Sociedad Quimica Y Minera De Chile Sa Pfd Series A · BCS:SQM_A
Sociedad Quimica Y Minera De Chile Sa Pfd Series A — Sociedad Química y Minera de Chile (SQM) — Investor Presentation (November 2023)
23 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, November 2023
Slide 1: Corporate Presentation November 2023
CORPORATE PRESENTATION November 2023
Slide 2: Customary note regarding forward-looking statements
This presentation release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: Customary note regarding “anticipate,” “plan,” “believe,” “est
Slide 3: SQM at a Glance: Strong Performance Across All Business lines
SQM at a Glance: Strong Performance Across All Business lines LTM1 Revenues: US$9.3 billion | LTM1 Adjusted EBITDA2: US$4.4 billion LTM1 Adjusted EBITDA Margin2 : 48% | NFD/Adjusted EBITDA2: 0.3x LITHIUM AND SPECIALTY PLANTS IODINE AND INDUSTRIAL POTASSIUM DERIVATIVES NUTRITION DERIVATIVES CHEMICALS
Slide 4: Responsible Business Strategy
Delivering Sustainable Solutions to Global Challenges Responsible Responsible Processes Research and Development Development, reserarch and innovation. Business Reduce our ecological footprint and protect Create uniquesolutions for global markets that enable us to enhance the compaty´s value in a su
Slide 5: Our commitment to Sustainability
Our commitment to Sustainability Emissions reduction Member of the United Nations Continental water reduction Carbon neutral in the lithium Global Compact, Global Battery by 2030, and in all of our products 40% by 2030 and 65% by 2040. Alliance, DJSI Chile y DJSI MILA by 2040. Pacific Alliance. In t
Slide 6: Salar Futuro: Advanced Technology to Reduce Footprint Beyond Set Goals
Salar Futuro: Advanced Technology to Reduce Footprint Beyond Set Goals Estimated Direct Investment: US$1.5B Advanced Evaporation Increased production Technologies (AET) for a yields at the refining significant part of the • Achieving neutral long-term water balance in the plants Salar de Atacama bri
Slide 7: Global Presence and Diversified Sales Channels
Global Presence and Diversified Sales1 Channels Europe North America 10% 9% Asia & Others 77% Latam & Carribean 2% Commercial Offices Chile Joint Venture Production Plants 2% Mining Operations 1 Revenues for the last twelve months ended September 30, 2023 SQM – Corporate Presentation 7
Slide 8: Summary of Third Quarter 2023 Results (year-on-year)
Summary of Third Quarter 2023 Results (year-on-year) Adjusted Adjusted Revenue Gross Profit Net Income EBITDA EBITDA Margin US$1,840m US$754m US$479m US$788m 43% % Change % Change % Change % Change % Change Y-on-Y (38)% Y-on-Y (54)% Y-on-Y (56)% Y-on-Y (53)% Y-on-Y (24)% Trend Trend Trend Trend Tren
Slide 9: Results Key Drivers 3Q2023 vs 3Q2022
Results Key Drivers 3Q2023 vs 3Q2022 Lithium: Higher sales volumes (4%), significantly lower year-on-year average sales prices (-47%) Iodine: Higher average sales prices (6%) partially offset by lower (-6%) sales volumes SPN: Higher sales volumes (8%), lower year-on-year average sales prices (-30%)
Slide 10: Summary of Third Quarter 2023 Results (quarter-on-quarter)
Summary of Third Quarter 2023 Results (quarter-on-quarter) Adjusted Adjusted Revenue Gross Profit Net Income EBITDA EBITDA Margin US$1,840m US$754m US$479m US$788m 43% % Change % Change % Change % Change % Change Q-on-Q (10)% Q-on-Q (12)% Q-on-Q (17)% Q-on-Q (10)% Q-on-Q (11)% Trend Trend Trend Tren
Slide 11: Results Key Drivers 3Q2023 vs 2Q2023
Results Key Drivers 3Q2023 vs 2Q2023 Lithium: Slightly higher sales volumes (1%), lower quarter-on-quarter average sales prices (-13%) Iodine: Slightly lower average sales prices (-2%), lower (-1%) sales volumes SPN: Higher sales volumes (1%), lower quarter-on-quarter average sales prices (-11%) Pot
Slide 12: Lithium and Derivatives: Long-Term Fundamentals Support Demand Growth
Lithium and Derivatives: Long-Term Fundamentals Support Demand Growth LITHIUM AND DERIVATIVES Quarterly Sales Volumes (kMT) & Average Price (US$/kg) Global Lithium Chemical Market $59 LTM1 Gross Profit: US$3.4B $54 $56 • Estimated annual global EV sales growth $51 ~35% in 2023. LTM1 Revenues: US$6.9
