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Transcription:

June 2015

> 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 not historical facts, are forward-looking statements as that term is defined under Federal Securities Laws. Any forward-looking statements are estimates, reflecting the best judgment of SQM based on currently available information and involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. Risks, uncertainties, and factors that could affect the accuracy of such forward-looking statements are identified in the public filing made with the Securities and Exchange Commission, and forward-looking statements should be considered in light of those factors. 2

1 > INVESTMENT HIGHLIGHTS

> SQM at a Glance World Leader in Specialty Businesses: Potassium Nitrate, Iodine, Lithium & Solar Salts Financial Profile Revenue LTM (1) : US$ 1.9 billion EBITDA (2) LTM: US$ 724 million EBITDA Margin LTM: ~ 38.8% Healthy Credit Metrics Debt/Equity Ratio: 1.03 NFD/EBITDA 0.9 Current Ratio 4.69 Highly Liquid Shares Listed on the Santiago Stock Exchange, and the NYSE since 1993 (Ticker: SQM) Most liquid Chilean ADR by volume on the NYSE in 2014 Experienced Management Management team has average of 24+ years with Company Financially Stable: Credit Ratings Standard & Poor s: BBB Moody s: Baa1 (1) LTM: Twelve-month period ended March 31, 2015 (2) EBITDA: gross profit SGA + depreciation & amortization OUR BUSINESSES FERTILIZERS SPECIALTY CHEMICALS Specialty Plant Nutrition Potassium Iodine & Derivatives Lithium & Derivatives Industrial Chemicals Revenue contribution LTM (1) 35% 28% 17% 11% 5% 4

> Unique and Abundant Natural Resources High-quality reserves low-cost operations Caliche Ore Caliche ore is only found in Chile The world s largest deposits of nitrates and iodine Proprietary mining rights pursuant to exploitation concessions Salar Brines Low processing costs due to its high concentrations of potassium and lithium High evaporation rates Production rights are pursuant to a lease agreement with CORFO until 2030 + = + NaNO 3 KCl KNO 3 NaCl (Salt) Sodium nitrate + Potassium chloride = Potassium nitrate + Sodium chloride 5

> SQM Operations 110 Sales to thousands of customers in over 110 countries. Sales diversified by industry and region No customer represents more than 3% of sales Asia and Others 25% North America 25% 20 Europe 21% LatAm 29% Offices and commercial representation

2 > CORE BUSINESSES

> Specialty Plant Nutrition Largest global producer of potassium nitrate Potassium Nitrate: Industry Dynamics SQM Highlights 46 % Market Share (2) 878k MT 2014 Volumes US$659 mm LTM Revenues (1) 25 % LTM Contribution to Gross Profit (1) Fertilizer provides unique benefits: Chlorine-free, water soluble, and fast absorption. Demand drivers: Higher cost of land, water scarcity, increased demand for higher quality crops Expected demand growth in 2015: >5% (2) Total market size ~1mm metric tons (1) LTM: Twelve-month period ended March 31, 2015 (2) SQM estimates Access to reserves of potassium and nitrate Developed distribution network and diverse customer base Lower price elasticity relative to potassium chloride Higher sales volumes expected in 2015 8

> Potassium Chloride and Potassium Sulfate Strategically located to supply major markets Potassium Chloride: Industry Dynamics SQM Highlights <3 % Market Share (2) 1,556 MT 2014 Volumes US$520 mm LTM Revenues (1) 29 % LTM Contribution to Gross Profit (1) Potassium chloride is the most commonly used potassium-based fertilizer. Sold all over the world Expected 2015 global demand: ~58-60 million MT (2) Major players in Belarus, Canada, and Russia. Increased supply seen in market Low-cost producer of potassium chloride Approximately 1/3 of MOP sales to Brazil Flexibility to produce potassium chloride, potassium sulfate, and potassium nitrate depending on market needs Lower sales volumes expected for 2015 (1) LTM: Twelve-month period ended March 31, 2015 (2) SQM estimates 9

> Iodine and Derivatives Largest global producer of iodine Industry Dynamics SQM Highlights 26 % Market Share (2) 8.8k MT 2014 Volumes US$318 mm LTM Revenues (1) 22 % LTM Contribution to Gross Profit (1) Main uses: X-ray contrast media, LCD, pharmaceuticals and sanitizers Global demand: CAGR of ~3% for the period 2004-2014 (2) Expected global demand 2015: ~33,000 MT (2) Limited sources of iodine worldwide: Chile 56% (SQM 26%) Japan 18% Recycling 17% Low-cost producer Developed distribution and sales network Effective capacity ~13,000 MT per year Prices have been decreasing. Lower average prices expected in 2015. (1) LTM: Twelve-month period ended March 31, 2015 (2) SQM estimates 10

