Baker Hughes Company Barclays 40th Annual Energy-Power Conference

Thank you very much. Thank you very much.

Maybe just to start off, I believe, happy birthday, Dave. For those of you that don't know, Dave is celebrating today and good morning, everyone. It's great to be back at the Barclays Energy and Power Conference. I'd like to thank Dave Anderson and the entire Barclays team for the invitation and the opportunity to present to everyone today. Over the past several years, we have repositioned Baker Hughes to a world where energy and industrial markets are becoming increasingly interconnected. Those dynamics are creative, attractive opportunities across our portfolio, and we believe they provide a strong foundation for long-term growth. This morning I'd like to share how our transformation has positioned Baker Hughes to capture these opportunities, why we see significant runway for growth ahead, and how the addition of Chart further strengthens our portfolio and our ability to create long-term shareholder value.

Before we begin, I'd like to remind everyone that today's presentation includes forward-looking statements. Please refer to the disclosure on this slide for additional information. Baker Hughes sits at the center of a fundamental shift in the global economy. Energy demand is growing, power systems are becoming more complex, and the boundaries between energy infrastructure and industrial markets are increasingly converging. As a result, customers are looking for partners that can help them improve reliability, productivity, and efficiency across increasingly interconnected systems. This is where Baker Hughes has a distinct advantage. We're uniquely positioned across the full energy industrial value chain, providing multiple avenues for growth regardless of how the energy mix evolves. Our broad portfolio enables us to support customers across the life cycle of their assets, whether the priority is energy security, increasing power demand, industrial growth, or decarbonization.

Combined with Chart, we now compete across an addressable market of more than $400 billion, strengthening our ability to create value across a wide range of end markets and investment cycles. What differentiates Baker Hughes is not simply the breadth of our portfolio, but our ability to connect capabilities across the energy and industrial value chains. Across OFSE, IET, and now Chart, we support customers from molecule extraction through transportation, processing, power generation, and industrial consumption. That gives us a unique position at the intersection of energy production, infrastructure, and industrial end markets. As customers increasingly seek integrated solutions that connect upstream production, energy infrastructure, and industrial systems, Baker Hughes is exceptionally well-positioned to meet those needs. This is reflected in our business mix.

Today, approximately 60% of our revenue comes from infrastructure and industrial markets, underscoring how Baker Hughes has evolved and the broader role we play across the global energy ecosystem. Together, our capabilities create one of the industry's most integrated molecule to electron platforms and a strong foundation for sustained growth, durable cash generation, and long-term shareholder value. Over the last several years, we have transformed Baker Hughes through disciplined execution, portfolio management, and a relentless focus on operational performance. In OFSE, we have built a stronger, less cyclical franchise by increasing our exposure to production and brownfield activity. As a result, OFSE margins have improved by more than 600 basis points since 2017 and have remained resilient despite lower market activity, demonstrating the durability of the business through different market conditions. In IET, we continue to build strong momentum.

We delivered record EBITDA margins of 18.5% in 2025, and we expect margins to exceed 20% in 2026. At the same time, RPO reached a record level of more than $37 billion at the end of the second quarter. This backlog provides strong visibility, expands our installed base, and supports a growing stream of future services revenue. Together, these businesses have driven more than 600 basis points of adjusted EBITDA margin expansion since 2017 for the company, reflecting sustained progress in execution, productivity, and portfolio discipline. The key message for investors is that Baker Hughes today is fundamentally different than it was several years ago. We have consistently expanded margins, strengthened earnings durability, and demonstrated our ability to generate strong cash flows across market cycles. Looking ahead, we see a clear path to 20% adjusted EBITDA margins by 2028, excluding the impact of Chart.

Supported by strong demand across energy infrastructure and industrial markets, we remain confident in delivering more than $45 billion of IET orders through the Horizon Two period. Together, these milestones reinforce the strength of our portfolio and provide a powerful foundation for the next chapter of growth and long-term shareholder value creation. The acquisition of Chart represents the next stage in our strategic evolution, significantly expanding our exposure to attractive industrial markets while bringing complementary technologies, customer relationships, and capabilities. Chart brings a highly diversified portfolio across attractive markets, including data centers, space, LNG, industrial gases, metals and mining, and other industrial applications. It also strengthens our technology portfolio with leading products in heat transfer, cryogenic systems, industrial compression, and carbon capture.

