Linde plc · NASDAQ:LIN
Linde — H1 2011 Earnings Presentation
26 slides from Linde's earnings presentation, Jul 29, 2011
Slide 1: January – June 2011 Conference Call
January – June 2011 Conference Call Georg Denoke Member of the Executive Board and CFO 29 July 2011
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 – 6M 2011
Highlights – 6M 2011 Continuously Improving. Ongoing growth momentum drives Group sales up 11.0% to € 6,774 m Group operating profit grows over-proportionately by 11.7% to € 1,559 m Continuous strong increase of reported EPS by 26.2% to € 3.32 and of adjusted EPS by 20.3% to € 3.79 Operating Cash Fl
Slide 4: Group, sales by Divisions
Group, sales by Divisions Unchanged growth momentum drives group sales up 11.0% in € million, as reported 6,774 +11.0% Gases Division 6,104 — Growth momentum continues: comparable* sales further increase to 8.5% — Growth in all product areas: bulk and cylinder further accelerated +10.2% 5,436 Gases
Slide 5: Group, operating profit by Divisions
Group, operating profit by Divisions Group margin of 23.0% in € million, 1,559 as reported +11.7% 1,396 Gases Division — Operating profit* on double-digit growth track — Operating margin up by 20 bp to 27.3% supported by HPO +10.9% 1,483 1,337 Engineering Division Gases — Operating margin of 11.5% a
Slide 6: Division Gases, sales bridge
Division Gases, sales bridge 6M sales increase of 8.5% on comparable basis in € million +8.5% 5,436 4,931 +0.3% +1.0% +0.4% 6M 2010 Consolidation Currency Natural Gas Price/Volume 6M 2011 6
Slide 7: Gases Division, sales by operating segment
Gases Division, sales by operating segment Growth momentum continues in all regions in € million EMEA Asia/Pacific Americas 2,824 2,613 +8.1% 1,473 1,095 1,173 1,254 +17.5% +7.1% +5.9%* +11.2%* +11.8%* 6M 2010 6M 2011 6M 2010 6M 2011 6M 2010 6M 2011 — Growth well balanced — Growth led by Asia — Tonn
Slide 8: Gases Division, operating profit by operating segment
Gases Division, operating profit by operating segment Strongest increase in operating profit in Asia/Pacific in € million EMEA Asia/Pacific Americas 807 737 +9.5% 406 352 +15.3% 248 +8.9% 270 +40 bp 28.6% 28.1% -50 bp +40 bp 27.6% 23.0% 28.2% 22.6% 6M 2010 6M 2011 6M 2010 6M 2011 6M 2010 6M 2011 — C
Slide 9: Gases Division, sales by product areas
Gases Division, sales by product areas Growth accelerated in Cylinder and Bulk in € million, comparable*, consolidated +8.5% 5,436 5,012* 584 +5.4% Healthcare 554 1,331 +11.4% Tonnage 1,195 1,297 Bulk 1,203 +7.8% +8.0% Cylinder 2,060 2,224 *excluding currency, natural gas price and consolidation eff
Slide 10: Gases Division, product areas (comparable yoy growth)
Gases Division, product areas (comparable yoy growth) Cylinder business continues to grow Healthcare Tonnage +13.3% +12.1% +11.1% +10.3% +10.7% +10.0% +6.5% +5.1% +5.5% +5.8% +5.7% +5.8% +5.0% +3.7% +4.0% +2.7% +1.5% -1.7% -4.4% -6.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009
Slide 11: Gases Division, project pipeline
Gases Division, project pipeline Solid basis for sustainable growth — Project amount for 2012 further increased in the first six months by € 150 m to € 700 m — Around € 2.8 bn investments between 2009-2012 (thereof € 0.6 bn in JVs @ share) — Close to 70% of total project-capex allocated to Growth Ma
Slide 12: Mega-Trend Energy/Environment LNG-terminal Nynäshamn/Sweden
Mega-Trend Energy/Environment LNG-terminal Nynäshamn/Sweden No natural gas pipeline grid in the Baltic region May 2011 One-Stop-Provider in LNG-business — First LNG import terminal in the LNG terminal built by Linde Engineering Baltics completed: ~ € 100 m — Located 60 km south of Stockholm LNG term
Slide 13: Engineering Division, key figures
Engineering Division, key figures Order intake up by 19.4% — Order intake mainly driven by Asia/Pacific and air separation units — Order backlog stays strong at € 3,763 bn (year-end 2010: € 3,965 bn) — As a result of very successful execution of individual projects the margin expectation for 2011 is
