Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Pritchard Capital Energize Conference (January 2010)
31 slides from Chart Industries's conference presentation, Jan 6, 2010
Slide 1: Slide 1
Slide 2: Slide 2
Slide 3: Slide 3
Slide 4: Slide 4
Slide 5: Innovation. Experience. Performance.
® Innovation. Experience. Performance.™
Slide 6: Pritchard Capital Energize Conference Investment Highlights January 2010
Pritchard Capital – Energize Conference Chart Industries, Inc Investment Highlights January 2010 Pritchard Capital – Energize Conference Chart Industries, Inc Investment Highlights January 2010 Exhibit 99.1
Slide 7: 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 8: Innovation. Experience. Performance.
® Innovation. Experience. Performance.”
Slide 9: Company Overview
2008 Sales by Segment 2008 Sales by Region 2008 Sales by End-User Energy industry is the largest end-user of the Company ’ s products #1 or #2 in all primary markets served Global operations with manufacturing facilities and about 2,600 employees (1) $650 million of sales, $135 million of EBITDA for
Slide 10: E&C Segment Overview
2008 Sales by Product/Region Highlights Selected Products E&C Segment Overview Heat Exchanger Cold Box Production Heat Exchangers 63% Cold Boxes and LNG VIP 37% Leading provider of heat exchangers and cold boxes critical to LNG, IGCC and natural gas processing markets – Separation, liquefaction and
Slide 11: D&S Segment Overview
2008 Sales by Product/Region Highlights Selected Products D&S Segment Overview 44% of 2008 segment sales derived from products used in energy applications Manufacturing strategically located near growing end markets and lower-cost countries – Positioned to capitalize on strong expected growth in Asi
Slide 12: BioMedical Segment Overview
2008 Sales by Product/Region Highlights Selected Products BioMedical Segment Overview Strong expected growth in oxygen respiratory therapy and biomedical research, led by international markets End markets include: – Home healthcare and nursing home – Hospitals and long-term care – Biomedical and pha
Slide 13: Chart Investment Highlights
SECTION 2 Chart Investment Highlights
Slide 14: 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 15: Other renewables:
1 Other renewables: Biomass Hydro © Nuclear Gas mon HH Coat +++ WEO-2008 total
Slide 16: Other renewables:
Other renewables: B® Biomass i Hydro Nuclear Gas Oil Hi Coal WEO-2008 total 1990
Slide 17: Energy Trends - Long-Term Growth Drivers
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. * Demand for coal grows more strongly than demand for any other energy sources. Growth in production in
Slide 18: Energy Trends - Long-Term Growth Drivers
Energy Trends - Long-Term Growth Drivers “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: Douglas-Westwood World LNG Market Report 2010-2014 - (12/3/2009) “Global gas demand is likely
Slide 19: Leading Proprietary Technology and Designs
Satellite LNG Storage MicroBulk Air Cooled Heat Exchangers Brazed Aluminum Heat Exchangers Leading Proprietary Technology and Designs Take advantage of leading proprietary technology and designs through new product development
Slide 20: Growth Initiatives
Growth Initiatives Acquisition criteria include: – Global niche engineered equipment, systems or aftermarket business – Fit with Chart value proposition including product/technology synergies – #1 or potential to become #1 within existing or adjacent growth markets – Geographic expansion or cost sav
Slide 21: Global Manufacturing and Distribution Platform
Global Manufacturing and Distribution Platform Operating leverage provides the flexibility to expand and reduce capacity as needed with minimal capital expenditure Manufacturing facilities are strategically located in lower-cost countries and near centers of demand Corporate Energy & Chemicals Distr
Slide 22: Financial Overview
SECTION 3 Financial Overview
Slide 23: Drivers of Growth
Drivers of Growth Strong Track Record of Successful Execution Distribution & Storage – Expanding aftermarket business – Global relationships with major industrial gas companies – Well positioned in areas of expected growth (Asia & Eastern Europe) Energy & Chemicals – Significant exposure to expected
Slide 24: EBITDA Margin Improvement
EBITDA Margin Improvement Year over year sales decline attributed to lower volumes across segments due to poor economic environment and unfavorable currency effects. EBITDA performance benefited from improved project execution and ongoing cost reduction initiatives – Gross Margin improvement (+144 b
Slide 25: Improving Order Trends
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 ** Quarterly Firm Orders against Monthly Global New Orders Index (PMI) Improving Order Trends Global Manufacturing New Orders Index * * Source: JP Morgan Global Manufacturing PMI ** 4 Quarter 2009 orders estimated through 12/27/2009 Fir
Slide 26: Positive Developments
Positive Developments Current economic environment has been challenging but recent developments support some optimism Order trends in D&S and BioMedical have shown signs of stabilization or improvement. – BioMedical has traditionally been counter-cyclic and order trends continue to hold up. – D&S or
Slide 27: Conclusion
SECTION 4 Conclusion Note: The Company ’ s 2010 earnings outlook will be provided during the fourth quarter and year-end 2009 conference call scheduled for February 24,
Slide 28: Positioned on Strong and Stable Platform for Growth
Positioned on Strong and Stable Platform for Growth Flexible Manufacturing Platform – Ability to ramp up or scale back production as demand fluctuates – Necessary capacity expansion/contraction is easily attainable – Proven ability to implement cost-savings measures during periods of sharp decline V
Slide 29: Appendix: Reconciliation of Net Income to EBITDA
APPENDIX Reconciliation of Net Income to EBITDA
Slide 30: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA ($ In Millions) Q1-Q3 Q1-Q3 Net Income (Loss) $ (7) $ 23 $ 8 $ 27 $ 44 $ 79 $ 57 $ 46 Interest expense, net Income tax expense Depreciation and amortization EBITDA $ 19 $ 46 $ 36 $ 88 $ 103 $ 150 $ 112 $ 95 Years Ended December 31, EBITDA represents earnings be
Slide 31: Innovation. Experience. Performance.
® Innovation. Experience. Performance.™
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