Editorial

Solid performance and major initiatives in 2015

Editorial with Benoît Potier,
Chairman and CEO

Your Group achieved a solid performance, delivering once again an increase in revenue, operating margin and net profit, in the context of slower global growth in 2015. Business growth was driven by momentum in Healthcare and Electronics, and by the contribution of new start-ups in Large Industries. It was also driven by Europe’s progressive recovery and by the developing economies. Operating margin rose, thanks to continuous efforts on cost. Net profit increased to €1.76 billion, thus allowing us to propose the payment of an increased dividend for 2016.

The signature of a merger agreement in November 2015 for the acquisition of Airgas in the USA was the major initiative of the past year for your Group. The industrial and market rationale of this initiative is very strong and offers significant growth prospects. Once the acquisition is finalized*, Air Liquide will have a stronger presence in the United States, the first industrial gas market in the world. We will benefit from the unrivalled regional coverage of Airgas in this country, as well as from its e-commerce platforms and telesales serving over a million customers. This acquisition will strengthen the global leadership of Air Liquide and will create value over the long term.

The new issue of your newsletter also puts the spotlight on innovation, such as, for example, the Cryocap^TM project, which is a world technology premiere. It also presents our solutions to protect the environment, and notably including actions taken by the Group as part of the COP21.

The 2016 annual General meeting and post-General Meetings are excellent opportunities for sharing views and for presenting you the strategy of your Group. I hope to see many of you there in May.

Thank you for your loyalty and happy reading!

*Following the approval process of the authorities.

Key fact
Merger agreement signed for the acquisition of Airgas

In November 2015, Air Liquide signed a merger agreement for the acquisition of Airgas, the leading supplier of packaged gases and associated products in the United States. Airgas shareholders approved the acquisition project at a special General Meeting on February 23, 2016. Together, Air Liquide and Airgas will boast two highly complementary businesses, allowing them to offer customers a new and even more innovative set of products and services with greater added value, both in North America and across the world.

Important: the transaction will only take place once approval has been received from the regulatory bodies, and subject to certain conditions being fulfilled.

Go further

For more information, visit our website airliquide.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This document contains certain statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. L’Air Liquide S.A. (“Air Liquide”) has identified some of these forward-looking statements with words like “believe,” “may,” “could,” “would,” “might,” “possible,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” or “continue,” the negative of these words, other terms of similar meaning or the use of future dates. Forward-looking statements in this document include without limitation statements regarding the expected timing of the completion of the transactions described in this document, Air Liquide’s operation of the business of Airgas, Inc. (“Airgas”) following completion of the contemplated transactions, and statements regarding the future operation, direction and success of Airgas’ businesses. Such statements are qualified by the inherent risks and uncertainties surrounding future expectations generally, and actual results could differ materially from those currently anticipated due to a number of risks and uncertainties. Risks and uncertainties that could cause results to differ from expectations include: uncertainties as to the timing of the contemplated transactions; the possibility that the closing conditions to the contemplated transactions may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant a necessary regulatory approval; the effects of disruption caused by the announcement of the contemplated transactions making it more difficult to maintain relationships with employees, customers, vendors and other business partners; the risk that stockholder litigation in connection with the contemplated transactions may affect the timing or occurrence of the contemplated transactions or result in significant costs of defense, indemnification and liability; other business effects, including the effects of industry, economic or political conditions outside of the control of the parties to the contemplated transactions; transactions costs; actual or contingent liabilities; and other risks and uncertainties discussed in Airgas’ filings with the U.S. Securities and Exchange Commission (the “SEC”), including the “Risk Factors” sections of Airgas’ most recent annual report on Form 10-K. You can obtain copies of Airgas’ filings with the SEC for free at the SEC’s website (www.sec.gov). Air Liquide does not undertake any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law. All forward-looking statements in this announcement are qualified in their entirety by this cautionary statement.

Solid performance and major initiatives in 2015

Key fact Merger agreement signed for the acquisition of Airgas

Key fact
Merger agreement signed for the acquisition of Airgas