展品99.1
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linde報告2024年第二季度業績
第二季度要點
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| ➢ | 銷售額83億美元，增長1％，基礎銷售增長3％ |
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| ➢ | 營業利潤22億美元，調整後營業利潤24億美元，增長6％ |
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| ➢ | 營業利潤率26.4％；調整後營業利潤率29.3％，提高140個基點 |
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| ➢ | 每股收益3.44美元，增長8％；調整後每股收益3.85美元，同比增長8％ |
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| ➢ | 2024年全年調整後每股收益指引為15.40美元至15.60美元，不包括外匯期貨，年增長率為9%至11% |
2024年8月2日，linde plc（納斯達克：LIN）報告了2024年第二季度凈利潤為166300萬美元，每股摊薄盈利為3.44美元，分別較去年增長6%和8%。除linde AG購買會計影響和其他費用外，調整後凈利潤為185900萬美元，較去年同期增加了6%。調整後每股盈利為3.85美元，較去年同期增長了8%。
linde在第二季度的銷售額為8億2670百萬美元，較去年同期增長1%。與去年同期相比，由於成交量增長平穩，基礎銷售額從價格達成上升了3%。
第二季度營業利潤為218400萬美元。調整後的營業利潤為242200萬美元，較去年同期增長6％，主要得益於各板塊的價格上漲和持續的生產力倡議。調整後的營業利潤率為29.3％，比去年同期高出140個基點。
第二季度營運現金流為192900萬美元，較去年同期減少10％，主要是由於工程項目預付款項的時間安排。扣除113300萬美元的資本支出後，自由現金流為79600萬美元。在本季，該公司通過分紅派息和股票回購向股東返還210000萬美元，扣除發行。
關於財務業績和業務展望，行政總裁Sanjiv Lamba表示：“儘管面臨挑戰的宏觀環境，linde團隊再次交出高質素業績，每股收益增長8％，投資回報率提高至25.7％，營運利潤率擴大了140個基點，達到了29.3％。這展現了我們持續發展綜合工業氣體模式並開創優質增長機會的能力。”
Lamba繼續說道：“展望未來，經濟環境依然不確定。然而，我們處於有利地位，能贏得更多優質項目，並持續創造股東價值。”
截至2024年第三季，linde預計調整後的每股稀釋收益範圍為$3.82至$3.92，較前年同期提高5%至8%，或在排除1%估計的貨幣不利因素後為6%至9%。
對於2024年整年，公司預計調整後的稀釋每股收益區間為15.40至15.60美元，較去年同期增長8%至10%，或排除估計的1%貨幣逆風後為9%至11%。全年資本支出預計在40億至45億美元區間內，以支持增長和維護需求，包括對燃料幣項目庫存的47億美元合同銷售。
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2024年第二季度各項目結果
美洲銷售額為$365500萬元，較去年同期增加3%。與2023年第二季度相比，由於價格上漲，致使底層銷售增加了4%，而銷售量持平。營業利潤為$115900萬元，佔銷售額31.7%，較去年同期高出150個基點。
亞太地區(APAC)的銷售額為16,5700萬美元，較去年同期下降2%，主要受負面貨幣匯率影響。與2023年第二季度相比，基礎銷售穩定，因價格和成交量與去年同期持平。營業利潤為4,7400萬美元，佔銷售額的28.6%，較上年同期高出60個基點。
歐洲、中東和非洲（歐洲、中東和非洲）銷售額為209100萬美元，較上年同期下降3%。與2023年第二季度相比，底層銷售增長2%，主要由於價格上漲3%，部分抵銷1%的容積下降，主要來自金屬和礦業最終市場。營業利潤為70400萬美元，佔銷售額的33.7%，比上年同期高出450個基點。
linde Engineering的銷售額為5,4400萬美元，比去年同期增加10％，營業利潤為9,600萬美元，佔銷售額的17.6％。該季的訂單總額為3,3600萬美元，而設備的第三方銷售积压為32億美元。
業績會
今天上午9點舉行linde2024年第二季度業績電話會議。
| 現場線上會議 | 美國免費撥打號碼: 1 888 770 7292 英國免費撥打號碼: 0800 358 0970 存取代碼: 6877110 |
| 現場網路轉播（僅供收聽） | https://www.linde.com/investors/financial-reports |
電話會議使用的材料也可以在網站上找到。
關於linde
Linde是一家領先的全球工業氣體和工程公司，於2023年的銷售額達到330億美元。我們每天都活出我們的使命，通過提供高質量的解決方案、技術和服務，幫助我們的客戶更成功，並助力維持、減碳和保護我們的地球。
該公司提供各種產業市場，如化學品、能源、食品飲料、電子、醫療、製造業、金屬和礦業。linde的工業氣體和技術應用廣泛，包括生產清潔氫氣和對能源轉型至關重要的碳捕獲系統，救生醫用氧氣以及高純度和特種氣體用於電子產品。linde還提供最先進的氣體處理解決方案，以支持客戶擴張、提高效率和減少排放。
欲瞭解有關該公司及其產品與服務的更多資訊，請瀏覽 www.linde.com
| 第2頁，共10頁 |
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調整後金額、自由現金流和資本報酬率均為非通用會計原則之衡量標準。請參閱附件，瞭解調整後金額的非通用會計原則和計算摘要。
附件：摘要非GAAP調和、損益表、資產負債表、現金流量表、分段資訊和附錄：非GAAP措施及調和。
*備註：我們提供2024年調整後每股收益（EPS）的預測。這是一個非依照經濟合作暨發展組織規定的財務指標，代表從持續營業部門衍生的稀釋後每股收益（依照經濟合作暨發展組織規定之指標），但不包括我們認為不代表我們基本業務績效的某些項目的影響，例如成本減少和其他費用，可能出售的資產或其他具有潛在重要性的項目。由於這些項目的時間和程度不確定，我們無法在不合理努力的情況下提供非依照經濟合作暨發展組織調整後EPS預測與相應依照經濟合作暨發展組織之EPS措施之間差異的對帳。
前瞻性聲明
本文件包含1995年《私人證券訴訟改革法案》所指的「前瞻性陳述」。這些前瞻性陳述通常以「預期」、「相信」、「打算」、「估計」、「期望」、「持續」、「應該」、「可能」、「計劃」、「預測」、「將」、「潛在」、「預測」等詞彙和短語來識別。這些前瞻性陳述基於管理層合理的期望和假設，發表陳述之日起，但牽涉風險和不確定性。這些風險和不確定性包括但不限於：股市整體的表現；全球和國家經濟的發展以及其他國際事件和情勢，包括貿易爭端和關稅；外匯和利率的變化；電力、天然氣和其他原材料的成本和供應情況；實現價格上漲以抵銷成本上升的能力；包括自然災害、流行病、COVID-19等大流行病和戰爭行為和恐怖主義在內的災難性事件；吸引、僱用和留住合格人員的能力；金融會計準則變化的影響；養老金計畫負債變化的影響；稅務、環保、醫療保健和其他法規以及公司所在司法管轄區的政府法規的影響；調查、訴訟和監管程序的成本和結果；可能出現的不尋常或非經常項目的影響；新產品和應用的持續及市場接受程度；競爭產品和價格的影響；主要客戶和行業未來的財務和營運表現；信息技術系統故障、網絡中斷和數據安全漏洞的影響；以及將新收購整合到業務中的有效性和速度。這些風險和不確定性可能導致未來結果或情況與調整後的預測、估計或其他前瞻性陳述有實質不同。
Linde plc assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A. Risk Factors in Linde plc’s Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 28, 2024 which should be reviewed carefully. Please consider Linde plc’s forward-looking statements in light of those risks.
