The innovation process in Air Liquide advanced Technologies

The innovation process in Air Liquide advanced Technologies sharing my personal experience Pierre CRESPI, Director of Innovation, ALAT THIS DOCUMENT IS PUBLIC GLOBAL MARKETS & TECHNOLOGIES THIS DOCUMENT IS PUBLIC EASISchool, Minatec, October 4, 2019 ∙ AIR LIQUIDE , THE WORLD LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH GLOBAL MARKETS & TECHNOLOGIES

There are 3 prerequisites for innovation : M EN T Innovation: more a mindset than a process PO W ER 1 EMULATION : Make the pot of ideas boiling: mix competencies, nurture communication, cross-fertilization, agility 2 PASSION: Innovation works once in ten Meaning it fails nine times out of ten! You then must be highly focused and have tenacity to withstand over the long term 3 VISION: to give sense, to have perspective in mind You always must know where to go, knowing you will never go where you wanted to go! EM Which is fine because anyway, the initial direction was wrong! Innovation is not a goal, it is a mean; the goal is to get a good product, service THIS DOCUMENT IS PUBLIC 2 ∙ AIR LIQUIDE , THE WORLD LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH GLOBAL MARKETS & TECHNOLOGIES

By the way, what is Innovation? As many definitions as people! I am working in a technology-driven company, so what I know is : If the technician fails, the innovation will fail But if the technician succeeds, the innovation may still fail Indeed, the innovation is a good match between a need and a solution Good solution but no need = not innovation, just an invention So, first we need NEEDS: explore, open your eyes, detect trends and chase for unsatisfied needs (market pull) But do the reverse at the same time : what a hell could my bright idea serve? (techno push) Am I an inventor or an innovator? Do I care if it is not my idea? If thanks to my efforts, the idea became a success, then I am the innovator, not necessarily the inventor Do I care if it is not that innovative, technologically speaking? as long as it is an added value for my organization, it’s fine AIR LIQUIDE , THE WORLD LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH THIS DOCUMENT IS PUBLIC 3 ∙ GLOBAL MARKETS & TECHNOLOGIES

TRL 5 steps of innovation (Technical Readiness Level) 8 n at io n ur at 9 n 8 ∙ or at io 7 THIS DOCUMENT IS PUBLIC io 6 pl ct 5 ru 4 st io Speed up technical development 3 1 In 2 Sé 3 le c 2 t io n 1 at M ati on ov Inn 4 ia lis Speed up market study 5 No market m er c 6 Good market idea; validate the techno 4 m 9 7 Ex Co MRL (Market Readiness Level) Not feasible Good techno idea, validate the market AIR LIQUIDE , THE WORLD LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH n GLOBAL MARKETS & TECHNOLOGIES

TRL One exemple : the turbo. Brayton 2 nd contract 2015 1 st contract on LNG ship 9 8 2013 1 st customer: a chinese lab 7 3 rd contract 6 ALAT keeps developping the technologie at low profile; first prototype works in ALAT in 2012 5 2006: DOE finances the LIPA 1&2 project; cable connected, classical cooler, then DOE stops 3 2019: 50 m€ 9 8 7 6 1 5 4 3 2 2 1 2005 -2006 : Instruction, architecture paper study : is this feasible? Yes 4 Intensification prospection BOG recondensation on LNG ship promising MRL 2011: first market study 2020 : 1 turbomachine per day!!!! THIS DOCUMENT IS PUBLIC ∙ 2002 : the scientific AIR LIQUIDE , THE WORLD community starts talking about the technology LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH GLOBAL MARKETS & TECHNOLOGIES

A long term story written by few techno-intrapreneurs working in the innovation department : 1 or 2 key persons behind each line below 1 1990: first Oxygen generator aboard the Rafale combat aircraft; Business unit created in 1996; 150 persons and 40 m€ in 2019 2 1991: 1 st contract on a turbo-Brayton for the International Space Station Flown in 2006, still running, creation of a dedicated orbital cryogenics BU (50 pers. today) 3 1996 : 1 st H 2 refueling station; creation of the New Energy BU in 2012 4 1999: 1 st idea on pulse tube coolers for space; 1 st contract 2010; 1 st flight 2019 5 2001: Creation of Axane, our subsidiary in FC; went up to 50 pers in 2012 6 2002: 1 st idea on the turbo-Brayton; transferred to the BU in 2014; serial product today 7 2006: beginning of work on biogas purification : transferred to New energy in 2013 The techno-intrapreneur is like a music conductor ALAT size has doubled since 5 years; 30% of the business is done on technologies which were in the Innovation Direction less than 10 years ago From idea to series : 10 -15 years average! AIR LIQUIDE , THE WORLD LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH THIS DOCUMENT IS PUBLIC 6 ∙ GLOBAL MARKETS & TECHNOLOGIES

A mindset adapted to each phase Networking, agility Innovation, conviction Specialization, rigor, focused, tenacity AIR LIQUIDE , THE WORLD LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH THIS DOCUMENT IS PUBLIC 7 Appetite for technology, go to details, do it yourself, start being rigorous ∙ GLOBAL MARKETS & TECHNOLOGIES

Conclusions: key features for a succesful innovation 1 Passion for technology, intrapreneurship, agility 2 We cannot oblige people to have ideas The innovator has to inspire in order to get empowerment –THE key words – 3 Technology is only half of the stake : matching with needs is key prospection (pull/push) 4 The ideation/prospection phase, whilst fundamental, is a minor part in terms of manpower effort : Making the idea a reality is much harder and longer : an adapted mindset is needed for a rigorous realization 5 Selling the idea outside is mandatory but not enough … … early selling inside can be more complex! AIR LIQUIDE , THE WORLD LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH THIS DOCUMENT IS PUBLIC 8 ∙ GLOBAL MARKETS & TECHNOLOGIES