Capital expenditure of The Linde Group

The capital expenditure decision-making and allocation process is centralised in The Linde Group. Every item of capital expenditure which exceeds specific size criteria must be approved by the member of the Executive Board responsible for that area, by a central investment committee or by the full Executive Board. Capital expenditure decisions are carefully reviewed, as they are a critical success factor for a project-based, investment-focused company such as Linde.

In 2015, Linde continued to apply its growth-based capital expenditure strategy. The Group has again invested specifically in those areas in which opportunities exist for above-average growth and which contribute towards increasing the profitability and competitiveness of the Group. During the reporting period, Linde’s investment activity focused not only on the on-site product area, but also particularly on the liquefied gases and cylinder gas product areas.

Investment in tangible and intangible assets in the 2015 financial year (excluding financial assets) totalled EUR 1.936 bn (2014: EUR 1.954 bn). The investment ratio was 10.8 percent of Group revenue (2014: 11.5 percent).

Most of the Group’s capital expenditure (EUR 1.881 bn; 2014: EUR 1.890 bn) was once again incurred for the global expansion of its gases business. This means that capital expenditure was down slightly on the forecast for the 2015 financial year, which expected to see capital expenditure roughly on a par with the previous year. The investment ratio in the Gases Division in 2015 was 12.4 percent of revenue (2014: 13.5 percent).

In addition, Linde continued to strengthen its good competitive position in the international market by spending a total of EUR 120 m on acquisitions and investments in financial assets (2014: EUR 95 m). Investments in consolidated companies during the 2015 financial year totalled EUR 107 m (2014: EUR 67 m).

The remaining investment in financial assets of EUR 13 m (2014: EUR 28 m) related mainly to capital increases in joint ventures or non-current loans to associates and joint ventures. If these investments are included, total capital expenditure in the 2015 financial year was EUR 2.056 bn (2014: EUR 2.049 bn).

 (XLS:) Download

Capital expenditure by division

 

 

 

 

 

in EUR m

 

2015

 

2014

1

Including consolidations.

Gases Division

 

1,881

 

1,890

Engineering Division

 

32

 

41

Other Activities1

 

23

 

23

Group (excluding financial assets)

 

1,936

 

1,954

Financial assets

 

120

 

95

Group

 

2,056

 

2,049

 (XLS:) Download

Capital expenditure of the Gases Division by reportable segment (excluding financial assets)

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

 

in EUR m

 

in percent

 

in EUR m

 

in percent

EMEA

 

895

 

47.6

 

946

 

50.1

Asia/Pacific

 

386

 

20.5

 

413

 

21.9

Americas

 

600

 

31.9

 

531

 

28.0

Gases Division

 

1,881

 

100.0

 

1,890

 

100.0