Paul Huck, VP & CFO Lehman BrothersFebruary 8, 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%)

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

5 Revenue basis includes equity affiliates, excludes sale of equipment and cutting & welding supplies.

Gases Supply ModesGases Supply ModesFocusing on StabilityFocusing on Stability

Specialty Gas 16%

IndustrialCylinders

13%

Onsite/Pipeline39%

Liquid Bulk32%

FY’05FY’95

Onsite/Pipeline27%

IndustrialCylinders

21%

Liquid Bulk41%

Specialty Gas 11%

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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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Increase Return on CapitalIncrease Return on CapitalOur Highest PriorityOur Highest Priority

12.5% ORONA in FY’07

Productivity

Plant loadingTonnage Gases Tonnage Gases

& Equipment & Equipment and Energyand Energy

HealthcareHealthcareOtherOther

Capital discipline

Electronics & Electronics & Perf MatPerf Mat’’lsls MerchantMerchant

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Significant changes in 2006Significant changes in 2006Positioning for the futurePositioning for the future

Announced Chemicals restructuring March ’06

Sold Geismar PUI facility & Amines businesses

First $500MM of $1.5B share repurchase completed

Reorganized to focus on growth

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

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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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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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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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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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($Millions)Fav/(Unfav) vs.

Q1 FY07 Q1 FY06 Q4 FY06*

Consolidated Q1 Financials:Consolidated Q1 Financials:FY07 Off To A Good StartFY07 Off To A Good Start

* Comparisons v. PQ are non-GAAP, see appendix for reconciliation

● Sales $2,433 21% 3%

● Diluted EPS $1.03 29% 10%

● ORONA 11.8% 170bp 50bp

● SG&A as a % of Sales 11.7% 70bp 10bp

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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

20072007Delivering 12.5% ORONADelivering 12.5% ORONA

ORONA Improvement

4 Qtr Rolling Avg

* see appendix for ORONA calculation

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Our FYOur FY’’07 Commitments07 Commitments

Achieve 12.5% ORONA this yearCapture profitable growthImprove Healthcare performance Simplify ElectronicsRestructure ChemicalsDrive productivity to thebottom line

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

Add Photo

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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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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 growth

2-4% New geographies/applications/products

2-4% Productivity/margin expansion

10-15% Total

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

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:NonNon--GAAP ReconciliationGAAP Reconciliation

(1) Global Cost Reduction Plan

% Change% FY06 Q4 Pro forma Non-GAAP

Q107 vs. Q406 - Total Company Q406 Q107 Change Adjustment(1) Q406 Q107 MeasureOperating Income 232.9 332.3 43% 72.1 305.0 332.3 9%Net Income From Continuing Ops 163.5 230.3 41% 46.8 210.3 230.3 10%Diluted EPS - Continuing Operations $0.73 $1.03 41% $0.21 $0.94 $1.03 10%

% Change% FY06 Q4 Pro forma FY06 Non-GAAP

FY07 guidance - EPS Growth FY'07 FY'06 Change Adjustment(1) Pro forma Measure

Diluted EPS - Continuing Ops $3.98-$4.10 $3.29 21%-25% $0.21 $3.50 14%-17%

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Appendix:Appendix:ORONA CalculationORONA Calculation

$ MillionsQuarter Ended Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep 05 Dec-05 Mar-06 Jun-06 Sep-06

Operating Income

Operating Income 200.5 206.6 232.6 246.7 237.7 242.2 257.6 258.0 253.5 282.6 291.9 232.9

Proforma Option Expense (12.0) (12.1) (12.7) (12.2) (11.0) (10.9) (11.1) (14.9)

Global Cost Reduction Plan - - - - - - - - - - - 72.1

Op Inc ex Global Cost Red/incl Option Expense 188.5 194.5 219.9 234.5 226.7 231.3 246.5 243.1 253.5 282.6 291.9 305.0

Assets

Total Assets 9,473.5 9,786.6 9,962.5 9,930.0 10,040.4 10,653.4 10,707.3 10,309.8 10,408.8 10,624.9 11,032.5 11,290.8 11,180.7

Less Investment in Equity Affiliate 553.5 585.0 601.8 608.2 629.8 672.1 672.8 661.3 663.7 679.4 718.2 736.4 728.3

Less Current Assets Disc Ops 103.3 119.9 137.4 113.9 126.8 110.4 105.9 103.0 100.7 100.5 102.5 83.3 - Less Non-Current Assets Disc Ops 150.0 145.6 145.1 146.7 149.6 146.7 145.2 142.1 133.5 130.7 128.5 126.4 -

Net Assets from Cont Ops 8,666.7 8,936.1 9,078.2 9,061.2 9,134.2 9,724.2 9,783.4 9,403.4 9,510.9 9,714.3 10,083.3 10,344.7 10,452.4

ORONA ex Global Cost Reduction Plan with Option Expense in all periods

4 Qtr Trailing Op Income 837.4 875.6 912.4 939.0 947.6 974.4 1,025.7 1,071.1 1,133.0

5 Qtr Avg Net Assets from Cont Ops 8,975.3 9,186.8 9,356.2 9,421.3 9,511.2 9,627.2 9,699.1 9,811.3 10,021.1

ORONA ex Global Cost Reduction Plan with Option Expense 9.3% 9.5% 9.8% 10.0% 10.0% 10.1% 10.6% 10.9% 11.3%

Dec-06

332.3

332.3

11,500.0

10,734.4

1,211.8

10,265.8

11.8%

765.6

-

--

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Appendix:Appendix:ROCE CalculationROCE Calculation