Praxair’s Perspective on Growth and Innovation

Dante P. Bonaquist

Senior Corporate Fellow

Praxair, Inc.

May 7, 2013

Praxair

■ Fortune 300 company, 26,000 employees■ Largest industrial gases company in North and South America, and 3rd

largest worldwide■ 30 countries, over 1 million customers■ 2012 sales of $12 billion, $34 billion market cap.■ Sterling reputation – safety, environmental stewardship, sustainability,

corporate governance, value creation■ Products

– Atmospheric gases (oxygen, nitrogen and argon).

– Process gases (hydrogen, carbon dioxide, helium, carbon monoxide)

– Semiconductor gases and materials

– Specialty and welding gases

– High-performance surface coatings

■ Named to Forbes 50 Most Innovative Companies List (2011)

Learn more at www.praxair.com

Global Drivers – The 3 “E”s

Energy

EmergingEconomies

Environment

World Energy Consumption

Source: BP Energy Outlook 2030

■ Growth in non-OECD countries■ Oil, gas and coal remain dominant■ Renewables emerging as significant

5

■ Brazil, Russia, India and China■ Huge new markets for products and

services■ Increased competition but US is well

positioned

Emerging Economies – BRIC

"Where else would you rather be than right here, right now?" Marv Levy

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Environment – Sustainable Development

■ Intersection of growing demand for energy with environmental stewardship– How to extract, process and use energy resources

responsibly– Energy efficiency – overall US efficiency at 36%

■ Access to clean water– Not available to 1/6 of world’s population – National Academy of Engineering Grand Challenge

■ Waste management– Minimization– Reuse– Environmentally responsible treatment and disposal

Traditional vs. Open Innovation

Open: “The world is our lab”• Most smart people do not work for us• Use internal and external ideas to win• Leverage the competencies of others• Choose the best business model• Combine your IP with that of others to

maximize value

Traditional: “The lab is our world”• All smart people work for us • Create the most and best ideas to win • Invent, develop and market yourself• Utilize only existing business models• Control your IP to defend positions

Small Entity/Large Firm Relationship

Small EntitySmall Entity

Agile Focused Deep understanding of

opportunity

Large FirmLarge Firm

Resources Discipline Channel to market and

synergies