Create Shareholder Value Create Shareholder Value: Guillermo Novo

Investor Conference 2015
Moving forward
Create Shareholder Value

Guillermo Novo
Executive Vice President of Air Products,

Responsible for Materials Technologies
Materials Technologies
What you will hear today
Portfolio of world-class businesses

Leading positions in attractive niche markets with favorable
industry structures
Sustainable competitive advantages from long-term customer
relationships, technology & innovation leadership, and structural
cost advantages with strategically located manufacturing assets
Secular growth trends supported by new product development &
innovation pipeline
Critical mass with geographic, end-market and customer diversity
Mgmt team with demonstrated ability to rapidly respond to changing
market dynamics focused on delivering sustainable growth
Solid growth
High margins
Low capital
intensity
Strong free
cash flow
A portfolio of world-class businesses

Sales*: $2,109
$521
EBITDA*: $5
Margin*: 24.7%
Performance Materials (PMD)
Epoxy
Curing Agents
% of
Sales
25%
Polyurethane
Additives
15%
Electronic Materials (EMD)
Specialty
Additives
15%
Advanced
Materials
Process
Materials
15%
20%
Organized around six SBUs focused,

focused accountable with strong business leaders
Niche businesses #1 or #2 in majority of target markets
Value creation through market expertise and customer intimacy / technical service
Innovation-driven businesses providing tailored product solutions
Performance critical products that are a small portion of customers product costs
Global scale manufacturing and supply chain network
Delivery
Systems
10%
Europe
18%
Asia
28%
Americas
54%
* LTM 12/31/14, non-GAAP measuressee appendix for reconciliation
Materials Technologies Global Infrastructure

Scale and breadth to compete globally
Well
Well-invested
invested global
infrastructure
Americas
Europe
In-region flexible
manufacturing capabilities
Local technical support
Collaborative product
development with customers
3,300 employees
10 major office sites
20 manufacturing sites ( PMD / EM)
11 Global R&D + regional technology centers (
3
PMD /
EM)
Asia
Materials Technologies Portfolio
~80% of revenue from products with #1 or #2 positions

Estimated
Global
Position
PMD Portfolio
EMD Portfolio
Estimated
Global
Position
Epoxy Curing Agents
#1
Advanced Deposition
#1
Amine Catalysts
#1
Planarization (CMP)
#2
Low/Non-emissive Amine Catalysts
#1
Process Gases
#1
Polyurethane Metal Catalysts
#2
Delivery Systems
#1
Wetting Agents
#1
Favorable competitive dynamics with few global players

that drive trends and product innovation
* Management estimates based on MT addressable markets
Performance Materials
Our business model is focused on a $10B high-value,

lower-volume defensible space of the $150B materials space
Our Business
Our Focus
~ $10B
High value specialty

with functional
product leadership
Differentiated
Commodity
$150 Billion Total Value
Application engineered products

Our products drive performance, quality and environmental
benefits in customers end product
Pricing dynamics based on value-in-use true specialty
products
Critical competencies in specialty amines, alkoxylates and
silicone chemistries
Strong IP and product/application know-how
Proven expertise in chemical derivatization
Formulate to customers
customers in
in-use
use needs
Revenues from products introduced within the last 5 years
historically in 15-25% range
Defensible leading positions in attractive markets
Historically growing at multiples of GDP
Favorable competitive dynamics
Substantial emerging market
presence and opportunities
Technology & innovation expanding product performance boundaries

SBU
Key Products
Key End-Markets
Key Characteristics
Curing Agents
Accelerators and
Catalysts
Adhesive Promoters
Marine and Protective High

P f
Performance
Coatings
C ti
Construction
Composites
Structural Adhesives
Focus on $3.1 billion market for curing agent and

specialty
i lt additives
dditi
Largest player in curing agents
Leverage amine position to expand technology
toolbox and extend innovation boundaries
Global manufacturing footprint
Catalysts:
Amine, Metal,
Low/Non-Emissive
Surfactants
Curatives
Construction
Consumer Foams
Automotive
Adhesives
Focus on $1.4 billion specialty market for PU

additives
Leader in catalysts
Strong IP in growing non-emissive catalysts
Growing position in Silicone surfactants
Strategic manufacturing footprint in U.S. and China
Surfactants
Wetting Agents
Dispersants
Defoamers
Coatings
Inks
Industrial Cleaning
Chemical Processes
Focus on a fragmented $5.5 billion specialty

additive market
Focus on environmentally friendly products
Leader in North American I&I surfactants
Surface science and formulation expertise
Epoxy Curing Agents
Polyurethane Additives
Specialty Additives
Electronic Materials
Our offerings target 6 of 7

critical process steps
Insulators
Conductors
CMP
CMP,
Back-end
Cleans
Planarization
Slurries
Ion Implant,
Doping
DEP
Clean
CMP
Dope
PROCESS
STEPS
Strip
Post etch
Post-etch
Residue Cleans
Litho
Etch
Etch Tool
Cleaning
Scale across all product platforms compared to competitors
Participation focused on the IC Materials industry

