Building on a Solid Performance and a Record Investment Dynamic in 2023, Air Liquide Accelerates and Doubles the Margin Ambition of Its ADVANCE Strategic Plan
Air Liquide (Paris:AI):
|
FY 2023 |
2023/2022 as published |
2023/2022 comparable(a) |
||
Group Revenue |
27,608 |
|
-7.8% |
|
+3.7% |
of which Gas & Services |
26,360 |
|
-7.7% |
|
+4.2% |
Operating Income Recurring (OIR) |
5,068 |
|
+4.2% |
|
+11.4% |
Group OIR Margin |
18.4% |
|
+220 bps |
|
|
Variation excluding energy(b) |
|
|
+80 bps |
|
|
Gas & Services OIR Margin |
20.0% |
|
+230 bps |
|
|
Variation excluding energy(b) |
|
|
+70 bps |
|
|
Net Profit (Group Share) |
3,078 |
|
+11.6% |
|
|
Net Profit Recurring (Group Share)(c) |
3,320 |
|
+5.0% |
|
|
Earnings per Share (in euros) |
5.90 |
|
+11.7% |
|
|
2023 proposed Dividend per Share (in euros) |
3.20 |
|
+8.5% |
|
|
Cash flow from operating activities before changes in working capital |
6,357 |
|
+1.6% |
|
|
Net Debt |
€9.2 bn |
|
|
|
|
Return on Capital Employed after tax - ROCE |
9.8% |
|
+70 bps |
|
|
Recurring ROCE(d) |
10.6% |
|
+30 bps |
|
|
(a) Change excluding the currency, energy (natural gas and electricity) and significant scope impacts, see reconciliation in the appendices. (b) See reconciliation in the appendices. (c) Excluding exceptional and significant transactions that have no impact on the operating income recurring, see reconciliation in the appendices. (d) Based on the recurring net profit, see reconciliation in appendix.
Commenting on 2023 results,
“In 2023, Air Liquide achieved a solid performance, highlighting the resilience and quality of our business model as well as the mobilization and agility of our teams in a complex and changing macroeconomic and geopolitical environment. The Group’s performance was characterized by an increase in sales on a comparable basis, a further improvement in its operating margin excluding the energy impact and an accelerating investment momentum, particularly in decarbonization projects.
In particular, I am proud to highlight that we have practically reached, in two years, the margin ambition targeted for 2025 as part of our ADVANCE strategic plan. As a consequence, we announce today that we are doubling our initial ambition.
We also confirm our other ADVANCE financial objectives, sales growth on a comparable basis and Return on Capital Employed, as well as our investment decision ambition. In addition, on the extra-financial level, our many decarbonization initiatives give us confidence in our objective to combine growth in our business with a reduction in our CO2 emissions in absolute value from 2025.
Revenue reached
In line with its ADVANCE strategic plan,Air Liquide continued to improve its operational performance. The Group generated record efficienciesof
Net profit (Group share) amounted to
The investment dynamic of the Group is accelerating, supported in particular by our projects in the energy transition and electronics. The backlog is historically high at
In 2024, Air Liquide is confident in its ability to further increase its operating margin and to deliver growth in Net profit recurring, at constant exchange rates(4)."
Highlights
|
Financial performance
Group revenue for 2023 totaled
Gas & Services revenue totaled
The two growth(5) drivers for 2023 were the Industrial Merchant business, with sales up +8.5%, benefiting from a price impact that remained high (+8.4%) and resilient volumes, and the Healthcare business (+8.4%), bolstered by the dynamic development of
-
Gas & Services revenue in the
Americas totaled10,169 million euros in 2023, up by +5.1%.Large Industries sales (-2.2%) were impacted by customer turnarounds and relatively low demand. The Industrial Merchant business posted strong growth of +6.7%, boosted by a high price impact (+6.3%) and slightly positive volumes. In Healthcare, the rise in prices in proximity care inthe United States and the dynamism of the business inSouth America contributed to the strong increase in sales (+14.2%). Electronics revenue was down by -2.8% in a context of slowing demand from memory manufacturers impacting sales of materials. -
Gas & Services revenue in
Europe was up +4.2% in 2023 and totaled9,734 million euros .Large Industries sales were slightly down (-0.9%) in a context of weak demand from customers in the Chemicals and Steel industries. Revenue from the Industrial Merchant business rose sharply, by +12.3%, driven by a price impact of +14.0% and resilient volumes excluding helium and liquefied CO2. Healthcare sales increased by +5.8%, benefiting from the dynamism ofHome Healthcare and the increase in medical gas prices in an inflationary context. -
Gas & Services revenue for the
Asia Pacific region in 2023 rose by +1.8%, to total5,410 million euros .The Large Industries business (-5.5%) was impacted by weak demand and customer turnarounds. Sales in the Industrial Merchant business were up sharply, by +9.9%, driven by a high price impact at +7.3% and by an increase in volumes, inChina in particular. Growth in Electronics was +2.2% over the year: very dynamic in 1st quarter, it was then impacted by lower demand from memory manufacturers and a very high basis of comparison in 2022. -
Gas & Services revenue in the
Middle East &Africa region increased by +7.0% to1,047 million euros in 2023. All business lines grew.
Global Markets & Technologies revenue for 2023 was down by -1.0% compared to 2022, at
Consolidated revenue from Engineering & Construction totaled
The Group's operating incomerecurring (OIR) reached
Excluding the energy impact, the operating margin improved very significantly by +80 basis points. Thus, the sum of improvements in the operating margin excluding energy impact in 2022 and 2023 reached +150 basis points and compares to the +160 basis points expected over the 4-year period of the ADVANCE plan. Consequently, the ambition for improvement in the margin excluding the energy impact of the ADVANCE strategic plan is raised to +320 basis points over 4 years, which reflects an acceleration. This corresponds to twice the improvement initially planned. Hence, +170 basis points of improvement are expected for the remaining 2 years of the ADVANCE plan.
Net profit (Group share) reached 3,078millioneuros in 2023, showing strong growth of +11.6% as published and an increase of +21.0% excluding the currency impact. It exceeded
Net earnings per share, stood at
Net cash flow from operating activities after changes in working capital requirement amounted to
Net debt at
The return on capital employed after tax (ROCE) was 9.8% in 2023. The recurring ROCE(7) stood at 10.6%, an improvement compared to 10.3% in 2022 and aligned with the ADVANCE strategic plan's double-digit objective.
Industrial and financial investment decisions reached a high level of 4.3 billioneuros in 2023, up sharply from
At the General Meeting on
Extra-financial performance
The Group's scopes 1 and 2 CO2 emissions in 2023 totaled 37.6million tonnes of CO2 equivalent(8). They were down -4.7% compared with 2022 and -4.9% compared with the 2020 baseline.
The Group announced in 2023 the signature of long-term power purchase agreements (PPAs), for more than 1.5 TWh per year aiming to reduce its annual emissions of CO2 by around -1.2 million tonnes. Moreover the Group pursues carbon capture and energy efficiency project development.
With these achievements, Air Liquide is confident to accomplish its ADVANCE near term goal of CO2 emissions inflection in 2025.
On the social aspect, safety is a priority. The lost-time accident frequency rate(9) stood at 1.0 in 2023. The share of employees benefitting from a common basis of care coverage reached 78%, showing a sharp increase compared to 34% in 2021, in line with the objective of 100% by 2025.
Finally, the Access Oxygen program pursues its development. Over 2 million people have been facilitated with access to medical oxygen in low and moderate income countries, a +16% increase compared to 2022.
