PRESS RELEASE AND ACTIVITY REPORT
Regulatory News:
Air Liquide (Paris:AI):
Key Figures (in millions of euros) FY 2018
2018/2017 as published
2018/2017 comparable (a)
Group Revenue 21,011 +3.3%
+6.1% Gas & Services Revenue 20,107
+2.4% +5.2%
Operating Income Recurring (OIR)
3,449 +2.5% +7.6% Group OIR
Margin 16.4% Variation excluding
energy +10 bps Gas &
Services OIR Margin 18.3%
Variation excluding energy +30 pbs
Net Profit (Group Share) 2,113 +4.2% (b)
+ 8.7% (c)
Earnings per Share (in euros)
4.95 +4.0% (b) 2018
proposed Dividend per Share (in euros) 2.65
+0.0% Net Cash Flow from Operating
Activities 4,716 +10.9% Net Debt on
12/31/2018 € 12.5 Bn € -0.8 Bn
Return on Capital Employed after tax - ROCE
8.0% + 30 bps (d) + 60
bps (e)
(a) Change excluding the currency, energy
(natural gas and electricity) and significant scope impacts, see
reconciliation in appendix. (b) Change compared to 2017 recurring
net profit, excluding the exceptional items and the impact of the
US tax reform that had no impact on cash flow in 2017.
(c) Change compared to 2017 recurring net profit and excluding
currency. (d) Change compared to 2017 recurring ROCE. (e) Change
compared to 2017 recurring ROCE and excluding currency.
Commenting on the results for 2018, Benoît Potier, Air
Liquide Chairman and CEO, stated:
“2018 was a particularly strong year, whether we are looking
at sales growth to 21 billion euros and the rise in net profit
to 2.1 billion euros or the efficiencies and synergies
achieved as well as the high level of industrial investment
decisions.
Sales growth is the highest since 2011. All
activities/businesses are growing, in particular Gas &
Services activities, which account for 96% of the Group’s
revenue, with the last quarter particularly dynamic in Electronics
and Industrial Merchant. From a geographic perspective, growth
was also seen across the board, especially for the Americas and
Asia Pacific, particularly China.
The Airgas synergies are achieved a year ahead of
schedule, confirming that the integration is now successfully
completed. In addition, operating efficiency objectives were
surpassed, contributing to the improved operating margin in
Gas & Services, excluding the energy impact. As of
2019, the annual efficiency objective is raised to
400 million euros for the Group, which is 100 million
euros more than the objective initially announced in the
NEOS program.
Cash flow grew and contributed to a significant reduction in
the debt ratio, to 69%. The Group’s balance sheet is strong and
its ROCE improved, reaching 8.3% excluding the currency
impact, in line with the NEOS objective.
In a context where industrial opportunities remain substantial,
the Group’s investment decisions reached more than
3 billion euros. Investment backlog amounted to 2.2
billion euros, supporting future growth.
Accordingly, assuming a comparable environment, Air Liquide
is confident in its ability to deliver net profit growth in 2019,
calculated at constant exchange rate.”
2018 Highlights
- Developments for industry: Signature of new long-term
contracts for the construction of hydrogen production units (South
Korea, Benelux) and two airgas units (Russia); supply of oxygen for
a strategic customer from the Group’s network in the United States;
entry into the Kazakhstan market; record year for Electronics with,
in particular, nine ultra-pure nitrogen supply investments and
excellent reception of the enScribeTM offering; ramp-up of the
world’s largest airgas unit (South Africa).
- New acquisitions in Healthcare: In the Saudi Arabian
home healthcare sector and investment in EOVE, a French startup
specializing in connected portable ventilators.
- Innovation: Inauguration of the Paris Innovation Campus
on the “Plateau de Saclay”, which gathers the Group’s largest
R&D center, business experts and a deep-tech startup
accelerator in a single place.
- The Group announces its Climate objectives with a
commitment to low carbon growth and a 30% reduction in its carbon
intensity between 2015 and 2025. Signature of a contract to buy 50
megawatts (MW) of renewable electricity from wind farms.
- Hydrogen Energy:
- Mobility: Announcement of the construction of the first
world-scale liquid hydrogen production unit in the United
States;
- Technological advancement with the inauguration of a pilot
electrolyzer in Denmark for the production of carbon-free
hydrogen;
- New partnership in China and Japan to foster Hydrogen
development;
- Hydrogen Council: 54 global multinationals are members
of the Council, co-chaired by Benoît Potier.
- Development of the biomethane market with the
commissioning of 5 new production units (United States, France,
United Kingdom) and new investment decisions in Northern Europe and
in the United States.
Group revenue for 2018 stood at 21,011 million
euros, up +6.1% on a comparable basis and above the high
end of the NEOS target range. It was supported by high Gas &
Services sales growth, +5.2%, increasing sequentially, an
improvement in Engineering & Construction (+31.5%) and
strong growth in Global Markets & Technologies
(+29.6%). The negative currency impact of -3.6% in 2018
eased over the year, mainly due to a stronger US dollar against the
euro. The energy impact, which was negative during the 1st quarter,
turned positive as of the 2nd quarter, and reached +1.3% over the
year. The sale of the Airgas Refrigerants business at the end of
2017 led to a significant scope impact of -0.5% in 2018. Published
Group revenue was therefore up +3.3% over 2018.
Gas & Services revenue reached
20,107 million euros in 2018, up +5.2% on a
comparable basis. All zones contributed to the growth.
- Gas & Services revenue in the
Americas totaled 7,982 million euros in 2018. Growth,
which continued to improve quarter-on-quarter, stood at
+5.2% for the year. Large Industries activity level was high
(+5.4%) in both air gases and hydrogen. Industrial Merchant sales
posted strong growth (+4.6%) with a high price impact. Healthcare
revenue continued to improve markedly (+8.2%), despite a limited
contribution from bolt-on acquisitions. Electronics posted revenue
growth of +6.7% over the year.
- Revenue in the Europe zone
totaled 7,111 million euros, up +2.5% over the year.
Large Industries sales improved (+1.9%) in particular in air gases.
Growth was solid in Industrial Merchant (+3.2%), with price impacts
increasing throughout the year. Healthcare continued its steady
growth (+4.8%), mainly driven by organic sales growth.
- Revenue in the Asia Pacific zone
totaled 4,359 million euros in 2018, up +8.2%.
In Large Industries, higher sales (+3.5%) benefitted from the
ramp-up of units in the 1st half and from start-ups at the end of
the year. Industrial Merchant was up markedly in the zone
(+7.0%), especially in China. Electronics revenue posted record
growth of +17.1%, with strong gas sales and exceptionally high
Equipment & Installation sales.
- Revenue in the Middle East and
Africa zone amounted to 655 million euros, up
+15.5% over the year. In Large Industries, 2018 sales
benefited from the start-up in December 2017 of the largest Air
Separation Unit in the world in South Africa. Business momentum
remained high in Egypt.
Gas & Services revenue benefited from a strong contribution
from all business lines. Industrial Merchant growth was
solid, +4.5%, supported by high price impacts (+2.5%), which
were stronger in the 2nd half (+3.1%) than in the 1st half (+1.9%).
Large Industries, +4.7%, benefited in particular from
a major start-up in South Africa in December 2017 and sustained
demand in oxygen, notably in the Americas and Asia. Sales
growth in Healthcare was strong, +5.7%, despite a
limited contribution from bolt-on acquisitions. Electronics
posted record growth of +9.9%, with a marked increase in
Carrier Gases and Advanced Materials and exceptionally high
Equipment & Installation sales.
Engineering & Construction revenue for 2018 totaled
430 million euros, up +31.5% compared with 2017.
It benefited from the gradual improvement in order intake seen
since the beginning of 2017.
Global Markets & Technologies sales were up
+29.6% in 2018 at 474 million euros, the biogas
activity being the main contributor to this growth.
The additional Airgas synergies in 2018 amounted
to 76 million US dollars and reached a cumulated
290 million US dollars since the acquisition. The
300 million-US dollar target of cumulated synergies is
therefore reached in the 1st quarter of 2019,
i.e., more than a year before initially planned.
For the year, efficiencies amounted to
351 million euros, largely above the NEOS company
program’s annual target of more than 300 million euros. The
strong investment momentum in our customers’ main markets led to an
increase in investment opportunities for the Group and in the
number of new long-term contracts signed. In this favorable
environment for future growth and to ensure reaching the NEOS
target of a ROCE in excess of 10% by 2021-2022, the Group is
significantly strengthening its efficiency program. As of
2019, the annual target for efficiencies is therefore set at more
than 400 million euros.
The Group’s operating income recurring (OIR) reached
3,449 million euros in 2018, +6.7% excluding the currency
impact. The operating margin (OIR to revenue) stood at 16.4%
and at 16.6% excluding the energy impact, which corresponds
to a +10 basis point improvement compared with 2017.
Excluding the energy impact, the operating margin for Gas &
Services increased by +30 basis points compared with
2017.
Net profit (Group share) amounted to
2,113 million euros in 2018, up +4.2% compared
with the “recurring” net profit for 2017 which excluded exceptional
items and the impact of the US tax reform that had no impact on
cash flow, and up +8.7% when also excluding the currency
impact.
Cash flow from operating activities before changes in working
capital requirement totaled 4,138 million euros and stood at
19.7% of Group sales. It allowed in particular the financing
of net industrial capital expenditures, which reached
2.2 billion euros, and the decrease of the debt-to-equity
ratio, down from 80% at the end of 2017 to 68.8% at the end of
2018. Gross industrial capital expenditures represented
10.7% of sales.
