Slide 1: January - June 2005 Conference Call
Linde Group January - June 2005 Conference Call August 4, 2005 Dr Peter Diesch, CFO
Slide 2: Contents
Linde Group Contents 04 | Linde Group 09 | Linde Gas & Engineering 11 | Linde Gas 19 | Linde Engineering 22 | Material Handling 2
Slide 3: Disclaimer
Linde Group Disclaimer This investor presentation has been prepared independently by Linde AG (“Linde”). The presentation contains statements which address such key issues as Linde’s growth strategy, future financial results, market positions, and product development. Such statements should be caref
Slide 4: Business trends based on adjusted prior year figures
Linde Group The business trends described below are based on adjusted prior year figures which exclude Refrigeration and the amortization of goodwill 4
Slide 5: Comparatives excluding Refrigeration and the amortization of goodwill
Linde Group Comparatives excluding Refrigeration and the amortization of goodwill In € million January – June 2004 Group income Refrigeration Amortization of Group income statement (Loss) goodwill (other statement, business comparable segments) figures EBITA 281 28 309 Amortization of goodwill -64 1
Slide 6: Key Facts
Linde Group Key Facts — Sales growth of 8.3%, supported by all business segments — Operating result up by 20.4% — EPS up 17.4% to €1.62 (2004: €1.38) — All Linde activities contribute to profitable growth path — FY2005 outlook confirmed: Increase in sales and EBITA 6
Slide 7: Income Statement
Linde Group Income Statement — Sales up 8.3% to €4,464 million — EBITA increases 20.4% to €372 million In € million Q2 05 ∆ H1 05 ∆ Sales 2,340 9.6% 4,464 8.3% EBITDA 404 16.8% 761 12.2% EBITA 207 27.0% 372 20.4% Financial result -34 - -64 - EBT 173 30.1% 308 27.8% Net income 108 25.6% 193 17.7% 7
Slide 8: Key Financials (H1 2004 not adjusted)
Linde Group Key Financials (H1 2004 not adjusted) In € million H1 04 H1 05 Operating cash flow 417 490 Capex (excl. financial assets) 451 508 Net interest -72 -67 EBITDA / Net interest 9.18 11.36 Net debt* 2,421 2,051 Gearing ** 61.5% 47.9% * Financial debt – cash & cash equivalents and securities *
Slide 9: Gas & Engineering
Linde Group Gas & Engineering
Slide 10: Linde Gas & Engineering
Linde Group Linde Gas & Engineering — Sales up 10.6% to €2,763 million — EBITA increases 14.8% to €356 million In € million Q2 05 ∆ H1 05 ∆ Sales 1,424 12.0% 2,763 10.6% EBITDA 293 12.7% 569 9.8% Margin 20.6% - 20.6% - EBITA 186 17.7% 356 14.8% Margin 13.1% - 12.9% - EBT 162 52.8% 311 45.3% 10
Slide 11: Linde Gas
Linde Group Linde Gas — Sales increase 10.6% to €2,151 million — EBITA up 13.8% to €339 million as margins advance by 0.5% to 15.8% In € million Q2 05 ∆ H1 05 ∆ Sales 1,113 13.5% 2,151 10.6% EBITDA 281 11.5% 549 9.4% Margin 25.2% - 25.5% - EBITA 175 17.4% 339 13.8% Margin 15.7% - 15.8% - EBT 148 54.
