Slide 1: Fourth Quarter and Full Year 2022 Earnings Call
N Y S E : G T L S 1 Jill Evanko Chief Executive Officer Presented by Joe Brinkman Chief Financial Officer Fourth Quarter and Full Year 2022 Earnings Call Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements © 2022 Chart Industries, Inc. Confidential and Proprietary 2 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
Slide 3: 2023 Outlook
2023 Outlook 3
Slide 4: Reiterating Chart's Full Year 2023 Standalone Outlook
4 Reiterating Chart’s Full Year 2023 Standalone Outlook Revenue $2.10 billion to $2.20 billion Adjusted EBITDA $440 million to $480 million Cap Expenditures ~$60 million to $65 million Adj. Free Cash Flow $250 million to $300 million # Description $ millions 1 2023 Shippable Backlog as of 12/31/2022
Slide 5: 2023 Chart Standalone Segment Outlook
2023 Chart Standalone Segment Outlook © 2022 Chart Industries, Inc. Confidential and Proprietary 5 Primary End Markets GTLS projected organic growth rate Comments Heat Transfer Systems Liquefied Natural Gas Oil and Gas 50%+ • Record backlog • 2022 order strength in ssLNG, Big LNG • Traditional energ
Slide 6: 2023 Demand Outlook is Strong and Supported by Numerous Macro Tailwinds
2023 Demand Outlook is Strong and Supported by Numerous Macro Tailwinds 6 Our current commercial pipeline for the next 12 months totals over $11.5 billion Booked $285 million of orders in January 2023 • Specific solution opportunities of $8.2 billion • Over $100 million of liquid hydrogen trailer op
Slide 7: Meaningful Year-to-Date 2023 Orders
Meaningful Year-to-Date 2023 Orders YTD Through February 22, 2023 © 2022 Chart Industries, Inc. Confidential and Proprietary 7 LNG / OIL • LNG systems with APAC EPC $115M • Floating LNG BAHX $19.5M • USA ACHX for LNG $4.9M • Cryo plant BAHX $1.9M • UAE ACHX $0.9M WATER TREATMENT • PA wellsite water
Slide 8: Pro Forma Combined Chart and Howden 2023 Outlook Levered Adj Free Cash Flow Bridge
8 Pro Forma Combined Chart and Howden 2023 Outlook Levered Adj Free Cash Flow Bridge $M Approx. pro forma EBITDA, pre-commercial ~$1,000 Less: Interest Expense ~315 Less: Cash tax, working capital, capex ~250 Less: Costs to achieve synergies ~16 Levered pro forma adj. FCF ~$420 1. Pro forma Chart an
Slide 9: Pro Forma Adjusted EBITDA Bridge 2023 to 2024 Combined Chart + Howden
Pro Forma Adjusted EBITDA Bridge 2023 to 2024 Combined Chart + Howden 9 Reiterating our 2024 Combined EBITDA Forecast • Revenue growth led by energy transition markets and backlog conversion • Implied organic volume leverage of ~30% • Favorable mix driven by energy transition verticals • Cost synerg
Slide 10: Macro Tailwinds Continue to Build
Macro Tailwinds Continue to Build 10
Slide 11: Global Investment - Energy Transition
11 Global Investment - Energy Transition GTLS: GAS TO LIQUID SYSTEMS® Latest update includes US Inflation Reduction Act (IRA) and European national funding; Recent EU Green Deal Industrial Plan (GDIP) is incremental to November 2022 update 76 64 20 108 109 22 Announced Planning Stage Committed 2021
Slide 12: Recent Hydrogen News = Positive News for GTLS & Howden
Recent Hydrogen News = Positive News for GTLS & Howden Canada • Introducing new tax credit of up to 40% for hydrogen production (2023-2030) • Federal government will distribute $800 million to 60 Canadian clean fuels companies United States • Biden Administration announced $750M to accelerate clean
Slide 13: Potential for Chart or Howden Content: US DOE Hub Applications Status
* *** Potential for Chart or Howden Content * * ** * * * Source: CHF 1.9.23 * * * * * * * * * * US DOE Hub Applications Status * * * * *Chart’s acquisition of Howden is currently pending regulatory approvals before closing 13© 2022 Chart Industries, Inc. Confidential and Proprietary
Slide 14: Recent Water News = Positive News for GTLS & Howden
