Regulatory News:
Air Liquide (Paris:AI):
2020/2019 as 2020/2019
Key Figures (in millions of euros) H1 2020 published comparable (a)
Group Revenue 10,273 -6.2% -3.2%
of which Gas & Services 9,920 -5.8% -2.7%
Operating Income Recurring (OIR) 1,813 0.0% +0.2%
Group OIR Margin 17.6% +100 bps
Variation excluding energy +50 bps
Gas & Services OIR Margin 19.6% +120 bps
Variation excluding energy +60 bps
Net Profit (Group Share) 1,078 +1.8%
Net Profit Recurring (Group Share)
(b) 1,113 -1.1%
Earnings per Share (in euros) 2.29 +1.8%
Cash Flow before changes in working
capital requirements 2,371 +1.0%(c)
Net Debt EUR13.2 bn
Return on Capital Employed after 8.3% +20 bps
tax - ROCE
Recurring ROCE (d) 8.4% +10 bps
(a) Change excluding the currency, energy (natural gas and
electricity) and significant scope impacts, see reconciliation in
appendix. (b) Excluding exceptional and significant transactions
that have no impact on the operating income recurring, see
reconciliation in appendix. (c) Compared with restated 1(st) half
2019 following changes in 2019 annual financial statements:
financial costs before taxes linked to IFRS 16 are reclassified in
other financial expenses whereas they were included in net finance
costs on 30 june 2019. A distinction is now made between other
non-cash items under which the adjustment of this cost is
recognized as well as income and expenses under IAS 19 and IFRS 2
and other cash items. (d) Based on the recurring net profit, see
reconciliation in appendix.
Commenting on the 1(st) half of 2020, Benoît Potier, Chairman
and CEO of Air Liquide, said:
"This exceptional first half of the year once again demonstrates
the Group's resilience in the face of this unprecedented health
crisis. Sales for the half year totaled more than 10 billion euros,
marking a limited decline of -3.2% on a comparable basis. This
reflects the solid performance of Gas & Services, which
represent 96% of revenue, and of Global Markets &
Technologies.
Within Gas & Services, Electronics sales increased;
Healthcare, at the frontline of the pandemic, posted strong growth.
Large Industries showed resilience, whereas Industrial Merchant was
more impacted. Geographically speaking, activity levels reflect the
evolution of the pandemic. China has returned to levels of solid
growth, signs of a recovery are appearing in Europe, whereas the
situation in the Americas remains contrasted.
The Group's operating margin has climbed a further +50 basis
points, excluding the energy impact. This was driven by the ongoing
efficiency programs in the amount of 200 million euros, in line
with the annual objective of more than 400 million euros, and by an
additional cost containment plan launched in response to the
crisis. The margin was also supported by the strength of the price
policy and of the portfolio management.
Net profit improved by +1.8%. The cash flow to sales ratio was
particularly high at 23.1%. The debt-to-equity ratio was down
compared with its level at June 30, 2019.
As 12-month investment opportunities remained dynamic,
industrial investment decisions for the first half were high, at
1.3 billion euros. These decisions, a third of which are
climate-related projects, include innovation investments and
customer asset takeover opportunities, leading to greater
industrial and environmental efficiency.
Air Liquide is a key player of the climate and the energy
transition with oxygen and hydrogen. Thanks to its presence across
all business sectors, the Group has a major role to play in the
current economic and societal transformation.
In a context of limited local lockdowns and progressive recovery
during the second half of 2020, Air Liquide is confident in its
ability to further increase its operating margin and to deliver net
profit close to preceding year level, at constant exchange rates
(1) ."
(1) To be noted, 2020 net profit as published should increase
provided that the schülke divestiture project is completed within
the year. 2020 recurring net profit, meaning excluding the gain
from schülke divestiture and exceptional and significant items that
have no impact on the operating income recurring, should be close
to 2019 recurring net profit at constant exchange rates.
1(st) half 2020 highlights -- Healthcare: Mobilization of Air Liquide
Healthcare teams across the world against Covid-19, in particular to supply
medical oxygen. Tripling of the production of intensive care ventilators in
France. Tripling of the production of CryopAL's medical oxygen tanks. Success
of the consortium of industrial companies led by Air Liquide to manufacture
10,000 ventilators in record time. In Home Healthcare, launch of offer to
support diabetic patients in Germany and the Benelux. -- Industry: Investment
of almost 200 million euros for the construction of production capacity in
Taiwan to enter two of the most cutting-edge semiconductor basins in the
world. Strengthening of the partnership with BASF in Antwerp, with the signing
of three new long-term contracts. Investment of 100 million euros for the
construction and management of an Air Separation Unit for NLMK in Russia.
Investment of 100 million dollars for the construction and management of an
Air Separation Unit for Steel Dynamics, Inc. in the United States. Signing of
25 new long-term Industrial Merchant contracts during the first half of the
year for the onsite supply of gas, following a record year in 2019 with 40
long-term contracts. -- Innovation: Further signature of new contracts for
cryogenic equipment based on Turbo-Brayton technology, bringing the total
number of contracts over two years to approximately 50. This Air Liquide
proprietary technology helps reduce the greenhouse gas emissions of tankers.
Renewal of the partnership with Solidia Technologies, which develops CO(2)
-based solutions that reduce the environmental footprint of precast concrete.
Equity investment by ALIAD, Air Liquide's venture capital investment arm, in
the Cathay Smart Energy Fund dedicated to energy transition start-ups in
China. -- Environment: Double "A" ranking for Air Liquide by the non-profit
organization CDP, for both the reporting of its sustainable water management
measures and for its action to fight against climate change. Publication of a
study of the competitiveness of hydrogen solutions by the Hydrogen Council,
which now counts more than 80 members. Projects supporting hydrogen mobility
for trucks: announcement of the construction of the first high-pressure
hydrogen refueling station in Europe, in Fos-sur-Mer in France, and launch of
an initiative with the Port of Rotterdam to develop infrastructure which will
allow 1,000 hydrogen-powered trucks to travel between the Netherlands, Belgium
and Western Germany by 2025. -- Corporate: Success of Air Liquide's first
fully digital General Meeting, with 10,000 views live or replay. Successful
launch of a double long-term bond issue for a total of 1 billion euros.
Disposal of Air Liquide entities in the Czech Republic and Slovakia to Messer.
Start of exclusive negotiations with EQT for the sale of schülke. Support
by the Air Liquide Foundation of 29 projects in the fight against Covid-19.
Group revenue for the 1(st) half of 2020 totaled 10,273 million
euros. The limited decline in sales over the half year of -3.2% for
the Group and -2.7% for Gas & Services underlined the
resilience of the business model despite the COVID-19 pandemic
which affected all activities and regions. Consolidated sales of
Engineering & Construction (-41.3%) reflected the priority
allocation of resources to internal projects as well as the impact
of the pandemic which led to closure of the workshop in China for
four weeks and to several projects being postponed by a few months.
Global Markets & Technologies reduced the pace of its activity
during the pandemic while pursuing its development with sales
growth of +3.2% in the 1(st) half. The Group's published revenue
was down -6.2% as the slightly positive currency impact +0.1% was
not sufficient to offset the strong negative energy impact of -2.7%
and the significant scope impact of -0.4%.
Gas & Services revenue for the 1(st) half of 2020 reached
9,920 million euros. Sales as published were down -5.8%, negatively
affected by unfavorable energy (-2.8%) and significant scope
(-0.4%) impacts, despite the slightly positive currency impact
(+0.1%).
-- Gas & Services revenue in the Americas totaled 3,975 million euros in the
1st half, marking a decline of -5.1% on a comparable basis. North America
was affected by the pandemic as of the end of March and after showing
initial signs of a recovery in certain markets at the end of May, the
activity stabilized in June. Latin America, which was affected by the
virus later in the 2nd quarter, continues to fight against COVID-19.
Large Industries sales were down slightly over the half year (-1.3%).
With revenue down -8.3%, Industrial Merchant was the most affected by the
public health crisis and lockdown measures despite high price impacts at
+4.0%. Electronics posted strong growth of +5.1%. Healthcare remains
fully committed to the fight against the pandemic, notably through the
supply of medical oxygen and equipment, and posted sales growth of +5.4%,
with strong momentum in Latin America.
-- Revenue in Europe was stable over the half year (+0.2%), reaching 3,440
million euros. The region was particularly impacted by the public health
crisis as of mid-March, notably in Southern Europe, and activities have
begun to gradually recover since the beginning of May. Large Industries
sales were down by -3.5%. Industrial Merchant, which was down -8.2%, was
the most impacted by the public health crisis. Healthcare activities,
which account for more than 40% of Gas & Services sales in Europe, remain
fully mobilized to fight against COVID-19 and saw revenue growth of
+10.8% in the 1st half.
-- Revenue in Asia-Pacific reached 2,236 million euros in the 1st half, down
-2.1% on a comparable basis. China was the first country to suffer the
effects of the COVID-19 pandemic, with a -2.5% decline in sales in the
1st quarter. The recovery in this country was also very fast, with
revenue in China posting growth of +2.1% in the 2nd quarter, with
positive growth in all industrial activities. Part of the region remains
affected by the pandemic and lockdown measures. In the 1st half 2020,
Large Industries (-2.0%) was supported by the resilience of its business
model. Industrial Merchant (-5.8%) was the most impacted. Electronics
(+1.5%) represents a third of the region's sales and posted a very
dynamic growth of +12% excluding Equipment & Installation sales.
