Paul Huck, VP & CFO Credit Suisse 16th Annual Chemical ConferenceSeptember 26, 2007

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ForwardForward--Looking Statements 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 projections and estimates expressed in the forward-looking statements because of many factors, including, without limitation, overall economic and business conditions different than those currently anticipated; future financial and operating performance of major customers and industries served by Air Products; the impact of competitive products and pricing; interruption in ordinary sources of supply of raw materials; the ability to recover unanticipated increased energy and raw material costs from customers; costs and outcomes of litigation or regulatory activities; 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 new or changed tax and other legislation and regulations in jurisdictions in which Air Products and its affiliates operate; the impact of new or changed 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.

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Air Products Air Products At a glanceAt a glance

$9B in salesDiverse markets and geographiesPositioned for continued long-term value creation

FY06 Geographic Sales

United States(49%)

Asia(16%)

Europe(29%)

Canada/LatinAmerica (4%)

FY06 Segment SalesROW(2%)Merchant

Gases(31%)

TonnageGases(25%)

Equipment & Energy

(6%)Healthcare(6%)

Chemicals(10%)

Electronics & Performance

Materials(22%)

Chemicals(10%)

Electronics & Performance

Materials(22%)

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Value PropositionValue PropositionProfitable GrowthProfitable Growth

Stability– Long term contracts– Consistent and predictable

cash flows – Strong balance sheet

Earnings growth– New projects– Margin improvement– Productivity

Improving returns– Good progress– Continued opportunity

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Supply Modes Supply Modes Durable Business ModelsDurable Business Models

Package Gases & Specialty Materials

26%

Onsite/Pipeline34%

Liquid/Bulk21%

10, 15 and 20-year contractsTake-or-pay minimum volumes

Contractual energy pass-throughFormula escalation

3-5 year contractsRegional business

Cost pass-through/surcharges

% of consolidated revenues (excludes Chemicals segment)

Equipment & Services 19%

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A Healthy Report CardA Healthy Report CardThree consecutive yearsThree consecutive years

Sales ($B)……………EPS* ($/share)…….......ORONA* (%) …………..SG&A as % of Sales*....

Balance Sheet………….Shareholder Value…….

9.3%

$2.53

14.2%

“A” ratingDividend increase & share repurchase

$7.0 $7.8 $8.9

* Comparisons are non-GAAP. See appendix slide for GAAP reconciliation.

FY04 FY05 FY06

$2.93 $3.50

10.0%

13.5% 12.2%

11.3%

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d

Equity Affiliate Income >$100MEquity Affiliate Income >$100MFY06 Revenues 100% basis ~$1.6BFY06 Revenues 100% basis ~$1.6B

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South Africa$130M

Italy

$470MIndia

$85MThailand

$80M

Mexico

$515M

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Merchant GasesMerchant GasesDrive a Local Business on a Global Drive a Local Business on a Global ChassisChassis

$2.7 billion in FY’06 Sales– Liquid/Bulk, cylinder and small onsite gases to

diverse industrial markets

LocalBusiness

Regional Roles/Global Collaboration

Global Differentiators

Margin Improvement

& Growth

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Merchant GasesMerchant GasesStrong Growth & PerformanceStrong Growth & Performance

Sales

0

500

1000

1500

2000

2500

3000

3500

2004 2005 2006 2007E

Operating Income & Margin

0

100

200

300

400

500

600

2004 2005 2006 2007E10.0%

12.0%

14.0%

16.0%

18.0%

20.0%$MM $MM

• Continue delivering double-digit growth

• Explosive growth in Asia

• Expanding in Eastern/Central Europe

• New offerings success

• Achieve 20% operating margins

Revenue by region ($, FY07F)

Europe PG

North America

ROWEquipment

Europe LB

Asia

12% CAGR

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Tonnage GasesTonnage GasesMarket Leader in Refinery HydrogenMarket Leader in Refinery Hydrogen

Global #1 HyCO Position

4,600 Million SCFD

Comp ZComp Z

Comp Y

Onstream 2007

APD(1940MMscfd)

Comp XComp X

APD Comp. X Comp. Y Others

H2 Plant Operating Years

APD . . .Widening Gap

1995 2000 2005

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Plaquemine

Geismar

Lake Pontchartrain

Convent

Cosmar

Taft

Geismar10

NolaNew Orleans

Chalmette

LouisianaBaton Rouge

BPCarson

ShellWilmington

DominguezChannel

Conoco PhillipsWilmington

Conoco Phillips Carson

VAN NESSAVE.

SepulvedaBlvd

Anaheim Street

91

LongBeachArpt.

190th

St.

