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1
CORPORATE PRESENTATION
2019
2
CUSTOMARY NOTE
REGARDING FORWARD-LOOKING
STATEMENTS
SQM (NYSE: SQM, Santiago Stock Exchange: SQM-A, SQM-B) is a global company engaged in strategic industries for human development, such as
health, food, clean energy and the technology that moves the world.
This presentation and the material within the presentation, is meant to be given in conjunction with an oral presentation and should not be taken out of
context. Statements in this presentation concerning SQM’s business outlook, future economic performance, 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 the U.S. Private Securities Litigation Reform Act of 1995.
Any forward-looking statements are estimates, reflecting the best judgment of SQM management based on currently available information and involve
a number of risks, uncertainties and other factors that are outside SQM´s control 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 SQM´s public filing made with the
U.S. Securities and Exchange Commission, specifically SQM´s most recent annual report on Form 20-F. All forward-looking statements are based on
information available to SQM on the date hereof and SQM assumes no obligation to update such statements whether as a result of new information,
future developments or otherwise, except as required by law.
3
CORPORATE STRATEGY Safety, Efficiency, Integrity
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
Strengthen the organizational structure to support the development of the strategic plan, focusing on the development of critical
capabilities and the application of the corporate values of excellence, integrity and safety
Strengthen the organizational structure to support the development of the strategic plan, focusing on the development of critical
capabilities and the application of the corporate values of excellence, integrity and safety
Improve our stakeholder management to establish links with the community, and communicate to Chile and the world our
contribution to industries essential for human development
Ensure availability of key resources required to
support current goals for medium and long-term
business growth
Consolidate a culture of lean operations (M1 excellence)
throughout the organization, including operations, sales
and support areas
Significantly increase nitratesales for all its applications, and ensure consistency with
the iodine sales strategy
Maximize the margins of each business line through appropriate pricing strategy
Successfully develop and implement all lithium
expansion projects, acquiremore assets to complement
our current portfolio
4
SQM AT A GLANCE: Reserves, Products & Capacities
Caliche Ore Salar Brines Spodumene
I2 NaNO3 LiOHLi2CO3KCL
KNO3
14k MT/year 1.3 million MT/year 2 million MT/year 70k MT/year 13.5k MT/year
Nueva Victoria Coya Sur Salar de Atacama Antofagasta
(Salar del Carmen)
Mt. Holland, 50/50 JV
Western Australia
I2 – iodine, NaNO3 – sodium nitrate, KCL – potassium chloride, KNO3 – potassium nitrate, Li2CO3 – lithium carbonate, LiOH – lithium hydroxide
LiOH
45k MT/year in 2021
5
SQM: Well-balanced product portfolio
1 Twelve months ended September 30, 20182 As of December 31, 20173 In industrial sodium and potassium nitrate markets4 Adjusted EBITDA = gross profit - administrative expenses + depreciation and amortization. Adjusted EBITDA margin = Adjusted EBITDA/revenues
2018 LTM1
Market Share2 54% 23% 35% <3% >30%3
Sales Volumes 1,099 kMT 43.6 kMT 13.1 kMT 964 kMT 182 kMTRevenues US$793 mm US$680 mm US$304 mm US$298 mm US$149 mmContribution to LTM Gross Profit
22% 55% 12% 5% 6%
2018 LTM Revenues: US$2.3 billion | 2018 LTM Adjusted EBITDA4: US$911 million | Adjusted EBITDA Margin LTM: 40%
NFD/EBITDA: 0.5 | Moody´s: Baa1 | Standard and Poor´s: BBB+
6
SQM Evolution: Lithium represents more than 50% of the Company
-
200
400
600
800
1,000
1,200
Gro
ss P
rofit,
US$
mill
ion
Fertilizers (SPN+KCL) Iodine Lithium Industrial Chemicals
SPN, 22%
Industrial
Chemicals,
6%
Iodine, 12%
Lithium,
55%
Potassium,
5%
LTM1 Contribution to gross profit
Gross profit evolution
1 Twelve months ended September 30, 2018
Uniquely positioned for various product cycles. Today, lithium represents over 50% of gross profit.
