# EDGAR Filing Document

**Accession Number:** 0001707925
**File Stem:** 0001654954-23-001367
**Filing Date:** 2023-2
**Character Count:** 59729
**Document Hash:** cca1d313a4431e154e515923f8d1f883
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-23-001367.hdr.sgml**: 20230207

**ACCESSION NUMBER**: 0001654954-23-001367

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20230207

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230207

**DATE AS OF CHANGE**: 20230207

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LINDE PLC
- **CENTRAL INDEX KEY:** 0001707925
- **STANDARD INDUSTRIAL CLASSIFICATION:** INDUSTRIAL INORGANIC CHEMICALS [2810]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** L2
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38730
- **FILM NUMBER:** 23592874

**BUSINESS ADDRESS:**
- **STREET 1:** FORGE, 43 CHURCH STREET WEST
- **CITY:** WOKING SURREY
- **STATE:** X0
- **ZIP:** GU216HT
- **BUSINESS PHONE:** 00441483242200

**MAIL ADDRESS:**
- **STREET 1:** FORGE, 43 CHURCH STREET WEST
- **CITY:** WOKING SURREY
- **STATE:** X0
- **ZIP:** GU216HT

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ZAMALIGHT PLC
- **DATE OF NAME CHANGE:** 20170622

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRAXAIR
- **DATE OF NAME CHANGE:** 20170614

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ZAMALIGHT PLC
- **DATE OF NAME CHANGE:** 20170530

?xml version="1.0" encoding="utf-8"?lin_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

**DATE OF REPORT (Date of earliest event reported): February 7, 2023**

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| |
|:---|
| **Linde plc** |
| **(Exact name of registrant as specified in its charter)**  |

---

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| | | |
|:---|:---|:---|
| **Ireland** | **001-38730** | **98-1448883** |
| **(State or other jurisdiction**<br>**of incorporation)** | **(Commission**<br>**File Number)** | **(I.R.S. Employer**<br>**Identification No.)** |

---

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| | |
|:---|:---|
| **10 Riverview Dr.**<br>**Danbury, Connecticut**<br>**United States 06810**  | **Forge, 43 Church Street West**<br>**Woking, Surrey GU21 6HT**<br>**United Kingdom** |

---

 **(Address of principal executive offices) (Zip Code)**

**+44 1483 242200**

**(Registrant's telephone numbers, including area code)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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| | | |
|:---|:---|:---|
| ☐ | ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |

---

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
| Ordinary shares (€0.001 nominal value per share) | LIN | New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**<u>ITEM 2.02 Results of Operations and Financial Condition</u>**

On February 7, 2023, Linde plc issued a press release setting forth Linde plc's results of operations for the quarter and year ended December 31, 2022. A copy of Linde plc's press release is furnished herewith as Exhibit 99.1 and is hereby incorporated by reference in this Item 2.02.

**ITEM 9.01. Financial Statements and Exhibits.**

(d) Exhibits. The following exhibit is furnished herewith pursuant to Item 2.02 hereof:

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [99.1](lin_ex991.htm) | [Press Release dated February 7, 2023](lin_ex991.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
| **LINDE PLC** | **LINDE PLC** |
| By: | /s/ Kelcey E. Hoyt |
| Name: | Kelcey E. Hoyt |
| Title: | Principal Accounting Officer |

---

Date: February 7, 2023

## Exhibit 99.1

**EXHIBIT 99.1**

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| | |
|:---|:---|
| ![](lin_ex991img2.jpg) | ![](lin_ex991img1.jpg) |

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**Linde Reports Full-Year and Fourth-Quarter 2022 Results**

**Full-Year Highlights**

➢ Sales $33.4 billion, up 8%, up 13% ex. FX

➢ Operating profit $5.4 billion, up 8%; adjusted operating profit $7.9 billion, up 10%

➢ Operating profit margin 16.1%; adjusted operating profit margin 23.7%, up 40 basis points versus prior year

➢ EPS $8.23, up 12%; adjusted EPS $12.29, up 15% or 20% ex. FX

➢ Returned $7.5 billion to shareholders through dividends and share repurchases, up 11%

➢ Total project backlog of $9.2 billion

**Fourth-Quarter Highlights**

➢ Sales $7.9 billion, down 5% YoY, up 1% ex. FX

➢ Operating profit $1.7 billion, adjusted operating profit $2.0 billion, up 9%

➢ Operating profit margin 21.4%; adjusted operating profit margin 25.3%, up 310 basis points

➢ EPS $2.67, up 35%; adjusted EPS $3.16, up 14%

**2023 Guidance**

➢ First-quarter 2023 adjusted EPS guidance $3.05 - $3.15, represents 9%-13% growth ex. FX

➢ Full-year 2023 adjusted EPS guidance $13.15 - $13.55, represents 9%-12% growth ex. FX

Woking, UK, February 7, 2023 – Linde plc (NYSE: LIN; FWB: LIN) today reported fourth-quarter 2022 income from continuing operations of $1,328 million and diluted earnings per share of $2.67, up 30% and 35% respectively. Excluding Linde AG purchase accounting impacts and other charges, adjusted income from continuing operations was $1,574 million, up 10% versus prior year. Adjusted earnings per share was $3.16, 14% above prior year.

Linde's sales for the fourth quarter were $7,899 million, 5% below prior year or 1% above when excluding negative currency impact. Compared to prior year, underlying sales increased 7% from 8% price attainment partially offset by 1% lower volumes.

