Linde Plc · NASDAQ:LIN
Linde — Praxair — Q3 2017 Earnings Presentation
25 slides from Linde's earnings presentation, Oct 26, 2017
Slide 1: Investor Teleconference Presentation Third Quarter 2017
Investor Teleconference Presentation Third Quarter 2017 Praxair, Inc. October 26, 2017 Filed by Praxair, Inc. Pursuant to Rule 425 under the Securities Act of 1933 Subject Companies: Praxair, Inc. (Commission File No.: 001-11037) Linde AG Commission File No. for Registration Statement on Form S-4: 3
Slide 2: Forward Looking Statement
Forward Looking Statement This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s reasonable expectations and assumptions as of the date the statements are made but involve risks and un
Slide 3: Stephen F. Angel, Chairman and Chief Executive Officer
Praxair, Inc. Stephen F. Angel Chairman and Chief Executive Officer
Slide 4: 3Q17 Global Trends
Asia 16% Europe 14% South America 13% North America 52% Double-digit volume growth Positive price attainment New project wins Strong electronics end-market Continued steady growth Strong food & beverage volumes Continued economic weakness Political uncertainty Lower inflation Growth across all end-m
Slide 5: Linde and Praxair Proposed Merger Update
Linde and Praxair Proposed Merger Update Shareholder Approval Regulatory European Union: Parties engaged in pre-notification phase with the EU Commission United States: Linde AG and Praxair filed with the FTC, each company responding to second request All other jurisdictions: filings in progress Rus
Slide 6: Matthew J. White, Senior Vice President and CFO
Praxair, Inc. Matthew J. White Senior Vice President and Chief Financial Officer
Slide 7: Third Quarter Results
Non-GAAP measures, other than sales and operating cash flow. See Appendix. (2) Diluted EPS attributable to Praxair, Inc. shareholders. Ex cost pass-thru and currency: Sales +6%, OP +7% Hurricanes negatively impacted EPS ~ $(0.02) Price attainment in NA, Europe and Asia YoY volume growth across all e
Slide 8: Cash Flow Generation
Cash Flow Generation 3Q 2017 Free Cash Flow Use Non-GAAP measure. Free cash flow equals operating cash flow minus capital expenditures Paused stock buybacks during proposed merger Anticipate further debt reduction Free Cash Flow (FCF)1 Operating Cash Flow Trend ($MM) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q
Slide 9: 2017 Guidance Update
2017 Guidance Update Full year 2017 guidance does not include transaction and other costs primarily related to potential Linde merger. *Non-GAAP measure. See Appendix for reconciliation. Full-Year 2017 EPS in the range of $1.45 to $1.50 4Q guidance includes ~ $(0.02) headwind from continued hurrican
Slide 10: Appendix
Appendix | 2MPRAXAIR October 26, 2017 10
Slide 11: North America
North America Sales ex. cost pass-thru +5%, OP +6% Includes negative impact of hurricanes YoY volume growth driven by electronics, aerospace, manufacturing and metals Continued price attainment in merchant and packaged gases New onsite win in the electronics end-market ($ MM) Third Quarter 2017 Seco
Slide 12: Europe
Europe YoY volume growth driven by metals, food & beverage and manufacturing Seq. lower volumes due to seasonality Price attainment in most countries CO2 source outage negatively impacted operating leverage Currency tailwind from Euro appreciation ($ MM) Third Quarter 2017 Second Quarter 2017 Third
Slide 13: South America
YoY volume growth driven by chemicals, metals and project start-ups Seq volume growth led by metals Operating margin challenges: Political uncertainty Continued weakness in the industrial economy adversely affecting merchant and packaged volumes Lower inflation impacting price Continuing to align or
Slide 14: Asia
Asia ($ MM) Third Quarter 2017 Second Quarter 2017 Third Quarter 2016 Sales $451 $422 $391 Segment OP $88 $80 $68 Operating Margin 19.5% 19.0% 17.4% YOY 3Q vs. 2Q Sales Growth + 15% + 7% Volume + 13% + 4% Price / Mix + 2% + 2% Cost pass-thru + 1% -- Currency + 1% + 1% Acq/Div - 2% -- YoY volumes: El
Slide 15: Surface Technologies
Continued growth in aerospace end-market Industrial gas turbines remain weak Surface Technologies ($ MM) Third Quarter 2017 Second Quarter 2017 Third Quarter 2016 Sales $157 $151 $150 Segment OP $27 $25 $26 Operating Margin 17.2% 16.6% 17.3%
Slide 16: 3Q17 Backlog - $1.5B Capital Expenditures
3Q17 Backlog - $1.5B Capital Expenditures (XX) Indicates expected startup year BASF/Yara JV Hydrogen 170MM SCFD Nitrogen 2,000 TPD (2017) ASU – Air separation unit(s) VPSA – Vacuum pressure swing adsorption TPD – Tons per day SCFD – Standard cubic feet per day North America ~80% Asia ~20% South Amer
Slide 17: Global End-Market Trends
Global End-Market Trends * Excludes impact of currency, natural gas/precious metals cost pass-through and acquisitions/divestitures. 3Q17 Sales Growth* 3Q17 % of Sales YOY Vs. 2Q17 Manufacturing (22%) + 4% -- YoY growth in all regions Metals (17%) + 9% + 6% North America, Asia and Europe Energy (11%
Slide 18: Strategy
2015 2016 2017 2018+ Strategy Grow profitably regardless of the macroeconomic environment Price Management Cash Flow Productivity Align with market realities Optimize Base Business Healthcare Food & Beverage Environmental Grow Resilient End-Markets Specialty Gases Aerospace U.S. Gulf Coast focus Str
Slide 19: Non-GAAP Measures
Non-GAAP Measures ;2AaPRAXAIR eed PRAXAIR, INC. AND SUBSIDIARIES ‘SUMMARY NON-GAAP RECONCILIATIONS (UNAUDITED) ‘except per share amounts) Operating Profit 72017, 72016 2016 Quarter Ended September 30 ported GAAP Amounts $2922 $ 2716 $ 66 $ 47 S$ 49 $ 30 $ 145 $ 118 Transaction costs (a) - - 14 = 13
Slide 20: Non-GAAP Measures, continued
Non-GAAP Measures, continued
Slide 21: Non-GAAP Measures, continued
Non-GAAP Measures, continued
Slide 22: Non-GAAP Measures, continued
Non-GAAP Measures, continued
Slide 23: Non-GAAP Measures, continued
Non-GAAP Measures, continued
Slide 24: Sustainable Development Highlights
Sustainable Development Highlights
Slide 25: For further information, please contact: Investor Relations
For further information, please contact: INVESTOR RELATIONS Phone: (203) 837-2213 Juan_Pelaez@praxair.com www.praxair.com/investors