Sociedad Quimica Y Minera De Chile Sa Pfd Series A · BCS:SQM_A
Sociedad Quimica Y Minera De Chile Sa Pfd Series A — Chemical & Mining Co of Chile — Investor Day (September 2016)
33 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor day presentation, Sep 2, 2016
Slide 1: SQM Analyst Day 2016
SQM Analyst Day 2016 New York Lotte Palace Hotel ...
Slide 2: Forward-looking statements
a > Forward-looking statements 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 statem
Slide 3: Agenda
> Agenda OOCOO® Patricio de Solminihac, CeO Eugenio Ponce, Chairmanof the Board Dani Jiménez, VP of Sales of Lithium and lodine Gerardo illanes, VP of Finance and IR Presentation will be avallable at our website yaywisar.com aaa i \
Slide 4: Patricio de Solminihac, CEO
Slide 5: CEO Overview
> CEO Overview ‘An update since March 2015 Legal Review “ Business Review ¥ Looking forward COOIONS) a
Slide 6: Investigation of Payments
a > Investigation of Payments [At the beginning of 2015, Chilean authorities began an investigation of SQM relating to payments of invoices for services that may not have been properly supported or that may not have been necessary to generate income SQM has paid “USS10 milion in back taxes, interest
Slide 7: Investigation of Payments
a > Investigation of Payments Koon] Implementation of measuresto prevent similar incidents inthe future: creation of Board of Directors Corporate Governance Committee ‘Separating and strengthening the team and responsibilities ofthe Internal Ault and Compliance departments Hiring a Big Four accounti
Slide 8: Arbitration: CORFO and SQM
a > Arbitration: CORFO and SQM a 1993: SOM signed lease agreement and project agreement with CORFO © Both agreements valid through 2030 “Chilean Nuclear and Energy Commission (CHEN) limits SQM to 180,100 tons of total lithium metal (1M tons of LCE) extraction in aggregate through 2030 Cumulative Lea
Slide 9: Arbitration: CORFO and SQM
a > Arbitration: CORFO and SQM a "May 2014: arbitration was initiated betwoen SQM and CORFO. CORFO Alleges SQM Position “SoM inconety determin lease payments and | underpaid CORO USS8 ion 2008-2018) earnatinalceference pice for KCL (used in| + — Percntrac CRU Bish Sulfur determines reference pie rer
Slide 10: Arbitration Process
a > Arbitration Process a ¥ Adjudicated by the Santiago Chamber of Commerce ~ independent third party arbitrator selected ¥ Three-stage process: Discovery, Conciliation, Evidentiary Term Two year time limit, excluding conciliation stage and independent expert reviews requested by arbitrator Arbitrat
Slide 11: Recent Accomplishments
> Recent Accompli hments HY Maintained successful operations Implemented plans to improve internal controls and compliance Successfully restructured iodine and nitrates op > Focusing production on Nueva Victoria operations (more ecient), > ncreasing potassium nitrate capacity ¥ Good relationships wi
Slide 12: Strategic Plan: Looking towards the future
a > Strategic Plan: Looking towards the future Psi] Goal: To increase EBITDA to over USS1 billion by 2020 SOMstategieGoels inotivas to Rech Gol ‘SPN: Continve to add value to KNOS market + Build new NPK plants and form now strates partnerships ‘Aggressive invesnantin irk development. New oct, pa use
Slide 13: Specialty Plant Nutrition
L- | > Specialty Plant Nutrition a Worldwide presence and distribution network, with aver 26'NPK plants around the world ‘New por fates in the Nethestands
Slide 14: Iodine
Slide 15: Lithium: Cauchari Joint Venture
