Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Q2 2021 Earnings Presentation
31 slides from Chart Industries's earnings presentation, Jul 22, 2021
Slide 1: Second Quarter 2021 Results
Chart Industries SECOND QUARTER 2021 RESULTS Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements CERTAIN STATEMENTS MADE IN THIS PRESENTATION ARE FORW ARD-LOOKING STATEMENTS W ITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORW ARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING THE COMPANY’S BUSINESS PLANS, INCLUDING STATEMENTS REGARDING
Slide 3: Setting the Stage… Expecting Significant Growth This Decade
Setting the Stage… Expecting Significant Growth This Decade 3
Slide 4: Multiple Macro Tailwinds Creating a Perfect Storm in the Roaring 2020s
Multiple Macro Tailwinds Creating a “Perfect Storm” in the “Roaring 2020s” 4© 2021 Chart Industries, Inc. Confidential and Proprietary Increasing Global Activity Clean Energy Transition Government Support LNG is Active • Restaurant and travel very active = food & bev activity + CO2 equipment, dosers
Slide 5: Chart Records Set in Q2 2021
Chart Records Set in Q2 2021 Include: 5 © 2021 Chart Industries, Inc. Confidential and Proprietary $millions Orders Backlog Sales Specialty Products Hydrogen/Helium Water Treatment HLNG Vehicle Food & Beverage CCUS Space Other Repair, Service, Leasing Cryo-Lease PRS Cryo Tank Solutions Storage Equip
Slide 6: Specialty Near-Term and 2030 Addressable Markets
Specialty Near-Term and 2030 Addressable Markets © 2021 Chart Industries, Inc. Confidential and Proprietary 6 # Specialty Area Near-Term TAM ($M) 2030 TAM ($M) Source of GTLS TAM in 2030 1 Hydrogen & Helium $2,950 $24,000 • Per new Hydrogen Council report on increasing investment rate and our curren
Slide 7: Chart's Strategic Acquisitions and Investments
© 2021 Chart Industries, Inc. Confidential and Proprietary 7 Chart’s Strategic Acquisitions and Investments 2020 Development Agreement for LH2 automotive Completed master supply agreement Acquisition of cryogenic and H2 trailer business and former microbulk business 30M Euro investment with commerci
Slide 8: Past Months' Inorganic Deals
Past 12 Months’ Inorganic Deals # Company Name Spec Market Acquisition or Minority? Date Closed Update 1 McPhy Hydrogen Minority 10/14/2020 • Working on multiple commercialized large-scale plant opportunities together • Access to Hynamics, French utility, French government 2 Worthington Cryo trailer
Slide 9: Q2 2021 Results
aE. C8 Q2 2021 Results
Slide 10: Second Quarter 2021 Summary
$ millions, except per share amounts Second Quarter 2021 Summary Record order quarter (third consecutive record order quarter) including one helium liquefaction project resulting in record backlog (third consecutive quarter of record backlog) Sales in line with consensus and as anticipated based on
Slide 11: Material Cost Impact and Global Supply Situation
© 2021 Chart Industries, Inc. Confidential and Proprietary 11 Material Cost Impact to Chart: • Secured raw material through end of 2021 via contract, which impacted Q2 2021 inventory levels and free cash flow • Given inventory build in Q2 2021 and second half 2021 anticipated shipment levels, expect
Slide 12: Specialty Products
12 Specialty Products © 2021 Chart Industries, Inc. Confidential and Proprietary 36.5% 34.4% Q1 FY21 Q2 FY21 35.0% 34.4% Q2 FY20 Q2 FY21 $77.3 $106.8 Q1 FY21 Q2 FY21 $48.6 $106.8 Q2 FY20 Q2 FY21 $144.5 $190.6 Q1 FY21 Q2 FY21 $64.4 $190.6 Q2 FY20 Q2 FY21 +196.0% +31.9% +119.8% +38.2% -60 bps -210 bps
Slide 13: Our Hydrogen Progress
© 2021 Chart Industries, Inc. Confidential and Proprietary 13 Our Hydrogen Progress Orders $ M Q1 2020 $4.2 Q2 2020 1.2 Q3 2020 9.2 Q4 2020 23.5 Q1 2021 71.2 Q2 2021 81.9 (1) TAM = Total Addressable Market for Chart existing process and equipment Current TAM GTLS TAM $2.65 Billion • 136 Fueling stat
Slide 14: Repair, Service & Leasing
14 Repair, Service & Leasing © 2021 Chart Industries, Inc. Confidential and Proprietary 35.5% 22.2% Q1 FY21 Q2 FY21 34.2% 22.2% Q2 FY20 Q2 FY21 $40.1 $54.6 Q2 FY20 Q2 FY21 $40.5 $41.4 Q1 FY21 Q2 FY21 $41.4 $41.4 Q2 FY20 Q2 FY21 +36.2% -1200 bps -1330 bps Orders Sales Gross Margin +2.2% $41.4 $54.6 Q
Slide 15: RSL Targeting 20%+ of Chart Revenue
RSL Targeting 20%+ of Chart Revenue Q2 2021 RSL was 17% of Chart’s Total Revenue 15© 2021 Chart Industries, Inc. Confidential and Proprietary Geographic Footprint European RSL Capabilities RSL LTAs with key customers Portfolio additions with higher % aftermarket Expanded Leasing Fleet Remote Monitor
Slide 16: Cryo Tank Solutions
