Linde : Reports Third-Quarter 2022 Results Third-Quarter Highlights - Form 8-K

Linde Reports Third-Quarter 2022 Results

Third-Quarter Highlights

	➢	Sales $8.8 billion, up 15% versus prior-year quarter
	➢	Operating profit $1.6 billion; adjusted operating profit $2.0 billion, up 11%
	➢	Operating profit margin 18.3%; adjusted operating profit margin 22.8%, up 90 basis points ex. cost pass-through
	➢	EPS $2.54; adjusted EPS $3.10, up 14%
	➢	Operating cash flow of $2.6 billion, up 3% versus prior-year quarter and 24% sequentially
	➢	Increased full-year 2022 adjusted EPS guidance to $11.93 - $12.03, represents 12% to 13% growth year-over-year, 17% to 18% ex FX

Woking, UK, October 27, 2022 - Linde plc (NYSE: LIN; FWB: LIN) today reported third-quarter 2022 income from continuing operations of $1,273 million and diluted earnings per share of $2.54, up 30% and 35% respectively. Excluding Linde AG purchase accounting impacts and other charges, adjusted income from continuing operations was $1,555 million, up 9% versus prior year. Adjusted earnings per share was $3.10, 14% above prior year.

Linde's sales for the third quarter were $8,797 million, 15% above prior year. Compared to prior year, underlying sales increased 11%, including 8% price attainment and 3% higher volumes, with growth in all end markets except healthcare. Sequentially, underlying sales increased 3% with growth across all end markets driven by 2% higher price and 1% volume.

Third-quarter operating profit was $1,613 million. Adjusted operating profit of $2,010 million was up 11% versus prior year led by higher price, volumes and continued productivity initiatives across all segments. Excluding the effects of cost pass-through, adjusted operating margins expanded 90 basis points versus prior year.

Third-quarter operating cash flow of $2,636 million more than covered capital expenditures of $762 million resulting in free cash flow of $1,874 million. During the quarter, the company returned $1,728 million to shareholders through dividends and stock repurchases, net of issuances.

Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, "Linde employees delivered another strong quarter of financial results with EPS increasing 14% despite 7% currency headwinds. Furthermore, operating margins expanded 90 basis points when excluding cost pass-through - all underpinned by strong operating cash flow of $2.6 billion and record ROC of 21.8%. These results demonstrate, once again, Linde's resiliency and growth capabilities in any environment.

Lamba continued, "Irrespective of the macro-economic uncertainty, I have confidence in our business model and high-performance culture to continue creating shareholder value for years to come."

For the fourth quarter of 2022, Linde expects adjusted diluted earnings per share in the range of $2.80 to $2.90, up 1% to 5% versus prior-year quarter. This guidance includes an assumed currency headwind of 8% year-over-year and 2% sequentially.

For the full year 2022, the company expects adjusted diluted earnings per share to be in the range of $11.93 to $12.03, up 12% to 13% versus prior year or 17% to 18% excluding currency headwind. Full-year capital expenditures are expected to be in the range of $3.0 billion to $3.4 billion to support growth and maintenance requirements including the $3.7 billion contractual sale of gas project backlog.

Page 1/10

Third-Quarter 2022 Results by Segment

Americas sales of $3,694 million grew 20% versus prior-year quarter and 5% sequentially. Compared with third quarter 2021, underlying sales increased 13% driven by 6% higher pricing and 7% higher volume, with double-digit growth in all end markets except healthcare. Sequentially, underlying sales grew 4%, from 1% higher pricing and 3% volume. Operating profit of $974 million was 26.4% of sales, 140 basis points below prior year or 50 basis points higher when excluding the effects of cost pass-through.

APAC (Asia Pacific) sales of $1,660 million were 6% above prior year and up 1% sequentially. Compared to prior year, underlying sales grew 12% driven by 7% price attainment and 5% volume growth, with growth across all end markets except healthcare. Sequentially, underlying sales grew 6% with pricing up 2% and volume growing 4%. Operating profit of $429 million was 25.8% of sales, 140 basis points above prior year or 180 basis points higher when excluding the effects of cost pass-through.

