Performance vs combined Linde + Praxair

% change YoY
  • Corporate Sales
  • Corporate Operating Income
  • Pro forma Sales
  • Pro forma Operating Income
,Corporate Sales,Corporate Operating Income,Pro forma Sales,Pro forma Operating Income 2014 Q1,5.2%,7.3%,null,null 2014 Q2,2.6%,2.6%,null,null 2014 Q3,3.5%,3.2%,null,null 2014 Q4,-1.7%,-10.3%,null,null 2015 Q1,-9.8%,-10.7%,null,null 2015 Q2,-9.3%,-19.2%,null,null 2015 Q3,-14.1%,-15.7%,null,null 2015 Q4,-13.2%,-11.5%,null,null 2016 Q1,-6.6%,-7.9%,null,null 2016 Q2,-5.8%,7.3%,null,null 2016 Q3,-0.6%,-9.7%,null,null 2016 Q4,2.1%,0.9%,null,null 2017 Q1,4.6%,1.9%,null,null 2017 Q2,1.9%,0.8%,null,null 2017 Q3,4.6%,20.7%,null,null 2017 Q4,5.1%,10.5%,null,null 2018 Q1,7.8%,23.0%,null,null 2018 Q2,8.9%,15.6%,null,null 2018 Q3,1.7%,2.8%,null,null 2018 Q4,0.0%,3.6%,null,null 2019 Q1,-15.0%,-13.9%,-0.4%,1.9% 2019 Q2,-14.0%,-10.9%,0.4%,5.9% 2019 Q3,-14.1%,1.5%,0.7%,16.5% 2019 Q4,-11.3%,-1.7%,0.8%,16.5% 2020 Q1,-2.5%,10.0%,null,null 2020 Q2,-11.5%,-0.2%,null,null 2020 Q3,-2.0%,9.5%,null,null
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Q3 group sales at $6.85Bn were up +7½% sequentially to be down -2% lower YoY (on a reported basis)

Group Operating Income at $1.52Bn was up strongly sequentially and was up +9½% YoY – driven by broad based price improvement and continued progress on productivity

Operating Cash Flow again increased sequentially by +1% and +9% YoY

Gases regions represent 84% of global sales while Engineering accounts for 10%. ‘Other’ business includes small global gas related businesses in Global Helium and Electronic Materials as well as non-gas businesses such as Technologies and GIST Distribution



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Margin vs combined Linde + Praxair

% change YoY
  • Old Linde + Praxair margin
  • New Linde plc margin
,Old Linde + Praxair margin,New Linde plc margin 2014 Q1,16.2%,null 2014 Q2,16.6%,null 2014 Q3,16.1%,null 2014 Q4,15.6%,null 2015 Q1,16.0%,null 2015 Q2,14.8%,null 2015 Q3,15.8%,null 2015 Q4,15.9%,null 2016 Q1,15.8%,null 2016 Q2,16.8%,null 2016 Q3,14.4%,null 2016 Q4,15.8%,null 2017 Q1,15.4%,null 2017 Q2,16.7%,null 2017 Q3,16.6%,null 2017 Q4,16.6%,null 2018 Q1,17.5%,17.4% 2018 Q2,17.7%,17.4% 2018 Q3,16.8%,17.1% 2018 Q4,17.2%,17.2% 2019 Q1,17.8%,17.8% 2019 Q2,18.3%,18.3% 2019 Q3,19.8%,19.8% 2019 Q4,null,19.0% 2020 Q1,null,20.1% 2020 Q2,null,20.7% 2020 Q3,null,22.1%
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Group Operating Margin rose to over 22% in Q3 and continued its upward trend to a new peak and compares with an average of around 16% for the combined Linde and Praxair over the pre-merger years 

Cost reduction and other charges were nearly $50m in Q3, over half of which in EMEA. Group SG&A costs were again down significantly at -10% YoY 

R&D costs remained at around 0.5% of sales

Reported After tax ROC up sequentially to nearly 13% up 160bp YoY



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Gases Revenue Growth Drivers

