Improved Performance Airgas Synergies Ahead of Plan Paris, 15 - - PowerPoint PPT Presentation
Full Year 2017 Results A Step Change in Sales with Improved Performance Airgas Synergies Ahead of Plan Paris, 15 February 2018 Agenda 1. Highlights 2. 2017 performance 3. 2018 priorities and outlook 2 15 February 2018 Full Year 2017
Paris, 15 February 2018
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health 2
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
Group Gas & Services Comparable sales growth
(1) Group margin vs. 2016 adjusted group margin
15% 16% 17% 2016 2017
Excluding Energy Impact +70bps
16.1% 16.8%
0% 1% 2% 3% 4% 2016 2017
0% 1% 2% 3% 4% 5% Q1 17 Q2 17 Q3 17 Q4 17
16.5%
As published
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(1) Historical data adjusted for attribution of free shares and for a factor 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 16 May 2018
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
0,0 0,4 0,8 1,2 1,6 2,0 2,4 2,8 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
20 yrs CAGR
+9.5%
Dividend(1)
in € per share
€2.65
€2.2bn
(2)
As published
+10% +19.3%
As published Excluding non-cash non-recurring items & taxes
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
57% 151% 90%
0% 20% 40% 60% 80% 100% 120% 140% 160%
<5> <10> <15> <20> <25>
June 16
Net debt Gearing
6% 8% 10%
adjusted June 17 Dec. 17 2021/22 NEOS
>10% <13.4>
In €bn
Airgas acquisition Airgas acquisition
10.3% 6.9% 7.4%
(1)
(1) As published 2017 ROCE = 8.2%
Gearing comfort range 80% 60%
The world leader in gases, technologies and services for Industry and Health 15 February 2018 Full Year 2017 Results 8
Synergies US$40m ahead of initial 2017 target Leveraging the Airgas model Expansion of customer centric management in the Group
Cumulated Synergies
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15 February 2018 Full Year 2017 Results
Smart Innovative Operations (SIO) New
Strategic asset review Voice of the Customer (VoC) E-health E-business websites Biogas Energy efficiency
The world leader in gases, technologies and services for Industry and Health 15 February 2018 Full Year 2017 Results
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centers
Over 3 years Cumulative €130m investments
spending in innovation
~€80m investments in start-ups
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
12 (1) Refer to appendix for definitions 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
13 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
FY 2017 Q4 2017
+1.5% FY 2017 Q4 2017
(1) On Group sales, based on 2016 adjusted sales
Industrial Production Year on Year in % (3-month rolling average)
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Comparable sales growth
ASIA INDUSTRIAL MERCHANT AMERICAS ELECTRONICS
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
GLOBAL MARKETS & TECHNOLOGIES
DEVELOPING ECONOMIES
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
G&S Quarterly Growth Analysis
+29% +31% +14%
START-UPS in FY17
(1) Comparable growth based on 2016 adjusted sales
AMERICAS
FY 2017
€8,150m
EUROPE
FY 2017
€6,776m
Strong IM and LI in Americas
cylinder volumes up
acquisitions
Improved underlying activity
G&S Comparable Sales Growth FY as published
+31%
16 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health Excluding the impact of the one–off in Q4 2016
Very good momentum in all WBLs
and pricing; low equipment sales in Japan
dynamic Advanced Materials, high E&I
High growth in all WBLs
start-up in South Africa end December
the region
ASIA-PACIFIC
FY 2017
€4,081m
MIDDLE-EAST & AFRICA
FY 2017
€635m
G&S Comparable Sales Growth
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LARGE INDUSTRIES
FY 2017
€5,336m
INDUSTRIAL MERCHANT
FY 2017
€9,261m
High volumes offset by Q4 2016 one-off
in Americas
exceptionals
Continued increase in IM
developing economies
G&S Comparable Sales Growth FY as published
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
+22%
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Steady activity, high contribution from acquisitions
Double-digit growth in Asia
HEALTHCARE
FY 2017
ELECTRONICS
FY 2017
€1,644m €3,401m
G&S Comparable Sales Growth
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
FY as published
+9%
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
100 200 300 400 500 H1-15 H2-15 H1-16 H2-16 H1-17 H2-17 Sales Order intake 100 200 300 400 500 H1-15 H2-15 H1-16 H2-16 H1-17 H2-17 Sales Order intake (1) Group and third-party order intake
GMT E&C
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
FY 17 Efficiencies NEOS Cumulated Efficiencies
2020 2019 2018 2017
>€1,200m >€600m >€900m €323m
+€
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
~US$190m
~US$25m
initial target
faster than expected
2016 2017 2018 2019
45m >175m >235m >300m 45m
215m
270m
Initial target Update
In US$
+US$
In US$
(1)
(1) Defined in 2016
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Recurring FY 2017 = FY 2017 excluding non-cash one-off items FY 2016 Earnings Per Share adjusted for free share attribution of October 2, 2017. 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
The world leader in gases, technologies and services for Industry and Health 15 February 2018 Full Year 2017 Results
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
CASH FLOW
+15%
(1) Including acquisitions, transactions with minority shareholders, net of divestitures. (2) Including share purchases and capital increases.
