Chemtrade Logistics Income Fund · TSX:CHE.UN

Chemtrade Logistics Income Fund — Corporate Update (January 2020)

12 slides from Chemtrade Logistics Income Fund's corporate update, January 2020

  1. Slide 1: Business Update January 2020

    20 20 JANUARY 2020 BUSINESS UPDATE 1

  2. Slide 2: Caution Regarding Forward-Looking Statements

    Certain statements contained in this presentation constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward- looking statements can be generally identified by the use of words such as “anticipate”, “continue”, “estimate”, “ex

  3. Slide 3: 4 Pronged Strategy

    4 PRONGED STRATEGY 1 Growth Increased size, scale and diversity of earnings 2 Business Model Mitigates Commodity Risks 3 Operational Excellence Ensures sustainable earnings through improved operations, assets and people 4 Financial Prudence Maintain financial flexibility & balance sheet strength wit

  4. Slide 4: Business Model Fit

    BUSINESS MODEL FIT SULPHUR PRODUCTS WATER SOLUTIONS ELECTROCHEMICALS (EC) AND PERFORMANCE AND SPECIALTY CHEMICALS (SPPC) CHEMICALS (WSSC) Wide diversity of sources Three sources Approx 60% of revenue of earnings of earnings: based on risk shared contracts - NA sodium chlorate Includes specialty - SA

  5. Slide 5: 2020 Guidance

    2020 GUIDANCE  Adjusted EBITDA $300MM - $350MM  2019 Guidance was $335MM - $375MM  Major differences from 2019:  Lower caustic and HCL pricing  Vancouver biennial turnaround  Major turnaround of material refinery customer 5

  6. Slide 6: 2020 Guidance: Key Assumptions

    2020 GUIDANCE KEY ASSUMPTIONS  Key assumptions – Electrochemicals (EC) Segment  North American MECU production volume of approximately 190KT  2020 average IHS NE Asia Caustic price index being US$15 per tonne lower than the 2019 average; and,  North American production volume of sodium chlorate

  7. Slide 7: 2020 Guidance

    2020 GUIDANCE  Maintenance Capex - $80MM - $90MM  Lease Expense - $55MM - $60MM  Cash Interest - $70MM- $75MM  Cash Taxes - $5MM - $10MM 7

  8. Slide 8: EC Segment – Chlor-Alkali

    2020 GUIDANCE EC Segment – Chlor-Alkali MECU  1 tonne of chlorine, 1.12 tonnes of caustic soda CHLORINE  Sold as is, or  Converted into HCl for fracking or industrial uses CAUSTIC SODA  Domestic market, but  Compete with Asian imports as not enough domestic supply  Selling price heavily influe

  9. Slide 9: EC Segment – Caustic Soda

    2020 GUIDANCE EC Segment – Caustic Soda Caustic Soda – A Key Improvement Driver  Market forecasts still bullish mid to long term  Demand continues to grow, minimal new supply  Movements in Taiwan contract price are indicative of movements in NE Asia spot pricing 9

  10. Slide 10: EC Segment – Caustic Soda

    2020 GUIDANCE EC Segment – Caustic Soda 10

  11. Slide 11: EC Segment – Caustic Soda

    2020 GUIDANCE EC Segment – Caustic Soda Source – IHS Markit – Jan 2020 11

  12. Slide 12: Concluding Remarks

    CONCLUDING REMARKS 12

Chemtrade Logistics Income Fund — Corporate Update (January 2020) on 6ix