Potential Bond Issue through our Sustainable Financing Framework
Global Investor Call • May 17th 2021
1 Disclaimer
The information contained herein has been prepared by L’Air Liquide SA (“Air Liquide”) solely for use at presentations held in connection with the proposed offering of notes of Air Liquide Finance (the “Transaction”). The information herein is only a summary and does not purport to be complete. This presentation is strictly confidential and may not be reproduced, redistributed or disclosed, directly or indirectly, in whole or in part, to any other person without Air Liquide's consent. In accessing this presentation, you agree to be bound by the following terms and conditions. This presentation has been prepared solely for informational purposes and should not be construed as a solicitation or an offer to buy or sell any notes and should not be relied upon as advice to potential investors. No representation or warranty, either express or implied, is made as to the accuracy, reliability or completeness of the information presented herein. 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This presentation does not constitute, in whole or in part, an offer, and you must read (i) the debt issuance programme prospectus dated 10 May 2021 of Air Liquide and Air Liquide Finance relating to the €12,000,000,000 Euro Medium Term Note Programme unconditionally and irrevocably guaranteed by Air Liquide in respect of notes issued by Air Liquide Finance (the “ Debt Prospectus”), and (ii) the sustainable financing framework agreement dated 17 May 2021 (the “Framework Agreement”’) before making an investment decision in the notes. The Debt Prospectus and Framework Agreement are available on the website of Air Liquide. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Certain figures included in this presentation have been rounded for ease of presentation.
Global Investor Call • May 17th 2021 2 Speakers
v Fabienne Ashutosh MISRA Jacques MOLGO LECORVAISIER Group Vice President Sustainable Deputy Chief Financial Officer Development Chief Financial Officer Executive Vice President, in charge of Finance, Operations Control and General Secretariat
Global Investor Call • May 17th 2021 3 Agenda 1 Air Liquide at a glance
2 Sustainable business strategy
3 Sustainable Financing Framework
4 Group Credit Profile
5 Potential Bond Issue summary
6 Case Studies
7 Appendices
Global Investor Call • May 17th 2021 4 Air Liquide at a glance
Global Investor Call • May 17th 2021 5 A WORLD LEADER 78 64,400 >3.8 m ~€20,5 bn IN GASES, Countries Employees Customers of Sales in 2020 TECHNOLOGIES and Patients AND SERVICES FOR INDUSTRY & HEALTH >€2.4 €5,2 ~€60 bn bn bn
Net Profit Cash Flow Market in 2020 in 2020* Capitalization**
* cash flow from operating activities before changes of working capital ** on December 31, 2020 Global Investor Call • May 17th 2021 6 A STRONG BUSINESS MODEL
Mutualize 1 assets
Liquefaction 2 piggyback
Distributors, 3 bolt-on acquisitions
(a)SMR: Hydrogen and carbon monoxide production unit (Steam Methane Reformer)
(b) ASU: Air gases production unit (Air Separation Unit)
(c) On-site: Small local production unit
(d) ESG: Electronic Specialty Gases
Global Investor Call • May 17th 2021 7 FY 2020 GAS & SERVICES REVENUE BREAKDOWN BY REGION
Europe Americas Europe 35% 40% €6.8bn Americas Asia-Pacific €7.8bn €4.5bn €19,656m Gas & Services v Revenue 5% 2% 11% 29% 31% 33% 16% 68% 39% Asia-Pacific Africa Middle-East 28% 4% 34% 3% 22% Industrial Merchant Large Industries Healthcare Electronics
