Invitation to Shareholders Meeting

Transcription

1 Invitation to Shareholders Meeting COMBINED SHAREHOLDERS MEETING OF MAY 16, 2018 AT 3:00 P.M., AT LE PALAIS DES CONGRÈS 2, PLACE DE LA PORTE MAILLOT PARIS, FRANCE

2 DIGITAL VERSION OF THE ANNUAL GENERAL MEETING CONTENT CHAIRMAN S MESSAGE 3 B.: '"HALE Group Businesses Magazine Shareholders > Annual General Meeting > Invitation to the 2018 Shareholders' meeting INVITATION TO SHAREHOLDERS' MEETING Air Liquide worlctwlde Please select... Engllsh... Search Q Shareholders lnvestors Media Careers. Combined Shareholders' Meeting of May 16, 2018 at 3:00 pm ' -- Palais des Congrès, 2, place de la porte Maillot, Paris, France _.é..:_,:-:,,; :: _-;-1 \-- (±) îtl I..,. ' 1 Il HIGHLIGHTS AND PERFORMANCE OF THE GROUP IN VOTE OR PARTICIPATE IN YOUR SHAREHOLDERS MEETING 8 Using the paper form 8 By Internet 10 Additional information 11 Read more about the Annual General Meeting by scanning the QR code below. PROPOSED RESOLUTIONS AND PURPOSE 12 BOARD OF DIRECTORS 22 Members of the Board (Informations as of December 31, 2017) 22 REMUNERATION OF THE EXECUTIVE OFFICERS 28 2 AIR LIQUIDE SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018

3 CHAIRMAN S MESSAGE Please join us on May 16, 2018 With your vote, together we build Air Liquide's future. Dear Shareholders, Air Liquide s Combined Shareholders Meeting will be held on Wednesday, May 16, 2018, at 3:00 p.m. at the Palais des Congrès in Paris, France. The Annual Shareholders Meeting is a special occasion to learn more about your Company and exchange with us. It is also an opportunity for you to play an active role, through your vote, in making major decisions for your Group, regardless of the number of shares you own. I sincerely hope you will be able to participate in this Meeting, either by your personal attendance, or by using the proxy form which allows you to vote directly or be represented by the Chairman, or any other person of your choice. You also have the possibility to vote by Internet, prior to the Shareholders Meeting. In this document, you will especially find instructions on how to participate in this Meeting, the agenda and the text of the resolutions to be submitted for your approval. Finally, we propose a digital version of this document, available on our website. I would like to thank you in advance for your attention to this document. Yours sincerely, Benoît Potier Chairman and CEO SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018 AIR LIQUIDE 3

4 HIGHLIGHTS AND PERFORMANCE OF THE GROUP IN 2017 Presence in more than 410, ,000 individual shareholders holding Group employees countries 32% of the capital 2017 Group revenue BY ACTIVITY 96% Gas & Services 26% Large Industries 45% Industrial Merchant 17% Healthcare 8% Electronics 2% Engineering & Construction 2% Global Markets & Technologies 20,349 million euros BY REGION AND BY ACTIVITY, FOR GAS & SERVICES (G&S) Americas Europe 17% Large Industries 69% Industrial Merchant 10% Healthcare 4% Electronics 8,150 million euros 41% of G&S 31% Large Industries 31% Industrial Merchant 35% Healthcare 3% Electronics 6,776 million euros 35% of G&S Asia-Pacific Middle East & Africa 37% Large Industries 31% Industrial Merchant 5% Healthcare 27% Electronics 4,081 million euros 21% of G&S 50% Large Industries 44% Industrial Merchant 6% Healthcare 635 million euros 3% of G&S 4 AIR LIQUIDE SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018

5 highlights and performance Of the group in 2017 Improved Performance STEP-UP IN SALES GROWTH IN 2 ND HALF OF 2017 Group sales for 2017 surpass 20 billion euros IMPROVED OPERATING MARGIN (a) 5% 4% +4.0% +70bps 3% 2% 1% +1.8% Comparable Group sales growth 17% 16% 16.1% 16.8% 16.5% Excl. energy impact 0% H H % (a) Group margin vs adjusted Group margin. Increased Dividend Proposal NET PROFIT (Group share) 2.2 bn as published +19.3% as published +10% Net profit growth, excluding non-cash non-recurring items and impact of the american tax reform. DIVIDEND GROWTH: +12.4% Dividend (a) in per share years CAGR* +9.5% (b) * Compound Annual Growth Rate. (a) Historical data adjusted to take into account the two-for-one share split in 2007 for attribution of free shares and the capital increase completed in October (b) Subject to approval at the Combined Shareholders Meeting scheduled for 16 May SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018 AIR LIQUIDE 5

6 highlights and performance Of the group in 2017 Highlights 2017 Airgas fully integrated, with synergies ahead of plan. Long-term contracts: steel (France and Benelux), energy and chemicals (China), chemicals (South Korea), petrochemicals (Oman), refining (Mexico), semi-conductors (Asia). Portfolio management: disposal of Air Liquide Welding and Airgas refrigerants businesses, acquisitions in Healthcare (France, Japan, Colombia, Canada), strategic asset review. Innovations and new markets: operational and optimization center for Large Industry production units (France, China), entry into the Norwegian biogas market, hydrogen charging stations for mobility (Japan, Dubai), and launch of an e-health offer in Europe Performance 2017 was marked by an acceleration in comparable sales growth during the second half and an improvement in operating performance which was reflected in an increase in operating margin and return on capital employed, and by a high level of cash flow. Group revenue totaled 20,349 million euros in 2017, up +12.2% as published, following the consolidation of Airgas sales over 12 months. Comparable growth stood at +2.9% and benefited from a marked step-up in Gas & Services sales growth throughout the year. The currency impact became strongly negative in the second half and stood at 1.6% for the year as a whole. The energy impact, at +1.5% for the year, eased significantly during the second half. Gas & Services revenue totaled 19,642 million euros. Comparable growth, of +3.5% for the year, picked-up pace in the second half (+4.2%). Sales were up across all business lines, in particular Industrial Merchant (+3.8%) which enjoyed a strong recovery in growth quarter-by-quarter. Developing economies (+8.1%) and China in particular remained growth drivers. The 2017 operating margin stood at 16.5%, up +70 basis points compared with the adjusted 2016 operating margin and excluding the energy impact. Productivity efforts in 2017 generated 323 million euros of efficiencies and 170 million US dollars of Airgas synergies, 40 million US dollars more than the initial objective. Net profit (Group share) amounted to 2,200 million euros, up +19.3%. Excluding the non-cash impacts of non-recurring items and the US tax reform, net profit (Group share) totaled 2,029 million euros, up +10.0%. This recurring net profit will be the reference used to evaluate the 2018 performance. Net cash flow after changes in working capital requirements was up +15.1% compared with 2016 and represented 20.9% of sales, driven by a high level of operating cash flow and an improvement in working capital requirements. Net debt at December 31, 2017 reached 13,371 million euros, down 1,997 million euros compared with end The debt-to-equity ratio (gearing) stood at 80% at the end of December 2017, down compared with 90% at the end of The Group pursued its growth initiatives with investment decisions of 2.6 billion euros compared with 2.2 billion euros in The increase is due to industrial decisions and reflects the momentum of the business in terms of biddings. Gross industrial capital expenditure represented 10.7% of sales and was in line with the medium-term strategic plan. The Board of Directors proposed a nominal dividend to be submitted to the Annual General Meeting of 16 May 2018 at 2.65 euros per share. This represents a +12.4% increase taking into account the free share attribution in October The pay-out ratio is estimated at 53%. 6 AIR LIQUIDE SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018