| Page 3 of 10 |
LINDE PLC AND SUBSIDIARIES
SUMMARY NON-GAAP RECONCILIATIONS
(UNAUDITED)
The following adjusted amounts are Non-GAAP measures and are intended to supplement investors' understanding of the company's financial statements by providing measures which investors, financial analysts and management use to help evaluate the company's operating performance. Items which the company does not believe to be indicative of ongoing business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. See the "NON GAAP MEASURES AND RECONCILIATIONS" starting on page 9 for additional details relating to the adjustments.
| (Millions of dollars, except per share amounts) |
| Sales |
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| Operating Profit |
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| Net Income |
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| Diluted EPS |
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| Quarter Ended June 30 |
| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
| ||||||||
| Reported GAAP Amounts |
| $ | 8,267 |
|
| $ | 8,204 |
|
| $ | 2,184 |
|
| $ | 2,011 |
|
| $ | 1,663 |
|
| $ | 1,575 |
|
| $ | 3.44 |
|
| $ | 3.19 |
|
| Other charges (a) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 22 |
|
|
| — |
|
|
| (12 | ) |
|
| — |
|
|
| (0.02 | ) |
| Purchase accounting impacts - Linde AG (b) |
|
| — |
|
|
| — |
|
|
| 238 |
|
|
| 253 |
|
|
| 196 |
|
|
| 197 |
|
|
| 0.41 |
|
|
| 0.40 |
|
| Total adjustments |
|
| — |
|
|
| — |
|
|
| 238 |
|
|
| 275 |
|
|
| 196 |
|
|
| 185 |
|
|
| 0.41 |
|
|
| 0.38 |
|
| Adjusted amounts |
| $ | 8,267 |
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| $ | 8,204 |
|
| $ | 2,422 |
|
| $ | 2,286 |
|
| $ | 1,859 |
|
| $ | 1,760 |
|
| $ | 3.85 |
|
| $ | 3.57 |
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| (Millions of dollars, except per share amounts) |
| Sales |
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| Operating Profit |
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| Net Income | Diluted EPS |
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| Year to Date June 30 |
| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
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| Reported GAAP Amounts |
| $ | 16,367 |
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| $ | 16,397 |
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| $ | 4,279 |
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| $ | 3,944 |
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| $ | 3,290 |
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| $ | 3,091 |
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| $ | 6.79 |
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| $ | 6.25 |
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| Other charges (a) |
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| — |
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|
| — |
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|
| — |
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| 40 |
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| (5 | ) |
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| (39 | ) |
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| (0.01 | ) |
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| (0.08 | ) |
| Purchase accounting impacts - Linde AG (b) |
|
| — |
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|
| — |
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|
| 484 |
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| 508 |
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| 395 |
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|
| 401 |
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|
| 0.82 |
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| 0.81 |
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| Total adjustments |
|
| — |
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|
| — |
|
|
| 484 |
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| 548 |
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|
| 390 |
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| 362 |
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|
| 0.81 |
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| 0.73 |
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| Adjusted amounts |
| $ | 16,367 |
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| $ | 16,397 |
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| $ | 4,763 |
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| $ | 4,492 |
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| $ | 3,680 |
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| $ | 3,453 |
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| $ | 7.60 |
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| $ | 6.98 |
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(a) 2023 year to date charges related primarily to severance and delist charges, which were offset by a tax settlement.
(b) To adjust for purchase accounting impacts related to the merger.
| Page 4 of 10 |
LINDE PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
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| Quarter Ended June 30, |
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| Year To Date June 30, |
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| (Millions of dollars, except per share data) |
| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
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| Sales |
| $ | 8,267 |
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| $ | 8,204 |
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| $ | 16,367 |
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| $ | 16,397 |
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| Cost of sales |
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| 4,251 |
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| 4,316 |
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| 8,467 |
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| 8,747 |
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| Selling, general and administrative |
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| 840 |
|
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| 833 |
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|
| 1,700 |
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| 1,655 |
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| Depreciation and amortization |
|
| 958 |
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|
| 960 |
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|
| 1,907 |
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| 1,908 |
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| Research and development |
|
| 36 |
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| 35 |
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|
| 74 |
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| 71 |
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| Other charges |
|
| — |
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| 22 |
|
|
| — |
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|
| 40 |
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| Other income (expense) - net |
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| 2 |
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| (27 | ) |
|
| 60 |
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|
| (32 | ) |
| Operating Profit |
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| 2,184 |
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| 2,011 |
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| 4,279 |
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| 3,944 |
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| Interest expense - net |
|
| 70 |
|
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| 52 |
|
|
| 135 |
|
|
| 89 |
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| Net pension and OPEB cost (benefit), excluding service cost |
|
| (49 | ) |
|
| (45 | ) |
|
| (99 | ) |
|
| (90 | ) |
| Income Before Income Taxes and Equity Investments |
|
| 2,163 |
|
|
| 2,004 |
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|
| 4,243 |
|
|
| 3,945 |
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| Income taxes |
|
| 508 |
|
|
| 438 |
|
|
| 971 |
|
|
| 868 |
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| Income Before Equity Investments |
|
| 1,655 |
|
|
| 1,566 |
|
|
| 3,272 |
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|
| 3,077 |
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| Income from equity investments |
|
| 45 |
|
|
| 46 |
|
|
| 93 |
|
|
| 87 |
|
| Income (Including Noncontrolling Interests) |
|
| 1,700 |
|
|
| 1,612 |
|
|
| 3,365 |
|
|
| 3,164 |
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| Less: noncontrolling interests |
|
| (37 | ) |
|
| (37 | ) |
|
| (75 | ) |
|
| (73 | ) |
| Net Income – Linde plc |
| $ | 1,663 |
|
| $ | 1,575 |
|
| $ | 3,290 |
|
| $ | 3,091 |
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| Per Share Data – Linde plc Shareholders |
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| Basic earnings per share |
| $ | 3.46 |
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| $ | 3.22 |
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| $ | 6.84 |
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| $ | 6.30 |
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| Diluted Earnings per share |
| $ | 3.44 |
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| $ | 3.19 |
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| $ | 6.79 |
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| $ | 6.25 |
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| Cash dividends per share |
| $ | 1.39 |
|
| $ | 1.275 |
|
| $ | 2.78 |
|
| $ | 2.55 |
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| Weighted Average Shares Outstanding (000’s): |
|
|
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|
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|
|
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| Basic shares outstanding (000's) |
|
| 479,973 |
|
|
| 489,618 |
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| 480,943 |
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| 490,727 |
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| Diluted shares outstanding (000's) |
|
| 483,177 |
|
|
| 493,549 |
|
|
| 484,366 |
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|
| 494,685 |
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Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP.
