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 (March 2010)
19 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, March 2010
Slide 1: SQM S.A. Corporate Presentation
SQM S.A. Corporate Presentation March 2010
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 2009 2008 • Revenues US$ M 1,437 1,774 • Operating Income US$ M 442 632 • Net Income US$ M 327 501 Specialty Plant Nutrition Iodine & Derivatives Lithium & Derivatives 50% world market share 25% world market share 31% world market share Revenues US$649 M Revenues
Slide 4: Unique Natural Resources
Unique Natural Resources Foundation of our competitive advantage Caliche Ore Salar Brines Nitrates Potassium Iodine Lithium NaNO3 + KCl = KNO3 + NaCl (salt) 4
Slide 5: Unique Natural Resources
Unique Natural Resources Reserves Nitrates* 36.7 Iodine* 0.3 Lithium** 0.9 Potassium Chloride** 29.4 Salar Brines *millions of metric tons based on proven and probable reservesCaliche Ore **millions of metric tons based on proven reserves Source: 2008 Form 20-F • Caliche • Our caliche reserves estim
Slide 6: Diversified Cash Flows
Diversified Cash Flows Diversification by markets, products and customers Europe 27% North Am. 27% Asia & Oceania Africa & Mid.East 20% Latin Am. 11% 15% • Geographic distribution of exports during 2009 • 84% of sales are exports • Sales in more than 100 countries – Local presence in 20 countries 6
Slide 7: Financial Performance
Financial Performance EBITDA (*) Net Financial Debt (**) US$ millions US$ millions • During 2009 the Company increased its financial debt to finance its capex program and working capital increases. *EBITDA: operating income + depreciation (not including amortization) ** N.F.D. : interest bearing deb
Slide 8: Financial Performance
Financial Performance N.F.D. / EBITDA Cash and Cash Equivalents US$ millions • Cash plus committed credit lines add financial flexibility 8
Slide 9: Potassium Chloride
Potassium Chloride SQM can capture growth potential in Potassium market SQM Sales Volumes of KCl* Thous. MT Source: SQM Estimates *MOP is KCl or potassium chloride, also known as potash. • The increase in sales of potassium-based fertilizers is expected to have a significant effect on SQM’s margins.
Slide 10: Specialty Plant Nutrition
Specialty Plant Nutrition Historical world demand growth has averaged 5% Competitive Advantages Demand Drivers Demand for high- High cost of land Water value crops 100% Natural Origin Fully Water Soluble scarcity Fast Absorption Chlorine Free Regulates Soil Acidity + + SPN Products Modern agricultur
Slide 11: Specialty Plant Nutrition
Specialty Plant Nutrition Main Uses of KNO3: Premium Crops Vegetables (41%) Industrialized Crops (28%) Fruits (22%) Limited supply and increasing demand provide strong support for our KNO3 markets • Potassium nitrate (KNO3) capacity will increase by 300,000 MT in the second half of 2010 • No other r
Slide 12: Iodine
Iodine World leader with 25% market share LCD screens X-ray Contrast Media Salt Iodine World Market 2009 • Total demand: 25,500 TM. • World demand CAGR (2000-2008): 6% • Demand declined in 2009 • Competitors: ∗ Japan 25% ∗ Others Chile(Cosayach, Atacama Min, ACF) 28% ∗ Recycling 14% ∗ USA 5% ∗ Other
Slide 13: Iodine
Iodine SQM Sales Volumes* Iodine Demand and Prices** Price (US$/kg) Demand (Thous. MT) Thous. MT * Sales of iodine and iodine derivatives 13 ** Demand for iodine; iodine-equivalent price
Slide 14: Lithium
Lithium World leader with 31% market share Market Evolution* Main Uses* 1997: 45,000 MT 2009: 68,500 MT SQM 31% China 29% • World demand CAGR (1997 - 2008): 6.7% Others 1% • In 2009 demand was negatively affected by the crisis • In 2008, SQM expanded lithium carbonate FMC 20% Chemetall capacity from
Slide 15: Lithium: Positive Outlook for Lithium Batteries
Lithium Positive Outlook for Lithium Batteries • Current estimates suggest that between 2009-2012 approximately 10 car manufacturers will introduce HEV/EV using lithium batteries • By the year 2020, we estimate that between 8-9 million electric/hybrid cars will be produced per year. • Roughly 60-80%
Slide 16: Industrial Nitrates
Industrial Nitrates Solar Salts • Sales in the solar salts segment could consume 100% of the increase in nitrates production projected by SQM for the coming years • Main projects: • ACS Cobra-Sener, Man Solar Millenium, Abengoa, SAMCA, Solar Reserves. • New demand for industrial nitrates for thermal
Slide 17: Capital Expenditure Plan
Capital Expenditure Plan Focus on our main businesses • Capacity expansion for potassium nitrate in 300,000 MT per year • Capacity expansion for potassium-based products in the Salar de Atacama close to 600,000 MT per year • Other projects aimed at improving yields and reducing costs • Capex 2010 es
Slide 18: Business Flexibility
Business Flexibility Caliche Ore Salar Brines Iodine NaNO3 KCl SOP Lithium potassium sulfate sodium nitrate potassium chloride/ potash KNO3 potassium nitrate Specialty Chem. Ind. Chem. S.P.N. Fertilizer S.P.N. Specialty Chem. • World leader in iodine and lithium businesses market growth and low cost
Slide 19: EBITDA Reconciliation
EBITDA Reconciliation Millions of US$ 2009 2008 EBITDA 593.6 742.7 Depreciation (less) (151.7) (110.6) Operating Income 441.9 632.1 Non-operating Loss (less) (37.0) (19.3) Income Taxes (less) (76.5) (107.9) Other Items (less) (1.3) (3.5) Net Income 327.1 501.4 19