-- Revenue in the Middle East and Africa amounted to 269 million euros, down
-7.3% over the 1st half of the year on a comparable basis. Industrial
Merchant sales were very weak during the 2nd quarter following the
introduction of lockdown measures across the region. Large Industries
demonstrated its strong resilience despite a major customer maintenance
turnaround during the 1st quarter, with the region's two major units --
in Saudi Arabia and South Africa -- continuing to operate at a good level
during the 2nd quarter. Healthcare, posted strong growth, notably in
Saudi Arabia.
Healthcare is highly mobilized in the fight against COVID-19 and
posted significant growth of +8.7%. Electronics also enjoyed very
solid growth of +2.0% (+8.9% excluding Equipment &
Installations sales), driven by very dynamic sales in Carrier Gases
and Advanced Materials. Industrial Merchant (-8.1%) was the hardest
hit by the public health crisis, but price impacts remained strong
at +2.9%. Sales in Large Industries were down slightly, by -2.5%
over the half year, due to a weaker demand in the 2(nd) quarter in
particular in Europe and the United States -- two regions which
were strongly affected by the pandemic.
Contribution to consolidated revenues from Engineering &
Construction stood at 104 million euros in the 1(st) half, and
reflected the priority allocation of resources to internal projects
as well as the impact of the pandemic which led to closure of the
workshop in China for four weeks and to several projects being
postponed by a few months.
Global Markets & Technologies revenue reached 249 million
euros, up +3.2%. The biogas activity remained very dynamic in the
United States and Europe. Order intake for Group projects and
third-party customers enjoyed a strong increase and included helium
cryogenic refrigerators, Turbo-Brayton LNG reliquefaction units and
hydrogen stations.
Efficiencies amounted to 200 million euros over the first six
months of the year, in line with the annual objective now fixed at
more than 400 million euros. Moreover, exceptional cost reductions
under the public health crisis response plan were to offset the low
activity level and are not, due to their nature, sustainable over
the long term.
Group operating income recurring (OIR) amounted to 1,813 million
euros in the 1(st) half of 2020, stable as published and up
slightly +0.2% on a comparable basis versus 2019. The operating
margin (OIR to revenue) stood at 17.6%, an improvement of +100
basis points compared with the 1(st) half of 2019, and of +50 basis
points excluding the energy impact. Gas & Services operating
margin as published stood at 19.6%, an improvement of +120 basis
points compared with the 1(st) half of 2019, and of +60 basis
points excluding the energy impact.
Net profit -- Group share amounted to 1,078 million euros in the
1(st) half of 2020, an increase of +1.8% as published. Despite the
pandemic and the resulting significant decline in activity, net
earnings per share were up +1.8% compared with the 1(st) half of
2019 and reached 2.29 euros per share.
Cash flow from operating activities before changes in working
capital amounted to 2,371 million euros in the 1(st) half of 2020,
which corresponds to a high level of 23.1% of sales, a marked
improvement of +170 basis points compared with the 1(st) half of
2019(1) . Net cash flow from operating activities after changes in
working capital requirement amounted to 2,153 million euros, up
markedly by +9.9%. The net debt-to-equity ratio, adjusted for the
seasonal effect of the dividend payment, stood at 64.5%, down
sharply compared with end-June 2019 (70.7%).
Industrial investment decisions totaled 1.3 billion euros,
stable compared with the 1(st) half of 2019, despite the
challenging global health situation. Electronics reached a record
level of investment during the 1(st) half, notably thanks to the
signing of several new units in Asia. The 12-month portfolio of
investment opportunities stood at 2.9 billion euros, stable
compared to the end of 2019 and up compared to the 1(st) quarter of
2020.
The Group confirmed the start-up dates of the main projects for
2020 and maintained its forecast for the additional contribution to
2020 sales of unit start-ups and ramp-ups of between 150 million
and 180 million euros. Based on the health situation as of the
beginning of the 3(rd) quarter, the Group's best estimate regarding
the additional contribution to sales for 2021 is in the range of
300 million euros, reflecting notably the postponement of certain
start-ups and ramp-ups to 2021 due to the COVID-19 crisis.
Recurring return on capital employed after tax (Recurring
ROCE)(2) stood at 8.4%, an increase of +10 basis points compared
with the 1(st) half of 2019.
In the 1(st) half of 2020, the Group maintained its dividend
payment and increased industrial capital expenditure while
refinancing in advance the debt maturing in 2020. These initiatives
underline the robustness of the balance sheet and net cash flow
from the Group's operating activities in a crisis context and its
ability to ensure its future growth.
_____________________________
(1) Compared with restated 1(st) half 2019 following changes in
2019 annual financial statements: financial costs before taxes
linked to IFRS 16 are reclassified in other financial expenses
whereas they were included in net finance costs on 30 june 2019. A
distinction is now made between other non-cash items under which
the adjustment of this cost is recognized as well as income and
expenses under IAS 19 and IFRS 2 and other cash items.
(2) Based on the recurring net profit, see reconciliation in
appendix.
Table of Contents of the activity report
H1 2020 PERFORMANCE 6
Key Figures 6
Income Statement 7
Change in Net debt 16
INVESTMENT CYCLE 17
RISK FACTORS 19
2020 OUTLOOK 21
APPICES 22
Performance indicators 22
Calculation of performance indicators (Semester) 23
Calculation of performance indicators (Quarter) 26
2(nd) quarter 2020 revenue 26
Geographic and segment information 27
Consolidated income statement 27
Consolidated balance sheet 28
Consolidated cash flow statement 29
H1 2020 PERFORMANCE
Unless otherwise stated, all variations in revenue outlined
below are on a comparable basis, excluding currency, energy
(natural gas and electricity) and significant scope impacts.
Key Figures
2020/2019 2020/2019
published comparable
(in millions of euros) H1 2019 H1 2020 change change (a)
Total Revenue 10,952 10,273 -6.2% -3.2%
Of which Gas & Services 10,536 9,920 -5.8% -2.7%
Operating Income Recurring 1,814 1,813 0.0% +0.2%
Operating Income Recurring
(as % of Revenue) 16.6% 17.6% +100 bps
Variation excluding energy +50 bps
Other Non-Recurring
Operating Income and
Expenses (86) (92)
Net Profit (Group Share) 1,059 1,078 +1.8%
Net Profit Recurring (Group
Share) (b) 1,126 1,113 -1.1%
Earnings per Share (in
euros) 2.25 2.29 +1.8%
Cash Flow before changes in
working capital
requirements 2,348(c) 2,371 +1.0%(c)
Net Capital Expenditure (d) 1,537 1,309
Net Debt EUR13.7 bn EUR13.2 bn
Net Debt to Equity ratio
(e) 70.7% 64.5%
Return on Capital Employed
after tax - ROCE 8.1% 8.3% +20 bps
Recurring ROCE (f) 8.3% 8.4% +10 bps
(a) Change excluding the currency, energy (natural gas and
electricity) and significant scope impacts, see reconciliation in
appendix.
(b) Excluding exceptional and significant transactions that have
no impact on the operating income recurring, see reconciliation in
appendix.
(c) Compared with restated 1(st) half 2019 following changes in
2019 annual financial statements: financial costs before taxes
linked to IFRS 16 are reclassified in other financial expenses
whereas they were included in net finance costs on 30 june 2019. A
distinction is now made between other non-cash items under which
the adjustment of this cost is recognized as well as income and
expenses under IAS 19 and IFRS 2 and other cash items.
(d) Including transactions with minority shareholders.
(e) Adjusted to spread the dividend payment in 1(st) half out
over the full year.
(f) Based on the recurring net profit, see reconciliation in
appendix.
Income Statement
REVENUE
2020/2019 2020/2019
Revenue published comparable
(in millions of euros) H1 2019 H1 2020 change change
Gas & Services 10,536 9,920 -5.8% -2.7%
Engineering & Construction 176 104 -41.0% -41.3%
Global Markets & Technologies 240 249 +3.5% +3.2%
TOTAL REVENUE 10,952 10,273 -6.2% -3.2%
Revenue by quarter
(in millions of euros) Q1 2020 Q2 2020
Gas & Services 5,191 4,729
Engineering & Construction 52 52
Global Markets & Technologies 127 122
TOTAL REVENUE 5,370 4,903
2020/2019 Group published change -1.3% -11.0%
2020/2019 Group comparable change +0.6% -6.9%
2020/2019 Gas & Services comparable change +1.1% -6.5%
Group
Group revenue for the 1(st) half of 2020 totaled 10,273 million
euros. The limited decline in sales over the half year of -3.2% for
the Group and -2.7% for Gas & Services underlined the
resilience of the business model despite the COVID-19 pandemic
which affected all activities and regions. In China, the first
country to be impacted by the virus, sales were up during the 2(nd)
quarter. Business in Europe has been gradually recovering since May
whereas it stabilized in the United States in June after showing
the first signs of a recovery on specific markets in May.
Consolidated sales of Engineering & Construction (-41.3%)
reflected the priority allocation of resources to internal projects
as well as the impact of the pandemic which led to closure of the
manufacturing workshop in China for four weeks and to several
projects being postponed by a few months. Global Markets &
Technologies reduced the pace of its activity during the pandemic
while pursuing its development with sales growth of +3.2% in the
1(st) half. The Group's published revenue was down -6.2% as the
slightly positive currency impact +0.1% was not sufficient to
offset the strong negative energy impact of -2.7% and the
significant scope impact of -0.4%.
