林德集團 (LIN) 2021 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the First Quarter 2021 Linde Earnings Call. (Operator Instructions) Please be advised that today's conference may be recorded. (Operator Instructions) I would now like to hand the conference over to your speaker today, Mr. Juan Pelaez, Head of Investor Relations. Sir, you may begin.

各位好，感謝您稍候。歡迎參加林德（Linde）2021 年第一季財報電話會議。（接線員指示）請注意，今天的會議可能會被錄音。（接線員指示）現在我想把會議交給今天的講者——投資人關係主管 Juan Pelaez 先生。先生，您可以開始了。

Crystal, thank you. Good morning, everyone, and thanks for attending our 2021 first quarter earnings call and webcast. I'm Juan Pelaez, Head of Investor Relations, and I'm joined this morning by Matt White, Chief Financial Officer; and Sanjiv Lamba, Chief Operating Officer. Today's presentation materials are available on our website at linde.com in the Investors section.

Crystal，謝謝。各位早安，感謝各位參加我們 2021 年第一季財報電話會議與網路直播。我是投資人關係主管 Juan Pelaez，今天早上與我一同出席的有財務長 Matt White，以及營運長 Sanjiv Lamba。今天的簡報資料可在我們網站 linde.com 的「投資人」專區取得。

Please read the forward-looking statement disclosure on Page 2 of the slides and note that it applies to all statements made during this teleconference. The reconciliations of the adjusted numbers are in the appendix to this presentation. Sanjiv and Matt will now give an update on Linde's business outlook and first quarter performance, and we'll then be available to answer your questions. Sanjiv, all yours.

請閱讀投影片第 2 頁的前瞻性陳述揭露，並注意其適用於本次電話會議期間所做的所有陳述。調整後數字的調節表列於本簡報的附錄中。接下來 Sanjiv 與 Matt 將更新林德的業務展望與第一季表現，之後我們將開放回答各位的問題。Sanjiv，交給你了。

Thanks, Juan, and good morning, everyone. Once again, the Linde team delivered another stellar quarter across all fronts, 32% growth in EPS, 57% growth in operating cash flows, operating margins expanding 320 basis points and of course, ROC at 14.5%. And of course, very strong progress across our ESG goals of reducing carbon intensity and making strides in gender diversity. Matt will walk through the more -- through the details on the financial numbers. But frankly, they speak for themselves. A few months ago, we marked the 2-year anniversary of the merger. So I'd like to take the opportunity to recap both our performance and also provide you a medium-term outlook on expected financial performance going ahead.

謝謝 Juan，各位早安。林德團隊再次在各方面交出亮眼的一季：每股盈餘（EPS）成長 32%，營運現金流成長 57%，營業利益率擴張 320 個基點，當然，資本報酬率（ROC）達到 14.5%。同時，我們在 ESG 目標上也取得非常強勁的進展，包括降低碳強度以及在性別多元方面持續前進。Matt 會帶各位看更——更詳細的財務數字。不過坦白說，數字本身已說明一切。幾個月前，我們迎來合併兩週年，因此我想藉此機會回顧我們的表現，並提供未來中期的預期財務表現展望。

Let me move on to Slide 3. Slide 3 shows our 2018 to 2020 growth relative to key competitors across 4 major financial metrics: EPS, operating profit margin, operating cash flows and, of course, very importantly, return on capital. From my perspective, these are the 4 most important financial metrics to determine performance in this industry. And it is, of course, quite clear from that slide, as you see, that we have led across all 4. In fact, I'd say with some pride that Linde has the undisputed best performance in the entire industry since our merger. Our employees have accomplished this while integrating 2 global companies during possibly the worst pandemic in a century. But of course, this is nothing new. We have been the industry leader for almost 3 decades now.

我先請各位看投影片第 3 頁。第 3 頁顯示我們 2018 至 2020 年相較主要競爭對手在 4 項主要財務指標上的成長：EPS、營業利益率、營運現金流，以及非常重要的資本報酬率。就我而言，這 4 項是判斷本產業表現最重要的財務指標。而從投影片上可以很清楚看到，我們在這 4 項都領先。事實上，我可以自豪地說，自合併以來，林德在整個產業中擁有無可爭議的最佳表現。我們的員工在可能是一個世紀以來最嚴峻的疫情期間，仍完成了兩家全球公司的整合並達成這些成果。但這當然也不是新鮮事——我們近 30 年來一直是產業領導者。

And I want to move on to Slide 4 and talk a little bit about that history of over 25 years from 1993 to 2017 as the last full year before the merger. The compound annual growth rate of Linde's sales, EPS, dividend and operating cash flow exceeds both competitors across the board. We have a long history of generating compound value for our shareholders while sustainably and profitably growing the company. And of course, Linde's outperformance extends beyond just our industry. On the right-hand side over there, you can see the EPS CAGR that we've had over the same period against the broader S&P 500. So it's clear we've been the industry leader for many years, and we fully expect to continue that trend for decades to come.

接著我想看投影片第 4 頁，談談 1993 年到 2017 年（合併前最後一個完整年度）這超過 25 年的歷史。林德在營收、EPS、股利與營運現金流的年複合成長率（CAGR）全面高於兩家競爭對手。我們長期以來在可持續且獲利的成長下，為股東創造複合價值。當然，林德的超越表現不僅限於本產業。右側可以看到同一期間我們的 EPS CAGR 與更廣泛的標普 500 指數相比的結果。因此很明顯，我們多年來一直是產業領導者，並且完全預期未來數十年仍將延續這個趨勢。

Our midterm strategy, which is on our next Slide 5, provides a road map on how we plan to get there. Most of you have seen this strategy before. It's fairly straightforward and simple enough that we can summarize it on one page. It starts, of course, with optimizing our base business of industrial gases and engineering. I've said this before, our unique operating rhythm provides a real competitive advantage on how we extract value year in and year out, irrespective of the macroeconomic climate. We've, of course, proven this in the prior recessions and some black swan events, including the most recent COVID pandemic.

我們的中期策略在下一頁投影片第 5 頁，提供了我們如何達成目標的路線圖。各位多數人以前都看過這套策略；它相當直接，也簡單到可以用一頁總結。首先，當然是優化我們的基礎業務——工業氣體與工程。我之前說過，我們獨特的營運節奏在我們如何年復一年萃取價值方面，提供了真正的競爭優勢，不論總體經濟環境如何。我們在過去的衰退與一些黑天鵝事件中已證明這點，包括最近的 COVID 疫情。

So while our resilient business model provides downside protection, we also have the ability to leverage and any economic recovery due to our exposure to the cyclical end markets, primarily here through merchant and packaged gases. Of course, the pricing structure here also helps as it closely correlates with inflation. You've already seen some of that demonstrated in the last few quarters, and I anticipate further upside if the economy continues to recover.

因此，雖然我們具韌性的商業模式提供下行保護，但由於我們曝險於循環性終端市場——主要透過現貨（merchant）與瓶裝（packaged）氣體——我們也有能力在經濟復甦時放大受益。當然，這裡的定價結構也有幫助，因為它與通膨高度相關。各位已在過去幾季看到部分體現；若經濟持續復甦，我預期仍有進一步上行空間。

Finally, we will continue to grow by capitalizing on future opportunities. Linde has demonstrated the highest compound growth rate in the industry across all key financial metrics, and we expect to maintain this distinction. Currently, there are secular growth drivers around 2 of our key markets that comprise about 30% of our sales. These are health care and electronics. You're all familiar with what is happening in the electronic space today.

最後，我們將持續把握未來機會以推動成長。林德在所有關鍵財務指標上都展現出產業最高的複合成長率，我們預期將維持這項領先。目前，在我們兩個關鍵市場周邊存在結構性成長驅動因素，合計約占我們銷售額的 30%。這兩個市場是醫療保健與電子。各位對當前電子領域正在發生的事情都很熟悉。

Our customers are looking to expand production of chips to meet soaring demand while improving and strengthening local supply chain logistics. We are an integral part of this development as industrial gases are a critical component to successfully operating a modern fab today. I fully expect electronics to comprise the largest portion of backlog wins over the next couple of years as we continue to see high levels of interest for new customer builds.

我們的客戶正尋求擴大晶片產能以滿足飆升的需求，同時改善並強化在地供應鏈物流。我們是這項發展不可或缺的一環，因為工業氣體是現代晶圓廠（fab）成功運作的關鍵要素。我完全預期，未來幾年電子產業將占我們在手訂單（backlog）新增案源中最大的比重，因為我們持續看到新客戶建廠的高度興趣。

Furthermore, the health care market continues to grow as well, combination of demographics and trend towards telehealth. As you know, our health care business, particularly the home care business, served as a critical second line of defense during the recent pandemic. And, of course, we expect future trends to create new growth opportunities, allowing us to leverage our leading dense network to support momentum towards a distributed health care market. The combination of these strategic elements should enable us to grow annual earnings per share on average more than 10%. That is something we've demonstrated throughout our history, and we feel confident we can continue for the long term.

此外，醫療保健市場也持續成長，這是人口結構與遠距醫療趨勢共同作用的結果。如各位所知，我們的醫療保健業務，特別是居家照護業務，在近期疫情期間扮演了關鍵的第二道防線。當然，我們預期未來趨勢將創造新的成長機會，使我們能運用領先且密集的網路，支持醫療保健市場走向分散式的動能。這些策略要素的組合，應能使我們的每股盈餘年均成長超過 10%。這是我們歷史上已經證明的能力，我們也有信心能長期延續。

Now you will notice, I said 10% EPS outlook excludes the impact from the transition to clean energy. Currently, we view the benefits from this transition as incremental to our EPS outlook. Clean energy, of course, is a hot topic, as you all know. In fact, I haven't quite realized how many global hydrogen experts there really were until only 6 months ago. However, producing, storing and supplying hydrogen to enable cleaner fuels is something we've been doing for decades. In fact, hydrogen has been one of our fastest-growing molecules over the past 10 years. So given this, I'd like to use the last few slides to provide you a view on the overall clean energy market, explain why Linde is exceptionally well positioned to succeed and share with you our overarching strategy going forward.

各位會注意到，我所提到的 10% EPS 展望不包含潔淨能源轉型的影響。目前我們認為，這項轉型帶來的效益將是對我們 EPS 展望的增量貢獻。潔淨能源當然是熱門議題，各位都知道。事實上，直到 6 個月前我才真正意識到，全球竟然有這麼多氫能專家。不過，為了實現更潔淨燃料而進行氫氣的生產、儲存與供應，是我們數十年來一直在做的事。事實上，氫氣在過去 10 年一直是我們成長最快的分子之一。因此，基於此，我想用最後幾張投影片向各位說明整體潔淨能源市場，解釋為何林德具備極佳的成功定位，並分享我們未來的整體策略。

But before I start, I want to state that we are not providing specific guidance on either expected sales or wins from clean energy at this time. This is a rapidly evolving landscape with many countries taking different paths. So the pace of the transition is just too uncertain to make multiyear detailed projections. However, what I can confirm is that Linde has the experience, the technology and the asset network to be a significant player in the transition.

