The condensed Group interim financial statements of Linde AG for the nine months ended 30 September 2007 have been drawn up in accordance with the International Financial Reporting Standards (IFRS) applicable to interim financial reporting, as adopted by the European Union.

A review of the financial statements included in the condensed Group interim financial statements has been performed by KPMG Deutsche Treuhand-Gesellschaft or by other appointed auditors.

We have used the same accounting policies in the condensed Group interim financial statements as those used to prepare the Group financial statements for the year ended 31 December 2006, with the exception of the following changes, and have also applied IAS 34 "Interim Financial Reporting".

As already reported, at 31 December 2006, the classification of financing costs in relation to pension provisions was adjusted in line with IAS 19. As a result of the acquisition of BOC and the disposal of the KION Group, a major part of the pension obligations will be financed by externally managed assets from the 2006 financial year, which is intended to reduce the financing costs of these obligations. Until then, the interest cost in the pension provisions and the expected return on plan assets were recognised in functional costs. For the year ended 31 December 2006, the financing costs were included in the financial result for the first time, as they arise from the way in which pension obligations are financed. The new method of disclosure ensures that the information about the impact of the pension obligations and their movements on the results of operations is more useful for decision-making. Because of this change in accounting policy, the disclosure in the prior year period for the nine months to 30 September 2006 has been adjusted ("adjusted").

The application of the following Standards is mandatory from 1 January 2007: "Financial Instruments: Disclosures", Amendment to IAS 1 "Presentation of Financial Statements: Capital Disclosures" and Revised Guidance on Implementing IFRS 4 "Insurance Contracts". These Standards have no impact on the presentation of the net assets, financial position and results of operations of The Linde Group, but will result in changes in the information which is required to be disclosed in the Group financial statements for the year ended 31 December 2007 or to more information being given.

In addition to the Standards mentioned above, the following new or revised Standards and Interpretations have been issued by the IASB and IFRIC. These have not been applied in the condensed Group interim financial statements for the nine months to 30 September 2007, as they are either not yet mandatory or have not yet been adopted by the European Commission.

• Revised IAS 1 "Presentation of Financial Statements"
• IFRS 8 "Operating Segments"
• IFRIC 11 "IFRS 2 – Group and Treasury Share Transactions"
• IFRIC 12 "Service Concession Arrangements"
• IFRIC 13 "Customer Loyalty Programmes"
• IFRIC 14 "The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction"