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In line with its ADVANCE plan and raised performance ambition, Air Liquide achieved in the first half of 2024 a significant improvement of +100 basis points in its operating margin excluding the energy impact. Efficiencies have now reached 233 million euros, thanks to approximately 1,000 operational efficiency projects, to business portfolio management and to price adjustments in Industrial Merchant, based on the ability of the teams to create added value for our customers.

The Group’s net profit recurring⁽²⁾ excluding currency impact rose by +16%, and +5% excluding the contribution of Argentina in the first half of 2024. Our cash flow⁽³⁾ remained very strong with a ratio to sales of 24%, enabling financing of the investments needed for future growth. At 10.7% at the end of June, recurring ROCE⁽⁴⁾ has continued to improve, exceeding 10% in line with the ADVANCE objectives.

The investment backlog remains at a very high level of 4.1 billion euros, and is well diversified in terms of geographies. The portfolio of 12-month investment opportunities increased to 4 billion euros, mainly in the Americas and Europe. More than 40% of these are related to the energy transition. The Group is thus successfully pursuing the development of large-scale projects, in particular in the fields of decarbonization and semiconductors.

In 2024, Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates⁽⁵⁾.

Group revenue totaled 13,379 million euros in the 1^st half of 2024, posting a growth of +2.6% on a comparable basis. The contribution of Argentina⁽⁶⁾ to the comparable growth is of +2.1%. The Group’s published sales were down -4.3% in the 1^st half of 2024, affected by unfavorable energy (-3.5%) and currency (-3.4%) impacts. There was no significant scope impact.

Gas & Services revenue reached 12,796 million euros in the 1^st half, up by +2.6% on a comparable basis (including a contribution of Argentina of +2.2%). As published revenue for Gas & Services were down -4.5% in the 1^st half of 2024, penalized by unfavorable energy (-3.7%) and currency (-3.4%) impacts. There was no significant scope impact in the 1^st half.

Growth⁽⁷⁾ in the Industrial Merchant business (+2.0%) continued in the 1^st half of 2024 with a price effect of +4.2% in addition to the sharp increase (+10.7%) in the 1^st half of 2023, and gas volumes down slightly. Revenue from Large Industries (+1.1%) benefited from the start-up of two large units in the 1^st quarter and stronger demand from Chemicals customers in Europe and the United States in the 2^nd quarter, but was impacted by the sale of a cogeneration unit in Europe and by customer turnarounds. The Healthcare business was the growth driver in the 1^st half-year, with an increase in sales of +9.1%, supported by the growth of all therapies in Home Healthcare and an increase in the price of medical gases in an inflationary environment. Finally, in Electronics (+0.3%), sales returned to growth in the 2^nd quarter and offset the decline observed in the 1^st quarter reflecting the high basis of comparison at the beginning of 2023.

• Gas & Services revenue in the Americas reached 5,175 million euros in the 1^st half of 2024 and increased by +7.9% (including the contribution of Argentina for +5.7%). All businesses grew in the region. Large Industries (+8.1%) benefited from the start-up of a production unit and demand that firmed up in the 2^nd quarter. In Industrial Merchant, revenue increased by +5.5%, supported by a price effect (+7.3%) that strengthened in the 2^nd quarter. The growth was very strong in Healthcare (+23.3%). In the Electronics business (+9.2%), sales of Carrier Gases and of Equipment & Installations posted double-digit growth.

• In Europe, sales were down slightly by -1.3% in the 1^st half of 2024 and reached 4,475 million euros. In Large Industries (-1.7%), excluding the sale of a cogeneration unit in the first quarter, revenue was up. In Industrial Merchant (-5.2%), volumes contracted but the price effect improved in the 2^nd quarter. The Healthcare business posted solid sales growth (+4.4%), supported by the development of Home Healthcare and Medical Gases.

• Revenue in the Asia Pacific region was nearly stable (-0.8%) in the 1^st half of 2024 and amounted to 2,593 million euros. In Large Industries (-0.9%), the start-up of a new unit in March partially offset customer turnarounds. Industrial Merchant’s sales (-0.6%) were impacted by the marked decline in helium sales, which was largely offset by the increase in volumes of other gases. Electronics revenue was also flattish (-0.6%), with growth in Carrier Gases and Advanced Materials sales offsetting the decline in Equipment & Installation sales.

• Revenue in the Middle East & Africa region increased sharply by +7.1% to 553 million euros in the 1^st half of 2024. All business lines grew.

Sales in the Global Markets & Technologies business amounted to 386 million euros in the 1^st half of 2024, a decrease of -2.0% due in particular to the divestiture of the technological activities for the Aeronautics sector. Order intake amounted to 416 million euros.

Consolidated revenue from Engineering & Construction totaled 197 million euros in the 1^st half of 2024, up +9.9% compared to the 1^st half of 2023. Order intake for the Group and third-party customers amounted to 557 million euros in the 1^st half.

The Group's operating income recurring (OIR) reached 2,601 million euros in the 1^st half of 2024. It increased by +4.9% and by +10.6% on a comparable basis⁽⁸⁾, which is significantly higher than the comparable sales growth of +2.6%.

