L'Air Liquide S.A. (AIQUF) Full Year 2022 Earnings Call Transcript

L'Air Liquide S.A. Full Year 2022 Earnings Conference Call February 16, 2023 4:30 AM ET

Company Participants

Aude Rodriguez - Head of Investor Relations

Francois Jackow - Chief Executive Officer

Jerome Pelletan - Chief Financial Officer

Pascal Vinet - Senior Vice President

Conference Call Participants

Andrew Stott - UBS Investment Bank

Alexander Jones - Bank of America

Laurent Favre - Exane BNP Paribas

Chetan Udeshi - JP Morgan

Peter Clark - Societe Generale

Operator

Good greeting ladies and gentlemen, and invited to nan L'Air Liquide 2022 Results Conference Call. All participants are presently successful listen-mode only until we behaviour nan question-and-answer session, an instruction will beryllium fixed astatine that time. I will now manus complete L'Air Liquide team. Please statesman your meeting. I will beryllium opinionated by.

Aude Rodriguez

Good morning, everyone. This is Aude Rodriguez, Head of Investor Relations. Thank you very overmuch for attending nan telephone today. Francois Jackow and Jerome Pelletan will coming nan afloat twelvemonth 2022 performance. For nan Q&A session, they will beryllium joined coming by Mike Graff connected nan telephone from nan US and Pascal Vinet, Senior VP In Charge of Europe Industries and Africa Middle-East is successful nan room pinch america successful Paris. In nan agenda, our adjacent announcement is connected April 27 for our first 4th review.

Let maine now manus you complete to Francois.

Francois Jackow

Thank you, Aude, and bully morning, everyone. It is my pleasance to beryllium pinch you coming to stock nan highlights of 2022 which was different very bully twelvemonth for L'Air Liquide.

So what are cardinal takeaways of 2022? First, a beardown performance, nan accrued attraction and subject that we person put connected bottommost statement contributions is paying off. We were capable to accommodate quickly to unprecedented situations successful position of pacing agility, strict costs control, rigorous synergy management, to sanction but a fewer cardinal achievements. Some indicators that we will spot adjacent are demonstrating this clearly. Second, successful 2022, we successfully deployed ADVANCE our strategical plan. Having a building connected representation good rooted successful cardinal marketplace trends thief america successful turbulent times to enactment connected track. It provides clear priorities and reinforces nan resilience of nan business model. Third, our worth creation strategy encompasses each stakeholders. In that context, we fortify our activity pinch important advancement successful power condition, while being firmly connected way to present connected our eager ESG commands.

Let's look astatine numbers connected page four. In 2022, we person achieved a beardown comparable income maturation of positive 7% but besides a 70 ground constituent separator improvement, excluding power pass-through effect and contempt an inflationary context. If you recall, we delivered 50 ground points successful nan first half and we accelerated our efforts successful nan 2nd half of nan year. We are demonstrating our beardown committedness to steadily amended our wide profitability, sloppy of nan environment. We besides achieved 17% of recurring nett profit astatine changeless speech rate, a bully capacity and a beardown leverage. At 10.3%, our precocious nonsubjective of having a recurring ROCE supra 10% is achieved 1 twelvemonth up of nan plan. And past but not least, nan operating rate travel connected sales, excluding nan Energy Impact, improved by 110 ground points. This beardown capacity was delivered contempt an adverse environment, which shows, erstwhile more, nan resilience of our business exemplary and nan agility of our teams.

On page five, arsenic you tin see, we are delivering connected our commitments. We are up of ADVANCE trajectory connected 2 of nan 3 main objectives; first, comparable income maturation and past return connected superior employed, and nan 3rd nonsubjective connected Co2 emanation is connected way pinch nan plan. This accomplishment was imaginable acknowledgment to nan highly engaged teams worldwide that I would for illustration really to praise present this morning. And acknowledgment besides of people to a beardown business exemplary delivering resilient growth.

As portion of our strategy, we are positioning ourselves very good for nan future. I americium now connected page six. We seized important maturation opportunities successful 2022 pinch an outstanding 4 cardinal of decided investments. Keep successful mind, it's a grounds level. Over nan past 5 years finance decisions were betwixt 3 billion, and 3.7 cardinal of Euros. This is afloat successful statement pinch nan 16 cardinal finance scheme for nan 4 twelvemonth ADVANCE plan. Electronics projects correspond much than 1 cardinal of nan signed investments successful 2022 and a important stock of nan backlog. These projects will supply recurring rate flows and will substance nan early of nan growth. Innovation besides plays a cardinal domiciled successful task signing. In particular, among each business companies, we person been astatine nan very apical successful position of European backing for power transition, demonstrating nan value and invention contented of our projects. And also, for example, we've been recognized worldwide arsenic nan number 1 world patent holder for hydrogen accumulation and distribution. These show nan truth that we are 1 of nan companies which has nan imaginable to create worth done invention successful nan power transition. Energy modulation projects, by nan way, are already a precocious stock of nan task determination successful 2022.

And connected descent seven, fto maine callback conscionable a fewer tangible business successes past year. So first, arsenic already mentioned, 7 awesome European projects either linked to CCS, aliases hydrogen accumulation by electrolysis, and representing much than 1.8 cardinal Euros committed finance person been approved for European fundings and are underway. On apical of these projects, we signed much than 40 oxy-combustion projects, typically [indiscernible] mini connected tract contracts. Here we supply proprietary solutions to trim our customer depletion of earthy state successful nan discourse of nan hunt of power prices. We pursued nan improvement besides of biogas activity successful Europe, successful nan US, and we person signed our first portion successful China past year.

2022 was besides a twelvemonth of awesome flagship projects. For example, we are creating nan first business pipeline systems pinch each would opportunity shadiness of hydrogen, by adding bluish and greenish hydrogen accumulation units connected 3 of our existing pipeline systems successful Germany, France and Benelux, Netherlands. Another illustration is nan first of its kind, ample amount biohydrogen accumulation for Total Energy caller bio refinery successful France, producing sustainable aviation substance successful a information system scheme. We besides signed 7 partnerships and operational associated task pinch awesome business actors successful hydrogen for mobility, aviation, aliases Co2 transportation. These show that L'Air Liquide is simply a recognized leader successful nan power modulation by trusted partners. The preamble of nan Inflation Reduction Act successful nan US is now creating caller opportunities. As successful Europe, L'Air Liquide is good positioned successful nan US to prime nan champion projects being number 1 successful nan business state marketplace pinch an extended pipeline network. Additionally, our in-house technologies are very good adapted to nan specificities of nan projects successful nan US.

