| Segment/Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Engineering ($ million)** | **562**  **[0001654954-23-001367_lin_ex991.htm:1]**  | **540**  **[0001654954-23-005242_lin_ex991.htm:0]**  | **495**  **[0001628280-23-025878_lin-20230630.htm:25]**  | **467**  **[0001654954-23-013397_lin_ex991.htm:1]**  | **658**  **[0001654954-24-001330_linde_ex991.htm:1]**  | **539**  **[0001654954-24-005420_linde_ex991.htm:0]**  | **544**  **[0001628280-24-034299_lin-20240630.htm:23]**  | **611**  **[0001628280-24-044457_lin-20240930.htm:29]**  |
| **Other ($ million)** | N/A | **327**  **[0001654954-23-005242_lin_ex991.htm:0]**  | **325**  **[0001628280-23-025878_lin-20230630.htm:25]**  | **315**  **[0001654954-23-013397_lin_ex991.htm:1]**  | N/A | **319**  **[0001654954-24-005420_linde_ex991.htm:0]**  | **320**  **[0001628280-24-034299_lin-20240630.htm:23]**  | **300**  **[0001628280-24-044457_lin-20240930.htm:29]**  |

836fd483d36fc8a2ca2f6d23f2d8261af5942e23e85cf1364116b4eb82a690b0

55ed2b1965234f368f9e7b3e4a8d34aa23b83bacf69d4affcd86d953361ba33e

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

a78d819b07901617eb75b7b0c94d45492d7568cb86ce1d38eb53f5b2752ec150

| Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------|---------|---------|---------|---------|---------|---------|---------|---------|
| Americas (USD million) | **3,421**  **[0001654954-23-001367_lin_ex991.htm:1]**  | **3,551**  **[0001654954-23-005242_lin_ex991.htm:0]**  | **3,541**  **[0001654954-23-009714_lin_ex991.htm:1]**  | **3,629**  **[0001628280-23-035251_lin-20230930.htm:24]**  | **3,583**  **[0001654954-24-001330_linde_ex991.htm:1]**  | **3,560**  **[0001707925-24-000090_lin-20240331.htm:25]**  | **3,655**  **[0001628280-24-034299_lin-20240630.htm:23]**  | **3,618**  **[0001628280-24-044457_lin-20240930.htm:23]**  |
| EMEA (USD million) | **2,026**  **[0001654954-23-001367_lin_ex991.htm:1]**  | **2,177**  **[0001654954-23-005242_lin_ex991.htm:0]**  | **2,160**  **[0001654954-23-009714_lin_ex991.htm:1]**  | **2,105**  **[0001628280-23-035251_lin-20230930.htm:24]**  | **2,100**  **[0001654954-24-001330_linde_ex991.htm:1]**  | **2,091**  **[0001707925-24-000090_lin-20240331.htm:25]**  | **2,091**  **[0001628280-24-034299_lin-20240630.htm:23]**  | **2,111**  **[0001628280-24-044457_lin-20240930.htm:23]**  |
| APAC (USD million) | **1,567**  **[0001654954-23-001367_lin_ex991.htm:1]**  | **1,598**  **[0001654954-23-005242_lin_ex991.htm:0]**  | **1,683**  **[0001654954-23-009714_lin_ex991.htm:1]**  | **1,639**  **[0001628280-23-035251_lin-20230930.htm:24]**  | **1,639**  **[0001654954-24-001330_linde_ex991.htm:1]**  | **1,591**  **[0001707925-24-000090_lin-20240331.htm:25]**  | **1,657**  **[0001628280-24-034299_lin-20240630.htm:23]**  | **1,716**  **[0001628280-24-044457_lin-20240930.htm:23]**  |
| Other (USD million) | **323**  **[0001654954-23-001367_lin_ex991.htm:1]**  | **327**  **[0001654954-23-005242_lin_ex991.htm:0]**  | **325**  **[0001654954-23-009714_lin_ex991.htm:1]**  | **315**  **[0001628280-23-035251_lin-20230930.htm:24]**  | **322**  **[0001654954-24-001330_linde_ex991.htm:1]**  | **319**  **[0001707925-24-000090_lin-20240331.htm:25]**  | **320**  **[0001628280-24-034299_lin-20240630.htm:23]**  | **300**  **[0001628280-24-044457_lin-20240930.htm:23]**  |

48a655819d37eb1c4e6f822f0c34eec01be2980fac4e03ed565041a392c070a2

Linde plc is a leading global industrial gases and engineering company, primarily engaged in the production and distribution of atmospheric gases such as oxygen, nitrogen, argon, and rare gases, as well as process gases including carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene **[0001628280-24-025105_a123123exhibit101.htm:1]** **[0001628280-24-007424_lin-20231231.htm:26]** **[0001628280-24-007424_lin-20231231.htm:4]**. The company's operations are divided into two major product lines: industrial gases and engineering, with the industrial gases segment managed on a geographic basis across the Americas, EMEA (Europe, Middle East, and Africa), and APAC (Asia/South Pacific) regions, while the engineering segment operates globally **[0001628280-24-007424_lin-20231231.htm:111]** **[0001628280-24-007424_lin-20231231.htm:37]**. In 2023, approximately 90% of Linde's consolidated sales were generated from industrial gases, with the remaining 10% coming from the engineering segment and other activities **[0001628280-24-025105_a123123exhibit101.htm:1]**.

1. **Industrial Gases** - Produces and distributes atmospheric and process gases, managed geographically across the Americas, EMEA, and APAC regions.
2. **Engineering** - Designs and constructs plants for air separation, hydrogen production, and other industrial gas applications, operating on a global scale.
3. **Advanced Material Technologies** - Includes sputtering targets and coatings, contributing to the company's diverse product offerings.

f812bb3538c656f86042930472c71f32872bff6c429c73664a216d19d45aea7c

1. Given the ongoing economic weakness in regions like Europe and China, and the decline in industrial-related end markets by **1% to 2% sequentially**, what specific measures are you taking to mitigate these challenges and maintain growth in these markets?

2. With the **targeted cost reductions affecting approximately 2% of your global workforce**, how do you anticipate this will impact your operational efficiency and ability to serve customers, especially in areas where you're seeing growth like North America and India?

3. Considering the significant investment of over **$2 billion** in the Dow Chemical project expected to start up in late **2028**, what are the key risks associated with this long-term project, and how confident are you in achieving the expected returns given potential economic uncertainties?

4. Despite not having heard from any major customers in Europe about shutdowns, how are you preparing for potential future closures or restructuring in the European industry that could impact your contracts and supply agreements?

5. With mid-single-digit declines in hard goods sales reflecting industrial weakness, particularly in the U.S., what strategies are you implementing to address this trend and bolster demand in your hard goods and related businesses?