EMEA (Europe, Middle East & Africa) sales of $2,125 million were up 11% versus prior year and down 1% sequentially. Compared with third-quarter 2021, underlying sales grew 11%, driven by 14% higher pricing and 3% lower volumes. Sales grew across all end markets except healthcare. Sequentially, underlying sales grew 1% driven by 4% higher pricing and 3% lower volumes. Operating profit of $465 million was 21.9% of sales, 300 basis points below prior year or 60 basis points higher when excluding the effects of cost pass-through.

Linde Engineering sales were $828 million, up 38% versus prior year, and operating profit was $150 million or 18.1% of sales. Order intake for the quarter was $1,001 million and third-party sale of plant backlog increased to $3.1 billion.

Earnings Call

A teleconference on Linde's third-quarter 2022 results is being held today at 09:00 am EDT.

Live conference call	US Toll-Free Dial-In Number: 1 888 204 4368 Germany Toll-Free Dial-In Number: 0800 589 4609 UK Toll-Free Dial-In Number: 0800 358 6377 Access code: 3278896
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 2021 sales of $31 billion (€26 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 & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. 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

Page 2/10

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 2022. 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.

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 3/10

Page 4 of 10

LINDE PLC AND SUBSIDIARIES

SUMMARY NON-GAAP RECONCILIATIONS

(UNAUDITED)

The following adjusted amounts are Non-GAAP measures and are intended to supplement investors' understanding of the company's financial statements by providing measures which investors, financial analysts and management use to help evaluate the company's operating performance. Items which the company does not believe to be indicative of ongoing business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. See the "NON GAAP MEASURES AND RECONCILIATIONS" starting on page 9 for additional details relating to the adjustments.

(Millions of dollars, except per share amounts)		Sales			Operating Profit			Income from Continuing Operations			Diluted EPS from Continuing Operations
Quarter Ended September 30		2022			2021			2022			2021			2022			2021			2022			2021
Reported GAAP Amounts		$	8,797			$	7,668			$	1,613			$	1,292			$	1,273			$	978			$	2.54			$	1.88
Other charges (a)			-				-				15				26				(11	)			58				(0.02	)			0.11
Pension settlement charges (b)			-				-				-				-				5				3				0.01				0.01
Purchase accounting impacts - Linde AG (c)			-				-				382				492				288				382				0.57				0.73
Total adjustments			-				-				397				518				282				443				0.56				0.85
Adjusted amounts		$	8,797			$	7,668			$	2,010			$	1,810			$	1,555			$	1,421			$	3.10			$	2.73

(Millions of dollars, except per share amounts)		Sales			Operating Profit			Income from Continuing Operations			Diluted EPS from Continuing Operations
Year to Date September 30		2022			2021			2022			2021			2022			2021			2022			2021
Reported GAAP Amounts		$	25,465			$	22,495			$	3,682			$	3,647			$	2,819			$	2,797			$	5.57			$	5.34
Russia-Ukraine conflict and other charges (a)			-				-				1,004				222				877				228				1.73				0.44
Pension settlement charges (b)			-				-				-				-				5				3				0.01				0.01
Purchase accounting impacts - Linde AG (c)			-				-				1,217				1,466				920				1,120				1.82				2.13
Total adjustments			-				-				2,221				1,688				1,802				1,351				3.56				2.58
Adjusted amounts		$	25,465			$	22,495			$	5,903			$	5,335			$	4,621			$	4,148			$	9.13			$	7.92

(a)	Third quarter 2022 charges include charges associated with the sale of the GIST business. 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 5 of 10