但在開始之前，我要先說明：目前我們不提供潔淨能源在預期銷售或得標（wins）方面的具體指引。這是一個快速演變的領域，各國採取的路徑也不盡相同，因此轉型速度的不確定性太高，無法做出多年期的細部預測。不過，我可以確認的是，林德具備經驗、技術與資產網路，能在這場轉型中成為重要的參與者。

To further elaborate on this, I'd like to provide you our view of the clean energy market on the next slide, Slide 6. It's safe to say that nobody really knows how the decarbonization market will ultimately play out. So it may be helpful to start with an overview of the potential opportunity. We think of clean energy transition in 2 main pieces. The first being how we can provide solutions to managing carbon and the second relating to clean hydrogen development. Now we already have a number of significant applications that reduce, capture, sequester or clean and monetize gas streams for use. A good example of this is our current carbon dioxide business at about $1.3 billion, serving several key end markets.

為了進一步說明，我想在下一張投影片第 6 頁提供我們對潔淨能源市場的看法。可以說，沒有人真正知道去碳化市場最終會如何發展，因此先從潛在機會的概覽開始可能會有幫助。我們將潔淨能源轉型分為兩大部分：第一是我們如何提供碳管理解決方案；第二是與潔淨氫能發展相關的機會。目前我們已經有多項重要應用，可用於降低、捕捉、封存，或淨化並將氣體流貨幣化以供使用。一個很好的例子是我們目前約 13 億美元的二氧化碳業務，服務多個關鍵終端市場。

Looking ahead, we see more opportunities for our technologies and solutions to enable our customers to reduce their carbon footprint through capture and removal of their emissions. Furthermore, we believe blue and green hydrogen will both play an important role in the transition to cleaner energy. In theory, the total available opportunity can be represented by the current $6 trillion of hydrocarbon market. However, that will be served by a blend of solutions, and it will take years to evolve. So as an example, one estimate assumes clean hydrogen will reach $100 billion by 2030. Or say, roughly 1.5% of today's hydrocarbon market. But time will tell.

展望未來，我們看到更多機會讓我們的技術與解決方案協助客戶透過捕捉與移除排放來降低其碳足跡。此外，我們相信藍氫與綠氫都將在邁向更潔淨能源的轉型中扮演重要角色。理論上，整體可得機會可由目前 6 兆美元的碳氫化合物市場來代表。然而，該市場將由多種解決方案共同服務，且需要多年時間演進。因此舉例而言，有一項估計假設潔淨氫能到 2030 年將達到 1,000 億美元，約相當於今日碳氫化合物市場的 1.5%。但最終仍有待時間驗證。

Given the uncertainty, as I said before, I'm not going to provide you a specific estimate or time line today, but I do want to reiterate that this is a significant opportunity for Linde and something we see as an upside to our base business. So with this as a backdrop, it may be helpful to understand what Linde brings to the table regarding technology, asset network and experience which you can find on the next slide, Slide 7.

鑑於不確定性，正如我先前所說，我今天不會提供具體的估計或時間表，但我確實想再次強調，這對林德而言是一個重大的機會，我們也將其視為相對於我們基礎業務的上行空間。在此背景下，了解林德在技術、資產網路與經驗方面能帶來什麼，可能會有所幫助；相關內容請見下一張投影片，第7頁。

Whether it's production, distribution or application and services, we have over 50 years of experience as an owner and an operator of billions of dollars of hydrogen infrastructure. We are agnostic to how that molecule is made, whether it's through reforming chemistry or by electrolysis. We have the technology and the operating expertise for all of them. Furthermore, we have the largest and the most dense hydrogen distribution network in the world. This will be crucial to ensuring a safe, reliable and cost-effective energy transition.

無論是生產、配送，或是應用與服務，我們作為數十億美元氫能基礎設施的擁有者與營運者，已累積超過50年的經驗。我們不偏好氫分子是如何製造的，無論是透過重整化學反應或電解。我們對所有路徑都具備技術與營運專業。此外，我們擁有全球最大且最密集的氫氣配送網路。這對於確保安全、可靠且具成本效益的能源轉型至關重要。

Our technology, many proprietary applications and extended service capabilities, position us exceptionally well for this opportunity.

我們的技術、眾多專有應用以及延伸的服務能力，使我們在把握此一機會方面具備極佳的優勢。

And finally, we also have the ability to leverage our engineering business to integrate various technologies into solutions and to offer sale of gas or selectively, sale of equipment, providing us a unique competitive advantage.

最後，我們也能運用工程業務，將各種技術整合為解決方案，並提供氣體銷售，或在特定情況下提供設備銷售，從而賦予我們獨特的競爭優勢。

Overall, we have a very long and successful history supporting the transition to clean energy, and I believe we are incredibly well positioned across the entire value chain as this initiative accelerates.

整體而言，我們在支持清潔能源轉型方面擁有非常悠久且成功的歷史；我相信，隨著這項倡議加速推進，我們在整個價值鏈上都具備極佳的布局。

I'd like to wrap up the clean energy discussion on the next slide, Slide 8, with a view of our overarching strategy and give you some key supporting examples as well. The strategy on the left is something we've mentioned before. It represents a proven approach to profitably growing an industrial gas business, including hydrogen. It starts with leveraging a leading integrated asset network. In addition to that, we execute locally market-driven strategies. We believe many of these initiatives will vary by country. We also expect to continue to advance and grow our technology leadership in this space across the value chain by leveraging the expertise of our engineering team as well as developing partnerships that provide us access, insight and hopefully accelerate opportunities.

我想在下一張投影片第8頁，為清潔能源的討論作個總結，從我們的整體策略角度切入，並提供一些關鍵的支持性案例。左側的策略是我們之前提過的，代表一套經驗證、可獲利地成長工業氣體業務（包括氫能）的做法。其起點是善用領先的一體化資產網路。除此之外，我們也在各地執行由市場驅動的在地策略。我們相信，許多倡議會因國家而異。我們也預期將持續推進並擴大在此領域、橫跨價值鏈的技術領導地位，透過運用工程團隊的專業，以及建立夥伴關係，為我們帶來資源與洞見，並希望加速機會的落地。

Now on the right-hand side of the slide, you'll see 3 projects we recently announced. I just want to remind you that these are part of our base CapEx and, therefore, not included in the $3.5 billion backlog. Now these projects are over $350 million for green and blue hydrogen infrastructure in South Korea, Germany and the United States. Just to pick on the example in South Korea. We are partnering with one of the largest industrial conglomerates to build out a liquid hydrogen infrastructure to fuel municipality buses there.

在投影片右側，您會看到我們近期宣布的3個專案。我想提醒各位，這些屬於我們的基礎資本支出（base CapEx）的一部分，因此未納入35億美元的在手訂單（backlog）。這些專案合計超過3.5億美元，涵蓋韓國、德國與美國的綠氫與藍氫基礎設施。以韓國為例，我們正與當地最大的工業集團之一合作，建置液態氫基礎設施，為當地市政公車提供燃料。

We continue to evaluate a significant and growing number of opportunities from large megaprojects to very small ones. But irrespective of the size of the opportunity, we will always maintain our disciplined approach to pursuing projects that meet our investment criteria. This summarizes our midterm strategy and how we currently see the clean energy market. But this is something I'll provide more updates on in the future as it continues to evolve.

我們持續評估數量可觀且不斷增加的機會，從大型超級專案到非常小的專案都有。但無論機會規模大小，我們都會一貫維持嚴謹的方式，只追求符合我們投資標準的專案。以上總結了我們的中期策略，以及我們目前對清潔能源市場的看法。隨著市場持續演進，未來我也會提供更多更新。

Now before I hand over to Matt, I want to make one final point on our ESG initiatives. Simply said, ESG is embedded in our culture. It's part of our operating rhythm and it's part of our compensation philosophy. It has been an integral part of our values and forms the foundation of Linde's mission statement, making our world more productive.

在我把時間交給Matt之前，我想就我們的ESG倡議再補充最後一點。簡而言之，ESG已深植於我們的文化之中；它是我們營運節奏的一部分，也是我們薪酬理念的一部分。它一直是我們價值觀不可或缺的一環，並構成林德使命宣言「讓世界更具生產力」的基礎。

I'm pleased to say we are currently tracking ahead in many of the initiatives we laid out in early 2020, including carbon emission intensity reduction and increasing gender diversity, but this isn't enough. We know we need to do more. We are therefore in the process of thoughtfully developing more ambitious ESG goals, which I expect to share with you in a future call. But until then, you can be certain that we will continue to improve our performance in this area. So with that, I'd now hand over to Matt, who will take you through the financial results and our guidance. Matt?

我很高興地表示，我們目前在2020年初提出的多項倡議上進度超前，包括降低碳排放強度以及提升性別多元性，但這仍不夠。我們知道需要做得更多。因此，我們正審慎制定更具企圖心的ESG目標，並預期在未來的電話會議中與各位分享。在此之前，您可以確信我們將持續改善在這方面的表現。那麼，接下來我把時間交給Matt，他將帶各位回顧財務結果與我們的指引。Matt？

Thanks, Sanjiv. Please turn to Slide 9 for an overview of the first quarter results. Before I jump into the numbers, I'd like to remind you that we deconsolidated a joint venture in APAC, which reduces sales and operating profit by about 3% but has no effect on EPS since we are maintaining a consistent ownership position. This deconsolidation is shown as a divestiture, and we provide further details in the APAC segment results, which you can find in the appendix.

謝謝你，Sanjiv。請翻到第9頁，查看第一季業績概覽。在我進入數字之前，我想提醒各位，我們已對亞太地區（APAC）的一家合資企業進行去合併（deconsolidated），這會使銷售額與營業利益各減少約3%，但由於我們維持一致的持股比例，因此對每股盈餘（EPS）沒有影響。這項去合併在會計上列示為處分（divestiture），我們在APAC分部業績中提供了更多細節，您可在附錄中找到。

Total sales grew 7% from last year and were flat sequentially. Underlying sales increased 5% from prior year and 2% sequentially. Volumes continue to recover, growing 3% over last year and 1% over the fourth quarter. Sequentially, negative seasonal effects and temporary outages in the U.S. Gulf Coast from Storm Uri were more than offset by a broad-based increase in volumes. Industrial production levels have consistently risen in most geographies, which supports volume recovery in the packaged and merchant supply modes. And note that while Uri had a temporary negative effect on sales for the first quarter, profit impact was immaterial due to our contractual structure.

總銷售額較去年成長7%，與前一季相比持平。基礎銷售（underlying sales）較去年增加5%，較前一季增加2%。銷量持續復甦，較去年成長3%，較第四季成長1%。就季比而言，美國墨西哥灣沿岸因冬季風暴Uri造成的負面季節性影響與短暫停工，已被各領域普遍的銷量增加所抵銷。多數地區的工業生產水準持續上升，支撐瓶裝與商用（packaged and merchant）供應模式的銷量復甦。另請注意，雖然Uri對第一季銷售造成短期負面影響，但由於我們的合約結構，對獲利的影響並不重大。

Referring to our end market trends in the appendix, every end market grew sequentially and over prior year, except for food, mostly due to restaurant closures and seasonality in GIST, our distribution business in the U.K.

參考附錄中的終端市場趨勢，除食品外，所有終端市場不論季比或年比皆呈成長；食品主要受到餐廳關閉以及我們在英國的配送業務GIST之季節性因素影響。

Pricing improvements of 2% is in line with globally weighted inflation, since the majority of our contracts have mechanisms in place to adjust for local cost inflation. Operating profit increased 25% over prior year from a combination of higher pricing, incremental volumes and a lower cost base. Furthermore, operating margins expanded 320 basis points, which marks the seventh consecutive quarter that we have expanded operating margins more than 200 basis points. EPS of $2.49 grew 32% from last year and 8% sequentially. You can see the wider than normal growth rate differential between operating profit and EPS, which is mostly driven by the joint venture deconsolidation. We had another strong quarter in capital management, with operating cash flow up 57% and return on capital reaching 14.5%.

2%的價格改善與全球加權通膨一致，因為我們大多數合約都設有機制，可因應當地成本通膨進行調整。營業利益較去年增加25%，主要來自更高的定價、增量銷量以及較低的成本基礎。此外，營業利益率擴張320個基點，這是我們連續第七個季度營業利益率擴張超過200個基點。每股盈餘（EPS）為2.49美元，較去年成長32%，較前一季成長8%。您會看到營業利益與EPS之間的成長率差異較以往更大，主要由合資企業去合併所驅動。我們在資本管理方面也再度交出強勁的一季：營運現金流成長57%，資本報酬率（ROC）達到14.5%。

ROC levels have been trending well as we continue to grow earnings by double-digit percent while maintaining a disciplined and focused capital allocation process.

隨著我們在維持嚴謹且聚焦的資本配置流程下，持續以兩位數百分比成長獲利，ROC水準的趨勢表現良好。

CapEx is down 5% from prior year as temporary declines in project backlog spending more than offset increases in growth projects categorized as base CapEx. Approximately 40% of base CapEx is for growth, including the clean energy projects Sanjiv mentioned as well as the majority of small on-site wins we announced yesterday.

資本支出（CapEx）較去年下降5%，因專案在手訂單支出暫時下滑的幅度，超過被歸類為基礎資本支出（base CapEx）的成長專案增加幅度。基礎資本支出中約40%用於成長，包括Sanjiv提到的清潔能源專案，以及我們昨天宣布的大多數小型現場供氣（on-site）得標案。

Overall, these results clearly validate our positive leverage to the economic recovery while offering significant downside protection as evidenced in 2020. Slide 10 provides an update on our capital management process. It starts with cash generation, which you can see on the left side. Linde employees have done a great job focusing on cash conversion and thus making more capital available for the company to deploy.

整體而言，這些結果清楚驗證了我們對經濟復甦具備正向槓桿，同時也提供顯著的下行保護，正如2020年所展現的。第10頁提供我們資本管理流程的更新，起點是現金創造，您可在左側看到。林德員工在聚焦現金轉換方面做得非常出色，因此讓公司有更多資本可供運用。

Available operating cash flow, which we define as operating cash flow less base CapEx, has exceeded $1.5 billion for the last 2 quarters. And while we continue to generate healthy levels of cash, how we spend it is equally important, which is shown on the right half of the slide.

可用營運現金流（available operating cash flow），我們定義為營運現金流扣除基礎資本支出（base CapEx），在過去兩個季度均超過15億美元。雖然我們持續產生健康水準的現金，但如何使用同樣重要，這點呈現在投影片右半部。

Our capital allocation process is simple and consistent. We have a mandate to maintain an A credit rating and raise the dividend every year. After which, our priority is to invest in growth that meets our criteria. And then any leftover cash is used for stock repurchases. The pie chart represents how we spent the first quarter operating cash, investing $0.8 billion to grow and returning $1.4 billion to shareholders. This approach provides balance, but more importantly, forms the foundation of the strategy and earnings outlook provided by Sanjiv.

我們的資本配置流程簡單且一致。我們的任務是維持A級信用評等，並且每年提高股利。之後，我們的優先事項是投資符合我們標準的成長。最後，任何剩餘現金則用於股票回購。圓餅圖呈現我們第一季營運現金的使用方式：投入8億美元用於成長，並向股東回饋14億美元。這種做法提供了平衡，但更重要的是，它構成Sanjiv所提出策略與獲利展望的基礎。

I'll wrap up with guidance, which you can find on Slide 11. The second quarter guidance range is $2.50 to $2.55. The midpoint represents an increase of 33% over 2020 and 38% over 2019. I believe it's important to provide the 2019 comparison to properly distinguish between true growth, which this demonstrates, from mere recovery which other companies may be showing. This guidance includes an estimated year-over-year FX tailwind of 4% since Q2 of 2020 was the low point on foreign currency weakness.

最後我以指引作結，請見第11頁。第二季指引區間為2.50至2.55美元。中位數相較2020年增加33%，相較2019年增加38%。我認為提供2019年的比較很重要，因為這能更清楚區分真正的成長（本指引所展現的），與其他公司可能呈現的單純復甦。此指引包含估計年比4%的匯率順風（FX tailwind），因為2020年第二季是外幣走弱的低點。

Sequentially, this range assumes stable economic conditions with a moderate improvement related to normal seasonality. In other words, the Q2 guidance range does not assume any improvement in the underlying economy from Q1. Note that preliminary April results came in better than our internal estimates. So if these conditions persist, Q2 EPS would be at the upper end or above this range. The updated full year guidance range is $9.60 to $9.80 or $0.50 higher than what we provided last quarter. The midpoint of the range is 18% above 2020 and 32% above 2019.

依序而言，這個區間假設經濟狀況穩定，並伴隨與正常季節性相關的溫和改善。換言之，第二季（Q2）指引區間並未假設相較第一季（Q1）基本面經濟有任何改善。請注意，4 月初步結果優於我們的內部預估。因此，若這些條件持續，Q2 每股盈餘（EPS）將落在此區間的上緣或高於此區間。更新後的全年指引區間為 9.60 至 9.80 美元，較我們上季提供的指引上調 0.50 美元。該區間中點較 2020 年高 18%，較 2019 年高 32%。

I'd like to explain how we approached full year guidance especially as it relates to the half year comparisons. At this point, we have updated full year for the better performance in Q1 and the latest Q2 outlook of which this first half year combined was approximately $0.50 better.

我想說明我們如何制定全年指引，特別是與上下半年比較相關的部分。在此時點，我們已因 Q1 表現較佳以及最新的 Q2 展望而更新全年指引；合計上半年約較原先好 0.50 美元。

However, we have not updated the second half guidance. In other words, we left the second half alone until we get a better sense of the recovery pace. Rest assured, we will capture any improvement in the economy as we have recently demonstrated. Furthermore, we will provide a more detailed update next quarter. However, today, we are refraining from adjusting the back half until we get more visibility. Of course, if economic conditions hold or improve, we will be above this full year range. But for now, we believe this is the most prudent approach given the global uncertainty. I'd now like to turn the call over for Q&A.

然而，我們尚未更新下半年的指引。換言之，在我們對復甦速度有更清楚的掌握之前，我們先維持下半年不變。請放心，我們會如同近期所展現的那樣，將任何經濟改善反映進來。此外，我們將在下季提供更詳細的更新。不過今天，在能見度更高之前，我們暫不調整下半年。當然，若經濟狀況持平或改善，我們將高於此全年區間。但就目前而言，鑑於全球不確定性，我們認為這是最審慎的做法。接下來我想把電話交給問答環節。

(Operator Instructions) And our first question comes from Bob Koort from Goldman Sachs.

（接線員指示）我們的第一個問題來自高盛（Goldman Sachs）的 Bob Koort。

I appreciate the comments, Sanjiv, on the hydrogen markets and obviously, a lot of uncertainties how it all develops. I was curious, you put forth maybe an implied green hydrogen price in the future that's still 2 to 3x the price of gray hydrogen. And I'm just curious, do you think the world is going to need some carbon tax or some other ways to incentivize adoption of green hydrogen? How do you sort of see that developing?

Sanjiv，感謝你對氫能市場的評論；顯然其發展仍有許多不確定性。我好奇的是，你提出未來可能隱含的綠氫價格仍是灰氫的 2 到 3 倍。我想請教，你認為全球是否需要某種碳稅或其他方式來激勵綠氫的採用？你怎麼看這會如何發展？

Thanks, Bob. That's a great question. I'm sure a lot of people are discussing that very fact as we speak, Bob. So you're absolutely right. Today, we do see that differential between green hydrogen to gray and blue hydrogen. Obviously, blue hydrogen somewhere in the middle, providing a more immediate scalable option. But green hydrogen, for it to kind of get to a point of inflection where adoption really happens, essentially, 3 things need to happen.

謝謝你，Bob。這是個很好的問題。我相信此刻很多人也正在討論這件事，Bob。所以你完全正確。就目前而言，我們確實看到綠氫相對灰氫與藍氫之間存在價差。顯然，藍氫介於兩者之間，提供更即時且可擴展的選項。但綠氫若要到達一個採用真正發生的拐點，基本上需要三件事同時發生。

The first, regulators across the world need to get to a view on what carbon tax, what carbon pricing or other mechanisms that create that incentive to go and do something about it are put in place. We can talk about what that range might look like, if you like. But that's a necessity. The second is, you've got to see the technology evolve and get down to a point where you're seeing significant reduction in costs. There are 2 costs for green hydrogen, as you're well aware, Bob. One is obviously renewable energy becoming cheaper. I know there's a lot of work happening in that space.

第一，全球各地的監管機構需要就碳稅、碳定價或其他能創造誘因、促使採取行動的機制形成共識。若你願意，我們也可以討論那個區間可能長什麼樣子。但這是必要條件。第二，你必須看到技術演進，並降到能帶來顯著成本下降的程度。你很清楚，Bob，綠氫有兩項成本：其一當然是再生能源變得更便宜。我知道這方面正在進行大量工作。

And equally, we're doing a lot of work on the second option, which is about making sure that our planned CapEx comes down. So working through ITM on the PEM option as an example, but also making sure that efficiencies around that, the membranes improve sufficiently to give us a little bit of lift there as well. So all of those 3 things need to happen, Bob, for really adoption to happen, the inflection point that I referenced earlier on.

同樣地，我們也在第二項上投入大量工作，也就是確保我們規劃的資本支出（CapEx）下降。以 PEM 方案為例，我們正與 ITM 一起推進，同時也確保相關效率提升，例如膜材料（membranes）有足夠改善，讓我們在這方面也能獲得一些提升。因此，Bob，這三件事都需要發生，採用才會真正出現，也就是我先前提到的那個拐點。

Our next question comes from P.J. Juvekar from Citi.

下一個問題來自花旗（Citi）的 P.J. Juvekar。

Yes. First of all, I want to thank you and give a shout out to your employees in India who helped tremendously in getting oxygen to hospitals during this tragic situation. So, thank you there. And then my question is, as commodity prices go up for all kinds of commodities, with strong demand in metals and chemicals and general manufacturing, if your customers are seeing inflation, is it -- does it help you to get price as well from those customers? And then your pricing in Americas seems to have accelerated in 1Q compared to last few quarters. So can you just talk about this pricing dynamic?

