Linde Plc · NASDAQ:LIN
Linde — Investor Presentation (September 2024)
45 slides from Linde's investor presentation, Sep 30, 2024
Slide 1: Why Linde
Making our world more productive * Why Linde = 2024 Edition 8 Updated 9/30/24
Slide 2: Outline
Why Linde Outline Introduction to Industrial Gases 2. — Introduction to Linde 2.1 Overview 2.2 Gases 2.3 Engineering Strategy Capital Allocation Policy Through an ESG Lens Relative Valuation Summary en ey > Ww Appendix
Slide 3: Introduction to Industrial Gases
Slide 4: Industrial Gases - Primary Products
Industrial Gases - Primary Products — Atmospheric Gases = Nitrogen = Oxygen = Argon — Process Gases = Hydrogen = Carbon dioxide = Helium = Rare gases: Krypton Neon Xenon = Carbon monoxide = Acetylene = Propane Ne Xe
Slide 5: Industrial Gases - Introduction
Industrial Gases - Introduction Lintle - ily What Are Industrial Gases? — Most common industrial gases are oxygen, nitrogen, hydrogen, carbon dioxide and argon — Atmosphere consists of 78% nitrogen, 21% oxygen, 1% argon and traces of neon, krypton and xenon a How Are They Produced? — Atmospheric Gas
Slide 6: Industrial Gases — Distribution Modes
Industrial Gases — Distribution Modes CUSTOMER TYPE Pipeline On-site High Low iT Merchant Volume & Capital [h (| “—* C Intensity | Air Separation Unit # of Transactions SS] , — Packaged od cr ——) a nd (] fl] Filling Plant Low High
Slide 7: Industrial Gases - Product Overview
Industrial Gases - Product Overview Linde Products Primary Sources Feedstock Distribution Modes 4 Oxygen Packaged Merchant On-site 3 Nitrogen = Air + Power Argon z) SMR; ATR, POX? Hydrocarbons/Power or 3 Twlcgen crude Hydrogen 2 z Carbon Dioxide Crude Carbon Dioxide | i ‘NG Processing _ Hydrocarbons
Slide 8: Linde Overview
Linde Overview es at. A leader in an attractive industry with products & ae = pul. services critical to 7 oe customers may (Geet Read productive
Slide 9: Vision, Mission & Value
Vision, Mission & Value Our Vision To be the best performing global industrial gases and engineering company, where our people deliver innovative and sustainable solutions for our customers in a connected world. an Our Mission Making our world more productive. @ Our Values : i hd . ; . a} ovr. VT In
Slide 10: Linde Overview
Linde Overview 2023 Key Facts 2023 Revenue by Segment Other! Net Sales ($B) 33 Engineering EBIT ($B) 9 EBIT Margin 27.6% OCF ($B) 9 ROC 25.4% FTEs ('000) 66 Global Company With quality Results Source: 2023 Public filing, non-GAAP figures. 1. Includes Linde Advanced Material Technologies, GIST and Gl
Slide 11: Resilience and Growth
a) D) wa) mM oO cD aS, — — Resilience and Growth
Slide 12: Historical Performance
Historical Performance Results 1993 - 2023 Dividend OCF Linde! Key Competitors? 9% 5% 12% 8% 13% 9% 11% 7% 1993 Lintle Linde CAGR 12% S&P 500 CAGR 8% Index EPS 2023 (1993 = 100) Consistently Outperforming Peers and the Market 1. Pre-2019 (merger) data uses predecessor company Praxair, Inc. 2. Compet
Slide 13: Integrated Supply Model
Integrated Supply Model oLinlle Contracts Types -—— Linde Worldwide On-site: 15 - 20 years — Take-or-pay, guaranteed return — Cost pass-through Merchant: 3 - 7 years — Creates network density — Contracts & services — Scale, efficient production, distribution & low-cost energy Packaged: 1 - 3 years —
Slide 14: Sales by End Markets
Sales by End Markets Consumer Related End Markets. More Resilient Industrial Related End Markets. More Cyclical Healthcare 9 EI Hospitals Medical Offices and Clinics Homecare Customers Diagnostic Facilities (MRI) Chemicals & Energy Oil Companies Chemical Companies Syngas Users Food & Beverage Bevera
Slide 15: Gases Geographic Segments
Gases Geographic Segments [AMERICAS 46% Sales: $14.3B > EBIT: i ae es North America — Linde Gases US — Canada — Linde Gas & Equipment Latin America — North Latin America — South Latin America Lincare Source: 2023 Public filings, non-GAAP figures. EBIT: Earnings Before Interest and Taxes, OPM: Operat