Governance
On the recommendation of the
-
Ms
Kim Ann Mink , an American national, who has been a Director on the Board of Directors sinceMay 2020 and a member of the Remuneration Committee sinceSeptember 2021 . Having spent most of her career in major international groups in the chemicals industry, where she held various management positions, MsKim Ann Mink brings her experience in the fields of research and innovation and her managerial skills to the Board of Directors, in addition to her scientific expertise. -
Ms
Monica de Virgiliis , a French-Italian national, who has been a Director on the Board of Directors sinceFebruary 15, 2023 , following her provisional appointment by the Board of Directors (ratified by the General Meeting ofMay 3, 2023 ), replacing MsAnette Bronder for the remainder of her term of office, i.e. until the end of the General Meeting ofApril 30, 2024 . She has also been a member of theEnvironment and Society Committee sinceMay 2023 . MsMonica de Virgiliis brings to the Board of Directors her experience of more than 15 years in the Electronics business, her skills in the field of technology and energy, her managerial skills and her commitment to energy transition.
The Board of Directors has qualified Ms.
During its plenary meeting of
At the end of the General Meeting, subject to approval by the Meeting of all the resolutions proposed, the Board of Directors composition would therefore remain unchanged at 14 members: 12 members appointed by the General Meeting, most of whom are independent (i.e. 83% independent Directors), including 5 women (i.e. 42%), 5 foreign nationals (i.e. 42%) and 2 Directors representing the employees.
Finally, the Board of Directors will submit to the vote of the General Meeting the elements of remuneration of Mr
Air Liquide’s Board of Directors, which met on
Table of Contents
PERFORMANCE 8
Income Statement 9
Cash Flow and Balance Sheet 19
Extra-financial performance 21
INVESTMENT CYCLE AND FINANCING 23
Investments 23
Financing 25
OUTLOOK 27
APPENDICES 28
Performance indicators 28
Calculation of performance indicators (Year) 30
Calculation of performance indicators (Quarter) 34
Definitions 35
Geographic and segment information 36
Consolidated income statement 36
Consolidated balance sheet 37
Consolidated cash flow statement 38
Sales, Operating Income Recurring and investments key figures synthesis 40
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.
(in millions of euros) |
FY 2022 |
FY 2023 |
2023/2022 published change |
2023/2022 comparable change(a) |
||||
Total Revenue |
29,934 |
|
27,608 |
|
-7.8% |
|
+3.7% |
|
Of which Gas & Services |
28,573 |
|
26,360 |
|
-7.7% |
|
+4.2% |
|
Operating Income Recurring (OIR) |
4,862 |
|
5,068 |
|
+4.2% |
|
+11.4% |
|
Group OIR Margin |
16.2% |
|
18.4% |
|
+220 bps |
|
|
|
Variation excluding energy impact(b) |
|
|
|
|
+80 bps |
|
|
|
Other Non-Recurring Operating Income and Expenses |
(571) |
|
(497) |
|
|
|
|
|
Net Profit (Group Share) |
2,759 |
|
3,078 |
|
+11.6% |
|
|
|
Net Profit Recurring (Group share)(c) |
3,162 |
|
3,320 |
|
+5.0% |
|
|
|
Variation excluding currency impact |
|
|
|
|
+13.3% |
|
|
|
Net earnings per share (in euros) |
5.28 |
|
5.90 |
|
+11.7% |
|
|
|
Dividend per Share (in euros) |
2.95 |
|
3.20(d) |
|
+8.5% |
|
|
|
Cash flow from operating activities before changes in working capital |
6,255 |
|
6,357 |
|
+1.6% |
|
|
|
Net cash flows from operating activities |
5,810 |
|
6,263 |
|
+7.8% |
|
|
|
Variation excluding currency impact |
|
|
|
|
+12.8% |
|
|
|
Industrial capital expenditure |
3,273 |
|
3,393 |
|
+3.7% |
|
|
|
Net Debt |
€10.3 bn |
|
€9.2 bn |
|
|
|
|
|
Net Debt to Equity ratio |
41.8% |
|
36.8% |
|
|
|
|
|
Return on Capital Employed after tax - ROCE |
9.1% |
|
9.8% |
|
+70 bps |
|
|
|
Recurring ROCE(e) |
10.3% |
|
10.6% |
|
+30 bps |
|
|
(a) Change excluding the currency, energy (natural gas and electricity) and significant scope impacts, see reconciliation in the appendices
(b) See reconciliation in the appendices.
(c) Excluding exceptional and significant transactions that have no impact on the operating income recurring, see reconciliation in the appendices.
(d) Dividend proposed to shareholders for the fiscal year 2023.
(e) Based on the recurring net profit, see reconciliation in the appendices.
Income Statement
REVENUE
Revenue (in millions of euros) |
FY 2022 |
FY 2023 |
2023/2022 published change |
2023/2022 comparable change |
||||
Gas & Services |
28,573 |
|
26,360 |
|
-7.7% |
|
+4.2% |
|
Engineering & Construction |
474 |
|
390 |
|
-17.7% |
|
-15.6% |
|
Global Markets & Technologies |
887 |
|
858 |
|
-3.3% |
|
-1.0% |
|
TOTAL REVENUE |
29,934 |
|
27,608 |
|
-7.8% |
|
+3.7% |
Revenue by Quarter (in millions of euros) |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
||||
Gas & Services |
6,893 |
|
6,512 |
|
6,483 |
|
6,472 |
|
Engineering & Construction |
87 |
|
93 |
|
110 |
|
100 |
|
Global Markets & Technologies |
194 |
|
201 |
|
218 |
|
245 |
|
TOTAL REVENUE |
7,174 |
|
6,806 |
|
6,811 |
|
6,817 |
|
2023/2022 Group published change |
+4.2% |
|
-7.0% |
|
-17.4% |
|
-8.9% |
|
2023/2022 Group comparable change |
+6.2% |
|
+3.8% |
|
+1.5% |
|
+3.7% |
|
2023/2022 Gas & Services comparable change |
+6.7% |
|
+4.1% |
|
+1.7% |
|
+4.6% |
Group
Group revenue for 2023 totaled
Sales in the Global Markets & Technologies activity were down by -1.0% on a comparable basis and posted organic growth of +9.7%, excluding the impact of divestitures finalized in the 4th quarter 2022. Consolidated revenue from Engineering & Construction was down -15.6%. This excludes activities carried out as part of internal projects for
The Group’s revenue as published was down -7.8%, impacted by unfavorable energy (-7.6%) and currency (-4.2%) impacts, the significant perimeter impact being slightly positive at +0.3%. The latter corresponds to the re-invoicing of energy consumed by the 16 units taken-over in 2021 in
Gas & Services
Gas & Services revenue totaled
The two growth drivers for 2023 were the Industrial Merchant business, with sales up +8.5%, benefiting from a price impact that remained high (+8.4%) and resilient volumes, and the Healthcare business (+8.4%), bolstered by the dynamic development of
Revenue as published in the Gas & Services business was down -7.7%, penalized by negative energy (-8.0%) and currency (-4.2%) impacts, while the significant scope effect was slightly positive at +0.3%.
