Slide 1: Linde plc Investor Update
Linde plc Investor Update March 1st 2019 Making our world more productive
Slide 2: Forward Looking Statement
Forward Looking Statement Linde plc has not yet completed the preparation of its financial statements for the fiscal year ended December 31, 2018. As a result, the historical and pro forma financial information in this document for the fiscal year ended December 31, 2018 is preliminary, remains subj
Slide 3: Steve Angel, CEO
Steve Angel CEO Making our world more productive
Slide 4: Linde plc - New Industry Leader
Linde plc - New Industry Leader Key Metrics Industrial Gas Competitors ($B) Sales ~$28B (1) ~$28 Op. Profit ~$5B (1) ~$24 Market Cap ~$90B ~$9 Employees ~80K (2) ~$8 Customers ~+2M (1) Non-GAAP. See Adjusted Pro Forma Financials slide 4 (2) Taiyo Nippon Sanso includes sales from recent acquisitions
Slide 5: A Well Diversified & Resilient Portfolio
A Well Diversified & Resilient Portfolio Group Gases Sales ~$28B Sales ~$24B (1) (1) APAC 21% Americas 38% Other 6% Engineering 10% EMEA 25% (1) Non-GAAP. See Adjusted Pro forma Financials slide. Gases sales excludes Engineering and Other 5
Slide 6: Building a High Performance Culture
Building a High Performance Culture Where are we going? How we do it? Vision Mission Operating rhythm Merger value capture How will we get there? roadmap Strategic Direction Aligned leadership What do we stand for? Pay for performance Values 6
Slide 7: Vision, Mission & Values
Vision, Mission & Values Vision To be the best performing global industrial gases and engineering company, where our people deliver innovative and sustainable solutions for our customers in a connected world Mission Making our world more productive Values Safety Inclusion Accountability Integr
Slide 8: Strategic Direction
Strategic Direction Leverage individual strengths of both companies across a larger global footprint − World class engineering & technology capabilities to strengthen sale of gas (SOG) offerings − Best practice sharing Build network density in core industrial gas geographies Capture full value
Slide 9: $1.1B+ Value Capture 2019 Onwards
$1.1B+ Value Capture 2019 Onwards Cost Synergies ~$0.9B Capex Synergies ~$0.2B Additional Synergies ++ – Decentralized structure – In-source engineering – Cross sell offerings – Corporate rightsizing – Efficient asset utilization – Applications/technology – Regional overlap – Procurement – Capital s
Slide 10: Leadership Team
Leadership Team Steve Angel CEO Management Committee Matt Bernd Sanjiv Eduardo Christian Anne White Eulitz Lamba Menezes Bruch Roby Global CFO Americas APAC EMEA Engineering Functions 10
Slide 11: Management Compensation
Management Compensation Guiding Principles Key Elements Integral to high performance Base Pay culture − Market-based Motivates to deliver strong results Short-term Cash Bonus − Pay tied to performance − Sales, net income and OCF growth − Appropriate pay “at risk” − 75% weight on income & cas
Slide 12: Key Milestones
Key Milestones Merger closed October Announced initial SBB program & dividend December Announced second SBB program January Global Leadership Conference January Announced dividend increase February Hold separate order (HSO) obligations lifted March Linde AG squeeze out completed Q2 201
Slide 13: Matt White, CFO
Matt White CFO Making our world more productive
Slide 14: Adjusted Pro Forma Financials
Adjusted Pro Forma Financials (1) Adjusted for comparability ($B) 2018 2017 Var – Merger, PPA & other effects removed Sales $28.1 $26.9 5% – Estimated divestitures removed Gross Profit $11.2 $10.5 6% Sales growth consistent with % of Sales 39.6% 39.2% trends Operating Profit $4.8 $4.5 7% % of Sa
Slide 15: Capital Allocation Priority
Capital Allocation Priority Access to low cost capital Maintain A/A2 Credit 1 Rating & Dividend “Dry powder” for future needs Consistently grow dividend Highest return on capital 2 Invest in the Business Capex & acquisitions in core business Maintain discipline 3 Share Buybacks Return
Slide 16: Distributing Surplus Cash To Shareholders
Distributing Surplus Cash To Shareholders Approved Share Buyback Programs – $1 billion December Program (completed) – $3 billion Squeeze Out (expected Jun 2019) – $6 billion New Program (expires Feb 2021) Dividends over next 2 years – ~$4 billion in 2019 & 2020 Anticipate ~$14B distribution over
Slide 17: 2019 Outlook
2019 Outlook Anticipate slower top-line growth than 2018 – Lower global industrial production – (2)% or more FX translation headwind – Partially offset by positive pricing and project backlog contribution Anticipate adjusted EPS growth 8% - 12% – Includes (2)% FX headwind – Positive contribution
Slide 18: Appendix
Appendix 18
Slide 19: High Quality Backlog
High Quality Backlog Sale of Gas (SOG) Backlog (~$3.5B) (1) Aerospace Manufacturing 2% Energy 10% 23% Metals Americas 8% APAC 42% 49% Chemicals Electronics 24% 33% EMEA 9% Versus Q3 2018 − Won new hydrogen project in the U.S. Gulf Coast − Started up project in Geismar, Louisiana (1) SOG backlog figu
Slide 20: Non-GAAP Measures
Non-GAAP Measures The Pro Forma information contained herein was not prepared in accordance with Article 11 of Regulation S‐X. Pro forma adjustments were made to the 2017 and 2018 Linde plc results to give effect to the merger as of January 1, 2017 as well as to eliminate the effect of items that we
Slide 21: Non-GAAP Measures, continued
Non-GAAP Measures, continued Year Year (in millions, except per share information) 2018 2017 Adjusted Pro Forma Operating Profit and Operating Profit Margin Linde plc - GAAP (a) $ 5,255 $ 2,444 Linde AG (b) 2,343 2,305 Estimated Divestitures (819) (654) Eliminate costs directly associated with the m
Slide 22: Non-GAAP Measures, continued
Non-GAAP Measures, continued Year Year 2018 2017 Adjusted Pro Forma Income from Continuing Operations & Diluted Earnings per share Linde plc - GAAP (a) $ 4,289 $ 1,247 Linde AG (b) 1,459 1,958 Estimated Divestitures (656) (496) Eliminate costs directly associated with the merger: Transaction Costs 5
Slide 23: Sustainable Development Highlights
Sustainable Development Highlights Safety Performance Linde applications enabled RECOGNITION 7 X better Lost Workday Case Rate than U.S. 2X MORE GHG EMISSIONS Occupational Health TO BE SAFETY FIRST and Safety AVOIDED Administration than were emitted in industrial average all its operations Installed
Slide 24: Investor Relations
Investor Relations For further information, please contact: Phone: +1-203-837-2210 Email: investor_relations@linde.com Internet: www.lindeplc.com/en/investors 24