| Page 5 of 10 |
LINDE PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
|
|
| June 30, |
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| December 31, |
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| (Millions of dollars) |
| 2024 |
|
| 2023 |
| ||
| Assets |
|
|
|
|
|
| ||
| Cash and cash equivalents |
| $ | 4,626 |
|
| $ | 4,664 |
|
| Accounts receivable - net |
|
| 5,001 |
|
|
| 4,718 |
|
| Contract assets |
|
| 226 |
|
|
| 196 |
|
| Inventories |
|
| 2,094 |
|
|
| 2,115 |
|
| Prepaid and other current assets |
|
| 896 |
|
|
| 927 |
|
| Total Current Assets |
|
| 12,843 |
|
|
| 12,620 |
|
| Property, plant and equipment - net |
|
| 24,575 |
|
|
| 24,552 |
|
| Goodwill |
|
| 26,365 |
|
|
| 26,751 |
|
| Other intangibles - net |
|
| 11,851 |
|
|
| 12,399 |
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| Other long-term assets |
|
| 4,581 |
|
|
| 4,489 |
|
| Total Assets |
| $ | 80,215 |
|
| $ | 80,811 |
|
| Liabilities and Equity |
|
|
|
|
|
|
|
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| Accounts payable |
| $ | 2,859 |
|
| $ | 3,020 |
|
| Short-term debt |
|
| 3,326 |
|
|
| 4,713 |
|
| Current portion of long-term debt |
|
| 1,261 |
|
|
| 1,263 |
|
| Contract liabilities |
|
| 1,767 |
|
|
| 1,901 |
|
| Other current liabilities |
|
| 4,291 |
|
|
| 4,820 |
|
| Total Current Liabilities |
|
| 13,504 |
|
|
| 15,717 |
|
| Long-term debt |
|
| 16,931 |
|
|
| 13,397 |
|
| Other long-term liabilities |
|
| 10,229 |
|
|
| 10,602 |
|
| Total Liabilities |
| $ | 40,664 |
|
| $ | 39,716 |
|
| Redeemable noncontrolling interests |
|
| 13 |
|
|
| 13 |
|
| Linde plc Shareholders’ Equity |
|
|
|
|
|
|
|
|
| Ordinary shares |
|
| 1 |
|
|
| 1 |
|
| Additional paid-in capital |
|
| 39,560 |
|
|
| 39,812 |
|
| Retained earnings |
|
| 10,721 |
|
|
| 8,845 |
|
| Accumulated other comprehensive income (loss) |
|
| (6,794 | ) |
|
| (5,805 | ) |
| Less: Treasury shares, at cost |
|
| (5,309 | ) |
|
| (3,133 | ) |
| Total Linde plc Shareholders' Equity |
|
| 38,179 |
|
|
| 39,720 |
|
| Noncontrolling interests |
|
| 1,359 |
|
|
| 1,362 |
|
| Total Equity |
| $ | 39,538 |
|
| $ | 41,082 |
|
| Total Liabilities and Equity |
| $ | 80,215 |
|
| $ | 80,811 |
|
| Page 6 of 10 |
LINDE PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
|
|
| Quarter Ended June 30, |
|
| Year to Date June 30, |
| ||||||||||
| (Millions of dollars) |
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
| Operations |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Net income - Linde plc |
| $ | 1,663 |
|
| $ | 1,575 |
|
| $ | 3,290 |
|
| $ | 3,091 |
|
| Add: noncontrolling interests |
|
| 37 |
|
|
| 37 |
|
|
| 75 |
|
|
| 73 |
|
| Net income (including noncontrolling interests) |
|
| 1,700 |
|
|
| 1,612 |
|
|
| 3,365 |
|
|
| 3,164 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other charges, net of payments (a) |
|
| (20 | ) |
|
| — |
|
|
| (75 | ) |
|
| (61 | ) |
| Depreciation and amortization |
|
| 958 |
|
|
| 960 |
|
|
| 1,907 |
|
|
| 1,908 |
|
| Accounts receivable |
|
| (61 | ) |
|
| (44 | ) |
|
| (422 | ) |
|
| (175 | ) |
| Contract assets and liabilities, net |
|
| (139 | ) |
|
| 183 |
|
|
| (189 | ) |
|
| 117 |
|
| Inventory |
|
| 4 |
|
|
| (26 | ) |
|
| (23 | ) |
|
| (85 | ) |
| Payables and accruals |
|
| (328 | ) |
|
| (394 | ) |
|
| (393 | ) |
|
| (458 | ) |
| Pension contributions |
|
| (13 | ) |
|
| (15 | ) |
|
| (24 | ) |
|
| (25 | ) |
| Deferred income taxes and other |
|
| (172 | ) |
|
| (126 | ) |
|
| (263 | ) |
|
| (327 | ) |
| Net cash provided by (used for) operating activities |
|
| 1,929 |
|
|
| 2,150 |
|
|
| 3,883 |
|
|
| 4,058 |
|
| Investing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures |
|
| (1,133 | ) |
|
| (859 | ) |
|
| (2,181 | ) |
|
| (1,688 | ) |
| Acquisitions, net of cash acquired |
|
| (152 | ) |
|
| (26 | ) |
|
| (152 | ) |
|
| (834 | ) |
| Divestitures, net of cash divested and asset sales |
|
| 15 |
|
|
| 21 |
|
|
| 22 |
|
|
| 24 |
|
| Net cash provided by (used for) investing activities |
|
| (1,270 | ) |
|
| (864 | ) |
|
| (2,311 | ) |
|
| (2,498 | ) |
| Financing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debt increase (decrease) - net |
|
| 1,320 |
|
|
| (1,359 | ) |
|
| 2,535 |
|
|
| (642 | ) |
| Issuances of ordinary shares |
|
| 5 |
|
|
| 8 |
|
|
| 21 |
|
|
| 21 |
|
| Purchases of ordinary shares |
|
| (1,440 | ) |
|
| (908 | ) |
|
| (2,481 | ) |
|
| (1,767 | ) |
| Cash dividends - Linde plc shareholders |
|
| (665 | ) |
|
| (623 | ) |
|
| (1,334 | ) |
|
| (1,246 | ) |
| Noncontrolling interest transactions and other |
|
| (28 | ) |
|
| (10 | ) |
|
| (217 | ) |
|
| (22 | ) |
| Net cash provided by (used for) financing activities |
|
| (808 | ) |
|
| (2,892 | ) |
|
| (1,476 | ) |
|
| (3,656 | ) |
| Effect of exchange rate changes on cash and cash equivalents |
|
| (73 | ) |
|
| 1 |
|
|
| (134 | ) |
|
| 17 |
|
| Change in cash and cash equivalents |
|
| (222 | ) |
|
| (1,605 | ) |
|
| (38 | ) |
|
| (2,079 | ) |
| Cash and cash equivalents, beginning-of-period |
|
| 4,848 |
|
|
| 4,962 |
|
|
| 4,664 |
|
|
| 5,436 |
|
| Cash and cash equivalents, end-of-period |
| $ | 4,626 |
|
| $ | 3,357 |
|
| $ | 4,626 |
|
| $ | 3,357 |
|
(a) There were no other charges for the quarter and six months ended June 30, 2024 and other charges of $22 million and $40 million for the respective 2023 periods. Related cash outflows were $20 million and $22 million for the quarters ended June 30, 2024 and 2023, respectively, and $75 million and $101 million for the six months ended June 30, 2024 and 2023, respectively.