Revenue by geography and business line (in millions of euros) |
FY 2022 |
FY 2023 |
2023/2022 published change |
2023/2022 comparable change |
||||
|
10,680 |
|
10,169 |
|
-4.8% |
|
+5.1% |
|
|
11,390 |
|
9,734 |
|
-14.5% |
|
+4.2% |
|
|
5,608 |
|
5,410 |
|
-3.5% |
|
+1.8% |
|
|
895 |
|
1,047 |
|
+17.1% |
|
+7.0% |
|
GAS & SERVICES REVENUE |
28,573 |
|
26,360 |
|
-7.7% |
|
+4.2% |
|
|
10,525 |
|
7,825 |
|
-25.7% |
|
-1.8% |
|
Industrial Merchant |
11,567 |
|
11,975 |
|
+3.5% |
|
+8.5% |
|
Healthcare |
3,923 |
|
4,077 |
|
+3.9% |
|
+8.4% |
|
Electronics |
2,558 |
|
2,483 |
|
-2.9% |
|
+2.4% |
Gas & Services revenue in the
-
Sales in
Large Industries were down -2.2% in 2023, impacted in particular by customer turnarounds and the divestiture of the activity inTrinidad and Tobago . Business was also marked by relatively low demand, in particular from customers in the Steel industry. Oxygen volumes for Chemicals inthe United States increased slightly in the 4th quarter, supported notably by the start-up of a new unit. - In Industrial Merchant, the significant increase in sales of +6.7% in 2023 was supported by a strong priceimpact of +6.3%, in an inflationary context albeit slightly slowing sequentially (+5.2% in the 4th quarter). Volumes were up slightly over the year. They increased in the 1st half-year, in particular those of bulk gases. In the 2nd half of the year, hardgoods volumes were down but gas volumes remained resilient. They benefited from the demand increase in particular in the Construction, Research, Energy and Aeronautics sectors.
-
In Healthcare, sales increased sharply, by +14.2% in 2023. The main drivers of this growth were price increase in proximity care in
the United States , the development of sleep apnea treatment inCanada in the 1st half-year and the dynamism of theMedical Gases and Home Healthcare businesses inLatin America . - Revenue from Electronics was down -2.8% over the year. Sales of specialty and advanced materials were strongly impacted by the memory manufacturer production slowdown. Carrier gas revenue growth was solid, driven by the start-up of new units. Sales of Equipment and Installations were up, particularly in the 4th quarter.
*PEM: Proton Exchange Membrane. |
Revenue in
-
Revenue from
Large Industries was slightly down (-0.9%) over 2023. In the 1st quarter of 2023, demand strengthened in a context of decreasing energy prices and following a sharp drop in volumes in the 2nd half of 2022 due to the record increase in energy prices. Demand from Chemicals and Steel customers then stabilized at a low level until the end of the year. Sales of cogeneration units were down in 2023, penalized by lower electricity prices than in 2022. Hydrogen volumes for Refining increased compared to 2022, particularly in the 4th quarter. - In the Industrial Merchant business, sales growth remained extremely strong at +12.3%, bolstered by a price impact of +14.0%, in addition to the increase of +23.6% in 2022. This price impact gradually eased over the year, reaching +8.4% in the 4th quarter. Volumes excluding helium and liquefied CO2, whose supply has been tight for several months, remained resilient, particularly in the Automotive, Manufacturing and Metallurgy markets.
-
Revenue from Healthcare increased by +5.8% in 2023. Diabetes and sleep apnea treatments were the main contributors to the strong growth in
Home Healthcare sales. Growth inMedical Gas revenue was driven by rising prices in an inflationary context. Sales of specialty ingredients and equipment also increased.
*PEM: Proton Exchange Membrane. |
Revenue for the
-
Sales in
Large Industries were down by -5.5% over the year. They were penalized by weak demand in the region, particularly in air gases for the Steel industry inJapan , and in Chemicals. Customer turnarounds inChina also impacted sales. -
Industrial Merchant revenue was up sharply by +9.9% in 2023. The price impact stood at a very high level of +7.3%, with particularly strong price increases in
Japan andAustralia . InChina , following a wave of covid-19 at the start of the year, volumes rose sharply from March until the end of the year. The Manufacturing and Technology sectors supported the increase in volumes in the region, as well as new gas supply contracts for the production of battery materials. - Sales in the Electronics business were up by +2.2% in 2023. Following a double-digit increase in the 1st quarter, revenue slowed to a low point (-5.2%) in the 3rd quarter, before reaching a level stable compared to the 4th quarter of 2022 by the end of the year. This evolution is explained by the sharp decline in production by memory manufacturers, which directly affected the volumes of specialty and advanced materials, and by a high basis of comparison, with sales growth having hit +18% in 2022. In addition, growth in carrier gas sales continued, driven by the start-up of new units.
|
Revenue in the
|
Engineering & Construction
Consolidated revenue from Engineering & Construction totaled
Order intake amounted to
Engineering & Construction
* PEM: Proton Exchange Membrane. |
Global Markets & Technologies
Global Markets & Technologies revenue for 2023 was down by -1.0% compared to 2022, at
Order intake for Group projects and third-party customers amounted to
Global Markets & Technologies
|
OPERATING INCOME RECURRING
Operating income recurring before depreciation and amortization totaled
The efficiencies(11) amounted to
Depreciation and amortization amounted to
The Group's operating incomerecurring (OIR) reached
The operating margin (OIR over revenue) as published stood at 18.4%, up +220 basis points compared to 2022. Indeed, energy costs, which are contractually passed through to
Excluding the energy impact, the operating margin improved very significantly by +80 basis points. Thus, the sum of improvements in the operating margin excluding energy impact in 2022 and 2023 reached +150 basis points and compares to the +160 basis points expected over the 4-year period of the ADVANCE plan. Consequently, the ambition for improvement in the margin excluding the energy impact of the ADVANCE strategic plan is raised to +320 basis points over 4 years, which reflects an acceleration. This corresponds to twice the improvement initially planned. Hence, +170 basis points of improvement are expected for the remaining 2 years of the ADVANCE plan.
Gas & Services
The Gas & Services operating income recurring totaled
The price increase of +8.4% in Industrial Merchant in 2023 followed the record increase of +14.7% in 2022, demonstrating the Group’s ability to quickly transfer the rise in costs in an inflationary environment. Prices were also up in
Gas & Services Operating margin(a) |
FY 2022 |
FY 2023 |
2023/2022 excluding energy impact |
|||
|
19.5% |
|
20.9% |
|
+60 bps |
|
|
13.8% |
|
17.7% |
|
+90 bps |
|
|
21.2% |
|
22.4% |
|
+150 bps |
|
|
23.6% |
|
20.0% |
|
-350 bps |
|
TOTAL |
17.7% |
|
20.0% |
|
+70 bps |
(a) Operating income recurring / revenue as published.
Operating income recurring for the
Operating income recurring for
In
Operating income recurring for the
Engineering & Construction
Operating income recurring for Engineering & Construction was
Global Markets & Technologies
Operating income recurring for the Global Markets & Technologies business stood at 143 millioneuros in 2023. The operating margin reached 16.7%, a sharp increase of +410 basis points compared with 2022. This performance was notably boosted by the increase in volumes of hydrogen for mobility in
Corporate Costs and Research & Development
Corporate costs and Research & Development expenses stood at
NET PROFIT
Other operating income and expenses showed a net balance of
Financial income and expenses amounted to -
The tax expense amounted to
The share of profit of associates amounted to
Net profit (Group share) stood at 3,078millioneuros in 2023, showing strong growth of +11.6% as published and an increase of +21.0% excluding the currency impact. It exceeded
Net earnings per share, stood at
Change in the number of shares
|
FY 2022 |
FY 2023 |
Average number of outstanding shares |
522,069,020 |
522,110,068 |
DIVIDEND
At the General Meeting on
Cash Flow and Balance Sheet
(in millions of euros) |
2022 |
2023 |
||
Cash flow from operating activities before changes in working capital |
6,255 |
|
6,357 |
|
Changes in working capital |
(397) |
|
(154) |
|
Other cash items |
(48) |
|
60 |
|
Net cash flows from operating activities |
5,810 |
|
6,263 |
|
Dividends |
(1,487) |
|
(1,667) |
|
Industrial capital expenditure |
(3,273) |
|
(3,393) |
|
Other financing operations |
31 |
|
314 |
|
Transactions with minority shareholders |
(4) |
|
(142) |
|
Proceeds from issues of share capital |
38 |
|
129 |
|
Purchase of treasury shares |
(192) |
|
(82) |
|
Lease liabilities repayments and net interests paid on lease liabilities |
(283) |
|
(280) |
|
Impact of exchange rate changes and net indebtedness of newly consolidated companies & restatement of net finance costs |
(454) |
|
(102) |
|
Change in net debt |
187 |
|
1,041 |
|
Net debt as of |
(10,261) |
|
(9,221) |
|
Debt-to-equity ratio as of |
41.8% |
|
36.8% |
NET CASH FLOW FROM OPERATING ACTIVITIES AND CHANGES IN WORKING CAPITAL REQUIREMENT
Cash flows from operating activities before changes in working capital amounted to
Working Capital Requirement (WCR) rose by
Net cash flow from operating activities after changes in working capital requirement amounted to
CAPITAL EXPENDITURE
(in millions of euros) |
Industrial Investments |
Financial Investments(a) |
Total capital expenditures(a) |
|||
2019 |
2,636 |
568 |
3,205 |
|||
2020 |
2,630 |
145 |
2,775 |
|||
2021 |
2,917 |
696 |
3,613 |
|||
2022 |
3,273 |
140 |
3,413 |
|||
2023 |
3,393 |
245 |
3,638 |
(a) Including transactions with minority shareholders.
