Linde plc Ordinary Share

Core operations · Operational disruption and business continuity

These events could disrupt or delay Linde's ability to produce and distribute its products to customers, result in asset impairments, and could potentially expose Linde to third-party liability claims. In addition, such events could impact Linde's customers and suppliers resulting in temporary or long-term outages and/or the limitation of supply of energy and other raw materials used in normal business operations.

Project and contract management · Project execution and delivery risks

Operating results are also dependent on Linde's ability to complete new construction projects on time, on budget and in accordance with performance requirements. Failure to do so may expose Linde's business to loss of revenue, potential litigation and loss of business reputation.

Supply chain and procurement · Supplier operation and dependance

For hydrogen, helium, carbon dioxide, carbon monoxide, and specialty gases, raw materials are largely purchased from outside sources. A disruption in supply of such raw materials could impact Linde's ability to meet contractual supply commitments.

Supply chain and procurement · Raw material availability and cost volatility

Energy is the single largest cost item in the production and distribution of industrial gases. Linde attempts to minimize the financial impact of variability in these costs through the management of customer contracts and reducing demand through operational productivity and energy efficiency. Such attempts may not successfully mitigate cost variability, which could negatively impact Linde's financial condition or results of operations.

Core operations · Quality control and product defects

Linde's products and services, if defective or not handled or performed appropriately, may lead to personal injuries, business interruptions, environmental damages or other significant damages, which may result, among other consequences, in liability, losses, monetary penalties or compensation payments.

Strategic execution · Joint venture and partnership risks

Linde has evaluated and expects to continue to evaluate, a wide array of potential strategic acquisitions and joint ventures. Foreign acquisitions and joint ventures involve unique risks in addition to those mentioned herein, including those related to integration of operations across different cultures and languages, currency risks and the particular economic, political and regulatory risks associated with specific countries.

Strategic execution · Merger acquisition and divestiture risks

Linde has evaluated and expects to continue to evaluate, a wide array of potential strategic acquisitions and joint ventures. Many of these transactions, if consummated, could be material to its financial condition and results of operations. The process of integrating an acquired company, business or group of assets may create unforeseen operating difficulties and expenditures.

Data and privacy · Data protection and privacy laws

Linde is subject to regulations in the following areas, among others: data protection including artificial intelligence.

Legal and litigation · Product liability and warranty claims

Risks associated with products and services may result in potential liability claims, the loss of customers or damage to Linde's reputation. Principal possible causes of risks associated with products and services are product defects or an inadequate level of customer care when Linde is providing services.

Tax and financial reporting · Transfer pricing and international tax

Since Linde is currently treated as U.K. tax resident, any potential changes in the tax rules applying to U.K. tax-resident companies would directly affect Linde. A change in Linde's tax residency could have a negative effect on the company's future profitability and may trigger taxes on dividends or exit charges.

Industry regulation · Safety and environmental regulations

Linde is subject to regulations in the following areas, among others: safety; environmental protection, including climate change and energy efficiency laws and policies, and environmental related reporting and disclosures.

Natural and catastrophic events · Terrorism and security threats

Linde's operations are exposed to catastrophic events such as health epidemics; pandemics; and acts of war or terrorism. These events could disrupt or delay Linde's ability to produce and distribute its products to customers.

Natural and catastrophic events · Natural disasters and extreme weather

Linde's operations are exposed to physical risks associated with the occurrence of natural disasters linked to climate change, such as extreme weather events including hurricanes and floods, as well as catastrophic events such as health epidemics; pandemics; and acts of war or terrorism.

Geopolitical and trade · Trade policies tariffs and sanctions

Linde is subject to regulations in the following areas, among others: trade and import/export restrictions, as well as economic sanctions laws.

Credit and liquidity · Access to capital and financing

Volatility and disruption in the U.S., European and global credit and equity markets, from time to time, could make it more difficult for Linde to obtain financing for its operations and/or could increase the cost of obtaining financing.

International and currency · Foreign exchange and currency exposure

Because a significant portion of Linde's revenue is denominated in currencies other than its reporting currency, the U.S. dollar, changes in exchange rates will produce fluctuations in revenue, costs and earnings and may also affect the book value of assets and liabilities and related equity.

International and currency · International operations and emerging markets

Linde has substantial international operations which are subject to risks including devaluations in currency exchange rates, transportation delays and interruptions, political and economic instability and disruptions, restrictions on the transfer of funds, trade conflicts and the imposition of duties and tariffs, import and export controls, changes in governmental policies, labor unrest, possible nationalization and/or expropriation of assets.

Technology infrastructure · Technology systems and infrastructure failure

Operational failures and breaches of security from such attempts could lead to the loss or disclosure of confidential information or personal data belonging to Linde or our employees and customers or suppliers. These failures and breaches could result in business interruption or malfunction and lead to legal or regulatory actions that could result in a material adverse impact on Linde's operations, reputation and financial results.

Cybersecurity and data protection · Data breaches and cyber attacks

Linde relies on information technology systems and networks, including systems that utilize advanced technologies for business and operational activities. These systems are susceptible to outages due to fire, flood, power loss, telecommunications failures, viruses, break-ins and similar events, or breaches of security. Our information technology systems have in the past been and in the future will likely be subject to increasingly sophisticated cyber attacks and disruptions.

Digital transformation and innovation · Technology obsolescence and evolution

If Linde fails to keep pace with technological advances in the industry or if new technology initiatives do not become commercially accepted, customers may not continue to buy Linde's products and results of operations could be adversely affected.