Paul HuckSenior VP and CFOGoldman SachsBasic Materials ConferenceMay 21, 2008

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ForwardForward--Looking Statements Looking Statements NOTE: This document 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 document 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 the Company; 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 a natural disaster; the ability to attract, hire and retain qualified personnel in all regions of the world where the company operates; charges related to portfolio management, goodwill recoverability, business restructuring and cost reduction actions; the success of implementing cost reduction programs; the timing, impact, and other uncertainties of future acquisitions or divestitures; unanticipated contract terminations or customer cancellation or postponement of projects or sales; significant fluctuations in interest rates and foreign currencies from that currently anticipated; the continued availability of capital funding sources in all of the company's foreign operations; the impact of new or changed environmental, healthcare, tax or other legislation and regulations in jurisdictions in which the Company 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 document 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

$10B companyDiverse markets and geographiesPositioned for continued long-term value creation

FY07 Geographic Sales

United States(44%)

Asia(17%)

Europe(32%)

Canada/LatinAmerica (5%)

FY07 Segment SalesROW (2%)

MerchantGases(34%)

TonnageGases(31%)

Equipment & Energy

(6%)

Healthcare(7%) Electronics &

Performance Materials(22%)

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Air Products Value PropositionAir Products Value PropositionProfitable GrowthProfitable Growth

Stability– Long term contracts– Consistent and predictable

cash flows – Strong balance sheet

Growth– Solid project backlog– High bidding activity– Energy opportunities

Improving returns– Margin improvement– Productivity– Increasing dividends– Share buyback

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Merchant

Transforming Air ProductsTransforming Air ProductsCreating Shareholder ValueCreating Shareholder Value

FY00 Sales $5.7B

FY07 Sales $9.4B

Merchant Tonnage

Equipment & Energy

HealthcareElectronics & Performance

Materials

Tonnage

Chemicals

Electronics & Perf Mat’ls

Equipment & Energy

Healthcare

6

Supply Modes Supply Modes Durable Business ModelsDurable Business Models

Package Gases & Specialty Materials

25%

Onsite/Pipeline36%

Liquid/Bulk21%

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

Contractual energy pass-throughFormula escalation

3-5 year contractsRegional business

Cost pass-through/surcharges

Equipment & Services 18%

7

Italy

$480M

Equity Affiliate Income $114MEquity Affiliate Income $114MFY07 Revenues 100% basis $2BFY07 Revenues 100% basis $2B

7

South Africa$135M

India

$90MThailand

$85M

Mexico

$550M

88

Merchant GasesContinued Solid Performance

Sales

0

500

1000

1500

2000

2500

3000

3500

2004 2005 2006 2007

Operating Income & Margin

0

100

200

300

400

500

600

700

2004 2005 2006 200710.0%

12.0%

14.0%

16.0%

18.0%

20.0%$MM $MM

Revenue by region ($, FY07)

Europe PG

North America

ROWEquipment

Europe LB

Asia

12% CAGR

• Continue delivering double-digit growth- Strong growth in Asia - Expanding in Eastern/CentralEurope

- New offerings success • Achieve 20% operating margins

99

Tonnage GasesHigh Growth Segment

Sales

0

500

1000

1500

2000

2500

3000

2004 2005 2006 2007

Operating Income & Margin

050

100150200250300350400450

2004 2005 2006 200710.0%

12.0%

14.0%

16.0%

18.0%

20.0%$MM $MM

Investment by Region

North America

Asia

Europe & Middle East

18% CAGR

• 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% H2growth

1010

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 Positions

SF BayRefineries

TarragonaRefinery

1111

Electronics & Performance MaterialsContinued Margin Improvement

Sales

0

500

1000

1500

2000

2500

2004 2005 2006 2007

Operating Income & Margin

0

50

100

150

200

250

2004 2005 2006 20070.0%

3.0%

6.0%

9.0%

12.0%

15.0%$MM $MM

11% CAGR

Asia (40%)

North America (40%)

Latin America (2%)Europe

(18%)

Revenue by region ($, FY07) • Strong top line growth over the past four years

• Excellent profit and return improvement

• Near term focus on further margin improvement

1212

Margin Improvement Focus

Cost Cost reductionreduction

200bp200bp

Improved Improved mixmix

50bp50bp

Plant Plant efficiencyefficiency

50bp50bp

2007 2010

14%17%

300 basis point operating margin improvement from …

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Sales ($B)………………EPS ($/share)…….......ORONA (%) …………..ROCE (%)……………..SG&A / Sales (%)……

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

A Healthy Report CardA Healthy Report CardFour consecutive yearsFour consecutive years

9.6%$2.45

14.7%

“A” ratingDividend increase & share repurchase

$6.4 $7.1 $8.2

FY04 FY05 FY06

$2.80 $3.35

9.9%

14.2% 12.8%

11.3%

FY07

$9.4

$4.20

12.4%

12.2%9.6% 10.1% 11.2% 12.3%

* Comparisons are non-GAAP.

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Sales ($B) $4.8 $5.1 11%

SG&A as a % of Sales 12.2% 12.0% (20bp)

Operating Margin 13.7% 14.5% 80bp

Diluted EPS ($/share) $1.96 $2.39 22%

ROCE (%) 11.7% 12.4% 70bp

Q2 YTD Q2 YTDFY07 FY08 Change

Consolidated Consolidated ’’08 YTD Financials:08 YTD Financials:Delivering LeverageDelivering Leverage

Comparisons are non-GAAP

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Outlook for Industrial GasesOutlook for Industrial GasesContinued StrengthContinued Strength

Global outlook for gases tracking on forecast

Future demand drivers are strong– High energy costs efficiencies– High capital costs debottlenecking– Environmental pressures new applications

Well positioned globally with market leadership– Hydrogen for clean fuels– Oxygen for gasification– Electronics

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2008 and Beyond2008 and BeyondSustainable DoubleSustainable Double--Digit GrowthDigit Growthat Superior Returnsat Superior Returns

Targeting sustainable double-digit EPS growth– 15% to 19% EPS growth in FY 08

● Targeting 300bp margin improvement over3 years– Cost reduction and SG&A improvement– Accelerated productivity– 100 basis points in FY’08

Targeting a ROCE 3% to 5% above our cost ofcapital

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

tell me morewww.airproducts.com

Thank you