Exhibit
99.1
Press release
Linde Reports Full-Year and Fourth-Quarter 2020
Results
Full-Year Highlights
➢ Sales
$27.2 billion, down 3%
➢ Operating
profit $3.3 billion, adjusted operating profit $5.8 billion, up
10%
➢ Operating
profit margin 12.2%; adjusted operating profit margin 21.3%, up 260
basis points versus prior year
➢ EPS
$4.70; adjusted EPS $8.23, up 12%
➢ Strong
operating cash flow $7.4 billion, up 21%
➢ Returned
$4.4 billion to shareholders through dividends and share
repurchases
➢ Reduced
GHG emissions intensity by 16% versus 2018; target of 35% reduction
by 2028
Fourth-Quarter Highlights
➢ Sales
$7.3 billion, up 3% YoY
➢ Operating
profit $1.0 billion, adjusted operating profit $1.6 billion, up
20%
➢ Operating
profit margin 14.2%; adjusted operating profit margin 22.2%, up 320
basis points
➢ EPS
$1.45; adjusted EPS $2.30, up 22%
➢ Strong
operating cash flow $2.4 billion, up 12%
2021
➢ First-quarter
2021 adjusted EPS guidance $2.20 - $2.25, represents 16% - 19%
growth
➢ Full-year
2021 adjusted EPS guidance $9.10 - $9.30, represents 11% - 13%
growth
➢ Increased
annual dividend 10% and announced new $5 billion share repurchase
program
Guildford,
UK, February 5, 2021 – Linde plc (NYSE: LIN; FWB: LIN) today
reported fourth-quarter 2020 income from continuing operations of
$769 million and diluted
earnings per share of $1.45. Excluding Linde AG purchase accounting
impacts and other charges, adjusted income from continuing
operations was $1,217 million, up 19% versus prior year and 7%
sequentially. Adjusted earnings per share was $2.30, 22% above
prior year and 7% higher sequentially.
Linde’s
sales for the fourth quarter were $7,272 million, 3% above prior
year and 6% sequentially. Compared to prior year, underlying sales
increased 3% from 2% price attainment and 1% higher volumes,
largely due to project start-ups. Sequentially, underlying sales
increased 2%, mainly driven by higher volumes across all
segments.
Fourth-quarter
operating profit was $1,029 million. Adjusted operating profit of
$1,613 million was up 20% versus prior year led by higher price and
continued productivity initiatives across all segments. Adjusted
operating margin of 22.2% expanded 320 basis points versus prior
year and 10 basis points sequentially.
Fourth-quarter
operating cash flow of $2,434 million increased 12% versus prior
year and 29% sequentially.
After capital expenditures of $1,027 million, free cash flow was
$1,407 million, up 21% versus prior year. During the quarter, the
company returned $926 million to shareholders through dividends and
stock repurchases, net of issuance.
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Press release
For
full-year 2020, sales were $27.2 billion, 3% below 2019. Price
improved 2% as all geographic segments attained price increases.
Volume decreased 2% as growth from project start-ups was more than
offset by the global macroeconomic slowdown as a result of the
COVID-19 pandemic. Operating profit was $3.3 billion and adjusted
operating profit was $5.8 billion, 21.3% of sales, and increased
10% versus 2019. Diluted earnings per share were $4.70 and adjusted
diluted earnings per share were $8.23, up 12% versus prior
year.
In
2020, Linde generated strong operating cash flow of $7.4 billion,
up 21% versus prior year. The company invested $3.4 billion in
capital expenditures and paid dividends of $2.0 billion. In
addition, Linde repurchased $2.4 billion of stock, net of
issuances.
Commenting
on the financial results and business outlook, Chief Executive
Officer Steve Angel said, “I want to personally thank all our
dedicated Linde employees for ensuring a safe and reliable supply
of critical gases and services to our customers and patients
worldwide. The company responded exceptionally well in a
challenging year dominated by the COVID-19 pandemic and I
couldn’t be more proud of what we accomplished and continue
to do for our shareholders and society at large. Despite all the
headwinds we faced throughout the year, Linde grew EPS 12%,
operating cash flow 21%, and increased ROC to 13.4% – all
while improving our sustainability performance.”
Angel
continued, “Looking ahead, the near-term economic outlook
remains uncertain. However, I have confidence in our ability to
grow EPS double-digit percent irrespective of the macro environment
while also leveraging any economic recovery. In addition, I expect
to capture more than our fair share of quality growth opportunities
in secular markets like healthcare, electronics and clean
energy.”
For the
full year, the company expects adjusted diluted earnings per share
to be in the range of $9.10 to $9.30, up 11% to 13% versus prior
year and 10% to 12% when excluding estimated currency tailwinds.
Full-year capital expenditures are expected to range between $3.0
billion to $3.5 billion to support operating and growth
requirements including the $3.6 billion contractual sale of gas
project backlog.
Fourth-Quarter 2020 Results by Segment
Americas
sales of $2,724 million were flat versus prior-year quarter, but
increased 3% sequentially. Compared with fourth quarter 2019,
underlying sales increased 3% driven by 2% higher pricing and 1%
higher volume, primarily in the healthcare end market.
Sequentially, price was stable and volumes grew 2%, led by higher
demand in metals and manufacturing end markets. Operating profit of
$748 million was 27.5% of sales, up 280 basis points versus prior
year.
APAC
(Asia Pacific) sales of $1,572 million were 12% above prior year
and up 6% sequentially. Compared to prior year, underlying sales
grew 8% driven by 1% price attainment and 7% volume growth,
primarily in the electronics end market and project start-ups.
Sequentially, price was steady and volumes grew 3% led by higher
demand in the electronics and metals end markets. Operating profit
of $365 million was 23.2% of sales, up 190 basis points versus
prior year.
EMEA
(Europe, Middle East & Africa) sales of $1,746 million were up
6% versus prior year and grew 8% sequentially. Compared with fourth
quarter 2019, underlying sales grew 4%, primarily led by 3% higher
pricing. Sequentially, underlying sales grew 5% driven by 2% higher
pricing and 3% volume growth, mainly in the healthcare end market.
Operating profit of $437 million was 25.0% of sales, up 370 basis
points versus prior year.
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Press release
Linde
Engineering sales were $755 million, 2% below prior year, and
operating profit was $100 million or 13.2% of sales. Order intake
for the quarter was $355 million and third-party sale of equipment
backlog was $4.7 billion.
