2012 3rd Quarter - Air Liquide · 2 October 25, 2012 2012 Q3 Revenue Air Liquide, world leader in...

2012 3rd Quarter

Paris, October 25, 2012 Fabienne Lecorvaisier l Chief Financial Officer

François Darchis l Senior Vice-President

Resilient activity

October 25, 2012 Air Liquide, world leader in gases for industry, health and the environment2 2012 Q3 Revenue

Paris, October 25, 2012

Resilience in a contrasted environment

Solid investment dynamics

Innovation: a continued commitment

2012 3rd Quarter

October 25, 2012 Air Liquide, world leader in gases for industry, health and the environment3 2012 Q3 Revenue

Paris, October 25, 2012 Fabienne Lecorvaisier l Chief Financial Officer

2012 3rd Quarter

October 25, 2012 Air Liquide, world leader in gases for industry, health and the environment

Key figures

4 2012 Q3 Revenue

Sales in €mQ3 11

revisedQ3 12 Q3 12/11

as published

Q3 12/11comparable(1)

YTD 12/11comparable(1)

Gas & Services 3,276 3,490 +6.5% +1.6% +2.2%

Engineering & Construction 158 167 +5.7% +2.5% +16.4%

Other Activities 163 146 -10.4% -12.5% -8.9%

Group Total 3,597 3,803 +5.7% +1.0% +2.2%

(1) excluding forex, natural gas and significant scope impacts

October 25, 2012 Air Liquide, world leader in gases for industry, health and the environment2012 Q3 Revenue5

90

95

100

105

110

115

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Robust activity level

(1) Revenue (excluding forex and natural gas), adjusted for the number of days per month

base 100,average 2008

2009 20112010

Quarterly G&S activity indicator(1)

2012

October 25, 2012 Air Liquide, world leader in gases for industry, health and the environment2012 Q3 Revenue

Four quarters of slower growth

(1) excluding forex, natural gas and significant scope impacts. 2009, 2010 and 2011 growth rates are not restated for the integration of Seppic into the G&S activity.

2009 2010 2011

G&S comparable growth(1)

2012

1.6%0.9%

4.0%

1.9%

7.7%

9.7%

11.4%11.3%10.7%

8.3%

-4.6%-5.2%-5.1%

-4.2%

11.0%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

6


Developing economies up +10%

+ 0% + 10%

Advanced economies Developing economies

Comparable G&S sales growth(1)

(YTD 2012/YTD 2011)G&S sales share indeveloping economies

15%16%

19%

21%

2008 2009 2010 2011 YTD

2012

23%

(1) excluding forex, natural gas and significant scope impacts.

+ 4% +0%

-5%

+28%

+18%

+12%

+5%*

*Developing Asia: +9% excluding Electronics

7


Resilience in all zones

G&S sales growth (1)

ME & Africa

Asia Pacific

Americas

€1,728m

€793m

€873m

€96m

Strong Eastern Europe

Solid growth in Canada andLatin America

Dynamic Industrial Merchantin Middle-East

Europe

Business

Declining IndustrialProduction in Japan

Further decline in the South

Economic context

(1) Comparable growth, excluding forex, natural gas and significant scope impacts. LI : Large Industries, IM : Industrial Merchant

Price pressure

Strikes in South Africa

Low natural gas price

Total G&S

€3,490m

Q3 2012 YTD 2012

+14.2%

+17.8%

-0.1%

+0.8%

+2.2%

+5.7%

+0.6%

+1.6%

+3.4%

+1.0% Weak base business

Hurricane Isaac

Strong LI in Dev. Asia andsolid IM in China

Low electronics outside China

8


Gas & Services impacted by the Electronics cycle

+28%

+19%+13%

-8%-11% -12% -12%

-20%

-10%

0%

10%

20%

30%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

+4%

+2%+3%

+2%

+4%

+2%+1%

0%

3%

5%

8%

10%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

+17% +17%

+11%

+2%

+7%

+3% +4%

0%

5%

10%

15%

20%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

+7%

+5%

+2%

+6%

+7%+8%+8%

0%

2%

4%

6%

8%

10%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Industrial Merchant +3% YTD Large Industries +5% YTD

Electronics -11% YTD Healthcare +4% YTD

- 4%excl. E&I

Comparable growth: excluding forex, natural gas and significant scope impacts, relative to the same period in preceding year.

