Air Liquide: 1st quarter 2021: return to growth -5-
As industrial and medical gases are rarely exported, the impact of currency fluctuations on activity levels and results is limited to the euro conversion effects on the financial statements of subsidiaries located outside the euro zone. The currency impact is calculated on the basis of aggregates for the period converted at the exchange rate for the previous period.
In addition, the Group passes on variations in the cost of energy (electricity and natural gas) to its customers via indexed invoicing integrated into their medium and long-term contracts. This indexation can lead to significant variations in sales (mainly in the Large Industries Branch) from one period to another depending on price fluctuations on the energy market.
An energy impact is calculated on the basis of the sales of each of the main Large Industries subsidiaries. Their consolidation makes it possible to determine the energy impact for the entire Group. The exchange rate used is the average annual exchange rate for year N-1. Thus, at the subsidiary level, the following formula provides the energy impact, calculated respectively for natural gas and electricity:
Energy impact =
Share of sales indexed to the energy year (N-1) x (Average price of energy over the year (N) – Average price of energy over the year (N-1))
This indexation effect of electricity and natural gas has no impact on current operating income.
The significant scope impact corresponds to the impact on sales of all acquisitions or disposals of significant size for the Group. These changes in the scope of consolidation are determined:
-- for acquisitions during the period, by deducting from the aggregates for the period the contribution of the acquisition, -- for acquisitions during the previous period, by deducting from the aggregates for the period the contribution of the acquisition between January 1 of the current period and the anniversary date of the acquisition, -- for disposals during the period, by deducting from the aggregates for the previous period the contribution of the disposed entity as of the anniversary date of the disposal, -- for disposals during the previous period, by deducting from the aggregates for the previous period the contribution of the disposed entity.
Comparable change in sales
Comparable changes in sales exclude the significant currency, energy and scope impacts described above. For the 1 (st) quarter of 2021, the calculations are as follows:
Q1 Q1 2021/2020 Natural Significant 2021/2020 (in millions of Q1 Published Currency gas Electricity scope Comparable euros) 2021 Growth impact impact impact impact Growth Revenue Group 5,334 -0.7% (272) 133 46 (142) +3.8% Impacts in % -5.1% +2.5% +0.8% -2.7% Gas & Services 5,103 -1.7% (266) 133 46 (142) +2.8% Impacts in % -5.1% +2.5% +0.9% -2.8%
Efficiency gains represent a lasting reduction in costs resulting from an action plan on a specific project. The efficiencies are identified and managed by project. Each project is monitored by a team made up in line with the nature of the project (purchasing, operations, human resources, etc.).
The slide show accompanying this outing is available from 9:00 a.m. (Paris time) on www.airliquide.com.
Throughout the year, follow Air Liquide on Twitter: @AirLiquideGroup.
UPCOMING EVENTS Annual General Meeting of Shareholders: May 4, 2021 Dividend Ex-coupon Date: May 17, 2021 Dividend Payout Date: May 19, 2021 2021 First Half Revenue and Results: July 29, 2021 A world leader in gases, technologies and services for Industry and Health, Air Liquide is present in 78 countries with approximately 64,500 employees and serves more than 3.8 million customers and patients. Oxygen, nitrogen and hydrogen are essential small molecules for life, matter and energy. They embody Air Liquide's scientific territory and have been at the core of the company's activities since its creation in 1902. Air Liquide's ambition is to be a leader in its industry, deliver long term performance and contribute to sustainability - with a strong commitment to climate change and energy transition at the heart of its strategy. The company's customer-centric transformation strategy aims at profitable, regular and responsible growth over the long term. It relies on operational excellence, selective investments, open innovation and a network organization implemented by the Group worldwide. Through the commitment and inventiveness of its people, Air Liquide leverages energy and environment transition, changes in healthcare and digitization, and delivers greater value to all its stakeholders. Air Liquide's revenue amounted to more than 20 billion euros in 2020. Air Liquide is listed on the Euronext Paris stock exchange (compartment A) and belongs to the CAC 40, EURO STOXX 50 and FTSE4Good indexes.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20210422006039/en/
CONTACT: Investor Relations
SOURCE: Air Liquide Group Copyright Business Wire 2021
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April 23, 2021 1:35 am ET (5:35 am GMT)