Global Investor Call • May 17th 2021 8 OUTSTANDING 2020 PERFORMANCE FACING COVID-19 SITUATION
- % (1) 5 Sales resisting -6.5% -1.3% Global IP plunged FY 2020
Comparable
(2) +80 Improved OIR margin bps v
High net profit growth +8.6%
Investment decisions >€3bn
(1) Industrial Production, Source: Coe-Rexecode (2) Change in Operating Income Recurring on Sales, excluding energy impact Global Investor Call • May 17th 2021 9 PURSUED RECOVERY IN Q1
Q1 21/20 Q1 21/20 Sales in €m Q1 20 Q1 21 As published Comparable
Gas & Services 5,191 5,103 -1.7% +2.8%
Engineering & Construction 52 76 +44.5% +48.5%
Global Markets & Technologies 127 155 +22.0% +25.7%
Group Total 5,370 5,334 -0.7% +3.8%
Impacts on Q1 Group Sales: -5.1% FX v -3.2% Energy -2.7% Significant Scope
Global Investor Call • May 17th 2021 10 MOST OF THE ACTIVITIES ARE BACK TO GROWTH
Comparable sales value (€m) Q1 19 comparable sales value (€m)
v
Group comparable sales growth (%) Group comparable sales value (€m)
Global Investor Call • May 17th 2021 11 ACCELERATION OF PRE-COVID TRENDS BENEFITTING OUR ACTIVITIES
ENERGY TRANSITION LI ▪ Low carbon hydrogen offers ACCELERATION GMT ▪ Decarbonization projects
HEALTHCARE ▪ Digital care development NEW DYNAMISM HC ▪ Acceleration of value-based offers
INCREASING STAKE EL IM ▪ Digital as a value lever for all activities ▪ Deep cryogenics, fusion, electronic fields, OF TECHNOLOGIES GMT LI low carbon
Global Investor Call • May 17th 2021 12 POSITIONING FOR FUTURE GROWTH
Investment Opportunities(1)
Shift towards Shift towards Energy Transition and Electronics Europe and Asia
14% 17% 22% 13% v 30% 39% 14% 39% €2.9bn 25% €3.1bn €2.9bn €3.1bn 61% 21% 44% 27% 34%
End of 2019 End of 2020 End of 2019 End of 2020
(1) see definition in appendix Global Investor Call • May 17th 2021 13 Sustainable business strategy
Global Investor Call • May 17th 2021 14 TIME TO ACT FOR A SUSTAINABLE FUTURE
Performing in the present and preparing A GROWTH HISTORY the future thanks to a deeply resilient PERFORMANCE & 1 and diversified business model SUSTAINABILITY
OUR AMBITION IS TO INVENTING 2 MAKE A MEANINGFUL 3 AND SHAPING DIFFERENCE THE FUTURE All stakeholders share is in Air Liquide DNA responsibility over the future Go Beyond At Air Liquide, we are willing to contribute to society wherever we can make a difference
Global Investor Call • May 17th 2021 15 SUSTAINABLE DEVELOPMENT COMMITMENTS STRUCTURED AROUND 3 MAIN PRIORITIES
1 Abatement of CO2 emissions
2 Care for patients
to engage with our employees 3 Trust as the base to build a best-in-class governance
Global Investor Call • May 17th 2021 16 A BATEMENT OF CO2 EMISSIONS SETTING A TRAJECTORY TO REACH CARBON NEUTRALITY
CO2 emissions start Reach Carbon Air Liquide decreasing in absolute value Neutrality by 2050 Commitments
~ 2025 2035 2050
-30% Carbon intensity Decrease scope 1 & 2 (a) CO eq emissions in in kg CO2/€ EBITDA 2 vs 2015 absolute value by -33%(b)
(a) at 2015 exchange rate and excluding IFRS16 for greenhouse gas emissions scopes 1 and 2 (b) from 2020 Market based emissions of 32.5 million tonnes CO2eq (Scope 1+2) Global Investor Call • May 17th 2021 17 Becancour HYDROGEN AS A CORNERSTONE OF THE ENERGY TRANSITION… Electrolyzer … AND A TREMENDOUS GROWTH POTENTIAL LH2 storage
Power Our ENGAGEMENT generation, buffering 2050 Decarbonize our production assets Transportation to develop a competitive low-carbon H2 offering at large scale.
