Strong performance in a complex environment and confirmed
resilience of the business model
Regulatory News:
Air Liquide (Paris:AI):
Key Figures (in millions of
euros)
H1 2022
2022/2021 as published
2022/2021 comparable
(a)
Group Revenue
14,207
+31.0%
+7.7%
of which Gas & Services
13,600
+31.4%
+7.2%
Operating Income Recurring
(OIR)
2,286
+17.4%
+9.2%
Group OIR Margin
16.1%
-190 bps
Variation excluding energy (b)
+50 bps
Gas & Services OIR Margin
17.7%
-230 bps
Variation excluding energy (b)
+50 bps
Net Profit (Group Share)
1,305
+5.3%
Net Profit Recurring (Group Share) (c)
1,551
+25.1%
Variation Net Profit Recurring (Group
Share) excluding currency impact (b)
+20.4%
Earnings per Share (in euros)
2.50
+5.0%
Cash flow from operating activities before
changes in net working capital
2,907
+17.1%
Net Debt
€12.0 bn
Return on Capital Employed after tax -
ROCE
9.0%
-50 bps
Recurring ROCE (d)
9.7%
+70 bps
(a)
Change excluding the currency, energy
(natural gas and electricity) and significant scope impacts, see
reconciliation in appendix.
(b)
See reconciliation in appendix.
(c)
Excluding exceptional and significant
transactions that have no impact on the operating income recurring,
see reconciliation in appendix.
(d)
Based on the recurring net profit, see
reconciliation in appendix.
Commenting on the 1st half of 2022, François Jackow, Chief
Executive Officer of the Air Liquide Group, said:
“The Group delivered a very strong performance
during the 1st half of 2022. This is even more remarkable
considering the particularly complex macroeconomic and geopolitical
context. Revenue reached 14.2 billion euros, an increase of
+7.7% on a comparable basis. As published, revenue was up +31%,
reflecting the sharp increase in energy prices in particular.
Growth was achieved across all activities: Gas &
Services, which represents 96 % of revenue, Engineering
& Construction and Global Markets &
Technologies.
In Gas & Services, all geographies improved, driven
mainly by Industrial Merchant and Electronics, which
enjoyed strong growth particularly in Asia. In Industrial Merchant,
value creation and dynamic price management allowed the Group to
transfer the increase in costs, while in Large Industries, the
increase in energy prices is contractually passed on to
customers.
In this context, the Group’s operating margin improved
again significantly by +50 basis points, excluding the
energy impact. The Group also continues taking efficiency measures,
notably through targeted industrial investments.
Recurring net profit(1) reached 1.6 billion euros, an
increase of +20.4% excluding the currency impact. Net profit
(Group share) was 1.3 billion euros, an increase as published of
+5.3% despite a non-recurring provision on our assets in Russia.
Cash flow remained high at 23.5%(2) of sales. The balance sheet is
solid, with a net debt-to-equity ratio(3) down again to 46%.
Recurring ROCE(4) continued to improve and reached 9.7% at the end
of June, in line with the target of 10% by 2023.
The Group maintained a strong investment momentum, which is a
guarantee of future growth and the expression of its commitment to
fight climate change. With more than 40% of projects linked to
the energy transition, 12-month investment opportunities are
numerous and total 3.3 billion euros. Investment decisions were
high and reached 1.8 billion euros this half-year. The project
backlog, at 3 billion euros, remains high.
Given the strong performance in the 1st half of 2022,
combined with a more resilient business model and a clear strategic
plan, as well as committed teams, whose dedication I commend, we
are entering the second half of the year.
In 2022, assuming no significant economic disruption, Air
Liquide is confident in its ability to further increase its
operating margin and to deliver recurring net profit growth at
constant exchange rates(5).”
- Excluding exceptional and significant transactions that have no
impact on the operating income recurring.
- Cash Flow from Operations before changes in WCR on Sales
excluding energy passthrough impact.
- Adjusted for dividend seasonality.
- Recurring ROCE based on Recurring Net Profit.
- Operating margin excluding energy passthrough impact. Recurring
net profit excluding exceptional and significant transactions that
have no impact on the operating income recurring, and excluding the
impact of any US tax reform in 2022.
Highlights of the 1st half 2022
Corporate:
- Implementation of a new governance within Air Liquide,
in line with previous announcements. On June 1, François Jackow
became the Group’s Chief Executive Officer, while Benoît
Potier remains Chairman of the Board of Directors. François
Jackow was also appointed Board Director of Air Liquide by the
Group’s Shareholders during the General Meeting on May 4.
- Launch of ADVANCE, the new Air Liquide strategic plan
for 2025, which places sustainable development at the heart
of the Group’s strategy and combines financial and
extra-financial performance.
- Mobilization of the Group to support victims of the war in
Ukraine, notably through the Air Liquide Foundation.
- Sale of Industrial Merchant business located in the United
Arab Emirates and Bahrain.
Sustainable Development:
- Validation by the Science Based Targets initiative (SBTi) of
Air Liquide’s target to reduce scope 1 & 2 CO2 emissions by
2035 as qualified and aligned with climate science.
- Publication of Air Liquide’s first Sustainable Development
Report, which sets out the Group’s ambitions for Sustainable
Development and its 2021 extra-financial results.
- Attribution of “A-” rating by the CDP in both categories of
climate change and water management. This rating recognizes the
“Leadership Level” of the Group’s commitment to the
environment.
- Signature of a long-term renewable energy Power Purchase
Agreement (PPA) with Vattenfall in the Netherlands for offshore
wind capacity of around 115 MW, currently under construction. This
is the biggest PPA of its kind signed by Air Liquide in the
world to date.
- Signature of a 10-year agreement with Shell Energy Europe
Limited (SEEL) for the purchase of renewable energy to
power industrial and medical gas production operations in the
north east of Italy.
- In the United States, construction of Air Liquide’s largest
biomethane production plant in the world.
Decarbonizing the industry:
- Selection of the Air Liquide and EQIOM project by the
European Innovation Fund with the aim to transform the EQIOM
plant near Dunkirk, France, into one of the first carbon-neutral
cement plants in Europe.
- Memorandum of Understanding with Lhoist to
decarbonize their lime production unit located in Réty, in
the Hauts-de-France region, using Air Liquide’s proprietary
CryocapTM carbon capture technology.
- Selection by the European Innovation Fund of the Kairos@C
project, jointly developed by Air Liquide and BASF, with
the objective to develop the world’s largest cross-border
carbon capture and storage (CCS) value chain project around the
port of Antwerp.
- Memorandum of Understanding signed with Eni to
decarbonize hard-to-abate industries in the Mediterranean
Basin.
- Agreement signed with Sogestran to develop shipping
solutions for carbon management, as part of carbon capture and
storage projects.
Low-carbon hydrogen:
- Support of the French government to the Air Liquide
Normand’Hy project to produce renewable hydrogen on a
large scale. This project will have an initial capacity of 200 MW
and will contribute to the creation of a French and European
low-carbon hydrogen industry, as well as to the decarbonization of
the Normandy industrial basin.
- Creation of a joint venture with Siemens Energy dedicated to
the series production of industrial scale renewable hydrogen
electrolyzers in Europe. One of this joint venture’s first
projects will be the Air Liquide Normand’Hy electrolyzer
project.
- Memorandum of Understanding with CaetanoBus and Toyota Motor
Europe to provide integrated hydrogen mobility solutions
(development of infrastructure and fleets of light- and heavy-duty
vehicles).
- Memorandum of Understanding signed with Airbus, Incheon
Airport and Korean Air to study the use of hydrogen at
Incheon International Airport.
- Plan with Groupe ADP to create the first engineering
joint venture to accompany airports in their projects to
integrate hydrogen in their infrastructure.
- Creation of a joint venture with Lotte Chemical, a major
player in Korea, to develop the hydrogen supply chain for
mobility markets in South Korea.
Electronics & Industry:
- Within the context of long-term contracts with two
world leaders in semiconductors for the supply of ultra-high
purity industrial gases in Japan, Air Liquide has begun a
staged investment of more than 300 million euros in four
state-of-the-art production plants.
- Signature of long-term agreements to supply a semiconductor
manufacturing site in Arizona, United States. As part of this
agreement, Air Liquide will invest nearly 60 million US
dollars to build and operate onsite plants and systems.
- Long-term contract with EZZ Steel in Egypt, under which
Air Liquide Egypt will invest around 80 million US dollars
in building an Air Separation Unit (ASU). This ASU will reinforce
the Group’s leadership in the Ain Sokhna industrial basin.
- Increased presence in India with an investment of around
40 million euros in a new ASU dedicated to Industrial Merchant
activities, in the state of Uttar Pradesh in northern
India.
Group revenue totaled 14,207 million euros in the
1st half of 2022, a strong comparable growth of +7.7%. Sales
were up +7.5% on a comparable basis during the 2nd quarter of 2022
compared with the 2nd quarter of 2021. Group revenue as
published increased significantly by +31.0% during the
1st half, with a very high energy impact of +16.8% as well as
favorable currency (+5.8%) and significant scope (+0.7%)
impacts.
This performance was delivered in a challenging context of
exceptionally high energy prices, strong inflation, strain on
supply chains and the war in Ukraine. The Group benefited from a
solid business model and diversity of business reach in terms of
geographies, businesses, end-markets and customers which
ensured a resilient performance and allowed the Group to
take advantage of all growth opportunities. Its core
positioning in growth markets of the future (in particular the
energy transition, Semiconductors and Healthcare) reinforces these
attributes.
Gas & Services revenue amounted to 13,600 million
euros during the 1st half, representing an increase of
+7.2% on a comparable basis. Sales as published for
the 1st half of 2022 showed extremely strong growth of
+31.4%, with a very high energy impact at +17.6% as well as
positive currency (+5.9%) and significant scope (+0.7%)
impacts.
