Linde plc · NASDAQ:LIN
Linde — Q1 2011 Earnings Presentation
24 slides from Linde's earnings presentation, May 4, 2011
Slide 1: January – March 2011 Conference Call
January – March 2011 Conference Call Georg Denoke Member of the Executive Board & CFO 4 May 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 – Q1 2011
Highlights – Q1 2011 Continuously Improving. Ongoing growth momentum drives group sales up 14.9% to € 3,325 m Group operating profit grows over-proportionately by 18.7% to € 761 m Strong EPS increase with reported EPS up 42.7% to € 1.67 and adjusted EPS of € 1.88 (+33.3%) Operating Cash Flow increas
Slide 4: Group, sales by Divisions
Group, sales by Divisions Unchanged growth momentum drives group sales up 14.9% in € million, 3M 2010 3M 2011 as reported 3,325 Gases Division 2,894 +14.9% — Growth momentum intact: comparable* sales increase of 8.3% — Growth in all product areas: 2,662 Gases tonnage leading, cylinder accelerating +
Slide 5: Group, operating profit by Divisions
Group, operating profit by Divisions Further group margin improvement by 80bp to 22.9% in € million, 3M 2010 3M 2011 as reported 761 Gases Division +18.7% 641 — Operating profit* on double-digit growth track — Operating margin further increased by 60 bp yoy to 27.3% — Continuous focus on HPO: initia
Slide 6: Division Gases, sales bridge
Division Gases, sales bridge 3M sales increase of 8.3% on comparable basis in € million +8.3% 2,662 +4.8% +0.2% 2,340 +0.5% 3M 2010 Consolidation Currency Natural Gas Price/Volume 3M 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 1,393 1,264 +10.2% 3,002 707 2,801 +22.5% +12.8% 577 580 514 +6.0%* +11.0%* +11.1%* 3M 2010 3M 2011 3M 2010 3M 2011 3M 2010 3M 2011 — Growth in Tonnage due — Growth led by Grea
Slide 8: Gases Division, operating profit by operating segment
Gases Division, operating profit by operating segment Operating margin further increased to 27.3% in € million EMEA ASIA/PACIFIC AMERICAS 395 +12.5% 351 +21.0% 196 162 +21.4% 136 +60 bp 28.1% -40 bp 112 +160 bp 28.4% 27.7% 27.8% 23.4% 21.8% 3M 2010 3M 2011 3M 2010 3M 2011 3M 2010 3M 2011 — Continuou
Slide 9: Gases Division, sales by product areas
Gases Division, sales by product areas Growth in all product areas in € million, comparable*, consolidated +8.3% 2,662 2,457* 292 +5.8% Healthcare 276 659 +12.1% Tonnage 588 636 Bulk 593 +7.3% +7.5% Cylinder 1,000 1,075 *excluding currency, natural gas price and consolidation effect Q1 2010 Q1 2011
Slide 10: Gases Division, product areas (comparable yoy growth)
Gases Division, product areas (comparable yoy growth) Cylinder business continues recovery Healthcare Tonnage +13.3% +11.1% +10.3% +12.1% +6.5% +10.0% +5.5% +5.8% +5.7% +5.8% +5.1% +3.7% +4.0% +2.7% +1.5% -1.7% -4.4% -6.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2009 201
Slide 11: Gases Division, project pipeline
Gases Division, project pipeline Solid basis for sustainable growth — Around € 2.8 bn investments between 2009-2012 (thereof € 0.6 bn in JVs @ share) — Project amount 2012 further increased by € 100 m to € 650 m — Close to 70% of total project-Capex allocated to Growth Markets — Increasing number of
Slide 12: Linde Gases Division in Greater China
Linde Gases Division in Greater China Chongqing - Developing a new large chemical cluster April 2011 - JV agreement with Chongqing Chemical and Pharmaceutical Holding Company (CCPHC), 60% Linde share (fully consolidated) - Large scale HYCO plant: ~ € 200 m capex, expected on stream date 2014 - Long-
Slide 13: Engineering Division, key figures
Engineering Division, key figures Execution of projects fully on track — Order intake still characterised by small and midsize projects — More than 50% of order intake from Europe and North America show a further improvement of the investment climate in mature countries — Order backlog stays strong
Slide 14: Group, Cash Flow Statement
Group, Cash Flow Statement Operating Cash Flow up 10.8% to € 440 m in € million Q1 10 Q1 11 Operating profit 641 761 Change in Working Capital -98 -180 Other changes -146 -141 Operating Cash Flow 397 440 Investments in -223 -237 tangibles/intangibles Acquisitions/Financial -6 -13 investments Other 3
Slide 15: Outlook - confirmed
Outlook - confirmed 2011 Group — Growth in sales and operating profit vs. 2010 — Confirmation of HPO-programme: € 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 — Ope
Slide 16: Appendix
rt LY THE LINDE GROUP
Slide 17: Group Financial Highlights 3M 2011
Group Financial Highlights 3M 2011 in € million 3M 10 3M 11 in % Sales 2,894 3,325 +14.9 Operating profit 641 761 +18.7 Margin 22.1 22.9 +80 bp EBIT before PPA depreciation 410 507 +23.7 PPA depreciation 59 61 - EBIT 351 446 +27.1 Financial Result -68 -49 - Taxes 70 94 - Net income 213 303 +42.3 Net
Slide 18: Group, solid financial position
Group, solid financial position Net debt/EBITDA-ratio of 1.7x Net debt in € bn Net debt/EBITDA 12,815 5.0 4.8 9,933 6,427 6,423 3.0 2.7 6,119 2.5 2.6 5,497 1.9 5,222 2.0 1.7 1.0 30/9/06 2006 2007 2008 2009 2010 31/3/11 2006 2007 2008 2009 2010 LTM 18
Slide 19: Gases Division, New Operating Segments
Gases Division, New Operating Segments Americas EMEA (Europe, Middle East, Africa) Asia/Pacific Kent Masters Aldo Belloni* Sanjiv Lamba * also responsible for the Engineering Division 19 19
Slide 20: Gases Division, Operating Segments
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 profit1) 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
Slide 21: Gases Division, Joint Ventures
Gases Division, Joint Ventures Asian projects drive growth of our JV sales in € million Proportionate Sales Share of Net Income (not incl. in the Group top-line) (contribution to operating profit) 10 +8.5% 89 82 +6.3% 17 16 3M 2010 3M 2011 3M 2010 3M 2011 21
Slide 22: Group, Accounting considerations
Group, Accounting considerations Impact of PPA Purchase Price Allocation (PPA) Impact in 3M 2011: € 61 m (3M 2010: € 59 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 acquisiti
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 — Annual General Meeting: 12 May 2011 — Interim Report January to June: 29 July 2011 — Interim Report January to September: 28 October 2011 24