L'Air Liquide S.A. Annual Report 2023

← All annual reports

FY2023 Annual Report · L'Air Liquide S.A.

Loading PDF…

Performing
for what
matters

Annual Report 2023

Access
the digital
version

About us

Manifesto

At a glance

Chairman’s statement

Business model

CEO’s statement

Strategic Report

ADVANCE, Air Liquide’s strategic plan

Delivering strong financial performance

Decarbonizing industry

Unlocking progress via technology

Acting for all

Governance & Financials

Executive Committee

Board of Directors

The Board of Directors and
its specialized committees

Financial statements

Cover: Kerwin, employee working
at Air Liquide in South Africa.

Air Liquide | Annual Report 2023

Manifesto

About us

Strategic Report

Governance & Financials

There are many
global societal
challenges that
call for immediate
– and collective –
responses.
At Air Liquide,
we are ready.

Climate, health, energy, mobility, sovereignty, the digital
revolution... There are many global societal challenges that
call for immediate – and collective – responses.

At Air Liquide, we are ready. Ready to deploy our solutions
wherever they are needed, and ready to accelerate whenever the
situation requires it. Whether it is supporting our customers on their

decarbonization journey, working alongside caregivers and patients

faced with an evolving healthcare sector, deploying hydrogen

to make mobility more sustainable, or contributing to the growth

of digital technologies, we offer concrete solutions to help society

move forward.

Our quest to provide ever more useful solutions for the world is made
possible by the ingenuity of our employees, our technological
expertise, and the infinite potential of our essential small
molecules. It is by putting these strengths to work for society
that our Group contributes, in its own way, to human, social,
and environmental progress.

It is with this vision, with the commitment of our teams and the

confidence of our stakeholders, that we are moving forward
and taking action to create a more sustainable future today.

Air Liquide | Annual Report 2023

At a glance

Air Liquide is
a world leader
in gases,
technologies
and services
for Industry
and Health.

countries

customers
and patients

67,800

employees

~800,000

individual
shareholders

€27.6bn

Group revenue

€3.1bn

Net profit
(Group share)

Air Liquide | Annual Report 2023

2023 Gas & Services revenue by geography

Americas

39%

Europe

37%

Middle East
& Africa

Asia-Pacific

20%

Our
Activities

as a percentage of
2023 Group revenue

Gas & Ser v i c e

Gas & Services

Large Industries

Industrial Merchant

Healthcare

Electronics

28%

43%

15%

Engineering
& Construction

Global Markets
& Technologies

Chairman’s statement

About us

Strategic Report

Governance & Financials

The future will bring
unprecedented
opportunities. I firmly
believe that our
Group will seize these
opportunities with
determination and
boldness.

In a world facing multiple crises, our Group has once again
demonstrated exceptional resilience. This has enabled it to
distinguish itself through remarkable performance and social
commitment. This resilience is built on the many qualities
of our business model. It relies above all on the people who
make up Air Liquide. I would like to express my immense
pride to each and every one of them.

The individual and collective contributions of our employees are
all the more admirable given the simultaneous challenges facing
our environment, and thus the Group, such as climate change,
geopolitical tensions, inflation and rising energy prices. Their
commitment has helped us move forward and, thanks to unique
innovation capacities, lead the way in many areas, from the energy
transition – particularly in the fields of hydrogen and carbon
capture – to creating value in healthcare with more personalized
solutions, and bolstering our leadership in electronics.

At the same time, we have continued to support progress in a
wide range of industrial sectors, such as chemicals, glass and
food, where our low-carbon solutions are making a difference.
We have also paved the way for new markets, such as metal
3D printing or electric batteries.

Another reason for our satisfaction is the efficient and fully
operational collaboration between the Board of Directors
and the Executive Committee since our new governance
structure was introduced in 2022. The partial replacement
of the Board of Directors through the appointment of new
independent directors strengthened our Group’s positive
momentum. With the wide-ranging expertise of its members,
the collegial nature of its deliberations, and the diverse views
and opinions it represents, the Board provides the Group’s
executive management and Executive Committee with an
enlightened and informed view of the economy, the world
and its prospects.

The future will undoubtedly be full of challenges as well
as unprecedented opportunities. I firmly believe that our
Group will seize these opportunities with determination
and boldness. Our ability to plan for the future, the
commitment of our teams around the world, our close
relationship with our customers and patients, and the full
confidence of our shareholders make me more confident
than ever. The Board of Directors and I have faith in the
Group’s ability to grow and progress every day, thanks
to the commitment of each and every employee, as we
continue to invent the future.

Benoît Potier

Chairman of the Board of Directors
of Air Liquide

Air Liquide | Annual Report 2023

ENERGY TRANSITION
TECHNOLOGIES

CARBON
CAPTURE (C)
CUSTOMER

REFINING
CUSTOMER

PETROCHEMICALS
CUSTOMER

ELECTRONICS
CUSTOMER

ADVANCED MATERIALS
PRODUCTION CENTER

Business model

A unique
model

Resources
AIR

ELECTRICITY

RENEWABLE ELECTRICITY

NATURAL GAS

BIOMETHANE

WATER

PLANTS & EQUIPMENT
FOR INDUSTRIAL GAS
PRODUCTION FOR THIRD
PARTY CUSTOMERS OR FOR
THE GROUP

Engineering &
Construction

)

CO2

)

Global M arkets
& Technologies

STEEL CUSTOMER

N2 GENERATOR

Ele

nic

Industries
Large

trial

)

Approx. 250km

alt

One of Air Liquide’s great
strengths is the resilience
of its model, which relies
notably on the diversity of
its activities serving almost
all sectors of the economy.
The strong integration
of the various activities
allows the Group to create
synergies that are not
limited to the industrial
aspect, but also include
technological expertise and
human resources as well as
financial management.

The specificity of
Air Liquide’s business
model is a pillar
on which the Group
relies to pursue its
long-term responsible
growth dynamic.

Sequestration

C O 2

HYDROGEN
SOLUTIONS FOR
TRANSPORTATION

DEEP TECH
CUSTOMER

(a) ASU: air gases production unit (air separation unit).
(b) SMR: hydrogen production unit (steam methane reformer).
(c) Carbon Capture: for hard-to-abate sectors to decarbonize their activities.
(d) On-site: small gas generator on the customer site.

Air Liquide | Annual Report 2023

FILLING
CENTER

BULK AND/OR CYLINDER
CUSTOMER

HOSPITAL

FILLING
CENTER

ON-SITE(d)
CUSTOMER

PATIENT AT HOME

FILLING
CENTER

CO2

Approx. 250km

About us

Strategic Report

Governance & Financials

Engineering
& Construction

Engineering & Construction of industrial
gas production units for the Air Liquide
group or third party customers who do
not wish to outsource their gas supply.

Large Industries

• Supply of gas in large quantities via
pipeline networks or on-site units in
industrial basins identified for their
growth and mutualization potential.

• Signature of long-term contracts.
• Mutualization of production assets to
strengthen the guarantee of supply
and optimize operational costs.

Global Markets
& Technologies

Worldwide activity for technologies (extreme
cryogenics, membranes, etc.) for deep tech
applications (aeronautics, space, quantum)
and for the energy transition (biomethane,
H2 energy, liquefaction, etc.)

from Large Industries to supply the other “gas” activities and distribute them in a given geographical area
(around 250km maximum from the production site). Mutualization of distribution assets (trucks, storage, cylinders).

Liquefaction and conditioning of gases

Industrial Merchant

Healthcare

Electronics

• Wide variety of customers

and applications.

• Accelerated development through
acquisitions of local distributors to
increase geographical coverage.

• Continuous innovation.

• Supply of medical gases to hospitals.
In Home healthcare, extension of the
•
oxygen respiratory therapy treatment
to other chronic diseases (sleep
apnea, diabetes, Alzheimer’s, etc.) to
increase density and ensure better
quality of service and contribute to the
sustainability of healthcare systems.

Combination of several activities across
the sector’s production chain:
• carrier gases (by pipeline or

on-site production).
• specialty materials.
• advanced materials (patented molecules

with very high added value).

Performing
for what matters

When it comes to fighting climate
change, helping the industry to
transform or advancing patient
care, Air Liquide can make a
real difference. In a world that is
increasingly uncertain on many
fronts, the Group’s goal is clear:
to have a positive impact.

As such, performing for what matters
typically demands acting now to
accelerate the pace of the energy
transition. And, in this field, success
will only come from a focused
collective will to work together with
customers and stakeholders, and
to deliver concrete solutions with
determination and speed.

Performing for what matters also
means improving the quality of life
of our patients and building efficient,
sustainable healthcare systems.

Air Liquide’s essential small molecules
and technologies have always
contributed to advancing industry
and society. With the commitment of
its 67,800 employees, the Group will
continue to advance further towards
a sustainable future.

Air Liquide | Annual Report 2023

CEO’s statement

“ What all our
developments
have in common
is their impact and
their contribution
to society. That’s
what our innovative
approach, which
we are constantly
developing,
is all about.”

Q&A with François Jackow

Chief Executive Officer of Air Liquide

Air Liquide | Annual Report 2023

About us

Strategic Report

Governance & Financials

Air Liquide is half-way through
its strategic plan ADVANCE.
How would you describe the
Group’s performance?

2023 was another year of solid performance
for Air Liquide! Once again, this reflects the
resilience and quality of our business model,
along with our teams’ remarkable dedication.
Despite the continued complexity of the
global environment, all indicators are positive:
sales growth increased by +3.7%(1), revenue
reached 27.61 billion euros, our operating
margin increased to reach 18.4%, recurring
net profit(2) rose by +13.3%(3) and investment
decisions reached their highest level,
amounting to 4.3 billion euros in 2023.

This gives us confidence in our ADVANCE
strategy to such an extent that we have
decided to go further by doubling our initial
ambition for improving the Group’s operating
margin. In two years, we have almost
achieved our initial ambition, which was an
increase in operating margin of +160 basis
points. Consequently, we are going to double
our ambition for the duration of the plan to
reach +320 basis points (that is 3.20%) in
four years. We are also maintaining our other
financial objectives for sales growth(1) and
return on capital employed, along with our
target in terms of investment decisions.

Likewise, from an extra-financial standpoint,
thanks to our numerous decarbonization
initiatives, we are confident in our ability
to combine growth in our business with a
reduction in our CO2 emissions in absolute
value from 2025.

In short, I would say that the Group’s
performance in 2023 confirms the relevance
of our ADVANCE strategic plan and our
teams’ ability to provide our customers with
specific solutions with high added value to
address their challenges, both now and in
the future.

The decarbonization of industry is
a hot topic right now and you have
announced a number of related
projects. How would you assess
the Group’s action in this area?

Decarbonization, both ours and that of our
customers, is at the heart of our strategy.
I strongly believe that the Group can be a
driving force in the creation of a low-carbon
industry. This challenge is now a global
priority and we are having a tangible impact,
thanks to our portfolio of technological
solutions and services. Our partnerships with
industry giants in Europe, where projects are
rapidly gaining momentum, are proof of this.

For instance, our agreement with
TotalEnergies to provide their Gonfreville
refinery in Normandy with renewable and
low-carbon hydrogen is an example of the
development of a sustainable hydrogen
industry to decarbonize the entire industrial
basin in Normandy. The renewable hydrogen
that will be supplied will be produced by our
PEM(4) electrolyzer, Air Liquide Normand’Hy,
the largest electrolyzer ever built, and
will feature latest-generation equipment
manufactured by our Berlin gigafactory,
a joint venture with Siemens Energy. In
the Netherlands, we are involved in major
electrolyzer projects that are supported
by the government and we are also going
to develop a large-scale CO2 capture unit
on our hydrogen plant in Rotterdam.
These developments will make a significant
contribution to the decarbonization of industry
in the Netherlands and neighboring countries.

Things are also gathering pace in the
United States. We are thrilled to have been
chosen by the American Department of
Energy as a strategic partner of six out of
seven regional hydrogen hubs. Our solutions
are making a difference in Asia as well. In
Japan, our autothermal reforming technology
has been chosen for a pilot project for
the large-scale production of low-carbon
hydrogen and ammonia.

