Slide 1: Investor Teleconference Presentation First Quarter 2024
Linde plc Investor Teleconference Presentation First Quarter 2024 May 2, 2024
Slide 2: Forward-Looking Statement
Forward-Looking Statement This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, cou
Slide 3: Global End Market Trends
Global End Market Trends % of Sales(1) YoY Sales(2) Seq. Sales(2) 1Q 2024 End Market & YoY Trend Growth Growth Consumer Related End Markets (More Resilient) Healthcare 17% -- -1% Food & Beverage 9% +6% +1% Electronics 9% +1% -- Industrial Related End Markets (More Cyclical) Manufacturing 22% +1% +2%
Slide 4: First-Quarter Adjusted Results
First-Quarter Adjusted Results (1) ($MM) 1Q 2024 4Q 2023 Var 1Q 2023 Var YOY SEQ. Sales Growth -1% - 2% Sales $8,100 $8,302 -2% $8,193 -1% Volume - 1% - 1% Operating Profit $2,341 $2,272 3% $2,206 6% Price / Mix + 2% + 1% % of Sales 28.9% 27.4% 26.9% Cost pass-thru - 2% - 1% Currency -- -- Income $1
Slide 5: 1Q Capital Management
1Q Capital Management Operating Cash Flow (OCF) Trend ($B) Raised dividend 9% in 2024 2023 2024 • 31 consecutive years of dividend increase Net share purchases $1B Access to low-cost capital • Issued €2.3 billion on Feb. 7th • 4 yr @ 3.0%, 7 yr @ 3.2%, 12 yr @ 3.4% OCF $1.9 $2.2 $2.5 $2.7 $2.0
Slide 6: 2024 Guidance
2024 Guidance 2nd Quarter 2024 Full-Year 2024 Adjusted EPS in the range of $15.30 to $15.60 (1) Adjusted EPS in the range of $3.70 to $3.80 (1) • +4% to +6% vs. 2023 • +8% to +10% vs. 2023 • Estimated YoY currency headwind -1% • Estimated YoY currency headwind -1% • +5% to +7% vs. 2023 excluding
Slide 7: Appendix
Appendix
Slide 8: Americas
Americas ($MM) 1Q 2024 4Q 2023 Var 1Q 2023 Var YOY SEQ. Sales Growth -- - 1% Sales $3,560 $3,583 -1% $3,551 0% Volume - 1% - 1% Operating Profit $1,088 $1,075 1% $1,025 6% Price / Mix + 3% + 1% % of Sales 30.6% 30.0% 28.9% Cost pass-thru - 2% - 1% Currency -- -- Acq / Div -- -- Sales by End Market
Slide 9: APAC
APAC ($MM) 1Q 2024 4Q 2023 Var 1Q 2023 Var YOY SEQ. Sales Growth -- - 3% Sales $1,591 $1,639 -3% $1,598 0% Volume + 3% - 3% Operating Profit $447 $452 -1% $423 6% Price / Mix + 1% -- % of Sales 28.1% 27.6% 26.5% Cost pass-thru -- -- Currency - 4% -- Acq / Div -- -- Sales by End Market YoY margins
Slide 10: EMEA
EMEA ($MM) 1Q 2024 4Q 2023 Var 1Q 2023 Var YOY SEQ. Sales $2,091 $2,100 0% $2,177 -4% Sales Growth - 4% -- Volume - 2% -- Operating Profit $687 $615 12% $607 13% Price / Mix + 3% + 2% % of Sales 32.9% 29.3% 27.9% Cost pass-thru - 5% - 3% Currency -- + 1% Acq / Div -- -- Sales by End Market Ex. cos
Slide 11: Engineering
Engineering ($MM) 1Q 2024 4Q 2023 Var 1Q 2023 Var Stable margins led by good execution and benefits from productivity and cost Sales $539 $658 -18% $540 0% actions Operating Profit $100 $119 -16% $149 -33% Order intake of projects, $0.4B % of Sales 18.6% 18.1% 27.6% SOP (sale of plant) backlog
Slide 12: Global Other
Global Other Margin improvement led by good ($MM) 1Q 2024 4Q 2023 Var 1Q 2023 Var performance in the coatings business and continued corporate cost Sales $319 $322 -1% $327 -2% optimization Operating Profit $19 $11 73% $2 850% 1Q operating profit higher than run rate % of Sales 6.0% 3.4% 0.6% dr
Slide 13: High-Quality Project Backlog $8.3B
High-Quality Project Backlog $8.3B Geography SOP Backlog (1) SOG Backlog (2) $3.4B $4.9B End Market Contractual growth Contractual growth Secure cash flow Secure cash flow Double-digit IRR Double-digit IRR Clean Energy High-quality customers High-quality customers Primarily enginee
Slide 14: Sustainable Development Highlights
Sustainable Development Highlights Best-in-class Enabled the safety performance 350,000 people avoidance of >2x more Lost Workday Case Rate more benefited from global GHG emissions than 4x better than U.S. employee community Occupational than were emitted in all the Health and Safety Administration
Slide 15: ESG Performance vs. 2028 Goals