Fourth-quarter operating profit was $1,687 million. Adjusted operating profit of $2,001 million was up 9% versus prior year led by higher price and continued productivity initiatives across all segments. Adjusted operating profit margin of 25.3% was 310 basis points above prior year and 350 basis points higher when excluding the effects of cost pass-through.

Fourth-quarter operating cash flow of $2,095 million decreased 35% versus prior year driven primarily by lower engineering project prepayments. After capital expenditures of $936 million, free cash flow was $1,159 million. During the quarter, the company returned $1,264 million to shareholders through dividends and stock repurchases, net of issuances.

For full-year 2022, sales were $33.4 billion, 8% above 2021. Compared to prior year, underlying sales increased 8% from 7% price attainment and 1% higher volumes. Sales growth was broad-based across all end markets except healthcare. Operating profit was $5.4 billion and adjusted operating profit was $7.9 billion, 10% above prior year. Adjusted operating profit margin was 23.7% of sales, 40 basis points higher versus 2021, or 160 basis points higher when excluding the effects of cost pass-through. Diluted earnings per share were $8.23 and adjusted diluted earnings per share were $12.29, up 15% versus prior year.

In 2022, Linde generated strong operating cash flow of $8.9 billion. The company invested $3.2 billion in capital expenditures and returned to shareholders in the form of dividends and share buybacks $7.5 billion, 11% above prior year.

Page 1/14

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| | |
|:---|:---|
| ![](lin_ex991img2.jpg) | ![](lin_ex991img1.jpg) |

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Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, "Despite the challenging environment, the Linde team again delivered outstanding performance including a record ROC of 22.9%, expanding operating margin to 25.3% and a ninth consecutive quarter of delivering 20% or more EPS growth ex. FX. This resilient performance is a result of our balanced end market portfolio, unrivaled network density and rigorous capital discipline."

Lamba continued, "Looking ahead, the geopolitical and macro environment continues to remain uncertain. However, we are well positioned to win more than our fair share of high-quality projects, primarily in clean-energy and again create shareholder value by leveraging all the opportunities that lie ahead."

For the full year 2023, the company expects adjusted diluted earnings per share to be in the range of $13.15 to $13.55, up 7% to 10% versus prior year or 9% to 12% when excluding estimated currency headwinds. Full-year capital expenditures are expected to range between $3.5 billion and $4.0 billion to support operating and growth requirements, including the contractual sale of gas backlog. For the first quarter 2023, adjusted earnings per share is expected to be in the range of $3.05 to $3.15, 4% to 8% above prior-year quarter. This range estimates 5% unfavorable currency.

**Fourth-Quarter 2022 Results by Segment**

Americas sales of $3,421 million grew 9% versus prior-year quarter. Compared with fourth quarter 2021, underlying sales increased 7% driven by 7% higher pricing as volumes were stable. Operating profit of $944 million was 27.6% of sales, 90 basis points above prior year and 110 basis points higher when excluding the effects of cost pass-through.

APAC (Asia Pacific) sales of $1,567 million were 1% below prior year. Compared to prior year, underlying sales grew 8% driven by 5% price attainment and 3% volume growth, primarily in the electronics, chemicals and energy end markets including project start-ups. Operating profit of $416 million was 26.5% of sales, 260 basis points above prior year. Year over year cost pass-through was immaterial.

EMEA (Europe, Middle East & Africa) sales of $2,026 million were down 2% versus prior year. Compared with fourth-quarter 2021, underlying sales grew 7%, driven by 14% higher pricing partially offset by 7% lower volumes. Operating profit of $509 million was 25.1% of sales, 200 basis points above prior year and 330 basis points higher when excluding the effects of cost pass-through.

Linde Engineering sales were $562 million, 41% below prior year, and operating profit was $157 million or 27.9% of sales. Order intake for the quarter was $696 million and third-party sale of equipment backlog was $3.5 billion.

**Earnings Call**

A teleconference on Linde's fourth-quarter 2022 results is being held today at 9:00 am EST.

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| | |
|:---|:---|
| **Live conference call** | US Toll-Free Dial-In Number: 1 888 770 7292<br> Germany Toll-Free Dial-In Number: 0800 000 0105<br> UK Toll-Free Dial-In Number: 0800 358 0970<br> Access code: 6877110 |
| **Live webcast (listen-only)** | https://investors.linde.com/events-presentations |

---

Materials to be used in the teleconference are also available on the website.

Page 2/14

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|:---|:---|
| ![](lin_ex991img2.jpg) | ![](lin_ex991img1.jpg) |

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**About Linde**

Linde is a leading global industrial gases and engineering company with 2022 sales of $33 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, decarbonize and protect our planet.

The company serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases and technologies are used in countless applications including production of clean hydrogen and carbon capture systems critical to the energy transition, life-saving medical oxygen and high-purity & specialty gases for electronics. 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 2023. 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, any impairment or other charges related to scaling back operations in Russia as actions are defined and executed and as sanctions are enacted that impact the Company's operations, 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.

**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 future results or circumstances to differ materially from 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, 2021 filed with the SEC on February 28, 2022 which should be reviewed carefully. Please consider Linde plc's forward-looking statements in light of those risks.

