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 (June 2006)
19 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, June 2006
Slide 1: Corporate Presentation
Corporate Presentation June 2006
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 US$ 964 million • Operating Income US$ 205 million • EBITDA US$ 286 million • Net Income US$ 134 million Specialty Plant Nutrients Iodine & derivatives Lithium & derivatives 52% of revenues 19% of revenues 10% of revenues 49% wor
Slide 4: Natural Resources
Natural Resources Caliche Ore Iquique Salar Brines Nva. Victoria Iris Chile Nitrates Iodine Potassium Tocopilla Lithium María Elena Coya Sur Pedro de Valdivia Pampa Blanca Salar del Carmen Antofagasta Salar de Atacama 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% 15% 15% 17% Customer and industry diversification Fruits, greens, tobacco, x-ray contrast media, biocides, human & animal nutrition, batteries, greases, glass, detergents... Production facilities Chil
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 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 and raw materials • Cost reduction and productivity increase • Environmental restrictions and regulations 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 49% potassium nitrate world market share Specialty plant nutrients revenues 530 500 488 480 430 416 380 US$ millions 346 330 281 280 230 180 Specialty plant nutrients World demand CAGR (99-05): 4.7% * 130 2002 2003 2004 2005 2006 LTM Main competitors:Haifa Chemicals (Israel
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 Fully Water Soluble & Chlorine Free
Slide 11: Iodine
Iodine 38% of world market share / Main iodine salts producer Market Evolution * Others SQM** SQM 9% 38% 26% Others 13% Others Japan Japan Chile 55% 32% Others Chile 6% 21% Others 1990 2005 13,000 Tons. 25,550 Tons. World demand CAGR (00-05): 6.8% *SQM estimates **Includes DSM´s iodine business acqu
Slide 12: Iodine
Iodine Main uses* Iodine main growth drivers: X-ray Contrast media Biocides X-ray contrast media 23% 20% LCD applications have tripled Electronics 4% China consumption Others IF5/RFI for fabrics treatment 8% Organic compounds 12% Nutrition 8% Pharmaceutical Chemicals 17% 8% *SQM estimates
Slide 13: Lithium
Lithium 36% of world market share Market Evolution* SQM 36% SQM 16% 1997 2005 45,000 Tons. 76,000 Tons. Lithium main competitors FMC World demand CAGR (00-05): 7.4% Chemetall China *SQM estimates
Slide 14: Lithium
Lithium Main uses* Lithium growth drivers Batteries Greases 17% Explosive growth in batteries 20% Increased demand for use in A/C Frits 12% New applications Pharmaceuticals Others 20% Glass New batteries technology 9% Polymer A/C 4% Medicine Aluminum 7% 5% 5% *SQM estimates
Slide 15: Financial Performance
Financial Performance Consolidated Revenues Net Income 1000 964 134,3 135 896 900 120 113,5 800 776 105 692 700 90 US$ millions US$ millions 600 74,2 75 500 60 46,8 400 45 300 30 200 15 100 0 2003 2004 2005 2006 LTM 2003 2004 2005 2006 LTM During the last 21 quarters, net income has been higher than
Slide 16: Financial Performance
Financial Performance Operating Margin EBITDA 30% 300 286 280 25% 260 251 21% 20,2% 240 20% US$ millions 16,0% 220 15% 200 Times 12,6% 187 180 10% 160 149 140 5% 120 0% 100 2003 2004 2005 2006 LTM 2003 2004 2005 2006 LTM EBITDA: Operating income + Depreciation Operating Margin: Operating income / Re
Slide 17: Financial Performance
Financial Performance Net Financial Debt Net Debt / EBITDA 500 3,5 450 418 3,0 400 350 2,5 2,0 Times 300 2,0 253 242 1,7 250 1,4 1,5 200 144 1,0 150 1,0 0,8 100 0,5 50 0 0,0 2003 2004 2005 2Q 2006 2002 2003 2004 2005 2Q 2006 Net Financial Debt: Interest bearing debt – (cash and cash equivalents)
Slide 18: Financial Performance
Financial Performance ADR B NYSE Price ADR B NYSE Quarterly Daily Avg. Transactions 7,0 6,4 130 6,0 US$ million per day ADR B NYSE 5,5 110 5,0 US$ / ADR B 90 4,0 3,9 4,0 3,6 70 3,0 50 2,0 1,8 30 1,0 0,8 0,6 10 0,0 May 05 May-06 Jul 04 Jul 04 Aug 04 Jan 05 Apr 05 Jun 05 Aug 05 Jan-06 Apr-06 Jun-06 Se
Slide 19: Investment Highlights
Investment Highlights Unique natural resources Low cost producer and integrated product process World leadership in growing specialty markets Market, product and client diversification International commercial network Conservative financial position Focus in cash flow generation US-dollar based reve