Résultats annuels 2020 : entretien avec Benoît Potier, Président-Directeur Général d'Air Liquide

I believe it was first and foremost a very strong mobilization of the group's teams in the fight against COVID-19. It was an exceptional situation, and the response of the teams was truly remarkable. In terms of performance, it was also a remarkable year that demonstrates the strength of Air Liquide's model, with very good sales stability, significant growth in operating margin, a progression in net income, and favorable positioning for future growth. It was an exceptional year combining model strength and high team engagement.

We acted on two levels: first, by continuing daily service to clients and patients in an unprecedented context, showing great team professionalism, and also by fighting the pandemic. Specifically, I salute the strong mobilization of healthcare teams in meeting medical oxygen needs, which increased 4 to 6 times in some countries, with the initiative of 10,000 respirators in 60 days completed in France, and follow-up of patients at home worldwide.

Our recipe includes the people of the group, its markets, technologies, know-how, and business model. We have a diverse client base across sectors and geography, with long-term solid contracts covering costs. We have strong client ties based on reliability and innovation, and capacity to invest and innovate, focusing on future markets.

Sales were nearly stable at 25 billion euros, with return to growth in Q4. Gas & Services, 96% of sales, saw growth in Healthcare and Electronics. Geographically, Europe held well, and developing economies like China rebounded. We achieved 441 million euros in structural cost efficiency, leading to 60 basis points margin improvement. Exceptional cost measures added 20 points, so overall operating margin increased by 80 basis points. Net income reached 2.4 billion euros, up 8.6%, with recurring net income up 4.4%. Cash flow progressed strongly, allowing high investment and debt reduction, keeping the balance sheet solid.

Sustainable development is at the heart of our strategy, with economic performance and responsible growth inseparable. For carbon intensity, we achieved a 30% reduction in five years, ahead of schedule. Safety rate hit 0.9 accidents with lost time per million hours, the lowest in 20 years. Gender diversity reached 30% women among engineers and executives, with a goal of 35% by 2025. We will present further strategy on March 23.

We achieved the NEO program objectives in 2019. The double-digit return on capital employed target is maintained but slightly delayed to 2023-2024 due to COVID-19 and sustained investments. We will return with a new program in 2022.

Air Liquide is positioned on future markets: climate and energy transition with hydrogen, biomethane, CO2 capture, and decarbonizing industrial processes, with significant investments like the world's largest PEM electrolyzer in Canada. Healthcare is a major area with strong expertise and potential. Technology, especially digital, with applications in operations and expansion into electronics, cryogenics, space, and quantum.

No, on the contrary, we had a very high investment level. By end-2020, the 12-month opportunity portfolio increased to 3.1 billion euros, with 45% dedicated to energy transition. Investment decisions reached 3 billion euros, the highest in three years. We are well-positioned for a transforming world and continued growth.

2021 has remaining uncertainties, requiring caution but also audacity and confidence. Lessons from 2020: group strength, business model, team strength, and excellent positioning on future markets. Resilience was excellent, and we are committed to climate and energy transition. Assuming localized lockdowns in H1 and recovery in H2, we are confident in increasing operating margin and achieving recurring net income growth at constant exchange rates.

We are ready for 2021. 2020 was tough for teams and clients, but we demonstrated our capabilities, which is encouraging. We are ready to continue inventing and living the future, as we have for over a century. I wish all collaborators an excellent year and thank them for their exceptional mobilization for the group's success.