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Page 1: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

1st Quarter 2009Consolidated Revenue

April 28, 2009

Klaus Schmieder, Senior Executive Vice-PresidentPierre Dufour, Senior Executive Vice-PresidentFabienne Lecorvaisier, Chief Financial Officer

Page 2: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

2Q1 2009 Consolidated Revenue – April 28, 2009

1st Quarter 2009 :

� Performance confirms the resilience of the Group in a weak industrial production environment …

� … marked by strong disparities between regions, sectors, applications and products

� Management actions have been strengthened and adapted to current activity levels

� The portfolio remains solid and a majority of the start-ups have been confirmed for 2009-2010

Page 3: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

3Q1 2009 Consolidated Revenue – April 28, 2009

Group revenue resilient

2 000

2 200

2 400

2 600

2 800

3 000

3 200

3 400

Q1 2008 Comparablegrowth

Natural gas Currency Q1 2009

- 3.4%comparable

In €m

- 62 + 73

0

- 3.0% as published

- 1053 0912 997

Page 4: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

4Q1 2009 Consolidated Revenue – April 28, 2009

3 091

2 649

189

253

Sales

Q1 08

- 3.0%

-- 3.8%

-+ 30.4%

-- 20.0%

Q1 09/08as published

- 3.4%

-- 4.2%

-+ 31.1%

-- 20.8%

Q1 09/08comparable*

2 548

247

202

Gas & Services

Engineering & Construction

Other activities

2 997

Sales

Q1 09

Group Total

In €m

* Comparable : excluding impact of currency and natural gas

Contribution by activity

Page 5: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

5Q1 2009 Consolidated Revenue – April 28, 2009

Still strong disparities in different markets

0

25

50

75

100

sept. 08 oct. 08 nov. 08 dec. 08 jan. 09 feb. 09 mar. 09

Base 100

0

25

50

75

100

nov.08

dec.08

jan.09

feb.09

mar. 09

Hydrogen in France : refining

Base 100

0

25

50

75

100

oct. 08 nov. 08 dec. 08 jan. 09 feb. 09 mar. 09

0

25

50

75

100

june.08

july.08

aug.08

sept.08

oct. 08 nov.08

dec.08

jan. 09 feb. 09 mar.09

Specialty gases in Taiwan : memory chips

Oxygen in Canada : flat steel

Base 100

Base 100

Nitrogen on Texas pipeline : chemicals

Maintenance stoppages

Page 6: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

6Q1 2009 Consolidated Revenue – April 28, 2009

80

85

90

95

100

Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09

Two distinct economic cycles

+

-

20102009

Chemicals for Cosmetics

40

60

80

100

Sept. 08 Oct. 08 Nov. 08 Dec. 08 Jan. 09 Feb. 09 Mar. 09

Liquid Argon volumes per working day Japan

Consumption Cycle

Investment Cycle

Source : Coe-Rexecode March 2009

Base 100

Base 100

Page 7: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

7Q1 2009 Consolidated Revenue – April 28, 2009

- 26.5%

18.7%

7.7%7.2%4.9%

-25%

-15%

-5%

5%

15%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009

-7.7%

3.4%

6.9%6.5%6.5%

-10%

-5%

0%

5%

10%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009

2.2%

15.5%16.0%17.2%

10.6%

0%

5%

10%

15%

20%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009

Growth continues in 50% of Gas & Services activities

42%33%

17%8%

Large Industries:

Electronics:

Industrial Merchant:

5.4%5.7%7.0%

9.3%8.2%

0%

5%

10%

15%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009

Healthcare:

Mid-term revenue objectives

All figures represent comparable growth : excluding impact of currency and natural gas

Page 8: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

8Q1 2009 Consolidated Revenue – April 28, 2009

Europe : Stable due to business mix and start-ups

� Industrial Merchant:

�Bulk : impact of autos and materials

�Cylinders : more resilient activity,especially in Northern Europe

�Positive pricing effect : product/client mix + 2008 pricing campaign

�Large Industries:

�Contribution of start-ups

�Marked decrease of O2 volumes (chemicals, steel)

�Resilience of H2 (refining)

�Contract strength confirmed

�Healthcare:

�Solid growth of homecare

+5.1%

-8.8%

+8.1%

-10% -5% 0% 5% 10%

3%

36%

37%

24%

Q1 09 breakdown

Gas & Services revenue: €1 471mQ1 09/08 comparable: -0.4%*

Industrial Merchant

Large Industries

Healthcare

* Excluding impact of currency and natural gas

Page 9: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

9Q1 2009 Consolidated Revenue – April 28, 2009

Americas : Resilience of prices and contracts

�Industrial Merchant:

