Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Investor Presentation (August 2019)
24 slides from Chart Industries's investor presentation, Aug 26, 2019
Slide 1: Chart Industries, Inc. Investor Update - August 2019
Chart Industries, Inc. Investor Update - August 2019 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company’s business plans, including statements regarding com
Slide 3: Chart at a Glance
HVAC, power and refining applications 5% Natural gas and LNG processing applications 52% Cryobiological storage 6% Bulk industrial gas applications 22% Packaged gas industrial applications 15% Breakdown by Segment (Pro forma LTM 2Q19) Breakdown by End Market (Pro forma LTM 2Q19) End Market Applicati
Slide 4: Staying Focused on Our Strategy
Staying Focused on Our Strategy Acquisition of Hudson Products Acquisition of Skaff Resegmentation and Leadership Changes Acquisition of VRV Sale of CAIRE Medical September 2017 January 2018 September 2018 November 2018 December 2018 July 1, 2019 Acquired Harsco’s Air-X-Changers Business Staying Foc
Slide 5: Chart Solutions & Products
Chart Solutions & Products Cold Boxes Specialty Pressure & Heat Transfer Equipment Brazed Aluminum Heat Exchangers Air Cooled Heat Exchangers Cryogenic Distribution & Storage Lifecycle Services LNG Virtual Pipeline Solutions Integrated Energy Systems
Slide 6: Product offering across the LNG and industrial gas value chain
E&C D&S Exploration, Production & Pipeline Processing/ Liquefaction Treatment Transportation Storage Lifecycle Services Value Proposition/ Application Re- gasification New with Air-X-Changers acquisition Engineered Tanks Engineered Tanks VJ Pipe Engineered Tanks VJ Pipe Trailers Shop Repair/Refub Ra
Slide 7: Taking Advantage of Tailwinds
Navy blue = 32.64.110 Light blue = 51.163.221 Green = 157.195.53 Orange = 253.164.30 Taking Advantage of Tailwinds Drivers of Results Correlation to Chart Q2 / FY Source: US Energy Information Administration, ADI Analytics, McKinsey, management Demand for LNG Market Growth Markets Regulatory Require
Slide 8: Market and Business Outlook
Market and Business Outlook Segment Market Drivers Chart Specific Opportunities Expected Organic Growth D&S East Industrial gas GDP 3% Regulatory IMO 2020 Infrastructure 2-5% 5-8% D&S West Industrial gas GDP 3% Specialty markets 2-4% 5-7% E&C Cryo Oil/gas prices Oil production NG processing Petroche
Slide 9: Where We Play in Global Infrastructure
Where We Play in Global Infrastructure
Slide 10: Big LNG Order Opportunities
Big LNG Order Opportunities Number Project Chart Customer Operator Size Chart Content Expected Timing of Chart orders 1 - BOOKED Calcasieu Pass BHGE Venture Global 10 MTPA 18 cold boxes, BAHX Q1 2019 2 – BOOKED Gimi (Tortue) Black & Veatch Golar 3.75 MTPA 4x Cold boxes, BAHX 1H 2019 3 Driftwood Bech
Slide 11: Global LNG Opportunities
Global LNG Opportunities *Source: Bloomberg **Source: IGU World LNG Report – 2019 Edition, IHS Markit, Company Announcements Note: Terminal numbers correspond to Appendix International liquefaction projects* Global receiving terminals locations** Regasification capacity and 2025 forecast* Potential
Slide 12: Small and Utility-Scale LNG
Small and Utility-Scale LNG Road transportation Refueling infrastructure Industrial fuel supply China Over-the-road transportation Refueling infrastructure (including LNG, CNG and LCNG) India Mining Gas/fuel for off-pipeline grid locations Mexico Power generation Refueling infrastructure service/rep
Slide 13: ssLNG Order Opportunities
ssLNG Order Opportunities Number Project Chart Customer Operator Chart Content Expected Timing of Chart orders 1 Utility-scale project for U.S. East Coast ODIN Confidential C50N Booked 2 Utility-scale project for Northeast ODIN Confidential C50N, 5x100k gallon storage Booked 3 NorthEast Energy Cente
