Linde plc · NASDAQ:LIN
Linde — Q1 2013 Earnings Presentation
30 slides from Linde's earnings presentation, May 6, 2013
Slide 1: Conference Call Q1 2013 Results
Conference Call Q1 2013 Results Georg Denoke CFO and Member of the Executive Board 06 May 2013 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 – Q1 2013: Solid development in Q1
Performance – Q1 2013 Solid development in Q1 Q1 2013 Q1 2012 yoy Revenue [€m] 3,985 3,614 +10.3% Operating Profit* [€m] 953 846 +12.6% Operating Margin [€m] 23.9% 23.4% + 50bp Operating Cash Flow [€m] 522 447 +16.8% EPS reported** [€] 1.72 1.65 +4.2% — Solid growth realised despite unfavourable mac
Slide 4: Group, revenue and operating profit by divisions
Group, revenue and operating profit by divisions Double digit growth in Q1 Revenue Operating Profit [€m] 3,985 [€ m] 953 3,614 +10.3% 846 +12.6% 3,448 3,004 +14.8% 27.4% 942 27.3% 823 +14.5% - 8.2% 12.1% -9.6% 12.0% 601 552 73 9 -15 66 -50 -55 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Gases Engineering Other/
Slide 5: Gases Division, sales bridge
Gases Division, sales bridge Price/volume increase of 3.7%* [€m] +12.6% +0.4% 3,448 +3.7%* 3,004 -1.5% -0.4% Q1 2012 Currency Natural Gas Price/Volume Lincare Others Q1 2013 *including € 58m changes in consolidation from bolt-on acquisitions (European Healthcare acquisitions and others) 5
Slide 6: Gases Division, revenue by operating segment
Gases Division, revenue by operating segment Growth in all segments [€m] EMEA Asia/Pacific Americas 1,460 1,497 +2.5% 896 926 +3.3% 1,054 672 +56.8% +4.0%* +5.4%* +2.2%* Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 — Growth driven by Homecare — Acceleration of growth in the — Growth in both regio
Slide 7: Gases Division, operating profit by operating segment
Gases Division, operating profit by operating segment Solid performance [€m] EMEA Asia/Pacific Americas 419 +2.6% 430 234 +2.6% 240 272 170 +60.0% 28.7% 28.7% 26.1% 25.9% 25.3% 25.8% Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Margin Development — EMEA resilient margin development — Asia/Pacific
Slide 8: Gases Division, revenue by product areas
Gases Division, revenue by product areas Stable growth in a challenging macro-environment [€m], comparable* (consolidated) Healthcare +3.7% 3,448 Growth in North America, South 3,326 America as well as in Europe 764 Healthcare 690 +10.7% Tonnage Adjusted for the negative impacts 875 from scheduled s
Slide 9: Gases Division, project pipeline
Gases Division, project pipeline Currently € 2.7 billion under execution — Amount of project opportunities remains on a high level (Status 31/12/2012: € 4.2 bn) — Around 70% of 2013-2016 project amounts are allocated to Growth Markets Amount of committed projects by on-stream date [€m] ~900 ~800 ~80
Slide 10: Engineering Division: Recent major project wins
Engineering Division Recent major project wins Shenhua Ningxia Coal Industry Group Co. Ltd. | China Supply of six large-scale air separation units for coal gasification for a coal-to liquid process GASSCO AS | Germany Supply of natural gas terminal for distribu- tion in Germany Reliance Industries L
Slide 11: Engineering Division, key figures
Engineering Division, key figures High order intake and very strong order backlog — Strong project wins in the first quarter also in the Energy sector — Air separation and natural gas plants account for almost 90% of the order intake [€m] Sales Order Intake Order Backlog [€m] [€m] 601 4,578 552 -8.2
Slide 12: Group, net debt
Group, net debt Solid financial position Net debt Net debt/EBITDA [€bn] 8.5* 8.6 [x] 6.4 6.1 2.5 2.6 5.5 2.3* 2.3 5.1 1.9 1.6 8.1 2008 2009 2010 2011 2012 31/03/ 2008 2009 2010 2011 2012 LTM 2013 31/03/ 2013 — Lincare acquisition facility entirely refinanced Credit Ratings — Placement of € 650m and
Slide 13: Outlook and Mid-term targets
Outlook* Determination. 2013 Revenue Further increase vs. 2012 Operating Profit** At least 4 billion Euro Gases Division Revenue and operating profit increase vs. 2012 Engineering Division Revenue at 2012 level & operating margin of around 10% Mid-term targets 2016 2016 Operating Profit** At least 5
Slide 14: Appendix
rt LY THE LINDE GROUP
Slide 15: Group, Q1 2013 Key P&L items
Group, Q1 2013 Key P&L items [€m] Q1 2012 Q1 2013 ∆ in % Revenue 3,614 3,985 10.3 Operating profit 846 953 12.6 Operating margin 23.4% 23.9% 50 bp EBIT 491 521 6.1 PPA depreciation -66 -58 12.1 EBIT before PPA depreciation 557 579 3.9 Financial result -96 -88 8.3 Taxes -86 -93 -8.1 Net income 309 34
Slide 16: Group, Q1 2013 Cash Flow Statement
Group, Q1 2013 Cash Flow Statement [€m] Q1 2013 Q1 2012 Operating profit 953 846 Change in Working Capital -259 -280 Other changes -172 -119 Operating Cash Flow 522 447 Investments in tangibles/intangibles -493 -356 Acquisitions/Financial investments -61 Other 16 26 Investment Cash Flow* -538 -330 F
