Air Liquide highlights from recent weeks
To see all press releases, click here
The first-half results published on July 30 demonstrated the Group’s resilience in revenue and net profit in a context of heavy economic slowdown, characterized by very contrasted sector and geographic demand. Large Industries and Healthcare in particular remained on an upward trend, consolidating Air Liquide’s position as leader.
Group revenue in the first half of 2009 was €5,937 million, a slight decrease compared to an especially strong first half 2008. Moreover, the very strong resilience in Group margins at 15%, and net profit almost at the same level as first half 2008 contributed to sustaining the Group’s profitability.
These results can be attributed to the robustness of the Group’s business model with balanced sector and geographic distribution, in addition to the management measures taken for 2009 and deployed in the context of the ALMA strategic program. For instance, we boosted our cost reduction program by increasing the objective for the current year to €300 million from €250 million. By the end of this half year, we had already reached the midpoint (€153 million). We also ensured strict cash management and maintained our investment projects within a €1.6 billion annual budget to reduce our level of indebtedness.
As concerns the levels of activity, the positive signs were more pronounced at the end of the half-year, particularly in emerging economies and in sectors such as chemicals in the United States and Electronics. Large Industries, buoyed by start-ups and rampups in China, Europe and the Middle East, and Healthcare, especially in the homecare sector, are still growing. Electronics is progressively picking up after significant fall-offs in volume. In Industrial Merchant, the volumes have now stabilized, albeit at a low level. The number of investment projects entering the portfolio of opportunities is again on the rise.
In this context, and as a result of the momentum generated by the ALMA program, we maintain our objective for 2009, of revenue and net income to be close to the 2008 levels.
Air Liquide remains confident in the robustness of its growth model thanks to the structural potential of its five growth drivers which are Energy, Environment, Emerging Economies, Health and High-Tech. The Group will continue to invest in them to strengthen its strategic positioning and remain in the lead.
Air Liquide is thus developing solutions to enable companies to improve their energy performance or contribute to protecting the environment by curbing polluting emissions. High-Tech continues to progress, notably in electronics and photovoltaics. Health is also a growth market, especially in extended life expectancy services.
Dear Shareholders, thanks to the sturdiness of its activities and the dedication of its collaborators, the Group has the assets necessary to attenuate the effects of the economic downturn on its activity and protect its major balances.
With your support and trust, your company will be able to continue to grow and ensure its future.
Benoît Potier, Chairman and CEO
The performance of the 1st half of 2009 is in line with our expectations, in terms of efficiency, cash generation and level of indebtedness. It confirms Air Liquide’s resilience in a context of slow demand. As concerns the levels of activity, the positive signs were more pronounced at the end of the half-year, but some segments remain affected by weak customer demand. In this context and as a result of the momentum generated by the ALMA program, we maintain our objective for 2009, of revenue and net income to be close to the 2008 levels. The Group remains confident in the robustness of its growth model thanks to the structural potential of its five growth drivers which are Energy, Environment, Emerging Economies, Health and High-Tech. Air Liquide will continue to invest in them to strengthen its strategic positioning. Benoît Potier, Chairman and CEO
| Half year results |
program states Air Liquide’s ambition: to be the recognized leader of its industry. The Group’s development is based on five growth drivers: Energy, the Environment, Emerging economies, Health and High-Tech.A bright future The solar energy captured by the Earth in one hour could provide for the world’s energy needs for one year. |
 |  | |
| Air Liquide is the world leader in gases and services for the photovoltaic industry. It supplies over half of the ten major manufacturers of crystalline silicon cells – including the three largest production sites in the world (QCells in Germany, Suntech in China, REC in Singapore) – as well as the majority of the leaders on the thin film market (Sunfilm, Bosch, Sharp, Sunwell, Heliosphera). Today, this market represents 50 million euros in annual revenue for Air Liquide, ten times greater than three years ago. The growth outlook for this sector, factoring in a substantial rise in gas consumption, should allow this figure to double in two years. | ||
 |  |
| Eleni Despotou Deputy Secretary General and Policy Director of the European Photovoltaic Industry Association (EPIA) |
Developing clean energy alternatives is a vital issue today. Where does photovoltaic technology fit in?