- Gas & Services revenue in the Americas reached
5,017 million euros in the 1st half of 2022, representing a
very strong increase of +9.2% on a comparable basis. Large
Industries was up +5.3%, driven by solid demand and the start-up of
new units. The marked increase in prices contributed significantly
to the high sales growth in Industrial Merchant (+11.6%).
Healthcare revenue was up +2.2%, led by proximity care in the
United States and Home Healthcare in Latin America, despite a
decline in medical oxygen sales for the treatment of covid-19.
Finally, all business segments within Electronics contributed to
the particularly dynamic growth (+8.2%).
- Revenue in Europe was up +6.4% on a comparable
basis during the 1st half of 2022 and reached 5,424 million
euros. This strong growth was contrasted across the business
lines in a context of exceptionally high energy prices and the war
in Ukraine. Growth accelerated in Industrial Merchant, driven by
record price increases, and reached a particularly high of +22.9%
in the 1st half, offsetting the -7.4% decline in Large Industries
sales. Despite a high basis of comparison due to the covid-19
pandemic in 2021, Healthcare sales were up +3.3%, driven by the
momentum in Home Healthcare.
- Sales in Asia-Pacific were up +5.5% on a
comparable basis in the 1st half of 2022 and totaled 2,746
million euros, driven by particularly dynamic growth in the
Electronics business (+15.8%). Covid-19 related lockdowns in China
during the 2nd quarter had an impact on demand in other business
lines: Large Industries sales were stable (-0.2%) in the 1st half,
whereas Industrial Merchant sales were up +2.5%, driven by the
acceleration in price increases during the half-year.
- Revenue in the Middle East and Africa totaled 413
million euros, representing a slight increase (+0.9%) on
a comparable basis with the 1st half of 2021. Volumes increased
sharply in South Africa with the integration of the 16 Sasol air
separation units whose sales were recognized as part of the
significant scope impact, and hence excluded from comparable
growth. Sales were stable over the half-year in Industrial
Merchant, with business line growth offset by two small
divestitures in the Middle East.
Large Industries sales were contrasted by region and
overall were down slightly (-1.4%) on a comparable basis
with the 1st half of 2021: sales enjoyed sustained growth in the
Americas, were stable in Asia, and were down in Europe. The
Industrial Merchant business posted strong revenue growth of
+12.7% in the 1st half, driven by the acceleration of
pricing over the half-year and by solid volumes.
Electronics sales growth momentum was particularly dynamic,
at +15.5%, with a strong contribution from all business
segments. In Healthcare, despite a decline in medical oxygen
volumes for the treatment of covid-19, revenue was up +2.3%
driven by the strong development in Home Healthcare, notably in
Europe, and in proximity care in the United States.
Consolidated revenue from Engineering & Construction
totaled 221 million euros in the 1st half of 2022,
representing strong comparable growth of +29.0%. Order
intake totaled 526 million euros, in line with the high
level recorded in the 1st half of 2021.
Global Markets & Technologies sales totaled 386
million euros in the 1st half, representing marked comparable
growth of +13.8%. The biogas business enjoyed strong
momentum, benefiting from the ramp-up of new production units in
Europe and the United States, the increase in sales prices relating
to the spike in energy price, and equipment sales in the United
States.
Efficiencies (1) amounted to 167 million
euros and represented a saving of 2.1% of the cost base. In a
context of high inflation unfavorable to procurement efficiencies,
the priority for the teams is to limit cost increases and transfer
them to sales prices.
Group Operating Income Recurring (OIR) reached 2,286
million euros in the 1st half of 2022, an increase of
+17.4% and of +9.2% on a comparable basis, which is
significantly higher than the comparable sales growth of +7.7%.
The operating margin (OIR to revenue ratio) stood at
16.1% as published, representing a -190 basis point decline
compared with the 1st half of 2021 due mainly to the sharp increase
in energy costs which are contractually passed through to Large
Industries customers. This therefore has a dilutive impact on the
published margin (without impacting operating income in absolute
value). Excluding the energy impact, the operating margin
improved very significantly by +50 basis points compared
with the 1st half of 2021. This performance integrates the dilutive
impact of strong inflation on costs other than energy costs and
which is transferred to sales prices.
The net profit (Group share) amounted to 1,305 million
euros in the 1st half of 2022, an increase of +5.3% as
published. Excluding the exceptional provision on the Group’s
industrial assets in Russia, which has no impact on cash, a
provision for risks in the Engineering & Construction business,
and an exceptional income from Air Liquide taking control of a
joint venture in Asia-Pacific, recurring net profit (Group
share)(2) reached 1,551 million euros. It increased by
+25.1% and +20.4% excluding the currency impact, which is
significantly higher than the comparable sales growth of +7.7% over
the half-year. Net earnings per share rose by +5.0%
compared with the 1st half of 2021, in line with the increase in
net profit (Group share). These stood at 2.50 euros per
share compared with 2.38 euros3 per share in the 1st half of
2021.
Cash flow from operating activities before changes in
net working capital amounted to 2,907 million euros
during the 1st half of 2022, representing a sharp increase of
+17.1% and +11.5% excluding the currency impact. This
corresponds to a high level of 20.5% of sales and 23.5%
excluding the energy impact, and represents a +60 basis
point improvement excluding the energy impact compared with the
1st half of 2021.
Gross industrial capital expenditure amounted to 1,574
million euros, an increase of +9.4% compared with the 1st half
of 2021 and of +4.7% excluding the currency impact. This
represented 12.7% of sales excluding the energy impact,
reflecting dynamic project development activity. Financial
investments stood at 54 million euros compared with 569
million euros for the 1st half of 2021, including approximately 480
million euros for the acquisition of 16 Sasol air separation units
in South Africa.
The net debt-to-equity ratio, adjusted for the seasonal
effect of the dividend payment, stood at 46.0%, down sharply
compared with 56.1% at the end of June 2021.
The return on capital employed after tax (ROCE) was 9.0%
for the 1st half of 2022. Recurring ROCE(4) stood at
9.7%, an increase of +70 basis points compared with
the 1st half of 2021.
In the 1st half of 2022, industrial and financial investment
decisions totaled 1,796 million euros. This compares to
1,429 million euros during the 1st half of 2021, excluding the
acquisition of Sasol’s Air Separation Units (ASUs) in South Africa
for approximately 480 million euros.
The investment backlog remained high at 3.0 billion
euros.
The additional contribution to revenue of unit start-ups
and ramp-ups totaled 213 million euros over the 1st half of
2022. In 2022, the additional contribution to revenue of
unit start-ups and ramp-ups is expected to be between 410 and
435 million euros.
The 12-month portfolio of investment opportunities stood
at 3.3 billion euros at the end of June 2022. Projects
related to the energy transition accounted for more than 40%
of the portfolio. These notably included projects for renewable
hydrogen production by water electrolysis, facilities for the
capture of CO2 emitted by the Group’s or its customers’ units, as
well as hydrogen mobility projects in Europe and Asia. The share of
the Electronics business in the portfolio of opportunities
increased and represented around 30%.
***
Air Liquide’s target to reduce its Scope 1 & 2 CO2
emissions by 2035 has been validated by the Science Based
Targets initiative (SBTi) as qualified and aligned with climate
science. The Group is the first in its industry to obtain
validation from the Science Based Targets Initiative. This
approval represents an important milestone towards the Group’s
ambition to reach carbon neutrality by 2050.
As previously announced, a new governance has been
implemented within Air Liquide. Since June 1, 2022, Benoît
Potier remained Chairman of the Board of Directors and
François Jackow, became Chief Executive Officer for the
Group.
The Air Liquide Board of Directors met on July 27, 2022. During
this meeting, the Board reviewed the condensed consolidated
financial statements for the first half ending June 30, 2022.
Limited review procedures were completed with respect to the
condensed consolidated interim financial statements, and an
unqualified review report is in the process of being issued by
the statutory auditors.
Table of Contents of the activity report
H1 2022 PERFORMANCE 8
Key Figures 8
Income Statement 9
Change in Net debt 19
INVESTMENT CYCLE 20
RISKS FACTORS 22
OUTLOOK 24
APPENDICES 25
Performance indicators 25
Calculation of performance indicators
(Semester) 26
Calculation of performance indicators
(Quarter) 29
2nd quarter 2022 revenue 29
Geographic and segment information 30
Consolidated income statement 30
Consolidated balance sheet 31
Consolidated cash flow statement 32
Sales, Operating Income Recurring and
investments key figures synthesis 34
H1 2022 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
(in millions of euros)
H1 2021
H1 2022
2022/2021 published
change
2022/2021 comparable change
(a)
Total Revenue
10,846
14,207
+31.0%
+7.7%
Of which Gas & Services
10,350
13,600
+31.4%
+7.2%
Operating Income Recurring (OIR)
1,948
2,286
+17.4%
+9.2%
Group OIR Margin
18.0%
16.1%
-190 bps
Variation excluding energy (b)
+50 bps
Other Non-Recurring Operating Income and
Expenses
(40)
(270)
Net Profit (Group Share)
1,239
1,305
+5.3%
Net Profit Recurring (Group Share) (c)
1,239
1,551
+25.1%
Variation Net Profit Recurring (Group
Share) excluding currency impact (b)
+20.4%
Earnings per Share (in euros)
2.38 (d)
2.50
+5.0%
Cash flow from operating activities before
changes in net working capital
2,483
2,907
+17.1%
Net Capital Expenditure (e)
1,913
1,547
Net Debt
€12.0 bn
€12.0 bn
Net Debt to Equity ratio (f)
56.1%
46.0%
Return on Capital Employed after tax -
ROCE
9.5%
9.0%
-50 bps
Recurring ROCE (g)
9.0%
9.7%
+70 bps
(a)
Change excluding the currency, energy
(natural gas and electricity) and significant scope impacts, see
reconciliation in appendix.
(b)
See reconciliation in appendix.
(c)
Excluding exceptional and significant
transactions that have no impact on the operating income recurring,
see reconciliation in appendix.
(d)
Adjusted following the free share
attribution in June 2022.
