Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Investor Presentation (June 2019)
27 slides from Chart Industries's investor presentation, Jun 18, 2019
Slide 1: Chart Industries, Inc. Investor Update June 2019
Chart Industries, Inc. Investor Update June 2019 Navy blue = 157.195.53 Light blue = 51.163.221 Green = 157.195.53 Orange = 253.164.30 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Navy blue = 157.195.53 Light blue = 51.163.221 Green = 157.195.53 Orange = 253.164.30 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
Slide 3: Chart at a Glance
Leading diversified global manufacturer of highly-engineered equipment, gas storage solutions and value-add services used in the industrial gas and energy industries Equipment and systems primarily used to cool gases, often to cryogenic liquid temperatures, and transport and store them Over 4,600 gl
Slide 4: Energy & Chemicals Overview
Energy and Chemicals Sales and Gross Profit Trends ($mm) Energy and Chemicals Sales and Gross Profit Trends ($mm) LTM 1Q19 End-Market Exposure Overview Supplies mission critical engineered equipment and systems used in the separation, liquefaction, and purification of hydrocarbon and industrial gase
Slide 5: Distribution & Storage Overview
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 LNG applicati
Slide 6: Chart's Defined Growth Strategy
Navy blue = 157.195.53 Light blue = 51.163.221 Green = 157.195.53 Orange = 253.164.30 Chart’s Defined Growth Strategy Take Advantage of Favorable Market Trends Deliver Profitable Growth Through Strategic Initiatives Achieve Financial Targets Market Dynamics Chart Supply / demand for LNG needs in 202
Slide 7: Staying Focused on Our Strategy
Staying Focused on Our Strategy Build upon our core competency of cryogenic engineering and product expertise in our industrial gas and energy applications Acquisition of Hudson Products Acquisition of Skaff Resegmentation and Leadership Changes Acquisition of VRV Sale of CAIRE Medical September 201
Slide 8: Expanding Service & Repair Footprint
Expanding Service & Repair Footprint Current Chart Service Locations D&S Canton Current Location and Regional VCT Vogel Exploration, Production & Pipeline Processing/ Liquefaction Treatment Transportation Storage Lifecycle Services Value Proposition/ Application Re- gasification Direct coverage in t
Slide 9: VRV Company Overview
VRV Company Overview Energy & Petrochemicals Cryogenics Hydro-treating / hydrocracking Alkylation equipment Styrene PE / HDPE / LDPE Elastomer Ammonia Methanol Urea Polysilicon Bulk storage Engineered-to-order Vaporizers Trailers and transport ISO containers Microbulk LN2 Dewars LOX therapy equipmen
Slide 10: Chart's Global Operations
Chart’s Global Operations Europe D&S West D&S East D&S East Asia-Pacific Americas Corporate Headquarters Ball Ground, GA Sites shown are Chart’s operations including those of our recent acquisitions. Global satellite sales offices are not shown. E&C E&C Navy blue = 157.195.53 Light blue = 51.163.221
Slide 11: Overview of Harsco's AXC Business
Overview of Harsco’s AXC Business Revenue Key Products Key Applications Upstream Midstream Downstream Aftermarket Model EH Model F Model EH Model Z Model H Model Z Source: Harsco AXC Management Focused on Upstream and Midstream Across the Lower 48 States ~$20mm of 2018 Revenue ~$10mm of 2018 Revenue
Slide 12: Overview of AXC Deal Terms and Synergies
Overview of AXC Deal Terms and Synergies Transaction Specifics $592mm purchase price Strong free cash flow generation Expected close July 1, 2019, subject to customary closing conditions Continued Balance Sheet Strength Transaction to be funded with proposed credit facilities and proceeds from follo
Slide 13: Products across E&C and D&S 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 14: How We Play Across the Gas-to-Liquid Production Cycle
