2024 Annual General Meeting

Replay of the Air Liquide 2024 Shareholders' Annual General Meeting

Benoît Potier, Chairman of the Board of Directors:

Ladies, Gentlemen, Dear Shareholders,

It is a great pleasure for me, as Chairman of the Board of Directors, to welcome you here to the Palais des Congrès.

I am delighted to once again have this unique opportunity to speak directly with you, our Shareholders.

I would like to take this opportunity to extend a warm welcome to those joining us for the first time, whether in person or online, as there are now nearly 800,000 individual Shareholders who have placed their trust in us, and I thank you for it.

This Annual General Meeting is an opportunity to present your Group's strategy, but it is also an important moment for discussion, as we wish to take the time to answer your questions or concerns, which we will do during the question and answer session of our Meeting.

As you know, two years ago, we launched our new strategic plan, ADVANCE.

The results that will be presented to you by Jérôme Pelletan, our Chief Financial Officer, are in line with our vision and demonstrate our ability to achieve solid and consistent performance, even when circumstances become more demanding.

This demanding environment makes the performance of our 67,800 employees even more commendable, and I would like, on behalf of the Board, to sincerely thank and congratulate them for their individual and collective contributions and their unwavering commitment.

I invite you to applaud them.

It was also two years ago that the Group opened a new chapter in its history by implementing the new governance structure currently in place to steer your Group.

I am delighted with the effective and fully operational collaboration between the Board of Directors and the General Management.

In this respect, the partial renewal of the Board last year has strengthened the Board's very positive working dynamic, with the arrival of new independent directors with complementary skills.

I would now like to acknowledge the presence of all the members of the Board of Directors.

Present here, to my right, is Xavier HUILLARD, Lead Director, and to my left, François JACKOW, Chief Executive Officer.

Also present on stage,

to my right:

Ms. Fatima Tighlaline and Mr. Philippe Dubrulle, directors representing the employees

Ms. Christina Law

Mr. Alexis Perakis-Valat

Ms. Kim Ann Mink

To my left:

Ms. Annette Winkler

Mr. Bertrand Dumazy

Ms. Catherine Guillouard

Ms. Monica de Virgiliis

Mr. Michael H. Thaman

You are gathered in a Combined Annual General Meeting convened by a notice published in the BULLETIN DES ANNONCES LEGALES OBLIGATOIRES (Bulletin of Mandatory Legal Announcements) on March 20, 2024, and reprinted in the legal notices journal ACTU JURIDIQUE on the same day.

All holders of registered shares, as well as the Statutory Auditors, have been duly convened to this Meeting.

I inform you that these proceedings are being broadcast live on the Company's website.

I am pleased to welcome those who are listening to us through this communication channel.

I would like to point out that this event is open to people other than shareholders; in particular, journalists are present in the room.

I remind you that it is forbidden to film or broadcast images of this Meeting without the Company's authorization.

You have been given a voting tablet.

Its operation will be explained to you when it is time to vote.

We will now proceed with the formation of the Bureau of the Meeting.

In my capacity as Chairman of the Board of Directors, I will preside over it and propose to appoint as Scrutineers:

Mr. Michael Herskovich, representing BNPP

Ms. Floriane Rigourd, representing Amundi

the two members of the Meeting holding the largest number of votes and accepting these functions.

They are present in this room in the front row.

With the agreement of the scrutineers, Ms. Muriel Serre, Secretary of the Board of Directors, seated in the front row, will perform the duties of Secretary.

The Bureau is now constituted.

As the Meeting brings together more than a quarter of the shares with voting rights, the quorum is therefore reached and the Meeting can validly deliberate.

I therefore declare the Annual General Meeting open.

The agenda that was published has been displayed on the screen.

Agenda

Ordinary business:

Approval of the parent company financial statements for the year ended December 31, 2023

Approval of the consolidated financial statements for the year ended December 31, 2023

Allocation of the profit for the 2023 financial year; setting of the dividend

Authorization granted to the Board of Directors for 18 months to allow the Company to trade in its own shares

Renewal of the term of office of Ms. Kim Ann Mink as a Director of the Company

Renewal of the term of office of Ms. Monica de Virgiliis as a Director of the Company

Special report of the Statutory Auditors on the agreements referred to in Articles L. 225-38 et seq. of the French Commercial Code

Approval of the components of compensation paid during or awarded for the financial year ended December 31, 2023, to Mr. François Jackow, Chief Executive Officer

Approval of the components of compensation paid during or awarded for the financial year ended December 31, 2023, to Mr. Benoît Potier, Chairman of the Board of Directors

Approval of the information relating to the compensation of corporate officers mentioned in Article L. 22-10-9 I of the French Commercial Code

Approval of the compensation policy applicable to the Chief Executive Officer

Approval of the compensation policy applicable to the Chairman of the Board of Directors

Approval of the compensation policy applicable to the Directors

Setting of the total annual compensation amount for the Directors

Appointment of the firm PriceWaterhouseCoopers Audit as Statutory Auditor in charge of certifying sustainability information

Appointment of the firm KPMG S.A. as Statutory Auditor in charge of certifying sustainability information

Extraordinary business:

Authorization granted to the Board of Directors for 24 months to reduce the share capital by canceling treasury shares

Delegation of authority granted to the Board of Directors for 26 months to increase the share capital by incorporating premiums, reserves, profits or other items, for a maximum amount of 320 million euros

Delegation of authority granted to the Board of Directors for 26 months to carry out capital increases with cancellation of the preferential subscription right reserved for members of a company or group savings plan

Delegation of authority granted to the Board of Directors for 18 months to carry out capital increases with cancellation of the preferential subscription right reserved for a category of beneficiaries

Amendment of Article 11 (Composition of the Board of Directors) of the articles of association concerning the modification of the age limit applicable to a percentage of Directors

Amendment of Article 12 (Organization and management of the Board of Directors) of the articles of association concerning the modification of the age limit of the Chairman of the Board of Directors

Ordinary business:

Powers for formalities

All documents required by the regulations in force have been placed on the Bureau of the Meeting.