The operating margin (OIR to revenue) stood at 19.4%, a strong improvement of +100 basis points excluding the energy impact (no impact from Argentina).

Efficiencies⁽⁹⁾ contributed to this margin improvement and amounted to 233 million euros, up sharply by +13.1% compared to the 1^st half of 2023. Management of prices and of the portfolio of activities also contributed to the margin improvement.

Net profit (Group share) amounted to 1,681 million euros in the 1^st half of 2024, down -2.4% as published. In the absence of significant non-recurring items⁽⁹⁾ in the 1^st half of 2024, net profit recurring (Group share)⁽⁹⁾ was also 1,681 million euros, up +3.3% on a reported basis. Excluding currency impact, net profit recurring (Group share)⁽⁹⁾ was up by +16.0% and increased by +5.0% when excluding the contribution of Argentina. Net earnings per share amounted to 2.92 euros per share, a decline of -2.3% compared with the 1^st half of 2023, in line with the change in net profit (Group share) as published. Recurring net earnings per share were up +3.2%.

Cash flows from operating activities before changes in working capital amounted to 3,155 million euros during the 1^st half of 2024, down by -1.7%. This amounted to a high level of 23.6% of sales. Calculated from a net profit showing a change of -2.4% as published, the -1.7% decrease of the cash flows from activities before changes in working capital is mainly explained by higher current taxes in the 1^st half of 2024 compared with those of 2023 which benefited from favorable exceptional items.

Net debt at June 30, 2024 reached 10,156 million euros, a decrease of 394 million euros compared with June 30, 2023 and an increase of 935 million euros compared with December 31, 2023, following the payment of more than 1.7 billion euros in dividends in May. The net debt-to-equity ratio, adjusted for the seasonal effect of the dividend payment, reached 35.2%.

At 10.7%, recurring ROCE⁽⁹⁾ remained above the target of more than 10% in the Advance strategic plan, and was up sharply by +50 basis points compared to the 1^st half of 2023.

In the 1^st half-year, the Group continued to decarbonize its assets. In particular, Air Liquide announced long-term power purchase agreements (PPAs) for the supply of 500 GWh of renewable electricity per year and has decided on the electrification of a third Air Separation Unit in China. A Cryocap^TM carbon capture unit is under construction to decarbonize the Group’s largest hydrogen production unit in Europe. Furthermore, in the 1^st half-year, Air Liquide continued to develop projects that will significantly reduce the carbon footprint of its customers.

In the 1^st half of 2024, industrial and financial investment decisions amounted to 1,630 million euros.

The investment backlog maintained a very high level of 4.1 billion euros in the 1^st half of 2024, up compared to 3.5 billion euros in the 1^st half of 2023.

The additional contribution to sales of unit start-ups and ramp-ups totaled 108 million euros in the 1^st half of 2024.

The portfolio of 12-month investment opportunities reached a record level of 4.0 billion euros at the end of June 2024. This reflects the dynamism of project development, particularly in the energy transition which represents more than 40% of the portfolio, and in the Electronics activity.

The Air Liquide Board of Directors met on July 25, 2024. During this meeting, the Board reviewed the consolidated financial statements ending June 30, 2024. Limited review procedures were completed with respect to the consolidated interim financial statements, and an unqualified review report is in the process of being issued by the statutory auditors.

Table of Contents of the activity report

H1 2024 PERFORMANCE 7

Key Figures 7
Income Statement 8
Change in Net debt 18
Extra-financial performance 19

INVESTMENT CYCLE 20

RISK FACTORS 22

OUTLOOK 22

APPENDICES 23

Performance indicators 23
Calculation of performance indicators (Semester) 24
Calculation of performance indicators (Quarter) 27
2nd quarter 2024 revenue 27
Geographic and segment information 28
Consolidated income statement 29
Consolidated balance sheet 30
Consolidated cash flow statement 31
Sales, Operating Income Recurring and investments key figures synthesis 33

H1 2024 PERFORMANCE

Unless otherwise stated, all variations in revenue outlined below are on a comparable basis, excluding currency, energy (natural gas and electricity) and significant scope impacts.

Key Figures

Income Statement

REVENUE

Group

Group revenue totaled 13,379 million euros in the 1^st half of 2024, posting a growth of +2.6% on a comparable basis. The contribution of Argentina⁽¹⁰⁾ to the comparable growth is of +2.1%. Global Markets & Technologies sales were down by -2.0% due in particular to the divestiture of the technological activities for the Aeronautics sector. Engineering & Construction revenue from third party customers increased by +9.9%.

The Group’s published sales were down -4.3% in the 1^st half of 2024, affected by unfavorable energy (-3.5%) and currency (-3.4%) impacts. There was no significant scope impact.

Gas & Services

Gas & Services revenue reached 12,796 million euros in the 1st half, up by +2.6% on a comparable basis (including a contribution of Argentina of +2.2%).

