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) — Non-Deal Roadshow (October 2019)
26 slides from Sociedad Quimica Y Minera De Chile Sa Pfd Series A's roadshow presentation, October 2019
Slide 1: Non-Deal Roadshow Presentation
NON-DEAL ROADSHOW PRESENTATION October 2019
Slide 2: Cautionary Note Regarding Forward-Looking Statements
for human Dp progress CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Solutions @ SQM (NYSE: SQM, Santiago Stock Exchange: SQM-A, SQM-8) is a global company engaged irrstrategic industries for human development, such as health, food, clean energy and the technology that moves the world This pre
Slide 3: Corporate Strategy
ssrhuran CORPORATE STRATEGY Safety, Excellence, Integrity progress Be a global company with people committed to excellence, dedicated to the extraction of minerals and selectively integrated in the production and sale of products for the industries essential for human development So 8 © ee © Ensure
Slide 4: I 2 – iodine, NaNO 3 – sodium nitrate, KCL – potassium chloride, KNO
4 I2 – iodine, NaNO3 – sodium nitrate, KCL – potassium chloride, KNO3 – potassium nitrate, Li2CO3 – lithium carbonate, LiOH – lithium hydroxide
Slide 5: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • 46% 24% 19% 7% 3% 5
Slide 6: Sales volumes and price projections by business line
LITHIUM AND SPECIALTY PLANTS IODINE AND POTASSIUM INDUSTRIAL DERIVATIVES NUTRITION DERIVATIVES CHEMICALS1 LTM2 2025 LTM2 2025 LTM2 2025 LTM2 2025 LTM2 2025 Sales volumes, kMT 46.8 173(3) 1,062 1,300 13.2 16.2 620 782 82 200 Sales growth, 2% 2020: 65k MT Balanced with KNO3 CAGR % 3.5% 3.5% + 25k MT (
Slide 7: CAPEX 2019-2023: Sustainable organic growth & M&A
fsa) cousione CAPEX 2019-2023: Sustainable organic growth & M&A for human DD progress Total Capex!: USS$2.1 billion Caliche Ore Operations Total capex: ~US$800 million including ~US$260 million of maintenance - Potassium nitrate NPT Ill, NPT IV and sodium nitrate capacity increase - Sea water pipeli
Slide 8: LTM1
1,200 1,000 800 600 400 200 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM1 8
Slide 9: Lithium demand scenarios
914 744 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Li2CO3 Scenarios (CAGR~10-14%) Conservative LiOH (CAGR~30%) Optimistic LiOH (CAGR~33%) 9 1 EV = PHEV + BEV
Slide 10: Lithium industry: New challenge for lithium producers
(som) sowrions Lithium industry: New challenge for lithium producers QF The interconnected value chain means more complexity for lithium producers Product Flow { | MINING — REFINERY —> CATHODES a BATTERIES < = specificaticns/Requircments Flow * Interconnected value chain ($) BUSINESS DYNAMICS * Tech
Slide 11: SQM lithium: Mt. Holland project in Australia
fsa) trnuman SQM lithium: Mt. Holland project in Australia 7" e —— covalent LITHIUM * Mt. Holland, 50/50 JV with Wesfarmers * Estimated to contain 189 million tons of 1.50% LizO or 7.03 million tons of LCE (according to JORC Code! standards) * One of the world’s most significant hard rock lithium de
Slide 12: 2019 LTM contribution to gross profit and revenues
´ • • • • • 2019 LTM1 CONTRIBUTION TO: Gross profit Revenues Gross profit Revenues 24% 36% 7% 10% 2019 LTM1 CONTRIBUTION TO: 12
Slide 13: 2019 LTM contribution to gross profit and revenues
• • • • • • • • • • • 2019 LTM1 CONTRIBUTION TO: Gross profit Revenues Gross profit Revenues 2019 LTM1 CONTRIBUTION TO: 19% 17% 13 3% 3%
Slide 14: Responsible management of natural resources
