2018 SHAREHOLDER’S GUIDEI chooseto invest.I chooseAir Liquide.Share ownership starts with convictions.
Group profile CONTENTS in picturesThe Air Liquide PORTRAITS OF SHAREHOLDERSgroup FOR THIS FOURTH SEASON, SHAREHOLDERS EXPLAIN WHY THEY INVEST IN THE AIR LIQUIDE GROUPThe world leader in gases, technologies and services for They choose Air Liquide so they can:Industry and Health, Air Liquide is present in 80 countries withapproximately 65,000 employees and serves more than 3.5 millioncustomers and patients. Oxygen, nitrogen and hydrogen are Participate 07 Address 17 Benefit 25 in a world leader’s new challenges from long-termessential small molecules for life, matter and energy. They industrial adventure performanceembody Air Liquide’s scientific territory and have been at thecore of the Company’s business since its creation in 1902.Air Liquide's ambition is to lead its industry, deliver long-termperformance and contribute to sustainability. The Company’scustomer-centric transformation strategy aims at profitable growthover the long term. It relies on operational excellence, selectiveinvestments, open innovation and a network organizationimplemented by the Group worldwide. Through the commitmentand inventiveness of its people, Air Liquide leverages energy andenvironmental transition, changes in healthcare and digitization, Christophe - Shareholder who likes Léa - Budding shareholder who wants Armand - Shareholder and everydayand delivers greater value to all its stakeholders. to give things time to broaden her horizons ambassador of Air LiquideAir Liquide’s revenue amounted to €20.3 billion in 2017 and itssolutions that protect life and the environment represented more Contribute 37 Cultivate 45 Pass on 59than 40% of sales. Air Liquide is listed on the Euronext Paris stock On the cover to sustainability a relationship the shareholder culture based on trustexchange (compartment A) and belongs to the CAC 40, EUROSTOXX 50 and FTSE4Good indexes. FIND THE DIGITAL VERSION OF THIS GUIDE AT: airliquide.com/more-2018 FIND THE SHAREHOLDERS SECTION AT: airliquide.com/shareholders Air Liquide and I... We share a will to act. Manon - Values-oriented shareholder Claudine - Shareholder who knows Florian - Shareholder from one I chose Air Liquide shares how to speak up generation to the next as I believe they are Free copy. The information included in this Document is as at February 27, 2018. L’Air Liquide SA - Company the best way to place established for the study and application of processes developed by Georges Claude with issued capital my savings at the of 2,356,439,277.50 euros. Head Office: 75, quai d’Orsay - 75321 Paris Cedex 07 - France. Trade and service of meaningful Companies Register no. 552 096 281 / airliquide.com. PUBLISHED BY THE AIR LIQUIDE CORPORATE projects, associated COMMUNICATION DEPARTMENT IN ASSOCIATION WITH SHAREHOLDER SERVICES. Photo with everyday life. FACTSHEETS To guide you through And access augmented reality content credits: Thomas Laisné/La Company, Jakob Helbig/Offset, Air Liquide Advanced Business and Tech- I am proud to be part formalities, you will find on your smartphone or tablet via the nologies, Luc Deflorenne/Courtoisie Transalliance, Jean-Philippe Mesguen, Mourad Mokrani, scanrail/ of this adventure. factsheets throughout "Actionnaire +" app by scanning pages iStockphoto.com, Pierre-Emmanuel Rastoin, Future Biogas Ltd, Gilles Leimdorfer, Agnieszka Olek/ this document. that contain this icon. Caiaimage/Getty Images. Consulting, editorial, design and production: EXTREME Claire , 58 - Confident and proud Note: Past performances of Air Liquide’s share are not a guarantee of future results. shareholder (Index on the last page)
2017 EDITORIAL EDITORIAL results Improved performance of advanced materials for semiconductor etching. In addition to strong sales, the Group’s operating This offer has been very successful, in particular due performance continued to improve, with high efficiency to its environmental benefits. This sector is currently gains and synergies related to Airgas ahead of our fore- driven by the surge in Big Data, the development of casts that contributed to the increase in the operating artificial intelligence, virtual and augmented reality, margin and to higher net profit. Thanks to this strong the new generation of screens, and the connect- performance we will propose in 2018 the payment of a ed car. These market trends generate increased dividend of 2.65 euros(a) per share, which represents an demand for carrier gases and high value-added increase of +12.4% taking into account the attribution molecules. in October 2017 of one free share for 10 held. As you can see, at the beginning of 2018, your Group is The high level of cash flow made a significant contrib- stronger and better positioned. Our priorities this year ution to lowering net debt by nearly 2 billion euros in include focusing our efforts on growth and operation- the year. The balance sheet of your Group is therefore al excellence, the startup of major projects in Large strong enabling us to pursue selective investments. Industries scheduled for 2018 and the transformation New investment decisions for 2.6 billion euros have of our activities, leveraging on innovation and digital been made in 2017, and we currently have a 2.1 billion services, as well on the Airgas model and its strong euros industrial investment backlog. These invest- customer-centric culture. In light of this, I am confident ments will contribute to the future growth of your Group. in the Group’s medium-term growth outlook. Your Group is stronger and better positioned for 2018THANK YOU FOR Progress in 2017 and priorities for 2018 You have chosen Air LiquideCHOOSING AIR LIQUIDE Regarding our 2016-2020 Company Program, all the initiatives identified have now been launched. I would like to mention a few of them which are likely to The success of a company program depends on the commitment of its teams, the trust of its customers and the loyalty of its shareholders. And all this withBenoît Potier, Chairman and CEO provide new growth opportunities in energy transition, a long-term perspective. In this new edition of our healthcare and electronics. Shareholder’s Guide, we wanted to highlight what is behind the investment of shareholders. What are their In hydrogen energy, major progress has been made convictions, what ideas motivate them? This is why thanks to the Hydrogen Council founded