In addition, all preliminary documents were made available to shareholders at the head office via the Shareholder Services Department and on the Company's website in accordance with legal and regulatory conditions.

No Shareholder has made use of their right concerning the possible inclusion of items on the agenda or draft resolutions.

The Social and Economic Committee received timely communication of the documents and information submitted to the Annual General Meeting.

It has not made use of its right concerning the possible inclusion of draft resolutions on the agenda.

As every year, I propose, in the interest of the discussions, that we dispense with the reading of the Board of Directors' reports, the main elements of which are presented to you below.

As part of the preparation for this Meeting, we conducted a survey to which more than 4,300 shareholders responded, and I thank them for it.

This was useful for us to know the topics you want to see addressed - the 2024 outlook and hydrogen activities being the most cited subjects.

We will therefore begin with the presentation of the Financial and Extra-Financial Performance and the 2023 results with Jérôme Pelletan, Group Chief Financial Officer.

I will then present the strategic framework with a brief review of the global context and its implications for your Group.

François Jackow will present the Strategy, environmental and societal progress, as well as the 2024 outlook.

Then, I will continue with Governance, and then I will give the floor to Xavier Huillard, Chairman of the Remuneration Committee.

Finally, the Statutory Auditors will provide a summary of their reports.

We will then proceed to the Question & Answer session, which we wanted to be long to allow for real time for exchange and debate with the audience.

You will be able to speak live and, for those who wish, you can now and until 4 p.m. send your questions by SMS to the number displayed on the sides and which is also written on your counter-mark.

Let us specify that this method respects your anonymity and that we do not have access to your telephone details.

Finally, we will close our Meeting with the vote on the resolutions, via the tablet that was given to you during registration.

I now give the floor to Jérôme.

FINANCIAL AND EXTRA-FINANCIAL PERFORMANCE – 2023 RESULTS

Ladies, Gentlemen, Dear Shareholders,

In 2023, your Group achieved a very solid performance, both financially and extra-financially.

This performance is all the more remarkable as it was achieved in a complex environment: from the continuation of international conflicts, to the slowdown in global growth, and the persistence of inflation.

Regarding our financial results, I will highlight the following 4 main points: - first, solid comparable sales growth,

second, a further significant increase in the operating margin

third, the continued strengthening of our balance sheet,

and finally, a record level of investment decisions.
In 2023, our sales reached 27.6 billion euros.
They increased by +3.7% compared to 2022, on a comparable basis.
On a published basis, they decreased by -7.8%, due to a negative currency effect and the fall in energy prices.
I remind you that variations in energy costs are contractually passed on to our Large Industries customers.
So this is a purely accounting effect, with no impact on the operating margin.
It is the comparable sales that matter, and as you can see, they are progressing in 2023.
Let's move on to our activities:
The Gas & Services business, which represents 95% of our sales, increased by +4.2% on a comparable basis.
All our major geographical areas are growing, particularly the Americas but also Europe, with respective growth rates of +5% and +4%.
By business line, Industrial Merchant and Healthcare were particularly dynamic.
They more than offset the relative slowdown in Electronics and the more mixed activity in Large Industries this year.
Now for our other activities:
The consolidated revenue of Engineering & Construction is down by -15.6%, but this figure excludes the activity related to internal projects for Large Industries and Electronics, which are increasing significantly.
Thus, order intake for third-party clients and the Group's needs reached a new record at 1.5 billion euros.

Finally, the Global Markets & Technologies business, representing 3% of Group sales, is in slight decline.

Here again, order intake for Group projects and third-party clients is on the rise.

They amount to nearly 930 million euros.

Let's move on to my second point.

At 5 billion euros, the recurring operating income shows strong comparable growth of +11.4%.

The Group's operating margin, as a percentage of revenue, increased again by +80 basis points excluding the energy effect.

The margin improvement results from three factors.

First of all, our dynamic price management in Industrial Merchant, where our value-added offerings allow us to adjust our selling prices.

Next, record efficiencies. They reached nearly 466 million euros in 2023. This is a very good result.
They indeed include significant savings on purchasing, which are obviously more difficult to achieve in an inflationary period.

Finally, the active management of our business portfolio, with 2 divestitures and 14 targeted acquisitions in 2023.
Let's now move on to my third point.
The strong increase in revenue on a comparable basis as well as the new improvement in the margin allow for a +13.3% increase in recurring net profit, excluding currency effects, to 3.3 billion euros.
Let's now address Air Liquide's balance sheet and cash flows, which are once again strengthened.
The cash flow from operating activities increased by +6.6% excluding currency effects.
We can thus continue to reduce our debt, while paying dividends and investing for the future.
Regarding value sharing, I would like to point out that the sums paid to our employees, which include salaries but also profit-sharing, incentive plans and other elements, are almost three times higher than the amount of dividends.
The Group's net debt-to-equity ratio stands at 37%, compared to 42% at the end of 2022.
Finally, the recurring return on capital employed reached 10.6%, in line with the objective of our ADVANCE strategic plan.
To conclude, let's talk about our investments. Thanks to our cash level, their momentum is accelerating.
Thus, our investment decisions reached a record level of 4.3 billion euros.
In addition, the portfolio of investment opportunities at 12 months reached 3.4 billion euros at the end of 2023.
It is based more than 40% on projects related to the energy transition.
Regarding the improvement of the operating margin, we have almost reached in two years the initial ambition set for 2025 in our ADVANCE plan.
We are now announcing a doubling of this ambition.
We are now aiming for an increase of +320 basis points over 4 years.
And by the way, our overall performance has been praised by the markets, and in this respect, we surpassed the 100 billion euro market capitalization mark on March 6, 2024.
After our financial results, let's look at our extra-financial performance, which are now two inseparable dimensions.
In 2023, the latter was solid.
First, on the environmental front.
The Group aims to achieve carbon neutrality by 2050, with a -33% reduction in its CO2 emissions in absolute terms on scopes 1 and 2 by 2035.
And indeed, in 2023, our CO2 emissions decreased by -4.7% compared to 2022, even as our comparable sales increased by +3.7%.
We therefore maintain our ambition to begin the inflection of our emissions in absolute value, starting in 2025.
In terms of water management, we have defined action plans for our priority sites.
And concerning biodiversity, our commitments are now recognized by Act4nature.
Our roadmap also includes social and societal components.

