Air Products Reinforces Commitment to Shareholder Value Through Strategic Growth Approach

Air Products (NYSE: APD) is on a steadfast path to enhance shareholder value, showcasing its dedication through disciplined execution of a two-pillar growth strategy. Recently, the company filed its definitive proxy statement and a WHITE proxy card with the U.S. Securities and Exchange Commission to prepare for the upcoming Annual Meeting of Shareholders on January 23, 2025. The meeting will encompass discussions relevant to all shareholders holding stock as of November 27, 2024, highlighting the importance of participation and informed voting.

The letter addressed to shareholders outlines key reasons to support Air Products in this critical period. It highlights the company's unmatched profitability as the leading industrial gas business globally, achieving impressive adjusted EBITDA margins and consistent growth in earnings per share (EPS). Over the past four years, Air Products has channeled over 50% of its capital investment into its core industrial gas business, laying a robust foundation for future expansion in the rapidly growing clean hydrogen sector.

Air Products' early mover advantage in the clean hydrogen market holds promise for significant returns. With projections estimating the market's total revenue at over $600 billion by 2030 and surpassing $1 trillion by 2050, the company is poised to capture a prominent share. Notably, the recently announced 15-year contract to supply TotalEnergies with 70,000 tons of green hydrogen annually spotlighted immediate demand and the potential for considerable shareholder value creation.

Additionally, the company prides itself on strategic capital allocation and returning value to its shareholders. Through prudent investments in new projects anticipated to meet internal return targets, Air Products plans to increase dividend payouts, with a cumulative growth rate of 9% under CEO Seifi Ghasemi's leadership. As capital expenditures stabilize, shareholders can expect an upsurge in returning capital, whether through dividends, repurchases, or other methods.

A significant aspect of the letter discusses the ongoing search for a successor to CEO Seifi Ghasemi, emphasizing a thoughtful and strategic approach to this pivotal transition. The Board aims to announce a qualified successor by March 31, 2025, ensuring the new leader is well-prepared to steer the company forward.

In an effort to maintain stability and long-term strategic focus, the Board acknowledges the importance of an independent, well-rounded board composition. With six out of nine directors appointed in the past five years and two new nominees with robust leadership backgrounds, the Board believes it is well-positioned to oversee the continued development of Air Products.

The message to shareholders is clear: Mantle Ridge, an activist investor group, poses a risk to the company's trajectory and proposed a complete overhaul of the current Board and management. The letter vehemently refutes their demands, arguing that their actions could destabilize the company and disrupt the ongoing success of its growth strategy, which is already yielding strong results.

Shareholders are encouraged to vote for the nominees proposed by Air Products, as these individuals are deemed highly qualified to guide the company toward its future goals. The Board maintains its commitment to maximizing long-term shareholder value and driving innovative solutions within the industry, particularly in the burgeoning clean hydrogen market.

In conclusion, Air Products steadies its course of disciplined execution in creating shareholder value. As the landscape of energy and industrial gases evolves, the company remains dedicated to capitalizing on its strengths in both traditional and emerging markets, ensuring continued profitability and sustainability. For more information, visit www.voteairproducts.com, and be sure to exercise your vote at the upcoming Annual Meeting. An informed and engaged shareholder base is crucial in steering the future of Air Products toward success.