% Industry 18 energy of final energy Creating value by decarbonizing demand our customer’s processes, leveraging Building our long-term relationships. heating and power
Be a key enabler of the Hydrogen Industrial feedstock society thanks to our assets, (CCU, DRI) technology and expertise.
Source: Hydrogen Council Global Investor Call • May 17th 2021 18 HYDROGEN BUSINESS TO MORE THAN TRIPLE BEFORE 2035
Before 2035 Capturing demand: Today At ▪ Low Carbon + Renewable H offer Least 2 ▪ New H2 industrial applications ▪ Carbon Capture as a service
3x ▪ H2 mobility Sales ~€ bn >€ bn 2 6 Capturing additional value by
decreasing customers CO2 footprint
Investment in: ▪ CO Capture plants Capex 2 ▪ Electrolyzers +~€8bn ▪ Supply chain for mobility ▪ Takeovers
Global Investor Call • May 17th 2021 19 Takeover & decarbonize
Low-Carbon/Renewable H2 for refining
Low-Carbon/Renewable O2 and H2 for steel and chemicals
CO capture as a service BUT OPPORTUNITIES 2 GO FAR BEYOND HYDROGEN On-site generation for IM customers
enScribe offer for Electronics customers
AliveTM: ASU + Energy Storage
Biogas upgrading
Global Investor Call • May 17th 2021 20 CARE … FOR PATIENTS
Our ENGAGEMENT
Improve the quality of life of chronic In mature economies patients at home through Value-based care
In low & middle Facilitate access to oxygen for rural income countries communities
Global Investor Call • May 17th 2021 21 LEVERAGE HEALTHCARE SOCIETAL ROLE IN LOW AND MIDDLE INCOME COUNTRIES
Facilitating access to O2 for rural communities Up to 800,000 deaths of child pneumonia every year and lack of access to oxygen in rural areas
By equipping with O2 primary care facilities in villages ▪ Air Liquide Access Oxygen Program in Senegal since 2017 (1) ▪ Support to UNICEF SPRINT program since July 2020 → 82 rural health posts equipped by Air Liquide in Senegal
And bringing our expertise in coalitions to support local communities ▪ Close relationships built with key stakeholders: Indicator: Population facilitated with O2 development banks, donors, international agencies and NGOs
(1) SPRINT: Scaling Pneumonia Response Innovation Technologies Global Investor Call • May 17th 2021 22 TRUST … AS THE BASE TO ENGAGE WITH OUR EMPLOYEES
Lost-Time Frequency Rate of AL Employees Our ENGAGEMENT 1.9
0.9 Safety as a prerequisite for action 2010 2015 2020
Provide a common basis of care coverage for all employees Commitment: 100% of employees with a common basis of care coverage package by 2025
Share of women among Managers and Professionals 30% Promote diversity and equal opportunities Commitment: 35% of women among 24% Managers & Professionals by 2025 2010 2015 2020
Global Investor Call • May 17th 2021 23 TRUST … AS A BASE TO BUILD A BEST IN CLASS GOVERNANCE
Board A diversified and independent Board & Shareholders Shareholders: loyalty, close relationship
Ethics in business Promote a responsible dialogue with our business ▪ With customers and patients
stakeholders ▪ With suppliers
Contribute to Developing a close link with local making a positive ecosystems leveraging the Group’s local impact on society set up & Air Liquide Foundation
Global Investor Call • May 17th 2021 24 Sustainable Financing Framework
Global Investor Call • May 17th 2021 25 RATIONALE FOR A SUSTAINABLE FINANCING FRAMEWORK
In line with its sustainability strategy and its new ‘ACT for a Sustainable future’ program published in 2021, Air Liquide has established a Align funding strategy with Contribute Sustainable Financing mission, sustainability to the development of Framework aligned with best strategy and objectives Sustainable Finance market practices to finance sustainable projects with a clear benefit to environment Diversify Air Liquide investor base targeting and society. investments towards low carbon technologies and services
Global Investor Call • May 17th 2021 26 OVERVIEW OF SUSTAINABLE FINANCING FRAMEWORK
Air Liquide Sustainable Financing Framework is aligned with the Green Bond Principles (2018), Green Loan Principles (2020), Social Bond Principles (2020), Social Loan Principles (2021) and Sustainability Bond Guidelines (2018)
Process for evaluation Management Use of proceeds Reporting and selection of proceeds
6 Eligible Green categories Managed by Air Liquide v Intention to allocate within 2 Annual publication of a and 2 Eligible Social Sustainable Finance Working years with a 3 years look-back Sustainable Financing Report categories Group period
Sustainalytics is of the opinion that the Air Liquide Sustainable Financing Framework is robust and transparent.
