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

Business overview and strategy

• Operates as a leading industrial chemicals provider with $2.1B enterprise value and $1.2B market capitalization, serving diverse end markets including water treatment, pulp and paper, and semiconductors.

• Maintains a resilient business model with diversified product portfolio and regional market share, supported by multi-year macro tailwinds and limited tariff exposure.

• Focuses on operational excellence, ESG leadership, and disciplined capital allocation to drive long-term unitholder value.

• Management team and board bring extensive industry experience, supporting strategic growth and governance.

• Transcontinental footprint with 53 facilities in North and South America, strategically located near customers.

Financial performance and guidance

• Achieved 2024 revenue of $1,787M, down 3.2% year-over-year, with Adjusted EBITDA of $470.8M, down 6.3% from a record 2023.

• Q4 2024 revenue rose 5.8% year-over-year to $446.5M, with Adjusted EBITDA up 28.3% to $108.6M, driven by higher pricing and improved margins.

• 2025 Adjusted EBITDA guidance is $430M–$460M, expected to be the third highest annual result, with an implied payout ratio of ~48%.

• Three-year Adjusted EBITDA CAGR of 19% and total unitholder return of ~73% over the last three years.

• Maintains strong balance sheet with net debt to Adjusted EBITDA at 1.8x and over $750M in available liquidity.

Growth drivers and capital allocation

• Key growth drivers include market pricing optimization, reliability improvements, and organic investments, with divestitures used to reduce debt.

• Water chemicals and ultrapure acid offer compelling organic growth opportunities, supported by secular demand in water treatment and semiconductors.

• 2025 growth capex planned at $40M–$60M, targeting 3–5% annual growth in EBITDA and distributable cash per unit.

• Strategic M&A targets businesses with $10M–$50M annual EBITDA, focusing on fit and growth leverage.

• Capital allocation balanced across growth investments, distributions (6.6% yield), and unit buybacks, with distributions increased in 2024 and 2025.