We are also working with ENEOS, Japan’s
leading energy company, to develop the low-
carbon hydrogen market; this partnership
will cover the entire hydrogen value chain.

Although these projects underline hydrogen’s
key role in decarbonizing the industry,
the solution will lie in a combination of
different options. As such, we use other
technologies to help our customers on their
decarbonization journeys, including oxy-
combustion, biomethane and carbon capture
with our CryocapTM solution. Indeed, Holcim
has chosen this technology; we are going to
work with the company to decarbonize their
new cement plant in Belgium.

We owe this major and tangible progress to
the efficiency of our technologies, our ability
to devise and provide innovative solutions
for our customers and our ability to bring
together key players for large-scale, forward-
looking projects. Because today, it’s clear that
we must work with industry as a whole and
with the support of government authorities
to collectively develop integrated ecosystems
to accelerate the energy transition.

(1) Change excluding the currency, energy (natural gas and electricity) and significant scope impacts.
(2) Recurring net profit excluding exceptional and significant transactions that do not impact operating income recurring.
(3) Excluding the impact of foreign exchange rates.
(4) Proton Exchange Membrane.

Air Liquide | Annual Report 2023

Industry’s decarbonization is at the heart of
our strategy. I am particularly proud of the
Group’s role as a driving force and the progress
we have made toward a low-carbon industry.

In a few months, France will
welcome the world for the
Olympic and Paralympic Games
Paris 2024. Air Liquide is an
Official Supporter of this event for
hydrogen. What is the reasoning
behind this partnership?

In addition to the similarities between our
values and those of Paris 2024, this is a
particularly significant partnership because
we can draw on our expertise to provide the
event with decarbonized mobility solutions.
We are going to provide hydrogen of
renewable origin to power several hundred
Toyota Mirai cars that will make up part of
the Games’ official fleet. This is a real source
of pride for me and our teams because these
cars will contribute to a reduction in carbon
emissions during this major sporting event.
I firmly believe that this real-world use of
hydrogen for mobility at an event of this

magnitude will be a powerful force for
accelerating the sustainable decarbonization
of transport, creating long-term infrastructure
and uses beyond Paris 2024. Acting as
a champion of climate solutions means
providing support for the ambitious
environmental objectives of major events like
the Olympic and Paralympic Games Paris
2024. I would like to commend the work of
our teams, who are committed to ensuring
that this partnership is a collective victory!

Lastly, this partnership is about more than
just climate – it is also about embodying
the values of diversity and inclusion that
are so important to us. As such, the Group
is supporting at least 6 athletes and
para-athletes in their bid to qualify for the
Olympic and Paralympic Games Paris 2024.
We are very proud to support them and their
endeavors and we wish them every success!

At the inauguration of the gigawatt electrolyzer factory,
a joint venture created by Air Liquide and Siemens Energy,
in Berlin, in the presence of German Chancellor Olaf
Scholz and French Industry Minister Roland Lescure.

Innovation is at the heart of the
ADVANCE program. What progress
has been made in this field?

Innovation has always been part of our DNA,
from technology to the way we act and
serve our customers. In practice, this has
led to significant progress in growth markets
this year, including semiconductors, with
investments in new manufacturing centers
for advanced materials in Taiwan and South
Korea. These new production capacities will
support the acceleration in the manufacture
of high-tech chips. These chips are vital for
next-generation electronics applications in
artificial intelligence, the automotive industry
and cloud computing(5).

2023 also saw many innovations in terms
of mobility. For instance, we launched new
joint ventures with Groupe ADP and with
TotalEnergies that will help accelerate the
development of hydrogen, from airport
infrastructure to heavy vehicles. But I am also
thinking of our industrial customers, be they

traditional or positioned in new markets,
such as the food, glass and metal industries.
We supply them with innovative solutions
with a reduced carbon footprint that enable
them to reduce their CO2 emissions.

Lastly, I would like to mention the healthcare
sector, in which we continue to develop
our solutions to improve the day-to-day
lives of healthcare professionals. We have
launched a new service so that hospitals
no longer need to manage their supply
of medical gases. The aim is to enable
staff to focus more on patient care.
This approach was inspired by the
personalized care pathways for patients
treated at home that was launched in 2021
and that we are continuing to develop.

What all these developments have
in common is their impact and their
contribution to society. That is what
our innovative approach, which we are
constantly developing, is all about.

(5) Cloud computing involves transferring computer data to remote servers.

Air Liquide | Annual Report 2023

About us

Strategic Report

Governance & Financials

Official Hydrogen
Supporter of
Paris 2024

500 hydrogen-powered Toyota Mirai will be
driven during the Olympic and Paralympic
Games Paris 2024. Part of the official fleet,
these cars will transport officials throughout
the event.

As part of its partnership with Paris 2024,
Air Liquide will supply these cars with
hydrogen from renewable sources, produced
from water electrolysis or biomethane with
guarantees of origin.

Reflecting its ambition to organize “more
sustainable Games”, these hydrogen-
powered cars will contribute to Paris 2024’s
objective of reducing this edition’s carbon
emissions in comparison to previous Games.

Given that transport accounts for a
quarter(1) of global CO2 emissions, the climate
emergency requires a range of solutions,
including hydrogen. It offers real advantages,
including range and minimal charging times,
for intensive transport such as the vehicles
in Paris 2024’s official fleet that will be in
continuous use.

For Air Liquide, the real-world use of
hydrogen for mobility at an event of this
magnitude will be a powerful force for
accelerating hydrogen for mobility, creating
long-term infrastructure and uses beyond
the Paris 2024 Games.

What is your outlook for 2024?

The world faces many challenges.
From sovereignty to security, from climate
change to energy independence and
demographic shifts, we must contend
with this new, uncertain world, just as our
customers are doing. As is the case with
any challenge, there are opportunities.
Indeed, there have never been so many
opportunities and we must seize them.
We must work together to perform better
and ensure we have the means to respond
effectively to the major challenges of the
energy transition, changing healthcare
systems and global competition in
high-tech development. As the Group’s
expertise has never been more pertinent
to address global challenges, this is also
a unique opportunity to improve existing
services and offerings and develop
new ones, as we always have, so we
can provide the world with tangible
and practical solutions. Although the
short-term future will undoubtedly have
its share of surprises, I feel confident
and energized because I know that
I can count on truly extraordinary teams.
They and I are more committed than
ever to serve our customers and patients
and, in so doing, provide useful and
tangible solutions to create a more
sustainable world.

(1) Source: Data lab, French Ministry of Ecological Transition.

Air Liquide | Annual Report 2023

ADVANCE,
our strategic
plan towards a
comprehensive
performance

For Air Liquide, building the future means
delivering strong financial performance which
prepares the future, acting as a leader in the
decarbonization of industry, unlocking progress
through technological innovation and acting
for all.

With this vision in mind, the Group launched in 2022, ADVANCE its strategic plan for 2025,
which intricately links financial and extra-financial performance. This plan firmly positions
the Group on the path toward comprehensive performance.

Faced with the numerous and complex challenges of the world, Air Liquide is acting today
while preparing the future.

With its proven resilient business model, its innovation capacity and its technological
expertise, the Group is ideally positioned at the heart of the markets of the future to continue
its growth dynamic by working to meet the major challenges facing our world, driven by the
desire to make a positive impact.

Air Liquide | Annual Report 2023

About us

Strategic Report

Governance & Financials

ADVANCE is built around these four
pillars where Air Liquide’s action
is more relevant than ever.

Delivering strong financial
performance

Unlocking progress
via technology

With ADVANCE, Air Liquide is
taking action today while preparing
the future. The Group is rising
up to an ambitious challenge:
maintaining its growth dynamic
and improving its profitability
while meeting its commitments to
reduce CO2 emissions and investing
in the markets of the future.

Decarbonizing industry

ADVANCE will enable Air Liquide to
consolidate its leading role in the
decarbonization of industry and
the advent of a low-carbon society
in which hydrogen notably plays a
decisive role.

Innovation and technology
are two of Air Liquide’s major
strengths that have always
enabled the Group to play a
pioneering role. Today, these
strengths make it possible for
the Group to contribute to the
development of key sectors of
the future, where it intends to
strengthen its positions through
the ADVANCE plan.

Acting for all

As a civic-minded company,
Air Liquide strives to ensure
that everything it does is in the
interests of its stakeholders
and, beyond that, of society
as a whole.

Air Liquide | Annual Report 2023

Delivering
strong
financial
performance

Air Liquide | Annual Report 2023

Air Liquide is taking action today
and preparing the future to rise
up to an ambitious challenge:
delivering strong financial
performance, by maintaining its
growth dynamic and improving
its profitability while promoting
a greener industry, by meeting
its commitments to reduce CO2
emissions and investing in the
markets of the future.

To achieve these goals, the Group is
acting on several levers: a dynamic pricing
policy, regular efficiency gains and active
management of its business portfolio.

In order to continue inventing the future,
Air Liquide is raising its investments to
a record level. This momentum is strong in
the fields of energy transition, particularly
in the carbon capture and hydrogen
technologies, and electronics. Furthermore,
these promising markets require a high
degree of investment selectivity. The need
to reduce CO2 emissions is now an integral
part of any investment decision.

About us

Strategic Report

Governance & Financials

Our 2025 objectives and ambitions

Our results

+5% to +6%

Average annual sales growth(1)

>10%

Return on capital employed
(ROCE) from 2023

+4% +7%

Annual sales growth(2)
in 2023

in 2022

10.6%

Recurring ROCE(3)

Reduction of CO2 emissions(4)
in absolute value from 2025

On track

€16bn
Investment decisions over
the 2022-2025 period(5)

€8.3bn
Industrial investment decisions
over 2022-2023

>+160bps
Increase of operating margin
between 2022 and 2025(6)

+150bps
Increase of operating margin
over the 2022-2023 period(6)

New:

Having practically reached our margin target halfway through ADVANCE
we now aim for a +320 bps increase, over the duration of the plan.

(1) Compound Annual Growth Rate (CAGR) of sales on a comparable basis over the

2021-2025 period.

(4) Scopes 1 and 2.
(5) Cumulated industrial and financial investments decisions over 4 years

(2) Comparable growth vs previous year. Change excluding the currency, energy

2022-2025.

(natural gas and electricity) and significant scope impacts.

(6) Sum of annual operating margin improvements in basis points, excluding energy

(3) Based on the recurring net profit.

passthrough impact.

Air Liquide | Annual Report 2023

Pillar 1: Delivering strong financial performance

Investing in the energy transition,
investing in the future

Vision

The Group’s consistent financial performance
provides the resources it needs to finance
large-scale projects and realize its long-term
vision. This vision includes the transition to
low-carbon industry, both in terms of its
own activities and in terms of support for
its industrial customers.

Industry, particularly heavy industry, is a major
emitter of carbon dioxide, accounting for around
20% of global CO2 emissions. To achieve carbon
neutrality, there must therefore be a drastic and
rapid reduction of these emissions. To contribute
to this vital decarbonization, Air Liquide allocates
nearly half of its investment decisions to key
projects that will contribute to the fight against
global warming. And because it strongly believes
in the power of collaboration, Air Liquide is
establishing various partnerships in a wide range
of sectors, particularly those with the highest
emissions and that are hardest to abate. Working
alongside its customers, the Group is investing
significant resources to accelerate the transition
to a low-carbon industry.

Air Liquide | Annual Report 2023

Action

As part of its ADVANCE strategic plan,
Air Liquide is committed to supporting its
industrial customers in decarbonizing their
activities through a portfolio of technological
solutions. 2023 saw a significant increase
in this dynamic with strategic investments
and key partnerships. For instance, the
Group signed an agreement to decarbonize
the Belgian plant of the Swiss company
Holcim, one of the world’s leading cement
manufacturers, using its proprietary
technology, CryocapTM. Developed by
Air Liquide, the CryocapTM process captures
CO2 by liquefying it through cryogenics.
This technology will enable the cement plant
to reduce its CO2 emissions by 1.1 million
tonnes every year.

Using the same technology, Air Liquide will
help transform one of EQIOM’s cement plants
in France into Europe’s first carbon-neutral
cement plant by 2028. The project, known as
K6, has received funding of 150 million euros
from the European Innovation Fund and aims
to capture nearly 8 million tonnes of CO2
during the first 10 years of operation.

