Air Liquide: 2021 Results: An Excellent Year Across All Performance Criteria
Air Liquide reported robust FY 2021 results with total revenue of €23.3 billion, marking a 13.9% increase, and 8.2% growth on a comparable basis. Gas & Services revenue reached €22.3 billion, up 7.3%. The operating income increased to €4.16 billion, with a margin of 17.8%. Net profit rose 5.6% to €2.57 billion. The proposed dividend is €2.90 per share, a 5.5% increase. Key growth drivers included strong demand across regions, particularly in Asia and the Americas, and successful adaptation to energy price volatility. The company is targeting carbon neutrality by 2050.
- Total revenue increased by 13.9% to €23.3 billion.
- Gas & Services revenue grew by 7.3% to €22.3 billion.
- Operating income rose to €4.16 billion, up 12.7% on a comparable basis.
- Net profit increased by 5.6% to €2.57 billion.
- Proposed dividend up by 5.5% to €2.90 per share.
- Cash flow from operations remained high at 24.5% of sales.
- All business segments showed revenue growth, with notable performance in Engineering & Construction (up 55.4%).
- Recurring Return on Capital Employed (ROCE) improved to 9.3%.
- Operating margin declined by 70 basis points to 17.8% due to energy cost impacts.
- Reported currency and significant scope impacts negatively affected revenue growth.
Air Liquide (Paris:AI):
|
FY 2021 |
2021/2020 as
|
2021/2020
|
|||
Group Revenue |
23,335 |
+ |
+ |
|||
of which Gas & Services |
22,267 |
+ |
+ |
|||
Operating Income Recurring (OIR) |
4,160 |
+ |
+ |
|||
Group OIR Margin |
|
-70 bps |
|
|||
Variation excluding energy (b) |
|
+70 bps |
|
|||
Gas & Services OIR Margin |
|
-80 bps |
|
|||
Variation excluding energy (b) |
|
+80 bps |
|
|||
Net Profit (Group share) |
2,572 |
+ |
|
|||
Net Profit Recurring (Group share) (c) |
2,572 |
+ |
|
|||
Variation Net Profit Recurring (Group share) excluding currency impact (b) |
|
+ |
|
|||
Earnings per Share (in euros) |
5.45 |
+ |
|
|||
2021 proposed Dividend per share (in euros) |
2.90 |
+ |
|
|||
Cash flow from operating activities before changes in net working capital |
5,292 |
+ |
|
|||
Net Debt |
|
|
|
|||
Return on Capital Employed after tax - ROCE |
|
+30 bps |
|
|||
Recurring ROCE (d) |
|
+70 bps |
|
(a) Change excluding the currency, energy (natural gas and electricity) and significant scope impacts, see reconciliation in appendix. (b) See reconciliation in appendix. (c) Excluding exceptional and significant transactions that have no impact on the operating income recurring, see reconciliation in appendix. (d) Based on the recurring net profit, see reconciliation in appendix.
Commenting on 2021,
“In 2021, the Group achieved an excellent performance, in spite of the ongoing pandemic and the strong inflationary pressures mainly related to the sharp increase in energy prices in the second half.
Air Liquide’s teams have stepped up in all areas, whether in response to the Covid-19 crisis, the significant acceleration in inflation or the energy transition challenge, once again demonstrating their strong reactivity and adaptability. We have taken action in the here and now, while at the same time preparing the future. Our investment momentum has been sustained, with the signature of numerous agreements in particular related to the energy transition.
The Group has delivered another year of profitable growth: Sales reached
All activities improved markedly: Gas & Services, which represents
The Group further improved its operating margin thanks to an inflation-adapted pricing policy, significant efficiencies of
Air Liquide’s balance sheet has been further strengthened. Recurring ROCE reached
With a business model that combines financial and extra-financial performance, Air Liquide is particularly well positioned in the markets of the future. In response, notably to the major challenges of climate change and the energy transition, the Group offers a wide range of solutions based on hydrogen and technologies to decarbonize industry. Contributing to a sustainable future is at the heart of our activity and of our strategy.
In 2022, assuming no significant economic disruption, Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates.(2)”
2021 Highlights
-
Corporate:
-
Announcement of a plan for the succession of
Benoît Potier as Chief Executive Officer of Air Liquide, coupled with the implementation of new governance. Following the recommendations of theAppointments and Governance Committee , the Board of Directors, which is due to meet at the close of the 2022 General Meeting, will be called upon to renew Benoît Potier’s term of office as Chairman of the Board of Directors and to appointFrançois Jackow to succeed him as Chief Executive Officer with effect fromJune 1, 2022 .
-
Announcement of a plan for the succession of
-
Sustainable development:
-
Presentation of ambitious sustainable development objectives, based on three pillars:
-
ACT for a low-carbon society: Air Liquide has set itself the goal of achieving carbon neutrality by 2050 and a
33% reduction in its CO2 emissions by 2035 with reduction starting around 2025, while developing a wide range of low-carbon solutions for its industrial customers so that they can reduce their own emissions. - Work toward better Healthcare by improving the quality of life of patients with chronic diseases in mature economies and by facilitating access to medical oxygen for rural communities in low- and middle-income countries.
- Trust as the base to engage with our employees and to adhere to best governance practices.
-
ACT for a low-carbon society: Air Liquide has set itself the goal of achieving carbon neutrality by 2050 and a
-
Completion of the Group’s first green bond issue, which raised
500 million euros dedicated to several sustainable development projects, notably in hydrogen and biogas. -
Partnership with Rothschild & Co and the
Solar Impulse Foundation to launch a200-million-euro investment fund to support the development of high-potential SMEs working on environmentally friendly solutions.
-
Presentation of ambitious sustainable development objectives, based on three pillars:
-
Low-carbon hydrogen:
-
Numerous partnerships and initiatives to develop low-carbon hydrogen:
-
Launch of the world’s largest clean hydrogen infrastructure fund with a potential of
1.5 billion euros in partnership with TotalEnergies, VINCI and several international companies. -
Partnership with Airbus and
VINCI Airports to develop the use of hydrogen and accelerate decarbonization in the aviation sector. - Memorandum of Understanding signed with Airbus and Groupe ADP in preparation for the arrival of hydrogen at airports by 2035 as part of the development of hydrogen-powered aircraft.
-
Partnership with Eni aimed at investing in the development of the necessary infrastructures (logistics chain, refueling stations) for the expansion of hydrogen mobility in
Italy . - Joint development agreement signed with Faurecia to design and produce on-board liquid hydrogen storage systems for heavy-duty vehicles.
-
Memorandum of Understanding with IVECO to accelerate the development of hydrogen heavy-duty mobility in
Europe , through the development of hydrogen heavy-duty vehicles and the roll-out of hydrogen refueling stations. -
Increased support to the
Energy Observer , becoming a main partner, for four years, of this laboratory vessel that demonstrates the key role of hydrogen in the energy transition.
-
Launch of the world’s largest clean hydrogen infrastructure fund with a potential of
-
Low-carbon hydrogen production:
-
Memorandum of Understanding signed with Siemens Energy to develop high-capacity electrolyzers in
Europe . - Acquisition of H2V Normandy, renamed Air Liquide Normand’Hy, aimed at building an electrolyzer of at least 200 MW.
-
Construction project in
Germany of an industrial-size renewable hydrogen production unit that will be linked to the existing local Air Liquide pipeline infrastructure. -
Ramping up of the world’s largest renewable hydrogen production unit based on membrane electrolysis in
Canada , with a capacity of 20 MW. - Cooperation project with TotalEnergies to decarbonize hydrogen production on the TotalEnergies platform in Normandy.