LINDE PLC AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

		Quarter Ended September 30,			Year To Date September 30,
(Millions of dollars, except per share data)		2022			2021			2022			2021
Sales		$	8,797			$	7,668			$	25,465			$	22,495
Cost of sales			5,285				4,368				15,023				12,616
Selling, general and administrative			770				793				2,343				2,402
Depreciation and amortization			1,045				1,163				3,248				3,500
Research and development			35				36				107				105
Russia-Ukraine conflict and other charges			15				26				1,004				222
Other income (expense) - net			(34	)			10				(58	)			(3	)
Operating Profit			1,613				1,292				3,682				3,647
Interest expense - net			18				8				32				46
Net pension and OPEB cost (benefit), excluding service cost			(53	)			(45	)			(179	)			(143	)
Income From Continuing Operations Before Income Taxes and Equity Investments			1,648				1,329				3,829				3,744
Income taxes			391				321				1,046				923
Income From Continuing Operations Before Equity Investments			1,257				1,008				2,783				2,821
Income from equity investments			43				1				137				81
Income From Continuing Operations (Including Noncontrolling Interests)			1,300				1,009				2,920				2,902
Add: income from discontinued operations, net of tax			-				1				-				3
Income (Including Noncontrolling Interests)			1,300				1,010				2,920				2,905
Less: noncontrolling interests from continuing operations			(27	)			(31	)			(101	)			(105	)
Net Income - Linde plc		$	1,273			$	979			$	2,819			$	2,800
Net Income - Linde plc
Income from continuing operations		$	1,273			$	978			$	2,819			$	2,797
Income from discontinued operations		$	-			$	1			$	-			$	3
Per Share Data - Linde plc Shareholders
Basic earnings per share from continuing operations		$	2.56			$	1.90			$	5.62			$	5.39
Basic earnings per share from discontinued operations			-				-				-				0.01
Basic earnings per share		$	2.56			$	1.90			$	5.62			$	5.40
Diluted earnings per share from continuing operations		$	2.54			$	1.88			$	5.57			$	5.34
Diluted earnings per share from discontinued operations			-				-				-				0.01
Diluted earnings per share		$	2.54			$	1.88			$	5.57			$	5.35
Cash dividends		$	1.17			$	1.06			$	3.51			$	3.18
Weighted Average Shares Outstanding (000's):
Basic shares outstanding (000's)			497,186				515,169				501,743				518,802
Diluted shares outstanding (000's)			501,151				520,079				506,012				523,662

Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP.

Page 6 of 10

LINDE PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(UNAUDITED)

		September 30,			December 31,
(Millions of dollars)		2022			2021
Assets
Cash and cash equivalents		$	3,756			$	2,823
Accounts receivable - net			4,599				4,499
Contract assets			104				134
Inventories			1,855				1,733
Prepaid and other current assets			889				970
Total Current Assets			11,203				10,159
Property, plant and equipment - net			22,586				26,003
Goodwill			24,565				27,038
Other intangibles - net			11,810				13,802
Other long-term assets			4,159				4,603
Total Assets		$	74,323			$	81,605
Liabilities and equity
Accounts payable		$	3,067			$	3,503
Short-term debt			3,179				1,163
Current portion of long-term debt			1,551				1,709
Contract liabilities			2,902				2,940
Other current liabilities			4,362				4,328
Total Current Liabilities			15,061				13,643
Long-term debt			10,608				11,335
Other long-term liabilities			9,715				11,186
Total Liabilities		$	35,384			$	36,164
Redeemable noncontrolling interests			13				13
Linde plc Shareholders' Equity
Ordinary shares			1				1
Additional paid-in capital			40,011				40,180
Retained earnings			19,845				18,710
Accumulated other comprehensive income (loss)			(8,094	)			(5,048	)
Less: Treasury shares, at cost			(14,135	)			(9,808	)
Total Linde plc shareholders' equity			37,628				44,035
Noncontrolling interests			1,298				1,393
Total Equity		$	38,926			$	45,428
Total Liabilities and Equity		$	74,323			$	81,605