Q3

2012

8%

38% 36%

18%

9


Engineering & Construction order intake remains strong

0

200

400

600

800

1000

1200

2009 2010 2011 2012

1,300

YTD

E&C order intake

In €m

YTD YTD YTD

YTD +84%

Third party E&C sales

134

156 158

258

178188

167

0

100

200

300

Q1

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

532706

In €m

YTD +16%

Comparable growths


Development initiatives delivering

-3,0%

-1,0%

1,0%

3,0%

5,0%

7,0%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

G&S quarterly growth analysis

Base business

Start-ups,Ramp-ups,Site takeovers,Small acquisitions

Significantperimeter


1.9 2.0 2.1

0

0,5

1

1,5

2

YTD 10 YTD 11 YTD 12

In €bn

-0,25

0,25

0,75

1,25


In €bn

Performance preserved

8.79.8

10.3

0

2

4

6

8

10


In €bn

Gas & Services sales

280 270

188

0

100

200

300

2010 2011 2012

In €M

Efficiencies

Net Capex(2) Operating Cash flow(3)

Annual objective 2012> 200 M€

(1) Published growth. (2) Financial investments, including transactions with minorities, net of divestitures. (3) from operations, before WCR.

2.2

+6%+80%

1.41.2

Industrial Financial(2)

YTD

+ 6% (1)

12


2.72.52.7

2.4

1.5

1.5 1.41.6

Dec-

11

Mar-

12

Jun-

12

Sept-

12

High investment decisions in Q3

2012 Q3 Revenue

YTD 09 YTD 10 YTD 11 YTD 12 2009 2010 2011 2012eYTD 09 YTD 10 YTD 11 YTD 12

4.14.024

15

1.5

0.6

In €bn

Investmentdecisions(1)

12-month portfolioof opportunities Start-ups(2)

(1) Industrial and financial investments, including transaction with minority shareholders, net of divestitures (2) Industrial projects > €10m

Developing Economies Advanced Economies

Net capex(1)

4.2

16

In €bn In €bn

1.64.0

27%60 % 47 %(2012e)

2.42.2

17-191.1

1.4

1.2

YTD

Acquisitions

36%

13


2% acquisition contribution to full year growth

2012 Q3 Revenue

YTD G&S closed acquisitions : € 820 M81%

2%

17%

IndustrialMerchant

LargeIndustries

Healthcare

Georgia Gulf (USA) Energas & Engweld(UK)Home Healthcare(Poland)

LVL Médical (France)

Gasmedi (Spain)

Gas distributors(Brazil and Canada)

Americas Europe Asia-Pacific

HomeHealthcare(Korea)

Home Healthcare(Canada)

Large Industries

Healthcare

Industrial Merchant

Middle-East& Africa

Local player(UAE)Jacoby biogas (USA)

14


Financing tailored to Home Healthcare acquisitions

SRI Investors

SRI LabelledEuro bond :

9 years

€ 500m

2.125% coupon

Reaching outto new investors

36%

64%

rating

2012 Q3 Revenue15

Paris, July 30, 2012


Paris, October 25, 2012 François Darchis l Senior Vice-President

Innovation: a continued commitment

2012 3rd Quarter

16


Driving Innovation at Air Liquide

ADJACENT

From existing intonew business

CORE

Optimizing existingproducts

TRANSFORMATIONAL

Developing breakthroughsand creating new markets

Businessmodel

2012 Q3 Revenue

AdvancedTechnology+

+

17

The Hydrogenexample


Core brings legitimacy

2012 Q3 Revenue

H2 for refineriesand chemical large sites

■ 50 large SMR H2 production plants

■ Pipeline network: 1,850 km

■ 1,500 trailers fleet

■ Desulphurization andhydrocracking (refineries)

■ Chemicals specific uses

Distribution

Production

Markets

18


545 km

Core Air Liquide, a worldwide hydrogen partner

2011 H2 sales: € 1.7 bn

2012 Q3 Revenue

40 km

950 km

19

Assets for H2 supply

H2 production units

Main H2 network ■ Reliable and competitive H2 supply

Customer benefit


Adjacent Leveraging core business

2012 Q3 Revenue

H2 for local electricity supply

■ Telecom network availability

■ Electric forklifts and captive fleets

■ Existing core H2 distribution system

■ H2 filling stations for captive fleets

■ 700 bar cylinders

Distribution

■ Existing core H2 capacities (SMR)

■ Blue hydrogen (CCS(1) and biogas projects)

Production

Markets

20

(1) Carbon Capture and Storage


Adjacent Air Liquide serving captive fleets

■ Partnership in Europe forforklift fuel cell design andcommercialization

■ 5-minute easy refill

■ Cost competitive offer vsbattery solution

■ Guaranteed electric motorperformance

Customer benefit

■ Air Liquide already servingwarehouses in North Americaand Europe

21


2015: a new generation for electric vehicles ?

Mc Kinsey report

2012 Q3 Revenue

Paris Motor Show – Oct. 2012

(1)

(1) The region is ordering H2 filling stations. (2) Air Liquide, in the starting blocks, waiting for the H2 car.

