Commenting at the 1st 1/2 of 2022, François Jackow, Leader Government Officer of the Air Liquide Team, mentioned:
“The Team delivered a very sturdy efficiency all through the 1st 1/2 of 2022. That is much more outstanding taking into account the in particular advanced macroeconomic and geopolitical context. Earnings reached 14.2 billion euros, an building up of +7.7% on a similar foundation. As revealed, income used to be up +31%, reflecting the pointy building up in power costs particularly. Expansion used to be completed throughout all actions: Fuel & Products and services, which represents 96 % of income, Engineering & Development and International Markets & Applied sciences.
In Fuel & Products and services, all geographies advanced, pushed basically by way of Commercial Service provider and Electronics, which loved sturdy enlargement in particular in Asia. In Commercial Service provider, worth advent and dynamic worth control allowed the Team to switch the rise in prices, whilst in Huge Industries, the rise in power costs is contractually handed directly to shoppers.
On this context, the Team’s working margin advanced once more considerably by way of +50 foundation issues, except the power have an effect on. The Team additionally continues taking potency measures, significantly via centered business investments.
Routine web benefit reached 1.6 billion euros, an building up of +20.4% except the forex have an effect on. Internet benefit (Team proportion) used to be 1.3 billion euros, an building up as revealed of +5.3% in spite of a non-recurring provision on our belongings in Russia. Money waft remained excessive at 23.5% of gross sales. The stability sheet is cast, with a web debt-to-equity ratio down once more to 46%. Routine ROCE persevered to toughen and reached 9.7% on the finish of June, consistent with the objective of 10% by way of 2023.
The Team maintained a robust funding momentum, which is a ensure of long term enlargement and the expression of its dedication to combat local weather trade. With greater than 40% of tasks related to the power transition, 12-month funding alternatives are a large number of and general 3.3 billion euros. Funding choices had been excessive and reached 1.8 billion euros this half-year. The mission backlog, at 3 billion euros, stays excessive.
Given the sturdy efficiency within the 1st 1/2 of 2022, mixed with a extra resilient trade style and a transparent strategic plan, in addition to dedicated groups, whose willpower I commend, we’re getting into the second one 1/2 of the 12 months.
In 2022, assuming no important financial disruption, Air Liquide is assured in its skill to additional building up its working margin and to ship routine web benefit enlargement at consistent trade charges.”
Highlights of the 1st 1/2 2022
Implementation of a new governance inside Air Liquide, consistent with earlier bulletins. On June 1, François Jackow was the Team’s Leader Government Officer, whilst Benoît Potier stays Chairman of the Board of Administrators. François Jackow used to be additionally appointed Board Director of Air Liquide by way of the Team’s Shareholders all through the Normal Assembly on Would possibly 4.
Release of ADVANCE, the brand new Air Liquide strategic plan for 2025, which puts sustainable building on the middle of the Team’s technique and combines economic and extra-financial efficiency.
Mobilization of the Team to reinforce sufferers of the conflict in Ukraine, significantly in the course of the Air Liquide Basis.
Sale of Commercial Service provider trade positioned within the United Arab Emirates and Bahrain.
Validation by way of the Science Primarily based Objectives initiative (SBTi) of Air Liquide’s goal to scale back scope 1 & 2 CO2 emissions by way of 2035 as certified and aligned with local weather science.
Newsletter of Air Liquide’s first Sustainable Construction Document, which units out the Team’s ambitions for Sustainable Construction and its 2021 extra-financial effects.
Attribution of “A-” score by way of the CDP in each classes of local weather trade and water control. This score acknowledges the “Management Degree” of the Team’s dedication to the surroundings.
Signature of a long-term renewable power Energy Acquire Settlement (PPA) with Vattenfall within the Netherlands for offshore wind capability of round 115 MW, lately underneath building. That is the greatest PPA of its type signed by way of Air Liquide on the planet so far.
Signature of a 10-year settlement with Shell Power Europe Restricted (SEEL) for the acquire of renewable power to energy business and clinical gasoline manufacturing operations within the north east of Italy.
In america, building of Air Liquide’s biggest biomethane manufacturing plant on the planet.
Decarbonizing the trade:
Choice of the Air Liquide and EQIOM mission by way of the Ecu Innovation Fund with the purpose to develop into the EQIOM plant close to Dunkirk, France, into one of the most first carbon-neutral cement vegetation in Europe.
