Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Investor Presentation (April 2023)
49 slides from Chart Industries's investor presentation, Apr 11, 2023
Slide 1: Chart Industries, Inc. Investor Update April 11, 2023
Chart Industries, Inc. Investor Update April 11, 2023 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made in this investor presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning Chart’s business plans, including statements regarding
Slide 3: Executed to Date On-Schedule and to Targets
Executed to Date On-Schedule and to Targets # Action What we said in November 2022 As of April 10, 2023 Status 1 Financing Did not expect to close into the bridge and would seek to limit amount of KPS Capital Partners (KPS) preferred stock Completed long term financing in December 2022; Closed witho
Slide 4: Continue to Execute On-Schedule and to Targets
Continue to Execute On-Schedule and to Targets # Action What we said in November 2022 As of April 10, 2023 Status 1 Cost synergies, year 1 $175 million $175 million Additional opportunities for upside and buffer 2 Commercial synergies, year 1 $150 million $150 million with customer inbounds increasi
Slide 5: Demand Highlights
Cooler Together. ™ Demand Highlights
Slide 6: First Quarter 2023 Demand Highlights
First Quarter 2023 Demand Highlights Chart Full Q1 + Howden Stub Period Comments First-of-a-Kind Orders 21 Same number of FOAKs as Q4 2022 New Customers 90 Up from 79 new customers in Q4 2022 Up from 84 new customers in Q1 2022 Orders Approximately $740 million Howden stub-ownership period orders of
Slide 7: Chart Example Order Wins Q1 2023
Chart Example Order Wins Q1 2023 Big LNG Chart received the purchase order for air cooled heat exchangers, BAHX and ethylene tank for the Sempra Infrastructure Port Arthur LNG project from Bechtel Space Exploration Chart received the purchase order for 5 1000m3 tanks and 3-125k LOX storage tanks for
Slide 8: Howden Example Order Wins Q1 2023
Howden Example Order Wins Q1 2023 Ashbridges Bay, Wastewater Treatment, Canada First of ten compressors ordered from this new customer to help efficiently manage wastewater treatment in the second largest such facility in Canada Adicomp, Italy A total of 22 compressors sold in Q1 2023 to this custom
Slide 9: Chart (including Howden) Executed MOUs in Q1 2023
Chart (including Howden) Executed 6 MOUs in Q1 2023 Category Chart Howden Q1 2023 Total # of partnerships expanded to both Chart & Howden Multiple decarbonization/energy efficiency applications 1 1 1 CCUS / CO2 2 Hydrogen (including liquefaction) 2 1 3 7 Water treatment 1 1 1 LNG (including liquefac
Slide 10: 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 April 10, 2023 BigLNG (greater than 5 MTPA) 1 Number of reasonably possible projects to move to order stage in next 3 years 10 22 24 (excludes w
Slide 11: Highlighting the Space Exploration Market Demand
Highlighting the Space Exploration Market Demand In Q1 2023, three separate large space exploration customers each placed individual orders for $2.1 million+ (total $6.5 million in space orders in Q1 2023); With a batch of new design rockets recently proven and more to be launched soon we expect con
Slide 12: Macro Tailwinds Continue Globally (Examples)
Macro Tailwinds Continue Globally (Examples) # End Market Recent Activity Date of News Chart Impact 1 Water Treatment Environmental Protection Agency (EPA) proposed first ever national standard to address PFAS contamination in drinking water. EPA will require public water systems to monitor for six
Slide 13: Strength in Backlog Supports Strong 2023
Strength in Backlog Supports Strong 2023 Chart Record backlog at 3/31/2023 Approximately 60% of 2023 revenue outlook was in backlog as of 12/31/2022 Chart’s revenue mix is ~65% to 70% project and ~30% to 35% book and ship Howden Record backlog at 3/31/2023 Howden’s revenue mix is ~48% aftermarket an
Slide 14: Cost Synergy Updates
Cost Synergy Updates March 17, 2023 (Close of Howden Acquisition) to April 10, 2023
Slide 15: Expected Annual Cost Synergies
Expected Annual Cost Synergies Sourcing (~35%) Benefit from volume leverage Chart able to utilize Howden machines where currently using competition Chart and Howden to insource third party, sub-contracted processes Indirect Spend (~20%) Rationalization (~45%) Facility and resource consolidation to r
Slide 16: First Weeks of Howden Ownership: Cost Synergies
First 3 Weeks of Howden Ownership: Cost Synergies We have achieved ~$31.5 million of annualized cost synergies since we closed on the Howden acquisition on March 17, 2023 ahead of original schedule
Slide 17: Cost Synergy Targets & Achievements (1/3)