-
Memorandum of Understanding signed with Siemens Energy to develop high-capacity electrolyzers in
-
Numerous partnerships and initiatives to develop low-carbon hydrogen:
-
Industry & decarbonization:
-
Long-term power purchase agreements for renewable energy in
Belgium andthe Netherlands to reduce the carbon footprint of our production plants. -
Finalization of the acquisition of Sasol’s 16 Air Separation Units (ASUs) in
Secunda ,South Africa , with the aim of reducing CO2 emissions linked to oxygen production by30% to40% over the next 10 years. -
In
Kazakhstan , acquisition and integration by Air Liquide Munay Tech Gases (ALMTG), a75% subsidiary of Air Liquide, of the industrial gas production plants at theAtyrau refinery . ALMTG will operate these production plants for KazMunayGas under a long-term contract. -
Long-term investments and contracts to supply industrial gases. In
China with BOE, a world leader in flat panels and an Internet of Things specialist, as well as a major producer of flash memory chips, and in steel withShagang Group . InRussia with the Severstal steel company. Together with the chemicals company BASF, for its new battery materials site inGermany , and inSouth Korea to increase hydrogen and carbon monoxide volumes by20% in the Yeosu industrial complex. - Memorandum of Understanding with Borealis, Esso S.A.F., TotalEnergies and Yara International ASA to develop CO2 capture and storage infrastructure that will contribute to the decarbonization of the Normandy industrial basin.
-
Selection by the
European Commission of Kairos@C, a carbon capture and storage project developed with BASF to decarbonize the industrial site located in thePort of Antwerp , to receive funding from theEuropean Innovation Fund . - Memorandum of Understanding signed with ArcelorMittal, aimed at implementing solutions to produce low-carbon steel in Dunkirk.
-
Launch of Qlixbi, a groundbreaking packaged gas offering for welders, in four new European countries (
Germany ,Sweden ,Denmark andthe Netherlands ) following its success in theUnited Kingdom . - New record-breaking year with 48 on-site contracts in Industrial Merchant.
-
Long-term power purchase agreements for renewable energy in
-
Healthcare:
- Continued mobilization of teams in the fight against the pandemic, worldwide.
-
Acquisition of
Betamed SA , a major player in the home healthcare business inPoland .
Group revenue for 2021 totaled
Gas & Services revenue in 2021 totaled
-
Gas & Services revenue in the
Americas totaled8,445 million euros in 2021, up by +7.6% on a comparable basis.Large Industries sales were up +7.6% driven by high demand, and the start-up and ramp-up of new units. The Industrial Merchant business continued to recover, with a +6.9% increase in revenue. Healthcare sales were up +13.7% for the year: teams remained focused on fighting the pandemic and business activity gradually returned to normal, particularly inthe United States in proximity care. Electronics posted solid revenue growth of +5.2% in 2021. -
Revenue in
Europe was up +7.0% on a comparable basis in 2021 to8,315 million euros .Large Industries sales (+5.2% ) were driven by the strong customer activity in the Steel and Chemicals markets as well as a gradual recovery in Refining. Industrial Merchant activity grew strongly by +10.8% , benefiting from dynamic volumes in all markets and geographies, and an acceleration of pricing impacts especially in the 4th quarter. Healthcare posted revenue that was up by +4.7% on a comparable basis after an exceptionally strong growth of +9.7% in 2020: pandemic-related medical oxygen sales rose strongly in 2021, even if the 4th quarter sales were below the 2020 record level. Moreover, revenue benefited from the pick-up ofHome Healthcare activity and surgeries in hospitals. -
Revenue for the Asia-Pacific region in 2021 rose sharply by +
6.4% on a comparable basis, totaling4,790 million euros .Large Industries sales for the year rose steadily by +2.9% : after a highly robust 1st half of the year, they were down in the second half, mainly resulting from temporary measures of Dual Energy Control inChina . The Industrial Merchant business saw a comparable growth of +10.2% , fueled by strong activity inChina and the recovery across the rest ofAsia . Electronics sales increased by +6.7% in 2021 on a comparable basis, with a significant contribution from Carrier Gases which benefited from the start-up and ramp-up of several units. -
Revenue for 2021 in the
Middle East andAfrica reached717 million euros , up +12.7% on a comparable basis.Large Industries sales benefited from strong hydrogen demand by customers in the Yanbu basin inSaudi Arabia . Air gases volumes rose sharply inSouth Africa , as 16 Sasol ASUs (the acquisition of which was finalized in late June) were integrated: in the 2nd half of the year, sales totaled70 million euros and were recognized as part of the significant scope effect, hence excluded from the comparable growth in 2021. Industrial Merchant revenue continued to grow and Healthcare saw strong growth especially over the first three quarters.
Consolidated revenue from Engineering & Construction totaled
Global Markets & Technologies revenue for 2021 reached
Efficiencies (4) for the year totaled
Group Operating Income Recurring (OIR) reached
Net profit (Group share) stood at
Net earnings per share, at
Cash flow from operating activities before changes in net working capital amounted to
Gross industrial capital expenditure amounted to
Industrial investment decisions totaled close to 3.0 billion euros and were stable compared with 2020. Financial investment decisions reached
The additional contribution to sales of unit start-ups and ramp-ups totaled
The return on capital employed after tax (ROCE) was
At the General Meeting on
Air Liquide’s Board of Directors, which met on
As part of the implementation of the Company’s new mode of governance, announced on
On the recommendation of the
-
Renew for a period of four years the term of office of Ms.
Annette Winkler , an independent Director since 2014, Chair of theEnvironment and Society Committee and a member of theAppointments and Governance Committee . Ms.Annette Winkler will continue to provide the Board of Directors with the benefit of her experience as the former head of division of a major German industrial group with global reach and her knowledge of the automobile sector. -
The Board took note that
Mr. Jean-Paul Agon , whose term of office as Director will expire at the close of the General Meeting ofMay 2022 , does not wish to seek renewal of his office. The Board thanked him very warmly for his contribution to the work of the Board of Directors which he has supported since 2010, for his exceptional commitment in his capacity as Lead Director and as Chair of theAppointments and Governance Committee , and for his participation in the work of the Remuneration Committee. -
Moreover, Ms.
Sin Leng Low whose term of office as Director will expire at the close of the General Meeting ofMay 2022 also indicated that she does not wish to seek renewal of her office as Director. The Board took due note and thanked Ms.Sin Leng Low very warmly for her contribution to the work of the Board of Directors of which she has been a member since 2014, and for her participation to the work of the Audit Committee of which she has been a member since 2015.
At the close of the General Meeting of
The Board of Directors also decided to maintain, in the context of the new separate governance roles, the office of a Lead Director, who shall be appointed from among the independent Directors. A Lead Director, with unchanged powers, will thus be appointed to succeed
Finally, the Board of Directors will submit to the vote of the General Meeting the elements of Mr. Benoît Potier’s remuneration for 2021, in his capacity as Chairman and Chief Executive Officer, together with the information relating to the remuneration of all the corporate officers for 2021. The General Meeting will also be invited to decide upon the remuneration policy for the corporate officers which will apply to Mr.