Carson H2

Wilmington H2

710

405

405

110

1

110

SouthernCalifornia

APD HyCO facilitiesH2 pipelineCO pipelineSyngas pipeline

1414630630

1414

1616

2121

CN RAIL Edmonton,Canada

SherwoodPark

Petro-CanadaImperial Oil

1616

Mont Belvieu

Port Arthur

Bayport

Battleground

Pasadena

City of Houston

Clear Lake

Baytown 2

LaPorte

Texas City

10

45

610

Lake CharlesBeaumont

225

73

6910

Zwijndrecht

To Moerdijk

Europoort

Pernis

Botlek

Rotterdam

40

40

Corunna

Suncor

Shell Refinery

40

ST.CLAIR RIVER

Air Products Canada

SarniaCanada

ValeroWilmington

Texas

Strong Hydrogen Pipeline Strong Hydrogen Pipeline PositionsPositions

SF BayRefineries

TarragonaRefinery

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Tonnage GasesTonnage GasesHigh Growth SegmentHigh Growth Segment

Sales

0

500

1000

1500

2000

2500

3000

2004 2005 2006 2007E

Operating Income & Margin

050

100150

200250

300350

400

2004 2005 2006 2007E10.0%

12.0%

14.0%

16.0%

18.0%

20.0%$MM $MM

• Significant profit growth and improvement in returns on capital while bringing on new investments

• Significant large plant bidding opportunities (both H2 & O2) continue

• Anticipate continued 10%-15% H2 growth

• Achieve 16% operating margins

Gross Investment by Region

North America

Asia

Europe & Middle East

18% CAGR

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Tonnage GasesTonnage GasesLeading the Way on GasificationLeading the Way on Gasification

A leading O2 supplier to gasification facilitiesDesigned, built, own, and operate units for Syngas, H2 and CO for pipeline systems:– NG based POX units– Syngas

cleanup/separation facilities from POX unit

Recent wins:– Eastman Gasifier in Texas– Wison II in China – BP Clean Power in

California

0

5,000

10,000

15,000

20,000

25,000

APD Comp X Comp Y Comp Z

O2 for Gasification/ ATR Customers(TPD)

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Hydrogen from Eastman Gasifier Project Hydrogen from Eastman Gasifier Project vs. vs. ““OffOff--GasGas”” FacilitiesFacilities

Hydrogen ~ 85% - 95% O/SH2 purification

Typical “Off-Gas” Facility

RawMaterials chemical

plant

Ethylene, etc

APD O2 Spare

#3

#2Pet Coke

Hydrogen toAir Products

>99% O/S

Methanol to Eastman

Ammonia and Methanol to Contract Customers

Eastman Facility

Primary

Secondary

TertiarySyngasGasifier

#1

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Equipment and EnergyEquipment and EnergyPositioned for Continued GrowthPositioned for Continued Growth

$.5 billion in FY’06 SalesBroad customer base– Oil & gas, utilities, chemicals and

metalsProducts– LNG heat exchangers, large air

separation units, hydrocarbon separators, helium containers, hydrogen fueling systems

Strategy– Leverage existing relationships– Develop energy projects– Leverage engineering technology

and products to grow gases businesses

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LNG Heat ExchangersLNG Heat ExchangersMarket LeadershipMarket Leadership

APD world leader in LNG equipment technologySustainable competitive advantage with AP-X®

technologyUS import terminals– 6 constructed; 7 bcfd– 22 approved; 37 bcfd – 27 proposed; 25 bcfd

Anticipate 2-3 LNG orders per year over next 5 years

Net Imports

BC

FD

25%

15%

US Natural Gas Gap

US NG Imports 2006 & 2020

Production

Consumption

2006 2020

BC

FD

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Electronics & Performance Materials:Electronics & Performance Materials:A natural extension of whatA natural extension of whatAir Products does bestAir Products does best

$2B+ segment under-pinned by technology, innovationFranchise positions / global leadershipStrategic positions with leading customers Operationally excellent global supply chainLeading edge applied technology, new products

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Electronics & Performance MaterialsElectronics & Performance MaterialsStrong PerformanceStrong Performance

Sales

0

500

1000

1500

2000

2500

2004 2005 2006 2007E

Operating Income & Margin

0

50

100

150

200

250

2004 2005 2006 2007E0.0%

3.0%

6.0%

9.0%

12.0%

15.0%$MM $MM

10% CAGR

• Excellent profit and return improvement driven largely by Electronics turn around

• Continue delivering double-digit growth

• Achieve 15% operating margins

Asia (40%)

North America (40%)

Latin America (2%)Europe

(18%)

Revenue by region ($, FY07F)

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Q3 YTD Q3 YTDFY06 FY07 Change

Consolidated Consolidated ’’07 YTD Financials:07 YTD Financials:Continued Solid PerformanceContinued Solid Performance

* Continuing Operations ** Comparisons are non-GAAP, see appendix for reconciliation

