Linde Full Year 2012 Analyst Presentation

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The Linde Group Analyst Presentation of Fiscial Year 2012, 03-07-2013

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Linde Full Year 2012 Analyst Presentation

  1. 1. Full year results 2012.Determination.Analysts’ Conference Call07 March 2013 1
  2. 2. DisclaimerThis presentation contains forward-looking statements about Linde AG (“Linde”) and their respectivesubsidiaries and businesses. These include, without limitation, those concerning the strategy of an integratedgroup, future growth potential of markets and products, profitability in specific areas, the future productportfolio, anti-trust risks, development of and competition in economies and markets of the group.These forward looking statements involve known and unknown risks, uncertainties and other factors, many ofwhich are outside of Linde’s control, are difficult to predict and may cause actual results to differ significantlyfrom any future results expressed or implied in the forward-looking statements in this presentation.While Linde believes that the assumptions made and the expectations reflected in this presentation arereasonable, no assurance can be given that such assumptions or expectations will prove to have been correctand no guarantee of whatsoever nature is assumed in this respect. The uncertainties include, inter alia, the riskof a change in general economic conditions and government and regulatory actions. These known, unknown anduncertain factors are not exhaustive, and other factors, whether known, unknown or unpredictable, could causethe group’s actual results or ratings to differ materially from those assumed hereinafter. Linde undertakes noobligation to update or revise the forward-looking statements in this presentation whether as a result of newinformation, future events or otherwise. 2
  3. 3. AgendaPart 1 Prof. Dr Wolfgang Reitzle1. Performance 20122. Strategic Focus: — High Performance Organisation — Growth Potential Mega-trends3. OutlookPart 2 Georg Denoke1. Operational Performance & Capex2. Financial Performance & Dividend3. SummaryAppendix 3
  4. 4. Performance – 2012Profitable growth. 2012 2011 yoy in % Revenue [€m] 15,280 13,787 +10.8% Operating Profit* [€m] 3,530 3,210 +10.0% Operating Margin [€m] 23.1% 23.3% - 20bp Operating Cash Flow [€m] 2,522 2,426 +4.0% EPS reported [€] 7.03 6.88 +2.2% — Solid growth realised despite the unfavourable macro-economic environment — Growth supported by acquisitions in Healthcare — EPS-development impacted by one-time and additional PPA charges*Please see definition on page 42 4
  5. 5. Group, revenue and operating profit by divisionsAcceleration of growth in Q4 Revenue Operating Profit[€m] 15,280 [€ m] 3,530 13,787 +10.8% 3,210 +10.0% 12,591 11,061 +13.8% 27.5% 3,403 27.0% 3,041 +11.9% +1.2% 2,531 2,561 12.0% +2.6% 12.2% 195 304 312 128 -135 -185 2011 2012 2011 2012 Gases Engineering Other/Cons. Gases Engineering Other/Cons.— Comparable growth* in Gases has accelerated — In Gases up-front investments in Asia in Q4 and reached 3.8% for the full year despite additionally impacted the operating margin several plant shut downs — Due to successful execution of individual— In Engineering natural gas plants showed the projects the Engineering operating margin highest growth rates driven by US-shale gas peaked and increased LNG-activities*excluding currency, natural gas price effect and Lincare 5