Page 7 of 10

LINDE PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

		Quarter Ended September 30,			Year to Date September 30,
(Millions of dollars)		2022			2021			2022			2021
Operations
Net income - Linde plc		$	1,273			$	979			$	2,819			$	2,800
Less: income from discontinued operations, net of tax and noncontrolling interests			-				(1	)			-				(3	)
Add: noncontrolling interests			27				31				101				105
Net income (including noncontrolling interests)			1,300				1,009				2,920				2,902
Adjustments to reconcile net income to net cash provided by operating activities:
Russia-Ukraine conflict and other charges, net of payments (a)			(13	)			(12	)			909				83
Depreciation and amortization			1,045				1,163				3,248				3,500
Accounts receivable			(29	)			(151	)			(572	)			(539	)
Contract assets and liabilities, net			126				479				369				530
Inventory			(156	)			(35	)			(300	)			(77	)
Payables and accruals			306				92				376				131
Pension contributions			(25	)			(4	)			(44	)			(32	)
Deferred income taxes and other			82				15				(137	)			(6	)
Net cash provided by operating activities			2,636				2,556				6,769				6,492
Investing
Capital expenditures			(762	)			(741	)			(2,237	)			(2,247	)
Acquisitions, net of cash acquired			(61	)			-				(110	)			(31	)
Divestitures, net of cash divested and asset sales			123				70				140				147
Net cash provided by (used for) investing activities			(700	)			(671	)			(2,207	)			(2,131	)
Financing
Debt increase (decrease) - net			35				1,494				2,795				1,808
Issuances of ordinary shares			2				7				24				39
Purchases of ordinary shares			(1,149	)			(1,169	)			(4,478	)			(3,251	)
Cash dividends - Linde plc shareholders			(581	)			(546	)			(1,758	)			(1,648	)
Noncontrolling interest transactions and other			(27	)			(42	)			(62	)			(319	)
Net cash provided by (used for) financing activities			(1,720	)			(256	)			(3,479	)			(3,371	)
Effect of exchange rate changes on cash and cash equivalents			(115	)			(66	)			(150	)			(44	)
Change in cash and cash equivalents			101				1,563				933				946
Cash and cash equivalents, beginning-of-period			3,655				3,137				2,823				3,754
Cash and cash equivalents, end-of-period		$	3,756			$	4,700			$	3,756			$	4,700

(a) Russia-Ukraine conflict and other charges were $15 million and $26 million for the quarters ended September 30, 2022 and 2021, respectively, and $1,004 million and $222 million for the nine months ended September 30, 2022 and 2021, respectively. Related cash outflows were $28 million and $38 million for the quarters ended September 30, 2022 and 2021, respectively, and $95 million and $139 million for the nine months ended September 30, 2022 and 2021, respectively.

Page 8 of 10

LINDE PLC AND SUBSIDIARIES

SEGMENT INFORMATION

(UNAUDITED)

		Quarter Ended September 30,			Year to Date September 30,
(Millions of dollars)		2022			2021			2022			2021
Sales
Americas		$	3,694			$	3,091			$	10,453			$	8,951
EMEA			2,125				1,911				6,417				5,585
APAC			1,660				1,564				4,913				4,544
Engineering			828				601				2,200				1,921
Other			490				501				1,482				1,494
Total segment sales		$	8,797			$	7,668			$	25,465			$	22,495
Operating Profit
Americas		$	974			$	859			$	2,788			$	2,525
EMEA			465				476				1,504				1,414
APAC			429				382				1,254				1,122
Engineering			150				106				398				323
Other			(8	)			(13	)			(41	)			(49	)
Segment operating profit			2,010				1,810				5,903				5,335
Russia-Ukraine conflict and other charges			(15	)			(26	)			(1,004	)			(222	)
Purchase accounting impacts - Linde AG			(382	)			(492	)			(1,217	)			(1,466	)
Total operating profit		$	1,613			$	1,292			$	3,682			$	3,647

Page 9 of 10

LINDE PLC AND SUBSIDIARIES

APPENDIX

NON-GAAP MEASURES AND RECONCILIATIONS

(UNAUDITED)

The following Non-GAAP measures are intended to supplement investors' understanding of the company's financial information by providing measures which investors, financial analysts and management use to help evaluate the company's operating performance and liquidity. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures.

