Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Q3 2019 Earnings Presentation
21 slides from Chart Industries's earnings presentation, Oct 17, 2019
Slide 1: Chart Industries Third Quarter 2019
Exhibit 99.2 Chart Industries Third Quarter 2019 October 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 presentation 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 com
Slide 3: Themes
Themes 2 © 2019 Chart Industries, Inc. Confidential and Proprietary
Slide 4: Q3 2019 Sales, Orders & Backlog
Q3 2019 Sales, Orders & Backlog All results reflect continuing operations Sales Q319 +31.6% $358 Q318 $272 $272 Legacy VRV AXC $60 $26 Q3 FY18 Q3 FY19 Orders Q319 +8.3% Q318 $286 $264 $240 Legacy VRV AXC $23 $23 Q3 FY18 Q3 FY19 Backlog Q319 $756 +50.9% Q318 $626 $502 Legacy VRV AXC $82 $48 Q3 FY18 Q
Slide 5: Global LNG Infrastructure Build
Global LNG Infrastructure Build Liquefaction Marine Transportation Fueling Power Liquefaction can Transportation, LNG by truck uses Fueling stations for LNG is used for use Chart’s consumption, and Chart’s HLNG LNG, CNG and bio- power generation IPSMR® bunkering of LNG cryogenic cylinder gas vehicle
Slide 6: Worldwide Adoption of Clean
Worldwide Adoption of Clean! Planning to reduce CO2 emissions by Ban on gasoline and diesel No non-zero emission 90% below 2010 levels by 2050 for ICE by 2040 cars for sale after 2030 new passenger vehicles, assumes almost 100% EV Ban on fossil fuel car sales by Ban on imported fossil fuel Plans to
Slide 7: ssLNG Order Opportunities
ssLNG Order Opportunities Number Project Chart Customer Operator Chart Content Expected Timing of Chart orders 1 Utility-scale project for U.S. East ODIN Confidential C50N Booked Coast 2 Utility-scale project for Northeast ODIN Confidential C50N, 5x100k gallon Booked storage 3 NorthEast Energy Cente
Slide 8: Big LNG Project Timing
Big LNG Project Timing (1) Based upon either customer announced expected timing or typical order trend post FERC approval. Anticipated revenue timing is based on current status of ongoing project or discussions with customers for anticipated new orders. 7 © 2019 Chart Industries, Inc. Confidential a
Slide 9: Big LNG Order Opportunities
Big LNG Order Opportunities Number Project Chart Customer Operator Size Chart Content 1 –BOOKED Gimi(Tortue) Black & Veatch Golar 3.75 MTPA 4x Cold boxes, BAHX 2 –BOOKED Calcasieu Pass BHGE Venture Global 10 MTPA 18 cold boxes, BAHX 3 Driftwood Bechtel Tellurian 27 MTPA (Phase 1 16 IPSMR®, cold boxe
Slide 10: Global LNG Demand Grows 5%
Global LNG Demand Grows 5% Global LNG demand is predicted to grow ~5% annually through 2030. New LNG supply Global LNG Supply and Demand (MTPA) brought online 2018-19 Year Project Capacity 600 (MTPA) 2018 Pluto LNG T1 Debottleneck 2 0.2 2018 Wheatstone LNG T1 4.5 500 2018 Yamal LNG T1 5.5 2018 Cove
Slide 11: Specialty Markets
Specialty Markets Potential Market End-use of Products Market Size(1) Drivers of Size Opportunity Food and Food preservation equipment $500M • Nitro-beverage changeover Beverage Nitrogen dosing equipment Liquid CO storage and supply / delivery systems 2 • Legalization of cannabis Cannabis Us
Slide 12: Q3 2019 Margin Expansion Actions
Q3 2019 Margin Expansion Actions * Excluding acquisition synergies ($M) Facility Reduction Headcount Global Product Line Q1 Q2 Q3 YTD / Consolidation Reduction / Sourcing Rationalization Actions Actions Actions Total Other (Annualized) (Annualized) (Annualized) (Annualized) E&C Cryo Consolidated bac
Slide 13: Integration of AXC and VRV
Integration AXC and VRV 1 Revenue synergies: 12 new customers 60% of original target cost synergies and over $8 million of sales ($20 million in first 12 months of ownership) were achieved in first three Exited 2 leases months Synergies Insourced painting and inner vessels Increased cost s
Slide 14: Q3 Adjusted EPS
Q3 Adjusted EPS $ millions, except per share amounts Continuing Operations Q3 2019 Q3 2018 Change v. PY YTD 2019 YTD 2018 Change v. PY Income $18.7 $21.5 ($2.8) $34.0 $35.6 ($1.6) from continuing operations Reported EPS $0.51 $0.65 ($0.14) $0.97 $1.11 ($0.14) Restructuring and transaction- 1 0.17 0.
Slide 15: 2019 Guidance
2019 Guidance Ref # Description Revenue ($M) Adjusted EPS(1) 1 2018 Actual $1,084 $2.02 2 Organic growth +10.5 months incremental 170 – 220 0.27 - 0.47 VRV + synergies 3 Pricing, sourcing, net of material cost; and 3 – 4 0.16 - 0.26 2018 restructuring actions 4 2019 incremental restructuring benefit
Slide 16: 2020 Market and Business Outlook
2020 Market and Business Outlook $ in M 2020 2020 2020 2019 Specific ½ Year Market Organic Total Segment / Driver Revenue Known AXC Growth Growth Growth Midpoint Projects Revenue (%) (%) (%) D&S East $295 7% Industrial Gas 130 3% 3% LNG Infrastructure (includes ssLNG) 75 10% 10% China (LNG and IG) 9
Slide 17: 2020 Outlook (Current and Prior)
2020 Outlook (Current and Prior) Current Prior # Description Revenue Adjusted EPS Revenue Adjusted EPS (1) (1) 1 New 2019 Guidance $1,330 -$1,350 $2.70 -$2.90 2 No Change 2020 Base Outlook from June 2018 $1,380 -$1,400 $3.60 -$3.70 3 New Organic Growth (7% -9%) 95 –130 0.70 –0.85 4 Update Calcasieu
Slide 18: Delivering Profitable Growth
Delivering Profitable Growth Chart delivered solid revenue growth in a challenging market. By improving our profitability (margins) we have increased earnings per share at an even greater rate. Total Sales Adjusted EPS ($ in Millions) ($ per share) 1,900 $6.00 2020 FY 1,700 2020 FY Guidance $5.00 Gu
Slide 19: Our New Motto
Our New Motto 18 © 2019 Chart Industries, Inc. Confidential and Proprietary
Slide 20: Appendix
Appendix © 2019 Chart Industries, Inc. Confidential and Proprietary © 2019 Chart Industries, Inc. Confidential and Proprietary
Slide 21: FY17, FY18 Adjusted EPS
FY17, FY18 Adjusted EPS $ millions, except per share amounts Continuing Operations FY 2017 FY 2018 Income $26.2 $53.6 from continuing operations Reported EPS $0.84 $1.67 1 Restructuring and transaction-related costs (2) 0.48 0.25 2 Aluminum cryobiological tank recall reserve expense - 0.09 3 VRV Inv