Linde Plc · NASDAQ:LIN
Linde — The Linde Group — Non-Deal Roadshow (February 2007)
27 slides from Linde's roadshow presentation, Feb 8, 2007
Slide 1: The Linde Group. Growing Together. Roadshow
The Linde Group. Growing Together. Roadshow Vienna, 8 February 2007 Thomas Eisenlohr, Head of Investor Relations
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about Linde AG (“Linde”), The BOC Group plc (“BOC”) and their respective subsidiaries and businesses. These include, without limitation, those concerning the strategy of an integrated group, future growth potential of markets and produ
Slide 3: The Linde Group Growing Together: Global leader in industrial gases and engineering
The Linde Group Growing Together Global leader in industrial gases and engineering — Balanced geographic portfolio with excellent exposure to high growth markets — Strong product line portfolio with leading position in growth segments — Strong set-up to drive growth through focused investment Profit
Slide 4: The Linde Group: Global leader in Gas & Engineering
The Linde Group Global leader in Gas & Engineering Pro-forma Gas and Engineering Industrial Gases(1) – Market Share 2005 Revenues 2005 (in €bn) Messer Airgas 1% The Linde 0.5 1.1 6.1 11.3 Nippon Sanso 3% Group 4% 21% Air Products 10% 5.8 Praxair 13% Linde G&E BOC (ISP, PGS, BOC (GIST) Disposals The
Slide 5: Focus on industrial gases: Attractive market characterised by stable growth
Focus on industrial gases: Attractive market characterised by stable growth Strong and stable growth Global Industrial Gases — Growth expectation from 2004 onwards of Market Growth 1999-2009e 7% p.a. — Driven by new applications and outsourcing €51.0 bn — Very stable industry growth (2–2.5x GDP) CAG
Slide 6: The Linde Group
The Linde Group Truly global Leading footprint growth Global leader in industrial gases Performance Integrated organization Engineering solutions 6
Slide 7: Top position at least in all product segments
Top 2 position at least in all product segments Global Cylinder Sales (1) Global Bulk Sales (1) Global Tonnage Sales (1) BOC #1 Linde #1 #2 Linde AL Praxair AP Linde AL Praxair AP AL Linde AP Praxair Group Group Group — Market leader — Market leader — Global #2 position — Highly cash generative busi
Slide 8: A truly global player: #1 or #2 position in 55 countries
A truly global player # 1 or 2 position in 55 countries Market Leader #2 Player Others Present in >70 countries representing >95% of global GDP 8
Slide 9: The Linde Group
The Linde Group Truly global Leading footprint growth Global leader in industrial gases Performance Integrated organization Engineering solutions 9
Slide 10: Ideally positioned in key growth markets and segments
Ideally positioned in key growth markets and segments Leading position in 3 out of 6 growth segments Global market shares per growth segments Geographies(1) Products(3) BOC #1 Linde 35-40% #2 #1 #2 #1 #4 15-20% 15-20% 15-20% 15-20% 15-20% (2) (4) Eastern South Asia Healthcare Speciality Gases Hydrog
Slide 11: Growth region Eastern Europe
Growth region Eastern Europe The Linde Group holds a strong market leadership The The Linde Linde Group Group market market position position — Market Leader in Eastern Europe with >35% market share — Built on historic strong positions Russia #1 of Linde and AGA — Ongoing strong growth in Poland #1
Slide 12: Growth region Asia
Growth region Asia Great exposure to key Asian growth markets The The Linde Linde Group Group market market position position — BOC is the historic market South Korea leader in the Asian market #3 Japan #3 — Asia markets* represent China #2 #1 12% of global market today with 40% growth Pakistan #1 T
Slide 13: Growth region South America
Growth region South America The Linde Group holds a solid #2 position The The Linde Linde Group Group market market position position Caribbean #1 — Strong regional position in key Venezuela South American markets Columbia #1 — Built on historic strong position #1 Ecuador #1 of AGA Peru Brazil — Mar
Slide 14: Growth segments Healthcare and Electronic gases
Growth segments Healthcare and Electronic gases End markets with attractive growth potential Healthcare Gases — Growth markets Homecare and INO • Homecare: demography and pressure on hospital budgets are structural growth drivers • INO: first FDA approved gas based drug — Strong number 2 healthcare
