Interview with Jérôme Pelletan, Chief Financial Officer of Air Liquide

How would you assess Air Liquide’s 2024 financial performance? 

Air Liquide shrugged off muted market conditions in Europe, Asia, and the United States to record solid results yet again in 2024. It is a performance that we owe to each and every one of our employees, and I extend my heartfelt thanks to them for everything that they do to contribute to the Group’s success. In these challenging circumstances, investment opportunities have never been greater and exceeded €4 billion, a record. Under our ADVANCE strategic plan, we targeted a significant improvement in operating margin of +160 basis points by 2025. After doubling that goal in 2024, we decided to raise our target again in 2025 to an unprecedented level. We are now aiming to improve our margin by +460 basis points in five years, over the 2022-2026 period. 

On March 6, 2024, the Group’s market capitalization exceeded €100 billion for the first time ever, making us one of the top-eight largest firms in the CAC 40 index by market cap. While the share price fluctuated over the course of 2024, exceeding this threshold was a strong signal of the confidence that our investors have in Air Liquide’s model. 

What are the drivers that will power the Group’s future growth? 

Developing new markets is a key driver and has been since we launched our ADVANCE strategic plan. One of the main ones is the energy transition, which accounts for approximately 40% of our investment opportunities today. We are supporting many customers as they take action to decarbonize their businesses.  

Our project with Normand’Hy is a case in point. We are building the world’s largest electrolyzer, which will deliver low-carbon hydrogen to TotalEnergies’ Gonfreville refinery in Normandy (France) starting in 2026. We are also involved in the Porthos (Netherlands) and d’Artagnan (France) initiatives, which aim to accelerate CO₂ capture and storage in Europe. As a key player in the energy transition, we offer our customers real decarbonization solutions spanning their entire value chain. We are part of the solution. You could even say that without us, there is no solution. 

Another major development area for us is the electronics sector, which currently accounts for about 9% of our sales and whose needs are increasing all the time, particularly with the rise of artificial intelligence (AI). Our US collaboration with Micron Technology, a leading semiconductor manufacturer, to supply critical gases to its future memory chip fabrication plant in Idado, is a prime example. 

Also important will be our strategy of geographical expansion and regional densification approach, particularly in the United States and China. Air Liquide demonstrated the resilience of its diversified business model, which is based on the excellent fit between its different businesses and balanced geographical coverage. Since launching our ADVANCE plan, we have made more than 50 small and medium-sized acquisitions, particularly in distribution, to bolster our presence across the entire gas production value chain. One of our great strengths is the balance that we strike between our activities and business bases. 

We have launched an in-house transformation program to enhance our capacity to seize major opportunities and lay the groundwork for the Group’s future. Among other things, we have streamlined our organization to speed up decision-taking and enhance our operating efficiency.

The Group has always conducted a policy of building loyalty among individual Shareholders. What are the benefits of such a relationship?

Profitable and sustainable growth over the long run is impossible without a clear, stable and identified Shareholder base. We have by far the largest proportion of individual Shareholders in the CAC 40, at 33%. Many of these Shareholders have trusted us for years and pass their shares on to their children. The Group’s strength is reflected in excellent long-run returns for Shareholders, with the 20-yr TSR⁽¹⁾ standing at 12%. We reward our Shareholders by offering them +10% on the amount of dividends and +10% on the number of free shares distributed during the allocation operations. We also promote dialogue, transparency and close ties to our individual Shareholders, particularly through the Shareholders’ Communication Committee (SCC).