Sales ($B) $6.5 $7.5 16%

Diluted EPS ($/share)* $2.56 $3.21 25%

ORONA (%)** 10.9% 12.2% 130bp

SG&A as a % of Sales* 12.4% 11.8% (60bp)

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9.5%

10.5%

11.5%

12.5%Q

1'05

Q2'

05

Q3'

05

Q4'

05

Q1'

06

Q2'

06

Q3'

06

Q4'

06

Q1'

07

Q2'

07

Q3'

07

Q4'

07

On Track To Hit On Track To Hit ’’07 ORONA Goal07 ORONA Goal

ORONA Improvement

4 Qtr Rolling AvgCurrent Qtr Annualized

xx

x

x

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Margin Improvement FocusMargin Improvement Focus

Cost Cost ReductionReduction

200BP200BP

Improved Improved MixMix

50BP50BP

Plant Plant EfficiencyEfficiency

50BP50BP

2007 2010

14%17%

300 BP Operating Margin Improvement From …

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Beyond 2007Beyond 2007Sustainable DoubleSustainable Double--Digit GrowthDigit Growthat Superior Returnsat Superior Returns

Targeting EPS growth between 10-15%10 large ($25MM+) projects on stream ‘08New geographiesNew applications/products/markets

Cost reduction/productivityROCE well above our cost of capital +3-5%

More Focused, Less Cyclical,More Focused, Less Cyclical,Higher Growth, Higher ReturnsHigher Growth, Higher Returns

tell me morewww.airproducts.com

Thank you

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ORONA = Operating Return on Net AssetsOperating Income

Average (Net Assets – Equity Affiliate Investment)

ROCE = Return on Capital Employed(Oper Inc BT + Equity Affiliate Inc BT)x(1- ETR)

Average (Debt + Equity + Minority Interest)

ROCE … more inclusive– Equity Affiliate Income– After Tax

Return On Capital MeasuresReturn On Capital MeasuresTransitioning to ROCETransitioning to ROCE

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Return On Capital MeasuresReturn On Capital MeasuresSimilar TrendsSimilar Trends

* see appendix for ROCE calculation

8.5%

9.5%

10.5%

11.5%

12.5%

FY04 FY05 FY06

ORONA

ROCE

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Appendix:Appendix:Non GAAP ReconciliationNon GAAP Reconciliation

($ Millions, except per share data)

FY04 FY05 FY06 FY04 FY05 FY06(1) FY04 FY05 FY06Sales 7,031.9 7,768.3 8,850.4 7,031.9 7,768.3 8,850.4SG&A 956.2 1,013.6 1,080.7 39.4 38.5 995.6 1,052.1 1,080.7SG&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

Non GAAP MeasureGAAP Measure Proforma adjusts

Stock Option Expense

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Appendix:Appendix:ORONA NonORONA Non--GAAP ReconciliationGAAP Reconciliation

$ MillionsQuarter Ended Jun-05 Sep 05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

Operating Income Operating Income 257.6 258.0 253.5 282.6 291.9 232.9 332.3 324.7 364.6 Proforma Option Expense (11.1) (14.9) Global Cost Reduction Plan - - - - - 72.1 - - - Op Inc ex Global Cost Red/incl Option Expense 246.5 243.1 253.5 282.6 291.9 305.0 332.3 324.7 364.6

AssetsTotal Assets 10,309.8 10,408.8 10,624.9 11,032.5 11,290.8 11,180.7 11,500.0 11,878.0 12,568.8

Less Investment in Equity Affiliate 661.3 663.7 679.4 718.2 736.4 728.3 765.6 796.2 817.9

Less Current Assets Disc Ops 103.0 100.7 100.5 102.5 83.3 - - - - Less Non-Current Assets Disc Ops 142.1 133.5 130.7 128.5 126.4 - - - -

Net Assets from Cont Ops 9,403.4 9,510.9 9,714.3 10,083.3 10,344.7 10,452.4 10,734.4 11,081.8 11,750.9

ORONA ex Global Cost Reduction Plan with Option Expense in all periods4 Qtr Trailing Op Income 939.0 947.6 974.4 1,025.7 1,071.1 1,133.0 1,211.8 1,253.9 1,326.6

5 Qtr Avg Net Assets from Cont Ops 9,421.3 9,511.2 9,627.2 9,699.1 9,811.3 10,021.1 10,265.8 10,539.3 10,872.8

ORONA ex Global Cost Red. Plan w/ Option Exp. 10.0% 10.0% 10.1% 10.6% 10.9% 11.3% 11.8% 11.9% 12.2%ORONA for the Quarter (Op inc x 4 / 2 pt avg net assets) 10.3% 10.3% 10.5% 11.4% 11.4% 11.7% 12.5% 11.9% 12.8%

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Appendix:Appendix:ROCE CalculationROCE Calculation