Capital expenditure was very high in 2023 at
Industrial capital expenditure amounted to
|
Gas & Services |
|||||||||
(in millions of euros) |
|
|
|
|
Total |
|||||
2022 |
972 |
979 |
866 |
150 |
2,967 |
|||||
2023 |
1,113 |
1,059 |
835 |
145 |
3,152 |
Financial investments amounted to
Proceeds from the sale of assets reached
Net capital expenditure
(15) totaled
NET DEBT
Net debt at
ROCE
The return on capital employed after tax (ROCE) was 9.8% in 2023. The recurring ROCE(16) stood at 10.6%, an improvement compared to 10.3% in 2022 and aligned with the ADVANCE strategic plan's double-digit objective.
Extra-financial performance
ADVANCE, the Group's strategic plan 2022-2025 announced in
The Group's scopes 1 and 2 CO2 emissions in 2023 totaled 37.6million tonnes of CO2 equivalent(17). They were down -4.7% compared with 2022 and -4.9% compared with the 2020 baseline. In a context of soft demand from
Actions performed in 2023 will contribute to the reduction of CO2 emissions in the coming years. Thus, in order to accelerate the decarbonization of its production units, the Group announced in 2023 the signature of long-term power purchase agreements (PPAs), for more than 1.5 TWh per year aiming to reduce its annual emissions of CO2 by around -1.2 million tonnes. Air Liquide also decided on the construction of a large scale (200 MW) PEM electrolyzer, on the installation of a carbon capture uniton one of the Group’s largest hydrogen production units and on an industrial scale ammonia cracking pilot plant to further develop its low-carbon hydrogen production portfolio of solutions. These projects will contribute to the decarbonization of the Group’s assets after the commissioning of these renewable electricity sources and the start-up of the production units.
With these achievements, Air Liquide is confident to achieve its ADVANCE near term goal of emissions inflection in 2025.
The Group also offers efficient solutions to decarbonize its customers production plant and actively participates in their deployment. Hence, the
On the social aspect, safety is a priority. Initiatives have been undertaken to raise awareness and to prevent accidents with a “zero accident” ambition. Furthermore, the lost-time accident frequency rate(19) stood at 1.0 in 2023.
The share of employees benefitting from a common basis of care coverage reached 78%, showing a sharp increase compared to 34% in 2021, in line with the objective of offering coverage to all employees by 2025. The gender equality indicator improved again in 2023 and stood at a rate of 32% of women among managers and professionals. Moreover, 73% of the Group’s employees now have the opportunity to engage in local initiatives to support communities as part of the Citizen at Work initiative, an increase compared to 43% in 2022.
Finally, the Access Oxygen program pursues its development. Over 2 million people have been facilitated with access to medical oxygen in low and moderate income countries, a +16% increase compared to 2022.
Sustainable development
|
INVESTMENT CYCLE AND FINANCING
I nvestments
INVESTMENT DECISIONS AND INVESTMENT BACKLOG
(in billions of euros) |
Industrial Investment decisions |
Financial investment decisions (acquisitions) |
Total investment decisions |
|||
2019 |
3.2 |
0.6 |
3.7 |
|||
2020 |
3.0 |
0.1 |
3.2 |
|||
2021 |
3.0 |
0.6 |
3.6 |
|||
2022 |
3.9 |
0.1 |
4.0 |
|||
2023 |
4.2 |
0.1 |
4.3 |
Industrial and financial investment decisions reached a record level of 4.3 billioneuros in 2023, up sharply from
Industrial investment decisions amounted to
-
In
Large Industries , they included in particular three major projects related to the energy transition in dynamic industrial areas. A new production unit is being built inCanada to supply manufacturers of battery materials with renewable air gases. InFrance , the first large electrolyzer (200 MW) will produce low-carbon and renewable hydrogen. In the 4th quarter, the Group decided to invest in a CryocapTM CO2 capture unit inthe Netherlands to decarbonize one of the Group’s largest hydrogen production units and meet the needs of customers in the Benelux network. This unit will be connected to Porthos, one of the largest carbon capture and storage infrastructures inEurope . -
Development of the Electronics business continued in 2023 with investments in carrier gas production units in
Asia ,Europe and America, including one large unit. Decisions also concerned the investment in a new advanced materials production site inAsia . - In Industrial Merchant, for the 3rd consecutive year, investment decisions included around 50 small on-sites, to serve customers in secondary Electronics or with applications related to the energy transition, such as the production of battery materials.
-
Investments in the Healthcare business included distribution equipment to support the growth of medical gas sales, particularly in
South Africa andSpain . They also included investments in new innovative cylinders and efficiency projects. -
Within the Global Markets & Technologies business, the development of hydrogen mobility continued, in particular in
China ,Korea andEurope , with investment decisions in hydrogen filling centers and their logistics chain. The biomethane activity also continued to grow and a new investment in a production unit inthe United States was decided in the 4th quarter.
Financial investment decisions totaled
The investment backlog hit a record high of
Investissements
|
START-
The main start-ups in 2023 concerned production units in
The additional contribution to sales of unit start-ups and ramp-ups totaled
The additional contribution to 2024sales of unit start-ups and ramp-ups is expected to be between 270 and
INVESTMENT OPPORTUNITIES
The portfolio of 12-month investment opportunities remained high, at
Financing
“A” CATEGORY FINANCIAL RATING CONFIRMED
Since 2023, Scope Ratings, the leading European credit rating agency, is one of the rating agencies that evaluate Air Liquide. Air Liquide is thus rated by three rating agencies, Standard & Poor’s, Moody’s and Scope Ratings. The long-term ratings from Standard & Poor’s and Scope Ratings are “A” and from Moody’s is “A2”. Moreover, the short-term ratings are “A1” for Standard & Poor’s, “S-1” for Scope Ratings and “P1” for Moody’s. Standard & Poor’s confirmed its ratings on
|
DIVERSIFYING AND SECURING FINANCIAL SOURCES
As of
The total amount of credit facilities was increased to
Issues and redemptions
In
As part of optimizing the management of its debt and cash surpluses,
-
In
March 2023 , for a total of383 million U.S. dollars (nominal amount), following a Tender Offering process for two series of bonds inU.S. dollars, the first maturing in 2026 and the second in 2046. -
In
November 2023 , for a total of236 million euros (nominal amount), following a Tender Offering process for two series of bonds maturing in 2024 and a series of bonds maturing in 2025.