Industrial and financial investment decisions exceeded
3.1 billion euros, a +22% increase compared with
2.6 billion euros in 2017. This was a record level excluding
major acquisitions. Despite this particularly high level of
investment decisions, the 12-month portfolio of investment
opportunities totaled 2.6 billion euros, as of December
31, 2018, up 500 million euros compared with 2017.
The return on capital employed after tax (ROCE) stood at
8.0%, a +30 basis point increase compared with the
recurring ROCE at the end of 2017 (7.7%). Excluding the currency
impact, ROCE improved by +60 basis points. The Group
confirmed the NEOS target of returning to a ROCE of above 10% by
2021-2022.
Moreover, for many years now, Air Liquide has been committed to
a sustained growth, notably to limit its own CO2 emissions
as well as those of its customers. The Group presented on November
30, 2018 its Climate objectives, in particular the 30%
reduction objective in its carbon intensity1 between
2015 and 2025, with a global approach that includes its assets,
its customers, and ecosystems. These objectives are the most
ambitious of its sector and are in line with its NEOS company
program.
The Air Liquide Board of Directors, which met on February
13, 2019, approved the audited financial statements for fiscal year
2018. A report with an unqualified opinion is being issued by the
Statutory Auditors.
1 In kg CO2 equivalent / € Operating income recurring before
depreciation and amortization.
At the next Shareholders’ Meeting, the Board of Directors will
propose the payment of a dividend of 2.65 euros per share,
stable compared to previous year. The ex-dividend date has been set
for May 20, 2019, with payment set for May 22, 2019. In addition,
the Board of Directors has decided to allot one free share for
every 10 shares held in the second half of 2019. The allotment date
is set for October 9, 2019.
The Board also approved the draft resolutions to be submitted to
a vote by the shareholders at their annual meeting scheduled for
May 7, 2019, including proposed reappointments of the following
board members for a four-year term:
- Ms. Siân Herbert-Jones, member
of the Company’s Board of Directors since 2011 and Chairman of the
Audit and Accounts Committee since 2015;
- Ms. Geneviève Berger, member of
the Company’s Board of Directors since 2015 and member of the
Environment and Society Committee since 2017.
At the close of the Shareholders’ Meeting of May 7, 2019,
assuming these resolutions are approved, the Board of Directors
will be composed of 12 members, of whom 11 are elected and one is
an employee director. The Board will be made up of seven men and
five women and will include six members who are foreign
nationals.
In addition, the Board has set the remuneration of the executive
officers, applicable to Mr. Benoît Potier as Chairman and CEO for
2018 and 2019, details of which will be published on the Air
Liquide website. In compliance with the Sapin 2 Law, the
shareholders are invited to vote on the 2018 remuneration elements
of the Chairman and CEO and on the principles and criteria used for
the determination of his compensation for 2019.
Management Report’s Table of
Content
2018 PERFORMANCE
6
Key Figures
6
Income Statement
7
2018 Cash Flow and Balance Sheet
16
INVESTMENT CYCLE AND FINANCING
18
Investments
18
2018 Financing
21
OUTLOOK
23
APPENDICES
24
Estimated impact of IFRS16 on the fiscal
year 2019
24
Currency, energy and significant scope
impacts (Year)
25
Currency, energy and significant scope
impacts (Quarter)
26
4th Quarter 2018 Revenue
27
Geographic and Segment Information
27
Consolidated Income Statement
28
Consolidated Balance Sheet
29
Consolidated Cash Flow Statement
30
Return on Capital Employed – ROCE
32
2018 PERFORMANCE
Unless otherwise specified, all variations
on revenue commented below are made on a comparable basis,
which excludes the currency, energy (natural gas and electricity)
and significant scope impacts. The reference to Airgas
corresponds to the Group Industrial Merchant and Healthcare
activities in the United States.
Key Figures
(in millions of euros)
FY
2017 FY 2018 2018/2017 published
change 2018/2017 comparable change (a)
Total Revenue 20,349 21,011
+3.3% +6.1% Of which Gas & Services
19,642 20,107 +2.4% +5.2% Operating
Income Recurring 3,364 3,449 +2.5%
+7.6% Operating Income Recurring (as % of Revenue) 16.5%
16.4% Variation excluding energy
+ 10 bps Other
Non-Recurring Operating Income and Expenses (344)
(162) Net Profit (Group Share)
2,200 2,113 +4.2% (b) +8.7% (c)
Adjusted
Earnings per Share (in euros) 5.16
4.95 +4.0% (b)
Adjusted Net Dividend per Share (in euros)
2.65 2.65 +0.0%
Net Cash Flow from Operating Activities (d) 4,254
4,716 +10.9% Net Capital Expenditure (e)
1,850 2,272 Net Debt
13,371 12,535
Debt-to-Equity ratio 80% 68.8%
Return On Capital Employed – ROCE after tax
8.2 % 8.0 % +30 bps (f)
+60 bps (g)
(a) Change excluding the
currency, energy (natural gas and electricity) and significant
scope impacts, see reconciliation in appendix.(b)
Change compared to 2017 recurring net profit, excluding
the exceptional items and the impact of the US tax reform that had
no impact on cash flow in 2017.(c) Change compared to
2017 recurring net profit and excluding
currency.(d) Cash flow after changes in working
capital requirements and other items.(e) Including
transactions with minority shareholders.(f) Change
compared to 2017 recurring ROCE.(g) Change compared to
2017 recurring ROCE and excluding currency.
Income Statement
REVENUE
Revenue
(in millions of euros)
FY 2017 FY 2018 2018/2017
published change 2018/2017 comparable change Gas
& Services 19,642 20,107 +2.4%
+5.2% Engineering & Construction 335 430
+28.4% +31.5% Global Markets & Technologies 372
474 +27.3% +29.6%
TOTAL REVENUE
20,349 21,011 +3.3%
+6.1% Revenue by quarter
(in millions of euros)
Q1 2018 Q2 2018 Q3 2018
Q4 2018 Gas & Services 4,831 4,938
5,066 5,272 Engineering & Construction 85
95 105 145 Global Markets & Technologies
94 119 100 161
TOTAL REVENUE
5,010 5,152 5,271
5,578 2018/2017 Group published change
-3.2% +0.7% +6.6%
+9.1% 2018/2017 Group comparable change
+6.0% +5.6% +6.0%
+6.8% 2018/2017 Gas & Services comparable change
+5.0% +5.1% +5.2%
+5.6%
Group
Group revenue for 2018 stood at 21,011 million
euros, up +6.1% on a comparable basis and above the high
end of the NEOS target range. It was supported by high Gas &
Services sales growth, +5.2%, which increased
quarter-on-quarter, an improvement in Engineering &
Construction (+31.5%) and strong growth in Global
Markets & Technologies (+29.6%). The negative
currency impact of -3.6% in 2018 eased over the year, mainly due to
a stronger US dollar against the euro. The energy impact, which was
negative during the 1st quarter, turned positive as of the 2nd
quarter, and reached +1.3% over the year. The sale of the Airgas
Refrigerants business at the end of 2017 led to a significant scope
impact of -0.5% in 2018. Published Group revenue was therefore up
+3.3% over 2018.
Gas & Services
Gas & Services revenue reached 20,107 million
euros in 2018, up +5.2% on a comparable basis. This was
driven by a strong contribution from all business lines and all
zones. Industrial Merchant growth was solid, +4.5%,
supported by high price impacts (+2.5%), which were stronger in the
2nd half (+3.1%) than in the 1st half (+1.9%).
Large Industries, +4.7%, benefited in particular from a
major start-up in South Africa in December 2017 and sustained
demand in oxygen, notably in the Americas and Asia. Sales
growth in Healthcare was strong, +5.7%, despite a limited
contribution from bolt-on acquisitions. Electronics posted record
growth of +9.9%, with a marked increase in Carrier Gases and
Advanced Materials and exceptionally high Equipment &
Installation sales. As published revenue was up +2.4%; the energy
impact, at +1.4%, did not offset the unfavorable currency and scope
impacts (at -3.7% and -0.5% respectively).
Revenue by geography and business line
(in millions of euros)
FY 2017 FY 2018 2018/2017
published change 2018/2017 comparable change
Americas 8,150 7,982 -2.1% +5.2% Europe
6,776 7,111 +5.0% +2.5% Asia-Pacific
4,081 4,359 +6.8% +8.2% Middle East
& Africa 635 655 +3.2% +15.5%
GAS & SERVICES REVENUE 19,642
20,107 +2.4% +5.2% Large
Industries 5,336 5,685 +6.6% +4.7%
Industrial Merchant 9,261 9,181 -0.9%
+4.5% Healthcare 3,401 3,486 +2.5%
+5.7% Electronics 1,644 1,755 +6.7%
+9.9%
Americas
Gas & Services revenue in the Americas totaled 7,982
million euros in 2018. Growth, which continued to improve
quarter-on-quarter, stood at +5.2% for the year. Large
Industries activity level was high (+5.4%) in both air gases and
hydrogen. Industrial Merchant sales posted strong growth (+4.6%)
with a high price impact. Healthcare revenue continued to improve
markedly (+8.2%), despite a limited contribution from bolt-on
acquisitions.
- Large Industries posted revenue
growth of +5.4% in 2018. The start-up of the OCI unit in the
United States at the end of the 2nd quarter and the ramp-up of
units in Latin America contributed to the increase in oxygen
volumes. Hydrogen sales were also up, driven by high demand. The
cogeneration activity in Canada enjoyed favorable electricity
market conditions in Alberta in 2018.
