The European Industrial Gas Market: East vs West John Raquet & James Barr

The European Industrial Gas Market: East vs West John Raquet & James Barr World Market Overview Industry reached c. €58Bn (US$77Bn) in 2014 excl. equipment sales, wholesales and non-gas business Estimated to have grown by 2% in 2014 Mainly volume growth and pricing gasworld 5-year forecast lowered to 5-6% CAGR next few years (2020) Maturity or lower project activity? Industrial gases EBIT is at a high currently running at c 17% EBIT margin for Tier 1 Tier 1 Companies: Air Products, Airgas, Praxair, Linde, Air Liquide and TNSC Tier 2 Companies: Messer, SOL, SIAD, CryoInfra, AirWater, Iwatani, Yingde, Westfalen

The East and West: The European Industrial Gas Market: East vs West John Raquet & James Barr Romania Bulgaria Hungary Poland Czech Republic Slovakia Latvia Lithuania Estonia Belarus Ukraine Moldova Russia (European) Croatia Macedonia Bosnia Slovenia Albania Montenegro Armenia Georgia Azerbaijan UK Ireland France Benelux Germany Spain Portugal Switzerland Austria Iceland Finland Sweden Denmark Norway Italy Greece

Europe 2014 The European Industrial Gas Market: East vs West John Raquet & James Barr €17.1Bn

The East: Total Installed Capacity The European Industrial Gas Market: East vs West John Raquet & James Barr

The European Industrial Gas Market: East vs West John Raquet & James Barr The East: ASU Locations Onsite/Merchant Captive

Structure of Supply: Eastern Europe The European Industrial Gas Market: East vs West John Raquet & James Barr

Structure of Supply - by Company: Eastern Europe The European Industrial Gas Market: East vs West John Raquet & James Barr €2.5Bn

The East: Aged Capacity The European Industrial Gas Market: East vs West John Raquet & James Barr

The West: Installed Capacity The European Industrial Gas Market: East vs West John Raquet & James Barr

The European Industrial Gas Market: East vs West John Raquet & James Barr The West: ASU locations Onsite/Merchant Captive

Structure of Supply: Western Europe The European Industrial Gas Market: East vs West John Raquet & James Barr

Commercial Gas Value: Western Europe The European Industrial Gas Market: East vs West John Raquet & James Barr €14.6Bn

The West: Aged Capacity The European Industrial Gas Market: East vs West John Raquet & James Barr

The European Industrial Gas Market: East vs West John Raquet & James Barr Market Value: Eastern Europe €2.5Bn

Market Value: Western Europe €14.6Bn The European Industrial Gas Market: East vs West John Raquet & James Barr

End User Market Forecast The European Industrial Gas Market: East vs West John Raquet & James Barr

Growth drivers and potential challenges Drivers for growth: East: Economic growth + continued roll-out of gas applications Captive-to-onsite conversion (mainly in the East) West: Mature market requires continued application innovation Environmental applications Energy M&A Activity (Homecare + technologies) Potential challenges Macro economic situation Political stability (East) Environmental legislation Power and energy costs Driving the “added value” proposition The European Industrial Gas Market: East vs West John Raquet & James Barr

Safety Safety remains at the core of our industry and is EIGA’s mission and work. Industry engagement Focus areas Current initiatives New initiatives Legislation Source: EIGA The European Industrial Gas Market: East vs West John Raquet & James Barr

Conclusion West: growth forecast range from 1.7% to 3.4% p.a. to Maturity could result in IPI growth trend but not expected. East: growth forecast range from 4.3 to 5.6% p.a. to Growth suppressed to Russia and Ukrainian economic/political issues. Power and energy pass-through has inflated growth in the past decade. Our industry should be leading the environmental drive. Captive conversion to onsite upside potential in Russia & The Ukraine M&A activity will continue but at small/medium end of the business. Operational efficiency savings continue – from where? Safety remains core to the DNA of our industry The European Industrial Gas Market: East vs West John Raquet & James Barr

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