Page 3/14

**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 | Sales | Operating Profit | Operating Profit | Income from Continuing Operations | Income from Continuing Operations | Diluted EPS from Continuing Operations | Diluted EPS from Continuing Operations |
| **Quarter Ended December 31** | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Reported GAAP Amounts | $7899 | $8298 | $1687 | $1337 | $1328 | $1024 | $2.67 | $1.98 |
| Other charges (a) |  |  | 25 | 51 | 16 | 51 | 0.03 | 0.10 |
| Purchase accounting impacts - Linde AG (c) |  |  | 289 | 453 | 230 | 356 | 0.46 | 0.69 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total adjustments |  |  | 314 | 504 | 246 | 407 | 0.49 | 0.79 |
| **Adjusted amounts** | $7899 | $8298 | $2001 | $1841 | $1574 | $1431 | $3.16 | $2.77 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (Millions of dollars, except per share amounts) | Sales | Sales | Operating Profit | Operating Profit | Income from Continuing Operations | Income from Continuing Operations | Diluted EPS from Continuing Operations | Diluted EPS from Continuing Operations |
| **Year to Date December 31** | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Reported GAAP Amounts | $33364 | $30793 | $5369 | $4984 | $4147 | $3821 | $8.23 | $7.32 |
| Russia-Ukraine conflict and other charges (a) |  |  | 1029 | 273 | 893 | 279 | 1.77 | 0.53 |
| Pension settlement charges (b) |  |  |  |  | 5 | 3 | 0.01 | 0.01 |
| Purchase accounting impacts - Linde AG (c) |  |  | 1506 | 1919 | 1150 | 1476 | 2.28 | 2.83 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total adjustments |  |  | 2535 | 2192 | 2048 | 1758 | 4.06 | 3.37 |
| **Adjusted amounts** | $33364 | $30793 | $7904 | $7176 | $6195 | $5579 | $12.29 | $10.69 |

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_________

(a) Fourth quarter 2022 charges relate primarily to cost reduction program and other charges. 2022 year to date charges relate primarily to charges associated with the deconsolidation and impairment of Russian subsidiaries resulting from the ongoing war in Ukraine and related sanctions. 2021 charges relate to cost reduction program and other charges, primarily severance.

(b) To adjust for pension settlement charges.

(c) To adjust for purchase accounting impacts related to the merger.

Page 4/14

**LINDE PLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF INCOME**

**(UNAUDITED)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Quarter Ended December 31, | Quarter Ended December 31, | Year To Date December 31, | Year To Date December 31, |
| (Millions of dollars, except per share data) | 2022 | 2021 | 2022 | 2021 |
| **Sales** | $7899 | $8298 | $33364 | $30793 |
| Cost of sales | 4427 | 4927 | 19450 | 17543 |
| Selling, general and administrative | 764 | 787 | 3107 | 3189 |
| Depreciation and amortization | 956 | 1135 | 4204 | 4635 |
| Research and development | 36 | 38 | 143 | 143 |
| Russia-Ukraine conflict and other charges | 25 | 51 | 1029 | 273 |
| Other income (expense) - net | (4) | (23) | (62) | (26) |
| **Operating Profit** | 1687 | 1337 | 5369 | 4984 |
| Interest expense - net | 31 | 31 | 63 | 77 |
| Net pension and OPEB cost (benefit), excluding service cost | (58) | (49) | (237) | (192) |
| **Income From Continuing Operations Before Income Taxes and Equity Investments** | 1714 | 1355 | 5543 | 5099 |
| Income taxes | 388 | 339 | 1434 | 1262 |
| **Income From Continuing Operations Before Equity Investments** | 1326 | 1016 | 4109 | 3837 |
| Income from equity investments | 35 | 38 | 172 | 119 |
| **Income From Continuing Operations (Including Noncontrolling Interests)** | 1361 | 1054 | 4281 | 3956 |
| Add: income from discontinued operations, net of tax |  | 2 |  | 5 |
| **Income (Including Noncontrolling Interests)** | 1361 | 1056 | 4281 | 3961 |
| Less: noncontrolling interests from continuing operations | (33) | (30) | (134) | (135) |
| **Net Income – Linde plc** | $1328 | $1026 | $4147 | $3826 |
| **Net Income – Linde plc** |  |  |  |  |
| Income from continuing operations | $1328 | $1024 | $4147 | $3821 |
| Income from discontinued operations | $— | $2 | $— | $5 |
| **Per Share Data – Linde plc Shareholders** |  |  |  |  |
| Basic earnings per share from continuing operations | $2.69 | $2.00 | $8.30 | $7.39 |
| Basic earnings per share from discontinued operations |  |  |  | 0.01 |
| **Basic earnings per share** | $2.69 | $2.00 | $8.30 | $7.40 |
| Diluted earnings per share from continuing operations | $2.67 | $1.98 | $8.23 | $7.32 |
| Diluted earnings per share from discontinued operations |  |  |  | 0.01 |
| **Diluted earnings per share** | $2.67 | $1.98 | $8.23 | $7.33 |
| Cash dividends | $1.17 | $1.06 | $4.68 | $4.24 |
| **Weighted Average Shares Outstanding (000's):** |  |  |  |  |
| Basic shares outstanding (000's) | 493652 | 511234 | 499736 | 516896 |
| Diluted shares outstanding (000's) | 497922 | 516276 | 504038 | 521875 |
| Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP. | Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP. | Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP. | Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP. | Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP. |

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**LINDE PLC AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEET**