Earnings
Call
A
teleconference on Linde’s fourth-quarter 2020 results is
being held today at 10:00 am EST.
|
Live conference call
|
US
Toll-Free Dial-In Number: 1 855 758 5442
Germany
Toll-Free Dial-In Number: 0800 181 5287
UK
Toll-Free Dial-In Number: 0800 028 8438
Access
code: 7237505
|
|
Live webcast (listen-only)
|
https://investors.linde.com/events-presentations
Short
URL: https://t1p.de/i2ho
|
Materials
to be used in the teleconference are also available on the
website.
About
Linde
Linde
is a leading global industrial gases and engineering company with
2020 sales of $27 billion (€24 billion). We live our mission
of making our world more
productive every day by providing high-quality solutions,
technologies and services which are making our customers more
successful and helping to sustain and protect our
planet.
The
company serves a variety of end markets including chemicals &
refining, food & beverage, electronics, healthcare,
manufacturing and primary metals. Linde’s industrial gases
are used in countless applications, from life-saving oxygen for
hospitals to high-purity & specialty gases for electronics
manufacturing, hydrogen for clean fuels and much more. Linde also
delivers state-of-the-art gas processing solutions to support
customer expansion, efficiency improvements and emissions
reductions.
For
more information about the company and its products and services,
please visit www.linde.com
Adjusted
amounts, free cash flow and return on capital are non-GAAP
measures. See the attachments for a summary of non-GAAP
reconciliations and calculations for adjusted amounts.
Attachments:
Summary Non-GAAP Reconciliations, Statements of Income, Balance
Sheets, Statements of Cash Flows, Segment Information and Appendix:
Non-GAAP Measures and Reconciliations.
*Note:
We are providing adjusted earnings per share (“EPS”)
guidance for 2021. This is a non-GAAP financial measure that
represents diluted earnings per share from continuing operations (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, 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.
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Press release
Forward-looking
Statements
This document contains
“forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are identified by terms and phrases such
as: anticipate, believe, intend, estimate, expect, continue,
should, could, may, plan, project, predict, will, potential,
forecast, and similar expressions. They are based on
management’s reasonable expectations and assumptions as of
the date the statements are made but involve risks and
uncertainties. These risks and uncertainties include, without
limitation: the performance of stock markets generally;
developments in worldwide and national economies and other
international events and circumstances, including trade conflicts
and tariffs; changes in foreign currencies and in interest rates;
the cost and availability of electric power, natural gas and other
raw materials; the ability to achieve price increases to offset
cost increases; catastrophic events including natural disasters,
epidemics, pandemics such as
COVID-19 and acts of war and terrorism; the ability to attract,
hire, and retain qualified personnel; the impact of changes in
financial accounting standards; the impact of changes in pension
plan liabilities; the impact of tax, environmental, healthcare and
other legislation and government regulation in jurisdictions in
which the company operates; the cost and outcomes of
investigations, litigation and regulatory proceedings; the impact
of potential unusual or non-recurring items; continued timely
development and market acceptance of new products and applications;
the impact of competitive products and pricing; future financial
and operating performance of major customers and industries served;
the impact of information technology system failures, network
disruptions and breaches in data security; and the effectiveness
and speed of integrating new acquisitions into the business. These
risks and uncertainties may cause actual future results or
circumstances to differ materially from accounting principles
generally accepted in the United States of America, International
Financial Reporting Standards or adjusted projections, estimates or
other forward-looking statements.
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, 2019 filed with the SEC on March 2,
2020 and in Item 1A. of Linde plc's Form 10-Q for the period ending
March 31, 2020 filed with the SEC on May 7, 2020, which should be
reviewed carefully. Please consider Linde plc’s
forward-looking statements in light of those risks.
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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 10 for additional details
relating to the adjustments.
(Millions of dollars, except per share amounts)
|
|
Sales
|
Operating Profit
|
Income from Continuing Operations
|
Diluted EPS from Continuing Operations
|
||||
|
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|
Quarter Ended December 31
|
|
|
|
|
|
|
|
|
|
Reported GAAP
Amounts
|
$7,272
|
$7,080
|
$1,029
|
$655
|
$769
|
$507
|
$1.45
|
$0.94
|
|
Cost reduction
program and other charges (a)
|
-
|
-
|
78
|
212
|
54
|
159
|
0.10
|
0.29
|
|
Pension
settlement charges (b)
|
-
|
-
|
-
|
-
|
-
|
5
|
-
|
0.01
|
|
Merger-related
divestitures (c)
|
-
|
(3)
|
-
|
(1)
|
-
|
(1)
|
-
|
-
|
|
Purchase
accounting impacts - Linde AG (d)
|
-
|
-
|
506
|
481
|
382
|
354
|
0.73
|
0.65
|
|
Bond
Redemption (e)
|
-
|
-
|
-
|
-
|
12
|
-
|
0.02
|
-
|
|
Total
adjustments
|
-
|
(3)
|
584
|
692
|
448
|
517
|
0.85
|
0.95
|
|
Adjusted
amounts
|
$7,272
|
$7,077
|
$1,613
|
$1,347
|
$1,217
|
$1,024
|
$2.30
|
$1.89
|
|
|
Sales
|
Operating Profit
|
Income from Continuing Operations
|
Diluted EPS from Continuing Operations
|
||||
|
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|
Year to Date December 31
|
|
|
|
|
|
|
|
|
|
Reported GAAP
Amounts
|
$27,243
|
$28,228
|
$3,322
|
$2,933
|
$2,497
|
$2,183
|
$4.70
|
$4.00
|
|
Cost reduction
program and other charges (a)
|
-
|
-
|
506
|
567
|
372
|
449
|
0.70
|
0.83
|
|
Pension
settlement charges (b)
|
-
|
-
|
-
|
-
|
5
|
81
|
0.01
|
0.16
|
|
Merger-related
divestitures (c)
|
-
|
(65)
|
-
|
(16)
|
-
|
(12)
|
-
|
(0.03)
|
|
Purchase
accounting impacts - Linde AG (d)
|
-
|
-
|
1,969
|
1,952
|
1,485
|
1,410
|
2.80
|
2.59
|
|
Bond
Redemption (e)
|
-
|
-
|
-
|
-
|
12
|
-
|
0.02
|
-
|
|
Gain on sale
of businesses (f)
|
-
|
-
|
-
|
(164)
|
-
|
(108)
|
-
|
(0.21)
|
|
Total
adjustments
|
-
|
(65)
|
2,475
|
2,339
|
1,874
|
1,820
|
3.53
|
3.34
|
|
Adjusted
amounts
|
$27,243
|
$28,163
|
$5,797
|
$5,272
|
$4,371
|
$4,003
|
$8.23
|
$7.34
|
(a) To adjust for cost reduction program and other charges; 2020
includes severance of $19 million and $300 million for the quarter
and year-to-date periods, other cost reduction charges of $44
million and $93 million for the quarter and year-to-date periods,
and other charges of $15 million and $113 million for the quarter
and year-to-date periods.
