Chemtrade Logistics Income Fund · TSX:CHE.UN
Chemtrade Logistics Income Fund — Investor Presentation (May 2025)
45 slides from Chemtrade Logistics Income Fund's investor presentation, May 2025
Slide 1: Our Commitment to Sustainability
RESPONSIBLE CARE® OUR COMMITMENT TO SUSTAINABILITY Chemtrade Logistics Income Fund (TSX: CHE.UN) MAY 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 Industrial Chemicals Provider CHEMTRADE is a Leading Industrial Chemicals Provider providing essential products to critical industries. Attractive Growth - Earnings and cash flow have Attractive Growth Resilient Business Model taken a step-change in recent years, with 3
Slide 4: Chemtrade at a Glance
Chemtrade at a Glance Leading Industrial Chemicals Provider $2.1 Billion $1.1 Billion $430 Million - $460 Million Enterprise Value(1) Market Capitalization(1) 2025 Adjusted EBITDA Guidance Geographic Split Segment Split & Key End Markets TSX: CHE.UN Historical Unit Price *LTM Q1 2025 Revenue *LTM Q1
Slide 5: Chemtrade at a Glance
Chemtrade at a Glance Leading Industrial Chemicals Provider Creating Value (2021-2024) Adjusted EBITDA $430-$460 ▪ Distributable cash increased $129M. (1) ▪ As of May 9th, 2025, Chemtrade has acquired 10.4 million units under NCIB expiring June 2025. $503 $471 $431 ▪ DCPU increased from $.80/unit in
Slide 6: Historical Growth Drivers
Historical Growth Drivers 2021 – 2024 Adjusted EBITDA Growth Driven By: Adjusted EBITDA Growth Bridge (2021 to 2024) ▪ Chlor-alkali ▪ Water ▪ Chlorate Strategic Activities: ADJUSTED EBITDA INCREASED BY $190M ▪ Market pricing optimizations ▪ Reliability and Productivity improvements ▪ Organic growth
Slide 7: Balance Sheet
Balance Sheet Conservative Financial Approach Strong Balance Sheet Capital Allocation Split (2021 - 2024) ▪ Maintain a strong balance sheet through cycle. NCIB Unit Purchases, ▪ Leverage(1) Target 2.0x - 2.5x. $55 Distributions, $241 Growth Capex, Fully Funded Strategy $176 ▪ Fully funded Growth cap
Slide 8: Chemtrade Vision – 2030
Chemtrade Vision – 2030 Key Drivers “Vision 2030” targets for unitholder returns: ▪ Targeted growth for EBITDA and DCPU(1) of 5-10% per year. ▪ Growth on a per unit basis supplemented by reduced units outstanding via buybacks. Distributable Cash Growth Unit Purchases Distribution Organic Growth Exte
Slide 9: Chemtrade Vision 2030
TSX: CHE.UN Chemtrade Vision 2030 Targeting $550 - $600M of annual Adjusted EBITDA Anticipated Drivers of Growth (2025 – 2030): by 2030. Existing Business Improvements ▪ Continued focus on Commercial and Operational ▪ Reflects targeted growth in Adjusted EBITDA of 5-10% annually. Excellence (incl. p
Slide 10: Water Treatment Chemicals Capturing Secular Tailwinds
Water Treatment Chemicals Capturing Secular Tailwinds Growing Water Treatment Chemicals Demand Opportunity to Grow Water Chemicals Business Chemtrade can leverage its broad set of 5% CAGR (2023 – 2033) US$12Bn internal resources and capabilities in water Expected growth in global water 2023 North Am
Slide 11: Valuation
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 12: 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 tailwinds. Strong Total Unitholder Return through
Slide 13: For more information
TSX: CHE.UN For more information: investor-relations@chemtradelogistics.com Chemtrade at Glance Historical Performance Growth Outlook Valuation Investment Highlights Appendix 13
Slide 14: Appendix
Appendix Chemtrade at Glance Historical Performance Growth Outlook Valuation Investment Highlights Appendix 14
Slide 15: 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 16: 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 17: Potential U.S. Tariff Impact
TSX: CHE.UN Potential U.S. Tariff Impact Chemtrade continues to actively monitor developments surrounding the tariff environment to swiftly respond to any potential impacts and/or opportunities. To date, excluding FX, impacts on Chemtrade’s overall business have been immaterial. Chemtrade anticipate
Slide 18: Company History
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 Strengthened Sulphur EBITDA & & Water Segments Acquisitions $503 $471 $431 $283 $296 $280 $265 $221 $
Slide 19: 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 20: Q1 2025 Consolidated Results
TSX: CHE.UN Q1 2025 Consolidated Results ▪ Q1 2025 represented a strong start to 2025, with Adjusted EBITDA increasing in both operating segments. ▪ A weaker Canadian dollar relative to the US dollar year-over-year positively impacted revenue and Adjusted EBITDA in Q1 2025 by $21.0 million and $6.5
Slide 21: Sulphur and Water Chemicals (SWC) Q1 2025 Results
TSX: CHE.UN Sulphur and Water Chemicals (SWC) Foreign Exchange Impact Q1 2025 Results ▪ The weaker Canadian dollar relative to the US dollar year-over-year in Q1 2025 Revenue (C$ millions) positively impacted SWC Revenue and SWC Adjusted EBITDA by $12.9 million and $1.7 million, respectively. SWC Re
