Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Investor Presentation (March 2020)
23 slides from Chart Industries's investor presentation, Mar 26, 2020
Slide 1: Chart Industries Investor meetings, March 2020
Chart Industries Investor meetings, March 2020 Exhibit 99.1
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: Recent Actions / Updates (1/4)
Recent Actions / Updates (1/4) © 2020 Chart Industries, Inc. Confidential and Proprietary Safety of Team Members Following all government guidelines Ensuring availability of critical safety materials (gloves, masks, hand sanitizer) Remote working where applicable Social distancing, including timing
Slide 4: Recent Actions / Updates (2/4)
Recent Actions / Updates (2/4) © 2020 Chart Industries, Inc. Confidential and Proprietary Operations Designated Essential Critical Infrastructure Work by the U.S. Department of Homeland Security, allowing production to continue Produce medically critical product in 6 global locations (U.S., Europe,
Slide 5: Recent Actions / Updates (3/4)
Recent Actions / Updates (3/4) © 2020 Chart Industries, Inc. Confidential and Proprietary Backlog No cancellations year to date in backlog Ability to redistribute backlog between multiple Chart manufacturing sites Venture Global Calcasieu Pass revenue forecast (~$100M) for 2020 is unchanged Cost Red
Slide 6: Recent Actions / Updates (4/4)
Recent Actions / Updates (4/4) © 2020 Chart Industries, Inc. Confidential and Proprietary Balance Sheet $450M of liquidity as of 12/31/19, including $119M of cash Proactively working with existing lender group for “just in case” covenant relief Managing working capital and capital expenditures (flex
Slide 7: Chart at a Glance
Chart at a Glance Cryogenics Brazed Aluminum Heat Exchangers (BAHX) and Cold Boxes Integrated systems and aftermarket services for gas processing, LNG, refining and petrochemical, power and general industrial applications Leader in technological advancements and system engineering FinFans Air Cooled
Slide 8: Revenue / Profitability by End Market
Revenue / Profitability by End Market © 2020 Chart Industries, Inc. Confidential and Proprietary Energy Related: 45% Industrial Gas & CryoBio & Other: 55% (1) 2019 Revenue excludes 1H 2019 AXC. 2019 Revenue: $1.3 Billion (1) 2019 Gross Margin: $0.4 Billion (1) Energy Related: 43% Industrial Gas & Cr
Slide 9: Broadest Product Offering for Industrial Gas and Energy
Broadest Product Offering for Industrial Gas and Energy © 2020 Chart Industries, Inc. Confidential and Proprietary Brazed Aluminum Heat Exchangers Packaged Gas Systems Cryogenic Bulk Storage Tanks Cryogenic Freezers & Biological Storage Nitrogen Dosing & Food Preservation LNG Virtual Pipeline Soluti
Slide 10: Bulk and Microbulk Tanks
Bulk and Microbulk Tanks Perma-Cyl® MicroBulk Storage Systems Provide liquid oxygen storage for respiratory applications at outpatient centers, nursing homes, clinics, and long-term care Storage for mandatory 24 hour backup supply of liquid oxygen to a Hospital's primary bulk tank storage of oxygen
Slide 11: Cryobiological Shippers
Cryobiological Shippers Vapor shippers used for shipment of biological samples, including viruses IATA (International Air Transport Association) approved containers rated as safe to transport hazardous biological samples Stainless steel freezers are used for storage of vaccinations, tissue, cells, b
Slide 12: Liquid Nitrogen Dosing Systems
Liquid Nitrogen Dosing Systems Liquid Nitrogen Dosing Systems are critical to food preservation, bottling water and other beverages These are used for canned drinking water in emergency situations Chart supports the emergency water distribution efforts of non-profit Can'd Aid 2020 Chart Industries I
Slide 13: Why Do Customers Choose Chart?
Why Do Customers Choose Chart? © 2020 Chart Industries, Inc. Confidential and Proprietary UPFRONT ENGINEERING TURNKEY SOLUTIONS BROADEST PRODUCT OFFERING APPLIED R&D AND LIFECYCLE SERVICES + +
Slide 14: Our Focused Strategy
Our Focused Strategy A B D C Broadest Product Offering for Industrial Gas & Energy Application and Customer Expansion Cryo-pump opportunity Repair & Service Specialty Markets Innovative Solutions Upfront Engineering Partnerships for new turnkey solutions Retrofit for efficiencies existing brownfield
Slide 15: Macro Trends Driving Our Business
Macro Trends Driving Our Business Reducing annual CO2 emissions from 36.8 to 16.5 billion tons Global power demand to increase 40% by 2035 and 85% by 2050 Water scarcity impacts 40% of the world’s population © 2019 Chart Industries, Inc. Confidential and Proprietary Paris Agreement IMO 2020 Subsidie
Slide 16: Two Growth Drivers
Two Growth Drivers Liquefaction, including Big LNG Marine Transportation (Rail, OTR, Trailers) Fueling Power © 2019 Chart Industries, Inc. Confidential and Proprietary #1 = Global LNG / Clean Energy Infrastructure Buildout #2 = Specialty Markets Storage Food & Beverage Hydrogen Lasers Water Treatmen
Slide 17: Leveraging Our Global Operations
Leveraging Our Global Operations © 2020 Chart Industries, Inc. Confidential and Proprietary Corporate Headquarters Ball Ground, GA D&S West Ball Ground, GA New Prague, MN Fremont, CA McCarran, NV Houston, TX Brentwood, NH Americas E&C Cryogenics New Iberia, LA La Crosse, WI The Woodlands, TX Frankli
Slide 18: Being Responsible Globally
Being Responsible Globally © 2020 Chart Industries, Inc. Confidential and Proprietary Produce products used in clean energy and emissions reductions Customer offering of LifeCycle services to prolong product life and efficiency Community involvement Environmental Inclusive hiring practices Investing
Slide 19: Helping to Solve Customers' Environmental Challenges
Helping to Solve Customers’ Environmental Challenges 1. Ching-Chih Chang "Life Cycle Assessment of Carbon Footprint in Public Transportation” 2. Hydrogen Council and McKinsey & Company “Path to Hydrogen Competitiveness” We design/build liquid Hydrogen (LH2) storage tanks integrated into H2 fuel cell
Slide 20: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy © 2020 Chart Industries, Inc. Confidential and Proprietary 2020 priority is debt paydown $450M of liquidity as of 12/31/19, including $119M of cash Covenant = 4.5X currently; steps down to 4.0X (6/30/20); 3.5X (9/30/20) Share repurchase program in place; up to
Slide 21: Appendix
Appendix © 2020 Chart Industries, Inc. Confidential and Proprietary
Slide 22: Q4 and Full Year 2019 Adjusted EPS
Q4 and Full Year 2019 Adjusted EPS Other one-time items were related to: aluminum cryobiological tank recall reserve expense $0.01 and $0.12 in Q4 2018 and FY 2018 respectively and $0.01 in FY 2019; Tax Reform / transition tax related adjustments ($0.05) in Q4 2018, and $0.02 and ($0.05) in FY 2019
Slide 23: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation © 2020 Chart Industries, Inc. Confidential and Proprietary (1) “Net earnings, adjusted” is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to net income in accordance with U.S. GAAP. Reconciliation of Net Income (U.S
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