(b) To adjust for pension settlement charges. 2019 charges
primarily related to the merger.
(c) To adjust for the results of Praxair's merger-related
divestitures.
(d) To adjust for purchase accounting impacts related to the
merger.
(e) To adjust for $16 million charge to interest expense in the
2020 fourth quarter related to a bond redemption.
(f) To adjust for gains recognized related to the sale of
businesses related to the merger.
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|
LINDE PLC AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENT OF INCOME
|
|
(Millions of dollars, except per share data)
|
|
(UNAUDITED)
|
|
|
Quarter Ended
|
Year To Date
|
||
|
|
December 31,
|
December 31,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
SALES
|
$7,272
|
$7,080
|
$27,243
|
$28,228
|
|
Cost of
sales
|
4,086
|
4,187
|
15,383
|
16,644
|
|
Selling,
general and administrative
|
802
|
844
|
3,193
|
3,457
|
|
Depreciation
and amortization
|
1,192
|
1,162
|
4,626
|
4,675
|
|
Research and
development
|
38
|
49
|
152
|
184
|
|
Cost reduction
programs and other charges
|
78
|
212
|
506
|
567
|
|
Net gain on
sale of business
|
-
|
-
|
-
|
164
|
|
Other income
(expense) - net
|
(47)
|
29
|
(61)
|
68
|
|
OPERATING PROFIT
|
1,029
|
655
|
3,322
|
2,933
|
|
Interest
expense - net
|
35
|
8
|
115
|
38
|
|
Net pension
and OPEB cost (benefit), excluding service cost
|
(46)
|
(25)
|
(177)
|
(32)
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY
INVESTMENTS
|
1,040
|
672
|
3,384
|
2,927
|
|
Income
taxes
|
253
|
162
|
847
|
769
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE EQUITY
INVESTMENTS
|
787
|
510
|
2,537
|
2,158
|
|
Income from
equity investments
|
16
|
24
|
85
|
114
|
|
INCOME FROM CONTINUING OPERATIONS (INCLUDING NONCONTROLLING
INTERESTS)
|
803
|
534
|
2,622
|
2,272
|
|
Add: income
from discontinued operations, net of tax
|
1
|
4
|
4
|
109
|
|
INCOME (INCLUDING NONCONTROLLING INTERESTS)
|
804
|
538
|
2,626
|
2,381
|
|
Less:
noncontrolling interests from continuing
operations
|
(34)
|
(27)
|
(125)
|
(89)
|
|
Less:
noncontrolling interests from discontinued
operations
|
-
|
-
|
-
|
(7)
|
|
NET INCOME - LINDE PLC
|
$770
|
$511
|
$2,501
|
$2,285
|
|
|
|
|
|
|
|
NET INCOME - LINDE PLC
|
|
|
|
|
|
Income from
continuing operations
|
$769
|
$507
|
$2,497
|
$2,183
|
|
Income from
discontinued operations
|
$1
|
$4
|
$4
|
$102
|
|
|
|
|
|
|
|
PER SHARE DATA - LINDE PLC SHAREHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share from continuing operations
|
$1.47
|
$0.94
|
$4.74
|
$4.03
|
|
Basic earnings
per share from discontinued operations
|
-
|
0.01
|
0.01
|
0.19
|
|
Basic earnings
per share
|
$1.47
|
$0.95
|
$4.75
|
$4.22
|
|
|
|
|
|
|
|
Diluted
earnings per share from continuing operations
|
$1.45
|
$0.94
|
$4.70
|
$4.00
|
|
Diluted
earnings per share from discontinued operations
|
-
|
0.01
|
0.01
|
0.19
|
|
Diluted
earnings per share
|
$1.45
|
$0.95
|
$4.71
|
$4.19
|
|
|
|
|
|
|
|
Cash
dividends
|
$0.963
|
$0.875
|
$3.85
|
$3.50
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
|
Basic shares
outstanding (000's)
|
524,442
|
536,768
|
526,736
|
541,094
|
|
Diluted shares
outstanding (000's)
|
529,038
|
540,919
|
531,157
|
545,170
|
Note: See page 10 for a reconciliation to adjusted amounts which
are Non-GAAP.
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6/12
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Press release
LINDE PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Millions of dollars)
(UNAUDITED)
|
|
December 31,
|
December 31,
|
|
|
2020
|
2019
|
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$3,754
|
$2,700
|
|
Accounts
receivable - net
|
4,167
|
4,322
|
|
Contract
assets
|
162
|
368
|
|
Inventories
|
1,729
|
1,697
|
|
Prepaid and
other current assets
|
1,112
|
1,265
|
|
TOTAL CURRENT ASSETS
|
10,924
|
10,352
|
|
Property,
plant and equipment - net
|
28,711
|
29,064
|
|
Goodwill
|
28,201
|
27,019
|
|
Other
intangibles - net
|
16,184
|
16,137
|
|
Other
long-term assets
|
4,209
|
4,040
|
|
TOTAL ASSETS
|
$88,229
|
$86,612
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
Accounts
payable
|
$3,095
|
$3,266
|
|
Short-term
debt
|
3,251
|
1,732
|
|
Current
portion of long-term debt
|
751
|
1,531
|
|
Contract
liabilities
|
1,769
|
1,758
|
|
Other current
liabilities
|
4,874
|
3,873
|
|
TOTAL CURRENT LIABILITIES
|
13,740
|
12,160
|
|
Long-term
debt
|
12,152
|
10,693
|
|
Other
long-term liabilities
|
12,755
|
12,124
|
|
TOTAL LIABILITIES
|
38,647
|
34,977
|
|
|
|
|
|
REDEEMABLE NONCONTROLLING INTERESTS
|
13
|
113
|
|
|
|
|
|
LINDE PLC SHAREHOLDERS' EQUITY:
|
|
|
|
Common
stock
|
1
|
1
|
|
Additional
paid-in capital
|
40,202
|
40,201
|
|
Retained
earnings
|
17,178
|
16,842
|
|
Accumulated
other comprehensive income (loss)
|
(4,690)
|
(4,814)
|
|
Less: Treasury
stock, at cost
|
(5,374)
|
(3,156)
|
|
Total Linde
plc shareholders' equity
|
47,317
|
49,074
|
|
Noncontrolling
interests
|
2,252
|
2,448
|
|
TOTAL EQUITY
|
49,569
|
51,522
|
|
TOTAL LIABILITIES AND EQUITY
