Linde Plc · NASDAQ:LIN
Linde — Praxair — Shareholder Meeting (May 2017)
123 slides from Linde's shareholder meeting presentation, May 10, 2017
Slide 1: Leading. The Linde Group
Le Leading. THE LINDE GROUP
Slide 2: Welcome to the Annual General Meeting 2017 of Linde AG
Welcome to theAnnual General Meeting 2017 of Linde AG
Slide 3: Professor Dr Wolfgang Reitzle
Professor Dr Wolfgang Reitzle
Slide 4: TOP
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6
Slide 5: Presentation of the annual financial statements 2016
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6 Presentation of the annual financialstatements 2016
Slide 6: Professor Dr Aldo Belloni Leveraging potential
Professor Dr Aldo Belloni Leveraging potential
Slide 7: Welcome!
The Linde Group Welcome!
Slide 8: Fundamentally stable business model
The Linde Group Fundamentally stable business model
Slide 9: 2016 was an eventful year
The Linde Group 2016 was an eventful year
Slide 10: We are facing major challenges
The Linde Group We are facing major challenges
Slide 11: Many thanks to our employees!
The Linde Group Many thanks to our employees!
Slide 12: 1. Business performance and leveraging our potential
The Linde Group 1. Business performance and leveraging our potential
Slide 13: Business performance and leveraging our potential; Future prospects and the planned merger
The Linde Group Business performance and leveraging our potentialFuture prospects and the planned merger
Slide 14: 2016
The Linde Group 2016
Slide 15: 2016 Stable earnings power maintained
The Linde Group 2016 Stable earnings power maintained
Slide 16: Increases in revenue and earnings achieved again
The Linde Group 2016 Stable earnings power maintainedIncreases in revenue and earnings achieved again
Slide 17: 2016 Group revenue: ~ €17 billion
The Linde Group 2016 Group revenue: ~ €17 billion
Slide 18: Operating profit: up 0.3%
The Linde Group 2016 Group revenue: ~ €17 billion Operating profit: up 0.3%
Slide 19: Operating margin: 24.2%
The Linde Group 2016 Group revenue: ~ €17 billion Operating profit: up 0.3%Operating margin: 24.2%
Slide 20: 2016 ROCE: 9.4%
The Linde Group 2016 ROCE: 9.4%
Slide 21: Earnings per share: up 6.6%
The Linde Group 2016 ROCE: 9.4%Earnings per share: up 6.6%
Slide 22: Cash flow: €3.4 billion
The Linde Group 2016 ROCE: 9.4%Earnings per share: up 6.6% Cash flow: € 3.4 billion
Slide 23: Slide 23
Slide 24: The divisions in 2016 – Gases Division
The divisions in 2016 – Gases Division
Slide 25: Gases Division revenue: around €14.9 billion
The divisions in 2016 – Gases Division Revenue: around €14.9 billion
Slide 26: Gases Division operating profit: up 1.4%
The divisions in 2016 – Gases Division Revenue: around €14.9 billion Operating profit: up 1.4%
Slide 27: Gases Division operating margin: 28.3%
The divisions in 2016 – Gases Division Revenue: around €14.9 billion Operating profit: up 1.4%Operating margin: 28.3%
Slide 28: Gases Division successes: new projects around the world
The divisions in 2016 – Gases Division Successes: new projects around the world
Slide 29: Gases Division – Americas segment
The divisions in 2016 – Gases Division Americas segment
Slide 30: Americas: revenue growth of 0.9%
The divisions in 2016 – Gases Division Americas segment Revenue growth of 0.9%
Slide 31: Americas: operating profit rose by 1.6%
The divisions in 2016 – Gases Division Americas segment Revenue growth of 0.9% Operating profit rose by 1.6%
Slide 32: Gases Division – EMEA segment
The divisions in 2016 – Gases Division EMEA segment
Slide 33: EMEA: revenue similar to prior year
The divisions in 2016 – Gases Division EMEA segment Revenue on a comparable basis similar to prior year
Slide 34: EMEA: slight improvement in operating profit
The divisions in 2016 – Gases Division EMEA segment Revenue on a comparable basis similar to prior year Slight improvement in operating profit
Slide 35: Gases Division – Asia/Pacific segment
The divisions in 2016 – Gases Division Asia/Pacific segment
Slide 36: Asia/Pacific: revenue rose by 1.8%
The divisions in 2016 – Gases Division Asia/Pacific segment Revenue on a comparable basis rose by 1.8%
Slide 37: Asia/Pacific: operating profit up 2%
The divisions in 2016 – Gases Division Asia/Pacific segment Revenue on a comparable basis rose by 1.8% Operating profit: up 2%
Slide 38: Slide 38
Slide 39: The divisions in 2016 – Engineering Division
The divisions in 2016 – Engineering Division
Slide 40: Engineering Division revenue: fall of 9.4%
The divisions in 2016 – Engineering Division Revenue: fall of 9.4%
Slide 41: Engineering operating profit: €196 million
The divisions in 2016 – Engineering Division Revenue: fall of 9.4% Operating profit: €196 million
Slide 42: Engineering operating margin: 8.3%
The divisions in 2016 – Engineering Division Revenue: fall of 9.4% Operating profit: €196 million Operating margin: 8.3%
Slide 43: Operating margin above the industry average