2a57bc185a7ab987c0f901c75f72511440fa397b01e0b2d40ea414249c549f9a

- L’Air Liquide S.A. - Global competitor in the industrial gases industry  **[0001628280-24-007424_lin-20231231.htm:9]** .
- Air Products and Chemicals, Inc. - Global competitor in the industrial gases industry  **[0001628280-24-007424_lin-20231231.htm:9]** .
- Messer Group GmbH - Global competitor in the industrial gases industry  **[0001628280-24-007424_lin-20231231.htm:9]** .
- Mitsubishi Chemical Holdings Corporation (through Taiyo Nippon Sanso Corporation) - Global competitor in the industrial gases industry  **[0001628280-24-007424_lin-20231231.htm:9]** .

61e0754d56144d7873f81e76603436c39dd3f0fbf530e40c5ee11e2ddc243d54

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  1. **EPS Guidance for Q4 2024**: $3.86 to $3.96, representing 8% to 10% growth, assuming an economic contraction at the midpoint and no currency impact  **[LIN_3405049_3]** .
  2. **Full Year 2024 EPS Guidance**: $15.40 to $15.50, reflecting 9% to 10% growth, excluding a 1% foreign exchange headwind. The top end was reduced by $0.10 due to an updated economic assumption  **[LIN_3405049_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  1. **EPS Guidance for Q3 2024**: $3.82 to $3.92, representing 6% to 9% growth, excluding a 1% FX headwind, assuming no economic improvement at the midpoint  **[LIN_3396180_4]** .
  2. **Full Year 2024 EPS Guidance**: $15.40 to $15.60, reflecting 9% to 11% growth, excluding a 1% FX headwind. The bottom end was raised by $0.10  **[LIN_3396180_4]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  1. **EPS Guidance for Q2 2024**: $3.70 to $3.80, representing 5% to 7% growth, excluding a 1% FX headwind  **[LIN_3382107_3]** .
  2. **Full Year 2024 EPS Guidance**: $15.30 to $15.60, indicating 9% to 11% growth, excluding a 1% FX headwind. The range was narrowed by $0.05 on both ends  **[LIN_3382107_3]** .
  3. **CapEx Guidance for Full Year 2024**: $4 billion to $4.5 billion  **[LIN_3382107_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  1. **Full Year EPS Guidance**: $15.25 to $15.65, representing 8% to 11% growth, excluding a 1% FX headwind  **[LIN_3371987_4]** .
  2. **First Quarter EPS Guidance**: $3.58 to $3.68, translating to 6% to 9% EPS growth, excluding FX  **[LIN_3371987_4]** .
  3. **Backlog Contribution to EPS Growth**: 1% to 2%, with expectations at the top end  **[LIN_3371987_7]** .
  4. **Share Buybacks and Share Count Impact**: Expected to contribute about 2 percentage points to EPS growth  **[LIN_3371987_7]** .
  5. **Capital Expenditure (CapEx)**: $4.5 billion to $5 billion  **[LIN_3371987_11]** .

1cee3e2172f08d3c221acc0942a76381fc881ce7054f3474186f50604e3bc51a

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

387da70a458602fa7b2c19e0d5148d92af998303fe0ae3d21bb8210d44229898

Industrial Gases

- Americas

- EMEA

- APAC

Engineering

Other

Merchant

On-Site

Packaged Gas

Total Revenue

7cda528c49c54ae7bf7f837b5428e30a52e64904cf4f302d03449502cf9de53c

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Americas

- United States

- Brazil

EMEA

- Germany

- United Kingdom

APAC

- China

- Australia

Other – International

fef8919fa2d6674d8c9b0f6356959dbf8dcb7f91a8771a2c58ed4b1edaad061e

| Name               | Position                                         | Start Date          | Short Bio                                                                                                                                                                                                 |
|--------------------|--------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Sanjiv Lamba       | Chief Executive Officer                          | March 1, 2022       | Sanjiv Lamba became the **Chief Executive Officer of Linde plc on March 1, 2022**. He previously served as COO and Executive Vice President for the APAC region. He began his career with BOC in India in 1989  **[0001193125-24-121902_d647301ddef14a.htm:28]** **[0001628280-24-007424_lin-20231231.htm:10]** **[0001628280-23-005434_lin-20221231.htm:9]** .                      |
| Guillermo Bichara  | Executive Vice President & Chief Legal Officer   | 2006                | Guillermo Bichara joined Linde in **2006** as Director of Legal Affairs at Praxair Mexico. He was later promoted to Vice President and General Counsel of Praxair Asia  **[0001628280-24-007424_lin-20231231.htm:10]** **[0001628280-23-005434_lin-20221231.htm:9]** .                                                                  |
| Sean Durbin        | Executive Vice President, North America          | September 1, 2023   | Sean Durbin became **Executive Vice President, North America** at Linde effective **September 1, 2023**. He previously served as Executive Vice President, EMEA and joined Praxair, Inc. in 1993  **[0001628280-24-007424_lin-20231231.htm:10]** .                                          |
| Kelcey E. Hoyt     | Chief Accounting Officer                         | October 2018        | Kelcey E. Hoyt became the **Chief Accounting Officer of Linde** in **October 2018**. She joined Praxair in 2002 and held various positions, including Vice President and Controller  **[0001628280-24-007424_lin-20231231.htm:10]** **[0001628280-23-005434_lin-20221231.htm:9]** .                                                     |
| Juergen Nowicki    | Executive Vice President and CEO, Linde Engineering | April 2020          | Juergen Nowicki was appointed as **Executive Vice President and CEO of Linde Engineering** in **April 2020**. He joined Linde in 1991 and has held various positions in Finance and Controlling  **[0001628280-24-007424_lin-20231231.htm:10]** **[0001628280-23-005434_lin-20221231.htm:9]** .                                         |
| John Panikar       | Executive Vice President, APAC                   | January 2021        | John Panikar was appointed as **Executive Vice President, APAC of Linde** effective in **January 2021**. He previously served as President UK & Africa of Linde  **[0001628280-24-007424_lin-20231231.htm:11]** **[0001628280-23-005434_lin-20221231.htm:9]** .                                                                         |
| Oliver Pfann       | Senior Vice President, EMEA                      | September 1, 2023   | Oliver Pfann was appointed as **Senior Vice President, EMEA** at Linde effective **September 1, 2023**. He has been with Linde since 1995, starting in Product Development  **[0001628280-24-007424_lin-20231231.htm:11]** .                                                                |
| David P. Strauss   | Executive Vice President and Chief Human Resources Officer | 2022                | David P. Strauss has been serving as the **Executive Vice President and Chief Human Resources Officer** at Linde since **2022**. He joined Linde in 1990 and has held various positions  **[0001628280-24-007424_lin-20231231.htm:11]** .                                                   |
| Matthew J. White   | Executive Vice President and Chief Financial Officer | October 2018        | Matthew J. White became the **Executive Vice President and Chief Financial Officer** of Linde in **October 2018**. He previously served as the Senior Vice President and CFO of Praxair, Inc.  **[0001628280-24-007424_lin-20231231.htm:11]** .                                            |
| Binod Patwari      | Senior Vice President-APAC                       | November 1, 2024    | Binod Patwari currently serves as the Senior Vice President-APAC at Linde, effective **November 1, 2024**. He was previously the Managing Director of Linde’s South Pacific Region  **[0001654954-24-013677_linde_8k.htm:1]** .                                                        |