是的。首先，我想感謝你，並特別向你們在印度的員工致意，他們在這個悲劇性的情況下，對於將氧氣送到醫院提供了極大的協助。謝謝你們。接著我的問題是，隨著各類大宗商品價格上漲，金屬、化學品以及一般製造業需求強勁，如果你的客戶正面臨通膨，這是否也有助於你向這些客戶取得更高的價格？另外，你們在美洲的定價在第一季（1Q）相較過去幾季似乎加速了。你能談談這個定價動態嗎？

Thanks, P.J. So I appreciate that shout out. And with family in India, I'm kind of acutely aware of how challenging the situation is there. I want to take maybe just a couple of minutes, P.J., before I get to your question to just talk briefly about how proud we are over here on our team in India who are currently working round the clock to support hospitals, patients, saving lives. Everything they do, it's kind of focused on that. The teams also kind of reworked their whole operating philosophy to produce more than 3,000 tonnes per day of medical oxygen. That's almost tenfold of what we were producing and delivering just 4 weeks ago.

謝謝你，P.J. 我很感謝你的致意。我在印度也有家人，因此我非常切身地了解那裡的情況有多艱難。在回答你的問題之前，我想先花一兩分鐘簡要談談我們對印度團隊的自豪：他們目前日以繼夜地工作，支援醫院與病患、拯救生命。他們所做的一切幾乎都以此為核心。團隊也重新調整了整體營運理念，把醫用氧的產量提升到每天超過 3,000 公噸。這幾乎是我們在 4 週前生產並交付量的近十倍。

So a huge amount of work has gone in there. We've deployed about 1,200 drivers on the road, serving about 1,000 hospitals in the country. There's been phenomenal work being done on that. I thought it's appropriate that I just take a moment to kind of cover that. Of course, being a global corporation, Linde globally has been able to help as well. We've air lifted 40-plus ISO containers. They are now helping the supply chains in the country and another 40 to go in the days ahead. Governments have obviously taken on many of our ideas. You've seen the Oxygen Express that's going around India.

因此，這背後投入了非常大量的工作。我們已部署約 1,200 名司機在路上運輸，服務全國約 1,000 家醫院，成果非常卓著。我認為我應該花點時間說明這些。當然，作為一家全球性企業，林德（Linde）在全球也能提供協助。我們已空運超過 40 個 ISO 貨櫃；它們現在正在協助該國的供應鏈，未來幾天還會再運送 40 個。各國政府也顯然採納了我們許多想法。你們也看到在印度運行的 Oxygen Express。

Also, that's something that we've helped put in place and using the armed forces, in many cases, to move oxygen across various locations in the country. So a country in deep, deeply challenging situation, but we're doing all we can as is appropriate. I also want to just maybe quickly add a quick word of appreciation for our teams in Brazil, Mexico, other Lat Am countries. Obviously, they didn't get the same kind of press. But the reality is they were faced with similar challenges and have done enormously good work to support hospitals and patients.

此外，那也是我們協助建立的措施之一，並在許多情況下動用武裝部隊，將氧氣在全國各地之間運送。因此，這個國家正處於非常、非常艱難的情勢，但我們正盡一切所能、以合宜的方式提供協助。我也想快速補充一句，感謝我們在巴西、墨西哥及其他拉丁美洲國家的團隊。顯然他們沒有獲得同樣程度的媒體關注，但事實是他們面臨類似挑戰，並且為支援醫院與病患做了極其出色的工作。

So I'm really proud that our teams across the world are doing their bit to support our communities through this pandemic. Now P.J., I'm going to kind of more specifically talk to your question on inflation. And our view on inflation, as you know, we price to a weighted average on inflation typically. And as we think about inflation, our kind of natural conclusion there is that we will see prices going up as inflation happens.

因此，我非常自豪我們全球各地的團隊都在盡一份心力，支持社區度過這場疫情。現在，P.J.，我將更具體回到你關於通膨的問題。我們對通膨的看法是：如你所知，我們通常會依通膨的加權平均來定價。當我們思考通膨時，我們自然的結論是，隨著通膨發生，我們將看到價格上升。

And we are -- as you know, have a great track record of being able to do that consistently. In fact, even when inflation wasn't quite there, you've seen us perform on our pricing. Our history on pricing is positive if you go back 20 years as well. And that's kind of the DNA that the team carries to move forward on the pricing piece. So fully expect to see that happening as inflation does come into play.

而且如你所知，我們在持續做到這一點方面有非常好的紀錄。事實上，即使通膨並不明顯，你也看到我們在定價上仍有表現。若回顧 20 年，我們的定價歷史也是正向的。這也是團隊在推動定價工作時所秉持的 DNA。因此，隨著通膨開始發揮作用，我們完全預期會看到這種情況發生。

And P.J., this is Matt. I may just add one or 2 things to what Sanjiv said. I think as a reminder, as you well know, any commodity cost or inputs we have, we pass all them through. That's contractual. And then the only second thing I'd add is what we've seen in these patterns before -- and 2011 is a good example, I'd say 2006, '07 are a good example and even 2016, when you do see some rebound in commodities, our customers' volumes tend to increase a lot.

P.J.，我是 Matt。我想在 Sanjiv 的說法上再補充一兩點。我想提醒一下，如你非常清楚的，我們任何大宗商品成本或投入成本都會全數轉嫁出去。這是合約條款。第二點我想補充的是，我們過去也看過這種模式——2011 年是個好例子，2006、2007 年也是好例子，甚至 2016 年也是——當你確實看到大宗商品反彈時，我們客戶的出貨量往往會大幅增加。

Their consumption of gases also tends to go up. So we'll see to what extent you can see that as well. I mean we're starting to see parts of it. But that also tends to be a positive tailwind with just overall industrial activity.

他們對氣體的消耗量也往往會上升。因此我們也會觀察這在多大程度上會出現。我是說，我們已開始看到其中一部分。但這也往往會成為整體工業活動的正面順風。

Our next question comes from Tony Jones from Redburn.

下一個問題來自 Redburn 的 Tony Jones。

I wanted to ask about margins, and there are 2 parts to the question. So first, you reported margins, which continue to surprise. We've got 100 basis points or so with sequential improvement. I wanted to just ask, is this now a sustainable level? I know you call out the deconsolidation effect, but are there any temporary gains we need to adjust for with OpEx down now around $2 billion? And then the second part of it, and maybe it's more important, is this as good as it gets? Or do you think there's further potential for margins to improve as you get further product improvements over time?

我想問關於利潤率的問題，分成兩個部分。第一，你們公布的利潤率持續帶來驚喜，序列上改善約 100 個基點左右。我想請教，這是否已是可持續的水準？我知道你們提到去合併（deconsolidation）的影響，但目前營業費用（OpEx）降到約 20 億美元左右，是否有任何我們需要調整的暫時性收益？第二部分，也許更重要的是：這是否已經到頂了？還是你認為隨著時間推進、產品改善進一步落實，利潤率仍有進一步提升的空間？

Tony, this is Matt. I could probably handle that and see if Sanjiv has any other input. So I think on the margins going up, yes, absolutely, we see it as sustainable. There's nothing temporary. And just to confirm, the deconsolidation had no effect on margins. Even if you look at the APAC in the appendix where we show kind of the effect, you can see the margins are pretty much the same. So the deconsolidation had no effect. And again, I'm referring to operating margins, obviously, as well here, operating profit.

Tony，我是 Matt。我應該可以處理那個問題，也看看 Sanjiv 是否還有其他補充。所以關於毛利率上升，是的，絕對，我們認為這是可持續的。沒有任何暫時性的因素。再確認一下，去合併對利潤率沒有影響。即使你看附錄裡我們展示 APAC 影響的部分，你也可以看到利潤率幾乎是一樣的。所以去合併沒有影響。而且我這裡指的當然也是營業利潤率、營業利益。

So we absolutely see it as sustainable. This is something that -- this is the hard work that everyone in the world is doing. This is about putting together quality business and making sure we run it efficiently and effectively. And as far as, as good as it gets, we get asked that question every quarter. But I would say this, and I've said it before, just look at the segments, right? When you look at the geographic segments of Americas, EMEA and APAC, there's nothing that is fundamentally different between those 3 segments. We do the same thing. It is a very homogeneous business.

所以我們絕對認為這是可持續的。這是——這是全球每個人都在做的辛苦工作。這關乎打造高品質的業務，並確保我們以高效率、有效率的方式運營。至於是否已經到頂、是否已經是最好狀態，我們每一季都會被問到這個問題。但我會這麼說，我以前也說過：看看各個分部，對吧？當你看美洲、EMEA 和 APAC 這三個地理分部時，這三個分部之間沒有任何根本性的差異。我們做的是同樣的事情。這是一個非常同質化的業務。

They supply across all 3 supply modes. They have end market distributions that aren't drastically different. So that kind of defines what the opportunity set is. And if you go back to 2018, Americas was 23%, EMEA was 17%. Now EMEA is over 25% and America is 28%. So you're seeing the improvement across the board, APAC as well, almost 25%, was 17%. This is part of what we're doing to run this business, and I don't see any temporary aspect. And I would say whichever segment is leading is kind of showing the way.

他們涵蓋三種供應模式的供應。他們的終端市場分布也沒有顯著不同。因此，這基本上界定了機會集合。如果你回到 2018 年，美洲是 23%，EMEA 是 17%。現在 EMEA 超過 25%，美洲是 28%。所以你看到全面性的改善，APAC 也是，接近 25%，之前是 17%。這是我們經營這門業務的一部分，我看不到任何暫時性的因素。我也會說，哪個分部領先，某種程度上就是在示範方向。

The only thing that I'd add is actually both EMEA and APAC are heading for that Americas margin, right? They're pretty competitive guys out there.

我唯一想補充的是，其實 EMEA 和 APAC 都正朝著美洲的利潤率水準前進，對吧？外面競爭對手都很強。

Our next question comes from Nicola Tang from Exane BNP Paribas.

我們的下一個問題來自 Exane BNP Paribas 的 Nicola Tang。

First, I wanted to ask a little bit about the second half outlook. I know we completely hear you on sort of the volume assumption or the sort of lack of volume assumption, I suppose. But if I look at how you've guided, it sort of implies an H2 EPS growth of only about 5% versus, I don't know, 30-plus in the first half, which I was just thinking it seems a bit aggressive just thinking about the productivity gains that you just talked about and support from the buyback, I guess, even the FX tailwinds before you even think about volumes.

首先，我想稍微問一下下半年展望。我知道我們完全理解你們對於銷量假設、或者說缺乏銷量假設的看法。但如果我看你們的指引，它似乎意味著下半年 EPS 年增只有大約 5%，相較之下，上半年可能是 30% 以上。我在想，考慮到你們剛談到的生產力提升，以及回購帶來的支撐，甚至在還沒考慮銷量之前就有的匯率順風，這樣看起來似乎有點保守。

So I was just wondering if there was anything I was missing there in terms of the H2 versus H1 dynamics on a year-on-year basis? And then the second question is on the other H2 on hydrogen. Thanks a lot for that detail on clean energy. Actually, again, I hear you in terms of the timing being uncertain and some of the opportunities being long dated.

