AI-Powered ASSET-LIGHT Conversion — Asset Reduction Potential
Industrial Gases • Capital Employed ↓ • ROCE ↑ • Capex Avoided
Power Executive Summary
- Capital Release: € 210m CE reduction (Sale&Leaseback, Outsource/aaS, NWC optimization, decommission).
- ROCE uplift: 10.3% → 14.7% (constant EBIT); conservative (adjusted EBIT) 14.1%.
- Asset Turnover: 0.86× → 1.22× (Revenue / CE).
- Capex Avoided: ~€ 21m/yr (35% of €60m baseline) → new capex ~€ 39m (6.5% of revenue).
Capital Employed (CE)
€ 700m → € 490m
Release € 210m
ROCE (constant EBIT)
14.7%
from 10.3% baseline
ROCE (adjusted EBIT)
14.1%
EBIT € 72m → € 69m
Capex (annual)
€ 60m → € 39m
Avoided € 21m/yr
Asset Reduction Waterfall (Capital Employed)
| Lever | CE Impact (€m) | Notes |
|---|---|---|
| Sale & Leaseback (non-core sites/equipment) | -€ 80 | Frees cash; converts to opex (lease) |
| Outsource / as-a-Service (fleet, non-critical plants) | -€ 60 | aaS contracts with uptime SLAs |
| NWC Optimization (inventory & AR) | -€ 30 | Pooling, forecasting, risk-scoring |
| Decommission / JV Shared Capacity | -€ 40 | Exit low-utilization assets; JV peak capacity |
| Total Reduction | -€ 210 | CE €700m → €490m |
Scenario
Baseline
CE € 700m
ROCE 10.3% • Turnover 0.86×
Scenario
Asset-Light Lite
CE ~€ 560m (-20%)
ROCE ≈ 12.9% • Turnover ≈ 1.07×
Scenario
Full Asset-Light
CE € 490m (-30%)
ROCE 14.7% (const) / 14.1% (adj) • Turnover 1.22×
Power Decision Request (Board)
- Approve Asset-Light Program (12 months): target CE reduction € 210m with value tracking.
- Launch 3 pilots (100 days): Sale&Leaseback tranche, aaS fleet outsourcing, NWC pooling in 2 clusters.
- Governance: ROCE/Cash PMO, monthly CE & capex dashboards, risk & compliance checkpoints.
