Slide 1: January - March 2005 Conference Call
Linde Group January - March 2005 Conference Call May 4, 2005 Dr Peter Diesch, CFO
Slide 2: Contents
Linde Group Contents 04 | Linde Group 09 | Linde Gas & Engineering 11 | Linde Gas 19 | Linde Engineering 22 | Material Handling 2
Slide 3: Disclaimer
Linde Group 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 caref
Slide 4: Business trends based on adjusted prior year figures
Linde Group The business trends described below are based on adjusted prior year figures which exclude Refrigeration and the amortization of goodwill 4
Slide 5: Comparatives excluding Refrigeration and the amortization of goodwill
Linde Group Comparatives excluding Refrigeration and the amortization of goodwill In € million January – March 2004 Group income Refrigeration Amortization of Group income statement goodwill (other statement, business comparable segments) figures EBITA 117 29 146 Amortization of goodwill -30 1 29 0
Slide 6: Key Facts
Linde Group Key Facts — Significant increase in sales and EBITA — EPS of €0.71 (2004: €0.65) — Outlook for FY 2005 unchanged: Growth in sales and EBITA — Programs „GAP“ and „GO“ ensure sustainable & profitable growth in Linde Gas and Material Handling 6
Slide 7: Income Statement
Linde Group Income Statement — Sales up 6.9% to €2,124 million, EBITA up 13.0% to €165 million — Financial result improved In € million Q1 04 Q1 05 ∆ Sales 1,986 2,124 6.9% EBITDA 332 357 7.5% EBITA 146 165 13.0% Financial result -38 -30 21.0% EBT 108 135 25.0% Net income 78 85 9.0% 7
Slide 8: Key Financials (Q1 2004 not adjusted)
Linde Group Key Financials (Q1 2004 not adjusted) In € million Q1 04 Q1 05 Operating cash flow 201 140 Capex (excl. financial assets) 160 198 Net interest -38 -30 EBITDA / Net interest 8.7 11.9 Net debt* 2,380 2,005 Gearing ** 60.3 47.5 * Financial debt – cash & cash equivalents and securities ** Ne
Slide 9: Gas & Engineering
Linde Group Gas & Engineering
Slide 10: Linde Gas & Engineering
Linde Group Linde Gas & Engineering — Sales up 9.0% to €1,339 million — EBITA increase of 11.8% to €170 million In € million Q1 04 Q1 05 ∆ Sales 1,228 1,339 9.0% EBITDA 258 276 7.0% Margin 21.0% 20.6% EBITA 152 170 11.8% Margin 12.4% 12.7% EBTA 134 149 11.2% EBT 108 149 38.0% 10
Slide 11: Linde Gas
Linde Group Linde Gas — Sales up 7.8% to €1,038 million — EBITA increases 10.1% to €164 million In € million Q1 04 Q1 05 ∆ Sales 963 1,038 7.8% EBITDA 250 268 7.2% Margin 26.0% 25.8% EBITA 149 164 10.1% Margin 15.5% 15.8% EBTA 127 143 12.6% EBT 103 143 38.8% 11
Slide 12: Linde Gas - Sales bridge Q1 2004 / Q1 2005
Linde Group Linde Gas - Sales bridge Q1 2004 / +2.0% €1,038m +5.2% +0.2% +0.4% €963m +7.8% Sales 2004 Volume / Price FX Gas price effect New Sales 2005 Consolidation 12
Slide 13: Linde Gas – Regional Sales (Q1 2005)
Linde Group Linde Gas – Regional Sales (Q1 2005) — Stable growth continues in Europe, driven by Eastern Europe — North America sales still affected by currency situation In € million Q1 04 Q1 05 ∆ ∆ excl. currency Germany 217 223 2.8% 2.8% Europe excl. Germany 469 506 7.9% 5.4% North America 195 203
Slide 14: Linde Gas – Product Segment Sales
Linde Group Linde Gas – Product Segment Sales — Highest growth rates in On-site business — Double-digit growth rates continue in Healthcare — Cylinder business stable In € million Q1 04 Q1 05 ∆* ∆* excl. currency Bulk 263 279 6.3% 5.7% Cylinder 386 391 1.2% 0.5% On-site** 195 231 18.1% 18.6% Healthc
Slide 15: Linde Gas – On-site projects