early 2017. we have collected several testimonies, each story is a It is currently composed of more than 30 comp- personal journey illustrating the richness of our share anies from various sectors, and has successfully ownership. It is this trust-based relationship with each raised collective awareness of the interest of includ- and every one of you that we are committed to helpingDear Shareholders, global economic environment. All Gas & Services ing hydrogen energy in the future energy mix. grow over time. activities grew in 2017 and in particular Industrial The Council’s effectiveness is supported by a roadmap,A new scale for the Group Merchant, which now accounts for nearly half of our established by its members, outlining the potential of Thank you for your loyalty.In 2017, your Group has reached a new step in its devel- revenue and whose recovery was confirmed quarter this sector, as well as by a growing number of projectsopment and has taken on a new dimension thanks to after quarter. Global Markets & Technologies recorded in Europe, Asia and the United States.the successful integration of Airgas. This is reflected double-digit growth.in annual sales surpassing 20 billion euros and net On a geographic level, growth was mainly driven by In Healthcare, we have launched innovative Homeprofit higher than 2 billion euros. We are clearly seeing developing economies, China in particular, the solid Healthcare offers for patients with chronic diseases.the benefits of this major acquisition for Air Liquide level of activity in the Americas and Europe during the For example, we have developed a connected health-which has strengthened our positions for the future. second half, as well as Large Industries projects in care program for patients with heart failure in France. (a) Amount proposed for the 2017 fiscal year at the Annual General MeetingYour Group also benefited from a more favorable the Middle East. Finally, in Electronics, we have launched a new range on May 16, 2018. 4 5
EDITORIAL PARTICIPATE Participate in a world leader’s industrial adventure From the outset, Air Liquide’s industrial adventure has been based on the commitment and passion of its teams, the trust of its customers and the support of its shareholders. An adventure that has enabled the Group to become world leader. 65,000 employees Air Liquide’s entire foundation is rooted in science and its small molecules that are essential for life, matter and energy–oxygen, nitrogen, argon and hydrogen. Over 80 time, the Group has been able to add value to these molecules and has constantly countries innovated by developing new applications for industry and health. Backed by proprietary technologies and a long-term industrial vision, Air Liquide €20.3bn has developed a high-performance business model that mainly relies on investment in Revenue in skills and assets. The Group can rely on integrating and pooling together its industrial assets to cover the entire gas production and supply chain in 80 countries. €2.2bn Thanks to its ability to continuously innovate, the Group has conquered new markets Net Profit by developing tailor-made offers for specific local needs. (Group share) Over the years, Air Liquide has seized growth opportunities at the right time, as demonstrated by the acquisition of Airgas, and has transformed to meet 2017 data. customer and patient expectations with ever-increasing efficiency. 00_00 7
PARTICIPATE Air Liquide and I... It’s a way to share the industrial adventure of a French industrial flagship and world leader.In my opinion, the diverse sectors Air Liquide serves, its presence in more than 80 countries and its vast array of customers really demonstrate its strength. I am proud I have been participating in this long-term industrial adventure as a shareholder for more than 40 years. Christophe, 63 - Shareholder who likes to give things time 9
SECTORS SERVED GAS & SERVICES ACTIVITIESOur activities Chemicals LARGE INDUSTRIES PRODUCE AND DELIVERShared resources and expertise to serve diverse customers IN LARGE QUANTITIES Refining • Strategy of industrial basins €5,336M(b) and pipeline networks PRODUCTION • Long-term contracts (15 years), minimum Metals volumes guaranteed by take-or-pay clauses and indexed energy cost UNDERSTANDING OF ESSENTIAL SMALL MOLECULES O2 N2 H2 He Ar Oxygen Nitrogen Hydrogen Helium Argon Materials & energy CENTRALIZED PRODUCTION ON-SITE INDUSTRIAL MERCHANT • Air Separation Units PRODUCTION OFFERS Automotive & SUPPLYING INDUSTRIAL (oxygen, nitrogen, argon) AT CUSTOMERS' manufacturing AND SPECIALITY GASES, • Hydrogen and carbon APPLICATION TECHNOLOGIES monoxide production units Food & pharmaceuticals AND SERVICES €9,261M(b) FOR INDUSTRY ENGINEERING & AND HEALTH: • Tailor-made solutions Technology for numerous customers' businesses CONSTRUCTION & research • Diverse markets DESIGNING AND BUILDING • ESSENTIAL • Customer-specific supply methods PRODUCTION UNITS Professionals • Global solutions including SMALL MOLECULES & retail proprietary technologies VALORIZATION • Technological independence • Gives the Group • PROPRIETARY TECHNOLOGIES a competitive edge INTEGRATION AND • Creates growth with COMMERCIALIZATION HEALTHCARE third-party customers Hospitals TRANSPORT VIA PIPELINES SUPPORTING PATIENTS, ALL ALONG In gaseous form • SERVICES THE CONTINUUM OF CARE, AND DIGITAL FROM HOSPITAL TO HOME Home SOLUTIONS healthcare • Growing needs in healthcare €3,401M(b) • Solutions adapted to the increase €335M(a) Hygiene/ in chronic diseases TRANSPORT VIA TANKER TRAILERS Specialty • Increasing demand in hygiene products In liquid form ingredients and specialty ingredients Semi- ELECTRONICS €372M(b) conductors DESIGNING, MANUFACTURING AND PROVIDING MOLECULES GAS PACKAGING FOR THIS SECTOR Transition from liquid to gaseous form Flat panels €1,644M(b) • Technological solutions with ultra-pure GLOBAL MARKETS All gases including special gases, gases and advanced materials medical gases, gases for Electronics & TECHNOLOGIES Photovoltaic • Support solid growth in certain markets DEVELOPING NEW related to digital development MARKETS REQUIRING A GLOBAL APPROACH OR MARKETS WITH SIGNIFICANT Energy 2% 2% TECHNOLOGICAL transition 8% CONTENT 26% TRANSPORT OF CYLINDERS • High level of technological BY TRAILERS Maritime GROUP 17% expertise SALES Usually in gaseous form €20.3bn • High potential markets Scientific exploration 45%(a) Sales to third parties.(b) Revenue. 10 11 2017 data.
