Slide 1: Why Linde
Making our world more productive Making our world more productive Why Linde
Slide 2: Outline
Why Linde Outline 1. Introduction to Industrial Gases 2. Introduction to Linde 2.1 Overview 2.2 Gases 2.3 Engineering 3. Strategy 4. Capital Allocation Policy 5. Through an ESG Lens 6. Summary 7. Appendix 2
Slide 3: Introduction to Industrial Gases
Introduction to Industrial Gases 1 3
Slide 4: Industrial Gases – Primary Products
Industrial Gases – Primary Products — Atmospheric Gases N2 Nitrogen Rare gases: Ar Oxygen Krypton Neon O2 Argon Xenon Kr Ne Xe — Process Gases H2 Hydrogen Carbon monoxide CO2 Carbon dioxide Acetylene He Helium Propane CO C2H2 C3H8 4
Slide 5: Industrial Gases – Introduction
Industrial Gases – Introduction What Are Industrial Gases? How Are They Produced? — Most common industrial gases are oxygen, — Atmospheric Gases: produced when air nitrogen, hydrogen, carbon dioxide and is purified, compressed, cooled, distilled argon and condensed — Atmosphere consists of 78% nitro
Slide 6: Industrial Gases – Distribution Modes
Industrial Gases – Distribution Modes CUSTOMER TYPE Pipeline On-site High Low Merchant Volume & Truck # of Capital Transactions Intensity Air Separation Unit Cylinder Truck Packaged Filling Plant Low High 6
Slide 7: Industrial Gases – Product Overview
Industrial Gases – Product Overview Products Primary Sources Feedstock Distribution Modes Oxygen Packaged Merchant On-site Local Nitrogen Air Separation Air + Power Argon SMR, ATR, POX1 Hydrocarbons/Power National Hydrogen By-product and Electrolysis or Crude Hydrogen Carbon Crude Carbon By-product
Slide 8: Linde Overview
Linde Overview A leader in an attractive industry 2.1 with products & services critical to customers 8
Slide 9: Vision, Mission & Value
Vision, Mission & Value Our Vision To be the best performing global industrial gases and engineering company, where our people deliver innovative and sustainable solutions for our customers in a connected world. Our Mission Making our world more productive. Our Values Integrity Inclusion Safety Acco
Slide 10: Linde Overview: Global Company With High-quality Results
Linde Overview 2022 Key Facts 2022 Revenue by Segment Net Sales ($B) 33 Other1 Engineering Gases 5% EBIT ($B) 8 8% EBIT Margin 23.7% Americas 42% 20% APAC OCF ($B) 9 EMEA ROC 22.9% 25% FTEs (‘000) 65 Global Company With High-quality Results Source: 2022 Public filing, non-GAAP figures. 1. Includes L
Slide 11: Linde Gases
Linde Gases Resilience and Growth 2.2 11
Slide 12: Historical Performance: Consistently Outperforming Peers and the Market
Historical Performance Results 1993 – 2022 CAGR Linde1 Key Competitors2 Sales 9% 6% Linde CAGR 11% EPS 11% 8% Dividend 13% 9% S&P 500 CAGR 8% OCF 11% 7% 1993 Index EPS 2022 (1993 = 100) = Economic recession Consistently Outperforming Peers and the Market 1. Pre-2019 (merger) data uses predecessor co
Slide 13: Integrated Supply Model
Integrated Supply Model Linde Worldwide Contracts Types On-site: 15 – 20 years — Take-or-pay, guaranteed return — Cost pass-through Merchant: 3 – 7 years — Creates network density — Contracts & services — Scale, efficient production, distribution & low-cost energy Packaged: 1 – 3 years — Creates net
Slide 14: Sales by End Markets
Sales by End Markets Consumer Healthcare Food & Beverage Electronics Related End Markets 16% 10% 9% More Hospitals Beverage Companies Semiconductor Fabricators Medical Offices and Clinics Food & Frozen Food Producers Solar Panel Manufacturers Resilient Homecare Customers Agricultural Produce & Fish
Slide 15: Gases Geographic Segments
Gases Geographic Segments 24% 29% 29% 24% AMERICAS 42% EMEA 41% APAC 38% Sales: $13.9B 27% Sales: $8.4B 30% Sales: $6.5B 34% EBIT: $3.7B EBIT: $2.0B EBIT: $1.7B OPM: 27% OPM: 24% OPM: 26% North America Europe West Greater China ‒ Linde Gases US ‒ Canada Europe East (incl ME) South Pacific ‒ Linde Ga
Slide 16: Defensive Business Model
Defensive Business Model… …Provides Significant Downside Protection Defensive Cyclical Defensive sales: 25% 7% 19% — Resilient end-markets 16% 14% and global footprint 10% 9% 5% 16% diversifies risk 18% 7% By End Market 9% 6% 3% 1% — Long-term supply Health- Electronics Food & Chemicals Metals Manu-
Slide 17: Linde Engineering
Linde Engineering World-Class 2.3 Engineering capabilities to execute large projects 17
Slide 18: Engineering Overview
Engineering Overview Business Model Technology Execution People — Key enabler for onsite — Holistic blue and green — World-class execution — Acknowledged experts projects (sale of gas) hydrogen offerings capabilities around the in core disciplines — T-EPC, selective E, E&P, EPC — Best-in-class air g
Slide 19: Strategy
Strategy Delivers on average 10%+ EPS growth plus clean energy 3 19
Slide 20: Linde Strategy
Linde Strategy Underpinned by Safety, Compliance, People and Sustainability Our Strategy… … And Its Execution — Pricing OPTIMIZE — Productivity Base — Density — Innovation CAPITALIZE — Secular Growth Growth — Backlog — Technology Advantage PRIORITIZE — Partnerships Clean Energy — Opportunity Pipelin
Slide 21: Capitalize Growth: High-Quality Project Backlog