In healthcare, the deployment of personalized support plans reached 55% of patients in 2023.

We have also facilitated access to medical oxygen in rural areas in Africa: this represents more than 200,000 additional beneficiaries compared to 2022.

For our employees now, the Group is also making commitments:

Safety first: this is our absolute priority and a prerequisite for all our actions.

In 2023, the lost-time injury rate stood at 1.0, one of the Group's best performances in 20 years.

Diversity, next. As you can see on the screen, this is notably achieved through the continuous increase in the share of women among our engineers and managers.

The deployment of a common basic social coverage is also accelerating.

I remind you that it includes health coverage, but also life insurance and paid maternity leave of 14 weeks everywhere in the world.

Finally, 73% of our employees now have access to our "Citizen at Work" program, which allows them to dedicate part of their working time to helping local communities.

In summary, Air Liquide delivered a very solid performance in 2023 in a complex and changing environment.

Furthermore, the performance of the first quarter of 2024 confirms the solidity of our growth and the resilience of our business model, with in particular a 2.1% increase in comparable sales.

The Group is thus very well positioned to pursue its ADVANCE plan, both on the financial and extra-financial fronts.

And so, for 2024, we are confident in our ability to, on the one hand, increase our operating margin again, and on the other hand, achieve recurring net profit growth, at constant exchange rates.

Ladies, Gentlemen, dear Shareholders, thank you for your attention.

Thank you Jérôme for this presentation of the financial and extra-financial results.

Ladies, Gentlemen, Dear Shareholders,

I now propose to briefly review the global context;

to outline the major implications for your Group; and to highlight our strengths to adapt successfully.

The global environment that we are all now familiar with, and in which we have now learned to live, has once again become complex.

The world is seeking a new balance. Some societal progress is visible and undeniable, while other fundamental advances seem to be called into question.

More than ever, nothing is definitively acquired, and society must continually fight to maintain its march towards progress.

But I am also convinced that in the face of crises and tensions, there are positive forces of change that will bring about unprecedented opportunities and advance Society, as well as your Group.

I will come back to this in a few moments.

So it is with this world of paradoxes and changes that we must deal today, taking into account several factors:

Firstly, global growth prospects remain uncertain, even if the economy is in a better position than a year ago.

Thus, the risk of a global recession seems to be receding, largely thanks to the strength of the American economy and, perhaps, a slight recovery in growth in China, or even in Europe.

Secondly, political stability and national investment plans (in the energy transition, electronics or more generally the manufacturing industry) will be particularly scrutinized.

2024 is a “super election year”: 49% of the world's population is called to the polls;

with election results that could influence the economy and investments.

Similarly, regional conflicts (Ukraine, Gaza) and the situation in Taiwan could exacerbate geopolitical tensions, and the growing competition between the United States and China could continue to weigh on global economic growth (with its effects on financial markets, multilateral trade, and investment decisions).

Thirdly, particularly critical in Europe, sovereignty issues are becoming paramount, whether it be energy independence, access to natural resources or technological advances.

Addressing these challenges on a European scale is vital to remain competitive and secure our future on the world stage.

I will end with the ESG requirements, that is to say Environmental, Social and Governance, which now largely color the strategic trajectory of companies.

Not only because the way we conduct our business is now evaluated against these criteria, but also and above all because they reflect deep and shared convictions by citizens around the world.

Your Board now takes these externalities into account very early on when examining the Company's roadmap.

François will come back to this.

As you understand, dear Shareholders, it is in these more turbulent waters that your Group is navigating, and we have prepared for it.

By remaining positioned in sectors that are both traditional and innovative, located at the forefront of the economy, we are able to anticipate market developments, while remaining faithful to our business model.

That being said, we see today that the nature of our growth has profoundly changed. This change in nature is twofold, as it impacts both our geographies and our markets.

Thus, geographically, the most loyal among you will undoubtedly remember a time when our strategy consisted mainly of rapidly duplicating the Group's know-how on an expanded geographical basis.

In other words, it was a strategy of expansion and conquest, perfectly relevant and adapted to a period when the priority was to capture growth where it was generated (for example in China, Eastern Europe, or the Middle East).

We replicated our model and grew in volume.

Applied successfully for 20 years, this approach has increased the number of countries in which we are currently present - more than 70, which makes Air Liquide a world major in its field.

Today, it is the management of risk, particularly geopolitical risk, that has become a strategic issue.

How can we best mitigate the risks we take through our location and investment decisions around the world?

The answer for us is to rely more and more on a strategy of regional densification.

By strengthening our local network in a business area, we optimize our investments, improve the efficiency of our operations, and leverage our knowledge of the country, which helps to reduce the potential impact of a major customer or ecosystem player failing.

This is, for example, what we put into practice in the Industrial Merchant business by acquiring Airgas in the United States, and what we are continuing in China, where our strategy of densification through acquisitions on the scale of large basins is bearing fruit.

