Analysts Conference, March 27, Analysts Conference 2003 Seite 1

Transcription

1 Analysts Conference, March 27, 2003 Analysts Conference 2003 Seite 1

2 Linde Group FY 2002 Slight decline in sales due to drop in domestic sales Drop in EBITA compensated by lower interest charge and reduced tax rate Income from the sale of Dresdner Bank stake (165 million ) offset by significant one-off expenses 240 million earnings in line with last year (241 million ) Net debt ex pension provisions decreased by 494 Mio. to 3,313 million Seite 2 2

3 Linde Group Sales by regions (Total 8,726 million ) 4,362 4,449 million 2,196 1,994 1,675 1, Germany Rest of Europe Americas Asia Africa/Australia Seite 3 3

4 Linde Group Maintained leading market position in all business fields Linde Gas Europe 1 World 5 Linde Engineering Market Leader* Material Handling Refrigeration Seite 4 4

5 Linde Group Income Statement Interestresultimproved Tax rate lower due to Dresdner Bank sale in million Sales 8,833 8, % Sales ex currencies % EBITDA 1,519 1, % EBITA % Goodwill % EBIT Financial result EBT Taxes on income Minority interests Net income % % % % % Seite 5 5

6 Linde Group Strong cashflow (+14.3 %) Investment discipline has led to reduced capex (incl. financial assets) Capital employed reduced by 767 million in million Earnings per share % Earnings per share pre goodwill % Cash flow from operating activities Cash flow per share Capex 1,115 1, % % % Capital employed* 9,757 8, % Change in working capital ROCE 7.9 % 7.0 % * Average figure incl. pension liabilities Seite 6 6

7 Linde Group Financial situation Improvedinterestcoverageratio Lower gearing in million EBITDA Net interest expense EBITDA / Net interest expense Net debt Equity, minority interests Capital employed* Net debt / capital employed Net debt / EBITDA Gearing , ,807 4,356 8, % , ,313 4,119 7, % * Year end figure ex pension liabilities Seite 7 7

8 Linde Group Conversion of ROCE - Group old EBTA +Interest expenses new +Interest expenses for pensions EBTA +Interest expenses ROCE = + Pension Provisions Capital employed Capital employed Seite 8 8

9 Linde Group Conversion of ROCE - Divisions old EBITA new +Interest expenses for pensions EBITA ROCE = +Pension provisions +Goodwill Operating Capital employed Operating Capital employed Seite 9 9

10 Linde Group ROCE in Comparison 2001 (old) 2001 (new) 2002 Linde Gas 18.7% 9.1% 9.6% Linde Engineering 26.6% 14.9% 13.3% Material Handling 19.1% 13.1% 8.7% Refrigeration 7.5% 4.2% 5.1% Group 9.0% 7.9% 7.0% Seite 10 10

11 Linde Group Pension obligations- 2 different systems Internally financed pension obligations I Mainly in Germany Gross Obligation (DBO): 1,015 mio II Externally funded pension obligations Mainly in the USA, UK, CH, N, NL and FIN Gross Obligation (DBO): 794 mio Plan Assets: 653 mio Seite 11 11

12 Linde Group Pension obligations Net Obligation: 1,156 million in million Defined Benefit Obligation Of which internally financed Of which externally funded Fair value of Plan assets Net Obligation Unrecognized actuarial losses Limitation (IAS 19.58) Provision in balance sheet at ,809 1, , ,023 Seite 12 12

13 Gas and Engineering Seite 13 13

14 Gas and Engineering Higher sales Improved operating profit in million Sales EBITDA EBITA ,835 4, % 1,104 1, % % Seite 14 14

15 Linde Gas FY 2002 Stagnating sales due to currency & natural gas price effects Limited profit increase due to one- off items, currencies, shift in the portfolio and higher R&D & start- upcost for INO Outlook Future growth driven by healthcare and on- site business Cost reduction of 150 million until 2004 Seite 15 15

