About Linde

About Linde

The Linde Group

In the 2014 financial year, The Linde Group generated revenue of EUR 17.047 billion, making it the largest gases and engineering company in the world with approximately 65,500 employees working in more than 100 countries worldwide. Our strategy is geared towards long-term profitable growth and focuses on the expansion of our international business with forward-looking products and services. We act responsibly towards our shareholders, business partners, employees, society and the environment – in every one of our business areas, regions and locations across the globe. We are 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 (our logistics services company Gist). The largest division, Gases, has three reportable segments: EMEA (Europe, Middle East and Africa), Asia/Pacific and the Americas. These reportable segments are further subdivided into nine Regional Business Units (RBUs). In addition, we have established five Global Governance Centres (GGCs) for the Gases Division which are centrally managed and operate across the regions: GGC Merchant & Packaged Gases (liquefied gases and cylinder gas), GGC Electronics (electronic gases), GGC Healthcare, GGC Operations and GGC Deliver. Linde has also set up the Group-wide function Opportunity & Project Development in order to take better advantage of business opportunities.1

Gases Division

The Linde Group is a world leader in the international gases market. We offer a wide range of compressed and liquefied gases as well as chemicals, and we are 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. We are also investing in the expansion of our Healthcare business (medical gases and services) and we are 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 promising market segments such as olefin, natural gas, air separation, hydrogen and synthesis gas plants. In contrast to virtually all competitors, we can rely on our 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 RBU structure applies as from 15 January 2015.

The Linde World

Business review

Linde achieved a 2.4 percent increase in Group revenue in the 2014 financial year to EUR 17.047 bililon (2013: EUR 16.655 billion). After adjusting for the impact of currency fluctuations, equivalent to revenue of EUR 346 million, the increase in Group revenue was 4.5 percent. Group operating profit (EBITDA) was EUR 3.920 billion, which was not quite as high as the prior-year figure of EUR 3.966 billion). Unfavourable exchange rate effects also need to be taken into consideration here. Without these distortions, which reduced earnings in the reporting year by EUR 83 million, the Group would have achieved a slight increase in Group operating profit of 1.0 percent. The Group operating margin for 2014 was 23.0 percent (2013: 23.8 percent). Return on capital employed (ROCE) adjusted for non-recurring items was 9.5 percent in the reporting year (2013: 9.7 percent). Linde’s profit for the period (after deducting the tax expense) was EUR 1.162 billion (2013: EUR 1.430 billion).

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Linde financial highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

20121

 

2011

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

Share

 

 

 

 

 

 

 

 

 

 

Closing price

 

 

154.20

 

152.05

 

132.00

 

114.95

Year high

 

 

157.30

 

153.90

 

136.15

 

125.80

Year low

 

 

139.15

 

128.60

 

114.20

 

96.16

Market capitalisation (at year-end closing price)

 

€ million

 

28,625

 

28,219

 

24,445

 

19,663

No. of shares (at 31 December)

 

000s

 

185,638

 

185,588

 

185,189

 

171,061

Cash dividend per share

 

 

3.15

 

3.00

 

2.70

 

2.50

 

 

 

 

 

 

 

 

 

 

 

Group

 

 

 

 

 

 

 

 

 

 

Revenue

 

€ million

 

17,047

 

16,655

 

15,833

 

13,787

In Germany

 

%

 

7.4

 

7.9

 

8.2

 

9.0

Outside Germany

 

%

 

92.6

 

92.1

 

91.8

 

91.0

Operating profit2

 

€ million

 

3,920

 

3,966

 

3,686

 

3,210

Operating margin

 

%

 

23.0

 

23.8

 

23.3

 

23.3

EBIT

 

€ million

 

1,885

 

2,171

 

2,055

 

1,910

Profit for the year

 

€ million

 

1,162

 

1,430

 

1,341

 

1,244

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure (excluding financial assets)

 

€ million

 

1,954

 

2,268

 

2,038

 

1,367

Equity ratio

 

%

 

41.4

 

41.5

 

39.8

 

42.0

Return on capital employed (ROCE)

 

%

 

9.5

 

9.7

 

10.2

 

11.0

 

 

 

 

 

 

 

 

 

 

 

Procurement costs

 

€ bn

 

11.6

 

11.1

 

10.9

 

10.7

Personnel expenses

 

€ bn

 

3.536

 

3.423

 

3.117

 

2.653

Personnel expenses (per employee)

 

1,000 €

 

53.9

 

53.9

 

49.7

 

52.6

Pension costs

 

€ million

 

293

 

281

 

241

 

190

Donations

 

€ million

 

2.8

 

2.7

 

2.8

 

 

 

 

 

 

 

 

 

 

 

 

Gases Division

 

 

 

 

 

 

 

 

 

 

Revenue

 

€ million

 

13,982

 

13,971

 

13,214

 

11,061

Operating profit2

 

€ million

 

3,835

 

3,846

 

3,566

 

3,041

Operating margin

 

%

 

27.4

 

27.5

 

27.0

 

27.5

 

 

 

 

 

 

 

 

 

 

 

Engineering Division

 

 

 

 

 

 

 

 

 

 

Revenue

 

€ million

 

3,074

 

2,879

 

2,561

 

2,531

Operating profit2

 

€ million

 

300

 

319

 

312

 

304

Operating margin

 

%

 

9.8

 

11.1

 

12.2

 

12.0