Exhibit 99.1

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Praxair Reports Third-Quarter 2018 Results

Financial Highlights

•

Sales $3.0 billion, up 3% above prior-year quarter, includes -4% FX headwind

•

Operating profit $0.7 billion, 6% above prior-year quarter, adjusted operating profit 8% higher

•

EPS $1.58, up 9% versus prior-year quarter, adjusted EPS $1.69, 13% above prior-year quarter

•

Strong operating cash flow of $0.9 billion, 29% of sales

•

Return on Capital 11.3%, Adjusted Return on Capital 14.1%

•

Backlog $2.2 billion, up $0.5 billion sequentially

- Won four new onsite projects, three in the U.S.

The third quarter earnings presentation can be found at: www.praxair.com/investor-relations.

# # #

>> About Praxair

Praxair, Inc., a wholly-owned subsidiary of Linde plc, is a leading industrial gas company in North and South America and one of the largest worldwide. With market capitalization of approximately $40 billion and 2017 sales of $11 billion, the company employs over 26,000 people globally and has been named to the Dow Jones^® World Sustainability Index for 16 consecutive years. Praxair produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Our products, services and technologies are making our planet more productive by bringing efficiency and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, primary metals and many others. For more information about the company, please visit our website at www.praxair.com.

This document is only controlled while on the Praxair, Inc. website and a copy of this controlled version is available for download. Praxair cannot assure the integrity or accuracy of any version of this document after it has been downloaded or removed from our website.

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Page 2 of 8

PRAXAIR, INC. AND SUBSIDIARIES

SUMMARY NON-GAAP RECONCILIATIONS

(UNAUDITED)

The following adjusted amounts are Non-GAAP measures and are intended to supplement investors’ understanding of the company’s financial statements by providing measures which investors, financial analysts and management use to help evaluate the company’s operating performance. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. See the Non-GAAP reconciliations starting on page 8 for additional details relating to the Non-GAAP adjustments.

(Millions of dollars, except per share amounts)


	Sales				Operating Profit				Net Income - Praxair, Inc.				Diluted EPS
	2018		2017		2018		2017 (d)		2018		2017		2018		2017
Quarter Ended September 30
Reported GAAP Amounts	$	3,024	$	2,922	$	669	$	632	$	461	$	419	$	1.58	$	1.45
Transaction costs (a)		—		—		21		14		19		13		0.07		0.05
Argentina currency devaluation (b)		—		—		10		—		10		—		0.03		—
Pension settlement charges (c)		—		—		—		—		3		1		0.01		—

Total adjustments		—		—		31		14		32		14		0.11		0.05

Adjusted amounts	$	3,024	$	2,922	$	700	$	646	$	493	$	433	$	1.69	$	1.50

Year To Date September 30
Reported GAAP Amounts	$	9,084	$	8,484	$	2,011	$	1,805	$	1,403	$	1,214	$	4.82	$	4.21
Transaction costs (a)		—		—		64		35		58		34		0.20		0.12
Argentina currency devaluation (b)		—		—		10		—		10		—		0.03		—
Pension settlement charges (c)		—		—		—		—		3		1		0.01		—

Total adjustments		—		—		74		35		71		35		0.24		0.12

Adjusted amounts	$	9,084	$	8,484	$	2,085	$	1,840	$	1,474	$	1,249	$	5.06	$	4.33

(a)	Charges primarily for transaction costs related to the Linde merger which closed on October 31, 2018.

(b)	Effective July 1, 2018, Argentina was deemed a highly inflationary economy. As a result, the third quarter of 2018 includes after-tax charges of $10 million ($0.03 per diluted share) associated with the transition to hyper-inflationary accounting for Argentina.

(c)	Pension settlement charges were recorded in the third quarter of 2018 related to lump sum benefit payments made from the U.S. supplemental pension plan and in the third quarter of 2017 related to lump sum benefit payments made from an international pension plan.

