2. 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
Important Notice
4. 4
SQM at a Glance
• World Leader in Specialty Businesses: Potassium Nitrate,
Iodine, lithium & Solar Salts
• Global Company: Based in Santiago, Chile with over 20
offices on 6 continents
• Strong Financial Profile
2012 Revenue: US$ 2.4 Billion (+13%)
2012 EBITDA†: US$ 1.1 Billion
2012 EBITDA Margin: > 46%
Revenue growth: > 69 % since 2009
• Highest liquidity in Chile
Listed on the Santiago Stock Exchange, and the
NYSE since 1993
Most liquid Chilean ADR on the NYSE in 2012
One of the five most liquid companies traded in the
Chilean Stock Market in 2012
• Responsible growth
Specialty BusinessWorld Leadership Growth Opportunities
4
† EBITDA: gross profit – SGA + depreciation & amortization
5. 5
SQM at a Glance
Specialty BusinessWorld Leadership Growth Opportunities
SQM: Proud to be the world’s largest producer of lithium, iodine, potassium nitrate and solar salts
Fertilizers Specialty Chemicals
Potassium
24%*
Specialty Plant
Nutrients
21%*
Iodine
35%*
Lithium
11%*
Industrial
Chemicals
8%*
5
* Contribution to SQM Consolidated Gross Profit of 2012
7. Operational Synergies and a low-cost structure
Caliche
Ore
Salar Brines
Operational synergies and low-cost structure
• Similar processes and industrial technologies are
used across our operations: solar ponds,
evaporation, salt harvesting, crystalllizing, drying,
among others
• Raw materials are used in the production of
several different products, reducing costs
significantly
• Specialty Plant Nutrients, Potassium Chloride and
Industrial Chemicals volumes create logistics
efficiencies
Commercial flexibility according to market conditions
• Nitrates in different qualities are used for
industrial applications or for the fertilizer
industry
• Potassium can be sold as potassium chloride or
used as raw material in the production of
potassium nitrate
• Potassium chloride/sulfate allocation
Iodine
Nitrates
Potassium
chloride
Potassium
sulfate
Lithium
Potassium
nitrate
Specialty BusinessWorld Leadership Growth Opportunities 7
9. 9
†Market share figures are based
on 2012 SQM estimates.
*Figures are based on IFRS
Specialty BusinessWorld Leadership Growth Opportunities
Fertilizers: Uniquely Positioned
9
Specialty Plant
Nutrition
46% world market share KNO3†
2012 Revenues* US$675M (28%)
21% of total 2012 gross margin*
Potassium
2012 Revenues* US$605M (25%)
24% of total 2012 gross margin*
10. 10
Potassium Nitrate
Niche Market Demand Drivers
• Chlorine free
• Fully water soluble
• 100% Natural origin
• Fast absorption
• High cost of land
• Water scarcity
• Demand for premium
crops
• North America and
European vegetable
and tomato markets
Modern Agricultural
Techniques
Fertilizers: Specialty Plant Nutrition
21% of Total 2012 Gross Margin
Vegetables
41%
Fruits
22%
Industrial
Crops
28%
Others
9%
Main uses: Premium crops*
*SQM estimates 2012
Specialty BusinessWorld Leadership Growth Opportunities
10
11. 11
Fertilizers: Specialty Plant Nutrition
21% of Total 2012 Gross Margin
SQM & SPN: World Leader
• Completion of new potassium nitrate facility
in Coya Sur (300,000 tons/year)
• Developed distribution network: Proximity to
customers allows for us to meet changing
needs and new market tendencies
• Largest Producer: 46% World Market Share
Other producers: Haifa, Kemapco*
• Prices are expected to decrease in 2013 as a
result of the new potash price environment
Specialty BusinessWorld Leadership Growth Opportunities
11
* Figures are based on 2012 SQM
estimates. Market estimates do not
include imports/exports from China
600
800
1.000
0
200
400
600
800
1.000
2009 2010 2011 2012
SQMAvg.PriceforSPNbusinessline
ThMT
Year
World Potassium Nitrate Market*
12. 12
Fertilizers: Potassium
24% of Total 2012 Gross Margin
Potassium Chloride
Market Demand Drivers
• Commodity Fertilizer
• ~50 million ton market
(2012)
• Largest Global Producers:
• Potash Corp
• Uralkali
• Global crop supply
pressure should have a
positive impact on
fertilizer prices
• Contracts with China for
the first half of 2013
closed at $70 under prices
seen in 2012
• Main Uses:
•Fruits/Vegetables
•Corn
•Rice
• Demand growth still
being seen in Brazil
• Population Growth
• Farmer economics &
yield optimization
Specialty BusinessWorld Leadership Growth Opportunities
*SQM estimates
**Price as of December for respective years
12
0
100
200
300
400
500
600
0
10
20
30
40
50
60
2009 2010 2011 2012
PrecioFOBVancouverUS$/ton**
millonesdeTM
Año
Mercado MOP
13. 13
SQM & Potassium: Growth Opportunities
• Expansion of potassium-based products:
• Installed capacity of approximately
2 million MT in 2012
• 2013 production volumes to be similar
to 2012