1e1a613931156eeeff0d92144e1e29199c0bfd9eb4da0bf90240f56562b4beaa

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | October 23, 2023  **[0001628280-24-044457_lin-20240930.htm:47]**  |
| End Date/Duration        | Until maximum authority is reached or board terminates  **[0001628280-24-044457_lin-20240930.htm:47]**  |
| Total additional amount  | **$15.0 billion**  **[0001628280-24-044457_lin-20240930.htm:47]**  |
| Remaining authorization  | **$13.3 billion** (as of September 30, 2024)  **[0001628280-24-044457_lin-20240930.htm:47]**  |
| Details                  | Optimize excess free cash flow, leverage robust balance sheet, return capital to shareholders  **[LIN_3362141_4]** **[0001628280-24-044457_lin-20240930.htm:47]**  |

d4ad8bd9b9f00e88b61850b5b06049c315f4b9d079312610ecef42a5759aabe2

**Quarterly guidance for Q4 2024:**
- **EPS**: $3.86 to $3.96  **[LIN_3405049_3]**  (no prior guidance)

**Annual guidance for FY 2024:**
- **EPS**: $15.40 to $15.50  **[LIN_3405049_3]**  (lowered from $15.40 to $15.60  **[LIN_3396180_4]** )

ea82a89005f2fcd9f5c655139307e4e4aa462345e99618670f7df33255e94545

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 1992  **[0001628280-24-007424_lin-20231231.htm:61]**  | Present  | Current auditor   |

7412f6bf3512ce192c53da3d6c2827938a04d793cc89d7ec0cf09aa94b7a7d69

3d8e530fa866ffeee0f26be6e4f5196871fd7a723df0ea91108bf8267687a9f5

- Total Revenue: $8,356 million (+2% YoY)  **[0001628280-23-035251_lin-20230930.htm:18]** **[0001628280-24-044457_lin-20240930.htm:17]**   
- Engineering segment: $611 million (**+31%** YoY)  **[0001628280-23-035251_lin-20230930.htm:18]** **[0001628280-24-044457_lin-20240930.htm:17]**   
- Other segment: $1,000 million (**+16%** YoY)  **[0001628280-23-035251_lin-20230930.htm:24]** **[0001628280-24-044457_lin-20240930.htm:23]**   

e413e8c248a6be4d4101b439068113fd26f03ed0d343473ea14f606ee82ff159

20539f91e5fae430110d3656618f2fbd406eb06d43e210e61bf766bc5b6a83d7

Volume percentage change – Consolidated (percentage)

Price/Mix percentage change – Consolidated (percentage)

Cost pass-through percentage change – Consolidated (percentage)

Currency percentage change – Consolidated (percentage)

Acquisitions/Divestitures percentage change – Consolidated (percentage)

Volume percentage change – Americas (percentage)

Price/Mix percentage change – Americas (percentage)

Cost pass-through percentage change – Americas (percentage)

Currency percentage change – Americas (percentage)

Acquisitions/Divestitures percentage change – Americas (percentage)

Volume percentage change – EMEA (percentage)

Price/Mix percentage change – EMEA (percentage)

Cost pass-through percentage change – EMEA (percentage)

Currency percentage change – EMEA (percentage)

Acquisitions/Divestitures percentage change – EMEA (percentage)

Volume percentage change – APAC (percentage)

Price/Mix percentage change – APAC (percentage)

Cost pass-through percentage change – APAC (percentage)

Currency percentage change – APAC (percentage)

Acquisitions/Divestitures percentage change – APAC (percentage)

Volume/price percentage change – Other (percentage)

Cost pass-through percentage change – Other (percentage)

Currency percentage change – Other (percentage)

Acquisitions/Divestitures percentage change – Other (percentage)

Number of employees (count)

a5b4adaf939daf841e3aead8bf6e1f501c6b962c12dbd6d2b3a8cff374b22cc1

d5ca1cad19ac11dfd5ffe775d257a764fbb1dc8d0e298348c0fa1bfa8b8a3708

| Year | Amount Due (Millions) | Debt Type                  | Interest Rate (%) | % of Total Debt                                                                 |
|----------|---------------------------|--------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2024     | 300 **[0001628280-24-044457_lin-20240930.htm:8]**               | 4.800% Notes                  | 4.800 **[0001628280-24-044457_lin-20240930.htm:8]**         | 1.3% = (300 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2025     | 599 **[0001628280-24-044457_lin-20240930.htm:8]**               | 4.700% Notes                  | 4.700 **[0001628280-24-044457_lin-20240930.htm:8]**         | 2.7% = (599 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2025     | 400 **[0001628280-24-044457_lin-20240930.htm:8]**               | 2.65% Notes                   | 2.650 **[0001628280-24-044457_lin-20240930.htm:8]**         | 1.8% = (400 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2025     | 556 **[0001628280-24-044457_lin-20240930.htm:8]**               | 1.625% Euro Notes             | 1.625 **[0001628280-24-044457_lin-20240930.htm:8]**         | 2.5% = (556 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2025     | 556 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.625% Euro Notes             | 3.625 **[0001628280-24-044457_lin-20240930.htm:8]**         | 2.5% = (556 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2026     | 781 **[0001628280-24-044457_lin-20240930.htm:8]**               | 0.00% Euro Notes              | 0.000 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.5% = (781 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2026     | 725 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.20% Notes                   | 3.200 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.3% = (725 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2026     | 199 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.434% Notes                  | 3.434 **[0001628280-24-044457_lin-20240930.htm:8]**         | 0.9% = (199 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2027     | 90 **[0001628280-24-044457_lin-20240930.htm:8]**                | 1.652% Euro Notes             | 1.652 **[0001628280-24-044457_lin-20240930.htm:8]**         | 0.4% = (90 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                                |
| 2027     | 834 **[0001628280-24-044457_lin-20240930.htm:8]**               | 0.25% Euro Notes              | 0.250 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.7% = (834 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2027     | 558 **[0001628280-24-044457_lin-20240930.htm:8]**               | 1.00% Euro Notes              | 1.000 **[0001628280-24-044457_lin-20240930.htm:8]**         | 2.5% = (558 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2028     | 796 **[0001628280-24-044457_lin-20240930.htm:8]**               | 1.00% Euro Notes              | 1.000 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.6% = (796 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2028     | 776 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.00% Euro Notes              | 3.000 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.5% = (776 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2029     | 832 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.375% Euro Notes             | 3.375 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.7% = (832 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2030     | 697 **[0001628280-24-044457_lin-20240930.htm:8]**               | 1.10% Notes                   | 1.100 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.1% = (697 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2030     | 115 **[0001628280-24-044457_lin-20240930.htm:8]**               | 1.90% Euro Notes              | 1.900 **[0001628280-24-044457_lin-20240930.htm:8]**         | 0.5% = (115 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2030     | 830 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.375% Euro Notes             | 3.375 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.7% = (830 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2031     | 837 **[0001628280-24-044457_lin-20240930.htm:8]**               | 1.375% Euro Notes             | 1.375 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.8% = (837 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2031     | 944 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.20% Euro Notes              | 3.200 **[0001628280-24-044457_lin-20240930.htm:8]**         | 4.2% = (944 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2032     | 831 **[0001628280-24-044457_lin-20240930.htm:8]**               | 0.55% Euro Notes              | 0.550 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.7% = (831 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2033     | 551 **[0001628280-24-044457_lin-20240930.htm:8]**               | 0.375% Euro Notes             | 0.375 **[0001628280-24-044457_lin-20240930.htm:8]**         | 2.5% = (551 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2034     | 720 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.625% Euro Notes             | 3.625 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.2% = (720 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2034     | 827 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.500% Euro Notes             | 3.500 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.7% = (827 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2035     | 885 **[0001628280-24-044457_lin-20240930.htm:8]**               | 1.625% Euro Notes             | 1.625 **[0001628280-24-044457_lin-20240930.htm:8]**         | 4.0% = (885 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2036     | 773 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.40% Euro Notes              | 3.400 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.5% = (773 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2042     | 666 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.55% Notes                   | 3.550 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.0% = (666 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2044     | 764 **[0001628280-24-044457_lin-20240930.htm:8]**               | 3.75% Euro Notes              | 3.750 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.4% = (764 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2050     | 297 **[0001628280-24-044457_lin-20240930.htm:8]**               | 2.00% Notes                   | 2.000 **[0001628280-24-044457_lin-20240930.htm:8]**         | 1.3% = (297 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |
| 2051     | 762 **[0001628280-24-044457_lin-20240930.htm:8]**               | 1.00% Euro Notes              | 1.000 **[0001628280-24-044457_lin-20240930.htm:8]**         | 3.4% = (762 / 22,262) * 100 **[0001628280-24-044457_lin-20240930.htm:8]**                                               |

