4Q2023 RESULTS PRESENTATION February 2024 Customary note regarding forward-looking statements This presentation release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "plan," "believe," "estimate," "expect," "strategy," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among ...

Sociedad Química y Minera de Chile S.A. (NYSE:SQM) Q4 2023 Earnings Conference Call February 29, 2024 10:00 AM ET Company Participants Irina Axenova – Head of Investor Relations Ricardo Ramos – Chief Executive Officer Gerardo Illanes – Chief Financial Officer Carlos Diaz – Executive Vice President of Lithium Juan Pablo Bellolio – Commercial Vice President of Iodine and Industrial Chemicals Gonzalo Aguirre – Business Intelligence Director Conference Call Participants Isabella Simonato – Bank of America Ben I ...

1 Last twelve months ended September 30, 2023. 2 Market share as of December 31, 2022. Market share percentages have been developed by us using internal and external sources and reflect our best current estimates, which have not been confirmed by independent sources. SQM Potassium 2023 LTM1 Gross Profit US$35M LTM1 Revenues: US$190M $1,595 $1,115 $1,235 • Industrial potassium nitrate market prices should follow the trends seen in the agricultural sector. ended September 30, 2023, reached ~US$2.4 billion. | ...

Financial Data and Key Metrics Changes - The company reported close to $1.3 billion in revenues from the lithium business, approximately 10% lower compared to the previous quarter, primarily due to significantly lower realized sales prices, partially offset by record high sales volumes of over 43,000 metric tons during the quarter [22] - In the iodine business, revenues exceeded $210 million for Q3 2023, driven by a strong pricing environment with sales prices close to $70 per kilogram [23] Business Line Data and Key Metrics Changes - The fertilizer business generated nearly $300 million in revenues during Q3, supported by positive demand growth expected to continue into 2024 [11] - The lithium carbonate capacity in Chile reached 200,000 metric tons per year, with an expected completion of expansion to 210,000 metric tons by early 2024, almost a year earlier than anticipated [24] Market Data and Key Metrics Changes - The company noted a downward price trend for lithium that began at the start of the year, which is expected to continue for the remainder of 2023 due to excess inventories and additional supply entering the market [10] - The demand fundamentals for lithium remain strong, with an expected annual average growth of over 20% for the next five years, despite some softening of demand outside China [38] Company Strategy and Development Direction - The company is focused on sustainable operations and has received international recognition for its commitment to sustainability, achieving the highest score to date from IRMA [12] - The company is actively engaged in negotiations with CODELCO, emphasizing the importance of sustainability and environmental goals in their operations in the Salar de Atacama [15][31] Management's Comments on Operating Environment and Future Outlook - Management expressed that while there are challenges in the short term due to excess inventories, they remain optimistic about long-term growth driven by EV production and sales volume targets [10] - The company is prepared to build inventory in the coming quarters and is focused on maintaining production at maximum capacity while being disciplined in response to market conditions [27] Other Important Information - The company has been working on the Salar Futuro project for nearly three years, aiming for hydric neutrality in the Salar de Atacama Basin [31] - The company has made investments in DLE technology through a partnership with a French company, Adionics, to enhance its lithium production capabilities [60] Q&A Session Summary Question: Production and Inventory Management - Management confirmed that they are building inventory and are prepared to continue this strategy in the upcoming quarters [27] Question: Negotiations with CODELCO - Management highlighted the complexity of negotiations with CODELCO, focusing on environmental restrictions and sustainability goals [15][31] Question: Lithium Production Capacity and Costs - The company expects to reach 210,000 metric tons of lithium production capacity by early 2024 and is working on reducing costs through increased yield and efficiency [33][34] Question: Market Pricing and Demand - Management acknowledged the current downward pressure on lithium prices due to excess inventories but remains confident in long-term demand growth [38] Question: Future Production and Sustainability - Management reiterated that any future production increases will be contingent on maintaining sustainability and environmental goals [50][51]

Ben Isaacson And how much volume are we talking about? Felipe Smith I'm sorry, I cannot disclose the details. We only disclose in the case of LG that it is more than 100,000 for the period 2023-2029, but that's it. We cannot comment for the rest. Sorry, Ben. Ben Isaacson Pablo Altimiras Yes. Hi, Ben, Pablo Altimiras is speaking. Well, that's true. I mean, prices are in a high range today. Why we don't see supply? Well, I would say that because to produce iodine, it's not so easy. We are talking about -- in ...