Cost Synergy Targets & Achievements Since Acquiring Howden (from March 17, 2023 to April 10, 2023) (1/3) # Category Description Status Actual Achieved to date Annualized $M 1 Sourcing Total year 1 annualized target = ~$70 MILLION Over $9.7 MILLION 2 Insource Howden compressors on Chart projects in b
Slide 18: Cost Synergy Targets & Achievements (2/3)
Cost Synergy Targets & Achievements Since Acquiring Howden (2/3) # Category Description Status Actual Achieved to date Annualized $M 1 Optimization, Resources, and Organization Total year 1 annualized target = ~$70 MILLION Over $21.8 MILLION 2 Rationalize executive team Complete $5.24 3 Reduced cost
Slide 19: Cost Synergy Targets & Achievements (3/3)
Cost Synergy Targets & Achievements Since Acquiring Howden (from March 17, 2023 to April 10, 2023) (3/3) # Category Description Status Actual Achieved to date Annualized $M 1 Facilities Total year 1 annualized target = ~$35 MILLION N/A 2 Houston area consolidation Underway N/A 3 US aftermarket site
Slide 20: Other Integration Accomplishments Achieved to Date
Other Integration Accomplishments Achieved to Date Talent Programs Added two high potential Howden team members to the Emerging Leaders Program Cost avoidance / delivery improvements Leverage a Chart specific senior level supplier relationship to improve past due supply chain items to Howden EU Othe
Slide 21: Commercial Synergy Updates
Commercial Synergy Updates March 17, 2023 (Close of Howden Acquisition) to April 10, 2023
Slide 22: Expected Commercial Synergies (Revenue)
Expected Commercial Synergies (Revenue) Sourcing (~35%) Benefit from volume leverage Chart able to utilize Howden machines where currently using competition Chart and Howden to insource third party, sub-contracted processes Indirect Spend (~20%) Rationalization (~45%) Facility and resource consolida
Slide 23: First Weeks of Howden Ownership: Commercial Synergies
First 3 Weeks of Howden Ownership: Cost Synergies We have achieved over $7 million of commercial synergy orders since we closed on the Howden acquisition on March 17, 2023 ahead of original schedule
Slide 24: Commercial Synergies Targets & Achievements
Commercial Synergies Targets & Achievements Since Acquiring Howden (from March 17, 2023 to April 10, 2023) # Synergy Description Status $ amount achieved to date in wins 1 Total year 1 commercial synergy target = $150 million (note that this is not included in our outlook) Over $7 MILLION 2 Expanded
Slide 25: LNG & Energy Synergies and Proprietary
LNG & Energy Synergies © 2023 Chart Industries, Inc. Confidential and Proprietary Chart includes Howden compressor equipment in LNG process Cooling Fans for compressor packages for Middle East (hot, dry regions) Access to North America market for Howden compressor products Heat Recovery with Air Coo
Slide 26: Water Treatment Synergies and Proprietary
Water Treatment Synergies © 2023 Chart Industries, Inc. Confidential and Proprietary Ultra Pure Water treatment solutions for Hydrogen Electrolysis Water reuse treatment trains including blowers, FR-RO, and remineralization Large scale pressure vessel filtration systems sometimes require blowers for
Slide 27: Mine Safety & Nuclear Synergies and Proprietary
Mine Safety & Nuclear Synergies © 2023 Chart Industries, Inc. Confidential and Proprietary Air cooled heat exchangers - Mine Cooling Heating Chart fueling systems for haul trucks - opens the surface or open cut mining market Leasing - lends itself to the temporary ventilation temperature control bus
Slide 28: Industrials Synergies and Proprietary
Industrials Synergies © 2023 Chart Industries, Inc. Confidential and Proprietary Use Hudson heat exchangers combined with ultra low noise fans from Howden Global solution offering to Key Accounts and LTA opportunity for expansion (e.g. industrial gas cooperating with steel companies for green steel
Slide 29: Specialty Synergies and Proprietary
Specialty Synergies © 2023 Chart Industries, Inc. Confidential and Proprietary Leverage Howden mining relationships to offer vehicle or power gen decarb Utilize Doser and CO2 distributors for leads for Howden F&B Products Utilize Howden Packagers for distribution of Doser Product Pull Howden product
Slide 30: Aftermarket, service, repair synergies and Proprietary
Aftermarket, service, repair synergies © 2023 Chart Industries, Inc. Confidential and Proprietary Service Centers– proximity to customers & install base Field Service Support – Americas + Global Sales network for all products Expand service center capabilities in existing locations Cross training fi
Slide 31: APAC & China Footprint Aftermarket, Service and Repair
APAC & China Footprint Aftermarket, Service and Repair Sri City Chennai Kaohsiung City Fukuoka Singapore Wangara Cardiff Nanjing Changzhou Shanghai Hosur Ulju-gun Pyeongtaek Nam-gu Weihai City Facility Categorization Cardiff Service Changzhou New Build Chennai New Build|Service Fukuoka-shi Service H