42ef0e897b89cd804add81853ec955f3e9397f4538567139b82ad096e1ddd283

1. **Economic Contraction Guidance**  
   **Q:** Where are you seeing macro pressures today?  
   **A:** We are seeing pressures in the **European market**, reflected in volume developments.  **[LIN_3405049_5]**  In **China**, the underlying industrial progression is not reflecting the stimulus, and we are unlikely to see a catalyst for change in the near term.  **[LIN_3405049_5]**  However, **North America**, primarily the **U.S.**, has been resilient thus far.  **[LIN_3405049_5]**  Other bright spots include **India** and **Mexico**, where we are seeing consistent growth.  **[LIN_3405049_5]** 

2. **Q4 Volume Outlook**  
   **Q:** Does Q4 contraction reflect seasonal slowdowns or more?  
   **A:** The expected economic contraction in Q4 is across base organic volumes and **not seasonal**.  **[LIN_3405049_8]**  We view it as a **sequential contraction** due to macroeconomic pressures.  **[LIN_3405049_8]**  Extended outages could indicate weakness as customers may not have the order intake or workload.  **[LIN_3405049_8]**  We are taking actions around it and getting ahead to prepare.  **[LIN_3405049_8]** 

3. **Capital Allocation and Buybacks**  
   **Q:** Will capital allocation split change in 2025-2026?  
   **A:** No, our capital allocation policy remains consistent.  **[LIN_3405049_15]**  After maintaining a **single A credit rating** and raising the dividend every year, our priority is to invest in the business using our investment criteria.  **[LIN_3405049_15]**  With the increase in our sale of gas backlog to **$7 billion**, we'll allocate more CapEx to build these projects.  **[LIN_3405049_15]**  We expect buybacks to be **consistent next year** with this year.  **[LIN_3405049_15]** 

4. **Project Backlog and Growth**  
   **Q:** Can you discuss the path to $8–10 billion investment?  
   **A:** We have signed up about half of the **$8–10 billion** target between **OCI** and **Dow Phase I**.  **[LIN_3405049_9]**  We are doing front-end work on several projects and feel confident about reaching our target over the next few years.  **[LIN_3405049_9]**  Despite some cancellations in the industry, we remain selective and focused on **low-carbon hydrogen** projects, where technology is mature and returns are promising.  **[LIN_3405049_9]** 

5. **Cost Reduction Impact on EPS**  
   **Q:** Will new cost reductions lift EPS by 1–2%?  
   **A:** We expect this action to provide a roughly **one-year return**.  **[LIN_3405049_21]**  The full run rate will take effect in the second half of next year, and we anticipate the majority of the benefit in **2025**.  **[LIN_3405049_21]**  This is incremental and part of our management actions to get ahead in a weaker macro environment.  **[LIN_3405049_21]** 

6. **Electronics Business Outlook**  
   **Q:** What happened with electronics sales this quarter?  
   **A:** Electronics sales were up **9% year-on-year**.  **[LIN_3405049_16]**  Sequentially, gas sales were up, but our advanced materials business saw some destocking in electronics components during the quarter.  **[LIN_3405049_16]**  We expect this to normalize in Q4, leading to solid sequential growth.  **[LIN_3405049_16]** 

7. **European Industry Risks**  
   **Q:** Any concerns about European customer shutdowns?  
   **A:** We have not heard from any major customers in Europe discussing major closures.  **[LIN_3405049_12]**  We are tracking the situation closely, but our solid contracts protect our investments if customers decide on shutdowns.  **[LIN_3405049_12]** 

8. **Healthcare Business Pruning**  
   **Q:** What's the status of healthcare portfolio pruning?  
   **A:** The pruning of our home care business, largely in the U.S., is expected to be completed by the end of the year.  **[LIN_3405049_7]**  We anticipate structural growth rates between **low single-digit to mid-single-digit** in healthcare moving forward.  **[LIN_3405049_7]**  We continuously evaluate our portfolio and will consider further divestments as needed.  **[LIN_3405049_20]** 

9. **Decaptivation Opportunities**  
   **Q:** Are you seeing more decaptivation opportunities?  
   **A:** We assess **8 to 10** decaptivation opportunities globally each year and are selective.  **[LIN_3405049_6]**  The recent decaptivation of two ASUs in India allowed us to integrate them into our network, enhancing network density and creating value.  **[LIN_3405049_6]** 

10. **ATR Design and Hydrogen Network**  
    **Q:** Have you designed an ATR like this before?  
    **A:** Yes, we have designed and operated ATRs before, including one in **La Porte, Texas**.  **[LIN_3405049_11]**  We are building similar technology at **OCI**.  **[LIN_3405049_11]**  We plan to leverage our established footprint to build a significant hydrogen network in Alberta, promoting network density and value creation.  **[LIN_3405049_18]** 

