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8-K - 8-K - CHART INDUSTRIES INC | gtls-2017731x8kinvestorpre.htm |
© 2017 Chart Industries, Inc. Confidential and Proprietary
Chart Industries, Inc.
Investor Presentation
Exhibit 99.1
© 2017 Chart Industries, Inc. Confidential and Proprietary 2
Disclosure
Forward-Looking Statements: This presentation contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs
and expectations of management of Chart Industries, Inc. (“Chart”) and are subject to significant risks and
uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that
could cause Chart’s actual results to differ materially from those described in the forward-looking
statements include those found in Chart’s Annual Report on Form 10-K for the year ended December 31,
2016, which has been filed with the Securities and Exchange Commission and is available on Chart’s
website (http://www.snl.com/IRW/CorporateProfile/4295886) and on the Securities and Exchange
Commission’s website (www.sec.gov), as well as risks and uncertainties related to the closing of the
acquisition of Hudson and subsequent integration of Hudson’s business with Chart’s. Chart does not
undertake to update the forward-looking statements to reflect the impact of circumstances or events that
may arise after the date of the forward-looking statements.
© 2017 Chart Industries, Inc. Confidential and Proprietary 3
Unique Business Portfolio
Distribution & Storage
(“D&S”)
BioMedical
Energy & Chemicals
(“E&C”)
Energy
Industrial
Healthcare
Life Sciences
In
d
u
st
rie
s
S
e
rv
e
d
FY
2016
Sales
$154.2M $497.1M $207.8M
© 2017 Chart Industries, Inc. Confidential and Proprietary 4
Driven By Technology
Chart is a recognized global brand for the design and manufacture of highly engineered
cryogenic equipment used from beginning to end in the liquid gas supply chain.
You may never use the products we make, but everyone uses the products we make possible.
Innovation
Experience
Performance We fulfill expectations with proven solutions to
meet customer needs.
Customers rely on our knowledge and products
because we are experts in our fields.
Core competencies in cryogenics, gas processing
and low temperature storage.
© 2017 Chart Industries, Inc. Confidential and Proprietary 5
Corporate Energy & Chemicals Distribution & Storage BioMedical
North America
Strategically Located Operations
Geographic diversification providing competitive advantage
Europe Asia - Pacific
© 2017 Chart Industries, Inc. Confidential and Proprietary 6
Mission Critical Equipment Provider
Supplier of Brazed Aluminum Heat Exchangers (BAHX), Air Cooled Heat
Exchangers (ACHX) and Cold Boxes
Provider of integrated systems and aftermarket services for gas processing,
LNG and petrochemical applications
Technology leader for over 50 years
Highly engineered equipment and systems used in the separation, liquefaction and purification of
hydrocarbon and industrial gases for natural gas processing, LNG and industrial gas applications
Energy & Chemicals
© 2017 Chart Industries, Inc. Confidential and Proprietary 7
$123M
Backlog at 6/30/17
51%
16%
23%
10%
7%
25%
68%
Industry
Serving Energy Markets Globally
18%
of Total Chart Sales
17%
Gross Margin
Region
LNG
Industrial
Gas
Natural Gas
Processing/
Petrochemical
United
States
Asia
ROW
Energy & Chemicals
E&C FY 2016 Sales of $154.2M 1st Half 2017 Highlights
Middle
East
© 2017 Chart Industries, Inc. Confidential and Proprietary 8
Leading Cryogenic Equipment Provider
Designer, manufacturer and service provider of cryogenic solutions for the storage and
delivery of cryogenic liquids used in industrial gas and LNG applications
Complete portfolio of cryogenic distribution and storage equipment
Leading innovator in cryogenic packaged gas and MicroBulk systems
Over 20 years of experience in LNG applications
Distribution & Storage
© 2017 Chart Industries, Inc. Confidential and Proprietary 9
Diversified Product Portfolio
57%
of Total Chart Sales
$225M
Backlog at 6/30/17
59%
22%
7%
5%
7%
53%
18%
22%
7%
D&S FY 2016 Sales of $497.1M
26%
Gross Margin
LNG
Manufacturing/
Fabrication
Asia
Europe
ROW
United
States
Industry Region
Food/
Beverage
Electronics
Healthcare
1st Half 2017 Highlights
Distribution & Storage
© 2017 Chart Industries, Inc. Confidential and Proprietary 10
Innovative Solution Provider
Healthcare, life science and environmental product lines built around our core
competencies in cryogenics and gas processing, but with a focus on the users of
cryogenic liquids and gases
End to end provider of respiratory therapy equipment