Air Liquide dans les startingblocks en attendant la voiture àhydrogène (2)

«

»

22


Transformational Getting ready for clean mobility

2012 Q3 Revenue

H2 for electric car mobility

■ Customer friendly H2 refilling station

■ Nationwide logistic infrastructure

■ FCEV - Fuel Cell Electric Vehicle

■ Existing core H2 capacities (SMR)

■ Blue hydrogen (CCS and biogas projects)

■ Smart grid component (biomass, solar, wind…)

Production

Distribution

Markets

23


Transformational Contributing to FCEV deployment

■ Enhanced driving experience

H2 refilling

FCEV: Fuel Cell Electric Vehicle

■ > 500 km autonomy

■ 5-minute refill andzero CO2 emission

Consumer benefit H2 energy market potential

1% of world car fleet =

€ 15 bn

+

24


Conclusion

2012 Q3 Revenue

■ … leverages its resources

■ … expands its business reach

■ … designs the future

generating sustainable innovation

(= Core)

(= Adjacent)

(= Transformational)

+

+

25

Air Liquide…


2012 Outlook

2012 Q3 Revenue

■ Resilience in a contrasted environment

■ Solid investment dynamic

Q3 2012

Barring a major economic downturn,Air Liquide continues to aim

for growth in net profit in 2012.

2012 objective confirmed

26


Appendix2012 3rd Quarter

27


Impact of currency and natural gas on G&S revenue

2012 Q3 Revenue

Natural Gas Impact +30 +46 +22 0 (9)

In €m

Average currency rate Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

€/USD

€/CAD

€/JP¥

1.41

1.38

109.7

1.35

1.38

104.2

1.31

1.31

104.0

1.28

1.29

102.6

1.25

1.24

98.4

Currency

Natural Gas

In €m Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

€/USD

€/CAD

€/JP¥

Others

(43)

(4)

+3

(13)

+5

(0)

+21

+0

+18

+4

+21

+27

+54

+11

+37

+48

+56

+16

+30

+5

Total currency impact (57) +26 +70 +150 +160

28


Growth in Q3 2012 G&S revenue

2000

2250

2500

2750

3000

3250

3500

Q3 2011 Comparable

growth (1)

Natural gas Change Scope Q3 2012

in €m

<9>

+9

0

+6.5%published

growth

3,276+54

3,490

+1.6%comparable (1)

(1) excluding forex, natural gas and significant perimeter impacts

+160

2012 Q3 Revenue29


Revenue analysis by quarter (1)

2012 Q3 Revenue

Sales in €m (1) Q3 11revised

Q4 11revised

Q1 12revised

Q2 12 Q3 12 Q3 12/11 Q3 12/11comparable(2)

Europe 1,674 1,720 1,747 1,724 1,728 +3.2% +1.0%

Americas 728 722 772 746 793 +8.9% +3.4%

Asia-Pacific 791 787 840 835 873 +10.3% -0.1%

Middle-East& Africa

83 84 84 89 96 +16.1% +14.2%

Gas & Services 3,276 3,313 3,443 3,394 3,490 +6.5% +1.6%

Engineering &Construction

158 258 178 188 167 +5.7% +2.5%

Other Activities 163 174 158 172 146 -10.4% - 12.5%

Group Total 3,597 3,745 3,779 3,754 3,803 +5.7% +1.0%

(1) 2011 figures are restated for the transfer of Seppic from Other activities to the Healthcare segment. (2) Excluding forex, natural gas and significant scope impacts

30


Revenue analysis by quarter (2)

2012 Q3 Revenue

Sales in €m (1) Q3 11revised

Q4 11revised

Q1 12revised

Q2 12 Q3 12 Q3 12/11 Q3 12/11comparable(2)

Industrial Merchant 1,238 1,256 1,281 1,283 1,322 +6.8% +1.4%

Large Industries 1,157 1,174 1,262 1,204 1,253 +8.3% +4.2%

Electronics 317 291 302 308 308 -3.1% -12.0%

Healthcare 564 592 598 599 607 +7.7% +4.6%

Gas & Services 3,276 3,313 3,443 3,394 3,490 +6.5% +1.6%

Engineering& Construction

158 258 178 188 167 +5.7% +2.5%

Other Activities 163 174 158 172 146 -10.4% -12.5%

Group Total 3,597 3,745 3,779 3,754 3,803 +5.7% +1.0%

(1) 2011 figures are restated for the transfer of Seppic from Other activities to the Healthcare segment. (2) Excluding forex, natural gas and significant scope impacts

31


G&S Revenue growth by quarter (3)

2012 Q3 Revenue

Growth aspublished

NaturalGas

CurrencySignificant

scopeComparable

growth(1)