Linde Group Linde Gas – On-site projects (start-ups 05/06, €350m Capex) Salzgitter AG Avesta Polarit - Germany - Finland Merchant Market Sokolovska uhelna - Russia - Czech Republic Bayer Bayer - Germany - PR China BorsodChem - Hungary Cognis - France Jianlong Plansee - Austria - PR China ENAP Air Se
Slide 16: Linde Gas - Healthcare Sales
Linde Group Linde Gas - Healthcare Sales (+7.2% excl. new consolidations in Homecare) €170 m €153 m 57% Sales € million +5.4% 97 60% 92 * INO excl. currency +18.7% +26.5% 25% 22% 43 34 Institutional Homecare +11.1%* 18% 30 18% INO 27 Q1 2004 Q1 2005 16
Slide 17: Linde Gas – Efficiency improvement & Growth initiatives
Linde Group Linde Gas – Efficiency improvement & Growth initiatives — „Fit-For-Future“ program will be completed this year and lead to total improvements of €150 million — Start of the „GAP“ program (Growth and Performance) in 2005 — 2/3 of initiatives focused on profitable growth — 1/3 of initiativ
Slide 18: Linde Gas Outlook for FY 2005 unchanged
Linde Group Linde Gas Outlook for FY 2005 unchanged: — Increase in sales and EBITA 18
Slide 19: Linde Engineering
Linde Group Linde Engineering — Strong increase in sales to €357m, up 23.1% — EBITA improved to €16m (2004: €5m) In € million Q1 04 Q1 05 ∆ Sales 290 357 23.1% EBITDA 9 20 - Margin 3.1% 5.6% EBITA 5 16 - Margin 1.7% 4.5% EBTA 7 17 - EBT 6 17 - 19
Slide 20: Linde Engineering – Orders received up 12.3% to €465m
Linde Group Linde Engineering – Orders received up 12.3% to €465m Orders received Q1 2005: Others Olefins Main orders: 14% 19% Client Location Plant Type Natural Gas Praxair Texas, USA HyCo 13% BOC Maanshan, China ASU BOC Jindal, India ASU Shenhua Coal Shenhua, China ASU Syngas Air Separation 18% Ba
Slide 21: Linde Engineering Outlook for FY 2005 unchanged
Linde Group Linde Engineering Promising outlook for all segments: — Air Separation: Middle east, China — Olefins: Middle east — Syngas: USA, China, Russia — Natural Gas: Middle east Outlook for FY 2005 unchanged: — Sales and EBITA at least on last year‘s high level 21
Slide 22: Material Handling
Linde Group Material Handling
Slide 23: Material Handling
Linde Group Material Handling — Sales increase 3.6% to €771 million — EBITA up 8.7% to €25 million In € million Q1 04 Q1 05 ∆ Sales 744 771 3.6% EBITDA 99 105 6.1% Margin 13.3% 13.6% EBITA 23 25 8.7% Margin 3.1% 3.2% EBTA 15 17 13.3% EBT 14 17 21.4% 23
Slide 24: Material Handling – Q1 2005 market growth (order intake) vs Q1 2004
Linde Group Material Handling – Q1 2005 market growth (order intake) vs Q1 2004 80% Counterbalance Trucks Warehouse Trucks 73% 70% 60% 50% 44% 40% 34% 30% 21% 16% 18%20% 15% 20% 12% 8% 10% 10% 7% 3% 4% 0% Europe Eastern N. America S. America Asia Others World Europe Total 6% 23% 18% 36% 6% 32% 11% 2
Slide 25: Material Handling: Efficiency improvement & Growth initiatives
Linde Group Material Handling: Efficiency improvement & Growth initiatives — „TRIM“ program will be completed this year and lead to improvements of €150m — Start of the „GO“ program (Growth and Operational excellence) in 2005 — Focus on sustainable efficiency improvement in core processes — R & D, p
Slide 26: Material Handling Outlook for FY 2005 unchanged
Linde Group Material Handling Expected slower market growth — Growth drivers remain USA and Asia — Slower growth in Western Europe in 2005 — Above average increase in Eastern Europe Outlook for FY 2005 unchanged: — Increase in sales and significant improvement of EBITA 26
Slide 27: Investor Relations Contacts
Linde Group Investor Relations Contacts Thomas Eisenlohr, Head of Investor Relations Tel: +49 611 770 610 E-mail: thomas.eisenlohr@linde.de Robert Schneider Tel: +49 611 770 270 E-mail: robert.schneider@linde.de Jo Raja Tel: +49 611 770 128 E-mail: jo.raja@linde.de 27