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 an 18% CAGR in Adjusted EBITDA from 2021 to LTM Q3 2025, with a record 2025 guidance above $503 million.

• Maintains a strong balance sheet, reducing leverage to 1.8x Net Debt to LTM Adjusted EBITDA as of Q3 2025.

• Focuses on disciplined capital allocation: growth capex, acquisitions, buybacks, and distributions.

• Vision 2030 targets 5–10% annual Adjusted EBITDA growth, aiming for $550–$600 million by 2030.

Financial performance and capital returns

• Total unitholder return reached ~103% over 3 years and ~353% over 5 years.

• Distributable cash flow CAGR of ~30% (2021–Q3 2025), with a 45% average conversion from Adjusted EBITDA.

• Distribution per unit increased 15% since 2023, with a sub-50% payout ratio and 5% yield.

• Significant unit buybacks: 11.2 million units acquired under NCIB, with a new program launched in August 2025.

• Liquidity of ~$400 million as of Q3 2025, with a well-staggered debt maturity profile.

Growth drivers and market outlook

• Growth driven by pricing optimization, operational improvements, and organic investments, especially in water and ultrapure acid.

• Water treatment chemicals market expected to grow at 5% CAGR (2023–2033), with Chemtrade as a leading supplier.

• Acquisition of Polytec for US$150 million expands water treatment offerings and customer base, adding 5%+ to Adjusted EBITDA.

• Focus on high-return organic projects and strategic M&A, targeting acquisitions with $10–50 million EBITDA.

• Resilient demand in core markets, with risk-mitigating contracts and strong positioning in North America.