  6. 6. Business PerformanceHPO 2013 – 2016: € 750 – 900 m additional gross cost savings — HPO 2009 to 2012: Upper end of target range achieved with € 780 m of accumulated gross cost savings — HPO 2013 to 2016: Ambitious continuation of the standardisation and optimisation of processes within an extended footprint Cylinder Supply Chain Procurement e.g. standardisation and automation of filling e.g. product standardisation and global plants roll-out of e-procurement ~20% ~30% Target Range of € 750 – 900 m HPO 2013 to 2016: of accumulated gross cost savings ~35% ~15% Bulk Supply Chain SG&A e.g. optimisation of total production and e.g. shared service centres distribution cost 6
  7. 7. Mega-trendsLeveraging growth with our Gases & Engineering set-up Growth Markets Energy/Environment Healthcare 7
  8. 8. Mega-trend Growth MarketsStrong investments in future growthAround 50% of capex invested in Growth Markets Growth Market revenue on a strong growth trackGases capex 2009 – 2012 Growth Markets revenue including JVs[€bn] [€bn] 1.9 CAGR 2009 – 2012: 15% 1.4 4.5 1.3 1.0 4.1 1.0 0.6 0.7 3.7 0.6 0.8 0.9 0.6 3.0 0.4 2009 2010 2011 2012 2009 2010 2011 2012 Mature Markets Growth Markets 8
  9. 9. Mega-trend Growth Markets Growth Market leader Market size Mature Markets* Market leader in 4 out of 5 Growth Markets North Western Australia America Europe 2012 € 16 bn € 10 bn € 1 bn 2020E € 24 bn € 13 bn € 2 bn #1 Eastern Europe CAGR 5% 3% 9% #1 in Greater China Market size Growth Markets* Greater South& Eastern South South #1 South & East Asia China East Asia Europe America Africa #2 South America 2012 € 6 bn € 4 bn € 2 bn € 2 bn € 0.5 bn 2020E € 16 bn € 10 bn € 5 bn € 5 bn € 1 bn #1 South Africa CAGR 13% 12% 12% 12% 9% #1 to #3 positions Other positions*Source: Linde data, figures for industrial gases only, excl. Japan, equipment and major impacts out of future growth markets of the energy/environment sector 9
  10. 10. Mega-trend Growth Markets Increasing intensity of industrial gases use in Growth Markets Industrial & medical gases consumption per capita 2010 vs. 2012 [€] Drivers USA Western Europe Increasing industrialisation in 32 34 54 58 Growth Markets Eastern Europe 5 6 China 3 4 Increasing wealth in South & East Asia 2 2 Growth Markets South America Australia 6 7 South Africa 7 8 New applications & need for higher 42 45 energy efficiency Mature Markets: +4% (CAGR) 2010 2012 Growth Markets: +10% (CAGR)Source: United Nations Population Division, Linde data, figures excl. Japan, equipment 10
  11. 11. Mega-trend Energy/EnvironmentImportance of new technologies & industrial gases applications NITROGEN METHANE HYDROGEN CARBON DIXOIDE OXYGEN EOR / EGR Cleaner fuels Clean Coal & Gas Gas-to-liquids — Build, own & — Build LNG-plants, terminals & fueling — CO2 separation, — Build, own and operate large stations conditioning and operate large scale nitrogen handling for flue scale oxygen schemes, — Own & operate LNG-terminals & fueling gas from coal schemes for nitrogen stations & distribute LNG to industrial and gas fired gas-to-liquid rejection units and maritime customers power plants plants or CO2-supply and from — Build hydrogen fueling stations & supply industrial hydrogen sources Market 2020E Market 2020E Market 2020E Market 2020E € 4-5 bn € 9-16 bn € 2-3 bn € 1.5-2 bn(Please find assumptions for estimates on page 40) 11
  12. 12. Mega-trend Energy/Environment Opportunities resulting from shale gas Global shale gas resources Opportunities for Linde [trillion cubic feet] Engineering North America — Natural gas processing plants — Ethane crackers Europe — LNG plants China 1,900 Order Intake for processing plants in the US 600 [USDm] ~1,130 1,300 ~600 ~250 ~280 South America Australia 2010 2011 2012 accum. South Africa 1,200 400 500 Gases Division — Industrial gases supply for new chemical clusters and gas-to-liquids plants (GTL)Source: U.S. Energy Information Administration, World shale gas resources, April 2011 — Merchant LNG 12
