Slide 1: January – June 2010 Conference Call
January – June 2010 Conference Call Georg Denoke Member of the Executive Board & CFO 2 August 2010
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 Growth accelerating over H1 2010 Group sales up 11.5% to €6.104 bn, comparable Gases growth improving to 7.1% in Q2 Group operating profit increased 26.4% to €1.396 bn Reported EPS of €2.63 (+78.9%), adjusted EPS of €3.15 (+52.9%) Operating Cash Flow up 7.3% to €902 m, driven by a 17.7% i
Slide 4: Group, sales by Divisions
Group, sales by Divisions Ongoing recovery and currencies drive group sales up 11.5% in € million, H1 2009 H1 2010 as reported 6,104 5,476 +11.5% Gases Division — Comparable* sales growth accelerating to 7.1% in Q2 — Global economic recovery visible in all product areas, strongest growth in tonnage
Slide 5: Group, operating profit by Divisions
Group, operating profit by Divisions 270 bp group margin increase supported by HPO savings in € million, H1 2009 H1 2010 as reported 1,396 Gases Division +26.4% 1,104 — Ongoing double-digit operating profit* growth — Over-proportionate growth compared to sales: operating margin of 27.1%, up 90 bp Yo
Slide 6: Division Gases, sales bridge
Division Gases, sales bridge Q2 sales increase of 7.1% on comparable basis in € million +5.6% 4,931 +6.5% +1.1% 4,350 +0.2% +7.1% +3.9% Q1 10 Q2 10 H1 2009 Consolidation Currency Natural Gas Price/Volume H1 2010 6
Slide 7: Gases Division, sales by operating segment
Gases Division, sales by operating segment Emerging markets show the strongest growth momentum in € million Western Europe Asia & Eastern Europe — Volume recovery in our industrial end markets +7.0% +21.6% 1,066 becoming more and more 1,849 1,979 877 visible — Strongest growth in +4.0%* +12.7%* Emer
Slide 8: Gases Division, operating profit by operating segment
Gases Division, operating profit by operating segment HPO drives operating margin up to 27.1% in € million Western Europe Asia & Eastern Europe — YoY margin improvement in the Gases Division driven +13.0% 572 by strong margin increase +21.4% 323 506 266 in Western Europe and +150 bp 28.9% 30.3% 30.3
Slide 9: Gases Division, sales by product areas
Gases Division, sales by product areas Business environment further improving in all product areas in € million, comparable*, consolidated +5.6% 4,931 4,671* 547 +3.2% Healthcare 530 1,182 Tonnage 1,057 +11.8% Bulk 1,118 +7.6% 1,203 Cylinder 1,966 +1.7% 1,999 *excluding currency, natural gas price a
Slide 10: Gases Division, product areas (comparable YoY growth)
Gases Division, product areas (comparable YoY growth) Cylinder business recovering further Bulk Tonnage 13.3% 9.9% 11.1% 10.3% 6.2% 5.2% 6.9% 0.5% -1.4% -1.7% -3.3% -4.4% -6.5% -6.9% -7.9% -11.1% 9M 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 9M 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Cylinder
Slide 11: Gases Division, project pipeline
Gases Division, project pipeline Strong H1 2010, full pipeline of opportunities — €2.9 bn investments between 2008-2012 (thereof €0.5 bn in JVs @ share) — 65% of project Capex allocated to emerging markets Large projects for ~€450 m decided in H1 2010 Project amount by on-stream date (incl. JVs) Maj
Slide 12: Engineering Division, key figures
Engineering Division, key figures Underlying market environment keeps improving — Strong order intake of small- and mid-sized contracts across all product segments — YoY comparison impacted by mega olefin project (Ruwais, Abu Dhabi) signed in Q2 09 — Order backlog up to €4.315 bn (year-end 2009: €4.
Slide 13: Group, Cash Flow Statement
Group, Cash Flow Statement Operating Cash Flow up 7.3%, driven by 17.7% increase in Q2 in € million Q1 10 Q2 10 H1 10 H1 09 Operating profit 641 755 1,396 1,104 Change in Working Capital -98 -3 -101 10 Other changes -146 -247 -393 -273 Operating Cash Flow 397 505 902 841 Investments in tangibles/int
Slide 14: 2010 outlook
2010 outlook Based on current consensus expectations for a moderate economic recovery Group: Growth in sales and over-proportionate operating profit increase vs 2009, operating profit above record year 2008 — Capital expenditure above 2009 level — Confirmation of HPO programme: €650-800 m of gross c
Slide 15: Appendix
Appendix rt LD THE LINDE GROUP
Slide 16: Group Financial Highlights Q2 2010
Group Financial Highlights Q2 2010 in € million Q2 09 Q2 10 in % Sales 2,781 3,210 +15.4 Operating profit 566 755 +33.4 Margin 20.4 23.5 +310 bp EBIT before PPA depreciation 346 512 +48.0 PPA depreciation 66 72 - EBIT 274 446 +62.8 Financial Result -79 -83 - Taxes 49 93 - Net income 146 270 +84.9 Ne
Slide 17: Group Financial Highlights H1 2010
Group Financial Highlights H1 2010 in € million H1 09 H1 10 in % Sales 5,476 6,104 +11.5 Operating profit 1,104 1,396 +26.4 Margin 20.2 22.9 +270 bp EBIT before PPA depreciation 669 922 +37.8 PPA depreciation 146 125 - EBIT 523 797 +52.4 Financial Result -158 -151 - Taxes 91 163 - Net income 274 483
Slide 18: Gases Division, Joint Ventures
Gases Division, Joint Ventures Asian projects drive growth of our JV sales in € million Proportionate Sales Share of Net Income (not incl. in the Group top-line) (contribution to operating profit) 10 +5.4% 39 +15.4% 172 37 149 H1 2009 H1 2010 H1 2009 H1 2010 18
Slide 19: Group, solid financial position
Group, solid financial position Successful deleveraging rewarded with rating upgrade 2009 Net debt/EBITDA ratio of 2.6x, well within our target range of 2-3x Net debt in € bn Net debt/EBITDA 3,5 12.815 4.8 9.933 3.03 Target 2.7 range: 6.427 6.423 6.119 6.340 2.6 2.0–3.0x 2.5 2.5 2,5 2.02 30/9/06 200
Slide 20: Group, Accounting considerations
Group, Accounting considerations Impact of PPA and EFL Purchase Price Allocation (PPA) IFRIC 4: Embedded Finance Lease (EFL) Impact in H1 2010: €125 m (H1 2009: €146 m) Impact* in H1 2010 : €-58 m (H1 2009 : €-63 m) Expected impact FY 2010: €200-250 m Expected impact* FY 2010: €-112 m *(on Sales and
Slide 21: Definition of financial key figures
Definition of financial key figures Operating Return EBITDA (incl. IFRIC 4 adjustment) excl. finance costs for pensions Profit excl. non-recurring items incl. share of net income from associates and joint ventures adjusted Return Operating profit - depreciation / amortisation ROCE excl. depreciation
Slide 22: Thank you for your attention.
Thank you for your attention.