In addition, three bond issues were repaid at maturity in March and
Sustainable financing
Within the context of its project to build two low-carbon hydrogen production units in the
This Green Loan is the first granted in the world to finance low-carbon hydrogen production respecting the principles common to the green taxonomies of
Net Debt by currency as of
|
|
|
||
Euro |
46% |
52% |
||
|
37% |
30% |
||
Japanese Yen |
3% |
3% |
||
Chinese Renminbi |
1% |
1% |
||
Taiwanese Dollar |
4% |
5% |
||
Others |
9% |
9% |
Investments are generally funded in the currency in which the cash flows are generated, creating a natural currency hedge. In 2023, net debt decreased in
CENTRALIZATION OF CASH AND FUNDING
In 2023,
On
DEBT MATURITY AND SCHEDULE
The average of the Group’s debt maturity was 5.5 years at
Finally, the single largest annual maturity represents approximately 12% of total debt and the debt maturing in the next 12 months is less than
OUTLOOK
In 2023, Air Liquide achieved a solid performance, highlighting the resilience and quality of its business model as well as the mobilization and agility of its teams in a complex and changing macroeconomic and geopolitical environment. The Group’s performance was characterized by an increase in sales on a comparable basis, a further improvement in its operating margin excluding the energy impact and an accelerating investment momentum, particularly in decarbonization projects.
In particular, the Group has practically reached, in two years, the margin ambition targeted for 2025 as part of its ADVANCE strategic plan. As a consequence, it is announcing today a doubling of its initial ambition.
Air Liquide also confirms its ADVANCE financial objectives, related to sales growth on a comparable basis and Return on Capital Employed, as well as its investment decision ambition. In addition, on the extra-financial level, the many decarbonization initiatives give the Group confidence in its objective to combine growth in its business with a reduction in its CO2 emissions in absolute value from 2025.
Revenue reached
In line with its ADVANCE strategic plan, Air Liquide continued to improve its operational performance. The Group generated record efficiencies of
Net profit (Group share) amounted to
The investment dynamic of the Group is accelerating, supported in particular by its projects in the energy transition and electronics. The backlog is historically high at
In 2024, Air Liquide is confident in its ability to further increase its operating margin and to deliver growth in Net profit recurring, at constant exchange rates(23).
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
- Reported and restated CO2 emissions
- Operating income recurring before depreciation and amortization excluding IFRS16 at 2015 exchange rate to calculate the carbon intensity
- 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
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.
Note: exceptionally, the acquisition of Sasol production units in 2021 had an impact in 2 steps on Group sales. After the acquisition of the assets in
Calculation of performance indicators (Year)
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) |
FY 2023 |
FY 2023/2022 Published Growth |
Currency impact |
Natural gas impact |
Electricity impact |
Significant scope impact |
FY 2023/2022 Comparable Growth |
|||||||
Revenue |
|
|
|
|
|
|
|
|||||||
Group |
27,608 |
|
-7.8% |
|
(1,255) |
|
(1,765) |
|
(503) |
|
97 |
|
+3.7% |
|
Impacts in % |
|
|
|
|
-4.2% |
|
-5.9% |
|
-1.7% |
|
+0.3% |
|
|
|
Gas & Services |
26,360 |
|
-7.7% |
|
(1,225) |
|
(1,765) |
|
(503) |
|
97 |
|
+4.2% |
|
Impacts in % |
|
|
|
|
-4.2% |
|
-6.2% |
|
-1.8% |
|
+0.3% |
|
|
|
Operating Income Recurring |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group |
5,068 |
|
+4.2% |
|
(318) |
|
- |
|
- |
|
(25) |
|
+11.4% |
|
Impacts in % |
|
|
|
|
-6.6% |
|
- |
|
- |
|
-0.6% |
|
|
|
Gas & Services |
5,271 |
|
+4.1% |
|
(311) |
|
- |
|
- |
|
(24) |
|
+10.8% |
|
Impacts in % |
|
|
|
|
-6.2% |
|
- |
|
- |
|
-0.5% |
|
|
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 the energy impact corresponds to operating income recurring (which is not impacted in absolute value by the energy costs contractually re-invoiced to
|
|
FY 2023 |
Natural gas impact(a) |
Electricity impact(a) |
FY 2023, excluding energy impact |
|||||
Revenue |
Group |
27,608 |
(1,776) |
(514) |
29,898 |
|||||
|
Gas & Services |
26,360 |
(1,776) |
(514) |
28,650 |
|||||
Operating Income Recurring |
Group |
5,068 |
|
|
5,068 |
|||||
|
Gas & Services |
5,271 |
|
|
5,271 |
|||||
Operating Margin |
Group |
18.4% |
|
|
17.0% |
|||||
|
Gas & Services |
20.0% |
|
|
18.4% |
(a) Including the currency impact linked to the considered energy impact.
REPORTED AND RESTATED CO2 EMISSIONS
(in thousands of metric tonnes CO₂ eq.) |
FY 2020 |
FY 2022 |
FY 2023 |
2023/2020 change |
2023/2022 change |
|||||
Scope 1: total direct greenhouse gas emissions (GHG)(a) |
15,345 |
|
16,273 |
|
16,107 |
|
+4.9% |
|
-1.1% |
|
Scope 2: total indirect greenhouse gas emissions (GHG)(a) |
17,184 |
|
23,033 |
|
21,510 |
|
+25.2% |
|
-6.6% |
|
Total emissions as reported(a) |
32,529 |
|
39,306 |
|
37,617 |
|
+15.6% |
|
-4.3% |
|
Total restated emissions(b) |
39,564 |
|
39,464 |
|
37,617 |
|
-4.9% |
|
-4.7% |
(a) « Market based », actual Group emissions including changes in scope having an impact (upward and downward) on CO2 emissions during the year from the effective date.
(b) « Market based », restated to take into account over a full year from 2020 and each subsequent year, the emissions of the assets which correspond to changes in scope and which have a significant impact (upwards and downwards) on CO2 emissions.
OPERATING INCOME RECURRING BEFORE DEPRECIATION AND AMORTIZATION EXCLUDING IFRS 16 AT 2015 EXCHANGE RATE TO CALCULATE THE CARBON INTENSITY
(in millions of euros and thousand of tonnes) |
2015 |
2023 |
2023/2015 change |
|||
(A) Operating income recurring before depreciation and amortization |
4,033 |
7,550 |
|
|||
(B) Currency impact (2015)(a) |
|
(361) |
|
|||
(C) IFRS16 Impact(b) |
|
260 |
|
|||
(A) - (B) - (C) = (D) EBITDA used for Carbon Intensity calculation |
4,033 |
7,651 |
|
|||
(E) CO2 equivalent emissions (Scopes 1 + 2(c)) in thousands of tonnes |
29,413 |
37,617 |
|
|||
Carbon Intensity (E) / (D) |
7.3 |
4.9 |
-33% |
(a) At 2015 exchange rate for countries in hyperinflationary context, their EBITDA being converted at 2023 rate.
(b) The IFRS 16 impact on operating income recurring before depreciation and amortization includes the neutralization of rental expenses, which are then reintegrated into depreciation and amortization and other financial expenses booked in relation to IFRS 16.
(c) Scope 2 emissions calculated from the specific supplies (market-based): the Group hence adopted the methodology recommended by the GHG Protocol.