11. **Pricing and Margin Outlook**  
    **Q:** Did price/mix grow sequentially in packaged and merchant?  
    **A:** We continue to see positive sequential and year-over-year pricing in our merchant and packaged gases.  **[LIN_3405049_10]**  Pricing in merchant and package is about **double** the global number we report.  **[LIN_3405049_10]**  Helium pricing is slightly declining to flat, but overall, our pricing tracks with the globally weighted CPI in our regions.  **[LIN_3405049_10]** 

12. **Hard Goods Demand and Consumer Behavior**  
    **Q:** How is hard goods demand and customer behavior?  
    **A:** We are seeing **mid-single-digit declines** in hard goods sales, reflecting industrial weakness, particularly in manufacturing.  **[LIN_3405049_22]**  Globally, consumers are cautious on large spending due to economic uncertainties.  **[LIN_3405049_22]**  In the U.S., while consumer behavior has been strong, we are seeing signals of concern, like rising delinquencies on auto loans.  **[LIN_3405049_22]** 

13. **Initial View on 2025**  
    **Q:** Will 1H '25 be similar to 2H '24?  
    **A:** We will come back in **February** to provide a comprehensive view on 2025.  **[LIN_3405049_13]**  We are currently planning and will share more details at that time.  **[LIN_3405049_13]** 

14. **Dow Project Phase II**  
    **Q:** Will Dow Phase II be larger than Phase I?  
    **A:** We expect the investment in Dow Phase II to be **a little bit lower** than in the first phase.  **[LIN_3405049_19]**  We have done initial planning, and the decision will be made over the agreed timeline.  **[LIN_3405049_19]** 

15. **Portfolio Management**  
    **Q:** Any plans to divest in other regions?  
    **A:** We continuously evaluate our portfolio and consider divestments where appropriate.  **[LIN_3405049_20]**  We have a healthy pipeline of tuck-in acquisitions and will continue to optimize our portfolio for value creation.  **[LIN_3405049_20]** 

16. **Sale of Gas Backlog Timing**  
    **Q:** What's the timing on new backlog projects?  
    **A:** Traditional projects take about **3 years** from announcement to completion.  **[LIN_3405049_14]**  Larger clean energy projects, like Dow, may take **4 years plus** due to scope.  **[LIN_3405049_14]**  The remainder of the backlog follows a more normalized timeline.  **[LIN_3405049_14]** 

f37bd56444e602e54abe0131244fa8869959ae3f26235d7dff4c38ce10839f89

1. **China Outlook**  
   **Q:** What's the outlook for China in 2024?  
   **A:** Linde sees continued softness in China, which accounts for **7%** of their total sales.  **[LIN_3371987_5]**  They observe a lack of momentum in industrials and don't anticipate a significant recovery in 2024.  **[LIN_3371987_5]**  Key sectors like steel are shrinking, with crude steel down **4%** in Q4 due to property market weaknesses.  **[LIN_3371987_5]**  While automotive showed growth of **17%** in Q4, driven by EVs, overall manufacturing remains lackluster.  **[LIN_3371987_5]**  Electronics saw mild recovery but face geopolitical risks, with only a mild recovery expected in the first half of the year.  **[LIN_3371987_5]** 

2. **Margin and Pricing Trends**  
   **Q:** How are margins and pricing expected to trend in 2024?  
   **A:** Linde expects margins to remain very secure, with no significant changes from 2023.  **[LIN_3371987_6]**  Pricing is tracking globally weighted inflation, and despite disinflation in some regions, they anticipate higher pricing levels than seen in the last decade.  **[LIN_3371987_6]**  Ongoing pricing actions and discipline are expected to continue, leading to margin improvements in 2024.  **[LIN_3371987_6]** 

3. **Capital Expenditure Increase**  
   **Q:** What's driving the higher CapEx guidance for 2024?  
   **A:** The increase in CapEx to **$4.5 to $5 billion** is driven by more capital-intensive growth projects.  **[LIN_3371987_11]**  This includes their largest project with OCI and the final stages of electronics projects construction.  **[LIN_3371987_11]**  Early equipment ordering and the higher capital requirements of energy transformation initiatives are contributing factors.  **[LIN_3371987_11]** 

4. **Returns on Capital vs. Volume Growth**  
   **Q:** With high returns on capital but flat volumes, would you accept lower returns for growth?  
   **A:** Linde focuses on Internal Rate of Return (IRR) for investment decisions, not just Return on Capital (ROC).  **[LIN_3371987_9]**  They are open to investing in lower ROC projects if they meet IRR criteria.  **[LIN_3371987_9]**  While ROC may plateau or decline slightly due to capital-intensive growth, they aim to maintain healthy ROC and margins while growing EPS and cash flow.  **[LIN_3371987_9]** 

5. **Green Hydrogen Projects**  
   **Q:** Why avoid large green hydrogen projects currently?  
   **A:** Linde believes electrolyzer technology needs **5 to 7 years** to improve in reliability and capital efficiency for large-scale green hydrogen projects.  **[LIN_3371987_8]**  Until then, they focus on small to medium-sized electrolyzer complexes serving merchant demand.  **[LIN_3371987_8]**  They are also scaling up their liquid hydrogen technology to support future growth.  **[LIN_3371987_8]** 

6. **EMEA Margins and Outlook**  
   **Q:** What's behind the EMEA margin performance and outlook?  
   **A:** In Q4, EMEA margins were impacted by one-time costs and volume declines.  **[LIN_3371987_12]**  Linde expects margins to improve in 2024, with volumes stabilizing.  **[LIN_3371987_12]**  Despite deindustrialization concerns, EMEA remains a resilient market with opportunities in decarbonization projects.  **[LIN_3371987_14]**  They anticipate it will continue contributing to EPS growth.  **[LIN_3371987_14]** 

7. **Sale of Gas Backlog Growth**  
   **Q:** How do you see your sale of gas backlog trending?  
   **A:** The sale of gas backlog is expected to continue growing, driven by traditional on-site projects and an increasing portion from decarbonization efforts.  **[LIN_3371987_10]**  Linde anticipates momentum translating into projects worth **$8 to $10 billion** over the next few years.  **[LIN_3371987_10]**  They are winning more than their fair share in markets like India.  **[LIN_3371987_10]** 

8. **Total Shareholder Return Drivers**  
   **Q:** How do buybacks and dividends factor into TSR?  
   **A:** Linde views both buybacks and dividends as integral to their capital allocation strategy.  **[LIN_3371987_13]**  They commit to growing the dividend annually but do not target a specific dividend yield.  **[LIN_3371987_13]**  Excess cash enables continued stock buybacks, and they treat capital equally whether it's for buybacks or growth projects.  **[LIN_3371987_13]** 

