Slide 1: January – June 2007 Conference Call
January – June 2007 Conference Call Georg Denoke, CFO July 30, 2007
Slide 2: Disclaimer
Disclaimer This investor presentation has been prepared independently by Linde AG (“Linde”). The presentation contains statements which address such key issues as Linde’s growth strategy, future financial results, market positions, and product development. Such statements should be carefully conside
Slide 3: Highlights
Highlights Operating performance on solid growth trend — Group sales rise 12.7% to € 5,888 bn in the first half year, Q2 sales up 16.1% to € 3,028 bn — H1 operating profit up by 14.7% to € 1,158 bn, 19.5% increase in Q2 to € 589 mn — Half-year reported EPS increases to € 3.66 (2006: € 2.25), on adju
Slide 4: Group: Segment overview
Group: Segment overview Sales and operating profit by segment Sales 2007, in € million Q2 ∆ yoy H1 ∆ yoy Division Gases 2,304 9.9% 4,553 8.1% Division Engineering 636 43.6% 1,134 43.2% Division Corporate / Cons. 88 -17.8% 201 -8.2% Group 3,028 16.1% 5,888 12.7% Operating profit 2007, in € million* Q
Slide 5: Gases Division Key Figures
Gases Division Key Figures — Sales increase of 7.9% on comparable basis for the first half year — Operating profit over the first six months 2007 improves by 10.6% to € 1,125 bn — Embedded Financial Lease impact on operating profit of € -69 mn in H1 — Operating margin for the half year up by 60bp to
Slide 6: Solid growth momentum in all regions
Solid growth momentum in all regions Europe — Steady growth in Continental & Northern Europe Sales: € 2,310 mn — Strong growth all over Eastern Europe / Middle East (+8.1%/+6.5% comp.) — Recently approved acquisition in Turkey and Algeria strengthen our market position in attractive growth regions A
Slide 7: Gases Division Product Segment Sales
Gases Division Product Segment Sales — Strongest growth momentum in tonnage driven by production ramp-ups — Ongoing strong development on a broad base in the cylinder, bulk and healthcare segments In € million* H1 07 H1 06 ∆ yoy Bulk 1,357 1,271 6.8% Cylinder 1,837 1,700 8.1% Tonnage 1,025 938 9.3%
Slide 8: Gases Division Impact of disposals and acquisitions
Gases Division Impact of disposals and acquisitions (in € million) Sales 280 Operating Profit 850 4,553 750 230 1,125 650 4,212 +8.1% 207 +10.6% 180 56 550 1,017 450 206 132 34 130 50 350 250 80 4.006 +7.9%* 4.214 967 +9.2%* 1.035 150 30 50 -50 -20 H1 2006 H1 2007 H1 2006 H1 2007 Cont. operations Di
Slide 9: Gases Division Proportionate contribution of JVs
Gases Division Proportionate contribution of JVs Sales Net Income 16.7% 455 390 115 +8.5% 106 24.1% 36 29 10 340 +0% 284 +19.7% 10 26 19 +36.8% H1 2006 H1 2007 H1 2006 H1 2007 JV´s sold In € million JV‘s 9
Slide 10: Engineering Division Key Figures
Engineering Division Key Figures — Order intake for the first half up 22.0% on last year´s high level — Half-year sales rise by 43.2% to € 1,134 bn — Increase in operating profit of 44.1% to € 98 mn — Order backlog of € 4,700 bn as of end of June In € million Q2 07 ∆ yoy H1 07 ∆ yoy Order intake 531
Slide 11: Net debt of € 6,977 billion
Net debt of € 6,977 billion Year-end net debt target remains € 7,2-7,5 billion In € million 9.933 128 3.542 57 6.977 258 240 745 762 31.12.2006 Consolidation Disposals Operating Net Interest Dividends Others 30.06.2007 Cashflow investments 11
Slide 12: Group – Cash Flow Statement Key elements
Group – Cash Flow Statement Key elements (in € million) Q1/2007 Q2/2007 H1 2007 H1 2006 Operating profit before unusual items 569 589 1,158 863 Change in Working Capital -79 70 -9 12 Funds from operations 490 659 1,149 875 P&L Taxes as reported -201 -94 -295 -150 Accrued taxes on disposals 160 160 P
Slide 13: Synergy ramp-up / run-rate
Synergy ramp-up / run-rate End of 2008: € 250 m € million 30% 2007 100 15% Supply 20% Procurement 25% 65% G&A 45% 0 End 2006 Q1 Q2 Q3 Q4 — Synergy impact in Q1/Q2 partly offset by one-time expenses — G&A initiatives largely contribute to the impact in 2007, mainly driven by FTE reduction; Wiesbaden
Slide 14: Outlook confirmed
Outlook confirmed Gases Division — Sales increase above market growth — Overproportionate increase of operating profit — Further significant increase of sales and operating profit based Engineering Division on high order backlog and positive market environment — 2007: Sales expected to reach at leas
Slide 15: Appendix
Appendix rt LY THE LINDE GROUP
Slide 16: Income Statement
Income Statement — Sales rise by 12.7% to € 5,888 bn — Overproportional increase in operating profit to € 1,158 bn (+14.7%) — PPA impact of € 201 mn, book gain on disposals of € 574 mn In € million Q2 07 ∆ yoy H1 07 ∆ yoy Sales 3,028 16.1% 5,888 12.7% Operating profit* 589 19.5% 1158 14.7% EBIT befo
Slide 17: Gases Division Sales bridge H1/07: underlying growth of 7.9%
Gases Division Sales bridge H1/07: underlying growth of 7.9% In € million 7.9% 3.1% 4,553 4,212 -2.8% -0.1% H1 06 Currency Natural gas Price/Volume Consolidation H1 07 17
Slide 18: Disposals – strategic transformation accomplished
Disposals – strategic transformation accomplished Proceeds Closing (Enterprise Value, €m) Q1/07 Stake in Indura 150 31/01/07 9 Linde Australia 300 01/02/07 9 Stake in JAG 695 01/03/07 9 8 Linde US ASUs 386 09/03/07 9 INO Therapeutics 380 * 27/03/07 9 Q2/07 Asian Jvs with AL 275 27/04/07 9 BOC Poland
Slide 19: Thank you for your attention
Thank you for your attention rt LY THE LINDE GROUP