Growth in the Industrial Merchant business (+2.0%) continued in the 1^st half of 2024 with a price effect of +4.2% in addition to the sharp increase (+10.7%) in the 1^st half of 2023, and gas volumes down slightly. Revenue from Large Industries (+1.1%) benefited from the start-up of two large units in the 1^st quarter and stronger demand from Chemicals customers in Europe and the United States in the 2^nd quarter, but was impacted by the sale of a cogeneration unit in Europe and by customer turnarounds. The Healthcare business was the growth driver in the 1^st half-year, with an increase in sales of +9.1%, supported by the growth of all therapies in Home Healthcare and an increase in the price of medical gases in an inflationary environment. Finally, in Electronics (+0.3%), sales returned to growth in the 2^nd quarter and offset the decline observed in the 1^st quarter reflecting the high basis of comparison at the beginning of 2023.

As published revenue for Gas & Services were down -4.5% in the 1^st half of 2024, penalized by unfavorable energy (-3.7%) and currency (-3.4%) impacts. There was no significant scope impact in the 1^st half.

Americas

Gas & Services revenue in the Americas reached 5,175 million euros in the 1^st half of 2024 and increased by +7.9% (including the contribution of Argentina for +5.7%). All businesses grew in the region. Large Industries (+8.1%) benefited from the start-up of a production unit and demand that firmed up in the 2^nd quarter. In Industrial Merchant, revenue increased by +5.5%, supported by a price effect (+7.3%) that strengthened in the 2^nd quarter. The growth was very strong in Healthcare (+23.3%). In the Electronics business (+9.2%), sales of Carrier Gases and of Equipment & Installations posted double-digit growth.

• Large Industries saw revenue growth of +8.1% in the 1^st half-year 2024. In the United States, air gas volumes benefited from the start-up of a major new unit in the 1^st quarter. In the 2^nd quarter, demand for hydrogen strengthened in the Chemicals sector and there were fewer customer maintenance turnarounds than at the beginning of the year. In Latin America, hydrogen volumes were down due to the nationalization of a production unit in Mexico at the end of 2023.

• Sales in the Industrial Merchant business posted an increase of +5.5%. The price effect (+7.3%) increased over the half-year, from +6.5% in the 1^st quarter to +8.1% in the 2^nd quarter. It benefited from proactive price campaigns, particularly in the United States (50% of the +8.1% increase in the 2^nd quarter) and in Argentina to counter hyperinflation (40% of the +8.1% increase). Gas volumes (excluding hardgoods) remained resilient. In the United States, the trend is improving in most industrial markets, which remain price-driven. Gas volumes were up mainly in the Aeronautics and Research sectors.

• In the Healthcare business, sales rose sharply by +23.3% in the 1^st half-year 2024, driven by the strong increase in prices in the United-States (+5.8%) in Proximity care and in Argentina in a context of hyperinflation. In the 1^st semester, medical gas volumes were slightly up in the United-States and the number of new Home Healthcare patients increased in Canada and in Latin America.

• Electronics posted a sharp increase in revenue of +9.2% in the 1^st half-year. Carrier gas sales saw a double-digit increase, supported by the ramp-up of new units and the increase in helium volumes. Sales of Equipment & Installations reached a historically high level in the 1^st half-year 2024, while sales of materials remained down.

Europe

In Europe, sales were down slightly by -1.3% in the 1^st half of 2024 and reached 4,475 million euros. In Large Industries (-1.7%), excluding the sale of a cogeneration unit in the first quarter, revenue was up. In Industrial Merchant (-5.2%), volumes contracted but the price effect improved in the 2^nd quarter. The Healthcare business posted solid sales growth (+4.4%), supported by the development of Home Healthcare and Medical Gases.

• In the 1^st half of 2024, revenue from Large Industries was down by -1.7%. Volumes increased in Chemicals compared to a low level in the 1^st half of 2023. They remained stable overall in Steel and Refining. The comparable growth would be positive by excluding the divestiture of a cogeneration unit in the 1^st quarter (approximately -4% impact in the 1^st half).

• Sales in the Industrial Merchant business declined by -5.2% following growth of +18.1% in the 1^st half of 2023. The price effect (-1.2%) improved in the 2^nd quarter (-0.5%) compared to -1.9% in the 1^st quarter. The decrease in the price of bulk (indexed to energy prices) was largely offset by the proactive increase in the price of packaged gases, with a specific focus on the creation of value through innovation and on the quality of service to customers. Volumes were down with the exception of liquefied CO₂. They increased in the Manufacturing, Automotive and Aeronautics sectors but declined in the Food and Glass industry markets.

• In the Healthcare business, sales increased by +4.4% in the 1^st half-year. Home Healthcare continued its dynamic growth, with a sharp increase in the number of patients cared for, particularly for sleep apnea and diabetes. Growth in sales of medical gases remained solid, supported by a balanced contribution from volumes and prices in an inflationary context.

Asia Pacific

Revenue in the Asia Pacific region was nearly stable (-0.8%) in the 1^st half of 2024 and amounted to 2,593 million euros. In Large Industries (-0.9%), the start-up of a new unit in March partially offset customer turnarounds. Industrial Merchant’s sales (-0.6%) were impacted by the marked decline in helium sales, which was largely offset by the increase in volumes of other gases. Electronics revenue was also flattish (-0.6%), with growth in Carrier Gases and Advanced Materials sales offsetting the decline in Equipment & Installation sales.

• Large Industries revenue was down slightly by -0.9% in the 1^st half of 2024. In China, several customer turnarounds were offset by the contribution of the start-up of a large hydrogen production unit in March. In the rest of Asia, demand was relatively stable.