7
0
100
200
300
400
500
600
700
800
900
1000
2007 2017 2018 2019 2020 2021 2022 2023 2024 2025
kM
T
Energy Storage (kMT-LCE) Other applications CAGR 16-20%
Lithium demand:
SQM well-positioned to capture future LiOH growth
Lithium Demand Evolution and Expected Growth
CAGR 12%
Key assumptions (2017-2025)
• Annual vehicle growth rate ~2%
• EV1 penetration from ~3% to 12%
• Average batter size from ~40 to 50 kWh
(~0.8-0.9 kg LCE/kWh)
• Other batteries CAGR ~9-13%
• Other uses CAGR ~2-6%
Li2CO3, 60%
LiOH, 23%
Others,
17%
2017
Li2CO3, 44%
LiOH, 51%
Others, 5%
2025
SQM estimates that lithium hydroxide
surpasses lithium carbonate by 2025
1 EV = PHEV + BEV
8
Lithium demand assumptions: Lithium price is not a barrier for growth
Lithium content in each device in LCE
Electric vehicle – 10-60 kgHybrid vehicle – 1-2 kgPower tool – 40-60 gLaptop – 30-40 gSmartphone – 2-3 g
NMC111 NMC622 NMC811
2% 2% 1%
61%45%
27%
10%23%
36%
8% 9% 11%
Other Copper Graphite Manganese Cobalt Nickel Lithium
Lithium battery materials breakdown
UK & France by 2040
Norwayby 2025
Germany
by 2030
Governmentpolicies:
100% EV sales
China by 2030
Netherlands
by 2025
USA sales tax
relief
EV >50% of
fleet
25 EV models
40 EV models
>US$11 billion
Various OEMs announcements
12 EV models
8 EV models
50 million EVs
>US$50 billion
9
SQM Lithium: Sustainable Operations in the Salar de Atacama
0%
5%
10%
15%
20%
25%
30%
35%
40%
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
LITHIUM CARBONATE PRICE, US$/KG
Rental Fee, contract percentage of price Rental Fee, weighted average percentage
• Production rights are pursuant to a rental agreement with
CORFO until 2030.
• Total amount of lithium production allowance is 2.2 million MT of
LCE.
• Current annual capacity: 70k MT of lithium carbonate and 13.5k
MT of lithium hydroxide.
• Continued work on lithium carbonate capacity expansion.
Contribution to the
development and
communities
• Annual contribution of US$11-19 million for R&D efforts
• Annual contribution of US$10-15 million for neighboring
communities of the Salar de Atacama
• Annual contribution of 1.7% of SQM Salar’s sales per year
for regional development
SUSTAINABILITY & INNOVATION
CORFO Agreement, rental fees
Best safety record over the last 12 months
95.8% of the energy
required for our operations is
solar
Will be able to almost
quadruple lithium
production without extracting
more brine from the Salar de
Atacama
Environmental management systems at all
production sitesContinued development of
large-scale lithium projects
in Chile and abroad
In 2017, SQM and the Ayllu
Wine Program worked with
farmers and the Indigenous
Association to produce over
7,500 bottles of wine in the
Salar de Atacama
Approximately 15% of our employees
are women, more than double the
average in the Chilean mining industry
Salar del Carmen operates with 100%
reused water
442k m3 of water from treated
domestic liquid
waste was reused in our
operation in 2017
10
SQM lithium: Mt. Holland project in Australia
• Mt. Holland, 50/50 JV with Kidman Resources
• Estimated to contain 189 million tons of 1.50% Li2O or 7.03
million tons of LCE (according to JORC Code* standards)
• One of the world’s most significant hard rock lithium
deposits. Expected to be at the low end of the global
hard rock cost curve
• Exclusive option to lease a premier site in Kwinana,
Western Australia to build a refinery and produce
battery-grade refined lithium
• Production focus on lithium hydroxide
• Capacity: 45k MT of LiOH/year
• Estimated commission date: 2020 - spodumene
concentrate, 2021 - LiOH
• Current status: advancing on feasibility studies for mine,
concentrator and refinery
*The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (‘the JORC Code’)
11
SQM focus: Meeting customers evolving product requirements
• High complexity industry: product
specifications change as the
applications technology evolves
• High level of operational flexibility to
meet the needs & requirements of
each customer
• More than 35 different product
specifications of lithium produced at
Salar del Carmen
• Long-term relationships with large
customers
• Global distribution network reaching
>110 countries with product stock and
comercial offices on each continent
