Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Investor Presentation (June 2008)
25 slides from Chart Industries's investor presentation, Jun 23, 2008
Slide 1: Investment Highlights June 2008
Investment Highlights June 2008 Sam Thomas Chairman, Chief Executive Officer and President Michael Biehl Executive Vice President, Chief Financial Officer and Treasurer Exhibit 99.1
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 Exhibit 99.1
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 Exhibit 99.1
Slide 9: Summary Investment Highlights
Summary Investment Highlights Strong and growing end markets Energy infrastructure spend of $2.4 trillion expected 2006-2030 LNG infrastructure spend of $250 billion expected over next 30 years LNG liquefaction capacity expected to grow 15% annually Well positioned in areas of strong economic growth
Slide 10: Positive Energy Market Fundamentals
Positive Energy Market Fundamentals Sources: "LNG World Energy Outlook" May 19-20, 2005 International Energy Agency Presentation; BP Statistical Review; Energy Information Administration Chart is well-positioned to capitalize on the strong demand for energy and the increasing use of natural gas and
Slide 11: Positive Energy Market Fundamentals (continued)
Positive Energy Market Fundamentals (continued) Sources: Wood Mackenzie Chart is well-positioned to capitalize on strong global demand for energy applications Monetization of small to mid-scale natural gas reserves gaining market interest, which address Capex and project delay concerns of large base
Slide 12: Strong Industrial Gas Market
On-Site Gas Bulk Storage Systems Packaged Systems Market Size 26 25 49 On-Site/Pipeline 29% On-Site Gas Bulk Storage Systems Packaged Systems Market Size 22 27 51 Strong Industrial Gas Market Industrial Gas Growth is Expected to be Robust, Significantly Exceeding GDP Growth Source: Spiritus Consulti
Slide 13: Leading Proprietary Technology and Designs
Satellite LNG Storage Leading Proprietary Technology and Designs Take advantage of leading proprietary technology and designs through new product development Extend competitive advantage in use of proprietary vacuum insulation manufacturing technology Brazed Aluminum Heat Exchangers Microbulk Air Co
Slide 14: Section: Financial Overview
SECTION 3 Financial Overview Exhibit 99.1
Slide 15: Strong Sales Growth Combined With...
Strong Sales Growth Combined With... BioMedical D&S E&C Total 2003 66.6 140.3 58.6 265.5 2004 73.3 162.6 69.6 305.6 2005 72.9 209.2 121.1 403.2 2006 78 268.303 190.673 537.45 2007 90.158 322.4 253.672 666.395 LTM 3/31/08 88.868 320.13 275.263 684.261 D&S E&C ($MM) CAGR = 25% Drivers of Growth Signif
Slide 16: 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 25% Sales and 34% Adjusted EBITDA CAGRs since 2
Slide 17: Continued Solid Performance in First Quarter 2008
Continued Solid Performance in First Quarter 2008 Q1 07 Q1 08 E&C 52.3 73.9 D&S 76.8 74.3 BioMed 23.4 22.1 152.5 170.3 Q1 07 Q1 08 E&C 6 21.4 D&S 25.8 22 BioMed 8.1 8.6 39.9 51.9 Q1 07 Q1 08 Net Income 7.2 14.7 Net income more than doubles on net sales growth of 12%. Significant margin improvement a
Slide 18: Large Backlog Provides High Sales Visibility
Large Backlog Provides High Sales Visibility 2003 2004 2005 2006 2007 3/31/2008 BioMed 1.8 4.6 6.4 6.415 9.483 9.973 D&S 28 53.8 79.5 105.07 107.011 124.175 E&C 19.8 70.8 147.7 207.668 358.784 334.793 Total 49.6 129.2 233.6 319.153 475.278 468.941 ($MM) D&S E&C BioMed Exhibit 99.1
Slide 19: Strong Free Cash Flow and Rapid Delevering
12/31/2005 12/31/2006 12/31/2007 3/31/2008 Net Debt 335.978 271.896 157.131 142.063 0 0 0 0 Leverage 4.8 3.05 1.38 1.147 116 219.734 327.991 355.993 (1) Leverage ratio defined as total debt less cash and equivalents divided by Adjusted EBITDA Drivers of Growth Strong Free Cash Flow and Rapid Delever
Slide 20: Section: Conclusion
SECTION 4 Conclusion Exhibit 99.1
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 A market leader Leading market position in all segments Significant sustainable competitive advantag
Slide 22: Delivering on Commitments
At IPO Current 15 44.22 2005 2006 2007 3/31/2008 234 319 475 469 2005 2006 2007 LTM 3/31/08 511 606 827 817 2005 2006 2007 LTM 3/31/08 403 537 666 684 2005 2006 2007 LTM 3/31/08 70 89 114 124 2005 2006 2007 LTM 3/31/08 NM 0.93 1.52 1.78 Delivering on Commitments Financial Metrics Performance Sales (
Slide 23: Appendix: Reconciliation of Net Income to Adjusted EBITDA
SECTION 5 Appendix Reconciliation of Net Income to Adjusted EBITDA Exhibit 99.1
Slide 24: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA In Millions Years Ended December 31, Years Ended December 31, Years Ended December 31, Years Ended December 31, Years Ended December 31, 2003 2004 2005 2006 2007 LTM Net Income (Loss) $ (7) $ 23 $ 8 $ 27 $ 44 $ 52 Interest expense, net 12 5 10 25 22 21
Slide 25: Chart: Innovation. Experience. Performance.
SCHART 3 ® Innovation. Experience. Performance.”