Slide 14: India's Gas Buildout is Accelerating
India’s Gas Buildout is Accelerating Gas Infrastructure Map of India (2018) India’s Natural Gas Infrastructure Growth L/CNG Fueling Station Growth Currently over 250 CGD geographic areas – accelerates infrastructure expansion 7 major companies authorized; Chart has MOUs with two largest (IOCL and AG
Slide 15: Specialty Markets Also Driving Growth
Specialty Markets Also Driving Growth Food & Beverage Cannabis Lasers Hydrogen Water Treatment -80 Degrees Freezers Supplying big food & beverage companies Nitrogen dosing and food preservation equipment Use of CO2 in grow houses to increase grow yields Super-critical CO2 in extraction process High
Slide 16: Leveraging Our Global Operations
Leveraging Our Global Operations Europe D&S West D&S East D&S East Asia-Pacific Americas Corporate Headquarters Ball Ground, GA E&C E&C Navy blue = 157.195.53 Light blue = 51.163.221 Green = 157.195.53 Orange = 253.164.30 Ferox – Decin, CR GOFA –Germany Flow – Germany VCT Vogel – Germany Germany (Cr
Slide 17: Global Manufacturing Efficiencies
Global Manufacturing Efficiencies Replicating Product Lines Product Line Eliminations Production Changes Additional capacity Customer request Tariff flexibility Cost reductions Cost reductions Control of IP Cost reductions Control of subprocesses Why? Done: To Do: Second LNG vehicle tank line in Ita
Slide 18: 2019 YTD Margin Expansion
2019 YTD Margin Expansion ($M) Facility Reduction / Consolidation Headcount Reduction / Other Price Increases and Supply Chain Product Line Rationalization Projected Incremental Annual Savings E&C (Cryo and FinFans) Consolidated backoffice in La Crosse into manufacturing plant Announced Tulsa facili
Slide 19: Being Responsible Globally
Being Responsible Globally Environmental Social Governance Produce products used in clean energy and emissions reductions Customer offering of LifeCycle services to prolong product life and efficiency Community involvement Inclusive hiring practices Investing in training for all levels of employees
Slide 20: 2019 Guidance / Why Chart?
2019 Guidance Full Year 2019 FY 2018 Results Sales $1.08B 28.6% growth 13.4% organic growth Adjusted EPS $2.02 Capital Expenditures $36M Sales $1.41B - $1.46B Inclusive of 2019 portion of Calcasieu Pass and Golar Gimi And 2H 19 AXC Adjusted EPS (1) $2.85 - $3.20 Assumes 21% full year tax rate Incldu
Slide 21: 2020 Outlook
2020 Outlook Ref # Description Revenue ($M) Adjusted EPS 1 2020 Base Outlook as of June 2018 $1,380 - $1,400 $3.60 - $3.70 2 Calcasieu Pass, Gimi, ACHX for Bechtel 125 0.90 - 1.00 3 Additional restructuring completed 0.15 - 0.20 4 +VRV, - CAIRE, +/- Other (45) – (25) (0.15) – (0.13) 5 Harsco AXC net
Slide 22: Innovation. Experience. Performance.
© 2019 Chart Industries, Inc. Confidential and Proprietary Innovation. Experience. Performance.»
Slide 23: Distribution & Storage Overview
CAGR 10.5% Energy and Chemicals Sales and Gross Profit Trends ($mm) Distribution & Storage Sales and Gross Profit Trends ($mm) LTM 1Q19 End-Market Exposure Overview Designs, manufactures, and services cryogenic solutions for the storage and delivery of cryogenic liquids used in industrial gas and LN
Slide 24: Energy & Chemicals Overview
Energy and Chemicals Sales and Gross Profit Trends ($mm) Energy and Chemicals Sales and Gross Profit Trends ($mm) LTM 2Q19 End-Market Exposure Overview Supplies mission critical engineered equipment and systems used in the separation, liquefaction, and purification of hydrocarbon and industrial gase
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