The divisions in 2016 – Engineering Division Operating margin above the industry average
Slide 44: Order backlog remained solid
The divisions in 2016 – Engineering Division Operating margin above the industry average Order backlog remained solid
Slide 45: Dividend
The Linde Group – Dividend
Slide 46: Dividend: continuity and performance
The Linde Group – Dividend Continuity and performance
Slide 47: Dividend of €3.70
The Linde Group – Dividend Continuity and performance Dividend of €3.70
Slide 48: Dividend increase of 7.2%
The Linde Group – Dividend Continuity and performance Dividend of €3.70 Increase of 7.2%
Slide 49: 1st quarter of 2017
The Linde Group – 1st quarter of 2017
Slide 50: We have made a decent start
The Linde Group – 1st quarter of 2017 We have made a decent start
Slide 51: Measures introduced are having an effect
The Linde Group – 1st quarter of 2017 We have made a decent start Measures introduced are having an effect
Slide 52: 1st quarter of 2017 – Group
1st quarter of 2017 – Group
Slide 53: Group revenue: up 4.2%
1st quarter of 2017 – Group Group revenue: up 4.2%
Slide 54: Operating profit: up 3.1%
1st quarter of 2017 – Group Group revenue: up 4.2% Operating profit: up 3.1%
Slide 55: Operating margin: 23.7%
1st quarter of 2017 – Group Group revenue: up 4.2% Operating profit: up 3.1% Operating margin: 23.7%
Slide 56: 1st quarter of 2017 – Gases Division
1st quarter of 2017 – Gases Division
Slide 57: Gases Division revenue: up 0.9%
1st quarter of 2017 – Gases Division Group revenue: up 0.9%
Slide 58: Gases Division operating profit: up 2.4%
1st quarter of 2017 – Gases Division Group revenue: up 0.9% Operating profit: up 2.4%
Slide 59: Gases Division operating margin: 27.7%
1st quarter of 2017 – Gases Division Group revenue: up 0.9% Operating profit: up 2.4% Operating margin: 27.7%
Slide 60: 1st quarter of 2017 – Engineering Division
1st quarter of 2017 – Engineering Division
Slide 61: Engineering revenue: €648 million
1st quarter of 2017 – Engineering Division Revenue: €648 million
Slide 62: Engineering operating profit: €53 million
1st quarter of 2017 – Engineering Division Revenue: €648 million Operating profit: €53 million
Slide 63: Engineering operating margin: 8.2%
1st quarter of 2017 – Engineering Division Operating margin: 8.2%
Slide 64: Order backlog remained solid
1st quarter of 2017 – Engineering Division Operating margin: 8.2% Order backlog remained solid
Slide 65: Outlook for 2017
The Linde Group – Outlook for 2017
Slide 66: Outlook: Group revenue between 3% below and 3% above 2016
The Linde Group – Outlook for 2017 Group revenue: between 3% below and 3% above 2016 figure (after adjusting for exchange rate effects)
Slide 67: Outlook: operating profit on a par with or up to 7% higher
The Linde Group – Outlook for 2017 Group revenue: between 3% below and 3% above 2016 figure (after adjusting for exchange rate effects) Operating profit: on a par with or up to 7% higher than in 2016 (after adjusting for exchange rate effects)
Slide 68: Future prospects
The Linde Group – Future prospects
Slide 69: Global economy: risks and uncertainties
The Linde Group – Future prospects Global economy: risks and uncertainties
Slide 70: Competition: high cost pressures
The Linde Group – Future prospects Global economy: risks and uncertainties Competition: high cost pressures
Slide 71: Leveraging potential
The Linde Group – Leveraging potential
Slide 72: Global restructuring measures
The Linde Group – Leveraging potential Global restructuring measures
Slide 73: Organisational adjustments
The Linde Group – Leveraging potential Global restructuring measures Organisational adjustments
Slide 74: Reduction in non-staff costs
The Linde Group – Leveraging potential Global restructuring measures Organisational adjustments Reduction in non-staff costs
Slide 75: Planned merger
The Linde Group – Planned merger
Slide 76: Merger will create value
The Linde Group – Planned merger Merger will create value
Slide 77: Two leading companies become one unit
The Linde Group – Planned merger Merger will create valueTwo leading companies become one unit
Slide 78: Very good progress with the negotiations
The Linde Group – Planned merger Very good progress with the negotiations
Slide 79: Main requirement areas
The Linde Group –Main requirement areas
Slide 80: 1. Expand our geographic presence
The Linde Group – Main requirement areas 1. Expand our geographic presence
Slide 81: 2. Create growth trends
The Linde Group – Main requirement areas 2. Create growth trends
Slide 82: 3. Ensure financial stability and flexibility
The Linde Group –Main requirement areas 3. Ensure financial stability and flexibility
Slide 83: 4. Drive forward technology and innovations
The Linde Group – Main requirement areas 4. Drive forward technology and innovations
Slide 84: 5. Embed a performance culture