Table of Contents
PERFORMANCE |
8 |
|
|
8 |
|
Income Statement |
9 |
|
2021 Cash Flow and Balance Sheet |
19 |
|
|
21 |
|
INVESTMENT CYCLE AND FINANCING |
23 |
|
Investments |
23 |
|
2021 Financing |
25 |
|
OUTLOOK |
27 |
|
APPENDICES |
28 |
|
Performance indicators |
28 |
|
Calculation of performance indicators (Year) |
29 |
|
Calculation of performance indicators (Quarter) |
33 |
|
4th quarter 2021 revenue |
33 |
|
Geographic and segment information |
34 |
|
Consolidated income statement |
34 |
|
Consolidated balance sheet |
35 |
|
Consolidated cash flow statement |
36 |
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 2020 |
FY 2021 |
2021/2020
change |
2021/2020
|
||||
Total Revenue |
20,485 |
23,335 |
+ |
+ |
||||
Of which Gas & Services |
19,656 |
22,267 |
+ |
+ |
||||
Operating Income Recurring (OIR) |
3,790 |
4,160 |
+ |
+ |
||||
Group OIR Margin |
|
|
-70 bps |
|
||||
Variation excluding energy (b) |
|
|
+70 bps |
|
||||
Other Non-Recurring Operating Income and Expenses |
(140) |
(151) |
|
|
||||
Net Profit (Group share) |
2,435 |
2,572 |
+ |
|
||||
Net Profit Recurring (Group share) (c) |
2,341 |
2,572 |
+ |
|
||||
Variation Net Profit Recurring (Group share) excluding currency impact (b) |
|
|
+ |
|
||||
Earnings per share (in euros) |
5.16 |
5.45 |
+ |
|
||||
Net Dividend per share (in euros) |
2.75 |
2.90 (d) |
+ |
|
||||
Cash flow from operating activities before changes in net working capital |
4,932 |
5,292 |
+ |
|
||||
Net Capital Expenditure (e) |
1,971 |
3,388 |
|
|
||||
Net Debt |
|
|
|
|
||||
Net Debt to Equity ratio |
|
|
|
|
||||
Return on Capital Employed after tax - ROCE |
|
|
+30 bps |
|
||||
Recurring ROCE (f) |
|
|
+70 bps |
(a) Change excluding the currency, energy (natural gas and electricity) and significant scope impacts, see reconciliation in appendix. |
(b) See reconciliation in appendix. |
(c) Excluding exceptional and significant transactions that have no impact on the operating income recurring, see reconciliation in appendix. |
(d) Dividend proposed to shareholders for the 2021 fiscal year. |
(e) Including transactions with minority shareholders. |
(f) Based on the recurring net profit, see reconciliation in appendix. |
Income Statement
REVENUE
Revenue (in millions of euros) |
FY 2020 |
FY 2021 |
2021/2020
|
2021/2020
|
||||
Gas & Services |
19,656 |
22,267 |
+ |
+ |
||||
Engineering & Construction |
250 |
387 |
+ |
+ |
||||
Global Markets & Technologies |
579 |
681 |
+ |
+ |
||||
TOTAL REVENUE |
20,485 |
23,335 |
+ |
+ |
Revenue by Quarter (in millions of euros) |
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q4 2021 |
||||
Gas & Services |
5,103 |
5,247 |
5,585 |
6,332 |
||||
Engineering & Construction |
76 |
93 |
81 |
137 |
||||
Global Markets & Technologies |
155 |
172 |
168 |
186 |
||||
TOTAL REVENUE |
5,334 |
5,512 |
5,834 |
6,655 |
||||
2021/2020 Group published change |
- |
+ |
+ |
+ |
||||
2021/2020 Group comparable change |
+ |
+ |
+ |
+ |
||||
2021/2020 Gas & Services comparable change |
+ |
+ |
+ |
+ |
Group
Group revenue for 2021 totaled
Energy prices saw an exceptionally strong increase during the 2nd half of the year, especially in
Gas & Services
Gas & Services revenue in 2021 totaled
Gas & Services sales were up +
Revenue by geography and business line (in millions of euros) |
FY 2020 |
FY 2021 |
2021/2020
|
2021/2020
|
||||
|
7,799 |
8,445 |
+ |
+ |
||||
|
6,826 |
8,315 |
+ |
+ |
||||
|
4,467 |
4,790 |
+ |
+ |
||||
|
564 |
717 |
+ |
+ |
||||
GAS & SERVICES REVENUE |
19,656 |
22,267 |
+ |
+ |
||||
|
4,972 |
6,978 |
+ |
+ |
||||
Industrial Merchant |
8,959 |
9,487 |
+ |
+ |
||||
Healthcare |
3,724 |
3,706 |
- |
+ |
||||
Electronics |
2,001 |
2,096 |
+ |
+ |
Gas & Services revenue in the
-
Large Industries 2021 revenue was up +7.6% . Oxygen volumes grew strongly over the year, driven by customer demand in the Chemicals and Steel industries. Similarly, demand for hydrogen used in Refining increased. Lastly, the ramp-up of existing units inLatin America and the start-up of new units inCanada andthe United States contributed to growth. -
The dynamic recovery in the Industrial Merchant business continued, with a +
6.9% increase in revenue. Inthe United States , growth was strong across all markets. However, the non-residential construction sector remained soft, contributing to the limited growth in hardgoods. Volumes were robust inLatin America , particularly inBrazil . Pricing impacts amounted to +4.3% for the year, rising in the 4th quarter (+7.0% ) driven by dynamic pricing campaigns. -
Healthcare revenue rose sharply (+
13.7% ) in 2021, especially during the first three quarters which saw strong growth in medical oxygen volumes throughout the region due to the pandemic. Inthe United States , proximity care gradually returned to normal activity levels with the resumption of non-emergency surgeries.Home Healthcare saw strong growth inLatin America , especially in oxygen therapy and sleep apnea treatment. -
Electronics sales grew by +
5.2% over the year, and were driven in particular by the start-up of a Carrier Gases unit inthe United States and by strong demand in Specialty Materials.
Revenue in
-
In 2021,
Large Industries sales rose by +5.2% , driven by strong demand in the Steel and Chemicals markets. Hydrogen volumes for Refining grew thanks to a pick-up in activity and the contribution of a new unit inKazakhstan acquired at the beginning of the year. The robust sales growth inEastern Europe was also helped by the start-up of two units inRussia and one unit inKazakhstan in the 2nd half of the year. The 2nd half of 2021 was characterized by a steep and rapid increase in energy prices, which are contractually invoiced to customers. -
The recovery was robust throughout the year in the Industrial Merchant business, with sales growing by +
10.8% . All end-markets are growing, primarily Metal Fabrication, Materials and Energy. InWestern Europe , sales of liquid gas posted double-digit growth and cylinder gas sales were also on the rise in all countries. Business was particularly robust inEastern Europe with more than a +20% increase in sales, notably inPoland ,Russia andTurkey . Pricing impacts were up +3.9% for the year, rising on a sequential basis and accelerating sharply in the 4th quarter to stand at +10.4% . They reflect the capability of teams to quickly translate exceptionally steep and rapid increase of energy costs into prices. -
Healthcare pursued its revenue growth (+
4.7% ) in 2021 after exceptionally strong upward momentum in 2020 during the peak of the pandemic, in particular of medical gases and of sales of equipment. 2021 sales of medical gases show strong growth, especially over the first three quarters; during the 4th quarter, they were down on very high sales figures from 2020.Home Healthcare business activity was solid, especially in diabetes treatment with the broadening of services inFrance and its introduction into new regions such asGermany and theUnited Kingdom . Renewed prescriptions for sleep apnea also contributed to this momentum in practically all countries. Lastly, sales of Specialty Ingredients contributed to the year’s strong growth.
-
Air Liquide and BASF are planning to develop the world’s largest cross-border Carbon Capture and Storage (CCS) value chain. The goal is to significantly reduce CO2 emissions at the industrial cluster in the port of
Antwerp . The joint project “Kairos@C” has been selected for funding by theEuropean Commission through itsInnovation Fund , as one of the seven large-scale projects out of more than 300 applications. -
Air Liquide announced several projects in the Normandy industrial basin in
France related to the energy transition:- Air Liquide and TotalEnergies have joined forces to decarbonize hydrogen production at TotalEnergies’ platform in Normandy. The project* first stage is to acquire TotalEnergies’ existing hydrogen production plant and connect it to Air Liquide’s pipeline system. The next stage will see Air Liquide invest in a new CO2 capture unit at the production plant purchased from TotalEnergies. This spending is part of the plan to develop the world’s first low-carbon hydrogen pipeline network, which will provide the industrial infrastructure for the development of hydrogen mobility.
