 Exhibit 99.1
CHART
INDUSTRIES,
INC.
PIPER
JAFFRAY
INVESTOR
MEETINGS
DECEMBER
5 AND
6, 2012 |
 Disclosure
1
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”, “believe”,
“estimate”, “project”, “forecast”, “outlook”,
“intend”, “future”, “potential” or “continue”, and other similar expressions are intended to
identify forward-looking statements. All of these forward-looking statements are based
on estimates and assumptions by our management as of the date of this presentation that,
although we believe to be reasonable, are inherently uncertain. Forward- looking statements
involve risks and uncertainties that could cause the Company’s actual results or circumstances to differ
materially from those expressed or implied by forward-looking statements. These risks and
uncertainties include, among others, the following: the cyclicality of the markets that the
Company serves; a delay, significant reduction in or loss of purchases by large customers;
fluctuations in energy prices; changes in government energy policy or failure of expected changes in policy to
materialize; the potential for negative developments in the natural gas industry related to hydraulic
fracturing; competition; economic downturns and deteriorating financial conditions; our ability
to manage our fixed-price contract exposure; our reliance on key suppliers and potential
supplier failures or defects; the modification or cancellation of orders in our backlog; the Company’s ability to
successfully manage its costs and growth, including its ability to successfully manage operational
expansions and the challenges associated with efforts to acquire and integrate new product
lines or businesses, including the ability to successfully integrate AirSep’s business and
achieve anticipated revenue, earnings and accretion related to AirSep; the Company’s ability to obtain third-
party approvals necessary for planned operational expansions; changes in government healthcare
regulations and reimbursement policies; general economic, political, business and market risks
associated with the Company’s global operations and transactions; fluctuations in foreign
currency exchange and interest rates; the financial distress of third parties; the loss of key employees and
deterioration of employee or labor relations; the pricing and availability of raw materials; the
regulation of our products by the U.S. Food & Drug Administration and other governmental
authorities; potential future impairment of the Company’s significant goodwill and other
intangibles; the cost of compliance with environmental, health and safety laws; additional liabilities related to taxes; the
impact of severe weather; litigation and disputes involving the Company, including product liability,
contract, warranty, employment and environmental claims; technological security threats; risks
associated with our indebtedness, leverage, debt service and liquidity; and volatility and
fluctuations in the price of the Company’s stock. For a discussion of these and additional risks that could
cause actual results to differ from those described in the forward-looking statements, see
disclosure under Item 1A. “Risk Factors” in the Company’s most recent Annual
Report on Form 10-K and other recent filings with the Securities and Exchange Commission,
which should be reviewed carefully. Please consider the Company’s forward-looking
statements in light of these risks. Any forward- looking statement speaks only as of its
date. We undertake no obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise, except as required by law.
|
 GTLS: GAS TO LIQUID SYSTEMS
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
Global footprint for our operations on four continents with approximately 4,600
employees Worldwide earnings with approximately 60% of sales derived from
outside the U.S. Company Overview
Chart Industries is a leading provider of highly engineered cryogenic equipment
for the hydrocarbon, industrial gas, and biomedical markets
Asia
21%
U.S.
42%
Americas
(Non-US)
7%
RoW
9%
Europe
21%
LTM June 2012 Sales by Segment
Energy
48%
BioMedical
22%
General
Industrial
30%
LTM June 2012 Sales by Region
LTM June 2012 Sales by End-User
Energy &
Chemicals
29%
Distribution
& Storage
49%
BioMedical
22%
2 |
 GTLS: GAS TO LIQUID SYSTEMS
Energy & Chemicals (E&C) Segment Overview
Heat
Exchanger
Cold
Box
Production
Brazed Aluminium
Heat Exchangers
45%
Cold Boxes and
LNG VIP
29%
LTM June 2012 Sales by Product / Region
Highlights
Technology
leader
–
providing
heat
exchangers
and
cold
boxes critical to LNG, Olefin petrochemicals, natural gas
processing and industrial gas markets
–
Separation, liquefaction and purification of hydrocarbon and
industrial gases
Market
leader
–
leading
industry
positions
worldwide
Manufacturing
leader
–
one
of
three
global
suppliers
of
mission-critical LNG and LNG liquefaction equipment
Selected Products
Americas
(Non-US)
3%
Middle East &
RoW
27%
Asia
25%
U.S.
