Slide 1: January - September 2005 Conference Call
Linde Group January - September 2005 Conference Call October 31, 2005 Dr Peter Diesch, CFO
Slide 2: Contents
Linde Group Contents 04 | Linde Group 09 | Linde Gas & Engineering 11 | Linde Gas 18 | Linde Engineering 21 | 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: Basis of business trends: 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 – September 2004 Group income Refrigeration Amortization of Group income statement (Loss) goodwill (other statement, business comparable segments) figures EBITA 498 4 502 Amortization of goodwill -
Slide 6: Key Facts
Linde Group Key Facts — Sales up 7.8% to €6,833 million — Operating profit (EBITA) grows by 17.5% to €590 million — EPS up 22.1% to €2.60 (2004: €2.13) — Outlook 2005: Sales increase, Operating profit to rise at least 10% 6
Slide 7: Income Statement
Linde Group Income Statement — Sales increase 7.8% to €6,833 million — EBITA up 17.5% to €590 million In € million Q3 05 ∆ 9M 05 ∆ Sales 2,369 6.9% 6,833 7.8% EBITDA 411 9.6% 1,172 11.3% EBITA 218 13.0% 590 17.5% Financial result -30 - -94 - EBT 188 21.3% 496 25.3% Net income 118 31.1% 311 22.4% 7
Slide 8: Key Financials (9M 2004 not adjusted)
Linde Group Key Financials (9M 2004 not adjusted) In € million 9M 04 9M 05 Operating cash flow 737 833 Capex (excl. financial assets) 713 798 Net interest -97 -94 EBITDA / Net interest 10.9 12.5 Net debt* 2,363 1,926 Gearing ** 58.9% 43.6% * Financial debt – cash & cash equivalents and securities **
Slide 9: Gas & Engineering
Linde Group Gas & Engineering
Slide 10: Linde Gas & Engineering
Linde Group Linde Gas & Engineering — Sales up 9.4% to €4,240 million — EBITA increases 12.9% to €552 million In € million Q3 05 ∆ 9M 05 ∆ Sales 1,477 7.3% 4,240 9.4% EBITDA 304 8.2% 873 9.3% Margin 20.6% - 20.6% - EBITA 196 9.5% 552 12.9% Margin 13.3% - 13.0% - EBT 178 33.8% 489 40.9% 10
Slide 11: Linde Gas
Linde Group Linde Gas — Sales grow 10.8% to €3,278 million — EBITA rises 11.9% to €519 million In € million Q3 05 ∆ 9M 05 ∆ Sales 1,127 11.1% 3,278 10.8% EBITDA 286 7.5% 835 8.7% Margin 25.4% - 25.5% - EBITA 180 8.4% 519 11.9% Margin 16.0% - 15.8% - EBT 162 35.0% 453 42.0% 11
Slide 12: Linde Gas - Sales bridge 9M
Linde Group Linde Gas - Sales bridge 9M +2.4% €3,278m +0.9% +1.0% +6.5% €2,958m +10.8% Sales 2004 Volume / Price FX Gas price effect New Sales 2005 Consolidation 12
Slide 13: Linde Gas – Regional Sales
Linde Group Linde Gas – Regional Sales — Eastern Europe continues to drive European sales growth of 8.1% — Double-digit growth in North America, despite currency effect — Asia Pacific sales still growing strongly on base effect In € million 9M 04 9M 05 ∆ ∆ excl. currency Germany 654 691 5.5% 5.5% Eu
Slide 14: Linde Gas – Product Segment Sales
Linde Group Linde Gas – Product Segment Sales — On-site business growing 13.6% excluding currency and consolidation — Healthcare sales maintain double-digit growth rate — Cylinder and bulk continue to show sustainable growth rates In € million 9M 04 9M 05 ∆ ∆ excl. currency Bulk 836 910 +8.8% +7.4%
Slide 15: Linde Gas - Healthcare Sales increased by 12.4%
Linde Group Linde Gas - Healthcare Sales increased by 12.4% (+8.2% excl. currency and new consolidations) In € million 9M 05 9M ∆ 9M ∆ excl. currency + consolidation Institutional 310 +8.1% +6.8% Homecare 132 +24.9% +8.1% INO 83 +10.8% +13.7% Healthcare 526 +12.4% +8.2% 15