This CryocapTM technology was used for
the first time in 2015 in Port-Jérôme in
Normandy, on the Group’s largest hydrogen
production site in France.

major projects that will
support the energy
transition are being
developed by the
Group in Europe

like this are also being developed by the
Group, particularly in Europe. This extensive
portfolio makes Air Liquide a pioneer and
a leader in the energy transition.

When it comes to large-scale decarbonized
hydrogen, Air Liquide has already
demonstrated its industrial capabilities in
operating electrolyzers for the last 3 years
in Bécancour, Canada. With a capacity
of 20 megawatts to produce 8 tonnes of
hydrogen every day, this is enough to power
2,000 cars, 16,000 forklift trucks, 275 buses
or 230 large trucks!

This electrolyzer is at the heart of a new
low-carbon gas production platform that is
being developed by Air Liquide in Quebec
to produce renewable hydrogen, oxygen,
nitrogen and argon. In addition to the
existing electrolyzer, the investment project
of more than 140 million euros will include
a new renewable oxygen and nitrogen
production unit and significant liquid storage
capacity, connected by a pipeline network
to better serve local customers. This new
infrastructure is part of a wider process to
decarbonize Bécancour’s industrial zone and
port, making it a unique place to produce
renewable industrial gases and thereby
develop offerings with high added value for
our customers who are committed to the
energy transition.

Air Liquide’s plans for hydrogen on the
other side of the Atlantic do not stop there!
The Group is now a partner of six regional

About us

Strategic Report

Governance & Financials

“We are proactively stepping up our efforts
to develop a more sustainable industry.
Our technologies, particularly our proprietary
carbon-capture solution CryocapTM and
our electrolyzers for low-carbon hydrogen
production, as well as our many collaborations
and partnerships with customers position us
as a leading player when it comes to the
major challenge of the energy transition.”

Chris Clark
Vice President of Large Industries
at Air Liquide

hydrogen hubs created in 2023 to develop
low-carbon hydrogen on a large scale in
the United States (see page 25).

In addition to these investments in projects
for carbon capture and hydrogen production
through electrolysis, the Group is pursuing
several other strategies to accelerate the
energy transition. For instance, it is working
with KBR, the world leader in ammonia
technology, to provide solutions to produce
low-carbon ammonia by using the autothermal
reforming (ATR) process developed by
Air Liquide. This technology, in which the
Group is a world leader, is one of the most
promising solutions for the large-scale
production of low-carbon hydrogen; it is then
combined with nitrogen to produce low-

carbon ammonia. The solutions provided in
collaboration with KBR will also contribute
to the development of a global low-carbon
hydrogen market because hydrogen, when
transformed into ammonia, can easily be
transported over long distances (see page 23).

Lastly, the Group is supporting sustainable
mobility by contributing to the development
of hydrogen ecosystems with major players
including TotalEnergies, Lotte, Eneos and
Trillium Energy Solutions (see page 34). The
aim is to accelerate the adoption of hydrogen,
particularly for heavy mobility.

All these strategic investments underline
Air Liquide’s proactive approach to the
creation of a low-carbon society.

Air Liquide | Annual Report 2023

Close to this site and with the support of
the French government, Air Liquide is now
building a world-scale PEM (proton exchange
membrane) electrolyzer, with a capacity of
200 megawatts, as part of the Normand’Hy
project. The objective is to produce up to
28,000 tonnes of decarbonized hydrogen per
year, beginning in 2026. This unique facility
will be equipped with the latest-generation
PEM electrolysis modules, produced by the
new gigafactory operated by Air Liquide
and Siemens Energy in Berlin, Germany
(see page 24).

Half of the hydrogen produced by this
electrolyzer will be used by the TotalEnergies
refinery located in the same industrial basin.
At the same time, TotalEnergies will provide
renewable electricity to cover half the energy
needs of Air Liquide’s Normand’Hy. This is
an ambitious project: in addition to avoiding
annual emissions of 250,000 tonnes of CO2,
this will be the first low-carbon hydrogen
supply chain in Europe. Many other projects

Pillar 1: Delivering strong financial performance

Strengthening our position
in Electronics

Vision

The rapid development of digital technologies
has never had so much momentum. Artificial
intelligence, 5G and smart devices (Internet
of Things) are revolutionizing science, industry
and our everyday lives. Semiconductors are at
the heart of this revolution; their shortage during
the Covid-19 pandemic almost paralyzed several
industrial sectors. Their large-scale and secure
supply has therefore become a global and
geostrategic issue. In response, manufacturers
are investing the equivalent of 100 billion
dollars every year(1) in this sector. The market
is estimated to be worth 1,000 billion
dollars by 2030(2), double the current market
valuation. This growth is being driven by the
introduction of major government plans that
are specifically focused on semiconductors,
such as the Chips Acts in the United States
and Europe. Air Liquide is contributing to this
powerful dynamic by providing the largest
semiconductor manufacturers with support
for their development, both technological
and geographic, with the ultimate goal of
consolidating its leadership position.

Air Liquide | Annual Report 2023

Action

To strengthen its position in the global
market of molecules and services for the
electronics industry, Air Liquide has increased
its investments in Asia, where it has been
the leading supplier of industrial gases
for the electronics industry for 30 years.
Hundreds of millions of dollars were
invested in the construction of two advanced
materials production centers to support the
development of Taiwanese and South Korean
semiconductor giants. By establishing
these production centers in the immediate
vicinity of its customers’ plants, Air Liquide
is improving competitiveness and the
collaborative development and production
of new cutting-edge molecules that are vital
to the manufacture of more complex, more
compact and more powerful semiconductors.

35%

of projects in investment
backlog are in the
Electronics sector

(1) SEMI.
(2) SEMI FORECAST, Semicon Japan December 2023.

About us

Strategic Report

Governance & Financials

“Our investments confirm our leadership in
the semiconductor sector. This leading position
reflects our ability to understand the requirements
of the sector’s major players and the quality of the
service we provide. These investments are also
proof of our ability to provide innovative solutions
with a lower environmental impact that meet
the highest standards of purity and reliability.”

Guillaume Cottet
Vice President of Electronics at Air Liquide

This approach ensures continuity of supply
while fostering innovation through constant
communication. At the same time, the
Group and its customers are reducing the
environmental impact of their plants by
limiting the number of kilometers covered
during transport. This approach is welcomed
by our customers, who are no longer
dependent on global supply chains.

In addition to its investments in Taiwan
and South Korea, Air Liquide has recently
opened a new plant in Japan that supplies
ultra-pure nitrogen to guarantee the
impurity-free environment that is required for

semiconductor manufacturing. This plant will
prevent annual emissions of 20,000 tonnes of
CO2, which is equivalent to the carbon dioxide
emitted by the electricity consumption of
6,000 Japanese households. The Group has
also signed a long-term contract with the
Chinese company BOE Technology Group.
It specializes in the manufacture of LCD
flat-screens and Air Liquide has supplied the
company with industrial gases for 20 years.
This new contract underlines this customer’s
trust in the Group’s expertise.

Air Liquide is also collaborating with some
of the largest semiconductor manufacturers

in the world. The Group recently signed
a contract extension with one of its long-
standing partners, Globalfoundries, for
sites in the United States (Malta, New
York) and Singapore; Air Liquide currently
supplies these sites with ultra-pure nitrogen
for semiconductor manufacturing. The
Air Liquide plants in Malta will be modernized
and a new production unit will be constructed
in Singapore. The goal is to increase the
energy efficiency of these facilities. For
example, the Singapore unit will save energy
equivalent to the total energy consumption of
more than 3,650 Singaporean households.

By strengthening its presence in all major
semiconductor production centers,
Air Liquide is positioning itself as a global
strategic partner in the development of
ultra-high-tech semiconductors. These
semiconductors are vital for the development
of increasingly sophisticated electronic
devices in a wide range of fields, from
artificial intelligence and electric vehicles
to cloud computing(3) and connected
solutions for smart cities!

(3) Cloud computing involves transferring computer data to remote servers.

Air Liquide | Annual Report 2023

Decarbonizing
industry

Air Liquide | Annual Report 2023

Reducing CO2 emissions has
become a major challenge for
key players in industry and
heavy mobility. Air Liquide
has a comprehensive portfolio
of technology and service
solutions to support its customers’
decarbonization efforts around
the world, from the supply of
low-carbon industrial gases
to CO2 capture and industrial
process transformation.

Air Liquide thus provides its industrial
customers with tailor-made solutions
to support their decarbonization
efforts and relies notably on a strategy
centered on industrial basins to develop
operational synergies.

And with ADVANCE, the Group is thus
committed to decarbonizing its own
operations; the objective being to start
reducing its CO2 emissions in absolute
terms around 2025.

About us

Strategic Report

Governance & Financials

Our objectives and ambitions

Our progress

-33%

Reduction in absolute terms of the
Group’s Scope 1 and 2 CO2 emissions
by 2035 compared to 2020 baseline

On track

~50%

of industrial investment
decisions will be dedicated
to the energy transition(1)

On track

75%

74%

of the Group’s 50 largest customers
committed to carbon neutrality
(scope 3 commitment) by 2025

of the Group’s 50 largest
customers stated a carbon
neutrality commitment

Carbon neutrality
By 2050, reaching carbon neutrality
across the entire value chain

(1) Industrial investment decisions above €5 million over the 2022-2025 period.

Air Liquide | Annual Report 2023

Pillar 2: Decarbonizing industry

Renewable electricity:
boosting power supply

Vision

Using renewable electricity to produce low-carbon
industrial and medical gases is part of Air Liquide’s
commitment to achieving carbon neutrality by 2050.
While the production of oxygen and nitrogen generates
no CO2 emissions, it does require large quantities
of electricity, which needs to be decarbonized.
The challenge is to secure long-term supply from
renewable energy suppliers. Air Liquide relies on Power
Purchase Agreements (PPAs) – contracts which can run
for up to 25 years – providing the Group with long-term
renewable electricity. 2023 saw considerable development
in this area, with Air Liquide nearly doubling its supply
reaching 2,600 GWh of renewable electricity per year for
the coming years in many different countries, 60% of
which is secured through PPAs.

Air Liquide | Annual Report 2023

“Many players are looking to source renewable
electricity, making the PPA(1) market very
tight. Our long-term commitments and solid
business model make Air Liquide a preferred
customer for renewable energy suppliers.”

Raphaëlle Imbault
Director of Energy
Management at Air Liquide

2,600
GWh

per year of renewable
electricity secured
in 2023

Action

In South Africa, where the Group operates
the world’s largest oxygen production site at
Secunda, Air Liquide has teamed up with its
customer, Sasol, a leading global chemicals
group, to source renewable electricity. Several
PPAs were signed since 2022 with various local
energy suppliers, now representing 580 MW
of renewable electricity. This newly installed
capacity will contribute to Air Liquide’s objective
of reducing CO2 emissions linked to oxygen
production at Secunda by 30 to 40% by 2031.

In Europe, where Air Liquide is stepping up plans
to decarbonize its production units, the Group
has once again signed a PPA with Vattenfall,
one of Europe’s leading electricity producers
and distributors, for an installed capacity
of 115 MW. This second PPA in Benelux
significantly strengthens Air Liquide’s supply
of renewable electricity in the region. Concluded

(1) Power Purchase Agreements.

for a 15-year period starting in 2026, it will bring
Air Liquide’s total installed renewable electricity
generation capacity in Benelux to around 270
MW. This represents over 70% of the Group’s
current electricity consumption in the region.

In China, the Group signed its first long term PPA
for the supply of renewable electricity from solar
farms with a total capacity of 200 MW. This
amount secured by Air Liquide for the production
of industrial and medical gases in China is
equivalent to the electricity consumption of
300,000 Chinese households.

These new PPAs mark an important step in
Air Liquide’s drive to secure renewable energy.
The Group will be able to offer low-carbon
molecules and solutions to its customers,
supporting them in their decarbonization efforts.

