Linde plc · NASDAQ:LIN
Linde — 9M 2013 Earnings Presentation
22 slides from Linde's earnings presentation, Oct 29, 2013
Slide 1: Conference Call 9M 2013 Results
Conference Call 9M 2013 Results Georg Denoke CFO and Member of the Executive Board 29 October 2013 1 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about Linde AG (“Linde”) and their respective subsidiaries and businesses. These include, without limitation, those concerning the strategy of an integrated group, future growth potential of markets and products, profitability in speci
Slide 3: Performance – 9M 2013
Performance – 9M 2013 Solid performance despite severe currency headwinds 9M 2012 9M 2013 yoy Revenue [€m] 11,469 12,468 +8.7% Operating Profit* [€m] 2,680 2,996 +11.8% Operating Margin [€m] 23.4% 24.0% +60bp Operating Cash Flow [€m] 1,590 2,158 +35.7% EPS reported [€] 5.09 5.38 +5.7% — Solid growth
Slide 4: Group, revenue and operating profit by divisions
Group, revenue and operating profit by divisions Stable margin development [€m] Revenue [€m] Operating Profit 12,468 2,996 11,469 +8.7% 2,680 +11.8% 10,510 9,620 +9.3% 27.1% 2,913 27.7% 2,607 +11.7% +18.9% 1,740 2,068 +5.1% 10.9% 12.3% 109 -110 214 225 -141 -142 9M 2012 9M 2013 9M 2012 9M 2013 Gases
Slide 5: Gases Division, sales bridge
Gases Division, sales bridge Price/volume increase of 3.3%* [€m] +3.3%* 10,510 +9.6% 9,620 - 3.8% -2.0% +0.1% 9M 2012 Currency Natural Gas Lincare Price/Volume 9M 2013 *including € 97m changes in consolidation from bolt-on acquisitions (European Healthcare acquisitions and others) and not adjusting
Slide 6: Gases Division, currency impact
Gases Division, currency impact Impact on sales [€m] Negative impact on sales in Q3 2013 243 64 10 9 12 18 31 35 64 AUD USD ZAR GBP BRL INR VEF Other Total [€m] Negative impact on sales in 9M 2013 366 66 17 21 26 33 71 46 86 AUD USD ZAR GBP BRL INR VEF Other Total 6
Slide 7: Gases Division, revenue by operating segment
Gases Division, revenue by operating segment Underlying growth in all segments [€m] EMEA Asia/Pacific Americas 4,518 4,569 +1.1% 3,190 2,884 2,843 -1.4% 2,299 +38.8% +4.1%* +3.8%* +2.1%* 9M 2012 9M 2013 9M 2012 9M 2013 9M 2012 9M 2013 — Stronger development in Bulk — 7.0% underlying growth in Asia,
Slide 8: Gases Division, operating profit by operating segment
Gases Division, operating profit by operating segment Resilient margin development [€m] EMEA Asia/Pacific Americas 1,280 +2.7% 1,314 852* 743 +0.5% 747 584 +45.9% 28.3% 28.8% 25.8% 26.3% 25.4% 26.7% 9M 2012 9M 2013 9M 2012 9M 2013 9M 2012 9M 2013 Margin Development — EMEA margin further improved — A
Slide 9: Gases Division, revenue by product areas
Gases Division, revenue by product areas Stable growth in a more challenging macro-environment [€m], comparable* (consolidated) Healthcare +3.3% 10,510 10,175 — Main growth contributions from EMEA and Americas 2,263 — Q3 impacted by CB2 but positive volume Healthcare 2,146 +5.5% development Tonnage
Slide 10: Engineering Division, key figures
Engineering Division, key figures Record order intake and high order backlog — Strong project wins in external sales in the area of air separation plants as well as in hydrogen and synthesis gas plants — More than 70% of order intake from Asia/Pacific and Americas [€m] Sales Order Intake Order Backl
Slide 11: Group, realising opportunities
Group, realising opportunities Utilising the synergetic setup Gases projects Engineering projects JSC KuibschevAzot | Russia | ~ € 275 m Shenhua Group | China | ~ € 200 m — New JV of Linde and KuibyschevAzot — Supply of six large-scale air — Large ammonia on-site plant with separation units for one