Slide 12: Linde Gas - Sales bridge H1
Linde Group Linde Gas - Sales bridge H1 +2.8% €2,151m +6.8% +0.4% +0.6% €1,944m +10.6% Sales 2004 Volume / Price FX Gas price effect New Sales 2005 Consolidation 12
Slide 13: Linde Gas – Regional Sales
Linde Group Linde Gas – Regional Sales — Double-digit growth in Eastern Europe drives European sales momentum — North America still impacted by currency effects — Asia Pacific with 36.0% underlying increase (excluding currency and consolidation) In € million H1 04 H1 05 ∆ ∆ excl. currency Germany 43
Slide 14: Linde Gas – Product Segment Sales
Linde Group Linde Gas – Product Segment Sales — On-site business growing 13.2% excluding currency and consolidation — Healthcare sales maintain double digit growth — Cylinder and bulk contribute to the growth path In € million H1 04 H1 05 ∆ ∆ excl. currency Bulk 546 595 +9.0% +8.1% Cylinder 786 816
Slide 15: Linde Gas – Major on-site start-ups 05/06
Linde Group Linde Gas – Major on-site start-ups 05/06 (€400m dedicated Capex**) Avesta Polarit * Salzgitter AG - Finland - Germany Maksi Group Sokolovska uhelna - Russia - Czech Republic Merchant Market - Russia Bayer BorsodChem Bayer - Germany - Hungary - PR China Oltchim * - Romania Cognis - Franc
Slide 16: Linde Gas - Healthcare Sales increased by 12.7%
Linde Group Linde Gas - Healthcare Sales increased by 12.7% (+8.5% excl. currency and new consolidations) In € million H1 05 H1 ∆ H1 ∆ excl. currency + consolidation Institutional 197 +6.5% +5.8% Homecare 88 +28.4% +11.2% INO 62 +12.1% +16.1% Healthcare 347 +12.7% +8.5% 16
Slide 17: Linde Gas – Efficiency improvement & Growth initiatives
Linde Group Linde Gas – Efficiency improvement & Growth initiatives — „Fit-For-Future“ program will be completed this year and lead to total improvements of €150 million — „GAP“ program (Growth and Performance) to take over in 2005 — Key growth areas are fully on track: — On-site sales show double-d
Slide 18: Linde Gas - Outlook
Linde Group Linde Gas - Outlook — Confirmed outlook for FY 2005 — Increase in sales and EBITA 18
Slide 19: Linde Engineering
Linde Group Linde Engineering — Sales increase 15.6% on last year´s strong figure — EBITA up to €33 million (2004: €18 million) In € million Q2 05 ∆ H1 05 ∆ Sales 368 9.2% 725 15.6% EBITDA 21 23.5% 41 57.7% Margin 5.7% - 5.7% - EBITA 17 30.8% 33 83.3% Margin 4.6% - 4.6% - EBT 19 26.7% 36 71.4% 19
Slide 20: Linde Engineering – Orders received up 1.7% to €902m
Linde Group Linde Engineering – Orders received up 1.7% to €902m Orders received H1/2005: Olefins Others 18% 13% Main orders in Q2: Client Location Plant Type Natural Gas Bakhtar Asaluyeh, Iran Olefin 16% Mitsubishi HI Saudi Arabia ASU Linde Gas Leuna, Germany ASU Reliance Jamnagar, India HyCo Synga
Slide 21: Linde Engineering - Outlook
Linde Group Linde Engineering - Outlook Strong order intake continued into Q3: — Polyethylene plants, Al Jubail (Saudi Arabia) for SABIC lead consortium, €500 m — ASU, Al Jubail, Mitsubishi Heavy Industries Ltd, €70 m — Ethylene plant, Al Jubail for Tasnee Petrochemicals lead consortium, €300 m Ongo
Slide 22: Material Handling
Linde Group Material Handling
Slide 23: Material Handling
Linde Group Material Handling — Q2 sales growth increases to 5.9% yoy after +3.6% in Q1 — EBITA margin up 0.4% to 4.5% in H1 (2004: 4.1%) In € million Q2 05 ∆ H1 05 ∆ Sales 897 5.9% 1,668 4.8% EBITDA 133 12.7% 238 9.7% Margin 14.8% - 14.3% - EBITA 50 19.0% 75 15.4% Margin 5.6% - 4.5% - EBT 41 41.4%
Slide 24: Material Handling – H1/2005 market growth vs H1/2004
Linde Group Material Handling – H1/2005 market growth (order intake) vs H1/2004 Counterbalance Trucks Warehouse Trucks 50% 45% 43% 42% 40% 35% 35% 30% 25% 20% 14% 13% 15% 15% 9% 9% 9% 10% 6% 5% 5% 5% 5% 5% 1% -2% 0% -5% Europe Eastern N. S. Asia China Others World Source: WITS Europe America America
Slide 25: Material Handling - Efficiency improvement & Growth initiatives
Linde Group Material Handling - Efficiency improvement & Growth initiatives — „TRIM“ program will be completed this year and lead to improvements of €150m — „GO“ program (Growth and Operational excellence) to take over in 2005 — Labour agreement improves unit costs at Linde MH — Series of measures i
Slide 26: Material Handling - Outlook
Linde Group Material Handling - Outlook — Slower market growth, to be sustained in H2 — USA and Asia are the major growth drivers — Growth in Western Europe remains moderate — Eastern Europe maintains above average rates — Confirmed outlook for FY 2005 — Increase in sales and significant improvement
Slide 27: 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 Robert Schneider Tel: +49 611 770 270 E-mail: robert.schneider@linde.de Jo Raja Tel: +49 611 770 128 E-mail: jo.raja@linde.de 27