The consolidated financial statements of Linde AG for the year ended 31 December 2006 have been drawn up on the basis of § 315a of the German Commercial Code (HGB) in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. We have applied all the standards which are currently in force and, in addition, those set out in Note [7] which have been applied early.

The Linde Group is an international technology group operating worldwide, with two divisions – Gases and Engineering.

The reporting currency is the euro. All amounts are shown in millions of euro (€ million), unless stated otherwise.

Some items in the balance sheet and income statement have been combined under one heading to improve the clarity of presentation. Such items are disclosed and commented on individually in the Notes. The income statement has been prepared using the cost of sales method.

KPMG or other appointed auditors have either audited the financial statements which are included in the consolidated financial statements or have conducted an audit review of those financial statements. The annual financial statements of significant Group companies included in the consolidation are drawn up at the same balance sheet date as the annual financial statements of Linde AG.