Efficiencies for the year totaled 430 million euros, exceeding the annual target of 400 million euros.
Group Operating Income Recurring (OIR) reached 4,160 million euros, marking a sharp increase of +9.8% and of +12.7% on a comparable basis, which was much higher than the comparable sales growth of +8.2%. The operating margin (OIR to revenue) stood at 17.8% as published, an improvement of +70 basis points excluding the energy impact. On a reported basis, the margin declined by -70 basis points compared to 2020, due to the strong energy costs increase, which are contractually passed through to customers, therefore having a dilutive impact on the published margin. This performance reflected the Group’s capability to quickly translate steep and rapid increase of energy costs during the 2nd half of the year into prices. This also marked the third consecutive year of significant improvement in operating margin excluding the energy impact, following the performances seen in 2019 (+70 basis points) and 2020 (+80 basis points).
Net profit (Group share) stood at 2,572 million euros in 2021, up +5.6% as published and a significant increase of +8.9% excluding the currency impact. Recurring net profit (Group share) (1) also amounted to 2,572 million euros. This represented a marked increase +13.3% excluding the currency impact, compared with recurring net profit (Group share) for 2020.
Net earnings per share, at 5.45 euros, were up +5.5% compared with 2020, in line with the increase in net profit (Group share).
Cash flow from operating activities before changes in net working capital amounted to 5,292 million euros, a marked increase of +7.3% and of +9.1% excluding the currency impact. This corresponds to a high level of 22.7% of sales and 24.5% excluding the energy impact, improving by +40 basis points compared with 2020.
Gross industrial capital expenditure amounted to 2,917 million euros compared with 2,630 million euros in 2020. This represented 12.5% of sales and 13.5% excluding the energy impact, reflecting strong project development. Financial investments amounted to 660 million euros in 2021, representing a marked increase compared with 129 million euros in 2020. These included the acquisition of Sasol’s units for approximately 480 million euros. A total of 21 acquisitions were completed in 2021. Net debt at December 31, 2021, reached 10,448 million euros.
Industrial investment decisions totaled close to 3.0 billion euros and were stable compared with 2020. Financial investment decisions reached 662 million euros in 2021 and included the acquisition of the units from Sasol for approximately 480 million euros. The 12-month portfolio of investment opportunities increased to 3.3 billion euros at the end of 2021, with new entries in the second half-year, notably related to Electronics in Asia and Large Industries. The investment backlog remained stable at the high level of 3.2 billion euros, appropriately distributed across various business sectors and geographies.
The additional contribution to sales of unit start-ups and ramp-ups totaled 345 million euros in 2021, including a 70 million euros contribution by the Sasol units in South Africa in the second half-year. The additional contribution to 2022 sales of unit start-ups and ramp-ups is expected to be between 410 million and 435 million euros. This includes approximately 135 million euros from the 16 units acquired from Sasol at the end of June 2021. Half of this amount will be recognized as part of the significant scope impact.
The return on capital employed after tax (ROCE) was 9.3% in 2021. Recurring ROCE was identical (9.3%), representing a marked improvement compared with 8.6% in 2020 and in line with the ROCE target of more than 10% in 2023 or 2024.
At the General Meeting on May 4, 2022, the payment of a dividend of 2.90 euros per share will be proposed to Shareholders for the 2021 fiscal year, representing an increase of +5.5% compared with the previous year. The ex-dividend date has been set for May 16, 2022, and the payment is scheduled for May 18, 2022. Furthermore, a free share attribution is scheduled for June 2022, based on one free share for every 10 shares held and, under the loyalty bonus, of one additionnal free share per every 100 shares held for more than 2 calendar years.
Air Liquide’s Board of Directors, which met on February 15, 2022, approved the audited financial statements for the 2021 fiscal year. The statutory Auditors issued a report with an unqualified opinion on March 4, 2022.
(1) The recurring net profit Group share corresponds to the net profit Group share excluding exceptional and significant transactions that have no impact on the operating income recurring.