% change YoY
  • Reported Growth
  • Natural Gas
  • Currency
  • Acquisition/Divest
  • Underlying Growth
,Reported Growth,Natural Gas,Currency,Acquisition/Divest,Underlying Growth 2014 Q1,0.5%,0.9%,-5.2%,0.8%,4.1% 2014 Q2,-0.6%,0.0%,-4.0%,0.4%,2.9% 2014 Q3,3.2%,-0.2%,-1.0%,0.0%,4.4% 2014 Q4,1.8%,-0.1%,-0.2%,0.0%,2.1% 2015 Q1,1.4%,-2.0%,2.4%,0.1%,1.0% 2015 Q2,2.1%,-1.8%,2.5%,0.4%,1.0% 2015 Q3,-1.9%,-1.5%,-1.4%,0.4%,0.6% 2015 Q4,-2.3%,-1.4%,-1.8%,0.8%,0.2% 2016 Q1,-4.3%,-1.0%,-4.6%,0.7%,0.6% 2016 Q2,-3.9%,-0.9%,-4.6%,1.4%,0.2% 2016 Q3,-1.9%,0.0%,-1.8%,0.9%,-1.0% 2016 Q4,2.3%,0.5%,-0.9%,0.8%,2.0% 2017 Q1,6.4%,1.5%,2.5%,-0.2%,2.7% 2017 Q2,3.6%,1.4%,0.8%,-0.6%,1.9% 2017 Q3,2.6%,0.6%,-1.6%,0.5%,3.1% 2017 Q4,2.0%,0.2%,-2.3%,0.0%,4.1% 2018 Q1,0.4%,0.2%,-3.7%,0.0%,3.9% 2018 Q2,3.0%,0.2%,-2.6%,0.0%,5.3% 2018 Q3,3.6%,0.6%,-2.8%,0.0%,5.7% 2018 Q4,3.3%,0.9%,-0.6%,-1.1%,4.2% 2019 Q1,-12.0%,0.9%,-4.8%,-12.5%,4.5% 2019 Q2,-13.1%,0.0%,-4.1%,-12.3%,3.3% 2019 Q3,-14.4%,-1.2%,-2.6%,-13.5%,2.9% 2019 Q4,-16.6%,-1.6%,-1.5%,-15.2%,1.7% 2020 Q1,-1.2%,-1.0%,-2.4%,0.0%,2.1% 2020 Q2,-13.1%,-1.0%,-4.3%,-0.7%,-7.0% 2020 Q3,-2.0%,0.0%,-0.8%,-1.0%,-0.3%
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Reported gas sales were deteriorated again to be down nearly        -2% YoY in Q2

Negative impacts of nearly -1% from currency (with a negative impact in Americas almost offset by positive contributions in Asia Pacific and Europe) was matched by a similar negative impact from net acquisitions/divestments (in Europe and Americas)

Energy cost pass-through impact was flat in all three geographies



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Gases Underlying Growth Drivers

% change YoY
  • Total Underlying Growth
  • Volume
  • Price
,Total Underlying Growth ,Volume,Price 2014 Q1,4.1%,2.8%,1.3% 2014 Q2,2.9%,2.2%,0.7% 2014 Q3,4.4%,2.9%,1.5% 2014 Q4,2.1%,1.3%,0.8% 2015 Q1,1.0%,0.9%,0.1% 2015 Q2,1.0%,0.5%,0.4% 2015 Q3,0.6%,0.1%,0.5% 2015 Q4,0.2%,-0.3%,0.5% 2016 Q1,0.6%,0.4%,0.2% 2016 Q2,0.2%,0.3%,-0.1% 2016 Q3,-1.0%,-1.1%,0.1% 2016 Q4,2.0%,1.9%,0.1% 2017 Q1,2.7%,3.3%,-0.6% 2017 Q2,1.9%,2.6%,-0.7% 2017 Q3,3.1%,3.6%,-0.5% 2017 Q4,4.1%,4.7%,-0.5% 2018 Q1,3.9%,3.2%,0.7% 2018 Q2,5.3%,4.0%,1.4% 2018 Q3,5.7%,4.1%,1.6% 2018 Q4,4.2%,2.9%,1.3% 2019 Q1,4.5%,2.8%,1.7% 2019 Q2,3.3%,1.0%,2.3% 2019 Q3,2.9%,0.7%,2.2% 2019 Q4,1.7%,-0.5%,2.2% 2020 Q1,2.1%,-0.4%,2.4% 2020 Q2,-7.0%,-8.4%,1.5% 2020 Q3,-0.3%,-2.3%,2.0%
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The YoY decline in underlying growth in gases sales slowed sharply in Q3 to be down less than –½% –  reflecting reduced global economic impacts of Covid

