Sociedad Quimica y Minera S.A.

Good morning and welcome to the SQM third quarter 2021 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. On your touchtone phone. Again, that is star then one to ask a question. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Irina Axenova, Investor Relations. Please go ahead.

Thank you, Grant. Good morning. Thank you for joining SQM's first quarter 2021 earnings conference call. This conference call will be recorded and is being broadcast live. Following this call, you will be able to access the webcast at our website, www.sqm.com. Our learning stress release and a presentation with a summary of the results have been uploaded to our website, where you can also find a link to the webcast. Speaking on the call today will be Ricardo Ramos, Chief Executive Officer, Gerardo Illanes, Chief Financial Officer, and Pablo Altimiras, Commercial Vice President, Lithium and IDI Business. who will be available to help answer any questions following the prepared remarks. Before we begin, let me remind you that statements in this conference concerning the company's business outlook, 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, including our ability to successfully implement the Sustainable Development Plan. Risks, uncertainties, and factors that could affect the accuracy of such forward-looking statements are identified in our public findings made with the U.S. Securities and Exchange Commission and in our earnings relief issued yesterday, and this forward-looking statement should be considered in light of those factors. We assume no obligation to update such statements, whether as a result of new information, future developments, or otherwise, except as required by law. I now leave you with our Chief Executive Officer, Ricardo Ramos.

Thank you, Irina. Good morning and thank you for joining the call today. Our earnings during the third quarter of 2021 were significantly higher than earnings reported during the same period last year. These results were driven by considerably higher sales volumes and prices across almost all our business lines. We continue seeing very positive market conditions in all of the markets in which we participate. Demand in lithium market is exceeding our previous expectations. The hydrogen market has recovered from the pandemic faster than anticipated, while we are also seeing a positive trend in the fertilizer markets. We are now expecting that the lithium market demand should grow close to 50% this year, driven by strong sales of electric vehicles in all relevant markets, especially in China and Europe. The capacity expansions we have been working on are allowing us to grow even more than the market, letting us reach close to 100,000 metric tons in sales volumes this year. By the middle of next year, our expansion to 180,000 metric tons should be ready, allowing us to keep on growing our sales volumes. This accelerating lithium market growth is pressuring prices. At the same time, the contracts we signed last year are expiring. This allows us to expect an average sales price higher than $12,000 per metric ton during the fourth quarter and probably even higher during the first quarter next year. In the meanwhile, the iodine market demand has already reached the pre-pandemic levels. This quick recovery has had a positive impact on prices as supply has not been able to respond. We are now expecting total sales in 2021 around 12.5 thousand metric tons, with average sales prices increasing from prices seen over past few quarters. As we are working on expanding our iodine capacity, we expect to ramp up additional thousand metric tons In the beginning of 2023, followed by approximately 2,500 metric tons in 2024, all part of our early announced growth plan. We have seen some very interesting developments in the fertilizer markets globally. Supply has been impacted by export restrictions and logistic interruptions. The spot prices for both potash and potassium nitrate fertilizer have reached levels not seen in more than a decade. We now expect our potassium and potassium nitrate average prices to reach almost $700 and over $1,000 per metric ton respectively during the fourth quarter this year. Considering all the positive factors, we now anticipate a record performance during the fourth quarter this year with a significantly higher EBITDA. We remain confident in our ability to deliver future growth. while continuing to operate in a sustainable way, creating value for our customers, communities, and all our stockholders.