		2022			2021
(Millions of dollars)		Year to Date September 30,			Q3			Q2			Q1			Year to Date September 30,			Q4			Q3			Q2			Q1
Adjusted Operating Profit and Operating Margin
Reported operating profit		$	3,682			$	1,613			$	589			$	1,480			$	3,647			$	1,337			$	1,292			$	1,142			$	1,213
Add: Russia-Ukraine conflict and other charges (a)			1,004				15				993				(4	)			222				51				26				204				(8	)
Add: Purchase accounting impacts - Linde AG (c)			1,217				382				406				429				1,466				453				492				491				483
Total adjustments			2,221				397				1,399				425				1,688				504				518				695				475
Adjusted operating profit		$	5,903			$	2,010			$	1,988			$	1,905			$	5,335			$	1,841			$	1,810			$	1,837			$	1,688
Reported percentage change			1	%			25	%			(48	)%			22	%			59	%			30	%			33	%			93	%			65	%
Adjusted percentage change			11	%			11	%			8	%			13	%			28	%			14	%			19	%			39	%			25	%
Reported sales		$	25,465			$	8,797			$	8,457			$	8,211			$	22,495			$	8,298			$	7,668			$	7,584			$	7,243
Reported operating margin			14.5	%			18.3	%			7.0	%			18.0	%			16.2	%			16.1	%			16.8	%			15.1	%			16.7	%
Adjusted operating margin			23.2	%			22.8	%			23.5	%			23.2	%			23.7	%			22.2	%			23.6	%			24.2	%			23.3	%
Adjusted Depreciation and amortization
Reported depreciation and amortization		$	3,248			$	1,045			$	1,091			$	1,112			$	3,500			$	1,135			$	1,163			$	1,171			$	1,166
Less: Purchase accounting impacts - Linde AG (c)			(1,196	)			(377	)			(401	)			(418	)			(1,426	)			(437	)			(469	)			(479	)			(478	)
Adjusted depreciation and amortization		$	2,052			$	668			$	690			$	694			$	2,074			$	698			$	694			$	692			$	688
Adjusted Other Income (Expense) - net
Reported Other Income (Expense) - net		$	(58	)		$	(34	)		$	(36	)		$	12			$	(3	)		$	(23	)		$	10			$	(17	)		$	4
Add: Purchase accounting impacts - Linde AG (c)			(21	)			(5	)			(5	)			(11	)			(40	)			(16	)			(23	)			(12	)			(5	)
Adjusted Other Income (Expense) - net		$	(37	)		$	(29	)		$	(31	)		$	23			$	37			$	(7	)		$	33			$	(5	)		$	9
Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost
Reported net pension and OPEB cost (benefit), excluding service cost		$	(179	)		$	(53	)		$	(62	)		$	(64	)		$	(143	)		$	(49	)		$	(45	)		$	(49	)		$	(49	)
Add: Pension settlement charges			(6	)			(6	)			-				-				(4	)			-				(4	)			-				-
Adjusted Net Pension and OPEB cost (benefit), excluding service costs		$	(185	)		$	(59	)		$	(62	)		$	(64	)		$	(147	)		$	(49	)		$	(49	)		$	(49	)		$	(49	)
Adjusted Interest Expense - Net
Reported interest expense - net		$	32			$	18			$	5			$	9			$	46			$	31			$	8			$	18			$	20
Add: Purchase accounting impacts - Linde AG (c)			27				8				9				10				43				10				10				15				18
Adjusted interest expense - net		$	59			$	26			$	14			$	19			$	89			$	41			$	18			$	33			$	38

Page 9 of 10 (cont'd)