Of course, this does not mean the end of all projects to enter new countries or to expand within emerging economic powers that offer growth prospects, but with increased selectivity.

The nature of our growth has thus changed geographically but also in terms of markets.

And you have probably noted it over time, we now serve the markets of mobility, cement, 3D printing, and potentially energy and quantum, to name but a few.

I would like to focus on four key markets:

First, the energy transition. Climate and Energy have become truly critical "sectors" for which there is a growing demand for sustainable solutions, from renewable energies to low-carbon technologies.

In all these applications, as you know very well, our solutions are now at the forefront (hydrogen, carbon capture).

Then Health and Food, where the increased need for well-being and new eating behaviors are stimulating demand for innovative health products and services, as well as sustainable food solutions.

Here again, the Group is very well positioned, particularly in China, in agriculture and livestock.

Thirdly, I will mention Digital, as well as the associated Technologies and services, which are now in exponential growth.

In electronics, for example, the acceleration of the digital transformation is driving demand for increasingly sophisticated, miniaturized, and energy-efficient products.

It is in these areas that our molecules bring undeniable added value for our customers, both in design and in manufacturing.

Finally, I will conclude with Infrastructures and Industrial Policies, of which we have become a major player, whether it be investments in essential infrastructures, such as hydrogen stations or the carbon pipeline master plans of tomorrow, or whether it be proactive initiatives to stimulate industry such as the IRA (Inflation Reduction Act) in the United States or the Hydrogen Strategy in France and Europe.

These policies contribute to expanding our markets, while supporting construction, transport and manufacturing, which benefit our Industrial Merchant business.

For all these reasons, I am convinced that this world, while rich in challenges, is also full of unprecedented opportunities.

And your Group will know how to seize them with the determination, ingenuity, and audacity for which it is known.

However, seizing these opportunities will not be a given for everyone.

In particular, one condition seems more essential than ever: the ability to cooperate, to co-develop future solutions to face challenges that few will be able to tackle alone.

Now, this ability to be at the crossroads of major projects, to establish connections between actors, like an aggregator of know-how, is precisely the heart of our action and our expertise.

Air Liquide, as you have witnessed, has long been committed to this path.

This ability to co-create future solutions for and with our customers places us today in a very unique position.

Our partnerships with major economic players thus open the way to new and complementary business models, and to new solutions, useful for our customers as well as for society.

François will come back to this later.

These collaborations are set to multiply in several areas, and some have already been established, such as energy storage (geological storage of hydrogen - partnership with Geostock), electronics (molecules of the present and the future with major global electronics companies), or even "extreme" technologies, as they are sometimes characterized, ranging from space exploration to quantum computing.

In these areas, we know how to work in ecosystems and forge strategic partnerships to innovate and meet challenges alongside our partners.

The diversity of the challenges, the ability to mobilize multiple expertises, and the need to act on a larger scale justify this more collective approach.

And to illustrate my point with a concrete example, I would like to say a word about hydrogen mobility, since just a month ago, we inaugurated the brand new hydrogen station at the Pont de l’Alma, which replaces the first historic prototype station built in 2015.

It will accommodate the new fleet of vehicles from our partner Toyota, the latest generation Mirai, which will be put into service for the Paris Olympic Games this summer.

This is a fine example of an ecosystem being built in the heart of Paris, with more than 500 hydrogen taxis.

Paris will be the first city in the world to have such a fleet.

Scaling up is possible when all actors align to develop future solutions.

They are the best ones to talk about it, let's listen to them.

Ladies, Gentlemen, dear Shareholders, as you can see, there is no shortage of challenges, fueled by an unprecedented evolution of the world.

This will be a new opportunity for Air Liquide to enrich, or even reinvent, its growth model.

More than ever, we have demonstrated our capacity for resilience, and beyond that, the talent of our teams who are responding to increasingly complex and vital challenges for our societies.

We can be proud of this, and continue to write this story together, with you, our Shareholders!

You are now nearly 800,000 individual Shareholders who place your trust in us and who collectively hold 34% of Air Liquide's capital.

More than ever, it is therefore Your Group.

The very good financial performance achieved in 2023 allows the Board of Directors to propose to you this year a dividend of 3.2 euros per share for the 2023 financial year, an increase of 8.5% compared to the previous year.

This dividend will be ex-dividend on May 20, 2024 and paid on May 22, 2024.

Furthermore, a new free share attribution, at a rate of one free share for every 10 held (with a 10% increase in the number of free shares distributed for shares benefiting from the loyalty bonus), will take place on June 12, 2024.

I would like to sincerely thank you for your support and loyalty, which are our obligation.

Be assured of the full commitment of the Group's teams to continue on the path to success.

I now propose to give the floor to our Chief Executive Officer, François Jackow, who will elaborate on the implementation of our ADVANCE strategic plan.

I ask you to give him a warm welcome.

Thank you.

Thank you Benoît!

Ladies, Gentlemen,

Dear Shareholders,

Hello everyone.

As you can imagine, after this intense year, full of challenges and questions, I am particularly happy to be with you, our most loyal supporters, for this special moment that is our Annual General Meeting.

Given the quality of our results and our progress in 2023, I would like to tell you from the outset of this sharing moment how confident I am in our ability to achieve the 2025 objectives of our ADVANCE plan.

But before I present the outlook for our Group and my convictions about the meaning of our action, what are the highlights of the past year?

Halfway through the ADVANCE plan, I am proud, along with our teams, to be able to say that we are staying on course.

Starting with OUR PERFORMANCE, the first pillar of our strategy.

As Jérôme detailed, the Group delivered a very solid financial and extra-financial performance in 2023.

This once again demonstrates the strength of our model.

In this respect, the record market capitalization achieved a few weeks ago is a double recognition:

past recognition: that of the solidity of our results.

