Slide 1: Linde and Praxair: A Compelling Combination
Linde and Praxair: A Compelling Combination 02 June 2017
Slide 2: Linde and Praxair: A Compelling Combination
Linde and Praxair: A Compelling Combination Leverages unique strengths of each company to create a global industrial gas leader ‒ Linde’s engineering & technology and Praxair’s operational excellence Strategic Establishes strong positions in all key geographies and end-markets ‒ More balanced and di
Slide 3: Creating A Global Industrial Gas Leader…
Creating A Global Industrial Gas Leader… Industrial Gas Landscape1 ($ B) Sales By Geography2 Captive 38* Americas EMEA ~$12 B ~$8 B 22 29 8 25* Other Asia/Pacific Others3 ~$3 B ~$6 B … Across a much broader global footprint 1 Sales based on 2016 public filings. Air Liquide includes 12 months of Airg
Slide 4: Leverages Complementary Strengths…
Leverages Complementary Strengths… Core Competencies • Engineering & Technology • Operational excellence • HyCO • Standardized ASUs Product Lines • Large ASUs • Non-cryo • Chemicals & Energy • Petrochemicals End-Markets – H2, LNG, CCS, EOR – US Gulf Coast • Healthcare • Metals • EMEA • North America
Slide 5: Establishes A More Balanced Portfolio…
Establishes A More Balanced Portfolio… Geography1 End-Markets1 Supply Mode1 10% 10% 19% 19% 25% 24% 25% 21% 43% 7% 7% 18% 37% 25% 26% 13% 28% 26% 17% Americas Chemicals & Energy Electronics On-site EMEA Manufacturing Other Bulk Asia/Pacific Healthcare Cylinder2 Other Metals & Glass Other Food & Beve
Slide 6: Combination Would Yield ~$1.2 B Synergies & Efficiencies…
Combination Would Yield ~ $1.2 B Synergies & Efficiencies… Cost Synergies & Efficiencies1 ~$1.2 B Capex ~$0.2 B COGS COGS Supply • Time to achieve ~ 3 years after closing SG&A Supply SG&A Chain/ / • Cost to implement ~ $1.0 B Cost Chain ~$1.0 B Other Other Cost Synergies & Efficiencies1 Capex Synerg
Slide 7: …And Create Value For All Stakeholders
…And Create Value For All Stakeholders Deep & innovative Comprehensive product offerings products & services Broader end-market Enhanced Superior Wider global reach / applications Technology Customer accelerated deployment Cost efficient Capability Offerings Further enhanced solutions su
Slide 8: Strong Balance Sheet and Cash Flow
Strong Balance Sheet and Cash Flow 2016 Financials ($ B) Targeted Combined1 Total4 Savings3 Sales $28.7 $28.7 2 Adj. EBITDA $8.0 $1.0 $9.0 Adj. EBITDA Margin2 28.1% 31.5% Operating Cash Flow $6.1 $0.7 $6.8 Capex ($3.4) $0.2 ($3.2) Free Cash Flow2 $2.7 $0.9 $3.6 Net Debt/Adj. EBITDA2 2.1 1.9 Greater
Slide 9: Integration and Execution
Integration and Execution • Established integration framework − Joint integration committee with executive oversight − Synergy targets aligned − Agreed-upon priorities • Lay the foundation for the new company − Guiding principles: one team, one vision, one operating model, shared values − Performanc
Slide 10: Key Next Steps and Timeline
Key Next Steps and Timeline Board approvals / Completion of review of Praxair shareholder BCA signed offer documents by vote / Linde US SEC / German BaFin exchange offer H2 2018 01 June 2017 Q3 2017 Q4 2017 Regulatory approval / expected closing H2 2018 Regulatory Review and On-going Integration Pla
Slide 11: Appendix
Appendix LO . =224PRAXAIR THE LINDE GROUP Making our planet more productive
Slide 12: Key Terms Of The Combination
Key Terms Of The Combination • All-stock merger transaction • Linde shareholders to receive 1.540 shares in the new company for each Linde share exchanged Structure • Praxair shareholders to receive one share in the new company for each Praxair share • Linde and Praxair shareholders each own approxi
Slide 13: Shared History and Heritage
Shared History and Heritage Carl Linde founds “Gesellschaft für Linde’s Eismaschinen” in Wiesbaden Carl Linde successfully liquefies atmospheric air; and receives a patent Linde Air Products formed in US Linde Linde Air Products sold to Union Carbide Regained rights to the name “Linde” in the US Acq
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations (1)(1) AdjustedEBITDA, Adjusted EBITDA,Adjusted AdjustedEBITDA EBITDAMargin Margin Combined($($M) Combined M) Netincome Net incomefromfromcontinuing continuingoperations(including operations(includingnoncontrolling noncontrollinginterests) interests) 2,623 2,623 Add:cost Add
Slide 15: Important Information to Investors and Security Holders
Important Information to Investors and Security Holders Additional Information and Where to Find It In connection with the proposed business combination between Praxair, Inc. (“Praxair”) and Linde AG (“Linde”), Zamalight PLC (“New Holdco”) is expected to file a Registration Statement on Form S-4 wit
Slide 16: Linde Investor Contact, Praxair Investor Contact
Linde Investor Contact Praxair Investor Contact Bernard Wang Juan Pelaez bernard.wang@linde.com Juan_Pelaez@praxair.com +49 89 35757 1328 +1 203 837 2213 www.lindepraxairmerger.com