2018 SHAREHOLDER’S GUIDE
I choose to invest. I choose Air Liquide.
Share ownership starts with convictions. Group profile CONTENTS in pictures
The Air Liquide PORTRAITS OF SHAREHOLDERS FOR THIS FOURTH SEASON, SHAREHOLDERS EXPLAIN group WHY THEY INVEST IN THE AIR LIQUIDE GROUP
The 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 with approximately 65,000 employees and serves more than 3.5 million Participate 07 Address 17 Benefit 25 customers and patients. Oxygen, nitrogen and hydrogen are in a world leader’s new challenges from long-term essential small molecules for life, matter and energy. They industrial adventure performance embody Air Liquide’s scientific territory and have been at the core of the Company’s business since its creation in 1902.
Air Liquide's ambition is to lead its industry, deliver long-term performance and contribute to sustainability. The Company’s customer-centric transformation strategy aims at profitable 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 environmental transition, changes in healthcare and digitization, Christophe - Shareholder who likes Léa - Budding shareholder who wants Armand - Shareholder and everyday and delivers greater value to all its stakeholders. to give things time to broaden her horizons ambassador of Air Liquide
Air Liquide’s revenue amounted to €20.3 billion in 2017 and its solutions that protect life and the environment represented more Contribute 37 Cultivate 45 Pass on 59 than 40% of sales. Air Liquide is listed on the Euronext Paris stock On the cover to sustainability a relationship the shareholder culture exchange (compartment A) and belongs to the CAC 40, EURO based on trust STOXX 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 2018 THANK YOU FOR Progress in 2017 and priorities for 2018 You have chosen Air Liquide Regarding our 2016-2020 Company Program, all The success of a company program depends on the CHOOSING AIR LIQUIDE the initiatives identified have now been launched. commitment of its teams, the trust of its customers I would like to mention a few of them which are likely to and the loyalty of its shareholders. And all this with Benoît 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 helping Dear 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 projects opment 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 Home profit 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 Meeting Your 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 ACTIVITIES
LARGE INDUSTRIES Our activities Chemicals PRODUCE AND DELIVER Shared resources and expertise to serve diverse customers IN LARGE QUANTITIES • Strategy of industrial basins Refining €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 manufacturing (oxygen, nitrogen, argon) AT CUSTOMERS' AND SPECIALITY GASES, • Hydrogen and carbon APPLICATION TECHNOLOGIES monoxide production units Food AND SERVICES €9,261M(b) FOR INDUSTRY pharmaceuticals ENGINEERING & • Tailor-made solutions AND HEALTH: 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 VALORI ATION • Technological independence PROPRIETARY • Gives the Group • TECHNOLOGIES a competitive edge INTEGRATION AND • Creates growth with COMMERCIALI ATION HEALTHCARE third-party customers Hospitals TRANSPORT VIA PIPELINES SUPPORTING PATIENTS, ALL ALONG In gaseous form • SERVICES THE CONTINUUM OF CARE, AND DIGITAL Home FROM HOSPITAL TO HOME SOLUTIONS (b) healthcare • Growing needs in healthcare €3,401M • Solutions adapted to the increase (a) €335M in chronic diseases TRANSPORT VIA TANKER TRAILERS Hygiene/ 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 All gases including special gases, GLOBAL MARKETS 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 2 % TRANSPORT OF CYLINDERS • High level of technological Maritime GROUP expertise BY TRAILERS 17% SALES €20.3bn • High potential markets Usually in gaseous form Scientific exploration 45%
(a) Sales to third parties. (b) Revenue. 10 11 2017 data. Latest PARTICIPATE news Geographic presence and 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 own growth dynamics. This geographic and industrial • Long-term contracts with 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 su ering 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 drivers. In the United States, bright prospects infrastructure a growing need for €8,150M (a) €4,081M (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. in South Africa for Sasol, acquisitions like in Canada protection solutions– from a strong industrial Air Liquide is also starting 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 PARTICIPATE
A customer-centric transformation
Since the acquisition of Airgas, Air Liquide serves more than 3.5 million customers and patients around the world. Air Liquide’s strategy aims to constantly improve customer and patient satisfaction as well as provide brand new and 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 cylinder Audrey Eudeline, With the “Voice of Customer” in a very positive way. Asking for their to develop my skills becomes empty, we collaborated Director of “Customer Experience” program? opinion to identify areas for improvement, in technical matters. with Air Liquide in order to set at 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 customized Improving 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, Korian We want to be the leader in customer is important, but not new. However, Ludovic Dehri satisfaction 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 Physique the 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 initial order, delivery, invoicing, after-sales results. Customer testimonials enabled service, 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 the First, increase attention to customers at This program, which has started being customer service center located in the all levels of the Company, not only within rolled out within the Group, enables Netherlands. An inspiring model for the the sales teams or customer relations employees to access every customer’s other subsidiaries that are currently teams: 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 diseases Group 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 the Potential growth difference in their markets. in demand for Similarly, in Healthcare, Air Liquide is developing new services to meet healthcare hydrogen by 2050(a) professionals’ expectations and improve patient quality of life, particularly by improving adherence to treatment. The Group can rely on its innovation capabilities and especially on its open inno- (a) Source: study, “Hydrogen, scaling up”, 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 capable of 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 more
Challenges as a source of growth
Underlying the major challenges faced by our society, Air Liquide has identified major trends to which the Group can contribute by providing solutions. The challenges our society face are the same ones our clients and patients face. As a result, these changes can create new sources of growth, particularly for pioneer companies.
ENERGY AND CHANGES DIGITIZATION ENERGY AND ENVIRONMENTAL TRANSITION ENVIRONMENTAL TRANSITION IN HEALTHCARE The development of connected devices Global warming as well as natural and Healthcare and well-being are growing and infrastructures that allow to store and For clean transportation energy resource constraints are requir- global challenges with issues ranging broadcast a massive amount of data ing us to find new ways of producing, living from an ageing population to an in- generates new needs and usages: new and travelling. For its industrial customers, crease in chronic diseases, as well as a ways of living, working, travelling, com- Committed to clean mobility, vided approximately 100 hydrogen sta- is fully decarbonized by substituting a Air 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 a tions 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 noise intends to overcome challenges related to care professionals and patients, in the tronics and Healthcare, etc.). Air Liquide through this combination opens up clean 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 and Group 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 gases brings 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 renewable and 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- with oxygen from the air to produce elec- portation (liquid nitrogen). Compressed Nearly 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- 100 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 improve technologies to better monitor patients customer satisfaction
Air Liquide’s e-health solution offers monitoring center in constant contact The Group’s customers are changing AN OPEN ECOSYSTEM home 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 open chronic 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.) to Air Liquide nurses can monitor patients a nurse will consult with the patient via accelerate the Group’s innovation. For 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 of to 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- 47% 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 greater pulse 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 out(a) for chronic heart according 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 the 1bn Each piece of equipment is connected Spain. Air Liquide’s connected monitoring performances of a plant, and notably per day to a digital tablet enabling the patient to solution has demonstrated a significant in- (a) Herold R, et al. Telemedical Care and its energy consumption. This allows Monitoring for Patients with Chronic Heart access 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 points that Air Liquide collects dical data is transmitted and analyzed with chronic heart failure and a reduced Health Services Research, 2017 also to reduce its environmental impact https://www.ncbi.nlm.nih.gov/ at its 400 production sites (a) pubmed/28138988. remotely by nurses at the Air Liquide number of re-hospitalizations . (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 variety as at 12/31/2017 of customers, and innovation– Air Liquide delivers strong and + 8.60% Average annual consistent performance year after year. dividend growth over 30 years
+ 10% Financial performance regularity, which helps add to the Group’s stock market Loyalty bonus for value, enables Air Liquide to develop shareholder loyalty. Every year, the Group registered shareholders pays shareholders a dividend. The dividend typically accounts for approximately 50% of net profit, and demonstrates the Group’s desire to include shareholders 29 in its success. On top of this pay-out ratio, the Group regularly grants free shares Number of free share to shareholders and a loyalty bonus system to those that have held their shares in attributions since registered form for more than two full calendar years. As a result, a portfolio that Air 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 shows how 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 recommend investing in Air Liquide to my family and friends.
