Corporate profile

The Linde Group is a world-leading gases and engineering company with approximately 62,000 employees in more than 100 countries worldwide. In the 2012 financial year, it generated revenue of EUR 15.280 bn. The strategy of The Linde Group is geared towards long-term, profitable growth and focuses on the expansion of its international business with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment – in every one of its business areas, regions and locations across the globe. The company is committed to technologies and products that unite the goals of customer value and sustainable development.

  • Americas
    17,954 employees
    EUR 4,339 million sales
  • EMEA (Europe, Middle East and Africa)
    21,614 employees
    EUR  7,299 million sales
  • Asia/Pacific
    11.037 employees
    EUR  3,642 million sales

Organisation

The Group comprises three divisions: Gases and Engineering (the two core divisions) and Gist (logistics services). The largest division, Gases, has three reportable segments – EMEA (Europe, Middle East and Africa), Asia/Pacific and the Americas. These are divided into eight Regional Business Units (RBUs). The Gases Division also includes the two Global Business Units (GBUs) Healthcare (medical gases and related maintenance and advisory services) and Tonnage (on-site supply of gases to major customers), as well as the two Business Areas (BAs) Merchant & Packaged Gases (liquefied and cylinder gases) and Electronics (electronic gases).

Gases Division

The Linde Group is a world leader in the international gases market. The company offers a wide range of compressed and liquefied gases as well as chemicals, and is the partner of choice across a huge variety of industries. Linde gases are used, for example, in the energy sector, steel production, chemical processing, environmental protection and welding, as well
as in food processing, glass production and electronics. The company is also investing in the expansion of its fast-growing Healthcare business (medical gases), and is a leading global player in the development of environmentally friendly hydrogen technologies.

Engineering Division

Linde Engineering is successful throughout the world, with its focus on promising market segments such as olefin, natural gas, air separation, hydrogen and synthesis gas plants. In contrast to virtually all competitors, the company can rely on its own extensive process engineering know-how in the planning, project development and construction of turnkey industrial plants. Linde plants are used in a wide variety of fields: in the petrochemical and chemical industries, in refineries and fertiliser plants, to recover air gases, to produce hydrogen and synthesis gases, to treat natural gas and in the pharmaceutical industry.

Business review

In the 2012 financial year, Group revenue rose by 10.8 percent to EUR 15.280 bn (2011: EUR 13.787 bn). After adjusting for exchange rate effects, the increase was 6.4 percent. The contribution to revenue made by the newly-acquired Lincare business was EUR 630 m. The share of revenue from joint ventures (not included in Group revenue in accordance with the accounting rules) was EUR 535 m in 2012 (2011: EUR 464 m). Linde achieved an increase in Group operating profit (EBITDA) of 10.0 percent to EUR 3.530 bn (2011: EUR 3.210 bn). The Group operating margin in the 2012 financial year was 23.1 percent, almost as high as the level achieved in 2011 of 23.3 percent.

The rigorous implementation of HPO, the Group’s holistic programme for sustainable process optimisation and productivity gains, contributed towards reinforcing Linde’s profitability at a high level. In the financial years from 2009 to 2012, these activities resulted in total gross cost savings of around EUR 780 m.

Linde financial highlights

 

 

 

 

 

 

 

 

 

January to December 2012

 

2011

1

Adjusted for the effects of the BOC purchase price allocation.

2

EBITDA including share of profit or loss from associates and joint ventures.

Share

 

 

 

 

 

Closing price

 

132.00

 

114.95

Year high

 

136.15

 

125.80

Year low

 

114.20

 

96.16

Market capitalisation (at year-end closing price)

€ million

 

24,445

 

19,663

Adjusted earnings per share1

 

7.89

 

7.71

Earnings per share – undiluted

 

7.03

 

6.88

Number of shares outstanding

(in 000s)

 

185,189

 

171,061

 

 

 

 

 

 

Group

 

 

 

 

 

Revenue

€ million

 

15,280

 

13,787

Operating profit2

€ million

 

3,530

 

3,210

Operating margin

%

 

23.1

 

23.3

EBIT

€ million

 

1,992

 

1,910

Profit for the year

€ million

 

1,324

 

1,244

 

 

 

 

 

 

Gases Division

 

 

 

 

 

Revenue

€ million

 

12,591

 

11,061

Operating profit

€ million

 

3,403

 

3,041

Operating margin

%

 

27.0

 

27.5

 

 

 

 

 

 

Engineering Division

 

 

 

 

 

Revenue

€ million

 

2,561

 

2,531

Operating profit

€ million

 

312

 

304

Operating margin

%

 

12.2

 

12.0

> More on Linde’s business performance and on HPO in the Financial Report

Customers

The Linde Group manufactures gases and engineers plants for customers in the food and drinks, steel and automobile, healthcare, construction, electronics and solar industries. A broad, well-balanced customer base ensures stability.

Business segments – Gases Division

FOOD & BEVERAGES

 

CHEMISTRY & ENERGY

 

METALLURGY & GLASS

 

MANUFAC­TURING INDUSTRY

 

ELECTRONICS

 

HEALTHCARE

 

OTHERS

 

 

 

 

 

 

 

 

 

 

 

 

 

Aquaculture & water

 

Energy

 

Glass & fibre optics

 

Aerospace

 

Solar

 

Hospital Care

 

Education & research

Beverages

 

Fine & petro­chemistry

 

Heat treatment

 

Automotive

 

Semi­conductor

 

Homecare

 

Retail

Food

 

Pharma

 

Non-ferrous

 

Heavy construction & machinery

 

Chip packaging

 

Gas Therapies

 

Distributors

Other F&B

 

Other chemistry

 

Steel

 

Light metal fab. & prod.

 

 

 

Care Concepts REMEO®

 

 

 

 

 

 

Other M&G

 

Other manufac­turing