Linde Plc · NASDAQ:LIN
Linde — Deutsche Bank German Corporate Conference 2005
31 slides from Linde's conference presentation, Jun 1, 2005
Slide 1: Deutsche Bank German Corporate Conference
Linde Group Linde Group Deutsche Bank German Corporate Conference Prof. Dr. Wolfgang Reitzle, President and CEO of Linde AG June 1, 2005 1
Slide 2: Disclaimer
Linde Group Disclaimer This investor presentation has been prepared independently by Linde AG (“Linde”). The presentation contains statements which address such key issues as Linde’s growth strategy, future financial results, market positions, and product development. Such statements should be caref
Slide 3: Linde Group
Linde Group Linde Group Material Handling Gas Engineering Forklift Trucks Industrial Gases Air Separation Plants Hydrogen Plants Warehouse Trucks Healthcare Natural Gas Plants Hydraulic Systems Ethylene Plants Linde is a portfolio driven company. Every Division must …. — have a leading market positi
Slide 4: Leading market position in all activities
Linde Group Leading market position in all activities Business Segment Market Position Main Competitors Linde Gas No. 2 in Europe Air Liquide, BOC, No. 5 worldwide Praxair, Air Products Linde Engineering Top 1-3 position Air Liquide, Technip in all activities Material Handling No. 1 in Europe Toyota
Slide 5: Strong performance of all key metrics
Linde Group Strong performance of all key metrics — Sales increase supported by steady growth in the order book — EBITDA and EPS outpace sales growth — Working capital reduction of €905 million over 3 years — All divisions contribute positive cash flow — Reduction in net debt has brought gearing dow
Slide 6: ROCE
Linde Group ROCE We use ROCE as the key measure of success in the individual business segments and for the Group. 2002 2003 2004 Target 10% Group 7.0% 7.7% 9.5% (2005) 13% Linde Gas 9.6% 10.1% 10.9% (2008) 16% Linde Engineering 13.3% 11.7%* 17.0% (2005) 16% Material Handling 8.7% 9.7% 12.0% (2007) *
Slide 7: Good performance in Q1 2005
Linde Group Good performance in Q1 2005 (numbers excluding Refrigeration and amortization of goodwill) — Sales plus 6.9% to €2,124 million — Incoming Orders up 8.2% to €2,353 million — EBITA plus 13.0% to €165 million — Net profit increased 9.0% to €85 million — EPS of €0.71 (2004: €0.65) 7
Slide 8: Q1 2005: Growth in all business segments
Linde Group Q1 2005: Growth in all business segments — Linde Gas & Engineering — Sales up 9.0% to €1,339 million — EBITA plus 11.8% to €170 million — Linde Gas — Sales up 7.8% to €1,038 million — EBITA plus 10.1% to €164 million — Linde Engineering — Sales up 23.1% to €357 million — Incoming orders
Slide 9: Outlook 2005
Linde Group Outlook 2005 — Group: Increase in sales and EBITA — Group: Capex (excl. financial assets) around €1bn (2004: €1bn) — Linde Gas: Increase in sales and EBITA — Linde Engineering: Sales and EBITA at least on last year‘s high level — Material Handling: Increase in sales and significant impro
Slide 10: Linde Gas
Linde Group Linde Gas 10
Slide 11: Q1 2005: Sales growth in all regions and products segments
Linde Group Q1 2005: Sales growth in all regions and products segments South Asia/Pacific America 36 Healthcare Bulk 70 Germany 170 279 223 North America 203 On-site Rest of 231 Europe Cylinder 506 391 € million € million YoY (excl. currency) YoY (excl. currency) Germany +2.8% Bulk +6.3% (+5.7%) Res
Slide 12: Focus lays on profitable growth
Linde Group Focus lays on profitable growth Sales development 2000 – 2004 Linde has a consistantly high by Product Segments EBITDA margin in the indusrty 4,144 3,466 +15.5% 28 634 15% +53.1% 27 12% 414 26 EBITDA Margin (%) 1,568 38% Linde -0.4% 25 BOC 45% 1,575 Air Products 24 Air Liquide Praxair 1,
Slide 13: Efficiency Improvement and Growth Initiatives
Linde Group Efficiency Improvement and Growth Initiatives — „Fit-For-Future“ program will be completed this year and lead to total improvements of €150 million — Start of the „GAP“ program (Growth and Performance) in 2005 — 2/3 of initiatives focused on profitable growth — 1/3 of initiatives lead to
Slide 14: On-Site
Linde Group On-Site — Sales 2004: €821million (2003: €772 million, +9% excluding currency) — High hurdle rates for new investments (IRR, ROCE) ensure high profitability — Stable business due to long-term take or pay contracts — Competitive advantage of Linde Engineering Strategy: — Focus on petroche
Slide 15: On-site: Large project roll-out