On descent 8 now, I would for illustration to stress that L'Air Liquide is connected way pinch a Co2 emanation trajectory, defined arsenic awesome nonsubjective successful ADVANCE. Indeed, we delivered a unchangeable Co2 emanation trajectory for nan 2nd twelvemonth successful a row. The descent is simply a callback of what was presented during nan Sustainability Day successful 2021 pinch nan 3 levers of our plan, each of them weighting astir one-third. We highlighted present a fewer actions we took successful 2022. First, nether nan umbrella of plus management, finance person been decided, pinch customers to move from steam driven to energy for immoderate of our plus accumulation units successful China. This will lend already to nan simplification by 1% of nan group Co2 emissions. So again regarding action taken to decarbonize our existing assets, we person been selected for subsidies to equip 3 of our hydrogen steam methane reformers pinch c seizure units. The 3rd class is debased c energy sourcing, we signed for awesome PPAs successful 2022, and made awesome advancement successful sourcing much than 400 megawatts of renewable energy astatine nan 2nd tract successful South Africa. All together, actions decided successful 2022 will present a simplification of much than 1.5 cardinal tonnes of Co2 per year. Our efforts are recognized by outer standing agencies and done nan first validation successful nan manufacture by SBTi person our Co2 emanation trajectory.

We show a world activity successful ESG. Indeed our ESG committedness successful ADVANCE spell beyond Co2 emissions trajectory. I americium now connected descent nine. Regarding employees, information remains nan first privilege and we person encouraging results present pinch much than 10% simplification successful mislaid clip accidents. Also much than 40% of our labor use now from a communal ground of attraction coverage, good connected way to scope 100% successful 2025. We are acting besides for world society, providing entree to aesculapian oxygen to 1.8 cardinal of patients successful debased and mediate income countries, reaching 800,000 much group compared to past year. Finally, we put successful spot a caller governance splitting nan domiciled of Chairman and CEO. Please statement that nan telephone dedicated to sustainability achievements and objectives will beryllium held connected March 24.

I would for illustration to reason by reinforcing our commitment, committedness to worth creation for our shareholders connected descent 10. We projected to nan ballot of nan General Assembly a dividend per stock of 2.95 euro successful 2023. It's an summation of 12%. That takes into relationship nan emergence of nan nominal dividend magnitude and, of course, nan free stock attribution successful 2022. It compares pinch nan 8% mean EPS maturation complete nan past 20 years. The full shareholder return complete 20 years reaches now 12%, showing our committedness to shareholder worth complete nan agelong term.

I will extremity present and inquire Jerome to coming our financial performance. Jerome?

Jerome Pelletan

Thanks Francois, and bully morning, everyone. So I propose we now reappraisal nan specifications of our Q4 activity and afloat performance.

So coming backmost to nan afloat year, I'm now connected page 12, group income person been stronger, including connected a comparable ground meaning excluding a fixed power pricing and important scope effect. And this is contempt nan very challenging situation described earlier by Francois. Gas & Services income for nan twelvemonth are showing 6.1% summation versus past year. Engineering & Construction income person accrued by positive 21% compared to past year. Order intake has reached complete 1 cardinal euro for nan afloat year, besides a spot coming from either electronics aliases power modulation project. Global Markets & Technologies are again seeing very beardown activity pinch positive 26% maturation boosted by our biogas business. So overall, compatible income are up 7% for nan afloat year, while published was importantly up by 28% supported by a grounds effect of power powerfulness value walk done coming for LI business, which translates into a positive 15% effect connected income for nan afloat year. On apical of an wide affirmative FX effect of 5.8% and a constricted scope effect of 0.2%.

On fixed services income I americium now connected page 13, Americas and Asia geographies are posting very important growth. While connected a business statement standpoint, merchant and electronics are nan 2 main goals driver pinch income maturation some supra 14%.

Let america now reappraisal nan activity for each of main geographies. My comments will beryllium chiefly related to Q4. I americium now connected page 14. So I felt very bully Q3. I mean we conscionable person seen different beardown maturation astatine positive 9% successful Q4. Merchant income person been very beardown successful Q4 driven by beardown pricing astatine 14.5%. From a measurement standpoint, they've been affirmative excluding helium and this is contempt nan circumstantial utmost frost arena successful nan US successful December impacting package gases distribution. In word [indiscernible] measurement person besides remained steady.

For ample industry, rhythm activity for refining has been robust successful nan US during Q4 whereas aerial gases measurement to alloy person been softer pinch chemic cells impacted by nan softer request owed to debased export activity, nan frost arena astatine nan extremity of Q4 and by respective turnarounds. So contempt precocious comparison bases successful Q4 2021 owed to COVID-19 impact, particularly successful nan US, healthcare income person been very coagulated pinch beardown proximity attraction activity successful nan US, driven by pricing. LATAM has besides been strong, acknowledgment to some med gases and location wellness care, mostly driven by beardown pricing. Finally, physics income person been impacted by little instrumentality and installation successful nan discourse of precocious comparable income past year. Carrier gases and specialty worldly income person been dependable during nan quarter.

In Europe now, we are seeing beardown income successful merchant and healthcare, while ample manufacture has been low. To beryllium astir noted again arsenic good that Russian operations are nary much consolidated since September 1, 2022. In ample industry, volumes were down minus 16% wide arsenic L'Air gases request successful alloy and chemic has been anemic impacting volume, while ICO has besides suffered from a debased refining activity, and chemicals pinch awesome turnarounds. In merchant, contempt a beardown guidelines past year, arsenic pricing started to accelerate past twelvemonth successful Q4, income person been powerfully supported by a very beardown guidelines pricing astatine positive 23%. Volume person been resilient and flat, excluding nan circumstantial effect of LCU2 shortage chiefly impacting successful nan UK. Healthcare income person been very solid. Home healthcare income person been so powerfully supported by glucosuria activity. Med state measurement has been softer owed to beardown convertible guidelines past twelvemonth owed to COVID-19. Finally, income successful specialty ingredients person been outstanding, notably successful Asia. To beryllium noted that pricing wide successful healthcare has continued to amended during nan quarter.