Latest PARTICIPATEGeographic newspresenceand 2017 highlights Local proximity €6,776M (a) Since the production of industrial gases is a local activity, the Group has gradually established a presence EUROPE • Opening of the first remote in all regions across the globe and now operates operation and optimization center for Air Liquide production in 80 countries. Each region has experienced their units in France • Long-term contracts with own growth dynamics. This geographic and industrial Arcelor Mittal in France and diversity contributes to the Group’s resilience. in Benelux to supply oxygen, nitrogen and argon • “Chronic Care Connect™”, e-health solution to remotely support patients suffering from certain chronic diseases at home, in France and in Spain AMERICAS EUROPE MIDDLE EAST ASIA-PACIFIC In North America, The Group’s leading AND AFRICA Rapid development the chemicals and energy business in Europe, The Group’s products in China and South sectors are the growth Healthcare offers and services support East Asia has created €4,081M (a) drivers. In the United States, bright prospects infrastructure a growing need for €8,150M (a) the leading industrial gas with the development development in the Middle infrastructure and energy, market worldwide, Airgas’s of home healthcare. East, especially in the with a particular focus AMERICAS ASIA-PACIFIC integration gave a new Large Industries is energy and petrochemical on energy efficiency. • Synergies related to Airgas ahead • Long-term contracts with three dimension to Industrial supported by major sectors. Air Liquide Growth has been steady • of plan for 2017 major Chinese optical fiber Merchant, which serves European industrial sets itself apart here in Large Industries and • Long-term contract with Pemex manufacturers to supply • in Mexico to supply hydrogen hydrogen, nitrogen, oxygen, many sectors, such as basins in which by implementing major in Industrial Merchant to be used to produce cleaner fuels helium, argon and carbon dioxide automotive, food and Air Liquide has developed industrial projects, such and is based on local • Acquisition of Sogo Sangyo pharmaceuticals. In South a vast pipeline network– as in Saudi Arabia (largest consumption. Kabushiki Kaisha in Japan, a major player in the home America, Air Liquide a competitive advantage hydrogen production site The region, and notably €635M (a) healthcare and medical contributes to the for the Group. Industrial in the world), and in South China, has been driven gases sectors development of Merchant benefits Africa (construction and by the semiconductors • Long-term contracts with leading electronic component infrastructures that require in particular from operation of the largest sector, holding a large MIDDLE EAST manufacturers in China, Japan large quantities of industrial momentum in the food, oxygen production unit portion of the Group’s AND AFRICA and Singapore to supply gases. Healthcare is also pharmaceutical for Sasol, a long-standing Electronics business. • Long-term contract with Orpic ultra-pure carrier gases in Oman to supply nitrogen supported by high demand, and research and partner). Throughout the Growing in the region, to a plastic manufacturing site particularly in Brazil technology sectors. entire region, Industrial Healthcare is dynamic, • Commissioning of the world’s and in Argentina, and by Lastly, environmental Merchant has benefited especially in Japan. largest oxygen production unit (a) 2017 revenue in million euros. acquisitions like in Canada protection solutions– from a strong industrial Air Liquide is also starting in South Africa for Sasol, an international integrated energy The geographic analysis of 2017 performance for the past several years, such as clean transport, growth, and Healthcare to position itself in the and chemicals company can be found in the management report published on February 15, 2018 and included and in Colombia for instance–are growth has benefited from growth up and coming Chinese in the 2017 Reference Document. more recently. drivers. in home healthcare. healthcare market. 13
PARTICIPATE PARTICIPATEA customer-centrictransformationSince the acquisition of Airgas, Air Liquideserves more than 3.5 million customers andpatients around the world. Air Liquide’s strategyaims to constantly improve customer and patientsatisfaction as well as provide brand newand efficient solutions to meet their needs. my customer week” enabled more than concrete and encourages all employees 4,000 employees to interact directly with to better integrate customer expecta- customers. Next, optimize each contact tions in their daily decisions. with our customers to simplify inter- My relationship with In the area of research, customer actions and make them smoother. Lastly, What are customers’ feedback? Air Liquide is based service is crucial. To ensure listen to our customers even more. Regardless of their satisfaction level, on values such as listening, that our researchers’ work is not they perceive this type of process assistance and a desire interrupted when a gas cylinderAudrey Eudeline, With the “Voice of Customer” in a very positive way. Asking for their to develop my skills becomes empty, we collaboratedDirector of “Customer Experience” program? opinion to identify areas for improvement, in technical matters. with Air Liquide in order to setat Air Liquide Exactly. This program is based on a contacting them directly and quickly It’s important and reflects up a stock of cylinders directly digital solution that collects customer when a problem is identified and ensur- how Air Liquide values at our sites. Products are available testimonials, which are read and used ing it is solved–this is obviously a good its customers. It contributes immediately if the laboratories in real-time by our teams. Analyzing thing for them because this progress to building trust. run out, which truly is a customizedImproving customer satisfaction, this information to better identify our demonstrates how important they Guillaume Penigault response.what does that mean exactly? customers’ needs and expectations are to us. Head of Purchasing, KorianWe want to be the leader in customer is important, but not new. However, Ludovic Dehrisatisfaction in our market. A successful the immediate availability of individual What are the initial significant Head of Works, Maintenance and Logistics,customer experience means satisfying testimonies enables Air Liquide to impacts of this program? ESPCI Paris (École Supérieure de Physiquethe customer during every interaction manage each customer in a personalized Benelux has rolled this out as a pilot et de Chimie Industrielles de la ville de Paris)with Air Liquide (request for information, way. And this is new. program and is already seeing initialorder, delivery, invoicing, after-sales results. Customer testimonials enabledservice, etc.). To accomplish this, the How can we truly talk about them to identify areas for improvement,Group focuses on three areas. transformation? including, for example, transforming theFirst, increase attention to customers at This program, which has started being customer service center located in theall levels of the Company, not only within rolled out within the Group, enables Netherlands. An inspiring model for thethe sales teams or customer relations employees to access every customer’s other subsidiaries that are currentlyteams: in Asia for instance, a “Meet opinion directly. This makes things very rolling out the program. 14 15
ADDRESS Address new challenges Scientific and technological advances, changes in people’s aspirations, and the emergence of new usages involve new challenges and create new opportunities. Air Liquide has identified three major trends that represent additional sources of growth.€292M Energy transition is underway; ageing population and increasing chronic diseasesGroup innovation are impacting the healthcare sector; digitization is changing the way things are done.expenses in 2017 Air Liquide, open to the world and attentive to its customers, is committed to anticipating society’s major challenges and adapting its offers to always better meet customers' expectations. As a result, the Group offers brand new and ef-×10 ficient solutions to help its customers become more competitive and make thePotential growth difference in their markets.in demand for Similarly, in Healthcare, Air Liquide is developing new services to meet healthcarehydrogen by 2050(a) professionals’ expectations and improve patient quality of life, particularly by improving adherence to treatment.(a) Source: study, “Hydrogen, scaling up”, The Group can rely on its innovation capabilities and especially on its open inno-Hydrogen Council / McKinsey, 2017 vation process to help customers and patients overcome these challenges. 17
ADDRESS Air Liquide and I... It is a shared desire to address major challenges. For my first stock market investment experience, I chose this visionary Group that constantly innovates. Air Liquide is a Group capableof investing in cutting edge French startups. With this Group, I almost feel like a “business angel”... but in a 115-year-old startup! Léa, 29 - Budding shareholder who wants to broaden her horizons 19
ADDRESS ADDRESS Find out moreChallenges as a sourceof growthUnderlying the major challenges faced by oursociety, Air Liquide has identified major trendsto which the Group can contribute by providingsolutions. The challenges our society face arethe same ones our clients and patients face.As a result, these changes can create new sourcesof growth, particularly for pioneer companies.ENERGY AND CHANGES DIGITIZATION ENERGY AND ENVIRONMENTAL TRANSITION For clean transportationENVIRONMENTAL TRANSITION IN HEALTHCARE The development of connected devicesGlobal warming as well as natural and Healthcare and well-being are growing and infrastructures that allow to store andenergy resource constraints are requir- global challenges with issues ranging broadcast a massive amount of dataing us to find new ways of producing, living from an ageing population to an in- generates new needs and usages: newand travelling. For its industrial customers, crease in chronic diseases, as well as a ways of living, working, travelling, com- C o m m i t te d to c l e a n m o b i l i t y, vided approximately 100 hydrogen sta- is fully decarbonized by substituting aAir Liquide offers high-performance solu- growing demand for medical treatment. municating... This creates opportunities Air Liquide is rolling out a network of tions around the world. Air Liquide may diesel-fueled refrigerating unit with ations to reduce greenhouse gas emissions Air Liquide is therefore developing for all the Group’s activities (connected hydrogen stations as well as multi- also supply hydrogen through the multi- nitrogen-fueled refrigerating unit. Mo-and energy consumption. The Group also new products and services for health- cylinders, products and services for Elec- energy stations around the world. energy stations currently being rolled out. reover, the marked reduction in noiseintends to overcome challenges related to care professionals and patients, in the tronics and Healthcare, etc.). Air Liquide through this combination opens upclean mobility, particularly by committing following areas: medical gases, home is taking advantage of this digital transfor- HYDROGEN, MULTI-ENERGY STATIONS FOR opportunities for night-time deliveries,to promote hydrogen energy, in which the healthcare, hygiene and specialty mation to offer its customers the best ex- A SOLUTION FOR THE FUTURE ROAD TRANSPORTATION which helps relieve city-center traffic andGroup has developed unique expertise. ingredients. Some of these offers are perience in its sector by developing digital The world of energy is undergoing tre- These stations, for which the European thus reduce pollution in urban areas.As a result, Air Liquide co-founded with benefiting from the emergence of digital solutions to optimize the management of mendous change and hydrogen is one of network should grow by 10 to 20 sta-Toyota the Hydrogen Council, which technologies. For instance, the Group its Assets, improve interactions with its the solutions in the future energy mix so- tions per year, deliver several gasesbrings together more than 30 major inter- is developing e-health solutions that Customers and patients and leverage its lutions that will enable us to meet challen- (compressed or liquefied natural gas,national players, to convince governments better monitor patients and treatment Ecosystems to ensure the organization ges related to clean transportation: including biomethane, which is renewableand investors of this sector’s potential. adherence. is agile and efficient (“ACE” strategy). reducing greenhouse gases, pollution natural gas), which supply trucks trans- in cities and dependence on fossil fuels. porting cargo and trucks equipped with Used in fuel cells, hydrogen combines a cryogenic unit for refrigerated trans- Nearly 100 with oxygen from the air to produce elec- portation (liquid nitrogen). Compressed tricity while only emitting water, so it has or liquefied natural gas replaces conven- major potential to supply clean energy. tional fuels, which reduces particulate CONNECTED TO INNOVATION ECOSYSTEMS To help increase the widespread use of matter and CO2 emissions, particularly In order to seize new growth opportunities, the Group relies on its innovation capability which improves competitive- hydrogen in the transportation sector, when the natural gas supplied is biome- ness and helps the Group penetrate new markets. This innovation is part of an ecosystem that is becoming increa- Air Liquide has helped roll out recharging thane. Associating this biomethane with Number of hydrogen stations designed and singly open to external partners in order to propose additional technologies and accelerate the Group’s transformation. stations in all continents. By the end of the Blueeze™ nitrogen cryogenic solution provided by the Group 2017, the Group had designed and pro- means that refrigerated transportation as at the end of 2017 20 21
