Slide 1: January - September 2006 Conference Call
January - September 2006 Conference Call Georg Denoke, CFO October 31, 2006
Slide 2: Contents
Contents 06 The Linde Group 09 Gas & Engineering 11 Linde Gas 18 Linde Engineering 21 KION Group 07/11/2006 2
Slide 3: 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 4: Changes in accounting policy
Changes in accounting policy Linde AG adopted the mandatory IFRIC 4 „Determining whether an arrangement contains a lease“ for the first time in January 1st, 2006. Due to the respectively required change in accounting policy, the comparative figures have been restated („restated“). 07/11/2006 4
Slide 5: Impact of changes in accounting policy
Impact of changes in accounting policy January to Group income statement September Year in € million 2005 2005 Net income - as reported 317 501 Previously unrecognized actuarial gains/losses in relation to the measurement of pension obligations (IAS 19) 6 - Adjustments to net income due to the chang
Slide 6: Key facts
Key facts — BOC consolidation as off 5 September, 2006 — Sales rise 15.2% to € 7,943 billion — Increase in operating profit of 31.2% to € 778 million — EPS improved by 23.4% to € 3.38 (2005: € 2.74) — Outlook for FY 2006 re-iterated: increase in sales and EBIT on comparable basis 07/11/2006 6
Slide 7: Income Statement
Income Statement — Sales advance by 15.2% to € 7,943 billion (+8.5% excl. consolidation of BOC) — EBIT improves by 31.2% to € 778 million (+19.9% excl. consolidation of BOC) — Financial result includes € 50 million of extraordinary forex gains on the bridge financing In € million Q3 06 ∆ 9M 06 ∆ Sal
Slide 8: Key Financials
Key Financials In € million 9M 05 9M 06 Operating cash flow 824 895 Free Cash Flow 233 -11,069 Capex (excl. financial assets) 610 591 Net interest -76 -58 EBITDA / Net interest 15.1 24.0 Net debt* 1,926 12,815 Gearing ** 43.6% 189% * Financial debt – cash & cash equivalents and securities (excl. res
Slide 9: Gas & Engineering
Gas & Engineering rt LD THE LINDE GROUP
Slide 10: Gas & Engineering
Gas & Engineering — Sales increase by 6.6% to € 4,585 billion — EBIT strengthened by 18.5% to € 653 million In € million Q3 06 ∆ 9M 06 ∆ Sales 1,524 2.0% 4,585 6.6% EBITDA 324 9.8% 959 13.1% Margin 21.3% - 20.9% - EBIT 225 14.2% 653 18.5% Margin 14.8% - 14.2% - EBT 207 11.9% 606 19.8% 07/11/2006 10
Slide 11: Linde Gas
Linde Gas — Sales rise 7.0% to € 3,571 billion — EBIT increases by 13.9% to € 581 million — EBIT margin at 16.3% versus 15.3% last year In € million Q3 06 ∆ 9M 06 ∆ Sales 1,183 3.4% 3,571 7.0% EBITDA 293 6.5% 881 10.0% Margin 24.8% - 24.7% - EBIT 196 10.1% 581 13.9% Margin 16.6% - 16.3% - EBT 175 6.
Slide 12: Linde Gas - sales bridge 9M 06: underlying growth of 6.8%
Linde Gas - sales bridge 9M 06: underlying growth of 6.8% — 9 M 2005 restated by 60 million because of embedded financial lease in Mio. € +7,0% +7,0% +6,8% +0,8% -0,8% +0,2% 3.571 3.338 9M 2005 Currency Consolidation Natural Gas Volume/Price 9M 2006 07/11/2006 12
Slide 13: Linde Gas – Regional Sales
Linde Gas – Regional Sales — Underlying sales growth in all world regions — Strongest momentum in key growth areas Asia / Pacific and Eastern Europe In € million 9M 05 9M 06 ∆ ∆ excl. currency Germany 685 737 7.6% 7.6% Europe excl. Germany 1,615 1,704 5.5% 5.4% North America 654 687 5.0% 3.6% South
Slide 14: Linde Gas – Product Segment Sales
Linde Gas – Product Segment Sales — On-site sales keep double-digit growth track — Ongoing good momentum in bulk and healthcare — Also cylinder turnover stays on solid growth path In € million 9M 05 9M 06 ∆ ∆ excl. currency Bulk 906 988 9.1% 7.8% Cylinder 1217 1293 6.2% 5.4% On-site 775 856 10,5% 9.
