1 st Half 2009 Revenue and Results

Transcription

1 1 st Half 2009 Revenue and Results Resilience in sales and net profit 2009 objectives maintained Air Liquide, world leader in gases for industry, health and the environment July 30, 2009

2 Agenda Introduction H performance and 2009 outlook Preparing for the future Conclusion Benoît Potier Fabienne Lecorvaisier Pierre Dufour Benoît Potier 2

3 Efficiency objectives reached in the 1 st half 2009 Costs: - 300m in 2009 Half of the 2009 objective already achieved Actions on all cost items Cash: capex and dividends financed by cash-flow Net debt at the end of June in line with objective of maintaining the level of 31/12/08 No new major customer incident Capex: 1.6bn in 2009 Strict selectivity 1 st half in line with objective In m In m In m Efficiency 180 OPAL Net cash from operations H H H Net investments H2 H1 capex + ½ dividend 0 H1 08 H2 08 H1 09 3

4 H performance analysis and 2009 outlook Fabienne Lecorvaisier, Chief Financial Officer

5 Management adjusted to the environment In m H /08 H1 09/08 comparable* Costs Group revenue Net profit (Group share) % - 0.8% - 5.8% Cash Net cash from operating activities Net debt as at June % +3.1% against Capex Net investments 788 * Comparable basis: excluding impact of currency and natural gas 5

6 H performance analysis and 2009 outlook Activity Fabienne Lecorvaisier, Chief Financial Officer

7 Sequential improvement in Gas & Services Base Monthly indicator of activities, base 100 average 2008 * Average 2008 January February March April May June 2009 * Revenue adjusted by number of days / month 7

8 Some positive signals 100 Stabilization at a low level Trend reversal Oxygen in Canada : flat steel 130 Oxygen Gulf Coast : Chemicals Base 100 Base jun. 08 jul. 08 aug. 08 sept. 08 oct. 08 nov. 08 dec. 08 jan. 09 feb. 09 mar. 09 apr. 09 may 09 jun. 09 Jun.08 Jul. 08 Aug. 08 Sept. 08 Oct. 08 Nov. 08 Dec. 08 Jan. 09 Feb. 09 Mar. 09 Apr.09 May.09 Jun.09 Bulk in Germany 100 Specialty gases in Taiwan : memory chips Base 100 Jul. 08 Aug. 08 Sept. 08 Oct. 08 Nov. 08 Dec. 08 Jan. 09 Feb. 09 Mar. 09 Apr.09 May.09 Jun Base 100 sept. 08 oct. 08 nov. 08 dec. 08 jan. 09 feb. 09 mar. 09 apr. 09 may 09 jun. 09

9 Gas & Services activities: contrasting performance continues Industrial Merchant: Large Industries: 10% 5% 0% -5% -10% -15% 6.5% 6.5% 6.9% 3.4% Q Q Q Q Q Q % -10.5% 20% 15% 10% 5% 0% 17.2% 16.0% 15.5% 10.6% 2.2% 1.0% Q Q Q Q Q Q % 32% Electronics: 18.7% 8% 18% Healthcare: 15% 15% 5% -5% 4.9% 7.2% 7.7% % -22.1% 10% 5% 8.2% 9.3% 7.0% 5.7% 5.4% 6.3% -15% -25% Q Q Q Q Q Q % Q Q Q Q Q Q All figures represent comparable growth : excluding impact of currency and natural gas 9

10 Regions driven by business mix in H1 Europe H1 09 Gas & Services sales: 5.0bn Start-ups and ramp-ups of units Growth in Healthcare Americas Positive O 2 signs in Q2 for chemicals Growth in Latin America Asia 2% 18% 23% -1.8% -4.1% 57% Europe Americas Strong impact of Electronics and Japan -16.5% Asia-Pacific Start-ups and ramp-ups in China Middle-East / Africa Ramp-ups, acquisitions and IM development Middle-East / Africa -4.6% G&S total +21.7% -32% -24% -16% -8% 0% 8% 16% 24% 32% H1 09/08 on a comparable basis* * excluding impact of currency and natural gas 10