		2022			2021
(Millions of dollars)		Year to Date September 30,			Q3			Q2			Q1			Year to Date September 30,			Q4			Q3			Q2			Q1
Adjusted Income Taxes (a)
Reported income taxes		$	1,046			$	391			$	286			$	369			$	923			$	339			$	321			$	334			$	268
Add: Purchase accounting impacts - Linde AG (c)			308				92				108				108				349				103				115				116				118
Add: Pension settlement charges			1				1				-				-				1				-				1				-				-
Add: Russia-Ukraine conflict and other charges (a)			127				26				104				(3	)			29				-				3				6				20
Total adjustments			436				119				212				105				379				103				119				122				138
Adjusted income taxes		$	1,482			$	510			$	498			$	474			$	1,302			$	442			$	440			$	456			$	406
Adjusted Effective Tax Rate (a)
Reported income before income taxes and equity investments		$	3,829			$	1,648			$	646			$	1,535			$	3,744			$	1,355			$	1,329			$	1,173			$	1,242
Add: Pension settlement charge			6				6				-				-				4				-				4				-				-
Add: Purchase accounting impacts - Linde AG (c)			1,190				374				397				419				1,423				443				482				476				465
Add: Russia-Ukraine conflict and other charges (a)			1,004				15				993				(4	)			222				51				26				204				(8	)
Total adjustments			2,200				395				1,390				415				1,649				494				512				680				457
Adjusted income before income taxes and equity investments		$	6,029			$	2,043			$	2,036			$	1,950			$	5,393			$	1,849			$	1,841			$	1,853			$	1,699
Reported Income taxes		$	1,046			$	391			$	286			$	369			$	923			$	339			$	321			$	334			$	268
Reported effective tax rate			27.3	%			23.7	%			44.3	%			24.0	%			24.7	%			25.0	%			24.2	%			28.5	%			21.6	%
Adjusted income taxes		$	1,482			$	510			$	498			$	474			$	1,302			$	442			$	440			$	456			$	406
Adjusted effective tax rate			24.6	%			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		$	137			$	43			$	50			$	44			$	81			$	38			$	1			$	37			$	43
Add: Russia-Ukraine conflict and other charges (e)			-				-				-				-				35				-				35				-				-
Add: Purchase accounting impacts - Linde AG (c)			57				18				19				20				57				20				19				19				19
Total adjustments			57				18				19				20				92				20				54				19				19
Adjusted income from equity investments		$	194			$	61			$	69			$	64			$	173			$	58			$	55			$	56			$	62
Adjusted Noncontrolling Interests from Continuing Operations
Reported noncontrolling interests from continuing operations		$	(101	)		$	(27	)		$	(38	)		$	(36	)		$	(105	)		$	(30	)		$	(31	)		$	(36	)		$	(38	)
Add: Purchase accounting impacts - Linde AG (c)			(19	)			(12	)			(3	)			(4	)			(11	)			(4	)			(4	)			(2	)			(5	)
Adjusted noncontrolling interests from continuing operations		$	(120	)		$	(39	)		$	(41	)		$	(40	)		$	(116	)		$	(34	)		$	(35	)		$	(38	)		$	(43	)
Adjusted Income from Continuing Operations (b)
Reported income from continuing operations		$	2,819			$	1,273			$	372			$	1,174			$	2,797			$	1,024			$	978			$	840			$	979
Add: Pension settlement charge			5				5				-				-				3				-				3				-				-
Add: Russia-Ukraine conflict and other charges (a)			877				(11	)			889				(1	)			228				51				58				198				(28	)
Add: Purchase accounting impacts - Linde AG (c)			920				288				305				327				1,120				356				382				377				361
Total adjustments			1,802				282				1,194				326				1,351				407				443				575				333
Adjusted income from continuing operations		$	4,621			$	1,555			$	1,566			$	1,500			$	4,148			$	1,431			$	1,421			$	1,415			$	1,312

Page 9 of 10 (cont'd)

		2022			2021
(Millions of dollars, except per share data)		Year to Date September 30,			Q3			Q2			Q1			Year to Date September 30,			Q4			Q3			Q2			Q1
Adjusted Diluted EPS from Continuing Operations (b)
Reported diluted EPS from continuing operations		$	5.57			$	2.54			$	0.74			$	2.30			$	5.34			$	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)			1.73				(0.02	)			1.76				-				0.44				0.10				0.11				0.38				(0.05	)
Add: Purchase accounting impacts - Linde AG (c)			1.82				0.57				0.60				0.63				2.13				0.69				0.73				0.72				0.68
Total adjustments			3.56				0.56				2.36				0.63				2.58				0.79				0.85				1.10				0.63
Adjusted diluted EPS from continuing operations		$	9.13			$	3.10			$	3.10			$	2.93			$	7.92			$	2.77			$	2.73			$	2.70			$	2.49
Reported percentage change			4	%			35	%			(54	)%			24	%			64	%			37	%			42	%			84	%			74	%
Adjusted percentage change			15	%			14	%			15	%			18	%			34	%			20	%			27	%			42	%			32	%