Cutting-edge technologies
for low-carbon production

Vision

Air Liquide is firmly committed to
decarbonizing its own production methods,
with the aim of significantly lowering its
CO2 emissions by 2025 and reducing them
by a third by 2035. The Group is therefore
developing solutions to improve the
industrial and energy efficiency of its Air
Separation Units (ASUs) and its low-carbon
hydrogen production processes.

About us

Strategic Report

Governance & Financials

“I firmly believe that technology will play a key
role in the decarbonization of industry and mobility.
That’s why we keep developing solutions that
address our customers’ environmental challenges as
well as our own climate objectives. Not only do we
have the right technologies, but our teams have the
skills and the execution capabilities to deliver them.”

Philippe Merino
Group Vice President supervising
Engineering & Construction at Air Liquide

Action

More efficient Air Separation Units
In the Tianjin basin in China, Air Liquide has operated
four ASUs supplying industrial gases to the healthcare
and industrial sectors for more than 20 years. In 2023,
the Group invested 60 million euros in a transformation
project to reduce the carbon footprint of two of these
ASUs, as part of a long-term contract with Tianjin Bohua
Yongli Chemical Industry Co., Ltd. The aim is to adapt
these plants to run on electricity instead of steam,
thereby reducing annual CO2 emissions by 370,000
tonnes. This is equivalent to the electricity-related
emissions of more than one million Chinese households.

Toward very large-scale, low-carbon
hydrogen production
Air Liquide has also established itself as a leader in
autothermal reforming (ATR) technology, an efficient
large-scale solution to produce low-carbon hydrogen,
with 70 years of experience. When ATR is combined
with carbon capture technology, it can achieve higher
energy efficiency with lower investments and a simplified

production process to facilitate the capture of up to 99%
of CO2 emissions in highly integrated industrial facilities.
The Group will use this technology as part of a pilot
project with INPEX Corporation, a Japanese energy
company, to produce low-carbon hydrogen and ammonia.

At the same time, Air Liquide is working with KBR
to develop technological solutions integrating the
ATR process to produce low-carbon ammonia and
low-carbon hydrogen. The solutions provided will
contribute to the development of a global low-carbon
hydrogen market as hydrogen, when transformed into
ammonia, can be easily transported over long distances.

In addition, the Group is building an ammonia cracking
pilot unit in Antwerp in Belgium, using innovative
technology to transform ammonia into hydrogen with
a reduced environmental impact. This initiative will
make it easier to transport hydrogen and contribute
to the development of hydrogen as a key enabler
of the energy transition.

Air Liquide | Annual Report 2023

Pillar 2: Decarbonizing industry

Renewable hydrogen:
a gigafactory of electrolyzers
to scale up

“This gigafactory is a decisive step forward
in offering large volumes of renewable
hydrogen to the industrial and mobility
sectors. Production units equipped with PEM
electrolyzers will contribute to decarbonizing
these markets. The gigafactory also gives
Air Liquide and Siemens Energy a significant
advantage by ensuring privileged access to
crucial equipment for successfully scaling up
the production of renewable hydrogen.”

Marie-Khuny Khy
Director of Electrolysis Product Line at Air Liquide

20%

share of hydrogen in
the world energy mix
by 2050(2)

Vision

A hydrogen future depends on competitive,
large-scale production of low-carbon hydrogen –
and, therefore, a mass supply of electrolyzers:
a production technology that uses electricity to
separate purified water molecules (H2O) in order
to separate the hydrogen from the oxygen.

Air Liquide is playing a leading role in the entirely
new industrial and economic ecosystem needed
to drive the future of hydrogen. We are partnering
with major industrial and technology enterprises,
including a joint venture with Siemens Energy. And
these are not merely plans: 2023 ended with the
inauguration of a world-first hydrogen gigafactory
to produce large-scale PEM(1) electrolyzers.

Air Liquide | Annual Report 2023

Action

On November 8, 2023, production began at
the new Air Liquide Siemens Energy Joint
Venture gigafactory in Berlin. The cutting-edge
2,000 m² plant, highly automated with robotics,
is producing electrolysis stacks that use proton
exchange membrane (PEM) technology.

Initial manufacturing capacity is 1 GW per year,
with ramp-up plans targeting at least 3 GW per
year of output by 2025. In terms of hydrogen
production capacity, this would translate into
1,200 tonnes per day more of hydrogen.

The project also builds on real-world knowledge
from our operations to continuously hone
and optimize the potential of mass-scale
electrolyzers.

(1) Proton Exchange Membrane.
(2) Hydrogen Council.

This strategic joint venture will equip a portfolio
of current hydrogen projects, including notably:
• Our 20 MW hydrogen production unit in
Oberhausen, Germany, contributing to
accelerate the decarbonization of the
Rhine-Ruhr industrial basin.

•

• The Normand’Hy project in Port-Jérôme,
France, with a capacity of 200 MW – the
largest PEM electrolyzer under construction,
which will integrate equipment produced
in the framework of the joint venture. It will
avoid the emission of 250,000 tonnes of CO2
each year.
In the Netherlands, two other large-scale
electrolyzer facilities will provide low-carbon
hydrogen to various industrial and mobility
market customers. With individual
capacities of 200 MW, these projects are
set to collectively produce approximately
30,000 tonnes of low-carbon hydrogen
annually, without generating CO2 emissions.

Low-carbon hydrogen
made in USA

Vision

Many countries are initiating efforts to
accelerate the establishment of a solid
hydrogen market. In the United States,
the hydrogen hubs program was created
within the Bipartisan Infrastructure Law and
further enabled by the Inflation Reduction
Act, creating a total of 8 billion dollars
in incentives. This massive investment
plan aims at supporting the transition to
a system based on low-carbon energy,
including the creation of a solid hydrogen
network. The U.S. Department of Energy
has chosen Air Liquide as the partner for
a record six out of seven regional Clean
Hydrogen Hubs. Indeed, hydrogen represents
a major opportunity for the country to
decarbonize its economy and reinforce its
energy sovereignty.

About us

Strategic Report

Governance & Financials

25M

metric tonnes of CO2
emissions avoided
annually in the United
States thanks to these
hydrogen hubs(1)

“With programs like these hydrogen
hubs, the United States is well-positioned
to drive innovation in hydrogen. As
many sectors of the industry tackle the
challenge of decarbonization head-on,
we are ready to work with our partners
to develop these hubs and support
the emergence of a mature domestic
hydrogen market.”

Adam Peters
CEO of Air Liquide North America

Action

These Clean Hydrogen Hubs are located in
16 states across the American territory, from
the Appalachians to California, including Texas
and the Midwest. They will enable the production
of 3 million tonnes of low-carbon hydrogen per
year, reaching nearly a third of the 2030 U.S.
production target while abating 25 million tonnes
of CO2 per year – the equivalent of 5.5 million
gasoline-powered automobiles – and creating
thousands of jobs(1).

As one of the main industrial sponsors of the
HyVelocity Hub located on the Texas Gulf Coast,
Air Liquide will collaborate with its partners
to optimize existing local energy assets and
develop hydrogen projects that will benefit
Texas, Louisiana, and the surrounding regions.

(1) Source: U.S. Department of Energy.

In the PNWH2 Hub on the Pacific Northwest
coast, the ARCH2 Hub in the Appalachians, and
the MACHH2 Hub in the Midwest, the Group is
committed to advancing the energy transition
and establishing the necessary production,
transportation, and distribution infrastructure
to facilitate access to hydrogen. Additionally,
Air Liquide is also a partner in the ARCHES
network (Alliance for Renewable Clean Hydrogen
Energy Systems in California) and in the
MACH2TM (Mid-Atlantic Clean Hydrogen Hub).

The Group will thus leverage its expertise of
over 60 years across the entire hydrogen value
chain to implement the necessary infrastructure
for hydrogen production, transportation, and
distribution that are essential elements for the
growth and sustainability of the local low-carbon
hydrogen market.

Air Liquide | Annual Report 2023

Pillar 2: Decarbonizing industry

Capturing CO2, an essential solution
for decarbonizing industry

Vision

More than 20% of the world’s CO2 emissions come from industry. Today, the challenge is to
rapidly deploy concrete solutions that will significantly reduce these emissions. Among the
technologies already available, carbon capture and sequestration (CCS) is a key solution
for decarbonizing the industries with the highest emissions and those most difficult to
decarbonize, such as cement, metallurgy, refining, and chemicals. These are also the
sectors where this technology will have the greatest impact, as CO2 concentrations are
the highest. The principle consists in capturing CO2 emissions at the source, treating and
purifying them, and then recycling or sequestering them in permanent geological storage.

Large-scale CCS projects are being developed around the world, particularly in Europe and
the United States, which together account for over 70% of global projects. Air Liquide is
one of the leaders in this field, with its proprietary CryocapTM technology, which captures,
purifies, and liquefies CO2 before it is transported to the sequestration site.

Air Liquide | Annual Report 2023

Action

Air Liquide is involved in a number of large-
scale CCS projects, particularly in Europe.

In the Netherlands, where the government
has set the ambitious target of reducing
the country’s greenhouse gas emissions
by 95% by 2050, the Group is involved
in the Porthos project, the Netherlands’
largest CO2 emissions reduction program.
For Air Liquide, it consists in decarbonizing
its own facilities by installing a CryocapTM unit
at its hydrogen production site in Rozenburg,
near Rotterdam. The project also includes the
construction of a pipeline which, from 2026,
will transport the CO2 emitted by several local
plants through the port of Rotterdam to the
North Sea, 20 km off the coast, where it will
be sequestered at a depth of 3,000 meters in
a depleted natural gas field.

In all, the Porthos project will contribute to
reducing the emissions by 2.5 million tonnes
of CO2 per year, which represents about 10%
of the CO2 emitted by industrial activities
in Rotterdam.

CCS projects in which
Air Liquide is involved
in Europe

About us

Strategic Report

Governance & Financials

“To best meet our customers’ needs, we draw
on our more than 15 years of experience in
this field. As a result, we can offer a portfolio
of innovative technologies guaranteeing
very high capture rates while optimizing the
energy efficiency of installations.”

Florian Gautier
Director of Energy Transition for Large Industries
activity at Air Liquide

Air Liquide is also involved in the K6 project,
a partnership with cement manufacturer
EQIOM. The aim is to make the Lumbres
factory in northern France the first carbon-
neutral cement plant in Europe, by capturing
almost 8 million tonnes of CO2 in the first
10 years of operation, thanks in particular
to the CryocapTM technology. In the same
spirit, Air Liquide will also contribute to
decarbonizing the Lhoist lime production
plant in Réty, in the north of France.

Finally, as part of the D’Artagnan project,
the CO2 captured at the two plants will be
transported to a temporary storage platform
at the port of Dunkirk, from where it will be
shipped to be then sequestered between
1,000 and 2,000 meters below the North Sea.
By 2027-2028, the D’Artagnan project will
contribute to the reduction of emissions by
1.5 million tonnes of CO2 per year.

The Group also participates in many other
initiatives of the kind in Europe, such as the
Kairos@C, Antwerp@C, ECO2 Normandie and
Callisto projects. These large projects show
Air Liquide’s expertise and commitment to
providing solutions to decarbonize both its
own and its customers’ assets.

According to the
GIEC, the French
intergovernmental
panel on climate
change, no single
technology is a
miracle solution,
but CCS is an
essential technology
for limiting global
warming to 1.5°C
or 2°C by 2100.

Up to

98%

of CO2
captured thanks
to the CryocapTM
technology

Air Liquide | Annual Report 2023

Pillar 2: Decarbonizing industry

ECO ORIGINTM,
certified low-carbon molecules

“ECO ORIGINTM is winning over more
and more of our customers, especially
those close to end consumers, as it
reduces their Scope 3 emissions, both
upstream and downstream, covering
the purchase of raw materials and the
end use of products, as well as Scope 1
emissions corresponding to the CO2
emitted during production.”

Christel Champinot
Climate Program Manager for
Air Liquide’s Industrial Merchant activity

ECO ORIGINTM
gases produced from

100%

renewable energy
sources

Vision

Be it in terms of industrial
performance or environmental
footprint, Air Liquide always
innovates to support its
customers. Many industries use
gases such as oxygen, nitrogen,
argon and carbon dioxide (CO2) in
their manufacturing processes,
which can have an impact on
their carbon footprint. That is why
Air Liquide is now developing ECO
ORIGINTM, a range of certified low-
carbon gases, thus committing
to supporting its customers’
decarbonization efforts.

