Its New 2025 Strategic Plan Combining Financial and Extra-Financial Performance

PARIS, March 22, 2022–(BUSINESS WIRE)–Regulatory news:

Air Liquide (Paris:IA) presents ADVANCE, its new strategic plan for 2025. It places Sustainable Development at the heart of its strategy and combines financial and extra-financial performance. With a solid economic model that has proven its resilience, with its capacity for innovation and its technological know-how, the Group is particularly well positioned to pursue its growth trajectory while contributing to effectively respond to major economic, environmental and societal challenges. .

Benoit Potter, Chairman and CEO of the Air Liquide group, said: “In a world transformed by the covid epidemic, and marked by a geopolitical crisis whose dimension of humanitarian catastrophe is overwhelming, we must act today but also continue to prepare for the future. With ADVANCE, financial performance as well as environmental and societal performance go hand in hand For Air Liquide, building the future means delivering solid financial results, because it is a condition of our sustainability and our ability to invest for the future; but it is also act as a leader in the decarbonization of the industry, promote progress through technological innovation and act for all. With ADVANCE, Air Liquide is opening a new chapter in its history by inseparably linking growth and a sustainable future”.

To achieve overall performance, ADVANCE is structured around four priorities:

1 – Deliver solid financial performance

With ADVANCE, Air Liquide acts today while preparing for the future. It is taking up an ambitious challenge: maintaining its growth momentum while pursuing its CO2 emission reduction targets and investing in the markets of the future.

Three objectives define our performance ambition :

– An acceleration of sales growth reach a pace of 5 to 6% on average per year1.

– A return on capital employed (ROCE) greater than >ten % from 2023.

– A reduction of our CO2 emissions in absolute terms from around 2025.

To achieve this, we will rely on optimization of our capital resources and on improving our operating margin. The latter will improve by more than +160 bps over 4 years (2022-2025)2by acting on several levers: a dynamic pricing policy, regular efficiencies and active management of our business portfolio.

At the same time, investment decisions will be increased to a record level, reaching approximately 16 billion euros over the 2022-2025 period, half of industrial investments being dedicated to the energy transition3. On average, the annual amount of industrial decisions increases by + 45%4.

2 – Decarbonize the planet

With ADVANCE, Air Liquide confirms its leadership in the decarbonization of industry and in the emergence of a low-carbon society in which hydrogen plays a decisive role.

CO reduction2 emissions are a major challenge for major industry players and for heavy mobility. This represents a pool of opportunities for Air Liquide. To respond to this huge market and support its Large Industries customers in their decarbonization process, the Group has a wide portfolio of technological solutions and services. It includes in particular the supply of low carbon gas, CO2 capture and management, as well as solutions to transform our customers’ industrial processes. The Group is committed to decarbonizing its own assets – with the aim of starting to reduce its CO emissions2 emissions in absolute value around 2025. As part of its Sustainable Development objectives, Air Liquide aims to reduce its emissions by a third by 2035 and to achieve carbon neutrality by 2050 while supporting its customers in their decarbonization process.

3 – Technological innovation to open new markets

With ADVANCE, Air Liquide intends to contribute to the development of key sectors for the future, where it intends to strengthen its positions, relying on innovation and technology, two major assets of the Group.

the Group will focus on 5 new markets:

hydrogen mobilityand in particular heavy mobility: a market with very high potential, where we occupy a leading position and in which carbon-free hydrogen will play a key role,

electronic, where the digital revolution represents a real development opportunity and will strengthen our leadership position,

Health care, in which our value-based approach, which improves the patient’s quality of life at the best cost for the health system, responds to major societal challenges,

Industrial Merchant whose growth is driven by environmental issues and new uses, particularly digital ones.

– and high technologiesincluding space, deep cryogenics and quantum industry.

4 – Act for all

Within the framework of ADVANCE, Air Liquide wishes to integrate the point of view of its direct stakeholders, as well as that of society at large.

Concretely, this means:

– to favor employee contract and the development of their skills by implementing new ways of working in a safe, inclusive and collaborative environment,

– strengthen our customer-centric cultureto better recognize, anticipate and support their needs, and by continuing the profound transformation already underway to better serve our patients,

– always go further in the quality of the privileged relationship that we maintain with our Shareholderswith regular and attractive compensation that rewards loyalty.

