Convenience Translation Joint Merger Report pursuant to Sec. 8 German Transformation Act Report of the Executive Boards of Linde AG, Munich, and Linde Intermediate Holding AG, Munich, on the merger of Linde AG into Linde Intermediate Holding AG of November 1, 2018 Table of Contents 1. Introduction ................................................................................................................................ 4 2. Description of Linde plc Group, Linde AG and Linde Intermediate ......................................... 5 2.1 Group Structure of Linde plc Group ............................................................................. 5 2.2 Information on Linde AG ............................................................................................. 6 2.2.1 Company History ....................................................................................................... 6 2.2.2 Registration, Registered Office, Financial Year and Business Purpose .................... 7 2.2.3 Nominal Capital, Shareholders and Stock Exchange Trading ................................... 7 2.2.4 Executive Bodies and Representation ..................................................................... 11 2.2.5 Business Activities, Group Structure and Major Holdings...................................... 12 2.2.6 Business Development and Performance Situation ................................................. 14 2.2.7 Employees and codetermination .............................................................................. 19 2.3 Information on Linde Intermediate ............................................................................. 20 2.3.1 Registration, Registered Office, Financial Year and Business Purpose .................. 20 2.3.2 Nominal Capital and Shareholder Structure ............................................................ 20 2.3.3 Executive Bodies and Representation ..................................................................... 21 2.3.4 Previous Activities ................................................................................................... 21 2.3.5 Business Performance and Results of Linde Intermediate ...................................... 22 2.4 Information on Linde plc as Parent Company ............................................................ 22 2.4.1 Registration, Registered Office, Financial Year and Business Purpose .................. 22 2.4.2 Nominal Capital and Shareholder Structure ............................................................ 23 2.4.3 Executive Bodies and Representation ..................................................................... 24 2.5 Further Companies of Linde plc Group ...................................................................... 24 2.5.1 Praxair, Inc. and Zamalight Holdco LLC ................................................................ 24 2.5.2 Linde Holding GmbH .............................................................................................. 25 2.6 Business Activities of Linde plc Group ...................................................................... 27 3. Major Reasons for the Merger and the Squeeze-Out of the Minority Shareholders ................ 27 3.1 Simplification of the Group Structure ......................................................................... 27 3.2 Cost Saving, Flexibility and Transaction Safety ......................................................... 28 3.3 Withdrawal of the Listing ........................................................................................... 28 4. Alternatives to the Planned Merger ......................................................................................... 30 5. Implementation of the Planned Merger ................................................................................... 32 5.1 Merger Agreement ...................................................................................................... 32 5.2 Making Documents Available, Notice, Submission of the Merger Agreement to the Commercial Register............................................................................................. 33 -2- 5.3 Transfer Resolution of the General Meeting of Linde AG; Compliance with the Three-Month Period .................................................................................................... 34 5.4 Application and Registration of the Merger; Entry into Force ................................... 35 5.5 Costs of the Merger ..................................................................................................... 35 6. Effects of the Planned Merger ................................................................................................. 36 6.1 Company Law Implications ........................................................................................ 36 6.2 Consequences for Shareholdersʼ Rights ..................................................................... 36 6.3 Transfer of Assets by Means of Universal Succession ............................................... 37 Balance Sheet Effects of the Merger ......................................................................... 37 6.5 Effects on Employees ................................................................................................. 39 6.6 Tax Consequences of the Merger ............................................................................... 42 6.6.1 Income Tax Consequences for Linde AG ............................................................... 43 6.6.2 Income Tax Consequences for Linde Intermediate ................................................. 43 6.6.3 Real Estate Transfer Tax Consequences of the Merger ........................................... 44 6.6.4 Tax Consequences for Linde AG Shareholders ....................................................... 44 6.6.5 Tax Consequences of the Merger Agreement ......................................................... 45 7. Explanation of the Merger Agreement..................................................................................... 45 7.1 Transfer of Assets, Closing Balance Sheet (Sec. 1) .................................................... 45 7.2 Squeeze Out of the Minority Shareholders of the Transferring Company (Sec. 2) .... 45 7.3 No Consideration (Sec. 3) ........................................................................................... 46 7.4 Effective Date of the Merger (Sec. 4) ......................................................................... 46 7.5 Special Rights and Benefits (Sec. 5) ........................................................................... 46 7.6 Consequences of the Merger for Employees and their Representations (Sec. 6) ....... 50 7.7 Change of the Effective Date (Sec. 7) ........................................................................ 50 7.8 Condition Precedent, Effectiveness, Reservation of Right of Withdrawal (Sec. 8).... 51 7.9 Final Provisions (Sec. 9) ............................................................................................. 51 8. Securities and Stock Exchange Trade ...................................................................................... 52 9. No Exchange Ratio .................................................................................................................. 53 -3- 1. Introduction The envisaged merger of Linde AG into Linde Intermediate Holding AG in connection with the squeeze-out of the other shareholders of Linde AG (“Minority Shareholders”) in exchange for cash compensation (“Merger Squeeze-Out”) is executed against the backdrop of the merger between Linde AG and its subsidiaries (together the “Linde AG Groupˮ) and Praxair, Inc., a listed stock corporation under the laws of the State of Delaware (“Praxair, Inc.ˮ), and its subsidiaries (together the “Praxair Groupˮ) under Linde plc, a stock corporation (public limited company) incorporated under Irish law (the “Business Combination” ). With completion of the Merger, both Linde AG and Praxair, Inc. have become indirect subsidiaries of Linde plc (Linde plc, Linde AG Group and Praxair Group together the “Linde plc Groupˮ). As part of the Business Combination, Linde plc acquired 170,874,958 shares, representing approximately 92% of the nominal capital of Linde AG, by way of a voluntary public takeover offer in the form of an exchange offer (“Exchange Offer”). In the course of the Business Combination, Linde plc first transferred the shares in Linde AG to a direct subsidiary, Linde Holding GmbH. Linde Holding GmbH then immediately transferred the shares in Linde AG to Linde Intermediate Holding AG (“Linde Intermediate” or the “Majority Shareholder”). As of the signing date of this Merger Report, Linde Intermediate thus holds 170,874,958 Linde AG shares. After deducting 95.109 treasury shares held by Linde AG in accordance with Sec. 62 para. 1 sentence 2 German Transformation Act this corresponds to a percentage of the nominal capital of Linde AG of approximately 92%. Linde Intermediate thus holds more than nine-tenths of the nominal capital of Linde AG; it is thus the majority shareholder within the meaning of Sec. 62 para. 5 sentence 1 German Transformation Act. An overview of the current group structure of Linde plc Group can be found under Section 2.1 “Group Structure of Linde plc Groupˮ. Via ad hoc announcement dated April 25, 2018, Linde AG announced that Linde plc, Linde AG and Praxair, Inc. have agreed to implement a squeeze-out in the event of the successful completion of the Business Combination