Slide 16: Linde Gas – Major on-site start-ups 05/06
Linde Group Linde Gas – Major on-site start-ups 05/06 (€400m dedicated Capex**) Avesta Polarit * Salzgitter AG - Finland - Germany Maksi Group Sokolovska uhelna * - Russia - Czech Republic Merchant Market - Russia Bayer BorsodChem * Bayer - Germany - Hungary - PR China Oltchim * - Romania Cognis * -
Slide 17: Linde Gas – delivering on strategy, growth drivers on track
Linde Group Linde Gas – delivering on strategy, growth drivers on track — 3 new on-site start-ups launched production during Q3 — Two new plants in Eastern Europe strengthen our leading market position — French plant to support growth in more mature Western European market — Growth path developing f
Slide 18: Linde Engineering
Linde Group Linde Engineering — Sales increase 9.8% on last year´s strong figure — EBITA up 53% to €55 million (2004: €36 million) In € million Q3 05 ∆ 9M 05 ∆ Sales 411 0.7% 1,136 9.8% EBITDA 25 25.0% 66 43.5% Margin 6.1% - 5.8% - EBITA 22 22.2% 55 52.8% Margin 5.4% - 4.8% - EBT 24 26.3% 60 50.0% 1
Slide 19: Linde Engineering – Order intake up 63% to €2bn
Linde Group Linde Engineering – Order intake up 63% to €2bn Orders received 9M/2005: Main orders in Q3: Others 10% Client Location Plant Type Order size PetroChina Dushanzi, Ethylene $140 mn China Air Separation BASF Antwerp, Steam Cracker, € 180 mn 24% Olefins 47% Belgium extension Sharq Al Jubail,
Slide 20: Linde Engineering - Outlook
Linde Group Linde Engineering - Outlook Mid-term growth of 6-8% for all segments, major demand drivers unchanged: — Air Separation: Middle East, China — Olefins: Middle East — Syngas: USA, China, Russia — Natural Gas: Middle East, Norway EBITA outlook increased for FY 2005: — Given the strong busine
Slide 21: Material Handling
Linde Group Material Handling
Slide 22: Material Handling
Linde Group Material Handling — 9 month sales growth increases to 5.5% yoy after +4.8% in H1 — EBITA margin up 0.4% to 4.9% for 9M (2004: 4.5%) In € million Q3 05 ∆ 9M 05 ∆ Sales 877 6.7% 2,545 5.5% EBITDA 128 8.5% 366 9.3% Margin 14.6% - 14.4% - EBITA 50 13.6% 125 14.7% Margin 5.7% - 4.9% - EBT 39
Slide 23: Material Handling – 9M/2005 yoy market growth
Linde Group Material Handling – 9M/2005 yoy market growth (order intake, uníts) Counterbalance Trucks Warehouse Trucks 40% 34% 35% 29% 30% 25% 23% 20% 14% 15% 11% 12% 10% 10% 10% 9% 9% 10% 7% 7% 5% 4% 5% -1% 0% Europe Eastern N. S. Asia China Others World -5% Europe America America Total 3% 12% 6% 3
Slide 24: Material Handling – Important milestones of GO program reached
Linde Group Material Handling – Important milestones of GO program reached — Labour agreement signed for Linde and Still German production sites — Flexible, cost competitive production instead of costly delocalization — Significant double-digit contribution to mid term ROCE target — Second brand OM
Slide 25: Material Handling - Outlook
Linde Group Material Handling - Outlook — Market growth below 2004, no significant change in trends expected — Asia, especially China, and North America remain the major growth drivers — Moderate growth in Western Europe — Eastern Europe maintains double-digit growth rates — Confirmed outlook for FY
Slide 26: 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 26