Air Liquide - Corporate Finance Project

Résumé du document

The Air Liquide Group, was incorporated as early as 1902, and is to-day the worldwide leader for gas products servicing industries, and medicine. Operating in 72 countries with more than 40 000 people it has achieved sales of 11801 Million in 2007, with a net income of 1123 Million. The breakdown of sales pictured clearly the international development of the company, though we will see later that Europe remains the main profit contributor. This outstanding performance results from a sound four- fold long term strategy: - External growth with the acquisition of Messer Griesheim gas activities in Germany, UK and USA in 2004; acquisition of Lurgi (engineering) in 2007 and various "niche" acquisitions in 2007 (medical sector and Asia) - Geographical expansion with the consolidation of Japanese operations (Air Liquide and BOC) in 2003 - Extension of the product portfolio (Hydrogen, medical sector) over the last 5 years as well as steady R&D activities. - Search for excellence within the organization with special attention paid to the sustainable development in the business. It has to be noticed that the Company has been selected by Storebrand (Norvegian investment fund) amongst the top companies for environmentally sustainable behavior, and in the Ethibel Sustainability Index.

Extraits

[...] Growth in absolute term is directly linked to sales development, whatever and wherever it takes place: The net earning per share none diluted is not significantly different from the diluted one as the Group has only not yet exercised options for shares for the management to consider for adjustment: Despite of missing data in the annual report the following table shows that in 2007 gas and services market segment still remains the main profit provider for the group and within this segment Europe is the major contributor which can explain why the Group is expanding its growth outside of Europe to seek for future profit: Cash Flow Statement The following table is showing that operating cash flow of current operations is largely positive to absorb the assets program; the gap in 2007 came from the acquisition of Lurgi, but even over the period the cash is still positive at 1253 Mio€. But over the period the total investment/financing program at 4335 has absorbed 77% of operating cash flow which demonstrates clearly the how capital intensive is this sector , which is also a protection against new potential newcomer. [...]

[...] The ratio is high but one can argue that retained earnings are shareholders money left to the Group for development which might have been returned to them then picture would have been different. Price earning ratio is quite difficult to compute as share price is volatile and nominal has bet divided by 2 in 2007; best estimate is as below: Business strategy 2007 Annual Report disclosed the ambition and strategy principles the Group intended to implement in the years to come. [...]

[...] Nevertheless some programs have been launched: R&D center in the USA Develop the engineering business thanks to the acquisition of Lurgi aiming to expand operations in the USA and India ; order book for engineering projects are reported to 4,7 year end 2007. Implement a new managerial structure with 4 worldwide branches: Industry Key accounts (like metallurgy), Industry, health and Electronics. Given the sound business development of the Group year after year and the sound financial data it reasonable to believe that the Group even if hurt by the general slowdown will be able to survive and develop. [...]

[...] Business Strategy Air liquide - highlights Air Liquide Group, incorporated as early as 1902, is to-day the worldwide leader for gas products servicing industries, medical. Operating in 72 countries with more than 40000 people it has achieved in sales with a net income of 1123 Mio€. Breakdown of sales as exhibited below pictured clearly the international development of the company, even as we will see later one Europe remains the main profit contributor: Over the period the key figures are as below: Over the last ten years net income (absolute and per share) grew up at an average yearly Search for excellence within the organization with a special attention paid on the sustainable development in the business. [...]

[...] Air Liquide - Corporate Finance Project Table of contents 1. Air Liquide Highlights 2. Consolidated Accounts Balanced Sheets Current Assets Long Term Assets Current Liabilities Long Term Liabilities Stockholders Equity 2.2 Consolidated Income Statement 2005 Cash Flow Statement 3. Financial Statement Analysis 3.1 Liquidity 3.2 Asset Management 3.3 Debt Management 3.4 Profitability and Market Evaluation 4. [...]