(e)
Including transactions with minority
shareholders.
(f)
Adjusted to spread the dividend payment in
the 1st half out over the full year.
(g)
Based on the recurring net profit, see
reconciliation in appendix.
Income Statement
REVENUE
Revenue
(in millions of euros)
H1 2021
H1 2022
2022/2021 published
change
2022/2021 comparable
change
Gas & Services
10,350
13,600
+31.4%
+7.2%
Engineering & Construction
169
221
+31.1%
+29.0%
Global Markets & Technologies
327
386
+17.9%
+13.8%
TOTAL REVENUE
10,846
14,207
+31.0%
+7.7%
Revenue by quarter
(in millions of euros)
Q1 2022
Q2 2022
Gas & Services
6,590
7,010
Engineering & Construction
108
113
Global Markets & Technologies
189
197
TOTAL REVENUE
6,887
7,320
2022/2021 Group published
change
+29.1%
+32.8%
2022/2021 Group comparable
change
+7.9%
+7.5%
2022/2021 Gas & Services comparable
change
+7.1%
+7.3%
Group
Group revenue totaled 14,207 million euros in the
1st half of 2022, a strong comparable growth of +7.7%. Sales
were up +7.5% during the 2nd quarter of 2022 compared with the 2nd
quarter of 2021.
This performance was delivered in a challenging context of
exceptionally high energy prices, strong inflation, strain on
supply chains and the war in Ukraine. The Group benefited from a
solid business model and diversity of business reach in terms of
geographies, businesses, end-markets and customers which
ensured a resilient performance and allowed the Group to
take advantage of all growth opportunities. Its core
positioning in growth markets of the future (in particular the
energy transition, Semiconductors and Healthcare) reinforces these
attributes.
Engineering & Construction sales enjoyed strong
growth of +29.0% compared with the 1st half of 2021, which
reflects the increase in order intake in recent quarters. Global
Markets & Technologies revenue was up +13.8%, mainly
driven by strong momentum in the biogas business.
Group revenue as published increased significantly by
+31.0% during the 1st half, with a very high energy impact
of +16.8% as well as favorable currency (+5.8%) and significant
scope (+0.7%) impacts.
Gas & Services
Gas & Services revenue amounted to 13,600 million
euros during the 1st half, representing an increase of
+7.2% on a comparable basis. Large Industries sales
were contrasted by region and overall were down slightly
(-1.4%) compared with the 1st half of 2021: sales enjoyed
sustained growth in the Americas, were stable in Asia, and were
down in Europe. The Industrial Merchant business posted
strong revenue growth of +12.7% in the 1st half, driven by
the acceleration of pricing over the half-year and by
solid volumes. Electronics sales growth momentum was
particularly dynamic, at +15.5%, with a strong contribution
from all business segments. In Healthcare, despite a decline
in medical oxygen volumes for the treatment of covid-19, revenue
was up +2.3% driven by the strong development in Home
Healthcare, notably in Europe, and in proximity care in the United
States. Sales as published for the 1st half of 2022 showed
extremely strong growth of +31.4%, with a very high energy
impact at +17.6% as well as positive currency (+5.9%) and
significant scope (+0.7%) impacts.
Revenue by geography and business
line
(in millions of euros)
H1 2021
H1 2022
2022/2021 published
change
2022/2021 comparable
change
Americas
4,059
5,017
+23.6%
+9.2%
Europe
3,657
5,424
+48.3%
+6.4%
Asia-Pacific
2,326
2,746
+18.1%
+5.5%
Middle East & Africa
308
413
+34.0%
+0.9%
GAS & SERVICES REVENUE
10,350
13,600
+31.4%
+7.2%
Large Industries
2,916
4,940
+69.4%
-1.4%
Industrial Merchant
4,595
5,510
+19.9%
+12.7%
Healthcare
1,835
1,925
+4.9%
+2.3%
Electronics
1,004
1,225
+21.9%
+15.5%
Americas
Gas & Services revenue in the Americas reached 5,017
million euros in the 1st half of 2022, representing a very
strong increase of +9.2%. Large Industries was up +5.3%,
driven by solid demand and the start-up of new units. The marked
increase in prices contributed significantly to the high sales
growth in Industrial Merchant (+11.6%). Healthcare revenue was up
+2.2%, led by proximity care in the United States and Home
Healthcare in Latin America, despite a decline in medical oxygen
sales for the treatment of covid-19. Finally, all business segments
within Electronics contributed to the particularly dynamic growth
(+8.2%).
Americas Gas & Services H1 2022 Revenue
- Large Industries revenue increased by +5.3%
during the 1st half. Air gas volumes climbed markedly on the United
States Gulf Coast, driven by solid demand from Chemicals and Steel
customers and from the start-up of two ASUs during the 2nd quarter.
Benefiting from the ramp-up of units, there was strong momentum in
hydrogen sales in Latin America which offset the impact of several
maintenance turnarounds in North America. Cogeneration unit
electricity sales were down in the United States during the 2nd
quarter, compared with very high sales in 2021.
- In Industrial Merchant, the strong sales growth of
+11.6% in the 1st half was driven by the acceleration in
pricing which stood at +11.4%. Volumes were stable,
with the increase in volumes of liquified gases, cylinders and
hardgoods offset by the decline of helium volumes. Sales were up
across all markets, in particular in Fabrication and in the Energy
and Materials sectors.
- Healthcare revenue was up +2.2% in the 1st half
of 2022, despite the major decline in medical oxygen volumes for
the treatment of covid-19 compared with 2021. Sales in Medical
gases rose sharply in the United States, supported by strong
momentum in proximity care and an acceleration of pricing. In Latin
America, Home Healthcare sales growth partially offset medical gas
volumes that were weaker than in 2021, at the peak of the
pandemic.
- Electronics posted sales growth of +8.2%,
supported by the momentum across all business segments. The ramp-up
of several production plants contributed to the strong increase in
carrier gases sales. High Equipment and Installation sales also
contributed to significant growth for the business in the United
States.
Americas
- Air Liquide announces a long term
agreement to supply ultra high purity hydrogen, helium, and
carbon dioxide to one of the world’s largest semiconductor
manufacturers. The Group plans to invest nearly 50 million
euros to build, own and operate onsite plants and systems at a
new manufacturing site in Phoenix, Arizona, in support of this new
agreement. Operations and supply are expected to start in the
second half of 2022.
- Air Liquide officially opened its largest
liquid hydrogen production and logistics infrastructure
facility in North Las Vegas, Nevada. The facility aims
to supply the growing needs for hydrogen mobility, but will
also allow to provide hydrogen to a wide array of industries.
Europe
Revenue in Europe was up +6.4% during the 1st half of
2022 and reached 5,424 million euros. This strong growth was
contrasted across business lines in a context of exceptionally high
energy prices and the war in Ukraine. Growth accelerated in
Industrial Merchant, driven by record price increases, and reached
a particularly high of +22.9% in the 1st half, offsetting the -7.4%
decline in Large Industries sales. Despite a high basis of
comparison due to the covid-19 pandemic in 2021, Healthcare sales
were up +3.3%, driven by the momentum in Home Healthcare.
Europe Gas & Services H1 2022 Revenue
- Impacted by the war in Ukraine and a strong and steep increase
of energy prices, Large Industries revenue was down
-7.4% in the 1st half. The beginning of the slowdown seen
toward the end of the 1st quarter, notably in Steel, continued
during the 2nd quarter across all sectors. Volumes were affected by
weaker demand and numerous maintenance turnarounds. Moreover, in
the 2nd quarter, certain refineries used lighter crude oils which
require lower amounts of hydrogen.
- The Industrial Merchant business line saw an
exceptionally high level of sales growth of +22.9%, driven
by a record pricing of +20.9%. Proactive price
campaigns have fully demonstrated their effectiveness in an
inflationary context. Volumes, which were solid in the 1st quarter,
continued to grow slightly during the 2nd quarter, despite
softening bulk volumes. Sales increased across all markets,
particularly in the Food, Fabrication, Materials and Energy
sectors.
- Despite a high basis of comparison in 2021, Healthcare
revenue was up +3.3% in the 1st half. Oxygen and medical
equipment sales were down compared to the record-high for the
treatment of covid-19 in the 1st half of 2021. Growth was
nonetheless strong in Home Healthcare, particularly for diabetes
treatment. The business also benefited from the contribution from
an acquisition completed in Poland during the 4th quarter of 2021.
Finally, specialty ingredients sales actively contributed to the
growth in business.
Europe
- Air Liquide and Lhoist have signed a Memorandum of
Understanding (MoU) with the aim to decarbonize Lhoist’s lime
production plant located in Réty, in the Hauts-de-France
region, using Air Liquide’s innovative and proprietary CryocapTM
carbon capture technology. In this context, Air Liquide and
Lhoist obtained funding from the European Innovation Fund
for large scale projects. This partnership is a new step in the
creation of a low-carbon industrial ecosystem in the broader
Dunkirk area.
- Air Liquide has signed a ten-year contract with Shell
Energy Europe Limited (SEEL) for the purchase of renewable
energy to power industrial and medical gas production
operations in the North East of Italy. The solar
photovoltaic installed capacity necessary to deliver this energy is
34 MW.
- Air Liquide has signed with Vattenfall in the
Netherlands its biggest long-term Power Purchase
Agreement (PPA) to date with approximately 115 MW of new
offshore wind electricity. This PPA comes in addition to a previous
agreement announced with Vattenfall in March 2021, expanding the
long-term partnership between the two groups. It reaffirms Air
Liquide's commitment to lead the way in decarbonizing the European
industry while lowering its own carbon footprint, in line with
its Sustainable Development Objectives.
- The Elygator electrolyzer project, which has a similar
size as the Normand’Hy project (200 MW), has been selected
for funding by the European Innovation Fund. This unit will
be located in Terneuzen and will produce large quantities of
renewable hydrogen, hence supporting the decarbonization of
the industrial and the mobility markets in the
Netherlands and in Belgium. The Elygator project is a
new landmark in the Group’s objective to invest in 3 GW
electrolysis capacity by 2030.
