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    Andrew Gregory Stott

    Research Analyst at UBS Group AG

    Andrew Gregory Stott's questions to L AIR LIQUIDE SA /FI (AIQUY) leadership

    Andrew Gregory Stott's questions to L AIR LIQUIDE SA /FI (AIQUY) leadership • Q3 2021

    Question

    Andrew Gregory Stott asked about pricing momentum in Europe given regional energy dynamics, the previously mentioned 1-to-6-month lag for price adjustments, and requested a quantification of the company's confidence in margin growth. He also inquired about the return on capital for the SMR project takeover from TotalEnergies, particularly when including carbon capture costs.

    Answer

    Jérôme Pelletan, CFO, confirmed pricing is accelerating, with the Q3 rate of +3.5% increasing to +3.7% in September, and committed to delivering a +60 basis point margin improvement for the full year 2021, excluding energy pass-through. Francois Jackow, Executive VP, stated that the SMR takeover, including the Cryocap unit, targets returns similar to normal on-site projects and is economically viable without subsidies. He noted the investment decision for carbon capture is tied to the CO2 price and is expected 'sooner than later'.

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    Andrew Gregory Stott's questions to L AIR LIQUIDE SA /FI (AIQUY) leadership • Q1 2021

    Question

    Andrew Stott from UBS posed three questions regarding the 2021 outlook for pricing given the fading helium benefit, the balance of margin improvement between the first and second half of the year, and the organic growth impact from the Kazakhstan takeover.

    Answer

    CFO & Executive VP Fabienne Lecorvaisier projected solid full-year pricing between 1-2%, supported by new price campaigns. She confirmed that margin improvement will be stronger in H1 than H2, as H1 compares against a period before full cost containment was implemented. Regarding the Kazakhstan takeover, both Fabienne Lecorvaisier and François Jackow, Executive VP, confirmed it is included in comparable organic growth and represents less than 10% of the full-year contribution from start-ups.

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