  13. 13. Mega-trend Healthcare Attractive environment for growth Market drivers Healthcare market 2012 vs. 2020 [€bn**] — Growing and ageing population +4% — High portion of untreated patients +2% — Increasing chronic diseases like sleep apnea 8.1 +10% and COPD 5.8 4.7 5.6 1.0 2.2 — Increasing wealth in Growth Markets 2012 2020E 2012 2020E 2012 2020E — Increasing demand for offerings that reduce North America Europe Growth Markets healthcare costs overall #1 position #2 position #1 position Percentage of population over the age of 60 years* Linde Healthcare set-up 2012 — No.1 position, with revenue of around € 3 bn (incl. Lincare 2012 proforma figures) — Active in 55 countries 34% Product & Service offering 27% 24% 25% 23% 19% — Gas supply & gas therapies 11% 11% — Sleep & pain therapies 2012 2050E 2012 2050E 2012 2050E 2012 2050E — REMEO: treatment and care of chronic patients North America Europe Asia South America — Adjacent supplies and services*Source: UNDESA, Population Division 2012 **Source: Linde data 13
  14. 14. Mega-trend HealthcareLincare: expansion to the global largest homecare marketLinde Healthcare development approach Share of revenue from Healthcare 2011 2012* Linde Group non-Healthcare Linde Group non-Healthcare Geographic expansion Linde Healthcare 91% 82% Business expansion 9% 9% Optimising 9% product portfolio Geographic expansion Healthcare Healthcare Lincare excl. and services Lincare * Lincare’s revenue proforma for FY 2012 (€ 1,556 m) Homecare — Leading provider in respiratory Homecare with 1.3 m individual patients — Similar product & service offerings for patients in all homecare markets — Cost leader and market leader in the consolidating US-market — Excellent patients access with nation wide coverage — Preferred environment for patients with a favourable cost structure (compared to hospitals) 14
  15. 15. 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 2012 2016 Operating Profit** [€] 3,530 m At least 5 bn ROCE adjusted** 11.5% ~14% ROCE 10.0% ~13% HPO 4yrs programme [€m] 780 750-900*Based on current macro-economic forecasts and exchange rates **Please see definition on page 42 15
  16. 16. AgendaPart 1 Prof. Dr Wolfgang Reitzle1. Performance 20122. Strategic Focus: — High Performance Organisation — Growth Potential Mega-trends3. OutlookPart 2 Georg Denoke1. Operational Performance & Capex2. Financial Performance & Dividend3. SummaryAppendix 16
  17. 17. Group, financial key indicatorsContinuous EPS-growth EPS adjusted* ROCE adjusted* [€] 7.71 7.89 13.0% 6.89 12.5% 11.5% 4.59 10.4% 2009 2010 2011 2012 2009 2010 2011 2012 Operating Cash Flow ROCE reported [€m] 2,522 11.0% 2,422 2,426 10.3% 10.0% 2,142 7.7% 2009 2010 2011 2012 2009 2010 2011 2012 *(please see definitions on page 42) EPS is only adjusted for the PPA of BOC. 2012 is not adjusted for the PPA-effect of the Homecare acquisitions (€51m) and is not adjusted for impairment impacts (€46m) 17
  18. 18. Gases Division, revenue by operating segmentGrowth continued[€m] EMEA ASIA/PACIFIC AMERICAS Revenue Revenue Revenue 5,672 5,998 +5.7% 3,498 3,076 3,200 +13.7% 2,384 +34.2% +4.1%* +5.0%* +2.8%* 2011 2012 2011 2012 2011 2012 — Growth led by Eastern Europe — Growth in all regions with — Positive development in both and Middle East the highest growth rate in regions — Strongest growth in Tonnage Greater China — Strongest growth in Healthcare — Development supported by — Highest contributions from in both regions Northern European merchant- Bulk and Tonnage — Increase supported LNG-business and Homecare — Positive impact from new by Lincare acquisition acquisition start-ups *excluding currency, natural gas price effect and Lincare 18