Armand, 65 - Shareholder and everyday ambassador of Air Liquide
27 €739.31 +10.52% per year over €224.52 20 years +8.42% per year over 10 years €158.16 +9.60% per year over BENEFIT Performance BENEFIT 5 years of your shares
GROUP REVENUE 20,349 In millions of euros A REWARDING COMMITMENT 11,801 FOR €100 INVESTED IN 1997 FOR €100 INVESTED IN 2007 FOR €100 INVESTED IN 2012
5,851 +6% AirValue Liquide of portfolio has at December always 31, been 2017 and driven average by annual the growth, will to before involve taxes. its shareholders in its success. The Company’s share price has 3,577 AVERAGE beenNote: the growing Preferential steadily Subscription and Rights has relating outperformed to the capital increase the CAC undertaken 40 overin September a 10-year 2016 are period recognized and as havingmore. be Moreover,en sold, then reinvested the dividend, in shares. the Long-lasting ANNUAL GROWTH attributions of free shares and the payment of loyalty bonuses also contribute to the share’s return over the long term. OVER 30 YEARS(a) performance Long-term stock market performance 1987 1997 2007 2017
Growth as at 12/31/2017 ADJUSTED NET EARNINGS(b) PER SHARE 5.16 VALUE OVER VALUE InFINANCIAL euros PERFORMANCE 2.90 €140 €140 €739.31 OVER 5 YEARS +10.52% Air Liquide +37.30% In 2017, Group sales have surpassed1.17 20 billion euros. The improvement in the Group’s operating performance+7.5% per year over 10 YEARS€224.52 CAC 40 +45.91% €120 €120 AVERAGE 20 years +8.42% 0.59could be seen in the increase in the operating margin and a higher net profit (Group share) reaching 2.2 billion euros. Air Liquide +66.10% Share at €76.51 ANNUAL per year over €158.16 Synergies related to Airgas, ahead of our forecast, have contributed to this performance. Lastly, the balance OVER 10 years GROWTH CAC 40 - 5.37% +9.60% OVER 30 YEARS(a) €100 Share at €63.25 per year over €100 sheet is strong: the high level of cash flow making a significant contribution to lowering debt. 20 YEARS 5 years Air Liquide +296.69%
1987 1997 2007 2017 €80 CAC 40 +77.15% €80 GROUP REVENUE 20,349 Share at €26.48 In millions of euros (b) (c) ADJUSTED DIVIDEND PER SHARE 2.65 €60 €60 In euros 11,801 FOR €100 INVESTED IN 1997 FOR €100 INVESTED IN 2007 FOR €100 INVESTED IN 2012 5,851 1.39 +6% Value€40 of portfolio at December 31, 2017 and average annual growth, before taxes. €40 3,577 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. +8.6%ANNUAL 0.43 AVERAGE Share at € 105.05 0.22 GROWTH 2017 performance: ANNUALOVER 30 YEARS(a) €20 €20 GROWTH Air Liquide + 9.38% OVER 30 YEARS(a) CAC 40 + 9.26%
€0 €0 1987 1997 2007 2017 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1987 1997 2007 2017 Growth as at 12/31/2017 (b) ADJUSTED NET EARNINGS PER SHARE 5.16 Share price adjusted to take into account the stock split in 2007, the free share attributions, and the capital increase (a) Calculated according to prevailing accounting rules over 30 years. VALUE OVER Air LiquideVALUE In euros in 2016 linked to the acquisition of Airgas. Share price as at 12/31 of the year concerned. (b) Adjusted for the 2-for-1 share split in 2007, for attributions of free shares and for a factor of 0.974 reflecting CAC 40-indexed the value of the rights of the capital increase completed in October 2016. 2.90 Note:€140 past performances of Air Liquide’s share are not a guarantee of future results. 5 YEARS €140 (c) Proposed for the 2017 fiscal year at the Annual General Meeting on May 16, 2018. OVER Air Liquide +37.30% 1.17 +7.5% 10 YEARS CAC 40 +45.91% A steadily€120 expanding portfolio €120 0.59 AVERAGE Share at €76.51 ANNUAL A shareholderOVER who invested €100 in Air Liquide shares in registeredAir Liquide form +66.10% in 1997, reinvested his dividends GROWTH CAC 40 - 5.37% (a) in shares and benefited from the free share attributions, both eligible for the loyalty bonus, would own a portfolio OVER 30 YEARS €100 20 YEARS Share at €63.25 €100 amounting to €739.31 at December 31, 2017. Air Liquide +296.69%
1987 1997 2007 2017 €80 CAC 40 +77.15% €80 Share at €26.48
(b) (c) ADJUSTED DIVIDEND PER SHARE 2.65 €60 €739.31 €60 In euros +10.52% €224.52 1.39 per year over €40 20 years +8.42% €40 per year over +8.6% 10 years €158.16 0.43 AVERAGE Share at €+9.60% 105.05 per year over 0.22 ANNUAL €20 2017 performance:5 years €20 GROWTH Air Liquide + 9.38% OVER 30 YEARS(a) CAC 40 + 9.26%
€0 €0 GROUP REVENUE 20,349 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 In1987 millions of euros 1997 2007 2017 11,801 FOR €100 INVESTED IN 1997 FOR €100 INVESTED IN 2007 FOR €100 INVESTED IN 2012 (a) Calculated according to prevailing accounting rules over 30 years. Share price adjusted to take into account the stock split in 2007, the free share attributions, and the capital increase Air Liquide in 2016 linked to the acquisition of Airgas. Share price as at 12/31 of the year concerned. (b) Adjusted for the 2-for-1 share split in 2007, for attributions of free shares and for a factor of 0.974 reflecting CAC 40-indexed the value of the rights of the capital increase5 completed,851 in October 2016. +6% ValueNote: of past portfolio performances at December of Air 31, Liquide’s 2017 and share average are notannual a guarantee growth, before of future taxes. results. 3,577(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) 29
1987 1997 2007 2017
Growth as at 12/31/2017 ADJUSTED NET EARNINGS(b) PER SHARE 5.16 In euros VALUE OVER VALUE 2.90 €140 €140 OVER 5 YEARS Air Liquide +37.30% 1.17 +7.5% 10 YEARS CAC 40 +45.91% €120 €120 0.59 AVERAGE Share at €76.51 ANNUAL OVER Air Liquide +66.10% GROWTH CAC 40 - 5.37% OVER 30 YEARS(a) €100 20 YEARS Share at €63.25 €100 Air Liquide +296.69%
1987 1997 2007 2017 €80 CAC 40 +77.15% €80 Share at €26.48
(b) (c) ADJUSTED DIVIDEND PER SHARE 2.65 €60 €60 In euros 1.39 +8.6% €40 €40 0.43 AVERAGE Share at € 105.05 0.22 ANNUAL €20 2017 performance: €20 GROWTH Air Liquide + 9.38% OVER 30 YEARS(a) CAC 40 + 9.26%
€0 €0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1987 1997 2007 2017
(a) Calculated according to prevailing accounting rules over 30 years. Share price adjusted to take into account the stock split in 2007, the free share attributions, and the capital increase Air Liquide in 2016 linked to the acquisition of Airgas. Share price as at 12/31 of the year concerned. (b) Adjusted for the 2-for-1 share split in 2007, for attributions of free shares and for a factor of 0.974 reflecting CAC 40-indexed the value of the rights of the capital increase completed in October 2016. Note: past performances of Air Liquide’s share are not a guarantee of future results. (c) Proposed for the 2017 fiscal year at the Annual General Meeting on May 16, 2018. FACTSHEET FACTSHEET 1 2