Volume impact remained significantly negative YoY at -2½% while pricing was again over +2% YoY, close to its highest rate in recent years

‘Other business’ including some global gases businesses down     -12% in Q3 

Americas accounts for nearly half of global gas sales with around a quarter each from EMEA and Asia Pacific  



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Americas Underlying Growth

% growth vs Previous year
  • Linde Total
  • Praxair Total
  • Praxair volume
  • New Linde plc Total
  • New Linde plc volume
,Linde Total,Praxair Total,Praxair volume,New Linde plc Total,New Linde plc volume 2014 Q1,4.2%,5.1%,3.6%,null,null 2014 Q2,3.4%,5.0%,3.0%,null,null 2014 Q3,5.3%,2.0%,1.4%,null,null 2014 Q4,5.5%,2.0%,1.6%,null,null 2015 Q1,5.2%,1.0%,-0.2%,null,null 2015 Q2,8.8%,-1.0%,-2.4%,null,null 2015 Q3,10.9%,-3.0%,-4.0%,null,null 2015 Q4,5.9%,-3.0%,-4.4%,null,null 2016 Q1,1.8%,-4.0%,-4.4%,null,null 2016 Q2,-0.2%,-1.0%,-1.4%,null,null 2016 Q3,-6.9%,0.0%,-0.4%,null,null 2016 Q4,2.3%,-2.0%,-1.2%,null,null 2017 Q1,-2.6%,4.0%,2.4%,null,null 2017 Q2,-9.8%,4.0%,0.8%,null,null 2017 Q3,-2.6%,4.0%,2.8%,null,null 2017 Q4,-6.6%,9.0%,7.0%,null,null 2018 Q1,1.0%,6.0%,3.4%,null,null 2018 Q2,5.2%,6.0%,4.0%,null,null 2018 Q3,7.0%,7.0%,3.8%,null,null 2018 Q4,null,2.6%,1.8%,null,null 2019 Q1,null,null,null,5.0%,3.0% 2019 Q2,null,null,null,4.0%,1.0% 2019 Q3,null,null,null,5.0%,2.0% 2019 Q4,null,null,null,3.0%,1.0% 2020 Q1,null,null,null,4.0%,2.0% 2020 Q2,null,null,null,-7.0%,-9.0% 2020 Q3,null,null,null,0.0%,-2.0%
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USA accounts for over 70% ($6.8Bn) of Americas sales with Brazil, Mexico and Canada each around 7-10% (over $700m)

Q3 saw a recovery in Americas underlying growth  to be marginally positive at +½% driven by a volume fall of -2% (despite +8% sequentially) offset by a positive price/mix impact again at +2%

Metals and manufacturing (15% and 11% of region sales respectively versus 33% in Healthcare and 20% in Chemicals & Refining) were again the most significant markets in terms of volume declines YoY



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EMEA Underlying Growth

% growth vs Previous year
  • Linde Total
  • Praxair Total
  • Praxair volume
  • New Linde plc Total
  • New Linde plc volume
,Linde Total,Praxair Total,Praxair volume,New Linde plc Total,New Linde plc volume 2014 Q1,1.2%,2.0%,1.0%,null,null 2014 Q2,-0.2%,1.0%,0.0%,null,null 2014 Q3,1.4%,2.0%,1.0%,null,null 2014 Q4,-2.0%,-1.0%,-1.0%,null,null 2015 Q1,-1.6%,1.0%,0.0%,null,null 2015 Q2,-1.4%,-1.0%,-1.0%,null,null 2015 Q3,-1.8%,3.0%,3.0%,null,null 2015 Q4,0.0%,4.0%,3.0%,null,null 2016 Q1,-0.2%,2.0%,2.0%,null,null 2016 Q2,-0.2%,4.0%,3.0%,null,null 2016 Q3,-2.0%,0.0%,0.0%,null,null 2016 Q4,2.0%,1.0%,1.0%,null,null 2017 Q1,4.4%,6.0%,6.0%,null,null 2017 Q2,1.4%,5.0%,4.0%,null,null 2017 Q3,2.9%,5.0%,4.0%,null,null 2017 Q4,2.9%,5.0%,5.0%,null,null 2018 Q1,3.0%,3.0%,2.0%,null,null 2018 Q2,5.4%,5.0%,2.0%,null,null 2018 Q3,3.3%,4.0%,1.0%,null,null 2018 Q4,null,0.0%,-1.0%,null,null 2019 Q1,null,null,null,1.0%,0.0% 2019 Q2,null,null,null,1.0%,-1.0% 2019 Q3,null,null,null,2.0%,0.0% 2019 Q4,null,null,null,1.0%,-2.0% 2020 Q1,null,null,null,1.0%,-1.0% 2020 Q2,null,null,null,-6.0%,-7.0% 2020 Q3,null,null,null,-1.0%,-4.0%
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Within Europe/M.East/Africa, Germany accounts for over 20% ($1.2Bn) of region sales with UK and Eastern Europe each around 12-16% (over $700m) with Rest of Europe sales of $2.4Bn and M.East/Africa nearly $500m 