-
Air Liquide, Borealis, Esso, TotalEnergies and Yara have signed a Memorandum of Understanding (MoU) to explore the development of a CO2 infrastructure including capture and storage, to help decarbonize the industrial basin located in the Normandy region,
France . With the objective to reduce CO2 emissions by up to 3 million tons per year by 2030, the first phase will consist in studying the technical and economical feasibility of this project. -
Air Liquide increased to
100% its total stake in H2V Normandy, of which it previously held40% . Renamed Air Liquide Normand’Hy, this company aims to build a large-scale electrolyzer of at least 200 MW for the production of renewable hydrogen inFrance . This strategic investment will support the development of a low-carbon hydrogen ecosystem in the Normandy industrial basin.
-
Air Liquide and Eni join forces to support hydrogen mobility as one of the solutions to decarbonize the transport segment. The two companies have entered into a partnership with the aim to invest in the development of the infrastructure necessary to allow the expansion of hydrogen mobility in
Italy .
*This project is subject to approval by the competent authorities.
Revenue for the
-
Large Industries sales for 2021 posted growth of +2.9% : following on from growth of +9.8% in the 1st half of the year, they were impacted during the 2nd half by temporary measures of Dual Energy Control inChina , which were then eased in the 4th quarter. Across the year, business activity benefited especially from increased volumes inSingapore , strong demand for oxygen from Steel industry customers inJapan and the ramp-up of a new unit inSouth Korea . -
Industrial Merchant revenue was up +
10.2% , with sales growing in every geography. InChina , sales exceeded +17% for the year, notably with very strong growth in sales of cylinder gas and of gases produced by small on-site gas generators. All end-markets are growing in the region, especially Automotive, Metal Fabrication, Materials and Energy. Pricing impacts were +0.6% for the year, accelerating in the 4th quarter where they stood at +2.6% and +3.2% excluding helium, further to price increase campaigns, especially inChina . -
Electronics sales for 2021 were up +
6.7% , driven by a semiconductor market with great momentum. Carrier Gases sales saw strong growth with the ramp-up of units and 5 start-ups during the year inChina ,Japan andSingapore . Sales growth in Advanced Materials and Specialty Materials was very solid over the year with a sharp acceleration in the 4th quarter. Equipment & Installations sales posted robust growth in 2021.
-
Air Liquide will invest around
70 million euros to build a state-of-the-art gases plant inWuhan to supply a major memory chipmaker. Air Liquide has been producing ultra-pure industrial gases for this leading Chinese high-tech company for more than 12 years. The unit is planned to be operational in 2022. -
Air Liquide andJiangsu Shagang Group , the largest private steel enterprise inChina and one of top 5 globally, have signed a new long-term agreement for the supply of industrial gases in Zhangjiagang City,Jiangsu Province ,China . Air Liquide will invest around100 million euros towards the construction of a world-scale Air Separation Unit (ASU) on the site, where it already operates two other ASUs. Designed to use low carbon energy, this state of the art plant will allow to significantly reduce CO2 emissions over time. This new ASU will also be a new source of krypton and xenon to address the growing demand of the Electronics industry, as well as other air gases for our industrial merchant activity inChina .
Revenue for 2021 in the
-
Air Liquide has finalized the acquisition of Sasol’s 16 Air Separation Units (ASU) located in
Secunda ,South Africa . Air Liquide will operate this site - the biggest oxygen production site in the world - with a plan to reduce its CO2 emissions by30% to40% within the next ten years. The initial investment is approximately8 billion South African Rand (circa480 million euros ).
Engineering & Construction
Consolidated revenue from Engineering & Construction totaled
Over the year, order intake exceeded
Global Markets & Technologies
Global Markets & Technologies revenue for 2021 reached
Order intake for Group projects and third-party customers totaled
Global Markets & Technologies
-
Air Liquide has entered into a long-term agreement with
Laurentis Energy Partners , a leader in the clean-energy industry, to produce and distribute helium-3 (3He). This molecule is a rare isotope of helium used in quantum computing, quantum science, astrophysics, neutron detection, medical imaging and, in the future, fusion. Thanks to this new partnership, Air Liquide will be able to deliver large quantities of helium-3 to its customers around the world. -
Air Liquide and IVECO, the commercial vehicles brand of CNH Industrial, have signed a Memorandum of Understanding to develop hydrogen for mobility in
Europe . The partnership will contribute to materialize clean mobility by leveraging the two companies’ complementary competencies, in particular Air Liquide’s unique expertise across the entire hydrogen value chain, from production and storage to distribution, and IVECO’s legacy as a provider of advanced, clean sustainable transport solutions. - Air Liquide, Airbus and Groupe ADP have signed a Memorandum of Understanding (MoU) to prepare for the arrival of hydrogen in airports by 2035 as part of the development of hydrogen-powered commercial aircraft. The partners will leverage their respective expertise to support the decarbonization of the aviation industry and to define the concrete needs and opportunities that hydrogen can bring to the aeronautics sector.
OPERATING INCOME RECURRING
Operating income recurring before depreciation and amortization totaled
Personnel costs increased by +
Group Operating Income Recurring (OIR) reached
Efficiencies(8) for the year totaled
Portfolio and pricing management also contributed to margin improvement.
Gas & Services
Gas & Services operating income recurring totaled
Industrial Merchant prices were up +
Gas & Services Operating margin (a) |
FY 2020 |
FY 2021 |
FY 2021,
|
2021/2020
|
||||
|
|
|
|
+130 bps |
||||
|
|
|
|
-10 bps |
||||
|
|
|
|
+60 bps |
||||
|
|
|
|
+550 bps |
||||
TOTAL |
|
|
|
+80 bps |
(a) Operating income recurring / revenue as published
Operating income recurring in the
Operating income recurring for
Operating income recurring for
Operating income recurring for the
Engineering & Construction
Operating income recurring for Engineering & Construction was
Global Markets & Technologies
Operating income recurring for Global Markets & Technologies amounted to
Corporate Costs and Research & Development
Corporate and Research & Development expenses, stood at
NET PROFIT
Other operating income and expenses showed a balance of
The financial result amounted to
Income tax expense was 915 million euros in 2021, corresponding to an effective tax rate of
The share of profit of associates amounted to
Net profit (Group share) stood at
Net earnings per share, at
Change in the number of shares
|
FY 2020 |
FY 2021 |
||
Average number of outstanding shares |
471,603,408 |
472,253,960 |
DIVIDEND
At the General Meeting on
2021 Cash Flow and Balance Sheet
(in millions of euros) |
2020 |
2021 |
||
Cash flow from operating activities before changes in net working capital |
4,932 |
5,292 |
||
Changes in working capital |
364 |
377 |
||
Other cash items |
(91) |
(99) |
||
Net cash flows from operating activities |
5,206 |
5,571 |
||
Dividends |
(1,387) |
(1,418) |
||
Purchase of property, plant and equipment and intangible assets, net of disposals |
(1,971) |
(3,388) |
||
Proceeds from issues of share capital |
44 |
175 |
||
Purchase of treasury shares |
(50) |
(40) |
||
Lease liabilities repayments and net interests paid on lease liabilities |
(282) |
(274) |
||
Impact of exchange rate changes and net indebtedness of newly consolidated companies & restatement of net finance costs |
203 |
(465) |
||
Change in net debt |
1,764 |
161 |
||
Net debt as of |
(10,609) |
(10,448) |
||
Debt-to-equity ratio as of |
|
|
NET CASH FLOW FROM OPERATING ACTIVITIES AND CHANGES IN WORKING CAPITAL REQUIREMENT
Cash flow from operating activities before changes in net working capital amounted to
Working Capital Requirement (WCR) decreased significantly, by
Net cash flow from operating activities after changes in working capital requirement amounted to
CAPITAL EXPENDITURE
(in millions of euros) |
Industrial
|
Financial
|
Total capital
|
|||
2017 |
2,183 |
144 |
2,327 |
|||
2018 |
2,249 |
131 |
2,380 |
|||
2019 |
2,636 |
568 |
3,205 |
|||
2020 |
2,630 |
145 |
2,775 |
|||
2021 |
2,917 |
696 |
3,613 |
|||
(a)Including transactions with minority shareholders. |
||||||
Gross capital expenditure was very high in 2021 at
Gross industrial capital expenditure amounted to
|
Gas & Services |
|||||||||
(in millions of euros) |
|
|
|
|
Total |
|||||
2020 |
873 |
914 |
577 |
53 |
2,416 |
|||||
2021 |
913 |
909 |
755 |
64 |
2,641 |
|||||
Financial investments amounted to
Proceeds from the sale of assets, which reached
Net capital expenditure (10) totaled
NET DEBT
Net debt at
ROCE
The return on capital employed after tax (ROCE) was
SAFETY
Employees lost time accident frequency rate(12) reached 1.1 at the end of 2021, a slight increase compared to 2020 (0.9) which was the lowest in 20 years, related to the strong pick-up in activity in 2021.
