Slide 1: Half Year Results 2003 Conference Call
Half Year Results 2003 Conference Call Wiesbaden, August 14th, 2003 Hero Brahms, CFO 2nd quarter 2003 Analysts‘ Conference 2003 Seite 1 1
Slide 2: Key Facts
Linde Group Key Facts • Sales rose by 1.2%, ex currency plus 6.6% • EBITA (before special items) of €253 million, 9.6% below last year - 2nd quarter near last year‘s level • EBT (before special items) plus 4.5%, due to improved financial result • Material Handling: Further cost saving potential iden
Slide 3: Income Statement
Linde Group Income Statement • EBITA still well below last year, due to weak first quarter • Improved financial result leads to higher EBT In € million Per 06/02 Per 06/03 ∆ Sales 4,118 4,167 +1.2 % Sales ex currencies + 6.6 % EBITDA 673 631 - 6.2 % EBITA (before special items) 280 253 - 9.6 % EBIT
Slide 4: Gas and Engineering
Gas and Engineering 2nd quarter 2003 Analysts‘ Conference 2003 Seite 4 4 2
Slide 5: Linde Gas
Linde Gas • Minus 1.9 % in sales, plus 5.1% ex currency & natural gas price effect • Operating profit still lower than last year - currency effects and one-off costs in Brazil • 2nd quarter better than last year, EBITA plus 4.5 % in Q2 2003 In € million Per 06/02 Per 06/03 ∆ Sales 1,965 1,919 - 1.9
Slide 6: Regional Sales
Linde Gas Regional Sales • Ex currency: all regions showed positive sales development • Best performer: Asia/Pacific region in € million Per 06/02 Per 06/03 ∆ Germany 415 431 + 3.7 % Europe ex. Germany 908 925 + 1.9 % North America 456 419 - 8.1 % ex currency, ex natural gas price effect + 5.7 % Sou
Slide 7: Linde Gas – Sales
Linde Gas Linde Gas – Sales • Strong increase in On-site sales • Declining share of cylinder business • Healthcare business exhibited double-digit growth, ex currency in € million Per 06/02 Per 06/03 ∆ / ∆ ex currency Bulk 514 26% 517 26% + 0.6 % / + 8.1 % Cylinder 855 43% 777 39% - 9.1 % / - 1.5 %
Slide 8: Highlights
Linde Gas Highlights • On-site segment: - Five new Air Separation contracts won, investment vol. approx. € 180 m - LOI signed for two new hydrogen plants • Ongoing negative earnings impact of currency, higher energy costs and declining share of cylinder business 2nd quarter 2003 Analysts‘ Conference
Slide 9: Outlook
Linde Gas Outlook • Flat sales • Earnings below last year’s level 2nd quarter 2003 Analysts‘ Conference 2003 Seite 9 9
Slide 10: Linde Engineering
Linde Engineering • Strong increase in sales (+30.1%) • Operating profit declined due to weak 1st quarter - 2nd quarter flat • €10 million write-down impacts operating profit in € million Per 06/02 Per 06/03 ∆ Sales 412 536 + 30.1 % Order intake 893 727 - 18.6 % EBITDA 31 26 - 16.1 % Margin 7.5 % 4.
Slide 11: Outlook Full Year 2003
Linde Engineering Outlook Full Year 2003 • Noticeable increase in sales • Profit below last year 2nd quarter 2003 Analysts‘ Conference 2003 Seite 11 11
Slide 12: Material Handling
Material Handling 2nd quarter 2003 Analysts‘ Conference 2003 Seite 12 12
Slide 13: Material Handling
Material Handling • Sales declined by 2.6%, ex currency plus 0.6% • Operating profit close to last year‘s level In € million Per 06/02 Per 06/03 ∆ Sales 1,442 1,405 - 2.6 % Order intake 1,534 1,490 - 2.9 % EBITDA 206 197 - 4.4 % Margin 14.3 % 14.0 % EBITA 58 52 - 10.3 % Margin 4.0 % 3.7 % EBTA 37 39
Slide 14: Highlights
Material Handling Highlights • 2nd quarter did not confirm the European market recovery in Q1 • Share of Service business grew to approx. 39% • Linde 39x and STILL RX50 gain market share in their segment • TRIM. 100 on track – cost savings of €30 million by year end • Further cost savings potential
Slide 15: Outlook Full Year 2003
Material Handling Outlook Full Year 2003 • Slight increase in sales • Increase in profit 2nd quarter 2003 Analysts‘ Conference 2003 Seite 15 15
Slide 16: Refrigeration
Refrigeration 2nd quarter 2003 Analysts‘ Conference 2003 Seite 16 16
Slide 17: Refrigeration
Refrigeration • Ongoing difficult market situation • Operating profit at last year‘s level, despite sales decrease In € million Per 06/02 Per 06/03 ∆ Sales 338 328 - 3.0 % Order intake 458 442 - 3.5 % EBITDA - 14 -12 - 14.3 % Margin EBITA - 24 - 23 - 4.2 % Margin EBTA - 27 - 24 + 11.1 % 2nd quarter
Slide 18: Outlook Full Year 2003
Refrigeration Outlook Full Year 2003 • Flat sales and earnings 2nd quarter 2003 Analysts‘ Conference 2003 Seite 18 18
Slide 19: Investor Relations
Contact us Investor Relations Thomas Eisenlohr Tel.: +49 611 770 610 Fax: +49 611 770 690 thomas.eisenlohr@linde.de Marc Weisener Tel.: +49 611 770 468 Fax: +49 611 770 690 marc.weisener@linde.de 2nd quarter 2003 Analysts‘ Conference 2003 Seite 19 19