Group

The economic environment is currently characterised by signals of a decline in global economic growth. However, there is no sign at present that this might have an adverse impact on Linde in the long term. There are a number of key reasons for this. Our very good market positioning, our broad, stable customer base and our global orientation ensure that we are able to cushion the impact of unfavourable economic conditions over a certain period. It is also fair to assume that the growth markets, in which we benefit from an excellent market position, will be much less affected by the downturn in the economy in North America and the eurozone. Our order books in the Engineering Division are well-filled and orders are continuing to be processed on schedule.

We therefore reconfirm our short-term and medium-term targets and continue to assume that Group sales will increase in the 2008 financial year and that earnings will rise at a faster rate than sales. In 2010, we expect to achieve operating profit of more than three billion euro and a return on capital employed (ROCE) of at least 13 percent. We will also benefit from the synergies arising from the acquisition of BOC. We will be able to achieve the cost synergies previously announced of EUR 250 m per annum as planned in full for the first time from the year 2009.