ADDRESS ADDRESS Find out more CHANGES IN HEALTHCARE DIGITIZATION“Chronic Care Connecttm”, using digital Transforming to improvetechnologies to better monitor patients customer satisfactionAir Liquide’s e-health solution offers monitoring center in constant contact The Group’s customers are changing AN OPEN ECOSYSTEMhome monitoring for patients with with the patient and their physician. In and expressing new needs and usages. This approach is part of Air Liquide’s openchronic diseases. the event of an anomaly, an alert system Air Liquide leverages digital solutions innovation strategy, which includes col- notifies the center. For mild cases, and to meet these needs, in particular in laborating with external partners (tech-Remotely from a certified care center, with the treating physician’s agreement, terms of Assets management. nology institutes, SMEs, startups, etc.) toAir Liquide nurses can monitor patients a nurse will consult with the patient via accelerate the Group’s innovation. For 47%who are at home with diabetes, heart telephone. If the patient’s condition By integrating the latest digital tools with- example, work carried out with the start-failure or respiratory insufficiency, thanks worsens or if an adjustment in treatment in its Large Industries production units, up Zelros resulted in the development ofto digital technology. The patient uses seems necessary, the nurse transmits Air Liquide can extract and analyze a chatbot that supports industrial opera-one or more connected measurement this information to the physician, who mo- operational data. Information obtained tors when they are performing mainte-system(s) (blood pressure machine, nitors the patient remotely and visits their Increase in likelihood helps optimize equipment maintenance, nance work. This contributes to greaterpulse oximeter, glucose monitor, etc.) home for further treatment if needed. of survival one year anticipate incidents and facilitates de- operational efficiency which leads to a 1bn out(a) for chronic heartaccording to a physician-approved mo- failure patients who cision-making to improve the supply better performance and greater reliability,nitoring protocol. PROVEN EFFICIENCY benefited from this type of industrial gases to customers. By and thus more customer satisfaction. The “Chronic Care ConnectTM” program is of monitoring automating and centralizing opera-PERSONALIZED SUPPORT currently being rolled out in France and in tions, the Group can also optimize theEach piece of equipment is connected Spain. Air Liquide’s connected monitoring (a) Herold R, et al. Telemedical Care and performances of a plant, and notably per dayto a digital tablet enabling the patient to solution has demonstrated a significant in- Monitoring for Patients with Chronic Heart its energy consumption. This allowsaccess their own monitoring. The me- crease in likelihood of survival for patients Failure Has a Positive Effect on Survival. Air Liquide to generate efficiencies and That is the number of data Health Services Research, 2017 points that Air Liquide collectsdical data is transmitted and analyzed with chronic heart failure and a reduced https://www.ncbi.nlm.nih.gov/ also to reduce its environmental impact at its 400 production sitesremotely by nurses at the Air Liquide number of re-hospitalizations(a). pubmed/28138988. (avoiding indirect CO2 emissions). around the world 22 23
BENEFIT Benefit from long-term performance With a strong business model– proprietary technologies, positions€45bn in industrial basins around the world,Market capitalization long-term contracts, a wide varietyas at 12/31/2017 of customers, and innovation– Air Liquide delivers strong and+ 8.60%Average annual consistent performance year after year.dividend growthover 30 years Financial performance regularity, which helps add to the Group’s stock market+ 10%Loyalty bonus for value, enables Air Liquide to develop shareholder loyalty. Every year, the Groupregistered shareholders pays shareholders a dividend. The dividend typically accounts for approximately 50% of net profit, and demonstrates the Group’s desire to include shareholders in its success. On top of this pay-out ratio, the Group regularly grants free shares29Number of free share to shareholders and a loyalty bonus system to those that have held their shares inattributions since registered form for more than two full calendar years. As a result, a portfolio thatAir Liquide was created expands over the long-term and a sustainable loyalty of shareholders. 25
BENEFIT Air Liquide and I... It’s a long-standing history. I appreciate that the Group rewards my loyalty. To me it showshow much they value my investment, and this means a lot to me. And it’s one of the reasons why I don’t hesitate to recommendinvesting in Air Liquide to my family and friends. Armand, 65 - Shareholder and everyday ambassador of Air Liquide 27
20 years +8.42% per year over 10 years €158.16 +9.60% per year over BENEFIT Performance BENEFIT 5 years of your sharesGROUP REVENUE 20,349In millions of euros 11,801 A REWARDING COMMITMENTFOR €100 INVESTED IN 2007 FOR €100 INVESTED IN 1997 FOR €100 INVESTED IN 2012 +6% Long-lasting 5,851 Air Liquide Value of portfoliohas always31,been at December driven 2017 and averageby thegrowth, annual will tobefore involve taxes.its shareholders in its success. The Company’s share price has3,577 AVERAGE Note: the Preferential Subscription Rights relating to the capital increase undertaken in September 2016 are recognized as having been sold, then reinvested in shares. ANNUAL been growing steadily and has outperformed the CAC 40 over a 10-year period and more. Moreover, the dividend, the GROWTH attributions of free shares and the payment of loyalty bonuses also contribute to the share’s return over the long term. performance OVER 30 YEARS(a) Long-term stock market performance1987 1997 2007 2017 Growth as at 12/31/2017ADJUSTED NET EARNINGS(b) PER SHARE 5.16 OVER FINANCIAL PERFORMANCEIn euros VALUE VALUE 2.90 €140 €739.31 OVER 5 YEARS €140In 2017, Group sales have surpassed1.17 20 billion euros. The improvement in the Group’s operating performance +7.5% €120 +10.52% per year over 10 YEARS €224.52 Air Liquide +37.30% CAC 40 +45.91% €1200.59 AVERAGEcould be seen in the increase in the operating margin and a higher net profit (Group share) reaching 2.2 billion euros. 20 years +8.42% Air Liquide +66.10% Share at €76.51Synergies related to Airgas, ahead of our forecast, have contributed to this performance. Lastly, the balance ANNUAL OVER per year CAC 40 - 5.37% over 10 years €158.16 GROWTHsheet is strong: the high level of cash flow making a significant contribution to lowering debt. OVER 30 YEARS(a) €100 20 YEARS Share at €63.25 +9.60% per year over 5 years €100 Air Liquide +296.69%1987 1997 2007 2017 €80 CAC 40 +77.15% €80GROUP REVENUE 20,349 Share at €26.48In millions of eurosADJUSTED DIVIDEND(b) PER SHARE 2.65(c)In euros 11,801 €60 FOR €100 INVESTED IN 1997 FOR €100 INVESTED IN 2007 FOR €100 INVESTED IN 2012 €60 5,851 1.39 +6% +8.6% Value of portfolio at December 31, 2017 and average annual growth, before taxes. €40 €403,577 AVERAGE Note: the Preferential Subscription Rights relating to the capital increase undertaken in September 2016 are recognized as having been sold, then reinvested in shares. ANNUAL 0.43 AVERAGE GROWTH Share at € 105.050.22 ANNUAL 2017 performance: OVER 30 YEARS(a) €20 €20 GROWTH Air Liquide + 9.38% OVER 30 YEARS(a) CAC 40 + 9.26% €0 €01987 1997 2007 2017 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20171987 1997 2007 2017 Growth as at 12/31/2017ADJUSTED NET EARNINGS(b) PER SHARE (a) Calculated according to prevailing accounting rules over 30 years. 5.16 Share price adjusted to take into account the stock split in 2007, the free share attributions, and the capital increase OVER Air LiquideIn euros VALUE in 2016 linked to the acquisition of Airgas. Share price as at 12/31 of the year concerned. VALUE (b) Adjusted for the 2-for-1 share split in 2007, for attributions of free shares and for a factor of 0.974 reflecting the value of the rights of the capital increase completed in October 2016. 2.90 Note: past performances of Air Liquide’s share are not a guarantee of future results. €140 OVER 5 YEARS CAC 40-indexed €140 +7.5% (c) Proposed for the 2017 fiscal year at the Annual General Meeting on May 16, 2018. Air Liquide +37.30% 1.17 AVERAGE A steadily expanding portfolio €120 10 YEARS CAC 40 +45.91% €1200.59 Air Liquide +66.10% Share at €76.51 ANNUAL OVER A shareholder who invested €100 in Air Liquide shares in registered form in 1997, reinvested his dividends CAC 40 - 5.37% GROWTH OVER 30 YEARS(a) in shares €100 20 YEARS and benefited from the free share attributions, both eligible Share atfor the loyalty bonus, would own a portfolio €63.25 €100 amounting Air to €739.31 at December Liquide +296.69% 31, 2017.1987 1997 2007 2017 €80 CAC 40 +77.15% €80 Share at €26.48ADJUSTED DIVIDEND(b) PER SHARE 2.65(c) €60 €739.31 €60In euros +10.52% per year over €224.52 1.39 +8.6% €40 20 years +8.42% per year over 10 years €158.16 €40 0.43 AVERAGE Share at €+9.60% 105.050.22 ANNUAL €20 per year over 2017 performance: 5 years €20 GROWTH Air Liquide + 9.38% OVER 30 YEARS(a) CAC 40 + 9.26% 20,349 €0 €0GROUP REVENUE 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017In millions of euros 1987 1997 2007 2017 11,801 Share priceFOR €100 adjusted to INVESTED IN 1997 take into account the stock split in 2007, the freeFOR share€100 INVESTED attributions, IN and the 2007increase capital FOR €100 INVESTED IN 2012 +6% (a) Calculated according to prevailing accounting rules over 30 years. Air Liquide in 2016 linked to the acquisition of Airgas. Share price as at 12/31 of the year concerned. 5,851 (b) Adjusted for the 2-for-1 share split in 2007, for attributions of free shares and for a factor of 0.974 reflecting the value of the rights of the capital increase completed in October 2016. Note:ofpast Value performances portfolio of Air at December 31,Liquide’s 2017 andshare are not average a guarantee annual of future growth, before results. taxes. CAC 40-indexed3,577 (c) Proposed for the 2017 fiscal year at the Annual General Meeting on May 16, 2018. AVERAGE Note: the Preferential Subscription Rights relating to the capital increase undertaken in September 2016 are recognized as having been sold, then reinvested in shares. ANNUAL GROWTH 28 OVER 30 YEARS(a) 291987 1997 2007 2017
FACTSHEET FACTSHEET 1 2Stock orders Free sharesWhat type of stock order should I choose? What are the benefits?The stock market is a regulated market that brings together companies Air Liquide regularly issues free shareswith funding requirements and investors, including individual investors. to all of its shareholders.Shares are bought or sold through a stock order.Understanding the stock market Grow your number FIGURES of dividend-paying shares FOCUS ON SHARE ID SHEET For all shareholders, free share attributions enable you to expand your YOU KEEP portfolio over time. THE SAME BENEFITS Air Liquide share as at In addition to passing on approximately 50% of profits to shareholders by December 31, 2017 paying dividends, Air Liquide distributes a portion of its retained earnings(a) Free shares have the same character- Finance Continuous trading on EURONEXT to shareholders in the form of free shares. These are free shares attributed istics as the shares they are derived Provides information in proportion to the number of shares you already hold. Vote at the Annual Paris (COMPARTMENT A) from: Pays a dividend General Meeting (a) Past undistributed net profits. Value Code: • loyalty bonus ISIN FR0000120073 • seniority Par value: €5.50 • voting rights INVESTORS • dividend rights Number of shares: 428,397,550 shares Benefit from an additional Closing price: €105.05 Market capitalization: €45bn 10% of free shares Weighting in the CAC 40 index: Share trading 3.87% If you hold your registered shares for more than two full calendar years, Weighting in the EURO STOXX 50 the loyalty bonus gives you a 10% increase in the number of free shares you will receive(b). INSTITUTIONAL INDIVIDUAL index: 1.88% For example, in the attribution in 2017, one free share was given for every FIGURES INVESTORS INVESTORS 10 shares held, each shareholder who owned 100 shares received 10 new shares. Shareholders eligible for the loyalty bonus received REGULAR an additional free share. ATTRIBUTION Free shares have already been distri- (b) In accordance with Air Liquide’s articles of association. buted 29 times by the Group. The lastChoosing the right stock order PLUS attribution took place in October 2017.To trade on the stock exchange, you can place an order with your regular financial REDUCED BROKERAGEintermediary or directly with Air Liquide if you are a direct registered shareholder. RATEThe most frequently used stock orders are as follows: Direct registered shareholders, when1 “Limit price” order 2 “Best price” order 3 “Market price” order placing your orders online via your per-You set a maximum buy or You did not specify an exact There is no price limit on this sonal online account(a), you have theminimum sell order (limit). price. The order will be exe- order. This order is given option to benefit from a reduced broker-The buy order is executed cuted at the best price avai- priority over all other types age rate of 0.10% before tax instead ofonly when the market price is lable when it reaches the of orders. It is fully executed. 0.18% before tax for purchases paid inlower than or equal to this limit market, for both buy and sell full by SEPA automatic debit(b) or by bank GOOD TO KNOWand the sell order when the orders. The order may be par- card(c), as well as for sales.market price is higher than or tially executed if the quantity Fractional rights must be included in your total sales when paying your capital gains tax. Theequal to this limit. The order of negotiable shares on the (a) Subject to having signed an account agreement. Only applicable to accounts amounts received are taxable from the first euro. They are included on your Tax Reportingmay be partially executed if the market is not available at this with full ownership. Form (IFU). They are not subject to a tax deduction relating to their seniority (see factsheet 3).quantity of negotiable shares best price. (b) Only if the account is domiciledon the market is not available in the SEPA zone. (c) For purchases below €3,000. Do not forget to include them on your tax return.at the set limit price. 30 31