9. **India as Growth Opportunity**  
   **Q:** Should we see India as a new growth driver over China?  
   **A:** India is an important and growing market for Linde, where they've operated for **90 years**.  **[LIN_3371987_18]**  They are well-positioned to capitalize on opportunities there.  **[LIN_3371987_18]**  However, due to the scale of assets in China, it will continue to be a significant market for them.  **[LIN_3371987_18]** 

10. **Helium Market Outlook**  
    **Q:** What's the outlook for the helium market?  
    **A:** Helium represents very low single-digit revenues for Linde.  **[LIN_3371987_5]**  The market is globally balanced with some regional imbalances.  **[LIN_3371987_5]**  In Q4, volumes saw low single-digit declines while pricing remained steady.  **[LIN_3371987_5]**  They expect helium volumes to remain largely balanced in 2024, mirroring electronics market trends.  **[LIN_3371987_5]** 

11. **Hydrogen Customer Types and Premiums**  
    **Q:** Who are the customers for liquid green hydrogen?  
    **A:** Large on-site customers prefer low-risk options like blue hydrogen due to reliability and cost-effectiveness.  **[LIN_3371987_15]**  Green hydrogen via electrolyzers lacks the necessary reliability and scale for large long-term agreements.  **[LIN_3371987_15]**  Small volumes of green hydrogen are being used in mobility applications, but widespread adoption awaits technological improvements.  **[LIN_3371987_15]** 

12. **No-Growth Economic Assumption**  
    **Q:** Are you seeing more growth than implied in your no-growth guidance?  
    **A:** Linde's guidance assumes zero economic growth for base volumes in 2024.  **[LIN_3371987_17]**  While the backlog and pricing contribute positively, they maintain a conservative assumption on base volume growth, consistent with industrial production metrics.  **[LIN_3371987_17]** 

13. **Retrofitting Existing Assets**  
    **Q:** How much of your clean energy pipeline involves retrofitting existing assets?  
    **A:** Linde plans to invest about **$3 billion** in retrofitting and repurposing existing assets with carbon capture to produce blue hydrogen.  **[LIN_3371987_16]**  This is part of a broader **$8 to $10 billion** clean energy investment pipeline over the next few years.  **[LIN_3371987_16]** 

14. **Food and Beverage Growth**  
    **Q:** What's driving growth in the food and beverage segment?  
    **A:** The **9%** year-over-year growth is driven by innovations in food freezing and strong beverage carbonation sales.  **[LIN_3371987_19]**  CO₂ pricing supports this growth, but they currently see no linkage between the 45Q tax credits and CO₂ pricing.  **[LIN_3371987_19]**  Linde expects continued strong growth due to application development and resilient demand in this sector.  **[LIN_3371987_19]** 

b4c37955dabae25fd93f2f626b8db659a4f11241ecbe4b6fef01180ded90ebb2

- **Linde expects to deliver over 10% EPS growth in 2024**, driven by backlog contributions at the top end of the 1-2% range, share buybacks contributing approximately 2 percentage points, and management actions in pricing, productivity, and total cost management.  **[LIN_3371987_7]**
- **The company's sale of gas backlog is anticipated to grow with $8-10 billion in new projects over the next few years**, particularly in clean energy and decarbonization, positioning Linde for high-quality future growth.  **[LIN_3371987_16]** **[LIN_3371987_10]**
- **Despite challenges in the EMEA region, Linde has achieved strong profit growth and expects margins to improve in 2024**, supported by a resilient base business and large project opportunities led by decarbonization efforts.  **[LIN_3371987_14]** **[LIN_3371987_12]**

07f5053c449c2cadc5840ab2cdaf7aaf0bf7bb631b48c7bbd944fab748739462

1. **Earnings Growth Despite Macro Weakness**  
   **Q:** Can you sustain 10%+ EPS growth in a weak macro environment?  
   **A:** Management remains confident in delivering **over 10% EPS growth** despite the unsupportive macro backdrop.  **[LIN_3396180_5]**  They attribute this to four key contributors: backlog start-ups contributing **1–2%**, proactive pricing and productivity measures adding **4–6%**, share buybacks providing **2%**, and the potential for volume growth if industrial activity picks up.  **[LIN_3396180_5]**  Even assuming zero volume growth, they believe their algorithm will achieve the target EPS growth.  **[LIN_3396180_5]** 

2. **Interest Rates Impact on Projects**  
   **Q:** Will declining interest rates alter your macro outlook or customer behavior?  
   **A:** Management suggests that lower interest rates could positively impact large capital-intensive projects by reducing CapEx costs, which are currently high due to inflation and rates.  **[LIN_3396180_10]**  A decrease in rates may encourage customers to proceed with Final Investment Decisions (FIDs) on delayed projects, potentially improving industrial activity.  **[LIN_3396180_10]** 

3. **Electronics Sector Outlook**  
   **Q:** What's the outlook for electronics projects and AI opportunities?  
   **A:** Management expects continued momentum in electronics investments, driven by new fab capacity and the growing demands of AI and data centers.  **[LIN_3396180_11]**  They are advancing projects with major players like TSMC in Phoenix and Samsung in Texas, and anticipate future announcements as contracts are signed.  **[LIN_3396180_11]**  They remain well-positioned to capture growth in this sector.  **[LIN_3396180_11]** 

4. **Helium Market Challenges**  
   **Q:** Are helium pricing and volumes stabilizing in Asia Pacific?  
   **A:** The helium market in Asia Pacific is experiencing pricing pressure due to increased supply from Russia entering China.  **[LIN_3396180_12]**  While Linde does not source helium from Russia, this additional supply has led to stabilization but requires monitoring.  **[LIN_3396180_12]**  The company emphasizes the importance of a diverse supply and robust global business to navigate these challenges.  **[LIN_3396180_12]** 

5. **Healthcare Business Pruning**  
   **Q:** How much portfolio pruning remains in healthcare, and can you recoup inflation?  
   **A:** Management continues portfolio pruning in the healthcare segment, expecting actions to conclude by **year-end**.  **[LIN_3396180_8]**  Long-term growth is projected at **mid-single digits**, supported by demographic trends.  **[LIN_3396180_8]**  To manage inflation, they focus on productivity measures to maintain attractive margins.  **[LIN_3396180_8]** 

6. **Pricing Strength in the Americas**  
   **Q:** What's driving robust pricing in the Americas?  
   **A:** Pricing remains strong in both the U.S. and Latin America, tracking regional CPI trends.  **[LIN_3396180_14]**  In Latin America, higher inflation rates contribute to elevated pricing levels.  **[LIN_3396180_15]**  Management attributes this to proactive actions and expects this trend to continue.  **[LIN_3396180_14]** 

7. **Decarbonization Investment Plans**  
   **Q:** Is the $3 billion decarbonization plan on track?  
   **A:** Linde is progressing with its **$3 billion** plan to decarbonize operations.  **[LIN_3396180_16]**  They are conducting FEED studies on SMRs to determine the best approaches for carbon capture and remain on schedule to meet their **2035 targets**.  **[LIN_3396180_16]** 

