Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Investor Presentation (June 2010)
25 slides from Chart Industries's investor presentation, Jun 7, 2010
Slide 1: Chart Industries, Inc. Investment Highlights
Exhibit 99.1 Chart Industries, Inc. Investment Highlights June 8, 2010
Slide 2: Disclosure
Disclosure Forward-Looking Statements: 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”, “for
Slide 3: Section 1: Company Overview
Innovation. Experience. Performance.” 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 12 manufacturi
Slide 5: E&C Segment Overview
E&C Segment Overview Selected Products 2009 Sales by Product/Region RoW Production 20% Cold Boxes and LNG VIP 32% U.S. 36% Americas (Non-US) 5% Heat Exchanger Heat Europe Exchangers Asia 1% 68% 38% Highlights Leading provider of heat exchangers and cold boxes critical to LNG, Olefin petrochemicals a
Slide 6: D&S Segment Overview
D&S Segment Overview Selected Products 2009 Sales by Product/Region LNG Terminals Distribution Beverage Liquid and Vehicle Fuel CO Systems Systems 7% Americas RoW ² (Non-US) 5% 8% 7% Parts, Repair and On- Site Service Asia 11% 13% U.S. VIP, Systems 49% and Components 6% Packaged Gas Bulk Storage Sys
Slide 7: BioMedical Segment Overview
BioMedical Segment Overview Selected Products 2009 Sales by Product/Region Other Americas End-Use Consumption Respiratory 5% (Non-US) Therapy 9% Systems 46% Asia 10% U.S. 34% Stainless Steel Freezer Biological Storage Systems Europe 49% 47% Highlights Portable Oxygen Strong expected growth in oxygen
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 40% 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
Energy Trends World Primary Energy Demand by Fuel* World primary demand for natural gas expands on average by 1.5% per year. The biggest increases occur in the Middle East, China and India. New power generation stations absorb 45% of the increase. * Cumulative energy investment needs amount to $26 t
Slide 11: Energy Trends
Energy Trends Cumulative Investment in Gas-Supply Infrastructure by Activity, 2008-2030* Total Investment over Period: $5.1 trillion “Overall global Capex on LNG facilities for the 2010-2014 period is forecast to total over $108 billion – a growth of 10% relative to the 2005-2009 period.” Source: Do
Slide 12: Energy Trends
Energy Trends Natural gas is increasing its penetration as a viable transportation fuel due to its high energy density, lower costs, and low emissions Chart provides products / solutions for the full LNG value chain from LNG terminal equipment / liquefiers to on-board fuel tanks Technical and propri
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 strong balance sheets and more than adequate liquidity, such as Chart Chart’s acquisition criteria – Global niche engineered equipment, systems or aftermarket business – Fit with Chart v
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 expenditures North America Europe Asia-Pacific
Slide 16: Section 3: Financial Overview
SECTION 3 Financial Overview
Slide 17: Strong Track Record of Successful Execution
Strong Track Record of Successful Execution Drivers of Growth Distribution & Storage CAGR – Expanding aftermarket business (2003-2009) – Global relationships with major industrial gas Sales 14% companies EBITDA 23% – Well positioned in areas of expected growth – Alternative fuel opportunities with L
Slide 18: 2010 Outlook - Improving Order Trends
2010 Outlook - Improving Order Trends * Source: JP Morgan Global Manufacturing PMI 17
Slide 19: 2010 Outlook - Senior Credit Facility Refinancing
2010 Outlook - Senior Credit Facility Refinancing Chart has refinanced its current senior secured capital structure, putting in place a new $200 million senior secured credit facility - $135 million Senior Secured Revolver - $65 million Senior Secured Term Loan, 10% amortizing annually - Five year t
Slide 20: 2010 Outlook - Summary
2010 Outlook - Summary We continue to see an improving global market in all of our business segments as evidenced by the continued order improvement. Continue to pursue strategic accretive acquisitions to expand product and service offerings. First quarter results were in line with our expectations.
Slide 21: Section 4: Conclusion
SECTION 4 Conclusion
Slide 22: Positioned on Strong and Stable Platform for Growth
Positioned on Strong and Stable Platform for Growth Chart represents a unique investment opportunity to capitalize on the return of strong growth in the markets it serves, particularly natural gas processing Flexible Manufacturing Platform – Ability to ramp up or scale back production as demand fluc
Slide 23: Appendix
APPENDIX Reconciliation of Net Income to EBITDA
Slide 24: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA ($ In Millions) Years Ended December 31, 2003 2004 2005 2006 2007 2008 2009 Net Income (Loss) $ (7) $ 23 $ 8 $ 27 $ 44 $ 79 $ 61 Interest expense, net 12 5 10 25 22 18 16 Income tax expense 3 10 7 13 17 30 23 Depreciation and amortization 11 8 11 23 20 23 23 EB
Slide 25: Innovation. Experience. Performance.”
® Innovation. Experience. Performance.”