- Industrial Merchant sales were
up +4.6% over the year. Growth in the United States was
driven by very solid cylinder gas and hardgoods sales, which
benefited from favorable conditions in most end markets, in
particular in Metal Fabrication, Construction and Energy. In
Canada, cylinder gas and hardgoods sales were up, in particular in
the Metal Fabrication end market, and offset weaker liquid nitrogen
volumes for oil well services in Alberta. Growth in South America
retained momentum, with a marked increase in liquid gas volumes in
Brazil in particular. Price impacts increased towards the end of
the year, reaching +4.2% in the 4th quarter, and stood at
+3.0% for the year, in line with inflation.
- Healthcare revenue grew
strongly, +8.2%, in 2018 despite a limited contribution from
bolt-on acquisitions. Medical Gases growth was strong in the United
States, driven in particular by the success of cylinders with a
digital interface and increased sales to proximity care customers.
Business momentum continued in Latin America, in particular in
Brazil and Colombia, notably in Home Healthcare.
- Electronics posted revenue
growth of +6.7% over the year, with an increase in Carrier
Gases and Advanced Materials sales and exceptionally high
Equipment & Installation sales.
Europe
Revenue in the Europe zone totaled 7,111 million euros,
up +2.5% over the year. Large Industries sales improved
(+1.9%) in particular in air gases. Growth was solid in Industrial
Merchant (+3.2%), with price impacts increasing throughout the
year. Healthcare continued its steady growth (+4.8%), mainly driven
by organic sales growth.
- Large Industries revenue
was up +1.9% in 2018, with air gas sales increasing, in
particular in France, Benelux and Italy, and increased cogeneration
activity in Benelux. Hydrogen sales were impacted in the 2nd half
by major customer turnarounds, in particular in Benelux. Momentum
was particularly strong in Turkey with the start-up of a new unit
during the 4th quarter. The Group also launched its operations in
Kazakhstan during the 3rd quarter with the takeover of a hydrogen
production unit to meet the needs of the national oil company.
- Industrial Merchant sales were
up +3.2% in 2018, with growth solid throughout the year and
particularly strong during the 4th quarter at +4.7%. The majority
of the countries contributed to this growth. Cylinder gas sales
improved at a faster pace in the 2nd half of the year, but the
increase remained below that of liquid gas sales. Growth continued
at a very high pace in Turkey and in Eastern Europe, in particular
in Poland and Russia. Price impacts increased quarter-on-quarter,
gradually catching up with the rate of inflation, and reached
+1.5% for the year and +2.6% for the 4th quarter.
- Healthcare continued to improve
steadily posting mostly organic sales growth of +4.8%, with
bolt-on acquisitions having a limited contribution. Home Healthcare
momentum remained very strong with, in particular, a marked
increase in the number of diabetic patients in Scandinavia. Growth
in sales of Medical Gases for hospitals was impacted by constant
price pressure. Specialty Ingredients revenue grew
significantly.
Asia Pacific
Revenue in the Asia Pacific zone totaled 4,359 million
euros in 2018, up +8.2%. In Large Industries, higher
sales (+3.5%) benefitted from the ramp-up of units in the 1st half
and from start-ups at the end of the year. Industrial Merchant was
up markedly in the zone (+7.0%), especially in China. Electronics
revenue posted record growth of +17.1%, with strong gas sales and
exceptionally high Equipment & Installation sales.
- Large Industries sales were up
+3.5% in 2018, driven by the contribution from the ramp-up
of units during the 1st half and from several start-ups in China at
the end of the year. These additional sales largely offset the loss
of revenue from the disposal of three isolated units in Northern
China at the end of 2017. Customer demand was solid, in particular
for hydrogen in South Korea and for air gases in South-East
Asia.
- Industrial Merchant revenue grew
strongly, +7.0%, over the year, with performances varying
greatly by country. In China, growth exceeded +15% for the year,
driven by the strong increase in cylinder gases and liquid argon
volumes as well as by higher prices. Revenue in Japan declined
slightly. Sales were up in Australia, notably in liquid gas for the
mining sector. Price impacts stood at +1.8% for the year and
at +1.2% for the 4th quarter, due to softer price impact in China
following five consecutive quarters of strong growth.
- Electronics revenue posted a
record increase of +17.1% in 2018. This was driven by strong
momentum for Advanced Materials, in particular in South Korea,
China and Taiwan, and the ramp-up of Carrier Gases units in
Singapore, Taiwan, China and Japan.
Equipment & Installations sales were also
exceptionally high, and posted growth above +50%.
Middle East and Africa
Revenue in the Middle East and Africa zone amounted to 655
million euros, up +15.5% over the year. In
Large Industries, 2018 sales benefited from the start-up in
December 2017 of the largest Air Separation Unit in the world in
South Africa. Business momentum remained high in Egypt, with the
start-up of an Air Separation Unit during the 1st quarter 2018 and
growing volumes in Industrial Merchant. Healthcare continued its
development, in particular in Saudi Arabia, where an acquisition at
the end of 2017 led to the local launch of the Home Healthcare
activity.
Engineering & Construction
Engineering & Construction revenue for 2018 totaled
430 million euros, up +31.5% compared with 2017.
It benefited from the gradual improvement in order intake seen
since the beginning of 2017.
Order intake reached 807 million euros at the end of
December 2018, a double-digit increase compared with 2017. Air
Separation Units accounted for more than half of all orders. These
included Group projects and third-party customer orders, notably in
Asia.
Global Markets & Technologies
Global Markets & Technologies sales were up +29.6% in
2018 at 474 million euros. The main contributor to this
growth was the biogas activity, which benefited from the ramp-up of
a major landfill biogas purification unit in the United States and
four smaller farm waste biogas purification units in France
and in the United Kingdom. Maritime and Advanced Technologies
activities also posted strong growth.
Order intake was up more than +30% at the end of December and
reached 460 million euros.
Focus – Global Markets & Technologies
- Air Liquide and 10 large Japanese
companies, representing several industries and finance, announced
the creation in March of the “Japan H2 Mobility” consortium
for the purpose of accelerating the deployment in Japan of hydrogen
stations and fuel cell electric vehicles. The 11 founding companies
will contribute to the development of a large-scale hydrogen
infrastructure in order to build a network of 320 stations by
2025, and 900 by 2030. Today, there are about 100 stations already
in operation in Japan. For its part, Air Liquide will install
and operate some 20 stations by 2021.
- In March, Air Liquide inaugurated a new
hydrogen station near Versailles in France. This station
will fuel two hydrogen-powered buses, scheduled for
rollout in 2019, and supplement the Paris hydrogen taxi
fleet “Hype” which is developing rapidly. This is the third
station that has been installed by Air Liquide in the Greater Paris
Area.
- Air Liquide has commissioned three
new biomethane production units, in the United States, in France,
and in the United Kingdom in the 1st quarter 2018, doubling its
biomethane production capacity, which now stands at 60 MW, the
equivalent of 500 GWh for a full year of production. Over the
course of the last four years, the Group has decided around 100
million euros in investments in biomethane production. The
Group operates 10 production units around the world, designed to
purify biogas in order to transform it into biomethane and inject
it into the natural gas network.
- Early September, Air Liquide
inaugurated in Hobro, Denmark, HyBalance, a pilot site for the
production of carbon-free hydrogen, in the presence of the
project’s partners. This facility uses electrolysis
technology and allows to balance the electricity grid
and store surplus electricity in the form of hydrogen that will
be used in industry and transportation. The electrolyser, with a
capacity of 1.2 MW, enables the production of around 500 kg of
hydrogen a day without releasing CO2. As part of this project
initiated in 2016, Air Liquide developed, built, and is
operating the facility that produces hydrogen from water
electrolysis as well as the filling center for its customers
delivered by trailers.
- At the end of September, Air Liquide
inaugurated its Paris Innovation Campus on the “Plateau de
Saclay”, in the Paris area. This new Campus illustrates the
Group’s open innovation approach, especially on energy
transition and environment, healthcare and digital transformation.
It includes Air Liquide’s largest Research & Development
Center, a fully renovated center with an investment of €50
million. It is a high-performance energy building allowing to test
new clean energies: fuel cell, photovoltaic panels, 100% biomethane
natural gas, and 100% renewable electricity. It brings together
almost 500 people, including 350 researchers. From 2019, the
Innovation Campus will also host a deep tech start-up
accelerator.
- At the end of November, Air Liquide
announced the construction of the first world scale liquid
hydrogen production unit dedicated to the hydrogen energy
markets, located in the Western U.S. Air Liquide expects
to invest more than 150 million US dollars for the
production of nearly 30 tons of hydrogen per day that will serve
the growing needs of the hydrogen mobility market in
California.
- At the end of January 2019, Air Liquide
announced that it acquired an 18.6% stake in the capital of the
Canadian company Hydrogenics Corporation, a leader in
electrolysis hydrogen production equipment and fuel cells. This
strategic transaction represents an investment of 20.5 million
US dollars (18 million euros). Air Liquide and Hydrogenics have
also entered into a technology and commercial agreement to
jointly develop electrolysis technologies.
OPERATING INCOME RECURRING
Operating income recurring before depreciation and
amortization reached 5,215 million euros, up
+1.4% as published compared with 2017, and +5.3%
excluding the currency impact.
Purchases were up +7.2%, in particular due to the
increase in energy prices. Equipment purchases were also up for the
Equipment & Installation activity in Electronics as well as for
Engineering & Construction. Besides, the continued attention
paid to costs and efficiencies allowed for personnel costs
and other expenses and income to grow at a slower pace than
sales (+0.2% and +0.8% respectively, compared with published sales
growth of +3.3%).