Navy blue = 32.64.110 Light blue = 51.163.221 Green = 157.195.53 Orange = 253.164.30 How We Play Across the Gas-to-Liquid Production Cycle LNG Liquefaction 1 LNG Bunkering and Receiving Terminals 2 Air Cooled Heat Exchangers 3 4 Cryogenic Storage Vessels and Mobile Cryogenic Distribution LNG Vehicle
Slide 15: Chart is Benefitting From Industry Tailwinds
Navy blue = 32.64.110 Light blue = 51.163.221 Green = 157.195.53 Orange = 253.164.30 Chart is Benefitting From Industry Tailwinds Natural Gas Tailwinds Drivers for Chart’s Expected Growth Source: US Energy Information Administration, ADI Analytics, McKinsey, management Economic growth of countries w
Slide 16: Where We Play in LNG
Navy blue = 32.64.110 Light blue = 51.163.221 Green = 157.195.53 Orange = 253.164.30 Where We Play in LNG *Source: Scotia Howard Weil Chart’s IPSMR®+ process provides as much as 8% increased efficiency over IPSMR® Requires approximately 25% less plot space than conventional pre-cooled liquefaction t
Slide 17: LNG Projects in the Market
2019 Year to Date FERC Approvals Pre-filing Delta LNG Draft EIS Jordan Cove Final EIS Eagle Driftwood Port Arthur Texas LNG Plaquemines Annova LNG Rio Grande Gulf LNG Approval Order Calcasieu Pass Driftwood Port Arthur Freeport Project Location Developer Capacity FID Received Subtotal – FID received
Slide 18: Large LNG project opportunities
Includes Hudson Products content where applicable Does not include full list of project opportunities Opportunities represent possible large projects based on current status of discussions with customers. Ultimate realization of these projects depends upon, among other things status of project and o
Slide 19: Specialty Markets
Specialty Markets Up to 24 Extractors are able to be supplied by a CO2 Trifecta tied to our current CO2 Bulk Tanks Overview Our Products Food & Beverage Use of CO2 in grow houses Sub and super-critical CO2 in extraction Nitrogen dosing for packaging CO2 supply for extractor applications require pres
Slide 20: Specialty Markets (continued)
Specialty Markets (continued) Overview Our Products Lasers Four key uses Standard industrial applications such as fuel cell powered zero emissions trucks Liquefaction storage at H2 production sites H2 vehicle fueling stations H2 mobile equipment for delivery and hauling California opportunity driven
Slide 21: M&A: A Way to Accelerate Growth
Acquisition Criteria: Strong level of strategic fit High degree of leveragability (specific and attainable synergies) Proven growth and profitability Reasonable price expectations Management bench strength Ownership that’s willing to assist in the transition M&A: A Way to Accelerate Growth Prioritiz
Slide 22: 2019 Updated Guidance, with AXC
2019 Updated Guidance, with AXC Prior Full Year 2019 (Pre Harsco AXC) Sales $1.29B - $1.34B Inclusive of 2019 portion of Calcasieu Pass and Golar Gimi Adjusted EPS (1) $2.70 - $3.05 Assumes 22-23% full year tax rate Capital Expenditures $35M - $40M Full Year 2019 (Post Harsco AXC) Sales $1.41B - $1.
Slide 23: 2020 Outlook
2020 Outlook Ref # Description Revenue ($M) Adjusted EPS(1) 1 2020 Base Outlook as of June 2018 $1,380 - $1,400 $3.60 - $3.70 2 Calcasieu Pass, Gimi, ACHX for Bechtel 125 0.90 - 1.00 3 Additional restructuring completed 0.15 - 0.20 4 +VRV, - CAIRE, +/- Other (45) – (25) (0.15) – (0.13) 5 Harsco AXC
Slide 24: Chart Industries Financial Principles
Chart Industries Financial Principles 1. Maximize Top Line Growth & Operating Income 2. Expand Operating Margin 3. Maintain Balance Sheet Strength & Flexibility 4. Deliver Disciplined Capital Allocation Strategy 5. Achieve Financial Targets Direct shareholder return (when / if appropriate) Organic g
Slide 25: Appendix
Appendix
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($mm) 1Q18 2018 1Q19 LTM 3/31/19 Net income $6 $90 $1 $85 Less income from discontinued operations (2) (34) 0 (33) Net income from continuing operations 5 56 1 52 Provision for income taxes (benefit) 2 13 (2) 10 Interest expense (income), net 6 21 5 20 Other non-opera
Slide 27: rm ota ei ney Innovation. Experience. Performance.»
rm ota ei ney Innovation. Experience. Performance.»