FACTSHEET FACTSHEET Taxation web conference 3 4Capital gains DividendsHow to calculate them? When and how do I receive them?The gain on the sale of shares is called a capital gain. It is the difference The dividend is the portion of the Group’s net profit that is distributed to shareholders.between their sale amount and their purchase amount. At Air Liquide, this portion represents about 50%; a sign of the Group’s commitment to sharing the fruits of its growth with you. SHARE SALE SHARE ACQUISITION Dividend payment AMOUNT AMOUNT The dividend will be paid out on May 30, 2018. Your bank account will be credited in the following days, depending on the processing PLUS time needed by your financial institution. (Unit sale price (Unit purchase price Direct registered shareholders: if you have changed your bank details, please send AN ADDITIONAL × number of shares) × number of shares)(a) us your new Bank Identification Statement accompanied by an identity document. 10% IN DIVIDENDS CAPITAL GAIN OR LOSS NET If you hold your registered shares for OF BROKER FEES more than two full calendar years, the Sale transaction fees and taxes Purchase transaction fees and taxes You don’t have loyalty bonus gives you the right to a 10% increase in the dividend(a). to do anything (a) In accordance with Air Liquide’s articles of If you hold direct registered shares, association. the dividend, net of withholding taxes, is distributed by Air Liquide directly into your bank account. If you hold intermediary registered shares or bearer shares, Air Liquide distributes the gross dividend to your financial institution, which will thenThis information is included This information is included PLUS credit your account with the net dividend.in your sale transaction in your purchase transactionstatement. statement. CAPITAL GAINS TAXATION IN FRANCE (a) Unit purchase price adjusted where required for the attribution of free shares 2018 dividend FOCUS ON during the share holding period. If you are a French resident: you can estimate the net acquisition price of calendar DIVIDEND PAID IN 2018 your shares and your capital gains May 25 May 28 May 30 €2.65 per share(b) representing 53% and taxes owed using the tax simul- Last execution day for buy Ex-dividend date. Dividend payment of net profit (Group share) ators available at airliquide.com/ orders for shares acquired The opening price on date. Shareholders. (b) Amount proposed for the 2017 fiscal year at the in this way to be eligible for this day is reduced by the Annual General Meeting on May 16, 2018. the 2017 dividend. amount of the dividend. Direct registered shareholders: our experts are available to explain how to calculate your capital gains and how shares are taxed in France. GOOD TO KNOW TAXATION OF DIVIDEND IN FRANCE FOR THOSE RESIDING OUTSIDE FRANCE FOR TAX PURPOSES GOOD TO KNOW A statutory rate equal to at least 30% is withheld upon dividend payment by your account TWO SCENARIOS THAT PROVIDE EXEMPTION FROM CAPITAL GAINS TAX IN FRANCE manager (Shareholder Services for direct registered Air Liquide shares, your financial institution for Having a share savings plan, and keeping your shares for a period of five years from the intermediary registered or bearer Air Liquide shares). However, in most cases, a tax agreement(c) is account opening date. The capital gains realized after this period are only subject to social signed between France and your country of residence. The main aim of this agreement is to set a security contributions. Important: shares from another account cannot be transferred to a share flat tax rate which is withheld from your dividends. To benefit from this rate, you must send Form savings plan. Only transfers from the share savings plan’s cash account can be used to invest 5,000 (d) (corresponding to the request to apply the rate adopted in the agreement), completed in shares. The cash investment limit is €150,000 per plan. and signed by the tax authorities of your place of residence, to your account manager by mid- aking a gift is still fully exempt from rights, taxes and social contributions up to maximum M April. This Cerfa form can be downloaded from impots.gouv.fr. It must be resent to your account amounts set by French law. Unrealized capital gains on shares are then tax exempt, as long manager each year, otherwise the statutory rate will be applied upon payment of the dividend. as the transaction is reported to the tax authorities (see factsheet 11). Plan to make your end- (c)Tax agreement: a treaty between two countries aimed at avoiding the double-taxation of non-residents of-year gifts from September. (d) The Cerfa 5 000 is also known as Cerfa n°12816*01-02 32 33
FACTSHEET FACTSHEET Tax simulators 5 6Your 2018 tax return Your 2019 tax returnfor income in 2017 for income in 2018What is new this year? What tax changes are implemented?The elements of taxation in this factsheet apply to French residents for tax purposes. The elements of taxation in this factsheet apply to French residents for tax purposes.The only change is an increase in the social contributions rate from 15.5% to 17.2% When you fill out your tax return in 2019, you will have the choice between the currenton capital gains on sales and any fractional rights. mechanism and the 30% flat tax for the taxation of your investment income, including dividends received in 2018 and capital gains made in 2018.Capital gains taxation on sales Capital gains taxation on salesand any fractional rights(a) DATES DATES Shares• Social contributions: 17.2% • Social contributions: 17.2% acquired• I ncome tax based on a progressive scale, after any deductions for seniority from THE PAYMENT OF TAX • I ncome tax based on a progressive scale, after any deductions for BEFORE seniority: 50% for share seniority of between two years and less than THE PAYMENT OF capital gains made on sales: 50% for share seniority of between two and less than ON DIVIDENDS RECEIVED 01/01/2018 eight years, 65% for share seniority of at least eight years. eight years, 65% for share seniority of at least eight years. TAX ON DIVIDENDS IN 2017 IS CARRIED OUT OR RECEIVED IN 2018Reminder: The tax authorities consider compensation for fractional rights as a capital IN TWO STAGES: IS CARRIED OUT • 30% flat tax on capital gains on sales (without taking into account anygain on sale without deduction. This is included on your tax reporting form (IFU). deductions for seniority). IN TWO STAGES: 1. In 2017 when dividends are paid • If you have sent a request to your(a) Fractional rights correspond to compensation received for the portion of the share that cannot be account manager for exemption 1. I n 2018 when dividends Sharesdistributed if the number of shares that you own at the time of the free share attribution is not a multiple • Social contributions: 17.2% are paidof the transaction multiple. from the 21% advance withholding acquired • Income tax based on a progressive scale, without taking into account • If you have sent a request to on dividends before November 30, AFTER any deductions for seniority. your account manager for 2016, only the social contributions 01/01/2018 exemption from the 21% ad- of 15.5% have been withheld; OR • I f you did not fulfill the require- vance withholding on divi- ments to benefit from this exemp- •3 0% flat tax on capital gains on sales (without taking into account any dends before November 30,Dividend taxation tion, social contributions of 15.5% deductions for seniority). 