Gas & Services
Gas & Services revenue for the 1(st) half of 2020 reached
9,920 million euros. Healthcare is highly mobilized in the fight
against COVID-19 and posted significant growth of +8.7%.
Electronics also enjoyed very solid growth of +2.0% and +8.9%
excluding Equipment & Installations sales, driven by very
dynamic sales in Carrier Gases and Advanced Materials. Industrial
Merchant (-8.1%) was the hardest hit by the public health crisis,
but price impacts remained strong at +2.9%. Sales in Large
Industries were down slightly, by -2.5% over the half year, due to
a weaker demand in the 2(nd) quarter in particular in Europe and
the United States -- two regions which were strongly affected by
the pandemic. Sales as published were down -5.8%, negatively
affected by unfavorable energy (-2.8%) and significant scope
(-0.4%) impacts, despite the slightly positive currency impact
(+0.1%).
2020/2019 2020/2019
Revenue by geography and business published comparable
line (in millions of euros) H1 2019 H1 2020 change change
Americas 4,217 3,975 -5.7% -5.1%
Europe 3,611 3,440 -4.7% +0.2%
Asia-Pacific 2,405 2,236 -7.0% -2.1%
Middle East & Africa 303 269 -11.3% -7.3%
GAS & SERVICES REVENUE 10,536 9,920 -5.8% -2.7%
Large Industries 2,904 2,430 -16.3% -2.5%
Industrial Merchant 4,827 4,509 -6.6% -8.1%
Healthcare 1,821 1,959 +7.6% +8.7%
Electronics 984 1,022 +3.9% +2.0%
Americas
Gas & Services revenue in the Americas totaled 3,975 million
euros in the 1(st) half, marking a decline of -5.1%. North America
was affected by the pandemic as of the end of March and after
showing initial signs of a recovery in certain markets at the end
of May, the activity stabilized in June. Latin America, which was
affected by the virus later in the 2(nd) quarter, continues to
fight against COVID-19. Large Industries sales were down slightly
over the half year (-1.3%). With revenue down -8.3%, Industrial
Merchant was the most affected by the public health crisis and
lockdown measures. Electronics posted strong growth of +5.1%.
Healthcare remains fully committed to the fight against the
pandemic, notably through the supply of medical oxygen, and posted
sales growth of +5.4%.
Americas Gas & Services H1 2020 Revenue
-- Large Industries revenue was down slightly, by -1.3%, in the 1st half,
mainly due to weak air gases volumes in the United States, in particular
for Chemicals in the 2nd quarter as a result of lockdown measures.
Following a dynamic 1st quarter and a moderate decline in the 2nd quarter,
hydrogen volumes for Refining stabilized pending a recovery in fuel
demand. Growth in Latin America was driven mainly by the start-up and
ramp-up of new units.
-- Industrial Merchant sales, which were down -8.3% over the 1st half, were
strongly impacted by the public health crisis. The slowdown in industrial
sectors such as Construction and Metal Fabrication therefore triggered a
major decline in sales in the United States, notably for hardgoods and,
to a lesser extent, cylinders and liquid gas. The marked fall in volumes
was partially offset by fixed revenues from the provision of gas
cylinders and liquid storage tanks, and high price impacts (+4.0%) which
benefited from the price increases campaigns at the beginning of the
year. Consumption-related markets such as Food and Pharmaceuticals and
the Research sector were more resilient. In Canada, liquid nitrogen
volumes were also affected by the slowdown in oil exploration activities.
In Latin America, volumes were weaker during the 2nd quarter, as the
region was hit later by the public health crisis.
-- Healthcare revenue was up +5.4% in the 1st half, driven by medical gases
sales growth across the region. In the 2nd quarter, sales of medical
oxygen to fight COVID-19 in the United States did not fully offset the
decline in proximity care activity due to the interruption of
non-emergency services, but the situation improved towards the end of the
quarter. In Latin America, the Healthcare teams were highly mobilized in
the fight against COVID-19. Medical oxygen sales as well as ventilators
and installations in hospitals were up markedly, in particular in
Argentina and Brazil, as well as Home Healthcare sales.
-- Electronics revenue was up +5.1%, with Advanced Materials and Equipment &
Installation sales up sharply across the half year.
Americas -- Air Liquide has signed a long-term agreement with Steel
Dynamics, Inc. (SDI), one of the largest steel producers and metals recyclers
in the United States, to supply gaseous oxygen, nitrogen, and argon to SDI's
new Electric Arc Furnace (EAF) steel mill in Sinton, Texas. To support the new
agreement, Air Liquide plans to invest over 100 million U.S. dollars to
install an Air Separation Unit (ASU) on its Gulf Coast pipeline network in
Ingleside, Texas, and extend its pipeline network to SDI's site.
Europe
Revenue in Europe was stable over the half year (+0.2%),
reaching 3,440 million euros. The region was particularly impacted
by the public health crisis as of mid-March, notably in Southern
Europe, and activities have begun to gradually recover since the
beginning of May. Large Industries sales were down by -3.5%.
Industrial Merchant, which was down -8.2%, was the most impacted by
the public health crisis. Healthcare activities, which account for
more than 40% of Gas & Services sales in Europe, remain fully
mobilized to fight against COVID-19 and saw revenue growth of
+10.8% in the 1(st) half.
Europe Gas & Services H1 2020 Revenue
-- Large Industries sales were down -3.5% during the 1st half, due to a
slowdown in activity during the 2nd quarter related to the public health
crisis. Air gases volumes were weak in Steel and, to a lesser extent, in
Chemicals, due mainly to a significant fall in Construction and
Automotive activities. Following a dynamic 1st quarter, demand for
hydrogen from Refiners in the Benelux was weaker during the 2nd quarter.
The eastern part of Europe was more resilient, with air gases sales up
during the 1st half in Russia and Turkey. Overall activity in the region
has been gradually recovering since May.
-- Industrial Merchant sales were down -8.2% during the 1st half. The entire
region was affected by the public health crisis, with weak cylinder and
liquid gas sales, in particular in Western and Southern Europe. The Food
and Pharmaceuticals sectors were more resilient than those linked to
industrial production. The first signs of a gradual recovery were visible
as of May, in particular with a rebound in cylinder gas sales in Benelux
and Southern Europe. Price impacts remained high at +1.6%.
-- Healthcare has been deeply involved in the fight against COVID-19 and was
up +10.8% over the half year. The business line notably benefited from
the marked increase in sales of medical hydroalcoholic gel produced by
its subsidiary schülke as well as the sale of, at cost price,
ventilators by Air Liquide Medical Systems as part of the emergency
measures implemented to manage the pandemic. Following a major increase
in medical oxygen volumes in March and April, activity levels are
gradually returning to normal. Home Healthcare remains strong, with a
marked increase in the number of patients treated in Scandinavia and
France in the 1st quarter, and the development of the activity in
Germany. At the peak of the pandemic in Europe, Home Healthcare
participated in the care of COVID-19 patients, but lockdown measures
limited the number of new homecare installations, notably for the
treatment of diabetes and sleep apnea.
Europe -- Air Liquide and BASF, a world-leading chemical company, have
signed in early February three new long-term contracts in the Antwerp basin
(Belgium). Air Liquide has been supplying BASF with gas for over 50 years in
this major industrial basin, and is currently operating five production plants
on site. These new contracts are coherent with a low carbon footprint
approach, in line with the Group's Climate objectives.
Asia-Pacific
Revenue in Asia-Pacific reached 2,236 million euros in the 1(st)
half, down -2.1%. China was the first country to suffer the effects
of the COVID-19 pandemic, with a -2.5% decline in sales in the
1(st) quarter. The recovery in this country was also very fast,
with revenue in China posting growth of +2.1% in the 2(nd) quarter,
with positive growth in all industrial activities. Part of the
region remains affected by the pandemic and lockdown measures.
Large Industries (-2.0%) benefited from the resilience of its
business model. Industrial Merchant (-5.8%) was the most impacted.
Electronics (+1.5%) represents a third of the region's sales and
posted a very dynamic growth in excess of +10% excluding Equipment
& Installation sales.
Asia-Pacific Gas & Services H1 2020 Revenue
-- Large Industries sales were down -2.0% over the half year. Volumes were
weak in Japan, in particular in Steel, and in South-Eastern Asia, in
particular in Singapore in Refining. In China, recovery is underway
across all sectors, driven by domestic demand.
-- Industrial Merchant revenue was down -5.8% during the 1st half. The
public health crisis triggered a decline in activity in China during the
1st quarter. The country's rapid recovery during the 2nd quarter was not
enough to offset weaker 2nd quarter sales in the rest of the region,
which was impacted in turn by the pandemic. Liquid and cylinder gas
volumes therefore declined markedly in the 2nd quarter in Japan,
Australia and Singapore; helium sales slowed across the region. At the
same time, whereas almost all sectors saw a decline during the 2nd
quarter, Technology & Research, and fiber optics in particular, enjoyed
very solid growth. Finally, price impacts remained positive at +0.6%.
-- Electronics sales, which were up +1.5%, posted marked growth of +12.0%
excluding Equipment & Installation sales, which had been particularly
high during the 1st half of 2019. This growth was driven by Advanced
Materials and Carrier Gases with, in particular, the ramp-up of an
Advanced Materials supply contract in South Korea and of Carrier Gases
production units in China, Japan, Taiwan and Singapore.