  19. 19. Gases Division, operating profit by operating segmentGrowth continued[€m] EMEA ASIA/PACIFIC AMERICAS Operating profit/margin Operating profit/margin Operating profit/margin 1,634 1,700 +4.0% 872 935 768 +7.1% 535 +43.6% 28.8% 28.3% 28.3% 26.7% 22.4% 24.0% 2011 2012 2011 2012 2011 2012 Margin Development — EMEA solid development despite challenging macro-economic environment — Asia/Pacific impacted by structural up-front investments in future growth and plant stoppages — Americas positively supported by price/volume-development and contribution from Lincare 19
  20. 20. Gases Division, revenue by product areas Solid performance in a challenging environment[€m], comparable* (consolidated) +3.8%* 12,591 11,523 Healthcare +14.2%* 2,035 Healthcare 1,230 Including € 630 m of Lincare, the growth rate is 65.4% in Healthcare +4.0%* 2,921 Tonnage 2,809 Tonnage Adjusted for the negative impacts from plant shut downs comparable +2.6%* growth would be 6.1%, including Bulk** 3,296 3,381 joint ventures 7.1% Bulk & Cylinder Softer volume development in the +1.6%* Cylinder** 4,188 4,254 first nine months but improvement visible in Q4 2011 2012 *excluding currency, natural gas price effect and Lincare ** due to changed reporting structure of around € 499 m are shifted from Cylinder to Bulk 20
  21. 21. Gases Division, project pipeline & market opportunities Strong project pipeline Amount of committed projects by on-stream date Development of market opportunities [€m] (12 months forward) ~800 ~800 ~750 ~700 ~200 [€bn] ~150 4.0 4.3 4.2 2.6 avg. 2010 2013E 2014E 2015E 2016E 2010 2011 2012 2013 to 2012 — Around € 2.5 bn of investments are scheduled to — Level of market opportunities stabilising come on-stream in 2013-2016 on a high level — Around 70% of 2013-2016 project amounts — High share of opportunities in are allocated to Growth Markets Growth Markets — Increasing activity in the area — Project pipeline further increased by € 350 m Energy/EnvironmentStatus: 31/12/2012 for projects > € 10 m 21
  22. 22. Gases, capexDevelopment capex/sales ratio 2007-2012capex/sales ratio 15% 15% mid-term: 13% 13% average ~13% plus* 12% 11% ~2,100 capex [€m] 1,901 1,451 1,439 1,326 1,062 1,029 2007 2008 2009 2010 2011 2012 2013 Data 2007-2012 @ actual average fx rates at the end of the respective year * plus: additional potential for mega-projects 22
  23. 23. Engineering Division, key figuresRecord operating profit— Order intake of around USD 600 m for equipment/gas processing plants for shale gas— More than 35% of order intake from Asia/Pacific— Project wins in Tonnage supported order intake and prove the synergetic set-up of Gases and Engineering Order Intake Order Backlog [€m] Revenue[€m] [€m] 2,531 2,561 2,815 3,700 +1.2% +26.0% +2.8% 2,235 3,600 2011 2012 [€m] Operating Profit* 304 312 +2.6% 12.0% 12.2% 2011 2012 31/12 31/12 2011 2012 2011 Sales 2012 *EBITDA incl. share of profit or loss from associates and joint ventures 23
  24. 24. Group, solid financial positionA year of significant investments Net debt Net debt/EBITDA[€bn] 8.5 8.1 [x] 6.4 6.1 2.5 2.6 2.5 5.5 5.1 2.3 1.9 1.6 2008 2009 2010 2011 30/09/ 31/12/ 2008 2009 2010 2011 LTM 31/12/ 2012 2012 30/09/ 2012 2012 — Large-scale acquisitions driver for increase in — Deleveraging process already started in Q4 2012 net debt position — Credit Ratings — Financing at very low interest rates with tight — S&P’s: A/A-1 with stable outlook* credit spreads on a long-term basis — Moody’s: A3/P-2 with stable outlook** — Almost 90% of total financial debt is due beyond 2013 and approx. 50% has a longer maturity * date of latest rating agency publication: 02 November 2012 than 5 years **date of latest rating agency publication: 16 November 2012 24
