Business model, sustainable performance and shareholder friendly strategy
3 reasons to invest in Air Liquide. For the industrial gases business model, which offers growth and resilience. For Air Liquide’s sustainable performance over the long term, based on a unique competitive positioning, management track record and strong focus on innovation. Finally, for its shareholder friendly strategy, delivering regular net profit and dividend growth.
Our growth potential is linked to both increasing industrial gases demand and the development of outsourcing. Our customers are diverse (the largest Air Liquide customer represents about 2% of sales), as are our end markets, which cover a vast range of industries (including chemicals, energy, food & pharmacy, construction, transportation and electronics) and healthcare.
The industrial gases business model offers growth and resilience
Other key features of the business model include the strength of our contracts (which are long-term and incorporate take-or-pay and cost indexation clauses) and the high cash flow visibility we derive from long-term contracts and rentals.
A shareholder who invested 100 euros in Air Liquide shares in registered form in 1996, reinvested his dividends in shares and benefited from the free share attributions, both eligible for the loyalty bonus, would own a portfolio amounting to 792.81 euros at December 31, 2016.
The Group’s sustainable performance is based on an experienced management team, the professionalism of the teams and unique competitive positioning. We have a team of highly experienced executives, with a mix of in-house and external experts, who are committed to Air Liquide for the long term.
More than 40% of our sales in 2015 protect life and the environment
Our management consistently achieves profitable growth while preserving a sound balance sheet. Entrepreneurial spirit is the backbone of Air Liquide. We pride ourselves on strong ethics and governance, with structured investment processes. We are deeply committed to responsibility: more than 40% of our sales in 2015 protect life and the environment.
In addition, our competitive positioning is unique. We have a wide geographic footprint, combined with a unique market-oriented organization (base and hubs) designed to capture growth. Our long-term development is delivered through targeted investments, the mutualization of proprietary assets (basin densification, pipeline networks, piggybacking, etc.). Today, this is illustrated through the most extensive pipeline networks in the sector, which gives Air Liquide a significant competitive advantage.
A wide geographic footprint, combined with a unique market-oriented organization
We hold the number one position in Industrial Merchant, Large Industries and Electronics globally, and are one of the key players in Healthcare. Our proprietary technologies are focused on the production and application of industrial gases, but we also possess unique healthcare expertise along the continuum of care across various healthcare systems, which we have built over 20 years and which now gives us a position of no. 1 in Home Healthcare in Europe. Our successful performance results largely from our commitment to constantly enhance competitiveness.
Our successful performance results largely from our commitment to constantly enhance competitiveness.
Air Liquide is proud of its strong culture of innovation. With a pioneering spirit, we constantly seek to open new markets, invent new gas applications and convert customers to outsourcing. We have an appetite for challenge and high technology (Electronics, aB&T network), which we combine with solid expertise. Our dedicated iLab and ALIAD organizations are intended to boost open innovation.
Innovation at Air Liquide focuses on benefiting our customers and society at large. Our innovation budget corresponds to 1.7% of our sales, and around 60% of this is committed to protecting life and the environment in 2014.
Air Liquide’s shareholder commitment inspires regular operating performance to deliver high shareholder returns (TSR). Air Liquide targets long-term profitable growth (over the past 30 years, the compound annual growth rate (CAGR) in net profit per share1 is +7.4%) to enable steady dividend growth (over the past 30 years, the CAGR in dividend per share1 is +8.7%) and a high distribution rate (around 50% on average). We have dedicated teams providing extensive shareholder services. Air Liquide has been succefully listed for more than 100 years. Its strong, loyal individual shareholder base represents 33% of capital at December 31, 2016.
of share capital
dividend per share (proposed at the AGM on April 3, 2017)
annual dividend growth over 30 years
Invest in a shareholder-friendly company, leader in its industry. With Air Liquide, you are choosing both resilience and growth, combined with a high and growing dividend.
You will become part of an innovative and well-managed company, which addresses world challenges, where expertise, inventiveness and entrepreneurship are creating sustainable solutions for today and tomorrow.
1 Adjusted to take into account the stock split in 2007 and free share attributions.