Linde Plc · NASDAQ:LIN
Linde — The Linde Group — WestLB Deutschland Conference 2007
26 slides from Linde's conference presentation, Nov 15, 2007
Slide 1: The Linde Group. Growing Together.
The Linde Group. Growing Together. WestLB Deutschland Conference 2007 Frankfurt, November 15, 2007 Thomas Eisenlohr, Head of IR
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about Linde AG (“Linde”), The BOC Group plc (“BOC”) and their respective subsidiaries and businesses. These include, without limitation, those concerning the strategy of an integrated group, future growth potential of markets and produ
Slide 3: Contents
Contents 1 9 Months 2007 2 Status of Integration 3 Business Synergies and Business Development 3
Slide 4: Highlights
Highlights Ongoing underlying growth in operating performance — Group sales increase by 14.7% to € 8.958 bn after 9 months, Q3 sales up 18.6% to € 3.070 bn — 9M operating profit up by 16.7% to € 1.770 bn, 20.7% increase in Q3 to € 612 mn — 9M reported EPS rises to € 4.48 (06: € 3.38), on adjusted ba
Slide 5: Group Sales by segment, in € million
Group Sales by segment, in € million Q3 2006 Q3 2007 9M 2006 9M 2007 18.6% 14.7% 8,958 3,070 7,811 2,588 2,067 11.1% 2,297 6,279 9.1% 6,850 Gases Engineering 419 67.3% 701 1,211 51.5% 1,835 Corp./Cons. 102 -29.4% 72 321 -15.0% 273 5
Slide 6: Group Operating profit by segment, in € million
Group Operating profit by segment, in € million Q3 2006 Q3 2007 9M 2006 9M 2007 16.7% 20.7% 1,770 612 1,517 507 507 14.8% 582 1,524 12.0% 1,707 Gases Engineering 38 63.2% 62 106 50.9% 160 Corp./Cons. -38 15.8% -32 -113 14.2% -97 Op. margin 19.6% 19.9% 19.4% 19.8% 6
Slide 7: Gases Division Key Figures
Gases Division Key Figures — Sales increase of 7.5% on comparable basis for the nine-month period — Operating profit rises 12.0% to € 1.707 bn — Embedded Financial Lease impact on operating profit of € -96 mn in 9M — Operating margin further on positive trend (+60 bp per September 07) In € million Q
Slide 8: Gases Division Sales by product segment, 9M 2007
Gases Division Sales by product segment, 9M 2007* 9M 2006 9M 2007 734 Healthcare 674 8.9% 1,567 Tonnage 1,431 9.5% 2,103 1,982 6.1% Bulk Cylinder 2,519 7.7% 2,714 * In € million, unconsolidated, comparable (excluding currency, consolidation and natural gas price effects) 8
Slide 9: Engineering Division Key Figures
Engineering Division Key Figures — Order intake as of September close to high level of 2006 Others 6% — Nine-months sales rise 51.5% to € 1.835 bn HyCo Olefin 17% 35% — Increase in 9-months operating profit of 50.9% to € 160 mn Order intake — Order backlog stable at € 4.6 bn per September Natural 9M
Slide 10: Outlook: Double-digit growth of sales and operating profit in 2007
Outlook Double-digit growth of sales and operating profit in 2007 2007: Group — Sales of more than € 12 bn — Operating profit of € 2.3 -2.4 bn — Nebt debt to be below € 7.2 bn Gases Division — Sales increase above market growth — Overproportionate increase of operating profit — Further significant i
Slide 11: Contents
Contents 1 9 Months 2007 2 Status of Integration 3 Business Synergies and Business Development 11
Slide 12: Significant deleveraging achieved
Significant deleveraging achieved Year-end net debt target below € 7,2 bn In € million 13,677 Debt rating upgrade by one notch 6,951 from S&P and Moody´s in March / April 2007 (S&P: BBB; Moody’s: Baa1) 1,505 2005 Acquisition 9M 2007 of BOC 12
Slide 13: Capital market debt: Solid maturity profile
Capital market debt Solid maturity profile No major maturities until April 2012 after issuance of senior benchmark bonds in April at attractive rates: - € 1 bn, 5 year with fixed coupon of 4,375% (at midswap + 24bp) - € 1 bn, 10 years with fixed coupon of 4,750% (at midswap + 45 bp) - GBP 300 mn, 16
Slide 14: Synergy ramp-up / run-rate