Depreciation and amortization reached 1,766 million
euros, down -0.7% due to the currency impact. Excluding the
currency impact and despite the impact of start-ups and ramp-ups,
depreciation and amortization growth remained lower than revenue
growth. This development also reflected the large number of
contract renewals in 2018 in our main Large Industries basins.
At the end of 2018, Airgas synergies represented a
cumulated 290 million US dollars since the acquisition
in May 2016. These included 231 million US dollars of
cost synergies, i.e., more than the initial objective, and
59 million US dollars of growth synergies. The
300 million-US dollar target of cumulated synergies is
therefore reached in the 1st quarter of 2019,
i.e., more than a year before initially planned. The
integration of Airgas is now complete.
For the 2018 fiscal year, synergies amounted to 76 million
US dollars. The share of growth synergies continued to rise
and represented more than 40% of synergies for the year. These came
from the rollout of cross-selling offerings in the United States,
such as small onsite generators using Air Liquide technology
offered to Airgas customers and cylinder gases and hardgoods now
available to Air Liquide customers. Supporting Airgas customers in
their expansion in Canada and Mexico is another example of growth
synergies.
For the year, efficiencies amounted to
351 million euros, largely above the NEOS company
program’s annual target of more than 300 million euros. They
included a contribution from Airgas for the first time in 2018,
which amounted to 31 million euros. They represented savings of
2.3% of the cost base and 2.9% excluding Airgas. Industrial
Merchant was the greatest contributor, with more than one third of
efficiencies, followed by Large Industries and Healthcare.
Moreover, approximately 50% of these efficiencies related to
industrial projects which mainly target a decrease in logistic
costs and the optimization of production unit operation. The
accelerated rollout of remote operation centers (Smart Innovative
Operations, SIO) was a major example of this in 2018. Almost one
third of efficiencies related to procurement savings, notably for
the purchases of molecules in Electronics, equipment in Home
Healthcare, and energy in Large Industries. The remaining
efficiencies mainly related to administrative efficiencies and
realignment plans in several countries and businesses, including
Engineering & Construction.
The strong investment momentum in our customers’ main markets
led to an increase in investment opportunities for the Group and in
the number of new long-term contracts signed. In this favorable
environment for future growth and to ensure reaching the NEOS
target of a ROCE in excess of 10% by 2021-2022, the Group is
significantly strengthening its efficiency program. As of
2019, the annual target for efficiencies is therefore set at more
than 400 million euros, compared with a target of more
than 300 million euros previously. Half of the additional
efficiencies will be related to the integration of Airgas in the
program and half from the reinforcement of asset pooling and
platform sharing projects, as well as an acceleration in the
implementation of digital solutions.
The Group’s operating income recurring (OIR) reached
3,449 million euros in 2018, a published increase of +2.5%,
or +6.7% excluding the currency impact. The operating margin
(OIR to revenue) stood at 16.4% and 16.6% excluding the
energy impact, which corresponds to a +10 basis point
improvement compared with 2017.
Focus - Purchases and Efficiencies
- One year after the launch of the first
remote operation center in France, Air Liquide
inaugurated in January 2018 in Malaysia its Smart
Innovative Operations (SIO) Center for the Southeast Asia
Pacific region. The SIO Center enables the remote management of
production for 18 Air Liquide Large Industries production
units spanning eight countries across the region, as well as
optimizing energy consumption and improving reliability at these
sites. Air Liquide invested 20 million euros in this
project.
- At the end of November, Air Liquide
announced a new agreement to purchase 50 megawatts (MW) of
renewable wind electricity from a subsidiary of NextEra
Energy Resources, LLC, the world’s largest generator of renewable
energy. By using the wind-generated electricity, Air Liquide
will save 1.5 million tons of CO2 emissions
over the term of the agreement.
Gas & Services
Operating income recurring for Gas & Services amounted to
3,679 million euros, an increase of +2.6% as published
compared with 2017. The operating margin as published was 18.3%.
Excluding the energy impact, it stood at 18.6%,
representing a +30 basis point increase compared with
2017.
In an environment where global inflation is stronger, sales
prices increased +1.5% for the year, thanks in particular to the
Industrial Merchant business which was up +2.5%. Prices were
down slightly in Electronics and almost flat in Healthcare.
Efficiencies totaled 315 million euros in 2018 for
Gas & Services.
Gas & Services Operating margin (a)
2017
2018 2018,
excluding energy
Americas 16.8% 17.2% 17.2% Europe 19.3%
19.2% 19.8% Asia-Pacific 19.7% 19.2%
19.5% Middle East & Africa 17.2% 16.0%
15.0%
TOTAL 18.3% 18.3%
18.6%
(a) Recurring operating income/revenue, as
published figures
Operating income recurring for the Americas zone stood at
1,369 million euros in 2018, stable (+0.3%)
compared with 2017 due to the depreciation of the US dollar against
the euro and the disposal of Airgas Refrigerants activity.
Excluding the energy impact, the operating margin stood at 17.2%,
an increase of +40 basis points compared with 2017. The
Industrial Merchant operating margin improved markedly, notably due
to the contribution from Airgas synergies and a high price impact.
Conversely, strong Equipment & Installation sales in
Electronics and the disposal of Airgas Refrigerants business had a
dilutive effect on the margin.
Operating income recurring in the Europe zone reached
1,368 million euros, an increase of +4.5%.
Excluding the energy impact, the operating margin was 19.8%, a
+50 basis point increase mainly due to price impact getting
stronger throughout the year in Industrial Merchant and
efficiencies generated across all business lines in the zone.
Moreover, the active management of the business portfolio that led
to the disposal of a small Equipment & Installation
business in Electronics also had an accretive impact on the
margin.
Operating income recurring in the Asia Pacific zone stood
at 837 million euros, an increase of +4.1%. Excluding
the energy impact, the operating margin was 19.5%, down -20
basis points. The exceptionally high level of
Equipment & Installation sales in Electronics and
several Large Industries unit start-ups in China during the 2nd
half had a slightly dilutive impact on the margin. Nevertheless,
the Industrial Merchant operating margin improved, driven by
cylinder gas sales growth and efficiencies.
Operating income recurring for the Middle East and Africa
zone amounted to 105 million euros, a decrease of
-3.9% compared with 2017. Excluding the energy impact, the
operating margin totaled 15.0%, a decrease of -220 basis
points. After a transitional period in relatively exceptional
operating conditions, the hydrogen production units in Yanbu, Saudi
Arabia, have now reached their nominal operating mode marked by a
structural adjustment of the operating margin.
Engineering & Construction
Operating income recurring for Engineering & Construction
totaled -4 million euros, penalized by a business volume
which remained insufficient. Nevertheless, the gradual improvement
in the business contributed to the return to a positive operating
income recurring in the 2nd half which should continue to improve
gradually to reach a margin of between 5% and 10% in the medium
term.
Global Markets & Technologies
Operating income recurring for Global Markets & Technologies
reached 50 million euros with an operating margin of
10.5% for the year; it was higher in the 2nd half (12.0%). A
portion of these activities is in start-up phase and the margin
level, which depends on the nature of the projects carried out
during the period, may vary significantly.
Research & Development and Corporate costs
Research & Development expenses and Corporate costs stood at
277 million euros, a +14.2% increase compared with
2017, due to an increase in research and the ramping-up of the
Group’s digital transformation.
NET PROFIT
Other operating income and expenses showed a net
balance of -162 million euros. This was mainly related to costs
for realignment plans in various countries and businesses, in
particular Engineering & Construction, Airgas integration costs
and provisions for exceptional geopolitical risks.
The financial result of -353 million euros was down
compared with 2017 (-489 million euros). Net finance costs, at
-303 million euros, were down -28.1% and benefited from a
non-recurring gain of around 55 million euros generated during
the 1st half of the year by the unwinding of hedging instruments
relating to debt restructuring in the United States. Excluding this
impact, the average cost of net indebtedness, at
3.0%, was down by -20 basis points compared with
2017.
Income tax expense stood at 731 million euros, a
+523 million euros increase compared with 2017 when an
exceptional non-cash gain of 586 million euros was recognized
mainly due to the US tax reform. The effective tax rate was
24.9% in 2018, a +450 basis point improvement over the
recurring effective tax rate of 2017. This decrease was mainly due
to the reduction of the US federal income tax rate from 35% to 21%
coupled with exceptional items, notably in France during the 1st
half of the year and in the Netherlands during the 2nd half of the
year.
The share of profit of associates amounted to 4
million euros, compared with 5 million euros in 2017. The
share of minority interests in net profit reached
94 million euros, an increase of +2.2%, as the profit
from subsidiaries with minority shareholders rose, particularly in
China.
For the record, net profit from discontinued operations
for 2017 (-37 million euros) reflected the impact of the
disposal of Air Liquide Welding.
Net profit (Group share) amounted to
2,113 million euros in 2018, down -3.9% as published,
but up +4.2% compared with the “recurring” net profit for
2017 which excluded exceptional items and the impact of the US tax
reform that had no impact on cash flow, and up +8.7% when
also excluding the currency impact.
Net earnings per share, at 4.95 euros, were up
+4.0% compared with the “recurring” net earnings per share
for 2017, in line with the increase in net profit (Group share).
The average number of outstanding shares used for the calculation
of net earnings per share as of December 31, 2018 was
426,674,123.
Change in the number of shares
2017 2018 Average number of
outstanding shares(a)
426,409,142
426,674,123 Number of shares as of December 31, 2017
426,731,852 Options exercised during the year
185,549 Capital increase reserved for employees
1,049,529
Number of shares as of December
31, 2018 427,966,930
(a) Restated in 2017 for the impact of the
free share attribution on October 4, 2017.
