DGAP-News

Linde AG: January to September 2014: Linde generates a slight increase in revenue despite unfavourable exchange rate effects - Growth targets adjusted to reflect the weakening in the economic outlook - Seite 2

and sustainability. However, we have to take account of the fact that
economic growth has been much weaker than we all expected. In addition,
future prospects for global economic trends have recently dulled." Seen
from today's standpoint, Linde therefore assumes that it will not be able
to achieve the earnings target it originally set itself for 2016 until
2017. Depending on economic trends, Linde expects to achieve Group
operating profit of EUR 4.5 bn to EUR 4.7 bn and a reported ROCE of 11
percent to 12 percent in 2017, based on current exchange rates.

January to September 2014 - Group
In the first nine months of 2014, Linde achieved a slight increase of 0.9
percent in Group revenue to EUR 12.584 bn (2013: EUR 12.468 bn). Exchange
rate effects had a significant adverse impact on revenue, especially in the
first half of 2014. In the third quarter, the exchange rate effects became
less unfavourable to Linde. After adjusting for exchange rate effects
(which equated to revenue of EUR 462 m during the reporting period), the
increase in revenue for the Group in the first nine months of 2014 was 4.8
percent.

Group operating profit of EUR 2.898 bn was not as high as the figure
achieved by Linde in the first nine months of 2013 of EUR 2.996 bn. Adverse
exchange rate effects also need to be considered here. The effect of these
distortions was to reduce earnings by EUR 109 m. Without these distortions,
the Group would have achieved a 0.4 percent increase in Group operating
profit. The Group operating margin for the first nine months of 2014 was
23.0 percent (2013: 24.0 percent). When considering the fall in the margin,
it should be noted that the Engineering Division (as expected) contributed
more to Group revenue in the reporting period than was the case in the
first nine months of 2013. Linde's engineering business has a lower margin
than its gases operations.

The Group generated earnings before interest and taxes (EBIT) in the nine
months to 30 September 2014 of EUR 1.400 bn, which was below the figure for
the prior-year period of EUR 1.644 bn. This significant fall was the result
of non-recurring items. Non-recurring items comprised impairment losses of
EUR 229 m recognised in the Gases Division. After adjusting for
non-recurring items, EBIT in the reporting period was EUR 1.629 bn.

Earnings before tax (EBT) in the first nine months of 2014 amounted to EUR
1.138 bn (2013: EUR 1.356 bn). Profit for the period was EUR 863 m (2013:
EUR 1.078 bn). Profit for the period attributable to Linde AG shareholders
was EUR 818 m (2013: EUR 997 m). This gives earnings per share of EUR 4.41