Chemtrade Logistics Income Fund (CHE-UN) Investor Presentation summary

Business overview and market position

• Leading industrial chemicals provider with $2.2B enterprise value and $1.3B market cap, operating in Canada, the US, and Brazil.

• Diverse product portfolio includes sulphur & water chemicals and electrochemicals, serving water treatment, refineries, mining, and semiconductors.

• Holds #1 market share in alum for drinking water and ultrapure acid for semiconductors in North America.

• Strategic facility locations near customers create high barriers to entry and cost advantages.

• Achieved a 68% total unitholder return over three years.

Financial performance and guidance

• 2024 Adjusted EBITDA guidance is $445M–$460M, following record results in 2022 and 2023.

• LTM payout ratio at 40% and distribution yield of ~6.1% as of September 2024.

• Distributable cash after maintenance capex reached $283M in 2023 and $187M LTM Q3 2024.

• Net debt reduced to $811M by September 2024, with a net debt to LTM Adjusted EBITDA ratio of 1.8x.

• 2024 guidance includes $100M–$110M maintenance capex and $70M–$80M growth capex.

Growth strategy and capital allocation

• Focused on EBITDA and distributable cash growth above GDP per year.

• Growth capex of $151M from 2021 to September 2024, targeting water chemicals and ultrapure acid expansions.

• Opportunistic M&A targets with $10M–$50M annual EBITDA, seeking strategic fit.

• Increased monthly distribution by 10% in January 2024 and initiated unit buybacks.

• Maintains a strong balance sheet with $800M+ liquidity and a 2.0x–2.5x leverage target.