7 highlights and performance Of the group in Key Figures (in millions of euros) FY 2016 FY /2016 published change 2017/2016 comparable change (a) Total Revenue 18,135 20, % +2.9% of which Gas & Services 17,331 19, % +3.5% Operating income recurring 3,024 3, % +7.5% Operating income recurring (as % of revenue) 16.7% 16.5% -20 bps +70 bps (f) Other non-recurring operating income and expenses 36 (344) Net profit (Group share) 1,844 2, %* Adjusted earnings per share (in euros) (b) % Adjusted net dividend per share (in euros) (b) (e) +12.4% Net cash flows from operating activities (c) 3,697 4, % Net capital expenditure (d) 13,609 1,850 Net debt 15,368 13,371 Debt-to-equity ratio 90% 80% (a) Comparable growth based on 2016 adjusted figures excluding the currency, energy and significant scope impacts. (b) 2016 figures restated for the impact of the free share attribution on October 4, (c) Cash flow from operating activities after changes in working capital requirements and other elements. (d) Including transactions with minority shareholders. (e) Subject to the approval of the Annual General Meeting on May 16, (f) Excluding energy, variation 2017 vs adjusted. * +10% Net profit growth, excluding non-cash non-recurring items and impact of the american tax reform. Strategy For many years, Air Liquide s growth strategy has been founded on creating long-term value. To do so, the Group relies on its customers, its operational competitiveness, its targeted investments in growth markets, and innovation to open new markets and create new opportunities. The Group is committed to delivering a regular and sustainable performance for its shareholders and maintaining its strong dividend pay-out policy year after year. This long-term performance is based on continuous growth of the industrial gases market worldwide, a solid business model and a managerial culture founded on consistent performance. Outlook The year 2017 marks a new step for the Group, which successfully integrated Airgas and which has acquired a new scale, with annual sales surpassing 20 billion euros. In a more favorable global economic environment, all Gas & Services activities grew in 2017, in particular Industrial Merchant, which accounts for nearly half of the revenue and whose recovery has been confirmed quarter after quarter. On a geographic level, growth was mainly driven by the developing economies, China in particular, the solid level of activity in the Americas, and the Large Industry projects in the Middle East. The Group s operating performance is improving, with high efficiency gains globally and synergies related to Airgas ahead of the forecast that contribute to the increase in the operating margin and to higher net profit. The balance sheet is solid: the high level of cash flow making a significant contribution to lowering debt by nearly 2 billion euros in the year. The Group can also rely on its investment decisions, particularly in favor of innovation, which reached a total of 2.6 billion euros in 2017, as well as on its 2.1 billion euros investment backlog to fuel its future growth. Thanks to its new size, efforts to improve competitiveness, and initiatives launched in connection with its strategic program, the Group is well-positioned for future growth and development. Accordingly, assuming a comparable environment, Air Liquide is confident in its ability to deliver net profit growth in 2018, calculated at constant exchange rate and excluding 2017 exceptionals (a). (a) 2017 exceptionals: exceptional non-cash items having a not positive impact on 2017 net profit. SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018 AIR LIQUIDE 7

8 VOTE OR PARTICIPATE IN YOUR SHAREHOLDERS MEETING Your vote counts by Internet too! Only shareholders holding shares at the date below may cast a vote in the Shareholders Meeting. Deadlines to remember in order to participate in the Shareholders Meeting of Wednesday, May 16, 2018 (a) : Monday, May 14, 2018, at 00:00 (that is Sunday, May 13, 2018 at midnight) u USING THE PAPER FORM STEP 1 A Resquest an admission card to attend the Meeting A QUELLE QUE SOIT L OPTION CHOISIE, DATEZ ET SIGNEZ AU BAS DU FORMULAIR Je désire assister à cette Assemblée et demande une carte d admission : datez et signez au bas du formulaire. / I wish to att J utilise le formulaire de vote par correspondance ou par procuration ci-dessous, selon l une des 3 possibilités offertes. / I pr IMPORTANT : Avant d exercer votre choix, veuillez prendre connaissance des instructions situées au verso. IMPORTANT: Before selecting, please see instructions on reverse side. Merci de retourner ce document dans l enveloppe T jointe. / Please, use the avalaible prepaid envelope to return this form. Société Anonyme pour l Étude et l Exploitation des Procédés Georges-Claude au capital de ,00 euros - RCS PARIS Siège social : 75, quai d Orsay Paris Cedex 07 ASSEMBLÉE GÉNÉRALE MIXTE convoquée pour le m à 15 heures, au Palais des Congrès, 2 place de la Porte M COMBINED SHAREHOLDERS MEETING to convene W at 3.00 PM, at the Palais des Congrès, 2 place de la Po B1 Vote by post on the resolutions B1 JE VOTE PAR CORRESPONDANCE / I VOTE BY POST (cf. renvoi (2) au verso / see reverse (2)) Je vote OUI à tous les projets de résolutions présentés ou agréés par le Conseil d Administration ou le Directoire ou la Gérance, à l EXCEPTION de ceux que je signale en noircissant comme ceci la case correspondante et pour lesquels je vote NON ou je m abstiens. I vote YES all the draft resolutions approved by the Board of Directors EXCEPT those indicated by a shaded box like this, for which I vote NO or I abstain. Sur les projets de résolutions non agréés par le Conseil d Administration ou le Directoire ou la Gérance, je vote en noircissant comme ceci la case correspondant à mon choix. On the draft resolutions not approved by the Board of Directors, I cast my vote by shading the box of my choice like this. OU Oui/Yes Non/No Abst/Abs Oui/Yes Non/No Abst/Abs B Give your proxy to the Chairman of the Meeting OU B3 Appoint a person of your choice by indicating the name and address Si des amendements ou des résolutions nouvelles étaient présentés en Assemblée. / In case amendments or new resolutions are proposed during the Meeting. Je donne pouvoir au Président de l Assemblée Générale de voter en mon nom / I appoint the Chairman of the Meeting to vote on my behalf Je m abstiens (l abstention équivaut à un vote contre) / I abstain from voting (is equivalent to a vote NO) Je donne procuration (cf. renvoi (4) au verso) à M., Mme ou Melle, Raison Sociale... pour voter en mon nom I appoint (see reverse (4)) Mr, Mrs or Miss, Corporate Name... to vote on my behalf Pour être prise en considération, toute formule doit parvenir au plus tard à la Société le : 12 mai 2018 In order to be considered, this completed form must be returned at the latest to the Company: May 12, 2018 DATE / SIGNATURE STEP 2 DATE AND SIGN here, whatever your choice 8 AIR LIQUIDE SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018

