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 (December 2014)

19 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, December 2014

  1. Slide 1: The Worldwide Business Formula

    | THE WORLDWIDE BUSINESS FORMULA December 2014

  2. Slide 2: Important Notice

    Important Notice Statements in this presentation concerning the Company’s business outlook or future economic performances, anticipated profitability, revenues, expenses, or other financial items, anticipated cost synergies and product or service line growth, together with other statements that are

  3. Slide 3: Agenda: SQM at a Glance

    Agenda SQM AT A GLANCE 3

  4. Slide 4: SQM at a Glance

    SQM at a Glance  World Leader in Specialty Businesses: Potassium Nitrate, Iodine, Lithium & Solar Salts  Global Company: Based in Santiago, Chile with sales in more than 115 countries and offices in 20 countries.  Financial Profile  Revenue LTM: US$ 2.0 Billion  EBITDA(1) LTM: US$ 731 Million 

  5. Slide 5: SQM at a Glance

    SQM at a Glance Fertilizers Specialty Chemicals Specialty Plant Potassium Iodine & Lithium & Industrial Nutrients Derivatives Derivatives Chemicals  48% of world KNO3  Strategically located  28% of world  27% of world  50% of world market share(1) in South America market share(1) market share(1

  6. Slide 6: Agenda: Investment Highlights

    Agenda INVESTMENT HIGHLIGHTS 6

  7. Slide 7: 1. Unique and Abundant Natural Resources

    1. Unique and Abundant Natural Resources Highlights Caliche Ore  Abundant natural resources enable long term planning  Caliche ore is only found in Chile  High-quality reserves, which allow low-cost and highly productive operations  The world’s largest deposits of nitrate and iodine  Operations

  8. Slide 8: 2. Sales in Diverse Industries, Sold Globally

    2. Sales in Diverse Industries, Sold Globally Europe 24% North Am. 27% Asia & Other regions 24% SQM commercial office LatAm Joint venture 25% Production facilities Headquarters  Products are sold in more than 115 countries through our worldwide distribution network  Local presence in 20 countries

  9. Slide 9: 3. SPN: Largest Global Producer

    3. SPN: Largest Global Producer Potassium Nitrate: Industry Dynamics SQM Highlights: Potassium Nitrate  Niche market with specific benefits: Chlorine-free,  A world leader: 48% world market share(1) fully water soluble, and fast absorption.  Developed distribution network: Proximity to  Demand d

  10. Slide 10: 4. Potassium: Uniquely Located To Supply Major Markets

    4. Potassium: Uniquely Located To Supply Major Markets Potassium Chloride: Industry Dynamics SQM Highlights  Potassium chloride (KCL) is the most commonly used  Expansion of potassium-based products: potassium-based fertilizer. 9% Sold all over the world  2014 effective capacity expected to be 2.

  11. Slide 11: 5. Iodine: Leading Player in Strong Market

    5. Iodine: Leading Player in Strong Market Industry Dynamics SQM Highlights  Iodine is mainly used in human & animal health  Strong position as long-term market supplier and nutrition. Major uses include X-ray contrast media, LCD, pharmaceuticals and sanitizers  A world leader: 28% market share i

  12. Slide 12: 6. Lithium: Lowest-Cost Producer

    6. Lithium: Lowest-Cost Producer Industry Dynamics SQM Highlights  Global demand: CAGR of 7% for the 2003-2013  Leading chemical lithium producer in the world period. and the lowest cost producer globally  Demand driver: batteries. Future potential related  Produce lithium carbonate, lithium hyd

  13. Slide 13: 7. Industrial Chemicals: Dominant Player in a Niche Market

    7. Industrial Chemicals: Dominant Player in a Niche Market Industry Dynamics SQM Highlights  Various traditional uses for industrial nitrates  Operational flexibility with certain industrial sodium related to detergents, glass, metal treatment, water and potassium nitrate products treatment, and e

  14. Slide 14: Agenda: Other Information

    on Agenda THE WORLDWIDE BUSINESS FORMULA OTHER INFORMATION 14

  15. Slide 15: Capital Expenditure Program

    Capital Expenditure Program Capital Expenditures 2009 - 2013: US$2.0 Billion Capital Expenditure 2014 and 2015: ~US$300M  Potassium nitrate plant in Coya Sur (300,000  After intense investment during the past 5 years, MT/year) investment is expected to decrease in 2014  Increase potassium product

  16. Slide 16: Cost-Savings Program

    Cost-Savings Program Cost-Savings Plan 2013-2015 EBITDA margins  Restructuring  Implementation of lean operations 50% 40%  US$130 million in production costs savings during last 15 months 30%  Approximately US$40 million in savings was related 20% to the depreciation of the peso. 10% 0% 1Q13 2Q1

  17. Slide 17: Other Relevant Topics

    Other Relevant Topics Ownership Structure(1) Considerations Others Chile 13%  Tax reform in Chile Pampa Group 32%  Currency exposure Bank of New  Arbitration with CORFO York (ADRs) 23%  Market conditions / pricing in iodine Potash Corp 32% Dividend Payments SQM Business Opportunities  Dividend

  18. Slide 18: Financial Performance

    Financial Performance Revenues Net Income 3.000 2.429 800 2.500 2.145 2.203 649 2.015 546 1.830 600 US$ Million US$ Million 2.000 467 1.438 382 1.500 400 340 287 1.000 200 500 0 0 2009 2010 2011 2012 2013 LTM 2009 2010 2011 2012 2013 LTM Sep-14 Sep-14 EBITDA(1)/Revenues NFD(2)/EBITDA 45% 46% 41% 1,1

  19. Slide 19: Investment Highlights

    Investment Highlights 1. Unique and abundant natural resources 2. Sales in diverse industries, sold globally 3. SPN: Largest global producer 4. Potassium: Uniquely located to supply major markets 5. Iodine: Leading player in strong market with diverse uses 6. Lithium: Lowest-cost producer 7. Industr

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