I americium now connected page 15. In Asia, first, merchant activity has been beardown contempt slow activity successful China owed to COVID-19 surging successful December, impacting bulk and packaged gases, partially offset by higher income successful nan remainder of Asia. Pricing has again been beardown astatine 7.5% successful China and nan [indiscernible] successful nan remainder of Asia. Electronics now astatine 17% has been again buoyant pinch maturation successful bearer gases supported by 1 startup this 4th and nan ramp up of each investment. Equipment and installation and specialty materials person seen precocious maturation passim nan regions. Pricing was besides beardown successful uncommon gases and helium. Finally, ample manufacture has been impacted by debased activity successful China successful nan discourse of COVID-19 surge. In nan remainder of Asia activity was soft, chiefly successful Singapore and Japan, successful statement pinch nan soft metallic and chemic activity seen worldwide.

In nan Middle East and Africa, maturation has been driven by ample manufacture pinch beardown request successful India and Egypt and by a standard supported by location healthcare and that are not hindered anymore by COVID-19 precocious comparables successful 2021. Merchant has been impacted by mini divestiture intermediaries offsetting bully prices.

I will now remark connected our Q4 activity by business line. I'm now connected page 16. In merchant, we’re seeing beardown maturation wide pinch income of positive 13%. Pricing has continued to enactment beardown successful Q4 successful each geographies to scope astir positive 16% to antagonistic nan spike successful power and inflation. To beryllium noted, robust prices already started to summation importantly by 7% successful Q4 2021. Volumes were resilient, excluding nan effect of nan shortage successful helium, which has been partially shifted to service physics customer and bundled pinch bearer gases contract. By extremity market, materials and power person been robust, while automotive and fabrication were astir resilient.

In ample industries, income person been little year-on-year Q4. Americas and Asia person been softer impacted by debased request arsenic good for export of metals and chemic arsenic good arsenic conscionable capable turn-arounds, whereas Europe volumes were little isolated from successful refining that was much resilient. We nevertheless saw a dependable publication from start-ups and ramp-ups.

Page 17, electronics has been very beardown again during nan quarter. Carrier gases and specialty metallic person been nan 2 maturation drivers, supported by startup and ramp-up publication and by beardown pricing successful specialty worldly and Helium for bearer guesses. Finally, healthcare was very robust, arsenic you see, supported by a very bully activity successful glucosuria that has supported nan maturation successful location healthcare. Medical gases has seen normalizing volumes aft COVID-19 pinch a affirmative pricing impact, particularly successful nan US, while specialty ingredients proceed to present outstanding goals. On a pricing standpoint, we saw wide summation successful each regions.

On page 18, our capacity betterment inclination continued to present arsenic we posted an operating separator up 70 ground constituent for some group and gar and services, excluding nan power walk done effect successful ample industry. This separator betterment shows nan spot of nan business exemplary successful a very challenging situation reinforced by our precocious capacity brand, and this is despite, arsenic you know, nan mechanical dilutive effect of nan wide ratio increase, particularly successful our merchant sales. So for nan 3rd twelvemonth successful a row, group operating separator has so improved by astatine slightest 70 ground points, showing our committedness to present stronger capacity year-after-year.

On page 19, this separator betterment is again supported by our structural betterment scheme that continues to deliver. As you tin see, pricing successful IM is still important successful origins astatine a accelerated pace. I'll travel backmost successful much item successful nan adjacent slide. We are [indiscernible] that our ratio to scope adjacent to 380 cardinal euro successful statement pinch our strategical scheme and this is contempt nan very important adverse effects of ostentation connected our procurement simplification effort. As you know, [indiscernible] successful efficiencies and were important again this quarter, those person contributed to nan capacity for nan year. Portfolio guidance and streamlining person been further pursued. It has a comparative publication to nan margin. If you return merchant, we divest businesses wherever we don't spot an betterment successful position of density, and we make acquisition successful different geographies wherever we spot imaginable to summation some density and truthful profitability. Performance betterment is again of cardinal attraction points and we proceed to activity connected those.

As you tin spot connected page 20, our pricing action successful merchant had been again very powerful, and this successful each surface science to scope positive 15% wide successful Q4 aft positive 18 successful Q3. Our pricing run person been again executed successful a very businesslike measurement pinch grounds impact, galore successful bulk and packaged gases, leveraging connected our escalation from surcharge and pricing action to reside ostentation and walk done a spike successful power costs to customer. In Q4 alone, Europe achieved a grounds astir 23% year-on-year pricing effect comparing to pricing acceleration already successful Q4 2021, while nan Americas delivered positive 14.5% and pinch a notable Asia astatine positive 7.5% year-on-year for nan quarter.

Let america now reappraisal quickly nan bottommost of nan P&L. I'm now connected page 21. Non-recurring operating expenses that amounts for nan twelvemonth astatine minus 570 cardinal euro person been impacted chiefly by 2 exceptional non-cash items; arsenic you callback during nan first semester, we took a institution liking successful 1 of our ample generator successful China, which triggered nan revaluation of nan plus pinch an exceptional non-cash book summation astir positive 200 cardinal euro. Then we adjusted down nan worth of our Russian assets and recorded an exceptional non-cash proviso amounting to astir minus 400 cardinal euro. In nan 2nd semester, we further impaired our Russian assets by astir minus 180 cardinal euro non-cash exceptional complaint pursuing nan deconsolidation of Russian activity arsenic of September 1, 2022. We group our Russians plus to zero successful our books, pursuing nan deconsolidation of Russia activity from September 1.

Net financial costs are very unchangeable contempt liking complaint increasing. Cost of indebtedness is so adjacent to 2021 level astatine 2.97%. As a reminder, 90% of our costs of indebtedness is astatine fixed rate. On an effective taxation complaint standpoint, our ratio is besides unchangeable astatine 25.7%. As a result, while nett profit arsenic published is up by 7.3%, recurring nett profit excluding FX is importantly up to 17%, excluding awesome exceptional items that person nary effect connected nan operating income aliases recurring statement pinch our guidance.

Page 22, arsenic I mentioned before, rate travel procreation has besides been very beardown astatine 12% astatine changeless FX rate. Now 20.8% of sales, excluding energy, which is positive 100 ground points versus past twelvemonth and astir to a group much than precocious business and financial CapEx astatine 3.2 cardinal euro together pinch dividend payments astatine 1.5 cardinal euro and this contempt an unfavorable rate effect. As a consequence, nett indebtedness reduced past twelvemonth to 10.3 cardinal euro and gearing stands now astatine 42%.

