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 (June 2014)
19 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's investor presentation, June 2014
Slide 1: The Worldwide Business Formula
THE WORLDWIDE BUSINESS FORMULA June 2014
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: Agenda
Agenda SQM at a Glance 1 2 Investment Highlights 3 Financial summary Photo: Evaporation Ponds, Salar de Atacama 3
Slide 4: SQM at a Glance
SQM at a Glance World Leader in Specialty Businesses: Potassium Nitrate, Iodine, lithium & Solar Salts Global Company: Based in Santiago, Chile with sales in more than 115 countries and offices in 20 countries. Financial Profile Revenue LTM: US$ 2.1 Billion EBITDA† LTM: US$ 756 Million E
Slide 5: SQM at a Glance
SQM at a Glance Fertilizers Specialty Chemicals Specialty Plant Potassium Iodine & Lithium & Industrial Nutrients Derivatives Derivatives Chemicals 48% of world KNO3 Strategically located 28% of world 27% of world 50% of world market share1 in South America market share1 market share1 indu
Slide 6: Investment Highlights
Investment Highlights 1. Unique and Abundant Natural Resources 2. Sales in Diverse Industries, Sold Globally 3. SPN: Largest Global Producer 4. Potassium: Uniquely located to supply major markets 5. Iodine: Leading player in strong market with diverse uses 6. Lithium: Lowest-cost producer 7. Industr
Slide 7: 1. Unique and Abundant Natural Resources
1. Unique and Abundant Natural Resources Highlights Caliche Ore Abundant natural resources enable long term planning Caliche ore is only found in Chile High-quality reserves, which allow low-cost and highly productive operations The world’s largest deposits of nitrate and iodine Salar Brines
Slide 8: 2. Sales in Diverse Industries, Sold Globally
2. Sales in Diverse Industries, Sold Globally Europe 22% North Am. 25% Asia & Other regions 23% SQM commercial office LatAm Joint venture 30% Production facilities Headquarters Products are sold in more than 115 countries through our worldwide distribution network Local presence in 20 countries
Slide 9: 3. SPN: Largest Global Producer
3. SPN: Largest Global Producer Potassium Nitrate: Industry Dynamics SQM Highlights Potassium Nitrate A world leader: 48% world market share1 Main Uses: Premium Crops1 Developed distribution network: Proximity to Others customers allows us to meet changing needs and 9% new market tendencies. F
Slide 10: 4. Potassium: Uniquely located to supply major markets
4. Potassium: Uniquely located to supply major markets Potassium Chloride: Industry Dynamics SQM Highlights Potassium chloride is the most commonly used Expansion of potassium-based products: potassium-based fertilizer. 9% Sold all over the world 2014 effective capacity expected to be 2.3 Gr
Slide 11: 5. Iodine: Leading player in strong market
5. Iodine: Leading player in strong market Industry Dynamics SQM Highlights Iodine is mainly used in human & animal health A world leader: 28% market share in 20131 and nutrition. Major uses include X-ray contrast Developed distribution and sales network: Can quickly media, LCD, pharmaceutical
Slide 12: 6. Lithium: Lowest-Cost Producer
6. Lithium: Lowest-Cost Producer Industry dynamics SQM Highlights Global demand: CAGR of 7% for the 2003-2013 Leading chemical lithium producer in the world and the period. lowest cost producer globally Demand driver: batteries. Future potential related Produce lithium carbonate, lithium hyd
Slide 13: 7. Industrial Chemicals: Dominant Player in a Niche Market
7. Industrial Chemicals: Dominant Player in a Niche Market Industry dynamics SQM Highlights Various traditional uses for industrial nitrates Operational flexibility with certain industrial sodium related to detergents, glass, metal treatment, water and potassium nitrate products treatment, and e
Slide 14: 8. Solid financial Position and experienced management
8. Solid financial Position and experienced management Overview1 SQM Finance Strategy Financial Policy establishes a maximum level of To be a strong and credible competitor consolidated leverage of 1.5x To be a strong credible supplier High levels of liquidity and capital resources as of Dec
Slide 15: Agenda
Agenda 1 SQM at a Glance 2 Investment Highlights Financial Summary 3 Photo: Port Facility, Tocopilla 15
Slide 16: Capital Expenditure Program
Capital Expenditure Program Capital Expenditures 2009 - 2013: US$2.0 Billion Capital Expenditure 2014: Approximately US$135 Potassium Nitrate Plant in Coya Sur (300,000 After intense investment during the past 5 years, MT/year) investment is expected to decrease in 2014 Increase Potassium prod
Slide 17: Financial Performance
Financial Performance Revenues Net Income 700 3.000 600 2.500 500 2.000 US$ Million US$ Million 400 1.500 300 1.000 200 500 100 0 0 2009 2010 2011 2012 LTM 2009 2010 2011 2012 LTM Note: 1 Figures are based on IFRS numbers. 17
Slide 18: Financial Performance
Financial Performance EBITDA/Ingresos Net Financial Debt / Adjusted EBITDA 46% 3 45% 41% 38% 2,5 36% 2 1,5 1,16 1,05 1 0,85 0,79 0,83 0,5 0 2009 2010 2011 2012 LTM 2009 2010 2011 2012 LTM Note: 1Figures are based on IFRS numbers. 2 Net Financial Debt: interest bearing debt net of cash and cash equiv
Slide 19: Investment Highlights
Investment Highlights 1. Unique and Abundant Natural Resources 2. Sales in Diverse Industries, Sold Globally 3. SPN: Largest Global Producer 4. Potassium: Uniquely located to supply major markets 5. Iodine: Leading player in strong market with diverse uses 6. Lithium: Lowest-cost producer 7. Industr
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