About Linde

About Linde

The Linde Group

In the 2017 financial year, The Linde Group generated revenue of EUR 17,113 bn, making it one of the leading gases and engineering companies in the world, with around 58,000 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 company comprises two divisions: Gases and Engineering. The Gases Division, which is the larger of the two, has three operating segments: EMEA (Europe, Middle East and Africa), Asia/Pacific and Americas. These segments are further subdivided into nine Regional Business Units (RBUs). In addition, Linde has established a Centre of Excellence (CoE) for the Gases Division which is centrally managed and operates across the regions. The company has also set up the Group-wide Opportunity & Project Development function in order to take better advantage of business opportunities.

Gases Division

Linde 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. 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 technology.

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 our 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 for projects in a wide variety of fields: in the petrochemical and chemical industries, in refineries and fertiliser factories, 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 2017 financial year, the revenue of The Linde Group from continuing operations was EUR 17.113 bn (2016: EUR 16.948 bn). The main factors contributing to this increase were ongoing positive trends in the EMEA and Asia/Pacific segments and the greater contribution made to revenue by the Engineering Division. Group operating profit from continuing operations rose by 2.8 percent to EUR 4.213 bn (2016: EUR 4.098 bn). After adjusting for exchange rate effects arising on the translation of local currencies into the euro, Group revenue was 2.1 percent higher than in 2016. Group operating profit increased by 4.1 percent after adjusting for exchange rate effects. At 24.6 percent, the Group operating margin was 40 basis points higher than the figure for 2016 of 24.2 percent. Contributing to this improvement were the measures adopted as part of the Group-wide efficiency programmes introduced by Linde (the Focus programme and LIFT). Taken together, these two programmes are expected to deliver cost savings of around EUR 550 m per annum from 2019.

The information provided above relates solely to continuing operations. As the business of the logistics service provider Gist is due to be sold, it has been treated as a discontinued operation.

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Linde financial highlights1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

2016

 

2015

 

2014

 

2013

1

In line with the information in the Financial Report 2017, the figures provided for the years 2015, 2016 and 2017 exclude the business of the logistics service provider Gist, as it has been reported as a discontinued operation.

2

The share price-related information for the 2017 financial year is based on the shares in Linde that were submitted for exchange (ISIN DE000A2E4L75), which have been listed since 15 August 2017.

3

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

Lagebericht 2014

Included in the audited Non-Financial Report

Geprüft von KPMG

Audited by KPMG

Share2

 

 

 

 

 

 

 

 

 

 

Closing price

 

194.65

 

156.10

 

133.90

 

154.20

 

152.05

Year high

 

197.00

 

163.55

 

193.85

 

157.30

 

153.90

Year low

 

155.50

 

115.85

 

128.05

 

139.15

 

128.60

Market capitalisation (at year-end closing price)

€ million

 

36,134

 

28,978

 

24,857

 

28,625

 

28,219

No. of shares (at 31 December)

000s

 

185,638

 

185,638

 

185,638

 

185,638

 

185,588

Cash dividend per share

 

7.00

 

3.70

 

3.45

 

3.15

 

3.00

 

 

 

 

 

 

 

 

 

 

 

 

Group

 

 

 

 

 

 

 

 

 

 

Revenue

€ million

 

17,113

 

16,948

 

17,345

 

17,047

 

16,655

In Germany

%

 

7.4

 

7.2

 

7.5

 

7.4

 

7.9

Outside Germany

%

 

92.6

 

92.8

 

92.5

 

92.6

 

92.1

Operating profit3

€ million

 

4,213

 

4,098

 

4,087

 

3,920

 

3,966

Operating margin

%

 

24.6

 

24.2

 

23.6

 

23.0

 

23.8

EBIT

€ million

 

1,944

 

2,075

 

2,029

 

1,885

 

2,171

Profit for the year – attributable for Linde AG shareholders

€ million

 

1,404

 

1,206

 

1,133

 

1,162

 

1,430

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure (excluding financial assets)

€ million

 

1,766

 

2,004

 

2,036

 

1,954

 

2,268

Equity ratio

%

 

44.9

 

44.0

 

43.7

 

41.4

 

41.5

Return on capital employed (ROCE)

%

 

10.2

 

9.4

 

9.5

 

9.5

 

9.7

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expenses

€ billion

 

Lagebericht 2014 3,780

 

Lagebericht 2014 3,724

 

3,829

 

3,536

 

3,423

Personnel expenses (per employee)

€ 1,000

 

65.6

 

62.4

 

64.1

 

53.9

 

53.9

Pension costs

€ million

 

Lagebericht 2014 291

 

Lagebericht 2014 293

 

278

 

293

 

281

Donations

€ million

 

Geprüft von KPMG 2.1

 

2.7

 

2.4

 

2.8

 

2.7

 

 

 

 

 

 

 

 

 

 

 

 

Gases Division

 

 

 

 

 

 

 

 

 

 

Revenue

€ million

 

14,988

 

14,892

 

15,168

 

13,982

 

13,971

Operating profit3

€ million

 

4,268

 

4,210

 

4,151

 

3,835

 

3,846

Operating margin

%

 

28.5

 

28.3

 

27.4

 

27.4

 

27.5

 

 

 

 

 

 

 

 

 

 

 

 

Engineering Division

 

 

 

 

 

 

 

 

 

 

Revenue

€ million

 

2,388

 

2,351

 

2,594

 

3,074

 

2,879

Operating profit3

€ million

 

220

 

196

 

216

 

300

 

319

Operating margin

%

 

9.2

 

8.3

 

8.3

 

9.8

 

11.1

GRI Indicators