• In Industrial Merchant, revenue was nearly stable (-0.6%) with a neutral price effect (+0.1%) in the 1^st half-year. It turned negative in the 2^nd quarter (-1.1%), impacted by the decrease in helium prices. In China, the Automotive, Manufacturing and Secondary Electronics sectors notably drove volume growth excluding helium; in particular, the volumes of packaged gases increased sharply (+12%). In the rest of Asia, the increase in sales benefited from a positive price effect and an increase in volumes, particularly of bulk.

• Sales in Electronics were flattish (-0.6%) in the 1^st half: down by -1.7% in the 1^st quarter compared to a high basis of comparison in 2023, they increased by +0.6% in the 2^nd quarter. The increase in Carrier Gases sales, with the start-up of three new units in the 1^st half of 2024, and advanced materials, almost completely offset the low sales of Equipment & Installations.

Middle East and Africa

Revenue in the Middle East & Africa region increased sharply by +7.1% to 553 million euros in the 1^st half of 2024. All business lines grew. In Large Industries, hydrogen volumes in Saudi Arabia and air gas volumes in Egypt were both high. The sharp growth in Industrial Merchant sales was supported by a strong price effect. In Healthcare, the rise in medical gas volumes in South Africa and the development of diabetes treatment in Saudi Arabia were the main contributors to revenue growth.

Global Markets & Technologies

Sales in the Global Markets & Technologies business amounted to 386 million euros in the 1^st half of 2024, a decrease of -2.0% on a comparable basis. The increase in sales of technological equipment (Turbo-Braytons, biogas equipment, hydrogen refueling stations, etc.) and the increase in hydrogen volumes for mobility in the United States partially offset the impact of the divestiture of the technological activities for the Aeronautical sector at the end of February and the decrease in biogas prices.

Order intake for Group projects and third-party customers amounted to 416 million euros. This includes more than 40 Turbo-Brayton LNG reliquefaction units, special systems for the Electronics and Space industries, and equipment for the transportation and distribution of hydrogen and air gases.

Engineering & Construction

Consolidated revenue from Engineering & Construction totaled 197 million euros in the 1^st half of 2024, up +9.9% compared to the 1^st half of 2023.

Order intake for the Group and third-party customers amounted to 557 million euros in the 1^st half. The first phase of the Group’s major project with ExxonMobil in Baytown, Texas (United States), which involves the construction of four large modular Air Separation Units, contributes to this amount. Order intake also includes installations for the hydrogen supply chain. Group orders represent a large majority of new projects.

OPERATING INCOME RECURRING

Operating income recurring before depreciation and amortization totaled 3,828 million euros, an increase of +3.2% as published compared with the 1^st half of 2023. Purchases were down significantly by -13.3%, due to the decrease in energy costs. Purchases of materials and equipment were stable and the increase in personnel costs was limited to +2.1% in an inflationary context. The net balance of other operating income and expenses improved by +0.6%.

Depreciation and amortization amounted to 1,227 million euros and were stable (-0.2%) compared with the 1^st half of 2023, with the impact of contract renewals and the end of depreciation and amortization offsetting the start-up of new units.

The Group's operating income recurring (OIR) reached 2,601 million euros in the 1^st half of 2024. It increased by +4.9% and by +10.6% on a comparable basis⁽¹¹⁾, which is significantly higher than the comparable sales growth of +2.6%. The operating margin (OIR to revenue) stood at 19.4%, a strong improvement of +100 basis points excluding the energy impact (no impact from Argentina). The increase was +170 basis points as published due in particular to the accretive effect linked to the decrease in energy costs contractually passed through to Large Industries customers.

Efficiencies⁽¹²⁾ contributed to this margin improvement and amounted to 233 million euros, up sharply by +13.1% compared to the 1^st half of 2023. The Group's transformation programs accounted for a quarter of the efficiencies and included in particular the rollout of digital resources to support operations and the optimization of the supply chain, the implementation of shared service centers and the reorganization of the Home Healthcare businesses in France. The rollout of a single ERP for the Europe region and a new simplified Group organization will contribute to future efficiencies. Efficiencies related to purchases, which account for more than a quarter of the total, were high despite an inflationary context. In addition, the cross-functional program of continuous improvement actively supported the achievement of more than a third of efficiencies. It includes numerous industrial efficiency projects, deployed thanks to a digital platform to help replicate initiatives and a network of committed experts.

Management of prices and of the portfolio of activities also contributed to the margin improvement.

Gas & Services

Operating income recurring for the Gas & Services businesses amounted to 2,719 million euros, an increase as published of +5.1% compared with the 1^st half of 2023. The operating margin as published stood at 21.2%, a significant improvement of +110 basis points excluding the energy impact compared with the 1^st half of 2023.

Prices in the Industrial Merchant business were up +4.2% in the 1^st half, demonstrating the Group’s ability to pass through cost increases. Prices were also up in Large Industries and Healthcare.

Operating income recurring in the Americas reached 1,112 million euros over the 1^st half of 2024, an increase of +8.1% as published. Excluding the energy passthrough impact, the operating margin increased by +120 basis points compared with the 1^st half of 2023. The Industrial Merchant business and, to a lesser extent, Healthcare made the strongest contribution, notably through significant efficiencies and price increases.