EMEA underlying growth remained negative YoY but narrowed to  -1% although up +5% sequentially

Volume contribution was again negative at -4% in Q3 - while positive pricing impact rose again to +3%

Lower volumes across all markets except healthcare and electronics (17% and 2% of region sales respectively)



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Asia Pacific Underlying Growth

% growth vs Previous year
  • Linde Total
  • Praxair Total
  • Praxair volume
  • New Linde plc Total
  • New Linde plc volume
,Linde Total,Praxair Total,Praxair volume,New Linde plc Total,New Linde plc volume 2014 Q1,4.6%,11.0%,9.0%,null,null 2014 Q2,6.2%,6.0%,5.0%,null,null 2014 Q3,5.4%,11.0%,10.0%,null,null 2014 Q4,2.6%,6.0%,5.0%,null,null 2015 Q1,0.0%,1.0%,1.0%,null,null 2015 Q2,-0.8%,1.0%,1.0%,null,null 2015 Q3,-2.5%,6.0%,5.0%,null,null 2015 Q4,-1.1%,4.0%,4.0%,null,null 2016 Q1,3.5%,5.0%,6.0%,null,null 2016 Q2,-0.5%,5.0%,6.0%,null,null 2016 Q3,0.3%,1.0%,2.0%,null,null 2016 Q4,3.9%,5.0%,6.0%,null,null 2017 Q1,4.9%,8.0%,9.0%,null,null 2017 Q2,5.7%,11.0%,10.0%,null,null 2017 Q3,8.3%,15.0%,13.0%,null,null 2017 Q4,7.9%,14.0%,11.0%,null,null 2018 Q1,4.6%,14.0%,11.0%,null,null 2018 Q2,4.0%,14.0%,11.0%,null,null 2018 Q3,6.7%,9.0%,7.0%,null,null 2018 Q4,null,7.0%,7.0%,null,null 2019 Q1,null,null,null,7.0%,5.0% 2019 Q2,null,null,null,5.0%,3.0% 2019 Q3,null,null,null,0.0%,-1.0% 2019 Q4,null,null,null,0.0%,-2.0% 2020 Q1,null,null,null,-3.0%,-5.0% 2020 Q2,null,null,null,-8.0%,-9.0% 2020 Q3,null,null,null,0.0%,-1.0%
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China & Taiwan sales (combined $1.9Bn) account for 40% of Asia Pacific sales followed by Australia (over $900m), S.Korea and India (each nearly $500m). Electronics market accounts for 25% of sales in this region – higher than other regions

Asia Pacific underlying growth flat YoY in Q3 but up +10% sequentially

Negative volume impact reduced to -1% YoY and offset by pricing/mix impact again at +1% in Q3

Volume growth seen in two largest markets in Electronics (25% of region sales) and Chemicals & Refining (21%) offset by Manufacturing market (17%)



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Total Sales by Business

% change YoY
  • Total
  • Onsites
  • All Merchant
  • Liquid Bulk
  • Packaged
,Total,Onsites,All Merchant,Liquid Bulk,Packaged ,-2.7%,-6.6%,-1.2%,2.6%,-3.7% ,-13.3%,-16.3%,-12.1%,-15.3%,-9.9% ,-2.0%,-2.2%,-1.9%,-2.1%,-1.7%
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Over 40% of Linde plc global gas sales are in packaged gases with nearly 30% in liquid bulk (giving total combined merchant sales of over 70%) and over a quarter in onsites 

Fall in reported global onsite sales YoY reduced to -2% YoY in Q3 – driven by volumes with cost pass-through impact appearing to be relatively flat

Merchant (Spiritus definition) saw reduced downturn in Q3 at just over -2% YoY with both liquid bulk and packaged gases showing similar falls



