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Mike Hilton
VP/GM Electronics and Performance Materials
Goldman, Sachs and Co.
May 10, 2007
Forward-Looking Statements
    NOTE: This presentation contains “forward-looking statements” within the safe harbor provisions of the Private
    Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s
    reasonable expectations and assumptions as of the date of this presentation regarding important risk
    factors. Actual performance and financial results may differ materially from those expressed in the forward-
    looking statements because of many factors, including those specifically referenced as future events or
    outcomes that the company anticipates as well as, among other things, overall economic and business
    conditions different than those currently anticipated and demand for Air Products’ goods and services during that
    time; competitive factors in the industries in which it competes; interruption in ordinary sources of supply; the
    ability to recover unanticipated increased energy and raw material costs from customers; uninsured litigation
    judgments or settlements; changes in government regulations; consequences of acts of war or terrorism
    impacting the United States’ and other markets; the effects of a pandemic or epidemic or a natural disaster;
    charges related to portfolio management and cost reduction actions; the success of implementing cost reduction
    programs and achieving anticipated acquisition synergies; the timing, impact and other uncertainties of future
    acquisitions or divestitures or unanticipated contract terminations; significant fluctuations in interest rates and
    foreign currencies from that currently anticipated; the impact of tax and other legislation and regulations in
    jurisdictions in which Air Products and its affiliates operate; the impact of new financial accounting standards; and
    the timing and rate at which tax credits can be utilized. The company disclaims any obligation or undertaking to
    disseminate any updates or revisions to any forward-looking statements contained in this presentation to reflect
    any change in the company’s assumptions, beliefs or expectations or any change in events, conditions or
    circumstances upon which any such forward-looking statements are based.
2
Air Products
    At a glance
       $9B in sales
       Diverse markets and
       geographies
       Positioned for continued
       long-term value creation
                                              FY06 Geographic Sales
           FY06 Segment Sales
                                          Canada/Latin
                       Tonnage                           ROW
         Merchant                         America (4%)
                        Gases                            (2%)
          Gases         (25%)                 Asia
          (31%)
                                                                United States
                                             (16%)
                                                                    (49%)


                            Equipment &
                              Energy
    Healthcare                            Europe
                                (6%)
      (6%)                                 (29%)
                       Electronics &
           Chemicals   Performance
             (10%)       Materials
                           (22%)
3
Value Proposition
    Profitable Growth
     Stability
      – Long term contracts
      – Consistent and predictable
        cash flows
      – Strong balance sheet
     Earnings growth
      – Volume loading
      – Pricing/margins
      – Productivity
     Improving returns


4
A Healthy Report Card
    Three consecutive years
                                                                 FY04        FY05   FY06
                                                                             $7.8
                                                                  $7.0               $8.9
    Sales ($B)……………
                                                                                    $3.50
                                                                  $2.53 $2.93
    EPS* ($/share)…….......
                                                                   9.3% 10.0%
    ORONA* (%) …………..                                                               11.3%
    SG&A as % of Sales*....                                                         12.2%
                                                                 14.2% 13.5%


    Balance Sheet………….                                             “A” rating
                                                                   Dividend increase &
    Shareholder Value…….
                                                                   share repurchase

5
     * Comparison is non-GAAP. See appendix slide for GAAP reconciliation.
Consolidated 1H Financials:
    Continued Solid Performance

                                                 1H FY06             1H FY07      Change

    Sales ($B)                                         $4.2               $4.9     16%
    Diluted EPS ($/share)*                           $1.66                $2.05    23%
    ORONA (%)**                                     10.6%                 11.9% 130bp
    SG&A as a % of Sales*                           12.3%                 11.8% (50bp)