The Linde Group – Main requirement areas 5. Embed a performance culture
Slide 85: Planned merger
The Linde Group – Planned merger
Slide 86: Newly-formed holding company called Linde
The Linde Group – Planned merger Newly-formed holding company called Linde
Slide 87: Listings to be sought: S&P 500 and DAX
The Linde Group – Planned merger Newly-formed holding company called Linde Listings to be sought: S&P 500 and DAX
Slide 88: Public exchange offer to Linde shareholders
The Linde Group – Planned merger Public exchange offer to Linde shareholders
Slide 89: 1.54 shares in the new company for 1 Linde share
The Linde Group – Planned merger Public exchange offer to Linde shareholders 1.54 shares in the new company for 1 Linde share
Slide 90: Valuation ratio: 50% : 50%
The Linde Group – Planned merger Public exchange offer to Linde shareholders 1.54 shares in the new company for 1 Linde shareValuation ratio: 50% : 50%
Slide 91: Completion in 2018
The Linde Group – Planned merger Completion in 2018
Slide 92: Planned merger
The Linde Group – Planned merger
Slide 93: Comments on the current position
The Linde Group – Planned merger Comments on the current position
Slide 94: Each Linde shareholder may decide independently
The Linde Group – Planned merger Each Linde shareholder may decide independently
Slide 95: No shareholder is obliged to exchange shares
The Linde Group – Planned merger No shareholder is obliged to exchange his or her shares
Slide 96: Transaction only implemented with overwhelming majority
The Linde Group – Planned merger Transaction only implemented if there is an overwhelming majority
Slide 97: Decision based on extensive information
The Linde Group – Planned merger Decision will be able to be based on extensive information
Slide 98: Transaction accords with standard practice
The Linde Group – Planned merger Transaction accords with standard practice
Slide 99: Organisational reasons
The Linde Group – Planned merger Organisational reasons
Slide 100: Legitimation by the shareholders of both merger partners
The Linde Group – Planned merger Legitimation by the shareholders of both merger partners
Slide 101: The Linde Group
The Linde Group
Slide 102: Confident about the future
The Linde Group Confident about the future
Slide 103: Reliable for our shareholders
The Linde Group Confident about the future Reliable for our shareholders
Slide 104: Thank you very much!
The Linde Group Thank you very much!
Slide 105: Dr Thomas Enders
Dr Thomas Enders
Slide 106: Dr Sven Schneider
Dr Sven Schneider
Slide 107: Attendance
Attendance
Slide 108: TOP
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6
Slide 109: Resolution on the appropriation of the balance sheet profit
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6 Resolution on the appropriation of the balance sheet profit
Slide 110: Resolution on the discharge of the Executive Board members
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6 Resolution on the discharge of the actions of the Executive Board members
Slide 111: Resolution on the discharge of the Supervisory Board members
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6 Resolution on the discharge of the actions of the Supervisory Board members
Slide 112: Resolution on the appointment of public auditors
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6 Resolution on the appointment of public auditors
Slide 113: Election to the Supervisory Board
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6 Election to the Supervisory Board
Slide 114: General debate
General debate
Slide 115: Voting
Voting
Slide 116: Attendance
Attendance
Slide 117: TOP
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6
Slide 118: Resolution on the appropriation of the balance sheet profit
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6 Resolution on the appropriation of the balance sheet profit
Slide 119: Resolution on the discharge of the Executive Board members
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6 Resolution on the discharge of the actions of the Executive Board members
Slide 120: Resolution on the discharge of the Supervisory Board members
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6 Resolution on the discharge of the actions of the Supervisory Board members
Slide 121: Resolution on the appointment of public auditors
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6 Resolution on the appointment of public auditors
Slide 122: Election to the Supervisory Board
TOP 1 TOP 2 TOP 3 TOP 4 TOP 5 TOP 6 Election to the Supervisory Board
Slide 123: See you at the Annual General Meeting May 2018
See you at theAnnual General Meeting 3 May 2018 Additional Information and Where to Find It Should Praxair, Inc. (“Praxair”) and Linde AG (“Linde”) proceed with the proposed business combination transaction, Praxair and Linde expect that a newly formed holding company (“New Holdco”) will file a Regi