Future recognition: that of your confidence in our outlook.

All of this is, of course, a reflection of the remarkable mobilization of our teams.

I would like, with you, to acknowledge their commitment.

Thanks to them, and despite a complex external environment, we are continuing on our path.

To illustrate this, here are some concrete advances.

For example, the agreement signed with TotalEnergies to supply the Gonfreville refinery in Normandy with renewable and low-carbon hydrogen.

The hydrogen will come from our 200 MW electrolyzer, the largest ever built with PEM technology.

It will notably integrate equipment manufactured by the gigafactory co-created with Siemens Energy, thereby developing a sovereign European industrial sector.

Also in Germany, another 20 MW electrolyzer, commissioned in 2023, will accelerate the decarbonization of the Ruhr industrial basin.

In Rotterdam, we have started the construction of a CO₂ capture unit installed on one of our hydrogen plants.

This will be the first European unit integrated into a CO2 capture and storage chain.

In the United States, finally, Air Liquide was selected by the Department of Energy to be a strategic partner for 6 of the 7 regional hydrogen hubs.

No other company has had as much success in this American call for tenders.

All these projects illustrate, as Benoît said, our ability to create value by inventing solutions with our customers.

In electronics too, we are supporting the world's largest manufacturers to meet the soaring growth of digital technologies for Artificial Intelligence and to secure the supply of semiconductors.

This industry has become a global issue of sovereignty.

In the United States, the Group recently signed a contract with Globalfoundries, one of our long-standing partners.

In Taiwan, Japan, China and South Korea, we have invested in the construction of new production centers for advanced materials and ultra-pure gases for electronics.

You will notice that many of these projects signed in 2023 have a common ambition: decarbonization, which is the 2nd pillar of our strategic plan.

A year ago, right here, I presented to you our various actions to reduce our CO2 emissions.

Since then, as Jérôme said, we have for the first time in 2023 achieved an inflection in our emissions (-5%), even as we continue to grow.

In other words, in 2023, we were able to decouple growth and CO2 emissions.

This decoupling is a critical point for the transition of all industries.

It is notably the result of continuous efforts to power our plants with renewable electricity.

Beyond our own plants, our portfolio of solutions also allows us to support our customers towards carbon neutrality.

From oxy-combustion to hydrogen and carbon capture, it is the diversity of these solutions that makes us a recognized leader in Climate solutions.

Concretely, in France alone, out of the 50 sites with the highest CO2 emissions, we are involved in no less than 15 sites to reduce their emissions.

I would like to point out that this expertise allows us not only to support our historical customers but also to address new markets.

I am thinking, for example, of cement manufacturers like Holcim, Eqiom or glass manufacturers like Verallia, with whom we have signed important contracts this year to help them decarbonize their activities.

Acting as a leader also means putting technology at the service of progress, our third pillar.

Here too, 2023 was marked by major advances where our capacity for innovation made the difference.

By signing 60 "on-site" contracts for our Industrial Merchant and Electronics customers, we set a new record.

These are solutions that offer them a continuous gas supply while helping to reduce the carbon emissions associated with transporting our products.

In healthcare, we also launched a new innovative offer that frees hospitals from the management of medical gas supply.

This allows healthcare personnel to fully concentrate on patient care.

This ability to constantly invent new solutions is the Group's DNA.

Our customers tell us every day how important it is in a context of rising costs and the need for competitiveness.

I will conclude this 2023 overview with our 4th pillar, "Acting for all," which provides the framework for our Environment, Social and Governance (ESG) strategy.

This "ESG" strategy ensures that we conduct our operations in a responsible manner towards our stakeholders.

Acting for all means first and foremost taking care of our employees and our partners.

It means ensuring them a safe, inclusive work environment, or an equal level of social protection everywhere in the world.

As Jérôme pointed out, our progress in this area is concrete and quantified.

We also support the communities in which we operate, via Citizen@Work or the Access Oxygen program for example.

Finally, the Air Liquide Foundation, which has just celebrated its 15 years of action, supported 34 new projects this year.

Acting for all also means acting for you, our Shareholders, by creating value and meeting your expectations.

I would like to express our gratitude here, because you supported us in 2023 through the attribution of numerous awards including the

Golden Trophy for the best shareholder services in the CAC40

And the Responsible Investment Award

As you will have understood from the progress made in 2023, I am fully confident in our ability to achieve the objectives of our ADVANCE plan by 2025.

And even more so since, as we have mentioned, we have already practically reached our margin improvement ambition at the halfway point.

We have therefore decided to accelerate by doubling the initial ambition by 2025.

I now come to our 2024 Outlook.

In an uncertain global environment, our clients tell us they expect 2024 to continue the same trend as the end of 2023, with a possible sequential recovery over the months.

We will see if the future proves them right. In any case, be assured: with a strategy that allows us to both manage uncertainties and seize emerging opportunities, your Group is in good working order, ready to face these challenges.

This confidence comes in particular from our short and long-term growth prospects.

On the one hand, the Industrial Merchant and Healthcare activities are our two main drivers of sustainable growth, providing value-added solutions for our customers and patients.

On the other hand, good news: this growth potential is reinforced by two accelerating levers.

The Energy Transition, driven by numerous projects in Large Industries.

And Electronics, driven by the ever-increasing need for chips and memory.

Our investment portfolio is a testament to this. Indeed, our opportunities are at their highest in these two areas.

Our long-term growth ambition also serves our corporate responsibility.

This is why we have placed an ESG strategy and objectives at the heart of our ADVANCE plan.

These objectives are clear, measurable, and ambitious.

In environmental terms, the main objective is to reduce our CO2 emissions by a third by 2035. After a first inflection in 2023, 2024 will be another important step to confirm this dynamic.

