CMD preview: strong execution underpins the next leg of value creation

Strong execution underpins confidence in new targets. Air Liquide will host a virtual CMD on 5 October, during which it will unveil its new four-year strategic plan & financial framework, including updated growth, margin & capital allocation ambitions, alongside a deep dive into key growth drivers such as Electronics and the energy transition. We continue to view Air Liquide as one of the highest-quality compounders in our coverage universe. Importantly, management has demonstrated a strong track record of delivering on and, in most cases, exceeding its objectives set out under the 22-25 ADVANCE plan despite a volatile macro. This should lend strong credibility to the new set of targets. Greater emphasis on shareholder returns and earnings visibility - Bloomberg recently reported that activist investor Elliott has built a stake in the company. While we do not expect this to result in a fundamental shift in strategy, risk appetite, or management's typically conservative and grounded com