Capitalize Growth High-Quality Project Backlog $9B+1 SOP Backlog2 SOG Backlog3 Geography EMEA 3% $3.5B $5.7B APAC Americas 44% 53% — Contractual growth — Contractual growth — Secure cash flow — Secure cash flow End Market — Double-digit IRR — Double-digit IRR Manufacturing 10% — High-quality custome
Slide 22: Clean Energy Transition
Clean Energy Transition Today’s Energy Market Clean Energy Market >80% is Fossil Fuel Blue Hydrogen Green Hydrogen Carbon Solutions based (coal, oil & (incl. ammonia & (incl. ammonia & natural gas) methanol) methanol) CO2 CO2 CO2 Grey H2 production with Water electrolysis CO2 capture from … with C02
Slide 23: Full Suite of Technologies to Support Energy Transition
Full Suite of Technologies to Support Energy Transition 2022 SMR, ATR, POX + Carbon Capture technologies Production Electrolysis – PEM, AEL SOEC Green Hydrogen Blue / Green Ammonia Synthesis Ammonia Cracking Blue and Distribution H2 Liquefaction Scale-Up 50 tpd 200 tpd H2 Transportation incl. Carrie
Slide 24: Capabilities Throughout the Value Chain
Capabilities Throughout the Value Chain Production Distribution, Storage & Service Markets Industry Underground — Chemicals industry SMR, ATR, POX… Pipelines storage — Fertilizer — Steel Power — Power generation …with CCS Liquefaction Tanks — NH3 co-firing Mobility — Aviation — Buses Electrolysis Tr
Slide 25: Linde's Clean Energy Opportunity
Linde’s Clean Energy Opportunity Well Positioned to Invest >$50B Globally Decarbonize Linde Decarbonize Customer New Markets — Decarbonize current Linde — Decarbonize customer processes — Enable new markets e.g., clean Strategy assets e.g., SMRs, ATRs, POX e.g., Petrochemicals, Refining, ammonia, su
Slide 26: Capital Allocation Policy
Capital Allocation Policy 4 Good stewards of capital – no surprises 26
Slide 27: Capital Allocation Policy
Capital Allocation Policy Risk / Reward Maintain A / A2 Credit Rating Mandate Key Drivers Annually increase dividend High Risk — Double digit returns Unlevered, post tax, low double digit returns Low Risk — Reputable customers % Return — Competitive customer Priority Invest in the Business assets —
Slide 28: Through an ESG Lens
Through an ESG Lens We help our 5 customers avoid more than 2x our own GHG emissions 28
Slide 29: Environmental: Avoided Emissions
Environmental 90 million Total MT CO2e benefits ~2.3x enabled by Linde applications 51.2 million Avoided MT CO2e 14 million MT CO2e avoided from coatings for thermal barriers for industrial gas turbine and jet engine efficiency Linde Applications Enable More Than 2x Carbon Productivity 63 million MT
Slide 30: Environmental: Road to Climate Neutrality
Environmental Road to Climate Neutrality* 2050 Climate Neutral3 2035 2028 35% Reduction of Absolute GHG Emissions 35% Reduction of Status: Reduction Underway GHG Intensity1 Status: Roadmap in Place Status: Ahead of Goal Activities include: — Developing several CCS² Activities include: projects Achie
Slide 31: Sustainable Development
Sustainable Development Making Our World More Productive, Sustainably Recognitions & Awards Dow Jones Sustainability World Index Science-Based Target Approval — Included in DJSI World for 20 consecutive years — Linde's 2035 climate change goal validated by SBTi S&P Global Corporate Sustainability As
Slide 32: Social Responsibility
Social Responsibility 29% of 2022 Charitable Awarded >$1.75 million in 12 Employee Resource 60,000 Total volunteer Groups with >1,000 giving funded scholarships and university hours as part of 2022 community Diversity-related initiatives programs in 2022 engagement efforts members First all-women op
Slide 33: Governance
Governance — Annual Election of Directors — Clawback policy & prohibition on hedging or pledging Linde stock — Separate Chairman and CEO roles & a lead Independent Director — Dedicated Board committees focused on: — Board diversity: Environment – Sustainability Board is 40% diverse by Committee
Slide 34: Summary
Summary The best performing global industrial gases and engineering 6 company 34
Slide 35: Linde Because…
Linde Because… — Leader in an attractive industry with products & services critical to customers — Unrivalled network density across all supply modes — Enabling energy transition, ~$50B investment opportunity pipeline globally — World-class capabilities with proven track record of execution — Provid
Slide 36: Appendix
Appendix Making our world more productive
Slide 37: Historical Performance
Historical Performance* Sales ($B) EPS ($) 35 14 30 12 25 10 20 +9% 8 +11% 15 6 10 4 5 2 0 0 1993 1997 2002 2007 2012 2017 2022 1993 1997 2002 2007 2012 2017 2022 Operating Cash Flow ($B) Dividend ($) 10 5 8 4 +11% 6 3 +13% 4 2 2 1 0 0 1993 1997 2002 2007 2012 2017 2022 1993 1997 2002 2007 2012 2017
Slide 38: 2022 Financial Comparison
2022 Financial Comparison Revenue Adj. EPS OCF Adj. EBIT (FY 2022) Adj. ROC* (FY 2022) $B YoY% $B % % 33 15% 9 24% 23% Competitor 31 7% 6 16% 10% 1 Competitor 13 12% 3 20% 13% 2 Competitor 3 9 -2% 1 10% 5% *Based on 2022 public filings, non-GAAP figures. Adjusted / recurring ROC after tax. Compariso
Slide 39: Thank you
Making our world more productive Thank you