In social and societal terms, we will continue our efforts in 2024 by deploying a resolutely responsible and civic-minded vision.

And I would like to add that this is even more true in a global context where the transformations of the world call for sometimes structural adaptations of our operations.

They are necessary. Necessary to enable our teams to meet the challenges they face.

It is our role as an employer to support them in these transformations, by providing them with the framework, skills and resources to carry out this transition.

Finally, in terms of governance, we apply the best standards, with rigor and transparency.

The regulatory framework is also set to increase with the upcoming arrival of the European CSRD directive.

And although this creates new reporting requirements, I am convinced that it will be a good thing for everyone in the end.

Because in an increasingly uncertain world, transparency is a guarantee of trust.

And this trust, your trust, is the foundation of our long-term success.

To conclude, I would like to share my conviction that our financial performance is never an end in itself.

It is what gives us the freedom of action, the autonomy, and the latitude to act with impact.

It is ultimately what gives us the means to do things well.

It is what allows us to contribute to progress, to give meaning to our actions for the benefit of our teams, our customers, our patients, you, our Shareholders, as well as society at large.

It is in this spirit that our partnership with Paris 2024 for the Olympic and Paralympic Games is inscribed, a perfect illustration of our contribution to collective progress.

Let's be honest: it is not really in your Group's habit to sponsor major public events.

So why did we make an exception this time?

Quite simply because this partnership seemed totally aligned with our convictions and useful in allowing us to have a contribution beyond the Paris 2024 event.

By putting our hydrogen expertise at the service of the Games' environmental ambition, we are proving that there can be concrete solutions for decarbonized mobility.

This demonstration will be a formidable lever to accelerate the sustainable decarbonization of transport, by creating lasting infrastructures and uses beyond Paris 2024. For example, the number of Hydrogen stations in the Paris region will double after the Games.

This partnership also allows us, and this is sometimes less visible, to bring to life the values of diversity and inclusion that are dear to us.

Indeed, around the world, the Group's teams have chosen to support 6 para-athletes and athletes with a view to their qualification for the Paris 2024 Games.

To illustrate this partnership, nothing beats a few images.

You can well imagine that we are particularly proud to accompany these athletes on this adventure and we, of course, wish them every success!

Rest assured, dear Shareholders, that our teams, whom I thank again, will be fully mobilized during the Games.

Just as they are mobilized every day, everywhere in the world, to serve our customers and invent the future.

Thank you.

Thank you François

I will now address the key points of the Report on Corporate Governance issued by your Board.

I suggest we start with a short video on the composition of the Board of Directors and the Committees and the work carried out throughout the year 2023.

At the end of this Meeting, the terms of office of two female Directors will expire.

These are the mandates of Kim Ann Mink and Monica de Virgiliis.

It is proposed to you in resolutions 5 and 6 to renew these two mandates for a period of 4 years.

Kim Ann Mink will thus continue to provide the Board with the benefit of her scientific expertise, her experience in the fields of research and innovation, and her managerial skills.

Monica de Virgiliis will continue to bring to the Board her skills in the fields of technology and energy, her managerial skills, and her commitment to the energy transition.

Kim Ann Mink and Monica de Virgiliis are both independent Directors.

Furthermore, for your information, Fatima Tighlaline has been reappointed by the European Works Council as a Director representing the employees for a term of 4 years.

At the end of this Annual General Meeting, subject to the approval of resolutions 5 and 6, your Board of Directors will remain unchanged with 14 members, including 6 women and 5 members of foreign nationality.

This composition reflects a diversity of profiles and experiences, expertise and cultures sought by the Board.

The composition of the Committees will also remain unchanged at the end of this Annual General Meeting, subject to the approval of the proposed resolutions concerning the renewal of mandates.

I now give the floor to Xavier Huillard, Chairman of the Remuneration Committee, who will present the resolutions relating to the compensation of corporate officers.

Ladies and Gentlemen, Shareholders,

Your Meeting is invited to vote on 6 resolutions relating to the compensation of corporate officers.

The 8th resolution concerns the compensation paid in 2023 or awarded for 2023 to your Chief Executive Officer, François Jackow.

In accordance with the policy you have approved, this compensation includes:

an annual fixed portion of 1 million 100 thousand euros

a variable portion amounting to 1 million 471 thousand and 67 euros, reflecting the quality of performance for both financial and qualitative criteria.

The financial criteria for the 2023 variable portion are met at a rate of 94.7% of the fixed portion.

Regarding the qualitative objectives, the Board considered the performance of your executive to be very good both in terms of CSR and in terms of organization and human resources.

François Jackow has thus instilled a strong dynamic for the pursuit of environmental objectives, and particularly decarbonization.

He was also particularly involved in setting up a new management team, in talent management, and in promoting a policy of diversity and inclusion.

Finally, I would like to highlight the remarkable individual performance of François Jackow, who, in an uncertain context, has steered the Group with energy and agility.

The compensation finally included an award of performance shares for a total IFRS valuation of 1 million 649 thousand 284 euros.

The 9th resolution concerns the compensation paid in 2023 or awarded for 2023 to the Chairman of the Board of Directors.

In accordance with the policy you have approved, this compensation includes an annual fixed portion of 800 thousand euros.

The Chairman does not receive any variable compensation, nor any long-term or exceptional compensation.

Through the 10th resolution, you are invited to cast a global vote on the compensation of all corporate officers, executives and non-executive directors.

Among the information provided is the annualized compensation of your executives compared to the average and median compensation of the Company's employees, and with the average compensation of the Group's employees in France.

The ratio for your executive officer is shown on the screen;

the rest of the information is available on pages 187 and 188 of the Universal Registration Document.

