Slide 1: January – September 2008 Conference Call
January – September 2008 Conference Call Georg Denoke, CFO November 3, 2008
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about Linde AG (“Linde”) and their respective subsidiaries and businesses. These include, without limitation, those concerning the strategy of an integrated group, future growth potential of markets and products, profitability in speci
Slide 3: Highlights
Highlights Ongoing strong operational performance — 9M Group sales growth excl. currency of 11.0% to €9.392 bn — 9M Group operating profit* increases by 12.9% excl. currency to €1.910 bn — 9M Adjusted EPS up 16.6% to €4.14 (2007: €3.55) — Operating cash flow improves 11.2% to €1,301 bn Very solid fi
Slide 4: Group: Sales by Divisions
Group: Sales by Divisions 11.0% growth in Sales excluding currency effects in € m, as reported 8,958 +4.8% 9,392 Gases Division +4.5% 7,157 — Comparable* growth of +8.7% (+9.2% in Q3) Gases 6,850 — 11.6% comparable growth incl. bolt-on acquisitions Engineering Division — Project execution and revenu
Slide 5: Group: Operating Profit by Divisions
Group: Operating Profit by Divisions 12.9% increase in Operating Profit excluding currency effects in € m, 9M 2007 9M 2008 as reported 1,770 +7.9% 1,910 1,819 Gases Division Gases 1,707 — 11.8% operating profit growth excl. currency — Operating margin improvement of 50 bps to 25.4%, despite margin d
Slide 6: Gases Division: Sales bridge
Gases Division: Sales bridge 8.7% comparable growth 11.6% growth including acquisitions in € m +8.7% 7,157 +2.4% -6.2% 6,850 -0.4% 9M 2007 Natural Gas Currency Consolidation Price/Volume 9M 2008 ▸ Highlights | ▸ Operational performance | ▸ Outlook 6
Slide 7: Gases Division Operating Segment Western Europe
Gases Division Operating Segment Western Europe in € m, as reported Sales Operating Profit Operating Margin 2,995 +4.5% 3,131 +4.7% 854 816 27.2% +10 bps 27.3% 9M 2007 9M 2008 9M 2007 9M 2008 9M 2007 9M 2008 9M highlights — Comparable sales growth of 5.9% — Unchanged high activity levels in our majo
Slide 8: Gases Division Operating Segment Americas
Gases Division Operating Segment Americas in € m, as reported Sales Operating Profit Operating Margin 1,837 -10.1% 338 -5.3% 1,652 18.4% +100 bps 19.4% 320 9M 2007 9M 2008 9M 2007 9M 2008 9M 2007 9M 2008 9M highlights — Comparable sales growth of 6.9% — Reported figures reflect H1 2007 disposals and
Slide 9: Gases Division Operating Segment Asia & Eastern Europe
Gases Division Operating Segment Asia & Eastern Europe in € m, as reported Sales Operating Profit Operating Margin +27.4% 1,459 +26.0% 417 28.9% -30 bps 28.6% 1,145 331 9M 2007 9M 2008 9M 2007 9M 2008 9M 2007 9M 2008 9M highlights — Comparable sales growth of 12.4% — Strategic acquisitions drive rep
Slide 10: Gases Division Operating Segment South Pacific & Africa
Gases Division Operating Segment South Pacific & Africa in € m, as reported Sales Operating Profit Operating Margin 947 +2.3% 969 222 +2.7% 228 23.4% +10 bps 23.5% 9M 2007 9M 2008 9M 2007 9M 2008 9M 2007 9M 2008 9M highlights — Comparable sales growth of 12.7% — Reported growth impacted by weakness
Slide 11: Gases Division: Sales by products areas (consolidated)
Gases Division: Sales by products areas (consolidated) Stable growth across all four segments in € m, comparable*, 7,157 consolidated 6,585* +8.7% 735 Healthcare +8.2% 679 1,818 Tonnage +6.9% 1,700 +6.2% 1,761 Bulk 1,658 Cylinder 2,548 +11.6% 2,843 *excluding currency, natural gas price and consolid
Slide 12: Gases Division Growth visibility in our project pipeline
Gases Division Growth visibility in our project pipeline — 59 start-ups will deliver new revenue streams by 2010 (incl. JVs) — Project list remains strong, supported by Emerging Markets and energy applications 10 11 30 22 20 Americas Western Eastern Europe / ME 17 Europe China / South and East Asia