Q1 2011 +15.4% +0.5% +3.5% - +11.4%

Q2 2011 +8.1% +1.6% -3.2% - +9.7%

Q3 2011 +5.9% +1.0% -1.9% -0.9% +7.7%

Q4 2011 +3.5% +1.5% +0.8% -0.7% +1.9%

Q1 2012 +6.3% +0.7% +2.2% -0.6% +4.0%

Q2 2012 +4.9% +0.0% +4.6% -0.6% +0.9%

Q3 2012 +6.5% -0.3% +4.9% +0.3% +1.6%

(1) excluding forex, natural gas and significant scope impacts

32


YTD 2012 Revenue breakdown by region

2012 Q3 Revenue

Large Industries ElectronicsHealthcareIndustrial Merchant

Americas: €2.3bn Asia: €2.5bnEurope: €5.2bn

Middle-East and Africa

AmericasEurope

Asia

27%

39%31%

3%

48%

33%

11%8%

34%

5%

37%

24%

3%

25%

22%

50%Gas & Services YTD 2012 Revenue€10.3bn

33


Europe in Q3

-1% 2% 4%

Industrial Merchant

Large Industries

Q3 Gas & Services sales: € 1,728m

Q3 12/11 Comparable change (1): +1.0%

-0.2%

+2.3%

+3.0%

(1) excluding impact of currency, natural gas and significant scope

■ Large Industries Stabilized steel demand

Solid demand in refining and chemicals

Site takeover in Turkey

■ Industrial Merchant Difficult economic conditions

weighing on Southern Europe

Strong growth in developing Europe

Pricing actions continue

■ Healthcare Back to regular growth, post UK

contract reallocation

First contribution of LVL Médicalin Home Healthcare

More pressure on tariffs

IndustrialMerchant

Large Industries

Healthcare

Electronics

Healthcare

In €m YTD 2012Publ.

growthComp.

growth(1)

Revenue 5,199 +2.1% +0.6%

34

27%

39%

31%

3%


Americas in Q3

-10% -5% 0% 5% 10% 15%

+3.9%

+4.4%

+13.4%

Industrial Merchant

Large Industries

Q3 Gas & Services sales: € 793m

Q3 12/11 Comparable change (1): +3.4%

-16.6%Electronics

7%11%

49%

33%

■ Large Industries Hurricane Isaac disruptions

Lower cogen sales due to decline inelectricity tariffs

Strong growth in South America

■ Industrial Merchant Sustained activity in Canada and

new capacities

Cylinders strong in Latam

■ Healthcare Dynamic Healthcare growth

■ Electronics Unfavorable E&I comparison base


Healthcare

Industrial Merchant

Large Industries

Healthcare

Electronics

-3.7%excl. E&I


growthComp.

growth(1)

Revenue 2,311 +8.2% +5.7%

35


Asia-Pacific in Q3

-5% -1% 3% 7%

Industrial Merchant

Large Industries

Electronics

-1.0%

+7.8%-9.1%

Q3 Gas & Services sales: € 873m

Q3 12/11 Comparable change (1): -0.1%

37%

24%

5%

34%

■ Large Industries Start-up delays in the region

Growth in China at +20%

■ Industrial Merchant Japan still weak

Slower growth in Developing Asia

Sequential growth in Chinese bulk

■ Electronics E&I stabilized at a low level

Japanese industry restructuring

-5.2%excl. E&I


Industrial Merchant

Large Industries

Healthcare

Electronics


growthComp.

growth(1)

Revenue 2,547 +10.9% +0.8%

36


Industrial Merchant pricing

2012 Q3 Revenue

+ 1.7%

+ 6.5%

+ 0.5%

+ 3.1%

+ 0.9%

+0.8%

+ 2.0%

+ 0.8%

+ 6.0%

+ 1.4%

Europe

Americas

Asia-Pacific

Middle-East and Africa

Total Industrial Merchant

Q3 2012 YTD 2012

37


For further information, please contact:

Investor Relations

Virginia Jeanson + 33 (0)1 40 62 57 37

Annie Fournier + 33 (0)1 40 62 57 18

Bastien Maurice + 33 (0)1 40 62 59 38

L’Air Liquide S.A.

Corporation for the study and application of processes developed by

Georges Claude with registered capital of 1,715,511,270.00 euros

Corporate headquarters:

75, Quai d’Orsay

75321 Paris Cedex 07

Tel : +33 (0)1 40 62 55 55

RCS Paris 552 096 281

Communications

Anne Bardot + 33 (0)1 40 62 50 93

Corinne Estrade-Bordry + 33 (0)1 40 62 51 31

www.airliquide.com Follow us on Twitter @AirLiquideGroup

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