Financial Data and Key Metrics Changes - The first quarter of 2023 saw lower sales volumes in Lithium and Specialty Plant Nutrition business lines, partially offset by higher average prices compared to the same period last year [8] - Global electric vehicle sales increased nearly 30% year-over-year, with significant growth in China, Europe, and the U.S. [16] - The company expects a steady increase in sales volume throughout the year, quarter-over-quarter [17] Business Line Data and Key Metrics Changes - Lithium demand declined at the beginning of the year, particularly in China, leading to lower sales volumes [15] - The Iodine business has seen increased production volumes, particularly in the contrast media segment, which is expected to grow close to 7% annually [11] - Specialty Plant Nutrition (SPN) volumes are anticipated to slightly exceed 2022 levels in the next three quarters [61] Market Data and Key Metrics Changes - The Lithium market is expected to remain tight throughout the year due to new supply coming to the market and stricter environmental requirements affecting high-cost suppliers [10] - The contrast media market is expected to maintain strong demand, contributing to stable pricing for Iodine [78] Company Strategy and Development Direction - The company is focused on expanding production capacity and maintaining strong relationships with strategic customers [17] - There is an ongoing interest in exploring new projects in regions such as Argentina, Brazil, and Mexico, with Australia being the primary focus for development [33][84] - Sustainability remains a core focus, with commitments to reduce carbon and water intensity in operations [27] Management's Comments on Operating Environment and Future Outlook - Management believes the fundamentals of Lithium demand remain strong despite recent fluctuations in market conditions [9] - The company anticipates good volumes in the second semester and expects pricing to follow supply-demand dynamics [73][74] - The management is optimistic about the recovery of customer purchasing activity and the conclusion of destocking in the market [86] Other Important Information - The company plans to increase capital expenditures (CapEx) for new projects in the Lithium industry, with no current plans to reduce CapEx [25][39] - The company is preparing to start negotiations with CODELCO regarding the National Lithium Policy, emphasizing the importance of confidentiality in discussions [21][114] Q&A Session Summary Question: What is the outlook for Lithium supply in the coming years? - Management is analyzing potential projects in Argentina, Brazil, and Mexico, while focusing on Australia as the primary area for development [20][33] Question: Can you provide an update on the National Lithium Policy negotiations? - Management stated that discussions with CODELCO will begin in the coming weeks, emphasizing the need for a mutually beneficial agreement [21][101] Question: What are the expectations for Lithium volumes in the second quarter? - Management expects volumes in the second quarter to be substantially higher than the first quarter and better than the second quarter of the previous year [38] Question: How is the pricing trend for Lithium in Q2 compared to Q1? - Management noted that Q1 sales were concentrated towards the end of the quarter, and they expect a more stable volume pattern in Q2 [112] Question: What is the company's stance on potential joint ventures in Canada and the U.S.? - The company remains open to exploring opportunities globally, with a strong focus on Australia due to existing operations there [84] Question: How does the company view the current pricing environment for potash and potassium nitrate? - Management indicated that while potash prices are down, the pricing environment for potassium nitrate remains stable, and they expect demand to improve in the coming quarters [80][61]

Financial Performance - SQM's Earnings per Share reached US$2.63[4] - Revenue reached US$2,264 million, a 12% year-on-year increase[12] - Gross Profit was US$1,088 million, a 8% year-on-year decrease[12] - Net Income was US$1,066 million, a 9% year-on-year decrease[12] - Adjusted EBITDA was US$750 million, a 6% year-on-year decrease, with an Adjusted EBITDA Margin of 48%, a 18% year-on-year decrease[12] - The company's total contribution to the Chilean treasury surpassed US$1 billion for the three months ended March 31, 2023[28] Business Segment Highlights - Iodine sales prices experienced a record-high increase of 40%, coupled with a 12% increase in sales volumes[5] - Lithium sales volumes decreased by 15%, but were partially offset by a 34% increase in average sales prices[14] - Potassium average sales prices decreased by 21%, and sales volumes decreased by 3%[10] - Specialty Plant Nutrition (SPN) experienced lower sales volumes (-20%), with flat year-on-year average sales prices[5] Market Outlook and Strategy - The lithium market is expected to remain tight, with demand growing at least 20% and new supply being delayed[34] - The company expects to sell approximately 500,000 metric tons of potassium chloride and potassium sulfate in 2023[74] - SQM plans to add approximately 1,000 metric tons of iodine capacity in 2023[51] - Total capital expenditure for 2023-2025 is projected to be US$2.2 billion, including maintenance[18] - Iodine and Nitrates projects will have a total capital expenditure of approximately US$1.2 billion from 2023-2025, including maintenance[68]