Middle East and Africa
Revenue in the Middle East and Africa amounted to 269 million
euros, down -7.3% over the 1(st) half of the year. Industrial
Merchant sales were very weak during the 2(nd) quarter following
the introduction of lockdown measures across the region. Large
Industries demonstrated its strong resilience despite a major
customer maintenance turnaround during the 1(st) quarter, with the
two major units in the region -- in Saudi Arabia and South Africa
-- continuing to operate at a good level during the 2(nd) quarter.
Healthcare, which played a major role in the fight against
COVID-19, posted strong growth, notably in Saudi Arabia.
Engineering & Construction
Engineering & Construction consolidated revenue stood at 104
million euros in the 1(st) half, impacted by the COVID-19 pandemic
that led in particular to the four-weeks closure of the Chinese
manufacturing workshop and to several projects being postponed by a
few months. Sales to third-party customers were down -41% compared
with the 1(st) half of 2019, but total sales declined by a more
modest -20%, with resources mainly allocated to internal projects
for Large Industries and Electronics.
Order intake, which was much higher in the 2(nd) quarter than
the 1(st) quarter, reached 311 million euros over the half year,
with almost 60% coming from Asia. This mainly related to Air
Separation Units and ultra-pure nitrogen production units for the
Group and third-party customers.
Global Markets & Technologies
Global Markets & Technologies revenue reached 249 million
euros in the 1(st) half, up +3.2%. Equipment sales were up markedly
during the 1(st) quarter and offset the weaker activity seen during
the 2(nd) quarter, which was impacted by reduced production
capacities due to the public health crisis. The biogas activity
remained strong, with the start-up and ramp-up of production units
in the United States and higher biomethane sales to transportation
in Europe.
Order intake for Group projects and third-party customers
totaled 382 million euros, enjoying a strong increase of +46.3%
over the 1(st) half 2020. This included major contracts for helium
cryogenic refrigerators, Turbo-Brayton LNG reliquefaction units and
hydrogen stations for Japan and South Korea.
Global Markets & Technologies -- Early-July, Air Liquide announced the
installation of the first high-pressure hydrogen refueling station in Europe,
in the south of France, with capacity to serve the first fleet of long-haul
hydrogen trucks. This investment reflects the Group's strategy to accelerate
the deployment of hydrogen energy through large-scale projects, particularly
in the heavy vehicle segment. The project will contribute to reduce CO(2)
emissions by more than 1,500 metric tons of CO(2) per year. The station will
be commissioned early 2022. -- Air Liquide and the Port of Rotterdam Authority
announced in early-July the launch of a jointly created initiative, which aims
at enabling 1,000 hydrogen-powered zero-emission trucks on the roads
connecting the Netherlands, Belgium, and West Germany by 2025. Several
partners representing the whole supply chain, from truck manufacturers such as
VDL Groep, Iveco/Nikola to transport companies Vos Logistics, Jongeneel
Transport and HN Post, as well as leading fuel cell suppliers have already
agreed to join. This is one of the largest projects in Europe for the
development of hydrogen trucks and related infrastructure and will contribute
to improve air quality by reducing by an estimated amount of more than 100,000
tonnes CO(2) emissions per year, which is equivalent to 110 million kilometers
driven.
OPERATING INCOME RECURRING
Operating income recurring before depreciation and amortization
totaled 2,897 million euros, up +0.7% as published compared with
the 1(st) half of 2019. Personnel costs were stable, and down -1.1%
excluding currency and scope impacts. Purchases were down -14.2%,
notably with the reduction in energy purchases representing almost
50% of this decrease. Other operating expenses were down -7.2% and
included a steep reduction in subcontracting costs and travel
expenses. Operating costs relating to the COVID-19 pandemic and in
particular idle-capacity costs, are included in operating expenses.
Depreciation and amortization reached 1,084 million euros, marking
a slight increase of +1.9%, with the 2019 sale of the Fujian
Shenyuan units mostly offsetting the start-up of new units during
the 1(st) half of 2020.
Ongoing efficiency programs and the exceptional cost containment
plan launched by the Group in response to the COVID-19 crisis
contributed significantly to improving performance despite a
decline in activity. Group operating income recurring (OIR)
amounted to 1,813 million euros in the 1(st) half of 2020, stable
as published and up slightly +0.2% on a comparable basis versus
2019. The operating margin (OIR to revenue) stood at 17.6%, an
improvement of +100 basis points compared with the 1(st) half of
2019, or +50 basis points excluding the energy impact.
Efficiencies amounted to 200 million euros over the first six
months of the year, a slight increase of +1% compared with the
1(st) half of 2019 despite a decline in volumes, and in line with
the annual objective now fixed at more than 400 million euros.
These efficiencies represent cost savings of 2.5%. Industrial
efficiencies accounted for close to 50% of total efficiencies and
were the result of increased investment in efficiency projects,
notably the optimization of the supply chain in Industrial
Merchant, and energy efficiency in Large Industries. The
implementation of digital tools aimed at the Group's transformation
continued, with the acceleration of the roll-out of remote
operation centers for Large Industries production units (Smart
Innovative Operations, SIO), new optimization tools for delivery
routes in Industrial Merchant and the introduction of a remote
patient monitoring platform in Healthcare.
Moreover, exceptional cost reductions under the public health
crisis response plan were to offset the low activity level and are
not, due to their nature, sustainable over the long term.
Gas & Services
Gas & Services H1 2020 Operating Income Recurring
Gas & Services operating income recurring totaled 1,947
million euros, up +0.4% as published compared with the 1(st) half
of 2019, and up +0.7% on a comparable basis, despite the decline in
activity due to the public health crisis. The operating margin as
published stood at 19.6%, an improvement of +120 basis points
compared with the 1(st) half of 2019, or +60 basis points excluding
the energy impact.
Prices were up +1.5% over the first six months of the year,
driven mainly by Industrial Merchant where prices were up markedly
+2.9%, notably thanks to pricing campaigns launched at the
beginning of the year, in particular in the United States, coupled
with the increase in helium prices. Prices were almost flat in
Electronics and Healthcare.
H1 2020,
excluding
Gas & Services Operating margin (a) H1 2019 H1 2020 energy impact
Americas 17.3% 18.7% 18.4%
Europe 19.0% 19.8% 18.8%
Asia-Pacific 19.7% 21.7% 21.2%
Middle East & Africa 15.7% 14.3% 13.9%
TOTAL 18.4% 19.6% 19.0%
(a) Operating income recurring / revenue as published
Operating income recurring in the Americas reached 744 million
euros over the 1(st) half of 2020, an increase of +1.9%. Excluding
the energy impact, the operating margin stood at 18.4%,
representing a strong +110 basis point increase compared with the
1(st) half of 2019. The exceptional cost containment plan launched
in response to the public health crisis was implemented rapidly and
efficiently across the region, in particular at Airgas which
generated the Group's strongest contribution. In addition to this,
the efficiency plan was continued, and dynamic pricing management
as well as favorable mix effects relating mainly to the significant
decrease in hardgoods sales were observed. The combination of these
effects were reflected in the marked increase in Industrial
Merchant margins. While the efficiencies generate a recurrent
decrease in costs, the exceptional measures introduced in response
to the public health crisis are not sustainable over the long
term.
Operating income recurring in Europe reached 680 million euros,
a slight decrease of -1.1% compared with the 1(st) half of 2019.
Excluding the energy impact, the operating margin was 18.8%, down
just -20 basis points. The growth in Healthcare did not fully
offset the slow-down in other activities, in particular in Large
Industries which generates the highest margins. Moreover, the load
rates of Large Industries production units, which were high in
2019, were impacted by erratic and slower customer demand which
generated additional operational costs, without Take-or-Pay levels
necessarily being reached. Moreover, European regulations limit the
possibilities of introducing temporary measures aimed at adapting
fixed costs to the weak activity level.
Operating income recurring in Asia-Pacific stood at 484 million
euros, an increase of +2.3%. The operating margin excluding the
energy impact reached 21.2%, a marked increase of +150 basis
points. Exceptional cost containment measures were rapidly
implemented in the region, in particular in China and Singapore.
Moreover, the strong growth momentum of Carrier Gases and of
Advanced Materials in Electronics combined with sales of Equipment
& Installations lower than the high level of 2019, had a strong
positive effect on margins. Finally, the 2019 sale of the Fujian
Shenyuan units also contributed, to a lesser extent, to this
improvement.
Operating income recurring for the Middle East and Africa region
amounted to 39 million euros, representing a decrease of -18.9%
compared with the 1(st) half of 2019. Excluding the energy impact,
the operating margin was 13.9%, down -180 basis points due in
particular to a customer maintenance turnaround in the 1(st)
quarter at a major Large Industries hydrogen production unit in
Saudi Arabia. During the 2(nd) quarter, the major decline in
activity, mainly in Industrial Merchant across the entire region,
also had an unfavorable impact on operating income.
