Slide 1: Investor Teleconference Presentation First Quarter 2023
Linde plc Investor Teleconference Presentation First Quarter 2023 April 27, 2023 Making our world more productive
Slide 2: Forward-Looking Statement
Forward-Looking Statement This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, cou
Slide 3: Clean Energy Update
Clean Energy Update Stick to core industrial gas model ‒ Build on integrated asset base leveraging ~$3B H2 business Strategy ‒ Develop networks to meet local market strategies ‒ Leverage engineering and technology capabilities Major projects in execution Major project under development Project Count
Slide 4: First-Quarter Adjusted Results
First-Quarter Adjusted Results (1) ($MM) 1Q 2023 4Q 2022 Var 1Q 2022 Var YOY SEQ. Sales Growth -- + 4% Sales $8,193 $7,899 4% $8,211 0% Volume -- -- Operating Profit $2,206 $2,001 10% $1,905 16% Price / Mix + 8% + 3% % of Sales 26.9% 25.3% 23.2% Cost pass-thru - 1% - 1% Currency - 3% + 2% Income $1,
Slide 5: 1Q Capital Management
1Q Capital Management Operating Cash Flow (OCF) Trend ($B) Wind down of Engineering sanctioned contracts creating unfavorable OCF 2022 2023 timing Raised dividend 9% in 2023 • 30 consecutive years of dividend increase Net share purchases $0.8B • $4.5B of remaining program authority OCF $2.0 $2
Slide 6: 2023 Guidance
2023 Guidance Full-Year 2023 2nd Quarter 2023 Adjusted EPS in the range of $3.40 to $3.50 (1) Adjusted EPS in the range of $13.45 to $13.85 (1) • +9% to +13% vs. 2022 • +10% to +13% vs. 2022 • Assumes no currency impact • Estimated YoY currency headwind -1% • Increased guidance $0.30 based on 1Q
Slide 7: Appendix
Appendix 7
Slide 8: Americas
Americas ($MM) 1Q 2023 4Q 2022 Var 1Q 2022 Var YOY SEQ. Sales $3,551 $3,421 4% $3,241 10% Sales Growth + 10% + 4% Volume + 1% + 1% Operating Profit $1,025 $944 9% $904 13% Price / Mix + 7% + 2% % of Sales 28.9% 27.6% 27.9% Cost pass-thru - 1% - 2% Currency -- -- Acq / Div + 3% + 3% Sales by End Mark
Slide 9: APAC
APAC ($MM) 1Q 2023 4Q 2022 Var 1Q 2022 Var YOY SEQ. Sales Growth -- + 2% Sales $1,598 $1,567 2% $1,602 -- Volume + 1% - 4% Operating Profit $423 $416 2% $399 6% Price / Mix + 5% + 2% % of Sales 26.5% 26.5% 24.9% Cost pass-thru -- + 1% Currency - 6% + 3% Acq / Div -- -- Sales by End Market Ex. cost
Slide 10: EMEA
EMEA ($MM) 1Q 2023 4Q 2022 Var 1Q 2022 Var YOY SEQ. Sales $2,177 $2,026 7% $2,148 1% Sales Growth + 1% + 7% Volume - 3% -- Operating Profit $607 $509 19% $503 21% Price / Mix + 13% + 5% % of Sales 27.9% 25.1% 23.4% Cost pass-thru + 1% - 2% Currency - 6% + 4% Acq / Div - 4% -- Sales by End Market E
Slide 11: Engineering
Engineering ($MM) 1Q 2023 4Q 2022 Var 1Q 2022 Var Higher margins driven by: ‒ Favorable impact from project Sales $540 $562 -4% $728 -26% timing due to wind down of sanctioned contracts Operating Profit $149 $157 -5% $143 4% ‒ Better cost absorption % of Sales 27.6% 27.9% 19.6% Benefits from pro
Slide 12: Global Other
Global Other ($MM) 1Q 2023 4Q 2022 Var 1Q 2022 Var YoY sales decline due to divestiture of GIST in 3Q 2022 Sales $327 $323 1% $492 -34% ‒ GIST annual sales ~$0.8B, OP margins mid-single digits Operating Profit $2 ($25) 108% ($44) 105% % of Sales 0.6% -7.7% -8.9% Margin improvement led by pricing
Slide 13: Global End Market Trends
Global End Market Trends % of Sales(1) YoY Sales(2) Seq. Sales(2) 1Q 2023 End Market & YoY Trend Growth Growth Consumer Related End Markets (More Resilient) Healthcare 17% +2% +3% Food & Beverage 8% +14% +2% Electronics 9% +15% -1% Industrial Related End Markets (More Cyclical) Manufacturing 22% +15
Slide 14: High-Quality Project Backlog $7.7B
High-Quality Project Backlog $7.7B Geography SOP Backlog (1) SOG Backlog (2) $3.5B $4.2B End Market Contractual growth Contractual growth Secure cash flow Secure cash flow Double-digit IRR Double-digit IRR High-quality customers High-quality customers Clean Energy Primarily enginee
Slide 15: ESG Performance vs. 2028 Goals