Sustainalytics is confident that Air Liquide is well-positioned to issue green, social, and sustainability bonds.
Global Investor Call • May 17th 2021 27 1- AIR LIQUIDE GREEN ELIGIBLE PROJECTS
Air Liquide Green Eligible Projects are primarily capital expenditures but may also include maintenance costs, equity shares and investment in dedicated funds as well as R&D and innovation expenses for projects related to the Abatement of CO2 emissions pillar of its ACT priorities.
Hydrogen Energy
Production Efficiency Programs
Air Manufacture of O and N 2 2 Gases Anaerobic Hydrogen Storage of Mobility Hydrogen Hydrogen digestion of Energy bio-waste Efficiency Acquisition and Capture of Construction CO2
Transmission and Distribution of Hydrogen Storage Biogas of Carbon Electricity Green Capture Buildings
Installation of Energy Renovation Efficient Landfill gas Equipment Transport capture and of CO utilization 2
Global Investor Call • May 17th 2021 28 1- GREEN PROJECTS ELIGIBILITY CRITERIA
Eligible Green Projects Eligibility Criteria Anaerobic Digestion of Bio-waste ▪ Biogas Anaerobic Digesters aligned with the EU Taxonomy criteria Biogas Landfill Gas Capture and UtiliSation ▪ Capture of landfill gas for the generation of electricity or heat
Capture of CO Carbon Capture Units for the purpose of decarbonizing hard-to-abate sectors 1 2 ▪ Carbon Capture 1 Transport of CO2 ▪ Pipeline and maritime transport of CO2 Energy Efficiency Programs ▪ Smart & Innovative Operations Energy Efficiency Storage of Electricity ▪ Construction and operation of electricity storage
▪ Production of Hydrogen with emissions below the CertifHy threshold of 4.37 tCO2e/tH2 Hydrogen Production ▪ Manufacture of materials for the liquefaction of Hydrogen ▪ Manufacture of electrolysers for production of Hydrogen below the threshold above
▪ Construction and operation of energy storage facilities where hydrogen met the production threshold Storage of Hydrogen Hydrogen ▪ Conversion of existing underground gas storage facilities
Transmission and Distribution of Hydrogen ▪ Transmission and distribution networks dedicated to Hydrogen ▪ Infrastructure for hydrogen refuelling Hydrogen Mobility ▪ Hydrogen vehicles fleet
Air Gases Manufacture of O2 and N2 ▪ Air Separation Units delivering industry-leading energy efficiency levels Acquisition and Construction ▪ Acquisition and/or construction of building with recognized certification Green Buildings Renovation ▪ Renovation achieving a 30% reduction in Primary Energy Demand Installation of Energy Efficient Equipment ▪ Installation of equipment to improve energy efficiency
1 Sustainalytics tends to view Carbon Capture category as a transition-related activity Global Investor Call • May 17th 2021 29 1- AIR LIQUIDE SOCIAL ELIGIBLE PROJECTS
Home
