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 (March 2023)
23 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, March 2023
Slide 1: Corporate Presentation March 2023
CORPORATE PRESENTATION March 2023
Slide 2: 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: “anticipate,” “plan,” “believe,” “estimate,” “expect,” “strate
Slide 3: SQM at a Glance: Strong Performance Across All Business lines
SQM at a Glance: Strong Performance Across All Business lines FY2022 Revenues: US$10.7 billion | FY2022 Adjusted EBITDA1: US$5.8 billion FY2022 Adjusted EBITDA Margin1 : 55% | NFD/Adjusted EBITDA: 0x LITHIUM AND SPECIALTY PLANTS IODINE AND INDUSTRIAL POTASSIUM DERIVATIVES NUTRITION DERIVATIVES CHEMI
Slide 4: 2022 Business Highlights
2022 Business Highlights Record High Sales Prices in Lithium, SPN, Iodine and Potassium Markets Sustainable Capacity Increases To Meet Growing Demand in Lithium, Iodine and Nitrates Markets Innovation: Doubling Lithium Production in 2022-2024 while Significantly Reducing Extractions Salar Futuro Ann
Slide 5: Responsible Business Strategy
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 sustainable Strategy ecosystems. Responsible Processes m
Slide 6: 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 potassium chloride and iodine 40% by 2030 and 65% by 2040. Alliance, DJSI Chile y DJSI MILA products by 2030, and in all of Paci
Slide 7: Salar Futuro Project
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 brines basin of the Salar de Atacama • Reducing brine extraction while mai
Slide 8: Revenues by region and operations footprint
Europe 9% North America 9% Asia & Others 77% Latam & Carribean 3% Commercial Offices Joint Venture Chile Production Plants 2% Mining Operations 1 Revenues for the twelve months ended December 31, 2022 SQM – Corporate Presentation 8
Slide 9: 4Q2022 financial results
Adjusted Revenue Gross Profit Net Income Adjusted EBITDA EBITDA Margin US$3,134m US$1,642m US$1,151m US$1,667m 53% Previous % Change Previous % Change Previous % Change Previous % Change Previous % Change Q-on-Q 6% Q-on-Q 1% Q-on-Q 5% Q-on-Q 0% Q-on-Q -5% Y-on-Y 187% Y-on-Y 203% Y-on-Y 258% Y-on-Y 1
Slide 10: 4Q2022 Business Highlights
4Q2022 Business Highlights Record High Quarterly Earnings of US$4.0 per share Lithium sales prices and volumes reached record-high levels in 4Q2022 Record-high iodine sales prices in 4Q2022 Successful Ramp Up of Lithium Carbonate Capacity in Chile to 180,000 metric tons Record Contribution to the Ch
Slide 11: Global Lithium Chemical Market
LITHIUM AND DERIVATIVES Quarterly Sales Volumes (kMT) & Average Price (US$/kg) Global Lithium Chemical Market $59 FY2022 Gross Profit: US$4.5B $54 $56 • Strong demand growth and tight FY2022 Revenues: US$8.2B supply during 4Q22 have pushed $38 prices to record-high levels. • Positive lithium demand
Slide 12: 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 13: Lithium capacity expansion projects in Chile, Australia and China
Chile Australia China Chile: lithium sulfate production to feed lithium China: SQM´s lithium hydroxide refining capacity in hydroxide refinery + tolling China. from lithium sulfate, 30,000 MT, capex Australia: Mt. Holland lithium Chile: lithium capacity ~US$140m hydroxide project of 50,000 MT expans
Slide 14: Global Iodine Market
IODINE AND Global Iodine Market DERIVATIVES Quarterly Sales Volumes (kMT) & Average Price (US$/kg) • Expected market growth of ~1-2% in 2023, primarily related to increased $69 demand from X-ray contrast media. FY2022 Gross Profit US$472M FY2022 Revenues: US$754M $64 • Market remains tight, prices h
Slide 15: Iodine and Nitrates Projects
Iodine and Nitrates Projects, total capex 2023-2025: ~US1.2 billion, including maintenance: TARAPACÁ REGION Pampa Orcoma Nueva Victoria Pampa Blanca, additional 1,300 MT of iodine and 100,000 MT of nitrates salts Tocopilla Greenfield projects, Pedro de Valdivia additional 2,500 MT of Coya Sur iodine
Slide 16: Global KNO3 Market
SPECIALTY PLANTS NUTRITION SPN Quarterly Sales Volumes (kMT) & Average Price (US$/MT) Global KNO3 Market $1,440 $1,310 $1,410 $1,380 • Expecting downward price trend FY2022 Gross Profit US$450M to continue in 2023. FY2022 Revenues: US$1.2B $940 • Partial demand recovery is expected in the agricultur
Slide 17: Global Potash Market
Potassium Quarterly Sales Volumes (kMT) & Average Price POTASSIUM (US$/MT) $1,030 Global Potash Market $960 • Potash prices continued to FY2022 Gross Profit US$244M $805 $820 decrease during 4Q22 as a result of weaker demand and high FY2022 Revenues: US$437M $685 inventory across the markets. • Pota
Slide 18: Global Industrial Chemicals Market
INDUSTRIAL Industrial Chemicals Quarterly Sales Volumes (kMT) CHEMICALS & Average Price (US$/MT) $1,593 Global Industrial Chemicals Market FY2022 Gross Profit US$53M $1,236 FY2022 Revenues: US$165M $1,114 • Industrial potassium nitrate market prices $910 $809 $816 should follow the trends 7% $638 $6
Slide 19: Debt Maturities: Prudent Financial Management & Stable Investment Grade Rating
Debt Maturities: Prudent Financial Management & Stable Investment Grade Rating Maturity debt profile1 as of December 31, 2022 (US$ million) 800 700 700 600 500 400 465 400 300 315 200 265 100 138 123 15 15 15 7 62 - Bonds & Loans maturity Moody’s: Baa1 | Standard & Poor’s: BBB+ 1 Including amortizat
Slide 20: Ownership Structure
23% 16% Bank of New York Mellon (ADRS) Tianqi Ownership Structure1 11% Pampa Group Kowa Group 2% Chilean Pension Funds 22% Others 26% 1 According to the Shareholder Registry as of December 31, 2022 SQM – Corporate Presentation 20
Slide 21: Ownership & Dividends: Delivering Robust Growth and Profitability
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: Payments Example
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 – 7,000 17.0 7,000 –
Slide 23: Contact information
Contact information Gerardo Illanes CFO gerardo.illanes@sqm.com Kelly O’Brien Head of Investor Relations kelly.obrien@sqm.com Irina Axenova Investor Relations irina.axenova@sqm.com Isabel Bendeck Investor Relations isabel.bendeck@sqm.com
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