Slide 15: Linde Gas - Healthcare Sales
Linde Gas - Healthcare Sales — Overall increase of 7.8% (6.8% excluding currency) — Ongoing good momentum in the homecare market — INO still growing very strongly In € million 9M 05 9M 06 9M ∆ Institutional 311 324 4.2% Homecare 132 145 9.8% INO 83 98 18.1% Healthcare 526 567 7.8% 07/11/2006 15
Slide 16: Gas – stable, profitable growth
Linde Gas – stable, profitable growth — Underlying sales growth at attractive 6.8% in the first 9 months 2006 — Strong contribution from growth regions Asia and Eastern Europe — All product segments support the growth track — Ongoing strong momentum in On-site — Linde Gas is at the leading edge in t
Slide 17: BOC
BOC — Consolidated in the nine-months figures starting 5 September 2006 — Q3 performance in line with expectations — Growth supported by all regions and business lines In € million 9M 06 (as consolidated) Sales 461 EBITDA 105 Margin 22.8% EBIT 67 Margin 14.5% EBT 72 07/11/2006 17
Slide 18: Linde Engineering
Linde Engineering — Sales of € 1,098 billion slightly behind last year´s record level — EBIT advanced by 20.0% to €66 million — Industry environment stays very supportive In € million Q3 06 ∆ 9M 06 ∆ Sales 377 -8.3% 1,098 -3.3% EBITDA 28 12.0% 78 18.2% Margin 7.4% - 7.1% - EBIT 24 9.1% 66 20.0% Marg
Slide 19: Engineering – unbroken momentum in order intake
Linde Engineering – unbroken momentum in order intake — New orders worth 2,419 billion are 20.8% above last year´s high level — Nine-months order intake by segment: Others 6% Olefins 17% Natural Gas 11% Air Separation 51% Syngas 15% Record order backlog of € 4,519 bn (+36.7% since year-end 2005) 07/
Slide 20: Engineering – strong demand across all end markets
Linde Engineering – strong demand accross all end markets — Major order for GTL in Qatar reflects broad market potential in the energy sector — Strong fundamentals in the industrial gas market feed the order pipeline in air separation and syngas / hydrogen — Two more orders for LNG (Wesfarmers, Aust
Slide 21: KION Group
KION Group rt LD THE LINDE GROUP
Slide 22: KION Group
KION Group — Sales take full advantage of end market growth: increase of 14% to € 2,902 billion — EBIT advances 31.3% on last year to € 172 million In € million Q3 06 ∆ 9M 06 ∆ Sales 969 10.5% 2,902 14.0% EBITDA 144 8.3% 422 13.1% Margin 14.9% 14.5% - EBIT 56 5.7% 172 31.3% Margin 5.8% 5.9% - EBT 63
Slide 23: KION Group – 9M 2006 market growth (order intake)
KION Group – 9M 2006 market growth (order intake) Counterbalance Trucks Warehouse Trucks 60% 49% 50% 46% 40% 30% 25% 17% 19% 18% 20% 16% 16% 15% 13% 13% 13% 10% 7% 0% Europe Eastern N. America S. America Asia Others World -10% Europe -8% -20% Total 14% 47% 9% 23% 18% 10% 14% 07/11/2006 23
Slide 24: KION Group: Operating performance on solid growth track
KION Group: Operating performance on solid growth track — Strong end markets leveraged into double-digit sales growth — Growth in global order intake of 14% supported by all world regions — Asia (China) and Eastern Europe show again the strongest underlying increase — Strong industry fundamentals ba
Slide 25: Thank you for your attention.
Thank you for your attention.