Focus - Change in the number of shares
- At the end of October, Air Liquide announced an increase in
share capital reserved for employees. This transaction, which
forms part of the Group’s policy to develop employee share
ownership, covers more than seventy countries. Air Liquide aims to
further associate its employees to the Group’s development
and its performance over the long-term.
DIVIDEND
At the Annual General Meeting on May 7, 2019, the payment of a
dividend of 2.65 euros per share as well as a free share
attribution of 1 for 10 will be proposed to shareholders for
the fiscal year 2018. The total estimated pay-out taking into
account share buybacks and cancellations would amount to
1,165 million euros, representing a pay-out ratio
of 55% of the published net profit. The ex-dividend date
is scheduled for May 20, 2019 and the payment is scheduled for May
22, 2019.
2018 Cash Flow and Balance
Sheet
(in millions of euros)
2017
2018 Cash flow from operating activities before change in
working capital 4,133
4,138 Change in
working capital requirement 188 613 Other items
(67) (35)
Net cash flow from operating
activities 4,254 4,716 Dividends
(1,099) (1,234) Purchases of property, plant and
equipment and intangible assets, net of disposals (a)
(1,850) (2,272) Increase in share capital 70
138 Purchase of treasury shares (158) (64) Impact of
exchange rate changes and net indebtedness of newly consolidated
companies & restatement of net finance
costs
780 (448)
Change in net indebtedness
1,997 836 Net indebtedness as of December 31
(13,371) (12,535)
Debt-to-equity ratio as of
December 31 80% 69%
(a) Including transactions with minority
shareholders
NET CASH FLOW FROM OPERATING ACTIVITIES
Cash flow from operating activities before changes in working
capital requirement totaled 4,138 million euros, stable (+0.1%)
compared with 2017, and stood at 19.7% of Group sales.
Net cash flow from operating activities after changes in
working capital requirement amounted to 4,716 million
euros, up +10.9% compared with 2017, and reached
22.4% of sales. This improvement is the result of measures
taken to reduce working capital requirement.
CHANGES IN WORKING CAPITAL
Working capital requirement (WCR) decreased by -613 million
euros in 2018. This improvement mainly came from Gas &
Services, where trade receivables were down, notably thanks to the
introduction of a non-recourse factoring program at Airgas.
Engineering & Construction WCR was also down, albeit to a
lesser extent, and that of Global
Markets & Technologies was stable. Working capital
requirements excluding tax came to 4.1% of sales, down
compared with the 2017 ratio of 6.4%.
CAPITAL EXPENDITURE
In 2018, gross capital expenditure totaled 2,380
million euros, including transactions with minority
shareholders.
(in millions of euros)
Industrial investments
Financial investments(a) Total capital
expenditures(a) 2014 1,902 273
2,175 2015 2,028 395
2,423 2016
2,259 12,180
14,439 2017 2,183
144
2,327 2018 2,249
131 2,380 (a) Including transactions
with minority shareholders
Proceeds from the sale of fixed assets, for a total of
103 million euros, related to smaller non-strategic
assets. These disposals were part of active business portfolio
management.
Net capital expenditure, including the buyout of minority
interests, amounted to 2,272 million euros.
Industrial capital expenditure
Gross industrial capital expenditure for the Group amounted to
2,249 million euros in 2018, up +3.1% compared with 2017.
They represented 10.7% of sales. For Gas & Services,
this expenditure totaled 2,071 million euros and their
geographical split is described below.
Gas & Services (in millions of euros)
Europe Americas Asia Pacific
Middle East
and Africa
Total 2017 578 690 509
154
1,931 2018 676
861 461 73 2,071
Financial investments
Financial investments amounted to 131 million euros,
including transactions with minority shareholders of one million
euros.
NET INDEBTEDNESS
Net indebtedness at December 31, 2018 reached
12,535 million euros. Despite a negative currency
impact and an increase in the dividend, net indebtedness declined
-836 million euros compared with the end of 2017 due to a very high
level of net cash flow from operating activities in 2018. The
debt-to-equity ratio stood at 68.8% at the end of
December 2018, a strong decline compared to 80% at the end of
2017.
Focus – Debt issue
- In March, Air Liquide successfully completed a first bond
issuance on the Chinese mainland market (“Panda”) for an
aggregate nominal amount of 2.2 billion Renminbi
(approximatively 280 million euros), becoming one of the first
European companies to issue on this market. This transaction bears
coupons of 5.95% and 6.40% for a 3-year and a 5-year
maturity respectively. The 5-year issuance, the longest
maturity ever achieved by a European company on the Panda market,
reflects the long-term dimension of the Group’s activities. The
proceeds of this issue will be used to finance new investments and
to refinance debt related to previous investments in China.
ROCE
The return on capital employed after tax (ROCE) stood at
8.0%, a +30 basis point increase compared with the
recurring ROCE at the end of 20171 (7.7%). Excluding the currency
impact, ROCE improved by +60 basis points. The Group
confirmed the NEOS target of returning to a ROCE of above 10% by
2021-2022.
2 Which excludes from 2017 net profit the non-cash impacts of
exceptional items and the US tax reform.
INVESTMENT CYCLE AND FINANCING
Investments
The momentum in investment projects seen in recent quarters
continued. Investment decisions reached a record level, while the
12-month portfolio of opportunities increased sharply.
INVESTMENT DECISIONS AND INVESTMENT BACKLOG
(in billions of euros)
Industrial investment
decisions
Financial investment
decisions (acquisitions)
Total investment decisions 2014 1.9 0.2
2.1 2015 1.9 0.5
2.4 2016
2.0 12.2
14.2 2017 2.4
0.2
2.6 2018 3.0
0.2 3.1
In 2018, industrial and financial investment decisions
exceeded 3.1 billion euros, a +22% increase
compared with 2.6 billion euros in 2017. This was a record
level excluding major acquisitions. At 1,173 million euros,
4th quarter decisions were particularly high.
Industrial investment decisions amounted to
2,960 million euros. These included nine major
investments in Large Industries, of which five are in key
industrial basins for the Group, in Benelux and along the Gulf
Coast of the United States, three are in developing economies,
in Eastern Europe and in China, and one efficiency investment was
in Japan. Industrial investment decisions in Electronics were up
more than +40% compared with 2017 and reached a record high in
2018. These included nine ultra-pure nitrogen supply investments
for major players in the integrated circuit industry, mainly in
Asia. Moreover, investment decisions in Global Markets &
Technologies, linked to the energy transition, were up markedly in
2018, in particular for hydrogen energy and biomethane.
Financial investment decisions reached approximately
160 million euros for the year. These mainly included
bolt-on acquisitions in Industrial Merchant, in the United States
(seven companies were acquired by Airgas in 2018) and in China, as
well as in Healthcare.
The investment backlog totaled 2.2 billion
euros, an increase of almost 100 million euros compared
with 2017. It is expected to bring a future contribution to annual
sales of approximately 0.9 billion euros per year after
full ramp-up of the units.
Focus – Industrial and financial investment decisions
- Air Liquide announced in April having
signed a new long-term contract with Covestro, a
world-leading supplier of high-tech polymer materials, for the
supply of hydrogen to their new production site in the port
area of Antwerp. Air Liquide will invest 80 million
euros in the construction of a hydrogen production unit fitted
with a new proprietary technology that improves energy
efficiency and the overall environmental footprint of the
production process. By capturing carbon and upgrading the recovered
CO2, this model is part of a circular economy
system. The hydrogen produced will also enable Air Liquide
to supply customers in this industrial basin in Europe.
- Air Liquide and Evraz, a world major
steel producer, have signed a long-term contract for the
supply of oxygen, nitrogen and argon in Novokuznetsk, Russian
Federation. Air Liquide will invest around 130 million
euros for the construction of two state-of-the-art Air
Separation Units of 1,500 ton per day of oxygen each. These
plants will improve energy efficiency and the overall
environmental footprint of the production process.
- In April, Air Liquide announced having
signed a new long-term contract in the United States with
LyondellBasell to supply oxygen to their new
petrochemical plant in Texas, expected to be completed in 2021.
This new propylene oxide/tertiary butyl alcohol plant (PO/TBA) is
expected to be the largest in the world upon construction. The
oxygen will be sourced from Air Liquide’s pipeline system
which spans more than 2,000 miles along the coasts of Texas
and Louisiana, part of the largest pipeline system in the
world.
- With the acquisition of the
respiratory division of Thimar Al Jazirah Company (TAC) in
Saudi Arabia, announced in early January, Air Liquide enters
the Home Healthcare market in Saudi Arabia, where the Group already
supplies medical gases to hospitals. This division is specialized
in the distribution of respiratory equipment and related services.
TAC is the main player in this field, serving over 1,400
patients at home throughout the country. In 2016, the
Home Healthcare division of TAC generated a revenue of
over 5.5 million euros.
- Air Liquide extends its service
offering of Home Healthcare activity via the acquisition at the
beginning of April of the start-up EOVE, a French company
specialized in the design and manufacture of ventilators for
home-based patients suffering from chronic respiratory failure.
EOVE developed an innovative solution: a connected portable
ventilator that takes into account the mobility needs of patients
and facilitates the practice of doctors.
- Airgas announced, in May, the
acquisition of the assets and operations of Weiler Welding
Company, a full-service industrial gas, beverage and gas
welding supply business, based in Moraine, Ohio. This
transaction marks the 500th acquisition in Airgas’
36-year company history.
- In June 2018, Air Liquide announced the
acquirement of a minority stake in the Chinese startup STNE
(Shanghai Sinotran New Energy Automobile Operation CO., LTD) to
accelerate the rollout of hydrogen-powered electric truck fleets
in China. This agreement fits in the Chinese government’s 13th
five-year-plan, which aims notably to support the development and
sale of hydrogen-powered electric vehicles serving clean
mobility.