On page 23, nan 12-month portfolio of opportunities remained astatine a very precocious level of 3.3 cardinal Euros. This contempt nan adaptable level of determination for nan twelvemonth supported by power modulation task that will beryllium much than 40% of nan portfolio to [indiscernible] mid-term USA opportunity successful IRA travel connected apical of this portfolio of opportunity, arsenic a request for determination is mostly beyond 12 months. Industrial and financial decisions for nan twelvemonth person reached a grounds level of 4 cardinal euro of which 3.9 successful business decision, which is positive 30% versus past year. This is afloat aligned pinch our ADVANCE roadmap and see much than 1 cardinal euro deciding connected electronics project. Finally, our income backlog is besides astatine humanities precocious level astatine 3.5 cardinal euro, supported by electronics and ample manufacture task successful Asia, Europe and America that represents nan 1.3 cardinal euro of further income aft afloat ramp-up.

Page 24, nan level of start-up and ramp-up publication has reached a very precocious level astatine 293 cardinal euro. And you tin adhd 120 cardinal related Sasol aerial separation portion publication reported successful important scope. This is astatine nan apical of nan scope of our first guidance. For 2023, nan publication should beryllium successful nan scope of 300 cardinal euro to 330 cardinal euro, which is simply a higher publication than successful 2022 erstwhile you exclude nan Sasol contribution.

Last year, I americium connected page 25, was a very important landmark, arsenic nan group recurring unit and superior employed, meaning excluding 2022 important non-recurring item, Russian impairment mainly, sewage backmost to double digit astatine 10.3%; first clip since nan acquisition of Airgas successful 2016 and 1 twelvemonth up of nan committedness we made during nan ADVANCE committedness -- ADVANCE announcement.

To conclude, connected nan ground of our fantabulous capacity successful 2022, we're very assured successful our expertise to proceed to create and to amended our performance, moreover successful a much -- successful imaginable difficult context. We person group our guidance for nan twelvemonth and L'Air Liquide is now assured successful its expertise to further summation its operating separator and to present recurring nett profit maturation astatine changeless speech rate.

Again, convey you very overmuch for your attraction and we will now unfastened nan Q&A session.

Question-and-Answer Session

Operator

[Operator Instructions] We're now taking nan first question. The first mobility is from Andrew Stott from UBS. Please spell ahead. It is open.

Andrew Stott

Great, convey you. Good morning, everybody. Couple of questions, tin commencement pinch nan benignant of precocious level authorities of play connected subsidies for immoderate of your reasoning astir your power modulation strategy. Any early thoughts connected nan European Union Green Deal scheme that was unveiled some [indiscernible] but much importantly, arsenic importantly for your customers, truthful admit your thoughts connected that. Second 1 was much circumstantial connected your targets, to immoderate extent, your victims aliases your ain occurrence present but mathematically you've done almost 2 years of your separator target successful 1 year, and you're already supra your return connected superior target. So do you commencement to rethink what you tin execute successful nan adjacent 2 aliases 3 years connected margins aliases are location very circumstantial challenges for this year, for example, that we whitethorn aliases whitethorn request to deliberation about? Thank you.

Francois Jackow

Thank very much, Andrew. And bully morning. For nan first question. I will inquire Pascal who is successful nan first statement connected those European task to speak astir nan momentum and what we spot wide successful position of situation and subsidies. Pascal?

Pascal Vinet

Thank you and convey you for nan question. I conjecture what we spot is simply a very affirmative situation and we spot Europe moving, we spot nan regulations being clarified and that's, I think, a very important constituent for america and for customers. We spot nan rules being clearer. We spot nan push for hydrogen and we spot nan push for de-carbonization, and that gives america a batch of opportunities. You person seen already successes that we person had to person immoderate of our projects, immoderate of nan projects we besides person pinch our customers getting subsidies from nan European Union, aliases from nan different countries they are in. I deliberation this is only nan commencement and nan explanation that is ongoing, nan regulations that are being put successful spot will thief america going forward.

Francois Jackow

Thank you very overmuch Pascal. Regarding nan ADVANCE and nan target that we group for ADVANCE, truthful nan very bully news is that we had, I would say, a very beardown and awesome starter for nan plan, successful spite of nan environment, which was rather adverse. I deliberation we enactment afloat committed to ADVANCE. Today ADVANCE is afloat valid. In position of strategical direction, I deliberation it's very powerful to person clear directions and nan situation is fundamentally supporting nan trends and nan strategical guidance that we are focusing on, truthful I deliberation that's very good. De-carbonization, nan maturation markets, nan electronics are bringing value, I deliberation each that makes a batch of sense, nan financial and extra-financial performance.

So we are astatine nan beginning, it's a marathon. Of course, we are moving for illustration a sprint, but it's a marathon, okay, truthful it's excessively early to revise nan nonsubjective of nan ADVANCE plan. We must attraction connected nan 2 pillar, which are improving nan capacity and delivering year-after-year, nan capacity and betterment successful nan capacity and investing for nan future. Again, for nan clip being, we person been very successful successful doing both. However, nan situation and particularly erstwhile you talk astir power prices, inflation, geopolitics whitethorn bring surprises. We person shown that we tin spell done them but we request to continue, truthful it's excessively early to revise. But beryllium judge that we person ambition and whenever it's time, we will update if needed nan ambition.

Andrew Stott

Thanks, Francois. So conscionable to clarify, nary circumstantial challenges that you spot for 2023 that you didn't spot successful 2022, arsenic things beryllium today?

Francois Jackow

No. But again, we had a batch of surprises successful 2022, truthful I deliberation we request to beryllium nimble successful that regard. But again, I deliberation we person demonstrated nan resilience and we will proceed to, I would say, use nan look to our business models successful ample industry, successful business merchant, regarding pricing, regarding nan beardown contacts and business exemplary that we person and nan finance strategy that we have. So I deliberation each that will continue, of course. And we do expect, based connected what we are seeing, that nan situation whitethorn beryllium a small spot much favorable successful position of measurement and successful position of maturation compared to what we person seen, particularly astatine nan extremity of nan year. But, okay, let's beryllium cautious connected this.

Andrew Stott

Thank you.

Operator

Thank you for your question. We are now taking nan adjacent question. And nan adjacent mobility for Alexander Jones from Bank of America. Please spell ahead. Your statement is open.

Alexander Jones

Great. Good greeting and acknowledgment truthful overmuch for taking my questions. The first is connected pricing. Clearly, power prices successful Europe person started to autumn nether immoderate indexation successful your portfolio. But tin you springiness america an thought of really you would expect merchant pricing to germinate and whether you deliberation this tin stay positive, moreover arsenic power prices fall, which could perchance thief margins? And past nan 2nd mobility connected nan IRA opportunities. You mentioned successful nan prepared remarks that a batch of those are beyond 12 months successful position of timeline, could you conscionable springiness a spot much colour connected benignant of nan nonstop timelines for galore of those projects and what nan cardinal hurdles are, whether it's conscionable nan lawsuit of doing each nan engineering and tract readying aliases whether there's circumstantial regulations, you're hoping clarified by nan US government. Thank you.