Asia-Pacific
Sales in Asia Pacific were up +5.5% in the 1st half of
2022 and totaled 2,746 million euros, driven by particularly
dynamic growth in the Electronics business (+15.8%). Covid-19
related lockdowns in China during the 2nd quarter had an impact on
demand in other business lines: Large Industries sales were stable
(-0.2%) in the 1st half, whereas Industrial Merchant sales were up
+2.5%, driven by the acceleration in price increases during the
half-year.
Asia-Pacific Gas & Services H1 2022 Revenue
- Large Industries sales, improving sequentially, were
stable (-0.2%) in the 1st half. Growth slowed in China, in
particular due to residual energy control measures during the 1st
quarter, and to covid-related lockdowns during the 2nd quarter.
Business was weak in the rest of Asia.
- Industrial Merchant revenue was up +2.5%. The
pricing impact (+5.0% in the 1st half) increased
across the region and reached +6.9% in the 2nd quarter. In
China, following a marked increase in sales during the 1st quarter
(+9%), notably driven by the development of packaged gases and the
contribution of small on-site gas generator start-ups, growth
slowed considerably during the 2nd quarter due to covid-19 related
lockdowns. The situation was contrasted in the rest of Asia, with
sales down in Japan but up sharply in Singapore and enjoying solid
growth in Australia. Sales improved across the major business
sectors, particularly in the Food and Technology markets, whereas
sales to craftsmen were weaker.
- Electronics revenue momentum was strong at
+15.8%, with all business segments posting double-digit
growth during the 1st half. Carrier gases benefited from the
contribution from two start-ups in China and the ramp-up of several
production plants in Korea, Singapore and Taiwan. Advanced
Materials sales were high, in particular in Singapore and China.
Specialty Materials sales were boosted by the increase in the price
of rare gases. Finally, Equipment and Installations also
contributed significantly to growth.
Asia-Pacific
- Two major Semiconductor market leaders have awarded Air Liquide
long-term contracts for the supply of ultra-high purity
industrial gases in Japan. To fulfill these contracts, Air
Liquide has begun a staged investment of more than 300 million
euros in four state-of-the-art gas plants in key
Electronics basins to produce nitrogen and other high purity
gases.
- Air Liquide Korea and Lotte Chemical entered a joint
venture to scale-up the hydrogen supply chain for
mobility markets in South Korea. The companies will
co-invest through the joint venture in a new generation of large
scale hydrogen filling centers in Daesan and Ulsan. They also
expect multiple synergies and envision the development of
several opportunities to foster the rise of the hydrogen economy in
Korea.
- Shanghai Chemical Industry Park Industrial Gases Co., Ltd
(SCIPIG), a subsidiary of Air Liquide, will invest more than
200 million euros to build two hydrogen production
units and related infrastructure in Shanghai Chemical Industry
Park (SCIP). These units will bring significant environmental
benefits, as they are designed to replace current supply from a
third party coal-based gasification unit, will be equipped
with CO2 capture and recycling technology and will be connected
to SCIPIG existing local network. These two units will come in
addition to two other hydrogen units and four air separation units
that SCIPIG already operates in the industrial park.
Middle East and Africa
Revenue in the Middle East and Africa totaled 413 million
euros, representing a slight increase (+0.9%) compared
to the 1st half of 2021. Large Industries sales were up for the
half-year: down in the 1st quarter, sales increased markedly during
the 2nd quarter, driven by high oxygen volumes for the Steel
segment in Egypt and strong hydrogen demand from customers in the
Yanbu basin in Saudi Arabia. Volumes increased sharply in South
Africa with the integration of the 16 Sasol air separation
units whose acquisition was finalized at the end of the 1st
half of 2021: sales of approximatively 72 million euros in
the 1st half-year were recognized as part of the significant
scope impact (and hence excluded from comparable growth). Sales
were stable over the half-year in Industrial Merchant, with the
business line growth offset by two small divestitures in the Middle
East. In Healthcare, revenue was down due to lower medical gas
volumes for the treatment of covid-19. Sales in the Home Healthcare
business grew in Saudi Arabia, particularly in diabetes
treatment.
Middle East and Africa
- Air Liquide and EZZ Steel, one of the leading
steel producers in the Middle East and Africa, have signed a
new long term agreement for the supply of industrial gases
to EZZ’s new plant in Ain Sokhna, East of Cairo, Egypt. Air
Liquide Egypt will invest around 80 million US dollars in
building an Air Separation Unit (ASU) to supply EZZ needs
throughout the duration of the contract, as well as other customer
needs in the basin.
Engineering & Construction
Consolidated revenue from Engineering & Construction totaled
221 million euros in the 1st half of 2022, representing
strong growth of +29.0% and reflecting the increase in order
intake from third-party customers in recent quarters.
Order intake totaled 526 million euros, in line with the
high level recorded in the 1st half of 2021. Orders for the Group
mainly included projects in Asia, notably nitrogen generators for
the Electronics business and air separation units for Large
Industries.
Engineering & Construction
- Air Liquide and Siemens Energy announced the creation of
a joint venture dedicated to the series production of
industrial scale renewable hydrogen electrolyzers in Europe.
With two of the global leading companies in their field
combining their expertise, this Franco-German partnership will
enable the emergence of a sustainable hydrogen economy in Europe
and foster a European ecosystem for electrolysis and hydrogen
technology. Production is expected to begin in the second half
of 2023 and ramp-up to an annual production capacity of 3 GW
by 2025.
Global Markets & Technologies
Global Markets & Technologies sales totaled 386 million
euros in the 1st half, representing marked growth of
+13.8%. The biogas business enjoyed strong momentum,
benefiting from the ramp-up of new production units in Europe and
the United States, the increase in sales prices relating to the
spike in energy price, and equipment sales in the United
States.
Order intake for Group projects and third-party customers
reached 403 million euros, up compared to 2021. This notably
included 30 Turbo-Brayton LNG reliquefaction units, biogas
processing equipment, hydrogen refueling stations and equipment for
the electronics industry.
Global Markets & Technologies
- Air Liquide invested and will operate its first biomethane
production unit in China by the end of 2022. Located in Huai’an
City, in the Jiangsu Province, the unit will have a production
capacity of 75 GWh per year. This project demonstrates a
circular economy and low-carbon approach, in line with the
Group’s Sustainable Development Objectives and strategic plan
ADVANCE.
- Air Liquide, CaetanoBus and Toyota Motor Europe have
signed a Memorandum of Understanding with the aim of developing
integrated hydrogen solutions. This will include
infrastructure development and vehicle fleets, to
accelerate the expansion of hydrogen mobility for both light and
heavy-duty vehicles. The partnership reflects the shared ambition
of the three partners to contribute to decarbonizing
transport and accelerate the development of local hydrogen
ecosystems for multiple mobility applications.
- With the ambition of creating the first engineering joint
venture dedicated to accompanying airports in their project to
integrate hydrogen in their infrastructure, Air Liquide
and Groupe ADP are strengthening their collaboration. This
announcement follows a memorandum of understanding signed in 2021
to carry out feasibility studies to accompany the arrival of
hydrogen-powered aircraft. This partnership project
demonstrates the Groups’ shared ambition to act now to pave the way
for decarbonized air transport worldwide.
OPERATING INCOME RECURRING
Operating income recurring before depreciation and
amortization totaled 3,475 million euros, an increase of
+16.0% and +9.7% excluding the currency impact compared with
the 1st half of 2021.
Purchases were up markedly by +53.4% excluding
currency impact, mainly due to the exceptionally strong and
rapid increase (+95% excluding the currency impact) of energy
costs, which are contractually passed through to Large Industries
customers. In a context of high inflation, personnel costs
were up +6.5% excluding the currency impact. Other
operating expenses increased by +9.4% excluding currency
impact and notably included a marked increase in transport and
maintenance costs. Depreciation and amortization reached
1,189 million euros, representing an increase of +7.1%
excluding currency impact, which reflected the impact of the
start-up of new units, the integration of the 16 air separation
units acquired from Sasol in June 2021, and Air Liquide taking
control of a joint venture in Asia-Pacific.
Group Operating Income Recurring (OIR) reached 2,286
million euros in the 1st half of 2022, an increase of
+17.4% and of +9.2% on a comparable basis, which is
significantly higher than the comparable sales growth of +7.7%. The
operating margin (OIR to revenue ratio) stood at
16.1% as published, representing a -190 basis point decline
compared with the 1st half of 2021 due mainly to the sharp increase
in energy costs which are contractually passed through to Large
Industries customers. This therefore has a dilutive impact on the
published margin (without impacting the operating income in
absolute value). Excluding the energy impact, the operating
margin improved very significantly by +50 basis points compared
with the 1st half of 2021. This performance integrates the dilutive
impact of strong inflation on costs other than energy costs and
which is transferred to sales prices. This +50 basis points
improvement therefore particularly reflected the Group’s ability to
rapidly transfer the exceptionally strong and brutal increase in
energy costs and inflation in general to sales prices.
Efficiencies(5) amounted to 167 million
euros and represented a saving of 2.1% of the cost base. In a
context of high inflation unfavorable to procurement efficiencies,
the priority for the teams is to limit cost increases and transfer
them to sales prices. Industrial efficiencies contributed
more than 50% of total efficiencies and included energy efficiency
projects in Large Industries and supply chain optimization projects
in Industrial Merchant. The Group’s digital transformation
continued: in Large Industries with the connection of new units to
remote operation centers (Smart Innovative Operations, SIO), in
Industrial Merchant with the acceleration of tools implementation
to optimize delivery routes (Integrated Bulk Operations, IBO) and
in Healthcare with the deployment of remote patient monitoring
platforms. The continued implementation of shared service centers
and the global continuous improvement program contributed to
efficiencies.
