Chemtrade Logistics Income Fund · TSX:CHE.UN
Chemtrade Logistics Income Fund — Investor Presentation (March 2025)
46 slides from Chemtrade Logistics Income Fund's investor presentation, March 2025
Slide 1: Responsible Care: Our Commitment to Sustainability
RESPONSIBLE CARE® OUR COMMITMENT TO SUSTAINABILITY Chemtrade Logistics Income Fund (TSX: CHE.UN) MARCH 2025 Investor Presentation
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION Certain statements contained in this presentation constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward- REGARDING looking statements can be generally identified by the use of words such as “anticipate”, “continue
Slide 3: Chemtrade at a Glance
Chemtrade at a Glance Leading Industrials Chemicals Provider $2.1 Billion $1.2 Billion $430 Million - $460 Million Enterprise Value(1) Market Capitalization(2) 2025 Adjusted EBITDA(3) Guidance Geographic Split Segment Split & Key End Markets TSX: CHE.UN Historical Unit Price *LTM Q4 2024 Revenue *LT
Slide 4: Investment Highlights
TSX: CHE.UN Investment Highlights Diversified end-market exposure, with a resilient product portfolio offering both defensiveness and growth. Resilient Business Model Significant regional market share across product portfolio with several multi-year macro tailwinds. Impact to earnings from potential
Slide 5: Financial Performance 4 Year Historical & 2025 Guidance
Financial Performance 4 Year Historical & 2025 Guidance Adjusted EBITDA Historical Performance (C$ millions) ▪ EBITDA increased by $190M from 2021- $430-$460 2024 reflecting a compounding annual growth rate of 19%. ▪ Total Shareholder return during last 3 $503 $471 years of ~73%(1). $431 *2025 Guida
Slide 6: Historical Growth Drivers
Historical Growth Drivers 2021 – 2024 Adjusted EBITDA Growth Adjusted EBITDA Growth Bridge (2021 to 2024) ▪ Increased by $190M since 2021 ▪ Key Business Drivers ▪ Chlor-alkali ▪ Water ▪ Chlorate ▪ Strategic Activities ▪ Market pricing optimizations ▪ Reliability improvements ▪ Organic growth investm
Slide 7: Chemtrade Products
Chemtrade Products Product Line Key Attributes Market Attribute Relative Strength by Product Adjusted EBITDA Comparison by Products Growth Risk Shared Competitive Product Line Prospects Contracts Advantage EBITDA margin (%) Water Chemicals 60.0% Regen Acid Caustic Soda 50.0% Regen Chlorine Chlorine
Slide 8: Historical Capital Allocation
Historical Capital Allocation 2021-2024 Capital Allocation Split (2021 - 2024) Growth Capital Expenditures(1) (2021-2024) Total Growth Capital Expenditures of $151M $81 Growth Capex, $62 $176 Distributions, $241 $22 Debt Reduction and Other, $378 $11 2021 2022 2023 2024 Debt Reduction (2021 – 2024)
Slide 9: SWC Segment Looking Ahead
SWC Segment Looking Ahead Sulphuric Acid (H2SO4) Water Solutions Alum, ACH, Regen Ultrapure Merchant PACI, Ferric Gasoline production Semiconductor manufacturing, Wood pulp, industrial chemicals, car Municipal and industrial water speciality batteries, batteries, steel production, water treatment an
Slide 10: EC Segment Looking Ahead
EC Segment Looking Ahead Electrochemicals Caustic Soda (NaOH) Chlorine (Cl2) Hydrochloric Acid (HCI) Sodium Chlorate (NaCI3) Pulp & paper, soaps & detergents, Water treatment, chemical pH adjustor in water treatment, oil & Pulp & paper bleaching aluminum, oil & gas, lithium-ion processes (mainly PVC
Slide 11: Targeted Growth Key Drivers
Targeted Growth Key Drivers Key Targets For Chemtrade Overall Growth ▪ Targeted growth for EBITDA and Distributable cash per unit of 3-5% per year. ▪ On a per unit basis growth augmented by reducing units outstanding via buybacks. Caustic Soda Upside ▪ Caustic Soda continues to rebound to start 2025
Slide 12: Balance Sheet