Memorandum of Working out with Lhoist to decarbonize their lime manufacturing unit positioned in Réty, within the Hauts-de-France area, the usage of Air Liquide’s proprietary CryocapTM carbon seize era.
Variety by way of the Ecu Innovation Fund of the [email protected] mission, collectively evolved by way of Air Liquide and BASF, with the target to broaden the sector’s biggest cross-border carbon seize and garage (CCS) worth chain mission across the port of Antwerp.
Memorandum of Working out signed with Eni to decarbonize hard-to-abate industries within the Mediterranean Basin.
Settlement signed with Sogestran to broaden delivery answers for carbon control, as a part of carbon seize and garage tasks.
Improve of the French executive to the Air Liquide Normand’Hy mission to produce renewable hydrogen on a big scale. This mission could have an preliminary capability of 200 MW and can give a contribution to the advent of a French and Ecu low-carbon hydrogen trade, in addition to to the decarbonization of the Normandy business basin.
Advent of a three way partnership with Siemens Power devoted to the collection manufacturing of commercial scale renewable hydrogen electrolyzers in Europe. Certainly one of this three way partnership’s first tasks would be the Air Liquide Normand’Hy electrolyzer mission.
Memorandum of Working out with CaetanoBus and Toyota Motor Europe to offer built-in hydrogen mobility answers (building of infrastructure and fleets of light- and heavy-duty automobiles).
Memorandum of Working out signed with Airbus, Incheon Airport and Korean Air to review the usage of hydrogen at Incheon Global Airport.
Plan with Groupe ADP to create the first engineering three way partnership to accompany airports of their tasks to combine hydrogen of their infrastructure.
Advent of a three way partnership with Lotte Chemical, a significant participant in Korea, to broaden the hydrogen provide chain for mobility markets in South Korea.
Electronics & Business:
Throughout the context of long-term contracts with two global leaders in semiconductors for the provision of ultra-high purity business gases in Japan, Air Liquide has begun a staged funding of greater than 300 million euros in 4 state of the art manufacturing vegetation.
Signature of long-term agreements to provide a semiconductor production web site in Arizona, United States. As a part of this settlement, Air Liquide will make investments just about 60 million US bucks to construct and perform onsite vegetation and techniques.
Lengthy-term contract with EZZ Metal in Egypt, underneath which Air Liquide Egypt will make investments round 80 million US bucks in construction an Air Separation Unit (ASU). This ASU will fortify the Team’s management within the Ain Sokhna business basin.
Higher presence in India with an funding of round 40 million euros in a brand new ASU devoted to Commercial Service provider actions, within the state of Uttar Pradesh in northern India.
Team income totaled 14,207 million euros within the 1st 1/2 of 2022, a sturdy similar enlargement of +7.7%. Gross sales had been up +7.5% on a similar foundation all through the twond quarter of 2022 when put next with the twond quarter of 2021. Team income as revealed higher considerably by way of +31.0% all through the 1st 1/2, with an overly excessive power have an effect on of +16.8% in addition to favorable forex (+5.8%) and demanding scope (+0.7%) affects.
This efficiency used to be delivered in a difficult context of exceptionally excessive power costs, sturdy inflation, pressure on provide chains and the conflict in Ukraine. The Team benefited from a cast trade style and variety of commercial succeed in in the case of geographies, companies, end-markets and shoppers which ensured a resilient efficiency and allowed the Team to benefit from all enlargement alternatives. Its core positioning in enlargement markets of the long run (particularly the power transition, Semiconductors and Healthcare) reinforces those attributes.
Fuel & Products and services income amounted to 13,600 million euros all through the 1st 1/2, representing an building up of +7.2% on a similar foundation. Gross sales as revealed for the 1st 1/2 of 2022 confirmed extraordinarily sturdy enlargement of +31.4%, with an overly excessive power have an effect on at +17.6% in addition to sure forex (+5.9%) and demanding scope (+0.7%) affects.
- Fuel & Products and services income within the Americas reached 5,017 million euros within the 1st 1/2 of 2022, representing an overly sturdy building up of +9.2% on a similar foundation. Huge Industries used to be up +5.3%, pushed by way of cast call for and the start-up of recent devices. The marked building up in costs contributed considerably to the excessive gross sales enlargement in Commercial Service provider (+11.6%). Healthcare income used to be up +2.2%, led by way of proximity care in america and House Healthcare in Latin The united states, in spite of a decline in clinical oxygen gross sales for the remedy of covid-19. In any case, all trade segments inside Electronics contributed to the in particular dynamic enlargement (+8.2%).
