Chart Industries, Inc. · NYSE:GTLS
Chart Industries — FY2019 Earnings Presentation
17 slides from Chart Industries's earnings presentation, Feb 13, 2020
Slide 1: Chart Industries Q4 and FY 2019
Exhibit 99.2 Chart Industries Q4 and FY 2019 FEBRUARY 13, 2020
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 Focused Strategy
Our Focused Strategy Community & Employees Broadest Product Offering • Environmental, Social & Governance for Industrial Gas & Energy • Building capabilities to support • Application and Customer Expansion other strategic pillars • Cryo-pump opportunity • Branding E A • Repair & Service • Specialty
Slide 4: 2020 Guidance
2020 Guidance 2020 Guidance Not in Guide $100-$110M Revenue Organic $100M $1,300M AXC 6 Growth + Calcasieu $1.645 - $1.71B 2019 Actual Incremental Q4 ‘19 Timing Pass Includes $100M of Venture Global Months Calcasieu Pass and Full Year of AXC Big LNG • Cheniere Corpus Diluted Adjusted EPS Christi Sta
Slide 5: Q4 and Full Year 2019 Orders
Q4 and Full Year 2019 Orders Total Chart Segment Changes Records (Q4 & FY) Q4 vs. Q3 2019 D&S East +20% Chart Total # of Orders > $1M Each +20% D&S West +24% D&S West Highest Quarter in History Q4 Vs. $344 Q3 $286 2019 E&C Cryo +55% Cryogenic Equipment in India E&C FinFans (6%) Q3 FY19 Q4 FY19 FY 20
Slide 6: Two Above Market Growth Drivers
Two Above Market Growth Drivers #1 = Global Infrastructure Buildout #2 = Specialty Markets Recent Highlights Recent Highlights Liquefaction, Food & Beverage including Big LNG • Eagle LNG Jacksonville ssLNG IPSMR® • Full year 2019 record order year for and equipment LOI received hydrogen, cannabis, l
Slide 7: Meaningful Q4 2019 Orders
Meaningful Q4 2019 Orders PDH Separator System = $23M AG&P India Fueling Stations = $4M LNG by Rail Tender Cars = $21M Computer Chips = $3.1M Daxie Crystallizer = $12.2M India Space = $2.7M Caribbean ssLNG = $9M ACHX Gathering & Process = $2.7M Gasum Stations = $5M 2020 Upside Big LNG Eng = $1.2M ©
Slide 8: 2019 Versus 2018 Ending Backlog
2019 Versus 2018 Ending Backlog Total Chart E&C Cryo E&C FinFans D&S West D&S East Total Backlog +34% +104% -6% +13% +21% $762 $285 $113 $106 $147 $224 $130 $185 $568 $140 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Organic Backlog +33% +138% -34% +13% +29% $644 $
Slide 9: ESG Customer Examples
ESG Customer Examples Hydrogen Equipment for Carbon Reduction Dosing for Plastic Bottle Weight Reduction • We design and build Liquid Hydrogen storage tanks for customers • We design and build dosing equipment for customers who are who integrate them into hydrogen fuel cell vehicle fueling stations
Slide 10: Macro Trends Driving Our Business
Macro Trends Driving Our Business Energy Transition Population Growth Sustainability • Reducing annual CO2 emissions from • Global power demand to increase • Water scarcity impacts 40% of the 36.8 to 16.5 billion tons 40% by 2035 and 85% by 2050 world’s population Regulatory Drivers • Paris Agreemen
Slide 11: Big LNG Order Opportunities
Big LNG Order Opportunities 2020 Booked Orders Projects Won Other Big LNG 2020 Execution Underway Likely to FID 2020 Possible Orders Golar Gimi Cheniere CCL Stage 3 Over 12 domestic and Projects VG Calcasieu Pass Tellurian Driftwood Stage 1 international for BAHX, VG Plaquemines ACHX, and fans conte
Slide 12: Full Year 2019 Margin Expansion & Acquisition Synergies
Full Year 2019 Margin Exp. & Acq. Synergies ($M) FY 2020 Bottom YTD Q3 FY 2019 FY 2019 Q4 2019 Line Impact 2019 (Annual – Actions Taken M&A Cost (Annual) from 2019 (Annual) Ex-M&A) Syns Obtained Actions • Rooftop consolidation E&C Cryo $5.0 $0.1 $5.1 • Headcount reductions $0.0 $5.1 E&C • Reduced 4
Slide 13: Strong Free Cash Flow and Balance Sheet
Strong Free Cash Flow and Balance Sheet Pro-Forma 2019 Free Cash Flow Net Debt Ratio (1) 3.3 3.2 3.1 3.1 2.9 $125 2.9 2.9 $36 2.6 $100 2.0 AXC $75 2019 Investing Activities $134 excludes $604M in CAIRE/VRV acquisitions (largely AXC) $123 (1) $50 $98 $98 $25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 '18 '18 '18 '18 '1
Slide 14: Q4 and Full Year 2019 Adjusted EPS
Q4 and Full Year 2019 Adjusted EPS $ millions, except per share amounts Q4 2019 Q4 2018 Change v. PY FY 2019 FY 2018 Change v. PY Continuing Operations Net income attributable to Chart Industries, Inc. $12.4 $18.0 ($5.6) $46.4 $53.6 ($7.2) from continuing operations Reported EPS $ 0.34 $0.56 ($0.22)
Slide 15: Q4 2019 EPS Impacts
Q4 2019 EPS Impacts RAMP UP COSTS 1 TIMING 2 $0.10 - $0.12 E&C Cryo ($30M) Revenue $0.02 - $0.03 D&S East $0.15 - $0.20 EPS Not expected to repeat in Added to 2020 Guide Q2-Q4 2020 © 2020 Chart Industries, Inc. Confidential and Proprietary 15
Slide 16: Appendix
Appendix © 2020 Chart Industries, Inc. Confidential and Proprietary 16
Slide 17: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $ millions, except per share amounts Continuing Operations FY 2019 FY 2018 Change v. PY Income from continuing operations, $51 $69 ($18) attributable to Chart Industries, Inc. adjusted Income from continuing operations, - 2 (2) attributable to noncontrolling interests D