Air Liquide | Annual Report 2023

Action

Produced from 100% renewable energy sources,
these gases offer traceable emissions from
production to delivery, with their low-carbon
footprint certified by an independent body in
compliance with ISO standards.

Following oxygen, argon, and nitrogen,
Air Liquide is extending its ECO ORIGINTM
low-carbon gas range by offering its customers
biogenic CO2 – ideal for use in the food
industry, where CO2 is used for deep-freezing
and preservation. It is also essential for the
carbonation of soft drinks. In response to the
sector’s environmental needs, the Group offers
biogenic CO2, naturally produced by biological
processes (generated by renewable sources
such as organic waste, fermentation,
or plant respiration).

Among the first companies to be convinced by this
offering are both SMEs and major players in the
food industry. For example, Danone has chosen
to source ECO ORIGINTM CO2 to reduce the carbon
footprint of its sparkling water production. Les
French Bulles also uses ECO ORIGINTM in the
refill canisters for its home soft drinks machines.
ECO ORIGINTM CO2 was a natural fit for this French
SME and its commitment to sustainable, local
production. It is also the choice of Vidya Europe,
specialized in the development and production of
natural ingredients for different markets such as
human and animal nutrition and cosmetics, which
uses it for the extraction of active compounds
from plants. Air Liquide is thus helping Vidya
Europe to significantly reduce the carbon footprint
of its products. It does the same with many other
players in the sector.

Biomethane: a promising
energy source

“Initially used as energy for transport, biomethane is now
an effective solution for the decarbonization of industry.
It’s a key alternative to fossil-based natural gas for
producing heat, as well as a raw material for producing
renewable hydrogen and biogenic carbon monoxide that
are essential molecules for our petrochemicals customers.”

About us

Strategic Report

Governance & Financials

Vision

According to the International Energy Agency, biogas
production is set to quadruple by 2030. Naturally emitted by
the decomposition of organic waste, biogas is composed
of biogenic CO2 and biomethane. This biomethane can be
used as a substitute for natural gas in industrial processes
such as hydrogen production, or as an energy source or
renewable raw material for industries such as chemicals,
thereby reducing CO2 emissions by up to 80%(1). Air Liquide,
which first entered this market with its cryogenic purification
and liquefaction technologies, has been a part of the massive
growth of the global biomethane industry for more than
10 years. Convinced that this energy will play a key role in
decarbonizing heavy mobility and industry, we are investing
in new production units as part of our virtuous circular
economy model.

Jérémie Lallemand
Director of Sales at Air Liquide
Biogas Solutions

Action

Present in Europe, and in particular in France,
Italy, the United Kingdom, and the Nordic
countries, Air Liquide continues to develop its
biomethane business. In Italy, for example, the
Group is enhancing its offering by equipping its
new production unit at Covo, near Milan, with
a biogenic CO2 purification and liquefaction
system to serve its industrial customers
(greenhouse agriculture, metal fabrication,
chemicals) in the region. In China, Air Liquide
has launched its first production unit, with
a capacity of 75 GWh per year, to produce
biomethane to supply homes via the city
gas network. It will also be used to generate
electricity for the production unit and the local
power grid. Air Liquide is also expanding its
biomethane production capacity in the United
States, where a new unit in Rockford, Illinois,

(1) Source: Carbone 4.

211,000

tonnes of CO2 avoided
in 2023 thanks to
the 1.8 TWh of
biomethane
produced by
the Group

is about to come on line. With a capacity
of 380 GWh per year, it will be the Group’s
largest biomethane unit. With five production
units already in operation, Air Liquide is
becoming a significant player in biomethane
production in the country, a position the Group
has strengthened with the recent start of
construction of two new units in Pennsylvania
and Michigan. By increasing its biomethane
production, the Group is pursuing its ambition
to support the energy transition of its
transportation and industrial customers.

With 26 operational units worldwide, a capacity of
1.8 TWh per year, and its mastery of the entire value
chain, Air Liquide is contributing to the growth of
biomethane as a renewable energy source and thus
to the development of a low-carbon society.

Air Liquide | Annual Report 2023

Unlocking
progress via
technology

Air Liquide | Annual Report 2023

Innovation and technology
are at the heart of Air Liquide’s
DNA. They have always
enabled it to play a pioneering
role. Today, these strengths
make it possible for the Group
to take part in the development
of key sectors of the future,
such as Healthcare, where its
solutions contribute to improving
the quality of life of patients.
These also include industry and
fundamental research where its
small molecules are essential
to develop the cutting-edge
technologies needed to help
build a more sustainable society.

That is why, as part of its ADVANCE
strategic plan, the Group spends more than
300 million euros per year on research and
innovation, with more than half dedicated to
the crucial sectors of energy transition and
digital technologies.

About us

Strategic Report

Governance & Financials

Our objectives and ambitions

Our results

50%

of innovation spending
dedicated to the energy transition
and to digital technology

Improving the quality
of life of patients
at home with chronic diseases
in mature economies

€309M

innovation spending
in 2023 of which

51%

dedicated to the energy transition
and to digital technology

More than 2M

patients worldwide

55%

of patients benefited of
personalized care plans in 2023

Air Liquide | Annual Report 2023

Pillar 3: Unlocking progress via technology

A true partner
is Always There

Vision

All essential products and services need to be founded on
quality and timeliness, but none present a greater need for
reliability and urgency than healthcare. Patient outcomes,
and indeed lives, are at stake.

For decades, Air Liquide has been a major player in
the healthcare sector, providing medical gases and
related services to 20,000 hospitals and clinics in the
world. In addition to the medical gases themselves, we
address storage capacities and cylinder management in
departments; piping required for bedside gases, and in
operating rooms; and monitoring of all parameters related
to medical gases thanks to digital solutions.

Today, the Group takes its commitment further, by being a
partner of choice for the healthcare professionals working
in hospitals and care facilities. This led Air Liquide to
create “Always There”, a completely new value proposition
to provide facilities with unparalleled medical gas
supply reliability and seamless onsite gas management,
in a sustainable way. At its heart: the ability to free
up caregivers to allow them to focus their energy on
advancing patient care.

Air Liquide | Annual Report 2023

100

healthcare professionals
surveyed to create the
“Always There” value
proposition

Action

The “Always There” value proposition is
the result of a survey of more than 100
healthcare professionals, ranging from front-
line doctors and nursing teams to technical
experts, administrators and procurers. We
drew respondents from across the sector,
including emergency, surgical, intensive care
and respiratory care units around the world.

“Always There” is founded on three pillars:

• Guaranteeing supply, to bring healthcare
professionals peace of mind, by making
medical gases available in times of
calm and crisis, and by strengthening
supply chains.

• Simplifying gas management, combining
the best of technology, expertise and
highly committed teams to deliver
complete medical gas management,
freeing hospital staff for patient care.

• Reducing carbon footprint, by providing
medical gases produced from renewable
sources while reducing waste.

About us

Strategic Report

Governance & Financials

How to deliver medical gases
consistently and adequately?
Our robust supply chain, based on
local plants and backup plans, ensures
continuous medical gas availability.
Telemetry and technical assistance
further assist healthcare providers
to manage supplies more easily. We
provide healthcare facilities with an
all-in-one solution tailored to their
needs, aiming to guarantee medical gas
availability during crisis. This solution
includes equipment reservations, on-site
installations upgrades, and provision of
emergency kits and protocols.

Reducing the carbon emissions
of hospitals

Sustainability being a key part of
“Always There”, the Group also supports
the healthcare sector in their objective to
reduce their carbon footprint. For instance,
in 2023, the Ikazia Hospital in Rotterdam
(The Netherlands) chose liquid oxygen
with the ECO ORIGINTM solution supplied by
Air Liquide Healthcare. This offer guarantees
that the oxygen supplied was produced
using 100% renewable energy. This helped
reduce the carbon footprint for these gases
by 86%(1).

Matthijs de Vroed, Sustainability Leader
of the Ikazia Hospital, comments: “This
reduction in our emissions means a
reduction of 16,000 kg of CO2 annually. A
great step towards reaching the objective of
the Dutch Healthcare Green Deal that targets
to reduce the carbon footprint of healthcare
organizations in the country by 30% by 2026.”

Ramping up simplicity

Across our portfolio, we aim to simplify
the management and use of gases by
stepping up products and services for the
benefit of caregivers and patient safety.
The Group provides hospitals with medical
gases and advanced medical devices that
are combined to treat respiratory failure,
from intensive care units to patients’ beds.
Beyond the therapy offer, Air Liquide provides
dedicated services with training and 24/7
support for technical and clinical assistance.
Dr Marcial Rey, Director of Anaesthesiology
and Resuscitation at Hospital Povisa Vigo,
Spain, explains: “The gas administration
system provided by Air Liquide Healthcare
eases the healthcare professionals to start
the treatment. Another aspect is the support
of Air Liquide teams in training healthcare
professionals responsible for assembling
the system, handling it and delivering of the
treatment itself.”

In a sector that highly depends on reliability,
Air Liquide is thus a trusted partner relying
on a “rational use of technology and
innovation to improve patient health and
support professionals in implementing these
improvements”.

(1) Certified to an international ISO standard by an

independent certification body.

How to simplify the daily work
of caregivers?
Combining digital technology,
expertise and dedicated teams,
Air Liquide Healthcare can handle
the comprehensive management of
medical gases on-site. Our solutions
feature ergonomic, compact and user-
friendly oxygen mobility cylinders for
safe patient transfers and personalized
gas management through Air Liquide
Healthcare experts to cover any
customer demand. Additionally, our
digital platform ensures simplified
management of data, assets, and
services, enhancing customer
overall experience.

How to reach carbon neutrality
for medical gases?
At Air Liquide, we aim to reduce the
CO2 emissions of gas supply. For our
transportation, we will progressively
transition to more environment-
friendly energy solutions as we have
already done for our production. By
transitioning to air separation units
powered with renewable electricity,
Air Liquide allows its customers
using the ECO ORIGINTM offer to
reduce CO2 emissions by 70 to 95%
for a given product, depending on
their geographies.

Air Liquide | Annual Report 2023

Pillar 3: Unlocking progress via technology

Joining forces to accelerate
hydrogen mobility

100

hydrogen stations to be
built in the coming
decade in Europe

Vision

Transportation is essential to our daily
life but it comes at an environmental
price. Around 15% of the world’s total
CO2 emissions originate on its roads,
with heavy duty vehicles accounting for a
major share. Society at large is pushing for
alternatives to decarbonize transportation.
Air Liquide is contributing to intensify
the use of hydrogen as a decisive low-
carbon solution for mobility. To actively
participate in this crucial momentum, the
Group is forming partnerships with major
local players to establish a low-carbon and
viable hydrogen ecosystem in Europe, Asia
and the U.S.

Air Liquide | Annual Report 2023

Action

Joint initiative to power heavy-duty transport
in Europe
In 2023, Air Liquide and TotalEnergies created TEAL Mobility,
aiming to establish over 100 hydrogen refueling stations on
Europe’s main road corridors over the next decade, creating
the first transnational European network for trucks. This joint
venture, equally held, combines Air Liquide’s expertise on the
hydrogen value chain with TotalEnergies’ long experience in
operating and managing station networks. Aligned with the
European Union’s decarbonization goals, TEAL Mobility’s
objective is to reach early on a minimum viable network for
heavy duty truck operators to develop and deploy hydrogen
vehicles with confidence, thus contributing to the widespread
adoption of hydrogen for heavy duty mobility.

Fostering the rise of the hydrogen economy
in Asia
In Asia, hydrogen momentum is not lagging behind. For
instance, South Korea targets a 35% reduction of its
greenhouse gas emissions by 2030, aiming for carbon
neutrality by 2050. Hydrogen is pivotal, leading Air Liquide to
collaborate with Lotte Chemical and investing in advanced
hydrogen filling centers. Air Liquide provides expertise, Lotte
Chemical access to substantial hydrogen. With a strong
commitment to the ‘Hydrogen Economy Roadmap,’ South
Korea leads the transition to a hydrogen economy and
cleaner mobility.