The compensation of non-executive directors, set in application of the 2023 policy and which falls within the envelope you decided on in 2020, appears on pages 189 to 191 of the Universal Registration Document.

You are also invited to vote on the compensation policy through resolutions 11 to 13. It is detailed on pages 203 to 211 of the Universal Registration Document.

In terms of general principles and structure, the compensation policy for the Chief Executive Officer is in line with that approved by the 2023 Annual General Meeting, with a proposed change in the level of compensation that will be presented to you in a few minutes.

The financial criteria for the annual variable portion remain based on the growth of EPS and revenue.

The personal criteria continue to include CSR and organization/human resources objectives.

The performance conditions applicable to performance shares remain linked to ROCE, TSR, and an environmental criterion aligned with the objective of reducing CO2 emissions in absolute terms in accordance with the Group's Climate objectives.

These criteria reflect the Company's strategy combining financial and extra-financial performance.

The compensation policy for François Jackow is submitted to you through the 11th resolution.

The Board wished to review the positioning of the Chief Executive Officer's compensation at mid-mandate.

After a thorough review, it appeared that the positioning of the Chief Executive Officer's compensation is now very far below the average of the benchmark of his peers' compensation.

It therefore seems necessary to propose a re-evaluation of the order of 10% of the overall compensation of the Chief Executive Officer.

François Jackow's target compensation would then remain stable until the end of his current term of office.

The Chief Executive Officer's compensation policy thus provides for:

an annual fixed compensation of 1 million 210 thousand euros,

a target variable portion equal to 120% of the fixed portion and limited to 150% of the fixed portion,

an annual LTI grant of around 1 million 815 thousand euros.

François Jackow will not receive any compensation in his capacity as a Director.

François Jackow will continue to benefit from the supplementary pension plans established by the Company.

He will continue to benefit, under the same terms as those approved by the Annual General Meeting of May 2023, from a severance payment, and from an indemnity in consideration of a non-compete undertaking.

You are invited, through the 12th resolution, to vote on the compensation policy of Benoît Potier, Chairman of the Board of Directors.

This policy is identical to that approved by the 2023 Annual General Meeting. As such, he will be awarded a fixed compensation of 800 thousand euros.

No variable, long-term or exceptional compensation, or compensation as a Director, will be awarded to him.

The compensation policy for Directors is the subject of the 13th resolution.

It is also in line with the one you approved last year.

Variable compensation is predominant and based on the attendance of each Director at meetings.

Additional compensation is paid to the Lead Director and to the Chairmen of the Committees.

The policy thus promotes the diligence and effective participation of Directors in the work of the Board and the Committees.

It is proposed to you in the 14th resolution, to vote on the increase of the total annual envelope of compensation for the Directors.

This increase takes into account in particular the new composition of the Board and the evolving regulatory context requiring an increased number of meetings of the Board or its Committees.

The compensation awarded for each Board or Committee will remain unchanged.

The amount would thus be increased from 1.3 million euros, unchanged since 2020, to 1.5 million euros.

Thank you for your attention.

I now suggest we move on to the Statutory Auditors' Reports.

Thank you, Mr. Chairman,

Ladies and Gentlemen, Shareholders,

Good morning,

On behalf of the college of Statutory Auditors, KPMG and PwC, I have the honor of reporting to you on the mission entrusted to us.

Our reports relating to the 2023 financial year are included in the notice of meeting for this annual general meeting or in the 2023 universal registration document.

We have issued 7 reports, covering:

the annual financial statements

the consolidated financial statements

regulated agreements

the consolidated extra-financial performance statement

and capital transactions.

I propose, as is customary at this Meeting, to present the essential points of these reports.

First, our report on your company's annual financial statements.

It appears on pages 307 to 309 of the Universal Registration Document.

The annual financial statements are prepared according to French accounting principles.

As part of our due diligence, we considered the valuation of equity investments as the key point of our audit.

At the end of our work, we certified without reservation or observation the annual financial statements of L'Air Liquide.

Our second report concerns the consolidated financial statements of your group and appears on pages 291 to 294 of the universal registration document.

The consolidated financial statements are prepared in accordance with the IFRS framework as adopted by the European Union.

Our work on the consolidated financial statements aims to provide reasonable assurance that the accounts do not contain any material misstatement.

Our overall audit approach is adapted to the Group's activities and various businesses as well as its organization.

It was shared, along with the conclusions of our work, with the Group's Finance Department during regular discussions.

We also reported on our work to the General Management, the Audit Committee, and the Board of Directors.

Our report includes 3 key points:

The first two concern the Large Industries business:

the qualification of contracts and the methods of revenue recognition.

the depreciation periods of production assets and the assessment of their recoverable value.
The 3rd key point relates to the impairment test of goodwill.
At the end of our work, we certified without reservation or observation the consolidated financial statements of the Group.
Our third report concerns regulated agreements (which is on page 433 of the Universal Registration Document),

We were not notified of any new agreements during the 2023 financial year.

The agreement relating to the life insurance contract for Mr. Benoît Potier, an agreement already authorized by this Meeting in previous years, continued during the past financial year.

Our fourth report covers the consolidated extra-financial performance statement.

It appears on pages 405 to 407 of the Universal Registration Document.

At the end of our work, our report does not include any particular comments.

Finally, our last three reports are on pages 434 to 436 of the Universal Registration Document.

They concern resolutions 17, 19 and 20 authorizing transactions likely to have an impact on your company's capital.

These reports do not contain any particular mention or observation.

We will prepare a supplementary report upon the use of these delegations by your Board of Directors.

Mr. Chairman, Ladies and Gentlemen, Shareholders, thank you for your attention.

We have now come to the end of the presentations. We will now move on to the question-and-answer session.

As each Shareholder has the right to the preservation of their anonymity, as well as the protection of their image, Shareholders who speak will not appear on the images broadcast on the Internet.

