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 (April 2004)
25 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, April 2004
Slide 1: SQM Corporate Presentation
www.sqm.com SQM Corporate Presentation April 2004 1
Slide 2: Agenda
www.sqm.com Agenda • Overview • Financial & Operating Highlights • Business Areas • Investment Highlights 2
Slide 3: Business Description
www.sqm.com Business Description • SQM is an integrated producer and worldwide distributor of specialty fertilizers, iodine and lithium. • Its products are obtained from the processing of unique natural resources that allow the Company to be one of the lowest cost producers and the leader in the mar
Slide 4: Corporate Strategy
www.sqm.com Corporate Strategy To strengthen its position as the worldwide leader in the specialty fertilizers, iodine and lithium businesses, in which the Company has clear and sustainable competitive advantages. Overview Fin. & Op. Highlights Business Areas Invest. Highlights 4
Slide 5: Corporate Strategy
www.sqm.com Corporate Strategy To achieve its strategy, SQM will • Concentrate on its core businesses • Maintain a continuous effort on cost reductions • Work on the development of new markets, products and applications • Evaluate acquisitions, joint ventures and alliances • Maintain a conservative
Slide 6: Natural Resources
www.sqm.com Natural Resources Iquique Caliche Caliche Ore Nva. Victoria Chile Nitrates Tocopilla Iodine María Elena Sulfate Pedro de Valdivia Salar Brines Pampa Blanca Potassium Antofagasta Salar Lithium Boron Caliche Ore Salar Brines Productive Facilities Overview Fin. & Op. Highlights Business Are
Slide 7: Productive Process
www.sqm.com Productive Process • SQM benefits from an integrated production process Caliche Ore Salar Salar brines brines Sodium Sodium Potassium Potassium Lithium Lithium Potassium Potassium Boric Boric Iodine Iodine Nitrate Sulfate Chloride Chloride Carbonate Carbonate Sulfate Sulfate Acid Acid Io
Slide 8: Geographic Diversification
www.sqm.com Geographic Diversification • International commercial network: Sales in more than 100 countries 17% 28% 6% 14% 12% 23% • Commercial offices in more than 20 countries Overview Fin. & Op. Highlights Business Areas Invest. Highlights 8
Slide 9: Diverse Customer Base
www.sqm.com Diverse Customer Base Specialty Fertilizers Industrial Chemicals 9 Fruits 9 Glass 9 Vegetables 9 Explosives 9 Coffee 9 Detergents 9 Tobacco 9 Optic Fiber Iodine Lithium 9 X-Ray Cont. Media 9 Batteries 9 Human & Animal Feed 9 Ceramics 9 Disinfectants 9 Air-conditioning 9 Chemical Uses 9 G
Slide 10: Shareholder Structure
www.sqm.com Shareholder Structure Series A: 14.3 millions ADR eq. Series B: 12.0 millions ADR eq. Others 11.6% ADR 24.4% Israel Chem. Calichera 37.5% Others 13.4% 40.5% PCS AFP 37.5% 35.1% As of February 27, 2004 As of February 27, 2004 • Board of directors: 7 members elected by series A - 1 member
Slide 11: Financial Highlights
www.sqm.com Financial Highlights Operational Income 100 • Total Revenues of 87,3 82,7 US$ 691 million 80 74,6 67,4 60 Iodine Industrial 12% Lithium 40 Chem. 7% 11% 20 Others 2000 2001 2002 2003 14% 500 Net Financial Debt 411 400 344 Pot. Chloride 300 282 6% 253 Specialty Fert. 200 50% 100 2000 2001
Slide 12: Net Income Evolution
www.sqm.com Net Income Evolution • 11 Quarters with higher results vs. same period of previous year 14 13,3 12,0 12 11,6 11,6 10,8 10,6 9,6 9,8 9,8 10 9,2 9,6 9,2 8,4 8,1 8,4 US$ Millions 8,1 8 7,1 7,1 6,5 6,2 6,2 6 4,7 4 2 0 2Q01 3Q 4Q 1Q02 2Q 3Q 4Q 1Q03 2Q 3Q 4Q 2000 / 2001 2001 / 2002 2002 / 2003
Slide 13: Net Income Evolution
www.sqm.com Net Income Evolution 60 50 46,8 40,2 40 US$ millions 30,1 30 27,1 20 10 0 2000 2001 2002 2003 Overview Fin. & Op. Highlights Business Areas Invest. Highlights 13