所以我想知道，在下半年相對上半年、以年對年來看，是否有什麼我漏掉的動態？第二個問題是關於另一個 H2——氫能。非常感謝你們對清潔能源的詳細說明。其實我也理解你們所說時點不確定，以及部分機會的期限較長。

But when you look at those pipeline of projects that you're sort of evaluating, in which part of the sort of value chain in hydrogen are you seeing the most project proposals at the moment? Is it broad-based across the sort of production and the distribution and fueling end? Or is it in a specific kind of activity?

但當你們看正在評估的那些專案管線時，目前在氫能價值鏈的哪一段看到最多的專案提案？是涵蓋生產、配送與加氫端的廣泛分布？還是集中在某一類特定活動？

Okay. Nicola, it's Matt. I can take the first one, and Sanjiv will take the second. So as I mentioned in the pre remarks, we really -- we just didn't touch it. Obviously, there's a lot of companies not even giving guidance today. We have a very high degree of confidence in what we're laying out and that we can deliver on that. But as far as the second half right now, we felt we would just leave it alone, adjust the year for what we've demonstrated and our view on Q2.

好的。Nicola，我是 Matt。我先回答第一個，第二個由 Sanjiv 回答。正如我在開場說明中提到的，我們確實——我們沒有去動它。顯然，現在很多公司甚至都不提供指引。我們對我們提出的內容以及能夠達成它有非常高的信心。但就目前的下半年而言，我們覺得先維持不變，根據我們已經展現的表現以及我們對第二季的看法來調整全年。

But rest assured, 3 months from now, we will update that back half. And as I mentioned, if conditions hold, well, then, yes, we're going to do better than this. Obviously, if they improve, we could also do better. But for now, we just felt we'll take it kind of quarter-by-quarter, a little bit of a wait-and-see approach. And therefore, I wouldn't really look into too much other than that on the second half at this point.

但請放心，三個月後我們會更新下半年的展望。而且如我所說，如果環境條件維持不變，那麼，是的，我們會做得比這個更好。當然，如果條件改善，我們也可能做得更好。但目前我們只是覺得先採取按季檢視、稍微觀望的方式。因此，現階段我不會對下半年做過多解讀，除了這些之外。

Thanks, Matt. And Nicola, now moving on to the exciting H2 part of the question that you asked. So let me just take a step back and give you a sense of the projects we're looking at and then dive a little bit deeper and tell you where we see some of that kind of buildup that you were asking about. So we're evaluating at the moment between 210 to 220 opportunities individually. Some, as I mentioned, some very large megaprojects and down to the smaller ones as well.

謝謝你，Matt。Nicola，接著來到你問的令人興奮的 H2（氫能）部分。我先退一步，讓你了解我們正在看的專案概況，然後再深入一點，告訴你我們在哪裡看到你所問的那種累積動能。目前我們正在個別評估大約 210 到 220 個機會。如我提到的，有些是非常大型的超級專案，也有較小的專案。

And we see, obviously, many of them progressing, some maybe not. And there'll be others that we will probably not want to do because they don't meet our investment criteria, so we'll be kind of selective about that as well. Now we see that spread focused in 2 specific areas primarily. I think mobility driving a lot is kind of well ahead, if you like, in its development. And then carbon capture and sequestration picking up, particularly in geographies which have oil and gas assets and, therefore, want to understand how best to manage the energy transition through this piece.

而且我們看到其中許多正在推進，有些可能不會。也會有一些我們可能不想做，因為它們不符合我們的投資標準，所以我們也會有所選擇。現在我們看到這些機會主要集中在兩個特定領域。我認為交通運輸（mobility）帶動的部分，在發展上如果你願意這麼說，是相對領先的。另一個是碳捕捉與封存（CCS）正在升溫，特別是在擁有油氣資產的地區，因此希望了解如何透過這一塊來更好地管理能源轉型。

To your exact point on which part of the value chain we see, I think in mobility, it tends to be a little bit of a balance between what we see around production versus distribution and dispensation. We have technologies across the entire value chain. So in many ways, we are really fortunate to have the ability to kind of be able to provide that holistic solution to our potential customers. On CCS, obviously, it tends to be a lot more on the production side, which is where the blue hydrogen piece, in particular, as a consequence of CCS, comes into play. I hope that gives you enough color to what you were asking for, Nicola.

針對你問的價值鏈哪一段，我認為在交通運輸領域，我們看到的通常是在生產端與配送及加注（dispensation）端之間相對平衡。我們在整個價值鏈都有技術。因此在很多方面，我們很幸運能夠提供給潛在客戶一個更整體的解決方案。在 CCS 方面，顯然更多是在生產端，這也是藍氫（blue hydrogen）這一塊，特別是因為 CCS 的關係而發揮作用的地方。希望這能提供你所需要的背景說明，Nicola。

Yes. Absolutely. That's great. Thank you.

是的，完全可以。非常好，謝謝。

Our next question comes from David Begleiter from Deutsche Bank.

我們的下一個問題來自德意志銀行的 David Begleiter。

On the same point, just on -- you're looking at your project CapEx going forward, how much is focused on clean energy and/or hydrogen this year? And how do you think that will trend or increase over the next perhaps 3 to 5 years?

延續同一點，關於你們未來的專案資本支出（CapEx），今年有多少是聚焦在清潔能源和／或氫能？你們認為在接下來大概 3 到 5 年，這會如何變化或增加？

David, this is Matt. So I think right now, there's very little to any. And as we mentioned in the prepared remarks, most of the clean energy are in the base CapEx. So those 3 projects we highlighted are all base CapEx. And to Sanjiv's point, you're seeing a lot in either areas of mobility. This is more distribution assets or assets around the density that we're building in certain areas. So that is something that when they do come into the backlog, obviously, we'll note that. But at this point, the vast majority of what we're doing right now is part of that growth in the base CapEx.

David，我是 Matt。我認為目前幾乎沒有或非常少。正如我們在事先準備的發言中提到的，大多數清潔能源都包含在基礎資本支出（base CapEx）裡。所以我們強調的那 3 個專案全部都是 base CapEx。也呼應 Sanjiv 的觀點，你會在交通運輸等領域看到很多，這更多是配送資產，或是我們在某些區域建立密度所需的相關資產。所以當它們進入訂單積壓（backlog）時，我們當然會指出來。但就目前而言，我們現在做的大部分都屬於 base CapEx 的成長部分。

Very good. And just on merchant pricing, how much merchant pricing are you realizing this year? And given the inflation we're seeing overall, will that -- should that be increasing over the next few quarters going forward?

很好。再問一下現貨（merchant）定價，今年你們實現了多少現貨定價？考慮到我們看到整體通膨，未來幾季這是否——是否應該會增加？

So David, on merchant pricing, we're kind of seeing low to mid-single digits in -- across the different markets that we talk about typically. Americas and EMEA tend to lead, as you've seen from their pricing numbers, and APAC is a little bit behind. But they are hearing this call and they know that I'm looking to them to show some improvement sequentially in the next quarter as well.

David，關於現貨定價，我們在——我們通常談到的各個市場中，大致看到低到中個位數的漲幅。美洲與 EMEA 往往領先，正如你從它們的定價數字所看到的，而 APAC 稍微落後一些。但他們也在聽這通電話，他們知道我也期待他們在下一季能夠呈現一些按季改善。

So we're kind of seeing across the board pricing kind of move up. Now your point on inflation, I think I mentioned this earlier as well, David. With inflation, our pricing will go up. That's been traditionally how we've seen our pricing move. And we are well prepared and there are -- there is enough conversation within the organization already in terms of how we will be managing that. So I'd expect to see with inflation, pricing continue to move in line.

所以我們大致看到各地的定價都在上升。至於你提到的通膨，我想我之前也提過，David。隨著通膨，我們的定價會上升。傳統上我們一直看到定價就是這樣變動的。我們也已經做好充分準備，而且組織內部已經有足夠的討論，關於我們將如何管理這件事。因此我預期在通膨之下，定價會持續同步上行。

Our next question comes from Duffy Fischer from Barclays.

我們的下一個問題來自 Barclays 的 Duffy Fischer。

I wanted to just follow up on that one, if I could. The pricing in APAC, in particular, has kind of been flat at 1% for the last 4 quarters, even though at the beginning of that period, volumes were kind of down 9% and now they're up 10%. And I understand it's not a commodity business. But generally, when you're getting that kind of volume increase, asking for price gets a little bit easier.

我想如果可以的話，就那一點再追問一下。亞太地區（APAC）的定價，特別是，在過去 4 個季度大致維持在 1% 持平，儘管在那段期間一開始，量大概下滑 9%，而現在則上升 10%。我也理解這不是大宗商品生意。但一般來說，當你看到這種量的增加時，要求漲價會稍微容易一些。

Is there something offsetting your ability to get price there where maybe somebody who owns their own oxygen units is dumping more on the market as they're ramping up their steel production or something like that? So how should we think about APAC pricing in particular, given the strong volumes we're seeing there?

是否有什麼因素在抵銷你們在那邊取得漲價的能力？例如某些擁有自有製氧裝置的業者，隨著鋼鐵產量拉升而把更多氧氣傾銷到市場之類的？因此，鑑於我們在那裡看到的強勁量能，對於 APAC 的定價，特別是，我們應該如何看待？

Duffy, thanks for the question. I'm glad you asked it because my APAC team will be listening to this as well. So there is nothing structurally different that should fundamentally change the pricing targets that we've handed out to our teams over there. The market is a little bit different in terms of the distributor kind of model that is in some of the larger geographies over there.

Duffy，謝謝你的問題。我很高興你問到，因為我的 APAC 團隊也會在聽這段。所以，沒有任何結構性的不同，會從根本上改變我們交付給那邊團隊的定價目標。那邊的市場在某些較大的地理區域，分銷商模式方面確實有些不同。

And in some cases, the level of on-site we have. But putting that aside for a moment, our view is pricing in APAC should hit the 2% target that we have as a corporation. And at the moment, I see progress happening. The 1% is disappointing. They know that. And my expectation is, sequentially, we'll see at least a 1% improvement in Q2, and I'm hoping to see 2% year-on-year in Q2 as well. So nothing -- there is nothing holding them back from that.

另外在某些情況下，我們的現場供氣（on-site）占比也不同。但先把這些放一邊，我們的看法是，APAC 的定價應該達到我們公司層級 2% 的目標。目前我看到正在取得進展。1% 的確令人失望，他們也知道。我的預期是，按季來看，我們在第二季至少會看到 1% 的改善，而我也希望在第二季看到年增 2%。所以沒有什麼——沒有任何事情在阻礙他們做到這點。

Our next question comes from Jeff Zekauskas from JPMorgan.