11 Resilience confirmed Group activity in H1: Forex Cyclical sectors - 8% + Defensive sectors and pricing - 1% + Start-ups and acquisitions +4% % Nat gas - 3.5% Cyclical sectors: sequential improvement in Gas & Services Defensive sectors: volumes still low but improving at the end of the period, positive pricing Start-ups & acquisitions in line Amplification of natural gas trend 11

12 H performance analysis and 2009 outlook Operational measures Fabienne Lecorvaisier, Chief Financial Officer

13 Positive leverage In m H1 08 H1 09 H1 09/08 Revenue Purchases Personnel expenses Other income and expenses (2 658) (1 072) (1 205) (2 290) (1 142) (1 109) - 6.8%* - 13,9% + 6,5% - 7,9% Operating Income Recurring before depreciation & amortization % Depreciation & amortization expense (485) (507) + 4.7% Operating Income Recurring % GAS & SERVICES Revenue %* Operating Income Recurring % *Comparable growth: Group - 5.8% Gas & Services - 4.6% 13

14 Operational measures improve efficiency Operating margin 17.5% Gas & Services Operating margin 18.1% 17.2% ex. natural gas m <179> +0 <98> Efficiency +141 Pricing excluding energy <42> % of the impact of activity decline is offset OIR H1 08 Q1-08 Croissance Energie (net Volume Energy après effect effect répercussion) Augmentation Cost des coûts increases Répercussions Pricing and des coûts / efficiency efficacité Change / Currency Except. and others Q1-09 OIR H1 09 OIR = Operating Income Recurring 14

15 Net profit almost equal In m Operating Income Recurring Other non-recurring operating expenses H (7) H H1 09/08-6.5% Operating Income % Net finance costs and other net financial expenses Income Taxes Tax rate Share of profit of associates Minority interests (114) (220) 26.5% 14 (22) (120) (185) 23.1% 9 (27) Net profit (Group share) Diluted EPS (in ) % = 15

16 Ahead of target of 2009 net debt at end 2008 level In m <5 484> +36 <5 654> +170 <531> <788> Net debt Dec 31, 2008 Cash Flow* Net Investments Net Dividends Forex / Scope Net debt June 30, 2009 * Net cash from operating activities 16

17 2009 outlook confirmed Positive signals observed in May and June, particularly in the emerging economies and some cyclical sectors (US Chemicals and Electronics) Volumes stabilized at a low level in the mature economies, especially exporting countries 2009 projects are delivering Objective maintained for the whole of 2009: «Revenue and Net income to be close to the 2008 levels» 17

18 Preparing for the future Pierre Dufour Senior Vice-President

19 Large Industries potential in China Coal gasification in China: coal triangle potential oxygen demand > 230,000 tonnes/day by 2015 Oxygen demand in China: 900,000 tonnes/day by 2015 High Identified coal reserves: 1,000bn tonnes (2004 data) Medium Low In Kt / day 900 Estimated evolution of capacity by market Traditional markets Gasification Xinjiang Beijing Inner Mongolia Tianjin Hebei Ningxia Shanxi Shandong Gansu Sichuan Chongqing Yunnan Shaanxi Henan Anhui Guizhou Guangdong Heilongjiang Hong Kong Shanghai Fuel Chemicals Petrochemicals Metals 19

20 Growth and outsourcing + Oxygen production in China 4 world players + regional players 18% tpd 10% tpd tpd 4 years ago Outsourced oxygen production X tpd Today 20

21 Air Liquide in China: more than 900m invested by 2009 Territoires historiques Historical Territoires territories récents Recent territories BEIJING-TIANJIN-HEBEI 7 units + 5 under construction SHANDONG 5 units + 1 under construction EAST (Greater Shanghai) 15 units + 2 under construction Major installed units in China Un réseau de 300 km 300km of pipelines Large Industries Industrial Merchant Electronics Healthcare Total signed O 2 capacity > 19,000 t/day 21

22 Engineering: Lurgi integration completed In m S1 In % 20% 15% % 500 5% S1 09 0% Consolidated sales Internal activity OIR/revenue Critical mass and targeted profitability achieved 22

