Sqm corporate presentation v may

Natural Resources Specialty Business

May 2012

Growth

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.

Natural Resources Growth

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Important Notice

Specialty Business


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World Leader in Specialty Businesses

Iodine & Derivatives

37% world market share†

2011 Revenues US$455M (21%)

31% of total 2011 gross margin

Lithium & Derivatives

31% world market share†



Potassium

2011 Revenues US$556 M (26%)


Industrial Chemicals



†Market share figures are based on 2011 SQM estimates.

*Figures are based on IFRS

**EBITDA= Gross margin- SG&A expenses+ depreciation & amortization

Specialty Business

Specialty Plant Nutrition

49% world market share KNO3†



US$ M* 2010 2011 ∆

Revenues 1,830 2,145 +17%

EBITDA** 691 959 +39%

Net Income 382 546 +43%


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Unique Natural Resources

Caliche Ore Salar Brines

Nitrates

Iodine Iodine

Potassium

Lithium

Potassium

NaNO3 + KCl = KNO3 + NaCl (salt)

Specialty Business

Sodium nitrate + Potassium chloride = Potassium nitrate + Sodium chloride


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Diversified Cash Flows Exports by region 2011

• Approximately 89% of sales are exports in 2011 • Sales in more than 100 countries • Local presence in major markets • In 2011, SG&A expenses represented 4.3% of revenues.

North America 21%

Asia & Oceania 17%

Latin America 27%

Africa & Middle East 8%

Europe 27%

Specialty Business

Growth

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Potassium 26% of Total 2011 Gross Margin

Specialty Business

*SQM estimates **Price as of December for respective years

Natural Resources

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Fruits & Vegetables 22%

Maize 15%

Rice 13%Sugar 9%

Soy 7%

Wheat 6%

Palm Oil 5%

Cotton 2%

Other 21%

Potassium Consumption by Crop*

• During 2011 and 2010, fertilizer markets were positively influenced by demand and a normalization of inventory levels and optimal utilization ratios • MOP grew about 7% in 2011 over volumes in 2010, with the Brazilian market growing over 25%


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Outlook • SQM continues its expansion of potassium-based products in the Salar de Atacama, aiming to reach an installed capacity of approximately 2 million MT in 2012 • Crop prices remain strong throughout the world, and SQM remains confident in the long term sustainability of the potassium market • World demand for commodity products continues to expand as the world population grows and farmers continue to optimize utilization rates

• MOP is potassium chloride (KCl), also known as potash • SOP is potassium sulfate (K2SO4)

Potassium 26% of Total 2011 Gross Margin

Specialty Business

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SQM Production Volumes MOP + SOP


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Potassium Nitrate

Competitive Advantages Demand Drivers

• Chlorine free

• Fully water soluble

• 100% Natural origin

• Fast absorption

• High cost of land

• Water scarcity

• Demand for premium crops

Modern Agricultural Techniques

Specialty Plant Nutrition 27% of Total 2011 Gross Margin

Specialty Business

Vegetables 41%

Fruits 22%

Industrial Crops 28%

Others 9%

Main uses: Premium crops*

*SQM estimates


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Specialty Plant Nutrition* 27% of Total 2011 Gross Margin

Specialty Business

Outlook •Continued average price increases •North American and European markets will continue to be demand motivators

Overview 2011 • Completion of new potassium nitrate facility in Coya Sur (300,000 tons/year) • North American and European vegetable and tomato markets were principal motivators of demand

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SQM KNO3 Market*

SQM 49%

Haifa 32%

Kemapco 12%

Others 7%

Potassium Nitrate Market Players*

*SQM estimates


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• Approximately 55% of applications are related to human and animal health and nutrition.

• SQM is the biggest iodine producer in the world

Iodine 31% of Total 2011 Gross Margin

Specialty Business

*SQM estimates.

SQM 37%

Japan 20%

Others Chile 22%

Recycling 15%

USA 4%

Others 2%

Market Size 2011: 30,800*

X-Ray Contrast Media 20%

Animal Nutrition 8%

LCD 11%

Pharmaceutical12%

Iodophors 12%

Biocides 6%

Fluoro Derivatives 6%

Nylon 4%

Human Nutrition 3%

Others 18%

Main Uses*

Natural Resources

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Growth

Iodine 31% of Total 2011 Gross Margin

Specialty Business

*SQM estimates

Overview 2011 • Market demand and prices in 2011 reached historical highs • From 2009 through 2011, SQM captured a large part of the market growth Outlook • SQM continues to be a world leader in iodine; and will expand if world demand exists • Future demand growth expected to maintain a positive trend

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Iodine Market*


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Lithium 10% of Total 2011 Gross Margin

Specialty Business

• Battery technology for portable devices has historically been the demand driver for this market

• If only lithium chemicals are considered, SQM’s market share is 38%

SQM 31%

China 22%

Chemetall 19%

Australia 14%

FMC 11%Others 3%

Lithium Market 2011: 136,500 MT*

Batteries 33%

Glass 16%Lubricating

greases 11%

Glazes 10%

Continuous Casting 4%

A/C 5%

Polymers 3%

Aluminum 2%

Pharmaceutical 2%

Chemical Processes 1%

Others 13%

Main Uses*

*SQM estimates.


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Overview 2011 • Global demand CAGR (1997-2011): 6%-7% • Expected growth for 2012; ~ 10% • Current lithium carbonate plant capacity 48,000 MT/year, 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)

Lithium 10% of Total 2011 Gross Margin

Specialty Business

*SQM estimates

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Lithium Market*


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• Traditional applications include: metal treatment, water treatment, pyrotechnics, explosives, glass manufacturing, among others. • New demand for industrial nitrates for thermal energy storage in solar power plants will significantly increase 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

Outlook • We expect that sales for solar salts will increase significantly in 2012

Industrial Chemicals 7% of Total 2011 Gross Margin

Specialty Business


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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

Specialty Business

Capital Expenditure Program Over US$500 million for 2012

*Approximately 70% of capex expenditures will be related to expansion projects


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Financial Performance

Specialty Business

* 2008 figures prepared according to Chilean GAAP; 2009-2011 figures are based on IFRS numbers.

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Financial Performance*

Specialty Business

EBITDA (2007-2009): operating income + depreciation (not including amortization)

EBITDA (2010-2011): gross margin – SGA + depreciation & amortization

NFD: interest bearing debt net of cash and cash equivalents, considering the effects of derivatives

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* 2008 figures prepared according to Chilean GAAP; 2009-2011 figures are based on IFRS numbers.


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Key Conclusions

Business flexibility according to market conditions

Specialty Business

• Largest global producer, lowest cost producer, market growth.

• Specialty Plant Nutrition

• Iodine

• Lithium

• Solar Salts

• Growth opportunies and a low cost producer.

• Potassium

• Industrial Chemicals

• Solid financial position

• Focused on growth

Investor Relations

Sqm corporate presentation v may