The consolidated financial statements of Linde AG for the year ended 31 December 2007 have been drawn up in accordance with International Financial Reporting Standards as adopted by the European Union and in accordance with the additional requirements of § 315a(1) of the German Commercial Code (HGB). All the Standards which are currently in force have been applied 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.

The income statement has been prepared using the cost of sales method. The presentation of the income statement has been adjusted from that given in 2006, with discontinued operations no longer disclosed in a separate column, but in a separate line below the figure for earnings after taxes on income from continuing operations.

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 companies included in the consolidation are drawn up at the same balance sheet date as the annual financial statements of Linde AG.