|
$88,229
|
$86,612
|
|
Page
7/12
|
|
|
|
Press release
|
LINDE PLC AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
(Millions of dollars)
|
|
(UNAUDITED)
|
|
|
Quarter Ended
|
Year to Date
|
||
|
|
December 31,
|
December 31,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
OPERATIONS
|
|
|
|
|
|
Net income -
Linde plc
|
$770
|
$511
|
$2,501
|
$2,285
|
|
Less: income
from discontinued operations, net of tax and noncontrolling
interests
|
(1)
|
(4)
|
(4)
|
(102)
|
|
Add:
noncontrolling interests
|
34
|
27
|
125
|
89
|
|
Net income
(including noncontrolling interests)
|
803
|
534
|
2,622
|
2,272
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Cost reduction
programs and other charges, net of payments (a)
|
18
|
120
|
258
|
(236)
|
|
Amortization
of merger-related inventory step up
|
-
|
-
|
-
|
12
|
|
Net gain on
sale of business
|
-
|
-
|
-
|
(108)
|
|
Depreciation
and amortization
|
1,192
|
1,162
|
4,626
|
4,675
|
|
Accounts
receivable
|
95
|
110
|
19
|
80
|
|
Contract
assets and liabilities, net
|
1
|
122
|
90
|
87
|
|
Inventory
|
119
|
(20)
|
18
|
(81)
|
|
Payables and
accruals
|
121
|
237
|
109
|
(174)
|
|
Pension
contributions
|
(15)
|
(25)
|
(91)
|
(94)
|
|
Deferred
income taxes and other
|
100
|
(66)
|
(222)
|
(314)
|
|
Net cash
provided by operating activities
|
2,434
|
2,174
|
7,429
|
6,119
|
|
|
|
|
|
|
|
INVESTING
|
|
|
|
|
|
Capital
expenditures
|
(1,027)
|
(1,015)
|
(3,400)
|
(3,682)
|
|
Acquisitions,
net of cash acquired
|
(27)
|
(64)
|
(68)
|
(225)
|
|
Divestitures
and asset sales
|
47
|
136
|
482
|
5,096
|
|
Net cash
provided by (used for) investing activities
|
(1,007)
|
(943)
|
(2,986)
|
1,189
|
|
|
|
|
|
|
|
FINANCING
|
|
|
|
|
|
Debt increase
(decrease) - net
|
(2,022)
|
484
|
1,313
|
(1,260)
|
|
Issuances of
ordinary shares
|
6
|
12
|
47
|
72
|
|
Purchases of
ordinary shares
|
(427)
|
(724)
|
(2,457)
|
(2,658)
|
|
Cash dividends
- Linde plc shareholders
|
(505)
|
(469)
|
(2,028)
|
(1,891)
|
|
Noncontrolling
interest transactions and other (b)
|
(19)
|
(3)
|
(220)
|
(3,260)
|
|
Net cash
provided by (used for) financing activities
|
(2,967)
|
(700)
|
(3,345)
|
(8,997)
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS
|
|
|
|
|
|
Cash provided
by operating activities
|
-
|
2
|
-
|
69
|
|
Cash provided
by investing activities
|
-
|
(1)
|
-
|
(60)
|
|
Cash provided
by financing activities
|
-
|
-
|
-
|
5
|
|
Net cash
provided by (used for) discontinued operations
|
-
|
1
|
-
|
14
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash
equivalents
|
95
|
49
|
(44)
|
(77)
|
|
|
|
|
|
|
|
Change in cash
and cash equivalents
|
(1,445)
|
581
|
1,054
|
(1,752)
|
|
Cash and cash
equivalents, beginning-of-period
|
5,199
|
2,120
|
2,700
|
4,466
|
|
Cash and cash
equivalents, including discontinued operations
|
3,754
|
2,701
|
3,754
|
2,714
|
|
Cash and cash
equivalents of discontinued operations
|
-
|
(1)
|
-
|
(14)
|
|
Cash and cash
equivalents, end-of-period
|
$3,754
|
$2,700
|
$3,754
|
$2,700
|
(a) Cost reduction programs and other charges of $78 million and
$212 million for the quarters ended December 31, 2020 and 2019 were
partially offset by related cash outflows of $60 million and $92
million, respectively. Cost reduction programs and other charges of
$506 million and $567 million for the years ended December 31, 2020
and 2019 were offset by related cash outflows of $248 million and
$803 million, respectively.
(b) Noncontrolling interest transactions and other for the 2019
year to date period includes approximately $3.2 billion related to
the cash merger squeeze-out of the 8% Linde AG shares which were
not tendered in the exchange offer.
|
Page
8/12
|
|
|
|
Press release
LINDE PLC AND SUBSIDIARIES
SEGMENT INFORMATION
(Millions of dollars)
(UNAUDITED)
|
|
Quarter Ended December 31,
|
Year to Date December 31,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
SALES
|
|
|
|
|
|
Americas
|
$2,724
|
$2,737
|
$10,459
|
$10,989
|
|
EMEA
|
1,746
|
1,654
|
6,449
|
6,643
|
|
APAC
|
1,572
|
1,403
|
5,687
|
5,779
|
|
Engineering
|
755
|
770
|
2,851
|
2,799
|
|
Other
|
475
|
513
|
1,797
|
1,953
|
|
Segment
sales
|
$7,272
|
$7,077
|
$27,243
|
$28,163
|
|
Merger-related
divestitures (a)
|
-
|
3
|
-
|
65
|
|
Total
sales
|
$7,272
|
$7,080
|
$27,243
|
$28,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
|
|
|
|
|
Americas
|
$748
|
$676
|
$2,773
|
$2,577
|
|
EMEA
|
437
|
353
|
1,465
|
1,367
|
|
APAC
|
365
|
299
|
1,277
|
1,184
|
|
Engineering
|
100
|
93
|
435
|
390
|
|
Other
|
(37)
|
(74)
|
(153)
|
(246)
|
|
Segment
operating profit
|
$1,613
|
$1,347
|
$5,797
|
$5,272
|
|
Cost reduction
programs and other charges
|
(78)
|
(212)
|
(506)
|
(567)
|
|
Merger-related
divestitures (a)
|
-
|
1
|
-
|
16
|
|
Net gain on
sale of business (b)
|
-
|
-
|
-
|
164
|
|
Purchase
accounting impacts - Linde AG
|
(506)
|
(481)
|
(1,969)
|
(1,952)
|
|
Total
operating profit
|
$1,029
|
$655
|
$3,322
|
$2,933
|
(a) To adjust for the results of Praxair's merger-related
divestitures.