  25. 25. Group, financial result and tax rate Financial Result [€m] Tax Rate -385 -329 -291 -305 23.9% -280 22.9% 22.1% 23.2% 21.5% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 25
  26. 26. Group, dividendsProposed dividend increase by 8% to € 2.70 [€] 2.70 +8.0% 2.50 +13.6% 2.20 +22.2% +5.9% 1.80 stable 1.80 +13.3% 1.70 +10.0% +9.7% 1.50 +22.6% Change in Operating +5.4% -6.7% Profit +18.1%* 2006 2007 2008 2009 2010 2011 2012 Pay out 13.0% 30.0% 42.0% 51.0% 37.3% 36.5% 40.0% ratio * comparable change: prior year figures including twelve months of BOC 26
  27. 27. Fascinating GasesLinde – Investment Highlights LeadIng Gases and Engineering company Market leader in 4 out 5 Growth Markets Global market leader in Bulk and Cylinder Global leading respiratory healthcare company Superior growth opportunities High share of revenues from and strong investment in Growth Markets Strong engineering expertise and technology portfolio in Energy/Environment Growing and ageing population drives respiratory healthcare growth Resilient business model with sustainable growth Broad revenue spread across all sizes of customers & industries in around 100 countries Long-term take or pay contracts in Tonnage Increased share of revenues from healthcare markets Clear targets and determination to deliver Setting of ambitious mid-term targets Solid financial position Track record to deliver 27
  28. 28. AgendaPart 1 Prof. Dr Wolfgang Reitzle1. Performance 20122. Strategic Focus: — High Performance Organisation — Growth Potential Mega-trends3. OutlookPart 2 Georg Denoke1. Operational Performance & Capex2. Financial Performance & Dividend3. SummaryAppendix 28
  29. 29. Group, solid financial positionConservative financing strategyLong-dated maturity profile further extended Financial debt,— Two Eurobond issues in 2012 at 1.75% with tenors of 7 and 8 years by instrument— Almost 90% of total financial debt is due beyond 2013— Approx. 50% of total financial debt has a longer maturity than 5 years 3% 10% 1% 18% 2%Excellent access to capital markets— Strong investor demand for highly rated issuers with stable and international business profile 67% 15% 64% Financial debt, by maturity [€m] 4,848 4,014 Other bonds Subordinated bonds* 3,300 Bank loans 2,830 Commercial paper 1,262 * callable in 2013/2016 383 521 1,184 1,469 358 79 < 1 year 1 - 5 years > 5 years 29
  30. 30. Group, solid financial position Liquidity position remains strong€ 2.5 bn committed revolving credit facility Central liquidity position— Arranged with 25 national and — Very conservative investment guidelines international banks — Securities at holding level fully invested in AAA— Maturing in 2015 government bonds— No financial covenants— Fully undrawn€ 2.0 bn cash and securities at hand 3,279 [€m] 31/12/2012 2,500 823 1,218 -1,262 Short-term Cash & cash equivalents Current securities Revolving Liquidity reserve* financial debt credit facility** Not taking € 275 m ECP backup into consideration 30
  31. 31. Group, pensions Performance and key figuresNet obligation Pension plan assets portfolio structure[€m] 20% 22% DBO Plan Net asset obligation01/01/2012 5,401 4,842 559Service costs 96 96 64% 61%Net financing 254 240 14Actuarial losses/gains 382 83 299Contributions/payments –253 –93 –160 4% 1% 3% 3%Other 57 61 -4 12% 10%31/12/2012 5,937 5,133 804* 2011 2012 Equities Insurance Fixed-interest securities Other* Figure does not include effects from asset ceiling and provisions for similar obligations Property 31