9 Vote or Participate in your Shareholders Meeting u VOTE BY POST Company deadline for receiving documents: Saturday, May 12, 2018 at midnight or v VOTE BY INTERNET Deadline for voting on the website: Tuesday, May 15, 2018 at 3:00 p.m. If you decide to vote by Internet, you must not return your paper voting form, and vice versa. STEP 3 E / WHICHEVER OPTION IS USED, DATE AND SIGN AT THE BOTTOM OF THE FORM end the Shareholders Meeting and request an admission card: date and sign at the bottom of the form. efer use the postal voting form or proxy form as specified below. ercredi 16 mai 2018 aillot, Paris. ednesday, May 16, 2018 rte Maillot, Paris. B2 JE DONNE POUVOIR AU PRÉSIDENT DE L ASSEMBLÉE GÉNÉRALE cochez la case ci-dessus puis datez et signez au bas du formulaire cf. renvoi (3) au verso CADRE RÉSERVÉ À LA SOCIÉTÉ / FOR COMPANY S USE ONLY B3 JE DONNE POUVOIR À : (cf. renvoi (4) au verso) pour me représenter à l Assemblée. I HEREBY APPOINT: (see reverse (4)) to represent me at the above mentioned Meeting. POUVOIR AL 2018 / version Air Liquide RETURN YOUR FORM in the prepaid envelope If you hold (direct or intermediary) REGISTERED shares, please return the form directly to Air Liquide. If you hold shares in BEARER FORM, please return the form to your share account manager, who will then transmit to Air Liquide. Forms received after midnight on Saturday, May 12, 2018 (b) will not be considered in the voting of the Shareholders Meeting. I HEREBY GIVE MY PROXY TO THE CHAIRMAN OF THE MEETING tick the box above, date and sign at the bottom of the form see reverse (3) M., Mme ou Melle, Raison Sociale Mr, Mrs or Miss, Corporate Name Adresse Address Attention : s il s agit de titres au porteur, les précédentes instructions ne seront valides que si elles sont directement retournées à votre banque. Caution: if it is about bearer securities, the present instruction will be valid only if they are directly returned to your bank. Nom, prénom, adresse de l actionnaire (les modifications de ces informations doivent être adressées à l établissement concerné et ne peuvent être effectuées à l aide de ce formulaire). Cf. renvoi (1) au verso. Surname, first name, address of the shareholder (changes regarding this information have to be notified to relevant institution, no change can be made using this proxy form). See reverse (1). Veuillez plier ici / Please fold here (a) Pursuant to articles R and R of the French Commercial Code. (b) Shareholders acting as proxy for other shareholders and holding forms confirming their duties must also send these forms to Air Liquide by midnight on Saturday, May 12, 2018 at the latest, in order to be taken into account, it being specified that electronic proxies must reach the Company by 3:00 p.m. on Tuesday, May 15, SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018 AIR LIQUIDE 9

10 Vote or Participate in your Shareholders Meeting v BY INTERNET request an admission card; vote on the resolutions; Air Liquide offers you the possibility of voting by Internet, before the Shareholders Meeting, using the Votaccess (a) platform that will be open from March 27, 2018 to May 15, 2018 at 3:00 p.m., Paris time. This platform offers you the same possibilities as the paper form. You can therefore: authorize the Chairman of the Meeting to vote on your behalf; grant a proxy to the person of your choice; revoke and appoint a new representative. Shareholders should enter their instructions prior to the eve of the Shareholders Meeting so as to avoid any overload of the Votaccess platform. STEP 1 LOG ON YOU ARE A REGISTERED SHAREHOLDER 1 Log on to the Company s Internet site in the Shareholders section,, Annual General Meeting, check the Vote by Internet banner. You will find a help manual for logging on to. 2 Identify yourself by clicking on Access your Account and use your usual access codes (login and password). If you are signing in for the first time, click on I create my online Account and use the login indicated on your voting form and your shareholder ID: featured in all the letters sent by Shareholder Services, if you are a direct registered shareholder; featured in the letter accompanying your convocation documents, if you are an intermediary registered shareholder. 3 Once you access the home page, click on the I vote or I request an admission card button. By clicking on More information you can access useful documentation for voting. YOU ARE A BEARER SHAREHOLDER Log on to the Internet portal of the institution responsible for managing your share account using your usual access codes. Click on the icon that will appear on the line corresponding to your Air Liquide shares and follow the instructions posted on the screen. Only bearer shareholders whose account manager is affiliated with the Votaccess system and who offers this service for the Air Liquide Shareholders Meeting will have access. Access to the Votaccess platform via the Internet portal of the shareholder s account manager may be subject to specific conditions of use defined by this institution. Consequently, bearer shareholders interested in this service are invited to contact their account manager in order to familiarize themselves with these conditions. CONTACT US Directly through the website STEP 2 SELECT YOUR VOTING INSTRUCTIONS After having clicked on the I vote or I request an admission card button of the home page, indicate you voting instructions on the website and then follow the instructions posted on the screen. Note: A shareholder who has already, by any means, voted by correspondence, filed a proxy form or requested an admission card or an attendance certificate to physically vote at the Shareholders Meeting may not choose an alternative means of voting. (a) Votaccess is a trademark registered by SLIB. 10 AIR LIQUIDE SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018