Slide 13: Gases Division Joint ventures
Gases Division Joint ventures in € m Proportionate Sales Share of Net Income (not incl. in the Group top-line) (contribution to operating profit) 10 +15.7% 515 44 -2.3% 445 (+21.7% 43 (+6.0% excl. forex) excl. forex) 9M 2007 9M 2008 9M 2007 9M 2008 ▸ Highlights | ▸ Operational performance | ▸ Outloo
Slide 14: Engineering Division Margin remains on high level
Engineering Division Margin remains on high level — Project execution fully on track, order inflow intact Others Olefin 7% 15% — Margin remains industry-leading and above 8% target HyCo 14% — Order backlog standing at €4,632 bn (2007: €4,391 bn) Order Nat. Gas 6% intake 9M 08 ASU 58% in € m 9M 07 9M
Slide 15: Group – Cash Flow Statement
Group – Cash Flow Statement Key elements in € m Q1/08 Q2/08 Q3/08 9M 2008 9M 2007 Operating profit 602 656 652 1,910 1,770 Change in working capital -199 17 -59 -241 -11 Other changes -66 -194 -108 -368 -589 Operating Cash flow 337 479 485 1,301 1,170 Investing activities -256 -313 -322 -891 -771 Di
Slide 16: Sound liquidity position, well spread long term financing
Sound liquidity position, well spread long term financing Refinancing schedules fully covered Balanced maturity profile — €1.8 bn until September 2009 (24% of total gross debt of €7.5 bn) — €2.5 bn between September 2009 and September 2013 (33% of total gross debt), next major maturity in 2011 — €3.
Slide 17: High Performance Organisation (HPO)
High Performance Organisation (HPO) Implementing the next step of our continuous optimisation Continuous transformation towards our vision to be the leading global gases and engineering group BOC Acquisition Integration Synergies HPO Transformation The Linde Group Synergies on track Continuous impro
Slide 18: Outlook takes into account more difficult economic scenario
Outlook takes into account more difficult economic scenario Mid-term targets remain achievable Group — 2008: Sales increase and overproportionate growth of operating profit — 2010: Operating profit above €3 bn and adjusted ROCE of at least 13% achievable — Supported by €250 m synergy cost savings (f
Slide 19: Appendix
Appendix rt LY THE LINDE GROUP
Slide 20: Group: Financial Highlights 9M 2008
Group: Financial Highlights 9M 2008 in € m 9M 2007 9M 2008 Δ in % Sales 8,958 9,392 +4.8 Operating profit 1,770 1,910 +7.9 Margin 19.8% 20.3% +50bps EBIT before special items and PPA depreciation 1,147 1,288 +12.3 Special items 574 59 - PPA depreciation -335 -277 - EBIT 1,386 1,070 - Financial Resul
Slide 21: Group: Financial Highlights Q3/2008
Group: Financial Highlights Q3/2008 in € m Q3/2007 Q3/2008 Δ in % Sales 3,070 3,136 +2.1 Operating profit 612 652 +6.5 Margin 19.9% 20.8% +90 bps EBIT before special items and PPA depreciation 420 446 +6.2 Special items - - - PPA depreciation -134 -92 - EBIT 286 354 - Financial Result -73 -102 - Tax
Slide 22: Accounting considerations: Impact of PPA and EFL
Accounting considerations Impact of PPA and EFL Purchase Price Allocation (PPA) IFRIC 4: Embedded Finance Lease (EFL) Impact in 9M 2008: €277 m (9M 07: €335 m) Impact* in 9M 2008: € -95 million (9M 07: €-101 m) Expected impact FY 2008: €375-425 m Expected impact* FY 2008: €-128 m *(on Sales and EBIT
Slide 23: Definition of financial key figures
Definition of financial key figures Operating Return EBITDA (incl. IFRIC 4 adjustment) excl. finance costs for pensions Profit excl. special items incl. share of net income from associates and joint ventures adjusted Return Operating profit - depreciation / amortisation ROCE excl. depreciation/amort
Slide 24: Thank you for your attention
Thank you for your attention rt LY THE LINDE GROUP