Portfolio and pricing management also supported margin
improvement.
Gas & Services
Gas & Services H1 2022 Operating Income Recurring
Gas & Services operating income recurring totaled
2,404 million euros, up +16.3% as published compared
with the 1st half of 2021, and up +8.8% on a comparable
basis. The operating margin as published stood at
17.7%, a significant improvement of +50 basis points
excluding the energy impact compared with the 1st half of 2021.
The operating margin, as published, was down compared with the 1st
half of 2021 due to the very strong increase in energy costs, which
are contractually passed through to Large Industries customers and
thus have a dilutive impact.
Industrial Merchant prices were up +12.6% in the
1st half, demonstrating the Group’s ability to pass through cost
increases. Prices were also up in Large Industries, Electronics and
in all regions in Healthcare.
Gas & Services Operating margin
(a)
H1 2021
H1 2022
H1 2022, excluding energy
impact
2022/2021 excluding energy
impact
Americas
19.7%
19.3%
19.9%
+20 bps
Europe
18.9%
14.2%
19.8%
+90 bps
Asia-Pacific
22.1%
20.7%
21.9%
-20 bps
Middle East & Africa
19.3%
23.3%
24.0%
+470 bps
TOTAL
20.0%
17.7%
20.5%
+50 bps
(a)
Operating income recurring / revenue as
published
Operating income recurring in the Americas reached 969
million euros over the 1st half of 2022, a sharp increase of
+20.9% as published. Excluding the energy impact, the
operating margin stood at 19.9%, representing an increase of
+20 basis points compared with the 1st half of 2021. This
performance was mainly due to high efficiencies, in particular in
Industrial Merchant, and by a favorable mix effect in Large
Industries due to the strong growth in air gases. The contribution
from the Electronics business was also positive.
Operating income recurring in Europe reached 771
million euros, an increase as published of +11.4%
compared with the 1st half of 2021. Excluding the energy impact,
the operating margin stood at 19.8%, representing a very
sharp increase of +90 basis points compared with the 1st
half of 2021. This performance was driven by a positive mix effect
in Large Industries, due to favorable air gas sales compared to
hydrogen sales, and the solid contribution of efficiencies. Active
business portfolio management, which includes in particular the
divestiture of activities in Greece in 2021, contributed to improve
performance.
Operating income recurring in Asia Pacific stood at
567 million euros, an increase as published of
+10.5%. The operating margin excluding the energy impact
reached 21.9%, representing a decrease of -20 basis
points compared with the 1st half of 2021. The slowdown in the
Industrial Merchant business in China during the 2nd quarter due to
lockdowns had an unfavorable impact on the margin, which canceled
out the small positive contributions from Large Industries and
Electronics, which were mainly driven by efficiencies.
Operating income recurring for the Middle East and Africa
region amounted to 96 million euros, representing a marked
increase of +61.7% as published compared with the 1st half
of 2021. Excluding the energy impact, the operating margin stood at
24.0%, representing a significant increase of +470 basis
points compared with the 1st half of 2021. This performance was
mainly driven by the integration of Sasol’s 16 air separation
units. The improvement was also due to efficiencies generated
across all business lines.
Engineering & Construction
Engineering & Construction operating income recurring
stood at 22 million euros for the 1st half of 2022,
representing 10.1% of sales.
Global Markets & Technologies
Operating income recurring for Global Markets &
Technologies stood at 50 million euros in the 1st half
of 2022, with an operating margin at 12.9%, an increase of
+70 basis points compared with the 1st half of 2021.
Research & Development and Corporate costs
Research & Development expenses and Corporate costs totaled
190 million euros.
NET PROFIT
Other operating income and expenses showed a net balance
of -270 million euros. Other non-recurring operating
expenses totaled 475 million euros and included a 404 million euro
exceptional provision on the Group’s assets in Russia, with no
impact on cash, as well as costs for the unwinding of certain
hedging positions and mothballing of some projects also in Russia
in the amount of 15 million euros. Other non-recurring operating
expenses also included, for around 47 million euros, a provision
for risks in Engineering & Construction, as well as
restructuring costs. Other non-recurring operating income stood at
206 million euros related to Air Liquide taking control of a joint
venture in Asia-Pacific during the 1st half, revalued at fair
market value.
The financial result was -180 million euros
compared with -188 million euros in the 1st half of 2021. This
included a cost of net debt of -145 million euros, which
represented an increase of +2.0% excluding the currency impact. The
average cost of net debt, at 3.0%, was just slightly higher than in
the 1st half of 2021 (2.9%), mainly due to the increase in external
debt relating to the acquisition of Sasol’s air separation units in
South Africa.
Income tax expense was 459 million euros. The
effective tax rate was 25.0%, up very slightly from 24.7% in
the 1st half of 2021.
The share of profit of associates amounted to 1
million euros. The share of minority interests in net
profit totaled 73 million euros, up +35.3% mainly due to
Air Liquide taking control in January 2022 of a joint venture in
Asia-Pacific.
The net profit (Group share) amounted to 1,305 million
euros in the 1st half of 2022, an increase of +5.3% as
published. Excluding the exceptional provision on the Group’s
industrial assets in Russia, which has no impact on cash, a
provision for risks in the Engineering & Construction business,
and an exceptional income from Air Liquide taking control of a
joint venture in Asia-Pacific, recurring net profit (Group
share)(6) reached 1,551 million euros. It increased by
+25.1% and +20.4% excluding the currency impact, which is
significantly higher than the comparable sales growth of +7.7% over
the half-year.
Net earnings per share rose by +5.0% compared with
the 1st half of 2021, in line with the increase in net profit
(Group share). These stood at 2.50 euros per share compared
with 2.38 euros per share in the 1st half of 2021. Net earnings per
share for previous fiscal years have been restated for the free
share attribution carried out in June 2022. The average number of
outstanding shares used for the calculation of net earnings per
share as of June 30, 2022 was 522,144,843.
Change in the number of shares
H1 2021
H1 2022
Average number of outstanding shares
520,533,968 (a)
522,144,843
Number of shares as of December 31,
2021
475,291,037
Options exercised during the year, prior
to the free share attribution
179,795
Cancellation of treasury shares
0
Free shares issued
48,905,499
Option exercised during the year, after
the free share attribution
21,933
Number of shares as of June 30, 2022
524,398,264
(a)
Adjusted following the free share
attribution in June 2022.
Change in Net debt
Cash flow from operating activities before changes in
net working capital amounted to 2,907 million euros
during the 1st half of 2022, representing a sharp increase of
+17.1% and +11.5% excluding the currency impact. This
corresponds to a high level of 20.5% of sales and 23.5%
excluding the energy impact, and represents a +60 basis
point improvement excluding the energy impact compared with the
1st half of 2021.
Working capital requirement (WCR) was up +635 million
euros compared with December 31, 2021 due to the increase of
stocks reflecting inflation and the increase of accounts
receivables (the strong increase of energy costs being passed
through to Large Industries customers). The WCR excluding taxes to
sales ratio was 2.6% compared with 3.7% at June 30, 2021. Net
cash flow from operating activities after changes in working
capital requirement amounted to 2,241 million euros, an
increase of +2.3% compared with the 1st half of 2021.
Gross capital expenditure totaled 1,628 million
euros. Gross industrial capital expenditure amounted to
1,574 million euros, an increase of +9.4% compared with the
1st half of 2021 and of +4.7% excluding the currency impact. This
represented 12.7% of sales excluding the energy impact,
reflecting dynamic project development activity. Financial
investments stood at 54 million euros compared with 569
million euros for the 1st half of 2021, including approximately 480
million euros for the acquisition of 16 Sasol air separation units
in South Africa. Proceeds from the sale of fixed assets and
businesses were 68 million euros, notably including the
divestiture of two small businesses in the Middle East. This
reflects the Group’s active business portfolio management. Net
capital expenditure(7) totaled 1,547 million
euros.
Net debt at June 30, 2022 reached 12,010 million
euros, stable compared with 12,013 million euros at June 30,
2021 and an increase of 1,562 million euros compared with December
31, 2021 following the payment of more than 1.4 billion euros in
dividends in May and more than 1.5 billion euros in capital
expenditure in the 1st half. The net debt-to-equity ratio,
adjusted for the seasonal effect of the dividend payment, stood at
46.0%, down sharply compared with 56.1% at the end of June
2021.
The return on capital employed after tax (ROCE) was 9.0%
for the 1st half of 2022. Recurring ROCE(8) stood at
9.7%, an increase of +70 basis points compared with
the 1st half of 2021.
INVESTMENT CYCLE
INVESTMENT DECISIONS AND INVESTMENT BACKLOG
In the 1st half of 2022, industrial and financial investment
decisions totaled 1,796 million euros. This compares to
1,429 million euros during the 1st half of 2021, excluding the
acquisition of Sasol’s Air Separation Units (ASUs) in South Africa
for approximately 480 million euros.
Industrial investment decisions reached 1,738 million
euros in the 1st half of 2022, up sharply compared to 1,349
million euros in the 1st half of 2021. In addition to investments
decided during the 1st quarter in Asia, the Americas and Europe,
new contracts were signed in Electronics in China and
Singapore during the 2nd quarter. Following a long-term contract
signature with a customer within the Electronics industry and the
mutualization of Industrial Merchant and Healthcare customers
needs, a new ASU will allow to develop significantly the liquefied
gas production capacity in the Guangdong, second-largest
Industrial Merchant market in China. In Large
Industries, a new investment in Germany will connect the steel
mill of a customer to the local hydrogen network. This will allow
the second phase of a pilot project aimed at injecting hydrogen
into a blast furnace to reduce CO2 emissions. Investment decisions
during the 2nd quarter also included, in Healthcare, a new
specialty ingredients facility in France. Moreover, in the 1st half
of 2022, 10% of industrial decisions contributed to
efficiencies programs.
Financial investment decisions totaled 57 million
euros in the 1st half of 2022. These included several bolt-on
acquisitions in Industrial Merchant in the United States,
China and the Netherlands, which will strengthen our local presence
and improve the efficiency of our business.