SUSTAINABILITY
In
First, act for a low-carbon society, in line with the Paris Agreement, by setting a carbon neutrality target by 2050, with two major intermediate steps: the start of the reduction of CO2 emissions in absolute value around 2025 then a -
In 2021, the Group’s CO2 emissions of scopes 1 and 2 amounted to around 36 millions tons and the carbon intensity15 was 5.5 kg of CO2 per euro of EBITDA. A new organization for greenhouse gas emissions management was defined and put in place this year. This newly formed organization, along with the decisions taken and the actions performed by the Group secure the objective of emissions inflection in absolute value around 2025 and the decrease by -
Second, care for patients by improving the quality of life of patients with chronic diseases in mature economies and facilitating access to medical oxygen in low- and middle-income countries.
In 2021, Air Liquide provided care for approximately 1 million patients at home,
And third, trust as the base to engage with employees and to build the best-in-class governance. Air Liquide promotes inclusion and diversity within its teams, in particular, in order to reach a proportion of
Women represented
-
Air Liquide has signed a long-term Power Purchase Agreement (PPA) with TotalEnergies for a total capacity of 15 megawatts of offshore wind electricity in
Belgium . Following PPA agreements inthe United States ,Spain , andthe Netherlands , this PPA signed by the Group inBelgium illustrates Air Liquide's commitment to lead the way in the energy transition and to lower its carbon footprint, in line with its Sustainability Objectives.
INVESTMENT CYCLE AND FINANCING
Investments
INVESTMENT DECISIONS AND INVESTMENT BACKLOG
(in billions of euros) |
Industrial Investment
|
Financial investment
decisions
|
Total investment
|
|||
2017 |
2.4 |
0.2 |
2.6 |
|||
2018 |
3.0 |
0.2 |
3.1 |
|||
2019 |
3.2 |
0.6 |
3.7 |
|||
2020 |
3.0 |
0.1 |
3.2 |
|||
2021 |
3.0 |
0.6 |
3.6 |
In 2021, industrial and financial investment decisions reached a very high level of
Industrial investment decisions totaled close to 3.0 billion euros and were stable compared with 2020. They were strong in
Financial investment decisions reached
The investment backlog remained stable at the high level of
Investment
-
Air Liquide is continuing to develop its home healthcare business in
Europe with the acquisition ofBetamed S.A. , a major home healthcare provider inPoland . Betamed specialises in the care of patients with severe pathologies, either at home or in its specialised clinic in Chorzów in Silesia. This acquisition enables the Group to strengthen its presence inPoland and to expand its range of services to support patients suffering from complex forms of chronic diseases.
START-
There were 21 major start-ups during 2021. This notably included large-scale ASUs in
The additional contribution to sales of unit start-ups and ramp-ups totaled
The additional contribution to 2022 sales of unit start-ups and ramp-ups is expected to be between 410 million and
INVESTMENT OPPORTUNITIES
The 12-month portfolio of investment opportunities increased to
The projects related to energy transition represent more than
2021 Financing
“A” CATEGORY FINANCIAL RATING CONFIRMED
Air Liquide is rated by two main rating agencies, Standard & Poor’s and Moody’s. The long-term rating from Standard & Poor’s is “A”, improving compared to ”A-” in 2020, and from Moody’s is “A3”. These are in line with the Group’s strategy. Moreover, the short-term ratings are “A1” for Standard & Poor’s, upgraded compared to “A2” in 2020, and “P2” for Moody’s. Standard & Poor’s announced its long term and short terms rating upgrades on
DIVERSIFYING AND SECURING FINANCIAL SOURCES
As of
The total amount of credit facilities was stable at
The amount of total debt maturing in the next 12 months is
2021 BOND ISSUANCE
In
Financing
-
On
May 19, 2021 , Air Liquide successfully launched its first green bond issue, by raising500 million euros (10 years maturity) which will be dedicated to financing and refinancing the development of several sustainable projects, in particular in hydrogen, biogas and oxygen. This operation is in line with the “Sustainable Financing Framework” published onMay 17 and validated by a third-party. This new bond issue will notably contribute to the financing of the ambitious sustainable projects the Group announced onMarch 23, 2021 . At the same time, Air Liquide undertakes to publish, annually until the funds raised are fully allocated, a "Sustainable Financing Reporting", which will include an allocation report and an impact report, both validated by an audit firm and made public on the Group’s website.
In
At the end of 2021, outstanding bonds issued under the EMTN program amounted to
Net Debt by currency as of
|
|
|
||
Euro |
|
|
||
US Dollar |
|
|
||
Japanese yen |
|
|
||
South-African rand |
- |
|
||
Other |
|
|
||
TOTAL |
|
|
Investments are generally funded in the currency in which the cash flows are generated, creating a natural currency hedge. In 2021, net debt increased in US dollar due to the currency impact (appreciation of the US dollar against the euro) and in South African rand. In addition, net debt decreased in euro and the share of the euro in total net debt decreased consequently in favor of the US dollar and the South African rand.
CENTRALIZATION OF CASH AND FUNDING
At
DEBT MATURITY AND SCHEDULE
The average of the Group’s debt maturity was 6.0 years at
The following chart shows the Group’s debt maturity schedule. The single largest annual maturity represents approximately
OUTLOOK
In 2021, the Group achieved an excellent performance, in spite of the ongoing pandemic and the strong inflationary pressures mainly related to the sharp increase in energy prices in the second half.
Air Liquide’s teams have stepped up in all areas, whether in response to the Covid-19 crisis, the significant acceleration in inflation or the energy transition challenge, once again demonstrating their strong reactivity and adaptability. The Group has taken action in the here and now, while at the same time preparing the future. The investment momentum has been sustained, with the signature of numerous agreements in particular related to the energy transition.
The Group has delivered another year of profitable growth: Sales reached
All activities improved markedly: Gas & Services, which represents
The Group further improved its operating margin thanks to an inflation-adapted pricing policy, significant efficiencies of
Air Liquide’s balance sheet has been further strengthened. Recurring ROCE reached
With a business model that combines financial and extra-financial performance, Air Liquide is particularly well positioned in the markets of the future. In response, notably to the major challenges of climate change and the energy transition, the Group offers a wide range of solutions based on hydrogen and technologies to decarbonize industry. Contributing to a sustainable future is at the heart of our activity and of our strategy.
