Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Corporate Update (June 2023)
16 slides from Chart Industries's corporate update, Jun 15, 2023
Slide 1: Chart Industries, Inc. Investor Update
Exhibit 99.1 Chart Industries, Inc. Investor Update JUNE 15, 2023
Slide 2: Forward Looking Statements (1/2)
Forward Looking Statements (1/2) CERTAIN STATEMENTS MADE IN THIS INVESTOR PRESENTATION ARE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING CHART’S BUSINESS PLANS, INCLUDING STATEMENTS REGA
Slide 3: Forward Looking Statements (2/2)
Forward Looking Statements (2/2) THIS PRESENTATION CONTAINS NON-GAAP FINANCIAL INFORMATION, WITH RESPECT TO THE COMPANY’S 2023 AND 2024 FULL YEAR EARNINGS OUTLOOK, THE COMPANY IS NOT ABLE TO PROVIDE A RECONCILIATION OF THE ADJUSTED EBITDA AND ADJUSTED EARNINGS PER DILUTED SHARE OR ADJUSTED FREE CASH
Slide 4: Key Updates Since June 6, 2023 (1/3)
Key Updates Since June 6, 2023 Investor Deck (1/3) All items shown are activities between June 6, 2023 and June 14, 2023 • Accelerating deleveraging • Executed definitive agreement to sell Roots™ to Ingersoll Rand (NYSE: IR) for $300 million all-cash, low teens adjusted EBITDA multiple, accelerating
Slide 5: Key Updates Since June 6, 2023 (2/3)
Key Updates Since June 6, 2023 Investor Deck (2/3) All items shown are activities between June 6, 2023 and June 14, 2023 • Gaining deeper penetration of aftermarket, service, repair opportunities • Over 8,000 of Chart legacy installed base assets are in the Howden digital system • Secured a 5-year L
Slide 6: Key Updates Since June 6, 2023 (3/3)
Key Updates Since June 6, 2023 Investor Deck (3/3) All items shown are activities between June 6, 2023 and June 14, 2023 • Additional broad-based orders booked (June 6, 2023 to June 14, 2023) • 5-year Long-Term Service Agreement (LTSA) for the manufacture, delivery, and installation of air heater el
Slide 7: Synergy Achievement (March 17, 2023 to June 14, 2023)
Synergy Achievement (March 17, 2023 to June 14, 2023) # Category Description Synergy orders Annualized Original (Revenue) cost savings annualized achieved to achieved to year-one date date target $ millions $ millions $ millions 1 Cost Sourcing $32.9 $70 2 Cost Optimization and organization 47.3 70
Slide 8: Net Leverage Profile
Net Leverage Profile (1) Debt Covenant: Net Debt/ LTM Adjusted EBITDA § Q1 2023 net leverage of 4.08X, ahead of 4.25X 6.0X forecast from November 2022 inclusive of PFC settlement payment compete in March 2023 (~$75 million) 4.5X § Pro forma for the divestiture of Roots™, pro forma net leverage ratio
Slide 9: Cash and Balance Sheet Activities
Cash and Balance Sheet Activities 1. Action completed totaling approximately $92 million in additional capacity and over $2.26 million in cost savings a) Completed repatriation of ~$20 million from China b) Sale of Renfrew, Scotland HQ building head of terms agreement signed (cash / close timing Q3
Slide 10: 2023 Consolidated Chart Industries Outlook
2023 Consolidated Chart Industries Outlook Guidance Metrics as of April 28, $ millions except per share amounts 2023 Revenue $3,660 - $3,800 (2) Adjusted EBITDA $780 - $810 Cost Synergies in EBITDA $60+ (3,4) Adjusted Free cash flow $300 - $350 Cash available for debt paydown in 2023 $275 - $325 Dil
Slide 11: Growth Acceleration in Second Half 2023
Growth Acceleration in Second Half 2023 • Six months of Howden EBITDA and FCF in H2 2023 vs. Three months and 10 days in H1 2023 • Cost Synergies ramp in H2 vs H1, on track for $175 million of annualized cost synergies first 12- months of ownership • Price/ Cost tailwind (In line with Q1 2023 commen
Slide 12: Pro Forma Adjusted EBITDA 2023 and 2024 Combined Chart + Howden
Pro Forma Adjusted EBITDA 2023 and 2024 Combined Chart + Howden • Revenue growth led by energy transition markets and backlog conversion • Implied organic volume leverage of ~30% • Favorable mix driven by energy transition verticals • Cost synergies embedded in margin expansion and SG&A improvement
Slide 13: Chart and Howden Talent Depth
Chart and Howden Talent Depth Global Commercial & Global Executive Team Finance & Accounting Engineering Combination of key Chart and Howden talent (APAC, Europe, S. 50%-50% Chart & Howden Comprised of both Howden and Africa, Middle East Presidents personnel; two Howden legacy, Chart personnel with
Slide 14: Executed to Date On-Schedule and to Targets
Executed to Date On-Schedule and to Targets # Action What we said in November 2022 As of June 14, 2023 Status 1 Financing Did not expect to close into the bridge Completed long term financing in Completed, Oversubscribed and would seek to limit amount of December 2022; No KPS preferred KPS Capital P
Slide 15: Continue to Execute On-Schedule and to Targets
Continue to Execute On-Schedule and to Targets # Action What we said in November 2022 As of June 14, 2023 Status 1 Cost synergies, year 1 $175 million $175 million Additional opportunities for upside and buffer 2 Commercial synergies, $150 million $150 million with customer inbounds Additional oppor
Slide 16: Performance Drivers
Performance Drivers Sales Growth Driven By: Margin Expansion Driven By: Deleveraging Driven By: • Full solution offerings for all • Increased full solutions mix • Operational free cash flow molecules and applications • Increased aftermarket, • EBITDA growth • Energy transition activities service and