Similarly, Japan, aiming for a low-carbon society by 2040,
prioritizes sustainable mobility with hydrogen. Air Liquide
partners with ENEOS Corporation to accelerate the
development of low-carbon hydrogen, leveraging ENEOS’s
infrastructure and market presence, and Air Liquide’s
60 years of expertise in hydrogen, including Carbon
Capture, Utilization, and Storage (CCUS).

Bolstering the hydrogen mobility market
in the U.S.
Air Liquide and Trillium Energy Solutions have signed in
2023 a Memorandum of Understanding to pursue the
development of the heavy-duty hydrogen fueling market
in the U.S. This significant collaboration marks a pivotal
milestone in accelerating the decarbonization of the
transportation sector while bolstering the hydrogen mobility
market. The ambition through this partnership is to initially
support the development of 150 tons per day of hydrogen
production and the refueling infrastructure capable of
supplying more than 2,000 heavy-duty vehicles.

These partnerships demonstrate Air Liquide’s expertise
and its contribution to the development of low-carbon
ecosystems for a more sustainable mobility.

3D printing, a multi-layered
success story

About us

Strategic Report

Governance & Financials

“Additive manufacturing is still an emerging
market of global manufacturing: it targets high
value added applications like lighter parts
for aeronautics contributing to reduce their
carbon footprint. It is displacing traditional
manufacturing processes and it is a great
addition to the portfolio of technologies.
So, at Air Liquide, we are proud to play
a part in its development.”

Fabien Januard
Industrial Merchant Experts Global Network
Manager at Air Liquide

+20%

Industrial gas demand
growth by 2027
in the additive
manufacturing
sector(1)

Vision

The process of metal additive manufacturing
– also known as 3D printing – is an industrial
technique that consists in building metal
parts layer by layer, using digital models.
Due to the design freedom and customization
it allows, metal additive manufacturing is a
rapidly growing technology with a wide range
of applications and significant potential for
innovation. Applications range from the medical
field, to aerospace and automotive, industrial
tooling, and even the energy sector. Industrial
gases play a significant role in metal additive
manufacturing processes, impacting quality,
efficiency and safety. Air Liquide provides
solutions all along the value chain: from gas
atomization for metal powder production to the
additive manufacturing process itself, to post
treatments and parts cleaning.

(1) Additive Manufacturing power report.

Action

When it comes to metal parts, a leading
technique is powder bed fusion, where thin
layers of metal powders are melted and layered.
It is an industrial gas-intensive process leading
to a significant growth demand: projections
point to 20% more gas being needed by 2027(1).

Among the Group’s customers in the sector,
ArcelorMittal holds a special place as the global
steelmaker is developing a new business focusing
on steel powders for additive manufacturing, with
its AdamIQTM range. One example of application
for the automotive industry consists in coating
layers on brake discs to help prolong their life
and reduce braking particulates’ emissions.
Directly linked to the Euro 7 regulation set by
the European Union, it aims at lowering air
pollutant emissions from road transport.

Air Liquide also collaborates with ArcelorMittal
on gas atomization, a crucial phase for producing
metal powders that meet additive manufacturing
standards, especially for aerospace, automotive,
and medical applications as those require high-
quality spherical powders. This process uses
significant amounts of argon and nitrogen, as
gas is blown onto liquid metal streams to create
the powders. ECO ORIGINTM gases are perfectly
aligned with ArcelorMittal’s XCarbTM strategy for
a sustainable metal manufacturing. In addition
to gas supply, Air Liquide leverages its expertise
in molecules and its research and knowledge
in metal additive manufacturing to optimize
processes. Through this fruitful partnership with
ArcelorMittal, Air Liquide collaborates on defining
technical specifications, sharing innovation
projects, and aligning on market opportunities
and business visions.

Air Liquide | Annual Report 2023

Pillar 3: Unlocking progress via technology

SHINE a light on
fundamental research

“We have been honored to partner with ShanghaiTech
University since 2005, and our collaboration on the SHINE
project strengthens our long-standing relationship. This
partnership acknowledges our expertise in extreme
cryogenics, and we are proud thereby to contribute to
advancements in fundamental research.”

Vision

Unlocking progress via technology also
means expanding scientific knowledge
that can have a positive impact. That is
the purpose of Big Science, i.e. large-scale
scientific research projects aiming for
breakthrough findings. And Big Science
requires big expertise in cryogenics:
Air Liquide’s speciality. Thanks to its
mastery of ultra-low temperatures for
decades, the Group is always ready
to support major scientific projects
with its competencies in mechanical
cold production, gas liquefaction,
storage and distribution of cryogenic
fluids at extremely low temperatures.
Major projects include amongst others
the LHC (Large Hadron Collider),
the CERN’s particle accelerator, ITER,
the experimental fusion reactor and the
SHINE project.

Air Liquide | Annual Report 2023

Przemyslaw Brozyna
Managing Director,
Gas & Cryogenics Business Unit,
Air Liquide Advanced Technologies

Action

Since 2018, Air Liquide has supported
ShanghaiTech University by participating in
its SHINE project: Shanghai HIgh repetition
rate XFEL aNd Extreme light facility. Built in a
3.2 km- long tunnel located 29 m underground,
this particle accelerator will generate high-
intensity X-ray flashes that can go through
relatively thick objects without being absorbed
or diffused. The ultra rapid, high-resolution
images thus created will be used in a range
of applications, from developing new drugs
to designing new materials for electronics
and clean energy technologies.

Simply summarized, Air Liquide’s participation
in the SHINE project consists in building China’s
biggest-ever cryogenic refrigeration system
achieving temperatures close to the ‘absolute
zero’: -271°C.

Every partner has to bring proven, world-class
experience and technological resources to a
project of this scale and ambition. Air Liquide
draws on a wealth of experience, gained over
more than 60 years of pioneering work in
cryogenics, and in particular extreme cryogenics,
one of the Group’s core areas of expertise.

SHINE is due to come into service in 2025 and
Air Liquide will keep accompanying the project
beyond that date through operations support
and predictive maintenance activities.

-271°C

is the temperature
required for the
SHINE project

Using AI with
intelligence

Vision

As the world wakes up to the
possibilities presented by this new
technology, Artificial Intelligence (AI)
has become a key resource to aid
thinking, planning and actions. Thanks
to high-quality and well-structured data
combined with human intelligence,
AI helps us make predictions,
recommendations and enlightened
decisions based on very large amounts
of data. It is a valuable resource
that not only enhances Air Liquide’s
operational efficiency and eases
employees’ work but also enables the
development of innovative solutions,
ultimately leading to better services for
our customers and patients.

About us

Strategic Report

Governance & Financials

“At Air Liquide, our main challenge is
to make sure that digital tools always
remain business enablers that are
ultimately used for the benefit of our
customers and patients as well as
our teams.”

Baladji Soussilane
Vice President,
Digital & IT at Air Liquide

500+

Air Liquide projects
have already
used data and AI

Action

Enhancing our operations and solutions
Every day, 3.5 billion data points are collected
from Air Liquide’s 500 plants, 20 million gas
cylinders, and 9,900 trucks. Their analysis allows
a better management of the industrial assets
and drives optimization efforts. Our teams have
implemented various AI-powered solutions
to enhance the reliability of production units
while optimizing their energy consumption and
assisting dispatchers and drivers in planning gas
delivery and sourcing.

A valuable resource for healthcare
AI also supports our Value-Based Healthcare
approach which puts people with chronic
diseases at the heart of the care pathway to
improve their quality of life at the best cost for
the healthcare system.

Data and AI enable us to monitor sleep apnea
patients, using an algorithm that predicts
the risk of non-adherence of treatment

among those equipped with a connected
device. Our teams can thus set up the most
appropriate personalized care plan for the patient.

In 2023, 22,000 patients suffering from sleep
apnea, have started benefiting from personalized
support based on the monitoring of outcomes
thanks to the digital tools developed by
Air Liquide, particularly in Europe, South Korea,
Brazil and Australia.

Next step for our AI-powered tools: predictive
alerting, which will help our healthcare teams
identify in advance patients who may not be
able to keep up with their treatments.

In addition, with the objective to provide a
better quality of life for patients, this approach
combining human and digital resources also
contributes to the efficiency of the healthcare
system, ultimately leading to its resilience.

Air Liquide | Annual Report 2023

Acting for all

Air Liquide | Annual Report 2023

As a civic-minded company,
Air Liquide strives to ensure
that everything it does is in
the interests of its stakeholders
and, beyond that, of society
as a whole.

Firstly, for its employees, the Group promotes
a culture based on dialogue and continuous
learning in a safe, inclusive and collaborative
working environment.

To better serve our customers and
patients, Air Liquide pursues its initiatives
to understand their new expectations,
simplifying and enhancing interactions and
increasing agility by empowering our teams
to work as closely as possible with them.

For our shareholders, the Group has a
proactive shareholder policy that gives
individual shareholders an important role.

Mindful of the changing world, Air Liquide
understands how to act in the public interest,
where its contribution can make a positive
impact. The Group is involved in long-term
community projects in the countries in which
it operates.

About us

Strategic Report

Governance & Financials

Our objectives

Our results

35%

of engineers and professionals
will be women by 2025

32%

of women among engineers
and professionals within
the Group in 2023

100%

78%

of our employees will benefit
from a common basis of care
coverage by 2025

of our employees benefited
from the common basis of
care coverage in 2023

100%

of our employees will have the
opportunity to engage in local
initiatives to support communities
as part of the Citizen at Work
program by 2025

73%

of our employees can have
access to the Citizen at Work
program in 2023

Air Liquide | Annual Report 2023

Pillar 4: Acting for all

Two Air Liquide ways of
caring about people

Vision

At Air Liquide, performance means
first developing our employees’ ability
to engage and go the extra mile for
our customers, our patients and for
society as a whole. That’s why our
aim is to offer our 67,800 employees
the right support, wherever they are
and whatever may be happening in
their lives, by creating a safer work
environment and providing social
protections, so that they can unlock
their full potential.

Action

Safety, our licence to operate
Safety is a fundamental value for the Group
with a strong ambition: “zero accidents, on
every site, in every region, in every entity”.
As a responsible industry player, Air Liquide is
therefore committed to efficiently and under
all circumstances reducing the exposure of its
employees, subcontractors, customers, patients
and suppliers to professional and industrial risks.

That is why the Life-Saving Rules which apply to
everyone and cover Individual, Road and Process
safety were edicted. They are enforced first
through trainings in safety and risk prevention
for both employees and partners, as well as
through regular exchanges of experience and
on site visits to make sure that the facilities
comply with our high standards. In 2023, the
Group focused particularly on road safety for
our drivers and subcontractors. In addition to
training and constant reminders of the basic
principles of safe driving, 60% of our heavy
vehicles fleet is now equipped with digital
technology to assist or protect drivers.

“Going into the field of our operations is a
way to keep connected with our people
and field realities. Sharing with them helps
understanding daily challenges, and learning
about safety good practices we may replicate
in other places.”

Alexandre Morainville
HSEQ & Risk Management Director for Healthcare
in North & Central Europe at Air Liquide

A common basis of care coverage
for all employees
Protecting our teams also means offering
them peace of mind. Present in 72 countries
with diverse cultures, Air Liquide historically
faces very different situations in care coverage
for employees. As a social responsible
employer, the Group is committed to providing
a common basis of care coverage to all of our
67,800 employees so that they can rely on:
• A one-year insurance plan to provide

income and support in case of an accident
or disease, notably if they cannot work
• Health insurance cover to pay for inpatient

and outpatient treatment
• A minimum of 14 weeks’ paid

maternity leave

Today, 78% of our teams benefit from the
Common Care Coverage policy, and the goal
is to reach 100% by 2025.

1.0

lost-time accident
frequency rate(1)

20-year

best performance in lost-time
frequency rate

78%

of employees benefited from the
common basis of care coverage
in 2023, with a target of 100%
coverage by 2025

Air Liquide | Annual Report 2023

(1) Lost-time frequency rate for Group employees and temporary workers. Number of accidents with at least one day’s

absence from work per million hours worked.