44%
Europe
1%
3
Air Cooled Heat
Exchangers
26% |
 GTLS: GAS TO LIQUID SYSTEMS
Distribution & Storage (D&S) Segment Overview
LTM
June
2012
Sales
by
Product
/
Region
Highlights
Balanced
customer
base
–
46%
of
segment
sales
derived
from products used in energy applications
Strategic
footprint
–
manufacturing
located
near
growing
end
markets and lower-cost countries
–
Positioned to capitalize on strong expected growth in Asia and
North America
–
Continued investment in key global manufacturing facilities
Bulk
MicroBulk
Distribution
Storage
Selected
Products
Satellite
LNG Storage
Bulk Storage
Systems
34%
Packaged Gas
Systems
26%
VIP, Systems
and Components
9%
Parts, Repair and On-
Site Service
9%
Beverage Liquid
CO
Systems
6%
LNG Terminals
and Vehicle Fuel
Systems 16%
Americas
(Non-US)
10%
RoW
2%
Asia
22%
U.S.
44%
Europe
22%
4
2 |
 GTLS: GAS TO LIQUID
SYSTEMS BioMedical Segment Overview
LTM June 2012 Sales by Product / Region
Highlights
Increase in oxygen respiratory therapy and biomedical
research, led by international markets, expected
End markets include:
–
Home healthcare and nursing homes
–
Hospitals and long-term care
–
Biomedical and pharmaceutical research
–
Animal breeding
Portable Oxygen
Lab Storage
Stainless Steel Freezer
End-Use Consumption
Liquid Oxygen
(LOX) Therapy
Systems
51%
Biological
Storage
Systems
33%
Selected Products
Americas
(Non-US)
4%
U.S.
37%
Europe
46%
Asia
12%
RoW
1%
5
Non-LOX
Respiratory
Therapy Systems
16% |
 GTLS: GAS TO LIQUID
SYSTEMS Global Manufacturing and Distribution Platform
Major manufacturing locations include:
China,
Changzhou (D&S and E&C) and Chengdu (BioMedical)
Czech
Republic,
Decin
(D&S)
Georgia,
Canton, Minnesota, New
Prague/Owatonna and New York, Buffalo
(D&S and BioMedical)
Wisconsin,
La
Crosse,
Louisiana,
New
Iberia
and
Oklahoma,
Tulsa
(E&C)
Expansion of facilities in China, Louisiana and Minnesota is currently in process
Manufacturing facilities are strategically located in lower-cost countries
and near centers of demand
Corporate
Energy & Chemicals
Distribution & Storage
BioMedical
Asia-Pacific
North America
6
Europe
Operating leverage provides the flexibility to expand and reduce capacity as needed |
 GTLS: GAS TO LIQUID SYSTEMS
BioMedical
•Aging demographics
•
Product expansion
•
Increasing biological
research
Growth Opportunities
7
D&S
•Global LNG opportunity
•
Strong relationships with
Industrial Gas customers
E&C
•Global base load LNG
projects
•
Growth in natural gas
processing
•
Emerging market
opportunities |
 GTLS: GAS TO LIQUID SYSTEMS
Global Appetite For Energy
8
Source: ExxonMobil 2012 –
The Outlook for Energy, A View to 2040
Natural
gas
expansion
–
Natural
gas
demand
is
expected
to
continue
to
grow
at
a
pace
faster than coal and oil, and will be heavily weighted towards emerging economies,
which is expected to drive demand for Chart’s products
|
 GTLS: GAS TO LIQUID
SYSTEMS Natural Gas Expected To Grow Globally
9
Source:
ExxonMobil
2012
–
The
Outlook
for
Energy,
A
View
to
2040
Efforts to reduce emissions will help
gas become the world’s #2 fuel
overtaking coal
Many applications are suited to natural
gas hence it can displace oil, coal and