| Page 7 of 10 |
LINDE PLC AND SUBSIDIARIES
SEGMENT INFORMATION
(UNAUDITED)
|
|
| Quarter Ended June 30, |
|
| Year to Date June 30, |
| ||||||||||
| (Millions of dollars) |
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
| Sales |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Americas |
| $ | 3,655 |
|
| $ | 3,541 |
|
| $ | 7,215 |
|
| $ | 7,092 |
|
| EMEA |
|
| 2,091 |
|
|
| 2,160 |
|
|
| 4,182 |
|
|
| 4,337 |
|
| APAC |
|
| 1,657 |
|
|
| 1,683 |
|
|
| 3,248 |
|
|
| 3,281 |
|
| Engineering |
|
| 544 |
|
|
| 495 |
|
|
| 1,083 |
|
|
| 1,035 |
|
| Other |
|
| 320 |
|
|
| 325 |
|
|
| 639 |
|
|
| 652 |
|
| Total segment sales |
| $ | 8,267 |
|
| $ | 8,204 |
|
| $ | 16,367 |
|
| $ | 16,397 |
|
| Operating Profit |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Americas |
| $ | 1,159 |
|
| $ | 1,070 |
|
| $ | 2,247 |
|
| $ | 2,095 |
|
| EMEA |
|
| 704 |
|
|
| 630 |
|
|
| 1,391 |
|
|
| 1,237 |
|
| APAC |
|
| 474 |
|
|
| 472 |
|
|
| 921 |
|
|
| 895 |
|
| Engineering |
|
| 96 |
|
|
| 107 |
|
|
| 196 |
|
|
| 256 |
|
| Other |
|
| (11 | ) |
|
| 7 |
|
|
| 8 |
|
|
| 9 |
|
| Segment operating profit |
|
| 2,422 |
|
|
| 2,286 |
|
|
| 4,763 |
|
|
| 4,492 |
|
| Other charges |
|
| — |
|
|
| (22 | ) |
|
| — |
|
|
| (40 | ) |
| Purchase accounting impacts - Linde AG |
|
| (238 | ) |
|
| (253 | ) |
|
| (484 | ) |
|
| (508 | ) |
| Total operating profit |
| $ | 2,184 |
|
| $ | 2,011 |
|
| $ | 4,279 |
|
| $ | 3,944 |
|
| Page 8 of 10 |
LINDE PLC AND SUBSIDIARIES
APPENDIX
NON-GAAP MEASURES AND RECONCILIATIONS
(UNAUDITED)
The following Non-GAAP measures are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and management use to help evaluate the company’s operating performance and liquidity. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures.
| 2024 |
|
| 2023 |
| ||||||||||||||||||||||||||||
| (Millions of dollars) |
| Year to Date June 30, |
|
| Q2 |
|
| Q1 |
|
| Year to Date June 30, |
|
| Q4 |
|
| Q3 |
|
| Q2 |
|
| Q1 |
| ||||||||
| Adjusted Operating Profit and Operating Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Reported operating profit |
| $ | 4,279 |
|
| $ | 2,184 |
|
| $ | 2,095 |
|
| $ | 3,944 |
|
| $ | 2,028 |
|
| $ | 2,052 |
|
| $ | 2,011 |
|
| $ | 1,933 |
|
| Add: Other charges (a) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 40 |
|
|
| (2 | ) |
|
| 2 |
|
|
| 22 |
|
|
| 18 |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 484 |
|
|
| 238 |
|
|
| 246 |
|
|
| 508 |
|
|
| 246 |
|
|
| 252 |
|
|
| 253 |
|
|
| 255 |
|
| Total adjustments |
|
| 484 |
|
|
| 238 |
|
|
| 246 |
|
|
| 548 |
|
|
| 244 |
|
|
| 254 |
|
|
| 275 |
|
|
| 273 |
|
| Adjusted operating profit |
| $ | 4,763 |
|
| $ | 2,422 |
|
| $ | 2,341 |
|
| $ | 4,492 |
|
| $ | 2,272 |
|
| $ | 2,306 |
|
| $ | 2,286 |
|
| $ | 2,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported percentage change |
|
| 8 | % |
|
| 9 | % |
|
| 8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted percentage change |
|
| 6 | % |
|
| 6 | % |
|
| 6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported sales |
| $ | 16,367 |
|
| $ | 8,267 |
|
| $ | 8,100 |
|
| $ | 16,397 |
|
| $ | 8,302 |
|
| $ | 8,155 |
|
| $ | 8,204 |
|
| $ | 8,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported operating margin |
|
| 26.1 | % |
|
| 26.4 | % |
|
| 25.9 | % |
|
| 24.1 | % |
|
| 24.4 | % |
|
| 25.2 | % |
|
| 24.5 | % |
|
| 23.6 | % |
| Adjusted operating margin |
|
| 29.1 | % |
|
| 29.3 | % |
|
| 28.9 | % |
|
| 27.4 | % |
|
| 27.4 | % |
|
| 28.3 | % |
|
| 27.9 | % |
|
| 26.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported depreciation and amortization |
| $ | 1,907 |
|
| $ | 958 |
|
| $ | 949 |
|
| $ | 1,908 |
|
| $ | 949 |
|
| $ | 959 |
|
| $ | 960 |
|
| $ | 948 |
|
| Less: Purchase accounting impacts - Linde AG (c) |
|
| (477 | ) |
|
| (237 | ) |
|
| (240 | ) |
|
| (501 | ) |
|
| (241 | ) |
|
| (249 | ) |
|
| (251 | ) |
|
| (250 | ) |
| Adjusted depreciation and amortization |
| $ | 1,430 |
|
| $ | 721 |
|
| $ | 709 |
|
| $ | 1,407 |
|
| $ | 708 |
|
| $ | 710 |
|
| $ | 709 |
|
| $ | 698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Other Income (Expense) - net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported Other Income (Expense) - net |
| $ | 60 |
|
| $ | 2 |
|
| $ | 58 |
|
| $ | (32 | ) |
| $ | (25 | ) |
| $ | 16 |
|
| $ | (27 | ) |
| $ | (5 | ) |
| Add: Purchase accounting impacts - Linde AG (c) |
|
| (7 | ) |
|
| (1 | ) |
|
| (6 | ) |
|
| (7 | ) |
|
| (5 | ) |
|
| (3 | ) |
|
| (2 | ) |
|
| (5 | ) |
| Adjusted Other Income (Expense) - net |
| $ | 67 |
|
| $ | 3 |
|
| $ | 64 |
|
| $ | (25 | ) |
| $ | (20 | ) |
| $ | 19 |
|
| $ | (25 | ) |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported net pension and OPEB cost (benefit), excluding service cost |
| $ | (99 | ) |
| $ | (49 | ) |
| $ | (50 | ) |
| $ | (90 | ) |