11 SHAREHOLDER SERVICES Calls are free from a French landline or + 33 (0) from outside France INTERNET See our annual publications: Annual Report, Reference Document, Shareholder s Guide, Interactions and more. WRITE TO US directly through the website: SHAREHOLDERS LOUNGE Open Monday-Friday From 9:00 a.m. to 6:00 p.m. (GMT + 1) 75, quai d Orsay Paris 7 th France INVESTOR RELATIONS + 33 (0) CONTACT US directly: IRteam@airliquide.com Air Liquide - Company established for the study and application of processes developed by Georges Claude with issued capital of 2,356,439, euros INCLUDING THE ANNUAL FINANCIAL REPORT Vote or Participate in your Shareholders Meeting ADDITIONAL INFORMATION YOU WISH TO GRANT YOUR PROXY TO ANOTHER PERSON You may revoke a proxy granted to your representative and name another person of your choice after your initial selection. IMPORTANT: Shareholders acting as proxy for other shareholders and holding forms confirming their duties must also send these forms to Air Liquide by midnight, Paris time, on Saturday, May 12, 2018 at the latest, in order to be taken into account, it being specified that electronic proxies must reach the Company by 3:00 p.m., Paris time, on Tuesday, May 15, Should this be the case, refer to the practical procedures for revoking a proxy described in the Preliminary Meeting Notice published in the legal gazette (BALO Bulletin des annonces légales obligatoires) on February 19, 2018 and available on in the Shareholders section, in Shareholders Meeting page. N. B.: Financial service providers, eligible to act as intermediaries on behalf of shareholders who are not resident in France and benefiting from a general authorization to manage shares, may transfer or issue shareholders votes under their own name. Under article L of the French Commercial Code, they must reveal the identity of the final shareholder to the issuer. SALE OF YOUR SHARES You may sell all or part of your shares even if you have cast a vote or requested an admission card. In this case, for bearer shareholders, the institution responsible for managing your share account should inform Air Liquide so that the number of shares you hold on 00:00, Paris time, Monday, May 14, 2018 may be known. CERTIFICATE OF ATTENDANCE If you hold bearer shares and have not received your admission card as of Monday, May 14, 2018, you must request an individual certificate of attendance from the institution responsible for managing your YOUTUBE Air Liquide Corp Channel share account, in order to attend the Shareholders Meeting. ATTENDANCE FEES LINKEDIN linkedin.com/company/airliquide A 10 euros attendance fee per person will be paid to all shareholders present at the Shareholders Meeting, regardless of the number of admission cards they hold or the number of shareholders they represent Reference Document INCLUDING THE ANNUAL FINANCIAL REPORT YOU WISH TO SUBMIT A WRITTEN QUESTION BEFORE THE MEETING Questions must be sent by registered mail with acknowledgement of receipt to the Chairman at the Air Liquide head office or by at: shareholders@airliquide.com. If you hold shares in bearer form, you must enclose proof of share ownership with your question. Questions must be sent to Air Liquide by midnight on Wednesday, May 9, 2018, at the latest. Responses to written questions may be published directly on www. airliquide.com, in the Shareholders section. SHAREHOLDERS MEETING ON THE INTERNET The entire Shareholders Meeting will be webcast live and available via playback, in French and in English, on the Company s Internet site: Annual General Meeting will be broadcast in sign language. For more detailed information on the Shareholders Meeting voting and attendance procedures, you may refer to the Preliminary Meeting Notice published in the legal gazette (BALO) on February 19, 2018 and available on in the Shareholders section. TO OBTAIN THE PAPER VERSION OF THE ADDITIONAL DOCUMENTATION 2017 Reference Document (Reference Document and Annual Report), return the application form enclosed with your voting form or click on Answer further questions in the Internet voting website. IF YOU ATTEND IN THE SHAREHOLDERS MEETING Please bring your identity card. Voting desks will be closed at 4.00 p.m., Paris time, on May 16, 2018 day of the Shareholders Meeting. SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018 AIR LIQUIDE 11

12 PROPOSED RESOLUTIONS AND PURPOSE AGENDA ORDINARY MEETING: Board of Directors reports Statutory Auditors reports ended December 31, Approval of the Company financial statements for the year Approval of the consolidated financial statements for the year ended December 31, Appropriation of the 2017 earnings; setting of the dividend. Authorisation granted to the Board of Directors for a period of 18 months to allow the Company to trade in its own shares. Renewal of the term of office of four Directors. Approval of the commitments referred to in articles L and L of the French Commercial Code and the Special Report of the Statutory Auditors, concerning Mr Benoît Potier s termination indemnity and defined benefit pension commitments. Approval of the elements of remuneration paid or awarded to Mr Benoît Potier in respect of the fiscal year ended December 31, Approval of the elements of remuneration paid or awarded to Mr Pierre Dufour in respect of the fiscal year ended December 31, Approval of the remuneration policy applicable to the executive officers. Setting the amount of the Directors fees. EXTRAORDINARY MEETING: Authorisation granted to the Board of Directors for a period of 24 months to reduce the share capital by cancellation of treasury shares. Delegation of authority granted to the Board of Directors for a period of 26 months to increase the share capital through capitalization of additional paid-in, reserves, profits or any other amounts, for a maximum amount of 300 million euros. ORDINARY MEETING: Powers for formalities. 12 AIR LIQUIDE SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018

13 Proposed resolutions and purpose ORDINARY SHAREHOLDERS MEETING Resolutions 1 and 2 Approval of the financial statements for the year PURPOSE Shareholders are asked in the 1 st and 2 nd resolutions to approve both the Company and consolidated financial statements of Air Liquide for the year ended December 31, FIRST RESOLUTION (Approval of the Company financial statements for the year ended December 31, 2017) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, having reviewed: the Reports of the Board of Directors and the Statutory Auditors; the Company s financial statements, income statement, balance sheet and notes thereto, approve the Company s financial statements for the year ended December 31, 2017 as presented, and approve the transactions reflected in these financial statements or mentioned in these reports. The shareholders determined the amount of net earnings for the fiscal year at 1,149,807,331 euros. SECOND RESOLUTION (Approval of the consolidated financial statements for the year ended December 31, 2017) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, having reviewed: the Reports of the Board of Directors and the Statutory Auditors; the Group s consolidated financial statements, approve the consolidated financial statements for the year ended December 31, 2017 as presented. Resolution 3 Appropriation of earnings and setting of the dividend PURPOSE In the 3 rd resolution, shareholders are asked to approve the distribution of a dividend of 2.65 euros per share, which represents an increase of +12.4% in shareholders return, taking into account the attribution of one free share for 10 existing shares in A loyalty dividend of 10%, i.e euro per share, shall be granted to shares which have been held in registered form since December 31, 2015 and which remain held in this form continuously until May 30, 2018, the dividend payment date. As of December 31, 2017, 27.35% of the shares making up the share capital are likely to benefit from this loyalty dividend. With an estimated pay-out ratio of 53% of the Group s net profit (57% of recurring net profit), the proposed dividend is an integral part of Air Liquide s policy to reward and grow shareholder portfolios over the long term. The ex-dividend date has been set for May 28, The dividend payment date will be set for May 30, THIRD RESOLUTION (Appropriation of 2017 earnings and setting of the dividend) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, having noted that, considering the fiscal year 2017 earnings of 1,149,807,311 euros and the retained earnings of 6,240,307,970 euros as of December 31, 2017, distributable earnings for the year amount to a total of 7,390,115,281 euros, approve the proposals of the Board of Directors regarding the appropriation of earnings. The shareholders hereby decide to appropriate distributable earnings as follows: Legal reserve Retained earnings Dividend (including the loyalty dividend) 21,819,319 euros 6,202,582,712 euros 1,165,713,250 euros Hence, a dividend of 2.65 euros shall be paid to each of the shares conferring entitlement to a dividend, it being specified that in the event of a change in the number of shares conferring entitlement to a dividend compared to the 428,397,550 shares making up the share capital as of December 31, 2017, the overall dividend amount would be adjusted accordingly and the amount appropriated to the retained earnings account would be determined on the basis of the dividend effectively paid. SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018 AIR LIQUIDE 13