**(UNAUDITED)**

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| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
| (Millions of dollars) | 2022 | 2021 |
| **Assets** |  |  |
| Cash and cash equivalents | $5436 | $2823 |
| Accounts receivable - net | 4559 | 4499 |
| Contract assets | 124 | 134 |
| Inventories | 1978 | 1733 |
| Prepaid and other current assets | 950 | 970 |
| **Total Current Assets** | 13047 | 10159 |
| Property, plant and equipment - net | 23548 | 26003 |
| Goodwill | 25817 | 27038 |
| Other intangibles - net | 12420 | 13802 |
| Other long-term assets | 4826 | 4603 |
| **Total Assets** | $79658 | $81605 |
| **Liabilities and equity** |  |  |
| Accounts payable | $2995 | $3503 |
| Short-term debt | 4117 | 1163 |
| Current portion of long-term debt | 1599 | 1709 |
| Contract liabilities | 3073 | 2940 |
| Other current liabilities | 4695 | 4328 |
| **Total Current Liabilities** | 16479 | 13643 |
| Long-term debt | 12198 | 11335 |
| Other long-term liabilities | 9594 | 11186 |
| **Total Liabilities** | $38271 | $36164 |
| **Redeemable noncontrolling interests** | 13 | 13 |
| **Linde plc Shareholders' Equity** |  |  |
| Ordinary shares | 1 | 1 |
| Additional paid-in capital | 40005 | 40180 |
| Retained earnings | 20541 | 18710 |
| Accumulated other comprehensive income (loss) | (5782) | (5048) |
| Less: Treasury shares, at cost | (14737) | (9808) |
| **Total Linde plc shareholders' equity** | 40028 | 44035 |
| Noncontrolling interests | 1346 | 1393 |
| **Total Equity** | $41374 | $45428 |
| **Total Liabilities and Equity**  | $79658 | $81605 |

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Page 6/14

**LINDE PLC AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS**

**(UNAUDITED)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Quarter Ended December 31, | Quarter Ended December 31, | Year to Date December 31, | Year to Date December 31, |
| (Millions of dollars) | 2022 | 2021 | 2022 | 2021 |
| **Operations** |  |  |  |  |
| Net income - Linde plc | $1328 | $1026 | $4147 | $3826 |
| Less: income from discontinued operations, net of tax and noncontrolling interests |  | (2) |  | (5) |
| Add: noncontrolling interests | 33 | 30 | 134 | 135 |
| Net income (including noncontrolling interests) | 1361 | 1054 | 4281 | 3956 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Russia-Ukraine conflict and other charges, net of payments (a) | (7) | 15 | 902 | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 956 | 1135 | 4204 | 4635 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 149 | (14) | (423) | (553) |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract assets and liabilities, net | (59) | 777 | 310 | 1307 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventory | (47) | (52) | (347) | (129) |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables and accruals | (69) | 316 | 307 | 447 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pension contributions | (7) | (10) | (51) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes and other | (182) | 12 | (319) | 6 |
| **Net cash provided by operating activities** | 2095 | 3233 | 8864 | 9725 |
| **Investing** |  |  |  |  |
| Capital expenditures | (936) | (839) | (3173) | (3086) |
| Acquisitions, net of cash acquired |  | (57) | (110) | (88) |
| Divestitures, net of cash divested and asset sales | 55 | 20 | 195 | 167 |
| **Net cash provided by (used for) investing activities** | (881) | (876) | (3088) | (3007) |
| **Financing** |  |  |  |  |
| Debt increase (decrease) - net | 1680 | (2322) | 4475 | (514) |
| Issuances of ordinary shares | 12 | 11 | 36 | 50 |
| Purchases of ordinary shares | (690) | (1361) | (5168) | (4612) |
| Cash dividends - Linde plc shareholders | (586) | (541) | (2344) | (2189) |
| Noncontrolling interest transactions and other | (26) | (4) | (88) | (323) |
| **Net cash provided by (used for) financing activities** | 390 | (4217) | (3089) | (7588) |
| **Effect of exchange rate changes on cash and cash equivalents** | 76 | (17) | (74) | (61) |
| Change in cash and cash equivalents | 1680 | (1877) | 2613 | (931) |
| Cash and cash equivalents, beginning-of-period | 3756 | 4700 | 2823 | 3754 |
| **Cash and cash equivalents, end-of-period** | $5436 | $2823 | $5436 | $2823 |

---

_________

(a) Russia-Ukraine conflict and other charges were $25 million and $51 million for the quarters ended December 31, 2022 and 2021, respectively, and $1,029 million and $273 million for the twelve months ended December 31, 2022 and 2021, respectively. Related cash outflows were $32 million and $36 million for the quarters ended December 31, 2022 and 2021, respectively, and $127 million and $175 million for the twelve months ended December 31, 2022 and 2021, respectively.

Page 7/14

**LINDE PLC AND SUBSIDIARIES**

**SEGMENT INFORMATION**

**(UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Quarter Ended December 31, | Quarter Ended December 31, | Year to Date December 31, | Year to Date December 31, |
| (Millions of dollars) | 2022 | 2021 | 2022 | 2021 |
| **Sales** |  |  |  |  |
| Americas | $3421 | $3152 | $13874 | $12103 |
| EMEA | 2026 | 2058 | 8443 | 7643 |
| APAC | 1567 | 1589 | 6480 | 6133 |
| Engineering | 562 | 946 | 2762 | 2867 |
| Other | 323 | 553 | 1805 | 2047 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total segment sales** | $7899 | $8298 | $33364 | $30793 |
| **Operating Profit** |  |  |  |  |
| Americas | $944 | $843 | $3732 | $3368 |
| EMEA | 509 | 475 | 2013 | 1889 |
| APAC | 416 | 380 | 1670 | 1502 |
| Engineering | 157 | 150 | 555 | 473 |
| Other | (25) | (7) | (66) | (56) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Segment operating profit** | 2001 | 1841 | 7904 | 7176 |
| Russia-Ukraine conflict and other charges | (25) | (51) | (1029) | (273) |
| Purchase accounting impacts - Linde AG | (289) | (453) | (1506) | (1919) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total operating profit** | $1687 | $1337 | $5369 | $4984 |