$450 B Semiconductor Value Chain
Our Business
IC
Matls
Critical competencies in molecular design,

formulation expertise and ultrahigh-purity chemistry
S
Semiconductor
i
d t
M
Market
k t
OEM
100
200
300
Photomasks
9%
Photoresists
4%
Polysilicon
13%
CMP Slurries
4%
Specialty Gases
4%
Wafers
34%
Bulk Gases
4%
Specialty
Specialt
Chemicals
1%
400
500
Our Focus
~ $5B
EM participates
in only ~1% of
the overall
Semiconductor
market(1)
Specialty Substrates
4%
Other
18%
Sputtering Targets
2%
Changing semiconductor industry dynamics, reducing

cyclicality and lowering earnings volatility
90% of revenues from IC materials; remainder from
LCD displays
Increased importance of materials in next generation
nodes driving growth
Strong customer intimacy
Product
d
d
development
l
partnerships
h
with
h customers
and OEMs
Strategically located assets in Asia
Advanced Materials historically 30-45% of revenue
from new product introductions in the last 5 years
Wet Process
Chemicals
3%
$50 billion IC materials market

8
(1)
Excludes Delivery Systems SBU.
Shifting focus to high growth, high margin advanced materials platform

SBU
Advanced Materials
P
Process
Materials
M t i l
Delivery Systems
Key Products
Key Characteristics
CMP Slurries and

P t CMP Cleans
Post
Cl
Formulated Products for
Surface Prep & Clean
Advanced Deposition
Materials for Thin Films
Collaboration with customers and OEMs to create enabling

products
d t att an accelerated
l
t d pace
Product portfolio composed of highly differentiated products
requiring significant technical support
Expertise in molecule design, applications/material integration and
ultrahigh-purity manufacturing
Gaining market share in all segments
Process Gases for:

Deposition
Clean & Etch
Doping
Lasers
Equipment for:
Specialty Gases
Chemicals
CMP Slurries
High-precision and -reliability systems

Complementary to AM and PM businesses
Critical, high-purity process gases

Sales primarily from 10 industry-critical products
Global presence across a complex supply chain
p
dynamics
y
favor existing
g participants
p
p
Competitive
Sustainable Competitive Advantages

Strong
Customer
Relationships
Technology
and
Innovation
Leadership
Unique
Product
Positioning
Global
Infrastructure
Diversified blue chip customer base

Long-standing relationships often spanning decades
Active joint development programs with customers and OEMs
Leading market
positions
Proprietary technologies
Unique chemistry, manufacturing process, formulation & supply chain know-how
Speed to market driven by product development and product scale-up capabilities
World-class quality and analytical capabilities
Performance critical products tailored to meet customers specific needs

High costs to reformulate, Process of Record or Specd requirements
Iconic well-established brands
Superior
performance-based
products
High customer
switching costs
- PMD: Dabco, Polycat, Epilink Dynol and Surfynol

- EM: Schumacher, PDEMS, DA Nano, ACT, GasGuard & ChemGuard
Geographically advantaged in-region manufacturing and supply network

Technical sales capabilities
R&D infrastructure
Capital and lead time requirement to build competitive world-scale supply network
Long-term
customer
relationships
10
Materials Technologies Growth Drivers
Accelerating growth drivers supporting Base business

Growth as
multiple of
global
l b l GDP
Impact on Materials
l Technologies
h l
2,500
,
MT Revenue History
2,000
Base
Business
1x
35% growing with underlying GDP
1,500
1,000
Environment
Megatrends
2-3x
Energy efficiency
Emerging markets
35% driven by
consumer demand
500
2009 2010 2011 2012 2013 2014
5-Year Growth Trend

Innovation
>3x
30% x-factor segments / offerings
Potential to Grow at [1.5-3] x GDP
11
PMD:
EMD:
MT:
10%
8%
9%
Delivered 2x market growth through

innovation in high growth segment
Key Growth Drivers
Anticipated
p
Growth
Innovation Focus
Increasing efficiency
requirements of customer
products
Improved work site productivity in low temperature environments
Increased focus on
energy efficiency
Enable accelerated growth of PU insulation
New adhesives technologies (mercaptans, epi derivatives)

High efficiency, low temperature industrial cleaners
Weight reduction through increased use of composite materials
[1.5-3] x GDP
High performance waterborne, low/no solvent chemicals

Eco-friendly applications
low VOC/low toxicity in
end products
Catalyst and silicone surfactant with emphases on non-emissive, high

density performance and enhanced insulation capabilities
High efficiency, low/no odor building and appliance insulation
Bedding and automotive seating with reduced chemical emissions
Megatrends: Energy Efficiency, Environmental and Emerging Markets