| $ | (39 | ) |
| $ | (35 | ) |
| $ | (45 | ) |
| $ | (45 | ) |
| Add: Pension settlement charges |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (4 | ) |
|
| (12 | ) |
|
| — |
|
|
| — |
|
| Adjusted Net Pension and OPEB cost (benefit), excluding service costs |
| $ | (99 | ) |
| $ | (49 | ) |
| $ | (50 | ) |
| $ | (90 | ) |
| $ | (43 | ) |
| $ | (47 | ) |
| $ | (45 | ) |
| $ | (45 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Interest Expense - Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported interest expense - net |
| $ | 135 |
|
| $ | 70 |
|
| $ | 65 |
|
| $ | 89 |
|
| $ | 71 |
|
| $ | 40 |
|
| $ | 52 |
|
| $ | 37 |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 3 |
|
|
| 1 |
|
|
| 2 |
|
|
| 13 |
|
|
| 1 |
|
|
| 2 |
|
|
| 4 |
|
|
| 9 |
|
| Adjusted interest expense - net |
| $ | 138 |
|
| $ | 71 |
|
| $ | 67 |
|
| $ | 102 |
|
| $ | 72 |
|
| $ | 42 |
|
| $ | 56 |
|
| $ | 46 |
|
| Page 9 of 10 |
| 2024 |
|
| 2023 |
| ||||||||||||||||||||||||||||
| (Millions of dollars) |
| Year to Date June 30, |
|
| Q2 |
|
| Q1 |
|
| Year to Date June 30, |
|
| Q4 |
|
| Q3 |
|
| Q2 |
|
| Q1 |
| ||||||||
| Adjusted Income Taxes (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Reported income taxes |
| $ | 971 |
|
| $ | 508 |
|
| $ | 463 |
|
| $ | 868 |
|
| $ | 459 |
|
| $ | 487 |
|
| $ | 438 |
|
| $ | 430 |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 116 |
|
|
| 56 |
|
|
| 60 |
|
|
| 124 |
|
|
| 49 |
|
|
| 59 |
|
|
| 67 |
|
|
| 57 |
|
| Add: Pension settlement charges |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1 |
|
|
| 2 |
|
|
| — |
|
|
| — |
|
| Add: Other charges (a) |
|
| 5 |
|
|
| — |
|
|
| 5 |
|
|
| 79 |
|
|
| 2 |
|
|
| — |
|
|
| 34 |
|
|
| 45 |
|
| Total adjustments |
|
| 121 |
|
|
| 56 |
|
|
| 65 |
|
|
| 203 |
|
|
| 52 |
|
|
| 61 |
|
|
| 101 |
|
|
| 102 |
|
| Adjusted income taxes |
| $ | 1,092 |
|
| $ | 564 |
|
| $ | 528 |
|
| $ | 1,071 |
|
| $ | 511 |
|
| $ | 548 |
|
| $ | 539 |
|
| $ | 532 |
|
| Adjusted Effective Tax Rate (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported income before income taxes and equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| investments |
| $ | 4,243 |
|
| $ | 2,163 |
|
| $ | 2,080 |
|
| $ | 3,945 |
|
| $ | 1,996 |
|
| $ | 2,047 |
|
| $ | 2,004 |
|
| $ | 1,941 |
|
| Add: Pension settlement charge |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 4 |
|
|
| 12 |
|
|
| — |
|
|
| — |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 481 |
|
|
| 237 |
|
|
| 244 |
|
|
| 495 |
|
|
| 245 |
|
|
| 250 |
|
|
| 249 |
|
|
| 246 |
|
| Add: Other charges (a) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 40 |
|
|
| (2 | ) |
|
| 2 |
|
|
| 22 |
|
|
| 18 |
|
| Total adjustments |
|
| 481 |
|
|
| 237 |
|
|
| 244 |
|
|
| 535 |
|
|
| 247 |
|
|
| 264 |
|
|
| 271 |
|
|
| 264 |
|
| Adjusted income before income taxes and equity investments |
| $ | 4,724 |
|
| $ | 2,400 |
|
| $ | 2,324 |
|
| $ | 4,480 |
|
| $ | 2,243 |
|
| $ | 2,311 |
|
| $ | 2,275 |
|
| $ | 2,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported Income taxes |
| $ | 971 |
|
| $ | 508 |
|
| $ | 463 |
|
| $ | 868 |
|
| $ | 459 |
|
| $ | 487 |
|
| $ | 438 |
|
| $ | 430 |
|
| Reported effective tax rate |
|
| 22.9 | % |
|
| 23.5 | % |
|
| 22.3 | % |
|
| 22.0 | % |
|
| 23.0 | % |
|
| 23.8 | % |
|
| 21.9 | % |
|
| 22.2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted income taxes |
| $ | 1,092 |
|
| $ | 564 |
|
| $ | 528 |
|
| $ | 1,071 |
|
| $ | 511 |
|
| $ | 548 |
|
| $ | 539 |
|
| $ | 532 |
|
| Adjusted effective tax rate |
|
| 23.1 | % |
|
| 23.5 | % |
|
| 22.7 | % |
|
| 23.9 | % |
|
| 22.8 | % |
|
| 23.7 | % |
|
| 23.7 | % |
|
| 24.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from Equity Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported income from equity investments |
| $ | 93 |
|
| $ | 45 |
|
| $ | 48 |
|
| $ | 87 |
|
| $ | 39 |
|
| $ | 41 |
|
| $ | 46 |
|
| $ | 41 |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 36 |
|
|
| 18 |
|
|
| 18 |
|
|
| 36 |
|
|
| 18 |
|
|
| 18 |
|
|
| 18 |
|
|
| 18 |
|
| Adjusted income from equity investments |
| $ | 129 |
|
| $ | 63 |
|
| $ | 66 |
|
| $ | 123 |
|
| $ | 57 |
|
| $ | 59 |
|
| $ | 64 |
|
| $ | 59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Noncontrolling Interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported noncontrolling interests |
| $ | (75 | ) |
| $ | (37 | ) |
| $ | (38 | ) |
| $ | (73 | ) |
| $ | (33 | ) |
| $ | (36 | ) |
| $ | (37 | ) |
| $ | (36 | ) |
| Add: Purchase accounting impacts - Linde AG (c) |
|
| (6 | ) |
|
| (3 | ) |
|
| (3 | ) |
|
| (6 | ) |
|
| (3 | ) |
|
| (3 | ) |
|
| (3 | ) |
|
| (3 | ) |
| Adjusted noncontrolling interests |
| $ | (81 | ) |
| $ | (40 | ) |
| $ | (41 | ) |
| $ | (79 | ) |
| $ | (36 | ) |
| $ | (39 | ) |
| $ | (40 | ) |