Slide 14: Comparative Highlights
www.sqm.com Comparative Highlights US$ millions 2003 2002 Revenues 691.8 553.8 Operating Income 87.3 82.7 Net Income/ADR (US$) 1.78 1.53 EBITDA / Net financial expenses 7.1 5.25 Total Assets 1,364 1,322 Revenues increased 25% Operating income increased 6% Net income/ADR increased 16% Interest covera
Slide 15: Business Areas
www.sqm.com Business Areas • SQM’s core businesses are: Specialty Fertilizers Iodine Lithium • In each of these businesses, SQM : 9 Is the largest world producer 9 Has the largest installed capacity 9 Is one of the lowest cost producers Overview Fin. & Op. Highlights Business Areas Invest. Highlight
Slide 16: Specialty Fertilizers
www.sqm.com Specialty Fertilizers Revenues of US$346 millions 48% of potassium nitrate world market • Potassium nitrate, sodium potassium nitrate, sodium nitrate • Potassium Sulfate • Specialty Blends • 100% Natural Product • Chlorine Free • Fully water soluble • Rapid and effective absorption • Red
Slide 17: Specialty Fertilizers
www.sqm.com Specialty Fertilizers • Growth drivers 9 Water scarcity 9 Cost of the land 9 Need of quality in high 9 Modern agricultural techniques: value crops Greenhouse, drip irrigation & hydroponics SQM’s Potassium Nitrate and Sodium Potassium Nitrate Sales Volumes 700 600 CAGR 1988-2003: 6.0% Th.
Slide 18: Specialty Fertilizers Uses
www.sqm.com Specialty Fertilizers Uses Others 8% Fruits 20% Vegetables 38% Indust. Crops 34% 9 Increasing volumes (USA - Europe) Outlook 9 Slight price increase 9 PCS Yumbes acquisition Overview Fin. & Op. Highlights Business Areas Invest. Highlights 18
Slide 19: Iodine and Derivatives
www.sqm.com Iodine and Derivatives Revenues of US$84.5 millions 28% of World Market Main iodine salts producer • Iodine & derivatives is a Growing market Market Share SQM 26% SQM 28% Total as of 1990: Total as of 2003: CAGR 1999 - 2003: 5.0% 13,040 Tons. 21,800 Tons. 1990 - 2003: 3.6% Overview Fin.
Slide 20: Iodine and Derivatives Uses
www.sqm.com Iodine and Derivatives Uses Others Contrast 15% media 23% Human nutrition 8% Pharmac Iodoph-Bioc. 8% 17% Org. Chemicals Compounds 17% 12% Positive market perspective 9 X-Ray contrast media 9 Biocides 9 Fungicides 9 Agrochemicals Overview Fin. & Op. Highlights Business Areas Invest. Highl
Slide 21: Lithium and Derivatives
www.sqm.com Lithium and Derivatives Revenues of US$49.6 millions 43% of lithium units world market supply • Lithium & derivatives is a Growing market Market Share SQM 16% SQM 43% Total as of 1997 Total as of 2003 45,000 Tons. 62,000 Tons. CAGR 1997 - 2003: 3.9% Overview Fin. & Op. Highlights Busines
Slide 22: Lithium and Derivatives Uses
www.sqm.com Lithium and Derivatives • Positive market perspective Uses 9 Pharmaceuticals 9 Batteries Frits Catalysts Glass 9 Grease 9 Ceramics 10% 13% 8% Air Cond. Grease 11% 17% Batteries 12% Others 29% Slight volume increase Outlook Slight price increase Integration towards lithium derivativ
Slide 23: Investment Highlights
www.sqm.com Investment Highlights • Unique Natural Resources • Lowest Cost Producer • World leadership in growing specialty markets • Conservative financial position • Focus in cash flow generation • International Commercial Network • US-dollar based revenues • Market, product and client diversifica
Slide 24: Contact Information
www.sqm.com Contact Information Ricardo Ramos Chief Financial Officer (56-2) 425 2485 rramos@sqm.cl Patricio Vargas Head of Investor Relations (56-2) 425 2274 pvargas@sqm.cl Ricardo Levy Investor Relations (56-2) 425 2074 rlevy@sqm.cl SQM S.A. El Trovador 4285, 6th floor Las Condes-Santiago, Chile w
Slide 25: Forward-looking statements
www.sqm.com SQM 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 n