Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Investor Day (June 2014)
42 slides from Chart Industries's investor day presentation, Jun 12, 2014
Slide 1: Chart Industries, Inc. Investor Day June 12, 2014
1 Chart Industries, Inc. Investor Day June 12, 2014 © 2014 Chart Industries, Inc. Exhibit 99.1
Slide 2: Disclosure
2 Disclosure © 2014 Chart Industries, Inc. Forward-Looking Statements: 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”, “belie
Slide 3: Agenda
3 Agenda © 2014 Chart Industries, Inc. Welcome, Company Overview, and Market Drivers – Sam Thomas Energy and Chemicals – Mike Durkin Distribution and Storage – Tom Carey BioMedical – Steve Shaw Investing for Future Growth – Kevin Blount Revenues, Orders, Backlog and Wrap Up – Michael Bie
Slide 4: Welcome to Chart's Investor Day
4 Welcome to Chart’s Investor Day © 2014 Chart Industries, Inc. Sam Thomas, Chairman, Chief Executive Officer and President has served as Chairman of our Board of Directors since March 2007 and has served as our Chief Executive Officer and President and as a member of our Board of Directors since Oc
Slide 5: Meet the Team
5 Meet the Team © 2014 Chart Industries, Inc. Steve Shaw, President BioMedical Tom Carey, President Distribution & Storage Michael Durkin, President Energy & Chemicals Sam Thomas, Chairman, Chief Executive Officer & President Chart Industries Kevin Blount, VP, Strategy & Business Development Chart I
Slide 6: Company Overview
6 Process Systems Company Overview © 2014 Chart Industries, Inc. BioMedical 23% Distribution & Storage 50% Energy & Chemicals 27% Respiratory Commercial / Environmental Air Cooled Heat Exchangers (ACHX) FY 2013 Sales Parts & Service LNG Packaged Gas Bulk Storage Cryobiological Brazed Aluminum Heat E
Slide 7: Industries We Serve
7 Industries We Serve © 2014 Chart Industries, Inc. Technology leader that provides high-end equipment to the energy industry, which is the largest end-user of Chart’s products One of the leading suppliers in all primary markets served Chart’s portfolio is well diversified, selling to a number o
Slide 8: Global Manufacturing
8 Global Manufacturing © 2014 Chart Industries, Inc. Operating leverage provides the flexibility to expand and reduce capacity as needed Major manufacturing locations include: North America - Georgia and Minnesota for D&S and BioMedical; also New York for BioMedical; Wisconsin, Louisiana and O
Slide 9: Natural Gas Demand Growth
9 Natural Gas Demand Growth © 2014 Chart Industries, Inc. Given these parameters, NATURAL GAS AND CHART stand to benefit Natural gas demand is expected to grow faster than coal & oil Low energy costs are expected to drive demand growth in all sectors 0 20 40 60 80 100 120 140 160 180 200 220 240 Win
Slide 10: LNG Value Chain
10 LNG Value Chain Uniquely positioned to address the entire LNG Value Chain – liquefaction, distribution, storage and end-use – Chart brings many years of experience in LNG solutions to our customers, facilitating the use of a clean-burning, safe fuel alternative to diesel into the future. Pre-tr
Slide 11: Energy and Chemicals (E&C)
11 Energy and Chemicals (E&C) © 2014 Chart Industries, Inc. Mike Durkin, President of Energy & Chemicals has served as the President since 2009. Before being appointed to the role of President, Mr. Durkin held the position of Vice President of Finance E&C and General Manager of Brazed Aluminum Heat
Slide 12: Energy & Chemicals Overview
12 Energy & Chemicals Overview © 2014 Chart Industries, Inc. Integrated Process Systems • Engineering and fabrication at two sites in Tulsa, OK • Owns the Cooler Service Co., Happy, Tri-Thermal and Esex brands • Full range of standard ACHX configurations and fin tubes • Custom solutions for units in
Slide 13: Industrial Gas Opportunity
13 Industrial Gas Opportunity © 2014 Chart Industries, Inc. Growing industrial demand for energy, emerging economies industrialization, energy independence and environmental projects means more BAHX requirements for worldwide Industrial Gas (IG) projects China is by far the highest growth market
Slide 14: Leader in Brazed Aluminum Heat Exchangers
14 Leader in Brazed Aluminum Heat Exchangers © 2014 Chart Industries, Inc. In March 2014 Chart dedicated the expansion of the La Crosse, WI facility $50 million investment >40% increase in manufacturing capacity Doubles the engineering space Addition of the world’s largest vacuum brazing fur