(d)

During the first quarter 2018, Praxair adopted accounting guidance on the presentation of net periodic pension and postretirement benefit costs which requires non-service related costs be presented outside of operating profit. As a result, non-service related pension and postretirement benefit costs are now presented in the consolidated statements of income in “Net pension and OPEB cost (benefit), excluding service cost.” Prior period information, including segment operating profit, has been reclassified to conform with current year presentation. The adoption of this guidance did not impact “Net Income - Praxair, Inc.”

Page 3 of 8

PRAXAIR, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Millions of dollars, except per share data)

(UNAUDITED)


	Quarter Ended September 30,						Year to Date September 30,
	2018			2017			2018			2017
SALES	$	3,024		$	2,922		$	9,084		$	8,484
Cost of sales		1,714			1,652			5,114			4,800
Selling, general and administrative		294			300			911			895
Depreciation and amortization		306			298			928			877
Research and development		23			23			71			69
Transaction costs and other charges		31			14			74			35
Other income (expense) - net		13			(3	)		25			(3	)

OPERATING PROFIT		669			632			2,011			1,805
Interest expense - net		40			41			130			120
Net pension and OPEB cost (benefit), excluding service cost		6			6			10			(7	)

INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS		623			585			1,871			1,692
Income taxes		156			162			462			468

INCOME BEFORE EQUITY INVESTMENTS		467			423			1,409			1,224
Income from equity investments		13			12			42			35

NET INCOME (INCLUDING NONCONTROLLING INTERESTS)		480			435			1,451			1,259
Less: noncontrolling interests		(19	)		(16	)		(48	)		(45	)

NET INCOME - PRAXAIR, INC.	$	461		$	419		$	1,403		$	1,214

PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
Basic earnings per share	$	1.60		$	1.46		$	4.87		$	4.24
Diluted earnings per share	$	1.58		$	1.45		$	4.82		$	4.21
Cash dividends	$	0.825		$	0.7875		$	2.475		$	2.36
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic shares outstanding (000’s)		288,093			286,467			287,800			286,022
Diluted shares outstanding (000’s)		291,513			289,216			291,275			288,524

Note: See page 2 for a reconciliation to adjusted amounts which are Non-GAAP.

Page 4 of 8

PRAXAIR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Millions of dollars)

(UNAUDITED)


	September 30, 2018			December 31, 2017
ASSETS
Cash and cash equivalents	$	600		$	617
Accounts receivable - net		1,852			1,804
Inventories		622			614
Prepaid and other current assets		231			250

TOTAL CURRENT ASSETS		3,305			3,285
Property, plant and equipment - net		11,725			12,057
Goodwill		3,201			3,233
Other intangibles - net		513			553
Other long-term assets		1,235			1,308

TOTAL ASSETS	$	19,979		$	20,436

LIABILITIES AND EQUITY
Accounts payable	$	978		$	972
Short-term debt		115			238
Current portion of long-term debt		1,582			979
Other current liabilities		1,185			1,118

TOTAL CURRENT LIABILITIES		3,860			3,307
Long-term debt		6,615			7,783
Other long-term liabilities		2,754			2,824

TOTAL LIABILITIES		13,229			13,914
REDEEMABLE NONCONTROLLING INTERESTS		15			11
PRAXAIR, INC. SHAREHOLDERS’ EQUITY:
Common stock		4			4
Additional paid-in capital		4,088			4,084
Retained earnings		13,913			13,224
Accumulated other comprehensive income (loss)		(4,656	)		(4,098	)
Less: Treasury stock, at cost		(7,117	)		(7,196	)

Total Praxair, Inc. Shareholders’ Equity		6,232			6,018
Noncontrolling interests		503			493

TOTAL EQUITY		6,735			6,511

TOTAL LIABILITIES AND EQUITY	$	19,979		$	20,436

Page 5 of 8

PRAXAIR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions of dollars)

(UNAUDITED)


	Quarter Ended September 30,						Year to Date September 30,
	2018			2017			2018			2017
OPERATIONS
Net income - Praxair, Inc.	$	461		$	419		$	1,403		$	1,214
Noncontrolling interests		19			16			48			45