(b) To adjust for gains recognized related to the sale of
businesses related to the merger.
|
Page
9/12
|
|
|
|
Press release
LINDE PLC AND SUBSIDIARIES
APPENDIX
NON-GAAP MEASURES AND RECONCILIATIONS
(Millions of dollars, except per share data)
(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.
|
|
2020
|
2019
|
||||||||
|
|
Year to Date
December 31,
|
Q4
|
Q3
|
Q2
|
Q1
|
Year to Date
December 31,
|
Q4
|
Q3
|
Q2
|
Q1
|
|
Adjusted Sales
|
|
|
|
|
|
|
|
|
|
|
|
Reported
Sales
|
$27,243
|
$7,272
|
$6,855
|
$6,377
|
$6,739
|
$28,228
|
$7,080
|
$7,000
|
$7,204
|
$6,944
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
-
|
-
|
(65)
|
(3)
|
(7)
|
(25)
|
(30)
|
|
Adjusted
Sales
|
$27,243
|
$7,272
|
$6,855
|
$6,377
|
$6,739
|
$28,163
|
$7,077
|
$6,993
|
$7,179
|
$6,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Profit and Operating Margin
|
|
|
|
|
|
|
|
|
|
|
|
Reported
operating profit
|
$3,322
|
$1,029
|
$969
|
$591
|
$733
|
$2,933
|
$655
|
$1,000
|
$669
|
$609
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
-
|
-
|
(16)
|
(1)
|
(2)
|
(6)
|
(7)
|
|
Add: Cost
reduction programs and other charges
|
506
|
78
|
48
|
249
|
131
|
567
|
212
|
125
|
141
|
89
|
|
Less: Net gain
on sale of businesses
|
-
|
-
|
-
|
-
|
-
|
(164)
|
-
|
(164)
|
-
|
-
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
1,969
|
506
|
498
|
477
|
488
|
1,952
|
481
|
425
|
515
|
531
|
|
Total
adjustments
|
2,475
|
584
|
546
|
726
|
619
|
2,339
|
692
|
384
|
650
|
613
|
|
Adjusted
operating profit
|
$5,797
|
$1,613
|
$1,515
|
$1,317
|
$1,352
|
$5,272
|
$1,347
|
$1,384
|
$1,319
|
$1,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
percentage change
|
13%
|
57%
|
(3)%
|
(12)%
|
20%
|
|
|
|
|
|
|
Adjusted
percentage change
|
10%
|
20%
|
9%
|
-%
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
sales
|
$27,243
|
$7,272
|
$6,855
|
$6,377
|
$6,739
|
$28,228
|
$7,080
|
$7,000
|
$7,204
|
$6,944
|
|
Adjusted
sales
|
$27,243
|
$7,272
|
$6,855
|
$6,377
|
$6,739
|
$28,163
|
$7,077
|
$6,993
|
$7,179
|
$6,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
operating margin
|
12.2%
|
14.2%
|
14.1%
|
9.3%
|
10.9%
|
10.4%
|
9.3%
|
14.3%
|
9.3%
|
8.8%
|
|
Adjusted
operating margin
|
21.3%
|
22.2%
|
22.1%
|
20.7%
|
20.1%
|
18.7%
|
19.0%
|
19.8%
|
18.4%
|
17.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
Reported
depreciation and amortization
|
$4,626
|
$1,192
|
$1,168
|
$1,124
|
$1,142
|
$4,675
|
$1,162
|
$1,095
|
$1,195
|
$1,223
|
|
Less: Purchase
accounting impacts - Linde AG (c)
|
(1,920)
|
(489)
|
(487)
|
(468)
|
(476)
|
(1,940)
|
(481)
|
(423)
|
(515)
|
(521)
|
|
Adjusted
depreciation and amortization
|
$2,706
|
$703
|
$681
|
$656
|
$666
|
$2,735
|
$681
|
$672
|
$680
|
$702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Other Income (Expense) - net
|
|
|
|
|
|
|
|
|
|
|
|
Reported Other
Income (Expense) - net
|
$(61)
|
$(47)
|
$(29)
|
$-
|
$15
|
$68
|
$29
|
$11
|
$10
|
$18
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
(49)
|
(17)
|
(11)
|
(9)
|
(12)
|
-
|
-
|
-
|
-
|
-
|
|
Adjusted Other
Income (Expense) - net
|
$(12)
|
$(30)
|
$(18)
|
$9
|
$27
|
$68
|
$29
|
$11
|
$10
|
$18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service
Cost
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
pension and OPEB cost (benefit), excluding service
cost
|
$(177)
|
$(46)
|
$(41)
|
$(45)
|
$(45)
|
$(32)
|
$(25)
|
$2
|
$(24)
|
$15
|
|
Add: Pension
settlement charges
|
(6)
|
-
|
(6)
|
-
|
-
|
(107)
|
(6)
|
(40)
|
(10)
|
(51)
|
|
Adjusted Net
Pension and OPEB cost (benefit), excluding service
costs
|
$(183)
|
$(46)
|
$(47)
|
$(45)
|
$(45)
|
$(139)
|
$(31)
|
$(38)
|
$(34)
|
$(36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Interest Expense - Net
|
|
|
|
|
|
|
|
|
|
|
|
Reported
interest expense - net
|
$115
|
$35
|
$38
|
$18
|
$24
|
$38
|
$8
|
$(3)
|
$10
|
$23
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
85
|
18
|
23
|
22
|
22
|
96
|
22
|
22
|
25
|
27
|
|
Less: Bond
Redemption
|
(16)
|
(16)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Adjusted
interest expense - net
|
$184
|
$37
|
$61
|
$40
|
$46
|
$134
|
$30
|
$19
|
$35
|
$50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Income Taxes (a)
|
|
|
|
|
|
|
|
|
|
|
|
Reported
income taxes
|
$847
|
$253
|
$265
|
$164
|
$165
|
$769
|
$162
|
$298
|
$169
|
$140
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
399
|
107
|
75
|
95
|
122
|
450
|
105
|
99
|
119
|
127
|
|
Add: Pension
settlement charges
