Summary of Flowserve and Chart Industries Conference Call Industry and Companies Involved - **Companies**: Flowserve Corporation and Chart Industries - **Industry**: Industrial Process Technologies Core Points and Arguments 1. **Merger Announcement**: The merger between Chart and Flowserve is described as transformational, creating a leader in industrial process technologies with a comprehensive portfolio of flow and thermal management solutions [4][5][6] 2. **Ownership Structure**: The merger is structured as an all-stock merger of equals, with Chart shareholders owning approximately 53.5% and Flowserve shareholders owning approximately 46.5% of the combined company [7][8] 3. **Cost Synergies**: The merger is expected to drive approximately $300 million in annual cost synergies, primarily from materials and procurement savings, roofline consolidation, and organization efficiencies [7][21] 4. **Revenue Synergies**: An additional 2% growth in revenue is anticipated from commercial revenue synergies over time [21][52] 5. **Financial Profile**: The combined company is projected to have combined revenue of $800 million and $1.8 billion in cash flow over the twelve months ended March 31, 2025 [9][25] 6. **Market Opportunities**: The merger positions the companies to capitalize on macro trends such as energy intensity, energy security, and decarbonization, with a focus on high-growth end markets [10][11] 7. **Aftermarket Business**: The combined aftermarket business is expected to generate significant recurring revenue, with a global installed base of nearly 5.5 million assets, creating a $4 billion aftermarket franchise [19][61] 8. **Digital Integration**: The merger will enhance digital capabilities, allowing for better monitoring and predictive maintenance of assets, which is expected to drive further growth in the aftermarket segment [62][63] 9. **Geographic Expansion**: The merger will allow both companies to leverage each other's geographic strengths, particularly in regions where one company has a stronger presence [48][49] 10. **Cultural Integration**: Both companies emphasize a shared commitment to safety, innovation, and community, which will be integral to the combined company's culture [27][28] Important but Overlooked Content 1. **Regulatory Considerations**: The merger is expected to face minimal regulatory concerns, with no significant overlap in product offerings that could raise antitrust issues [95] 2. **LNG Market Role**: LNG is projected to account for 9% of the combined company's revenues, highlighting its importance in the overall strategy [116] 3. **Leverage and Financial Strategy**: The combined company aims for a conservative leverage ratio of 2 times net debt to adjusted EBITDA at close, with plans for future shareholder returns through dividends and share buybacks [25][121] 4. **Integration Management**: An integration management office will be established to ensure effective synergy realization post-merger [85] This summary encapsulates the key points discussed during the conference call, providing a comprehensive overview of the merger's implications for both companies and the industry at large.

Summary of Chart Industries and Flowserve Corporation Conference Call Industry and Companies Involved - **Industry**: Industrial Process Technologies - **Companies**: Chart Industries (GTLS) and Flowserve Corporation Core Points and Arguments 1. **Merger Announcement**: The merger between Chart Industries and Flowserve Corporation is described as transformational, creating a leader in industrial process technologies with a comprehensive portfolio of flow and thermal management solutions [4][5][8] 2. **Ownership Structure**: The merger is structured as an all-stock merger of equals, with Chart shareholders owning approximately 53.5% and Flowserve shareholders owning approximately 46.5% of the combined company [7] 3. **Cost Synergies**: The merger is expected to generate approximately $300 million in annual cost synergies within three years, primarily from materials and procurement savings, roofline consolidation, and organization efficiencies [22][25] 4. **Revenue Synergies**: An additional 2% growth in revenue is anticipated from commercial revenue synergies over time, leveraging the combined capabilities of both companies [22][51] 5. **Financial Profile**: The combined company will have projected revenues of $8.8 billion and combined cash flow of $1.8 billion over the twelve months ended March 31, 2025 [9][25] 6. **Market Opportunities**: The merger positions the companies to capitalize on macro trends such as increasing global energy demand, decarbonization, and the need for infrastructure repair [10][11] 7. **Aftermarket Business**: The combined aftermarket business is expected to generate significant recurring revenue, with a global installed base of nearly 5.5 million assets, creating a $4 billion aftermarket franchise [19][20] 8. **Geographic Expansion**: The merger will allow both companies to penetrate new geographies where they have complementary strengths, such as Flowserve's presence in the Middle East [11][48] 9. **Digital Integration**: The integration of digital platforms like Redraven IoT and Chart's uptime and VintSim will enhance customer experience and operational efficiency [16][61] 10. **Cultural Commitment**: Both companies emphasize a shared commitment to safety, innovation, and community, which will be foundational in the combined entity [27][28] Important but Possibly Overlooked Content 1. **Headquarters and Leadership**: The combined company will be headquartered in Dallas, Texas, with a board comprising 12 directors, six from each company [8] 2. **Regulatory Considerations**: Minimal regulatory risk is anticipated, with no significant overlap in product offerings that could raise antitrust concerns [92] 3. **Aftermarket Margins**: Flowserve's aftermarket margins are expected to be greater than 40%, which will contribute to overall margin improvement for the combined entity [66] 4. **Leverage and Financial Strategy**: The combined company aims for a conservative leverage ratio of two times net debt to adjusted EBITDA, allowing for flexibility in capital allocation, including dividends and share repurchases [25][120] 5. **LNG Market Role**: LNG is projected to account for 9% of the combined company's revenues, highlighting its importance in the overall portfolio [115] This summary encapsulates the key points discussed during the conference call, providing insights into the strategic rationale behind the merger, expected synergies, and future growth opportunities for the combined entity.

I N V E S T O R P R E S E N T A T I O N J u n e 4 , 2 0 2 5 Chart Industries and Flowserve Corporation to Combine in Merger of Equals Chart Industries + Flowserve 1 Important Disclosures Important Information about the Transaction and Where to Find It This communication may be deemed to be solicitation material in respect of the proposed merger transaction between Chart Industries, Inc. ("Chart") and Flowserve Corporation ("Flowserve"). In connection therewith, the parties intend to file relevant materials ...