- Earnings in Europe used to be up +6.4% on a similar foundation all through the 1st 1/2 of 2022 and reached 5,424 million euros. This sturdy enlargement used to be contrasted around the trade strains in a context of exceptionally excessive power costs and the conflict in Ukraine. Expansion sped up in Commercial Service provider, pushed by way of report worth will increase, and reached a in particular excessive of +22.9% within the 1st 1/2, offsetting the -7.4% decline in Huge Industries gross sales. Regardless of a excessive foundation of comparability because of the covid-19 pandemic in 2021, Healthcare gross sales had been up +3.3%, pushed by way of the momentum in House Healthcare.
- Gross sales in Asia-Pacific had been up +5.5% on a similar foundation within the 1st 1/2 of 2022 and totaled 2,746 million euros, pushed by way of in particular dynamic enlargement within the Electronics trade (+15.8%). Covid-19 similar lockdowns in China all through the twond quarter had an have an effect on on call for in different trade strains: Huge Industries gross sales had been solid (-0.2%) within the 1st 1/2, while Commercial Service provider gross sales had been up +2.5%, pushed by way of the acceleration in worth will increase all through the half-year.
- Earnings within the Center East and Africa totaled 413 million euros, representing a slight building up (+0.9%) on a similar foundation with the 1st 1/2 of 2021. Volumes higher sharply in South Africa with the combination of the 16 Sasol air separation devices whose gross sales had been identified as a part of the important scope have an effect on, and therefore excluded from similar enlargement. Gross sales had been solid over the half-year in Commercial Service provider, with trade line enlargement offset by way of two small divestitures within the Center East.
Huge Industries gross sales had been contrasted by way of area and general had been down moderately (-1.4%) on a similar foundation with the 1st 1/2 of 2021: gross sales loved sustained enlargement within the Americas, had been solid in Asia, and had been down in Europe. The Commercial Service provider trade posted sturdy income enlargement of +12.7% within the 1st 1/2, pushed by way of the acceleration of pricing over the half-year and by way of cast volumes. Electronics gross sales enlargement momentum used to be in particular dynamic, at +15.5%, with a robust contribution from all trade segments. In Healthcare, in spite of a decline in clinical oxygen volumes for the remedy of covid-19, income used to be up +2.3% pushed by way of the sturdy building in House Healthcare, significantly in Europe, and in proximity care in america.
Consolidated income from Engineering & Development totaled 221 million euros within the 1st 1/2 of 2022, representing sturdy similar enlargement of +29.0%. Order consumption totaled 526 million euros, consistent with the excessive stage recorded within the 1st 1/2 of 2021.
International Markets & Applied sciences gross sales totaled 386 million euros within the 1st 1/2, representing marked similar enlargement of +13.8%. The biogas trade loved sturdy momentum, making the most of the ramp-up of recent manufacturing devices in Europe and america, the rise in gross sales costs on the subject of the spike in power worth, and gear gross sales in america.
Efficiencies amounted to 167 million euros and represented a saving of two.1% of the fee base. In a context of excessive inflation detrimental to procurement efficiencies, the concern for the groups is to restrict price will increase and switch them to gross sales costs.
Team Running Source of revenue Routine (OIR) reached 2,286 million euros within the 1st 1/2 of 2022, an building up of +17.4% and of +9.2% on a similar foundation, which is considerably upper than the similar gross sales enlargement of +7.7%.
The working margin (OIR to income ratio) stood at 16.1% as revealed, representing a -190 foundation level decline when put next with the 1st 1/2 of 2021 due basically to the pointy building up in power prices that are contractually handed via to Huge Industries shoppers. This subsequently has a dilutive have an effect on at the revealed margin (with out impacting working source of revenue in absolute worth). Except for the power have an effect on, the working margin advanced very considerably by way of +50 foundation issues when put next with the 1st 1/2 of 2021. This efficiency integrates the dilutive have an effect on of sturdy inflation on prices instead of power prices and which is transferred to gross sales costs.