More diversity in STEM

Vision

From Marie Curie, the pioneer of
radioactivity, to Dr Katalin Kariko, who
co-devised the technology behind the
Covid-19 vaccines, women have a long
history of extraordinary achievements
in Science, Technology, Engineering and
Mathematics (STEM).

Women in STEM bring diverse perspectives,
innovative problem-solving, and a unique
blend of skills that enhance creativity
and drive progress in science and
technology. That is why, at Air Liquide, we
are committed to harness the talents of
many more women in senior roles. The
Group has thus set for itself the objective
of reaching 35% of women in management
& professional positions by the end of
2025. This requires an environment where
women will be as likely to join and to stay
with the company as their male colleagues.
Air Liquide is thus actively recruiting and
empowering women.

Action

A significant initiative is Women in TCL
(Technical Community Leaders), which
allows female employees in technical
areas to gain more expertise and visibility.
A cornerstone of this initiative is the
establishment of a robust mentoring
program that facilitates knowledge
exchange and skill development
between mentees and their mentors.

Another program is MORE, aiming at
supporting gender diversity within the Group’s
Innovation and Development Division. The
program, launched in 2023, is based on three
main actions: ensure that as many women
as men are recruited, a referral program to
encourage employees to recommend external
female profiles to the Group and a set of
initiatives to support women at early stages of
their career in their professional development
including to facilitate access to their first
management position.

Globally, the Group actively recruits female
talents through various initiatives. For instance,
we collaborate with universities to reach out
to women, challenge stereotypes, highlight
opportunities, and cultivate a diverse pipeline
of future applicants.

About us

Strategic Report

Governance & Financials

Recognizing technical
expertise

Air Liquide celebrated in 2023 the 20th
anniversary of its TCL program. Since
its creation, its members, who are now
more than 4,500, have consistently driven
innovation, enabling the Group to offer
new solutions, tailored to customers’
needs. This dynamic network continues
to grow each year, highlighting our
employees’ career development in
technical fields.

32%

of women in
management and
professional roles in
2023 with a target
of 35% by 2025

In Europe, we launched a campaign in
Poland to combat gender biases and
promote an inclusive culture for women in
STEM. Similarly, in Germany, a recruitment
campaign using gender-neutral language
and innovative channels resulted in a 15%
rise in female applications, an initiative that
will be replicated within the Group.

Worldwide, the message is the same:
women in STEM are valued, respected and
will find an inspiring platform for their talents
at Air Liquide.

“The most important
message is not: you
are standing here
because you are a
woman. But you are
standing here because
you are excellent in
what you are doing.”

Process Manager at Air Liquide,
TCL International Expert

Air Liquide | Annual Report 2023

Pillar 4: Acting for all

“It is really important that the patient’s
voice is being properly listened to.
As patients, we are the experts!”

Improving the quality of life
of patients

Sofia Segersson,
Patient Community Manager,
an Air Liquide partner

Vision

In home healthcare, we aim at
providing everyday personalized
support for people living with
chronic diseases, with the
objective to make it easier
for them to achieve their
therapy goals and improve
their quality of life. We believe
in the combination of the
most suitable treatment and
the most adapted support,
both are key components in
supporting chronic diseases.
At Air Liquide, we are convinced
that we can contribute to better
outcomes through a focus on
personalization of care.

Air Liquide | Annual Report 2023

Action

Listening to patients to implement
services that matter to them
“If you take 100 people with Type 1 diabetes,
you’re looking at 100 different variations of
the disease.” Those are the words of Sofia
Segersson, who is a patient community manager
working with Air Liquide, and who also lives with
the condition herself. She is leading a Patient
Advisory Board, a new forum for 54 patients
living in Sweden, with ages ranging from 17 to
30, all of whom have Type 1 diabetes. It was
initiated by Sofia Segersson and Daniel Stjern,
Diabetes Business Development & Innovation
Manager at Air Liquide, following a common
vision to incorporate a deep understanding
of patients’ needs into the development of
Air Liquide’s diabetes services.

In recent years, technology has made giant
strides in helping to manage the condition
with more advanced connected devices.
Such technologies, together with the appropriate
training and support, help improve patients’
clinical results and outcomes. While this is
good news and often liberating for them, an
aspect may be going largely untreated: their
emotional wellbeing.

Sofia Segersson comments: “A patient may
meet a physician perhaps once or twice a year.
But what we need is not just ‘how are you?’ but
more “how are you, really?” This need can be
particularly acute when a young adult leaves
paediatric care and, possibly, the daily support of
parents. To transition from child to adult in the
healthcare system can be a lonely experience.”

Listening, then acting to empower
Our Patient Advisory Boards give the time and
space to delve into how patients actually are, and
to talk beyond their clinical data related to glucose
rate for instance. They can explore what their
pain points are and together suggest a solution
to fix them based on experiences, expectations,
disease expertise and data because it is created
jointly by both data outputs and expert humans.

Sofia Segersson concludes: “It is really
important that the patient’s voice is
being properly listened to.
As patients, we are
the experts!”

120

initiatives
focused on
patients
since 2021

Making oxygen more accessible

About us

Strategic Report

Governance & Financials

Vision

Oxygen saves lives – yet half of the
world’s population has no access to
medical oxygen. As a major player in
the healthcare sector worldwide for
60 years, Air Liquide has leveraged
on its long-term expertise in medical
oxygen supply to create a social
impact program – Access OxygenTM
– to make medical oxygen available
in rural areas in low- and middle
income countries. Since the launch
of the program, 2 million people in
Senegal, South Africa and Kenya have
gained access to oxygen. And the
work continues: our ultimate goal is
to develop access to oxygen in more
countries in Africa but also in Asia
and Latin America.

>2M

people in Africa have been
facilitated with access to
oxygen since the launch
of the program

(1) WHO Mother-Child Epidemiology Estimate (WHO-MCEE) 2018.

Action

Q&A: Dr Bernard Olayo, founder
of Centre for Public Health and
Development (CPHD), Kenya

Doctor, what is CPHD?
Our mission is to address the main health
challenges that can be fatal for women and
children. We bring innovative solutions to the
public health system in the Eastern African region.

Can you give us an example of when medical
oxygen is saving lives?
A particularly dangerous illness is childhood
pneumonia. Each year it kills around 800,000
children under the age of five worldwide(1). Most
deaths are concentrated in countries where
incomes are low. That includes Kenya, where
tragically we lose up to 6,000 children each year,
mainly because of a lack of oxygen. Even when
seriously ill children receive hospital treatment
and the necessary antibiotics, half of them will
still die if oxygen is not available.

How has Access OxygenTM made a difference?
While other programs serve larger hospitals,
Access OxygenTM fills a vital gap because it
is tailored to the needs of primary care – for
example, the clinics serving small and often
remote communities.

Once these smaller facilities have oxygen, they
can administer life-saving treatment to a sick
child more quickly, without losing vital time
travelling to a bigger facility.

Concretely, what does the support of
Access OxygenTM look like?
We are equipping the small primary care
facilities with a complete solution comprising
oxygen cylinders, concentrators, pulse
oximeters and regulators. And as importantly,
Access OxygenTM provides training for the
caregivers, and supports the equipment with
maintenance to ensure accuracy and reliability.

Why did you choose Access OxygenTM?
We have partnered with Access OxygenTM teams
because of their work done in Senegal. They bring
real-world experience of providing this support
in other places. With their track record, we can
approach potential funders with a high degree of
credibility. Thanks to their experience, we were
able to make the solution in Kenya a reality.

Air Liquide | Annual Report 2023

Pillar 4: Acting for all

Our people are Citizen at Work

Action

At Airgas, an Air Liquide’s subsidiary in the U.S.,
looking after people is clearly in the DNA and
employees are always thrilled to give back to
communities. When the Citizen at Work program
was launched, employees seized the opportunity
to get more involved. A major project is the
Airgas High School Welding Education Initiative
launched five years ago to prepare students
for careers in welding as the industry faces
a shortage in skilled labour. According to
projections from the American Welding Society
forecasts, 336,000 new welding professionals
will be needed by 2026, a challenge that Airgas
contributes to address.

Since 2018, the Airgas High School Welding
Education Initiative has assisted 117 schools,
8,178 welding students and nearly 560
instructors across the country. In addition,
1,071 students obtained jobs directly after
graduating. In 2023, with the help of the Citizen
at work program, Airgas expanded the initiative,
supporting 56 schools from 23 states thanks to
the involvement of 113 employees.

Vision

Air Liquide’s success relies on the dedication
and expertise of its 67,800 employees
worldwide. This represents a remarkable
reservoir of talent, energy and willingness to
give back to communities. We are actively
leveraging this shared commitment to
empower our people to volunteer through
a structured and engaging program called
Citizen at Work. Our target: by 2025, to
empower 100% of our employees to dedicate
a portion of their working hours to lend a
helping hand to their local communities.

Air Liquide | Annual Report 2023

Citizen at Work was launched in 2022 and,
already, 73% of our people have access to
the program. It focuses on areas that are
in line with the company’s sustainability
objectives and the teams’ expertise, with a
particular emphasis on healthcare, safety,
the environment, professional development
and education: an initiative that not only
contributes to the development of local
communities but also enhances employees’
sense of purpose in their daily lives.

73%

of our people can already
access Citizen at Work
with a target of 100%
by 2025

Air Liquide Foundation:
15 years of actions

Vision

Air Liquide is committed to supporting
local communities in the countries it
operates in. Since its creation in 2008,
the Air Liquide Foundation has taken
action in three areas: environmental
and medical research, access to
employment and solidarity. This action
is driven by the ambition to make a
positive impact by providing on-the-
ground support and leveraging the skills
and commitment of the Group’s teams
to support local projects.

The very origin of the Air Liquide
Foundation is based on the direct
involvement of the Group’s employees.
This is still one of its distinctive
characteristics today. Each and every
project is initiated by an employee and
is followed by a colleague based locally,
close to the project.

About us

Strategic Report

Governance & Financials

“I recommended to the Air Liquide Foundation an
association in which my husband does volunteer
work. I believe that it is important to bring something
personal to my community, in particular to children,
thanks to my company’s support.”

500

projects in 50 countries
in 15 years

Lina Feudi
Air Liquide Italy employee, sponsor of the
Dynamo Camp’s project

Action

2023 was particular as the Foundation
celebrated 15 years of impactful initiatives,
supporting over 500 projects across 50
countries since its creation. Notable actions
supported last year included:

•

In France: Research into the respiratory
system with Institut Pasteur
A fundamental of life – the ability to breathe
naturally and easily – is not a given to
everyone. This project led by a team from
Institut Pasteur in Paris, is researching the
treatment of pulmonary bacterial infections
that affect patients with cystic fibrosis, and
more generally patients with antibiotic-
resistant infections.

•

In Spain: Access to employment through
the Fundación Tomillo
This project supported young people from
disadvantaged backgrounds to embark
on comprehensive training in warehouse

management and, as importantly, courses
and mentoring in interpersonal skills in
the business environment. Additionally,
they could join a two-month internship at
Air Liquide or one of five partner companies.
The program has clear goals, and 100% of
the participants qualified for certification at
the end of the course.

•

In Asia and Africa: Solidarity
Giving access to education and training is
part of its solidarity action. This year, the
Foundation supports projects worldwide in
order to offer young people from particularly
disadvantaged backgrounds access to
education in the Philippines, in Burkina
Faso, in Mali and many other countries.

Air Liquide | Annual Report 2023

Governance

The primary decision-making bodies of
Air Liquide are the Board of Directors and
the Executive Committee. Discover their
respective compositions.

Air Liquide | Annual Report 2023

Executive Committee

About us

Strategic Report

Governance & Financials

Executive Committee as of 01.01.24

The Executive Committee coordinates Air Liquide’s various programs and activities. It implements the strategy
defined by the Board of Directors and oversees operations, the management of transformation projects and business
development. It also carries out strategic reviews and monitors the Group’s safety and operational performance.