Operating income recurring in Europe amounted to 922 million euros, an increase as published of +8.9% compared with the 1^st half of 2023. Excluding the energy passthrough impact, the operating margin improved very significantly by +170 basis points compared with the 1^st half of 2023. In Industrial Merchant, significant efficiencies and accretive price management supported margin growth. The efficiencies generated in Healthcare and the payment of an indemnity by a Large Industries customer also contributed to this.

In Asia Pacific, operating income recurring stood at 564 million euros, a decrease as published of -7.7%. Excluding the energy passthrough impact, the operating margin decreased by -50 basis points. In the 1^st half of 2023, the payment of an indemnity by a Large Industries customer contributed significantly to the improvement in the margin. Excluding this exceptional effect in 2023, the operating margin increased in the 1^st half of 2024, driven by efficiencies generated in the Industrial Merchant, Electronics and Large Industries businesses, despite the dilutive effect of lower helium volumes and prices.

Operating income recurring in the Middle East and Africa region amounted to 121 million euros, representing an increase of +19.6% as published compared with the 1^st half of 2023. Excluding the energy passthrough impact, the operating margin grew by +320 basis points. Efficiencies and higher volumes across all businesses contributed to this improvement. The increase in prices, particularly in Industrial Merchant, also contributed to the margin improvement.

Engineering & Construction

Operating income recurring for Engineering & Construction amounted to 19 million euros in the 1^st half of 2024, or 9.9% of sales, in line with medium-term business objectives.

Global Markets & Technologies

Operating income recurring for Global Markets & Technologies stood at 63 million euros, a slight decrease of -1.4% compared with the 1^st half of 2023. The operating margin reached 16.4%, an increase of +20 basis points compared with the 1^st half of 2023.

Research & Development and Corporate costs

Research & Development expenses and Corporate costs totaled 201 million euros, a rise of +6.4% compared with the 1^st half of 2023.

NET PROFIT

Other operating income and expenses showed a net balance of -87 million euros in the 1^st half of 2024. Other operating expenses amounted to -125 million euros and notably included restructuring costs. Other operating income amounted to 38 million euros and mainly reflected capital gains on the divestiture of businesses. As a reminder, in the 1^st half of 2023, other operating income and expenses showed a positive net balance of 33 million euros which benefited from the sales of the Group’s stake in Hydrogenics.

Financial income and expenses amounted to -216 million euros, stable compared with -211 million euros in the 1^st half of 2023. It included net finance costs of -129 million euros, up +9.3% compared to the 1^st half of 2023, which benefited from the proceeds generated by the early redemption of bonds in US dollars. When excluding this exceptional proceeds from the 2023 comparison basis, net finance costs decrease by -7.8%. The average cost of net debt of 3.4% was only slightly higher than in the 1^st half of 2023 (3,3%⁽¹³⁾), despite the increase in interest rates, 81%⁽¹⁴⁾ of the Group’s gross debt being at fixed rates at the end of June 2024. Other financial income and expenses amounted to -87 million euros, compared to -93 million euros in the 1^st half of 2023.

The tax expense was 543 million euros, corresponding to an effective tax rate of 23.6%, slightly up compared to the 1^st half of 2023 (23.4%). These relatively low effective rates are explained by non-recurring items in the 1^st half of 2024 and a reduced tax rate on the capital gain on the divestiture of the Group’s stake in Hydrogenics in the 1^st half of 2023.

The share of profit of associates amounted to -5 million euros.

The share of minority interests in net profit totaled 69 million euros, up from 44 million euros in the 1^st half of 2023, amount impacted by the impairment of an intangible asset in a company not 100% owned by the Group.

Net profit (Group share) amounted to 1,681 million euros in the 1^st half of 2024, down -2.4% as published. In the absence of significant non-recurring items⁽¹⁵⁾ in the 1^st half of 2024, net profit recurring (Group share)⁽¹⁶⁾ was also 1,681 million euros, up +3.3% on a reported basis. Excluding currency impact, net profit recurring (Group share)⁽¹⁶⁾ was up by +16.0% and increased by +5.0% when excluding the contribution of Argentina.

Net earnings per share amounted to 2.92 euros per share, a decline of -2.3% compared with the 1^st half of 2023, in line with the change in net profit (Group share) as published. Recurring net earnings per share were up +3.2%. The average number of outstanding shares used for the calculation of net earnings per share as of June 30, 2024 was 576,342,279.

Change in the number of shares

Change in Net debt

Cash flows from operating activities before changes in working capital amounted to 3,155 million euros during the 1^st half of 2024, down by -1.7%. This amounted to a high level of 23.6% of sales. Calculated from a net profit showing a change of -2.4% as published, the -1.7% decrease of the cash flows from activities before changes in working capital is mainly explained by higher current taxes in the 1^st half of 2024 compared with those of 2023 which benefited from favorable exceptional items.

The limited increase of 282 million euros in the working capital requirement (WCR) compared to December 31, 2023 reflects in particular the increase in helium reserves stored in the Group’s cavern in Germany, a decrease in trade payables due to the lower energy prices in the period and a slight increase in trade receivables. Net cash flows from operating activities after changes in working capital amounted to 2,845 million euros, a decrease of -3.9% compared with the 1^st half of 2023.