Operating performance - divestitures -- Air Liquide announced in early March
it has entered into exclusive negotiations with French private equity firm
Hivest Capital Partners for the divestment of its subsidiary CRYOPDP that has
more than 250 employees in 12 countries. CRYOPDP provides global innovative
temperature-controlled logistics solutions to the Clinical Research and Cell &
Gene Therapy Communities. This decision illustrates Air Liquide's strategy to
regularly review its asset portfolio in order to focus on key businesses and
geographies so as to maximize its performances. -- Air Liquide announced early
April that it has entered into exclusive negotiations with EQT, a global
investment organization, for the potential sale of its subsidiary Schülke
& Mayr GmbH, a global leader in infection prevention and hygiene. This
potential sale illustrates Air Liquide's strategy to review its business
portfolio regularly and to focus on its core gases and healthcare businesses,
thereby enhancing Air Liquide's performance. -- Air Liquide closed the
divestiture of Czech Republic and Slovakia entities to Messer early-May. This
transaction illustrates Air Liquide's strategy to review regularly its asset
portfolio and focus its expansion in key regions in order to increase its
geographic density and therefore enhance performance.
Engineering & Construction
Engineering & Construction operating income recurring stood
at -21 million euros for the 1(st) half of 2020, and reflected in
particular the four-weeks closure of the Chinese manufacturing
workshop and the postponement of several projects by a few months
due to the COVID-19 pandemic.
Global Markets & Technologies
Operating income recurring for Global Markets & Technologies
stood at 24 million euros with an operating margin at 9.8% for the
1(st) half of 2020, stable compared with 2019.
Research & Development and Corporate costs
Research & Development expenses and Corporate Costs totaled
137 million euros, down -8.1% compared with the 1(st) half of 2019
due to the rapid implementation of the exceptional cost containment
plan launched in response to the COVID-19 pandemic.
NET PROFIT
Other operating income and expenses showed a net balance of -92
million euros. Nearly half of this related to exceptional expenses
associated with the management of the COVID-19 public health
crisis, and around a third to costs relating to realignment plans
in various countries and activities.
The financial result was -216 million euros compared with -239
million euros in the 1(st) half of 2019, mainly due to a cost of
net debt of -170 million euros, which was down -7.9% compared with
the 1(st) half of 2019(3) . The average cost of net indebtedness
was 2.9%, slightly lower than in 2019, due mainly to the decrease
in emerging market-denominated debt which carries a higher
cost.
Income tax expense stood at 381 million euros, a decrease of
some -5 million euros compared with the 1(st) half of 2019. The
effective tax rate reached 25.3%, almost flat compared with the
1(st) half of 2019 excluding the impact of the non-deductibility of
the provision relating to the disposal of the Fujian Shenyuan
units.
The share of profit of associates amounted to 0.5 million euros.
The share of minority interests in net profit reached 46 million
euros, a slight decline of -3.8% due to the slowdown of business at
subsidiaries with minority shareholders, in particular in the
Middle East.
Net profit -- Group share amounted to 1,078 million euros in the
1(st) half of 2020, an increase of +1.8% as published. Recurring
net profit -- Group share(4) reached 1,113 million euros, a slight
decrease of -1.1%. This excluded the impact of the provision
relating to the 2019 disposal of the Fujian Shenyuan units and of
exceptional expenses relating to the management of the COVID-19
public health crisis during the 1(st) half of 2020.
Despite the pandemic and the resulting significant decline in
activity, net earnings per share were up +1.8% compared with the
1(st) half of 2019. These stood at 2.29 euros per share, in line
with the improvement in net profit -- Group share. The average
number of outstanding shares used for the calculation of net
earnings per share as of June 30, 2020 was 471,411,633.
Change in the number of shares
H1 2019 (a) H1 2020
Average number of outstanding shares 471,254,166 471,411,633
(a) Adjusted following the free shares attribution in October
2019
________________________
(3) Compared with restated 1(st) half 2019 following changes in
2019 annual financial statements: financial costs before taxes
linked to IFRS 16 are reclassified in other financial expenses
whereas they were included in net finance costs on 30 june
2019.
(4) See reconciliation in appendix.
Change in Net debt
Cash flow from operating activities before changes in working
capital amounted to 2,371 million euros in the 1(st) half of 2020,
an increase of +1.0% despite a slowdown in activity, which
demonstrates the resilience of the Group's business model. This
corresponds to a high level of 23.1% of sales, a marked improvement
of +170 basis points compared with the 1(st) half of 2019(5) .
Working capital requirement (WCR) was up 157 million euros
compared with December 31, 2019, in particular due to the increase
in inventories for the management of the public health crisis in
Healthcare in Europe. The Group is keeping a close eye on the
collection of trade receivables and the DSO (Days of Sales
Outstanding) was relatively stable at the end of the 2(nd) quarter.
The WCR excluding taxes to sales ratio improved to 5.0% from 5.8%
at June 30, 2019. Net cash flow from operating activities after
changes in working capital requirement amounted to 2,153 million
euros, up markedly by +9.9% compared with the 1(st) half of
2019.
Gross capital expenditure totaled 1,384 million euros. Gross
industrial capital expenditure amounted to 1,320 million, an
increase of +9.9% compared with the 1(st) half of 2019. This
represented 12.8% of sales, reflecting strong project development
despite the public health crisis. Financial investments totaled 64
million euros compared with an exceptionally high 1(st) half of
2019 at 446 million euros due to the acquisition of Tech Air in the
United States. Proceeds from the sale of fixed assets stood at 82
million euros and included in particular the disposal of activities
in Slovakia and the Czech Republic, highlighting the Group's
commitment to maintain its active business portfolio management.
Net capital expenditure(6) totaled 1,309 million euros.
Net debt at June 30, 2020 reached 13,176 million euros, a
decrease of 523 million euros compared with June 30, 2019 and an
increase of just 803 million euros compared with December 31, 2019
following the payment of more than 1.3 billion euros in dividends
in May. The net debt-to-equity ratio, adjusted for the seasonal
effect of the dividend payment, stood at 64.5%, down sharply
compared with end-June 2019 (70.7%).
In the 1(st) half of 2020, the Group maintained its dividend
payment and increased industrial capital expenditure while
refinancing in advance the debt maturing in 2020. These initiatives
underline the robustness of the balance sheet and net cash flow
from the Group's operating activities in a crisis context and its
ability to ensure its future growth.
The return on capital employed after tax (ROCE) was 8.3% for the
1(st) half of 2020. Recurring ROCE(7) stood at 8.4%, an increase of
+10 basis points compared with the 1(st) half of 2019.
Financing -- Late-March, Air Liquide successfully launches a EUR1 billion
long term bond issuance. Proceeds from this issuance allowed the Group to
refinance its June 2020 bond maturities in advance and secure financing to
support long term profitable growth. This issue has been rated << A- >> by
Standard & Poor's and << A3 >> by Moody's.
(________________________________)
(5) Compared with restated 1(st) half 2019 following changes in
2019 annual financial statements: financial costs before taxes
linked to IFRS 16 are reclassified in other financial expenses
whereas they were included in net finance costs on 30 june 2019. A
distinction is now made between other non-cash items under which
the adjustment of this cost is recognized as well as income and
expenses under IAS 19 and IFRS 2 and other cash items.
(6) Including transactions with minority shareholders.
(7) See definition and reconciliation in the Appendix.
INVESTMENT CYCLE
INVESTMENT DECISIONS AND INVESTMENT BACKLOG
Industrial and financial investment decisions totaled 1,331
million euros in the 1(st) half of 2020. This was lower than the
1.8 billion euros in the 1(st) half of 2019, which included the
acquisition of Tech Air in the United States for more than 300
million euros.
Industrial investment decisions totaled 1.3 billion euros,
stable compared with the 1(st) half of 2019, despite the
challenging global health situation. Electronics reached a record
level of investment during the 1(st) half, notably thanks to the
signing of new units for Carrier Gases in Taiwan and for Advanced
Materials in Singapore. Large Industries development was also
dynamic, with the signing of a major project in China and a new air
separation unit in addition to a site takeover in Russia. More than
30% of industrial decisions contribute to the Climate objectives
and close to 13% support margin improvement (efficiencies).
Financial investment decisions totaled 49 million euros during
the 1(st) half of 2020 with several bolt-on acquisitions in Home
Healthcare in Europe and in Industrial Merchant in North America
and China. These investments were very high during the 1(st) half
of 2019, at 0.5 billion euros, including the acquisition of Tech
Air in the United States.
The investment backlog increased by almost 100 million euros
compared with both the end of 2019 and the 1(st) quarter of 2020,
and reached 2.9 billion euros. The Oil & Gas market represented
less than 15% of the investment backlog and the share from
Electronics grew over the 1(st) half. These investments should lead
to a future contribution to annual sales of approximately 1 billion
euros per year after the full ramp-up of the units, an increase
compared to 0.9 billion euros at the end of 2019.
Investment -- Air Liquide announced mid-April a major investment in Taiwan
to enter two of the world's most advanced semiconductor basins. Air Liquide
will invest close to 200 million euros to build production capacities in the
Science Parks of Tainan and Hsinchu, respectively located in the South and the
North of Taiwan. Under a long-term commitment with a semiconductor market
leader, this investment in new production capacity will allow the Group to
supply three high volume semiconductor fabrication plants under construction
in Tainan Science Park, as well as some of the world's most advanced R&D fabs
for logic IC chips in Hsinchu Science Park. -- Air Liquide and NLMK, a leading
steel producer in Russia, have entered into a new long-term partnership. Under
the agreement, Air Liquide will invest around 100 million euros in the
flagship site of NLMK in Lipetsk, a combination of three projects which
include the construction of a state-of-the-art Air Separation Unit (ASU), the
acquisition of existing hydrogen unit for the steel plant and of the unit for
Rare Gases production. This project also provides the base for growth of Air
Liquide's Industrial Merchant activity in one of the largest industrial
Merchant markets in the Moscow region.
