Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Investor Presentation (February 2019)
17 slides from Chart Industries's investor presentation, Feb 22, 2019
Slide 1: Chart Industries, Inc. Investor Presentation February 2019
Exhibit 99.1 Chart Industries, Inc. Investor Presentation February 2019 © 2019 Chart Industries, Inc. Confidential and Proprietary © 2019 Chart Industries, Inc. Confidential and Proprietary
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company’s business plans, including statements regarding the
Slide 3: Leading Supplier of Mission Critical Equipment
Leading Supplier of Mission Critical Equipment 1 Energy & Chemical 2 Distribution & Storage ▪ ▪ Supply Brazed Aluminum Heat Exchangers (BAHX), Offer a complete portfolio of cryogenic distribution and Air Cooled Heat Exchangers (ACHX) and Cold storage equipment Boxes ▪ Spearhead innovation in cryogen
Slide 4: December 31, 2018 Backlog
December 31, 2018 Backlog Chart Industries1,2,3 Energy & Chemicals2,3 2016 $326 2016 $100 2017 $446 2017 $211 2018 $568 , +27% 2018 $253 , +20% +9% ex VRV +1% ex VRV Distribution & Storage East3 Distribution & Storage West 2016 $112 2016 $114 2017 $117 2017 $119 2018 $185 , +59% 2018 $130 , 9% +22%
Slide 5: Base Business Growth Levers by Segment
Base Business Growth Levers 2018 by Segment Growth Areas 2019 Expectation • Big LNG (+$500M) E&C • Petrochemical E&C 2018 Sales: $390M • Fans Organic Sales + 8 - 12% 2018 Gross Margin: 23.4% • ACHX Gross Margin +50 - 100 bps • Repair and Service • IMO 2020 / Marine D&S East • Leveraging VRV D&S East
Slide 6: Where do we play in LNG?
Where do we play in LNG? *Source: Scotia Howard Weil 5 © 2019 Chart Industries, Inc. Confidential and Proprietary
Slide 7: LNG Supply / Demand
LNG Supply / Demand Demand forecast to 2025 Supply/Demand Deficit Forecast Source: Wood Mackenzie; 2018 World LNG Report, published by IGU and HIS Market; Scotia Howard Weil estimates. • Current buildout cycle serving upcoming 2022-2023 supply-demand deficit • Expect ~100 MTPA of related orders in 2
Slide 8: Big LNG Order Opportunities: 2019
Big LNG Order Opportunities: 2019 Number Project Chart Customer Operator Size Chart Content Expected Timing of Chart orders 1 Calcasieu Pass BHGE Venture Global 10 MTPA 18 cold boxes, BAHX Throughout 2019 2 Driftwood Bechtel Tellurian 27 MTPA IPSMR, cold boxes, BAHX, Q2/Q3 2019 for 1st ACHX phase 3
Slide 9: M&A: A Way to Accelerate Growth
M&A: A Way to Accelerate Growth Acquisition Criteria: Prioritize Key Market Opportunities: ▪ Strong level of strategic fit SERVICE & ▪ TEMPERATURE High degree of leveragability REPAIR EXPANSION (specific and attainable BUILDOUT synergies) ▪ Proven growth and profitability ▪ Reasonable price expectat
Slide 10: Focused Gas to Liquids Offerings
Focused Gas to Liquids Offerings Exploration, Value Processing/ Re- Lifecycle Production & Treatment Transportation Storage Proposition/ Pipeline Liquefaction gasification Services Application ACHX Orca Microbulk Engineered Tanks Ambient Vaporizers Installation & Startup N2 Dosing Cold Boxes Trailer
Slide 11: Capital Allocation Strategy
Capital Allocation Strategy Organic growth initiatives ▪ Expect $250M Free Cash Flow1 over the next 3 years Deleverage ▪ Long-term leverage target of 2x – 3x ▪ M&A Capital allocated to position the company for growth and maintain a Direct shareholder return strong balance sheet (when/if appropriate)
Slide 12: 2019 Guidance
2019 Guidance FY 2018 Results Prior FY 2019 Guidance Full Year 2019 Sales Sales Sales $1.08B $1.24B - $1.30B $1.26B - $1.31B 28.6% growth 16% - 18% growth 17% - 22% growth 13.4% organic growth 6% - 7% organic growth 7%-9% organic growth Adjusted EPS Adjusted EPS Adjusted EPS $2.02 $2.40 - $2.75 $2.5
Slide 13: 2021 Financial Targets
2021 Financial Targets ~ 40+% 700bps 21% Revenue Growth to $1.7B Operating Margin Expansion to ~17% of Sales from Aftermarket from 13% ▪ Leading Positions Across the Portfolio ▪ Well-Balanced Portfolio of Long-Cycle and Short-Cycle Products ▪ Consistent Growth in Operating Income, EPS and FCF Predic
Slide 14: Chart Investment Highlights
Chart Investment Highlights Leading diversified industrial global manufacturer with diverse Operate in attractive, growing and broad product offering markets Innovative technical expertise Cross-operating segment scale and and reputation collaboration Longstanding relationships with Industry leading
Slide 15: Appendix
Appendix © 2019 Chart Industries, Inc. Confidential and Proprietary © 2019 Chart Industries, Inc. Confidential and Proprietary
Slide 16: Financial Results by Segment
Financial Results by Segment Energy & Chemicals Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 $M Sales $39.9 $40.0 $46.6 $99.1 $225.6 $89.9 $100.8 $98.1 $101.7 $390.5 Gross Margin 8.4 5.4 8.6 22.7 45.1 19.4 21.3 26.9 21.6 89.2 GM % 21.1% 13.5% 18.5% 22.9% 20.0% 21.6
Slide 17: www.chartindustries.com
www.chartindustries.com © 2019 Chart Industries, Inc. Confidential and Proprietary © 2019 Chart Industries, Inc. Confidential and Proprietary
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