Recent Water News = Positive News for GTLS & Howden Positive Impact to Chart • New groundwater projects will require treatment of contaminants (high volume of current proposals) • Ozone is only proven way to remove specific bacteria in surface water reservoirs; Our LOX systems will likely be require
Slide 15: Recent GHG/CCUS News = Positive News for GTLS & Howden
Recent GHG/CCUS News = Positive News for GTLS & Howden Positive Impact to Howden • Compression plays across the CCUS value chain • Leverage to CO2 capture, separation, transport, storage, and end usage • Tailored solutions for different types of CCUS applications (direct air capture, etc.) • Ability
Slide 16: Recent Marine News = Positive News for GTLS & Howden
Recent Marine News = Positive News for GTLS & Howden Positive Impact to Chart • Operators are looking for upfront engineering optimization and complete solution package which Chart and Howden bring plus over 1500 technical engineering resources • Air coolers are critical elements of e-methanol • Cha
Slide 17: Operating Environment
Operating Environment 17
Slide 18: Industry Input Costs
18 Industry Input Costs Sources: LME (Aluminum), MEPS (Carbon and Stainless Steel), Freightos © 2022 Chart Industries, Inc. Confidential and Proprietary
Slide 19: Year-Over-Year Material Cost Change
Year-Over-Year Material Cost Change Three Main Raw Material Inputs 19 (48%)Carbon Steel (8%)Stainless Steel (21%)Aluminum Cost Change from 1/31/2022 to 1/31/2023 2022 • Increase in demand in construction and infrastructure led to an increase in prices of steel and aluminum • Shortage of key raw mate
Slide 20: Chart Pricing
Chart Pricing © 2022 Chart Industries, Inc. Confidential and Proprietary 20 • Americas & Global • 8 base price increases + surcharges • EMEA • 4 base price increases + surcharges Standard Product Pricing Long-term agreement pricing mechanisms in contracts Project based specific material pricing GTLS
Slide 21: Q4 and Full Year 2022 Results, Continuing Operations
Q4 and Full Year 2022 Results, Continuing Operations 21
Slide 22: Q4 and Full Year 2022 Record Reported Results
22 Q4 and Full Year 2022 Record Reported Results 1) Adjusted operating income, adjusted operating margin, EBITDA and adjusted EBITDA are non-GAAP measures. Please see reconciliation tables at the end of the accompanying earnings release for a reconciliation to the relevant GAAP measures. 165.7 249.1
Slide 23: Q4 and Full Year 2022 Historical GTLS Records by Segment
© 2022 Chart Industries, Inc. Confidential and Proprietary 23 Q4 and Full Year 2022 Historical GTLS Records by Segment • Heat Transfer Systems Record orders of $1.42B Record sales of $462.7MM Record backlog of $1.3B Record operating income of $51.7M Record operating margin of 11.2% • Repai
Slide 24: Quarters Orders Trends
© 2022 Chart Industries, Inc. Confidential and Proprietary 24 12 Quarters Orders Trends $ millions Full year 2022 had our four highest order quarters in our history 285.8 244.5 262.7 417.0 417.2 447.9 350.2 460.9 636.8 887.8 729.4 525.9 - 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0 Q1'20 Q
Slide 25: Continued Strength in Base Business Orders
$millions 2022 2021 % change Chart total orders $2,779.9 $1,676.1 65.9% Big LNG 620.7 2.9 Chart orders ex Big LNG 2,159.2 1,673.2 29.0% Over-the-Road (OTR) Vehicle tanks 16.6 111.7 Chart orders ex Big LNG and OTR Tanks 2,142.6 1,561.5 37.2% Continued Strength in Base Business Orders © 2022 Chart Ind
Slide 26: Record Full Year 2022 Orders
© 2022 Chart Industries, Inc. Confidential and Proprietary 26 Record Full Year 2022 Orders # Orders Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 1 Venture Global (BKR) Plaquemines Phase 1 FNTP 135.5 135.5 2 Venture Global (BKR) Plaquemines Phase 2 FNTP 45.4 91.8 137.2 3 Cheniere (Bechtel) CCL Stage 3 LNT
Slide 27: Record Q4 and Full Year 2022 Sales
Record Q4 and Full Year 2022 Sales 27 % change FY 2022 vs. 2021 Q4 ‘22 vs. Q4 ‘21 Reported sales 22.4% 16.5% Organic 21.4% 20.5% Inorganic 4.8% 0.2% FX (Currency) (3.9%) (4.2%) $millions 2022 2021 % change Chart total sales $1,612 $1,318 22.3% OTR Vehicle tanks 27 131 (79.4%) Chart sales ex OTR $1,5
