A Balanced Capital Ecosystem for Industrial Gases (2026–2030)
1️⃣ 60-Second Board Opening
“We are shifting from volume-driven growth to a balanced capital ecosystem that systematically strengthens Free Cash Flow and maintains ROICE above the cost of capital.
This model aligns revenue quality, working capital velocity, and disciplined capital allocation to ensure resilience in downturns and compounding value over the long term.”
“Growth is not rejected — it is filtered.
We only grow in ways that make the cash engine stronger.”
2️⃣ Executive Entry Brief
Strategic Objective
Build sustainably growing Free Cash Flow that consistently generates ROICE above WACC, reinforcing long-term market value and resilience.
Why Change?
The Industrial Gas sector faces:
• Energy volatility
• Capital intensity
• Long asset lives
• Competitive volume pressure
Volume growth alone does not ensure value creation.
Capital discipline does.
The Balanced Capital Ecosystem
The system aligns five structural levers:
1️⃣ Revenue Growth (Energy of the system)
2️⃣ Contribution Margin (Quality of growth)
3️⃣ Cash Conversion Cycle (Capital velocity)
4️⃣ ROICE–WACC Spread (Capital discipline)
5️⃣ Free Cash Flow Growth (Outcome)
All must move in harmony.
Governance Mechanism
• Mandatory ROICE–WACC filter before capex approval
• AI-Orchestrator simulation of capital impact
• CCC embedded in management KPIs
• Hybrid sales incentives (Revenue + Margin + Cash)
• Segment-level customer profitability monitoring
AI informs.
People decide.
Board governs.
First Visible Signal
Optimize Cash Conversion Cycle.
Why?
• Immediate cash release
• Low strategic risk
• Cultural shift toward capital intelligence
• Foundation for capex discipline
3️⃣ Capital Market Narrative
What We Measure
• FCF CAGR
• ROICE spread trend
• Capital intensity trajectory
• Volatility compression
• Customer profitability stability
Why This Wins Over Time
Short Term (0–2 years):
Improved liquidity and discipline.
Medium Term (3–5 years):
Superior capital efficiency vs peers.
Long Term (10–20 years):
Structural compounding advantage.
Enterprise Value = FCF × Multiple.
Higher FCF + Lower Volatility → Multiple Expansion.
The Philosophy in One Sentence
We only grow when growth strengthens our cash engine.
The Leadership Principle
This is not an algorithm.
It is a people-led capital architecture supported by AI intelligence.
The system supports decision-makers.
It does not replace them.
The Strategic Ambition 2026–2030
Free Cash Flow Driven Growth™
Powered by People
Enabled by AI
Measured by ROICE–WACC Spread
Validated by Market Value Creation
This is coherent.
Strategic positioning.
Governance blueprint.
Capital market narrative.
Aligned. – Josef David
Case: Free Cash Flow Driven Growth in Industrial Gases
The Complex Way (Old Model)
- Hundreds of KPIs
- Long meetings
- Budget politics
- Reactive decisions
- Growth measured by revenue
Result: Capital heavy. Slow. Fragile.
The RapidKnowHow Way (Simple Question)
What actually increases company value?
Answer:
Free Cash Flow.
Why?
Because:
FCF → Higher ROCE → Higher Multiple → Higher Market Value.
That’s it.
AI Applied Simply
AI does three things:
- Predict demand better
- Optimize working capital
- Remove human reporting noise
Result:
- Faster decisions
- Better capital allocation
- Compounded FCF
If a system increases FCF sustainably above cost of capital — keep it.
If not — kill it.
Clarity > Activity. – Josef David