Francois Jackow

Thank you very much, Alexander. So connected nan pricing, I will inquire Mike first to springiness immoderate colour connected what we see, particularly successful nan successful nan Americas and past Pascal will talk astir nan European business wherever we person seen nan top pricing powerfulness overall. And Mike will travel backmost connected nan opportunities successful nan US pursuing nan IRA. So Mike, do you want to talk astir point pricing for America's?

Mike Graff

Thanks, Francois and bully morning, Alexander. Sure, you know, successful 2022, from a pricing standpoint, we saw 2 awesome value campaigns and we continued beyond that pinch a very targeted attack for definite markets arsenic good to proceed to thrust price. And while power prices whitethorn person mitigated a small bit, arsenic you know, there's different inflationary costs drivers that spell good beyond energy, truthful we scheme to proceed to move guardant pinch our attraction connected pricing to proceed to beryllium very strategical and technological successful our approach, and we will proceed to thrust pricing done nan year.

Francois Jackow

Thank you, Mike. Pascal?

Pascal Vinet

Thank you. For nan point pricing successful Europe, I want to opportunity that our pricing efforts will continue, we do not expect pricing to move negative, we’re expected to stay affirmative successful nan adjacent month. We'll beryllium now passing done nan wide ostentation we look and we'll besides person immoderate lag effect anyhow connected nan power indexes, truthful each that will thief pricing efforts. Of course, successful percent terms, since we will now comparison pinch 2022, which already had very important value increases successful position of percentages, again, we will not spot nan aforesaid precocious percentages going forward, but we person been asking, that's nan important point. We person been successful a imperishable pricing run mode successful Europe since nan extremity of 2021 and this will proceed successful 2023.

Francois Jackow

And I deliberation 1 of nan cardinal constituent erstwhile we talk astir point pricing is of people to beryllium capable to walk through, I mean, immoderate of nan costs, power and inflation, but besides to create worth for customers. And intelligibly that's wherever L'Air Liquide is making a differentiation by bringing solutions to thief customer header pinch nan business and we talked astir nan Oxy condition, for example, we talk astir galore of nan applications which are bringing value. And I deliberation we are entering into this shape wherever for nan agelong term, we request to beryllium successful a position to create worth for customers to make judge that they enactment competitory and, of course, we are successful business pinch them. So let's talk now astir nan US and Mike tin you show america really we see, I mean, nan opportunities being supported by nan IRA?

Mike Graff

Sure. And to that point, Alexander, I deliberation that first of all, arsenic you know, nan IRA accomplishes galore things. Two very halfway drivers for america are nan de-carbonization, de-carbonization of manufacture arsenic good arsenic nan de-carbonization of nan proscription assemblage aliases mobility. If we attraction successful connected nan de-carbonization of power intensive industries, conscionable for example, connected nan Texas Gulf Coast, nan US Gulf Coast, successful general, you've sewage apt 15 world standard crackers, that successful immoderate play of time, for illustration they will look astatine de-carbonization. They won't each hap astatine once, there's not a nonstop request for that, but, clearly, there's tremendous imaginable there. In addition, you've sewage nan opportunity to usage debased c aliases renewable hydrogen successful nan existent accumulation process itself, that is, arsenic a halfway component, of what is produced for illustration bluish ammonia.

So these bring important opportunity but there's a batch of complexity to this because successful almost each lawsuit you're dealing pinch ample standard accumulation of debased carbon, hydrogen, potentially, nan ample standard seizure of Co2 and sequestration, and past besides ample quantities of oxygen that are basal to make this work. We're fortunate because we person each of nan technologies basal to do that. We do not request to licence from others, for illustration immoderate of our peers do successful nan industry, but we person nan ownership of each of those technologies. So wherever we are coming is we're looking to leverage our existing infrastructure, gathering our customers’ needs while simultaneously reducing nan c footprint of our ain assets, which results successful very ample analyzable projects.

And to nan constituent that Francois and Jerome made earlier, because of nan size and nan complexity, there's aggregate options and aggregate solutions to beryllium considered, which really push a batch of nan decisions of our customers retired beyond nan 12 period play into 2024 and perchance beyond for immoderate of these ample opportunities. So it creates tremendous imaginable for us. Clearly, too nan number of projects and nan complexity, we're besides successful a position to beryllium selective connected what makes nan astir consciousness for america to leverage our capabilities, to leverage our infrastructure and to move forward.

Francois Jackow

Thank you very much, Mike. Let’s not hide besides that location is simply a stronger momentum astir nan semicon manufacture successful nan US, location is simply a twelve of fabs, mega fabs, which are being built aliases developed currently. And location again, I mean, those are important opportunities, astir apt little located connected nan US Gulf Coast, but we are very good positioned again, leveraging our number 1 position successful electronics worldwide pinch cardinal companies. So that's different opportunity for North America for us. Thank you.

Alexander Jones

Thank you.

Operator

Thank you for your question. We will now return nan adjacent question. The adjacent mobility from [indiscernible] from Citi. Please spell ahead, your statement is open.

Unidentified Participant

Hi, convey you for taking my questions. Just 1 small spot connected nan adjacent word and past 1 coming backmost connected to this nan imaginable opportunity connected nan IRA. The first one, are you capable to compete connected nan ample industries and nan improvement since nan extremity of nan twelvemonth connected a world ground and really they're processing pinch almost six weeks into nan 4th quarter? So if location is immoderate comments astir that would beryllium helpful. And past much specifically, successful China arsenic well, immoderate early observations station nan Chinese New Year successful position of ample industries request location that'd beryllium helpful.

And past secondly, I think, Mike, you mentioned that you're being very selective connected aliases you are successful nan opportunity position to beryllium selective connected projects is done arsenic opposed to nan IRA. Should I understand that arsenic being your accustomed hurdle rates request to beryllium met aliases are you baking successful immoderate benignant of separator of correction aliases contingency wrong that, fixed this is an power transition, and there's immoderate caller technologies to beryllium played out. So I'm starting to understand erstwhile you opportunity selective is astatine a higher hurdle complaint that you're applying to these products aliases are they akin to what you usually do for your existing products. Thank you.

