About Linde

The Linde Group

In the 2013 financial year, The Linde Group generated revenue of EUR 16.655 billion, making it the largest gases and engineering company in the world with approximately 63,500 employees working in more than 100 countries worldwide. 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.

Organisation

The Group comprises three divisions: Gases and Engineering (the two core divisions) and Other Activities (logistics services company Gist). The largest division, Gases, has three reportable segments – EMEA (Europe, Middle East and Africa), Asia/Pacific and the Americas. These are divided into seven Regional Business Units (RBUs)1. The Gases Division also includes the two Global Business Units (GBUs) Healthcare (medical gases, medical devices, clinical care and related services) and Tonnage (on-site supply of gases to major customers), as well as the Business Area (BA) 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 Healthcare business (medical gases and services), and is a leading global player in the development of environmentally friendly hydrogen technologies.

Engineering Division

Linde’s Engineering Division is successful throughout the world, with its focus on 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.

1 The new segment structure applies as from 1 January 2014.

The Linde World

Europe

  • München: Unternehmenszentrale
  • Pullach: Headquarters Regionen Continental & Northern Europe, Eastern Europe & Middle East, Linde Engineering
  • Guildford, UK: Headquarters UK
  • Basingstoke, UK: Headquarters Gist
26,324 employees
EUR 6,416 million revenue by location of customer

Americas

  • Murray Hill, USA: Headquarters North America
  • Sao Paolo, Brasilia: Headquarters South America
18,542 employees
EUR 4,623 million revenue by location of customer

Africa

  • Johannesburg, South Africa: Headquarters Africa
3,948 employees
EUR 635 million revenue by location of customer

Asia

  • Singapur: Headquarters South & East Asia
  • Shanghai: Headquarters Greater China
11,753 employees
EUR 3,560 million revenue by location of customer

Australia / Pacific

  • North Ryde, Australia: Headquarters South Pacific
2,921 employees
EUR 1,421 million revenue by location of customer

Business Review

In the 2013 financial year, Group revenue rose by 5.2 percent to EUR 16.655 billion (2012: EUR 15.833 billion). After adjusting for exchange rate effects (which equate to revenue of EUR 656 million), the increase in revenue was 9.7 percent. US homecare company Lincare, acquired by Linde in August 2012, contributed EUR 1.563 billion to Group revenue. The Lincare business is included in the Americas reportable segment and the Healthcare product area within the Gases Division.

Linde was able to reinforce its profitability at a high level and increased its Group operating profit (EBITDA) in the 2013 financial year by 7.6 percent to EUR 3.966 billion (2012: EUR 3.686 billion). The Group operating margin rose to 23.8 percent, higher than the prior-year figure of 23.3 percent. Linde’s profit for the period (after deducting the tax expense) in the 2013 financial year was EUR 1.430 billion (2012: EUR 1.341 billion). Return on capital employed (ROCE) in 2013 was 9.7 percent (2012: 10.2 percent).

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Linde financial highlights

 

 

 

 

 

 

 

 

 

2013

 

2012
adjusted1

1

Adjusted for the effects of the first-time retrospective application of new or revised IFRSs. See also Note 7 in the Notes to the Group financial statements of the Linde Group Financial Report 2013.

2

EBIT adjusted for amortisation of intangible assets and depreciation of tangible assets.

3

Based on the weighted average number of shares.

Group

 

 

 

 

 

Revenue

€ million

 

16,655

 

15,833

Operating profit2

€ million

 

3,966

 

3,686

Operating margin

%

 

23.8

 

23.3

EBIT

€ million

 

2,171

 

2,055

Profit for the year

€ million

 

1,430

 

1,341

Return on capital employed (ROCE)

%

 

9.7

 

10.2

 

 

 

 

 

 

Gases Division

 

 

 

 

 

Revenue

€ million

 

13,971

 

13,214

Operating profit2

€ million

 

3,846

 

3,566

Operating margin

%

 

27.5

 

27.0

 

 

 

 

 

 

Engineering Division

 

 

 

 

 

Revenue

€ million

 

2,879

 

2,561

Operating profit2

€ million

 

319

 

312

Operating margin

%

 

11.1

 

12.2

 

 

 

 

 

 

Share

 

 

 

 

 

Closing price

 

152.05

 

132.00

Year high

 

153.90

 

136.15

Year low

 

128.60

 

114.20

Market capitalisation
(at year-end closing price)

€ million

 

28,219

 

24,445

Earnings per share – undiluted3

 

7.10

 

6.93

Number of shares outstanding as at 31.12.

000s

 

185,588

 

185,189

Customers

The Linde Group works with companies in virtually every industry sector. We supply gases and plants to customers in the food and drink, steel and automobile, healthcare, construction, electronics and solar industries.

Business segments – Gases Division

Food & beverages

 

Chemistry & energy

 

Metallurgy & glass

 

Manu­facturing industry

 

Electronics

 

Healthcare

 

Others

Aquaculture & Water Treatment

 

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 Chemistry

 

Steel

 

Light Metal Fab. & Prod.

 

 

 

Care Concepts

 

 

 

 

 

 

Other Metallurgy & Glass

 

Other manu­facturing