14 Proposed resolutions and purpose The dividend payment date will be set for May 30, 2018: for direct registered shares: directly by the Company, based on the means of payment indicated by the holders; for intermediary registered shares, as well as for bearer shares which are registered in shareholder accounts: by the authorized intermediaries to whom the management of these shares has been entrusted. The dividend distributions made with respect to the last three fiscal years are as follows: Total amount distributed (a) (in euros) Number of shares concerned (b) Dividend distributed eligible in its entirety for the 40% allowance referred to in article of the French Tax Code (in euros) Fiscal year 2014 Ordinary dividend 879,425, ,872, Loyalty dividend 25,661, ,644, Fiscal year 2015 Ordinary dividend 894,823, ,163, Loyalty dividend 26,751, ,889, Fiscal year 2016 Ordinary dividend 1,011,076, ,875, Loyalty dividend 26,595, ,292, (a) Theoretical values calculated based on the number of shares as of December 31 for each fiscal year. (b) Number of shares expressed historically as of December 31 for each fiscal year. The amounts effectively paid after adjustment were as follows: - fiscal year 2014 ordinary dividend: 874,131,348 euros for 342,796,607 shares; loyalty dividend: 23,909,031 euros for 95,636,122 shares; - fiscal year 2015 ordinary dividend: 895,276,249 euros for 344,337,019 shares; loyalty dividend: 25,311,759 euros for 97,352,920 shares; - fiscal year 2016 ordinary dividend: 1,005,542,972 euros for 386,747,297 shares; loyalty dividend: 26,025,861 euros for 100,099,466 shares. The adjustment arises from the change in the number of treasury shares, from the final determination of the loyalty dividend taking into account shares sold between January 1 and the ex-dividend date, from the exercise of options over this same period and the share capital increase reserved for employees. Pursuant to the provisions of the articles of association, a loyalty dividend of 10%, i.e euro per share with a par value of 5.50 euros, shall be granted to shares which have been held in registered form since December 31, 2015, and which remain held in this form continuously until May 30, 2018, the dividend payment date. In accordance with the provisions of article 243 bis of the French Tax Code, it is specified that the ordinary and loyalty dividends are also in their entirety eligible for the 40% allowance referred to in section 2 of paragraph 3 of article 158 of the aforementioned code. The total amount of the loyalty dividend for the 117,152,854 shares which have been held in registered form since December 31, 2015, and which remained held in this form continuously until December 31, 2017, amounts to 30,459,742 euros. The total loyalty dividend corresponding to these 117,152,854 shares that cease to be held in registered form between January 1, 2018 and May 30, 2018, the dividend payment date, shall be deducted from the aforementioned amount. 14 AIR LIQUIDE SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018

15 Proposed resolutions and purpose Resolution 4 Buyback by the Company of its own shares PURPOSE The 4 th resolution renews the authorization granted to the Board, for a term of 18 months, to allow the Company to buy back its own shares (including under a liquidity contract). In 2017, the buyback program resulted in the purchase of 1.5 million shares, representing 0.39% of the capital and the cancellation of 1.1 million shares. Additionally, under the liquidity contract: 1 million shares were purchased and 1 million were sold. As of December 31, 2017, 8,000 shares were held under the liquidity contract. As of December 31, 2017, the Company held approximately 1.4 million shares, assigned to the objective of cancellation for 440,000 shares and to the objective of implementation of any performance shares plan for 1,005,182 shares. These shares represent 0.34% of the Company s share capital. They do not have any voting rights and their related dividends are allocated to retained earnings. The authorization referred to the 4 th resolution provides that the maximum purchase price is set at 165 euros (unchanged amount) per share and the maximum number of shares that can be bought back is limited to 10% of the total number of shares comprising the share capital as of December 31, 2017, i.e. 42,839,755 shares for a maximum total amount of 7,068,559,575 euros. The shares purchased may be canceled in order to offset, in the long term, the dilutive impact resulting from capital increases relating to employee share ownership transactions. The objectives of the share buyback program are detailed in the 4 th resolution and the program description is available on the Company s website, prior to the Shareholders Meeting. As in previous years, the resolution stipulates that the authorization does not apply during takeover bid periods. FOURTH RESOLUTION (Authorization granted to the Board of Directors for a period of 18 months to allow the Company to trade in its own shares) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, after having reviewed the Report of the Board of Directors, in accordance with articles L et seq. of the French Commercial Code and the directly applicable provisions of European Commission Regulation No. 596/2014 of April 16, 2014, authorize the Board of Directors to allow the Company to repurchase its own shares in order to: cancel them, subject to the adoption of the fifteenth resolution; tender them following the exercise of rights attached to marketable securities conferring entitlement to Company shares by redemption, conversion, exchange, presentation of a warrant or any other means; implement (i) any share purchase option plans or (ii) plans for free share attribution, or (iii) any employee share ownership transactions reserved for members of a Company savings plan, performed under the terms and conditions set forth in articles L et seq. of the French Labor Code through the transfer of shares bought back previously by the Company under this resolution, or providing for a free grant of these shares in respect of a contribution in shares by the Company and/or to replace the discount; or (iv) allocation of shares to employees and/or Executive Officers of the Company or affiliated companies, in accordance with the laws and regulations in force; maintain an active market in the Company s shares pursuant to a market liquidity contract in accordance with an Ethics Charter recognized by the French financial markets authority (Autorité des marchés financiers). The Shareholders Meeting will set the maximum purchase price at 165 euros (excluding acquisition costs) per share with a par value of 5.50 euros per share, and the maximum number of shares that can be bought back at 10% of the total number of shares making up the share capital as of December 31, 2017, or 42,839,755 shares with a par value of 5.50 euros, for a maximum total amount of 7,068,559,575 euros, subject to the legal limits. These shares can be purchased at any time, excluding the periods for takeover bids on the Company s share capital, on one or more occasions and by all available means, either on or off a stock exchange, in private transactions, including the purchase of blocks of shares, or through the use of derivative financial instruments, and, if applicable, by all third parties acting on behalf of the Company, under the conditions stipulated in the provisions of the last paragraph of article L of the French Commercial Code. Shares bought back may be commuted, assigned or transferred in any manner on or off a stock exchange or through private transactions, including the sale of blocks of shares, in accordance with the applicable regulations. Dividends on treasury shares held by the Company shall be allocated to retained earnings. This authorization is granted for a period of 18 months starting from the date of this Shareholders Meeting. It supersedes the authorization granted by the fourth resolution of the Ordinary Shareholders Meeting of May 3, 2017 with respect to the non-utilized portion of such authorization. The shareholders give full powers to the Board of Directors, with the possibility of delegating such powers, to implement this authorization, place orders for trades, enter into all agreements, perform all formalities and make all declarations with regard to all authorities and, generally, do all that is necessary for the execution of any of the Board s decisions made in connection with this authorization. The Board of Directors shall inform the shareholders of any transactions performed in light of this authorization in accordance with applicable regulations. SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018 AIR LIQUIDE 15