Net income (including noncontrolling interests)		480			435			1,451			1,259
Adjustments to reconcile net income to net cash provided by operating activities:
Transaction costs and other charges, net of payments		20			10			35			27
Depreciation and amortization		306			298			928			877
Accounts Receivable		26			12			(121	)		(83	)
Inventory		(19	)		(6	)		(29	)		(11	)
Payables and accruals		107			35			101			11
Pension contributions		(7	)		(8	)		(17	)		(14	)
Deferred income taxes and other		(42	)		18			1			139

Net cash provided by operating activities		871			794			2,349			2,205

INVESTING
Capital expenditures		(380	)		(320	)		(1,056	)		(972	)
Acquisitions, net of cash acquired		(6	)		(16	)		(6	)		(18	)
Divestitures and asset sales		8			5			77			22

Net cash used for investing activities		(378	)		(331	)		(985	)		(968	)

FINANCING
Debt increase (decrease) - net		(133	)		(197	)		(625	)		(502	)
Issuances of common stock		26			20			70			90
Purchases of common stock		(1	)		—			(2	)		(11	)
Cash dividends - Praxair, Inc. shareholders		(238	)		(225	)		(712	)		(675	)
Noncontrolling interest transactions and other		(11	)		(1	)		(33	)		(85	)

Net cash provided by (used for) financing activities		(357	)		(403	)		(1,302	)		(1,183	)
Effect of exchange rate changes on cash and cash equivalents		(15	)		12			(79	)		29

Change in cash and cash equivalents		121			72			(17	)		83
Cash and cash equivalents, beginning-of-period		479			535			617			524

Cash and cash equivalents, end-of-period	$	600		$	607		$	600		$	607

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PRAXAIR, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Millions of dollars)

(UNAUDITED)


	Quarter Ended September 30,						Year to Date September 30,
	2018			2017			2018			2017
SALES
North America	$	1,613		$	1,518		$	4,770		$	4,481
Europe		425			407			1,297			1,146
South America		329			389			1,043			1,131
Asia		487			451			1,465			1,268
Surface Technologies		170			157			509			458

Consolidated sales	$	3,024		$	2,922		$	9,084		$	8,484

OPERATING PROFIT
North America	$	420		$	386		$	1,258		$	1,121
Europe		81			79			248			220
South America		57			66			167			178
Asia		110			88			321			243
Surface Technologies		32			27			91			78

Segment operating profit	$	700		$	646		$	2,085		$	1,840
Transaction costs and other charges		(31	)		(14	)		(74	)		(35	)

Total operating profit	$	669		$	632		$	2,011		$	1,805

Page 7 of 8

PRAXAIR, INC. AND SUBSIDIARIES

QUARTERLY FINANCIAL SUMMARY

(Millions of dollars, except per share data)

(UNAUDITED)


	2018 (b)									2017 (c, d)
	Q3			Q2			Q1			Q4			Q3			Q2			Q1
FROM THE INCOME STATEMENT
Sales	$	3,024		$	3,061		$	2,999		$	2,953		$	2,922		$	2,834		$	2,728
Cost of sales		1,714			1,723			1,677			1,661			1,652			1,599			1,549
Selling, general and administrative		294			307			310			312			300			305			290
Depreciation and amortization		306			311			311			307			298			292			287
Research and development		23			24			24			24			23			23			23
Transaction costs and other charges		31			24			19			17			14			15			6
Other income (expense) - net		13			17			(5	)		7			(3	)		6			(6	)

Operating profit		669			689			653			639			632			606			567
Interest expense - net		40			44			46			41			41			38			41
Net pension and OPEB cost (benefit), excluding service cost		6			2			2			3			6			2			(15	)
Income taxes		156			158			148			558			162			157			149
Income from equity investments		13			14			15			12			12			11			12

Net income (including noncontrolling interests)		480			499			472			49			435			420			404
Less: noncontrolling interests		(19	)		(19	)		(10	)		(16	)		(16	)		(14	)		(15	)

