Linde AG

Linde launches wide-ranging efficiency programme/ 9-month figures in line with expectations - Seite 2

earnings by the Engineering Division as well as to adverse exchange rate
movements. After adjusting for exchange rate effects arising solely on
translation, Group revenue was 1.1 percent below the figure for the prior-
year period. Group operating profit rose by 0.8 percent after adjusting for
exchange rate effects. At 23.6 percent, the Group operating margin was
higher than the figure of 23.1 percent in the first nine months of 2015.
Contributing to this improvement were the efficiency measures already
introduced back in 2015. In the course of the nine months to 30 September
2016, costs relating to efficiency measures rose to a total of EUR 50 m and
they have therefore been classified as a non-recurring item.

Once again during the reporting period there was a positive trend in cash
flow from operating activities. In the first nine months of 2016, it
increased by 4.7 percent to EUR 2.503 bn (2015: EUR 2.390 bn).

Gases Division: Slight increase in revenue on a comparable basis
Revenue in the Gases Division in the first nine months of 2016 was EUR
11.016 bn, which was 3.3 percent below the figure for the prior-year period
of EUR 11.387 bn. After adjusting for exchange rate effects, revenue
increased by 0.2 percent. On a comparable basis (after also adjusting for
changes in the price of natural gas), the growth in revenue was 0.8
percent. Operating profit was EUR 3.098 bn, which was below the figure for
the first nine months of 2015
of EUR 3.131 bn. After adjusting for exchange rate effects, operating
profit increased by 1.9
percent. The operating margin rose to 28.1 percent (2015: 27.5 percent),
due in part to lower prices for natural gas.

In the EMEA segment (Europe, Middle East, Africa), the Group generated
revenue of EUR 4.272 bn in the first nine months of 2016, which was 5.4
percent below the figure for the first nine months of 2015 of EUR 4.515 bn.
On a comparable basis, revenue was slightly below the figure for the prior-
year period. Operating profit was EUR 1.358 bn (2015: EUR 1.350 bn).
Operating profit includes income from changes to pension plans and profits
on the disposal of non-current assets. The operating margin rose to 31.8
percent (2015: 29.9 percent).

In the Asia/Pacific segment, Linde generated revenue in the nine months to
30 September 2016 of EUR 3.027 bn, which was 3.4 percent below the figure
for the first nine months of 2015 of EUR 3.133 bn. On a comparable basis,
revenue increased by 1.1 percent. Operating profit fell by 1.4 percent to
EUR 793 m (2015: EUR 804 m), while the operating margin rose to 26.2