16 Proposed resolutions and purpose Resolutions 5 to 8 Renewal of terms of office of Directors PURPOSE The 5 th, 6 th, 7 th and 8 th resolutions concern the renewal, as members of the Company s Board of Directors, for a period of four years, of the respective terms of office of Mr Benoît Potier, Mr Jean-Paul Agon, Ms Sin Leng Low and Ms Annette Winkler that expire at the end of this Shareholders Meeting. The Board of Directors confirmed its intention to renew the term of office of Mr Benoît Potier as Chairman and Chief Executive Officer at the meeting to be held at the close of this Shareholders Meeting. This mode of management of the Company allows in particular for regular, personalized exchanges between shareholders and General Management through a single contact person, with in-depth knowledge of the Group and its businesses. These exchanges ensure that the definition of the Group s strategy takes due account of the expectations and interests of shareholders over the long term. Over the past 12 years during which Mr Benoît Potier has been Chairman and Chief Executive Officer, the Group has achieved a consistent performance (an average annual growth over the period of +5.8% in revenue and of +7.4% in published net profit); driven by strong organic growth and transforming acquisitions, including the largest, that of Airgas in The combination of the roles of Chairman and Chief Executive Officer are overseen by balanced rules of governance which have been further strengthened in The Board is thus composed of 8 independent Directors of a total of 12 members, and brings a complementarity of experience and expertise. Its Directors are highly committed, with an average attendance rate at Board and Committee meetings in excess of 96% in Moreover, each Director was also a member of one of the four Committees. The balance of power is ensured by the presence, since 2014, of an independent Lead Director who has specific powers, including the power to ask the Chairman to convene the Board of Directors on a given agenda. Furthermore, since 2017, the Lead Director calls an executive session once a year of all Directors without the presence of the executive Directors (and past executives) and all persons internal to the Group. Directors may also request an individual meeting with the Lead Director as often as they judge necessary. In order to further improve dialog with shareholders, the Board will also now be informed of all regular contact between the Chairman and Chief Executive Officer and the major shareholders, with the latter also having the possibility to request, where necessary, a meeting with the Lead Director. These governance measures are described in detail on pages of the 2017 Reference Document. Mr Jean-Paul Agon, Chairman and CEO of L Oréal, who has been a Director since 2010 and Lead Director since 2017, will continue to provide the Board of Directors with his expertise in the senior management of a major international company and his specific knowledge of consumer product markets. The Board of Directors confirmed its intention to renew Mr Jean-Paul Agon as Lead Director. Ms Sin Leng Low, who has been a Director since 2014, will continue to bring to the Board her experience in the management of industrial activities and her knowledge of the Asian markets. Ms Annette Winkler, Vice President of Daimler (at the head of smart), who has been a Director since 2014, will continue to bring to the Board her experience in senior management of a major German industrial group with an international reach, focused on the consumer goods market. Furthermore and for information, the term of office of the employee Director will expire at the end of this Shareholders Meeting. At a plenary meeting on December 6, 2017, the France Group Committee reappointed Mr Philippe Dubrulle as Director representing the employees for a term of four years expiring at the end of the Shareholders Meeting held to approve the financial statements for the fiscal year ending December 31, FIFTH RESOLUTION (Renewal of the term of office of Mr Benoît Potier as Director) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, after having reviewed the Report of the Board of Directors, decide to renew the term of office of Mr Benoît Potier as a Director for a term of four years, which will expire at the end of the 2022 Shareholders Meeting, held to approve the financial statements for the fiscal year ending December 31, SIXTH RESOLUTION (Renewal of the term of office of Mr Jean-Paul Agon as Director) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, after having reviewed the Report of the Board of Directors, decide to renew the term of office of Mr Jean-Paul Agon as a Director for a term of four years, which will expire at the end of the 2022 Shareholders Meeting, held to approve the financial statements for the fiscal year ending December 31, AIR LIQUIDE SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018

17 Proposed resolutions and purpose SEVENTH RESOLUTION (Renewal of the term of office of Ms Sin Leng Low as Director) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, after having reviewed the Report of the Board of Directors, decide to renew the term of office of Ms Sin Leng Low as a Director for a term of four years, which will expire at the end of the 2022 Shareholders Meeting, held to approve the financial statements for the fiscal year ending December 31, EIGHTH RESOLUTION (Renewal of the term of office of Ms Annette Winkler as Director) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, after having reviewed the Report of the Board of Directors, decide to renew the term of office of Ms Annette Winkler as a Director for a term of four years, which will expire at the end of the 2022 Shareholders Meeting, held to approve the financial statements for the fiscal year ending December 31, Resolutions 9 and 10 Regulated agreements and commitments PURPOSE The 9 th and 10 th resolutions concern two regulated commitments relating to Mr Benoît Potier which must, as provided by law, be subject to a vote by the Shareholders Meeting at the time of the renewal of his term of office as Chairman and Chief Executive Officer. n Termination indemnity: the Board of Directors has modified the termination indemnity to which Mr Benoît Potier may be entitled, taking into account the remarks of certain shareholders. - The termination indemnity will thus be due in the case of forced departure (removal from office, request for resignation) related to a change of strategy or a change in control. In the event of the latter, the termination indemnity will only be due if the departure takes place within six months, versus 24 months previously. - The termination indemnity, capped at 24 months of gross fixed and variable remuneration, is subject to performance conditions using a scale based on the average annual difference between Return On Capital Employed (ROCE) after tax and Weighted Average Cost of Capital (WACC) over three years, the thresholds for increases having been made more exacting than before. The amount of the termination indemnity decreases gradually during the two years prior to the age limit of Executive Officer defined in the Company s articles of association. n Defined benefit pension plan: in response to the requirements of the 2015 Macron law, the Board of Directors decided to subject the contingent rights allocated to Mr Benoît Potier with effect from the renewal of his term of office by this Shareholders Meeting to performance conditions similar to those for the above mentioned termination indemnity. These agreements are included in the Statutory Auditors Special Report on regulated agreements and commitments (see 2017 Reference Document p. 335 et seq. and the Company s website). NINTH RESOLUTION (Approval of commitments referred to in article L of the French Commercial Code relating to the termination indemnity of Mr Benoît Potier) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, after having reviewed the Report of the Board of Directors and the Statutory Auditors Special Report provided for by current legal and regulatory provisions, approve, on the condition precedent of renewal of his term of office as Chairman and Chief Executive Officer, the commitments relating to the termination indemnity of Mr Benoît Potier which are subject to the provisions of articles L and L of the French Commercial Code, under the conditions described in these reports. TENTH RESOLUTION (Approval of commitments referred to in article L of the French Commercial Code relating to defined benefit pension plan commitments for Mr Benoît Potier) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, after having reviewed the Report of the Board of Directors and the Statutory Auditors Special Report provided for by current legal and regulatory provisions, approve, on the condition precedent of renewal of his term of office as Chairman and Chief Executive Officer, the increase in future conditional rights from which Mr Benoît Potier will benefit as of the renewal of his term of office, relating to defined benefit pension scheme commitments meeting the characteristics of the schemes set out in article L of the French Social Security Code and subject to the provisions of articles L and L of the French Commercial Code, under the conditions described in these reports. SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018 AIR LIQUIDE 17

