Slide 1: January – June 2009 Conference Call
January – June 2009 Conference Call Georg Denoke, CFO 3 August 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 H1 Group key figures Group sales of € 5.476 bn (-12.5%), Group operating profit of € 1.104 bn (-12.2%) Group operating profit before restructuring charges down 6.9% Reported EPS of € 1.47 (H1 08: € 2.24), adjusted EPS of € 2.06 (H1 08: € 2.72) Adjusted EPS before restructuring charges dow
Slide 4: Group, sales by Divisions
Group, sales by Divisions Group sales down 12.5%, Gases sales stabilising in Q2 in € million, H1 2008 H1 2009 as reported 6,256 Gases Division -12.5% 5,476 — Comparable* sales development of -6.7%, -3.5% incl. bolt-on acquisitions — Accentuation of year-on-year volume reductions due Gases 4,709 -7.6
Slide 5: Group, operating profit by Divisions
Group, operating profit by Divisions Group operating profit excl. restructuring charges down 6.9% in € million, H1 2008 H1 2009 as reported 1,258 -12.2% 1,104 Gases Division — Operating margin up 80 bps to 26.2% — Synergies, accelerated HPO implementation and positive pricing cushion volume effects
Slide 6: Gases Division, quarterly focus
Gases Division, quarterly focus Q2 2009 performance versus Q1 2009 and Q2 2008 Q2 09 vs Q1 09 Return to sequential growth +1.7% +8.4% +170 bps — Slight sales increase from Q1 09 2,157 2,193 592 27.0% 546 — Driven by first recovery steps in 25.3% Emerging Markets — Stabilisation of sales run rates in
Slide 7: Gases Division, operating segments Western Europe
Gases Division, operating segments Western Europe in € million, as reported Sales Operating Profit Operating Margin -11.2% 575 -12.0% 2,083 1,849 506 27.6% -20 bps 27.4% H1 2008 H1 2009 H1 2008 H1 2009 H1 2008 H1 2009 H1 highlights — Comparable sales development of -6.0%, continued currency effect f
Slide 8: Gases Division, operating segments Americas
Gases Division, operating segments Americas in € million, as reported Sales Operating Profit Operating Margin 1,082 -8.2% 206 +1.9% 210 +210 bps 21.1% 993 19.0% H1 2008 H1 2009 H1 2008 H1 2009 H1 2008 H1 2009 H1 highlights — Comparable sales development of -8.4% — Stabilisation but no recovery of sa
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 945 -7.2% 877 269 -1.1% 266 28.5% +180 bps 30.3% H1 2008 H1 2009 H1 2008 H1 2009 H1 2008 H1 2009 H1 highlights — Comparable sales development of -7.4% — First indications of a s
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 632 +5.4% 666 +8.3% 156 144 22.8% +60 bps 23.4% H1 2008 H1 2009 H1 2008 H1 2009 H1 2008 H1 2009 H1 highlights — Comparable sales development of -4.6% — South Pacific remains ro
Slide 11: Gases Division, emerging market set-up
Gases Division, emerging market set-up Already more than 30% of sales in emerging markets Total Gases Sales Emerging Market Sales by region (excl. JVs and Embedded Finance Lease) Non Emerging E. Europe /M. East Markets Emerging Markets Asia H1 09: <70% >30% € 4.35 bn S. America Africa 11
Slide 12: Gases Division, sales bridge
Gases Division, sales bridge Sales -6.7% on comparable basis in € million +3.3% -1.4% -2.8% 4,709 -6.7% 4,350 H1 2008 Consolidation Currency Natural Gas Price/Volume H1 2009 12
Slide 13: Gases Division, sales by product areas
Gases Division, sales by product areas (consolidated) Sequential improvement in Q2 2009 in € m 4,664* -6.7% 4,350 +1.7% 2,193 481 2,157 +5.6% 508 Healthcare 251 +2.4% 257 1,046 -5.4% 989 Tonnage 499 -1.8% 490 1,181 -9.1% 1,074 Bulk 536 +0.4% 538 1,956 -9.0% 1,779 908 Cylinder 871 +4.2% H1 2008 H1 20