START-UPS
There were 17 start-ups during 2018 including Fujian
Shenyuan in China in December: six start-ups in the Americas
including four in the United States; four in Europe including the
Kazakhstan takeover, which marks the Group’s entry into this
country; five in Asia including three in China; and two in the
Middle East and Africa in Egypt. Fujian Shenyuan also contributes
for one month of activity, all tests being successfully completed
and all necessary permits being obtained, while discussions are
still going-on regarding the full implementation of certain
contract clauses.
Over 2018, the contribution to sales of unit start-ups
and ramp-ups totaled 270 million euros. The largest
contribution came from the start-up of a major Air Separation Unit
in South Africa at the end of December 2017.
Focus – Start-ups
- In December 2017, Air Liquide has started-up the world’s
largest oxygen production unit for Sasol, an
international integrated energy and chemicals company. Air Liquide
invested around 200 million euros for the construction of
this unit, with a total production capacity of 5,000 tonnes of
oxygen per day in Secunda (around 140 km East of Johannesburg).
Owned and operated by Air Liquide, it is the first time that Sasol
has chosen to outsource its oxygen needs to a specialist of
industrial gas production at this site.
- The start-up of this major unit in South Africa is also a new
source of rare gases. In 2018, several multi-year contracts
worth a total of more than 50 million euros supplying xenon and
krypton have been signed by Air Liquide and the semiconductor
and the satellite industries. The semiconductor industry
uses xenon or krypton in its new processes to produce high-end
flash memories at a lower cost. The all-electric propulsion
satellites also use xenon, enabling significant launching costs
reduction.
- Early September, Air Liquide starts supplying hydrogen in
Kazakhstan through the acquisition of hydrogen and
purification units with a total capacity of up to 30,000 Nm3/h.
This investment of 12 million euros by Air Liquide Munay Tech Gases
(ALMTG) marks the first step in the cooperation between Air
Liquide and KazMunayGaz (KMG). The hydrogen and steam produced
will be delivered to the Pavlodar Oil Chemistry Refinery (POCR) in
the context of a long term Gas Supply Agreement.
INVESTMENT OPPORTUNITIES
The 12-month portfolio of investment opportunities
totaled 2.6 billion euros, as of December 31, 2018, up
500 million euros compared with 2017, despite a
particularly high level of investment decisions. Indeed, new
projects in the portfolio represented amounts that exceeded those
signed by the Group, awarded to the competition or delayed. The
portfolio of investment opportunities had not reached this level
since the end of 2015.
The Americas remained the leading region within the portfolio
with more than one third of opportunities followed by Asia, which
increased its relative share. Opportunities mainly came from the
chemicals and metals industries in Large Industries, which
represented two thirds of the portfolio, and from the integrated
circuit industry in Electronics.
Around half of projects had investments of less than 50 million
euros and five projects had investments of between 100 and 150
million euros. The average size of projects was down
compared with prior years to around 20 million euros, which
contributed to a better distribution of risk and ensures more
regular future growth. The portfolio of opportunities also included
some takeovers that would have a faster contribution to growth.
2018 Financing
“A” CATEGORY RATING CONFIRMED
Air Liquide is rated by two main rating agencies, Standard &
Poor’s and Moody’s. The long-term rating from Standard & Poor’s
for Air Liquide is “A-” and from Moody’s “A3”. These are in line
with the Group’s strategy. Moreover, the short-term ratings
attributed to Air Liquide are “A2” for Standard & Poor’s
and “P2” for Moody’s. Standard & Poor’s, on October 11, 2018,
and Moody’s, on June 18, 2018, confirmed their ratings and have
maintained their stable outlook.
DIVERSIFYING AND SECURING FINANCIAL SOURCES
As of December 31, 2018, financing through capital markets
accounted for 94% of the Group’s total debt, for an amount of bonds
outstanding of 12.4 billion euros, across all programs, and 0.7
billion euros of commercial paper.
As of December 31, 2018, the total amount of credit facilities
had increased significantly, from 3.1 billion euros, to
3.6 billion euros. The amount of bilateral credit facilities
decreased from 1.8 to 1.6 billion euros, as one facility
reached maturity, and was renewed for an amount that was
0.2 million euros lower. The Group also renewed a syndicated
credit facility, taking the amount from 1.3 billion euros to 2
billion euros. This facility will mature in December 2023, and has
two extension options of one year each.
As of December 31, 2018, the amount of total debt maturing in
the next 12 months was 2.5 billion euros, stable compared to the
amount at December 31, 2017.
2018 issues
In March 2018, Air Liquide Finance successfully completed a
first bond issuance on the Chinese mainland market (“Panda”)
for an aggregate nominal amount of 2.2 billion Chinese renminbi
(approximatively 280 million euros). Income from this issue was
used to finance new investments and to refinance debt related to
previous investments in China.
Moreover, as of the end of 2018, outstanding bonds issued under
the EMTN program amounted to 5.9 billion euros (nominal
amount).
Net indebtedness by currency as of December 31
12/31/2017 12/31/2018 Euro
31% 45% US dollar 52% 37% Chinese
renminbi 5% 3% Japanese Yen 3% 3% Other
9% 12%
TOTAL 100%
100%
Investments are generally funded in the currency in which the
cash flows are generated, creating a natural currency hedge. In
2018, US dollar debt decreased markedly, following the financing in
euros of a share of debt in US dollar contracted for Airgas
acquisition. The weighting between the euro and the US dollar has
thus shifted in favor of the euro. Moreover, the debt in
US dollars has benefited from a favorable currency impact.
Debt denominated in Chinese renminbi decreased in volume and share,
as the cash flow generated was used to repay a portion of the debt.
Debt denominated in Japanese yen remains stable.
CENTRALIZATION OF CASH AND FUNDING
Air Liquide Finance continued to pool the cash flow balances of
Group entities. In 2018, Air Liquide included the Australian dollar
in its daily cashpooling, which now contains 14 currencies.
As of December 31, 2018, Air Liquide Finance had granted,
directly or indirectly, the equivalent of 15.4 billion euros in
loans and received 4.4 billion euros in excess cash as deposits.
These transactions were denominated in 28 currencies
(primarily the euro, US dollar, Singapore dollar and Chinese
renminbi). The direct and indirect scope (including subsidiaries
where cashpooling is carried out locally before being centralized
at Air Liquide Finance) included around 390 subsidiaries.
DEBT MATURITY AND SCHEDULE
The average of the Group’s debt maturity stood at 5.9 years at
December 31, 2018. This is a slight decrease compared with December
31, 2017, due to bond issues which reached maturity in 2018 without
renewal, through the use of cash.
The following chart represents the Group’s debt maturity
schedule. The single largest annual maturity represents
approximately 18% of total debt.
OUTLOOK
2018 was a particularly strong year, whether we are looking at
sales growth to 21 billion euros and the rise in
net profit to 2.1 billion euros or the efficiencies and
synergies achieved as well as the high level of industrial
investment decisions.
Sales growth is the highest since 2011. All
activities/businesses are growing, in particular Gas & Services
activities, which account for 96% of the Group’s revenue, with
the last quarter particularly dynamic in Electronics and Industrial
Merchant. From a geographic perspective, growth was also seen
across the board, especially for the Americas and Asia Pacific,
particularly China.
The Airgas synergies are achieved a year ahead of schedule,
confirming that the integration is now successfully completed. In
addition, operating efficiency objectives were surpassed,
contributing to the improved operating margin in
Gas & Services, excluding the energy impact. As of
2019, the annual efficiency objective is raised to 400 million
euros for the Group, which is 100 million euros more than the
objective initially announced in the NEOS program.
Cash flow grew and contributed to a significant reduction in the
debt ratio, to 69%. The Group’s balance sheet is strong and its
ROCE improved, reaching 8.3% excluding the currency impact, in line
with the NEOS objective.
In a context where industrial opportunities remain substantial,
the Group’s investment decisions reached more than 3 billion
euros. Investment backlog amounted to 2.2 billion euros, supporting
future growth.
Accordingly, assuming a comparable environment, Air Liquide is
confident in its ability to deliver net profit growth in 2019,
calculated at constant exchange rate.
APPENDICES
Estimated impact of IFRS16 on the
fiscal year 2019
As of January 1, 2019, the Group financial statements will
include the impacts of the mandatory adoption of the standard
IFRS16 « Leases » issued on January 13, 2016. The
Group will not restate the financial statements of prior
periods. The standard will not affect the recognition of
revenue for the Group as a leaser, as mentioned in the 2017
Reference Document (page 229). The main impact of the application
of IFRS16 for the Group as a lessee consists of the recognition on
the balance sheet of all lease contracts, without distinction
between finance and operating leases. In the course of its
activity, the Group as a lessee enters in contracts mainly for the
following type of assets:
- Land, buildings and offices;
- Transportation equipment, in particular
for Industrial Merchant and Healthcare;
- Other equipment.
Any contract containing a lease leads to the recognition on
the lessee’s balance sheet of a lease liability measured at the
present value of the remaining lease payments and a right-of-use
asset measured at the amount equal to the lease liability,
adjusted by the amount of any prepaid or accrued lease payments as
well as of any provision for onerous leases recognized in the
balance sheet as of December 31, 2018.
Data collection and quantitative analysis of the impacts on the
Group’s financial statements are being finalized but the Group
anticipates the following impacts:
- Consolidated Balance Sheet: The
Group estimates that the first application of IFRS16 would lead to
the recognition on January 1, 2019, of a right-to-use and a lease
liability in the range of 1.3-1.5 billion euros.
