Fourth Quarter 2023 Earnings Report slide image

Fourth Quarter 2023 Earnings Report

Non-GAAP Measures, continued LINDE PLC AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES AND RECONCILIATIONS (Millions of dollars) (UNAUDITED) Linde (Millions of dollars) Q4 2023 Q3 Q2 Q1 Q4 Q3 2022 Q1 Q2 Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evaluate the ability of a company to pursue opportunities that enhance shareholder value. FCF equals cash flow from operations less capital expenditures. Operating Cash Flow Less: Capital Expenditures Free Cash Flow $ $ 2,727 $ (1,151) 1,576 $ 2,520 $ (948) 2,150 $ (859) 1,908 $ (829) 2,095 $ (936) 2,636 $ (762) 2,133 $ (826) 2,000 (649) 1,572 $ 1,291 $ 1,079 $ 1,159 $ 1,874 $ 1,307 $ 1,351 Net Debt - Net debt is a financial liquidity metric used by investors, financial analysts and management to evaluate the ability of a company to repay its debt and is calculated as total debt (excluding purchase accounting impacts) less liquid assets. Debt $ 19,373 $ 18,003 $ Less: Cash and cash equivalents (4,664) Net debt 14,709 (3,894) 14,109 17,490 $ (3,357) 14,133 18,777 $ (4,962) 13,815 17,914 $ (5,436) 12,478 15,338 $ 16,043 $ 16,456 (3,756) (3,655) 11,582 12,388 Less: Purchase accounting impacts - Linde AG Adjusted net debt $ (7) 14,702 $ (8) 14,101 $ (10) 14,123 $ (13) 13,802 $ (22) 12,456 $ (28) 11,554 $ (38) 12,350 $ (4,464) 11,992 (50) 11,942 Less: Net assets held for sale Adjusted net debt $ 14,702 $ 14,101 $ 14,123 $ 13,802 $ 12,456 $ 11,554 $ 12,350 $ 11,942 After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC) - After-tax return on capital is a measure used by investors, financial analysts and management to evaluate the return on net assets employed in the business. ROC measures the after-tax operating profit that the company was able to generate with the investments made by all parties in the business (debt, noncontrolling interests and Linde plc shareholders' equity). 30
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