Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Q3 2020 Earnings Presentation
31 slides from Chart Industries's earnings presentation, Nov 10, 2020
Slide 1: Chart Industries Investor Presentation, November 2020
Chart Industries INVESTOR PRESENTATION, NOVember 2020 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: Our Strategy With Focus on Clean Energy, Specialty Products, Repair & Service
Our Strategy With Focus on: Clean Energy, Specialty Products, Repair & Service © 2020 Chart Industries, Inc. Confidential and Proprietary A B D C 1. Market Trends 2. Profitable Growth E Community & Employees Environmental, Social & Governance Building capabilities to support other strategic pillars
Slide 4: Macro Trends
Macro Trends Energy Transition 7 Million people/year die from air pollution Reducing annual CO2 emissions From 33 to 18 billion tons Population Growth Nearly 1 Billion people live without Electricity. Rising secondary cities Sustainability Water scarcity impacts 40% of the world’s population. Over 3
Slide 5: How We Think About the Business
Cryo Tank Solutions Heat Transfer Systems Global Commercial Team © 2020 Chart Industries, Inc. Confidential and Proprietary Repair, Service & Leasing Air Cooled Heat Exchangers (ACHX), Brazed Aluminum Heat Exchangers (BAHX) Cold Boxes Nitrogen Rejection Units (NRU) Integrated systems High Efficiency
Slide 6: Broadest Product Offering for Industrial Gas and Energy
Broadest Product Offering for Industrial Gas and Energy © 2020 Chart Industries, Inc. Confidential and Proprietary Brazed Aluminum Heat Exchangers Packaged Gas Systems Cryogenic Bulk Storage Tanks Cryogenic Launch Umbilicals & Storage Nitrogen Dosing & Food Preservation LNG Virtual Pipeline Solution
Slide 7: Chart Offers Unique, Multi-Faceted, Interconnected Products to Address ESG Needs and Targets
Chart Offers Unique, Multi-Faceted, Interconnected Products to Address ESG Needs and Targets © 2020 Chart Industries, Inc. Confidential and Proprietary
Slide 8: Chart's Transformation
Chart’s Transformation Business Operations Higher customer concentration / lower geographic diversity Heavy reliance on single large LNG projects Significant backlog with PetroChina that went away in 2016 ($150M) Few long-term contracts in place Limited actions taken for cost rationalization Limited
Slide 9: BlueInGreen Transaction Highlights
BlueInGreen Transaction Highlights Technology Enabled Business Model Strong Financials Industry Leading Management Team Treatment-as-a-Service (TaaS) Expands Repair & Service Single technology drives unique solutions across discrete platforms with identical system installations Highest efficiency an
Slide 10: Customer Stickiness (LTAs, LOIs, MOUs)
Customer Stickiness (LTAs, LOIs, MOUs) MOUs / LOCs LTAs / Agreements Complete LOIs ExxonMobil India LNG and IOCL HLNG Customer 1 (2019) IG Major (A) Bulk & Lifecycle IOCL HLNG Customer 2 (2019) MIT tanks Risco Energy IG Major (A) Vaporizers Eagle Jax ssLNG Energy Capital Vietnam (ECV) IG Major (A) P
Slide 11: Hydrogen Market Trends
Hydrogen Market Trends Large COVID 19 Stimulus Funds Directed Towards “Green” Initiatives Aggressive GHG and CO2 Reduction Goals Being Established Globally Finding Partners Will Be Key to Capturing the New Growth Non-traditional Players Entering the Bulk Hydrogen Market Liquid Hydrogen Supply Chain
Slide 12: Where We Play In the Hydrogen Supply Chain
Where We Play In the Hydrogen Supply Chain Vehicle Fuel Stations Fueling Systems for Aerospace Marine Fuel Electronics Manufacturing Electricity Generation Ammonia production (fertilizers) Refining Cryogenic Liquid Tanks Liquid Transport Trailers, ISO Containers, Rail Cars, Marine transport Liquefac
Slide 13: Global LNG Infrastructure Buildout: Chart 3-Yr Opportunity
© 2020 Chart Industries, Inc. Confidential and Proprietary Global LNG Infrastructure Buildout: Chart 3-Yr Opportunity Mid-Scale LNG Export Terminals Marine Transport LNG Import, ssLNG and Regas LNG by Road LNG by Rail Virtual Pipelines LNG Fuel Stations >$750M >$50M >$50M >$25M >$250M >$175M >$750M
Slide 14: ISO Containers = High Demand
ISO Containers = High Demand © 2020 Chart Industries, Inc. Confidential and Proprietary Shipping Bunkering Fueling Power Generation Ideal for Small Scale and Remote Projects with Smaller LNG Consumption Where Transport on Dedicated LNG Carrier is not Feasible Scalability – Storage and Transport Effi
Slide 15: LNG, Hydrogen: We Play in Both With Similar Strategy
LNG, Hydrogen: We Play in Both With Similar Strategy Source: Wood Mackenzie, Chart Industries Gas infrastructure and LNG developers looking to extend the life of their assets; future potential to leverage LNG equipment / infrastructure for Hydrogen Gas and LNG Hydrogen Scale / Liquidity Participants
