2015 REFERENCE DOCUMENT Including the Sustainable Development Report Contents Key Figures 2 1 Management Report 9 4 Financial statements 199 History of the Air Liquide Group 10 Consolidated fi nancial statements 201 Activities and risk factors 15 Statutory accounts of the parent company 275 2015 Performance 32 Investment cycle and fi nancing strategy 45 Innovation 53 Strategy and outlook 62 5 Annual General Meeting 2016 297 Board of Directors’ Report on the resolutions presented to the 2016 Combined Shareholders’ 2 2015 Corporate Social Responsibility Meeting 298 and Sustainable Development Report 65 Resolutions presented for the approval of the Combined Shareholders’ Meeting – Introduction 66 May 12, 2016 307 Our 2015 Social and Environmental Contribution 67 Statutory Auditors’ Reports 327 Environmental, social and governance (ESG) report 69 Reporting methodology 113 Independent verifi er’s report 115 Appendix 118 6 Additional information 339 Share capital 340 General information 346 3 Corporate governance 119 Trade payables 356 Factors that may have an impact in the event Management and control 120 of a takeover bid 357 Report from the Chairman of the Board of Directors 123 Person responsible for the Reference Document 359 Remuneration of the Executive Offi cers and Directors Cross-reference table for the Reference Document 360 of L’Air Liquide S.A. 147 Cross-reference table for the Annual Financial Report 364 Statutory Auditors’ Report 174 Cross-reference table for the Management Report 365 Transactions involving Company shares performed Glossary 367 by Executive Offi cers and members of Executive Management 175 Description of share subscription option Ten-year consolidated fi nancial summary 372 and performance share plans 176 Employee savings and share ownership 184 Information concerning members of the Board of Directors and Executive Management 185 Statutory Auditors’ offi ces and fees 197 2015 Reference Document including the Corporate Social Responsibility and Sustainable Development Report World leader in gases, technologies and services for Industry and Health, Air Liquide is present in 80 coun- tries with more than 50,000 employees and serves more than 2 million customers and patients. Oxygen, nitro- gen and hydrogen have been at the core of the Company’s activities since its creation in 1902. Air Liquide’s ambi- tion is to be the leader in its industry, delivering long-term performance and acting responsibly. Air Liquide ideas create value over the long-term. The commitment and constant inventiveness of its people are at the core of the Company’s development. Air Liquide anticipates the challenges of its markets, invests locally and globally, and delivers high-quality solutions to its customers, patients and the scientifi c community. The Company relies on competitiveness in its operations, on targeted investments in growing markets and on innovation to deliver profi table growth over the long-term. Air Liquide’s revenues amounted to 16.4 billion euros in 2015, and its solutions that protect life and the environment represented more than 40% of sales. Air Liquide is listed on the Paris Euronext stock exchange (compartment A) and is a member of the CAC 40 and Dow Jones Euro Stoxx 50 indexes. Visit our website www.airliquide.com The original French version of this Reference document was fi led with the French fi nancial markets Authority (AMF), on March 1, 2016, in accordance with Article 212-13 of its General regulations. It may be used in support of any fi nancial transaction if it is supplemented by a prospectus approved by the AMF. This document contains all information required for the Financial Annual Report. It was prepared by the issuer and its signatories assume responsibility. This document is a non-binding “free” translation from French into English and has no legal value other than an informative one. Should there be any difference between the French and the English version, only the text in French language shall be deemed authentic and considered as expressing the exact information published by Air Liquide. A fi nancial and technical glossary is provided at the end of the document – pages 367 to 371. 