8. **Return on Invested Capital Outlook**  
   **Q:** Will ROIC plateau or change with new investments?  
   **A:** Management aims to maintain industry-leading ROIC levels, potentially improving margins while growing in high-quality areas.  **[LIN_3396180_20]**  They feel confident about their capital structure and believe that growth investments will not adversely affect ROIC.  **[LIN_3396180_20]** 

9. **Defensive Business Strategy**  
   **Q:** How will you handle worsening macro conditions?  
   **A:** Linde's business is inherently defensive, with approximately **75%** of business contracted or locked in through on-site agreements, resilient end markets like food, beverage, and healthcare, and contracted rental streams.  **[LIN_3396180_13]**  Management feels confident in their ability to navigate softer industrial activity and maintain growth.  **[LIN_3396180_13]** 

10. **Order Intake and Bidding Activity**  
    **Q:** Why was order intake the lowest since Q2 2020?  
    **A:** While order intake was low at **$300 million**, management notes that engineering teams are busy with front-end work like studies and FEEDs.  **[LIN_3396180_7]**  Customers are taking longer to reach FIDs, causing delays in converting activity into orders.  **[LIN_3396180_7]** 

ac1b452094fe4596af6de92455b2f7685b1a2fac46b71b480e0d00209922ccca

- *1. Strong EPS Growth Despite Challenging Macroeconomic Conditions:** Linde has consistently delivered over **10% EPS growth** even during industrial recessions, driven by its diverse earnings algorithm comprising backlog contributions (**1%-2% EPS growth**), proactive pricing and productivity measures (**4%-6%**), potential volume upticks, and share buybacks (**2%**). The company expresses high confidence in sustaining this growth going forward.  **[LIN_3396180_5]**
- *2. Resilient Business Model with Defensive Portfolio and Large Backlog:** Approximately **75% of Linde's business** is locked into contracts or serves resilient end markets like food and beverage (which grew **8% year-over-year**) and healthcare, providing stability even when industrial activity slows down. Additionally, a substantial **$7.9 billion backlog** of contracted projects underpins future growth, with significant projects like **TSMC Phase 1** starting to contribute to earnings.  **[LIN_3396180_17]**
- *3. Strategic Investments and Competitive Advantages Positioning for Future Growth:** Linde is leveraging its significant pipeline network infrastructure in the **U.S. Gulf Coast**, developed over several decades, as a competitive advantage, particularly for future growth in low-carbon hydrogen developments. The company is also progressing with decarbonization initiatives, including a planned **$3 billion investment** to decarbonize its own operations, aligning with its long-term targets and potentially unlocking new growth opportunities in the energy transition.  **[LIN_3396180_9]** **[LIN_3396180_16]**

86351deaabc3db9f1b7900021c6819c85ac65b0439dd3b50298acfaed0ff5b0f

1. **Guidance and Outlook**  
   **Q:** Has anything softened in the full-year outlook?  
   **A:** Management noted that while they had a strong start to the year, there is no improvement expected in the economy from current levels. Recent months have been stagnant or declining in some regions. They updated their guidance to reflect this and held it for the remainder of the year. Despite easier year-over-year comparisons in the second half, they are not forecasting an improvement and have decided to be cautious. They emphasized there are **no catalysts** to change the outlook at this time. If conditions improve, they will see the benefit, but for now, they are focused on mitigating any deterioration. **[LIN_3382107_6]**

2. **EMEA Margins and Pricing**  
   **Q:** How sustainable are the higher EMEA margins and what's the pricing outlook in Europe?  
   **A:** Management highlighted that EMEA margins are now ahead of the Americas, attributing this to a combination of factors including price management, cost control, and spread management. They believe these margins are sustainable and serve as a target for other segments. On pricing, they focus on **product pricing rather than surcharges**, translating any surcharges into product pricing to ensure sustainability. The pricing actions are reflected consistently and are expected to continue. **[LIN_3382107_7]**

3. **Volume Growth and CapEx Plans**  
   **Q:** With volumes down, why not increase CapEx instead of lowering it?  
   **A:** The company is taking productivity actions across the board in response to the current industrial environment. The reduction in CapEx is driven by optimization efforts consistent with weak industrial activity. They are pushing on growth initiatives and if high-quality projects arise, they are willing to invest. However, they are ensuring that all CapEx is justified and aligned with current market conditions. **[LIN_3382107_9]**

4. **Electronics Market Outlook**  
   **Q:** What is the outlook for the electronics business?  
   **A:** Electronics constitute just under **10%** of their overall portfolio, with **30%** of the backlog invested in this sector. Management expects a recovery in the electronics market in the second half of the year, driven by AI chips and data centers. They have not included this anticipated recovery in their guidance but are seeing signs of bottoming out in Asia, which points to potential momentum building up later in the year. **[LIN_3382107_4]**

5. **Clean Energy Projects and OCI Collaboration**  
   **Q:** What's the status of low-carbon hydrogen projects, particularly with OCI?  
   **A:** The momentum on clean energy projects is moderating as more effort is placed on feasibility studies to ensure diligence before reaching FID (Final Investment Decision). Only about **7%** of announced projects make it to FID, indicating a focus on high-quality projects progressing, though they may take longer. Their pipeline remains solid, expecting to make investment decisions around **$8-10 billion** over the next few years. Regarding the OCI project, they have contracted with ExxonMobil for CO₂ sequestration and will use their carbon capture technology to capture and condition CO₂ before handing it over for sequestration. **[LIN_3382107_5]**

6. **Americas Performance and Segment Outlook**  
   **Q:** How did the Americas segment perform, and what's the outlook?  
   **A:** In the U.S., base volumes were largely flat to slightly negative. Manufacturing declined about mid-single digits year-over-year, while chemicals and energy were up mid-single digits due to planned outages last year. Packaged gas volumes were down year-over-year, mainly due to softer demand from electronics and timing in aerospace supply, but were flat sequentially. Hard goods were down mid-single digits year-over-year on lower equipment sales but also flat sequentially. Hydrogen demand remains **extremely strong** in the U.S. Gulf Coast, with refiners and petrochemical customers running at **record levels**. Looking ahead, the Americas are expected to be largely flat to slightly positive in the second quarter. **[LIN_3382107_6]**

7. **Project Intake and Backlog**  
   **Q:** Is the lower project intake due to focusing only on high-quality projects?  
   **A:** The current sale of gas backlog is about **$5 billion**, and they plan to start up **$1.5-2 billion** worth of projects this year. They expect to add back into the backlog to end the year close to the **$5 billion** mark, indicating higher order intake later in the year. While they do focus on high-quality projects, they maintain a healthy order intake pipeline and feel confident about their position given their leading engineering capabilities. **[LIN_3382107_16]**

