Linde plc · NASDAQ:LIN
Linde — 9M 2011 Earnings Presentation
24 slides from Linde's earnings presentation, Oct 28, 2011
Slide 1: January – September 2011 Conference Call
January – September 2011 Conference Call Georg Denoke Member of the Executive Board and CFO 28 October 2011 1
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: Performance – 9M 2011 Highlights
Performance – 9M 2011 Highlights Group sales increased by 8.5% to € 10,209 m With an increase of 10.2% to € 2,363 m operating profit grew stronger than sales Continuous strong increase of reported EPS by 21.5% to € 5.02 and of adjusted EPS by 16.4% to € 5.68 Strong operating cash flow increases by 1
Slide 4: Group, sales by Divisions
Group, sales by Divisions Continued growth in all areas in € million, as reported 10,209 Group 9,405 +8.5% Gases Division — Growth momentum continues: comparable* sales up by 8.1% — Growth in all product areas lead by product area Tonnage +9.0% 8,270 Gases 7,590 Engineering Division — Order intake w
Slide 5: Group, operating profit by Divisions
Group, operating profit by Divisions Group margin improved in € million, 2,363 as reported +10.2% 2,145 Group Gases Division — Growth of operating profit* continues — Operating margin of 27.3% further improved against previous year +9.7% 2,254 2,055 Engineering Division Gases — Operating margin of 1
Slide 6: Division Gases, sales bridge
Division Gases, sales bridge 9M sales increase of 8.1% on comparable basis in € million +8.1% 8,270 7,590 +0.3% -0.1% +0.7% 9M 2010 Consolidation Currency Natural Gas Price/Volume 9M 2011 6
Slide 7: Gases Division, sales by operating segment
Gases Division, sales by operating segment Growth in all regions led by Asia/Pacific in € million EMEA Asia/Pacific Americas 3,978 4,258 +7.0% 2,283 1,700 1,778 1,965 +16.2% +4.6% +5.6%* +10.8%* +10.5%* 9M 2010 9M 2011 9M 2010 9M 2011 9M 2010 9M 2011 — Solid growth in all regions — Growth led by Asi
Slide 8: Gases Division, operating profit by operating segment
Gases Division, operating profit by operating segment in € million EMEA Asia/Pacific Americas 1,215 1,126 +7.9% 634 552 +14.9% 377 +7.4% 405 +20 bp 28.1% -30 bp +60 bp 28.5% 27.8% 22.8% 28.3% 22.2% 9M 2010 9M 2011 9M 2010 9M 2011 9M 2010 9M 2011 — Continuous implementation of HPO supports margin dev
Slide 9: Gases Division, sales by product areas
Gases Division, sales by product areas Growth accelerated in Bulk in € million, comparable*, consolidated +8.1% 8,270 7,651 880 +5.0% Healthcare 838 2,015 +9.7% Tonnage 1,837 1,993 Bulk 1,828 +9.0% +7.4% Cylinder 3,148 3,382 *excluding currency, natural gas price and consolidation effect 9M 2010 9M
Slide 10: Gases Division, product areas
Gases Division, product areas Comparable year-on-year growth in percent Healthcare Bulk 11.4 9.9 7.3 8.4 5.2 6.3 5.1 6.5 5.5 5.8 5.7 5.8 0.5 5.0 4.0 4.2 3.7 2.7 1.5 -6.9 -7.9 -11.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2009 2010 2011 Tonnage 13.3 12.1 Cylin
Slide 11: Gases Division, project pipeline
Gases Division, project pipeline Solid foundation for future growth — Project amount for 2013 already at € 500 m — Around € 3.3 bn investments between 2009-2013 (thereof € 0.6 bn in JVs @ share) — Close to 70% of total project-capex allocated to Growth Markets — Project opportunities 12 months forwa
Slide 12: Mega-trend Energy/Environment Progress 2011
Mega-trend Energy/Environment Progress 2011 — Large-scale enhanced gas recovery in Abu Dhabi EOR (N2 / NRU / CO2) — Nitrogen is pumped into the reservoirs to increase pressure and maintain the gas flow — Higher exploitation rate of 20-30% LNG — LNG-terminal in Sweden: Merchant LNG — Pre-Feed-study w
Slide 13: Engineering Division, key figures
Engineering Division, key figures Order intake up by 9 % — Order intake mainly driven by air separation units and well balanced between growth and mature markets and — Order backlog stays strong at € 3,761 bn (year-end 2010: € 3,965 bn) — Margin expectation for 2011 is at least 10% in € million 9M 1
Slide 14: Group, Cash Flow Statement
Group, Cash Flow Statement in € million Q1 11 Q2 11 Q3 11 9M 11 9M 10 Operating profit 761 798 804 2,363 2,145 Change in Working Capital -180 6 60 -114 -126 Other changes -141 -267 -142 -550 -486 Operating Cash Flow 440 537 722 1,699 1,533 Investments in tangibles/intangibles -237 -310 -346 -893 -76
Slide 15: Group, solid financial position
Group, solid financial position Net debt/EBITDA ratio of 1.7x Credit Ratings — Standard&Poor―s: A-/A-2 with stable outlook (12.08.2011) — Moody´s: A3/P-2 with stable outlook (12.10.2011) Net debt in € bn Net debt/EBITDA 12,815 5 4.8 9,933 4 3 2.7 2.6 6,427 6,423 6,119 2.5 5,497 5,232 2 1.9 1.7 1 0 3
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: Appendix
pe iiss Leading. THE LINDE GROUP
Slide 18: Group Financial Highlights Q3 2011
Group Financial Highlights Q3 2011 in € million Q3 10 Q3 11 ∆ in % Sales 3,301 3,435 4.1 Operating profit 749 804 7.3 Margin (in %) 22.7% 23.4% 70 BP EBIT before PPA depreciation 502 541 7.8 PPA depreciation -66 -60 -9.1 EBIT 436 481 10.3 Financial Result -79 -89 12.7 Taxes -92 -87 -5.4 Net income 2
Slide 19: Group Financial Highlights 9M 2011
Group Financial Highlights 9M 2011 in € million 9M 10 9M 11 ∆ in % Sales 9,405 10,209 8.5 Operating profit 2,145 2,363 10.2 Margin (in %) 22.8% 23.1% 30 BP EBIT before PPA depreciation 1,424 1,580 11.0 PPA depreciation -191 -181 -5.2 EBIT 1,233 1,399 13.5 Financial Result -230 -215 -6.5 Taxes -255 -
Slide 20: 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 21: 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 +11.4% 293 263 63 -7.9% 58 9M 2010 9M 2011 9M 2010 9M 2011 21
Slide 22: Group, Accounting considerations Impact of PPA
Group, Accounting considerations Impact of PPA Purchase Price Allocation (PPA) Impact in 9M 2011: € 181 m (9M 2010: € 191 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 23: 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 24: Investor Relations
Investor Relations Contact Phone: +49 89 357 57 1321 eMail: [email protected] Internet: www.linde.com Financial Calendar — FY 2011 Results: 09 March 2012 — Q1 2012 Results: 04 May 2012 — Annual General Meeting: 04 May 2012 24