a > Lithium: Cauchari Joint Venture Psi] ~ 50/50 JV with Lithium Americas over world clas lithium depositin Argentina “Significant synergies with existing Chilean operations (management, production process, technology logistics, procurement, maintenance, etc.) ~ 50K MT per year for 40 years {two sta
Slide 16: Potash: Sintoukola Project
> Potash: Sintoukola Project Investment of US$20 million for 17% ownership stake over Sintoukola project, Including three potash deposits: Kola, Dougou and Yangala inthe Republicof Congo Very high grade potash deposits located less than 35 km from port > strategic access to Brazilian, South African
Slide 17: Eugenio Ponce
Eugenio Ponce Chairman of the Board
Slide 18: Introducing the Board
a > Introducing the Board all oa TugenioPonce Edward Walzer
Slide 19: Board Committees
> Board Committees Viember Al Directors!Committee | Safety, Health and Corporate (Audit Committee) Environmental Governance Committee Distr Linneberg fin rear fob Kkparick ul Reboted ‘osan Boyes Deter Under ard water GonaleGuerera award ater ‘mera uo sept, ry heath, ‘onporats Goversance ratingagence
Slide 20: Get back to business
Y Get backto business ¥ Focus.on people > Board Goals ¥ Continue to improve corporate governance, implementing best practices in Chile and abroad Maintain controlsat al levels Al
Slide 21: Daniel Jiménez
Daniel Jiménez VP Sales lodine, Lithium and Industrial Chemicals
Slide 22: Lithium: Resources
> Lithium: Resources ~Aunidaotin ntureand widely etbuted around the work Producing sium chemicals has proven to be dfest and chabeging. Ove the lst few yeas several proacts Raveattempted 1 enter the matt > Chines rine producers ‘ala (Meunt atin) ne eerey ocate
Slide 23: Lithium: Lithium Tree
> Lithium: Lithium Tree al LUnhiom concentrates Tihvumcarbonate ] [Tivumbvdronde | [Inveniederiwtves Po essere r Here corer isomer: Tum corde Titiomtieet —] [raanicdervatves Fests Tee earn Steevie Ssrepranide PP} tssom trae Al
Slide 24: Lithium: Demand
> Lithium: Demand
Slide 25: Lithium: Demand Evolution
a > Lithium: Demand Evolution nee enue agest sat 205 te ltl
Slide 26: Lithium: Demand xEV Forecast
> Lithium: Demand xEV Forecast Al keer
Slide 27: Lithium: Supply 2016
> Lithium: Supply 2016 (chine/ausa co In 2016, the Chinese Ithium producers have produced thm chemals primary using SaMiscutenty the lowest costproducee Al
Slide 28: Lithium: SQM Average Prices
ct > Lithium: SQM Average Prices a \ Themain reasons forthe priceincresse in 2015 and 2016 re > Her than expected demandia China > Lower than expected supply, sow stat up OE.
Slide 29: Gerardo Illanes
Gerardo Illanes VP of Finance and IR
Slide 30: Balance Sheet as of June 30, 2016
> Balance Sheet as of June 30, 2016 sone fuss sy i
Slide 31: Prices vs. EBITDA Margin
> Prices vs. EBITDA Margin Cost savings initiatives have protected margins, despite lower pricing environment in most ‘busines lines Prices (Base 100) vs. EBITDA Margin (%) Prices 0100 g i a2 a2 Ha Ie mead MIS AS Hae sas Paahrice = serge Paice rend odie Pe Al |
Slide 32: Dividends vs. Net Financial Debt
> Dividends vs. Net Financial Debt 1000 amet inomemidends net Fan Det 00 £m 5 @ 10 hd re ee | $$sss 858885 8 Z 2eaee ee 88888? Cash flow generation allows SQM to pay dividends in excess of net income over las 3 years, wile simultaneously reducing net financial debt x
Slide 33: About SQM
About SQM SQM is an integrated producer and distributor of specialty plant nutrients, iodine, lithium, potassium-related fertilizers and industrial chemicals. Its products are based on the development of high quality natural resources that allow the Company to be a leader in costs, supported by a sp
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