In 2022, assuming no significant economic disruption, Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit (17) growth at constant exchange rates.
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
- Operating income recurring before depreciation and amortization excluding IFRS16 at 2015 exchange rate
- 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.
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.
For 2021, the calculations are the following:
(in millions of euros) |
FY 2021 |
FY 2021/2020
|
Currency
|
Natural gas
|
Electricity
|
Significant
|
FY 2021/2020
|
|||||||
Revenue |
|
|
|
|
|
|
|
|||||||
Group |
23,335 |
+ |
(321) |
1,255 |
467 |
(206) |
+ |
|||||||
Impacts in % |
|
|
- |
+ |
+ |
- |
|
|||||||
Gas & Services |
22,267 |
+ |
(317) |
1,255 |
467 |
(206) |
+ |
|||||||
Impacts in % |
|
|
- |
+ |
+ |
- |
|
|||||||
Operating Income Recurring |
|
|
|
|
|
|
|
|||||||
Group |
4,160 |
+ |
(75) |
- |
- |
(27) |
+ |
|||||||
Impacts in % |
|
|
- |
- |
- |
- |
|
|||||||
Gas & Services |
4,362 |
+ |
(74) |
- |
- |
(27) |
+ |
|||||||
Impacts in % |
|
|
- |
- |
- |
- |
|
OPERATING MARGIN AND OPERATING MARGIN EXCLUDING ENERGY
The operating margin is the ratio of the operating income recurring divided by revenue. The operating margin excluding energy corresponds to the operating income recurring, not affected by the indexation effect of electricity and natural gas, divided by revenue excluding the energy impact. The ratio of operating income recurring divided by the revenue (whether restated or not from the energy impact) is calculated with rounding to one decimal place. The variation between 2 periods is calculated as the difference between these rounded ratios, which can result in positive or negative differences compared to a more precise calculation, due to rounding.
|
|
FY 2021 |
Natural gas
|
Electricity
|
FY 2021,
|
|||||
Revenue |
Group |
23,335 |
1,243 |
463 |
21,629 |
|||||
|
Gas & Services |
22,267 |
1,243 |
463 |
20,561 |
|||||
Operating Income Recurring |
Group |
4,160 |
- |
- |
4,160 |
|||||
|
Gas & Services |
4,362 |
- |
- |
4,362 |
|||||
Operating Margin |
Group |
|
|
|
|
|||||
|
Gas & Services |
|
|
|
|
CARBON INTENSITY CALCULATION
|
2015 |
2021 |
2021/2015 change |
|||
(A) Operating income recurring before depreciation and amortization |
4,033 |
6,333 |
|
|||
(B) Currency impact (2015)(1) |
|
(491) |
|
|||
(C) IFRS16 Impact(2) |
|
265 |
|
|||
(A) - (B) - (C) = (D) EBITDA used for Carbon Intensity calculation |
4,033 |
6,559 |
|
|||
(E) CO2 equivalent emissions (Scopes 1 + 2(3)) in thousands of tonnes |
29,413 |
36,364 |
|
|||
Carbon Intensity (E) / (D) |
7.3 |
5.5 |
- |
(1) At 2015 exchange rate excluding |
(2) The IFRS16 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 IFRS16 |
(3) 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 2020 |
FY 2021 |
2021/2020 Change |
|||
(A) Net Profit (Group share) - As Published |
2,435.1 |
2,572.2 |
+ |
|||
(B) Exceptional and significant transactions after-tax with no impact on OIR |
|
|
|
|||
- Exceptional expenses linked to the management of the Covid-19 pandemic |
(48.6) |
|
|
|||
- Strategic review of asset portfolio |
(300.3) |
|
|
|||
- Capital gain on Schülke divestiture |
473.2 |
|
|
|||
- Early reimbursement cost of Airgas senior notes |
(30.3) |
|
|
|||
(A) - (B) = Net Profit Recurring (Group share) |
2,341.1 |
2,572.2 |
+ |
|||
(C) Currency impact |
|
(79.1) |
|
|||
(A) - (B) - (C) = Net Profit Recurring (Group share) excluding currency impact |
|
2,651.3 |
+ |
NET PROFIT EXCLUDING IFRS16 AND NET PROFIT RECURRING EXCLUDING IFRS16
|
FY 2020 |
FY 2021 |
||
(A) Net Profit as Published |
2,528.0 |
2,691.9 |
||
(B) = IFRS16 Impact(1) |
(13.2) |
(13.3) |
||
(A) - (B) = Net Profit excluding IFRS16 |
2,541.2 |
2,705.2 |
(1)The IFRS16 impact includes the reintegration of leasing expenses less depreciation and other financial expenses booked in relation to IFRS16 |
|
FY 2020 |
FY 2021 |
||
(A) Net Profit as Published |
2,528.0 |
2,691.9 |
||
(B) Exceptional and significant transactions after-tax with no impact on OIR |
94.0 |
0.0 |
||
(A) - (B) = Net Profit recurring |
2,434.0 |
2,691.9 |
||
(C) IFRS16 Impact(1) |
(13.2) |
(13.3) |
||
(A) - (B) - (C) = Net Profit recurring excluding IFRS16 |
2,447.2 |
2,705.2 |
(1)The IFRS16 impact includes the reintegration of leasing expenses less depreciation and other financial expenses booked in relation to IFRS16 |
EFFICIENCIES
Efficiencies represent a sustainable cost reduction resulting from an action plan on a specific project. Efficiencies are identified and managed on a per project basis. Each project is followed by a team composed in alignment with the nature of the project (purchasing, operations, human resources...).
RETURN ON CAPITAL EMPLOYED - ROCE
Return on capital employed after tax is calculated based on the Group’s consolidated financial statements, by applying the following ratio for the period in question.
For the numerator: net profit excluding IFRS16 - net finance costs after taxes for the period in question.
For the denominator: the average of (total shareholders' equity excluding IFRS16 + net debt) at the end of the past three half-years.
|
|
FY 2020 |
H1 2021 |
FY 2021 |
ROCE
|
|||||
(in millions of euros) |
|
(a) |
(b) |
(c) |
||||||
Numerator
|
Net Profit Excluding IFRS16 |
|
|
|
|
2,705.2 |
|
2,705.2 |
||
Net Finance costs |
|
|
|
|
(280.0) |
|
|
|||
Effective Tax Rate (1) |
|
|
|
|
|
|
|
|||
Net Finance costs after tax |
|
|
|
|
(211.2) |
|
(211.2) |
|||
Net Profit - Net financial costs after tax |
|
|
|
|
2,916.4 |
|
2,916.4 |
|||
Denominator
|
Total Equity Excluding IFRS16 |
19,032.2 |
|
19,607.6 |
|
22,039.6 |
|
20,226.5 |
||
Net Debt |
10,609.3 |
|
12,013.2 |
|
10,448.3 |
|
11,023.6 |
|||
Average of (total equity + net debt) |
29,641.5 |
|
31,620.8 |
|
32,487.9 |
|
31,250.1 |
|||
ROCE |
|
|
|
|
|
|
|
|
||
(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. In 2021 the net profit recurring excluding IFRS16 was of the same amount as net profit excluding IFRS16.
