Condensed Statement of Cash Flow

Cash flow from operating activities includes all cash generated from operations and also reflects cash paid for taxes. In Q1/2012, the cash flow from operating activities amounted to a net outflow of €46 million, compared to a net inflow of €66 million in Q1/2011. This was driven by the temporary increase in trade working capital as a result of the expanded trading activity. The payment for income taxes rose to €11 million compared to €6 million in Q1/2011 due to positive earnings in Q1/2012.

Our cash flow from investing activities amounted to a net outflow of €28 million in Q1/2012, compared to a net outflow of €20 million in Q1/2011. This increase was due to capital expenditure and cash payments for acquisitions, mainly due to the acquisition of the 51 per cent of remaining shares of Linde Creighton Ltd. in the UK. Cash receipts from the disposal of non-current assets were €7 million in Q1/2012 compared to €1 million in Q1/2011, mainly due to the sale of property in Basingstoke, UK.

In Q1/2012, free cash flow, defined as cash flow from operating activities less cash flow from investing activities, decreased by €119 million to a cash outflow of €74 million, compared to a cash inflow of €46 million in Q1/2011.