| $ | (39 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income - Linde plc (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported net income |
| $ | 3,290 |
|
| $ | 1,663 |
|
| $ | 1,627 |
|
| $ | 3,091 |
|
| $ | 1,543 |
|
| $ | 1,565 |
|
| $ | 1,575 |
|
| $ | 1,516 |
|
| Add: Pension settlement charge |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 3 |
|
|
| 10 |
|
|
| — |
|
|
| — |
|
| Add: Other charges (a) |
|
| (5 | ) |
|
| — |
|
|
| (5 | ) |
|
| (39 | ) |
|
| (4 | ) |
|
| 2 |
|
|
| (12 | ) |
|
| (27 | ) |
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 395 |
|
|
| 196 |
|
|
| 199 |
|
|
| 401 |
|
|
| 211 |
|
|
| 206 |
|
|
| 197 |
|
|
| 204 |
|
| Total adjustments |
|
| 390 |
|
|
| 196 |
|
|
| 194 |
|
|
| 362 |
|
|
| 210 |
|
|
| 218 |
|
|
| 185 |
|
|
| 177 |
|
| Adjusted net income - Linde plc |
| $ | 3,680 |
|
| $ | 1,859 |
|
| $ | 1,821 |
|
| $ | 3,453 |
|
| $ | 1,753 |
|
| $ | 1,783 |
|
| $ | 1,760 |
|
| $ | 1,693 |
|
| Page 9 of 10 cont'd |
|
|
| 2024 |
|
| 2023 |
| ||||||||||||||||||||||||||
| (Millions of dollars, except per share data) |
| Year to Date June 30, |
|
| Q2 |
|
| Q1 |
|
| Year to Date June 30, |
|
| Q4 |
|
| Q3 |
|
| Q2 |
|
| Q1 |
| ||||||||
| Adjusted Diluted EPS (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Reported diluted EPS |
| $ | 6.79 |
|
| $ | 3.44 |
|
| $ | 3.35 |
|
| $ | 6.25 |
|
| $ | 3.16 |
|
| $ | 3.19 |
|
| $ | 3.19 |
|
| $ | 3.06 |
|
| Add: Pension settlement charge |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 0.01 |
|
|
| 0.02 |
|
|
| — |
|
|
| — |
|
| Add: Other charges (a) |
|
| (0.01 | ) |
|
| — |
|
|
| (0.01 | ) |
|
| (0.08 | ) |
|
| (0.01 | ) |
|
| — |
|
|
| (0.02 | ) |
|
| (0.05 | ) |
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 0.82 |
|
|
| 0.41 |
|
|
| 0.41 |
|
|
| 0.81 |
|
|
| 0.43 |
|
|
| 0.42 |
|
|
| 0.40 |
|
|
| 0.41 |
|
| Total adjustments |
|
| 0.81 |
|
|
| 0.41 |
|
|
| 0.40 |
|
|
| 0.73 |
|
|
| 0.43 |
|
|
| 0.44 |
|
|
| 0.38 |
|
|
| 0.36 |
|
| Adjusted diluted EPS |
| $ | 7.60 |
|
| $ | 3.85 |
|
| $ | 3.75 |
|
| $ | 6.98 |
|
| $ | 3.59 |
|
| $ | 3.63 |
|
| $ | 3.57 |
|
| $ | 3.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported percentage change |
|
| 9 | % |
|
| 8 | % |
|
| 9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted percentage change |
|
| 9 | % |
|
| 8 | % |
|
| 10 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Third Quarter 2024 | Full Year 2024 |
| ||||||||||||
| Adjusted Diluted EPS Guidance (d) |
| Low End High End | Low End High End |
| ||||||||||||
| 2024 Adjusted Guidance |
| $ | 3.82 |
|
| $ | 3.92 |
|
| $ | 15.40 |
|
| $ | 15.60 |
|
| Adjusted percentage changes versus 2023 adjusted diluted EPS |
|
| 5 | % |
|
| 8 | % |
|
| 8 | % |
|
| 10 | % |
| Add: Estimated currency headwind/(tailwind) |
|
| 1 | % |
|
| 1 | % |
|
| 1 | % |
|
| 1 | % |
| Adjusted percentage change excluding currency |
|
| 6 | % |
|
| 9 | % |
|
| 9 | % |
|
| 11 | % |
| Adjusted EBITDA and % of Sales |
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||
| Net Income - Linde plc |
| $ | 3,290 |
|
| $ | 1,663 |
|
| $ | 1,627 |
|
| $ | 3,091 |
|
| $ | 1,543 |
|
| $ | 1,565 |
|
| $ | 1,575 |
|
| $ | 1,516 |
|
| Add: Noncontrolling interests |
|
| 75 |
|
|
| 37 |
|
|
| 38 |
|
|
| 73 |
|
|
| 33 |
|
|
| 36 |
|
|
| 37 |
|
|
| 36 |
|
| Add: Net pension and OPEB cost (benefit), excluding service cost |
|
| (99 | ) |
|
| (49 | ) |
|
| (50 | ) |
|
| (90 | ) |
|
| (39 | ) |
|
| (35 | ) |
|
| (45 | ) |
|
| (45 | ) |
| Add: Interest expense |
|
| 135 |
|
|
| 70 |
|
|
| 65 |
|
|
| 89 |
|
|
| 71 |
|
|
| 40 |
|
|
| 52 |
|
|
| 37 |
|
| Add: Income taxes |
|
| 971 |
|
|
| 508 |
|
|
| 463 |
|
|
| 868 |
|
|
| 459 |
|
|
| 487 |
|
|
| 438 |
|
|
| 430 |
|
| Add: Depreciation and amortization |
|
| 1,907 |
|
|
| 958 |
|
|
| 949 |
|
|
| 1,908 |
|
|
| 949 |
|
|
| 959 |
|
|
| 960 |
|
|
| 948 |
|
| EBITDA |
|
| 6,279 |
|
|
| 3,187 |
|
|
| 3,092 |
|
|
| 5,939 |
|
|
| 3,016 |
|
|
| 3,052 |
|
|
| 3,017 |
|
|
| 2,922 |
|
| Add: Other charges (a) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 40 |
|
|
| (2 | ) |
|
| 2 |
|
|
| 22 |
|
|
| 18 |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 43 |
|
|
| 19 |
|
|
| 24 |
|
|
| 43 |
|
|
| 23 |
|
|
| 20 |
|
|
| 20 |
|
|
| 23 |
|
| Total adjustments |
|
| 43 |
|
|
| 19 |
|
|
| 24 |
|
|
| 83 |
|
|
| 21 |
|
|
| 22 |
|
|
| 42 |
|
|
| 41 |
|
| Adjusted EBITDA |
| $ | 6,322 |
|
| $ | 3,206 |
|
| $ | 3,116 |
|
| $ | 6,022 |
|
| $ | 3,037 |
|
| $ | 3,074 |
|
| $ | 3,059 |
|
| $ | 2,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported sales |
| $ | 16,367 |
|
| $ | 8,267 |
|
| $ | 8,100 |
|
| $ | 16,397 |
|
| $ | 8,302 |
|
| $ | 8,155 |
|
| $ | 8,204 |
|
| $ | 8,193 |
|
| % of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
| 38.4 | % |
|
| 38.6 | % |
|
| 38.2 | % |
|
| 36.2 | % |