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.
|
FY 2022 |
FY 2023 |
2023/2022 variation |
|||
(A) Net Profit (Group Share) - As Published |
2,758.8 |
|
3,078.0 |
|
+11.6% |
|
(B) Exceptional and significant transactions after-tax with no impact on OIR |
|
|
|
|
|
|
- Exceptional provisions on industrial assets in |
(575.6) |
|
|
|
|
|
- Exceptional income related to joint-venture take-over in |
205.5 |
|
|
|
|
|
- Provision for risks in Engineering & Construction activity |
(32.8) |
|
|
|
|
|
- Sales of Group stake in Hydrogenics |
|
|
159.4 |
|
|
|
- Impairment of assets held for sale and of other assets identified in particular following a strategic review |
|
|
(345.7) |
|
|
|
- Restructuring costs of |
|
|
(55.7) |
|
|
|
(A) - (B) = Net Profit Recurring (Group Share) |
3,161.7 |
|
3,320.0 |
|
+5.0% |
|
(C) Currency impact |
|
|
(262.0) |
|
|
|
(A) - (B) - (C) = Net Profit Recurring (Group Share) excluding currency impact |
|
|
3,582.0 |
|
+13.3% |
NET PROFIT EXCLUDING IFRS 16 AND NET PROFIT RECURRING EXCLUDING IFRS 16
Net profit excluding IFRS 16:
|
FY 2022 |
FY 2023 |
||
(A) Net Profit as Published |
2,903.9 |
3,188.4 |
||
(B) = IFRS16 Impact(a) |
(15.6) |
(17.8) |
||
(A) - (B) = Net Profit excluding IFRS16 |
2,919.5 |
3,206.2 |
(a) The IFRS 16 impact includes the reintegration of leasing expenses less depreciation and other financial expenses booked in relation to IFRS 16.
Net profit recurring excluding IFRS 16:
|
FY 2022 |
FY 2023 |
||
(A) Net Profit as Published |
2,903.9 |
3,188.4 |
||
(B) Exceptional and significant transactions after-tax with no impact on OIR |
(402.9) |
(266.1) |
||
(A) - (B) = Net Profit recurring |
3,306.8 |
3,454.5 |
||
(C) IFRS16 Impact(a) |
(15.6) |
(17.8) |
||
(A) - (B) - (C) = Net Profit recurring excluding IFRS16 |
3,322.4 |
3,472.3 |
(a) The IFRS16 impact includes the reintegration of leasing expenses less depreciation and other financial expenses booked in relation to IFRS 16.
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.
|
|
FY 2022 |
H1 20223 |
FY 2023 |
ROCE Calculation |
|||||
(in millions of euros) |
|
(a) |
(b) |
(c) |
||||||
Numerator (c) |
Net Profit Excluding IFRS16 |
|
|
|
|
3,206.2 |
|
3,206.2 |
||
Net Finance costs |
|
|
|
|
(265.5) |
|
(265.5) |
|||
Effective Tax Rate (1) |
|
|
|
|
23.6% |
|
|
|||
Net Finance costs after tax |
|
|
|
|
(202.9) |
|
(202.9) |
|||
Net Profit - Net financial costs after tax |
|
|
|
|
3,409.1 |
|
3,409.1 |
|||
Denominator ((a)+(b)+(c))/3 |
Total Equity Excluding IFRS16 |
24,628.5 |
|
24,110.1 |
|
25,117.5 |
|
24,618.7 |
||
Net Debt |
10,261.3 |
|
10,550.4 |
|
9,220.8 |
|
10,010.8 |
|||
Average of (total equity + net debt) |
34,889.8 |
|
34,660.5 |
|
34,338.3 |
|
34,629.5 |
|||
ROCE |
|
|
|
|
|
|
|
9.8% |
(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 for the numerator.
|
|
FY 2022 |
H1 20223 |
FY 2023 |
Recurring ROCE Calculation |
|||||
(in millions of euros) |
|
(a) |
(b) |
(c) |
||||||
Numerator (c) |
Net Profit Recurring Excluding IFRS16 |
|
|
|
|
3,472.2 |
|
3,472.3 |
||
Net Finance costs |
|
|
|
|
(265.5) |
|
(265.5) |
|||
Effective Tax Rate(a) |
|
|
|
|
23.6% |
|
|
|||
Net Finance costs after tax |
|
|
|
|
(202.9) |
|
(202.9) |
|||
Recurring Net Profit Excluding IFRS16 - Net financial costs after tax |
|
|
|
|
3,675.1 |
|
3,675.2 |
|||
Denominator ((a)+(b)+(c))/3 |
Total Equity Excluding IFRS16 |
24,628.5 |
|
24,110.1 |
|
25,117.5 |
|
24,618.7 |
||
Net Debt |
10,261.3 |
|
10,550.4 |
|
9,220.8 |
|
10,010.8 |
|||
Average of (total equity + net debt) |
34,889.8 |
|
34,660.5 |
|
34,338.3 |
|
34,629.5 |
|||
Recurring ROCE |
|
|
|
|
|
|
|
10.6% |
(a) excluding non-recurring tax impact
Calculation of performance indicators - Quarter
|
Q4 2023 |
Q4 2023/2022 Published Growth |
Currency impact |
Natural gas impact |
Electricity impact |
Significant scope impact |
Q4 2023/2022 Comparable Growth |
|||||||
Revenue |
|
|
|
|
|
|
|
|||||||
Group |
6,817 |
|
-8.9% |
|
(435) |
|
(377) |
|
(124) |
|
(3) |
|
+3.7% |
|
Impacts in % |
|
|
|
|
-5.8% |
|
-5.1% |
|
-1.6% |
|
-0.1% |
|
|
|
Gas & Services |
6,472 |
|
-8.5% |
|
(426) |
|
(377) |
|
(124) |
|
(3) |
|
+4.6% |
|
Impacts in % |
|
|
|
|
-6.0% |
|
-5.3% |
|
-1.8% |
|
- |
|
|
BY GEOGRAPHY
Revenue (in millions of euros) |
Q4 2022 |
Q4 2023 |
Published change |
Comparable change |
||||
|
2,727 |
|
2,454 |
|
-10.0% |
|
+5.6% |
|
|
2,700 |
|
2,428 |
|
-10.1% |
|
+4.7% |
|
|
1,388 |
|
1,334 |
|
-3.9% |
|
+1.8% |
|
|
261 |
|
256 |
|
-1.6% |
|
+8.0% |
|
Gas & Services Revenue |
7,076 |
|
6,472 |
|
-8.5% |
|
+4.6% |
|
Engineering & Construction |
138 |
|
100 |
|
-27.1% |
|
-25.4% |
|
Global Markets & Technologies |
266 |
|
245 |
|
-8.3% |
|
-5.7% |
|
GROUP REVENUE |
7,480 |
|
6,817 |
|
-8.9% |
|
+3.7% |
BY WORLD BUSINESS LINE
Revenue (in millions of euros) |
Q4 2022 |
Q4 2023 |
Published change |
Comparable change |
||||
Large industries |
2,473 |
|
1,883 |
|
-23.9% |
|
+1.9% |
|
Industrial Merchant |
2,965 |
|
2,937 |
|
-0.9% |
|
+5.5% |
|
Healthcare |
999 |
|
1,030 |
|
+3.2% |
|
+9.9% |
|
Electronics |
639 |
|
622 |
|
-2.8% |
|
+2.7% |
|
GAS & SERVICES REVENUE |
7,076 |
|
6,472 |
|
-8.5% |
|
+4.6% |
Definitions
Portfolio of 12-month investment opportunities: Cumulative value of investment opportunities taken into account by the Group for a decision within the next 12 months. Industrial projects with a value of more than
Investment decisions: Cumulative value of industrial and financial investment decisions. Growth and non-growth industrial projects, including the renewal of assets, efficiency projects, maintenance and safety, as well as financial decisions (acquisitions).