• 2014 effective capacity expected to be
between 2.2 – 2.3 million MT
• Three main sources of potassium that exist in
market today: SQM is the only company that
produces all three sources
• Internal development of production
technologies has allowed for a better
utilization of natural resources and for higher
yields through increased efficiencies
Fertilizers: Potassium
24% of Total 2012 Gross Margin
• MOP is potassium chloride (KCl), also known as potash
• SOP is potassium sulfate (K2SO4)
Specialty BusinessWorld Leadership Growth Opportunities
13
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013E
Th.MT
Year
SQM Production Volumes MOP + SOP
15. 15
Specialty Chemicals: World Leadership
†Market share figures are based on 2012 SQM estimates
⁰ Considering the lithium chemicals market, excluding
concentrated minerals
*Figures are based on IFRS
Specialty BusinessWorld Leadership Growth Opportunities
15
Iodine & Derivatives
34% world market share†
2012 Revenues* US$578M (24%)
35% of total 2012 gross margin*
Lithium & Derivatives
35% world market share†⁰
2012 Revenues *US$222M (9%)
11% of total 2012 gross margin*
Industrial Chemicals
2012 Revenues *US$245M (10%)
8% of total 2012 gross margin*
16. 16
Specialty Chemicals: Iodine
35% of Total 2012 Gross Margin
* Market participation based on SQM 2012 estimates
Market supply estimates for Japan include supply from
traditional production and recycling in Japan
Iodine
Niche Market Main Uses
• SQM is the leading iodine
producer in the world
• Global Demand: CAGR
2002-2012: 4%
• Additional capacity from
Chilean competitors
started production in
2012, aiming to reach
projected capacity in
2013
• X-Ray Contrast Media
• LCD
• Pharmaceuticals
• Iodophors
• Approximately 40% of
uses related to human
health and nutrition
Specialty BusinessWorld Leadership Growth Opportunities
16
SQM 34%
Japan 31%
Others Chile
24%
Others
Recycling 5%
USA 4%
Others 2%
2012 Market Size Estimates: ~31
kMT*
18. 18
Specialty Chemicals: Lithium
11% of Total 2012 Gross Margin
*SQM estimates: Lithium chemicals market
Specialty BusinessWorld Leadership Growth Opportunities
Lithium
Market Main Uses
• SQM is the leading lithium
chemical producer in the
world
• Global demand: CAGR (2002-
2012): ~ 8%
• Expected growth for 2012: ~
9%
• Global lithium chemical
demand has increased over
25% between 2010-2012, with
batteries being the primary
demand driver
• Battery technology historically
been the demand driver.
•Batteries (over 41%)
• Glass
• Lubricating Greases
• Glazes/Frits
Li2CO3
18
SQM 35%
China 10%
Talison 22%
Others Chile
19%
FMC 11%
Others 3%
19. 19
Lithium & SQM: Growth Opportunities
• Current lithium carbonate plant capacity 48,000
MT/year
• We believe SQM is one of the lowest cost
producer in the world
• New production capacity is expected from
Australia & China during 2013
Lithium & Electric Cars: Outlook
• Total production of e-cars (HEV-PHEV-EV) using
lithium-ion batteries (LIB) is expected to reach
1.5-3.0 million (2015), 5.0-10.0 million (2020)
• Total lithium demand is expected to reach 250-
300 KMT-LCE (2020)
Specialty Chemicals: Lithium
11% of Total 2012 Gross Margin
*SQM estimates: Lithium chemicals market
Specialty BusinessWorld Leadership Growth Opportunities
19
0
2.000
4.000
6.000
40
60
80
100
120
140
2008 2009 2010 2011 2012
LithiumAveragePriceUS$/ton
TH.MT-LCE
Year
Lithium Chemicals Market*
20. 20
Solar Salts:
New demand for industrial nitrates for thermal
energy storage in solar power plants means
increasing our nitrate consumption
• Mixture of 60% sodium nitrate and 40%
potassium nitrate
• Main projects: ACS Cobra-Sener, Aries,
Rocketdyne, Abengoa, SAMCA, Solar
Reserves
• 50 MW → ~30,000 MT of salts
• 2012 solar salts are expected to reach
~ 180,000 MT .
• 2013 sales expected to drop below
100,000 MT due to a delay of most
projects until 2014 as a result of the
financial situation in Europe
Specialty Chemicals: Industrial
8% of Total 2012 Gross Margin
Traditional Industrial Chemical
applications include: metal treatment,
water treatment, pyrotechnics, explosives,
glass manufacturing, among others
Specialty BusinessWorld Leadership Growth Opportunities
20
22. 22
1. Capacity expansion for potassium-
based products in the Salar de
Atacama
2. Increased capacity in iodine and
nitrates facilities in first region,
with increased plant efficiencies
and higher quality products
3. Optimization railroad system,
other projects aimed at improving
yields and reducing costs
Capital Expenditure Program
Approximately US$500 million for 2013
*Approximately 70% of capital expenditures will be
related to expansion projects
Specialty BusinessWorld Leadership Growth Opportunities
22