2015 REFERENCE DOCUMENT AIR LIQUIDE 1 KEY FIGURES A GLOBAL PRESENCE World leader in gas and services Present in 80 countries 51,500 employees for Industry and Health 201 5 Group revenue by activity Other activities Gas & Services 3% 90% Global Markets & Technologies(a) 2% Engineering & Construction 32% of revenue for Gas & Services 5% (b) Electronics for Industry realized in developing Large Industries 9% 32% economies 16,380 Healthcare million euros 17% Industrial Merchant 32% 2015 Group revenue by region and by activity, for Gas & Services (G&S) ■ Europe ■ Americas Electronics Electronics 11% 3% Large Industries Large Industries 35% 33% Healthcare 10% 3,595 Healthcare 6,749 million euros 33% million euros 24% of G&S 46% of G&S Industrial Merchant Industrial Merchant 44% 31% ■ Asia-Pacifi c ■ Middle-East & Africa Healthcare 8% Electronics 25% Large Industries Large Industries 37% 3,850 39% 558 Healthcare million euros million euros 4% 26% of G&S 4% of G&S Industrial Merchant 32% Industrial Merchant 55% (a) See the description of the new Global Markets & Technologies activity p. 25. (b) Gas and Services for Industry (GSI): Large Industries, Industrial Merchant, Electronics. 2 2015 REFERENCE DOCUMENT AIR LIQUIDE KEY FIGURES A WIDE RANGE OF MARKETS AND A STRONG BUSINESS MODEL… KEY ELEMENTS BY BUSINESS LINE (a) (b) > LARGE INDUSTRIES 35% of G&S // 5,201million euros // +4% in 2015 // +5% on average over 5 years • High capital intensity • Customers in metals, chemicals, refi ning and energy • Industrial basin and pipeline network strategy • Long-term contracts (15 years), take-or-pay clauses and indexed energy cost > INDUSTRIAL MERCHANT 36% of G&S // 5,229 million euros // +4% in 2015 // +2% on average over 5 years • More than 1 million customers • Technological solutions adapted to customers’ businesses • Synergies with Large Industries • Importance of logistics > HEALTHCARE 19% of G&S // 2,799 million euros // +9% in 2015 // +8% on average over 5 years • Medico-technical services activity in a regulated sector • 1.3 million patients • Geographical density • Sophisticated information systems essential for the activity > ELECTRONICS 10% of G&S // 1,523 million euros // +23% in 2015 // +5% on average over 5 years • Technological solutions with ultra-purity gases and adapted molecules • Long-term contracts for nitrogen • Concentration of the activity in Asia (a) Gas & Services bring together the following Business Lines: Large Industries, Industrial Merchant, Healthcare, and Electronics. See details in the Activities section on p. 15. (b) Published data. 2015 REFERENCE DOCUMENT AIR LIQUIDE 3 KEY FIGURES … DRIVEN BY COMMITTED WOMEN AND MEN Number of employees since 2006 (10 years) Diversity evolution since 2006 (10 years) – 55,000 % of women among Group employees 51,500 50,300 30 28% 49,500 27% 27% 50,000 26% 26 % 50,250 25% 46,200 25 24% 24% 24% 24% 45,000 43,000 43,600 40,300 42,300 20 40,000 36,900 35,000 15 30,000 10 25,000 18% 19% 22% 24% 24% 26% 26% 27% 28% 29% 5 20,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0 Number of employees 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Percentage of women among Group employees Percentage of women among Managers and Professionals Number and frequency of lost-time accidents of Group employees since 1996 (20 years) 300 8 7 250 6 207 200 188 194 5 164 167 152 153 147 153 149 151 150 137 144 144 4 135 134 136 135 131 131 14 3.7 3 3.4 100 138 3.2 2.9 2.8 2 2.4 2.3 2.3 2.3 2.3 50 2.1 2.1 1.9 1.8 1.7 1.7 1.7 1 1.6 1.6 1.6 0 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Number of Number of Number of Lost-time accident lost-time accidents lost-time accidents lost-time accidents frequency rate(a) (2014 perimeter) (after acquisitions) (a) Number of lost-time accidents with at least one lost-day per million hours worked by Group employees. 221 projects Air Liquide Foundation 250 employees involved in 45 countries since its creation Corporate Governance in 2015 Internal Governance in 2015 82% of Board members are independent Directors of the Group’s employees belong to an entity that has 97% a local Code of Conduct 45% of Board members are women of the Group’s revenues covered by the Industrial of Board members are of foreign nationality 91% Management System (IMS) over the last fi ve years 55% (non-French) of revenues subject to internal control system >90% processes 4 2015 REFERENCE DOCUMENT AIR LIQUIDE KEY FIGURES AN INNOVATIVE COMPANY INNOVATION EXPENSES 271 new patents fi led in 2015 Innovation expenses (10 years) 280 278 282 4.0% 265 252 257 > NEW ACTIVITY – GLOBAL MARKETS & 245 235 224 218 TECHNOLOGIES (GM&T) 210 3.0% 190 • Dedicated to innovation; activities 175 170 1.8% incubator 140 1.8% 1.8% 2.0% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.6% 1.6% • Development of existing markets 105 (space, aerospace, maritime, extreme 70 1.0% cryogenics, etc.) 35 • Opening of new markets 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (hydrogen energy, Bio-Natural Gas Vehicles, Innovation expenses (in millions of euros) biofuels, etc.) Innovation expenses in percentage of Group revenue GLOBAL NETWORK SUPPORTING INNOVATION > 6,200 EMPLOYEES R&D ALTEC E&C GM&T i-Lab & ALIAD Digital transformation 2015 REFERENCE DOCUMENT AIR LIQUIDE 5 KEY FIGURES REGULAR AND SUSTAINED PERFORMANCE Created in 1902 19.5% Gas & Services Operating Margin