Slide 28: Sales & Operating Margin Trends
28 Sales & Operating Margin Trends • Q4 2022 reported operating income is a historical record • Q4 2022 reported operating income as a percent of sales is a historical record 1) Adjusted operating margin is a non-GAAP measure. Please see reconciliation table at the end of the accompanying earnings r
Slide 29: Fourth Quarter and Full Year 2022 Adjusted EBITDA
© 2022 Chart Industries, Inc. Confidential and Proprietary 29 Fourth Quarter and Full Year 2022 Adjusted EBITDA $ millions, except per share amounts Consolidated Q4 2022 Q4 2021 Change v. PY YTD 2022 YTD 2021 Change v. PY Net income from continuing operations $17.4 $12.4 $5.0 $82.6 $60.9 $21.7 Incom
Slide 30: Fourth Quarter and Full Year 2022 Adjusted EPS
Fourth Quarter and Full Year 2022 Adjusted EPS © 2022 Chart Industries, Inc. Confidential and Proprietary 30 $ millions, except per share amounts Q4 2022 Q4 2022 at normalized share count 3 Q4 2021 Change v Q421 YTD 2022 YTD 2022 at normalized share count 3 YTD 2021 Change v. PYContinuing Operations
Slide 31: Fourth Quarter and Full Year 2021 to 2022 Adjusted EPS Walk
Fourth Quarter and Full Year 2021 to 2022 Adjusted EPS Walk © 2022 Chart Industries, Inc. Confidential and Proprietary 31 Adjusted Basic EPS Bridge Q4 2021 to Q4 2022 Adjusted Basic EPS Bridge FY2021 to FY2022 Q4 21 Adjusted Basic EPS Op Inc & Other FX Interest Tax Q4 22 Adjusted Basic EPS FY21 Adju
Slide 32: Q3 2022 to Q4 2022 Adjusted EPS Walk
Q3 2022 to Q4 2022 Adjusted EPS Walk © 2022 Chart Industries, Inc. Confidential and Proprietary 32 Adjusted Basic EPS and Normalized Basic EPS (both non-GAAP measures) are as reported on a historical basis. EPS adjustment reconciliation table is provided in accompanying press release financial table
Slide 33: Fourth Quarter 2022 Free Cash Flow
Fourth Quarter 2022 Free Cash Flow 33 $ millions, consolidated, continuing ops Q4 2022 Act Adjustments Q4 ‘22 Adj. Net Income 17.4 17.4 Operating income adjustments 15.0 15.0 Tax affect on operating income adjustments (2.1) (2.1) Non operating income adjustments 4.6 4.6 Tax affect on non operating i
Slide 34: Q4 and FY 2022 Segment Information
Q4 and FY 2022 Segment Information 34
Slide 35: Heat Transfer Systems: LNG Opportunities for GTLS
Heat Transfer Systems: LNG Opportunities for GTLS Pre Feb 24, 2022 GTLS April 29, 2022 GTLS July 29, 2022 GTLS October 28, 2022 GTLS February 24, 2023 GTLS BigLNG (greater than 5 MTPA) 1 • Number of reasonably possible projects to move to order stage in next 3 years 10 22 24 (excludes what is in bac
Slide 36: Chart Executed 30 Individual MOUs in 2022
1) BNG Clean Fuel was signed in December 2022, publicly announced Jan 2023 Chart Executed 30 Individual MOUs in 2022 © 02 Chart Industries, Inc. Confidential and Proprietary 36 Category Q4 2022 Full Year 2022 YTD 2/23/2023 CCUS / CO2 1 8 Hydrogen (including liquefaction) 5 12 2 Water treatment 1 1 1
Slide 37: Chart Q4 and Full Year 2022 First-of-a-Kind Orders
Chart Q4 and Full Year 2022 First-of-a-Kind Orders Water Treatment Guyana Water Incorporated (GW) award for two projects to support water infrastructure initiative in Guyana Hydrogen Hyzon Motors with an order for liquid hydrogen onboard tank AdEdge water treatment technology and associated GTLS equ
Slide 38: Chart Q4 and Full Year 2022 New Customers
Chart Q4 and Full Year 2022 New Customers 38 Water Treatment Yarmouth, Massachusetts Fe/Mn PFAS Treatment system – first Flourosorb system in MA Hydrogen Hydrogen equipment solutions for Energy Vault’s Calistoga Project in California AdEdge water treatment technology and associated GTLS equipment SE
Slide 39: Cryo Tank Solutions: Chart China Setting Records
Cryo Tank Solutions: Chart China Setting Records © 2022 Chart Industries, Inc. Confidential and Proprietary 39 2021 Records 2023 China Economic Outlook • Full year 2021 orders • Full year 2021 sales • Full year operating income • Full year operating income % of sales • Q4 2021 gross margin as a perc