Stock orders Free shares What 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 shares with 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 (a) December 31, 2017 paying dividends, Air Liquide distributes a portion of its retained earnings Free shares have the same character- to shareholders in the form of free shares. These are free shares attributed Provides information Finance Continuous trading on EURONEXT istics as the shares they are derived Paris (COMPARTMENT A) in proportion to the number of shares you already hold. from: Pays a dividend Vote at the Annual General Meeting Value Code: (a) Past undistributed net profits. • loyalty bonus ISIN FR0000120073 • seniority Par value: €5.50 • voting rights INVESTORS • dividend rights Number of shares: 428,397,550 shares Closing price: €105.05 Market capitalization: Benefit from an additional €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 (b) index: 1.88% you will receive . INSTITUTIONAL INDIVIDUAL 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 last Choosing 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 BROKERAGE intermediary or directly with Air Liquide if you are a direct registered shareholder. RATE The most frequently used stock orders are as follows: Direct registered shareholders, when 1 “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 the minimum 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 of only when the market price is lable when it reaches the of orders. It is fully executed. 0.18% before tax for purchases paid in lower than or equal to this limit market, for both buy and sell full by SEPA automatic debit(b) or by bank GOOD TO KNOW and 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. The equal to this limit. The order of negotiable shares on the (a) Subject to having signed an account amounts received are taxable from the first euro. They are included on your Tax Reporting agreement. Only applicable to accounts may 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 domiciled in the SEPA zone. Do not forget to include them on your tax return. on the market is not available (c) For purchases below €3,000. at the set limit price.
30 31 FACTSHEET FACTSHEET Taxation web 3 4 conference
Capital gains Dividends How 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. Direct registered shareholders: if you have changed your bank details, please send (Unit sale price (Unit purchase price 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 Purchase transaction You don’t have loyalty bonus gives you the right to a fees and taxes fees and taxes (a) to do anything 10% increase in the dividend . (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 then credit your account with the net dividend. This information is included This information is included PLUS in your sale transaction in your purchase transaction statement. statement. CAPITAL GAINS TAXATION IN FRANCE (a) Unit purchase price adjusted where FOCUS ON required for the attribution of free shares 2018 dividend during the share holding period. If you are a French resident: you can DIVIDEND PAID IN 2018 estimate the net acquisition price of calendar your shares and your capital gains May 25 May 28 May 30 (b) and taxes owed using the tax simul- €2.65 per share representing 53% Last execution day for buy Ex-dividend date. Dividend payment ators available at airliquide.com/ of net profit (Group share) 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- Making a gift is still fully exempt from rights, taxes and social contributions up to maximum 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 6
Your 2018 tax return Your 2019 tax return for income in 2017 for income in 2018 What 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 current on 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 sales (a) and any fractional rights DATES DATES Shares • Social contributions: 17.2% • Social contributions: 17.2% acquired • Income tax based on a progressive scale, after any deductions for seniority from THE PAYMENT OF TAX • Income 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 2018 IN TWO STAGES: Reminder: The tax authorities consider compensation for fractional rights as a capital • 30% flat tax on capital gains on sales (without taking into account any IS CARRIED OUT gain on sale without deduction. This is included on your tax reporting form (IFU). 1. In 2017 when dividends are paid deductions for seniority). IN TWO STAGES: • If you have sent a request to your 1. In 2018 when dividends (a) Fractional rights correspond to compensation received for the portion of the share that cannot be account manager for exemption Shares distributed 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 paid from the 21% advance withholding acquired of the transaction multiple. • 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 • If you did not fulfill the require- vance withholding on divi- ments to benefit from this exemp- • 30% flat tax on capital gains on sales (without taking into account any dends before November 30, tion, social contributions of 15.5% deductions for seniority). 2017, only the social contribu- Dividend taxation have been withheld along with an tions of 17.2% will be withheld; • If you do not fulfill the requi- • Social contributions: 15.5% advance withholding of 21%. rements to benefit from this (already withheld in 2017 when dividends were paid) exemption, social contributions • Income tax based on a progressive scale on the amount of gross dividends after 2. The balance in 2018 when you of 17.2% will be withheld along the 40% deduction, minus potential handling fees. pay your 2017 income tax. Taxation of dividends 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: • flat tax on capital gains 17.2% 30% of 30%. • Income tax based on a progressive OR on the gross amount of dividends Two scenarios that scale on the amount of gross dividends (without taking into account 2. The balance will be applied after the 40% deduction. the 40% deduction). provide exemption in 2019 when you pay your 2018 income tax, accord- from capital gains tax ing to the taxation method chosen. Having a share savings plan, and keeping your shares for a period of five years Choice of taxation method from the account opening date. The capital gains realized after this period are only subject 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 and account 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 advises Making 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 both maximum 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 the Plan 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 the Group’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 and Percentage to prevent global warming. Air is a common, vital and universal good. Its quality of sales related to 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 Group Close 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 for innovation expenses the Group’s sustainable development strategy. It is by collaborating and working allocated to reducing CO emissions(a) together with them that the Group can contribute to a more sustainable world. This 2 is why local initiatives are encouraged as part of Air Liquide's Sustainable Devel- (a) By reducing the carbon content of Air Liquide products or those of its customers. opment Program. The Air Liquide Foundation also contributes to these through 2017 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 public health. I have the feeling my savings are in line with my convictions.
Manon, 26 - Values-oriented shareholder
39 CONTRIBUERCONTRIBUTE CONTRIBUERCONTRIBUTE Find out more
Solutions to lower emissions and re-use CO2
Climate change is a major challenge. Many of the Group’s initiatives allow to reduce CO emissions. 2 1. 2.