Balance Sheet Conservative Financial Approach Strong Balance Sheet Net Debt & Leverage(1) ▪ Maintain a strong balance sheet through cycle. 12.0x Net Senior Debt to Adjusted EBITDA $1,80 $1,637 Total Net Debt to Adusted EBITDA ▪ Steady state target leverage of 2.0x - 2.5x. $1,461 Total Net Debt $1,60
Slide 13: Potential U.S. Tariff Impact
TSX: CHE.UN Potential U.S. Tariff Impact The U.S. has threatened a 25% tariff on Canadian and Mexican products being exported to the U.S., in addition to a 10% tariff on Chinese products being exported to the U.S. The situation is unprecedented and it is difficult to estimate the impact, however: Ch
Slide 14: North Vancouver Lease Renewal
North Vancouver Lease Renewal Chemtrade remains in active discussions with the Vancouver Fraser Port Authority regarding a new lease for its North Vancouver chlor-alkali facility. ▪ Chemtrade has been actively engaging with the community and the feedback received has been overwhelmingly supportive a
Slide 15: Operational Excellence Continued Focus
Operational Excellence Continued Focus Chemtrade has an organization-wide focus on Operational Excellence across five key areas. ▪ Chemtrade has succeeded in moving into the top quartile (top 25%) for employee injury rate among US chemical companies(1) Safety ▪ Delivering continuous improvements in
Slide 16: ESG Key Targets Continued Focus
ESG Key Targets Continued Focus Environmental, Social and Governance 2024 Highlights ✓ Chemtrade GHG intensity 36% below NA chemical industry average ▪ Target: below NA chemical industry average RESPONSIBLE CARE® ✓ 88% of electricity from hydroelectricity OUR COMMITMENT TO SUSTAINABILITY ▪ Target: >
Slide 17: Valuation Market Comparison
Valuation Market Comparison Recent Third-Party Precedent Transactions Water Chemicals Regen Acid ▪ Transaction: USALCO Water Treatment ▪ Transaction: Veolia (North American Chemicals Regeneration Services Business) ▪ Transaction Value: $1,450M ▪ Transaction Value: $620M ▪ LTM EV/EBITDA: 10.2x ▪ LTM
Slide 18: For more information
TSX: CHE.UN For more information: investor-relations@chemtradelogistics.com Business Overview Growth Capital Allocation Outlook Operational Excellence ESG Excellence Valuation Appendix 18
Slide 19: Appendix
Appendix Business Overview Growth Capital Allocation Outlook Operational Excellence ESG Excellence Valuation Appendix 19
Slide 20: Management Team
Management Team Scott Rook Joined Chemtrade in 2019 as COO; CEO since March 2021 President & CEO More than 28 years’ experience in the chemical industry including commercial, operational, and business leadership roles Previously Senior VP, Commercial at Ascend Performance Materials Rohit Bhardwaj Jo
Slide 21: Board of Trustees
Board of Trustees Douglas Muzyka Trustee since November 2020 Chair of the Board Corporate Director Previously Senior VP and Chief Science and Technology Officer of E.I. DuPont de Nemours Lucio Di Clemente Trustee since July 2009 Chair of the Governance and Nominating Committee Executive mentor, corp
Slide 22: Company History Adjusted EBITDA Growth and Activities
Company History Adjusted EBITDA Growth and Activities Achieved Record Revenue and EBITDA Results $430-$460* Scott Rook $900mm Appointed Added President & CEO US$860mm Chlor-Alkali Portfolio Adjusted EBITDA & Strengthened Sulphur & Water Segments Acquisitions $503 $471 $431 $283 $296 $280 $265 $221 $
Slide 23: Chemtrade's Footprint
Chemtrade’s Footprint Transcontinental Reach Sulphur & Water Chemicals • 12 facilities in Canada and 41 in the United States 2 • Strategic locations near 3 2 customers create a 1 1 barrier to entry given 2 3 transportation costs 1 3 Electrochemicals 1 • Operating facilities in 2 1 1 BRAZIL 1 Canada
Slide 24: Full Year 2024 Results