The web benefit (Team proportion) amounted to 1,305 million euros within the 1st 1/2 of 2022, an building up of +5.3% as revealed. Except for the phenomenal provision at the Team’s business belongings in Russia, which has no have an effect on on money, a provision for dangers within the Engineering & Development trade, and a phenomenal source of revenue from Air Liquide taking regulate of a three way partnership in Asia-Pacific, routine web benefit (Team proportion) reached 1,551 million euros. It higher by way of +25.1% and +20.4% except the forex have an effect on, which is considerably upper than the similar gross sales enlargement of +7.7% over the half-year. Internet profits in keeping with proportion rose by way of +5.0% when put next with the 1st 1/2 of 2021, consistent with the rise in web benefit (Team proportion). Those stood at 2.50 euros in keeping with proportion when put next with 2.38 euros in keeping with proportion within the 1st 1/2 of 2021.
Money waft from working actions earlier than adjustments in web running capital amounted to 2,907 million euros all through the 1st 1/2 of 2022, representing a pointy building up of +17.1% and +11.5% except the forex have an effect on. This corresponds to a excessive stage of 20.5% of gross sales and 23.5% except the power have an effect on, and represents a +60 foundation level growth except the power have an effect on when put next with the 1st 1/2 of 2021.
Gross business capital expenditure amounted to 1,574 million euros, an building up of +9.4% when put next with the 1st 1/2 of 2021 and of +4.7% except the forex have an effect on. This represented 12.7% of gross sales except the power have an effect on, reflecting dynamic mission building process. Monetary investments stood at 54 million euros when put next with 569 million euros for the 1st 1/2 of 2021, together with roughly 480 million euros for the purchase of 16 Sasol air separation devices in South Africa.
The web debt-to-equity ratio, adjusted for the seasonal impact of the dividend fee, stood at 46.0%, down sharply when put next with 56.1% on the finish of June 2021.
The go back on capital hired after tax (ROCE) used to be 9.0% for the 1st 1/2 of 2022. Routine ROCE stood at 9.7%, an building up of +70 foundation issues when put next with the 1st 1/2 of 2021.
Within the 1st 1/2 of 2022, business and fiscal funding choices totaled 1,796 million euros. This compares to at least one,429 million euros all through the 1st 1/2 of 2021, except the purchase of Sasol’s Air Separation Gadgets (ASUs) in South Africa for about 480 million euros.
The funding backlog remained excessive at 3.0 billion euros.
The further contribution to income of unit start-ups and ramp-ups totaled 213 million euros over the 1st 1/2 of 2022. In 2022, the extra contribution to income of unit start-ups and ramp-ups is anticipated to be between 410 and 435 million euros.
The 12-month portfolio of funding alternatives stood at 3.3 billion euros on the finish of June 2022. Tasks associated with the power transition accounted for greater than 40% of the portfolio. Those significantly integrated tasks for renewable hydrogen manufacturing by way of water electrolysis, amenities for the seize of CO2 emitted by way of the Team’s or its shoppers’ devices, in addition to hydrogen mobility tasks in Europe and Asia. The proportion of the Electronics trade within the portfolio of alternatives higher and represented round 30%.
Air Liquide’s goal to scale back its Scope 1 & 2 CO2 emissions by way of 2035 has been validated by way of the Science Primarily based Objectives initiative (SBTi) as certified and aligned with local weather science. The Team is the first in its trade to acquire validation from the Science Primarily based Objectives Initiative. This approval represents a very powerful milestone in opposition to the Team’s ambition to succeed in carbon neutrality by way of 2050.
As prior to now introduced, a new governance has been carried out inside Air Liquide. Since June 1, 2022, Benoît Potier remained Chairman of the Board of Administrators and François Jackow, was Leader Government Officer for the Team.
The Air Liquide Board of Administrators met on July 27, 2022. All the way through this assembly, the Board reviewed the condensed consolidated economic statements for the primary 1/2 finishing June 30, 2022. Restricted assessment procedures had been finished with appreciate to the condensed consolidated meantime economic statements, and an unqualified assessment document is within the technique of being issued by way of the statutory auditors.
- ^ Except for outstanding and demanding transactions that haven’t any have an effect on at the working source of revenue routine.
- ^ Money Waft from Operations earlier than adjustments in WCR on Gross sales except power passthrough have an effect on.
- ^ Adjusted for dividend seasonality.
- ^ Routine ROCE in accordance with Routine Internet Benefit.
- ^ Running margin except power passthrough have an effect on. Routine web benefit except outstanding and demanding transactions that haven’t any have an effect on at the working source of revenue routine, and except the have an effect on of any US tax reform in 2022.
- ^ See definition within the appendix.
- ^ See definition and reconciliation within the appendix
- ^ Adjusted following the loose proportion attribution in June 2022.
- ^ See definition and reconciliation within the appendix.