           * Continuing Operations
6          ** Comparisons are non-GAAP, see appendix for reconciliation
Tonnage Gases
    Investments Drive Growth
    Industrial gases via
                                 FY’06 Performance
    large on-sites or
                                   vs. Prior Year:
    pipelines to refining,
    chemical, metallurgical
                                Sales      $2.2 billion
    industries
                                           up 28%
    Growing hydrogen
    franchise position;         Op. Inc.   $341 million
    gasification and new                   up 39%*
    oxygen technologies

                                Strong volumes from six
                              new refinery hydrogen plants
                                (35% capacity increase)
                               and base business growth

7
                                           * Comparisons are non-GAAP
Equipment & Energy
    LNG Drives Growth
    Air sep, hydrocarbon          FY’06 Performance
    recovery/purification,
                                    vs. Prior Year:
    natural gas liquefaction,
    helium distribution
                                Sales      $537 million
    equipment; future                      up 45%
    energy technologies
                                Op. Inc.   $69 million
    Oil and gas, utilities,
                                           up significantly*
    chemical, metals markets

                                    Driven by orders for
                                liquefied natural gas (LNG)
                                   heat exchangers and
                                    air separation units

8
                                           * Comparisons are non-GAAP
Merchant Gases:
    Leveraging Strong Demand
    Industrial gases,          FY’06 Performance
    certain medical /
                                 vs. Prior Year:
    specialty gases
    supplied to a variety
                             Sales      $2.7 billion
    of markets                          up 10%
    Liquid bulk,
                             Op. Inc.   $470 million
    packaged gases,
                                        up 18%*
    small on-sites

                            Strong volume performance
                             in all regions of the world,
                            supported by new customer
                            signings and price increases
                             despite hurricane impacts
9
                                        * Comparisons are non-GAAP
Healthcare:
     Focused on Improvement
     Respiratory therapies,       FY’06 Performance
     home medical
                                    vs. Prior Year:
     equipment, infusion
     services for patients in
                                 Sales      $571 million
     their homes                            up 5%
     Anticipate future
                                 Op. Inc.   $8 million
     improvement from higher
                                            down significantly*
     U.S. volumes and lower
     operating costs
                                 Operational issues in the
                                  U.S. and higher start-up
                                costs from a new U.K. home
                                      oxygen contract

10
                                            * Comparisons are non-GAAP
Electronics & Performance Materials:
     A Winning Combination
     Specialty / bulk gases /      FY’06 Performance
     chemicals, services and
                                     vs. Prior Year:
     equipment for electronics;
     performance chemical
                                  Sales      $1.9 billion
     solutions for various end               up 12%
     markets
                                  Op. Inc.   $195 million
     Surface science expertise
                                             up 48%*
     delivers performance
                                   Strong volumes driven
                                    by semiconductor and
                                  flat-panel display market
                                     demand and Tomah3
                                     Products acquisition

11
                                             * Comparisons are non-GAAP
Electronics & Performance Materials
     Innovation-based business model
      $2B segment under-pinned by technology, innovation
      Franchise positions / global leadership in:
       – Fluorine chemistry
       – Surface chemistry
       – Managing materials in high-purity environments
       – Specialty additives for formulated products
      Deep understanding of how our customers create value for
      their customers
       – Silicon-based manufacturing (ICs, displays)
       – Formulated systems (coatings, foam, adhesives…)
      APD technology provides context for new business
       – Critical mass of our technology investment
       – Enter into new fields with credibility, fresh view &
         extensive capabilities

12
Performance Materials
     Dimensions
      A global platform with
      >$700MM in sales
      3 key product lines + new
      initiatives platforms
      ~50% of sales outside of
      North America
      Formulated products that
      drive leadership positions
      Global manufacturing, R&D,
      applied technology
      infrastructure