Slide 14: Gases Division, project pipeline
Gases Division, project pipeline Stable customer committment — Total project number unchanged: 64 start-ups by 2011 (incl. JVs) — Overall still lower activity in new contract signings, but the structural growth potential remains strong, especially in Emerging Markets and energy applications 12 13 33
Slide 15: Gases Division, Joint Ventures
Gases Division, Joint Ventures Consolidation effect, but strong operational performance 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 302 consolidation of former start-ups, esp. i
Slide 16: Engineering Division
Engineering Division Backlog above € 4 bn, new olefin order in Abu Dhabi Others — Order intake close to strong previous year level: USD 1.075 bn HyCo 6% Nat. 6% order for new ethane cracker in Abu Dhabi from Borouge JV Gas 7% — Order backlog of € 4.381 bn (year-end 2008: € 4.436 bn) Order ASU 9% int
Slide 17: Group, cash flow statement
Group, cash flow statement Continued strong cash flow generation in € million H1 08 H1 09 Operating Profit 1,258 1,104 Change in Working Capital -182 10 Other changes -260 -273 Operating Cash Flow 816 841 Investment in tangibles/ intangibles -569 -543 Acquisitions -54 -69 Other 199 76 Investment Cas
Slide 18: Group, financial position
Group, financial position Well spread maturity profile with strong liquidity reserve Net debt, in € bn Cash position & credit facility cover all financial maturities Net debt/EBITDA of 2.5x in FY 2008 within target range of 2-3x until end of 2010 € 2 bn credit facility available until March 2011:: 1
Slide 19: Outlook 2009
Outlook 2009 Economic background: — Moderate recovery expected in H2, based on stabilisation at the end of H1 — 2009 global economic output to be significantly below 2008 Group — Further recovery in the second half-year compared to the first half as the economic improvement takes hold — Based on the
Slide 20: Appendix
Appendix ee? & THE LINDE GROUP 20
Slide 21: Group Financial Highlights
Group Financial Highlights in € million H1 08 H1 09 ∆ in % Sales 6,256 5,476 -12.5 Operating profit 1,258 1,104 -12.2 Margin 20,1 20,2 +10 bp Operating profit excluding restructuring charges 1,258 1,171 -6.9 Margin 20,1 21,4 +130 bp EBIT before special items and PPA depreciation 842 669 -20.5 Specia
Slide 22: Group Financial Highlights
Group Financial Highlights in € million H1 08 H1 09 ∆ in % Net income - Part of shareholders Linde AG 375 248 -33.9 + depreciation/amortisation from purchase price allocation +185 146 + special items -59 - - net of tax -46 -47 Adjusted Net Income 455 347 -23.7 - Restructuring costs - +67 + net of ta
Slide 23: Q2 performance, Gases Division
Q2 performance, Gases Division Q2 09 vs. Q1 09 (in € million) Western Europe Americas -2.2% +190 bps -1.8% +70 bps 935 914 28.3% 501 492 21.5% 26.4% 20.8% Q1/09 Q2/09 Q1/09 Q2/09 Q1/09 Q2/09 Q1/09 Q2/09 Sales Operating margin Sales Operating margin Asia & Eastern Europe South Pacific & Africa +4.9%
Slide 24: Accounting considerations
Accounting considerations Impact of PPA and EFL Purchase Price Allocation (PPA) IFRIC 4: Embedded Finance Lease (EFL) Impact in H1 2009: € 146 m (H1 08: € 185 m) Impact* in H1 2009: € -63 m (H1 08: € -64 m) Expected impact FY 2009: €275-325 m Expected impact* FY 2009: €-118 m *(on Sales and EBITDA)
Slide 25: 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 26: Thank you for your attention.
Thank you for your attention.