18 Proposed resolutions and purpose Resolutions 11 and 12 Approval of the remuneration of Executive Officers for the 2017 fiscal year PURPOSE Pursuant to article L of the French Commercial Code introduced by the law relating to transparency, the fight against corruption and the modernization of economic activity (called the Sapin 2 law), shareholders are asked in the 11 th and 12 th resolutions to approve the fixed, variable and exceptional components of the total remuneration and other benefits paid or awarded to Mr Benoît Potier in respect of the 2017 fiscal year and to Mr Pierre Dufour whose term of office as Senior Executive Vice President ended following the Shareholders Meeting of May 3, It is specified that no exceptional remuneration has been paid or awarded in The components of remuneration are described in the Report on corporate governance included in the 2017 Reference Document and are summarized in the 2018 Invitation to Shareholders Meeting. They were paid or awarded in line with the remuneration policy approved by the Shareholders Meeting on May 3, ELEVENTH RESOLUTION (Approval of the elements of remuneration paid or awarded to Mr Benoît Potier for the year ended December 31, 2017) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, approve, pursuant to article L of the French Commercial Code, the fixed, variable and exceptional components of the total remuneration and other benefits paid or awarded to Mr Benoît Potier in respect of the 2017 fiscal year, as presented in Chapter 3 Corporate Governance, paragraph Elements of the total remuneration and benefits of any kind paid or awarded to Benoît Potier in respect of the 2017 fiscal year and on which the Shareholders Meeting of May 16, 2018 is invited to vote, of the Company s 2017 Reference Document. TWELFTH RESOLUTION (Approval of the elements of remuneration paid or awarded to Mr Pierre Dufour for the year ended December 31, 2017) The shareholders deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, approve, pursant to article L of the French Commercial Code, the fixed, variable and exceptional components of the total remuneration and other benefits paid or awarded to Mr Pierre Dufour, in respect of the 2017 fiscal year, as presented in Chapter 3 Corporate Governance, paragraph Elements of the total remuneration and benefits of any kind paid or awarded to Pierre Dufour in respect of the 2017 fiscal year and on which the Shareholders Meeting of May 16, 2018 is invited to vote, of the Company s 2017 Reference Document. Resolution 13 Approval of the remuneration policy applicable to the Executive Officers for the 2018 fiscal year PURPOSE Pursuant to article L of the French Commercial Code, shareholders are asked in the 13 th resolution to approve for the 2018 fiscal year, the principles and criteria for determining, distributing and allocating the fixed, variable and exceptional components of the total remuneration and other benefits allocated to Executive Officers, and applicable to Mr Benoît Potier in respect of his term of office as Chairman and Chief Executive Officer, as described in the Report on corporate governance included in the 2017 Reference Document and summarized in the 2018 Invitation to Shareholders Meeting. THIRTEENTH RESOLUTION (Approval of the remuneration policy applicable to the Executive Officers) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, after having reviewed the Report of the Board of Directors mentioned in article L of the French Commercial Code, approve the principles and criteria for determining, distributing and allocating the fixed, variable and exceptional components of the total remuneration and other benefits allocated to Executive Officers as presented in Chapter 3 Corporate Governance of the 2017 Reference Document, in the section covering the principles and criteria for the determination, distribution and allocation of the fixed, variable and exceptional elements of the total remuneration and the benefits of all kinds that may be granted to Executive Officers. 18 AIR LIQUIDE SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018

19 Proposed resolutions and purpose Resolution 14 Setting Directors fees PURPOSE The 14 th resolution sets the authorized amount of Directors fees per fiscal year. Since 2014, the amount has been 1 million euros. On the recommendation of the Remuneration Committee, the Board of Directors proposes to increase the amount of Directors fees that may be allocated each year to the Directors to 1.15 million euros as of The proposed increase takes into account, in particular, the creation of a fourth Committee in 2017 (the Environmental and Social Committee), the increasing number of meetings and the extension of the work handled by the Board and the Committees, as well as the desire to promote a variety of skills and nationalities within the Board for forthcoming recruitments. The Directors fees allocation formula comprises a fixed portion and a variable portion based on lump-sum amounts per meeting, thereby taking account of the effective participation of each Director in the work of the Board and its Committees as well as a fixed amount per trip for non-resident Directors. For further information regarding these elements, please refer to Chapter 3, p of the 2017 Reference Document. FOURTEENTH RESOLUTION (Setting the amount of the Directors fees) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, after having reviewed the Report of the Board of Directors, decides in accordance with article 16 of the articles of association, to set, from fiscal year 2018, the overall amount of Directors fees to be allocated to Directors at the amount of 1.15 million euros per year. EXTRAORDINARY SHAREHOLDERS MEETING Resolution 15 Authorization to reduce the share capital by cancellation of treasury shares PURPOSE As is the case each year, we ask you, in the 15 th resolution, to authorize the Board of Directors to cancel any or all of the shares purchased in the share buyback program and reduce share capital under certain conditions, particularly in order to fully offset, where necessary, any potential dilution resulting from capital increases relating to employee share ownership transactions. The difference between the carrying amount of the canceled shares and their nominal amount will be allocated to reserve or additional paid-in capital accounts. This authorization granted to the Board of Directors will be for a period of 24 months. FIFTEENTH RESOLUTION (Authorization granted to the Board of Directors for a period of 24 months to reduce the share capital by cancellation of treasury shares) The shareholders, deliberating according to the quorum and majority required for Extraordinary Shareholders Meetings, after having reviewed the Report of the Board of Directors and the Statutory Auditors Special Report, authorize the Board of Directors to cancel, via its decisions alone, on one or more occasions, and within the limit of 10% of the Company s share capital per 24-month period, any or all of the shares bought back by the Company within the scope of the authorization adopted by this Ordinary Shareholders Meeting in its fourth resolution and of those shares bought back within the scope of the authorizations adopted by the Ordinary Shareholders Meetings of May 12, 2016 and May 3, 2017 and to reduce the share capital by this amount. The difference between the carrying amount of the canceled shares and their nominal amount will be allocated to any reserve or additional paid-in capital accounts. This authorization is granted for a period of 24 months starting from the date of this Shareholders Meeting. It supersedes the authorization granted by the Extraordinary Shareholders Meeting of May 3, 2017 in its twelfth resolution with respect to the non-utilized portion of such authorization. Full powers are granted to the Board of Directors, with the possibility of sub-delegation under the conditions set by law, to implement this authorization, deduct the difference between the carrying amount of the shares canceled and their nominal amount from all reserve and additional paid-in capital accounts and to carry out the necessary formalities to implement the reduction in capital which shall be decided in accordance with this resolution and amend the articles of association accordingly. SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018 AIR LIQUIDE 19

