Full Year 2016 Results Solid Performance in 2016 Solid Performance in 2016 after Airgas Integration Increase in Revenue, Net Profit and EPS Paris, 15 February 2017
Agenda 1 2016, a successful transformational year 2 Solid operational performance 3 3 Improved investment portfolio profile Improved investment portfolio profile 4 2017: delivering NEOS 2 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
2016, a Successful Transformational Year Benoît Potier Chairman & Chief Executive Officer 3 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
Major Steps Successfully Achieved Divestiture of Other Activities ● US divestitures ● Customer-centric ● Focus on transformation Gas & Services ● Rights issue and GMT Rights ● 2020 ambition ● € and US$ bonds issue Issue ● New organization ● Merger of operations 4 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
2016 Highlights Group Sales Cash Flow €bn € 18.1 bn 19 18 20.4% Strong performance + 14.6% 17 of sales 16 15 14 2013 2014 2015 2016 Net Profit Gearing + 5.0% 90 % In line with guidance Gearing back <100% + 2.7%* NB: 2015 figures have been restated to account for IFRS 5, discontinued operations 5 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
Increased Dividend Proposal Dividend (1) (in € per share over 20 years) € 2.6 (2) 20 yrs 2,8 CAGR + 2.7 % 2,4 + 9.5 % 2,0 1,6 Global 1,2 pay-out ratio 0,8 56 % 0,4 0,0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 (1) Historical data adjusted for attribution of free shares and for a factor of 0,974 reflecting the value of the rights of the capital increase completed in October 2016 (2) Subject to approval at the combined Shareholders’ Meeting scheduled for 3 May 2017 6 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
Starting 2017 on a Solid Foundation 2015 2016 2017 IP stabilizing Organization in place Sustainable scope Ambitious growth objectives More balanced investment portfolio FX & Energy turning favorable New visual identity 7 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
Solid Operational Performance Fabienne Lecorvaisier Chief Financial Officer 8 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
Sales Growth Above Market INDUSTRIAL PRODUCTION FY 2016 (1) + 0.5% FY 16/15 FY 16/15 Q4 16/15 Sales in €m FY 15 FY 16 as published comparable (2) comparable (2) Gas & Services 14,752 17,331 + 17.5 % + 2.7% + 1.7 % Engineering & Construction 775 474 -38.8% - 38.0 % - 34.5% Global Markets & Technologies 292 330 + 13.2 % + 13.6 % + 20.0 % Group Total 15,819 18,135 +14.6% +0.9% +0.5% (1) Industrial Production weighted average by Air Liquide industrial sales footprint. (2) Estimated comparable growth: excluding Currency, Energy and Airgas impact. NB: 2015 figures have been restated to account for IFRS 5, discontinued operations. 9 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
Stabilizing Economic Backdrop FX Impact* Industrial Production Year on Year in % (3-month rolling average) 8% - 1.4% +0.1% 6% FY 2016 Q4 2016 4% World United States 2% Euro Zone Energy Impact* Developing Economies 0% -2% - 2.2% -4% + 0.4% 2013 2014 2015 2016 FY 2016 Q4 2016 Source Coe-Rexecode as of January 2017 *On Group sales 10 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
Strong Growth Drivers in 2016 + 14 % + 5 % + 8 % + 8 % + 5 % + 5 % AIRGAS LARGE GLOBAL MARKETS HEALTHCARE DEVELOPING INTEGRATION INDUSTRIES & TECHNOLOGIES ECONOMIES Sales Growth excluding Currency, Energy and Airgas impact. Comparable sales growth for Americas for Q4 16 and FY16 are estimated due to the merger of Airgas and Air Liquide US operations. 11 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
