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 (May 2023)
23 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, May 2023
Slide 1: Corporate Presentation May 2023
CORPORATE PRESENTATION May 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 LTM1 Revenues: US$11 billion | LTM1 Adjusted EBITDA2: US$5.7 billion LTM1 Adjusted EBITDA Margin2 : 52% | NFD/Adjusted EBITDA2: 0.1x LITHIUM AND SPECIALTY PLANTS IODINE AND INDUSTRIAL POTASSIUM DERIVATIVES NUTRITION DERIVATIVES CHEMICALS
Slide 4: LTM Business Highlights
LTM1 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: Increasing Lithium Production in 2023-2024 while Significantly Reducing Extractions Salar Futuro A
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 map
Europe 9% North America 9% Asia & Others 78% Latam & Carribean 3% Commercial Offices Joint Venture Chile Production Plants 2% Mining Operations 1 Revenues for the last twelve months ended March 31, 2023 SQM – Corporate Presentation 8
Slide 9: 1Q2023 Results: Revenue, Gross Profit, Net Income, EBITDA
Adjusted Adjusted Revenue Gross Profit Net Income EBITDA EBITDA Margin US$2,264m US$1,066m US$750m US$1,088m 48% % Change % Change % Change % Change % Change Q-on-Q (28)% Q-on-Q (35)% Q-on-Q (35)% Q-on-Q (35)% Q-on-Q (10)% Y-on-Y 12% Y-on-Y (9)% Y-on-Y (6)% Y-on-Y (8)% Y-on-Y (18)% Trend Trend Trend
Slide 10: Results Key Drivers 1Q2023 vs 1Q2022
Results Key Drivers 1Q2023 vs 1Q2022 Iodine: Record-high sales prices (40%) and high sales volumes (12%) Lithium: Lower sales volumes (-15%), partially offset by higher year-on- year average sales prices (34%) Lithium: Gross margin (-20%) affected by increased cost of sales driven by higher lease pa
Slide 11: Lithium and Derivatives: Sales Volumes and Prices
LITHIUM AND DERIVATIVES Quarterly Sales Volumes (kMT) Global Lithium Chemical Market & Average Price (US$/kg) • Slow demand and high inventory levels in the $59 LTM1 Gross Profit: US$4.4B $56 battery value chain at the beginning of 2023 $54 impacted customer purchasing activity. $51 LTM1 Revenues: U
Slide 12: Meeting Lithium Demand Growth through Innovation and 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 projects in Chile, China and Australia
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: capacity expansions: ~US$140m hydroxide project of 50,000 MT li
Slide 14: Iodine and Derivatives: Sales Volumes and Prices
IODINE AND Global Iodine Market DERIVATIVES Quarterly Sales Volumes (kMT) & Average Price (US$/kg) • Flat global market growth in 2023, with contrast media segment growing close $70 to 7%. LTM1 Gross Profit US$539M $69 LTM1 Revenues: US$842M $64 • Market remains tight, prices hit a record high, and
Slide 15: Iodine and Nitrates Projects
Iodine and Nitrates Projects, total capex 2023-2025: ~US1.2 billion, including maintenance: TARAPACÁ REGION Pampa Orcoma Nueva Victoria Pampa Blanca, additional 1,300 MT of iodine and 100,000 MT of nitrates salts Tocopilla Greenfield projects, Pedro de Valdivia additional 2,500 MT of Coya Sur iodine
Slide 16: Specialty Plant Nutrition: Global KNO3 Market
SPECIALTY PLANTS NUTRITION SPN Quarterly Sales Volumes (kMT) & Average Price (US$/MT) Global KNO3 Market $1,440 $1,310 $1,410 $1,380 $1,310 • Lower potassium prices put LTM1 Gross Profit US$399M pressure on KNO3 price. LTM1 Revenues: US$1.1B $940 • Some demand recovery is expected in the agricultura
Slide 17: Potassium: Global Potash Market
Potassium Quarterly Sales Volumes (kMT) & Average Price POTASSIUM (US$/MT) $1,030 Global Potash Market $960 • Potash prices continued to LTM1 Gross Profit US$212M $805 $820 decrease during 1Q23 as a result of weaker demand and high LTM1 Revenues: US$410M $685 inventory across the markets. $630 • Pot
Slide 18: Industrial Chemicals Market
INDUSTRIAL Industrial Chemicals Quarterly Sales Volumes (kMT) CHEMICALS & Average Price (US$/MT) Global Industrial Chemicals Market $1,595 LTM1 Gross Profit US$52M • Industrial potassium nitrate LTM1 Revenues: US$205M $1,235 market prices should follow $1,115 the trends seen in the $910 $930 agricul
Slide 19: Debt Maturities: Prudent Financial Management & Stable Investment Grade Rating
Debt Maturities: Prudent Financial Management & Stable Investment Grade Rating Maturity debt profile1 as of Match 31, 2023 (US$ million) 800 700 700 600 500 400 466 466 378 400 300 200 100 151 135 16 16 16 8 10 68 - Bonds & Loans maturity Moody’s: Baa1 | Standard & Poor’s: BBB+ 1 Including amortizat
Slide 20: Ownership Structure
21% 17% 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 April 30, 2023 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 to Corfo and community contributions
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 Irina Axenova Head of Investor Relations irina.axenova@sqm.com Isabel Bendeck Investor Relations isabel.bendeck@sqm.com
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