|
|
FY 2020 |
H1 2021 |
FY 2021 |
Recurring
|
|||||
(in millions of euros) |
|
(a) |
(b) |
(c) |
||||||
Numerator
|
Net Profit Recurring Excluding IFRS16 |
|
|
|
|
2,705.2 |
|
2,705.2 |
||
Net Finance costs |
|
|
|
|
(280.0) |
|
|
|||
Effective Tax Rate(1) |
|
|
|
|
|
|
|
|||
Net Finance costs after tax |
|
|
|
|
(211.2) |
|
(211.2) |
|||
Recurring Net Profit Excluding IFRS16 - Net financial costs after tax |
|
|
|
|
2,916.3 |
|
2,916.4 |
|||
Denominator
|
Total Equity Excluding IFRS16 |
19,032.2 |
|
19,607.6 |
|
22,039.6 |
|
20,226.5 |
||
Net Debt |
10,609.3 |
|
12,013.2 |
|
10,448.3 |
|
11,023.6 |
|||
Average of (total equity + net debt) |
29,641.5 |
|
31,620.8 |
|
32,487.9 |
|
31,250.1 |
|||
Recurring ROCE |
|
|
|
|
|
|
|
|
||
(1) excluding non-recurring tax impact |
||||||||||
Calculation of performance indicators (Quarter)
|
Q4 2021 |
Q4 2021/2020
|
Currency
|
Natural gas
|
Electricity
|
Significant
|
Q4 2021/2020
|
|||||||
Revenue |
|
|
|
|
|
|
|
|||||||
Group |
6,655 |
+ |
153 |
609 |
254 |
31 |
+ |
|||||||
Impacts in % |
|
|
+ |
+ |
+ |
+ |
|
|||||||
Gas & Services |
6,332 |
+ |
147 |
609 |
254 |
31 |
+ |
|||||||
Impacts in % |
|
|
+ |
+ |
+ |
+ |
|
4th quarter 2021 revenue
BY GEOGRAPHY
Revenue (in millions of euros) |
Q4 2020 |
Q4 2021 |
Published change |
Comparable change |
||||
|
1,908 |
2,242 |
+ |
+ |
||||
|
1,771 |
2,620 |
+ |
+ |
||||
|
1,130 |
1,267 |
+ |
+ |
||||
|
150 |
203 |
+ |
+ |
||||
Gas & Services Revenue |
4,959 |
6,332 |
+ |
+ |
||||
Engineering & Construction |
86 |
137 |
+ |
+ |
||||
Global Markets & Technologies |
187 |
186 |
- |
- |
||||
GROUP REVENUE |
5,232 |
6,655 |
+ |
+ |
BY WORLD BUSINESS LINE
Revenue (in millions of euros) |
Q4 2020 |
Q4 2021 |
Published change |
Comparable change |
||||
Large industries |
1,330 |
2,319 |
+ |
+ |
||||
Industrial Merchant |
2,233 |
2,508 |
+ |
+ |
||||
Healthcare |
899 |
950 |
+ |
+ |
||||
Electronics |
497 |
555 |
+ |
+ |
||||
GAS & SERVICES REVENUE |
4,959 |
6,332 |
+ |
+ |
Geographic and segment information
|
FY 2020 |
FY 2021 |
||||||||||
(in millions of euros and %) |
Revenue |
Operating
|
OIR margin |
Revenue |
Operating
|
OIR margin |
||||||
|
7,799 |
1,530 |
|
8,445 |
1,694 |
|
||||||
|
6,826 |
1,405 |
|
8,315 |
1,444 |
|
||||||
|
4,467 |
985 |
|
4,790 |
1,066 |
|
||||||
|
564 |
95 |
|
717 |
158 |
|
||||||
Gas & Services |
19,656 |
4,016 |
|
22,267 |
4,362 |
|
||||||
Engineering and Construction |
250 |
13 |
|
387 |
42 |
|
||||||
Global Markets & Technologies |
579 |
78 |
|
681 |
97 |
|
||||||
Reconciliation |
- |
(317) |
- |
- |
(341) |
- |
||||||
TOTAL GROUP |
20,485 |
3,790 |
|
23,335 |
4,160 |
|
||||||
Consolidated income statement
(in millions of euros) |
FY 2020 |
FY 2021 |
||
Revenue |
20,485.2 |
23,334.8 |
||
Other income |
216.1 |
226.8 |
||
Purchases |
(7,197.7) |
(9,388.7) |
||
Personnel expenses |
(4,239.8) |
(4,362.9) |
||
Other expenses |
(3,336.3) |
(3,477.2) |
||
Operating income recurring before depreciation and amortization |
5,927.5 |
6,332.8 |
||
Depreciation and amortization expenses |
(2,137.9) |
(2,172.5) |
||
Operating income recurring |
3,789.6 |
4,160.3 |
||
Other non-recurring operating income |
481.2 |
8.3 |
||
Other non-recurring operating expenses |
(620.7) |
(159.0) |
||
Operating income |
3,650.1 |
4,009.6 |
||
Net finance costs |
(352.8) |
(280.0) |
||
Other financial income |
6.9 |
3.6 |
||
Other financial expenses |
(94.0) |
(131.9) |
||
Income taxes |
(678.2) |
(914.8) |
||
Share of profit of associates |
(4.0) |
5.4 |
||
PROFIT FOR THE PERIOD |
2,528.0 |
2,691.9 |
||
- Minority interests |
92.9 |
119.7 |
||
- Net profit (Group share) |
2,435.1 |
2,572.2 |
||
Basic earnings per share (in euros) |
5.16 |
5.45 |
Consolidated balance sheet
ASSETS (in millions of euros) |
|
|
||
|
13,087.4 |
13,992.3 |
||
Other intangible assets |
1,397.8 |
1,452.6 |
||
Property, plant and equipment |
20,002.9 |
22,531.5 |
||
Non-current assets |
34,488.1 |
37,976.4 |
||
Non-current financial assets |
602.5 |
745.4 |
||
Investments in associates |
160.9 |
158.0 |
||
Deferred tax assets |
268.4 |
239.3 |
||
Fair value of non-current derivatives (assets) |
90.9 |
73.4 |
||
Other non-current assets |
1,122.7 |
1,216.1 |
||
TOTAL NON-CURRENT ASSETS |
35,610.8 |
39,192.5 |
||
Inventories and work-in-progress |
1,405.9 |
1,585.1 |
||
Trade receivables |
2,205.8 |
2,694.1 |
||
Other current assets |
737.7 |
810.5 |
||
Current tax assets |
90.4 |
106.5 |
||
Fair value of current derivatives (assets) |
44.1 |
63.9 |
||
Cash and cash equivalents |
1,791.4 |
2,246.6 |
||
TOTAL CURRENT ASSETS |
6,275.3 |
7,506.7 |
||
ASSETS HELD FOR SALE |
91.0 |
83.9 |
||
TOTAL ASSETS |
41,977.1 |
46,783.1 |
EQUITY AND LIABILITIES (in millions of euros) |
|
|
||
Share capital |
2,605.1 |
2,614.1 |
||
Additional paid-in capital |
2,608.1 |
2,749.2 |
||
Retained earnings |
11,033.8 |
13,645.1 |
||
|
(139.8) |
(118.3) |
||
Net profit (Group share) |
2,435.1 |
2,572.2 |
||
Shareholders' equity |
18,542.3 |
21,462.3 |
||
Minority interests |
462.3 |
536.5 |
||
TOTAL EQUITY |
19,004.6 |
21,998.8 |
||
Provisions, pensions and other employee benefits |
2,418.3 |
2,291.9 |
||
Deferred tax liabilities |
1,871.5 |
2,126.8 |
||
Non-current borrowings |
10,220.2 |
10,506.3 |
||
Non-current lease liabilities |
969.4 |
1,032.8 |
||
Other non-current liabilities |
206.5 |
343.0 |
||
Fair value of non-current derivatives (liabilities) |
11.5 |
39.0 |
||
TOTAL NON-CURRENT LIABILITIES |
15,697.4 |
16,339.8 |
||
Provisions, pensions and other employee benefits |
316.1 |
309.4 |
||
Trade payables |
2,437.9 |
3,333.2 |
||
Other current liabilities |
1,809.2 |
2,002.9 |
||
Current tax payables |
215.2 |
277.8 |
||
Current borrowings |
2,180.5 |
2,188.6 |
||
Current lease liabilities |
218.2 |
228.0 |
||
Fair value of current derivatives (liabilities) |
59.0 |
67.5 |
||
TOTAL CURRENT LIABILITIES |
7,236.1 |
8,407.4 |
||
LIABILITIES HELD FOR SALE |
39.0 |
37.1 |
||
TOTAL EQUITY AND LIABILITIES |
41,977.1 |
46,783.1 |
Consolidated cash flow statement
(in millions of euros) |
FY 2020 |
FY 2021 |
||
Operating activities |
|
|
||
Net profit (Group share) |
2,435.1 |
2,572.2 |
||
Minority interests |
92.9 |
119.7 |
||
Adjustments: |
|
|
||
• Depreciation and amortization |
2,137.9 |
2,172.5 |
||
• Changes in deferred taxes |
(68.4) |
106.2 |
||
• Changes in provisions |
411.8 |
(36.0) |
||
• Share of profit of associates |
4.0 |
(5.4) |
||
• Profit/loss on disposal of assets |
(454.7) |
27.5 |
||
• Net finance costs |
249.0 |
203.1 |
||
• Other non cash items |
124.8 |
132.3 |
||
Cash flow from operating activities before changes in net working capital |
4,932.4 |
5,292.1 |
||
Changes in working capital |
364.3 |
377.3 |
