Air LiquidePress kit

2018

“Our customer-centrictransformationstrategy aims todeliver profitablegrowth overthe long term”

BenoîtPotier, Chairman and CEO

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To pursue a long-term strategy is basic to Air Liquide’s businessmodel. In a world of expanding and accelerating change-markets, customers, geographies, anticipating these changesand knowing where we want to go is imperative. Our vision is fedby the world. We interpret the changes and future opportunitiesfor our company by listening to our customers, suppliers andpartners. Our vision defines our organization and businesses andguides us to create value for our stakeholders - today andtomorrow.

The world leader in gases, technologies and services for Industry and Health, Air Liquide ispresent in 80 countries with approximately 67,000 employees and serves more than 3

million customers and patients. Oxygen, nitrogen and hydrogen are essential smallmolecules for life, matter and energy. They embody Air Liquide’s scientific territory andhave been at the core of the company’s activitiessince its creationin1902.

Air Liquide’s ambition is to lead its industry, deliver long term performance and contributeto sustainability. The company’s customer-centric transformation strategy aims atprofitable growth over the long term. It relies on operational excellence, selectiveinvestments, open innovation and a network organization implemented by the Groupworldwide. Through the commitment and inventiveness of its people, Air Liquideleverages energy and environment transition, changes in healthcare and digitization, anddeliversgreatervalue to all its stakeholders.

Air Liquide’s revenue amounted to €18.1 billion in 2016 and its solutions that protect lifeand the environmentrepresentedmore than40% of sales.

Air Liquide is listed on the Euronext Paris stock exchange (compartment A) and belongs totheCAC40, EUROSTOXX50 and FTSE4Goodindexes.

The world leader

in gases, technologies and

services for Industry and Health

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Keyfigures

18 135REVENUE IN 2016

in million euros

1 844NET PROFIT IN 2016

in million euros

GAS & SERVICES REVENUE

by World Business LineIN MILLION EUROS

Industrial Merchant

7 565 (44%)

Large Industries

5 037 (29%)

Healthcare

3 111 (18%)Electronics

1 618 (9%)

Europe

6 593 (38%)

Americas6 230 (36%)

Asia-Pacific

3 936 (23%)

Middle East& Africa

572 (3%)

GROUP REVENUEIN MILLION EUROS

more than

3 millionCONSUMERS AND PATIENTS

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17 331Gas &

Services

474Engineering &Construction

330Global

Markets &Technologies

by geographyIN MILLION EUROS

Keyfigures

€288 Mspent on innovationin 2016

Nearly 300patents filedeach year

9research centersworldwide

InnovationResponsibility

ENVIRONMENT AND HEALTH

More than 60%of innovation expensesrelated to air quality, healthand environmental footprint

DIVERSITY

30%are womenof the Group’s engineers and managers

almost 6 000employeescontribute to innovation

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Businesses of Air LiquideINDUSTRIAL MERCHANT

LARGEINDUSTRIES

Partner of choice for the design, engineering and construction of state-of-the-artproduction units worldwide, for Air Liquide and third-party customers, we deliverinnovative technologies and create durable solutions that respond to thechallenges of our customers. Our industrial gas production, energy conversion andgas purification technologies enable customers to benefit from a wide range ofindustrial process operations and optimize the use of natural resources.

HEALTHCARE

ELECTRONICSFrom independent craftsmen to large industrialcompanies, we offer to our customers solutionsadapted to every stage of the production process:industrial and specialty gases, application technologies,welding and safety equipment, and related services.Increasingly, we leverage digital capabilities to providea simple and reliable experience to our customers.Inventiveness, strong customer proximity andrelationships guide our teams’ commitment to movingindustries forward. The applications are infinite -inerting, weld cutting, food cryogenics, oxy-combustion, water treatment - with permanentdevelopment.

We provide our customers with industrial gas solutionsessential to their own production, as well astechnologies that deliver performance and energyefficiency. Our unmatched networks of production unitslinked to pipelines worldwide enable us to supply gasesto the world’s major industrial basins and guaranteecustomers a high level of reliability and uninterruptedsupply of gas over the long term.