Slide 14: Group, Cash Flow Statement
Group, Cash Flow Statement in € million Q1 11 Q2 11 H1 11 H1 10 Operating profit 761 798 1,559 1,396 Change in Working Capital -180 6 -174 -101 Other changes -141 -267 -408 -393 Operating Cash Flow 440 537 977 902 Investments in tangibles/intangibles -237 -310 -547 -503 Acquisitions/Financial invest
Slide 15: Group, solid financial position
Group, solid financial position Net debt/EBITDA-ratio of 1.8x Proactive liability management — Rationale: Extension of the maturity profile and increase of the liquidity reserve — ~€ 360 m partial buyback of € 1.3 bn bonds maturing in 2012 and 2013 — Issuance of € 600 m 3.875 % bond maturing in 2021
Slide 16: Outlook - confirmed
Outlook - confirmed 2011 Group — Growth in sales and operating profit vs. 2010 — Confirmation of HPO-program: € 650-800 m of gross cost savings in 2009-2012 Gases — Sales increase vs. 2010 — Operating profit to grow at a faster pace than sales Engineering — Sales at the same level as in 2010 — Opera
Slide 17: Summary
Summary Continuously Improving. Positive performance continued over 6M 2011 Double-digit sales and earnings increase, comparable Gases growth accelerated to 8.5% Sustainable strong Cash Flow generation Implementation of HPO on track Further increase of project pipeline in the Gases Division Strong p
Slide 18: Appendix
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Slide 19: Group Financial Highlights Q2 2011
Group Financial Highlights Q2 2011 in € million Q2 10 Q2 11 ∆ in % Sales 3,210 3,449 7.4 Operating profit 755 798 5.7 Margin (in %) 23.5 23.1 EBIT before PPA depreciation 512 532 3.9 PPA depreciation 66 60 EBIT 446 472 5.8 Financial Result -83 -77 7.2 Taxes -93 -100 7.5 Net income 270 295 9.3 Net in
Slide 20: Group Financial Highlights H1 2011
Group Financial Highlights H1 2011 in € million H1 10 H1 11 ∆ in % Sales 6,104 6,774 11.0 Operating profit 1,396 1,559 11.7 Margin (in %) 22.9 23.0 EBIT before PPA depreciation 922 1,039 12.7 PPA depreciation 125 121 EBIT 797 918 15.2 Financial Result -151 -126 16.6 Taxes -163 -194 19.0 Net income 4
Slide 21: Gases Division, operating segments Historical data 2010
Gases Division, operating segments Historical data 2010 EMEA (€ m) Q1 2010 Q2 2010 Q3 2010 Q4 2010 FY 2010 Sales 1,264 1,349 1,365 1,352 5,330 Operating profit* 351 386 389 387 1.513 Operating margin 27.8% 28.6% 28.5% 28.6% 28.4% Asia/Pacific (€ m) Q1 2010 Q2 2010 Q3 2010 Q4 2010 FY 2010 Sales 577 6
Slide 22: Gases Division, Joint Ventures
Gases Division, Joint Ventures in € million Proportionate Sales Share of Net Income (not incl. in the Group top-line) (contribution to operating profit) 10 192 +11.6% 172 39 -7.7% 36 6M 2010 6M 2011 6M 2010 6M 2011 22
Slide 23: Group, Accounting considerations Impact of PPA
Group, Accounting considerations Impact of PPA Purchase Price Allocation (PPA) Impact in 6M 2011: € 121 m (6M 2010: € 125 m) Expected impact FY 2011: ~ € 250 m (upper end of guidance due to enforced one-brand strategy) Background: — The difference between the purchase cost of BOC and related acquisi
Slide 24: Definition of financial key figures
Definition of financial key figures Operating Return EBITDA (incl. IFRIC 4 adjustment) excl. finance costs for pensions Profit excl. non-recurring items incl. share of net income from associates and joint ventures adjusted Return Operating profit - depreciation / amortisation ROCE excl. depreciation
Slide 25: Linde Gases Division in Greater China
Linde Gases Division in Greater China Important project wins in 2011 Chongqing Yantai — Start-up of ASU in Q2/2011 — Long-term on-site supply contract — Long-term on-site supply with Wanhua Polyurethanes Co., contract with Sinopec Ltd. signed in July 2011 — Wanhua is already a customer of Linde in C
Slide 26: Investor Relations
Investor Relations Contact Phone: +49 89 357 57 1321 eMail: [email protected] Internet: www.linde.com Financial Calendar — Interim Report January to September: 28 October 2011 — Annual General Meeting: 04 May 2012 26