Linde Plc · NASDAQ:LIN
Linde — The Linde Group — Unicredit German Investment Seminar 2007
22 slides from Linde's conference presentation, Sep 25, 2007
Slide 1: The Linde Group. Growing Together.
The Linde Group. Growing Together. Unicredit German Investment Seminar Munich, September 25-27, 2007 Georg Denoke, CFO
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about Linde AG (“Linde”), The BOC Group plc (“BOC”) and their respective subsidiaries and businesses. These include, without limitation, those concerning the strategy of an integrated group, future growth potential of markets and produ
Slide 3: Contents
Contents 1 First Half Year 2007 2 Status of Integration 3 Business Synergies 4 Outlook 3
Slide 4: Highlights First Half Year 2007
Highlights First Half Year 2007 Operating performance on solid growth trend — Group sales rise 12.7% to € 5,888 bn in the first half year, Q2 sales up 16.1% to € 3,028 bn — H1 operating profit up by 14.7% to € 1,158 bn, 19.5% increase in Q2 to € 589 mn — Half-year reported EPS increases to € 3.66 (2
Slide 5: Group - Segment overview: Sales and operating profit by segment
Group - Segment overview Sales and operating profit by segment Sales 2007, in € million Q2 ∆ yoy H1 ∆ yoy Division Gases 2,304 9.9% 4,553 8.1% Division Engineering 636 43.6% 1,134 43.2% Division Corporate / Cons. 88 -17.8% 201 -8.2% Group 3,028 16.1% 5,888 12.7% Operating profit 2007, in € million*
Slide 6: Group – Cash Flow Statement
Group – Cash Flow Statement Key elements (in € million) Q1/2007 Q2/2007 H1 2007 H1 2006 Operating profit before unusual items 569 589 1,158 863 Change in Working Capital -79 70 -9 12 Funds from operations 490 659 1,149 875 P&L Taxes as reported -201 -94 -295 -150 Accrued taxes on disposals 160 160 P
Slide 7: Contents
Contents 1 First Half Year 2007 2 Status of Integration 3 Business Synergies 4 Outlook 7
Slide 8: Disposal process
Disposal process Proceeds Closing (Enterprise Value, €m) Q4/06 KION Group 4,000 28/12/06 9 Q1/07 Stake in Indura 150 31/01/07 9 Linde Australia 300 01/02/07 9 Stake in JAG 695 01/03/07 9 8 Linde US ASUs 386 09/03/07 9 INO Therapeutics 380 * 27/03/07 9 Q2/07 Asian Jvs with AL 275 27/04/07 9 BOC Polan
Slide 9: Significant deleveraging achieved
Significant deleveraging achieved Year-end net debt target remains €7,2-7,5 billion € million 13,677 Debt rating upgrade by one notch 6,977 from S&P and Moody´s in March / April 2007 (S&P: BBB; Moody’s: Baa1) 1,505 2005 Acquisition H1 2007 of BOC 9
Slide 10: Synergy program: ramp-up fully on track
Synergy program: ramp-up fully on track € 250 m cost savings to be fully effective in 2009 End of 2008: € 250 m € million 30% 2007 100 15% Supply 20% Procurement 25% 65% G&A 45% 0 End 2006 Q1 Q2 Q3 Q4 — G&A: reduction of overhead in central functions and in regions with overlap — Procurement: price
Slide 11: Continuous improvement culture
Continuous improvement culture GAP programme: Synergies — Strategic programme for •Integration related •Efficiency related future development of the Linde •EUR 250 m savings •Further growth company — Profitable growth and GAP efficiency improvement — Roll-out of experience from all programmes across
Slide 12: Contents
Contents 1 First Half Year 2007 2 Status of Integration 3 Business Synergies 4 Outlook 12
Slide 13: Gases Division - A truly global player
Gases Division - A truly global player # 1 or 2 position in 55 countries Present in >70 countries representing >90% of global GDP Market Leader #2 Player Others 13
Slide 14: Gases Division Tonnage – pipeline of upcoming and recent start-ups
Gases Division Tonnage – pipeline of upcoming and recent start-ups BP/Sunoco USA Wacker/OMV Borsodchem Germany Hungary Valero Maksi Group SeverCorr USA Russia Bayer USA Corus TISCO PR China Netherlands PR China Chevron / Holly Total Elektrostal USA Germany voestalpine Ukraine Ma Steel Shell Austria
Slide 15: Engineering Division: Leading market position in all segments
Engineering Division Leading market position in all segments Air Separation Plants Hydrogen and Synthesis Gas Plants Top 1 Top 2 Products: Products: — Oxygen — H2/CO/Syngas — Nitrogen — Ammonia — Rare gases — Gas removal — Gas purification Main competitors: Main competitors: Air Liquide, Air Product
Slide 16: Engineering Division – Good presence in emerging markets (China)
Engineering Division – Good presence in emerging markets offers competitive advantage for the Gases Division (i. e. China) [147 plants] Heilongjiang Jilin Liaoning Xinjiang Beijing Dalian Ningxia Tianjin Shandong Shanxi Jiangsu Gansu Shaanxi Henan Anhui Shanghai Taipei Hubei Taichung Sichuan Zhejian
Slide 17: Engineering Division – Good presence in emerging markets (South-East Asia)
Engineering Division – Good presence in emerging markets offers competitive advantage for the Gases Division (i. e. South-East Asia) [82 plants] Myanmar Hanoi Laos Hainan Yangon Thailand Sepon Bangkok Manila Cambodia Vietnam Philippines Sabah Brunei Malaysia Sarawak Singapor Sulawesi Borneo Sumatra
Slide 18: Entering new markets by joining gas and engineering forces
Entering new markets by joining gas and engineering forces (i. e. Lyse Gas, Norway) Feed Gas LNG Gas Sales Natural Gas LNG LNG Transport by Liquefaction Storage and Satellite Trailer and Unloading Stations Ship – The Engineering Division will deliver a LNG plant for Lyse Gas AS in Norway (order volu
Slide 19: Contents
Contents 1 First Half Year 2007 2 Status of Integration 3 Business Synergies 4 Outlook 19
Slide 20: Outlook confirmed
Outlook confirmed — Sales increase above market growth Gases Division — Overproportionate increase of operating profit — Average annual capex / sales ratio of 13% — Further significant increase of sales and operating profit based Engineering Division on high order backlog and positive market environ
Slide 21: The Linde Group is a global industry leader
The Linde Group is a global industry leader Strong set-up for future value creation Pure play on Gases & Engineering Both divisions hold leading positions in attractive product segments Integrated offer provides us with a competitive advantage Truly global footprint Worldwide presence with strong lo
Slide 22: Thank you for your attention.
Thank you for your attention.
The Linde Group — Unicredit German Investment Seminar 2007 on 6ix