Slide 1: 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", "forecast", "outlook", "intend",
Slide 2: Management Team Conference Participants
Management Team Conference Participants Samuel F. Thomas Chairman, Chief Executive Officer and President Michael F. Biehl Executive Vice President, Chief Financial Officer and Treasurer James H. Hoppel, Jr. Vice President - Corporate Development
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 ab
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 2007 segment sales derived from products used in energy applications; 53%
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 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: Energy Trends - Sustainable Long-Term Growth Drivers
Energy Trends - Sustainable Long-Term Growth Drivers Upstream Energy Conversion Transport/Storage LNG Base Load Mid Scale Peak Shave Enhanced Oil Recovery Nitrogen CO2 Gas to Liquids Natural Gas Processing Integrated Gasification Combined Cycle Coal to Liquids Oxy Fuel LNG Vacuum Insulated Pipe Sate
Slide 11: Energy Trends - Sustainable Long-Term Growth Drivers
Energy Trends - Sustainable Long-Term Growth Drivers 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
Slide 12: Industrial Gas Growth Expected to Be Robust
On-Site Gas Bulk Storage Systems Packaged Systems Market Size 26 29 45 On-Site/Pipeline 29% On-Site Gas Bulk Storage Systems Packaged Systems Market Size 24 29 47 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 lower-cost countries and near centers of demand Corporate Energy & Chemicals Distribution & Storage BioMedical Total: Manuf
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 LTM 6/30/08 92.326 326.732 295.368 714.426 D&S E&C ($MM) CAGR = 25% Drivers of Growth Signi
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 25% Sales and 34% Adjusted EBITDA CAGRs since 2003
Slide 18: Large Backlog Provides High Sales Visibility
Large Backlog Provides High Sales Visibility 2003 2004 2005 2006 2007 6/30/2008 BioMed 1.8 4.6 6.4 6.415 9.483 10.056 D&S 28 53.8 79.5 105.07 107.011 146.499 E&C 19.8 70.8 147.7 207.668 358.784 341.574 Total 49.6 129.2 233.6 319.153 475.278 498.137 ($MM) D&S E&C BioMed
Slide 19: Strong Free Cash Flow and Rapid Delevering
12/31/2005 12/31/2006 12/31/2007 6/30/2008 Net Debt 335.978 271.896 157.131 148.765 0 0 0 0 Leverage 4.8 3.05 1.38 1.1101 116 219.734 327.991 384.271 (1) Leverage ratio defined as total debt less cash and equivalents divided by Adjusted EBITDA Strong Free Cash Flow and Rapid Delevering Strong free c
Slide 20: Section: Conclusion
SECTION 4 Conclusion
Slide 21: Chart Positioned on Strong and Stable Platform for Growth
Chart Positioned on Strong and Stable Platform for Growth Business on a solid growth track Successful execution of projects in backlog and capitalizing on significant growth market opportunities Significant project wins and attractive project pipeline Demonstrated solid margin performance across all
Slide 22: Delivering on Commitments
At IPO Current 15 46.2 2005 2006 2007 6/30/2008 234 319 475 498 2005 2006 2007 LTM 6/30/08 511 606 827 800 2005 2006 2007 LTM 6/30/08 403 537 666 714 2005 2006 2007 LTM 6/30/08 70 89 114 134 2005 2006 2007 LTM 6/30/08 NM 0.92 1.52 2.25 Delivering on Commitments Financial Metrics Performance Sales ($
Slide 23: Appendix: Reconciliation of Net Income to Adjusted EBITDA
SECTION 5 Appendix Reconciliation of Net Income to Adjusted EBITDA
Slide 24: Chart
CHART 9 ® Innovation. Experience. Performance.™