Air Liquide eligible Social Projects aims Healthcare at providing socioeconomic advancement and empowerment, access to essential services and job creation along the Care for patients Access to Supporting Air Liquide essential Venture Capital pillar of the ACT Strategy Entrepreneurship services Eligible Social Projects include capital Health System Medical Gases expenditures, maintenance costs and Strengthening equity shares as well as R&D and innovation expenses
Global Investor Call • May 17th 2021 30 1- ELIGIBLE SOCIAL PROJECTS
Eligible Social Projects Eligibility Criteria Target Population ▪ Development of home healthcare Home Healthcare and Proximity / ▪ Person in need of medical care, services and of proximity / community Community Care Services including the most vulnerable care services ▪ Services and network infrastructures Access to essential ▪ Hospitals and clinics in need of Medical Gases to expand delivery of medical gases to services medical gases hospitals and clinics ▪ Development of initiative to improve ▪ Population with limited access to Health System Strengthening access to health services in health services in least developed developing countries countries Supporting ▪ Minority interest in start-ups to support Air Liquide Venture Capital ▪ Entrepreneurs and start-ups Entrepreneurship strategic partnerships
Global Investor Call • May 17th 2021 31 2 - PROJECT SELECTION AND MANAGEMENT OF PROCEEDS
Process for Project Selection and Evaluation Management of proceeds ▪ Air Liquide Sustainable Financing working group will evaluate ▪ An amount equivalent to each financing net proceeds will be and select the Eligible Projects. It will be chaired by Air used to finance Eligible Projects which are part of Eligible Liquide CFO with representatives from: Project Portfolio. ▪ Group Financing & Treasury Department, ▪ The Group Financing & Treasury Department will establish a ▪ Group Operation Controls Department, Sustainable Register, that will be reviewed annually by the ▪ Group Sustainability Department, and Sustainability working group. ▪ Each family of eligible project dedicated experts ▪ Air Liquide could include disbursements related to Eligible ▪ The working group will identify Green and Social Eligible Projects made in the 3 calendar years prior to the issuance Projects to be funded. Air Liquide commits on a best effort basis to reach full allocation within 2 calendar years following each Bond issuance.
Global Investor Call • May 17th 2021 32 3 - REPORTING
Allocation Report Impact Report Air Liquide will provide an annual update on the following: An Impact Report will also be provided to support the allocation report above. This report will include both impact and output ▪ The list of outstanding Green, Social and Sustainability financings; indicators: ▪ Impact Indicator of estimated GHG emissions avoided (in ▪ The total amount of proceeds allocated per Eligible Project tCO e/year); category; 2 ▪ Output Indicator used to calculate the impact and detailed in ▪ The share of financing and refinancing; the following slide; ▪ The amount of unallocated proceeds (if any). ▪ The impact reporting will also include information on the methodology.