LOWER CAPTURE SUBSTITUTE
OXY-COMBUSTION CRYOCAP™, BIOGAS, TO IMPROVE EFFICIENCY COLD CAPTURE SYSTEM A RENEWABLE ENERGY Burning a fuel using oxygen-enriched Cryocap™ is a process developed by Produced during the methanization air–oxy-combustion–is an effective Air Liquide at its site in Port-Jérôme of biomass (household, industrial and solution for reducing CO2 emissions of (Seine-Maritime). It captures CO2 emis- agricultural waste, etc.), biogas can be traditional 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 gas bustion can also result in obtaining more then separate the gases (CO2 on one network, used as a fuel for vehicles or concentrated CO2 emissions, which side, H2 on the other). In addition to the also as a source of energy for producing can then be captured and then stored environmental benefit–60 to 90% of CO2 clean hydrogen, significantly reduces or re-used. Air Liquide participates emissions are captured–the process the ecological impact. 3. in numerous research programs on is also economically interesting as the this type of combustion as well as on captured CO is purified then packaged 2 1. Oxy-combustion / 2. CryocapTM / 3. Biogas capture technologies for the gas issued for sale. The 100,000 metric tons from 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 of 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 11.5 customers thanks to Air Liquide solutions 2017 data. 40 41 CONTRIBUTE CONTRIBUTE
Strengthening dialog with all stakeholders
As a responsible industrial company, Air Liquide pursues a sustainable and balanced development model that values dialog with its various stakeholders.
Bertrand Piccard, President of the “Solar Impulse” Foundation and Founder of the “Global Alliance for Efficient Solutions”, and Benoît Potier, Air Liquide Chairman and Chief Executive Officer.
IMPROVING WITH EMPLOYEES SHARING SKILLS water and materials. Their contribution them to automate processes as much as To build momentum for the green revolu- will be to assess the solutions identified possible. Three years later, Air Liquide Safety is an integral part of our operational excellence. Diversity, being a source of dynamism, creativity and perfor- tion in all sectors, the pilot and designer by the Alliance, using criterias that will was satisfied with the outcome. It was It is a Group fundamental. Air Liquide is committed to the mance, is a priority of Air Liquide’s Human Resources policy. of the Solar Impulse plane, Bertrand help determine if they are sustainable, only natural that the Group’s Procure- efficient and ongoing reduction of its employees, customers, It is a fundamental element of our organization and drives the Piccard, has launched the "Global economically viable and easily replicable. ment teams recommended the company subcontractors and suppliers’ exposure to professional and Group’s long-term performance. Equality between men and Alliance for Efficient Solutions”. This call After having supported Solar Impulse to other entities within the Group and to industrial risks. Feedback is also an essential practice in the women is an essential point in the expression of this diversity. for projects aims to select solutions that since 2013, the first solar airplane able to other major groups. Ultimately this helped Group’s safety approach. Lost-time accidents and potentially are both economically profitable and fly day and night without fuel, the Group this supplier strengthen its business serious safety incidents are analyzed so that lessons can be respectful of the environment. These has once again teamed up with Bertrand and guaranteed the sustainability for learned and an action plan set up. projects will be unveiled in 2018 du- Piccard and his Solar Impulse Founda- Air Liquide of this solution. This support ring the COP 24 in Katowice, Poland. tion, sharing this pioneering spirit and for small to medium-sized companies is Since its integration into the Group, Airgas has made progress Air Liquide, which has already partne- desire to transform the world of energy the mission of “Pacte PME”, a joint French in the area of safety. The lost-time accident frequency rate red with the Solar Impulse adventure, is to make a better environment. association that Air Liquide has been has dropped sharply over a year and is now in line with the teaming up with Bertrand Piccard again. actively engaged in since its creation in Air Liquide level. 26% By uniting the main providers of clean and 2010. This platform aims to strengthen Percentage of women among sustainable solutions, the Alliance will SUPPORTING SMEs cooperation between large groups and Group employees identify and select 1,000 solutions to en- As a major economic player, Air Liquide French SMEs to provide innovation and courage governments, municipalities and strives to support small businesses in agility to the former while developing the companies implement ambitious energy their development. It is within this spirit of business and sustainability of the latter. policies. The Group is a long-standing partnership that Air Liquide has been col- player in developing innovative solutions laborating since 2014 with the Archibald that help improve air quality or prevent Group, a company with 30 employees 1.6 climate change, such as hydrogen energy that specializes in managing, digitizing and biomethane for cleaner transpor- and securing data, to optimize invoice Frequency of accidents 29% (number of accidents with at least one Percentage of women among tation.Therefore, Air Liquide is going to processing by centralizing all its supplier day of lost-time per million hours worked) Managers and Professionals provide the Alliance with the expertise accounting services in France. Today, of a group of nearly 100 of its experts, Archibald digitizes these accounting particularly in the areas of energy, documents but also extracts data from
2017 data. 42 43 CULTIVATE
Cultivate a relationship based on trust
Shareholders’ trust and loyalty are key for Air Liquide’s development. For over a century, the Group has continuously worked to enable shareholders to participate in the Company's success and build a long- lasting relationship with them based on 49% Non-French institutional regular communication and proximity. investors 32% Individual shareholders
19% Air Liquide has always been thankful for individual shareholders who have made French institutional investors its history possible. Indeed, it is the investment and trust of 24 of them that enabled the Company to be created in 1902. Since then, individual shareholding has been 410,000 essential to the Company and its development. This loyalty is illustrated in particu- Individual shareholders, lar by the high number of registered shareholders, a constantly rising figure that including 144,000 shows the success of Air Liquide’s shareholding model. intermediary registered shareholders and Founded on transparency, dialog and proximity, this long-term relationship is 93,000 direct registered incarnated during the Annual General Meeting. This key moment contributes to shareholders making Air Liquide a Group regularly acclaimed for its shareholder relationship.
45
CULTIVATE
Air Liquide and I... I have come to trust the Group since learning about it through my son, who is an employee there. Our relationship is founded on listening, dialog and transparency. I am supported by a team dedicated to shareholders and receive very thorough information on a regular basis. And when the time comes, I vote in Annual General Meetings; my voice counts, and that means a lot to me!