START-UPS
Ten new units started up during the 1(st) half of 2020. These
notably included two new hydrogen production units for Large
Industries; one to supply the pipeline network of a major
industrial basin in South Korea and the other to meet growing
refining needs in Argentina. Ultra-pure nitrogen production units
were also started-up in Asia in Electronics, as well as biomethane
production units in the United States and the United Kingdom in
Global Markets & Technologies. Moreover, a krypton and xenon
production unit was started up in South Africa to meet the strong
demand for rare gases, in particular for Electronics and Aerospace.
This unit is part of the world's largest oxygen production plant,
which is managed and operated by Air Liquide.
The additional contribution to sales of unit start-ups and
ramp-ups totaled 80 million euros over the 1(st) half of 2020.
The Group confirmed the start-up dates of the main projects for
2020 and maintained its forecast for the additional contribution to
2020 sales of unit start-ups and ramp-ups of between 150 million
and 180 million euros. Based on the health situation as of the
beginning of the 3(rd) quarter, the Group's best estimate regarding
the additional contribution to sales for 2021 is in the range of
300 million euros, reflecting notably the postponement of certain
start-ups and ramp-ups to 2021 due to the COVID-19 crisis.
INVESTMENT OPPORTUNITIES
The 12-month portfolio of investment opportunities stood at 2.9
billion euros, stable compared to the end of 2019 and up compared
to the 1(st) quarter of 2020. Driven by a highly active 2(nd)
quarter 2020 despite the public health situation, new opportunities
offset investment decisions and the removal from the portfolio of
several projects that were either postponed beyond 12 months or
awarded to the competition.
Europe remained the leading region within the portfolio with
around one third of opportunities, closely followed by Asia, then
the Americas and the Middle East & Africa with similar levels
of opportunities.
Opportunities mainly came from Large Industries and included a
growing number of site takeover projects that may have a faster
contribution to growth.
The shares of Electronics and hydrogen and biomethane for clean
mobility projects were up markedly. Six projects have an investment
amount of more than 100 million euros and more than 25% of the
portfolio's amount corresponds to projects supporting the Climate
objectives.
RISK FACTORS
The current public health crisis relating to the global spread
of the COVID-19 virus, which is not specific to the Group,
increases certain risks or categories of risk specific to the Group
described on pages 86 to 97 of the 2019 Universal Registration
Document, for which the Group has applied management measures
adapted to each country and each business line, including in
particular:
-- Human Resources management related risks: an immediate effect of lockdown
measures introduced in various countries in which the Group operates was
the large-scale introduction of homeworking, the reorganization of
production facilities and the increased use of digital tools to ensure
business continuity. This adjustment and the associated risk management
were facilitated by the existence of a digital and collaborative
environment that had already been rolled out within the Group prior to
the pandemic, as well as the stepping up of virtual training courses
covering distance working and management. In the workplace, employees and
external service providers regularly receive specific protocols aimed at
the application of health measures required by the governments in order
to prevent the risk of contagion. External telephone support helplines
have also been introduced to help protect the mental health of employees.
-- Industrial risks: due to an organizational structure which was modified
by public health measures and at times a reduced number of employees
physically present at production facilities, the Group adapted its
processes to ensure the safety of employees and facilities, in addition
to specific awareness-raising actions.
-- Digital risks: the COVID-19 pandemic is a prime time for cyber-attacks
due to the climate of general uncertainty and worry and the increased use
of digital solutions, in particular for working from home. Against this
backdrop, the Group stepped up its awareness-raising actions for its
teams regarding issues such as fraud and the theft of personal and
confidential data. It was also necessary to adjust its connection
capacities and safety parameters to accommodate greater levels of
homeworking, while maintaining the efficiency of its major incident
detection and processing mechanism.
-- Customer risks: the pandemic increased the risk of the temporary or
permanent interruption to the business of certain customers which could
lead to late payments and /or payment defaults in the short term and to a
permanent decline in revenue in the longer term. The diversity of the
Group's sites, as well as the industries and sectors in which it works,
notably those where demand has increased significantly (healthcare,
pharmaceuticals) or which have demonstrated their resilience (food and
electronics), helps reduce its exposure to this risk.
-- Counterparty and liquidity risks: various prudential measures were taken
to strengthen the Group's short- and medium-term liquidity and thus
contribute to its resilience, with in particular a 1 billion euro bond
issue in March and the introduction of an additional cost reduction and
control plan.
-- Regulatory and legal risks: in response to the pandemic, states have
modified several regulatory and legal provisions governing the manner in
which professional activities should be conducted using special purpose
mechanisms (laws or ordinances). The Group monitored these changes and,
where necessary, integrated them to its processes. Moreover, the pandemic,
with the urgent demand for medical supplies, the simplification of rules
governing procurement, and the closure of borders, exposes the Group in
certain regions to an increased risk of corruption. Since the beginning
of the crisis, the Group has strengthened awareness-raising measures for
its anti-corruption framework.
At the same time, the Group moved quickly to implement a crisis
management mechanism that was both global (travel ban, digital
protection, etc.) and local (contact with authorities to ensure
that the Group's business was classed as essential to enable its
operating continuity) while also facilitating the transfer of
expertise between regions according to the trajectory of the
pandemic.
As part of the Group's crisis management mechanism, the
operational business continuity plans were activated, and remote
working for teams implemented.
Nevertheless, the Group believes that the uncertainty
surrounding the duration, scale and future trajectory of the
pandemic (including the prospect of additional waves of infection
and potential mutations in the virus), coupled with the pace at
which lockdown measures are eased, make it difficult to predict the
global impact on the economies of the Group's main markets and, as
a result, on its financial situation.
Although this crisis increases the probability and the impact of
the above-mentioned risk factors, it is not of a nature to call
into question the scope and classification of these Group-specific
risks as presented in the 2019 Universal Registration Document.
Nonetheless, other risks, which were unknown at the date of this
document, could occur and have a negative effect on the Group's
business.
2020 OUTLOOK
This exceptional first half of the year once again demonstrates
the Group's resilience in the face of this unprecedented health
crisis. Sales for the half year totaled more than 10 billion euros,
marking a limited decline of -3.2% on a comparable basis. This
reflects the solid performance of Gas & Services, which
represent 96% of revenue, and of Global Markets &
Technologies.
Within Gas & Services, Electronics sales increased;
Healthcare, at the frontline of the pandemic, posted strong growth.
Large Industries showed resilience, whereas Industrial Merchant was
more impacted. Geographically speaking, activity levels reflect the
evolution of the pandemic. China has returned to levels of solid
growth, signs of a recovery are appearing in Europe, whereas the
situation in the Americas remains contrasted.
The Group's operating margin has climbed a further +50 basis
points, excluding the energy impact. This was driven by the ongoing
efficiency programs in the amount of 200 million euros, in line
with the annual objective of more than 400 million euros, and by an
additional cost containment plan launched in response to the
crisis. The margin was also supported by the strength of the price
policy and of the portfolio management.
Net profit improved by 1.8%. The cash flow to sales ratio was
particularly high at 23.1%. The debt-to-equity ratio was down
compared with its level at June 30, 2019.
As 12-month investment opportunities remained dynamic,
industrial investment decisions for the first half were high, at
1.3 billion euros. These decisions, a third of which are
climate-related projects, include innovation investments and
customer asset takeover opportunities, leading to greater
industrial and environmental efficiency.
Air Liquide is a key player of the climate and the energy
transition with oxygen and hydrogen. Thanks to its presence across
all business sectors, the Group has a major role to play in the
current economic and societal transformation.
In a context of limited local lockdowns and progressive recovery
during the second half of 2020, Air Liquide is confident in its
ability to further increase its operating margin and to deliver net
profit close to preceding year level, at constant exchange
rates.
To be noted, 2020 net profit as published should increase
provided that the schülke divestiture project is completed within
the year. 2020 recurring net profit, meaning excluding the gain
from schülke divestiture and exceptional and significant items that
have no impact on the operating income recurring, should be close
to 2019 recurring net profit at constant exchange rates.
APPICES
Performance indicators
Performance indicators used by the Group that are not directly
defined in the financial statements have been prepared in
accordance with the AMF position 2015-12 about alternative
performance measures.
The performance indicators are the following:
Currency, energy and significant scope impacts
Comparable sales change and comparable operating income
recurring change
Operating margin and operating margin excluding energy
Recurring net profit Group share
Net Profit Excluding IFRS16
Net Profit Recurring Excluding IFRS16
Return on Capital Employed (ROCE)
Recurring ROCE
Definition of Currency, energy 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 indexed to energy year (N-1) x (Average energy
price in year (N) - Average energy price in 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.
Calculation of performance indicators (Semester)
COMPARABLE SALES CHANGE AND COMPARABLE OPERATING INCOME
RECURRING CHANGE
Comparable changes for sales and operating income recurring
exclude the currency, energy and significant scope impacts
described above.