Gross capital expenditure totaled 1,699 million euros. It includes payments on industrial investments in the amount of 1,656 million euros and financial investments in the amount of 43 million euros. The proceeds from sale of assets amounted to 97 million euros and notably include the divestiture of technological activities for the Aeronautics sector (Global Markets and Technologies). They compare with 252 million euros in the 1^st half of 2023, which included the sale of the Group’s stake in Hydrogenics and of the Large Industries business in Trinidad and Tobago. Net capital expenditure⁽¹⁷⁾ totaled 1,570 million euros.

Net debt at June 30, 2024 reached 10,156 million euros, a decrease of 394 million euros compared with June 30, 2023 and an increase of 935 million euros compared with December 31, 2023, following the payment of more than 1.7 billion euros in dividends in May. The net debt-to-equity ratio, adjusted for the seasonal effect of the dividend payment, reached 35.2%.

The return on capital employed after tax (ROCE) was 9.8% for the 1^st half of 2024. At 10.7%, recurring ROCE⁽¹⁸⁾ remained above the target of more than 10% in the Advance strategic plan, and was up sharply by +50 basis points compared to the 1^st half of 2023.

Extra-financial performance

In the 1^st half-year, the Group continued to decarbonize its assets by rolling out actions aligned with the three levers: low-carbon energy supply, asset management and CO₂ capture.

In order to reduce its Scope 2 emissions, in the 1^st half-year Air Liquide announced long-term power purchase agreements (PPAs) for the supply of 500 GWh of renewable electricity per year for its units in South Africa, Brazil and Germany.

The Group also decided on the electrification of a third Air Separation Unit in China, which will reduce its Scope 2 emissions by around 340,000 metric tons of CO₂ per year. Air Liquide announced the construction of more energy efficient carrier gas units for an Electronics customer in Singapore and the United States.

In addition, the Group uses high-performance solutions to reduce its direct CO₂ emissions (Scope 1). Thus, a Cryocap^TM carbon capture unit is under construction to decarbonize the Group’s largest hydrogen production unit in Europe.

Furthermore, in the 1^st half-year, Air Liquide continued to develop projects that will significantly reduce the carbon footprint of its customers. In the United States, this includes the first phase of investment in a site for the production of large quantities of low-carbon air gases, allowing the customer to produce hydrogen with a low carbon footprint by capturing and sequestering 7 million metric tons of CO₂ per year. In Europe, Air Liquide received support from the European Commission via a 160 million euro grant for the D'Artagnan project, the central link in the CO₂ capture and sequestration chain, which aims to reduce emissions from the Dunkirk industrial basin (France) by 1.5 million metric tons per year.

Finally, in order to actively contribute to the decarbonization of mobility, the Group decided to invest in the logistics chain downstream of the Normand’Hy electrolyzer in France and created the TEAL joint venture with TotalEnergies, which aims to roll out more than 100 hydrogen refueling stations for trucks in Europe in the next 10 years.

INVESTMENT CYCLE

INVESTMENT DECISIONS AND INVESTMENT BACKLOG

In the 1^st half of 2024, industrial and financial investment decisions amounted to 1,630 million euros, compared with 1,798 million euros in the 1^st half of 2023.

The industrial investment decisions for the 1^st half of 2024 reached 1,587 million euros. In Large Industries, they concern in particular the first investment phase for 120 million euros (out of a total of 850 million US dollars) for the major project announced with ExxonMobil in Baytown, Texas (United States). This involves building four large modular Air Separation Units (LMAs) as part of a long-term contract to supply low-carbon oxygen and nitrogen allowing the customer to produce, in particular, low-carbon hydrogen for the synthesis of ammonia and the decarbonization of existing facilities. These decisions also include the electrification of an existing Air Separation Unit (ASU) in China, which currently consumes steam produced by the customer from coal. It is the third ASU of this type to be electrified in China and will contribute to the reduction of CO₂ emissions accounted for under Scope 2. In the Industrial Merchant business line, the decisions include on-site gas generation units, in particular two units to supply oxygen to a customer in the Pharmaceuticals sector in Europe, as well as investments in the production and distribution of argon in Europe and the United States. The development of the Electronics business continues, notably with the extension of advanced materials production units in the United States and Japan. Lastly, in the Global Markets and Technologies business, decisions mainly concern the logistics chain for hydrogen mobility, downstream of the Normand’Hy electrolyzer in France.

Financial investment decisions totaled 43 million euros in the 1^st half of 2024. They included in particular several small acquisitions in Industrial Merchant in China, the United States, Canada and Italy. They also included a small acquisition in Europe in Home Healthcare and a capital contribution to the joint venture created with TotalEnergies, which will deploy a network of refueling stations for the hydrogen mobility of trucks in Europe.

The investment backlog maintained a very high level of 4.1 billion euros in the 1^st half of 2024, compared to 3.5 billion euros in the 1^st half of 2023. They consisted of more than 80 projects with a balanced geographical distribution. Large Industries accounted for nearly half of these investments and Electronics more than one third.