TSX: CHE.UN Full Year 2024 Results Full-year 2024 Revenue ▪ Revenue for the full-year 2024 period was $1,787.0 million, down $59.7 million or 3.2% year-over-year. Revenue (C$ millions) ▪ Excluding $40.3 million in 2023 related to the P2S5 business sold in Q4 2023 and a -0.5% $10.5 million negative i
Slide 25: Q4 2024 Results
TSX: CHE.UN Q4 2024 Results Q4 2024 Revenue ▪ Revenue for Q4 2024 was $446.5 million, up $24.5 million or 5.8% year-over-year. Revenue (C$ millions) ▪ Excluding $5.7 million in the prior year period related to the P2S5 business sold in Q4 2023, revenue increased by $30.2 million or 7.3% year-over-ye
Slide 26: Capital Allocation
TSX: CHE.UN Capital Allocation 2024 Capital Allocation (C$ millions) Chemtrade continues to focus on balancing capital allocation across three key pillars: 1) Invest in high-return, strategic growth opportunities Growth Capex ▪ Invested $81.3 million of growth capital in 2024. $81.3 Distributions ▪
Slide 27: Balance Sheet
TSX: CHE.UN Balance Sheet Net Debt / LTM Adjusted EBITDA(1) Chemtrade undertook several balance sheet initiatives during the year to further optimize the capital structure. 2.2x 2.2x 1) Completed SIB for 8.5% September 2025 Convertible 1.8x 1.9x 2.0x 1.8x 1.8x Debentures and redeemed remaining 8.5%
Slide 28: 2025 Guidance
TSX: CHE.UN 2025 Guidance 2025 Guidance: Adjusted EBITDA ▪ Chemtrade expects 2025 Adjusted EBITDA to (C$ millions) be between $430.0 million and $460.0 million. $430.0 - $460.0 ▪ 2025 will be Chemtrade’s third highest ever annual Adjusted EBITDA, if the midpoint of 2025 guidance is achieved. ▪ Confi
Slide 29: 2025 Guidance
TSX: CHE.UN 2025 Guidance 2025 2024 2023 C$ millions Guidance Actual Actual Adjusted EBITDA (1) $430.0 - 460.0 $470.8 $502.6 Maintenance Capital Expenditures (1) $100.0 - $120.0 $104.5 $104.2 Growth Capital Expenditures (1) $40.0 - $60.0 $81.3 $62.1 Lease Payments $65.0 - $75.0 $65.4 $58.3 Cash Inte
Slide 30: Macro Trends Capturing Secular Tailwinds
Macro Trends Capturing Secular Tailwinds Growing Water Treatment Chemicals Demand Growing Demand for Semiconductors US$646Bn 5% CAGR (2023 – 2033) US$12Bn 12% CAGR (2022 – 2032) Expected semiconductor Expected growth in global water 2023 North American chemical Expected growth in U.S. capital invest
Slide 31: ESG Key Targets Continued Focus
ESG Key Targets Continued Focus Chemtrade has comprehensive ESG targets and initiatives in place. Category Area of Focus Key Targets Progress in 2024 Approximately 7.9% of Scope 1 GHG emissions Reduce, offset or displace 2021 baseline direct GHG emissions emitted from sources we were either reduced,
Slide 32: Key Sensitivities: Annual Impact on Adjusted EBITDA
TSX: CHE.UN Key Sensitivities: Annual Impact on Adjusted EBITDA Caustic Soda Price ▪ Change of US$50/DMT = C$13.8 million Sodium Chlorate Price ▪ Change of CA$50/metric tonne = C$12.5 million C$/US$ exchange rate ▪ Change of 1 cent = C$3.9 million (favourable if C$ weakens) Business Overview Growth
Slide 33: Non-IFRS Financial Measures and Ratios
TSX: CHE.UN Non-IFRS Financial Measures and Ratios Non-IFRS financial measures are financial measures disclosed by an entity that (a) depict historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to their composition, exclude amounts that
Slide 34: Non-IFRS Financial Measures and Ratios
TSX: CHE.UN Non-IFRS Financial Measures and Ratios Distributable cash after maintenance capital expenditures Most directly comparable IFRS financial measure: Cash flows from operating activities Definition: Distributable cash after maintenance capital expenditures is calculated as cash flow from ope
Slide 35: Non-IFRS Financial Measures and Ratios
TSX: CHE.UN Non-IFRS Financial Measures and Ratios Payout ratio Definition: Payout ratio is calculated as Distributions declared per unit divided by Distributable cash after maintenance capital expenditures per unit. Why we use the measure and why it is useful to investors: It provides useful inform