Claudine, 63 - Shareholder who knows how to speak up
47 Directors CULTIVATE profile The Board of Directors and governance
APPOINT
ANNUAL GENERAL MEETING A high point for shareholder BOARD SHAREHOLDERS democracy OF DIRECTORS
REPORTS
APPOINT BRINGS DIRECTORS TOGETHER THE EXPERTISE OF 12 MEMBERS 4-year term of oce 7 men, 5 women 6 nationalities Complementary skills Chairman and CEO, with his strong knowledge of the Group VOTE 1 Director representing employees, ON THE RESOLUTIONS PROPOSED BY THE BOARD conveying their vision 49.9% participation rate at the 2017 Annual General Meeting
STAYS INVOLVED THROUGHOUT THE YEAR Members of the Board of Directors: ASK 4 specialized committees Benoît Potier - Chief Executive Officer, Jean-Paul Agon - Lead Director, Pierre Dufour, Thierry Peugeot, Karen Katen, Siân Herbert-Jones, QUESTIONS 21 meetings in 2017 Sin Leng Low, Annette Winkler, Philippe Dubrulle - Director representing employees, Geneviève Berger, Brian Gilvary, Xavier Huillard. 7 written questions sent prior to the 2017 Annual Site visits General Meeting and close to 100 questions during the meeting
APPLIES LEAD DIRECTOR COMMUNICATE BALANCED GOVERNANCE • Given specific powers, including the power to request a Board meeting REGULARLY WITH THE CHAIRMAN & CEO 8 independent Directors out of 11 elected ones Annual General Meeting, regional meetings after 1 Lead Director • Can be contacted individually by Directors the Annual General Meeting, the Actionaria Fair, Refers to the recommendations • Reports on his/her activity in the Reference Document Shareholders’ Communication Committee of the AFEP/MEDEF code 48 49 FACTSHEET 2017 highlights CULTIVATE 7 and 2018 edition 2018 Invitation
Annual General Meeting The Annual General How do I participate? Air Liquide strives every year to make sure its Annual General Meeting is a special event, a unique venue for interaction and information about the Group. Air Liquide places great Meeting, a high point importance on shareholder participation and voting regardless of the number of shares held. for shareholder democracy Different types of Annual General Meetings FOCUS ON For this unique moment of dialog between Air Liquide An Ordinary Annual General Meeting is held for shareholder approval a change in the articles once a year within six months of the end of of association or a transaction affecting the VOTING ONLINE and its shareholders, the Group makes full use of digital the fiscal year. Its purpose is to inform share- capital (increase, decrease, merger, etc.). The AND ATTENDING technology to broadcast the Annual General Meeting holders of the Group’s activity and results, resolutions can only be adopted by a majority of approve the financial statements, approve the two-thirds of the capital present or represented. You have the option to vote online, to as many shareholders as possible before, during dividend amount, appoint or reappoint members The Group generally convenes a Combined before the Annual General Meeting, of the Board of Directors and the Statutory Annual General Meeting (an Ordinary and and to attend the Annual General and after the meeting. Immersion. Auditors and, lastly, authorize any of the Comp- an Extraordinary Annual General Meeting Meeting in person. To do this, request any’s day-to-day management operations. convened on the same date by a single notice). a voucher for admission directly on Resolutions presented at an Ordinary Annual Whether the quorum and majority conditions the online voting site. All shareholders General Meeting are adopted by a simple maj- of the Ordinary Annual General Meeting or in attendance at the Annual General ority of shareholders present or represented. Extraordinary Annual General Meeting apply Meeting receive an attendance fee. An Extraordinary Annual General Meeting is depends on the resolution. PREPARE EXTEND THE DIALOG convened when the Company wishes to submit For the first time in 2017, a large survey After the Annual General Meeting is Lastly, discussions continue during was conducted before the Annual closed, a press release announces the the following weeks with two “post- General Meeting to 29,000 shareholders results of the vote on resolutions. At the Annual General Meeting” sessions held in Voting conditions who chose the electronic invitation. The same time, in order to better involve France, during which Benoît Potier meets Voting enables you to play a part in decisions Holders of registered shares: access online purpose was to collect their expectations shareholders who were not able to shareholders in different cities. that are important to the Group. There are voting through your personal online account for this meeting and their opinion on the attend, a selection of ten key moments of three ways to cast your vote. which you can find at airliquide.com / Share- topics proposed. Thanks to more than the meeting are published on YouTube. holders section, using your usual login details. PLUS log on to your Before the Annual General Meeting Holders of bearer shares: What if you cannot attend the Annual 5,000 responses, the ambition to build 1 financial institution’s website. You will be given Online General Meeting? Make sure you are the Annual General Meeting program The vote by Internet is a simple and secure the option of voting if your financial institution represented by choosing the proxy of solution for registered and bearer shareholders has signed up for the electronic voting system. together with shareholders was achie- your choice. Plan ahead: no proxies or in France and overseas alike. You can: Once you have voted, you can print out a state- power of attorneys can be accepted ved. In 2018, the Group is repeating this • access online all the documentation relating ment proving that your vote has been registered. on the day of the meeting. process. to your vote (Invitation to the Annual General Meeting, Reference Document, etc.); 2 By mail • vote on the resolutions; By completing and sending in your voting form FOLLOW LIVE OR LATER • appoint the Chairman or a third party as your received along with the invitation to the Annual On the day of the meeting, live coverage proxy; General Meeting. via the Group’s Facebook page offers • apply for an admission card to the Annual General Meeting. At the Annual General Meeting shareholders a preview of the special 3 Vote during the meeting exhibit two hours before the meeting Using your electronic voting device provided begins. on arrival. Then, when the Annual General Mee- ting starts, the event is live tweeted and broadcasted at airliquide.com GOOD TO KNOW in a format accessible to those who are The event is broadcast live on airliquide.com, in both French and English, then made available deaf or hearing impaired. Lastly, you can as a webcast. Following every Annual General Meeting, Benoît Potier travels to two cities in relive the event through a webcast in France to present the Group’s results and outlook. In 2018, he will be meeting shareholders French and English after the event. in Reims (on May 22) and Cannes (on May 31).
50 51 FACTSHEET 8
Shareholding options Why not in registered form? ISIN codes Your Air Liquide shares are divided into four “value codes” (ISIN codes(b)) which you PLUS 237,000 Air Liquide shareholders have already opted for registered shares can use to check your eligibility for a bonus. If you hold direct registered shares, these and are enjoying their many benefits, including the loyalty bonus. codes can be found on your account documents and in your personal online account. REDUCED BROKERAGE (b) ISIN (International Securities Identification Number) is a standard dating back to 2001 that identi- RATE fies securities worldwide. Direct registered shareholders have the option to benefit from a reduced brokerage rate of 0.10% before tax instead of 0.18% before tax by placing their orders online Permanent Value Codes via their personal online account(c), Choose the way you want for purchases paid in full by SEPA to hold your shares FR0000120073 automatic debit(d) or by bank card(e), Shares acquired during the current year and which will entitle you to a loyalty bonus as well as for sales. 1 Bearer shares 2 Intermediary registered shares 3 Direct registered shares if held as registered shares for more than two full calendar years. They will still be able to place stock Your shares are held in a securities account or Your intermediary registered shares are held Your direct registered shares are held in a orders by telephone, mail, or email, at a share savings plan opened at your financial in a securities account or a share savings securities account opened at Air Liquide, FR0000053951 the unchanged broker fee of 0.18% institution. plan opened at your financial institution and recorded in your name in Air Liquide’s Registered shares that already qualify for the loyalty bonus. before tax. recorded in your name in Air Liquide’s register and managed by the latter. Share- register. holder Services is your point of contact. (c) Subject to having signed an account agreement. Only applicable to accounts with full ownership. (d) Only if the account is domiciled in the SEPA zone. DIFFERENT SHAREHOLDING OPTIONS BEARER INTERMEDIARY DIRECT Intermediate Value Codes (e) For purchases below €3,000. To convert to registered shares, see factsheet 9 SHARES REGISTERED REGISTERED FR0013291440 SHARES SHARES Registered shares in 2017 that will qualify for the loyalty bonus in 2020. Varies by financial Varies by financial My handling fees and management fees Free FR0013215472 institution institution Registered shares in 2016 that will qualify for the loyalty bonus in 2019. • I place my stock orders directly with Air Liquide
• I place my stock orders with my financial institution
0.10% before tax or 0.18% Loyalty bonus calendar Varies by financial Varies by financial before tax My broker fees 2018 2021 institution institution (see following page I ask my financial institution to convert I receive a loyalty bonus for my registered DATE “PLUS : reduced my shares to registered form before shares for the first time. DEADLINES brokerage rate”) December 31. In order to be recorded in 2018, the 2022 / 2023... I am eligible for free shares when free shares are attributed last date to place buy or sell orders 2019 / 2020 I will receive the loyalty bonus every year is December 31, 2018 at 2pm. I qualify for the loyalty bonus(a) I hold on to my registered shares for two if I keep my shares in registered form. full calendar years. I am kept up-to-date on the Group’s news, results and developments concerning shares
I am invited to the Annual General Meeting directly by Air Liquide
My point of contact is: • Shareholder Services, which I can contact via the toll-free number or GOOD TO KNOW–WHERE DO I BUY SHARES? meet with directly at the Shareholder Lounge at Air Liquide’s head office If you are a direct registered shareholder: you may buy shares directly from your personal • my usual financial advisor online account or by contacting Shareholder Services. Your shares are registered in a securities My Tax Reporting Form is sent: account and managed by Air Liquide Shareholder Services. • by Air Liquide If you hold bearer or intermediary registered shares: you may buy shares from your financial • by my financial institution institution. Your Air Liquide shares are registered in a securities account or a share savings plan and managed by your financial institution. These shares are bearer shares by default. It is up to you to ask your financial institution to convert them to intermediary registered shares. (a) For shares held for two full calendar years and subject to the conditions defined by Air Liquide’s articles of association.