GEARING
GEARING
Net Debt 31 Dec. 2016 Net Debt 31 Dec. 2017
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Investment Opportunities(1)
12-month portfolio
2017 Investment Decisions(1) 2017 Start-up/Ramp-up Sales Growth Contribution
Europe and Asia
accelerating in H2
forecasted
1 major in AME
(1) See definitions in appendix 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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Yearly sales backlog(1) after full ramp-ups
(1) See definitions in appendix 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
Investment Backlog(1) in €bn
200 400 600 800 1000 Q1-17 Q2-17 Q3-17 Q4-17
Increasing Investment Decisions
In €m
€
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> €
Q1 Q2 Q3 Q4
Sasol
RSA
OCI
U.S.
Fujian Shenyuan
China
Pemex
Mexico
Chinese Project Electronics Projects
Asia
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
(1) exceptional non-cash items having a net positive impact on 2017 net profit
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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(1) Excluding Air Liquide Welding and Aqua Lung (2) Excluding currency, energy price fluctuation and significant M&A impacts 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
Airgas divestments
Published
2016 (1)
Adjusted
Air Liquide 2016
Airgas consolidated
As of
January 1st, 2016 Published
2017
Comparable growth (2) Published growth
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2016 comparable sales growth excluding currency, energy price fluctuation and Airgas impact
Published 2016 excluding Air Liquide Welding and Aqua Lung Published 2016 Air Liquide sales excluding Air Liquide Welding and Aqua Lung (IFRS 5, discontinued operations) Airgas consolidated
Adjusted Air Liquide sales Published 2017 Comparable growth Published growth
Published 2017 Air Liquide sales 2016 starting point:
+ Published 2016 Airgas sales with divestments fully completed as of January 1st, 2016 Growth between 2016 adjusted Air Liquide sales and published 2017 sales
excluding change, energy and significant M&A versus C
versus
Growth between published 2016 Air Liquide sales, excluding Air Liquide Welding and Aqua Lung, and published 2017 Air Liquide sales
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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AMERICAS
€8.1bn
EUROPE
€6.8bn
ASIA- PACIFIC
€4.1bn
Large Industries Electronics Healthcare Industrial Merchant
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
€19,642m
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15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health (1) FY 2016 Basic earnings per share adjusted for the free share attribution of October 2, 2017
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FY 2017 operating margin excluding energy improved +70bps compared to adjusted FY 2016
NB: 2016 figures have been restated to account for IFRS 5, discontinued operations. 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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* Including fair value of derivatives 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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* PPE: Property, plant and equipment.
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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Refer to appendix for definitions 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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Refer to appendix for definitions 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
41 Refer to appendix for definitions
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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Refer to appendix for definitions 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE ELECTRONICS
hurricanes
volumes
America and Canada
Brazil and Argentina
Materials
high Q4 2016
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
(1)
(1) Refer to appendix for definitions (2) Excluding impact of energy and compared to the adjusted 2016 operating margin
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INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE
comparison effect – customer indemnity
stoppage in Ukraine
positive Q4 growth
Eastern Europe
working day
(1) Refer to appendix for definitions 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
(1) (2)
(2) Excluding impact of energy
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INDUSTRIAL MERCHANT LARGE INDUSTRIES ELECTRONICS
Singapore
strong growth both in cylinders and bulk
Korea, Japan, Singapore)
Materials
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
(1) (2)
(1) Refer to appendix for definitions (2) Excluding impact of energy
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Refer to appendix for definitions 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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– Investment opportunities under consideration by the Group for decision within 12 months. – Industrial projects with investment value > €5m for Large Industries and > €3m for other business lines. – Includes asset replacements or efficiency projects. Excludes maintenance and safety.
– Cumulated industrial investment value of projects decided but not yet started. – Industrial projects with value > €10m, including asset replacements or efficiency projects, excluding maintenance and safety.
– Cumulated expected sales per year generated by the current investment backlog after full ramp-up.
– Cumulated value of industrial and financial investment decisions. – Industrial, growth and non-growth projects including asset replacements, efficiency, maintenance and safety. – Financial decisions (acquisitions).
15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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G&S FY 2017 capex(1) G&S capex(1) / sales
(1) Gross industrial investments. 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
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(1) Others: Finance leases and put options granted to minority shareholders. 15 February 2018 Full Year 2017 Results The world leader in gases, technologies and services for Industry and Health
0,0 0,5 1,0 1,5 2,0 2,5 3,0 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 0,0 1,0 2,0 3,0 4,0 5,0 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
3 000 6 000 9 000 12 000 15 000 18 000 21 000 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Revenue (in €m) EPS(1) (in €) Cashflow (in €m)
(1) Adjusted for the 2-for-1 share split in 2007, for attributions 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) Calculated according to prevailing accounting rules over 30 years.
Dividend(1) (in € per share)
CAGR
+6.0%
CAGR
+7.5%
CAGR
+6.9%
CAGR
+8.6%
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For further information, please contact:
Investor Relations Aude Rodriguez + 33 (0)1 40 62 57 08 Louis Laffont + 33 (0)1 40 62 57 18 Ludmilla Binet + 33 (0)1 40 62 57 37 Jérôme Zaman + 33 (0)1 40 62 59 38 Joseph Marczely + 1 610 263 8277 Communication Anne Bardot + 33 (0)1 40 62 50 93 Annie Fournier + 33 (0)1 40 62 51 31
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L’Air Liquide S.A. Corporation for the study and application of processes developed by Georges Claude with registered capital of 2,356,439,277.50 euros Corporate Headquarters: 75, Quai d’Orsay 75321 Paris Cedex 07 Tel : +33 (0)1 40 62 55 55 RCS Paris 552 096 281
The world leader in gases, technologies and services for Industry and Health 15 February 2018 Full Year 2017 Results