Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Q2 2019 Earnings Presentation
17 slides from Chart Industries's earnings presentation, Jul 18, 2019
Slide 1: Chart Industries Second Quarter 2019
Exhibit 99.2 Chart Industries Second Quarter 2019 July 18, 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: Chart is Benefitting From Industry Tailwinds
Light blue = 51.163.221 Chart is Benefitting From Industry Tailwinds Drivers of Results Correlation to Chart Q2 / FY • Big LNG activity is ramping • Small-scale and utility scale LNG targets Market Demand for LNG different customers ✓ • Repair, service and aftermarket capabilities • Developing econo
Slide 4: Q2 2019 Sales & Orders
Q2 2019 Sales & Orders All results reflect continuing operations E&C D&S East D&S West Sales +19% +25% (-2%) $120 $78 $118 $116 $101 $62 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Orders +4% +18% (9%) $127 $79 $123 $67 $127 $116 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 • Big LNG • Indust
Slide 5: Small and Utility-Scale LNG
Small and Utility-Scale LNG ssLNG opportunities exist globally, and Chart’s global footprint, enhanced by VRV, is well positioned to capitalize. United States Europe / Russia EAST COAST ◼ Utility / peak gas capacity China ◼ Marine fuel or bunkering WEST COAST ◼ Road transport ◼ Utility ◼ Refueling i
Slide 6: Big LNG Order Opportunities
Big LNG Order Opportunities Number Project Chart Customer Operator Size Chart Content Expected Timing of Chart orders 1 - Calcasieu Pass BHGE Venture Global 10 MTPA 18 cold boxes, BAHX Q1 2019 BOOKED 2 – Gimi (Tortue) Black & Veatch Golar 3.75 MTPA 4x Cold boxes, BAHX 1H 2019 BOOKED 3 Driftwood Bech
Slide 7: Global LNG Opportunities
Global LNG Opportunities ** International liquefaction projects* Global receiving terminals locations Chart Content Project Name State / Country Capacity (mtpa) Potential Qatar LNG Qatar 31.2 ✓ Kw ispaa LNG BC, Canada 24.0 ✓ Artic 2 Russia 19.8 ✓ Mozambique Rovuma Mozambique 15.2 ✓ Mozambique LNG Mo
Slide 8: Specialty Market Updates
Specialty Market Updates NextGen Fueling System Food & Beverage Space Exploration • Integrated fueling system patents • Five 15,000 gallon nitrogen • In conjunction with India Space (2017 U.S.; 2019 EU) Chillzilla’s, a 6 ton LCO2, VJ Pipe Research Organization, delivered the region’s largest hydroge
Slide 9: Q2 2019 Adjusted Gross Margin
Q2 2019 Adjusted Gross Margin1 All results reflect continuing operations Sequential E&C D&S East D&S West 24.4% 21.5% 36.8% 20.2% 34.1% 22.0% Q1 2019 Q2 2019 Q1 2019 Q2 2019 Q1 2019 Q2 2019 As Reported: 18.3% 25.4% 13.0% 14.3% 33.9% 36.8% vs. Prior Year E&C D&S East D&S West 24.4% 23.1% 36.8% 21.5%
Slide 10: Q1 2019 Margin Expansion Actions
Q1 2019 Margin Expansion Actions ($M) Facility Headcount Price Product Line Projected Projected Reduction / Reduction / Increases and Rationalization Incremental OpInc Impact Consolidation Other Supply Chain (1) Annual to 2019 Versus (1) Savings Prior Guide E&C Announced Absorbed consolidation from
Slide 11: Q2 2019 Margin Expansion Actions
Q2 2019 Margin Expansion Actions ($M) Facility Headcount Price Product Line Projected Projected Reduction / Reduction / Increases and Rationalization Incremental OpInc Impact Consolidation Other Supply Chain Annual to 2019 Versus Savings Prior Guide E&C Consolidated Reduced duplicate backoffice in L
Slide 12: Leveraging Our Global Operations
Leveraging Our Global Operations Europe Asia-Pacific Benefits: ◼ Ferox – Decin, CR ◼ Changzhou, China • 27 out of 44 D&S product ◼ VRV – Italy ◼ GOFA –Germany ◼ IMB – Italy ◼ Chengdu, China (CryoBio) lines have reduced lead E&C ◼ Flow – Germany ◼ VRV – India times since beginning of ◼ Hudson/Cofimco
Slide 13: 2019 Guidance
2019 Guidance Ref # Description Revenue ($M) Adjusted EPS 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 Q1 2019 incremental restructuring benefit
Slide 14: Q2 Adjusted EPS
Q2 Adjusted EPS $ millions, except per share amounts Continuing Operations Q2 2019 Q2 2018 Change v. PY 1H 2019 1H 2018 Change v. PY Income $14.4 $9.9 $4.5 $15.3 $14.1 $1.2 from continuing operations Reported EPS $0.41 $0.31 $0.10 $0.45 $0.44 $0.01 Restructuring and transaction- 1 0.23 0.07 0.16 0.4
Slide 15: 2019 Guidance
2019 Guidance FY 2018 Results Prior FY 2019 Guidance Full Year 2019 Sales Sales Sales $1.41B - $1.46B $1.41B - $1.46B $1.08B Inclusive of 2019 portion of Inclusive of 2019 portion of 28.6% growth Calcasieu Pass and Golar Gimi Calcasieu Pass and Golar Gimi 13.4% organic growth And 2H 19 AXC And 2H 19
Slide 16: Appendix
Appendix © 2019 Chart Industries, Inc. Confidential and Proprietary © 2019 Chart Industries, Inc. Confidential and Proprietary
Slide 17: Adjusted Gross Margin Detail
Adjusted Gross Margin Detail Q2 2018 Q1 2019 Q2 2019 Energy & Chemicals Gross Profit, As Reported 21.3 21.1% 19.3 18.3% 30.5 25.4% Consolidation of facilities - - 3.1 2.9% (1.4) -1.2% VRV Integration and Step Up costs - - 0.8 0.8% 0.2 0.2% Adjusted Gross Profit1 21.3 21.1% 23.2 22.0% 29.3 24.4% D&S