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Page 8/14

**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.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2022 | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2021 |
| (Millions of dollars) | Year to Date December 31, | Q4 | Q3 | Q2 | Q1 | Year to Date December 31, | Q4 | Q3 | Q2 | Q1 |
| **Adjusted Operating Profit and Operating Margin** |  |  |  |  |  |  |  |  |  |  |
| Reported operating profit | $5369 | $1687 | $1613 | $589 | $1480 | $4984 | $1337 | $1292 | $1142 | $1213 |
| Add: Russia-Ukraine conflict and other charges (a) | 1029 | 25 | 15 | 993 | (4) | 273 | 51 | 26 | 204 | (8) |
| Add: Purchase accounting impacts - Linde AG (c) | 1506 | 289 | 382 | 406 | 429 | 1919 | 453 | 492 | 491 | 483 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 2535 | 314 | 397 | 1399 | 425 | 2192 | 504 | 518 | 695 | 475 |
| **Adjusted operating profit** | $7904 | $2001 | $2010 | $1988 | $1905 | $7176 | $1841 | $1810 | $1837 | $1688 |
| Reported percentage change | 8% | 26% | 25% | (48)% | 22% | 50% | 30% | 33% | 93% | 65% |
| Adjusted percentage change | 10% | 9% | 11% | 8% | 13% | 24% | 14% | 19% | 39% | 25% |
| Reported sales | $33364 | $7899 | $8797 | $8457 | $8211 | $30793 | $8298 | $7668 | $7584 | $7243 |
| Reported operating margin | 16.1% | 21.4% | 18.3% | 7.0% | 18.0% | 16.2% | 16.1% | 16.8% | 15.1% | 16.7% |
| Adjusted operating margin | 23.7% | 25.3% | 22.8% | 23.5% | 23.2% | 23.3% | 22.2% | 23.6% | 24.2% | 23.3% |
| **Adjusted Depreciation and amortization** |  |  |  |  |  |  |  |  |  |  |
| Reported depreciation and amortization | $4204 | $956 | $1045 | $1091 | $1112 | $4635 | $1135 | $1163 | $1171 | $1166 |
| Less: Purchase accounting impacts - Linde AG (c) | (1481) | (285) | (377) | (401) | (418) | (1863) | (437) | (469) | (479) | (478) |
| **Adjusted depreciation and amortization** | $2723 | $671 | $668 | $690 | $694 | $2772 | $698 | $694 | $692 | $688 |
| **Adjusted Other Income (Expense) - net** |  |  |  |  |  |  |  |  |  |  |
| Reported Other Income (Expense) - net | $(62) | $(4) | $(34) | $(36) | $12 | $(26) | $(23) | $10 | $(17) | $4 |
| Add: Purchase accounting impacts - Linde AG (c) | (25) | (4) | (5) | (5) | (11) | (56) | (16) | (23) | (12) | (5) |
| **Adjusted Other Income (Expense) - net** | $(37) | $— | $(29) | $(31) | $23 | $30 | $(7) | $33 | $(5) | $9 |
| **Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost** |  |  |  |  |  |  |  |  |  |  |
| Reported net pension and OPEB cost (benefit), excluding service cost | $(237) | $(58) | $(53) | $(62) | $(64) | $(192) | $(49) | $(45) | $(49) | $(49) |
| Add: Pension settlement charges | (6) |  | (6) |  |  | (4) |  | (4) |  |  |
| **Adjusted Net Pension and OPEB cost (benefit), excluding service costs** | $(243) | $(58) | $(59) | $(62) | $(64) | $(196) | $(49) | $(49) | $(49) | $(49) |
| **Adjusted Interest Expense - Net** |  |  |  |  |  |  |  |  |  |  |
| Reported interest expense - net | $63 | $31 | $18 | $5 | $9 | $77 | $31 | $8 | $18 | $20 |
| Add: Purchase accounting impacts - Linde AG (c) | 35 | 8 | 8 | 9 | 10 | 53 | 10 | 10 | 15 | 18 |
| **Adjusted interest expense - net** | $98 | $39 | $26 | $14 | $19 | $130 | $41 | $18 | $33 | $38 |