Revenue and Financial Performance - For the year ended December 31, 2022, revenues from products originating from the Salar de Atacama represented 80% of consolidated revenues, with total revenues reported at US$8.9 billion[56][62]. - In 2022, the company achieved revenues of US$10,720.6 million, gross profit of US$5,736.6 million, and profit attributable to controlling interests of US$3,906.3 million[197]. - In 2022, lithium and its derivatives accounted for 76% of total revenues, a significant increase from 33% in 2021 and 21% in 2020[206]. - Specialty plant nutrients revenues rose to $1,172.3 million in 2022, representing a 29% increase from $908.8 million in 2021, with prices increasing approximately 75.7%[220]. - Revenues from iodine and iodine derivatives reached $754.3 million in 2022, up from $437.9 million in 2021, representing 7.0% of total revenues[247]. Market and Sales Dynamics - Approximately 67% of sales in 2022 were made in emerging markets, with 58% in Asia and Oceania[62]. - The company estimates that its sales of potassium nitrate accounted for approximately 45% of global potassium nitrate sales for agricultural uses by volume in 2022[221]. - In 2022, North America accounted for 42% of total revenues, an increase from 35% in both 2021 and 2020[236]. - The agricultural soluble potassium nitrate market experienced a consumption reduction of between 12% and 16% in 2022 due to strong price increases[228]. - The company sold specialty plant nutrients in approximately 103 countries, with no single customer representing more than 10% of revenues[235]. Production and Capacity Expansion - Capital expenditures in 2022 totaled US$905.2 million, primarily for lithium carbonate production capacity expansion from 120,000 metric tons to 180,000 metric tons per year and lithium hydroxide production capacity expansion from 21,500 metric tons to 30,000 metric tons per year[189]. - The company expects capital expenditures for 2023 to reach approximately US$1.2 billion, focusing on lithium carbonate and lithium hydroxide capacity expansions, as well as maintenance of production facilities[191]. - By the end of 2024, the company anticipates installed capacity of lithium carbonate and lithium hydroxide in Chile to reach approximately 210,000 metric tons and 40,000 metric tons, respectively[191]. - The company completed lithium carbonate and lithium hydroxide expansion projects in 2022, increasing production capacity to 180,000 metric tons and 30,000 metric tons, respectively[187]. - Capital expenditures for the 2023-2025 period are expected to total approximately US$3.4 billion, including US$1.4 billion for lithium capacity expansion and US$1.2 billion for nitrates and iodine capacity expansion[192]. Investment and Strategic Initiatives - The company has a US$3.4 billion investment plan for 2023-2025 to expand operations in lithium, iodine, and nitrate, including projects in Australia and China[65]. - The company may pursue acquisitions or joint ventures to strengthen its competitive position, which could require raising significant debt and/or equity, potentially affecting financial condition and future cash flows[155]. - In 2021, the company undertook a capital increase of US$1.1 billion to support its capital plan[175]. - The company entered into a 50/50 joint venture with Wesfarmers for the Mt. Holland lithium hydroxide project, with an investment of approximately US$700 million approved in 2021 for development costs[185][182]. Regulatory and Political Environment - The company faces risks related to the new National Lithium Strategy announced by the Chilean government in April 2023, which may create uncertainty in the lithium industry[55][57]. - The Chilean Congress is discussing a bill that could declare lithium mining to be in the national interest, potentially enabling the expropriation of lithium assets[135]. - The Chilean Congress approved a bill that amends the Water Code, introducing changes such as temporary water rights for a maximum of 30 years and prioritizing human consumption and sanitation[134]. - The Chilean Internal Revenue Service levied taxes amounting to US$ 127.1 million on SQM Salar for tax years 2012 to 2018, with a potential future assessment estimated at approximately US$ 745.3 million[136][138]. - The company is exposed to political risks and civil unrest in Chile, which could adversely affect its business, financial conditions, and results of operations[120]. Environmental and Sustainability Efforts - The company announced a sustainable development plan aiming for carbon neutrality and a 65% reduction in water usage and 50% reduction in brine extraction by authorized limits[101]. - The company is focused on sustainability, aiming to become carbon neutral and reduce water usage by 65% and brine extraction by 50% as part of its Sustainable Development Plan announced in October 2020[184]. - The company is undergoing ISO certification processes, including ISO 14001 and ISO 45001, to support decarbonization goals associated with energy management systems[104]. - The Port of Tocopilla was certified for Responsible Conduct, achieving level 2 certification in 2021, while the Nueva Victoria site was recertified at level 1 in 2022[103]. - The company is committed to sustainability, aiming to minimize environmental impacts and create value for stakeholders through responsible resource management[210]. Risks and Challenges - The company faces risks related to currency fluctuations, particularly with significant transactions in U.S. dollars and costs related to the Chilean peso[112]. - The company is exposed to labor strikes, with over 93% of employees in Chile, potentially affecting production levels and costs[75]. - International trade tensions, particularly between the U.S. and China, could negatively affect the company's financial performance and demand for lithium[96]. - The company has faced various lawsuits and arbitrations that could adversely impact its business and financial condition[78]. - Changes in weather patterns due to climate change could materially impact the company's operations and financial results, particularly in the agricultural sector[109]. Market Position and Competitive Landscape - The company is the world's largest producer of potassium nitrate and iodine, and one of the largest lithium producers, with 98% of sales in 2022 derived from countries outside Chile[193]. - The company is actively exploring metallic minerals, particularly copper, gold, and silver, in its mining properties, with confirmed high-grade mineralization at the Bufalo project[219]. - The principal means of competition in specialty nutrients include product quality, logistics, agronomic service expertise, and price[244]. - The company has developed marketing channels and brands, including Ultrasol and Champion, to enhance its product offerings[237]. - The restructured Qrop product portfolio includes a chloride-free line, enhancing product accuracy and availability for plants[237].