ESG Performance vs. 2028 Goals Decarbonizing our Future (1) Target: 35% Reduction in GHG Emissions Intensity 2018-2028 Linde to Increase Green Hydrogen Production in Brazil Linde Signs Long-Term Agreements to Purchase Renewable Energy in China Linde Starts up Supply of Clean Hydrogen and Captu
Slide 16: Strategy: Sustainable value creation
Strategy Network density Capex efficiency Optimize the Base Productivity/digitalization Portfolio optimization Price management Price and volume Leverage the Recovery Cost management >10% EPS Operations optimization Growth Electronics Backlog start-up Capitalize on Growth Healt
Slide 17: Non-GAAP Measures
Non-GAAP Measures LINDE PLC AND SUBSIDIARIES SUMMARY NON-GAAP RECONCILIATIONS (UNAUDITED) The following adjusted amounts are Non-GAAP measures and are intended to supplement investors' understanding of the company's financial statements by providing measures which investors, financial analysts and m
Slide 18: Non-GAAP Measures, continued
Non-GAAP Measures, continued LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (UNAUDITED) The following Non-GAAP measures are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and
Slide 19: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2024 2023 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost Reported net pension and OPEB cost (benefit), excluding service cost $ (50) $ (39) $ (35) $ (45) (45) Add: Pension settlement charge
Slide 20: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2024 2023 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) Reported Income taxes $ 463 $ 459 $ 487 $ 438 $ 430 Reported effective tax rate 22.3 % 23.0 % 23.8 % 21.9 % 22.2 % Adjusted income taxes $ 528 $ 511 $ 548 $ 539 $ 532 Adjusted effective tax rate 22.7 %
Slide 21: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2024 2023 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) Adjusted Diluted EPS (b) Reported diluted EPS $ 3.35 $ 3.16 $ 3.19 $ 3.19 $ 3.06 Add: Pension settlement charge $ — 0.01 0.02 — $ — Add: Other charges (a) (0.01) (0.01) — (0.02) $ (0.05) Add: Purchase
Slide 22: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2024 2023 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) Adjusted EBITDA and % of Sales Net Income - Linde plc $ 1,627 $ 1,543 $ 1,565 $ 1,575 $ 1,516 Add: Noncontrolling interests 38 33 36 37 36 Add: Net pension and OPEB cost (benefit), excluding service co
Slide 23: Non-GAAP Measures, continued
Non-GAAP Measures, continued (a) The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.
Slide 24: Non-GAAP Measures, continued
Non-GAAP Measures, continued LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (Millions of dollars) (UNAUDITED) (Millions of dollars) 2024 2023 Q1 Q4 Q3 Q2 Q1 Available Operating Cash Flow (AOCF) and Base Capex - Available operating cash flow is a measure used by investors,
Slide 25: Non-GAAP Measures, continued
Non-GAAP Measures, continued LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (Millions of dollars) (UNAUDITED) (Millions of dollars) 2024 2023 Q1 Q4 Q3 Q2 Q1 Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evaluate
Slide 26: Non-GAAP Measures, continued
Non-GAAP Measures, continued (Millions of dollars) 2024 2023 Q1 Q4 Q3 Q2 Q1 Reported net income - Linde plc $ 1,627 $ 1,543 $ 1,565 $ 1,575 $ 1,516 Add: noncontrolling interests 38 33 36 37 $ 36 Add: interest expense - net 65 71 40 52 $ 37 Less: tax benefit on interest expense - net * (16) (16) (12)
Slide 27: Non-GAAP Measures, continued
Non-GAAP Measures, continued LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (Millions of dollars) (UNAUDITED) (Millions of dollars) 2024 2023 Q1 Q4 Q3 Q2 Q1 Reported capital $ 55,700 $ 55,804 $ 54,347 $ 55,381 $ 55,151 Total equity and redeemable noncontrolling interests $
Slide 28: Investor Relations
Investor Relations For further information, please contact: Phone: +1-203-837-2210 Email: investor.relations@linde.com Internet: www.linde.com/en/investors