23 Engineering: key to Large Industries growth AIR LIQUIDE LURGI contribution = AIR LIQUIDE 2009 Technology O 2 Operating expertise ASU SMR Cogen Technologies H 2 Gasification Renewable energies Customer relationships Control of all technologies Operating experience «Clean conversion partner» Market shares in Large Industries Air Liquide To support growth drivers: Energy Environment 23

24 Evolving G&S portfolio Portfolio 4 In bn Delays 3 Rescheduling of projects in 12-month portfolio of opportunities Entry of new projects: recovery in the 2 nd quarter /31/06 06/30/07 12/31/07 06/30/08 12/31/08 06/30/09 New projects /month 20 S 08 O N D J 09 F M A M J 09 Base 100, 2008 average Increasing share of emerging economies: 81% of portfolio in June % Matures June % 19% June % Emerging 24

25 Mid-term investment momentum is maintained Portfolio Decisions Capex Start-ups Ramp-ups 450m of investment decisions in H Return on projects in line with objectives 35 start-ups confirmed for , of which 7 in H Mature economies Emerging economies 1bn of sales in

26 Conclusion Benoît Potier Chairman and Chief Executive Officer

27 Outlook «The performance of the 1 st half of 2009 is in line with our expectations, in terms of efficiency, cash generation and level of indebtedness. It confirms Air Liquide s resilience in a context of slow demand. As concerns the levels of activity, the positive signs were more pronounced at the end of the half-year, but some segments remain affected by weak customer demand. In this context and as a result of the momentum generated by the ALMA programme, we maintain our objective for 2009, of revenue and net income to be close to the 2008 levels. The Group remains confident in the robustness of its growth model thanks to the structural potential of its five growth drivers which are Energy, Environment, Emerging Economies, Health and High Tech. Air Liquide will continue to invest in them to strengthen its strategic positioning. «27

28 Appendices

29 Europe in Q2: supported by Healthcare and start-ups Industrial Merchant Price increases Slight sequential improvement in the South (bulk) Germany stabilized in June only Large Industries Start-ups and ramp-ups in line Chemicals and steel volumes still low, but stabilized compared with Q1 Healthcare Hospital gas volumes still growing but slowdown of equipment sales Sustained demand in homecare and ramp-ups of new contracts in United Kingdom and Italy Hygiene sales up due to Swine Flu Q2 Gas & Services revenue: m In m -20.1% -10.4% +1.4% +5.6% -20% -10% 0% 10% Sales OIR OIR/sales Q2 09/08 comparable: -3.1%* Large Industries H % Healthcare H1 09/08 published - 3.4% +0.9% +60bps** Industrial Merchant H1 09/08 comparable - 1.8% 25% Electronics 3% 35% * comparable ** excluding nat. gas 37% 29

30 Americas in Q2: recent signs of recovery Industrial Merchant Volume reached lowest point in Q2 Positive pricing effect Large Industries No start-up Sequential recovery in Chemicals on Gulf Coast pipeline Hydrogen demand stable Healthcare Good growth in hospital activity Homecare momentum (Canada and Latin America) Q2 Gas & Services revenue: 566 m In m % Sales OIR OIR/sales H % +0.4% -12% -8% -4% 0% 4% 8% 12% H1 09/08 published % +2.8% - 20bps** H1 09/08 comparable - 4.1% -7.2% Q2 09/08 comparable: -4.1%* Large Industries Healthcare Industrial Merchant Electronics 7% 10% 34% % * comparable ** excluding nat. gas 49% 30

31 Asia in Q2: contrast between Japan and China Industrial Merchant Low level of demand especially in Japan Growth in China due to new capacities Q2 Gas & Services revenue: 449 m Q2 09/08 comparable: -14.7%* -14.4% 29% 5% 21% 45% Industrial Merchant Electronics Sequential recovery of ESGs -26.2% Electronics Decrease of E&I Large Industries -0.6% Large Industries Recovery of South Korea Strong growth in China : start-ups and ramp-ups -30% -20% -10% 0% In M Sales OIR OIR/sales H % H1 09/08 published - 7.9% % - 370bps** H1 09/08 comparable % * comparable ** excluding nat. gas 31