Slide 15: Natural Gas Processing (NGP) Opportunity
15 Natural Gas Processing (NGP) Opportunity © 2014 Chart Industries, Inc. Oil to natural gas price differential, increasing energy demand, environmental sustainability and energy independence drives global growth for natural gas Natural gas must be processed to remove heavy hydrocarbons and NGL’
Slide 16: Petrochemical Opportunity
16 Petrochemical Opportunity © 2014 Chart Industries, Inc. Ethylene/Propylene Plant Opportunities Global petrochemical demand forecast to grow consistent with global GDP US and ME growth is due to access to advantaged feedstocks (ethane and NGL’s) Asia to have largest growth – coal (coal to ch
Slide 17: LNG Opportunity
17 LNG Opportunity © 2014 Chart Industries, Inc. North America: Secular growth trend based on the use of LNG as a substitute for diesel fuel Baseload LNG: Offers sale of equipment opportunities globally and in NA for related cryogenic gas processing plants (BAHX/Cold Boxes/CIKs®) China: Contin
Slide 18: LNG Standard Plants
18 LNG Standard Plants © 2014 Chart Industries, Inc. Chart Systems strategy is to provide a vertically integrated equipment package to the small and midscale LNG market
Slide 19: Distribution and Storage (D&S)
19 Distribution and Storage (D&S) © 2014 Chart Industries, Inc. Tom Carey, President of Distribution and Storage has been with Chart Industries and predecessor companies since 1987 in positions of engineering, engineering management, operations management, product management, global engineering and
Slide 20: Distribution & Storage Overview
20 Distribution & Storage Overview © 2014 Chart Industries, Inc. Most complete provider of cryogenic distribution and storage equipment for the LNG and Industrial Gas (IG) markets Global footprint, serve our markets regionally Core competencies in cryogenic engineering, welding and vacuum tech
Slide 21: LNG Fueling Overview - China
21 LNG Fueling Overview - China © 2014 Chart Industries, Inc. Growth Drivers China LNG imports set to grow at a faster pace in 2014 than the average of the last 4 years National Standards(NS)4 Emissions regulations Marine LNG Subsidies Source: Morgan Stanley, CITI Group, Sinotrust, Company Est
Slide 22: LNG Fueling Overview - Europe
22 © 2014 Chart Industries, Inc. LNG Fueling Overview - Europe Source: Morgan Stanley, CITI Group, Company Estimates 10 3 50 9 2012 2015 Bunkering Stations Marine Tanks Europe Annual Bunkering Station and Marine Tank Demand Growth Drivers Ready supply of LNG Displacement of propane and fuel oil
Slide 23: LNG Fueling Overview - US
23 © 2014 Chart Industries, Inc. LNG Fueling Overview - US Source: Morgan Stanley, CITI Group US- LNG Available for Vehicle Fueling (MM’s of tons) US Annual LNG Station Demand US Annual LNG Vehicle Tank Demand 0.1 0.1 0.1 0.5 2015 0.6 2012 0.2 Liquefaction Peak Shave 15 50 2015 2012 750 5,000 2015 2
Slide 24: Industrial Gas Outlook
24 © 2014 Chart Industries, Inc. Industrial Gas Outlook Expand MicroBulk footprint Grow engineered systems sales in food freezing, hospital and water treatment applications in US & Europe Improve Latin America reach Develop Medical MicroBulk in U.S. Cross-pollinate engineering excellence
Slide 25: New Product Development
25 © 2014 Chart Industries, Inc. New Product Development DynaFlow3000 LNG Dispenser In-shroud Heat Exchanger Strategic Initiatives Best in class product development process Customer focus in specific markets: LNG Fueling for OTR trucking, Marine, and Rail Industrial Products, including Asept
Slide 26: BioMedical
26 © 2014 Chart Industries, Inc. BioMedical Steve Shaw, President of BioMedical has served in this position since October 2002. Mr. Shaw has held various management roles since joining Chart in 1993. Prior to joining Chart, Mr. Shaw served with TRW Inc. Cleveland, Ohio in the Automotive Aftermarket
Slide 27: BioMedical Overview
27 © 2014 Chart Industries, Inc. BioMedical Overview Leader in liquid oxygen (LOX) and cryogenic biological storage, which stems from Chart’s expertise in cryogenics technology Only supplier with both oxygen concentrator and liquid oxygen product offerings available to the end user Recently en
Slide 28: Oxygen Opportunities & Challenges
