Slide 1: Linde plc Investor Teleconference Presentation Third Quarter 2023
Linde plc Investor Teleconference Presentation Third Quarter 2023 October 26, 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: Global End Market Trends
Global End Market Trends % of Sales(1) YoY Sales(2) Seq. Sales(2) 3Q 2023 End Market & YoY Trend Growth Growth Consumer Related End Markets (More Resilient) Healthcare 17% +3% -1% Food & Beverage 9% +7% +4% Electronics 8% -5% -2% Industrial Related End Markets (More Cyclical) Manufacturing 22% +6% -
Slide 4: Third Quarter Adjusted Results
Third Quarter Adjusted Results (1) ($MM) 3Q 2023 2Q 2023 Var 3Q 2022 Var YOY SEQ. Sales Growth - 7% - 1% Sales $8,155 $8,204 -1% $8,797 -7% Volume - 2% -- Operating Profit $2,306 $2,286 1% $2,010 15% Price / Mix + 5% + 1% % of Sales 28.3% 27.9% 22.8% Cost pass-thru - 6% -- Currency + 1% - 1% Income
Slide 5: 3Q Capital Management
3Q Capital Management Operating Cash Flow (OCF) Trend ($B) Disciplined cash management Strong cash generation despite 2022 2023 macro YTD business investments +46% Robust balance sheet YTD Capital Allocation Business Return to Investments Shareholders $3.5B $4.8B Base capex(1) $1.8B Net share
Slide 6: 2023 Guidance
2023 Guidance Full-Year 2023 4th Quarter 2023 Adjusted EPS in the range of $3.38 to $3.48 (1) Adjusted EPS in the range of $14.00 to $14.10 (1) • +14% to +15% vs. 2022 • +7% to +10% vs. 2022 • Assumes no currency impact • Estimated FX impact: YoY +1%; Seq. -2% • Upper end assumes no economic imp
Slide 7: Appendix
Appendix 7
Slide 8: Americas
Americas ($MM) 3Q 2023 2Q 2023 Var 3Q 2022 Var YOY SEQ. Sales Growth - 2% + 2% Sales $3,629 $3,541 2% $3,694 -2% Volume - 2% + 1% Operating Profit $1,074 $1,070 0% $974 10% Price / Mix + 5% -- % of Sales 29.6% 30.2% 26.4% Cost pass-thru - 8% + 1% Currency -- -- Acq / Div + 3% -- Sales by End Market
Slide 9: APAC
APAC ($MM) 3Q 2023 2Q 2023 Var 3Q 2022 Var YOY SEQ. Sales Growth - 1% - 3% Sales $1,639 $1,683 -3% $1,660 -1% Volume -- -- Operating Profit $459 $472 -3% $429 7% Price / Mix + 3% -- Cost pass-thru - 1% - 1% % of Sales 28.0% 28.0% 25.8% Currency - 3% - 2% Acq / Div -- -- Sales by End Market Ex. cos
Slide 10: EMEA
EMEA ($MM) 3Q 2023 2Q 2023 Var 3Q 2022 Var YOY SEQ. Sales Growth - 1% - 3% Sales $2,105 $2,160 -3% $2,125 -1% Volume - 4% - 1% Operating Profit $634 $630 1% $465 36% Price / Mix + 6% + 1% % of Sales 30.1% 29.2% 21.9% Cost pass-thru - 9% - 2% Currency + 6% - 1% Acq / Div -- -- Sales by End Market E
Slide 11: Engineering
Engineering ($MM) 3Q 2023 2Q 2023 Var 3Q 2022 Var YoY higher margins driven by: Sales $467 $495 -6% $828 -44% ‒ Favorable impact from wind down of sanctioned contracts Operating Profit $116 $107 8% $150 -23% ‒ Better cost absorption % of Sales 24.8% 21.6% 18.1% Benefits from productivity and cos
Slide 12: Global Other
Global Other ($MM) 3Q 2023 2Q 2023 Var 3Q 2022 Var YoY sales decline due to divestiture of GIST in September Sales $315 $325 -3% $490 -36% 2022 Operating Profit $23 $7 229% ($8) 388% ‒ GIST annual sales ~$0.8B, OP margins mid-single digits % of Sales 7.3% 2.2% -1.6% Profit growth led by Coatings
Slide 13: High-Quality Project Backlog $8.1B
High-Quality Project Backlog $8.1B Geography SOP Backlog (1) SOG Backlog (2) $3.6B $4.5B 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 14: ESG Performance vs. 2028 Goals