Slide 17: Gases Division, operating segments Quarterly data
Gases Division, operating segments Quarterly data EMEA [€m] Q1 2012 Q1 2013 Revenue 1,460 1,497 Operating profit* 419 430 Operating margin 28.7% 28.7% Asia/Pacific [€m] Q1 2012 Q1 2013 Revenue 896 926 Operating profit* 234 240 Operating margin 26.1% 25.9% Americas [€m] Q1 2012 Q1 2013 Revenue 672 1,
Slide 18: Group EPS adjustment
Group EPS adjustment [€m] Q1 2013 PPA PPA Homecare PPA BOC adjusted Homecare adjusted Q1 2012 as reported adjustment figures adjustment figures adjusted yoy EBIT 521 58 579 30 609 557 +9.3% Profit for the period 340 41 381 18 399 348 +14.7% Profit for the period after minorities 318 41 359 18 377 32
Slide 19: Impact on The Linde Group: IFRS 10 and 11 impact
Impact on The Linde Group IFRS 10 and 11 impact Restatement under IFRS 10 and 11 Please find adjustments for 2012 and Q1 2013 on the following pages 19
Slide 20: Impact of Early Adoption of IFRS 10 and 11 and IAS 19 – Q1 2013
Impact of Early Adoption of IFRS 10 and 11 and of IAS 19 revised Group, Q1 2013 [€m] Q1 2013 Q1 2013 before adoption adjustment reported Revenue 3,839 146 3,985 Operating profit* 903 50 953 EBIT 499 22 521 Financial result -83 -5 -88 EBT 416 17 433 Net profit reported 338 2 340 Net profit after mino
Slide 21: Impact of Early Adoption – Group FY 2012
Impact of Early Adoption of IFRS 10 and 11 and of IAS 19 revised Group, FY 2012 [€m] 2012 2012 reported adjustment revised Revenue 15,280 553 15,833 Operating profit* 3,530 156 3,686 EBIT 1,992 63 2,055 Financial result -305 -16 -321 EBT 1,687 47 1,734 Net profit reported 1,324 17 1,341 Net profit a
Slide 22: Impact of Early Adoption – Group Q1 and Q2 2012
Impact of Early Adoption of IFRS 10 and 11 and of IAS 19 revised Group, Q1 and Q2 2012 [€m] Q1 2012 Q1 2012 Q2 2012 Q2 2012 reported adjustment revised reported adjustment revised Revenue 3,505 109 3,614 3,669 142 3,811 Operating profit* 808 38 846 847 38 885 EBIT 476 15 491 497 16 513 Financial res
Slide 23: Impact of Early Adoption – Group Q3 and Q4 2012
Impact of Early Adoption of IFRS 10 and 11 and of IAS 19 revised Group, Q3 and Q4 2012 [€m] Q3 2012 Q3 2012 Q4 2012 Q4 2012 reported adjustment revised reported adjustment revised Revenue 3,889 155 4,044 4,217 147 4,364 Operating profit* 908 41 949 967 39 1,006 EBIT 494 17 511 525 15 540 Financial r
Slide 24: Impact of Early Adoption – Total Gases 2012
Impact of Early Adoption of IFRS 10 and 11 and of IAS 19 revised Total Gases – 2012 [€m] Q1 2012 Q1 2012 Q2 2012 Q2 2012 Total Gases reported adjustment revised reported adjustment revised Revenue 2,855 149 3,004 2,975 152 3,127 Operating profit* 784 39 823 815 41 856 Operating margin 27.5% -10 bp 2
Slide 25: Impact of Early Adoption – Operating segments Q1 and Q2 2012
Impact of Early Adoption of IFRS 10 and 11 and of IAS 19 revised Operating segments – Q1 and Q2 2012 [€m] Q1 2012 Q1 2012 Q2 2012 Q2 2012 reported adjustment revised reported adjustment revised EMEA Revenue 1,445 15 1,460 1,499 15 1,514 Operating profit* 414 5 419 420 5 425 Operating margin 28.7% -
Slide 26: Impact of Early Adoption – Operating segments Q3 and Q4 2012
Impact of Early Adoption of IFRS 10 and 11 and of IAS 19 revised Operating segments – Q3 and Q4 2012 [€m] Q3 2012 Q3 2012 Q4 2012 Q4 2012 reported adjustment revised reported adjustment revised EMEA Revenue 1,528 16 1,544 1,526 17 1,543 Operating profit* 431 5 436 435 7 442 Operating margin 28.2% -
Slide 27: Impact of Early Adoption – Operating segments FY 2012
Impact of Early Adoption of IFRS 10 and 11 and of IAS 19 revised Operating segments – FY 2012 [€m] 2012 2012 reported adjustment revised EMEA Revenue 5,998 63 6,061 Operating profit* 1,700 22 1,722 Operating margin 28.3% +10 bp 28,4% Asia/Pacific Revenue 3,498 362 3,860 Operating profit* 935 61 996
Slide 28: Group impact of Early Adoption – Statement of Financial Position
Group impact of Early Adoption of IFRS 10, 11 and of IAS 19 revised Statement of Financial Position as of 31 December 2012 [€m] 31/12/2012 31/12/2012 reported adjustment revised Non-current assets 26,795 645 27,440 Current assets 6,682 175 6,857 Total equity 13,658 - 13,658 Non-current liabilities 1
Slide 29: Group, definition of financial key figures
Group, definition of financial key figures Operating Return EBITDA (incl. IFRIC 4 adjustment) excl. special items Profit incl. share of net income from associates and joint ventures adjusted Return Operating profit - depreciation / amortisation ROCE excl. depreciation/amortization from purchase pric
Slide 30: Investor Relations
Investor Relations Contact Phone: +49 89 357 57 1321 Email: [email protected] Internet: www.linde.com Financial calendar — Annual General Meeting: 29 May 2013 — 6M report 2013: 30 July 2013 — 9M report 2013: 29 October 2013 30