Slide 36: Non-IFRS Financial Measures and Ratios
TSX: CHE.UN Non-IFRS Financial Measures and Ratios C$ millions, except per unit metrics and For the twelve months ended ratios Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 LTM Cash flow from operating activities $348.0 $345.3 $332.3 $ 349.5 $ 401.5 $ 407.5 $ 421.8 $ 386.4
Slide 37: Non-IFRS Financial Measures and Ratios
TSX: CHE.UN Non-IFRS Financial Measures and Ratios Net debt Most directly comparable IFRS financial measure: Total long-term debt, Debentures, lease liabilities, and long-term lease liabilities, less cash and cash equivalents Definition: Net debt is calculated as the total of long-term debt, the pri
Slide 38: Non-IFRS Financial Measures and Ratios
TSX: CHE.UN Non-IFRS Financial Measures and Ratios Growth capital expenditures Most directly comparable IFRS financial measure: Capital expenditures Definition: Growth capital expenditures are calculated as Capital expenditures less Maintenance Capital expenditures, plus Investments in a joint ventu
Slide 39: Capital Management Measures
TSX: CHE.UN Capital Management Measures Capital management measures are financial measures disclosed by an entity that (a) are intended to enable an individual to evaluate an entity’s objectives, policies and processes for managing the entity’s capital, (b) are not a component of a line item disclos
Slide 40: Total of Segments Measures
TSX: CHE.UN Total of Segments Measures Total of segments measures are financial measures disclosed by an entity that (a) are a subtotal of two or more reportable segments, (b) are not a component of a line item disclosed in the primary financial statements of the entity, (c) are disclosed in the not
Slide 41: Total of Segments Measures
TSX: CHE.UN Total of Segments Measures Adjusted EBITDA Most directly comparable IFRS financial measure: Net earnings (loss) Three months ended December 31 C$ thousands 2024 2023 Net earnings $ 10,274 $ 11,677 Add (Less): Depreciation and amortization 49,929 57,423 Net finance (income) 11,501 33,716
Slide 42: Total of Segments Measures
TSX: CHE.UN Total of Segments Measures Adjusted EBITDA Most directly comparable IFRS financial measure: Net earnings (loss) Twelve Months Ended C$ millions Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Net earnings (loss) $ 126.9 $ 128.3 $ 139.0 $ 211.7 $ 249.3 $ 225.9 $ 23
Slide 43: Total of Segments Measures
TSX: CHE.UN Total of Segments Measures Adjusted EBITDA Most directly comparable IFRS financial measure: Net earnings (loss) Adjusted EBITDA for the year ended December 31 C$ millions 2024 2023 2022 2021 2020 2019 Net earnings (loss) $ 126.9 $ 249.3 $ 109.1 $ (235.2) $ (167.5) $ (99.7) Add (Less): De
Slide 44: Total of Segments Measures
TSX: CHE.UN Total of Segments Measures Adjusted EBITDA Most directly comparable IFRS financial measure: Net earnings (loss) Adjusted EBITDA for the year ended December 31 C$ millions 2024 2023 2022 2021 2020 2019 Net earnings (loss) $ 126.9 $ 249.3 $ 109.1 $ (235.2) $ (167.5) $ (99.7) Add (Less): De
Slide 45: Supplementary Financial Measures
TSX: CHE.UN Supplementary Financial Measures Supplementary financial measures are financial measures disclosed by an entity that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of an enti
Slide 46: Supplementary Financial Measures
TSX: CHE.UN Supplementary Financial Measures Cash interest Represents interest expense related to long-term debt, interest on Debentures, pension interest expense and interest income. Cash tax Represents current income tax expense. Business Overview Growth Capital Allocation Outlook Operational Exce
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