Invitation to our General Meeting 2024

Group revenue for 2023 totaled 27,608 million euros, posting comparable growth of +3.7% over 2022. The Group’s revenue as published was down -7.8%, impacted by unfavorable energy (-7.6%) and currency (-4.2%) impacts, the significant perimeter impact being slightly positive at +0.3%.

Gas & Services revenue totaled 26,360 million euros in 2023, an increase on a comparable basis of +4.2%. Revenue as published in the Gas & Services business was down -7.7%, penalized by negative energy (-8.0%) and currency (-4.2%) impacts, while the significant scope effect was slightly positive at +0.3%.

The two growth⁽¹⁾ Unless otherwise stated, all variations in revenue outlined below are on a comparable basis, excluding currency, energy (natural gas and electricity) and significant scope impacts. drivers for 2023 were the Industrial Merchant business, with sales up +8.5%, benefiting from a price impact that remained high (+8.4%) and resilient volumes, and the Healthcare business (+8.4%), bolstered by the dynamic development of Home Healthcare and the increase in the prices of medical gases in an inflationary environment. Revenue from Large Industries was down -1.8% over the year, demand stabilized at a relatively low level. Sales in Electronics increased by +2.4% in 2023, following growth of +16% in 2022, the sharp drop in demand from memory manufacturers having impacted sales from the 2^nd quarter.

• Gas & Services revenue in the Americas totaled 10,169 million euros in 2023, up by +5.1%. Large Industries sales (-2.2%) were impacted by customer turnarounds and relatively low demand. The Industrial Merchant business posted strong growth of +6.7%, boosted by a high price impact (+6.3%) and slightly positive volumes. In Healthcare, the rise in prices in proximity care in the United States and the dynamism of the business in South America contributed to the strong increase in sales (+14.2%). Electronics revenue was down by -2.8% in a context of slowing demand from memory manufacturers impacting sales of materials.
• Gas & Services revenue in Europe was up +4.2% in 2023 and totaled 9,734 million euros. Large Industries sales were slightly down (-0.9%) in a context of weak demand from customers in the Chemicals and Steel industries. Revenue from the Industrial Merchant business rose sharply, by +12.3%, driven by a price impact of +14.0% and resilient volumes excluding helium and liquefied CO₂. Healthcare sales increased by +5.8%, benefiting from the dynamism of Home Healthcare and the increase in medical gas prices in an inflationary context.
• Gas & Services revenue for the Asia Pacific region in 2023 rose by +1.8%, to total 5,410 million euros. The Large Industries business (-5.5%) was impacted by weak demand and customer turnarounds. Sales in the Industrial Merchant business were up sharply, by +9.9%, driven by a high price impact at +7.3% and by an increase in volumes, in China in particular. Growth in Electronics was +2.2% over the year: very dynamic in 1st quarter, it was then impacted by lower demand from memory manufacturers and a very high basis of comparison in 2022.
• Gas & Services revenue in the Middle East & Africa region increased by +7.0% to 1,047 million euros in 2023. All business lines grew.

Global Markets & Technologies revenue for 2023 was down by -1.0% compared to 2022, at 858 million euros. Organic growth reached +9.7%, excluding the divestitures carried out at the end of 2022. Order intake for Group projects and third-party customers amounted to 926 million euros, up +5.8% compared to 2022.

Consolidated revenue from Engineering & Construction totaled 390 million euros in 2023, down by -15.6%. Consolidated revenue excludes activities carried out as part of internal projects for Large Industries and Electronics, which are growing. Order intake amounted to 1,511 million euros for Group projects and third-party customers and hence exceeded 1 billion euros for the third consecutive year.

The Group’s operating income recurring (OIR) reached 5,068 million euros in 2023, an increase of +4.2% as published. It increased by +11.4% on a comparable basis, which is significantly higher than the comparable sales growth of +3.7%, highlighting a strong leverage effect. This performance reflects the progress of the action plan deployed around 3 levers: efficiencies, pricing management in particular in Industrial Merchant and a dynamic asset portfolio management. Hence, the efficiencies⁽²⁾ Efficiencies represent a sustainable cost reduction resulting from an action plan on a specific project. Efficiencies are identified and managed on a per project basis. Each project is followed by a team composed in alignment with the nature of the project (purchasing, operations, human resources). amounted to 466 million euros in 2023, a sharp increase of +23.2% compared with 2022 and significantly above the annual target of 400 million euros.

Excluding the energy impact, the operating margin improved very significantly by +80 basis points. Thus, the sum of improvements in the operating margin excluding energy impact in 2022 and 2023 reached +150 basis points and compares to the +160 basis points expected over the 4-year period of the ADVANCE plan. Consequently, the ambition for improvement in the margin excluding the energy impact of the ADVANCE strategic plan is raised to +320 basis points over 4 years, which reflects an acceleration. This corresponds to twice the improvement initially planned. Hence, +170 basis points of improvement are expected for the remaining 2 years of the ADVANCE plan.

Net profit (Group share) reached 3,078 million euros in 2023, showing strong growth of +11.6% as published and an increase of +21.0% excluding the currency impact. It exceeded 3 billion euros for the first time. Net profit recurring (Group share)⁽³⁾ 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. amounted to 3,320 million euros, up by +5.0%, and +13.3% excluding currency impact.

Net earnings per share, stood at 5.90 euros and were up +11.7% as published compared with 2022, in line with the increase in net profit (Group share).

Net cash flow from operating activities after changes in working capital requirement amounted to 6,263 million euros, a strong increase of +7.8% compared with 2022 and +12.8% excluding the currency impact.