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) — Q2 2017 Earnings Presentation

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

1. Slide 1: Second Quarter 2017 Earnings Presentation

   Second 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: 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

4. Slide 4: 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$853 million  Moody’s: Baa1  EBITDA Margin LTM: ~ 41%  Standard and Poor’s BBB (

5. Slide 5: Results

   Results Revenues Net Income(1)(2) 2,500 2,203 500 467 2,014 2,082 1,939 2,000 1,728 400 341 296 US$ Million US$ Million 1,500 300 278 213 1,000 200 500 100 0 0 2013 2014 2015 2016 LTM Jun 2013 2014 2015 2016 LTM Jun 2017 2017 Higher sales volumes in all business lines in 1H2017 and continued high l

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

   Results Revenue Contribution Gross Profit Contribution 6M2017/6M2016 6M2017/6M2016 US$ Million US$ Million SPN Iodine Lithium I. Chem. Potassium P Q Impact of higher volumes outweighs lower prices in Iodine and IQ business lines. Prices increased in lithium and potassium business lines. Second Quar

7. Slide 7: Market Outlook

   Market Outlook Potassium Market: Average price showed slight increase in 1H2017 compared to 1H2016, flat prices for the rest of 2017. Demand growth in 2017 ~2 million MT to over 60 million MT/year Potassium Nitrate: Increased demand and decreased supply resulted in the strongest sales volumes duri

8. Slide 8: Capital Expenditures & Investments

   Capital Expenditures & Investments Historical maintenance CAPEX ~US$100 million Growth Plans 2016-2018: Lithium Hydroxide Expansion to 13.5k MT: ~US$30 million 2017-2018: Potassium Nitrate Expansion to 1.5m MT: ~US$100 million 2017-2018: Lithium Carbonate Expansion to 63k MT: ~US$50 million 201

9. Slide 9: Other Relevant Topics

   Other Relevant Topics Ownership Structure(1) SQM Business Opportunities  Strong demand growth in lithium market. Lithium carbonate production expansion to 63k MT/year  JV to develop Caucharí-Olaroz lithium project, 25k MT/year 1st stage  JV to develop Mt. Holland (Australia) lithium project, 40k

10. Slide 10: 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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