下一個問題來自摩根大通（JPMorgan）的 Jeff Zekauskas。

In listening to Matt's description of prices going up 2% but there being inflationary pressure, does that mean that the price cost benefit in the quarter was 0? That is, prices went up 2% and costs went up 2%? And secondly, do you have an update on your project with Exxon in Singapore? That is, have you begun to spend for that?

聽 Matt 描述價格上漲 2% 但同時存在通膨壓力，這是否意味著本季的價差（price-cost benefit）為 0？也就是說，價格上漲 2%，成本也上漲 2%？第二，你們在新加坡與埃克森（Exxon）的專案有最新進展嗎？也就是說，你們是否已經開始為此投入支出？

Jeff, I can take the first one, and Sanjiv here will take the second one. So as you well know, the spread of our price less cost inflation of productivity is a very important metric that is part of our operating rhythm that we look at, at every country at the lowest levels of detail because that spread is very important, how we manage that spread as the compound decades go. And every country is different, right?

Jeff，第一個我來回答，第二個由 Sanjiv 來回答。你很清楚，價格減去成本通膨再加上生產力的差額（spread）是非常重要的指標，是我們營運節奏的一部分；我們會在每個國家、以最細的層級去檢視，因為這個差額非常重要——在複利累積的數十年中，我們如何管理這個差額至關重要。而且每個國家都不一樣，對吧？

Every country has different inflation profiles, but the spread is something we constantly look at. So given in the first quarter here, obviously, we have the price at the top of the house at 2%. On our cost front, they were lower, as you probably saw, especially on the fixed cost just due to some efficiencies we were able to achieve. We're also achieving efficiencies in the variable cost. So the spread was probably a little wider in this first quarter.

每個國家的通膨輪廓不同，但這個差額是我們持續關注的。因此在第一季，很明顯我們在公司整體層級的價格是 2%。在成本端，如你可能也看到的，成本較低，尤其是固定成本，主要因為我們達成了一些效率提升。我們在變動成本上也在提升效率。所以第一季的差額可能稍微更寬一些。

But nevertheless, on a go-forward basis, we always have to make sure we manage that spread, and we feel quite confident in our ability to do it. And also the things, the large commodity inputs since we pass them through, they don't create as much issues on that as you might see in other types of industries. So for us, it's really managing a lot of the fixed costs and the operating costs and the SG&A, which is part of what we do with this rhythm.

但即便如此，往後我們仍必須確保把這個差額管理好，而我們對自身能力相當有信心。另外，因為大型大宗商品投入成本我們會轉嫁（pass through），所以它們在這方面不會像其他產業那樣造成那麼多問題。對我們而言，重點其實是管理大量的固定成本、營運成本與銷管費（SG&A），這也是我們透過這套節奏在做的事。

And Jeff, let me move on and talk a little bit about the Singapore project that you mentioned. So as far as our project is concerned, we have obviously been impacted by COVID on the schedule itself. But we have been executing the project. We've been spending on the project. We have commitments in place, and the project is currently underway. Our first modules, in fact, very large modules, have now reached the site and are in the staging area. So progress happening as we speak.

Jeff，接著我談一下你提到的新加坡專案。就我們的專案而言，時程確實受到 COVID 的影響。但我們一直在執行該專案，也一直在投入支出。我們已經有相關承諾到位，專案目前正在進行中。事實上，我們的第一批模組——而且是非常大型的模組——現在已經抵達現場並在集結區（staging area）。所以此刻進度正在推進。

Our next question comes from Steve Byrne from Bank of America.

下一個問題來自美國銀行（Bank of America）的 Steve Byrne。

Yes. Sanjiv, you were talking about having a couple of hundred clean energy projects that you're looking at and you lay out a pretty clear case on the Slide 7 about Linde's expertise and capabilities in that whole supply chain. There's one area that I don't see mentioned that would seem to be an advantage for you, but I welcome your comment on that, and that is access to renewable power or maybe restated, the contracts that you have with power suppliers, it would suggest that you would have a meaningful advantage there in terms of electricity pricing from renewable power versus the many new entrants that are getting into this business. Can you comment on that?

是的。Sanjiv，你提到你們正在評估數百個潔淨能源專案，而且你在第 7 頁投影片上很清楚地說明了 Linde 在整個供應鏈的專業與能力。有一個領域我沒有看到被提到，但看起來對你們應該是優勢，我也想聽聽你的看法：那就是取得再生能源電力的能力，或者換句話說，你們與電力供應商的合約。這似乎意味著，相較於許多新進入者，你們在再生能源電力的電價方面會有顯著優勢。你能評論一下嗎？

Thanks, Steve. That's a great point you make. And actually, we should probably have mentioned that on that slide. So well suggested. There are -- the way we think about renewable power, and you're absolutely right. We are one of the largest consumers in most countries where we operate. And therefore, we have, if you like, the collective ability to go and have those conversations with our power suppliers.

謝謝，Steve。你提出了一個很好的觀點。其實我們可能應該在那張投影片上提到這點，你的建議很好。關於再生能源電力——你說得完全正確——在我們營運的大多數國家，我們都是最大的用電戶之一。因此，如果你願意這麼說，我們具備整體性的能力去和電力供應商進行這些對話。

And now what tends to happen on renewable power, if I can just take a step back, is to tell you that the grid by itself and many of these suppliers, as a consequence of conversations that we're having with them, are actually moving and the level of renewable power within the grid itself is continuing to grow. So that's good that we are seeing action from these larger players. In addition to that, obviously, we then go out specifically and sign up PPAs with renewable power kind of developers who, in some cases on a one-on-one basis, in other cases on a shared basis, we would then get into long-term contracts with, often providing them support for their broader project as well.

而再生能源電力通常會發生的情況是——我先退一步說明——電網本身以及許多供應商，因為我們與他們的對話，實際上也正在轉變；電網中的再生能源占比持續提高。這很好，因為我們看到這些大型業者正在採取行動。除此之外，當然我們也會特別去與再生能源開發商簽署購電協議（PPA）。有些是單獨一對一，有些是共享模式；我們會與其簽訂長期合約，且往往也會為他們更廣泛的專案提供支持。

And in each one of these cases, because of our incumbency, we have well-established methodology as to how we get pricing on that renewable power, whether it's in the circumstances of a grid or whether it's on specific PPAs as well. So that is a competitive advantage, you're right. And obviously, our incumbency provides that, and it's something that we focus on quite a bit as we move ahead.

在每一種情況下，因為我們既有的市場地位（incumbency），我們有成熟的方法論來取得再生能源電力的價格，不論是在電網情境下，或是在特定的 PPA 情境下皆然。所以你說得對，這是一項競爭優勢。而且很明顯，我們的既有地位帶來了這點；這也是我們在往前推進時相當聚焦的一個面向。

Yes. And Steve, it's Matt. I can just add a few things as well. So as you may know, today, about 1/3 of our power is renewable already. So we've already been quite active in that space, and it's not something we built overnight. This has taken many years to get to that point. And as we mentioned, we will give a more wholesome ESG or fulsome, I should say, ESG update in the future.

是的。Steve，我是 Matt，我也補充幾點。如你所知，目前我們大約有 1/3 的用電已經是再生能源。所以我們在這個領域其實已經相當積極，這也不是一夕之間建立起來的；我們花了很多年才走到今天這個程度。正如我們提到的，未來我們會提供更完整——更全面（fulsome）地說——的 ESG 更新。

And this is an integral part of our ESG initiatives, especially around managing Scope 2 emissions is the renewable power effort. So this is something that we absolutely are actively doing. We have been doing for quite a long period of time, and we'll give further updates as it relates to that on our initiatives for ESG. And to your point, given our position, we are able to help these investments, and it's something we're actively working on and looking for today.

而這是我們 ESG 倡議中不可或缺的一部分，特別是在管理範疇二（Scope 2）排放方面，再生能源電力的努力非常關鍵。所以這確實是我們正在積極推動的事情，我們也已經做了相當長一段時間；後續我們也會就 ESG 相關倡議提供更多更新。也如你所說，基於我們的地位，我們能夠協助促成這些投資，這也是我們目前正在積極投入並尋找機會的方向。

And can either of you comment on where you think you are in the achievement of the cost synergies that you initially laid out? With the merger with Praxair and Linde, do you think you've reached you're coming to the end of that process? Or do you think that you got a long way to go?

另外，你們兩位是否能評論一下：就你們最初提出的成本綜效目標而言，你們認為目前達成到什麼程度？在 Praxair 與 Linde 合併之後，你們覺得已經接近這個流程的尾聲了嗎？還是你們認為還有很長的路要走？

Steve, there's never an end to being efficient and productive. So it is -- there is no end. It's something we have to continue to do and it's integrated to our culture. But as you know, we measure ourselves on our performance. How did we deliver? And that's always -- we gave you a number, as you know. But in the same token, we said, judge us on our performance.

Steve，效率與生產力永遠沒有終點。所以——沒有終點。這是我們必須持續做的事，而且已融入我們的文化。但如你所知，我們用績效來衡量自己：我們交付了什麼？而那永遠是——你知道我們給過你一個數字。但同時我們也說過，用我們的表現來評斷我們。

How do we expand margins? How do we grow EPS? How do we manage return on capital? How do we generate excess cash? How do we grow? Looking back in the 2 years, as we started this presentation, I think we've demonstrated, on a relative basis, that we've done a pretty good job. We've got a good start for the last couple of years. And so this is going to be the foundation for what we're going to continue to do going forward.

我們如何擴大毛利率？如何成長 EPS？如何管理資本報酬？如何產生超額現金？如何成長？回顧這兩年，正如我們在簡報一開始所說，我認為相對而言，我們已經證明自己做得相當不錯。過去幾年我們有一個好的起步。因此，這將成為我們未來持續推進工作的基礎。

Our next question comes from John McNulty from BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 John McNulty。

I wanted to dig into the release that you had put out the other day on the small on-site contracts for 2020 to maybe get a little bit more color around it. Can you speak to whether this was a lot of oxygen units for COVID or if it was more a sign that this recession is maybe a little bit different and the snapback from some of the smaller customers out there was maybe quicker? And then, I guess, as a follow-up to that, would you say that business is a little bit of a leading indicator for how we should be thinking about the larger scale projects and the demand for those?

我想深入了解一下你們前幾天發布的、關於 2020 年小型現場供氣合約的新聞稿，看看能否多提供一些背景說明。你能談談這主要是因 COVID 需求而帶動的氧氣裝置，還是更顯示這次衰退可能有些不同、一些較小客戶的復甦反彈可能更快？另外，我想追問的是，你會不會認為這塊業務對於我們該如何看待更大型專案及其需求，算是一個領先指標？

John, thanks for that question. I must admit that we are really proud of our small on-site portfolio. And something that we believe provides a really fulsome growth kind of opportunity for our businesses across the world. So there are a couple of ways to kind of look at that portfolio and see how that correlates to what we're seeing in the market. So we're seeing that growth not coming from COVID.