Q4 - Better Europe, Stable Americas +2% FY +2% FY Q4 incl. Airgas EUROPE +4% AMERICAS FY 2016 FY 2016 +3% +3% +3% +120% +2% +2% € 6,593 m € 6,230 m +1% +0.5% +0.3% Q4 FY2015 Q1 Q2 Q3 Q4 FY2015 Q1 Q2 Q3 -0.2% -0.2% Q4 -0,2% -0,2% G&S Comparable Sales Growth (1) Improved Q4 IM still weak but positive signals • LI: good volumes in air gases, positive one-off • LI: record volumes of air gases in US, several H 2 turnarounds • IM: confirmed bulk volumes increase, positive Food, low Fabrication; growth in South West • IM: better bulk volumes in US Europe • EL: lower E&I sales • HC: steady organic growth • HC: pursued development in South America (1) Comparable growth: excluding Currency, Energy and Airgas impact. Comments relate to Q4 2016. Comparable sales growth for Americas for Q4 16 and FY16 is estimated due to the merger of Airgas and Air Liquide US operations 12 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
Q4 - Solid Fundamentals in Asia, Turnaround in MEA +4% FY +8% FY +24% +45% +7% +6% +6% MIDDLE-EAST ASIA-PACIFIC & AFRICA FY 2016 FY 2016 +4% +3% +2% € 3,936 m € 572 m Q4 +0.5% FY2015 Q1 Q2 Q3 FY2015 Q1 Q2 Q3 Q4 -8% -8% G&S Comparable Sales Growth (1) Positive underlying activity Yanbu turnaround in KSA • Turnarounds in LI • Modest growth in South Africa • Flat EL: high 2015 basis in E&I and neon; China, • Low IM except dynamic Egypt Taiwan, Singapore >+9% • Strong IM in China • Australia back to slight growth (1) Comparable growth: excluding Currency, Energy and Airgas impact. Comments relate to Q4 2016. 13 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
Q4 - Solid LI, Slightly Better IM +5% FY -2% FY Q4 incl. Airgas +74% +9% LARGE INDUSTRIAL INDUSTRIES MERCHANT FY 2016 FY 2016 +5% +5% +4% +4% -1% -1% € 5,037 m € 7,565 m -1% -2% -3% FY2015 Q1 Q2 Q3 Q4 FY2015 Q1 Q2 Q3 Q4 G&S Comparable Sales Growth (1) Turnarounds compensated by one-off Positive signals in contrasted markets • Strong air gases volumes • Food up, Manufacturing stabilizing, 29% Construction down • Positive one-off in Europe FY 2016 FY 2016 • Bulk volumes up in Europe and Asia • Several significant turnarounds • Better pricing 44% (1) Comparable growth: excluding Currency, Energy and Airgas impact. Comments relate to Q4 2016. Comparable sales growth for Americas for Q4 16 and FY16 is estimated due to the merger of Airgas and Air Liquide US operations 14 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
Q4 - Sound HC, Steady Underlying in EL +4% FY Q4 incl. Airgas +5% FY +8% +13% +17% +11% +9% +5% +5% +5% HEALTHCARE ELECTRONICS +4% FY 2016 FY 2016 € 3,111 m € 1,618 m Q3 Q4 FY2015 Q1 Q2 -1% FY2015 Q1 Q2 Q3 Q4 -3% -3% G&S Comparable Sales Growth (1) Solid organic growth Growth of recurring sales • Increased number of patients in • Lower E&I 18% Home Healthcare • ESM (2) impacted by neon sales 9% FY 2016 FY 2016 • Low contribution from bolt-on M&A • Solid Carrier Gases growth • Strong Hygiene and Specialty • Dynamic Advanced Materials Ingredients (1) Comparable growth: excluding Currency, Energy and Airgas impact. Comments relate to Q4 2016. Comparable sales growth for Americas for Q4 16 and FY16 is estimated due to the merger of Airgas and Air Liquide US operations (2) Electronics Specialty Materials 15 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
E&C Low, GMT Developing GMT E&C 936 389 280 405 In €m In €m 300 300 266 255 243 Order 200 200 172 161 Intake (1) 144 119 113 104 104 88 88 85 100 100 73 55 53 44 35 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2015 2016 € 775 m € 474 m € 292 m € 330 m Sales (1) Group and Third Party Orders. 16 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
OIR Margin Reflecting New Mix with Airgas Consolidation FY 16/15 In €m 2015 2016 Revenue 15,819 18,135 + 14.6 % Purchases (5,890) (6,693) +13.6% Personnel expenses (2,929) (3,659) +19.6% Other net income and expenses (2,785) (3,172) Operating profit before depreciation Operating profit before depreciation 4,215 4,215 4,611 4,611 +9.4% +9.4% Airgas Depreciation and amortization (1,359) (1,587) +16.8% consolidation Low margin Operating Income Recurring (OIR) 2,856 3,024 + 5.9 % in E&C OIR margin 18.1% 16.7% -140bps OIR margin 16.4% -170bps excluding energy effect NB: 2015 figures have been restated to account for IFRS 5, discontinued operations. 17 15 February 2017 Full Year 2016 Results The world leader in gases, technologies and services for Industry and Health
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