13
Electronics
     Dimensions
      ~$1.3 billion bulk gas, specialty material
      and equipment business
      Driven principally by:
       – Semiconductor (~85%)
       – LCD (~10%)
      Strong volume growth:
       – 20% CAGR over last 4 years
      Business trends:
       – Asia growth
       – Product simplification & controlling
         the value chain
14
Electronics & Performance Materials:
     A natural extension of what
     Air Products does best
      Customers
       – Long-term relationships that leverage APD global
         business infrastructure
      Supply Chain
       – World class network of facilities and supply positions in
         critical geographies
       – Operationally excellent systems delivering the highest
         quality and reliability at the lowest cost
      Process
       – Engineering skills to take solutions from lab to world-
         scale production
       – Acquisition integration and improvement
      Applied technology
       – Knowledgeable people with deep industry understanding
         who can identify, quantify and solve customer problems
15
Steady Progress to ORONA Goal
     12.5%


                             ORONA Improvement

     11.5%




     10.5%


                                                                              4 Qtr Rolling Avg

      9.5%
             Q1'05

                     Q2'05


                              Q3'05

                                      Q4'05

                                              Q1'06


                                                      Q2'06

                                                              Q3'06


                                                                      Q4'06

                                                                               Q1'07

                                                                                       Q2'07


                                                                                               Q3'07

                                                                                                       Q4'07
16
              * see appendix for ORONA calculation
Our FY’07 Commitments

                                       Add Photo
      Achieve 12.5% ORONA
      Capture profitable growth
      Improve Healthcare performance
      Simplify Electronics
      Restructure Chemicals
      Drive productivity to the
      bottom line


17
Beyond 2007
     Growth Levers
      Large ($25MM+) projects on stream…9 in 2008
       – 6 in Tonnage
       – 3 in Electronics
      New geographies
       – Poland/Central and Eastern Europe
       – Asia
      New applications/products/markets
       – Energy
       – Performance Materials
      Productivity
       – Expand gross margins
       – Electronics/Healthcare/Europe business
         improvement
       – Leverage SAP
18
Beyond 2007
     Sustainable Double-Digit Growth
     at Superior Returns
      Targeting EPS growth between 10-15%
         6-7% Market growth
         2-4% New geographies/applications/products
         2-4% Productivity/margin expansion
        10-15% Total


      ROCE well above our cost of capital +3-5%

      More Focused, Less Cyclical,
      Higher Growth, Higher Returns
19
Thank you




tell me more
www.airproducts.com
Appendix:
     Non GAAP Reconciliation
      ($ Millions, except per share data)
                                               GAAP Measure                     Proforma adjusts                    Non GAAP Measure

                                                                        Stock Option Expense

                                        FY04        FY05      FY06       FY04         FY05         FY06(1)   FY04        FY05      FY06
     Sales                              7,031.9     7,768.3   8,850.4                                        7,031.9     7,768.3   8,850.4
     SG&A                                 956.2     1,013.6   1,080.7       39.4         38.5                  995.6     1,052.1   1,080.7
     SG&A% of Sales                      13.6%       13.0%     12.2%                                          14.2%       13.5%     12.2%

     Diluted EPS - Continuing Ops           $2.66     $3.06     $3.29      (0.13)        (0.13)      0.21      $2.53       $2.93       $3.50



      (1) Global cost reduction plan charge




21
Appendix:
     ORONA Non-GAAP Reconciliation




22

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air products & chemicals 16 May 2007 Goldman Sachs

