Linde plc · NASDAQ:LIN
Linde — H1 2014 Earnings Presentation
18 slides from Linde's earnings presentation, Jul 29, 2014
Slide 1: Conference Call H1 2014 Results
Conference Call H1 2014 Results Analysts’ Conference Call 29 July 2014
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: Performance H1 2014 Highlights
Performance H1 2014 Highlights [€] H1 2013 H1 2014 yoy [%] yoy [%] fx adj. Revenue [m] 8,207 8,212 + 0.1% + 5.6% Operating Profit* [m] 1,966 1,896 - 3.6% + 1.7% Operating Margin [%] 24.0 23.1 - 90bp EPS reported 3.56 3.36 - 5.6% — Positive revenue development of 5.6% on a currency adjusted basis — S
Slide 4: Group | Revenue and operating profit by division
Group | Revenue and operating profit by division Strong contribution from Engineering affects Group margin [€m] Revenue [€m] Operating Profit 8,207 +0.1% 8,212 - 3.6% 24.0% 1,966 1,896 23.1% 7,021 - 2.8% 6,825 27.3% - 2.7% 27.3% 1,915 1,863 +13.6% 11.9% - 4.7% 9.9% 1,248 1,418 148 141 -62 -31 -97 -1
Slide 5: Gases Division | Revenue bridge
Gases Division | Revenue bridge Price/volume increase of 2.7% [€m] 7,021 + 0.5% - 5.8% + 3.7%* 6,825 + 2.7% 6,646 H1 2013 Natural Gas Currency H1 2013 Price/Volume H1 2014 comparable *adjusted for the expected loss of Healthcare tenders the comparable growth would be 3.7% 5
Slide 6: Gases Division | Revenue by product areas
Gases Division | Revenue by product areas 3.7% growth excl. Healthcare tender effects Comparable growth* [€m] Healthcare +2.7% — Impacted by the expected tender effects in 6,645 6,825 Europe & CB2** in US-market; excluding those effects growth is 6.0% +1.5% Healthcare 1,458 1,480 — Overall positive
Slide 7: Gases Division | Revenue by reporting segment
Gases Division | Revenue by reporting segment Comparable growth in all regions EMEA ASIA/PACIFIC AMERICAS [€m] Revenue [€m] Revenue [€m] Revenue 3,046 2,978 - 2.2% 1,897 1,816 - 4.3% 2,137 2,095 - 2.0% +0.5% +5.4% +3.8% H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 — Tonnage impacted by a — Positi
Slide 8: Gases Division | Operating profit by reporting segment
Gases Division | Operating profit by reporting segment Strong impact by currency headwinds continued EMEA ASIA/PACIFIC AMERICAS Operating profit/margin Operating profit/margin Operating profit/margin [€m] [€m] [€m] 876 889 +1.5% 497 476 542 498 - 4.2% - 8.1% 28.8% 29.9% 26.2% 26.2% 25.4% 23.8% H1 20
Slide 9: Engineering Division | Key figures
Engineering Division | Key figures Strong revenue increase Order Intake Order Backlog Revenue [€m] [€m] [€m] 1,418 1,248 4,504 +13.6% - 8.7% 4,110 2,808 H1 2013 H1 2014 Operating Profit - 62.3% 1,058 [€m] 148 141 - 4.7% 11.9% 9.9% H1 2013 H1 2014 31/12/13 30/06/14 H1 2013 Sales H1 2014 — Revenue dev
Slide 10: Financial Performance | Solid financial position
Financial Performance | Solid financial position Moody’s rating upgrade to A2 — S&P: Rating unchanged | A+/A-1 with stable outlook (12 Dec 2013) — Moody’s: Rating upgrade | A2/P-1 with stable outlook (16 June 2014) Net debt/EBITDA [x] 2.6 2.3 2.3 2.3* 1.9 1.6 2009 2010 2011 2012 LTM LTM 30/06/2013 3
Slide 11: Outlook
Outlook* Well positioned. Short-term outlook Short-term outlook 2014 Revenue Solid increase vs. 2013 adjusted for currency effects Operating Profit Moderate increase vs. 2013 adjusted for currency effects Gases Division Moderate revenue and operating profit increase vs. 2013 adjusted for currency ef
Slide 12: Appendix
Innovati enn Appendix. LL Leading. THE LINDE GROUP
Slide 13: Group | H1 2014 Cash flow statement
Group | H1 2014 Cash flow statement [€m] H1 2013 H1 2014 Operating profit 1,966 1,896 Change in working capital - 287 - 344 Other changes - 487 - 530 Operating cash flow before pension funding 1,192 1,022 Operating cash flow including pension funding 1,192 722 Investments in tangibles/intangibles -
Slide 14: Group | H1 2014 Key P&L items
Group | H1 2014 Key P&L items [€m] H1 2013 H1 2014 ∆ in % Revenue 8,207 8,212 0.1 Operating profit 1,966 1,896 - 3.6 Operating margin 24.0% 23.1% - 90bp PPA depreciation for BOC - 115 - 103 10.4 Depreciation & amortisation (excl. PPA BOC) - 754 - 720 4.5 EBIT 1,097 1,073 - 2.2 Financial result - 186
Slide 15: Group | Currency impact
Group | Currency impact Impact on revenue and operating profit in H1 2014 Negative impact on Group revenue in H1 2014 [€m] 144 20 17 27 22 428 45 25 87 92 USD AUD ZAR GBP VEF CNY BRL INR Other Total Negative impact on Group operating profit in H1 2014 [€m] 34 4 1 3 8 6 7 101 27 22 USD AUD ZAR GBP VE
Slide 16: Gases Division | Quarterly data
Gases Division | Quarterly data Reporting segments EMEA [€m] Q1 2013 Q1 2014 Q2 2013 Q2 2014 Q3 2013 Q4 2013 Revenue 1,497 1,467 1,549 1,511 1,523 1,521 Operating profit 430 429 446 460 438 445 Operating margin 28.7% 29.2% 28.8% 30.4% 28.8% 29.3% Asia / Pacific Q1 2013 Q1 2014 Q2 2013 Q2 2014 Q3 201
Slide 17: Group | Definition of financial key figures
Group | Definition of financial key figures Operating Profit Return EBIT adjusted for amortisation of intangible assets and depreciation of tangible assets Return on Capital Employed (ROCE) Earnings per Share (EPS) Return Return Profit for the period EBIT attributable to Linde AG shareholders Averag
Slide 18: Investor Relations
Investor Relations Financial calendar 9M report 2014: 30 October 2014 Linde share information Type of share: Bearer shares Stock exchanges: All German stock exchanges Security reference number: ISIN DE0006483001 CUSIP 648300 Linde ADR information Ticker Symbol: LNEGY DR ISIN: US5352230204 Depositary