- Consolidated Income Statement.
The operating expenses linked to lease contracts will from now on
be accounted for as Depreciation & Amortization and Finance
Costs:
- The Operating Margin before
Depreciation & Amortization1 should increase by
approximately +100 basis points;
- The Depreciation & Amortization
on Revenue ratio should increase by approximately
+100 basis points;
- The Operating Income Recurring (OIR)
should increase slightly, the impact of which on the OIR on
sales ratio should be limited to a maximum of +10 basis
points;
- The Group does not expect any
material impact on the Net Profit.
- Return on Capital Employed
(ROCE): with the recognition of an additional debt, the ROCE
should decrease by -10 to -20 basis points.
3 Operating Income Recurring before Depreciation &
Amortization on Revenue
Currency, energy and significant scope
impacts (Year)
Applied method
In addition to the comparison of published figures, financial
information is given excluding currency, natural gas and
electricity price fluctuation and significant scope impacts.
- Since industrial and medical gases are
rarely exported, the impact of currency fluctuations on activity
levels and results is limited to euro translation impacts with
respect to the financial statements of subsidiaries located outside
the euro zone. The currency effect is calculated based on
the aggregates for the period converted at the exchange rate for
the previous period.
- In addition, the Group passes on
variations in the cost of energy (electricity and natural gas) to
its customers via indexed invoicing integrated into their medium
and long-term contracts. This indexing can lead to significant
variations in sales (mainly in the Large Industries Business Line)
from one period to another depending on fluctuations in prices on
the energy market.
An energy impact is calculated based on the sales of each
of the main subsidiaries in Large Industries. Their consolidation
allows the determination of the energy impact for the Group as a
whole. The foreign exchange rate used is the average annual
exchange rate for the year N-1.
Thus, at the subsidiary level, the following formula provides
the energy impact, calculated for natural gas and electricity
respectively:
Energy impact = Share of sales index to energy year (N-1) x
(Average energy price over the year (N) - Average energy price over
the year (N-1))
This indexation effect of electricity and natural gas does not
impact the operating income recurring.
- The significant scope effect
corresponds to the impact on sales of all acquisitions or disposals
of a significant size for the Group. These changes in scope of
consolidation are determined:
- for acquisitions during the period, by
deducting from the aggregates for the period the contribution of
the acquisition,
- for acquisitions during the previous
period, by deducting from the aggregates for the period the
contribution of the acquisition between January 1 of the
current period and the anniversary date of the acquisition,
- for disposals during the period, by
deducting from the aggregates for the previous period the
contribution of the disposed entity as of the anniversary date of
the disposal,
- for disposals during the previous
period, by deducting from the aggregates for the previous period
the contribution of the disposed entity.
(in millions of euros)
FY 2018 FY 2018/2017
Published Growth Currency impact
Natural gas impact Electricity impact
Significant scope impact FY 2018/2017 Comparable
Growth Revenue
Group
21,011 +3.3% (752) 186 93
(98) +6.1% Impacts in %
-3.6% +0.9% +0.4% -0.5% Gas
& Services 20,107 +2.4% (733) 186
93 (98) +5.2% Impacts in %
-3.7% +0.9% +0.5% -0.5%
Operating Income Recurring
Group 3,449 + 2.5 % (142) -
- (26) + 7.6 % Impacts in %
-4.2% -0.8%
Gas & Services 3,679 + 2.6 %
141 - - (26) + 7.3 % Impacts in %
+3.9%
-0.7%
The operating margin excluding energy impact corresponds to the
operating income recurring on sales excluding energy. For the year
2018 and at Group level it stands at 16.6% = 3,449 / (21,011 – 186
–93).
The sale of the Airgas refrigerants business in October
2017 generated a significant scope impact on 2018 revenue, the
details of which is broken down per quarter below:
(in millions of euros)
Q1 2018 Q2 2018
Q3 2018 Q4 2018 2018
Airgas refrigerants (35) (36) (26) (1)
(98) Impacts in % -0.7% -0.7% -0.5%
-0.0% -0.5%
The 2017 recurring net profit (Group share) reached 2,029
million euros and corresponded to the published net profit (Group
share) of 2017 excluding the non-cash impacts of non-recurring
items and the US tax reform. The currency impact on the 2018 net
profit (Group share) was 92 million euros. The 2018/2017
change compared to 2017 recurring net profit and excluding energy
stood therefore at (2,113 - 92) / 2,029 = +8.7%.
Currency, energy and significant
scope impacts (Quarter)
Consolidated 2018 4th quarter revenue
included the following impacts:
(in millions of euros)
Q4 2018 Q4
2018/2017 Published Growth Currency impact
Natural gas impact Electricity impact
Significant scope impact Q4 2018/2017 Comparable
Growth Revenue
Group
5,578 +9.1% (6) 87 38 (1)
+6.8% Impacts in % -0.1%
+1.7% +0.7% -0.0% Gas &
Services 5,272 +8.1% (1) 87 38
(1) +5.6% Impacts in %
-0.0% +1.8% +0.7% -0.0%
4th Quarter 2018
Revenue
BY GEOGRAPHY
Revenue
(in millions of euros)
Q4 2017 Q4 2018 Published
change Comparable change Americas 1,931
2,091 +8.3% +6.2% Europe 1,748
1,868 +6.9% +2.4% Asia-Pacific 1,039
1,153 +11.0% +8.8% Middle East & Africa
159 160 +0.4% +12.4%
Gas & Services
Revenue 4,877 5,272
+8.1% +5.6% Engineering & Construction
114 145 +27.5% +28.7% Global Markets
& Technologies 121 161 +32.1%
+34.7%
GROUP REVENUE 5,112 5,578
+9.1% +6.8%
BY WORLD BUSINESS LINE
Revenue
(in millions of euros)
Q4 2017 Q4 2018 Published
change Comparable change Large industries
1,356 1,513 +11.6% +3.0% Industrial Merchant
2,239 2,368 +5.8% +5.1% Healthcare
878 910 +3.7% +5.1% Electronics
404 481 +19.1% +17.7%
GAS & SERVICES
REVENUE 4,877 5,272
+8.1% +5.6%
Geographic and Segment
Information
FY 2017 FY 2018 (in millions of euros
and %)
Revenue Operating income
recurring OIR margin Revenue
Operating income recurring OIR margin Americas
8,149.8 1,365.2 16.8% 7,982.1
1,369.4 17.2% Europe 6,775.5 1,309.3
19.3% 7,111.4 1,367.9 19.2% Asia-Pacific
4,081.7 803.8 19.7% 4,358.5
836.9 19.2% Middle East and Africa 634.9 109.0
17.2% 654.9 104.8 16.0%
Gas and
Services 19,641.9 3,587.3
18.3% 20,106.9 3,679.0
18.3% Engineering and Construction 335.1
(23.4) -7.0% 430.2 (3.7) -0.9% Global
Markets & Technologies 372.3 42.2 11.3%
474.0 49.8 10.5% Reconciliation -
(242.3) - - (276.6) -
TOTAL
GROUP 20,349.3 3,363.8
16.5% 21,011.1 3,448.5
16.4%
The 2018 operating income recurring (OIR/sales) stands at
16.4% and at 16.6% excluding energy, which corresponds to a
+10 basis point improvement from 2017.
Consolidated Income
Statement
Following the application of IFRS 5, “Net profit from
discontinued operations” reflected the impact of Air Liquide
Welding’s disposal achieved in July 2017.