John，謝謝你的問題。我必須承認，我們對小型現場供氣的產品組合感到非常自豪。我們相信這能為我們在全球各地的業務帶來相當完整的成長機會。因此，有幾種方式可以來看這個組合，並觀察它與我們在市場上看到的情況如何相互對應。我們看到的成長並不是來自 COVID。

There is no linkage to that at all. Most of these units are VPSA units, which are slightly lower purity, typically going into industrial processes. We do that for pulp and paper. We've seen a fair amount of growth in pulp and paper. We are seeing growth in some other segments -- ancillary segments around metals as well and glass and many others in fact. So I mean it is a widespread portfolio that supports a large number of different industries.

這完全沒有任何關聯。這些裝置大多是 VPSA 裝置，純度略低，通常用於工業製程。我們在紙漿與造紙產業有做這些，我們也看到紙漿與造紙有相當程度的成長。我們也在其他一些領域看到成長——例如金屬周邊的輔助細分市場，以及玻璃等許多其他領域。總之，這是一個覆蓋面很廣的產品組合，支援大量不同的產業。

I would say to you that it's a good pointer to industrial activity generally. I don't see a particular correlation for larger projects, if that was your question. But we do see this kind of correlate to industrial activity. And as people move, their consumption increases. These come into play.

我會說，這對整體工業活動是一個不錯的指標。如果你的問題是指大型專案，我看不出特別的相關性。但我們確實看到它與工業活動有一定的連動。當人們開始移動、消費增加時，這些就會發揮作用。

I was just going to add one quick point to that. I think it's probably a little bit to Steve's earlier question. I mean, as you know, we never gave revenue synergies. That was not something we committed a number to. But this area was an area where when we brought both companies together, it really filled out the product line portfolio of the small on-site plants. And this is an area where I think we've had a very strong execution given the combination of the technologies and capabilities from the merger of the company. And I think the success rate kind of speaks to that.

我只想再補充一點。我想這可能也呼應 Steve 先前的問題。你也知道，我們從未提出營收協同效益（revenue synergies）的數字；那不是我們承諾過的項目。但這個領域是在兩家公司合併後，讓小型現場供氣工廠的產品線組合更完整的一塊。我認為，憑藉合併帶來的技術與能力結合，我們在這方面的執行非常強，而成功率也某種程度反映了這一點。

Got it. No, it makes sense. And I guess maybe, again, as a follow-up to that, when you -- I know normally -- I guess, if there is such a thing around recessions, it takes about 18 to 24 months for kind of the larger-scale projects, the project backlogs to start filling back up again. I guess, given the snapback that we've seen in a lot of the industrial economy, does it look like in the conversations that you're having, is that going to be a little more short-lived in terms of how long it takes to get that kind of flywheel working on the big projects again? How should we be thinking about that?

了解。是的，這很合理。我想再追問一下——我知道一般來說——如果衰退也有所謂的「常態」的話，通常需要大約 18 到 24 個月，較大型專案、專案積壓（backlog）才會開始重新補回來。考量到我們在工業經濟中看到的反彈速度，你們在對話中是否覺得，讓大型專案的飛輪再次轉起來所需的時間，可能會更短、影響更短暫？我們應該怎麼看待這件事？

So John, just kind of commenting briefly on the level of activity we are seeing because that, in many ways, is that leading indicator. So we're seeing proposal activity increasing. We're seeing that increasing in the U.S. We're seeing it increasing across Asia. I think about China, South Korea, India, a couple of the ASEAN markets as well. So we're seeing a lot more projects. Now, a part of these projects are electronics. You've heard me talk about electronics before, what a strong growth we've seen in the quarter. And my expectation is that we will see a lot more of electronic project growth happen as we see these new fab buildups happen as well.

John，我先簡短評論一下我們看到的活動水準，因為這在很多方面就是那個領先指標。我們看到提案活動正在增加；在美國增加，在亞洲各地也在增加。我想到中國、南韓、印度，以及幾個東協市場。我們看到更多的專案。這些專案中有一部分是電子產業。你之前也聽我談過電子產業，我們在本季看到非常強勁的成長。我預期，隨著新的晶圓廠（fab）擴建陸續展開，我們會看到更多電子相關專案的成長。

They are progressing well. They are all on track, and you've seen a number of announcements, I'm sure, from TSMC, Samsung, Intel and so on and so forth. So those are all looking to be on track and part of that activity. I also have to say that the other piece I'm a little more -- I'm a little more positive on is the more traditional markets, steel, chemicals, refining, also project activity actually picking up over there as we see. So I'm not going to comment particularly on if we are seeing potentially this as a snapback. I see this as fundamental underlying activity picking up and translating them into projects that people are pursuing, and we are getting a chance to participate in.

它們進展良好，全部都按計畫推進；我相信你也看到台積電、三星、英特爾等等發布了多項公告。因此，這些看起來都在軌道上，也是活動的一部分。另外，我稍微更樂觀的另一塊是較傳統的市場：鋼鐵、化工、煉油等；我們也看到那邊的專案活動確實在回升。所以我不會特別評論這是否是一種「反彈」。我看到的是基本面底層活動正在回升，並轉化為人們正在推進的專案，而我們也有機會參與其中。

And our next question comes from Peter Clark from Societe Generale.

我們的下一個問題來自法國興業銀行（Societe Generale）的 Peter Clark。

I've got 2 questions. First one for Sanjiv, I think. About the productivity being embedded, obviously, in the PLC. Is the story now on productivity more about not adding costs back if the volumes continue to grow rather than savage cost cutting as such? Because I did notice, obviously, Q4 -- we'll get the Q1 numbers later in terms of the headcount and the severance costs. But they did slow, obviously, in the fourth quarter from the pace earlier in the year.

我有兩個問題。第一個我想問 Sanjiv：關於生產力已經被內嵌在 PLC 裡。現在生產力的論述，是否更偏向於在量持續成長時不要把成本加回去，而不是所謂的大刀闊斧式的成本削減？因為我注意到，顯然第四季——我們稍後會看到第一季的人力與資遣費用數字——但第四季的速度確實比年初時放緩。

And then for Matt, on the cash flow, I mean, the Q1 performance now is what we would normally see in the legacy companies, usually in Q4, which is normally the strongest quarter. I'm just wondering how that progresses through the year, given that you always make more money in the second half?

第二個問題給 Matt，關於現金流：第一季的表現現在看起來像是我們過去的舊公司通常在第四季才會看到的水準，而第四季通常是最強的一季。我想知道，考量你們一向在下半年賺得更多，這種情況在今年接下來會如何演變？

Peter, thanks. I'm going to give you a quick view on productivity. So you've heard me say this before, and I think Matt kind of made a very good observation earlier on, which is that we are always going to be very, very focused on managing our cost base. Our total cash fixed cost is something we kind of discuss every month at the business reviews that we carry out. So adding cost back is something we kind of manage actively.

Peter，謝謝。我先快速說一下生產力。你以前聽我說過，而我也認為 Matt 先前提到了一個很好的觀察：我們會一直、非常非常專注於管理成本基礎。我們的總現金固定成本，是我們在每月進行的業務檢討會中都會討論的項目。因此，把成本加回去這件事，我們是主動在管理的。

I think it doesn't necessarily translate into productivity because for productivity, we want to see that incremental action as well, which makes it tough. But it is in the DNA of the organization, Peter, and you've heard me talk kind of passionately about the fact that every individual in our organization has got a mandate to go out and look for productivity every day. It's thousands of projects, which add small benefits but actually flow into the entire productivity part that we put together. There's one other thing which I think is now enabling that or helping us accelerate that, and that's around digitalization.

我認為這不一定能直接等同於生產力，因為談到生產力，我們也希望看到額外的增量行動，這就變得比較困難。但這已經是組織的 DNA 了，Peter。你也聽我很有熱情地談過：我們組織中的每一位員工都被賦予使命，每天都要去尋找生產力。這是成千上萬個專案，單個帶來的效益很小，但會匯聚成我們整體的生產力成果。還有一件我認為正在促成或幫助我們加速的事情，就是數位化。

And again, hopefully, you've heard me speak about this as well before. We're using digitalization, not as a significant tool that's going to create Earth-shattering new discoveries for us, but it's something that we apply in our business to deal with pain points every day. Our organizational model is embedded within the organization. So digital kind of expertise is being built up within every business across the world, and we are encouraging them. And in fact, I track it every quarter to ask them what percentage of productivity is coming from digital work or initiatives that we put in place. So that is an enabler that I see in actually ensuring our productivity stays on track. Matt?

同樣地，希望你之前也聽我談過。我們使用數位化，不是把它當作會為我們帶來驚天動地新發現的重大工具，而是把它應用在日常業務中，去解決每天的痛點。我們的組織模型已經內嵌在組織之中，因此數位方面的專業能力正在全球各個事業體內部建立起來，我們也在鼓勵他們。事實上，我每季都會追蹤，詢問他們有多少比例的生產力來自我們推動的數位工作或倡議。所以我認為這是一個促成因素，能確保我們的生產力維持在正軌上。Matt？

Yes. And so Peter, on the cash, yes, pretty solid Q1 cash. I think starting with -- when I think about operating cash flow kind of as a percentage of our EBITDA, we were almost high 80s this quarter. Normally, to your point, Q1 is seasonally lower. So I think it's a combination of a few things. I mean first of all, obviously, with EPS growing at 32%, half of the benefit just came from earnings. So as we continue to have strong earnings growth, that should flow right through the cash flow.

是的。Peter，關於現金，是的，第一季現金表現相當穩健。從——當我把營運現金流視為 EBITDA 的百分比來看，本季我們接近 80% 後段的水準。通常如你所說，第一季季節性會比較低。我認為這是幾個因素的組合。首先，顯然 EPS 成長 32%，其中一半的改善來自獲利。因此，只要我們持續有強勁的獲利成長，現金流就會直接反映出來。

The other half of the year-over-year improvement was mostly working capital as we had nets everywhere else. And we're just seeing strong performance around the world in terms of collections, management of payables, inventory, just managing the asset and liability base quite well. Engineering had a very strong working capital performance as well as they continue to manage their projects incredibly well under different -- difficult circumstances.

另一半年對年改善主要來自營運資金（working capital），因為其他各項我們大致持平。我們在全球各地看到在收款、應付帳款管理、庫存，以及整體資產負債基礎管理方面都有很強的表現。工程部門的營運資金表現也非常強，因為他們在不同——且困難的情況下，仍持續把專案管理得非常好。

As you look forward into the second half, I think it should just be a continuation of an earnings driven with tight working capital management efforts. So If we can continue to see kind of the strong results, that should flow through to cash. I mean cash is an integral part of our compensation. It's something that we track very diligently each month, and we're seeing the benefits, I think, of that effort, and we should continue to see the benefits of that effort looking forward.

展望下半年，我認為應該會延續由獲利驅動、並搭配嚴格營運資金管理的努力。因此，如果我們能持續看到強勁的成果，這應該會反映到現金上。現金是我們薪酬的一個重要部分；我們每個月都非常嚴謹地追蹤它。我認為我們正在看到這些努力帶來的效益，而且往前看也應該會持續看到這些效益。

Our next question comes from Geoff Haire from UBS.