16 Linde Gas Ex currency and natural gas price effects plus 4.4 % in sales Slight improvement of operating profit Capex ratio down to 10.6 % (previous year 11.6 %) in million Sales 3,875 3, % Sales (ex currencies & natural gas) % EBITDA 1,037 1, % Margin 26.8 % 26.6 % EBITA % Capital employed 6,782 6, % ROCE 9.1 % 9.6 % Cashflow % Capex % Seite 16 16

17 Linde Gas FY Good performance in selected growth segments Hydrogen sales decreased from 249 to 242 million - Ex natural gas price effects, sales rose by 13% Helium sales increased from 54 to 59 million, plus 9.3% - Joint Venture with Sonatrach in Algeria gives Linde access to its own helium source from 2005 on Seite 17 17

18 Healthcare FY 2002 Growth of 7.4 % ( % ex currency) EBITA in the range of 20% - plus 10.3 % in 2002 (+ 17 % ex currency) Outlook Strong sales growth ahead Higher R & D costs in million e Institutional Care / Homecare > 670 INO > 240 GEMI, LMS 4 5 > 40 Total Sales > 950 Seite 18 18

19 Healthcare Institutional / Homecare 464 million sales in 2002 Institutional (approx. 5 % annual growth rate est.) - Enhancement of marketing, sales & service efficiency - Differentiation by offering added value to doctors & pharmacists - Focus on therapies Homecare (approx. 20 % annual growth rate est.) - Improvement of service & operations - Focus on therapies Institutional/Homecare 81 % - Further growth driven by smaller aquisitions Seite 19 19

20 Healthcare INO 102 million sales in 2002 (+ 26 %, ex currency + 32 %) INO 18 % Revised sales expectations due to - slow start in Europe - one-year delay in the roll-out of new products Annual growth of appx. 25 % for the upcoming 2 years e sales: > 120 million e sales: > 150 million Further Jump in sales expected starting driven by new applications Seite 20 20

21 Linde Engineering FY 2002 Order intake plus 24.2% Cooperation with BOC starts to pay off Outlook Order situation points to promising future sales Low risk profile Seite 21 21

22 Linde Engineering Flat operating profit Stable margin in million Sales EBITDA EBITA (incl. interest income) Margin Capital employed ROCE Cashflow Capex , % % , % % % 5.1 % % 13.3 % % Seite 22 22

23 Linde Engineering Leading market positions in most activities - market share in Natural Gas with exp. overproportionate growth - Olefins 27 % 2,200 mio 600 mio Total Market Volume in % 1,250 mio 320 mio 15% Hydrogen / Syngas / Gas Natural Gas 3, Mill mio 7 % mio Total 7,380 mio 250 mio Air Separation % 430 mio 200 mio Seite 23 23

24 Linde Engineering New Projects Order intake % Strong demand across all segments in million Olefins Natural Gas Syngas Air Separation Others TOTAL Seite 24 24

25 Material Handling Seite 25 25

26 Material Handling FY 2002 Lower sales caused by market decline Market pressure and lower utilization rate hurt profitability Outlook Significant restructuring measures needed for sustainable earnings recovery Seite 26 26

27 Material Handling Operating profit declined by 38.3 % Reduced Capex, higher Cashflow in million Sales EBITDA EBITA Margin Capital employed ROCE Cashflow Capex Of which Rental Business , % 2, % , % % % 5.0 % 1, % 8.7 % % % % Seite 27 27

28 Material Handling TRIM.100 Optimization of the brand alliance Linde Still OM Komatsu Optimization Marketing Location Logistics of purchasing and distribution Optimization Optimization across all brands Optimization across the two groups and all brands Positioning of brands Purchasing Component overlap Location strategy Spare part logistics Seite 28 28

29 Refrigeration Seite 29 29

30 Refrigeration FY 2002 Sales on last year s level Cost savings eaten up by market Outlook Additional measures will lead to further cost reduction Seite 30 30

31 Refrigeration Operating profit on last year s level ROCE has improved in million Sales EBITDA EBITA Margin Capital employed ROCE Cashflow Capex % % % % % % 5.1 % % % % Seite 31 31

32 First two months 2003 Seite 32 32

33 First 2 Months 2003 Sales decreased to 1,184 million (minus 2.1 %) Ex currency plus 3.6 % in million Per 02/02 Per 02/03 Gas and Engineering % Linde Gas % Linde Engineering % Material Handling % Refrigeration % Group 1,210 1, % Seite 33 33