Global Investor Call • May 17th 2021 33 3 - IMPACT REPORTING OUTPUT INDICATORS
Eligible Projects Description of eligible projects Possible Output Indicators
Anaerobic Digestion of Bio-waste Annual production of biogas (MWh) Biogas Landfill Gas Capture and Utilization Annual amount of landfill gas produced (m3)
3 Capture of CO2 Annual amount of CO2 captured (tCO2 or m ) Carbon Capture 3 Transport of CO2 Annual amount of CO2 transported (tCO2 or m )
Energy Efficiency Programs Annual reduction of energy consumption in % or in MWh Energy Efficiency Storage of Electricity Annual energy stored in MWh
3 Hydrogen Production Annual Hydrogen production (tH2 or m ) Annual Hydrogen stored (tH or m3) Storage of Hydrogen 2 Energy storage capacity (MW) Hydrogen 3 Transmission and Distribution of Hydrogen Annual Hydrogen transported (tH2 or m ) Number of vehicles financed or number of HRS installed or HRS refueling station capacity Hydrogen Mobility (H2 kg per day) Energy saving of the ASU Air Gases Manufacture of O and N 2 2 Information on industrial pilot units when relevant Surface area (m2) Acquisition and Construction 2 Annual energy consumption (kWh/m ) Surface area (m2) Green Buildings Renovation Annual energy consumption (kWh/m2) Reduction in annual energy consumption after renovation (%) Installation of Energy Efficient Equipment Reduction in annual energy consumption after installation (%) Home healthcare & proximity /community care services Estimated number of beneficiaries Access to essential services Medical gases Estimated number of beneficiaries Health System Strengthening Estimated number of beneficiaries Number of start-ups supported Supporting entrepreneurship ALIAD venture capital Estimated number of full time employments created, when available
Global Investor Call • May 17th 2021 34 Group Credit Profile
Global Investor Call • May 17th 2021 35 NET DEBT RATIOS UNDER CONTROL AS OF DEC 31, 2020 (in M€)
12,373
10,609
1.79x
Global Investor Call • May 17th 2021 36 RECORD CASH FLOW, SIGNIFICANT DELEVERAGING (in M€)
Cash Flow Gearing 24.1% of sales 64.0% +190bps Gearing <12,373> +4,932 55.8%
<282> +204 <1,380> <10,609>
<1,971>
+273
(1) Including acquisitions, transactions with minority shareholders, net of divestitures (2) Including share purchases and capital increases Global Investor Call • May 17th 2021 37 A WELL-DIVERSIFIED FINANCING STRUCTURE AS OF DECEMBER 31, 2020
Sources - Gross debt Currencies - Net debt
Other 11%
JPY 2% EUR 47%
USD 40%
Others: put options granted to minority shareholders. Global Investor Call • May 17th 2021 38 DIVERSIFIED CAPITAL MARKET DEBT WELL SPREAD OVER TIME MATURITY SCHEDULE AS OF DEC 31, 2020 (in M€)
2046
2038
Global Investor Call • May 17th 2021 39 “A” LONG TERM CREDIT RATING COMMITMENT
■ Long-term rating: A- ■ Long-term rating: A3 ■ Short-term rating: A-2 ■ Short-term rating: P-2 ■ Outlook: Positive on 24 July 2020 ■ Outlook: Positive on 4 May 2021 ■ Rationale: ■ Rationale: ▪ “The resilient business model will limit the downside of the ▪ “Air Liquide’s A3 rating takes into account the groups position as global recession. We view Air Liquide's business model as the second largest company in the oligopolistic industrial gas resilient given its exposure to diverse end-markets and industry, a sub sector of the chemical industry characterized by geographies and the significant proportion of long-term relatively stable volumes, profit and cash generation. The sector contracts. [...] We anticipate improved profitability mainly due to has once again demonstrated resilience during 2020 proactive cost management”. underpinned by relatively stable EBITDA generation during the Covid-19 pandemic. Since its acquisition of Airgas in 2016 the ▪ “We see Air Liquide as well positioned and in line with industrial company has slowly but consistently reduced its leverage and gas industry peers with respect to environmental and social improved its profitability.” risks. The group is heavily focused on environmental factors.” ▪ “The positive outlook on Air Liquide's rating reflects Moody's ▪ “The outlook remains positive, reflecting that we may raise the expectation that Air Liquide's credit metrics will approach a level rating in the next six-12 months, if adjusted FFO to debt deemed to be commensurate with a higher rating in the next improves sustainably above 30%”. 12-18 month.