Slide 13: Lithium and Derivatives: Fully integrated lithium producer
Lithium and Derivatives: Fully integrated lithium producer from natural resource to chemical refining with full traceability Chile Australia China Chile: lithium sulfate production to feed lithium hydroxide refining capacity in China. China: SQM´s lithium hydroxide refinery + tolling Chile: capacity
Slide 14: Meeting Lithium Demand Growth through Innovation and Significant Capacity Increase
Meeting Lithium Demand Growth through Innovation Lithium Chemical Demand and Significant Capacity Increase 2022 10% SQM Lithium Capacity Growth, MT 20% ~760 kMT 25,000 70% 30,000 30,000 30,000 CAGR ~23% 2025E 210,000 210,000 180,000 180,000 2024E 8% 17% ~1,500 2022 2023 2024 2025 kMT LC/LH (Chile) L
Slide 15: Iodine and Derivatives: Capturing Segment Growth in High Price Environment
Iodine and Derivatives: Capturing Segment Growth in High Price Environment IODINE AND Global Iodine Market DERIVATIVES Quarterly Sales Volumes (kMT) & Average Price (US$/kg) • Flat to negative global market growth in 2023, with contrast media segment $70 growing close to 7%. LTM1 Gross Profit US$551
Slide 16: Nitrates and Iodine Operations: SQM to maintain leading position
Nitrates and Iodine Operations: SQM to maintain leading position in nitrates and iodine industries Iodine and Nitrates Projects, total capex 2023-2025: ~US1.2 billion, including maintenance: TARAPACÁ REGION Pampa Orcoma Nueva Victoria Pampa Blanca, additional 1,300 MT of iodine and 100,000 MT of nit
Slide 17: Specialty Plant Nutrition: Demand and Sales Volumes Recovery
Specialty Plant Nutrition: Demand and Sales Volumes Recovery SPECIALTY PLANTS NUTRITION SPN Quarterly Sales Volumes (kMT) & Average Price (US$/MT) $1,440 Global KNO3 Market $1,410 $1,380 $1,310 $1,310 LTM1 Gross Profit US$264M • The demand recovery seen during LTM1 Revenues: US$964M $1,120 $990 3Q23
Slide 18: Potassium: Prices Decline and Sales Volumes Improve
Potassium: Prices Decline and Sales Volumes Improve Potassium Quarterly Sales Volumes (kMT) & Average Price POTASSIUM (US$/MT) $1,030 $960 Global Potash Market LTM1 Gross Profit US$94M $805 $820 LTM1 Revenues: US$309M $685 • Potassium market demand could $630 increase by ~10M tons in 2023 $530 vs 20
Slide 19: Industrial Chemicals: Stable Outlook and New Opportunities
Industrial Chemicals: Stable Outlook and New Opportunities INDUSTRIAL Industrial Chemicals Quarterly Sales Volumes (kMT) CHEMICALS & Average Price (US$/MT) Global Industrial Chemicals Market $1,595 LTM1 Gross Profit US$35M • Industrial potassium nitrate LTM1 Revenues: US$190M $1,235 market prices sh
Slide 20: Ownership & Dividends: Delivering Robust Growth and Profitability
Ownership & Dividends: Delivering Robust Growth and Profitability 18% 19% Bank of New York Mellon (ADRS) Tianqi Ownership Structure1 13% Pampa Group Kowa Group 2% Chilean Pension Funds 22% Others 26% 1 According to the Shareholder Registry as of October 31, 2023 SQM – Corporate Presentation 20
Slide 21: Ownership & Dividends: Dividend Policy
Ownership & Dividends: Delivering Robust Growth and Profitability Dividend Policy1 Dividend Payout (% of Net Income) 100% 80% 60% Current Assets ≥ 2.5 2.0 1.5 Current Liabilities Current and Non−Current Liabilities−Cash & Cash Equivalents −Other Current Financial Assets ≤ 0.8 0.9 1.0 Total Equity If
Slide 22: Agreement with CORFO
Agreement with CORFO Payments1 Li2CO3 LiOH KCL US$/MT %2 US$/MT %2 US$/MT %2 Production Allowance < 4,000 6.8 < 5,000 6.8 <300 3.0 4,000 – 5,000 8.0 5,000 – 6,000 8.0 300 – 400 7.0 Total production quota 2018-2030: 349,553 MT of LME or ~2.2 5,000 – 6,000 10.0 6,000 – 7,000 10.0 400 – 500 10.0 6,000
Slide 23: Contact information
Contact information Irina Axenova Head of Investor Relations irina.axenova@sqm.com Isabel Bendeck Investor Relations isabel.bendeck@sqm.com
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