Since industrial and medical gases are rarely exported, the impact of currency fluctuations on activity levels and results is limited to euro translation impacts with respect to the financial statements of subsidiaries located outside the eurozone. The currency impact is calculated based on the aggregates for the period converted at the exchange rate for the previous period.

In addition, the Group passes on variations in the cost of energy (electricity and natural gas) to its customers via indexed invoicing integrated into their medium and long-term contracts. This indexing can lead to significant variations in sales (mainly in the Large Industries Business Line) from one period to another depending on fluctuations in prices on the energy market.

An energy impact is calculated based on the sales of each of the main subsidiaries in Large Industries. Their consolidation allows the determination of the energy impact for the Group as a whole. The foreign exchange rate used is the average annual exchange rate for the year N-1. Thus, at the subsidiary level, the following formula provides the energy impact, calculated for natural gas and electricity respectively:

Energy impact =

Share of sales indexed to energy year (N-1) x (Average energy price in year (N) - Average energy price in year (N-1))

This indexation effect of electricity and natural gas does not impact the operating income recurring.

The significant scope impact corresponds to the impact on sales of all acquisitions or disposals of a significant size for the Group. These changes in scope of consolidation are determined:


   -- for acquisitions during the period, by deducting from the aggregates for 
      the period the contribution of the acquisition, 
 
   -- for acquisitions during the previous period, by deducting from the 
      aggregates for the period the contribution of the acquisition between 
      January 1 of the current period and the anniversary date of the 
      acquisition, 
 
   -- for disposals during the period, by deducting from the aggregates for the 
      previous period the contribution of the disposed entity as of the 
      anniversary date of the disposal, 
 
   -- for disposals during the previous period, by deducting from the 
      aggregates for the previous period the contribution of the disposed 
      entity. 
 

Comparable sales change

Comparable changes for sales exclude the currency, energy and significant scope impacts described above. For the 1(st) quarter 2021, the calculations are the following:


 
                          Q1                                                       Q1 
                          2021/2020             Natural               Significant  2021/2020 
(in millions of    Q1     Published   Currency  gas      Electricity  scope        Comparable 
euros)             2021   Growth       impact   impact    impact      impact       Growth 
Revenue 
Group              5,334  -0.7%       (272)     133      46           (142)        +3.8% 
Impacts in %                          -5.1%     +2.5%    +0.8%        -2.7% 
Gas & Services     5,103  -1.7%       (266)     133      46           (142)        +2.8% 
Impacts in %                          -5.1%     +2.5%    +0.9%        -2.8% 
 

Efficiencies

Efficiencies represent a sustainable cost reduction resulting from an action plan on a specific project. Efficiencies are identified and managed on a per project basis. Each project is followed by a team composed in alignment with the nature of the project (purchasing, operations, human resources...).

The slideshow that accompanies this release is available as of 9:00 am (Paris time) at www.airliquide.com.

Throughout the year, follow Air Liquide on Twitter: @AirLiquideGroup.


 
UPCOMING EVENTS 
 
Annual General Meeting of Shareholders: 
May 4, 2021 
 
Dividend Ex-coupon Date: 
May 17, 2021 
 
Dividend Payout Date: 
May 19, 2021 
 
2021 First Half Revenue and Results: 
July 29, 2021 
 
 
 
A world leader in gases, technologies and services for Industry and Health, 
Air Liquide is present in 78 countries with approximately 64,500 employees and 
serves more than 3.8 million customers and patients. Oxygen, nitrogen and 
hydrogen are essential small molecules for life, matter and energy. They 
embody Air Liquide's scientific territory and have been at the core of the 
company's activities since its creation in 1902. 
 
Air Liquide's ambition is to be a leader in its industry, deliver long term 
performance and contribute to sustainability - with a strong commitment to 
climate change and energy transition at the heart of its strategy. The 
company's customer-centric transformation strategy aims at profitable, regular 
and responsible growth over the long term. It relies on operational 
excellence, selective investments, open innovation and a network organization 
implemented by the Group worldwide. Through the commitment and inventiveness 
of its people, Air Liquide leverages energy and environment transition, 
changes in healthcare and digitization, and delivers greater value to all its 
stakeholders. 
 
Air Liquide's revenue amounted to more than 20 billion euros in 2020. Air 
Liquide is listed on the Euronext Paris stock exchange (compartment A) and 
belongs to the CAC 40, EURO STOXX 50 and FTSE4Good indexes. 
 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210422006039/en/

 
    CONTACT: Investor Relations 

IRTeam@airliquide.com

Media Relations

media@airliquide.com


 
    SOURCE: Air Liquide Group 
Copyright Business Wire 2021 
 

(END) Dow Jones Newswires

04-23-21 0135ET