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Americas Sales by Business

% change YoY
  • Americas
  • Onsites
  • All Merchant
  • Liquid Bulk
  • Packaged
,Americas,Onsites,All Merchant,Liquid Bulk,Packaged ,-0.9%,-7.5%,0.5%,3.1%,-0.9% ,-13.0%,-20.0%,-10.0%,-13.7%,-8.0% ,-4.7%,-8.0%,-2.9%,-2.8%,-2.9%
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Nearly half of Linde plc Americas gas sales are in packaged gases with nearly 30% in liquid bulk (giving total combined merchant sales of nearly 75%) and a quarter in onsites 

Within merchant (Spiritus definition) both liquid bulk and packaged gases showed similar sales declines of nearly -3% in Q3

With pricing up by +2-3% this implies merchant volume declines down -5-6% in this region

Sharp fall in reported onsite sales (-8% YoY) in Q3 driven by negative volumes



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Europe Sales by Business

% change YoY
  • Europe
  • Onsites
  • All Merchant
  • Liquid Bulk
  • Packaged
,Europe,Onsites,All Merchant,Liquid Bulk,Packaged ,-2.9%,-9.0%,-1.5%,10.1%,-7.2% ,-13.4%,-14.4%,-14.0%,-12.8%,-14.6% ,-0.7%,-3.2%,-1.4%,-0.4%,-2.0%
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Around half of Linde plc European gas sales are in packaged gases with nearly 30% in liquid bulk (giving total combined merchant sales of nearly 80%) compared with only marginally over 20% in onsites 

Within merchant (Spiritus definition) bulk sales down by –½% and packaged gases by -2% in Q3

With merchant pricing up +3-4% higher YoY in Q3 this implies continued significant weakness in merchant volumes 

Fall in reported onsite sales reduced to over -3% YoY in Q3 – primarily driven by lower volumes



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Asia Pacific Sales by Business

% change YoY
  • AsiaPacific
  • Onsites
  • All Merchant
  • Liquid Bulk
  • Packaged
,AsiaPacific,Onsites,All Merchant,Liquid Bulk,Packaged ,-6.4%,-3.7%,-7.4%,-7.6%,-7.0% ,-14.4%,-12.7%,-12.4%,-16.7%,-6.2% ,1.1%,6.2%,1.7%,0.6%,3.3%
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Around 35% of Linde plc Asia Pacific gas sales are in onsites with a similar proportion in liquid bulk and close to a quarter in packaged gases (giving total combined merchant sales of slightly over 60%)

Significant return to growth seen in Q3 in reported sales in all major businesses for this region

Driven by return to solid growth in onsites at +6% YoY indicating continued higher volumes

Within merchant (Spiritus definition) significant recovery seen in packaged gases at over +3% combined with marginal turnaround in liquid bulk at +½%. With merchant pricing up more than +3% it appears that volumes were flat or lower YoY in Q3

Total sales growth for the region is lower than combined onsites and merchant due to a sharp decline in the small business in ‘other’ gases



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Profit Profile

$M
  • Americas gases
  • EMEA gases
  • APAC gases
  • Engineering
  • Other
,Americas gases,EMEA gases,APAC gases,Engineering,Other ,742,337,370,106,-40
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Americas gases is the major source of profits for Linde plc accounting for nearly half of group operating income with APAC and EMEA each around a quarter

Gases operating income at $1.45Bn in Q3 was up +10% YoY - all three geographic regions in gases showed YoY growth in operating Income around this overall global rate.  Engineering showed an underling decline of -10% driven by project and productivity performance

Group operating margin in Q3 rose to over 22% with regional Gases businesses reporting a combined margin over 25% – both of these are up by over 200bp YoY. Engineering margin slipped back sequentially and YoY towards 15% in Q3 