Synergy ramp-up / run-rate End of 2008: € 250 mn In € million 30% 2007 100 15% Supply 20% Procurement 25% 65% G&A 45% 0 End 2006 Q1 Q2 Q3 Q4 — Confirmation of € 50 mn P&L impact in 2007 — G&A initiatives largely contribute to the impact in 2007, mainly driven by FTE reduction; Former BOC’s headquart
Slide 15: Continuous improvement culture
Continuous improvement culture GAP programme: Synergies — Strategic programme for •Integration related •Efficiency related future development of the Linde •€ 250 mn savings •Further growth company — Profitable growth and GAP efficiency improvement — Roll-out of experience from all programmes across
Slide 16: Contents
Contents 1 9 Months 2007 2 Status of Integration 3 Business Synergies and Business Development 16
Slide 17: Gases Division - a truly global player
Gases Division - a truly global player # 1 or 2 position in 55 countries Present in >70 countries representing >90% of global GDP Market Leader #2 Player Others 17
Slide 18: Gases Division: Leading position in 3 out of 6 growth segments
Gases Division Leading position in 3 out of 6 growth segments Global market shares per growth segments Geographies Products #1 35-40% #2 #1 #2 #1 #4 15-20% 15-20% 15-20% 15-20% 15-20% (1) (2) Eastern South Asia Healthcare Speciality Gases Hydrogen Europe America CAGR 10-15% 5-10% ~15% 6-8% 5-10% ~10
Slide 19: Tonnage market: Strong positioning for attractive market opportunities
Tonnage market Strong positioning for attractive market opportunities We have build up a strong market position — Global #2 after the BOC integration — Worldwide financial and execution capacities Global Tonnage Market — Strong competitive advantage from Engineering overlay — Gradual increase within
Slide 20: Gases Division Tonnage – pipeline of upcoming and recent start-ups
Gases Division Tonnage – pipeline of upcoming and recent start-ups BP/Sunoco USA Wacker/OMV Borsodchem Germany Hungary Valero Maksi Group SeverCorr USA Russia Bayer USA Corus TISCO PR China Netherlands PR China Chevron / Holly Total Elektrostal USA Germany voestalpine Ukraine Ma Steel Shell Austria
Slide 21: Engineering Division: Leading market position in all segments
Engineering Division Leading market position in all segments Air Separation Plants Hydrogen and Synthesis Gas Plants Top 1 Top 2 Products: Products: — Oxygen — H2/CO/Syngas — Nitrogen — Ammonia — Rare gases — Gas removal — Gas purification Main competitors: Main competitors: Air Liquide, Air Product
Slide 22: Engineering Division: Good presence in emerging markets (China)
Engineering Division Good presence in emerging markets (e. g. China) offers competitive advantage for the Gases Division [147 plants] Heilongjiang Jilin Liaoning Xinjiang Beijing Dalian Ningxia Tianjin Shandong Shanxi Jiangsu Gansu Shaanxi Henan Anhui Shanghai Taipei Hubei Taichung Sichuan Zhejiang
Slide 23: Engineering Division: Good presence in emerging markets (South and East Asia)
Engineering Division Good presence in emerging markets (e. g. South and East Asia) offers competitive advantage for the Gases Division [82 plants] Myanmar Hanoi Laos Hainan Yangon Thailand Sepon Bangkok Manila Cambodia Vietnam Philippines Sabah Brunei Malaysia Sarawak Singapor Sulawesi Borneo Sumatr
Slide 24: Extending our LNG capability
Extending our LNG capability Marketing a generic concept of floating LNG facilities Development of a Floating LNG Production, Storage and Offloading unit (“FPSO”) – Global Alliance with SBM, a market leader in the off- shore oil & gas industry – SBM contributes the marine technologies and its FPSO o
Slide 25: The Linde Group is a global industry leader
The Linde Group is a global industry leader Strong set-up for future value creation Pure play on Gases & Engineering Both divisions hold leading positions in attractive product segments Integrated offer provides us with a competitive advantage Truly global footprint Worldwide presence with strong lo
Slide 26: Thank you for your attention.
Thank you for your attention. WestLB Deutschland Conference 2007 Frankfurt, November 15, 2007 Thomas Eisenlohr, Head of IR