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---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2022 | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2021 |
| (Millions of dollars) | Year to Date December 31, | Q4 | Q3 | Q2 | Q1 | Year to Date December 31, | Q4 | Q3 | Q2 | Q1 |
| **Adjusted Income Taxes (a)** |  |  |  |  |  |  |  |  |  |  |
| Reported income taxes | $1434 | $388 | $391 | $286 | $369 | $1262 | $339 | $321 | $334 | $268 |
| Add: Purchase accounting impacts - Linde AG (c) | 374 | 66 | 92 | 108 | 108 | 452 | 103 | 115 | 116 | 118 |
| Add: Pension settlement charges | 1 |  | 1 |  |  | 1 |  | 1 |  |  |
| Add: Russia-Ukraine conflict and other charges (a) | 136 | 9 | 26 | 104 | (3) | 29 |  | 3 | 6 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 511 | 75 | 119 | 212 | 105 | 482 | 103 | 119 | 122 | 138 |
| **Adjusted income taxes**  | $1945 | $463 | $510 | $498 | $474 | $1744 | $442 | $440 | $456 | $406 |
| **Adjusted Effective Tax Rate (a)** |  |  |  |  |  |  |  |  |  |  |
| Reported income before income taxes and equity investments | $5543 | $1714 | $1648 | $646 | $1535 | $5099 | $1355 | $1329 | $1173 | $1242 |
| Add: Pension settlement charge | 6 |  | 6 |  |  | 4 |  | 4 |  |  |
| Add: Purchase accounting impacts - Linde AG (c) | 1471 | 281 | 374 | 397 | 419 | 1866 | 443 | 482 | 476 | 465 |
| Add: Russia-Ukraine conflict and other charges (a) | 1029 | 25 | 15 | 993 | (4) | 273 | 51 | 26 | 204 | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 2506 | 306 | 395 | 1390 | 415 | 2143 | 494 | 512 | 680 | 457 |
| **Adjusted income before income taxes and equity investments** | $8049 | $2020 | $2043 | $2036 | $1950 | $7242 | $1849 | $1841 | $1853 | $1699 |
| Reported Income taxes | $1434 | $388 | $391 | $286 | $369 | $1262 | $339 | $321 | $334 | $268 |
| Reported effective tax rate | 25.9% | 22.6% | 23.7% | 44.3% | 24.0% | 24.7% | 25.0% | 24.2% | 28.5% | 21.6% |
| Adjusted income taxes | $1945 | $463 | $510 | $498 | $474 | $1744 | $442 | $440 | $456 | $406 |
| Adjusted effective tax rate | 24.2% | 22.9% | 25.0% | 24.5% | 24.3% | 24.1% | 23.9% | 23.9% | 24.6% | 23.9% |
| **Income from Equity Investments** |  |  |  |  |  |  |  |  |  |  |
| Reported income from equity investments | $172 | $35 | $43 | $50 | $44 | $119 | $38 | $1 | $37 | $43 |
| Add: Russia-Ukraine conflict and other charges (e) |  |  |  |  |  | 35 |  | 35 |  |  |
| Add: Purchase accounting impacts - Linde AG (c) | 75 | 18 | 18 | 19 | 20 | 77 | 20 | 19 | 19 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 75 | 18 | 18 | 19 | 20 | 112 | 20 | 54 | 19 | 19 |
| **Adjusted income from equity investments**  | $247 | $53 | $61 | $69 | $64 | $231 | $58 | $55 | $56 | $62 |
| **Adjusted Noncontrolling Interests from Continuing Operations** |  |  |  |  |  |  |  |  |  |  |
| Reported noncontrolling interests from continuing operations | $(134) | $(33) | $(27) | $(38) | $(36) | $(135) | $(30) | $(31) | $(36) | $(38) |
| Add: Purchase accounting impacts - Linde AG (c) | (22) | (3) | (12) | (3) | (4) | (15) | (4) | (4) | (2) | (5) |
| **Adjusted noncontrolling interests from continuing operations** | $(156) | $(36) | $(39) | $(41) | $(40) | $(150) | $(34) | $(35) | $(38) | $(43) |
| **Adjusted Income from Continuing Operations (b)** |  |  |  |  |  |  |  |  |  |  |
| Reported income from continuing operations | $4147 | $1328 | $1273 | $372 | $1174 | $3821 | $1024 | $978 | $840 | $979 |
| Add: Pension settlement charge | 5 |  | 5 |  |  | 3 |  | 3 |  |  |
| Add: Russia-Ukraine conflict and other charges (a) | 893 | 16 | (11) | 889 | (1) | 279 | 51 | 58 | 198 | (28) |