Set the standard for storage of biological materials at low temperatures
Reliable, high quality solutions for environmental market applications
BioMedical
© 2017 Chart Industries, Inc. Confidential and Proprietary 11
Serving Growing Global End Markets
25%
of Total Chart Sales
57%
34%
9%
41%
17%
34%
8%
BioMed FY 2016 Sales of $207.8M
$19M
Backlog at 6/30/17
35%
Gross Margin
Asia
Europe
ROW
United
States
Environmental
Life
Sciences
Healthcare
Industry Region
1st Half 2017 Highlights
BioMedical
© 2017 Chart Industries, Inc. Confidential and Proprietary 12
$204.1
$238.2
1Q 2017 2Q 2017
$209.7
$252.6
1Q 2017 2Q 2017
2Q 2017 Update
Orders Sales
20.5%
Increase
Orders increased sequentially (versus prior quarter) in every segment in both 1Q
and 2Q 2017
Revenues in all three segments grew sequentially from 1Q 2017
Backlog is $367.2M, up from $348.6M in 1Q 2017
Gross Margin was $63.2M (26.5% of revenue) compared to $55.7M (27.3% of
revenue) in 1Q 2017
($USD Million)
16.7%
Increase
© 2017 Chart Industries, Inc. Confidential and Proprietary
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Hudson Products Transaction Summary
13
Hudson
Products
Description
Acquisition of Hudson Products from Riverstone Holdings LLC
− Leading producer of air-cooled heat exchangers (“ACHEs”) and axial
flow cooling fans (“Fans”)
− 2017E revenue of ~$205M; EBITDA margins anticipated to exceed
20%
Transaction
Consideration
$410 million
Expected
Financial Impact
EPS accretive
Accretive to EBITDA margins
Meaningful cost synergies
Closing
Expected closing in 3Q 2017 following successful regulatory
approval clearance
Funding
Transaction funded using:
− Cash on hand (~40%)
− Existing $450M credit facility (~60%)
Pro forma leverage below 3.0x and access to further liquidity post closing
© 2017 Chart Industries, Inc. Confidential and Proprietary
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14
ACHEs
62%
Fans
38%
Global Leader in Heat Transfer Solutions
Adds highly complementary Fans
business
Strengthens aftermarket
presence
Consistent with core strategy to
enhance Air Cooled Heat
Exchanger (ACHE) business
Accretive to growth, margins and
EPS
Significant cost synergies
Efficient use of Chart’s favorable
balance sheet position
Product Split
Refining
20%
LNG
22%
Oil & Gas
19%
Power
10%
Industrial /
Other /
HVAC
23%
Chemical
6%
OEM
63%
End Market Split Aftermarket Split
Aftermarket
37%
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Enhances Position in Key E&C Business
15
Key
Products
Current Chart E&C Pro Forma
ACHEs
Brazed Aluminum
Heat Exchangers
Integrated Process
Systems
Axial Flow Fans
End Market Mix
Natural Gas Industrial Gas
LNG
Natural Gas Industrial Gas LNG
Power HVAC Refining
Oil & Gas Petrochemical
ACHEs
Brazed Aluminum
Heat Exchangers
Integrated Process
Systems
Expands Industrial Gas Offerings
Maximizes LNG Opportunity
© 2017 Chart Industries, Inc. Confidential and Proprietary 16
Profitable Growth Focus
Reduced global headcount by one-third since 2014
Continue facility consolidation efforts to create further operating
efficiencies and leverage support functions across the business
Focus on operational excellence and strategic goals for long-
term growth when market returns
Invest in additional capacity at our brazed aluminum heat
exchanger facility
Pursue acquisition targets in our core technologies and
adjacencies
© 2017 Chart Industries, Inc. Confidential and Proprietary 17
$234M
Cash at 6/30/2017
$450M
Revolving Credit
Facility
Well Positioned For Continued Growth
2.64x
Current Ratio*
Significant Liquidity Solid Balance Sheet
25%
Debt / Capital %**
** Total Debt (ST + LT Debt) / Total Capital (Common Equity + Noncontrolling Interests + Total Debt) as of 6/30/2017
* Total Current Assets / Total Current Liabilities as of 6/30/2017
Future Growth
© 2017 Chart Industries, Inc. Confidential and Proprietary 18
Why Invest In Chart?
Stable Industrial Gas
business
Growing BioMedical
opportunities
Long-term growth
opportunities through
build out of LNG
Selling to a wide range of
global industries
Well Diversified
Business
Proven Track Record
Investing for
Continued Growth
Strategic goals to
expand current platform
and increase profitability
Pursuing organic and
inorganic growth
opportunities
Market leadership
through quality and
innovation
Flexible cost structure to
accommodate cyclic
portions of the business
Strong cash flow
generation
Conclusion
© 2017 Chart Industries, Inc. Confidential and Proprietary
www.ChartIndustries.com
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