|
1
|
-
|
1
|
-
|
-
|
26
|
1
|
10
|
2
|
13
|
|
Add: Cost
reduction programs and other charges
|
130
|
20
|
12
|
62
|
36
|
83
|
53
|
(2)
|
26
|
6
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
-
|
-
|
(5)
|
-
|
(1)
|
(2)
|
(2)
|
|
Less: Net gain
on sale of businesses
|
-
|
-
|
-
|
-
|
-
|
(56)
|
-
|
(56)
|
-
|
-
|
|
Less: Bond
Redemption
|
4
|
4
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total
adjustments
|
534
|
131
|
88
|
157
|
158
|
498
|
159
|
50
|
145
|
144
|
|
Adjusted
income taxes
|
$1,381
|
$384
|
$353
|
$321
|
$323
|
$1,267
|
$321
|
$348
|
$314
|
$284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Effective Tax Rate (a)
|
|
|
|
|
|
|
|
|
|
|
|
Reported
income before income taxes and equity
investments
|
$3,384
|
$1,040
|
$972
|
$618
|
$754
|
$2,927
|
$672
|
$1,001
|
$683
|
$571
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
-
|
-
|
(16)
|
(1)
|
(2)
|
(6)
|
(7)
|
|
Add: Pension
settlement charge
|
6
|
-
|
6
|
-
|
-
|
107
|
6
|
40
|
10
|
51
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
1,884
|
488
|
475
|
455
|
466
|
1,856
|
459
|
403
|
490
|
504
|
|
Add: Cost
reduction programs and other charges
|
506
|
78
|
48
|
249
|
131
|
567
|
212
|
125
|
141
|
89
|
|
Less: Bond
Redemption
|
16
|
16
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Less: Net gain
on sale of businesses
|
-
|
-
|
-
|
-
|
-
|
(164)
|
-
|
(164)
|
-
|
-
|
|
Total
adjustments
|
2,412
|
582
|
529
|
704
|
597
|
2,350
|
676
|
402
|
635
|
637
|
|
Adjusted
income before income taxes and equity
investments
|
$5,796
|
$1,622
|
$1,501
|
$1,322
|
$1,351
|
$5,277
|
$1,348
|
$1,403
|
$1,318
|
$1,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
Income taxes
|
$847
|
$253
|
$265
|
$164
|
$165
|
$769
|
$162
|
$298
|
$169
|
$140
|
|
Reported
effective tax rate
|
25.0%
|
24.3%
|
27.3%
|
26.5%
|
21.9%
|
26.3%
|
24.1%
|
29.8%
|
24.7%
|
24.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
income taxes
|
$1,381
|
$384
|
$353
|
$321
|
$323
|
$1,267
|
$321
|
$348
|
$314
|
$284
|
|
Adjusted
effective tax rate
|
23.8%
|
23.7%
|
23.5%
|
24.3%
|
23.9%
|
24.0%
|
23.8%
|
24.8%
|
23.8%
|
23.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Equity Investments
|
|
|
|
|
|
|
|
|
|
|
|
Reported
income from equity investments
|
$85
|
$16
|
$23
|
$29
|
$17
|
$114
|
$24
|
$28
|
$28
|
$34
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
57
|
15
|
14
|
14
|
14
|
57
|
14
|
15
|
14
|
14
|
|
Adjusted
income from equity investments
|
$142
|
$31
|
$37
|
$43
|
$31
|
$171
|
$38
|
$43
|
$42
|
$48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Noncontrolling Interests from Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
|
Reported
noncontrolling interests from continuing
operations
|
$(125)
|
$(34)
|
$(31)
|
$(25)
|
$(35)
|
$(89)
|
$(27)
|
$(3)
|
$(29)
|
$(30)
|
|
Add: Cost
reduction programs and other charges
|
(4)
|
(4)
|
-
|
-
|
-
|
(35)
|
-
|
(35)
|
-
|
-
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
(57)
|
(14)
|
(14)
|
(14)
|
(15)
|
(54)
|
(14)
|
(8)
|
(17)
|
(15)
|
|
Total
adjustments
|
(61)
|
(18)
|
(14)
|
(14)
|
(15)
|
(89)
|
(14)
|
(43)
|
(17)
|
(15)
|
|
Adjusted
noncontrolling interests from continuing
operations
|
$(186)
|
$(52)
|
$(45)
|
$(39)
|
$(50)
|
$(178)
|
$(41)
|
$(46)
|
$(46)
|
$(45)
|
|
Page
10/12
|
|
|
|
Press release
LINDE PLC AND SUBSIDIARIES
APPENDIX
NON-GAAP MEASURES AND RECONCILIATIONS
(Millions of dollars, except per share data)
(UNAUDITED)
|
|
2020
|
2019
|
||||||||
|
|
Year to Date
December 31,
|
Q4
|
Q3
|
Q2
|
Q1
|
Year to Date
December 31,
|
Q4
|
Q3
|
Q2
|
Q1
|
|
Adjusted Income from Continuing Operations (b)
|
|
|
|
|
|
|
|
|
|
|
|
Reported
income from continuing operations
|
$2,497
|
$769
|
$699
|
$458
|
$571
|
$2,183
|
$507
|
$728
|
$513
|
$435
|
|
Add: Pension
settlement charge
|
5
|
-
|
5
|
-
|
-
|
81
|
5
|
30
|
8
|
38
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
-
|
-
|
(12)
|
(1)
|
(2)
|
(4)
|
(5)
|
|
Add: Cost
reduction programs and other charges
|
372
|
54
|
36
|
187
|
95
|
449
|
159
|
92
|
115
|
83
|
|
Less: Net gain
on sale of business
|
-
|
-
|
-
|
-
|
-
|
(108)
|
-
|
(108)
|
-
|
-
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
1,485
|
382
|
400
|
360
|
343
|
1,410
|
354
|
312
|
368
|
376
|
|
Less: Bond
Redemption
|
12
|
12
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total
adjustments
|
1,874
|
448
|
441
|
547
|
438
|
1,820
|
517
|
324
|
487
|
492
|
|
Adjusted
income from continuing operations