(in millions of euros)
2017
2018 Revenue 20,349.3
21,011.1 Other income 221.5 188.4 Purchases
(7,720.8) (8,276.4) Personnel expenses
(4,138.3) (4,145.8) Other expenses (3,570.0)
(3,562.5)
Operating income recurring before depreciation and
amortization 5,141.7 5,214.8
Depreciation and amortization expense (1,777.9)
(1,766.3)
Operating income recurring 3,363.8
3,448.5 Other non-recurring operating income
219.8 4.6 Other non-recurring operating expenses
(563.3) (166.4)
Operating income
3,020.3 3,286.7 Net finance costs
(421.9) (303.4) Other financial income 32.5
13.6 Other financial expenses (100.0) (62.9) Income
taxes (207.3) (730.7) Share of profit of associates
5.2 4.1 NET PROFIT FROM CONTINUING OPERATIONS
2,328.8 2,207.4 NET PROFIT FROM DISCONTINUED OPERATIONS
(37.2) - PROFIT FOR THE PERIOD 2,291.6
2,207.4 - Minority interests 92.0 94.0 - Net profit
(Group share) 2,199.6 2,113.4
Basic earnings per share (in euros)
5.16 4.95 Diluted earnings per share (in
euros) 5.14 4.93
Basic earnings per share from continuing
operations (in euros) 5.25 4.95
Diluted earnings per share from continuing operations (in
euros) 5.22 4.93
Basic earnings per share from discontinued
operations (in euros) (0.09) -
Diluted earnings per share from discontinued operations (in
euros) (0.08) -
Consolidated Balance Sheet
ASSETS (in millions of euros)
2017 2018 Goodwill 12,840.4
13,345.0 Other intangible assets 1,611.1 1,598.7
Property, plant and equipment 18,525.9 19,248.2
Non-current assets 32,977.4
34,191.9 Non-current financial assets 541.6
524.9 Investments in associates 128.2 142.1 Deferred
tax assets 258.4 282.8 Fair value of non-current
derivatives (assets) 130.5 75.9
Other non-current
assets 1,058.7 1,025.7 TOTAL
NON-CURRENT ASSETS 34,036.1
35,217.6 Inventories and work-in-progress 1,333.7
1,460.1 Trade receivables 2,900.0 2,500.4
Other current assets 863.5 892.0 Current tax assets
199.5 140.7 Fair value of current derivatives
(assets) 38.4 44.2 Cash and cash equivalents
1,656.1 1,725.6
TOTAL CURRENT ASSETS
6,991.2 6,763.0 TOTAL ASSETS
41,027.3 41,980.6
LIABILITIES (in millions of euros)
2017
2018 Share capital 2,356.2 2,361.8 Additional
paid-in capital 2,821.3 2,884.5 Retained earnings
9,077.3 10,544.4 Treasury shares (136.5)
(121.0) Net profit (Group share) 2,199.6
2,113.4
Shareholders' equity 16,317.9
17,783.1 Minority interests 400.5
424.3 TOTAL EQUITY 16,718.4
18,207.4 Provisions, pensions and other employee
benefits 2,593.3 2,410.7 Deferred tax liabilities
1,807.7 1,955.9 Non-current borrowings
12,522.4 11,709.6 Other non-current liabilities 238.5
250.0 Fair value of non-current derivatives (liabilities)
2.3 18.4
TOTAL NON-CURRENT LIABILITIES
17,164.2 16,344.6 Provisions, pensions and
other employee benefits 332.7 325.1 Trade payables
2,446.4 2,714.5 Other current liabilities
1,623.9 1,639.8 Current tax payables 194.2
171.2 Current borrowings 2,504.6 2,550.9 Fair value
of current derivatives (liabilities) 42.9 27.1
TOTAL CURRENT LIABILITIES 7,144.7
7,428.6 TOTAL EQUITY AND LIABILITIES
41,027.3 41,980.6
Consolidated Cash Flow
Statement
2017 2018 (in millions of euros)
Operating activities
Net profit (Group share) 2,199.6
2,113.4 Minority interests 92.0
94.0 Adjustments: • Depreciation
and amortization 1,782.9 1,766.3 • Changes in
deferred taxes(a) (350.4) 55.3 • Changes in
provisions 298.9 (89.5) • Share of profit of
associates (0.2) (4.1) • Profit/loss on disposal of
assets 4.5 (9.6) • Net finance costs(b) 105.7
212.4
Cash flows from operating activities before changes
in working capital 4,133.0 4,138.2
Changes in working capital 188.3 612.9 Others
(67.3) (34.7)
Net cash flows from operating
activities 4,254.0 4,716.4
Investing activities Purchase of
property, plant and equipment and intangible assets
(2,182.5) (2,249.2) Acquisition of consolidated companies
and financial assets (140.4) (129.2) Proceeds from
sale of property, plant and equipment and intangible assets
472.9 98.0 Proceeds from sale of financial assets 4.3
5.1 Dividends received from equity affiliates -
5.1
Net cash flows used in investing activities
(1,845.7) (2,270.2) Financing
activities Dividends paid
• L'Air Liquide S.A. (1,031.2)
(1,159.4) • Minority interests (67.6) (75.3) Proceeds
from issues of share capital 70.0 138.1 Purchase of
treasury shares (158.4) (63.6) Net financial
interests paid - (167.1) Increase (decrease) in
borrowings (b) (1,085.4) (1,149.8) Transactions with
minority shareholders (4.4) (1.4)
Net cash flows
from (used in) financing activities (2,277.0)
(2,478.5) Effect of exchange rate changes and change
in scope of consolidation (46.1) 65.2
Net increase
(decrease) in net cash and cash equivalents 85.2
32.9 NET CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE PERIOD 1,430.5
1,515.7 NET CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD 1,515.7 1,548.6
(a) Changes in deferred taxes reported in
the consolidated cash flow statement do not include changes in
deferred taxes relating to disposals of assets and capitalized
finance costs.(b) The net finance costs of 2017 only included the
amount related to the acquisition of Airgas.
Net cash and cash equivalents can be analyzed as
follows:
(in millions of euros)
December 31, 2017
December 31, 2018 Cash and cash equivalents 1,656.1
1,725.6 Bank overdrafts (included in current borrowings)
(140.4) (177.0)
NET CASH AND CASH EQUIVALENTS
1,515.7 1,548.6
Net indebtedness calculation
(in millions of euros)
December 31, 2017
December 31, 2018 Non-current borrowings (12,522.4)
(11,709.6) Current borrowings (2,504.6)
(2,550.9)
TOTAL GROSS INDEBTEDNESS (15,027.0)
(14,260.5) Cash and cash equivalents 1,656.1
1,725.6
NET INDEBTEDNESS AT THE END OF THE PERIOD
(13,370.9) (12,534.9)
Statement of changes in net indebtedness
(in millions of euros)
December 31, 2017
December 31, 2018 Net indebtedness at the beginning of
the period (15,368.1) (13,370.9)
Net cash flows from operating activities 4,254.0
4,716.4 Net cash flows used in investing activities
(1,845.7) (2,270.2) Net cash flows used in financing
activities excluding changes in borrowings (1,191.6)
(1,161.6)
Total net cash flows 1,216.7
1,284.6 Effect of exchange rate changes, opening net
indebtedness of newly acquired companies and others 886.2
(236.2) Restatement of net finance costs (105.7)
(212.4)
Change in net indebtedness
1,997.2 836.0 TOTAL NET INDEBTEDNESS AT THE
END OF THE PERIOD (13,370.9)
(12,534.9)
Return on Capital Employed –
ROCE
Applied method
Return on capital employed after tax is calculated based on the
Group’s consolidated financial statements, by applying the
following ratio for the period in question. For the numerator: net
profit - net finance costs after taxes for the period in question.
For the denominator: the average of (total shareholders' equity +
net indebtedness) at the end of the past three half-years.
ROCE FY 2018 2017 H1 2017
2018 ROCE Calculation (in millions of euros)
(a) (b) (c)
Profit for the period 2,291.6 2,291.6
2,207.4 2,207.4 Net finance costs -421.9
-421.9 -303.4 -303.4 Effective tax rate (a)
8.2% 29.4% 25.5% 25.5% Net financial costs
after tax -160.8 -297.9 -226.0 -226.0
Profit for the period - Net financial costs after tax
2,452.4 2,589.5 2,433.4
2,433.4
Denominator
((a)+(b)+(c))/3
Total equity 16,718.4 16,769.4 18,207.4
17,231.7 Net indebtedness 13,370.9
14,217.3 12,534.9 13,374.4
Average of
(total equity + net indebtedness)
30,606.1 ROCE
8.0% ROCE FY
2017 2016 H1 2017 2017 ROCE
Calculation (in millions of euros)
(a)
(b) (c) Profit for the period
1,926.7 976.5 2,291.6 2,291.6 Net
finance costs -389.1 -222.9 -421.9
-421.9 Effective tax rate (a) 28.2% 27.9%
29.4% 29.4% Net financial costs after tax -279.2
-160.8 -297.9 -297.9
Profit for the
period - Net financial costs after tax 2,205.9
1,137.3 2,589.5
2,589.5 Denominator
((a)+(b)+(c))/3
Total equity 17,125.0 16,049.0 16,718.4
16,630.8 Net indebtedness 15,368.1 15,610.1
13,370.9 14,783.0
Average of (total equity + net
indebtedness)
31,413.8 Published ROCE
8.2% ROCE excluding the non-cash
impacts of the 2017 exceptional items
7.7%
(a) Excluding non-recurring tax
impacts.
Return on capital employed after tax was at 8.0%, up
+30 basis points from recurring ROCE at the end of
20171 (7.7%). Excluding the currency effect, the
improvement was +60 basis points:
- The numerator, net profit - net finance
costs after taxes in 2018, became €2,532.5 million
- The denominator, the average of (total
shareholders' equity + net indebtness) at the end of 2017, the
1st half of 2018 and 2018, became: 30,413.0 million
euros.
- The ROCE excluding the currency effect,
corresponding to the two elements above, therefore became
2,532.5/30,413.0 = 8.3%, which gave an improvement of +60 basis
points compared to the ROCE published at the end of 2017, which was
7.7%.
4 Which excludes from 2017 net profit the non-cash impacts of
exceptional items and the US tax reform.
The slideshow that accompanies this release
is available as 9h00 (Paris time) at
www.airliquide.comThroughout the year, follow Air Liquide
on Twitter: @AirLiquideGroup
UPCOMING EVENTS2019 First Quarter Revenue :April 26,
2019
Annual General Meeting of Shareholders :May 7, 2019
Dividend Ex-coupon Date :May 20, 2019
Dividend Payout Date :May 22, 2019
A world leader in gases, technologies and
services for Industry and Health, Air Liquide is present in 80
countries with approximately 66,000 employees and serves more than
3.6 million customers and patients. Oxygen, nitrogen and hydrogen
are essential small molecules for life, matter and energy. They
embody Air Liquide’s scientific territory and have been at the core
of the company’s activities since its creation in 1902.Air
Liquide’s ambition is to be a leader in its industry, deliver long
term performance and contribute to sustainability. The company’s
customer-centric transformation strategy aims at profitable growth
over the long term. It relies on operational excellence, selective
investments, open innovation and a network organization implemented
by the Group worldwide. Through the commitment and inventiveness of
its people, Air Liquide leverages energy and environment
transition, changes in healthcare and digitization, and delivers
greater value to all its stakeholders.Air Liquide’s revenue
amounted to 21 billion euros in 2018 and its solutions that protect
life and the environment represented more than 40% of sales. Air
Liquide is listed on the Euronext Paris stock exchange (compartment
A) and belongs to the CAC 40, EURO STOXX 50 and FTSE4Good
indexes.
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