52 53 FACTSHEET FACTSHEET 9 Your Personal 10 online account
Registering shares Personal online account How do I do it? What is the added value in this?
You wish to benefit from the loyalty bonus? Your personal online account can be accessed from the “Shareholders” It’s easy! Convert your shares to registered form. section of the airliquide.com website and has been designed to help you manage your Air Liquide share portfolio easily and securely.
Converting your Air Liquide shares to intermediary registered shares FIGURES YOU HOLD BEARER SHARES A reliable tool to manage your It is up to you to ask your financial institution to convert your Air Liquide CONVERSION TO shares quickly on a daily basis shares to intermediary registered shares. REGISTERED SHARES FIGURES Registered shareholders Direct registered shareholders 1 Complete the form to convert your 2 Send your form to your financial institu- More than 11 million shares converted You can access your account to: You can also: (a) 2,500 SHAREHOLDERS shares to intermediary registered shares. tion , which will forward your request to (b) to registered shares in 2017. All shares Check your share portfolio and your eligi- Place buy or sell orders 24/7 ; voted or requested their admission This document can be downloaded from Air Liquide. Your intermediary registered (a) converted before December 31, 2018 bility for the loyalty bonus ; Check your account documents (account card online for the 2017 Annual the Air Liquide website or obtained from shares will continue to be managed by will benefit from the loyalty bonus as Access your personal information directly; status, Tax Reporting Form, etc.) in your General Meeting. Shareholder Services. your financial institution and can remain of 2021 if they are held in registered Ask to receive your Invitation to the Annual online library; in your share savings plan. form until the payment of dividends General Meeting by email; View your dividend amount and your or the free share attribution. Vote online on the Annual General Meeting transaction history in real time; 5,500 SHAREHOLDERS resolutions. For French tax payers, validate online your requested to go paperless. Now they Converting your Air Liquide request for exemption from the advance receive emails with the Group’s re- withholding on dividends. sults, publications and notifications shares to direct registered shares of account documents availability(c) (a) This information is sent to you by your financial in their personal account. YOU HOLD BEARER SHARES OR INTERMEDIARY institution if you hold intermediary registered shares (b) Subject to having signed an account agreement REGISTERED SHARES and by Air Liquide if you hold direct registered shares. with Air Liquide. It is up to you to ask your financial institution to convert (c) For direct registered shareholders. your Air Liquide shares to direct registered shares. PLUS
1 Complete the form to convert your shares to direct registered shares. This document WHEN YOU REGISTER Services accessible can be downloaded from the Air Liquide website or obtained from Shareholder Services. YOUR SHARES, in just a click 2 Send your form to your financial institution(a). It will perform the procedure and inform YOUR LOYALTY Air Liquide Shareholder Services, which will send you the account agreement. You must IS REWARDED! Access your personal account from return this to Shareholder Services to finalize the process of opening your account. airliquide.com / Shareholders section. After holding registered shares • Click on “Access your Account” and (a) Conversion fees and processing times vary by financial institution. for two full calendar years, you Contact your usual financial advisor for more information. enter your usual login and password. are eligible to receive +10% on the First-time users click on “I create my online amount of dividends received and Account”. on free shares when free shares are • Enter the login that was sent to you via attributed. Bonus and share savings plan mail and your shareholder ID listed on With intermediary registered shares, you can continue to take advantage of the tax the account documents sent to you by breaks offered by a share savings plan and receive the loyalty bonus(b). Download the Shareholder Services. form at airliquide.com, Shareholders section / Media Library / Forms.
(b) For shares held for two full calendar years and subject to the conditions defined by Air Liquide’s articles of association.
GOOD TO KNOW Benefit from a reduced brokerage rate of 0.10% before tax instead of 0.18% before tax by (d) GOOD TO KNOW placing your orders online via your personal online account , for purchases paid in full by SEPA automatic debit(e) or by bank card(f), as well as for sales. To reduce your bank fees, convert all your shares at once before the end of 2018 to be eligible for the loyalty bonus starting in 2021. Send your request to your financial institution. Verify that (d) Subject to having signed an account agreement. Only applicable to accounts with full ownership. (e) Only if the account is domiciled in the SEPA zone. your shares are in registered form by reviewing the status of your portfolio. (f) For purchases below €3,000.
54 55 CULTIVATE CULTIVATE
I have a question...
Shareholder Services and its 28 advisors are available to answer your questions every day. Here are five frequently asked questions.