The investment backlog remained high at 3.0 billion
euros. Despite a significant number of new projects being
signed during the 2nd quarter, the investment backlog was down
compared with the 1st quarter, due to the start-up of several major
projects in the United States and the exit of projects in Russia
that were decided on in 2020 and 2021 for around 160 million euros.
Projects in Asia for Semiconductor, Chemicals and Steel
customers, represented more than half of the investment backlog.
These investments should lead to a future contribution to annual
sales of approximately 1.1 billion euros per year when fully
ramped up.
START-UPS
Several major units started up during the 1st half of 2022.
These notably included large-capacity air separation units to
supply Large Industries customers in Texas, and a major
hydrogen production and liquefaction unit for the hydrogen mobility
market in California. Several carrier gases and advanced materials
production units for Electronics customers in Asia also
started up during the 1st half of 2022. Moreover, in the
GM&T business, a biogas production unit in the United
States and a refueling station in France to develop hydrogen
mobility ahead of the 2024 Olympic Games were commissioned.
The additional contribution to revenue of unit start-ups
and ramp-ups totaled 213 million euros over the 1st half of
2022. This included a contribution of 72 million euros from Sasol’s
ASUs in South Africa, which were acquired in 2021 and reported in
the significant scope impact on sales.
In 2022, the additional contribution to revenue of unit
start-ups and ramp-ups is expected to be between 410 and 435
million euros. This includes the contribution from Sasol’s air
separation units of around 135 million euros, reported in the
significant scope impact, and the contribution from the ramp-up of
units in Russia for around 10 million euros during the 2nd half
(under a continued operations scenario for the 2nd half).
INVESTMENT OPPORTUNITIES
The 12-month portfolio of investment opportunities stood
at 3.3 billion euros at the end of June 2022.
Projects related to the energy transition accounted for
more than 40% of the portfolio. These notably included projects for
renewable hydrogen production by water electrolysis, facilities for
the capture of CO2 emitted by the Group’s or its customers’ units,
as well as hydrogen mobility projects in Europe and Asia. The share
of the Electronics business in the portfolio of
opportunities increased and represented around 30%.
Europe remained the portfolio of opportunities’ leading
region with numerous energy transition projects, in particular in
Large Industries. It is followed by Asia, where the majority
of projects for Electronics customers are being carried out. In the
Americas, the portfolio also included several Electronics
projects, in addition to the investment opportunities in Large
Industries and Biogas.
RISK FACTORS
The current military conflict between Russia and Ukraine
increases certain risks or categories of risk specific to the Group
described on pages 75 to 89 of the 2021 Universal Registration
Document. Before the beginning of the conflict, Air Liquide’s
presence in Ukraine was limited to a sales representation and
engineering services for the Engineering & Construction
business. Revenue generated by the Group in Russia in 2021
represented less than 1% of the Group’s consolidated revenue, and
the net value of Group assets located in Russia was less than 2% of
the Group’s total net assets at December 31, 2021.
The Group is actively reviewing all options as the situation
evolves. Air Liquide is in a complex position as it provides
medical oxygen to hospitals, in addition to its industrial
activity.
The Group has applied management measures that are adapted to
each business, including, in particular:
- Human resource management risks: In Ukraine, despite
activity being at a standstill, the Group has reorganized the
workload of its employees to focus on projects outside of the
country thanks to the use of digital tools. In Ukraine and Russia,
external telephone support helplines have been set up to provide
psychological support to any employee who requires it. Several
humanitarian initiatives have been launched and/or supported by the
Group, notably thanks to the commitment of employees and of the Air
Liquide Foundation.
- Industrial investment-related risks: To date, the
Group’s global operations have remained relatively unaffected by
the conflict between Ukraine and Russia. Air Liquide is strictly
applying international sanctions. In this regard, the Group has
suspended all new foreign investment decisions in Russia. The
financial impacts are described in note 1 in the appendix of the
Condensed Consolidated Financial Statements as of June 30,
2022.
- Supply-related risks: Electricity and natural gas are
the main raw materials at the production units. These two energy
sources have been affected by an unprecedented increase in their
prices and strong volatility. Main customers contracts are indexed
on the energy price, which considerably limits the impact on the
Group. Nonetheless, the consequences of the war in Ukraine expose
the European entities (in particular those in Germany, the
Netherlands and Belgium) to a risk of natural gas curtailment. Air
Liquide’s teams are continuously monitoring the situation (storage
levels, financial stability of its suppliers, potential impact for
its customers, raw material alternatives (naphtha), etc.). For the
moment, Air Liquide has limited knowledge of the contingency plans
that various governments may put in place (priority sectors,
voluntary reduction in consumption by certain users, etc.). In
anticipation of a potential interruption of gas supplies, Air
Liquide is implementing action plans in collaboration with its
suppliers and customers. Moreover, certain customers may be forced
to shut down their activities due to a shortage of energy for their
plants and processes. The current conflict has also had an impact
on the availability of certain molecules (such as rare gases).
Where possible, the Group has reorganized its logistic flows to
supply its customers using alternative sources.
- Digital risks: in view of the current context of the
conflict in Ukraine, which is prone to cyber attacks, the Group has
stepped up preventive measures such as penetration testing on
Industrial Management Systems, raising awareness among the teams of
the risk of phishing, etc.
- Customer risks: Customers are systematically subject to
verifications relating to applicable sanctions and analyses are
carried out on a case-by-case basis. Supply to medical customers
was ensured in all cases.
- Regulatory and legal risks: In response to the conflict
in Ukraine, sanctions have been introduced by the United States,
Europe, the United Kingdom and Canada, among others, against Russia
and Belarus. The latter have retaliated with countermeasures.
Specialist teams within the Group monitor these developments. They
provide regular updates to the operating entities and support in
verifying compliance with the applicable laws. The Group takes
advice from external consultants and seeks validation from the
French authorities where necessary.
Moreover, the Group moved quickly to set up a crisis management
unit. As part of the Group’s crisis management mechanism,
operational business continuity plans were activated.
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 2021 Universal Registration Document.
Moreover, the covid-19 public health crisis, which is not
specific to the Group, is still ongoing. The Group has maintained
its action plan to protect its teams and assets, while providing
the best possible service to its customers. The Group has
capitalized on the transfer of experience across geographies. In
recent months, due diligence and crisis management measures
relating to covid-19 have been particularly applied in Asia.
Other risks, which are unknown at the date of this document, may
nonetheless occur and have a negative effect on the Group’s
business.
OUTLOOK
The Group delivered a very strong performance
during the 1st half of 2022. This is even more remarkable
considering the particularly complex macroeconomic and geopolitical
context. Revenue reached 14.2 billion euros, an increase of
+7.7% on a comparable basis. As published, revenue was up +31%,
reflecting the sharp increase in energy prices in particular.
Growth was achieved across all activities: Gas &
Services, which represents 96% of revenue, Engineering &
Construction and Global Markets & Technologies.
In Gas & Services, all geographies improved, driven
mainly by Industrial Merchant and Electronics, which
enjoyed strong growth particularly in Asia. In Industrial Merchant,
value creation and dynamic price management allowed the Group to
transfer the increase in costs, while in Large Industries, the
increase in energy prices is contractually passed on to
customers.
In this context, the Group’s operating margin improved
again significantly by +50 basis points, excluding the
energy impact. The Group also continues taking efficiency measures,
notably through targeted industrial investments.
Recurring net profit(9) reached 1.6 billion euros,
an increase of +20.4% excluding the currency impact. Net
profit (Group share) was 1.3 billion euros, an increase as
published of +5.3% despite a non-recurring provision on the assets
in Russia. Cash flow from operating activities before changes in
net working capital remained high at 23.5% of sales excluding
energy impact. The balance sheet is solid, with a net
debt-to-equity ratio(10) down again to 46%. Recurring ROCE(11)
continued to improve and reached 9.7% at the end of June, in line
with the target of 10% by 2023.
The Group maintained a strong investment momentum, which is a
guarantee of future growth and the expression of its commitment to
fight climate change. With more than 40% of projects linked to
the energy transition, 12-month investment opportunities are
numerous and total 3.3 billion euros. Investment decisions were
high and reached 1.8 billion euros this half-year. The project
backlog, at 3 billion euros, remains high.
Following a strong performance in the 1st half of 2022,
combined with a more resilient business model and a clear strategic
plan, as well as committed teams, the Group is entering the second
half of the year.
In 2022, assuming no significant economic disruption, Air
Liquide is confident in its ability to further increase its
operating margin and to deliver recurring net profit growth at
constant exchange rates(12).
APPENDICES
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
- Recurring net profit excluding currency effect
- Net Profit Excluding IFRS16
- Net Profit Recurring Excluding IFRS16
- Efficiencies
- 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.
(in millions of euros)
H1 2022
H1 2022/2021 Published
Growth
Currency impact
Natural gas impact
Electricity impact
Significant scope
impact
H1 2022/2021 Comparable
Growth
Revenue
Group
14,207
+31.0%
623
1,297
534
72
+7.7%
Impacts in %
+5.8%
+11.9%
+4.9%
+0.7%
Gas & Services
13,600
+31.4%
606
1,297
534
72
+7.2%
Impacts in %
+5.9%
+12.5%
+5.1%
+0.7%
Operating Income Recurring
Group
2,286
+17.4%
124
-
-
35
+9.2%
Impacts in %
+6.4%
-
-
+1.8%
Gas & Services
2,404
+16.3%
120
-
-
35
+8.8%
Impacts in %
+5.8%
-
-
+1.7%
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. The ratio of operating income
recurring divided by the revenue (whether restated or not from the
energy impact) is calculated with rounding to one decimal place.
The variation between 2 periods is calculated as the difference
between these rounded ratios, which can result in positive or
negative differences compared to a more precise calculation, due to
rounding.