12
Connected devices growth estimated at

6x global population in 2020 from 2x in 2015
Key Growth Drivers
Innovation Focus
Changing Market Mix

Device Mobility and Connectivity
The Internet of Things (IoT)
Anticipated
Growth
Drive robust semiconductor MSI growth through the next

decade at 200mm and 300mm customers
Big data processing

Changing Technology Requirements
Faster, lower power ICs for small
form factors
New 3-D memory device structures
Moores Law and more shift to
smaller IC design nodes
New Materials (lower deposition temperature conductors

and dielectrics, novel fab process materials)
Integrated materials, processes, and delivery systems
solutions tailored for customers process requirements
Collaborative solutions between materials suppliers, OEMs,
and semiconductor companies
Megatrends: Emerging Markets, Mobility, Big Data World

13
[1.5-2] x GDP
Track Record of Improving Performance
Value creation under new Materials Technologies management (post-2012)

Issues
Actions & Improvements
(pre-2012)
(post-2012)
Commitment to EMD Advanced Materials

Refocused on core segments
Invested in R&D resources and capabilities
Low Profitability and Volatility in EMD

Several unprofitable businesses and investments
Manufacturing footprint gaps
Industry overinvestment in photovoltaic
Innovation focus and continuity challenges
Improved Low Profitability EMD Businesses

Exited unprofitable businesses/Investments
Shut down uncompetitive capacity
Improved cost structure
PMD Growth Stalled

Technology portfolio imbalances
Focused on entering new markets
Recalibrated PMD Strategy

Strengthen the core
Rebalanced Innovation Portfolio
Investing in U.S. and Asia
Increased
I
d focus
f
on productivity
d ti it
Focus
Limited visibility on segment level performance
Consistency and Reliability of Improvement

Created accountable SBU structure
Deliver on commitments
$79
$98
$99
$114
$89
$117
$122
$152
$129
Q1 FY2013
Q2 FY2013
Q3 FY2013
Q4 FY2013
Q1 FY2014
Q2 FY2014
Q3 FY2014
Q4 FY2014
Q1 FY2015
Quarterly EBITDA Performance ($m)

14
non-GAAP measuressee appendix for reconciliation
High-Quality Financial Performance
High Margins + Low Capital Intensity = Significant Cash Generation

Sales
$2,200
$600
EBITDA and Margin
2,000
400
23%
1,800
200
21%
1,600
19%
0
2013
2014
LTM 2014
2013
2014
Performance Drivers
Growth/Innovation
G
th/I
ti
Portfolio Improvements
Price/Mix Improvement
High Productivity/Low Cost
Low Capital Intensity/High Returns
Strong Free Cash Flow
15
25%
non-GAAP measuressee appendix for reconciliation
LTM 2014
Organic Growth Initiatives
Performance Materials Priorities
Electronic Materials Priorities
1. Strengthen position in amine chemistries

Organic investments and targeted acquisitions
1. Grow Advanced Materials

Differentiated products for advanced IC
manufacturing
Increase supply and technology capabilities in Asia
Leverage integration opportunities across platforms
2. Expand epoxy chemistries toolkit

Broaden chemistry set focusing on niche,
high value segments
Acquire new functionality
3. Strengthen our silicones chemistry platform
Leveraging existing chemistry and
process capabilities
p
p
Acquire niche market positions
4. Geographic growth
2. Continue to Reposition Process Materials

Improve profitability by restructuring assets,
increase productivity, and lower cost structure
Selectively increase Asia supply footprint
3. Sustain Delivery System
Position offering to meet IC and display giga-fab
volume & purity requirements, and cost targets
4. Invest in Quality & Reliability
16
Inorganic growth accelerators
Potential for small to medium size Bolt-on

Bolt on acquisitions
Strengthen Core Businesses and Market Positions
Expand Technology Toolbox
Strengthen Geographic Expansion
17
Our Priorities
Safety
Top Line Growth
Margin Enhancement
Strengthen SBU Level
Management Capabilities
FY14
FY15
(5m YTD)
(5m YTD)
Change
Employee Lost-time
Injury Rate
0.25
0.00
100% Better
Employee Recordable
Injury Rate
0.76
0.13
83% Better
Advance our Strategic

Initiatives
18
What you heard today
Portfolio of world-class businesses

Leading positions in attractive niche markets with favorable
industry structures
Sustainable competitive advantages from long-term customer
relationships, technology & innovation leadership, and structural
cost advantages with strategically located manufacturing assets
Secular growth trends supported by new product development &
innovation pipeline
Critical mass with geographic, end-market and customer diversity
Mgmt team with demonstrated ability to rapidly respond to changing
market dynamics focused on delivering sustainable growth
19
Solid growth
High margins
Low capital
intensity
Strong free
cash flow
Moving forward
Thank you
tell me more
20

Create Shareholder Value Create Shareholder Value: Guillermo Novo

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