  32. 32. Group, FY 2012 Key P&L items[€m] 2011 2012 ∆ in %Revenue 13,787 15,280 10.8Operating profit 3,210 3,530 10.0 Margin 23.3% 23.1% -20 bpEBIT before PPA depreciation (BOC only)* 2,152 2,230 3.6PPA depreciation (BOC only) -242 -238 1.7EBIT 1,910 1,992 4.3Financial result -291 -305 -4.8Taxes -375 -363 3.2Profit for the year 1,244 1,324 6.4Profit for the year (attributable to Linde AG shareholders) 1,174 1,250 6.5EPS [€] 6.88 7.03 2.2EPS adjusted [€] 7.71 7.89 2.3* not adjusted for PPA of Homecare acquisitions of € 51 m 32
  33. 33. Group, Q4 2012 Key P&L items[€m] Q4 2011 Q4 2012 ∆ in %Revenue 3,578 4,217 17.9Operating profit 847 967 14.2 Margin 23.7% 22.9% -80 bpEBIT before PPA depreciation (BOC only)* 572 582 1.7PPA depreciation (BOC only) -61 -57 6.6EBIT 511 525 2.7Financial result -76 -65 14.5Taxes -94 -94 -Profit for the year 346 386 11.6Profit for the year (attributable to Linde AG shareholders) 318 346 8.8EPS [€] 1.86 1.88 1.1EPS adjusted [€] 2.03 2.09 3.0* not adjusted for PPA of Homecare acquisitions of € 30 m 33
  34. 34. Gases Division, operating segments Quarterly data[€m] EMEA Q1 2011 Q1 2012 Q2 2011 Q2 2012 Q3 2011 Q3 2012 Q4 2011 Q4 2012 Revenue 1,393 1,445 1,431 1,499 1,434 1,528 1,414 1,526 Operating profit* 395 414 412 420 408 431 419 435 Operating margin 28.4% 28.7% 28.8% 28.0% 28.5% 28.2% 29.6% 28.5% Asia/Pacific Q1 2011 Q1 2012 Q2 2011 Q2 2012 Q3 2011 Q3 2012 Q4 2011 Q4 2012 Revenue 707 808 766 866 810 937 793 887 Operating profit* 196 218 210 235 228 244 238 238 Operating margin 27.7% 27.0% 27.4% 27.1% 28.1% 26.0% 30.0% 26.8% Americas Q1 2011 Q1 2012 Q2 2011 Q2 2012 Q3 2011 Q3 2012 Q4 2011 Q4 2012 Revenue 580 625 593 636 605 889 606 1,050 Operating profit* 136 152 134 160 135 210 130 246 Operating margin 23.4% 24.3% 22.6% 25.2% 22.3% 23.6% 21.5% 23.4%*EBITDA incl. share of profit or loss from associates and joint ventures 34
  35. 35. Group, cash flow statement FY 2012 [€m] Q1 12 Q2 12 Q3 12 Q4 12 2012 2011 Operating profit 808 847 908 967 3,530 3,210 Change in working capital -318 -101 -42 163 -298 -75 Other changes -105 -262 -229 -114 -710 -709 Operating cash flow 385 484 637 1,016 2,522 2,426 Investments in tangibles/intangibles -321 -384 -452 -631 -1,788 -1,376 Acquisitions -627 -2,355 -15 -2,997 -28 Other (incl. financial investments) 40 -4 56 30 122 119 Investment cash flow -281 -1,015* -2,751* -616* -4,663* -1,285* Free cash flow before financing 104 -531 -2,114 400 -2,141 1,141 Interests and swaps, dividends -71 -589 -140 -53 -853 -726 Capital increase 0 0 1,391 0 1,391 0 Other changes -30 41 -463 -9 -461 14 Net debt increase (+)/decrease (-) -3 1,079 1,326 -338 2,064 -429*Excluding investments in/disposals of securities; 2012: €+850 m (Q2 €+553 m, Q3 €+298 m, Q4 €-1 m); 2011: €-1,652 m 35
  36. 36. Gases Division, sales bridgePrice/volume increase of 3.8% [€m] +5.7% 12,591 +3.8%* +4.3% +0% 11,061 2011 Currency Natural Gas Price/Volume Lincare 2012 *including € 195 m changes in consolidation 36
  37. 37. Gases Division, split of capexHigh level of investment in future growthSplit capex by operating segments[€m] — The overall gases capex is used for the 1,901 +32.1% expansion of Tonnage — EMEA: part of the increase of capex from 1,439 778 2011 to 2012 was used for Healthcare +24.1% — In Asia/Pacific most of the capex was 627 allocated to the expansion of Tonnage — € 361 m was invested in the growth 687 region of Greater China 587 +17.0% — In Americas the focus of investments 436 was in the field of merchant business 225 +93.8% 2011 2012 EMEA Asia/Pacific Americas 37