Slide 32: Europe Footprint Aftermarket, Service and Repair
Chesterfield Hungerford Membury After Market Primary Facility Function New Build Zuidland Renfrew Meyzieu Gablingen Buttelborn Frankenthal Coswig Gothenburg Rheden Wenden Naestved Zwijndrecht Goch Monheim am Rhein Murcia Service Coverage Peterborough Madrid Bagnolo Cremasco Nannine Ghent Lery Feigni
Slide 33: Africa Footprint Aftermarket, Service and Repair
After Market Primary Facility Function New Build Cape Town Service Coverage Sasolburg Johannesburg Middelburg Jebel Ali Freezone City Facility Categorization Cape Town Service Jebel Ali Freezone Service Johannesburg New Build|Service Middelburg Service Sasolburg Service|Parts Africa Footprint Afterm
Slide 34: Hydrogen Synergies
Hydrogen Synergies GTLS: GAS TO LIQUID SYSTEMS®
Slide 35: CCUS Synergies
CCUS Synergies
Slide 36: 2022 Sustainability and ESG Report Issued
2022 Sustainability and ESG Report Issued
Slide 37: Key Takeaways of our 2022 Sustainability Report
Key Takeaways of our 2022 Sustainability Report Achieved our lowest Total Recordable Incident Rate (TRIR) of our Company’s history at 0.52. Reached our goal of 30% reduction in greenhouse gas (GHG) intensity eight years before 2030 (our goal horizon) and we remain committed to achieving carbon neutr
Slide 38: Chart Standalone ESG Scorecard 2022
Chart Standalone ESG Scorecard 2022 Environmental Governance Social Increasing the ESG Metrics We Track In 2022, Chart Products… Global D&I Committee Safety is our #1 Priority Engineering Fellows & Key Experts, Rotational Engineering Program, Internships/Co-ops (including micro internships), Emergin
Slide 39: Howden Standalone ESG Scorecard 2022
Howden Standalone ESG Scorecard 2022 Environmental Governance Social Targets Helping Customers Achieve ESG targets… Targets Global Wellbeing Week Bright Futures Program Stay Secure Howden Ethics Point Hotline Compliance Week Reduce Scope 1 and 2 carbon footprint 50% by 2030 Carbon net zero by 2035 G
Slide 40: Setting More Ambitious Emissions Reductions Targets
Setting More Ambitious Emissions Reductions Targets Committed to reducing our greenhouse gas (GHG) intensity 50% by 2030, relative to our 2020 baseline as well as pledging carbon neutrality by 2050 [targets are inclusive of Howden] *Chart has reached and exceeded our goal of reducing GHG intensity b
Slide 41: Appendix – About Howden + Chart
Appendix – About Howden + Chart
Slide 42: Benefits of the Combination
Benefits of the Combination 11 93 165 0 0 0 89 89 89 51 163 220 249 166 63 157 195 53 191 191 191 0 71 133 More first-of-a-kind full solution opportunities in the Nexus of Clean™ Less cyclicality: expands aftermarket, service and repair, and creates balance between project-based and book and ship or
Slide 43: Combined Solutions Across the Nexus of Clean
Combined Solutions Across the Nexus of Clean™ Alternate version 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 Steam Turbines SaaS Vaporizers
Slide 44: Howden Product Portfolio
Howden Product Portfolio 11 93 165 0 0 0 89 89 89 51 163 220 249 166 63 157 195 53 191 191 191 0 71 133 VentSim™ Design Uptime Software & Digital Reciprocating Screw Diaphragm Centrifugal Compressors Gas-Gas Heater Air Preheater Rotary Heaters Blowers & Fans Rotary Blowers Turbo Blowers Centrifugal
Slide 45: Expanding Exposure to Additional Markets
Expanding Exposure to Additional Markets 11 93 165 0 0 0 89 89 89 51 163 220 249 166 63 157 195 53 191 191 191 0 71 133 Industrial Gas Howden additions LNG Food & Beverage Biofuels Marine Systems Critical Care Metal Mining Energy & Chemical Hydrogen Space Cannabis Lasers Tunnel & Metro Biomass Over
Slide 46: How We Think About The Business
Cryo Tank Solutions Heat Transfer Systems One Chart Global Commercial Team 02/15/2022 Repair, Service & Leasing 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 Chart New
Slide 47: Combination Reduces Chart's Cyclicality
Combination Reduces Chart’s Cyclicality 11 93 165 0 0 0 89 89 89 51 163 220 249 166 63 157 195 53 191 191 191 0 71 133 Chart 2008 - 2018 Chart FYE 12/31/2022 Chart + Howden 1 >90% of sales related to traditional O&G and industrial gas 38% of sales related to traditional O&G and industrial gas 28% of
Slide 48: Complementary Exposure to Specialty Markets
Complementary Exposure to Specialty Markets Market What is in this category Approximate % of annual revenue % of revenue Growth Drivers Chart Howden Combined Estimated Mkt growth opportunity Aftermarket, repair, and service Field service Remote monitoring Spare parts 14% 48% 31% +20% Penetration of
Slide 49: Specialty Products: Total Addressable Market Increase
$ 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% $11.00 27.8% CCUS Marine 1.00
Chart Industries — Investor Presentation (April 2023) on 6ix