As a recognized leader in medical gases, homehealthcare, hygiene products and healthcare specialtyingredients, we provide to healthcare professionals andpatients customized and effective products andservices, which contribute to protect vulnerable lives.Present in the continuum of care from hospital tohome, we accompany 1.4 million patients in the worldand we strive to constantly improve our offer in order tobetter respond to the needs of patients and healthcareprofessionals.

A world reference in molecule design, manufacturingand delivery, we contribute to the innovation of theworld’s most advanced companies in the electronicsindustry. Present in the markets of semiconductors,photovoltaics and flat panel displays, our 3,000

employees continuously share our customers’ ambitionto push the boundaries of what is possible. Workingclosely with each customer, we engineer innovative andcost-effective solutions and keep improving ourproducts and processes to move nanotechnologyforward. By designing the infinitely small, we enable ourcustomers to think amazingly big.

44%of Gas & Services

revenue

29%of Gas & Services

revenue

18%of Gas & Services

revenue

9%of Gas & Services

revenue

ENGINEERING & CONSTRUCTION

GLOBAL MARKETS & TECHNOLOGIES

The «Global Markets & Technologies» activity, created in 2015, focuses on newmarkets requiring a global approach – those relating to the energy transition, suchas hydrogen energy; markets with high technology content (aerospace, space); andthose relating to the maritime sector, such as offshore platforms or maritimetransport of high value-added molecules. We incubate new activities, relying onscience, technologies, business models and digital usages.

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Air Liquidein Russia

2018

Air Liquidein Russia

• One of the leading players in the Russian industrial gases

market

• World leader in gases for industry, health and the

environment

• In 2005, Air Liquide LLC, the Russian subsidiary for

production and sale of industrial gases was founded

• Today, the company operates 15 industrial sites in key

regions of Russia

• 650+ employees supply products and services to over 1,500

Russian and international customers

• Over the years, Air Liquide has already committed to

investing more than €450 million in Russia

• Air Liquide has been offering cutting-edge air separation

units (ASU), chemical technologies and project

management services to Russian enterprises since 1989

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Air Liquide and Severstal

Air Liquide Severstal was created in 2005, it is a joint venture inwhich Air Liquide holds 75% and Severstal 25%. It owns andoperates two Air Separation Units to supply industrial gases to theSeverstal steel production site in Cherepovets (Vologda region,Russia).

The first Air Separation Unit with capacity of 3,000 tonnes ofoxygen per day is the largest in the world in metallurgical industry. Itwas successfully started up in July 2007.

In 2010, Air Liquide and Severstal announced the enlargement ofindustrial gases production facilities for Cherepovets MetallurgicalComplex: the new ASU with capacity of 2,000 tonnes of oxygen perday was built. It was designed in accordance with Air Liquideinnovative technologies.

The cooperation between two companies goes forward in otherregions: in Balakovo (Saratov region) Air Liquide built an airseparation unit to produce industrial gases, which supplies oxygen,nitrogen and argon to Severstal’s new steel plant. The capacity ofthis ASU is more than 300 tonnes per day.

Air Separation Unit №12

produces 2,000 tonnesper day

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Air Liquidein Tatarstan

Air Liquide Alabuga (Alabuga Special Economic Zone,Tatarstan) was created in 2009 to realize a new project of AirLiquide in Russia. The main customer is Preiss-Damler-Tatneft– Alabuga Fiberglass that uses gaseous oxygen in itstechnologyof fiberglass production.

Air Liquide started the exploitation of its new state-of-the-artAir Separation Unit with capacity of 240 tonnes of oxygen perday in 2012. Besides supplying gaseous oxygen for Preiss-Damler-Tatneft – Alabuga Fiberglass also produces liquidoxygen and nitrogen for industrial customers in the region.Oxygen and nitrogen are widely used in machinery and metalworks, food, electronics, medicine and in other activities. Thisplant plays an important role in modernization of industrialinfrastructure of the region. It offers competitive productstogether with safe and modern methods of delivery andstorage of industrialgases.

The total amount of Air Liquide investments into productionfacilities and logistics is 35 million euro.

