Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Investor Presentation (May 2009)
24 slides from Chart Industries's investor presentation, May 12, 2009
Slide 1: Investment Highlights May 2009
Exhibit 99.1 Investment Highlights May 2009
Slide 2: Disclosure
Disclosure 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”, “forecast”, “outlook”, “intend”,
Slide 3: Section 1: Company Overview
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 9 manufacturin
Slide 5: E&C Segment Overview
E&C Segment Overview Selected Products 2008 Sales by Product Production Cold Boxes and LNG VIP 37% Heat Heat Exchanger Exchangers 63% Highlights Leading provider of heat exchangers and cold boxes critical to LNG, IGCC and natural gas processing markets – Separation, liquefaction and purification of
Slide 6: D&S Segment Overview
D&S Segment Overview Selected Products 2008 Sales by Product Distribution Beverage Liquid Parts, Repair CO 2 Systems LNG Terminals and and On-Site 7% Vehicle Fuel Systems Service 6% 10% VIP, Systems and Components Bulk Storage 5% Systems 41% Packaged Gas Systems 31% Storage Highlights 44% of 2008 se
Slide 7: BioMedical Segment Overview
BioMedical Segment Overview Selected Products 2008 Sales by Product End-Use Consumption Other 13% Respiratory Therapy Systems 38% Stainless Steel Freezer Biological Storage Systems 49% Highlights Portable Oxygen Strong expected growth in respiratory therapy and biomedical research, led by internatio
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 45% 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 positi
Slide 10: Energy Trends - Long-Term Growth Trends
Energy Trends - Long-Term Growth Trends Chart has extensive technology expertise across multiple energy applications Upstream Energy Conversion Transport/Storage LNG Gas to Liquids LNG Vacuum Insulated Pipe Base Load Integrated Gasification Satellite LNG Stations Combined Cycle Mid Scale Natural Gas
Slide 11: Energy Trends - Long-Term Growth Drivers
Energy Trends - Long-Term Growth Drivers Chart is well-positioned to capitalize on the return of strong global demand for energy applications Monetization of small to mid-scale natural gas reserves gaining market interest, which address Capex and project delay concerns of large base load LNG plants.
Slide 12: Industrial Gas Market – Long Term Growth Trends
Industrial Gas Market – Long Term Growth Trends Global: $60 billion North America: $23 billion On-Site/Pipeline On-Site/Pipeline 25% Packaged 29% Gas/Equipment Packaged 45% Gas/Equipment 47% Bulk Storage Systems Bulk Storage 28% Systems 26% Industrial Gas Growth is Expected to Return, Significantly
Slide 13: Leading Proprietary Technology and Designs
Leading Proprietary Technology and Designs Take advantage of leading proprietary technology and designs through new product development Extend competitive advantage in use of proprietary vacuum insulation manufacturing technology Satellite LNG Storage Brazed Aluminum Heat Exchangers Microbulk Air Co
Slide 14: 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 expenditure North America Europe Asia-Pacific
Slide 15: Section 3: Financial Overview
SECTION 3 Financial Overview
Slide 16: Strong Sales Growth
Strong Sales Growth Drivers of Growth 744 Distribution & Storage 700 666 – Expanding aftermarket business – Product line extensions in MicroBulk and Trifecta 600 313 – Global relationships with major industrial gas 537 254 companies 500 – Well positioned in areas of expected growth (Asia & Eastern E
Slide 17: Strong Track Record of Successful Execution
Strong Track Record of Successful Execution EBITDA 180 Impressive growth – 23% Sales and 51% EBITDA CAGRs 160 150 since 2003 – Flexible manufacturing platform with 140 significant international exposure 120 103 Demonstrated ability to grow the 100 88 business successfully 80 Proven ability to implem
Slide 18: Backlog has Tempered Impact of Economic Downturn
Backlog has Tempered Impact of Economic Downturn 500 475 450 399 400 350 319 300 359 266 250 234 208 200 148 150 129 100 71 50 107 126 105 50 80 20 54 28 5 6 6 9 7 0 2 2003 2004 2005 2006 2007 2008 E&C D&S BioMed 17
Slide 19: Strong First Quarter 2009 Results
Strong First Quarter 2009 Results 200 50 Year over year sales growth attributable to strong order backlog before economic downturn 190 39 40 EBITDA performance benefited from 180 improved project execution and ongoing cost 180 reduction initiatives 31 – 5% workforce reduction from 12/31/08 levels 30
Slide 20: Section 4: Conclusion
SECTION 4 Conclusion
Slide 21: Positioned on Strong and Stable Platform for Growth
Positioned on Strong and Stable Platform for Growth An investment in Chart represents a unique opportunity to capitalize on the return of strong growth in the markets we serve Flexible Manufacturing Platform – Ability to ramp up or scale back production as demand fluctuates – Necessary capacity expa
Slide 22: Appendix
APPENDIX Reconciliation of Net Income to EBITDA
Slide 23: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA ($ In Millions) Years Ended December 31, Q1 Q1 2003 2004 2005 2006 2007 2008 2008 2009 Net Income (Loss) $ (7) $ 23 $ 8 $ 27 $ 44 $ 79 $ 15 $ 20 Interest expense, net 12 5 10 25 22 18 5 4 Income tax expense 3 10 7 13 17 30 6 9 Depreciation and amortization 11 8
Slide 24: Chart
CHART 2 Innovation. Experience. Performance.”