我們的下一個問題來自 UBS 的 Geoff Haire。

Just 2 quick questions. First of all, I was just wondering if, Matt, if you could help us sort of think about what your pricing assumptions are within the guidance for the second half of the year? And then also, obviously, you had very strong pricing in Europe and North America relative to at least one of your peers. I was just wondering what was driving that and how sustainable that is.

我有兩個簡短的問題。首先，我想請教 Matt，您是否能協助我們理解一下，在今年下半年指引中，您對定價的假設是什麼？另外，很明顯地，相較於至少一位同業，您在歐洲與北美的定價表現非常強勁。我想了解是什麼因素在驅動這點，以及其可持續性如何。

Yes, Geoff. So probably as stated before, I guess, 2 points. Number one, we fully continue to expect to price to weighted inflation. And since the second half guidance, we really didn't touch, it would be based on kind of a 3-month ago view. But as you know, last quarter, we had about a 2% pricing. This quarter, 2% pricing. Now you don't see the first decimal, but we are seeing a bit of improvement as inflation kind of picks up. But that's what the expectation would be. Just continue to price to the weighted inflation is what our views are when we look forward.

是的，Geoff。大概如同先前所說，我想有兩點。第一，我們完全仍然預期會依加權通膨來進行定價。而由於下半年指引其實沒有調整，它是基於大約三個月前的觀點。不過如你所知，上季我們大約有 2% 的定價，本季也是 2% 的定價。你現在看不到小數點後第一位，但隨著通膨有所回升，我們確實看到一些改善。這就是我們的預期：往前看，我們的看法就是持續依加權通膨來定價。

Our next question comes from Vincent Andrews from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Vincent Andrews。

Just wanted to follow up on the green hydrogen discussion. I heard sort of very clear and very confident point of view on the opportunity set and, in particular, that it would be in excess of the 10% compounding that you anticipate sort of from the core business. And I guess I just want to better understand, as we think about sort of our CapEx that we're putting in our models in the sort of the medium to long term, how much do you think that would scale up and overall, what implications that would have to broader capital allocation?

我想跟進一下綠氫的討論。我聽到你們對機會集合有非常清楚且非常有信心的觀點，特別是它將超過你們預期核心業務約 10% 的複合成長。我想更好地理解的是，當我們在中長期模型中納入資本支出（CapEx）時，你們認為這會擴大到什麼程度？整體而言，這對更廣泛的資本配置會有什麼影響？

Vince, it's Matt. So I think a couple of things. First, as we mentioned, right now, the vast majority of these projects are falling under base CapEx. And we would anticipate to continue to see growth in base CapEx primarily around either distribution, infrastructure-type assets to support and some production assets, whether it be electrolyzers or other kinds of hydrogen -- smaller hydrogen-producing assets. So from that perspective, I would model that 40% or more growth portion of the base CapEx might accelerate related to these initiatives.

Vince，我是 Matt。我想有幾點。第一，如我們提到的，目前這些專案的絕大多數都歸類在基礎 CapEx 之下。我們預期基礎 CapEx 仍會持續成長，主要圍繞在配銷、基礎設施類資產以提供支援，以及一些生產資產，不論是電解槽或其他類型的氫氣——較小型的製氫資產。從這個角度來看，我會在模型中假設基礎 CapEx 中 40% 或以上的成長部分，可能會因這些倡議而加速。

If there are any backlog projects, they would likely be announced in terms of being additions to the backlog. But I would say from a CapEx spend and benefit, we're not changing our investment criteria, it's the same. How we approach these is the same. And so I would just model it, just like Sanjiv said, it's incremental to the greater than 10% EPS growth rate that we're looking to do. And what we find and can add into this should be accretive to that over the coming years here.

如果有任何在手訂單（backlog）專案，應該會以新增至 backlog 的方式對外宣布。但我想就 CapEx 支出與效益而言，我們不會改變投資標準，仍然相同；我們處理這些專案的方法也相同。因此我會像 Sanjiv 說的那樣建模：它是我們目標達成的超過 10% EPS 成長率之外的增量。我們能找到並納入的內容，在未來幾年應該會對該成長率具增益（accretive）。

So we don't need to take a CapEx forecast into the high $3 billions or anything like that?

所以我們不需要把 CapEx 預測拉高到 30 多億美元以上之類的水準？

No, that would only happen as a function of any large projects. And I think from that perspective, we'll see. If they meet our investment criteria, yes. But that's something that we'd mentioned that we've got over 200 projects we're evaluating. And when we meet our investment criteria, we'll spend, and we should want to spend that CapEx. But we've shown, I think, with our metrics, that we keep our discipline and keep our approach, we should get the right growth and the right results.

不，只有在出現任何大型專案的情況下才會發生。我想從這個角度來看，我們再觀察。如果它們符合我們的投資標準，是的。但我們也提過，我們正在評估超過 200 個專案。當符合我們的投資標準時，我們就會投入，而且我們也應該希望投入那筆 CapEx。不過我認為，從我們的各項指標可以看出，我們維持紀律並堅持既有方法，就能取得正確的成長與正確的成果。

And we'll take our last question from Kevin McCarthy from Vertical Research Partners.

接下來我們的最後一個問題來自 Vertical Research Partners 的 Kevin McCarthy。

Matt, in your prepared remarks, you made a comment that April results exceeded your internal expectations. I was wondering if you could comment on what accounted for that variance, if anything stood out in terms of region or end-use market? And then secondly, if I may, you mentioned Uri was a drag on sales.

Matt，在你準備好的發言中，你提到 4 月的結果超出你們內部預期。我想請你談談造成這個差異的原因；是否有任何在區域或終端市場方面特別突出的因素？第二個問題，如果可以的話，你提到 Uri 對銷售造成拖累。

What was that drag? And how did you insulate the profit from being impactful? I appreciate you have contracts, but I would have thought maybe there would be a slight impact in your merchant and/or packaged gas business. I'm wondering if you just simply recover by the end of March or if you're able to offset through electricity sales or otherwise.

那個拖累是什麼？你們又是如何讓獲利不受影響的？我理解你們有合約保障，但我原本以為你們的散售（merchant）和／或包裝氣體業務可能會有些微影響。我想了解你們是否只是到 3 月底就恢復了，或是能透過電力銷售或其他方式來抵銷。謝謝。

Kevin, it's Matt. I can do the first one and Sanjiv will take the second one. So my comment related to April, it was fairly broad-based. I would say, for the most part, what we've been seeing is recovery in developed markets on an industrial front. Some developing markets are still, in some areas, going through some challenges.

Kevin，我是 Matt。我先回答第一個，第二個由 Sanjiv 來回答。關於我提到的 4 月，這是相當廣泛的現象。我會說，大致上我們看到的是已開發市場在工業端的復甦。有些新興市場在某些領域仍面臨一些挑戰。

But the expectation is probably by the back end of the quarter, we hope to see some industrial activity rebounding. But I would say it's, for the most part, incremental industrial activity, especially in certain developed markets that you're seeing in North America, especially places like Asia. It's really what's driving it, pretty much a continuation of what we've been seeing.

但我們的預期是，可能在本季後段，我們希望看到一些工業活動回升。不過我會說，主要是工業活動的增量，尤其是在某些已開發市場——你在北美、特別是像亞洲這些地方看到的情況——這確實是驅動因素，基本上是我們一直以來所看到趨勢的延續。

And Kevin, moving on to Uri then and just kind of briefly giving you a sense. So again, I think it's a good opportunity for me to just mention that our team in Texas did an outstanding job. They've managed to ensure that we shut down and started up safely, quickly. We were able to support our customers. And even in some cases, some of the players who are not our customers to just make sure that they remain safe and helping them with their start-ups as well.

Kevin，接著談 Uri，我簡要說明一下。我想這也是個好機會提到，我們德州團隊做得非常出色。他們確保我們能安全且迅速地停機與重新啟動。我們也能支援客戶，甚至在某些情況下，也協助一些並非我們客戶的業者，確保他們維持安全，並在他們重新啟動時提供協助。

So our customers really have actually started up and are operational now, whether it's refineries, chemicals, all of them back online. And we're seeing volumes back to pre-COVID levels in some cases as well, particularly on the chemical side. Our bulk customers, again, I think we saw a quick turnaround over there post the winter freeze and again, with some support from us, our customers are back up and running. We see levels back to January already in that space as well. Refinery is probably the most specific one where you know that they have a longer lead time to startups.

因此，我們的客戶其實現在都已重新啟動並恢復運作，不論是煉油、化工，全部都已回到線上。我們也看到在某些情況下，尤其是化工端，量已回到疫情前水準。我們的大宗（bulk）客戶方面，我想在冬季冰凍事件後也很快就恢復了；在我們的一些支援下，客戶已恢復運轉。我們也看到該領域的水準已回到 1 月。煉油可能是最具代表性的例子，因為你知道他們重新啟動需要較長的前置時間。

Even there, we were quite pleased to see that they were up and running in 3 or 4 weeks. And today, hydrogen volumes are about 12%. I think they're about higher than where we were earlier in the year. So again, it's been pretty good in terms of how that overall piece has been managed. I guess the point that the guys in Texas said to me, which I think holds here as well, is we're used to seeing storms, hurricanes, freezes. This is not new. This is something that we work on every year, and we've got a team that fully understands that and getting plants back online is significantly important, making sure our customers have the product available to keep them safe and ready to go.

即便如此，我們也很高興看到他們在 3 到 4 週內就恢復運作。而今天，氫氣量大約是 12%，我想比今年稍早的水準還要高。因此整體來看，這部分的管理表現相當不錯。我想德州的同仁對我說的一點——我認為也適用於此——是我們習慣面對風暴、颶風、冰凍。這並不新鮮。這是我們每年都在處理的事情，而我們有一支完全理解這點的團隊；讓工廠重新上線非常重要，並確保客戶有產品可用，以維持安全並隨時準備就緒。

Now contractually, obviously, we are well protected, as you've just remarked. So that's one of the reasons we don't see a significant exposure, while we see some top line movement. But again, from March to April, we've seen that uplift come back fairly quickly as well.

在合約方面，顯然我們有很好的保障，正如你剛才所說。因此，雖然我們看到營收端有一些波動，但這也是我們不認為會有重大曝險的原因之一。不過同樣地，從 3 月到 4 月，我們也看到那個回升相當快地回來了。

And that does conclude our question-and-answer session for today's conference. I'd now like to turn the call back over to Juan Pelaez for any closing remarks.

以上即為今天會議的問答環節。現在我想把電話交回給 Juan Pelaez，請他做任何結語。

Crystal, thank you. And everyone on the line, thank you very much for participating today. If you have any further questions, please feel free to reach out. Have a great rest of your day. Take care.

Crystal，謝謝。也謝謝線上的各位今天的參與。如果你們還有任何進一步的問題，歡迎隨時聯繫。祝各位今天剩下的時間愉快。保重。

This concludes today's conference call. Thank you for your participation, and you may now disconnect. Everyone, have a great day.

今天的電話會議到此結束。感謝各位的參與，現在可以掛線。各位，祝你們有美好的一天。