28 © 2014 Chart Industries, Inc. Oxygen Opportunities & Challenges $0 $50 $100 $150 $200 $250 Original Round 1 Round 2 Opportunity: Aging Global Population Response: Response: Leads Us To Asia Move to non-delivery 1,800 1,600 1,400 1,200 1,000 800 2,000 2,200 600 400 200 0 2010 1990 1970 1950 2050 2
Slide 29: Global Oxygen Therapy Leader
29 © 2014 Chart Industries, Inc. Global Oxygen Therapy Leader x Patient Liquid Oxygen Cylinders Transportable Stationary Concentrator Home Pressure Fill Home LOX POC x Strategic Initiatives Become respiratory leader in China Product cost reductions Low cost manufacturing Current Prod
Slide 30: Life Sciences Market Leader
30 © 2014 Chart Industries, Inc. Life Sciences Market Leader Strategic Initiatives Expand product offering outside of current niche Enter into global strategic partnership for improved sales penetration Product cost reductions Low cost manufacturing
Slide 31: On Site Generation - Environmental
31 © 2014 Chart Industries, Inc. On Site Generation - Environmental High Purity Packaged AS250 System used in Afghanistan for NATO forces VPSA System in use in Melbourne Strategic Initiatives Expand sales position, with focus on emerging markets Conversion of antiquated wastewater treatments sys
Slide 32: Product Line Expansion
32 © 2014 Chart Industries, Inc. Product Line Expansion eQuinox Vario Freezer Strategic Initiatives New product introduction every 18 months Expand our technology to continue to reduce the size and improve performance of our portable oxygen concentrators Replace compressor driven systems with
Slide 33: Investing for Future Growth
33 Investing for Future Growth © 2014 Chart Industries, Inc. Kevin Blount, Corporate Vice President, Strategy & Business Development has been with Chart Industries for over 30 years serving in a number of senior management roles within the Energy & Chemicals business. He has held positions in manufa
Slide 34: Investing for Future Growth
34 Investing for Future Growth © 2014 Chart Industries, Inc. “If you are standing still, you are going backwards”
Slide 35: Corporate Development Process Map
35 Corporate Development Process Map © 2014 Chart Industries, Inc. CD Corporate BU BU BU Bankers/Brokers Internal Sources Active Search Other S tra te g ic P la n C rit e ri a In v es tm e n t T h e m e s Strategy Council E&C D&S BioMed Q u a lif ie d (to e v a lu a te ) Evaluation Execution
Slide 36: Growth Strategy
36 Growth Strategy © 2014 Chart Industries, Inc. ENERGY & CHEMICALS DISTRIBUTION & STORAGE BIOMEDICAL • Maximize LNG Growth • Capacity Expansions • End-use Applications • Global Respiratory Growth, leader in China • Expand On Site Oxygen Generation • Product Line Expansion Chart’s Core Strategies: M
Slide 37: Areas of Continued Interest
37 Areas of Continued Interest © 2014 Chart Industries, Inc. Expand proprietary equipment portfolio NG pre-treatment Molecular sieves Rotating equipment Vacuum equipment Service/aftermarket EPC/EPCM Micro-scale LNG Industrial Gas end-use applications (e.g., wastewater treatment)
Slide 38: Revenues, Orders, Backlog and Wrap-up
38 © 2014 Chart Industries, Inc. Revenues, Orders, Backlog and Wrap-up Michael Biehl, Executive Vice President and Chief Financial Officer has served as Executive Vice President since April 2006 and has served as our Chief Financial Officer since July 2001. Until May 22, 2014, Mr. Biehl was also Cha
Slide 39: Historical Revenue Trends
39 Historical Revenue Trends © 2014 Chart Industries, Inc. 266 269 390 476 593 138 324 319 215199148 205+28% 2013 $1,177 2012 $1,014 2011 $795 2010 $555 2013 +115% $307 2012 $162 2011 $54 2010 $31 BioMed E&C D&S LNG Sales ($MM) Consolidated Sales ($MM) 26% 16% 7% 6% LNG % of Total Revenue CAGR CAGR
Slide 40: Historical Orders and Backlog
40 Historical Orders and Backlog © 2014 Chart Industries, Inc. 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 Q1 14 Q3 13 Q1 13 Q3 12 Q1 12 Q3 11 Q1 11 Q3 10 Q1 10 E&C BioMed D&S 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 Q3 10 Q3 11 Q1 11 Q1 10 Q1 13 Q1 14 Q3 13 Q1 1
Slide 41: Summary of Investment Highlights
41 © 2014 Chart Industries, Inc. Summary of Investment Highlights Attractive industry with long-term customer relationships Solid platform with worldwide presence and leading industry positions in all segments Solid organic earnings should provide substantial free cash flow and good liquidity
Slide 42: www.chartindustries.com
© 2014 Chart Industries, Inc. www.chartindustries.com