||
Other cash items |
(91.0) |
(98.7) |
||
Net cash flows from operating activities |
5,205.7 |
5,570.7 |
||
Investing activities |
|
|
||
Purchase of property, plant and equipment and intangible assets |
(2,630.2) |
(2,916.8) |
||
Acquisition of consolidated companies and financial assets |
(129.1) |
(659.8) |
||
Proceeds from sale of property, plant and equipment and intangible assets |
81.3 |
88.7 |
||
Proceeds from the sale of subsidiaries, net of net debt sold and from the sale of financial assets |
718.8 |
130.9 |
||
Dividends received from equity affiliates |
4.6 |
5.5 |
||
Net cash flows used in investing activities |
(1,954.6) |
(3,351.5) |
||
Financing activities |
|
|
||
Dividends paid |
|
|
||
• |
(1,307.9) |
(1,334.8) |
||
• Minority interests |
(78.6) |
(82.9) |
||
Proceeds from issues of share capital |
43.7 |
175.4 |
||
Purchase of treasury shares |
(49.9) |
(40.1) |
||
Net financial interests paid |
(255.1) |
(204.9) |
||
Increase (decrease) in borrowings |
(482.0) |
(17.2) |
||
Lease liabilities repayments |
(245.2) |
(241.4) |
||
Net interests paid on lease liabilities |
(36.6) |
(33.0) |
||
Transactions with minority shareholders |
(16.0) |
(36.8) |
||
Net cash flows from (used in) financing activities |
(2,427.6) |
(1,815.7) |
||
Effect of exchange rate changes and change in scope of consolidation |
(1.4) |
16.8 |
||
Net increase (decrease) in net cash and cash equivalents |
822.0 |
420.3 |
||
|
896.5 |
1,718.6 |
||
|
1,718.6 |
2,138.9 |
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 |
1,791.4 |
2,246.6 |
||
Bank overdrafts (included in current borrowings) |
(72.8) |
(107.7) |
||
|
1,718.6 |
2,138.9 |
Net debt calculation
(in millions of euros) |
|
|
||
Non-current borrowings |
(10,220.2) |
(10,506.3) |
||
Current borrowings |
(2,180.5) |
(2,188.6) |
||
TOTAL GROSS DEBT |
(12,400.7) |
(12,694.9) |
||
Cash and cash equivalents |
1,791.4 |
2,246.6 |
||
TOTAL NET DEBT AT THE END OF THE PERIOD |
(10,609.3) |
(10,448.3) |
Statement of changes in net debt
(in millions of euros) |
FY 2020 |
FY 2021 |
||
Net debt at the beginning of the period |
(12,373.3) |
(10,609.3) |
||
Net cash flows from operating activities |
5,205.7 |
5,570.7 |
||
Net cash flows used in investing activities |
(1,954.6) |
(3,351.5) |
||
Net cash flows used in financing activities excluding changes in borrowings |
(1,690.5) |
(1,593.6) |
||
Total net cash flows |
1,560.6 |
625.6 |
||
Effect of exchange rate changes, opening net debt of newly acquired companies and others |
443.1 |
(269.3) |
||
Adjustment of net finance costs |
(239.7) |
(195.3) |
||
Change in net debt |
1,764.0 |
161.0 |
||
NET DEBT AT THE END OF THE PERIOD |
(10,609.3) |
(10,448.3) |
The slideshow that accompanies this release is available as of
Throughout the year, follow Air Liquide on Twitter: @AirLiquideGroup.
UPCOMING EVENTS
Capital Markets Day
2022 1st Quarter Revenue
A world leader in gases, technologies and services for Industry and Health, Air Liquide is present in 75 countries with approximately 66,400 employees and serves more than 3.8 million customers and patients. Oxygen, nitrogen and hydrogen are essential small molecules for life, matter and energy. They embody Air Liquide’s scientific territory and have been at the core of the company’s activities since its creation in 1902.
Air Liquide’s ambition is to be a leader in its industry, deliver long term performance and contribute to sustainability - with a strong commitment to climate change and energy transition at the heart of its strategy. The company’s customer-centric transformation strategy aims at profitable, regular and responsible growth over the long term. It relies on operational excellence, selective investments, open innovation and a network organization implemented by the Group worldwide. Through the commitment and inventiveness of its people, Air Liquide leverages energy and environment transition, changes in healthcare and digitization, and delivers greater value to all its stakeholders.
Air Liquide’s revenue amounted to more than
________________________
1 Excluding exceptional and significant transactions that have no impact on the operating income recurring.
2 Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant items that have no impact on the operating income recurring, and excluding the impact of any US tax reform in 2022.
3 Due to the exceptional impact of the pandemic, a comparison with 2019 sales has been introduced for context in reviewing 2021 performance. The comparison between 2021 and 2019 is calculated by adding 2020 and 2021 comparable effects. It is given as a reference point and does not constitute an alternative performance measure. The comparable growths mentioned below are calculated compared to the same period of 2020 except when 2019 is mentioned.
4 See definition in appendix.
5 See definition and reconciliation in appendix.
6 See definition and reconciliation in appendix.
7 Due to the exceptional impact of the pandemic, a comparison with 2019 sales has been introduced for context in reviewing 2021 performance. The comparison between 2021 and 2019 is calculated by adding 2020 and 2021 comparable effects. It is given as a reference point and does not constitute an alternative performance measure. The comparable growths mentioned below are calculated compared to the same period of 2020 except when 2019 is mentioned.
8 See definition in appendix.
9 See definition and reconciliation in appendix.
10 Including transactions with minority shareholders.
11 See definition and reconciliation in Appendix.
12 Number of lost-time accidents with at least one lost day per million hours worked by Group employees.
13 In tons of CO2-equivalent, restated to include from 2020 and each following year the full year emissions of assets acquired and integrated after 2020, scopes 1 and 2. Scope 2 emissions calculated from the specific supplies (market-based): the Group hence adopted the methodology recommended by the GHG Protocol.
14 In kg CO2-equivalent/euro of operating income recurring before depreciation and amortization at 2015 exchange rate and excluding IFRS 16, with scopes 1 and 2 of reported greenhouse gas emissions, applying the “market-based” method for the scope 2.
15 See reconciliation in annex.
16 Excluding exceptional and significant transactions that have no impact on the operating income recurring.
17 Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant items that have no impact on the operating income recurring, and excluding the impact of any US tax reform in 2022.
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Source: Air Liquide
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