Francois Jackow

Thank you. Thank you very overmuch [indiscernible] for your questions. So possibly to springiness you an overview of wherever we guidelines and really we see, basically, I mean, nan trends globally, I deliberation I would situation anybody to springiness a definitive reply for 2023, for sure. But, overall, if we look astatine nan opening of nan year, we spot a stronger numbers successful January, overall. Of course, we request to support successful mind during nan twelvemonth for inflation, energy, to immoderate extent, besides geopolitics, arsenic they will be, I mean, cardinal outer KPIs. If we talk astir conscionable immoderate things to support successful mind for nan year-on- twelvemonth inclination connected nan different segments and geographies, I deliberation clearly, for ample manufacture successful Europe, we judge that nan request has bottomed up astatine nan past quarter. We commencement to see, I mean, immoderate affirmative chat astir expanding nan operating complaint and restarting immoderate of nan units pinch immoderate of our customers. And I think, of course, I mean, nan improvement will dangle connected nan power value but overall, it's a affirmative trend, much globally, by nan way, ample manufacture and successful each nan region of nan world will use from a coagulated startup and ramp-up during nan year.

If we return business merchant, some successful Europe and America, was nan cardinal driver. As we conscionable mentioned, I mean, we are assured that nan prices will stay precocious moreover if nan comparison effect, of course, will astir apt will beryllium little than what we person seen. But volume, clearly, I mean, should resume nan maturation successful nan different parts of nan world. Specifically, I mean, erstwhile we talk astir China, we had a twelvemonth of 2022 successful China, which was impacted by galore events from an economical constituent of view, from a governmental constituent of view, also, I mean, pinch nan COVID astatine nan extremity of nan year, but we commencement to spot affirmative numbers, we tin travel backmost to this. But wide I mean successful business merchant and successful ample industry, we are assured that we should expect them successful immoderate benignant of picking up. Clearly electronics successful China has remained beardown and solid. This is existent for electronics successful Asia overall, and proceed to beryllium a driver.

Finally, I deliberation for nan healthcare activity, it's intelligibly coming backmost to humanities maturation level, stronger, particularly successful nan homecare business, and again successful North Armenia, but besides successful Europe, beardown pricing. So, that's wide what we see.

Maybe for nan IRA selectivity, we person nary intention, fundamentally to alteration some our business exemplary and nan bid complaint that we are using. So, overall, I deliberation that's portion of nan worth creation that we're capable to bring to nan power modulation by leveraging technologies, arsenic mentioned by Mike, but besides synergies pinch existing assets, and economies of scale, truthful regrouping definite needs and customer, we are capable to create worth and to person projects which person a akin return floor plan arsenic what we person successful ample manufacture aliases successful electronics. And that's really what we want to do. The truth that we spot galore opportunities is for america a bully motion because indeed, we tin beryllium selective and prime nan champion task successful position of return but besides successful position of strategy.

Unidentified Participant

Very helpful. Thank you.

Operator

Thank you for your question. We will now return nan adjacent question. And nan adjacent mobility is from Laurent Favre for Exane BNP Paribas. Please spell ahead. Your statement is open.

Laurent Favre

Yes, bully morning, all. I’d for illustration to spell backmost to nan IRA. You've talked astir nan potential, you’ve talked astir your beardown footprints and capability, I was wondering if you could talk astir your appetite to put successful importantly larger projects. I deliberation your 2 peers since past summer, they announced projects supra a cardinal worthy of capital. Is this thing that we should beryllium expecting from L'Air Liquide and, much broadly, who would you expect to motion caller projects aliases denote caller projects by nan extremity of this year? Thank you.

Francois Jackow

Thank you, Laurent. So this is existent that we spot much projects and we spot immoderate projects which are becoming larger projects. The very bully news is that we person not only nan ambition, but nan capacity to prehend immoderate type of projects that we spot fitting pinch our semipermanent position of worth creation. Today, L'Air Liquide is simply a very beardown position from a financial constituent of position to return immoderate opportunity that we see. We person a very beardown equilibrium sheet. We person a gearing, which allows america I mean to return immoderate projects that that we see. So far, nan attack has been intelligibly to focusing connected nan projects, which are actual task wherever we tin place a clear business exemplary and very important to find customers which are fresh to perpetrate and to salary for those caller solutions. That's why you spot that we person respective important projects, galore of them are successful Europe, which really fresh those criteria. And each of those projects erstwhile we talk astir nan equalizer, c capture, fundamentally person a very beardown business exemplary and fresh perfectly pinch our strategy and pinch our nonsubjective successful position of financial targets.

I mentioned nan number of 7 projects, which are ample projects connected nan European level. And if you return nan cumulative investment, it's much than 1.8 cardinal euro of investment. If we measurement back, I deliberation location is simply a worth successful having those ample task but not those mega projects successful position of consequence management, because we cognize that power modulation is besides a caller area that immoderate of nan marketplace whitethorn return a small spot longer time, immoderate of nan counterparty whitethorn beryllium caller counterparties. So successful position of managing overall, nan consequence floor plan for nan company, we do judge that having a beardown portfolio of ample task arsenic opposed to 1 aliases 2 azygous mega task is simply a overmuch amended measurement to advancement successful that successful that field. This being said, I mean, we person a fewer ample projects we are moving connected and whenever it's owed time, and erstwhile we deliberation that makes sense, of course, we'll denote immoderate of them if we determine to spell forward.

Laurent Favre

Thank you and if I whitethorn inquire you nan 2nd one. It's related to nan efficiencies, I conjecture for Jerome. I deliberation nan targets wrong ADVANCE is 1.6 billion, which I conjecture complete 4 years is 400 cardinal per year. You were somewhat beneath that successful 2022, should we presume that you'll beryllium somewhat supra successful 2023?

Jerome Pelletan

Thank you very much, Laurent. Efficiency has been has been very, very beardown astatine 380 cardinal euro successful nan discourse of very precocious inflation. You cognize Laurent, we do not study avoiding costs but avoiding costs besides has been very beardown and has contributed to nan performance. We talk much astir separator -- our committedness to amended margin. And you cognize we person been doing that, again, we've done 7 positive -- supra 70 BPs for nan past 3 years and this twelvemonth we person delivered positive 80 ground points successful nan 2nd portion of nan twelvemonth only. So efficiencies -- besides conscionable for you to carnivore successful mind, efficiencies were 380 cardinal euro and we achieved 211 cardinal connected nan 2nd portion of nan year, truthful we accelerated very overmuch successful nan 2nd portion of nan year, which meant america besides improving our vertical ratio. Now, our nonsubjective is to beryllium capable to present 1.6 cardinal complete nan ADVANCE play and truthful far, it's our objective. But again, 380 cardinal euro successful nan circumstantial ostentation situation is simply a very beardown a very beardown achievement.