34 First 2 Months 2003 Order Intake up to 1,425 million (plus 4.7 %) in million Gas and Engineering Linde Gas Linde Engineering Material Handling Refrigeration Group Per 02/02 Per 02/ % % % % 1,361 1, % Seite 34 34

35 Outlook Seite 35 35

36 Outlook Restructuring Programs until million cost savings in total - in million Linde Gas Refrigeration TRIM.100 Total Cost saving Provisions Seite 36 36

37 Outlook Expectations for FY 2003 Group: Slightgrowth in sales Noticeable improvement of EBITA Linde Gas: Sales growth, increase in operating profit Linde Engineering: Sales and profit growth Material Handling: Slight increase in sales, sustainable profit growth Refrigeration: Sales and profit near last year s level Seite 37 37

38 Outlook Midterm ROCE Targets Group: 10 % Linde Gas: 11 % Linde Engineering: 16 % Material Handling: 16 % Refrigeration: 8% Seite 38 38

39 Outlook Group Strategy by Divisions Linde Gas: Focus of our growth efforts lies on Linde Gas Linde Engineering: Strengthen technology leadership Material Handling: Top Priority - Reorganization and optimization TRIM.100 will be speeded up Refrigeration: New legal structure leaves all options open Seite 39 39

40 Appendix Seite 40 40

41 Linde Group Financial situation (incl. pension provisions) in million EBITDA Net interest expense EBITDA / Net interest expense Pension provisions Net debt Net debt incl. pension provisions Equity, minority interests Capital employed* Net debt / capital employed Net debt / EBITDA Gearing incl. pension provisions , ,063 3,807 4,870 4,356 9, % , ,078 3,313 4,391 4,119 8, % * Year end figure incl pension liabilities 41 Seite 41

42 Linde Group Material One- off items burdened the result in million Q 2 Q 1 Q 3 Q 4 Σ Sale of Dresdner Bank Holdings * Restructuring costs and provisions Valuation adjustments on securities *Tax free Seite 42 42

43 Linde Group Pension related expenses and cash payments In million Defined Benefit Plans 1. Regular (Of which financial items) 2. Special Contribution Defined Contribution Plans Total Pension Expense 96 (50) Cash Payments Pension Expense 100 (53) Cash Payments Seite 43 43

44 Linde Gas Linde Gas - Sales by regions (Total 3,880 million ) million Germany Rest of Europe Americas Asia / Africa / Australia Seite 44 44

45 Linde Gas Linde Gas Sales in million Bulk 1, % 1, % % Cylinder 1,724 44% 1,672 42% -3.0 % On-Site % % % Healthcare % % % Seite 45 45

46 Healthcare Development pipeline for new INO- based applications - exp. peak sales of around 700 million until Therapeutic principle Stage of R&D Exp. filing date Neonatal intensive care Pre term neonates Acute cardio-pulmonary disease Thoracic surgery Chronic cardio-pulmonary disease Pulmonary hypertension COPD Other organ disease Sickle cell disease Diagnostics Vaso reactivity Phase 3 Phase 3 Phase 1 Phase 2 Phase Phase Seite 46 46

47 Material Handling Material Handling - Sales by regions (Total 2,979 million ) million Germany Rest of Europe Americas Asia Africa / Australia Seite 47 47

48 Material Handling Material Handling- Figures by brand Linde MH STILL OM Sales in million 1,806 1, Orders Received in million 1,850 1, Units sold 60,958 33,575 13,816 Employees 10,426 6,326 1,313 Not consolidated Seite 48 48

49 Material Handling Material Handling Units sold by product group Counterbalanced trucks Warehouse trucks ,965 54, ,938 50,841 Consolidated Seite 49 49

50 Refrigeration Refrigeration - Sales by regions (Total 879 million ) million Germany Rest of Europe Americas Asia Africa / Australia Seite 50 50

51 Contact us Investor Relations Thomas Eisenlohr Tel.: Fax: Marc Weisener Tel.: Fax: Seite 51 51