Slide 15: Major tonnage schemes in all world regions
Major tonnage schemes in all world regions Truly global, well balanced Teesside Scandinavia Cluster Russia France Netherlands Central Europe Leuna Cluster Korea US HyCO Dormagen Italy Nanjing China Cluster Pemex, Mexico Venezuela India Map Ta Put Cluster Singapore Cluster Chile Brazil South Africa A
Slide 16: Tonnage: pipeline of upcoming start-ups
Tonnage: pipeline of upcoming start-ups Strong contribution from growth regions Valero Premcor Maksi Group - USA -USA - Russia SeverCorr Bayer BP/Sunoco Corus - USA - PR China - USA - Netherlands Ma Steel Chevron&Holly – PR China - USA Total Elektrostal TISCO Volney - Germany - Ukraine Sinopec - PR
Slide 17: The Linde Group
The Linde Group Truly global Leading footprint growth Global leader in industrial gases Performance Integrated organization Engineering solutions 17
Slide 18: Linde Engineering: Key plant types
Linde Engineering: Key plant types Leading market position in all segments Air Separation Plants Hydrogen and Synthesis Gas Plants Top 1 Top 2 Top 1 Products: Products: — H2/CO/Syngas — Oxygen — Ammonia — Nitrogen — Gas removal — Rare gases — Gas purification Main competitors: Main competitors: Air
Slide 19: Linde Engineering: Engineering and Sales Bases
Linde Engineering: Engineering and Sales Bases Truly global footprint With bases around the world we are able to undertake projects in far-reaching places. Europe* 29% Gothenburg Aldershot Dresden Paris Middle Munich Pfungen Rome East* Dalian Tulsa 38% Peking Seoul Blue Bell Riyadh Hangzhou Abu Baro
Slide 20: Linde Engineering: profitability and growth
Linde Engineering: profitability and growth Strong financial track record 1800 6% 1600 5% 1400 1200 4% 1000 3% 800 600 2% 400 1% 200 0 0% 1998 1999 2000 2001 2002 2003 2004 2005 GEA Sales EBITA-Margin Record order backlog : EUR 4,519 bn at end Q3 2006 (up 36.7% since year-end 2005) 20
Slide 21: The Linde Group
The Linde Group Truly global Leading footprint growth Global leader in industrial gases Performance Integrated organization Engineering solutions 21
Slide 22: 2006: A successful transformation into a pure play
2006: A successful transformation into a pure play Dec 28 Nov 5 Dec 20 Closing of Jan 24 April 21 July 7 July 18 Sale of Sale of Linde KION Group Announcement Syndicated Hybrid FTC-Approval KION Group Australia disposal loan March 6 June 6 July 11 Sept 5 Nov 22 Dec 21 Jan 8 Formal offer EC-Approval
Slide 23: Integration synergies
Integration synergies No pure cost cutting story but still efficiency gains to reap Cost synergies approaching €250m to be achieved Supply — Central overheads Procurement Management/ — US overheads and R&D Production — Overlap in several countries — Procurement — Operating best practice/supply G&A A
Slide 24: Continuous improvement culture: GAP programme
Continuous improvement culture GAP programme: Take the best of both worlds — Strategic programme for future GAP development of the company Linde • Started 2005 — Set up early 2007 with • Growth and ambitious long-term targets efficiency targets following new organisational structure — Balancing prof
Slide 25: Disposals assure a quick start in the deleveraging process
Disposals assure a quick start in the deleveraging process — Successful deleveraging experience from former AGA acquisition — As per 30/09/2006: • Net debt of EUR 12.8 bn • Gearing of 189% — Disposals since Q3/2006: KION Group 8 Linde US ASUs Linde AUS Stake in JAG BOC Poland (1) Proceeds EUR 3,600
Slide 26: The Linde Group Growing Together
The Linde Group Growing Together Global leader in industrial gases and engineering — Balanced geographic portfolio with excellent exposure to high growth markets — Strong product line portfolio with leading position in growth segments — Strong set-up to drive growth through focused investment Profit
Slide 27: Investor Relations Contacts
Investor Relations Contacts Thomas Eisenlohr, Head of Investor Relations Phone +49 89 357 57 1330 thomas.eisenlohr@linde.com Robert Schneider Phone +44 20 7647 9614 robert.schneider@linde.com 27