People who do not wish to have their name mentioned should please avoid introducing themselves at the beginning of their speech.

Before opening the discussion, I would like to remind you of the question arrangements.

During this session, you can ask your questions directly by requesting the microphone, knowing that we have also collected your questions by SMS until 4 p.m.

I would like to inform you that, in accordance with the option provided by law, the answers of the Board of Directors to the written questions before the Annual General Meeting have been published on the Company's website.

To prioritize discussions with the Shareholders present in the room, I suggest that we do not repeat them here.

Be aware that these questions, 40 in total, have mainly focused on the themes of sustainable development and climate, particularly on decarbonization but also on the subjects of water and biodiversity as well as on risks, share buybacks, governance, and of course, hydrogen.

The Board's answers are therefore available on our website, in the Annual General Meeting section.

I suggest we start right away with oral questions, while your SMS questions are being analyzed.

I will now move on to some of your questions submitted by SMS today.

These questions have been analyzed by an innovative artificial intelligence system which, via semantic analysis, allows us to have a shared vision of the most important topics for you.

I therefore propose that you now discover the Top 5 themes that interest you.

Thank you for your many questions. As time is getting on, I suggest we now close this question and answer session and proceed to the vote on the resolutions.

As you may have noticed, our registration and voting system is digital.

When you registered, you were given a tablet.

It will allow us to instantly count the different votes you will cast.

A video will show you how these tablets work and how to vote.

Your tablet is automatically activated. Hosts and hostesses are available if you have any questions.

As the quorum is still met, we can therefore proceed to the vote on the resolutions.

We will now proceed to the vote on the resolutions on the items on the agenda.

Since these resolutions are included in the documents sent to you before the meeting, I suggest we dispense with reading them in full.

I will limit myself, if you agree, to the summary that will be projected on the screen.

First of all, the resolutions of an ordinary nature:

First resolution

Approval of the parent company financial statements for the year ended December 31, 2023

After making your choice by pressing "for," "abstain," or "against," do not forget to validate your vote by pressing "OK."

I put the first resolution to the vote.

The vote is open.

Do not forget to validate your vote by pressing "OK."

I close the vote on the first resolution.

The results are displayed on the screen.

The following table:

The resolution is adopted.

Second resolution

Approval of the consolidated financial statements for the year ended December 31, 2023

The resolution is adopted.

Third resolution

Allocation of the profit for the 2023 financial year; setting of the dividend

The resolution is adopted.

Fourth resolution

Authorization granted to the Board of Directors for 18 months to allow the Company to trade in its own shares

The resolution is adopted.

5. Fifth resolution

Renewal of the term of office of Ms. Kim Ann Mink as a Director of the Company

The resolution is adopted.

Sixth resolution
Renewal of the term of office of Ms. Monica de Virgiliis as a Director of the Company
The resolution is adopted.

Seventh resolution
Special report of the Statutory Auditors on the agreements referred to in Articles L. 225-38 et seq. of the French Commercial Code
The resolution is adopted.

Eighth resolution
Approval of the components of compensation paid during or awarded for the financial year ended December 31, 2023, to Mr. François Jackow, Chief Executive Officer
The resolution is adopted.

Ninth resolution
Approval of the components of compensation paid during or awarded for the financial year ended December 31, 2023, to Mr. Benoît Potier, Chairman of the Board of Directors
The resolution is adopted.

Tenth resolution
Approval of the information relating to the compensation of corporate officers mentioned in Article L. 22-10-9 I of the French Commercial Code
The resolution is adopted.

Eleventh resolution
Approval of the compensation policy applicable to the Chief Executive Officer
The resolution is adopted. 12. Twelfth resolution
Approval of the compensation policy applicable to the Chairman of the Board of Directors
The resolution is adopted.

Thirteenth resolution
Approval of the compensation policy applicable to the Directors
The resolution is adopted.

Fourteenth resolution
Setting of the total annual compensation amount for the Directors
The resolution is adopted.

Fifteenth resolution
Appointment of the firm PriceWaterhouseCoopers Audit as Statutory Auditor in charge of certifying sustainability information
The resolution is adopted.

Sixteenth resolution
Appointment of the firm KPMG S.A. as Statutory Auditor in charge of certifying sustainability information
The resolution is adopted.

Now, the resolutions of an extraordinary nature

Seventeenth resolution

Authorization granted to the Board of Directors for 24 months to reduce the share capital by canceling treasury shares

The resolution is adopted.

Eighteenth resolution

Delegation of authority granted to the Board of Directors for 26 months to increase the share capital by incorporating premiums, reserves, profits or other items, for a maximum amount of 320 million euros

The resolution is adopted.

Nineteenth resolution

Delegation of authority granted to the Board of Directors for 26 months to carry out capital increases with cancellation of the preferential subscription right reserved for members of a company or group savings plan

The resolution is adopted.

Twentieth resolution
Delegation of authority granted to the Board of Directors for 18 months to carry out capital increases with cancellation of the preferential subscription right reserved for a category of beneficiaries
The resolution is adopted.

Twenty-first resolution
Amendment of Article 11 (Composition of the Board of Directors) of the articles of association concerning the modification of the age limit applicable to a percentage of Directors
The resolution is adopted.

Twenty-second resolution
Amendment of Article 12 (Organization and management of the Board of Directors) of the articles of association concerning the modification of the age limit of the Chairman of the Board of Directors
The resolution is adopted. The resolution of an ordinary nature

Twenty-third resolution
Powers for formalities
The resolution is adopted.

The vote is finished.

Ladies, Gentlemen, dear Shareholders, thank you for your trust.

Thank you for participating in this Annual General Meeting in the room or online.

Take care of yourselves, your families, and your loved ones.

Thank you all and see you soon.