LPG
By 2040 it is estimated that 15% of
global gas demand will be met by LNG
Shale gas and coal mine methane are
examples of unconventional gas
production that is forecast to account
for 30% of total gas production by
2040 |
 GTLS: GAS TO LIQUID SYSTEMS
Chart provides a broad offering of products and solutions for the full LNG value
chain: LNG liquefiers, heavy duty vehicles and marine applications
LNG Value Chain Opportunities
10
transportation equipment, terminal storage equipment and vehicle tanks for both on-road and
off-road |
 GTLS: GAS TO LIQUID SYSTEMS
LNG Storage, Transportation & Delivery
11 |
 GTLS: GAS TO LIQUID SYSTEMS
LNG Fueling
12 |
 ¹Included in
2005 are non-recurring costs of $26.5 million for the acquisition of Chart Industries by
First Reserve During last growth cycle Company leveraged its flexible
manufacturing platform resulting in operating income
growth that outpaced sales
Flexible cost structure and good execution allowed for
aggressive response to economic downturn resulting in
higher operating income level than last cycle low point
13
Similar or higher growth, leveraged by
acquisitions, expected to occur again during the
current growth cycle
The return of large contract orders and the
improvement in base order levels have
confirmed a new growth cycle
1
0
20
40
60
80
100
120
140
160
0
100
200
300
400
500
600
700
800
900
1000
2004
2005
2006
2007
2008
2009
2010
2011
LTM
Sep
2012
Sales
Operating Income
Strong
Track
Record
of
Successful
Execution
0
50
100
150
200
250
300
350
400
450
Q1
20102010
Q2
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
20112011
Q4
Q1
2012
Q2
2012
Q3
2012
Large Contract Orders
Base Orders
GTLS: GAS TO LIQUID SYSTEMS
Last Growth
Cycle CAGR
(2004-2008)
Sales 25%
Oper. Inc. 38% |
 GTLS: GAS TO LIQUID SYSTEMS
Quarter-end Backlog ($MM)
14
Quarterly Orders ($MM)
0
100
200
300
400
500
600
700
Q3
2009
Q1
2009
Q2
2009
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q4
2009
Q1
2010
Q2
2010
E&C
D&S
BioMed
0
100
200
300
400
500
600
700
Q1
2012
Q4
2011
Q3
2011
Q2
2011
Q1
2011
Q4
2010
Q3
2010
Q2
2010
Q1
2010
Q4
2009
Q3
2009
Q2
2009
Q1
2009
D&S
E&C
BioMed
Q2
2012
Q2
2012
Q3
2012
Q3
2012
Historical Orders and Backlog |
 Summary of Investment Highlights
15
Flexible / Low Cost Capital Structure
Strong Balance Sheet
Positioned for Significant Growth
Very Stable Business Model
•
Exploit LNG and NG growth
•
Opportunities with global
infrastructure build-out
•
New product development and
innovation
•
Expanded new business and
inorganic pipeline
•
7 yr. $250 million convertible notes
-
2% cash interest cost
•
$300 million revolving credit facility,
providing significant liquidity
•
Strong organic earnings should
provide substantial free cash flow
and liquidity
•
Permit continued accretive organic
and inorganic growth
•
Attractive industry with long-term
customer relationships
•
Solid platform with worldwide
presence and leading industry
positions in all segments
Chart continues to represent a unique investment opportunity to capitalize on global
energy demand, growth in natural gas and LNG use, and a growing biomedical business
GTLS: GAS TO LIQUID SYSTEMS |