| Add: Purchase accounting impacts - Linde AG (c) | 1150 | 230 | 288 | 305 | 327 | 1476 | 356 | 382 | 377 | 361 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 2048 | 246 | 282 | 1194 | 326 | 1758 | 407 | 443 | 575 | 333 |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2022 | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2021 |
| (Millions of dollars, except per share data) | Year to Date December 31, | Q4 | Q3 | Q2 | Q1 | Year to Date December 31, | Q4 | Q3 | Q2 | Q1 |
| **Adjusted income from continuing operations** | $6195 | $1574 | $1555 | $1566 | $1500 | $5579 | $1431 | $1421 | $1415 | $1312 |
| **Adjusted Diluted EPS from Continuing Operations (b)** |  |  |  |  |  |  |  |  |  |  |
| Reported diluted EPS from continuing operations | $8.23 | $2.67 | $2.54 | $0.74 | $2.30 | $7.32 | $1.98 | $1.88 | $1.60 | $1.86 |
| Add: Pension settlement charge | 0.01 |  | 0.01 |  |  | 0.01 |  | 0.01 |  |  |
| Add: Russia-Ukraine conflict and other charges (a) | 1.77 | 0.03 | (0.02) | 1.76 |  | 0.53 | 0.10 | 0.11 | 0.38 | (0.05) |
| Add: Purchase accounting impacts - Linde AG (c) | 2.28 | 0.46 | 0.57 | 0.60 | 0.63 | 2.83 | 0.69 | 0.73 | 0.72 | 0.68 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 4.06 | 0.49 | 0.56 | 2.36 | 0.63 | 3.37 | 0.79 | 0.85 | 1.10 | 0.63 |
| **Adjusted diluted EPS from continuing operations** | $12.29 | $3.16 | $3.10 | $3.10 | $2.93 | $10.69 | $2.77 | $2.73 | $2.70 | $2.49 |
| Reported percentage change | 12% | 35% | 35% | (54)% | 24% | 56% | 37% | 42% | 84% | 74% |
| Adjusted percentage change | 15% | 14% | 14% | 15% | 18% | 30% | 20% | 27% | 42% | 32% |
|  |  | First Quarter 2023 | First Quarter 2023 |  | Full Year 2023 | Full Year 2023 |  |  |  |  |
| **Adjusted Diluted EPS from Continuing Operations Guidance (d)** |  | Low End | High End |  | Low End | High End |  |  |  |  |
| 2023 Adjusted Guidance |  | $3.05 | $3.15 |  | $13.15 | $13.55 |  |  |  |  |
| Adjusted percentage changes versus 2022 adjusted diluted EPS |  | 4% | 8% |  | 7% | 10% |  |  |  |  |
| Add: Estimated currency headwind/(tailwind) |  | 5% | 5% |  | 2% | 2% |  |  |  |  |
| **Adjusted percentage change excluding currency** |  | 9% | 13% |  | 9% | 12% |  |  |  |  |
| **Adjusted EBITDA and % of Sales** |  |  |  |  |  |  |  |  |  |  |
| Income from continuing operations | $4147 | $1328 | $1273 | $372 | $1174 | $3821 | $1024 | $978 | $840 | $979 |
| Add: Noncontrolling interests related to continuing operations | 134 | 33 | 27 | 38 | 36 | 135 | 30 | 31 | 36 | 38 |
| Add: Net pension and OPEB cost (benefit), excluding service cost | (237) | (58) | (53) | (62) | (64) | (192) | (49) | (45) | (49) | (49) |
| Add: Interest expense | 63 | 31 | 18 | 5 | 9 | 77 | 31 | 8 | 18 | 20 |
| Add: Income taxes | 1434 | 388 | 391 | 286 | 369 | 1262 | 339 | 321 | 334 | 268 |
| Add: Depreciation and amortization | 4204 | 956 | 1045 | 1091 | 1112 | 4635 | 1135 | 1163 | 1171 | 1166 |
| EBITDA from continuing operations | 9745 | 2678 | 2701 | 1730 | 2636 | 9738 | 2510 | 2456 | 2350 | 2422 |
| Add: Russia-Ukraine conflict and other charges (a) | 1029 | 25 | 15 | 993 | (4) | 308 | 51 | 61 | 204 | (8) |
| Add: Purchase accounting impacts - Linde AG (c) | 99 | 22 | 23 | 23 | 31 | 133 | 36 | 42 | 31 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | 1128 | 47 | 38 | 1016 | 27 | 441 | 87 | 103 | 235 | 16 |
| **Adjusted EBITDA from continuing operations**  | $10873 | $2725 | $2739 | $2746 | $2663 | $10179 | $2597 | $2559 | $2585 | $2438 |
| Reported sales | $33364 | $7899 | $8797 | $8457 | $8211 | $30793 | $8298 | $7668 | $7584 | $7243 |
| **% of sales**  |  |  |  |  |  |  |  |  |  |  |
| EBITDA from continuing operations | 29.2% | 33.9% | 30.7% | 20.5% | 32.1% | 31.6% | 30.2% | 32.0% | 31.0% | 33.4% |
| **Adjusted EBITDA from continuing operations** | 32.6% | 34.5% | 31.1% | 32.5% | 32.4% | 33.1% | 31.3% | 33.4% | 34.1% | 33.7% |