Slide 16: Specialty Markets Driving Growth
Specialty Markets Driving Growth 250M 500M 700M 750M 1100M Space Cryogenic liquid propellants are used as fuel for rocket propulsion Drivers of Size Opportunity Proliferation of private space travel industry Industrial Lasers High purity liquid nitrogen (gas assist) provides a faster cut and superio
Slide 17: Water Treatment Broad Market Trends
Water Treatment Broad Market Trends Energy-Water Nexus Increasing Water Scarcity Aging Infrastructure Population & Economic Growth Climate Change & Role of Corporate Sustainability © 2020 Chart Industries, Inc. Confidential and Proprietary
Slide 18: How Does Chart Equipment Work with BIG
© 2020 Chart Industries, Inc. Confidential and Proprietary How Does Chart Equipment Work with BIG Chart provides the cryogenic storage and vaporization equipment that provides the feed gas to BlueInGreen BlueInGreen attains a supersaturated solution and delivers it to the basin, pipe, lagoon, lake,
Slide 19: Combined Water Capabilities
© 2020 Chart Industries, Inc. Confidential and Proprietary Combined Water Capabilities Oxygenation (Oxygen) pH Adjustment (CO2) Oxidation (Ozone) Odor Control (Oxygen) Biological Treatment Environmental Remediation Advanced Acquaculture Disinfection Taste & Odor Control Sludge Reduction Alkalinity A
Slide 20: Water and wastewater treatment process and sustainability impact
© 2020 Chart Industries, Inc. Confidential and Proprietary Our water and wastewater treatment process is a safe and natural method that avoids chemical treatments while improving efficiency and reducing costs Last year, Chart products treated over one billion gallons of water a day in the U.S. Clean
Slide 21: We Help Our Customers Achieve ESG Targets: Cargill and MC Pack
We Help Our Customers Achieve ESG Targets With Our Specialty Products © 2020 Chart Industries, Inc. Confidential and Proprietary Case Study: Cargill and MC Pack Geography: Brazil Application: LN2 dosing (including our MicroDose feature providing consistent 2 to 3 psi bottle pressures) for vegetable
Slide 22: One Chart Customer Experience: Life Cycle Based Ecosystem
Revenue increase Margin maximization Enhancing customer satisfaction Elevating entry barriers for competitors Local customer facing interface LH2 pump LNG/LH2/H2 metering LNG pump in tank HLH2 tank Storage tank for compact station LNG/LH2/H2 dispenser Vehicle fuel tank IOT – remote control and helpd
Slide 23: Leveraging Our Global Operations
Leveraging Our Global Operations Europe D&S West D&S East Asia-Pacific Americas Corporate Headquarters Ball Ground, GA Ferox – Decin, CR GOFA –Germany Flow – Germany VCT Vogel – Germany VRV – Italy VRV/Cryo Diffusion – France VRV – Italy IMB – Italy Hudson/Cofimco – Italy Changzhou, China VRV – Indi
Slide 24: Financial Update
Financial Update © 2020 Chart Industries, Inc. Confidential and Proprietary
Slide 25: Q3 2020 Backlog
© 2020 Chart Industries, Inc. Confidential and Proprietary Q3 2020 Backlog E&C Cryo E&C FinFans D&S West D&S East Total Chart Includes $46M of VG Calcasieu Pass Included $134M of VG Calcasieu Pass Includes $46M of VG Calcasieu Pass Included $134M of VG Calcasieu Pass $611 $639 +5% Chart ex Calcasieu
Slide 26: Q3 and Year-to-Date 2020 EPS
© 2020 Chart Industries, Inc. Confidential and Proprietary Q3 and Year-to-Date 2020 EPS $ millions, except per share amounts Continuing Operations Q3 2020 Q3 2019 Change v. PY YTD 2020 YTD 2019 Change v. PY Net income from continuing operations $15.8 $13.8 $2.0 $32.4 $15.3 $17.1 Reported Diluted EPS
Slide 27: Full Year 2020 Guidance (Continuing Operations)
Full Year 2020 Guidance (Continuing Operations) © 2020 Chart Industries, Inc. Confidential and Proprietary Revenue Approximately $1.2B Includes $100M of Calcasieu Pass Diluted Adjusted EPS Approximately $2.25 Assumes 19% ETR Capital Expenditures $30M to $35M Prior Guidance Current Guidance Adjusted
Slide 28: 2021 Updated Outlook
2021 Updated Outlook © 2020 Chart Industries, Inc. Confidential and Proprietary Prior Revenue $1.250 - $1.325 Billion Includes $23M of Calcasieu Diluted Adjusted EPS $3.00 to $3.40 Assumes 18% ETR Capital Expenditures $30M to $35M Free Cash Flow $175 to $200M Current Increase Increase Revenue $1.260
Slide 29: Appendix
Appendix © 2020 Chart Industries, Inc. Confidential and Proprietary
Slide 30: Q3 and YTD 2020 Free Cash Flow
© 2020 Chart Industries, Inc. Confidential and Proprietary Q3 and YTD 2020 Free Cash Flow “Income attributable to Chart Industries Inc. adjusted” is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to net income in accordance with U.S. GAAP. Recon
Slide 31: Divested Cryobiological YTD Statistics In Discontinued Operations
© 2020 Chart Industries, Inc. Confidential and Proprietary Divested Cryobiological YTD Statistics In Discontinued Operations