[Report of Foreign Private Issuer (Form 6-K)](index=1&type=section&id=Report%20of%20Foreign%20Private%20Issuer) This report outlines the filing of Form 20-F for FY2022, covering company details and administrative contacts [Filing of Annual Report (Form 20-F)](index=2&type=section&id=Filing%20of%20Annual%20Report%20%28Form%2020-F%29) SQM filed its Annual Report on Form 20-F for FY2022 with the SEC, making it publicly accessible online - SQM has filed its Annual Report on Form 20-F for the fiscal year ended December 31, 2022, with the SEC[3](index=3&type=chunk) - The Form 20-F can be accessed on the SEC's website (www.sec.gov) or the investor relations section of the company's website (www.sqm.com)[3](index=3&type=chunk) [Company Overview](index=2&type=section&id=About%20SQM) SQM is a dual-listed global company focused on essential industries, aiming for leadership in key chemical markets - SQM is a dual-listed company on the New York Stock Exchange (NYSE: SQM) and the Santiago Stock Exchange (SQM-B, SQM-A)[4](index=4&type=chunk) - The company's products serve key industries including health, nutrition, renewable energy, and technology[4](index=4&type=chunk) - SQM's strategic goal is to be a world leader in the markets for lithium, potassium nitrate, iodine, and thermo-solar salts[4](index=4&type=chunk) [Administrative Information](index=2&type=section&id=Administrative%20Information) This section provides contact details for investor relations and media, formally signed by the CFO on April 25, 2023 - The document lists specific contacts for investor relations and media inquiries[5](index=5&type=chunk) - The report was duly authorized and signed by Gerardo Illanes, CFO, on April 25, 2023[7](index=7&type=chunk)

Financial Data and Key Metrics Changes - The company reported a significant increase in lithium production capacity, reaching 180,000 metric tons and aiming for 210,000 metric tons by the end of the year [50][96] - The total global lithium demand is expected to reach 1.5 million metric tons by 2025, with a projected growth of at least 20% in 2023 [49][56] Business Line Data and Key Metrics Changes - The lithium business contributed to almost 80% of the gross profit for the year, driven by higher sales volumes and average prices [48] - The company is expanding its iodine and nitrate production, with a focus on developing seawater projects to increase production capacity [24][25] Market Data and Key Metrics Changes - Electric vehicle sales have increased significantly in recent weeks in China, and the U.S. market is seeing a doubling of electric vehicle sales compared to last year [49] - The company expects strong demand for iodine, with prices remaining high due to healthy demand outpacing supply [79] Company Strategy and Development Direction - The company is focused on expanding lithium production globally, with a capital expenditure plan that includes investments in lithium, iodine, and nitrates capacity expansion in Chile [72][57] - The company is actively exploring new lithium mining opportunities worldwide and is committed to sustainable practices in its operations [57][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the lithium market, anticipating a demand growth of more than 20%, potentially reaching 25% [31] - The company is preparing for supply in the market and is optimistic about the future of its projects in Chile, China, and Australia [2][10] Other Important Information - The company has a strong financial position, with cash and cash equivalents exceeding total financial interest-bearing debt, indicating readiness for future projects [41][89] - The company is working on the Salar Futuro project, with plans to submit the final project for environmental assessment in the second half of 2024 [14][16] Q&A Session Summary Question: What are the production targets for 2023? - The company targets a sales volume of around 200,000 metric tons, with China accounting for roughly 10% [37][39] Question: How will the CapEx program be financed? - The company has a strong cash position and does not foresee any issues in financing its CapEx, which includes potential partnerships and new projects [41][89] Question: What is the outlook for lithium pricing? - Management believes that lithium pricing will depend on the supply-demand balance and is structuring contracts accordingly [18][83] Question: What is the company's strategy regarding new capacity in iodine? - The company is investing in new iodine capacity, but new projects take time to get permits and environmental conditions [80] Question: How does the company view the lithium market balance? - The company expects a continued deficit in the lithium market, with demand growth outpacing supply [20][31]