Global Investor Call • May 17th 2021 40 Potential Bond issue Summary
Global Investor Call • May 17th 2021 41 POTENTIAL BOND ISSUE SUMMARY
Issuer / Guarantor Air Liquide Finance (the “Issuer”), guaranteed by L’Air Liquide S.A. (the “Parent Guarantor”)
Form of Issue Green bond Senior, Unsecured Global Notes
Documentation EMTN programme
Active Bookrunners Crédit Agricole, BNP Paribas, HSBC, Société Générale, Natixis
• The Parent Guarantor long term credit rating is “A-” from Standard & Poor’s with a Positive Outlook and “A3” from Moody’s with a Positive Outlook Rating v • Notes will be rated by Standard & Poor’s and Moody’s
Use of Proceeds Financing and refinancing of Green eligible investments
Tenor 10-year
Indicative size 500m€
Second Party “Air Liquide’s inaugural issuance under this Framework will be a green bond, and has therefore been Opinion assessment assessed by Sustainalytics for its alignment to the GBP”
Global Investor Call • May 17th 2021 42 A WELL BALANCED PORTFOLIO EXPECTED FOR OUR INAUGURAL GREEN BOND
Categories allocation Financing and Refinancing Breakdown
Green Innovation - R&D Energy efficiencies Refinancing
Biogas Carbon Capture
Green Buildings
Hydrogen Air Gases Financing
Global Investor Call • May 17th 2021 43 Case studies
Global Investor Call • May 17th 2021 44 FONTANELLA FROM TONS OF MANURE TO FERTILIZER AND TRUCK FUEL
▪ An Air Liquide investment in the overall biomethane value chain, in partnership with DIS, long term AL partner
▪ 23 GWh/yr biomethane capacity equivalent to the yearly consumption of 35 HEAVY-DUTY VEHICLES
▪ Participates to make Air Liquide leader as producer and distributor of bioLNG in Lombardy and Veneto basins
A circular economy project leading to transform agricultural wastes into a fertilizer and bioLNG valorized locally
Global Investor Call • May 17th 2021 45 LEADING THE HYDROGEN ECOSYSTEM DEVELOPMENT
Electrolysis CCU + Low-Carbon H CCS + Low-Carbon H 2 2 Denmark France (In Devt.) Antwerp / Benelux KEY 1.2 MW 1 CO2 Capture “Cryocap” CO2 Capture FIGURES Electrolysis Bécancour, QC 1x 20MW 1.2 Mt of H2/year
Large scale 1,850 km H electrolysis 2 (In Devt.) H2V France pipeline 200 MW
53 large H2 / CO plants
H2 reduction in steelmaking Germany 20MW PEM Electrolyzer
Supply Chain H2 Network for trucks US West Coast France / Benelux / Germany H Stations for €2bn sales H Liquefier 2 HyTrucks 2 Consumers 70 HRS Co-founder of Supply Chain H2 Forklifts H2 Bus & Taxi fleets (In Devt.) Norway US+EUROPE France / China / Korea
Liquid H2 for ships 9 sites
Global Investor Call • May 17th 2021 46 FOCUS ON A BASIN THE BELGIUM-NETHERLANDS ECOSYSTEM
A favourable ecosystem H-vision ▪ Strong renewable energy potential ▪ Major industrial & transportation hub Porthos ▪ Strong national & EU support for emission reduction Northern Lights Electrolyzer
Large Air Liquide footprint HyTrucks ▪ 7 H2 production units and 6 ASUs
Antwerp@C ▪ >900km H2 Pipeline ▪ ~60 customer sites supplied by Large Industries Electrolyzer Air Liquide involved in flagship projects
In development Electrolysis CCU / CCS High grade heat
H2 Mobility
Global Investor Call • May 17th 2021 47 H2 MOBILITY HyTRUCKS: HYDROGEN TO DECARBONISE A MAJOR LOGISTICS HUB
2025 picture
Hydrogen for heavy-duty freight transport ▪ Large-scale deployment of hydrogen heavy-duty trucks for drayage and regional operations Port of Rotterdam 500 trucks, 10 HRS, 20tpd ▪ Deployment of refueling infrastructure ▪ Semi-captive fleet operations Rhine river ports 200 trucks, 5 HRS, 8tpd A coalition of key stakeholders along the
