Slide 1: January – September 2007 Conference Call
January – September 2007 Conference Call Georg Denoke, CFO October 30, 2007
Slide 2: Disclaimer
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 carefully conside
Slide 3: Highlights
Highlights Ongoing underlying growth in operating performance — Group sales increase by 14.7% to € 8.958 bn after 9 months, Q3 sales up 18.6% to € 3.070 bn — 9M operating profit up by 16.7% to € 1.770 bn, 20.7% increase in Q3 to € 612 mn — Nine-months reported EPS rises to € 4.48 (06: € 3.38), on ad
Slide 4: Group Sales by segment, in € million
Group Sales by segment, in € million Q3 2006 Q3 2007 9M 2006 9M 2007 18.6% 14.7% 8,958 3,070 7,811 2,588 2,067 11.1% 2,297 6,279 9.1% 6,850 Gases Engineering 419 67.3% 701 1,211 51.5% 1,835 Corp./Cons. 102 -29.4% 72 321 -15.0% 273 4
Slide 5: Group Operating profit by segment, in € million
Group Operating profit by segment, in € million Q3 2006 Q3 2007 9M 2006 9M 2007 16.7% 20.7% 1,770 612 1,517 507 507 14.8% 582 1,524 12.0% 1,707 Gases Engineering 38 63.2% 62 106 50.9% 160 Corp./Cons. -38 15.8% -32 -113 14.2% -97 Op. margin 19.6% 19.9% 19.4% 19.8% 5
Slide 6: Gases Division Key Figures
Gases Division Key Figures — Sales increase of 7.5% on comparable basis for the nine-month period — Operating profit rises 12.0% to € 1.707 bn — Embedded Financial Lease impact on operating profit of € -96 mn in 9M — Operating margin further on positive trend (+60 bp per September 07) In € million Q
Slide 7: Solid growth momentum in all regions
Solid growth momentum in all regions Europe — Strong organic growth all across Europe Sales: € 3,483 mn — Further consolidations in Turkey and Algeria add to our market position in (7.8%/6.0% comp.) attractive growth regions — North America: € 1,493 billion (2.6%/6.9% comparable) America/Africa — Ne
Slide 8: Gases Division Sales by product segment, 9M 2007
Gases Division Sales by product segment, 9M 2007* 9M 2006 9M 2007 734 Healthcare 674 8.9% 1,567 Tonnage 1,431 9.5% 2,103 1,982 6.1% Bulk Cylinder 2,519 7.7% 2,714 * In € million, unconsolidated, comparable (excluding currency, consolidation and natural gas price effects) 8
Slide 9: Gases Division Impact of disposals and acquisitions, 9M 2007
Gases Division Impact of disposals and acquisitions, 9M 2007 (in € million) Sales Operating Profit 9.1% 12.0% 6,850 1,707 207 Disposals 56 6,279 274 Acquisitions 74 1,524 206 50 6,369 1,474 8.5%* 1,577 6,073 7.5%* Cont. operations 9M 2006 9M 2007 * Comparable growth 9M 2006 9M 2007 9
Slide 10: Gases Division Proportionate contribution of JVs, 9M 2007
Gases Division Proportionate contribution of JVs, 9M 2007 (in € million) Sales (like-for-like) Net Income (like-for-like) 12.4% 615 547 115 JV disposals 106 8.5% 40.5% 59 10 500 42 0% JVs 441 13.4% 10 49 32 53.1% 9M 2006 9M 2007 9M 2006 9M 2007 10
Slide 11: Engineering Division Key Figures
Engineering Division Key Figures — Order intake as of September close to high level of 2006 Others 6% — Nine-months sales rise 51.5% to € 1.835 bn HyCo Olefin 17% 35% — Increase in 9-months operating profit of 50.9% to € 160 mn Order intake — Order backlog stable at € 4.6 bn per September Natural 9M
Slide 12: Net debt of € 6.951 billion
Net debt of € 6.951 billion Year-end net debt expected to be below € 7.2 billion in Mio. € 9.933 125 3.542 1.238 1.170 237 6.951 273 331 31/12/2006 Consolidation Disposals Net Operating Interest Dividends Others 30/09/2007 investments Cash flow 12
Slide 13: Capital market debt Solid maturity profile
Capital market debt Solid maturity profile No major maturities until April 2012 after issuance of senior benchmark bonds in April at attractive rates: € 1 bn, 5 year with fixed coupon of 4,375% (at midswap + 24bp) € 1 bn, 10 years with fixed coupon of 4,750% (at midswap + 45 bp) GBP 300 mn, 16 years
Slide 14: Group – Cash Flow Statement Key elements
Group – Cash Flow Statement Key elements (In € million) Q1/2007 Q2/2007 Q3/2007 9M 2007 9M 2006 Operating profit before unusual items 569 589 612 1,770 1,390 Change in Working Capital -79 70 -2 -11 235 Funds from operations 490 659 610 1,759 1,625 P&L Taxes as reported -201 -94 -64 -359 -279 Accrued
Slide 15: Synergy ramp-up / run-rate
Synergy ramp-up / run-rate End of 2008: € 250 m In € million 30% 2007 100 15% Supply 20% Procurement 25% 65% G&A 45% 0 End 2006 Q1 Q2 Q3 Q4 — Confirmation of € 50 mn P&L impact in 2007 — G&A initiatives largely contribute to the impact in 2007, mainly driven by FTE reduction; Former BOC’s headquarte
Slide 16: Outlook: Double-digit growth of sales and operating profit in 2007
Outlook Double-digit growth of sales and operating profit in 2007 2007: Group — Sales of more than € 12 bn — Operating profit of € 2.3 -2.4 bn — Nebt debt to be below € 7.2 bn Gases Division — Sales increase above market growth — Overproportionate increase of operating profit — Further significant i
Slide 17: Appendix
Appendix rt LD THE LINDE GROUP
Slide 18: Income Statement
Income Statement — Sales increase by 14.7% to € 8.958 bn — Accelerating improvement in operating profit to € 1.770 bn (+16.7%) — PPA impact of € -335 mn (€-134 mn in Q3), book gain on disposals of € 574 mn In € million Q3 07 ∆ yoy 9M 07 ∆ yoy Sales 3,070 18.6% 8,958 14.7% Operating profit* 612 20.7%
Slide 19: Gases Division Sales bridge 9M/07: underlying growth of 7.5%
Gases Division Sales bridge 9M/07: underlying growth of 7.5% In € million 6,850 +4.4% +7.5% 6,279 -2.3% -0.5% 554 451 9M 2006 Currency Natural gas Price/Volume Consolidation 9M 2007 19
Slide 20: Thank you for your attention
Thank you for your attention rt LD THE LINDE GROUP