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Americas Operating Margin

%
  • Old Praxair
  • Old Linde
  • New Linde plc pro forma
,Old Praxair,Old Linde,New Linde plc pro forma 2014 Q1,23.7%,12.5%,null 2014 Q2,23.9%,11.0%,null 2014 Q3,24.7%,11.6%,null 2014 Q4,23.9%,12.9%,null 2015 Q1,24.4%,13.9%,null 2015 Q2,25.1%,13.5%,null 2015 Q3,25.2%,14.3%,null 2015 Q4,26.8%,12.9%,null 2016 Q1,24.3%,13.4%,null 2016 Q2,24.3%,13.8%,null 2016 Q3,23.8%,11.1%,null 2016 Q4,24.2%,15.9%,null 2017 Q1,22.2%,12.4%,null 2017 Q2,23.5%,11.8%,null 2017 Q3,23.7%,11.6%,null 2017 Q4,23.9%,11.8%,null 2018 Q1,23.9%,12.8%,22.3% 2018 Q2,25.1%,16.9%,23.7% 2018 Q3,24.6%,14.4%,23.7% 2018 Q4,24.0%,null,22.7% 2019 Q1,null,null,21.6% 2019 Q2,null,null,23.2% 2019 Q3,null,null,24.2% 2019 Q4,null,null,24.7% 2020 Q1,null,null,24.7% 2020 Q2,null,null,25.7% 2020 Q3,null,null,28.1%
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Operating Margin in the Americas rose again to over 28% in Q3, exceeding the historic peak performance of Praxair in this region in 2015 – an increase of around 400bp YoY

Highest performing regional gas business for Linde plc

Margin expansion again led by pricing and productivity initiatives

Much of the former Linde business in the region has been divested, dampening its adverse impact on the combined region’s performance



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EMEA Operating Margin

%
  • Old Praxair
  • Old Linde
  • New Linde plc pro forma
,Old Praxair,Old Linde,New Linde plc pro forma 2014 Q1,19.9%,18.3%,null 2014 Q2,19.1%,19.5%,null 2014 Q3,18.4%,18.9%,null 2014 Q4,17.7%,17.2%,null 2015 Q1,19.0%,18.5%,null 2015 Q2,19.0%,19.6%,null 2015 Q3,18.6%,17.5%,null 2015 Q4,19.1%,17.7%,null 2016 Q1,19.4%,18.6%,null 2016 Q2,19.2%,19.8%,null 2016 Q3,19.7%,18.2%,null 2016 Q4,20.2%,17.3%,null 2017 Q1,18.8%,19.1%,null 2017 Q2,19.3%,19.3%,null 2017 Q3,19.4%,20.1%,null 2017 Q4,19.7%,20.5%,null 2018 Q1,18.7%,23.1%,21.3% 2018 Q2,19.6%,18.3%,19.9% 2018 Q3,19.1%,16.8%,18.2% 2018 Q4,23.1%,null,17.4% 2019 Q1,null,null,20.6% 2019 Q2,null,null,19.8% 2019 Q3,null,null,20.5% 2019 Q4,null,null,21.3% 2020 Q1,null,null,21.7% 2020 Q2,null,null,20.9% 2020 Q3,null,null,22.8%
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Operating Margin in the EMEA region returned to its rising trend in Q3 approaching 23%, similar to Linde AG’s previous peak

Much of the former Praxair business in the region has been divested although there had been little difference in the overall profit performance between the two businesses historically until late-2018



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Asia Pacific Operating Margin

%
  • Old Praxair
  • Old Linde
  • New Linde plc pro forma
,Old Praxair,Old Linde,New Linde plc pro forma 2014 Q1,19.1%,12.0%,null 2014 Q2,19.3%,13.4%,null 2014 Q3,17.6%,12.1%,null 2014 Q4,18.9%,13.1%,null 2015 Q1,18.6%,10.4%,null 2015 Q2,17.8%,12.8%,null 2015 Q3,19.5%,11.7%,null 2015 Q4,18.6%,11.0%,null 2016 Q1,16.8%,12.2%,null 2016 Q2,17.0%,12.2%,null 2016 Q3,17.4%,13.3%,null 2016 Q4,19.7%,13.1%,null 2017 Q1,19.0%,11.5%,null 2017 Q2,19.0%,12.8%,null 2017 Q3,19.5%,14.4%,null 2017 Q4,19.1%,11.9%,null 2018 Q1,21.8%,15.0%,17.7% 2018 Q2,21.3%,16.7%,17.9% 2018 Q3,22.6%,17.3%,16.6% 2018 Q4,23.2%,null,17.0% 2019 Q1,null,null,19.1% 2019 Q2,null,null,20.4% 2019 Q3,null,null,21.1% 2019 Q4,null,null,21.3% 2020 Q1,null,null,21.0% 2020 Q2,null,null,22.7% 2020 Q3,null,null,22.7%
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Operating Margin in Asia Pacific continued its trend sequentially at over 22½% in Q3 and was up over 150bp YoY

