10 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's earnings presentation, March 2018
Slide 1: SQM 2017 Results
SQM 2017 RESULTS
Slide 2: Important Notice
Important Notice SQM 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
Slide 3: SQM at a Glance
SQM at a Glance 2017 Revenues: US$2.2 billion | 2017 EBITDA: US$894 million | EBITDA Margin LTM: ~ 41% NFD/EBITDA: .3 | Moody´s: Baa1 | Standard and Poor´s: BBB FERTILIZERS SPECIALTY CHEMICALS Potassium Specialty Plant Iodine & Lithium & Industrial Nutrients Derivatives Derivatives Chemicals 60% Con
Slide 4: Review of Results
Review of Results SPN Iodine Lithium I.Chem. Potassium P Q Revenue Contribution Gross Profit Contribution 2017/2016 2017/2016 2500 900 2400 763 2300 130 31 800 116 7 22 2157 US$ Million US$ Million 2200 763 2100 700 736 743 (2) 1939 73 21 2164 2171 (24) 2157 (14) 611 0 12 2000 0 600 2013 2034 620 19
Slide 5: New Agreement CORFO
Payments Production allowance Li2CO3 LiHO Total production quota until 2030: 349,553 MT of LME: New Agreement US$/MT % US$/MT % Reminder original quota: 64,816 New quota: 185,767 <4,000 6.80% <5,000 6.80% Additional quota: 112,723 4,000-5,000 8.00% 5,000-6,000 8.00% CORFO Efficiency quota: 51,063 To
Slide 6: SQM Lithium Projects
SQM Lithium Projects Lithium Carbonate & Hydroxide Chile LITHIUM CARBONATE • Current capacity 48,000 MT LITHIUM HYDROXIDE • Expansion to 70,000 MT in 2018 • Current capacity 6,000 MT • Expansion to 100,000 MT in 2019 • Expansion to 13,500 MT in 2018 • CAPEX ~US$170 million • CAPEX ~US$30 million Arg
Slide 7: Market Outlook
Market Outlook • Lithium Market: Strong market growth (~20%) in 2018 to ~260k MT, tight market with average prices 20% higher in 1H2018 than in 4Q2017, prices in 2H2018 could be lower than in 1H2018 but higher than in 2H2017. EVs batteries market growing 35% in the next 5 years, total demand more th
Slide 8: Capex
Capex Historical Maintenance CAPEX: ~US$100 million 2016-2018: Lithium Hydroxide Expansion to 13.5k MT: ~US$30 million 2017-2018: Potassium Nitrate Expansion to 1.5m MT: ~US$50 million 2017-2019: Lithium Carbonate Expansion to 100k MT: ~US$170 million 2017-2018: Iodine capacity expansion to 14k MT:
Slide 9: Other Relevant Topics
Other Relevant Topics Ownership Structure1 Dividend Policy2 2017 Net Income distribution in 3 interim & 1 final dividend 15% 100% 80% 60% 21% 𝑐𝑎𝑠ℎ+𝑜𝑡ℎ𝑒𝑟 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 (a) ≥ 2.5 2.0 1.5 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 32% 𝑡𝑜𝑡𝑎𝑙…
Slide 10: Contact Information
SQM CONTACT INFORMATION: • Gerardo Illanes: VP of Finance gerardo.illanes@sqm.com • Kelly O’Brien: Head of Investor Relations kelly.obrien@sqm.com • Irina Axenova: Investor Relations irina.axenova@sqm.com