|
$4,371
|
$1,217
|
$1,140
|
$1,005
|
$1,009
|
$4,003
|
$1,024
|
$1,052
|
$1,000
|
$927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS from Continuing Operations
(b)
|
|
|
|
|
|
|
|
|
|
|
|
Reported
diluted EPS from continuing operations
|
$4.70
|
$1.45
|
$1.32
|
$0.87
|
$1.07
|
$4.00
|
$0.94
|
$1.34
|
$0.94
|
$0.79
|
|
Add: Pension
settlement charge
|
0.01
|
-
|
0.01
|
-
|
-
|
0.16
|
0.01
|
0.07
|
0.01
|
0.07
|
|
Add: Cost
reduction programs and other charges
|
0.70
|
0.10
|
0.07
|
0.35
|
0.18
|
0.83
|
0.29
|
0.17
|
0.22
|
0.15
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
-
|
-
|
(0.03)
|
-
|
(0.01)
|
(0.01)
|
(0.01)
|
|
Less: Net gain
on sale of business
|
-
|
-
|
-
|
-
|
-
|
(0.21)
|
-
|
(0.21)
|
-
|
-
|
|
Less: Bond
Redemption
|
0.02
|
0.02
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Add: Purchase
accounting impacts - Linde AG
|
2.80
|
0.73
|
0.75
|
0.68
|
0.64
|
2.59
|
0.65
|
0.58
|
0.67
|
0.69
|
|
Total
adjustments
|
3.53
|
0.85
|
0.83
|
1.03
|
0.82
|
3.34
|
0.95
|
0.60
|
0.89
|
0.90
|
|
Adjusted
diluted EPS from continuing operations
|
$8.23
|
$2.30
|
$2.15
|
$1.90
|
$1.89
|
$7.34
|
$1.89
|
$1.94
|
$1.83
|
$1.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
percentage change
|
18%
|
54%
|
(1)%
|
(7)%
|
35%
|
|
|
|
||
|
Adjusted
percentage change
|
12%
|
22%
|
11%
|
4%
|
12%
|
|
|
|
|
|
|
Adjusted Diluted EPS from Continuing Operations Guidance
(e)
|
|
First Quarter 2021
|
|
Full Year 2021
|
|
|
|
|||
|
|
|
Low End
|
|
High End
|
|
Low End
|
High End
|
|
|
|
|
2021 Adjusted
Guidance
|
|
$2.20
|
|
$2.25
|
|
$9.10
|
$9.30
|
|
|
|
|
Adjusted
percentage change versus 2020 adjusted diluted
EPS
|
16%
|
|
19%
|
|
11%
|
13%
|
|
|
|
|
|
Add: Estimated
currency tailwind
|
(2)%
|
|
(2)%
|
|
(1)%
|
(1)%
|
|
|
|
|
|
Adjusted
percentage change excluding currency
|
14%
|
|
17%
|
|
10%
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA and % of Sales
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$2,497
|
$769
|
$699
|
$458
|
$571
|
$2,183
|
$507
|
$728
|
$513
|
$435
|
|
Add:
Noncontrolling interests related to continuing
operations
|
125
|
34
|
31
|
25
|
35
|
89
|
27
|
3
|
29
|
30
|
|
Add: Net
pension and OPEB cost (benefit), excluding service
cost
|
(177)
|
(46)
|
(41)
|
(45)
|
(45)
|
(32)
|
(25)
|
2
|
(24)
|
15
|
|
Add: Interest
expense
|
115
|
35
|
38
|
18
|
24
|
38
|
8
|
(3)
|
10
|
23
|
|
Add: Income
taxes
|
847
|
253
|
265
|
164
|
165
|
769
|
162
|
298
|
169
|
140
|
|
Add:
Depreciation and amortization
|
4,626
|
1,192
|
1,168
|
1,124
|
1,142
|
4,675
|
1,162
|
1,095
|
1,195
|
1,223
|
|
EBITDA from
continuing operations
|
8,033
|
2,237
|
2,160
|
1,744
|
1,892
|
7,722
|
1,841
|
2,123
|
1,892
|
1,866
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
-
|
-
|
(16)
|
(1)
|
(2)
|
(6)
|
(7)
|
|
Less: Net gain
on sale of business
|
-
|
-
|
-
|
-
|
-
|
(164)
|
-
|
(164)
|
-
|
-
|
|
Add: Cost
reduction programs and other charges
|
506
|
78
|
48
|
249
|
131
|
567
|
212
|
125
|
141
|
89
|
|
Add: Purchase
accounting impacts - Linde AG
|
106
|
32
|
25
|
23
|
26
|
69
|
14
|
17
|
14
|
24
|
|
Total
adjustments
|
612
|
110
|
73
|
272
|
157
|
456
|
225
|
(24)
|
149
|
106
|
|
Adjusted
EBITDA from continuing operations
|
$8,645
|
$2,347
|
$2,233
|
$2,016
|
$2,049
|
$8,178
|
$2,066
|
$2,099
|
$2,041
|
$1,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
sales
|
$27,243
|
$7,272
|
$6,855
|
$6,377
|
$6,739
|
$28,228
|
$7,080
|
$7,000
|
$7,204
|
$6,944
|
|
Adjusted
sales
|
$27,243
|
$7,272
|
$6,855
|
$6,377
|
$6,739
|
$28,163
|
$7,077
|
$6,993
|
$7,179
|
$6,914
|
|
% of
sales
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from
continuing operations
|
29.5%
|
30.8%
|
31.5%
|
27.3%
|
28.1%
|
27.4%
|
26.0%
|
30.3%
|
26.3%
|
26.9%
|
|
Adjusted
EBITDA from continuing operations
|
31.7%
|
32.3%
|
32.6%
|
31.6%
|
30.4%
|
29.0%
|
29.2%
|
30.0%
|
28.4%
|
28.5%
|
(a) The income
tax expense (benefit) on the on-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 business combination was a merger of equals in an all-stock
merger transaction, with no cash consideration, (ii) 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 from Continuing Operations: Represents the noncontrolling interests’
ownership portion of the adjustments described above determined on
an entity by entity basis.
(d) To adjust
for the results of Praxair's merger-related
divestitures.
(e) We are
providing adjusted earnings per share ("EPS") guidance for 2021.