Net income - Praxair, Inc.	$	461		$	480		$	462		$	33		$	419		$	406		$	389

PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
Diluted earnings per share	$	1.58		$	1.65		$	1.59		$	0.11		$	1.45		$	1.41		$	1.35
Cash dividends per share	$	0.8250		$	0.8250		$	0.8250		$	0.7875		$	0.7875		$	0.7875		$	0.7875
Diluted weighted average shares outstanding (000’s)		291,513			290,908			290,809			290,456			289,216			288,535			287,384
ADJUSTED AMOUNTS (a)
Operating profit	$	700		$	713		$	672		$	656		$	646		$	621		$	573
Operating margin		23.1	%		23.3	%		22.4	%		22.2	%		22.1	%		21.9	%		21.0	%
Net Income	$	493		$	501		$	480		$	441		$	433		$	421		$	395
Diluted earnings per share	$	1.69		$	1.72		$	1.65		$	1.52		$	1.50		$	1.46		$	1.37
FROM THE BALANCE SHEET
Net debt (a)	$	7,712		$	7,979		$	8,297		$	8,383		$	8,630		$	8,832		$	8,849
Capital (a)	$	14,462		$	14,521		$	15,194		$	14,905		$	15,372		$	15,102		$	14,824
FROM THE STATEMENT OF CASH FLOWS
Cash flow from operations	$	871		$	790		$	688		$	836		$	794		$	701		$	710
Cash flow provided by (used for) investing activities		(378	)		(289	)		(318	)		(346	)		(331	)		(313	)		(324	)
Cash flow provided by (used for) financing activities		(357	)		(516	)		(429	)		(473	)		(403	)		(384	)		(396	)
Capital expenditures		380			351			325			339			320			325			327
Acquisitions		6			—			—			15			16			1			1
Cash dividends		238			237			237			226			225			225			225
OTHER INFORMATION
After-tax return on capital (ROC) (a)		11.3	%		10.5	%		9.9	%		9.5	%		12.0	%		11.5	%		11.5	%
Adjusted after-tax ROC (a)		14.1	%		13.6	%		13.0	%		12.5	%		12.3	%		12.1	%		12.0	%
EBITDA (a)	$	988		$	1,014		$	979		$	958		$	942		$	909		$	866
EBITDA margin (a)		32.7	%		33.1	%		32.6	%		32.4	%		32.2	%		32.1	%		31.7	%
Adjusted EBITDA (a)	$	1,019		$	1,038		$	998		$	975		$	956		$	924		$	872
Adjusted EBITDA margin (a)		33.7	%		33.9	%		33.3	%		33.0	%		32.7	%		32.6	%		32.0	%
Number of employees		26,714			26,658			26,550			26,461			26,531			26,487			26,420
SEGMENT DATA
SALES
North America	$	1,613		$	1,594		$	1,563		$	1,542		$	1,518		$	1,505		$	1,458
Europe		425			444			428			412			407			383			356
South America		329			349			365			370			389			373			369
Asia		487			502			476			470			451			422			395
Surface Technologies		170			172			167			159			157			151			150

Total sales	$	3,024		$	3,061		$	2,999		$	2,953		$	2,922		$	2,834		$	2,728

OPERATING PROFIT
North America	$	420		$	432		$	406		$	396		$	386		$	378		$	357
Europe		81			87			80			81			79			74			67
South America		57			56			54			61			66			64			48
Asia		110			107			104			90			88			80			75
Surface Technologies		32			31			28			28			27			25			26

Segment operating profit		700			713			672			656			646			621			573
Transaction costs and other charges		(31	)		(24	)		(19	)		(17	)		(14	)		(15	)		(6	)

Total operating profit	$	669		$	689		$	653		$	639		$	632		$	606		$	567

(a)	Non-GAAP measure, see Appendix.

