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 (September 2006)
18 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, September 2006
Slide 1: SQM Corporate Presentation
a _, THE WORLDWIDE SQM Corporate Presentation — 3
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 SQM at a glance (LTM)* • Revenues US$ 983 million • Operating Income US$ 213 million • EBITDA US$ 299 million • Net Income US$ 138 million Specialty Plant Nutrients Iodine & derivatives Lithium & derivatives 50% of revenues 20% of revenues 11% of revenues 49% wor
Slide 4: Natural Resources
Natural Resources Caliche Ore Iquique Salar Brines Iris Nva. Victoria Chile Nitrates Iodine Potassium Tocopilla Lithium María Elena Coya Sur Pedro de Valdivia Pampa Blanca Salar del Carmen Antofagasta Salar de Atacama Caliche Ore Salar Brines Productive Facilities
Slide 5: Diversified Cash Flows
Diversified Cash Flows Sales in more than 100 countries - Local presence in 22 countries 17% 30% 6% 15% 15% 17% Customer and industry diversification Fruits, greens, tobacco, x-ray contrast media, biocides, human & animal nutrition, batteries, greases, glass, detergents... Production facilities
Slide 6: Strengths
Strengths • Unique and vast natural resources Low cost producer & growth potential • International sales network • Diversified sales: geographically and by industry • Product development & technology know how Worldwide leader in three growing businesses
Slide 7: Challenges
Challenges • Capacity utilization in the short and medium term Capacity increase projects • High cost of the energy and raw materials • Cost reduction and productivity increase • Environmental restrictions and regulations Project SQM into the next 10 years
Slide 8: SQM Strategy
SQM Strategy Strengthen Worldwide Leadership in Specialty Plant Nutrition, Iodine and Lithium • Pursue new product development and market expansions • Mantain continuous efforts on cost reduction • Evaluate new ventures and acquisitions within the core businesses • Conservative and sound financial p
Slide 9: Specialty Plant Nutrients
Specialty Plant Nutrients 49% potassium nitrate world market share Specialty plant nutrients revenues 530 488 486 480 430 416 380 US$ millions 346 330 281 280 230 180 Specialty plant nutrients World demand CAGR (99-05): 4.7% * 130 2002 2003 2004 2005 2006 LTM Main competitors:Haifa Chemicals (Isra
Slide 10: Specialty Plant Nutrients Demand
Specialty Plant Nutrients Demand High value crops demand High cost of land Water scarcity Modern agric. techiques Specialty Plant Nutrients Fully Water Soluble & Chlorine Free
Slide 11: Iodine
Iodine 35% of world market share / Main iodine salts producer Market Evolution * 1990: 13,000 Tons. 2005: 25,500 Tons. SQM SQM 26% 35% Others Chile Others Chile 23% Others 6% 13% Japan 55% Others Japan 7% 24% Recycling 10% World demand CAGR (00-05): 6.8% *SQM estimates **Includes DSM´s iodine busi
Slide 12: Iodine
Iodine Main uses* Iodine main growth drivers: X-ray Contrast Media Biocides & Iodophors 22% 20% X-ray contrast media LCD applications have tripled Pharmaceutical China consumption Others 8% IF5/RFI for fabrics treatment 15% LCD 4% Fluor-Q Nutrition 7% Nylon 13% 9% *SQM estimates
Slide 13: Lithium
Lithium 36% of world market share Market Evolution* SQM 36% SQM 16% 1997 2005 45,000 Tons. 76,000 Tons. Lithium main competitors FMC World demand CAGR (00-05): 7.4% Chemetall *SQM estimates China
Slide 14: Lithium
Lithium Main uses* Lithium growth drivers Pharmaceutical Explosive growth in batteries Batteries 5% Greases Increased demand for use in A/C 20% 17% New applications Pharmaceuticals Frits 12% New batteries technology Others 20% Glass Polymer Aluminium A/C 9% 4% 5% 7% *SQM estimates
Slide 15: Financial Performance
Financial Performance Consolidated Revenues Net Income 1100 150 138,4 983 1000 135 896 900 120 113,5 800 776 105 692 US$ millions US$ millions 700 90 74,2 600 75 500 60 46,8 400 45 300 30 200 15 100 0 2003 2004 2005 2006 LTM 2003 2004 2005 2006 LTM During the last 22 quarters, net income has been hi
Slide 16: Financial Performance
Financial Performance Operating Margin EBITDA 30% 340 320 25% 299 22% 300 20,2% 280 20% 251 260 US$ millions 16,0% 240 15% Times 12,6% 220 200 187 10% 180 160 149 5% 140 120 0% 100 2003 2004 2005 2006 LTM 2003 2004 2005 2006 LTM EBITDA: Operating income + Depreciation Operating Margin: Operating inc
Slide 17: Financial Performance
Financial Performance Net Financial Debt Net Debt / EBITDA 500 3,5 450 414 3,0 400 350 2,5 2,0 Times 300 2,0 253 1,7 242 250 1,4 1,5 200 144 1,0 150 1,0 0,8 100 0,5 50 0 0,0 2003 2004 2005 3Q 2006 2002 2003 2004 2005 3Q 2006 Net Financial Debt: Interest bearing debt – (cash and cash equivalents)
Slide 18: Investment Highlights
Investment Highlights Unique natural resources Low cost producer and integrated production process World leadership in growing specialty markets Market, product and client diversification International commercial network Conservative financial position Focus in cash flow generation U
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