This is a non-GAAP financial measure that represents diluted
earnings per share from continuing operations (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, 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
11/12
|
|
|
|
Press release
LINDE PLC AND SUBSIDIARIES
APPENDIX
NON-GAAP MEASURES AND RECONCILIATIONS
(Millions of dollars)
(UNAUDITED)
|
|
2020
|
2019
|
2018
|
||||||
|
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$2,434
|
$1,884
|
$1,764
|
$1,347
|
$2,174
|
$1,872
|
$1,005
|
$1,068
|
$1,305
|
|
Less: Capital
Expenditures
|
(1,027)
|
(787)
|
(783)
|
(803)
|
(1,015)
|
(959)
|
(865)
|
(843)
|
(827)
|
|
Free Cash Flow
|
$1,407
|
$1,097
|
$981
|
$544
|
$1,159
|
$913
|
$140
|
$225
|
$478
|
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
|
$16,154
|
$17,803
|
$17,480
|
$16,875
|
$13,956
|
$13,201
|
$13,957
|
$14,146
|
$15,296
|
|
Less: Cash and
cash equivalents
|
(3,754)
|
(5,199)
|
(4,941)
|
(4,014)
|
(2,700)
|
(2,120)
|
(2,686)
|
(5,791)
|
(4,466)
|
|
Net
debt
|
12,400
|
12,604
|
12,539
|
12,861
|
11,256
|
11,081
|
11,271
|
8,355
|
10,830
|
|
Less: Purchase
accounting impacts - Linde AG
|
(121)
|
(133)
|
(150)
|
(170)
|
(195)
|
(211)
|
(243)
|
(262)
|
(291)
|
|
Adjusted net
debt
|
$12,279
|
$12,471
|
$12,389
|
$12,691
|
$11,061
|
$10,870
|
$11,028
|
$8,093
|
$10,539
|
|
Less: Net
assets held for sale
|
(3)
|
(2)
|
(2)
|
(115)
|
(123)
|
(223)
|
(272)
|
(1,629)
|
(4,730)
|
|
Adjusted net
debt less net assets held for sale
|
$12,276
|
$12,469
|
$12,387
|
$12,576
|
$10,938
|
$10,647
|
$10,756
|
$6,464
|
$5,809
|
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
income from continuing operations
|
$769
|
$699
|
$458
|
$571
|
$507
|
$728
|
$513
|
$435
|
$2,870
|
|
Add:
noncontrolling interests from continuing
operations
|
34
|
31
|
25
|
35
|
27
|
3
|
29
|
30
|
(33)
|
|
Add: interest
expense - net
|
35
|
38
|
18
|
24
|
8
|
(3)
|
10
|
23
|
72
|
|
Less: tax
benefit on interest expense - net *
|
(9)
|
(10)
|
(5)
|
(6)
|
(2)
|
1
|
(3)
|
(6)
|
(18)
|
|
Reported NOPAT
|
$829
|
$758
|
$496
|
$624
|
$540
|
$729
|
$549
|
$482
|
$2,891
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
income from continuing operations
|
$1,217
|
$1,140
|
$1,005
|
$1,009
|
$1,024
|
$1,052
|
$1,000
|
$927
|
$841
|
|
Add: adjusted
noncontrolling interests from continuing
operations
|
52
|
45
|
39
|
50
|
41
|
46
|
46
|
45
|
40
|
|
Add: adjusted
interest expense - net
|
37
|
61
|
40
|
46
|
30
|
19
|
35
|
50
|
50
|
|
Less: tax
benefit on interest expense - net *
|
(9)
|
(15)
|
(10)
|
(12)
|
(7)
|
(5)
|
(9)
|
(13)
|
(12)
|
|
Adjusted NOPAT
|
$1,297
|
$1,231
|
$1,074
|
$1,093
|
$1,088
|
$1,112
|
$1,072
|
$1,009
|
$919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4-quarter
trailing reported NOPAT
|
$2,707
|
$2,418
|
$2,389
|
$2,442
|
$2,300
|
|
|
|
|
|
4-quarter
trailing adjusted NOPAT
|
$4,695
|
$4,486
|
$4,367
|
$4,365
|
$4,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and
redeemable noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
$13
|
$13
|
$13
|
$92
|
$113
|
$14
|
$15
|
$15
|
$16
|
|
Linde plc
shareholders' equity
|
47,317
|
46,175
|
45,537
|
44,776
|
49,074
|
48,953
|
50,564
|
51,175
|
51,596
|
|
Noncontrolling
interests
|
2,252
|
2,404
|
2,387
|
2,375
|
2,448
|
2,341
|
2,315
|
5,457
|
5,484
|
|
Total equity
and redeemable noncontrolling interests
|
$49,582
|
$48,592
|
$47,937
|
$47,243
|
$51,635
|
$51,308
|
$52,894
|
$56,647
|
$57,096
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
capital
|
$61,979
|
$61,194
|
$60,474
|
$59,989
|
$62,768
|
$62,166
|
$63,893
|
$63,373
|
$63,196
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
and redeemable noncontrolling interests
|
$49,582
|
$48,592
|
$47,937
|
$47,243
|
$51,635
|
$51,308
|
$52,894
|
$56,647
|
$57,096
|
|
Add: Adjusted
net debt less net assets held for sale
|
12,276
|
12,469
|
12,387
|
12,576
|
10,938
|
10,647
|
10,756
|
6,464
|
5,809
|
|
Less: Linde AG
Goodwill (a)
|
24,256
|
24,256
|
24,256
|
24,256
|
24,256
|
24,197
|
24,197
|
24,197
|
24,197
|
|
Less: Linde AG
Indefinite lived intangibles (a)
|
1,868
|
1,868
|
1,868
|
1,868
|
1,868
|
1,868
|
1,868
|
1,868
|
1,868
|
|
Adjusted
capital
|
$35,734
|
$34,937
|
$34,200
|
$33,695
|
$36,449
|
$35,890
|
$37,585
|
$37,046
|
$36,840
|
|
(a)
Represent balance sheet purchase accounting impacts of
non-amortizing assets related to the Linde AG merger.
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Ending capital
(see above)
|
$61,979
|
$61,194
|
$60,474
|
$59,989
|
$62,768
|
|
|
|
|
|
5-quarter
average ending capital
|
$61,281
|
$61,318
|
$61,858
|
$62,438
|
$63,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
adjusted capital (see above)
|
$35,734
|
$34,937
|
$34,200
|
$33,695
|
$36,449
|
|
|
|
|
|
5-quarter
average ending adjusted capital
|
$35,003
|
$35,034
|
$35,564
|
$36,133
|
$36,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax ROC (4 quarter reported NOPAT / 5-quarter average ending
capital)
|
4.4%
|
3.9%
|
3.9%
|
3.9%
|
3.6%
|
|
|
|
|
|
Adjusted after-tax ROC (4 quarter trailing adjusted NOPAT /
5-quarter average ending adjusted capital)
|
13.4%
|
12.8%
|
12.3%
|
12.1%
|
11.6%
|
|
|
|
|
*
Tax
benefit on interest expense - net is generally presented using the
reported effective rate.
|
Page
12/12
|
|
|
|