Slide 1: January – March 2009 Conference Call
January – March 2009 Conference Call Georg Denoke Member of the Executive Board & CFO 5 May 2009
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: Highlights
Highlights Q1 Group key figures Group sales of € 2.695 bn, 5.3% decline excl. currency Group operating profit of € 538 m, down 7.3% excl. currency Reported EPS of € 0.68 (-29.2%), adjusted EPS of € 0.99 (-23.2%) Cash Flow generation remains strong despite the tough market environment: Operating Cash
Slide 4: Group, sales by Divisions
Group, sales by Divisions Group sales down 5.3% excluding currency effects in € million, Q1 2008 Q1 2009 as reported 2,917 -7.6% 2,695 4,709 Gases Division — Comparable* sales development of -4.4%, -1.7% incl. bolt-on acquisitions — Volume effect from lower customer activity drives year-on-year sale
Slide 5: Group, operating profit by Divisions
Group, operating profit by Divisions Underlying margin remains strong with 20.7% in € million, Q1 2008 Q1 2009 as reported 602 -10.6% Gases Division 538 Gases — Operating profit -3.2% excl. currency — Operating margin of 25.3% only slightly below the previous year level (25.5%) — HPO acceleration an
Slide 6: Gases Division, sales bridge
Gases Division, sales bridge Sales -4.4% on comparable basis in € million +2.7% -2.8% 2,301 -1.8% -4.4% 2,157 Q1 2008 Consolidation Currency Natural Gas Price/Volume Q1 2009 6
Slide 7: Gases Division, operating segments: Western Europe
Gases Division, operating segments Western Europe in € million, as reported Sales Operating Profit Operating Margin -9.2% 283 -12.7% 1,030 935 247 27.5% -110 bps 26.4% Q1 2008 Q1 2009 Q1 2008 Q1 2009 Q1 2008 Q1 2009 Q1 highlights — Comparable sales development of -3.5%, impact from GBP weakness on r
Slide 8: Gases Division, operating segments: Americas
Gases Division, operating segments Americas in € million, as reported Sales Operating Profit Operating Margin -5.1% 104 - 104 +110 bps 20.8% 528 501 19.7% Q1 2008 Q1 2009 Q1 2008 Q1 2009 Q1 2008 Q1 2009 Q1 highlights — Comparable sales development of -7.1% — Operating margin supported by lower natur
Slide 9: Gases Division, operating segments: Asia & Eastern Europe
Gases Division, operating segments Asia & Eastern Europe in € million, as reported Sales Operating Profit Operating Margin 464 -7.8% -1.5% +190 bps 30.1% 428 131 129 28.2% Q1 2008 Q1 2009 Q1 2008 Q1 2009 Q1 2008 Q1 2009 Q1 highlights — Comparable sales development of -7.9% — China: volume declines i
Slide 10: Gases Division, operating segments: South Pacific & Africa
Gases Division, operating segments South Pacific & Africa in € million, as reported Sales Operating Profit Operating Margin 297 +4.0% 309 -2.9% 68 66 22.9% -150 bps 21.4% Q1 2008 Q1 2009 Q1 2008 Q1 2009 Q1 2008 Q1 2009 Q1 highlights — Comparable sales development of +2.0% — Currency impact from ZAR
Slide 11: Gases Division, sales by products areas (consolidated)
Gases Division, sales by products areas (consolidated) Volume decline in industrial applications, healthcare growing in € million, comparable*, consolidated 2,258* -4.4% 2,157 238 Healthcare +5.5% 251 522 Tonnage -4.4% 499 576 Bulk -6.9% 536 Cylinder 922 -5.5% 871 *excluding currency, natural gas pr
Slide 12: Gases Division: Project pipeline remains strong
Gases Division Project pipeline remains strong, despite some delays — 64 start-ups will deliver new revenue streams by 2011 (incl. JVs) — Project list remains strong, supported by Emerging Markets and energy applications 12 13 33 23 Americas Western Eastern Europe / ME Europe China / South and East
Slide 13: Gases Division, Joint Ventures
Gases Division, Joint Ventures Stronger operational performance of our JV activities in € million Proportionate Sales Share of Net Income (not incl. in the Group top-line) (contribution to operating profit) 10 Reduction due to full Driven by new plant 139 consolidation of former start-ups, esp. in A
Slide 14: Engineering Division
Engineering Division Execution on plan, strong backlog — Engineering Division delivers on planned order execution Others 14% — Order backlog of €4.082 bn (year-end 2008: €4.436 bn) Olefin — Unchanged margin target of 8% HyCo Order 37% 20% intake Q1 09 Nat. Gas 12% ASU 17% in € million Q1 08 Q1 09 ∆
Slide 15: Group – Cash Flow Statement
Group – Cash Flow Statement Strong Cash Flow generation in € million Q1 08 Q1 09 Operating Profit 602 538 Change in Working Capital -199 -37 Other changes -66 -89 Operating Cash Flow 337 412 Investment in tangibles/ intangibles -256 -267 Acquisitions -11 -60 Other 42 45 Investment Cash Flow -225 -28
Slide 16: Solid financial position
Solid financial position Well spread maturity profile with strong liquidity reserve Net debt in € bn Net debt/EBITDA ratio well within our target range of 2–3x 3,5 4.8 12.815 9.933 3 Target range: 6.427 6.423 6.522 2.7 2.0–3.0x 2.5 2,5 2 30/9/06 2006 2007 2008 31/3/09 2006 2007 2008 Financial debt:
Slide 17: Outlook
Outlook Market environment requires a scenario-based approach In an environment of severe industrial slowdown and still limited visibility, we continue with our scenario-based approach for the 2009 outlook: Group Forecasts for sales and earnings range from the same level as the prior year figures to
Slide 18: Appendix
Appendix rt LD THE LINDE GROUP
Slide 19: Group Financial Highlights
Group Financial Highlights in € million Q1 08 Q1 09 ' in % Sales 2,917 2,695 -7.6 Operating profit 602 538 -10.6 Margin 20.6 20.0 -60bps EBIT before special items and PPA depreciation 397 323 -18.6 Special items 15 0 - PPA depreciation 94 74 - EBIT 318 249 -21.7 Financial Result -79 -79 - Taxes 67 4
Slide 20: Group Financial Highlights
Group Financial Highlights in € million Q1 08 Q1 09 ' in % Net income - Part of shareholders Linde AG 160 115 -28.1 + depreciation/amortisation from purchase price allocation + 94 + 74 + special items - 15 - - net of tax -24 - 23 Adjusted Net Income 215 166 -22.8 - Restructuring costs - +20 + net of
Slide 21: Accounting considerations: Impact of PPA and EFL
Accounting considerations Impact of PPA and EFL Purchase Price Allocation (PPA) IFRIC 4: Embedded Finance Lease (EFL) Impact in Q1 2009: € 74 m (Q1 08: € 94 m) Impact* in Q1 2009: € -32 m (Q1 08: € -32 m) Expected impact FY 2009: €275-325 m Expected impact* FY 2009: €-118 m *(on Sales and EBITDA) Ba
Slide 22: Definition of financial key figures
Definition of financial key figures Operating Return EBITDA (incl. IFRIC 4 adjustment) excl. finance costs for pensions Profit excl. special items incl. share of net income from associates and joint ventures adjusted Return Operating profit - depreciation / amortisation ROCE excl. depreciation/amort
Slide 23: Thank you for your attention.
Thank you for your attention.