Investment backlog: Cumulative value of investments for projects that have been decided but not yet started up. Industrial projects of more than
Impact of hyperinflation in
Geographic and segment information
|
FY 2022 |
FY 2023 |
||||||||||
(in millions of euros and %) |
Revenue |
Operating income recurring |
OIR margin |
Revenue |
Operating income recurring |
OIR margin |
||||||
|
10,680 |
|
2,084 |
|
19.5% |
|
10,169 |
|
2,125 |
|
20.9% |
|
|
11,390 |
|
1,577 |
|
13.8% |
|
9,734 |
|
1,723 |
|
17.7% |
|
|
5,608 |
|
1,190 |
|
21.2% |
|
5,410 |
|
1,214 |
|
22.4% |
|
|
895 |
|
211 |
|
23.6% |
|
1,047 |
|
209 |
|
20.0% |
|
Gas & Services |
28,573 |
|
5,062 |
|
17.7% |
|
26,360 |
|
5,271 |
|
20.0% |
|
Engineering and Construction |
474 |
|
44 |
|
9.3% |
|
390 |
|
43 |
|
11.1% |
|
Global Markets & Technologies |
887 |
|
112 |
|
12.6% |
|
858 |
|
143 |
|
16.7% |
|
Reconciliation |
- |
|
(356) |
|
- |
|
- |
|
(389) |
|
- |
|
TOTAL GROUP |
29,934 |
|
4,862 |
|
16.2% |
|
27,608 |
|
5,068 |
|
18.4% |
Consolidated income statement
(in millions of euros) |
FY 2022 |
FY 2023 |
||
Revenue |
29,934.0 |
27,607.6 |
||
Other income |
244.3 |
233.9 |
||
Purchases |
(13,813.0) |
(11,146.8) |
||
Personnel expenses |
(4,963.4) |
(5,099.5) |
||
Other expenses |
(4,074.2) |
(4,045.2) |
||
Operating income recurring before depreciation and amortization |
7,327.7 |
7,550.0 |
||
Depreciation and amortization expenses |
(2,465.9) |
(2,482.0) |
||
Operating income recurring |
4,861.8 |
5,068.0 |
||
Other non-recurring operating income |
262.4 |
242.3 |
||
Other non-recurring operating expenses |
(833.1) |
(738.8) |
||
Operating income |
4,291.1 |
4,571.5 |
||
Net finance costs |
(288.4) |
(265.5) |
||
Other financial income |
32.4 |
15.4 |
||
Other financial expenses |
(130.0) |
(166.1) |
||
Income taxes |
(1,002.3) |
(971.8) |
||
Share of profit of associates |
1.1 |
4.9 |
||
PROFIT FOR THE PERIOD |
2,903.9 |
3,188.4 |
||
- Minority interests |
145.1 |
110.4 |
||
- Net profit (Group share) |
2,758.8 |
3,078.0 |
||
Basic earnings per share (in euros) |
5.28 |
5.90 |
Consolidated balance sheet
ASSETS (in millions of euros) |
|
|
||
|
14,587.2 |
14,194.2 |
||
Other intangible assets |
1,811.4 |
1,631.3 |
||
Property, plant and equipment |
23,646.9 |
23,652.2 |
||
Non-current assets |
40,045.5 |
39,477.7 |
||
Non-current financial assets |
775.5 |
696.7 |
||
Investments in equity affiliates |
185.7 |
180.1 |
||
Deferred tax assets |
232.3 |
225.2 |
||
Fair value of non-current derivatives (assets) |
40.8 |
35.1 |
||
Other non-current assets |
1,234.3 |
1,137.1 |
||
TOTAL NON-CURRENT ASSETS |
41,279.8 |
40,614.8 |
||
Inventories and work-in-progress |
1,961.0 |
2,027.6 |
||
Trade receivables |
3,034.8 |
2,993.7 |
||
Other current assets |
985.4 |
862.7 |
||
Current tax assets |
196.3 |
42.9 |
||
Fair value of current derivatives (assets) |
107.6 |
70.7 |
||
Cash and cash equivalents |
1,911.4 |
1,624.9 |
||
TOTAL CURRENT ASSETS |
8,196.5 |
7,622.5 |
||
ASSETS HELD FOR SALE |
41.7 |
95.1 |
||
TOTAL ASSETS |
49,518.0 |
48,332.4 |
EQUITY AND LIABILITIES (in millions of euros) |
|
|
||
Share capital |
2,879.0 |
2,884.8 |
||
Additional paid-in capital |
2,349.0 |
2,447.7 |
||
Retained earnings |
15,868.0 |
16,063.7 |
||
|
(118.4) |
(152.7) |
||
Net profit (Group share) |
2,758.8 |
3,078.0 |
||
Shareholders' equity |
23,736.4 |
24,321.5 |
||
Minority interests |
835.6 |
721.6 |
||
TOTAL EQUITY |
24,572.0 |
25,043.1 |
||
Provisions, pensions and other employee benefits |
1,991.1 |
2,004.8 |
||
Deferred tax liabilities |
2,465.4 |
2,329.0 |
||
Non-current borrowings |
10,168.8 |
8,560.5 |
||
Non-current lease liabilities |
1,052.2 |
1,046.3 |
||
Other non-current liabilities |
317.8 |
454.7 |
||
Fair value of non-current derivatives (liabilities) |
54.5 |
48.0 |
||
TOTAL NON-CURRENT LIABILITIES |
16,049.8 |
14,443.3 |
||
Provisions, pensions and other employee benefits |
282.4 |
363.8 |
||
Trade payables |
3,782.6 |
3,310.5 |
||
Other current liabilities |
2,215.6 |
2,310.1 |
||
Current tax payables |
260.1 |
236.4 |
||
Current borrowings |
2,003.9 |
2,285.3 |
||
Current lease liabilities |
227.6 |
219.7 |
||
Fair value of current derivatives (liabilities) |
108.6 |
76.2 |
||
TOTAL CURRENT LIABILITIES |
8,880.8 |
8,802.0 |
||
LIABILITIES HELD FOR SALE |
15.4 |
44.0 |
||
TOTAL EQUITY AND LIABILITIES |
49,518.0 |
48,332.4 |
Consolidated cash flow statement
(in millions of euros) |
FY 2022 |
FY 2023 |
||
Operating activities |
|
|
||
Net profit (Group share) |
2,758.8 |
3,078.0 |
||
Minority interests |
145.1 |
110.4 |
||
Adjustments: |
|
|
||
• Depreciation and amortization expense |
2,465.9 |
2,482.0 |
||
• Changes in deferred taxes |
92.6 |
(59.8) |
||
• Changes in provisions |
565.9 |
471.2 |
||
• Share of profit of equity affiliates |
(1.1) |
(4.9) |
||
• Profit/loss on disposal of assets |
(129.9) |
(126.9) |
||
• Net finance costs |
215.4 |
192.9 |
||
• Other non cash items |
142.5 |
214.4 |
||
Cash flow from operating activities before changes in working capital |
6,255.2 |
6,357.3 |
||
Changes in working capital |
(396.8) |
(154.4) |
||
Other cash items |
(48.3) |
60.1 |
||
Net cash flows from operating activities |
5,810.1 |
6,263.0 |
||
Investing activities |
|
|
||
Purchase of property, plant and equipment and intangible assets |
(3,273.0) |
(3,393.4) |
||
Acquisition of consolidated companies and financial assets |
(135.8) |
(103.0) |
||
Proceeds from sale of property, plant and equipment and intangible assets |
92.0 |
63.2 |
||
Proceeds from the sale of subsidiaries, net of net debt sold and from the sale of financial assets |
61.1 |
339.7 |
||
Dividends received from equity affiliates |
13.8 |
14.5 |
||
Net cash flows used in investing activities |
(3,241.9) |
(3,079.0) |
||
Financing activities |
|
|
||
Dividends paid |
|
|
||
• |
(1,410.5) |
(1,581.2) |
||
• Minority interests |
(76.3) |
(85.4) |
||
Proceeds from issues of share capital |
37.7 |
128.8 |
||
Purchase of treasury shares |
(191.5) |
(81.9) |
||
Net financial interests paid |
(236.1) |
(222.5) |
||
Increase (decrease) in borrowings |
(617.7) |
(1,215.6) |
||
Lease liabilities repayments |
(249.0) |
(240.1) |
||
Net interests paid on lease liabilities |
(33.6) |
(39.8) |
||
Transactions with minority shareholders |
(4.0) |
(142.0) |
||
Net cash flows from (used in) financing activities |
(2,781.0) |
(3,479.7) |
||
Effect of exchange rate changes and change in scope of consolidation |