Responsible management of natural resources. fsa) trnumen Work in harmony with the environment. progress Dp SQM is working on almost quadrupling lithium gY production without extracting more brine from the Salar de Atacama. Significant capacity increase in nitrates and @ iodine will include developm
Slide 15: Programs and Initiatives
• • • • • • • +150 • 15 PROGRAMS AND INITIATIVES
Slide 16: Our Customers — our main source of knowledge
fsa) soutions Our Customers — our main source of knowledge DD progress CUSTOMERS IN MORE THAN 110 COUNTRIES 20+ commercial offices SQM IS PRESENT IN THE KEY INDUSTRIES THAT MOVE THE WORLD AND CONTRIBUTE TO ITS DEVELOPMENT © COMMERCIAL EXPERIENCE @ TECHNICAL EXPERIENCE AND KNOW-HOW @ PRESENCE IN MATU
Slide 17: Board of Directors
ALBERTO SALAS GEORGES DE BOURGUIGNON HERNAN BÜCHI GONZALO GUERRERO CHAIRMAN DIRECTOR DIRECTOR DIRECTOR Mining engineer, Universidad de Chile Economist, Pontificia Universidad Católica de Civil Engineer, Universidad de Chile Lawyer, Universidad de Chile, SQM board member since 2018 Chile, MBA Harvard
Slide 18: Corporate Governance — Members
progress ) sutions Corporate Governance — 8 Members New board elected in the last annual shareholders meeting , April 25, 2019 3 Board Committees: Audit and Financial Risk Committee ("Directors’ Committee’) Safety, Health and Environment Committee Corporate Governance Committee To perform its functi
Slide 19: (1) Please see the full version of the document on our website at www.sqm.com
19 (1) Please see the full version of the document on our website at www.sqm.com
Slide 20: Appendix
Solutions for human progress Appendix
Slide 21: Ownership Structure, Dividend Policy
Ownership Structure1 Dividend Policy2 Dividends announced and paid in 2019 ≥ 21
Slide 22: Review of 1H2019 Results
Solutions for human progress Review of 1H2019 Results Revenue Contribution Gross Profit Contribution 1H2019/1H2018 1H2019/1H2018 1500 500 a7 1300 | 1157 1100 _-_ — = | | 18 288 (55) (29) (51) = — mw mR = 900 (116) (10) 4) (13) fy 700 500 . © © ©. & rs £ ¢ SC S Ro < Fy = ss we 2 ra eo we & ¥ Performa
Slide 23: Agreement with CORFO
Agreement with CORFO 15 million to neighboring communities of the Salar de Atacama Solutions for human DD progress Payments! Production Allowance LisCOs LIOH = Total production quota until 2030: 349,553 MT of LME USS/MT we USS/MT we = Reminder of original quota: 64,816 MT of LME < 4,000 6.80 6.80 =
Slide 24: Dec 18 Mar 19 Sep 18 Sep 18 Dec 18 Mar 19 Jun 19
3.0 2.7 8.1 7.4 7.7 7.1 2.4 2.7 2.3 6.0 Sep 18 Dec 18 Mar 19 Jun 19 Sep 18 Dec 18 Mar 19 Jun 19 37.3 36.8 23.4 4.3 4.3 3.9 2.8 1.6 2.5 1.0 Sep 18 Dec 18 Mar 19 Jun 19 Sep 18 Dec 18 Mar 19 Jun 19 1.3 0.8 1.5 1.2 0.5 0.5 0.6 1.0 1.0 0.9 Sep 18 Dec 18 Mar 19 Jun 19 Sep 18 Dec 18 Mar 19 Jun 19 24
Slide 25: SQM Corporate Policies & Procedures
& Dp sotutions SQM Corporate Policies & Procedures for human progress Code of Ethics Anti-Bribery and Anti-Corruption Policy Fair Competition Policy Information Protocol Code of Conduct for SQM ’‘s Business Partners Crime Prevention Model SQM Corporate Governance Policy Policy on Customary Transacti
Slide 26: Contact
Solutions for human progress a * Gerardo Illanes: CFO & VP of Corporate Finance gerardo.illanes@sqm.com ° Kelly O'Brien: Contact io epreneegncon information ° trina Axenova Investor Relations irina.axenova@sqm.com 4
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