Rapid growth of EV market means significantly
increased demand and stricter requirements for
high quality battery grade lithium
12
SQM Fertilizers Businesses: SPN & MOP
Specialty Plant Nutrients
SQM competitive advantage
• Access to reserves of both potassium and
nitrates
• Developed distribution network and diverse
customer base
• 16 NPK plants around the world
• Current production capacity: 1.3 million
MT/year, expansion to 1.5 million MT/year in
2018
Potassium nitrate (KNO3) provides unique benefits:
chlorine-free, water soluble, and fast absorption
Water soluble segment grows at ~10% per year,
KNO3 ~6%
LTM CONTRIBUTION TO:
Potassium
MOP is the most common used potassium
based fertilizer
2018 market size ~ 62 million MT
Major players in Belarus, Canada and
Russia
SQM´s expected sales in 2018 ~<1 million
MT, lower sales volumes expected in 2019
SQM competitive advantage
• Low-cost producer of MOP
• Flexibility to produce MOP, SOP and
KNO3 depending on market needs
LTM CONTRIBUTION TO:
22%
Gross profit
36%
Revenues
5%
Gross profit
13%
Revenues
13
SQM Specialty Chemicals Businesses: Iodine & Solar Salts
Iodine and Derivatives
• Lowest-cost producer
• Extensive market knowledge and long-term relationships with our largestcustomers
• Developed distribution network to respond rapidly to market needs
• Quality of mining reserves and availableproduction capacity of 14k MT per year
Iodine main uses: X-ray contrast media - 23%,
pharmaceuticals – 13%, LCD - 12%.
Average prices in 3Q2018 ~US$25/kg
Global demand in 2018 ~37k MT (~3% annual
growth)
SQM competitive advantage
LTM CONTRIBUTION TO:
Various traditional uses for industrial nitrates related
to glass, metal treatment and explosives
Solar Salts:
• A 50MW parabolic CSP plant with 7.5 hours of
indirect storage requires ~30k MT of solar salts
• Project being developed in Europe, Northern
and Southern Africa, Middle East, Chile, China
and Australia
• Prices remain flat in 2018
• Sales volumes ~ 48k MT in 2018
Industrial Chemicals
SQM competitive advantage
• Low-cost producer
• Operational flexibility with certain industrial sodium
and potassium nitrate products
• Production of both potassium nitrate and sodium
nitrate, the two raw materials in solar salts
productionLTM CONTRIBUTION TO:
5%
Gross profit
6%
Revenues
13%
Gross profit
14%
Revenues
14
15%
24%
32%
2%5%
22%
Bank of New York Mellon (ADRS)
Tianqi
Pampa Group
Kowa Group
Chilean Pension Funds
Others Chile
Other Relevant Information
Ownership Structure1
2018 Net Income distribution in 3 interim & 1 final dividend
100% 80% 60%
Sep 30,
2018
(a) 𝑐𝑎𝑠ℎ+𝑜𝑡ℎ𝑒𝑟 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠≥ 2.5 2.0 1.5 37
(b)𝑡𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑡𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦≤ 1.1 1.2 1.3 1.0
If none of the above parameters is met: 50% of 2018 Net Income
Dividend Policy2
1 Registered shareholders as of November 20, 20182Please see the full version on our website at www.sqm.com
Dividends announced and paid in 2018
May 2018 US$110 million Final dividend 4Q2017
May 2018 US$100 million Special dividend
June 2018 US$114 million Interim dividend 1Q2018
September 2018 US$134 million Interim dividend 2Q2018
December 2018 US$84 million Interim dividend 3Q2018
Total US$542 million
2018 Daily average trading volume
New York Stock Exchange: US$40 million
Santiago Stock Exchange: US$25 million
15
CAPEXSustainable organic growth and M&A
Historical Maintenance CAPEX: ~US$100 million
2016-2018: Lithium Hydroxide Expansion to 13.5k MT: ~US$30 million
2017-2018: Potassium Nitrate Expansion to 1.5m MT: ~US$50 million
2017-2021: Lithium Carbonate Expansion to 180k MT: ~US$525 million
2017-2018: Iodine capacity expansion to 14k MT: ~US$30 million
2018 CAPEX in Chile: ~US$360 million
Annual D&A expenses: ~US$250 million
16
Appendix
Review of Results
SPN Lithium Iodine Potassium IndustrialChemicals
P
Q
559
559 568 574 574545 545
5439 21
(15)
5
(33) (2)
400
500
600
700
800
189
189201
173 173163 163
164
1212
(40)
9
(10)
0
100
150
200
250
300
Revenue Contribution 3Q2018/3Q2017
Gross Profit Contribution
3Q2018/3Q2017
US
$ M
illio
n
US
$ M
illio
n
• Prices increased in all business lines
except SPN in the 3Q2018 compared
to the same period of 2017.