ESG Performance vs. 2028 Goals Target: 35% Reduction in GHG Emissions Intensity 2018-2028 (1) Decarbonizing our Future Linde publishes 2022 Sustainable Development Report GHG Emissions Intensity(1) (Target: reduce 35% by 2028) ‒ Sequential improvement led by scope 1 and 2 reductions with stable vo
Slide 15: Sustainable Development Highlights
Sustainable Development Highlights Best-in-class Enabled the safety performance 350,000 people avoidance of >2x more benefited from global Lost Workday Case Rate more GHG emissions than 4x better than U.S. employee community than were emitted in all the Occupational Health and Safety engagement proj
Slide 16: Strategy: Sustainable value creation
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 17: 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 18: 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 19: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 Year to Date Year to Date Q3 Q2 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) September 30, September 30, Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost Reported net pension and OPEB cost (benefit), excluding service cost $ (
Slide 20: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 Year to Date Year to Date Q3 Q2 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) September 30, September 30, Reported Income taxes $ 1,355 $ 487 $ 438 $ 430 $ 1,046 $ 388 $ 391 $ 286 $ 369 Reported effective tax rate 22.6 % 23.8 % 21.9 % 22.2 % 27.3
Slide 21: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 Year to Date Year to Date Q3 Q2 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) September 30, September 30, Adjusted Diluted EPS (b) Reported diluted EPS $ 9.43 $ 3.19 $ 3.19 $ 3.06 $ 5.57 $ 2.67 $ 2.54 $ 0.74 $ 2.30 Add: Pension settlement charge 0
Slide 22: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 Year to Date Year to Date Q3 Q2 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) September 30, September 30, Adjusted EBITDA and % of Sales Net Income - Linde plc $ 4,656 $ 1,565 $ 1,575 $ 1,516 $ 2,819 $ 1,328 $ 1,273 $ 372 $ 1,174 Add: Noncontrolli
Slide 23: 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 24: Non-GAAP Measures, continued
Non-GAAP Measures, continued LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (Millions of dollars) (UNAUDITED) (Millions of dollars) 2023 2022 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Available Operating Cash Flow (AOCF) and Base Capex - Available operating cash flow is a measure used by inves
Slide 25: Non-GAAP Measures, continued
Non-GAAP Measures, continued LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (Millions of dollars) (UNAUDITED) (Millions of dollars) 2023 2022 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to eva
Slide 26: Non-GAAP Measures, continued
Non-GAAP Measures, continued (Millions of dollars) 2023 2022 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Reported net income - Linde plc $ 1,565 $ 1,575 $ 1,516 $ 1,328 $ 1,273 $ 372 $ 1,174 Add: noncontrolling interests 36 37 $ 36 33 27 38 36 Add: interest expense - net 40 52 $ 37 31 18 5 9 Less: tax benefit on interest
Slide 27: Non-GAAP Measures, continued
Non-GAAP Measures, continued (Millions of dollars) 2023 2022 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Reported capital $ 54,347 $ 55,381 $ 55,151 $ 53,865 $ 50,521 $ 53,428 $ 56,382 Total equity and redeemable noncontrolling interests $ 40,238 $ 41,248 $ 41,336 $ 41,387 $ 38,939 $ 41,040 $ 44,390 Add: Adjusted net debt
Slide 28: 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 28