10 / Press kit, 2018

Key dates of the project:

• May 14, 2009 – signing of the contractwith Preiss-Damler-Tatneft – AlabugaFiberglass to supply industrial gases,first public announcement aboutplanned investments

• July 1, 2010 – start-up of the firstphase of the plant to produce oxygenand nitrogen in SEZ Alabuga

• May 16, 2012 – start-up of the secondphase of the plant

• 2014 – start-up of the third phase ofthe plant which will produce hydrogenand nitrogen-hydrogen solution forZAO Trakya Glass Rus

Air Liquide in Russia:

key milestones

1911: firstAir SeparationUnit (ASU) in Russia was sold

1943-1944: 18 ASUs were sold to the Ministry of Defenseof theUSSR

1989: opening of a representative office for equipment sales in Russiaand Ukraine (engineering and equipment)

1991: creation of SOVAL – a subsidiary for production and sale of raregases

1995: first Air Liquide investment in a nitrogen unit for a paint andglazing factory inZagorsk

1996-1998: sales of a nitrogen generator (membrane) anda hydrogen generator for the chemical and petrochemical industries

1998: modernization of a RussianASU in Ukraine

2000-2004: sales of cryogenic units and membranes in Russia forSibur, Akron, Lukoil, Salavatnefteorgzintez, Angarsk PetrochemicalCompany, MoscowOIl Refinery,CherepovetsAzot,Metafrax and etc.

2005: creation of Air Liquide LLC, a Russian subsidiary for productionand sales of industrial gases

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Air Liquide in Russia:

key milestones

2005-2008: signing of long term contracts for industrial gasesproduction and supply with metallurgical works of Severstal in Cherepovets,Knauf Insolation (fiberglass production, Stupino), Guardian Steklo Ryazan(glass industry, Ryazan), P-D Tatneft – Alabuga Steklovolokno (glassindustry, Elabuga, Special Economic Zone «Alabuga» in the Republic ofTatarstan) and several agreements with Mikron, the largest Russian semi-conductors producer

2008: founding of Sever Liquid Gas in Saint-Petersburg with core activityto supply a wide range of industrial gases to the customers in North-Westregion

2010: start-up of the first stage of ASU for oxygen and nitrogenproduction in Elabuga, Special Economic Zone Alabuga in the Republic ofTatarstan

Production sites Head office

Moscow

Tatarstan Republic

Russia

SaratovKazakhstan

Cherepovets

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Air Liquide in Russia:

key milestones

2011: announcement of Air Liquide project in Balakovo (Saratov region),ASU forSeverstal

2012: acquisition of Logika plant in Zelenograd, inauguration of thesecond phase of ASU in Elabuga, start-up of the second ASU of AL Severstaland FillingStation in Kolpino, acquisition of Lentekhgaz in St. Petersburg

2014: Air Liquide Balakovo, Air Liquide Kstovo and APSA in Zelenograd(Mikron) were put into operation and the third phase of the plant inAlabuga was launched

2015: launch of the SA (Swing Absorbtion unit) for Knauf andelectrolyser for Hevel

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Biographies

Bruno PonsonDirector General of Air Liquide in Russia

•Graduated from Ecole nationale des Ponts et Chaussées in Paris

• Speaks English, Italian and German

Started his career at Air Liquide Groupin 1997.

Worked within Engineering& Construction, Large Industries andIndustrial Merchant WBLs.

In 2015-2017, occupied the position ofDirector General of Air Liquide inUkraine.

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Biographies

Dmitry KuznetsovStrategic Projects Director of Air Liquide in Russia

•Graduated from Kazan State Technological University

• Speaks English and French

In 2007, started his career at Air LiquideGroup in Russia as Sales Vice-President.

Since 2008, occupies the position ofGeneral Manager of Air Liquide Kstovo.

In 2010, was nominated StrategicProjects Director at Air Liquide inRussia, as well as General Manager ofAir Liquide Balakovo.

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Moscow OfficeVorontsovskaya St., 17

Tel.: +7 (495) 641-28-98

FOR FURTHER INFORMATION

Communications DepartmentEkaterina Kebal, Communications Manager

+7 (495) 641-28-98

ekaterina.kebal@airliquide.com

www.airliquide.com/ru/russia