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Why Invest in Air Products?

Growth, Profitability and Stability

Why Invest in APD?

Growth

"Capital deployment is the most important job 
of the CEO."
 

Seifi Ghasemi, Chairman, President and CEO

 

Different growth drivers will determine the future growth of our merchant and on-site businesses. The merchant business, including liquid bulk and packaged gases, will grow with local manufacturing activities. The growth of the on-site business will be driven by new projects and customer outsourcing, with excellent opportunities for significant investments. Air Products expects to commit more than $18B between 2018–2022, funded by its strong cash flow and ample borrowing capacity. These new investments will enable the company to accelerate its future growth.

These investment opportunities are driven by the demand for additional energy, the desire for a better environment and the growth of the emerging markets. At Air Products, we have adopted the mantra - Gasification “Today”, CO2 Capture “Tomorrow” and H2 for Mobility “The Day After Tomorrow” as our roadmap. Leading this capital deployment strategy is gasification, where proprietary technologies and in-house expertise make Air Products the clear leader. Next, our experience and know-how to capture CO2 emissions for our customers can drive significant project growth. And, we believe H2 can play an important part of the world’s future energy needs.

 

Key Gasification Projects and Milestones

Key Gasification Projects and Milestones

Large-scale Carbon Capture, Use and Storage 

Air Products has designed and constructed a large-scale system to capture carbon dioxide (CO₂) from our two steam methane reformers located within the Valero Refinery in Port Arthur, Texas. The recovered and purified CO₂ is delivered by pipeline to Denbury Onshore for use in their enhanced oil recovery operations.

Described by the Department of Energy as a milestone in its Industrial Carbon Capture and Storage program, this unprecedented achievement, which uses an Air Products innovative technology, is the first-of-its-kind operating at such a large scale, and has not been accomplished anywhere else in the U.S.

Since 2014, our technology for carbon capture and sequestration at our Port Arthur facility has captured over five million metric tons of CO₂ that would have otherwise been emitted into the environment. 

 

Profitability

 

• The most profitable industrial gas company in the world
• EPS CAGR of 13% from 2014 to 2019
• Commitment to growing EPS more than 10% over the long term
• Strong cash flow due to high margin plus low maintenance capex
• Increased annual dividend for 38 straight years
• Maintaining debt balance to maintain targeted A/A2 rating

 

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* Non-GAAP financial measure. See website for reconciliation.

Stability

There is a high degree of stability in our business model and earnings.
Here's why:

Long-term, Take-or-Pay Contracts
 
  • On-site business generates long-term, secured cash flow
  • No input risks: all raw materials and energy pass through
  • No output risks: revenue not price/volume dependent
  • Contract duration > 15 years
Higher Percent of On-site Business Compared to Competitors
  • More than half of total business is on-sites
  • The proportion of the on-site business will continue to grow
Experience Executing Large/Complex Projects
  • Ability to develop, build, own and operate megaprojects around the world
Global Reach, Diverse End Markets
 
  • Operating in over 50 countries
  • Supplying over 30 different industries
Local Facilities Serving Broad Customer Base
  • Industrial gas is a local business
  • More than 750 facilities serving over 170,000 customers
Experience and History
 
  • Eight decades in the business
  • Developed in-depth knowledge of the industrial gas processes and the best-in-class project execution and operating expertise
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