Slide 16: Defensive Business Model
Defensive Business Model... ...Provides Significant Downside Protection Hl defensive Ml cyclical 22% 22% 17% 8% 7 y 9% 9% 54% ™ 8% By End Market | | 14% 9% 7% 4% 1% Health- 4 Food& Chemicals & Metals Manu- care Glsatas Beverage Energy & Mining facturing Other APAC Americas EMEA By Geography . : 38%
Slide 17: Linde Engineering
Linde Engineering World-Class Engineering capabilities to execute large projects
Slide 18: Engineering Overview
Engineering Overview finite Business Model Technology Execution People — Key enabler for onsite projects — Holistic clean hydrogen — World-class execution — Acknowledged experts in core (sale of gas) offerings capabilities globally disciplines — T-EPC, selective E, E&P, EPC based § — Best-in-class a
Slide 19: Strategy
Strategy Delivers on average 10%+ EPS growth plus clean energy
Slide 20: Linde Strategy
Linde Strategy Underpinned by Safety, Compliance, People and Sustainability Lente Our Strategy... < ... And Its Execution — Pricing a — Productivity — Density — Innovation — Secular Growth D — Backlog — Technology Advantage Prioritize 2 — Partnerships Clean Energy — Opportunity Pipeline Deliver 10%+
Slide 21: Geography, End Market, Clean Energy
Geography End Market Clean Energy
Slide 22: Clean Energy Transition
Clean Energy Transition Today's Energy Market Clean Energy Market >80% is Fossil Fuel based \ Green Hydrogen (coal, oil & natural gas) \ (incl. ammonia & methanol) Water electrolysis powered by renewable energy with no CO, emission wth Opportunity in Linde eelh 1. Clean Energy (CE) is associated wit
Slide 23: Clean Energy Technology
Clean Energy Technology Full Portfolio to Support Decarbonization Electrolysis - PEM, AEL Blue / Green Ammonia Synthesis Ammonia Cracking H, Liquefaction Scale-Up Green Hydrogen H, Transportation incl. Carrier H, Refuel Flexible Air Separation Linde Sustainable Olefin Technology incl. e-Furnace ) Co
Slide 24: Capabilities Throughout the Value Chain
Capabilities Throughout the Value Chain finite . Industry il [le Underground ‘cals i ipelil 5 — Chemicals industr [1 SMR, ATR, POX... ben] Pipelines FAI storage a Y ill —Fertilizer Fi] —Steel j Power ESTAS = i ll ...with CCS || Liquefaction Tanks Power generation | ta | = FAO —NH; co-firing Mobility
Slide 25: Linde's Clean Energy Opportunity
Linde’s Clean Energy Opportunity Well Positioned to Invest >$50B Globally ty Decarbonize Linde "en Decarbonize Customer New Markets — Decarbonize current Linde assets — Decarbonize customer processes e.g., — Enable new markets e.g., clean Strategy e.g., SMRs, ATRs, POX Petrochemicals, Refining, Stee
Slide 26: Capital Allocation Policy
Capital Allocation Policy Good stewards of Capital - no surprises
Slide 27: Capital Allocation Policy
Capital Allocation Policy oLinlle Risk / Reward Maintain A / A2 Credit Rating Mandate . — Annually increase dividend Key Drivers Higher Risk —Double digit returns Unlevered, post tax, low double digit returns Lower Risk —Reputable customers — Competitive customer Priority Invest in the Business mari
Slide 28: Through an ESG Lens
Through an ESG Lens We help our customers avoid more than 2x our own GHG emissions
Slide 29: Environmental
Environmental ~2.4 38.1 million Emitted MT (0, Linde GHG footprint Linde Applications Enable More Than 2x Carbon Productivity 16.6 million MT CO,e Scope 1 GHG emissions: 12.2 million MT from hydrogen production, 4.4 million from other GHG emissions, driving and natural gas use 21.6 million MT CO,e S
Slide 30: Environmental: Road to Climate Neutrality
Environmental Road to Climate Neutrality* Status: Roadmap in Place Activities include: Deploy widespread use of CCS and renewable f Transition fleet to zero emissions Target sourcing of ~100% renewable / low-carbon pow Address remainder through negative emissions projects Achievements include: — Rea
Slide 31: Sustainable Development