(b)

2018 includes (i) after-tax charges of $19 million ($0.07 per diluted share) in the third quarter for transaction costs related to the Linde merger, (ii) a pension settlement charge of $4 million ($3 million after-tax or $0.01 per diluted share) in the third quarter, (iii) after-tax charges of $10 million ($0.03 per diluted share) in the third quarter related the transition to hyper-inflationary accounting in Argentina, (iv) after-tax charges of $21 million ($0.07 per diluted share) in the second quarter primarily for transaction costs related to the Linde merger, and (v) a charge of $18 million after-tax and noncontrolling interests ($0.06 per diluted share) in the first quarter primarily for transaction costs related to the Linde merger.

(c)

2017 includes (i) after-tax charges of $6 million ($0.02 per diluted share), $15 million ($0.05 per diluted share), $13 million ($0.05 per diluted share), and $14 million ($0.05 per diluted share) in the first, second, third, and fourth quarters, respectively for transaction costs related to the Linde merger, (ii) a pension settlement charge of $2 million ($1 million after-tax) in the third quarter related to lump sum benefit payments made from an international pension plan, and (iii) income tax charges, net of $394 million ($1.36 per diluted share) in the fourth quarter due to U.S. tax reform.

(d)	As a result of the adoption of new accounting guidance on the presentation of net periodic pension and postretirement benefit costs, prior period information has been reclassified to conform with current year presentation.

Page 8 of 8

PRAXAIR, INC. AND SUBSIDIARIES

APPENDIX

NON-GAAP MEASURES

(Millions of dollars, except per share data)

(UNAUDITED)

The following Non-GAAP measures are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and management use to help evaluate the company’s financial leverage, return on capital and operating performance. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. Adjusted amounts exclude the impacts of the 2018 transaction costs and other charges, 2018 third quarter Argentina hyper-inflationary impact, 2018 third quarter pension settlement, 2017 transaction costs and other charges, 2017 third quarter pension settlement, 2017 fourth quarter U.S. tax reform, 2016 third quarter cost reduction program and pension settlement, and 2016 first quarter bond redemption.

Adjusted Amounts


	Year-to-date September 30,			Third Quarter			Second Quarter			First Quarter			Year			Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Year			Third Quarter			First Quarter
	2018			2018			2018			2018			2017			2017			2017			2017			2017			2016			2016			2016
Adjusted Operating Profit and Operating Profit Margin
Reported operating profit	$	2,011		$	669		$	689		$	653		$	2,444		$	639		$	632		$	606		$	567		$	2,247		$	505		$	554
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			—			—			96			96			—
Add: Argentina currency devaluation		10			10			—			—			—			—			—			—			—			—			—			—
Add: Transaction costs		64			21			24			19			52			17			14			15			6			—			—			—

Total adjustments		74			31			24			19			52			17			14			15			6			96			96			—

Adjusted operating profit	$	2,085		$	700		$	713		$	672		$	2,496		$	656		$	646		$	621		$	573		$	2,343		$	601		$	554

Reported percentage change		11	%		6	%
Adjusted percentage change		13	%		8	%
Reported sales	$	9,084		$	3,024		$	3,061		$	2,999		$	11,437		$	2,953		$	2,922		$	2,834		$	2,728		$	10,534		$	2,716		$	2,509
Adjusted operating profit margin		23.0	%		23.1	%		23.3	%		22.4	%		21.8	%		22.2	%		22.1	%		21.9	%		21.0	%		22.2	%		22.1	%		22.1	%
Adjusted Interest Expense - net
Reported interest expense - net	$	130		$	40		$	44		$	46		$	161		$	41		$	41		$	38		$	41		$	190		$	43		$	65
Less: Bond redemption		—			—			—			—			—			—			—			—			—			(16	)		—			(16	)

Adjusted interest expense - net	$	130		$	40		$	44		$	46		$	161		$	41		$	41		$	38		$	41		$	174		$	43		$	49

Adjusted Net Pension and OPEB cost (benefit), excluding service cost
Reported net pension and OPEB cost (benefit), excluding service cost	$	10		$	6		$	2		$	2		$	(4	)	$	3		$	6		$	2		$	(15	)		9			8			—
Less: Pension settlement charge		(4	)		(4	)		—			—			(2	)		—			(2	)		—			—			(4	)		(4	)		—

