Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Corporate Update (October 2018)
17 slides from Chart Industries's corporate update, Oct 2, 2018
Slide 1: Chart Industries Strategic Update
Chart Industries Strategic Update October 2, 2018 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 Chart Industries’ plans, objectives, future orders, revenues, ma
Slide 3: Changes to Support Our Strategy
Changes to Support Our Strategy Segmentation with Global Commercial Team Sale of Oxygen-Related Products Business Acquisition of VRV, s.p.a 1 2 3 Predictable, Disciplined and Profitable Growth Take Advantage of Favorable Market Trends Deliver Profitable Growth Through Strategic Initiatives Achieve F
Slide 4: Segmentation
Segmentation Energy & Chemicals Distribution & Storage Western Hemisphere Distribution & Storage Eastern Hemisphere Chart revenue ~ $380M + VRV E&C ~ 60M Total E&C ~ $440M Chart revenue ~ $370M + CryoBio ~ 80M Total D&S West ~ $450M Chart revenue ~ $240M + VRV D&S ~ 60M Total D&S East ~ $300M 1 Glob
Slide 5: Divestiture of Oxygen-Related Products
Divestiture of Oxygen-Related Products 2 Respiratory BioMedical Revenue: $77M Revenue: $146M CryoBio Note: Revenue from 2017 CAIRE Description Leading global engineered solutions company specializing in oxygen related products across the respiratory industry Stationary Portable Military Transaction
Slide 6: Energy & Petrochemicals VRV s.p.a.
Energy & Petrochemicals VRV s.p.a. manufactures medium / high pressure and cryogenic equipment for the chemical, petrochemical and power industries Founded: 1956 Headquarters: Ornago, Italy Operates in two divisions: Energy & Petrochemical Division: product categories include refining, petrochemical
Slide 7: VRV Strategic Rationale
VRV Strategic Rationale 3 ü+ Expand Chart’s Global Footprint Maximize Production Capabilities and Efficiency ü+ Innovation Through Technology ü+ Pursue New Organic and Inorganic Growth Opportunities ü+ Adds D&S Indian, Italian and France manufacturing Adds E&C manufacturing in Europe Additional port
Slide 8: Transaction Summary: VRV, s.p.a
Transaction Summary: VRV, s.p.a 3 Transaction Consideration €125M purchase price plus existing debt at time of signing (~€ 70M) Subject to working capital adjustment and debt adjustment at close Closing Expected closing in Q4 2018 Expected Financial Impact EPS accretive in first calendar year of own
Slide 9: How Do The Changes Support Our Strategy
How Do The Changes Support Our Strategy Segmentation with Global Commercial Team Sale of Oxygen-Related Products Business Acquisition of VRV, s.p.a 1 2 3 Take Advantage of Favorable Market Trends Deliver Profitable Growth Through Strategic Initiatives Achieve Financial Targets Building Blocks of Our
Slide 10: Take Advantage of Favorable Macro Trends
Take Advantage of Favorable Macro Trends Market Dynamics Chart Exploitation Supply / demand for LNG needs in 2022-2023 and shift toward modular facilities Increasing regulatory environment Pollution and keen environmental awareness, in particular in emerging geographies Demand for industrial gases c
Slide 11: Accelerate Growth through Acquisitions
Accelerate Growth through Acquisitions Acquisition Criteria: Strong level of strategic fit High degree of leveragability (specific and attainable synergies) Proven growth and profitability Reasonable price expectations Management bench strength Ownership that’s willing to assist in the transition Pr
Slide 12: Previous Gas to Liquids Offerings
Previous Gas to Liquids Offerings Exploration, Production & Pipeline Processing/ Liquefaction Treatment Transportation Storage Lifecycle Services Value Proposition/ Application Re- gasification Industrial Gas Energy Engineered Tanks Engineered Tanks VJ Pipe Engineered Tanks VJ Pipe Trailers Shop Rep
Slide 13: Current Focused Gas to Liquids Offerings
Current Focused Gas to Liquids Offerings Exploration, Production & Pipeline Processing/ Liquefaction Treatment Transportation Storage Lifecycle Services Value Proposition/ Application Re- gasification Industrial Gas Energy Engineered Tanks Engineered Tanks VJ Pipe Engineered Tanks VJ Pipe Trailers S
Slide 14: Forward Looking Financials
Forward Looking Financials VRV outlook represents annualized run rate exiting 2019, inclusive of synergy costs and benefits. EBITDA is not recognized under generally accepted accounting principles (“GAAP”) and is referred to as a “non-GAAP financial measure” in Regulation G under the Exchange Act. T
Slide 15: Capital Allocation Strategy
Capital Allocation Strategy Focused on long-term shareholder value creation Organic growth initiatives M&A Deleverage Direct shareholder return (when/if appropriate) Expect $250M Free Cash Flow1 over the next 3 years Long-term leverage target of 2x – 3x Capital allocated to position the company for
Slide 16: Strategic Realignment Supports Achieving 2021 Financial Targets
Strategic Realignment Supports Achieving 2021 Financial Targets Predictable, Disciplined and Profitable Growth 40+% Revenue Growth to $1.7B ~700bps Operating Margin Expansion to ~17% 21% of Sales from Aftermarket from 13% Leading Positions Across the Portfolio Well-Balanced Portfolio of Long-Cycle a
Slide 17: VRV and Chart Advisors
VRV and Chart Advisors VRV Transaction: Credit Suisse served as exclusive financial advisor and Winston & Strawn LLP and NCTM served as legal advisors to Chart, while Shearman & Sterling LLP served VRV as legal advisors. CAIRE Transaction: Credit Suisse served as exclusive financial advisor and Wins