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

Business overview and strategy

• Supplies essential industrial chemicals to critical industries with a diversified, recession-resistant portfolio.

• Achieved a 19% CAGR in Adjusted EBITDA over three years, with margins improving by 6 percentage points.

• Vision 2030 targets 5–10% annual growth in EBITDA and distributable cash per unit, aiming for $550–$600M Adjusted EBITDA by 2030.

• Focus areas include organic growth in water chemicals and ultrapure acid, and strategic M&A.

• Strong balance sheet with leverage ratio reduced to 1.8x by end of 2024 and $693M liquidity as of June 2025.

Financial performance and guidance

• 2025 Adjusted EBITDA guidance raised to $475–$500M, up from previous $430–$460M, reflecting robust business conditions.

• Q2 2025 Adjusted EBITDA grew 19.9% year-over-year to $138M; distributable cash after maintenance capex up 49.6%.

• LTM payout ratio at 33%, with distribution per unit increased by 15% since 2023 and a yield above 5%.

• Total unitholder return of ~88% over three years and ~253% over five years.

• Capital allocation balanced across growth, buybacks, distributions, and debt reduction.

Growth initiatives and acquisitions

• Acquiring Polytec for US$150M, expected to add 5%+ to Adjusted EBITDA and broaden water treatment offerings.

• Polytec expands exposure to food processing and municipal water markets, leveraging Chemtrade’s footprint.

• Ongoing organic investments in water chemicals and ultrapure acid, with $40–$60M growth capex planned for 2025.

• Completed water chemicals acquisition in May 2025 for US$30M (~5x expected EBITDA).

• Targeting further acquisitions with $10–50M annual EBITDA, focusing on strategic fit and accretion.