  • 1. Mike Hilton VP/GM Electronics and Performance Materials Goldman, Sachs and Co. May 10, 2007
  • 2. Forward-Looking Statements NOTE: This presentation contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date of this presentation regarding important risk factors. Actual performance and financial results may differ materially from those expressed in the forward- looking statements because of many factors, including those specifically referenced as future events or outcomes that the company anticipates as well as, among other things, overall economic and business conditions different than those currently anticipated and demand for Air Products’ goods and services during that time; competitive factors in the industries in which it competes; interruption in ordinary sources of supply; the ability to recover unanticipated increased energy and raw material costs from customers; uninsured litigation judgments or settlements; changes in government regulations; consequences of acts of war or terrorism impacting the United States’ and other markets; the effects of a pandemic or epidemic or a natural disaster; charges related to portfolio management and cost reduction actions; the success of implementing cost reduction programs and achieving anticipated acquisition synergies; the timing, impact and other uncertainties of future acquisitions or divestitures or unanticipated contract terminations; significant fluctuations in interest rates and foreign currencies from that currently anticipated; the impact of tax and other legislation and regulations in jurisdictions in which Air Products and its affiliates operate; the impact of new financial accounting standards; and the timing and rate at which tax credits can be utilized. The company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this presentation to reflect any change in the company’s assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based. 2
  • 3. Air Products At a glance $9B in sales Diverse markets and geographies Positioned for continued long-term value creation FY06 Geographic Sales FY06 Segment Sales Canada/Latin Tonnage ROW Merchant America (4%) Gases (2%) Gases (25%) Asia (31%) United States (16%) (49%) Equipment & Energy Healthcare Europe (6%) (6%) (29%) Electronics & Chemicals Performance (10%) Materials (22%) 3
  • 4. Value Proposition Profitable Growth Stability – Long term contracts – Consistent and predictable cash flows – Strong balance sheet Earnings growth – Volume loading – Pricing/margins – Productivity Improving returns 4
  • 5. A Healthy Report Card Three consecutive years FY04 FY05 FY06 $7.8 $7.0 $8.9 Sales ($B)…………… $3.50 $2.53 $2.93 EPS* ($/share)……....... 9.3% 10.0% ORONA* (%) ………….. 11.3% SG&A as % of Sales*.... 12.2% 14.2% 13.5% Balance Sheet…………. “A” rating Dividend increase & Shareholder Value……. share repurchase 5 * Comparison is non-GAAP. See appendix slide for GAAP reconciliation.
  • 6. Consolidated 1H Financials: Continued Solid Performance 1H FY06 1H FY07 Change Sales ($B) $4.2 $4.9 16% Diluted EPS ($/share)* $1.66 $2.05 23% ORONA (%)** 10.6% 11.9% 130bp SG&A as a % of Sales* 12.3% 11.8% (50bp) * Continuing Operations 6 ** Comparisons are non-GAAP, see appendix for reconciliation
  • 7. Tonnage Gases Investments Drive Growth Industrial gases via FY’06 Performance large on-sites or vs. Prior Year: pipelines to refining, chemical, metallurgical Sales $2.2 billion industries up 28% Growing hydrogen franchise position; Op. Inc. $341 million gasification and new up 39%* oxygen technologies Strong volumes from six new refinery hydrogen plants (35% capacity increase) and base business growth 7 * Comparisons are non-GAAP
  • 8. Equipment & Energy LNG Drives Growth Air sep, hydrocarbon FY’06 Performance recovery/purification, vs. Prior Year: natural gas liquefaction, helium distribution Sales $537 million equipment; future up 45% energy technologies Op. Inc. $69 million Oil and gas, utilities, up significantly* chemical, metals markets Driven by orders for liquefied natural gas (LNG) heat exchangers and air separation units 8 * Comparisons are non-GAAP
  • 9. Merchant Gases: Leveraging Strong Demand Industrial gases, FY’06 Performance certain medical / vs. Prior Year: specialty gases supplied to a variety Sales $2.7 billion of markets up 10% Liquid bulk, Op. Inc. $470 million packaged gases, up 18%* small on-sites Strong volume performance in all regions of the world, supported by new customer signings and price increases despite hurricane impacts 9 * Comparisons are non-GAAP
