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 (February 2024)
19 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, February 2024
Slide 1: Corporate Presentation February 2024
CORPORATE PRESENTATION February 2024
Slide 2: Customary note regarding 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: Customary note regarding “anticipate,” “plan,” “believe,” “est
Slide 3: SQM at a Glance: Strong Performance Across All Business lines
SQM at a Glance: Strong Performance Across All Business lines FY2023 Revenues: US$7.5 billion | FY2023 Adjusted EBITDA1: US$3.2 billion FY2023 Adjusted EBITDA Margin1 : 43% | NFD/Adjusted EBITDA1: 0.7x LITHIUM AND SPECIALTY PLANTS IODINE AND INDUSTRIAL POTASSIUM DERIVATIVES NUTRITION DERIVATIVES CHE
Slide 4: Responsible Business Strategy
Delivering Sustainable Solutions to Global Challenges Responsible Responsible Processes Research and Development Development, research and innovation. Business Reduce our ecological footprint and protect Create unique solutions for global markets that enable us to enhance the compaty´s value in a su
Slide 5: Our commitment to Sustainability
Our commitment to Sustainability Emissions reduction Continental water reduction Target to produce carbon neutral Member of the United Nations Global Compact, 40% by 2030 and 65% by 2040 lithium by 2030, and other products Global Battery Alliance, DJSI World, DJSI Chile y by 2040. DJSI MILA Pacific
Slide 6: Global Presence and Diversified Sales Channels
Global Presence and Diversified Sales1 Channels Europe North America 11% 10% Asia & Others 73% Latam & Carribean 3% Commercial Offices Chile Joint Venture Production Plants 2% Mining Operations 1 Revenues for the last twelve months ended December 31, 2023 SQM – Corporate Presentation 6
Slide 7: Summary of Fourth Quarter 2023 Results
Summary of Fourth Quarter 2023 Results Adjusted Adjusted Revenue Gross Profit Net Income EBITDA EBITDA Margin US$1,312m US$401m US$203m US$428m 33% % Change % Change % Change % Change % Change Q-on-Q (29)% Q-on-Q (47)% Q-on-Q (58)% Q-on-Q (46)% Q-on-Q (24)% Y-on-Y (58)% Y-on-Y (76)% Y-on-Y (82)% Y-o
Slide 8: Results Key Drivers 4Q2023 vs 4Q2022
Results Key Drivers 4Q2023 vs 4Q2022 Lithium: Significantly higher sales volumes (19%), significantly lower year- on-year average sales prices (-73%) Iodine: Higher average sales prices (6%) partially offset by lower (-3%) sales volumes SPN: Higher sales volumes (13%), lower year-on-year average sal
Slide 9: Lithium and Derivatives: Long-Term Fundamentals Support Demand Growth
Lithium and Derivatives: Long-Term Fundamentals Support Demand Growth LITHIUM AND DERIVATIVES Quarterly Sales Volumes (kMT) Global Lithium Chemical Market & Average Price (US$/kg) $59 FY2023 Gross Profit: US$2.2B $54 $56 • We expect the global lithium market demand $51 FY2023 Revenues: US$5.2B to gr
Slide 10: Lithium and Derivatives: Fully integrated lithium producer from natural resource to chemical refining
Lithium and Derivatives: Fully integrated lithium producer from natural resource to chemical refining with full traceability Chile Australia China Chile: lithium sulfate production to feed lithium hydroxide refining capacity in China. China: SQM´s lithium hydroxide refinery + tolling Chile: capacity
Slide 11: Iodine and Derivatives: Capturing Segment Growth in High Price Environment
Iodine and Derivatives: Capturing Segment Growth in High Price Environment IODINE AND Global Iodine Market DERIVATIVES Quarterly Sales Volumes (kMT) & Average Price (US$/kg) • Global iodine demand decreased almost 4% in 2023. We expect to see some $69 $70 $69 demand recovery during 2024. FY2023 Gros
Slide 12: Nitrates and Iodine Operations: SQM to maintain leading position
Nitrates and Iodine Operations: SQM to maintain leading position in nitrates and iodine industries TARAPACÁ REGION Pampa Blanca, additional Pampa Orcoma 1,300 MT of iodine and 100,000 MT of nitrates Nueva Victoria salts Greenfield projects, additional 2,500 MT of iodine and 250,000 MT of nitrates sa
Slide 13: Specialty Plant Nutrition: Demand and Sales Volumes Recovery
Specialty Plant Nutrition: Demand and Sales Volumes Recovery SPECIALTY PLANTS NUTRITION SPN Quarterly Sales Volumes (kMT) & Average Price (US$/MT) Global KNO3 Market $1,440 $1,410 $1,380 $1,310 $1,310 • The demand recovery seen during FY2023 Gross Profit US$222M 4Q23 could continue into 2024 with FY
Slide 14: Potassium: Lower Market Prices and Demand Recovery
Potassium: Lower Market Prices and Demand Recovery Potassium Quarterly Sales Volumes (kMT) & Average Price POTASSIUM (US$/MT) $1,030 $960 Global Potash Market FY2023 Gross Profit US$59M $805 $820 FY2023 Revenues: US$279M $685 • Potassium market demand could $630 increase by ~5M tons in 2024 vs $530
Slide 15: Industrial Chemicals: Stable Outlook
Industrial Chemicals: Stable Outlook INDUSTRIAL Industrial Chemicals Quarterly Sales Volumes (kMT) CHEMICALS & Average Price (US$/MT) Global Industrial Chemicals Market $1,600 $1,520 FY2023 Gross Profit US$34M • Industrial potassium nitrate FY2023 Revenues: US$175M $1,240 market prices remains high
Slide 16: Ownership & Dividends: Ownership Structure
Ownership & Dividends: Delivering Robust Growth and Profitability Bank of New York Mellon (ADRS) 21% 15% Tianqi Ownership Structure1 14% Pampa Group Kowa Group 2% Chilean Pension Funds 22% Others 26% 1 According to the Shareholder Registry as of January 31, 2024 SQM – Corporate Presentation 16
Slide 17: Ownership & Dividends: Dividend Policy
Ownership & Dividends: Delivering Robust Growth and Profitability Dividend Policy1 Dividend Payout (% of Net Income) 100% 80% 60% Current Assets ≥ 2.5 2.0 1.5 Current Liabilities Current and Non−Current Liabilities−Cash & Cash Equivalents −Other Current Financial Assets ≤ 0.8 0.9 1.0 Total Equity If
Slide 18: Agreement with CORFO
Agreement with CORFO Payments Li2CO3 LiOH KCL US$/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 –
Slide 19: Contact information
Contact information Irina Axenova Head of Investor Relations irina.axenova@sqm.com Isabel Bendeck Investor Relations isabel.bendeck@sqm.com
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