This performance is similar to the peak of Praxair historically in this region and above that of Linde AG

Region performance includes the impact of required divestments of several businesses, particularly significant parts of Linde S.Korea and Praxair in India



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Capital Expenditure

$M
  • Old Praxair
  • Old Linde
,Old Praxair,Old Linde 2013 Q1,447.4,606.9 2013 Q2,501.1,689.5 2013 Q3,495.4,798.7 2013 Q4,495.4,907.5 2014 Q1,377.3,542.5 2014 Q2,368.6,564.4 2014 Q3,412.8,563.8 2014 Q4,462.7,821.5 2015 Q1,381.1,319.8 2015 Q2,337.9,493.8 2015 Q3,388.8,526.1 2015 Q4,371.5,758.0 2016 Q1,310.1,330.0 2016 Q2,342.7,443.8 2016 Q3,361.0,456.9 2016 Q4,392.6,606.9 2017 Q1,313.9,385.5 2017 Q2,312.0,399.3 2017 Q3,307.2,470.2 2017 Q4,325.4,736.2 2018 Q1,312.0,425.1 2018 Q2,337.0,535.2 2018 Q3,364.8,469.8 2018 Q4,436.8,696.1 2019 Q1,null,843.0 2019 Q2,null,865.0 2019 Q3,null,959.0 2019 Q4,null,1015.0 2020 Q1,null,803.0 2020 Q2,null,783.0 2020 Q3,null,787.0
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Linde capital expenditure remains at around $800m, its lowest level since the merger – however this broadly reflects project timing profiles

Project capex was flat sequentially at over $330m in Q3 and was down by a third YoY – in contrast base capex (mainly support equipment and smaller projects) was marginally up YoY at over $450m

Sale of gas (Onsites) backlog rose slightly to $3.7Bn – over 70% in APAC and over 20% in Americas while nearly 60% is for refining, 20% for electronics and 10% for chemicals. Sale of Equipment backlog also fell again marginally to $4.9Bn maintaining a total backlog of around $9.5Bn. SOE order intake also rose sequentially towards $500m but was substantially down YoY due to project timing and mix

Capex forecast range for CY2020 lowered/narrowed at $3.0-3.2Bn

Started up 5 new plants in Q3 and also signed 4 new projects 

Signed long term agreement for UHP gas supply for Samsung’s new semiconductor facilities in Pyeongtaek, S.Korea



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Capex/Sales ratio

%
  • Old Praxair
  • Old Linde
,Old Praxair,Old Linde 2013 Q1,16.4%,13.3% 2013 Q2,17.6%,14.7% 2013 Q3,17.4%,17.3% 2013 Q4,17.4%,19.3% 2014 Q1,13.2%,11.8% 2014 Q2,12.5%,11.9% 2014 Q3,13.9%,11.9% 2014 Q4,16.4%,18.4% 2015 Q1,14.7%,7.7% 2015 Q2,13.1%,11.2% 2015 Q3,15.3%,12.4% 2015 Q4,15.2%,18.2% 2016 Q1,13.1%,8.3% 2016 Q2,13.6%,10.6% 2016 Q3,14.1%,11.1% 2016 Q4,15.7%,14.5% 2017 Q1,12.2%,9.5% 2017 Q2,11.6%,9.6% 2017 Q3,11.1%,10.9% 2017 Q4,11.6%,16.7% 2018 Q1,11.0%,9.9% 2018 Q2,11.7%,12.2% 2018 Q3,12.8%,10.9% 2018 Q4,15.8%,15.4% 2019 Q1,null,14.5% 2019 Q2,null,14.6% 2019 Q3,null,16.3% 2019 Q4,null,17.5% 2020 Q1,null,14.2% 2020 Q2,null,15.2% 2020 Q3,null,13.7%
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Capex to sales ratio moved back below 15% - above the trend for the combined businesses over the previous five years

This ratio appears close to the underlying average of Tier 1 companies  

Healthy pipeline of potential opportunities for decaps (acquisition of customer owned tonnage plants) as competitors also indicate. Continuing to look at further packaged gases and healthcare acquisitions – larger acquisitions delayed by Covid

Continues to look at JVs and divesting some smaller country positions as part of portfolio management

Significant interest in long term H2/energy opportunities but indicates economics need to change significantly before opportunity fully impacts – H2 for mobility most realistic near term opportunity



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