Slide 40: Repair, Service, Leasing: Leasing Continues to Grow
Repair, Service, Leasing: Leasing Continues to Grow © 2022 Chart Industries, Inc. Confidential and Proprietary 40 Three- year Master Service Agreement (MSA) signed with VERBIO for LNG Vehicle Fueling Stations • Periodic Maintenance Monheim, Germany • 24/7 Helpdesk Service Monheim, Germany (dayti
Slide 41: Announced Definitive Agreement to Acquire Howden
Announced Definitive Agreement to Acquire Howden 41*Chart’s acquisition of Howden is currently pending regulatory approvals before closing
Slide 42: Combined Solutions Across the Nexus of Clean
Combined Solutions Across the Nexus of Clean™ Valves / Vaporizers Expanders Liquefiers Cold Boxes BAHX ACHX Bulk & Microbulk Fans Transports Hydrogen Helium LNG Biogas Nuclear Energy recovery Biofuel / synfuels Biomass Fans Compressors Blowers Heaters Stea
Slide 43: One Chart Global Commercial Team
43 Cryo Tank So lu t ionsHeat Transfer Sys tems One Chart Global Commercial Team Repa ir, Service & Leas ing Chart New Build Products • Air Cooled Heat Exchangers (ACHX) • Brazed Aluminum Heat Exchangers • Cold Boxes • Nitrogen Rejection Units (NRU) • Integrated systems • High Efficiency Flow Fans C
Slide 44: Complementary Exposure to Specialty Markets
Complementary Exposure to Specialty Markets 44 Market What is in this category Approximate % of revenue Growth Drivers Chart Howden Combined Mkt growth ahead Aftermarket, repair, service • Field service • Remote monitoring • Spare parts 13% 48% 31% +20% Penetration of existing installed base Dig
Slide 45: Combined Total Addressable Market
45 $ billions Chart TAM as of 02/24/2023 Howden TAM Estimate Combined TAM End-use of Products Near-term TAM(1) 2030 TAM CAGR(2) Near-term TAM(1) 2030 TAM CAGR (2) Near-term TAM(1) 2030 TAM CAGR(2) • Hydrogen • Biofuels & Synfuels • Nuclear • Energy recovery $4.50 26.8% $6.40 28.5% $10.90 27.8% • CCU
Slide 46: Q4 2022 & Q1 2023 Howden Example Wins in the Nexus of Clean
Q4 2022 & Q1 2023 Howden Example Wins in the Nexus of Clean™ 46 Hydrogen Hydrogen Diaphragm compressors Howden Offering Being Used in the Respective Application Howden supplying hydrogen compression solution for Shell’s Holland Hydrogen 1 facility in Rotterdam, which, when complete will be Europe’s’
Slide 47: Howden Executed Two New MOUs 2023 Year-To-Date
• Howden and Hydrexia have signed a cooperation agreement focused on mobility applications, specifically hydrogen refuelling stations, and will combine their expertise to deliver complete refuelling stations solutions with a modularisation concept bringing cost and lead- time efficiencies for custom
Slide 48: Howden & Chart Cost and Commercial Synergies
© 2022 Chart Industries, Inc. Confidential and Proprietary Howden & Chart Cost and Commercial Synergies • Additional cost synergy opportunities identified • Footprint consolidation –numerous additional offices and other sites resulting in identified $25M+ in potential synergies, exceeding our initia
Slide 49: Recognizing our One Chart Team and ESG Progress
Recognizing our One Chart Team and ESG Progress 49
Slide 50: Safety, Certifications and On-Time Delivery Focus
Safety, Certifications and On-Time Delivery Focus 50 • Lowest 12 month rolling total recordable incident rate (TRIR) achieved • 28 sites with no accidents in 2022 (76% of our sites) • 35% reduction in 12/31/2022 TRIR compared to 12/31/2021 SAFETY Goal of Zero Accidents CERTIFICATIONS IN Q4 2022 Diff
Slide 51: Congratulations to the winners of our Chart Global Innovation Contest
Congratulations to the winners of our Chart Global Innovation Contest Andrea Liuzzi • This year, we asked our global team members to submit their innovative ideas as part of a company-wide competition. We received hundreds of submissions from team members across the global organization. We narrowed
Slide 52: Congratulations!
