BOC Report and accounts 2005 - Alle jaarverslagen

Group profile 15
Analysis of results by region
(including share of joint ventures and associates)
Turnover Operating profit Adjusted operating profit
£ million % £ million % £ million %
Europe 1,300.8 28 138.6 25 143.7 25
Americas 1,222.1 27 84.4 16 100.0 18
Africa 586.0 13 91.3 17 91.3 16
Asia/Pacific 1,496.1 32 229.2 42 229.2 41
4,605.0 100 543.5 100 564.2 100
Adjusted operating profit excludes exceptional items. See also pages 40 and 41 of the operating review.
The UK accounts for the largest part of the Group’s activities in Europe but BOC has significant gases subsidiaries
in Ireland and Poland, vacuum products manufacturing in France and a pharmaceutical packaging machinery
operation in the Netherlands.
Gist, BOC’s supply chain solutions business, operates principally in the UK but also has operations in other
countries.
Subsidiaries in the US are engaged in the Group’s three lines of business.The Group’s other principal
subsidiaries, joint ventures and associates in the Americas are located in Canada,Venezuela, Colombia, Chile and
Mexico.
The largest Group subsidiary in Africa is African Oxygen Limited (Afrox), a South African public company in
which the Group owns 56 per cent of the equity.The largest shareholder, other than BOC, holds less than 15 per
cent of the equity.Afrox, primarily through wholly-owned subsidiaries, is engaged in the manufacture and sale of
products within the PGS and ISP lines of business.Afrox also has a 20 per cent interest in private hospitals, clinics
and other health care services in southern Africa.
There are other Group or Afrox subsidiary companies in Africa located in Botswana, Kenya, Malawi,
Mozambique, Namibia, Nigeria, Swaziland,Tanzania, Uganda, Zambia and Zimbabwe.These companies are engaged
primarily in the manufacture and/or sale of products in the ISP line of business.
BOC has businesses in most of the Asia/Pacific markets, including Japan, Korea,Thailand,Taiwan, Indonesia,
Malaysia, Singapore, China, the Philippines, India, Pakistan, Bangladesh,Australia and New Zealand. In Australia,
the Group’s business is conducted by BOC Limited.This company, as well as its subsidiaries, joint ventures
and associates, is engaged in the manufacture and sale of products in the PGS and ISP lines of business. BOC
participates in the liquefied petroleum gas market in Australia through a 50 per cent shareholding in Elgas Limited.
Elsewhere in the Pacific region, the Group conducts its business through subsidiaries, joint ventures and associated
companies.
Management organisation
BOC’s management structure is based on three global lines of business and, throughout the period 2003 to 2005,
on two specialist businesses. Each line of business serves a clearly defined type of customer and each pursues its
own strategy for growth and performance at a local level.The organisation is designed to maximise BOC’s global
as well as local strengths.The lines of business have global responsibility to set strategy and prioritise investment.
They include operational business units and these local units are responsible to the Group chief executive for
delivering financial, safety and operational performance.The business units contribute to the development of the
strategies of the lines of business and customise and implement them in local markets.The business unit heads
collaborate in order to share best practice and to maximise growth and profit opportunities wherever they
may appear.
Process Gas Solutions (PGS) manages all aspects of BOC’s business with customers requiring bulk supplies of
industrial gases from on-site plants or by pipeline as well as deliveries of liquefied gases.Typical customers are found
in the oil and chemicals, food and beverage, metals, and glass sectors all round the world. Marketing, business
development and the execution of investments to provide customer specific solutions for the supply of industrial
gases are handled by Process Systems, which forms part of PGS.
Industrial and Special Products (ISP) covers BOC’s business with customers in the fabrication, medical and
leisure sectors as well as the special products and liquefied petroleum gases businesses.
BOC Edwards embraces all aspects of business with semiconductor industry customers worldwide including
the supply of bulk gases and electronic materials, vacuum and abatement technology, chemical management
systems and semiconductor-related services. BOC Edwards also serves general vacuum markets around the world
and manufactures pharmaceutical freeze-drying and packaging machinery.
The segment reported as Afrox hospitals operated through Afrox Healthcare Limited up to the end of March
2005. It owned and managed private hospitals and clinics in southern Africa. BOC’s majority-owned subsidiary,
African Oxygen Limited (Afrox), held 69 per cent of Afrox Healthcare Limited (AHealth) when the company was
sold to a consortium led by two major black economic empowerment investors in March 2005.Afrox has retained
a significant interest in the hospitals business through a 20 per cent holding in the new company.
In 2001, BOC Distribution Services was re-named Gist to reflect the changing nature of its business.
Gist operates as a separate business unit outside the lines of business structure. It remains focused on developing
business with major customers, including Marks & Spencer, and has developed capability in supply chain consultancy
and end-to-end supply chain solutions.