Mike HiltonVP/GM Electronics and Performance MaterialsGoldman, Sachs and Co. May 10, 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 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.

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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%)

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Value PropositionValue PropositionProfitable GrowthProfitable Growth

Stability– Long term contracts– Consistent and predictable

cash flows – Strong balance sheet

Earnings growth– Volume loading– Pricing/margins– Productivity

Improving returns

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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

* Comparison is 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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1H FY06 1H FY07 Change

Consolidated 1H Financials:Consolidated 1H Financials:Continued Solid PerformanceContinued Solid Performance

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

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)

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Tonnage GasesTonnage GasesInvestments Drive GrowthInvestments Drive GrowthIndustrial gases vialarge on-sites orpipelines to refining, chemical, metallurgical industriesGrowing hydrogen franchise position; gasification and new oxygen technologies

FY’06 Performancevs. Prior Year:

Sales $2.2 billionup 28%

Op. Inc. $341 millionup 39%*

Strong volumes from six new refinery hydrogen plants

(35% capacity increase) and base business growth

* Comparisons are non-GAAP

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Equipment & EnergyEquipment & EnergyLNG Drives GrowthLNG Drives Growth

Air sep, hydrocarbon recovery/purification, natural gas liquefaction, helium distribution equipment; futureenergy technologies Oil and gas, utilities, chemical, metals markets

FY’06 Performancevs. Prior Year:

Sales $537 millionup 45%

Op. Inc. $69 millionup significantly*

Driven by orders forliquefied natural gas (LNG)

heat exchangers and air separation units

* Comparisons are non-GAAP

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Merchant Gases:Merchant Gases:Leveraging Strong DemandLeveraging Strong DemandIndustrial gases, certain medical / specialty gases supplied to a variety of marketsLiquid bulk, packaged gases, small on-sites

FY’06 Performancevs. Prior Year:

Sales $2.7 billionup 10%

Op. Inc. $470 millionup 18%*

Strong volume performancein all regions of the world,

supported by new customer signings and price increases

despite hurricane impacts* Comparisons are non-GAAP

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Healthcare:Healthcare:Focused on ImprovementFocused on ImprovementRespiratory therapies, home medical equipment, infusion services for patients in their homesAnticipate future improvement from higher U.S. volumes and lower operating costs

FY’06 Performancevs. Prior Year:

Sales $571 millionup 5%

Op. Inc. $8 milliondown significantly*

Operational issues in theU.S. and higher start-up

costs from a new U.K. home oxygen contract

* Comparisons are non-GAAP

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Electronics & Performance Materials:Electronics & Performance Materials:A Winning CombinationA Winning Combination

Specialty / bulk gases / chemicals, services and equipment for electronics; performance chemical solutions for various end marketsSurface science expertise delivers performance

FY’06 Performancevs. Prior Year:

Sales $1.9 billionup 12%

Op. Inc. $195 millionup 48%*

Strong volumes drivenby semiconductor and

flat-panel display market demand and Tomah3Products acquisition

* Comparisons are non-GAAP

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Electronics & Performance Materials Electronics & Performance Materials InnovationInnovation--based business modelbased business model

$2B segment under-pinned by technology, innovationFranchise 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

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Performance MaterialsPerformance MaterialsDimensionsDimensions

A global platform with >$700MM in sales3 key product lines + new initiatives platforms~50% of sales outside of North AmericaFormulated products that drive leadership positionsGlobal manufacturing, R&D, applied technology infrastructure

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ElectronicsElectronicsDimensionsDimensions

~$1.3 billion bulk gas, specialty material and equipment businessDriven 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

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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

Customers – Long-term relationships that leverage APD global

business infrastructureSupply Chain– World class network of facilities and supply positions in

critical geographies– Operationally excellent systems delivering the highest

quality and reliability at the lowest costProcess– 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

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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

Steady Progress to ORONA GoalSteady Progress to ORONA Goal

ORONA Improvement

4 Qtr Rolling Avg

* see appendix for ORONA calculation

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Our FYOur FY’’07 Commitments07 Commitments

Achieve 12.5% ORONACapture profitable growthImprove Healthcare performance Simplify ElectronicsRestructure ChemicalsDrive productivity to thebottom line

Add Photo

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Beyond 2007Beyond 2007Growth LeversGrowth 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

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

Targeting EPS growth between 10-15%6-7% Market growth2-4% New geographies/applications/products2-4% Productivity/margin expansion

10-15% Total

ROCE 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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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