Adjusted net Pension and OPEB cost (benefit), excluding service cost	$	6		$	2		$	2		$	2		$	(6	)	$	3		$	4		$	2		$	(15	)	$	5		$	4		$	—

Adjusted Income Taxes
Reported income taxes	$	462		$	156		$	158		$	148		$	1,026		$	558		$	162		$	157		$	149		$	551		$	120		$	133
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			—			—			28			28			—
Add: Bond redemption		—			—			—			—			—			—			—			—			—			6			—			6
Add: Pension settlement charge		1			1			—			—			1			—			1			—			—			1			1			—
Add: Tax reform		—			—			—			—			(394	)		(394	)		—			—			—			—			—			—
Add: Transaction costs		7			2			3			2			4			3			1			—			—			—			—			—

Total adjustments		8			3			3			2			(389	)		(391	)		2			—			—			35			29			6

Adjusted income taxes	$	470		$	159		$	161		$	150		$	637		$	167		$	164		$	157		$	149		$	586		$	149		$	139

Adjusted Effective Tax Rate
Reported income before income taxes and equity investments	$	1,871		$	623		$	643		$	605		$	2,287		$	595		$	585		$	566		$	541		$	2,048		$	454		$	489
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			—			—			96			96			—
Add: Bond redemption		—			—			—			—			—			—			—			—			—			16			—			16
Add: Pension settlement charge		4			4			—			—			2			—			2			—			—			4			4			—
Add: Argentina currency devaluation		10			10			—			—			—			—			—			—			—			—			—			—
Add: Transaction costs		64			21			24			19			52			17			14			15			6			—			—			—

Total adjustments		78			35			24			19			54			17			16			15			6			116			100			16

Adjusted income before income taxes and equity investments	$	1,949		$	658		$	667		$	624		$	2,341		$	612		$	601		$	581		$	547		$	2,164		$	554		$	505

Reported effective tax rate		24.7	%		25.0	%		24.6	%		24.5	%		44.9	%		93.8	%		27.7	%		27.7	%		27.5	%		26.9	%		26.4	%		27.2	%
Adjusted effective tax rate		24.1	%		24.2	%		24.1	%		24.0	%		27.2	%		27.3	%		27.3	%		27.0	%		27.2	%		27.1	%		26.9	%		27.5	%
Adjusted Noncontrolling Interests
Reported noncontrolling interests	$	48		$	19		$	19		$	10		$	61		$	16		$	16		$	14		$	15		$	38		$	5		$	10
Add: Cost reduction program and other charges, net		(1	)		—			—			(1	)		—			—			—			—			—			5			5			—

Total adjustments		(1	)		—			—			(1	)		—			—			—			—			—			5			5			—

Adjusted noncontrolling interests	$	47		$	19		$	19		$	9		$	61		$	16		$	16		$	14		$	15		$	43		$	10		$	10

Adjusted Net Income - Praxair, Inc.
Reported net income - Praxair, Inc.	$	1,403		$	461		$	480		$	462		$	1,247		$	33		$	419		$	406		$	389		$	1,500		$	339		$	356
Add: Cost reduction program and other charges, net		1			—			—			1			—			—			—			—			—			63			63			—
Add: Bond redemption		—			—			—			—			—			—			—			—			—			10			—			10
Add: Pension settlement charge		3			3			—			—			1			—			1			—			—			3			3			—
Add: Tax reform		—			—			—			—			394			394			—			—			—			—			—			—
Add: Argentina currency devaluation		10			10			—			—			—			—			—			—			—			—			—			—
Add: Transaction costs		57			19			21			17			48			14			13			15			6			—			—			—

Total adjustments		71			32			21			18			443			408			14			15			6			76			66			10

Adjusted net income - Praxair, Inc.	$	1,474		$	493		$	501		$	480		$	1,690		$	441		$	433		$	421		$	395		$	1,576		$	405		$	366