Slide 12: Gases project pipeline & joint market opportunities
Gases project pipeline & joint market opportunities Strong project pipeline – Focus on execution Amount of committed Gases projects by on-stream date Development of market opportunities [€m] (12 months forward) ~900 ~800 ~800 [€bn] ~300 4.0 4.3 4.2 2.6 2013E 2014E 2015E 2016E 2010 2011 2012 2013 — A
Slide 13: Gases Division, capex
Gases Division, capex Investment in future growth 15% 15% capex/sales ratio mid-term: 13% 13% average ~13% plus** 12% 11% ~2,300 capex [€m]* 2,005 1,451 1,439 1,487 1,326 1,269 1,062 1,029 2007 2008 2009 2010 2011 9M 2012 9M 2013E * figures before 2012 not adjusted for IFRS 10, IFRS 11 and IAS 19 |
Slide 14: Group, positive cash flow development
Group, positive cash flow development Operating cash flow increased by 35.7% [€m] Q1 2013 Q2 2013 Q3 2013 9M 2013 9M 2012 Operating profit 953 1,013 1,030 2,996 2,680 Change in Working Capital -259 -28 119 -168 -488 Other changes -172 -315 -183 -670 -602 Operating Cash Flow 522 670 966 2,158 1,590 I
Slide 15: Group, solid financial position
Group, solid financial position Debt reduction due to positive cash flow development Net debt/EBITDA* [x] — Net debt/EBITDA ratio improved to 2.1 — Lincare acquisition credit facility 2.5 2.6 entirely refinanced with capital 2.3 2.1 market debt 1.9 — € 400m of subordinated bonds 1.6 redeemed in July
Slide 16: Outlook
Outlook Short-term outlook 2013 YTD negative currency impact** Revenue Further increase vs. 2012 € 407 m Operating Profit*** Around 4 billion Euro € 88 m Gases Division Revenue and operating profit increase vs. 2012 € 366 m Engineering Division Revenue at 2012 level & operating € 25 m margin of at l
Slide 17: Appendix
pe Li Leading. THE LINDE GROUP
Slide 18: Group, 9M 2013 Key P&L items
Group, 9M 2013 Key P&L items [€m] FY 2012 9M 2012 9M 2013 ∆ in % Revenue 15,833 11,469 12,468 8.7 Operating profit 3,686 2,680 2,996 11.8 Operating margin 23.3% 23.4% 24.0% 60 bp PPA depreciation for BOC -260 -197 -170 13.7 Depreciation & amortisation (excl. PPA BOC) 1,372 -968 -1,182 -22.1 EBIT 2,0
Slide 19: Gases Division, operating segments Quarterly data
Gases Division, operating segments Quarterly data EMEA [€m] Q1 2012 Q1 2013 Q2 2012 Q2 2013 Q3 2012 Q3 2013 Revenue 1,460 1,497 1,514 1,549 1,544 1,523 Operating profit* 419 430 425 446 436 438 Operating margin 28.7% 28.7% 28.1% 28.8% 28.2% 28.8% Asia/Pacific [€m] Q1 2012 Q1 2013 Q2 2012 Q2 2013 Q3
Slide 20: Group EPS adjustment 9M 2013
Group EPS adjustment 9M 2013 PPA [€m] PPA Homecare 9M 2013 PPA BOC adjusted Homecare adjusted 9M 2012 as reported adjustment figures adjustment figures adjusted yoy EBIT 1,644 170 1,814 90 1,904 1,712 +11.2% Profit for the period 1,076 97 1,175 56 1,231 1,094 +12.5% Profit for the period 997 97 1,09
Slide 21: Group, definition of financial key figures
Group, definition of financial key figures Operating Return EBIT adjusted for amortisation of intangible assets and Profit depreciation of tangible assets adjusted Return EBIT Adjusted for the depreciation/amortization from purchase price allocation* ROCE Average Equity (incl. minorities) Capital +
Slide 22: Investor Relations
Investor Relations Contact Phone: +49 89 357 57 1321 Email: investorrelations@linde.com Internet: www.linde.com Financial calendar — FY report 2013: 17 March 2014 — 3M report 2014: 06 May 2014 — AGM 2014: 20 May 2014 — 6M report 2014: 01 August 2014 — 9M report 2014: 30 October 2014 22