(165.2) |
(61.6) |
||
Net increase (decrease) in net cash and cash equivalents |
(378.0) |
(357.3) |
||
|
2,138.9 |
1,760.9 |
||
|
1,760.9 |
1,403.6 |
The analysis of net cash and cash equivalents at the end of the period is as follows:
(in millions of euros) |
|
|
||
Cash and cash equivalents |
1,911.4 |
1,624.9 |
||
Bank overdrafts (included in current borrowings) |
(150.5) |
(221.3) |
||
|
1,760.9 |
1,403.6 |
Net debt calculation
(in millions of euros) |
|
|
||
Non-current borrowings |
(10,168.8) |
(8,560.5) |
||
Current borrowings |
(2,003.9) |
(2,285.3) |
||
TOTAL GROSS DEBT |
(12,172.7) |
(10,845.8) |
||
Cash and cash equivalents |
1,911.4 |
1,624.9 |
||
TOTAL NET DEBT AT THE END OF THE PERIOD |
(10,261.3) |
(9,220.9) |
Statement of changes in net debt
(in millions of euros) |
FY 2022 |
FY 2023 |
||
Net debt at the beginning of the period |
(10,448.3) |
(10,261.3) |
||
Net cash flows from operating activities |
5,810.1 |
6,263.0 |
||
Net cash flows used in investing activities |
(3,241.9) |
(3,079.0) |
||
Net cash flows used in financing activities excluding changes in borrowings |
(1,927.2) |
(2,041.6) |
||
Total net cash flows |
641.0 |
1,142.4 |
||
Effect of exchange rate changes, opening net debt of newly acquired companies and others |
(248.0) |
150.7 |
||
Adjustment of net finance costs |
(206.0) |
(252.7) |
||
Change in net debt |
187.0 |
1,040.4 |
||
NET DEBT AT THE END OF THE PERIOD |
(10,261.3) |
(9,220.9) |
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
Gas & Services
FY 2023 split of revenue and comparable growth in % |
Total |
|
Industrial Merchant |
Electronics |
Healthcare |
|||||
|
100% |
|
16% |
|
69% |
|
5% |
|
10% |
|
+5.1% |
|
-2.2% |
|
+6.7% |
|
-2.8% |
|
+14.2% |
||
|
100% |
|
37% |
|
32% |
|
2% |
|
29% |
|
+4.2% |
|
-0.9% |
|
+12.3% |
|
N.C. |
|
+5.8% |
||
|
100% |
|
34% |
|
29% |
|
33% |
|
4% |
|
+1.8% |
|
-5.5% |
|
+9.9% |
|
+2.2% |
|
N.C. |
||
|
100% |
|
N.C. |
|
N.C. |
|
N.C. |
|
N.C. |
|
+7.0% |
|
|
|
|
|
|
|
|
||
Gas & Services |
100% |
|
30% |
|
45% |
|
9% |
|
15% |
|
+4.2% |
|
-1.8% |
|
+8.5% |
|
+2.4% |
|
+8.4% |
||
Engineering & Construction |
-15.6% |
|
|
|
|
|
|
|
|
|
Global Markets & Technologies |
-1.0% |
|
|
|
|
|
|
|
|
|
GROUP TOTAL |
+3.7% |
|
|
|
|
|
|
|
|
N.C.: Not communicated.
Operating Income Recurring
Operating margin in %(a) Operating Income Recurring in million euros |
FY 2022 |
FY 2023 |
2023/2022 excluding energy impact |
Operating Income Recurring FY 2023 |
||||
|
19.5% |
|
20.9% |
|
+60 bps |
|
2,125 |
|
|
13.8% |
|
17.7% |
|
+90 bps |
|
1,723 |
|
|
21.2% |
|
22.4% |
|
+150 bps |
|
1,214 |
|
|
23.6% |
|
20.0% |
|
-350 bps |
|
209 |
|
Gas & Services |
17.7% |
|
20.0% |
|
+70 bps |
|
5,271 |
|
Engineering & Construction |
9.3% |
|
11.1% |
|
+180 bps |
|
43 |
|
Global Markets & Technologies |
12.6% |
|
16.7% |
|
+410 bps |
|
143 |
|
GROUP |
16.2% |
|
18.4% |
|
+ 80 pbs |
|
5,068 |
(a) Operating income recurring / revenue as published.
Investments
(in billion euros) |
2023 |
12-month portfolio of investment opportunities(a) |
3.4 |
Investment decisions(b) |
4.3 |
Investment backlog(a) |
4.4 |
Additional contribution to revenue of unit start-ups and ramp-ups(b)(in million euros) |
267 |
(a) At the end of the reporting period.
(b) Cumulated from the beginning of the calendar year until the end of the reporting period.
available in French and English at
www.airliquide.com
.
The slideshow that accompanies this release is available as of
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.
UPCOMING EVENTS
2024 1st Quarter Revenue
Air Liquide is a world leader in gases, technologies and services for industry and healthcare. Present in 72 countries with 67,800 employees, the Group serves more than 4 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 Group’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
______________________________________
1
Net profit recurring excluding exceptional and significant transactions that have no impact on the operating income recurring.
2
Operating cash flow after change in working capital requirement.
3
Based on Net profit recurring.
4
Operating margin excluding energy passthrough impact. Net profit recurring excluding exceptional and significant transactions that have no impact on the operating income recurring.
5
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.
6
See definition in appendix.
7
See definition and reconciliation in appendix.
8
In metric tonnes of scopes 1 and 2 CO2-equivalent, “market based”, restated to take into account over a full year from 2020 and each subsequent year, the emissions of
the assets which correspond to changes in scope and which have a significant impact (upwards and downwards) on CO2 emissions.
9
Lost-time frequency rate for Group employees and temporary workers. Number of accidents with at least one day's absence from work per million hours worked.
10
See definition in Appendix.
11
See definition in appendix.
12
For more information, see explanation in appendix.
13
Mainly non-deductible provisions on activities in
14
See definition and reconciliation in appendix.
15
Including transactions with minority shareholders and dividends received from equity affiliates.
16
See definition and reconciliation in the appendices.
17
In metric tonnes of scopes 1 and 2 CO2-equivalent, “market based”, restated to take into account over a full year from 2020 and each subsequent year, the emissions of
the assets which correspond to changes in scope and which have a significant impact (upwards and downwards) on CO2 emissions.
18
Electrical grid residual emission factors. Note that the calculation of scope 2 emissions from electrical network consumption is based on available data and therefore from the previous year, in this case 2022 for 2023 emissions.
19
Lost-time frequency rate for Group employees and temporary workers. Number of accidents with at least one day's absence from work per million hours worked.
20
Net profit recurring excluding exceptional and significant transactions that have no impact on the operating income recurring.
21
Cash Flow from Operations after changes in working capital requirement.
22 Based on Net profit recurring.
23 Operating margin excluding energy passthrough impact. Net profit recurring excluding exceptional and significant transactions that have no impact on the operating income recurring.
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