What are the I am lost on filling I don’t live in the Paris How can I place How can I follow advantages of being out my tax declaration region... Who can I meet a stock order as Air Liquide news? Close to... a registered form... Can someone who can talk to me about a direct registered shareholder? help me? Air Liquide and its shares? shareholder? 800 First and foremost, you are entitled to a If you are a direct registered share- Benoît Potier travels to meet individual The simplest way is to use your perso- Throughout the year, you can find visits to the loyalty bonus after holding your shares holder, the “My document library” section shareholders in two different regional nal online account. A new feature since Air Liquide online at airliquide.com, Shareholder in registered form for two full calendar in your personal online account contains cities every year. At these meetings, he 2017, you benefit from a reduced broker which provides abundant and detailed Lounge years, which rewards this loyalty to the all the documents you need (Tax Form, presents the Group’s strategy, then par- fee of 0.10% before tax instead of 0.18% information on all subjects regarding (Paris Head Office) Group through a +10% increase in divi- Market Statement, etc.) in addition to tax ticipates in a round table with Air Liquide before tax, with no minimum (see fact- shareholding and the Group, and on dends and free shares during free share simulators available for everyone on the experts on a given theme. In 2018, Reims sheet 10). Otherwise, you can contact social networks–Twitter, Facebook attributions (see factsheet 2). You also Group’s website. Beyond that, Air Liquide and Cannes will be the host cities. Addi- dedicated “stock order” experts available and LinkedIn–where Air Liquide posts 50,000 have a totally secure personal online provides factsheets to all shareholders tionally, shareholder meetings conducted in person in the Shareholder Lounge at informative communications on a calls account at your disposal at any time. and organizes two web conferences per by Patrick Renard, Director of Share- Head Office, on the toll-free number, or regular basis. In addition, Shareholder This enables you to consult your port- year on taxes and inheritance. These holder Services, are held every year in six via email(a). Services keeps you up-to-date with folio and your eligibility for the loyalty educational meetings, including one Q&A to eight cities throughout France. On the regular emails. 92,000 bonus, request to receive Annual session, are organized by Air Liquide digital side, you can watch the Annual emails General Meeting invitations by email and experts, the notary group Monassier, as General Meeting live via webcast, which and mails vote on proposed resolutions. This ser- well as trade journalists. Lastly, in case of is accessible for the deaf and hearing (a) [email protected]. vice offers another advantage to direct difficulties, advisors from Shareholder impaired–and enhanced in 2017 with 2017 data. registered shareholders: for example, Services are at your service. Facebook Live for certain parts of the they can place stock orders 24/7, check event–or follow the Group’s Twitter feed. CALL US WRITE TO US account documents and validate their Directly through the website requests for exemption from the advance + 33 (0)1 57 05 02 26 contact.actionnaires.airliquide.com withholding on dividends online. Lastly, from outside France the dedicated team of advisors from or LOG ON Shareholder Services guarantees person- 0 800 166 179 to your personal account at alized and tailored support. airliquide.com/shareholders
56 57 PASS ON
Pass on the shareholder culture
Today, you are 410,000 individual shareholders to support the development of Air Liquide and share its long-term vision. Investing in Air Liquide means partaking in a shareholder culture and passing it on to friends and family. 2,289 Number of donations in 2017 for direct registered shareholders An ardent defender of individual shareholding in France, Air Liquide also cares about younger generations and how to raise their awareness and teach them about economic and stock market culture. In order to do so, the Group inter- More than 1,200 acts with them directly and by producing educational materials accessible to Number of views everyone. This culture can also be passed down from generation to generation of the “Passing on shares” by passing on shares: an option that more and more individual shareholders web conference in 2017 are considering.
59 PASS ON
Air Liquide and I... It’s a family affair. My grandfather introduced me to the world of Finance and gave me a taste for corporate investment before transferring me his Air Liquide shares. We all have a role to play in the real economy, regardless of age or the amount of savings. In turn, the best way I could pay tribute to him would be to pass this down to my future children...
Florian, 23 - Shareholder from one generation to the next
61 PASS ON OUTILSPASS RELATIONNELS ON
Shareholding meets the expectations of young adults
Patrick Renard, and thus is the foundation of its long- when it targets meaningful business pro- Director of Air Liquide term strategy. To be able to take care of jects that inspire them. Education is key, Shareholder Services individual shareholders, we have kept and companies have their role to play. all facets of the securities side of the What recent developments business and the corresponding expert- What is Air Liquide doing to meet the in France are seen as favorable ise with a 28-member Shareholder expectations of young workers who toward individual shareholding? Services department. save but do not invest in companies? The number of individual shareholders Concretely, this enables our share- The study revealed that they have a has plummeted from 7 million to a little holders to open securities accounts different vision of shareholding: first, more than 3 million in a few years, even directly with Air Liquide. To provide they look for a human and technologic- though this investment meets the long- our shareholders with the best possible al adventure. So we are adapting our term objectives of a lot of investors: real support in issues related to donation initiatives and messages to show them estate purchase, retirement preparation, and inheritance, we have also formed that investment in shares meets their inheritance, etc. However, attitudes a partnership with the Monassier notary expectations in this way. For example, we are changing: a desire to participate in group. In addition we meet with share- value innovative projects in areas such as funding the real economy and promote holders in meetings in France or at hydrogen energy, related to clean trans- entrepreneurship, to take sustainable special events such as the Actionaria portation. At the same time, we also rely development and ethics into account, Fair, and we work with students from an on existing shareholders, who are our to research the meaning behind the educational standpoint. Lastly, we best advocates, and encourage them investments. For the past few months, participate in collective initiatives to to pass on to their family their belief in this mainstream trend has been accomp- promote and defend individual share- share ownership and their attachment anied by a political and tax backdrop holding within organizations such as to the Group. in France that aims to promote secur- ANSA(a), OAA(b), or F2iC(c). ities, which reflects the government’s realization of the necessity to redirect How do young people see French people’s savings toward corpo- the stock market today? rate financing. Overall, younger generations suffer from a lack of information and poor image of Air Liquide is committed to long- the stock market. What is ironic is that term shareholding. What does that they save regularly, but on products (a) Association Nationale des Sociétés par Actions mean in concrete terms? with low yields and no risk, even though (National Association of Listed Companies) (b) Observatoire des Actionnaires d’Avenir Air Liquide is particularly committed to they are ready to take risks, as shown in (Observatory for Shareholders of the Future) long-term shareholding because it is a Air Liquide/Actionaria’s 2017 study. Just (c) Fédération des Investisseurs Individuels et des Clubs d’investissement (Federation of Individual Investors and guarantee of independence, of stability, look at their attraction to crowdfunding Investment Clubs)
62 63 FACTSHEET Passing on shares web 11 conference
Passing on shares and taxation Inheritance: the choice is yours! What solutions are available to pass on my shares? You can decide how your assets, including Air Liquide Shareholder Services for direct FIGURES your share portfolio, will be distributed registered shareholders, or your financial among your heirs. Upon your death, a institution for intermediary registered TAX EXEMPTION The elements of taxation in this factsheet apply to French residents for tax purposes. declaration signed by your notary stating shareholders and bearer shareholders, FOR DONATIONS Passing on your shares in advance allows you to benefit from an advantageous tax your marital status, the names of all benefi- will execute all instructions given by your ciaries and the number of shares attributed notary or the person managing your estate. Every 15 years you are able to make framework, encourages your loved ones to save and educates them about the stock to each beneficiary is sufficient to distribute a tax exempt donation for up to: market. You thereby also share your commitment to the Air Liquide Group. a portfolio. €100,000 for each child and from each parent
€80,724 for a spouse Seek advice or civil partner 4 ways of passing on shares Your notary can advise you on personalized solutions for passing on marketable shares €31,865 for each grandchild as part of a gift or inheritance and will write the deeds. €15,932 for each brother Some examples: and sister
1 2 Simple gifts Shared gifts Inter-vivos distribution donations allow you to pass on your shares while continuing to €7,967 for each nephew receive the dividends, i.e. retain the usufruct. The usufruct can be full or partial. Donation or niece Principle Principle rights are reduced as they are based on the bare ownership value of the donation. On the €5,310 for each great- Anticipated allocation of your shares Anticipated total or partial allocation death of the grantor, the bare owners recover the usufruct and therefore full ownership of grandchild to the beneficiary of your choice of your shares to your children the shares. Dividends from free shares attributed after the donation are also paid to the beneficial owner. Overview Overview • Tax advantages • Donation only to children The ban on giving up your shares prevents the sale of the shares or their donation for a set period. • Notarial deed and declaration of the gift carried out by • Tax advantages a notary • Lower inheritance taxes The right of return allows the grantor to take possession of the shares again if the • May be added to the grantor’s estate • Notarial deed and declaration of the gift carried out by the notary grantee dies first. • Purchase price valued at the average share price on the day • Not added to the grantor’s estate of the gift or at the closing price of the previous trading day. Do not forget to send a copy of the notarial deed to your • Purchase price valued at the average share price on the day
Rencontrez-nous Écrivez-nous Contactez-nous Espace actionnaires Service actionnaires 0 800 166 179 Ouvert du lundi au vendredi 75, quai d’Orsay 75321 Paris Cedex 07 of the gift or at the closing price of the previous trading day de 9 heures à 18 heures ou + 33 (0)1 57 05 02 26 75, quai d’Orsay ou directement sur le site account manager depuis l’international 75007 Paris http://contact.actionnaires.airliquide.com • Loyalty bonus maintained if the gift is made to a spouse • Loyalty bonus maintained PLUS or relative entitled to inherit A LASTING GIFT Parents, grandparents, give shares to your children and grandchildren! Shareholder Services sends a gift 3 4 envelope directly to your loved ones Hand-to-hand gifts Customary gifts as part of your gift of shares when you make a donation. Principle Principle Facilitated passing on of your shares A present given on a special occasion to your loved ones (wedding, birthday, Christmas, etc.)