Slide 22: Electrochemicals (EC) Q1 2025 Results
TSX: CHE.UN Electrochemicals (EC ) Q1 2025 Results Foreign Exchange Impact ▪ The weaker Canadian dollar relative to the US dollar year-over-year in Q1 2025 Revenue (C$ millions) positively impacted EC Revenue and EC Adjusted EBITDA by $8.1 million and $5.3 -0.2% million, respectively. EC Revenue $18
Slide 23: Q1 2025 Corporate Costs
TSX: CHE.UN Q1 2025 Corporate Costs Foreign Exchange Impact Corporate Costs (C$ millions) ▪ Business results are presented on an unhedged basis and, during Q1 2025, benefitted from weakness in the Canadian dollar relative to the US dollar. ▪ The related but offsetting realized gains and losses on Ch
Slide 24: Balance Sheet and Capital Allocation
TSX: CHE.UN Balance Sheet and Capital Allocation Net Debt / LTM Adjusted EBITDA(1) Consistent focus on balanced capital allocation across three pillars: 1) Investing in high-return, strategic growth opportunities. 2.2x ▪ Plan to invest $40 million - $60 million of Growth capital 1.9x 2.0x 2.0x expen
Slide 25: 2025 Guidance
TSX: CHE.UN 2025 Guidance 2025 Guidance: Adjusted EBITDA (C$ millions) ▪ Uncertain macro-economic conditions make it particularly challenging to forecast results. We have $430.0 - $460.0 taken this uncertainty into account and given our strong start to 2025 and our visibility on the balance of the y
Slide 26: 2025 Guidance
TSX: CHE.UN 2025 Guidance 2025 2024 Three Months ended Actual Guidance Actual C$ millions March 31, 2025 March 31, 2024 Adjusted EBITDA (1) $430.0 - 460.0 $470.8 $120.1 $109.9 Maintenance Capital Expenditures (1) $100.0 - $120.0 $104.5 $17.1 $15.4 Growth Capital Expenditures (1) $40.0 - $60.0 $81.3
Slide 27: Sulphur and Water Chemicals (SWC) Segment
TSX: CHE.UN Sulphur and Water Chemicals (SWC) Segment Water Solutions Sulphuric Acid (H2SO4) Alum, ACH, Regen Acid Ultrapure Acid Merchant Acid PACI, Ferric Municipal and industrial water treatment Gasoline production Semiconductor manufacturing, Wood pulp, industrial chemicals, car speciality batte
Slide 28: SWC Outlook
TSX: CHE.UN SWC Outlook Water Chemicals Sulphuric Acid Near-Term Considerations Maintenance Turnarounds ▪ Sulphuric acid is a key raw material for Water Chemicals, so ▪ Several sulphuric acid plants are expected to undergo higher costs could pressure margins until contracts are maintenance turnaroun
Slide 29: Electrochemicals (EC) Segment
TSX: CHE.UN Electrochemicals (EC) Segment Electrochemicals Caustic Soda (NaOH) Chlorine (Cl2) Hydrochloric Acid (HCI) Sodium Chlorate (NaCI3) Pulp & paper, soaps & detergents, Water treatment, chemical processes pH adjustor in water treatment, oil & gas Pulp & paper bleaching aluminum, oil & gas, li
Slide 30: EC Outlook
TSX: CHE.UN EC Outlook North Vancouver Chlor-Alkali Facility Lease Extension LOI ▪ Chemtrade entered into non-binding LOI with the Port of Vancouver to extend Forecast its land lease until December 31, 2044, on similar terms to the existing lease. ▪ Chemtrade is preparing the requisite materials to
Slide 31: Key Sensitivities
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$12.7 million C$/US$ exchange rate ▪ Change of 1 cent = C$3.6 million (favourable if C$ weakens) Chemtrade at Glance Histo
Slide 32: 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 33: 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 34: 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 35: Non-IFRS Financial Measures and Ratios
TSX: CHE.UN Non-IFRS Financial Measures and Ratios For the three months ended C$ millions, except per unit metrics and ratios March 31, 20253 March 31, 20243 Cash flow from operating activities $ 11,636 $ 2,412 Add (Less): Lease payments net of sub-lease receipts (17,813) (14,643) (Decrease) Increas
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 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 LTM Cash flow from operating activities $357.0 $348.0 $345.3 $332.3 $ 349.5 $ 401.5 $ 407.5 $ 421.8 $
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 March 31 C$ thousands 2025 2024 Net earnings $ 49,069 $ 41,955 Add (Less): Depreciation and amortization 53,483 44,890 Net finance costs 10,526 5,642 Income
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 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Net earnings (loss) $ 134.0 $ 126.9 $ 128.3 $ 139.0 $ 211.7 $ 249.3 $ 22
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: 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 45: 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. Chemtrade at Glance Historical Performance Growth Outlook Valuation
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