Slide 1: First Nine Months 2004 Conference Call
Linde Group First Nine Months 2004 Conference Call November 11, 2004 Dr. Peter Diesch, CFO
Slide 2: Key Facts
Linde Group Key Facts • Significant increase in sales and EBITA • EPS of €1.28 (2003: €0.63), excl. Goodwill €2.11 (2003: €1.40) • Outlook for FY 2004 unchanged: Slight growth in sales and EBITA before special items, excl. Refrigeration • Sale of Refrigeration completed October 1, 2004 First Nine Mo
Slide 3: Group Income Statement
Linde Group Group Income Statement • Sales up 8.8% to €6,903 million, excl. currency +10.5% (2003: €6,345 million) • EBITA before special items up 14.7% to €493 million, excl. currency +17.0% (2003: €430 m) In € million Q3 04 ∆ 9M 04 ∆ Sales 2,465 13.2% 6,903 8.8% Sales (excl. currency) 14.2% 10.5%
Slide 4: Group Key Financials
Linde Group Group Key Financials • Higher Capex • Increased interest coverage ratio • Significantly improved gearing In € million 9M 03 9M 04 Operating cash flow 956 737 Capex (excl. financial assets) 566 793 Net interest -97 -97 EBITDA / Net interest 10.2 10.9% Net debt* 2,912 2,875 Gearing ** 74.1
Slide 5: Gas & Engineering
Linde Group Gas & Engineering
Slide 6: Linde Gas & Engineering
Linde Linde GasGroup & Engineering • Sales up 6.8% to €3,876 million, excl. currency plus 9.6% (2003: €3,629 m) • EBITA before special items increased by 8.7% to €511 million (2003: €470 m) In € million Q3 04 ∆ 9M 04 ∆ Sales 1,377 13.9% 3,876 6.8% Sales (excl. currency) 16.2% 9.6% EBITDA 290 3.9% 82
Slide 7: Linde Gas
Linde Linde GasGroup • Sales up 2.4% to €2,958 million, excl. currency plus 5.4% (2003: €2,888 m) • EBITA before special items +4.7% to €466 million, excl. currency +7.1% (2003: €445 m) In € million Q3 04 ∆ 9M 04 ∆ Sales 1,014 4.6% 2,958 2.4% Sales (excl. currency) 6.7% 5.4% EBITDA 267 0.8% 770 1.4%
Slide 8: Regional Sales (9M/2004)
Linde Linde GasGroup Regional Sales (9M/2004) • Stable growth in Europe, driven by Eastern Europe • Still double-digit currency impact on North American sales • Highest growth rates in South America and Asia Pacific In € million 9M 03 9M 04 ∆* ∆* excl. currency Germany 649 654 0.8% 0.8% Europe excl.
Slide 9: Product Segment Sales (9M/2004)
Linde Linde GasGroup Product Segment Sales (9M/2004) • Highest growth rates in the bulk business • Stable trend in the cylinder business • Healthcare again achieves double-digit growth rate, excl. currency In € million 9M 03 9M 04 ∆* ∆* excl. currency Bulk 783 827 27% 5.6% 8.0% 26% Cylinder 1,169 1,
Slide 10: Linde Gas Highlights and Outlook – Full Year 2004
Linde Linde GasGroup Highlights • Large on-site contract (Capex: $70 m) awarded in Chile further strengthens good market position in South America • Latest aquisitions (Singapur, Thailand, Malaysia) create solid basis for sustainable growth in Asia • Restructuring program Fit-for-Future is still on
Slide 11: Engineering
Linde Linde Group Engineering • Sales increased by 30.5% to €1,035 million (2003: €793 million) • EBITA improved by 80% to €45 million (2003: €25 million) In € million Q3 04 ∆ 9M 04 ∆ Sales 408 58.8% 1,035 30.5% EBITDA 23 64.3% 56 40% Margin 56.4% 54.1% EBITA 20 122.2% 45 80% Margin 4.9% 4.3% EBTA 2
Slide 12: Engineering Highlights and Outlook – Full Year 2004
Linde Group Linde Engineering Highlights • Order intake of €1.230 billion on last year‘s high level (2003: €1.215 billion) • Order backlog remains higher than €2 billion • Good project situation ahead in all product segments Outlook – Full Year 2004 • Increase in sales and EBITA First Nine Months 20
Slide 13: Material Handling
Linde Group Material Handling
Slide 14: Material Handling
Linde Group Material Handling • Sales increased by 12.6% to €2,413 million (2003: €2,143 million) • EBITA before special items up 23.6% to €110 million (2003: €89 million) In € million Q3 04 ∆ 9M 04 ∆ Sales 822 11.4% 2,413 12.6% EBITDA 119 11.2% 336 10.5% Margin 14.5% 13.9% EBITA before special item
Slide 15: Material Handling Highlights and Outlook – Full Year 2004
Linde Group Material Handling Highlights • Strong growing world market, leaders are America and Asia • Double-digit growth in Europe, thereby overproportionate growth in Eastern Europe • Slow down in market growth anticipated in Q4 • Strong competition & rising raw material costs continue to burden
Slide 16: Refrigeration
Linde Group Refrigeration
Slide 17: Refrigeration
Linde Group Refrigeration • Sales up by 4.9% to €578 million (2003: €551 million) • EBITA of minus €4 million (2003: minus €8 million) In € million Q3 04 ∆ 9M 04 ∆ Sales 246 10.3% 578 4.9% EBITDA 29 38.1% 12 33.3% EBITA 24 60% -4 50% EBTA 24 60% -5 44.4% First Nine Months 2004 17
Slide 18: Investor Relations Contacts
Linde Group Investor Relations Contacts Thomas Eisenlohr, Head of Investor Relations Tel: +49 611 770 610 E-mail: thomas.eisenlohr@linde.de Marc Weisener Tel: +49 611 770 468 E-mail: marc.weisener@linde.de Jo Raja Tel: +49 611 770 128 E-mail: jo.raja@linde.de First Nine Months 2004 18