� Strong decrease of volumes in the USA

� Good demand for fracking

� Growth in Latin America

� Positive impact of pricing campaigns across the region

�Large Industries:

� Weak O2 and H2 volumes for chemicals

� Resilience of N2 and H2 for refining

� Good contribution from Cogeneration in Canada

�Healthcare:

� Strong growth in Latin America

� New Homecare contracts in Canada

+6.4%

-4.3%

-4.9%

-10% -5% 0% 5% 10%

7%

50%

34%

9%

Q1 09 breakdown

Gas & Services revenue: €579mQ1 09/08 comparable: -4.1%*

Industrial Merchant

Large Industries

Healthcare

* Excluding impact of currency and natural gas

Page 10: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

10Q1 2009 Consolidated Revenue – April 28, 2009

Asia : Decline of export-led activities

-9.5%

-13.4%

-30% -25% -20% -15% -10% -5% 0%

28%45%

21%

6%

Gas & Services revenue: €447mQ1 09/08 comparable: -18.2% *

Industrial Merchant

Large Industries

Electronics-32.8%

�Industrial Merchant:

�Significant decrease of industrial production index in Japan

�Dynamic demand in China

�Growth in Australia

�Large Industries:

�Volume declines across the region

�China start-ups providing growth

�Electronics:

�Severe decline in all countries

Q1 09 breakdown

* Excluding impact of currency and natural gas

Page 11: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

11Q1 2009 Consolidated Revenue – April 28, 2009

Engineering & Construction sales

189

315

253

323

247

0

100

200

300

400

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009

In €m E&C third-party sales

� Total order in-take at 238 million euros, trending down

�New orders from Asia

�Slowdown of projects within mature economies

� Expected 2009 third-party sales at €1bn

Page 12: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

12Q1 2009 Consolidated Revenue – April 28, 2009

Cyclical sectors

- 5 to - 2%

Defensive sectors and pricing

+2 to +3%

Start-ups& acquisitions

+3 to +4%

Forex

+3%Nat Gas

- 3%

+ + +

� 2 potential scenarios

� Impact on Group sales in 2009:

Growth in 2009

�Extended crisis:

�Cyclical sectors at -30%

�GDP mature economies -1 to -2%*

�GDP emerging economies +2 to +3%

�Partial recovery in H2:

�Cyclical sectors at -10%

�GDP mature economies 0%

�GDP emerging economies +4%

� Contrasting semesters

* Base : Coe-Rexecode December 2008

Reminder

Reminder of scenarios presented in February 2009

Page 13: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

13Q1 2009 Consolidated Revenue – April 28, 2009

1st Quarter 2009

� Sharp slowdown in cyclical sector volumes (> -30%)� Weak economic activity impacting defensive sectors (< -10% in

volume)� Start-ups and acquisitions in line

� Group activity in Q1 :

Cyclical sectors

- 7% +

Forex

+2%

Nat gas

-2%

Defensive sectors & pricing

0% +Start-ups

& acquisitions

+ 4% +

Page 14: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

14Q1 2009 Consolidated Revenue – April 28, 2009

Management actions strengthened and adapted

� Cash

�Priority given to cash

�No new customer incidents since January

�2008 provisions sufficient

�Debt held at year end level

� Costs

�Gross margin maintained

�Acceleration of cost reduction program to reach 300 million euros for the full year

�Headcount down

� Capex

�Strict selectivity and envelope confirmed at €1.6bn for the year

2009

Page 15: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

15Q1 2009 Consolidated Revenue – April 28, 2009

Solid portfolio and confirmation of start-ups

DecisionsPortfolio

CapexStart-ups and

Ramp-ups

LT portfolio maintained

Decisions delayed

2009 objective of €1.6bn

maintained

Majority of start-ups confirmed :

36 expected in 2009-2010

New projects

Mid and long-term Short-term

> Cancellations

Page 16: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

16Q1 2009 Consolidated Revenue – April 28, 2009

Outlook

« Despite weak global industrial production in the 1s t quarter 2009, Group revenue was broadly resilient due to the soli d mix of activities across different markets and the recent start-up of new units. This reflects the robustness of the business model.

The positive signs first observed at the end of the quarter do not yet provide indications of a trend. Thus, the recovery of our markets could take longer. Under these conditions, we have reposit ioned our objective for the whole of 2009 for revenue and net income to be close to the 2008 levels. We have also strengthened our cash managemen t and increased our cost reduction efforts, for this year, to 300 m illion euros.