Linde Group On-site: Large project roll-out (start-ups 05/06, €380m Capex) Salzgitter AG Avesta Polarit - Germany - Finland Merchant Market Sokolovska uhelna - Russia - Czech Republic Bayer Oltchim S.A. Bayer - Germany - Romania - PR China BorsodChem - Hungary Cognis - France Jianlong Plansee - Aust
Slide 16: Healthcare
Linde Group Healthcare — Top 3 global market position — Sales 2004: €634 million (2003: €575 million, +14% excluding currency) — EBITA margin (appx. 20%) above gas industry average — Low Capex ratio (1:1) supports growth — Annual sales growth target >10%, focus on Homecare and Therapeutic Gases Sale
Slide 17: Homecare: Leading market position in Europe and South America
Linde Group Homecare: Leading market position in Europe and South America — Double-digit sales growth ahead — Homecare presence in 30 countries, but focus on selected geographies — Focus on respiratory therapy — Selective acquisitions to strengthen regional market position in Europe* *Successful int
Slide 18: Eastern Europe
Linde Group Eastern Europe — Fastest growing region in Europe, double-digit growth rates predicted to continue — Linde sales 2004: €430 million (2003: €400 million, +11% excluding currency) — Dominant position: Market shares >> 40% in H, CZ, PL, ROM, Slovakia, Baltics — Ongoing double-digit sales gr
Slide 19: Asia/Pacific
Linde Group Asia/Pacific — Sales 2004 increased to €94 million (2003: €62 million) — Acquisitions in 2004 strengthened market position Top priority: China — Well positioned in regions Shanghai and Fujian — Target: Build-up „one-stop supplier“ position in each region Linde is in — Focus on On-site bu
Slide 20: Linde Engineering
Linde Group Linde Engineering 20
Slide 21: Leading market positions in all activities
Linde Group Leading market positions in all activities Expertise and focus are key to retaining technology leadership Top 3 No. 1 Olefins (29% MS) Air separation (>40% MS) Syngas (25% MS) Natural gas (9% MS) Top 3 Top 3 21
Slide 22: Positive business trend continues in 2005
Linde Group Positive business trend continues in 2005: — Q1 2005: Orders received up 12.3% to EUR 465 m Others Orders received by Business 19% ASU Segments 36% Natrural Gas 13% Syngas Promising outlook for all segments: Olefin 18% 14% — Air Separation: Middle east, China — Olefins: Middle east — Syn
Slide 23: The success factors of Linde Engineering
Linde Group The success factors of Linde Engineering: — Focussed player with Top 1-3 position in all product segments — Excellent order situation (2004 around €1.5 bn, backlog > €2.3 bn) — Promising project outlook for 2005 and onwards — Stable business development due to balanced portfolio of produ
Slide 24: Material Handling
Linde Group Material Handling 24
Slide 25: Material Handling: Successful multi-brand strategy
Linde Group Material Handling: Successful multi-brand strategy Differentiated product range offers the best product for every customer: Clients of different sectors and size have specific needs Product range offers a large choice of technology, service and options Full market coverage with leading p
Slide 26: Efficiency Improvement and Growth Initiatives
Linde Group Efficiency Improvement and Growth Initiatives — „TRIM“ program will be completed this year and lead to improvements of €150m — Start of the „GO“ program (Growth and Operational excellence) in 2005 — Focus on sustainable efficiency improvement in core processes — R & D, production, logist
Slide 27: Innovation: Product Offensive 2005-2007
Linde Group Innovation: Product Offensive 2005-2007 Linde STILL OM Pimespo Large scale product roll-out Counterbalanced 5 3 4 Trucks Warehouse Trucks 7 8 13 2005 2006 2007 27
Slide 28: Linde offers a full range of After-Sales-Service Activities
Linde Group Linde offers a full range of After-Sales-Service Activities — 2004: 40% of Sales, > 50% of Profit - Service/ Fleet New Spare Used Long-term Rental Leasing Mainte- manage- trucks Parts trucks warranties nance ment — Well positioned to control end-market Used Trucks — Development of new ma
Slide 29: Good market position in Eastern Europe and China
Linde Group Good market position in Eastern Europe and China Eastern Europe: — Strongest growing market in Europe, high growth rate in the high margin Counterbalanced Truck business — Good market position in key markets — Strong growth pattern in the Counterbalanced Truck segment — Already dense sal
Slide 30: Summary
Linde Group Summary „Linde Group shows best prerequisites in order to benefit from the high growth potential in the different emerging regions and product segments “ 30
Slide 31: Thank you for your attention.
Linde Group Thank you for your attention. 31
Linde Group — Deutsche Bank German Corporate Conference 2005 on 6ix