We believe the combination strengthens both our growth profile and the quality of our earnings while creating new opportunities to deepen customer relationships, expand life cycle revenues, and deliver more differentiated solutions. Together, we are building a stronger platform for sustained growth and long-term value creation for customers and shareholders. With the acquisition now closed, we are firmly focused on execution and delivering strategic, operational, and financial benefits for the combined companies. We are moving forward with deliberate pace and discipline, focused on seamless integration, effective synergy capture, and realizing the full potential of the combination. We see three primary drivers of value creation. First, operational enhancements through deployment of the Baker Hughes business system. By applying our proven operating model, we will standardize performance management, advance value stream transformation, enhance strategy deployment, and reinforce accountability throughout the organization.

The business system has consistently driven stronger execution, productivity, margins, and cash generation across Baker Hughes. We believe it will be a significant enabler of value creation at Chart by improving operational performance and establishing a culture of continuous improvement. Second, cost synergies. As we bring the two organizations together, we see meaningful opportunities to streamline support functions, optimize our manufacturing footprint, improve procurement efficiency, and drive higher asset utilization. We have established clear initiatives, owners, and operating rhythms to convert these opportunities into measurable results. Third, and perhaps most exciting, and what makes the Chart acquisition unique are the commercial synergies. Together, Baker Hughes and Chart can offer customers a broader portfolio of technologies and a more integrated set of solutions across energy infrastructure and industrial markets.

This strengthens our ability to deepen customer relationships, increase share of wallet, and participate in a wider range of projects throughout the value chain. Customer engagement is already underway, and the early response reinforces our confidence that the combined portfolio can create meaningful growth opportunities well beyond what either company could achieve independently. As the chart on the right highlights, these three value drivers provide a clear roadmap to expand Chart's EBITDA margin from approximately 17% in the second half of 2026 to 22%-23% by the second half of 2028. Operational improvements and cost synergies are expected to drive meaningful structural margin expansion and stronger free cash flow. While commercial synergies and growth create additional opportunities through increased scale and operating leverage. We will discuss the key factors supporting Chart's updated margin outlook in more detail later in the presentation.

We have dedicated teams, established governance, and a proven operating model already in place. With clear ownership and disciplined execution, we are well-positioned to deliver on the value creation opportunity ahead of us. Let me spend a moment on operational enhancements, because this is an area where Baker Hughes has a proven and repeatable track record. At Baker Hughes, our business system provides the framework that connects strategy to execution and drives sustainable performance improvement. We intend to bring this same operating model to Chart. The journey begins with performance management. We will establish a clear KPI framework. Through visual management scorecards and structured governance, we create transparency, accountability, and a common understanding of what success looks like. From there, we move into continuous improvement.

Through disciplined daily management, structured problem-solving, and regular performance reviews, leaders and teams identify performance gaps, eliminate waste, remove barriers, and sustain improvements that compound over time. The final element is strategy deployment. Here, we connect long-term business objectives to the work occurring across functions every day. Priorities, targets, resources, and improvement initiatives are aligned so that the entire organization is working towards the same outcomes. What gives us confidence is that this is not a new playbook. We have successfully deployed the business system across Baker Hughes and have seen it consistently improve operational performance while instilling the processes, behaviors, and operating discipline that drive sustainable results. As we deploy the business system at Chart, we believe it will create a culture of accountability, transparency, and continuous improvement that enables stronger operational execution, increased productivity, improved cash performance, enhanced customer responsiveness, and sustainable margin expansion.

Turning to cost synergies, we have a clear roadmap, detailed execution plans, and a high degree of confidence in our ability to deliver. Our opportunity comes from three primary areas. The first is the SG&A optimization. This includes eliminating duplicative activities, streamlining administrative processes, consolidating systems, and leveraging shared services more effectively. The second is supply chain efficiency. Together, we have greater purchasing scale, broader supplier relationships, and additional opportunities to optimize sourcing, inventory management, and working capital. The third area is facility optimization. As we evaluate our manufacturing and services footprint, we see opportunities to improve capacity utilization and remove inefficiencies across the combined networks. We have already executed $35 million of actions to date and remain confident in our path toward approximately $325 million of annualized cost synergies by year 3. Approximately three-quarters of those benefits are expected to be captured within the Chart segment.