About Linde

About Linde

The Linde Group

In the 2015 financial year, The Linde Group generated revenue of EUR 17.944 bn, making it one of the leading gases and engineering companies in the world, with approximately 64,500 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 (the logistics services company Gist). The largest division, Gases, has three segments: EMEA (Europe, Middle East and Africa), Asia/Pacific and the Americas. These segments are further subdivided into nine Regional Business Units (RBUs). In addition, Linde has 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. The Group has also set up the Group-wide function Opportunity & Project Development in order to take better advantage of business opportunities.

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 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 to produce noble gases.

The Linde World

Business Review

Linde achieved a 5.3 percent increase in Group revenue in the 2015 financial year to EUR 17.944 bn (2014: EUR 17.047 bn). Positive exchange rate effects had an impact here. In particular, the exchange rates of certain currencies (the US dollar, the British pound and the Chinese renminbi) to the euro moved significantly, especially in the first six months of the year. This created positive exchange rate effects arising on the translation of various local currencies into the reporting currency (the euro). After adjusting for exchange rate effects, Group revenue was 2.3 percent below the figure for the prior year.

As far as Group operating profit is concerned, Linde achieved a value that was up by 5.4 in a year-on-year comparison to EUR 4.131 bn (2014: EUR 3.920 bn). Exchange rate effects also need to be taken into consideration here. If an adjustment were to be made for these effects, the Group operating profit would have dropped by 2.4 percent. The Group operating margin in 2015 was 23.0 percent (2014: 23.0 percent).

Return on capital employed (ROCE) after adjusting for non-recurring items was 9.4 percent in 2015 (2014: 9.5 percent). Linde’s profit for the year (after deducting the tax expense) was EUR 1.252 bn (2014: EUR 1.162 bn).

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Linde financial highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2013

 

20121

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 (before non-recurring items) adjusted for amortisation of intangible assets and depreciation of tangible assets

Share

 

 

 

 

 

 

 

 

 

 

Closing price

 

 

133.90

 

154.20

 

152.05

 

132.00

Year high

 

 

193.85

 

157.30

 

153.90

 

136.15

Year low

 

 

128.05

 

139.15

 

128.60

 

114.20

Market capitalisation (at year-end closing price)

 

€ million

 

24,857

 

28,625

 

28,219

 

24,445

No. of shares (at 31 December)

 

000s

 

185,638

 

185,638

 

185,588

 

185,189

Cash dividend per share

 

 

3.45

 

3.15

 

3.00

 

2.70

 

 

 

 

 

 

 

 

 

 

 

Group

 

 

 

 

 

 

 

 

 

 

Revenue

 

€ million

 

17,944

 

17,047

 

16,655

 

15,833

In Germany

 

%

 

7.3

 

7.4

 

7.9

 

8.2

Outside Germany

 

%

 

92.7

 

92.6

 

92.1

 

91.8

Operating profit2

 

€ million

 

4,131

 

3,920

 

3,966

 

3,686

Operating margin

 

%

 

23.0

 

23.0

 

23.8

 

23.3

EBIT

 

€ million

 

2,043

 

1,885

 

2,171

 

2,055

Profit for the year

 

€ million

 

1,252

 

1,162

 

1,430

 

1,341

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure (excluding financial assets)

 

€ million

 

1,936

 

1,954

 

2,268

 

2,038

Equity ratio

 

%

 

43.7

 

41.4

 

41.5

 

39.8

Return on capital employed (ROCE)

 

%

 

9.4

 

9.5

 

9.7

 

10.2

 

 

 

 

 

 

 

 

 

 

 

Procurement costs

 

€ bn

 

10.5

 

11.6

 

11.1

 

10.9

Personnel expenses

 

€ bn

 

3.928

 

3.536

 

3.423

 

3.117

Personnel expenses (per employee)

 

1,000 €

 

60.9

 

53.9

 

53.9

 

49.7

Pension costs

 

€ million

 

307

 

293

 

281

 

241

Donations

 

€ million

 

2.4

 

2.8

 

2.7

 

2.8

 

 

 

 

 

 

 

 

 

 

 

Gases Division

 

 

 

 

 

 

 

 

 

 

Revenue

 

€ million

 

15,168

 

13,982

 

13,971

 

13,214

Operating profit2

 

€ million

 

4,151

 

3,835

 

3,846

 

3,566

Operating margin

 

%

 

27.4

 

27.4

 

27.5

 

27.0

 

 

 

 

 

 

 

 

 

 

 

Engineering Division

 

 

 

 

 

 

 

 

 

 

Revenue

 

€ million

 

2,594

 

3,074

 

2,879

 

2,561

Operating profit2

 

€ million

 

216

 

300

 

319

 

312

Operating margin

 

%

 

8.3

 

9.8

 

11.1

 

12.2