Strong Growth in Line with NEOS Solid Performance Business - - PowerPoint PPT Presentation
H1 2018 Activity Strong Growth in Line with NEOS Solid Performance Business Development Acceleration Paris, 30 July 2018 Agenda 1. Strong growth in line with NEOS 2. Solid performance and strong cash flow 3. Business development
Paris, 30 July 2018
30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health 2
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Net Profit Cash Flow(3) G&S Operating Margin(2)
(1) Comparable growth (2) Excluding energy impact (3) After change in Working Capital Requirements
Sales(1)
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
0% 1% 2% 3% 4% 5% 6% H2 16 H1 17 H2 17 H1 18 +5.8% +4.0%
Group Sales Comparable Growth Investment Decisions - in €bn
1,0 1,2 1,4 H2 16 H1 17 H2 17 H1 18
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Digital operations
in 3 zones
New investments
in key basins
Large Industries Industrial Merchant Healthcare Electronics Web portals
in place
Increased density
acquisitions in China
Airgas fully integrated e-Health
running solutions
Entry in new countries
Colombia and Saudi Arabia
Ramp up of etching gases New contracts
Japan and Taiwan
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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Note: NEOS sales growth objective between +6% and +8% CAGR 2016-2020, including Airgas scope effect in 2017 contributing +2% to the CAGR
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Industrial Production Year on Year in % (3-month rolling average)
H1 2018
Estimated FY 2018
(2)
(1) On Group sales (2) With an annual average EUR/USD exchange rate estimated at 1.19
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Comparable G&S sales growth
ASIA INDUSTRIAL MERCHANT AMERICAS HEALTHCARE
30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
DEVELOPING ECONOMIES
ELECTRONICS
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
G&S Quarterly Growth Analysis
+29% +31% +14%
(1) Comparable growth based on 2016 adjusted sales
base business since
AMERICAS
H1 2018
€3,874m
EUROPE
H1 2018
€3,464m
Dynamic IM and HC, high EL
contribution
pricing
Scandinavia
Very high organic HC and solid IM
G&S Comparable Sales Growth
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Very strong momentum in all activities
and Australia
and volumes; improving Australia
Full impact of major start-up in LI
in Saudi Arabia
ASIA-PACIFIC
H1 2018
€2,107m
MIDDLE-EAST & AFRICA
H1 2018
€324m
G&S Comparable Sales Growth
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LARGE INDUSTRIES
H1 2018
€2,718m
INDUSTRIAL MERCHANT
H1 2018
€4,501m
Strong contribution from SU/RU
and China
Chemicals market
Europe and the U.S.
Robust activity
Metal Fabrication markets
G&S Comparable Sales Growth
30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
+4% +4,5% Q1 18 Q2 18
H1 18 : +4%
+6% +4% Q1 18 Q2 18
H1 18 : +5%
+4.5%
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Very strong organic activity
Ingredients
Double-digit growth in Asia
materials
HEALTHCARE
H1 2018
ELECTRONICS
H1 2018
€836m €1,714m
G&S Comparable Sales Growth
30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
+5% +7% Q1 18 Q2 18
H1 18 : +6%
+6% +8% Q1 18 Q2 18
H1 18 : +7%
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
100 200 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Sales Order intake 100 200 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Sales Order intake (1) Group and third-party order intake
E&C GM&T
+33% +4%
(2) (2)
(2) Comparable growth
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
H1 18 Efficiencies NEOS Cumulated Efficiencies
2020 2019 2018 2017
>€1,200m >€600m >€900m
€497m
€323m Target
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Costs ~US$215m Revenue ~US$45m
2016 2017 2018 2019
45m >175m >235m >300m 45m 215m
Initial target Update
In US$
In US$
(1)
(1) Defined in 2016
>280m
Mid- 2019
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
CASH FLOW +11.1%
Gearing
80%
Gearing(1)
79%
(1) June 30 gearings adjusted for dividend seasonality. (2) Including acquisitions, transactions with minority shareholders, net of divestitures. (3) Including share purchases and capital increases.
Gearing(1)
90%
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
6% 8% 10%
adjusted June 17
June 18 2021/22 NEOS
>10%
Airgas acquisition
10.3% 6.9% 7.4%
ROCE
(1) Excluding 2017 positive impact on net profit of non-cash one-off items.
7.7%(1)
(1)
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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Investment Opportunities(1)
12-month portfolio
H1 2018 Investment Decisions(1) H1 2018 Start-up/Ramp-up Sales Growth Contribution
EL Carrier Gas contracts in Asia
Middle-East
(1) See definitions in appendix 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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Q1 Q2 Q3 Q4
Sasol
RSA
OCI
U.S.
Fujian Shenyuan
China
Pemex
Mexico
Chinese Project Electronics Projects
Asia
Q1 Q2
Middle- East Projects
Yanchang
China
Electronics Projects
Asia
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(1) See definitions in appendix 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
Investment Backlog(1) in €bn
Dec 2015 Dec 2016 Dec 2017 Decisions Start-ups June 2018
Start-ups Decisions
Yearly Sales Backlog(1) after full Ramp-ups
€2.3bn €2.1bn €2.1bn €2.3bn € 0.9bn
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30 July 2018 H1 2018 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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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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AMERICAS
€3.9bn
EUROPE
€3.5bn
ASIA- PACIFIC
€2.1bn
Large Industries Electronics Healthcare Industrial Merchant
30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
€9,769m
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INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE ELECTRONICS
and hardgoods in the U.S.
particularly manufacturing, metal fabrication and construction in the U.S.
in the U.S. for cogen and H2
Chemicals
for medical gases and in Canada for HHC
bolt-on acquisitions
America
Installation sales
30 July 2018 H1 2018 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
(2)
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INDUSTRIAL MERCHANT LARGE INDUSTRIES HEALTHCARE
turnarounds in H2
and in Turkey
Eastern Europe
craftsman markets
especially in Northern Europe
(1) Refer to appendix for definitions 30 July 2018 H1 2018 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
and steel), South Korea, Singapore (refining) and Australia (mining)
increase in cylinders and in liquid argon ; higher prices
molecules particularly in Taiwan and South Korea
sales
30 July 2018 H1 2018 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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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health (1) H1 2017 Basic earnings per share adjusted for the free share attribution of October 2, 2017
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H1 2018 G&S operating margin excluding energy improved +30bps compared to H1 2017
30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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* Including fair value of derivatives 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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* PPE: Property, plant and equipment.
30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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30 July 2018 H1 2018 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).
30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
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G&S H1 2018 capex(1) G&S capex(1) / sales
(1) Gross industrial investments. 30 July 2018 H1 2018 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. 30 July 2018 H1 2018 Results The world leader in gases, technologies and services for Industry and Health
< 1 year > 5 years Between 1 and 5 years
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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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 30 July 2018 H1 2018 Results