H1 2022
Natural gas impact
Electricity impact
H1 2022, excluding energy
impact
Revenue
Group
14,207
1,314
533
12,361
Gas & Services
13,600
1,314
533
11,753
Operating Income Recurring
Group
2,286
2,286
Gas & Services
2,404
2,404
Operating Margin
Group
16.1%
18.5%
Gas & Services
17.7%
20.5%
RECURRING NET PROFIT GROUP SHARE AND RECURRING NET PROFIT
GROUP SHARE EXCLUDING CURRENCY IMPACT
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.
H1 2021
H1 2022
2022/2021 Change
(A) Net Profit (Group Share) - As
Published
1,239.0
1,304.8
+5.3%
(B) Exceptional and significant
transactions after-tax with no impact on OIR
- Exceptional provision on industrial
assets in Russia and other associated costs
(419.0)
- Exceptional income related to
joint-venture take-over in Asia-Pacific
205.5
- Provision for risks in Engineering &
Construction activity
(32.3)
(A) - (B) = Net Profit Recurring (Group
Share)
1,239.0
1,550.6
+25.1%
(C) Currency impact
58.9
(A) - (B) - (C) = Net Profit Recurring
(Group Share) excluding currency impact
1,491.7
+20.4%
NET PROFIT EXCLUDING IFRS16 AND NET PROFIT RECURRING
EXCLUDING IFRS16
Net Profit excluding IFRS16:
H1 2021
FY 2021
H1 2022
(A) Net Profit as Published
1,293.1
2,691.9
1,377.6
(B) = IFRS16 Impact(1)
(6.0)
(13.3)
(7.2)
(A) - (B) = Net Profit excluding
IFRS16
1,299.1
2,705.2
1,384.8
(1)
The IFRS16 impact includes the
reintegration of leasing expenses less depreciation and other
financial expenses booked in relation to IFRS16
Net Profit Recurring excluding IFRS16:
H1 2021
FY 2021
H1 2022
(A) Net Profit as Published
1,293.1
2,691.9
1,377.6
(B) Exceptional and significant
transactions after-tax with no impact on OIR
0.0
0.0
(245.8)
(A) - (B) = Net Profit
recurring
1,293.1
2,691.9
1,623.4
(C) IFRS16 Impact(1)
(6.0)
(13.3)
(7.2)
(A) - (B) - (C) = Net Profit recurring
excluding IFRS16
1,299.1
2,705.2
1,630.6
(1)
The IFRS16 impact includes the
reintegration of leasing expenses less depreciation and other
financial expenses booked in relation to IFRS16
EFFICIENCIES
Efficiencies represent a sustainable cost reduction resulting
from an action plan on a specific project. Efficiencies are
identified and managed on a per project basis. Each project is
followed by a team composed in alignment with the nature of the
project (purchasing, operations, human resources...).
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 in question.
For the denominator: the average of (total shareholders' equity
excluding IFRS16 + net debt) at the end of the past three
half-years.
H1 2021
FY 2021
H1 2022
ROCE Calculation
(in millions of euros)
(a)
(b)
(c)
Numerator
(b)-(a)+(c)
Net Profit Excluding IFRS16
1,299.1
2,705.2
1,384.8
2,790.9
Net Finance costs
(140.7)
(280.0)
(144.7)
(284.0)
Effective Tax Rate (1)
24.5%
24.6%
24.2%
Net Finance costs after tax
(106.2)
(211.2)
(109.7)
(214.7)
Net Profit - Net financial costs after
tax
1,405.3
2,916.4
1,494.5
3,005.6
Denominator
((a)+(b)+(c))/3
Total Equity Excluding IFRS16
19,607.6
22,039.6
23,942.0
21,863.2
Net Debt
12,013.2
10,448.3
12,009.9
11,490.5
Average of (total equity + net
debt)
31,620.8
32,487.9
35,951.9
33,353.7
ROCE
9.0%
(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 IFR16 for the
numerator.
H1 2021
FY 2021
H1 2022
Recurring ROCE
Calculation
(in millions of euros)
(a)
(b)
(c)
Numerator
(b)-(a)+(c)
Net Profit Recurring Excluding
IFRS16
1,299.1
2,705.2
1,630.6
3,036.7
Net Finance costs
(140.7)
(280.0)
(144.7)
(284.0)
Effective Tax Rate(1)
24.5%
24.6%
24.2%
Net Finance costs after tax
(106.2)
(211.2)
(109.7)
(214.7)
Recurring Net Profit Excluding
IFRS16
- Net financial costs after tax
1,405.3
2,916.4
1,740.3
3,251.4
Denominator
((a)+(b)+(c))/3
Total Equity Excluding IFRS16
19,607.6
22,039.6
23,942.0
21,863.2
Net Debt
12,013.2
10,448.3
12,009.9
11,490.5
Average of (total equity + net
debt)
31,620.8
32,487.9
35,951.9
33,353.7
Recurring ROCE
9.7%
(1)
excluding non-recurring tax impact
Calculation of performance indicators (Quarter)
Q2 2022
Q2 2022/2021 Published
Growth
Currency impact
Natural gas impact
Electricity impact
Significant scope
impact
Q2 2022/2021 Comparable
Growth
Revenue
Group
7,320
+32.8%
398
690
267
37
+7.5%
Impacts in %
+7.2%
+12.5%
+4.9%
+0.7%
Gas & Services
7,010
+33.6%
389
690
267
37
+7.3%
Impacts in %
+7.4%
+13.1%
+5.1%
+0.7%
2nd quarter 2022 revenue
BY GEOGRAPHY
Revenue
(in millions of euros)
Q2 2021
Q2 2022
Published change
Comparable change
Americas
2,056
2,686
+30.6%
+9.5%
Europe
1,860
2,706
+45.5%
+5.7%
Asia-Pacific
1,176
1,406
+19.7%
+6.5%
Middle East & Africa
155
212
+36.7%
+2.1%
Gas & Services Revenue
5,247
7,010
+33.6%
+7.3%
Engineering & Construction
93
113
+21.9%
+19.8%
Global Markets & Technologies
172
197
+14.2%
+9.8%
GROUP REVENUE
5,512
7,320
+32.8%
+7.5%
BY WORLD BUSINESS LINE
Revenue
(in millions of euros)
Q2 2021
Q2 2022
Published change
Comparable change
Large industries
1,471
2,527
+71.8%
-2.9%
Industrial Merchant
2,342
2,872
+22.6%
+13.5%
Healthcare
921
970
+5.4%
+2.1%
Electronics
513
641
+24.7%
+17.2%
GAS & SERVICES REVENUE
5,247
7,010
+33.6%
+7.3%
Geographic and segment information
H1 2021
H1 2022
(in millions of euros and %)
Revenue
Operating income
recurring
OIR margin
Revenue
Operating income
recurring
OIR margin
Americas
4,059
802
19.7%
5,017
969
19.3%
Europe
3,657
692
18.9%
5,424
771
14.2%
Asia-Pacific
2,326
513
22.1%
2,746
567
20.7%
Middle East and Africa
308
60
19.3%
413
97
23.3%
Gas & Services
10,350
2,066
20.0%
13,600
2,404
17.7%
Engineering and Construction
169
8
4.5%
221
22
10.1%
Global Markets & Technologies
327
40
12.2%
386
50
12.9%
Reconciliation
-
(166)
-
-
(190)
-
TOTAL GROUP
10,846
1,948
18.0%
14,207
2,286
16.1%
The operating margin (OIR to revenue ratio) stood at
16.1% as published, representing a -190 basis point decline
compared with the 1st half of 2021 due mainly to the sharp increase
in energy costs which are contractually passed through to Large
Industries customers. This therefore has a dilutive impact on the
published margin (without impacting the operating income in
absolute value). Excluding the energy impact, the operating
margin improved very significantly by +50 basis points compared
with the 1st half of 2021.
Consolidated income statement
(in millions of euros)
1st half 2021
1st half 2022
Revenue
10,845.7
14,206.6
Other income
70.0
103.3
Purchases
(4,078.6)
(6,515.7)
Personnel expenses
(2,129.2)
(2,380.0)
Other expenses
(1,711.3)
(1,939.6)
Operating income recurring before
depreciation and amortization
2,996.6
3,474.6
Depreciation and amortization expenses
(1,048.9)
(1,188.6)
Operating income recurring
1,947.7
2,286.0
Other non-recurring operating income
12.7
205.5
Other non-recurring operating expenses
(52.9)
(475.3)
Operating income
1,907.5
2,016.2
Net finance costs
(140.7)
(144.7)
Other financial income
4.1
29.0
Other financial expenses
(50.9)
(64.6)
Income taxes
(425.3)
(459.3)
Share of profit of associates
(1.6)
1.0
PROFIT FOR THE PERIOD
1,293.1
1,377.6
- Minority interests
53.8
72.8
- Net profit (Group share)
1,239.3
1,304.8
Basic earnings per share (in
euros)
2.38 (a)
2.50
(a) Adjusted following the free share
attribution in June 2022.