Overview Overview • Tax advantages • Must represent a relatively small share of the grantor’s assets • Written agreement from both parties. In order to value the shares • Does not need to be declared to the fiscal authorities GOOD TO KNOW passed on, the grantee’s local tax authority must be notified • Not added to the grantor’s estate of the gift within one month, using French tax form 2735 • Purchase price of zero: when these shares are sold, the LOYALTY BONUS • Hand-to-hand gifts have to be added to the grantor’s estate capital gain realized will be equal to the total net sale amount and included in the allocation of the grantor’s assets In the case of passing on shares or gifts to a spouse or a relative entitled to inherit, any loyalty • Loyalty bonus maintained if the gift is made to a spouse or bonus attached to Air Liquide shares is retained. • Purchase price valued at the average share price on the day relative entitled to inherit of the tax declaration or, if this is higher, at the average price on the day of the gift. Do not forget to send a copy of declaration DIRECT REGISTERED SHAREHOLDERS 2735 to your account manager You can download “Hand-to-hand gifts” and “Customary gifts” forms on the airliquide.com website, • Loyalty bonus maintained if the gift is made to a spouse in Shareholders / Media Library / Forms. For gifts completed before a notary, do not forget to send or relative entitled to inherit the notarized documents to Air Liquide’s Shareholder Services.
64 65 PASS ON Factsheet index
30 STOCK ORDERS 51 ANNUAL GENERAL MEETING The individual shareholder, 31 FREE SHARES 52 SHAREHOLDING OPTIONS 32 CAPITAL GAINS 54 REGISTERING SHARES lever of economic culture 33 DIVIDENDS 55 PERSONAL ONLINE ACCOUNT 34 2018 TAX 64 PASSING ON SHARES AND TAXATION 35 2019 TAX
2018 events Your events
April 3 June 5 October 16 “What is new with shareholders Shareholders’ meeting Shareholders’ meeting Caroline de La Marnierre Why is it urgent to restore For example: taxations?” web conference in Avignon in Montpellier Chief Executive Officer and Founder momentum in individual – highlighting the role of individual of the Institute of Responsible shareholding and how are you shareholders in economic performance; Capitalism, Coordinator of the April 25 July 30 October 24 Observatory for Shareholders going to do it? Why is “attracting” – organizing an individual shareholder First quarter revenue First half results Third quarter revenue of the Future (OAA) younger generations a priority? conference sponsored by the French The members of the OAA believe that it Ministry for the Economy; is urgent to act fast because restoring – creating a share savings plan for young May 16 September 27 November 22-23 momentum in individual shareholding is people to raise their awareness of how Combined Annual Shareholders’ meeting Actionaria Fair in Paris What is the purpose of the OAA, a necessity for companies, households the real economy works. General Meeting in Strasbourg of which Air Liquide has been a and the French economy. It is also member since its creation? essential to start young people off on this How do you see individual May 22 October 4 November 27 What was the motivation path alongside current shareholders to shareholding in France in ten years? Benoît Potier meets with Passing on shares Shareholders’ meeting for its creation? ensure, quite simply, the sustainability We are firmly optimistic for the coming shareholders in Reims web conference in La Rochelle The OAA brings together five large of individual shareholding in France. years, because different factors suggest French companies (Air Liquide, AXA, I would add that the educational as- a new rise in individual shareholding. May 31 ENGIE, L’Oréal, SUEZ) and three me- pect is absolutely key, because holding The first reason is economic: the yield Benoît Potier meets with dium-sized companies (Thermador shares stimulates a taste for getting to on securities should remain attractive shareholders in Cannes Groupe, Interparfums, Wavestone) know “their” company, its competitors, because interest rates are expected to that are particularly engaged in pro- its markets, the stock market, the eco- remain low as well as is inflation, which moting individual shareholding. This nomic environment and economic itself is driven down continuously by think-and-do tank also includes sixteen policy in general. Individual share- competition and innovation. financial market bodies that all work holding is probably the most effective The second reason is societal: the devel- together to develop responsible individual lever to strengthen our country’s eco- opment of the crowdfunding economy, Contact details shareholding. The creation of this Obser- nomic culture. as well as ethical shareholding, entices vatory in 2014 resulted from a growing citizens to want to create direct ties with CALL US COME AND MEET US WRITE TO US STAY CONNECTED concern–the 50% drop in the number What are the initiatives the real economy. + 33 (0)1 57 05 02 26 Shareholder Lounge Directly through the website Follow the Group’s from outside France of individual shareholders from 2008 to proposed by the OAA? Open Monday-Friday www.airliquide.com news at 2015 due to several factors (fiscal ins- Confronted with the urgent need to or from 9 a.m. to 6 p.m. or by post at: www.airliquide.com tability, successive economic crises, restore momentum in individual share- 0 800 166 179 75, quai d’Orsay Shareholder Services Follow us weakening economic culture among holding, the OAA has offered several 75007 Paris - France 75, quai d’Orsay @airliquidegroup the French, etc.). measures that can be put in place. 75321 Paris Cedex 07 - France AirLiquideCorp AirLiquide 66 LIVRET2018EN LIVRET2018EN