For the 1(st) half 2020, the calculations are the following:
H1 H1
2020/2019 Natural Significant 2020/2019
(in millions of H1 Published Currency gas Electricity scope Comparable
euros) 2020 Growth impact impact impact impact Growth
Revenue
Group 10,273 -6.2% 11 (239) (62) (45) -3.2%
Impacts in % +0.1% -2.2% -0.5% -0.4%
Gas & Services 9,920 -5.8% 10 (239) (62) (45) -2.7%
Impacts in % +0.1% -2.2% -0.6% -0.4%
Operating Income
Recurring
Group 1,813 0.0% 0 - - (4) +0.2%
Impacts in % +0.0% - - -0.2%
Gas & Services 1,947 +0.4% 0 - - (4) +0.7%
Impacts in % +0.0% - - -0.3%
OPERATING MARGIN AND OPERATING MARGIN EXCLUDING ENERGY
The operating margin is the ratio of the operating income
recurring divided by revenue. The operating margin excluding energy
corresponds to the operating income recurring, not affected by the
indexation effect of electricity and natural gas, divided by
revenue excluding the energy impact. Natural Gas and Electricity
impacts used for this calculation include currency impact on their
respective amounts.
H1 2020,
excluding
Natural gas Electricity energy
H1 2020 impact impact impact
Revenue Group 10,273 (240) (63) 10,576
Gas & Services 9,920 (240) (63) 10,223
Operating
Income
Recurring Group 1,813 - - 1,813
Gas & Services 1,947 - - 1,947
Operating
Margin Group 17.6% 17.1%
Gas & Services 19.6% 19.0%
RECURRING NET PROFIT GROUP SHARE
The recurring net profit Group share corresponds to the net
profit Group share excluding exceptional and significant
transactions that have no impact on the operating income
recurring.
The recurring net profit Group share in 1(st) half 2020 excluded
the exceptional expenses (after-tax) linked to the management of
the COVID-19 pandemic during the period. It reached 1,113.1 million
euros.
The recurring net profit Group share in 1(st) half 2019 excluded
the provision for the after-tax loss on the Fujian Shenyuan
divestment. It reached 1,126.0 million euros.
H1 2020/2019
H1 2019 H1 2020 Growth
(A) Net Profit (Group Share) - As
Published 1,059.0 1,078.4 + 1.8 %
(B) Exceptional and significant
transactions after-tax with no impact
on OIR
- Provision on after-tax loss on the
Fujian Shenyuan divestment (66.8)
- Exceptional expenses linked to the
management of the COVID-19 pandemic (34.7)
(A) - (B) = Net Profit Recurring (Group
Share) 1,125.8 1,113.1 - 1.1 %
NET PROFIT EXCLUDING IFRS16 AND NET PROFIT RECURRING EXCLUDING
IFRS16
H1 2019 2019 H1 2020
(A) Net Profit as Published 1,107.2 2,337.6 1,124.6
(B) = IFRS16 Impact(a) (7.6) (14.4) (6.8)
(A) - (B) = Net Profit excluding IFRS16 1,114.8 2,352.0 1,131.4
(a) The IFRS16 impact includes the reintegration of leasing
expenses less depreciation and other financial expenses booked in
relation to IFRS16.
H1 2019 2019 H1 2020
(A) Net Profit as Published 1,107.2 2,337.6 1,124.6
(B) Exceptional and significant
transactions after-tax with no impact on
OIR (66.8) (65.9)(b) (34.7)
(A) - (B) = Net Profit Recurring 1,174.0 2,403.5 1,159.3
(C) IFRS16 Impact(a) (7.6) (14.4) (6.8)
(A) - (B) - (C) = Net Profit Recurring
excluding IFRS16 1,181.6 2,417.9 1,166.1
(a) The IFRS16 impact includes the reintegration of leasing
expenses less depreciation and other financial expenses booked in
relation to IFRS16.
(b) Actual after-tax loss on the Fujian Shenyuan
divestiture.
RETURN ON CAPITAL EMPLOYED - ROCE
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 excluding IFRS16 - net finance
costs after taxes for the period considered.
For the denominator: the average of (total shareholders' equity
excluding IFRS16 + net debt) at the end of the past three
half-years.
ROCE
H1 2019 2019 H1 2020 Calculation
(in millions of
euros) (a) (b) (c)
Net Profit
Numerator Excluding
(b) - (a) + (c) IFRS16 1,114.8 2,352.0 1,131.4 2,368.6
Net Finance
costs (185.1) (361.6) (170.5) (347.0)
Effective Tax
Rate (1) 25.4% 25.0% 25.2%
Net Finance
costs after
tax (138.1) (271.2) (127.5) (260.6)
Net Profit -
Net financial
costs after
tax 1,252.9 2,623.2 1,258.9 2,629.2
Total Equity
Denominator Excluding
((a)+(b)+(c))/3 IFRS16 17,966.0 19,338.8 18,777.5 18,694.1
Net Debt 13,698.8 12,373.3 13,175.7 13,082.6
Average of
(total equity
+ net debt) 31,664.8 31,712.1 31,953.2 31,776.7
ROCE 8.3%
(1) excluding non-recurring tax impact
RECURRING ROCE
The recurring ROCE is calculated in the same manner as the ROCE
using the recurring net profit excluding IFRS16 for the
numerator.
ROCE
H1 2019 2019 H1 2020 Calculation
(in millions of
euros) (a) (b) (c)
Net Profit
Recurring
Numerator Excluding
(b) - (a) + (c) IFRS16 1,181.6 2,417.9 1,166.1 2,402.4
Net Finance
costs (185.1) (361.6) (170.5) (347.0)
Effective Tax
Rate (1) 25.4% 25.0% 25.2%
Net Finance
costs after
tax (138.1) (271.2) (127.5) (260.6)
Recurring Net
Profit - Net
financial
costs after
tax 1,319.7 2,689.1 1,293.6 2,663.0
Total Equity
Denominator Excluding
((a)+(b)+(c))/3 IFRS16 17,966.0 19,338.8 18,777.5 18,694.1
Net Debt 13,698.8 12,373.3 13,175.7 13,082.6
Average of
(total equity
+ net debt) 31,664.8 31,712.1 31,953.2 31,776.7
Recurring ROCE 8.4%
(1) excluding non-recurring tax impact
Calculation of performance indicators (Quarter)
Q2 Q2
2020/2019 Natural Significant 2020/2019
Q2 Published Currency gas Electricity scope Comparable
2020 Growth impact impact impact impact Growth
Revenue
Group 4,903 -11.0% (31) (135) (31) (32) -6.9%
Impacts
in % -0.5% -2.5% -0.5% -0.6%
Gas &
Services 4,729 -10.7% (30) (135) (31) (32) -6.5%
Impacts
in % -0.5% -2.6% -0.6% -0.5%
2(nd) quarter 2020 revenue
BY GEOGRAPHY
Revenue
(in millions of euros) Q2 2019 Q2 2020 Published change Comparable change
Americas 2,148 1,853 -13.7% -11.4%
Europe 1,782 1,649 -7.4% -2.5%
Asia-Pacific 1,211 1,097 -9.4% -3.3%
Middle East & Africa 158 130 -17.6% -8.6%
Gas & Services Revenue 5,299 4,729 -10.7% -6.5%
Engineering &
Construction 83 52 -38.5% -38.4%
Global Markets &
Technologies 129 122 -5.8% -5.7%
GROUP REVENUE 5,511 4,903 -11.0% -6.9%
BY WORLD BUSINESS LINE
Revenue
(in millions of euros) Q2 2019 Q2 2020 Published change Comparable change
Large industries 1,414 1,136 -19.7% -4.2%
Industrial Merchant 2,462 2,107 -14.4% -14.4%
Healthcare 924 977 +5.8% +7.6%
Electronics 499 509 +2.1% +0.5%
GAS & SERVICES REVENUE 5,299 4,729 -10.7% -6.5%
Geographic and segment information
H1 2019 H1 2020
Operating Operating
(in millions of income OIR income OIR
euros and %) Revenue recurring margin Revenue recurring margin
Americas 4,217 730 17.3% 3,975 744 18.7%
Europe 3,611 688 19.0% 3,440 680 19.8%
Asia-Pacific 2,405 473 19.7% 2,236 484 21.7%
Middle East and
Africa 303 47 15.7% 269 39 14.3%
Gas & Services 10,536 1,938 18.4% 9,920 1,947 19.6%
Engineering and
Construction 176 0 0.1% 104 (21) -20.5%
Global Markets &
Technologies 240 24 9.9% 249 24 9.8%
Reconciliation - (149) - - (137) -
TOTAL GROUP 10,952 1,814 16.6% 10,273 1,813 17.6%
Consolidated income statement
1(st) half 2019
(in millions of euros) 1(st) half 2019 restated 1(st) half 2020
Revenue 10,952.1 10,952.1 10,272.8
Other income 78.1 78.1 53.3
Purchases (4,230.3) (4,230.3) (3,631.3)
Personnel expenses (2,183.5) (2,183.5) (2,183.1)
Other expenses (1,738.6) (1,738.6) (1,614.3)
Operating income recurring
before depreciation and
amortization 2,877.6 2,877.6 2,897.4
Depreciation and
amortization expenses (1,063.7) (1,063.7) (1,084.3)
Operating income recurring 1,813.9 1,813.9 1,813.1
Other non-recurring
operating income 0.1 0.1 9.3
Other non-recurring
operating expenses (85.7) (85.7) (101.5)
Operating income 1,728.3 1,728.3 1,720.9
Net finance costs (a) (205.7) (185.1) (170.5)
Other financial income 3.8 3.8 9.6
Other financial expenses
(a) (36.6) (57.2) (55.1)
Income taxes (385.4) (385.4) (380.8)
Share of profit of
associates 2.8 2.8 0.5
PROFIT FOR THE PERIOD 1,107.2 1,107.2 1,124.6
- Minority interests 48.0 48.0 46.2
- Net profit (Group share) 1,059.2 1,059.2 1,078.4
Basic earnings per share
(in euros) 2.25 2.25 2.29
(a) Restated 1(st) half 2019 following changes in 2019 annual
financial statements: financial costs before taxes linked to IFRS
16 are reclassified in other financial expenses whereas they were
included in net finance costs on 30 june 2019.