01 François Jackow
Chief Executive Officer
Born in 1969 – French

05 Matthieu Giard
CEO of the Americas Hub
Born in 1974 – French

02 François Abrial
Senior Vice President, Group General Secretary
overseeing General Control & Compliance,
Legal, Public & International Affairs and Digital & IT
Born in 1962 – French

06 Michael J. Graff
Executive Vice-President overseeing the Engineering
& Construction activity, and chairing the Boards of
Directors of Group holdings in the Americas
Born in 1955 – American

09 Emilie Mouren-Renouard
CEO of the Europe Industries Hub
Born in 1979 – French

10 Jérôme Pelletan
Chief Financial Officer overseeing the
Shareholder Services Department
Born in 1970 – French

Read more
about the members of the Executive Committee
on airliquide.com

12 François Venet
Senior Vice President overseeing the Large Industries
World Business Line and the Group’s Strategy function
Born in 1962 – French

03 Ronnie Chalmers
CEO of the Asia Pacific Hub
Born in 1968 – British

04 Marcelo Fioranelli
CEO of Airgas
Born in 1968 – Brazilian

07 Amelia Irion
Vice President Group Human Resources
Born in 1970 – American and French

08 Armelle Levieux
Vice President of Innovation, overseeing the Hydrogen
Energy and Electronics World Business Lines as well
as the Global Markets & Technologies division
Born in 1973 – French

11 Diana Schillag
CEO of Europe Healthcare overseeing the Healthcare
World Business Line as well as the Sustainable
Development and the Group’s Procurement functions
Born in 1971 – German

13 Pascal Vinet
Executive Vice-President overseeing the Europe
Industries Hub and the Africa/Middle East/India Hub,
the Group’s Safety and Industrial System function as
well as the Industrial Merchant World Business Line
Born in 1962 – French

Air Liquide | Annual Report 2023

Board of Directors

Board of Directors as of 12.31.23

The composition of the Board of Directors offers a complementarity of experiences,
nationalities and cultures and reflects the Group’s diversity policy.

Benoît Potier
Chairman of the Board of Directors
Born in 1957 – French

Philippe Dubrulle
Director representing the employees
Member of the Environment and Society
Committee
Born in 1972 – French

Bertrand Dumazy
Independent Director
Member of the Appointments and
Governance Committee, Member of the
Audit and Accounts Committee
Born in 1971 – French

Aiman Ezzat
Independent Director
Member of the Audit and Accounts
Committee
Born in 1961 – French

Catherine Guillouard
Independent Director
Chairwoman of the Audit and
Accounts Committee
Born in 1965 – French

Xavier Huillard
Independent Director – Lead Director
Chairman of the Remuneration Committee,
Chairman of the Appointments and
Governance Committee
Born in 1954 – French

François Jackow
Director & Chief Executive Officer
Born in 1969 – French

Christina Law
Independent Director
Born in 1967 – Chinese (Hong Kong)

Kim Ann Mink
Independent Director
Member of the Remuneration Committee
Born in 1959 – American

Alexis Perakis-Valat
Independent Director
Born in 1971 – French and Greek

Read more
about the Board of Directors
on airliquide.com

Michael H. Thaman
Independent Director
Born in 1964 – American

Fatima Tighlaline
Director representing the employees
Member of the Remuneration Committee
Born in 1979 – French

Monica de Virgiliis
Independent Director
Member of the Environment and Society
Committee
Born in 1967 – Italian and French

Annette Winkler
Independent Director
Chairwoman of the Environment and Society
Committee, Member of the Appointments
and Governance Committee
Born in 1959 – German

Air Liquide | Annual Report 2023

The Board of Directors and its specialized committees

About us

Strategic Report

Governance & Financials

The Board of Directors and its specialized committees
The Board of Directors determines the orientations of the Company’s activities and ensures their implementation,
in accordance with its corporate interest, taking into account the social and environmental stakes of its activity.
In this regard, it examines and approves the main points of the Group’s strategy, including the multi-annual points
of strategy concerning corporate social responsibility. The Board relies on four specialized committees.

Audit and Accounts Committee

Appointments and Governance Committee

Composition
The Committee is composed of
between three and five members of the
Board of Directors, including at least
2/3 “independent” members. Members
must have financial or accounting skills.

Some of the Committee’s missions:
• Review of the financial statements and

accounting methods used;

• Check of existence and functioning
of control organizations and control
procedures adapted to the Group,
making it possible to identify and
manage the risks incurred, including
social and environmental risks;
• Selection of the Statutory Auditors;
• Review of the procedures relating to
the preparation and processing of the
extra-financial information.

Composition
This Committee is composed of three to
five members of the Board of Directors and
the majority are independent.

Some of the Committee’s missions:
• Periodic assessment of the structure,
size and composition of the Board of
Directors, and recommendations for
any changes;

• Selection of future independent

directors and studies of potential
candidates as part of the procedure
organized by the Committee;

• Review of the succession plan for

executive directors and the renewal
of the terms of office of the Chairman
of the Board of Directors and the Chief
Executive Officer;

• Ensure the proper functioning of the

governance bodies.

Remuneration Committee

Environment and Society Committee

Composition
This Committee is composed of three to
five members of the Board of Directors,
with the majority being independent.

Some of the Committee’s missions:
• Examination of the performance and

all the components of remuneration for
the Corporate Officers;

• Review of the remuneration and

retirement policy applied to Executive

Management (in particular to the
Executive Committee);

• Examination of the proposals by the

Executive Management concerning the
granting of stock options, performance
shares, and other incentive systems
related to the share price;

• Proposal to the Board relating to the
allocation of the fixed annual sum
awarded to the Directors by the
General Meeting.

Composition
This Committee is composed of three to
four members of the Board of Directors.

Some of the Committee’s missions:
• Examination of the Group’s strategy and
commitments in the field of sustainable
development;

• Monitoring of the Group’s environmental
actions and societal actions and their
deployment, as well as the actions

engaged by the Foundation;

• Examination of the environmental

and societal risks in liaison with the
Audit Committee and the impact of
environmental and societal issues in
terms of investment, performance
and image;

• Form a reasonable judgment about the

extra-financial information.

Air Liquide | Annual Report 2023

Financial statements

Financial
statements

As of December 31, 2023

Consolidated income statement (summarized)

(in millions of euros)

Revenue
Operating costs
Operating profit before depreciation
Depreciation and amortization
Operating income recurring
Other non-recurring operating income & expenses
Operating income
Net financial costs and other net financial expenses
Income taxes
Share of profit of associates

Profit for the period

– Minority interests

– Net profit (Group share)

Consolidated Balance Sheet (summarized)

Assets (in millions of euros)

Goodwill
Fixed assets
Other non-current assets*
Total non-current assets
Inventories & work in-progress
Trade receivables & other current assets*
Cash and cash equivalents

Total current assets

Assets held for sale

Total assets

Equity and Liabilities (in millions of euros)

Shareholders’ equity
Minority interests
Total equity
Provisions
Non-current borrowings
Non-current lease liabilities
Other non-current liabilities*
Total equity and non current liabilities
Provisions
Trade payables & other current liabilities*
Current lease liabilities
Current borrowings

Total current liabilities

Liabilities held for sale

2022

29,934
-22,606
7,328
-2,466
4,862
-571
4,291
-386
-1,002
1

2,904

145

2,759

2023

27,608
-20,058
7,550
-2,482
5,068
-496
4,572
-416
-972
4

3,188

110

3,078

12/31/2022 12/31/2023

14,587
25,458
1,235
41,280
1,961
4,324
1,911

8,196

14,194
25,283
1,137
40,614
2,028
3,970
1,625

7,623

49,518

48,332

12/31/2022 12/31/2023

23,736
836
24,572
1,991
10,169
1,052
2,838
40,622
282
6,367
228
2,004

8,881

24,321
722
25,043
2,005
8,560
1,046
2,832
39,486
364
5,933
220
2,285

8,802

Basic earnings per share (in €)

5.28

5.90

Total equity and liabilities

49,518

48,332

* Including fair value of derivative.

Air Liquide | Annual Report 2023

Consolidated cash flow statement (summarized)

(in millions of euros)

Funds provided by operations
Changes in working capital
Other cash items
Net cash from operating activities
Purchases of property, plant and equipment, and intangible assets
Purchases of financial assets and the impact of changes in scope
Proceeds from sale of subsidiaries, property, plant and
equipment, and intangible and financial assets
Net cash in investing activities
Distribution
Increase in capital stock
Purchase of treasury shares
Transactions with minority shareholders
Change in borrowings and lease liabilities (including net interests)
Impact of exchange rate changes and net debt of newly
consolidated companies and others
Change in net cash and cash equivalents

Net cash and cash equivalents at the beginning of the period

Net cash and cash equivalents at the end of the period

2022

6,255
-397
-48
5,810
-3,273
-136

167
-3,242
-1,487
38
-192
-4
-1,136

-165
-378

2,139

1,761

2023

6,357
-154
60
6,263
-3,393
-103

417
-3,079
-1,667
129
-82
-142
-1,718

-62
-357

1,761

1,404

Complimentary copy. Published by the Communications department of the Air Liquide Group, 75 quai d’Orsay,
75007 Paris, France.

Publication Director: François Jackow. Editor: Domitille Faﬁn. Date of publication and legal deposit: April
2024. ISSN: 2803-6220. Photo credits: in order of appearance, p. 1: Ben Bergh/Capa Pictures, p. 2: Adrien
Daste, p.5: Julien Lutt/Capa Pictures, p. 8: Thomas Laisné/La Company, p. 10: Thomas Laisné/La Company
– All Rights Reserved, p. 11: Dmitrydesign/Shutterstock, p. 13: Gorodenkoff/Getty Images – Wayne Eastep/
Getty Images – Sinology/Getty Images – Betsie Van Der Meer/Getty Images, p. 14: Adrien Daste, p. 15: Oliver
Bellendir Photography, p. 16: Carlos Ayesta/Capa Pictures, p. 17: Carlos Ayesta/Capa Pictures – Air Liquide,
p.18: Adrien Daste, p. 19: Adrien Daste – All Rights Reserved, p. 20: Antonio Hugo/Getty Images, p. 21: Adrien
Daste, p. 22: Daniel Bosma/Getty Images –All Rights Reserved, p. 23: Air Liquide – All Rights Reserved,
p. 24: Oliver Bellendir Photography – All Rights Reserved, p. 25: Gauge Theory Creative – Terry Halsey, p. 26:
All Rights Reserved, p. 27: Adrien Daste – All Rights Reserved, p. 28: lisegagne/Getty Images – Mokrani
Mourad photo, p. 29 : Andrea Campagnolo – All Rights Reserved, p. 30: Adrien Daste, p. 31: Carlos Ayesta/
Capa Pictures, p. 32 : Adrien Daste, p. 33: Adrien Daste, p. 34: Matthieu de Valence, p. 35: Monty Rakusen/
Getty Images – Nicolas Gouhier, p. 36: Monty Rakusen/Getty Images – All Rights Reserved, p. 37: Sophie
Loubaton – Julien Lutt/Capa Pictures, p. 38: Evgeny Atamanenko/iStock, p. 39: Alexis Toureau/Capa Pictures,
p. 40: Bryan Meltz – All Rights Reserved, p. 41: Adrien Daste, p. 42: Adrien Daste – All Rights Reserved, p. 43:
N.Thomas/Capa Pictures, p. 44: Adam Hendrick, p. 45: Christel Sasso/Capa Pictures, p. 47: Thomas Laisné/
La Company, p. 48: Julien Lutt/Capa Pictures – Olga Kolleeny/Capa Pictures – Thomas Cecchelani –
All Rights Reserved – Airbus SAS – L’Oréal. Ref.: ALRA023. Printed by Handi’Print.

This document is printed on FSC-certiﬁed paper sourced from sustainably managed forests by an
Imprim’Vert-certiﬁed printer.

L’Air Liquide – S.A. company established for the study and application of processes developed by
Georges Claude with issued capital of 2,884,842,279.00 euros.

A world leader in gases, technologies and services for
Industry and Health, Air Liquide is present in 72 countries
with approximately 67,800 employees and serves more
than 4 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.

airliquide.com

YouTube
@AirLiquideGroup

LinkedIn
linkedin.com/company/airliquide

Instagram
@air_liquide_group

X
@AirLiquideGroup