Slide 1: Investor Teleconference Presentation Second Quarter 2023
Linde plc Investor Teleconference Presentation Second Quarter 2023 July 27, 2023 Making our world more productive
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) 2Q 2023 End Market & YoY Trend Growth Growth Consumer Related End Markets (More Resilient) Healthcare 17% +7% -- Food & Beverage 9% +10% +6% Electronics 9% +3% -2% Industrial Related End Markets (More Cyclical) Manufacturing 22% +9% +
Slide 4: Second-Quarter Adjusted Results
Second-Quarter Adjusted Results (1) ($MM) 2Q 2023 1Q 2023 Var 2Q 2022 Var YOY SEQ. Sales Growth - 3% -- Sales $8,204 $8,193 -- $8,457 -3% Volume - 1% + 2% Operating Profit $2,286 $2,206 4% $1,988 15% Price / Mix + 7% + 1% % of Sales 27.9% 26.9% 23.5% Cost pass-thru - 4% - 2% Currency - 1% -- Income
Slide 5: 2Q Capital Management
2Q Capital Management Operating Cash Flow (OCF) Trend ($B) Re-invested $2.5B in the business 2022 2023 Stable OCF despite macro volatility Strong balance sheet YTD Capital Allocation Business Return to Investments Shareholders $2.5B $2.9B Base capex(1) $1.2B Net share OCF $2.0 $2.1 $2.6 $2.1 $
Slide 6: 2023 Guidance
2023 Guidance Full-Year 2023 3rd Quarter 2023 Adjusted EPS in the range of $3.48 to $3.58 (1) Adjusted EPS in the range of $13.80 to $14.00 (1) • +12% to +14% vs. 2022 • +12% to +15% vs. 2022 • Assumes no currency impact • Estimated YoY currency tailwind +2% • Increased upper end from 2Q perform
Slide 7: Appendix
Appendix 7
Slide 8: Americas
Americas ($MM) 2Q 2023 1Q 2023 Var 2Q 2022 Var YOY SEQ. Sales Growth + 1% -- Sales $3,541 $3,551 -- $3,518 1% Volume - 1% + 1% Operating Profit $1,070 $1,025 4% $910 18% Price / Mix + 6% + 1% % of Sales 30.2% 28.9% 25.9% Cost pass-thru - 7% - 3% Currency -- + 1% Acq / Div + 3% -- Sales by End Market
Slide 9: APAC
APAC ($MM) 2Q 2023 1Q 2023 Var 2Q 2022 Var YOY SEQ. Sales Growth + 2% + 5% Sales $1,683 $1,598 5% $1,651 2% Volume + 3% + 7% Operating Profit $472 $423 12% $426 11% Price / Mix + 5% + 1% % of Sales 28.0% 26.5% 25.8% Cost pass-thru - 1% - 1% Currency - 5% - 2% Acq / Div -- -- Sales by End Market Ex
Slide 10: EMEA
EMEA ($MM) 2Q 2023 1Q 2023 Var 2Q 2022 Var Sales $2,160 $2,177 -1% $2,144 1% Operating Profit $630 $607 4% $536 18% % of Sales 29.2% 27.9% 25.0% Sales by End Market Ex. cost pass-thru, YoY margins up 350 bps Continued strong pricing plus productivity initiatives YoY and seq. volume decline led
Slide 11: Engineering
Engineering ($MM) 2Q 2023 1Q 2023 Var 2Q 2022 Var YoY higher margins driven by: ‒ Favorable impact from wind down of Sales $495 $540 -8% $644 -23% sanctioned contracts Operating Profit $107 $149 -28% $105 2% ‒ Better cost absorption % of Sales 21.6% 27.6% 16.3% Benefits from productivity and cos
Slide 12: Global Other
Global Other ($MM) 2Q 2023 1Q 2023 Var 2Q 2022 Var YoY sales and operating profit decline due to divestiture of GIST in 3Q 2022 Sales $325 $327 -1% $500 -35% ‒ GIST annual sales ~$0.8B, OP Operating Profit $7 $2 250% $11 -36% margins mid-single digits % of Sales 2.2% 0.6% 2.2% Coatings and Globa
Slide 13: High-Quality Project Backlog $7.8B
High-Quality Project Backlog $7.8B Geography SOP Backlog (1) SOG Backlog (2) $3.4B $4.4B End Market Contractual growth Contractual growth Secure cash flow Secure cash flow Double-digit IRR Double-digit IRR High-quality customers High-quality customers Clean Energy Primarily enginee
Slide 14: ESG Performance vs. 2028 Goals
ESG Performance vs. 2028 Goals Target: 35% Reduction in GHG Emissions Intensity 2018-2028 (1) Decarbonizing our Future Linde Signs Landmark Renewable Energy Agreements in Brazil ESG News and Recognitions FTSE4Good Index Includes Linde for Eighth Consecutive Year GHG Emissions Intensity(1) (Targe
Slide 15: 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 16: Strategy
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 2023 2022 Year to Date Year to Date Q2 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) June 30, June 30, Adjusted Other Income (Expense) - net Reported Other Income (Expense) - net $ (32) $ (27) (5) $ (24) $ (4) $ (34) $ (36) $ 12 Add: Purchase accounting imp
Slide 20: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 Year to Date Year to Date Q2 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) June 30, June 30, Adjusted Effective Tax Rate (a) Reported income before income taxes and equity investments $ 3,945 $ 2,004 1,941 2,181 $ 1,714 $ 1,648 $ 646 $ 1,535 Add:
Slide 21: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 Year to Date Year to Date Q2 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) June 30, June 30, Adjusted Net Income - Linde plc (b) Reported net income $ 3,091 $ 1,575 1,516 $ 1,546 $ 1,328 $ 1,273 $ 372 $ 1,174 Add: Pension settlement charge — — $ —
Slide 22: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 Year to Date Year to Date Q2 Q1 Q4 Q3 Q2 Q1 (Millions of dollars, except per share data) June 30, June 30, Adjusted EBITDA and % of Sales Net Income - Linde plc $ 3,091 $ 1,575 $ 1,516 $ 1,546 $ 1,328 $ 1,273 $ 372 $ 1,174 Add: Noncontrolling interests 73 37 36
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) 2023 2022 Q2 Q1 Q4 Q3 Q2 Q1 Available Operating Cash Flow (AOCF) and Base Capex - Available operating cash flow is a measure used by investors, financial analysts
Slide 25: Non-GAAP Measures, continued
Non-GAAP Measures, continued LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (Millions of dollars) (UNAUDITED) 2023 2022 (Millions of dollars) Q2 Q1 Q4 Q3 Q2 Q1 Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evalua
Slide 26: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 (Millions of dollars) Q2 Q1 Q4 Q3 Q2 Q1 Reported net income - Linde plc $ 1,575 $ 1,516 $ 1,328 $ 1,273 $ 372 $ 1,174 Add: noncontrolling interests 37 $ 36 33 27 38 36 Add: interest expense - net 52 $ 37 31 18 5 9 Less: tax benefit on interest expense - net * (
Slide 27: Non-GAAP Measures, continued
Non-GAAP Measures, continued 2023 2022 (Millions of dollars) Q2 Q1 Q4 Q3 Q2 Q1 Reported capital $ 55,381 $ 55,151 $ 53,865 $ 50,521 $ 53,428 $ 56,382 Total equity and redeemable noncontrolling interests $ 41,248 $ 41,336 $ 41,387 $ 38,939 $ 41,040 $ 44,390 Add: Adjusted net debt 14,123 13,802 12,456
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 28