Laurent Favre

Thank you.

Operator

Thank you for your question. We will now return nan adjacent question. And nan adjacent mobility is from [indiscernible]. Please spell ahead. Your statement is open.

Unidentified Participant

Good morning. Thank you for taking my question. I person two. The Co2 shortage you mentioned successful Europe, do you expect it to beryllium a short-term arena aliases to amended longer term? Second mobility is much astir c seizure and Co2. I was wondering if this could go an opportunity arsenic ample arsenic hydrogen opportunity for L'Air Liquide?

Francois Jackow

Thank you very much, John Nick [Phonetic]. So Pascal will return nan first mobility and I'll travel backmost for nan 2nd one.

Pascal Vinet

So convey you John Nick. On nan Co2 shortage successful Europe, arsenic we person mentioned, it has been much acute successful nan UK than successful immoderate different country. And nan world reason, I deliberation we mentioned it successful erstwhile calls, is fundamentally nan truth that fertilizer plants, ammonia plants person stopped producing erstwhile they were facing a very, very precocious power prices. And those ammonia plants are immoderate of nan large sources for nan Co2 we waste successful our merchant activity. So what is nan adjacent early successful our views? I deliberation we are going to spot little and little of shortage because we commencement proceeding from much suppliers successful this lawsuit of Co2 that they whitethorn restart immoderate units. There's still a mobility people connected nan UK. We spot connected nan -- successful continental Europe things improving. So nan assemblage is still out, it will dangle connected power prices but we are reasonably optimistic that this will lick itself. Again, assemblage is still retired but affirmative trends. The UK being nan only very difficult lawsuit we look correct now.

Unidentified Participant

Thank you.

Francois Jackow

Thank you very overmuch for your mobility connected Co2, because indeed, we spot a very important marketplace opportunity successful Co2. We person been talking each -- a batch astir hydrogen, but nan taxable of taking nan Co2 retired of nan existing manufacturing sites is becoming much and much present, and is being much and much accepted, particularly successful countries for illustration European countries. So for us, it's an opportunity because we are very good positioned. We are good positioned because we are already, I mean, supplying galore of those industries successful nan business basins successful nan world, but besides because we person a clear lead successful position of exertion connected nan seizure beforehand successful nan higher headdress and each nan technologies astir that. So we spot that arsenic an opportunity for waste of instrumentality from an engineering business but much important connected nan OTF type of conception and we person already been successful coming successful managing to create a caller innovative [indiscernible] business based connected nan c seizure either connected our ain portion aliases connected nan customer units. We spot clearly, I mean, nan business opportunity connected nan seizure portion of nan CCS chain, not truthful overmuch into nan carrier aliases successful nan storage, which are not our halfway business. So nan Co2 opportunities astir nan world will go a reality, astir apt astatine a scale, which is going to beryllium a ample standard earlier we spot a larger request for hydrogen for industry, for example, because nan Co2 nan technologies are available, nan economics is already viable, moreover without subsidies. And also, nan Co2 guidance concerns galore industries, which for america are sometimes caller customers. For example, nan cement manufacture is simply a large emitter of Co2 and you cognize that we person announced already 2 projects pinch nan cement institution to seizure Co2 retired of their processes. So, pinch nan improvement of Co2 hubs successful immoderate cardinal basins, and they again, we are taking a starring domiciled connected respective of those Co2 hubs, we spot opportunities coming into fruition.

Unidentified Participant

Thank you.

Operator

Thank you for your question. We are now taking nan adjacent question. The adjacent mobility from Chetan Udeshi from JP Morgan. Please spell ahead. Your statement is open.

Chetan Udeshi

Yeah. Hi, thanks. I person 3 speedy ones. One, conscionable looking astatine 1 of nan slides astatine nan beforehand talking astir proprietary technologies that L'Air Liquide has, whether it's ATR aliases c capture, I'm conscionable funny really is that benignant of helping you if astatine each successful position of statement wins, particularly successful immoderate of nan power modulation projects? Is location immoderate benignant of qualitative aliases quantitative information you tin stock to thief america understand nan upside for L'Air Liquide from having those proprietary technologies successful location versus immoderate of your competitors?

The 2nd question, astir apt much related arsenic well, we saw 1 of nan US peers, your US peer, talk astir costs ostentation connected nan task side. I'm conscionable curious, fixed nan lead clip sometimes connected projects tin beryllium 2 to 3 years, erstwhile you motion erstwhile you deliver, aliases startup, really are you protecting nan returns and margins, fixed nan costs ostentation move successful wide for batch of materials?

And past question, I'm conscionable looking astatine nan descent 30, which shows separator betterment by regions, it seems each nan separator betterment past twelvemonth has travel from Europe pinch nary bully separator betterment successful Asia aliases very mini successful America. So tin you possibly shed immoderate ray why we didn't spot immoderate separator betterment successful nan US and Asia? And it seems Europe has been held chiefly by very precocious merchant prices because intelligibly nan ample industries volumes were weaker done to 2022. So immoderate colour connected nan location separator improvement will besides beryllium helpful. Thank you.

Francois Jackow

Thank you very much, Chetan. I will reply nan first mobility and Mike will talk astir nan task successful nan US and much globally, nan projects and Jerome, probably, tin talk to nan margin. So nan first one, intelligibly adding proprietary exertion is, for us, clear competitory advantage, particularly successful nan section of power modulation wherever you request to invent a caller solution, some successful position of exertion but besides successful position of business model.

I deliberation a clear illustration of that is what we person done pinch Total Energy successful actual now, we are fundamentally -- acknowledgment to nan portfolio of L'Air Liquide technologies, we person been capable to invent a caller solution utilizing biofuel arsenic a feedstock, but besides being capable to nutrient hydrogen, which is biohydrogen, and to seizure Co2, which is biogenic Co2 for nan merchant market. And this was done, acknowledgment to nan integration of nan steam methane reforming technologies, but besides each nan cryo headdress technologies and to find a solution which was meeting, I mean, nan marketplace objective, but besides making, overall, nan solution overmuch much competitive.

So I think, for us, it's highly important to invent nan solution aliases to unfastened a caller marketplace pinch caller technologies. Hence, nan associated task pinch Siemens Energy wherever we collaborate very intimately to do nan industrialization and nan standard up of those technologies. So this will beryllium cardinal because nan main differentiation is going to beryllium not to make immoderate bully descent show astir nan power modulation and nan caller scheme, but to beryllium capable to build and to run those ample caller units and adding nan proprietary technologies a clear use for each those integrated schemes. Mike, do you want to talk astir projects and really we negociate inflation?

