About Linde

About Linde

The Linde Group

In the 2016 financial year, The Linde Group generated revenue of EUR 16.948 bn, making it one of the leading gases and engineering companies in the world, with 59,715 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

Our company 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

Linde is a world leader in the international gases market. Our 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. 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 to produce noble gases.

The Linde World

Business Review

In the 2016 financial year, the revenue of The Linde Group from continuing operations came to EUR 16.948 bn (2015: EUR 17.345 bn). Group operating profit from continuing operations amounted to EUR 4.098 bn, on a par with the prior-year level of EUR 4.087 bn. In addition to the lower contribution to revenue made by the Engineering Division compared with the previous year, this development was driven, in particular, by exchange rate changes. After adjusting for these exchange rate effects, Group revenue was 0.2 percent higher than in 2015. Group operating profit increased by 2.7 percent after adjusting for exchange rate effects.

The Group operating margin came in at 24.2 percent, up by 60 basis points on the prior-year value (2015: 23.6 percent). The measures already taken to boost efficiency back in 2015 (Focus programme) also contributed to this improvement. In the three-year period from 2015 to 2017, this programme aims to reduce costs by up to EUR 180 m. We launched another Groupwide efficiency programme in 2016 (LIFT programme). This programme, which is also to run for a period of three years, is designed to generate further savings of around EUR 370 m a year. Total expenses of approximately EUR 400 m are likely to be incurred in the period leading up to the end of 2017 for the programmes. As of 2019, the two programmes combined are to result in savings of around EUR 550 m a year.

The information provided above relates exclusively to continuing operations. As the business of the logistics service provider Gist is to be sold in the coming year, it has been reported as a discontinued operation.

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Linde financial highlights1

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

2015

 

2014

 

2013

1

In line with the information in the Financial Report 2016, the figures provided for the years 2015 and 2016 exclude the business of the logistics service provider Gist, as it has been reported as a discontinued operation.

2

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

Share

 

 

 

 

 

 

 

 

 

Closing price

 

156.10

 

133.90

 

154.20

 

152.05

Year high

 

163.55

 

193.85

 

157.30

 

153.90

Year low

 

115.85

 

128.05

 

139.15

 

128.60

Market capitalisation (at year-end closing price)

€ million

 

28,978

 

24,857

 

28,625

 

28,219

No. of shares (at 31 December)

000s

 

185,638

 

185,638

 

185,638

 

185,588

Cash dividend per share

 

3.70

 

3.45

 

3.15

 

3.00

 

 

 

 

 

 

 

 

 

 

Group

 

 

 

 

 

 

 

 

 

Revenue

€ million

 

16,948

 

17,345

 

17,047

 

16,655

In Germany

%

 

7.2

 

7.5

 

7.4

 

7.9

Outside Germany

%

 

92.8

 

92.5

 

92.6

 

92.1

Operating profit2

€ million

 

4,098

 

4,087

 

3,920

 

3,966

Operating margin

%

 

24.2

 

23.6

 

23.0

 

23.8

EBIT

€ million

 

2,075

 

2,029

 

1,885

 

2,171

Profit for the year – attributable for Linde AG shareholders

€ million

 

1,206

 

1,133

 

1,162

 

1,430

 

 

 

 

 

 

 

 

 

 

Capital expenditure (excluding financial assets)

€ million

 

2,004

 

2,036

 

1,954

 

2,268

Equity ratio

%

 

44.0

 

43.7

 

41.4

 

41.5

Return on capital employed (ROCE)

%

 

9.4

 

9.5

 

9.5

 

9.7

 

 

 

 

 

 

 

 

 

 

Personnel expenses

€ bn

 

3.724

 

3.829

 

3.536

 

3.423

Personnel expenses (per employee)

1,000 €

 

62.4

 

64.1

 

53.9

 

53.9

Pension costs

€ million

 

248

 

278

 

293

 

281

Donations

€ million

 

2.7

 

2.4

 

2.8

 

2.7

 

 

 

 

 

 

 

 

 

 

Gases Division

 

 

 

 

 

 

 

 

 

Revenue

€ million

 

14,892

 

15,168

 

13,982

 

13,971

Operating profit2

€ million

 

4,210

 

4,151

 

3,835

 

3,846

Operating margin

%

 

28.3

 

27.4

 

27.4

 

27.5

 

 

 

 

 

 

 

 

 

 

Engineering Division

 

 

 

 

 

 

 

 

 

Revenue

€ million

 

2,351

 

2,594

 

3,074

 

2,879

Operating profit2

€ million

 

196

 

216

 

300

 

319

Operating margin

%

 

8.3

 

8.3

 

9.8

 

11.1