Reported percentage change		16	%		10	%
Adjusted percentage change		18	%		14	%
Adjusted Diluted EPS
Reported diluted EPS	$	4.82		$	1.58		$	1.65		$	1.59		$	4.32		$	0.11		$	1.45		$	1.41		$	1.35		$	5.21		$	1.18		$	1.24
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			—			—			0.22			0.22			—
Add: Bond redemption		—			—			—			—			—			—			—			—			—			0.04			—			0.04
Add: Pension settlement charge		0.01			0.01			—			—			—			—			—			—			—			0.01			0.01			—
Add: Tax reform		—			—			—			—			1.36			1.36			—			—			—			—			—			—
Add: Argentina currency devaluation		0.03			0.03			—			—			—			—			—			—			—			—			—			—
Add: Transaction costs		0.20			0.07			0.07			0.06			0.17			0.05			0.05			0.05			0.02			—			—			—

Total adjustments		0.24			0.11			0.07			0.06			1.53			1.41			0.05			0.05			0.02			0.27			0.23			0.04

Adjusted diluted EPS	$	5.06		$	1.69		$	1.72		$	1.65		$	5.85		$	1.52		$	1.50		$	1.46		$	1.37		$	5.48		$	1.41		$	1.28

Reported percentage change		14	%		9	%
Adjusted percentage change		17	%		13	%

Page 8 of 8 (cont’d)


	2018									2017												2016
	Q3			Q2			Q1			Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1 (a)

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	$	871		$	790		$	688		$	836		$	794		$	701		$	710		$	726		$	788		$	706		$	569
Less: capital expenditures		(380	)		(351	)		(325	)		(339	)		(320	)		(325	)		(327	)		(409	)		(376	)		(357	)		(323	)

Free Cash Flow	$	491		$	439		$	363		$	497		$	474		$	376		$	383		$	317		$	412		$	349		$	246

Net Debt, Capital and Debt-to-Capital Ratio - The debt-to-capital ratio is a measure used by investors, financial analysts and management to provide a measure of financial leverage and insights into how the company is financing its operations.

Debt	$	8,312		$	8,458		$	8,842		$	9,000		$	9,237		$	9,367		$	9,368		$	9,515		$	9,842		$	9,956		$	9,404
Less: cash and cash equivalents		(600	)		(479	)		(545	)		(617	)		(607	)		(535	)		(519	)		(524	)		(627	)		(567	)		(221	)

Net debt		7,712			7,979			8,297			8,383			8,630			8,832			8,849			8,991			9,215			9,389			9,183
Equity and redeemable noncontrolling interests:
Redeemable noncontrolling interests		15			14			13			11			11			10			10			11			11			12			119
Praxair, Inc. shareholders’ equity		6,232			6,027			6,368			6,018			6,256			5,807			5,529			5,021			5,245			5,140			4,888
Noncontrolling interests		503			501			516			493			475			453			436			420			393			407			417

Total equity and redeemable noncontrolling interests		6,750			6,542			6,897			6,522			6,742			6,270			5,975			5,452			5,649			5,559			5,424

Capital	$	14,462		$	14,521		$	15,194		$	14,905		$	15,372		$	15,102		$	14,824		$	14,443		$	14,864		$	14,948		$	14,607
Debt-to-capital		53.3	%		54.9	%		54.6	%		56.2	%		56.1	%		58.5	%		59.7	%		62.3	%		62.0	%		62.8	%		62.9	%


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 Praxair, Inc. shareholders’ equity).

Reported net income - Praxair, Inc.	$	461		$	480		$	462		$	33		$	419		$	406		$	389		$	406		$	339		$	399		$	356
Add: noncontrolling interests		19			19			10			16			16			14			15			13			5			10			10
Add: interest expense - net		40			44			46			41			41			38			41			38			43			44			65
Less: tax benefit on interest expense - net *		(10	)		(11	)		(11	)		(11	)		(11	)		(11	)		(12	)		(10	)		(12	)		(12	)		(20	)