Mike Graff

Sure. And if I could possibly conscionable to adhd somewhat to what Francois said and build connected his comments, erstwhile we look astatine nan use of nan proprietary technologies admit that galore of our customers, typically erstwhile they build a project, aliases erstwhile they're looking to adhd capacity, they beautiful overmuch understand what it is they whitethorn request from us. In this peculiar case, they are really successful a authorities wherever because of each nan complexities we mentioned earlier, they're not really judge what nan champion attack is. And to Francois point, because we ain each of nan various exertion bricks, we are capable to quickly create without getting 3rd parties progressive a assortment of different options for solutions.

And truthful we are, to Francois point, nan solution supplier that tin thief them understand what to do, and past thief them do it and I deliberation that creates a existent benefit. I deliberation connected nan cost, ostentation piece, clearly, we've seen acceleration successful costs. We've talked astir inflation, we've talked astir a assortment of different things, and what we person worked to do pinch galore of our ample projects, successful caller time, is either upfront successful nan statement connected nan statement to see inflationary context, already built into nan building portion or, arsenic always, successful our ample industries contracts, we person inflationary position that are built into those semipermanent contracts arsenic well, and nan trade-off betwixt nan 2 thief mitigate nan wide inflationary costs we whitethorn see.

Francois Jackow

Thank you very much, Mike. Jerome?

Jerome Pelletan

Yes. All right. Thank you very much, Chetan, for your question. So we'll travel backmost connected nan separator betterment successful Europe and America. So you're correct Europe has a important separator improvement, location are fundamentally 4 explanations for that, first, nan pricing and you saw nan pricing has been very strong, moreover connected apical of a larger guidelines effect past year, truthful that’s nan first explanation. The 2nd mentation is efficiency, astir of nan efficiencies besides accelerate successful nan 2nd part, including successful Europe. The 3rd point was besides thing that you cognize very well, it is L'Air analyzable civilization successful nan discourse of little volume, you that nan fixed way is very overmuch -- and nan worth is very overmuch successful nan fixed path. So mathematically and mechanically, erstwhile you trim measurement and sales, you fundamentally make your separator much relative. And location is besides a circumstantial point connected nan task activity that was good, truthful that is for Europe.

For Americas, it's besides nan aforesaid communicative successful position of [indiscernible] and bully efficiencies and arsenic good arsenic [indiscernible] impact. But you punctual us, you cognize that very good Chetan, we person nan awesome portion of our business successful nan Americas, which is still higher successful merchant. And moreover though we person been capable to present a important pricing, mechanics gets diluted to nan margin. So that's why explaining nan truth that, I mean, Americas would not astatine nan aforesaid gait arsenic successful Europe. But each successful all, again, very beardown separator improvements astatine nan group level, particularly successful nan 2nd part.

Chetan Udeshi

Thank you.

Francois Jackow

Alright, acknowledgment you very much, Jerome. Thank you, Chetan. I deliberation we person conscionable clip for 1 past mobility and I conjecture this is Peter.

Operator

Yes, it is Peter Clark from --

Peter Clark

I've sewage 3 very speedy ones and if I americium nan past one. I sewage trim out, but I conscionable want to explain connected nan 8 cardinal target by 2035 is your US IRA projects, aliases thing for illustration nan benignant of things we spot being signed, and you're not going to leverage nan pipelines, etc, you're going to spell beyond that. So that was nan first question. The 2nd one, nan firm charges, I'm assuming nan firm complaint is not nan R&D seems to travel down importantly successful nan 2nd half. Just to remark connected that, because that's an encouraging trend, if that's right. And past finally, conscionable very quickly connected Mexico, I must person missed nan announcement, I can't spot a property merchandise connected it. Is this a small spot of a retrenchment from immoderate of nan merchant operations wherever I cognize it sewage very reliable for you. Thank you.

Francois Jackow

Thank you very Peter. So conscionable to travel backmost connected nan finance opportunities, again, for nan clip being we person ADVANCE, which is nan model for nan adjacent 4 years, but successful this framework, you retrieve that we person a 16 cardinal of finance plan, which is 50% much than nan erstwhile period. Of course, I mean, we are looking and adapting to nan opportunities. We spot much opportunities, truthful it's imaginable that successful owed clip pinch nan correct project, we will put more, but again, L'Air Liquide has nan capabilities to do that, truthful if we spot bully opportunities, we'd beryllium successful a position to activity them. Regarding nan R&D costs and nan charges, Jerome, you want to comment?

Jerome Pelletan

Yeah, I will not remark excessively much. We tin person immoderate time, which tin beryllium different successful position of nan measurement that we are charging nan R&D, but that's fundamentally thing that it's functional, truthful we cannot make a inclination of this specifically, Peter.

Francois Jackow

And basically, I mean, our committedness to R&D, I mean, remains nan same. We are wrong nan industry, I mean, nan one, which is investing nan astir successful innovation, and we want to support it that way, we spot that it's making a clear quality coming successful nan existent situation and pinch nan power transition, truthful that will remain. Mike, do you want to make a speedy remark connected Mexico?

Mike Graff

So, Peter, location person not been immoderate nonstop property releases aliases thing regarding nan investments successful Mexico aliases thing for illustration that. I deliberation that nan authorities is looking astatine its wide positioning successful position of Pemex [Phonetic] successful position of those types of opportunities that they had looked successful nan erstwhile term, to spell up and leverage 3rd statement suppliers. And there's a batch of chat correct now pinch nan government, pinch immoderate of those 3rd statement suppliers arsenic to whether this is nan correct building going guardant but location hasn't been immoderate announcement connected anything.

Peter Clark

Thank you very much.

Francois Jackow

Thank you very much. So this will now reason this session. Thank you very overmuch for each your questions. Just to summarize, we delivered again a beardown capacity successful 2022 successful a challenging environment. The grounds level of task signing position america very good for nan early and we stay highly focused to deploy our ADVANCE programme and execute our mid-term objectives successful position of growth, our Co2 emanation and worth creation for our shareholders. So convey you again, I cognize that we will beryllium gathering immoderate of you successful a fewer hours successful London, we will proceed astir apt nan chat and I wish to each of you a very bully day. Thanks you.

Operator

That’s it from nan convention for today. Thank you for participating. You whitethorn now disconnect.