20 Proposed resolutions and purpose Resolution 16 Share capital increase through capitalization of additional paid-in capital, reserves, profits or any other amounts PURPOSE The Combined Shareholders Meeting of May 12, 2016 had granted the Board of Directors, for a period of 26 months, the authority to increase the share capital, on one or more occasions, through capitalization of additional paid-in capital, reserves, profits or any other amounts that may be capitalized, for the purposes of attributing free shares to shareholders. This authorization was partially used in 2017 when the Company attributed 1 free share for every 10 existing shares following a share capital increase through capitalization of the sum of million euros taken from additional paid-in capital thereby creating 39,814,353 new shares (amount including the loyalty bonus of 10%, i.e. 1 additional free share for every 100 existing shares). As in 2016, in order to provide shareholders with the right to express an opinion on this share capital increase during periods of takeover bids, it is proposed that this delegation of authority be suspended during periods of takeover bids. The purpose of the 16 th resolution is to renew this authorization for a maximum amount of 300 million euros. SIXTEENTH RESOLUTION (Delegation of authority granted to the Board of Directors for a period of 26 months in order to increase the share capital through capitalization of additional paid-in capital, reserves, profits or any other amount that may be capitalized, for a maximum amount of 300 million euros) The shareholders, deliberating according to the quorum and majority required for Ordinary Shareholders Meetings, after having reviewed the Report of the Board of Directors and pursuant to articles L and L of the French Commercial Code: 1. delegate to the Board of Directors, with the option of sub-delegation, the authority necessary to increase the share capital on one or more occasions, according to the terms and conditions and at the time it shall determine, through capitalization of additional paid-in capital, reserves, profits or any other amount that may be capitalized, the capitalization of which will be possible under the law and the articles of association as a free share attribution to shareholders and/or an increase in the par value of existing shares; 2. the delegation thereby granted to the Board of Directors is valid for a period of 26 months starting from the date of this Shareholders Meeting, it being specified however that the Board of Directors will not be authorized to make use of it during periods of takeover bids on the Company s share capital; 3. decide that the total amount of share capital increases likely to be performed thereby may not exceed 300 million euros, this limit being separate from and independent from the limit provided for in paragraph 2 of the thirteenth resolution passed by the Shareholders Meeting of May 3, 2017 (or any resolution which would replace it at a later date), and may not in any case exceed the amount of the additional paid-in capital, reserve, profit or other accounts referred to above that exist at the time of the capital increase (it being specified that this amount does not include additional shares to be issued, in accordance with applicable legal and regulatory provisions, and when relevant, contractual stipulations providing for other adjustments, to preserve the rights of holders of marketable securities or other rights conferring access to share capital); 4. decide that, should the Board of Directors use this delegation, in accordance with article L of the French Commercial Code, fractional rights shall not be negotiable and the corresponding securities shall be sold; the sums resulting from such sale shall be allocated to the holders of rights under the applicable regulatory conditions; 5. take due note that this delegation supersedes any unused portion of the delegation granted to the Board of Directors in the seventeenth resolution voted by the Extraordinary Shareholders Meeting of May 12, 2016; 6. grant full powers to the Board of Directors, with the option of sub-delegation under the conditions set by law, to implement this delegation and in particular to set the terms of issue, to deduct from one or more available reserves accounts the costs arising from the share capital increase, if deemed appropriate, all sums necessary to bring the legal reserve up to one tenth of the new share capital after each share issue, duly record the completion of the resulting share capital increases, make the corresponding amendments to the articles of association and generally complete all the formalities relating to the share capital increases. 20 AIR LIQUIDE SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018

21 Proposed resolutions and purpose ORDINARY SHAREHOLDERS MEETING Resolution 17 Powers PURPOSE The 17 th resolution is a standard resolution required for the completion of official publications and legal formalities. SEVENTEENTH RESOLUTION (Powers for formalities) Full powers are granted to a holder of a copy or extract of the minutes of this Shareholders Meeting to perform all official publications and other formalities required by law and the regulations. SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018 AIR LIQUIDE 21

22 BOARD OF DIRECTORS Listed companies are indicated by an asterisk (*). MEMBERS OF THE BOARD (Informations as of December 31, 2017) Benoît POTIER Chairman and Chief Executive Officer Born in 1957 Nationality: French Date of first appointment: 2000 End of current term: 2018 (a) 289,893 shares Career A graduate of École centrale de Paris, Benoît Potier joined Air Liquide in 1981 as a Research and Development engineer. After serving as a Project Manager in the Engineering & Construction Division, he was made Vice President of Energy Development in the Large Industries business line. In 1993, he became Director of Strategy & Organization and, in 1994, was put in charge of the Chemicals, Metal & Steel, Oil and Energy Markets. He was made an Executive Vice President of Air Liquide in 1995 with additional responsibilities over the Engineering & Construction Division and the Large Industries operations in Europe. Benoît Potier was appointed Chief Executive in He was appointed to the Board of Directors in 2000 and became Chairman of the Management Board in November In 2006, he was appointed Chairman and Chief Executive Officer of L Air Liquide S.A. Positions and activities held during 2017 Functions within the Air Liquide Group Chairman and Chief Executive Officer: L Air Liquide S.A.* (Chairman of the Working Group Shareholder Relations ), Air Liquide International, Air Liquide International Corporation (ALIC) Director: American Air Liquide Holdings, Inc. Chairman: Air Liquide Foundation (until March 2017) Director: Air Liquide Foundation (since March 2017) Positions or activities outside the Air Liquide Group (b) Director: Danone* (member of the Appointment and Remuneration Committee, member of the Strategy Committee, then Chairman of this Committee since December 2017) Chairman: European Round Table (ERT) Director: CentraleSupélec, Association nationale des sociétés par actions (ANSA) Member of the Board: Association française des entreprises privées (AFEP) Member of the French Board: INSEAD (a) Renewal of term proposed to the Shareholders Meeting of May 16, (b) Mr Benoît Potier has been appointed member of the Supervisory Board of Siemens AG* during the General Assembly on January 31, He is also member of the Nominating Committee. His term of office as chairman of the ERT expires in May AIR LIQUIDE SHAREHOLDERS MEETING NOTICE / Combined Shareholders Meeting of May 16, 2018