|
| 36.3 | % |
|
| 37.4 | % |
|
| 36.8 | % |
|
| 35.7 | % |
| Adjusted EBITDA as a % of Sales |
|
| 38.6 | % |
|
| 38.8 | % |
|
| 38.5 | % |
|
| 36.7 | % |
|
| 36.6 | % |
|
| 37.7 | % |
|
| 37.3 | % |
|
| 36.2 | % |
(a) The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.
(b) Net of income taxes which are shown separately in “Adjusted Income Taxes and Effective Tax Rate”.
(c) The company believes that its non-GAAP measures excluding Purchase accounting impacts - Linde AG are useful to investors because: (i) the 2018 business combination was a merger of equals in an all-stock merger transaction, with no cash consideration, (ii)
| Page 9 of 10 cont'd |
the company is managed on a geographic basis and the results of certain geographies are more heavily impacted by purchase accounting than others, causing results that are not comparable at the reportable segment level, therefore, the impacts of purchasing accounting adjustments to each segment vary and are not comparable within the company and when compared to other companies in similar regions, (iii) business management is evaluated and variable compensation is determined based on results excluding purchase accounting impacts, and; (iv) it is important to investors and analysts to understand the purchase accounting impacts to the financial statements.
A summary of each of the adjustments made for Purchase accounting impacts - Linde AG are as follows:
Adjusted Operating Profit and Margin: The purchase accounting adjustments for the periods presented relate primarily to depreciation and amortization related to the fair value step up of fixed assets and intangible assets (primarily customer related) acquired in the merger and the allocation of fair value step-up for ongoing Linde AG asset disposals (reflected in Other Income/ (Expense)).
Adjusted Interest Expense - Net: Relates to the amortization of the fair value of debt acquired in the merger.
Adjusted Income Taxes and Effective Tax Rate: Relates to the current and deferred income tax impact on the adjustments discussed above. The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.
Adjusted Income from Equity Investments: Represents the amortization of increased fair value on equity investments related to depreciable and amortizable assets.
Adjusted Noncontrolling Interests: Represents the noncontrolling interests’ ownership portion of the adjustments described above determined on an entity by entity basis.
(d) We are providing adjusted earnings per share (“EPS”) guidance for 2024. This is a non-GAAP financial measure that represents diluted earnings per share (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges and the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.
| Page 9 of 10 cont'd |
LINDE PLC AND SUBSIDIARIES
APPENDIX
NON-GAAP MEASURES AND RECONCILIATIONS
(UNAUDITED)
|
|
| 2024 |
|
| 2023 | ||||||||||||||
| (Millions of dollars) |
| Q2 |
|
| Q1 |
|
| Q4 |
|
| Q3 |
| Q2 |
| Q1 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evaluate the ability of a company to pursue opportunities that enhance shareholder value. FCF equals cash flow from operations less capital expenditures.
| Operating Cash Flow |
| $ | 1,929 |
|
| $ | 1,954 |
|
| $ | 2,727 |
|
| $ | 2,520 |
|
| $ | 2,150 |
|
| $ | 1,908 |
|
| Less: Capital Expenditures |
|
| (1,133 | ) |
|
| (1,048 | ) |
|
| (1,151 | ) |
|
| (948 | ) |
|
| (859 | ) |
|
| (829 | ) |
| Free Cash Flow |
| $ | 796 |
|
| $ | 906 |
|
| $ | 1,576 |
|
| $ | 1,572 |
|
| $ | 1,291 |
|
| $ | 1,079 |
|
Net Debt - Net debt is a financial liquidity metric used by investors, financial analysts and management to evaluate the ability of a company to repay its debt and is calculated as total debt (excluding purchase accounting impacts) less liquid assets.
| Debt |
| $ | 21,518 |
|
| $ | 20,319 |
|
| $ | 19,373 |
|
| $ | 18,003 |
|
| $ | 17,490 |
|
| $ | 18,777 |
|
| Less: Cash and cash equivalents |
|
| (4,626 | ) |
|
| (4,848 | ) |
|
| (4,664 | ) |
|
| (3,894 | ) |
|
| (3,357 | ) |
|
| (4,962 | ) |
| Net debt |
|
| 16,892 |
|
|
| 15,471 |
|
|
| 14,709 |
|
|
| 14,109 |
|
|
| 14,133 |
|
|
| 13,815 |
|
| Less: Purchase accounting impacts - Linde AG |
|
| (4 | ) |
|
| (5 | ) |
|
| (7 | ) |
|
| (8 | ) |
|
| (10 | ) |
|
| (13 | ) |
| Adjusted net debt |
| $ | 16,888 |
|
| $ | 15,466 |
|
| $ | 14,702 |
|
| $ | 14,101 |
|
| $ | 14,123 |
|
| $ | 13,802 |
|
After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC) - After-tax return on capital is a measure used by investors, financial analysts and management to evaluate the return on net assets employed in the business. ROC measures the after- tax operating profit that the company was able to generate with the investments made by all parties in the business (debt, noncontrolling interests and Linde plc Shareholders’ Equity).
