Slide 1: Investment Highlights April 2008
Investment Highlights April 2008 Sam Thomas Chairman, Chief Executive Officer and President Michael Biehl Executive Vice President, Chief Financial Officer and Treasurer
Slide 2: Disclosure
Disclosure This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "may", "might", "should", "will", "expect", "plan", "anticipate", "believe", "estimate", "project", "intend", "future", "potential"
Slide 3: Section 1: Company Overview
SECTION 1 Company Overview
Slide 4: Company Overview
U.S. Europe Asia Americas (Non-U.S.) RoW % Revenue 0.42 0.21 0.22 0.07 0.08 General Industrial Energy BioMedical % Revenue 0.27 0.59 0.14 Energy industry is the largest end-user of the Company's products #1 or #2 in all primary markets served Global operations with 12 manufacturing facilities and ov
Slide 5: E&C Segment Overview
VIP for LNG and Vacuum Systems Heat Exchangers Cold Boxes % Revenue 9 61 30 Heat Exchanger Cold Box Production Heat Exchangers 61% LNG VIP and Vacuum Systems 9% Process Systems / Cold Boxes 30% 2007 Sales by Product Highlights Leading provider of heat exchangers and cold boxes critical to LNG, IGCC
Slide 6: D&S Segment Overview
Bulk Storage Systems Packaged Gas Systems VIP, Systems and Components Parts Repair and Onsite Service Beverage Liquid CO2 LNG Vehicle Fuel Systems % Revenue 0.48 0.3 0.04 0.07 0.07 0.04 2007 Sales by Product Highlights 44% of segment sales derived from products used in energy applications; 53% of se
Slide 7: BioMedical Segment Overview
BioMedical Segment Overview 2007 Sales by Product Highlights Strong expected growth in respiratory therapy and biomedical research, led by international markets End markets include: Home healthcare and nursing home Hospitals and long-term care Biomedical and pharmaceutical research Animal breeding R
Slide 8: Section: Chart Investment Highlights
SECTION 2 Chart Investment Highlights
Slide 9: Summary Investment Highlights
Summary Investment Highlights Strong and growing end markets Infrastructure spend of $250 billion expected over next 30 years LNG liquefaction capacity expected to grow 15% annually Well positioned in areas of strong economic growth A market leader Leading market position in all segments Significant
Slide 10: Positive Energy Market Fundamentals
Positive Energy Market Fundamentals Sources: "LNG World Energy Outlook" May 19-20, 2005 International Energy Agency Presentation; BP Statistical Review; Energy Information Administration Chart is well-positioned to capitalize on the strong demand for energy and the increasing use of natural gas and
Slide 11: Positive Energy Market Fundamentals (continued)
Positive Energy Market Fundamentals (continued) Sources: Wood Mackenzie Chart is well-positioned to capitalize on strong global demand for energy applications Monetization of small to mid-scale natural gas reserves gaining market interest, which address Capex and project delay concerns of large base
Slide 12: Strong Industrial Gas Market
On-Site Gas Bulk Storage Systems Packaged Systems Market Size 26 25 49 On-Site/Pipeline 29% On-Site Gas Bulk Storage Systems Packaged Systems Market Size 22 27 51 Strong Industrial Gas Market Industrial Gas Growth is Expected to be Robust, Significantly Exceeding GDP Growth Source: Spiritus Consulti
Slide 13: Leading Proprietary Technology and Designs
Satellite LNG Storage Leading Proprietary Technology and Designs Take advantage of leading proprietary technology and designs through new product development Extend competitive advantage in use of proprietary vacuum insulation manufacturing technology Brazed Aluminum Heat Exchangers Microbulk Air Co
Slide 14: Global Manufacturing and Distribution Platform
Operating leverage allows substantial capacity expansion with minimal capex Global Manufacturing and Distribution Platform Manufacturing facilities are strategically located in low-cost countries and near centers of demand Corporate Energy & Chemicals Distribution & Storage BioMedical Total: Manufac
Slide 15: Section: Financial Overview
SECTION 3 Financial Overview
Slide 16: Strong Sales Growth Combined With...
Strong Sales Growth Combined With... BioMedical D&S E&C Total 2003 66.6 140.3 58.6 265.5 2004 73.3 162.6 69.6 305.6 2005 72.9 209.2 121.1 403.2 2006 78 268.303 190.673 537.45 2007 90.158 322.4 253.672 666.395 D&S E&C ($MM) CAGR = 26% Drivers of Growth Significant exposure to global energy demand gro
Slide 17: Strong Track Record of Successful Execution
Strong Track Record of Successful Execution... Experienced management has delivered strong performance since 2003 250 combined years of related experience Management team has stake in the ownership and continued success of the Company Impressive growth 26% Sales and 34% Adjusted EBITDA CAGRs since 2
Slide 18: Large Backlog Provides High Sales Visibility
Large Backlog Provides High Sales Visibility 2003 2004 2005 2006 2007 BioMed 1.8 4.6 6.4 6.415 9.483 D&S 28 53.8 79.5 105.07 107.011 E&C 19.8 70.8 147.7 207.668 358.784 Total 49.6 129.2 233.6 319.153 475.278 ($MM) D&S E&C BioMed
Slide 19: Strong Cash Flow and Rapid Delevering
12/31/2005 12/31/2006 12/31/2007 Net Debt 335.978 271.896 157.131 0 0 0 0 Leverage 4.8 3.05 1.38 116 219.734 327.991 (1) Leverage ratio defined as total debt less cash and equivalents divided by Adjusted EBITDA. Drivers of Growth ....Strong Cash Flow and Rapid Delevering Strong free cash flow genera
Slide 20: Section: Conclusion
SECTION 4 Conclusion
Slide 21: Why Chart is a solid investment opportunity
Why Chart is a solid investment opportunity Strong growth continues in the markets we participate in; LNG Coal to Chemicals and Clean-coal Power Generation Expanded Oil Sands and Enhanced Oil Recovery The Market Leader Leading market position in all segments Significant sustainable competitive advan
Slide 22: Delivering on Commitments
At IPO Current 15 36.51 2005 2006 2007 234 319 475 2005 2006 2007 511 606 827 2005 2006 2007 403 537 666 2005 2006 2007 70 89 114 2005 2006 2007 NM 0.98 1.61 Delivering on Commitments Financial Metrics Performance Sales ($MM) % Growth 33% 24% Adjusted EBITDA ($MM) % Growth 27% 28% 32% Pro Forma EPS
Slide 23: Appendix: Reconciliation of Net Income to Adjusted EBITDA
SECTION 5 Appendix Reconciliation of Net Income to Adjusted EBITDA
Slide 24: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA In Millions Years Ended December 31, 2003 2004 2005 2006 2007 Net income (loss) $(7) $23 $8 $27 $44 Interest expense, net 12 5 10 25 22 Income tax expense 3 10 7 13 17 Depreciation and amortization 11 8 11 23 20 EBITDA $19 $46 $36 $88 $103 EBITDA $19 $
Slide 25: Chart: Innovation. Experience. Performance.
CHART(R) Innovation. Experience. Performance.(TM)