32 Engineering & Construction: Lurgi integration completed In m H1 08 Consolidated revenue 504 H OIR* margin Total order intake Total orders-in-hand 4.9% % Total orders-in-hand breakdown ASU HyCO Traditional Energy Alternative Energy 15% 10% 9% 50% Renewable Energy 16% * includes financial income generated by advances from customers. 32

33 Cashflow Statement In m Funds provided by operations Changes in working capital Other items Net cash from operating activities H (180) (19) 891 H (7) Purchase of PPE* and intangible assets Purchase of financial assets Proceeds from sale of PPE*, intangible and financial assets Net cash in investing activities (791) (114) 27 (878) (772) (27) 11 (788) Distributions Increase in capital stock Purchase of treasury shares Exchange rate and consolidation scope effect (569) 22 (112) 85 (618) 87 (1) 38 Change in net indebtedness (561) (169) * PPE = Property, Plant and Equipment 33

34 Consolidated Balance Sheet In m ASSETS 01/01/09* 06/30/09 EQUITY AND LIABILITIES 01/01/09* 06/30/09 Goodwill Shareholders equity Fixed assets Minority interests Other non-current assets** Total equity Total non-current assets Provisions & deferred tax Inventories & work in-progress Non-current borrowings Trade receivables & other current assets Other non-current liabilities** Cash and cash equivalents** Total current assets Provisions Trade payables & other current liabilities Current borrowings** Total assets Total equity and liabilities Net debt Net debt ratio 12/31/ % 06/30/ % * Dec 31, 2008 consolidated balance sheet restated for SORIE adoption ** Including fair value of derivates 34

35 Operating margin (OIR/Revenue) H1 06 H Group 14.7% 15.6% 15.2% Gas & Services 17.3% 17.9% 17.6% H1 07 H Group 15.2% 15.2% 15.2% Gas & Services 17.6% 18.6% 18.1% H1 08 H Group 14.9% 14.8% 14.9% Gas & Services 17.5% 17.8% 17.7% H as published excluding nat. gas 2009 Group 15.0% 14.4% Gas & Services 18.1% 17.2% 35

36 Gas & Services revenue growth by quarter Published Growth Natural Gas Forex Comparable* Growth Q % +2.1% - 3.2% +9.1% Q % +4.1% - 4.5% +9.9% Q % +4.6% - 3.1% +9.6% Q % +1.4% +3.1% +7.9% Q % - 2.3% +2.7% - 4.2% Q % - 6.0% +2.9% - 5.1% * Comparable: excluding impact of currency and natural gas 36

37 Revenue analysis by quarter (1) Sales in m Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 09/08 Published Q2 09/08 Comparable Europe % - 3.1% Americas % - 4.1% Asia-Pacific % % Middle-East & Africa % +19.2% Gas & Services % - 5.1% Total Group % - 8.0% 37

38 Revenue analysis by quarter (2) Sales in m Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 09/08 Published Q2 09/08 Comparable Industrial Merchant % % Large Industries % +1.0% Electronics % % Healthcare % +6.3% Gas & Services % - 5.1% Engineering & Construction % % Other Activities % % Total Group % - 8.0% 38

39 Impact of currency and natural gas on the Group In m Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 /USD (64) (73) (43) /CAD +3 (9) (12) (15) (9) (1) /JP (2) (1) Other (21) (32) (25) (21) (30) (9) Currency impact (84) (115) (80) Natural gas impact (62) (163) Average exchange rates /USD /CAD /JP Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q

40 Evolution of the number of shares Average number of shares outstanding Number of shares 30/06/2009 H

41 1st Half 2009 Revenue and Results For further information, please contact: Investor Relations Virginia Jeanson + 33 (0) Annie Fournier + 33 (0) Corporate Communication Anne Lechevranton + 33 (0) Corinne Estrade-Bordry + 33 (0) Air Liquide, the world leader in gases for industry, health and the environment