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) — Q1 2017 Earnings Presentation

15 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's earnings presentation, 2017

  1. Slide 1: First Quarter 2017 Earnings Presentation

    First Quarter 2017 Earnings Presentation

  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: SQM at a Glance

    SQM at a Glance World Leader in Specialty Businesses: Potassium Nitrate, Iodine, Lithium & Solar Salts  Financial Profile  Healthy Credit Metrics  Revenue LTM(1): US$2.1 billion  NFD/EBITDA .40  EBITDA(2) LTM: US$821 million  Moody’s: Baa1  EBITDA Margin LTM: ~ 39%  Standard and Poor’s BBB (

  4. Slide 4: Natural Resources and Experience

    Natural Resources and Experience High-quality reserves  low-cost operations Caliche Ore  Caliche ore is only found in Chile  The world’s largest deposits of nitrates and iodine  Proprietary mining rights pursuant to exploitation concessions Salar Brines  High concentrations of potassium and lit

  5. Slide 5: Results

    Results Revenues Net Income(1)(2) 2,500 2,203 500 467 2,014 2,079 1,939 2,000 1,728 400 323 296 US$ Million US$ Million 1,500 300 278 213 1,000 200 500 100 0 0 2013 2014 2015 2016 LTM Mar 2013 2014 2015 2016 LTM Mar 2017 2017 Higher sales volumes in all business lines in 1Q 2017 and continued high

  6. Slide 6: Results: Revenue and Gross Profit Contribution

    Results Revenue Contribution Gross Profit Contribution 1Q2017/1Q2016 1Q2017/1Q2016 600 190 13 3 1 178 25 170 60 550 532 35 150 (4) US$ Million US$ Million 500 77 130 114 450 110 90 (11) (2) 392 10 400 70 (3) 350 50 SPN Iodine Lithium I. Chem. Potassium P Q Impact of higher volumes outweighs lower p

  7. Slide 7: Market Outlook

    Market Outlook Potassium Market: Average price increased in 1Q2017 compared to 4Q2016, this trend could continue into 2017. Demand growth in 2017 ~2 million MT to over 60 million MT/year Potassium Nitrate: Slight decrease in sales volumes in water soluble segment during 1Q2017 but the market will

  8. Slide 8: Capital Expenditures & Investments

    Capital Expenditures & Investments Historical maintenance CAPEX ~US$100 million Growth Plans 2016-2017: Lithium Hydroxide Expansion: ~US$30 million 2017-2018: Potassium Nitrate Expansion: ~US$100 million 2017-2018: Lithium Carbonate Expansion: ~US$50 million 2016-2019 (first stage): Chaucharí –

  9. Slide 9: Potassium

    Potassium <3% 1,645kMT LTM Market Share LTM Sales Volumes US$ 428mm 7% LTM Revenues Contribution to LTM Gross Profit Potassium Chloride: Industry Dynamics SQM Highlights  Low-cost producer of potassium chloride  Potassium chloride is the most commonly used potassium-based fertilizer  Brazil remai

  10. Slide 10: Specialty Plant Nutrition

    Specialty Plant Nutrition 46% 853kMT LTM KNO3 Market Share(1) LTM Sales Volumes (2) US$ 621mm 20% LTM Revenues Contribution to LTM Gross Profit Industry Dynamics SQM Highlights  Potassium nitrate (KNO3) provides unique  Access to reserves of potassium and nitrate benefits: Chlorine-free, water sol

  11. Slide 11: Iodine and Derivatives

    Iodine and Derivatives 35% 11.2kMT LTM Market Share LTM Sales Volumes US$ 241mm 6% LTM Revenues Contribution to LTM Gross Profit Industry Dynamics SQM Highlights  Main uses: X-ray contrast media, LCD, pharmaceuticals and sanitizers  Low-cost producer  and prices are affected by increased  Develo

  12. Slide 12: Lithium and Derivatives

    Lithium and Derivatives Li 27% 51kMT LTM Market Share LTM Sales Volumes US$ 592mm 59% LTM Revenues Contribution to LTM Gross Profit Industry Dynamics SQM Highlights  Main uses: batteries (~53%), lubricant,  Leading lithium chemicals producer in the world and lowest cost glass, pharmaceuticals. Fut

  13. Slide 13: Industrial Chemicals

    Industrial Chemicals 173kMT LTM Sales Volumes US$ 139mm 7% LTM Revenues Contribution to LTM Gross Profit Industry Dynamics SQM Highlights  Various traditional uses for industrial nitrates related  Operational flexibility with certain industrial sodium and to glass, metal treatment, water treatment

  14. Slide 14: Other Relevant Topics

    Other Relevant Topics Ownership Structure(1) SQM Business Opportunities Other Bank of  Strong demand growth in lithium market. Chile, 14% New York Lithium carbonate production expansion to 63k (ADRS), MT/year 22%  JV to develop Caucharí-Olaroz lithium project, 25k MT/year 1st stage  Potassium nit

  15. Slide 15: Contact Information

    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

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