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Why Invest in Air Products?

Profitability, Stability and Growth

The “on-site” business pioneered by Air Products generates secured and steady cashflow.  It calls for long-term take-or-pay contracts not subject to price, volume and variable cost fluctuations.  Air Products has become  the most stable and profitable global industrial gas company due to its greater proportion of the on-site business and the industry leading profit margin.  Supported by the pristine balance sheet and strong cash flow, Air Products can combine this stability and profitability with substantial growth potential by deploying capital.
 

Stability

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

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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

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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

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Experience Executing Large/Complex Projects

• Ability to conceive, finance, engineer, build and operate megaprojects around the world

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Global Reach, Diverse End Markets

• Operating in over 50 countries
• Supplying over 30 different industries

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Local Facilities Serving Broad Customer Base

• Industrial gas is a local business
• More than 750 facilities serving over 170,000 customers

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Experience and History

• Nearly 8 decades in the business
• Developed in-depth knowledge of the industrial gas processes and the best-in-class project execution and operating expertise

Profitability

• The most profitable industrial gas company in the world
• EPS CAGR of 14% from 2014 to 2018
• 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 each year since the early 1980s
• Maintaining debt balance to maintain targeted A/A2 rating

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