Sustainable Development Making Our World More Productive, Sustainably Recognitions & Awards Dow Jones Sustainability World Index — Included in DJS! World for 21 consecutive years S&P Global Corporate Sustainability Assessment — 100 Percentile in Chemicals; #1 in Industrial Gases cDP — Linde achieved
Slide 32: Social Responsibility
Social Responsibility 30% of our total Linde giving in 2023 Awarded >$3.7 million in scholarships and other Benefited 300,000 people through >70,000 volunteer hours as part of funded diversity-related initiatives academic opportunities in 2023 employee community engagement projects 2023 community en
Slide 33: Governance
Governance Lintle Annual Election of Directors — Clawback policy & prohibition on hedging or pledging Linde stock Separate Chairman and CEO roles & a lead Independent Director i — Dedicated Board committees focused on: Board diversity: = Environment - Sustainability Committee = Board is 40% diverse
Slide 34: Relative Valuation
Relative Valuation Consistently delivering alpha for shareholders
Slide 35: Valuation versus Top S&P Materials Members
Valuation versus Top S&P Materials Members Lintle Price / Earnings (P/E) Enterprise Value / EBITDA (EV/EBITDA) ———st 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Hi Linde [i] Member 1 Member 2 — Currently trading at a discount in P/E (1x- 9x) and EV / EBITDA (3x - 4x) versus highest valued memb
Slide 36: Financials versus Top S&P Materials Members
Financials versus Top S&P Materials Members Lintle Earnings / Share Return on Capital (Growth) (Capital Management) 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Operating Margin Free Cash Flow (Quality) (Cash generation) 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 HB tinde = Member 1 Memb
Slide 37: 5-Year Total Shareholder Return (TSR)
5-Year Total Shareholder Return” (TSR) Index TSR 12/31/18 to 12/31/23 (Dec. 31, 2018 = 100) Member 1 +42% Member 2 +149% S&P Materials +70% S&P 500 +107% 2019 2020 2021 2022 2023 —— LIN vs S&P 500 +7.6% +7.5% +4.7% +13.7% +1.4% Linde, one of only 12 members in S&P 500 (and only in sector) with posit
Slide 38: Five-year Average Growth Rate
Five-year (‘19 - ’23) Average Growth Rate Capital Allocation (Investments, Share Count, Growth Taxes & Int. Sales 2%' 0% 4% EPS? 18% -2% | | 5% | | 15% — For 5 consecutive years, Linde has grown EPS double-digits despite macro headwinds — The major driver for EPS growth is management actions - prici
Slide 39: Summary
Vy ng OU! world productive ray 7, gE $ N 7 ! 1 m am ' £
Slide 40: Linde Because...
Linde Because... — Leader in an attractive industry with products & services critical to customers — Unrivalled network density across all supply modes — Enabling energy transition, ~$50B investment opportunity pipeline globally — World-class capabilities with proven track record of execution — Prov
Slide 41: Appendix
IX Append
Slide 42: 5-Year Financial Performance
5-Year Financial Performance EPS ($)! +129% Operating Profit Margin’ +62% 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Operating Cash Flow ($B)? +52% Roc! +147% 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 HB linde J competitor1 J competitor 2 ] Industry Leading Results Wher
Slide 43: 5-Year Total Shareholder Return (TSR)
5-Year Total Shareholder Return” (TSR) Index TSR 12/31/18 to 12/31/23 (0ec. 31, 2018 = 100) Linde +185% Competitor 1 +118% Competitor 2 +92% S&P 500 +107% 2019 2020 2021 2022 2023 Linde, one of only 12 members in S&P 500 (and only in sector) with positive alpha 5 consecutive years A Company for All
Slide 44: Historical Performance
Historical Performance* VA 435 Sales ($B) 16 EPS ($) 30 14 25 12 10 20 Cony 8 1296) 15 6 10 4 5 2 0 0 1993 1997 2002 2007 2012 2017 2023 1993 1997 2002 2007 2012 2017 2023 Operating Cash Flow ($B) Dividend ($) 10 6 8 5 4 6 3 ED) 4 2 2 1 0 0 1993 1997 2002 2007 2012 2017 2023 1993 1997 2002 2007 2012
Slide 45: Thank you