						Fourth Quarter 2022			Full Year 2022
Adjusted Diluted EPS from Continuing Operations Guidance (d)						Low End			High End			Low End			High End
2022 Adjusted Guidance								$	2.80			$	2.90			$	11.93			$	12.03
Adjusted percentage changes versus 2021 adjusted diluted EPS									1	%			5	%			12	%			13	%
Add: Estimated currency headwind/(tailwind)									8	%			8	%			5	%			5	%
Adjusted percentage change excluding currency									9	%			13	%			17	%			18	%
Adjusted EBITDA and % of Sales
Income from continuing operations		$	2,819			$	1,273			$	372			$	1,174			$	2,797			$	1,024			$	978			$	840			$	979
Add: Noncontrolling interests related to continuing operations			101				27				38				36				105				30				31				36				38
Add: Net pension and OPEB cost (benefit), excluding service cost			(179	)			(53	)			(62	)			(64	)			(143	)			(49	)			(45	)			(49	)			(49	)
Add: Interest expense			32				18				5				9				46				31				8				18				20
Add: Income taxes			1,046				391				286				369				923				339				321				334				268
Add: Depreciation and amortization			3,248				1,045				1,091				1,112				3,500				1,135				1,163				1,171				1,166
EBITDA from continuing operations			7,067				2,701				1,730				2,636				7,228				2,510				2,456				2,350				2,422
Add: Russia-Ukraine conflict and other charges (a)			1,004				15				993				(4	)			257				51				61				204				(8	)
Add: Purchase accounting impacts - Linde AG (c)			77				23				23				31				97				36				42				31				24
Total adjustments			1,081				38				1,016				27				354				87				103				235				16
Adjusted EBITDA from continuing operations		$	8,148			$	2,739			$	2,746			$	2,663			$	7,582			$	2,597			$	2,559			$	2,585			$	2,438
Reported sales		$	25,465			$	8,797			$	8,457			$	8,211			$	22,495			$	8,298			$	7,668			$	7,584			$	7,243
% of sales
EBITDA from continuing operations			27.8	%			30.7	%			20.5	%			32.1	%			32.1	%			30.2	%			32.0	%			31.0	%			33.4	%
Adjusted EBITDA from continuing operations			32.0	%			31.1	%			32.5	%			32.4	%			33.7	%			31.3	%			33.4	%			34.1	%			33.7	%

(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".

Page 9 of 10 (cont'd)

(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 2022. 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 10 of 10

LINDE PLC AND SUBSIDIARIES

APPENDIX

NON-GAAP MEASURES AND RECONCILIATIONS

(UNAUDITED)