Port of Antwerp whole value chain to enable: 300 trucks, 6 HRS, 12tpd ▪ De-risking of required technologies ▪ A European industrial offer for hydrogen trucks and refueling stations ▪ Initiate refueling infrastructure in the busiest European logistics hub
Global Investor Call • May 17th 2021 48 BUILD LOW CARBON HYDROGEN CAPACITIES THE 20 MW BECANCOUR ELECTROLYZER EXAMPLE
Largest PEM electrolyzer running on hydropower (started in Q4 2020)
Integration in existing
AL basin, with H2 liquefier
For industrial use and mobility
> 100 MW
20 MW
1.2 MW
2018 2020 2022-23
Global Investor Call • May 17th 2021 49 FOCUS: CO2 CAPTURE AS A GREEN ACTIVITY
CO2 Capture & Storage is recognized as unavoidable in 1.5° Scenarios Cumulative CO2 stored in various 1.5° pathways ▪ “Hard-to-abate” heavy industry sectors ▪ Decarbonization of SMRs in parallel with electrolysis scale-up ▪ Key enabling technologies for future BECCS* activities
CCS activities seen as integral part of our Sustainable Financing Framework
*Bioenergy with carbon capture and storage source: IRENA World Energy Transitions Outlook, March 2021 - IPCC Special Report 1.5° Global Investor Call • May 17th 2021 50 NEW CAMPUS TECHNOLOGIES IN GRENOBLE DEDICATED TO DEEP TECH AND ENERGY TRANSITION
Together with the five Innovation Campuses in the Air Liquide group, this site is responsible for designing and manufacturing innovative high-tech solutions for the rising deep tech and energy transition markets.
▪ Total area of ~6,000 m2, supporting new ways of working
▪ Should be completed in 2022.
▪ Campus is aiming for “Very Good” BREEAM certification
Buildings designed to reduce energy consumption and environmental impact. They are equipped with wooden structures, large glazed sections that provide natural lighting, and a cooling system that uses the circulation of ground water instead of air conditioning.
Global Investor Call • May 17th 2021 51 Appendices
Global Investor Call • May 17th 2021 52 REGULAR AND SUSTAINED PERFORMANCE CAGR OVER 30 YEARS(1)
Revenue (in €m) EPS(2) (in €m)
+5.3% +6.7%
Cashflow (in €m) Dividend(2) (in €m)
+6.5% +8.4%
(1) Calculated according to prevailing accounting rules over 30 years. (2) Adjusted for the 2-for-1 share split in 2007, for free share attributions and for the capital increase completed in October 2016. Global Investor Call • May 17th 2021 53 INNOVATION AT THE HEART OF A NEW LOW-CARBON WORLD
A Global ecosystem for Innovation close to markets and customers 33% Annual innovation Paris Frankfurt Yantai Seoul Tokyo expenses(1) for Energy Transition
Recent major technology partnerships
Shanghai Newark, DE
Dubai
3 E&C manufacturing centers 6 Innovation Campus
(1) in 2020, €303m of total innovation expenses Global Investor Call • May 17th 2021 54 ENERGY TRANSITION ALREADY SUPPORTING OUR GROWTH
Energy Transition Related Sales From Core Business
O2 for Blast O2 to Glass enScribe ~€650m Furnace Float ~€440m and New Markets
2021 2018 Biomethane & H Mobility estimate New Technologies 2
of energy transition projects in 2019 & 2020 Sales CAGR 2018-2021e +13% ~25% investment decisions
Global Investor Call • May 17th 2021 55 AND ACCELERATING
Investment Opportunities 12-month portfolio Selectivity in the projects 2019 2020
Same expected returns
Share of % Energy 44 Leverage existing basins Transition 29% projects
Apply Large Industries - Industrial Merchant 12-month combined business Portfolio ~€2.9bn ~€3.1bn model
Global Investor Call • May 17th 2021 56