Sociedad Quimica Y Minera De Chile Sa Pfd Series A · BCS:SQM_A
Sociedad Quimica Y Minera De Chile Sa Pfd Series A — SQM — Investor Presentation (September 2005)
22 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, September 2005
Slide 1: Corporate Presentation
Corporate Presentation September 2005
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
Slide 3: World Leader in Specialty Businesses
World Leader in Specialty Businesses SQM at a glance (LTM*) • Revenues (LTM*) US$ 876 million • Operating Income (LTM*) US$ 169 million • EBITDA (LTM*) US$ 237 million • Net Income (LTM*) US$ 105 million Specialty Plant Nutrients Iodine & derivatives Lithium & derivatives 55% of revenues 16% of reve
Slide 4: Natural Resources
Natural Resources Caliche Ore Iquique Salar Brines Nva. Victoria Chile Nitrates Iodine Potassium Tocopilla Lithium María Elena Coya Sur Pedro de Valdivia Pampa Blanca Antofagasta Salar Caliche Ore Salar Brines Productive Facilities
Slide 5: Diversified Cash Flows
Diversified Cash Flows Sales in more than 100 countries - Local presence in 22 countries 17% 30% 6% 14% 13% 20% Customer and industry diversification 9 Fruits, greens, tobacco, x-ray contrast media, biocides, human & animal nutrition, batteries, greases, glass, detergents... Production facilities 9
Slide 6: Strengths
Strengths • Unique and vast natural resources Low cost producer & growth potential • International sales network • Diversified sales: geographically and by industry • Product development & technology know how Æ Worldwide leader in three growing businesses
Slide 7: Challenges
Challenges • Capacity utilization in the short and medium term Capacity increase projects • High cost of the energy • Cost reduction and productivity increase • Environmental restrictions and regulations Æ Project SQM into the next 10 years
Slide 8: SQM Strategy
SQM Strategy Strengthen Worldwide Leadership in Specialty Plant Nutrition, Iodine and Lithium • Pursue new product development and market expansions • Mantain continuous efforts on cost reduction • Evaluate new ventures and acquisitions within the core businesses • Conservative and sound financial p
Slide 9: Specialty Plant Nutrients
Specialty Plant Nutrients 48% potassium nitrate world market share Specialty plant nutrients revenues 500 478 450 428 400 346 350 US$ millions 300 281 259 250 200 150 100 Specialty plant nutrients 2001 2002 2003 2004 Sep 05 9World demand CAGR (99-05): 5% estimated LTM 9Main competitors:Haifa Chemica
Slide 10: Specialty Plant Nutrients Demand
Specialty Plant Nutrients Demand High value crops demand High cost of land Water scarcity Modern agric. techiques Specialty Plant Nutrients 9 Fully Water Soluble & Chlorine Free
Slide 11: Specialty Plant Nutrition Short Term Outlook
Specialty Plant Nutrition Short Term Outlook (*) • Better price environment: • Tight supply and demand increase • Positive price trend in potash-related fertilizers • Water soluble Specialty Plant Nutrition: volumes increase • Capacity increase projects will allow to increase Potassium Nitrate volum
Slide 12: Iodine
Iodine 31% of world market share / Main iodine salts producer Market Evolution Others SQM 10% 31% Others SQM 13% 26% Others Chile Japan 6% Japan Others 55% 31% Chile 28% 1990 2005* 13,000 Tons. +25,000 Tons. 9 World demand CAGR (00-05): 6.8% estimated * Estimation for the year 2005 based on producti
Slide 13: Iodine
Iodine Main uses X-ray contrast Iodine growth drivers, reaffirmed by Others media increased demand 15% 23% Nutrition 9 X-ray contrast media 8% 9 LCD applications have tripled Biocides 9 China consumption 17% Pharmaceut. 9 IF5/RFI for fabrics treatment 8% Organic compounds Chemicals 12% 17%
Slide 14: Iodine Short Term Outlook
Iodine Short Term Outlook (*) • Price increase • Limited supply alternatives and continuos demand increase will allow SQM to maintain a high market share • SQM production capacity increase • Cost increase (energy, raw materials and exchange rate) partially counteracted by production yields improveme
Slide 15: Lithium
Lithium 36% of world market share Market Evolution SQM 36% SQM 16% 1997 2005* 45,000 Tons. 76,000 Tons. Lithium main competitors 9 FMC 9 World demand CAGR (00-05): 7.4% estimated 9 Chemetall 9 China * Estimation for the year 2005 based on production
Slide 16: Lithium
Lithium Main uses Lithium growth drivers 9 Explosive growth in batteries Others Batteries 27% 19% 9 Increased demand for use in A/C 9 New applications 9 Pharmaceuticals 9 New batteries technology Catalysts Greases 10% Glass 16% A/C Frits 9% 12% 7%
Slide 17: Lithium Short Term Outlook
Lithium Short Term Outlook (*) • Price recovery • Drivers behind demand increase are expected to continue • Additional production capacity in China due to the new price environment • SQM: similar sales volumes 2006/2007 Æ volume increase from 2008 onward • New lithium derivatives products (*) See im
Slide 18: Financial Performance
Financial Performance Net Income 3Q Evolution Net Income 9M Evolution 40 35 100 32,2 90 86,7 30 25,7 80 25 70 US$ millions 60 55,6 US$ millions 20 50 15 13,3 40 36,1 10 30 20 5 10 0 0 3Q 2003 3Q 2004 3Q 2005 9M 2003 9M 2004 9M 2005
Slide 19: Financial Performance
Financial Performance Consolidated Revenues Net Income 1000 120 876 105 900 105 789 800 90 692 700 74 75 US$ millions US$ millions 600 554 60 500 47 45 40 400 30 300 200 15 100 0 2002 2003 2004 Sep 05 2002 2003 2004 Sep 05 LTM LTM LTM Last twelve-months Sep. 2004- Sep.2005
Slide 20: Financial Performance
Financial Performance EBITDA Net Debt / EBITDA 240 237 2,4 220 2,1 2,0 1,8 1,7 200 187 US$ millions 1,5 180 times 1,2 160 1,0 149 0,8 144 0,9 140 0,6 120 0,3 100 0,0 2002 2003 2004 Sep 05 LTM 2002 2003 2004 Sep 05 LTM LTM Last twelve-months Sep. 2004- Sep. 2005 EBITDA Operating income + Depreciation
Slide 21: Financial Performance
Financial Performance ADR B NYSE Price ADR B NYSE Quarterly Daily Avg. Transactions 6,0 130 5,5 5,0 US$ million per day ADR B NYSE 110 4,0 90 4,0 US$ / ADR B 70 3,0 50 2,0 1,8 30 0,8 1,0 0,6 0,6 0,6 10 0,0 May 03 May 05 Mar 03 Nov 03 Mar 04 Nov 04 Mar 05 Jan 03 Jun 03 Jul 03 Aug 03 Apr 04 Jun 04 Jul
Slide 22: Investment Highlights
Investment Highlights 9 Unique natural resources 9 Lowest cost producer 9 World leadership in growing specialty markets 9 Market, product and client diversification 9 International commercial network 9 Conservative financial position 9 Focus in cash flow generation 9 US-dollar based revenues