		2022			2021
(Millions of dollars)		Q3			Q2			Q1			Q4			Q3			Q2			Q1
Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evaluate the ability of a company to pursue opportunities that enhance shareholder value. FCF equals cash flow from operations less capital expenditures.
Operating Cash Flow		$	2,636			$	2,133			$	2,000			$	3,233			$	2,556			$	1,827			$	2,109
Less: Capital Expenditures			(762	)			(826	)			(649	)			(839	)			(741	)			(744	)			(762	)
Free Cash Flow		$	1,874			$	1,307			$	1,351			$	2,394			$	1,815			$	1,083			$	1,347
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		$	15,338			$	16,043			$	16,456			$	14,207			$	16,727			$	15,492			$	15,750
Less: Cash and cash equivalents			(3,756	)			(3,655	)			(4,464	)			(2,823	)			(4,700	)			(3,137	)			(4,096	)
Net debt			11,582				12,388				11,992				11,384				12,027				12,355				11,654
Less: Purchase accounting impacts - Linde AG			(28	)			(38	)			(50	)			(61	)			(72	)			(84	)			(98	)
Adjusted net debt			11,554				12,350				11,942				11,323				11,955				12,271				11,556
Less: Net assets held for sale			-				-				-				-				(1	)			(1	)			(4	)
Adjusted net debt less net assets held for sale		$	11,554			$	12,350			$	11,942			$	11,323			$	11,954			$	12,270			$	11,552
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		$	1,273			$	372			$	1,174			$	1,024			$	978			$	840			$	979
Add: noncontrolling interests from continuing operations			27				38				36				30				31				36				38
Add: interest expense - net			18				5				9				31				8				18				20
Less: tax benefit on interest expense - net *			(5	)			(1	)			(2	)			(8	)			(2	)			(5	)			(5	)
Reported NOPAT		$	1,313			$	414			$	1,217			$	1,077			$	1,015			$	889			$	1,032
Adjusted income from continuing operations		$	1,555			$	1,566			$	1,500			$	1,431			$	1,421			$	1,415			$	1,312
Add: adjusted noncontrolling interests from continuing operations			39				41				40				34				35				38				43
Add: adjusted interest expense - net			26				14				19				41				18				33				38
Less: tax benefit on interest expense - net *			(7	)			(3	)			(5	)			(10	)			(5	)			(8	)			(10	)
Adjusted NOPAT		$	1,613			$	1,618			$	1,554			$	1,496			$	1,469			$	1,478			$	1,383
4-quarter trailing reported NOPAT		$	4,021			$	3,723			$	4,198			$	4,013			$	3,765			$	3,508			$	3,115
4-quarter trailing adjusted NOPAT		$	6,281			$	6,137			$	5,997			$	5,826			$	5,627			$	5,389			$	4,985

Page 10 of 10 (cont'd)

		2022			2021
(Millions of dollars)		Q3			Q2			Q1			Q4			Q3			Q2			Q1
Equity and redeemable noncontrolling interests:
Redeemable noncontrolling interests		$	13			$	13			$	13			$	13			$	13			$	13			$	13
Linde plc shareholders' equity			37,628				39,674				42,963				44,035				44,323				45,777				46,210
Noncontrolling interests			1,298				1,353				1,414				1,393				1,401				1,438				1,410
Total equity and redeemable noncontrolling interests		$	38,939			$	41,040			$	44,390			$	45,441			$	45,737			$	47,228			$	47,633
Reported capital		$	50,521			$	53,428			$	56,382			$	56,825			$	57,763			$	59,582			$	59,283
Total equity and redeemable noncontrolling interests		$	38,939			$	41,040			$	44,390			$	45,441			$	45,737			$	47,228			$	47,633
Add: Adjusted net debt less net assets held for sale			11,554				12,350				11,942				11,323				11,954				12,270				11,552
Less: Linde AG Goodwill (a)			24,256				24,256				24,256				24,256				24,256				24,256				24,256
Less: Linde AG Indefinite lived intangibles (a)			1,868				1,868				1,868				1,868				1,868				1,868				1,868
Adjusted capital		$	24,369			$	27,266			$	30,208			$	30,640			$	31,567			$	33,374			$	33,061
(a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger.
Ending capital (see above)		$	50,521			$	53,428			$	56,382			$	56,825			$	57,763			$	59,582			$	59,283
5-quarter average ending capital		$	54,984			$	56,796			$	57,967			$	59,086			$	59,960			$	60,502			$	60,584
Ending adjusted capital (see above)		$	24,369			$	27,266			$	30,208			$	30,640			$	31,567			$	33,374			$	33,061
5-quarter average ending adjusted capital		$	28,810			$	30,611			$	31,770			$	32,875			$	33,735			$	34,261			$	34,325
After-tax ROC (4 quarter reported NOPAT / 5-quarter average ending capital)			7.3	%			6.6	%			7.2	%			6.8	%			6.3	%			5.8	%			5.1	%
Adjusted after-tax ROC (4 quarter trailing adjusted NOPAT / 5-quarter average ending adjusted capital)			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.