ESG Performance vs. 2028 Goals Target: 35% Reduction in GHG Emissions Intensity 2018-2028 (1) Decarbonizing our Future Linde Signs Agreement with ExxonMobil for Carbon Dioxide Off-take in U.S. Gulf Coast Linde to Supply Green Hydrogen to Evonik in Singapore Linde and Heidelberg Materials Annou
Slide 16: Sustainable Development Highlights
Sustainable Development Highlights Best-in-class Enabled the safety performance 250,000 people avoidance of >2x more Lost Workday Case Rate more benefited from global GHG emissions than 4x better than U.S. employee community Occupational than were emitted in all the Health and Safety Administration
Slide 17: Strategy + Clean Energy
Strategy Network density Capex efficiency Optimize the Base Productivity/digitalization Portfolio optimization Price management Price and volume Leverage the Recovery Cost management >10% EPS Operations optimization Growth Electronics Backlog start-up Capitalize on Growth Healt
Slide 18: Non-GAAP Measures
Non-GAAP Measures LINDE PLC AND SUBSIDIARIES SUMMARY NON-GAAP RECONCILIATIONS (UNAUDITED) The following adjusted amounts are Non-GAAP measures and are intended to supplement investors' understanding of the company's financial statements by providing measures which investors, financial analysts and m
Slide 19: Non-GAAP Measures, continued
Non-GAAP Measures, continued LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (UNAUDITED) The following Non-GAAP measures are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and
Slide 20: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) Adjusted Other Income (Expense) - net Reported Other Income (Expense) - net $ (5) $ (4) $ (34) $ (36) $ 12 Add: Purchase accounting impacts - Linde AG (c) (5) (4) (5) (5) (11) Adjusted Other Income (Ex
Slide 21: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) Adjusted Effective Tax Rate (a) Reported income before income taxes and equity investments $ 1,941 $ 1,714 $ 1,648 $ 646 $ 1,535 Add: Pension settlement charge — — 6 — — Add: Purchase accounting impact
Slide 22: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) Adjusted Net Income - Linde plc (b) Reported net income $ 1,516 $ 1,328 $ 1,273 $ 372 $ 1,174 Add: Pension settlement charge — — 5 — — Add: Other charges (a) (27) 16 (11) 889 (1) Add: Purchase accounti
Slide 23: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) Adjusted EBITDA and % of Sales Net Income - Linde plc $ 1,516 $ 1,328 $ 1,273 $ 372 $ 1,174 Add: Noncontrolling interests 36 33 27 38 36 Add: Net pension and OPEB cost (benefit), excluding service cost
Slide 24: Non-GAAP Measures, continued
Non-GAAP Measures, continued (a) The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.
Slide 25: Non-GAAP Measures, continued
Non-GAAP Measures, continued LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (Millions of dollars) (UNAUDITED) 2023 2022 Q1 Q4 Q3 Q2 Q1 Available Operating Cash Flow (AOCF) and Base Capex - Available operating cash flow is a measure used by investors, financial analysts and
Slide 26: Non-GAAP Measures, continued
Non-GAAP Measures, continued LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (Millions of dollars) (UNAUDITED) 2023 2022 (Millions of dollars) Q1 Q4 Q3 Q2 Q1 Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evaluate
Slide 27: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 (Millions of dollars) Q1 Q4 Q3 Q2 Q1 Reported net income - Linde plc $ 1,516 $ 1,328 $ 1,273 $ 372 $ 1,174 Add: noncontrolling interests 36 33 27 38 36 Add: interest expense - net 37 31 18 5 9 Less: tax benefit on interest expense - net * (9) (7) (5) (1) (2) Re
Slide 28: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 (Millions of dollars) Q1 Q4 Q3 Q2 Q1 Reported capital $ 55,151 $ 53,865 $ 50,521 $ 53,428 $ 56,382 Total equity and redeemable noncontrolling interests $ 41,336 $ 41,387 $ 38,939 $ 41,040 $ 44,390 Add: Adjusted net debt 13,802 12,456 11,554 12,350 11,942 Less:
Slide 29: Investor Relations
Investor Relations For further information, please contact: Phone: +1-203-837-2210 Email: investor.relations@linde.com Internet: www.linde.com/en/investors 29