Consolidated balance sheet
ASSETS (in millions of euros) December 31, 2019 June 30, 2020
Goodwill 13,943.0 13,914.6
Other intangible assets 1,555.0 1,511.5
Property, plant and equipment 21,117.8 20,921.7
Non-current assets 36,615.8 36,347.8
Non-current financial assets 646.0 618.6
Investments in associates 154.4 163.9
Deferred tax assets 256.6 252.5
Fair value of non-current derivatives
(assets) 26.3 76.7
Other non-current assets 1,083.3 1,111.7
TOTAL NON-CURRENT ASSETS 37,699.1 37,459.5
Inventories and work-in-progress 1,531.5 1,579.1
Trade receivables 2,477.9 2,247.3
Other current assets 803.0 804.8
Current tax assets 98.0 8.0
Fair value of current derivatives (assets) 31.3 35.3
Cash and cash equivalents 1,025.7 1,474.2
TOTAL CURRENT ASSETS 5,967.4 6,148.7
ASSETS HELD FOR SALE(a) - 305.2
TOTAL ASSETS 43,666.5 43,913.4
EQUITY AND LIABILITIES (in millions of
euros) December 31, 2019 June 30, 2020
Share capital 2,602.1 2,604.0
Additional paid-in capital 2,572.9 2,594.4
Retained earnings 11,582.7 12,202.5
Treasury shares (128.8) (177.4)
Net profit (Group share) 2,241.5 1,078.4
Shareholders' equity 18,870.4 18,301.9
Minority interests 454.0 454.4
TOTAL EQUITY 19,324.4 18,756.3
Provisions, pensions and other employee
benefits 2,521.2 2,381.9
Deferred tax liabilities 2,051.9 2,048.4
Non-current borrowings 11,567.2 12,487.9
Non-current lease liabilities 1,087.8 1,069.9
Other non-current liabilities 261.6 185.8
Fair value of non-current derivatives
(liabilities) 45.8 38.9
TOTAL NON-CURRENT LIABILITIES 17,535.5 18,212.8
Provisions, pensions and other employee
benefits 268.4 259.6
Trade payables 2,566.6 2,199.3
Other current liabilities 1,629.0 1,688.3
Current tax payables 200.1 201.2
Current borrowings 1,831.8 2,162.0
Current lease liabilities 243.6 232.5
Fair value of current derivatives
(liabilities) 67.1 24.6
TOTAL CURRENT LIABILITIES 6,806.6 6,767.5
LIABILITIES HELD FOR SALE(a) - 176.8
TOTAL EQUITY AND LIABILITIES 43,666.5 43,913.4
(a) On April 7, 2020, Air Liquide announced that it has entered
into exclusive negotiation with EQT, a global investment
organization, for the sale of its subsidiary Schülke & Mayr
GmbH.
Consolidated cash flow statement
1(st) half 2019
(in millions of euros) 1(st) half 2019 restated(a) 1(st) half 2020
Operating activities
Net profit (Group share) 1,059.2 1,059.2 1,078.4
Minority interests 48.0 48.0 46.2
Adjustments:
-- Depreciation and
amortization 1,063.7 1,063.7 1,084.3
-- Changes in deferred
taxes (0.8) (0.8) 1.8
-- Changes in provisions 36.6 36.6 (12.9)
-- Share of profit of
associates (2.8) (2.8) (0.4)
-- Profit/loss on disposal
of assets (54.9) (54.9) (7.2)
-- Net finance costs(a) 147.9 127.3 119.7
-- Other non cash items(a) 71.1 60.8
Cash flows from operating
activities before changes
in working capital 2,296.9 2,347.5 2,370.7
Changes in working capital (330.7) (330.7) (157.0)
Other cash items(a) (8.1) (58.6) (60.9)
Net cash flows from
operating activities 1,958.1 1,958.1 2,152.8
Investing activities
Purchase of property, plant
and equipment and
intangible assets (1,201.3) (1,201.3) (1,319.9)
Acquisition of consolidated
companies and financial
assets (446.4) (446.4) (63.9)
Proceeds from sale of
property, plant and
equipment and intangible
assets 110.8 110.8 68.7
Proceeds from sale of
financial assets 0.1 0.1 13.8
Dividends received from
equity affiliates 1.3 1.3 2.0
Net cash flows used in
investing activities (1,535.5) (1,535.5) (1,299.3)
Financing activities
Dividends paid
-- L'Air Liquide S.A. (1,161.9) (1,161.9) (1,306.7)
-- Minority interests (36.2) (36.2) (42.8)
Proceeds from issues of
share capital 23.4 23.4 26.7
Purchase of treasury shares (148.8) (148.8) (50.4)
Net financial interests
paid (187.5) (187.5) (166.9)
Increase (decrease) in
borrowings 399.5 399.5 1,319.6
Lease liabilities
repayments(b) (121.4)
Net interests paid on lease
liabilities(b) (20.3)
Transactions with minority
shareholders (1.5) (1.5) (9.7)
Net cash flows from (used
in) financing activities (1,113.0) (1,113.0) (371.9)
Effect of exchange rate
changes and change in
scope of consolidation 24.7 24.7 11.7
Net increase (decrease) in
net cash and cash
equivalents (665.7) (665.7) 493.3
NET CASH AND CASH
EQUIVALENTS AT THE
BEGINNING OF THE PERIOD 1,548.6 1,548.6 896.5
NET CASH AND CASH
EQUIVALENTS AT THE END OF
THE PERIOD 882.9 882.9 1,389.8
(a) Restated 1(st) half 2019 following changes in 2019 annual
financial statements: financial costs before taxes linked to IFRS
16 are reclassified in other financial expenses whereas they were
included in net finance costs on 30 june 2019. A distinction is now
made between other non-cash items under which the adjustment of
this cost is recognized as well as income and expenses under IAS 19
and IFRS 2 and other cash items.
(b) As of June 30, 2019, lease debts were considered as
financial debts. Since December 31, 2019, repayments of lease debts
and related interest paid out have been reported separately.
The analysis of net cash and cash equivalents at the end of the
period is as follows:
(in millions of euros) June 30, 2019 December 31, 2019 June 30, 2020
Cash and cash equivalents 1,033.5 1,025.7 1,474.2
Bank overdrafts (included in
current borrowings) (150.6) (129.2) (84.4)
NET CASH AND CASH EQUIVALENTS 882.9 896.5 1,389.8
Net debt calculation
(in millions of euros) June 30, 2019 December 31, 2019 June 30, 2020
Non-current borrowings (a) (11,123.7) (11,567.2) (12,487.9)
Current borrowings (a) (3,608.6) (1,831.8) (2,162.0)
TOTAL GROSS DEBT (14,732.3) (13,399.0) (14,649.9)
Cash and cash equivalents 1,033.5 1,025.7 1,474.2
TOTAL NET DEBT AT THE END OF
THE PERIOD (13,698.8) (12,373.3) (13,175.7)
(a) The lease liabilities are not included in the financial debt
since December 31, 2019. June 30, 2019 has been restated from the
impacts of these liabilities in order to have the same comparison
basis with December 31, 2019 and June 30, 2020.
Statement of changes in net debt
(in millions of euros) 1(st) half 2019 Year 2019 1(st) half 2020
Net debt at the beginning of the
period (12,534.9) (12,534.9) (12,373.3)
Net cash flows from operating
activities 1,958.1 4,712.2 2,152.8
Net cash flows used in investing
activities (1,535.5) (2,584.8) (1,299.3)
Net cash flows used in financing
activities excluding changes in
borrowings(a) (1,456.2) (1,663.8) (1,524.6)
Total net cash flows (1,033.6) 463.6 (671.1)
Effect of exchange rate changes,
opening net debt of newly
acquired companies and
others(a) (6.8) (62.4) (14.5)
Adjustment of net finance
costs(a) (123.5) (239.6) (116.8)
Change in net debt (1,163.9) 161.6 (802.4)
NET DEBT AT THE END OF THE
PERIOD (13,698.8) (12,373.3) (13,175.7)
(a) The lease liabilities are not included in the financial debt
since December 31, 2019. June 30, 2019 has been restated from the
impacts of these liabilities in order to have the same comparison
basis with December 31, 2019 and June 30, 2020.
The slideshow that accompanies this release is available as of
9:30 am (Paris time) at www.airliquide.com.
Throughout the year, follow Air Liquide on Twitter:
@AirLiquideGroup.
UPCOMING EVENTS
2020 3(rd) Quarter Revenue:
October 23, 2020
A world leader in gases, technologies and services for Industry and
Health, Air Liquide is present in 80 countries with approximately 67,000
employees and serves more than 3.7 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, regular and
responsible 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 22 billion euros in 2019 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.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200729006064/en/
CONTACT: Investor Relations
IRTeam@airliquide.com
Media Relations
media@airliquide.com
SOURCE: Air Liquide
Copyright Business Wire 2020
(END) Dow Jones Newswires
July 30, 2020 01:35 ET (05:35 GMT)
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