of hydrogen contracts in US and Argentina and oxygen in Brazil Steel market recovery Healthcare +7.4% Industrial Merchant Large Industries +12.9% Healthcare +14.0% 0% 5% 10% 15% Solid medical gases growth accross the region Publ. In M H1 10 growth Global Med acquisition in Brazil (sleep apnea) Sales 1, % * excl. NG and FX OIR OIR/Sales Sales Gas & Services : 703m % +19.2% +20bp 7% 10% 48% 35% Comparable growth 10/ : +10.4%* Comp. growth +9.5% 34

35 Asia-Pacific in : Recovery and start-ups Industrial Merchant Partial recovery in Japan New capacities in China Solid industrial production growth in the region Large Industries Four start-ups in China and one in Japan Increasing demand in all countries Electronics Strong recovery in demand New contracts in China Recovery of E&I sales * excl. NG and FX In M Sales OIR Industrial Merchant Large Industries Electronics 0% 10% 20% 30% 40% 50% OIR/Sales Sales Gas & Services : 655m Comparable growth 10/ : +28.6%* H1 10 1, % +21.5% +27.8% Publ. Growth +35.2% +76.7% +400bp 28% 42% 4% 26% +49.6% Comp. growth +25.2% 35

36 Engineering & Construction: Order intake increase In m Consolidated revenues OIR* margin Total order intake Total orders-in-hand H % 350 5,000 H % 420 4,200 Total orders-in-hand breakdown at June 30, 2010 ASU HyCO Traditional energy Alternative energy Renewable energy 12% 10% 4% 18% 56% * includes financial income generated by advances from customers. 36

37 Gas & Services revenue growth by quarter Published Growth Natural Gas Forex Comparable Growth -8.2% -6.0% +2.9% -5.1% Q3-8.9% -5.2% +1.5% -5.2% Q4-9.2% -2.8% -1.8% -4.6% % -0.4% +0.4% +8.3% % -1.6% -6.3% +10.7% 37

38 Revenue analysis by quarter (1) Sales in m Q3 Q / published 10/ comparable Europe 1,402 1,404 1,496 1,497 1, % +5.0% Americas % +10.4% Asia-Pacific % +28.6% Middle East & Africa % +14.9% Gas & Services 2,474 2,514 2,655 2,760 2, % +10.7% Engineering & Construction % -24.4% Others activities % Total Group 2,940 2,980 3,058 3,152 3, % +7.4% 38

39 Revenue analysis by quarter (2) Sales in m Q3 Q / 10/ published comparable Industrial Merchant 1,048 1,069 1,088 1,106 1, % +7.6% Large Industries % +13.0% Electronics % +30.4% Healthcare % +5.2% Gas & Services 2,474 2,514 2,655 2,760 2, % +10.7% 39

40 Operating margin (OIR/Revenue) H1 07 H Group 15.2% 15.2% 15.2% Gas & Services 17.6% 18.8% 18.1% H1 08 H Group 14.9% 14.8% 14.9% Gas & Services 17.5% 17.8% 17.7% H1 H2 Group 15.0% 17.6% 16.3% Gas & Services 18.1% 21.0% 19.6% Published H Excl. Nat. gas 2010 Group Gas & Services 16.6% 19.2% 16.7% 19.3% 40

41 For further information, please contact: Investor Relations Virginia Jeanson + 33 (0) Annie Fournier + 33 (0) Bastien Maurice + 33 (0) Corporate 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 1,555,653, euros Corporate headquarters : 75, Quai d Orsay Paris Cedex 07 Tel : +33 (0) RCS Paris