Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Barclays Capital CEO Energy/Power Conference 2009
26 slides from Chart Industries's conference presentation, Sep 8, 2009
Slide 1: Barclays Capital CEO Energy/Power Conference September 2009
Exhibit 99.1 Barclays Capital CEO Energy/Power Conference September 2009
Slide 2: Disclosure
Disclosure This presentation includes “forward-lookingstatements” 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”, “forecast”, “outlook”, “intend”,
Slide 3: Section 1: Company Overview
SECTION 1 Company Overview
Slide 4: Company Overview
Company Overview Chart Industries is a leading provider of highly engineered cryogenic equipment for the hydrocarbon, industrial gas, and biomedical markets. Energy industry is the largest end-user of the Company’s products #1 or #2 in all primary markets served Global operations with 11 manufacturi
Slide 5: E&C Segment Overview
E&C Segment Overview Selected Products 2008 Sales by Product/Region RoW 8% Production Americas Cold Boxes and LNG VIP (Non-US) 37% 5% U.S. 27% Europe 3% Heat Exchanger Heat Exchangers Asia 63% 57% Highlights Leading provider of heat exchangers and cold boxes critical to LNG, IGCC and natural gas pro
Slide 6: D&S Segment Overview
D&S Segment Overview Selected Products 2008 Sales by Product/Region LNG Terminals Distribution Beverage Liquid and Vehicle Fuel CO 2 Systems RoW 2% Systems 6% Americas 7% (Non-US) Parts, Repair and On- 11% Site Service 10% Asia 17% VIP, Systems U.S. and Components 42% 5% Packaged Gas Systems Bulk St
Slide 7: BioMedical Segment Overview
BioMedical Segment Overview Selected Products 2008 Sales by Product/Region Americas End-Use Consumption Respiratory Other (Non-US) Therapy 7% 13% Systems 38% Asia 11% U.S. 38% Stainless Steel Freezer Biological Storage Systems Europe 49% 44% Highlights Portable Oxygen Strong expected growth in oxyge
Slide 8: Section 2: Chart Investment Highlights
SECTION 2 Chart Investment Highlights
Slide 9: Summary of Investment Highlights
Summary of Investment Highlights End markets are positioned to recover with strong energy demand – Energy demand recently forecasted to expand 45% between now and 2030* – Global investment of $26 trillion, over $1 trillion/year, is needed to keep up with demand* A market leader – Leading market posi
Slide 10: Energy Trends - Long-Term Growth Trends
Energy Trends - Long-Term Growth Trends Chart has extensive technology expertise across multiple energy applications Upstream Energy Conversion Transport/Storage LNG Gas to Liquids LNG Vacuum Insulated Pipe Base Load Integrated Gasification Satellite LNG Stations Combined Cycle Mid Scale Natural Gas
Slide 11: Energy Trends - Long-Term Growth Drivers
Energy Trends - Long-Term Growth Drivers Chart is well-positioned to capitalize on the return of strong global demand for energy applications Monetization of small to mid-scale natural gas reserves gaining market interest. These smaller projects address capex and project delay concerns of large base
Slide 12: Industrial Gas Market – Long Term Growth Trends
Industrial Gas Market – Long Term Growth Trends Global: $60 billion North America: $23 billion On-Site/Pipeline On-Site/Pipeline 25% Packaged 29% Gas/Equipment Packaged 45% Gas/Equipment 47% Bulk Storage Systems Bulk Storage 28% Systems 26% Industrial Gas Growth is Expected to Return, Significantly
Slide 13: Leading Proprietary Technology and Designs
Leading Proprietary Technology and Designs Take advantage of leading proprietary technology and designs through new product development Brazed Aluminum Heat Satellite LNG Storage Exchangers MicroBulk Air Cooled Heat Exchangers 12
Slide 14: Growth Initiatives
Growth Initiatives Current economic environment continues to provide acquisition opportunities for Companies with a strong balance sheet and more than adequate liquidity, such as Chart Acquisition criteria include: – Global niche engineered equipment, systems or aftermarket business – Fit with Chart
Slide 15: Global Manufacturing and Distribution Platform
Global Manufacturing and Distribution Platform Manufacturing facilities are strategically located in lower-cost countries and near centers of demand Operating leverage provides the flexibility to expand and reduce capacity as needed with minimal capital expenditure North America Europe Asia-Pacific
Slide 16: Section 3: Financial Overview
SECTION 3 Financial Overview
Slide 17: Strong Sales Growth
Strong Sales Growth Drivers of Growth 744 Distribution & Storage 700 666 – Expanding aftermarket business – Product line extensions in MicroBulk and Trifecta 600 313 – Global relationships with major industrial gas 537 254 companies 500 – Well positioned in areas of expected growth (Asia & Eastern E
Slide 18: Strong Track Record of Successful Execution
Strong Track Record of Successful Execution EBITDA Impressive growth 180 – 23% Sales and 51% EBITDA CAGRs 160 150 since 2003 – Flexible manufacturing platform with 140 significant international exposure 120 103 Demonstrated ability to grow the 100 88 business successfully and improve margins 80 60 4
Slide 19: Backlog has Tempered Impact of Economic Downturn
Backlog has Tempered Impact of Economic Downturn 500 475 450 399 400 350 319 300 359 266 250 234 208 200 148 150 129 100 71 50 107 126 105 50 80 20 54 28 5 6 6 9 7 0 2 2003 2004 2005 2006 2007 2008 E&C D&S BioMed 18
Slide 20: EBITDA Margin Improvement
EBITDA Margin Improvement Year over year sales decline attributed to lower volumes across segments due to the poor economic environment and unfavorable currency effects. EBITDA performance benefited from improved project execution and ongoing cost reduction initiatives – Gross Margin improvement (+3
Slide 21: Positive Developments
Positive Developments Current economic environment has been challenging but recent developments support some optimism Order trends in D&S and BioMedical have shown some recent signs of stabilization/improvement. – BioMedical has traditionallybeen counter-cyclic and order trends continue to hold up a
Slide 22: Section 4: Conclusion
SECTION 4 Conclusion
Slide 23: Positioned on Strong and Stable Platform for Growth
Positioned on Strong and Stable Platform for Growth Chart represents a unique investment opportunity to capitalize on the return of strong growth in the markets it serves Flexible Manufacturing Platform – Ability to ramp up or scale back production as demand fluctuates – Necessary capacity expansion
Slide 24: Appendix: Reconciliation of Net Income to EBITDA
APPENDIX Reconciliation of Net Income to EBITDA
Slide 25: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA ($ In Millions) Years Ended December 31, H1 H1 2003 2004 2005 2006 2007 2008 2008 2009 Net Income (Loss) $ (7) $ 23 $ 8 $ 27 $ 44 $ 79 $ 37 $ 37 Interest expense, net 12 5 10 25 22 18 9 8 Income tax expense 3 10 7 13 17 30 16 18 Depreciation and amortization 11
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Chart Industries — Barclays Capital CEO Energy/Power Conference 2009 on 6ix