Consolidated balance sheet
ASSETS (in millions of euros)
December 31, 2021
June 30, 2022
Goodwill
13,992.3
14,864.1
Other intangible assets
1,452.6
1,900.4
Property, plant and equipment
22,531.5
23,915.9
Non-current assets
37,976.4
40,680.4
Non-current financial assets
745.4
884.4
Investments in associates
158.0
157.9
Deferred tax assets
239.3
241.6
Fair value of non-current derivatives
(assets)
73.4
56.0
Other non-current assets
1,216.1
1,339.9
TOTAL NON-CURRENT ASSETS
39,192.5
42,020.3
Inventories and work-in-progress
1,585.1
1,828.6
Trade receivables
2,694.1
3,242.9
Other current assets
810.5
934.9
Current tax assets
106.5
183.5
Fair value of current derivatives
(assets)
63.9
124.1
Cash and cash equivalents
2,246.6
1,519.7
TOTAL CURRENT ASSETS
7,506.7
7,833.7
ASSETS HELD FOR SALE
83.9
88.3
TOTAL ASSETS
46,783.1
49,942.3
EQUITY AND LIABILITIES (in millions of
euros)
December 31, 2021
June 30, 2022
Share capital
2,614.1
2,884.2
Additional paid-in capital
2,749.2
2,494.0
Retained earnings
13,645.1
16,627.7
Treasury shares
(118.3)
(310.2)
Net profit (Group share)
2,572.2
1,304.8
Shareholders' equity
21,462.3
23,000.5
Minority interests
536.5
893.4
TOTAL EQUITY
21,998.8
23,893.9
Provisions, pensions and other employee
benefits
2,291.9
1,937.9
Deferred tax liabilities
2,126.8
2,451.0
Non-current borrowings
10,506.3
10,690.0
Non-current lease liabilities
1,032.8
1,084.6
Other non-current liabilities
343.0
302.5
Fair value of non-current derivatives
(liabilities)
39.0
55.3
TOTAL NON-CURRENT LIABILITIES
16,339.8
16,521.3
Provisions, pensions and other employee
benefits
309.4
309.9
Trade payables
3,333.2
3,610.8
Other current liabilities
2,002.9
2,046.9
Current tax payables
277.8
270.4
Current borrowings
2,188.6
2,839.6
Current lease liabilities
228.0
237.7
Fair value of current derivatives
(liabilities)
67.5
167.6
TOTAL CURRENT LIABILITIES
8,407.4
9,482.9
LIABILITIES HELD FOR SALE
37.1
44.2
TOTAL EQUITY AND LIABILITIES
46,783.1
49,942.3
Consolidated cash flow statement
(in millions of euros)
1st half 2021
1st half 2022
Operating activities
Net profit (Group share)
1,239.3
1,304.8
Minority interests
53.8
72.8
Adjustments:
• Depreciation and amortization
1,048.9
1,188.6
• Changes in deferred taxes
(14.6)
(24.2)
• Changes in provisions
(30.5)
357.1
• Share of profit of associates
1.6
(1.0)
• Profit/loss on disposal of assets
22.1
(170.0)
• Net finance costs
101.3
108.5
• Other non cash items
61.5
70.7
Cash flow from operating activities
before changes in net working capital
2,483.4
2,907.3
Changes in working capital
(266.8)
(634.5)
Other cash items
(26.2)
(31.9)
Net cash flows from operating
activities
2,190.4
2,240.9
Investing activities
Purchase of property, plant and equipment
and intangible assets
(1,439.0)
(1,574.0)
Acquisition of consolidated companies and
financial assets
(569.2)
(54.0)
Proceeds from sale of property, plant and
equipment and intangible assets
44.6
45.8
Proceeds from the sale of subsidiaries,
net of net debt sold and from the sale of financial assets
84.2
22.5
Dividends received from equity
affiliates
3.3
12.7
Net cash flows used in investing
activities
(1,876.1)
(1,547.0)
Financing activities
Dividends paid
• L'Air Liquide S.A.
(1,332.7)
(1,408.1)
• Minority interests
(33.4)
(20.1)
Proceeds from issues of share capital
22.6
16.8
Purchase of treasury shares
(40.2)
(192.5)
Net financial interests paid
(146.8)
(145.1)
Increase (decrease) in borrowings
874.9
467.0
Lease liabilities repayments
(118.4)
(125.3)
Net interests paid on lease
liabilities
(16.5)
(14.6)
Transactions with minority
shareholders
(36.8)
(0.0)
Net cash flows from (used in) financing
activities
(827.3)
(1,421.9)
Effect of exchange rate changes and change
in scope of consolidation
60.7
(35.2)
Net increase (decrease) in net cash and
cash equivalents
(452.3)
(763.2)
NET CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE PERIOD
1,718.6
2,138.9
NET CASH AND CASH EQUIVALENTS AT THE
END OF THE PERIOD
1,266.4
1,375.7
The analysis of net cash and cash equivalents at the end of
the period is as follows:
(in millions of euros)
June 30, 2021
December 31, 2021
June 30, 2022
Cash and cash equivalents
1,387.3
2,246.6
1,519.7
Bank overdrafts (included in current
borrowings)
(121.0)
(107.7)
(144.0)
NET CASH AND CASH EQUIVALENTS
1,266.3
2,138.9
1,375.7
Net debt calculation
(in millions of euros)
June 30, 2021
December 31, 2021
June 30, 2022
Non-current borrowings
(10,068.9)
(10,506.3)
(10,690.0)
Current borrowings
(3,331.6)
(2,188.6)
(2,839.6)
TOTAL GROSS DEBT
(13,400.5)
(12,694.9)
(13,529.6)
Cash and cash equivalents
1,387.3
2,246.6
1,519.7
TOTAL NET DEBT AT THE END OF THE
PERIOD
(12,013.2)
(10,448.3)
(12,009.9)
Statement of changes in net debt
(in millions of euros)
H1 2021
FY 2021
H1 2022
Net debt at the beginning of the
period
(10,609.3)
(10,609.3)
(10,448.3)
Net cash flows from operating
activities
2,190.4
5,570.7
2,240.9
Net cash flows used in investing
activities
(1,876.1)
(3,351.5)
(1,547.0)
Net cash flows used in financing
activities excluding changes in borrowings
(1,555.4)
(1,593.6)
(1,743.8)
Total net cash flows
(1,241.1)
625.6
(1,049.9)
Effect of exchange rate changes, opening
net debt of newly acquired companies and others
(64.8)
(269.3)
(407.1)
Adjustment of net finance costs
(98.0)
(195.3)
(104.6)
Change in net debt
(1,403.9)
161.0
(1,561.6)
NET DEBT AT THE END OF THE
PERIOD
(12,013.2)
(10,448.3)
(12,009.9)
Sales, Operating Income Recurring and investments key figures
synthesis
The following tables gather data already available in
this report. They complement the key figures indicated in
the table on the first page.
Sales
(H1 2022 split of revenue and comparable growth in %)
Total
LargeIndustries IndustrialMerchant Electronics
Healthcare Americas
100%
20%
65%
5%
10%
+9.2%
+5.3%
+11.6%
8.20%
+2.2%
Europe
100%
48%
26%
2%
24%
+6.4%
-7.4%
+22.90%
N.C.
+3.3%
Asia-Pacific
100%
38%
27%
32%
3%
+5.5%
-0.2%
+2.5%
+15.80%
N.C. Middle-East and Africa
100%
N.C. N.C. N.C. N.C.
+0.9%
100%
36%
41%
9%
14%
Gas & Services
+7.2%
-1.4%
+12.7%
+15.5%
+2.3%
Engineering & Construction
+29.0%
Global Markets & Technologies
+13.8%
GROUP TOTAL
+7.7%
N.C.: Not communicated.
Operating Income Recurring
(Operating margin in %(a))
H1 2021
H1 2022
H1 2022, excluding energy
impact
2022/2021 excluding energy
impact
Operating Income Recurring H1
2022 (M€)
Americas
19.7%
19.3%
19.9%
+20 bps
969
Europe
18.9%
14.2%
19.8%
+90 bps
771
Asia-Pacific
22.1%
20.7%
21.9%
-20 bps
567
Middle-East and Africa
19.3%
23.3%
24.0%
+470 bps
97
Gas & Services
20.0%
17.7%
20.5%
+50 bps
2,404
Engineering & Construction
4.5%
10.1%
10.1%
+560 bps
22
Global Markets & Technologies
12.2%
12.9%
12.9%
+70 bps
50
(a)
Operating income recurring / revenue as
published.
Investments
(in billion euros)
H1 2022
12-month portfolio of investment
opportunities(a)
3.3
Investment decisions(b)
1.8
Investment backlog(a)
3.0
Additional contribution to revenue of unit
start-ups and ramp-ups(b)
1.1
(a)
At the end of the reporting period.
(b)
Cumulated from the beginning of the
calendar year until the end of the reporting period.
The slideshow that accompanies this release
is available as of 7:20 am (Paris time) at
www.airliquide.com.
Throughout the year, follow Air Liquide on
Twitter: @AirLiquideGroup.
UPCOMING EVENTS
Génération Hydrogène: September 28, 2022
2022 3rd Quarter Revenue: October 25, 2022
A world leader in gases, technologies and services for Industry
and Health, Air Liquide is present in 75 countries with
approximately 66,400 employees and serves more than 3.8 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.
Taking action today while preparing the future is at the heart
of Air Liquide’s strategy. With ADVANCE, its strategic plan for
2025, Air Liquide is targeting a global performance, combining
financial and extra-financial dimensions. Positioned on new
markets, the Group benefits from major assets such as its business
model combining resilience and strength, its ability to innovate
and its technological expertise. The Group develops solutions
contributing to climate and the energy transition—particularly with
hydrogen—and takes action to progress in areas of healthcare,
digital and high technologies.
Air Liquide’s revenue amounted to more than 23 billion euros in
2021. Air Liquide is listed on the Euronext Paris stock exchange
(compartment A) and belongs to the CAC 40, CAC 40 ESG, EURO STOXX
50 and FTSE4Good indexes.
1
See definition in the appendix.
2
See definition and reconciliation in the
appendix.
3
Adjusted following the free share
attribution in June 2022.
4
See definition and reconciliation in the
appendix.
5
See definition in the appendix.
6
See definition and reconciliation in the
appendix.
7
Including transactions with minority
shareholders.
8
See definition and reconciliation in the
Appendix.
9
Including exceptional and significant
transactions that have no impact on the operating income
recurring.
10
Adjusted for dividend seasonality.
11
Based on the recurring net profit, see
reconciliation in appendix.
12
Operating margin excluding energy
passthrough impact. Recurring net profit excluding exceptional and
significant transactions that have no impact on the operating
income recurring, and excluding the impact of any US tax reform in
2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220727005749/en/
Media Relations media@airliquide.com
Investor Relations IRTeam@airliquide.com
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