> Lithium and Derivatives Lowest cost global producer Industry Dynamics SQM Highlights 27 % Market Share (2) 40k MT 2014 Volumes US$203 mm LTM Revenues (1) 16 % LTM Contribution to Gross Profit (1) Global demand: Growth of ~9% between 2013 and 2014 period (2) Main uses: batteries, lubricant, glass, pharmaceuticals. Future potential related to batteries for e-cars 2014 global demand: 142,000 MT (2) Expect some new supply from Argentina in 2015 A leading lithium chemical producer in the world and the lowest cost producer globally Produce lithium carbonate, lithium hydroxide, and lithium chloride Current lithium carbonate plant capacity stands at 48,000 MT per year (1) LTM: Twelve-month period ended March 31, 2015 (2) SQM estimates 11

> Industrial Chemicals Solar Salts: Dominant Player in a Niche Market Industry Dynamics SQM Highlights 45 % Market Share (1) 126k MT 2014 Volumes US$92 mm LTM Revenues (2) 6 % LTM Contribution to Gross Profit (2) Various traditional uses for industrial nitrates related to glass, metal treatment, water treatment, and explosives Solar Salts: IEA expects installed capacity of concentrated Solar Power (CSP) to double by 2020. 50 MW approximately 30,000 MT of solar salts Projects being developed globally Solar Salts: Leading producer with approximately 60% market share (3) Expect significantly higher volumes in 2015 2017. (1) SQM Estimate: 2014 Industrial Sodium Nitrate Market (2) LTM: Twelve-month period ended March 31, 2015 (3) SQM estimates: 2014 Solar Salt Market 12

3 > OTHER INFORMATION

> Capital Expenditure & Cost Savings Programs Capital Expenditure 2014 and 2015: ~US$300M Cost Savings Plan 2013-2015 After intense investment in recent years, investment decreased for 2014 and 2015 Capex in 2014 totaled US$112 million, ~US$180 expected in 2015 Various projects designed to maintain production capacity, increase yields, and reduce costs. Metallic exploration: direct investment by SQM of ~US$5 million expected in 2015 Restructuring Implementation of lean operations US$130 mm in production cost savings in 2014, including approximately US$50 mm related to depreciation of Chilean peso Approximately US$40 mm in savings anticipated in 2015 14

> Other Relevant Topics Ownership Structure (1) Considerations Bank of New York (ADRs) 23% Others Chile 13% Pampa Group 32% Market conditions / pricing in iodine Sales volumes in potassium chloride Arbitration with CORFO Legal investigations by Chilean tax authority and public prosecutor Dividends Potash Corp 32% Dividend policy: 50% of net income, approved by shareholders in April 2015 SQM Business Opportunities Increased solar salt sales volumes Increased SPN volumes Metallic exploration Cost reductions company-wide 15

US$ Million US$ Million > Financial Performance Revenues Net Income 3.000 2.500 2.000 1.500 1.830 2.145 2.429 2.203 2.014 1.868 700 600 500 400 300 387 554 657 475 304 294 1.000 200 500 0 2010 2011 2012 2013 2014 LTM Mar- 15 100 0 2010 2011 2012 2013 2014 LTM Mar-15 EBITDA (1) /Revenues NFD (2) /EBITDA 38% 45% 46% 38% 37% 39% 0,85x 0,79x 0,83x 1,06x 1,03x 0,90x 2010 2011 2012 2013 2014 LTM Mar- 15 2010 2011 2012 2013 2014 LTM Mar- 15 (1) EBITDA: Gross Profit administrative expenses + depreciation & amortization. (2) Net Financial Debt: interest bearing debt net of cash and cash equivalents, considering the effects of derivatives 16

> Investment Highlights Unique and abundant natural resources Sales in diverse industries, sold globally SPN: Largest global producer Potassium: Uniquely located to supply major markets Iodine: Leading player in strong market with diverse uses Lithium: Lowest-cost producer Industrial Chemicals: Dominant player in a niche market Metallic Exploration: Exploration with low risk Solid financial position and financial management 17

Contact Information: > Gerardo Illanes: VP of Finance and IR, gerardo.illanes@sqm.com > Kelly O Brien: Head of Investor Relations, kelly.obrien@sqm.com > Carolyn McKenzie: Investor Relations, carolyn.mckenzie@sqm.com