Net operating profit after-tax (NOPAT)	$	510		$	532		$	507		$	79		$	465		$	447		$	433		$	447		$	375		$	441		$	411
Pre-tax Adjustments:
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			—			96			—			—
Add: Pension settlement charge		4			—			—			—			2			—			—			—			4			—			—
Add: Argentina currency devaluation		10			—			—			—			—			—			—			—			—			—			—
Add: Transaction costs		21			24			19			17			14			15			6			—			—			—			—
Less: income taxes on pre-tax adjustments		(3	)		(3	)		(2	)		(3	)		—			—			—			—			(29	)		—			—
Add: Tax reform net income tax charge		—			—			—			394			—			—			—			—			—			—			—

Adjusted NOPAT	$	542		$	553		$	524		$	487		$	481		$	462		$	439		$	447		$	446		$	441		$	411
4-quarter trailing NOPAT	$	1,628		$	1,583		$	1,497		$	1,424		$	1,792		$	1,702		$	1,696		$	1,674		$	1,688		$	1,751		$	1,658
4-quarter trailing adjusted NOPAT	$	2,106		$	2,045		$	1,953		$	1,869		$	1,829		$	1,794		$	1,773		$	1,745		$	1,759		$	1,769		$	1,789
Ending capital (see above)	$	14,462		$	14,521		$	15,194		$	14,905		$	15,372		$	15,102		$	14,824		$	14,443		$	14,864		$	14,948		$	14,607
5-quarter average ending capital	$	14,891		$	15,019		$	15,079		$	14,929		$	14,921		$	14,836		$	14,737		$	14,570		$	14,513		$	14,480		$	14,451
After-tax ROC (4-quarter trailing NOPAT / 5-quarter average capital)		11.3	%		10.5	%		9.9	%		9.5	%		12.0	%		11.5	%		11.5	%		11.5	%		11.6	%		12.1	%		11.5	%
Adjusted after-tax ROC (4-quarter trailing adjusted NOPAT / 5-quarter average capital)		14.1	%		13.6	%		13.0	%		12.5	%		12.3	%		12.1	%		12.0	%		12.0	%		12.1	%		12.2	%		12.4	%


* Tax benefit on interest expense - net is generally presented using the reported effective rate.

EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin - These measures are used by investors, financial analysts and management to assess a company’s profitability.

Reported net income - Praxair, Inc.	$	461		$	480		$	462		$	33		$	419		$	406		$	389		$	406		$	339		$	399		$	356
Add: noncontrolling interests		19			19			10		$	16			16			14			15			13			5			10			10
Add: interest expense - net		40			44			46		$	41			41			38			41			38			43			44			65
Add: net pension and OPEB cost (benefit), excluding service cost		6			2			2			3			6			2			(15	)		(1	)		8			2			—
Add: income taxes		156			158			148			558			162			157			149			152			120			146			133
Add: depreciation and amortization		306			311			311			307			298			292			287			285			284			281			272

EBITDA	$	988		$	1,014		$	979		$	958		$	942		$	909		$	866		$	893		$	799		$	882		$	836
Adjustments:
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			—			96			—			—
Add: Argentina currency devaluation		10			—			—			—			—			—			—			—			—			—			—
Add: Transaction costs		21			24			19			17			14			15			6			—			—			—			—

Adjusted EBITDA	$	1,019		$	1,038		$	998		$	975		$	956		$	924		$	872		$	893		$	895		$	882		$	836
Reported sales		3,024			3,061			2,999			2,953			2,922			2,834			2,728			2,644			2,716			2,665			2,509
EBITDA margin		32.7	%		33.1	%		32.6	%		32.4	%		32.2	%		32.1	%		31.7	%		33.8	%		29.4	%		33.1	%		33.3	%
Adjusted EBITDA margin		33.7	%		33.9	%		33.3	%		33.0	%		32.7	%		32.6	%		32.0	%		33.8	%		33.0	%		33.1	%		33.3	%

(a)

2016 first quarter operating cash flow was restated for the reclassification of $16 million cash payment related to the bond redemption from operating cash flow to financing cash flow on the statement of cash flow pursuant to new accounting guidance adopted in the first quarter of 2018 relating to the classification of certain cash receipts and payments.

PRAXAIR INC 8-K