  38. 38. Gases DivisionJoint ventures[€m] Proportionate Revenue Share of Net Income (not incl. in the Group top-line) (contribution to Operating Profit) +17.7% +13.5% 526 101 453 89 2011 2012 2011 2012 38
  39. 39. Engineering DivisionFY 2012 order intake and order backlog By plant type By region Order Intake Order Backlog Order Intake 25.7% 24.8% 28.7% 31.9% EMEA 32.4% 37.7% 21.5% 18.9% 19.1% 20.7% 15.8% 11.4% 28.6% 16.4% 44.1% ASIA/PACIFIC 35.8% 23.4% 26.9% 26.2% 20.4% 13.6% 10.7% 7.3% 8.0% 2011 2012 2011 2012 23.5% AMERICAS 26.5% Air Separation Plants Natural Gas Plants Hydrogen/Synthesis Gas Plants Others 2011 2012 Olefin Plants 39
  40. 40. Clean Energy market estimation 2020 & 2030 top downMarket size [€bn] 2020E 2030E Assumptions for 2030 – 250 projects in commercial phase in 2018 – 2030 Clean Coal – 0.5-0.9 Gt at €30-40 per ton CO2 2-3 15 - 35 – Incl. industrial C02 capture & handling of pipeline CO2 & Gas – Commercial demonstration until 2018 – Use case specific projection of conversion rate for truck, marine, oil & gas industrial and power use of LNG LNG 6 - 10 15 – 30 (substitution of liquid fuels like diesel and propane) – Not included: Chinese market potentially applicable to internat. players – 100 CO2 projects in commercial phase in 2018 – 2030 (also incl. in clean coal & gas) EOR/EGR* 4-5 12 – 25 – 150 N2 projects in commercial phase in 2018 – 2030 – Bottom-up planning of projects until 2018 – Ramp up of serial fuel cell cars and corresponding H2-infrastructure H2 fueling 1 5 – 10 following OEM projections – Specific H2-consumption around 1kg/100 km, i.e. 100-150kg/year & car – Installation of 4-6 large scale GTL-plants based on cheap available GTL 1.5 - 2 3.5 natural gas e.g. from unconventional reserves – Includes gases used for manufacturing of photovoltaic cells Renewables 1 2 – Biomass gasification and liquefaction * Assuming 100% build own operate and excluding sale of Range 15 - 20 50 – 100 equipment and plantsGeneral assumptions:— Market numbers are directional only and w/o inflation or currency— Oil price development at 80-100 USD/bll— Outsourced gases market only (excl. captive market or equipment revenue) 40
  41. 41. GroupBOC PPA – Expected depreciation & amortisation— Development of depreciation and amortisation— Impact in 2012: € 238 million— Expected range adjusted due to exchange rate effectsExpected range [€m] BOC PPA depreciation planning [€m]2013 215 – 225 4002014 200 – 220… 3002022 < 125 200 100 0 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 41
  42. 42. 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 price allocation* Average Equity (incl. minorities) Capital + financial debt Employed + liabilities from finance leases + net pension obligations - cash, cash equivalents and securities - receivables from finance leases adjusted Return Profit for the year (attributable to Linde AG shareholders) + depreciation/amortization from purchase price allocation* EPS +/- special items Shares Weighted average outstanding shares *adjustment for the effects of the purchase price allocation on the acquisition of BOC only 42
  43. 43. Investor RelationsContactPhone: +49 89 357 57 1321Email: investorrelations@linde.comInternet: www.linde.comFinancial calendar— Q1 report 2013: 06 May 2013— Annual General Meeting: 29 May 2013— 6M report 2013: 30 July 2013— 9M report 2013: 29 October 2013 43

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