2017, only the social contribu- have been withheld along with an tions of 17.2% will be withheld; advance withholding of 21%. • If you do not fulfill the requi-• S ocial contributions: 15.5% rements to benefit from this (already withheld in 2017 when dividends were paid) exemption, social contributions• I ncome tax based on a progressive scale on the amount of gross dividends after the 40% deduction, minus potential handling fees. 2. The balance in 2018 when you pay your 2017 income tax. Taxation of dividends of 17.2% will be withheld along with an advance withholding (regardless of the acquisition date of shares) of 12.8% (instead of 21% pre- viously), i.e. a total withholding • Social contributions: 17.2% • 30% flat tax on capital gains of 30%.Two scenarios that • I ncome tax based on a progressive scale on the amount of gross dividends OR on the gross amount of dividends (without taking into account 2. The balance will be appliedprovide exemption after the 40% deduction. the 40% deduction). in 2019 when you pay yourfrom capital gains tax 2018 income tax, accord- ing to the taxation methodHaving a share savings plan, and keeping your shares for a period of five years Choice of taxation method chosen.from the account opening date. The capital gains realized after this period are onlysubject to social contributions. Important: shares from another account cannot be The choice between the current mechanism and the 30% flat tax must be made in 2019.transferred to a share savings plan. Only transfers from the share savings plan’s cash FOCUS ON For any given year, the mechanism chosen must be the same for the capital gains tax andaccount can be used to invest in shares. The cash investment limit is €150,000 per plan. that of the dividends tax. Your entire securities portfolio must be taxed in the same manner. ISF-IFI You may however choose a different mechanism each year. Air Liquide therefore advisesMaking a gift is still fully exempt from rights, taxes and social contributions up to you to assess your overall taxation of dividends and capital gains from sales using bothmaximum amounts set by French law. Unrealized capital gains on shares are then tax As of 2018, the French wealth tax methods before making your decision.exempt, as long as the transaction is reported to the tax authorities (see factsheet 11). (ISF) has been replaced by thePlan to make your end-of-year gifts from September. French wealth tax on real estate (IFI) which no longer applies to securities.The “ What is new with shareholder taxation? ” web conference, presented by theGroup’s experts, can be found on airliquide.com/Shareholders. 34 35
CONTRIBUTE Contribute to sustainability Long-term performance and contributing to sustainability are at the core of Air Liquide’s ambition. The Group has also determined several prerequisites to action: safety, ethics and the respect of human rights and the environment. Air Liquide’s strategy to contribute to sustainability focuses on two areas defined by the NEOS Company Program: improving air quality and preventing global warming, and strengthening dialog with Group stakeholders.More than 40% For Air Liquide, responsible commitment means striving to improve air quality andPercentage to prevent global warming. Air is a common, vital and universal good. Its qualityof sales relatedto protecting life is being threatened in many regions around the world by unbalanced develop-and the environment ment, causing public health issues (heart diseases and respiratory diseases) and exacting a substantial cost, both human and financial, to society. The GroupClose to 30% prioritizes developing solutions for a cleaner industry and cleaner transportation.Percentage of Continuous and extensive dialog with its stakeholders is the second focus area forinnovation expenses the Group’s sustainable development strategy. It is by collaborating and workingallocated to reducingCO2 emissions(a) together with them that the Group can contribute to a more sustainable world. This is why local initiatives are encouraged as part of Air Liquide's Sustainable Devel-(a) By reducing the carbon content of AirLiquide products or those of its customers. opment Program. The Air Liquide Foundation also contributes to these through2017 data. its own projects. 37
CONTRIBUTE Air Liquide and I... It wasn’t obvious at first... But the Group’s values and responsible commitment positively surprised me. I appreciate its concrete and sustainable solutions to meet major challenges that are going to impact our lives, such as climate change or publichealth. I have the feeling my savings are in line with my convictions. Manon, 26 - Values-oriented shareholder 39
CONTRIBUER CONTRIBUTE CONTRIBUER CONTRIBUTE Find out moreSolutionsto lower emissionsand re-use CO2Climate change is a major challenge.Many of the Group’s initiatives allowto reduce CO2 emissions. 1. 2.LOWER CAPTURE SUBSTITUTEOXY-COMBUSTION CRYOCAP™, BIOGAS,TO IMPROVE EFFICIENCY COLD CAPTURE SYSTEM A RENEWABLE ENERGYBurning a fuel using oxygen-enriched Cryocap™ is a process developed by Produced during the methanizationair–oxy-combustion–is an effective Air Liquide at its site in Port-Jérôme of biomass (household, industrial andsolution for reducing CO2 emissions of (Seine-Maritime). It captures CO2 emis- agricultural waste, etc.), biogas can betraditional industrial activities. Enriching sions released during the production converted into biomethane via a purifi-the air with oxygen whilst burning fossil of hydrogen by natural gas reforming. cation process, then be used as a subs-fuels improves the combustion process The idea is to use low temperatures titute for natural gas. This biomethane,and reduces CO2 emissions. Oxy-com- (cryogenic process) to compress, liquefy, which can be injected into the natural gasbustion can also result in obtaining more then separate the gases (CO 2 on one network, used as a fuel for vehicles orconcentrated CO 2 emissions, which side, H2 on the other). In addition to the also as a source of energy for producingcan then be captured and then stored environmental benefit–60 to 90% of CO2 clean hydrogen, significantly reducesor re-used. Air Liquide participates emissions are captured–the process the ecological impact. 3.in numerous research programs on is also economically interesting as thethis type of combustion as well as on captured CO2 is purified then packaged 1. Oxy-combustion / 2. CryocapTM / 3. Biogascapture technologies for the gas issued for sale. The 100,000 metric tonsfrom combustion. recovered every year on this site is of interest to food industries in particular for carbonating beverages, as well as for CO2 IS ALSO AN ESSENTIAL MOLECULE FOR LIFE food preservation and freezing. Enriching the atmosphere of agricultural greenhouses with CO2 stimulates the photosynthesis process and accelerates vegetable growth and ripening. But, in the event of high light intensity, the plant absorbs the CO2 very quickly, which reduces its concentration in the greenhouse. The controlled supply process of pure CO2 offered by Air Liquide offsets this effect. As a result, the target concentration of CO2 is maintained and the growth as well as the quality of11.5 the cultures are improved. Very popular in the horticulture sector, the process is mainly used when growing vegetables, cut flowers and orchids. MILLION METRIC TONS Quantity of CO2 emissions avoided by Group customers thanks to Air Liquide solutions2017 data. 40 41
