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 (November 2022)
23 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, November 2022
Slide 1: Corporate Presentation November 2022
CORPORATE PRESENTATION November 2022
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 line LTM1 Revenues: US$8.7 billion | LTM Adjusted EBITDA2: US$4.7 billion LTM Adjusted EBITDA Margin2 : 55% | NFD/Adjusted EBITDA: 0x LITHIUM AND SPECIALTY PLANTS IODINE AND INDUSTRIAL POTASSIUM DERIVATIVES NUTRITION DERIVATIVES CHEMICALS % GRO
Slide 4: 2022 Business Highlights
2022 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: Doubling Lithium Production in 2022-2024 while Significantly Reducing Extractions Salar Futuro Ann
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: Global footprint and sales by region
Europe North America 9% 9% Latam & Asia & Carribean Others 4% 75% Commercial Offices Chile Joint Venture Production Plants 2% Mining Operations 1 Revenues for the nine months ended September 30, 2022 SQM – Corporate Presentation 8
Slide 9: 3Q2022 Financial Results
Adjusted Adjusted Revenue Gross Profit Net Income EBITDA EBITDA Margin US$2,958m US$1,633m US$1,100m US$1,660m 56% Previous % Change Previous % Change Previous % Change Previous % Change Previous % Change Q-on-Q 14% Q-on-Q 26% Q-on-Q 28% Q-on-Q 25% Q-on-Q 10% Y-on-Y 347% Y-on-Y 626% Y-on-Y 937% Y-on
Slide 10: 3Q2022 Business Highlights
3Q2022 Business Highlights Record High Sales Prices and Sales Volumes in Lithium Business Prices Hit Record High in Iodine Business, Fertilizers Prices Are Still Significantly Higher than Last Year On Track to Meet Long-Term Growing Demand in Lithium, Iodine and Nitrates Markets Through Sustainable
Slide 11: Lithium and Derivatives
LITHIUM AND DERIVATIVES Quarterly Sales Volumes (kMT) & Average Price (US$/kg) Global Lithium Chemical Market LTM1 Gross Profit: US$3.4B $54 $56 • Expected demand growth ~40% in LTM1 Revenues: US$6.1B 2022. • Strong demand growth and tight $38 supply have pushed prices to record high levels. 93% 5%
Slide 12: Meeting Lithium Demand Growth through Innovation and Capacity Increase
Meeting Lithium Demand Growth through Innovation Lithium Chemical Demand and Significant Capacity Increase Ahead of Schedule 2021 6% SQM Lithium Capacity Growth, MT 10% 14% ~500 kMT 25,000 70% 30,000 30,000 CAGR ~26% 2024E 210,000 180,000 180,000 2024E 5% 3% 120,000 17% >1,000 2021 2022 2023 2024 kM
Slide 13: Lithium capacity expansion projects in Chile, Australia and China
Chile Australia China Chile: lithium sulfate production to feed 30,000 MT China: Sichuan lithium lithium hydroxide refining hydroxide refinery of capacity in China. 30,000 MT, capex Australia: Mt. Holland lithium ~US$140m Chile: lithium carbonate and hydroxide project of 50,000 MT lithium hydroxide
Slide 14: Iodine and Derivatives
IODINE AND Global Iodine Market DERIVATIVES Quarterly Sales Volumes (kMT) & Average Price (US$/kg) • Expected market growth ~2-3% in 2022, primarily related to increased demand from X-ray contrast media and LCD LTM1 Gross Profit US$394M $64 applications. LTM1 Revenues: US$652M $55 • Market remains t
Slide 15: Iodine: Majority of new global supply to come from SQM
Iodine: Majority of new global supply to come from SQM Iodine Capacity growth 5,000 2,500 2,500 1,300 1,300 1,300 1,300 14,000 14,000 14,000 14,000 14,000 2022 2023 2024 2025 2026 Nueva Victoria Pampa Blanca Pampa Orcoma SQM – Corporate Presentation 15
Slide 16: Iodine and Nitrates Projects
Iodine and Nitrates Projects, total capex ~US1 billion, including maintenance TARAPACÁ REGION Pampa Orcoma Nueva Victoria Pampa Blanca, additional 1,300 MT of iodine and 100,000 MT of nitrates salts Tocopilla Pampa Orcoma, Pedro de Valdivia additional 5,000 MT of Coya Sur iodine and 500,000 MT ANTOF
Slide 17: Specialty Plant Nutrition
SPECIALTY PLANTS NUTRITION SPN Quarterly Sales Volumes (kMT) & Average Price (US$/MT) Global KNO3 Market $1,440 $1,410 • Global supply restrictions and LTM1 Gross Profit US$425M $1,310 significantly higher nitrogen production costs led to a significant LTM1 Revenues: US$1.1B price increase for potas
Slide 18: Potassium
POTASSIUM Potassium Quarterly Sales Volumes (kMT) & Average Price Global Potash Market (US$/MT) $1,030 • Potash prices started to decrease $960 LTM1 Gross Profit US$315M during 3Q22 as a result of weaker demand and high inventory across LTM1 Revenues: US$565M $805 the markets. $685 • Potassium marke
Slide 19: Industrial Chemicals
INDUSTRIAL CHEMICALS Industrial Chemicals Quarterly Sales Volumes (kMT) & Average Price (US$/MT) Global Industrial Chemicals Market LTM1 Gross Profit US$48M $1,593 LTM1 Revenues: US$164M • Global supply restrictions led to a significant price increase for potassium 7% $1,114 nitrate and sodium nitra
Slide 20: Ownership Structure
24% 16% Bank of New York Mellon (ADRS) Tianqi Ownership Structure1 10% Pampa Group Kowa Group 2% Chilean Pension Funds 22% Others 25% 1 According to the Shareholder Registry as of October 31, 2022 SQM – Corporate Presentation 20
Slide 21: Ownership & Dividends: Delivering Robust Growth and Profitability
Ownership & Dividends: Delivering Robust Growth and Profitability Dividend Policy2 Dividend Payout (% of Net Income) 100% 80% 60% Current Assets ≥ 2.5 2.0 1.5 Current Liabilities Current and Non−Current Liabilities−Cash & Cash Equivalents −Other Current Financial Assets ≤ 0.8 0.9 1.0 Total Equity If
Slide 22: Payments
Payments1 Li2CO3 LiOH KCL US$/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 Kelly O’Brien Head of Investor Relations kelly.obrien@sqm.com Irina Axenova Investor Relations irina.axenova@sqm.com
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