• Significantly higher iodine prices and
SPN sales volumes outweighed the
impact of lower lithium and
potassium sales volumes in the
3Q2018.
Strong Financial Position
2.1
2.4
2.1
2.3
1.0
2.0
3.0
4.0
Sep 17 Dec 17 Jun 18 Sep 18
8.3 7.8 7.4 7.1
4.0
8.0
12.0
16.0
Sep 17 Dec 17 Jun 18 Sep 18
3.8 3.3
3.6
4.3
2.0
3.0
4.0
5.0
6.0
Sep 17 Dec 17 Jun 18 Sep 18
6.8 4.5 6.2
37.3
0.0
10.0
20.0
30.0
40.0
Sep 17 Dec 17 Jun 18 Sep 18
0.3 0.2
0.4 0.5
0.0
0.5
1.0
1.5
2.0
Sep 17 Dec 17 Jun 18 Sep 18
0.8 0.9
1.0 0.9
0.5
1.0
1.5
2.0
Jun 17 Dec 17 Mar 18 Jun 18
Accounts Receivables
(Months of Sales)Inventory
(Months of Sales)
Cash / Short-Term Financial DebtLiquidity
(Current Assets/Current Liabilities)
LeverageNet Financial Debt/ EBITDA
Debt Maturity1
1 As of September 30, 2018 total debt didn´t include the bond issued on November 8, 2018, total amount ~US$124 million with maturity in 2038.
- 8
265
15 15
385
15
265
15 15
139
15 8 - -
62
- - - -
124
-
50
100
150
200
250
300
350
400
450
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
Agreement with CORFO
Li2CO3 LiOH
US$/MT % US$/MT %
<4,000 6.80% <5,000 6.80%
4,000-5,000 8.00% 5,000-6,000 8.00%
5,000-6,000 10.00% 6,000-7,000 10.00%
6,000-7,000 17.00% 7,000-10,000 17.00%
7,000-10,000 25.00% 10,000-12,000 25.00%
>10,000 40.00% >12,000 40.00%
Original Agreement % US$/MT
Li2CO3, LiOH 6.80% 884
KCL 1.80% 5.04
New Agreement
Li2CO3 23.58% 3,772
LiOH 19.56% 3,130
KCL 3.00% 9.60
Payments1
Example2
1 Effective as of April 10, 20182Avg. price lithium: US$16,000/MT, potassium: US$320/MT
Production allowance
Total production quota until 2030: 349,553 MT of LME:
New quota: 185,767
Additional quota: 112,723
Efficiency quota: 51,063
Reminder original quota: 64,816
Total 2.2 million MT of LCE
Expansion 1: 50,000 MT by 2023
Expansion 2: 100,000 MT (in 4 stages of 25k MT)
Capacity Expansion Options
SQM Capacity Expansions in Chile
Li2CO3: 70,000 MT to 120,000 MT in 2019
120,000 MT to 180,000 MT in 2021
LiOH: 13,500 MT in 2018
20
• Gerardo Illanes:
CFO & VP of Corporate Finance
• Kelly O’Brien:
Head of Investor Relations
• Irina Axenova:
Investor Relations
Contact
information