16 Cryo Tank Solutions © 2021 Chart Industries, Inc. Confidential and Proprietary $129.5 $175.3 Q1 FY21 Q2 FY21 $85.5 $175.3 Q2 FY20 Q2 FY21 24.3% 23.7% Q1 FY21 Q2 FY21 24.5% 23.7% Q2 FY20 Q2 FY21 $103.9 $97.8 Q1 FY21 Q2 FY21 $105.3 $97.8 Q2 FY20 Q2 FY21 +105.0% -7.1% -5.9% -80 bps -60 bps Orders Sa
Slide 17: Products Within Cryo Tank Solutions are Leading Indicators
Products Within Cryo Tank Solutions are Leading Indicators © 2021 Chart Industries, Inc. Confidential and Proprietary 17 Record in Q2 2021 indicated by green check mark Broad Category Subcategory Orders Standard Tanks Jumbo Pressure Vessels Large Pressure Vessels Standard Tanks VTC/HTC Tanks Package
Slide 18: Heat Transfer Systems
18 Heat Transfer Systems 22.8% 17.2% Q1 FY21 Q2 FY21 27.5% 17.2% Q2 FY20 Q2 FY21 $69.2 $65.2 Q1 FY21 Q2 FY21 $97.3 $65.2 Q2 FY20 Q2 FY21 $104.9 $48.4 Q1 FY21 Q2 FY21 $55.4 $48.4 Q2 FY20 Q2 FY21 Gross Margin -12.6% -53.9% -1030 bps -560 bps Orders -33.0% -5.8% Sales 28.6% 25.9% Q2 FY20 Q2 FY21 24.9%
Slide 19: Do Not Forget About LNG
© 2021 Chart Industries, Inc. Confidential and Proprietary 19 Do Not Forget About LNG # Project Description Potential Content ($M) Status 1 Eagle Jacksonville 500 gpd liquefier $36 LOI in hand but order not yet booked 2 NEC 250 gpd liquefier $22 LOI in hand but order not yet booked 3 EU Client 10 TP
Slide 20: Second Quarter and YTD 2021 Earnings Per Share
© 2021 Chart Industries, Inc. Confidential and Proprietary 20 Second Quarter and YTD 2021 Earnings Per Share (1) On a diluted earnings per share basis: Restructuring costs of $0.02 and $0.01 in Q1 and Q2 2021 respectively; Acquisition and divestiture related costs of $0.03 and $0.05 in Q1 and Q2 202
Slide 21: 2021 & 2022 Outlooks
2021 & 2022 Outlooks 21
Slide 22: 2021 Full Year Sales Outlook (1H to 2H)
© 2021 Chart Industries, Inc. Confidential and Proprietary 22 2021 Full Year Sales Outlook (1H to 2H) to Low End (A) Acquisition impact = L.A. Turbine; Specific projects are not called out due to confidentiality purposes but do not include additional ssLNG projects that are not yet booked (B) Acquis
Slide 23: 2021 Revenue FY Outlook (Current vs. Prior)
© 2021 Chart Industries, Inc. Confidential and Proprietary 23 2021 Revenue FY Outlook (Current Vs. Prior to Low End of Guidance Range) As of Q1 2021 As of Q2 2021 Prior 2021 Full Year Sales Outlook 2021 FY Estimate Change Heat Transfer Systems 380 304 (76) Heat exchangers/cold boxes/systems 206 168
Slide 24: Full Year 2021 Guidance (Continuing Operations)
Full Year 2021 Guidance (Continuing Operations) 24© 2021 Chart Industries, Inc. Confidential and Proprietary Prior Guidance Current Guidance Revenue $1.36 to $1.41B Includes $21M of Calcasieu Pass Includes $30M from CT Non-Diluted Adjusted EPS $3.65 to $4.15 Assumes 18% ETR & 35.5M shares outstandin
Slide 25: Strong Backlog Already Sets 2022 Up Well
© 2021 Chart Industries, Inc. Confidential and Proprietary 25 Strong Backlog Already Sets 2022 Up Well # Segment Total Backlog 2H 2021 in Backlog 2022 + in Backlog Not in Backlog But With High Probability Comment 1 Total GTLS 1,083.9 624.0 459.9 2 Potential timing shifts from backlog to 2023 0 – (10
Slide 26: And Finally…Another Step in our ESG Journey
And Finally…Another Step in our ESG Journey © 2021 Chart Industries, Inc. Confidential and Proprietary 26
Slide 27: Appendix
Appendix 27
Slide 28: Second Quarter and YTD 2021 Free Cash Flow
© 2021 Chart Industries, Inc. Confidential and Proprietary 28 Second Quarter and YTD 2021 Free Cash Flow (1) “Net income, 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 to N
Slide 29: Prior 2020 Actual Sales to 2021 Sales (to Low End of Range)
Prior 2020 Actual Sales to 2021 Sales (to Low End of Range) 29 (A) VG Calcasieu Pass ~$98 million in 2020, $21 million in 2021 full year outlook (B) Includes FastLNG 2021 revenue portion and 2021 petrochemical project currently in backlog as well as one additional small-scale LNG project expected to
Slide 30: Our Specialty Markets Near-Term Addressable Market Size
Our Specialty Markets Near-Term Addressable Market Size ($6.6B) 700M 750M 2,650M Space Cryogenic liquid propellants are used as fuel for rocket propulsion Drivers of Size Opportunity Proliferation of private space travel industry Industrial Lasers High purity liquid nitrogen (gas assist) provi
Slide 31: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation © 2021 Chart Industries, Inc. Confidential and Proprietary 31 $ millions Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Corporate Consolidated Sales $97.8 $65.2 $106.8 $54.6 ($2.4) - $322.0 Gross P