– act as a committed corporate citizen concerned with the general interestwhere the Group’s contribution can make a difference, in particular by acting with communities, or for example by developing initiatives to promote access to medical oxygen.

ADVANCE IN FIGURES

PILLAR 1 – STRONG FINANCIAL PERFORMANCE

3 goals

Sales growth of 5 to 6% on average per year5.

○ One return on capital employed (ROCE) of >10 % by 2023 and beyond.

CO2 reduction of emissions in absolute value from around 2025in line with the Group’s Sustainable Development objectives.

2 catalysts

○ Capital efficiency

○ Improved operating margin by >+ 160 bp over 4 years (2022-2025)6

Investment decisions will be increased to a record level, to reach 16 billion euros over the period 2022-2025, half of industrial investments being dedicated to the energy transition7.

PILLAR 2 – DECARBONIZE THE PLANET

➢ As part of its Sustainable Development objectives presented in March 2021, Air Liquide is committed to achieving CARBON NEUTRALITY BY 2050with two key intermediate stages in 2025 and 2035:

○ to start to REDUCE your ABSOLUTE CO2 emissions around 2025

○ to achieve a 33% DECREASE in its Scope 1 & 2 CO2 emissions by 20358 compared to 2020

In this context, the Group is also maintaining its current target of reducing its carbon intensity by -30% in kg CO2/€ EBITDA9 in 2025, compared to 2015.

➢ The plan also notably provides for an acceleration of the development of hydrogen

○ at least triple its turnover to more than 6 billion euros by 2035

○ The Group will achieve this target by investing around €8 billion in the low-carbon hydrogen supply chain by 2035

○ Air Liquide aims to increase its total electrolysis capacity to 3 GW by 2030.

PILLAR 3 – FOSTERING PROGRESS THROUGH TECHNOLOGICAL INNOVATION

5 new markets: hydrogen mobility, Electronics, Health, Industry, Space

➢ About 50% of innovation expenditure dedicated to energy transition and digital

PILLAR 4 – ACTING FOR ALL

➢ 35% women among our engineers and professionals by 2025

➢ 100% of our 66,400 employees will benefit from a common base of healthcare coverage by 2025

➢ 100% of our employees will have the opportunity to engage in local initiatives to support communities by 2025

World leader in gases, technologies and services for Industry and Health, Air Liquide is present in 75 countries with approximately 66,400 employees and serves more than 3.8 million customers and patients. Oxygen, nitrogen and hydrogen are small molecules essential to life, matter and energy. They embody the scientific territory of Air Liquide and have been at the heart of the company’s activities since its creation in 1902.

Air Liquide’s ambition is to be a leader in its industry, to deliver long-term performance and to contribute to sustainable development – with a strong commitment to climate change and energy transition at the heart of its strategy. . The company’s customer-centric transformation strategy aims for profitable, steady and responsible growth over the long term. It relies on operational excellence, selective investments, open innovation and a network organization set up by the Group around the world. Thanks to the commitment and inventiveness of its employees, Air Liquide relies on the energy and environmental transition, changes in health and digitalization, and brings more value to all of its stakeholders.

Air Liquide’s turnover amounted to more than 23 billion euros in 2021. Air Liquide is listed on the Euronext Paris stock exchange (compartment A) and belongs to the CAC 40, CAC 40 ESG, EURO STOXX 50 and FTSE4Good.

1

Compound annual growth rate (CAGR) of sales on a comparable basis over the period 2021-2025

2

Sum of annual operating margin improvements in basis points, excluding energy pass-through impact

3

Industrial investment decisions over 5 million euros

4

Annual average of industrial investments over the period 2022-2025 compared to the annual average over 2016-2019

5

Compound annual growth rate (CAGR) of sales on a comparable basis over the period 2021-2025

6

Sum of annual operating margin improvements in basis points, excluding energy pass-through impact

7

Industrial investment decisions over 5 million euros

8

From 2020 Market-based emissions of 32.5 million tonnes of CO2 equivalent (Scope 1+2)

9

Compared to 2015 emissions, at the 2015 exchange rate and excluding IFRS16 for scope 1 and 2 greenhouse gas emissions

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