In the medium-term, the Group remains confident in the structural growth potential of the Energy, Environment, Health and hi gh-tech markets as well as the Emerging Economies. The portfolio of opp ortunities remains solid and a large majority of the start-ups for 200 9-2010 have been confirmed. »

Page 17: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

Appendices

Page 18: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

18Q1 2009 Consolidated Revenue – April 28, 2009

Gas & Services revenue

Comparable growth of Gas & Services revenue*

* excluding impact of currency and natural gas

-5%

0%

5%

10%

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

+5.3%+6.3%

+7.9%+9.1% +9.1%

+9.9% +9.6%

+7.9%

- 4.2%

Page 19: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

19Q1 2009 Consolidated Revenue – April 28, 2009

Gas & Services quarterly growth

Comparablegrowth

CurrencyNatural gasPublished growth

+9.1%- 3.2%+2.1%+8.0%Q1 2008

+9.9%- 4.5%+4.1%+9.5%Q2 2008

+9.6%- 3.1%+4.6%+11.1%Q3 2008

+7.9%+3.1%+1.4%+12.4%Q4 2008

- 2.3% +2.7% - 4.2%- 3.8%Q1 2009

Page 20: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

20Q1 2009 Consolidated Revenue – April 28, 2009

Geographical breakdown of sales

Q1 2009 Gas & Services revenue : €2 548m

2%

18%

23%57%

Europe

Americas

Asia-Pacific

Middle-East & Africa

Page 21: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

21Q1 2009 Consolidated Revenue – April 28, 2009

-20.8%-20.0%202239233270253Other Activities

-4.1%-8.8%579667683675635Americas

-0.4%-0.7%1 4711 6281 5051 4911 481Europe

2 997

247

2 548

51

447

Q1 09

-18.2%-8.9%575517482491Asia-Pacific

+24.5%+22.3%54554642Middle East & Africa

-4.2%-3.8%2 9242 7602 6942 649Gas & Services

+31.1%+30.4%323254315189Engineering & Construction

3 486

Q4 08

3 091

Q1 08

-3.4%

Q1 09/08 Comparable

-3.0%

Q1 09/08as published

3 2473 279Total Group

Q3 08Q2 08Revenue in €m

Sequential analysis of sales (1)

Page 22: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

22Q1 2009 Consolidated Revenue – April 28, 2009

-20.8%-20.0%202239233270253Other Activities

2 997

247

2 548

435

206

836

1 071

Q1 09

-7.7%-5.5%1 1851 1541 1361 133Industrial Merchant

+2.2%-2.5%986931901857Large Industries

-26.5%-16.0%305257237245Electronics

+5.4%+5.3%448419420414Healthcare

-4.2%-3.8%2 9242 7602 6942 649Gas & Services

+31.1%+30.4%323254315189Engineering & Construction

3 486

Q4 08

3 091

Q1 08

-3.4%

Q1 09/08 Comparable

-3.0%

Q1 09/08as published

3 2473 279Total Group

Q3 08Q2 08Revenue in €m

Sequential analysis of sales (2)

Page 23: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

23Q1 2009 Consolidated Revenue – April 28, 2009

Impact of currency and natural gas

Average exchange rates for the period

(84)

(64)

+3

(2)

(21)

Q1 08

(115)

(73)

(9)

(1)

(32)

Q2 08

+93

+55

(15)

+74

(21)

Q4 08

+73

+54

(9)

+58

(30)

Q1 09

(43)

(12)

0

(25)

€/USD

€/CAD

€/JP¥

Others

(80)

Q3 08

Total

In €m

+36 (62)+114+100+51Natural gas impact

1.32

1.59

126.2

Q4 08

1.30

1.62

121.8

1.50

1.56

161.5

1.56

1.58

163.4

1.50

1.50

157.7

€/USD

€/CAD

€/JP¥

Q1 08 Q2 08 Q3 08 Q1 09

Page 24: Air Liquide Q1 2009 sales EN...Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Healthcare: Mid-term revenue objectives ... Q1 2009 Consolidated Revenue – April 28, 2009 Solid portfolio and

For further information, please contact:

Investor Relations

Virginia Jeanson ���� + 33 (0)1 40 62 57 37

Annie Fournier ���� + 33 (0)1 40 62 57 18

www.airliquide.com

Corporate Communications

Anne Lechevranton ���� + 33 (0)1 40 62 50 93

Corinne Estrade-Bordry ���� + 33 (0)1 40 62 51 31

Corporate headquarters : 75, Quai d’Orsay

75321 Paris Cedex 07Tel : +33 (0)1 40 62 55 55

RCS Paris 552 096 281

L’Air Liquide S.A.Corporation for the study and application of proces ses developed by Georges CLAUDE with registered capital of 1 435 211 387,50 euros