  • 10. Healthcare: Focused on Improvement Respiratory therapies, FY’06 Performance home medical vs. Prior Year: equipment, infusion services for patients in Sales $571 million their homes up 5% Anticipate future Op. Inc. $8 million improvement from higher down significantly* U.S. volumes and lower operating costs Operational issues in the U.S. and higher start-up costs from a new U.K. home oxygen contract 10 * Comparisons are non-GAAP
  • 11. Electronics & Performance Materials: A Winning Combination Specialty / bulk gases / FY’06 Performance chemicals, services and vs. Prior Year: equipment for electronics; performance chemical Sales $1.9 billion solutions for various end up 12% markets Op. Inc. $195 million Surface science expertise up 48%* delivers performance Strong volumes driven by semiconductor and flat-panel display market demand and Tomah3 Products acquisition 11 * Comparisons are non-GAAP
  • 12. Electronics & Performance Materials Innovation-based business model $2B segment under-pinned by technology, innovation Franchise positions / global leadership in: – Fluorine chemistry – Surface chemistry – Managing materials in high-purity environments – Specialty additives for formulated products Deep understanding of how our customers create value for their customers – Silicon-based manufacturing (ICs, displays) – Formulated systems (coatings, foam, adhesives…) APD technology provides context for new business – Critical mass of our technology investment – Enter into new fields with credibility, fresh view & extensive capabilities 12
  • 13. Performance Materials Dimensions A global platform with >$700MM in sales 3 key product lines + new initiatives platforms ~50% of sales outside of North America Formulated products that drive leadership positions Global manufacturing, R&D, applied technology infrastructure 13
  • 14. Electronics Dimensions ~$1.3 billion bulk gas, specialty material and equipment business Driven principally by: – Semiconductor (~85%) – LCD (~10%) Strong volume growth: – 20% CAGR over last 4 years Business trends: – Asia growth – Product simplification & controlling the value chain 14
  • 15. Electronics & Performance Materials: A natural extension of what Air Products does best Customers – Long-term relationships that leverage APD global business infrastructure Supply Chain – World class network of facilities and supply positions in critical geographies – Operationally excellent systems delivering the highest quality and reliability at the lowest cost Process – Engineering skills to take solutions from lab to world- scale production – Acquisition integration and improvement Applied technology – Knowledgeable people with deep industry understanding who can identify, quantify and solve customer problems 15
  • 16. Steady Progress to ORONA Goal 12.5% ORONA Improvement 11.5% 10.5% 4 Qtr Rolling Avg 9.5% Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 16 * see appendix for ORONA calculation
  • 17. Our FY’07 Commitments Add Photo Achieve 12.5% ORONA Capture profitable growth Improve Healthcare performance Simplify Electronics Restructure Chemicals Drive productivity to the bottom line 17
  • 18. Beyond 2007 Growth Levers Large ($25MM+) projects on stream…9 in 2008 – 6 in Tonnage – 3 in Electronics New geographies – Poland/Central and Eastern Europe – Asia New applications/products/markets – Energy – Performance Materials Productivity – Expand gross margins – Electronics/Healthcare/Europe business improvement – Leverage SAP 18
  • 19. Beyond 2007 Sustainable Double-Digit Growth at Superior Returns Targeting EPS growth between 10-15% 6-7% Market growth 2-4% New geographies/applications/products 2-4% Productivity/margin expansion 10-15% Total ROCE well above our cost of capital +3-5% More Focused, Less Cyclical, Higher Growth, Higher Returns 19
  • 20. Thank you tell me more www.airproducts.com
  • 21. Appendix: Non GAAP Reconciliation ($ Millions, except per share data) GAAP Measure Proforma adjusts Non GAAP Measure Stock Option Expense FY04 FY05 FY06 FY04 FY05 FY06(1) FY04 FY05 FY06 Sales 7,031.9 7,768.3 8,850.4 7,031.9 7,768.3 8,850.4 SG&A 956.2 1,013.6 1,080.7 39.4 38.5 995.6 1,052.1 1,080.7 SG&A% of Sales 13.6% 13.0% 12.2% 14.2% 13.5% 12.2% Diluted EPS - Continuing Ops $2.66 $3.06 $3.29 (0.13) (0.13) 0.21 $2.53 $2.93 $3.50 (1) Global cost reduction plan charge 21
  • 22. Appendix: ORONA Non-GAAP Reconciliation 22