| Reported net income - Linde plc |
| $ | 1,663 |
|
| $ | 1,627 |
|
| $ | 1,543 |
|
| $ | 1,565 |
|
| $ | 1,575 |
|
| $ | 1,516 |
|
| Add: noncontrolling interests |
|
| 37 |
|
|
| 38 |
|
|
| 33 |
|
|
| 36 |
|
|
| 37 |
|
|
| 36 |
|
| Add: interest expense - net |
|
| 70 |
|
|
| 65 |
|
|
| 71 |
|
|
| 40 |
|
|
| 52 |
|
|
| 37 |
|
| Less: tax benefit on interest expense - net * |
|
| (17 | ) |
|
| (16 | ) |
|
| (16 | ) |
|
| (12 | ) |
|
| (12 | ) |
|
| (9 | ) |
| Reported NOPAT |
| $ | 1,753 |
|
| $ | 1,714 |
|
| $ | 1,631 |
|
| $ | 1,629 |
|
| $ | 1,652 |
|
| $ | 1,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income - Linde plc |
| $ | 1,859 |
|
| $ | 1,821 |
|
| $ | 1,753 |
|
| $ | 1,783 |
|
| $ | 1,760 |
|
| $ | 1,693 |
|
| Add: adjusted noncontrolling interests |
|
| 40 |
|
|
| 41 |
|
|
| 36 |
|
|
| 39 |
|
|
| 40 |
|
|
| 39 |
|
| Add: adjusted interest expense - net |
|
| 71 |
|
|
| 67 |
|
|
| 72 |
|
|
| 42 |
|
|
| 56 |
|
|
| 46 |
|
| Less: tax benefit on interest expense - net * |
|
| (17 | ) |
|
| (17 | ) |
|
| (17 | ) |
|
| (13 | ) |
|
| (13 | ) |
|
| (11 | ) |
| Adjusted NOPAT |
| $ | 1,953 |
|
| $ | 1,912 |
|
| $ | 1,844 |
|
| $ | 1,851 |
|
| $ | 1,843 |
|
| $ | 1,767 |
|
*Tax benefit on interest expense - net is generally presented using the reported effective rate.
| 4-quarter trailing reported NOPAT |
| $ | 6,727 |
|
| $ | 6,626 |
|
| $ | 6,492 |
|
| $ | 6,246 |
|
| $ | 5,930 |
|
| $ | 4,692 |
|
| 4-quarter trailing adjusted NOPAT |
| $ | 7,560 |
|
| $ | 7,450 |
|
| $ | 7,305 |
|
| $ | 7,101 |
|
| $ | 6,863 |
|
| $ | 6,638 |
|
| Page 10 of 10 |
|
|
| 2024 |
|
| 2023 |
| ||||||||||||||||||
| (Millions of dollars) |
| Q2 |
|
| Q1 |
|
| Q4 |
|
| Q3 |
|
| Q2 |
|
| Q1 |
| ||||||
| Equity and redeemable noncontrolling interests: |
| |||||||||||||||||||||||
| Redeemable noncontrolling interests |
| $ | 13 |
|
| $ | 13 |
|
| $ | 13 |
|
| $ | 13 |
|
| $ | 13 |
|
| $ | 13 |
|
| Linde plc shareholders' equity |
|
| 38,179 |
|
|
| 38,829 |
|
|
| 39,720 |
|
|
| 38,898 |
|
|
| 39,911 |
|
|
| 39,970 |
|
| Noncontrolling interests |
|
| 1,359 |
|
|
| 1,387 |
|
|
| 1,362 |
|
|
| 1,327 |
|
|
| 1,324 |
|
|
| 1,353 |
|
| Total equity and redeemable noncontrolling interests |
| $ | 39,551 |
|
| $ | 40,229 |
|
| $ | 41,095 |
|
| $ | 40,238 |
|
| $ | 41,248 |
|
| $ | 41,336 |
|
| Reported capital |
| $ | 56,443 |
|
| $ | 55,700 |
|
| $ | 55,804 |
|
| $ | 54,347 |
|
| $ | 55,381 |
|
| $ | 55,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity and redeemable noncontrolling interests |
| $ | 39,551 |
|
| $ | 40,229 |
|
| $ | 41,095 |
|
| $ | 40,238 |
|
| $ | 41,248 |
|
| $ | 41,336 |
|
| Add: Adjusted net debt |
|
| 16,888 |
|
|
| 15,466 |
|
|
| 14,702 |
|
|
| 14,101 |
|
|
| 14,123 |
|
|
| 13,802 |
|
| Less: Linde AG Goodwill (a) |
|
| 24,256 |
|
|
| 24,256 |
|
|
| 24,256 |
|
|
| 24,256 |
|
|
| 24,256 |
|
|
| 24,256 |
|
| Less: Linde AG Indefinite lived intangibles (a) |
|
| 1,868 |
|
|
| 1,868 |
|
|
| 1,868 |
|
|
| 1,868 |
|
|
| 1,868 |
|
|
| 1,868 |
|
| Adjusted capital |
| $ | 30,315 |
|
| $ | 29,571 |
|
| $ | 29,673 |
|
| $ | 28,215 |
|
| $ | 29,247 |
|
| $ | 29,014 |
|
| (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending capital (see above) |
| $ | 56,443 |
|
| $ | 55,700 |
|
| $ | 55,804 |
|
| $ | 54,347 |
|
| $ | 55,381 |
|
| $ | 55,151 |
|
| 5-quarter average ending capital |
| $ | 55,535 |
|
| $ | 55,277 |
|
| $ | 54,910 |
|
| $ | 53,853 |
|
| $ | 53,669 |
|
| $ | 53,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending adjusted capital (see above) |
| $ | 30,315 |
|
| $ | 29,571 |
|
| $ | 29,673 |
|
| $ | 28,215 |
|
| $ | 29,247 |
|
| $ | 29,014 |
|
| 5-quarter average ending adjusted capital |
| $ | 29,404 |
|
| $ | 29,144 |
|
| $ | 28,774 |
|
| $ | 27,713 |
|
| $ | 27,523 |
|
| $ | 27,715 |
|
| After-tax ROC (4 quarter reported NOPAT / 5-quarter average ending capital) |
|
| 12.1 | % |
|
| 12.0 | % |
|
| 11.8 | % |
|
| 11.6 | % |
|
| 11.0 | % |
|
| 8.7 | % |
| Adjusted after-tax ROC (4 quarter trailing adjusted NOPAT / 5-quarter average ending adjusted capital) |
|
| 25.7 | % |
|
| 25.6 | % |
|
| 25.4 | % |
|
| 25.6 | % |
|
| 24.9 | % |
|
| 24.0 | % |
| Page 10 of 10 cont'd |