8. **APAC Price vs. Cost Environment**  
   **Q:** How is the pricing environment balancing with costs in APAC?  
   **A:** In APAC, particularly China, they are experiencing deflationary conditions. Volumes are flattish, and pricing is also flattish, but costs are coming down, resulting in a positive spread. They had anticipated this and took cost actions several quarters ago. Other regions like India and Australia are following the model closely. Despite these conditions, **margins are still expanding** in APAC, reflecting effective management of the price-cost balance. **[LIN_3382107_13]**

9. **Acquisition Strategy for Network Density**  
   **Q:** Are there opportunities to increase network density through acquisitions?  
   **A:** The company is committed to tuck-in acquisitions globally to enhance network density, which guides their decision-making. They have a track record of successful acquisitions, such as nexAir in the U.S., and continue to pursue similar opportunities in the U.S. and other regions including Asia, Australia, China, Eastern Europe, the Middle East, and Western Europe. Regulatory considerations are taken into account, but they see ample opportunities without significant pushback. **[LIN_3382107_14]**

10. **Decaptivation and Latin America Investments**  
    **Q:** What's the impact of decaptivating assets and investing in Latin America?  
    **A:** They have decaptivated a plant from a large steel customer, which enhances reliability and efficiency by bringing assets into their network. Such opportunities must meet their investment criteria and are selectively pursued. The timing benefits are realized immediately. In Brazil, they are investing in electrolyzer projects due to the availability of competitively priced renewable energy, which makes green hydrogen economically viable. High natural gas prices in Brazil make green hydrogen an attractive option for customers seeking to decarbonize. **[LIN_3382107_12]**

11. **Pricing Philosophy and Market Share Impact**  
    **Q:** Does your pricing strategy affect market share?  
    **A:** Their pricing strategy focuses on managing the spread between price and inflation, tracking globally weighted inflation, and converting price increases into product pricing rather than relying on surcharges. This approach ensures sustainable pricing actions across merchant and packaged gases. While they did not explicitly state the impact on market share, consistent pricing actions and effective spread management could contribute to a competitive advantage. 

3e811deb311dc2fe62df7a281022817dca97fee57188998c2c7f374c9e308ee3

- **Declining base volumes due to weak industrial production, particularly in EMEA, with volumes down mid-single digit year-on-year**.  **[LIN_3382107_9]**  The company does not expect significant improvement in industrial production in the near term.  **[LIN_3382107_6]**
- **Manufacturing and healthcare segments in the Americas experienced declines**, including a **mid-single-digit decrease in manufacturing volumes** and **rationalization of homecare equipment offerings impacting healthcare sales**.  **[LIN_3382107_9]**
- **Reduced capital expenditures due to cautious customer behavior and geopolitical uncertainties**, leading to the **lowered 2024 full-year CapEx estimate to $4 billion to $4.5 billion**  **[LIN_3382107_8]** , which may impact future growth opportunities.

7debad7601425d59adc5d285dd992dc0fd16e34dc5c80e4703c7a97472a9582d

- **Linde has a strong project backlog**, including significant projects like the **$2 billion investment with Dow Chemical**, which provides secure, contracted growth and is expected to contribute **1% to 3% of EPS growth** through about **30 project startups** over the year.  **[LIN_3405049_17]** **[LIN_3405049_11]**
- **Linde leverages its technological expertise** and innovative solutions to secure large-scale decaptivation opportunities and low-carbon hydrogen projects, **enhancing network density** and creating value, as demonstrated by recent decaptivation of assets in India.  **[LIN_3405049_6]** **[LIN_3405049_11]**
- **Linde continues to demonstrate strong pricing power across its base gases** in the merchant and packaged gases businesses, sustaining positive pricing even in challenging economic conditions.  **[LIN_3405049_10]**

535d0ddca827b186195c2708f574bc183f07c668f52f24b3e813106340b50db6

- **Linde is experiencing mid-single-digit declines in hard goods sales, reflecting a broader industrial weakness in manufacturing sectors globally.**  **[LIN_3405049_22]**
- **The company anticipates continued economic weakness, with no meaningful catalysts for improvement, and has initiated targeted cost reductions affecting approximately 2% of its global workforce.**  **[LIN_3405049_1]**
- **Recovery in the electronics sector is moving slower than expected, indicating potential challenges in this key market segment.**  **[LIN_3405049_16]**

915d7f26deeac77a31ac78e6eb92b2d1eb41754b46d32ecdc13cb4b032ec8919

- **Slow recovery and lack of momentum in China could hinder Linde's growth**, as management does not expect significant improvement in 2024, particularly in key sectors like steel and manufacturing.  **[LIN_3371987_5]**
- **Potential deindustrialization and negative volume trends in EMEA may pose risks to maintaining margins and future growth**. Management acknowledges the region hasn't been a growth story, and long-term deindustrialization could impact profitability.  **[LIN_3371987_14]**
- **Flat volumes over multiple quarters indicate limited organic growth**, with volumes being flat for the last five quarters, despite high returns on capital, suggesting limitations in growth opportunities without accepting lower-return investments.  **[LIN_3371987_9]**

a4f5c5e31ad78cad3916153b98a90eee107b8dbb9d00751123d8ea96527321b6

- **Lower order intake**, with the order intake being the lowest since Q2 2020 at **$300 million**, as customers are taking longer to reach final investment decisions (FIDs), potentially impacting future growth.  **[LIN_3396180_7]**
- **Deflationary conditions in China** continue to create challenges, leading to pricing pressure, **lower demand from the electronics segment**, and increased helium supply from Russia affecting pricing.  **[LIN_3396180_18]**
- **Sluggish industrial activity in the Americas**, with **hard goods sales declining year-over-year in the low single digits**, indicating a **softer manufacturing environment expected to continue for the next couple of quarters**.  **[LIN_3396180_17]**

81442dae369a97893e359989017c4b60ede0f69bf99e0d07e079a5af5e47181b

- **Electronics market poised for recovery**, with Linde expecting momentum in the second half of the year, led by AI chips and data centers. Electronics comprise **about 10%** of Linde's portfolio, with **30% of the backlog** invested in this sector. The company has seen **decent electronics performance in China and rest of Asia**.  **[LIN_3382107_4]**
- **Strategic growth through tuck-in acquisitions**, enhancing network density. Linde is committed to pursuing acquisitions globally, with successful integration of **nexAir** in the Southeast U.S., a very attractive market. This strategy provides good growth opportunities across various regions.  **[LIN_3382107_14]**
- **Robust project pipeline**, especially in traditional projects and clean energy. Linde has a healthy order intake pipeline and aims to maintain a **$5 billion backlog** by the end of the year, indicating strong future growth prospects. The company is pursuing projects in **green steel** and hydrogen supply, expanding its footprint in decarbonization initiatives.  **[LIN_3382107_16]** **[LIN_3382107_15]** **[LIN_3382107_19]**

074a936ad38212f8e87e06485a03b402867d0ab634ad5660c74b88f6f9577a45

Linde PLC (LIN)

Financials