START-UPS

The main start-ups in the 1^st half of 2024 included:
- to supply customers in Large Industries and Industrial Merchant: a major hydrogen and CO production unit integrating a CO₂ capture and recycling system for Chemicals customers in China, a large air separation unit in the United States, and medium-sized units in Egypt, India and China;
- in the Electronics business, in particular, a large ultra-pure carrier gas plant in Japan and medium scale units in Taiwan and the United States.

The additional contribution to sales of unit start-ups and ramp-ups totaled 108 million euros in the 1^st half of 2024. Over the year, it is expected to be between 230 and 250 million euros, a contribution slightly lower than that initially planned, volumes being lower in a context of soft demand and a limited number of start-ups of new units having been postponed for a few months. In 2025, the additional contribution to sales from unit ramp-ups and start-ups should be more than 250 million euros.

INVESTMENT OPPORTUNITIES

The portfolio of 12-month investment opportunities reached a record level of 4.0 billion euros at the end of June 2024. Projects at the heart of the energy transition represent more than 40% of the portfolio and are located mainly in the Americas, with notably the major project with ExxonMobil in Baytown, Texas (United States), and in Europe, where large electrolyzer and carbon capture projects are in an advanced development phase. Opportunities in Electronics are now spread across Asia, Europe and the United States. The portfolio of opportunities at more than 12 months is growing and has reached a very high level. It includes in particular significant projects in the energy transition and the Electronics sector.

RISK FACTORS

There was no change in risk factors during the first half. Risk factors are described in the 2023 Universal Registration Document on pages 72 to 89.

OUTLOOK

Air Liquide once again delivered a very solid financial performance in the first half of 2024 with a significant increase in its operating margin, supported by the acceleration of structural efficiencies. In a persistently subdued market environment, the Group recorded growth in sales on a comparable basis, reflecting the solidity of its business model. Air Liquide successfully continued the rollout of its ADVANCE strategic plan, for which the margin ambition was raised at the beginning of the year. At a time when the Group has never had so many opportunities related to the energy transition and to the growth of digital and artificial intelligence, it is also preparing for the future, simplifying its organization to improve its performance and developing major projects that will strengthen its long-term growth momentum.

In the first half of 2024, Group sales were up by +2.6% on a comparable basis⁽¹⁹⁾, with a sequential improvement between the first and second quarters. On a published basis, sales were at -4.3%, due to negative currency impacts and lower energy prices - for which variations are contractually passed through to Large Industries customers. Gas & Services, which represent more than 95% of Group revenue, saw an increase of +2.6%⁽¹⁹⁾ on a comparable basis in the first half of 2024, supported in particular by the dynamism of the Healthcare business and the Americas.

In line with its ADVANCE plan and raised performance ambition, Air Liquide achieved in the first half of 2024 a significant improvement of +100 basis points in its operating margin excluding the energy impact. Efficiencies have now reached 233 million euros, thanks to approximately 1,000 operational efficiency projects, to business portfolio management and to price adjustments in Industrial Merchant, based on the ability of the teams to create added value for its customers.

The Group’s net profit recurring⁽²⁰⁾ excluding currency impact rose by +16%, and +5% excluding the contribution of Argentina in the first half of 2024. The cash flows from operating activities before changes in working capital remained very strong with a ratio to sales of 24%, enabling financing of the investments needed for future growth. At 10.7% at the end of June, recurring ROCE⁽²¹⁾ has continued to improve, exceeding 10% in line with the ADVANCE objectives.

The investment backlog remains at a very high level of 4.1 billion euros, and is well diversified in terms of geographies. The portfolio of 12-month investment opportunities increased to 4 billion euros, mainly in the Americas and Europe. More than 40% of these are related to the energy transition. The Group is thus successfully pursuing the development of large-scale projects, in particular in the fields of decarbonization and semiconductors.

In 2024, Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates⁽²²⁾.

APPENDICES

Performance indicators

Performance indicators used by the Group that are not directly defined in the financial statements have been prepared in accordance with the AMF position 2015-12 about alternative performance measures.

The performance indicators are the following:

• Currency, energy and significant scope impacts

• Comparable sales change and comparable operating income recurring change

• Operating margin and operating margin excluding energy impact

• Recurring net profit Group share

• Recurring net profit excluding currency impact

• Net Profit Excluding IFRS16

• Net Profit Recurring Excluding IFRS16

• Efficiencies

• Return on Capital Employed (ROCE)

• Recurring ROCE

Definition of Currency, energy and significant scope impacts

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.

Calculation of performance indicators (Semester)

COMPARABLE SALES CHANGE AND COMPARABLE OPERATING INCOME RECURRING CHANGE

Comparable changes for sales and operating income recurring exclude the currency, energy and significant scope impacts described above.

Contribution of Argentina is of +2.1% to the Group’s sales comparable growth and of +4.4% to the operating income recurring comparable growth. For the Gas & Services activity, the contributions are respectively +2.2% and +4.2%.

Contribution of Argentina is calculated by the difference between the amounts consolidated at Group level and these same amounts consolidated excluding data from Argentina. The same method applies to the Gas & Services activity.