With reserves of fossil resources on the verge of depletion, the energy sector is undergoing a complete change. The European Union is strongly urging the deployment of renewable energies, and in 2009, set a binding 20% target objective for renewable energy share in the European energy mix by 2020. In this context, photovoltaic technology has incredible potential for development both in urban and rural environments, on buildings or in fields, in on-grid or off-grid systems.
The photovoltaic sector has been gaining considerable momentum in recent years. What are the prospects for development in the medium term?
The production of photovoltaic electricity from solar energy has developed at an extremely rapid pace. In less than ten years, cumulative photovoltaic installed capacity in the world has gone from 1,428 MW in 2000 to 14,730 MW in 2008. It is expected to become competitive as soon as 2010 in certain areas of southern Europe and by 2020 in all of Europe. A recent study (SET for 2020) demonstrates that by 2020, the sector could represent up to 12% of the European demand in electricity, which translates into some 400 GW of installed capacity and 196 million tonnes of CO2 avoided per year. Therefore, the prospects for development are clearly bright for the photovoltaic industry.
With over 200 member companies, the EPIA (European Photovoltaic Industry Association) is the world’s largest industry association devoted to the solar photovoltaic electricity market (www.epia.org).
Italy, Greece, Spain: already 100 years!Historic geographical diversity for a Group present in 75 countries worldwide
In 1909, the Group was welcomed by Italy, Greece and Spain. These three adventures that began as Società Italiana Ossigeno ed Altri Gas, To Οξυγόνο AEBA (Greek for “oxygen”) and Sociedad Española de Oxigeno, all shared the same starting point: the oxygen molecule. The production of oxygen and nitrogen according to the processes developed by George Claude, one of the two founders of Air Liquide, was very often associated with acetylene production. Today, Air Liquide is the undisputed leader in industrial gases and services in each of these three countries. The Healthcare activity of the local subsidiaries has also seen steady growth in the past several years. The three centenaries have sparked genuine interest and rallied the energy of Air Liquide’s employees, thus strengthening team unity and the proud feeling of belonging to the Group. Initiatives have been numerous and diverse. In Italy a book was published on Air Liquide’s one hundred years of presence in the country, whereas in Greece, for example, employees were invited to a national celebration that brought together all activities and regions. In Spain, a series of events will be held to highlight the country’s development of activities that juxtapose tradition and innovation. Each of Air Liquide’s three subsidiaries runs its own website. Discover Spain (Spanish only), Italy (Italian only) and Greece. |
SHAREHOLDERS TAKE THE FLOOR
For the third straight year, Air Liquide renewed its technical partnership for the Grand Fountain Display, a water and lights show held in the gardens of the Versailles Palace (France). The Group provided liquid gases and the technical operating expertise to add a magical touch to the playing fountains and groves specially showcased and brought to life through special effects. This year, the Group held a lottery on the Internet that met with great success, drawing over 20,000 entries. At nightfall, the winners visited the Royal Garden of Louis XIV, transformed into a land of astonishing sights and sounds, as French baroque masterpieces provided the musical backdrop for the displays. Some even had the opportunity to visit the apartments of the Versailles Palace, where they could admire the Gallery of Mirrors and the salons of Louis XIV and Marie-Antoinette bathed in the glow of the setting sun. Through this event, the strong presence of Air Liquide gases in our daily lives, in their various forms, was underlined. Air Liquide heartily thanks all those who participated.
FROM US TO YOU Shareholder Services answers your questionsHow can I give shares as Christmas gifts? I’ve heard about the loyalty bonus? Am I eligible? For more information on inheritance and gifts, click here
For more information on the loyalty bonus, click here
|
In figures
As its awards prove, Air Liquide sets the highest standards of excellence in shareholder democracy and corporate governance, year after year. Best General Shareholders’ Meeting of the Year Grand Prize for Corporate Governance Award for Shareholder Democracy 2008 Strategist of the Year Calendar
December 3, 2009 |
Turning sunlight into energy
Interview
Created in 1902, the Group began its global expansion only four years later in Belgium and continued into Japan by 1907. At this time, Air Liquide’s international presence was underpinned by the expansion of metal welding, one of the main uses for oxygen.
“This magnificent evening was the opportunity for us to discover Air Liquide’s activities in a new light.”