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Page 11/14

_________

(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 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) We are providing adjusted earnings per share ("EPS") guidance for 2023. 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, any impairment or other charges related to scaling back operations in Russia as actions are defined and executed and as sanctions are enacted that impact the Company's operations, 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.

(e) Impairment charge related to a joint venture in the APAC segment.

Page 12/14

**LINDE PLC AND SUBSIDIARIES**

**APPENDIX**

**NON-GAAP MEASURES AND RECONCILIATIONS**

**(UNAUDITED)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 |
| (Millions of dollars) | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| **<u>Free Cash Flow (FCF)</u>** - 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. | **<u>Free Cash Flow (FCF)</u>** - 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. | **<u>Free Cash Flow (FCF)</u>** - 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. | **<u>Free Cash Flow (FCF)</u>** - 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. | **<u>Free Cash Flow (FCF)</u>** - 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. | **<u>Free Cash Flow (FCF)</u>** - 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. | **<u>Free Cash Flow (FCF)</u>** - 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. | **<u>Free Cash Flow (FCF)</u>** - 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. | **<u>Free Cash Flow (FCF)</u>** - 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 | $2095 | $2636 | $2133 | $2000 | $3233 | $2556 | $1827 | $2109 |
| Less: Capital Expenditures | (936) | (762) | (826) | (649) | (839) | (741) | (744) | (762) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Free Cash Flow** | $1159 | $1874 | $1307 | $1351 | $2394 | $1815 | $1083 | $1347 |
| **<u>Net Debt</u>** - 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. | **<u>Net Debt</u>** - 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. | **<u>Net Debt</u>** - 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. | **<u>Net Debt</u>** - 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. | **<u>Net Debt</u>** - 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. | **<u>Net Debt</u>** - 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. | **<u>Net Debt</u>** - 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. | **<u>Net Debt</u>** - 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. | **<u>Net Debt</u>** - 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 | $17914 | $15338 | $16043 | $16456 | $14207 | $16727 | $15492 | $15750 |
| Less: Cash and cash equivalents | (5436) | (3756) | (3655) | (4464) | (2823) | (4700) | (3137) | (4096) |
| Net debt | 12478 | 11582 | 12388 | 11992 | 11384 | 12027 | 12355 | 11654 |
| Less: Purchase accounting impacts - Linde AG | (22) | (28) | (38) | (50) | (61) | (72) | (84) | (98) |
| Adjusted net debt | 12456 | 11554 | 12350 | 11942 | 11323 | 11955 | 12271 | 11556 |
| Less: Net assets held for sale |  |  |  |  |  | (1) | (1) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Adjusted net debt less net assets held for sale** | $12456 | $11554 | $12350 | $11942 | $11323 | $11954 | $12270 | $11552 |
| **<u>After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC)</u>** - 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). | **<u>After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC)</u>** - 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). | **<u>After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC)</u>** - 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). | **<u>After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC)</u>** - 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). | **<u>After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC)</u>** - 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). | **<u>After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC)</u>** - 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). | **<u>After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC)</u>** - 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). | **<u>After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC)</u>** - 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). | **<u>After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC)</u>** - 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 | $1328 | $1273 | $372 | $1174 | $1024 | $978 | $840 | $979 |
| Add: noncontrolling interests from continuing operations | 33 | 27 | 38 | 36 | 30 | 31 | 36 | 38 |
| Add: interest expense - net | 31 | 18 | 5 | 9 | 31 | 8 | 18 | 20 |
| Less: tax benefit on interest expense - net \* | (7) | (5) | (1) | (2) | (8) | (2) | (5) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Reported NOPAT** | $1385 | $1313 | $414 | $1217 | $1077 | $1015 | $889 | $1032 |
| Adjusted income from continuing operations | $1574 | $1555 | $1566 | $1500 | $1431 | $1421 | $1415 | $1312 |
| Add: adjusted noncontrolling interests from continuing operations | 36 | 39 | 41 | 40 | 34 | 35 | 38 | 43 |
| Add: adjusted interest expense - net | 39 | 26 | 14 | 19 | 41 | 18 | 33 | 38 |
| Less: tax benefit on interest expense - net \* | (9) | (7) | (3) | (5) | (10) | (5) | (8) | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Adjusted NOPAT** | $1640 | $1613 | $1618 | $1554 | $1496 | $1469 | $1478 | $1383 |
| 4-quarter trailing reported NOPAT | $4329 | $4021 | $3723 | $4198 | $4013 | $3765 | $3508 | $3115 |
| 4-quarter trailing adjusted NOPAT | $6425 | $6281 | $6137 | $5997 | $5826 | $5627 | $5389 | $4985 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 |
| (Millions of dollars) | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| **Equity and redeemable noncontrolling interests:** |  |  |  |  |  |  |  |  |
| Redeemable noncontrolling interests | $13 | $13 | $13 | $13 | $13 | $13 | $13 | $13 |
| Linde plc shareholders' equity | 40028 | 37628 | 39674 | 42963 | 44035 | 44323 | 45777 | 46210 |
| Noncontrolling interests | 1346 | 1298 | 1353 | 1414 | 1393 | 1401 | 1438 | 1410 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total equity and redeemable noncontrolling interests** | $41387 | $38939 | $41040 | $44390 | $45441 | $45737 | $47228 | $47633 |
| Reported capital | $53865 | $50521 | $53428 | $56382 | $56825 | $57763 | $59582 | $59283 |
| Total equity and redeemable noncontrolling interests | $41387 | $38939 | $41040 | $44390 | $45441 | $45737 | $47228 | $47633 |
| Add: Adjusted net debt less net assets held for sale | 12456 | 11554 | 12350 | 11942 | 11323 | 11954 | 12270 | 11552 |
| Less: Linde AG Goodwill (a) | 24256 | 24256 | 24256 | 24256 | 24256 | 24256 | 24256 | 24256 |
| Less: Linde AG Indefinite lived intangibles (a) | 1868 | 1868 | 1868 | 1868 | 1868 | 1868 | 1868 | 1868 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Adjusted capital** | $27719 | $24369 | $27266 | $30208 | $30640 | $31567 | $33374 | $33061 |
| (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. | (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. | (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. | (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. | (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. | (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. | (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. | (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. | (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. |
| Ending capital (see above) | $53865 | $50521 | $53428 | $56382 | $56825 | $57763 | $59582 | $59283 |
| 5-quarter average ending capital | $54204 | $54984 | $56796 | $57967 | $59086 | $59960 | $60502 | $60584 |
| Ending adjusted capital (see above) | $27719 | $24369 | $27266 | $30208 | $30640 | $31567 | $33374 | $33061 |
| 5-quarter average ending adjusted capital | $28040 | $28810 | $30611 | $31770 | $32875 | $33735 | $34261 | $34325 |
| &nbsp;&nbsp;&nbsp;&nbsp; **After-tax ROC (4 quarter reported NOPAT / 5-quarter average ending capital)** | 8.0% | 7.3% | 6.6% | 7.2% | 6.8% | 6.3% | 5.8% | 5.1% |
| &nbsp;&nbsp;&nbsp;&nbsp; **Adjusted after-tax ROC (4 quarter trailing adjusted NOPAT / 5-quarter average ending adjusted capital)** | 22.9% | 21.8% | 20.0% | 18.9% | 17.7% | 16.7% | 15.7% | 14.5% |
| \*Tax benefit on interest expense - net is generally presented using the reported effective rate. | \*Tax benefit on interest expense - net is generally presented using the reported effective rate. | \*Tax benefit on interest expense - net is generally presented using the reported effective rate. | \*Tax benefit on interest expense - net is generally presented using the reported effective rate. | \*Tax benefit on interest expense - net is generally presented using the reported effective rate. | \*Tax benefit on interest expense - net is generally presented using the reported effective rate. | \*Tax benefit on interest expense - net is generally presented using the reported effective rate. | \*Tax benefit on interest expense - net is generally presented using the reported effective rate. | \*Tax benefit on interest expense - net is generally presented using the reported effective rate. |

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