OPERATING MARGIN AND OPERATING MARGIN EXCLUDING ENERGY IMPACT

The operating margin is the ratio of the operating income recurring divided by revenue. The operating margin excluding energy impact corresponds to the operating income recurring (not affected in absolute value by the cost of energy contractually re-invoiced to Large Industries customers) divided by revenue excluding the energy impact to which is attached the corresponding currency impact. The ratio of operating income recurring divided by the revenue (whether restated or not from the energy impact) is calculated with rounding to one decimal place. The variation between 2 periods is calculated as the difference between these rounded ratios, which can result in positive or negative differences compared to a more precise calculation, due to rounding.

RECURRING NET PROFIT GROUP SHARE AND RECURRING NET PROFIT GROUP SHARE EXCLUDING CURRENCY IMPACT

The recurring net profit Group share corresponds to the net profit Group share excluding exceptional and significant transactions that have no impact on the operating income recurring.

The net profit recurring (Group share) excluding currency impact is up +5.0% when excluding the contribution of Argentina. Contribution of Argentina is calculated by the difference between the amounts consolidated at Group level and these same amounts consolidated excluding data from Argentina.

NET PROFIT EXCLUDING IFRS16 AND NET PROFIT RECURRING EXCLUDING IFRS16

Net Profit excluding IFRS16:

Net Profit Recurring excluding IFRS16:

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...).

RETURN ON CAPITAL EMPLOYED - ROCE

Return on capital employed after tax is calculated based on the Group’s consolidated financial statements, by applying the following ratio for the period in question.

For the numerator: net profit excluding IFRS16 - net finance costs after taxes for the period in question.

For the denominator: the average of (total shareholders' equity excluding IFRS16 + net debt) at the end of the past three half-years.

RECURRING ROCE

The recurring ROCE is calculated in the same manner as the ROCE using the recurring net profit excluding IFR16 for the numerator.

Calculation of performance indicators (Quarter)

2^nd quarter 2024 revenue

BY GEOGRAPHY

BY WORLD BUSINESS LINE

Geographic and segment information

Contribution of Argentina is calculated by the difference between the amounts consolidated at Gas & Services level and these same amounts consolidated excluding data from Argentina.

Consolidated income statement

Consolidated balance sheet

Consolidated cash flow statement

The analysis of net cash and cash equivalents at the end of the period is as follows:

Net debt calculation

Statement of changes in net debt

Sales, Operating Income Recurring and investments key figures synthesis

The following tables gather data already available in this report. They complement the key figures indicated in the table on the first page.

Sales

Operating Income Recurring

Investments

The slideshow that accompanies this release is available as of 7:20 am (Paris time) at www.airliquide.com.

Throughout the year, follow Air Liquide on LinkedIn.

UPCOMING EVENTS

2024 3^rd Quarter Revenue:
October 23, 2024

Air Liquide is a world leader in gases, technologies and services for industry and healthcare. Present in 60 countries with 66,300 employees, the Group 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 Group’s activities since its creation in 1902.

Taking action today while preparing the future is at the heart of Air Liquide’s strategy. With ADVANCE, its strategic plan for 2025, Air Liquide is targeting a global performance, combining financial and extra-financial dimensions. Positioned on new markets, the Group benefits from major assets such as its business model combining resilience and strength, its ability to innovate and its technological expertise. The Group develops solutions contributing to climate and the energy transition—particularly with hydrogen—and takes action to progress in areas of healthcare, digital and high technologies.

Air Liquide’s revenue amounted to more than 27.5 billion euros in 2023. Air Liquide is listed on the Euronext Paris stock exchange (compartment A) and belongs to the CAC 40, CAC 40 ESG, EURO STOXX 50, FTSE4Good and DJSI Europe indexes.

__________________________________
¹ See appendix for impact of Argentina.
² Excluding exceptional and significant transactions that have no impact on the operating income recurring, see reconciliation in appendix.
³ Cash flows from operating activities before changes in working capital.
⁴ Based on the recurring net profit, see reconciliation in appendix.
⁵ Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant transactions that have no impact on the operating income recurring.
⁶ See impact of Argentina in Appendix.
⁷ Unless otherwise stated, all variations in revenue outlined below are on a comparable basis, excluding currency, energy (natural gas and electricity) and significant scope impacts.
⁸ Including a contribution of Argentina for +4.4%.
⁹ See definition and reconciliation in appendix.
¹⁰ See impact of Argentina in Appendix.
¹¹ Including a contribution of Argentina for +4.4%.
¹² See definition in appendix.
¹³ The average cost of net debt in the 1^st half of 2023 does not include the exceptional proceeds related to the early redemption of bonds denominated in US dollars.
¹⁴ Temporary increase of Commercial papers (variable rate) in a context of potential liquidity tensions.
¹⁵ With no impact on operating income recurring.
¹⁶ See definition and reconciliation in appendix.
¹⁷ Including transactions with minority shareholders and dividends received from equity affiliates.
¹⁸ See definition and reconciliation in appendix.
¹⁹ See appendix for impact of Argentina.
²⁰ Excluding exceptional and significant transactions that have no impact on the operating income recurring, see reconciliation in appendix.
²¹ Based on the recurring net profit, see reconciliation in appendix.
²² Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant transactions that have no impact on the operating income recurring.

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