Congratulations! • On January 15, 2023, Howden won the 2022 “Visionary Business & Technology Disruptor in Energy” award at the World Clean Tech Awards in Dubai, UAE. • The World Clean Tech Awards recognize individuals and companies advocating the clean tech transformation mission. • On February 9, 2
Slide 53: Chart ESG Scorecard 2022
Chart ESG Scorecard 2022 53© 2022 Chart Industries, Inc. Confidential and Proprietary Environmental Governance Social Targets In 2022, Chart Products… Completed/Ongoing Company Efforts Global D&I Committee Safety is our #1 Priority Engineering Fellows & Key Experts, Rotational Engineering Program, I
Slide 54: Howden ESG Scorecard 2022
Howden ESG Scorecard 2022 54© 2022 Chart Industries, Inc. Confidential and Proprietary Environmental Governance Social Targets Helping Customers Achieve ESG targets… Targets Global Wellbeing Week Bright Futures Program Stay Secure Howden Ethics Point HotlineCompliance Week Reduce Scope 1 and 2 car
Slide 55: Our Emissions Reductions Targets, Reiterated
© 2022 Chart Industries, Inc. Confidential and Proprietary 55 Our Emissions Reductions Targets, Reiterated Committed to reducing our carbon intensity 30% by 2030 compared to our 2020 baseline as well as pledging carbon-neutrality by 2050 [targets are inclusive of pending Howden acquisition] *Chart’s
Slide 56: Appendix
Appendix 56
Slide 57: Q4 Addback Detail (1/2)
Q4 Addback Detail (1/2) © 2022 Chart Industries, Inc. Confidential and Proprietary 57 Main category Detailed Description Q4 gross amount (+ added to / (-) reduced reported income) Impact to operating income Addback will exist in 2023? 1 Mark-to-Market of inorganic investments • McPhy MTM • Stabilis
Slide 58: Q4 Addback Detail (2/2)
Q4 Addback Detail (2/2) © 2022 Chart Industries, Inc. Confidential and Proprietary 58 Main category Detailed Description Q4 gross amount (+ added to / (-) reduced reported income) Impact to operating income Addback will exist in 2023? 7 Restructuring • Specific to org structure changes, movement of
Slide 59: Amended Bank Covenants
59 Amended Bank Covenants Debt Covenant: Net Debt/ LTM Adjusted EBITDA 2023 2024 2025 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Prior 4.00X 4.00X 4.00X 4.00X 4.00X 4.00X 4.00X 4.00X Amended 6.00X 6.00X 6.00X 6.00X 5.00X 5.00X 4.50X 4.50X (1) Adjusted EBITDA is defined by Credit Agreement 2023 2024 2025 2026 2027 2028
Slide 60: Capital Allocation Policy
Capital Allocation Policy Deleverage Organic Growth Reiterate our financial policy that until we are within our target net leverage ratio range of 2-2.5, we will: Not do any additional material cash acquisitions Not do share repurchases Additional cash generation opportunities Two divestit
Slide 61: Fourth Quarter 2022 Adjustments
Fourth Quarter 2022 Adjustments $ millions, except per share amounts Q4 2022, Reported Adjustments Q4 2022, Adjusted Continuing Operations Sales $441.4 - $441.4 Cost of sales 317.1 (7.8) 309.3 Gross profit 124.3 7.8 132.1 Selling, general, and administrative expenses 55.2 (7.7) 47.5 Amortization exp